Let us tell you that the Income Tax Department has made a tweet alerting all taxpayers. It has been said that taxpayers who have any income source or account in any other country, they are required to fill the foreign asset schedule while filing ITR.

Will be fined up to Rs 10 lakh

While filing ITR, you have to tell about all your income sources. Many people have many other sources of income apart from the job. At the same time, some people earn a lot of money through any job or business abroad. The Income Tax Department has said that it is necessary for such people to file ITR. If you earn money abroad in any way and hide that income while filing ITR, then income tax catches your tax evasion. For which you can be fined up to Rs 10 lakh.

It is necessary to fill foreign asset schedule

Income Tax Department has alerted all taxpayers by tweeting. The department has said that those taxpayers who have an account or income source in any other country must fill the foreign asset schedule while filing ITR for assessment year 2023-24. It is also necessary for taxpayers to tell that they should give all the information related to their foreign income and assets in such cases.

This is how people earning from abroad can save tax

According to the rules of income tax, if a person stays in India for 182 days in a financial year, then he is considered a resident. Resident Indian’s global income comes under the purview of tax. Therefore, while filing ITR, the salary received abroad has to be shown under the income from salary head.

For this, you have to convert the salary received in foreign currency into rupees and give the details of the employer. If any kind of tax has already been deducted on your salary, then you can claim tax credit by showing it in the return. To avoid double tax, you can take advantage of Double Taxation Avoidance Agreement.

The post ITR Filing Deadline: File your income tax return before this date, Such people can be fined 10 lakhs first appeared on Rightsofemployees.com.

Soon you will get Form-16 from the office and will have to file ITR by 31st July. But if you are also in tension regarding the tax money, then this news will definitely give you relief. Let us help you in planning for tax saving.

Understand here, how can you save tax?

Before filing ITR, make sure that in which schemes have you invested for your family? Today, from mutual funds to FDs, all investment options are available in the market. Today we talk about your salary and tax. Even if your salary is Rs 12 lakh, even then you do not need to pay Rs 1 tax.

Planning is necessary

To save tax, it is necessary to plan properly. For this, you can also consult an expert. If your company has deducted your tax for any reason, then by filing ITR, you can get back the deducted extra money. On the basis of 12 lakh salary, you come under 30 percent tax under the old tax regime. Actually, there is a liability of 30 percent on the annual income of more than Rs 10 lakh. For those with an annual income of Rs 12 lakh or more, it would be better to opt for the old tax regime. Let’s see the complete calculation…

This is the complete math

1. Every company gives salary to the employees in 2 parts. In a company it is called Part-A and Part-B. Somewhere it is called Part-1 and Part-2. Tax has to be paid on Part-A or Part-1 salary. Usually, on a salary of 12 lakhs, two lakh rupees are kept in Part-B or Part-2. In this way your taxable income has come down to Rs 10 lakh.

2. After this, deduct Rs 50,000 given by the Ministry of Finance as standard deduction. After deducting these, your taxable income comes down to Rs 9.50 lakh.

3. Under Section 80C of Income Tax, you can claim savings of up to Rs 1.5 lakh. In this, you can claim tuition fee, LIC (LIC), PPF (PPF), mutual fund (ELSS), EPF (EPF) or home loan principal etc. Now your taxable income has come down to Rs.8 lakh.

4. Under section 24B of income tax, you get a deduction of two lakh rupees on home loan interest. In this way, your taxable income has come down to Rs.6 lakh here.

5. After this you will have to invest 50 thousand rupees in National Pension System (NPS) under 80CCD (1B) to make the taxable income zero (0). Here the taxable salary has come down to Rs 5.5 lakh per annum.

6. Under Section 80D of Income Tax, you can claim premium for health insurance for children, wife and parents. A premium of up to Rs 25,000 can be claimed for the child and wife. If your parents are senior citizens, you can claim Rs 50,000 as premium. After deducting these two, your taxable income comes down to Rs 4.75 lakh.

There is a 5 percent tax on income from Rs 2.5 lakh to Rs 4.75 lakh. Accordingly, a tax of Rs 11,250 is made on Rs 2.25 lakh. But rebate is given by the Ministry of Finance on tax up to Rs 12500. In this way, your tax liability became zero even on a salary of 12 lakhs.

The post Good news for Income Taxpayers! Now tax will not have to be paid even on salary of 12 lakhs, know full details first appeared on Rightsofemployees.com.