Public Provident Fund (PPF) is a major investment vehicle in India. Due to the excellent interest, tax savings and no risk of money sinking, people invest a lot of money in this scheme. Any Indian citizen can start investing in PPF with Rs 500 per annum. An amount of up to Rs 1.5 lakh can be deposited in a PPF account in a financial year.

Tax exemption is available on investment in PPF under Section 80C. Apart from this, no tax is payable on interest income and the amount received at maturity. If the minimum amount of Rs 500 is not deposited in a financial year, the PPF account becomes inactive.

There are many facilities available on PPF account. In such a situation, if the account becomes inactive, then the loan facility and partial withdrawal also stop. If your PPF account is closed, then there is no need to panic. It can be easily reopened. PPF account is not only a safe investment, but it also provides many other benefits including tax savings and high interest rates. Therefore, make sure that your PPF account is not inactive and deposit the minimum amount in it every year.

 Start the account like this

• Go to the bank or post office : First of all, go to the bank or post office where your PPF account is opened.
• Fill out the form : To reactivate the account, a form will need to be filled out.
• Deposit the outstanding amount: The outstanding amount for the years in which you have not deposited money will have to be paid.
• Paying a fine: A fine of Rs 50 will also have to be paid for each financial year.

How much will be the penalty?

Suppose your PPF account is inactive for 4 years, then you will have to deposit Rs 2000 (Rs 500 per year) for 4 years. Also, you will have to pay Rs 200 (Rs 50 per year) for four years.

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After the release of the earnings figures, there was a demand from the passengers to restore the exemption given to senior citizens which was closed during the Corona period.

Indian Railways has earned a whopping Rs 11,645 crore by selling junk after earning record earnings from passenger and freight. According to the report released by the Railway Board, in the last financial year (2022-23), the Railways has earned more than the target fixed by passenger fare and freight. After the release of the earnings figures, there was a demand from the passengers to restore the exemption given to senior citizens which was closed during the Corona period.

The accounts of railway income in four years were presented

According to the recently released data, Railways has earned more than the target by selling junk. However, between 2017 and 2021, the Railways earned less than the target due to catering, advertising, parking etc. But by selling the junk, the Railways got more money than the target. This information has been revealed in the CAG report on Railways. In the report, an account of Railway Income during the four years from 2017 to 2021 has been presented.

The advertisement policy was started in January 2017.

It was told by the CAG that the Railway Board had started the advertisement policy in January 2017 through movable assets. The report said that in February 2018, the Railway Board had decided to hand over the management of the bid to the Zonal Railways due to the delay in awarding the agreement by RITES.

Various contracts were finalized by Zonal Railways under this policy during the period from 2018-19 to 2020-21. Indian Railways earned Rs 93.25 crore (28.28%) in 14 Zonal Railways. While the estimated income was fixed at Rs 329.70 crore.

Apart from the income of Rs 613 crore from parking

in the year 2017-18, the Indian Railways did not achieve the target of car/scooter parking at stations during the period under review. The income was Rs 613 crore against the target of Rs 956 crore. This resulted in a shortfall of Rs 343 crore in revenue. In 2017, the Railway Board prepared a new catering policy.

Accordingly, IRCTC was made responsible for catering services from mobile catering units, base kitchens, cell kitchens, refreshment rooms, food plazas at A1 and A category stations. During the year 2017 to 21, license fee of Rs 58.54 crore was collected against the target of Rs 72.34 crore in catering. According to the report, scrap has been identified as a high priority sector for railway funding.

The CAG audit found that the Railways earned Rs 11,645 crore from the sale of scrap during 2017-21 against a target of Rs 11,418 crore. That is, the Railways earned more than the target from scrap. From the year 2017 to 21, an income of Rs 48.17 crore was generated from the rest rooms.

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Such taxpayers (Salaried Taxpayers) can now find it costly to delay in choosing their preferred option from the two existing options of the tax system. Let us know how and also how it can be avoided…

Department will accept silence as yes

First of all, let us tell you what it means to make the new tax regime the default… This means that if you do not tell your employer about the tax regime of your choice, then you will have the option of a new tax regime. It will decide by itself. Simply put, it means that if you are a salaried person, your silence will be accepted by the Income Tax Department as yes for the new tax regime.

More TDS can be deducted

In fact, the Central Board of Direct Taxes (CBDT) asked the employers to ask the employees whether they want to remain in the new or old tax regime. According to the tax regime, the tax on salary will be calculated and the employer will pay tax at source. Deduction means TDS will be deducted. You have already known that from the financial year 2023-24 i.e. assessment year 2024-25, the new tax regime has been made the default option. In such a situation, if you do not choose the option according to your calculation, then TDS will be deducted from your salary according to the new tax regime.

This is the last chance for taxpayers

One good thing here is that the government has also given a second chance to the taxpayers. Let us assume that the old regime is beneficial for you and if you do not choose your preferred tax regime at the beginning of the financial year itself, then in such a case TDS will be deducted more from your salary. When you start filing income tax return, then you will have a chance to choose the preferred option again. If TDS is deducted more than your tax liability, then you can claim its refund. However, do keep in mind here that there is no chance to change the option once the ITR is filed.

Learn such beneficial options

The Income Tax Department wants you to choose your preferred tax regime at the beginning of the year itself and pay taxes accordingly. In the case of salaried taxpayers, the old tax regime provides benefits of close to 70 exemptions and deductions, including HRA, 80C, 80D and section 24 (b), which are not in the new regime. However, the tax rates have been kept low in the new system. Which is better for you in the new or old tax regime, you can know with the help of the calculator given on the website of the Income Tax Department…

These changes in the new tax regime

Let us tell you that the new tax regime was introduced in the year 2020. To make the new system attractive, several steps have been taken in the budget for the financial year 2023-24. First, in the new tax regime, no tax will be levied on income up to Rs 7 lakh. Apart from this, the number of slabs has been reduced from 6 to 5 in the new system. The income tax exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. Standard deduction has also been made a part of it. However, even after this, for many taxpayers, the old option is a profitable deal.

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Many rules related to income tax are also going to change in the new financial year, which is important to know. These changes were proposed in the Union Budget 2023 presented in February. So let’s know what things are going to change for common taxpayers in the next few days…

Reduction in TDS of salaried-

From next month, the salaried people are going to benefit under the new tax regime. For such people, now TDS deduction can be reduced. Such taxpayers, whose taxable income is less than Rs 7 lakh and they opt for the new tax regime, will not be charged any TDS. For this, additional exemption has been given under section 87A of the Income Tax Act.

TDS on Listed Debentures-

Section 193 of the Income Tax Act exempts TDS on interest paid in respect of certain securities. If the security is in dematerialized form and is listed on a recognized stock exchange, TDS will not be deducted on the interest paid in such cases. Except this, 10 percent TDS will be deducted on all other payments.

Tax on online games

If you also play online games and win money, then now you will have to pay heavy tax on it. Under the new section 115 BBJ of the Income Tax Act, 30% tax will be levied on such winnings. This tax will be deducted as TDS.

Here you will get less benefit-

The benefits available under Section 54 and 54F of the Income Tax Act will be reduced from the new financial year. From April 01, only capital gain up to Rs 10 crore will be exempted under these sections. Capital gain above this will be taxed at the rate of 20 per cent with the benefit of indexation.

Higher tax on capital gains

From April 1, 2023, higher capital gains tax will have to be paid on the profit made from the sale of the property. Now the interest claimed under section 24 will not be included in the cost of buying or repairing. With this, capital gains arising from transfer, redemption or maturity of market-linked debentures will now attract short-term capital gains tax.

These changes regarding gold-

If you convert physical gold into EGR or electronic gold receipt into physical gold from the month of April, then you will not have to pay any capital gains tax on it. However, to take advantage of this, you will have to get the conversion done from a SEBI registered vault manager.

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The interest rate for GPF and other funds has been retained at 7.1 per cent for January to March of the current financial year by the Ministry of Finance.

The interest rate is reviewed on a quarterly basis.

Earlier, in the quarter ended December 31, the interest rate on GPF was at 7.1 per cent. In the notification issued by the Finance Ministry, it was said that this rate is valid from January 1, 2023 to March 31, 2023. Let us tell you that the government announces interest rates for GPF and other similar funds like CPF, AISPF, SRPF, AFPPF on a quarterly basis. A decision in this regard is given by the Finance Ministry.

What is GPF?

General Provident Fund (GPF) account is only for government employees. This is a retirement fund scheme. Government employees can voluntarily contribute up to 15% of their salary to GPF. In the ‘advance’ feature of this account, the employee can withdraw the fixed amount from the GPF account on any need. Not only this, after the work is done, you can also deposit it. No contribution is made to the GPF fund by the government.

Decision on DA will be taken in March.

Apart from this, the DA hike of central employees has become due from January 1. It is expected that the government will take a decision on this before Holi in March. The AICPI index till November has been released by the Labor Ministry. On the basis of this, it is believed that the government will increase dearness allowance and dearness relief by 4 percent in March. At present the central employees get 38 percent dearness allowance, in the coming time it will increase to 42 percent.

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If you file Income Tax Return (ITR) every year, then this news is of your use. This time, before filing ITR, definitely take a look at the changes made by the Income Tax Department. Income tax return forms for the financial year 2021-22 (Assessment Year 2022-23) have been issued by the Income Tax Department.

This time not much change has been made by the Income Tax Department. But still some things have changed. Taxpayers will have to provide some additional information. If you are not aware of these changes, you may face trouble in filing ITR. Let us know about such information which you have to give while filing ITR.

1. Taxable Interest in PF Account
If your contribution in EPF account is more than Rs 2.5 lakh every year, then you will have to pay tax on the interest earned on the additional contribution. You will have to give information about this interest in the ITR form.

2. Information about buying or selling property
If you have bought or sold any kind of property between the period of April 1, 2021 to March 31, 2022, then you will have to give this information along with the date. In the ITR form, you are required to mention the date of purchase or sale under Capital Gains.

3. Information about the renovation of the
house If you have spent on the renovation of the house, then this information will also have to be given on year to year basis. This cost has to be deducted from the selling price to arrive at long term capital gain.

4. Actual Cost of Buying
While giving information about capital gains, you were required to mention only index cost now. But from this time onwards, you will have to specify the index cost as well as the actual cost of buying the property (market rate).

5. This information is also required for residential status
While filing ITR, it has been made mandatory to state the residential status. If you are filling ITR-2 or ITR-3 form then you have to opt for residential status support. In this option, you will have to tell how long you have been living in India.

6. Information about avoiding tax on ESOP
In the budget of the year 2020, it was announced that employees of a startup can avoid paying tax on ESOP. However, it has some conditions. This time during ITR filing, the employee will have to give information about the amount of tax deferred.

7. Property and income
abroad If you have a property abroad or have earned dividend or interest from any property abroad, then it is necessary to give this information while filing ITR. Form-2 and Form-3 can be used for this.

8. Information
about property sold outside the country If you have sold any property outside the country, then this information will have to be given at the time of ITR filing. In the ITR filing, the buyer and the address of the property have to be given.

9. Enhanced category for pensioners In the
ITR form, pensioners will have to tell about the source of pension. Pensioners have to choose any one of the given options in the Nature of Employment drop-down menu. If you are a central government pensioner, choose Pensioners-CG, if you are a state government pensioner, choose Pensioners-SC. Similarly, if there are pensioners of a public sector company, then Pensioners-PSU will have to be selected.

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