India has strengthened its oversight of the cryptocurrency sector by introducing detailed tax reporting guidelines for crypto service providers under the Income Tax Act. While the move does not introduce new taxes or regulate digital assets, it marks another step toward greater transparency in the country’s fast-growing crypto ecosystem.

The Central Board of Direct Taxes (CBDT) has released a guidance note explaining how crypto exchanges and other Virtual Digital Asset (VDA) service providers must comply with their reporting obligations.

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India adopts global reporting standards

The new guidance operationalises the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), an international system designed to improve tax transparency by helping authorities track cryptocurrency transactions across jurisdictions.

By adopting CARF, India joins several countries working to strengthen tax compliance in the digital asset sector.

Focus remains on tax reporting

The CBDT’s latest guidance does not alter India’s existing taxation framework for cryptocurrencies.

Instead, it provides operational clarity on how crypto exchanges and VDA service providers should report transactions under the Income Tax Act, helping authorities improve transparency and monitor taxable crypto activities more effectively.

Broader crypto policy may be taking shape

The development comes shortly after the Parliamentary Standing Committee on Finance recommended that the government examine the need for a comprehensive legal and regulatory framework for virtual digital assets.

Together, the two developments suggest that India is gradually moving toward a more structured approach to regulating the cryptocurrency industry.

Industry welcomes the guidance

Industry leaders have largely welcomed the CBDT’s move, describing it as an important milestone for the digital asset ecosystem.

Edul Patel, CEO of Mudrex, said the guidance strengthens transparency while bringing India’s reporting framework in line with international standards.

According to Patel, stronger reporting requirements could help policymakers design balanced regulations that protect investors while supporting innovation in the sector.

He added that the crypto industry has consistently sought greater regulatory clarity, and the latest guidance represents meaningful progress toward a comprehensive framework.

Exchanges see greater operational clarity

Vimal Sagar Tiwari, Co-Founder of CoinSwitch, also welcomed the guidance, saying it provides much-needed operational clarity for crypto service providers.

He noted that a standardised reporting framework will make it more difficult to underreport or conceal taxable crypto transactions through compliant platforms.

According to Tiwari, improved reporting standards are expected to strengthen transparency, accountability and trust across India’s digital asset ecosystem while benefiting regulators, exchanges and investors alike.

What the guidance means

Although the CBDT’s notification does not introduce new cryptocurrency regulations, it reinforces the government’s focus on improving tax compliance and reporting standards.

With Parliament also examining the need for broader legislation, the latest move is being viewed as another step toward a more comprehensive policy framework for cryptocurrencies in India.

FAQ

What has the CBDT announced?

The CBDT has issued detailed guidance explaining how crypto exchanges and other Virtual Digital Asset service providers must comply with tax reporting requirements under the Income Tax Act.

Does this change India’s crypto tax rules?

No. The guidance does not introduce new taxes. It focuses on improving reporting obligations and tax transparency.

What is the OECD’s Crypto-Asset Reporting Framework (CARF)?

CARF is an international reporting standard developed by the OECD to help tax authorities monitor cryptocurrency transactions and improve cross-border tax compliance.

Does this mean India will regulate cryptocurrencies soon?

The guidance itself is limited to tax reporting. However, along with recent recommendations from the Parliamentary Standing Committee on Finance, it suggests that India may be moving toward a broader regulatory framework for digital assets.

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The government had announced in the Union Budget 2024 to increase the standard deduction from Rs 50,000 to Rs 75,000 in the new regime. This clarification has also been included in the Income Tax Bill, 2025. The bill has been passed in Parliament. It is expected to come into force from April 1 next year.

Only employed people can avail the benefit of standard deduction

It is important to keep in mind that the benefit of standard deduction is available only to employed people. Earlier, the standard deduction was Rs 50,000 in both the new and old regimes of income tax. In the Union Budget 2024, the government increased it to Rs 75,000 in the new regime. But, it is still Rs 50,000 in the old regime. Standard deduction reduces the tax liability of the employee. The government had added a new provision in section 16(ia) of the Finance (No 2) Act, 2024 to increase the standard deduction to Rs 75,000 in the new regime.

Finance Minister posted about the amendment on social media

Finance Minister Nirmala Sitharaman has posted about this on the social media platform X. She has said in it that apart from the new Income Tax Bill, we are making some special amendments in the Income Tax Act, 1961. Its purpose is to clarify the situation about the new regime of income tax. In this amendment, it has been said that some special deductions will have to be made before calculating the income coming under ‘salary’.

The amendment was also incorporated in the Income Tax Bill, 2025

Under the new provision included in section 16(ia), a deduction of Rs 50,000 will have to be made. If income tax is calculated under clause (ii) of sub-section (1O) of section 115BAC, then the provision of this clause will be the same as for Rs 50,000, but instead of this, the option of Rs 75,000 will be used. This change has also been incorporated in the Income Tax Bill, 2025.

The situation regarding deduction in UPS is now clear

In this amendment, the confusion regarding deduction for Unified Pension Scheme (UPS) has been removed. After this, it has become clear that the same tax benefits will be available in UPS as are available in National Pension System (NPS). The Income Tax Bill, 2025 is expected to come into force from April 1 next year. It will replace the Income Tax Act, 1961. The rules of Income Tax Act, 1961 came into force from April 1, 1962.

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Investing in shares gives dividend. If the total income of a taxpayer is less than the exemption limit, then TDS can be deducted on it. In such a situation, it is necessary for the taxpayer to claim refund. He will get the TDS money back only after the claim. The question is what is the method of claiming refund?

Jain said that under section 139 of the Income Tax Act, if a person’s total taxable income exceeds the exemption limit before claiming deduction, then he is required to file Income Tax Return (ITR). In the old regime of income tax, this exemption limit is Rs 2.5 lakh for a person below 60 years of age. It is Rs 3 lakh for a person aged 60 to 79 years. For a person aged 80 years and above, i.e. super senior citizens, it is Rs 5 lakh.

In the new income tax regime, the basic exemption limit is Rs 3 lakh for all people. If a person’s income is less than this limit, then it is not necessary for him to file income tax return. However, he can voluntarily file ITR. If tax has been deducted from your income, but your total income is less than the exemption limit, then you will have to file ITR for refund of TDS.

He said that we can easily understand this with the help of an example. Suppose a person has shares of a listed company, from which he has received a dividend of Rs 70,000 in the last financial year. TDS of Rs 2,500 has been deducted on this dividend income. But, his total income is less than the exemption limit. In such a situation, he will have to file income tax return for refund of TDS.

There is a fixed rule for TDS on dividend income. If a person receives more than Rs 10,000 dividend from a company in a financial year, then TDS will be deducted on it. If that person wants that TDS should not be deducted on his dividend income, then he will have to submit Form 15G to every company from which he is expected to receive dividend. Form 15G is for a person whose age is less than 60 years. If the person is more than 60 years of age, then he will have to submit Form 15H.

After submitting this form, the company will pay dividend to the person without deducting TDS. Taxpayers should submit this form at the beginning of the year. This will prevent the company from deducting TDS on their dividend income. It is important to keep in mind that you have to submit this form to every company from which you expect to receive dividend.

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Even today, cash is accepted in many places in India. Especially in real estate, business deals and social work, cash is used a lot. But if you cross some limits in cash transactions, you may have to lose everything.

Financial advisors and tax experts have warned via social media that large cash transactions can lead to harsh penalties under Indian tax laws. A recently viral post shows how easy it is to break the rules and the consequences can be brutal.

100% penalty can be levied

In a post on X (formerly Twitter), CA Nitin Kaushik wrote, ‘If you accept more than ₹ 2 lakh in cash, you can lose everything! Do you think you can get away with it by making payments through different modes? Then think again! Under Section 269ST of the Income Tax Act, accepting ₹ 2 lakh or more in cash, even if in installments, can attract a penalty of 100 percent. This means that you can lose everything you have received.’

CA explained how the rule works? 

• One day limit: Receiving more than ₹2 lakh cash in a day will be considered a violation of the rules. Example: ₹1.5 lakh received in the morning and ₹1 lakh in the evening? If the total is ₹2.5 lakh, then the fine will be only ₹2.5 lakh. 
• Splitting the payment on a daily basis? This doesn’t help. Example: Selling a plot for ₹3 lakh and taking ₹1 lakh daily for three days, this too will be considered illegal. 
• Wedding and event expenses are counted as one transaction. Example: ₹1.5 lakh for catering + ₹1 lakh for decoration = ₹2.5 lakh penalty will be imposed. 

Citing a real case, he said, “A seller received ₹5 lakh every month for six months for a property deal. Each payment was less than ₹2 lakh but the total was ₹30 lakh. The final penalty was ₹30 lakh.”

How to avoid paying a fine?

Never accept a cash transaction of more than Rs 2 lakh. No matter how you distribute it. Avoid large cash transactions in business, property or events. Transactions should be accepted only through bank transfer, UPI or digital payment. Many people unknowingly break this rule and then have to pay a heavy price. 

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This is also visible in the draft. Now the entire 12 months of the financial year will be called Tax Year, while the word Assessment Year will not be used. Apart from this, the picture has been clarified in the draft from standard deduction to capital gains tax. This New Tax Bill will come into effect from April 1, 2026.

Capital gains rates remain unchanged

According to this draft of 622 pages and 536 sections, the use of assessment year has ended and now it has been defined as tax year. The entire 12 months of the financial year will now be called tax year. No change has been made in the period of short term capital gains for the stock market in the draft. Under section 101 (b), a period of up to 12 months will be considered as short term capital gains. Apart from this, its rates have also been kept the same. Short term capital gain tax has been retained at 20%.

The number of pages in the Income Tax Act has been reduced

Another big change has been seen in the New Income Tax Bill 2025. That the number of pages in it has been reduced. It has become much less as compared to the Income Tax Act 1961 which was 63 years ago. Let us tell you that there were a total of 880 pages in the Tax Act 1961, which has now been reduced to 622. However, the chapter number has been kept as it is 23.

CBDT gets this right

The next big change in the New Tax Bill as compared to the Income Tax, 1961 is related to the Central Board of Direct Taxes i.e. CBDT. According to the bill draft, earlier the Income Tax Department had to approach the Parliament to start various tax schemes, but according to the New Tax Act 2025, now CBDT has been given the right to start such schemes independently. Its purpose is to eliminate the problem of bureaucratic delays.

It is clear that according to the New Tax Act, CBDT can now prepare and present tax related administrative rules without making repeated legislative amendments as per section 533. Along with this, it can implement a digital tax monitoring system.

No change in tax regime

Along with this, no change has been made regarding the New Tax Regime in the new tax bill 2025 and the rates announced in the budget will remain the same. Slabs have been changed in the new tax regime and income up to Rs 12 lakh has been kept out of income tax. Apart from this, the standard deduction under the new tax regime will be Rs 75,000 and in the old tax regime it will be Rs 50,000.

New tax slab 2025

Income up to Rs 4 lakh No tax

• 4 lakh From Rs 1 to Rs 8 lakh 5 per cent tax
• 8 lakh From Rs 1 to Rs 12 lakh 10 per cent tax
• 12 lakh From Rs 1 to Rs 16 lakh 15 per cent tax
• 16 lakh From Rs 1 to Rs 20 lakh 20 per cent tax

Let us tell you that this New Tax Act 2025 was approved in the Union Cabinet meeting led by PM Narendra Modi last week and now it will be introduced in the Lok Sabha, after which it will be sent to the Standing Committee for detailed discussion.

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Under the Income Tax Act 1961, it has remained at Rs 1.5 lakh for the last decade. While inflation and income are constantly increasing, the limit of 80C has not been increased for a long time.

What is Section 80C?

Section 80C of the Income Tax Act is used by most taxpayers. It allows individual taxpayers and Hindu Undivided Families (HUFs) to claim tax exemption on investments and expenses. Exemption under 80C is available to taxpayers who file returns under the old tax regime. In the current system, a maximum exemption of Rs 1.5 lakh can be availed in a financial year.

Investments – Options under 80C

• Equity Linked Savings Schemes (ELSS)
• Public Provident Fund (PPF)
• National Savings Certificate (NSC)
• Employee Provident Fund (EPF)
• Unit Linked Insurance Plans (ULIP)
• Sukanya Samriddhi Scheme
• Senior Citizen Savings Scheme (SCSS)
• Five Year Tax Saving Fixed Deposit
• Tuition fees for up to two children
• Home Loan Principal
• Life insurance premium
• Contribution to National Pension System (NPS)

How to claim discount?

To claim deductions under section 80C, taxpayers must make investments or expenditures within the financial year (April 1 to March 31). These amounts have to be reported in the relevant section while filing income tax returns (ITR). Attaching certificates of investment and payment eases claim processing.

What are the expectations from Budget 2025?

The limit of Section 80C has been stagnant at Rs 1.5 lakh since 2014. Taxpayers and financial experts say it should be increased in line with the current economic situation. Rajiv Gupta, President, PB Fintech, said that since Section 80C covers investments like PPF and home loans, the exemption limit gets exhausted quickly. If term insurance is put in a separate tax exemption category, it will encourage life insurance and provide better protection to Indian families.

What does this limit mean for taxpayers?

If this limit is increased in Budget 2025, it will not only provide relief to taxpayers but will also encourage more investments in financial savings schemes.

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However, these are just budget expectations that crores of taxpayers of the country are expecting. This step can prove to be a big good news for crores of taxpayers. Currently, taxpayers who choose the old tax regime take advantage of saving tax under this limit, whereas this facility is not available under the new tax regime.

When was the last time the 80C limit was increased?

The Section 80C limit was last increased in 2014, when then Finance Minister Arun Jaitley raised it from Rs 1 lakh to Rs 1.5 lakh. This change was a major part of the government’s first budget. However, it has remained unchanged for the last decade. Taxpayers have been hoping for a long time that the 80C limit will be increased to provide relief according to their rising costs and income.

What is the benefit of Section 80C?

Under Section 80C, taxpayers get the benefit of tax deduction up to Rs 1.5 lakh. Under this, taxpayers can save tax on investments and expenses like various saving schemes like PPF, ELSS, life insurance, NSC and children’s tuition fees. This deduction is available only for individuals and Hindu Undivided Families (HUF).

Why should the 80C limit be increased?

Changing the limit of Section 80C reduces the taxable income of taxpayers, thereby benefiting them directly. Despite rising costs and increasing salaries over the years, there has been no change in the limit of 80C. This makes many taxpayers feel the need to save their taxes by utilising the entire limit.

What are the expectations from Budget 2025?

The Finance Minister will present the Union Budget on 1 February 2025. Taxpayers are hoping that the 80C limit will be increased to Rs 3 lakh, which will give them more exemption in their investments and savings. If this happens, this move will prove to be a big relief for taxpayers from the government.

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PAN card is necessary for children too! (PAN Card for Minors)

If you think that PAN card is only for adults, then you are wrong. PAN card is important not only for adults but also for children. If your child has his own PAN card (PAN Card for Minors), then many tasks will become easy. Minors below 18 years of age can also get their PAN card made. But the application for this can be made only by their parents or guardians.

Let us tell you that according to section 160 of the Income Tax Act, there is no minimum age for making a PAN card. Here we will tell you how a minor can apply for a PAN card and what documents are required for this.

Let us know in which cases children need a PAN card:

1. Investment Purposes: If you are making any investment in the name of your child, then his PAN card will be required for this.
2. Nominee for Investments: If you make the child a nominee in any of your investments.
3. Bank Accounts: While opening a bank account in the name of your child.
4. Income Earning: If the minor has any source of income.

How to apply for a PAN card for children (Apply PAN Card for a Child)

How to apply for a PAN card for children: It is very easy to get a PAN card for a child. You just have to submit some necessary documents and fill the application form. You can apply for a PAN card for children either online or offline.

How to apply for PAN card online (Online PAN application)

To apply online, follow the steps given below.

Step 1. First of all go to the NSDL website and download Form 49A.
Step 2. Fill Form 49A carefully, read all the instructions carefully, and fill all the personal details by selecting the correct category.
Step 3. Upload the child’s age certificate, required documents and a photo of the parents.
Step 4. Upload the signature of the parents and pay the fee of Rs 107.
Step 5. After submitting the form, you will get a receipt number with the help of which you can track the status of the application. Step
6. After verification, you will get a PAN card within 15 days.

Process to apply for offline PAN card (Offline Apply for PAN Card) 

To apply for PAN card offline, follow the steps given below

Step 1. Go to the official website or NSDL office and collect Form 49A.
Step 2. Fill the form completely. Attach two photographs of the child and the necessary documents with the form.
Step 3. Now submit the filled form and document fee to your nearest NSDL office.
Step 4. After verification, the PAN card will be sent to the given address.

Documents required for making PAN card for a child

• Address proof and identity proof of the parents of the minor
• Parents can use any one of the following documents for identity proof:
• Aadhar card
• Ration Card
• Passport
• Driving License
• Voter ID Card
• Copy of any one of the following for address proof:
• Aadhar card
• Post Office Passbook
• Property registration document
• Domicile Certificate 

It is necessary to update PAN card after turning 18 years old

You have to apply to update your PAN card after you turn 18. Because the PAN card issued to minors does not include their photo or signature. Therefore, to use it as identity proof, it is necessary to update it after turning 18.

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The adornment for women is an asset that comes in handy in difficult times. The transaction of gold has been happening from one generation to the other. Every family in India has some gold, be it jewelry, gold and silver coins. But do you know that there is a limit to keep gold at home? The government has set a rule for keeping gold at home. You may get into trouble if you cross the limit of keeping gold.

How much gold can one keep at home?

Under the Income Tax Act of the Government of India, a limit has been set for keeping gold at home. According to this limit, the limit is different for men and women. According to the Central Board of Direct Taxes (CBDT), you can keep a certain amount of gold at home. If you keep more gold than this fixed limit, then you will have to provide proof of it. You should have receipts related to the purchase of gold etc.

1. In India, a married woman can keep up to 500 grams of gold at home.
2. Unmarried women can keep up to 250 grams of gold at home.
3. Men are allowed to keep only 100 grams of gold.

Will there be tax on ancestral gold?

If you have bought gold from declared income or tax-free income or you have inherited gold legally, then you will not have to pay any tax on it. That is, gold jewellery found within the prescribed limit will not be confiscated by the government, but you will have to show receipt for gold outside the prescribed limit.

How much tax will have to be paid on selling gold?

If you sell the gold kept at home, then you have to pay tax on it. If you sell gold after keeping it for three years, then the profit from it is considered as Long Term Capital Gains (LTCG) and it will be taxed at the rate of 20 percent. Is there tax on inherited gold? On the other hand, if you sell the gold bond within 3 years, then the profit from it will be added to your income and your income tax will be taxed according to the income tax slab. If you sell it after three years, then the profit is taxed at 20 percent indexation and 10 percent without indexation. But if you keep the gold bond till maturity, then there is no tax on the profit.

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The NDA government is now busy preparing for the Union Budget 2024 (full budget). Although the date of presentation of Budget 2024 is not clear yet, it is expected that Finance Minister Nirmala Sitharaman can present it in Parliament on 22 July 2024 this month. Everyone has high expectations from this budget and it also includes relief in capital gains tax. Let us know what indications are being received from the Finance Ministry regarding this?

This indication on capital gains tax

is that the general budget of Modi 3.0 is about to be presented. But people hoping for relief in capital gains tax may be disappointed this time too. According to a report published in Business Today, there is no possibility of review and simplification of the capital gains tax system at present. This proposal cannot be included in the Union Budget 2024-25.

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It said that the industry and experts are advocating a comprehensive review and rationalisation of the capital gains tax system across various asset classes, but according to sources, there are indications that the government is currently not keen to undertake such an exercise and change the existing classification.

Long standing demand, not expected at the moment

The report quoted a person familiar with the matter as saying that this is a huge exercise, which will have an impact on various asset classes and investments. Although there has been a demand for it in the last few years, it is not being planned right now and it can be started later. Currently, capital gains tax is levied on long term and short term basis, which depends on the holding period and is different for different asset classes. This tax is levied on stocks, mutual funds and capital assets.

Industry bodies have made this demand

According to sources, this issue has been raised in the pre-budget meeting with Finance Minister Nirmala Sitharaman, but no proposal is likely to come in the budget. Industry body FICCI has appealed to simplify the capital gains tax system in terms of LTCG tax rate and STCG tax rate in its pre-budget recommendations. EY India has also called for simplifying this tax and said that the complexity in its structure should be thought about.

What is capital gains tax and where is it applicable?

As per the Income Tax law, Capital Gains Tax is payable on profits earned from the sale of both movable and immovable assets. Capital gains tax on equity, loans and real estate is applicable at different rates and periods, which helps in understanding whether the gain is short-term or long-term.

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Finance Minister Nirmala Sitharaman in her interim budget speech for 2024-25 announced withdrawal of outstanding direct tax demand up to Rs 25,000 up to assessment year 2010-11 and Rs 10,000 from assessment year 2011-12 to 2015-16. The total tax demand involved in this is around Rs 3,500 crore.

The Central Board of Direct Taxes (CBDT) issued this order to implement the announcement made in the interim budget for 2024-25. CBDT has said in the order that till January 31, 2024, a maximum limit of Rs 1 lakh per taxpayer has been fixed for waiving off such outstanding tax demands related to income tax, property tax and gift tax.

The limit of Rs 1 lakh includes the principal amount of tax demand, interest, penalty or fee, cess, surcharge. However, this exemption will not be applicable to demands made against tax collectors deducting tax under the TDS (tax deducted at source) or TCS (tax collected at source) provisions of the Income Tax Act.

No entitlement to any claim of ‘credit’ or ‘refund’: Manish Bawa, partner, Nangia Anderson India, said the instructions make it clear that this exemption does not entitle taxpayers to any claim of ‘credit’ or ‘refund’ Is. Additionally, the exemption will not affect ongoing, planned or potential criminal legal proceedings against the taxpayer and does not provide any immunity under any law.

Sitharaman had said in the budget speech, “A large number of small direct tax demands are pending in the books of accounts. Many of those demands are older than 1962. This causes trouble to honest taxpayers and creates problems regarding refunds.

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Tax benefits will be available in these cases

The condition for claiming House Rent Allowance i.e. HRA is that you are getting HRA from your employer i.e. your company. Meaning HRA should be a part of your salary. Apart from this, you should be paying rent on the house in which you are living. That house should not be yours.

The calculation will be done like this

The calculation of HRA exemption depends on three things. First, the actual amount received as HRA. Second, 50 percent of basic salary + DA in metro cities and 40 percent of basic + DA in non-metro cities and third, the amount after deducting 10 percent of basic salary + DA from the actual amount of rent. Tax exemption will be available on the amount which is lesser among the three. The HRA amount is deducted from the salary income. This way helps in saving tax.

PAN is imposed if the fare is more than this

To get tax exemption on HRA, you have to give the rent receipt and rent agreement to the employer. If the annual rent is more than Rs 1 lakh i.e. monthly rent is more than Rs 8,333, then according to the circular of the Central Board of Direct Taxes i.e. CBDT, it is mandatory for the employee to provide the PAN number of the landlord. Even if the landlord does not have PAN, the employee can claim HRA.

You can do this work if you do not have PAN card

In such a situation, the employee has two options. The first is that he will have to submit a declaration to the company, which the employee will have to get filled by the landlord. In this, the name, age and other details of the landlord have to be given. In this, the landlord declares that he does not have a PAN card, after which the company accepts it.

The taxpayer also has this option

There is also a possibility that the company may not agree to the declaration. In such a situation, the employee can claim HRA while filing income tax return. However, in this case the employee may receive a scrutiny notice. Since there will be a difference in the income reported by the company in Form-26AS and the income reported in the return filed by the employee. The Income Tax Department may ask about this difference. At that time the employee should have the rent receipt and rent agreement along with the landlord’s declaration.

Be sure to take care of this document

Many times landlords refuse to give PAN number or take rent in cash. In such a situation, registered rent agreement can help. For registration of rent agreement, name, address, duration of the agreement, rent amount along with PAN card and ID proof of the landlord and tenant are required. As soon as the rent agreement is used to claim HRA, the PAN information of the landlord will reach the Income Tax Department. Apart from this, the employee should pay the rent through cheque, net banking or UPI instead of cash.

These precautions will help

To claim HRA, rent agreement and rent receipt are necessary. Making payment through proper rent agreement and banking channel will facilitate the employee in claiming HRA. Also, this income from rent will be visible in the annual information statement of the landlord. In such a situation the landlord will have to pay tax. Otherwise it can be considered as tax evasion.

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Agricultural Income

The most famous category of tax-free income is income from agriculture. Income earned from agricultural activities is free from income tax under Section 10(1) of the Income Tax Act, 1961. The logic behind this exemption is to support and promote the agriculture sector, which plays an important role in the country’s economy. Tax-free agricultural earnings encourage farmers to invest in their farms and improve agricultural methods.

Gifts and Heritage

Gifts received by individuals in India are generally tax-free, provided they satisfy certain conditions laid down in section 56(2) of the Income Tax Act. Similarly, inherited property is not subject to income tax. This exemption has been given because imposing tax on gifts and inheritances will not increase family financial support and will hinder the transfer of money between generations.

Interest on PPF and EPF

Interest earned on investments in Public Provident Fund (PPF) and Employees Provident Fund (EPF) is tax-free. These investments are encouraged because they promote long-term savings and financial security for individuals. The government encourages citizens to contribute to these plans by providing tax exemption on the interest earned.

Profit on long-term investment

Long-term capital gains (LTCG) arising from the sale of certain assets like equity shares and mutual funds are tax-free if they meet certain criteria. The government aims to encourage long-term investment in the capital market by providing this exemption. However, tax has to be paid on short-term capital gains.

HRA (House Rent Allowance)

House Rent Allowance (HRA) is a component of salary that can be tax-free. If the taxpayer fulfills certain conditions given in section 10(13A). The purpose behind this exemption is to reduce the financial burden on people living in rented houses.

It is noteworthy that it is important for taxpayers to understand the categories of tax-free income to customize their financial plan. These rebates are designed to support specific sectors, encourage long-term savings and provide relief in certain circumstances.

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In such a situation, a question arises in the minds of many people that whether PAN card is necessary for senior citizens to file ITR? Can a senior citizen file his/her ITR without PAN card or not? Let us know the answer to this question.

Can senior citizens file ITR without PAN?

This can be understood through an example. Let us assume that a senior citizen had deposited his money in FDs of different banks. Now he had also submitted 15G form to avoid tax deduction. But due to lack of PAN, the bank deducted tax at the rate of 20 percent. Now the bank advised him to file ITR for refund.

Now, according to Section 206AA of the Income Tax Act, if PAN is not available, the bank can deduct tax at the rate of 20 percent. Even if Form 15G is submitted. In such a situation, it is necessary for any senior citizen to submit Form 15H.

You cannot file ITR without PAN

Please note that ITR cannot be filed without PAN. To claim refund of tax already deducted by the bank, it is necessary to file ITR. In such a situation, if you do not have PAN, then to file ITR you will have to first apply for PAN. However, if you have Aadhaar number then you can use it in place of PAN. A senior citizen can submit the TDS return to the bank with a request to update it by writing PAN or Aadhaar number in front of his name.

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Agricultural Income

The most famous category of tax-free income is income from agriculture. Income earned from agricultural activities is free from income tax under Section 10(1) of the Income Tax Act, 1961. The logic behind this exemption is to support and promote the agriculture sector, which plays an important role in the country’s economy. Tax-free agricultural earnings encourage farmers to invest in their farms and improve agricultural methods.

Gifts and Heritage

Gifts received by individuals in India are generally tax-free, provided they satisfy certain conditions laid down in section 56(2) of the Income Tax Act. Similarly, inherited property is not subject to income tax. This exemption has been given because imposing tax on gifts and inheritances will not increase family financial support and will hinder the transfer of money between generations.

Interest on PPF and EPF

Interest earned on investments in Public Provident Fund (PPF) and Employees Provident Fund (EPF) is tax-free. These investments are encouraged because they promote long-term savings and financial security for individuals. The government encourages citizens to contribute to these plans by providing tax exemption on the interest earned.

Profit on long-term investment

Long-term capital gains (LTCG) arising from the sale of certain assets like equity shares and mutual funds are tax-free if they meet certain criteria. The government aims to encourage long-term investment in the capital market by providing this exemption. However, tax has to be paid on short-term capital gains.

HRA (House Rent Allowance)

House Rent Allowance (HRA) is a component of salary that can be tax-free. If the taxpayer fulfills certain conditions given in section 10(13A). The purpose behind this exemption is to reduce the financial burden on people living in rented houses.

It is noteworthy that it is important for taxpayers to understand the categories of tax-free income to customize their financial plan. These rebates are designed to support specific sectors, encourage long-term savings and provide relief in certain circumstances.

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Which form to fill

First of all, let us tell you that people below 60 years of age have to fill 15G form, which has a condition that no income tax should be made on you. Second, your total income should be less than 2.5 lakh.

How senior citizens can save tax

Above 60 years i.e. for senior citizens, 15H form will have to be filled. The condition of 15H is that no tax should be made on your income. There is no condition of basic exemption limit in this. If the interest is going above the basic exemption limit, but you will not be taxed if you do not have any other income. In this condition, you can go to the bank and fill 15H form, in which case the bank will not deduct your TDS and all your interest will come to your account.

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Every taxpayer has to pay tax on the income derived from his business or employment. This tax is levied on a percentage of his income limit. But income tax also has provisions for non-taxable income. They are excluded from the ambit of income tax.

Under the Income Tax Act, 1961, income derived from agriculture is excluded from the ambit of income tax. Hindu undivided family income, income from immovable property or income from ancestral property are not taxed.

As per Section 56(ii) of the Income Tax Act, gifts including property, jewellery, money etc. given by a relative are exempt from tax. However, gift received from a person other than a relative is exempted only upto Rs.50 thousand.

The amount of gratuity received after the death or retirement of a government employee is completely tax free. Similarly, private sector employees get exemption on gratuity amount up to Rs 10 lakh received on account of retirement or disability. As per the Income Tax Act, tax relief on gratuity also depends on other factors.

Under Income Tax Act 10(15) certain interest on certain income is exempt from tax. This includes the interest earned on the Suvarna Vaoda Yojana, Local Authority and Infrastructure Bonds and the interest earned under the Sukanya Samriddhi Yojana. No tax is levied on it.

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Every taxpayer has to pay tax on the income derived from his business or employment. This tax is levied on a percentage of his income limit. But income tax also has provisions for non-taxable income. They are excluded from the ambit of income tax.

Under the Income Tax Act, 1961, income derived from agriculture is excluded from the ambit of income tax. Hindu undivided family income, income from immovable property or income from ancestral property are not taxed.

As per Section 56(ii) of the Income Tax Act, gifts including property, jewellery, money etc. given by a relative are exempt from tax. However, gift received from a person other than a relative is exempted only upto Rs.50 thousand.

The amount of gratuity received after the death or retirement of a government employee is completely tax free. Similarly, private sector employees get exemption on gratuity amount up to Rs 10 lakh received on account of retirement or disability. As per the Income Tax Act, tax relief on gratuity also depends on other factors.

Under Income Tax Act 10(15) certain interest on certain income is exempt from tax. This includes the interest earned on the Suvarna Vaoda Yojana, Local Authority and Infrastructure Bonds and the interest earned under the Sukanya Samriddhi Yojana. No tax is levied on it.

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If you start tax planning as soon as the year starts, then you can save a lot of tax. Sometimes the tax on your salary can also be zero. For this, you can use the deductions and exemptions available under the Income Tax Act. Along with this, you will also have to get your salary structure done in such a way that you can get the benefit of maximum reimbursement. If you use every investment and reimbursement to the maximum extent, then it is possible that you can get tax exemption even on salary up to Rs. 12 lakh, that is, there will be zero tax on your salary (Zero tax on rs. 12 lakh salary).

First work on your salary structure

During the beginning of the year, there is often an option to change the salary structure. You can decide by yourself how much money you need as reimbursement and how much money as taxable salary. In reimbursement, options like conveyance, LTA, food-coupon or entertainment, internet or phone bill and petrol are available. HRA plays an important role in saving tax. Let us know how you can save your tax with the help of all these.

First understand how much HRA can be benefited

When you are claiming HRA, you have to extract 3 types of figures. Whichever figure is the lowest among them, you get tax exemption on it.

• The HRA given by the company in the salary can be claimed.
• HRA can be claimed up to 50% of basic salary in metro cities and 40% of basic salary in non-metro cities.
• After deducting 10% of the basic salary from your total rent, you can claim that much HRA.

If you live in a metro city, then it is common to have a house rent of 15-20 thousand rupees in today’s time. Let us assume that your house rent is Rs 20,000, which is about 20% of your monthly salary. Whereas the basic salary is about 50% of your CTC, so let’s assume that your basic salary is around Rs 6 lakh. In such a situation, in the above mentioned 3 situations, your HRA will be something like this.

• Usually about 40 percent of the basic salary is received from the company as HRA. That is, you will get HRA of about Rs 2.4 lakh.
• Due to living in a metro city, you can take HRA up to 50% i.e. Rs 3 lakh.
• According to 20 thousand rupees, your annual rent is about 2.4 lakh rupees. From this, after deducting 10% of basic salary i.e. 60 thousand rupees, your amount comes to 1.8 lakh rupees.

Now if seen, Rs 1.8 lakh is the lowest among these three figures, so on this much money you can get exemption under HRA.

Leave travel allowance 

You can take advantage of this twice in 4 years. Under this, you can go somewhere and you can get the benefit of Leave Travel Allowance on the fare for commuting. Generally, about 10 percent of the basic salary is given by the companies as leave travel allowance. Now if you have a basic salary of Rs 6 lakh, then you will get a leave travel allowance of about Rs 60 thousand.

If you calculate the average on an annual basis, then you will get a tax exemption of about Rs 30,000. If leave travel allowance is not included in your salary, then get it included so that you can take advantage of it. Keep in mind, if you fall in the 30 per cent slab, you can save a lot of money with the help of LTA. It would not be wrong to say that with the help of LTA you will get 30 percent cheaper in a way.

Must get reimbursement

Many things are given to the employees by all the companies as reimbursement. Let’s know about each one by one and understand how much money you can save.

Conveyance Reimbursement: Under this, you can usually get a reimbursement of up to Rs 1-1.5 lakh from the company. Let us assume that your company gives you conveyance reimbursement of Rs 1.5 lakh, then this amount will become non-taxable to you.

Internet Bill:In today’s time, almost every business needs internet broadband. You can get good speed internet broadband for Rs 700-1000 per month. In such a situation, the company gives almost the same amount in reimbursement. If you do not have this component in your salary, then include it in your salary and get tax exemption. Let’s assume that under this you can make non-taxable up to Rs 1000 per month i.e. Rs 12000 annually.

Food or Entertainment Reimbursement: Earlier this reimbursement was in the form of food coupons, which can now be redeemed by showing your food bill. Under this, the company usually gives around 2000 rupees per month i.e. 24 thousand rupees easily annually.

Uniform, Fuel, Books & Others: Different companies also give some reimbursement in the name of uniform, fuel, books, magazine, paper etc. Talk to the HR of your company once and ask if these facilities are there. If you get these reimbursements, you will be able to save tax on some more money. Generally, by combining all these, you can get a reimbursement of up to Rs.1000-2000. Let us assume that you get reimbursement of only Rs.1000 per month, even then you will get the benefit of not paying tax on Rs.12,000 annually.

You also get many deductions

Under the Income Tax Act, you also get some deductions which prove to be helpful in reducing your taxable salary.

1- First of all, 50 thousand rupees will be given to every employed person.standard deduction Get. That means, whatever your salary, close your eyes and reduce 50 thousand rupees just like that.

2- Second largest deduction is available 80C of, under which you can get tax exemption on investment up to Rs 1.5 lakh. This includes PPF, Sukanya Samriddhi Yojana, NPS, child’s tuition fees, life insurance premium etc. Let us assume that you utilize this entire limit and claim a deduction of up to Rs 1.5 lakh.

3- After this 80CCD(1B) Under this, you get the benefit of investing an additional Rs 50,000 in NPS. So you can save some additional tax while securing your future.

4- In today’s time everyone takes health insurance. Section 80D Under this, you can save tax up to Rs 25,000 by taking health insurance for yourself. Also, by taking health insurance for parents, you will be able to save tax on Rs 25,000. That is, under this, your total deduction can be up to 50 thousand rupees. If your parents are above the age of 65, then you will get a deduction of Rs 50,000 for them. In this case, you will be able to save tax up to Rs 75,000. For the time being, assume that you will be able to save tax on a total of Rs 50,000 under 80D.

Now understand the calculation

There are total 4 parts of this calculation. The first is HRA, under which you will get tax exemption up to Rs 1.80 lakh. The second part is reimbursement. If you add all the reimbursements mentioned above, then you can get a total reimbursement of Rs. 1.98 lakhs. And the third part is the deduction. If you add the deduction available under all the sections, then you will get a total deduction of Rs 3 lakh. Apart from this, the fourth part is Leave Travel Allowance, on which you can take advantage only twice in 4 years. So if you calculate the average on an annual basis, then you will get a tax exemption of about Rs 30,000. That means, out of your salary, Rs 7.08 lakh will not be directly taxed.

Your annual salary was Rs 12 lakh, out of which Rs 7.13 lakh will not be taxed. In this case, your taxable salary is saved by Rs 4.92 lakh. Your taxable salary is less than Rs 5 lakh, so you will also get rebate under 87A on this. Explain that no one has to pay tax on salary up to Rs 2.5 lakh, while 5% tax is levied on salary ranging from Rs 2.5 to Rs 5 lakh, but if your total taxable salary is Rs 5 lakh or less, then the government will give you Gives rebate up to Rs 2.5 lakh, which means you don’t have to pay tax up to Rs 12,500. In this way all your tax becomes zero. Now your taxable salary has become Rs 4.92 lakh, which is less than Rs 5 lakh, so you will also get the benefit of this rebate and your tax liability will be zero (0).

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Do you know why Form 16 is provided to you? Form 16 plays an important role in filing Income Tax Return (ITR) as it provides complete details of salary paid to the employee, tax exemption claimed by the employee and tax deducted at source (TDS) by the employer .

Section 203 of the Income Tax Act of 1961 makes it mandatory for employers to issue Form 16 to their employees showing the total TDS on income. After you have received Form 16, it is important for you to check its details thoroughly to ensure that all exemptions and allowances are shown correctly. Such allowances mainly include House Rent Allowance (HRA) and Leave Travel Assistance (LTA).

Take special care of these things

1. First of all, you have to check that your PAN number matches with the PAN in the form. If the PAN is incorrect, the tax deducted from your salary will not reflect in Form 26AS and you will not be able to claim credit for the same while filing your ITR.
2. Cross-check the correctness of your name, address and employer’s TAN (Tax Deduction and Collection Account Number).
3. It is important to cross-check the actual tax deducted from your salary income by comparing it with the tax reflected in Form 16, Form 26AS and AIS (Annual Information Statement).
4. If you find any mistake, immediately inform the employer about that mistake and request to rectify the information in Form 16.
5. If you have opted for Old Tax Regime and have claimed tax exemptions, ensure that they are correctly reflected in Form 16.
6. If you have changed jobs during the financial year 2022-23, then it is necessary to take Form 16 from both the employers.
7. Before filing your ITR, it is necessary to cross-check and verify the information in Form 16 with your salary slips, AIS (Annual Information Statement), and Form 26AS.
8. It is very important to cross-check all the income declared in AIS with TDS certificate, interest income certificate and Form 26AS.

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On the other hand, if taxpayers default in paying tax or disclosing information, then many penalties are also prescribed under the Income Tax Act. Penalty is a penalty imposed on the taxpayer for non-compliance.

income tax return

Every year a date is fixed by the government for filing income tax return. On the other hand, if a taxpayer is not able to file tax till this due date, then he can also be fined. As per the changed rules notified under Section 234F of the Income Tax Act, you may have to pay a maximum penalty of Rs 5,000 for filing your ITR after the deadline.

For ITR FY 2022-23 if you file your ITR before 31 July 2023 (Individual ITR), then no penalty will be imposed. For filing returns after July 31, 2023, the penalty limit will be increased to Rs 5,000. However, as a relief to small taxpayers, the Income Tax Department has said that if your total income does not exceed Rs 5 lakh, then the maximum penalty that can be imposed for delay will be only Rs 1,000.

Income tax

On the other hand, if someone files income tax return till December 31, 2023, then a fine of Rs 5,000 will be imposed as late filing, but after that if someone files income tax return for the financial year 2022-23, then as late filing A fine of Rs 10,000 will be imposed on him. In such a situation, file income tax return on time to avoid the penalty amount.

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Earlier its deadline was ending on March 31, 2023. Now in today’s latest update, this deadline (aadhaar pan linking deadline) has been increased to June 30, 2023. However, the condition of penalty is applicable for this period also. You will have to pay a fine of Rs 1,000 for linking PAN-Aadhaar. But there are some people in the country who do not need to link PAN-Aadhaar card at all. Whether the deadline increases or not, they should not worry at all.

Who does not need to link PAN-Aadhaar card

According to section 139AA of the Income Tax Act, every person in the country who was allotted a Permanent Account Number i.e. PAN on July 1, 2017 and who is also eligible to get an Aadhaar number, is required to link Aadhaar card with PAN card. Will give information about Aadhaar number. In other words, such persons will have to mandatorily link their Aadhaar and PAN with late fee payment by 30.06.2023. But there are some people who are exempted from this requirement.

Aadhaar-PAN linking is not required for those who:

live in Assam, Jammu and Kashmir and Meghalaya;
is a non-resident as per the Income Tax Act, 1961;
has been of the age of eighty years or more at any time during the previous year; or
are not citizens of India.

What will happen if Aadhaar is not linked?

According to the Income Tax Act, 1961, those PAN cardholders who do not come under the exemption category, if they do not link their PAN with Aadhaar by June 30, 2023, their PAN card will become inactive from April 1, 2023.

(i) He will not be able to file ITR using his inactive PAN.

(ii) Pending returns cannot be processed.

(iii) Refunds which are also pending will not be issued on this PAN. Pending processing cannot be completed once the PAN becomes inactive.

(iv) If PAN has become inactive then tax will also be deducted at higher rate.

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One of the same is the linking of Aadhaar card with PAN card. In fact, information has been given by the Central Board of Direct Taxes (CBDT) that if the PAN holders do not follow the instructions given by the government till March 31, then their business and tax related facilities will stop working. Simply put, their account will be banned.

Explain that out of total 61 crore Permanent Account Number (PAN), about 48 crore have been linked to Unique Identification Number Aadhaar so far. There are 13 crore people whose PAN-Aadhaar has not yet been linked. Now the government has rung the alarm bell for these people and has also fixed the last date for linking.

The chance is till 31 March

People who do not do this till March 31, will not be able to get benefits in business and tax related activities. Central Board of Direct Taxes (CBDT) Chairperson Nitin Gupta said that several crore PANs are yet to be linked with Aadhaar, but this work is expected to be completed by the March 31 deadline. The government has made it mandatory to link PAN with Aadhaar.

For this, setting a deadline of 31 March 2023, it has been said that individual PANs not linked to Aadhaar will be declared inactive after this date. Along with this, the government has said that from the present time till March 31, a fee of Rs 1,000 will have to be paid for linking PAN with Aadhaar.

Card will be deactivated if not linked

The CBDT chief said that several awareness campaigns have been conducted regarding linking of PAN with Aadhaar and we have extended this deadline several times. If PAN is not linked with Aadhaar by the due date, the holder will not be able to get tax benefits as his PAN itself will not be valid after March. The CBDT, in a circular issued last year, has made it clear that once PAN becomes inoperative, the person concerned will face all the consequences prescribed under the Income Tax Act.

This includes situations like non-filing of income tax returns and non-processing of pending returns. Along with this, he said that the budget announcement of making PAN a common identifier will be beneficial for the business world. Finance Minister Nirmala Sitharaman has announced in the budget that PAN will now be used by business establishments as a common identifier in the digital systems of government agencies.

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However, most taxpayers make use of Section 80C of the Income Tax Act for tax-savings. Under this, there are about a dozen such options, in which tax-savings can be done by investing. These include PPF, NPS, ELSS, Life Insurance Policies etc. But, we are telling you about such ways to save tax, which do not require any kind of investment to take advantage of them.

Tuition fees

Individual taxpayers can claim deduction on tuition fees under section 80C of the Income Tax Act. This facility is not available to HUF. You can claim this deduction on the tuition fees of two children. Tuition fee refers to the total tuition fee to be paid in a financial year.

If you do a job, you have to submit the investment proof to the finance department of your company by the first or second week of January every year. You can take the Tuition Fee Payment Certificate from the school and give it at your office. This will result in good tax-savings for you.

Education scholarship

The scholarship amount received for education is exempt from tax under section 10(16) of the Income Tax Act. Tax experts say that the scholarship received from the government or any trust is exempt from tax.

Contribution to Political Party/Charitable Organizations

If you make any kind of contribution to any political party or charitable organization, then you can claim tax deduction on it. This deduction facility is available under section 80GGC of the Income Tax Act.

Education loan

If a student has taken an education loan, then a deduction can be claimed on the interest amount. This deduction can be claimed under section 80E of Income Tax. You just have to keep in mind that this deduction is available only on the interest part of the EMI. Deduction cannot be claimed on principal.

Rent paid

If you are employed and do not get House Rent Allowance (HRA), you can claim a deduction on the rent you pay. This deduction is available under section 80GG of the Income Tax Act. Self-employed individuals can also claim this deduction. To take advantage of this deduction, it is necessary to submit Form

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Now in the past, the Income Tax Department has again issued a tweet saying that those who have not linked their PAN card with Aadhaar should not delay in doing so. The Income Tax Department has said through a tweet that PAN card holders who have not linked their PAN with Aadhaar must do so by March 31, 2023, otherwise their PAN card will become inactive.

In its tweet, the Income Tax Department has said that “According to the Income Tax Act 1961, all PAN card holders who do not fall under the category of exemption should link their PAN with Aadhaar by 31-03-2023. April 1, 2023 PANs not linked with Aadhaar will become inactive.

This is an urgent notice, so don’t delay, link today! ,

As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before 31.3.2023.
From 1.04.2023, the unlinked PAN shall become inoperative.

Urgent Notice. Don’t delay, link it today! pic.twitter.com/h7T6AAeDnc

— Income Tax India (@IncomeTaxIndia) January 17, 2023

 Please tell that this tweet has also been retweeted by the Finance Ministry.

At present, you can link PAN with Aadhaar by paying penalty. Significantly, the Income Tax Department has asked people to link PAN and Aadhaar by March 31, 2022, but for this you will have to pay a penalty. You will have to pay a penalty of Rs 1000 for linking PAN and Aadhaar between July 1, 2022 and March 2023. If till then you do not link both then this PAN card will be invalid or cancelled.

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Finance Minister Nirmala Sitharaman has shared many ways to save tax, through which you can save lakhs of rupees. Let us tell you how you can save tax up to Rs 8 lakh.

Apart from this, you will also get the benefit of exemption on home loan under section 24 (b) of the Income Tax Act . In this, you will get the benefit of exemption only on the interest paid on your behalf. You can claim tax exemption on interest up to Rs 2 lakh in this

Discount will be available on auto loan If you buy any electric vehicle under section 80EEB of the Income Tax Act and you have taken this vehicle on loan, then you will get a discount of up to Rs 1.5 lakh on it.

Exemption will be available in section 80C.

You can take advantage of the exemption of up to Rs 1.5 lakh under section 80C. Through this, you can claim exemption by investing money in many schemes including LIC policy, PPF, EPF, NSC.

Apart from all these, you will also get the benefit of exemption under 80C on the principal amount of the home loan. You cannot get more than Rs 1.5 lakh discount in this. Even if you have claimed any deduction earlier under 80C, you will get the maximum benefit of only 1.5 lakh.

You will get exemption from health insurance You can also save tax through health insurance. You can claim premium under section 80D. You get a discount of up to Rs 25,000 in this. If you have got your parents’ health insurance done, then you will get a full tax exemption of Rs 50,000.

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Income up to Rs 2.5 lakh is tax free

Tell me, at present your income up to Rs 2.5 lakh is tax free, but even after all this, you will not have to pay a single tax even on salary up to Rs 10.5 lakh.

Standard deduction of Rs 50,000 is available

if the annual income of any person is Rs 10 lakh 50,000, then you get a straight standard deduction of Rs 50,000. In this situation, your taxable income becomes Rs 10 lakh. According to media reports, the government may increase the standard deduction from Rs 50,000 to Rs 70,000 in this budget.

1.5 lakh exemption will be available in 80C.

Apart from all this, you can take advantage of full tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. It comes with many facilities including LIC, PPF. Accordingly, your taxable income remains only Rs.8,50,000.

You will get a discount of 50,000 here, apart from this, you can also save tax through NPS under Section 80CCD of Income Tax Act 1961. In this, you will get a rebate of up to Rs 50,000, which means your taxable income will now be only Rs 8 lakh.

Here you will get a discount of 2 lakhs.

If you have bought any house or have any home loan in your name, then you also get the benefit of income tax exemption. Under Income Tax Act 24B, you get a full exemption of up to 2 lakhs. So according to this your taxable income will remain only Rs.6 lakh.

You can get a discount of Rs 75,000 by getting insurance done, apart from
this you can claim Rs 75,000 under Section 80D of Income Tax. You can also take insurance for your family. By doing this, your taxable income will be reduced to only Rs 5 lakh 25 thousand.

Apart from all this, if you are associated with any organization, you can also get tax exemption of up to Rs 25,000 through donation . In this you can claim under section 80G of tax. After taking advantage of this exemption, your taxable income remains only Rs 5 lakh, on which you do not have to pay any tax.

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Whether this will happen or not will be known only on February 1, but before that the Government of India has given a big relief to the taxpayers. On behalf of Finance Minister Nirmala Sitharaman, this relief has been given to senior citizens above 75 years.

The Finance Ministry has tweeted from its official Twitter handle that citizens above 75 years of age who have only pension and bank interest as their source of income do not need to file income tax returns. This is expected to bring great relief to senior citizens. Actually, it becomes difficult for them to file taxes and returns. In view of this, this step of the government was very important.

Added new section

The government has added a new section in the Income Tax Act to give this exemption. In order to give relief to citizens above 75 years of age in income tax return, the Income Tax 1961 rule has been amended and a new section, Section 194-P, has been added to it. Banks have been informed about this change made by the government.

Finance Minister had announced

Finance Minister Nirmala Sitharaman had announced this last year. The Central Board of Direct Taxes (CBDT) has said that a notification regarding the new rules has been issued. Necessary changes have been made in Rule 31, Rule 31A, Form 16 and 24Q of Income Tax. As per the changes, it is not necessary for citizens above 75 years of age to file ITR. The bank in which he will have his account, that bank will automatically deduct the tax on income and file the return. For this, citizens will have to fill 12 BBA forms and submit them to their bank.

Who is getting tax exemption

now? At present, the government gives tax exemption on annual income up to Rs 2.5 lakh. However, it is also necessary for them to file income tax returns. Through this, he can claim refund on the TDS taken from him. Please tell that tax is definitely made on the income of 2.5 to 5 lakhs, but it is so less that it gets adjusted within the rebate itself.

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In a tweet on Thursday, the Finance Ministry told about its budget promise that senior citizens above 75 years of age, who have only bank pension account and interest on bank account as their only source of income, now need to file ITR. No need. For this, a new section Section 194P has been added in the Income Tax Act, 1961. This section is applicable from April, 2021. Some rules have been amended regarding this and banks have been informed about it.

According to the information released by the Central Board of Direct Taxes, this section has been operationalized. For this, a notification has been issued regarding the related forms and conditions. Along with this, necessary amendments have also been made in Rule 31, Rule 31A, Form 16 and 24Q.

Relief for Senior Citizens!

Section 194P inserted in IT Act, 1961 exempting senior citizens above 75 years of age, having only pension & interest income, from filing ITR. Specified banks & relevant forms notified.#PromisesDelivered pic.twitter.com/KHQOIyQabr

— Ministry of Finance (@FinMinIndia) January 5, 2023

Finance Minister Nirmala Sitharaman had announced this in her budget address saying that “Now that we are in the 75th year of Independence Day of our country, we will continue our journey with more enthusiasm. We are more than 75 years old in the country.” Will reduce the burden of tax compliance on senior citizens of India. For such senior citizens whose income is from pension and interest, we propose to exempt them from filing income tax returns. The bank in which they have an account, that bank The amount of tax that will be made on the income, he will deduct the tax.”

In fact, this rule has already been implemented that senior citizens above 75 years of age receiving pension and interest income on the same bank account are exempted from not filing ITR. If his income is taxable, then the bank can deduct tax from his account. Regarding this, it has been said that section 194P is now operationalized and banks have been notified about the changes in their declaration form and other related forms.

Please tell here that there will be no change in the rules of common taxpayer and their ITR form.

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The Central Board of Direct Taxes (CBDT) has issued a circular regarding TDS deduction from salary. tax) will have to be deducted. According to news agency IANS, the circular states that tax should be deducted at the average rate calculated on the basis of the rates applicable for the current financial year on the income (income) from the estimated salary of the recipient for that year.

Circular explains the liability of employers

According to the news, the CBDT had issued the circular last week. It explains the liability of employers with respect to deduction of tax at source from salary under section 192 of the Income Tax Act, 1961 for the financial year 2022-23. As per section 192, the person responsible for making the payment of salary income must furnish to the payee a statement giving true and complete details of the perquisite or benefit in lieu of salary provided to him and the value thereof.

How much average TDS will have to be deposited every month

For example, if someone’s annual income from salary is Rs.6,00,000, then the tax on the total salary including cess, according to the normal rate, becomes Rs.33,800. Calculating tax on Rs 50,000 as per the average tax rate of 5.63 percent, it becomes Rs 2815. That is, TDS (TDS) of Rs 235 will have to be deducted every month on this amount.

Current income tax slabs

Currently, there is no income tax on annual income up to Rs 2.50 lakh. 5 percent income tax has to be paid on income from Rs 2.50 lakh to Rs 5 lakh. 10 percent income tax is applicable on Rs 5 lakh to Rs 7.50 lakh. 15 per cent on annual income from Rs 7,50,001 to Rs 10 lakh, 20 per cent on annual income from Rs 10,00,001 to Rs 12.50 lakh, 25 per cent on annual income from Rs 12,50,001 to Rs 15 lakh and above Rs 15 lakh 30 percent income tax has to be paid on the income of Rs.

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The CBDT has decriminalized offenses punishable under section 276 of the Act by making them compoundable, which is one of the major changes in the guidelines.

If a law is made compoundable, then whoever violates it can do so while avoiding jail time by paying a fine. Earlier, Section 276 of the Income Tax Act provided for rigorous imprisonment of up to two years for the taxpayer.

The I-T department said in a statement that the eligibility for compounding of cases has been relaxed, making the case of an applicant who has been sentenced to imprisonment for a term of not less than 2 years, which is previously non-compoundable. Yes, now it has been made compoundable. The discretion available with the competent authority has also been suitably restricted?

Prosecution proceedings under section 276 may be instituted if the taxpayer fraudulently removes, conceals, transfers, or transfers any property or interest to any person, for the purpose of recovery of tax. Distributes with the intention of preventing engagement.

Compounding allows a person to evade prosecution by admitting his guilt and paying a specified fee.

As per the revised guidelines dated September 16, the time limit for acceptance of compounding applications has been reduced to 36 months from the earlier limit of 24 months from the date of filing of complaint.

It said that several provisions of the Act have also introduced specific upper limits for compounding charges covering defaults.

CBDT said that the additional compounding charges in the nature of penal interest of 2 per cent per month for up to 3 months and 3 per cent per month over 3 months have been reduced to 1 per cent and 2 per cent respectively.

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Actually, the department has given two main options to verify ITR. Firstly, you can do e-verification through online. This work can be done through bank account, demat account or Aadhaar-PAN. Another option is to send the ITR-V through post to the Income Tax Department Headquarters in Bangalore. The most important thing is that the department has given only 30 days for verification in both the ways. Even if you have to send ITR-V by post, it has to be delivered to the specified address within 30 days.

If the ITR is not verified, then it should not be considered complete just by filling the ITR. Unless you e-verify your income tax return, it is considered incomplete. This simply means that if you do not get your return verified within the stipulated time, then it will become invalid and it will not be considered as filled.

Sachin Srivastava, expert in tax matters, says that if you have e-verification of ITR done after the lapse of time or send the hard copy of ITR-V to the office of the department, then it will be considered after the late or due date and the department will do such e-verification. Verification can be rejected.

How to send ITR by post

If you want to send hard copy of your income tax return to the department office instead of e-verification, then send it through speed post only. If the taxpayer has sent his ITR-V through any other mode i.e. through courier or normal post, then it will not be valid. Completely filled ITR-V can be sent by the taxpayer to the Centralized Processing Centre, Income Tax Department, Bangalore 560500, Karnataka.

Taxpayers need to keep in mind that from the date on which you have filed your ITR, the department will also count 30 days for e-verification from the same day. Even if you are sending ITR-V through post, 30 days will be added from the date of filing ITR. The taxpayer fills his return and informs the Income Tax Department about the income earned in the relevant financial year and the tax on it or the tax paid.

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The deadline for filing income tax returns for the financial year 2021-22 and assessment year 2022-23 is over on July 31, 2022. After the deadline is over, whoever files the income tax return will have to pay a penalty. Although there are many categories of people who have not filed their returns yet, they need not panic as they will not have to pay any penalty even after the deadline for filing income tax returns is over.

Who will not have to pay penalty

According to the Income Tax Act, every person filing income tax return is not required to pay penalty even after the deadline is over. If a person’s annual income is less than the basic tax exemption limit, then they will not have to pay any penalty. According to the new tax regime, the basic tax exemption limit is Rs 2.50 lakh per annum. That is, under the new system of tax, those who are filing income tax returns after the deadline is over, they will not have to pay any penalty.

If someone is filing returns under the old tax regime, then the basic income tax exemption limit is determined on the basis of age. If the person is less than 60 years of age and has an annual income of less than Rs 2.50 lakh, then penalty will not have to be paid. Senior citizens in the age group of 60 to 80 years have an annual income of up to Rs 3 lakh, then they will not have to pay any penalty. And super senior citizens above 80 years whose income is less than Rs 5 lakh per annum will not have to pay penalty.

However, even if less than the limit of annual tax exemption but fulfill these conditions, then there will be penalty for filing income tax return after the deadline for assessment year 2022-23.

First – Those who have deposited more than Rs 1 crore in more than one current account in a bank or cooperative bank.

Second – 2 lakh rupees have been spent on foreign travel of himself or someone else.

Third – Those who have paid a bill of more than one lakh rupees in the head of electricity bill in a year.

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The department sends the Income Tax Intimation Notice to the registered email id of the tax filer under Section 143(1) of the Income Tax Act 1961. The department also sends an SMS alert to the tax filers informing them that the intimation notice has been sent to them on their registered email id.

The deadline for issuance of income tax notice notices has been revised to three months with effect from April 1, 2021. As per the tax rules, the intimation notice needs to be sent to the department within 9 months from the end of the financial year in which the ITR is filed. For example, if someone has just verified his ITR, then the last date for receipt of this notice is 31st December 2023 (nine months from the last date of the current financial year i.e. 31st March, 2023).

However, these days the tax department sends information notices very quickly. Sometimes you get the notice even a few hours after filing the ITR. The information notice provides details as to whether the income tax calculations given by the taxpayer in the ITR match the calculations made on the basis of the information provided by the department. The department investigates various errors. After this process the information is sent.

Taxpayers should read the notice notice carefully

According to tax experts, taxpayers should read the intimation notice carefully. The process of ITR done by the Income Tax Department cannot be final, as the department conducts a prima facie inquiry only after the ITR is verified by the taxpayer. The department may send notice under any other section for further information in future.

What’s in a tax information notice?

Taxpayers should check information notices carefully. This includes income statement, deductions claimed, etc. In some cases the information notice may demand additional tax if the taxpayer has failed to report any income in ITR or has wrongly claimed deduction. If the taxpayer has paid additional taxes, the intimation notice may mention the refund payable to the taxpayer.

Income Tax Notice Letter Password

The password to open the Income Tax Intimation Sheet is your PAN number in lowercase followed by your date of birth in DDMMYY format.

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The last date for filing income tax returns for the financial year 2021-22 is approaching and many taxpayers have not filed their returns because the deadline will get extended. If you are also sitting in the same expectation that the date of filing the return will be extended, then leave it and
file your return soon.

In fact, the Income Tax Act allows prosecution of taxpayers who do not file returns and even send them to jail. This year the last date for filing returns has been fixed as July 31 and the Income Tax Department is continuously advising taxpayers to file their returns before the last date. If you fail to file your return within the stipulated time, you may also have to pay a late fee of up to Rs 5,000.

What to say, expert tax and investment advisor Balwant Jain explains that if an individual taxpayer does not file his ITR within the stipulated time, then he gets the freedom to file the return later, but for this, he has to deposit a lit fee of up to Rs 5,000. Will have. If the annual taxable income of the taxpayer is more than Rs 5 lakh. At the same time, if the taxable income is less than 5 lakhs, a leet fee of Rs 1,000 will have to be paid.

Jain said that a taxpayer can file his income tax return only once in a financial year and can also amend it once in case of any omission or mistake. If a taxpayer files his return with late fee after the stipulated time, then he will not be given a chance to amend his ITR.

If a person is unable to file his return within the stipulated time, then the Income Tax Department can also impose a fine ranging from 50 percent to 200 percent of his total outstanding tax . Not only this, notice will also be issued to him by the department and interest will also be charged on a daily basis till the ITR is filed from the end of the return deadline. Not only this, the department will also have the right to prosecute the taxpayer.

Provision of 7 years in jail

The Income Tax Department can also send taxpayers who do not file returns to jail. Under this, the taxpayer can be imprisoned from 3 years to 7 years. However, it is not necessary that the department should initiate prosecution against all the taxpayers who have not filed the return, but in cases where the outstanding tax is more than Rs 10 thousand, such action can be taken.

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The process of filing income tax return for the financial year 2021-22 is in full swing and its last date is also going to end at the end of this month. Meanwhile, the discussion is also arising whether it is also necessary to fill the ITR of the deceased person.

In this regard, Income Tax Expert Balwant Jain says that if the deceased person comes under the tax net, then it will be necessary to fill his ITR. However, for this it is necessary to be the legal heir of the deceased who has been authorized by a court to do this work. Also, it will be necessary to enter the PAN card details of both the deceased and his legal heirs on the e-filing portal. If the PAN of the deceased person is not on the Income Tax portal, then the heir can register his PAN in its place.

Process of Registration on the Portal as Legal Heir –

First of all, go to the e-filing portal of the Income Tax Department and log in with the documents of the legal heir.
On opening the portal, go to Authorized Partners and select Register as Representative and click on Get Started.
After this, click on Create New Request and fill all the required information.
For registration, the death certificate, PAN card of the deceased person, PAN card of the heir, certificate made as heir and copy of the court order in this regard will be uploaded.
After this, we will verify the request by clicking on the Proceed button.
Finally, after pressing the submit request button, your registration will be done, whose information will be received by the Income Tax Department.

What to do Next
Once the registration is complete with all the documents, the e-filing administration of Income Tax will verify it and if the request is approved, then the legal heir will get all the rights related to ITR in place of the deceased. But, if the request is rejected, then the concerned person will be informed by the department along with the reason. After this, if the heirs want, they can take necessary steps on it.

After the completion of the verification and approval, the heir can file the ITR of the deceased person just like a normal taxpayer. This ITR can also be verified in many ways like Aadhaar OTP, Net Banking. Keep in mind that it is necessary to calculate the total income of the deceased person before filing the ITR. It should be from the beginning of the respective financial year till the date of death of the taxpayer. If any income occurs after the death of the taxpayer, then it will be considered as part of the income of the heir and the heir will have to give this information in his income tax return.

Income tax law says that if tax is due on a deceased person, then it will have to be paid by the legal heir . However, it is clear in this that if the heir receives less property than the outstanding tax, then he will be liable to pay tax only as much as the property. For example, if a person has received shares worth Rs 8 lakh from his father as an heir and his father had tax dues of Rs 9.5 lakh, then the heir will have to pay only Rs 8 lakh as tax.

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