According to sources, the IT department is seeking details of household expenses. Some taxpayers are receiving notices from the IT department. They have been asked for information regarding hair cuts in salons and restaurants. Ration, electricity and gas bills have also been sought.

According to information received from sources, the IT department has also asked for details of cosmetics and perfumes from such people. IT sources say that these details have been asked in the faceless assessment. Such notices can be sent in cases of high income group. IT officials ask for such information in special circumstances. These details are asked in case of mismatch between income and expenditure in ITR. It is difficult to comment on the notice without DIN, PAN, AY.

Through this exercise, the IT department aims to find out whether these people are hiding their real income or making large transactions in cash, leading to tax evasion. This step by the Income Tax department is part of the government’s plan to use data analytics to curb tax evasion.

Sources in the IT department say that these notices have not been sent to everyone. It only includes high-income earners, who show a large income in their IT returns, but there is a huge gap between their lifestyle and the money withdrawn from the bank. In simple words, if someone lives a luxurious life, eats in expensive restaurants, wears expensive clothes but withdraws less money from the bank, then the department suspects that he has some other source of income, which he has hidden.

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Actually, the government can take steps to cut income tax rates due to concerns related to the decrease in consumption in the economy. According to an exclusive report by CNBC, sources said that the government can take special steps in this budget to increase consumption. These include the option of cutting income tax rates and increasing the limit of standard deduction.

Will the government give relief on income tax

If sources are to be believed, the government can increase the limit of income tax exemption up to Rs 50,000 in the budget. At the same time, the limit of standard deduction can be increased to Rs 1 lakh. Currently, this limit is Rs 50,000 in the old tax regime, while in the new tax regime this limit is Rs 75,000. In such a situation, the government can increase it by Rs 25,000 more. Currently, the tax rate on annual income of Rs 12 to 15 lakh is 20 percent.

Taxpayers hope for relief

Taxpayers and experts have high expectations from the budget for the financial year 2025. In fact, this time the government is expected to take several important steps to amend the income tax slab, increase the investment limit and encourage startups. Especially, amid rising inflation and expenses, the demand to make tax rules more simple and flexible to provide relief to the middle class and senior citizens is gaining momentum.

As per the current tax slab, there is no tax on annual income up to ₹2.50 lakh, while 5% tax is levied on income from ₹2.5 lakh to ₹5 lakh, 20% tax is levied on income from ₹5 lakh to ₹10 lakh, and 30% tax is levied on income above ₹10 lakh.

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If you plan properly and use all the exemptions and deductions properly, then you can surely save tax on a salary of up to Rs 12 lakh. For this, you will also have to keep your salary structure such that the tax scope is not high. Usually, at the beginning of the year, there is an option to change the salary structure. You can decide how much money you want in 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.

Take full advantage of HRA

Apart from this, there is also an option of HRA for tax saving. For HRA, you have to calculate 3 numbers and whatever is the lowest among them, you will get tax exemption on that.

1. The HRA given by the company in the salary can be claimed.
2. You can claim up to 50% of the basic salary in metro cities and 40% of the basic salary in non-metro cities as HRA.
3. You can claim HRA up to the amount that remains after deducting 10% of the basic salary from your total rent.

If your annual salary is Rs 12 lakh, then you should structure your salary in such a way that HRA is Rs 3.60 lakh, LTA is Rs 10,000 and telephone bill is Rs 6,000. You will get deduction on gross salary in this way-

• Standard deduction under section 16 – Rs 50,000
• Exemption from professional tax – Rs 2,500
• HRA under section 10 (13A) – Rs 3.60 lakh
• LTA under section 10(5) – Rs 10,000
• If you add all the above items, your taxable salary will now be Rs 7 lakh 71 thousand 500 (7,71,500).

The further calculation will be like this:

• Under Section 80C (LIC, PF, PPF, children’s tuition fees, etc.) – Rs 1.50 lakh
• National Pension Scheme (NPS) under Tier-1 under section 80CCD – Rs 50,000
• Health insurance for self, wife and children under 80D – Rs 25,000
• Deduction on health policy for parents (senior citizens) – Rs 50,000

Now the taxable salary will be less than Rs 5 lakh. If the taxable salary is less than Rs 5 lakh, then rebate and basic exemption will be available under section 87A. In this way your tax will become zero. It is worth noting that this formula will work on the old tax regime.

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7th January

This is the due date for deposit of tax deducted. However, the tax department said that all money deducted/collected by government offices will be paid into the central government account on the same day the tax is paid without producing the income tax challan.

This is also the deadline to deposit TDS for the period October 2023 to December 2023, when quarterly deposit of TDS is allowed under section 192, 194 A, 194 D or 194 H of assessment.

14 January

This is the due date for issuance of TDS certificate for tax deducted under section 194-IA, 194-IB, 194M and 194S in November 2023.

15 January

This is the due date of submission of Form 24G to the government office where TDS/TCS payment for December 2023 has been made without presenting the challan. TCS quarterly information for the December 2023 quarter will also have to be submitted by this date. This is also the deadline to submit Form 15G/15H declarations received during the December 2023 quarter.

Also, the statement under Rule 114AAB for December 2023 quarter is presented in Form No. 49BA.

30 January

Quarterly TCS certificate in respect of December 2023 quarter should be submitted by January 30.

Challan statement in respect of tax deducted under sections 194-IA, 194-IB, 194M and 194S is required to be submitted in December 2023.

Quarterly information of TDS for December 2023 quarter also has to be submitted by January 30.

31 January

In respect of the December 2023 quarter, the quarterly return of TCS of the banking company on interest on FD has to be filed by January 31. Information by sovereign wealth funds and pension funds regarding investments made in India for the quarter ending December 2023 is also to be provided by January 31.

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