The last date of this scheme was fixed as 31 December, which has now been extended to 31 January. This means that for one more month taxpayers can settle their disputed tax with less amount. Let us tell you that this scheme was announced by the Finance Minister in the first budget of Modi 3.0. Let us know about it in detail…

Deadline extended for one month

The Income Tax Department had started the Vivaad se Vishwas scheme to settle the disputed tax issues of taxpayers, in which taxpayers troubled by income tax disputes can get it done by paying a small amount. The deadline of this scheme was also going to end on 31 December 2024 i.e. today. But on Monday itself, the Income Tax Department issued a notification in this regard and announced to extend its deadline for 1 month. If you want to settle the tax dispute by taking advantage of this scheme, then you now have time till 31 January 2025.

Otherwise, you will have to pay 110% payment

The Central Direct Tax Commission (CBDT) has issued a notification saying that now the benefit of Vivaad se Vishwas scheme will be available next year as well and disputed tax settlements can be done till January 31. It has been clearly stated that if taxpayers are unable to settle their disputes by the new deadline, then in such a situation, 110% payment of the disputed tax demand will have to be made on the declarations made on or after February 1, 2025.

These taxpayers will get the benefit of the scheme

Vivad Se Vishwas Yojna will be available to such taxpayers whose petition has been filed in relation to the disputed tax related matter. Taxpayers who have filed a petition in the Supreme Court, High Court or Income Tax Appellate Tribunal till July 22, 2024, or have been appealed by the tax officers, then they can get the benefit of settling the tax by paying a lesser amount under this scheme.

The government hopes that this scheme will resolve about 2.7 crore direct tax demands, the total amount of which will be about Rs 35 lakh crore. Four types of forms have been issued under this scheme of the Income Tax Department, which was started to settle these cases quickly.

These four forms have been issued

• Form 1 – In this you will file the declaration and give the undertaking.
• Form 2 – This will be for the certificate to be issued by the authority.
• Form 3 – Under this form, the declarant will give information about the payment.
• Form 4 – The authority will give information about the full and final settlement of the tax arrears.

Form 1 and 3 are the most important.

In the Vivaad se Vishwas Sarkari scheme, Form-1 has to be filled separately for every dispute related to income tax. Whereas in Form-3, you will have to share the payment information. In this, you will have to give it to the authority along with the proof of appeal, objection, application, writ petition or withdrawal of the claim. Form 1 and 3 can be submitted electronically by the taxpayers. These forms will be made available on the e-filing portal of the Income Tax Department i.e. www.incometax.gov.in.

What is direct and indirect tax?

In India, income tax comes under direct tax. People who fall under the prescribed range for this have to pay tax according to their income bracket and file income tax return (ITR). Indirect tax includes cases of goods and services tax i.e. GST. Whatever goods you buy or use any service like telecom, you have to pay GST on it.

Related Articles:-

• OTS Scheme: These Electricity Consumers will not get the Benefit of OTS scheme – uppcl.org
• LPG Cylinder Price: Rs 250 Cheap Composite LPG Gas Cylinder – Check Details
• UPI Payment System: UPI rules to change from January 1, money transfer limit will be doubled
• Schools Closed: All schools suddenly closed before winter vacations, this is the reason…
• LPG, PF, UPI and… Big changes are going to be implemented from January 1, know in detail

The post Income Tax Relief….Income Tax Dept extends Vivad Se Vishwas scheme deadline to January 31, 2025 first appeared on Rightsofemployees.com.

However, the government has not taken any decision in this regard yet. The government can announce this in the budget to be presented on February 1.

The government can also give income tax exemption to the middle class. However, no decision has been taken in this regard yet. It is believed that the government can make an announcement in this regard in the general budget to be presented on February 1. This information has been given by Economic Times quoting Reuters. It has been told that the government can also give income tax exemption to those earning Rs 15 lakh annually.

The government wants to give tax relief to the middle class. The government plans to promote consumption due to the recession. Due to these reasons, the government is considering giving income tax exemption to the middle class earning up to Rs 15 lakh. If this happens, then millions of taxpayers will benefit from this.

How much will the deduction be?

No information has been revealed yet about how much income tax exemption will be given to those earning up to Rs 15 lakh annually. According to sources, no decision has been taken yet on the size of any deduction. Whatever decision will be taken in this regard will be announced in the general budget to be presented on February 1.

Now we have to pay a lot of tax

Currently, there are two systems to choose from for income tax. The first is the old one and the second is the new one. The new system started in the year 2020. There is no exemption on facilities like HRA in this. In the new system, 5 to 20 percent tax is levied on income from Rs 3 lakh to Rs 15 lakh annually. Income tax has to be paid at the rate of 30 percent on income more than this.

A good move for the economy too!

If the government cuts income tax for the middle class, then such people will get more money in their hands. This money can help in accelerating the country’s economy. In fact, the country’s GDP in the September quarter has been much lower than in the last 7 quarters. If people get more money in their hands, they will be able to spend more. This will improve the country’s economy.

Why favouritism towards the middle class?

The government is currently facing a lot of criticism from the middle class. The middle class is the worst hit by inflation. The middle class is not getting any special relief from the government. The increase in salary is decreasing as compared to inflation.

Due to inflation, the demand for everything from soap and shampoo to cars and two-wheelers has been low. The middle class is the biggest customer of these things. In such a situation, the government wants to please the middle class by giving income tax exemption.

Related Articles:-

• Budget 2025: Government may Increase Section 80C Limit More Tax Benefit to Taxpayers
• Bank Holidays in January 2025: Banks will remain closed for 15 days in January, check RBI’s list of holidays
• LPG Price Changes : Key Financial Changes from January 1, 2025
• Govt Declared Holiday in banks, schools, govt offices on the demise of former Prime Minister Manmohan Singh
• Post Office’s New Rules: Government notified new rules under post office act. Details Here

The post Income Tax Relief: Government is Considering THIS Exemption and May announce it in Budget first appeared on Rightsofemployees.com.

Finance Minister Nirmala Sitharaman has started discussions with stakeholders regarding this. It is expected that senior citizens and low-income taxpayers may get good news in the next budget.

Taxpayers with low income can get big relief

Let us tell you that in the first budget of the third term of the Modi government, which was presented in July this year, some relief was given to the taxpayers. It is believed that in the next budget to be presented on February 1, 2025, low-income taxpayers may get a big relief.

Under the new tax regime, taxpayers falling in the tax slab of Rs 3 lakh to Rs 7 lakh can get the benefit of tax reduction. According to a report by ET Now, the government can increase the exemption limit to more than Rs 3 lakh under the new tax regime.

No significant change is expected for those in higher tax slabs

The common man’s main focus in the budget is that his income should come under the tax exemption limit or he should have to pay less tax on his income. That means the next budget can bring a big relief for the lower income group. However, no special change is expected for those in the higher tax slab.

Let us tell you that in the budget presented in July, Finance Minister Nirmala Sitharaman had given relief to the taxpayers under the new tax regime for the financial year 2024-25. She had made the annual income of Rs 7 lakh tax free by changing the tax slab. This means that if your annual income is up to Rs 7 lakh, then you will not have to pay any tax on it. In the budget presented in July, the Standard Deduction Limit was also increased from Rs 50,000 to Rs 75,000.

Know what CII suggested

Industry body CII (Confederation of Indian Industry) says that the government should stick to the fiscal deficit targets of 4.9% of GDP for the year 2024-25 and 4.5% for 2025-26. Let us tell you that CII works to promote India’s industry growth. He says that more aggressive targets can have a bad effect on India’s economic growth. CII Director General Chandrajit Banerjee said that India is moving ahead rapidly amid a slow global economy. Fiscal management is very important to continue moving forward in this way and for macroeconomic stability.

Related Articles:-

Swiggy launches ‘One BLCK’ premium service, customers will get more facilities for Rs 299

Post Office’s great scheme for the Senior Citizen, invest once and get good returns

PPF scheme calculation: You can get more than 32 lakhs rupees by just investing 10 thousand – Check Details

The post Income tax relief in Budget 2025: Low income taxpayers can get big relief in the upcoming budget. know details first appeared on Rightsofemployees.com.

X users had posted that “I humbly request you to consider giving some relief to the middle class. I understand the challenges involved, but this is just a heartfelt request.”

Modi government pays attention to the concerns of the people: Nirmala Sitharaman
Reacting to this, Nirmala Sitharaman said that the government led by Prime Minister Narendra Modi listens to the voices of the people and gives importance to their suggestions. Describing the user’s suggestions as valuable, she said that the government seriously considers the concerns of the people.

Nirmala Sitharaman replied to the users on Instagram and said, “Prime Minister Narendra Modi’s government is a responsible government. It listens to the voice of the people and pays attention to it. Thank you once again for your understanding. Your suggestion is valuable. I understand your concern and respect your point of view.”

Tax burden on middle class has decreased in last 10 years

During the 10-year tenure of the government led by Prime Minister Narendra Modi, the tax burden on the middle class i.e. individuals earning less than Rs 20 lakh per annum has decreased. According to government data, the percentage of income tax collection from taxpayers earning less than Rs 10 lakh has come down to 6.22 percent in 2024 from 10.17 percent in 2014.

Thank you for your kind words and your understanding. I recognise and appreciate your concern.
PM @narendramodi ‘s government is a responsive government. Listens and attends to people’s voices. Thanks once again for your understanding. Your input is valuable. https://t.co/0C2wzaQtYx

— Nirmala Sitharaman (@nsitharaman) November 17, 2024

Government’s stance on giving tax exemption

It is clear from the statement of Finance Minister Nirmala Sitharaman that the government is aware of the problems of the middle class. However, the government has not yet taken any concrete decision on this issue. It is expected that in the upcoming budget, the government will consider giving some relief to the middle class.

At the same time, experts believe that the government should take some steps to provide relief to the middle class. This may include changes in the income tax slab, increase in standard deduction and reduction in GST on some essential commodities.

The post FM Nirmala Sitharaman responds to X user seeking tax relief for middle class first appeared on Rightsofemployees.com.