The last date for filing Income Tax Return (ITR) has been extended recently. Now you can file ITR till 15th September, which was earlier required to be done by 31st July. However, employed people are still not able to file income tax return, because they have not received Form-16. Now a big question here is that when will Form-16 come, what are its rules? Let’s know.

What is the rule for issuing Form-16?

These days, employees in different companies have started getting Form-16. According to the rules of Income Tax Act, Form-16 has to be issued within 15 days after filing TDS return by the deductor. Here, let us tell you that the last date for filing TDS for the deductor is 31st May. In this way, employees will get Form-16 from all the companies between 1st June to 15th June. If even after this you do not get Form-16, then you must talk to your HR for this.

What is Form-16?

Form-16 shows how much tax is levied on you and which deductions you have got. It contains information about the salary you received, the tax levied on it, the source of your income and all kinds of deductions. The good thing is that now all the information of Form-16 is already filled in the ITR form, you just have to check it and e-verify it after filing the ITR. Meaning you can file your ITR in hardly 2-3 minutes.

Form-16 has two parts

Form 16 has two parts. One is Part A and the other is Part B. Part A contains the company’s TAN, company’s PAN, employee’s PAN, address, assessment year, period of employment. Apart from this, details of TDS deposited to the government are also given in it.

Part-B is very important

If we talk about Part B of Form-16, it contains information about tax along with salary breakup. It tells what is your gross salary, what is your net salary, how much house rent allowance you have received, how much money has gone into your PF account. Also, you get to know how much professional tax has been levied on your salary and what deductions you have got under different sections. It also contains information about your investments, what investments you have made in medical, how much money you have invested in saving plans and what other tax exemptions you have got.

Match Form-16 with Form-26AS

Form 26AS is a consolidated tax statement. It contains details of tax deductions from different sources of income of the taxpayer. Form 26AS can be downloaded from the e-filing account on the Income Tax website. Before filing the return, it is important that you reconcile the income given in your Form 26AS and Form 16.

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The government has made income up to Rs 12 lakh per annum tax free. But from April 1, 2025, the Income Tax Department will have the legal right to view and access your social media accounts, personal email and bank accounts, online investment accounts, trading accounts and other things.

IT Act

However, honest taxpayers will not have any problem in this. Let us tell you, the officers will have this right in the new Income Tax Act. Section 132 of the existing IT Act, 1961 allows officers to conduct searches and seize property and accounts if they have information and reason to believe that a person has any income, property or documents, which they will not disclose deliberately to avoid income tax.

Virtual digital space

One way they do this under the current law is to break open the lock of any door, box or locker if the keys are not available and they suspect that any undeclared assets or account books are kept there. Under the new income tax bill, this power has been extended to your computer system or virtual digital space as well.

Section 247 of the Income Tax Bill

According to Clause 247 of the Income Tax Bill, if an officer has reason to believe that a person has undeclared income or property which is covered under the Income Tax Act, he can break the lock of any door, box, locker, safe, cupboard or other instrument. He can also gain access to any computer system or virtual digital space by overriding the access code.

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According to reports, it will be introduced in Parliament on February 13, 2025. The aim of this new bill is to make the income tax system more transparent and comfortable for taxpayers.

The new income tax bill will be implemented from April 1, 2026

The government approved this bill on 7 February 2025. This new law will replace the old Income Tax Act in force since 1961. The government aims to simplify and modernize the tax system. According to reports, this bill will come into force from April 1, 2026 and its official name will be “Income Tax Act, 2025”.

Key highlights of the new Income Tax Bill

Simplifying tax rules : The tax system will be made more simple and taxpayer-friendly. Old and complex tax provisions will be removed and easy and clear rules will be implemented.

New system for resolving tax disputes : Special provisions will be added to resolve tax related matters faster. A digital dispute resolution system will be implemented to save taxpayers from unnecessary legal complications.

New powers to CBDT: Earlier, the Income Tax Department had to seek Parliament’s approval to implement various tax schemes. But under the new bill, the Central Board of Direct Taxes (CBDT) has been empowered to independently launch tax schemes. This will reduce bureaucratic delays and make tax administration more effective.

Digital Tax Monitoring: A new digital tax monitoring system will be implemented. This will make tax compliance easier and keep an eye on fraud.

Tax exemptions and deductions in the new bill

Annual income up to Rs 12 lakh will be tax free.

Standard Deduction

• ₹75,000 in the new tax regime
• ₹50,000 in the old tax regime

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But in some cases you may have to pay income tax even on income less than Rs 12 lakh. Yes, some special types of income have been included in this, because in these cases the tax liability will not be zero due to the exemption under section 87A. It has been made clear in the budget that income from certain special cases will not get the benefit of income tax exemption under section 87A.

Where will you not get discount?

The government has kept the income from section 111A (short term capital gains), section 112 (long term capital gains) etc. separate from the exemption under section 87A. This simply means that if your annual income is Rs 12 lakh, in which your salary is Rs 8 lakh and Rs 4 lakh is from capital gains (such as profit from stock market or property), then tax exemption under section 87A will be available only on Rs 8 lakh. That is, you will have to pay income tax separately on capital gains of Rs 4 lakh. In this, you will get exemption only on 8 lakh out of Rs 12 lakh and will not get it on the remaining four lakh.

10% tax on income of eight to 12 lakhs

As per the new tax slab, there is a tax of 10% on income of eight to 12 lakh rupees. In this way, in the financial year 2026, there will be no tax on your income up to 8 lakhs with the exemption of section 87A. But on the remaining four lakh rupees, 10% income tax will be levied as per the tax slab according to short term capital gain (profit in the stock market), which is Rs 40,000. Similarly, if your income is more than 12 lakhs and it includes both your salary and short term capital gain, then you will have to pay income tax as per the tax slab on the income from the stock market.

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We keep our savings in savings accounts. But, there is a limit to this as well. If we have more money in our account than this limit, then we can come under the radar of the Income Tax Department. Many people are still unaware of this. In this article, we will tell you what are the rules of the Income Tax Department regarding savings accounts.

Information will have to be given on transactions more than this

According to financial experts, the total amount deposited in a savings account in a financial year should not exceed Rs 10 lakh. If it exceeds this limit, then information about it will have to be given to the Income Tax Department. At the same time, according to Section 269ST of the Income Tax Act, the account holder can transact Rs 2 lakh in a day. If he transacts more than that, he will have to explain the reason to the bank.

Banks also provide this information

According to the rules, if a person deposits Rs 50,000 or more in a day, he has to inform the bank about it. Apart from this, the account holder also has to provide his PAN details. If the account holder does not have a PAN, he has to submit Form 60 or 61. At the same time, transactions of more than Rs 10 lakh are considered high-value transactions. The bank gives information about such transactions to the Income Tax Department.

What to do if you receive a notice?

Many times, for some reason, we make such a big transaction and do not inform the Income Tax Department about it. In such a situation, we get a notice from the department. Now the question arises that what should we do in this situation? If you get such a notice, then you should respond to it. Along with the reply to the notice, you should also give information about the documents related to it. These documents include statements, investment records, or assets etc. According to experts, if you have any problem in responding to the notice or regarding the documents, then you can consult a financial advisor.

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Today we will answer both these questions. Personal finance experts say that according to the Income Tax Rules, the total cash deposit or withdrawal in a savings account during 1 financial year should not exceed Rs 10 lakh. Apart from this, according to section 269ST, a person cannot take a total of Rs 2 lakh or more in cash from a person in a single transaction or in transactions related to an event in a day. If there is a total cash deposit of more than Rs 10 lakh in all your savings accounts in a financial year i.e. between April 1 and March 31, then the Income Tax Department should be informed. Banks have to disclose such transactions, even if they are spread across multiple accounts.

High value transactions

Now the question is, what will happen if more than Rs 10 lakh cash comes into your savings account in a financial year? Any amount above this limit will be considered a high value transaction. Banks or financial institutions will have to inform the Income Tax Department about this under Section 114B of the Income Tax Act, 1962. Apart from this, you will have to provide PAN number to deposit more than Rs 50 thousand in a day. If you do not have a PAN, then you will have to submit Form 60/61 as an alternative.

How to respond to income tax notice?

To respond to an income tax notice related to high value transactions, you must have sufficient evidence to support your claim regarding the source of funds. These can be bank statements, investment records and inheritance documents. If you are unsure or concerned about the source of cash, you can consult a tax advisor.

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Children are earning a lot of money through these methods nowadays. Just like tax is collected from an adult according to his earnings. Is there any tax liability on the earnings of children as per the income tax slab? Let us know what is the rule of tax on the earnings of children.

Children have two types of income (Children have two types of income)

First of all, we have to understand that a child can have two types of income, Earned and Unearned Income. The income that the child has earned himself is called Earned Income. For example, the child may have earned money with the help of his YouTube page, Instagram account or any talent hunt show.

The second income is that which the child has not earned himself, but he has ownership rights over that income. This is called unearned income. For example, if any property, shares or any other investment is made in the name of the child, then the income that the child gets from it will be considered unearned income.

What is the income tax rule on children’s earnings

Section 64 (1A) of the Income Tax Act states that if a child earns money, he does not have to pay tax on his own income. The child’s income will be added to the income of the parents as per their tax slab. Then the parent in whose income the child’s income is added has to pay income tax as per the prescribed tax slab.

There will be no tax on earnings up to Rs 1500

According to Section 10(32) of the Income Tax Act, if a child earns up to Rs 1500 per year, then no tax is levied on it. That is, his income is tax free. If the child earns more than this every year, then the income above this is considered taxable by adding it to the income of his parents under Section 64(1A).

If both parents earn, then whose income will the child’s earnings be clubbed with?

If both the parents of the child earn, then tax is calculated by adding the child’s income to the income of the one who has higher income. If a child wins a lottery, then 30% TDS is deducted directly on the winning amount. A 10% surcharge is levied on this TDS and 4% cess is also to be paid.

What will happen if the parents are divorced?

If the child’s parents are divorced, then the child’s income is clubbed with the income of the parent who has custody of the child. On the other hand, if the child is an orphan, then ITR can be filed in the name of the child.

If the child is suffering from any disability mentioned in Section 80U and the disability is more than 40%, then the child’s earnings are not clubbed with the income of his/her parents.

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Income tax is such a law that only 6 to 7 crore people come under it, but it affects the entire population of the country. The government has talked about a big change in this law and some pages of the 60-year-old income tax law will become history in the coming time. The Central Board of Direct Taxes (CBDT) has also sought suggestions from the common man for this change. It says that our first goal is to end the red tape regarding tax and simplify its process for the common man.

In a statement issued by CBDT, it has been said that the government has formed an internal committee to review the income tax law. This committee will examine it in 4 ways and changes will be made as per the need. In this, the language of income tax will be simplified, there will be an emphasis on reducing disputes, compliance will also be reduced and tax laws will be implemented on the common man in real terms. After reviewing the existing law on these four parameters, the government will make changes in it according to whatever is appropriate.

You can also send suggestions

CBDT has said that common man can also send his suggestions through income tax portal. For this suggestions have been invited from 13th October and people can send their suggestions and verify them through OTP. If you also want to send suggestions, you can send them by visiting this portal https://eportal.incometax.gov.in/iec/foservices/#/pre-login/ita-comprehensive-review. To access the page, you can take the help of mobile number and OTP received on it.

How many rules are there in Income Tax now?

The government has talked about changing the existing rules under the Income Tax Act 1961. There are currently 298 sections, 14 schedules and 23 chapters in the Income Tax Act. Under this, there are many rules that interpret the Income Tax Act. Finance Minister Nirmala Sitharaman had said in the budget presented in July 2024 that the process of changing the Income Tax Act will be completed within the next 6 months. In this regard, its deadline is January 2025.

Let us tell you that the government has made changes

in income tax many times before. The government had introduced two regimes to simplify the income tax. In the old regime, many exemptions including 80C are still being provided, while in the new regime, the government has reduced the tax rates by eliminating 72 types of exemptions. It is clear that the government’s intention is to simplify the process of income tax filing. It is believed that more steps can be taken in this direction in the upcoming budget session.

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Nowadays almost every person uses saving account. Bank account has become very important in today’s time. In a family, children also have accounts along with their parents. Be it salary or scholarship, everyone requires a bank account number. However, no limit has been set regarding the maximum amount deposited in the savings account. But very few people know that the interest you get on savings account comes under the purview of income tax.

Many people in the country deposit their savings in bank accounts. Today in this article we will tell you when and how much tax is levied on savings account. According to Income Tax rules, how much tax is levied on the savings account.

For information, let us tell you that there are two types of bank accounts – one is Saving Account and the other is Current Account. People who open an account for the purpose of saving money select the option of saving account.

If we talk about saving account benefits, the bank gives many benefits like interest in it. Many people do not know that the interest received on the amount deposited in the savings account is not tax free. This means that we have to pay tax on savings account also.

Know when tax is levied on savings account

Actually, there is no limit for depositing money in savings account. Many bank holders are not even required to maintain minimum balance. But when more than a limit is deposited in the savings account, then the account holder has to pay tax on it.

In such a situation, you should keep in mind that you keep only that much money which comes under the purview of ITR (Income Tax Return). If you keep more money in the account than that, you will have to pay tax on the interest received by the bank.

Tax is levied on this amount

According to the Income Tax section, interest received from savings account is also counted as income. In such a situation, if the annual income of an account holder is Rs 10 lakh and he gets interest of Rs 10,000 on his savings account. Including this interest, his annual income will now be Rs 10,10,000. This much income is taxable as per the Income Tax Act. This means that now the account holder will have to pay tax on interest.

Give information about saving account to income tax

According to the rules of the Income Tax Department, if a person keeps more than Rs 10 lakh in cash in his savings account in one business year, then he should inform the Income Tax Department.

If they do not do so, the department can also take action against tax evasion. Let us tell you that Rs 10 lakh will be considered as income and it is taxable.

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The season of tax saving has arrived. People earning more have started struggling to save tax. The central government has given tax exemption on income up to Rs 7 lakh under the new tax regime, while annual income up to Rs 5 lakh has been exempted under the old tax regime. But if your annual income is more than these two limits then you may have to pay tax.

People have to pay tax on higher income as per the tax slab. Under the old tax regime, the Income Tax Rule says that no tax will have to be paid on annual income up to Rs 2.5 lakh. There is a provision of 5% tax on income of Rs 2.5-5 lakh. Whereas 20% tax is charged on annual income of Rs 5-10 lakh. There is a 30% tax slab on annual income of Rs 10 lakh and above.

Tax can be saved even on income of Rs 10.50 lakh

According to this, if your annual income is Rs 10 lakh then you will have to pay 30% tax. However, if you want, you will not have to pay even a single rupee tax. Not only this, even if your salary is Rs 10.50 lakh, you can save the entire amount of tax by investing and taking advantage of exemptions.

How can you save tax on income of Rs 10.50 lakh?

1. A rebate of up to Rs 50 thousand is available as standard deduction. In such a situation, tax will now be levied on Rs 10 lakh.

2. By investing in schemes like PPF, EPF, ELSS, NSC, you can save tax of Rs 1.5 lakh under Section 80C of Income Tax. Now if we subtract Rs 1.5 lakh from Rs 10 lakh, Rs 8.5 lakh will come under tax.

3. Similarly, if you separately invest up to Rs 50,000 annually in the National Pension System (NPS), then under Section 80CCD (1B), you get help in saving income tax of additional Rs 50 thousand. Now if we subtract Rs 50 thousand more, Rs 8 lakh will come under the tax net.

4. If a home loan is also taken, then tax saving of up to Rs 2 lakh can be done on its interest under Section 24B of Income Tax. If you subtract another Rs 2 lakh from Rs 8 lakh, the total tax income will be Rs 6 lakh.

5. By taking a medical policy under Section 80D of Income Tax, you can save tax up to Rs 25 thousand. Your name, your wife and children’s names should be there in this health insurance. Apart from this, if you buy health insurance in the name of your parents, you can get an extra discount of up to Rs 50,000. In this case, if we subtract 75 thousand from Rs 6 lakh, the total tax liability will be Rs 5.25 lakh.

6. If you donate to any organization, you can avail tax benefit of up to Rs 25,000. Under Section 80G of Income Tax, you can claim tax deduction up to Rs 25,000 on the amount given as donation.

After deducting Rs 25 thousand, your income will now come in the tax slab of Rs 5 lakh. According to Income Tax rules, no tax will have to be paid under the old tax regime on income up to Rs 5 lakh.

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Recently, a case between a senior citizen and the Income Tax Department in Mumbai reached the Mumbai bench of the Tax Tribunal. In this case, the senior citizen said that the penalty imposed for not giving information about the interest received on tax refund is not valid. In this case, Amarjeet Singh, an accountant member of the ITAT bench, and Sandeep Singh Karhel, a judicial member, said in their order that until the tax is refunded, no decision can be taken on whether the interest will be taxed or not.

In such a situation, it cannot be considered a case of reporting income in income tax return. Let us tell you that under 270A of the Income Tax Act, if a taxpayer gives wrong information about income or understates the income, then a heavy penalty is imposed on him. Come, let us know what this whole matter is?

What is the whole matter

Taxpayer K Singh filed his income tax return in the financial year 2016-17. In this he declared his income as Rs 1.9 crore. When the investigation was done, it was found that his income was around Rs 2 crore. The difference of Rs 9.7 lakh in this was the interest being received on tax refund. This information was not given while filing ITR.

Under Section 244A of the IT Act, the Income Tax Department will have to pay 0.5 percent interest on the tax refund every month. If interest comes from any source other than tax refund, then tax is applicable on it.

In the case of K Singh, the Income Tax Officer has issued a notice under Section 270A. Even before this notice was issued, he gave information about the interest being received on IT refund. In such a situation, it will not be considered a case of false information about income.

Ketan Ved, partner, Deloitte India, who represented the taxpayer in this case, told TOI that the interest received in the tax refund is either deposited in the taxpayer’s bank account or adjusted in the previous tax demands. In such a situation, there is no issue of non-disclosure of income by the taxpayer.

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Invalid PAN card holders will have to pay a fine to get their card reactivated. The IT department said that non-resident Indians (NRIs) can still use their PAN cards to fill ITR forms.

Income Tax Department tweeted

Clarifying this through its official Twitter handle, the department said, concerns have been raised by some NRIs/OCIs regarding their PAN being invalid, however they are exempted from linking their PAN with Aadhaar. Further, PAN holders whose PAN has been invalidated due to non-linking of PAN with Aadhaar have expressed concern about some of the implications of PAN becoming invalid.

NRIs and Overseas Citizens of India (OCIs), who fall under the categories mentioned in the tweet, are requested to approach their respective Jurisdictional Assessment Officers (JAOs) with necessary documents to update their residency in the database . The IT department has also shared the link of JAO directory to help the individuals to locate the officials.

ITR can also be filed with an invalid PAN card.

The Income Tax Department further clarified that invalid PAN card will not affect the filing of income tax returns. Taxpayers can still file ITR with invalid PAN card. However, it may also cause some harm to them. As their tax may be deducted more or their refund may also be delayed.

All those NRIs and OCIs who have not updated their residential status, their PAN cards have become invalid. PAN cards of OCI or foreign nationals who have not filed their ITR for the last three assessment years have been invalidated. The Income Tax Department said that if NRIs and OCIs update their database on PAN cards, they can maintain their tax filing smoothly.

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2 crore returns filed till July 11

The Income Tax Department said in a notification released on Twitter on Tuesday that two crore income tax returns have been filed till July 11 for the assessment year 2023-24. Last year, till July 20, two crore income tax returns were filed.

The Income Tax Department tweeted,

the Income Tax Department has said in its tweet that with the help of taxpayers, we have achieved the figure of two crore nine days earlier this year than last year. The tax department has asked those who have not yet filed returns for the assessment year 2023-24 to file returns as soon as possible to avoid last minute rush.

These people do not have to pay tax.

Under the new tax regime, income up to Rs 7 lakh is tax free. Similarly, if someone selects the old tax regime, then for those below 60 years of age, this exemption is Rs 2.5 lakh and for those above 60 years of age, this exemption is up to Rs 3 lakh.

File ITR before 31st July,

this time you can file income tax return till 31st July 2023. After this, if income tax return is filed, then penalty can be imposed. Income tax payers are constantly being made aware by the Income Tax Department. It is told by the department that to avoid any kind of penalty, file ITR on time.

Who will not have to pay penalty

Let us tell you that if your total income till the financial year 2021-22 is Rs 2.5 lakh or less, then you will not have to pay penalty for filing income tax after 31st July. The ITR filed on your behalf will be called Zero (0) ITR.

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Actually, day by day people are becoming aware about filing income tax. This time the income tax returns filed in June are about 12 percent more than the same period last year.

Can file even after 31st July

Let us tell you that the last date for the process of ITR filing is 31 July. However, according to the rules of Income Tax, you will not have to pay penalty for filing ITR even after 31st July. Let’s know what is this rule? Income tax payers are constantly being made aware by the Income Tax Department. It is told by the department that to avoid any kind of penalty, file ITR on time. But hardly you know that in some cases you can file ITR without penalty even after the last date.

Income tax experts say that under Section 234F of Income Tax, if the total income of a person during the financial year (Total Income in FY) does not exceed the basic exemption limit, then there is no difference in filing ITR late. Doesn’t have to In simple language, if your total income till the financial year 2021-22 is Rs 2.5 lakh or less, then you will not have to pay penalty for filing income tax after 31 July. The ITR filed on your behalf will be called Zero (0) ITR.

Exemption on age and annual income

Similarly, if someone selects the old tax regime, then this exemption is Rs 2.5 lakh for those below 60 years of age. At the same time, the income of up to three lakh rupees for those 60 years or more and less than 80 years is tax free. Similarly, the basic exemption limit for those above 80 years of age is 5 lakhs. Under the new tax regime, income up to Rs 7 lakh is tax free.

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Especially such taxpayers, who invest at the very last moment. They are looking for investment avenues for tax saving. Generally, there is no tax liability on annual income up to five lakh rupees. It has to pay tax on excess income. However, by choosing the investment option, taxpayers can get tax concession even on income of more than five lakh rupees. A taxpayer can also declare income up to Rs 10 lakh tax free.

Earning up to 2.5 lakh tax free

According to the Income Tax Rule, there is no tax liability on income up to 2.5 lakhs annually. There is a provision of 5% tax on income of Rs 2.5-5 lakh. Income tax is to be paid at 30% on income between 5 to 10 lakhs and 30% on income above 10 lakhs.

Suppose someone’s CTC is Rs 10 lakh. In this way, according to his annual income, he comes under the purview of 20 per cent tax slab. But if he wants, he will not have to pay even a single rupee as tax. For this, he has to choose all kinds of investment options. Then he can take advantage of exemption in income tax.

Standard deduction

Income tax rules clearly state that up to Rs 50,000 is available as standard deduction. So deduct this amount from your earning of Rs 10 lakhs, then it will be Rs (10,00,000-50,000=9,50,000).

Saving under 80C

After this, you can save tax of Rs 1.5 lakh under 80C. Saving schemes like EPF, PPF, ELSS, NSC come under this. You can get tax exemption by investing in them. Apart from this, you can also take tax exemption in the form of tuition fees for two children. Now deducting Rs 1,50,000 from Rs 9,50,000, then this amount will come to the tax net of Rs 8 lakh.

Home loan

Home loan borrowers can save an additional tax of Rs 2 lakh. Under section 24B of Income Tax, the home loan borrower gets tax exemption on the interest of two lakhs. You also deduct this from your annual income. (8,00,000-2,00,000= 6,00,000). In this way, now your income of Rs 6 lakh will come under the ambit of tax.

National Pension System

If you separately invest up to Rs 50,000 annually in the National Pension System (NPS), then under section 80CCD (1B) you can save an additional Rs 50,000 in income tax. (6,00,000-50,000 = 5,50,000). In this way, now the income of Rs 5.5 lakh will be taxable.

Health policy

You can save tax up to Rs 25,000 by taking a medical policy under section 80D of income tax. You, your wife and children should be named in this health insurance. Apart from this, if your parents are senior citizens, then you can get an additional discount of up to Rs 50,000 by purchasing health insurance in their name. (5,50,000- 75,000 = Rs.4,75,000). In this way, your income of Rs 10 lakh is now out of the purview of tax liability.

The income tax rules clearly state that the tax on an income of Rs 5 lakh is Rs 12,500 (5% of Rs 2.5 lakh). In this case, a rebate of Rs 12, 500 is available under Income Tax Section 87A. Then you choose the option of investment, then you will not have to pay tax of even a single rupee on the income of Rs 10 lakh.

The post Income Tax Rule: Income up to Rs 10 lakh can be tax free, if you adopt this method, know the all details here first appeared on Rightsofemployees.com.

Under the Income Tax (15th Aamendment) Rules, 2022, the Central Board of Direct Taxes (CBDT) has issued new rules, which have also come into force. This rule has been notified.

Know when PAN-Aadhaar will be necessary

If someone deposits Rs 20 lakh in cash in one or more accounts in a financial year, then he will have to submit PAN-Aadhaar.
It will be necessary to link PAN Aadhar even if you withdraw Rs 20 lakh from any one or more accounts in a banking company or co-operative bank or post office in a financial year.
PAN-Aadhaar will have to be given even if you open a current account or cash credit account with a banking company, co-operative bank or post office.
If someone opens a current account, then PAN card will be mandatory for that too.
– If someone’s bank account is already linked with PAN, then he will still have to link PAN-Aadhaar for transactions.

A close watch of the tax department

Actually, the Income Tax Department has taken this decision to reduce the counterfeiting of cash and for the purpose of monitoring. The government has taken this step so that the Income Tax Department remains updated with the financial transactions of the people. Now with the addition of Aadhaar and PAN, more and more people will come under the purview of income tax. Actually, when you have a PAN number during the transaction, the Income Tax Department will keep a close watch on you.

The post Income Tax Rule: Income Tax Department has changed the big rule, know otherwise… first appeared on Rightsofemployees.com.

Under the Income Tax (15th Aamendment) Rules, 2022, the Central Board of Direct Taxes (CBDT) has issued new rules, which have also come into effect from 26 May. This rule has been notified.

Know when PAN-Aadhaar will be necessary

If someone deposits Rs 20 lakh in cash in one or more accounts in a financial year, then he will have to submit PAN-Aadhaar.
Linking of PAN-Aadhaar will be necessary even for withdrawing Rs 20 lakh from any one or more accounts in a banking company or co-operative bank or post office in a financial year. 
PAN-Aadhaar will have to be given even if you open a current account or cash credit account with a banking company, co-operative bank or post office.
If someone opens a current account, then PAN card will be mandatory for that too.
– If someone’s bank account is already linked with PAN, then he will still have to link PAN-Aadhaar for transactions.

A close watch of the tax department

Actually, the Income Tax Department has taken this decision to reduce the counterfeiting of cash and for the purpose of monitoring. The government has taken this step so that the Income Tax Department remains updated with the financial transactions of the people. Now with the addition of Aadhaar and PAN, more and more people will come under the purview of Income Tax. Actually, when you have a PAN number during the transaction, the Income Tax Department will keep a close watch on you.

The post Income Tax Rule: Income Tax Department has made a change in this big rule, know otherwise it will be lost first appeared on Rightsofemployees.com.