If you’re short on immediate funds but need to pay your income tax, using a credit card can be a convenient option. The Income Tax Department allows taxpayers to pay certain tax liabilities online through its e-filing portal, including payments made via authorized credit card payment gateways.

However, while the facility offers flexibility, taxpayers should understand the associated charges and repayment rules before choosing this payment method.

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Can You Pay Income Tax Using a Credit Card?

Yes.

The Income Tax Department permits taxpayers to pay various direct taxes online using a credit card through its e-Pay Tax facility.

The option is available for payments such as:

• Advance Tax
• Self-Assessment Tax
• Outstanding Tax Demand
• Other eligible direct tax payments

The payment can be made through authorized payment gateways that support credit card transactions.

What Is the e-Pay Tax Facility?

The e-Pay Tax facility is an online service available on the Income Tax Department’s e-filing portal that allows taxpayers to pay taxes electronically.

The service is available in:

• Post-login mode (after signing into the e-filing portal)
• Pre-login mode (using PAN/TAN verification through OTP)

Besides credit cards, taxpayers can also make payments using:

• Debit Cards
• Net Banking
• UPI

Once a payment mode is selected, users are redirected to the respective payment gateway to complete the transaction.

How to Pay Income Tax Using a Credit Card

Follow these steps after logging into the Income Tax e-filing portal:

Step 1

Go to:

Dashboard → e-File → e-Pay Tax

Select the appropriate option and click Continue.

Step 2

On the e-Pay Tax page, click New Payment.

Step 3

Choose the relevant tax payment category, assessment year, minor head and other required details before clicking Continue.

Step 4

Enter the applicable tax amounts under the relevant tax heads and proceed.

Step 5

Select Credit Card as the payment method and complete the transaction through the payment gateway.

After successful payment, download and save the challan receipt for future reference.

Are There Any Charges?

Yes.

Paying income tax through a credit card is generally not free.

Banks and payment gateways may charge a convenience or processing fee, typically ranging from:

• 0.85% to 1.25% of the tax amount

The exact fee depends on the bank or payment gateway handling the transaction.

Will You Pay Interest?

Not necessarily.

The tax payment is treated like any other credit card purchase.

Interest is charged only if:

• You fail to pay the full credit card bill by the due date, or
• You carry forward the outstanding balance.

Most credit cards offer an interest-free period of around 45 to 55 days, allowing users to manage short-term cash flow without paying finance charges if the bill is cleared in full within the billing cycle.

Are There Any Benefits?

If the credit card bill is paid on time, taxpayers may enjoy several advantages, including:

• Better short-term cash flow management
• Reward points
• Cashback (if applicable)
• Interest-free credit during the billing cycle

However, these benefits should be weighed against the processing fee charged by the payment gateway.

Things to Keep in Mind

Before using a credit card to pay taxes, remember:

• Convenience or processing charges may apply.
• Clear the full credit card bill before the due date to avoid high interest charges.
• Keep the tax payment challan safely for future reference.
• Compare the processing fee with the rewards or cashback offered by your card to determine whether it is cost-effective.

Key Highlights

• Income tax can be paid using a credit card through the Income Tax Department’s e-filing portal.
• The facility supports advance tax, self-assessment tax and outstanding tax payments.
• Payments can be made in both pre-login and post-login modes.
• Banks and payment gateways may charge a convenience fee of 0.85% to 1.25%.
• Interest is charged only if the credit card bill is not paid in full by the due date.
• Most cards offer an interest-free period of 45–55 days.
• Taxpayers should download the challan after successful payment.

FAQs

Can I pay income tax using a credit card?

Yes. The Income Tax Department allows taxpayers to pay eligible taxes using a credit card through the e-Pay Tax facility on the e-filing portal.

Which taxes can be paid using a credit card?

Eligible payments include advance tax, self-assessment tax, outstanding tax demands and other applicable direct taxes.

Is there any fee for paying income tax by credit card?

Yes. Banks or payment gateways may charge a convenience or processing fee, typically between 0.85% and 1.25% of the transaction amount.

Will I be charged interest immediately?

No. Interest is charged only if you do not pay your full credit card bill by the due date.

Can I earn reward points when paying income tax with a credit card?

Yes. Depending on your card issuer’s policy, the transaction may qualify for reward points or cashback, though taxpayers should compare these benefits with the applicable processing charges.

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The clock is ticking. Tomorrow, FM Nirmala Sitharaman will deliver her ninth Union Budget. Specifically, millions of salaried Indians are waiting. Last year, the government made income up to ₹12.75 lakh tax-free. Notably, people now want even more. Consequently, all eyes are on the Parliament.

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Table of Contents

• The Fight for a Higher Standard Deduction

• Current Tax Slabs: A Quick Look

• Expert Views: Will Slabs Change?

• Old vs New Tax Regime

• Conclusion

The Fight for a Higher Standard Deduction

Salaried workers face rising costs every day. First, many hope the standard deduction will go up. Specifically, it sits at ₹75,000 right now. Notably, experts want the FM to hike it to ₹1 lakh. Furthermore, this change would make income up to ₹13 lakh totally tax-free. Therefore, it is the top demand for 2026.

Current Tax Slabs: A Quick Look

Knowing your current tax is vital. Notably, the new regime is now the default choice. Specifically, it has more steps to lower your bill.

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Expert Views: Will Slabs Change?

Most experts do not expect a huge slab overhaul. Notably, a major tax cut happened just last year. However, there is a strong call to fix TDS rules. Specifically, the current system is too complex. Consequently, the government may simplify how tax is cut at the source to save time for all.

Old vs New Tax Regime

Which one is better for you? Specifically, the old regime allows for more deductions like LIC or home loans. Notably, the new regime offers lower rates but fewer breaks. Moreover, the government wants everyone to switch to the new system. In fact, most taxpayers have already made the jump.

Conclusion

Budget 2026 is a big moment for India. Specifically, the FM must balance the books while helping the middle class. Notably, even small tweaks to the standard deduction will mean more cash in hand. In conclusion, tomorrow’s speech will define the financial year for us all.

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Income Tax Refund Delay 2025: Millions of taxpayers filed their income tax returns months ago, but they still haven’t received their refunds. Every morning, taxpayers are checking their bank accounts, but their refunds haven’t arrived. Why are ITR refunds so delayed? CBDT Chairman Ravi Agarwal himself has provided the answer. Let’s explore the details.

CBDT Chairman Explains These Reasons
Inaugurating the Taxpayers’ Lounge at the India International Trade Fair 2025 on Monday, CBDT Chairman Ravi Agarwal said, “In many cases, incorrect or excessive deduction claims have been made. These are being investigated. While small refunds are being issued regularly, the department is taking precautions with suspicious returns. Many taxpayers have been sent messages asking them to file revised returns.” He further stated, “We are trying to ensure that all remaining refunds are issued this month or by December.”

Interest will be charged if the refund is delayed.

Furthermore, he stated that if the refund is delayed through no fault of yours, the government will transfer the refund along with interest. Under Section 244A of the Income Tax Act, taxpayers receive simple interest at the rate of 0.5 percent per month for delayed refunds. However, there are certain conditions.

1. If the ITR is filed on time, interest will be charged from April 1, 2025.

2. If the ITR is filed late, interest will be charged from the date of filing.

3. Interest continues to accrue even during scrutiny, provided the delay is not due to you.

4. However, if the refund is less than ₹100 or is due to an overpayment of self-assessment tax, no interest will be charged.

Refunds can also be withheld due to these five reasons:

1. If the form does not match Form 26AS, AIS, or TIS, the refund is withheld. Refunds can also be withheld due to TDS credit errors, such as incorrect TAN, outdated invoices, or differences in net-gross interest.

2. Furthermore, returns with foreign income, capital gains, income from multiple sources, or high-value transactions face increased scrutiny. This often results in refund delays.

3. Refunds can also be withheld if the taxpayer’s PAN is inoperative, TDS credit is denied, e-verification is not performed, the bank account is not active, or the PAN is not linked to Aadhaar.

4. Furthermore, if e-verification is not completed within 30 days of filing the return, the return is considered invalid.

5. Refunds can also be withheld if there is any outstanding tax from the previous year.

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Income Tax Refund: For the past few months, a large number of taxpayers have been worried about the delay in their income tax refunds. People are constantly questioning on social media platforms why refunds haven’t been issued even weeks, even months, after filing.

In many cases, returns are showing as “Under Processing,” some have received “Defective Return” notices, while many taxpayers are simply at a loss for the reason for the delay. This begs the question: why are refunds delayed, and what steps should taxpayers take to receive their refunds on time?

Increasing complaints on social media

Delays in tax refunds have become common in the past few months. Many people have written that they have filed revised returns or are awaiting refunds due to complex entries such as foreign investments, capital gains, or advance tax payments.

Many taxpayers have received their refunds, while others have been waiting for months. Tax experts say that factors such as high CTC, multiple income sources, or investment complexity slow down the refund process.

5 Major Reasons for Refund Delays

• The department conducts additional scrutiny on refunds exceeding ₹1 lakh, which delays processing.
• Returns that include foreign income, capital gains, or multiple income sources must undergo manual verification.
• Refunds that receive a ‘Defective Return’ notice under Section 154 may be withheld until a new ITR is filed.
• Sometimes, government liquidity constraints cause large-scale refund delays.
• If you filed a revised ITR, it takes longer for the system to process the new data.

What types of refunds are processed quickly?

Tax experts say that delays in refunds are due to technical scrutiny as well as administrative reasons. The department, especially for high-value refunds, requires additional verification. If there are any defects in the return, the system blocks it and requires the taxpayer to file a new ITR.

Simple return forms like ITR-1 (Sahaj) are generally processed quickly. However, complex forms like ITR-2 and ITR-3 may experience delays. Therefore, it is important that taxpayers periodically check the status of their returns on the Income Tax e-Filing Portal to determine if there are any pending notices or information from the department.

Other Reasons for Refund Delays

• Refund delays can be caused not only by departmental investigations but also by minor errors made by the taxpayer.
• If you fail to verify your ITR after filing, the return becomes invalid and the refund is not issued.
  If the tax credit shown in the return does not match Form 26AS or Annual Information Statement (AIS), the department may withhold the refund.
• Sometimes, even minor discrepancies in the amounts reported by the bank, employer, or financial institution can stall the refund process.
• In such cases, you should visit the CPC portal to file a grievance and resolve the mismatch.

ITR Filing Deadlines and Rules

The last date for filing ITR for non-audit cases for the financial year 2024-25 (FY25) was September 16, 2025. This date was previously extended twice from July 31. First, to September 15, due to major changes to the ITR form. Then, it was extended by one more day, to September 16, due to technical issues with the portal.

Those who have not yet filed their ITR can file a belated return by December 31, 2025. However, they will be subject to a late fee.

Filing your return before the end of the year is essential to avoid penalties or notices.

What to do if your refund is stuck

• If your refund hasn’t arrived for a long time, there’s no need to panic.
• First, check whether you’ve verified your return.
• Then, match the data in your Form 26AS and AIS with your return.
• If there’s a mismatch, file a grievance on the CPC portal.
• If you’ve filed a revised return, be patient. Its processing time is longer.

Delays in tax refunds are not uncommon. But by being vigilant and providing correct information, you can quickly overcome this problem. Keep your documents updated, regularly check your refund status on the portal, and respond promptly to any notices. This increases your chances of receiving your refund quickly.

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Income Tax Rules: In today’s era of promoting digital payments, the tax department’s strictness on cash transactions is not surprising. Therefore, it’s important to be aware of the current law so that you don’t get into trouble due to your negligence. In any case, the Income Tax Department keeps a close eye on high-value transactions. Therefore, taxpayers should always be cautious about such transactions. Let’s find out how much cash you can transact in a day.

According to Section 269ST of the Income Tax Act, any individual can transact up to ₹2 lakh per day. If the transaction amount exceeds this limit, you may be at risk from the Income Tax Department. Abhishek Soni, CEO and co-founder of Tax2win, says that taxpayers should be aware that the Income Tax Department monitors cash transactions exceeding a certain limit. Notices from tax officials are possible.

Penalties may apply.
If someone violates Section 269ST and accepts cash of ₹2 lakh or more, they may have to pay the entire amount as a fine. For example, if you accept ₹3 lakh in cash for a property deal or business transaction, if the tax department catches you, you will have to pay a fine of the full ₹3 lakh. This rule applies to all types of money. Tax experts say that even simple or personal transactions can come under scrutiny.

How to avoid an income tax notice?
If you want to avoid an income tax notice, it’s crucial to maintain transparency in all your transactions. Whether cash or UPI, ensure you have a bill or proof for every transaction. Especially for transactions involving the purchase and sale of large items, it’s crucial to obtain a bill. This will avoid any future problems.

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Tax on Savings Account: If you have a bank account, this news will prove to be very useful for you. Middle-class people save money to secure their future and keep it in a bank account, which is used for their own benefit and that of their families. Today, we’ll discuss the interest earned on this money. When money remains in a bank account for a long time, it starts earning interest, but now the question arises whether that interest is taxable. Let’s find out how much tax is levied on the interest earned on money kept in a savings account.

Is tax payable on savings account interest?

If the bank pays interest on the money in your savings account, it will be considered part of your income and you will have to pay tax on it. However, the Income Tax Department has also provided some exemptions on this.

How much exemption is available?

If you have received interest of more than ₹10,000 in your bank account, you must pay tax under Section 80TTA of the Income Tax Act. However, if the interest is up to or less than ₹10,000, you are not required to pay tax. This exemption applies to savings accounts held at banks, post offices, or cooperative banks.

How is tax levied above ₹10,000?

If you have received interest of more than ₹10,000 in your bank account, you must pay tax on the excess amount. For example, if your total income falls in the 20% tax slab and you received ₹15,000 in interest, you will be taxed at 20% on ₹5,000.

Are FDs also eligible for exemption?

The Income Tax Department has granted exemption only on savings accounts. If you have invested in a fixed deposit (FD) or recurring deposit (RD), the interest earned on those deposits is not eligible for exemption.

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Why is there a delay in refund?
If taxpayers have made any mistakes in the refund, they may have to file a revised return. As per the guidelines of the Income Tax Department, the refund process starts as soon as the ITR is filed. In case of e-verification, the refund is received quickly. However, in some cases the refund gets stuck. Most of the cases are those where e-verification has not been done within 30 days of filing the ITR or the bank details have been entered incorrectly.

Therefore, it is important that ITR is filed correctly and e-verification is done within 30 days. If this is not done, the return may be invalid. The Income Tax Department starts the refund process only after e-verification.

What to do if you don’t get a refund?

• Those who file ITR-1 usually get their refund within 10 to 15 days.
• Those filing ITR-2 may take 20 to 45 days.
• It may take about two months for those filing ITR-3 to receive their refund.

If there is a delay in the permit, one can call the Income Tax Department’s passport number 1800-103-4455. Apart from this, officials can also be contacted through mail by emailing at Ask@incometax.gov.in.

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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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Meanwhile, many people have filed their ITR and are now waiting for their refund (ITR Refund). Now people want to know when the refund will come? Let us tell you that there is no fixed date for this, but if you want, you can check the refund status yourself by visiting the Income Tax website. Let us know how to check the refund status.

First of all go to the e-filing portal

If you want to know the status of your refund, then first you will have to go to the e-filing portal of Income Tax.

Login with ID-Password

You will have to login on the portal with your ID (PAN) and password. Here you will also have to enter a captcha code.

From there, go to your returns

In the next step, you will have to go to the e-File tab and click on View Filed Returns under Income Tax Returns.

check refund status

There you have to click on View Details. Here you will also know the status of the refund and will also be able to see the life cycle of ITR.

If the refund has been issued…

If your refund has been issued, you will see a picture like the one above.

Refund partially adjusted…

If your refund has been partially adjusted, you will see a picture like this.

Full refund adjusted

If your entire refund has been adjusted, you will see a picture like this.

If the refund fails…

If your refund has failed then you will see something like this.

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Tax rates on high incomes

First of all, it is important to know how much income falls in the highest tax slab. If you use the old system of income tax and your annual income is more than Rs 10 lakh, you will have to pay 30 percent tax. In the new system, 30 percent tax is levied on income above Rs 24 lakh annually. This means that the tax rates are higher in the old system. However, it has to be kept in mind that the old system provides deduction benefits. The new system does not offer deduction benefits.

A gift or loan can be given to the wife.

Let’s say your annual income is Rs 30,00,000. This means you fall in the highest tax bracket. Your wife needs Rs 30,00,000 to open a shop. You want to give this money to your wife. There are two ways to do this. You can give this money to your wife as a gift. In the other way, you can give this money to your wife as a loan. From a tax perspective, giving this money to your wife as a loan can lead to huge tax savings.

There are different tax rules on gifts.

If you gift Rs 30,00,000 to your wife, different tax rules will apply. Section 64(1)(IV) of the Income Tax Act, 1961 states that if a husband gives money to his wife as a gift, the wife will not have to pay tax on the income earned from that money. That income will be added to the income of the person giving the gift (here the husband). Then the entire income will have to be taxed as per the slab.

The tax calculation on gifting in this way

can be easily understood with the help of an example. Suppose the Rs 30 lakh given to the wife gives an income of Rs 6 lakh in a year. Then this income will be added to the husband’s income. This will make the husband’s total income Rs 36 lakh annually. He will have to pay tax on the income of Rs 36 lakh instead of Rs 30.

Suppose your husband’s taxable income is Rs 28 lakh, then after adding the income from your gift, your total taxable income becomes Rs 34 lakh. On a taxable income of Rs 34 lakh, you will have to pay tax of Rs 8,58,000 under the old regime, while under the new regime you will have to pay tax of Rs 7,77,400.

Calculation of tax on loan

Now suppose that the husband gives a loan of Rs. 30,00,000 to his wife. He gives this loan at an annual interest rate of 10 percent. Using this loan money, the wife earns an income of Rs. 6 lakh. The wife gives 10 percent interest to her husband, which means that she gives Rs. 3 lakh to her husband. Now her profit decreases to Rs. 3 lakh.

Less tax on loan instead of gift Now the husband’s income becomes Rs 31 lakh (28+3). On this income of Rs 31 lakh, the husband’s tax in the old system will be Rs 7,64,400, while in the new system it will be Rs 6,83,800. This means that the husband is getting tax benefit by giving loan as opposed to gift. The wife’s income is Rs 3 lakh, on which no tax will be levied in the new income tax regime. A nominal tax will be levied in the old regime. It has to be kept in mind that this tax calculation is for the assessment year 2025-26.

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Income Tax: Recently, a big relief news came from the Income Tax Department for the taxpayers. The Income Tax Department has now started the facility of online filing of Form ITR-B for those who have received a notice under Section 158BC of the Income Tax Act. Now this form can be filled by going to the e-Proceeding tab of the Income Tax portal.

With this decision, taxpayers will get rid of the manual process and they will be able to do the necessary work digitally from home. This step of the Income Tax Department is considered a big step towards making the tax system more transparent and technology based.

After all, what is 158BC?

When the Income Tax Department conducts a search or seizure and undisclosed income is discovered, then section 158BC comes into force. Under this section, the Assessing Officer can send a notice to the taxpayer and order him to file returns for the last 6 assessment years. ITR-B form is specially used for this.

Now the option of e-Proceeding will be available on the portal

Earlier this form had to be filled manually. Due to this, there was a hassle of submitting documents in the tax office and corruption also increased. Now taxpayers can easily fill this form by logging into the income tax portal and going to the e-Proceeding tab. This will not only make the process easier, but will also save time and reduce the chances of error.

CBDT issued advisory

The Central Board of Direct Taxes (CBDT) has appealed to all such taxpayers who have received a notice under section 158BC to avail this online facility without delay. Complete guidelines and step by step instructions have also been provided on the portal, which has made filing returns even easier.

CBDT issued advisory

The Central Board of Direct Taxes (CBDT) has appealed to all such taxpayers who have received a notice under section 158BC to avail this online facility without delay. Complete guidelines and step by step instructions have also been provided on the portal, which has made filing returns even easier.

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There are many types of income in India on which income tax is not levied. No tax has to be paid on such income. The government has kept these incomes in the tax free category. Know here what are these 10 incomes.

Agricultural Income – Income from agriculture is completely tax free under Section 10(1) of the Income Tax Act.

Money received from insurance policy – ​​The maturity or bonus amount of a life insurance policy is tax free subject to certain conditions.

Interest and total amount received from Public Provident Fund (PPF): The interest received on the amount deposited in the PPF account and the amount received on maturity are completely tax free.

Scholarships and Government Awards – The amount of scholarships received from the government or recognized institutions and state or national awards like Bharat Ratna, Arjuna Award etc. are tax free.

Gifts received from relatives: Gifts received from close relatives are tax-free under certain conditions. Gifts received at the time of marriage are also tax-free.

Receipt received from HUF – The amount received by the member from HUF is tax free.

Retirement benefits: Gratuity up to certain limits, holiday cash (for government employees) and certain categories of pension are tax free.

Medical insurance, certain allowances received from office – such as medical insurance premium, meal coupons, office telephone, internet bills etc. are tax free up to certain limits.

PF, NPS, Senior Citizen Savings Scheme – The interest or maturity amount received from these investments is tax free subject to certain conditions.

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The post 10 Types Of Income Which Are Tax Free – Key Details inside first appeared on Rightsofemployees.com.

Although the filing deadline has been extended to 15 September 2025, taxpayers remain anxious for the release of the remaining ITR form utilities.

Taxpayers have voiced their frustration on social media over the delay. One user on platform ‘X’ urged that the utilities for ITR-2 and ITR-3 be released without further delay. Meanwhile, chartered accountants have also questioned why the Income Tax Department has remained silent on the timeline for releasing the Excel utilities.

About ITR-1 And ITR-4

The Central Board of Direct Taxes (CBDT) notified ITR-1 and ITR-4 via an official notification issued on April 29, 2025.

ITR-1: This form is meant for individuals who are residents in India (but not ordinarily resident), with a total income of up to ₹50 lakh. It applies to those earning income from salary, one house property, other sources, long-term capital gains up to ₹1.25 lakh under Section 112A, and agricultural income up to ₹5,000.

ITR-4: This form is applicable to individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with a total income of up to ₹50 lakh, who declare income from business or profession under sections 44AD, 44ADA, or 44AE. It also permits reporting of long-term capital gains up to ₹1.25 lakh under Section 112A.

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But, experts say that taxpayers should not use the last date to file returns. While filing returns, you should not try to hide any kind of income.

Income should be based on high value transactions

Experts say that the Income Tax Department keeps track of every financial transaction of taxpayers. It especially keeps an eye on high value transactions. This means that if a person makes a high value transaction, but shows a very low income in the income tax return, then it is certain that he will come under the scrutiny of the Income Tax Department. The purpose of tracking high value transactions is to curb cases of tax evasion.

There is a special eye on the data of deposits in the bank

The Income Tax Department keeps an eye on high value transactions of taxpayers with the help of data received from banks and financial institutions. Vivek Jalan, partner, Tax Connect Advisory Services LLP, said that as per the rules, banks and other financial institutions are required to give information about many types of transactions to the Income Tax Department. For example, if a person deposits more than Rs 10 lakh in savings accounts in a financial year, then the bank has to give this information to the Income Tax Department.

The income tax department becomes cautious even if you withdraw more money

If a person withdraws or deposits more than Rs 50 lakh from the current account, the bank will have to give its information to the Income Tax Department. If a person pays a credit card bill of Rs 10 lakh (excluding cash) in a financial year, then the bank issuing the credit card will give its information to the Income Tax Department. If Rs 2 lakh comes into your account from the sale of goods or services, then the department will get its information.

These are the biggest weapons of the Income Tax Department

It is important for you to understand that the Income Tax Department does not track individual transactions of taxpayers. Instead, the department uses Annual Information Statement (AIS) and Form 26AS. Both these documents contain every transaction of taxpayers, big or small. For example, if you have bought or sold shares, then its information will be there in it. If you have traded in the stock markets, then its information will also be there in it.

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Especially from FY 2025–26, this regime will suit most taxpayers more. With the changed slab rates, standard deduction and now the salary structuring facility being provided by the companies, it is possible to pay ZERO tax even on a salary of up to ₹ 19,20,000. How? Let us now understand in detail.

How will ZERO TAX be implemented?

From FY 2025–26, the slabs of the New Tax Regime have been changed and along with that companies are now making the salary structure tax friendly. The result is that even if your annual salary is up to ₹19.20 lakh, you can pay ZERO TAX by making sensible deductions and structuring.

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What is Form 16?

Form 16 or 16A is a certificate issued by the employer when he deducts tax from the salary of the employees. It contains information on how much tax was deducted and deposited to the government. This document is given to the employees by the end of May every year.

How does digital Form 16 work?

Digital Form 16 is generated directly from the TRACES portal, so the information given in it is accurate and consistent. This new digital form contains complete details of tax-free allowances (exemptions), deductions and salary, which avoids any confusion while filing tax.

Now taxpayers can upload this digital document directly on the tax filing websites. The system automatically fills in all the required information, which saves time and reduces the chances of mistakes. Also, if any mistake is made, the system gives an alert so that it can be corrected beforehand.

Which ITR form for whom?

There are two simple forms for simple taxpayers — ITR-1 (Sahaj) and ITR-4 (Sugam).

ITR-1 (Sahaj) can be filed by those whose annual income is up to Rs 50 lakh. Those who earn money from salary, income from one house, interest and agricultural income up to a maximum of Rs 5,000.

ITR-4 (Sugam) is for individuals, HUFs i.e. Hindu Undivided Families and firms whose income is less than Rs 50 lakh and they earn from business or profession.

Last date for filing return

For individuals who do not require audit, the last date for filing returns is July 31. For businesses and professionals who require audit, the deadline is October 31. With digital Form 16, filing tax returns has now become easier, faster and safer than ever before.

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Let us know what problems you may face if you have not transferred PF after changing jobs and what is the right solution for it.

There may be loss on EPF interest

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1. A major change divides capital gains into two periods, including the period before July 23, 2024 and then after it. This is as per the amendment made in the Finance Act 2024. With the help of this change, companies will be able to adjust their tax calculations based on the revised capital gains tax regime applicable in the middle of the year.

2. Now companies will also be able to claim capital losses on share buyback. The only condition is that the related dividend income should be reported under ‘Income from other sources’ after October 1, 2024. The purpose of this provision is to provide a clear picture for the forms involved in the buyback transaction. Tax experts say that this move will encourage more transparent reporting.

3. The CBDT has also introduced a presumptive taxation rule for non-resident cruise ship operators under section 44BBC, under which 20% of passenger carriage receipts will be treated as taxable profit.

4. Foreign companies selling rough diamonds in designated special areas will now operate under the safe harbour rule (Rule 10TIA), which requires a profit margin of at least 4% on gross receipts. The measure, which comes into effect from April 1, 2024, is aimed at simplifying transfer pricing for the diamond sector.

5. Reporting now also includes mandatory disclosure of TDS section code in Schedule-TDS and deduction claimed under section 24(b) for home loans, reflecting the government’s effort towards income tracking.

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Even to make payment, there is no need to go to the bank and stand in queues. Money can be easily sent and received from home or anywhere through phone.

But despite this, even today people prefer to transact in cash and consider it safer than digital payment. If you also do cash transactions several times a day, then you should know about the rules related to income tax. Actually, if you do cash transactions more than the limit in a day, then the Income Tax Department can take action by sending a notice to your house. Therefore, it is very important to know the limit of cash transactions.

Cash Transaction

In this era of digital payments, the monitoring of the Income Tax Department has also increased a lot. Often people think that whether it is a digital payment or a cash transaction, if you do not tell the department, they will not know.

Actually, people who do cash transactions think like this more. Yes, the Income Tax Department keeps a close watch on big cash transactions. In such a situation, if you make any mistake while taking cash, you will get an Income Tax notice.

Rules for cash transactions-

Action on 5 lakh cash transaction-

If a person takes up to Rs 5 lakh in cash in a day and in such a situation the Income Tax Department issues a notice, then if that person is unable to give correct information about the source of that income in response to the notice, then action can be taken against him.

Apart from this, strict action can be taken against the person and he may also have to pay a heavy fine. However, this limit of Rs 5 lakh cash does not apply to cash withdrawn from banks and post offices.

How many cash transactions can be done in a day?

According to section 269ST, no person can do a cash transaction of more than Rs 2 lakh in a day. Even a single transaction should not exceed 2 lakhs. According to the rules, you cannot take more than Rs 2 lakh cash from a person in a day. You may face action if you violate these rules of the Income Tax Department.

How to do the transaction –

If you are going to receive a large amount of cash payment or are going to give it to someone for some work, then in such a situation always try to do the transaction through banking options like NEFT, RTGS, UPI.

By transacting through these options, you can avoid notices from the Income Tax Department, and financial transparency will also be maintained. In such a situation, everyone should avoid taking more than Rs 2 lakh in cash as far as possible.

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The last date for filing income tax return for the financial year 2024-25 is 31 July. The process of filing returns will start as soon as the Income Tax Department releases utilities and ITR forms. Before this, it is important for taxpayers to know about the e-feature of income tax.

What is the e-pay feature of Income Tax Department?

e-pay is a digital gateway of the Income Tax Department, which makes the process of tax payment very easy. Taxpayers can easily pay their taxes using this feature. Using this system is completely safe. The tax money reaches the Income Tax Department immediately. A taxpayer can use the e-pay feature for tax payment through net banking, debit card, NEFT/RTGS etc.

How can e-features be used?

To use the e-pay feature, you have to go to the income tax e-filing portal. After logging in with your ID and password, you will see this feature in the quick link on the home page. After clicking on this feature, you will have to enter your PAN and mobile number. After this, a six-digit OTP will come on your mobile phone. As soon as you enter it, your verification will be completed. After that you have to select the type of payment. After that you have to select the financial year. Then you have to select the payment mode and bank. After that, as soon as you click on Pay Now, your payment will be done.

The use of e-pay is completely safe

Experts say that e-pay is the easiest way to pay income tax. It is also safe. There is almost no chance of transaction failure. Taxpayers are assured that the tax money will reach the income tax department immediately. Taxpayers can use the e-pay feature for tax payment by filing income tax returns within the deadline. This will save the taxpayer from paying penalty and interest on tax.

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If you are told that your salary has increased from today i.e. 1st April 2025 without appraisal, then you will probably think what kind of joke is this? But the truth is, if you come under the purview of Income Tax or are going to come under its purview from the new financial year, then for them the New Tax Regime is no less than an appraisal.

Actually, the new tax regime has come into effect from April 1, 2025, and this was announced in the budget. Finance Minister Nirmala Sitharaman has made major changes in the new tax regime and announced no income tax on income up to Rs 12 lakh annually, which will benefit the middle class the most. Apart from this, the new tax regime will also benefit from a standard deduction of Rs 75,000.

That means those whose annual salary is Rs 12.75 lakh will not have to pay any income tax. Let us tell you, before this, there was no income tax on income up to Rs 7 lakh in the new tax regime. But there was a provision of tax on income above this in both the new tax regime and the old tax regime.

A big announcement was made in the budget

Now people whose salary is up to Rs 12.75 lakh do not have to worry about income tax. Under section 87A, there was already tax exemption on income up to Rs 7 lakh, which has now been increased to Rs 12 lakh. Let’s understand with an example… If someone’s salary was Rs 10 lakh in the last financial year, and he had chosen the new tax regime. So he would have had to pay income tax in any case, but this year he will not have to pay any tax, that is, the amount he paid as income tax last year will be saved directly this year.

Employed people can switch between the new and old regime every year, so that a better option can be chosen according to their income and expenses. But most people will now prefer to go with the new tax regime, because it has many benefits.

What will happen to those in the old tax regime from April 1, 2025?

It is worth noting that the financial year 2025-26 is starting from April 1, 2025, and this will be the first full year of making the new tax regime the default option. However, the old tax regime will still exist. If it is beneficial based on your income and deductions, then you can choose it. Especially employed people can opt for it every year while filing their ITR.

For whom is the old tax regime beneficial now?

There were no major changes in the slabs or exemptions of the old regime in Budget 2025. Income up to Rs 2.5 lakh will be tax-free, and thereafter slabs of 5%, 20%, and 30% will apply, deductions such as 80C (1.5 lakh), 80D (25,000-50,000), and home loan interest (up to 2 lakh) will remain available. If you avail HRA, home loan, or make large investments, the old regime can still be beneficial. If you live on rent, pay home loan, or incur large medical expenses, then you can think about the old tax regime.

If your income is more than 15 lakhs and you avail deductions, then the tax can be reduced in the old regime. The tax slabs may be less in the new regime, but the total tax may increase due to lack of exemptions. Investors should compare both on the basis of their income, expenses, and investments and choose the right option. Let us know the advantages and disadvantages of the new tax slab.

Question- When can taxpayers shift to the new tax regime?

Answer- Taxpayers can shift to the new tax slab from the financial year 2025-26, i.e. from 1 April 2025. If you also want to avail tax exemption on income up to Rs 12 lakh, then you can now choose this regime. Especially those in the old tax regime can shift to it, whose income is up to Rs 12.75 lakh, because now they will not have to pay even a single rupee of income tax. Those in the old tax regime will only have to choose the new tax regime.

Question- How will there be no income tax on income up to Rs 12.75 lakh?

Answer- Under the new tax system in the budget, there will be no income tax on income up to Rs 12 lakh. Earlier this limit was Rs 7 lakh. If we include the standard deduction of Rs 75,000, then there will be no tax on personal income up to Rs 12.75 lakh. However, this exemption will apply only on salary. Income from other sources, such as capital gains, will continue to be taxed.

Question- Will the New Tax Slab-2025 prove beneficial?

Answer- Finance Minister Nirmala Sitharaman says that with the change in the new tax slab, now one crore taxpayers will not have to pay any tax. This simply means that now 9 out of 10 salaried persons will not have to pay income tax. According to CBDT Chairman Ravi Agarwal, in the financial year 2024-25 itself, more than 75 percent of the people have adopted the new tax regime, and now when income up to Rs 12 lakh has also been made tax free, then after this 90 percent to 97 percent of taxpayers can join this new tax system.

Question- For whom can the old tax regime still be beneficial?

Answer- Now the old scheme will be beneficial only for those who claim deduction under Chapter 6-1. Those who come in the salary class, who get HRA, and are also paying home loan. That is, those who invest in life insurance, mutual funds, house rent, children’s school fees, home loan, medical insurance, NPS in income tax can save tax by taking advantage of deduction. But now more than 95 percent of people will shift to the new tax regime.

Question- How many people pay income tax in the country?

Answer- According to the income tax return data of assessment year 2023-24, 7.54 crore salaried persons had filed tax returns. Out of these, the annual salary of 5.89 crore persons was less than Rs 7 lakh. According to the government, according to the new exemption limit of Rs 12 lakh, the number of people exempted from tax will increase to 6.77 crore. This means that now 89.8% of the salaried people will not pay any kind of income tax. Not only this, if we keep in mind the limit of Rs 12.75 lakh, then this number will increase to 6.92 crore, due to which 91.7% of the salaried people will be exempted from tax. This decision will benefit about 1.5 crore people, whose annual income is between Rs 7 lakh and Rs 12 lakh. Now they will not have to pay any tax on their salary income.

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The new financial year 2025-26 will start tomorrow i.e. from April 1. With the start of the new year, many rules related to mutual funds, credit cards, UPI transactions, income tax and GST will change. These will affect investors, taxpayers and the common people. Therefore, if you are involved in mutual funds, credit cards, UPI transactions or income tax, then it is very important for you to know about these changes in the rules.

The Securities and Exchange Board of India (SEBI) has made changes to certain rules related to investment in mutual funds, which will come into effect from April 1, 2025. Funds raised under new fund offers (NFOs) will now have to be invested within 30 business days. If an asset management company (AMC) is unable to invest within this period, it can get a further extension of 30 days with the approval of the investment committee. If the investment is not made within 60 days, the AMC will be barred from taking fresh investments and investors will be allowed to exit without any penalty.

SEBI has introduced a new category called Specialized Investment Funds (SIFs), which will be a cross between mutual funds and portfolio management services (PMS). A minimum investment of ₹ 10 lakh will be required to invest in it. Only those AMCs whose average assets under management (AUM) has been more than ₹ 10,000 crore in the last three years can launch it.

DigiLocker Facility

From April 1, investors will be able to store and access their demat and mutual fund holding statements digitally in DigiLocker. This will reduce the problem of unclaimed assets and make it easier for the nominee to access the assets.

New tax slabs

The new tax slabs will be applicable from April 1. Under the new tax structure, the government has increased the tax-free income limit from ₹ 7 lakh to ₹ 12 lakh, which will be a big benefit to middle-class taxpayers. The new tax slabs in the new tax system will be as follows:

• Income up to ₹4 lakh – No tax
• ₹4 lakh to ₹8 lakh – 5% tax
• ₹8 lakh to ₹12 lakh – 10% tax
• ₹12 lakh to ₹16 lakh – 15% tax
• ₹16 lakh to ₹20 lakh – 20% tax
• ₹20 lakh to ₹24 lakh – 25% tax
• Income above ₹24 lakh – 30% tax

New GST and e-invoicing rules

From April 1, 2025, businesses with an annual turnover of ₹10 crore or more will be required to upload e-invoices on the invoice registration portal within 30 days. Earlier, this rule was applicable only to businesses with a turnover of more than ₹100 crore.

Unified Pension Scheme to be implemented

Unified Pension Scheme (UPS) will be implemented under the National Pension System (NPS) from April 1, 2025. This scheme will guarantee a fixed pension to central employees. Employees whose service is at least 25 years will get 50% of the average basic pay of the last 12 months as pension.

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Earlier this time limit was 24 months. With this step, taxpayers will get more time to correct the mistakes made in their ITR or add information. But what is an updated return, how is it different from revised and belated returns, let us tell you.

Revised Return

If you have already filed your tax return but later it is found to have errors, omissions or incorrect information, you can revise the return within the given time limit. This return can be filed three months before the end of the relevant assessment year. This means that for assessment year 2025-26, the deadline will be December 31, 2025, as the assessment year will end on March 31, 2026.

Let us understand this with an example. Suppose you filed your original income tax return by July 31, 2025, and later realized that you forgot to include interest income in it or forgot to claim deductions, then you can file a revised income tax return by December 31, 2025 to rectify these mistakes.

You will have to pay more tax on filing revised return

Before filing a revised return, the taxpayer must ensure that the original return has been verified. The good thing is that there is no additional fee to be paid for revising the original return. But, if adding interest income while revising your tax return increases the tax liability, then you will have to pay more tax. The good thing is that you can file revised returns as many times as you need.

Belated Returns

For an individual taxpayer, the due date for filing income tax returns for a financial year is July 31 of the following year. That is, the due date for filing income tax returns for the financial year 2024-25 will be July 31, 2025 (which falls in the assessment year 2025-26).

However, those who miss filing returns within this deadline can file a belated return under section 139(4) by December 31 of that assessment year. That is, any return filed after July 31, 2025, but before December 31, 2025 for assessment year 2025-26 will be treated as a belated return.

This much penalty for filing belated return

For filing a belated return, you may have to pay interest and a penalty of one per cent of the unpaid tax till the date of filing. According to section 234F, if the return is filed after the due date, a late filing fee of Rs 5,000 has to be paid. However, the amount of late filing fee will be only Rs 1,000 if the total income of the person does not exceed Rs 5 lakh.

If you voluntarily file your income tax return after the deadline, no late fee will be charged, provided you are not compelled to file the return. For example, under the old tax regime for the financial year 2024-25, individuals with income less than the basic exemption limit – Rs 2.5 lakh (below 60 years), Rs 3 lakh (60-80 years), and Rs 5 lakh (above 80 years) are not required to file income tax returns.

Updated income tax Return

The updated return facility, introduced in 2022, allows taxpayers to voluntarily correct any errors or omissions in the original or belated returns. Finance Minister Nirmala Sitharaman said in her Budget 2025 speech that the initiative promotes transparency and compliance, and its impact is clearly visible. About 90 lakh taxpayers have used this facility to update their income and pay additional taxes.

Note that updated returns can be submitted only after the deadline for filing original, revised or belated returns has expired. According to experts, the purpose of filing updated returns is to declare additional income and thereby pay additional tax. Updated returns cannot be revised once filed.

You cannot file an updated return for certain reasons. For example, you cannot file an updated return to claim a loss or to increase a refund. Also, filing an updated return should not reduce your tax liability. If a taxpayer misses the December 31 deadline, he can file an updated return under section S 139(8A) for a period of two years from the end of the relevant assessment year. This time period of two years has now been increased to four years in Budget 2025.

Additional tax on updated returns

The facility of filing updated returns comes with certain conditions. While availing this facility, you have to pay a certain percentage of the additional tax declared (additional tax on updated returns), which varies depending on the time limit. If you file an updated return within 12 months of the end of the assessment year, you will have to pay 25 per cent additional tax. This percentage increases to 50 per cent if filed within 24 months, 60 per cent within 36 months and 70 per cent within 48 months of the end of the assessment year.

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1. Payment of advance tax

If your tax liability is more than Rs 10,000 in the financial year 2024-25, then you have to pay the last installment of advance tax by March 15, 2025. If you miss the payment, then you will have to pay interest to the Income Tax Department under section 234C. Apart from this, taxpayers have to pay at least 90% of the tax liability to the Income Tax Department before March 31, 2025. If you do not do this, you will have to pay additional interest to the Income Tax Department under section 234B.

2. Tax-savings for financial year 2024-25

If you are using the old regime of income tax, then you can do tax-saving under Chapter VIA of the Income Tax Act. For this, you will have to make certain specific payments or investments:

(I) Section 80C: You can claim a deduction of up to Rs 1.50 lakh if ​​you invest in investment options under section 80C. ELSS, life insurance policies, ULIP, PPF, Sukanya Samriddhi Yojana, NSC, tax savings FD, etc. come under 80C.

(II) Section 80CCD(1B): The Income Tax Department allows an additional deduction of Rs 50,000 on investment in NPS. This is in addition to the deduction available under Section 80C.

(III) Section 80D: Health insurance protects against sudden financial shock in case of a medical emergency. The Income Tax Department allows a maximum benefit of Rs 1,00,000 on mediclaim. Its limit is as follows:

Self, spouse and dependent children (below 60 years of age): Rs 25,000

Self, spouse and dependent children (above 60 years of age): Rs 50,000

Either or both parents (below 60 years of age): Rs 25,000

Either or both parents (above 60 years of age): Rs 50,000

Apart from the above limit, you can also claim deduction of up to Rs 5,000 paid on health checkup.

3. Submitting Form 12B

If you are a salaried employee and you have changed jobs, then for the correct calculation of TDS of the current employer, you will have to submit the income details from your previous employer in Form 12B. If you do not do this, he may deduct less TDS than the actual. Due to this shortfall in tax deduction, you may have to pay tax to the Income Tax Department while filing income tax return.

4. Minimum deposit in PPF and Sukanya Samriddhi

If you have opened a PPF account and Sukanya Samriddhi Yojana, then it is necessary to make a minimum deposit in both every financial year. You have to make a minimum deposit of Rs 500 in PPF. The minimum deposit in Sukanya Samriddhi Yojana is Rs 250. If you do not deposit the minimum amount, then your account may become inoperative.

5. ITR U for financial year 2020-21, 2021-22, 2022-23, 2023-24

If you have forgotten to file income tax return for the financial year 2020-21 to 2023-24 or you have discovered any mistake due to which you will have to pay tax and want to revise the ITR, then you have the option of filing an updated return in Form ITR U. Through this, you can pay tax on additional income till March 31, 2025. In Budget 2025, the timeline for filing income tax has been increased to four years, which was earlier 2 years.

6. Section-43B(h)-Payments by business enterprises to micro and small enterprises

Section 43B(h) was introduced in the Finance Act 2023. Under this provision, if any payment is due to micro and small enterprises, then it is necessary to pay it within 15 days if there is no written agreement and 45 days if there is a written agreement. Failure to do so will not allow business expenditure allowance during FY2024-25. Business owners will have to reconcile their payments to micro and small enterprises and make timely payments to avoid potential losses. If you are a manufacturer or service provider, you can apply for MSME registration. With this, you can avail the benefit of timely payment from your customers under this section.

If you have not been able to complete any of the work mentioned above, then you will have to complete it by March 31.

7. Tax loss harvesting

If you have made good gains in the financial year 2024-25, then you can do some tax savings. For this, you will have to sell some of your stocks or mutual funds on which you may be incurring some loss. Then you can adjust this loss with your gains. This will reduce your final tax liability. Short term capital losses can be set-off with both short and long term capital gains. But, long term capital gains can be adjusted only with long term capital gains.

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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.

The post Income tax: Be careful if you have high income and zero expenses, you may get a notice from the IT department! first appeared on Rightsofemployees.com.

This can be related to TDS, it can be related to submitting challan-cum-statement, it can be about advance tax or updated return. The dates for all are different. Let us know the important dates related to tax in March 2025 as per the calendar of the Income Tax Department…

2 March 2025

Last date for submission of challan-cum-statement of tax deducted under section 194-IA (note that this is for tax deducted in January 2025)

Last date for submission of Challan-cum-Statement of tax deducted under section 194-IB (for January 2025)

Last date for submission of Challan-cum-Statement of Tax deducted under 194S (by Specified Person) (for January 2025)

Last date for submission of Challan-cum-Statement of tax deducted under section 194M (for January 2025)

7 March 2025

The last date for depositing TDS/TCS is February 2025. However, the amount of tax deducted by the government offices has to be deposited in the account of the Central Government on the same day if the tax is being paid without challan.

15 March 2025

Last date for depositing the fourth advance tax installment for the assessment year 2025-26.

Last date for payment of full advance tax for taxpayers falling under the Presumptive Taxation Scheme (Section 44AD/44ADA).

Last date for submission of Form 24G for government offices, if TDS/TCS is deposited without challan in February 2025.

17 March 2025

Last date for issuing TDS certificate of tax deducted under section 194-IA in January 2025

The deadline for issuing TDS certificates for tax deducted in January 2025 under section 194-IB is January 2025.

Last date for issue of TDS certificate for tax deducted under 194S (by specified person) in January 2025

30 March 2025

Last date for submission of challan-cum-statement of tax deducted under section 194-IA in February 2025

Last date for submission of challan-cum-statement of tax deducted under section 194-IB is February 2025

Last date for submission of challan-cum-statement of tax deducted under section 194M is February 2025

Last date for submission of Challan-cum-Statement of Tax Deducted under 194S (by Specified Person) is February 2025

31 March 2025

Updated Returns: Last date to submit updated income tax returns for assessment year 2022-23

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The post Income Tax Deadline: These are 6 important deadlines related to income tax, see details here first appeared on Rightsofemployees.com.

New Delhi: The Income Tax Department has warned that a fine of Rs 10 lakh can be imposed for not disclosing assets located abroad or income earned abroad in the income tax return. A fine of Rs 10 lakh can be imposed under the Anti Black Money Law.

The Income Tax Department has issued a public consultation letter for taxpayers as part of the compliance-cum-awareness campaign. It emphasizes that taxpayers should enter such information in their Income Tax Return (ITR) for the assessment year 2024-25 this year and do not hide any kind of information.

Information given in the consultancy letter

It has been clarified in the consultancy letter that it is important for the tax resident of India to keep some important things in mind last year. Under this, if they have been involved in any tax related activity, then they will have tax liability in India and it is necessary to include it in the ITR. Know what is included in this-

The post Income tax will impose a fine of 10 lakhs for hiding such property and income, Check Details first appeared on Rightsofemployees.com.

You will have to plan the tax for the financial year 2024-25 according to the old rules. There are only a few days left for the end of this financial year. Therefore, you do not have much time left for tax-savings. If you do not take steps for tax-savings before March 31, then you may have to pay a lot of tax. Moneycontrol is telling you about those methods, which will help you a lot in tax-savings.

Choosing the right income tax regime

Salaried taxpayers have the option to switch between the old income tax regime and the new regime every financial year. Changes in the tax regime can also be made while filing income tax returns. Generally, the last date for filing income tax returns is 31 July. In the old regime, there is a facility to claim deductions by investing in about a dozen options including PPF, ELSS. But, the tax rates are higher in this regime. In the new regime, there is no facility to claim most deductions. But, the tax rates are lower. Therefore, if you are a salaried taxpayer, then choose one of the new and old regimes carefully. If you are facing problems in this, then you can take the help of a tax consultant.

Claiming deduction under old regime

If you are using the old income tax regime, you can claim deduction on investment of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. Apart from this, you can claim deduction by investing an additional Rs 50,000 in NPS. You can claim deduction of up to Rs 75,000 under Section 80D of the Income Tax Act. A person can claim deduction of Rs 25,000 on health policy premium for himself and family. Apart from this, he can claim deduction of Rs 50,000 on health policy premium for his elderly parents. By combining Section 80C and 80D, you can claim deduction of Rs 2.25 lakh. If you include an additional Rs 50,000 of NPS in this, then this amount becomes Rs 2.75 lakh.

Tax Benefits on Home Loan/HRA

If you are using the old income tax regime, you can also claim deduction on home loan. Under section 24B of the Income Tax Act 1961, a maximum deduction of Rs 2 lakh can be claimed on home loan interest. People who live in rented houses can claim tax benefits on HRA. This will reduce the taxpayer’s tax significantly. HRA helps a lot in tax savings. This can be understood with the help of an example.

Suppose your basic salary is Rs 50,000. You get Rs 20,000 as HRA every month. You pay Rs 25,000 as house rent in Delhi every month. You can claim exemption on HRA of Rs 20,000 per month. Or you can claim HRA on 50% of your basic salary. In your case, it will be Rs 25,000. Or you can claim exemption on the amount left after deducting 10% of your basic salary from the rent paid. In your case, it will be Rs 20,000.

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The post Income Tax: Complete these tasks before 31st March, otherwise you will have to pay lakhs of rupees in tax first appeared on Rightsofemployees.com.

Will anything change with the introduction of the new bill

According to sources, after the implementation of the new Income Tax Bill (New Income Tax Bill 2025), the entire terminology related to the income tax rules will change. It is being said that after the new bill becomes a law, many old words will either be removed or changed. For example, after the new bill comes into force, tax year can be used in place of assessment year. There is talk of changing more similar words as well.

It will be easy for the common man to understand the rules

According to sources, as soon as the new bill becomes law, the use of many such words from the British era will also stop. These words have been in use for the last 60 years. Along with this, the language used in the income tax rules will also be simplified so that any common man can understand it easily.

Let us tell you that a few days ago, while presenting the general budget, Nirmala Sitharaman made a big announcement that now people with income up to Rs 12 lakh will not have to pay any tax. Finance Minister Nirmala Sitharaman surprised everyone by giving this tax exemption to people earning up to Rs 12 lakh. After the general budget, Nirmala Sitharaman had a special conversation with NDTV Editor-in-Chief Sanjay Pugalia. During this, she said that this decision has been taken after a lot of thought.

Saw the lifestyle of a person earning 1 lakh rupees

Finance Minister Nirmala Sitharaman had said that there is a lot of discussion in the middle class about what they got. Our focus is always on people from every sector. This time we saw what is the lifestyle of those who earn at least Rs 1 lakh? How do these people live… what kind of lifestyle do they maintain? After seeing all this, we came to the decision that those who earn Rs 1 lakh every month should be given exemption.

Referring to India’s economy, Finance Minister Nirmala Sitharaman had said that India’s fundamentals are good today and for this, PM Modi has been guiding us since long. He has been advising us to strengthen the fundamentals. He also included this aspect in it that we have to do something for the middle class who are our taxpayers, but the question was what to do. He had asked us to work on this.

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The post Union Cabinet has approved the new Income Tax Bill – Source first appeared on Rightsofemployees.com.

That is, taxpayers will not have to pay tax on annual income up to Rs 12 lakh. After this announcement, salary class taxpayers are wondering whether they will now have to file Income Tax Return (ITR)? Will such employed people whose annual income is up to Rs 12 lakh have to file ITR? Know the details here

Do I have to file ITR for income up to Rs 12 lakh?

According to the budget announcements, there will be no income tax on income up to Rs 12 lakh. But filing ITR is still necessary. If your annual income is more than Rs 4 lakh, then you will have to file ITR i.e. Income Tax Return.

New Tax Regime – New Tax rate FY 2025-26

What are the benefits of filing ITR?

Even if you do not have to pay any tax, filing income tax returns is important for many reasons. Filing returns is necessary to claim refund on excess TDS deduction. ITR is required as a financial record to apply for a bank loan or visa. It helps in carrying forward losses for the future and availing tax benefits.

Who is required to file ITR?

If your income is less than Rs 12 lakh, but you are involved in capital gain, foreign income, or foreign business, then it is necessary for you to file ITR.

New and old tax system: Which one is better for you?

New Tax Regime : It has lower tax rates but no exemptions or deductions are available.

Old Tax Regime: It offers more tax exemptions and deductions, but the tax rates are higher. The new tax system has become the default tax regime from FY 2023-24. If you do not choose any tax regime, your tax will be calculated under the new tax regime. Currently, taxpayers have the right to choose between the new and old tax regimes.

Why is it necessary to file ITR?

Filing ITR is not just a legal formality, but it helps you in financial and future planning. Filing ITR on time keeps you financially secure and legally strong.

The post Budget 2025: You don’t need to file ITR for income up to Rs 12 lakh! Government made changes in Income Tax first appeared on Rightsofemployees.com.

But there are some sources from which the income does not come under the purview of tax. Apart from income from farming, there are many other incomes which are kept out of the tax purview. According to tax experts, section 10 of the Income Tax Act mentions such tax-exempt income. There are some incomes on which you do not have to pay any tax. Let us tell you about such income on which you can save tax.

The post Non-taxable Income: 10 Types Of Income Which Are Tax Free – Key Details inside first appeared on Rightsofemployees.com.

For this reason it is also being called the budget of expectations. According to experts, the government will focus on things like health sector, GDP growth, inflation, tax slab etc. in this budget. Changes can be made in many policies to accelerate growth in the country.

Apart from this, changes can also be seen in income tax. However, what will happen in this year’s budget? This will be known only when Union Finance Minister Nirmala Sitharaman will present the country’s full budget on February 1. In this connection, let us know why this year’s budget can be memorable and what changes can be made in it?

Changes in income tax

Finance Minister Nirmala Sitharaman recently said that more than 65 percent of taxpayers in the country have adopted the new tax regime. This means that 2 out of every 3 people are filing taxes under the new tax regime. The government introduced the new tax regime in the year 2020. However, now the government’s focus is on making the new tax regime more attractive. For this reason, many changes are being made continuously in the new tax regime.

Last year, under the new tax regime, the standard deduction was increased from Rs 50,000 to Rs 75,000. In such a situation, this year the government can make the new tax regime even more attractive in the budget. According to media reports, the limit of standard deduction can be increased from Rs 75,000 to Rs 1 lakh.

At the same time, the 20 percent tax rate range is likely to be increased from Rs 12-15 lakh to Rs 12-20 lakh. This change can benefit those whose income is between Rs 15-20 lakh.

Tax Slabs

If media reports are to be believed, the government may make changes in the tax slabs in this year’s budget. It is expected that a tax rate of 30 percent may be implemented on income above Rs 20 lakh. If these changes happen, many more people will also shift from the old tax regime to the new tax regime.

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The post Budget 2025: Major Changes May In Income Tax Rules And Tax Slabs – Key Details Inside first appeared on Rightsofemployees.com.

The middle class has high hopes from the budget to be presented by Finance Minister Nirmala Sitharaman on February 1. The middle class has not got any major relief in the last two-three budgets. The middle class is expected to get a big relief from the change in tax slabs in Budget 2025.

This step can not only improve the economic condition of the people, but will also give new energy to the slowing economy. The government is considering changes in the income tax slabs, which can benefit salaried taxpayers earning up to Rs 20 lakh annually.

According to a report by Business Standard, the government is currently considering two major options. First, making annual income up to Rs 10 lakh completely tax-free. Second, bringing a new tax slab of 25% on income of Rs 15 to 20 lakh. Currently, 30% tax is levied on income above Rs 15 lakh. If the budget allows, both options can be implemented. For this, the government is ready to bear a revenue loss of Rs 50,000 crore to Rs 1 lakh crore.

The concession of the previous budget was incomplete

In 2023, the Finance Minister had increased the rebate under Section 87A and made income up to Rs 7 lakh tax-free, but for this there was a condition of giving up most of the deductions. Now under the new tax system, the tax exemption limit can be increased to make income up to Rs 10 lakh tax-free. Currently, with a standard deduction of Rs 75,000, those with income up to Rs 7.75 lakh do not have to pay tax.

The economy will get a boost

If the government increases the scope of tax exemption or brings a new slab, then it can help in promoting urban consumption, especially when the country’s GDP growth is slowing down. GDP growth in the second quarter of FY 2025 was 5.4%, which is the lowest in seven quarters. Tax concessions will increase the spending capacity of the people, which will increase demand in the market and strengthen the economy.

PwC consultant and former CBDT member Akhilesh Ranjan believes that a 25% tax slab should be introduced for those earning between Rs 15 lakh and Rs 20 lakh. This will leave more money with the middle class, which will increase the purchase of consumer durables (such as refrigerators, TVs). IASCC professor Anil K Sood says that a 30% tax on income a little more than Rs 15 lakh is unfair. He suggested that the government should provide relief to the salaried class, but without changing the existing incentives.

Focus on fiscal deficit
Professor Sood said that the government is more focused on fiscal deficit. He also said that budget is made for capital expenditure, but there is lack in spending it. For example, National Highway Authority of India (NHAI) has sufficient funds, but they are being used to repay loans.

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The post Budget 2025: Taxpayers will get big relief, this much income can be tax free first appeared on Rightsofemployees.com.

Nirmala Sitharaman Budget 2025: Finance Minister Nirmala Sitharaman will present the budget for the eighth consecutive time on February 1. This time it will be the second full budget of the third term of the NDA government led by Prime Minister Modi. In every budget, the most discussed topic is the relief in income tax and the announcement regarding farmers. In the budget presented in July 2024, the Finance Minister gave relief to the middle class by increasing the limit of standard deduction to Rs 75,000 under the new tax regime. Apart from this, many steps have been taken by the government to provide relief to the middle class on various things including income tax. Income up to Rs 7 lakh is tax free

Amidst all this, the budget presented by Finance Minister Nirmala Sitharaman in the year 2023 is discussed among the middle class till date. In this budget, the biggest relief was given to the employed middle class. Taxpayers got the most benefit from the announcement made by Finance Minister Nirmala Sitharaman regarding income tax. On February 1, 2023, Nirmala Sitharaman, during her budget speech, announced not to pay any kind of tax on income up to Rs 7 lakh under the new tax regime.

Crores of salaried class got benefit

Crores of salaried class people have got the most benefit of this income tax exemption given by the government. After this, in the budget presented in July 2024, the limit of standard deduction under the new regime was increased to 75000. With this change, people earning up to Rs 7.75 lakh every year will not have to pay any kind of tax. After this change in the rule, people were in doubt as to what would happen to those earning more than Rs 7 lakh?

What is the New Tax Regime?

The New Tax Regime was first introduced by the government in the financial year 2020-21. The tax rate in this is low but some tax deductions and exemptions have been abolished under it. Under this, a standard deduction of Rs 50,000 was included in the year 2023. After one year, it was increased to Rs 75000. Under the new tax regime, there is no tax on income of 0-3 lakhs per annum. After this, 5 percent tax has to be paid on 3 to 6 lakhs, 10 percent on 6 to 9 lakhs, 15 percent on 9 to 12 lakhs, 20 percent on 12 to 15 lakhs and 30 percent tax has to be paid on income of more than 15 lakhs.

What is the old tax regime?

In the old tax regime, no tax has to be paid on annual income up to Rs 2.5 lakh. According to this, taxpayers will have to pay tax at the rate of 5% on annual income of Rs 2.5 lakh to 5 lakh. If the annual income is 5 lakh to 10 lakh, then tax will have to be paid at the rate of 20 percent. But 30 percent tax will be levied on income above Rs 10 lakh. But under this, you get many different types of tax benefits.

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Income Tax Regime: Finance Minister Nirmala Sitharaman is going to present the budget on 1 February 2025. Before this, it is being discussed whether the government will abolish the old tax regime? Let us tell you that the new tax system was introduced during the general budget on 1 February 2020. The old tax regime included many types of deductions and exemptions, so people like it more, whereas in the new tax regime, the tax rates are low, but the benefit of deductions and exemptions is not that much.

The aim of the government is to simplify the income tax system

The Finance Minister had recently said that the government wants to simplify the income tax system, so taxpayers are speculating that the government will abolish the old tax system because the new tax system is simpler than it. In the old tax system, tax exemption is available on investment up to Rs 1.5 lakh under section 80C of the Income Tax Act. Similarly, under section 80D, there is a provision for exemption on health insurance premium, that is, under this, taxpayers can claim deduction on medical insurance premium for themselves as well as the family. This helps in reducing the taxable income.

Will the old tax regime be abolished?

Will the government abolish the old tax regime? Responding to this question, tax and investment expert Balwant Jain told The Mint, “Given the government’s biased attitude towards the new tax system, the increasing number of people adopting it and the fact that the limit of exemptions available in the old system has not been increased after the implementation of the new tax regime, do not be surprised if the Finance Minister completely abolishes the old tax system.” He further said that since the government wants you to give correct information about your income, which is the base of the new tax regime, it is likely to be implemented soon.

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The post Income Tax Budget 2025 : Will Finance Minister Nirmala Sitharaman abolish the old tax system? Why is it being discussed? first appeared on Rightsofemployees.com.

Amid preparations for the upcoming Union Budget 2025 by Finance Minister Nirmala Sitharaman, many important reforms are expected for taxpayers. There may be many big announcements regarding income tax in the 2025 general budget, especially for salary based and senior citizens, including changes in the slabs of income tax returns. Let us know what is going to be available in this budget.

Changes in income tax slabs

To make the new tax regime more attractive, the Finance Minister may revise the income tax slab rates. Experts suggest that a tax rate of 30% be imposed on income above Rs 20 lakh, so that it is in line with inflation and the current economic situation. This step may be an attempt to encourage the new tax regime.

Special discount for senior citizens

The new tax regime applies equally to all taxpayers. Experts have recommended that separate tax slabs be created for senior citizens aged 60 years and above. This could include higher exemption limits or lower tax rates, which could improve their financial situation.

Latest News:-

The post Budget 2025: Govt can make these 5 big changes in Income Tax, it will affect everything from salary to savings first appeared on Rightsofemployees.com.

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.

The post Tax Saving Tips: Zero tax on income up to Rs 12 lakh, Know how to save? first appeared on Rightsofemployees.com.

1. Belated/Revised Income Tax Return

The Income Tax Department has extended the deadline for filing belated/revised income tax returns for resident individual taxpayers. Its deadline was December 31, 2024. It has been extended to January 15, 2025.

2. Direct Tax Vivaad se Vishwas Scheme (DTSVS) 2024

The deadline for this scheme has been extended to January 31, 2025. This has given taxpayers additional time to settle their income tax related disputes. The government has launched this scheme to reduce the number of income tax related disputes.

3. Corporate Social Responsibility (CSR) 2024

The Ministry of Corporate Affairs has extended the deadline for filing Form CSR-2. It is mandatory for companies coming under the Corporate Social Responsibility Rules of the Companies Act, 2013 to file Form CSR-2. Now the deadline for this has been extended to March 31, 2025. This has given a lot of relief to the companies.

However, the Income Tax Department has not met all the demands of taxpayers and chartered accountants to extend the deadline. Many deadlines have not been extended beyond December 31, 2024.

The deadline for filing GSTR-9 and GSTR-9C under GST has not been extended. This has disappointed a large number of GST taxpayers.

The Income Tax Department has not extended the deadline for filing income tax returns for firms, companies, societies, NGOs etc. The deadline has not been extended for NRIs. If they have not filed or revised their income tax returns by December 31, 2024, then they will have to file an updated return and pay a penalty to the government in the form of additional tax.

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The post Income Tax: Big relief for taxpayers! Finance Minister has extended many deadlines for taxpayers first appeared on Rightsofemployees.com.

What has the Income Tax Department written?

The Income Tax Department has written in the post- ‘CBDT has extended the last date for filing belated/revised returns for Indian citizens for the assessment year 2024-25 from 31 December 2024 to 15 January 2025.’

CBDT extends the last date for furnishing Belated/ Revised return of income for AY 2024-25 in the case of Resident Individuals from 31st December, 2024 to 15th January, 2025.

✅Circular no. 21/2024 dated 31/12/2024 issued-https://t.co/DedADMfnGX pic.twitter.com/sBVdGZqxRF

— Income Tax India (@IncomeTaxIndia) December 31, 2024

Dispute to Trust Scheme date extended

The Income Tax Department on Monday extended the date for filing information for determining tax dues and waiver of interest and penalty under the Vivad Se Vishwas Scheme till January 31. As per the original rules of the Direct Tax Vivad Se Vishwas Scheme, 2024, taxpayers filing declaration before December 31, 2024 had to pay 100 per cent of the disputed tax demand. There is a provision to waive interest and penalty in such cases.

The Central Board of Direct Taxes (CBDT) said in a circular that the due date for determining the amount payable under the Vivaad se Vishwas scheme has been extended from December 31, 2024 to January 31, 2025.

CBDT extends due date for determining amount payable as per column (3) of Table specified in section 90 of Direct Tax Vivad Se Vishwas Scheme, 2024 from 31st December, 2024 to 31st January, 2025.

Circular No. 20/2024 dated 30.12.2024 issuedhttps://t.co/uYGf1Oh3g2 pic.twitter.com/agjuRsMHqg

— Income Tax India (@IncomeTaxIndia) December 30, 2024

According to the circular, the taxpayer will have to pay 110 percent of the disputed tax demand on declarations made on or after February 1, 2025. Taxpayers in whose cases there is a dispute / appeal has been filed can avail the benefit of this scheme.

If you also have to file your belated or revised ITR and you have not done it yet, then you still have time. And if you want to get benefit under the Vivaad se Vishwas scheme, then you have time for that too.

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The post ITR filing extended: Last date for ITR filing has been extended for these taxpayers, know till when the time limit is given first appeared on Rightsofemployees.com.

Save more tax by taking a joint home loan (Tax Saving)

If your wife also earns, then taking a joint home loan is always beneficial. This way, both of you will be able to save tax on your earnings. Because on taking a joint home loan, you can claim separate tax deductions of up to Rs 1.5 lakh on the principal repayment under Section 80C and up to Rs 2 lakh under Section 24(b). Thus, by taking a joint loan, both of you can get a total tax deduction of up to Rs 7 lakh. But remember that unless the property is in joint name, you will not be able to avail this tax benefit.

How can a wife double your income?

To double your income, open separate PPF accounts in the name of both you and your wife and invest in them. You can claim tax benefits on investments up to Rs 1.5 lakh in both the accounts. In this way, you can claim tax benefits on total investments up to Rs 3 lakh. So, your income has doubled, right? (Double your income).

NPS Account in Wife’s Name

Open an NPS (National Pension System) account in your wife’s name as well. By investing in both the accounts, you can claim additional tax benefits of up to Rs 50,000 under Section 80CCD(1B).

Health Insurance Policy in the Name of Wife or Family

You can claim tax deduction under Section 80D on the premium paid for a health insurance policy for your wife and family. Under Section 80D, tax deduction can be claimed on health insurance premium for spouse and family members. But to avail this tax benefit, both husband and wife will have to buy separate health insurance policies.

Benefit of interest deduction on wife’s savings account

Open a separate savings account in the name of your wife. Under section 80TTA, tax benefit is available on interest income up to Rs 10,000 on both the accounts.

In these ways you can save a lot of tax and more tax saving means more income. You can use this money to strengthen your financial portfolio, which can meet many of your needs in the future.

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The post 5 Smart Ways to Save Income Tax, Income can also Double first appeared on Rightsofemployees.com.

Its purpose is to help such people who are not able to give information about their income and expenditure correctly. The statement said that such people have been included in the campaign, whose taxable income or important high value transactions are recorded in AIS. But they have not filed ITR for the relevant years.

People will get the correct information through the campaign

The government has information related to people’s income and expenditure, which is called ‘Annual Information Statement’ (AIS). If people have not given correct information in their Income Tax Return (ITR), then this campaign will give them information about it and they will be able to correct it. This campaign will also focus on those people who have earned a lot of money but have not paid tax. In this way, the government is encouraging people to follow the rules of paying tax.

Information will be given through SMS and email

The statement said that the campaign also includes those people whose taxable income or important high-value transactions are recorded in AIS. But they have not filed ITR for the respective years. This initiative is part of the execution of e-Verification Scheme, 2021. As part of this campaign, taxpayers and non-filers will be informed through SMS and email where differences have been identified between the transactions recorded in AIS and the ITR filed.

Purpose to remind and guide people

According to the statement of CBDT, the purpose of these messages is to remind and guide people who have not fully disclosed their income in their ITR. So that they can take advantage of this opportunity and file revised or delayed ITR for 2023-24. The last date for filing revised delayed ITR is 31 December 2024. Tax payers can file updated ITR till 31 March 2025 for matters related to the financial year 2021-22.

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Let us know what are the deadlines in this month, so that you do not miss them.

1- Advance tax

Advance tax is paid four times a year. Those who fall under the purview of advance tax, have to file their advance tax by 15 December, otherwise they will have to pay penalty and interest.

2- Belated Income Tax

If you have not filed ITR for the previous financial year, then you have time till December 31 to file belated ITR.

3- Free Aadhaar update

If you want to make any free update in your Aadhaar card by visiting myAadhaar portal, then you have time till 14 December for this. After this, you will have to go to the Aadhaar center to change the information in your Aadhaar and will also have to pay some fees.

4- Special FD Deadline

If you want to invest money in Utsav FD for 300 days, 375 days, 444 days or 700 days, then you have to do this before 31 December. Punjab and Sindh Bank is offering many special FDs for different periods. The deadline to invest in these is 31 December.

5- Axis Bank Credit Card Changes

Some changes have been made in the terms and conditions of Axis Bank credit cards. These new changes will come into effect from December 20.

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The post 5 Financial Deadline in Dec 2024: From income tax to free Aadhaar update, these 5 deadlines are in December, see the full list first appeared on Rightsofemployees.com.

If you want to avoid penalty, then definitely finish your work before these tax related deadlines. If you are an individual, business or part of a government office, then keep in mind the tax calendar of December 2024. So that there is no problem in the new year.

The financial year in India runs from 1 April to 31 March. The calendar year runs from 1 January to 31 December. It is important to take advantage of the December deadline to avail tax benefits and deductions by 31 December. By keeping the correct dates in mind and keeping an eye on the timeline of filing your returns, you can avoid penalties, fines and hassles. Here’s what taxpayers need to complete before 31 December.

Income tax deadline in December 2024

7 December 2024

The last date for depositing the tax deducted or collected is November 2024. However, in case of tax paid without presenting the challan to the government office, it is mandatory to deposit it on the same day.

15 December 2024

Last date for submission of Form 24G – This is for reporting TDS/TCS paid by government offices without challan in November 2024.

• Advance tax payment of third installment for assessment year 2025-26.
• Last date for issue of TDS deducted certificate in October 2024:
• Section 194-IA – TDS on immovable property
• Section 194-IB – (TDS on rent)
• Section 194M – (TDS on non-professional contract services)
• Last date for submission of Form 3BB – This is for providing revised client code in transactions with stock exchanges.
• Last date for issuance of TDS certificate under section 194S ( TDS on virtual digital assets of certain persons) for October 2024.

30 December 2024

Last date for submission of Challan-cum-Statement – Details of tax deducted under sections 194-IA, 194-IB, 194M and 194S for November 2024.

Form 3CEAD Report – Last date for filing of report for reporting year 2023 (1 January 2023 to 31 December 2023) for Indian resident international group, if the parent entity of the group is not located in a country with an agreement with India.

31 December 2024

Last date for filing belated or revised income tax return – This date is for assessment year 2024-25 for all taxpayers, provided the assessment is not completed before December 31, 2024.

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The post Income Tax December Deadline: As the year ends, taxpayers have to settle many tax related matters. Check details first appeared on Rightsofemployees.com.

The Central Board of Direct Taxes (CBDT), which regulates the Income Tax Department, said in a statement that the tolerance range has been kept at one per cent for ‘wholesale turnover’ and three per cent for all other taxpayers, as last year. 

‘Wholesale trade’ will be defined as an international transaction of trade in goods or a specified domestic transaction, subject to certain conditions. The CBDT said, “Notification of tolerance band will provide certainty to taxpayers and reduce the perception of risk associated with the pricing of transactions in transfer pricing.”

The post Income Tax Department notifies ‘tolerance’ scope for wholesale business first appeared on Rightsofemployees.com.

However, if the government decides to make the annual income of Rs 8 lakh tax free, then this figure can be crossed very easily. A report has claimed that the demand for giving this exemption has started being raised. In such a situation, the government can give this relief to senior citizens between 60 and 80 years.

Around 2 crore more ITRs are expected to be filed this year

According to this research report of the Economic Department of State Bank of India (SBI), if the government has to increase the number of ITRs rapidly in the assessment year 2024-25, then it will not hesitate to take such steps. If this exemption is given to senior citizens, then the number of return filers will increase tremendously. According to the SBI report, about 2 crore more ITRs are expected to be filed this year. In such a situation, by the end of the financial year, the number of ITRs will cross 9 crores. Next year this figure can easily cross 10 crores.

Government should also make changes in TDS deduction and certificate

The report said that a total of 7.3 crore ITRs were filed in Assessment Year 2022. In Assessment Year 2024, this figure was 8.6 crores. However, the number of people filing ITR after the due date is decreasing rapidly. In such a situation, it is understood that now the discipline of filling ITR on time is increasing among the people. The Income Tax Department has also made it easier to fill ITR by simplifying the process and form. The report said that the government should improve the scope of TDS deduction. Also, changes should be made in the TDS certificate.

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The post Income Tax: Income up to Rs 8 lakh can be tax free, check details here first appeared on Rightsofemployees.com.

Budget 2024 has talked about adjusting TDS and TCS from other sources against salary TDS. The Central Board of Direct Taxes (CBDT) has issued a new form regarding this. According to the Economic Times, this information has been given through a notification issued by the CBDT on October 15. It is called Form 12BAA.

This form will be used by employees to inform their firm about tax deductions made from sources other than their salary. Such as, information about fixed deposits, insurance commission, dividend from equity shares or tax deducted in buying a car or foreign currency is included.

How will it help?

Firms usually deduct TDS from salaries as per the declaration of the employees, taking into account the investments and expenses for tax deduction. However, firms did not adjust the tax paid by the employee from other sources. Now, this will change with the new form issued by CBDT.

What will be the benefit?

Through this new form, the employee can reduce the tax deduction from his salary by providing information about TCS deposits and TDS deducted from other sources. This move will help employees deal with cash flow problems and spend or save their income.

What changed?

The new law to inform the firm about TDS and TCS deducted from other sources has come into force from October 1 this year. The employee can inform his firm about the TDS deducted from other income sources or TCS deducted while making any big expenditure. Earlier there was no specific mechanism to give this information to the firm. Now the new form issued by the department will help the employee to give this information to the firm.

What is the difference between TDS and TCS?

TDS and TCS are two ways of collecting tax. If a person has earned more than a certain limit, then a certain amount is deducted from that income. This amount deducted as tax is called TDS. TCS is the tax that the seller collects from the buyer. In both these cases, there is a need to file a return.

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The post Income Tax: New Form To Reduce TDS From Salary – Know all details here first appeared on Rightsofemployees.com.

Income Tax VS TDS: Do you know what is the difference between Income Tax Return and TDS (Tax Deducted at Source)? Many people are confused about this. So today we will tell you about both of them. Actually Income Tax and TDS are two important factors of the taxation system which play an important role in revenue collection and compliance. But both work under different systems.

To understand the tax system better, it is important to understand the difference between income tax and TDS. Here we are going to tell you in detail about the difference between these two.

Income Tax: Personal Taxation

Income Tax is a very common term in personal finance, and it is a direct tax that the government levies on a person’s income. This tax is levied on various sources of income, including salary, business profit, capital gains and other means of earning. The responsibility of calculating his income (Income Tax Calculator) and paying tax accordingly lies entirely with the taxpayer, who has to follow the tax slabs and rules made by the government.

TDS: Tax Deduction at Source

In contrast, Tax Deducted at Source (TDS) is a method by which the government collects tax directly from the income source. It is a form of withholding tax in which a fixed amount is deducted as tax before any salary, interest, rent or consultancy fees is paid to an individual or organization and is immediately remitted to the government. TDS simplifies the process of collecting tax for the government and also helps prevent tax evasion.

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Who has to file income tax return?

Filing Income Tax Return (ITR) is mandatory for those individuals whose annual income is more than Rs 2.5 lakh under the old tax regime or Rs 3 lakh under the new tax regime. For senior citizens aged 60 to 80 years, this limit is Rs 3 lakh, while for those aged 80 years and above, this limit is Rs 5 lakh.

When is TDS deducted on income?

On the other hand, TDS is a process in which a part of your income is deducted at the source. This includes income from salary (TDS on Salary), income from investments and rent, income from winning contests, lottery, gambling, prize money, and many other similar incomes. TDS is applicable on commissions received from insurance, payments made to contractors, brokerage, commissions and fees for professional services. Apart from this, TDS is also levied on payments made from National Savings Scheme and many other types of income sources.

Understanding these limits and the sources of income on which TDS is applicable while filing Income Tax Returns is important to comply with tax rules and avoid penalties.

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CBDT extends deadline for filing tax audit report for these taxpayers till Nov 10: What you need to know

The post What is the difference between Income Tax and TDS? Every taxpayer should know this important thing first appeared on Rightsofemployees.com.

The Central Board of Direct Taxes (CBDT), working under the Finance Ministry, announced this on October 7. This decision of CBDT will provide relief to those special category of taxpayers who have not yet filed their Tax Audit Report.

What is the new date?

The last date for filing the report for taxpayers filing audit reports was 30 September 2024. But the Central Board of Direct Taxes had extended it to 7 October 2024, so that taxpayers who have not submitted their audit reports can easily submit them. However, despite this, many taxpayers have not been able to file the audit report yet. After this, CBDT has taken a decision in the interest of taxpayers and has decided to extend the last date for tax audit report to 10 November 2024.

These taxpayers will not get the benefit

Let us tell you that the benefit of this extended date will be available only to trusts, institutions, funds and taxpayers filing audit reports through Income Tax Form 10B/10BB. At the same time, taxpayers with business or professional income who are subject to tax audit under section 44AB will have to submit their audit reports using Form 3CD, 3CA and 3CB. The extended deadline for these taxpayers was 7 October 2024.

What is the method to file 10B form?

Step-1: Taxpayer can assign Form 10B (AY 2023-24 onwards) to CA through e-file form mode.
Step-2: CA can check the assignment in “For Your Action Tab” under Work List.
Step-3: CA can accept or reject the assignment.

Step-4: If the CA accepts the assignment, he has to upload the JSON with PDF attachment under offline mode of filing.
Step-5: Once the CA submits the JSON with valid attachments, the taxpayer has to accept/reject the form uploaded by the CA through the “For Your Work” tab of the worklist.

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The post CBDT extends deadline for filing tax audit report for these taxpayers till Nov 10: What you need to know first appeared on Rightsofemployees.com.

The government had in 2019 set the limit for filing appeals in the Income Tax Appellate Tribunal (ITAT) at Rs 50 lakh, Rs 1 crore in high courts and Rs 2 crore for the Supreme Court. The Central Board of Direct Taxes (CBDT) also said that the monetary limit with respect to filing appeals/SLPs (special leave petitions) will apply to all cases including those related to TDS/TCS.

It said, SLPs/appeals pending in the Supreme Court, High Courts and Tribunals which are below the prescribed limit should be withdrawn. CBDT said, “As a step towards managing litigation, it has been decided by the Board to revise the monetary limits for filing appeals in income tax cases…”

The circular said appeals should not be filed merely because the tax effect in a case exceeds the prescribed monetary limit, but should instead be decided on the merits of the case. “The concerned authorities should keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers with regard to their income tax assessments while taking decisions regarding filing of appeals,” it said.

Finance Minister Nirmala Sitharaman in her Budget speech on July 23 proposed to increase the monetary limit for filing appeals related to direct tax, excise duty and service tax in tax tribunals, high courts and the Supreme Court to Rs 60 lakh, Rs 2 crore and Rs 5 crore respectively.

Rajat Mohan, executive director of accounting and consulting firm Moore Singhi, said that these higher limits for taxpayers reduce the risk of lengthy litigation and promote quick resolution at the initial stages. Sandeep Jhunjhunwala, partner at business consulting firm Nangia Andersen LLP, said that this amendment in the monetary limit will significantly reduce the burden on judicial bodies, which will lead to more efficient resolution of large tax disputes.

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Disputes continue in various legal forums over 2.7 crore direct tax demands amounting to about Rs 35 lakh crore. Finance Minister Nirmala Sitharaman had said in her budget speech that the government will continue its efforts to simplify taxes, improve taxpayer services, provide tax certainty and reduce litigation while increasing revenue.

The government had introduced the first phase of the ‘Vivaad se Vishwas’ scheme for cases under direct taxes in 2020. About one lakh taxpayers took advantage of this scheme and the government got a tax of about Rs 75,000 crore.

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Refunds come within about a month of filing ITR. If your refund is also due and you have not received it yet, there can be many reasons behind it. It is possible that you have not filed ITR correctly. Keep in mind that refund is available only when the Income Tax Department processes your ITR and sends you a notice confirming it. This notice is issued under Section 143(1) of the Income Tax Act, 1961.

The amount is deposited directly in the account

After the entire process is completed, the refund amount issued by the Income Tax Department is deposited directly in the taxpayer’s bank account. However, this amount goes to the same bank account which is linked to the taxpayer’s account on the Income Tax website. In such a situation, it is important that the bank account number and IFS code (IFSC) are filled correctly. Go to the Income Tax Department website and login to your account and check whether the bank account details are correct or not.

How many days does it take to get a refund?

To get a refund, it is necessary to verify your tax return online. Usually, it takes 4 to 5 weeks for the refund to be credited to your account. If you have not received the refund within this time, then email the income tax department and get information about it. Apart from this, you can also track the status of your refund by visiting the e-filing website.

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These can be 5 reasons for not getting refund

1. If your PAN is inactive, then you will not get a refund. In such a case, you will see a warning message to link your PAN with Aadhaar.

2. If the bank account details are wrongly entered in your account on the Income Tax website, then also you will not get a refund. In such a case, check all the bank related details like account number, IFSC code, name etc. once again.

3. If your bank account registered in the Income Tax website is closed or suspended due to KYC or any other reason, then also the refund amount will not come in the bank account.

4. If the bank account you have given to the Income Tax Department is different from the savings account or current account, then also the refund amount will not come in the account.

5. Income Tax found in the investigation that there is a mistake in the return you had filed. For correction in this, the department had also sent you an email on the registered email ID, but you did not pay attention to it. Unless the correct return is filed, refund will not be given.

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The post ITR Refund: Haven’t received refund yet after filing ITR? Know the 5 reasons why it may be stuck, check now first appeared on Rightsofemployees.com.

Apart from this, if you want to take advantage of any government scheme, invest in bank FD or any other scheme or do UPI transaction, no work can be done without a bank account. In India, a person can also run multiple bank accounts simultaneously, there is no rule about this. But do you know how much money can be kept in a bank account and how much cash can a person deposit at one time? Is there any limit to this? Know about this here-

How much money can you keep in your account?

According to the rules, you can keep any amount of money in your savings account. There is no limit for this. But if the amount deposited in your account is more and it comes under the purview of income tax, then you will have to tell the source of that income. Apart from this, there is a limit for depositing cash and withdrawing cash by going to the bank branch. But through cheque or online medium, you can deposit any amount from Rs 1 to thousands, lakhs, crores in the savings account.

How much cash can I deposit?

The rule says that if you deposit Rs 50,000 or more in cash in the bank, then you will have to provide your PAN number along with it. You can deposit up to Rs 1 lakh in cash in a day. Also, if you do not deposit cash in your account regularly, then this limit can be up to Rs 2.50 lakh. A person can deposit a maximum of Rs 10 lakh in cash in his account in a financial year. This limit is overall for taxpayers having one or more accounts.

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If you cross this limit then you will be on the radar of the IT department

If a person deposits more than Rs 10 lakh in cash in a bank account in a financial year, then the bank has to inform the Income Tax Department about it. In such a case, the person has to tell the source of this income. If the person is unable to give satisfactory information about the source in the Income Tax Return, then he can come under the radar of the Income Tax Department and an investigation can be conducted against him. If caught, a heavy fine can be imposed.

How much fine can the IT department collect

If a person deposits more than 10 lakh cash in the bank and is unable to provide any information about the source of that income, then 60 percent tax, 25 percent surcharge, and 4 percent cess can be levied on that deposit amount. However, this does not mean that you cannot make a cash transaction of more than 10 lakh. If you have proof of this income, then you can deposit cash without any worry. However, from the point of view of benefit, instead of keeping so much money in your savings account, it is better to convert that amount into FD or invest it in some other place, from where you can get better returns.

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The post Cash Deposit Limit in Saving Account as per Income Tax first appeared on Rightsofemployees.com.

Income Tax Refund: Refund has not come after filing Income Tax Return (ITR) . This time many taxpayers are facing this problem. If you are also among those who are waiting for refund after filing your ITR, then there is no need to worry. Delay in getting refund is a common problem, which troubles many taxpayers. It is important to know when the refund money should come and what can be done if there is a delay in the refund so that you can exercise your rights and get your refund money. Let’s know.

Due to this there may be a delay in getting the refund

CA Adarsh ​​Jha, MAG Auditor, GMR Group, said that if the taxpayer has not completed the verification process of his ITR through Electronic Verification Code (EVC) or by submitting signed ITR-V to the Central Processing Centre (CPC), the refund process may be delayed, and the taxpayer has to e-verify the return within 30 days from the date of filing the return.

Refund may also be stuck due to these reasons

Discrepancies in ITR, such as difference in income, error in bank account information, error in PAN details etc. can also cause delay in refund. Apart from this, non-matching of income with 26AS and AIS, incorrect bank account information, error in PAN details can also cause delay in refund. He said that nowadays the Income Tax Department uses advanced tools to verify the details in the Income Tax Return before issuing the refund.

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What to do now if there is a delay in refund?

Adarsh ​​Jha said that if the refund is delayed, the first thing you should do is check the status on the Income Tax e-filing portal. This will let you know the current stage of processing and any issues that need your attention. If the delay is too much and unexplained, you can lodge a complaint through the ‘e-Nivaran’ section on the e-filing portal or contact the CPC helpline for updates. If a refund fails due to mismatch of bank account, first update the bank details in the Income Tax portal and then request for re-issue of tax refund.

Request a refund to be issued this way

How to request for re-issue of income tax refund? Regarding this, CA Adarsh ​​Jha told that log in to the ITR e-filing portal and go to the ‘Services’ tab and click on the ‘Refund Reissue’ button. After this a new webpage will open, click on the ‘Create Refund Reissue Request’ option there. After this, select the ITR for which you want to re-issue the refund. After this, select the bank account in which you want to receive the refund. If your bank account is not verified, then first it has to be verified and then go ahead and choose Aadhaar OTP, EVC or DSC to verify.

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The post Income Tax Refund did not come after filing ITR, know step by step what to do now? first appeared on Rightsofemployees.com.

Income Tax Refund: Rahul, who works in the IT sector, had filed ITR on time this year as well, like every year. Last year his tax refund came after a week, but this time it has not been processed yet. Now Rahul is worried. Actually, filing ITR timely does not mean that you will get your refund soon. There are many steps in the tax refund process. If something goes wrong in any step, then the entire process may get delayed.

This can cause delay in tax refund

You are eligible for tax refund when the tax already paid by you is more than your actual tax liability. The Income Tax Department calculates it after considering all deductions and exemptions during assessment. Income Tax Return (ITR) refund can be delayed due to many reasons. If the taxpayer has not done his ITR through Electronic Verification Code (EVC) or through Central Processing Center (CPC), then his refund can be delayed.

Income figures not matching is also the reason for delay

Apart from this, errors in ITR details like non-matching of income figures, wrong bank account information or error in PAN details also cause delay in ITR processing and refund. In cases where the ITR involves complex income sources or various deductions, such ITRs need to be proceeded manually. This is the reason why processing and refund of such ITRs can usually take more time.

Apart from this, delays can also occur due to backlog in CPC. Especially during peak filing or due to non-compliance of the notice or request of the Income Tax Department by the taxpayer. Therefore, any taxpayer should try to file his return well before the stipulated time limit.

Also Read- Belated ITR: What is the process for filing belated income tax return, what is the penalty?

What to do in case of delay in ITR refund?

If your refund is also getting delayed, then you should first check the status on the Income Tax e-filing portal. This will give you information about the current status of processing. If the reason for the delay in your refund is not clear, you can register a complaint by going to the ‘e-Nivaran’ section on the e-filing portal or you can also contact the CPC helpline for updates. It is important to respond quickly to any notice or request from the Income Tax Department as delay in your response may increase the processing time.

How to raise the issue of tax refund

If your refund process is stuck for a long time, then you may have to file a re-issue request for refund. How can you do this? Let’s know-

• First of all go to the ITR e-filing portal and login with your credentials.
• After this go to the ‘Service’ tab and click on the ‘Refund Re-issue’ button.
• Now a new webpage will open. Click on ‘Refund Reissue Request’. Now select the ITR here and you want to request for re-issue of refund.
• Here select the bank account where you want to receive the refund. If the selected account is not verified then you have to verify it first.
• Now click on Proceed and choose a verification method Aadhaar OTP, EVC or DSC. Complete the process after receiving the OTP.

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The post Income Tax Refund: Still waiting for your income tax refund? here’s what you need to do first appeared on Rightsofemployees.com.

Belated ITR: If a taxpayer is unable to file a return by the last date for filing income tax returns, then he can file a belated return. Income Tax has made this provision keeping in mind such taxpayers, who are unable to file returns by the stipulated time due to some compulsion. There is a penalty for filing belated returns. Along with this, interest has to be paid on tax. It is important to know about it properly before filing belated returns.

Who can file belated returns?

The last date for filing Income Tax Return is generally 31 July for individual taxpayers. The deadline for filing income tax returns for the financial year 2023-24 was 31 July, which has passed. If a taxpayer has not filed the return by 31 July, then he can file a belated return.

Till what date can a belated return be filed?

Belated returns can be filed till 31 December of the respective financial year. This means that if you have not filed the return by 31 July this year, then you can file it till 31 December.

How much is the penalty?

Penalty is levied under section 234F of the Income Tax Act for filing a belated return. If the taxpayer’s income is less than Rs 5 lakh, then the penalty is Rs 1,000. If the taxpayer’s income is more than Rs 5 lakh, the penalty is Rs 5,000. Apart from this, if tax is due on the taxpayer, then under section 234A, he will have to pay interest on it.

Will loss carry forward be allowed?

On filing a belated return, certain losses like business loss and capital loss are not allowed to be carried forward to the subsequent years. However, losses under the head of ‘income from house property’ can be carried forward.

Is revised return allowed?

If you feel that you have made a mistake in the belated return, you can file a revised return till December 31.

Also Read- ITR Refund: Have you not received your income tax refund? Know what you need to do

Will the return have to be verified?

After filing the belated return, it will be necessary to verify it. Taxpayers can verify it online through means like Aadhaar OTP, netbanking. Another way is that they can sign a copy of ITR-V and send it to the Centralized Processing Center (CPC) within 120 days.

What is the process of filing a belated return?

The process for filing a belated return is the same as that of filing a normal return. You have to go to the e-filing portal of the Income Tax Department. Then you have to log in with your user ID and password. Then you have to select the ITR form based on your source of income. Then you have to select the correct assessment year. You have to enter your income details, deductions and tax. After paying the tax, the return has to be submitted. After that it has to be verified.

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The last date for filing ITR was 31 July. According to the information given by the Income Tax Department, 7.28 crore returns have been filed till the last date. After filing ITR, tax payers wait for their refund. Because now after July, the month of August is also going to end, so everyone is eagerly waiting for the refund.

Income Tax Refund Delayed: If you are still waiting for the refund even after filing ITR on time, then this information is going to be useful for you. Here you need to understand that there can be many reasons for the delay in getting income tax refund. These reasons are listed here-

Also Read:- Income Tax Notice: Did you also get 143(1) intimation notice? How to answer? Know everything

Why is there a delay in getting income tax refund?

• ITR not verified
  Not only filing ITR, but also verifying ITR is important. It is necessary to verify ITR using Aadhaar OTP. If this is not done, there may be a delay in refund.
• Error in account details
  If you have given wrong information about your bank account, then this can also be the reason for delay in refund. This can happen due to bank account number, IFSC code, micro code or wrong name.
• Filing wrong return
  If you have filed ITR return but any kind of information in the return is incomplete or wrong, then a notice is received under section 139 (9). 15 days are also given to correct this mistake. In such a situation, this can also be the reason for delay in refund.
• High amount
  If you have filed ITR and are now waiting for refund, then high amount of refund can be the reason for delay. Income Tax Department closely examines the refund of high amount. Only after this the refund is processed.

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Accordingly, grants/subsidies received from the central government; fees/subscriptions including RTI fees, tender fees, sale of scrap, PVC cards; authentication, enrolment and update service charges; fixed/term deposits; and interest on bank deposits earned by the UIDAI will be exempt from income tax.

There will be no tax for five years

A notification to this effect was issued by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance. It said that this notification will be applicable for the assessment years 2024-2025, 2025-2026, 2026-2027, 2027-2028 and 2028-2029.

What is UIDAI?

UIDAI is a statutory authority established under the provisions of the Aadhaar Act, 2016 to ensure compliance with the Aadhaar Act and to make rules and regulations consistent with the Act.

This notification will be effective subject to the condition that UIDAI will not engage in any commercial activity; the nature of activities and specified income will remain unchanged throughout the financial year.

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The Finance Minister has increased the standard deduction by 50 percent along with the change in the tax slab under the New Tax Regime. Now under the new tax regime, you can claim Rs 75,000 instead of Rs 50,000 as standard deduction. Apart from this, now 10 percent tax will have to be paid on income of 7 to 10 lakhs. Earlier, 10 percent tax had to be paid on income of 7 to 9 lakhs.

After the increase in standard deduction, under the New Tax Regime, you will not have to pay a single rupee tax on an income of Rs 7.75 lakh. But if your income is more than this i.e. Rs 10.50 lakh, can you save income tax? The answer is yes, you will not have to pay a single rupee tax on an annual income of Rs 10.50 lakh. If you also want to save income tax, then for this you will have to select the Old Tax Regime.

There will be a direct benefit of Rs 49,400.

In the old tax regime, you can claim many types of exemptions. On the other hand, if you go to the new tax regime, then you will have to pay 15 percent tax on this income. Under this, 15 percent tax has to be paid on income of 10 to 12 lakhs. After standard deduction, the tax on this income becomes Rs 49,400. Let’s know how you can save this tax in the old tax regime?

No tax on income up to Rs 2.50 lakh

Under the old regime of income tax, there was no tax on income up to Rs 2.5 lakh. But here we will tell you how you can avoid income tax liability on income up to Rs 10.5 lakh. That is, you will not have to pay even a single rupee tax on income up to Rs 10.5 lakh. Let’s know how?

Also Read: ITR Filing: Deadline for filing ITR extended to 31 August? Income Tax Department itself told the truth

1. If your annual income is Rs 10.50 lakh, then how can you avoid paying income tax? Here we will tell you the complete calculation of this. On this income, you will first get a discount of Rs 50 thousand under standard deduction. Due to this, your taxable income of Rs 10.50 lakh is reduced to Rs 10 lakh.

2. Now out of the income of Rs 10 lakh, you can claim savings of up to Rs 1.50 lakh under Section 80C of the Income Tax Act. Under Section 80C, you can claim investments made in LIC, PPF, Sukanya Samriddhi children’s tuition fees, mutual funds (ELSS) and EPF. Under this, you can also claim the principal amount of home loan. In this way, your taxable income is reduced to Rs 8 lakh 50 thousand.

3. After this, you can claim Rs 2 lakh under Section 24B of the Income Tax Act. You get this exemption on the interest amount of home loan. After claiming these two lakh rupees, your taxable income is reduced to Rs 6.50 lakh.

4. After this, you can claim medical health insurance up to Rs 25000 under section 80D for tax saving. If your parents are senior citizens, then you can claim Rs 50000 for their health insurance. In this way, if you claim a premium of Rs 75000, then your taxable income will be reduced to Rs 5.75 lakh.

5. Now you can invest Rs 50,000 in National Pension System (NPS) to reduce your tax liability. You can claim this under 80CCD (1B). That means now your taxable income here has come down to Rs 5.25 lakh. You can reduce it even further.

6. After this, if you donate Rs 25,000 to any organization or trust, you will get the benefit under Income Tax Section 80G and your taxable income will be reduced to Rs 5 lakh.

7. On income between Rs 2.50 lakh and Rs 5 lakh, tax of Rs 12,500 is levied at the rate of 5%. But the government gives you a rebate on this. In this way, your tax is reduced to zero rupees.

Let us tell you that under the old tax regime, there is a provision of 5% tax on income of Rs 2.5 lakh to Rs 5 lakh. After this, there is a provision of 20% tax on annual income of Rs 5 to 10 lakh. Apart from this, there is a tax liability of 30% on annual income of Rs 10 lakh and above.

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The important provision in the budget for the people who earn by renting out the house (Rental House Income) is that now the income earned by renting out the house or flat will have to be declared as income from housing property while filing income tax (Income Tax Payers). Now it cannot be shown as business income.

While presenting the budget, Finance Minister Nirmala Sitharaman mentioned an important amendment in the Income Tax Act. In which it was clarified that the income earned from renting out residential property should be shown under “Income from house property” instead of income from business or any profession.

Also Read: Fastag New Rules: One mistake and you will have to pay double toll, NHAI issued guidelines

Now you will not be able to save tax by showing wrong income

Currently, taxpayers show their rented house income as profit from business or profession in a wrong manner to reduce it. The Finance Minister had said that due to this their liability is getting reduced. This provision allows some property owners to show rent income as business income, so that deductions like maintenance cost, repairs and depreciation can be claimed. By misrepresenting the income in this manner, taxpayers reduce their taxable income significantly. Due to which they have to pay less tax.

Income from house is no longer business income

In her budget speech, Finance Minister Nirmala Sitharaman proposed that the central government will amend Section 28 to clear this situation. After which taxpayers will not be able to show income from rent as business income. Business or profession and house property will be payable under the income head. This new rule is likely to increase the tax liability of such people. The Finance Minister said that this amendment will be effective from April 1, 2025, next financial year. This new rule will prevent income tax payers from paying less tax in the name of wrong income.

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Even in the interim budget presented at the beginning of the year, taxpayers were demanding to increase the limit of 80C. This demand is also from the budget to be presented today. If sources are to be believed, Finance Minister Nirmala Sitharaman can increase the limit of 80C to Rs 2 lakh in the budget. Now it remains to be seen what exemptions taxpayers can get from the budget.

What is section 80 in income tax?

Most taxpayers choose Section 80C as their preferred tax saving option. Under Section 80C of the Income Tax Act 1961, if individuals opt for the old tax regime, they can avail a maximum deduction of ₹1.5 lakh for the financial year 2024-25. Those who opt for the new tax regime cannot avail this deduction.

Will the 80C limit increase after 10 years?

Under Section 80C, taxpayers are allowed a maximum tax deduction of Rs 1.5 lakh. However, taxpayers can invest in one or more savings. They can save their tax through this. Now it is expected that in the first budget of the third term, the government may increase the limit of 80C to Rs 2 lakh.

The limit of 80C was increased in 2014

In 2014, the then Finance Minister Arun Jaitley had increased the Section 80C benefit limit to ₹1.5 lakh per annum. This change was among the major reliefs given in the government’s first budget. However, there has been no change in the 80C limit since then. The 80C limit has remained the same for 10 years since the last increase in 2014. Every year, many taxpayers hope that the Finance Minister will increase the Section 80C limit in the Union Budget 2024. Many believe that the 80C limit has not increased in line with income and costs, due to which many taxpayers use the entire 80C limit to save tax.

Why should the 80C limit be increased?

A person’s taxable income is calculated by subtracting 80C deductions from his total income. Any change in the Section 80C deduction limit directly affects a person’s taxable income, which will directly benefit taxpayers. Many people’s costs have increased, salaries have increased, but there has been no increase in the benefits of Section 80C. Due to this, many people take full advantage of 80C. That is why increasing the limit in Section 80C is always the first priority for taxpayers before the budget every year.

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The Income Tax Department has issued a warning about the fraud happening with people waiting for refund. The department has said that people should not fall into any trap and save themselves from this fraud.

Taxpayers should avoid fake pop-up messages

The Income Tax Department on Wednesday informed in a post on the social media platform X that taxpayers should avoid fake pop-up messages. The department has advised them not to fall prey to such messages. Cybercriminals have used income tax refund as a weapon to steal money from taxpayers’ bank accounts. These people want to obtain bank account information by sending fake messages. The Income Tax Department has issued an advisory to taxpayers after several cases of refund fraud have surfaced from across the country.

Also Read: New Metro line: Mumbai first underground aqua metro line starts on 24 July. check stations to time table details

People are being cheated in this way

According to the Income Tax Department, if you are waiting for a refund, then you need to be a little careful. The messages that cyber thugs are sending say that the refund has been approved in your name. This money will be credited to your account soon. Verify your account number or update your bank account details by going to the link given below. The Income Tax Department has appealed not to respond to such messages.

Kind Attention Taxpayers!

🚨 Don’t fall for fake pop-up messages! #StaySafeOnline#CyberCrimePrevention pic.twitter.com/USapVlhwnF

— Income Tax India (@IncomeTaxIndia) July 17, 2024

Last date for filing returns is 31st July

According to the department, this link takes the taxpayers to a fake website. An OTP is sent there to update the account. As soon as the OTP is entered, the scammers withdraw money from the bank account. The Income Tax Department said that it does not send such messages or emails. The refund is sent directly to the taxpayers’ bank account. Its information is given through e-mail or message on mobile number. The last date for filing returns is July 31, 2024. All of you should file the return before this date to avoid penalty.

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Speaking to ET, Ankur Mittal, co-founder and CTO of CardInsider.com, said, “Only a few credit cards in India offer reward points on income tax. A few select cards, such as HDFC BizBlack and HDFC BizPower credit cards, offer reward points for tax payments. These cards offer savings of up to 16 per cent and 8 per cent on income tax and GST payments respectively.”

Milestone rewards on these credit cards

Mittal further said that apart from these, you can also use other credit cards SBI Vistara Cards/IDFC Vistara Card which also offer milestone rewards on payment of income tax such as SBI Vistara Card/IDFC Vistara Card where you can get complimentary flight tickets on reaching the milestone.

Also Read: IRDA: Insurance Amendment Bill may be introduced in Budget 2024, you will get these benefits

July 31 is the last date to file ITR.

If you have not filed income tax return for the financial year 2023-24 (AY 2024-25), then hurry up. Actually, July 31 is its last date. After this, a fine will be charged by the Income Tax Department. If someone does not file ITR even by July 31, then he is given a chance to file belated return till December 31 with a penalty.

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This year the last date for filing income tax return is 31st July. If you are also preparing to file your return then it is important for you to know which income is taxed and which is not. By knowing this, you will not only be able to file your return correctly but will also save tax. Today we are telling you about those 10 incomes on which you do not have to pay income tax. Let us know about them.

1. Agricultural Income: Income from agriculture in India is completely exempt from income tax. This exemption is not only on the sale of crops, but it also includes rent received from agricultural land or buildings and profit earned from buying or selling agricultural land.
2. Interest income from NRE accounts: NRE accounts offer benefits such as tax-free interest on NRE deposits. NRIs can also transfer funds to their native place through NRE accounts.
3. Gratuity: In the private sector, employees who receive gratuity amount up to Rs 20 lakh on retirement are not required to pay income tax. 

Also Read: Why should the Finance Minister increase the 80C limit in Budget 2024?

1. Capital gains: Some capital gains are also tax-free. Individuals who receive compensation for urban agricultural land do not have to pay income tax.
2. Profit from Partnership Firm: Under the Income Tax Act, the income of a partnership firm is taxed at the entity level. Partners working for the firm do not pay income tax as they get a share of the profit after paying taxes. 
3. Scholarship: Students who receive scholarships from government and private institutions for their studies are exempted from income tax.
4. Provident Fund: Provident funds, mandatory savings schemes for companies registered under the Companies Act, 1956 in India, grow with age and become tax-free upon your retirement from the job. Employee Provident Fund offers tax-free returns, provided the employee has actively contributed for more than 5 years, even if they have changed employers during this period.
5. Tax-free pension: Pensions from certain organisations, such as the UNO, are exempt from tax. Family pensions received by dependents of employees are also tax-free.
6. Voluntary retirement: The amount received on voluntary retirement before retirement is exempt from tax up to Rs 5 lakh. Gifts received from relatives or on the occasion of marriage are also exempt from tax. 
7. Allowances or any compensation: Certain allowances are exempt from tax for any individual in India. For example, the foreign allowance provided by the Government of India to its employees working abroad is tax-free. Additionally, compensation received from Public Sector Undertaking (PSU) companies on voluntary or retirement is also exempt from tax. 

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The government had also implemented a new regime to save tax. But, the problem in the new regime is that there is no tax exemption on any investment. As soon as your salary goes above 7.5 lakhs, tax starts getting deducted. We are telling you such a method, where your salary up to 10 lakhs will be completely tax free even in the new regime.

Let us tell you that in the new regime, tax exemption is still available for some things. If you have taken any allowance for travel, transport and office work, then tax exemption can be claimed on that too. We will tell you about one such allowance, by adopting which tax can be saved. Private companies give such allowances to their employees and tax can be easily claimed on it.

Also Read: How to apply online for Learner DL, know the step by step process today

How to get tax exemption:

In the income tax law, the allowance received for office expenses is kept out of the scope of tax. This includes fuel and mobile, broadband allowances. After the work from home ends, companies may not give broadband allowance, but they give fuel allowance for commuting to and from the office. If you have a car or bike, then this type of allowance can be claimed.

What you have to do:

In most private and MNC companies, a part of the salary of the employees is also for fuel reimbursement. You can talk to your HR about this. If your company also has such a policy, then your HR will revise the salary and can put a big part of it in fuel allowance. You will get tax exemption on this entire amount and if any TDS is being deducted by the company, then that deduction will stop.

How much discount can be given

? Every company has its own rules and limits. But, on an average, employees who travel by car get up to Rs 20,000 as fuel expenses. This amount becomes Rs 2.40 lakh in a year. Now if your cash in hand salary is around Rs 10 lakh, then after deducting this amount from it, your salary comes down to Rs 7.5 lakh. As soon as this happens, you become out of the scope of income tax under the new tax regime.

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Every employed person tries at some point of time to reduce his income tax liability, and the government also provides many deductions and exemptions in income tax so that taxpayers can save money. One such exemption is the exemption in House Rent Allowance, which is called HRA Exemption or HRA Rebate.

House Rent Allowance (HRA) is a head that can help any taxpayer a lot in saving income tax, and many salaried people also use it. To save income tax, many salaried people pay monthly house rent to their parents and then get exemption on that amount, but it is very important for such people to keep some things in mind.

Those who pay rent to their parents should remember…

The most important thing in this context is that the house for which the salaried taxpayer is paying or claiming to pay the rent, that house (i.e. property) should not be in his own name. As per the rules, the house should always be in the name of the landlord (to whom the rent is being paid). So, keep in mind, it is wrong to show your mother or father as the landlord collecting the rent while living in your own property.

Also Read: ITR Filing: You can file income tax return till July 31, 2024 without penalty, these documents are required

Landlords must also file ITR…

Another thing to remember for a salaried person who is claiming or going to claim HRA Rebate is that the parent, whoever is shown collecting the rent, should include the rent amount in his or her income and file income tax return. In fact, under section 10 (13A) of the Income Tax Act, any salaried person is exempted from income tax on the lowest amount – 50 percent of his basic salary, the amount received as HRA, or the amount remaining after deducting 10 percent of the basic salary from the actual rent paid. Therefore, many salaried people get exemption by giving rent receipts in the name of their mother or father. The most important thing to remember for such people is that it is necessary for the mother or father to show this rent amount in their income and pay tax on it.

Always keep documentary evidence ready…

There is one more important thing – always keep documentary proof of the rent paid to your parents ready. That is, you must have the rent receipts, and it would be better if you always pay the rent online, so that your and the landlord’s bank account statements can also be presented as proof.

How much will the mother or father’s income be recorded…?

If you are claiming HRA Rebate by paying house rent to your parents, then the same amount will be included in the income of the parents. For example, if a person gets ₹50,000 basic salary along with ₹25,000 as HRA, and he actually shows ₹25,000 as the rent amount, then he will get HRA exemption only on ₹20,000 per month, because this is the amount left after deducting 10 percent of the basic salary from the amount of rent paid. So, now the income of the parents collecting the rent will increase by ₹20,000 per month (even if their income is zero, their income will now be considered as ₹20,000), and after deducting 30 percent maintenance expenses from this amount, they will have to pay income tax on the remaining amount.

So, overall it is very important that the rented house should not be the property of the tenant, and the rent paid to the parents should be paid through the bank, and the tenant (parent) should include the amount received as rent in his income and pay income tax on it.

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Well, there is no problem if you do small shopping in cash, but there are 5 high value cash transactions, which can cost you heavily. As soon as the Income Tax Department gets a whiff of it, you can get a notice. Let’s know about them.

1- Deposit cash in bank account

According to the rules of the Central Board of Direct Taxes (CBDT), if someone deposits Rs 10 lakh or more in cash in a financial year, then information about it is given to the Income Tax Department. This money may have been deposited in one or more accounts. Now since you are depositing more money than the prescribed limit, the Income Tax Department can ask you about the source of this money.

2- Depositing cash in fixed deposit

Just as questions arise when you deposit more than Rs 10 lakh in a financial year in a bank account, the same happens with FDs. If you deposit more than Rs 10 lakh in one or more FDs in a financial year, then if there is any doubt, the Income Tax Department can question you about the source of the money.

Also Read: ITR Filing 2024: If you do not provide these documents then your HRA claim may be rejected

3- Big property transactions

If you have made a cash transaction of Rs 30 lakh or more while buying a property, then the property registrar will definitely inform the Income Tax Department about this. In such a situation, due to such a large transaction, the Income Tax Department can ask where you got the money from.

4- Payment of credit card bill

If your credit card bill is Rs 1 lakh or more and you pay it in cash, you can still be asked what is the source of the money. On the other hand, if you make a payment of Rs 10 lakh or more in any financial year by any means, then the Income Tax Department can question you as to where did you get the money from.

5- Buying shares, mutual funds, debentures or bonds

If a large amount of cash is used to buy shares, mutual funds, debentures or bonds, then this also alerts the Income Tax Department. If a person makes a transaction of Rs 10 lakh or more, then the information about it reaches the Income Tax Department. In such a case, the Income Tax Department can ask you where you brought the cash from.

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You may find filing Income Tax Returns complicated, but by avoiding some common mistakes you can make the process easier and ensure that you get your due refund. However, some mistakes may occur inadvertently while filing ITR. These mistakes can cost you dearly. In such a situation, you should be careful while filing income tax return.

Filing your ITR is important for many reasons. Mainly it fulfills a legal obligation under the Income Tax Act. Along with following the tax laws and regulations, the government gets information about your income from different sources through ITR. It gives you an opportunity for financial planning and ITR is also an important document for loan or visa applicants.

Do not make these 10 mistakes while filing ITR-

Incorrect personal information – While filing your ITR form, ensure that all the information like name, PAN, address and bank account details are filled correctly in the form.

Choosing the wrong ITR form – Choose the right ITR form based on your income sources and your type of income. Filling wrong forms may result in fine.

Not giving complete information about your income – Provide information about income from all sources of income including salary, interest income, rent income, capital gains in your ITR. Failure to report all income sources may result in penalties.

Ignoring TDS credit– Must show the TDS details in ITR from Form 16/16A issued by your employer or deductor. Failure to provide correct information may result in notice and fine.

Incomplete information about investments and deductions– Correctly declare all investments, expenses and deductions to claim eligible tax benefits under Section 80C, 80D, 80G of the Income Tax Act.

Hiding interest income – Correct information about interest earned from savings accounts, FD or other sources should be given. Failure to do so may result in a fine.

Form 26AS not matching – Cross-check the statements in your ITR with Form 26AS. It contains details of your TDS, tax payment and other income tax related information.

Not filing ITR on time – This is a very important thing. Do not wait till the last moment of the last date to file ITR. Late filing of ITR may result in penalty.

Not verifying ITR – After filing ITR online, it is necessary to verify it electronically through Aadhaar OTP, NetBanking etc. or by sending a physical copy with your signature to the Income Tax Department within the stipulated time. If verification is not done, ITR filing becomes invalid.

Not maintaining necessary records – Maintain records of all documents, receipts and evidence related to your income, investments and tax deductions, as these may be required for verification or in case of any tax investigation in future.

Cash Withdrawal Rules : Good News! You will not have to go to ATM to withdraw cash, now you will get money sitting at home, just do this work

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The Income Tax Department has introduced a new facility related to Annual Information Statement (AIS). The department claims that this will bring transparency in the details of financial transactions of the taxpayer. Through this, taxpayers will be able to give their clarification or feedback regarding any transaction. This has been named feedback mechanism. This is beneficial for the income tax payer. AIS i.e. Annual Information Statement contains information about all such transactions of the taxpayer on which tax liabilities may arise.

Is this facility

The Income Tax Department prepares the annual information statement based on information received from various sources. Till now the taxpayer could see the details of his transactions. But, could not give my reaction on that. Now under the new system, if the taxpayer finds any discrepancy in any transaction in that statement, then he can give his comment about it.

How will the mistake be corrected?

The taxpayer can view the status of a transaction after responding to it. His response will go to the source carrying out the financial transaction. That source will take action on your comment. He can accept it either partially or completely.

He can also reject it. If he accepts it completely then he will correct his information. Then he will send the correct details to the Income Tax Department. This will be corrected in the annual information statement.

Transparency will increase

After giving his response, the taxpayer will be able to see through this facility whether his comment has been sent to the source of information or not. He will also know if the comment has been shared then on what date it has been shared. It will also be known on which date the source has given its response. This facility will bring transparency.

Process of using it
To use this feature, you must first log in to the compliance portal. After logging in with ID and password, you will have to go to the Annual Information Details section. You’ll then need to comment on a notification using the comment feature. After this the exchange of information with one source will begin.

Good News for 6.5 crore people…Will get Rs 1 lakh in just 3 days, EPFO changed the rules, know details

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Income Tax Saving: Often people invest at the last moment to save tax, due to which they are not able to save much tax. But if tax saving planning is done at the beginning of the financial year itself, then you can save lakhs of rupees. Especially your annual income should be Rs 10 lakh. Here some methods are being explained, under which you can save tax worth lakhs of rupees.

The government has fixed the limit of tax exemption up to Rs 7 lakh under the new tax regime, while exemption has been given on annual income up to Rs 5 lakh under the old tax regime. In such a situation, if your income is more than these two tax regimes, then you will have to adopt some methods to save tax. Let us know how you will not have to pay even a single rupee tax on an income of Rs 10 lakh?

How much tax is levied on earnings of Rs 10 lakh?

To save tax on annual income of Rs 10 lakh, you will have to opt for the old tax regime. There are different tax slabs available under the old tax system. 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.

You will not have to pay even a single rupee of tax

If your annual income is Rs 10 lakh then you will have to pay 30 percent tax. However, if you want, you will not have to pay even a single rupee. You can save the entire amount of tax by making some investments and taking advantage of deductions.

How can you save tax on Rs 10 lakh income?

A rebate of up to Rs 50 thousand is available as standard deduction. In such a situation, tax will now be charged on Rs 9.50 lakh.
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 tax will have to be paid on Rs 8 lakh.

If you invest up to Rs 50,000 annually in the National Pension System (NPS), you are given an extra Rs 50,000 tax exemption under Section 80CCD (1B). Now if we subtract Rs 50 thousand more, tax will be charged on Rs 7.50 lakh.

If you have also taken a home loan, you can save up to Rs 2 lakh on its interest under Section 24B of Income Tax. If we subtract Rs 2 lakh more from Rs 7.50 lakh, the total tax income will be Rs 5.50 lakh.

You can save tax up to Rs 25 thousand by taking a medical policy under Section 80D of Income Tax. Your name, your wife and children’s names should be there in this health insurance. Apart from this, if in the name of your parents

You can get additional discount of up to Rs 50,000 by purchasing health insurance.
In such a situation, if you subtract 75 thousand from Rs 5.50 lakh, the total tax liability will be Rs 4.75 lakh, which will be below the old tax regime limit of Rs 5 lakh. This means that you will not have to pay a single rupee tax on annual income of Rs 10 lakh.

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The Income Tax Department keeps introducing new features to help the taxpayers. In this new session of return filing, the Income Tax Department has introduced another new feature. This feature will enable taxpayers to track the notices received from the department in a single click.

Facility will be available here on the portal
This new feature of the Income Tax Department has been added to the e-Proceedings section. By clicking on this new tab, users will be able to track all pending tax proceedings at one place. All the letters and notices received by the taxpayer from the Income Tax Department will be available in this single tab. Search option has also been given to search them.

This information given in FAQ

The Income Tax Department has also explained about this new feature in the FAQ. The department has said about this in the FAQ that the e-Proceeding tab available on the e-filing portal is a simple way to electronically respond to all notices, intimations and letters issued by the Income Tax Department.

The communications that will be available in this new tab of the Income Tax Portal are as follows:

• Defective notice under section 139(9)
• Information under Section 245 – Against Adjustment of Demand
• Prima facie adjustment under section 143(1)(a)
• Suo-Moto Correction under Section 154
• Notices issued by the Assessing Officer or any other income tax authority
  Communications seeking clarification
• Additionally, a registered user can add or remove an authorized representative to respond to any notice/information/letter listed above

The tax department has this hope
The Income Tax Department says that this new facility introduced on the portal will reduce the compliance burden on the taxpayer. They will not need to go to the Income Tax office for every work. Apart from this, it will be convenient for the taxpayers to keep an eye on various other communications sent by the department including income tax notices.

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How To Boost Tax Refund: With the beginning of the new financial year, the process of filing Income Tax Return (ITR Filing) started. Most of the companies will give Form-16 to the employees by the end of May. At the same time, some self-employed people have completed the process of filing ITR. This time the last date to file Income Tax Return (ITR) is 31 July 2024. While filing ITR, you can claim certain deductions to reduce the income tax return. Many times people are not aware of the deductions under which you can claim deductions.

No exemption of any kind in the new tax regime

There is no benefit of any kind of exemption or deduction under the new tax regime. But in the old tax regime, there are many investment options on which you can avail tax deduction. There are some tax deductions about which people do not have much knowledge but the tax payer definitely gets benefits by claiming under them. Let us know about such options-

National Pension Scheme

You can get the benefit of additional deduction of Rs 50,000 under section 80CCD (1B) on investment in Tier-1 account of NPS. This is different from the benefit of deduction available under section 80C on investments up to Rs 1.50 lakh.

Deduction made on rent payment

Those in the salaried class who do not get the benefit of House Rent Allowance (HRA) and those running their own business can claim tax deduction on rent under section 80GG for the rented house under certain conditions. For example, if your monthly rent is Rs 10,000 and your annual income is Rs 7 lakh. In such a situation, you can avail deduction of Rs 50,000. Let us understand this calculation like this-

Rent paid: Rs 10,000 per month
Total income: Rs 7 lakh annually
10% of income: 7,00,000 x 10/100 = Rs 70,000
Deducting 10% of the rental income: Rs 10,000 – (70,000 / 12) = 10,000 – 5,833 = approximately Rs 50,000 per annum

Medical expenditure

Taxpayers can also avail tax deduction on the medical expenses of their parents. Many people are aware that they can claim tax deduction on health insurance premiums taken for life partner, dependent children and parents. But, if your parents are senior citizens and do not have any health insurance, then you can also avail tax deduction of up to Rs 50,000 under Section 80D on their medical expenses. Apart from this, you can claim a deduction of Rs 5000 under Section 80D on the health related check-up of your life partner and parents.

Deduction on electric vehicle

If you have bought an electric vehicle and taken a loan for it, then you can also get income tax exemption on the interest paid on its loan. Under Section 80EEB, you can claim a deduction of up to Rs 1,50,000 on the interest paid on loan taken from the bank. But the benefit of this deduction will be available only if your loan is approved between January 1, 2019 and March 31, 2023.

Discount on donations

Apart from this, you can also claim income tax deduction on donations made to some organizations. Donations given to these organizations get tax exemption under section 80G. But depending on the type of donation given by you to the registered organization, you get the benefit of different tax deductions.

These are also options for tax reduction

Apart from the tax deductions mentioned above, there are many more tax deduction options under the Income Tax Act, 1961. You can invest in PPF, EPF, ELSS, NSC under section 80C. In Section 24, you can claim deduction on the interest paid on your home loan. Tax deduction is also available on interest paid on loan taken under Section 80E. You can also get the benefit of tax deduction on House Rent Allowance (HRA).

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Income Tax Slabs: If you are going to file ITR for the financial year (2023-24) i.e. assessment year 2024-25, then it is very important for you to know whether the new tax regime is better or the old. Today we will tell you 8 benefits of the new tax system, which have been told by our experts CA Ajay Bagadia, CA Santosh Mishra and CA Abhinandan Pandey.

8 benefits of the new tax system

1) Lower tax rates
Tax payers can benefit from lower tax rates in the new tax regime. This will result in lower tax liability and higher disposable income.

CA Ajay Bagadia said that the Modi government is emphasizing on the new tax regime by making it more attractive for taxpayers. The new tax regime offers significantly lower tax rates to taxpayers.

2) Simple tax structure
The new tax regime has made this tax structure extremely simple by offering lower tax rates. The slabs under the new tax regime are as follows.

No tax on income up to Rs 3 lakh.

• Income between Rs 3 lakh to Rs 6 lakh will be taxed at 5 percent (tax exemption available under section 87A)
• Income between Rs 6 lakh and Rs 9 lakh will be taxed at 10 percent (tax exemption is available under Section 87A on income up to Rs 7 lakh).
• Income between Rs 9 lakh and Rs 12 lakh will be taxed at 15 percent.
• There is a provision of 20 percent tax on income between Rs 12 lakh and Rs 15 lakh.
• Income of Rs 15 lakh and above will be taxed at 30 percent.

3) No tax cuts

Under the new system, the need to track and claim tax deductions has been done away with in order to save time and effort for taxpayers.

“Taxpayers do not even have to go through the hassle of collecting and submitting details and evidence for expenses and investments,” says CA Abhinandan Pandey.

4) Basic Exemption Limit

CA Santosh Mishra says, “The basic exemption limit has been increased from ₹2.5 lakh to ₹3 lakh. This increased exemption limit makes the new tax regime more attractive. Note that the highest tax rate i.e. 30% will be imposed on income above Rs 15 lakh.”

5) Change in surcharge rate

With the implementation of the new tax system, the surcharge has reduced from 37% to 25%. This is applicable for individuals with income above Rs 5 crore. This reduced surcharge is valid only for those taxpayers who opt for the new tax regime and whose income is more than ₹5 crore.

6) Change in exemption limit

CA Ajay Bagadia says, “The exemption limit applicable for income up to Rs 5 lakh under the old tax regime is Rs 12,500. However, under the new tax regime if the taxable income is less than or equal to ₹7 lakh, it Exemption limit increased to ₹25,000. Note that Section 87A exemption is applicable under both income tax regimes. Again, the Budget announcement increased the taxable limit from ₹5 lakh to ₹7 lakh.”

7) Standard Deduction

The standard deduction for salaried individuals under both the old and new regimes is ₹50,000.

8) Rebate on leave encashment

Under the new tax regime, you will get exemption on leave encashment. CA Santosh Mishra says, “In Budget 2023, the exemption limit for leave encashment for non-government employees was increased by 8 times i.e. from ₹ 3 lakh to ₹ 25 lakh. Therefore, as per section 10(10AA) on retirement, ₹ Leave encashment up to Rs 25 lakh is tax free.

Other deductions under the new system

Deduction of Rs 15,000 or 1/3 of pension (whichever is less) from family pension income.

Deduction of amount paid or deposited in Agniveer Corpus Fund under section 80CCH(2).

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The Income Tax Department has made income tax return forms ITR-1, ITR-2, ITR-3 and ITR-4 available for the financial year 2023-24 (AY 2024-25) on the e-filing portal from April 1, 2024. Now taxpayers can file income tax returns by choosing forms ITR1-4 on the portal.

The last date for filing income tax returns for the financial year 2023-24 is 31 July 2024. This means that income tax returns can be filed without any fees till July 31. Let us know what is ITR-1, ITR-2, ITR-3 and ITR-4 and who can fill it?

What is ITR1, ITR2, ITR3 and ITR4?

The Income Tax Department presents tax return forms according to the income. Accordingly, a taxpayer has to fill ITR. There are 7 types of ITR, which include ITR1, ITR2, ITR3 and ITR4. Here we are telling you which form you should fill.

Who should fill ITR1 form-

ITR 1 or Sahaj form should be filled by those people whose annual income is less than Rs 50 lakh. This earning can be from salary, pension or other sources. Those earning income from house or property can also fill this form. A farmer earning Rs 5000 can also fill this form.

People earning more than 1 house property, making capital gains, investing in business or unlisted companies, a businessman, HNI investors and a director of a company are not eligible to fill this form.

Who can fill ITR2 form?

If the annual earning limit is more than Rs 50 lakh then ITR 2 can be filed. Apart from this, short term, capital gains, those earning from more than one house property, those earning more than Rs 5000 from farming, income from horse riding betting, income from lottery or legal gambling, those investing in any company or any other The director of the company can fill this form.

ITR3 Form –

This form can be filled by a person or HUF who is earning from his business or profession. Income from ITR 2 is also included in this. Apart from this, those earning from shares of unlisted companies should also fill this form. Also, if there is income from salary, house property, capital gains, horse racing, lottery etc. then ITR Form-3 can be filled.

ITR4 Form –

This form is for individuals and HUFs whose annual income is Rs 50 lakh or more, then ITR 4 form should be filled. This form has to be filled if the income is under section 44AD and 44AE of Income Tax. Those earning from salary, pension or other sources can fill ITR 4.

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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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Currently, individual taxpayers have the option to choose between the new and old tax regime. The option to switch between the two is also open for him. Many taxpayers are unable to decide which of the new and old regimes is beneficial for them.

Benefits of old tax regime

The new and old tax regimes have their own advantages and disadvantages. Tax rates are lower in the new tax regime. But, deductions are not available under different sections of income tax. The most prominent among these are deduction under section 80C, deduction under section 80D and deduction under section 24B.

Section 80C relates to deduction on life insurance policies, PPF, ELSS and children’s tuition fees. 80D is related to the deduction available on health policy. Section 24B relates to deduction on interest payment on home loan.

Who benefits from the new tax regime?

Deduction facility is not available on Section 80C, Section 80D and 24B in the new tax regime. Experts say that the new tax regime is beneficial for those taxpayers who do not claim any deduction. If a person has taken a home loan and claims deduction on home loan interest every financial year, then his tax liability reduces significantly. Similarly, tax liability is reduced due to deduction on premium of life insurance policy and health policy.

Deductions in the new tax regime

Finance Minister Nirmala Sitharaman had also allowed two types of deductions under the new tax regime in the Union Budget presented in 2023. In this, the first annual standard deduction is Rs 50,000. The second section is the deduction available on employer’s contribution to NPS under section 80CCD(2). Pensioners can also avail the benefit of standard deduction. They can claim either Rs 15,000 or 33.33 per cent of their pension, whichever is less.

These benefits also in the new tax regime

One thing that is important to keep in mind is that pensioners can claim standard deduction only if the pension is taxable as salary income. If a taxpayer selects pension under other income then he will not get the benefit of standard deduction. In the new tax regime, exemptions are available on voluntary retirement, gratuity and leave encashment. In the new regime, disabled people also get deduction on transport allowance.

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A very good news has come for the taxpayers. The Income Tax Department has made a big plan regarding tax refund. The interim action plan of the Income Tax Department is to close the pending tax refund cases by April 30..

What is the plan of Income Tax Department?

There are still many taxpayers whose tax refund of the last assessment year is stuck. After filing the tax return, the refund has not been processed yet. But the department plans to settle the remaining pending refund cases by April 30. During this time, the department will have to complete the scrutiny of the refund and make the refund payment in April. The department has set a target to settle e-redressal cases by May 5.

Will speed up processing

Apart from this, the department plans to share information with agencies like CBI, ED, SEBI, SFIO by April 30. Information on applications received till 31st March should be given by 30th April. After this, information has to be shared within 15 days on the applications received after April 1. In cases where penalty is confirmed by ITAT, processing will take place till June 30.

Also the target is to speed up the matters of international taxation and transfer pricing. Every AO (Assessment Officer) will identify the top 30 TDS non-filers by June 30.

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The Income Tax Department has given big relief to some taxpayers. In fact, the department said that for the financial year 2020-21, a difference has been found between the rent paid by the salaried employees and the amount received by the recipient. The department has analyzed the data in high value HRA cases.

However, the Central Board of Direct Taxes (CBDT) has denied reports that the department is running a special campaign to reopen House Rent Allowance (HRA) cases. The number of such cases was very less as the rent paid by the tenant and the rent received by the recipient was verified.

The CBDT said in the statement that the data was analyzed in some high value cases involving discrepancies between the rent paid by the employee and the amount received by the recipient for the financial year 2020-21. This verification was done in a very small number of cases and a large number of cases have not been reopened.

The purpose was only to alert.

The Central Board of Direct Taxes said that the purpose of e-verification was only to alert about matters related to discrepancies in information for the financial year 2020-21 without affecting others. CBDT said that some cases of discrepancy between the returns filed by the taxpayer and the information available with the Income Tax Department have come to the notice of the department. This is nothing but a part of the routine steps taken to verify the data. In such cases, the department has alerted the taxpayers so that they can take corrective steps.

House rent allowance is part of salary income or CTC. It is calculated in taxable income. However, if an employee lives in rented accommodation, he can claim income tax exemption for HRA received during the year by submitting a valid rent receipt. However, if taxpayers opt for the new tax regime, they do not get any exemption.

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But, amidst all this hustle and bustle, do not forget an important date or rather deadline. If you exceed this limit then you will not get any income tax exemption. Even if you are paying home loan interest or earning from FD interest.

Actually, we are talking about Income Tax Return (ITR Filling) for the financial year 2023-24, the deadline for which has already been fixed by the Income Tax Department as July 31, 2024. If you file your ITR before this deadline, then you will be given a chance to choose the old regime. After crossing the prescribed deadline, taxpayers will not be given the option to choose the old regime.

What is the old and new regime?
The government had implemented a new tax regime in 2019, in which the income tax slab rates are lower, but no tax exemption of any kind is given. The government had implemented the new regime only after eliminating 70 types of tax exemptions. At the same time, even though the slab rate is higher in the old regime, there is a direct tax exemption of Rs 3.50 lakh on home loan interest and principal, Rs 1.5 lakh under 80C and Rs 75 thousand on insurance. Apart from this, you get tax exemption on other options also.

Why do you have to choose a regimen?
The government has implemented the new tax regime by default from the budget of 2023. This means that if the investor does not choose any regime, his earnings will be calculated under the new regime and tax will be deducted as per its rate. This means that if you want to avail tax exemption on loan, investment or other types of allowances, then you will have to choose the old tax regime yourself. For this, it is necessary to file returns before 31st July.

If you miss the deadline…
If a taxpayer does not file his return by July 31, then from August 1, 2024 to December 31, 2024, such taxpayers will be given a chance to file belated ITR. This means that such taxpayers will be able to file their returns by paying some penalty, but they will not be allowed to use the old tax regime. In such a situation, tax will be deducted directly from their earnings at the same rate by implementing the new regime.

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You often hear news in the media that the Income Tax Department raided someone’s house and seized cash worth crores. Income Tax Department officials often raid people’s homes. And they capture expensive things and a lot of cash from the houses.

It has been seen on many occasions that officials seize the cash found during raids. Question comes in people’s mind. How much cash should be kept at home? Is there any law for this? If you keep too much, will the Income Tax Department come? Let us know the answers to these questions.

There is no law regarding keeping cash

There is no provision in Indian law regarding whether you keep ₹100 or ₹100 crore in your house. Nor is there any rule that a person can keep cash or expensive things in the house only to this extent. But cash can be kept in this quantity.

Whatever income you have. That means you will have to give complete details of that cash. You must have mentioned about that cash in your ITR. That money should not be illegal in any way. And when you are asked for information about it, you can give complete information.

Action may be taken

According to tax experts, neither RBI nor Income Tax Department has made any rule under any law regarding keeping cash. You can keep as much cash at home as you want. But the condition is that you will have to keep complete accounts of all the money. If the Income Tax Department suspects that the amount of cash you have is suspicious.

Then the department can start investigating it. And you will have to give information and explanation regarding that cash in the investigation. If you fail to explain where the cash came from and what was its source. Then action will be taken against you and your cash can also be confiscated.

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If you pay tax then this news is useful for you. Actually, taxpayers have two options to pay tax. First is Old Tax Regime and second is New Tax Regime. If you do not choose any tax regime from these two options, then your income tax return will be automatically filed under the new tax regime. Taxpayers believe that filing ITR under the old tax regime leads to greater tax savings. But, if you have chosen the new tax regime then there is no need to worry, today we will tell you some such methods in this article. By adopting these, you can avail tax exemption in this also.

Those doing jobs and business can do this every year

The central government had introduced the new tax regime during the budget of 2020. After this, the new tax regime has been made the default in the budget of 2023. That is, if you do not choose the old tax regime while paying tax, then your tax will automatically be calculated according to the new tax regime. If you do job or business then you can choose old and new tax regime every year.

If you do not fall in either of these two categories, you will get this opportunity only once. That means, after choosing one of the old and new tax regimes, it cannot be changed again. If you are self-employed, you will be able to avail the benefits of the old tax regime only once. To avail this benefit, you will have to fill Form 10-IE along with Income Tax Return (ITR). You have to submit Form 10IE to the Income Tax Department before filing ITR.

What is the difference between old and new tax regime?

You get about 70 types of deductions and exemptions in the Old Tax Regime. Not only this, you can also avail tax exemption of up to Rs 1.5 lakh in income tax under Section 80C. You do not get the benefit of many big tax exemptions including Section 80C in the New Tax Regime. Now this tax system has been made the default. However, you can make changes in this every year. That means, one year you can choose old tax regime and the next year you can choose new and then old tax regime.

This is how you can get tax exemption in the new regime

1. Standard deduction was earlier available only in the old tax regime. Now it has also been included in the new tax regime. This means that your taxable income will directly reduce by Rs 50 thousand. If the taxpayer falls in the disabled category, he can claim deduction i.e. tax exemption on transport allowance. This relaxation will be applicable to both private and government sector employees.

2. If you are employed, you can avail tax exemption on travel, transport and other allowances received for office work in the new tax regime. If you are doing office work from some other place and are paid to meet the expenses there, then income tax can be claimed on this also.

3. Under Section 10(10C) of Income Tax, if someone takes Voluntary Retirement Scheme (VRS), then with certain conditions, he can also avail exemption in the new tax regime on gratuity and leave encashment i.e. money received in lieu of remaining holidays. Could. There will be no tax on this.

4. In the new tax regime, you can also avail tax exemption on gifts. If you give a gift of Rs 50,000 to your brother, sister or any relative, you can avail tax exemption on that too. A taxpayer can claim income tax exemption only on gifts up to Rs 50,000 in a financial year.

5. You can also avail tax exemption under Section 24 on home loan interest under certain special circumstances in the new tax regime. This exemption is available when you are paying interest on the loan of a house which you have given on rent.

6. The money deposited by the employer into the National Pension Scheme (NPS) account of the employee gets tax exemption. Apart from this, tax exemption is also given on additional investment of Rs 50 thousand in Tier 2 account of NPS. You get this exemption in both the old tax regime and the new regime.

7. Taxpayers who earn through family pension can also get tax exemption on this amount. Under Section 57 of Income Tax, the amount of such family pension has been kept out of the scope of income tax in the new tax regime also. Rebate can be claimed on this amount.

Tax slabs of new tax regime

• 1. In the new tax regime, no tax has to be paid on annual income of Rs 0-3 lakh.
• 2. 5 percent tax has to be paid on income of Rs 3 to 6 lakh and 10 percent tax has to be paid on income of Rs 6 to 9 lakh.
• 3. 15 percent tax has to be paid on earnings of Rs 9 to 12 lakh, 20 percent on earnings of Rs 12 to 15 lakh and 30 percent on earnings above Rs 15 lakh.
• 4. Along with this, 4 percent tax is also levied as health and education cess.

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The new financial year 2024-25 has started from 1 April 2024. This date is especially important for financial institutions, because if there is any change in the tax system, it comes into effect from this day. Let us know which dates are important from the Income Tax point of view in April (Income Tax Deadline 2024).

Taxpayers should keep these dates of April in mind

7 April

April 7 is the due date for depositing the tax collected or deducted by any government office for the previous month i.e. March 2024. However, the amount collected or deducted will be paid into the government account on the same day the tax is paid without producing the income tax challan.

14 April

April 14 is the last date for issuance of TDS certificate for tax deducted under sections 194-IA, 194-IB, 194M and 194S in the month of February.

15th April

April 15 is the last date for furnishing quarterly statement regarding foreign remittances in Form No. 15CC for the quarter ending March 2024. It is offered by registered dealers.

30 April

• This is the last and very important date. Many things have due date on this day (April due date).
•  This is the last date to submit Form 24G from the government office where TDS/TCS payment for March 2024 has been made without presenting the challan.
• This is the deadline to submit Challan-Cum-Statement in respect of tax deducted under sections 194-IA, 194-IB and 194M in March 2024.
• This is the last date for depositing the tax for March which has been deducted by any assessee other than the government office.
• This is the last date for e-filing of declaration in Form No. 61 containing details of Form No. 60 received during the period October 1, 2023 to March 31, 2024.
• Due date for uploading Form 15G/Form 15H for the quarter January-March 2024

New tax regime will be default

For information, let us tell you that from April 1, 2024, the new tax regime has become the default option in the country. Meaning that if you have not chosen between the new and old tax regime, then your income tax return (ITR file) will be filed under the new regime. Its objective is to bring more people under its ambit by improving the methods of filing returns. It does not provide many deductions and exemptions, but includes low tax rates.

And if you want to pay tax through the old system, then you will have to tell your company about this. Otherwise he will deduct it from your salary as per the new tax regime.

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Income Tax Update: There is a lot of discussion on social media regarding the new tax regime. Now the Finance Ministry has given clear information regarding the tax regime. For the last few days, many misleading things were being seen on social media regarding the new tax regime.

Along with this, it was being told that there is going to be a change in the tax regime from April 1, 2024, but the Finance Ministry has made it clear by tweeting that there is not going to be any change in the tax regime.

Finance Ministry gave information
The ministry has said that no new changes have been made from April 1, 2024. A revised new income tax system was implemented for the people in the financial year starting from April 1, 2023, under which the tax rates are “much lower”. However, it does not have the benefit of various exemptions and deductions (except the standard deduction of Rs 50,000 from salary and Rs 15,000 from family pension) like the old system.

It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that:

👉 There is no new change which is coming in from 01.04.2024.

👉 The new tax regime under section 115BAC(1A) was… pic.twitter.com/DtKGkK0D5H

— Ministry of Finance (@FinMinIndia) March 31, 2024

The ministry has said that the new tax regime is the ‘default’ tax system. However, taxpayers can choose the new or old tax system as per their convenience as per their convenience… The option to opt out of the new tax system is available till the filing of return for the year 2024-25.

How much is the tax?
In the new tax regime, there is no tax on annual salary of Rs 0-3 lakh. After this, 5% tax is levied on income of Rs 3 to 6 lakh, 10% on income of Rs 6 to 9 lakh, 15% on income of Rs 9 to 12 lakh, 20% on income of Rs 12 to 15 lakh and 30% on income above Rs 15 lakh. Apart from this, 4% is charged as Health and Education Cess.

If you do not choose the tax regime then…
Let us tell you that if any taxpayer forgets to select his tax regime or does not select the tax regime, then his new tax regime will automatically be implemented. After this, your tax will be automatically deducted as per the new tax regime.

Tax slab in old tax regime-

• 0 to ₹2.5 lakh = 0
• ₹2.5 lakh to ₹5 lakh = 5%
• ₹5 lakh to ₹10 lakh = 20%
• Above ₹10 lakh = 30%

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There is a provision of separate exemption in the new tax regime for those taxpayers who fall in the category of disabled. If such taxpayers get any transport allowance, then they can claim income tax exemption on that amount. This exemption will be applicable to both private and government sector employees.

If an employee has been transferred or has been sent on a tour at the company’s expense. In both these circumstances, if any amount is paid by the company for any kind of compensation, then the taxpayer can claim income tax exemption on that also. Apart from this, other allowances or facility charges received from the office, like if you are doing office work from some other place and are paid to meet the expenses there, then income tax can be claimed on this also. Could.

Under Section 10(10C) of Income Tax, income tax will not be charged on the amount of gratuity and leave encashment even after taking VRS i.e. voluntary retirement. You will also get the benefit of income tax exemption on such payments.

Actually, the benefit of tax exemption on home loan is available only in the old regime. But, under certain circumstances, under the new tax regime, tax exemption under Section 24 on home loan interest can also be availed. This exemption is available when you are paying interest on the loan of a house which you have given on rent.

You will be surprised to know that in the new tax regime, you can also avail tax exemption on gifts received in any one financial year. However, the gift amount should be in a fixed amount. A taxpayer can claim income tax exemption only on gifts up to Rs 50,000 in a financial year.

The money deposited in NPS by the employee’s employer is eligible for tax exemption. Apart from this, tax exemption is also given on additional investment of Rs 50 thousand in Tier 2 account of NPS. You get this exemption in both the old tax regime and the new regime.

Taxpayers who earn through family pension can also get tax exemption on this amount. Under Section 57 of Income Tax, the amount of such family pension is out of the scope of income tax even in the new tax regime and exemption can be claimed on this amount.

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Earlier in the new tax regime there was no provision for standard deduction. At the same time, after Budget 2023, the benefit of discount up to Rs 50,000 is available.

Everyone will get the benefit of deduction
The special advantage of this deduction is that no matter which tax slab the taxpayer falls under, he will get the benefit of this exemption.

Employed people are getting discounts
In the new tax regime, employed people get all kinds of perks or allowances for travel, transport, conveyance and office work. You get the benefit of tax exemption on them.

Discount on gifts
Apart from this, you will also get the benefit of discount on gifts up to Rs 50,000. If you are paying home loan for a house given on rent, then you will also get rebate on its interest.

There will be discount in NPS
Those investing in NPS can claim their tax deduction. Along with Voluntary Retirement Scheme, there will also be exemption on gratuity and leave encashment.

How much is the tax on which slab?
In the new tax regime, there is no tax on annual salary of Rs 0-3 lakh. Apart from this, 5% tax is levied on salary between Rs 3 to 6 lakh. 10% tax is applicable on income from 6 to 9 lakhs, 15% on 9 to 12 lakhs, 20% on income from 12 to 15 lakhs and 30% tax on income above 15 lakhs. Apart from this, 4% is charged as Health and Education Cess.

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In India, citizens are given income tax exemption under the sections of the Income Tax Act 1961. All taxpayers are required to file ITR return once a year. If your income comes under the ambit of income tax, then you must pay tax. The government gives an opportunity to taxpayers who file ITR to save Rs 1.5 lakh annually in tax.

However, not all taxpayers are aware of how to save tax. Today we are going to tell you 6 such ways, with the help of which you can save tax up to Rs 7 lakh. You will have to pay zero tax on earnings up to Rs 12 lakh. Let us tell you that in the old tax regime, the government has already made income up to Rs 5 lakh tax free.

Know those 6 ways –

1. If your salary is Rs 12 lakh, then you can make it in such a way that your HRA will be Rs 3.60 lakh, your LTA will be Rs 10,000, and the expense of phone bills will be Rs 6,000. You will get a standard deduction of Rs 50,000 on salary under Section 16. You can claim exemption on profession tax of Rs 2500.

2. HRA of Rs 3.60 lakh can also be claimed under Section 10 (13A) and LTA of Rs 10,000 under Section 10 (5). With these deductions, your taxable salary will reduce to Rs 7,71,500.

3. If you have invested in LIC, PPF, EPF, or if you have paid your child’s tuition fees, you can claim an additional deduction of Rs 1.50 lakh under Section 80C.

4. Those who have invested in the Tier-1 scheme of the National Pension Scheme are eligible for an additional deduction of Rs 50,000 under section 80CCD. After both these deductions, your taxable income will be Rs 5,71,500.

5. Section 80D allows you to claim tax exemption for premiums paid on health insurance policies. While you can claim Rs 25,000 for health insurance premium for yourself and your spouse or your children.

6. You can claim an additional rebate of Rs 50,000 for the premium paid on the health policies of your senior citizen parents. With this you will get the benefit of deduction of Rs 75,000, due to which your income will reduce to Rs 4,96,500.

These schemes can also give tax exemption
under the income tax rules: Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Saving Scheme (ELSS), National Pension System (NPS), Sukanya Samriddhi Yojana (SSY). Tax deduction is available on Senior Citizen Savings Scheme (SCSS) and Fixed Deposit (FDs) schemes with tenure of 5 or more.

According to tax experts, by investing your savings in these schemes, you can claim tax exemption as per the applicable conditions. Also, with this you can arrange more funds for yourself in the long run. Let us tell you that the last date of ITR file is 31 July 2024.

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Income Tax Saving Option: The financial year is about to end. Everyone is planning to save as much tax as possible. To save income tax, salaried class invest under Section 80C of Income Tax. By investing in this, you get tax relief on income up to Rs 1.5 lakh. But if even after this your tax is due, then you can save your tax by investing under other sections of income tax. If you are also thinking about tax saving options other than 80C, then we give you information about it.

NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:

If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:

Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of up to Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account

Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:

If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

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This financial year is going to end in a few days, along with which many deadlines are also coming to an end. This time of the financial year becomes important from the income tax point of view. One of the deadlines which is ending with the financial year on 31st March is the deadline for filing ITR-U i.e. updated income tax return.

What is updated income tax return?

The Income Tax Department gives taxpayers an opportunity to correct their mistakes. For this purpose, provision of ITR-U has been made. If you have given any wrong information in the old income tax return or have forgotten to show any income, then you can correct it by filing an updated return. Even if you have not filed a return earlier, you can still file a new return through updated return.

ITR-U is available for 2 years

The last date for filing updated returns is 31 March. Using the updated return, taxpayers can revise the return up to 2 years from the relevant assessment year. That is, the deadline ending on March 31, 2024, is to file updated income tax return for the financial year 2020-21 or assessment year 2021-22.

Fine may be up to 200%

The facility to file updated income tax returns has started from 1 April 2022. This is a great opportunity for those taxpayers who have missed any information in the old ITR or who have not been able to file the return even after being required to file it as per the income tax rules. The consequences of missing this last chance can be very heavy, because if caught by the Income Tax Department, a penalty of up to 200 percent of the payable tax will be imposed.

I have to pay so much more

Taxpayers also have to pay handsomely for filing updated returns. Additional tax equal to 25 per cent of the tax liability and interest has to be paid by filing updated returns within 12 months of the end of the relevant assessment year. Whereas if updated return is filed after 12 months and before 2 years, 50 percent additional tax has to be paid. Taxpayers filing updated returns for FY 2020-21 or Assessment Year 2021-22 can rectify the mistake or file a new ITR after paying 50% extra tax by March 31, 2024.

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Income Tax Saving Option: The financial year is about to end. Everyone is planning to save as much tax as possible. To save income tax, salaried class invest under Section 80C of Income Tax. By investing in this, you get tax relief on income up to Rs 1.5 lakh. But if even after this your tax is due, then you can save your tax by investing under other sections of income tax. If you are also thinking about tax saving options other than 80C, then we give you information about it.

NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:

If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:

Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account

Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:

If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

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The financial year 2023-24 is about to end and only a few days are left to save tax this year. If you want to save this year, then you will have to invest before March 31, because the new financial year 2024-25 will start from April 1, 2024. The popular fixed deposit scheme of the bank can be useful in saving tax. But for this you will have to invest in 5 year FD. By investing in this scheme you can save Rs 1.5 lakh in your total taxable income.

Generally, tax benefit is not available on fixed deposits. The reason for this is that the interest you earn from fixed deposits is added to your annual income. In such a situation, if your income comes under the ambit of tax, then you have to pay tax as per the slab. But tax can be saved by investing in a 5 year FD scheme.

This scheme is available in all banks and post offices.

5 year FD is known as tax saving FD. In this you get the benefit of Section 80C of the Income Tax Act. Under Section 80C, you can claim a deduction of Rs 1.5 lakh in the total taxable income.

The option of 5 year tax saving FD is available in all banks. Besides, you will easily get this option in the post office also. However, its interest rate may vary in different banks and post offices. In such a situation, you can invest in FD where you are getting better interest.

Disadvantages of breaking the FD scheme before 5 years: It

is your loss to break the five year FD scheme before maturity. By doing this you will not get tax benefit and will also have to pay penalty. If you break the FD before maturity, then in the year in which the FD is broken, the entire amount on which you have availed the benefit of income tax exemption will be added to your income. Apart from this, interest is also added to your income. After this, you will have to pay tax according to the income tax slab you fall in.

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NPS will save tax

If your limit under Section 80C has been exhausted and you want to save tax, then do not worry. You can save tax up to Rs 50,000 by investing in the National Pension Scheme (NPS). This investment is in addition to the limit of Rs 1.5 lakh under section 80C. This means that you can save tax on total income up to Rs 2 lakh.

Exemption on Health Insurance:
If you pay health insurance premium for your family, you can get tax exemption on it. Under Section 80D, you can invest up to Rs 25,000 on the health insurance premium of yourself, spouse and children. Apart from this, if the age of your parents is less than 60 years, then you can pay a premium of up to Rs 25,000 for health insurance. But if your parents are senior citizens then this limit is up to Rs 50,000.

Exemption available on health checkup:
Do you know that you can also get tax exemption on getting a health checkup done? Under Section 80D, you can take deduction on the expenses incurred on investigation. Every year you can claim a maximum deduction of Rs 5,000. This amount comes within the limit of total deduction given under section 80D.

Exemption on interest on savings account
Under section 80TTA, individual taxpayers and Hindu Undivided Families (HUFs) (to whom section 80TTB does not apply) are entitled to a deduction on interest income from savings account opened in a bank, post office or co-operative society. The benefit of maximum tax deduction up to Rs 10,000 is available in the financial year.

Exemption available on donation:
If you have donated funds to someone under Section 80G, then you can claim deduction on the donated amount. But it should be kept in mind that the amount of this donation should not be more than 10% of the total income. This deduction is also available on donations made for the renovation of temples, mosques and churches approved by the Central Government.

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The tax department has given big relief to some companies in the matter of filing income tax returns. This relief is for those companies which have gone through business reorganization. CBDT has now given more time to such companies to file modified income tax returns.

Got time till 30th June
CBDT issued an order regarding this on Thursday. According to the CBDT order, companies undergoing business reorganization can now file modified returns till June 30. The increase in the deadline is going to provide relief to those companies whose business has undergone corporate developments like merger, demerger or amalgamation.

What does the CBDT order say?
According to the CBDT order, companies undergoing reorganization, especially the scheme of amalgamation, merger or demerger or the process of succession after insolvency under the approval from the competent authority, can now file modified returns till June 30, 2024. The extension in the deadline for modified returns is for those companies whose reorganization process has started after June 2016 and before April 2022.

Provision made in Finance Bill 2022
A provision for filing modified returns was made in the Finance Bill 2022 for companies undergoing business reorganization. Such companies were asked to file modified income tax returns after reorganization. However, this was applicable only to those companies for which the reorganization order had come between April 1 and September 30, 2022.

CBDT order clears up confusion
After the provision of modified returns in the Finance Bill 2022, a situation of confusion had arisen in front of those companies whose reorganization order had come before April 1, 2022. After the new order of CBDT, the confusion has been cleared and the companies starting the process of reorganization before the implementation of Finance Bill 2022 have got additional time to file modified returns.

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Income Tax: Everyone wants to invest in property. In this, the returns are quite good, even if late. Besides, your investment also remains safe. But, these days people are facing Income Tax Notice on purchasing property. If something similar has happened to you too, then you should know where the mistake happened.

It is very important to link PAN and Aadhaar –

If you have received income tax notice after purchasing a house or land. So check carefully whether your PAN card and Aadhaar are linked (PAN Aadhaar Link) or not. Also, the PAN card of the person whose property you are buying should also be linked to Aadhaar. If the PAN card of either the buyer or the seller is not linked to his Aadhaar number, then both can get into trouble. Recently more than one crore PAN cards were closed.

How much is the tax?

According to income tax rules on purchase and sale of property, 1 percent TDS has to be paid on purchase of property worth Rs 50 lakh or more. However, it can be claimed later. But now the deadline for linking Aadhaar-PAN has passed. In such a situation, people will have to pay 20 percent TDS.

Notices started coming –

More than 6 months have passed since the last date for linking Aadhaar-PAN. In such a situation, now the Income Tax Department is sending notices to the people who have purchased property. In these, 20 percent TDS has been demanded from the people. Hundreds of such notices have been issued by the IT department.

More than one crore PAN cards have become inactive –

Recently more than one crore PAN cards were deactivated. All of them had not linked their PAN card with Aadhaar. The government had taken this decision to promote the digital economy. Linking of these two cards makes it easier for the government to keep an eye on financial transactions. Therefore, if you are thinking of buying a house or house somewhere in the future, then be a little careful. Be sure to collect information about not only your own but also the PAN and Aadhar card of others.

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Income Tax E-Campaign: The Income Tax Department has started an e-campaign, through which emails and messages are being sent to those taxpayers whose tax paid and financial transactions in the current financial year (FY 2023-24) do not match.

Are eating. The department gave information about this on Sunday. The Central Board of Direct Taxes (CBDT) said that the IT department is engaged in identifying those taxpayers and institutions whose tax deposited and financial transactions are not matching.

This email and message has been sent for the assessment year 2024-25 i.e. financial year 2023-24. The department is informing such people and institutions through messages and e-mails. All these are part of the department’s e-campaign.

You can pay advance tax till March 15

The Income Tax Department said about this campaign that the purpose of this campaign is to alert those taxpayers who have a difference between their advance tax and financial transactions. Such people can recalculate their tax and deposit their advance tax before March 15.

The Income Tax Department has fixed March 15 as the last date for depositing advance tax for the financial year 2023-24. The department has said that if any person has any remaining tax liability, he can deposit the outstanding amount along with interest through updated return.

Taxpayers themselves can identify the mistake

Taxpayers can identify any tax related errors through their Annual Information Statement. This report can be viewed by visiting the official website of the Income Tax Department. Apart from this, you can also check your financial transactions through AIS app.

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There is a good news for income taxpayers. Tax payers whose old income tax refund is stuck will no longer have to wait long to get it. The Central Board of Direct Taxes (CBTD) has said in a circular issued on March 1 that the income taxpayers will get the pending tax refund money for the financial year 2020-21 i.e. assessment year 2021-22 by April 30, 2024.

If your tax refund is also due then you must keep checking your e-mail. It is necessary to do this because the Income Tax Department is giving information to every defaulter through e-mail. If you have not received the e-mail yet, it will come soon.

CBDT in its circular said, “It has been brought to our notice that due to some technical issues or other reasons, many of the valid returns filed for the assessment year (AY 2021-22) 2021-22 under section 143 of the Act have not been returned. Could not be processed under sub-section (1).

As a result, the information regarding processing of such returns could not be sent within the time limit prescribed under sub-section (1) of section 143 of the Act. “This has led to a situation where taxpayers are unable to receive their valid refunds as per the provisions of the Act, although they are not responsible for the delay.”

Refunds of many income taxpayers are stuck

After the income taxpayer files the return request in the Centralized Processing Center within a specified period, the Income Tax Department issues an intimation notice under section 143(1) of the Income Tax Act, 1961.

This notice means that the ITR filed by the income taxpayer has been successfully processed. After this, usually the refund amount, if any, is released. Now income tax refund does not take much time. However, many ITRs filed for the financial year 2020-21 (AY 2021-22) have not been processed yet and due to this the refunds of many tax payers are stuck.

Complete information will be in intimation e-mail

All the information related to the income tax refund due to the income tax payer will be given in the intimation email being sent by the Income Tax Department. It is noteworthy that now the Income Tax Department does not take much time in issuing refunds. Only a few days after filing the income tax return,

he gets the information about processing of ITR. After the ITR is processed, the taxpayer is informed through intimation e-mail how much refund he is going to get and the refund amount is deposited in the bank account of the income tax payer after a few days.

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Income Tax Department: A very special information has come to light for those filing income tax returns. The Income Tax Department has fixed March 31 as the last date for filing updated returns (ITR-U). In fact, the IT department has received information about many taxpayers who have messed up the information in their returns or have not filed ITR at all. These people have been given the last chance by the department to correct their mistakes. They can correct these mistakes by filling ITR U.

Correct information about interest and dividend income was not given

According to the information received from the Income Tax Department, many taxpayers have not given correct information about interest and dividend income received from third parties in the income tax returns. Many taxpayers have not filed returns. The Income Tax Department has identified these people.

Besides, a chance has also been given to rectify the mistakes till 31st March. For this you will have to go to the e-filing portal and file an updated return. This information is being given by the department to the taxpayers by sending SMS and email.

Big transactions not disclosed in ITR

The Income Tax Department has received information about such financial transactions from various sources. This has been made available through Annual Information Statement (AIS). Taxpayers can see this easily. The Income Tax Department is trying to ensure that people pay taxes voluntarily and maintain transparency.

This mismatch has been found in some income tax returns filed in the assessment year 2021-22 (FY 2020-21). The department has come to know that there is a difference between the information given in the ITR and the financial transactions available with the IT department. Therefore, people have been given the opportunity to file updated returns.

Investigation against those who do not file ITR

Besides, investigation is also being done against those who do not file ITR after making big financial transactions. Under the e-Verification Scheme-2021, the department is sending information to these people through email. Through these, the department is requesting the taxpayers to check their AIS through the e-filing portal

https://eportal.incometax.gov.in. Also file ITR-U if required. If taxpayers are not registered on the e-filing website then they will have to register. If taxpayers are unable to correct the mismatch, they can still report the income correctly through an updated income tax return.

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Income Tax Latest News: There is great news for more than 80 lakh taxpayers of the country. In fact, the Income Tax Department will itself eliminate the pending minor tax demands against about 80 lakh taxpayers and a clear order will be issued giving information about the prescribed procedure for this. Central Board of Direct Taxes (CBDT) Chairman Nitin Gupta gave this information on Friday.

What did CBDT say

The CBDT chief said about this, we will eliminate these tax demands, we will remove such demands from the records of the tax department. The taxpayer does not have to do anything and we will not contact them in any way.

Speaking to PTI after the Budget, Gupta said the process will not be adverse for the taxpayer. But these demands will be put on the e-filing portal of individual taxpayers so that they can also see and if there is any problem in it, the department will resolve it.

He said, if the taxpayer has any issue like rectification in relation to these demands or pending refund case, it will be taken care of. We will bring a clear order regarding this in which everything will become clear. The CBDT chief said the move will benefit around 80 lakh taxpayers. An amount of approximately Rs 3,500 crore is involved in these tax demands.

Let us tell you that earlier, Finance Minister Nirmala Sitharaman had announced to withdraw tax demands up to Rs 25,000 in the interim budget presented in the Parliament on Thursday. He had talked about withdrawal of tax disputes up to Rs 25,000 for financial year 2009-10 and outstanding direct tax demands up to Rs 10,000 for financial year 2010-11 to 2014-15.

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If you want to secure the financial future of your family, then life insurance policy can be one of the best options for that. But, many times people take a policy (Life Insurance Tax Benefits) just to save tax.

Should one take insurance to save tax?

If your aim is only to save tax (Income Tax 2024), then you should look at other options other than insurance policy. There are many such schemes of the government, by investing in which you can not only save a good amount of tax, but you also get excellent returns.

Whereas, if we talk about insurance policy, it costs more. This also affects your returns. Many times the returns come down to just 4 to 5 percent.

Why should one take an insurance policy?

The whole purpose of an insurance policy should be to cover your risks. Such as compensation for physical and financial losses caused by accidents. This secures the financial future of you and your family. Life insurance should not be seen as a tax saving option.

One should be more cautious during January-March. Insurance companies put more pressure on their agents to sell policies during January to March, because they have to meet the target. During this time, taxpayers also look for options to save tax. In such a situation, the agents sell the policy at a huge premium under the pretext of saving more tax.

If you want to get more returns then invest your money here

Many government savings schemes give much better returns than insurance policies. In these, tax exemption is available under 80C. Now like 8.2 percent return is being given on Sukanya Samriddhi Yojana and 7.1 percent return on Public Provident Fund (PPF).

Tax exemption of Rs 1.5 lakh is also available on mutual fund schemes like Equity Linked Saving Scheme (ELSS). Apart from this, returns can also be more than 10 percent.

HDFC Bank increased interest rates on fixed deposits, avail interest up to 7.75 percent

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The New Year has started. It is time for new financial planning. But, before that, efforts should be made to save tax for the current financial year. If you plan, you can save tax. Believe me, if the planning is correct then there will be no tax on your earnings i.e. salary. Means zero tax.

Will have to avail the benefit of reimbursement

According to income tax rules, tax can be saved if tax deductions and tax exemptions are used properly. However, for this you will have to keep your salary structure in such a way that the tax scope is not high. Apart from this, you can avail more benefits from reimbursement.

What needs to be done for zero tax?

Now the matter is that in order to avoid any tax on salary, the coordination between investment and savings will have to be maintained. If your salary is Rs 12 lakh and you take full advantage of reimbursement and investment tools, then definitely there will be no tax on the salary. The entire salary will be received without tax.

What should be kept in the salary structure?

The option to change the salary structure remains in your hands. You can also request this from company HR. There is a limit on reimbursement. But, it can have multiple tools. Convance, LTA, entertainment, broadband bills, petrol bills and entertainment or food coupons can also be used in reimbursement. With the help of all this, tax can be saved. Apart from this, there is also the option of HRA to save tax.

This is how you get benefits in HRA

Three figures are included in claiming HRA. Tax exemption will be given on the one which is lowest among these three. In the salary structure, the HRA given by the company is according to metro and non-metro cities. There is an exemption to claim HRA up to 50% of the basic salary in a metro city and up to 40% of the basic salary in a non-metro city. The amount that is left after deducting 10 percent of the basic salary from the total rent can be claimed as HRA.

How will your HRA be decided?

The fare in metro city is Rs 20 thousand. Meaning 20 percent of your total monthly salary. Basic salary will be 50 percent of CTC. In this case your basic amount is Rs 6 lakh. If you get HRA of about 40 percent of the basic salary from the company, then you will get HRA of about Rs 2.40 lakh annually.

But, since you live in a metro city, you can take HRA up to 50 percent i.e. Rs 3 lakh. At the rate of Rs 20 thousand, the annual rent was Rs 2.40 lakh. From this, after deducting 10 percent of basic salary i.e. Rs 60 thousand, the total HRA became Rs 1.80 lakh. Now Rs 1.80 lakh is the lowest among the three figures given above. In this situation you can claim Rs 1.80 lakh annually.

LTA- Leave Travel Allowance

LTA benefit can be availed twice in 4 years. This includes the travel plan fare. This is 10 percent of your basic salary. LTA of Rs 60 thousand will be available on basic salary of Rs 6 lakh. If we look at the annual average, tax exemption can be availed on Rs 30 thousand.

How will you get the benefit of reimbursement?

1. Conveyance Allowance: Those in the salary bracket of Rs 12 lakh usually get a reimbursement of Rs 1-1.50 lakh. Meaning, conveyance allowance of Rs 1.50 lakh will be completely non-taxable.

2. Broadband bill: Tax exemption can also be available on broadband bill. Get it included in the reimbursement. For this, an allowance of Rs 700-1000 is available every month. Let us assume that under this you get Rs 1000 every month i.e. your annual non-taxable salary will be Rs 12000.

3. Entertainment Allowance: Entertainment Reimbursement can be claimed by showing the food bill. Those with salary up to Rs 12 lakh will be non-taxable up to Rs 2000 i.e. Rs 24 thousand every month.

4. Uniform, Books or Petrol Bills: Different companies give reimbursement in the name of uniform, petrol or books bills. In this category also you can take Rs 1000-2000. By taking Rs 1,000 as reimbursement every month, Rs 12,000 annually will come into the non-taxable category.

You will definitely get income tax deduction

Some deductions are available in the Income Tax Act, which help in reducing the taxable salary.

1- Basic Income Exemption: Salary up to Rs 2.5 lakh has been kept non-taxable under income tax rules. Meaning, no exemption tax will be levied on your total salary up to Rs 2.5 lakh. But, it is calculated in the end.

2. Standard Deduction: First of all, standard deduction of Rs 50 thousand will be available. Meaning, whatever your salary, subtract Rs 50 thousand from it.

3- Section 80C: In this, you can get tax exemption on investment up to Rs 1.50 lakh. It includes tools like EPF, PPF, Sukanya Samriddhi Yojana, NPS, child’s tuition fees, LIC, home loan principal. You can claim a deduction of Rs 1.50 lakh by using its entire limit.

3- Section 80CCD(1B): In this, one gets the benefit of investing additional Rs 50 thousand in NPS.

4- Section 80D: In this, you can save tax up to Rs 25 thousand by taking health insurance for yourself. Apart from this, you can also avail tax exemption up to Rs 25 thousand on health insurance of parents. The total deduction in this can be up to Rs 50 thousand. If the parents are above 65 years of age, then the limit of senior citizen deduction will be Rs 50 thousand. In such a situation, you can save tax up to Rs 75 thousand. At present, you will be able to save tax on a total of Rs 50 thousand in 80D.

Now understand the complete calculation of taxable and non-taxable

• First HRA– In this, tax exemption up to Rs 1.80 lakh will be available.
• Second Reimbursement – If you add all the reimbursements together, you will get a total reimbursement of Rs 1.98 lakh.
• Third Deduction– Total deduction of Rs 3 lakh will be available.
• Fourth Leave Travel Allowance (LTA) – Tax exemption of Rs 30 thousand will be available. There will be no tax on Rs 7.08 lakh from your total salary.

Now income tax will be 0

The total annual salary is Rs 12 lakh. Of this, there will be no tax on Rs 7.08 lakh. Now the taxable salary left is Rs 4.92 lakh. Now another rule of income tax will come here. If taxable salary is less than Rs 5 lakh then you will get rebate under section 87A.

There is 5 percent tax on salary between Rs 2.5 to Rs 5 lakh, but if the total taxable salary is less than Rs 5 lakh, then a rebate of Rs 12,500 will be available on Rs 2.5 lakh. After this, the remaining Rs 2.50 lakh will be kept under the basic exemption limit. In this way your entire salary will be tax free. In this way your entire tax becomes zero (0).

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PAN card is required for any financial work in the country. Without this, no person can do many things like bank transaction, ITR file, loan application etc. There is a special number in PAN card, it is called Unique Alphanumeric Number. It is of 10 marks. A special card is issued for each person.

How much is the fine-

If caught by the Income Tax Department, you are charged a fine of more than Rs 10,000. In this, action is taken under Section 272B of the Income Tax Act 1961. The person who has two cards has to surrender one card. You can get the card transferred in both online and offline mode.

PAN-Aadhaar Link-

The government has made it mandatory to link PAN number with Aadhaar. For this, the deadline of June 30, 2023 was set. If the PAN number is not linked to Aadhaar then the PAN card becomes inactive. In such a situation, you cannot use PAN card legally. If you get the PAN card linked then you will have to pay a challan for it.

If PAN number is not linked to Aadhaar, you will not get any tax refund. Along with this, the rates of TDS and TCS will also increase. You will have to pay more tax. If you are confused whether your PAN card is linked to Aadhaar or not, then you can check by visiting the official website of Income Tax.

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This has also become the default tax regime for the financial year 2024. Most all banks offer the option to invest in tax saving FD. You can open your five year FD wherever you have a savings account.

HDFC Bank Tax-Saving FD: How to open

According to HDFC Bank, if you already have a bank account, you can open an FD by visiting the nearest branch or using your netbanking account. If you already have an account in HDFC Bank then you can open FD through your internet banking.

Go to your netbanking account. Click on FD option. Enter your branch, time period and amount and create a nominee. After this press the Continue button and verify. After this download the FD deposit receipt.

If you have an HDFC Bank account and want to open an FD in your nearest bank branch, download the FD application form before visiting the bank. Fill all the required information in the form and take a photocopy of the KYC document.

You will have to take all the original documents to your branch for KYC verification. HDFC Bank is offering up to 7.75% interest on its tax-saving FD. Tax saving FD has a lock-in period of 5 years.

Investors can claim tax exemption under Section 80C of the Income Tax Act up to a limit of Rs 1.5 lakh for investing in tax saving FDs. However, the interest received on FD will be taxable. Senior citizens can claim an additional tax exemption of Rs 50,000 under section 80TTB of Income Tax on the interest received on FD.

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