In the new income tax regime, certain allowances are exempted from tax. There are certain conditions for this. According to the Economic Times report, Harsh Bhuta, partner of tax consulting firm Bhuta Shah & Co., says that there are certain allowances in the new regime that are not taxable. These can be availed by fulfilling the conditions related to them. However, for this, your salary structure will have to be changed. You can talk to your employer’s HR department about this.

Telephone and Mobile Bills

A person can claim exemption on telephone and mobile bill expenses provided by the employer. There is no limit for this. According to ET report, Yogesh Kale, Executive Director, Nangia Andersen LLP says that there is no limit for exemption on telephone and mobile bills in both the regimes. However, this amount should be practical. It should be according to the position and responsibilities of the employee. If mobile or internet bill is not included in your salary structure, then you can include it.

Transport allowances to disabled employees

Companies give transport allowance to Divyang employees. This does not come under the purview of tax. This allowance is given for travelling from home to office and office to home. According to ET report, Divyang employees get Rs 3,200 per month i.e. Rs 38,4000 annually as transport allowance, which does not come under the purview of tax.

Conveyance Reimbursement

This facility is provided by the employer to the employee to facilitate his work. This is different from the transport allowance. To avail this allowance, the employee has to submit the bill to the finance department of his office. If you want to avail this facility, then you will have to talk to the HR department of your employer.

Employer’s car lease policy

Many employers offer car lease facility to employees. Although it is considered as perquisite under income tax rules, its value is very low. In ET’s report, experts say that the perquisite value of a car given by the employer to the employee for personal and official use is very low. The valuation formula for this is the same in the new and old regime. If the engine capacity is less than 1.6 liters, then the taxable value of this perquisite will be Rs 1,800 per month. If the engine is of more power than this, the taxable value of the perquisite will be Rs 2,400.

In the new income tax regime, a standard deduction of Rs 75,000 is available. Apart from this, the employer’s contribution of up to 14 percent in NPS is not taxable. Similarly, the employee’s contribution of 12 percent in EPF is not taxable. In this way, if you use all these exemptions and deductions, then your salary up to Rs 17 lakh will become tax-free.

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It becomes difficult to correct the incorrect information entered in the AIS at the last minute. Therefore, income taxpayers should check their AIS every quarter. Quarterly check will inform you about any incorrect information in time and give you enough time to correct it before filing the ITR. You can check the AIS online on the official website of the Income Tax Department.

AIS records the details of all financial transactions made by the income tax payer during the financial year. It includes information like interest, dividends, share related transactions, mutual fund transactions and money received in the account from abroad. Apart from this, this statement also contains all the information required under the Income Tax Act, 1961.

More information than Form 26AS

AIS contains more information than Form 26AS. While Form 26AS contains information about property purchases, large investments and TDS/TCS transactions, additional information like savings account interest, dividends, rental income, purchase and sale of securities, money received from abroad and GST turnover is also recorded in AIS.

How to check AIS?

• Visit the official website of the Income Tax Department.
• Log in to your account.
• Click on the ‘Annual Information Statement’ option in the ‘Services’ tab on the e-Filing portal.
• Select the relevant fiscal year.
• The AIS will be displayed in front of you, which you can also download.

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Generally, the last date for filing belated return and revised return is 31st December. But, this time the Central Board of Direct Taxes (CBDT) has extended this deadline till 15th January after the order of the Bombay High Court.

What is belated income tax return?

If a taxpayer is unable to file Income Tax Return by 31st July, then the Income Tax Department gives him a chance to file ITR by 31st December. This is called Belated Return . Taxpayers filing belated return have to pay a penalty. The penalty for income more than Rs 5 lakh per annum is Rs 5,000. The penalty for people with an annual income of less than Rs 5 lakh is Rs 1,000. Apart from this, interest is also charged on the tax of taxpayers.

What is the meaning of Revised Income Tax Return?

If a taxpayer feels that wrong information has been entered in his income tax return, he can file a revised return. Generally, its deadline is 31 December. This time the deadline for this has also been extended by 15 days. This means that a taxpayer can revise his income tax return till January 15, 2025. This facility has been provided by the Income Tax Department keeping in mind such taxpayers who inadvertently forget to mention any income related information in ITR.

What will happen if belated return is not filed?

If a taxpayer does not file a belated income tax return by January 15, 2025, then he is allowed to file ITR-U under section 139(8A) of the Income Tax Act. For this, he will have to pay a penalty of Rs 5000. Apart from this, additional tax of 25 percent or 50 percent of the tax amount will also have to be paid. This will depend on when the taxpayer files ITR-U. ITR-U for FY24 can be filed till March 31, 2027. Actually, it has to be filed within 2 years of the end of the relevant financial year.

What are the benefits of filing returns by July 31?

Tax experts say that CBDT has allowed those taxpayers to file income tax returns even after the deadline, who for some reason miss filing ITR by the last date. But, taxpayers do not get many facilities on filing belated or ITR-U. Therefore, taxpayers should try to file income tax returns by the due date i.e. 31st July.

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In fact, the Income Tax Department has warned taxpayers that if they do not disclose their assets located abroad or income earned abroad in the ITR, then they may be fined Rs 10 lakh under the Anti-Black Money Law.

The Income Tax Department on Saturday issued a public consultation under the recently launched ‘Compliance cum Awareness Programme’ to ensure that taxpayers enter such information in their Income Tax Returns (ITR) for the assessment year 2024-25.

This information has to be given

The advisory clarified that foreign assets for a tax resident of India in the previous year include bank accounts, cash value insurance contracts or annuity contracts, financial interest in an entity or business, immovable property, custodian account, equity and debt interests, trusts in which the person is a trustee, beneficiary of the settler, accounts with signature authority, any capital asset held abroad, etc.

The department said taxpayers falling under this criterion must ‘mandatorily’ fill the Foreign Asset (FA) or Income from Foreign Source (FSI) schedule in their ITR even if their income is “below the taxable limit” or the assets abroad are acquired from “undisclosed sources”.

A fine of up to Rs 10 lakh can be imposed

According to the consultation, “Non-disclosure of foreign assets/income in ITR may attract a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The Central Board of Direct Taxes (CBDT), the administrative body for the tax department, had said that under the campaign, it will send ‘informative’ SMS and emails to resident taxpayers who have already filed their ITR for the assessment year 2024-25.

31 December last date

This communication will be sent to individuals who have been ‘identified’ through information received under bilateral and multilateral agreements, which ‘suggest’ that these individuals may hold foreign accounts or assets, or have received income from foreign jurisdictions. The last date for filing late and revised ITR is December 31.

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Soon you will get Form-16 from the office and will have to file ITR by 31st July. But if you are also in tension regarding the tax money, then this news will definitely give you relief. Let us help you in planning for tax saving.

Understand here, how can you save tax?

Before filing ITR, make sure that in which schemes have you invested for your family? Today, from mutual funds to FDs, all investment options are available in the market. Today we talk about your salary and tax. Even if your salary is Rs 12 lakh, even then you do not need to pay Rs 1 tax.

Planning is necessary

To save tax, it is necessary to plan properly. For this, you can also consult an expert. If your company has deducted your tax for any reason, then by filing ITR, you can get back the deducted extra money. On the basis of 12 lakh salary, you come under 30 percent tax under the old tax regime. Actually, there is a liability of 30 percent on the annual income of more than Rs 10 lakh. For those with an annual income of Rs 12 lakh or more, it would be better to opt for the old tax regime. Let’s see the complete calculation…

This is the complete math

1. Every company gives salary to the employees in 2 parts. In a company it is called Part-A and Part-B. Somewhere it is called Part-1 and Part-2. Tax has to be paid on Part-A or Part-1 salary. Usually, on a salary of 12 lakhs, two lakh rupees are kept in Part-B or Part-2. In this way your taxable income has come down to Rs 10 lakh.

2. After this, deduct Rs 50,000 given by the Ministry of Finance as standard deduction. After deducting these, your taxable income comes down to Rs 9.50 lakh.

3. Under Section 80C of Income Tax, you can claim savings of up to Rs 1.5 lakh. In this, you can claim tuition fee, LIC (LIC), PPF (PPF), mutual fund (ELSS), EPF (EPF) or home loan principal etc. Now your taxable income has come down to Rs.8 lakh.

4. Under section 24B of income tax, you get a deduction of two lakh rupees on home loan interest. In this way, your taxable income has come down to Rs.6 lakh here.

5. After this you will have to invest 50 thousand rupees in National Pension System (NPS) under 80CCD (1B) to make the taxable income zero (0). Here the taxable salary has come down to Rs 5.5 lakh per annum.

6. Under Section 80D of Income Tax, you can claim premium for health insurance for children, wife and parents. A premium of up to Rs 25,000 can be claimed for the child and wife. If your parents are senior citizens, you can claim Rs 50,000 as premium. After deducting these two, your taxable income comes down to Rs 4.75 lakh.

There is a 5 percent tax on income from Rs 2.5 lakh to Rs 4.75 lakh. Accordingly, a tax of Rs 11,250 is made on Rs 2.25 lakh. But rebate is given by the Ministry of Finance on tax up to Rs 12500. In this way, your tax liability became zero even on a salary of 12 lakhs.

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Due to which now those having an annual income of seven lakh rupees will not have to pay any tax. However, this can be possible due to the rebate given by the government. This exemption is available under Section 87A of the Income Tax Act. In 2013-2014, tax rebate was introduced under Section 87A through the Government of India. Presenting the Union Budget 2023-24 on February 1, 2023, Finance Minister Nirmala Sitharaman has announced a change in this income tax exemption under the new income tax regime. Let’s know about it…

What is Income Tax Rebate?

Simply put, income tax rebate is a form of refund on your income. The Income Tax (IT) Department provides this refund or exemption under certain circumstances. Taxpayers are liable to get income tax rebate when they have paid tax in excess of the amount payable to the Income Tax Department in a financial year. To avail income tax exemption, you must ensure that you calculate your tax liability correctly and file your income tax return within the stipulated time.

What is section 87A?

Under the provisions of section 87A of the Income Tax Act, a resident Indian individual whose total income for the financial year does not exceed the prescribed limit, is provided a rebate of 100% on the income tax payable. Till the financial year 2022-23, the income limit for claiming exemption under section 87A was Rs 5 lakh. This means that for the financial year 2022-23, a person whose income was up to Rs 5 lakh was not required to pay any income tax.

Tax Exemption

The maximum income limit for claiming exemption under section 87A has been amended from time to time. In the Union Budget 2019, the government increased the maximum limit of net taxable income to Rs 5 lakh for claiming exemption under section 87A. At the same time, in the Union Budget 2023, Finance Minister Nirmala Sitharaman announced that the rebate under Section 87A will be increased from Rs 5 lakh to Rs 7 lakh, which has brought a big sigh of relief for India’s growing middle class population.

Tax Slab

In the new tax regime, the exemption limit has now been increased to Rs 7 lakh. Thus, in the new tax system, people with income up to Rs 7 lakh will not have to pay any tax. This means that from FY 2023-24 an individual taxpayer who is a resident of India will now be entitled to claim income tax rebate of 100% of the income tax payable on total income above Rs 7 lakh.

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