Form 16

If you are a salaried taxpayer, Form 16 is the most important document for filing your ITR. This is a TDS deduction certificate issued by your company or employer, which contains the details of salary and tax deducted and deposited on it. If your employer has deducted TDS from your salary during any financial year, it is mandatory for him to issue Form-16.

Form 16A and other TDS certificates

Apart from Form 16, the taxpayer will also have to collect other applicable TDS certificates. One such certificate is Form 16A. If the interest earned on FD in FY2022-23 exceeds Rs 40,000, the bank will deduct tax on it. You need to issue Form 16A for tax deducted on dividends paid during the financial year to mutual fund companies, provided it exceeds Rs.5,000.

Interest income and other interest certificates

While filing ITR, taxpayers have to give details of interest income received from various sources like savings account, FD etc. That’s why it is necessary to take interest certificate from banks, post offices and other financial institutions. Enter correct income details in ITR and also claim tax deductions and exemptions for your investments.

This document is also necessary to file ITR

1. Annual Information Statements (AIAs)
2. Tax Saving Investment and Expenditure Certificate
3. Capital gain from sale of property, shares, mutual funds
4. bitcoin sale documents
5. aadhaar number
6. Details of investment in unlisted shares
7. bank account details

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In the case of senior citizens, this rule will be applicable when the total TDS or TCS of the person is Rs 50,000 or more in the year. Apart from this, a person whose savings bank account has deposits of Rs 50 lakh or more in a financial year will also have to compulsorily file ITR.

What was the criteria before filing ITR

The seventh provision in section 139 of the Finance Act, 2019 provides certain criteria for return filing and makes it mandatory to file ITR if the income is below the exemption limit. Such criteria included depositing Rs 1 crore or more in current account, spending more than Rs 2 lakh for foreign travel or filing ITR if the amount for electricity consumption during the year is more than Rs 1 lakh.

ITR file under new rule

Now, vide Notification No. 37/2022 dated April 22, 2022, CBDT has notified a new Rule 12AB, which lays down additional conditions. Criteria under this- Net turnover in business during the previous year is more than Rs.60 lakhs, Net income from profession during the previous year is more than Rs.10 lakhs. On the other hand, it is mandatory to fill ITR if the total TDS or TCS is more than 25 thousand during a financial year. At the same time, ITR will have to be filed even after depositing more than Rs 50 lakh in the savings account.

what happens if not filled

According to ET’s report, this new rule makes it mandatory to file ITR on TDS of more than Rs 25,000. Due to this many taxpayers will come under this purview. Especially such taxpayers, who are doing high transactions but are not paying TDS. This will bring transparency in tax payment. Some experts say that the government can also send notices to such taxpayers.

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People earning more than Rs 3 lakh annually should file ITR. Corporate companies are also issuing Form-16 ahead of time to help their employees file ITR on time.

Currently, taxpayers will file returns for the income earned in the financial year 2022-23. By filing ITR, you declare your investments and earnings to the government. This time the last date for the ITR files to be filed has been set as 31 July 2023. In such a situation, taxpayers should start collecting all the documents related to ITR.

Category wise last date for filing ITR

1. The last date for filing returns for individual taxpayers, HUF, AOP, BOI or those whose account books are not required to be audited is 31 July 2023.
2. The last date for filing ITR for businesses whose account books need to be audited is 31 October 2023.
3. Businesses that have international transactions or specific domestic transactions have been given the last date of 30 November 2023 for filing returns.
4. The last date for filing Revised ITR and belated return has been fixed as 31 December 2023.

ITR Late Fee and Penalty

If taxpayers file their return after the prescribed last date, then they will have to pay interest at the rate of 1% per month on the unpaid tax amount under section 234A. At the same time, under Section 234F, taxpayers will have to pay Rs 5,000 as late fee for missing the due date. On the other hand, if the total income of taxpayers is less than Rs 5 lakh, then this late fee will have to be paid Rs 1,000.

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However, most taxpayers make use of Section 80C of the Income Tax Act for tax-savings. Under this, there are about a dozen such options, in which tax-savings can be done by investing. These include PPF, NPS, ELSS, Life Insurance Policies etc. But, we are telling you about such ways to save tax, which do not require any kind of investment to take advantage of them.

Tuition fees

Individual taxpayers can claim deduction on tuition fees under section 80C of the Income Tax Act. This facility is not available to HUF. You can claim this deduction on the tuition fees of two children. Tuition fee refers to the total tuition fee to be paid in a financial year.

If you do a job, you have to submit the investment proof to the finance department of your company by the first or second week of January every year. You can take the Tuition Fee Payment Certificate from the school and give it at your office. This will result in good tax-savings for you.

Education scholarship

The scholarship amount received for education is exempt from tax under section 10(16) of the Income Tax Act. Tax experts say that the scholarship received from the government or any trust is exempt from tax.

Contribution to Political Party/Charitable Organizations

If you make any kind of contribution to any political party or charitable organization, then you can claim tax deduction on it. This deduction facility is available under section 80GGC of the Income Tax Act.

Education loan

If a student has taken an education loan, then a deduction can be claimed on the interest amount. This deduction can be claimed under section 80E of Income Tax. You just have to keep in mind that this deduction is available only on the interest part of the EMI. Deduction cannot be claimed on principal.

Rent paid

If you are employed and do not get House Rent Allowance (HRA), you can claim a deduction on the rent you pay. This deduction is available under section 80GG of the Income Tax Act. Self-employed individuals can also claim this deduction. To take advantage of this deduction, it is necessary to submit Form

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This time people have many expectations before the budget. In such a situation, here we are going to talk about some budget expectations, which can be announced by Finance Minister Nirmala Sitharaman in this budget and people can also get relief from them.

Tax related announcements

Income tax related announcements are one of the keenly watched things in the budget as it affects the people and the exchequer of the government at large. It is expected that the government can provide relief to individual taxpayers by increasing the tax exemption or exemption limit. In the Union Budget 2023-24, there is also a demand to increase the limit of deduction under Section 80C from Rs 1.5 lakh at present.

Fiscal Deficit

Fiscal deficit is one of the important metrics to follow among the markets and policy makers. This reflects the health of the government’s finances and its dependence on borrowing. As per the new data available, India’s fiscal deficit during April-November 2022 stood at Rs 9.78 lakh crore or 58.9 per cent of the target for the entire fiscal year. In the same period last year, the deficit stood at 46.2 per cent of the target for the entire FY22. Fiscal deficit is the difference between the expenditure and revenue of the government.

Disinvestment target The budgeted disinvestment target for the current financial year 2022-23 is Rs 65,000 crore. Of this, the government has so far raised about Rs 31,000 crore by selling its equity in central public sector enterprises. In the last four years, the government has been continuously missing the budgetary target.

 In the Union Budget 2021-22, Finance Minister Nirmala Sitharaman had earlier set a disinvestment target of Rs 1.75 lakh crore, which was later revised to Rs 78,000 crore. However, the mop-up in 2021-22 was only Rs 13,531 crore. India’s mega IPO LIC IPO was seen in the current financial year. Now, privatization of two state-owned banks and a general insurance company is pending.

Capital expenditure

In the last budget 2022, capital expenditure was encouraged to support the economy affected by the epidemic. At the same time, some reports say that Finance Minister Nirmala Sitharaman may unveil a big spending plan for private investment for the financial year 2023-24. The government is expected to continue with its plan to increase capital expenditure in the upcoming budget 2023-24 with a special focus on states’ expenditure on capital assets.

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The new tax slabs have failed to woo individual taxpayers even after two years. As on July 31, 2022, 5.83 crore individual taxpayers have filed income tax returns for assessment year 2022-23. Of these, the number of people who opted for the new tax slab was negligible. To attract income tax payers towards the new slab, the government may change the tax rates in the budget 

• Tax exemption can be available on income up to Rs 5 lakh in the new slab. Now it is taxed at 5 per cent. The maximum slab of 30 per cent can be reduced to 25 per cent.
• Home loan interest can be exempted. Standard deduction can also be included in this.

Tax- free income may increase

At present, the minimum limit of tax exemption is Rs 2.5 lakh. There has been no change in this after 2014-15. At that time this limit was increased from Rs 2 lakh to Rs 2.5 lakh. In view of the increased need for savings after inflation and the Corona epidemic, the government can increase the basic limit to five lakh rupees. This will increase the spending capacity and the economy will benefit.

80C: There has been no announcement for years regarding the exemption available under Section 80C of the Income Tax Act, the limit of 2.5 lakhs. Due to the good current financial year on the tax collection front, the government may increase the exemption limit under 80C from Rs 1.50 lakh to Rs 2.50 lakh. The Institute of Chartered Accountants of India says that increasing the scope of 80C will give people a chance to save.

• The standard deduction limit may also be increased from Rs 50,000 to Rs 75,000.

PPF: Need to make separate provision from 80C
The annual limit for contribution to Public Provident Fund (PPF) may be raised to Rs 3 lakh from the existing Rs 1.50 lakh. This has not changed for many years. Experts say that many schemes of life insurance, children’s tuition fees, mutual funds already come under the purview of 80C. Hence, there is no scope for adequate contribution to PPF. Separate provision may be made for this.

Insurance:

The scope of 80D increased to reduce the burden Financial burden on the middle class has increased with the increased cost of health insurance after Corona. To reduce this burden, the scope of 80D can be extended to cover expenses like doctor fees and tests.

• Subhrajit Mukhopadhyay, executive director, Edelweiss Tokio Life Insurance, said that investment up to Rs 1.50 lakh is eligible for tax exemption under 80C. In such a situation, a separate provision for tax exemption can be made on the premium paid for life insurance.
• The GST rate on health insurance can be reduced from 18 per cent to 5 per cent.

Affordable housing: Need to amend the rule

Experts say that there is a need to reduce the interest rates on home loans to make home loans affordable. Although the loan rates depend on the policy rates of RBI, but the budget can give relief to home buyers by relaxing the rules for taking home loans. In this, the minimum limit of downpayment can be reduced. 

• Deduction on home loan interest under 80EEA for home buyers may be increased from the existing limit of Rs 1.50 lakh to Rs 2 lakh.
• The price band for properties under affordable housing may be raised from Rs 45 lakh to Rs 75 lakh. 

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