This will tell how much benefit the taxpayers will get from tax exemption by filing IT Return under the new tax system and how much benefit will be there under the old system. After getting this information, it will be easy to choose the new and old tax system. Let us know what the experts say about the exemptions available under the new tax system and the old tax system.

Exemptions under the new tax regime

Tax manager Surendra Pandit said that under the new tax system, if a salaried person is going to file IT return, then he will get exemption under standard deduction in the new tax system on salary up to Rs 50,000. Apart from this, there is a provision of exemption on family pension up to Rs 15,000 under the same standard deduction. He said that in the new tax system, there is a provision of exemption under normal depreciation (Income Tax Section 32) for businessmen, Income Tax Section 80CCD (2) for NPS employers, Income Tax Section 80CCH for Agniveers and Income Tax Section 80JJAA for new employees.

Also Read: Post Office RD Scheme: By depositing Rs 7000 every month, you will get Rs 4,97,400 on maturity date

Who will not get exemption under the new tax system

Surendra Pandit further said that in the new tax system, there is no provision for exemption of entertainment tax under section 16 (ii) of Income Tax and professional tax under section 16 (iii) for salaried people. Apart from this, there will be no exemption on House Rent Allowance (HRA), Leave Travel Allowance (LTA) and other types of allowances in the new tax system. Along with this, there will be no exemption under section 80C, 80D and 80G of Income Tax in the new tax system.

What is the provision of exemption in the old tax system

He said that while filing IT returns in the old tax system, there is a provision for exemption under standard deduction in the new tax system for salaried and businessmen on salary up to Rs 50,000, exemption on family pension up to Rs 15,000, normal depreciation ( Section 32 of Income Tax ), Income Tax Section 80CCD (2) for NPS employers, Income Tax Section 80CCH for Agniveers and Income Tax Section 80JJAA for new employees. Apart from this, salaried people will also be given exemption in entertainment tax under Section 16 (ii) of Income Tax and professional tax under Section 16 (iii), exemption on House Rent Allowance (HRA), Leave Travel Allowance (LTA) and other types of allowances and exemption under Section 80C, 80D and 80G.

What a taxpayer should do and what he should not do

Surendra Pandit advises taxpayers that the tax slab rate has been reduced in the new tax system. The advantage of coming to the new system is that if you claim a total exemption of Rs 4 lakh or Rs 4.5 lakh, then you have an advantage in staying in the old tax system. Now what is in this 4.5 lakh? So, if you have to claim a deduction of Rs 4.5 lakh by combining Rs 1.5 lakh in 80C, Rs 50,000 in 80D, Rs 50,000 in NPS and Rs 2 lakh interest on housing rent, then there is an advantage in choosing the old tax system, otherwise the new tax system is beneficial for common people.

File ITR on time to remain in the old system

Chartered Accountant Vinod Banka says that the point to note is that the Income Tax Department has made the new tax system by default. If a person does not opt ​​for the old tax system, he will automatically go to the new tax system. In such a situation, those who take big exemptions in income tax will not get it. They will have to opt before the option. Therefore, you will have to opt for the old tax system before filing IT returns . Not only this, it is necessary to file IT returns on time to remain in the old tax system.

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PAN is also required for filing income tax returns and for carrying out financial transactions. The main purpose of the PAN card is to use an universal identification card to monitor financial transactions that may have a taxable aspect to avoid tax. The PAN number remains unchanged by a change of address across India and also serves as an important proof of identification for an individual.

Eligibility required to apply for PAN

• Individuals receiving taxable income in India, except foreign nationals paying taxes throughout India.
• Anyone who conducts a business (whether retail, services or consulting) with net revenue, turnover or net cash in excess of Rs 5 lakh in the previous financial year.

Why PAN is mandatory to file an Income Tax Return?

Use of PAN to file Income Tax Return: A PAN card is a prerequisite to submit your income tax returns, as the government utilizes the PAN card to recognize an individual or entity from a tax perspective. The PAN card number must be recorded while filing income tax returns for individuals and entities, unless the person or entity’s income tax returns are not recognized and the government believes that the individual has not incurred his or her tax.

Use of PAN to file Income Tax Refund: Citizens and entities liable for income tax deductions after paying their taxes will be asked to cite their PAN card number in their application process. The PAN must be cited as the only form of recognition used by the government in tax related operations. Malfunction to cite the PAN in such an application will lead to the request not being approved and the individual/entity will not be refunded.

Use of PAN to track IT return status: Taxpayers should monitor the status of their refund on the government page. By entering the individual/entity PAN card number after the claim for income tax refund has been filed one can check his or her IT return status.

Use of PAN to file TDS certificates: TDS i.e. Tax Deducted at Source form of tax collection introduced by the Government of India by which the amount of the tax is withheld at the time the amount is charged to the respective taxpayer. Businesses, traders or any organization that subtracts TDS are supposed to have a TDS certificate specifying the amount of tax that has been withheld. A TDS certificate must also include the PAN number of the payee in all records, such as the TDS refund, the perquisite declaration and the income in favor of salary.

PAN Card for not be overtaxed: Taxpayers who do not want to be overtaxed can submit their PAN specifics at the time of filing their returns. since the government will have a database of their expenses and will only measure tax without evaluating exemptions. That being said, for individuals and organisations who do not cite their PAN numbers, the government will charge a flat tax of 30 per cent irrespective of the tax leaf to which the individual or entity is subject. Thus, having a PAN card lets the user from paying more than he/she wants to.

In case you have multiple PAN Cards: As per the guidelines, having multiple PAN cards under your name is an offense. A liability of Rs.10,000 will be imposed under Section 272B of the Income Tax Act if it is found to have multiple PANs. In case you have more than one PAN, it’s best to give it up instantly.

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Every year people have to file income tax return. The last date for filing income tax returns for the financial year 2021-22 was July 31, 2022. Many people could not file the return on the last day due to technical difficulties. Through social media, people are also demanding to increase the deadline for filling ITR. Those people need not despair. Returns can be filed by 31st December 2022. For this you will have to pay late fee. This late fee is collected as income tax return penalty.

This late fee has to be paid , the date of filing IT return varies according to the category of taxpayer. Salaried people have to file ITR by July 31. Those who will not be able to file the return by the last date will have to pay the late fee. If someone’s income is more than Rs 5 lakh, he will have to pay Rs 5000 as late fee by the last date December 31, 2022. At the same time, those earning less than 5 lakh will have to pay a late fee of Rs 1,000.

These people have to file the return by 31 October, corporate and business can file the return till 31 October. Corporates or those who need to audit their accounts. You can file your return till 31st October. No penalty is levied on these people for filing returns by October 31. The existing income tax rules provide for imprisonment of not less than 6 months and imprisonment for a maximum of 7 years. The department can prosecute you in every case of failure to file ITR.

The post ITR Filing AY 2022-23 Live Updates: These people can file ITR till 31st October, see here details first appeared on Rightsofemployees.com.

Let us tell you that a screw is stuck in the last date for filing ITR. Actually, July 31 is a Sunday. That is, banks will be closed on this day. In such a situation, taxpayers should not wait for the last day and should file their ITR within five days of this week.

What do experts say?

Advising taxpayers not to depend on bank holidays and last date for filing ITR, Aarti Raote, Partner, Deloitte India said, “ITR filing is online and can be done anytime, so public holidays are no longer a cause for concern. This used to be an important topic in the days of manual filing earlier. However, it is being said that it would be wise not to wait till the last date of filing to avoid heavy internet traffic on the last day when the system can get jammed. ”

Do not wait for the last date

Taxbuddy.com founder Sujit Bangar advises taxpayers not to wait for the last date to file ITR for the year 2022-23, saying, “Many taxpayers due to 31st July being a bank holiday At the same time, there may also be problems on the income tax portal due to heavy traffic jams. He further added that due to bank holidays, net banking may also not function properly as it does on weekdays. So it is better to file ITR at the earliest instead of waiting for the last date to file ITR.”

What will be the impact of late filing of ITR

Sujit Bangar said, “The consequences of late filing can be very serious. There is a penalty for late filing of return. If you pay tax after July 31 , then a separate penalty interest of 1% will have to be paid every month. Hence, it is advisable to file income tax return without any delay.” 

How to file ITR?

1. To file ITR sitting at home, you have to first go to https://eportal.incometax.gov.in/
2. After that you will have to give user ID and password here. After entering the password, click on the Continue option.
3. Click on File Income Tax Return option and select Assessment Year.
4. Select the online mode of filing. After this select ITR-1 or ITR-4 form. 
5. Salaried person has to select ITR-4 form.
6. After downloading the return form and selecting 139(1) on the filling type, a form will open in which fill all the information.
7. After this cross verify the given information and submit it. 
8. After the submission of the form, its confirmation message will come on your mail id and mobile number. 

The post Attention Taxpayers! File income tax return within 5 days, wait for last day will be heavy first appeared on Rightsofemployees.com.