Also Read | File Online Police Complaint: Universal Step-by-Step India Guide.

Cash at Home: Why Unexplained Money Can Cost You 84%

India’s rules for cash dealings are much tighter now. The government is strengthening laws to curb unaccounted money.² Let’s be real. If the Income Tax Department finds cash at your place, and you cannot explain where it came from, the penalty is extreme.³

CA Sarthak Ahuja, an investment banker, recently explained the breakdown:

• The total tax and penalty combined is 84%.⁴

• This 84% covers the base tax, plus a surcharge, a cess, and a hefty penalty.⁵

In simple terms, nearly every rupee of unaccounted cash can be taken by the department. It almost completely wipes out the amount they find.

How Officials Find Out

The government’s tracking systems are far more advanced now. Banks and financial institutions share data with the tax department automatically. This makes it easy to spot unusual cash movements that do not match a person’s declared income.

• Bank Reporting: If you withdraw more than ₹10 lakh as cash from your savings account in a year, the bank must report it to the I-T Department.

• TDS Deduction: If you withdraw over ₹20 lakh in a year, the bank will also deduct TDS (Tax Deducted at Source).⁶

If officials sense anything suspicious based on this data, a search or inquiry follows.

Cash Penalties Are Heavy, Or Nothing

The strict rules apply to receiving cash, giving cash, and property deals. The penalty is often 100% of the transaction value.

As Ahuja advised, “Please be mindful, the government can literally catch anyone today with the amount of information they have on your transactions.” It is vital to use banking channels for all large dealings.

Also Read | File Online Police Complaint: Universal Step-by-Step India Guide.

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The post Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules. first appeared on Rightsofemployees.com.

 ITR Rules for Freelancers: Usually, income tax stories talk about salaried people. We ignore freelancers. Today we will know how freelancers can file ITR. Along with this, if they file ITR under the old tax regime, then under which section can they claim tax deduction. Also, what is the tax slab for freelancers?

The post Must-Know ITR Rules for Freelancers: Filing, Deductions & Compliance first appeared on Rightsofemployees.com.

The Finance Ministry has announced that from now onwards such senior citizens above 75 years of age will not have to file income tax returns. Let us tell you that those senior citizens who have only pension or interest from the bank, then they will not have to file ITR. The Finance Ministry has given information about this by tweeting.

Under which act will you get the benefit?

The government has told that a new section Section 194P has been added to the Income Tax Act, 1961, under which senior citizens will get this benefit.

CBDT has given the information

While giving the information, the Central Board of Direct Taxes has told that a notification has been issued regarding this. Apart from this, amendments have also been made in Rule 31, Rule 31A, Form 16 and 24Q and this sector has been operationalized.

The last date to start manufacturing has been extended by 1 year for full tax benefits as promised . Now its last date has been made 31 March 2024. The Income Tax Act, along with making provisions for tax on the income of citizens, also provides many concessions and exemptions. Tax payers also get a lot of relief from these concessions and exemptions. Keeping this in mind, an important decision was taken by the Modi government in the budget of 2018.

The post Big change in ITR rules! From today these people do not have to pay income tax first appeared on Rightsofemployees.com.

The government has made a big change in the ITR rules. From now on, certain people will not have to file income tax returns. Finance Minister Nirmala Sitharaman had announced this in the budget.

The Finance Ministry has announced that from now onwards such senior citizens above 75 years of age will not have to file income tax returns. Let us tell you that those senior citizens who have only pension or interest from the bank, then they will not have to file ITR. The Finance Ministry has given information about this by tweeting.

Under which act will you get the benefit?

The government has told that a new section Section 194P has been added to the Income Tax Act, 1961, under which senior citizens will get this benefit.

As announced in Budget FY 2022-23, senior citizens above 75 years of age, having only pension and interest income, are now exempted from filing Income Tax Return. #PromisesDelivered pic.twitter.com/iuyIzyQPnJ

— NSitharamanOffice (@nsitharamanoffc) January 5, 2023

CBDT has given the information While giving the information, the Central Board of Direct Taxes has told that a notification has been issued regarding this. Apart from this, amendments have also been made in Rule 31, Rule 31A, Form 16 and 24Q and this sector has been operationalized.

The last date to start manufacturing has been extended by 1 year for full tax benefits as promised . Now its last date has been made 31 March 2024. The Income Tax Act provides many concessions and exemptions along with making provisions for tax on the income of the citizens. Tax payers also get a lot of relief from these concessions and exemptions. Keeping this in mind, an important decision was taken by the Modi government in the budget of 2018.

The post Income Tax: issued notification ! from today these people do not have to pay income tax, know full details first appeared on Rightsofemployees.com.

Department issued orders!

As per the order, the Income Tax Department has reduced the deadline for submission of hard copy of ITR-V e-verification or ITR-V after filing of income tax returns to 30 days from the existing 120 days, with effect from August 1, i.e. today. Has been done. The department had announced the change in the deadline by issuing a notification on July 29.

These rules will be applicable to taxpayers who file their income tax returns on or after August 1. According to the new notification of CBDT, now the date of furnishing the return electronically will be deemed to be the same when Form ITR-V is submitted within 30 days from the date of transmission of data electronically.

verification is mandatory

As per income tax laws, ‘ITR will not be considered valid if it is not verified after filing. As per the rule you can verify this in six ways. Generally, audit of ITR-1, ITR-2 and ITR-4 is not required. Let us know in which ways ITR can be verified.

ITR can be e-verified by these methods
1. Through Aadhaar OTP
2. By logging into e-filing account through Net banking
3. EVC through bank account number
iv. EVC through Demat Account Number
v. EVC through Bank ATM
vi. By sending signed copy of ITR-V through post to CPC, Bengaluru

How to E-Verify ITR through Aadhaar
Step 1: Visit https://www.incometax.gov.in to access your e-filing account.

Step 2: Select e-Verify Return option under Quick Links.

Step 3: In this, select Verify using OTP on the mobile number registered with Aadhaar. Then click on e-Verify screen.

Step 4: Select ‘Agree to verify Aadhaar details’ as checked on the Aadhaar OTP screen. Then click on Generate Aadhaar OTP.

The post IT Department issued orders! Big Change In ITR Rules, Know The New Deadline first appeared on Rightsofemployees.com.

If you have not yet filed Income Tax Return, then fill it immediately. Till now the last date for filing income tax return is 31st July. Although there is a demand to increase it in many places by bringing it from social media, but, the government has clearly refused to extend its last date, that is, now you have to file income tax before July 31 in any case.

If you are also a tax payer then this news is very important for you. The government has changed the rules for filing tax returns. Actually, the Finance Ministry has increased the scope of income tax filing to bring more people into the tax bracket.

It is worth mentioning that some time ago the Ministry of Finance issued
a notice and informed about this. According to this notification, now people with different income group and income will also have to file income tax return. Under the new rule, now more and more people can be brought under the tax net. These new rules will be considered effective from April 21.

Know what the new rules say?

According to the new rule, if the sales, turnover or income in any business is more than 60 lakhs, then the businessman will have to file a return. Even if the earning of a salaried person is more than Rs 10 lakh per annum, they will still have to file ITR. Income tax return has to be filed even if the amount of TDS and TCS is more than Rs 25,000 in a year. Let us tell you that the limit of TDS + TCS has been kept at Rs 50,000 for taxpayers who are 60 years or more.

The post ITR Filing Update: Big Change in ITR Rules! Finance Ministry issued new orders first appeared on Rightsofemployees.com.

If you file Income Tax Return (ITR) every year, then this news is of your use. This time, before filing ITR, definitely take a look at the changes made by the Income Tax Department. Income tax return forms for the financial year 2021-22 (Assessment Year 2022-23) have been issued by the Income Tax Department.

This time not much change has been made by the Income Tax Department. But still some things have changed. Taxpayers will have to provide some additional information. If you are not aware of these changes, you may face trouble in filing ITR. Let us know about such information which you have to give while filing ITR.

1. Taxable Interest in PF Account
If your contribution in EPF account is more than Rs 2.5 lakh every year, then you will have to pay tax on the interest earned on the additional contribution. You will have to give information about this interest in the ITR form.

2. Information about buying or selling property
If you have bought or sold any kind of property between the period of April 1, 2021 to March 31, 2022, then you will have to give this information along with the date. In the ITR form, you are required to mention the date of purchase or sale under Capital Gains.

3. Information about the renovation of the
house If you have spent on the renovation of the house, then this information will also have to be given on year to year basis. This cost has to be deducted from the selling price to arrive at long term capital gain.

4. Actual Cost of Buying
While giving information about capital gains, you were required to mention only index cost now. But from this time onwards, you will have to specify the index cost as well as the actual cost of buying the property (market rate).

5. This information is also required for residential status
While filing ITR, it has been made mandatory to state the residential status. If you are filling ITR-2 or ITR-3 form then you have to opt for residential status support. In this option, you will have to tell how long you have been living in India.

6. Information about avoiding tax on ESOP
In the budget of the year 2020, it was announced that employees of a startup can avoid paying tax on ESOP. However, it has some conditions. This time during ITR filing, the employee will have to give information about the amount of tax deferred.

7. Property and income
abroad If you have a property abroad or have earned dividend or interest from any property abroad, then it is necessary to give this information while filing ITR. Form-2 and Form-3 can be used for this.

8. Information
about property sold outside the country If you have sold any property outside the country, then this information will have to be given at the time of ITR filing. In the ITR filing, the buyer and the address of the property have to be given.

9. Enhanced category for pensioners In the
ITR form, pensioners will have to tell about the source of pension. Pensioners have to choose any one of the given options in the Nature of Employment drop-down menu. If you are a central government pensioner, choose Pensioners-CG, if you are a state government pensioner, choose Pensioners-SC. Similarly, if there are pensioners of a public sector company, then Pensioners-PSU will have to be selected.

The post New ITR Rules: ITR rules income Tax return forms for FY-2021-22 Taxpayers have to give these information first appeared on Rightsofemployees.com.

If you file Income Tax Return (ITR) every year, then this news is of your use. This time, before filing ITR, definitely take a look at the changes made by the Income Tax Department. Income tax return forms for the financial year 2021-22 (Assessment Year 2022-23) have been issued by the Income Tax Department.

This time not much change has been made by the Income Tax Department. But still some things have changed. Taxpayers will have to provide some additional information. If you are not aware of these changes, you may face trouble in filing ITR. Let us know about such information which you have to give while filing ITR.

1. Taxable Interest in PF Account
If your contribution in EPF account is more than Rs 2.5 lakh every year, then you will have to pay tax on the interest earned on the additional contribution. You will have to give information about this interest in the ITR form.

2. Information about buying or selling property
If you have bought or sold any kind of property between the period of April 1, 2021 to March 31, 2022, then you will have to give this information along with the date. In the ITR form, you are required to mention the date of purchase or sale under Capital Gains.

3. Information about the renovation of the
house If you have spent on the renovation of the house, then this information will also have to be given on year to year basis. This cost has to be deducted from the selling price to arrive at long term capital gain.

4. Actual Cost of Buying
While giving information about capital gains, you were required to mention only index cost now. But from this time onwards, you will have to specify the index cost as well as the actual cost of buying the property (market rate).

5. This information is also required for residential status
While filing ITR, it has been made mandatory to state the residential status. If you are filling ITR-2 or ITR-3 form then you have to opt for residential status support. In this option, you will have to tell how long you have been living in India.

6. Information about avoiding tax on ESOP
In the budget of the year 2020, it was announced that employees of a startup can avoid paying tax on ESOP. However, it has some conditions. This time during ITR filing, the employee will have to give information about the amount of tax deferred.

7. Property and income
abroad If you have a property abroad or have earned dividend or interest from any property abroad, then it is necessary to give this information while filing ITR. Form-2 and Form-3 can be used for this.

8. Information
about property sold outside the country If you have sold any property outside the country, then this information will have to be given at the time of ITR filing. In the ITR filing, the buyer and the address of the property have to be given.

9. Enhanced category for pensioners In the
ITR form, pensioners will have to tell about the source of pension. Pensioners have to choose any one of the given options in the Nature of Employment drop-down menu. If you are a central government pensioner, choose Pensioners-CG, if you are a state government pensioner, choose Pensioners-SC. Similarly, if there are pensioners of a public sector company, then Pensioners-PSU will have to be selected.

The post New ITR Rules: ITR rules income Tax return forms for FY-2021-22 Taxpayers have to give these information first appeared on Rightsofemployees.com.