Tax on income other than farming

If there is income from other business or job apart from farming, then the rules change. Tax is calculated by adding income outside farming to the total income. This is called partial integration of agricultural income. That means income outside farming can be taxed.

Different rules apply to professional farming.

If a person does contract farming or big corporate farming and his earnings are treated as business income, then tax will be levied. This happens when the farming activities are less and processing is more. In such cases, the income is considered as business income.

No tax on subsidy or grant received for farming

The subsidy received from the government or state government is completely tax free. It is exempted under section 10(1) of the Income Tax Act. Subsidy received on farming equipment or seeds is also included in this. This benefit is given to reduce the cost of farmers.

If the land is leased, then the rules will be different.

If the farmer earns by giving his land on rent, then this income will be considered as rental income, not agricultural income. In such a situation, it will come under the purview of income tax. That is, if you do not do farming, you will not get the benefit of exemption.

Rules are different on gardening and forest products.

Income is earned by selling wood or plant products from the forest. If it is earned naturally, then it will not be considered as agricultural income. Tax may have to be paid on this income. Only the income from gardening done through farming is exempted.

There is no tax on the income from agriculture.

The income from agriculture is exempted from income tax. This means that there is no tax on the income from agriculture. This exemption applies to the income earned by selling the produce of the farm. This provision has been made to provide financial relief to the farmers.

When is there a need to file ITR?

If the non-agricultural income is more than the basic exemption limit, then it may be mandatory for such a farmer to file ITR. Tax will be calculated by adding agricultural income. However, there is no tax on farming income.

It is important to keep documents and proofs.

Keep farm details and sales bills to show agricultural income. If the Income Tax Department asks for proof, these will come in handy. Especially when the farmer has income from other sources as well. Keeping the right documents can help avoid tax disputes.

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Who has to deposit advance tax

Every taxpayer having an estimated tax liability of ₹ 10,000 or more in a financial year is required to pay advance tax. According to ICICI Bank, salaried individuals can pay advance tax on income earned from their jobs. Freelancers can pay advance tax on their various sources of income earned throughout the year. Businessmen can pay advance tax on income earned through their company under the taxation scheme of Section 44AD. Senior citizens who have earned income from business in a financial year are required to pay advance tax.

Important dates for depositing advance tax

Advance tax has to be paid throughout the year by the due dates. 15% on or before 15 June, 45% on or before 15 September, 75% on or before 15 December and 100% on or before 15 March.

Why is it important to pay advance tax

According to ICICI Bank, advance tax is income tax paid in advance for income earned in a particular financial year. Normally, tax must be paid when the income is earned. However, under the tax provisions of advance tax, the payer has to estimate the income for the entire year. And based on this estimate, tax is paid at certain time intervals. It is important that the taxpayer estimates the income and then calculates the estimated tax on it to know whether he needs to pay advance tax or not and how much.

How much does it cost to miss a deadline

As per Section 234B of the Income Tax Act, you are required to pay at least 90% of your total tax due by way of advance tax or tax deducted at source/tax collected at source (TDS/TCS) by March 31. If you fail to pay the advance tax, you will have to pay interest at the rate of 1% on the unpaid amount under Section 234B.

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All the Additional Municipal Commissioners of the Municipal Corporation, Chief Tax Assessment Officer Ashok Singh, all Zonal Officers, Tax Superintendents and Inspectors attended the meeting. The Commissioner said that there has been a great progress in tax collection in the last financial year and this has been possible due to the cooperation of the city residents and the hard work of the officers. He said that the citizens have expressed their trust in the corporation by voluntarily paying taxes.

Opportunity to get 10% discount till 30th April

The Municipal Commissioner informed that a special discount of 10% is being given to the citizens on paying tax online till 30th April. He appealed to the people of Lucknow to take advantage of this digital facility and save time and resources by paying tax from home.

Better facilities will be available in zonal offices.

The Municipal Commissioner directed that arrangements for drinking water, shade and fans etc. should be ensured for tax payers in all zonal offices, so that citizens do not face any inconvenience in the summer. For those citizens who are unable to make online payments, an 8% discount will be given on paying cash tax in zonal offices. This facility is considered to be a big relief for citizens who are away from technology.

Tax plays an important role in the development of the city.

Inderjit Singh said that the money received from tax will be used to repair roads, water supply, sanitation and other basic facilities in the city. He appealed to the citizens to pay tax on time so that Lucknow can be made a clean, beautiful and smart city.

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The Central Board of Direct Taxes (CBDT) said in a statement, “The e-pay tax facility is a better, efficient and convenient way for taxpayers to fulfill their tax obligations.” According to the statement, long queues in banks, tedious form filling process and last minute tax payment worries are now a thing of the past.

‘Problems resolved’

Realising the need for simpler and more accessible payment methods and taking another step towards digitally empowering taxpayers, the Income Tax Department has launched the ‘e-Pay Tax’ facility on its official online portal.

The tax department said, “This facility also encourages a culture of timely compliance by eliminating problems in the tax payment process. This brings the tax system closer to the citizens. It provides easy digital routes especially for individuals and small entrepreneurs.

Which taxes can be paid

Income Tax, Advance Tax, Self Assessment Tax, TDS/TCS, Goods and Services Tax, Banking Cash Transaction Tax etc. can be paid on the e-Pay Tax portal.

To use the facility of ‘e-pay tax’, visit the Income Tax Department’s website incometax.gov.in. Choose the option of ‘e-pay tax’ there and enter your PAN number and mobile number linked to Aadhaar. After this you can easily pay the tax amount.

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At the same time, there is a provision of financial penalty, penalty, interest recovery and even legal action for tax evasion or non-payment. Taxpayers in India get the option to choose between two income tax regimes. Old tax regime and new tax regime. Each system has its own rules and tax slabs, so that a person can choose the best option according to his financial circumstances. Let us know what action can be taken against you if you do not pay tax.

This action can be taken for not paying tax

Penalty for late filing (Section 234F): Failure to file income tax returns by the due date attracts a penalty. If your total income is more than ₹5 lakh, the penalty is ₹5,000. For income up to ₹5 lakh, the penalty is ₹1,000. Section 234A Interest is charged at the rate of 1% per month for delay in filing returns.

Notice from Income Tax Department (Section 156): The Income Tax Department can issue demand notices under Section 156, requiring payment of dues within a specified time limit. Ignoring these notices can lead to legal action.

Penalties for tax evasion (Sections 270A, 276CC): Tax evasion, whether intentional or unintentional, attracts severe penalties. Misrepresentation of income attracts a penalty ranging from 50% to 200% of the underreported tax under Section 270A.

Property Seizure: In case of repeated non-compliance of income tax notices, the income tax department can seize assets such as property and vehicles to recover the outstanding amount.

Financial reputation and travel ban: Not paying taxes can negatively impact your credit score and make it difficult to obtain loans or credit in the future. In severe cases, the Ministry of Foreign Affairs may revoke passport issuance, restricting international travel.

Trial and Imprisonment: In significant cases of tax evasion, a court trial is possible, which can result in imprisonment for anywhere from three months to seven years, along with hefty fines.

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2 crore returns filed till July 11

The Income Tax Department said in a notification released on Twitter on Tuesday that two crore income tax returns have been filed till July 11 for the assessment year 2023-24. Last year, till July 20, two crore income tax returns were filed.

The Income Tax Department tweeted,

the Income Tax Department has said in its tweet that with the help of taxpayers, we have achieved the figure of two crore nine days earlier this year than last year. The tax department has asked those who have not yet filed returns for the assessment year 2023-24 to file returns as soon as possible to avoid last minute rush.

These people do not have to pay tax.

Under the new tax regime, income up to Rs 7 lakh is tax free. Similarly, if someone selects the old tax regime, then for those below 60 years of age, this exemption is Rs 2.5 lakh and for those above 60 years of age, this exemption is up to Rs 3 lakh.

File ITR before 31st July,

this time you can file income tax return till 31st July 2023. After this, if income tax return is filed, then penalty can be imposed. Income tax payers are constantly being made aware by the Income Tax Department. It is told by the department that to avoid any kind of penalty, file ITR on time.

Who will not have to pay penalty

Let us tell you that if your total income till the financial year 2021-22 is Rs 2.5 lakh or less, then you will not have to pay penalty for filing income tax after 31st July. The ITR filed on your behalf will be called Zero (0) ITR.

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Have you heard about Service Tax? Service tax is levied on the services provided by a business. Similarly, Service Tax On Property has to be paid on the property as well. Property owners have to take care of many things while buying a house. Firstly, there is always a confusion regarding whether service tax is payable on property. Today we will tell you when this tax has to be paid on the property.

When a buyer purchases a property, the ownership is transferred to that person and the seller becomes the service provider of the property on which service tax is payable. However, the same has to be paid before the Competent Authority issues the completion certificate.

What is service tax and when it is levied.

There are two types of property, ready to move and under construction. In the real estate sector, service tax is levied only on under-construction properties. It is charged on any property, building complex or civil structure offered for sale. Service tax is levied on under-construction property by the builder or real estate developer at the time the building complex, civil structure or parts are offered for sale.

No tax to be paid on ready

to move In ready to move in property mainly there is no need to pay any service tax. The reason for this is that the property developer is selling such a property which is completely built. It is not providing any service to the buyer of the property. Property transactions attract high taxes and provide many opportunities to taxpayers to save tax. Hence, it is advised to take tax related advice from a professional before buying/selling any property.

Exemption is available in these cases

The rate of service tax on property is 3.75 per cent or 4.5 per cent, depending on the size of the property and the value of the transaction. Service tax is exempted on the sale of a single owner stand alone residential building. Apart from this, low-cost houses whose carpet area is up to 60 square meters. In this, the housing project should be approved by the competent authority under the scheme of Affordable Housing made by the Ministry of Housing, Government of India.

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If someone’s income in a year is taxable, then he also has to pay tax. But many types of exemptions are also available while paying income tax. Even if your income is taxable, you can avail this exemption and save tax as well.

Income tax Actually, currently two tax slabs exist in the country. According to those tax slabs, people’s income is taxed. There are different tax slabs for different income groups. On the other hand, in general, income of more than Rs 2.5 lakh per annum starts being taxed. However, exemption can also be obtained on income of Rs 2.5 lakh to Rs 5 lakh annually. There are two tax slabs in the country, which include New Tax Regime and Old Tax Regime. In both the tax systems, there is a provision to pay tax at different rates on different incomes. However, in both the tax slabs, people initially get rebate as well.

Income Tax Slab

If a citizen below 60 years of age files tax according to Old Tax Regime or a citizen of any age files tax according to New Tax Regime, then he has to pay income tax of Rs. 2.5 lakh per annum to 5 lakh. 5% income tax has to be paid on annual income of Rs. However, a person with net taxable income less than or equal to Rs 5 lakh gets tax rebate under Section 87A, that is, such a person will not have to pay any tax in the New Tax Regime or Old Tax Regime up to an income of Rs 5 lakh.

Income Tax Slab Rate

Section 87A is a legal provision that allows tax exemption under the Income Tax Act of 1961. The section, which was inserted through the Finance Act of 2013, provides tax relief for individuals with income below a specified threshold. Section 87A provides that any person who is resident in India and whose income does not exceed Rs.5,00,000 is eligible to claim the rebate. Thus complete tax exemption is available to individuals having total taxable income less than Rs.5 lakh. This exemption is applicable only to individuals and not to companies etc. Also its exemption is calculated before adding health and educational cess of 4%.

Income Tax Return Section 87A was introduced in the Finance Act 2003 which was changed from time to time. At present, an individual taxpayer, who is a resident of India for the purpose of income tax and his annual income does not exceed Rs.5 lakh, can get a rebate of Rs.12,500 in income tax. The amount of tax to be made on an annual income of Rs 5 lakh is also Rs 12500. In such a situation, with the help of this rebate, the entire income tax of the people is waived up to Rs 5 lakh. However, the right to claim exemption under section 87A is completely lost if this limit is exceeded.

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At the very beginning of the pre-budget meetings, the demand for revising it has started rising. The central government is considering increasing the tax-free slab to Rs 5 lakh in the two-year-old alternative personal income tax regime. According to a government official, at present the taxpayer does not have to pay any tax if his annual taxable income is Rs 2.50 lakh. By increasing the scope of tax-free slabs, the tax burden on the taxpayers will be reduced and they will be left with more money to spend or make suitable investments.

He said that very few taxpayers have opted for the alternative tax regime. If taxpayers take advantage of tax exemptions like Section 80C, Section 80D, then the tax liability in the old personal income tax system comes down. But there is no benefit of any kind of deduction in the new system. This step is being taken because very few people have adopted the new tax system.

Tax related agenda will start from next week

According to sources, this issue has been raised during the preparations for the upcoming budget and the concerned departments have been asked to suggest ways to improve the system. The official says that as part of the budget-making exercise, the tax-related agenda will start from next week, where we will look into the possibility of such changes in the taxation system. However, he said that while considering any such proposal, it must be seen that how much this change will affect the total revenue received by the government and whether we have the scope to do so or not.

He said that a preliminary estimate of the impact on revenue due to the increase in the tax-free range under the new system has been done and it can be sent to the budget makers for consideration. He said that it can also be discussed that there is no need to change both the old and new systems of personal income tax.

Understand the new tax slab like this

If we look at the new tax slab, the tax rate has been kept low in it. The new tax slab is different from the old slab in many ways. There are more slabs with lower rates. Apart from this, the benefits of many exemptions and deductions have been reduced as compared to the old tax slab. In this system, as the income increases, the tax slab increases and in this sequence the tax liability also increases.

• Zero tax on earning up to 2.5 lakhs,
• 5% on 2.5-5 lakhs (exemption under 87A),
• 10% on 5-7.5 lakhs,
• 15% on 7.5-10 lakhs,
• 20% on 10-12.5 lakhs,
• 25% on 12.5-15 lakhs,
• 30% tax has to be paid on income above 15 lakhs.

Old tax slab

In the old tax slab, no tax has to be deposited on income up to 5 lakhs. Apart from this, under section 80C, there is exemption from depositing tax on investment of Rs 1.5 lakh. Accordingly, taxpayers do not have to pay tax on income up to about 6.5 lakhs. Income tax rate in old tax regime or old tax slab mainly depends on your income and income slab. Age is also taken into account in this.

• Up to 2.5 Lakh – 0%
• 2.5 lakh to 5 lakh – 5%
• 5 lakh to 10 lakh – 20%
• Above 10 Lakh – 30%

Need for consultation with stakeholders

The new system of alternate personal income tax slabs with a lower rate of tax was introduced as an option in the Union Budget 2020-21. However, estimates suggest that only 10 to 12 per cent taxpayers have opted for it due to higher tax liability as compared to the old system. There is also discussion on reforms in direct taxes including restructuring of capital gains tax. With regard to capital gains, the official indicated that it would be a separate exercise and could be done outside the budget, as it required extensive consultations with all stakeholders.

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Actually, the Ministry of Labor has changed the formula of calculation regarding dearness allowance. An important information related to DA Hike has come out for the employees working for the Central Government. Actually the thing is that the government has created a new calculation formula for the dearness allowance to increase for the next year. Apart from this, some other important changes can be seen by the government.

Labor Ministry has changed the tax formula

In the new year, the dearness allowance will be calculated with the new formula under the 7th pay commission. Apart from this, the central employees will also have to pay tax on the dearness allowance received. Actually, the Ministry of Labor has changed the formula of calculation regarding dearness allowance.

Changes in the base year of DA Hike

The Labor Ministry had changed the base year of dearness allowance in 2016. A new series of Wage Rate Index has been released. According to the Labor Ministry, the new series with base year 2016=100 in the 7th Pay Commission will replace the old series with base year 1963-65.

This is how DA Hike will be calculated

Under the 7th Pay Commission, the amount of Dearness Allowance (DA Hike) is calculated by multiplying the current rate of Dearness Allowance with the Basic Pay. The current rate of percentage is 12%, if your basic pay is Rs.18000 DA (18000 x12)/100. Dearness allowance percentage = Average of CPI of last 12 months-115.76. Now whatever comes will be divided by 115.76. The number that comes will be multiplied by 100.

Tax will have to be paid on dearness allowance

Dearness Allowance is fully taxable under the 7th Pay Commission. Under the income tax rules in India, separate information about dearness allowance has to be given in the income tax return. You will have to pay tax on the amount you get in the name of Dearness Allowance (DA).

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At the very beginning of the pre-budget meetings, the demand for revising it has started rising. The central government is considering increasing the tax-free slab to Rs 5 lakh in the two-year-old alternative personal income tax regime. According to a government official, at present the taxpayer does not have to pay any tax if his annual taxable income is Rs 2.50 lakh. By increasing the scope of tax-free slabs, the tax burden on the taxpayers will be reduced and they will be left with more money to spend or make suitable investments.

He said that very few taxpayers have opted for the alternative tax regime. If taxpayers take advantage of tax exemptions like Section 80C, Section 80D, then the tax liability in the old personal income tax system comes down. But there is no benefit of any kind of deduction in the new system. This step is being taken because very few people have adopted the new tax system.

Tax related agenda will start from next week

According to sources, this issue has been raised during the preparations for the upcoming budget and the concerned departments have been asked to suggest ways to improve the system. The official says that as part of the budget-making exercise, the tax-related agenda will start from next week, where we will look into the possibility of such changes in the taxation system. However, he said that while considering any such proposal, it must be seen that how much this change will affect the total revenue received by the government and whether we have the scope to do so or not.

He said that a preliminary estimate of the impact on revenue due to the increase in the tax-free range under the new system has been done and it can be sent to the budget makers for consideration. He said that it can also be discussed that there is no need to change both the old and new systems of personal income tax.

Understand the new tax slab like this

If we look at the new tax slab, the tax rate has been kept low in it. The new tax slab is different from the old slab in many ways. There are more slabs with lower rates. Apart from this, the benefits of many exemptions and deductions have been reduced as compared to the old tax slab. In this system, as the income increases, the tax slab increases and in this sequence the tax liability also increases.

• Zero tax on earning up to 2.5 lakhs,
• 5% on 2.5-5 lakhs (exemption under 87A),
• 10% on 5-7.5 lakhs,
• 15% on 7.5-10 lakhs,
• 20% on 10-12.5 lakhs,
• 25% on 12.5-15 lakhs,
• 30% tax has to be paid on income above 15 lakhs.

Old tax slab

In the old tax slab, no tax has to be deposited on income up to 5 lakhs. Apart from this, under section 80C, there is exemption from depositing tax on investment of Rs 1.5 lakh. Accordingly, taxpayers do not have to pay tax on income up to about 6.5 lakhs. Income tax rate in old tax regime or old tax slab mainly depends on your income and income slab. Age is also taken into account in this.

• Up to 2.5 Lakh – 0%
• 2.5 lakh to 5 lakh – 5%
• 5 lakh to 10 lakh – 20%
• Above 10 Lakh – 30%

Need for consultation with stakeholders

The new system of alternate personal income tax slabs with a lower rate of tax was introduced as an option in the Union Budget 2020-21. However, estimates suggest that only 10 to 12 per cent taxpayers have opted for it due to higher tax liability as compared to the old system. There is also discussion on reforms in direct taxes including restructuring of capital gains tax. With regard to capital gains, the official indicated that it would be a separate exercise and could be done outside the budget, as it required extensive consultations with all stakeholders.

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If you also pay tax or come in the tax slab, then it is important for you to know what kind of changes the Central Government is going to make in the tax slab this time. The government will present the budget (Budget 2023) on February 1 in 2023. Let us tell you what is the government’s plan regarding tax this time-

Tax limit may increase At present, there is no tax on income up to Rs 2.50 lakh, but in this budget, Finance Minister Nirmala Sitharaman is planning to increase this limit to Rs 5 lakh. That is, after this change, if your income is Rs 5 lakh, then you will not have to pay any kind of tax.

The last major change was in 2014.

Let us tell you that before this, the income tax limit was changed for the last time in the year 2014. At that time this limit was 2 lakhs, which was increased to 2.5 lakhs. This time again it is expected that the government can give great news before the Lok Sabha elections. It is expected that the government is considering increasing the personal tax exemption limit.

Elections will be held after 13 months

Modi government will present the full budget of its second term in 2023. Next year, after about 13 months of the budget, the general elections will be held, so it is believed that this time the government is preparing to give a big relief to the general public.

Finance Minister Sitharaman asked for suggestions

According to the information received from sources, Finance Minister Nirmala Sitharaman had asked for suggestions regarding tax, how much scope is there for improvement in the new tax regime. There is also a discussion about this, so it is believed that the government can make changes in both the new and old tax system. Right now there is no benefit of any kind in the new tax regime.

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