Frauds are caught with AI

The Income Tax Department is using Artificial Intelligence i.e. AI. The Income Tax Department is catching fake rent receipts with the help of AI. For this, it matches Form-16 with AIS Form and Form-26AS.

The difference comes to the fore

All the transactions related to PAN card are recorded in AIS form and Form-26AS. In such a situation, when a taxpayer claims house rent allowance through rent receipt, the Income Tax Department matches his claim with these forms. If there is any increase or decrease, the difference is immediately visible. This entire process is done automatically and in a jiffy by AI.

When is it necessary to provide the landlord’s PAN?

There is a rule related to House Rent Allowance i.e. HRA that an employee can claim deduction of HRA only if he is getting HRA from the company. At the same time, if the employee pays rent of more than Rs 1 lakh, then he will also have to provide the PAN number of his landlord.

Matching claim amount with PAN

The Income Tax Department matches the amount you claim under HRA with the amount sent to your landlord’s PAN number. If a difference is found between the two, a notice is sent by the Income Tax Department.

Up to what amount of rent is there no inspection?

If your company gives HRA and you are claiming annual rent of less than Rs 1 lakh, then you do not have to provide the PAN of your landlord. In this case, you can claim HRA up to Rs 1 lakh, which will not even be checked by the Income Tax Department whether it is correct or fake.

Why fraud in HRA?

The biggest reason for fraud related to HRA is that it saves tax on a lot of income. However, from next year, in the new tax system, income up to Rs 12 lakh will be tax free with rebate, so perhaps the scope of HRA will also decrease and due to that, fraud can also be reduced.

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A lot of NRIs from India live in different countries of the world, these people are settled in different countries of the world who have settled in far-off countries to earn money, but they still have Indian citizenship. It is often seen that NRIs earn money by living abroad and invest in property and other places in India with the help of their family and relatives.

These NRIs also have to pay income tax like other citizens of India, but this income tax has to be paid only on the income that they have earned inside India such as the income they have earned through bank deposits, rent or property purchase and sale. Here we are going to tell these NRIs the way to save income tax.

Getting a Tax Residency Certificate

If a person is an NRI and he is earning profit by investing in two countries and there is a double tax agreement between the two countries, then he can get a TRC (Tax Residency Certificate) made and pay tax in only one country. This saves him from paying double tax and he also saves money.

Benefits of filling Form 10F

Form 10F is a statement that verifies the eligibility of an individual or entity to receive tax benefits following the Double Taxation Avoidance Agreement (DTAA). This form is mandatory to be submitted before making any payment to an NRI, and its validity is limited to the financial year in which it is submitted. Form 10F comprises two sections. The initial section contains the statement made by the NRI, while the subsequent section contains the certification by the tax authority in the resident country.

Simplifying the e-verification process

Today, income tax can be filed online, but e-verification requires Indian mobile numbers or bank accounts. At the same time, NRIs are demanding to include foreign mobile numbers or email-based verification. There is also a demand to extend the 30-day time limit for physical verification, so that those facing logistical delays can get convenience.

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Save more tax by taking a joint home loan (Tax Saving)

If your wife also earns, then taking a joint home loan is always beneficial. This way, both of you will be able to save tax on your earnings. Because on taking a joint home loan, you can claim separate tax deductions of up to Rs 1.5 lakh on the principal repayment under Section 80C and up to Rs 2 lakh under Section 24(b). Thus, by taking a joint loan, both of you can get a total tax deduction of up to Rs 7 lakh. But remember that unless the property is in joint name, you will not be able to avail this tax benefit.

How can a wife double your income?

To double your income, open separate PPF accounts in the name of both you and your wife and invest in them. You can claim tax benefits on investments up to Rs 1.5 lakh in both the accounts. In this way, you can claim tax benefits on total investments up to Rs 3 lakh. So, your income has doubled, right? (Double your income).

NPS Account in Wife’s Name

Open an NPS (National Pension System) account in your wife’s name as well. By investing in both the accounts, you can claim additional tax benefits of up to Rs 50,000 under Section 80CCD(1B).

Health Insurance Policy in the Name of Wife or Family

You can claim tax deduction under Section 80D on the premium paid for a health insurance policy for your wife and family. Under Section 80D, tax deduction can be claimed on health insurance premium for spouse and family members. But to avail this tax benefit, both husband and wife will have to buy separate health insurance policies.

Benefit of interest deduction on wife’s savings account

Open a separate savings account in the name of your wife. Under section 80TTA, tax benefit is available on interest income up to Rs 10,000 on both the accounts.

In these ways you can save a lot of tax and more tax saving means more income. You can use this money to strengthen your financial portfolio, which can meet many of your needs in the future.

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The post 5 Smart Ways to Save Income Tax, Income can also Double first appeared on Rightsofemployees.com.

In India, citizens are given income tax exemption under the sections of the Income Tax Act 1961. All taxpayers are required to file ITR return once a year. If your income comes under the ambit of income tax, then you must pay tax. The government gives an opportunity to taxpayers who file ITR to save Rs 1.5 lakh annually in tax.

However, not all taxpayers are aware of how to save tax. Today we are going to tell you 6 such ways, with the help of which you can save tax up to Rs 7 lakh. You will have to pay zero tax on earnings up to Rs 12 lakh. Let us tell you that in the old tax regime, the government has already made income up to Rs 5 lakh tax free.

Know those 6 ways –

1. If your salary is Rs 12 lakh, then you can make it in such a way that your HRA will be Rs 3.60 lakh, your LTA will be Rs 10,000, and the expense of phone bills will be Rs 6,000. You will get a standard deduction of Rs 50,000 on salary under Section 16. You can claim exemption on profession tax of Rs 2500.

2. HRA of Rs 3.60 lakh can also be claimed under Section 10 (13A) and LTA of Rs 10,000 under Section 10 (5). With these deductions, your taxable salary will reduce to Rs 7,71,500.

3. If you have invested in LIC, PPF, EPF, or if you have paid your child’s tuition fees, you can claim an additional deduction of Rs 1.50 lakh under Section 80C.

4. Those who have invested in the Tier-1 scheme of the National Pension Scheme are eligible for an additional deduction of Rs 50,000 under section 80CCD. After both these deductions, your taxable income will be Rs 5,71,500.

5. Section 80D allows you to claim tax exemption for premiums paid on health insurance policies. While you can claim Rs 25,000 for health insurance premium for yourself and your spouse or your children.

6. You can claim an additional rebate of Rs 50,000 for the premium paid on the health policies of your senior citizen parents. With this you will get the benefit of deduction of Rs 75,000, due to which your income will reduce to Rs 4,96,500.

These schemes can also give tax exemption
under the income tax rules: Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Saving Scheme (ELSS), National Pension System (NPS), Sukanya Samriddhi Yojana (SSY). Tax deduction is available on Senior Citizen Savings Scheme (SCSS) and Fixed Deposit (FDs) schemes with tenure of 5 or more.

According to tax experts, by investing your savings in these schemes, you can claim tax exemption as per the applicable conditions. Also, with this you can arrange more funds for yourself in the long run. Let us tell you that the last date of ITR file is 31 July 2024.

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At this time, everyone’s eyes are on any news related to the budget or the demand made by different sectors to the Finance Minister. From job professionals to farmers, everyone’s eyes are on the budget. Due to the last full budget of the government before the Lok Sabha elections, the general public has a lot of expectations from it.

Less tax for low income earners In this budget, along with increasing the income tax exemption limit, the standard deduction limit is also expected to be increased. At present, there are two regimes of income tax exemption. First new tax regime and second old tax regime. Finance Minister Nirmala Sitharaman recently said during a program that the optional income tax system with seven tax slabs was brought in so that low income earners have to pay minimum tax.

No exemption in the new tax regime

Sitharaman told that in the old tax regime, you can claim income tax exemption in different ways. In this, tax payers can claim exemption in 7-10 ways. In this, tax has to be paid at the rate of 10, 20 and 30 percent. Along with the old tax regime, the government has brought a new tax regime, there is no exemption from tax in this. But the tax rate is less in this.

4 slabs in Old Tax Regime The Finance Minister said that there are 7 tax slabs in the New Old Regime, while there are 4 slabs in the Old Tax Regime. Old tax regime is better for low income group people. In this, you can save tax in 7 ways including house rent allowance, home loan interest, 80C and medical insurance. The Finance Minister also said that he had to make seven slabs so that there would be lower rates for the low income group people. Let us know the rates of old tax regime-

Old Tax Regime-

Rs 0 – Rs 2,50,000 – Zero Tax Rs
2.5 Lakh to Rs 5 Lakh – 5 Percent Tax Rs 5 Lakh
to Rs 10 Lakh – 20 Percent Tax
Rs 10 Lakh to Rs 15 Lakh or above – 30 Percent Tax

The post Good news for Taxpayers! Best way to save income tax for tax payers, Finance Minister gave this big information first appeared on Rightsofemployees.com.