10 ITR Filing Mistakes That Could Leave Taxpayers Paying More This Season

Tax experts urge careful cross checks with official portal sheets to avoid sudden penalty notes and refund delays.

The new tax season is starting across the country now. And first simple filing slips can cost you extra cash. So now smart buyers must check their forms twice. After that wrong details might trigger sudden official notice notes. Plus early filing prevents heavy last minute penalty fees. Meanwhile local advisers urge total care with data rows. So this guide lists ten common errors to avoid.

Matching your records secures a fast payout run. And first double check your main work income sheets. Plus online data tools show your active credits fast. Then note that any text mismatch stops the processing desk. So users must resolve data errors before submitting files. Meanwhile the central board tracks all global assets closely. So clean files help clear your name very fast.

Ten Crucial Mistakes to Avoid When Preparing Your Annual Tax Return

Following a strict safety check prevents huge money loss. And first select your specific tax form very carefully. Next report minor side earnings like asset interest sums. Then match your balance sheets with central data banks. So you can claim valid deduction amounts without issues. Meanwhile track your final web verification deadlines every week. Plus correct bank details ensure quick direct refund drops.

Comparing Tax Systems and Managing Asset Gain Records

Picking the right system changes your final payment depth. And first check both tax paths before choosing one. So now look at your stock gain records closely. After that errors on land sales invite heavy desk check files. Then failing to report offshore funds draws big fines. Plus late filers lose the chance to shift old losses. Target complete data updates to keep your profile clean. So take time to file your forms correctly.

How to Submit Revised Forms if You Spot Quick Errors Later

Fixing an old mistake follows a clear rule path. And first check if your profile allows fresh changes. Next file a revised form to overwrite old slips. Then do not wait for a formal warning note. So the digital portal updates your active logs right away. Meanwhile senior law experts back this fast fix path. Plus quick action saves your hard earned savings safely.

Final Summary for Smart Local Taxpayers This Year

Good filing habits take the stress out of tax month. And first keep your current bank link active online. Next verify your mobile numbers on the state page. Then save a copy of your final sheet receipt. So you can track your refund progress down the road. Meanwhile the main web system is running smoothly today. Plus these safety habits keep your wallet totally safe.

💬 Legal Advisory: High Court Revenue Desk

“Look, the data from the portal is clear as matching your logs with official sheets minimizes mistakes and reduces the likelihood of tax notices,” a senior partner stated online.

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Everyone wants to save some amount of their income and invest it in a place where their money is safe and they get great returns. If you are also planning to invest with this in mind, then Post Office Saving Schemes can prove to be the right option.

The government is running savings schemes for every age group through the post office and one of the special schemes is the National Savings Certificate (NSC). By investing in this scheme, you can get a benefit of Rs 5 lakh in just five years. Let’s know about it in detail…

The scheme is offering a great interest of 7.7%

Post Office’s National Savings Scheme or National Savings Certificate Scheme (NSC Scheme) is one of the most popular small savings schemes due to its returns and benefits. NSC Account can be opened in any post office in the country with a minimum investment of Rs 1,000. It offers an annual interest of 7.7 per cent on investment and under the scheme, this interest rate is offered on the basis of compounding. In this, the interest amount is transferred to the account only after 5 years of investment. The interest rates of NSC and other post office small savings schemes are revised every three months. The special thing is that the government itself guarantees security of investment in these schemes.

Along with strong interest, NSC account holders also

get the tax benefits of Section 80C of the Income Tax Act, which makes this Post Office Scheme even more popular. This is the reason why the number of people investing in it is constantly increasing. By investing in National Savings Certificate, you can save tax on a maximum of Rs 1.5 lakh in a financial year while claiming tax exemption. There is no maximum limit set for investment in this, that is, you can invest as much as you want.

5-year lock-in period

If you want to take full advantage of the interest offered in this government scheme, then you will have to keep your investment till the lock-in period, only then you will be paid the full interest. NSC has a lock-in period of 5 years. In other words, if you open an account in this savings scheme and close it after running it for one year, then you will only be returned the amount invested by you, not a single penny of interest.

In such a situation, it is necessary to operate it for the entire five years. Apart from this, the facility of opening an account in the name of children is also provided in the NSC scheme. As per the rules, the account opened in the name of a child below 10 years of age is operated by his parents. You can go to the nearest post office. Apart from this, the facility of online investment is also provided in it.

Calculation of 5 lakhs in five years

Now let us tell you how you can earn five lakh rupees in just five years. So let us tell you that the interest rate of NSC scheme is 7.7% and if an investor invests Rs 11,00,000 in it at one go for five years. In such a situation, with compounding interest, you will get Rs 15,93,937 on maturity. According to the interest rate, you will get a total interest of Rs 4,93,937 in these five years. At the same time, you can get more benefit by increasing the investment.

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Salaried people have to tell their employer about their tax-saving plans. They also have to tell whether they want to use the new or old income tax regime in the new financial year. This has become very important because the relief for taxpayers in the new income tax regime, which was announced by Finance Minister Nirmala Sitharaman in the Union Budget presented on February 1 this year , has come into effect from April 1.

Major changes in the new regime will come into effect from April 1

The Finance Minister had said that if the annual income is up to Rs 12 lakh, then no tax will have to be paid. This relief was for the new regime of income tax. He also changed the tax slab of the new regime. Now in the new regime, 30 percent tax will have to be paid only by those taxpayers whose annual income is more than Rs 24 lakh. After the announcement made in this year’s budget, the attraction of the new regime of income tax has increased.

Three big benefits of the new regime

The biggest advantage of the new regime is higher standard deduction. However, it must be kept in mind that the benefit of standard deduction is available to employed people. If you are a professional, self-employed or businessman, then you will not get this benefit. The second advantage is that in this regime, no tax has to be paid on income up to Rs 12 lakh. The third advantage is its easy tax structure i.e. slabs. If a person’s basic salary is Rs 12.75 lakh, then he can make tax savings of Rs 1,87,200 in the new regime. We can understand this from the table given below.

There is no benefit of deduction in the new regime

The special thing about the old regime is that it offers the benefit of deduction. Taxpayers can claim deduction under Section 80C and Section 80D of Income Tax. Deduction can be claimed on home loan interest under Section 24B. House Rent Allowance (HRA) can be claimed. If a taxpayer claims a deduction of up to Rs 8 lakh by combining all types of deductions, then only the old regime can be beneficial for him.

Deduction is available in these sections

In the old regime, deduction can be claimed by making tax-saving investments of up to Rs 1.5 lakh annually under Section 80C. Deduction is available on health policies under Section 80D. A person below 60 years of age can buy a health policy for himself and his family and claim a deduction of Rs 25,000 annually on its premium. If the person is 60 years of age or older, he can claim a deduction of Rs 50,000 on the premium. He can also buy a health policy for his elderly parents and claim a deduction of Rs 50,000 annually.

New and old income tax regime

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Cryptocurrency has been classified as a virtual digital asset under section 2(47A) of the Income Tax Act. But till now the central government in India has not recognized it as a legal tender.

This is the reason why the Income Tax Department (ITD) has not yet issued any specific guidelines for tax on crypto coins.

Taxation rules for virtual digital assets in India

However, let us tell you that the taxation of virtual digital assets (VDA) is governed by the major provisions of the Income Tax Act – Section 115BBH and Section 194S. Under this provision, a flat tax of 30% is levied on the profit from selling virtual digital assets (VDA) and a TDS of 1% is levied on the transaction.

30% tax will have to be paid on profits from crypto

That is, if you invest in crypto currency, then you will have to pay tax at the rate of 30% on the profit earned from it. The Indian government is taking strict steps to regulate this sector. By imposing a 30% flat tax on profits from crypto, it is clear that the government is taking a tough stand on everything that is seen as speculative and volatile investment avenues.

Most of the organizations offering crypto-related products operate without 
regulatory approval, making them especially risky for retail investors. 
Therefore, experts believe that investors should exercise special caution
 while investing in them. Investors should invest only that much of their
 income in them which will not affect their financial condition if it gets
 lost.

This shows that the government’s imposition of a 30% flat tax on profits from cryptocurrency in India is not just a financial imposition but a policy tool through which they aim to curb speculative investments in volatile markets.

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Let us tell you that the main objective of the EPF scheme is to financially secure the post-retirement life of workers working in the organized sector through assured retirement fund and pension. However, employees can withdraw money partially or fully from their EPF account even before the scheme matures. However, recently EPFO ​​has changed the withdrawal rule. After this the tax burden has increased. Let us know what is the new rule of EPFO?

New EPF Withdrawal Rules 2024

nder normal circumstances, if you continue to do a regular job without any break or gap, you cannot withdraw provident fund before retirement. However, partial withdrawal of funds is allowed under certain circumstances, such as medical emergencies, higher education and buying or constructing a house. If an employee loses his job, he can withdraw 75% of the EPF after one month of unemployment and the entire 100% after two months. But for this, the employee has to declare unemployment.

Also Read: 5 Best Option: Here customers will get up to 9.60% interest on FD; Know…

When will we have to pay 30% tax on withdrawal

For partial or full tax-free withdrawal of PF funds, it is mandatory that the PF subscriber has completed 5 years of contribution under the EPFO ​​scheme. However, if the withdrawal amount is less than Rs 50,000, no tax is payable. If the EPF withdrawal amount exceeds Rs 50,000 within five years of opening the account, the EPF subscriber will have to pay TDS of 10%, provided he has a PAN card. Without a PAN, this tax liability becomes 30%.

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The post EPFO Rule: EPFO has changed the withdrawal rules, 30% tax may have to be paid, know the new rule first appeared on Rightsofemployees.com.

Apart from this, people are also going to get significant relief regarding tax. Actually, now in some areas of Delhi, people will be given exemption in house or property tax. This has also been announced. In fact, Delhi Mayor Shaili Oberoi on Saturday announced exemption in house or property tax for residential areas under the rural jurisdiction of MCD.

Delhi Municipal Corporation

Oberoi said the Municipal Corporation of Delhi (MCD) will not collect any house tax from ‘Lal Dora’ or extended ‘Lal Dora’ properties in rural areas. He said, “MCD will neither send notices nor collect property tax in the residential areas falling under Lal Dora or Extended Lal Dora in its rural jurisdiction. This is a big relief from Chief Minister Arvind Kejriwal for the people living in rural areas of Delhi.

Tax on properties

However, apart from this, tax will be levied on some properties. Oberoi said that the tax imposed on commercial properties in rural areas will remain the same. Thousands of roads also come under MCD in Delhi. Around 2,168 roads in rural areas of Delhi are notified under MCD and commercial properties located on these roads will have to pay property tax.

Panchayat was held

Earlier, there was also discussion regarding property tax. This decision has been taken after a Panchayat of 360 villages of Delhi was organized on September 3 to discuss the issue of property tax imposed in rural areas. The public is expected to benefit greatly from this.

The post Tax on Property: These people will not have to pay this tax, got exemption first appeared on Rightsofemployees.com.

PhonePe has added a new feature ‘Income Tax Payment’ to make things easier for Indian taxpayers. With the help of this, taxpayers can pay their tax. Actually, the last date to file ITR for the financial year 2022-23 is 31 July. For this, users can use credit card or UPI.

The feature of Indian digital payment company PhonePe will allow both types of taxpayers i.e. individual and business to pay advance tax. Like Paytm, the PhonePe app is very popular in India.

No separate login required

For this, the taxpayer will not need to login separately on the tax portal . The purpose of introducing this feature is to provide seamless experience to taxpayers. PhonePe has given this information. PhonePe has partnered with PayMate for this feature. PayMate is a digital B2B payment and service provider.

Payment by credit card or UPI  

With the help of the features released on Monday on Phone Pe, taxpayers can pay tax with the help of credit card or UPI. Interest free amount will be available for 45 days on payment by credit card. 

ITR file not possible

The new feature of PhonePe only gives the facility to pay tax, it cannot file ITR. Taxpayers have to follow another process for ITR filing. 

How to pay income tax through PhonePe 

• Open the PhonePe app available on Android and iPhone. 
• Click on the option ‘Income tax’ given on the app.
• Select its tax type, assessment year and PAN card details.   
• After this enter the total tax amount, then select the payment mode. 
• Once the payment is made, it will be credited on the tax portal within two working days.  

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In the budget 2023-24, the Modi government at the center has made many changes to make the new tax regime attractive. Since then, the interest of many people has increased in this tax regime. On Friday, Finance Minister Nirmala Sitharaman has once again praised the new tax regime. The Finance Minister said that the new tax regime has given maximum relief and benefits to the middle class people. He said that people of this class are getting tax exemption on an annual income of Rs 7.27 lakh.

Those earning a little more than Rs 7 lakh will also get tax exemption

The Finance Minister has said that the Modi government at the Center is trying to take every section of the country along. In such a situation, keeping in mind the middle class of the country, the government has given income tax exemption to people earning up to Rs 7 lakh. This exemption is available under the new tax regime.

After this decision of the government, many people of the country did not believe in it. There was a question in the mind of some people that if a person’s income is more than Rs 7 lakh, will he have to pay tax? In such a situation, we talked continuously to consider this matter. After this, it was decided that no tax would have to be paid if the income is just a little more than Rs 7 lakh. For example, a person earning Rs 7.27 lakh annually will not have to pay any tax.

Standard deduction available on income of Rs 50,000

Nirmala Sitharaman also said that earlier people were not getting the benefit of standard deduction in the new tax regime, about which many complaints were coming. In such a situation, keeping in mind the needs of the people, we have also made a provision for standard deduction up to Rs.50,000.

The budget for MSMEs has been increased manifold

Praising the steps taken by the government for Micro, Small and Medium Enterprises, the Finance Minister said that its budget has increased 7 times in the last 9 years. In the financial year 2013-14, this budget was Rs 3,185 crore, which has now been increased to Rs 22,138 crore in 2023-24. This shows how committed the government is to promote the small industries of the country. Along with this, he said that under the public procurement policy, the government is making 33 percent of the total purchases from MSMEs.

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GST Council’s 50th meeting: The Central Government can take a big decision on GST today. The 50th meeting of the GST Council (GST Meeting) has started on Tuesday. Taxation on online gaming, definition of utility vehicles besides tightening rules for registration and input tax credit (ITC) claims are likely to come up for discussion. At the beginning of the meeting being held in the national capital, Finance Minister Nirmala Sitharaman released a short film titled ‘GST Council – 50 steps towards the journey’.

Finance Minister tweeted

The Finance Minister’s Office has tweeted that in the 49 meetings held so far, the council has taken around 1,500 decisions in the spirit of cooperative federalism. It has been said in the tweet that the 50th meeting is a milestone, which indicates the success of cooperative federalism and the establishment of a good and simple tax system.

On the occasion of the 50th meeting of the GST Council, Union Finance Minister Smt. @nsitharaman releases a Special Cover and customised myStamp.

The Special Cover and customised myStamp was presented to the Union FM Smt. @nsitharaman by the Chief Post Master General, Delhi… pic.twitter.com/feTDX5AM6h

— Ministry of Finance (@FinMinIndia) July 11, 2023

Who’s who in the meeting

The GST Council, headed by the Union Finance Minister, also includes the Finance Ministers of the States and Union Territories. In this meeting, things can be cleared by the council regarding GST rates on food items sold in multiplexes.

Can get discount on canceled treatment

Apart from this, GST exemption can be announced on the import of ‘Dinutuximab’, a drug used in the treatment of cancer. The modalities for the constitution of the Appellate Tribunal can also be finalized in the meeting.

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Every taxpayer has to pay tax on the income derived from his business or employment. This tax is levied on a percentage of his income limit. But income tax also has provisions for non-taxable income. They are excluded from the ambit of income tax.

Under the Income Tax Act, 1961, income derived from agriculture is excluded from the ambit of income tax. Hindu undivided family income, income from immovable property or income from ancestral property are not taxed.

As per Section 56(ii) of the Income Tax Act, gifts including property, jewellery, money etc. given by a relative are exempt from tax. However, gift received from a person other than a relative is exempted only upto Rs.50 thousand.

The amount of gratuity received after the death or retirement of a government employee is completely tax free. Similarly, private sector employees get exemption on gratuity amount up to Rs 10 lakh received on account of retirement or disability. As per the Income Tax Act, tax relief on gratuity also depends on other factors.

Under Income Tax Act 10(15) certain interest on certain income is exempt from tax. This includes the interest earned on the Suvarna Vaoda Yojana, Local Authority and Infrastructure Bonds and the interest earned under the Sukanya Samriddhi Yojana. No tax is levied on it.

The post Non Taxable income: There is no tax on these five types of income, know the rules first appeared on Rightsofemployees.com.

Giving information, the Finance Minister has said that now no tax will be levied on your income. Many such facilities are being provided by the Central Government, taking advantage of which you will not have to pay any tax on that income. A guideline has been issued by the government regarding this.

Which income will not be taxed

Although income up to Rs 2.5 lakh is tax free, but apart from this, there are many such incomes on which you do not have to pay a single rupee tax. Let us tell you which income is your tax free.

Gratuity is not taxed.

If a employed person leaves his company after 5 years in any organization, then he gets the benefit of gratuity. This amount is completely tax free. If we talk about government employees, then their amount up to 20 lakhs is tax free. At the same time, the amount of up to 10 lakhs of private employees is tax free.

There will be no tax on PPF and EPS, apart from this, there is no tax on PPF money. The interest received on this, the amount received on completion of the maturity period, all three are tax free. Along with this, if the employee withdraws his EPF after working continuously for 5 years, then he does not have to pay tax on this amount also.

There will be no tax on such gifts, apart from this, if you have received any family property, cash or jewelry from your parents, then it is exempt from tax. There is no tax on such gifts. If he wants to earn by investing the amount received from his parents, then he will have to pay tax on the income earned from it.

The post Big relief for income tax payers! The government issued a guideline – Tax will not have to be paid! first appeared on Rightsofemployees.com.

At the same time, income tax return is filed according to different income. However, now you have to keep in mind that even 30 percent income tax of some people is going to be deducted. The last date for income tax return filing to disclose the income earned in the financial year 2022-23 is 31 July 2023.

Income tax return

Actually, there are two systems for filing income tax return in India. One of these is the New Tax Regime and the other is the Old Tax Regime. People get to see different tax slabs and different benefits in both the tax systems. At the same time, a maximum tax of 30 percent is also paid in both these tax slabs. Also, if someone files income tax return after the due date, then penalty can also be imposed on him.

Presenting the New Tax Regime Budget 2023, Finance Minister Nirmala Sitharaman made several important announcements under the New Tax Regime. During this, he had said that in the financial year 2023-24, if a taxpayer chooses to file tax according to the new tax regime, then he may have to pay a maximum of 30 percent tax. Under the new tax regime, if a person’s annual income is more than Rs 15 lakh, then he will have to pay 30 percent income tax.

Old Tax Regime

On the other hand, in the financial year 2023-24, if a person files ITR under the old tax regime, then he may also have to pay a maximum of 30 percent tax. Under the old tax regime, if a person’s income is more than Rs 10 lakh on filing income tax return, then he may have to pay 30% tax.

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At the same time, while presenting the Budget 2023, many important announcements were made by Finance Minister Nirmala Sitharaman, which will affect the people. Along with this, people will also get to see changes in the tax slab.

No tax up to Rs.

With the implementation of the new income tax regime, significant changes took place in the income tax slabs. During this, the basic exemption limit has increased to Rs 3 lakh, while the tax exemption for salaried individuals and taxpayers has increased to Rs 7 lakh from the earlier limit of Rs 5 lakh. In such a situation, if you file income tax return under the new tax regime, you will not have to pay income tax up to Rs 7 lakh.

income tax slab

This time many changes have been made in the income tax slab. Under this, there is no tax on annual income of Rs 3 lakh, 5% on annual income of Rs 3-6 lakh, 10% on annual income of Rs 6-9 lakh, 15% on annual income of Rs 9-12 lakh.

Income Tax

On the other hand, if a person files tax from the new tax regime and his income is from Rs 12 lakh to Rs 15 lakh, then those people will have to file 20 percent income tax return. On the other hand, those whose income is more than Rs 15 lakh, then those people will have to pay 30 percent income tax.

Old tax regime

On the other hand, if a person whose age is less than 60 years and he files income tax return from old tax regime, then he will not have to file any tax on annual income of Rs 2.5 lakh. On the other hand, he will have to file income tax of 5% on an annual income of Rs 2.5 to 5 lakh. After this, 20 percent tax will have to be paid on annual income of Rs 5-10 lakh and 30 percent income tax on income above Rs 10 lakh.

The post Income Tax New Order! Some people will have to pay 20% and some will have to pay 30% tax, check full details first appeared on Rightsofemployees.com.

Form 16 is issued by the company every year by the end of May for the previous financial year. Which runs from 1 April to 31 March. Form 16 is essentially a certificate that the company issues to its employees.

This certificate gives a recognition that TDS has been deducted from your salary and deposited with the government authorities on behalf of the employee. Every company must give salary slip to its employees. Form 16 contains every important detail which is useful in filing income tax return. Through this you can get back the money deducted as TDS. To download Form 16, you can visit the official website of the Income Tax Department at incometaxindia.gov.in/Pages/default.aspx under the Income Tax Form section.

How to file income tax using Form 16?

1. Get all your financial documents including Form 16, PAN card, Aadhaar card, bank statement and other related documents. While filing your taxes, make sure to note all the deductions you are eligible for (like any deduction under 80C, 80D, etc.)
2. Create an account by registering on the Income Tax e-filing portal. Login if you already have an account.
3. Click on “Income Tax Return” available on the e-file section to start the process.
4. Based on your income and other circumstances, select the appropriate Income Tax Return (ITR) form. If you have Form 16, then ITR-1 or ITR-2 can be used.
5. Enter details like personal details, income details, deductions and tax payments.
6. Form 16 contains everything required for filing your income tax return, including allowances exempt under section 10, deductions under section 16 apportionment, taxable salary reported by an employee and offered for TDS Income (or allowable loss) from house property, income under the head ‘Other sources’ proposed for TDS, includes deductions under section 80C.
7. Verify all the information you provided, then submit the form.
8. Once you submit your return, e-verify it through one of the accessible methods, such as an OTP from your Aadhaar, etc. The online method of filing ITR is simple and takes only a few minutes.

The post ITR File using Form-16: How to file Income Tax Return using Form-16, this is the step-by-step method first appeared on Rightsofemployees.com.

GST Rate: Economic think-tank GTRI said that the GST Council should consider increasing the tax exemption limit to Rs 1.5 crore per annum, as well as removing the need for state-wise registration. The Global Trade Research Initiative (GTRI) said in a statement that the GST Council, which is the policy making body for GST, should now focus on the need to maximize benefits by simplifying tax compliance. For this, he has also suggested seven reforms.

GST

Among these suggestions, the proposal to give GST exemption to firms with an annual turnover of up to Rs 1.5 crore is the most important. GTRI said that doing this will prove to be a game-changer for the country’s micro, small and medium units and they will be able to give new employment and accelerate growth. At present, only product firms with an annual turnover of less than Rs 40 lakh are exempted from GST registration. On the other hand, in case of service firms, this scope is limited to Rs 20 lakh turnover.

GST rate

GTRI said, “Of the total registered firms, the number of firms with an annual turnover of less than Rs 1.5 crore is about 84 percent. But their share in the total tax collected is less than seven percent. If the tax exemption limit is increased to Rs 1.5 crore, If it goes, the burden on the GST system will come down and they will have to deal with less than 23 lakh taxpayers.”

GST Network

There are more than 1.4 crore firms registered on the GST network. Thus it is the largest global forum on indirect taxes. GTRI said that by reducing the burden on the GST network, the concept of matching bills and receipts will be implemented and the problem of fake bills and tax evasion will also go away to a great extent. The gains from this would far outweigh the seven per cent tax loss incurred by excluding firms with a turnover of up to Rs 1.5 crore.

GST number

Along with this, the think tank has requested the GST Council to look into eliminating the need for state-wise registration. At present, if a company does business in ten states, then it will have to take GST number everywhere. This makes it difficult for them to take input tax credit.

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New Delhi. If you are an income tax payer and apart from job or business, you also earn from Virtual Digital Assets and share market, then you will have to give this information to the Income Tax Department. Due to the provisions included in the Finance Act last year, some changes have been made.

Therefore, from April 1, 2022, tax will be levied on the profit made on transactions in virtual digital assets. The Central Board of Direct Taxes had notified income tax return forms for assessment year 2023-24 earlier this month.

These forms are to be used for filing return for income earned during the financial year 23, which ends on 31st March. “For the convenience of taxpayers and ease of filing, no significant changes have been made in these forms as compared to last year’s ITR forms,” the CBDT said in a statement. Due to amendments in the Income Tax Act, 1961 only the minimum changes required have been made.”

VDA schedule given in ITR

Now information about the tax levied on digital assets will have to be given in the ITR forms. From July 1, 1 percent TDS will be deducted on transactions of more than Rs 10,000 in assets like cryptocurrency and non-fungible tokens. Tax expert Vivek Jalan told Money Control that now ITR2/ITR

3/ITR5/ITR6 separate VDA schedule is given. In this, the earnings from virtual digital assets have to be told. Under the new schedule, information related to VDA transactions will have to be filled.

At the same time, those trading in the equity market i.e. stock market may need to provide additional information. Jalan said, “Now, when share trading business is carried out, the entire business should also be divided into intra-day trading and delivery-based trading and reported accordingly in ITR3/ITR5/ITR6.”

Explain that it was announced in Budget 2022 that the sale / transfer of virtual digital assets

The income from this will come under the tax net of 30 per cent. Also, during the transfer of virtual digital assets, 1 percent TDS will be applicable on transactions exceeding a limit.

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Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

This is not an actual tax, which is levied by the government. Rather than men, women have to pay this extra money. Companies are deducting your tax through this pink tax. Although most people do not know about this, but it is emptying your pocket in another way. The biggest impact of this is directly on women. Let us finally know what is Pink Tax.

Why women have to pay this pink tax

Pink tax is not an ordinary tax. This is a form of gender-based price discrimination that women pay for their goods and services. On average, women are charged 7% more money on products. On the other hand, if we look at personal care, then this difference comes to 13%.

What is Pink Tax?

Pink tax is levied on the basis of gender. Especially when a product is designed for women. Along with this, the company also charges more than women for perfumes, pens, bags and clothes. Women in India have to pay more than the cost of the products.

As an example, in many places, such as salons, women are charged more than men. On the other hand, women’s personal care such as body wash, soap, cream are expensive as compared to men. On the other hand, women have to spend more money than men to get their hair cut.

What is the reason?

The reason behind this is believed that women are very price sensitive. If they like the products and the amount they cost, women buy it for the same instead of reducing it. This is the reason why companies charge more money from women. This has now become a marketing strategy of companies.

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If your salary package is 10 lakh rupees and you pay a large part of your earnings in the form of tax, then be careful. Perhaps you would think that there is no way to save tax, in such a situation, if it is right to pay tax, then you are wrong. Not only this, even if your salary package is 10.5 lakh rupees, even then you will not have to pay 1 rupee as tax. Let’s know the complete maths…

On a salary of 10.5 lakhs, you fall in the slab of 30 percent tax. Because 30 percent income tax is liable on annual income above 10 lakhs.

This is the complete maths
1. If your salary is 10.5 lakh rupees, then first of all subtract 50 thousand given by the government as standard deduction. In this way your taxable income is now Rs 10 lakh.

2. Now you can claim Rs 1.5 lakh under 80C. In this, you can claim children’s tuition fee, PPF, LIC, EPF, Mutual Fund (ELSS), principal of home loan etc. In this way, your taxable income here has been reduced to Rs 8.5 lakh.

3. You have to invest 50 thousand under National Pension System (NPS) under 80CCD(1B) to make tax zero (0) on salary of 10.5 lakhs. In this way your taxable salary has come down to Rs 8 lakh.

4. Now under Section 24B of Income Tax, you can claim tax exemption on home loan interest of Rs 2 lakh. In this way, now your taxable income has come down to Rs 6 lakh.

5. Under Section 80D of Income Tax, you can claim a premium of 25 thousand rupees medical health insurance for your family (wife and children). Apart from this, senior citizens can claim 50 thousand for health insurance premium paid for parents. After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25 lakhs.

6. Now you have to donate 25 thousand rupees to any organization or trust to bring your taxable income to 5 lakhs. You can claim it under Section 80G of Income Tax. On donating 25 thousand, your taxable income came down to Rs 5 lakh.

You will have to pay zero tax
, now your taxable income has been reduced to Rs 5 lakh. On the income of 2.5 to 5 lakh rupees, at the rate of 5 percent, your tax becomes Rs 12,500. But there is an exemption from the government on this. In this case your tax liability becomes zero.

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EPF, VPF and PPF: The Basics

The post EPF v/s PPF v/s VPF: Which One is Better? first appeared on Rightsofemployees.com.

So what’s the best way to draft salary structures?  To answer this, we’ve put together a table of the common components that make up a salary.  We’ve also added recommended amounts to each component that should assist you in drafting an ideal salary structure.

*Note 1: The PF Employer Contribution also bears additional administrative charges
*Note 2: Feel free to use components like Child Hostel and Child Education; since they are small, we have ignored in our structure

For higher income employees:

• You can use Mobile, Driver Salary, Books and Periodicals and Car Maintenance
• You can set these amounts based on what you think the expenses of that employee would be, keeping in mind the exemption limits for Driver’s Salary and Car Maintenance.

Structuring Salaries is an inevitable task for every HR and Payroll professional. Despite the importance of the activity, professionals are often uninformed of the technical and best practices of a drafting a complete and efficient salary structure.

1) Basic Salary + Dearness allowance

The Basic component is the primary component and the core of the salary structure.  It is usually the largest component of the CTC making up for 40-45% of the total CTC.   The basic plays an important role in defining the salary as other components like Provident Fund, Gratuity and ESIC are dependent on it.

Dearness Allowance (DA) was introduced as part of the salary as a means to reduce the burden of inflation on salaried employees.  This amount is usually set to about 5% of the total CTC and like the Basic component it also has an effect on PF, ESIC etc.

You should keep the following in mind while setting the amounts for Basic and DA:

1. If it’s too high, it will increase the tax liability of the employee since this component is fully taxable. It also affects the liability of the employer since higher contributions would be required for PF, ESIC etc.
2. If it’s too low, then you may not be able to meet the minimum wage norms set by the respective state government. Since minimum wages are updated regularly, you would run the risk of falling below the recommended wage limit.

2) House Rent Allowance (HRA)

The House Rent Allowance, as the name suggests is a component that employees can leverage if they are living in rented accommodations.  The amount that you can claim as tax deduction under HRA cannot be more than 50% of your basic in a metro or 40% of your basic in a non-metro.  Hence, depending on where your workplace is located, this salary component will usually be set at 40% or 50% of the basic salary.

1. When Should Employee declare the amount to get Tax benefit
   At the beginning of new financial year along with your other tax saving plans (like LIC,PPF, Loan , etc), before 25th April’ 2018 employees need to declare their details with their employer for FY 2018-2019.
2. When should Employee submit actual proof to HR     
   
   Usually by the end of the financial year employees need to submit their tax saving documents with their concern HR. Resigned Employee : At the time of Exit employee should ensure to provide their actual tax saving proofs to concern HR before the FnF settlement gets finalised or else excess tax will be recovered from the settlement amount.

3) Leave travel allowance (LTA)

Leave travel allowance (LTA) remunerates employees for their travel within the country.  This component is widely used by employers due to the tax benefits associated with it.  An employee can claim tax benefits for the fare expenses paid for his/her family when they take a holiday.  However, there are restrictions to what you can claim as tax benefits:

1. Only fare expenses are covered: Only the travel fare expenses can be claimed. Stay and food on your trip aren’t covered.
2. Travel must be within India: If you travel to a foreign country, the expenses aren’t tax deductible.  Only travel within the country is covered.
3. What counts as family: Immediate family that are mainly dependant on the employee are covered under LTA.
4. When Should Employee declare the amount to get Tax benefit
   At the beginning of new financial year along with your other tax saving plans (like LIC,PPF, Loan , etc), before 25th April’ 2018 employees need to declare their details under ‘Tax Declaration’ tab enter the Tax Saving Plans for FY 2018-2019.
5. When should Employee submit actual proof to HR 

Usually by the end of the financial year employees need to submit their tax saving documents with their concern HR.Resigned Employee : At the time of Exit employee should ensure to provide their actual tax saving proofs to concern HR before the FnF settlement gets finalised or else excess tax will be recovered from the settlement amount.

4) Conveyance Allowance

Note: With the introduction of standard deduction, exemption on Conveyance allowance has been removed effective April 2018 onwards. Employees don’t need to collect or submit any Conveyance proof.

5) Medical Allowance

Note: With the introduction of standard deduction, exemption on Medical allowance has been removed effective April 2018 onwards. Employees don’t need to collect or submit any Medical proof.

6) Child Education Allowance

This component is paid out towards tuition fees of employees’ children and is tax deductible up to Rs. 100 every month for a maximum of two children. Hence, this amount is usually set to not more than Rs. 2,400 a year for an employee.

1. When Should Employee declare the amount to get Tax benefit
   Provide the count of children to your concern HR, for availing tax benefit on Education Allowance.
2. When should Employee submit actual proof to HR
   Usually by 15th January’ 2019 employees need to submit their tax saving documents with their concern HR.

Resigned Employee : At the time of Exit employee should ensure to provide their actual tax saving proofs to concern HR before the FnF settlement gets finalised or else excess tax will be recovered from the settlement amount.

7) Special Allowance

Special allowance is the balancing component of the salary structure.  It is usually used by organisation as the leftover of the CTC when the rest of the components have been paid out.  This component is fully taxable and is also taken into account for the calculation of Provident Fund.

Deductions:

Deductions are elements of the salary that are part of the CTC but are deducted from the in-hand salary that employees receive. Let’s take a deeper look at some of the most common salary deductions and what they mean.

1) Provident Fund

Provident Fund (PF) is calculated at 12% of Basic + DA + Special Allowance.  The employer and the employee both make an equal contribution of 12% each.  This is applicable to companies who have 20 or more employees on their payroll.   If an employee’s Basic + DA + Special Allowance are less than Rs. 15,000 then it is mandatory for Provident Fund to be deducted.  Other employees can opt out by filling form 11 or can choose to have PF deducted on the ceiling of Rs. 15,000 which would be Rs. 1,800 monthly.

2) Employees State Insurance Corporation (ESIC)

Deductions towards ESIC are mandatory for employees whose gross salary is not more than Rs. 21,000.  It is only applicable in companies where there are 20 or more employees within the Rs.21,000 gross salary bracket.  Employees have to make a contribution of 1.75% of the gross salary and employers have to make a contribution of 4.75% of the gross salary.

3) Professional Tax

Professional tax is the tax levied by Governments of certain states on salaried employees. The states where professional tax is applicable are Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.

The amount of profession Tax that is deducted varies from state to state where they are applicable.

4) Labour Welfare Fund

Labour Welfare Fund, as the name suggests, is a contribution made by salaried employees for the benefit of the labour class.  This contribution is applicable in the states of Karnataka, West Bengal, Maharashtra, Andhra Pradesh, Kerala, Goa, Delhi, Punjab, and Haryana & Madhya Pradesh.

The contribution amount varies from state to state and is relatively small. The employer and the employee both make contributions and the employer pays approximately twice the employee contribution. The payments are made semi-annually in the months of June and December.

Like Professional Tax, Labour Welfare Fund contributions also vary from state to state where they are applicable.

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Filing your income tax return is not as difficult as it may sound. Here is a step by step guide to e-file your income tax return. It is simple, easy and quick

Before we get started, you should have the following documents at hand to pace up the process:


List of Required Documents for e-filing of tax returns

It is always good to stay a step ahead, especially when it comes to tax filing. The checklist provided below will help you to get started with the e-filing of tax returns.

General details:

• Bank account details
• PAN Number

Reporting salary income:

• Rent receipts for claiming HRA
• Form 16
• Pay slips

Reporting House Property income:

• Address of the house property
• Details of the co-owners including their share in the mentioned property and PAN details
• Certificate for home loan interest
• Date when the construction was completed, in case under construction property was purchased
• Name of the tenant and the rental income, in case the property is rented

Reporting capital gains:

• Stock trading statement is required along with purchase details if there are capital gains from selling the shares
• In case a house or property is sold, you must sought sale price, purchase price, details of registration and capital gain details
• Details of mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs

Reporting other income:

• The income from interest is reported. In case of interest accumulated in savings account, bank account statements are required
• Interest income from tax saving bonds and corporate bonds must be reported
• The income details earned from post office deposit must be reported

STEP 1. Register yourself

To e-file your income tax return, you will have you register on the Income Tax Department’s online tax filing site (incometaxindiaefiling.gov.in). You have to provide your permanent account number (PAN), name and date of birth and choose a password. Your PAN will be your user ID.

STEP 2. Choose how you want to e-file
There are two ways of e-filing your income tax return. One is to go to the download section and select the requisite form, save it on your desktop and fill all the details offline and then upload it back on the site. Or you can choose to fill the form online by selecting the quick e-file option.

STEP 3. Select the requisite form

ITR-1: For individuals earning a salary, pension, or income from property or sources other than lottery.
ITR-2: For those earning capital gains. ITR 2A for those owning more than one house but no capital gains.
ITR 3, 4 and 4S: Professionals and business owners.

STEP 4. Keep the documents ready

Keep your PAN, Form 16, interest statements, TDS certificates, details of investments, insurance and home loans handy. Download Form 26AS, which summarises tax paid against your PAN. You can then validate your tax return with Form 26AS to check your tax liability.

If you earn more than Rs 50 lakh, from this year you will have to fill an additional column —”AL” or assets and liabilities. You will have to disclose the value of your assets and liabilities. Assets have to be declared at cost.

STEP 5. Fill form and upload

If you choose to fill the form offline, after you have downloaded the form and filled all the details, click on ‘generate XML’. Then go to the website again and click on the ‘upload XML’ button. You will have to first log in to upload the XML file saved on desktop and click on submit.

STEP 6. Verify ITR V

On submitting your ITR form, an acknowledgement number is generated. In case the return is submitted using digital signature, you just have to preserve this number. If the return is submitted without a digital signature, an ITR-V is generated and is sent to your registered email ID.

The tax filing process is incomplete and ITR is invalid unless your ITR V is verified. You can electronically verify or mail the signed ITR V to the processing centr ..

The post How to file Income Tax Returns ( ITR )? first appeared on Rightsofemployees.com.

Clause (2) of Article 276. It is a state-level tax. It is also a source of revenue for the State Governments which helps the different state in implementing schemes for the welfare and development of the region.

• Tax can be paid Monthly, Semi-Annually or Annually.
• It also consists of Rate-slabs (mentioned below) which are based on the total income of the professionals.

Eligibility

Tax is imposed on:

• Salaried individuals,
• working in government or non-government entities,
• Chartered Accountants,
• Doctors,
• Lawyers etc or carry out some form of business.

Exemptions

• Any person who is suffering from a permanent physical disability (including blindness).
• Parents or guardian of any person who is suffering from mental retardation.
• Persons of age 65 years and above (60 years in a case of Karnataka).

Employer’s Responsibility

In the case of salaried professionals and wage earners, the tax is deducted from the employee salaries. Employers have to pay tax on behalf of their workmen/employees to the State Government. Owner also has to file a return with proof of tax payment within the specified time.

Registration

The employer must apply for the registration within 30 days of the appointment of staff in the business. If the office is in more than 2 states, then different applications need to be sent to the relevant authorities under different states.

Documents Required

1. A copy of PAN Card of your company.
2. Registration Certificate.
3. A copy of Memorandum Of Association (MOA) and Article Of Association (AOA).
4. List of Directors/Partners.
5. Identity and Address Proof of Directors/Partners.
6. A copy of Resolution of Board of Directors.
7. List of employees.
8. Address proof/Rental agreement of registered office/ warehouse.
9. Electricity/Maintenance Bill of registered office/factory/warehouse.
10. Canceled cheque from Company’s bank account.

• All these documents, registration application, and fees submitted to the State’s Tax department.
• After verification, officer issues a registration certificate and your Professional Tax Registration is successful.

Deposition of tax amount

• Case 1: If an employer has more than 20 employees, then make payment within 15 days from the end of the month.
• Case 2: if an employer has less than 20 employees, then make payment quarterly (i.e. by the 15th of next monthfrom the end of the quarter).

Penalty

• Case 1: Professional Tax Certification Number is not with the employer then the employer will incur a penalty of Rs.5/- per day.
• Case 2: No/late payment, the employer will incur the penalty of 10% of the tax amount.
• Case 3: Late filing of returns, a penalty of Rs. 300/- per return is chargeable.

States that impose professional tax

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra , West Bengal, Orissa, Tamil Nadu are states which impose professional tax.

States that do not impose professional tax

States: Arunachal Pradesh, Chandigarh, Delhi, Haryana, Himachal Pradesh, Nagaland, Punjab, Rajasthan, Uttaranchal, Uttar Pradesh.

Union Territories: Andaman & Nicobar, Dadra & Nagar Havelli, Daman & Dui, Lakshadweep.

 Sikkim: Professional Tax levied on Business Houses.

Conclusion

Professional tax is a tax levied by the State Government. All states do not impose this tax, only some of them collects tax.This tax is a source of revenue for the states who imposes it.

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