Since the implementation of the Goods and Services Tax (GST), filing annual returns has always been a major challenge for small businesses and professionals. Not only is this process time-consuming, but it also requires the assistance of accountants and tax consultants, which adds additional expense. In this situation, the government has provided significant relief to small businesses. In a notification issued on September 17, 2025, the government has completely exempted certain categories of taxpayers from filing GST annual returns.

The government has clarified that GST-registered businesses and professionals with an annual turnover of up to ₹2 crore will no longer be required to file annual returns from the financial year 2024-25. This relief will be applicable with GST returns due on December 31, 2025.

What do experts say?

Tax expert Parag Mehta says that until now, those with a turnover of up to ₹5 crore were required to file annual returns. However, the government has periodically granted exemptions to those with a turnover of up to ₹2 crore. He believes this step will save smaller taxpayers from cumbersome compliance and extra expenses. However, one drawback is that filing annual returns gave taxpayers the opportunity to correct previous year’s mistakes and rectify defaults, which may now be lost.

New Changes in GST Forms

RSM India Associate Director – GST Bhogavali Mallikarjun Gupta explains that a new Table 6A1 has recently been added to GSTR-9. This change is an important step towards making ITC (Input Tax Credit) claims more clear and transparent for taxpayers. Previously, notices would be issued due to incomplete or incorrect information, but this new system will make reconciliation easier for both taxpayers and officials. Gupta says that the tax department will now reconcile ITC-related information with prior year data, which will increase both transparency and accountability. This will also reduce unnecessary notices and litigation costs.

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If you are a salaried class and you pay tax then there is good news for you. Let us tell you that recently the Parliament has passed the Income Tax (No. 2) Bill, 2025, which will come into force from April 1, 2026 and will replace the old Income Tax Act of 1961. In the new system, tax slabs have been simplified, rebates have been increased and the rules have been made cleaner than before. Under the rule, there is no tax on the first ₹ 4 lakh income and there will be a big rebate on income up to ₹ 12 lakh. The government says that this will reduce the hassle of tax filing and more money will be saved in the pockets of the people. Let’s know in detail…

What is the provision

The major provisions of the New Income Tax Bill 2025 provide great relief to the salaried class and middle class taxpayers. In the new tax system, there will be no tax on income up to ₹ 4 lakh. At the same time, 5% tax rate will be applicable on ₹ 4–8 lakh, 10% on ₹ 8–12 lakh and 15% on ₹ 12–16 lakh. Also, under Section 87A, those earning up to ₹ 12 lakh will get full tax rebate of up to ₹ 60,000, due to which no tax will have to be paid on salary income up to ₹ 12.75 lakh by adding the standard deduction of ₹ 75,000. Simplifying the complex provisions of the old law, the number of sections has been reduced from 819 to 536 and the new concept of ‘tax year’ has been implemented. Apart from this, provision has also been made for faceless digital assessment, action with advance notice, and early payment of TDS refund. This new law will come into effect from April 1, 2026 and will be applicable from the financial year 2025–26.

Tax exemption

In the new tax regime, under section 87A, those earning up to ₹ 12 lakh will now get a full tax rebate of up to ₹ 60,000. This means that by adding the standard deduction of ₹ 75,000, no tax will have to be paid on salary income up to ₹ 12.75 lakh. Earlier in the new tax regime, this rebate was available only on income up to ₹ 7 lakh, which has now been increased significantly. At the same time, in the old tax system, the current limit of section 87A will continue to be ₹ 5 lakh and the rebate will be ₹ 12,500 as before. Please note that this rebate will not be applicable on special income like short term capital gain (STCG).

Simplification of tax slabs

Under the new tax regime, the proposed tax slabs will be 5% on income from ₹4,00,001 to ₹8 lakh, 10% on income from ₹8,00,001 to ₹12 lakh and 15% on income from ₹12,00,001 to ₹16 lakh. Income from ₹16,00,001 to ₹20 lakh will be taxed at 20%, while income up to ₹24 lakh will be taxed at 25%. Income above ₹24 lakh will be taxed at up to 30%. The aim of these slabs is to simplify tax calculations and reduce the impact of higher marginal rates.

Property Tax

Section 20 clarifies the taxation of property tax, where income from owned buildings or land is taxable under the head ‘Income from house property’. The annual value will now be the higher of the estimated or actual rent received. However, properties used for business purposes are taxed under the head business income. This amendment seeks to provide clarity and fairness in property taxation.

UPS Alignment

The bill also aligns the Integrated Pension Scheme (UPS) with the National Pension System (NPS) for taxation. Up to 60% of the pension amount on retirement is tax-free. In addition, employee and employer contributions will continue to be eligible for tax deductions under sections 80CCD(1) and 80CCD(2). The aim is to remove the disparities in tax treatment between UPS and NPS and encourage more retirement planning.

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There is also less chance of mistakes in filing income tax returns. But, tax experts say that salaried taxpayers whose income is up to Rs 12 lakh may have to pay more tax. The reason for this is that the new regime does not provide the benefit of deductions.

If there is capital gain, you may have to pay more tax

Taxspanner CEO Sudhir Kaushik said that filing Income Tax Return is easy in the new regime. Taxpayers do not have to provide proof of investment. But the problem is regarding capital gains. In the new income tax regime, if the total income is up to Rs 12 lakh, then rebate is available under section 87A, which makes the tax zero. But, capital gains have been excluded from this benefit.

Deductions and exemptions are not allowed in the new regime

This can be understood with the help of an example. Suppose a person has an annual income of Rs 9 lakh from salary and short term capital gains of Rs 70,000. According to the rules applicable from July 23, 2024, 20 percent tax is applicable on short term capital gains. This will result in a tax of Rs 14,000 on short term capital gains of Rs 70,000. On the other hand, in the old regime of income tax, deduction is available on section 80C, 80D and exemption on HRA, LTA and NPS. This reduces the tax liability of the taxpayer on the same income.

Deductions and exemptions reduce tax liability

If a taxpayer takes full advantage of deductions and exemptions, his tax is reduced significantly in the old regime. Under Section 80C, deduction can be claimed on PPF, ELSS, life insurance policy, children’s tuition fees. A maximum deduction of Rs 1.5 lakh can be claimed in a financial year. Apart from this, deduction on health policy premium is allowed under Section 80D. Under Section 24B, deduction on home loan interest, exemption on HRA and standard deduction of Rs 50,000 is also available. This takes the total deduction to Rs 3-4 lakh.

Many taxpayers benefited from the old regime for FY25

Tax experts say that despite the government’s efforts to increase the use of the new regime, the old regime is more beneficial for many taxpayers for the financial year 2024-25. Niyati Shah, vertical head (personal tax) at 1 Finance, said, “The price of convenience should not be higher tax liability. If a salaried taxpayer is entitled to deductions, then the old regime may be beneficial for him.”

The post Why Salaried Taxpayers Earning Up to ₹12 Lakh May Lose Out Under the New Income Tax Regime first appeared on Rightsofemployees.com.

However, there is a difference in the amount of rebate. In the new regime, if a taxpayer’s annual income is up to Rs 7 lakh, then the rebate available under section 87A reduces his tax liability to zero. In the old regime, if a person’s annual income is up to Rs 5 lakh, then the rebate available under section 87A reduces his tax liability to zero. But, in some situations, taxpayers are not getting this rebate. Chartered accountant Abhas Halkhandi has told about this in a post on the social media platform X.

Halkhandi and some other chartered accountants have said that in the new regime, if a taxpayer has any special rate income like short term capital gains, then he is not getting the benefit of rebate under section 87A. It is worth noting that according to the amendment made through Budget 2025, the rebate available under section 87A does not apply in the case of special rate income. But, this change is applicable from the financial year 2025-2026. This means that even if there was special rate income in the previous financial year, rebate should be available under section 87A.

In the financial year 2024-25, if a person’s taxable income is up to Rs 7 lakh, then he can get a rebate of up to Rs 25,000 under section 87A in the new income tax regime. The revised rule is applicable from the financial year 2055-26. According to this, if a person’s income is up to Rs 12 lakh annually, then he can get a rebate of up to Rs 60,000 under this section. But, if the taxpayer has any special rate income, then this rebate will not be available.

But, chartered accountants say that taxpayers are not getting the benefit of rebate under section 87A even during the financial year 2023-24 and 2024-25. It has been observed that after July 5, 2024, income tax return filing utilities are not allowing rebate under section 87A on special rate income. This problem is still continuing. This is causing problems to those taxpayers whose total annual income was up to Rs 7 lakh in the last financial year, but the income includes special rate income.

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Updated return filing started in 2022

The Income Tax Department has informed about this on the social media platform X.To file ITR-U , the taxpayer has to visit the e-filing portal ( incometax.gov.in ). The updated return was started in 2022. The facility of updated return was started for such taxpayers who missed filing income tax return for some reason, gave any wrong information in ITR or forgot to mention any of their income in the return.

Can be filed within 48 months from the end of the assessment year

Section 139(8A) of the Income Tax Act, 1961 deals with updated returns. It states that taxpayers can file updated income tax returns within 48 months from the end of the assessment year. Earlier this period was 24 months. In the Union Budget 2025, it was increased to 48 months.

Benefits of updated return facility

Sometimes, due to some compulsions, some taxpayers are not able to file returns. However, there is a facility to file belated returns for taxpayers who do not file returns till the deadline. But, there are some taxpayers who also miss filing belated returns. Belated returns can be filed till 31st July of the respective assessment year. If a taxpayer has neither filed a return nor filed a belated return, he can file an updated return i.e. ITR-U.

Who cannot file ITR-U

There are certain situations in which taxpayers are not allowed to file updated returns. If filing an updated return reduces the taxpayer’s tax liability or he has a refund claim, then he cannot file an updated return. If a taxpayer is subjected to income tax search or seizure or if a tax case is pending against him in court, then he cannot file an updated return.

You will have to pay more tax for filing ITR-U

Taxpayers have to pay additional tax for filing updated returns. If they file updated returns within 12 months of the end of the relevant assessment year, they will have to pay an additional 12 per cent tax. If a taxpayer files ITR-U within 12 to 24 months, they will have to pay 50 per cent additional tax. If they file within 24 to 36 months, they will have to pay 60 per cent tax and if they file within 36-48 months, they will have to pay 70 per cent tax.

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There is a relief news for taxpayers. The Central Board of Direct Taxes (CBDT) has given a big relief regarding those Income Tax Returns (ITR) which were wrongly declared invalid due to technical glitches. Now all such returns, which were e-filed till 31 March 2024, will be processed till 31 March 2026.

CBDT had received complaints that the Income Tax Centralized Processing Center (CPC) in Bengaluru had mistakenly rejected some returns due to technical reasons. Returns whose valid processing deadline was 31 December 2024 can now be processed till 2026 under the new order. That is, those whose ITR was declared invalid earlier can now expect relief.

Exemption given under section 119, refund will also be available

The CBDT has relaxed the time limit under section 119 of the Income Tax Act. Now, these taxpayers will be sent a notice of return processing under section 143(1) by March 31, 2026. After this, if a refund is due, it will also be available—although a condition will apply. The important thing is that if someone’s PAN and Aadhaar are not linked, then they will not be given any tax refund. It has been clarified that Circular 03/2023 will be applicable in such cases.

You can still file ITR

If you have not been able to file your ITR for the financial year 2024-25 yet, then do not worry. Its last date is 15 September 2025. If this date is also missed, then belated return can be filed till 31 December 2025. Even after this, if any mistake is made, then the option of filing updated return is available for 4 years after the end of the assessment year.

Who will get the benefit?

This decision will benefit lakhs of taxpayers whose ITR was declared invalid due to technical reasons and whose refund or tax adjustment was stuck till now. Now these cases will be reconsidered and the processing of those who had e-filed on time will be completed by 2026. According to CA Mohit Gupta, this decision is a big step in the right direction. This exemption given under section 119 will provide relief to those taxpayers who were stuck due to technical reasons.

You can also fill ITR yourself

Let us tell you that if your income is limited to salary, rent or some common investments, then you do not need any CA or expert to file Income Tax Return (ITR). This work has now become very easy, fast and safe on the government’s official website incometax.gov.in . Here you get the ITR form pre-filled, like your salary, bank interest and TDS information is already entered. Just check it carefully once, and if needed, make changes and fill the rest of the information.

However, if your income includes business, capital gains from selling shares or assets abroad, it would be better to take the help of a Chartered Accountant (CA). This will help you to follow the tax rules properly and there will be no scope for error.

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The Central Board of Direct Taxes has given a big relief to the taxpayers. CBDT has given more time for processing the income tax returns filed through electronic means. Let us tell you, these were wrongly validated by CPC Bangalore due to technical reasons.

What has been said in the CBDT circular

In a circular issued by the CBDT on Monday, it was directed that the ITRs filed through electronic means till March 31, 2024 which were wrongly invalidated can now be processed. Information about all these returns will be sent to the taxpayers by March 31, 2026.

This decision will help taxpayers get refund along with interest. It has been clarified in the circular issued that if the PAN card is not linked to the Aadhaar card, then they will not be refunded.

CBDT has directed all parties on this issue to work as per the circular.

Central Board of Direct Taxes issues Circular 10/2025, providing relaxation of time limit for the processing of electronically filed income tax returns.

For detailed information, access the Circular 10/2025 via the link below:https://t.co/S9PYBjgvwn pic.twitter.com/T0fevCCD0S

— Income Tax India (@IncomeTaxIndia) July 28, 2025

Tax File Deadline

The window for filing ITR for assessment year 2025 has opened. Along with this, many changes have been made in it. Especially capital gains have to be kept in mind. Taxpayers should look carefully at the updated tax slab rates

The post Good News! CBDT Gives Extended ITR Processing Time to These Taxpayers first appeared on Rightsofemployees.com.

What is the matter- As per the current rules, if your income does not come under the tax bracket but TDS has been deducted from the bank or job, then it is necessary for you to file ITR to get a refund.

If you do not file ITR on time, then there is a risk of penalty or prosecution – even if you do not have any tax liability.

What will be the effect-

This provision has the greatest impact on people whose income is limited, such as:

Senior citizens

People living on pension

Temporary/contract employees

Small investors from whose FDs TDS is deducted

Most of these people do not come under the tax bracket, but still they are forced to file returns just for the refund.

What the committee says-

The Lok Sabha Select Committee has recommended the removal of sub-clause (1)(ix) of Section 263, which makes filing of ITR mandatory for refund.

The committee report says that forcing people with low income to file ITR only for refund is an undue burden. Failure to do so also creates a fear of punishment – which is wrong in practice.

What will change if the recommendation is accepted?

People whose income is less than the basic exemption limit will not be required to file ITR for refund. There will be no fear of penalty or legal action. Simplicity and justice will increase in the system.

What does it mean for taxpayers- If you file ITR every year only for refund, then now this compulsion can end. This will provide great relief to the elderly and people with limited income. The tax system will become more taxpayer-friendly.

What happened in Parliament

Bill introduced: 13 February 2025

Sent to committee: Same day

Report presented: 21 July 2025 (Select Committee Chairperson Baijayant Panda)

Members in the committee: 31 Lok Sabha MPs

Overall- If your income is less than the tax and you file returns only for refund, then the upcoming law can give you freedom from this hassle. This change is being considered a big step towards a simple tax system and respect for honest taxpayers.

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Tax experts say that even though the Central Board of Direct Taxes (CBDT) has extended the last date, taxpayers should not wait for the last date to file their returns. The reason for this is that in the rush to file returns near the last date, you can make a mistake, which can cost you a lot.

Be careful and vigilant while filing returns

The Income Tax Department wants to bring maximum people under the purview of compliance. For this, it is constantly strengthening its surveillance system. It keeps a watch on the high value transactions of people. If the department feels that the high value transactions of a taxpayer do not match his income, it sends a notice to the taxpayer.

Therefore, you need to be very careful while filing your income tax return. You have to remember that every income, big or small, has to be declared in the return. If you have earned profit by investing in cryptocurrency, then you have to declare it in the return.

Also Read: Navya Scheme 2025: Central government started ‘Navya’ scheme for girls, Key benefit and how to apply

In case of error, a revised return can be filed.

A partner at a tax consultancy firm said that you should take your income tax return very seriously. Before filing your return, you should collect complete information about all your income. If you forget to declare any income in your return, you may later get a notice from the Income Tax Department. If the department feels that you have done it intentionally, then you can get into big trouble.

Taxpayers may have to pay penalty

Section 276C of the Income Tax Act, 1961 states the steps that the Income Tax Department can take against a taxpayer if it is proven that he is at fault. These include claiming wrong deduction, using fake receipt or certificate for deduction, action to be taken for not disclosing any income in the income tax return.

According to this section, if a taxpayer is found guilty, he may have to pay a fine of up to 200 percent of his tax liability. Not only that, he may also have to go to jail.

A deliberate mistake can result in imprisonment.

Section 276C states that if a taxpayer intentionally evades tax and the amount evaded exceeds Rs 100,000, he can be sentenced to imprisonment. Initially, the sentence will be for 6 months, but later it can be increased to 7 years.

Apart from this, a penalty can be imposed on the taxpayer. Tax experts say that if a taxpayer unintentionally forgets to disclose any income, then he does not need to worry. If he remembers, then he can file a revised return. If you do not remember later and the Income Tax Department sends you a notice, then you can tell the department the truth.

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The post ITR 2025: Giving wrong information in ITR can lead to jail, know what are the rules… first appeared on Rightsofemployees.com.

Earlier the deadline for non-audit category taxpayers was 31 July, that is, now they have got 45 days extra time. Filing ITR means giving complete information about your income, tax saving investments, tax deductions and tax payment to the government. According to the Income Tax Act, 1961, if your annual income is more than the basic exemption limit, then it becomes necessary to file ITR.

This time the tax department has given this extension in view of the changes in the ITR form, problems related to TDS and other technical reasons. Meanwhile, the department has also released ITR utility tools, which make online ITR filing easier.

How to file ITR?

ITR filing can be done both offline and online, but most people now prefer to file returns online through the e-filing website. PAN based user ID is used to login to this portal and pre-filled information is also available in it, which makes the process even easier.

Salary class people should wait a little

Although ITR forms and utilities are now available, salaried class people usually start filing returns only after June 15. The reason for this is Form 16, which is the most important document for employed people and most companies issue it in the last week of June or early July.

Documents required to file ITR

As soon as you get Form 16, other necessary documents also have to be collected like Form 26AS, Annual Information Statement (AIS), Tax Information Statement (TIS), bank statement and interest certificate etc. All these help in cross checking the income and tax details. After this, the next step is to choose the right ITR form. The Income Tax Department has issued a total of 7 forms from ITR-1 to ITR-7 for the financial year 2024-25. Of these, ITR-1 to ITR-4 are generally for individuals and HUFs.

Easy way of e-Filing- Step by step guide

step 1:

• Go to the Income Tax e-filing website and click on ‘Login’
• Enter your PAN number in the User ID field
• Click on ‘Continue’ and enter the password
• Then press ‘Continue’ again and login

Step 2 – Go to ‘e-File’ tab > select ‘Income Tax Returns’ > ‘File Income Tax Return’

Step 3:

• Select ‘AY 2025-26’ as Assessment Year
• Select ‘Online’ in the filing mode
• Choose either Original or Revised return option in filing type

Step 4:

• Select your status – Individual, HUF or Others
• For most people, ‘Individual’ is the option they have to select.

Step 5 –

• Now choose the correct ITR form
• This is decided according to your income source

Step 6:  Specify the reason for filing – like your income exceeds the tax exemption limit or you fulfil certain criteria

Step 7:

• Check the details already filled in the system – like PAN, Aadhaar, name, contact and bank details
• Also verify your income, exemptions and deduction details carefully

Step 8:

• Finally, verify your ITR
• You can do this through methods like Aadhaar OTP, Net Banking, EVC
• Or you can take a printout of ITR-V, sign it and send it to CPC, Bengaluru.

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Apart from this, several changes have also been made in Form 16 which is given to employees by the employer. In such a situation, a question has arisen in the minds of many taxpayers that whether the last date of ITR will be different this time.

This time taxpayers will have to file income tax returns for the financial year 2024-25. However, the rush to fill the ITR form among taxpayers has not started yet. The main reason for this is the non-receipt of Form 16 from employers. First, many changes are being made in Form 16 this time and secondly, employers should make Form 16 available to their employees by June 15. Obviously, the real rush to file income tax returns will start only after June 15. If someone does not get Form 16, then he can also file his return through Form 26AS.

What is the deadline?

The last date for filing ITR is usually July 31 and it is believed that the last date will be the same this time too. For the convenience of taxpayers, the government has simplified the ITR form, in which most of the information will be pre-filled. To avoid last-minute rush, taxpayers are advised to file their returns well in advance.

What happens if the deadline is missed?

If a taxpayer misses the deadline of July 31, he still has time to file his return with penalty and interest. Such taxpayers can file their returns till December 31. They will only have to pay some penalty and interest. However, if there is a taxpayer who needs to get his account audited, then he gets a chance to file his return till October 31 without any penalty or interest.

How much is the penalty?

If an individual taxpayer fails to file his ITR by July 31, he will have to pay a penalty. The penalty amount is Rs 1,000 for income up to Rs 5 lakh, while taxpayers earning more than Rs 5 lakh are given a chance to file their returns by December 31 by paying a penalty of Rs 5,000. However, such taxpayers are not given any further opportunity to adjust their losses.

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The Income Tax Department has notified all the seven ITR forms (ITR-1 to ITR-7) for Assessment Year (AY) 2025-26, which will be applicable for income from Financial Year (FY) 2024-25 i.e. 1 April 2024 to 31 March 2025. Each form is designed for different types of taxpayers, including salaried individuals, businessmen, HUFs, firms, trusts and companies, etc. CBDT has also made some important changes in these forms this year, especially regarding capital gains, deductions and disclosure rules. Let us understand each form in detail and see what is new in AY 2025-26.

ITR-1 (Sahaj): Simple form for small taxpayers

ITR-1, also called Sahaj, is for those whose annual income is up to Rs 50 lakh and are residents of India (i.e. those who stay in India for at least 182 days but are not ordinarily resident). This form is for those having income from salary, pension, income from one house property, interest (such as from bank deposits) and agricultural income up to Rs 5,000.

This year, a big change in this form is that now you can show Long-Term Capital Gains (LTCG) which are under section 112A, i.e. gains up to Rs 1.25 lakh from listed shares or equity mutual funds in this form. Earlier, if you had any capital gains, you had to fill ITR-2, which is more complex. Now this new change will bring relief to small investors, as they can show their income in a simple form. But keep in mind, if you have a capital loss which needs to be carried forward, then this form is not for you.

Also, ITR-1 is not for those who are directors in a company, invest in unlisted shares, or have any assets or income abroad. Another change is that you will now have to provide details of all your active bank accounts, except dormant accounts. Also, if you are claiming section 80GG (rent deduction if HRA is not received), you will be required to file Form 10BA electronically.

ITR-2: For salaried and capital gains individuals

ITR-2 is for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession but have salary, more than one house property, capital gains (short-term or long-term) or foreign assets/income. This form can also be used by those who want to club the income of their wife or minor child, provided the income falls in the categories mentioned above. There are some important changes in ITR-2 this year. First, you will now have to show capital gains separately—for transactions before and after July 23, 2024. This is because Budget 2024 has reduced the long-term capital gains tax on property from 20% (with indexation) to 12.5% ​​(without indexation). If you purchased the property before July 23, 2024, you have the option to choose 12.5% ​​without indexation or 20% with indexation.

The second major change is that the loss on share buyback will now have to be shown in the capital gains section and the amount received from the buyback as dividend in ‘income from other sources’. This change is applicable from October 1, 2024 under the Finance Act 2024.

Third, you will have to give details of your assets and liabilities in Schedule AL only if your total income is more than Rs 1 crore. Earlier this limit was Rs 50 lakh, which has given relief to middle-income taxpayers. Also, now you will have to mention TDS section codes (like 194I, 194J), which will increase transparency.

ITR-3: For businesses and professionals

ITR-3 is for individuals and HUFs whose income is from business or profession, such as those running a proprietary business or professionals (doctors, lawyers, etc.). This can also include capital gains, lottery income or income from more than one house property. There have been some changes in ITR-3 this year as well.

First, the threshold for Schedule AL has been increased from Rs 50 lakh to Rs 1 crore, that is, if your income is less than Rs 1 crore, you will not be required to provide details of your assets and liabilities.

Second, capital gains must be bifurcated into before and after July 23, 2024, as in ITR-2.

Third, if you are a partner in a partnership firm, you will have to provide more details, such as the profit-loss details of the firm. Also, dropdown menus have been added for deductions like Section 80C, 80D, which will make filing easier.

ITR-4 (Sugam): For small businesses and professionals

ITR-4, called Sugam, is for resident individuals, HUFs and firms (except LLPs) whose total income is up to Rs 50 lakh and whose business or professional income is under the presumptive taxation scheme (sections 44AD, 44ADA, 44AE). In this form too, you can show income like salary, one house property and interest. The biggest change this year is that now you can show long-term capital gains (section 112A) up to Rs 1.25 lakh in this form, provided you do not have any capital loss.

Earlier, such taxpayers had to file ITR-2 or ITR-3. Apart from this, the turnover limit of section 44AD (for business) has been increased from Rs 2 crore to Rs 3 crore, provided 95% of the transactions are digital. For professionals, the limit of section 44ADA has been increased from Rs 50 lakh to Rs 75 lakh.

Also, if you want to opt-out of the new tax regime, you need to file Form 10-IEA, and its details need to be mentioned in ITR-4.

ITR-5: For firms and LLP

ITR-5 is for firms, limited liability partnerships (LLP), association of persons (AOP), body of individuals (BOI) and artificial juridical persons. In this form also the rule of separate reporting of capital gains (before and after 23 July 2024) is applicable.

Also, it is necessary to provide details of TDS section codes. If your income is more than 1 crore, then information about assets and liabilities will have to be given in Schedule AL.

ITR-6: For companies

ITR-6 is for companies registered under the Companies Act. This form also requires split reporting of capital gains and TDS codes. Apart from this, if the company has foreign income or assets, their details have to be given. There has been no major change in this form this year, but disclosures have been made more stringent keeping in mind the new tax rules.

ITR-7: For trusts and charitable institutions

ITR-7 is for those units which file returns under section 139(4A), 139(4B), 139(4C) or 139(4D). These mainly include charitable trusts, political parties, scientific research institutions and universities etc. This year, a rule has been added to show share buyback loss and dividend income separately. Also, if the trust has foreign retirement accounts, then their details will have to be given under section 89A.

All these changes are aimed at making tax filing easier and transparent. Taxpayers are advised to choose the right form as per their income and status and file the return before the deadline of 31 July 2025.

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In fact, many times the application gets rejected due to a slight mistake. In case of mistake, you may not only have to pay penalty but may also get a notice from the tax department.

To avoid penalty, delayed refund or scrutiny by the Income Tax Department, it is important to be careful while filing your taxes.

Today we will tell you what kind of common mistakes are often made while filing income tax returns and how they can be avoided.

Prepare early to avoid last minute rush

ITR forms for FY 2024-25 are available. This means you can start preparing to file returns from now onwards. People often make mistakes in a hurry near the deadline. Due to this, they either have to file the return again or have to face a notice from the Income Tax Department.

Choosing the wrong form

One of the common mistakes people make while filing returns is selecting the wrong ITR form. There are seven different forms for different income and taxpayer categories. If you do not select the right form, your return will be invalid and you will have to file ITR again.

For example, if you are employed and you have filled ITR-3 or ITR-5 form, which is for those having business or professional income, then it will become invalid and you will have to file ITR again.

You may have to pay a fine if you miss the deadline

The last date for filing ITR is 31 July 2025. If a person files the return after this date, he may have to pay a fine of up to Rs 10,000. Not only this, if you file the return late, you will not get the benefit of tax deductions and the losses cannot be carried forward. Therefore, filing the return on time is not only legally mandatory, but it is also beneficial for you.

Disclose income from all sources

Many times people show only their main income, such as their salary or business income, while filing returns. They forget to mention income from other sources or deliberately try to hide it. Do not make this mistake as it can cost you dearly. Other incomes such as interest on savings or fixed deposits, income from rent or capital gains from mutual funds. It is important to mention income from all these sources.

If you hide such income, the tax department can easily know about it from your Form 26AS or AIS (Annual Information Statement) and can send a notice if caught.
After filing the return, its verification is also necessary

Many times people file the return but forget to verify it. Let us tell you that any return without verification is considered invalid. That means after filing the return, it is equally important to verify it. You can do the verification process online through Aadhaar OTP or net banking. Remember this step is mandatory.

Must review Form 26AS and AIS

Before filing the return, you should review your Form 26AS and AIS (Annual Information Statement). These documents show which transactions have taken place in your name and how much tax has already been deducted. If the information you have given in the form does not match with these documents, then it can immediately come to the notice of the tax department. Therefore, it is important that the information you have filled while filing the return matches with these.

The post ITR Filing 2025: Do not make these 5 mistakes while filing income tax, otherwise you may be fined first appeared on Rightsofemployees.com.

Companies will soon make Form 16 available to employees. This time the Income Tax Department has made many changes in Form 16. These changes will make it easier for taxpayers to file returns. Earlier, where Form 16 had limited information, now with detailed details, this process will become more transparent and easier.

Form 16 is an important document for salaried employees filing ITR, which is issued by their employer i.e. the company. Form 16 contains important information related to the employee’s salary and TDS. In the new format, information related to tax deduction, exemption and salary will now be recorded more clearly. In the new format, taxpayers will now get more detailed information. Earlier, where only basic information was given, now there will be a detailed description of tax-free allowance, how much deduction was made, and which salary benefits came under the tax purview, etc.

Form 16 has two parts

Part A contains employee and employer details, TDS amount, and details of tax deductions every quarter. Part B contains salary breakup, exemptions under section 10 (such as HRA) and deductions under sections such as 80C, 80D. Form 16 not only helps in filing tax returns, but it is also used as income proof for bank loans. If an employee has paid more tax in a year, he can claim a refund on that basis.

The Income Tax Department will soon notify the Income Tax Return Forms. Taxpayers should gather all the necessary documents in advance so that there is no problem in filing the return and they do not face any technical or document related problems.

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This means that if a working person does not tell his employer’s finance department that he wants to use the old regime, then it will be assumed that the new regime is his choice. The biggest difference between the new regime and the old regime is in terms of deductions and tax slabs. Let us know about this in detail.

Who is the new regime beneficial for?

The new regime has lower tax rates, but most deductions are not available. This regime is suitable for those who do not make tax-saving investments. If you do not take full advantage of the deductions available under Section 80C, Section 80D and Section 24B of Income Tax, then the new income tax regime is beneficial for you. Tax calculation is also easy in this. There is no tax on income up to Rs 4 lakh.

What are the tax rates in the new regime?

In the new regime, the tax on income of Rs 4 to 8 lakh is 5%. The tax on income of Rs 8 to 12 lakh is 10%. The tax on income of Rs 12 to 16 lakh is 15%. The tax on income of Rs 16 to 20 lakh is 20%. The tax on income of Rs 20 to 24 lakh is 25%. The tax on income of more than Rs 24 lakh is 30%.

How many types of deductions are available in the new regime?

The standard deduction in the new regime is Rs 75,000. Secondly, if the employer contributes to the employee’s NPS account, then deduction is available on that. It has to be kept in mind that both these deductions are available to employed people. If a person does not do a job, then he will not get the benefit of both these deductions. This makes it clear that the new regime is beneficial for employed people.

Will there be no tax on income up to Rs 12 lakh in the new regime?

In the budget presented on February 1, 2025, the government has made income up to Rs 12 lakh per annum tax-free. Only taxpayers using the new regime will get the benefit of this. If a person is employed, it means that he will not have to pay any tax on income up to Rs 12.75 lakh. Experts say that since the government has not made any changes in the tax slabs and deductions of the old regime of income tax in the last several years, the new regime has now become more attractive.

Do taxpayers use the old regime only for deductions?

Most individual taxpayers use the old regime only to take advantage of deductions. Taxpayers are especially interested in taking advantage of Section 8C, Section 80D, Section 24B and HRA. But, a lot of documents have to be submitted for this. Apart from this, a person is forced to invest only in those investment options in which deduction is available. Due to this, he is not able to take advantage of the investment opportunity with high returns.

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If you are a taxpayer then this news is important for you. In fact, the Income Tax Department said on Thursday that taxpayers will not be allowed to deduct the expenses incurred to settle the proceedings initiated under four laws including SEBI and Competition Act. According to PTI news, in a notification issued on April 23, it has been told that the Central Board of Direct Taxes (CBDT) notified that any expenditure incurred to settle the proceedings initiated in respect of violations or defaults under four specified laws will not be considered to be incurred for the purpose of business or profession. No deduction or allowance will be given for such expenditure.

These are the four laws

According to the report, these four laws are – Securities and Exchange Board of India Act, 1992; Securities Contracts (Regulation) Act, 1956; Depositories Act, 1996; and Competition Act, 2002. Amit Maheshwari, Tax Partner at AKM Global, said that the deduction of settlement payments under Section 37(1) of the Income Tax Act, 1961, has long been a subject of judicial debate, especially in cases like Income Tax Officer vs Reliance Share and Stock Brokers (P.) Ltd., where consent fees paid to SEBI were allowed as business expenses on the basis of business convenience.

Any expenditure not eligible for deduction

The CBDT amended the law through the Finance Act, 2024 and has now notified that any expenditure incurred for settlement or compromise of proceedings under specific laws, including the SEBI Act, Securities Contracts (Regulation) Act, Depositories Act and Competition Act, whether in India or abroad, will not be eligible for deduction.

This effectively repeals earlier tribunal decisions and brings much-needed clarity to the tax landscape, although ambiguities remain under other regulatory laws such as FEMA and RBI directions, Maheshwari said.

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If you are going to buy a luxury bag, expensive watch, branded shoes or golf kit worth more than ₹ 10 lakh, then you will now have to pay 1% tax – called Tax Collected at Source (TCS). This rule has come into effect from 22 April 2025. The Income Tax Department has released a new list, in which 1% TCS will be levied on the purchase of luxury goods – if the price is more than ₹ 10 lakh.

On which items is TCS applicable- If the value of these items is above ₹10 lakh, then TCS will be applicable:- Watches (Wrist Watch), Art Pieces (Antiques, Paintings, Sculptures), Collectibles (Coins, Stamps), Yachts, Helicopters, Boats (Rowing Boats, Canoes), Sunglasses, Handbags, Wallets, Shoes, Sports Gear (Golf Kit, Ski-Wear), Home Theatre System, Horses for Racing or Polo.

How does it work-When you buy any of the above mentioned goods for more than ₹10 lakh, the seller will deduct 1% TCS and deposit the tax on your PAN number. This amount will be visible in your Form 26AS. You can claim it as tax credit while filing ITR. If you do not have any tax liability, then this amount will be refunded to you.

If PAN is not given then the rate of TCS will be 20%. That means on a purchase of ₹ 10 lakh, you will have to pay ₹ 2 lakh TCS! Through this, the government wants to stop unknown transactions.

What is the objective of the government- This scheme is not to increase revenue. Rather, its objective is to increase tax clarity, ensure income traceability, prevent under-reporting and tax evasion. If you have a hobby of luxury, then do not forget to provide PAN number in your purchases – so that you can avoid tax hassles later.

The post Tax New Rules: Taxpayers To Pay 20% Tax Instead Of 2% For Not Providing PAN Card? first appeared on Rightsofemployees.com.

There is useful news for taxpayers. Now you will have to pay 1% TCS (tax collected at source) on the purchase of luxury items like handbags, wristwatches, shoes, high-end sportswear and art objects worth more than Rs 10 lakh. Currently, TCS is being levied at the rate of one percent on motor vehicles worth more than Rs 10 lakh from January 1, 2025.

Notification of Income Tax Department

The Income Tax Department has notified the imposition of one per cent TCS on the sale of specified luxury goods exceeding Rs 10 lakh from April 22, 2025. TCS is collected from the buyer at the time of sale of specified goods and can be adjusted against the buyer’s tax liability while filing income tax returns.

Tax deduction at source does not generate any additional revenue, but it helps the tax department to detect high-value expenditure as PAN details have to be submitted at the time of purchase. The TCS provision for luxury goods and motor vehicles worth more than Rs 10 lakh was introduced in the Budget in July 2024 through the Finance Act, 2024.

Know what is the detail

The responsibility to collect TCS will be on the seller. This will apply to notified goods such as wristwatches, art objects such as paintings, sculptures and antiques, collectibles such as coins and stamps, yachts, helicopters, luxury handbags, sunglasses, shoes, high-end sports apparel and equipment, home theater systems and horses for race or polo, etc.

Sandeep Jhunjhunwala, tax partner, Nangia Andersen LLP, said that this notification reflects the government’s intention to increase monitoring of high-value discretionary expenditure and strengthen audit in the luxury goods segment. This notification reflects the broader policy objective of expanding the tax base and promoting greater financial transparency.

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An effort to digitally empower taxpayers

According to the news, the days of long queues in banks, tedious form filling and last minute tax payment worries are now over. Recognizing the need for easier 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 Income Tax Department said that this facility also encourages a culture of timely compliance by eliminating friction in the tax payment process. It brings tax administration closer to citizens, especially individuals and small businesses, by providing a direct digital route for them.

Which tax system is better in the new financial year

In the new financial year, taxpayers will need to choose between the new and the old tax system. In such a situation, with the increase in the exemption limit in the new tax system, it is important to know which tax system is better for them. According to experts, the new tax system is suitable for taxpayers with an annual income of up to Rs 12 lakh (Rs 12.75 lakh for salaried individuals), but which system will be better for individuals with more income than this depends on whether the taxpayer is planning any savings and investment to reduce tax liability or not.

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ITR Filing 2025: The new financial year has started and now the countdown to the most important task for taxpayers has begun. Taxpayers have to file Income Tax Return (ITR) by July 31. ITR filing for assessment year 2025–26 may start soon. If you want to file returns on time and without any mistake, then it is very important to keep some important documents ready from now on. Here is the complete checklist of documents that you should have before filing ITR.

1. PAN and Aadhar Card

PAN is necessary to file income tax return. Also, now it is mandatory to link PAN and Aadhaar. Your identity is verified through Aadhaar.

2. Form 16 (for salaried people)

This document is given by the company which contains information about your salary and the tax deducted. It has two parts – Part A (TDS details) and Part B (salary breakup). This Form 16 has to be given to the company by 15 June every year.

3. Form 26AS and AIS (Annual Information Statement)

Form 26AS is like your tax passbook which contains details of TDS, advance tax and big transactions. AIS contains details of all your sources of income – like salary, interest, dividend, shares etc. Be sure to cross check your TDS and income with this.

4. Bank account details

Keep information about all your active bank accounts. Especially it is important to fill the IFSC code and account number correctly so that there is no problem in tax refund.

5. Certificates of Interest

Take a statement of interest received on savings account, FD, RD from the bank or post office. This income is counted in Income from Other Sources.

6. Investment Proofs (for Tax Deductions)

Keep the required documents to get deductions under section 80C, 80D etc. like – life insurance premium receipts, PPF, ELSS, children’s fees, home loan documents and health insurance receipts.

7. Home loan and property documents

Get a certificate from the bank for interest on home loan and if you are claiming HRA then keep the rent receipt or agreement.

8. Capital gains statements

If you have sold shares, mutual funds or property, then collect the related sale-purchase receipts and statements.

9. Foreign income and assets (if applicable)

If you have earned money abroad or have property, it is mandatory to provide information about it.

10. Freelance or business related income

Maintain profit-loss statements, GST returns, and professional invoices.

11. Receipts of advance tax and self-assessment tax

12. Last year’s ITR copy and old tax notices

When will ITR filing start?

CBDT’s new ITR forms are released in April and the portal may open this month. But most salaried people file only after June, because Form 16 is available to them by June 15. So if you also want to file returns quickly and correctly, then do not forget to keep these documents ready in advance.

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Under this, taxpayers have been given time till 30 April 2025. According to the circular of CBDT, this declaration has to be made to the designated authority.

Vivaad se Vishwas Scheme is a government scheme aimed at resolving disputes between taxpayers and the Income Tax Department. This scheme gives taxpayers an opportunity to settle old tax disputes and get rid of all kinds of legal hassles.

The information regarding the last date of the Dispute to Trust Scheme was shared by Income Tax India on its X (formerly Twitter) handle.

CBDT notifies 30.04.2025 as the last date, on or before which a declaration in respect of tax arrears can be filed by the declarants to the designated authority under the Direct Tax Vivad se Vishwas Scheme, 2024.

Notification S.O. 1650(E) dated 08.04.2025 has been published in… pic.twitter.com/nrKx2QWuod

— Income Tax India (@IncomeTaxIndia) April 9, 2025

This Vivaad se Vishwas Scheme is also known as VSV 2.0, which has started from 1 October 2024. Under this, you can settle pending tax cases till 22 July 2024. With the help of this scheme, the government wants to reduce the cases stuck in disputes. Let us tell you that about Rs 30 lakh crore is stuck in disputed income tax cases.

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All such PAN card holders will now have to give their real Aadhaar number to the Income Tax Department, so that their PAN and Aadhaar can be linked. This usually happens when someone’s Aadhaar number is not issued at that time. The last date for this has been fixed as 31 December 2025.

If the Aadhaar number is not given by this deadline, then many problems may be faced in the future. This is especially important for those who have to file income tax returns. Such people should complete the process of PAN-Aadhaar linking before 31 July, so that there is no problem while filing the return.

Read official notification

According to Notification No. 26/2025 issued by the Central Board of Direct Taxes (CBDT), those who have been issued PAN card on the basis of Aadhaar enrolment ID before October 1, 2024, will be required to provide their Aadhaar number to the Income Tax Department by December 31, 2025.

This direction has been issued under section 139AA (2A) of the Income Tax Act, 1961. The notification clarifies that the concerned person has to provide his Aadhaar number to the Principal Director General (Systems), Director General (Systems) of the Income Tax Department or the person authorized by them within the prescribed time limit.

Things required to link PAN-Aadhaar:

• Valid PAN number
• Aadhaar Number
• Active mobile number

How to pay fees online for PAN-Aadhaar linking:

Step 1: Visit the e-filing portal
First of all, go to the income tax e-filing website. Click on ‘Link Aadhaar’ in the ‘Quick Links’ section on the homepage. If you want, you can also go to the ‘Profile’ section after logging in and click on ‘Link Aadhaar’.

Step 2: Enter PAN and Aadhaar number
Enter your PAN and Aadhaar number and then click on ‘Continue to Pay’.

Step 3: Generate OTP
Re-enter your PAN and enter any mobile number to get OTP. After verifying the OTP, you will be redirected to the e-Pay Tax page.

Step 4: Click on Income Tax tile
Now proceed by clicking on ‘Income Tax’ option.

Step 5: Select assessment year and payment type
Select the assessment year and choose ‘Other Receipts (500)’ in the payment type. Then click on ‘Continue’.

Step 6: Make payment and link Aadhaar
The fee amount will be pre-filled here. Click on ‘Continue’, after which the challan will be generated. Select the payment mode on the next screen. Visit the bank website and make the payment.

After paying the fees, you can link PAN with Aadhaar by visiting the e-Filing portal.

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The last few days of the current financial year 2024-25 are left. The Income Tax Department has taken an important decision to facilitate the settlement of pending tax related work for this financial year ending on 31 March. In fact, the offices of the Income Tax Department across the country will remain open from 29 to 31 March.

Despite the weekend and Eid-ul-Fitr falling on Monday, the offices of the Income Tax Department will remain open across the country. This means that taxpayers will be able to settle their tax related work even on a holiday.

What did CBDT say

The Central Board of Direct Taxes (CBDT) said in the order- All Income Tax offices across India will remain open on 29, 30 and 31 March 2025 to facilitate completion of pending departmental work. The last day of the current financial year is 31 March 2025. Therefore, all government payments and settlements related to this financial year have to be completed by the same day. The last date for filing updated income tax returns for 2023-24 is also 31 March.

Instructions for banks too

The Reserve Bank of India (RBI) has also issued instructions to banks doing government work to remain open on March 31 for the convenience of taxpayers. RBI said that necessary arrangements have also been made to conduct special clearing operations across the country to facilitate accounting of government receipts and payments in the current financial year itself.

Jump in direct tax collection

Net direct tax collection in the current financial year (2024-25) has increased by more than 13 percent to cross Rs 21.26 lakh crore. During the year, the government has collected Rs 10.44 lakh crore from four installments of advance tax, an increase of 14.62 percent, as against Rs 9.11 lakh crore in the previous financial year. The last installment of advance tax payment for the current financial year was due on March 15, 2025.

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The Finance Bill 2025 was passed in the Lok Sabha on Tuesday. It includes 35 government amendments. This is an important process to implement the proposals of the Union Budget 2025-26. In the debate on the Finance Bill 2025, Finance Minister Nirmala Sitharaman said that a big relief has been given to taxpayers in the Union Budget 2025-26. Its aim is to increase domestic production and increase export competitiveness.

During the discussion on the Finance Bill, the Finance Minister highlighted the changes made with the aim of making tariff rationalization and promoting domestic manufacturing. Finance Minister Sitharaman said that the process of rationalization of customs duty announced in the budget proposal for 2025-26 is progressing. To increase domestic production, the government has exempted 35 additional capital goods for EV batteries and 28 items for mobile manufacturing from customs duty.

New Income Tax Bill to be introduced in Monsoon Session

Now that the budget has been approved by the Lok Sabha, it will be put up for discussion in the Rajya Sabha. However, the Upper House does not have the right to vote on the budget and cannot reject any proposal. Apart from this, the Finance Minister said that the new Income Tax Bill will be introduced in the next session of Parliament i.e. Monsoon Session and it will replace the Income Tax Act 1961.

The target of fiscal deficit in the financial year 2025-26 is 4.4 percent.

The Finance Minister further said that in the general budget, the target of fiscal deficit in the financial year 2025-26 has been set at 4.4 percent, which was 4.8 percent in the financial year 2024-25. In the Union Budget 2025-26, income tax exemption has been increased to Rs 12 lakh per annum to increase consumption. This will save more money in the hands of the middle class than before.

Total expenditure is estimated to be Rs 50.65 lakh crore

Net market borrowing has been fixed at Rs 11.54 lakh crore in the budget. The remaining fund will come from small savings scheme. The budget proposes gross tax revenue collection of Rs 42.70 lakh crore and gross borrowing of Rs 14.01 lakh crore. The total expenditure in the Union Budget 2025-26 is estimated to be Rs 50.65 lakh crore, which is 7.4 percent more than the current financial year.

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Recently, Budget 2025 has increased the rebate limit to Rs 12 lakh under the new tax regime. But there is still no clarity on whether this applies when a taxpayer has both regular income (such as salary) and special rate income (such as STCG, short-term capital gains).

What is the problem?

Under the new regime, taxpayers with total income up to Rs 7 lakh can claim exemption, which will reduce their tax liability to zero.

However, according to experts, it is not clear whether this will apply to special rate income like capital gains. Yeshu Sehgal, head of tax markets at AKM Global, said that there is a problem in the application of Section 87A rebate, especially for taxpayers who have both regular income and special rate income like STCG.

There is confusion over whether the rebate should be calculated on the total income or only on the regular income portion.

The Central Board of Direct Taxes (CBDT) has excluded short-term capital gains (STCG) and long-term capital gains (LTCG) from exemptions while processing returns through the ITR utility portal, due to which many taxpayers are being sent tax notices.

Gaurav Jain, direct tax partner, Forvis Mazars, said that the CBDT has taken suo motu cognizance of the ITR utility portal and has refused to give the benefit of exemption under section 87A on such short-term and long-term capital gains, which has led to a controversy.

When is the exemption given

• When normal income is taxed as per slab rates.
• Long-term capital gains under section 112 (on capital assets other than listed equity shares and equity mutual funds).
• Short-term capital gains under section 111A (15% tax on listed equity shares and equity mutual funds).

When exemption is not given

Long-term capital gains under section 112A (10% tax on equity shares and equity mutual funds).

Jain said that some taxpayers believe that exemption under section 87A should be available on total income including capital gains. Some CIT(A) rulings have supported this. Until the matter is resolved legislatively or judicially, taxpayers should oppose the denial and file an appropriate reply.

What should taxpayers do when they receive a notice?

• Review the notice – Check whether the exemption claimed is as per the tax provisions.
• Consult a tax expert – Consult a Chartered Accountant (CA) to validate the claim.

File a rectification or appeal – If wrongly rejected, file a rectification request or contest the notice.

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These focus on senior citizens, investors and commission earners. The purpose of these changes is to simplify the tax process for taxpayers and businessmen by removing difficult things. Let us see how these changes will benefit different categories.

Income

Senior citizens will now be exempted from TDS on interest income of up to Rs 1 lakh per year, which is much higher than the previous limit of Rs 50,000. Meanwhile, the TDS exemption limit for general citizens has been increased from Rs 40,000 to Rs 50,000. This also includes interest income earned from fixed deposits (FDs) and recurring deposits (RDs) and other such options.

Tax

Senior citizens can now avail tax exemption of up to Rs 15,000 depending on their tax bracket. Apart from this, the limit of TDS exemption on rental income has been increased from Rs 2.4 lakh to Rs 6 lakh per annum or Rs 50,000 per month. Whereas the previous limit was Rs 20,000 per month.

Stocks and Mutual Funds

Investors in stocks and mutual funds will also benefit from the increased TDS exemption on dividends and income from mutual fund units or specified companies, which has been raised from Rs 5,000 to Rs 10,000. Apart from this, individuals involved in cross-border transactions (i.e. transactions between two countries) will benefit from the changed TCS limit under the Liberalised Remittance Scheme (LRS), which has been raised from Rs 7 lakh to Rs 10 lakh. Meanwhile, education loans obtained from certain institutions will now be exempt from TCS at all.

Lottery

The government has also increased the TDS limit for income from lotteries, crossword puzzles and horse races. It is now more than Rs 10,000 per annum. Under the previous rules, TDS was applicable when the total winnings exceeded Rs 10,000 per annum, even if received in several smaller amounts. With the new rules, TDS will be deducted only when a single transaction exceeds Rs 10,000.

Insurance and Brokerage Commissions

Budget 2025 has increased the TDS limit for various commissions, providing relief to insurance agents and brokers. The TDS limit for insurance commission has been increased from Rs 15,000 to Rs 20,000, which will be effective from April 1, 2025. These changes are aimed at simplifying compliance requirements and improving cash flow for small income earners in these industries.

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The last date for paying advance tax is March 15, 2025. If you do not pay the advance tax within this stipulated time limit, a penalty will be imposed under sections 234 B and 243 C.

Advance tax has to be paid 4 times a year

Advance tax is paid in the same financial year in which the income is earned. It has to be paid four times in a financial year. If it has to be paid in four installments. Taxpayers have to pay 15% of the total tax liability by June 15. While 45% has to be paid by September 14. This includes the installment paid in June. By December 15, the liability is 75% which includes the installments of June and September. According to the Income Tax Act, 100% of the entire tax has to be paid by March 15.

Who has to pay advance tax?

Any taxpayer other than a salaried class individual whose tax liability for the financial year is Rs 10,000 or more in any accounting year after deduction of TDS. Additionally, individuals who have income above their salary, such as rent, capital gains, FDs or lottery winnings, are required to pay advance tax.

What will happen if you do not pay advance tax?

The Income Tax Department charges interest on the advance tax installment. Interest is charged under Section 234B and Section 234C of the Income Tax Act. Therefore, if someone does not pay advance tax or delays the advance tax payment, he has to pay more tax in the form of interest. It is important to calculate your advance tax correctly and pay it on time.

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The post Income Tax Deadline: Last four days left for last instalment of advance tax first appeared on Rightsofemployees.com.

Income tax officer looks at the source of income

When the Income Tax Department selects an income tax return for scrutiny, the officers look at the income shown in the income tax return and the source of income of the taxpayer. Then what is the reason for asking questions about the personal expenses of a taxpayer? The answer is that every person has to make some necessary expenses for himself and his family members. These include expenses on ration, insurance, expenses on social functions, hair cutting expenses, expenses on eating in restaurants, etc.

Mismatch between taxpayer’s income and expenses

Such expenses depend on the status of the person and some other things. These include education, number of family members, marital status and the area where the person lives. Based on all these things, a person spends a certain amount on his personal needs. However, many people file their income tax returns without paying attention to these things. If a person does not withdraw enough money from the bank for his expenses, it raises suspicion.

A person’s expenses may be more than his income

This raises doubts whether the person’s income is from an undeclared source, which is used for personal expenses. If a person receives such a notice and he has used his bank account or credit card for family expenses, then he can inform the Income Tax Officer about this. This ends the matter. If this expenditure is made by a close relative, then also he can inform the Income Tax Officer about this. He will have to give details of the relative’s income.

Penalty may be imposed for not disclosing the source of income

If a person does not properly tell the income tax officer about his expenses, then it will be assumed that he has some undeclared income and then a penalty will be imposed. If the taxpayer feels that the calculation of the income tax officer is not correct, then he has the right to appeal.

(The author is a chartered accountant. He is an expert in personal finance, especially matters related to income tax.)

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The post The Income Tax Department may ask you questions about your family expenses, including your monthly ration expenses first appeared on Rightsofemployees.com.

These changes will ensure that taxpayers do not have to face the problems of tax deduction and collection like before when sending money abroad, making big purchases or doing business transactions. Let us know what special changes have been made in the budget this time.

New limit of TDS

When you earn interest, pay rent or make any big payment from the bank, TDS is deducted after a certain limit. In this budget, it was proposed to rationalize these limits, so that you do not have to face unnecessary tax deductions again and again and the cash flow remains better.

Relief on sending money abroad

If you send money abroad for children’s education, family expenses or any other reason, then now there is a relief news for you. Earlier, TCS had to be paid for sending an amount of more than Rs 7 lakh, but now this limit has been increased to Rs 10 lakh. Not only this, if the money is being sent through education loan, then no TCS will be levied on it. This will provide great relief to students studying abroad and their parents.

Good news for businessmen

If you do business and your sales are large, then now you will not need to deduct 0.1% TCS on sales of more than Rs 50 lakh. This rule will be completely abolished from April 1, 2025, which will give better cash flow to businessmen and ease tax compliance.

Those who do not file tax returns will not be deducted more TDS/TCS

Till now, if a person did not file Income Tax Return (ITR), then TDS/TCS was deducted from him at a higher rate. In Budget 2025, it has been proposed to remove this provision, which will now provide relief to common taxpayers and small businessmen from unnecessary high tax rates.

Now there is no fear of going to jail for delay in depositing TCS

Till now, if a person did not deposit the TCS amount to the government on time, he had to face a punishment of 3 months to 7 years and a fine. Now this rule has been amended in Budget 2025, so that if the outstanding TCS is deposited within the stipulated time, then no legal action will be taken.

The post TDS & TCS Rule: Big news for Taxpayers! Major changes in TDS and TCS rules going to happen from April 1 first appeared on Rightsofemployees.com.

Taxpayers who want to update their income tax returns of previous years can file updated returns before March 31. Although you can file updated returns anytime but it should be within two years of the end of the respective assessment year. This means that those who want to update their returns for assessment year 2022-23 or financial year 2021-22 will have to file updated returns before March 31, 2025. The provision of filing updated returns was introduced in the Finance Act 2022 when Finance Minister Nirmala Sitharaman announced the facility of updated returns, in which taxpayers can file updated returns to correct errors or omissions. Apart from this, it was introduced on payment of tax.

Why updated returns are necessary

The two major reasons for introducing updated returns were to avoid litigation and encourage voluntary taxation. When tax officials detect tax evasion, the matter goes through a lengthy process of litigation. To prevent this, the Finance Ministry allowed taxpayers to file an updated return by paying the additional tax that they failed to pay when it was due. When it was launched in 2022, the maximum time limit was 2 years. In Budget 2025, this time limit has been extended to 48 months.

Which deadlines are expiring on 31st March?

Taxpayers can file updated returns for any previous year such as FY 2021-22 and 2022-23, but for FY 2021-22, the last date is March 31, 2025. It can be filed by any taxpayer in any case except in certain exceptional circumstances. A person can file an updated return even if he has previously filed a return of loss under section 139(3) for the relevant assessment year, but the updated return cannot be a tax return of loss.

The post Income Tax Deadline: Taxpayers can file an updated return before March 31 for THIS year, check details first appeared on Rightsofemployees.com.

About 40,000 such taxpayers are under investigation. This action is being taken on the basis of tax deducted in the financial year 2022-23 and 2023-24. The Central Board of Direct Taxes (CBDT) has prepared a 16-point plan to catch TDS defaulters. Apart from this, the data analytics team has prepared a complete list of such taxpayers for investigation.

A senior official said, “We have data from the analytics team. If someone has not deposited the tax, we will first inform them about it.” The officials will focus on repeat offenders. They will investigate cases where there is a big difference between tax deduction and advance tax payment. Cases where there have been frequent changes and corrections in the name of the deductor will also be investigated. Also, companies that have used sick units or loss-making companies in audit will be investigated.

What does the law say

The board has asked assessing officers to report cases of large disallowances under section 40(a)(ia) of the Income Tax Act. This section disallows deduction in cases where TDS has not been deducted or deposited with the government. Tax officers will also keep a close watch on cases where TDS returns have been amended multiple times and the amount of default has reduced significantly.

The board has asked field officers to also pay attention to complaints filed by deductors. Use data analytics to identify patterns and irregularities in TDS payments. The official said that like the department’s earlier campaigns, no one will be harassed in this too. In this year’s budget, the central government has announced rationalization of TDS and TCS rates. The number of rates and the limit of TDS deduction have been reduced.

Action on defaulter

The official said, “TDS compliance has been relaxed for honest taxpayers. But strict action will be taken against those who deliberately default. This will make the tax system fair and equitable.” The government hopes that this campaign will reduce tax evasion and increase revenue. Also, honest taxpayers will get encouragement. This will also strengthen the country’s economy.

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The post IT Department is Preparing to Take Action against These Approximately 40,000 Taxpayers first appeared on Rightsofemployees.com.

Let us know how a common taxpayer will benefit from this initiative of the government. If you also have to file your updated return, then how will you be able to do it. We are trying to answer all your questions.

What is Updated ITR (ITR-U)?

Updated ITR (ITR-U) is a form that allows taxpayers to update their income tax returns. They can file their returns using this form if they have missed filing the original or belated returns or need to correct errors in previously filed returns. However, taxpayers cannot use ITR-U to claim refunds, reduce tax liability or set off losses.

Who can file ITR-U?

Any taxpayer who has made any mistake or omitted income details in any of the following returns can file an updated return.

When to file ITR-U?

Taxpayers will have to pay additional tax while filing ITR-U. The rate depends on how late the updated return is filed.

• File ITR-U within the additional tax due
• 25% of tax + interest within 12 months from the end of the relevant Assessment Year (AY)
• 24 months from the end of the respective AY 50% of tax + interest
• 60% of tax + interest 36 months from the end of the respective AY
• 48 months from the end of the respective AY 70% of tax + interest

Who cannot file ITR-U?

• Updated return has already been filed.
• Filing of nil return or loss return.
• Want to increase the refund amount.
• Updated returns result in lower tax liability.
• Search or survey has been initiated under section 132, 133A, or 132A.
• Tax assessment/reassessment is pending or completed.
• No additional tax is due (adjusted with TDS/loss).

How to file updated returns? 

• Download the ITR-U form from the Income Tax Department website.
• Login to the e-filing portal and select “Update Return (ITR-U)”.
• Enter the required details including additional income and tax payable.
• Calculate and pay additional tax before submission.
• Submit the form and verify the return using Aadhaar OTP, Net Banking or DSC.

The post How to file updated income tax return after the budget, know the complete process here first appeared on Rightsofemployees.com.

It is being said that the government may announce some exemptions in the new tax regime. Experts are demanding to increase HRA, Section 80C tax deduction and standard deduction of Rs 1 lakh in Budget 2025.

Standard Deduction Limit

A new tax system was introduced in the Union Budget 2020, which aims to simplify the tax infrastructure. However, no exemption is given in this. Only standard deduction is available. The benefit of standard deduction is also given under the old tax system. Currently, the standard deduction in the new tax system is Rs 75 thousand, which can be increased to Rs 1 lakh. At the same time, the standard deduction in the old tax system is Rs 50 thousand. This can also be increased to Rs 1 lakh.

Limit of Section 80C

Under Section 80C of the Income Tax Act, 1961, taxpayers are given tax exemption on investment up to Rs 1.5 lakh. In such a situation, now there is a demand to increase its limit, which has not changed for a long time. There is a demand to increase it to Rs 2 lakh. Currently, investors can claim exemption by investing in places like PPF, LIC, PF and home loan.

Home loan

individuals are eligible to claim deduction on payments made towards the principal amount of the home loan under section 80EE. The deduction for home loan interest payment can be up to Rs 50,000 per financial year. There is a demand to increase this in the budget as well.

HRA exemption

is also a common demand of taxpayers that HRA exemption should be included in the new tax system. Currently, this benefit is applicable only under the old tax system, which leads to tax saving. Experts believe that the inclusion of this exemption will be of great help to people.

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The post Budget 2025: HRA, 80C and standard deduction…These big announcements can be made in the budget first appeared on Rightsofemployees.com.

Despite the deadline for filing monthly and quarterly returns approaching, the portal has not been working for more than 24 hours.

The last date for filing returns is Saturday 11 January 2025, but due to the problem of the portal, many traders are not able to file returns. In view of the current situation, traders are demanding the government to extend the deadline from January 11 to January 13.

The technical team is working on resolving this issue

Responding to the issue on Thursday, the official social media handle of GSTN acknowledged that some users are facing issues in preparing and filing their GSTR-1 summary. They also said that their technical team is working fast to resolve the issue.

Dear Taxpayers!📢

GST portal is currently experiencing technical issues and is under maintenance. We expect the portal to be operational by 12:00 noon. CBIC is being sent an incident report to consider extension in filing date.

Thank you for your understanding and patience!

— GST Tech (@Infosys_GSTN) January 10, 2025

A recent update informed users that the website is likely to be active by 12 noon on Friday, giving business owners a limited time to file returns before the deadline. The update also stated that some users were facing problems in preparing and filing GSTR-1 Summary, their technical team is working to resolve the issue quickly.

The portal is not working for a long time

At the same time, many people say that the portal is not working since January 8. According to people, they have been trying to fill the form for the last several hours but the file is not getting updated. This time business owners were hoping that there would be no problem while filing returns, but due to the portal being down, they are facing problems. More difficulties have arisen for those who were planning to file their returns on the last day.

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The post GST Portal Down: GST portal suddenly crashed before the deadline, demand to extend last date for filing returns first appeared on Rightsofemployees.com.

Under the Income Tax Act 1961, it has remained at Rs 1.5 lakh for the last decade. While inflation and income are constantly increasing, the limit of 80C has not been increased for a long time.

What is Section 80C?

Section 80C of the Income Tax Act is used by most taxpayers. It allows individual taxpayers and Hindu Undivided Families (HUFs) to claim tax exemption on investments and expenses. Exemption under 80C is available to taxpayers who file returns under the old tax regime. In the current system, a maximum exemption of Rs 1.5 lakh can be availed in a financial year.

Investments – Options under 80C

• Equity Linked Savings Schemes (ELSS)
• Public Provident Fund (PPF)
• National Savings Certificate (NSC)
• Employee Provident Fund (EPF)
• Unit Linked Insurance Plans (ULIP)
• Sukanya Samriddhi Scheme
• Senior Citizen Savings Scheme (SCSS)
• Five Year Tax Saving Fixed Deposit
• Tuition fees for up to two children
• Home Loan Principal
• Life insurance premium
• Contribution to National Pension System (NPS)

How to claim discount?

To claim deductions under section 80C, taxpayers must make investments or expenditures within the financial year (April 1 to March 31). These amounts have to be reported in the relevant section while filing income tax returns (ITR). Attaching certificates of investment and payment eases claim processing.

What are the expectations from Budget 2025?

The limit of Section 80C has been stagnant at Rs 1.5 lakh since 2014. Taxpayers and financial experts say it should be increased in line with the current economic situation. Rajiv Gupta, President, PB Fintech, said that since Section 80C covers investments like PPF and home loans, the exemption limit gets exhausted quickly. If term insurance is put in a separate tax exemption category, it will encourage life insurance and provide better protection to Indian families.

What does this limit mean for taxpayers?

If this limit is increased in Budget 2025, it will not only provide relief to taxpayers but will also encourage more investments in financial savings schemes.

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The post Budget 2025: Govt will increase the limit of Section 80C, What does this limit mean for taxpayers? first appeared on Rightsofemployees.com.

Union Budget 2025 is due within a month. The government may also introduce incentives to taxpayers in this budget to promote the new tax regime. After the policy announced in the July budget, the NDA 3.0 government is expected to take further steps to promote the new tax framework in the upcoming full budget. Discussions between the Prime Minister’s Office and leading economists have emphasized the need to promote fiscal measures to boost spending. In these discussions, several steps have been considered, from reducing income tax liability to increasing financial support for daily expenditure.

72% taxpayers adopted the new tax regime in AY 2024-25

Expectations of improvements in the new tax regime have increased, especially considering that the government is trying to make it more taxpayer-friendly. According to Finance Ministry data, about 72 per cent of the 7.28 crore taxpayers in the assessment year 2024-25 adopted the new tax regime while filing ITR. These figures are before the deadline of 31 July 2024. In contrast, only 28 per cent of taxpayers opted for the old tax regime.

The post Budget 2025: Government may offer incentives to taxpayers to promote the new tax regime first appeared on Rightsofemployees.com.

1. Belated/Revised Income Tax Return

The Income Tax Department has extended the deadline for filing belated/revised income tax returns for resident individual taxpayers. Its deadline was December 31, 2024. It has been extended to January 15, 2025.

2. Direct Tax Vivaad se Vishwas Scheme (DTSVS) 2024

The deadline for this scheme has been extended to January 31, 2025. This has given taxpayers additional time to settle their income tax related disputes. The government has launched this scheme to reduce the number of income tax related disputes.

3. Corporate Social Responsibility (CSR) 2024

The Ministry of Corporate Affairs has extended the deadline for filing Form CSR-2. It is mandatory for companies coming under the Corporate Social Responsibility Rules of the Companies Act, 2013 to file Form CSR-2. Now the deadline for this has been extended to March 31, 2025. This has given a lot of relief to the companies.

However, the Income Tax Department has not met all the demands of taxpayers and chartered accountants to extend the deadline. Many deadlines have not been extended beyond December 31, 2024.

The deadline for filing GSTR-9 and GSTR-9C under GST has not been extended. This has disappointed a large number of GST taxpayers.

The Income Tax Department has not extended the deadline for filing income tax returns for firms, companies, societies, NGOs etc. The deadline has not been extended for NRIs. If they have not filed or revised their income tax returns by December 31, 2024, then they will have to file an updated return and pay a penalty to the government in the form of additional tax.

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The post Income Tax: Big relief for taxpayers! Finance Minister has extended many deadlines for taxpayers first appeared on Rightsofemployees.com.

What has the Income Tax Department written?

The Income Tax Department has written in the post- ‘CBDT has extended the last date for filing belated/revised returns for Indian citizens for the assessment year 2024-25 from 31 December 2024 to 15 January 2025.’

CBDT extends the last date for furnishing Belated/ Revised return of income for AY 2024-25 in the case of Resident Individuals from 31st December, 2024 to 15th January, 2025.

✅Circular no. 21/2024 dated 31/12/2024 issued-https://t.co/DedADMfnGX pic.twitter.com/sBVdGZqxRF

— Income Tax India (@IncomeTaxIndia) December 31, 2024

Dispute to Trust Scheme date extended

The Income Tax Department on Monday extended the date for filing information for determining tax dues and waiver of interest and penalty under the Vivad Se Vishwas Scheme till January 31. As per the original rules of the Direct Tax Vivad Se Vishwas Scheme, 2024, taxpayers filing declaration before December 31, 2024 had to pay 100 per cent of the disputed tax demand. There is a provision to waive interest and penalty in such cases.

The Central Board of Direct Taxes (CBDT) said in a circular that the due date for determining the amount payable under the Vivaad se Vishwas scheme has been extended from December 31, 2024 to January 31, 2025.

CBDT extends due date for determining amount payable as per column (3) of Table specified in section 90 of Direct Tax Vivad Se Vishwas Scheme, 2024 from 31st December, 2024 to 31st January, 2025.

Circular No. 20/2024 dated 30.12.2024 issuedhttps://t.co/uYGf1Oh3g2 pic.twitter.com/agjuRsMHqg

— Income Tax India (@IncomeTaxIndia) December 30, 2024

According to the circular, the taxpayer will have to pay 110 percent of the disputed tax demand on declarations made on or after February 1, 2025. Taxpayers in whose cases there is a dispute / appeal has been filed can avail the benefit of this scheme.

If you also have to file your belated or revised ITR and you have not done it yet, then you still have time. And if you want to get benefit under the Vivaad se Vishwas scheme, then you have time for that too.

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The post ITR filing extended: Last date for ITR filing has been extended for these taxpayers, know till when the time limit is given first appeared on Rightsofemployees.com.

The last date of this scheme was fixed as 31 December, which has now been extended to 31 January. This means that for one more month taxpayers can settle their disputed tax with less amount. Let us tell you that this scheme was announced by the Finance Minister in the first budget of Modi 3.0. Let us know about it in detail…

Deadline extended for one month

The Income Tax Department had started the Vivaad se Vishwas scheme to settle the disputed tax issues of taxpayers, in which taxpayers troubled by income tax disputes can get it done by paying a small amount. The deadline of this scheme was also going to end on 31 December 2024 i.e. today. But on Monday itself, the Income Tax Department issued a notification in this regard and announced to extend its deadline for 1 month. If you want to settle the tax dispute by taking advantage of this scheme, then you now have time till 31 January 2025.

Otherwise, you will have to pay 110% payment

The Central Direct Tax Commission (CBDT) has issued a notification saying that now the benefit of Vivaad se Vishwas scheme will be available next year as well and disputed tax settlements can be done till January 31. It has been clearly stated that if taxpayers are unable to settle their disputes by the new deadline, then in such a situation, 110% payment of the disputed tax demand will have to be made on the declarations made on or after February 1, 2025.

These taxpayers will get the benefit of the scheme

Vivad Se Vishwas Yojna will be available to such taxpayers whose petition has been filed in relation to the disputed tax related matter. Taxpayers who have filed a petition in the Supreme Court, High Court or Income Tax Appellate Tribunal till July 22, 2024, or have been appealed by the tax officers, then they can get the benefit of settling the tax by paying a lesser amount under this scheme.

The government hopes that this scheme will resolve about 2.7 crore direct tax demands, the total amount of which will be about Rs 35 lakh crore. Four types of forms have been issued under this scheme of the Income Tax Department, which was started to settle these cases quickly.

These four forms have been issued

• Form 1 – In this you will file the declaration and give the undertaking.
• Form 2 – This will be for the certificate to be issued by the authority.
• Form 3 – Under this form, the declarant will give information about the payment.
• Form 4 – The authority will give information about the full and final settlement of the tax arrears.

Form 1 and 3 are the most important.

In the Vivaad se Vishwas Sarkari scheme, Form-1 has to be filled separately for every dispute related to income tax. Whereas in Form-3, you will have to share the payment information. In this, you will have to give it to the authority along with the proof of appeal, objection, application, writ petition or withdrawal of the claim. Form 1 and 3 can be submitted electronically by the taxpayers. These forms will be made available on the e-filing portal of the Income Tax Department i.e. www.incometax.gov.in.

What is direct and indirect tax?

In India, income tax comes under direct tax. People who fall under the prescribed range for this have to pay tax according to their income bracket and file income tax return (ITR). Indirect tax includes cases of goods and services tax i.e. GST. Whatever goods you buy or use any service like telecom, you have to pay GST on it.

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The post Income Tax Relief….Income Tax Dept extends Vivad Se Vishwas scheme deadline to January 31, 2025 first appeared on Rightsofemployees.com.

The Income Tax Department has released its tax calendar for the first three months i.e. January, February and March. By looking at this, you will be able to easily plan your tax savings and other tax liabilities. Let’s take a look at the Income Tax Calendar 2025.

January

• 14th January 2025 – Last date for issue of TDS certificate for tax deducted under section 194-IA in the month of November, 2024
• 15 January 2025 – Last date for submission of Form 24G by any office of the Government.
• Date for submission of quarterly statement of TCS for the quarter ending January 15, 2025 – December 31, 2024.
• January 15, 2025 – Date for submission of quarterly statement in respect of foreign remittances (to be submitted by authorised dealers) in Form No. 15CC for the quarter ending December, 2024.
• 30th January, 2025 – Date for furnishing challan-cum-statement in respect of tax deducted under section 194S (by specified person) in the month of December, 2024.
• January 31, 2025 – Date for reporting by Sovereign Wealth Funds in respect of investments made in India for the quarter ending December, 2024. 

February

• 7 February 2025 – Last date for depositing tax deducted for the month of January, 2025. 
• 14th February 2025 – Last date for issue of TDS certificate for tax deducted under section 194-IA in the month of December, 2024
• 15 February 2025 – Last date for submission of Form 24G by any office of the Government.  
• Last date for submission of quarterly TDS certificate for the quarter ending February 15, 2025 – December 31, 2024.

March 

• 2nd March 2025 – Date for depositing challan of tax deducted under section 194-IA in the month of January, 2025.
• 2nd March 2025 – Date of submission of challan in respect of tax deducted under section 194-IB in the month of January, 2025.
• March 7, 2025 – Date for depositing tax deducted/collected for the month of January, 2025.
• March 15, 2025 – Date for depositing the fourth installment of advance tax for the assessment year 2025-26.
• March 15, 2025 – Date for payment of full amount of advance tax in respect of assessment year 2025-26 for taxpayer falling under the presumptive scheme of section 44AD/44ADA.
• March 15, 2025 – Date for furnishing Form 24G by any office of the Government where TDS/TCS has been paid for the month of February, 2025 without submitting challan.
• 17th March 2025 – Date of issue of TDS certificate for tax deducted under section 194-IA in the month of January.
• 17th March 2025 – Date of issue of TDS certificate for tax deducted under section 194-IB in the month of January, 2025.
• March 17, 2025 – Date of issue of TDS certificate for tax deducted (by specified person) under section 194S in the month of January, 2025.
• March 30, 2025 – Date for furnishing challan-cum-statement in respect of tax deducted under section 194-IA in the month of February, 2025.
• March 30, 2025 – Date for furnishing challan-cum-statement in respect of tax deducted under section 194-IB in the month of February, 2025.
• March 30, 2025 – Date for furnishing challan-cum-statement in respect of tax deducted under section 194-IB. 
• March 31, 2025 – Date for furnishing details of foreign income proposed to be taxed in the previous year 2022-23 and tax deducted or paid thereon for claiming foreign tax credit.
• March 31, 2025 – Last date to file updated returns for assessment year 2022-23. 
• Last date to save tax for financial year ending on 31st March 2025 – 31st. 

Why is a tax calendar important? 

By knowing the tax calendar, you can plan your taxes in a better way. The tax calendar makes it easier for you to fulfill your tax liability. 

The post Income Tax Calendar 2025: Taxpayers must remember these key due dates to avoid penalties or interest charges first appeared on Rightsofemployees.com.

What is Section 87A?

Section 87A aims to provide relief to individual taxpayers, especially those in the low income group. It provides tax exemption to individuals whose total taxable income is up to ₹5 lakh under the old tax regime and up to ₹7 lakh under the new tax regime.

What’s the matter?

A public interest litigation (PIL) filed by ‘The Chamber of Tax Consultants’ argued that the filing utility software updated on July 5 arbitrarily denied taxpayers the right to claim exemption under section 87A of the Income Tax Act, 1961. The petition said that these changes made in the software used for filing returns for assessment year 2024-25 are illegal.

The Bombay High Court said, “The Central Board of Direct Taxes (CBDT) is directed to immediately issue the necessary notification under section 119 of the Income Tax Act and extend the deadline for taxpayers who are required to file returns by December 31, 2024, at least till January 15, 2025. It is necessary to ensure that all taxpayers eligible for exemption under section 87A are given an opportunity to exercise their statutory rights.”

What happens if we miss the new deadline?

• If a taxpayer misses the new deadline to file ITR for 2023-24, then many problems may arise.
• Penalties may increase – Penalties for late filing can go up to ₹10,000.
• Loss of profits – such as losses from business/profession and the opportunity to carry forward capital gains will be lost.
• Payment of Interest – 1% interest will accrue every month under Section 234A.

Important things to keep in mind while filing late return
Late Fees:

• Late fee of ₹5,000 for those with income above ₹5 lakh.
• Late fee of ₹1,000 for those with income less than ₹5 lakh.
• If the income is below the taxable limit, there will be no late fee.
• No Loss Carry Forward: Carry forward of losses from business/profession and capital gains will not be allowed.
• Tax exemptions: Certain special deductions like section 80IA, 80IB will also not apply.
• No change in tax regime: Change to old or new tax regime will not be allowed while filing late returns.

If ITR is filed on time, all these problems can be avoided. Therefore, taxpayers are advised to take advantage of the deadline extended by the High Court and file their returns on time.

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This can be announced in the upcoming budget to be presented on 1 February 2025.

The proposal aims to boost consumption amid a slowing economy and rising inflation. Currently, income from ₹3 lakh to ₹10.5 lakh is taxed at a rate of 5% to 20%, while income above ₹10.5 lakh is taxed at a rate of 30%.

Option to choose from 2 regimes

• Old regime: Which includes exemptions like house rent and insurance.
• New regime (2020): Which comes with lower tax rates but most exemptions are removed.
• Through the proposed reductions, the government wants to encourage more people to adopt the 2020 structure.

Economic and Political Context

According to reports, India’s GDP growth was the weakest in seven quarters in July-September 2024. At the same time, food inflation has increased pressure on the income of urban families, affecting the demand for vehicles, household goods and personal care products. Experts believe that if this proposal is implemented, consumers will have more disposable income, which can accelerate India’s economic activities.

Government’s position

According to sources, the decision to finalise the size of the tax cut and other details will be taken closer to the budget date. However, the Finance Ministry has not yet made any official statement about this proposal or its impact on revenue. It is believed that the loss of revenue to the government will be compensated as more people join the new regime.

Expectations of benefits:

If this proposal is implemented, then lakhs of taxpayers will get relief. This step will not only speed up the economic activities but will also fulfill the objective of the government to adopt a simplified tax structure.

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For how many days is the deadline extended?

The Bombay High Court has asked the CBDT to extend the deadline for filing belated income tax returns to at least January 15, 2025. This means that taxpayers will now get enough time to file belated or revised returns.

Why did the High Court order to extend the deadline

Actually, the Chamber of Tax Consultants had filed a Public Interest Litigation (PIL). It was said that there have been many changes in the procedure of ITR utility. Due to this, taxpayers are facing difficulty in claiming rebate under section 87A of the Income Tax Act, 1961. Therefore, an order should be given to extend the deadline.

What is belated ITR filing?

The facility of filing belated income tax return is for those taxpayers who for some reason miss filing ITR by 31 July. Belated return can be filed by paying penalty and interest on tax under section 139(4) of the Income Tax Act. Its deadline is usually December 31, 2024, which has now been ordered to be extended.

How much penalty has to be paid?

It depends on the annual income of the taxpayers. Taxpayers whose annual income is more than Rs 5 lakh have to pay a penalty of Rs 5,000. At the same time, those with income less than Rs 5 lakh have to pay a penalty of Rs 1,000. After the Bombay High Court extended the deadline, now taxpayers can file belated returns till January 15, 2025.

How to file belated ITR return?

• Visit the e-filing portal (https://eportal.incometax.gov.in/iec/foservices/#/login) of the Income Tax Department site.
• Log in to the e-Filing Portal using your PAN number.
• Select the correct ITR form according to your income source.
• Now select Assessment Year 2024-25 for FY2023-24.
• Give details of income, tax deduction and dues etc. here.
• Now pay the outstanding interest and penalty and submit the form.

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These messages are being sent specifically in cases where there is a discrepancy in the transaction information recorded in the AIS and the income declared in the ITR for the financial years 2023-24 and 2021-22.

The Central Board of Direct Taxes (CBDT) said in its statement that it has launched a special campaign to resolve the difference between the income and transactions recorded in the AIS and the information given in the ITR. Through this campaign, those persons have also been identified whose taxable income or large value transactions are recorded in the AIS but they have not filed ITR for the relevant financial year.

Notification through e-mail and SMS

This initiative is being taken under the implementation of E-Verification Scheme, 2021. Under this campaign, informative SMS and e-mails are being sent to the taxpayers to help them overcome the difference between the information recorded in ITR and AIS. AIS presents a detailed statement of the taxpayer’s financial information, which the taxpayer can view on the Income Tax Department portal and respond as required.

As part of implementation of the e-Verification Scheme, 2021 , CBDT has launched an e-campaign to assist taxpayers in resolving mismatches between the income and transactions reported in the AIS and those disclosed in ITRs for the F.Y 2023-24 and 2021-22.

Key highlights:… pic.twitter.com/ia56ooVKNG

— Income Tax India (@IncomeTaxIndia) December 17, 2024

CBDT said that the objective of this campaign is to remind and guide those taxpayers who have not correctly disclosed their entire income in ITR. Under this, taxpayers can file revised ITR for the financial year 2023-24 till 31 December 2024.

At the same time, in cases related to the financial year 2021-22, taxpayers have the facility to file updated ITR till March 31, 2025. It is worth noting that last month also CBDT had launched a special campaign in which messages were sent to those taxpayers who had not made high-value disclosure of foreign income or assets in ITR for assessment year 2024-25.

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What could be the harm?

If you do not tell the Income Tax Department about your foreign assets or income, then legal action can be taken against you. Under this, you may have to pay a fine of up to Rs 10 lakh for hiding information and in some circumstances you may also have to go to jail.

The Income Tax Department has all the information

The Income Tax Department has clarified that it has detailed information about people’s foreign assets and earnings. The Income Tax Department has information about financial accounts in many countries that belong to Indians. In such a situation, the Income Tax Department has warned and clarified that there will be no benefit in hiding it. In some cases, legal action can be taken considering it as black money.

There is information about account number and balance!

According to the Income Tax Department, it has information about the name, address and tax identification number (TIN) of the account holders. Along with knowing the account number, the Income Tax Department also has information about the balance of that account. The Income Tax Department also has information about income like interest and dividend.

Income tax department gets help

All this information helps the Income Tax Department to know about the global income of its taxpayers. It also helps in identifying those taxpayers who have hidden or not disclosed the information about their foreign assets or income.

What will happen after the last date?

If anyone does not inform the Income Tax Department about his foreign assets or income even by this deadline i.e. 31 December, then legal action can be taken against him. Under this, you can be fined up to Rs 10 lakh. In some serious cases, you may also have to go to jail.

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Its purpose is to help such people who are not able to give information about their income and expenditure correctly. The statement said that such people have been included in the campaign, whose taxable income or important high value transactions are recorded in AIS. But they have not filed ITR for the relevant years.

People will get the correct information through the campaign

The government has information related to people’s income and expenditure, which is called ‘Annual Information Statement’ (AIS). If people have not given correct information in their Income Tax Return (ITR), then this campaign will give them information about it and they will be able to correct it. This campaign will also focus on those people who have earned a lot of money but have not paid tax. In this way, the government is encouraging people to follow the rules of paying tax.

Information will be given through SMS and email

The statement said that the campaign also includes those people whose taxable income or important high-value transactions are recorded in AIS. But they have not filed ITR for the respective years. This initiative is part of the execution of e-Verification Scheme, 2021. As part of this campaign, taxpayers and non-filers will be informed through SMS and email where differences have been identified between the transactions recorded in AIS and the ITR filed.

Purpose to remind and guide people

According to the statement of CBDT, the purpose of these messages is to remind and guide people who have not fully disclosed their income in their ITR. So that they can take advantage of this opportunity and file revised or delayed ITR for 2023-24. The last date for filing revised delayed ITR is 31 December 2024. Tax payers can file updated ITR till 31 March 2025 for matters related to the financial year 2021-22.

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In such a situation, taxpayers may wonder if they can make this payment on 16 December 2024 i.e. Monday? If the income tax liability of the taxpayers is more than Rs 10,000, then it is mandatory to pay advance tax. If the payment is not made on time, taxpayers may have to face penalty and interest.

Income tax department rules

According to the Income Tax Department’s circular dated 14 January 1994, if the last date for advance tax payment falls on a public holiday or Sunday and the bank is closed on that day, then the taxpayer gets the next working day for payment. In this case, no penalty or interest will be levied on the taxpayer under Section 234B and 234C of the Income Tax Act 1961.

Can you pay advance tax on 16 December without penalty?

The third installment payment for the financial year 2024-25 can be made on Monday, 16 December 2024, as 15 December is a Sunday. In this case, no penalty or interest will be levied on taxpayers. Taxpayers can pay their third installment of advance tax on December 16 without any worry.

Advance tax: Payment is made in four installments

Advance tax has to be paid in four installments in the same financial year in which the income is earned.

15% – till 15 June

45% – By September 15 (includes 1st instalment)

75% – By 15th December (includes 1st and 2nd instalment)

100% – by 15 March

Who has to pay advance tax?

If you still have a tax liability of Rs 10,000 or more after deducting TDS on your income, then you will have to pay advance tax. Apart from salary, this also includes income from rent, capital gains, FD interest, or lottery winnings.

What will happen if advance tax is not paid?

If you do not pay advance tax or pay it late, you will have to pay a penalty as per section 234B and 234C under the Income Tax Department. The rate of this penalty is 1% per month.

Section 234B: If you have not paid 90% of the total tax by March 31, then you will have to pay interest at the rate of 1% per month.

Section 234C: Interest will be charged at the rate of 1% per month for four installments at different times. Hence, it is very important to pay the advance tax on time to avoid additional penalty.

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What is PAN 2.0?

PAN 2.0 is the latest and safe version of the existing PAN. Many new changes have been made in it.

Digital Integration

Like Aadhaar, PAN 2.0 will also be linked to multiple platforms, making identity verification easier.

You will get PAN immediately

Now the process of issuing PAN will be fast and real-time. Till now it takes 10 to 15 days for the physical PAN to arrive. It takes a minimum of 3 days for the e-PAN to arrive in the email.

Strong link with Aadhaar

Linking of Aadhaar and PAN will be further strengthened to prevent misuse of PAN.

Biometric security : Biometric data is likely to be added to the new PAN, making it even more secure.

PAN 2.0 will have better and updated features than before.

Taxpayers and common citizens will benefit from PAN 2.0

PAN 2.0 can be used like Aadhaar for all purposes like opening a bank account, investing and tax filing.

PAN 2.0 will curb fraud. Biometric and Aadhaar integration will prevent identity theft and misuse of PAN.

PAN 2.0 will make tax filing easier. Filing your income tax return (ITR) will be faster and error-free than before.

Considering the financial needs, this will be the only document for all the work.

Benefits for businessmen

PAN registration will be faster for works like GST, corporate bank account and government tenders.

It will reduce tax evasion due to better tracking system. KYC process will be faster and easier due to biometric features.

Will existing PAN holders have to apply for the new PAN 2.0?

Existing PAN holders do not need to apply afresh for PAN 2.0. Their existing PAN will also remain valid. A new PAN will be issued only in case of correction or update.

However, along with the benefits, PAN 2.0 will also have some challenges.

Keeping biometric data safe will be a priority. It will be a challenge to implement the new system in rural areas and areas lacking technical facilities.

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If you want to avoid penalty, then definitely finish your work before these tax related deadlines. If you are an individual, business or part of a government office, then keep in mind the tax calendar of December 2024. So that there is no problem in the new year.

The financial year in India runs from 1 April to 31 March. The calendar year runs from 1 January to 31 December. It is important to take advantage of the December deadline to avail tax benefits and deductions by 31 December. By keeping the correct dates in mind and keeping an eye on the timeline of filing your returns, you can avoid penalties, fines and hassles. Here’s what taxpayers need to complete before 31 December.

Income tax deadline in December 2024

7 December 2024

The last date for depositing the tax deducted or collected is November 2024. However, in case of tax paid without presenting the challan to the government office, it is mandatory to deposit it on the same day.

15 December 2024

Last date for submission of Form 24G – This is for reporting TDS/TCS paid by government offices without challan in November 2024.

• Advance tax payment of third installment for assessment year 2025-26.
• Last date for issue of TDS deducted certificate in October 2024:
• Section 194-IA – TDS on immovable property
• Section 194-IB – (TDS on rent)
• Section 194M – (TDS on non-professional contract services)
• Last date for submission of Form 3BB – This is for providing revised client code in transactions with stock exchanges.
• Last date for issuance of TDS certificate under section 194S ( TDS on virtual digital assets of certain persons) for October 2024.

30 December 2024

Last date for submission of Challan-cum-Statement – Details of tax deducted under sections 194-IA, 194-IB, 194M and 194S for November 2024.

Form 3CEAD Report – Last date for filing of report for reporting year 2023 (1 January 2023 to 31 December 2023) for Indian resident international group, if the parent entity of the group is not located in a country with an agreement with India.

31 December 2024

Last date for filing belated or revised income tax return – This date is for assessment year 2024-25 for all taxpayers, provided the assessment is not completed before December 31, 2024.

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This decision of the government will help taxpayers avoid penalty for late filing of ITR. The due date for filing income tax return under section 139(1) of the Income Tax Act, 1961 is November 30 in the case of such taxpayers who are required to submit the report referred to in section 92E.

Extension of time limit for assessment year

In an official order issued by the Income Tax Department, it has been said that the Central Board of Direct Taxes (CBDT) has now extended the deadline for assessment year 2024-25 to December 15, 2024. CBDT has said that the deadline for filing income tax returns has been extended for those taxpayers.

Those who have undertaken international transactions are required to submit reports under section 92E. The extension of the deadline for filing ITR will mostly apply to entities participating in international or certain domestic transactions.

Strong economic financial position of the government

According to the official data released recently, the fiscal deficit of the Center at the end of the first seven months (April-October) of the current financial year was 46.5 percent of the full year target. This reflects the strong economic financial position of the government. The government aims to bring down the fiscal deficit to 4.9 percent of the gross domestic product (GDP) in the current financial year, from 5.6 percent in 2023-24.

According to data released by the Controller General of Accounts (CGA), the overall fiscal deficit, the difference between government expenditure and revenue, stood at Rs 7,50,824 crore during April-October this year. The revenue-expenditure data of the central government for the first seven months of 2024-25 showed that the net tax revenue was around Rs 13 lakh crore and 50.5 per cent of the budget estimate of the current financial year.

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The purpose of this decision of the government is to use PAN as the main identifier in all digital systems of government agencies. The government will spend a total of Rs 1435 crore on this project.

PAN with QR code will be issued free of cost

The PAN 2.0 project will help bring about a big change in the registration services of taxpayers through technology. Taxpayers will get many types of benefits. In which they will be able to access the services easily, the delivery of services can be accelerated, the quality will improve, all the information will be available in one place, data will be safe, eco-friendly process will help in reducing costs. PAN will be used as a common identifier for the digital system of government agencies, which also matches the government’s vision of Digital India. Information and Broadcasting Minister Ashwini Vaishnav said that in the PAN 2.0 project, a new PAN card with QR code will be issued free of cost to the taxpayers.

78 crore PANs have been issued

The PAN 2.0 project is an e-governance project to redesign the business process of registration services for taxpayers through technology-driven transformation of PAN/TAN services for a better digital experience of taxpayers. The government said in its statement that it will be an advanced form of the existing PAN/TAN 1.0 framework which will also integrate PAN verification service with core and non-core PAN/TAN activities. So far, about 78 crore PANs have been issued in the country, out of which 98 percent PANs have been issued at the individual level.

What is PAN?

PAN number is a 10 digit alphanumeric identity card issued by the Income Tax Department. This card is issued to any person who applies for a PAN card. Through the PAN number, Income Tax keeps an eye on any person’s online or financial transactions. Also, PAN is the most important identity card for doing all types of financial transactions in the country, just like Voter ID is for voting.

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If someone does not tell the Income Tax Department about his foreign assets or income even by this deadline, then it is possible that he may have to face serious consequences.

What could be the harm?

If you do not tell the Income Tax Department about your foreign assets or income, then legal action can be taken against you. Under this, you may have to pay a fine of up to Rs 10 lakh for hiding information and in some circumstances you may also have to go to jail.

The Income Tax Department has all the information

The Income Tax Department has clarified that it has detailed information about people’s foreign assets and earnings. The Income Tax Department has information about financial accounts in many countries that belong to Indians. In such a situation, the Income Tax Department has warned and clarified that there will be no benefit in hiding it. In some cases, legal action can be taken considering it as black money.

According to the Income Tax Department, it has information about the name, address and tax identification number (TIN) of the account holders. Along with knowing the account number, the Income Tax Department also has information about the balance of that account. The Income Tax Department also has information about income like interest and dividend.

All this information helps the Income Tax Department to know about the global income of its taxpayers. It also helps in identifying those taxpayers who have hidden or not disclosed the information about their foreign assets or income.

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The Central Board of Direct Taxes (CBDT) has launched a compliance-cum-awareness campaign for Assessment Year (AY) 2024-25 to enable taxpayers to correctly fill the schedule ‘Foreign Assets’ (Schedule FA) in their Income Tax Returns (ITR) and disclose income from foreign sources (Schedule FSI).

Information will be given through SMS

The CBDT said in a statement that the informative messages will be sent via SMS and email to resident taxpayers who have already submitted their ITR for the assessment year 2024-25. The board said that these messages are for persons identified through information received under bilateral and multilateral agreements. This information shows that these persons may have foreign accounts or assets, or it is possible that they have income from abroad.

It is aimed at reminding and guiding those who have not properly completed the Schedule Foreign Assets in their submitted ITR for the assessment year 2024-25, especially in cases involving high value foreign assets.

This initiative is in line with the vision of a developed India and highlights the Income Tax Department’s commitment to use technology to simplify taxpayer compliance and reduce human intervention. By leveraging data obtained through Automated Exchange of Information (AEOI), the Income Tax Department is working to create a more efficient and taxpayer-friendly system.

The CBDT hopes that all eligible taxpayers will avail this opportunity to fulfil their tax responsibilities and contribute to the economic development of the country. This effort is not only in line with the Government’s vision for a developed India but also promotes a culture of transparency, accountability and voluntary compliance.

For detailed, step-by-step guidance on how to complete Schedule Foreign Assets, taxpayers should visit the official website of the Income Tax Department www.incometax.gov.in where resources and support are available to help them.

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In this form, businessmen have to provide information about their sales and purchases for the whole year and also have to provide the details of GST paid during that financial year to the government. The last date for filing GST Annual Return is 31 December 2024.

Taxpayers who have opted for the composition scheme under GST are required to file Form GSTR-9A to file their annual returns. Taxpayers are required to file all the applicable returns for that financial year such as Form GSTR-1/ IFF and Form GSTR-3B before filing their annual returns.

Which taxpayers are required to file GST annual return 

Filing of annual GST returns is mandatory for all taxpayers who have taken GST registration during the relevant financial year, irrespective of the time of registration. And taxpayers who opt for the Composition Scheme under GST are required to use the GSTR-9A form to file annual returns.

These taxpayers will not have to file returns

The specific categories of taxpayers who have been exempted by the government from filing GST annual returns include-

• Input Service Distributor
• Taxpayers paying tax under section 51 of the CGST Act
• Taxpayers paying tax under section 52 of the CGST Act
• Taxpayers paying casual tax
• Non-resident tax payers

It is not necessary for these traders to file annual returns

For your information, let us tell you that the Central Board of Indirect Taxes and Customs (CBIC) has exempted GST registered small traders from filing annual GST returns for the financial year 2023-24. Such GST registered businessmen whose total turnover is up to Rs 2 crore in the financial year 2023-24, will not have to file annual returns for that year.

How many types of GSTR-9 forms are there?

Under the Goods and Services Tax system applicable in India, the GSTR 9 form has been divided into four types according to different categories of businessmen.

1. GSTR-9 Form: This form is for general traders registered under GST.

2. GSTR-9A Form: For taxpayers who opt for the composition scheme under GST, there is the GSTR-9A form.

3. GSTR-9B Form: GSTR-9B form is used for e-commerce operators.

4. GSTR-9C Form: GSTR-9C form is for those businessmen whose annual turnover is more than Rs 2 crore.

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Under Section 220(2A) of the Income Tax Act, if a taxpayer fails to pay the amount of tax specified in a demand notice, he is required to pay interest at the rate of one per cent per month for the period of delay in making the payment.

The Act also empowers the Principal Chief Commissioner (PRCCIT) or Chief Commissioner (CCIT) or Principal Commissioner (PRCIT) or Commissioner rank officers to reduce or waive the amount of interest payable.

The Central Board of Direct Taxes (CBDT) through a circular issued on November 4 has specified the monetary limit of interest that tax authorities can waive or reduce.

Accordingly, a PRCIT rank officer can decide to reduce or waive the outstanding interest of more than Rs 1.5 crore. For outstanding interest from Rs 50 lakh to Rs 1.5 crore, a CCIT rank officer will decide on exemption/deduction, while a PRCIT or Income Tax Commissioner can decide on outstanding interest up to Rs 50 lakh.

On the other hand, under section 220(2A), the interest payable can be reduced or waived if three specified conditions are fulfilled. These conditions are, the payment of such amount has caused or would cause genuine hardship to the taxpayer; the default in paying interest was due to circumstances beyond the control of the taxpayer; the taxpayer has cooperated in the investigation related to the tax assessment or in the proceedings for the recovery of any amount due from him.

Nangia & Co LLP Partner Sachin Garg said, “This move by the CBDT is expected to help in speedy disposal of applications made by taxpayers for waiver or reduction of interest under section 220. It is worth noting that there is no change in the specified conditions that are required to be fulfilled for seeking such reduction or waiver of interest under section 220 of the Act.”

AMRG & Associates senior partner Rajat Mohan said the move would promote transparency and efficiency in providing interest relief.

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It is mandatory to file income tax returns on time. If this is not done, one has to face legal problems. Now the government has given a big relief to the corporates and extended the deadline for filing ITR for them by 15 days to November 15. This information has been given by the Income Tax Department. The Central Board of Direct Taxes (CBDT) on Saturday extended the deadline for corporates to file ITR for the financial year (FY) 2023-24 i.e. asset year (AY) 2024-25. This year corporates can file till November 15 instead of October 31.

Earlier the deadline for filing tax audit report was extended

This extension in ITR filing will apply to taxpayers covered under sub-section (1) of section 139 of the Income Tax Act, 1961. Earlier, the government had extended the deadline for submitting tax audit report from the initial deadline of 30 September 2024 to 7 October 2024. Under the Income Tax Act, certain taxpayers are required to get their income tax audit done and its report has to be filed by 30 September in the assessment year.

They will not get the benefit of deadline extension

Talking to news agency PTI, Sandeep Jhunjhunwala, tax partner of Nangia Andersen, said that the deadline for filing ITR has not been extended for those for whom transfer pricing provisions and audit will be applicable. There will be no extension in the case of tax audit under section 44AB and transfer pricing under section 92CE and taxpayers will have to file ITR by October 31.

According to Sandeep Jhunjhunwala, this deadline has been extended so that corporates get more time and they can easily file ITR. Rajat Mohan, senior partner of AMRG & Associates, says that no official reason has been given for extending the deadline, but one reason for this could be the festive season so that one does not have to face the problem of filing ITR during the festive season.

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There is going to be a big change in the e-filing ITR portal for filing income tax returns. This will be more convenient for taxpayers. According to the Economic Times report, an internal circular from the department has revealed that a new ITR e-filing portal IEC 3.0 will be launched soon. The process for this has already started. According to the internal circular, the operation phase of the existing Integrated e-filing and Centralized Processing Center (IEC) 2.0 is ending. With this, IEC 3.0 will replace it as a new project. Let’s know about it.

What is IEC project?

The IEC project offers an e-filing platform. It allows taxpayers to electronically file their ITR, submit regular forms and access a number of other services. An important part of the IEC project is the Centralized Processing Center (CPC). It takes up the responsibility of processing the ITR filed with the help of the e-filing portal and ITBA. In addition, IEC also provides a back-office (BO) portal. Through this, field officers can access taxpayer filing and processing data.

How will IEC 3.0 help?

The internal circular states that the goal of Project IEC 3.0 is not just to continue the services provided by Project IEC 2.0. But to establish a much better system. Necessary improvements are to be made in the processing of ITR. New technology is to be used to speed up the processing of ITR with the new system, so that taxpayers can get quick refunds. Apart from this, it can reduce the shortcomings and complaints of IEC 2.0.

What will be the benefit?

Chartered Accountant Ashish Neeraj says that the change from IEC 2.0 to IEC 3.0 can bring a more user-friendly experience for taxpayers. Strict data quality checks should be implemented in IEC 3.0. In IEC 2.0, taxpayers and professionals faced problems in downloading ITR forms, downloading 26AS, server related problems, problems in challan payment etc. last year, which can be improved in IEC 3.0. The internal circular states that Project IEC 3.0 will have a huge impact on the functioning of the department and the general public in the coming years. Therefore, it is important for the Income Tax Department to take opinions and suggestions to make the IEC 3.0 project user friendly.

Why is it necessary to upgrade?

Hardik Kakadiya, president of Chartered Accountants Association, Surat (CAAS), says that no e-commerce platform crashes during festive sale offers. On the other hand, problems keep coming in the ITR e-filing portal. A petition has already been filed by CAAS in the Gujarat High Court regarding the problems in the Income Tax portal. Therefore, if prudence is used and the portal is upgraded on time, not only difficulties can be prevented, but many litigations can also be avoided.

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This scheme was announced by Finance Minister Nirmala Sitharaman in the Union Budget presented in July . Taxpayers whose tax cases are pending from July 1, 2017 to March 31, 2020 will be able to avail the benefits of this scheme. Taxpayers can settle their cases by paying less interest and penalty under this scheme.

Relief will be given only in interest and penalty amount

Taxpayers who have received a notice or order under section 73 (except in cases of fraud) can avail the benefit of this scheme in case of such orders. It is important for taxpayers to understand that under this scheme they will get relief only in the amount of interest and penalty. They will have to pay the tax demand amount. For this amnesty scheme, the government had included section 128A in the Finance Bill. Under this, there is a provision to give relief to taxpayers in the interest and penalty amount in case of notice sent under section 73.

Taxpayers who make mistakes unknowingly will benefit

Chartered accountants say that this amnesty scheme of the government is welcome. The reason for this is that when the GST system was implemented from July 1, 2017, many businesses were not well aware of the new rules. Due to this, mistakes were made in filing returns on their part. After this, notices were sent to them by the GST authorities. This is the reason why it has been decided to provide relief in this amnesty scheme only in cases related to the period from FY18 to FY20.

The number of pending cases will decrease

The government believes that this amnesty scheme will provide relief to a large number of taxpayers. It will also reduce the number of appeal cases in tribunals and courts. Currently, a large number of such cases are pending in tribunals and courts. Due to this, businesses are facing a lot of problems. Such businesses will be able to settle their cases by paying less interest and penalty.

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Therefore, it is important to understand the circumstances under which you can be sent an income tax notice and it is equally important to understand the reason behind sending the notice. This will help you respond to such a notice when you receive it.

Although taxpayers may receive several types of income tax notices, not all of them apply to individuals. Here are some of the tax notices that a salaried individual may receive if errors are found in their ITR:

Section 143(1)(a) tax notice

This tax notice is called Intimation Notice (Intimation Under Section 143(1) of Income Tax Act ) and is sent when the tax department has successfully processed the ITR submitted by the taxpayer. This intimation notice will indicate whether the calculations submitted in the ITR have been accepted by the income tax department or not. If there is any difference between the calculations filed by you in the return and the calculations made by the tax department, the reason for the same will also be mentioned in the intimation notice.

Possible reasons behind receiving 143(1) mismatch intimation notice: Such intimations can be issued in case of ITRs filed under section 139(1)/139(5) as well as ITRs filed in response to a notice issued under section 142(1). A taxpayer may receive a mismatch intimation notice due to reasons such as difference between the income calculated as per the ITR filed by the taxpayer and the income calculated as per section 143(1), arithmetical errors, any incorrect claim, incorrect calculation of interest under section 234A/B/C, mismatch of tax return details when compared with Form 26AS, etc.

Time limit to respond to such notices: You need to take action only if there is a difference between your ITR calculation and the tax department’s calculation. If the intimation notice is issued on account of refund or there is no mismatch between your ITR calculation and the tax department’s, you need not respond to the intimation. Taxpayers receiving an intimation under section 143(1)(a) are required to file their response within 30 days from the date of issue of the intimation.

2. Defective Notice Under Section 139(9)

The Income Tax Department can send you this notice under section 139(9) due to incomplete or incorrect information given in the ITR you have filed. ITR can be considered defective due to many reasons. For example, using the wrong ITR form to file ITR.

Some of the common reasons for getting a Defective Return Notice include: Claiming HRA in ITR but not having any HRA component in the salary breakup, claiming TDS on income while filing ITR but not reporting the relevant income. For example, not declaring FD interest in ITR but claiming TDS deducted on such FD.

Till when can defective ITR notice be issued?

This notice can be issued within nine months from the end of the financial year in which the ITR is filed. For ITRs filed for financial year 2023-24, the defective ITR notice can be issued on or before December 31, 2025.

Time limit to respond to defective ITR notice: “If your return is found to be defective, you will have 15 days from the date of receipt of the notice or the time limit mentioned in the notice to rectify the defect in your filed return. However, you can request for an extension of the same.

3. Notice under Section 142(1) of Income Tax Act

This tax notice is also known as inquiry before assessment or reassessment notice. If no ITR has been filed under section 139(1), a notice can be issued to the person to file ITR under section 142(1).

Possible reasons behind this notice: The reason behind issuing this notice is that the tax department wants clarification on why you did not file ITR despite having proof of income above the basic exemption limit. You have to answer all the questions asked by the income tax department and provide the necessary details and documents to support the claims made in your filed ITR. There is no time limit for issuing such a notice.

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Time limit to respond to the notice: Taxpayers have to respond to the notice within the time limit given in the notice which is usually 15 days.

4. Section 143 (2):

This notice is known as scrutiny assessment notice. This notice is sent when the tax department wants to make a detailed assessment of the filed ITR and wants to verify the genuineness of all the claims (income and deductions) made by you.

Possible reasons behind this notice: A notice under section 143(2) may be issued to a taxpayer for the purpose of conducting a scrutiny assessment under section 143(3). Scrutiny assessment is a detail assessment made to verify the genuineness of various claims, deductions, etc. made in the ITR submitted by the taxpayer.

Time limit to respond: Usually 15 days are given to respond to such a notice, however, the time limit to respond to such a notice is given in the notice itself. On receiving this notice, you have to submit your response by uploading the required documents.

5. Section 148:

This notice is sent when there is any income that escapes assessment. This notice is issued when the assessing officer (AO) has any evidence that shows that the taxpayer’s income has escaped assessment in the previous year. The tax department issues a notice under section 148 before issuing a show cause notice under 148A (b) to ask why this case should not be selected for re-assessment.

After receiving the response from the taxpayer or if there is no response from the taxpayer, the income tax department passes its order under section 148A(d), stating whether it is a fit case for reassessment or not.

Till when such notice can be issued : Notice under section 148 can be issued within 3 years and 3 months from the end of the relevant assessment year, if the income escaped assessment does not exceed Rs 50 lakh. However, if the income escaped assessment exceeds Rs 50 lakh, reassessment can be done for 5 years and 3 months for the relevant assessment year.

Time limit to respond: The taxpayer has to respond to the notice within the time limit given in the notice which is generally 30 days.

6. Section 245:

Under this section, the income tax department can set off income tax refund from the current year against any tax dues of a previous year. This adjustment is made only if income tax dues or tax refund is due in the current year.

Possible reasons behind this notice: If you have any pending tax from the previous year which you have not settled or paid, then you can be sent this notice.
When can this notice be issued: There is no time limit for sending this notice.

Time limit to respond: The intimation notice has a time limit, which is usually 30 days. If you have any objection to this notice, or you have already paid the pending tax amount, then also provide proof of tax payment in your response.

Apart from this, some other notices that taxpayers can get include…

Section 154:

If any mistake is found in the claims made in the return after the acceptance of ITR by the Income Tax Authority, then the Income Tax Authority can issue a notice under section 154 to rectify these mistakes.

Section 263:

If the Commissioner of Income-tax (CIT) finds that any order passed by his subordinate officer is erroneous, and is detrimental to the interest of the government, then within 12 months from the end of the year in which the erroneous order was passed, the CIT can issue a notice under section 263 to modify the order passed by his subordinate officer.

Section 131 (1A):

If the Principal Director General, Director General, Principal Director, Director, Assistant Director, Deputy Director etc. have any reason to suspect that income has been concealed, then a notice is issued under section 131 (1A). The taxpayer has to file his reply within the time limit given in the notice, which is usually 30 days.

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Disputes continue in various legal forums over 2.7 crore direct tax demands amounting to about Rs 35 lakh crore. Finance Minister Nirmala Sitharaman had said in her budget speech that the government will continue its efforts to simplify taxes, improve taxpayer services, provide tax certainty and reduce litigation while increasing revenue.

The government had introduced the first phase of the ‘Vivaad se Vishwas’ scheme for cases under direct taxes in 2020. About one lakh taxpayers took advantage of this scheme and the government got a tax of about Rs 75,000 crore.

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Refunds come within about a month of filing ITR. If your refund is also due and you have not received it yet, there can be many reasons behind it. It is possible that you have not filed ITR correctly. Keep in mind that refund is available only when the Income Tax Department processes your ITR and sends you a notice confirming it. This notice is issued under Section 143(1) of the Income Tax Act, 1961.

The amount is deposited directly in the account

After the entire process is completed, the refund amount issued by the Income Tax Department is deposited directly in the taxpayer’s bank account. However, this amount goes to the same bank account which is linked to the taxpayer’s account on the Income Tax website. In such a situation, it is important that the bank account number and IFS code (IFSC) are filled correctly. Go to the Income Tax Department website and login to your account and check whether the bank account details are correct or not.

How many days does it take to get a refund?

To get a refund, it is necessary to verify your tax return online. Usually, it takes 4 to 5 weeks for the refund to be credited to your account. If you have not received the refund within this time, then email the income tax department and get information about it. Apart from this, you can also track the status of your refund by visiting the e-filing website.

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These can be 5 reasons for not getting refund

1. If your PAN is inactive, then you will not get a refund. In such a case, you will see a warning message to link your PAN with Aadhaar.

2. If the bank account details are wrongly entered in your account on the Income Tax website, then also you will not get a refund. In such a case, check all the bank related details like account number, IFSC code, name etc. once again.

3. If your bank account registered in the Income Tax website is closed or suspended due to KYC or any other reason, then also the refund amount will not come in the bank account.

4. If the bank account you have given to the Income Tax Department is different from the savings account or current account, then also the refund amount will not come in the account.

5. Income Tax found in the investigation that there is a mistake in the return you had filed. For correction in this, the department had also sent you an email on the registered email ID, but you did not pay attention to it. Unless the correct return is filed, refund will not be given.

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The post ITR Refund: Haven’t received refund yet after filing ITR? Know the 5 reasons why it may be stuck, check now first appeared on Rightsofemployees.com.

According to the department, such fake calls and pop-up notifications talk about availing tax refund. The IT Department has said in its advisory that if any taxpayer receives any such fake message, then that message must be officially verified from the IT Department.

What information did the department provide

The department informed in an official post on X that do not respond to emails or visit websites that request credit card numbers, bank account details or any other sensitive information. The Income Tax Department can contact taxpayers from the given email address.

The IT department said on X that the fake message may be like this: You have been approved an income tax refund of Rs 15000 / -, the amount will be deposited in your account soon. Please verify your account number 5XXXXX6777. If it is not correct, please update your bank account information by visiting the link given below.

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Send such emails and messages here

The IT department has asked taxpayers to send such fake-fraudulent messages and emails to the department’s official website. If you receive an email that you think is fraudulent, you have to send it to webmanager@incometax.gov.in. A copy of this can also be sent to incident@cert-in.org.in. The tax department said that if you receive a phishing mail, send it to incident@cert-in.org.in. The IT department has warned taxpayers not to respond to fake emails or mails from anyone claiming to be from the tax department or open attachments.

ऑनलाइन धोखाधड़ी से सावधान रहें pic.twitter.com/UtGD7QAWLG

— Income Tax Mumbai (@IncomeTaxMum) August 15, 2024

Income Tax Refund

Income tax refund is the refund amount that the income tax department gives back when the amount of tax paid is more than the actual amount. The income tax refund process starts after the taxpayers e-verify the return. Usually, it takes about 4 to 5 weeks for the refund to be credited to the bank account.

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However, there are some cases in which there will be no penalty for filing ITR even after the 31st date. If your income is completely tax exempt, then you will not have to pay any penalty for filing late ITR. There is also a condition in this that you should not have any other eligible source of income. Apart from this, taxpayers who are not required to file ITR under the law, they simply do so voluntarily. They will also not have to pay a penalty.

It is necessary for them to file ITR

. Let us tell you that it is mandatory for some taxpayers to file ITR, even if they do not have a source of income. People who have Rs 50 lakh in their savings account. Apart from this, those who get a turnover of Rs 60 lakh or more from the sale of their products. People who pay electricity bill of Rs 1 lakh or more in a financial year. Professionals whose income in a financial year is more than Rs 10 lakh. It is mandatory for these people to file ITR.

These people will also have to file ITR

Apart from the people mentioned above, it is mandatory for some other people to file ITR. People who have spent more than Rs 2 lakh on foreign travel. People whose TCS or TDS is above Rs 25000. People who have property abroad or those who get benefits from foreign property.

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Meanwhile, the department has asked those filing returns not to make fake claims for expenses and not to understate their income.

The department said that making exaggerated and fraudulent claims is a punishable offence and leads to delay in issuing refunds. The last date for filing ITR for assessment year 2024-25 for all taxpayers is July 31, after which the accounts will not be audited.

More than 5 crore ITRs have been filed so far

. According to the Income Tax Department and its administrative body Central Board of Direct Taxes (CBDT), more than 5 crore ITRs have been filed till July 26.

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Filing ITR correctly speeds up the refund process

The Income Tax Department recently said that taxpayers should file their returns correctly to get timely refunds. The department said, “Refund claims are subject to verification, which may cause delays. Filing ITR correctly speeds up the refund process. In case of any discrepancy in the claims made, a request for a revised return will be made.”

Avoid making false claims

The Income Tax Department has urged taxpayers filing ITR not to claim wrong TDS amounts, under-report their income or exaggerate deductions.

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If for any reason taxpayers are facing difficulty in filing returns, then they should use the consultancy services of a CA or tax expert. The reason for this is that taxpayers have to face problems after their income tax returns are rejected. Let us know what mistakes taxpayers should generally avoid.

1. Wrong information in the form

Taxpayers should not give any wrong information in the income tax form. They should not claim any deduction which they are not entitled to. Before submitting the form, every information should be checked once or twice. Many times, due to calculation mistakes, wrong information is entered in the form, due to which the form gets rejected. It is also important for taxpayers to pay attention to using the correct form to file the return.

2. Difference in data of Form 16 and AIS

The Income Tax Department has many ways to keep an eye on every financial of the taxpayers. Annual Information Statement (AIS) is the most important among them. Similarly, the most important document for salaried taxpayers is Form-16. Before filing income tax return, it is important to understand the information given in Form 16 and AIS properly. This will reduce the chances of wrong information going into ITR. Taxpayers are advised to match the data of Form 16 and AIS.

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3. Not submitting the form by the deadline

It is necessary to submit the ITR form before the last date of filing ITR. Usually, taxpayers fill the ITR form in advance but they do not submit it. If the form is not submitted on time due to some reason, their return may get rejected. After the form is rejected, the return will have to be filed again with a penalty.

4. Mistake in tax calculation

There is a possibility of ITR being rejected even if there is a mistake in the calculation of tax liability. Therefore, before filing the return, taxpayers should calculate their tax liability correctly. They should calculate the deduction, exemption and tax rate correctly. If any kind of problem is faced, then advice of a tax expert can be taken.

5. Not verifying the form

After submitting the income tax return, it is necessary to verify it. There are many ways to verify it. It can be verified through OTP from Aadhaar. It can be verified using netbanking. ITR-V form can be signed and sent to the Central Processing Center in Bangalore. If you file ITR and forget to verify it, then your return will be considered invalid. There is a deadline to verify ITR.

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Aadarsh ​​Kumar, who works in a multinational company in Mumbai, is very happy with his Chartered Accountant (CA). Why shouldn’t he be happy, because his CA has got him a refund of Rs 50,000. When Aadarsh ​​told this to his friend, he also requested Aadarsh’s CA to file his income tax return. Aadarsh’s CA helped him get the benefit of all kinds of deductions and got him a refund of Rs 50,000 despite TDS being deducted.

When Adarsh ​​told this to his friend, he also talked to some tax experts about this. Then he came to know that Adarsh’s CA was saving his tax by giving wrong information in deductions. In return, Adarsh’s CA also took 15 percent of the money received as refund. This may not happen only with Adarsh, but with many taxpayers. If the CA fills your ITR by giving wrong information to get his commission, then who will be responsible for this?

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The government had issued a notification.

The Income Tax Department had issued a notification in 2018 to clear the picture in such a case. The department had said that no document is required for filing ITR online. Obviously, the taxpayer must have kept the documents of whatever deduction he claims. It is the responsibility of the taxpayer to file the ITR correctly and on time. In such a situation, even if the CA makes any mistake, the responsibility will fall on the taxpayer.

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What to do if a mistake is made?

As a taxpayer, you must always be prepared to ensure that no wrong information is entered in your ITR form and no correct information is hidden. After filling the ITR, you should also match it once yourself. If you see any mistake and the deadline for filing the return has not yet passed, you can file a revised ITR within the stipulated time. This will also prevent your ITR from being rejected and you will be saved from paying late fees along with penalty.

What is the penalty for filing a wrong ITR?

If a refund is taken by giving wrong information while filing ITR, then the Income Tax Department can impose a heavy penalty on such taxpayers. The refund amount will be recovered along with penalty and interest. If the tax evasion is more than Rs 25 lakh, then the government can also impose a penalty of 100 to 300 percent and in serious cases, the taxpayer can also be jailed.

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Last year 8.18 crore ITRs were filed. That is, more than six crore taxpayers have not filed ITR yet. The Income Tax Department has asked taxpayers to file ITR as soon as possible to avoid last minute rush. Last time 18 lakh ITRs were filed in the last two days. Here we are telling you what documents are required to file ITR.

Form-16

Form-16 is the most important document for employed people. ITR is filed with its help. This document is given to any employee by his company. It contains complete information about the tax deducted from the employee’s salary and also the salary given. Information related to this is pre-filled in ITR. You have to confirm it.

Form 26AS

This form is issued by the Income Tax Department. It contains complete information about the tax imposed on the income of the taxpayers. It can be obtained from the Income Tax Department website by entering your PAN number. If you want, you can also compare your Form-16 and Form 26AS to see if the tax deduction is the same in both places or not.

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​Interest Income Certificate

If you have made an FD in a bank or post office or have deposited money in any other interest-bearing scheme, then it is necessary to keep a certificate of income from interest or a bank statement so that you can fill in the correct information while filing income tax return. You can get tax exemption on interest income up to Rs 10,000 under section 80TTA of the Income Tax Act.

Proof of tax saving

Many taxpayers make some tax saving investments to save tax. Those who are unable to provide these documents to their employer within the stipulated time need to provide proof of the same while filing income tax returns. This tax saving investment proof can be LIC premium receipt, PPF investment passbook, proof of ELSS, donation receipt and tuition fee receipt etc.

Medical insurance document

Under section 80D, you can claim tax exemption on health insurance premium up to Rs 25,000. These insurance policies can be for you, your spouse or children. If you are a senior citizen, you can get tax exemption on health insurance premium up to Rs 50,000. So keep the receipts of all these with you while filing income tax returns.

The post ITR Filing: These documents are required to file ITR, otherwise the work will get stuck! first appeared on Rightsofemployees.com.

ITR Filing: The deadline for filing income tax returns for the financial year 2023-24 and assessment year 2024-25 is approaching. You can file returns till July 31, 2024 without penalty. Taxpayers can easily file income tax returns on the income tax portal without any hassle. If you also have to pay tax while filing ITR, then you can use credit card for this.

There are many benefits of paying tax through credit card

Taxpayers can also pay their taxes through credit cards. The Income Tax Department has started this facility for the convenience of taxpayers. In this, you do not have to face the problems in bank transfer or cash transaction. Through this, you immediately receive a message of payment confirmation. Usually, it takes more time through check or bank transfer. Also, taxpayers can also get the benefit of reward points on the card on tax payment through credit card. If you also want to pay tax through credit card, then we are telling you its step by step process.

This is how you can pay tax through credit card

1. After filing ITR on the income tax portal, first of all you have to generate a challan for tax payment. This document will contain the tax payable amount and the serial number of the challan.
2. Next, you have to choose the option of ‘Pay Tax’. You will see many options for tax payment on the income tax portal. This also includes the credit card payment option.
3. Next, enter the challan details.
4. In this, you have to choose the credit card payment option.
5. Next, you have to enter the credit card related details like card number, expiry date and CVV code.
6. After making payment through credit card, you will receive a confirmation message.

Keep these things in mind while paying tax through credit card

Before making tax payment through credit card, definitely get information about credit card fees. Along with this, the interest charged on credit card is very high. In such a situation, make sure that after paying the tax, you can easily pay that bill. Otherwise, later you may have to pay high interest rate and penalty.

The post ITR Filing: Pay tax quickly through credit card, know its step by step process first appeared on Rightsofemployees.com.

Decision taken in the meeting

During its meeting on Saturday, the GST Council proposed a new optional facility with Form GSTR-1A, which enables taxpayers to amend and add additional details in Form GSTR-1 for a particular tax period. Remember to submit GSTR-1A before filing your GSTR-3B return for that tax period. Abhishek Jain, partner and head of indirect tax at KPMG, said allowing amendments in the information given in GSTR-1 will help in correcting minor errors and omissions before paying tax.

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GST stands for Goods and Services Tax and it is basically a one-stop shop for all taxes in India. It is a tax system that covers everything from start to finish and applies to a wide variety of goods and services. Depending on what you are buying, you have to pay GST at different levels ranging from 0% to 28%. The system was fully implemented in 2017.

What is GSTR-1 form?

The GSTR-1 form is basically a monthly or quarterly statement that has to be submitted by all regular and occasional registered taxpayers. It contains details of the goods and services sold by them. Basically, anyone who sells goods or services, except for certain specific types of taxpayers, has to fill this form on the GST portal.

What is GSTR-1 form?

The GSTR-1 form is basically a monthly or quarterly statement that has to be submitted by all regular and occasional registered taxpayers. It contains details of the goods and services sold by them. Basically, anyone who sells goods or services, except for certain specific types of taxpayers, has to fill this form on the GST portal.

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New Delhi. The last date for filing Income Tax Return (ITR) for the financial year 2024 is 31 July 2024. Salaried people and taxpayers are looking for ways to claim deductions in income tax. Apart from the limit of Rs 1.5 lakh under Section 80C, taxpayers can claim additional tax benefits using several other methods.

There are many sections and provisions in the Income Tax rules that can help taxpayers save their money. One such provision is given under Section 80DDB. Using this, people filing income tax returns can get income tax exemption on the money spent for the treatment of any serious illness of themselves or dependents.

ITR Filing 2024: You can save Rs 40,000

Taxpayers can claim an income tax deduction of Rs 40,000 in a financial year under Section 80DDB if they spend on the treatment of themselves or a dependent. This benefit is available for the treatment of critical illnesses such as neurological diseases, cancer, chronic renal failure, dementia, motor neuron disease, Parkinson’s disease and AIDS.

Also Read: Delhi Metro Phase-III services to start at 6:00 am on June 16. Check Details

This special benefit is given only to Indian citizens residing in India. A person can claim it if he has spent money on the treatment of his dependents spouse, children, parents and siblings. The deduction limit is Rs 40,000. In case of senior citizens, it is Rs 1 lakh.

This income tax deduction is applicable even if you have taken a health insurance policy and the money for the treatment is received from the insurance company. The amount of deduction is reduced by the amount received from the insurer or the amount paid by the employer for the treatment of the person.

For example, if a person spent Rs 80,000 on the treatment of a critical illness, he received Rs 30,000 from the insurance company. Under this section, he can claim a deduction of only Rs 10,000. Because the exemption limit in a financial year is Rs 40,000.

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How much tax will be deducted?

According to the rules of the Income Tax Department, if your Permanent Account Number (PAN) is not linked with biometric Aadhaar, then Tax Deduction at Source (TDS) will be deducted at double the applicable rate.

The department had also issued a circular last month. It said that if those people who have less TDS deducted from their accounts link their PAN and Aadhaar by May 31, they will not need to pay more TDS. Also, no action will be taken against them.

The Income Tax Department has posted on the social media platform X, ‘If you have not linked your PAN card with Aadhaar, please link it before 31 May. This will help you avoid additional tax deduction.’

Also Read: RBI Penalty on Bank: RBI imposed a fine of Rs 2 crore on these 2 banks, details here

Warning for banks, forex dealers too

In another post, the IT department has asked institutions like banks and forex dealers to file the Statement of Financial Transactions (SFT) before May 31. Otherwise, they can be fined. Through SFT, the Income Tax Department keeps an eye on the transactions of large amounts of money of a person.

The reporting entities that are required to file SFT returns with the tax authorities include foreign exchange dealers, banks, sub-registrars, NBFCs, post offices, bond/debenture issuers, mutual fund trustees, companies paying dividends or buying back shares.

Delay in filing SFT returns can attract a penalty of up to Rs 1,000 per day. Non-filing or filing of incorrect details can also attract a separate penalty.

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While filing Income Tax Return ( ITR ), taxpayers want to avail maximum exemptions. Although, the Income Tax Department gives tax exemption to the taxpayer on many schemes and allowances. Even a salaried person who pays rent for his residence can also avail the benefit of HRA deduction.

Let us tell you that salaried persons get house rent allowance (HRA) along with their salary. In such a situation, taxpayers claim HRA exemption, but many times the Income Tax Department rejects their claim.

In such a situation, the question arises as to how to claim HRA so that the claim is not rejected and which documents are mandatory while making the claim.

Also Read: New Rule from 1st June 2024 : Details you need to know

Before knowing how to claim HRA, let us tell you that the information about how much HRA an employee gets is given in the salary slip. Apart from this, the company also gives this information in the tax projection statement of its financial year.

HRA is a part of salary, so its information is in Part B of Form 16. Form 16 is issued by the company. It contains all the information of the employee like basic salary, TDS, HRA etc.

Is rent agreement and receipt necessary?

Rent Agreement is necessary for HRA claim. Apart from this, Rent Receipt is also important. Actually, the Rent Receipt shows that the employee has paid the rent as per the rent agreement.

For this reason, the taxpayer should keep both these documents safely. Sometimes the Income Tax Department orders to submit these documents due to some discrepancy.

In the absence of rent receipts, the claim can also be rejected by the department. In fact, many times taxpayers make rent agreements with their family members. In such cases, the department rejects the claim due to lack of rent receipts or proof of actual payment.

You can file a claim without a PAN card

PAN Card is issued by the Income Tax Department. As per the rules, if a person pays less than Rs 1 lakh as annual rent, then the landlord does not need a PAN Card.

At the same time, it is mandatory to provide the PAN details of the landlord for rent of more than Rs 1 lakh. If the tenant pays rent of more than Rs 6,00,000 annually, then TDS of 10 per cent is deducted from the monthly rent.

If the landlord does not have a PAN, then in such a situation the landlord has to give a written declaration. In this, the landlord has to give the name, address and other information. This information helps in verifying the rent receipt.

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The Central Board of Direct Taxes has issued a press release. According to this press release, the Income Tax Department has identified certain mismatches between the information received from third parties on interest and dividend income of taxpayers and the Income Tax Returns (ITR) filed by taxpayers.

Apart from this, the department said that many taxpayers have not yet filed ITR.

The Income Tax Department has provided the facility of on-screen function on the e-filing website (https://eportal.incometax.gov.in) for the taxpayers to give their feedback on this. Here readers can easily give feedback.

Currently, information related to financial years 2021-22 and 2022-23 is mismatched on the portal. As per the details available with the department, taxpayers are also being made aware through SMS and email.

How can taxpayers take advantage of this?

The department said that those taxpayers who are already registered on the e-filing website should log into their account. After this he can directly go to the compliance portal. Now all the information will be available under “e-Verification” tab.

If the taxpayer is not registered on the e-filing website, he/she must first register himself on the e-filing website. After this the taxpayers have to click on the “Register” button where they will get all the information.

After registration, the taxpayer can easily log in to the e-filing account. The compliance portal can then be used to view those mismatches.

Reconciliation of mismatched details will also be allowed in the on-screen facility. There is no need to submit any document for this. The Department informed that this is a proactive step taken by the Department to reach out to the taxpayers and provide them an opportunity to respond to the communication in a structured manner.

If the taxpayer has disclosed interest income in ITR under line item ‘Others’ in Schedule OS, he is not required to respond to the mismatch relating to interest income.

The press release issued by the department said that taxpayers who are unable to explain the mismatch may consider the option of furnishing income tax returns when eligible, so that any under-reporting of income can be corrected.

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One Nation One Income Tax: To impose indirect tax, GST was implemented in the country from July 1, 2017 on the basis of the principle of One Nation One Tax. Now only one tax GST is collected on goods and services. So is One Nation One Income Tax going to be implemented in the country now?

Actually the echo of this question has been heard in the Parliament. This question was asked by Finance Minister Nirmala Sitharaman in Rajya Sabha. In response to which the Finance Minister did not say anything directly but he told the House that he is ready to discuss this issue.

Confusion among taxpayers

During Question Hour in Rajya Sabha on 6 February 2024, BJD MP Sulta Dev asked that if One Nation One GST is prevalent in the country, then why One Nation One Income Tax is not being implemented? He said that at present both New Income Tax and Old Income Tax regime are in vogue, due to which there is a lot of confusion among the taxpayers.

The complications of a total of 3 to 54 crore taxpayers in the country who pay income tax have increased. He asked the Finance Minister when it would be simplified. It has been three years since the new income tax regime was implemented, so will One Nation One Income Tax be implemented?

Finance Minister ready for discussion

Finance Minister Sitharaman did not give any direct answer to this question. He said, this question is being asked that if One Nation One Tax can be implemented for indirect tax also, then why not for direct tax? The Finance Minister said, this is a very important issue on which I am ready to discuss.

New tax regime came in 2020-21

While presenting the budget on February 1, 2022, the Finance Minister announced the introduction of a new income tax regime which was implemented from the financial year 2020-21. When the new income tax was implemented, there was no benefit of deduction or tax exemption on savings or investments. There was no provision for tax exemption on home loan or mediclaim. Even the benefit of standard deduction of Rs 50,000 was not being given to the taxpayers.

Due to which taxpayers had to pay more tax under the new tax regime. But to make the new regime attractive, while presenting the budget for the financial year 2023-24 on February 1, 2023, the Finance Minister made major changes in the new income tax regime. In the new income tax regime,

taxpayers with income up to Rs 7 lakh do not have to pay tax, whereas in the old tax regime this limit is Rs 5 lakh. The benefit of standard deduction for salaried class and pensioners was included in the new regime. Now the new income tax regime has become the default tax regime.

Doesn’t encourage savings!

In fact, the old tax regime is very complex due to various types of tax exemptions and deductions, which is difficult for the taxpayers to understand and many times they give wrong information, after which they have to make rounds of the Income Tax Department and sometimes get into legal disputes.

also get trapped. Whereas due to the absence of this provision in the new income tax regime, taxpayers cannot give wrong information to get deduction. However, the old tax regime encourages taxpayers to invest and save taxes, which is not the case in the new income tax regime.

Demand has been rising for the first time too

The issue of One National One Income Tax has been raised in Parliament but it is being discussed for a long time. Bibek Debroy, Chairman of the Prime Minister’s Economic Advisory Committee, had recently said that to achieve the goal of tax reforms, it is very important to eliminate all types of tax exemptions in income tax.

He said that tax exemption makes life complicated, increases expenditure on compliance and also increases legal disputes. However, Revenue Secretary Sanjay Malhotra has clarified that the government has no plans to phase out the old income tax regime.

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What will come out of Finance Minister Nirmala Sitharaman’s box for them this time? Will they get exemption from standard deduction? Will the discount on NPS increase? Will NPS be included in the new tax regime? Will the tax exemption limit increase? Will the tax free income limit of Rs 7 lakh be increased? If sources are to be believed, this wish of the taxpayers may be fulfilled. Yes, the limit of tax free income can increase from Rs 7,00,000 to Rs 7,50,000.

Will taxpayers get Modi’s guarantee?

Taxpayers have a guarantee this time from the Modi government. India’s budget is going to be presented tomorrow on 1 February 2024. Taxpayers have many expectations from Finance Minister Nirmala Sitharaman’s interim Budget 2024.

According to sources, Modi government may give some more relief to taxpayers. Currently, in the new tax regime no tax has to be paid up to Rs 7 lakh. Now the government can increase it to Rs 7.50 lakh. At the same time, the government can also give a separate tax slab to women, in which no tax will have to be paid up to Rs 8 lakh.

Budget will be presented tomorrow

Union Finance Minister Nirmala Sitharaman will present the budget (Union Budget 2024) for the sixth time on 1 February 2024. Nirmala Sitharaman is going to present the last budget of the second term of the Modi government because after that Lok Sabha elections are going to be held across the country.

In such a situation, the government can make many announcements about salary classes. The government’s focus is to increase focus on the new tax regime. More and more people have to be connected with it. This time it is expected that the government will announce the new tax and more people will choose it.

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But, how far these expectations will be fulfilled will be known only after the presentation of the budget. According to earlier information received from sources, good news is coming for the employed. Changes may be seen in the budget regarding House rent allowance (HRA).

What is going to happen for the employed?

If sources in the Finance Ministry are to be believed, there are preparations to provide big relief to those working in different cities. Good news may come especially for those living in cities like Bangalore and Pune. In Budget 2024, the Finance Minister can make changes in the tax exemption available under HRA. At present, the scope of tax exemption available to those working in non-metro cities can be increased. Apart from metro cities, announcement is also possible for residents living in other cities.

Preparation to increase the scope of tax exemption in HRA

In the current system, rules have been made for metro and non-metro cities regarding house rent allowance. In 4 metro cities, up to 50% tax exemption is available under HRA by combining Basic-DA. At the same time, in other cities there is a provision of 40% discount in HRA including Basic-DA. Now in the budget, the HRA exemption limit for people living in non-metro cities can also be increased by 50 percent. Apart from this, the exemption of Rs 60 thousand available in HRA every year for non-salaried individuals can also be increased.

Non salaried people can get gift

The limit of tax exemption on HRA for non-salaried individuals is Rs 60 thousand. This can be increased in the budget. At present, under section 80GG, non-salaried individuals get tax exemption on House Rent Allowance i.e. HRA. The limit per month is Rs 5000 and the maximum in a financial year is Rs 60 thousand. Consideration can be given to increasing this limit.

How to get Income Tax deduction in HRA?

The condition for claiming income tax on HRA is that the taxpayer lives in a rented house. Tax exemption from HRA (House rent allowance) can be claimed under Section 10 (13A) of the Income Tax Act. The total taxable income is calculated by deducting HRA from the total income.

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Will the income tax slab change?

According to sources associated with the Finance Ministry, a change in the income tax slab may be seen in the budget to provide relief to the taxpayers. However, there will not be much change. But, some relaxation is possible for people of a particular salary group. Talking about the old tax regime, there are a total of 5 slabs of income tax in the current system. Among these, income up to Rs 2.5 lakh comes in tax free category. After this, there is 5 percent tax on income between Rs 2.5 lakh to Rs 5 lakh.

At the same time, 20 percent tax has to be paid directly on income of Rs 5 lakh to Rs 10 lakh. 30 percent tax is levied on income between Rs 10 lakh to Rs 20 lakh and those with income above Rs 20 lakh also have to pay 30 percent tax. At the same time, in the new tax regime, till now salary up to Rs 7 lakh comes under the tax free ambit. Bigger relaxation can be given in this. This can be increased to Rs 10 lakh. There will be no change in the old tax regime. This step can be taken to rationalize the new tax regime.

What will be in the new income tax slab?

If sources in the Finance Ministry are to be believed, the salary structure of up to Rs 10 lakh will be in focus in the budget. There is a possibility of change in this. Currently, salary up to Rs 10 lakh comes in two tax slabs. The first is Rs 6 to 9 lakh, on which there is 10 percent tax. Whereas, 9 lakh to 12 lakh on which there is 15 percent tax. In such a situation, an attempt may be made to convert the two tax slabs into one slab of Rs 10 lakh. There is a plan to impose 10 percent tax on this also. In this, the slab of Rs 6-9 lakh can be changed.

Will people with income of Rs 15 lakh also benefit?

In the current tax system, in the new regime, 20 percent tax is levied on those with income of Rs 15 lakh. Meaning, if we look at up to Rs 10 lakh, tax is levied at the rate of 10 and 15 percent. At the same time, there is 20 percent tax on Rs 15 lakh. There is a possibility that the 15 percent slab may be abolished. 10% tax should be levied directly on income up to Rs 10 lakh and 20% tax should be levied on income between Rs 10 to 15 lakh.

In such a situation, the tax burden on those falling in the 10 to 12 percent slab will increase, but there will be huge relief up to Rs 10 lakh. If sources are to be believed, the plan is to break the slab and make it more attractive than the old regime. However, other relaxations will not be available in this.

If salary is above Rs 15 lakh then there is no benefit

Be it new tax regime or old tax regime, in both the structures, people with salary above Rs 15 lakh have to pay 30 percent tax. The situation will remain similar in the coming days also. There is no intention to give any special exemption to this income group.

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The Income Tax Department is keeping an eye on the taxpayers who have done high value transactions in this financial year. The Income Tax Department is sending a message to taxpayers doing high value transactions. The Income Tax Department has made a post regarding this on X (formerly Twitter).

Some references have come to the notice of the Income Tax Department regarding recent communication sent to taxpayers pertaining to transaction(s) made by them.

Taxpayers may pl note that such communication is to facilitate the taxpayers & make them aware of the information…

— Income Tax India (@IncomeTaxIndia) December 26, 2023

Meaning of the message sent by the Income Tax Department

Income Tax Department is sending messages to many taxpayers regarding high value transactions. The department is advising the taxpayer through SMS. Many people are considering this message as a notice, whereas let us tell you that this is not a notice but an advice is being given by the department. The department is advising the taxpayer to file revised returns on time.

The department said in its ex-post that taxpayers can fill the feedback online on the official portal of the department. Apart from this, taxpayers can also modify the return.

You have also received the message from ITD

If you have also received a message from ITD, then first of all you will have to remove AIS. After this you match the AIS with the returns. If there is any mismatch, you can file a revised return. You can respond on the Compliance Portal on the official portal of the Income Tax Department.

To respond on the Compliance Portal, you have to log in to the e-filing portal ( www.incometax.gov.in/ ) . After this you have to go to Pending Action and select Compliance. Now after clicking on the ‘e-Campaign Tab’, high-value transactions will be shown. Here you can enter the reply for these transactions.

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A survey by industry body CII said that 89 percent of individuals and 88 percent of companies believe that the time taken to receive income tax ‘refunds’ has reduced in the last five years. The CII Income Tax Refund Survey submitted to Finance Minister Nirmala Sitharaman also found that 75.5 per cent of individuals and 22.4 per cent of companies did not pay TDS (Tax Deduction at Source) in excess of their estimated tax liability.

Benefits of technology and automation

The survey participants (84 percent individuals and 77 percent companies) also believe that the process of checking the status of tax refund is now better and smoother. CII President R Dinesh said, “The measures taken by the government in recent years to streamline, simplify and automate the taxation system have brought considerable benefits. This is evident from the results of CII’s survey on assessing the speed and efficiency of income tax refunds.

The survey said that surprisingly 87 per cent of individuals and 89 per cent of companies feel that the process of claiming income tax ‘refund’ is convenient. CII Director General Chandrajit Banerjee said, “There has been a significant reduction in the waiting time for individuals and companies to receive income tax refunds in the last five years (2018-2023). This is encouraging. This reflects the government’s efforts to simplify and efficient the process of obtaining income tax refund over the last few years.

Survey conducted with 3531 respondents

CII conducted this survey at all India level among 3,531 participants in October 2023. Of these, 56.4 percent were individuals and 43.6 percent were companies/enterprises/organizations. There was participation of major states in this. The survey said that automation and simplification in the income tax ‘refund’ process has increased the trust in the Income Tax Department among the taxpayers.

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Today is the last day of October. With the beginning of the month of November, this month is very important for taxpayers. In this month, you will have to complete many tax related tasks so that you do not face any problems later.

According to the information given on the official website of the Income Tax Department, many important tax related works have due dates in the month of November. In such a situation, a tax calendar has been issued regarding these dates. If you are also a taxpayer then we are telling you what are the deadlines for the next tasks.

Deposit taxes by November 7, 2023

The deadline for depositing the tax deducted or collected in the month of October ends on November 7, 2023. It is worth noting that the tax deducted by any government office will be paid to the government account on the same day on which the tax is paid. There will be no need for income tax challan for this.

Get TDS certificate by November 14, 2023

The deadline for obtaining TDS certificate of TDS deducted under Section 194-IA, Section 194-IB, Section 194M and Section 194S for the month of September, 2023 is ending on November 14, 2023. In this way, to get TDS certificate under these sections, you should apply before the due date.

Submit quarterly TDS certificate by November 15, 2023

If you have not yet submitted the TDS certificate for the quarter ending September 30, 2023, then you have time till November 15, 2023. This TDS certificate is for taxes other than salary. At the same time, the due date for submitting Form 24G of TDS deposited without challan in the month of October is also ending on 15th November. Taxpayers will have to submit the statement in Form November 3BB to the stock exchange in which the client code is mentioned.

This deadline is ending on November 30, 2023

The deadline for submitting challan details under Section 194-IA, Section 194-IB, Section 194 M and Section 194S is October 2023. At the same time, if you have also done any specific domestic or international transaction, then the deadline for filing returns for assessment year 2023-24 is ending on 30th November.

The deadline for submitting details of the amount earned by the venture capital company in the financial year 2022-23 is ending on November 30. For this you will have to submit form number 64. The deadline for submission of Form 3CEFA for international transactions under safe port rules is also ending on November 30.

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Tax has to be paid on the same basis. What should you do if you do not fall in that tax slab and TDS is deducted?

Every person falling under the tax rules made by the Income Tax Department has to pay tax on time. If the Income Tax Department has also created taxable limit. If your income falls within this limit, you do not have to pay tax. At the same time, if the income exceeds the taxable limit then you have to pay tax. While paying tax, you should ensure that you pay the tax on time. If you do not do this then income tax notice may also come in your name.

TDS is applicable on your salary, rent and interest received from the bank. TDS is deducted from these taxpayers. If a salaried person has a bank account or has income from rent, then his TDS is deducted. This TDS is calculated on the basis of income tax slab . The rate of TDS is decided under the Income Tax Act 1961.

The rate of TDS is decided on the basis of income and its source along with PAN. This means that if a taxpayer has not given PAN card information, his TDS rate will be different. If your income is less than taxable and your TDS is being deducted then you can use Form 15G/H to correct it.

Who uses Form 15G/H

Both these forms 15 g/h are for two different age groups. Form 15G is used by persons below 60 years of age. Whereas Form 15H is used by senior citizens. Both these forms are used by taxpayers who are not taxable.

Purpose of Form 15G/H

Form 15G/H is a self-declaration form. This form has been designed for TDS deduction. Through this form, any resident below 60 years of age can avail a deduction of Rs 2.5 lakh under the old tax system. At the same time, people below 80 years of age get a rebate of up to Rs 3 lakh.

Under the new tax system, if a senior citizen fills Form 15H and his income is less than Rs 7 lakh, then he does not have to pay any tax.

How to fill Form 15G or 15H

These forms are divided into two groups. You enter correct information in this form. In this form you will have to give your personal information. You should take special care of one thing that your name and date of birth are correct. In this form you will have to give information about all your income sources. For this you will have to fill separate forms. If you have 4 bank accounts then you will have to fill 4 forms.

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Yes, the Finance Ministry has given its decision on the interest rate of General Provident Fund (General PF) for the October-December quarter of the financial year 2024. The interest rate of GPF has been kept unchanged at 7.1 percent by the Finance Ministry. That means, this quarter too, interest will be paid on GPF at the old rate of 7.1 percent. This interest rate will be effective from 1 October 2023 to 31 December 2023.

Only government employees can invest

Let us tell you that GPF is a social security scheme available for central employees. Government employees can become its members by contributing a fixed portion of their salary. Only government employees can invest in GPF account. There is no contribution of any kind in this from the government. The government gives only interest on this. However, this investment should not be less than 6% of the employee’s salary.

Exemption to taxpayers under Section 80C,

the maximum contribution in this can be up to 100% of the employee’s salary. The maturity of the investment made in this occurs at the time of retirement. Employees can also take loan against GPF.

In this tax saving scheme, taxpayers get exemption under Section 80C. On the other hand, the government has not changed the interest rate of PPF for the October to December quarter. This also remains at the old level of 7.1 percent.

Recently, the government had changed the interest rate of 5 year RD scheme in small saving schemes for the October quarter. The Finance Ministry had increased its interest rate from 6.5 percent to 6.7 percent. There was no change in the interest rates available on other small savings schemes including PPF.

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The deadline for issuing notices is September 30 and taxpayers have been given 30 days to respond to these automated notices.  According to the report, central and state GST officials have sent these notices in the last fortnight. These notices mainly relate to mismatch in GST output and liability, input tax credit, ineligible tax credit claims and reversal of credit in case of exempted supplies. Tax officials can send notice even after September 30, but they will have to prove the case of tax evasion or fraud on behalf of the taxpayer.

Tax experts said this will lead to an increase in litigation in the next three months, while the cash flow of companies will be affected as they will have to deposit 10% of the total liability as deposit to file appeals. Tax expert Bipin Sapra, partner at EY, said that given that the decision deadline for these show cause notices is December 31, we will see a lot of litigation in the next three months.

PwC partner Pratik Jain observed that many of the notices appear to have been issued without proper analysis of facts and figures. He said many of them should be removed later, although this would cause controversy and paperwork for the industry. Officials would like to plan ahead so that these incidents can be reduced.

Deloitte partner Mahesh Jaisingh said underpayment of tax on related party transactions, wrong claims of input tax credit, export status (including refunds given), and state-wise credit availment and distribution are some of the common areas of disputes.

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Deadline for filing audit report extended by one month

The Central Board of Indirect Taxes (CBDT) on September 18 announced extension of the deadline for filing audit reports for trusts, educational institutions and hospitals for the financial year 2022-23 to October 30 from the earlier September 30. CBDT said in its circular that the due date for submission of audit report in Form 10B/Form 10BB for the financial year 2022-23, which is 30 September 2023, has now been extended to 31 October 2023.

Trusts and institutions got relief

Form 10B pertains to charitable institutions and religious trusts operating under section 12AB of the Income Tax Act, while Form 10BB is required to be filled by educational institutions and medical institutions operating under section 10(23C) of the law.

Last date for submitting ITR-7 extended till 30th November

CBDT has also extended the due date for filing return of income in Form ITR-7 for assessment year 2023-24 from 30 October to 30 November 2023. Let us tell you that ITR-7 form is filled by charitable and religious trusts, political parties, scientific research institutions, universities, colleges or other institutions.

Nearly 7 crore taxpayers have filed ITR

According to the Income Tax Department, till September, about 6.98 crore taxpayers have filed ITR. Out of these, refund has also been issued to about 3 crore taxpayers. Taxpayers who have not been able to file ITR by July 31 have been given the opportunity to file belated ITR till December.

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For the current financial year till July 31, 2023, 6.77 crore taxpayers have filed income tax returns, but those who have missed, the Income Tax Department has given the option to file belated ITR. Under Section 139 (5) of the Income Tax Act 1961, taxpayers have been given the facility to file belated ITR. Taxpayers have been given a chance till 31 December 2023.

What is the penalty for belated ITR?

Taxpayers will have to pay late fine or penalty for filing belated ITR as per income tax rules. Filing of belated ITR is charged from the prescribed fine taxpayers under section 234F of the Income Tax Act, 1961. A fine of Rs 1,000 has to be paid for small taxpayers who file belated ITR, i.e. those with an annual income of less than Rs 5 lakh. On the other hand, those whose income is more than Rs 5 lakh will have to pay Rs 5,000 as penalty, after which belated ITR can be filed.

Income tax told two ways to deposit penalty

Taxpayers have to deposit applicable late fine or penalty before filing belated ITR. Late fee/penalty for filing belated ITR is paid using Challan No. 280.
Taxpayers can submit the payment of belated penalty online on the website of NSDL.
Taxpayers can also deposit the late fine by visiting the nearest bank branch.

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Late fee up to Rs 5000: According to Section-234F of Income Tax, if the total income of a taxpayer is more than five lakh rupees, then the late fee will have to be paid five thousand rupees. If the total income is less than five lakh rupees, then one thousand rupees will have to be paid. If the return is not required to be filed, no late fee will be charged. If the total income base is less than the exemption limit, but still filing the return late, then in this case also there will be no penalty.

Interest will be charged at one per cent every month: Late filing of ITR can lead to interest as well as penalty. According to Section-234A of Income Tax, interest will be charged at the rate of one per cent per month on the total income tax. Even one day after the month will be counted as a full month. For example, if a taxpayer files a belated ITR on 3rd November, the delay will be of 3 months and 3 days but interest will be charged for the full four months.

No interest on refund: If a taxpayer claims a refund, the department will release it only after the work of filing and verifying the ITR is complete. However, no interest will be paid on refund claim in belated ITR.

Will not be able to set off losses: Non-filing of ITR on time will not allow carry forward of capital gains, losses from house property, business and profession and other sources. Such loss can be carried forward up to eight years if ITR is filed on time.

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Crores of people file income tax returns in the country. At the same time, the last date for filing income tax return has come. By 31 July 2023, taxpayers will have to disclose their earnings made in the financial year 2022-23. On the other hand, if someone does not file income tax return by the due date, then those people may also have to pay a fine. At the same time, more than 6 crore people have filed their ITR.

On the other hand, filing of income tax return this time is very special because this time a good news has also been given to the people by the Modi government. In fact, in Budget 2023, an important announcement was made by Union Finance Minister Nirmala Sitharaman and people were exempted from the tax filing limit. Crores of people have also benefited from this exemption.

New tax regime

Actually, the Modi government had increased the exemption in the income tax limit in the new tax regime. It was announced in Budget 2023 that if a taxpayer files income tax return under the new tax regime, then he will get exemption on annual income up to Rs 7 lakh. This means that if people file income tax returns under the new tax regime, they will not have to pay any tax up to an annual income of Rs 7 lakh.

Along with this, the Modi government has also given the people the benefit of standard deduction in the new tax regime. If you work on salary, then people will also get standard deduction of Rs 50 thousand from the new tax regime. In such a situation, along with tax exemption on annual income of Rs 7 lakh, people will also get a standard deduction of Rs 50 thousand. In such a situation, people can get tax exemption from the new tax regime up to an income of up to Rs 7.5 lakh annually.

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Income tax return

In such a situation, if you have not filed ITR yet, then you should complete the process as soon as possible to avoid any tax related problems in future. At the same time, crores of people have filed their income tax returns. The total number of returns filed so far shows that taxpayers should not wait for any extension.

Crores of ITR filing

This year, the last date for filing ITR is 31 July. There are still three days left for the date of 31st July to end. Therefore, taxpayers who have not yet filed their returns should file their returns now. Data from the Income Tax e-filing website shows that so far more than 5 crore ITRs have been filed by taxpayers.

We express our gratitude to the taxpayers & tax professionals for helping us reach the milestone of 5 crore Income Tax Returns (ITRs), 3 days early this year, compared to the preceding year!

Over 5 crore ITRs for AY 2023-24 have already been filed till 27th of July this year as…

— Income Tax India (@IncomeTaxIndia) July 28, 2023

Income

Tax Department tweeted, ‘We express our gratitude to taxpayers and tax professionals for helping us reach the target of 5 crore Income Tax Returns (ITR) this year 3 days earlier than last year. ! More than 5 crore ITRs have been filed for AT 2023-24 till 27 July this year as compared to 30 July last year.

Income Tax Return

According to the Income Tax Department, ‘out of 5.03 crore ITRs filed till July 27, 2023, about 4.46 crore ITRs have been e-verified i.e. more than 88% ITRs filed have been e-verified’ ! Out of the e-verified ITRs, over 2.69 crore ITRs have already been processed!’

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The Income Tax Department is sending messages and emails to taxpayers daily asking them to file their returns as soon as possible. Usually people have a habit of filing ITR at the last moment. Due to this many times the system hangs and there is a problem in filling the ITR. Therefore, you should also file your ITR as soon as possible without waiting for the last date. Its process is very easy and you can complete this work yourself in 15 minutes sitting at home.

Taxpayers are often nervous about filing their ITR. They find this work very difficult. In such a situation, they get ITR filled from CA who charge hefty fees. But it is very easy to fill. Today we are going to tell you about the process, with the help of which you will be able to file your income tax return sitting at home. The process of filing income tax return is quite easy. You will not have to face any kind of problems in this. Let’s know about it in detail…

Fill ITR like this

To file income tax return, first of all visit the e-filing portal www.incometaxindiaefiling.gov.in. If you already have an account then you have to login. If there is no account, then in this case select the option of registration.

After this you have to select the option of e-file on the homepage and select the option of File Income Tax Return. Now the option to choose the assessment year will appear in front of you. You have to go to Personal option to file ITR online. After doing this, you have to select the most important appropriate form.

If you do a job then you come in the salaried class. In this case you have to choose ITR-1 form. The salaried taxpayer will get a pre-filled form. With this you can merge data from salary slip, Form 16 and AIS. Check your bank details before claiming the return. After checking all the necessary things, you have to submit the ITR. After doing this process, ITR has to be e-verified. You can easily do this online with the help of bank details. The Income Tax Department processes the ITR in a few days. With the help of acknowledgment number, you can easily check your status.

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Filing of Income Tax Return is mandatory under the Income Tax Act 1961. This is the reason why senior citizens are not exempted from filing ITR in India. Senior citizens who are Indian residents and whose taxable income exceeds a certain limit, then they have to file ITR. Senior citizens and super senior citizens have to file ITR in the country.

Who is Senior Citizen and Super Senior Citizen?

A resident who is of the age of 60 years or more but less than 80 years at any time during the previous year is treated as a senior citizen for the purpose of income tax. Super Senior Citizen who is 80 years or more is considered. The Income Tax Act 1961 does not provide any exemption to senior citizens or super senior citizens from filing return of income.

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According to the figures of the Income Tax Department, till July 24, more than 4 crore ITRs have been filed. The last date for filing ITR has been fixed as 31 July 2023. Those who do not file ITR by this date will have to file belated ITR and pay penalty for the same.

Foreign assets must be disclosed in ITR

The Income Tax Department has said that taxpayers who have property abroad or have a bank account or receive any kind of income from abroad must disclose it in the ITR. The Income Tax Department said in the tweet – Please note: Holders of foreign bank accounts, properties and income. Please do not forget to disclose foreign assets in your Income Tax Return (ITR) for Assessment Year 2023-24. Please ensure that you disclose all Foreign Assets (FA) and Foreign Sources of Income (FSI) if you have foreign bank accounts, or assets, or receive income from abroad.

Returns from Shares or PPF Investments

The Income Tax Department has also asked those who receive income from investment in shares or receive dividends to disclose. If taxpayers have invested in Public Provident Fund, then the interest received in it is tax free. That’s why you have to show it as your income.

Details of foreign investment information

According to the Income Tax Department, taxpayers who earn income by investing anything abroad will have to disclose it in ITR. This income can be in the form of holdings, foreign funds, property, bank accounts.

10 lakh fine for hiding foreign assets

Income Tax Department said that- the last date for filing ITR is 31 July 2023. Remember: Failure to disclose foreign assets/income can result in a penalty of Rs 10 lakh under the Black Money (Undisclosed Foreign Income and Assets) and Tax Act 2015.

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The process of depositing income tax return in the account of taxpayers has been started by the Income Tax Department and those who have filed their ITR have started receiving money. Income Tax Department is continuously advising taxpayers by sending messages and through social media that ITR should be filed as soon as possible without waiting for the last date. There has been a sharp increase in the number of people filing income tax returns so far this year as compared to last year.

Till now, more than 3 crore ITR files have

been shared on the Twitter handle of the Income Tax Department through a tweet that till now more than 3 crore ITR files have been filed in the country. Compared to last year, the Income Tax Department has achieved this milestone 7 days earlier. It has been told in the tweet that this year for the assessment year 2023-24, more than 3 crore ITRs have been filed till July 18, 2023, while last year the same number of ITRs were filed till July 25.

Income Tax Department appeals to taxpayers

According to the figures of the Income Tax Department, till July 18, 2023, 3.06 crore taxpayers in the country had filed their ITRs. Out of these, 2.81 crore ITRs have been e-verified, which means the process of e-verification of 91 per cent ITRs has been completed. Taxpayers have been urged by the department that we expect this enthusiasm to continue and all those people who have not yet filed ITR should do this important work as soon as possible to avoid overcrowding in the last dates. Take it.

So much fine after 31st July

If the taxpayer is not able to file his ITR till 31st July, the deadline fixed by the Income Tax Department, then later he will have to do this work along with the fine. Under this, a fine of Rs 1,000 is imposed for taxpayers with annual income up to Rs 5 lakh, while a provision has been made to levy a late fee of Rs 5,000 for annual income of more than Rs 5 lakh. In a tweet by the Income Tax Department, taxpayers have been advised that those who have not filed ITR for the assessment year 2023-24, should do so as soon as possible to avoid last minute rush.

These documents are needed while filing ITR

• PAN Card: PAN card is a necessary document not only for filling ITR but also for opening a bank account. Keep it with you while filling ITR.
• Aadhaar Card: There are details like name, address and date of birth on Aadhaar. Its 12 digit unique ID number has to be entered.
• Form 16A: Form 16A is necessary for sources of income other than your salary, it contains complete details of your income.
• Form 26AS: Gives information about TDS deducted from your income and payments made. Can download from Income Tax website.
• Salary Slip: Salary slip is also an important document. It contains details like income, travel allowance, which have to be filled.
• Home Loan: If you have a home loan going on, then it is necessary to give complete information about it while filing income tax return.

You can file ITR like this sitting at home 

• Go to the e-filing portal (https://eportal.incometax.gov.in/) of the Income Tax Department.
• After this, log-in with the help of your User ID and Password on the homepage.
• On the dashboard, click on e-File > Income Tax Return > ‘File Income Tax Return’.
• Then select the assessment year, such as 2023-24, and click on ‘Continue’.
• Now choose the mode of ITR filing and select the online option.
• Now choose your ITR form according to your tax income and TDS calculation.
• After selecting the applicable ITR for you, keeping all the necessary documents close, click on the start option.
• Now some questions will appear on the screen, whatever is applicable to you, mark its check box and click on continue.
• As per the documents, enter the details of your income and deductions in different sections.
• If there is a case of tax liability, a brief description of the tax-calculation based on the details provided by you will appear.
• Taxability is created according to the calculation, then you can choose the option of ‘pay now’ and ‘pay later’.
• If no tax liability is created, then after paying the tax, one has to click on ‘Preview Return’.
  Then click on ‘Preview and submit return’ declaration checkbox and select ‘Proceed for validation’ option.
• View the preview and on the ‘Submit Return’ page, proceed to verify. It is mandatory to verify and e-verify the return.
• On the e-verify page, select the option using which you wish to e-verify and click on ‘Continue’.
• Once you have e-verified the return, an intimation about the successful submission of the form appears on the screen.
• Transaction ID and Acknowledgment Number are displayed on the screen, so that you can check the status of your ITR form in future.
• Your mobile number and email ID which is registered on the e-filing portal, you will get the message of successfully filling the form.
• Self-select new or old tax regime
• While filing ITR, keep in mind that this time the new tax regime has been kept in default. If you want to file ITR under the old tax regime, then you will have to convert it yourself. There are very limited options to avail tax exemption in the new tax regime. However, income up to Rs 7 lakh has been effectively made tax free. At the same time, the tax exemption limit has not been increased in the old tax regime. But there you can claim tax exemption by investing in various government schemes and in other ways.

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The last date for linking PAN and Aadhaar card (PAN-Aadhaar Card Linking) by the Income Tax Department has already passed on July 31. Taxpayers whose PAN has become inactive can no longer use it until it is updated by paying a fine. But a big update has come from the Income Tax Department for NRIs.

NRIs will get the way of address proof

The Income Tax Department on Tuesday said non-resident Indians (NRIs) and foreign nationals whose PAN (Permanent Account Number) has been deactivated due to non-linking with Aadhaar, will have to submit their residential address to the concerned assessing officer for its revival. Proof should be submitted. The department said that some Overseas Indians/Overseas Citizens of Indian Origin (OCI) have raised concerns regarding their PAN becoming inoperative.

Dear Taxpayers,

Concerns have been raised by certain NRIs/ OCIs regarding their PANs becoming inoperative, although they are exempted from linking their PAN with Aadhaar.
Further, PAN holders, whose PANs have been rendered inoperative due to non-linking of PAN with Aadhaar,…

— Income Tax India (@IncomeTaxIndia) July 18, 2023

The Income Tax Department has written on Twitter that residential status is determined with reference to NRIs who have filed ITR in any of the last three assessment years or have informed the concerned Assessing Officer (JAO) about their residential status. Is. According to the department, PANs become inoperative in cases where the NRI has not updated his residential status or filed returns in the last three assessment years.

“NRIs whose PANs are inoperative are requested to submit relevant documents to their respective Assessing Officers with a request to update their residential status in the PAN related information,” the Income Tax Department said.

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The last date for filing Income Tax Return is getting closer. In such a situation, those people who have not yet filed their personal income tax return, they will have to file ITR by 31 July 2023 for the income of the financial year 2022-23. At the same time, for filing ITR, people will have the option of filing ITR from the new tax regime and the old tax regime.

Income tax return

While presenting the Budget 2023, many new announcements were also made by the Modi government. During this, a big announcement related to standard deduction for taxpayers was also made by Finance Minister Nirmala Sitharaman. Actually, earlier the benefit of standard deduction was not available in the new tax regime, but it was announced in the budget 2023 that now the benefit of standard deduction can also be obtained from the new tax regime.

Standard Deduction

The term standard deduction refers to the portion of income that is not subject to tax which can be used to reduce your tax. Now income taxpayers can get the benefit of standard deduction on filing tax even after filing ITR from the new tax regime.

Standard deduction under the new tax regime

The benefit of standard deduction available to salaried and pensioners (including family pensioners) has been introduced under the new tax regime. A person opting for the new tax regime for the financial year 2022-23 will be eligible to claim standard deduction of Rs 50,000. Family pensioners opting for the new tax regime will be eligible to claim standard deduction of Rs 15,000.

Zero tax on income up to Rs 7 lakh

A person opting for the new tax regime for the financial year 2022-23 will have to pay zero tax if the taxable income does not exceed Rs 7 lakh in a financial year. In addition, a person with a taxable income of up to Rs 7.5 lakh can claim the benefit of standard deduction of Rs 50,000. This will reduce his taxable income to Rs 7 lakh and thus he will get zero tax liability.

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On the other hand, if you have filed the return and you want to see the status of your tax refund, now you can easily do so. For this you do not even need to go anywhere, you can do this work while sitting at home. Let’s know its step-by-step process

New facility for taxpayers

In fact, keeping in view the convenience of taxpayers, the department has started a new facility on the Income Tax Portal for them. Taking advantage of this facility, people can now directly check their refund status sitting at home. Till this facility, taxpayers could check their refund status only through the website of TIN-NSDL.

According to the Income Tax Department, if a taxpayer deposits more tax than his tax, then he is entitled to a refund. People who have filed for return and want to check their refund status then follow this procedure-

Check status online like this

First of all go to the e-filing portal of the Income Tax Department,
scroll down here you will see the option ‘Your Refund Status’, click here.
After this you have to enter PAN number, financial year and assessment year.
Now you will get an OTP which you will have to enter on the website.
After this you will see your status immediately.
If there is any problem in your ITR, then the message ‘Record Not Found’ will appear on the screen.

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There is great news for the people who pay Income Tax. If you also pay income tax, then now you have got a big relief from the Central Government. This time an important decision has been taken by the Modi Government, after which no tax will be levied on the income of crores of taxpayers of the country. Finance Minister Nirmala Sitharaman had made a special announcement about this in Budget 2023. Let us tell you that now which people have got freedom from paying tax.

Was announced in the budget

In February, the Modi government had presented the budget, in which the Finance Minister had announced that people filing taxes under the new tax regime are now getting relief from paying taxes. The government had decided to increase the income tax exemption to Rs 7 lakh in the new tax regime. That is, now people with income up to 7 lakhs will not have to file tax.

Earlier the limit was 5 lakhs, let us tell you that the government had told that from now on, if anyone files tax under the new tax regime, he will not have to pay tax on income up to Rs 7 lakhs. Earlier this limit was Rs 5 lakh, which was increased to Rs 7 lakh in February. People with higher salary have benefited from the increase in tax exemption.

Apart from this, you will also get the benefit of standard

deduction in the new tax regime. Salaried and pensioners now file tax under the new tax regime, then they will get an additional benefit of Rs 50,000. In such a situation, after earning seven lakh rupees annually in the new tax regime, a rebate of 50 thousand rupees will also be available under the standard deduction.

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Know here what is the last date of ITR filing for you

First of all, know about those taxpayers whose accounts are not to be audited under the filing of ITR, so the date for filing returns for such people is 31 July 2023.

If such taxpayer is required to file transfer pricing (TP) audit report in Form No. 3CEB, then the last date of ITR filing for such people is 30 November 2023.

If such person is a partner in a firm which is required to report Transfer Pricing (TP) audit in Form No. 3CEB, then the last date of ITR filing for such persons is 30 November 2023.

If a person is the spouse of a partner in a firm who is required to report Transfer Pricing (TP) audit in Form No. 3CEB, then the last date for filing ITR for such persons is 30 November 2023. On the other hand, the last date of ITR filing for such taxpayers whose husband or wife is applicable to section 5A is also 30 November 2023.

The last date for ITR filing is October 31, 2023, for companies that do not need to report Transfer Pricing (TP) audit in Form No. 3CEB.

Those whose accounts are to be audited under the Income Tax Act or any other law, then the last date for ITR filing is 31 October 2023.

If such is a partner in a firm whose accounts are required to be audited, then the last date for ITR filing is also 31 October 2023.

Individuals who are the husband or wife of a person whose firm is required to be audited, and to whom the provisions of section 5 apply – need to file ITR by 31 October 2023.

In all other cases (mostly salaried taxpayers and individuals whose accounts are not required to be audited) the last date for ITR filing is till 31 July 2023 i.e. these people have the last date deadline of this current month.

What should taxpayers keep in mind

All taxpayers are advised to file their due ITR before the last date so that they do not have to pay late fee or penal interest.

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If PAN is not linked to Aadhaar card from 1st July 2023, PAN card may become inactive. Apart from this, TDS will be deducted on the higher amount. As per the Income Tax Act 1961, it will be mandatory for all PAN holders to link PAN with Aadhaar. Taxpayers will be able to resume their PAN after paying the dues.

This process can be done on the portal of National Security Depository Limited by paying the amount under Challan Number ITNS 280 under Major Head 0021 (Income Tax other than Companies) and Minor Head 500 (Other Receipts).

Reactivate PAN like this

A notification issued under the Central Board of Direct Taxes on March 28, 2023 states that the PAN card can be reactivated within 30 days after paying a penalty of Rs. Know the Process –

– For this you first need to log in with your account on the e-filing website of the Income Tax Department

– After that click on option to link PAN with Aadhaar card

– Clicking on this link will ask you for personal information. After filling all the columns a deposit of Rs.1000 has to be paid.

– Here you can pay the amount through e-pay tax. The concerned Income Tax department has to be informed about this.

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The Income Tax Department allows salaried individuals to file their ITR easily using Income Tax Return Form ITR-1. This is because ITR-1 does not require much information to be filled in comparison to other ITR forms. That is why it is also called Sahaj Form. However, not all salaried individuals can file their tax return using ITR-1 form. If someone has made some major transactions in the financial year 2022-23 (AY 2023-24), then they may be ineligible to use ITR-1.

Who is eligible to file ITR-1 (SAHAJ) in FY 2022-23?

ITR-1 i.e. Sahaj form can be filed by such taxpayers who-

• Be an Indian resident.
• The total income in the financial year 2022-23 (AY 2023-24) should be less than Rs 50 lakh.
• Income source should be salary, pension or family pension.
• You have income from a house property.
• Agricultural income up to Rs.5,000.
• Earning from interest and dividend from bank, post office.

Who is not eligible to file ITR-1 Sahaj Form for FY 2022-23?

If a person earns income from any of the sources mentioned below then he cannot file ITR using ITR-1 form. People in the list given below cannot file ITR from ITR-1.

• Individuals with an annual income of more than Rs.50 lakh.
• RNOR and NARI cannot file ITR-1.
• People who have more than one house cannot fill ITR-1.
• Income from horse race, lottery or legal gambling cannot fill ITR-1.
• If you have short term or long term capital gains from the sale of shares, mutual funds, land, you cannot file ITR-1.
• Earning more than Rs 5,000 through agriculture.
• People who are getting income from both business and job.
• If TDS has been deducted for withdrawing money from bank or post office in excess of the prescribed limit, then ITR-1 cannot be filed.
• Individuals who have any asset in a foreign company.
• People who have invested in non listed stocks.
• Be a director of a company or have a bank account abroad. Such persons cannot file ITR-1.

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Every year you will need to file ITR to get tax return. For this all of you need Form-16. This includes your income, deductions from it and many other information related to your salary. Under Section 203 of the Income Tax Act, 1961, it has been made mandatory for every company to give complete information of its employee’s income through Form-16 showing TDS. This year you should file ITR by 31st July 2023.

When you will get Form-16, then you will have to check many types of information. In this, you have to pay special attention that the deduction you get is correct. Such deductions include House Rent Allowance (HRA) and Leave Travel Assistant (LTA).

You should keep these things in mind while filing ITR-

– You should keep in mind whether the PAN number mentioned on Form 16 is correct or not. If it is wrong, then it will not appear in Form 26AS, due to which you will not be able to claim credit.

You have to check other details like your name, home address, tax deduction and collection account number. Examine it carefully.

– You should compare the tax shown in Form 16, Form 26AS and AIS (Annual Information Return. You should check the tax deducted from your salary multiple times. If anything is wrong, you can report this to the employer in Form 16. Request correction of information.

If you have opted for the old tax regime, then you can apply for the deduction. For this, make sure that all the information in Form 16 is correct.
If you have changed the job, then you must take Form-16 from the old company.

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