Income tax department has not extended the deadline for income tax audit under section 44AB. This means that now individuals with business or professional incomes above a specified turnover must pay the penalty for not submitting audit report and then file the ITR by October 31.
The income tax department will not disburse the income tax refund either in full or part if they have served an individual with a section 245 notice. Section 245 gives power to the income tax department to adjust past year's income tax liability with the present year's income tax refund.
Filing of schedule FA is mandatory if an individual is owner of any foreign asset like foreign stocks, foreign mutual funds, other foreign assets. Failing to file schedule FA along with ITR would mean violation of Black Money Act which would mean a flat penalty of Rs 10 lakh for each defaulting year.
How to bring down the tax outgo significantly by claiming all the deductions available to him. Use HRA exemption; NPS benefits offered by company, LTA and medical insurance to reduce income tax outgo. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their income and investments.
An updated income tax return (ITR-U) can be filed within 24 months from the end of the relevant assessment year, provided the deadline for filing either revised ITR and belated ITR (if applicable) is already over. Further in certain specified instances ITR-U cannot be filed.
The Central Board of Direct Taxes (CBDT) has extended the deadline for income tax audit report submission by a fund, educational institution, hospitals and others to October 31, 2023 from September 30, 2023. However for those individuals with business or professional income above the specific limits, the deadline remains the same i.e. September 30, 2023.
Various types of income taxes like advance tax, self-assessment tax others can be paid on the e-filing income tax return (ITR) portal by using various payment methods including two offline methods- RTGS/NEFT and bank challan. While in RTGS/NEFT option any bank can be used to pay tax, in the bank challan option only authorised banks are allowed.
For those small businessmen and professionals who wants to register for GST but can't do so due to the burden of various GST law provisions, opting for composition scheme under GST makes sense. However in order to opt for it, an individual has to satisfy certain eligibility criteria and others.
In any case of change in bank branch, bank account account number, IFSC code, after last validation, you need to update account details on e-filing portal and revalidate it.
Recently many individuals have received an income tax intimation notice asking them to explain why had they claimed higher amount of deduction than mentioned in Form 16 or Annual Information Statement (AIS). The income tax department has also said that if the explanations are not satisfactory, then a tax demand notice will be sent.
Advance Tax Payment: The due date for second quarterly payment of advance tax is September 15 for those individuals who have an estimated net tax liability of Rs 10,000 for the financial year. However not everybody is liable to pay advance tax even if their tax liability is above Rs 10,000 for the financial year.
Advance tax instalment: Advance tax is income tax paid in advance during the fiscal year rather than at the end of the year. Advance tax is to be paid in four instalments, in the last month of each quarter on or before the 15th.
Under Section 80CCD(2), up to 10% of basic salary put in the NPS is tax deductible. One can also ask his/her company for common tax-free perks, such as LTA, reimbursement of newspaper bills and meal coupons. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their income and investments.
Transacting in virtual digital assets like cryptocurrency, non-fungible tokens (NFTs), others using Peer-to-Peer (P2P) mechanism carries risk. Hence experts advise to buy VDAs only through Indian KYC and other law abiding exchanges otherwise both the transacting parties i.e. buyer and seller stand at the risk of violating various Indian laws.
Anybody who wants to register or have to register for GST needs to fill up GST REG-01 form online on the GST portal website. This form has two parts- A and B. While part A is simple and easy to fill, it is part B which asks for specific operational details.
As on September 5, 2023, 6.98 crore ITRs for AY 2023-24 were filed, out of which 6.84 crore ITRs have been verified. The average processing time was 16 days in fiscal year 2022-23 and 82 days in fiscal year 2019-20, stated the PIB release.
Now it is possible to correct mistakes made in tax payment challan online via the e-filing ITR portal. This new feature was recently introduced by the income tax department and it allows changes of tax challans from AY 2020-21 (FY 2019-20) onwards. Read here to know how to use this feature.
The Central Board of Direct Taxes (CBDT) has notified a new Income tax form- Form 71. This form will help taxpayers resolve their problem of TDS claim when it was deducted in a wrong financial year. One need not approach the tax deductor and request them to revise their TDS return. Income tax department will directly help now.
The new rules are notified by the Central Board of Direct Taxes (CBDT) on August 18, 2023 and became effective from September 1, 2023 i.e., today. The new rules provide for inflation adjusted rental value of house certain conditions. Read on to know about the new tax rules and how they will impact your TDS and salary.
Social media has made it possible for just about anybody to earn money by posting content. However an individual needs to know what the income tax law and other laws say about such an income, so that one does not get into trouble. Read here to know about the details.
An income tax audit report has to be mandatorily uploaded on the income tax return (ITR) portal by September 30 for those who are required to conduct an income tax audit. However even if the deadline is missed, one still has to upload the audit report by paying a penalty.
There are various documents which an individual has to maintain following specific accounting principles and format in order to successfully complete an income tax audit. Further in cases of certain specified professionals like medical, legal, engineering, etc some additional documents are also required to be maintained in addition to the list of documents required for income tax audit.
Last year, the Central Board of Direct Taxes (CBDT) decreased the ITR verification time restriction from 120 days to 30 days from the date of return submission in order to speed up this procedure. The change came into effect from August 1, 2022.
Form 60 is required to be submitted in lieu of PAN if an individual does not have one but is conducting certain specific transactions like purchasing a car, etc. However income tax department will send an individual an SMS and email about updating one's PAN number to the reporting entity where Form 60 was given or apply for a PAN.
Under Section 80CCD(2), up to 10% of basic salary put in the NPS is tax deductible. There are some tax-free perks, such as a gadget allowance, meal coupons and reimbursement of expenses on books and periodicals that a salaried employee gets. Under Section 17(2), gadgets bought in the name of the company, and given to the employee for personal use, are taxed at only 10% of the value. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their income and investments.
Nitin Gupta, Chairman, Central Board of Direct Taxes (CBDT), has launched a revamped national Income Tax Department website at the ‘Chintan Shivir’, an event organised by the Directorate of Income Tax (Systems) at Udaipur, Rajasthan on August 26, 2023. This new Income tax website is mobile friendly and live right now.
The Income Tax Act, 1961 has mandated certain taxpayers to get their books of accounts audited and submit a tax audit report by September 30. This audit is different from audit done under any other Act like Companies Act, 2013, etc. Read here to know who is required to get their accounts audited for income tax purposes.
It may happen that an individual has incorrectly filed his ITR by July 31, 2023 for FY 2022-23 (AY 2023-24), and the ITR got processed and he/she got the income tax refund too. However now realising his/her mistake the individual wants to file an revised ITR to give back the excess income tax refund.
The taxation rules for debt mutual funds have changed from April 1, 2023. Most of the common debt investment options are taxed at the income tax slabs applicable to their income. However, LTCG on this debt investment option is still taxed at 10%. Read on to know which debt investment is this.
Certain category of businessmen and professionals are mandated by the Income tax law to get an income tax audit conducted by a chartered accountant. The last date for income tax audit is September 30, 2023 for FY 2022-23 (AY 2023-24). And the last date for ITR filing along with audit report is October 31, 2023.
In case an individual has not linked his/her PAN with Aadhaar by June 30, 2023 then in all probability it has got classified as 'inoperative' by now. An inoperative PAN will have the same effect as if no PAN exists and it cannot be quoted anywhere where PAN is required to be quoted.
Once the income tax return is processed by the tax department, then they can send you a tax notice. The notice can be in the form of acknowledgement (if your calculation matches with that of income tax department) or there may be additional tax demand notice. Here is how an individual should deal with the income tax notices in five steps.
he employer only takes care of the tax liability via TDS at the time of vesting. Any tax liability for dividend received and capital gains at the time of sale should be dispensed by the employee via advance tax payment.
Annual Information Statement (AIS) is an important document because many tax filers reconcile their own data with AIS. However do note that if one has paid any self-assessment tax while filing ITR for FY 2022-23 then the AIS for FY 2023-24 will show this and not AIS for FY 2022-23.
The Central Board of Direct Taxes (CBDT) has issued guidelines on how tax exempt portion from life insurance policies will be calculated (bought on or after April 1, 2023). This would mean that now maturity proceeds from life insurance companies will not be fully tax-exempt except in certain cases. Read on to know more about it.
Income tax is a tax levied directly by the central government on the incomes earned by the individuals and other non-individual entities such as Hindu Undivided Family (HUF), partnership firm and so on during a financial year. These various sources of income include salary, pension, capital gains, sale of financial investments, interest income, other incomes and so on.
Unlike the Goods and Services Tax (GST) Council where the Union Finance Minister and State Finance Ministers decide the rates, the income tax rates are announced by the Finance Minister during the year’s Union Budget.
The rate at which your total income earned during the year will be taxed depends on the slab in which your income falls. Over and above the income tax, a cess and surcharge is levied. The cess is payable by all taxpayers. For those earning more than Rs 50 lakh a year, a surcharge is levied between 10 percent and 37 percent.
The total income earned by a taxpayer during a financial year has to be reported to the government in the assessment year by filing income tax return (ITR filing).
Financial year is the year in which income is earned by a taxpayer; a financial year is between April 1 and March 31. Assessment year is the year immediately following the financial year for which the return is to be filed.
Income earned from various sources such as salary, pension, interest from fixed deposits (FDs), savings account, capital gains from sale of house, equity mutual funds, debt mutual funds and so on have to be reported in ITR.
