Tax notice, errors in Form 26AS: Around 40,000 TCS employees recently got a tax demand notice due to an error in the TDS amount shown in Form 26AS and Part A of Form 16. The error was showing due to their internal software glitch. If you got the same tax notice due to a mismatch in tax amount in Form 26AS/AIS and TDS certificates like Form 16, Form 16A etc., then here is what taxpayers can do.
NRI SGrB: Non-resident Indians can now invest in Sovereign Green Bonds (SGrBs) through the International Financial Services Centre (IFSC) which is located in Gandhinagar, Gujarat. If you are an NRI, you might wander whether you should invest in SGrBs or Green Fixed Deposits or normal Indian government bonds (G-Sec). Read here to know more.
Advance tax: The 2nd quarter of advance tax payment needs to be made on or before September 15, 2024. Calculations show that if you miss paying any advance tax then it can cost you more than 15% in additional interest. Read here to know more about advance tax and penalty under section 234.
Advance tax deposit online: The second installment of advance tax needs to be paid before September 15, 2024. The payment can be made either online or offline. The advance tax is required to be paid in four installments, with the 15th of the last month of each quarter being the deadline.
Income tax refund: No tax refund for identified taxpayers because their income tax return (ITR) has been identified by the 'Risk Management System (RMS) of the Income tax department. If your ITR is among the identified ITRs then no refund will be issued, unless you confirm it or file a revised ITR to fix the highlighted issue.
Non resident Indian (NRI) taxation: NRIs have to pay double the tax on the same income if their favourable DTAA rates and tax releif claim is rejected. This claim is rejected when the NRI does not submit Form 10F and Tax Residency Certificate (TRC) and also fails to claim foreign tax credit in their resident country. Read below to know more about Form 10F and TRC.
Share buy-back tax rules from October 1, 2024: The new share buy-back tax rules will come into effect from October 1, 2024. Many companies are flurrying the market with buy-back before the new rules become effective. The small and retail investors will lose much more due to new share buy-back tax rules.
Under Section 80CCD(2), up to 10% of the employee’s basic salary put in NPS is tax-free. This limit is higher at 14% for taxpayers like Roy who have opted for the new tax regime. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
Revised ITR: You can file a revised Income Tax Return (ITR) even if your ITR filed by the deadline (original ITR) is processed successfully with or without tax refund. Yes, revised ITR can be filed as per timelines given in Section 139(5) even after receiving an intimation under Section 143(1)," says Shalini Jain, Tax Partner, EY India.
ITR refund status:If you have paid an excess of tax for a specific financial year, you should anticipate receiving a refund on your income tax after submitting your income tax return (ITR). Nonetheless, the refund will only be granted once the tax department has processed your ITR and issued a notice confirming it.
Gold, a traditional symbol of wealth and prosperity in India, has long been a popular investment choice. The recent changes in capital gains tax rules introduced in Budget 2024 have significant implications for those who invest in gold. We delve into the new short-term and long-term capital gains tax rules and their impact on various gold investment avenues, including physical gold, gold bonds, gold mutual funds and gold ETFs.
Income tax refund pending: If income tax department does not process the income tax return (ITR), the taxpayer will not get their income tax refund dues (if any). The income tax laws mandate the deadline by which the income tax department must process the tax return. Read on to know the due date for the same.
Income tax notice: You may get a income tax notice by December 31, 2024 if the tax department found you have income which escaped assessment. This is because tax officials are analysing Form 15CC data to find out who has sent more than Rs 6 lakh abroad and there is a mismatch between the amount sent abroad and the amount declared as income in ITR.
Belated ITR fees: The government may have earned up to Rs 627 crore from collection of late ITR filing fees till August 22, 2024. As per rules a late filing fee of Rs 5,000 or Rs 1000 or nil is levied for filing a belated ITR after the due date. There were about 14 lakh ITRs filed between August 1, 2024 and August 22, 2024.
ITR processing time: Tax experts advise that usually, it takes an average of 15-45 days from the date of e-verification of the ITR for income tax returns to be processed. As per the regulation, income tax returns must be processed within nine months of the end of the fiscal year after you file them.
LTCG tax rate on property sale with no indexation: If a taxpayer does not avail of the Section 24 deduction of Rs 2 lakh on interest paid on a housing loan, then the interest cost can be added to the property price to inflate the purchase price. However, what if you opt for a new tax regime and claim no deduction of Rs 2 lakh? Can you still add interest cost to the purchase price to lower the LTCG and tax on it?
ITR filing: As per data from the ITR portal 73.71% of all the verified ITRs have been processed already. This means about 26% ITRs are yet to be processed. Could it be because these 26% ITRs need additional scrutiny or others? Read the story to know more about ITR filing.
These debt mutual funds taxation rules changed: The government has rationalised the capital gains taxation rules. The new tax rules will impact debt mutual fund investments made on or before March 31, 2024, to avail of the indexation benefit. Redemptions and transfers made on or after July 23, 2024, will be taxed at the new LTCG tax rate of 12.5% without indexation benefit, provided debt mutual funds were held for more than 24 months.
No indexation benefit on loss: The government has provided partial relief to the homeowners for properties bought before July 23, 2024 and sold after that. However, this relief is available only in the case of LTCG arising from the property sale. If the property is sold at a loss then there is no indexation benefit available.
Tax clearance certificate to travel abroad: Not all Indian citizens need to get an income-tax clearance certificate before leaving the country, contrary to some recent reports, as announced in a press release by the Press Information Bureau on August 20, 2024.
ITR refund: You won't get tax refund without verifying the filled up and submitted income tax return (ITR). As per CA Twinkle Jain, "If an ITR is not verified within this (the 30 day) period, it is considered invalid. This means that any tax refund claims associated with these ITRs will not be processed & the taxpayer may have to file the ITR again, resulting in a delay in the tax refund process."
Tax intimation notice under section 143(1): After the Income Tax Department has reviewed a taxpayer's income tax return, it will get in touch with the taxpayer via an Intimation under Section 143 (1). This Intimation informs the taxpayer whether their filed returns align with the tax computation conducted by the tax department.
The amendment tabled in the finance bill is a welcome move as it will provide an option to choose between LTCG tax of 20% with indexation or 12.5% without indexation for property. It would encourage honest tax payment, long-term investment and fair play. However, removal of indexation benefit for properties bought after July 23, 2024 and other Long Term Assets classes must be revisited. Here's why.
How to read income tax intimation notice under section 143 (1): The intimation notice under section 143(1) of the Income Tax Act, 1961, will be sent to the taxpayer's registered email address with the tax department. Additionally, the taxpayer will receive an SMS on their registered mobile number to notify them that the communication has been sent to the registered email address.
Budget 2024: Senior citizens have different financial needs and tax planning is a significant factor in financial planning for senior citizens. With this in mind, senior citizens need to know if any benefit has been given to them in Budget 2024. In this article we list out some of the benefits offered to senior citizens.
LTCG indexation benefit on sale of house property: The government has provided partial relief to the homeowners by providing an option of indexation benefit for properties bought before July 23, 2024. However, this benefit is available only to resident individuals and resident Hindu Undivided Families (HUFs). The capital gains indexation benefit on selling a property is not available to NRI for properties bought before July 23, 2024.
Income tax refund status: If you have filed your income tax returns for fiscal year 2023-24 and are eligible for a refund, you may not have received the funds in your bank account yet. If you've submitted ITR-2 or ITR-3 for that fiscal year, it is possible that you haven't received your tax refund. Your refund is issued after the Income Tax Department processes your verified ITR.
Income tax notice: The income tax department may send you a tax notice for AY 2018-19 (FY 2017-18) by August 31, 2024 if there is exists any income of Rs 50 lakh or more which escaped assessment. Budget 2024 amended the tax provisions to now reduce the time limit to send a section 148 notice.
New equity buyback rules: Budget 2024 amended the income tax laws on how share buybacks are taxed. The new laws announced in July will be effective from October 1, 2024. The new laws tax the share buybacks in a similar fashion as dividends are taxed now. The new income tax laws will impact most taxpayers negatively. However, certain taxpayers will gain as well.
ITR e-verification: Starting August 1, 2022, the Income Tax Department has shortened the deadline for e-verification or hard copy submission of ITR-V to 30 days, as per a notification issued on July 29. This implies that taxpayers must now verify their returns within 30 days from the filing date to finalize the process.
Income tax regime for TDS on salary for FY 2024-25: Many employees have already informed their companies about their choice of tax regime for deducting taxes from their salary in April 2024. However, the government has revised the income tax slabs in the July 2024 Budget. There is a need to allow salaried employees, especially those who have opted for the old tax regime, to choose their tax regime for TDS on salary again.
Tax refund: If you doubt the calculation taken by the income tax department in regard to your ITR then you have the option to file a rectification request. If the department has processed your income tax return then a section 143(1) intimation will be sent. This intimation will mention the tax refund amount.
Income tax refund: Even if you file your income tax return (ITR) before the deadline, there is no guarantee that the tax refund will come in your bank account soon. It is only after the ITR is processed, then tax refund comes. Know how 'refund re-issue' feature can help you in this case to get tax refund.
PAN–Aadhaar linking update: The TDS is withheld at an increased rate if the payee's PAN is not linked to Aadhaar. The Central Board of Direct Taxes (CBDT) has released a circular stating that the elevated TDS/TCS rate will not be applicable if the payee or collector has passed away before linking PAN and Aadhaar.
Mutual fund taxation after Budget 2024: Union Budget 2024 has significantly overhauled capital gains tax on various assets, including mutual funds. The holding periods for short-term and long-term capital gains have been rationalised to 12 and 24 months, respectively. Additionally, the indexation benefit on long-term capital gains has been removed, leading to a uniform tax rate of 12.5% for all asset classes. Short-term capital gains tax on equities and equity-oriented funds has been hiked to 20%. These changes will have a substantial impact on mutual fund returns.
How to check tax refund status: Here is a detailed step-by-step guide that outlines the process for checking your income tax refund status online. You can do this by visiting the e-filing portal or the National Securities Depository (NSDL) website.
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.
