Tag: Income Tax

Breather for charitable trusts, NGOs as CBDT again extends deadline for registration and renewal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Central Board of Direct Taxes (CBDT) has again extended the deadline for filing Form 10A/ Form 10AB under the Income-tax Act, 1961, to June 30, 2024, the government announced on April 25. The extension aims to facilitate smoother compliance procedures.

Form 10A is used during the initial registration or approval of a trust, institution, or NGO, while Form 10AB is necessary for subsequent renewals.

Previously, the CBDT had extended the deadline for filing Form 10A/ Form 10AB multiple times. Earlier, the last date for filing the form was extended to September 30, 2023.

The CBDT’s decision comes after the government received representations from various quarters, urging for more time beyond the last extended deadline. The extension applies to certain provisions of Section 10(23C), Section 12A, Section 80G, and Section 35 of the Act.

Also Read: Deductors can collect TDS at normal rates if PAN is linked to Aadhaar by May 31

The existing trusts, institutions, or funds, which failed to file Form 10A for assessment year (AY) 2022-23 within the previously extended due date, and later applied for provisional registration as a new entity and received Form 10AC, can now surrender the Form 10AC and apply for registration for AY 2022-23 as an existing entity in Form 10A until 30th June 2024, the government clarified.

Also, trusts, institutions, or funds whose re-registration applications were rejected solely due to late filing or filing under the wrong section code, may submit fresh applications in Form 10AB within the extended deadline of June 30, 2024.

The applications as per Form 10A/ Form 10AB must be filed electronically through the e-filing portal of the Income Tax Department.

Also Read: RBI plans curbs on suspect bank accounts to fight cyber fraud: Report

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

What is inheritance tax and how it works in countries like US

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Deductors can collect TDS at normal rates if PAN is linked to Aadhaar by May 31

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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For those who haven’t linked their Permanent Account Number (PAN) with Aadhaar, the tax deducted at source (TDS) rate is supposed to be double the normal rate. However, after numerous complaints, the burden of deducting excess TDS on the seller has been waived under certain circumstances.

The government’s recent move aims to ease the pressure on entities collecting Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) at regular rates.

This means that if a PAN became “inoperative” due to its non-linkage with Aadhaar and caused a problem with a tax deduction, the deductor won’t face penalties for deducting less tax than required.

This relief is, however, provided as long as the deductee links their PAN with Aadhaar and makes it usable again by May 31, 2024.

As a result, deductors are no longer liable to pay the difference in income tax rates.

This measure is a response to numerous notices issued to deductors for shortfalls in tax deduction due to inoperative PANs.

To address such instances, deductors should ensure that the PAN of the deductee is linked with Aadhaar, preferably by May 31, 2024, for transactions conducted until March 31, 2024.

It’s crucial to note that this relief applies only to transactions up to March 31, 2024.

Therefore, for transactions occurring after April 1, 2024, it’s essential to ensure that the PAN of the deductee is linked with Aadhaar and remains valid.

Deductors can verify the validity of PAN on the Income Tax portal.

Overall, this circular aims to simplify the TDS/TCS process and provide relief to deductors while promoting compliance with Aadhaar linkage requirements.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Direct Tax collections surge by 17.70% to ₹19.58 lakh crore in FY 2023-24

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Financial Year (FY) 2023-24 has seen a significant increase in Direct Tax collections, with provisional figures showing net collections at ₹19.58 lakh crore. This represents a 17.70% increase from the ₹16.64 lakh crore collected in FY 2022-23.

The Union Budget had initially estimated Direct Tax revenue for FY 2023-24 at ₹18.23 lakh crore. However, this was later revised to ₹19.45 lakh crore. The provisional Direct Tax collections have exceeded these Revised Estimates by 0.67%, and the original Budget Estimates by 7.40%.

Before adjusting for refunds, the Gross collection of Direct Taxes for FY 2023-24 stands at ₹23.37 lakh crore, marking an 18.48% growth from the ₹19.72 lakh crore collected in FY 2022-23.

Also Read: A small traders union sues Indian govt for loss of business due to payment deadlines

Breaking down the collections further, the Gross Corporate Tax collection for FY 2023-24 is ₹11.32 lakh crore, a 13.06% increase from the previous year’s ₹10 lakh crore. The Net Corporate Tax collection for the same period is ₹9.11 lakh crore, showing a 10.26% growth from the preceding year’s ₹8.26 lakh crore.

The Gross Personal Income Tax collection (including STT) for FY 2023-24 is ₹12.01 lakh crore, a 24.26% increase from the previous year’s ₹9.67 lakh crore. The Net Personal Income Tax collection (including STT) for the same period is ₹10.44 lakh crore, marking a 25.23% growth from the preceding year’s ₹8.33 lakh crore.

Lastly, refunds issued in FY 2023-24 total ₹3.79 lakh crore, a 22.74% increase from the ₹3.09 lakh crore issued in FY 2022-23. This completes the financial picture for Direct Tax collections in FY 2023-24.

Also Read: Online gaming industry hopes GST Council will reconsider decision to levy 28% tax

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Received an SMS on TDS from Income Tax Dept? Do not panic

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Some salaried taxpayers across the nation may have received messages from the Income Tax Department regarding their total tax deducted at source (TDS). The message, sent as an SMS, includes details of TDS deducted by the employer for the quarter ending December 31 and the cumulative TDS for the financial year 2023-24.

The message, which reads, “Total TDS by employer of PAN xxx for Qtr ending Dec 31 is ₹xxx and cumulative TDS for FY 23-24 is ₹xxx. View 26AS for details. ITD Team,” aims to provide acknowledgment of the TDS deposited during the final quarter and the previous financial year.

However, some taxpayers could have misinterpreted this message, speculating whether they owe more taxes to the department.

This SMS alert service was introduced at the end of 2016 with the purpose of notifying taxpayers about their total TDS deductions.

It serves as a useful tool for individuals to match their office salary slips with the details provided in the message.

Wait till June 15

In fact, salaried individuals will have to wait till mid-June to file income tax returns (ITR) for the financial year 2023-24 as this is the time when employers issue Form 16.

As per the rule, employers must issue Form 16 every year on or before June 15, soon after the financial year in which the tax is deducted.

However, taxpayers eager to file early can use the e-filing portal enabled by the Income Tax Department.

Despite this option, experts suggest waiting for a while to ensure that Form 26AS and AIS are duly updated, thereby streamlining the ITR filing process.

Form 16, a certificate issued by employers, contains essential information required for ITR filing, including details of TDS and tax collected at source (TCS) for various transactions between the employer and employee.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tax dept’s new update on TDS and refunds: Here’s what taxpayers should do

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Income Tax Department has recently announced an interim action plan for the financial year 2024-25. This focuses on streamlining processes related to Tax Deducted at Source (TDS), refunds, and dispute resolutions.

The move aims to enhance efficiency and transparency in tax administration, with potential benefits for taxpayers across the country.

Identification of potential prosecution cases and faster refund disposal

One of the pivotal aspects of the action plan is the identification of potential cases of prosecution due to short-payment of TDS.

This means tax department will scrutinise these closely and may take action against the offenders for non-compliance with tax laws.

Additionally, efforts will be made towards expediting the approval of refunds, providing much-needed relief to taxpayers.

Cases where seized assets are due for release are slated for resolution by June 30, 2024, adding a timeline-driven approach to asset management and refunds.

Proposals and appeal disposal

The plan also emphasises the finalisation of proposals pending as of March 31, 2024, and the disposal of a substantial number of appeals by June 30.

The priority will be given to appeals filed before April 1, 2020, indicating a systematic approach to clearing long-standing cases and enhancing the efficacy of the appeals process.

The action plan also addresses the resolution of audit objections, aiming to settle a significant portion of them by June 30, 2024.

Measures for taxpayers

Sandeep Sehgal, Partner-Tax at AKM Global said taxpayers should file applications for pending refunds directly with the assessing officer, streamlining the refund process.

By doing so, they can expedite the refund process.

Furthermore, Sehgal highlighted another important commitment made by the tax department regarding applications for Nil/Lower Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) Certificates.

The commitment entails resolving these applications within a month of their receipt starting from April 1, 2024.

This assurance indicates that taxpayers can expect quicker processing of their requests for lower TDS or TCS deductions, which, in turn, can lead to better management of their cash flow.

Overall, these measures aim to provide relief to taxpayers and enhance their experience with the tax filing process.

ALSO READ | Income Tax Department clarifies no ‘special drive’ to reopen cases for HRA scrutiny

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Income Tax Department clarifies no ‘special drive’ to reopen cases for HRA scrutiny

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Central Board of Direct Taxes (CBDT) has reassured taxpayers that no special drive is underway to scrutinise all house rent allowance (HRA) claims. Clarifying recent reports, the CBDT stated that data analysis was specifically focused on select high-value cases of mismatch between rent payments by employees and rent receipts for the financial year 2020-21.

The department stressed on its commitment to address discrepancies without causing undue disruption to taxpayers.

This statement comes amidst media reports suggesting widespread reopening of cases related to HRA claims.

In its official press release, the Income Tax Department acknowledged instances of mismatch between rent payments by salaried employees and receipts by landlords for the financial year 2020-21.

CBDT clarifies that apprehensions about retrospective taxation on re-opening of cases on issues pertaining to HRA claims are completely baseless.

CBDT has reiterated that there is no special drive to re-open such cases, and media reports alleging large-scale re-opening by the… pic.twitter.com/5AfOtHeK9g

— Income Tax India (@IncomeTaxIndia) April 8, 2024

“The data analysis was carried out in some high-value cases of mismatch between the rent paid by the employee and receipt of rent by the recipient for the FY 2020-21. This verification was done in a small number of cases without re-opening bulk of cases, especially since Updated Return for FY 2020-21(AY 2021-22) could have been filed by the taxpayers concerned only till 31.03.2024,” the statement read.

House rent allowance (HRA) is an integral part of salary income and is subject to taxation.

Taxpayers can claim tax exemption for HRA received if they reside in rented accommodation, provided they furnish original rent receipts as proof.

However, this exemption does not apply to taxpayers who have opted for the new tax regime under Section 10(13A) of the Income Tax Act.

ALSO READ | Income tax return filing for FY23-24: Form 16 issue date, ITR forms and more

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Income tax return filing for FY23-24: Form 16 issue date, ITR forms and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Salaried individuals will have to wait till mid-June to file income tax returns (ITR) for the financial year 2023-24 as this is the time when employers issue Form 16. As per the rule, employers issue Form 16 every year on or before June 15, immediately after the financial year in which the tax is deducted.

This timeline consequently pushes the ITR filing window for salaried individuals to around mid-June.

Nevertheless, taxpayers eager to file early can utilise the e-filing portal enabled by the Income Tax Department.

Despite this option, experts counsel waiting for a while to ensure that Form 26AS and AIS are duly updated, thereby streamlining the ITR filing process.

Form 16, a certificate issued by employers, encapsulates essential information required for ITR filing, encompassing details of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) for various transactions between the employer and employee.

ClearTax, a prominent income tax e-filing website, delineates Form 16 into two parts: Part A and Part B.

Part A furnishes crucial particulars such as the employer’s name, address, TAN and PAN, employee’s PAN, and a quarterly summary of tax deducted and deposited, duly certified by the employer.

On the other hand, Part B offers a detailed breakdown of salary, exempted allowances under section 10, and deductions permitted under the Income Tax Act.

In the event of misplacement, individuals can request a duplicate Form 16 from their employer.

Furthermore, in cases of job changes within a financial year, each employer issues a separate Part A of Form 16, covering the duration of employment.

Traditionally, taxpayers are mandated to file their ITR by July 31 of any given year, unless extended by the government. The act of filing ITR allows individuals to claim refunds for excess tax paid/deducted during a financial year.

The Income Tax Department has established a dedicated portal for e-filing income tax returns, which has recently notified six forms for this year’s filing, along with ITR-V (verification form) and ITR acknowledgement form.

These forms cater to various categories of taxpayers, with Sahaj (ITR-1) being applicable to residents with a total income up to ₹50 lakh, encompassing income from salaries, one house property, other sources, and agricultural income up to ₹5,000.

Similarly, there is ITR-3 which is applicable for income from business or profession and ITR-4 for the presumptive method of taxation such as for freelancers.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ITR e-filing option available for taxpayers but experts warn against rushing: Here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Income Tax Department’s decision to release income tax return (ITR) forms 1, 2, 4, and 6 on the e-filing portal from April 1, 2024, marks a shift towards improving taxpayer services. Notably, over 46,000 returns have already been filed for the financial year 2023-24 (assessment year 2024-25) as of April 5, 2024.

Of these, 42,598 returns have been verified and 2,940 verified ITRs have been processed, according to information available on the tax department portal.

However, experts emphasise exercising prudence amid the early availability of forms.

One major concern highlighted by tax professionals is the lag in updating crucial documents such as the Annual Information Statement (AIS) and Form 26AS, according to Indian Express report.

These documents, pivotal for accurate tax filings, remain unrefreshed until March 31, 2024, the final day of the previous financial year.

The AIS, which encapsulates financial transactions from reporting entities like banks and financial institutions, undergoes updating post-March 31.

Consequently, the comprehensive financial picture crucial for precise tax calculations only emerges after this updating process.

Similarly, Form 26AS, crucial for verifying tax deducted at source (TDS), awaits updating until the income tax department processes TDS returns.

Rushing into filing before these crucial documents are refreshed could lead to errors and discrepancies.

Additionally, employers are yet to issue Form 16 for the financial year 2023-24 too.

Form 16 is a certificate issued by an employer and it contains the information that one needs to file the income tax return (ITR). These certificates provide details of TDS/TCS for various transactions between the deductor and deductee.

As per the rule, employers must issue it every year on or before June 15 of the next year, immediately after the financial year in which the tax is deducted.

It is mandatory to issue Form 16 to taxpayers.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Life Insurance gets GST notice of ₹103 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Life Insurance Co Ltd has received a goods and services tax demand notice of nearly ₹103 crore from the state tax department of Gujarat for the assessment year 2018-19 (April–March), the company notified the exchanges today.

While the tax demand is ₹51.23 crore, the interest on the tax is ₹46.11 crore, and the penalty is ₹5.12 crore, the filing said.

The demand notice was on account of excess availment of input tax credit, short reversal of proportionate input tax credit towards exempt supplies, and short payment of GST on outward supply by treating the adjustments made to its turnover as a part of taxable turnover, the filing said.

“The said order is appealable before the appellate authority. The company will file its appeal within the specified period,” the company said.

#JustIn | #HDFCLife gets GST, penalty order of ₹102.5 cr for April 1, 2018 to March 31, 2019 period pic.twitter.com/xsUd5c1jtN

— CNBC-TV18 (@CNBCTV18Live) April 5, 2024

At 2.27 pm, HDFC Life shares were up 0.7% at ₹627 on the National Stock Exchange.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow