Tag: Income Tax

ELSS versus ULIPs: Which tax saving option is for you?

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

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One of the big debates about tax saving investment is the unit linked insurance scheme (ULIP) versus the equity linked savings scheme (ELSS) debate. There are some similarities and some differences too. For example, both ELSS and ULIPs combine tax saving with a long term investment perspective. Both ELSS and ULIPs give you an access to equities and both entail a lock in. However, there are some differences on the tax front, especially after the Union Budget 2018-19. Also in terms of loading and costs there is a distinct difference between ELSS and ULIPs. So how should one take a decision?

How ULIPs became a victim of mis-selling over the years?

ULIPs have an interesting history in the Indian markets. To begin with, most investors did not realise the difference between a ULIP and a mutual fund. The problem was that it was largely mis-sold. Investors thought they were paying for the investment product whereas they were also paying for the insurance cover. Above all, the methodology of charging them was not too transparent. Union Budget 2018-19, it is believed, could give ULIPs some hope of a revival. The imposition of the 10 percent tax on long term capital gains (LTCG) earned on mutual funds could be a trigger for ULIPs. Remember, ULIPs have been exempted from the ambit of LTCG tax and that will only be applied to direct equities and equity mutual funds.

Forget the Union Budget; ELSS still can beat ULIPs by a margin

While it is true that the Union Budget 2018-19 did impose LTCG on ELSS but spared ULIPs, that is unlikely to make a substantive difference to the final calculations. There are eight reasons why ELSS could continue to be the tax saving instrument of choice.

1. A good investment product is defined by its transparency with regards to the loads, initial costs and the transparency of the portfolio. ULIPs really do not cover themselves in glory. Data about ULIPs is not as widely available and tracked as compared to mutual funds. Hence, it is difficult to find the best performing ULIP suitable for you.
2. Should you buy ULIPs because it combines insurance and investment? That is never a great idea fundamentally. From a financial planning perspective it is always better to keep your insurance and investments separate. The best thing is to buy ELSS for your tax saving and growth and buy a term policy separately for life cover.
3. A logical corollary to the previous point. When you buy ELSS and a term policy, remember that both are eligible for exemption under Section 80C of the Income Tax Act. So you are really not losing out on anything.
4. You need to ask yourself a more fundamental question. Will there really be a major impact on your returns. Mutual Funds have consistently delivered good performance over the last 20 years.
5. ULIPs have a lock-in period of 5 years. ELSS is liquid after completion of 3 years. You effectively get the same benefit in a span of 3 years. You can choose to re-invest in a different ELSS scheme after 3 years if you are not happy with the performance.
6. This is interesting. Over a 15 year period, you can recycle your ULIP investment only for three tax benefits. At the same time, your ELSS can be recycled five times in the same period. That surely makes your ELSS a better tax planning tool in the long run.
7. Once you start a ULIP, you have to keep paying premium every year till the defined premium paying term. Whereas, in ELSS, you can choose to make an investment as per your choice. There is no compulsion to continue it every year.
8. The ULIP can become as profitable as a mutual fund only after 10 years of holding, if you look at it on a post-tax basis. Till then the upfront loads on ULIPs are too high. Therefore, there is no advantage in opting for ULIPs over ELSS even after considering LTCG Tax.

Notwithstanding the LTCG tax on ELSS funds, they are a more useful product for your financial plan compared to ULIPs. The choice is quite clear for you!

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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 collection at record Rs 10.03 lakh crore, says CBDT

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

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Income Tax collection in the country stood at a record Rs 10.03 lakh crore during 2017-18, the Central Board of Direct Taxes (CBDT) on Friday said.

Addressing a two-day conference of Income Tax Administrators of Eastern Zone, Shabri Bhattasali, member of CBDT said that during 2017-18, a record number of 6.92 crore I-T returns were filed, which was 1.31 crore more than 5.61 crore returns filed in 2016-17.

The I-T Department added 1.06 crore new return filers during 2017-18 and aims to add 1.25 crore new filers for the current year. In the North East region, this number was 1.89 lakh, she said.

L C Joshi Ranee, principal chief commissioner of Income Tax, North Eastern Region said that Rs 7,097 crore tax was collected from the region during 2017-18.

This is 16.7 per cent higher than Rs 6,082 crore collected in the preceding year, Ranee said.

He said the target in the region for 2018-19 has been fixed at Rs 8,357 crore, 17.75 per cent more than last years collection.

Stating that the department is committed to meet the target tax collection, increase taxpayer base and deliver superior services, ‘Aaykar Seva Kendras’ have already been opened in 22 out of 29 stations in NER.

New offices are being opened in far-flung areas to deliver taxpayer services, he added.

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

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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

Only 0.35% of income tax returns filed last year to be scrutinised: CBDT

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

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The income tax department today said it has picked up only high tax evasion cases for scrutiny, which account for around 0.35 percent of the 6.86 crore returns filed for Assessment Year 2017-18.

Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said that the department has faith on the income tax payers, but will not allow evaders to scot free.

“We have increased the tax base and have full faith on taxpayers. Last year, we got 6.86 crore returns and I have picked up only 0.35 percent cases for scrutiny. This means that 99.65 percent of the returns filed can be at peace,” Chandra said at an Assocham event here.

He said out of this 0.35 percent cases picked up for scrutiny, 0.15 percent are for ‘limited scrutiny’ and 0.20 percent are for ‘full scrutiny’.

“This shows that in only high tax evasion cases, we will go for scrutiny,” Chandra said.

A scrutiny procedure in the income tax system pertains to a case where a taxpayer is required to provide a number of documents to the assessing officer (AO) after his or her case is picked up for a threadbare examination after study of their tax returns.

Scrutiny of I-T returns has been an issue of grievance for many assessees.

Earlier about one percent of the income tax returns filed were picked up for scrutiny. This has now been brought down to 0.35 percent.

Chandra said less number of cases being picked up for scrutiny means that the tax department has full faith on people. “We are also making our enforcement unit stronger so that if there is a case of tax evasion, that will be dealt with severely”.

The tax authorities have filed 4,700 cases for prosecution last year on the basis of data with the department, he added.

“You can send your money to any tax haven or any country but we have also got system of automatic exchange of information with many countries. Nobody is going to escape, we have information. People (tax evaders) think that boundaries are too far off, but the economic boundaries of different countries are very close to each other,” Chandra said.

The department will further simplify tax filing norms to help India improve its ranking in the Ease of Doing Business Index, the chairman said.

“Compliance will have to be better. Enforcement will have to stronger. Based on the data with us, we are taking enforcement action to instill some fear in the mind of tax evaders,” Chandra added.

In 2017-18 fiscal, the CBDT has collected Rs 10.03 lakh crore revenue on account of income tax and corporate tax, a growth of 18 percent over last year.

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 Filing: Is today the last day to file your returns?

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

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People who have not yet filed their Income Tax returns may be scrambling as today is the supposed deadline for the filing. However, they can now breathe more peacefully as the deadline has been extended to August 31.

The development comes after The Central Board of Direct Taxes (CBDT) last week made the decision to extend the due date for filing of Income Tax Returns from July 31.

Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the ‘Due Date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers.

— Ministry of Finance (@FinMinIndia) July 26, 2018

“Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the ‘Due Date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers,” tweeted the Ministry of Finance in its twitter account.

The decision is expected to aid thousands who are yet to file the returns for the previous fiscal year, mainly due to the long process it takes to make the filing.

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

Five things you need to know before investing in ELSS

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

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Among the various options that are available to save tax, one of the most promising is equity-linked savings schemes (ELSS).

ELSS are diversified equity mutual funds that invest a major chunk of your money in equity and equity-related securities. The fund manager looks for securities of companies which have a strong growth potential and a resilient business model.

ELSS funds offer you a convenient way to avail tax advantage coupled with trying to generate higher returns by harnessing the potential of the equity markets.

Investing in ELSS funds makes you eligible to avail tax deduction of up to Rs 1.5 lakh under section 80C of the Income Tax Act, 1961.

Things to keep in mind as an investor

ELSS funds happen to be the most efficient way to grow wealth and enjoy tax benefits. However, there are certain things you need to keep in mind before investing in ELSS.

1. Good way to get exposure to equity markets

It might be possible that you desire to invest in equities but don’t know where to start. Try ELSS funds as your first step. As compared to directly investing in stock markets, ELSS funds are an ideal way to get exposure to equities.

Along with professional fund management, you get the benefit of a well-diversified portfolio at a nominal initial investment. You may initiate a systematic investment plan (SIP) of as low as Rs 500 and stay tension free from timing the market.

One thing that you need to be aware of is that ELSS comes with a lock-in period of three years. In case you can block your surplus funds for such period, ELSS funds is a wonderful way to enjoy potential of equity stocks.

2. Lock-in period of investment

Among all other tax-saving products offered under Section 80C, equity linked savings schemes (ELSS) has the shortest lock-in period. It has a lock-in period of 3 years which means that you cannot redeem your investment before completion of 3 years. Comparatively, a Public Provident Fund (PPF) has a lock-in period of 15 years and National Savings Certificate (NSC) comes with a lock-in period of five years.

Having said that, you should not perceive ELSS funds as a short-term investment haven. ELSS, being an equity investment, need you to have a long-term investment horizon of at least 7 to 10 years. Additionally, you have to be goal-oriented while investing in ELSS funds to ensure that you can make the most of the investment.

3. Risks involved in investment

ELSS funds invest mostly in equity stocks of companies. Equity funds carry a higher risk of fluctuation in Net Asset Value (NAV). Owing to this, ELSS funds may seem a risky proposition to a budding investor. However, this should not deter you from taking the benefit of such investments.

All you need to do is stay invested for a longer investment horizon. As compared to other asset classes, equity funds have found to give above average returns in the long run. It does this by overcoming the volatility which the fund returns undergoes in the short run.

4. Maximum tax exemption limit

Section 80C is an extensive section which includes numerous investment avenues, like Employees Provident Fund (EPF) and life insurance policy, that are eligible for tax deduction. The maximum tax exemption limit available under Section 80C is Rs 1.5 lakh. If you have already claimed some of the exemption via other investments, then your entire investment in ELSS may not be available for deduction. Thus, before finalising your investment amount do remember to perform some basic calculations to make an informed decision.

5. Expectation of maximum returns

Being an equity-oriented investment, ELSS funds have the potential to generate higher returns than other investment avenues. But you cannot be unrealistic about returns on investment. Moreover, there are no guaranteed returns in equities. The fund performance may vary across different time horizons. Only when you stay invested for a longer investment horizon, could you hope for higher returns.

Conclusion

The best way to approach ELSS funds is to make a detailed plan at the start of the financial year. Don’t postpone your tax-saving investments late in the year. A goal-oriented and planned approach will help you to select the right ELSS fund that suits your requirements.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

Madras HC allows nine petitioners to file income tax returns without Aadhaar

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

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The Madras High Court on Tuesday permitted petitioners, including lawyers, academicians and environmental activists to file their income tax returns manually without quoting the Aadhaar number.

A division bench of Justices M M Sundresh and Anand Venkatesh passed the interim order noting that since the constitutional validity of the Aadhaar itself was yet to be decided, the petitioners could be allowed to file I-T returns without the Aadhaar.

The Supreme Court had on May 10 reserved its verdict on a batch of pleas challenging the constitutional validity of the centre’s flagship Aadhaar scheme.

Senior advocate Arvind P. Datar, who argued on behalf of the petitioners, requested for the intervention of the High Court as the systems were not accepting e-returns without Aadhaar linkage.

Datar pointed out that Section 7 of the Aadhaar Act makes it mandatory to have a Aadhaar card to avail certain government subsidies but since the petitioners before the court were not interested in availing those subsidies, they could not be compelled to obtain Aadhaar cards and submit the details either to the income tax department or any other agency.

Additional Solicitor General G. Rajagopalan cited the Supreme Court’s ruling in June last year, wherein the apex court upheld the validity of Section 139AA of the Income Tax Act, which requires linking of IT returns with Aadhaar, in Binoy Viswam’s case.

(With inputs from PTI)

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

New income tax norms can cost the govt Rs 1,000 crore, says report

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

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The Central Board of Direct Taxes’ (CBDT’s) decision to not pursue pending cases of income tax demand below Rs 20 lakh can cost the exchequer more than Rs 1,000 crore, reported Business Standard .

As per the new rule, the tax department will have to withdraw 90,356 appeals pending before the Income Tax Appellate Tribunal (ITAT) and high courts, the report said citing an unnamed senior tax official.

The move aims to reduce the litigation process by 50 percent and allow the tax department to focus on fewer, but important cases, to recover more dues, the official told the newspaper.

The new limits are Rs 20 lakh, Rs 50 lakh and Rs 1 crore to file the appeals.

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

Seven necessary steps to follow while filing your Income Tax Return

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

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The due date for filing ITR for financial year 2017-18 (assessment year 2018-19) is July 31, 2018. You don’t have much time left and you need to go through these points to ensure a hassle-free tax filing.

“There’s another reason why you need to file ITR before July 31, 2018. As per the new tax law, there’s a penalty of Rs 5,000 if the return is filed after July 31^st but before December 31^st 2018. After December 31^st 2018 the penalty is Rs 10,000,” said C.S.Sudheer, chief executive officer and founder of IndianMoney.com

1  When to file ITR?

When your income from all sources is above the minimum tax exemption limit, you have to file ITR. The tax exemption limit is Rs 2.5 Lakhs a year for a citizen below 60 years. It’s Rs 3 Lakhs for a citizen between 60-80 years and Rs 5 Lakhs for a citizen above 80 years.

Keep your PAN handy before filing ITR. Get an Aadhaar if you don’t have one as quoting Aadhaar is compulsory when filing ITR.

Income can be categorized under five heads:

•  Income from salary
•  Income from house property
• Income from capital gains
• Income from business and profession
• Income from other sources

  2  Keep Documents Handy

Keep your Form 16 Ready: Form 16 is the certificate issued by your employer which gives details of the salary paid to you and TDS (tax deducted at source) deducted on this salary and deposited on your behalf with the tax authorities.

“If your employer has deducted TDS he has to furnish the Form 16. You need the Form 16 when filing ITR. You can still file ITR without Form 16, but it’s great if you have it,” said Sudheer.

Check and Verify Form 26AS: You can assess the Form 26AS which is an annual consolidated tax statement, from the Income Tax Website by using PAN (Permanent Account Number). Form 26AS contains details of various taxes deducted from your income by deductors. The deductors could be your employer who deducts TDS and pays it on your behalf to the Government or a bank which deducts TDS on fixed deposit interest income.

The TDS details in the Form 26AS must match with the details of the tax paid as shown in Form 16. If there is a mismatch contact your employer and tax authorities to resolve the discrepancy. You can download Form 26AS from the TRACES website.

Keep bank account details handy: Keep details of bank account numbers and the IFSC codes when filing ITR. Having a bank account statement is good as you can easily declare interest income from savings bank accounts.

Keep documentation of tax saving investments and expense: Keeps your tax saving investment and expenses documents ready to ensure accuracy in the filing. This makes sure you don’t miss any information that might help save tax in the form of lower tax payouts or higher tax refunds.

Some common Tax saving proofs:

• EPF, NPS, ELSS, PPF, NSC, SCSS and other tax saving investments.
• Premium receipts on life and health insurance plans.
• Receipts of tuition fees paid for up to 2 children.
• Documents showing principal and interest paid on the home loan.
• Rent receipts and medical bills on self or dependents
• Donation receipts

3  Calculate Taxes

Compute Short Term Gains: If you are trading in shares or mutual funds, you must have made profits called short-term capital gains. The profits/gains got by selling shares/mutual funds within a year are called short-term capital gains. In case of debt funds, short-term capital gains are within 3 years or less.

“Short term capital gains are not subject to TDS and you have to calculate taxes yourself. You can download the capital gains statements from individual mutual fund houses and add them up to calculate short term capital gains,” said  Sudheer.

No long-term capital gains on equity: For the FY 2017-18 (AY 2018-19) there’s no tax on LTCG for equity-oriented funds if you have held them for a year or more. “The new rules regarding LTCG for equity schemes announced in Budget 2018 are applicable from AY 2019-20,” said Sudhir.

Standard Deductions is not applicable: The new standard deduction of Rs 40,000 a year on salary income is not applicable for FY 2017-18 (AY 2018-19). You can claim deductions on the transport allowance at Rs 19,200 a year and the medical reimbursement at Rs 15,000 a year.

Make sure you get all the calculations right. The wrong numbers could mean the wrong taxes and a lot of problems.

4  Choose the correct ITR Form

You have to choose ITR-1 (Sahaj) if you have income from salary/pension, Income from one house property, income from other sources other than winnings from lottery/horse racing. You can file ITR-1 only if income is less than Rs 50 Lakhs a year. If you satisfy all the previous conditions but have an income of more than Rs 50 Lakhs a year, file ITR-2. This is also used for income from capital gains, foreign income or agricultural income more than Rs 5000 or if income from a spouse/child is clubbed with your income.

If you have income from business or profession file ITR-3. If you have income from a business or profession and opted for the presumptive income scheme then file ITR-4 (Sugam).

5  Make use of Tax Deductions under Chapter V1-A

If you have invested in certain tax saving investments like PPF, NSC, SCSS, ELSS, your contribution to EPF, premiums paid on life insurance plans, tuition fees up to 2 children, repayments on the principal portion on home loan EMIs and some other tax saving investments, you are eligible for a tax deduction under Section 80C up to Rs 1.5 Lakhs a year. This is a collective deduction on all the tax saving investments/expenses.

You also enjoy deduction under various Sections like Section 80D, 80DDB, 80G, 80E, 80DD, 80GG, 80EE, 80TTA, 80U and so on. Section 80 deductions are called Chapter V1-A. Check your eligibility under various sections to avail tax deductions. You also enjoy deduction on interest repayments on home loan EMIs up to Rs 2 Lakhs a year under Section 24. There are other Sections too which help you save tax.

“You have to add up income from all the heads listed above.  This is your gross total income. From this gross total income deduct tax exemptions and deductions under Section 80C and beyond. The resulting number is the income you have to pay tax. An Indian resident earning more than Rs 3,50,000 / year, is entitled to claim rebate under section 87A. Rebate under section 87A is allowed up to a maximum of Rs 2500,” said Sudheer.

6  File ITR

• Log on to the IncomeTaxIndiaeFiling.gov.in and register on the website. You have to provide a PAN, Name and DOB, and choose a password. PAN is your user ID.
• Click on the relevant ITR Form and choose the Financial Year.
• Download the applicable ITR Form.
• Open Excel Utility and fill up the Form by entering details using Form 16.
• Check the tax payable by clicking ‘calculate tax’ tab.
• Confirm data by validating the ‘validate’ tab.
• Generate XML File and save it on your desktop.
• Upload the saved XML File on ‘upload return’ on the portal’s panel.
• A pop-up will be displayed asking you to digitally sign the file.

7  Verify ITR

Don’t forget to verify ITR after E-Filing through ITR-V. ITR-V is the Income Tax Return – ‘Verification’ Form. This can be done through Aadhaar Card, Net Banking, or the Electronic Verification Code process on your mobile number and email.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

I-T Department set to collect over Rs 60,000 crore

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

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The Income Tax Department today said it is set to collect Rs 60,845 crores during this financial year against Rs 49,775 crores mopped up last year from Andhra Pradesh and Telangana.

Principal chief commissioner of income-tax in the two States S P Choudhury said, state-owned NMDC Limited and Andhra Bank have been the top corporate tax payers in the region.

“For 2018-19, the target for the region is Rs 60,845 crores as against Rs 49,775 crores during 2017-18. As many as 8,13,759 new returns were received from the region and the target for the current fiscal is 10.13 lakhs,” he told newsmen.

The region had 36.1 lakh tax payers last year. Replying to a query , he said a woman working in the information technology sector in the city drew a salary of Rs nearly 30 crores during the 2018 under salaried employees category. He said approximately 30 percent of that income was taxed.

As many as 83 properties have been attached under the newly introduced Benami Property Transactions Act and also notice was issued in 108 cases till end of June 2018 under the Black Money Act, 2015, the I-T Department said in a press release.

Last year, income tax sleuths seized Rs 40.95 crores. This year, Rs 14.28 crores have so far been seized, it said. The undisclosed income in 2017-18 was Rs 1,166.97 crores and it was Rs 285.70 crores so far this year, the release said. In 2107-18, 415 surveys were conducted leading admission of unaccounted income of Rs 589.41 crores, it said.

In three cases, defaulting assessees were convicted and arrest warrants were issued in seven cases, it added.

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

Don’t know if you have to file income tax returns? Check this out

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

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Based on conversations with some of my salaried friends, I gather that most employees believe they don’t need to file their income tax return (ITR) if income tax has already been deducted from their salaries.

Most of them assume that the deduction of tax at source is nothing but their employer filing their ITR. Even retired individuals feel that as the bank has already deducted tax on the fixed deposit interest, they are not required to file their ITR. It is not so.

Filing your income tax return and paying the tax you are due to pay are two different responsibilities and both have to be discharged appropriately. People are also under the impression that if I fail to file the return by July 31, I cannot do it later.

In light of all this confusion, let us try and understand who needs to file income tax returns. This discussion is restricted to provisions applicable to an individual and does not cover other categories of tax payers.

Gross total income exceeding basic exemption limit

You are required to file your income tax return if aggregate of all your income before deduction under various sections of chapter VIA like 80 C, 80 CCC, 80 CCD, 80 D, 80E, 80G, 80 GGA, 80 TTA exceeds the basic exemption limit. These sections deal with deductions available for various investments or payments made by you like PPF, NPS, ELSS, NSC, repayment of your home loan principal, school fee, life insurance premiums, mediclaim premiums, donations, interest on education loan, rent paid by self employed etc.

Section 80 TTA allows you a deduction for interest earned on your saving bank account. The basic exemption limit for the year ended March 31, 2018 is Rs 2.50 lakh for an ordinary individual, Rs 3 lakh for a resident individual of over 60 years, referred to as senior citizen and Rs 5 lakh for an resident Individual above 80 years referred to as super senior citizen.

While arriving at the basic exemption limit for this limited purpose of filing of your ITR, you have to add the exemption available under Section 10(38) for long term capital gains on listed equity shares and units of equity oriented scheme. So effectively you may not have taxable income after the specified deductions or exemptions and thus have no tax liability ultimately, you still have to file your income tax return.

Assets or signing authority outside India by resident taxpayers

You are also required to file your income tax return in case you are resident in India for tax purposes and own any asset outside India in your own name as beneficial owner or have interest in any asset outside India or even when you are an authorized signatory for any account located outside India.

Please note that the asset which you may own outside India may be an immovable asset as well as movable asset. So this will apply to you without you noticing it. For example if you had gone outside India on deputation or employment and had opened a bank account and forgot to close it. This applies to you even if there is no money left in the bank account there.

Likewise if you have invested in shares, bonds or mutual fund of foreign companies, you are required to file ITR irrespective of your income level for the year. So you will have to file the ITR in case you have received employee Stock Options (ESOPs) from a foreign company which is holding company of your Indian employer.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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