INCOME TAX LIABILITY

New tax regime to old tax regime: How to choose old income tax regime when filing ITR for FY2023-24

New tax regime to old tax regime: Starting from April 1, 2023, if a taxpayer has not opted for the old tax system, their employer will deduct tax from their salary according to the new tax system. This change is because the new tax system will be the automatic choice for the fiscal year 2023-24.

Advance tax first instalment payment deadline: Who has to pay, penalty for missing last date

Advance tax payment: Individuals with a net income tax liability exceeding Rs 10,000 in any financial year must make advance tax payments. Net tax liability is the estimated tax amount after deducting the TDS (tax deducted at source) within the financial year. If your total tax liability after considering TDS is more than Rs 10,000, you are expected to pay advance tax.

Have income above Rs 3 lakh? Pay zero tax if your income is up to this limit, thanks to rebate under section 87A

Income tax rebate: Under section 87A you can get a maximum tax rebate of Rs 12,500 under the old tax regime and up to Rs 25,000 under the new tax regime. However this rebate is only available if your income is upto a specified limit. Read to find out more about income tax rebate.

Economists bat for capex push, fiscal prudence and more jobs at pre-Budget meet

Budget 2024: The focus on the quality of spending, sans mindless freebies, and steps to further curb inflationary pressure should continue, some of the economists told finance minister Nirmala Sitharaman at the customary pre-budget consultation, advising against reckless giveaways. Successful tackling of inflation, they said, would be the biggest pro-poor move.

Should you file ITR if your income is less than Rs 7 lakh with nil income tax?

Income tax return: Taxpayers have to file ITR if their income level exceeds the basic exemption limit or they have conducted certain specified transactions. Experts say that most taxpayers have a misunderstanding that if tax is not payable then filing of ITR is not mandatory. However this is not the case always. Read here to know more about ITR filing.

Documents required for ITR filing: 10 documents you need to file income tax return

Documents required for ITR filing: An individual should collect all the required documents such as Form 16, bank account statements, capital gains statement, depending on the incomes they have to make the ITR filing process easier. Here is the list of 10 documents that a taxpayer might need to file their income tax return this year.

Last date for filing income tax return (ITR) for FY 2023-24 (AY 2024-25)

Due date of income tax return filing: Under the income tax laws, different taxpayers have different due date for filing ITR. It is important to file the tax return on or before the deadline to avoid certain penal consequences. This includes payment of late filing fees, not being able to opt for old tax regime among others.

ITR filing forms for FY 2023-24 (AY 2024-25): Which income tax return form applies to you?

ITR forms: The important part of ITR filing process is to identify the correct the income tax return form applicable to their incomes. Filing income tax return using wrong ITR form will make the filed ITR as defective ITR. Read on to know the correct tax return form applicable to your incomes.

Paying rent in cash without a rent receipt? Know why your HRA claim may be rejected, and you may get an income tax notice

House rent allowance: Tenants will get into trouble with the income tax department if they are paying rent in cash and the landlord does not offer it for income tax. For every claim of HRA there should be a corresponding income offerred for tax. Read here to know how a tenant got into trouble because of this.

Income tax slab rates for FY 2024-25 (AY 2025-26)

Current Income tax slabs: Here are the income tax slabs for current financial year 2024-25 (assessment year 2025-26). An individual has to choose between new and old tax regime to calculate their income tax liability, subject to certain conditions. An individual must choose the tax regime which lowers their income tax outgo.

Income Tax department notifies cost inflation index for current fiscal

The Income Tax Department has notified the Cost Inflation Index (CII) for the fiscal year 2024-25, set at 363, to calculate long-term capital gains from the sale of assets. The CII reflects economic inflation, with an increase of 15 points from the previous year, aiding taxpayers in adjusting gains for inflation and reducing tax liabilities.

No vote-bank threat, less capital-flight risk from wealth tax: Nitin Kumar Bharti

Nitin Kumar Bharti, lead author of a recent World Inequality Lab report, suggests imposing a wealth tax in India to address inequalities, stating it would not affect 99.96% of the population.

No tax exemption on concessional or interest free loan from the employer, not even for bank employees, says SC

Tax on concessional interest rate loan: The Supreme Court of India has stated that bank employees have to have income tax if they have availed loan from their employers at concessional interest rate or interest free rate. However as per our calculations, even if bank employees pay income tax on this loan, they will still have some savings.

Esop non-disclosure triggers black money law

A number of resident individuals working in Indian subsidiaries and arms of offshore parents have recently received notices from the Income Tax (I-T) department which has pointed out amounts that either went undisclosed or untaxed or both.

SC asks Centre to not use "threat and coercion" in GST recovery operations

The Supreme Court directed the Centre to persuade traders to clear GST dues voluntarily without using force during search and seizure operations. The bench emphasized the need for payment to be voluntary and without coercion, allowing individuals time to seek advice and settle liabilities.

Form 15G to save TDS on interest income, dividend: Know eligibility, validity, benefits

Misuse of PAN for fake HRA claims under I-T dept radar: What should landlord do in case of a fake claim?

Fake HRA Claims: If a tenant is using someone else's PAN to make a fake HRA claim, then without doubt the tenant would get into trouble, however the individual whose PAN was used as a landlord for this fake HRA claim would also get into trouble with the income tax department.

Payment for imported software not royalty, rules SC

A bench of Justices BR Gavai, BV Nagarathna and Pankaj Mithal rejected a batch of review petitions filed by the Commissioner of Income Tax both on merits as well as on the grounds of delay. This means tax liability of foreign software seller without a permanent establishment in India would reduce to the 2% equalisation levy introduced via Finance Act 2020 from the 10%-15% royalty tax, which the Indian buyer has hitherto been liable to withhold.

How selling equities before March 31 can help you save income tax

Save long term capital gains tax: Individuals can save income tax by booking profits up to a certain limit on equity shares and equity oriented mutual funds held for more than 12 months. This method is called 'tax harvesting' and it is fully legal in India. Here's how to use this method to reduce your tax outgo and pocket some gains.

Income Tax dept is calculating your advance tax liability by tracking these financial transactions: Here's how to check on compliance portal

The Income Tax Department said, "The Income Tax Department receives information of specified financial transactions of taxpayers from various sources. This information is reflected in the Annual Information Statement (AIS) module and is available to the persons/entities for viewing. The value of ‘Significant Transactions’ in the AIS has been used for carrying out this analysis." Read here to know what are these 'specified financial transactions'.

ITR portal shows inflated income to some taxpayers; Rs 450 showed as Rs 45000. Here's what to do if you face similar issue

The Income-tax department said on X said that they have "identified certain inconsistencies in the data of the securities market (SFT-17) provided by one of the Reporting Entities." It appears that due to this the Income-tax department's 'Compliance Portal' showed highly inflated transaction values for some taxpayers in their annual information statement (AIS). Some taxpayers say that their sale consideration of Rs 4 lakh got inflated to Rs 17 crore. There are many taxpayers who complained on X about the 'Compliance Portal' showing inflated transaction values in their AIS.

​Have you checked your advance tax liability? Pay by this date to avoid penalties

Advance tax: If your estimated tax liability for any given financial year after subtracting tax deducted at source (TDS) exceeds Rs 10,000 then advance tax needs to be paid following a specified schedule. However eligible senior citizens and other prescribed individuals need not pay advance tax. Read here to know more about advance tax.

Taxman sending mails in cases of advance tax, transactions mismatch

The income tax department is reaching out to assesses whose advance tax payments don't match their financial transactions, urging them to correctly calculate and pay their advance tax by March 15. This initiative aims to ensure tax compliance and enhance taxpayer services. The department uses data from the Annual Information Statement to identify discrepancies and inform taxpayers. Taxpayers can log in to their e-filing accounts to view details of significant transactions and comply with tax regulations.