The shares held jointly can be transferred from the joint demat account to a new demat account in the individual name, appointing both the children as nominees (there is no restriction on an NRI being a nominee).
Taxspanner estimates that Sonawane can reduce his tax to zero if he gets a few tax-free perks, he opts for the NPS benefit offered by his company and also invests in the scheme on his own.
Income tax refund will be payable to you only after the tax department processes your ITR and confirms the same through intimation notice. Here is how you can check the status of tax refund.
The income tax department had previously announced that from March 1, 2019, it will issue only e-refunds. These tax refunds will be credited only to those bank accounts which are linked with PAN and are also pre-validated on the income tax e-filing website.
While currently, there are no specific guidance/specific tax provisions on taxation of cryptos in the Income-tax Act, 1961 (the Act), one could draw inference from the general principles of taxation. One should keep in mind that not reporting transactions in cryptocurrencies in one's ITR can lead to penal consequences, and in some cases, there could be a risk of prosecution.
With effect from the financial year 2020-21, the excess contributions made by the employer to EPF, NPS and retirement funds will be taxed as perquisites in the hands of an employee. The new provisions have come up with new responsibilities for the employers as they are required to calculate the income appropriately and withhold taxes on the same.
What happens if the bills were not submitted to the employer before the March 31 deadline under the LTC Cash Voucher Scheme? As per chartered accountants, the Income-tax Act, 1961 is silent on whether the tax-exemption on LTC Cash Voucher Scheme can be claimed at the time of filing ITR.
There are certain individuals who can file their ITR without paying a penalty even after the expiry of the deadline. Let us take a look who will not have to face penal consequences for missing the ITR filing deadline.
Penal interest is levied at 1 per cent per month or part thereof starting from August 1, 2021. If the self-assessment tax is deposited on or before September 30, 2021, then it will attract penal of two months only.
“The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act,” the Central Board of Direct Taxes (CBDT) said on Friday.
Here is a look at the details you will have to provide and a step-by-step guide on how to do register and open an account on the new income tax filing website.
While receiving Form-16, one must check that the PAN mentioned on it is yours. If there is any discrepancy, then you must bring this to your employer's notice. Your employer will rectify the mistakes in Form-16 and issue you a revised form.
While high inflation is burning a hole in your pocket, there is a silver lining. High inflation also brings down your tax on long-term capital gains which are eligible for indexation benefit.
An individual taxpayer can bring down his/her tax liability by setting off capital gains from one asset with capital losses in another asset. Here's how it can be done.
Taxpayers should be aware of how incomes from other sources have to be reported in the tax return and know about the various deductions available to them. This week’s cover story looks at some of the incomes that might get missed by DIY taxpayers when they sit down to file their returns.
As per the government, individuals having LTC/LTA in their salary package would have been unable to travel and claim income tax exemption on the travel tickets due to the pandemic induced lockdown. Thus, this scheme was introduced last year.
This is the second time this fiscal the government has extended the deadline of filing ITR for individuals whose accounts are not required to be audited. Earlier, due to the second wave of Covid-19, the ITR filing deadline was extended by two months from the usual deadline of July 31 to September 30.
Many salaried individuals have to use the ITR-1 form to file their tax returns. A resident individual having total income up to Rs 50 lakh from salary, one house property and income from other sources can file his tax return using Form ITR-1.
Irrespective of the scheme option (Growth or income distribution or IDCW), the taxation of the receipt of principal amount and interest upon winding up of the fund or scheme remains the same.
As per the income tax law, in the case of a deceased person who has expired during the year, the responsibility for filing the return till the date of death shall be that of the legal heir.
As per the memorandum to the Budget 2021, "In order to provide relief to senior citizens who are of the age of 75 years or above and to reduce compliance for them, it is proposed to insert a new section to provide a relaxation from filing the return of income."
Even a taxpayer or salaried professional paying low taxes can further reduce tax outgo. In Ashish Rastogi's case, if his company puts Rs 3,781 (10% of his basic pay) in the NPS every month, his annual tax will reduce by more than Rs 9,000.
Even if your total income does not exceed Rs 2.5 lakh but the payer of income has deducted taxes and you need to claim a refund from the tax authorities, you will need to file an ITR.
Chartered accountant society representatives are also saying that the deadline should be extended in view of the state of the newly launched income tax filing portal. Therefore, it appears likely that ITR filing deadline would be extended.
In order to discourage the practice of not filing an income tax return by a person in whose case a substantial amount of tax has been deducted/collected, it has been provided that the rate of TDS/TCS shall be double that of the specified rate or 5%, whichever is higher.
The amount received as gift from spouse is not taxable and there shall not be any need to file the tax return for your wife if her total income doesn't exceed this amount.
As the September 30 deadline for tax filing approaches, many are in a dilemma over whether to call themselves ‘resident’ or ‘NRI’.Once a resident, their earnings abroad would come under the tax net in India, something members of the Indian diaspora — particularly those based in countries such as the UAE and Bahrain, which have no income tax — are desperate to avoid.
When a company is delisted, large investors and institutions avoid huge losses by taking recourse to tax write-offs. But small investors are left high and dry.
"Taxpayers have been advised to use the latest version of the ITR preparation software or file online. If, by any chance, someone has already submitted the ITR with such incorrect interest or late fee, the same will be correctly calculated while processing at CPC-ITR and the excess amount paid, if any, will be refunded in the normal course," the I-T department tweeted.
From a direct tax perspective, it should be ensured that the CPA firm in the US does not equip itself with knowledge or expertise while you provide the consultancy services, which would enable them to apply that in the future independently without your assistance.
An individual can invest in India through the NRE or NRO account. While the NRE account is an external account and hence repatriable, the NRO account is a resident account and funds are non-repatriable beyond $1 million per year.
Sharma lives on rent but doesn’t claim exemption because his salary does not have an HRA component. Taxspanner says that he can claim exemption for Rs 5,000 rent per month (Rs 60,000 in a year) under Section 80GG. This will reduce his annual tax by about Rs 12,500.
One can claim this tax deduction benefit of Rs 1.5 lakh annually if he/she does not own a property and is planning on buying a house in the affordable housing segment provided the total stamp duty value of the residential house property is up to Rs 45 lakh.
There is an option available to offer interest income for tax on accrual basis or receipt basis, at the discretion of the assessee. In case you are following the accrual basis of accounting, the interest income is to be reported at the end of every financial year.
Kohli should start by asking for the NPS benefit. Under Sec 80CCD (2), up to 10% of the basic put in NPS is tax free. If her company puts Rs 5,477 (10% of her basic) in the NPS every month, her annual tax will reduce by almost Rs 13,700.
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.
