Do keep in mind that the ITR must be verified within 120 days of filing it. Thus, if you are using the physical method to verify your ITR, then it is important to make sure that it reaches the income tax department on time.
The new rule was announced before the pandemic-induced travel restrictions. It can unintentionally impact all those NRIs/PIOs who had come to India and had to spend longer time in the country in FY 2020-21 due to travel restrictions or health concerns.
Pre-immigration tax planning and estate planning could ameliorate tax liabilities and help optimize your options before you trigger tax obligations. However, it is critical to remember that some tax-saving measures can be availed of, only before you become a lawful permanent resident or Green Card holder.
Form ITR-2 can be used by the individuals having capital gains, more than one house property, foreign assets etc. in FY 2020-21. Here's how one can file ITR-2 on the new income tax portal.
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.
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.
The exemption for House Rent Allowance is denied to employees if he or she occupies a house which is owned by them or there is no actual payment of rent.
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.
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.
As per current laws, there is no clarity on whether crypto holdings are classified as Indian or foreign assets. In case it is the latter, then reporting these holdings in one's ITR would be needed irrespective of the income level of the investor.
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.
“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.
Self-assessment tax dues are calculated after subtracting TDS, TCS and advance tax dues. Here is a look at how self-assessment tax is calculated and how the penal interest will be calculated for those who delay filing their ITR.
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.
Kant should start by asking his company for the NPS benefit. Under Sec 80CCD(2), up to 10% of the basic put in NPS is tax free. If his company puts Rs 6,123 (10% of his basic pay) in the NPS every month, his annual tax will reduce by more than Rs 15,000.
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.
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.
Earlier, an individual was allowed time till the end of the financial year, i.e., March 31 to file belated ITR by paying maximum penalty of up to Rs 10,000. Here's why the penalty this year is half that of last year.
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.
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.
The income tax department has created a list of persons (called specified persons) for whom this higher rate of TDS, TCS will be applicable. However, there is a way of stopping higher TDS, TCS on incomes.
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.
Amendments made to the way contributions to the EPF, NPS and Superannuation fund have increased the tax burden on certain sections of the salaried class.
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.
Whether you are an experienced investor or have just started out, you have to comply with certain tax rules when you invest outside India. For one, when you sell your foreign investments, the gains are taxed at different rates than the gains from domestic investments. Here are some things to keep in mind.
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.
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.
