The income tax return forms notified by the CBDT for FY 2021-22 have been kept unchanged. The individuals are required to provide information related to income received form various sources such as salary, rent etc. in the ITR forms, as applicable, for the FY ended on March 31, 2022.
The income tax department has provided relief to taxpayers who are yet to link their PAN with Aadhaar albeit with some conditions. The CBDT has notified the fee structure via a notification dated March 29, 2022. The notified fee which will be payable for linking PAN with Aadhaar for linking it on or after April 1, 2022 will have two-tier structure. Read on to know about it.
The Central Board of Direct Taxes (CBDT) has notified the penalty amount under section 234H of the Income-tax Act, 1961 which will be applicable for linking PAN with Aadhaar after the expiry of the due date.
Tax experts feel the new rules have been framed to discourage investments in cryptos. “It’s a continued effort to isolate and disincentivize crypto currency related activities in India. The prevention of offset between different cryptos will negatively impact traders,” says Rohinton Sidhwa, Partner, Deloitte India.
Employer contributions to retirement funds such as Employees Provident Fund (EPF), National Pension System (NPS), or any other superannuation fund that exceed Rs 7.5 lakh in a financial year will be taxed in the hands of the employee beginning in FY 2020-21.
As individuals are required to choose between the old and new tax regimes, it is important to know how to calculate the income tax liability for the financial year 2021-22 under the new tax regime. Read on to know how you can calculate the income tax liability under the new tax regime for the ongoing financial year.
MoS Finance Chaudhary also said no deduction of any expenditure or allowance, apart from cost of acquisition, will be allowed while computing the income from the transfer of virtual digital assets.
Sudhir Jaiswal should start by opting for the National Pension System or NPS benefit offered by his company. Under Section 80CCD(2), up to 10% of the basic salary put in the NPS is tax free.
Find out how to maximise your gains and optimise tax before the financial year ends on March 31, 2022. Our cover story looks at smart tax moves that investors and taxpayers should make in the dying days of the financial year.
Tax planning is an integral part of financial planning and this is why you should invest in options that are aligned with your goals and objectives that can save taxes too.
The last date to link PAN with Aadhaar is March 31, 2022. If both the documents are not linked by this date, then there will be numerous consequences faced by an individual which includes payment of penalty. Read on to know what will happen if PAN is not linked with Aadhaar.
There are two ways under the Income-tax Act, 1961 to reflect the transaction of transferring shares from your wife's demat account to your demat account.
There are various ways to save tax under the old tax regime. However, the question arises of what should be the best tax saving plan for you and to meet financial goals such as retirement, buying a house etc. Here is how you should choose the best ways to save tax for the current financial year.
Under Section 80C of the Income Tax Act, tax-saving FDs are eligible for a deduction of up to Rs.1.5 lakh. If you're looking to invest for the medium term while still saving money on taxes, these tax-saving FDs with a 5-year lock-in period could be ideal.
If Vijaykumar gets items (computers, furniture, AC, etc) worth Rs 60,000 in a year, her tax will reduce by around Rs 11,200. Vijaykumar has group medical cover, but her parents are not included. If she buys a medical plan for them for Rs 40,000, she can save Rs 8,300 in tax.
Do keep in mind that TDS on specified transactions is deducted only when the value of payment is above a specified threshold level. TDS will not be cut if the value does not cross this level.
If an EPF balance is withdrawn before 5 years of service, TDS is deducted at a rate of 10%. TDS will be deducted at the highest slab rate of 30% if PAN is not provided during withdrawal.
Financial planners, investment advisers and distributors of financial products said that the best strategy for any taxpayer to save on tax is to invest regularly, through the year, and not just during the last few months of the fiscal.
Understanding of capital gains tax and incorporating it into investment planning is hindered because few investors even know that there is something called capital gains tax. And why is that? That is because of the confusing mess that has been created by governments over the decades.
The government has added a new section to the Income Tax Act, namely Section 194R, which aims to bring such sops under the ambit of tax deduction at source (TDS).
A proviso to Section 68 of the I-T Act stands amended. It provides that if a taxpayer takes a loan or borrows money, the amount credited in her books is treated as ‘unexplained’, unless the lender explains her source of funds that were extended by way of a loan.
As per the Budget 2022 announcement, the gift of virtual digital assets is proposed to be taxed in the hands of a recipient. However, as per taxation rules under Income-tax Act, 1961, gifts made to specified relatives or on specific occasions is exempted from tax.
An additional 25 per cent on the due tax and interest would have to be paid if the updated ITR is filed within 12 months, while the rate will go up to 50 per cent if it is filed after 12 months, but before 24 months from end of relevant Assessment Year.
You can invest in the PPF, Ulips, mutual funds and some traditional plans, but remember that the income from these will be added to your income and taxed at the applicable rate.
The surcharge on long-term capital gains tax from equity funds and listed stocks is already capped at 15%. But for gains from other assets, the surcharge is based on the income slab of the taxpayer.
When experts looked into the fine print and investors understood the full implications of the rules, it became clear that the tax rules for cryptos were not very favourable to investors.
What will happen if you incur a loss trading in one crypto asset, say, in bitcoin, and make a profit in selling another one, say dogecoin? In such a scenario, can you set off the losses from bitcoins against capital gains made on dogecoins thereby reducing the taxable capital gains on the crypto assets?
After years of dilly-dallying on how to treat cryptocurrencies, the budget on Tuesday proposed taxing income from the transfer of virtual assets at 30% -- effectively removing any uncertainty about the legal status of such transactions.
No notional rent will be added to the taxable income for your second self-occupied house property. Thus, if you don’t find a ready tenant you can keep it self-occupied. Do note, that this leeway is available only for up to two houses.
Switching to the concessional regime is completely ‘optional’. So you could opt for the old regime which allows you to avail exemptions, deductions and losses so that your net taxable income is reduced, and such reduced income is subject to tax at applicable slab rates.
Based on a trust-based governance mechanism, the Finance Bill has now allowed taxpayers to file an updated return within two years from the end of the relevant assessment year from three months at present.
This implies that if you are holding cryptocurrencies, then income derived from such an investment will be taxed at 30 percent. Any profits generated via the trade of cryptocurrencies would be taxed at 30%, including gifts and transfer of virtual assets from one wallet to another owned by different individuals.
Based on a trust-based governance mechanism, the Finance Bill has now allowed taxpayers to file an 'Updated Return' within two years from the end of the relevant assessment year.
In the field of taxes, less is always more. No new taxes were proposed nor were taxes raised. Instead, by limiting the surcharge on capital gains, long-term capital gains tax on unlisted shares has been reduced by about 4.5%. All of which is very welcome.
A buyer of immovable property is required to deduct tax at the rate of 1% of the sale value and furnish the challan-cum-statement in Form No. 26QB to deposit the TDS amount with the government. From the due date of depositing the TDS amount, he/she is required to issue TDS certificate i.e., Form 16B within 15 days. If the TDS certificate is not issued within 15 days, then he/she will be liable to pay a penalty of Rs 500 per day from FY 2022-23 onwards, as per the proposals.
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.
