The new rules are notified by the Central Board of Direct Taxes (CBDT) on August 18, 2023 and became effective from September 1, 2023 i.e., today. The new rules provide for inflation adjusted rental value of house certain conditions. Read on to know about the new tax rules and how they will impact your TDS and salary.
Social media has made it possible for just about anybody to earn money by posting content. However an individual needs to know what the income tax law and other laws say about such an income, so that one does not get into trouble. Read here to know about the details.
An income tax audit report has to be mandatorily uploaded on the income tax return (ITR) portal by September 30 for those who are required to conduct an income tax audit. However even if the deadline is missed, one still has to upload the audit report by paying a penalty.
There are various documents which an individual has to maintain following specific accounting principles and format in order to successfully complete an income tax audit. Further in cases of certain specified professionals like medical, legal, engineering, etc some additional documents are also required to be maintained in addition to the list of documents required for income tax audit.
Last year, the Central Board of Direct Taxes (CBDT) decreased the ITR verification time restriction from 120 days to 30 days from the date of return submission in order to speed up this procedure. The change came into effect from August 1, 2022.
Form 60 is required to be submitted in lieu of PAN if an individual does not have one but is conducting certain specific transactions like purchasing a car, etc. However income tax department will send an individual an SMS and email about updating one's PAN number to the reporting entity where Form 60 was given or apply for a PAN.
Under Section 80CCD(2), up to 10% of basic salary put in the NPS is tax deductible. There are some tax-free perks, such as a gadget allowance, meal coupons and reimbursement of expenses on books and periodicals that a salaried employee gets. Under Section 17(2), gadgets bought in the name of the company, and given to the employee for personal use, are taxed at only 10% of the value. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their income and investments.
Nitin Gupta, Chairman, Central Board of Direct Taxes (CBDT), has launched a revamped national Income Tax Department website at the ‘Chintan Shivir’, an event organised by the Directorate of Income Tax (Systems) at Udaipur, Rajasthan on August 26, 2023. This new Income tax department website is mobile friendly and live right now.
The Income Tax Act, 1961 has mandated certain taxpayers to get their books of accounts audited and submit a tax audit report by September 30. This audit is different from audit done under any other Act like Companies Act, 2013, etc. Read here to know who is required to get their accounts audited for income tax purposes.
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The Central Board of Direct Taxes (CBDT) has issued guidelines in August 2023 on how tax-exemption on maturity amount received from life insurance policies (except Ulips) would be calculated. The new guidelines have been issued after Budget 2023 put a cap on annual premium till which tax-exemption on life insurance policies will be available from April 1, 2023.
Certain category of businessmen and professionals are mandated by the Income tax law to get an income tax audit conducted by a chartered accountant. The last date for income tax audit is September 30, 2023 for FY 2022-23 (AY 2023-24). And the last date for ITR filing along with audit report is October 31, 2023.
In case an individual has not linked his/her PAN with Aadhaar by June 30, 2023 then in all probability it has got classified as 'inoperative' by now. An inoperative PAN will have the same effect as if no PAN exists and it cannot be quoted anywhere where PAN is required to be quoted.
Once the income tax return is processed by the tax department, then they can send you a tax notice. The notice can be in the form of acknowledgement (if your calculation matches with that of income tax department) or there may be additional tax demand notice. Here is how an individual should deal with the income tax notices in five steps.
he employer only takes care of the tax liability via TDS at the time of vesting. Any tax liability for dividend received and capital gains at the time of sale should be dispensed by the employee via advance tax payment.
Annual Information Statement (AIS) is an important document because many tax filers reconcile their own data with AIS. However do note that if one has paid any self-assessment tax while filing ITR for FY 2022-23 then the AIS for FY 2023-24 will show this and not AIS for FY 2022-23.
The Central Board of Direct Taxes (CBDT) has issued guidelines on how tax exempt portion from life insurance policies will be calculated (bought on or after April 1, 2023). This would mean that now maturity proceeds from life insurance companies will not be fully tax-exempt except in certain cases. Read on to know more about it.
The Budget 2022 amended the income tax laws to allow a taxpayer to file updated return using ITR-U form. However, the income tax laws has clearly defined the instances where a taxpayer can and cannot file updated return. The aim of allowing taxpayers to file updated return is to increase the voluntary compliances and avoid litigation.
An income tax notice is an official communication from the income tax department. It is not a cause of worry if an individual reads the notice carefully and corrects the defects mentioned in the notice. Read here to know in detail what do different types of notices actually mean and by when they could be served.
The income tax laws allow an individual to file updated return. The concept of updated return was introduced in the Union Budget 2022 to allow individuals rectify their mistake made while filing ITR or to allow one more chance to individuals to file ITR if they have not filed ITR previously.
Missed the ITR deadline of July 31, 2023 and have a net taxable income above Rs 5 lakh for FY 2022-23 (AY 2023-24)? Pay Rs 5,000 as penalty and file a belated ITR under section 139 (4) of the Income Tax Act, 1961. Read below how to pay up the penalty while filing a belated ITR.
Chennai-based IT professional Jeyanth Kumar paid a high tax last year due to capital gains. Sudhir Kaushik of TaxSpanner.com suggests him how he can optimise his tax by rejigging his income and investments.
If an individual is having income from business or profession for FY 2022-23 (AY 2023-24) and want to opt for or opt out of the new tax regime/ old tax regime, they need to file Form 10-IE before the deadline for ITR filing i.e. July 31, 2023 or October 31, 2023 (for audit cases).
It is important for individuals to ensure that they have proofs and required documents for all the deductions and tax exemptions claimed while filing income tax return. This is to ensure that if in the future years the income tax department asks the individual to provide proofs to substantiate the deductions claimed. If the proofs are unsatisfactory then it can lead to heavy penalties.
Both the central and state governments impose a road tax. The state government collects toll taxes, state VAT, passenger and goods taxes, and motor vehicle taxes on an annual or lifetime basis.
ITRs must be filed before the due date. Timely filing helps the I-T department manage the workload efficiently and ensures that the return is processed promptly.
Once you file your tax returns, you can find out its status as to whether the Income Tax Department has accepted and processed your ITR.
Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away.
Now that the deadline for income tax return (ITR) filing is over, you can only file a belated ITR by paying a penalty and interest on the income tax due amount. Nonetheless it is better to file a belated ITR than not filing any ITR, despite having a net taxable income.