Good news: Soon income tax dept to correct ITR-2, 3 forms to allow eligible taxpayers to claim 87A tax rebate for FY 2023-24

Income Tax Rebate: "The updated utilities for ITR forms 2 and 3 giving effect to the Circular No. 21 dated 31st December 2024 and including the option to update 87A rebate will be made available shortly," said the Income Tax Department. This means you can soon expect to file a revised ITR or belated ITR to claim 87A tax rebate if eligible. By claiming 87A tax rebate, your total tax liability gets reduced and in some cases it gets nil.

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Income Tax Department extends belated, revised returns deadline to January 15, 2025 for these taxpayers

Income tax return: The ITR filing deadline has been extended by the Income Tax Department to January 15, 2025 for individuals. "Many tax payers received intimation for mismatch of transactions appearing in AIS and income/transactions reported in ITR. Extension will help taxpayer to check if any Income/Transactions is not reported/mis reported in ITR and file revised return."

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New feature added in ITR portal: Now you can file rectification request online for incorrect ITR processing even if it’s with the AO

Income tax return: Taxpayers can now file an online application for rectification of their ITR if it was incorrectly processed. However the error must be apparrent from the records. For example: Taxpayer has claimed deductions in original/revised return and same has not been allowed while processing the ITR. Read below to find out about online rectification application to income tax assessing officer (AO).

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Income tax relief: Deadline of Vivad Se Vishwas Scheme extended, taxpayers get more time to pay a lower amount of tax to settle dispute

Vivad Se Vishwas Scheme: The Income Tax Department has extended the deadline to January 31, 2025 to pay a lower amount of income tax to avail Vivad Se Vishwas Scheme 2024. The direct Tax Vivad Se Vishwas Scheme 2024 announced in Budget 2024 provides an opportunity to taxpayers for settling their pending tax disputes with the Income Tax Department.

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GST annual return deadline is December 31: Why should you file it even if not liable to file one

GST annual return: The deadline to file GST annual return is December 31, 2024. There is a good argument as to why you should file GST annual return despite the turnover being below Rs 2 crore. Experts say filing an annual return helps with the reconciliation process and will help you if you ever receive any GST notice.

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Stockbrokers can ask you to submit income tax returns (ITR) to check PMLA violation; may lead to jail up to 7 years if guilty

Income tax return: Stockbrokers can also ask for your ITR even if you gave one during the time of account opening. ​Tejas Khoday from FYERS say: "Generally, brokers don't ask for ITRs once an account is active. However, exceptions exist. For instance, if there's any unusual activity in the client's account or a potential mismatch between declared income and trading volumes, brokers may request an update to the client's declared income range."

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Bengaluru-based software professional can save Rs 70K tax via Section 80C, 80CCD investments, tax free perks

Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.

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TDS relief for salaried: From January 1, 2025 this tax statement will reflect the net TDS/TCS benefit on eligible income

TDS on salary: Now salaried taxpayers will be able to see how much benefit of lower TDS they got in the TDS certificate statement from Q4 2024-25 onwards. Experts say due to this new TDS change now salaried employees may get more salary in hand due to lower TDS deduction.

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New GSTN guidelines for transport via Indian Railways: Buyers won’t receive goods if E-Way Bill doesn’t have this detail, here’s how to do it

Goods and Services Tax (GST): GSTN in an a new advisory said now freight operation information system (FOIS) of the Indian Railways has now been integrated with the E-Way Bill (EWB) system of the Goods and Services Tax (GST). Experts say now buyers must be careful about the validity of the E-Way Bill generated by the seller. If there is any discrepancy goods can be seized by the GST officer.

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15 income tax rule changes in 2024 that will impact your ITR filing in 2025

ITR filing: Most of the income tax changes announced in July 2024 will affect tax deductions and exemptions that can be claimed while filing an income tax return (ITR) in July 2025. ET Wealth Online has listed 15 income tax changes in 2024 and how they will affect you when you file your income tax return next year.

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Confused as how GST hike on used car will work? Here's how a higher GST of 18% will impact individuals and businesses

GST on used car sale: Consumers buying a used car now need to pay more GST. Moreover, if a business is claiming input tax credit then GST needs to be paid on the sale value and not margin. However smaller cars like Renault Kwid may benefit from lower GST of 12% if buying used.

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Know four different types of Employees Stock Option Plans (ESOPs) and how they are taxed

Different types of ESOPs: Many companies give ESOPs or Employee Stock Option Plans as part of their compensation benefit. However, not many are aware of the different types of ESOPs that a company give to the employee. Read on to learn the four different types of ESOPs and how they are taxed as per income tax laws.

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ITR filing deadline extension: Bombay HC orders tax dept to allow these taxpayers claiming 87A rebate to file ITR till January 15, 2024

87A tax rebate: The Honourable Bombay High Court said recently, "​By way of interim relief, the... Central Board of Direct Taxes is hereby directed to forthwith issue requisite notification under Section 119 of the Act extending the due date for e-filing of the income-tax returns...." This order came against the backdrop of a PIL filed by The Chamber of Tax Consultants regarding denial of 87A tax rebate when filing ITR through the utility despite being eligible.

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Income tax dispute: Avail Vivad Se Vishwas scheme before December 31, 2024 to pay lower tax amount

Vivad se Vishwas: If you want to settle your pending tax disputes then apply for Vivad Se Vishwas Scheme, 2024 on or before December 31, 2024 to pay a lower amount of income tax. You can apply for this scheme after Decemeber 31, 2024 as well but you need to pay 10% extra tax.

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Agarwal can save Rs 1.41 lakh income tax on his salary of Rs 44 lakh by rejigging his salary structure and taking these steps

Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.

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New advisory by GSTN: GST E-Way Bill rules changed; Buyers’ input tax credit is at risk if seller does not follow these new rules

GST: A new advisory by GSTN alerted taxpayers about changes being made with E-Way Bill generation time limits which is now reduced to 180 days from the date of the base document. “For instance, documents dated earlier than July 5, 2024, will not be eligible for e-waybill generation starting January 1, 2025.”

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Switzerland MFN withdrawal: Pay 10% tax instead of 5% on dividend income from January 1, 2025; know how it will impact

Higher tax on dividend: From January 1, 2025 Indians need to pay witholding tax at 10% rate instead of 5% rate in Switzerland. Experts say this may result in burden for a company's cash flow and may also result in dead loss for certain trusts and individuals investing in Switzerland. Read below to know the impact of this decision by Switzerland.

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Bitcoin taxation: Only Rs 33 lakh income tax liability on Rs 6.64 crore gain by selling Bitcoin for an Infosys employee, rules Jodhpur ITAT

Bitcoin is capital asset: Jodhpur ITAT recently ruled that an Infosys employee who purchased Bitcoin using his salary should pay capital gains tax at 20% rate and also claim section 54F tax exemption after he sold the Bitcoin for Rs 6.69 crore. The Income Tax Department wanted this person to pay 30% tax on that more than Rs 6 crore gains but lost the case. Curious to know why and which legal aspect this person used? Read below.

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Bitcoin taxation: Only Rs 33 lakh income tax liability on Rs 6.69 crore gain by selling Bitcoin for an Infosys employee, rules Jodhpur ITAT

Bitcoin is capital asset: Jodhpur ITAT recently ruled that an Infosys employee who purchased Bitcoin using his salary should pay capital gains tax at 20% rate and also claim section 54F tax exemption after he sold the Bitcoin for Rs 6.69 crore. The Income Tax Department wanted this person to pay 30% tax on that more than Rs 6 crore gains but lost the case. Curious to know why and which legal aspect this person used? Read below.

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ITR filing: December 31, 2024, is last date to file belated, revised return for FY 2023-24, what happens if you miss this deadline

December 31, 2024 ITR filing deadline: Income tax laws allow individual to file belated and revised return. A belated return is filed if an individual has missed the last date to file original ITR. On the other hand, revised return is filed if an individual has made a mistake in the original and belated returns. Know what happens if belated or revised return is not filed by December 31, 2024 for FY 2023-24.

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Disclose foreign asset or income details in ITR by December 31, 2024 or else Rs 10 lakh penalty can apply, says Income Tax Department

Black Money Act: ​"Failure to disclose foreign income or asset in ITR can mean assessment proceedings being initiated under Black Money (undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Penalty of Rs 10 lakh can be levied, if the aggregate value of an asset or assets (other than immovable property) exceed twenty lakh rupees," said the Income Tax Department.

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ITR filing: CBDT sending emails for mismatches in ITR, AIS, high-value transactions, not filing ITR for these years

The Central Board of Direct Taxes (CBDT) has launched an electronic campaign to help taxpayers reconcile discrepancies between their Annual Information Statements (AIS) and Income Tax Returns (ITRs) for two financial years. The CBDT is sending email and SMS notifications to taxpayers and non-filers, highlighting discrepancies and encouraging them to file updated or late ITRs for FY 2023-24 by December 31, 2024.

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Vivad Se Vishawas Scheme 2024: Income Tax Department releases new FAQs on eligibility, tax amount payable; Check details here

Vivad Se Vishwas Scheme 2024: You can settle your pending income tax litigation cases by appling for Vivad Se Vishwas Scheme 2024. The Ministry of Finance has released new frequently asked questions (FAQ) on this scheme. "The objective of the Scheme is to, inter alia, reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers."

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Income Tax Department regrets issuing erroneous notices to taxpayers: Know the details

Income Tax Dept sent wrong tax notice to many: The tax department has erred in sending notices to many taxpayers for defective income tax return (ITR). A defective return notice was wrongly issued on 29th Nov 2024 stating that income is offered u/s 44AD.... We regret the above erroneous communication, which was issued, for the return filed for the AY 2024-25," said the Income Tax Department.

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Gala is saving for retirement but his mutual fund portfolio is risky: Here's what he should do to meet goals

Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.

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Income taxpayers can set off short term capital loss from share sale against long term capital gains: ITAT

The Income Tax Appellate Tribunal recently upheld a taxpayer's right to engage in legitimate tax planning, allowing the set-off of short-term capital loss incurred from the sale of shares against long-term capital gains (LTCGs), according a TOI report. The decision is a huge relief for stock market investors who often face scrutiny during income tax assessments.

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PAN 2.0: A master-key to access digital system and govt services, know how it will help you

PAN2.0: The common identifier number which is going to be PAN 2.0 has many benefits. ​Gaurav Makhijani from Roedl & Partner India, says: This project is expected to provide taxpayers a more seamless experience. By integrating data from various sources onto a single platform, the common identifier number will simplify the tracking of transactions/ investments that will provide better experience. This also means a reduction in overall cost of compliance handling, reduction in errors, etc."

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Advance tax payment deadline December 15 is Sunday: Can you pay this third installment of advance tax on December 16?

Advance tax: The third installment of advance tax of FY 2024-25 needs to be paid on or before December 15, 2024. However, since December 15, 2024 is a public holiday i.e. Sunday you can pay it by December 16, 2024. This is based on the fact that a 1994 circular permits this.

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ITR filing last date FY2023-24: Missed ITR deadline or made mistake in ITR? File a revised, belated return by December 31, 2024

ITR filing due date: December 31, 2024, is the last date to file belated and revised ITR for FY 2023-24 (AY 2024-25). A taxpayer can file a belated ITR if they have missed the original due date of ITR filing which is applicable to them. A taxpayer can also file revised ITR if they have made a mistake in the originally filed ITR.

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PAN 2.0: How to apply for PAN card reprint with QR code

PAN card reprint application: If you are one of those taxpayers having a PAN card with old designs and want to update it to the new design having a QR code, then you can submit an application for the PAN card reprint. There are charges applicable to applying for a PAN card reprint. Know the steps you should follow to apply for a PAN card reprint with a QR code.

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No late fees for filing GSTR-7 after deadline; Here’s why these taxpayers still need to file it to avoid serious consequences

GSTR-7 due date: New advisory by GSTN says even if the due date for filing GSTR-7 is missed, taxpayers filing a 'Nil' GSTR-7 return won't have to pay any late fees. The deadline to file GSTR-7 is December 10, 2024 for November 2024 tax period. Read below to know why you must file GSTR-7, which has been made sequential from October 2024 onwards.

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GST registration: Register for GST via biometric-based Aadhaar authentication and document verification in these states

GST registration in Haryana, Manipur, Meghalaya, and Tripura will now involve biometric Aadhaar authentication and document verification. Under this, some applicants might be required to visit a GST Suvidha Kendra to complete biometric verification. Read on to find out who will be required to visit the GST Suvidha Kendra for biometric verification, and in which states is this facility already active.

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Deadline for filing GSTR-7 is December 10, 2024 for these GST registered taxpayers even if TDS was not deducted

GST return: Now you need to file GSTR-7 even if no TDS (tax deducted at source) was deducted. "GSTR-7 return is to be filed in chronological order, beginning with the return period of October 2024. It is pertinent to mention that for a month in which no deduction has been made, deductors need to file Nil return for the same month," said GSTN.

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Income tax grievance redressal overhaul: Faster response, demarcated list of officers for tax refund, TDS, PAN, waiver, other issues

Income tax:The income tax department has overhauled the grievance redressal system to make it faster. Experts say now taxpayers can expect faster resolution of various grienvances relating to PAN, TDS, tax refund and others. ​"The Income Tax Department of India has introduced several enhancements to its grievance redress mechanism in 2024. With the launch of the e-Nivaran and CPGRAMS system, taxpayers now have a more efficient way to address their concerns, track progress, and escalate unresolved issues as needed."

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PAN 2.0 is going digital: Will you still need a physical PAN card as ID proof and KYC document?

Permanent Account Number: As PAN 2.0 is going to be digital with the option to take physical PAN, will you still need to spend money for getting PAN 2.0 physical card? ​CA Ankit Jain says: "Based on current experience, digital PAN is accepted at entry points of airports, hotels, trains etc. Digital PANs are also accepted while applying for GST registration, Director Identification Number, Company Registration, etc."

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KSCAA writes letter to tax dept about taxpayers being wrongly charged late penalty for ITR filing

Income tax department: KSCAA has reported that the tax department has been erroneously processing many income tax returns (ITRs) and even imposing late filing fees of Rs 5,000 in cases where the ITR was filed before the deadline expired. "Our representation to the Central Board of Direct Taxes highlights critical systemic issues in income tax return processing that are causing undue hardship to taxpayers and professionals," says CA Vijaykumar M Patel.

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PAN 2.0: How to get PAN card with QR code for free by updating your address online

PAN with QR code: The FAQs released by the income tax department allow PAN card holders to update their addresses online for free if they have old addresses updated in the income tax records. Here is a step-by-step guide on how PAN cardholders can update addresses using Aadhaar based e-KYC.

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Have high hopes from GST cut on health, life insurance? Here's why a drastic fall is unlikely to benefit policyholders

GST on insurance: The public demands lowering of GST rate on insurance products as it is too high. However industry experts warn that if the GST rate is cut from 18% to 5% without input tax credit is not given then instead of making the premium affordable, the premiums will rise.

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