FM to introduce to new Income Tax Bill next week: What is it likely to contain?

Finance Minister Nirmala Sitharaman will introduce a new Income Tax Bill next week, modelled on the Direct Tax Code. The aim is to simplify tax compliance for taxpayers and make the Income Tax Act easier to understand, enhancing readability and removing duplication of laws.

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Will 'Lakshmi' bless taxpayers? High expectations of income tax relief for poor, middle class in Budget 2025 today

Income tax expectations: The Union Budget 2025 will be presented today by finance minsiter in Parliament at 11 AM. There is an expecation among salaried taxpayers and middle class for income tax relief in the form of income tax rate cuts, income tax slabs. Will Maa Lakshmi bless taxpayers today as PM Modi hinted yesterday.

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NRIs selling property in India face a maze of income tax, TDS rules: Simplification urged in Budget 2025

Non-resident property transactions in India face compliance challenges, including obtaining TAN, depositing TDS, and filing e-TDS returns. It is hoped that Budget 2025 simplifies these processes and enables overseas bank payments to ease the compliance burden for buyers and sellers, fostering smoother cross-border property deals.

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5 income tax reliefs that professionals, small businesses expect in Budget 2025

As of January 2025, the number of MSMEs registered on the Udyam portal has reached 5,84,06,752. MSMEs play a pivotal role in economic growth and employment. Therefore, to further boost small and medium businesses in India, the government should consider rationalising certain income-tax provisions for MSMEs and professionals in Budget 2025.

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No GST on penal charges levied by banks, NBFCs and other regulated entities on loans, clarifies CBIC

No GST on penal charges: The government has clarified that no bank, NBFC, regulated entities (REs) can charge Goods and Services Tax (GST) on penal charges on loans. Penal charges are payments in the nature of liquidated damages for breach of contract and hence are not a consideration for tolerating an act or situation.

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Income tax deductions are not inflation linked hitting taxpayers harder: Budget 2025 needs to hike these

Since its introduction, the government has actively promoted the new tax regime, citing its reduced compliance burden for both taxpayers and authorities. Tax slabs and rates under the new regime have been refined to enhance its appeal. However, is the recalibration of the new tax regime and the reduction in tax rates effectively countering annual inflation?

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New 25% tax rate for middle class, no tax on income up to Rs 8 lakh expected in Budget 2025

The Government's endeavour has been to promote the new tax regime, and personal tax changes in the last few Budgets have been made only for the individuals opting for new tax regime. Almost 72% of taxpayers opted for the new tax regime while filing tax returns for fiscal year 2023-24.

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Income tax appeal resolution typical time 15-20 years: Steps to cut appeal pendency urged in Budget 2025

India has an extensive tax appeals system that starts from the Commissioner of Income Tax Appeals to the Supreme Court. However, India's tax litigation numbers, pendency, and resolution time are significantly high.

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Income tax return filing deadline of July 31 needs to be extended: Will Budget 2025 provide this tax relief to salaried, other taxpayers?

Changes were made in the July Budget to reduce the complexity of the capital gains tax calculations and give some income tax relief to salaried individuals. In addition to individual taxpayers' expectations for tax breaks, there has been a long-standing ask for sufficient time after the financial year-end to complete income tax return filings.

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NRIs' expectations from Budget 2025: 9 changes that NRIs want in income tax rules

The simplification of ITR forms has been a welcome change for NRIs. However, e-verification of ITR form to successfully complete the filing process continues to pose certain challenges. Read our story to know more about the expectations among NRIs of changes in government policies.

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Income tax relief on Capital Gains Deposit Scheme: Can Budget 2025 offer clarity to taxpayers to easily claim exemption on LTCG of house sale?

Taxpayers should remember that tax-saving exemptions on capital gains are available on long-term capital gains (LTCG) only. No exemptions are available if the capital gains are short-term in nature.

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Will Budget 2025 give any income tax relief under old tax regime?

In 2020, the finance minister unveiled the new tax regime, which offered taxpayers the option to pay lower tax but forego most deductions and exemptions typically available for salaried taxpayers. The objective of the new regime was to reduce administrative hassles for employers and employees on the collation and verification of claims made related to deductions and exemptions, and to simplify the income tax return filing process.

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Taxpayers can now claim 87A tax rebate on special income as ITR utility software has been fixed; but it's subject to disputes and litigations

Final judgement on 87A tax rebate claim: The 67 page Bombay High Court judgement says yes taxpayers should be given the option to file their ITR with Section 87A rebate claim and the income tax department wrongly prevented this by modifying the tax utility post July 5, 2024. However, whether to honour such Section 87A tax rebate claims or not the Bombay HC said we need to decide this as and when scrutiny cases arise.

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Salaried employee can end up paying income tax on 14 months salary on job switch: Relief urged in Budget 2025

Changing jobs without serving the notice period can result in an unexpected income tax implication if the old employer recovers salary during a notice period. Let us examine this common yet overlooked issue and explore why it deserves attention in Budget 2025.

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Will Budget 2025 announce closure date of old tax regime under Income Tax Act?

Many tax experts expect changes in the income tax slabs under the new tax regime in Budget 2025. This is because the government, since the announcement of the new tax regime in Budget 2020, has made changes in the new tax regime only. No changes have been made to the old tax regime.

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What is AIS in income tax return filing and how is it important for taxpayers?

The Annual Information Statement (AIS) is a vital document introduced by the Income-Tax Department.

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Union Budget 2025: Will standard deduction limit be increased under the old, new tax regime?

As Budget 2025 nears, experts anticipate a possible hike in the standard deduction for salaried individuals and pensioners, potentially increasing it to Rs 1 lakh or more. This would provide significant tax relief and boost disposable income. Experts believe increasing the deduction will positively impact consumer spending and the economy, amidst the government's fiscal priorities.

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Income tax expectations from Budget 2025: Simplify income tax slabs, cut income tax rates, clarify residency laws, allow income tax refunds to overseas bank account

Changes introduced in the Union Budget 2024-25 indicate the Government's commitment to simplify the tax system, enhance compliance and promote financial stability towards the goal of Viksit Bharat.

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GST late fee waiver: Last opportunity to avoid GST notice due to non-filing of GSTR-9C, do this by March 31

Goods and Service Tax (GST): The government has announced waiver of late fees for filing GSTR-9C for FY 2017-18, FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22 or FY 2022-23. File GSTR-9C on or before March 31, 2025 and then request the GST proper officer to cancel the show cause notice (SCN) thereby stopping the GST demand.

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Income tax in Budget 2025: Why section 80D limit for health insurance premium must be raised and allowed in New Tax Regime

Budget section 80D: Rising healthcare costs have become a pain point for taxpayers and they demand an increase in tax deduction under section 80D for health insurance premium. However, post COVID there is a surge in the health insurance costs and the need for larger coverages has increased. Read below to know why a strong case for increase in section 80D limit makes sense.

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60 TDS rules with 10 TDS rates make life difficult for taxpayers: Can Budget 2025 cut TDS rates to 3?

Budget 2025: The Union Budget 2025 presents a crucial opportunity to streamline and simplify TDS and TCS rules, enhancing clarity, reducing disputes, and fostering a more business-friendly environment. Let's understand some key changes the Government should consider streamlining the TDS provisions in Budget 2025.

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Income tax on Bitcoins: Will Budget 2025 hike tax on Bitcoin ETF to flat 30% from 12.5% currently?

A crucial question regarding tax implications arises for an Indian resident investing in Bitcoin ETFs in the US market. The issue is whether the capital gains arising from the sale of Bitcoin ETFs should be subject to taxation under Section 115BBH, Section 50AA, or Section 112 of the Indian Income Tax Act, 1961.

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RERA Impact: Homebuyer wins Rs 2.26 crore compensation after a 10-year delay in possession of flat; Know which legal rules helped him

RERA: The Haryana Real Estate Regulatory Authority recently held a builder liable to pay interest compensation to a homebuyer who paid Rs 1.07 crore for a flat in 2013. In the last 10 years the builder kept on promising the construction would finish however it did not. Read below to find out what legal RERA provisions were used which made Haryana RERA to order Rs 2.26 crore compensation to the homebuyer.

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Alimony and Income Tax: Is ex-wife liable to pay income tax on settlement amount received from husband in a divorce case?

Alimony tax: Did you ever wonder if alimony is taxable for the ex-wife. This is because the alimony is paid by husband after paying all the due income tax. Experts say, various court judgements said, yes ex-wife has to pay tax on alimony. However in one situation husbands have to pay income tax on alimony paid to ex-wife. Read to know more.

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Budget 2025: Higher 87A tax rebate, deduction on home loan, income tax slab and more, what experts demand from FM to boost consumption

Budget 2025: Experts demand 87A tax rebate increase, accessible home loans, income tax slabs linked with inflation and others from the FM. A strong case for linking income tax slabs with inflation makes sense now. "By linking income tax slabs to inflation, India could protect the purchasing power of its citizens, especially for the middle class."

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Relief for more taxpayers in Vivad Se Vishwas Scheme: Govt removes these four difficulties in applying for closure of income tax dispute cases

Vivad Se Vishwas Scheme 2024: As per a new update now more taxpayers are eligible to apply for Vivad Se Vishwas Scheme and settle their pending income tax dispute cases. Under the Vivad Se Vishwas Scheme, taxpayers need to pay the disputed tax amount and then the government will cancel the litigation case and forgo all pending interest and penalty amount.

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Union Budget 2025: Will Budget 2025 bring 50K NPS related deduction u/s 80CCD(1B) to the new tax regime?

Union Budget 2025: NPS contributions of up to Rs 50,000 to the National Pension System (NPS) under Section 80CCD(1B) qualify for deductions only under the old tax regime, and this benefit is not available in the new regime.

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How this Pune-based marketing professional can save over Rs 10k in taxes by sticking to the old income tax regime

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

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Income tax on cash spending: These expenses will be considered as income and accordingly taxed if incurred in cash

Pay income tax on cash spends: ​If any liability towards unpaid expenditure is incurred by a person in a year and paid by such person in any subsequent year, any payment (or aggregate of payments) thereof exceeding Rs 10,000 in cash will be deemed to be the Profits and Gains of business or profession chargeable to income-tax as income of such subsequent year.

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Income tax benefits of NPS under both old and new tax regime for government and private sector employees

List of tax benefits of NPS: The National Pension Scheme (NPS) is a prominent investment option for individuals seeking to secure their retirement while benefiting from significant tax advantages. NPS is a savings scheme designed to help both government and private sector employees plan for their retirement. Read below to know more about income tax deductions for investing in NPS.

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Employees of only 3,604 start-ups are eligible for tax relief on ESOPs: Will Budget 2025 extend this relief to all start-ups, unlisted companies?

ESOP taxation rule in Budget 2025: The Budget 2020 has amended the taxation rules for ESOPs which provided tax relief to employees. However, this tax relief currently applies to employees of 3,604 start-ups in the country. There is a need to amend the current taxation rules so that more employees can be eligible for tax relief on ESOPs.

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Big relief for GST taxpayers: Protection against arbitrary arrest and coercion by GST officers; CBIC changes arrest and bail guidelines under GST

GST Arrest: Now a GST registered person can't be arbitrarily arrested and also coerced into admitting GST tax demand liability. This is because CBIC has amended the arrest and bail guidelines and now the GST officer has to give a detailed copy of the ground of arrest to the GST registered person being arrested. Experts say this will end coercion by field formations.

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ITR filing deadline: Last date to claim Section 87A tax rebate; do it now by filing revised ITR on or before January 15, 2025

Income tax deadline: The last date to file a revised income tax return (ITR) is January 15, 2025 as per the order of the Honourable Bombay High Court. CBDT also issued a notification about the same. Experts suggest taxpayers to utilise this deadline to file a revised ITR to claim section 87A tax rebate if eligible. Section 87A tax rebate reduced your tax liability to nil.

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New update on GST Amnesty Scheme waiver of penalty and interest: These taxpayers need to apply to appellate authority first to withdraw the appeal and then apply for the scheme

Goods and Service Tax: In a new advisory dated January 14, 2025 GSTN said certain taxpayers are are advised to submit their request for withdrawal of appeal applications to the concerned Appellate Authority. The Appellate authority will forward such requests to GSTN through State Nodal officer for withdrawal of such appeal applications (i.e. filed before 21.03.2023 and not disposed off) from backend.

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Government employees can get gratuity up to Rs 25 lakh: What is tax-exempt gratuity for private sector, government employees?

Tax-free gratuity limit for employees: The government has hiked the maximum amount of gratuity that a government employee can receive to Rs 25 lakh. The new limit is effective from January 1, 2024. However, not many are aware of the tax-exempt limit of gratuity for private sector and government employees.

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New GSTN advisory: GST registered suppliers must take note of these new changes made in GSTR-1 from January 2025

When you file GSTR-1 on or before February 11, 2025, the specified new rules will have to be followed otherwise the return will be considered faulty. If the supplier's GSTR-1 is faulty then the buyer's GSTR-2B will get populated with wrong details.

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Kolkata-based bank manager can save Rs 87K tax by opting for NPS benefits by employer and shifting to new tax regime

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

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Relief for GST taxpayers: Deadline for GSTR-1 and GSTR-3B extended after GSTN reported technical issues with the portal

GST return deadline: The deadline for GSTR-1 and GSTR-3B both, has been extended by 2 days each. GSTR-1 deadline is now January 13, 2025 while GSTR-3B deadline is now January 22, 2025. However for quarterly GSTR-3B filers the deadline has been extended to January 24 and 26, 2025 depending on the state.

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GST return filing deadline may be extended by CBIC as GSTN reports portal is experiencing technical difficulties

Goods and service tax: The Central Board of Indirect Taxes and Customs (CBIC) may consider to extend the GST return filing deadline as GSTN reports the portal is experiencing technical issues and is under maintenance. The deadline to file GSTR-1 is January 11, 2025 for the december tax period. If a supplier has not filed GSTR-1 then buyers can't claim input tax credit (ITC).

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New GSTN advisory: You can now file a rectification application to claim pending input tax credit; However, there is a catch

GSTR-3B: Now GST registered taxpayers can claim pending input tax credit relating to past years namely financial year 2017-18, 18-19, 19-20 and 20-21 by filing an online rectification application. GSTN said, "A functionality has now been made available on the Portal for taxpayers to file an application for rectification of such orders issued under section 73/74."

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These cash transactions may attract up to 100% penalty by Income Tax department

Penalty on cash transactions: Recently in a brochure the Income Tax Department has said that taxpayers should avoid using cash for their daily transactions as in certain specified cases penalty for an amount equal to the cash can be imposed. Moreover, the income tax department will disallow deductions if cash is used for transacting above a certain limit. Know the details.

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Big relief for GST taxpayers with multiple GST show cause notices running in multiple districts in Kerala

Goods and services tax notice: Now taxpayers get relief from multiple GST notices pertaining to similar issue as these multiple notices will now be heard by a common adjudicating authority. Experts say, "​This would lead to a consistency in the adjudication process, with a possibility of different adjudicating authorities taking different views is eliminated." Read below to find out the details.

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These salaried employees need to submit investment, expenditure proofs to employer to avoid full TDS on salary

TDS on salary: The income tax rules have changed in recent years. Due to this, not all salaried employees now have to submit investment and expenditure proofs to avoid full tax on salary. Employers have sent emails to the employees reminding them to submit tax-saving proofs to avoid higher tax deduction from salary.

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Good news for taxpayers: ITR forms to allow 87A tax rebate claims have now been updated however there is a catch

Income tax rebate u/s 87A: Eligible taxpayers who have income up to Rs 5 lakh/7 lakh can claim tax rebate under section 87A up to Rs 12,500/25,000. The Income Tax Department has now updated the excel utility to allow 87A tax rebate claims. "The updated excel utilities for ITR Forms 2 and 3 to exercise the option to update rebate u/s 87A for AY 2024-25 are now available."

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No Section 87A tax rebate despite ITR filing forms being updated recently: How to claim Section 87A tax rebate with deadline ending on January 15, 2025

87A tax rebate: The ITR filing utilites for ITR-2 and ITR-3 has been updated on January 4, 2025 however, the JSON schema is not yet updated and it still reflects logic as of July 5, 2024. This means you can file a revised or belated ITR now but the utility will not let you claim section 87A tax rebate if any special rate income like short term capital gains exists. Read the story to know how a makeshift solution can help you claim 87A tax rebate now.

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Best ways to save taxes: ELSS, NPS, ULIPs and 7 more investment options to maximise your tax saving this year

As the financial year inches towards the end, taxpayers are exploring tax-saving investments like ELSS funds, NPS, Sukanya Samriddhi Yojana, and more. Depending on your requirements, here is a list of tax-saving instruments you can invest in, ranked according to returns, safety, flexibility, liquidity, costs, transparency, ease of investment, and income taxability offered by each one of them. Read on to know more.

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GST Amnesty scheme waiver of interest and penalty: Step by step guide for eligible taxpayers to apply using GST SPL-02 form

GST Amnesty 2024: GSTN in an new advisory said now GST SPL-02 form has been made available on the GST portal. GST SPL-02 form can be used to apply for GST Amnesty Scheme waiver of interest and penalty. Read below to find out how to apply for GST Amnesty Scheme.

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Last opportunity for eligible taxpayers to claim 87A tax rebate: Why you must file revised/belated ITR before January 15, 2025

Income tax rebate u/s 87A: Following the Bombay High Court order to extend the revised and belated income tax return (ITR) deadline to January 15, 2025, CBDT has extended it. ​If you are eligible to claim section 87A tax rebate but prevented from claiming it in the original ITR then file a a revised return to get a tax refund for the excess tax paid in the original return.

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Deadline to declare foreign assets in ITR ends January 15, 2025: These two sources provide govt your foreign a/c info

Foreign assets in ITR: Indian residents must report their foreign assets and income in their income tax returns (ITRs) in accordance with the Indian Income-tax Act, 1961. The Indian government and its law enforcement agencies get detailed information about financial accounts held by Indian residents in foreign countries through two sources.

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Sold property for Rs 43.5 lakh, how can I pay lower long term capital gains tax, with or without indexation?

Long term capital gains tax: How can you pay lower tax if you sell a flat for Rs 43.5 lakh? Our panel of experts answers questions related to any aspect of personal finance. If you have a query, mail it to us right away.

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