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.
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.
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.
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.
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.”
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.
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.
Report Foreign Income in ITR: "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.
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.
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."
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.
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.
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."
Advance tax payment due date: The third instalment 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.
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.
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 will not 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.
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.
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.
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."
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.
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.
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.
ITR filing deadline for FY 2023-24 (AY 2024-25) extended: The income tax department has extended the income tax return (ITR) filing for FY 2023-24 (AY 2024-25) deadline for taxpayers having specified and international transactions to December 15, 2024, from November 30, 2024. The extension will help the taxpayers to avoid the penalty of belated ITR filing.
Get a new PAN on email: If you are an existing PAN card holder and want to get a PAN on email but there are no changes required in the income tax database, then you can use the facility mentioned below to get the PAN on your email. This facility can be used if the correct email address is updated in income tax records.
PAN 2.0 QR code: The government announced the PAN 2.0 project where the systems are being upgraded. The new design under PAN 2.0 comes with a QR code that can help taxpayers minimise the risk of fraud using their PAN number. Hence, even if the existing PAN cards are valid, then also taxpayers should apply for new PAN.
GST invoice verification: New advisory by GSTN in respect of availability of five official apps for e-invoice verification. Experts say that these apps solve a lot of problems like faster verification of e-invoices which may lead to faster claim of input tax credit and also help in reducing litigations and subdue the problem of fake GST invoices.
Income tax: Permanent Account Number (PAN) 2.0 have an inbuilt mechanism to check for duplicates. So if you have an duplicate PAN, make sure to surrender it before the government catches you. Also now might be a good idea to check if someone used your documents to apply for a duplicate PAN. Because if this is the case then only you will be held responsible for this and penalty might be levied.
Income Tax PAN 2.0: The Ministry of Finance has said: " The existing PAN card holders are not required to apply for a new PAN under the upgraded system (PAN 2.0). The PAN card will not be changed unless the PAN holders want any updation and correction. The existing valid PAN cards will continue to be valid under PAN 2.0."
Goods and Services tax: Pankaj Chaudhary, minister of state in the ministry of finance said in Lok Sabha that the government has earned Rs 4792.4 crore on taxing various education services which are currently not exemtp from GST. However certain education services still attract nil GST, read below to find what the minister said.
PAN 2.0 Project: The government has launched the PAN 2.0 project to upgrade the existing PAN card with QR codes. ET Wealth online spoke to tax experts to get insights on whether the current PAN card will become inoperative due to the absence of a QR code on it. Read on to know more details on their views.
Income tax: The govt has announced a new PAN 2.0 project with a total outlay of Rs 1435 crore. The government has also said that this new PAN 2.0 project will enable Common Identifier mechanism which has been a long standing demand of taxpayers. Read below to find out how the new PAN 2.0 might work in the same mechanims as Aadhaar card.
Ludhiana-based finance professional Ratul Mohindra pays a high tax even though his salary is fairly tax-friendly. TaxSpanner estimates suggest Mohindra can reduce his tax by almost Rs.25,000 if his company offers him the NPS benefit.
Income tax: The Income Tax Department has data from Germany and other countries about its residents having foreign properties and assets and incomes. According to Sandeep Jhunjhunwala, Partner, Nangia Andersen LLP, many foreign countries now exchange more granular and updated financial information, enabling Indian tax authorities to better identify undisclosed foreign income and assets.
Goods and services tax: The deadline to file GSTR-3B was November 20, 2024 and November 21, 2024 for Maharashtra and Jharkhand. If you have missed filing this return then do note the penalty for non filing of GST return may even result in cancellation of GST registration if you do this for straight six months. File GSTR-3B by paying a late fee by November 30, 2024 to claim any pending input tax credit for FY 2023-24.
Direct Tax code: The government has started the consultation process for reviewing the Income Tax Act, 1961. The review is being done to reduce litigation and make it easy to understand for the common man. There are certain provisions currently under the Act where non-complying can lead to jail time for taxpayers.
ITR Filing: The Central Board of Direct Taxes recently issued a circular for condonation of delay in filing ITR. The latest circular has reduced the time limit for applying for condonation of delay. This condonation of delay request is filed by a taxpayer to claim old income tax refunds and carry forward of losses and set off.
Income tax lounge at Pragati Maidan, New Delhi: Now you can visit the income tax lounge at India International Trade Fair (IITF) near Supreme Court metro station in Delhi. In this lounge you can ask various tax queries to the income tax department officers and get advise and help too in this regard.
Income tax relief: The income tax department has released new rules for granting condonation of delay requests in filing specified forms. These forms are used to apply for lower rate of income tax by various taxpayers like trusts, institutions, corporates, etc. Read here to know more about how to claim income tax relief.
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.
