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#news Income tax notice! 2 weeks ago the tax department sent a notice for defective income tax return (ITR) but after 6 days of sending it they recalled it saying it was an "error". Its like I give you a tight slap on the face then after 6 days say, "sorry I regret this". As per CA Ashish Niraj, "Taxpayers who have any gross receipts or turnover not exceeding Rs 2 crore can file ITR under section 44AD by opting for it. In other words, if the total turnover or gross receipt of the taxpayer exceeds Rs 2 crore then the scheme of section 44AD cannot be adopted. Under section 44AD, the taxpayer needs to declare 6% or 8% of the gross receipts or turnover as their income. The taxpayer also does not need to file their balance sheet or Profit & Loss statement if opting for an ITR filing under Section 44AD. This communication by the tax department is a relief and solidifies the fact that taxpayers were right and filed a correct ITR." However, a situation can happen when a taxpayer in self-doubt files a revised ITR in response to this erroneous notice. What happens then? As per Rahul Charkha,"Since there was a gap of 6 days in the communication by the department, there may be a situation where taxpayers may have filed a return of income against the defective notices issued. In cases where a return of income is filed by the taxpayer between 29 November and 5 December (with or without rectifying the defect), against the defective notices issued, then it will get processed and an intimation order under Section 143(1) of the Income-tax Act, 1961 would be passed by the Income tax department. However, it is important to note that there is no such limit for filing the revised return of income by the taxpayer. Accordingly, in case any taxpayer wants to file the revised return for incorporating any changes in the original return filed for FY 2023-24, then the last date for filing such a revised return is 31 December 2024. The last revised return of income filed by the taxpayer would be treated as a corrected return for issuing an intimation order under Section 143(1) of the IT Act, 1961." As per CA Himank Singla, "We all know that the Income Tax Department and CPC has began using AI based softwares to prevent revenue leakages in various instances and hence have been issuing notices for defective ITR under section 139(9) for past 2-3 years where prima facie mismatch or error exists in the ITR filed by taxpayers. As recently as 29th November 2024, the Income Tax Department had sent wrong and illogical defective notices to many assessees - pointing out the error that assessee had offered presumptive income under section 44AD of the Act but in reality, the business books of almost all such assessees were audited and ITR-3 was duly filed by submitting the tax audit reports and filling Schedule-BS & Schedule-PL in the same ITR." With inputs from MIHIR ASHOK TANNA. #tax Economic Laws Practice (ELP) S K Patodia & Associates LLP

Income Tax Notices: Stay Alert and Informed! 📝🚨: Part 1 of Article 15 Hello, Tax Warriors! Welcome to the grand finale of our Income Tax Awareness Series. Today, we’re diving into a topic that can make anyone nervous: Income Tax Notices. Don’t worry, we’ll make it simple and clear! Ready to decode? Let’s go! 🚀 What is an Income Tax Notice? 🤔 An Income Tax Notice is a communication from the Income Tax Department indicating discrepancies or issues in your tax returns. It’s a way for the government to ensure compliance and transparency in tax filing. Why are Income Tax Notices Important? 💼 Uses: • Ensures Accuracy: Helps rectify mistakes in your tax returns. • Promotes Compliance: Encourages accurate and honest tax declarations. • Checks Evasion: Prevents tax evasion by scrutinizing returns. Benefits for the Government 📊 • Increases Revenue: Ensures all due taxes are collected. • Builds Trust: Encourages taxpayers to be honest, fostering a trustworthy tax environment. • Improves Compliance: Helps in maintaining a robust tax system. Key Points About Income Tax Notices 📌 1. Types of Notices: o Section 139(9): Defective return notice. o Section 143(1): Intimation of adjustments made by the IT department. o Section 143(2): Scrutiny notice for detailed verification. o Section 148: Reassessment of income for past years. o Section 156: Demand notice for outstanding tax dues. 2. Common Reasons for Receiving Notices: o Mismatch in TDS: Discrepancy between TDS claimed and TDS reported. o Undisclosed Income: Income not reported in the return. o High-Value Transactions: Large transactions that don't match your income. o Defective Return: Errors or omissions in the filed return. 3. How Notices are Generated: o Automated System: Notices can be generated automatically based on data mismatches. o Manual Scrutiny: Specific cases may be selected for detailed examination. Examples 📝 • Mismatch in TDS: You claimed ₹50,000 as TDS, but Form 26AS shows ₹45,000. You may get a notice to explain the difference. • High-Value Transactions: If you deposited a large sum in your bank account but didn’t report it, you might receive a notice. How are Notices Generated? ⚙️ Notices are generated based on the following: • Data Matching: Automated systems match your income and tax details. • Risk Assessment: High-risk profiles may be scrutinized. • Random Selection: Some cases are selected randomly for detailed scrutiny. Stay Tuned! In our upcoming Part 2 of this article, we will learn how to reply to Income Tax Notices and manage them effectively. Have questions or suggestions? Drop them in the comments below! 💬👇 #IncomeTax #TaxNotices #TaxCompliance #FinancialAwareness #StayInformed #TaxFiling #EasyTaxFiling

Income Tax Returns: What are the penalties for late filing of returns? Understand tax extensions and their financial impact The Income-tax Department has provided taxpayers who have missed the original tax filing deadline with an opportunity to file a belated return before the end of the calendar in which the return was to be filed i.e., 31 December. Thus, the time limit for filing a belated return for AY 2024-25 will be 31 December 2024. As the Financial Year (“FY”) draws to a close, it is time for taxpayers across the country to initiate their annual ritual of filing their income tax returns (“ITR”). As per reports, the total number of income tax returns filed during the Assessment Year (“AY”) 2022-23 reached 7.51 crores, which is a significant increase from 6.63 crores in AY 2021-22. And in the AY 2023-24, more than 8.18 crores returns were filed. For the FY ended on 31 March 2024, the due date for individuals to file their ITRs falls on July 31, 2024. However, filing ITRs can be a time consuming process and may be particularly difficult for individual taxpayers to understand the various schedules and disclosures required to be made while filing their ITRs. Individuals find it difficult to collate all the necessary data and keep a track of the expenses incurred by them in the previous year at the time of filing returns and hence, there is a high possibility of missing the due date for filing returns. Thus, many individuals seek some extra time to file their tax returns and avoid any potential action from the Income tax authorities. The Income-tax Department has provided taxpayers who have missed the original tax filing deadline with an opportunity to file a belated return before the end of the calendar in which the return was to be filed i.e., 31 December. Thus, the time limit for filing a belated return for AY 2024-25 will be 31 December 2024. However, a tax-payer filing a belated return will be liable for a penalty amounting to Rs. 1,000 if the income in below Rs.5,00,000 and a penalty of Rs. 5,000 if the income is above Rs. 5,00,000 in addition to penalty in the form of interest and loss of certain benefits normally available to on-time filers. Hence, tax compliance becomes a legal obligation, and every taxpayer must prioritize responsible financial practice for a smooth and hassle-free transition. Here are more details about the implications of late filing of income tax returns and explore the options available for seeking extensions. If you have incurred losses, like business and capital losses, they cannot be carried forward and set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late. Read more: https://shorturl.at/aMjyF #IncomeTax #TaxReturns #LateFiling #TaxPenalties #TaxExtensions #FinancialPlanning #TaxCompliance

How the New Income Tax Guidelines Impact You as a Taxpayer? The CBDT (Central Board of Direct Taxes) has introduced new guidelines for selecting tax returns for mandatory scrutiny for the financial year 2024-25. Here’s what this means for you as a regular taxpayer: What is Scrutiny? Scrutiny is a detailed examination of your tax return by the Income Tax Department. They check if all the information provided is accurate and if you’ve paid the correct amount of tax. Key Points That Might Affect You: 1.Survey Cases: >If you’ve been subject to a tax survey and it shows signs of tax evasion, your return will automatically be scrutinized. >Approval from senior tax officials is required, and these cases are handled quickly. 2.Search and Seizure Cases: >If you’ve had a search or seizure operation, your tax returns will be thoroughly checked. This applies to operations both before and after April 1, 2021. >Senior tax officials will oversee these cases. 3.Not Filing a Return: >If you received a notice to file a return but didn’t respond, your case will be scrutinized by a special center (NaFAC). 4.Notice under Section 148: >If you received a notice because of a search, seizure, or survey and filed (or didn’t file) a return, expect scrutiny. >These cases are also reviewed and handled by senior officials. 5.Registration/Approval Matters: >If your tax-exempt status was denied or canceled but you still claimed exemptions, your return will be scrutinized. 6.Recurring Tax Issues: >If you’ve had recurring tax issues resulting in large tax additions (over Rs. 25 lakh in metro cities or Rs. 10 lakh elsewhere) that were upheld or not appealed, your return will be checked. 7.Specific Tax Evasion Information: If an agency reports specific tax evasion and you filed a return for that year, expect your return to be scrutinized. What Should You Do? 1.Stay Informed: Be aware of the guidelines and ensure your tax return is accurate and complete. 2.Respond to Notices: If you receive any notices, respond promptly and provide the necessary information. 3.Seek Professional Help: If you’re unsure about your tax return, consult a tax professional to ensure everything is in order. Important Dates: 1.May 31, 2024: Deadline for selecting and transferring cases. 2.June 30, 2024: Deadline for serving scrutiny notices. Why This Matters: These guidelines are designed to ensure everyone pays their fair share of taxes and to catch tax evaders. For most honest taxpayers, there’s no need to worry as long as your tax return is accurate. If you need help understanding these guidelines or have questions about your tax return, feel free to reach out to us at Integra Books.We’re here to help you navigate the complexities of tax regulations and ensure your financial peace of mind. #incometax #taxes #india #business

Gearing Up for the Income Tax Return Deadline in India Taxpayers in India are preparing for the impending deadline as the clock ticks closer to the last date for filing Income Tax Returns (ITR). With July 31, 2024, looming as the cutoff, individuals across the nation are urged to ensure timely submission to avoid incurring additional charges or penalties. Significance of Adhering to the Deadline The Income Tax Department has reiterated the significance of adhering to the deadline, emphasizing that late filings will result in a late fee of Rs. 500 per month, up to a maximum of Rs. 1,000. This announcement comes as the department reports that ITRs 1, 2, 4, and 6 have already been made available on the e-filing portal since April 1, 2024. Impressively, over 23,000 returns have been filed for the 2023-24 fiscal year, showcasing an early surge in compliance. Departure from Tradition Notably, this year marks a departure from tradition, with taxpayers granted the opportunity to initiate their tax return filings on the very first day of the new financial year. Such measures are hailed as a significant stride towards simplifying compliance procedures and enhancing taxpayer services. Simplified Filing Process Among the available forms, ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) stand out as simpler alternatives, catering to the needs of small and medium taxpayers. Sahaj is tailored for resident individuals with income up to Rs 50 lakh, encompassing earnings from salary, one house property, other sources such as interest, and agricultural income up to Rs 5,000. On the other hand, Sugam is designed for individuals, Hindu Undivided Families, and firms (excluding Limited Liability Partnerships), with total income up to Rs 50 lakh, predominantly deriving from business and profession activities. Advance Tax Payment Obligations In light of these developments, taxpayers are reminded that the obligation to pay advance tax arises when their overall tax liability reaches or exceeds Rs. 10,000 within the financial year. Moreover, any tax payments made on or before March 31 of the same financial year are duly recognized as advance tax, offering further clarity on tax compliance obligations. Key Deadlines and Obligations Key Points: Deadline: July 31, 2024 Penalty for Late Filing: Late fee of Rs. 500 per month, up to a maximum of Rs. 1,000. ITR Forms Available: ITRs 1, 2, 4, and 6 are available for e-filing as of April 1, 2024. Simplified Forms: ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) cater to small and medium taxpayers. First Day Filing: Taxpayers can file their ITRs on the first day of the new financial year for a smoother filing process.

ITR filing 2024: How filing wrong income tax return form can cost you heavy penalty Filing your income tax return can be a highly stressful task this year. Waiting until the last minute only adds unnecessary worry that you can easily avoid. With deadlines approaching, now is the critical time to do so if you haven't organised your paperwork yet. However, be cautious of common mistakes, which can lead to significant issues. Selecting the appropriate ITR form Choosing the correct ITR form for filing your returns is crucial. This ensures that the income tax department can process your return accurately. The choice of the ITR form depends on the type of income and the taxpayer's category. "For the financial year 2023-24, the Income Tax Department provides seven forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7, designed for various income sources and taxpayer categories such as individuals, HUF, and companies. Choosing the correct form is essential to ensure adherence to tax regulations," stated Abhishek Soni, CEO and Co-founder of Tax2win. The tax department has issued tax return forms with clear instructions on which form can be used by which taxpayer. Aarti Raote, Partner at Deloitte India, explained, "For instance, if a taxpayer earns income from capital gains or has total income exceeding ₹50 lakh, they cannot use Form 1. Using the incorrect form could result in the tax return being deemed invalid, potentially leading to missed information or unreported income. This may incur interest and penalties." Quoting the wrong assessment year When filing returns, providing the correct Assessment Year (AY) is crucial. According to Tax Expert Manikandan S from Cleartax, "For FY 2023-24, the corresponding AY is 2024-25. Incorrectly mentioning the AY can lead to potential issues such as double taxation and unnecessary penalties." Why should you file your income tax return with utmost care?   "File your income tax return diligently to avoid penalties or tax notices due to errors," advised Manikandan S. "Maintaining accurate records, claiming eligible deductions, and reporting all sources of income ensure compliance with tax laws and accurate tax payments." Abhishekh Soni added, "Taxpayers can file a revised return if they mistakenly use an incorrect form. However, deliberate underreporting or choosing the wrong ITR form, leading to incorrect income disclosure, can result in penalties ranging from 100% to 300% of the tax amount due." What is the deadline for filing an ITR? The last date to file an income tax return (ITR) for the Financial Year 2023-24 (Assessment Year 2024-25) is July 31, 2024. If you miss this deadline, you can still file a belated return by December 31, 2024. Read More: https://shorturl.at/uMDZ3 #ITRFiling2024 #IncomeTax #TaxReturn #TaxPenalty #TaxCompliance #TaxFilingMistakes #ITRForm #TaxAdvice #FinancialPenalty #TaxPayers

Request for Extension of Income Tax Return Filing Due Date to 30th August 2024 To, The Honorable Chairperson, Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Government of India. Respected Sir/Madam, We, hereby bring to your attention the various challenges and technical issues taxpayers and professionals are facing while attempting to file income tax returns for the assessment year 2024-25. In light of these difficulties, we respectfully request an extension of the due date for filing income tax returns from 31st July 2024 to 30th August 2024. The points of concern are detailed below: 1. Technical Glitches on the ITD Portal: - Frequent downtimes and slow response times of the Income Tax Department (ITD) e-filing portal. - Issues with OTP generation and validation, causing delays in the verification process. - Intermittent errors while uploading ITR forms, resulting in repeated attempts and increased frustration. 2. Error Messages and Bugs: - Unexplained error messages appearing during the filing process, with no clear guidance on resolutions. - Instances of submitted returns not reflecting in the system, leading to confusion and duplicate submissions. 3. Challenges with New Portal Features: - Navigation difficulties and unfamiliarity with the new portal features introduced this year. - Insufficient time for users to adapt to the changes and understand the new functionalities. 4. High Volume of Traffic: - Increased traffic on the portal as the deadline approaches, exacerbating existing technical issues and causing significant slowdowns. - Inability to access the portal during peak hours due to server overload. 5. Compliance and Documentation Delays: - Delay in receiving necessary documents from third parties, including Form 16, Form 16A, and TDS certificates. - Additional time required to reconcile differences and ensure accurate filing. 6. Confusion Regarding New and Old Tax Regimes: - Significant confusion among taxpayers regarding the choice between the new and old tax regimes. - Need for additional time to analyze and select the most beneficial regime for each individual taxpayer. 7. Errors While Updating Sale and Purchase of Equity Shares or Mutual Funds: - Frequent errors occurring when updating information related to the sale and purchase of equity shares and units of mutual funds. - Necessity to repeatedly correct and re-enter data, leading to delays in the filing process. Given the above challenges, we earnestly request the Central Board of Direct Taxes (CBDT) to consider extending the due date for filing income tax returns to 30th August 2024. This extension will provide much-needed relief to taxpayers and professionals, ensuring accurate and timely compliance without undue stress and inconvenience. We hope that our humble request will be considered favorably, and necessary steps will be taken to address the concerns raised.

The Income Tax Department intends to pursue legal action against over 1.5 crore individuals https://ift.tt/OBuVJI9 The Income Tax Department intends to pursue legal action against over 1.5 crore individuals Income Tax Department Action: Identifying the specific defect and the individuals it would be tightening the noose around, the Income Tax Department of the nation is clamping down on taxpayers and entities that file income tax returns irregularly. Income Tax Department Action: You may find this news helpful if you submit an income tax return. Currently, the Indian Income Tax Department is implementing severe measures. He is tightening the screws on people who file income tax returns with errors, who fail to pay taxes even after reaching the threshold, or who pay less in taxes. A report about this has surfaced. 1.52 crore individuals who have income or who have paid Tax Deducted at Source (TDS) but have not submitted their forms have been discovered by the nation's Income Tax Department. There's news! The Income Tax Department is going to launch a campaign against those people and organizations that need to submit their income tax returns (ITRs) but haven't yet. The Income Tax Department found 1.52 crore people. Economic Times, a journal and website covering business matters, said that the Income Tax Department has identified 1.52 crore individuals who either have income or have not submitted their returns even if they have deposited TDS. The Central Board of Direct Taxes has requested that these defaulters be contacted by field formation by April 15th, according the aforementioned report. More taxpayers, less returns! About 8.9 crore income tax payers and 7.4 crore submitted returns for the fiscal year 2022–2023 (according to an official). The official said that updated returns are included in the total number of returns. This means that, even after TDS deduction, there may have been 1.97 crore individuals who failed to submit an ITR. 1.93 crore of the people who failed to submit their taxes were individuals, 28,000 were members of Hindu Undivided Families (HUF), and 1.21 lakh were businesses. The remainder, apart from this, belonged to other categories. Guidelines provided to field officers According to the study, there were several cases where there were a lot of bank transactions linked to PANs, necessitating the filing of an ITR. The Income Tax Department has instructed field officers to get in touch with these individuals, provide accurate data and information, and clarify to them the need of filing an ITR. Approximately 8,000–9,000 prospective taxpayers are receiving tax notifications, according to statistics from CBDT. The government has records of large ticket sales and substantial cash deposits made against these individuals. Willful defaulters will pay a penalty. Those who are discovered to be deliberate defaulters will be penalized, but taxpayers who can legitimately explain their unexpected income may also ...

Filing a Belated Income Tax Return: Key Details If you've missed the deadline to file your Income Tax Return (ITR), you can still file it as a belated return under Section 139(4). While filing the belated return, you must select Section 139(4) of the Income Tax Act. What is a Belated Return? A belated return is filed after the original due date (e.g., 31st July for individuals) but before 31st December of the relevant assessment year. While there are penalties, filing a belated return is better than non-compliance. Penalties under Section 234F and interest u/s 234A may apply, depending on your tax liability and the delay in filing. Taxpayers must ensure the return is filed before 31st December of the relevant assessment year. Belated returns provide a second chance for taxpayers to comply with their obligations and avoid legal consequences for failing to file on time. Eligibility Criteria for Filing a Belated Return There are no specific eligibility restrictions for filing a belated return; it applies to anyone who was required to file an Income Tax Return (ITR) but failed to meet the original deadline. Who Must File an ITR?: Filing an ITR is mandatory in the following scenarios: Income Threshold Old Tax Regime: If your total income exceeds ₹2,50,000 (basic exemption limit). New Tax Regime: If your total income exceeds ₹3,00,000. (Note: Higher exemption limits apply for senior citizens and super senior citizens.) Specified Transactions You deposited more than ₹1 crore in aggregate in a current account during the financial year, including accounts with banks or cooperative banks. You incurred foreign travel expenses exceeding ₹2 lakh in the relevant financial year. Your total electricity consumption bills exceeded ₹1 lakh in the financial year. Other Cases If you have capital gains or other taxable income, even below the basic exemption limit, and certain conditions apply. To claim a tax refund, even if your income is below the taxable threshold. Penalties and Drawbacks of Filing a Belated Return Interest Under Sections 234A, 234B, 234C: Interest is charged for late payment of taxes. Late Fee Under Section 234F: Income up to ₹5 lakhs: ₹1,000. Income above ₹5 lakhs: ₹5,000. No late fee if income is below the taxable limit. Losses Cannot Be Carried Forward: Losses (except house property losses) cannot be carried forward for future adjustments. Deductions/Exemptions Disallowed: Certain deductions under Sections 10A, 10B, 80-IA, etc., are unavailable if filed after the deadline. Refund Delays: Filing late may delay any refunds due. No Revision Beyond Deadline: A belated return can be revised, but only up to 31st December of the relevant assessment year. https://lnkd.in/gJK92m8u

Belated ITR The Income Tax Act of 1961 offers taxpayers the option to file a belated ITR should they miss the initial deadline for submitting their returns. This provision is covered in Section 139(4) of the Income Tax Act. The Indian Government requires all individuals, families, companies, partnerships, and other entities to pay taxes on their earnings. An Income Tax Return (ITR) is a form where you share details about your income and taxes with the Income Tax Department. Your tax amount is calculated based on your income. It’s mandatory to file the ITR each year before a specified due date. Key Dates for AY 2024-25 The deadline to file Income Tax Returns (ITRs) for the assessment year 2024-25 is July 31st, 2024 The government hasn’t extended this deadline as of now. If you missed the July 31st deadline, you can still file a Belated ITR by December 31, 2024 Belated ITR Explained: If you submit your income tax return after the original due date, it’s termed a ‘belated return.’ However, there’s a penalty fee that you need to pay as per the Finance Act. Filing a belated ITR follows a similar process to filing before the deadline. But when filling out the form, select section 139(4) instead of 139(1). Penalty and Late Fees: If you missed the initial deadline of July 31, 2024, you can still file a belated ITR, but there’s a penalty fee. From Assessment Year 2021-22, the late filing penalty was reduced to Rs 5,000 from Rs 10,000. The penalty amount is Rs 5,000, but if your total income is below Rs 5 lakh, the fine is Rs 1,000. Exemption and Consequences: Those with income below the exemption limit don’t need to pay any late fee. Not filing ITRs on time can be costly; penalties for belated ITR can reach up to Rs 5,000. For individuals with income under Rs 5 lakh, the maximum penalty is Rs 1,000. There’s also an interest charge on unpaid tax liabilities for belated ITRs. Carrying Forward Losses: If you file your ITR after the due date, you can’t carry forward losses under most income categories. However, you can still carry forward losses under the ‘income from house property’ category. New Tax Regime and Belated ITRs: While submitting a belated ITR for AY 2024-25you can’t opt for the new tax regime. This option is available only for those who file their ITR on time. In summary, the Income Tax Act allows taxpayers a chance to file their returns after the deadline. This belated ITR process comes with penalties and restrictions, so it’s important to file on time. Remember, filing taxes correctly and promptly ensures you stay compliant with tax laws and avoid unnecessary financial burdens This is all information about belated ITR If any one wants more information so contact me and dm me https://wa.me/919728454295 #incometax #itr #incometaxreturn #belatedreturn #taxretrun #taxtime #incometaxdepartment #return #trading #post #top #search #