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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

Changes to Personal Income Tax (PAYE) per the Income and Business Tax Amendment (Bill) 2024 Explained Prepared by: Summit Accounting .Bz Effective Date: January 01, 2025. Relevant Changes to the Calculation of Income Tax (PAYE) Payable: As it relates to personal income tax (PAYE): The Four basic income tax deductions under section 16 will be repealed and replaced by only the following 2 basic deductions: Subsections 16 ( 1) , (2), and (3) will be repealed and replaced with the following: 1. In ascertaining the chargeable income of an employed individual who is resident in Belize, there shall be allowed a basic deduction in the case of an employed individual whose total income in a basis year from all sources exceeds twenty-nine thousand dollars-------------- $20,000.00, Provided that in the case of an employed individual whose total income in a basis year from all sources exceeds twenty-nine thousand dollars but does not exceed thirty two thousand dollars, a tax credit equivalent to the sum of two thousand two hundred fifty dollars ($2,250.00) less seventy five percent of the difference between total income and twenty-nine thousand dollars ($29,000.00). For example: A person earning $31,500 will now pay income tax as follows: Gross Income ------ $31,500 Less: Basic standard deduction per new section 16 (1) above…… -$20,000 Equals the chargeable income ------ $11,500 Multiplied by the standard tax rate ----X25% Equals tax payable before tax credit ----- $2,875 Less tax credit……………………………… -$375 (calculated as: $2,250 – ($31,500-$29,000)x75% per new section 16(1) above Equals final income tax payable ---- $$2,500 Or more simply put, the income tax payable on any earnings between $29,001 and $32,000 is the difference between the gross income less $29,000….using the same example above, the quicker way to calculate the tax payable would be as follows: $31,500 - $29,000 = $2,500 This is such that anyone earning more than $29,000 but less than $32,000 p.a. is not disenfranchised for earning more than $29,000 but less than $32,000 and still gets to take home the non-taxable amount of $29,000 p.a. If you earn more than $32,000 the basic deduction is the $20,000 and the $100 basic allowance that was there before is no longer allowed. For example, a person earning $36,000 p.a. will now pay tax as follows: ($36,000 - $20,000) X25% = $16,000 X 25% = $4,000 for the year. To get the amount of income tax deductible and payable per week, bi-weekly, semi-monthly, or monthly, simply divide the annual total by: - 52 in the case of weekly, - 26 in the case of bi-weekly, - 24 in the case of semi-monthly, and - 12 in the case of monthly payments Note: by repealing subsection 16(3), the basic relief of $100 is no longer applicable.

💡 Understanding Section 148 of the Income Tax Act - Income Escaping Assessment. What is Section 148 ? 💠 If the Assessing Officer has " reason to believe " that a taxpayer has not disclosed complete income or has provided an inaccurate representation of it, officers can commence proceedings under this section. What is "Reason to believe" here means? 💠 There must be supporting material to allege that income has escaped assessment. A simple assertion of ‘reason to believe’ is not enough to validate the issuance of a notice under Section 148A. Procedure to issue Notice Under Section 148 ? 💠 Before Issuing Notice under 148 Inquire is made under Section 148A ,providing information and adverse material suggesting that income has escaped assessment i.e. The Show Cause Notice. The taxpayer can respond with their own material and evidence. 💠 After considering the taxpayer's response, the income tax officer will decide whether to issue a notice for reassessment under Section 148. If the officer decides to reopen the case, they must provide a copy of the order and a notice under Section 148 to the taxpayer. What is the Time Period for issuing Notice Under Section 148 ? a) Normal time limit: 3 years from the end of the relevant assessment year. b) Specified time limit: If 3 have passed but not 10 years from the end of the relevant assessment year and the Assessing Officer has evidence of income amounting to Rs 50 lakhs or more that has not been taxed. Can Notice be issued if Procedure Laid in IT Act is not followed by assessing Officer ? 💠 Any notice issued under Section 148 without following the procedure under Section 148A (i.e., without giving an opportunity to be heard) would be invalid and against the provisions of the Income Tax Act. The courts have consistently emphasized that the procedure outlined in Section 148A must be strictly followed in accordance with the legislative intent of introducing the new provisions. What If Assessee Do Not respond to Notice under 148 ? 💠 Assessing Officer has the authority to carry out the assessment using the information at hand. Basically, they can make an estimate of the assesses income and evaluate it to the best of their judgment .i.e. Best Judgement assessment . What If Assessee Disagree with the assessment ? 💠 Assessee has the option to file an appeal with either the Commissioner of Income Tax (Appeals) or the Income Tax Appellate Tribunal. Stay compliant and avoid surprises during tax season! Hope this helps in understanding this important tax provision. #IncomeTax #Section148 #TaxCompliance #Taxation #IncomeEscapingAssessment #TaxPlanning

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

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 ...

Income Tax Return filing deadline is exactly 70 days from today. The Income tax department has already released all the relevant forms. The last date to file Income Tax Return (ITR) for FY 2023-24 (AY 2024-25) without a late fee is 31st July 2024 (for those whose books of accounts are not required to be audited) and it is quite vital to choose the form carefully. For instance, 🌟 ITR-1 is meant for taxpayers having total income up to ₹50 lakh from salaries, one house property, other sources and agriculture income up to ₹5,000 🌟whereas if your income is coming from profits and gains of business or profession, you need to opt for ITR-3. 🌟Similarly, ITR 4 is for taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income-tax Act,1961.  🌟However, if the turnover of the business mentioned above exceeds Rs. 2 crore, the taxpayer will have to file ITR-3. 🌟ITR 2 is for Individuals and HUFs not having income from profits and gains of business or profession. 🌝 Yaha tak toh I hope everybody knows whosoever files it 🌝 ✅An additional Requirement✅ However, from this financial year the new tax regime has been set as the default tax regime. (means if you don't specify your intent to choose the old regime, then you automatically enrolled in the new regime). The persons which do not have any professional or business income can opt out of the new tax regime directly at the time of filing tax returns. whereas, the persons having income from business and profession are mandatorily require to submit a new Form 10-IEA in order to indicate the preference for the old tax regime within the specified time frame under section 139(1) if they want to switch their tax regime from new to old or if they want to re-enter in the new scheme. Therefore, in order to get the benefit of filing of Form 10-IEA, it is advisable to file the form before filing of Income Tax Return as the acknowledgement Number and date of filing of Filed Form 10-IEA are required to be provided in the Income Tax Return. ❌ Hurry! Don't forget to file your ITR as well as 10 IEA (if applicable) still ample time left❌ I welcome inputs/comments/suggestions from readers. Feel free to connect me, educate me. Happy Linkeding 😊 #itrseason #directtaxes #learning #compliances #incometaxlaw #incometaxreturn #caprofession #deeptimishra

What is AIS & TIS and how it will be helpfull in filing Income Tax returns? The Annual Information Statement (AIS) and the Taxpayer Information Summary (TIS) are key tools provided by the Income Tax Department in India to facilitate accurate and comprehensive filing of Income Tax Returns (ITRs). Here’s a detailed overview of what AIS and TIS are, and how they can be beneficial in the tax filing process: Annual Information Statement (AIS) Definition and Purpose: AIS is a comprehensive statement that includes details of a taxpayer’s financial transactions from various sources. It is designed to provide a holistic view of the financial activities that have tax implications. The AIS is populated with data collected from multiple entities such as banks, mutual funds, and other financial institutions which report these transactions to the Income Tax Department. Contents: The AIS includes information about income from salaries, interest, dividends, securities transactions, mutual fund purchases and redemptions, property transactions, and more. It also includes details of taxes deducted at source (TDS), taxes collected at source (TCS), and other taxes paid. Usage: Taxpayers can review their AIS to ensure all their financial transactions are accurately reported. It helps in cross-verifying the data with their own records and correcting any discrepancies before filing the ITR. Taxpayer Information Summary (TIS) Definition and Purpose: TIS is a subset of AIS and provides a summarized view of the information relevant to the taxpayer. It aims to simplify the data for easier understanding and utilization. Contents: The TIS contains summarized information categorized into different sections such as salary income, interest income, dividend income, capital gains, etc. It presents the information in a manner that is more accessible and easier to comprehend compared to the detailed AIS. Benefits in Filing Income Tax Returns Accuracy and Completeness: Both AIS and TIS help taxpayers ensure that all their financial transactions are accurately reported in their ITR. This reduces the chances of errors or omissions. By cross-checking the information in AIS and TIS with their own records, taxpayers can ensure that all income sources are accounted for, leading to a more accurate return. Error Identification and Correction: Taxpayers can identify discrepancies in the reported transactions. If any information is incorrect or incomplete, they can provide feedback through the e-filing portal, which will be reviewed and corrected by the source entities (Press Information Bureau (PIB)) (ClearTax Chronicles). Transparency and Compliance: AIS and TIS promote transparency by giving taxpayers visibility into the information the Income Tax Department has on their financial activities. This helps in voluntary compliance as taxpayers are more informed and can ensure their returns are accurate and complete. KAZ & Associates Chartered Accountants

Does a notice/ message received from Income Tax department early morning on your phone/ email scare you? Today morning my client called me at 7:00am saying, Client: Madam, please consider this urgent, I have just received this email from Income Tax Department. Please check and guide me if everything is alright with my filings. Professional: Please calm down and send the details. I will shortly get back. On this note, let us understand the about Intimation under sections 143(1) of the Income tax Act, An intimation under Section 143(1) of the Income Tax Act is a communication from the Income Tax Department to a taxpayer after processing their income tax return (ITR). This intimation serves as a preliminary assessment of the taxpayer's return and includes a summary of the department's computation of the taxpayer's income, tax liability, and any discrepancies or adjustments made. Key Aspects of Intimation under Section 143(1): 1. Purpose: The intimation is meant to inform the taxpayer whether the income and tax calculations they submitted match those computed by the department. It highlights any discrepancies, errors, or adjustments, which could result in additional tax liability, interest payable, or a refund due. 2. Scenarios for Issuance:    -Tax Refund: If the department finds that the taxpayer is entitled to a refund after adjustments.   -Additional Tax Demand: If the department calculates a higher tax liability than declared by the taxpayer.   -No Change: If the department's assessment matches the taxpayer's return, confirming acceptance without additional demand or refund. 3. Types of Adjustments: Adjustments may include corrections for arithmetical errors, incorrect claims, mismatches in Tax Deducted at Source (TDS) details, or discrepancies in income or deductions reported. 4. Time Limit: The intimation must be issued within one year from the end of the financial year in which the return is filed. So in my client case it was within the time limit for the F.Y. 2023-2024 and A.Y 2024-2025. 5. Receiving the Intimation: Taxpayers receive the intimation via email or through their registered account on the income tax e-filing portal. An SMS notification is also sent to the registered mobile number. So do not freak out, next time you or your client receives such email. You may connect with the professional immediately. 6. Password Protection: The intimation is a password-protected document. The password is typically the taxpayer's (PAN) in lowercase followed by their date of birth in the format DDMMYYYY. 7. Actions Required: Upon receiving the intimation, taxpayers should carefully review it to ensure all details are correct. If there are discrepancies or if additional tax is demanded, taxpayers may need to respond or rectify the errors by filing a revised return. Professional: My client is eligible for refund, so there is nothing to worry. #incometaxfiling #refund #AY24 #intimation #taxpayers #legallearningwithvarsha #learnandgrow

Income Tax Return Filing: Calls for extending deadline grow louder as glitches continue on I-T portal As only two weeks are left before the deadline to file income tax return (ITR) expires on July 31, taxpayers continue to face glitches on the I-T website. As a result of these glitches, a number of taxpayers are requesting the income tax department on social media for the extension of the deadline. One user, Doli Sanghvi wrote, (Income Tax) “Site is not working, also resolve issue of rebate in case of capital gain … only few days left and no proper improvement in site and no clarification on rebate." Another user wrote: “Today is a good day to extend due date. Portal glitches.” The income tax department replied to this user: “May we request you to share your details (along with PAN & your mobile no.) with us at orm@cpc.incometax.gov.in so that our team can get in touch with you.” “Section 139(1) of the Income Tax Act provides for the statutory timeline of July 31, 2024 for filing of returns of income for the assessment year 2024-25. However, while the deadline is near, a number of taxpayers are facing the following problems while filing income tax returns,” says CA Paras Gangwar, Founder of ThetaVega Capital. 1. Difficulty in accessing form 26AS/AIS/TIS and discrepancy between figures in the statements, 2. Limited response options in AIS/TIS, 3. Delayed update of responses in TIS, 4. Technical flitches on the Income-tax e-filing Portal, 5. Mismatch in pre-filled data, 6. Error messages during ITR filing, 7. Non-receipt of OTPs for authentication and difficulty in downloading filed ITR Receipts, among others. “The tax department should address the issue on a priority basis or extend the due date for 10-15 days to avoid harassment of taxpayers,” he adds. Rebate under section 87A Some taxpayers and chartered accountants are complaining that ITR utility is not allowing rebates under section 87A in the New Tax Regime. “Currently on the income tax portal, we are facing an issue where ITR utility is not allowing rebates u/s 87A in the New Tax Regime on STCG u/s 111A and special income. This started to happen after July 5. I am not sure if it is a glitch or interpretation issue. We have no clarification so far from the IT department,” says CA Pratibha Goyal, partner, P D Gupta and company. Deepak Aggarwal, another Delhi-based chartered accountant, said the portal is now working fine unlike the problems he faced in the first week. #ITR2024 #TaxFiling #IncomeTaxPortal #ITRDeadline #TaxGlitches #ExtendITRDeadline #ITPortalIssues #TaxpayerTroubles #ITRFilingIssues #TaxFiling2024

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