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Tag: CBDT

  • Income Tax Clearance Certificate Mandatory For All Indians? CBDT Clarifies New Rule | Personal Finance News

    The income tax return filing season has now entered the penalty phase where those who failed to file their returns by July 31 are now needed to pay fine to fill their returns. The Income Tax Department said earlier this month that timely compliance by taxpayers and tax professionals has led to a significant increase in the filing of Income-tax Returns (ITRs), setting a new record for ITRs filed by July 31, 2024. The total number of ITRs filed for the Assessment Year (AY) 2024-25 exceeded 7.28 crore, marking a 7.5% increase compared to the 6.77 crore ITRs filed by the same date for AY 2023-24.

    Claims Being Made Online/Offline

    Now, with crores of taxpayers filing their returns, the Income Tax department has made several changes to its website to make the user experience a smooth affair. Amid this, it was claimed that all Indians including those traveling abroad need an Income Tax Clearance Certificate. It was claimed that those opting for foreign travel must possess the Income Tax Clearance Certificate. The tax department has earlier made a statement in this regard but today, the Central Board of Direct Taxes (CBDT) came out with another statement to make the rules clear to everyone and clarify the misinformation being spread online and offline.

    CBDT Fresh Statement

    “There appears to be misinformation about the said amendment emanating from incorrect interpretation of the amendment. It is being erroneously reported that all Indian citizens must obtain income-tax clearance certificate (ITCC) before leaving the country. This position is factually incorrect,” said the cbdt.

    CBDT issues clarification in respect of Income-tax clearance certificate (ITCC).

    It is being erroneously reported that all Indian citizens must obtain ITCC before leaving the country. This position is factually incorrect.

    Vide Finance (No.2) Act, 2024, Black Money… pic.twitter.com/tadFVQr99F — Income Tax India (@IncomeTaxIndia) August 20, 2024

    What Rules Say

    Section 230 (1A) of the Income-tax Act, 1961(the ‘Act’) relates to obtaining of a tax clearance certificate, in certain circumstances, by persons domiciled in India. The said provision, as it stands, came on the statute through the Finance Act, 2003 wef 1.6.2003. The Finance (No.2) Act, 2024 has made only an amendment in Section 230(1A) of the Act, vide which, reference of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the ‘ ‘Black Money Act’) has been inserted in the said Section. This insertion has been made to also cover the liabilities under the Black Money Act in the same manner as the liabilities under the Income-tax Act,1961 and other Acts dealing with direct taxes for the purpose of Section 230(1A) of the Income- Tax Act,1961.

    As per section 230 of the Act, every person is not required to obtain a tax clearance certificate. Only certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate, are required to obtain the said certificate. This position has been in the statute since 2003 and remains unchanged even with the amendments vide Finance (No. 2) Act, 2024.

    “The CBDT, vide its Instruction No. 1/2004, dated 05.02.2004, has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances: (a) where the person is involved in serious financial irregularities and his presence is necessary in the investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or, (b) where the person has direct tax arrears exceeding Rs 10 lakh outstanding against him which have not been stayed by any authority,” said the CBDT.

    How To Get Tax Clearance Certificate?

    According to the CBDT, a person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after getting approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of income tax. Those persons mandated to require the certificate can obtain the same from the Income Tax Department by making a written request online or offline.

  • Average tax return processing time minimize to 10 days: CBDT

    New Delhi: The common time taken to course of earnings tax returns after its verification by the tax payer has been lowered to 10 days, Central Board of Direct Taxes (CBDT) stated in an announcement on Tuesday.

    CBDT stated that the tax division’s efforts to offer seamless and expeditious taxpayer companies are being repeatedly strengthened. “In line with the same, average processing time of income tax returns after verification has been reduced to 10 days for the returns filed for assessment year (AY) 2023-24 compared to 82 days for AY 2019-20 and 16 days for AY 2022-23,” CBDT stated.

    The Income Tax division is dedicated to processing tax returns (ITRs) in a speedy and environment friendly method, the assertion stated.

    As on 5 September, 6.98 crore earnings tax returns for AY 2023-24 have been filed, out of which 6.84 crore have been verified. More than 6 crore tax returns of AY 2023-24 have been processed out of the verified tax returns as on 5 September, leading to processing of over 88% of the verified tax returns. More than 2.45 crore refunds for the present evaluation 12 months have already been issued, the assertion stated.

    CBDT additionally stated that the division is just not in a position to course of sure  kinds of tax returns for need of sure info or motion from taxpayers. CBDT stated that about 14 lakh ITRs for AY 2023-24 are but to be verified by the taxpayers as on Monday.

    “Failure to verify the returns causes delays in processing as the return can only be taken up for processing once the verification has been completed by the taxpayer. Taxpayers are urged to complete the verification process immediately,” CBDT stated.

    There are about 12 lakh verified ITRs during which additional info has been sought by the division. Taxpayers are requested to reply to such communication expeditiously, CBDT stated.

    There are a number of instances during which the ITRs have been processed and refunds have additionally been decided however the Department is unable to situation them as taxpayers haven’t but validated their checking account during which the refund is to be credited. Taxpayers are requested to validate their financial institution accounts via the e-filing portal.

    “The department remains committed to speedy processing and expeditious issue of refunds and solicits the cooperation of the taxpayers,” CBDT stated. 

     

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    Updated: 06 Sep 2023, 12:37 AM IST

  • Income Tax Department unable to course of refund for THESE two classes

    The Income Tax Department on Tuesday emphasised its dedication to processing Income Tax Returns (ITR) speedily and effectively. In the evaluation yr 2023-24, 6.98 crore ITRs have been filed out of which 6.84 crore ITRs have been verified and greater than 6 crore ITRs have been processed as per the Income Tax Department.

    The division knowledgeable that greater than 2.45 crore refunds for AY 2023-24 have already been issued.

    “The Department’s efforts to supply seamless and expeditious taxpayer companies are being constantly strengthened. In line with the identical, the common processing time of ITRs (after verification) has been lowered to 10 days for Returns filed for AY 2023-24 in comparison with 82 days for AY 2019-20 and 16 days for AY 2022-23,” Central Board of Direct Taxes (CBDT) said in a release.

    Unable to process two categories of ITRs 

    The Income Tax Department is not able to process two kinds of ITRs- one where the verification is due and the second where the department has sought additional information from the taxpayer and is waiting for the response.

    The release mentioned 14 lakh ITRs for AY 2023-24 which are filed but not verified by the taxpayers and 12 lakh ITRs are such that the Income Tax Department is waiting for the response to the request of additional information it sought.

    The Income Tax Department also mentioned some cases where refunds are determined but the department is unable to issue them as taxpayers have not validated their bank details.

    “There are several cases in which the ITRs have been processed and refunds have also been determined but the Department is unable to issue them as taxpayers have not yet validated their bank account in which the refund is to be credited. Taxpayers are requested to validate their bank accounts through the e-filing portal,” the press launch added.

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    Updated: 05 Sep 2023, 05:45 PM IST

  • New CBDT rule on I-T raids opens a pandora’s field

    Hindi film Raid was loosely primarily based on the revenue tax (I-T) search operations on the home of a Kanpur-based businessman. In the film, the protagonist and his workforce have been capable of finding undisclosed money and jewelry hidden within the civil construction of the premises. In actuality, such a discovery is incriminating sufficient to justify the additions within the tax evaluation pursuant to the search motion. But what occurs if no incriminating materials is discovered in the course of the search? Is any addition within the evaluation then justified? The reply is clearly within the detrimental.

    A ‘search’ motion is taken into account an excessive measure of tax administration and its legislative mandate is given in part 132 of the Act. If the competent I-T authority, in consequence of any data in its possession, believes that any individual is having any undisclosed revenue within the type of cash, bullion, jewelry, or different related valuables, then it may well concern a search warrant in opposition to such individual, and enter and search such individual’s enterprise and residential premises. During such searches, I-T officers are empowered to interrupt open the lock of any door, locker, protected, vault, almirah, or different civil construction within the premises and impound or seize the property discovered therein.

    Until fiscal 2021-22, the assessments pursuant to such searches have been ruled by separate provisions of sections 153A and 153C of the Act and may very well be reopened for previous six years. From fiscal 2022-23 onwards, search associated assessments have been subsumed within the new reassessment regime beneath sections 147-151 of the Act. The appellate authorities have recognised and held that, after subjecting the taxpayer to the acute invasion of privateness and trauma and hardship of a search motion, I-T authorities are anticipated to find some incriminating materials to justify the reopening of accomplished assessments of previous years and making of consequential additions in respect of alleged undisclosed revenue. This established authorized place has been given the ultimate stamp of approval by the Supreme Court in a current judgement, within the case of PCIT vs Abhisar Buildwell Pvt. Ltd. However, the apex courtroom additionally noticed that such in any other case quashed assessments could also be reopened by income authorities, beneath reassessment sections 147/148, topic to the fulfilment of the required situations therein.

    One such prescribed situation is that the income authorities wouldn’t have the facility to reopen outdated search instances carried out earlier than 1 April 2021 at current. However, on 23 August, CBDT got here out with an instruction that conceived an out-of- the-box fictional idea of ‘time-travel’ within the Income Tax Act. It visualizes a state of affairs whereby assessing authorities can reopen accomplished assessments made pursuant to searches carried out earlier than 1 April 2021, which in any other case had been quashed by the apex courtroom.

    The CBDT instruction depends upon part 150 of the Act, which supplies leeway to the IT authorities to ignore the time barring limitation interval, for reopening of already accomplished assessments, as a way to give impact to the discovering of any courtroom in any attraction proceedings. The CBDT instruction directs the assessing authorities that, as a way to give impact to the discovering of the apex courtroom in Abhisar Buildwell judgement that such in any other case quashed assessments could also be reopened, beneath sections 147-148, and the above said limitation situations may be bypassed and undermined.

    The legislative intent of the highest dispensation is to offer a extra steady, sure and conclusive taxation regime to the taxpayers to make sure that the tax assessments attain finality and should not left open inconclusive, infinitely. However, opposite to this legislative intent, a tsunami of litigations is foreseeable and anticipated after this adventurous CBDT instruction. It may very well be challenged in acceptable appellate boards because the instructions given in it should not in accordance with the legislative sanctity of the Finance Act 2021.

    Mayank Mohanka is the founding father of TaxAaram India and a accomplice at S M Mohanka & Associates.

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    Updated: 03 Sep 2023, 10:55 PM IST

  • New earnings tax guidelines for these salaried taxpayers from as we speak. Details right here

    New earnings tax guidelines for these salaried taxpayers: The earnings tax division has introduced main aid to taxpayers, availing company-provided rent-free houses. It has lowered the tax for workers staying in such lodging. The new rule comes into impact from as we speak, September 1, 2023.

    Income tax guidelines for company-provided rent-free houses

    1)10 % of wage in cities having a inhabitants exceeding 40 lakh as per the 2011 census.

    2)7.5 % of wage in cities having a inhabitants exceeding 15 lakh however not exceeding 40 lakh as per the 2011 census.

     

    View Full Image

    The rule for dedication of the worth of perquisite in respect of residential lodging offered by employer. (PIB)

    What is perquisite?

    The worth of rent-free offered to an worker by the employer is taxable as perquisite.

    How new earnings tax guidelines will influence the Employee?

    The taxable worth of rent-free lodging will likely be diminished which suggests workers pays much less tax leading to a rise of their take-home wage.

    “Employees who keep in lodging, owned/rented by the employers, rent-free, may see a drop within the taxable perquisite worth thereby decreasing the tax burden. Which would allow them to get a bit more cash of their hand,” said Archit Gupta, Founder, and CEO, of Clear.

    These taxpayers will benefit from this rule change

    As per CBDT’s notification, the changes are expected to particularly benefit high-earning individuals who receive employer-provided housing perks.

    Will you benefit?

    Tax and investment expert Balwant Jain said that the employer has to see the calculation of “perquisite” with regard to the worth of rent-free. On who will likely be impacted by this modification, he added that ‘rent-free accommodation is provided by only a handful of employers.’ He additional added that its direct impact will likely be seen on workers’ salaries. “Due to much less tax, the wage acquired in hand will likely be extra,” mentioned Jain.

    The Central Board of Direct Taxes (CBDT) has notified amendments to the Income Tax Rules for valuing perquisites of rent-free or concessional lodging by employers to workers.

    The Finance Act, of 2023, had introduced in an modification for the needs of calculation of ‘perquisite’ with regard to the worth of rent-free or concessional lodging offered to an worker, by his employer.

    Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise traders to examine with licensed consultants earlier than taking any funding choices.

    -With company inputs

     

     

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    Updated: 01 Sep 2023, 01:37 PM IST

  • How the revamped earnings tax web site will profit taxpayers — defined

    In order to boost taxpayers expertise and preserve tempo with new know-how, the Income Tax Department has revamped its web site final week. The newly revamped web site, www.incometaxindia.gov.in, was launched by Nitin Gupta, Chairman of the Central Board of Direct Taxes (CBDT).

    “The Income Tax Department has launched a redesigned web site to boost the taxpayer expertise and embrace new know-how. The up to date website gives a user-friendly interface, added options, and recent modules for an environment friendly and informative platform. It additionally contains instruments like reverse countdowns, tooltips, and direct hyperlinks to assist taxpayers in assembly obligations promptly. Additionally, a due date function retains customers knowledgeable about upcoming Income Tax deadlines. Overall, the revamped web site goals to enhance consumer expertise, comfort, and know-how integration, offering taxpayers with an accessible platform for managing their earnings tax issues,” stated Abhishek Soni CEO and Co-founder Tax2win.

    “The revamped National web site https://incometaxindia.gov.in serves as a complete repository of tax and different associated data,” the earnings tax division has knowledgeable on X (former Twitter).

     

    Revamped earnings tax web site: Key options

    1) The revamped earnings tax web site gives entry to Direct Tax legal guidelines, a number of different Allied Acts, Rules, Income Tax Circulars, and Notifications, all cross-referenced and hyperlinked.

    2) The revamped tax portal permits customers to match completely different Acts, Sections, Rules, and Tax treaties.

    3) It is aesthetically redesigned with a mobile-responsive structure.

    4) A ‘Mega Menu’ for content material, with new options, and functionalities.

    5) A guided digital tour and new button indicators.

    6) A ‘Taxpayer Services Module’ that includes varied tax instruments to help taxpayers in submitting their earnings tax returns.

    7) Dynamic due date alerts performance which gives reverse countdowns, tooltips, and hyperlinks to related portals to assist taxpayers comply simply.

    “The revamped web site is one other initiative in offering enhanced taxpayer companies and can proceed to coach taxpayers and facilitate tax compliance,” an official launch stated on August 26.

     

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    Updated: 29 Aug 2023, 02:22 PM IST

  • CBDT relaxes norms for rent-free properties supplied by employers, verify particulars

    The Central Board of Direct Taxes (CBDT) on 19 August issued a notification to worth rent-free lodging supplied by employers, reported information company PTI. 

    According to the brand new notification, the workers having rent-free lodging supplied by their employers and drawing substantial salaries can now save extra and get a better take-home wage because the revenue tax division revised norms.

    These new norms will come into impact from 1 September.

    According to the notification, apart from the central or state authorities staff the place unfurnished lodging is supplied to staff and such lodging is owned by the employer then the valuation shall be: (i) 10 % of wage (lowered from 15 %) in cities having a inhabitants exceeding 40 lakhs as per 2011 census (earlier, 25 lakhs as per 2001 census), (ii) 7.5 % of wage (lowered from 10 %) in cities having a inhabitants exceeding 15 lakhs however not exceeding 40 lakhs as per 2011 census (earlier, 10 lakhs however not exceeding 25 lakhs as per 2001 census).

    ALSO READ: CBDT points tips on withdrawing tax break on fats insurance coverage insurance policies

    Experts communicate: 

    Commenting on the brand new IT norms, AKM Global Tax Partner Amit Maheshwari stated contemplating staff who’re drawing substantial salaries and receiving lodging from the employer, they may be capable of save extra since their taxable base goes to be lowered now with the revised charges. “The perquisite value shall be lower resulting in relief to them in the form of take-home pay,” Maheshwari stated.

    Speaking on comparable traces, AMRG & Associates CEO Gaurav Mohan stated these provisions incorporate the insights 2011 census knowledge and intention to rationalize the perquisite worth calculation.

    “Employees enjoying rent-free accommodation would see the rationalisation of perquisite value leading to a reduction in taxable salary, increasing the net take-home pay. It is worth noting that the reduction in the perquisite value of rent-free accommodations will yield dual implications: on the one hand, it will generate tangible savings for employees, while on the other hand, it will result in a corresponding decrease in government revenue,” Mohan stated.

    Apart from this, Mohan stated that lower-income staff with extra modest lodging won’t expertise vital tax aid. However, he talked about the adjustments would result in disproportionate advantages for higher-income staff who obtain costly lodging.

    Adding extra, Mohan stated the shift would possibly immediate company employers to strategically revisit and doubtlessly reshape their present compensation frameworks, particularly if they’ll capitalize on tax benefits for his or her workforce.

    With company inputs.

     

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    Updated: 19 Aug 2023, 02:58 PM IST

  • Over 6 crore ITRs filed until 6.30 pm right now: Income tax division

    Income tax division on Sunday saidmore than 6 croreincome tax returns (ITRs) have been filed for fiscal 12 months 2022-23 thus far, of which about 27 lakh ITRs had been filed onJuly 30.

    “More than 6 crore ITRs have been filed thus far (thirtieth July), out of which about 26.76 lakh ITRs have been filed right now until 6.30 pm!” the I-T division tweeted.

    The variety of ITRs filed has exceeded the variety of returns filed final 12 months until July 31.

    The division additionally stated greater than 1.30 crore profitable logins had been there on the e-filing portal until 6.30 pm, Sunday.

    “To help taxpayers for ITR submitting, tax fee and different associated providers, our helpdesk is performing on 24×7 foundation, and we’re offering assist by calls, dwell chats, WebEx periods & social media,” the division tweeted.

    Till 1 pm on Sunday,as many as 5.83 crore ITRs had been filed for fiscal 12 months 2022-23,the division stated earlier.Over 46 lakh profitable logins on the e-filing portal had been seen until 1 pm on Sunday.

    The final date for submitting revenue tax returns for the earlier 12 months by salaried class and those that wouldn’t have to get their accounts audited is July 31.

     

     

    On July 24, CBDT chairperson Nitin Gupta stated over 4 crore ITRs for the 2022-23 monetary 12 months had been filed and about 7% of those are new or first-time filers.

    More than half of those ITRs have been processed resulting in 80 lakh refunds until then, he had stated.

    The “scarcity of manpower at each stage was impeding our efforts to provide even higher outcomes,” Gupta had said, and urged Union finance minister Nirmala Sitharaman for a “quick approval” of the division’s cadre restructuring proposal.

    On July 27, a parliamentary panel requested the finance ministry to expeditiously come out with a typical ITR kind to ease I-T return submitting for people and non-business taxpayers.

    The ministry had in November final 12 months proposed to come back out with a user-friendly widespread revenue tax return kind for all taxpayers, besides trusts and non-profit organisations.

    The Standing Committee on Finance, chaired by BJP MP Jayant Sinha, had earlier flagged difficulties being confronted by folks in submitting revenue tax returns and urged the tax division to make the method less complicated and extra taxpayer pleasant.

     

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    Updated: 30 Jul 2023, 09:39 PM IST

    Topics

  • BBC admits to underreporting Rs 40 crore earnings in India

    By Online Desk

    The British Broadcasting Company (BBC) has acknowledged that it may need paid lower taxes than its obligation, as reported by Hindustan Times. 

    The BBC has despatched an e-mail to the Central Board of Direct Taxes confessing that it underreported Rs 40 crore of earnings in its tax returns, HT reported. 

    The broadcaster is now required to file revised returns and settle glorious dues, penalties, and curiosity.

    Tax surveys have been carried out at BBC workplaces in Delhi and Mumbai by the Income Tax Department in February. In its assertion following the movement, the Central Board of Direct Taxes (CBDT) said it had found discrepancies and that the earnings and revenue disclosed by the organisation’s objects have been “not commensurate with the scale of operations in India”.

    In the wake of the movement, the British authorities strongly defended the BBC and its editorial freedom in Parliament saying: “We stand up for the BBC. We fund the BBC. We think the BBC World Service is vital.”

    The BBC had in January launched the documentary film titled ‘India: The Modi Question,” which choices the Gujarat riots of 2002. The film prompted controversy for alluding to the administration of Modi as chief minister by way of the riots whereas disregarding the clear chit given by the Supreme Court.

    The British Broadcasting Company (BBC) has acknowledged that it may need paid lower taxes than its obligation, as reported by Hindustan Times. 

    The BBC has despatched an e-mail to the Central Board of Direct Taxes confessing that it underreported Rs 40 crore of earnings in its tax returns, HT reported. 

    The broadcaster is now required to file revised returns and settle glorious dues, penalties, and curiosity.googletag.cmd.push(carry out() googletag.present(‘div-gpt-ad-8052921-2’); );

    Tax surveys have been carried out at BBC workplaces in Delhi and Mumbai by the Income Tax Department in February. In its assertion following the movement, the Central Board of Direct Taxes (CBDT) said it had found discrepancies and that the earnings and revenue disclosed by the organisation’s objects have been “not commensurate with the scale of operations in India”.

    In the wake of the movement, the British authorities strongly defended the BBC and its editorial freedom in Parliament saying: “We stand up for the BBC. We fund the BBC. We think the BBC World Service is vital.”

    The BBC had in January launched the documentary film titled ‘India: The Modi Question,” which choices the Gujarat riots of 2002. The film prompted controversy for alluding to the administration of Modi as chief minister by way of the riots whereas disregarding the clear chit given by the Supreme Court.

  • Confused about which earnings tax regime to resolve on? Here are key points to take a look at

    Only just some days are left to intimate your employers regarding the earnings tax regime choice. However, numerous salaried workers nonetheless look like confused about choosing between the model new and former tax regimes. “It is essential for every employee to inform their employer of their chosen tax regime for this Financial 12 months, i.e., 2023-2024, beforehand. Depending on the regime alternative, the correct amount of tax will probably be deducted, and important adjustments will probably be made to the wage. It is essential to make this decision with utmost care to steer clear of excessive deductions,” talked about Abhishek Soni, Co-founder & CEO of Tax2win, a Fisdom agency.

    Before choosing a tax development, there are some issues to ponder:Level of earnings

    The specific individual should affirm his common earnings. He must assess the amount of tax monetary financial savings investments he has made as successfully. 

    HRA exemption 

    Before choosing a earnings tax regime, one should additionally take into consideration the availability of HRA advantages and carryover losses.

    According to Archit Gupta, Founder, and CEO, of Clear, these claiming HRA and totally different tax benefits would doable revenue from being throughout the earlier regime.

    Vinit Khandare, CEO and Founder, MyFundBazaar talked about that each tax system, along with the model new one created beneath Section 115BAC of the IT Act, has advantages and disadvantages.

    “The taxpayer’s decision to select one amongst these tax regimes would often be influenced by numerous variables, along with funding aims and targets, earnings ranges, related tax fees, exemptions and deductions that are on the market, and so forth. So, sooner than choosing between the two tax regimes, a radical comparability evaluation and analysis needs to be executed,” talked about Vinit Khandare.

    Income tax calculator for choosing tax regime

    The regime must be chosen after considering diverse components much like earnings stage, related tax fees, and tax-saving investments made. An in depth comparability and analysis of every regimes are moreover important. An earnings tax calculator typically is a helpful gizmo to make an educated decision and resolve most likely essentially the most applicable tax regime relying upon your earnings and deductions, talked about Abhishek Soni.

    Who will revenue from the model new tax regime?

    According to Clear Founder Archit Gupta, these at earnings upto ₹7.5L (attributable to rebate, salaried with complete earnings upto ₹7.5L isn’t going to pay any tax) or very high-income bracket of ₹5crore plus (attributable to low cost in surcharge from 37% to 25%), will revenue from being throughout the new tax regime.

    Since the model new regime would not allow for further depreciation, it’s good to weigh the professionals and cons of every the tax regime sooner than deciding to go ahead with the model new tax regime or choosing the earlier one.

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