Report Wire

Tag: income tax department

  • 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. 

     

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    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.

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 05 Sep 2023, 05:45 PM IST

  • Income tax division points clarification on notices for Section 80P deductions

    After a number of revenue taxpayers acquired notices for wrongly claiming revenue tax deductions below Section 80 P, the Income Tax Department (ITD) clarified that they had been despatched to them by mistake. The ITD added that “an email communication regarding this will be sent to you shortly”.

    “Defective return errors coming in partnership corporations. Section 80P talked about isn’t relevant to corporations. A futile train of responding to such system-generated queries needs to be carried out.@IncomeTaxIndia,” this question was raised by taxpayer, chartered accountant Nirav Choksi on X (previously Twitter),

    In response, the Income Tax Department tweeted, “Intimation u/s 143(1) of Income-tax Act, 1961 with the error description: “In Schedule 80P, deduction u/s 80P(2)(e) can’t be claimed on revenue apart from rental revenue” has been inadvertently sent. An email communication regarding this will be sent to you shortly. The inconvenience caused is regretted.”

     

    Deduction in respect of revenue of co-operative societies Section 80P 

    One of the deductions out there below the Income Tax Act is deductions with respect to the revenue or beneficial properties of cooperative societies, which is supplied below Section 80P. The deduction below Section 80P is accessible to people, Hindu Undivided Families (HUFs), corporations, and corporations.

    What does the Income Tax Act say about Section 80 P

    (1) Where, within the case of an assessee being a co-operative society, the gross whole revenue consists of any revenue referred to in sub-section (2), there shall be deducted, in accordance with and topic to the provisions of this part, the sums laid out in sub-section (2), in computing the entire revenue of the assessee.

    (2) The sums referred to in sub-section (1) shall be the next, particularly :—

    (a) In the case of a cooperative society engaged in—

    (i) carrying on the enterprise of banking or offering credit score amenities to its members, or

    (ii) a cottage trade, or

    (iii) the advertising and marketing of the agricultural produce of its members, or

    (iv) the acquisition of agricultural implements, seeds, livestock, or different articles supposed for agriculture for the aim of supplying them to its members, or

    (v) the processing, with out assistance from energy, of the agricultural produce of its members, the entire of the quantity of income and beneficial properties of enterprise attributable to any a number of of such actions ;

    (b) In the case of a co-operative society, being a major society engaged in supplying milk raised by its members to a federal milk co-operative society, the entire of the quantity of income and beneficial properties of such enterprise;

    (c) In the case of a cooperative society engaged in actions apart from these laid out in clause (a) or clause(b) [either independently of, or in addition to, all or any of the activities so specified], a lot of its income and beneficial properties attributable to such actions as doesn’t exceed 1[fifteen thousand rupees];

    (d) in respect of any revenue by means of curiosity or dividends derived by the co-operative society from its investments with every other co-operative society, the entire of such revenue;

    (e) in respect of any revenue derived by the co-operative society from the letting of godowns or warehouses for storage, processing, or facilitating the advertising and marketing of commodities, the entire of such revenue;

    (f) In the case of a cooperative society, not being a housing society an city shoppers’ society, a society carrying on transport enterprise, or a society engaged within the efficiency of any manufacturing operations with assistance from energy, the place the gross whole revenue doesn’t exceed twenty thousand rupees, the quantity of any revenue by means of curiosity on securities chargeable below part 18 or any revenue from home property chargeable below part 22.

     

     

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 05 Sep 2023, 02:03 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

     

     

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 01 Sep 2023, 01:37 PM IST

  • ITR verification: Income tax division has this essential message for taxpayers

    ITR verification: If you don’t e-verify your earnings tax return (ITR), the submitting course of is handled as incomplete and your ITR turns into invalid. The earnings tax division has urged taxpayers to not delay and full the e-filing course of right this moment. The failure to conform might result in penalties, added tax division.

    “Dear Taxpayers, Complete the e-filing course of right this moment! Please discover beneath the modes of e-verification of return. Remember to confirm your ITR inside 30 days of submitting. Delayed verification might result in a levy of late charges in accordance with provisions of the Income-tax Act, 1961. Don’t delay, confirm your ITR right this moment!,” tweeted the earnings tax division.

     

    Why is e-verification crucial

    E-verification of ITRs is obligatory for it to be handled as legitimate. Effective August 2023, the earnings tax division has made it obligatory for tax filers to e-verify their returns inside 30 days of submitting returns.

    Steps to e-verify your ITR

    -Go to the earnings tax division’s e-filing portal. Click on ‘e-Verify Return’.

    -You have to enter your PAN, evaluation 12 months for which the verification is being executed (2023-24), and acknowledgment quantity.

    -Alternatively, you may also log in together with your PAN and password, then go to “My Account” after which click on “e-Verify Return”.

    -The new web page will then show the file for which verification is pending.

    The technique of verifying by Aadhar OTP is pretty easy. One can use the OTP delivered to the cellular quantity registered and mapped with Aadhar to verify and e-verify the returns.

    Another easy strategy to e-verify is by logging into the web banking portal and navigating by the e-verify ITR phase.

    The earnings tax division is planning to scale back the common processing time for getting tax refunds. As per a report in Business Standard, the tax division is mulling over the discount of days to 10 from the present 16 days. The report says that the brand new timeline is anticipated to be applied in the course of the present fiscal 12 months.

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 26 Aug 2023, 10:23 AM IST

  • How is sale of agricultural land taxed?

    We are a household of 4, together with my mother and father and my elder brother. My father is planning to promote fives acres of ancestral agricultural land in our native place, a village that’s round 2-5km from the closest municipality and share the proceeds equally amongst all 4 of us. What are the tax implications of above sale? In what quantity ought to the proceeds be divided? My father intends to switch the proceeds to every of our financial institution accounts. Are any paperwork mandatory for such financial institution transfers so that each one relations have correct proof to elucidate the supply of this revenue if that is raised by the revenue tax division?

    —Name withheld on request

    Agricultural land in India doesn’t qualify as a capital asset (Section 2(14)), until it’s located as follows:

    a) In any space inside the jurisdiction of a municipality/ cantonment board, with a inhabitants* of 10,000 or extra; or

    b) In any space (distance measured aerially):

    • Within 2km of the native limits of any municipality/ cantonment board with a inhabitants of greater than 10,000 however inside 100,000;

    • Within 6km of the native limits of any municipality/ cantonment board with a inhabitants of greater than 100,000 however inside 10,00,000;

    • Within 8km of the native limits of any municipality/ cantonment board with a inhabitants of greater than 10,00,000.

    The time period inhabitants for this objective means the inhabitants in response to the final previous census of which the related figures have been revealed earlier than the primary day of the earlier yr.

    In case the land referred in your question, qualifies to be an agricultural land in India which isn’t a capital asset as outlined above, any achieve/ loss from switch of such land, shall not be taxable underneath the revenue tax Act.

    However, in case the land qualifies to be a capital asset, your complete achieve/ loss from switch of such land shall be topic to capital positive aspects tax in your father’s arms as he’s the proprietor of the land and all associated provisions shall apply. In such a case, because the land is held for greater than 24 months, the identical shall be thought-about to be sale of long-term capital asset and any achieve shall classify as long-term capital achieve (LTCG).

    The subsequent switch of the proceeds obtained by your father from sale on the land to the relations (being partner and two kids) shall not be taxable within the arms of the recipients, as the identical would qualify to be receipts from a ‘relative’, as outlined underneath Section 56 of the Act (regardless of the proportion of the share).

    Documents corresponding to registered buy deed, registered sale deed, present deed, copy of financial institution statements, and many others. could also be maintained for income-tax functions. From a authorized perspective, it might be advisable to judge the requirement individually with an skilled authorized practitioner.

    Parizad Sirwalla is accomplice and head, international mobility providers, tax, KPMG in India.

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 13 Aug 2023, 10:48 PM IST

  • Missed to file ITR: You might get jailed for as much as seven years. Check particulars

    ITR submitting 2023: If you might have didn’t file your earnings tax return (ITR) for the Financial yr 2022-23 by July 31, you possibly can nonetheless file a belated return until 31 December, however that comes with a value. The final date to file ITR handed on July 31, and as anticipated the federal government didn’t lengthen the deadline for a similar. While knowledge confirmed that the overall variety of ITR filers has scaled a peak with over 6.50 crore ITR fillings until 6 pm Monday. Of the overall, about 36.91 lakh ITRs have been filed at the moment until 6 pm, Income Tax Department mentioned in a tweet on July 31.

    From jail to penalty: Repercussions of lacking ITR submitting deadline

    ITR submitting after the due date will entice penalties relying upon the earnings tax slab through which the person taxpayers fall. They may even land in jail for such earnings tax return violations and the jail sentence may be to the tune of a minimal of three years and a most of seven years.

    “The penalties of lacking the deadline may lead to penalties. Taxpayers who fail to file their ITR by the deadline might incur a penalty of ₹5,000 below Section 234F. However, for people with an earnings of lower than ₹5 lakh, the penalty can be a diminished quantity of ₹1,000,” said Abhishek Soni, CEO and Co-founder Tax2win.

    “Failing to file ITR by given final date, the earnings tax division might levy a penalty of fifty per cent to 200 per cent on taxpayer’s precise earnings tax outgo, along with the tax and curiosity legal responsibility until the date a taxpayer information its ITR in response to the earnings tax discover from the division,” Mumbai-based tax and investment expert Balwant Jain said.

    Also Read:  Why salaried individuals should not indulge in F&O trading

    He added that the Indian government has the power to initiate prosecution against the salaried individuals who have missed filing ITR by 31st December 2023.

    “The current earnings tax guidelines prescribe a minimal sentence of three years of imprisonment and a most sentence of seven years of imprisonment. It will not be that the division can launch prosecution in opposition to you in every occasion of failure to file the ITR. The earnings division can launch prosecution solely in case the quantity of tax sought to be averted exceeds ₹10,000,” mentioned Balwant Jain.

    Not submitting ITR on time might lead to a protracted watch for the earnings tax refund.

     

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 01 Aug 2023, 12:37 PM IST

  • Income tax division might impose penalty of as much as 200% of your precise tax outgo

    ITR submitting: As the deadline for submitting Income Tax Returns (ITRs) approaches on July 31, 2023, the Income Tax Department is intensifying its efforts to sort out taxpayers who could also be utilizing pretend lease receipts to evade taxes. The revenue tax division has been cracking down on salaried people for submitting false or incorrect revenue tax returns (ITRs). From submitting pretend lease receipts to false donations, the tax division is proactively flagging such returns.

    ITR Filing: Tax exemptions for lease

    Salaried people have been allowed to say tax exemptions for lease as much as ₹1 lakh with out disclosing the PAN of their landlords (as per Section 10(13A)). 

    “Unfortunately, some people have been making the most of this provision, resulting in a surge in instances the place taxpayers are receiving notices from the tax division, asking for proof to validate their tax exemptions,” said Abhishek Soni, CEO and Co-founder Tax2win. 

    To scrutinize the genuineness of such claims, the Income Tax Department is adopting a comprehensive approach. “They are conducting a 360-degree profiling of individuals by analyzing data from ITRs and cross-referencing it with information obtained from external sources, including verifications from taxpayers themselves,” stated Soni

    If discrepancies are detected, the tax division might concern notices to those taxpayers. If it’s discovered that revenue has been under-reported, the division has the authority to impose a penalty of as much as 200% of the tax relevant on the misreported revenue, he added.

    1)Let’s guarantee trustworthy tax compliance to keep away from hassle.

    2)Use a legitimate rental settlement.

    3)Prefer on-line or cheque lease funds.

    4)Mention the owner’s PAN for funds exceeding ₹1 lakh.

    5)Keep data of utility invoice funds.

    6)Obtain a PAN declaration from the owner if not accessible.

    The Income Tax Department points an revenue tax discover for a lot of causes underneath a lot of provisions. Normally, a taxpayer receives an revenue tax discover on account of lacking or submitting their revenue tax return late, submitting it incorrectly, claiming an incorrect tax refund, and plenty of different causes. The revenue tax discover is issued by the tax division underneath sections 143(1), 142(1), 139(1), 143(2), u/s 156, Section 245, and Section 148.

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

     

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 27 Jul 2023, 01:13 PM IST

    Topics

  • ITR submitting deadline: Penalties and different outcomes when you miss due date

    Income tax return (ITR) submitting for FY 2022-23: The due date for earnings tax return (ITR) submitting is thirty first July 2023, which implies taxpayers have only a week in hand to file their ITR. In order to keep away from late charges or penalties, the earnings tax division has been urging taxpayers to file their returns as quickly as potential and never wait till the final minute.   

    Will Govt prolong July 31 ITR submitting deadline?

    “As the deadline for submitting ITR for FY 2022-23 (AY 2023-24) nears on thirty first July 2023, over 4 crore taxpayers have already filed their returns. Despite some taxpayers hoping for an extension, it’s unlikely that the federal government will grant any additional delays past the set date,” mentioned Abhishek Soni CEO and Co-founder Tax2win.

    Here’s what occurs when you miss July 31 deadline

    Filing ITR on time is very advisable to keep away from last-minute errors. “The penalties of lacking the deadline may end in penalties. Taxpayers who fail to file their ITR by the deadline might incur a penalty of ₹5,000 underneath Section 234F. However, for people with an earnings of lower than ₹5 lakh, the penalty might be a diminished quantity of ₹1,000,” said Abhishek Soni

    Tax and investment expert Balwant Jain said, “If an incomes particular person misses submitting ITR inside the given due date, then she or he would have the option to take action by paying the late payment. The late payment could be ₹5,000 if the annual taxable earnings is ₹5 lakh or extra whereas the late payment could be ₹1,000 if the taxable earnings is beneath ₹5 lakh.” 

    Missed to file ITR? You may land in jail too

    Mumbai-based tax expert Balwant Jain added that the Indian government has the power to initiate prosecution against the salaried individuals who have missed filing ITR by 31st December 2023 

    “Current earnings tax guidelines prescribe a minimal sentence of 6 months of imprisonment and a most sentence of seven years of imprisonment. It shouldn’t be that the division can launch prosecution towards you in each occasion of failure to file the ITR. The earnings division can launch prosecution solely in case the quantity of tax sought to be prevented exceeds ₹10,000,” Balwant Jain mentioned.

    Over 4 crore ITRs filed for FY23 to date

    More than 4 crore earnings tax returns (ITRs) for the 2022-23 monetary 12 months have been filed to date and about 7 per cent of those are new or first-time filers, CBDT chairperson Nitin Gupta mentioned on Monday. He mentioned that greater than half of those ITRs have been processed resulting in 80 lakh refunds until now. The chairperson was talking at an occasion held right here to mark the 164th Income Tax Day on 24 July

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 25 Jul 2023, 12:30 PM IST

  • ITR submitting: Over 3 crore revenue tax returns filed to this point, says tax division

    ITR submitting 2023: Over three crore revenue tax returns (ITRs) have been filed to this point this 12 months for the evaluation 12 months 2023-24.

    In a tweet Income Tax division mentioned over three crore ITRs for AY 2023-24 have already been filed until July 18, this 12 months, as in comparison with 3 crore ITRs filed until July 25, final 12 months.

    “Grateful to our taxpayers & tax professionals for having helped us attain the milestone of three crore Income Tax Returns (ITRs), 7 days early this 12 months, in comparison with the previous 12 months! Over 3 crore ITRs for AY 2023-24 have already been filed until 18th of July this 12 months as in comparison with 3 crore ITRs filed until twenty fifth of July final 12 months,” the revenue tax division tweeted.

     

    Out of the three.06 crore ITRs filed until 18th July, 2023, 2.81 crore ITRs have been e-verified i.e. greater than 91% ITRs filed have been e-verified! Out of the e-verified ITRs, greater than 1.50 crore ITRs have already been processed, learn the tweet.

    The tax division additionally urged these, who have not filed ITR for AY 2023-24, to file their ITR on the earliest to keep away from final minute rush.

    File ITR by July 31: ‘No extension’ of deadline, says Govt

    The authorities has said that it’s going to not lengthen the deadline for submitting Income Tax Returns (ITR) past July 31 and has urged taxpayers to file their returns on the earliest.

    Revenue Secretary Sanjay Malhotra has requested revenue taxpayers to file their returns on the earliest. “We expect that the filing would be higher than the last year…we are hopeful that it should be more than the last year,” he mentioned in an interview with PTI.

    “We would like to thank income tax return filers as ITR filing has been at a much faster pace than last year and we would advise them not to wait until the last moment and also not to hope for any extensions.

    “So, I might advise them to file their tax return on the earliest as a result of the deadline of July 31 is approaching quick,” he said.

    Income Tax department clarifies inoperative PAN is not inactive PAN

    The Income Tax Department on Tuesday said Non-Resident Indians (NRIs) and foreign citizens whose permanent account numbers have become inoperative due to non-linking with Aadhaar should submit proof of their residential status to the jurisdictional assessing officer for operationalising the PAN.

    “The NRIs whose PANs are inoperative are requested to intimate their residential standing to their respective JAO together with supporting paperwork with a request to replace their residential standing within the PAN database,” it tweeted.