Income tax/GST updates

Extension

Link PAN WITH AADHAR

💐Highlights of Union Budget 2023-24

Personal Income Tax

1. Sec 87A Rebate - Currently, income up to Rs. 5 Lakh do not pay any income tax. It is proposed to increase the Income limit to Rs.7 Lakh which will be applicable to those who opted under the New Regime only.
2. 6 income slabs in the new regime are now to be changed to 5 slabs -
Basic exemption upto 3 Lacs,
3-6 Lakh 5%,
6-9 Lakh - 10%,
9-12 Lakh 15%
12-15 Lakh 20% and
> 15Lac is 30%
3. Salaried and pension - standard deduction in a new regime with over Rs.15.5 lakhs is Rs.52,500
4. Reduction of highest surcharge from 37% to 25% on new income tax regime
5. Limit on tax exemption for leave encashment is increased from 3,00,000 to 25,00,000
6. New IT regime as default tax regime. Still, old regime will be available for tax assesses to choose.
7. Reduction of the highest surcharge from 37% to 25% in the new tax regime.ighlights of Union Budget 2023-24

TAX PLANNING FOR 2022-23

10 Tax planning individuals should do now for FY 2022-23 to avoid paying huge tax & interest at the time of Filing ITR.

1) Make rent agreement for HRA claiming when giving rent to parents / spouse / relatives etc . Remember If you miss to make the rent agreement you cannot claim benefit !

2) Keeping hard copy and soft copy of all medical expenses bill for parents above 60 not having medical policy to claim in section 80D Rs 50k.

3) Save all donations receipt to claim benefit in 80G and 80GGC as the same does not reflect in AIS & TIS

4) Opening an NPS account to claim Rs 50k benefit as deduction from income.

5) Start an SIP in Equity Tax saver MF or PPF till March 2023 to cover deduction in 80C . Balance between two as per age and risk appetite.

For Insurance buy only Term Plan and review cover, go for top up cover in case of increase in income or addition in family.

6) If you are in 30% bracket, Gift any assets generating income to family member without clubbing provision attraction to avoid 30% tax on it.

7) Open an HUF account for family and use for better tax planning and investment.

8) Do keep track of turnover in business or profession to check if GST is applicable during the year, take timely registration and pay tax to avoid interest and penalty.

9) If switching job, ensure your new employer knows and consider previous earnings while calculating TDS or alternatively pay advance tax

Also if having other income, pay advance tax during year.

10) Review your stock portfolio, if there are long terms capital gains of > 1 lac, check if you have any long term losses and book it before 31 March to take benefit of setoff of losses.

Remember Notional losses do not qualify for setoff against actual gains.

The CBI has started an investigation against three Income Tax department officials for allegedly facilitating fictitious refunds of TDS deducted for several assessee by misusing system access of senior officers, officials said on Sunday. The probe agency filed the FIR based on a complaint from Joint Commissioner of Income Tax, Muzaffarnagar against three group C officials of the Income Tax who allegedly managed to dupe the department by allegedly misusing RSA tokens of assessing officers to work out and generate fictitious refunds of Tax Deducted at Source (TDS).

The last date to file Income Tax Return for FY (Financial Year) 2021-22 is July 31, 2022. For other taxpayers to whom audit is applicable, the return filing due date is October 31, 2022. Normally, the due date for filing ITRs for all assesses whose accounts are not required to be audited is July 31.

The procedure of filing an Income Tax Return varies as per the income earned per year and income source like salary, business profit, investment profit and so on. Getting all your documents ready is just one aspect of it. There are certain documents required to be submitted and held as evidence under the Income Tax Act, 1961 and Income Tax Rules, 1962.

Generally, the required documents are Copy of PAN card, Copy of AADHAR card, Bank Statement / Bank passbook, Income Tax Login id & password. Other than that, it depends which tax you are eligible to pay. Check here the details of the documents needed for filing Income Tax Returns in India.

TYPES OF INCOME ON WHICH TAX IS LEVIABLE:
Income from Salary
Income from House Property
Income from Business & Profession
Income from Capital Gain
Income from Other Sources

LIST OF DOCUMENTS REQUIRED TO FILE YOUR INCOME TAX RETURN:

FORM 16:
Form 16 is also known as the TDS (Tax Deducted at Source) Certificate. Form 16 is the basis for filing the income tax returns. Thus, Form 16 is the first form that should be collected. The form is provided by your employer after furnishing the information related to the taxes paid on behalf of you. This is done after taking your salary, allowances, and deductions into consideration.

SALARY SLIPS:
For salaried taxpayers, it is important to keep the salary slip ready. The salary slip consists of all the basic details related to the salary of an individual, including basic salary, Dearness Allowance (DA), TDS amount, House Rent Allowances (HRA), Travelling Allowances (TA), standard deductions, etc. These details are necessary to file the income tax returns.

FORM 26AS:
Form 26AS is also known as the annual consolidated statement, which contains all tax-related information of the taxpayer. It also contains details of tax which is deducted at source and details of advance tax. Form 26AS is a very important financial document required before filing ITR. Apart from this, Form 26AS also reflects details of the Annual Information Return (AIR), which is filed by different entities based on what an individual has invested or spent, mostly high-value transactions.

FORM 16A:
Form 16A mentions TDS on interest income on fixed deposits. For instance, you will receive a Form 16A when your bank will deduct TDS on your interest income earned from Fixed Deposits, TDS on rent receipts, TDS on insurance commission or any other income which is liable for such deduction. Form 16A provides details of the income earned and TDS deducted and deposited on such income. It also contains the name and address of deductor/deductee, PAN details, TAN details of deductor and challan details of TDS deposited

PAN CARD:
A PAN card is one of the most important documents that you should keep ready with you. Your Permanent Account Number (PAN) acts as your identity proof and has to be mentioned in your Income Tax Returns.

AADHAAR CARD:
Providing Aadhaar details is mandatory to successfully file your ITR. According to section 139AA of the Income-tax Act, an individual is required to provide his/her Aadhaar details while filing the return of your income.

DEDUCTIONS UNDER SECTION 80D TO 80U:
Apart from the standard deductions under Section 80C, an individual can also claim exemptions under Section 80D to 80U of the Income Tax Act.

CAPITAL GAIN STATEMENT:
In case you have invested in shares, mutual funds, etc., you are required to collect a capital gain statement. This statement will be issued by your broking house. It contains the details of all the short-term capital gains that are required to be paid in case you have exited certain shares before the tenure of 1 year. Even though you may not have to pay taxes on long-term capital gains, you are required to mention them as well in your statement.

Income tax/GST updates Tax preparation service

From July 1 this year doctors, influencers and other such people who receive free items from companies will have to pay taxes for receiving them, the Income Tax department has declared. The Central Board of Direct Taxes in its guidelines issued for these new rules has notified that those who receive benefits will have to pay TDS at the rate of 10 per cent under the new tax rules. The tax board said that these perquisites may either be in cash, in kind or partly in both of these two means. Finance Act 2022 inserted a new section 194R in the Income-tax Act, 1961, which was notified during the Budget speech of finance minister Nirmala Sitharaman earlier this year.

“The new section mandates a person, who is responsible for providing any benefit or perquisite to a resident, to deduct tax at source at 10 per cent of the value or aggregate of value of such benefit or perquisite, before providing such benefit or perquisite," said the CBDT in its notice dated June 16

Income tax/GST updates Tax preparation service

The Income Tax Department has notified taxpayers that the option to file Income Tax Return for the current assessment year (AY) 2022-23 is available on the department’s website. The last date to file the ITR is 31 July.

Taxpayers can visit the website incometax.gov.in/iec/foportal to file their returns. “ITR filing for AY 2022-23 is available on e-filing portal. Check your Form 26AS, AIS & other relevant documents before submission,” the I-T department tweeted yesterday, 22 June.

incometax.gov.in

7 Advantages of filing ITR even if total income is below exemption limit< 2.5 Lakhs

1) It is an Income Proof for any small business which can be used to get insurance and other products. Further it serves as proof of accumulated earnings over the years

2) It helps in Hassle-free visa application procedure, as at times visa authorities ask for copies of past tax returns

3) Ease of getting loan as Bank do insist on ITR for any kind of loans

4) Even if you have losses do file as it It helps in Compensating losses in the next financial year via carry forward of losses and set off against profits

5) In case you have high value transactions its better to file to avoid notices from the tax department for non filing

6) If you do not file till due date remember you will not able to file the returns at all, as IT Dep has stopped accepting past returns ( which they accepted few years back and one had option to file 3 years returns at one go)

7) Motor Accidental Claim, Matrimonial claims, and other legal claims are based on earning capacity. This can be one of the proof

Lastly, 8) Discipline to maintain records up to date surely helps when they are needed later for any legal or social purpose

Income tax/GST updates Tax preparation service