#new tax regime slabs

[targetstudy]

Budget 2024 Highlights, New Tax Regime Slabs, Income Tax & More

This is the Interim budget 2024 which is presented by Finance Minister Nirmala Sitharaman. Nirmala Sitharaman presented her 7th budget in parliament.

In the budget 2024, which came just after the election results, the government has also paid the price for the ‘support’ of the allies. Special packages were given to the Bihar government and the Andhra Pradesh government.

At the same time, new employment opportunities have been opened to address the discontent among the youth who expressed their dissatisfaction in the Lok Sabha elections.

However, by increasing the capital gains tax on stock market investors, the burden on the middle class, already suffering from inflation, has been increased further.

In the new tax system, a slight relief has been provided by increasing the standard deduction from ₹50,000 to ₹75,000. Additionally, changes have been made to the income tax slab.

READ MORE: Budget 2024 Highlights, New Tax Regime Slabs, Income Tax & More

[edinijam]

ఆదాయపు పన్ను మినహాయింపులకు మంగళమేనా?

కేంద్ర ప్రభుత్వ బడ్జెట్ లో అంతో ఇంతో అందరినీ ఆకట్టుకున్న అంశం ఏదైనా ఉందంటే అది ఉద్యోగుల ఆదాయ పన్ను పరిమితి పెంపు అని చెప్పుకోవచ్చు. బహుశా ఎన్నికల ఏడాది కాబట్టి ఉద్యోగులపై కరుణ చూపినట్టుంది. ఆదాయపు పన్ను పరిమితిని ఏడు లక్షల వరకు పెంచడం చాలా మందికి ఊరట నిచ్చే అంశమే. అయితే ఈ చర్యతో మరీ ఆహా ఓహో అని సంబరపడేంత సీన్ కూడా లేదు. ఎందుకంటే  5 లక్షల నుంచి 7 లక్షల రూపాయల వరకు వేతనం పొందుతున్నవారు భారీ సంఖ్యలో…

[lawyer2ca]

Highlights of Budget 2023 - @lawyer2ca®️ ✅The income tax slabs under the new regime are: > Up to Rs 3 lakh - 0% tax > Between Rs 3 & 6 lakh - 5% tax > Between Rs 6 & 9 lakh - 10% tax > Between Rs 9 lakh & Rs 12 lakh - 15% tax > Between Rs 12 lakh & Rs 15 lakh - 20% tax > Above Rs 15 lakh above - 30% tax ✅Standard deduction of Rs 50,000 for the New Alternate Tax Regime ✅For the New Alternate Tax Regime cases, there will be no tax if the total income is up to Rs 7.5 lakhs ✅Surcharge on incomes above INR 5 crores has been reduced from 37% of tax to 25% #Lawyer2CA #entrepreneur #incometax #UnionBudget2023 #NirmalaSitharaman #finance #Global #india #Budget2023 (at Lawyer2CA) https://www.instagram.com/p/CoT-xqNyraJ/?igshid=NGJjMDIxMWI=

[news365timesindia]

Complicated tax-system in India with six-decades old Income Tax Act 1961 with too many amendments in form of lot of confusing patch-works is in force. Likewise, ever since a reformative step of introducing Goods & Service Tax (GST) Act was introduced from 1st July 2017, there has been a regular practice of changing tax-structure in ever-confusing GST regime with too many confusing and complicated provisions incorporated in the system.   An altogether new tax-regime should be introduced without patches of useless and largely misused exemptions. Implementation of Raja Chelliah Committee recommendations to fix highest tax-slab at 30-percent to be in tune with most countries in the world, had largely abolished practice of converting black money into white money. Gradually increasing this highest slab also through imposing cess and surcharges has undone the good achieved. Highest tax-slab of 30-percent should be restored so that people may find it advantageous to bring complete income to books. Rather a permanent Voluntary Disclosure Scheme should be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income. This will make cash-transaction specially in property-deals accounted if registration-fees on property-deals is also reduced to say just three-percent. Names of all those disclosing incomes under suggested highest 30-percent slab should be on website according to income disclosed so that status-conscious persons may race to disclose more incomes.   Basix tax exemption should be fixed at rupees five lakhs abolishing most tax-exemptions including on charity, donation, contribution to political parties and even agricultural-income which are largely misused. An ordinary farmer does not earn more than rupees five lakhs per annum, and the provision is grossly misused by ultra-rich persons including known celebrities to declare their unaccounted income as agricultural income through some village-land purchased only for the purpose without practically having any agricultural produce. Income Tax slabs can then be 10 and 20 percent for incomes between 5-10 lakhs and 10-15 lakhs respectively and thereafter 30-percent for rest. LK Jha committee recommendations to make calendar-year as financial-year should be implemented to be in line with most countries of the world, thus abolishing another British legacy of following April-March presently as Fiscal Year. It is ridiculous to have different Depreciation-Rules for Tax and Corporate audits. There should be a single and unified Tax and Corporate Audit.   Rather than concentrating more on small cash-transactions, all sale-purchases above rupees 10000 must be compulsorily through bank-transactions. For this, transaction-charges on credit-cards should be slashed down to just half-percent (GST-exempted) that too to be borne by central government with all incentives on purchases made through credit-cards abolished. Present high two-percent transaction-charges on credit-cards make traders charge it separately from customers specially where trade-margins are low. Such a system will fetch much higher tax-revenue for government, than through half-percent transaction-charges to be borne by government. Banks issuing credit-cards will get much-more earning even with half-percent transaction-charge because of manifold use of credit-cards. Two sets of credit-card swapping-machines should be compulsory for every GST-registered dealer dealing also in cash so as to avoid payment-receipt through credit-cards with usual excuse that swapping-machine is out of order. Strict-most action must be there against those refusing payment through credit/debit cards.   Input-Tax-Credit system in GST-regime in manufacturing-sector is biggest corrupt practice of tax-evasion where left-out GST-invoices by ordinary customers are sold by traders to consuming manufacturers or producers to avail false Input-Tax-Credit where

cash is paid back by traders to those purchasing left-out GST-invoices of actual consumers bringing more currency in circulation, this being the reason of basic motive of currency-demonetisation being failed where currency in circulation rapidly increased rather than projected decrease. Annual forensic audit may be made compulsory on claims made for Input-Tax-Credit by manufacturers/producers to avoid false claims of excessive Input-Tax-Credit in these sectors. Rather study should be made if with abolition of an excessively high 18-percent GST slab, Input-Tax-Credit can be altogether abolished from manufacturing/producing sectors, retaining it only on tradable commodities.   But such reform in Input-Tax-Credit system can be practically possible with drastic reform in GST tax-structure wherein initially only three tax-slabs of 6, 12 and 30 percent may be there abolishing all presently existing GST-rates. India is the only country which has so many GST-rates. Gradually even slabs of 6 and 12 percent may also be replaced by a new 10-percent tax-structure. Zero-percent GST may only be retained on totally unbranded raw-materials which cannot be consumed without giving a finishing touch like agricultural-products, fish, meat, cotton-yarn etc. All items of long-term use like cars, air-conditioners, TV-sets, refrigerators etc may attract 30-percent GST while their parts may uniformly attract 12-percent GST. Unmindful policy-framers brought clutch-plate and clutch-bearing under different GST-slabs of 18 and 28 percent. Likewise similar items sold by confectioners like sweets, biscuits, namkins etc attract different GST-slabs with luxury sweets causing diabetes attract just 5-percent GST.   Invoices for items like gold-jewellery can be drawn in two parts, one for metal and embodied items and the other for making-charges so that suggested 12-percent GST may be payable only on making-charges. Cess on extra-luxurious items should be replaced by additional GST-slabs in multiples of 60-percent, also bringing petroleum products under GST-regime to ensure uniform pricing of petrol and diesel in all states. Abolishing 18-percent GST-slab will be more than compensated by clubbing lower slabs of 3 and 5 percent into single 6-percent GST-slab. Input-Tax-Credit (ITC) system should not be applicable on non-tradable commodities and services like has been done, and rightly too, in case of car-expenses for non-commercial use.   With GST-slab of 18-percent abolished and service sector then attracting just 12-percent GST, those with income of rupees ten lakhs or more (instead of present rupees 20 lakhs) can be brought under GST-regime like was the system before GST-regime. It is totally illogical to keep lawyers out of purview of GST-regime. Useless system of Tax-Deducted-At-Source for GST, which is hardly used in practice, should be altogether abolished. Or otherwise, any such deducted tax should be auto-reflected in GST-accounts of affected ones, abolishing cumbersome practice of filing a new monthly return to get credit of deducted GST.   All government-payments can be considered to be exempted from GST to avoid unnecessary government-accounting by putting tax from one government-pocket to other. It is illogical that some premium postal-services like Speed-Post may attract GST while other postal-services do not attract GST. Even illogical and irrational postal-rates (both inland and foreign) need simplification for equal rise of postal-tariff for equal rise in slab-weight in multiples of 50 gms. of inland postal-article with all postal-tariffs being in multiples of rupees ten except for registered-newspapers and post-cards which may cost rupee one with abolition of outdated Inland-Letter-Cards. Presently a postal-article weighing 200 gms sent locally by reliable and fast Speed Post costs just rupees 30 but if sent by unreliable ordinary post, it will cost rupees 50. Likewise foreign-mail tariffs can be fixed for 20 gms or part slab-weight independently for air and sea-surface-mail.

[news365times]

Complicated tax-system in India with six-decades old Income Tax Act 1961 with too many amendments in form of lot of confusing patch-works is in force. Likewise, ever since a reformative step of introducing Goods & Service Tax (GST) Act was introduced from 1st July 2017, there has been a regular practice of changing tax-structure in ever-confusing GST regime with too many confusing and complicated provisions incorporated in the system.   An altogether new tax-regime should be introduced without patches of useless and largely misused exemptions. Implementation of Raja Chelliah Committee recommendations to fix highest tax-slab at 30-percent to be in tune with most countries in the world, had largely abolished practice of converting black money into white money. Gradually increasing this highest slab also through imposing cess and surcharges has undone the good achieved. Highest tax-slab of 30-percent should be restored so that people may find it advantageous to bring complete income to books. Rather a permanent Voluntary Disclosure Scheme should be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income. This will make cash-transaction specially in property-deals accounted if registration-fees on property-deals is also reduced to say just three-percent. Names of all those disclosing incomes under suggested highest 30-percent slab should be on website according to income disclosed so that status-conscious persons may race to disclose more incomes.   Basix tax exemption should be fixed at rupees five lakhs abolishing most tax-exemptions including on charity, donation, contribution to political parties and even agricultural-income which are largely misused. An ordinary farmer does not earn more than rupees five lakhs per annum, and the provision is grossly misused by ultra-rich persons including known celebrities to declare their unaccounted income as agricultural income through some village-land purchased only for the purpose without practically having any agricultural produce. Income Tax slabs can then be 10 and 20 percent for incomes between 5-10 lakhs and 10-15 lakhs respectively and thereafter 30-percent for rest. LK Jha committee recommendations to make calendar-year as financial-year should be implemented to be in line with most countries of the world, thus abolishing another British legacy of following April-March presently as Fiscal Year. It is ridiculous to have different Depreciation-Rules for Tax and Corporate audits. There should be a single and unified Tax and Corporate Audit.   Rather than concentrating more on small cash-transactions, all sale-purchases above rupees 10000 must be compulsorily through bank-transactions. For this, transaction-charges on credit-cards should be slashed down to just half-percent (GST-exempted) that too to be borne by central government with all incentives on purchases made through credit-cards abolished. Present high two-percent transaction-charges on credit-cards make traders charge it separately from customers specially where trade-margins are low. Such a system will fetch much higher tax-revenue for government, than through half-percent transaction-charges to be borne by government. Banks issuing credit-cards will get much-more earning even with half-percent transaction-charge because of manifold use of credit-cards. Two sets of credit-card swapping-machines should be compulsory for every GST-registered dealer dealing also in cash so as to avoid payment-receipt through credit-cards with usual excuse that swapping-machine is out of order. Strict-most action must be there against those refusing payment through credit/debit cards.   Input-Tax-Credit system in GST-regime in manufacturing-sector is biggest corrupt practice of tax-evasion where left-out GST-invoices by ordinary customers are sold by traders to consuming manufacturers or producers to avail false Input-Tax-Credit where

cash is paid back by traders to those purchasing left-out GST-invoices of actual consumers bringing more currency in circulation, this being the reason of basic motive of currency-demonetisation being failed where currency in circulation rapidly increased rather than projected decrease. Annual forensic audit may be made compulsory on claims made for Input-Tax-Credit by manufacturers/producers to avoid false claims of excessive Input-Tax-Credit in these sectors. Rather study should be made if with abolition of an excessively high 18-percent GST slab, Input-Tax-Credit can be altogether abolished from manufacturing/producing sectors, retaining it only on tradable commodities.   But such reform in Input-Tax-Credit system can be practically possible with drastic reform in GST tax-structure wherein initially only three tax-slabs of 6, 12 and 30 percent may be there abolishing all presently existing GST-rates. India is the only country which has so many GST-rates. Gradually even slabs of 6 and 12 percent may also be replaced by a new 10-percent tax-structure. Zero-percent GST may only be retained on totally unbranded raw-materials which cannot be consumed without giving a finishing touch like agricultural-products, fish, meat, cotton-yarn etc. All items of long-term use like cars, air-conditioners, TV-sets, refrigerators etc may attract 30-percent GST while their parts may uniformly attract 12-percent GST. Unmindful policy-framers brought clutch-plate and clutch-bearing under different GST-slabs of 18 and 28 percent. Likewise similar items sold by confectioners like sweets, biscuits, namkins etc attract different GST-slabs with luxury sweets causing diabetes attract just 5-percent GST.   Invoices for items like gold-jewellery can be drawn in two parts, one for metal and embodied items and the other for making-charges so that suggested 12-percent GST may be payable only on making-charges. Cess on extra-luxurious items should be replaced by additional GST-slabs in multiples of 60-percent, also bringing petroleum products under GST-regime to ensure uniform pricing of petrol and diesel in all states. Abolishing 18-percent GST-slab will be more than compensated by clubbing lower slabs of 3 and 5 percent into single 6-percent GST-slab. Input-Tax-Credit (ITC) system should not be applicable on non-tradable commodities and services like has been done, and rightly too, in case of car-expenses for non-commercial use.   With GST-slab of 18-percent abolished and service sector then attracting just 12-percent GST, those with income of rupees ten lakhs or more (instead of present rupees 20 lakhs) can be brought under GST-regime like was the system before GST-regime. It is totally illogical to keep lawyers out of purview of GST-regime. Useless system of Tax-Deducted-At-Source for GST, which is hardly used in practice, should be altogether abolished. Or otherwise, any such deducted tax should be auto-reflected in GST-accounts of affected ones, abolishing cumbersome practice of filing a new monthly return to get credit of deducted GST.   All government-payments can be considered to be exempted from GST to avoid unnecessary government-accounting by putting tax from one government-pocket to other. It is illogical that some premium postal-services like Speed-Post may attract GST while other postal-services do not attract GST. Even illogical and irrational postal-rates (both inland and foreign) need simplification for equal rise of postal-tariff for equal rise in slab-weight in multiples of 50 gms. of inland postal-article with all postal-tariffs being in multiples of rupees ten except for registered-newspapers and post-cards which may cost rupee one with abolition of outdated Inland-Letter-Cards. Presently a postal-article weighing 200 gms sent locally by reliable and fast Speed Post costs just rupees 30 but if sent by unreliable ordinary post, it will cost rupees 50. Likewise foreign-mail tariffs can be fixed for 20 gms or part slab-weight independently for air and sea-surface-mail.

[ebizfilingindia-blog]

New Tax Regime vs. Old Tax Regime: Which Offers Better Income Tax Exemptions?  

The introduction of the New Tax Regime in the Union Budget 2020 through the Government of India created a stir amongst taxpayers. While the New Tax Regime offers reduced tax costs, it gets rid of most of the traditional income tax exemptions and deductions. On the opposite hand, the Old Tax Regime keeps to permit taxpayers to claim numerous exemptions and deductions, doubtlessly decreasing their tax liability.

This article explores the key variations between the two regimes and let you decide which one gives better income tax exemptions.

Overview of the Old Tax Regime

The Old Tax Regime operates on a innovative tax slab system, permitting taxpayers to reduce their taxable earnings with the aid of claiming a variety of exemptions and deductions. Some not unusual profits tax exemptions encompass:

House Rent Allowance (HRA)

Leave Travel Allowance (LTA)

Standard Deduction for salaried individuals

Exemptions on investments under Section 80C, Section 80D, and other sections

These exemptions and deductions assist taxpayers decrease their taxable profits, making the Old Tax Regime an attractive alternative for those who've deliberate their finances to maximize their tax financial savings.

Overview of the New Tax Regime

The New Tax Regime also follows a revolutionary slab machine but with decrease tax rates as compared to the Old Tax Regime. However, it does no longer offer common income tax exemptions or deductions.

Under this regime, taxpayers pay taxes based totally at the earnings they earn with out adjusting for any investments, savings, or other conventional tax-saving instruments. The foremost objective of the New Tax Regime is to simplify tax filing via eliminating the want to song and declare a couple of deductions.

Key Differences Between the Two Regimes

Tax Rates

The tax rates beneath the New Tax Regime are decrease than the Old Tax Regime. For instance, below the New Tax Regime, incomes as much as ₹15 lakh are taxed at a lower charge, ranging from 5% to twenty-five%, depending on the income slab. In contrast, underneath the Old Tax Regime, earning inside the equal range are taxed at prices from five% to 30%.

Income Tax Exemptions

One of the most enormous differences among the two regimes is the provision of exemptions and deductions. Under the Old Tax Regime, taxpayers can claim quite a number exemptions consisting of HRA, LTA, and deductions under Section 80C (up to ₹1.Five lakh), Section 80D (health insurance charges), and extra.

The New Tax Regime, alternatively, does no longer allow these exemptions, meaning taxpayers need to forego the gain of deductions and report taxes without delay based on their gross income.

Ease of Filing

The New Tax Regime simplifies the tax submitting technique seeing that taxpayers aren't required to maintain distinctive documentation in their costs and investments. This is beneficial for those who do now not have complicated monetary portfolios or do not want to plan their taxes around exemptions and deductions.

The Old Tax Regime, even though beneficial for tax savings, requires taxpayers to carefully record and declare various deductions and exemptions, that could make tax submitting a greater time-ingesting assignment.

Flexibility in Tax Planning

The Old Tax Regime is better perfect for those who actively put money into tax-saving units like Public Provident Fund (PPF), National Pension Scheme (NPS), or purchase coverage regulations for tax deductions. The New Tax Regime, in assessment, gives no flexibility in terms of tax planning because it gets rid of exemptions and deductions altogether.

Which Regime Offers Better Income Tax Exemptions? 

The answer depends in large part on character monetary situations and choices.

For individuals with high savings and investments:

The Old Tax Regime can be extra useful as it lets in taxpayers to claim exemptions on investments, coverage charges, housing loans, and other tax-saving equipment. If you have got considerable investments below Section 80C, medical health insurance charges, and other deductible costs, the Old Tax Regime can cause tremendous tax savings.

For individuals with no or minimal tax-saving investments:

The New Tax Regime might be extra beneficial as it gives lower tax prices. If you do no longer put money into tax-saving contraptions or declare different deductions, the New Tax Regime offers a less complicated, extra straightforward approach to tax calculation.

How to Decide Between the Two?

To decide which regime works satisfactory for you, it is really useful to calculate your tax legal responsibility under each regimes. If the whole quantity of income tax exemptions and deductions you may claim underneath the Old Tax Regime substantially reduces your taxable income, it can be well worth staying in that regime. On the opposite hand, in case you do not gain tons from those deductions, the New Tax Regime, with its decrease fees, is probably a better option.

Conclusion

Choosing between the New Tax Regime and the Old Tax Regime relies upon your earnings structure, funding conduct, and willingness to assert income tax exemptions. For taxpayers who rely heavily on tax-saving investments and exemptions, the Old Tax Regime gives widespread advantages.

However, for the ones searching out a simplified system with decrease tax prices, the New Tax Regime is probably greater high-quality. It’s crucial to assess your financial state of affairs and calculate your tax legal responsibility beneath both regimes to make an informed choice.

[filinggst]

Latest Income Tax Slab for Senior Citizens: FY2023-24 - Tax Craft Hub

For the financial year 2023-24 (Assessment Year 2024-25), the income tax slabs for senior citizens (aged 60 to 79 years) in India under the old tax regime are as follows: Income up to ₹3,00,000 is exempt from tax. Income between ₹3,00,001 and ₹5,00,000 is taxed at 5%, between ₹5,00,001 and ₹10,00,000 at 20%, and above ₹10,00,000 at 30%. Under the new tax regime, which is optional, there is no special exemption for senior citizens; the tax rates apply as per the general slabs, with income up to ₹2,50,000 exempt, between ₹2,50,001 and ₹5,00,000 taxed at 5%, between ₹5,00,001 and ₹7,50,000 at 10%, between ₹7,50,001 and ₹10,00,000 at 15%, between ₹10,00,001 and ₹12,50,000 at 20%, between ₹12,50,001 and ₹15,00,000 at 25%, and above ₹15,00,000 at 30%. Additionally, senior citizens are eligible for a rebate under Section 87A if their total income is up to ₹5,00,000, reducing their tax liability to zero under both regimes.

For More Information Income Tax Slab for Senior Citizens

[citizenrecord]

"Save As Much As ₹ 17,500": Finance Minister on New Tax Regime Slabs

Standard deduction in the new tax regime will be increased from ₹ 50,000 to ₹ 75,000, Finance Minister Nirmala Sitharaman said Tuesday as she announced the 2024 Union Budget.

Ms Sitharaman also announced revisions to tax slabs in the new regime. As a result, the Finance Minister told Parliament, salaried employees can save as much as ₹ 17,500 in the new regime.

It will also, she said, provide salaried individuals with higher tax savings and more disposable income.

Existing new tax regime slabs (effective for FY 2023-24) were as follows:

Income up to ₹ 3 lakh - Nil Rs 3 lakh to ₹ 6 lakh - 5 per cent Rs 6 lakh to ₹ 9 lakh - 10 per cent Rs 9 lakh to ₹ 12 lakh - 15 per cent Rs 12 lakh to ₹ 15 lakh - 20 per cent Above ₹ 15 lakh - 30 per cent The increase in standard deduction was one of the most anticipated ahead of the budget speech.

Industry experts speculated this could double to ₹ 1,00,000, but Ms Sitharaman fell slightly short.

In addition, deduction on family pension for pensioners will be increased from ₹ 15,000 to ₹ 25,000.

These tweaks will bring relief for around four crore salaried individuals and pensioners, she said.

Changes to income tax slabs, old and new, were in focus ahead of Ms Sitharaman's speech as the country's mammoth middle class clamoured for relief from tax burdens. There was little joy for the middle class in the interim budget - which pegged gross tax revenue at ₹ 38.31 lakh crore for 2024-25, an 11.46 per cent growth over the last fiscal - so all eyes were on the Finance Minister today.

Ms Sitharaman, however, had to walk a tight rope as she looks to stimulate growth and provide relief.

Another big expectation was a hike in exemption limit. Under the new regime, those earning under ₹ 3 lakh a year are exempt from paying tax. There was speculation this could be raised to ₹ 5 lakh.

There was, however, no such announcement.

There was also no changes announced for tax slabs under the old regime. This is amid speculation the government plans to do away with this option for next year.

The Finance Minister also announced a comprehensive review of the Income Tax Act of 1961, which will make it easier to read and understand, and reduce uncertainty and potential for litigation.

This will be completed in six months.

As part of this overhaul, Ms Sitharaman said tax authorities could only re-open assessments within three years from end of assessment and if the escaped income is ₹ 50 lakh and over.

Even then, the time limit for search cases is to be reduced from 10 years to six before year of search.

"A beginning is being made in the Finance Bill by simplifying the tax regime for charities, TDS rate structure, provisions for reassessment and search provisions and capital gains taxation," she said.

As per the proposal, two tax exemption regimes for charities will be merged into one.

The five per cent TDS, or Tax Deducted at Source, rate is being merged into the two per cent rate and the 20 per cent rate on repurchase of units by mutual funds, or UTI, is being withdrawn, she said.

The TDS rate on e-commerce operators will be reduced from one to 0.1 per cent, she added.

Also, Ms Sitharaman said she proposed to decriminalise delay for payment of TDS, or Tax deducted at Source, up to the due date of filing the concerned statement.

[taxblgs]

Missed the July 31 Deadline? No Worries! You Can Still File Your ITR with a Belated Return! learn more

Taxpayers who did not file their income tax returns on time, before the July 31 deadline, can file a belated return. Let’s learn more about this here.

If you missed the original deadline for filing your income tax return (ITR), you are not alone. Fortunately, you can still file a belated return, which is effectively a late submission of your ITR. Here’s a quick guide to walk you through the process:

Understand the Belated Return Concept

A belated return under Section 139(4) of the Income Tax (I-T) Act is one that is filed after the deadline. Taxpayers who failed to file a return on or before July 31 may file a late return.

People can file a belated return by December 31 of the applicable assessment year.

It is important to remember, however, that taxpayers who file belated returns are not exempt from the late filing penalty.

Eligibility for Filing a Belated Return

The good news is that there are no specific income thresholds or tax liabilities that restrict your ability to file a belated return. If you were initially required to file a return but missed the deadline, you are still eligible to submit a belated return.

When Filing an Income Tax Return (ITR) is Mandatory

To help you understand when filing an ITR is a must, here are some key conditions:

1.Income Threshold: If your total annual income exceeds Rs. 2,50,000, you are required to file an ITR.

2. Bank Transactions: If you have deposited more than Rs. 1 crore in a current account with a cooperative or regular bank during the financial year, filing an ITR is mandatory.

3.Foreign Travel Expenditure: If your spending on foreign travel surpasses Rs. 2 lakhs within the financial year, you must file an ITR.

4. Electricity Bill: If your total electricity bill exceeds Rs. 1 lakh, filing an ITR is required.

Filing Your Belated Return

If any of the above conditions apply to you, and you missed the original deadline, you can still file a belated return. Here’s what to do:

1.Choose the Correct Section: When filing your belated return, make sure to select Section 139(4) of the Income Tax Act. This section is specifically for belated returns.

2. Submit Your Return: Complete the form with all the required details and submit it through the official tax portal.

3. Pay Late Fees: Be aware that there might be late fees applicable, so check the latest guidelines for any penalties.

Filing a belated return ensures that you remain compliant with tax regulations and avoid further complications. Make sure to keep records of your submission and any related documents for future reference.

Additional Tips: Consult a Tax Professional: If you are unsure about any aspect of the process, get help from a tax specialist. They can offer helpful advice and guarantee that your late return is filed correctly.

Stay Informed: Keep track of any changes to tax regulations or deadlines to maintain compliance and prevent excessive penalties.

Filing a belated return may be daunting, but following these steps will help you navigate the process quickly and ensure that you satisfy your tax responsibilities.

Read also:

How to response defective notice ?

Budget 2024 income tax slab

Old Vs New tax regime which is better ?

[taxring]

Missed the July 31 Deadline? No Worries! You Can Still File Your ITR with a Belated Return! learn more

Taxpayers who did not file their income tax returns on time, before the July 31 deadline, can file a belated return. Let’s learn more about this here.

If you missed the original deadline for filing your income tax return (ITR), you are not alone. Fortunately, you can still file a belated return, which is effectively a late submission of your ITR. Here’s a quick guide to walk you through the process:

Understand the Belated Return Concept

A belated return under Section 139(4) of the Income Tax (I-T) Act is one that is filed after the deadline. Taxpayers who failed to file a return on or before July 31 may file a late return.

People can file a belated return by December 31 of the applicable assessment year.

It is important to remember, however, that taxpayers who file belated returns are not exempt from the late filing penalty.

Eligibility for Filing a Belated Return

The good news is that there are no specific income thresholds or tax liabilities that restrict your ability to file a belated return. If you were initially required to file a return but missed the deadline, you are still eligible to submit a belated return.

When Filing an Income Tax Return (ITR) is Mandatory

To help you understand when filing an ITR is a must, here are some key conditions:

1.Income Threshold: If your total annual income exceeds Rs. 2,50,000, you are required to file an ITR.

2. Bank Transactions: If you have deposited more than Rs. 1 crore in a current account with a cooperative or regular bank during the financial year, filing an ITR is mandatory.

3.Foreign Travel Expenditure: If your spending on foreign travel surpasses Rs. 2 lakhs within the financial year, you must file an ITR.

4. Electricity Bill: If your total electricity bill exceeds Rs. 1 lakh, filing an ITR is required.

Filing Your Belated Return

If any of the above conditions apply to you, and you missed the original deadline, you can still file a belated return. Here’s what to do:

1.Choose the Correct Section: When filing your belated return, make sure to select Section 139(4) of the Income Tax Act. This section is specifically for belated returns.

2. Submit Your Return: Complete the form with all the required details and submit it through the official tax portal.

3. Pay Late Fees: Be aware that there might be late fees applicable, so check the latest guidelines for any penalties.

Filing a belated return ensures that you remain compliant with tax regulations and avoid further complications. Make sure to keep records of your submission and any related documents for future reference.

Additional Tips: Consult a Tax Professional: If you are unsure about any aspect of the process, get help from a tax specialist. They can offer helpful advice and guarantee that your late return is filed correctly.

Stay Informed: Keep track of any changes to tax regulations or deadlines to maintain compliance and prevent excessive penalties.

Filing a belated return may be daunting, but following these steps will help you navigate the process quickly and ensure that you satisfy your tax responsibilities.

Read also:

How to response defective notice ?

Budget 2024 income tax slab

Old Vs New tax regime which is better ?

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A Comprehensive Guide to GST Verification

The Goods and Services Tax (GST) is a landmark reform in the Indian taxation system, introduced to streamline the indirect tax structure and bring about greater transparency in business transactions. Since its implementation, GST has revolutionised how businesses operate, ensuring a more uniform tax regime nationwide. As GST becomes an integral part of the business landscape, the need for accurate GST verification has emerged as a critical aspect of compliance and financial integrity. This guide aims to provide an in-depth understanding of GST verification, its processes, challenges, and benefits.

Understanding GST (Goods and Services Tax)

The Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax levied on every value addition. GST has subsumed various indirect taxes previously imposed by the central and state governments, including excise duty, VAT, and service tax. This unified tax structure simplifies the tax system, reduces the cascading effect of taxes, and promotes ease of doing business.

The journey of GST in India began in 2000 when a committee was set up to draft the law. After several years of deliberation and amendments, the GST Bill was finally passed in the Parliament in 2017, and GST was implemented on July 1, 2017. Since its inception, GST has undergone numerous amendments to address industry concerns and streamline processes.

History of Goods and Services Tax (GST) in India - Timeline

Key Components of GST

GST is divided into several components to ensure a fair distribution of tax revenue between the central and state governments:

Central Goods and Services Tax (CGST): Levied by the central government on intra-state supplies of goods and services.

State Goods and Services Tax (SGST): Levied by the state government on intra-state supplies of goods and services.

Integrated Goods and Services Tax (IGST): Levied on inter-state supplies of goods and services and is collected by the central government.

Union Territory Goods and Services Tax (UTGST): Levied on the supply of goods and services in Union Territories.

Old Tax Regime and New Tax Regime

Old Tax Regime Overview

The old tax regime in India is characterized by its complexity and numerous exemptions and deductions that taxpayers can claim to reduce their taxable income. It has been in place for many years and has evolved with changes and additions to tax laws.

Features

Income Tax Slabs: The old regime has different tax slabs based on age categories, including those below 60 years, senior citizens (60-80 years), and super senior citizens (above 80 years).

Exemptions and Deductions:

Section 80C: Deductions up to INR 1.5 lakh for investments in PPF, EPF, life insurance premiums, and other specified instruments.

Section 80D: Deductions for medical insurance premiums.

Section 24(b): Deductions on home loan interest.

House Rent Allowance (HRA): Exemption on HRA based on rent paid and salary structure.

Standard Deduction: For salaried individuals.

Other Deductions: Various other deductions for education loans, donations to charitable institutions, and more.

Complexity: The old regime requires taxpayers to maintain records and proofs for all exemptions and deductions claimed, making it relatively complicated.

Advantages

Tax Savings: Numerous exemptions and deductions allow taxpayers to significantly reduce their taxable income.

Encouragement for Savings and Investments: Various deductions encourage taxpayers to invest in specific financial instruments and savings schemes.

Disadvantages

Complexity: Managing and documenting the various exemptions and deductions can be cumbersome.

High Compliance Requirement: Taxpayers must be well-versed with tax laws and maintain proper documentation.

Old Tax Slab 

Income up to INR 2.5 lakh: NIL

Income from INR 2.5 lakh to INR 5 lakh: 5%

Income from INR 5 lakh to INR 10 lakh: 20%

Income from INR 10 lakh and above: 30%

New Tax Regime Overview

Introduced in the Union Budget 2020, the new tax regime offers simplified tax slabs with lower rates but without most of the exemptions and deductions available under the old regime. It aims to simplify the tax filing process and reduce the compliance burden.

Features

Income Tax Slabs: The new regime provides different tax slabs with lower rates but does not differentiate based on age.

No Exemptions and Deductions: Most exemptions and deductions available in the old regime are not applicable in the new regime.

Optional: Taxpayers can choose between the old and new regimes based on what is more beneficial for them.

New Tax Slabs (FY 2020-21 onwards)

Income up to INR 2.5 lakh: NIL

Income from INR 2.5 lakh to INR 5 lakh: 5%

Income from INR 5 lakh to INR 7.5 lakh: 10%

Income from INR 7.5 lakh to INR 10 lakh: 15%

Income from INR 10 lakh to INR 12.5 lakh: 20%

Income from INR 12.5 lakh to INR 15 lakh: 25%

Income above INR 15 lakh: 30%

Advantages

Simplicity: The absence of numerous exemptions and deductions simplifies the tax filing process.

Lower Tax Rates: For many taxpayers, the lower tax rates can result in tax savings even without claiming deductions.

Disadvantages

No Incentives for Savings and Investments: The lack of deductions may discourage taxpayers from investing in specific financial instruments or savings schemes.

Comparison Required: Taxpayers must calculate their tax liability under both regimes to determine which is more beneficial.

Old Tax Regime VS New Tax Regime

Choosing Between the Two

Taxpayers must assess their income, available exemptions, and deductions to decide which regime is more beneficial. Generally:

Old Regime: Beneficial for those with significant exemptions and deductions.

New Regime: Suitable for those who prefer simplicity and have fewer deductions to claim.

GST Registration

Eligibility Criteria for GST Registration: GST registration is mandatory for businesses whose turnover exceeds a specified threshold limit, which varies for goods and services. Additionally, companies such as e-commerce operators, casual taxable persons, and input service distributors must register for GST regardless of turnover.

Step-by-Step Guide to GST Registration

Visit the GST Portal: Access the GST registration page on the official GST portal.

Fill Part-A of the Form: Provide basic details such as PAN, mobile number, and email ID.

Verification: An OTP will be sent to your mobile number and email for verification.

Fill Part-B of the Form: Enter detailed business information, including business address, bank account details, and the principal place of business.

Upload Documents: Submit required documents such as proof of business address, bank account statement, and identity proof.

Submit Application: Complete the application and submit it for processing.

Receive GSTIN: Upon approval, you will receive a unique Goods and Services Tax Identification Number (GSTIN).

Documents Required for GST Registration

PAN card of the business or applicant

Proof of business registration or incorporation certificate

Identity and address proof of promoters/directors with photographs

Business address proof

Bank account statement/canceled cheque

Digital signature

Benefits of GST Registration

Legal recognition as a supplier of goods or services

Ability to collect tax from customers and pass on the credit

Seamless flow of input tax credit

Competitive advantage by enhancing business credibility

GST verification is the process of validating the GSTIN (Goods and Services Tax Identification Number) of a business entity. It ensures that the GSTIN provided by suppliers or vendors is authentic and registered under the GST regime. Verification helps prevent tax evasion and ensures compliance with tax laws.

What is GST Verification?

GST verification is the process of validating the GSTIN (Goods and Services Tax Identification Number) of a business entity. It ensures that the GSTIN provided by suppliers or vendors is authentic and registered under the GST regime. Verification helps prevent tax evasion and ensures compliance with tax laws.

When and Why GST Verification is Needed?

GST verification is essential during various business transactions, including:

Onboarding new suppliers or vendors

Filing GST returns

Conducting audits

Ensuring compliance with anti-profiteering laws

Verification helps businesses avoid fraudulent transactions, incorrect GST credits, and legal complications arising from non-compliance.

Learn More:

How Verification APIs are helping businesses transform and scale-up

Everything You Need To Know About Aadhaar Verification

Identity Verification - How to Check PAN Aadhaar Linking Status with API

Types of GST Verification

Manual Verification Manual verification involves checking the GSTIN details on the official GST portal. This method is time-consuming and prone to human errors but is useful for verifying a small number of GSTINs.

Online Verification Online verification is done using the GST portal, where businesses can enter the GSTIN and verify its authenticity. This method is quicker than manual verification but still requires individual input for each GSTIN.

Automated Verification Tools Automated verification tools streamline the verification process by allowing bulk verification of GSTINs. These tools integrate with the GST portal and provide real-time verification, reducing the time and effort required for manual checks.

Challenges in GST Verification

Common Issues Faced During Verification

Incorrect GSTIN entries leading to invalid results

Network or portal downtime affecting verification

Discrepancies in registered details

Errors and Discrepancies in GST Numbers: Errors in GST numbers can arise due to manual entry mistakes or misinformation. Common discrepancies include incorrect PAN linkage, invalid business details, or outdated information.

Dealing with Fraudulent GST Numbers: Fraudulent GST numbers pose a significant risk to businesses. To combat this, businesses should regularly verify GSTINs, maintain accurate records, and report suspicious activities to tax authorities.

Benefits of GST Verification

Ensuring Compliance with Tax Regulations Regular GST verification ensures that businesses comply with tax regulations, avoiding penalties and legal issues. It helps maintain accurate records and timely filing of GST returns.

Reducing the Risk of Fraud Verification helps identify and eliminate fraudulent GSTINs, protecting businesses from financial losses and reputational damage.

Enhancing Business Credibility and Trust Businesses that regularly verify GSTINs demonstrate their commitment to compliance and transparency, enhancing credibility and trust among stakeholders.

Technological Advancements in GST Verification: Emerging technologies like blockchain, artificial intelligence (AI), and machine learning are poised to transform GST verification, delivering superior security, precision, and efficiency.

How to Verify GST Numbers?

Step-by-Step Process for Manual GST Verification

Visit the GST Portal: Go to the official GST portal (www.gst.gov.in).

Navigate to Search Taxpayer: Under the "Services" tab, select "Search Taxpayer" and then "Search by GSTIN/UIN."

Enter GSTIN: Input the GSTIN you wish to verify and complete the captcha.

View Details: The portal will display the registration status, trade name, and other relevant details of the GSTIN.

Using the GST Portal for Verification The GST portal offers a dedicated search facility to verify GSTINs. This feature provides instant access to the registration status and other details of the GSTIN holder, ensuring authenticity.

Third-Party Tools and Software for GST Verification Several third-party tools and software are available for GST verification. These tools offer features such as bulk verification, real-time updates, and integration with ERP systems, making the verification process efficient and error-free.

Streamlined PAN to GSTIN Verification for Businesses 

Instantpay's PAN to GSTIN Verification API offers businesses a seamless solution to confirm the linkage between a customer's PAN (Permanent Account Number) and GSTIN. By integrating this API, companies can enhance the accuracy of their customer data and ensure compliance with GST regulations. This efficient verification process minimises errors and mitigates risks, contributing to a more secure and trustworthy business environment. Leverage Instantpay's advanced verification technology to streamline operations and maintain regulatory compliance with ease.

Conclusion

In conclusion, GST verification is an essential aspect of compliance and financial integrity for businesses operating under the GST regime in India. By ensuring the authenticity of GSTINs, businesses can prevent tax evasion, maintain accurate records, and enhance credibility with stakeholders. The evolution of technology, including AI and machine learning, promises to streamline GST verification processes, making them more efficient and effective.

As businesses continue to navigate the complexities of GST compliance, investing in reliable verification tools and staying abreast of regulatory changes will be key to ensuring smooth operations and mitigating risks. By understanding the nuances of GST verification and implementing best practices, businesses can position themselves for sustainable growth in India's dynamic business environment.

This comprehensive guide has provided insights into the fundamentals of GST, the intricacies of GST verification, common challenges faced, and the future outlook for verification processes. Embracing the principles outlined in this guide will empower businesses to navigate the complexities of GST compliance with confidence and clarity.

[taxguidenilesh]

Salary TDS: बदल गया है सैलरी पर टीडीएस कटौती का तरीका - How to calculate TDS on salary in hindi - Tax Guide

Salary TDS: Employee की सैलरी पर टीडीएस कटौती करने का उत्तरदायित्व employer पर है. Employee की salary करमुक्त सीमा से अधिक है तो वेतन से TDS की कटौती करनी होती है, इसलिए कर्मचारी की पूर्ण वित्त वर्ष के लिए सैलरी से अनुमाणित आय की गणना करनी होती है. FY 2023-2024 से सैलरी पर टीडीएस कटौती का तरीका बदल चूका है, जो सभी वेतनभोगी करदाताओ को पता होना जरुरी है. इस लेख में हम बात करेगे की How to calculate TDS on salary? और क्या है नया तरीका सैलरी से अनुमाणित आय की गणना करने का और उसपर टीडीएस deduction का?

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Budget 2024-25: What are the current income tax slabs?

The income tax slabs differ between the previous and current tax regimes. Additionally, the slab rates in the former tax regime were divided into three divisions.

Indian inhabitants under 60 years old, plus all non-residents

60–80 years: Resident Senior Citizens

Over 80 years: Resident Super Senior Citizens

Budget 2024 Update: Tax Slabs Under the New Regime

The Budget 2024 changed the tax slabs in the New Regime, allowing taxpayers to save an additional Rs. 17,500 in taxes. Furthermore, the standard deduction has been increased to Rs. 75,000 under this regime, while the family pension deduction has been adjusted to Rs. 25,000 from Rs. 15,000. This is applicable for the fiscal year 2024-25

[financesaathi]

Key Budget Highlights 2024: Essential Announcements and Updates

The 2024 Budget presents a comprehensive roadmap towards achieving a 'Viksit Bharat' (Developed India). Here are the key highlights from the budget, focusing on major announcements, sector allocations, and economic projections.

Tax Proposals

The budget introduces several significant changes to the tax regime aimed at reducing the compliance burden and promoting entrepreneurial spirit:

Standard Deduction for salaried employees has been increased from ₹50,000 to ₹75,000.

Simplifying the New Tax Regime: The tax slabs have been revised to make them more straightforward:

₹0-₹3 lakh: Nil

₹3-₹7 lakh: 5%

₹7-₹10 lakh: 10%

₹10-₹12 lakh: 15%

₹12-₹15 lakh: 20%

Above ₹15 lakh: 30%

Deduction on family pension for pensioners increased from ₹15,000 to ₹25,000.

Angel Tax: Abolished for all classes of investors to encourage startup investments.

Corporate Tax: Reduced for foreign companies from 40% to 35%.

Sector Allocations

The budget allocates significant funds to various sectors, with a focus on infrastructure, defense, and social welfare:

Get More Info : Equity Investment Advisory

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Contact Us : Live India Share Market News

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Budget 2024: Are you richer or poorer? 

Does this Budget leave you richer or poorer? The answer depends on your income level, which income tax regime you opt for, and how much and where you have invested. 

For anybody with an annual income of Rs 10 lakh or more, changes made by the Finance Minister Nirmala Sitharaman in tax slabs under the new regime and the enhanced standard deduction mean a net gain of Rs 17,500 annually. Since a reduction in your tax also means health and education cess goes down, you save another Rs 700 (4% of Rs 17,500) to take the total savings to Rs 18,200. 

If your annual income is between Rs 50 lakh and Rs 1 crore, you will save Rs 1,750 (10% of 17,500) on surcharge taking your net savings, including on cess, to Rs 20,020. At incomes of between Rs 1 cr and Rs 2 cr, the 15% surcharge rate means your total savings including surcharge and cess add up to Rs 20,930. Between Rs 2 crore and Rs 5 crore excluding dividends and capital gains, the 25% surcharge means your total savings add up to Rs 22,750. At the same income level including dividends and capital gains, the surcharge is 15%, so you save Rs 20,930. 

The change in standard deduction and tax slabs under the new regime effectively means that if you have an annual income of below Rs 7.75 lakh, your tax liability could be nil. Here’s how that works. Tax is nil till Rs 3 lakh. Between Rs 3 lakh and Rs 7 lakh, the rate is 5%, which means at Rs 7 lakh your liability would be Rs 20,000. But you would be entitled to a Rs 25,000 rebate under Sec 87A, so no tax would actually be due. Add standard deduction of Rs 75,000 and that leaves you free of the taxman till Rs 7.75 lakh. 

If you have opted for the old I-T regime and intend to stay under it, none of these calculations matter, since nothing has changed under that regime. 

You could on the other hand lose out due to the changes in treatment of capital gains. Short-term gains on equities, for instance, will now be charged at 20% instead of 15%. So, if you gain, say, Rs 2 lakh from buying and selling equity within a year, the tax on the gain will now be Rs 40,000 and not Rs 30,000. 

You could also lose big on the sale of property held for over two years. The gains will now be taxed at 12.5% instead of 20%, but you will no longer get an adjustment for inflation over the years. Say, you bought a house for Rs 1 crore five years back and sold it for Rs 1.2 crore now. Under the earlier system the buying price would be adjusted for inflation over five years, which would be around, say, 25%. So the 20% you gained would actually translate into a loss and there would be no capital gains. Now, there will be a Rs 20 lakh gain and hence you’ll have to pay a tax of Rs 2.5 lakh. 

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