FINANCE

When filing Income Tax Return (for FY 2020-21), you have to calculate tax by adding up income from all sources and subtracting deductions under Section 80C/ 80D/ standard deduction, etc. I am a first-time taxpayer with annual income of Rs 8 lakh. My employer deducts TDS of Rs 4,000 every month. How do I claim benefits under Section 80C for PPF, NPS etc? —Deepak Kumar TDS is a ‘pay as you earn’ measure and is only provisional tax. The final tax liability is determined at the end of the financial year. When filing Income Tax Return (for FY 2020-21), you have to calculate tax by adding up income from all sources and subtracting deductions under Section 80C/ 80D/ standard deduction, etc. The TDS deducted by your employer (as reflected in Form 26AS) can then be claimed as credit in the ITR form. Any excess of TDS paid over the final tax liability shall be refunded. However, if you furnish the details of any tax-saving investments/ expenses made in Form 12BB, to your employer, at the beginni...

This leaves taxpayers in a fix - GST notice demands money in 16 decimal points, even though bank systems do not recognise more than 2 decimal points Faced with a revenue crisis of sorts, the government seems to have become penny-wise, especially when it comes to GST collection. The government is sending notices to taxpayers for dues as low as a few paise.However, that puts taxpayers in a jam. The government recently clarified that those filing returns after the due dates should also be paying interest on the taxes due and ordered recovery of Rs 46,000 crore as interest from those who filed their returns after the due dates. Now the taxpayers have been receiving notices asking for payment of interests, which in some cases could be as low as Rs 2 or Rs 6. In one such notice sent to a brokerage firm, the notice reads: "Records indicate that you have filed your GSTR-3B return for the period 2019-20 after due dates, in which you have not calculated and paid your interest liability unde...

Dear Sir/Madam, Late Fee for TDS Payment for March, April, May 2020 is a little different than usual as Finance Minister announced that Interest to be calculated at 9% instead of Regular 18%. This can be well achieved using Excel Formula. But many of customers found it little tricky, we have developed a simple calculation page, where you can Find the Exact Late Payment Calculation with month on month calculation details. Please visit https://officeanywhere.io/incometax/tds_interest_calculator, in case if you want to find TDS Late Payment. Also, don’t hesitate to share links with your contacts in case if you feel, it is helpful.

Employer's contribution for provident fund, NPS and superannuation worth more than 7.5 lakh a year will be taxable The new income tax rules affects only those in a high salary bracket Those with high salaries might soon have to shell out income tax on employers contribution under employees' provident fund (EPF), National Pension System (NPS) and superannuation fund. In the  Union Budget 2020 , finance minister Nirmala Sitharaman has introduced a cumulative upper ceiling of  ₹ 7.5 lakh for the three investments which give tax benefits. With effect from 1 April, 2021, the combined upper limit of  ₹ 7.5 lakh in respect of employer's contribution in a year to NPS, superannuation fund and recognised  provident fund  and any excess contribution will be taxable. The Budget has also proposed that even interest and dividend earned during the previous year would also be taxable. Interest is treated as perquisite to the extent it relates to the employer’s contributio...

The new tax rates announced in Budget 2020 will be optional The maximum gain is ₹78,000 under the new income tax regime "In order to provide significant relief to the individual taxpayers and to simplify the Income-tax law, I propose to bring a new and simplified personal income tax regime wherein income tax rates will be significantly reduced for the individual taxpayers who forgo certain deductions and exemptions," Finance Minister Nirmala Sitharaman said in her Budget 2020 speech as she proposed new income tax rates and slabs for those forgoing exemptions and deductions The new tax rates will be optional. Instead of actually simplifying, tax experts say that the dual tax rates might create confusion for individuals since they will have to calculate tax under both the regimes to see which is more beneficial. Further, an individual will have an option to switch between the two rates on a year to year basis. But those with business income can only chose to switch once. Th...

Tax experts say that individuals will have to check if they will have greater benefit under the new tax rates Finance Minister Nirmala Sitharaman today announced new income tax rates and slabs But these new tax rates are optional and will be applicable for those foregoing exemptions and deductions Budget 2020, Finance Minister  Nirmala Sitharaman  announced new income tax rates and slabs for those earning up to  ₹ 15 lakh a year. These new tax rates are optional and will be applicable for those foregoing exemptions and deductions. The finance minister also proposed to remove dividend distribution tax on companies. These new income tax related proposals will come into effect from financial year 2020-21. 1) It is to be noted that the new income tax rates and slabs will be applicable for those who forego exemptions and deductions. The deductions include Standard deduction, Section 80C, Section 80D, LTA, HRA, interest on housing loan on self-occupied property among oth...

The Income Tax Act was changed last year to the benefit of the salariat and other steady earners. The past year was also marked as a period when income tax returns peaked. Though the economic engine has been sputtering, do not overlook the changes to the way you are supposed to pay taxes. 1. No tax up to Rs 5 lakh Income tax assessees with less than Rs 5 lakh of taxable income have been exempted from tax liabilities. However, this is only applicable to those who file income tax returns. According to the Income Tax Act, those who earn more than the basic exemptions are bound to pay taxes. In case the income exceeds Rs 5 lakh, the assessee has to pay tax. 2. Exemption for two houses The taxpayer can now claim exemptions on two houses, instead of the previous one, as long-term capital. There are some restrictions though. The capital that can be raised by selling the houses cannot exceed Rs 2 crore if the taxpayer were to avail of this benefit. One taxpayer can only take advantag...