FINANCE

An income tax return (ITR) is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about tax refund or tax liability. The deadline for filing Income Tax Return for corporate and other assessees who are to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others, it is 31st July every year as have been prescribed under the Act. However, with the ongoing COVID -19 pandemic a lot of income tax due dates were extended by The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with Notification No. 35 /2020, dated 24-06-2020. In view of the same, the due date of furnishing ITR for FY 2018-19 has been extended till 31st July, 2020 and for FY 2019-20 till 30th November, 2020. The Income Tax Law provides for mandatory filing o...

Everyone wants to save tax and that is why all of us want tax free income. In fact, there is a need to look at various investment options that offer tax free income in India. Tax planning is not a bad thing even the government itself has given many ways to save tax. There are various investments that offer return without any tax, but, in some cases, you can also get tax exemptions under sec 80C of the Income Tax Act, 1961.Therefore, I have compiled a list of investment options for tax free income. Tax Free  Income Tax free income is the income received but not subject to income taxes. Any profit from investments is considered as the earning and the same profit is added to the taxable income. But there are many investments which are not taxable at the time of maturity. The profit from these investments is not added to the taxable income. Income received from these investments is called tax-exempt income 7 Investments for Ta...

The government has introduced two new deductions for the income earned during financial year 2019-20, which individual taxpayers should take note of. These are linked to the purchase of affordable houses and electric vehicles. Here is how these deductions work and the essential conditions to avail these. 1.Home Loan : A new deduction under section 80EEA was introduced in the Finance Bill 2019 to give additional deduction of Rs 1.5 lakh on interest payment for a home loan taken for an affordable house. The housing loan should have been taken only from a financial institution for the purchase of a residential property . To claim the deduction in the current assessment year the home loan should have been sanctioned by the financial institution between April 1, 2019 and March 31, 2020. To be eligible for this deduction, the total value of the house measured as stamp duty value should not exceed Rs 45 lakh. You can claim this deduction only if you do not own any other residential house p...

The ATM is often seen as a distinct area of banking services, one that rarely changes and operates separately from the rest of banking functions like mobile or online. It because of the importance of ATM to the society that we have it at around our neighbourhood or community. Thanks to modern banking and technology, we have the automated teller machine to ease out the stress of cash withdrawal. It is true that banks do warn debit card holders not to share details of PIN with anyone, but most card holders assume that this refers to giving the number to a third party – but between husband and wife? A little random sampling of card holding couples showed that a majority of them do not think sharing PIN details between spouses amounts to infringement of the rule about “not sharing with anyone” A casual act of letting your spouse or a close relative/friend withdraw money from an ATM using your debit card could prove costly. This is what a Benglauru wom...

In India majority of older persons face financial hardship in old age as most of them are not in a position to earn their livelihood. Their savings, if any, are not enough to meet their day to day, particularly the medical expenses. Older persons with good net-worth value are in search of good short-term financial planning to earn a good income from their finance. The Income Tax law provides various benefits to senior citizens in India with the view to mitigate their issues. Who is considered as a Senior Citizen in India? According to the law, a senior citizen is an individual resident between the age group of 60 to 80 years, as on the last day of the previous financial year. Who is considered as a Super Senior Citizen in India? A super senior citizen is an individual resident who is above 80 years, as on the last day of the previous financial year. Just because a senior citizen has been filing an ITR all his life does not necessarily mean that he/she is mandatorily required to file an...

An income tax return (ITR) is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about tax refund or tax liability. The deadline for filing Income Tax Return for corporate and other assessees who are to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others, it is 31st July every year as have been prescribed under the Act. However, with the ongoing COVID -19 pandemic a lot of income tax due dates were extended by The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with Notification No. 35 /2020, dated 24-06-2020. In view of the same, the due date of furnishing ITR for FY 2018-19 has been extended till 31 st  July, 2020 and for FY 2019-20 till 30 th  November, 2020. Individuals or HUF who are...

Notices from the Income Tax Department are very common these days due to their pepped up Tax compliance measures thru computerized/automated rules. While Receiving IT Notice is not a fun for anyone, it may create some panic among the tax payers. The tax payers need to react within the specified time limit to address the queries from IT Department to clear notice and / or Tax dues, if any. below are Top 7 reasons why a Tax Payer may get an Income Tax Notice from the Department Mismatch of Income between form 26AS and Income Tax Return If the Income declared in IT Return does not match with Form 26AS, then the ITD may serve the notice to the tax payer for arithmetical inaccuracies. The Tax Payer should submit either the revised return or submit the response to the query. Error in TDS Amount The TDS claimed in the Tax return should match with the Form 26AS. Otherwise, the ITD may serve the notice on the tax payer to correct the TDS amount. Discrepancy in Tax Returns If the Tax payer have ...