Can you change income tax regimes while filing revised ITR?

• Dec 06, 2022 
  
  

• It is possible that after filing income tax return (ITR), you might realise that you have forgotten to report certain incomes or that the tax payable in the other tax regime is lower than what has been paid. The question then is can you switch your income tax regime (old to new or vice versa) while filing a revised income tax return? ET Wealth spoke to various tax experts and chartered accountants to shed more light on this issue. Read it, but also remember that the last date of filing revised ITRs is December 31, 2022, for FY 2021-22 (AY 2022-23). Do note that if you are filing or have filed belated income tax return, then you are not eligible to opt for new income tax regime as per income tax laws. Hence, if you revise your belated ITR, then also you cannot opt for new tax regime.

Income Tax

Social security schemes in India and way forward for Government

8th December,2022

In the upcoming budget i.e. 2023-24, Salary Person have more expectation for taxes relief. It's really a major concern for salary Person. In India personal income tax... started from 5%  and goes about 42.74% (37% surcharge on net income >5 Crore along with surcharge and cess 4%. If we are comparing to other countries taxes then it feels like our India personal tax rate are very high...
Like: Personal tax rate of Hong Kong 15%, Sri Lanka 18%, Singapore 22%.
Revision in the Tax Slabs Rates:-
Now salaried person have the option to choose and Pay taxes either old tax regime or new tax regime. The old tax regime that comprises exemption and standard deduction but the new concessional tax system missing exemptions or standard deductions. These two system creates various issues and confusion among salary person.In the opinion of tax expert,  old taxation system is much better than the new one. The new tax regime requires revamping.
For example:- 
“Somebody with an income of Rs 7 lakh in the old regime does not have to pay any taxes, but in the new regime, you have to pay taxes once you cross the threshold of Rs 2.5 lakh,” So the latest tax regime should raising the limit for paying the taxes to Rs 7 lakh.
Providing Exemptions Would be Effective:-

As per our Indian personal tax system...a person or the businesses whose yearly income is Rs. 5 cr and exceeds then They should be liable to pay taxes at the highest rate i.e. 42.74%.   But if we are comparing with the overseas countries such as USA, Canada and other.. they encourage to save their taxes by investing in social security schemes such as medical and pension for every citizen. This system is missing in India. Tax experts mentioned that “Long life savings by contribution to Public Provident Fund and National Savings Certificates etc are the financial safety for the citizens. So, if the exemptions are withdrawn like in the new tax regime, then people will be left without social security. If there are no tax exemptions for life insurance policies then people will not buy and they won’t have security in case they land up in some difficulty,”
 Requirement for the Tax Simplification:
The taxation procedure would require to be simplified.  As the process of taxation becomes simpler,  tax compliance shall get increase. As per the confederation of Indian Industries (CII), confusion has been made by different TDS rates for the assesses which enhances the compliance load and various issues.
For example:-  The same would be hard to differentiate between fees for technical services 2% and the fees for professional services 10%.
  Way Forward:
 1. Hong Kong (15%), Sri Lanka(18%), Bangladesh (25%), and Singapore (22%) has lower personal tax rates compared to India.
2. The effective tax rate on a person who makes more than Rs 5 cr in India would be 42.74%.
3. If the exemptions are withdrawn like in the new tax regime, then people will be left without social security.
4. Old taxation system is much better than the new one. The new tax regime requires revamping.
5. There would be requirements for making the taxation process easier.

Income Tax

Taxman Wants More Data to Drive Voluntary Compliance

• Dec 06, 2022                                                                                                                                         

• The tax compliance requirements for companies are changing as the tax department wants more information. It will, therefore, be the responsibility of companies to provide all necessary data including detailed information on partners and suppliers. In such a scenario, reporting will increasingly be driven by technology. “The tax compliance processes have to be embedded in the internal business processes for each taxpayer.

Income Tax

I-T dept committees on high-pitched assessments to submit report in about 2 months: CBDT

• Dec 06, 2022

• New Delhi,
  The 'local committees' formed to deal with taxpayers' grievances arising out of 'high-pitched' scrutiny assessments shall submit their report within about two months, the CBDT has reiterated in a public communication. A set of "revised" guidelines were issued by the Board in this context in April and these were applicable for cases being scrutinised under both the faceless and non-faceless assessment system. The local committees have been created in each region of the income tax department, that are headed by a principal chief commissioner rank officer (Pr. CCIT), and will comprise three officials of the I-T department in the rank of principal commissioner or commissioner.

Income Tax

Tax-authorities tighten noose around under-invoicing of Chinese imports

• Dec 06, 2022
  
  
  Tax authorities in India are investigating under-invoicing of goods imported from China after the trade data highlighted a glaring difference of around $12 billion in the data sourced from China and India, the Economic Times reported. On comparison, the trade data from the two countries show invoiced imports into the country are far less than exports from China to India. Taking cognizance of the same, the customs authorities have issued tax-evasion notices to 32 importers since September.
  
  
  Tax authorities suspect a tax evasion of more than Rs 16,000 crore through under-invoicing by businesses from April 2019 to December 2020. And more such notices are likely to be issued by the tax authorities in the coming days, the report said.

International Tax

Direct tax mop-up to exceed budget target by 25-30 pc: CBDT chief

• Dec 06, 2022                                                                                                                                                    

• The direct tax collection in the current fiscal is likely to exceed the budget target of Rs 14.20 lakh crore by about 30 per cent, a senior official said. Central Board of Direct Taxes (CBDT) Chairman Nitin Gupta also said that the Budget for next fiscal could bring about some tweaks in the TDS provision for online gaming to check tax evasion.

Income Tax

Tweaking of TDS provisions for online gaming likely to check tax evasion

• 6Th DECEMBER,2022
  The government is considering tightening the Tax Deducted at Source (TDS) framework for the online gaming sector to ensure that a better audit trail can be established for the money spent and earned from such activities and check evasion. Also, given the buoyancy in tax collections, the budget target for the next fiscal (2023-24) is likely to be higher, Central Board of Direct Taxes (CBDT) chairman Nitin Gupta said.

Income Tax

You can get personlised support from income tax helpdesk: Here's how

• Dec 06, 2022                                                                                                                                                                                                                                                                                To provide real-time and personalised support, income tax department offers an option of Co-browsing, which is also referred to as collaborative browsing. This enables helpdesk representatives to work alongside the taxpayer's browser in real-time and agents can monitor the taxpayer's browser screen and lead them interactively. Here is a quick look at what is co browsing and how it helps tax payers, according to the income tax department’s website.

Income Tax