DTAA amendment by Australia likely to come into force from April 1

• Nov 24, 2022
  
  

• • The double tax avoidance agreement (DTAA) ratified by Australian Parliament, along with its trade deal with India, may come into force on April 1 next year, the finance ministry informed the commerce ministry. The DTAA is expected to eventually lead up to $1 billion in savings for Indian information technology (IT) companies operating in Australia, from the present-day $200 million.“The Australian government has communicated to us that the DTAA will likely come into effect on April 1, 2023. Our finance ministry has also agreed to it since our fiscal year begins from that date,” said a government official.

International Tax

PAN-Aadhaar linking deadline: 7 important FAQs you should know

Mar 29, 2022 

The last date to link one's PAN with Aadhaar is March 31, 2022. If both these documents are not linked by March 31, then there will be numerous consequences faced by an individual. For instance, if the PAN is not linked with Aadhaar by March 31, then firstly your PAN will become inoperative. Once the PAN becomes inoperative, then you won't be able to conduct various financial transactions such as opening of bank account, investing in shares, mutual funds etc. or wherever quoting of PAN is mandatory such as lower deduction of tax from salary, interest income etc.

General

Non-linking of PAN with Aadhaar by March 31 to attract penalty of Rs 500-1,000

• Mar 31, 2022
• The Income Tax department said that taxpayers who had not yet linked their Aadhaar cards with their Permanent Account Number (PAN) and did not do so by March 31 would be required to pay a penalty between Rs 500 and Rs 1,000. The Central Board of Direct Taxes said a late fee of Rs 500 will be levied in cases where the Aadhar is linked within the next three months or by June 30, 2022. A fine of Rs 1,000 will be levied thereafter.
  

Income Tax

New income tax rule changes from 1 April 2022. Details here

• Mar 31, 2022
  
  

• There are many changes in the income tax rules effective from the next financial year. Income tax on crypto assets, filing of updated returns, new tax rules on EPF interest, and tax relief on Covid-19 treatment are some of the major changes effective from 1 April 2022. The crypto asset tax regime in India will gradually roll out in the financial year starting April 1. Provisions on the 30% tax will be effective at the start of the fiscal year while those related to the 1% TDS will come into effect from July 1, 2022. The 2022-23 Budget has brought in clarity concerning the levy of income tax on crypto assets. The threshold limit for TDS would be ?50,000 a year for specified persons, which includes individuals/HUFs who are required to get their accounts audited under the I-T Act.

Income Tax

Govt notifies ITR forms for 2021-22; seeks details on overseas pension a/c

• Apr 02, 2022

• The finance ministry has notified new income tax return forms which, among other things, will seek additional information with regard to overseas retirement benefits and interest accrual on provident fund deposits exceeding Rs 2.5 lakh a year. The Central Board of Direct Taxes (CBDT) has notified the forms ITR-1 to ITR-5. The ITR forms for corporates and trusts (ITR 6 and 7) will be notified later. ITR-1 form, to be filled by individuals having income up to Rs 50 lakh, has been kept broadly the same as last year. However, the assessee will have to provide information about income from overseas retirement fund while calculating net salary.

Income Tax

Indians with hidden income in US on I-T radar: Report

• Apr 04, 2022

• Indians with hidden income in the United States (US) may face legal action under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in the Financial Year '23. According to the internal action plan of the Central Board of Direct Taxes (CBDT) for FY23, persons named in global leaks may be searched, shown-caused, and prosecuted, according to a report in the Business Standard. The publication has also reported that tax officials across the country have been instructed to investigate any cases discovered during the verification of data received on or after April 1, 2022, under the Foreign Account Tax Compliance Act (FATCA), Automotive Exchange of Information (AEOI), and Common Reporting Standard (CRS).

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International Tax

ITR filing: Forms for FY 2021-22 notified. Check which one to file

• Apr 05, 2022
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• In a circular dated March 30, 2022, the Central Board of Direct Taxes (CBDT) notified the income tax return (ITR) forms for FY 2021-22. Just as the government kept the income tax slabs unchanged for this financial year, the return forms have also been kept largely unchanged.

  ITR-1 can be filed by individuals having total income up to Rs 50 lakh, just like last year. The source of such income for such individuals can include salaries, income from one house property and other sources such as interest income, dividend etc. and an agricultural income up to Rs 5,000.

  Individuals opting for this form will have to give their salary break up like salary, perquisite, allowances exempt under section 10 (such as HRA, LTA etc. in case they have opted for old tax regime) etc.

  You can save 100% tax on income upto Rs 10 lakh per annum; here’s how

  Those not eligible to fill up this form will include a person who is a director of a company or has invested in unlisted equity shares or income tax on ESOPs is deferred or where TDS has been deducted under section 194N of the Income-tax Act, 1961.

  Meanwhile, people who get pension from accounts held in foreign countries and filing ITR1 in India will be needed to fill in additional details. These include details of the retirement benefit account maintained in a notified country under section 89A and retirement account maintained with non-notified countries.

Income Tax

CBDT notifies online tax dispute resolution scheme

• Apr 07, 2022
  
  

• The Central Board of Direct Taxes (CBDT) on Wednesday notified the e-Dispute Resolution Scheme, 2022, to settle tax disputes involving small taxpayers. Taxpayers having total returned income up to ?50 lakh having income tax disputes not exceeding ?10 lakh will be able to avail the scheme. Taxpayers will not be required to appear before tax officials either personally or through an authorised representative in connection with any proceedings under this scheme and the entire communication will be in electronic mode.
  The CBDT also notified constitution of a dispute resolution committee, which shall consist of three members, including two retired officers from the Indian Revenue Service who have held the post of commissioner of income tax or higher post for five years and one serving officer not below the rank of principal commissioner of income-tax. Members will have a tenure of three years.

Income Tax