Income Tax Return: Know the major changes in ITR Forms before you start filing return for AY 2022-23

• Apr 18, 2022
  The process of Income Tax Return (ITR) filing for the Assessment Year (AY) 2022-23 has been initiated with timely notification of ITR Forms (from ITR-1 to ITR-6). However, only two ITR Forms – viz. ITR-1 (Sahaj) and ITR-4 (Sugam) – are now available on the Income Tax Portal for filing of the return of income. Once the details of tax deducted at source (TDS) are fully submitted and the forms like Form 16, Form 26AS, etc are made available, other ITR Forms would also be made available for filing.
  

Income Tax

Infosys urged to work on ways to access taxpayers' data accurately

• Apr 20, 2022
  The finance ministry  has asked Infosys to work on ways to extract and access taxpayers’ real-time data faster and accurately as it is crucial for taking decisions on policy changes. While reviewing progress of the income tax portal 2.0, which had faced glitches, the officials also told the Infosys team to increase the scope of pre-filled data in the ITR forms. Senior officials in the ministry held a review meeting last month with the Infosys team and officials of the Central Processing Centre (CPC)

Income Tax

Guidance on updating UDIN for Audit Reports submitted by CA users.

• Apr 21, 2022

  The functionality for updating UDIN against the Audit reports submitted by CA users has been enabled at e-filing
  portal www.incometax.gov.in.
  Please Note:
  1. Update UDIN functionality is applicable only for Forms submitted on or after April 2021.
  2. UDIN for only those Forms can be updated which are accepted by the Assessee.
  3. Following information is correctly filled against the Form as per UDIN generated from ICAI portal

Income Tax

Income tax return forms for FY 2021-22: 9 changes that require additional information from taxpayers

• Apr 22, 2022
  
  

• The income tax department has notified the income tax return (ITR) forms for FY 2021-22 or AY 2022-23. An assessment year (AY) is the year followed by the financial year and AY is the year in which income earned by an individual during the FY is reported to the government and taxes are paid accordingly. For FY2021-22, no major changes have been made in the ITR forms. However, few changes have been made which require the taxpayer to provide additional information while filing ITR. Here is a look at the additional information you are required to provide while filing your income tax return this year.

Income Tax

Now ITR filing mandatory if your TDS, TCS is Rs 25,000 or more in a financial year

• Apr 23, 2022
  
  

• The government has now made it mandatory for an individual to file income tax returns if his/her total TDS/TCS during the financial year is Rs 25,000 or more even if the individual's income is below the basic exemption limit. In case of senior citizens this rule will apply if the individual's aggregate TDS/TCS is Rs 50,000 or more in the year, according to Aakanksha Goel, Direct Tax Partner, T R Chadha & Co LLP. Further, an individual whose deposits in a saving bank account are Rs 50 lakh or more in the fiscal will also have to compulsorily file ITR irrespective of his/her income level.

  The seventh proviso to Section 139 was inserted by the Finance Act, 2019, which provided for certain criteria which mandated the filing of income-tax returns even when the individual's income is less than the basic exemption limit. Such criteria include deposition of Rs one crore or more in a current account, expenditure exceeding Rs 2 lakh for foreign travel, or an amount exceeding Rs 1 lakh for electricity consumption during the year. Now, vide Notification No. 37/2022, CBDT has notified a new Rule 12AB which prescribes additional conditions which mandate the filing of Income-tax returns despite the fact that income is below the basic exemption limit, says Ms Goel. These additional criteria are...

Income Tax

Clarity on tax on ESOPs of ex-employees

• Apr 25, 2022
  
  

• Income-tax laws lay out provisions for taxation of notional income on exercise of employee stock options (ESOPs) by characterising the differential between Fair Market Value (FMV) of shares allotted on exercise and strike price as perquisite. Taxation of such perquisites follows a similar course as for taxation of other salary components. Clarity on taxation front begins to turn obscure when ESOPs are exercised and shares allotted, post cessation of employer-employee relationship. Questions surround the discharge of taxes post termination of the employer-employee relationship.

Income Tax

Govt notifies form for filing updated ITRs

• May 02, 2022
  
  

• The Income Tax department has notified a new form for filing updated I-T returns in which taxpayers will have to give the exact reason for filing it along with the amount of income to be offered to tax. The new form (ITR-U) will be available to taxpayers for filing updated income tax returns for 2019-20 and 2020-21 fiscals.
  Taxpayers filing ITR-U, which can be filed within 2 years of the end of the relevant assessment year, will have to give reasons for updating the income -- return previously not filed or income not reported correctly or wrong heads of income chosen or reduction of carried forward loss. The reasons given in the form also include reduction of unabsorbed depreciation or reduction of tax credit u/s 115JB/115JC or wrong rate of tax or any other reasons given by the taxpayers.

Income Tax

May 03, 2022

Indians earning “interest” on their cryptocurrencies from platforms outside India have come under taxman’s scrutiny, two people familiar with the development said.The tax department is looking to slap additional tax deducted at source (TDS) and equalisation levy on such transactions and interest income generated by Indians, they said.The move comes at a time when decentralised finance (DeFi), which is the financial ecosystem built on blockchain applications and can be used for remitting money or buying insurance or even borrowing money against cryptocurrencies, is fast gaining traction, and many Indians have now taken to earning interest income by depositing cryptocurrencies for a fixed period of time with the platform.

Income Tax