Can you claim the new tax regime benefit while filing belated income tax returns?

• Sep 16, 2022

  
  

  Planned your taxes according to the new tax regime but missed filing your income tax returns (ITR) before the July 31, 2022 deadline, then there is some bad news. As per current income tax laws, you cannot claim the benefit of the new tax regime while filing belated ITR. Not only, you will have to pay taxes according to the old tax regime while filing belated ITR, but there may be chances of a higher income tax liability as well.What income tax laws say about filing ITR with new income tax regime

  Once the deadline to file ITR is missed, then the individual can file a belated ITR using only the old income tax regime. The Finance Bill, 2020, introduced the new income tax regime and it came into effect from FY 2020-21 (April 1, 2020). The Finance Bill makes it clear that in order to avail benefits under the new regime, an individual has to file their ITR within the due date (usually July 31 unless extended by the government) under Section 139(1) of the Income-tax Act,1961. If the income tax returns are filed belatedly, the taxpayer will not be able to claim the benefit of the lower tax rates, as provided for in the new tax regime and the existing, old income tax rates would apply.

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Income Tax

Q2 advance tax collections up 22%: Report

• 17 SEPTEMBER,2022

  The Centre’s advance direct tax collections grew by about 22% on year to Rs 1.81 trillion in the second quarter of the current financial year, CNBC TV18 reported.A senior revenue department official, however, told FE that the data was ‘premature’ as it was still being tallied. The due date for advance tax for September quarter was 15th of the month.The government’s advance direct tax collections from companies, LLPs and individuals in the first quarter (June quarter) was up 33% on year at about Rs 1.01 trillion.The Centre’s direct tax collections (post-refunds) grew by a robust 30% on year till September 8 of the current financial year even as refunds rose sharply by 65% during the period.

General

Income Tax department relaxes norms for compounding of offence

• Sep 19, 2022
  
  

• To facilitate Ease of Doing Business and decriminalisation of offences, the Income Tax department today said it has relaxed several norm related to compounding of offences under the I-T Act. The I-T department said it has allowed compounding in cases where the applicant has been sentenced to up to two years of imprisonment. Compounding allows the person to accept his offence and pay specified charges to avoid prosecution.Issuing the revised guidelines for Compounding of offences under the Income-tax Act, 1961, the Central Board of Direct Taxes (CBDT) said: "The scope of eligibility for compounding of cases has been relaxed whereby case of an applicant who has been convicted with imprisonment for less than 2 years being previously non-compoundable, has now been made compoundable.

Income Tax

Direct tax kitty grows 30% in FY23 to Rs 8.36 lakh cr on higher advance tax mop-up

• Sep 19, 2022
  
  

• Gross direct tax collections grew 30 per cent to Rs 8.36 lakh crore till September 17 of current fiscal year on increased advance tax mop-up, the finance ministry said on Sunday.“The gross collection of direct taxes (before adjusting for refunds) for FY 2022-23 stands at Rs 8,36,225 crore compared to Rs 6,42,287 crore in the corresponding period of preceding financial year i.e. 2021-22, registering a growth of 30 per cent over collections of 2021-22,” the ministry said in a statement.

General

Tax collections to continue rising trend in coming months: Experts

Sep 26, 2022

The trend of increase in income tax collection is expected to continue in the coming months on increased compliance, higher corporate profitability and increased trade in festive season, experts said.The gross direct tax collection grew 30 per cent to Rs 8.36 lakh crore in the April to mid-September period of the current fiscal on increased corporate tax and personal income tax (PIT) mop up due to increased economic activity.

General

42% small businesses, startups finding it difficult to file tax return, audit report by Sep 30 deadline: Survey

Sep 27, 2022

Ease of doing business for MSMEs: A pan India survey of small businesses and startups by community social media platform LocalCircles on Monday said 42 per cent of 5,788 respondents are finding it difficult to meet September 30 deadline to file their tax return and audit report. 16 per cent of respondents said “it will be a significant effort” filing by this month-end while 26 per cent admitted it would be “impossible to file” by September 30 and hence requested an extension by 30-45 days. In contrast, 49 per cent of respondents said they have already filed their tax returns and audit reports.

Audits

Net direct tax mop up rises 23% to Rs 7.04 lakh crore so far this fiscal

• Sep 28, 2022
  The net direct tax collection has increased 23 per cent to Rs 7.04 lakh crore so far this fiscal, the income tax department said on Tuesday.Central Board of Direct Taxes (CBDT) Chairman Nitin Gupta said the income and corporate tax collections were at a record high of Rs 14.09 lakh crore in 2021-22.“The momentum of the last fiscal continues in this fiscal with net direct tax collection of Rs 7.04 lakh crore so far, which is a growth of 23 per cent over the same period last fiscal,” Gupta said.At the Finance Minister’s Award ceremony for CBDT officers, Gupta said the I-T e-filing portal has stabilised and it has facilitated 5.83 crore tax return filing as of July 31. A record 72 lakh returns were filed on the portal on a single day.July 31 was the last date for filing ITRs for salaried individuals for income earned in the 2021-22 fiscal.

Income Tax

Finance minister Nirmala Sitharaman asks I-T department to quickly process ITRs, refunds

• Sep 28, 2022
  
  

• Finance minister Nirmala Sitharaman on Tuesday asked the Income-Tax department to quickly process tax returns, issue refunds and redress grievances.Sitharaman said pending cases need to be resolved expeditiously and that the department could run a campaign for this on the lines of public sector banks
  Despite Covid-19 related challenges,she said direct tax collections had sustained the momentum and use of technology had closed the gap between direct tax and indirect tax collections.
  She outlined three 'R's that the department should follow -- quicker processing of returns, speedier refunds and redressal of grievances. "What is well within you and never going to change and never needs anything more are these three 'R's," Sitharaman said at an event of the CBDT.

Income Tax