Page 2 - Income Tax Department

Explained: Are details of income-tax return filings confidential?

Experts cited that disclosing an individual's income tax returns constitutes a violation of their fundamental right to privacy as recognized by the Indian Constitution

Over 30,000 TCS workers affected by TDS errors; Tax dept sends notices

The problem is reportedly believed to have stemmed from a software error that resulted in TDS claims not being properly updated on the income-tax portal

India unit actively engaging with tax authorities: British insurer Aviva

Aviva's India business paid about $26 million to entities who purportedly provided marketing and training services, but they did not perform any work

Tax dept issues 10,000 reopening notices to various entities so far

Initial data suggest undisclosed income to the tune of Rs 15,000 cr

How to make tax officials accountable

The proposed simplification of the tax code offers a chance to instil accountability, following the model of the Public Service Guarantee Acts

After $4 bn GST notice to Infosys, other IT cos may also get under scanner

In serving its highest-ever tax demand on Infosys, the government accused India's second-largest tech services company of evading taxes and sought Rs 32,000 crore

Income Tax dept begins scrutiny in reassessment cases for AY-2018-19

The scrutiny might result in a raft of tax notices

More than 50 mn ITRs filed so far, 8% increase over last year: I-T dept

The income tax department on Saturday said more than 5 crore I-T returns have been filed on the e-filing portal, an 8 per cent increase over last year. It further said that Infosys has been instructed to ensure uninterrupted services and the company has assured uninterrupted services during the e-filing peak period. "More than 5 crore ITRs for AY 2024-25 have already been received on the e-filing portal of the Income Tax Department till 26th of July 2024. This is 8 per cent more than the ITRs filed in the preceding year," the Department posted on X. Over 28 lakh ITRs were filed on July 26 itself. It said Infosys is the technology partner of ITD for operating the e-filing portal. In 2023-24 fiscal, over 8.61 crore ITRs were filed.

Maruti Suzuki India gets tax demand of Rs 779.2 cr from I-T authorities

Automaker Maruti Suzuki India Ltd on Friday said it has received a demand of Rs 779.2 crore, including interest from the Income Tax authority. The company has received a final assessment order for the financial year 2019-20 from the Income Tax authority, Maruti Suzuki India Ltd (MSIL) said in a regulatory filing. The order has a total demand, including interest, of Rs 779.2 crore, it said, adding that it has also received a showcause notice for initiation of penalty proceedings with respect to the order. MSIL said it will file an appeal before the Income Tax Appellate Tribunal. There is no impact on financial, operation or other activities of the company due to this order.

First draft of new I-T law to be prepared by tax dept panel: Revenue Secy

The first draft of a new simplified income tax law, as proposed in the Budget, will be prepared by an internal committee of the tax department and will undertake stakeholder consultation before finalising the legislation, Revenue Secretary Sanjay Malhotra said on Thursday. Malhotra said that the exercise is not linked to bringing a new direct taxes code, but a comprehensive review of the income tax law. Finance Minister Nirmala Sitharaman in her Budget speech earlier this week announced that a comprehensive review of the Income-tax Act, 1961 will be completed in six months. "The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers. It will also bring down the demand embroiled in litigation," Sitharaman said. To a question whether the review would mean that the government will come with a direct tax code, Malhotra said "It is not a new direct tax code... It is a comprehensiv

I-T dept says changes in capital gains tax to promote ease of compliance

The income tax department on Wednesday issued a FAQ on changes in the capital gains tax saying the idea behind it was to simplify the tax structure and promote ease of compliance. The holding period for various asset classes for the purpose of short- and long-term capital gains tax has been rationalised. The holding period of all listed assets will be now one year for the purpose of long-term capital gains tax (LTCG). Therefore, for listed units of business trusts (ReITs, InVITs) holding period is reduced from 36 months to 12 months. The holding period of gold, unlisted securities (other than unlisted shares) is also reduced from 36 months to 24 months for calculating LTCG. The holding period of immovable property and unlisted shares remains the same as earlier i.e. 24 months. "Simplification of any tax structure has benefits of ease of compliance viz computation, filing, maintenance of records. This also removes the differential rates for various classes of assets," the income tax

Error-free tax return, luxury concierge firms: Top personal finance stories

This week we report about common mistakes people make in their tax filing and how India's richest use personalised concierge services

SC slams I-T department for 'gross delay of 422 days in filing' plea

"We also find no merit in the Special Leave Petition. In the result, the Special Leave Petition stands dismissed both on the ground of delay as well as on merits," the order said

Our decisions affect nation's economy: New CBDT chief to I-T officials

Newly appointed CBDT chairman Ravi Agrawal has told Income Tax Department officials that the decisions they take have implications on the nation's economy, ease of doing business and international transactions as he asked them to draw a 100-day action plan. Agrawal, 59, took charge as the head of the administrative body of the direct taxes department in the Union finance ministry on Monday. The government issued orders for his appointment last week. The new CBDT chief wrote a two-page letter to the officers and staff of the department that has been accessed by PTI. "Together, we should build a professional Department that is well-versed in the nuances of investigation, sensitive to taxpayer requirements, technology-savvy and is aware of our approach towards taxpayers. "Let us be conscious that the decisions that we take have implications on the nation's economy and ease of doing business, including international transactions and businesses," Agrawal wrote in his message issued on

HDFC Life Insurance gets a tax demand of Rs 1,495 cr from I-T dept

The company had certain marketing and advertising expenses in financials that were considered as admissible expenses incorrectly while calculating the taxable surplus in the policyholder's account

Is the Centre planning to decriminalise minor I-T offences in 100 days?

The industry has long suggested that minor Income Tax offences incur penalties rather than criminal prosecution. This would garner more trust and boost ease of doing business

Link PAN with Aadhaar by May 31 to avoid higher TDS deduction: I-T dept

The income tax department on Tuesday asked taxpayers to link PAN with Aadhaar by May 31 to avoid tax deduction at a higher rate. As per income tax rules, if a Permanent Account Number (PAN) is not linked with biometric Aadhaar, TDS is required to be deducted at double the applicable rate. Last month, the income tax department issued a circular stating that no action will be taken for short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31. "Please link your PAN with Aadhaar before May 31, 2024, if you haven't already, in order to avoid tax deduction at a higher rate," the department posted on X. In a separate post, the I-T department asked reporting entities, including banks, forex dealers, to file SFT by May 31 to avoid penalties. "The deadline to file SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalties by filing accurately and on time," the department said. The reporting entities which are required to file SFT return

I-T dept notifies cost inflation index for FY25 to compute capital gains

The Income Tax Department has notified the cost inflation index for the current fiscal to calculate long-term capital gains arising from the sale of immovable property, securities and jewellery. The cost inflation index (CII) is used by a taxpayer to compute gains arising out of the sale of capital assets after adjusting for inflation. The Cost Inflation Index for FY 2022-23 relevant to AY 2023-24 is 331. AMRG & Associates Senior Partner Rajat Mohan said the CII will help taxpayers to compute long-term capital gains tax, enabling them to remit advance tax on time. "For the last couple of years, the inflation index has been rising faster, which depicts the mounting inflation in the country," Mohan added. AKM Global Head of Tax Markets Yeeshu Sehgal said the CII will be beneficial to taxpayers as assets, which are held for long term, are recorded at purchase cost despite increasing inflation "It is very important to adjust the said purchase cost with the new cost inflation index ..

Data sharing among authorities, taxpayers to improve I-T dept AIS: Deloitte

Deloitte India on Sunday said creating a seamless data exchange and establishing a framework for efficient data sharing among businesses, tax authorities and taxpayers would help improve the AIS functionality of the income tax department. The Annual Information Statement (AIS) is a comprehensive view of financial information for a taxpayer, made available by the income tax department. Information about the taxpayer relating to specified financial transactions such as cash deposit/ withdrawal from bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buyback of shares, cash payment for goods and services etc. To improve the functionality of AIS and the efficiency of tax administration and compliance, Deloitte India's latest paper, "Annual Information Statement: Ushering in a new era of tax administration", recommends creating a seamless data exchange and establishing a framework for ...

Tax dept extends deadline for charitable trusts' registration till June 30

The income tax department on Thursday extended the deadline for charitable and religious trusts to furnish registration application with tax authorities till June 30. The Central Board of Direct Taxes (CBDT) had earlier extended the due date for filing Form 10A, Form 10AB by trusts, institutions and funds multiple times and the last such extension was till September 30, 2023. "Considering the representations received by CBDT requesting for further extension of due date for filing of such forms beyond the last extended date of September 30, 2023, and with a view to avoid genuine hardships to taxpayers, CBDT has extended the due date of filing Form 10A/Form 10AB up to June 30, 2024," the CBDT said in a statement. Form 10A is an application form filed by trusts/institutions who wish to get themselves registered for income tax exemption. Form 10 AB is filed by trusts/institutions to renew their permanent registration. CBDT further clarified that if any such existing trust, institution