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Tag: CBDT

  • Income Tax Audit Report Deadline Extended For AY 2024-25: Check New Date, Penalty, And How To Submit Online | Personal Finance News

    Income Tax Audit Report Deadline: The Central Board of Direct Taxes (CBDT) has extended the deadline for submitting tax audit reports for the assessment year 2024-25, offering relief to those required to comply with this obligation. The original deadline of September 30, 2024, has now been extended to October 7, 2024.

    This extension comes in response to difficulties faced by taxpayers during electronic submissions under the Income Tax Act, particularly due to problems with the e-filing portal. The new deadline specifically applies to assessees covered under section 139 of the Income Tax Act, 1961. 

    What Is Tax Audit? 

    It is an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint. It makes the process of income computation for filing of return of income easier. 

    Penalty If You Delay In Filing Tax Audit Report 

    If a taxpayer is required to undergo a tax audit but fails to do so, a penalty may be imposed. The penalty would be the lesser of 0.5% of the total sales, turnover, or gross receipts, or Rs 1,50,000. However, if the taxpayer give a reasonable cause for failing to complete the audit, no penalty will be levied under section 271B. 

    Who Needs To Submit A Tax Audit Report?

    -Businesses making more than Rs 1 crore in total sales. 

    -Professionals earning over Rs 50 lakh in a year.

    -Companies, no matter how much they earn.

    Other specific cases are mentioned in tax rules, like those using the presumptive taxation scheme but not meeting certain conditions. These taxpayers must get their accounts checked by a Chartered Accountant, who will prepare an audit report (Form 3CA/3CB and Form 3CD) for them to submit. 

    How To Submit Income Tax Audit Report

    Step 1: Ensure your auditor completes the audit, verifying all details for accuracy and correctness.

    Step 2: Log in to the income tax e-filing portal using your credentials to access your account.

    Step 3: Navigate to the appropriate section for uploading audit reports within the portal.

    Step 4: Select the correct assessment year for which the audit report is being submitted.

    Step 5: Follow the instructions to upload the completed audit report, including Forms 3CA/3CB and 3CD.

    Step 6: After uploading the report, confirm that the submission has been successful and received by the system. 

  • Income Tax Clearance Certificate Mandatory For All Indians? CBDT Clarifies New Rule | Personal Finance News

    The income tax return filing season has now entered the penalty phase where those who failed to file their returns by July 31 are now needed to pay fine to fill their returns. The Income Tax Department said earlier this month that timely compliance by taxpayers and tax professionals has led to a significant increase in the filing of Income-tax Returns (ITRs), setting a new record for ITRs filed by July 31, 2024. The total number of ITRs filed for the Assessment Year (AY) 2024-25 exceeded 7.28 crore, marking a 7.5% increase compared to the 6.77 crore ITRs filed by the same date for AY 2023-24.

    Claims Being Made Online/Offline

    Now, with crores of taxpayers filing their returns, the Income Tax department has made several changes to its website to make the user experience a smooth affair. Amid this, it was claimed that all Indians including those travelling abroad need an Income Tax Clearance Certificate. It was claimed that those opting for foreign travel must possess the Income Tax Clearance Certificate. The tax department has earlier made a statement in this regard but today, the Central Board of Direct Taxes (CBDT) came out with another statement to make the rules clear to everyone and clarify the misinformation being spread online and offline. 

    CBDT Fresh Statement

    “There appears to be misinformation about the said amendment emanating from incorrect interpretation of the amendment. It is being erroneously reported that all Indian citizens must obtain income-tax clearance certificate (ITCC) before leaving the country. This position is factually incorrect,” said the CBDT.

    CBDT issues clarification in respect of Income-tax clearance certificate (ITCC).

    It is being erroneously reported that all Indian citizens must obtain ITCC before leaving the country. This position is factually incorrect.

    Vide Finance (No.2) Act, 2024, Black Money… pic.twitter.com/tadFVQr99F
    — Income Tax India (@IncomeTaxIndia) August 20, 2024

    What Rules Say

    Section 230 (1A) of the Income-tax Act, 1961(the ‘Act’) relates to obtaining of a tax clearance certificate, in certain circumstances, by persons domiciled in India. The said provision, as it stands, came on the statute through the Finance Act, 2003 w.e.f. 1.6.2003. The Finance (No.2) Act, 2024 has made only an amendment in Section 230(1A) of the Act, vide which, reference of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the ‘Black Money Act’) has been inserted in the said Section. This insertion has been made to also cover the liabilities under the Black Money Act in the same manner as the liabilities under the Income-tax Act,1961 and other Acts dealing with direct taxes for the purpose of Section 230(1A) of the Income-tax Act,1961.

    As per section 230 of the Act, every person is not required to obtain a tax clearance certificate. Only certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate, are required to obtain the said certificate. This position has been in the statute since 2003 and remains unchanged even with the amendments vide Finance (No. 2) Act, 2024.

    “The CBDT, vide its Instruction No. 1/2004, dated 05.02.2004, has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances: (a) where the person is involved in serious financial irregularities and his presence is necessary in the investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or, (b) where the person has direct tax arrears exceeding Rs 10 lakh outstanding against him which have not been stayed by any authority,” said the CBDT.

    How To Get Tax Clearance Certificate?

    According to the CBDT, a person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after getting approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of income tax. Those persons mandated to require the certificate can obtain the same from the Income Tax Department by making a written request online or offline.

  • CBDT Eases TDS Rule In Cases Of Death Of Deductees Before Linkage Of Pan-Aadhaar | Personal Finance News

    New Delhi: The Central Board of Direct Taxes (CBDT) has relaxed the provisions of TDS/TCS in the event of the death of deductee/collectee, before the linkage of PAN and Aadhaar, according to an official statement issued on Wednesday.

    “To redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collectee on or before 31.05.2024 and before the option to link PAN and Aadhaar could have been exercised, the Circular provides that there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC of the Act, as the case may be pertaining to the transactions entered into up to March 31, 2024,” an official statement read.

    In view of the genuine difficulties being faced by the taxpayers, the CBDT issued the Circular dated 05.08.2024, and vide the same, the government has relaxed the provisions of TDS/TCS as per the Income-tax Act, 1961, in the event of death of deductee/collectee before linking of PAN and Aadhaar, it added.

    According to the statement, the Circular is in continuation of Circular No. 6 of 2024 issued earlier by the CBDT wherein the date for linking of PAN and Aadhaar was extended up to 31.05.2024 for the taxpayers (for the transactions entered into up to 31.03.2024) to avoid higher TDS/ TCS as per the Act.

    Meanwhile, industry experts have hailed the government’s decision to introduce an amendment to long-term capital gains (LTCG) tax on real estate transactions, saying the move will offer flexibility for sellers.

    Paying heed to the industry’s demand, the government on Tuesday moved an amendment to the Finance Bill 2024, to allow taxpayers to select either a 12.5 per cent long-term capital gains (LTCG) tax rate without indexation or a 20 per cent rate with indexation for property acquired before July 23 this year.

    Experts said this amendment is expected to stimulate investment and sales in the housing market by potentially reducing the tax burden on sellers.

  • CBDT Signs Record 125 Pacts To Ease Tax Payments By Big Multinational Firms

    With this, the total number of APAs since the inception of the APA programme has gone up to 641.