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Tag: income tax return

  • 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.

  • ITR Refund: Who Will Receive Faster Refund Among ITR-1, ITR-2, and ITR-3? How To Check ITR Refund Status |

    New Delhi: Waiting for your Income Tax Return (ITR) refund? Good news- most of the taxpayers who have submitted their income tax returns (ITR) for the fiscal year 2023-24 (assessment year 2024-25) are likely to get the refunds as soon as possible.

    Many individuals have filed the ITR via three forms which include ITR-1, ITR-2 or ITR-3 for the fiscal year 2023-2024 but the question is who will get the refund faster?

    This article delves into the criteria determining quicker refunds, highlighting who stands to benefit from the expedited process. It is important to note that your tax refund can only be issued once the Income Tax Department processes your verified ITR.

    What is ITR-1, ITR-2, and ITR-3?

    ITR-1 Form: The ITR-1 form is for Ordinary Resident (ROR) individuals with a total income of up to Rs 50 lakh. This includes income from salary, income from single house property, and other sources like bank interest, dividends, and agricultural income up to Rs 5,000.

    ITR-2 Form: This form applies to individuals or Hindu Undivided Families (HUFs) who do not earn income from “Profits and Gains of Business or Profession” and are ineligible to file ITR-1.

    ITR-3 Form: The ITR-3 form is intended for individuals and HUFs engaged in business or professional activities, where maintaining detailed books of accounts is required. This includes professionals such as chartered accountants, doctors, lawyers, and engineers whose income is derived from actual profits.

    Notably, ITR-1 refund claims are processed more swiftly than those for ITR-2 and ITR-3, thanks to the straightforward income details in ITR-1 compared to the more complex information required in the other forms.

    How To Check Refund Status From Income Tax e-Filing Portal

    Step 1: Open the official income tax e-filing website.

    Step 2: Log in using your PAN details.

    Step 3: After logging in, navigate to the ‘My Account’ section.

    Step 4: Within this section, find and click on the “Refund/Demand Status” button.

    Step 5: View the status of your refund or demand as displayed on the screen.

  • ITR Filing 2024: Easily Correct Mistakes With Discard ITR Option – Step-by-Step Guide Inside | Personal Finance News

    ITR Filing 2024: It’s quite common to miss some details or make a mistake when submitting your income tax return (ITR). Even with the best efforts to get everything right, errors can still slip through. But don’t worry—there are ways to fix these mistakes and ensure your tax return is accurate.

    Before the financial year 2022-23 (assessment year 2023-24) if you made a mistake on your income tax return then there was no way to correct it directly. You had to verify the ITR with the incorrect information and then file a revised ITR. However, now there’s a much easier solution! If you make a mistake, you can simply use the Discard ITR option to fix it quickly and easily. 

    How can you use the ‘Discard ITR’ option in the ITR e-filing portal?

    The ‘Discard ITR’ option is a handy feature provided by the Income Tax Department. It allows you to discard (delete) your filled-up ITR form and start over. Think of it like typing a draft email and then deleting all the content before sending it. You can write fresh content and send the email. This way, if you make a mistake in your ITR form, you can easily start again without any hassle.

    How to use the ‘Discard ITR’ option on the e-filing portal:

    Here’s a simple step-by-step guide:

    – Visit the Portal: Go to the income tax e-filing portal at https://www.incometax.gov.in/iec/foportal/.

    – Log In: Log in using your credentials.

    – Access ‘e-Verify Return’: Navigate to the ‘e-File’ tab and select ‘e-Verify Return’ under ‘Income Tax Returns.’

    – Find Your Unverified ITR: A new page will open, showing your unverified ITR.

    – Discard the ITR: You will see two options: ‘e-Verify’ and ‘Discard.’ Click on ‘Discard’ to delete your filled-up unverified ITR.

    Why is it important to avoid using the ‘Discard’ ITR option after July 31?

    It’s important to be cautious with the ‘Discard’ option after July 31, 2024. If you discard your ITR after this date, it might be considered that you missed the filing deadline for the financial year 2023-24. After July 31, you will only be able to file a belated ITR which may come with a penalty. So, it’s best to finalise your ITR before the deadline to avoid extra charges and complications.

  • ITR Filing 2024: You can now file ITR using WhatsApp—Step-by-Step Guide Inside | Personal Finance News

    ITR Filing 2024: Filing your Income Tax Return (ITR) has become easier now. ClearTax, the online tax-filing platform has introduced a new service that allows you to file your ITR using your WhatsApp account. This innovative WhatsApp-based ITR filing solution makes the process more convenient and user-friendly for everyone.

    The service is designed to make tax filing simpler, particularly for over 2 crore gig workers in India who frequently miss out on refunds because the process can be quite complicated. Presently, the service supports ITR 1 and ITR 4 forms which cover most low-income taxpayers. It uses artificial intelligence to offer a smooth, chat-based experience through WhatsApp which makes it easy for a broad range of users to access and use.

    Top Features of the WhatsApp ITR Filing Service:

    – Form Support: Handles ITR 1 and ITR 4 forms.

    – Language Options: Available in 10 languages, including English, Hindi, and Kannada, for wider accessibility.

    – Secure Payments: Complete payments safely within the WhatsApp interface.

    – Convenient Data Submission: Submit information using images, audio, or text for a smoother process.

    – AI Assistance: Get real-time help from an advanced AI bot that guides you through each step.

    – Optimal Tax Savings: AI chooses the best tax regime for you to maximise your potential savings.

    “Our WhatsApp solution addresses a critical gap in tax compliance that has long plagued India’s workforce. We’re not just simplifying tax filing, we’re democratizing financial empowerment. We are making Bharat Aatmanirbhar and financially self reliant. By bringing this service to WhatsApp, we’re meeting people where they are, eliminating technological barriers, and ensuring that millions of hardworking Indians can claim their rightful refunds with just a few taps on their phones.” Archit Gupta, founder and CEO of ClearTax, said.//

    “This isn’t just about convenience – it’s about financial justice and inclusion. We’re proud to be at the forefront of this transformative approach to tax filing, one that has the potential to put money back into the pockets of those who need it most,” he further added.

    How to File Your ITR Using This Service

    – Start Chatting: Save the ClearTax WhatsApp number and send “Hi” to begin.

    – Select Language: Choose from 10 available languages like English, Hindi, and Kannada.

    – Enter Details: Provide your PAN, Aadhaar, and bank account information when asked.

    – Upload Documents: Send your documents via images, audio, or text messages.

    – Follow AI Guidance: Use the AI bot to guide you through completing your ITR 1 or ITR 4 forms.

    – Review Information: Check the pre-filled form, make any edits needed, and confirm your details.

    – Make Payment: Complete your payment securely through WhatsApp.

    – Get Confirmation: Receive a confirmation message with your acknowledgment number after submission.//

  • Source of revenue tax raid: Source of revenue tax raid lasted for 2 days in Metro Sanatorium, staff took vital paperwork alongside

    Noida: The staff of Source of revenue Tax Division investigated for 48 hours at Metro Sanatorium situated in Sector-11 and 12 of Noida. The Source of revenue Tax Division officers have seized suspicious pieces along side a number of paperwork. The Source of revenue Tax Division staff raided the well-known Metro Sanatorium in Noida on Wednesday. The Source of revenue Tax Division staff raided for 2 consecutive days. After raiding for roughly 48 hours, the Source of revenue Tax Division staff got here out of the health center premises at round 3 pm on Thursday. The Source of revenue Tax Division officers have now not but given any rationalization in regards to the raid.

    In step with assets, this motion was once taken once you have inputs of accounted money receipt, unaccounted funding and manipulation within the account ebook at Metro Sanatorium. Throughout the raid, the Source of revenue Tax Division has confiscated many vital paperwork associated with the health center control after inspecting a large number of paperwork. In conjunction with this, about 20 puts of Dr Lal, the landlord of Metro Sanatorium, had been additionally raided.

    Give an explanation for that all through the final 5 years of the health center control, tax evasion of crores of rupees has been detected all through the submitting of source of revenue tax returns. In view of this, in depth raids are being performed at the entire premises of the health center workforce.
    Enter- Manish Singh