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Wealth management during coronavirus

Can I claim HRA tax exemption for rent paid to spouse while filing ITR?

You can certainly claim the rent paid to your wife as an expense for the part of the premises used for your business or profession but generally, it is more onerous to prove a commercial relationship between husband and wife.

Self assessment tax liability for FY19-20 over Rs 1 lakh? Pay by July 31 to avoid penal interest

According to a press release issued by the Central Board of Direct Taxes on June 24, 2020, no extension has been granted to individuals having self-assessment tax liability of over Rs 1 lakh for FY 2019-20. Further, delayed tax-payment would attract penal interest.

Deadline for furnishing TDS/TCS statements extended till July 31

"Understanding the current times that we are in, we have further extended deadlines. Now, furnishing of TDS/TCS statements for FY 19-20 extended to July 31, 2020," said the Income Tax Department.

Tax optimiser: Finance professional Aikat can save tax by Rs 25,000 via NPS, perks

ET Wealth tells readers how they can optimise their tax by rejigging their income and investments.

Government further extends tax compliance deadlines. Check the new dates here

The extension will reduce hardship of taxpayers on one hand and will also give some more breathing time to tax officers, said experts, amid challenges faced in meeting the statutory and regulatory compliance requirements due to the outbreak of Covid-19.

PAN-Aadhaar, Tax saving, Form 16, belated ITR filing deadlines extended again

The extension has been done to provide further relief to taxpaying individuals.

Form 26AS: 4 new things that your tax passbook will now show

The government via a notification dated May 28, 2020, has made changes to the Form 26AS. These changes have come into effect from June 1, 2020. Here are the four new changes in Form 26AS that will appear from now onwards.

After leaving job, how long will my EPF account earn interest? Will interest stay tax-free?

Despite the tax on the interest, EPF continues to have the highest returns among small saving schemes. So it makes sense to make small periodic withdrawals to ensure that the account does not become inoperative.

ITR filing: How to pre-validate your bank account

It is important to pre-validate the desired bank account of the taxpayer on the income tax portal to ensure a smooth refund process. The other advantage is that the income tax returns can be e-verified (EVC) using the prevalidated bank account.

Opted for moratorium on home loan EMIs? Here's what will happen to your tax-savings

Opted for moratorium on home loan EMIs? Here's what will happen to your tax-savings

Current income tax laws allow tax benefits on both principal repayment and interest paid on home loans.

Cost inflation index for FY 2020-21 used for LTCG calculation notified by finance ministry

The Cost Inflation Index (CII) for FY 2020-21 will come into force with effect from April 1, 2021, and will accordingly apply to the assessment year 2021-22 and subsequent years. Take a look at all the CII numbers since 2001-02 till 2020-21.

How SBI savings account holders can submit Form 15G, Form 15H online

Step-by-step guide on submitting Form 15G/Form 15G by a State Bank of India (SBI) savings bank account holder through the Net banking route.

I left my job and work as a consultant now. If I withdraw my PF, will it be taxable?

"The law states that any amount withdrawn from a recognised provident fund is exempt in the hands of the employee if the employee renders continuous service for 5 years or more."

ITR-1 e-form for FY 2019-20 now available on income tax department website

The latest ITR-1 has introduced a new schedule 'Schedule DI' to allow an individual to claim the deductions from the gross total income for the tax-saving investments made between April 1, 2020, and June 30, 2020.

Income tax return forms notified: You can claim deductions till June 30

Income tax return forms notified: You can claim deductions till June 30

A new schedule (column) has been added in the I-T return forms to report investments made between April 1 up to June 30, 2020, for which deductions

Income tax return forms for FY 2020-21 notified

Taxpayers including individuals, Hindu undivided family, professionals and businesses, will be able to avail benefits of savings or investments made between April 1 and June 30, following the extension timelines provided by the finance ministry owing to Covid 19 pandemic.

CBDT notifies revised Form 26AS, to now include real estate, share transaction details

Form 26AS is an annual consolidated tax statement that can be accessed from the income-tax website by taxpayers using their Permanent Account Number (PAN). The revamped Form 26AS will now come into effect from June 1, the Central Board of Direct Taxes (CBDT) said.

Employee’s contribution to PF will be reduced to 10%. Will it increase the tax burden?

The reduction in contribution will lead to an increase in your takehome pay which, in turn, will be taxed at your income-tax slab rate. This reduction has to be undertaken by all companies falling within the ambit of EPF.

Got a pay cut? You may still be taxed on your original CTC

If a pay-cut is not reflected in the components of your salary, you may still be taxed on your original CTC.

Investment in NPS via this route can help you save tax in new tax regime

Investment in NPS via this route can help you save tax in new tax regime

Investment in Tier-I account of NPS via your employer allows you to claim a deduction from your gross total income under the Income-tax Act even und

TDS, TCS cut: More funds for taxpayers

The finance minister also announced that the due date of all income tax (I-T) returns for assessment year 2020-21 will be extended to November 30, 2020. Tax experts said the move to reduce TDS and TCS will help increase liquidity in the system.

New TDS, TCS rates from May 14 on fixed deposits, dividends and other non-salaried payments

The new TDS rates have come into effect from May 14, 2020, and will remain effective till March 31, 2021, i.e., till the end of the FY 2020-21, the Finance Minister Nirmala Sitharaman said in her press briefing.

TDS, TCS rates cut to put cash in your hand but your tax liability remains same

A reduction in TDS, TCS rates does not mean reduction in the tax liability of the receivers of these payments/incomes.

Vivad se Vishwas scheme deadline extended to December 31, 2020

Vivad se Vishwas is a direct tax scheme for settling tax disputes between individuals and the income tax department. The extension of the deadline has come as a relief for those individuals who want to settle their tax disputes.

Income tax return filing deadline for FY 2019-20 extended to Nov 30, 2020

Income tax return filing deadline for FY 2019-20 extended to Nov 30, 2020

As per the announcement, "Due date for all income-tax return for FY 2019-20 will be extended from July 31, 2020, and October 31, 2020, to November 3

View: What happens if the Covid tax on super-rich becomes a reality

International instances back higher tax liabilities for the rich at times of exigencies.

Tax optimiser: IT professional Sharma should use NPS instead of PPF to save tax

ET Wealth tells readers how they can optimise their tax by rejigging their income and investments.

Can I avoid capital gains on sale of property?

Tax on capital gains is needed to be paid when property or any other asset is sold by an individual.

Not received your income tax refund yet? Follow these steps

It has come to the notice of the Income Tax Department that certain taxpayers were unable to receive their income tax refunds as there may be outstanding tax demand pending from the previous year(s).

Eligible individuals can submit Form 15G, Form 15H to avoid TDS on dividend income too

Eligible individuals can submit Form 15G, Form 15H to avoid TDS on dividend income too

Tax will be deducted from the dividend at the time of payment by the company/mutual fund house if the total amount of dividend being paid to the ind

How to choose the tax regime for TDS on salary for FY2020-21

Individuals should remember that TDS on salary is deducted as per the applicable income tax slab rates whereas TDS on say interest income from fixed deposits is deducted at only 10 per cent.

How the old tax regime serves the double benefit of tax-saving and financial well-being

It is universally accepted that tax breaks on investments nudge people to save more. The new tax regime has taken away the incentive to save. The deductions ensure financial wellbeing of taxpayers. Do you know the role they plan in your financial plan?

How to calculate income tax for FY 2020-21

For FY 2020-21, an individual taxpayer has an option to choose between the old and the new tax regime. In order to know which tax regime is beneficial for an individual, it is important to know how much will be the tax liability in both the regimes.

Claim over Rs 2.5 lakh tax deduction? Don’t opt for new income tax regime

If you wish to opt for the new tax regime, you will have to inform your employer through the declaration form. The employer will start deducting tax at source (TDS) accordingly for each month. Find out which tax option suits you.

ITR filing deadline for FY 2019-20 extended to Nov 30, Form 16 to be received by June 30

ITR filing deadline for FY 2019-20 extended to Nov 30, Form 16 to be received by June 30

The government has extended ITR filing deadline for FY 2019-20 to November 30, 2020. As per chartered accountants, the deadline for issuing Form 16

For TDS from salary, you will have to choose your tax regime now, says CBDT circular

This was clarified by the Central Board of Direct Taxes (CBDT) in a circular. The circular addressed the issue of tax deduction at source from an employee's salary in case the employee opts for new tax regime in FY 2020-21.

No tax implications of coronavirus relief withdrawals from EPF: EPFO

The withdrawal can also be done online. For this, one must have an activated Universal Account Number (UAN), the Aadhaar should be verified and linked with the UAN and the bank account with IFSC Code should be seeded with UAN.

Tax optimiser: IT Professional Agarwal can cut tax by Rs 26,000 via health insurance, perks

ET Wealth tells readers how they can optimise their tax by rejigging their income and investments.

COVID-19 thwarts tax planning for several rich individuals and promoters

Virus could hit the way Indian revenue authorities tax their individual, foreign income.

Govt to give income tax refunds up to Rs 5 lakh immediately due to coronavirus impact

Govt to give income tax refunds up to Rs 5 lakh immediately due to coronavirus impact

All pending income tax refunds up to Rs 5 lakh will be issued immediately to individuals and business entities.

How to calculate income tax online

​Use this income tax calculator to know whether you will benefit by opting for the new tax regime or staying with the existing tax regime for the current financial year 2020-21.

You may have to claim refund for FY2019-20 tax saving done after March 31

The government has extended the deadline to complete tax-savings to June 30, 2020, via an ordinance dated March 31, 2020. However, this might lead to individuals filing ITR to claim excess tax deducted from their salary income.

New criteria for NRI status and how income will be taxed in India effective from FY2020-21

At the stage of the passing of the Bill, the amendments originally proposed in the criteria determining 'residential status' in India of a person in the Finance Bill 2020 were relaxed. This change will directly impact the non-resident Indian.

Extra time for submitting Forms 15G, 15H for FY2020-21 to avoid TDS

​The extension of validity of Form 15G/ 15H of FY 2019-20 to June 30, 2020, would come as a relief to the individuals who usually have to submit these forms in the first week of April every financial year to avoid TDS.

Tax saving deadline extended for FY2019-20: Here's how it impacts you

Tax saving deadline extended for FY2019-20: Here's how it impacts you

The government has extended the last date for tax saving for FY2019-20 from March 31, 2020 to June 30, 2020.

Coronavirus impact: Donation to PM CARES Fund eligible for 100% tax deduction

The date for making various investment/payment for claiming deduction under Chapter-VIA-B of the I-T Act, which includes section 80C (LIC, PPF, NSC, etc), 80D (mediclaim), 80G (donations), has been extended to June 30, 2020.

New tax regime and other tax changes that will come into effect from April 1

​The government via a press release dated March 30, 2020, has clarified that there is no extension of the financial year.​ Here is a look at seven new tax rules that will come into effect from the new financial year, i.e. April 1, 2020.

Tax-saving investments for FY 2019-20 allowed till June 30, 2020

According to chartered accountants, individuals can complete their tax-saving exercise for the financial year 2019-20 by June 30, 2020.

Vivad se Vishwas scheme: Interest, penalty waived for entire scheme period

The extension has come after the country has gone into lockdown mode due to the increase in cases of those infected by the coronavirus.

Belated, revised ITR deadline extended to June 30, 2020

Belated, revised ITR deadline extended to June 30, 2020

​The government has also the extended deadline for PAN-Aadhaar linking from March 31, 2020, to June 30, 2020.

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Income Tax: All about it

Income tax is a tax levied directly by the central government on the incomes earned by the individuals and other non-individual entities such as Hindu Undivided Family (HUF), partnership firm and so on during a financial year. These various sources of income include salary, pension, capital gains, sale of financial investments, interest income, other incomes and so on.

Unlike the Goods and Services Tax (GST) Council where the Union Finance Minister and State Finance Ministers decide the rates, the income tax rates are announced by the Finance Minister during the year’s Union Budget.

The rate at which your total income earned during the year will be taxed depends on the slab in which your income falls. Over and above the income tax, a cess and surcharge is levied. The cess is payable by all taxpayers. For those earning more than Rs 50 lakh a year, a surcharge is levied between 10 percent and 37 percent.

The total income earned by a taxpayer during a financial year has to be reported to the government in the assessment year by filing income tax return (ITR filing).

Financial year is the year in which income is earned by a taxpayer; a financial year is between April 1 and March 31. Assessment year is the year immediately following the financial year for which the return is to be filed.

Income earned from various sources such as salary, pension, interest from fixed deposits (FDs), savings account, capital gains from sale of house, equity mutual funds, debt mutual funds and so on have to be reported in ITR.

1. What is the basic exemption limit for individuals aged below 60 years?
According to income tax laws, it is mandatory to file ITR if your income exceeds the basic exemption level. The basic exemption level depends on the age of the individual during the financial year.

Currently, for individuals below 60 years of age, the maximum income exempt from tax is Rs 2.5 lakh in a financial year. This can change depending on the announcements made in the Union Budget.

2. What are the tax rates at which income is charged?
The income tax slab rates are 5 percent, 20 percent, and 30 percent.
Also Read: Latest income tax slabs

3. How to file income tax return
An individual can file income tax return by registering himself on the or via private e-filing websites.

4. What is the difference between gross total income and net total income?
Gross total income refers to the total income earned by the taxpayer. Income tax laws allow an individual to claim certain tax-exemptions (such as house rent allowance) and deductions under various sections such as section 80C for investments made in Public Provident Fund, equity mutual funds etc. of up to Rs 1.5 lakh.

Gross total income minus tax-exemptions and deductions would result in net total income. The tax liability of the person will be calculated on the net total income.

5. What is the last date to file income tax return?
The last date to file income tax return for individuals is July 31, unless extended by the government.

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