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| 28 October, 2020, 09:59 PM IST | E-Paper
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    Tax

    Wealth management during coronavirus

    LTC Cash Voucher Scheme: 15 queries answered by government

    The government has announced the LTC Cash Voucher Scheme in lieu of LTC travel scheme via a press conference dated October 12, 2020. As the employees may have several queries regarding the scheme, the government has put 15 faqs to resolve the employees' queries.

    Income Tax Department issues guidelines for filing income tax returns

    The Income Tax Department has issued a detailed step by step reckoner for filing tax returns to be submitted under different heads. These instructions are guidelines to help the taxpayers for filling the particulars in Income-tax Return Form-1 for the Assessment Year 2020-21 relating to the Financial Year 2019-2020.

    I purchased a plot in June 1997 and sold it in June 2019. How will I calculate the capital gains tax?

    If you have held the asset for more than 24 months, the resulting capital gain from the transaction will be categorised as long term capital gain. The tax rate of LTCG is 20.8% with indexation.

    I sold a flat in 2013 and invested some amount in an under construction flat. What will be my tax liability?

    Tax exemption under the Capital Gains Account Scheme, 1988 is transitory in nature. The interest earned is taxable as ‘Income from Other Sources’ at slab rates. The account holder has to invest the balance in the account within the stipulated period.

    New tax regime doesn't allow LTC cash voucher tax benefit: Experts

    New tax regime doesn't allow LTC cash voucher tax benefit: Experts

    As per existing income tax law, an employee can claim tax-exempt payment of LTA/LTC (if provided by employer) equal to the fare of domestic travel s

    How central government employees can avail benefit under LTC cash voucher scheme

    Here is a look at the details of how central government employees can avail the LTC cash voucher scheme as per an office memorandum issued by the government on October 12, 2020.

    Should you opt for the LTC cash voucher scheme? Here's how much tax you will save

    Here is a look at how much you stand to gain by opting for the LTC cash voucher. This story will tell you about the rules of availing the LTC benefit and compare it to the conditions specified under the new voucher. Further, we will tell you if you should indeed opt for this scheme.

    Govt launches tax-exempt LTC cash voucher scheme to boost consumer spending

    This is a one-time scheme and payment will be only in lieu of one LTC during the block of four years 2018-21. This should help people to some extent as it makes one third of their spending, as per specified conditions, tax exempt.

    My total income from pension and investments is Rs 13 lakh. Which ITR form should I use for filing ITR?

    Your pension income will need to be declared under salary head and offered to tax at your applicable slab rate after standard deduction of Rs 50,000. LTCG on FMP maturity will be taxed at 20% after indexation.

    Tax optimiser: Salaried Kapoor can save Rs 19,000 tax via NPS, perks

    Tax optimiser: Salaried Kapoor can save Rs 19,000 tax via NPS, perks

    Taxspanner estimates that Kapoor can save almost Rs 19,000 if his salary structure is rejigged and he invests more in NPS on his own. Also, Kapoor s

    Opting for New tax regime for FY 2020-21? You will have to fill this additional form

    An individual is required to exercise the option of choosing a new tax regime at the time of filing income tax return. However, it was not clear how such an option has to be exercised by an individual. To resolve this issue, CBDT has notified this form.

    How tax will be collected at source from individuals on these transactions from Oct 1

    TCS will be levied on foreign remittances made through the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) and for buying foreign travel packages. Here is a look at the rules regarding the applicability of TCS and how much tax is leviable.

    Belated, revised ITR filing deadline for FY2018-19 extended to November 30, 2020

    ​This is the fourth time the government has extended the deadline of filing belated ITR from the original deadline of March 31, 2020, due to novel coronavirus pandemic situation in the country.

    Two tax tasks to complete by September 30, 2020

    The government has extended multiple income-tax related deadlines. Here is a look at two tax-related deadlines that fall on September 30, 2020.

    Can I claim deduction on principal of home loan EMI paid if I have not received possession of property?

    Can I claim deduction on principal of home loan EMI paid if I have not received possession of property?

    The principal portion of the EMI paid for the year is allowed as a deduction under Section 80C in the year of payment. Do remember that the property

    You must check these 5 things in your Form 26AS

    One of the things you should check in your Form 26AS is the information related to income-tax payments such as advance tax and self-assessment tax paid.

    Tax optimiser: Why software engineer Menon should replace LTA, opt for NPS benefit to cut tax

    ​​Pune-based software engineer Vijay Menon should ask his company to replace the taxable medical allowances in his salary with tax-free perks such as newspaper allowance. The leave travel allowance should also be replaced.

    ITR filing: Computing your total taxable income

    According to income tax laws, gross total income is divided into five parts. Here is how you can calculate income under each head and arrive at your gross total income. ​​Depending on your sources of income, you will have to select the appropriate form to file your ITR.

    9 key changes in ITR-1 and ITR-2 for FY 2019-20

    The Income-tax Department has made several changes in the ITR forms applicable for tax filing for FY 2019-20. Here are the key changes introduced in ITR-1 and ITR-2 which should be kept in mind while filing the return for the assessment year 2020-21.

    I bought a flat in February and want to sell it in October 2020. What will be the tax implication?

    I bought a flat in February and want to sell it in October 2020. What will be the tax implication?

    If you are selling the flat in less than 24 months of purchasing it, the gains will be short term capital gains. These will be taxed at your applica

    Missed ITR filing? You might pay penalty even if income is below exemption limit

    The government via Finance Act 2019 has amended the Income-tax Act whereby it has made it mandatory for certain categories of individuals to file their income tax return (ITR) even if their total income is below the exemption limit for FY 2019-20 onwards.

    I am a senior citizen and I did not incur capital gains in FY 2019-20. Can I file ITR-1?

    As per the ITR forms notified by the government, an individual is eligible to file a tax return using ITR-1 if the total taxable income from the specified sources does not exceed Rs 50 lakh in the financial year 2019-20.

    What other deductions can I claim from my salary part from common ones like 80C, 80D?

    The current income tax laws allow various other deductions from the income chargeable to tax apart from common ones such as section 80C, 80D, section 24 etc.

    Tax optimiser: Bose can cut tax by Rs 1.5 lakh via rent to mother, NPS

    Bose lives in his mother’s house and pays a nominal rent to her. Though his HRA is Rs 3.16 lakh, he claims exemption for only Rs 1 lakh (Rs 8,300 per month) as he is not sure of the tax implications for his mother. Since she is a senior citizen with no other income, he can pay her up to Rs 4 lakh a year.

    Do you need professional help in filing ITR? Here's how much it will cost you

    Do you need professional help in filing ITR? Here's how much it will cost you

    Most taxpayers are not aware of the finer points of taxation. A professional can ensure you file an error-free return. Here are things to consider i

    ‘Excess sum from builder on flat cancellation is capital gains’

    In its recent order, ITAT’s Mumbai bench has held the excess consideration received is in the nature of ‘capital gains’. In the case heard by ITAT, Mukesh Sohanraj Vardhan, the taxpayer, had treated the benefit of Rs 18.75 lakh received from the builder on cancellation of his deal as a long-term capital gain.

    Importance of Form 26AS in ITR filing process

    The Form 26AS will come with a few rather significant changes this year. In its new avatar, the Form 26AS will become a potent tool in the hands of the tax authorities, which is why it is important for a tax payer to know about these changes.

    How PNB customers can download Form-16A, interest certificate

    Punjab National Bank customers can get the Form 16A and interest certificates either by visiting the bank branch or download the same using Net Banking facility. Further, those who do not have the Net banking facility can also download Form 16A.

    TDS certificates should be available now: 4 steps to prepare to file income tax return

    The last date of issuing TDS certificates such as Form 16, Form 16A etc has expired on August 15, 2020, for FY 2019-20. However, before you start filing your income tax return (ITR) for FY 2019-20, there are four things you should do.

    Returning NRI: What will be the tax liability on interest earned on NRE, RFC and FCNR deposits?

    Returning NRI: What will be the tax liability on interest earned on NRE, RFC and FCNR deposits?

    This query has to be looked at from the perspective of the type of accounts that one can maintain under the provisions of the Foreign Exchange Manag

    Tax optimiser: Salaried Chawla can save Rs 54,000 tax via NPS, LTA

    Not only should you ask your employer for the NPS benefit, but you can also ask your company to replace the taxable medical and conveyance allowances in your salary with tax-free perks such as newspaper allowance and leave travel allowance (LTA).

    How to file ITR-1 with salary, house and other incomes for FY 2019-20

    This year ITR-1 form has introduced schedule DI to provide details of the tax-saving investments made in the extended period till July 31, 2020. To avoid payment of excessive tax, it is advisable that you should fill the information in the required columns.

    Working from home may prove ‘taxing’: Here's why

    As professionals work from home, salary components such as conveyance allowance can no longer be tax-free, and given the spread of the pandemic, one may also not be able to take a vacation and claim LTA (which can be claimed twice in a block of four years).

    Here's what govt's Taxpayers' Charter promises and expects from income tax payers

    PM Narendra Modi launched a platform for honouring the honest taxpayers. One of the key features of the platform is the Taxpayers' Charter which was announced in Budget 2020 by the Finance Minister in her speech.

    How ICICI Bank customers can download Form-16A, interest certificate

    How ICICI Bank customers can download Form-16A, interest certificate

    ICICI Bank customers can download the TDS certificates i.e. Form 16A and interest certificates via Net Banking facility. Here is the step by step gu

    How should the income from stock trading be accounted for tax purposes?

    Since you have income from stock trading, you will need to use ITR-2 to file your tax return. However, if you are doing any intra-day trading, it shall be treated as speculative business and you will need to file your return in ITR-3.

    Can I file ITR-1 for AY 2020-21 if I have made tax-free long term capital gains?

    Form ITR-1 is for ordinary residents having total income up to Rs 50 lakh from salaries, a single house property and any other sources (interest etc.), and agricultural income up to Rs 5,000.

    Here's how the income tax department tracks your financial transactions

    The government recently amended the Form 26AS which will show high-value transactions that are conducted by you in the financial year. However, there are other ways in which the tax department can track your financial transactions. Given below are the list of those ways.

    Higher TDS on dividend declared after April 1, 2020 if you don't submit PAN

    For NRI investors, 20% plus surcharge and cess is withheld. However, tax will be assessed on the basis of documents submitted to avail tax treaty benefit under DTAA.

    Tax optimiser: Engineer Dwivedi can cut tax by Rs 66,000 via home loan, NPS and tax-free allowances

    Tax optimiser: Engineer Dwivedi can cut tax by Rs 66,000 via home loan, NPS and tax-free allowances

    Pranav Dwivedi's salary structure is not very tax-friendly. His salary includes many allowances which are fully taxable in his hands and leads to hi

    These individuals have to pay full income tax for FY2019-20 even before getting income, TDS details

    As per the govt notification, all taxpayers with total self-assessment tax liability for FY2019-20 exceeding Rs 1 lakh must pay all of it by July 31, 2020, else penal interest of 1 per cent per month under section 234A of the Income-tax Act would be levied on any short payment of this.

    How to download Form-16A, interest certificate for HDFC bank

    Even though the deadline to file an income tax return for FY 2019-20 has been extended by four months, it is always a good practice to collect all the required documents well before the deadline to make it easier to file the tax return.

    ITR form: Who is eligible to file which tax return for FY 2019-20?

    The income tax return forms have been notified by the Central Board of Direct Taxes (CBDT). It is important to file your tax return using the correct ITR form. If the tax return is filed not using the correct form, then the ITR will be termed as 'defective return' and you will be asked to file the ITR again.

    Do I need to include the withdrawn EPF proceeds in ITR after leaving the job?

    At the time of withdrawal, the PF authorities will deduct tax at 10% on entire PF proceeds (assuming you have furnished your PAN to the PF authorities), including the interest. PF proceeds comprise employee’s and employer’s contributions, and the interest earned thereon.

    5 important tax-related dates for FY 2019-20 you should know

    5 important tax-related dates for FY 2019-20 you should know

    The government has extended various income tax-related deadlines in the wake of novel coronavirus pandemic and the fiancial stress caused by it. Her

    Form 26AS: High value transactions, other details that your tax passbook will show

    The government has revised the format of Form 26AS to show the high-value transactions conducted by an individual during the financial year. This will help individuals to file an error-free income tax return.

    Has working from home increased your tax liability? This is what you should do to save on tax

    As work-from-home becomes the new normal across the country, salaried taxpayers are seeing their tax shoot up. Many of the allowances in the pay package, including the commonly used reimbursement of fuel or conveyance expenses, have become taxable due to the travel restrictions imposed by Covid.

    How to download Form-16A, interest certificate for SBI

    A State Bank of India (SBI) customer can get the interest certificate and TDS certificates either by visiting his/her bank branch or by downloading the same from the Net banking facility. Having these documents handy makes it easier to file the income tax return.

    Tax on gifts: Documents that you should have

    ​Gifting is often used to transfer property or money within the family or to relatives by way of will or inheritance.

    Can I get rebate of Rs 12,500 against tax paid on long-term capital gains on equity?

    Can I get rebate of Rs 12,500 against tax paid on long-term capital gains on equity?

    An individual cannot claim rebate under section 87-A of the Income-tax Act on the tax payable on the long-term capital gains on the sale of the list

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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 incometaxindiaefiling.gov.in 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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