The Economic Times
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| 08 August, 2020, 03:34 AM IST | E-Paper


    Wealth management during coronavirus

    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.

    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

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

    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.

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

    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

    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

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

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

    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 wi

    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?

    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 listed securities.

    It pays to file your income tax returns on time; take these steps to do so

    It pays to file your income tax returns on time; take these steps to do so

    Be fully prepared with all the information about your income and investments to file your tax returns before the new November deadline. Account for

    Tax optimiser: IT professional Agarwal has limited scope to cut income tax

    Pune-based IT professional Girish Agarwal utilises most of the income tax deductions available to him and his salary structure is also quite tax-friendly Due to this, there is not much of a scope to further reduce his income tax liability.

    Know your tax liability from segregated debt mutual fund portfolio payouts

    There are two things to be figured out: the cost of acquisition of units in the segregated portfolio and the holding period of the units in the segregated portfolio. Any amount recovered from the segregated portfolio will be considered as capital gain for income tax purposes.

    Can I claim tax benefit on EMI of loan taken for under-construction flat?

    The amount of principal repaid can be claimed as tax deduction u/s 80C subject to maximum of Rs 1.5 lakh. But if the house is sold within five years of possession, the amount claimed as deduction will be considered as income in the year in which property is sold.

    Tax optimiser: How HRA, NPS can help bring down Rao's high tax to zero tax

    Taxspanner estimates that Rao can reduce her tax to nil if her pay structure is rejigged to include some tax-free allowances, her company offers her the NPS benefit and she pays rent to her mother to claim HRA exemption.

    TDS levy on cash withdrawal of over Rs 20 lakh from bank account if you haven't done this

    TDS levy on cash withdrawal of over Rs 20 lakh from bank account if you haven't done this

    As per the amended law, if an individual withdraws cash exceeding Rs 20 lakh in an FY from his/her bank account and has not filed ITR during the las

    Here's how banks will find out if you have filed last 3 years income tax returns

    The Budget 2020, has further expanded the scope of section 194N of the Income-tax Act, 1961 to provide different tax rates for two different class of persons and two threshold limits to deduct tax on withdrawal of cash from any savings or current account.

    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

    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

    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 advan

    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

    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-

    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 can be claimed in financial year 2019-20.

    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

    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 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 under the new lower tax regime. Here's all you need to know about it.

    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 financial year 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 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 h

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

    As per the government announcement via a press conference, "Due date for all income-tax return for FY 2019-20 will be extended from July 31, 2020, and October 31, 2020, to November 30, 2020, and tax audit from September 30, 2020 to 31st October 2020."

    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

    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 outsta

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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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