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Wealth management during coronavirus

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

​The extension of validity of Form 15G and Form 15H of FY 2019-20 would come as a relief for the taxpayers who usually have to submit these forms in the first week of April every financial year to lower or avoid TDS.

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

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

According to chartered accountants, this means that individuals can complete their tax-saving exercise for the ongoing financial year 2019-20 by Jun

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

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

Aadhaar-PAN, Vivad se Vishwas, belated ITR, tax-saving deadlines extended to June 30, 2020

The government decision comes amid curfews and lockdowns due to the Covid-19 pandemic.

Why you should file belated ITR, correct ITR errors before March 31

Once this opportunity is missed, then you will not be able to file your ITR for FY 2018-19. In such a case you will be able to file the ITR only in response to a notice or apply to the income tax department for permission to file the ITR if a refund is due.

How can I set off losses from share trading against income tax liability in current FY?

How can I set off losses from share trading against income tax liability in current FY?

Short term capital losses are allowed to be set off against both long and short term gains. However, if you are not able to set off your entire capi

Tax optimiser: Desai can cut tax outgo by Rs 66,000 via NPS, perks

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

Govt notifies rules, forms for Vivad Se Vishwas scheme

“The tax department has finally operationalised the ‘vivad se vishwas’ scheme by notifying forms and rules. Also, an online utility has been activated to enable filings by tax payers today,” said Rohinton Sidhwa, partner at Deloitte Haskins & Sells.

Comparison of new income tax regime with old tax regime

Based on an example, it is evident that maximum benefit in terms of tax savings that can be availed under the new regime (in case no investments are made) is Rs 75,000. The highest tax rate, i.e. 42.7%, will continue to be a major challenge for HNIs.

What are the income tax exemptions and other monetary benefits available to women?

​​Up until Financial Year (FY) 2011-12, women and men had different income tax slabs with women having to pay slightly less tax. However, from FY 2012-13, this was done away with and tax slabs for men and women were made the same.

How to save tax without fresh investments in FY 2019-20

How to save tax without fresh investments in FY 2019-20

A taxpayer may be having liquidity issues and as such, not be in a position to make further investments in tax saving instruments. For such taxpayer

Vivad se Vishwas Scheme: How individuals can settle their income tax disputes

The scheme launched by the Finance Ministry offers a complete waiver on interest and penalty to the taxpayers who pay their disputed taxes on or before March 31, 2020. Here are the key details of the scheme that a taxpayer should know.

How to know which income tax slab you fall in?

​​As your income level increases, income at different levels or in different bands will be taxed at different rates which are called the slab rates. To know how much is your tax liability in FY 2019-20, it is important to know which income tax slab you fall in.

DDT change: Distribution of surplus funds to change, too

Distributing dividends was subject to DDT at an effective tax rate of 20.56 per cent.

Yes Bank crisis could hit your tax saving for current financial year: Here's what to do

If your SIP in an ELSS mutual fund scheme or premium for health or life insurance was being auto-debited from a Yes Bank account then these debit won't have taken place after the bank was put under moratorium.

Tax optimiser: Salaried Khanna can cut tax by Rs 4.7 lakh by rejigging salary structure

Tax optimiser: Salaried Khanna can cut tax by Rs 4.7 lakh by rejigging salary structure

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

Clarity needed on carry forward, set-off of losses when shifting between two tax regimes

If an individual opts for new tax regime, the question is what will happen to the existing brought forward losses from house property. Will they lapse if individual opts for the new tax regime wherein claiming such losses is not permitted? Here's some clarity.

Authority of Advance Ruling disputes not within Vivad Se Vishwas ambit

CBDT issued a set of 55 questions and answers on Thursday to clarify various aspects of the tax amnesty scheme, which allows taxpayers to settle disputes by paying interest and penalty. The scheme was announced in the budget to bring down pending litigation and a bill to give it shape was approved by Lok Sabha.

Vivad se Vishwas FAQs issued: Litigant can get refund under scheme if more tax already paid

The 'Vivad se Vishwas' Scheme aims at dispute resolution in respect of pending income tax litigation in order to reduce pending litigation, generate revenue for the Government and benefit taxpayers.

Can NRIs save tax through health insurance bought in India?

An NRI is allowed to buy a health insurance policy in India to secure their health as well as that of their family members. Most Indian health insurance policies provide treatment only within the boundaries of India.

You can invest more than Rs 2 lakh in NPS to save even more tax

You can invest more than Rs 2 lakh in NPS to save even more tax

Individuals investing in National Pension System (NPS) can claim tax benefit under three sections of the income-tax Act, namely - Section 80CCD (1),

Not filed ITR for FY 2018-19? March 31 is your last chance

There are few important financial deadlines in the month of March that an individual taxpayer needs to be aware of. These include filing a belated tax return, revised return and payment of advance taxes.

Tax queries: Exemptions, deductions you will not get in new income tax regime

Every week, an expert selected by ET answers queries from our readers on income tax and other levies.

Draconian tax audit and retail equity traders

Even a small retail investor is subject the requirements of a business while filing IT returns.

3 easy steps to choose your tax-saving investments this year

You have exactly four weeks to finalize your tax-saving investments. In case you forgot, this is the first week of March, and you have to make your investments before 31 March to claim tax deductions on them in this financial year.

Is the new Income Tax dispute settlement scheme attractive enough?

Is the new Income Tax dispute settlement scheme attractive enough?

Tax experts say none of the big corporate houses are likely to be attracted towards the scheme.

Belated ITR filers can't use new tax regime unless govt clarifies: Experts

According to tax experts, individuals opting for the new tax regime should keep in mind that their tax liability will be calculated as per the new tax rates if tax return is filed before the deadline of filing ITRs, i.e., July 31.

Post tax, Rs 5 lakh income will be higher than Rs 5.16 lakh: Here's why

If your net taxable income exceeds Rs 5 lakh by even Re 1 then you will be ineligible to avail a tax rebate.

How to claim tax exemption under section 54F?

Exemption u/s 54F can be availed within a year before or two years after the date of transfer of shares (assuming these are held for long term) or within three years after the date of construction of a residential house in India.

Tax optimiser: Engineer Sharma can cut tax by Rs 50,000 via NPS, perks

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

Who is eligible for 'Vivad se Vishwas' scheme?

Who is eligible for 'Vivad se Vishwas' scheme?

The I-T department issued advertisements in leading dailies saying the scheme was a "golden opportunity... to settle income tax disputes" and bridge

Income tax benefits on EPF contributions: New vs existing tax regime

In the new tax regime, the tax benefit available on employee's own contribution to EPF account is impacted.

Impact of proposed new income tax rates on a Rs 20 lakh salary

Here is how much total deductions and tax-exemptions a person with Rs 20 lakh total salary income in a financial year should claim so that his/her tax-liability remains the same in both tax structures.

Impact of proposed new income tax rates on a Rs 15 lakh salary

If an individual earning Rs 15 lakh is wondering which tax structure will be more beneficial, then he/she can figure out the same by calculating the total amount of deductions that he/she is claiming in a financial year.

Govt needs to clarify how TDS from salary will work in new income tax regime: Experts

If an employee informs employer at the start of the financial year about opting for new tax regime, will he/she be allowed to switch to the existing regime during the year and vice versa? The new option may lead to higher deduction of taxes from the employee's salary.

If I opt for the existing tax regime for FY21, will equity dividend be tax-free?

If I opt for the existing tax regime for FY21, will equity dividend be tax-free?

Every week, an expert selected by ET answers queries from our readers on taxation.

How investing in NPS can help you save tax

Although the National Pension System comes with exempt-exempt-exempt (EEE) tax status, there is a catch.

Vivaad Se Vishwas Deal sweetened

Availing of Vivaad Se Vishwas? You'll have to pay only half the amount if the appeal was filed by the taxman.

Why a simplified tax regime is the need of the hour

Tax rules must be clear-cut if the government wants to lower tax arrears.

Sold a property? Here's all you need to know about investing the capital gains

An individual is required to invest capital gains earned from selling property in specified instruments to save tax. If such investment is not made, then he/she can deposit the gains in the capital gain account.

Budget 2020 may tax employer's excess contribution to EPF, NPS twice

Budget 2020 may tax employer's excess contribution to EPF, NPS twice

The budget proposal was made to restrict the tax-exempt contribution by employer to EPF, NPS and superannuation fund to Rs 7.5 lakh in an FY. Howeve

These individuals can't switch between old and new income tax regimes every year

As per budget proposals, an individual has an option to switch between new and old tax regime every year. In order to be eligible to opt for the tax structure as per an individual's convenience, there is one condition that must be satisfied.

How new income tax rates impact those with Rs 10 lakh salary

An individual with a salary of Rs 10 lakh is wondering which tax structure will benefit them more. Should they opt for new tax regime sans tax exemptions and deductions or continue with existing tax structure with tax exemptions and deductions.

New tax regime allows deduction of interest on home loan on rental property

In the new tax regime, there is good news for individuals who have rented out their house property. Such individual taxpayers can avail the deduction on interest paid on housing loan. However, one should be careful while claiming this deduction.

Incomes that are exempted under the proposed new tax regime

70 deductions will be removed in the new regime. However, there are certain incomes that are exempt.

I am selling a flat I bought in 1989. How should I calculate capital gain tax?

I am selling a flat I bought in 1989. How should I calculate capital gain tax?

You may invest the capital gains amount in Section 54EC bonds within six months from the date of sale to avail exemption from capital gains tax on t

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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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