Be aware of these points before filing an Income Tax Return

Be aware of these points before filing an Income Tax Return

The deadline for filing an income tax return (ITR) is December 31, 2021. To prevent a last-minute rush, those taxpayers who have not yet filed their Income Tax Returns for Assessment Year (AY) 2021-2022 must do so as soon as possible. When submitting an ITR, taxpayers must be aware of the information provided by the IRS.

From April 1, 2021 to December 13, 2021, the Central Board of Direct Taxes (CBDT) provided refunds of over Rs. 1,36,779 crore to over 1.27 lakh taxpayers. In 1,25,34,644 cases, income tax refunds totaling Rs 46,438 crore were issued, while corporate tax refunds totaling Rs 90,340 crore were awarded in 2,02,705 cases. Income Tax India stated that this comprises 90.95 lakh refunds of Rs 18, 848.60 crore for the fiscal year 2021-22.

The Income Tax Department has strongly advised all taxpayers to see their Form 26AS and Annual Information Statement (AIS) through the e-filing site http://incometax.gov.in to verify the accuracy of TDS and Tax Payments and to take advantage of ITR pre-filling.

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It is important for taxpayers to cross check the data in the AIS statement with their bank passbook, interest certificate, Form 16, and capital gains statement from brokerages in case of purchase and sale of equity or mutual funds.

There will be no ITR for certain senior citizens.

A new section 194P has been inserted into the Income Tax Act, 1961, by the Finance Act, 2021, to provide that senior citizens over the age of 75 who only have pension income and interest income from the account(s) maintained with the bank in which they receive such pension do not need to file an ITR, according to Income Tax India.

Relief Measures for Covid-19

The amount received by a taxpayer for medical treatment from an employer or from any person for Covid-19 treatment throughout the financial year and following years will be exempt from income tax. India’s Income Tax Department sent out a tweet.

Income Tax Return: The Government Provides Significant Clarification Regarding the ITR Process

  • You can rest easier if you file your ITR as soon as possible. Income Tax India tweeted, “Filed Income Tax Return for AY 2021-22, e-verified it, returns got processed, and refund credited to the bank.”
  • “Dear taxpaying public! Income Tax India tweeted, “Here’s what you need to remember before filing your return this weekend.”
  • ITR1 is required for those having a wage and interest income, as well as income from a single dwelling property.
  • ITR2 is required for those with income from more than one dwelling property or capital gains.
  • “Filing your tax return has never been easier because we’ve prefilled part of your information!” India’s Income Tax Department sent out a tweet.
  • Form 16, bank statement, interest certificate from bank, housing loan interest statement, if any, rental receipts and house property tax, if any, capital gains statement from broker, if any, 26AS and Annual Information Statement are among the documents required (AIS).

The helplines for the Income Tax Department are 1800 103 0025 and 1800 419 0025, respectively.

Can you set off Ltcg/Stcg tax liability against Property Investment?

Can you set off Ltcg/Stcg tax liability against Property Investment?

My financial advisor made various changes to my portfolio last year. He had swapped out underperforming mutual funds for better performing ones. This resulted in a significant amount of tax burden, both short and long term. I just took out a loan against my mutual funds to purchase a home for Rs 12 lakh. Is it feasible to receive tax relief as a result of this investment?

Section 54F of the Income Tax Act exempts capital gains accruing on the transfer of a long-term capital asset other than a residential house property (mutual funds in your case) if the gains are invested in a “new residential dwelling property” within the timeframe prescribed. An investment in an ashram property cannot be considered as a residential property, conservatively. As a result, the investment you made will not be eligible for Section 54F exemption. Long-term capital gains are also not eligible for deductions under Sections 80C through 80U. As a result, long-term capital gains on the transfer of listed units of an equity-oriented mutual fund are taxable at 20% (plus relevant surcharge and cess) or 10% for gains in excess of Rs 1 lakh.

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Short-term capital gains, as defined in Section 111A, will be taxed at 15% on the sale of listed units of an equity-oriented mutual fund. Any other short-term capital gains will be taxed at the slab rates in effect. Short-term capital gains referred to in Section 111A are also not eligible for a deduction under Sections 80C to 80U. You may, however, claim deductions from STCG that are not covered by Section 111A. Furthermore, because there are no provisions for set-off of current year’s tax liability against next year’s, this year’s tax liability must be discharged this year.

I am a salaried individual with a Rs 1 lakh long-term capital loss. Which ITR form must be submitted?

Intra-day trading income is classified as business income and is taxed under the heading ‘Profits and Gains from Business and Profession.’ Gains on the sale of securities held as investments, on the other hand, are taxed as long-term or short-term capital gains, depending on the holding period. You can use Form ITR-3 to report salary income, profits and gains from your business or profession, as well as capital losses.

Learn about the reasons if you got a notice from the Income Tax department.

Learn about the reasons if you got a notice from the Income Tax department.

If a person engages in high-value cash transactions, he or she is likely to receive a notification from the Internal Revenue Service. Banks, mutual fund houses, brokerages, and property registrars are among the several cash-related transactions. If the value of the transaction exceeds a certain level, it must be reported to the income tax department.

The Internal Revenue Service has reached agreements with a number of government agencies to access financial information of people who engage in high-value transactions but fail to mention them on their tax returns. Amit Gupta, MD of SAG Infotech, gives several examples of transactions that may have resulted in a notice from the income tax Department.

“The maximum amount of cash that can be deposited in a bank FD is INR 10 lakh. A bank depositor making a cash deposit in a bank FD account is urged not to exceed the INR 10 lakh limit. The Central Board of Direct Taxes (CBDT) has mandated that banks disclose individual deposits in one or more fixed deposits that exceed the prescribed limit “According to Amit Gupta.

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Amit Gupta goes on to say, “A bank account’s cash deposit limit is INR 10 lakh. The income tax agency may issue an income tax notice if a savings account holder deposits more than INR 10 lakh in a financial year. In the meantime, any cash deposits or withdrawals in a bank account that exceed INR 10 lakh in a financial year must be reported to the tax authorities. The limit for current accounts is INR 50 lakh.”

Paying credit card bills

“Payments of INR 1 lakh or higher in cash against credit card debts should be disclosed, according to the CBDT. In addition, if a payment of INR 10 lakh or more is made to settle credit card bills in a financial year, the amount must be reported to the tax authorities. The income tax that applies to credit card transactions is, however, the most pressing worry. You must ensure that you do not exceed your credit card spending limit, as the tax authorities maintains track of credit card transactions because your credit card information is connected to your PAN Card, allowing the government to readily monitor your spending online. Any significant transaction should be disclosed when submitting an ITR. If you use credit cards for high-value purchases, make sure to mention them on Form 26AS when completing your ITR to avoid receiving a letter from the IRS “He made the suggestion.

The purchase or selling of a moveable asset

“Any investment or sale of immovable property for an amount of INR 30 lakh or more must be reported to the tax authorities by the property registrar. Your Form No. 26AS should be used to report the property purchase or sale. If you are buying or selling a home for more than INR 30 lakhs, you are also on the radar of the Income-Tax Department. The Internal Revenue Service may investigate whether the buyer disclosed the money on his or her tax return “Added he.

Taxpayers Must Now Break Down Dividend Income Each Quarter

Cash transactions involving stocks, mutual funds, debentures, and bonds

According to Gupta, “Certain individuals who engage in mutual funds, stocks, bonds, or debentures must guarantee that their cash transactions do not exceed INR 10 lakh. The Internal Revenue Service (IRS) has developed an Annual Information Return (AIR) account of financial transactions to help taxpayers track high-value transactions. On this basis, tax officials will collect information about unusually high-value transactions in a given fiscal year. Check the AIR section of your Form 26AS if any expense or transaction has been marked as a high-value transaction. The high-value financial transactions are detailed in PART -E of Form 26AS.”

Sale of foreign currency and indulging expense of foreign exchange

“Any individual who receives an amount of INR 10 lakh or more in a financial year for the sale of foreign currency, as well as any credit in such currency through a debit card or credit card, or insurance of traveller’s cheque, draught, or other instruments, should notify the income tax department,” Amit Gupta concluded.