Good news for taxpayers! Check how the revised Income Tax Guidelines will help you.

The Central Board of Direct Taxes (CBDT) has issued amended instructions for the compounding of specific Income Tax Act, 1961 offenses.

 

  • The CBDT has issued amended guidelines for compounding certain offenses under the Income Tax Act of 1961.
  • The CBDT has decriminalized offenses punished under Section 276 of the Act.
  • Section 276 of the Income Tax Act provided for the harsh imprisonment of a taxpayer.

The Indian government has been attempting to make Income Tax guidelines more forgiving for taxpayers. Taxpayers make major contributions, assisting the government in driving the economy. The Central Board of Direct Taxes (CBDT) has issued amended guidelines for the compounding of specific violations under the Income Tax Act of 1961, which will make doing business easier and lower the severity of penalties for violators. The new rules address a variety of offenses under the Act’s prosecution requirements.

One of the most significant modifications in the guidelines is that the CBDT has made compoundable offenses punished under Section 276 of the Act. If an Act becomes compoundable, a violation may avoid prison time by paying a fine. Previously, Section 276 of the Income Tax Act provided for harsh imprisonment for up to two years for a taxpayer.

 

 

The CBDT stated that the scope of eligibility for compounding of cases has been broadened, with the case of an applicant sentenced with imprisonment for less than two years, which was previously non-compoundable, now becoming compoundable.

The appropriate agency may commence prosecution procedures against taxpayers for infractions under the Income Tax Act. Taxpayers and experts have called for the offenses to be decriminalized.

“The time limit for accepting compounding petitions has been extended from 24 months to 36 months from the date of complaint filing. The difficulties of the procedures have also been reduced/simplified “said the CBDT

Read More: Gross Direct Tax Collections Increase by 30% in Fiscal Year (FY) 2022-23 Net Direct Tax Collections for the Fiscal Year 2022-23 have increased by 23%.

It further said that explicit upper limitations for the compounding fee covering defaults across many provisions of the Act had been introduced.

“Additional compounding charges in the form of penal interest at 2% per month up to 3 months and 3% per month after 3 months have been reduced to 1% and 2%, respectively,” the CBDT stated.

 

In FY 2022-23, gross direct tax collection increases by 30% to Rs 8.36 lakh crore.

Gross Direct Tax Collections Increase by 30% in Fiscal Year (FY) 2022-23 Net Direct Tax Collections for the Fiscal Year 2022-23 have increased by 23%.

Advance tax revenues for the fiscal year 2022-23 were Rs. 2,95,308 crore as of September 17, 2022, representing a 17% increase.

Refunds totaling Rs. 1,35,556 crore were issued in the current fiscal year, an increase of 83% over the previous year.

Direct tax collections continue to grow at a robust pace, a clear indicator of the revival of economic activity post-pandemic, as also the result of the stable policies of the Government, focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology.

 

gross direct tax

 

The Direct Tax collections numbers for FY 2022-23, as of 17.09.2022, reveal that net collections are at Rs. 7,00,669 crore, compared to Rs. 5,68,147 crore in the equivalent time of the prior Financial Year, i.e. FY 2021-22, reflecting a 23% rise. Corporation Tax (CIT) at Rs. 3,68,484 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at Rs. 3,30,490 crore comprise the Net Direct Tax collection of Rs. 7,00,669 crore (net of rebate).

The gross collection of direct taxes (before correcting for refunds) for FY 2022-23 is Rs. 8,36,225 crore, compared to Rs. 6,42,287 crore in the equivalent period of the prior Financial Year, i.e. FY 2021-22, representing a 30% increase over FY 2021-22 collections.

Read More: ITR filing: Return filed before July 31 but not received a refund yet? Here are the likely reasons

The gross collection of Rs. 8,36,225 crore includes Rs. 4,36,020 crore for Corporation Tax (CIT) and Rs. 3,98,440 crore for Personal Income Tax (PIT) including Securities Transaction Tax (STT). Advance Tax of Rs. 2,95,308 crore; Tax Deducted at Source of Rs. 4,34,740 crore; Self-Assessment Tax of Rs. 77,164 crores; Regular Assessment Tax of Rs. 20,080 crores; and Tax under other minor headings of Rs. 8,933 crores are the minor head collections.

 

gross direct tax

 

The cumulative Advance Tax collections for the first and second quarters of FY 2022-23 are Rs. 2,95,308 crore as of 17.09.2022, compared to Advance Tax collections of Rs. 2,52,077 crore for the same time of the immediately preceding Financial Year, indicating a 17% increase. The Advance Tax collection of Rs. 2,95,308 crore consists of Rs. 2,29,132 crore for Corporation Tax (CIT) and Rs. 66,176 crore for Personal Income Tax (PIT).

The processing pace of income tax returns filed during the current fiscal year has increased dramatically, with about 93% of officially certified ITRs processed by September 17, 2022. This has led to speedier refund processing, with nearly a 468% increase in refunds given in the current fiscal year. Refunds totaling Rs. 1,35,556 crore were issued in the fiscal year 2022-23 until September 17, 2012, compared to Rs. 74,140 crores issued in the preceding fiscal year 2021-22, representing an increase of more than 83%.

 

ITR filing: Return filed before July 31 but not received refund yet? Here are the likely reasons

The deadline for filing income tax returns (ITR) for FY 2021-22 or AY 2022-23 has passed. While many people filed their ITR before the deadline of July 31, 2022, they have yet to receive their refund for various reasons.
If you filed your ITR before or on the deadline but did not receive your refund, here are three likely explanations.

Check to see if the tax department has handled it.

If you haven’t gotten your income tax refund yet, check to see if it has been processed. Individuals receive their refund only after their ITR is completed and confirmed by the tax authority. It should be emphasized that you will only receive a refund if the tax department affirms that you are qualified for one after processing your income tax return.

Check the status of your income tax refund.

If you find that your return has been processed and the refund has been confirmed but is still pending, you should check the refund status. This is available on the NSDL website.

 

 

Here’s how to use the NSDL website to check the status of your income tax refund.

The status of an income tax refund can also be verified on the income tax e-filing website. Here’s how it’s done:

  • Use your User ID and password to access your account on the income tax e-filing portal.
  • Next, select ‘e-File’ and then ‘Income Tax Returns.’ Then click on ‘View Filed Returns’ and then ‘View Details.’
    One of the following three alternatives will be displayed on your screen: a) “Refund Issued” with the mode of payment, the refund amount, and the date of refund clearing.
    b) “Refund Failure,” specifying the cause for the failure, the date of communication, and the registered email address.

If your refund request was denied, you must file a request to reissue the income tax refund through the income tax e-filing system. If you notice ‘No Records Found,’ it is possible that the I-T department has yet to release the tax refund details.

 

Bank account pre-validation

Another reason you haven’t received your return is a mistake in pre-validating your bank account. Check to see if your PAN is linked to your bank account since this could cause the return to be delayed. Here’s how to do it:

  • Go to the income tax e-filing system and sign in with your user ID and password.
  • After logging into your account, go to ‘My Profile and select the ‘My Bank Account option.
  • On the screen, you can see the pre-validated bank accounts. It will also display the bank account you have designated to receive your income tax refund for the fiscal year 2021-22.

Read More: 194R- TDS Clarifications on Perquisites & Additional Guidelines by CBDT

Due to High Demand

If you have an outstanding demand from the previous fiscal year, your income tax refund may be delayed as well. If this is the case, your income tax refund will be reduced to account for the demand. This will be communicated to you via an intimation notice issued under Section 143. (1).