ITR in Form ITR-A by a successor company – Extended to March 31, 2023 by CBDT

  • 29 Sep 2022
  • ITR
  • Comments Off on ITR in Form ITR-A by a successor company – Extended to March 31, 2023 by CBDT

The CBDT issued Order No. 370142/41/2022-TPL dated September 26, 2022, which extends the deadline for submitting a modified Income Tax Return (“ITR”) in Form ITR-A by a successor company under Section 170A of the Income Tax Act, 1961 (“the IT Act”) from September 30, 2022, to March 31, 2023.

With effect from April 1, 2022, the Finance Act of 2022 has inserted section 170A in the Income Tax Act of 1961 (“the Act”) relating to the effect of a tribunal or court order in respect of business reorganization, which provides that entities undergoing such business reorganization may furnish a modified return of income for any assessment year to which such order of business reorganization is applicable. The clause also states that such updated returns must be submitted within six months after the end of the month in which the competent body issued the order of business reorganization.

 

itr

 

Form ITR-A has been notified in accordance with notification G.S.R. 709(E) dated September 19, 2022, and will be effective on November 1, 2022. This has, however, shortened the time available for submitting updated returns for successor firms in cases where the competent authority’s order of business reorganization was issued between April 1, 2022, and September 30, 2022.

 

Read More: 5 Ways To Save Income Tax

As a result, in order to address this genuine hardship and provide adequate time for furnishing returns under section 170A of the Act, the Board hereby provides that for successor companies in cases where the competent authority issued an order of business reorganization between April 1, 2022, and *September 30, 2022, the time available to furnish modified returns under section 170A of the Act shall be extended to March 31, 2023.

5 Ways To Save On Your Income Tax

There is one aspect that all earning people have in common, regardless of where they come from, where they reside, or where they work: tax. The principal source of money for the government is taxation. It is what pays for the construction of roads and other critical infrastructure. It pays for LPG and food subsidies and ensures the nation’s economic growth and development. However, there are alternatives for consumers to save money on their income taxes. Ordinary folks are often looking for methods to save money on their taxes. Here are five methods for lowering your income tax:

1. Medical Insurance

Any responsible adult must have health insurance. The pandemic that most of us survived over the last two years has brought this fact to the forefront of our minds. You never know when an illness will strike you. You can deduct up to 25,000 in premium payments from your taxable income each year. This means that if your taxable income is $500,000 and you pay a $10,000 annual premium for health insurance, you may simply deduct this amount from your total due. You will only be required to pay tax on $4,90,000.

 

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2. Life Insurance

In terms of tax savings, life insurance products provide a double benefit. To begin, you are excused from paying premiums. Second, the money you receive at maturity is tax-free. You can deduct up to 1.5 lakhs from your annual premium payments. This implies that any premium you pay is deducted from your tax liability. The tax payment is based only on the leftover amount.

3. Investing

Regardless of how appealing equity investments are, they do not provide tax benefits. If you’re making a lot of money in the stock market, the government will want a piece of the pie. However, there are some mutual funds that can provide you with tax advantages. Mutual funds such as ELSS (Equity-Linked Saving Scheme) enable deductions of up to 1.5 lakhs. Long-term capital gains tax is likewise not applicable to these products. In this instance, whatever profit you make will be fully tax-free.

If your profits for the year are less than 1 lakh, you can simply claim exemptions from long-term capital gains tax on conventional equities investments and other mutual funds.

 

income tax

 

4. Government Schemes

PPF, EPF, NPS (Everything You Need to Know About National Pension System (NPS) Scheme), and other government schemes are examples. These are effectively tax-free investment vehicles created by the government. You can also claim deductions of up to 1.5 lakhs in this case. However, there is a lengthy lock-in time in this scenario. PPF, for example, has a 15-year lock-in period. You will not be able to access the amount invested until the lock-in period expires.

Read More: GST Council Meeting – October Reschedule.

5. Loans

Certain types of loans are eligible for substantial tax breaks. Home loans, in particular, provide the most perks and exemptions. You can claim deductions for both the principal and the interest payment. The highest exemption permitted per year is 1.5 lakhs.

Exemptions for education debts are also available. There are no exemptions for other sorts of loans. There are other tax-saving strategies, but these are by far the most common.

CBDT notifies Rules for E-Filing of Income Tax Return by Successor Entity to a Business Reorganization in Form ITR-A

  • 20 Sep 2022
  • Income Tax, ITR
  • Comments Off on CBDT notifies Rules for E-Filing of Income Tax Return by Successor Entity to a Business Reorganization in Form ITR-A

The Central Board of Direct Taxes (CBDT) has published modified regulations that include a new provision Rule 12AD for the return of income reported in Form ITR-A by a successor firm to a business reorganization.

According to Rule 12AD, “the modified return of income to be given by a successor entity to a business reorganization, as described to in section 170A, for an assessment year shall be in the Form ITR-A and validated in the manner prescribed therein.”

(2) The income return referred to in sub-rule (1) must be submitted electronically using a digital signature. (3) If the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the order of business reorganization applies have been completed or are pending on the date of furnishing the modified return in accordance with the provisions of section 170A, the Assessing Officer shall either pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment or proceed to complete the assessments.

 

e filing

 

The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats, and standards for ensuring secure data capture and transmission, as well as being responsible for developing and implementing appropriate security, archival, and retrieval policies in relation to furnishing the return in the manner specified in sub-rule (2).’

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

These regulations may be referred to as the Income-tax (31st Amendment) Rules, 2022. (2) They will become effective on November 1st, 2022.