What happened to my IT refund?

What happened to my IT refund?

In India, I am a self-employed individual with a salary. In addition, I work as a content writer for a Geneva-based nonprofit. It is not deductible for tax purposes. What should I do with this money?

It is presumed that you do not pay taxes on the same income in any other country.

Furthermore, if you are an ordinary resident of India, the income you receive from the Geneva organization for content writing will be taxable in your hands. The contractual agreements, periodicity of revenue, volume of transaction for which you receive income, and other factors will all influence how the income is classified. If it is determined that you and the Geneva organization have an employer-employee relationship, the income you receive will be subject to taxation as salary income. If, on the other hand, the contractual structure is based on professional fees,  the income received by you shall be taxed as income from business or profession.

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If the income is in the type of professional income, the applicability of tax rates (i.e. normal or presumptive), GST, the obligation of keeping books of accounts, tax audit, and so on should all be considered, based on the gross receipts / income level. You must pay tax on the aforesaid income using the prescribed advance tax instalments/self-assessment tax.

I filed my ITR exactly as per AS for AY 2021-22 and requested a refund, but the IT department took less TDS as mentioned in 26AS and provided less refund. How can I find out why my refund was reduced, and can I get the whole of my money back?

We’ve assumed that you’ve received notice under section 143(1) of the Income-tax Act, 1961 (the Act), and that the tax authorities (Centralized Processing Centre) have calculated a lesser income tax refund than you claimed in your tax return for AY 2021-22. In general, the explanatory table in the aforementioned intimation lists the details of TDS credit claimed vs. TDS credit examined by the tax authorities (i.e. information of matched vs. unmatched TDS claim). You can use the information in the table, as well as the computation provided in the notification, to figure out why the refund was reduced.

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Furthermore, if the mistake is clear from the record, you should make an online rectification application under section 154 of the Act against the abovementioned intimation in order to obtain the remaining refund. For the purpose of filing the stated online rectification application, you may refer to the online rectification user manual available on the income tax portal. The tax authorities will issue the remainder refund once the rectification application has been handled properly.

If the issue is not remedied through the above rectification request, other options such as appeals and grievances may be considered, subject to the time limits.

The govt has extended the deadline for filing corporate ITRs for FY21. 15th of March, tax audit report due by February 15th

  • 12 Jan 2022
  • Income Tax, ITR
  • Comments Off on The govt has extended the deadline for filing corporate ITRs for FY21. 15th of March, tax audit report due by February 15th

The govt has extended the deadline for filing corporate ITRs for FY21. 15th of March, tax audit report due by February 15th

The deadline for corporations to file Income Tax Returns (ITR) for the fiscal year ending March 2021 was extended by the government on Tuesday until March 15.

The deadline to submit a tax audit report and a transfer pricing audit report for the fiscal year 2020-21 has also been extended until February 15.

This is the third extension granted to corporations to file their income tax returns for the fiscal year 2020-21. The original deadlines for reporting ITRs for corporations and transfer pricing transactions were October 31 and November 30.

The Central Board of Direct Taxes (CBDT) said in a statement that it has decided to extend the due dates for filing Income Tax Returns and various reports of audit for the Assessment Year 2021-22 due to difficulties reported by taxpayers and other stakeholders due to Covid and in electronic filing of various reports of audit (2020-21 fiscal).

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The tax audit report is due February 15, 2022, and the extended date for filing ITR for corporations is now March 15.

Individual taxpayer have until December 31, 2021 to file their 2020-21 |TRS without penalty, and over 5.89 crore ITP were filed by the deadline.

According to Shailesh Kumar of Nangia &Co LLP, given the difficulty faced by taxpayers in light of the recent surge in Co cases in the country, as well as technical glitches in filing tax audit reports and other compliances related to filing ITR, the government’s extension of around one month for filing tax audit reports and extension of 15 days for cases covered by Transfer Pricing compliances is a welcome move that will provide relief to taxpayers.

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The finance ministry has finally granted the request to give taxpayers and audit experts more time to complete the tex filings, according to AMRO & Associates senior partner Rajat Mohan, and it considers the challenges identified by tax professionals owing to Covid.

“For all business taxpayers, this will be a significant relief. Individuals in the salaried class and MSME non-auditable non-corporate firms, on the other hand, have received no assistance “Mohan continued.

It should be noted, according to Taxmann DGM Rahul Singh, that if the tax amount exceeds Rs 1 lakh, no exemption from the interest applicable under section 234A has been provided. Thus, if the taxpayer’s self-assessment tax liability exceeds Rs 1 lakh, he will be required to pay interest under section 234A from the time the original due dates have passed.

5 investment techniques that exploit income tax regulations for smart tax savings

5 investment techniques that exploit income tax regulations for smart tax savings

You may use these five tax hacks to save money on your taxes.

Investors have no control over earning better returns. They can, however, take actions to reduce their tax liability. Smart investors can take advantage of and reduce their tax bills thanks to income tax legislation. These aren’t methods of tax evasion; rather, they assist in tax avoidance through the judicious application of tax laws’ provisions. The five tactics listed below can help you save money on taxes without breaking the law.

Invest in the NPS rather than an annuity.

NPS can help you save money on taxes in three ways. First, NPS contributions are tax deductible under Section 80C. If the Rs 1.5 lakh limit under Section 80C has been reached, a further deduction of up to Rs 50,000 can be claimed under Section 80CCD (1b). Finally, under Section 80CCD, you can deduct up to 10% of your base wage if you contribute to the NPS (2). If your firm offers the NPS benefit, those who are near to retirement might claim even higher tax benefits. Up to 10% of the basic salary placed into the NPS by the firm on behalf of the employee is tax-free under Section 80CCD(2).

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The amount withdrawn will not be tax-free in its entirety. Despite the fact that the tax regulations make no mention of it, it is reasonable to presume that 60% of the withdrawn funds will be tax-free, while the other 40% will be taxed at the standard rate.

If you pay rent to your parents, HRA may be tax-free.

If the parent owns the property, a person living with her parents can pay them rent and claim HRA exemption. Even at the highest 30 percent tax bracket, the arrangement makes sense because rental income is subject to a 30 percent standard deduction. Section 80GG allows for a monthly rent exemption of up to Rs 5,000. The rent that the parent receives will, of course, be taxed.

If the rent exceeds Rs 1 lakh per year, the landlord’s PAN number must be provided for claiming HRA exemption. If the landlord lacks a PAN, he must make a declaration to that effect. The taxpayer must be able to show evidence of the transaction. You also can’t claim HRA exemption if you pay rent to your spouse or minor child.

Invest in the name of the housewife’s wife.

Money donated to the homemaker wife for personal costs is not subject to the clubbing rule, which means that if the woman invests with this money, her earnings will not be combined with the husband’s. According to experts, clubbing occurs only at the lowest income levels. If the earnings are reinvested, the money is treated as if it came from the wife alone. If the wife invests the gift money in tax-advantaged choices like stocks and equities funds, the husband would not be taxed on long-term capital gains of up to Rs 1 lakh per year, and that sum will be recognised as the wife’s income.

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Senior citizens can benefit from a tax break.

In the case of parents and grandparents, there is no income sharing. If either of your parents is over the age of 65 and does not have any investments, you can invest in their name and earn tax-free interest. Adults over the age of 60 are entitled to a Rs 3 lakh basic exemption. Senior adults (over the age of 80) get a greater basic exemption ceiling of Rs 5 lakh. The Senior Citizens’ Saving Scheme, which now pays 7.4% interest, and the Pradhan Mantri Vaya Vandana Yojana are also good investments.

Giving money to an adult child and investing in his name can save you money on taxes, but be cautious. A gift is irreversible, and there is no going back once it has been given. If the child is financially irresponsible, you could lose 100% of the principal in your endeavour to save 20-30% tax.