CBDT refunds Rs 67,401 crore to over 23.99 lakh taxpayers between April 1 to August 16

CBDT refunds Rs 67,401 crore to over 23.99 lakh taxpayers between April 1 to August 16

Between April 1 and August 16, the Central Board of Direct Taxes awarded refunds totalling Rs 67,401 crore to over 23.99 lakh Indian taxpayers, according to the Income Tax Department of India.

Income tax refunds totalling Rs 16,373 crore have been issued in 22,61,918 cases, while corporate tax refunds totalling Rs 51,029 crore have been awarded in 1,37,327 cases, according to the I-T Department.

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“Between April 1 and August 30, 2021, the CBDT issues refunds of over Rs. 67,401 crore to over 23.99 lakh taxpayers. In 22,61,918 cases, income tax refunds of Rs 16,373 crore were provided, while corporate tax refunds of Rs 51,029 crore were issued in 1,37,327 cases “India’s Income Tax Department sent out a tweet.

 

Between April 1 and August 16, the agency claimed it has provided income tax refunds totaling Rs 49,696 crore to more than 22.75 lakh people.

 The Central Board of Direct Taxes deals with matters related to levying and collecting Direct Taxes and formulation of various policies related to direct taxes.

CBDT is a part of Department of Revenue in the Ministry of Finance. They provides inputs for policy and planning of direct taxes in India, and is also responsible for administration of direct tax laws through the IT Department.

The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes. Historical Background of C.B.D.T

 

The Central Board of Direct Taxes issued refunds of over Rs 67,401 crore to over 23.99 lakh Indian taxpayers between April 1 and August 16, the Income Tax Department of India said on Saturday. 

The I-T Department also stated that income tax refunds totaling Rs 16,373 crore were issued in 22,61,918 cases, while corporate tax refunds totaling Rs 51,029 crore were issued in 1,37,327 cases.

NRI status & Taxable Income in India effective from FY2020-21

NRI status & Taxable Income in India effective from FY2020-21

For non-resident Indians (Indian citizens or Persons of Indian Origin (‘PIO’) who have been residing outside India), until March 31, 2020, NRIs who visited India could stay in India up to 181 days in a financial year and still could maintain “Non-resident” status in India.

The Finance Act, 2020 and the Finance Act 2021 (assented by the President on 28 March 2021) have made far-reaching changes regarding the determination of the residential status of NRIs for the financial year ended March 31, 2021, and March 31, 2022. This change will directly impact the NRI community.

Highlights:-

⦁ Visiting NRIs whose total income (which is defined as taxable income) in India is up to Rs 15 lakh during the financial year will continue to remain NRIs if the stay does not exceed 181 days, as was the case earlier.

⦁ Dividends distributed by Indian companies would be taxable in the hands of the shareholders and as such, would form part of the taxable income. On the other hand, since interest on FCNR and NRE deposits are exempt it will not form a part of taxable income. This amendment is effective from the financial year 2020-21, viz. April 1, 2020, to March 31, 2021.

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⦁ An individual whose taxable income exceeds Rs 15 lakh and stays in India for 120 days or more (but less than 182 days) and is treated as a resident individual will still be treated as “Resident but Not Ordinarily Resident (RNOR)”. In the case of RNOR individuals, the foreign income (i.e., income accrued outside India) shall not be taxable in India. Foreign sources mean income that accrues or arises outside India (except income derived from a business controlled in or a profession set up in

Scope of taxation in India based on Residential Status

1ROR – Resident and Ordinarily Resident,
RNOR – Resident and Not Ordinarily Resident and
NR – Non-Resident

Way forward :

NRIs need to carefully consider the total Indian income and plan their travel itinerary based on the amendment for their period of stay.

The Finance Ministry distributes Rs 13,386 crore to 25 states as an RLB award.

The positive aspect is that in most cases, NRIs can continue to visit India for up to 181 days in the financial year and even in other cases where the period of stay in India is 120 days up to 181 days (and also for 365 days or more in preceding 4 years) or more or in case of Indian citizens who are not tax residents of any other country and are deemed to be tax residents of India, the status would be RNOR (if their Indian Income exceeds INR 15 lakhs) and hence foreign income shall not be taxable in India.

How to maximise your tax saving by choosing the right insurance policy for yourself & family?

How to maximise your tax saving by choosing the right insurance policy for yourself & family?

The purpose of purchasing insurance is to provide the maximum level of assurance. Insurance is a legally binding agreement between the insurer and the insured that provides the best possible care to the insured, depending on the policy acquired. The fundamental need is to ensure that you and your loved ones are always safe, regardless of the circumstances.

Income tax deductions under sections 80D and 80C

Purchasing insurance coverage has numerous financial advantages. Aside from the extensive coverage provided by insurers, there are other tax advantages. Who doesn’t want the opportunity to save more money? Sections 80D and 80C of the Income Tax Act provide opportunities to save money on insurance.

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Section 80C contains a comprehensive list of investments for which you can claim a tax deduction when filing your taxes. Employee Provident Funds, Public Provident Funds, Life Insurance, Infrastructure Bonds, and so on are examples of these. These plans and investment opportunities have been listed, and you can pick the one that best suits your needs.

The tax benefits available to you under Section 80D of the Income Tax Act are based on the health insurance premiums you may have paid during the fiscal year. One of the most significant types of insurance is medical insurance. It assures that you are protected in the event of an accident or hospitalisation. The most important feature of a health insurance policy is cashless hospitalisation, which ensures that you receive the best treatment possible without delay.

Insurance policies for you and your family

Choosing the right insurance coverage is critical, and it should be done after evaluating all of your needs and variables. If you have dependents, the policy should include coverage for them as well. In such instances, a family insurance policy is preferable to an individual policy for everyone because it is less expensive and offers more advantages.

Life insurance policy for a better tomorrow

A life insurance policy is a contract that specifies that if the insured person dies, the insured’s family will get a specific amount of money. When the insured passes away, the family is taken care of. This assures that the family will not be short on cash and will be able to take their time to simplify their lives.

Health insurance policy

Health insurance comes in a variety of forms and can be tailored to meet the needs of persons with known pre-existing conditions. The premiums paid might be deducted from your taxes.

Packages are available based on the insured’s age, and benefits are available appropriately. The inclusion of OPD for the younger generation, while families or young couples benefit from maternity coverage. The elderly receive benefits tailored to their needs, such as reimbursement for alternative treatments like AYUSH, no room rent capping, and so on. When you get health insurance for yourself and your family, including your elderly parents, you can get a tax deduction of up to 1 lakh rupees.

FSDC meeting on September 3; to assess the economy and financial industry.

For a better life, get term insurance coverage.

Term insurance is a contract that promises to compensate the insured’s family in the event of the insured’s death. The difference between life insurance and term insurance is that with term insurance, you can only collect the money if the insured passes away. Term insurance has reduced premiums, but the insurer has no financial liability after the term ends, regardless of the date of death.

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