Even though expectations for the Union Budget are rising each year, they won’t all be met for a variety of reasons, most of which they are most familiar with: they aren’t a priority, aren’t necessary for this fiscal year, need more research, can’t be used to offset the revenue loss, aren’t growth-oriented, and so on.
Income Tax
A Single Return Form
The CBDT’s announcement recently that there will be only one Form of Return as opposed to several forms is a positive development. However, in my opinion, this Form shouldn’t have all the pages from the preceding Forms. Otherwise, the new form would be over 100 pages, making the entire exercise a huge waste of time. In addition, I anticipate that the new form won’t require any extra information that isn’t asked for on the older ones. The optimal length of this form is one page.
Residential Status Recently,
If students who are going abroad for higher education spend more than 182 days away from India, they are still considered residents under the second condition of spending more than 365 days in India within the previous four years. As a result, for income tax purposes, everyone is a resident throughout their first year of study.
Now, if they decide to take on some minor projects for teaching, working at a cash register, or other part-time employment that will pay for their study-related expenses or a tiny percentage of their earnings to make up for it and lessen their parents’ financial burden. Due to the fact that all of this income is resident, it is all taxable. Additionally, if relevant, the information in Schedule FA, A1 through G, must be filled out.
The government shouldn’t, in my opinion, aim to increase its revenue from these students because it isn’t really an income at all, but rather a way to ease part of a load of expenses, and those who are wealthy might not be able to work to earn money abroad.
The government shouldn’t want to increase its revenue from these students because it isn’t really an income at all but rather a way for people to offset some of their expenses; those who are wealthy might not be able to work abroad.
The second requirement of spending 365 days in India in the four years prior shouldn’t apply to bona fide students who have moved overseas for higher education. Bonafide University for Higher Studies students should be classified as non-residents in the first year if they are absent from India for 182 days or more. This will keep them on par with FEMA.
Permit them to finish their further education, earn more money, and ultimately significantly contribute to their country.
Filing of Return
started submitting a return for a CAB driver who makes Rs. 25000 per month, or Rs. 300000 per year. Data in 26AS, TIS, and AIS is NIL.
He must respond or provide information regarding the next.
- Whether a Director, Partner, Unlisted Equity Shares, Beneficial Owner of Asset, Income, or Signing Authority outside of India at any time during the Previous Year.
- If the assessee is only disclosing income pursuant to Section 44AE and the remaining amounts pursuant to Section 44, then extra audit information is required (2).
- Whether he is using his choice under Section 2A of Section 92 CE in the TPSA’s General Information schedule.
- Basic Information Business type, GST information, and profit and loss account.
- If income exceeds Rs. 250 000, maintaining accounting records is required; else, returns would be invalid.
The burden of many facts in the Income Tax Return Form is not lessened by the advancements in the system and information collected from various agencies, such as 26AS, TIS, AIS, and so on.
Only two details need to be filled out if there is no information in 26AS, TIS, or AIS: income and business type, and PAN. While preparing the New One Form of Return, this should also be taken into account.
Sec 115BAC
Availability of the New Tax Rates
Currently, only taxpayers who file their returns on time are eligible for this program. He must pay tax at the old rates plus a late fee in accordance with Section 234F after the return filing deadline has passed. I believe that those who file documents beyond the deadline yet still want to fulfill their obligations are being treated unfairly. In addition to paying the increased tax rate, they must also pay a penalty for late filing. There are further prerequisites, such as the need to complete the form and the maximum number of switches permitted.
I anticipate that this budget will eliminate all such requirements for choosing the new tax rate. The duty-bound assessors will receive a double penalty at the flag end in the form of the old tax rate and late payment penalties. If you want to benefit others, do so freely and without conditions.
Due Date of filing and the Data available for return
If the filing deadline is four months after the end of the fiscal year, all forms should be made accessible simultaneously on April 1, the first day of the assessment year. If not, the deadline will be four months from the date that all return forms become available. Decisions on the deadline should wait until the forms are ready.
We can now get away with constantly modifying the filing form schema once the forms are made available and publicized for that assessment year.
notification that the data is being considered for return. The information in the TIS and AIS is subject to change up until the deadline for filing due to the filers’ filing or revision of the AIR. The assessors take into account the information available even though it is not in the TIS when filing the return.
The indication that the information in TIS and AIS would be taken into consideration before one month has passed after the return’s due date, If more information is revealed that the assessors would not have known otherwise, it should be included in the succeeding assessment year or only a small portion of the return should be revised, with one page of revision details to be filled out as needed.
Exemption u/s 54
The cost of medical care has skyrocketed in recent years and is now quite expensive. I blame the average insurance value (cover) by the organizations that supply the treatment for the rise in medical treatment costs rather than the earlier average purchasing power or spending power in society.
The patient frequently has to sell his securities, larger home, investments, etc. in order to pay for medical treatment, in excess of the insurance coverage that is provided.
A person’s primary right is to live, and he or she has the right to do so by using all of the resources available to them. Taxing this right is not a good idea for society.
To the degree that money is spent on medical care, I anticipate that all types of capital gains should be exempt.
Global Income Taxation
It is appropriate time to reevaluate this policy for the bonafide wage earners in tax-free countries given the rising depreciation of the Indian rupee versus the US dollar. I believe that this amendment’s goal is to prevent tax evaders, not tax salary earners. If this is the case, the budget should be amended to state that no tax would be applied to an employee’s salary, regardless of whether they are working under a permit or providing other known, established, and proven services.
No matter how long a resident person lives in India, income from a certificate of salary in a specific format will be exempt from income tax, provided that the salary was earned in foreign currency for services that were provided outside of India.
Spread of the persons who file the returns
As they have wants that go beyond their income and strive to meet them with the resources they have accumulated, it is likewise past due for us to decide who we want to recover taxes from and who we do not expect to pay any.