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31 MarBlogTax Planning

What all you need to file ITR 2024-25

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Individual Taxpayers’ Pre-Requirements for FY 2023–2024 Income Tax Return Filing (AY – 2024–25)

First of all, for individual taxpayers in India, filing income tax returns (ITRs) is a crucial yearly duty that guarantees compliance to tax laws and regulations while disclosing their earnings and tax liabilities. In order to accelerate the filing process and prevent any errors or delays, taxpayers need to make sure they have all the necessary requirements in place. The main requirements for individual taxpayers filing their income tax returns for the fiscal year 2023–2024 (AY – 2024–25) will be covered in this article.

  1. PAN Card: In India, filing income tax returns requires a Permanent Account Number (PAN). Before starting the ITR filing process, taxpayers must make sure they have a valid PAN card issued by the Income Tax Department. It’s crucial to update the information with the appropriate authorities if there are any changes or inconsistencies with the PAN details.
  2. Aadhar Card: In accordance with the Income Tax Act, taxpayers must link their Aadhaar card to their PAN. To prevent any issues when submitting, taxpayers should make sure that their Aadhaar card is connected to their PAN. Also, the Aadhaar card is essential to the tax return’s e-verification. Code for e-verification of ITR shall be sent only to mobile no. linked with Aaadhar no. So before filing ITR make sure your mobile no. is linked with Aadhar and it is active.
  3. Form 16: Employers provide employees with this important form, which records their income from salary, deductions, and TDS (tax deducted at source) for the financial year. Before completing their tax returns, taxpayers should get Form 16 from their employers by the deadline and confirm the information provided.
  4. Form 26AS: This is a combined statement that shows all tax-related data, including advance tax payments made by the taxpayer throughout the financial year and TDS and TCS (Tax Collected at Source). It is important that taxpayers check Form 26AS to make sure the tax credits they claim on their returns are correct.
  5. Bank Statements: In order to file income tax returns, bank statements for each savings and current account held throughout the financial year are a necessity. To ensure thorough reporting of financial transactions in their tax returns, taxpayers should assemble their bank statements and reconcile their income, expenses, and investments.
  6. Investment Proof: Taxpayers should save documentation of their investments if they have made them in tax-saving schemes like Equity Linked Savings Schemes (ELSS), Public Provident Funds (PPF), Life Insurance Premium, Home Loan Repayment and Provident Funds (PF). To claim deductions under different provisions of the Income Tax Act, these documents will be required.
  7. Other Income Documents: Taxpayers who get income from sources other than salaries, such as capital gains, rental income, interest income, etc., are required to keep the records confirming their income. In order to prevent penalties or notice from tax authorities, it is necessary that all sources of income be correctly reported on the tax return.

    In summary, ensuring compliance to tax rules and regulations starts with making sure all the requirements are followed in order to file income tax returns. Individual taxpayers can accelerate the filing procedure and accurately record their income and tax liabilities for the financial year 2023–24 (AY 2024-25) by getting necessary documents such as bank statements, investment proof, Form 16 and 26AS, Aadhaar card, PAN card, and other income documents.
    To prevent last-minute rushes or mistakes during the filing process, taxpayers should begin collecting these prerequisites well in advance. To further streamline the procedure and guarantee proper and timely submission of income tax returns, tax specialists can be consulted or online tax filing platforms can be utilised.

THETAXSEVA.COM is here to assist and help you to understand the complex ITR filing procedure in simple way, please feel free to connect with us.

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18 JunBlog

The Alarming Consequences of Not Filing Your Income Tax Return: Are You at Risk?

by taxseva0 Comments

Are you still waiting to file ITR on the last day fixed for filing ITR ? Are you the person who prioritises ITR filing over other chores on the last date?
But have you ever thought what will happen if a taxpayer does not file an income tax return ??

Actually, there are various consequences for not filing an ITR. I will try to make you familiar with the effect of not filing your income tax return at all or within due date.

 
 
Individuals having an annual income not exceeding Rs.2.5 lakhs are not required to file an ITR except in certain cases. So if total income of an individual does not exceed Rs.2.5 lakhs and the exceptions are not applicable to them, there will be no consequences of non-filing.
The tax department may ask you to file u/s 142(1) even if ITR is not required to file as per the above provision.
In case of failure to file ITR when it’s required or u/s 142(1) below Penalty and Interest may be attracted:
Interest @1% u/s 234A shall be recovered if any unpaid tax liability for the respective year and are filing return beyond due date (i.e belated return).
Penalty amounting to Rs.5000/- u/s 271F may be imposed by the tax department not filing of ITR timely.
 
 

Following Penalty provisions may also attract –

If an individual fails to file ITR by the due date ( i.e 31st July or 30th Sep), but return is filed within 31st Dec following late fees shall be applicable :
â€Ē Individuals earning a gross income of up to â‚đ 2.5 lakh are exempt from any penalties.
â€Ē Individuals earning a gross income between â‚đ 2.5 lakh and â‚đ 5 lakh will incur a penalty of â‚đ 1,000.
â€Ē Individuals earning a gross income exceeding â‚đ 5 lakh will be liable for a penalty of â‚đ 5,000.
Example: ITR filed on 30 Nov 2024 then the penalty amount shall be Rs. 5000/- if your income exceeds Rs. 5 lakhs or Rs. 1000/- if your income is below Rs. 5 lakhs.
 
 

Non filing of ITR may attract Notice – Sec 142(1)

If ITR is not filed or due date missed, then the Income Tax Department can ask to furnish it through a notice under section 142(1).
 
 

Sec 144 – Best Judgement Assessment

In case ITR is not filed, Income Tax Department may assess income and proceed with the computation of tax liability in the manner as deemed fit by the income tax officer. And, a notice for best judgement assessment shall be served upon. This is to give a fair chance to explain the unavoidable reasons for the delay or non-filing of income tax return.
 
 

Difficulties in loan approval, credit card and other credit facilities

Wherever filed ITR becomes a documentary need for the process of loans, credit card or other credit facilities, Individual may face a situation due to non-filing of ITR.
 
 

Loss of Refunds and Deductions:

By not filing tax returns, the opportunity to claim refunds and deductions that could reduce tax burden shall not be available. This results in missed opportunities to optimize your tax planning.
 
 

Opportunity to carry forward of losses

Carry forward of losses for the current year shall only be available if income tax return is filed.
Many a times a taxpayer thinks that if taxes are already paid no need to file income tax returns or similarly if post deduction of investment income becomes lower than Rs. 2.5 lakhs no need to file ITR. Paying taxes or making adequate investments never relieves from filing of ITR within due date

We suggest please make sure filing of ITR within due date to escape from above consequences.

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14 JunBlog

Maximize Your Tax Savings: Strategies Beyond Section 80C

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Discover lesser-known tax-saving opportunities to reduce your taxable income and keep more of your hard-earned money

Planning your taxes is a crucial part of personal finance, and you may increase your net income by making the most of your tax savings. Although Section 80C of the Indian Income your Act provides a deduction of up to â‚đ1.5 lakh, there are further options available to further reduce your liability. Here, we look at other options outside Section 80C for the fiscal year 2023-24 that can help you save additional money on taxes.

Section 80CCD(1B): Additional Deduction for NPS

National Pension System (NPS) contributions are covered under Section 80C, an additional deduction of â‚đ50,000 is available under Section 80CCD(1B). This deduction is over and above the â‚đ1.5 lakh limit under Section 80C.

Section 80D: Health Insurance Premiums

Under Section 80D, you can claim deductions for health insurance premiums paid for yourself, your spouse, children, and parents. The deduction limits are as follows:
  • Up to â‚đ25,000 for premiums paid for yourself, spouse, and children. (Mode of payment restricted to other than cash)
  • An additional â‚đ25,000 for insurance premiums for parents, which increases to â‚đ50,000 if your parents are senior citizens. (Mode of payment restricted to other than cash)
Moreover, an additional deduction of â‚đ5,000 is available for preventive health check-ups, making this an effective way to save on taxes while securing your family’s health. For this additional deduction you are allowed to make payment through any mode as you wish.

Section 80E: Interest on Education Loan

Education loans interest paid is deductible under Section 80E. There is no upper limit on the amount of interest you can claim as a deduction. The deduction is available for a maximum of eight years or until the interest is fully paid, whichever is earlier. This benefit is applicable for loans taken for higher education for yourself, your spouse, children, or a student for whom you are a legal guardian.

Section 80G: Donations to Charitable Institutions

Under Section 80G, donations made to certain approved charitable institutions and relief funds are eligible for tax deductions. The deduction can be either 50% or 100% of the donated amount, depending on the institution. However, the overall deduction should not exceed 10% of your gross total income. This not only helps reduce your tax liability but also allows you to contribute to societal welfare. To avail this deduction you must ensure that charitable institutions and relief funds are registered with income tax and approved. Make sure to receive proper receipt of donation which must mention PAN no. of charitable institution and their registration no.

Section 80GG: House Rent Paid

If you do not receive a House Rent Allowance (HRA) from your employer and still pay rent, you can claim a deduction under Section 80GG. The deduction amount is the least of the following:
  • â‚đ5,000 per month.
  • 25% of your total income (excluding capital gains).
  • Actual rent paid minus 10% of your total income.
To claim this deduction, you need to satisfy certain conditions, such as not owning a residential property in the place where you reside and work.
If the total rent paid during financial year is Rs. 1 lac or more then PAN no. of landlord must be obtained.

Section 80TTB: Interest on Deposits for Senior Citizens

For senior citizens, Section 80TTB provides a deduction of up to â‚đ50,000 on interest income from savings accounts, fixed deposits, and recurring deposits with banks, post offices, or cooperative societies.
 
Make sure to stay updated with any changes in the tax laws and consult a tax advisor to optimize your tax-saving strategy for the financial year 2023-24.
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11 AprBlogTax Planning

Choose the Right Method of ITR filing for Your Needs

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Exploring Tax Filing Options: Choose the Right Method of ITR filing for Your Needs

Filing income tax returns is an essential task for every taxpayer, ensuring compliance with tax laws and regulations while maximizing tax benefits. With advancements in technology taxpayers now have multiple options for filing their income tax returns. We have tried to jot down various methods of filing income tax returns and help you choose the right option as per your convenience.

1. Offline Filing: Traditional offline filing is almost eliminated and now a day’s offline filing has different meaning to it. Offline filing means you can download applicable excel offline tool from income tax portal https://www.incometax.gov.in/iec/foportal/ and fill up all the details online in excel tool. Once you are done with all details punching into excel utility you can generate json file which you need to upload and everify through income tax portal. 

2. Online Filing: e-filing is known as online filing, it has become the popular and preferred method for most taxpayers due to its convenience and efficiency. There are several options for e-filing :

a. Income Tax Website: Taxpayers can visit the Income Tax Department’s official website ( https://www.incometax.gov.in/iec/foportal/ ) and e-file their returns using the available forms and tools. This method is free of cost and provides a user-friendly interface for filing returns.

b. Private E-filing Intermediaries: Private websites and online platforms, offer e-filing services for a fee.

c. Mobile Apps: The Income Tax Department also offers mobile apps 

(aaykar Setu App) for e-filing, allowing taxpayers to file their returns using smartphones or tablets. 

3. Tax Filing Software: Tax software are normally used by professionals or tax consultants to manage and file bulk ITRs. Tax filing software offer comprehensive solutions for preparing and filing income tax returns. These software packages come with advanced features, including automatic form filling, tax optimization, and real-time support, making them ideal for individuals with complex tax situations or multiple income sources.

Choose the Right Method for Your Needs: When deciding on the method of filing income tax returns, consider factors such as convenience, accuracy, cost, and level of assistance required. While offline filing may be suitable for some individuals, online filing and tax filing software offer greater efficiency and flexibility, especially for tech-savvy taxpayers or those with complex tax situations.

For reliable and hassle-free tax filing solutions, consider availing the services of The TaxSeva. As a trusted provider of ITR filing and other tax solutions, The Tax Seva offers expert assistance, personalized guidance, and seamless e-filing experiences to help taxpayers meet their compliance requirements and maximize tax benefits.

 
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24 FebBlogTax Planning

PAN no. of Banks and Providers of Finance

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In the world of finance, every transaction carries a significant risk of fraud especially through online platform. Whether it’s a bank disbursing a loan or an individual applying for credit, the need for accurate identification is paramount. PAN numbers serve as a vital tool for banks and loan providers, offering a multitude of benefits that contribute to the integrity and transparency of the financial system. Through PAN no. at least you can cross verify the identity of your loan provider.

Here are the lists of PAN no. of some Banks and loan providers for your reference.

List Of Banks / Provider of FinancePAN No.
Aadhar Housing FinanceAAICA4667N
Andhra Pradesh Grameena Vikas Bank (APGVB)AAAJA1351N
Andhra Pragathi Grameena Bank (APGP)AAMFA8921A
Axis Bank LimitedAAACU2414K
Bank of Baroda (BoB)AAACB1534F
Bank of India (BoI)AAACB0472C
Bank of Maharashtra (BoM)AACCB0774B
BMW India Financial Services Private LimitedAADCB8986G
Canara BankAAACC6106G
Canfin Homes LimitedAAACC7241A
Central Bank of IndiaAAACC2498P
CITI BankAAACC0462F
City Union Bank LimitedAAACC1287E
Dahod Urban Co.op. Bank Ltd.AAAAT2915L
DCB Bank LimitedAAACD1461F
DECCAN GRAMEENA BANK / TELANGANA GRAMEENA BANKAAAAD3893M
Deutsche BankAAACD1390F
Dewan Housing Finance Corporation Limited (DHFL)AAACD1977A
FEDERAL BANKAABCT0020H
GIC Housing Finance LimitedAAACG2755R
GRUH FINANCE LTD.AAACG7010K
Haryana Gramin BankAAKAS1464M
HDFC Bank LimitedAAACH2702H
Himachal Pradesh State Cooperative Bank Limited (HPSCB)AABFH7694E
Housing & Urban Development Corporation Ltd.AAACH0632A
Housing Development Finance Corporation Limited (HDFC)AAACH0997E
ICICI Bank LimitedAAACI1195H
ICICI Home Finance Company LtdAAACI6285N
IDBI Bank LimitedAABCI8842G
India Infoline Housing Finance LtdAABCI6154K
Indiabulls Housing Finance LimitedAABCI3612A
Indian BankAAACI1607G
Indian Overseas Bank (IOB)AAACI1223J
Indusind Bank LimitedAAACI1314G
ING VysyaAABCT0529M
J&K Grameen BankAAAAJ7859H
Jharkhand Gramin BankAAAAJ3908R
Kangra Central Cooperative BankAAAJT0749B
Karur Vysya Bank (KVB)AAACH3962K
Kotak Mahindra Bank LimitedAAACK4409J
Kurukshetra central Coop. Bank Ltd.(KCCB)AAAAT2371G
L&T FinCorp LimitedAAACI4598Q
L&T Infrastructure Finance Company LimitedAABCL2283L
LIC Housing Finance Limited (LICHFL)AAACL1799C
PNB Housing Finance LimitedAAACP3682N
Power Finance Corporation LimitedAAACP1570H
Punjab & Sind BankAAACP1206G
Punjab National Bank (PNB)AAACP0165G
Ratnakar / RBL Bank LtdAABCT3335M
Reliance Home Loan Finance LimitedAAECR0305E
Saraswat Co-Op. Bank LtdAABAT4497Q
sardar bhiladwala pardi peoples co.op.bank ltdAABAS4480Q
Standard Chartered BankAABCS4681D
State Bank of Bikaner and Jaipur (SBJJ)AADCS4750R
State Bank of Hyderabad (SBH)AADCS4009H
State Bank of India (SBI)AAACS8577K
State Bank of Mysore (SBM)AACCS0155P
TATA Capital Housing Finance LtdAADCT0491L
TATA Capital LtdAADCP9147P
TATA Motors Finance LimitedAACCT4644A
The Hazaribag Central Co-operative Bank Ltd.AABTT0908K
The Hongkong & Shanghai Banking Corporation LimitedAAACT2786P
The Karnataka Bank LimitedAABCT5589K
The South Indian Bank LimitedAABCT0022F
UCO BankAAACU3561B
Union Bank of IndiaAAACU0564G
United Bank of India (UBI)AAACU5624P
YES Bank LimitedAAACY2068D

(For accurate and up-to-date information, it’s recommended to refer to official RBI publications or databases.)

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