Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
PrintListen to this Article
https://youtu.be/bbla_-LmrJQ
A cavalier attitude towards filing of income tax returns (ITRs), complete with fake rent receipts from close relatives, extra claims against home loans, false donations and a slew of dodgy practices encouraged by some of the tax practitioners with a promise to slash tax outgo and prop up refund, may come back to haunt many, particularly salaried individuals.
Unlike in the past when it was easier to escape the glare of the tax office, many may run out of luck now as their returns are red-flagged by softwares used by the revenue department.
According to industry circles, notices are being served by the Income tax (I-T) department asking assessees to produce documentary proof for claiming exemption.
These notices are for exemptions under house rent allowance under section 10 (13A) for salaried individuals; allowance under section 10 (14) for hiring a helper to perform official duties; or deduction under section 24 (b) of the I-T Act for interest paid on home loans.
The notices, pertaining to assessment years 2022-23, were issued as per section 133(6) of the law which empowers the tax assessing officer to call for information of certain details of transactions done during a particular year.
"We understand the tax department is doing a 360 degree profiling of individuals based on ITR data together with information collated from external sources (including verifications from filers) to examine the genuineness of claims. Data mining and analytics along with seamless flow of information is helping,
"According to CBDT's directions outlined in the Central Action Plan for FY24, field officers have to leverage the best use of technology to widen the tax base. Not only taxpayers indulging in such practices but even people assisting them could be covered under the wider umbrella of prosecution allowed by the I-T law.
So, individual taxpayers have to be more cautious in filings and lodge only genuine claims. Adverse actions (particularly prosecutions) could pose several challenges for taxpayers including the risk of losing jobs as many employers and corporates tend to treat prosecution matters very differently. This may also help the government in nudging more and more individual taxpayers to migrate to a simpler regime of a lower tax rate with least possible exemptions / deductions on the lines of similar regimes implemented for corporates in the last few years."
CLICK ON THE LINK FOR COMPLETE VIDEO,
https://youtu.be/bbla_-LmrJQ
Category : Income Tax | Comments : 0 | Hits : 336730
As many as 5,44,205 appeals were pending resolution with the Income Tax (IT) Department at commissioner (appeals) level as of January 31 this year, and 63,246 at various Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court, FE has learnt. To be precise, the cases pending in ITATs were 20,266 High Courts, 37,436; and Supreme Court 5,544. The large pendency is even as the Central Board of Direct Taxes (CBDT) has laid emphasis on disposing of income tax appeals in its 10...
The Central Board of Direct Taxes (CBDT) has facilitated taxpayers to file their Income Tax Returns (ITRs) for the Assessment Year 2024-25 (relevant to Financial Year 2023-24) from 1st April, 2024 onwards. The ITR functionalities i.e. ITR-1, ITR-2 and ITR-4, commonly used by taxpayers are available on the e-filing portal from 1st April, 2024 onwards for taxpayers to file their Returns. Companies will also be able to file their ITRs through ITR-6 from April 1 onwards. As ...
It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that the new regime under section 115BAC(1A) was introduced in the Finance Act 2023 which was as under as compared to the existing old regime (without exemptions): New Regime 115BAC (1A) introduced for FY 2023-24 Existing old Regime 0-3 lacs 0% 0-2.5 lacs 0% ...
The income tax department on Sunday said it has started sending emails and SMSs to assessees whose taxes paid during the current fiscal are not commensurate with financial transactions. To flag the mismatches in payment of taxes in financial year 2023-24 (assessment year 2024-25) and the financial transactions made by persons or entities, the Income Tax Department has started sending emails and messages through SMSs to assessees. The tax department on Sunday urged assesses, who have not pa...
Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in specified sub-clauses of section 10 (23C) of the Income-tax Act, 1961 (the ‘Act’) or any trust or institution registered under section 12AA/12AB of the Act is exempt, subject to fulfilment of certain conditions specified under various sections of the Act. Finance Act, 2023 provided that donations made by a trust...
Comments