Vipin Sanger

The closure of every Financial Year (FY) and the commencement of the next is the time when most individuals think about their income tax obligations. For FY 2019-20 things have become more complex given the lockdown situation. Investing to save taxes, filing belated income tax returns of FY 2018-19 or revising income tax return to amend or rectify an error in previously filed tax return for FY 2018/19 and budgeting for FY 2020-21, are some of the pressing issues for an individual taxpayer. It is important for taxpayers to understand the impact of the relaxations announced by the government. The major relief has been in the form of extension of due dates for filing income tax returns belated or revised for FY 2018-19, and providing additional time for investing in tax relief eligible investments for FY 2019-20. The due date is now June 30, 2020 for all of this. 1. Investments for the FY 2019-20 Individuals can now use the extended window up to 30 June, to make tax saving i...

When an earning individual goes for income tax return (ITR) filing , his or her major focus should get on reducing the tax outgo because a penny saved may be a penny earned. If you're a methodical person, you'd realize the foremost basic tax-saving investment option - Section 80C of the tax Act, 1961. Being one among the foremost popular tax-saving options, most people claim deductions under this section to lower their taxes. It facilitates deductions of up to Rs 150,000 once a year. However, this might not be adequate which means you've got to require subsequent step and appearance at tax-saving benefits beyond Section 80C limit. 1. Section 80C of tax Act As per the tax Act, 1962; there are certain clauses that provide tax-saving investments beyond the utmost limit available under Section 80C. These tax-saving investment options assist you to scale back the tax burden considerably. Tax and investment experts say that these investment options will have a positive...

CBIC said that it is fully committed to helping the GST taxpayers in the present COVID-19 situation. Since 30th March 2020, CBIC has processed 12,923 refund applications involving claims amounting Rs. 5575 Cr. While in the last week itself, CBIC has processed 7,873 claims worth Rs. 3,854 Cr. CBIC said that a trade and business-friendly measure taken by CBIC as they have issued a "Circular No. 133 dated 31.03.2020" to help GST returns filers to facilitate early ITC refunds and to ensure that the wrong ITC claims are not processed in the absence of relevant information, is misconstrued in certain sections of social media and other media as troubling the taxpayers in COVID -19 like situation. CBIC said that this measure was taken into effect with GST Council’s approval in its 39th Meeting held on 14.03.2020 mitigate delays in refunds faced by the taxpayers besides ensuring that wrong ITC claims are not processed. It had been brought to the notice of GSTC by various ...

FY2019-20 ITR filing deadline may be extended as Form 16 deadline put off to June 30, 2020. Various income tax-related deadlines for the taxpayers are extended to June 30, 2020 via an ordinance dated March 31, 2020 by the govt thanks to the impact of the corona virus lock-down. As per most chartered accountants the deadline for employers to issue the TDS certificate i.e. Form 16 for FY 2019-20 to employees also extended to June 30, 2020. It would be difficult for workers to file their tax returns by July 31, the traditional deadline for many individuals to file ITRs, if they get their salary TDS certificates as late as June 30. Consequently, it's likely that the deadline of July 31 to file ITRs would even be extended. This has also been the trend whenever the deadline to issue Form 16 has been extended in past years. As per tax laws, the last date for filing TDS returns for an employer is May 31 and Form 16 has got to be issued latest by June 15, unless the date is...

Inform employer of your choice of tax regime else old rates apply for TDS from salary. If you wish to opt for the new income tax regime , you will have to inform your employer through the declaration form. The employer will start deducting tax at source (TDS) accordingly for each month of financial year. Employers will soon start rolling out investment declaration forms, asking employees to indicate their choice of tax regime. The government had introduced a revised tax system in this year's Budget, wherein taxpayers would be given the option to shift to a new tax regime with lower tax rates, but without the usual tax exemptions and deductions . The Central Board of Direct Taxes issued a circular on April 13, 2020, directing all employers to obtain a declaration from employees if they wish to choose new tax regime. If you wish to opt for the  new income tax regime , you will have to inform your employer through the declaration form. The employer will start deducting...

From FY 2020-21, an individual taxpayer will have an choice to choose from existing and new tax regime. so as to understand which tax regime is useful for an individual, it's important to understand what proportion are going to be the liabilities in both regimes. From April 1, 2020, an individual taxpayer will have the choice either to continue with the prevailing tax regime or choose the new tax regime sans 70 tax exemptions and deductions. Salaried individuals, having no business income, will need to choose from the prevailing and new tax regimes in coming fiscal year, as per their convenience. On the opposite hand, those that have business income should carefully evaluate whether or not they want to continue with the prevailing tax regime or choose the new tax regime. This is often because once they choose the new tax regime, then they will switch back to the prevailing tax regime just one occasion during a lifetime. To choose between the new and existing tax str...

On 8 April, the govt had announced that processing of pending tax refunds of up to five lakh are going to be expedited to supply taxpayers some relief amid the covid-19 lockdown. Sharing the update on 15 April, the Central Board of Direct taxes (CBDT), in press release, had said that it had issued over 10.2 lakh refunds totaling around 42.5 billion until 14 April. These refunds were over and above the 2.50 crore refunds, worth 1.84 trillion, issued till 31 March. The CBDT had also said that Rs. 1.75 lakh more refunds were in the process of being issued. These refunds would be credited to the taxpayers' bank accounts with in 5-7 business days from issuance. Are you wondering why haven't you received your tax refund yet despite having filed your returns within the maturity for assessment year (AY) 2019-20? CHECK STATUS: If you've got not received your tax refund yet, first check your email to ascertain if there's any communication from the income-tax de...