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Income tax refund will be available soon and the seized properties will also be returned

editor — Sat, 13 Apr 2024 10:52:23 +0000

If you pay tax then it is a matter of relief for you. The Income Tax Department will dispose of the appeals related to TDS payment and tax from the current financial year i.e. 2024-25 as soon as possible. With this you will also get income tax refund soon. The department is preparing an action plan for this, which will be implemented soon. The Central Board of Direct Taxes (CBDT) has asked the Income Tax Department to prepare an action plan by which possible tax-related issues are identified and resolved immediately. In this scheme, there will be a fixed time limit for returning the seized property. The department said that such properties will be returned by June 30, 2024. It aims to finalize pending compounding proposals by March 31, 2024, and dispose of at least 150 appeals by June 30.

You can file a case before the Assessing Officer: Under the new decision of the Income Tax Department, taxpayers will now have to file an application for pending refund before the Assessing Officer. Processing of applications for nil/reduced TDS or TCS certificates under section 195/197/206C will be expedited. They will be resolved within a month of receipt of applications from April 1, 2024.

Priority for disposal of appeals filed before April 1, 2020: The department said that disposal of appeals filed before April 1, 2020 will be given priority. After this, appeals filed after April 1, 2020 will be disposed of. This decision is an important step towards increasing administrative efficiency. Immediate measures have been initiated for resolution of complaints through e-redressal and CPGRAMS platforms.

Source: https://www.internationalnewsandviews.com/income-tax-refund-will-be-available-soon-and-the-seized-properties-will-also-be-returned/

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7 Alternative Tax-Saving Avenues Besides Section 80C for FY 2023-24

editor — Sat, 30 Mar 2024 11:45:35 +0000

Introduction:

Beyond Section 80C, there exist numerous avenues for tax savings. In FY 2023-24, explore various deductions such as NPS contributions, health insurance premiums, medical expenses, home loan interest, electric vehicle purchases, charitable donations, savings account interest, and tax rebates. These deductions effectively lower taxable income, leading to significant tax savings.

Tax Saving with NPS (Section 80CCD (1B)):

Investing up to Rs. 50,000/- in NPS offers additional tax savings, augmenting benefits available under Section 80C. Moreover, NPS contributions can be utilized within the Rs. 1,50,000/- limit of Section 80C, resulting in a total deductible amount of Rs. 2,00,000/-.

Tax Savings on Health Insurance Premiums (Section 80D):

Section 80D allows deductions for health insurance premiums paid for self, family, and parents, along with medical expenses up to Rs. 25,000/- and Rs. 50,000/- respectively. This provision extends to preventive health check-ups.

Tax Savings on Medical Expenses towards Disabled Dependent (Section 80DD):

Under Section 80DD, deductions of Rs. 75,000/- or Rs. 1,25,000/- (for severe disability) are available irrespective of expenses incurred for a disabled dependent.

Deduction in Respect of Interest on Loan Taken for Residential House Property (Section-80EE):

First-time home buyers can claim deductions under Section 80EE for interest paid on home loans, capped at Rs. 50,000/- per annum.

Deduction in Respect of Purchase of Electric Vehicle (Sec-80EEB WEF AY 2020-21):

Interest on loans taken to purchase electric vehicles is deductible up to Rs. 1,50,000/-, subject to conditions.

Donations to Charitable Institutions (Section 80G):

Donations made to approved charitable institutions are eligible for deductions under Section 80G, with categories offering 50% or 100% deductions.

Interest on Saving Bank Accounts (Section 80TTA / 80TTB):

Interest earned on savings bank accounts is deductible up to Rs. 10,000/- per annum, and for senior citizens, up to Rs. 50,000/-.

Rebates (Section 87A):

Individual residents with total incomes not exceeding Rs. 5,00,000/- are eligible for tax rebates up to Rs. 12,500/- or 100% of the income tax, whichever is less.

Conclusion:

By exploring these alternative tax-saving options, individuals can effectively reduce their tax liabilities for FY 2023-24. Leveraging deductions on NPS, health insurance, medical expenses, home loans, electric vehicles, charitable donations, savings accounts, and rebates optimizes tax planning strategies, leading to maximized tax savings.

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Validity of Assessment Orders in Light of Assessee’s Response

editor — Wed, 27 Mar 2024 07:01:20 +0000

The Delhi High Court, in the case of Emco Cables Pvt. Ltd. v. Union of India [W.P. 1622 of 2024, February 27, 2024], addressed the issue of the validity of an assessment order when the Assessee’s response hadn’t been duly considered. The court emphasized the importance of taking into account the Assessee’s reply before issuing an assessment order. It was highlighted that if further details were needed, it was the responsibility of the Revenue Department to request them from the Assessee.

Facts of the case:

The case stemmed from a Show Cause Notice (SCN) dated September 24, 2023, issued by the Revenue Department against Emco Cables Pvt. Ltd. The notice accused the Assessee of under-declaring output tax, claiming excessive Input Tax Credit (ITC), and claiming ITC from canceled dealers and non-taxpayers. The Assessee responded to the notice with a detailed reply. However, the subsequent order dated December 29, 2023 (Impugned Order), found the Assessee’s reply unsatisfactory and directed further action without adequately considering the response.

Issue:

The central issue revolved around whether an assessment order lacking consideration of the Assessee’s response could be deemed valid.

Held:

The Delhi High Court’s ruling in W.P. 1622 of 2024 outlined the following key points:

Emphasized the obligation of the Proper Officer to thoroughly assess the Assessee's reply before forming an opinion on its sufficiency.
Noted the failure of the Proper Officer to seek additional details from the Assessee if deemed necessary, rather than dismissing the response outright.
Criticized the lack of evidence suggesting that the Proper Officer had indeed reviewed the Assessee's submission.
Set aside the Impugned Order and remanded the case back to the Proper Officer for reconsideration.

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A Closer Look at the Significant Tax Adjustments Coming into Force on April 1, 2024

editor — Tue, 26 Mar 2024 07:04:10 +0000

April 1 signifies the start of a fresh fiscal year and holds great importance for personal finances, as many income tax adjustments from the Budget come into effect on this date. Additionally, various other alterations are also implemented, potentially influencing individual financial situations. These modifications were unveiled by Finance Minister Nirmala Sitharaman during her Budget speech this year. Let’s delve into some significant changes you need to know, such as the widened basic exemption thresholds, among others.

New Tax Regime Default Adoption

The default choice of the new tax regime is a significant alteration aimed at simplifying tax filing and encouraging more people to opt for the new regime.
The new regime offers reduced tax rates but fewer deductions and exemptions.
Taxpayers still have the option to continue with the old tax regime if it suits them better.

Elevated Basic Exemption Limit and Rebate

Effective from April 1, 2023, the basic exemption limit was raised to ₹ 3 lakh from ₹ 2.5 lakh under the new tax regime.
The rebate under Section 87A of the Income Tax Act, 1961, was increased to ₹ 7 lakh from ₹ 5 lakh.
Individuals with a taxable income up to ₹ 7 lakh under the new regime will receive a full tax rebate, exempting them from paying any income tax.

New Tax Slabs

Income between ₹ 3 lakh and ₹ 6 lakh will be taxed at 5%.
Income between ₹ 6 lakh and ₹ 9 lakh will be taxed at 10%.
Income between ₹ 9 lakh and ₹ 12 lakh will be taxed at 15%.
Income between ₹ 12 lakh and ₹ 15 lakh will attract a 20% tax.
Income above ₹ 15 lakh will be taxed at 30%.

Restoration of Basic Deduction

Reduced Surcharge

Life Insurance Taxation

Exemption of Enhanced Leave Encashment

Source: https://www.ndtv.com/india-news/new-tax-rules-to-come-into-effect-from-april-1-all-you-need-to-know-5283150

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Assessee is entitled to interest from the date immediately after the expiry of sixty days from the date of receipt of the GST refund application

editor — Tue, 26 Mar 2024 06:28:11 +0000

The Hon’ble Delhi High Court, in the case of Raghav Ventures vs. Commissioner of Delhi [Writ Petition (Civil) No. 12209 of 2023 dated March 01, 2024], held that the payment of 6% interest under the Section 56 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) is statutory and does not depend if the claim made by the Assessee. It is automatically payable if the GST refund is not made within 60 days from the date of receipt of the application.

Facts of the case:

Raghav Ventures, referred to as “the Petitioner,” engaged in exporting mobile phones and accessories to M/s AZ Logistic, Dubai, UAE, and paid Integrated Goods and Services Tax (IGST). The normal procedure for claiming GST refunds involved submitting shipping bills, which Customs processed through ICEGATE.

In December 2022, exports amounted to Rs. 9,06,49,174/- with IGST payment of Rs. 1,63,16,851/-. In February 2023, exports totaled Rs. 2,80,38,271/- with IGST payment of Rs. 50,46,889/-. Similarly, in March 2023, exports amounted to Rs. 95,90,489/- with IGST payment of Rs. 17,26,288/-, and in May 2023, exports of mobiles and accessories worth Rs. 76,96,568/- were made, with IGST payment of Rs. 13,85,382/-.

According to Sub-Rule (2) of Rule 96 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”), export invoice details from Form GSTR-1 are electronically transmitted to Customs. Once the system confirms export, GST refunds are processed through ICEGATE under Rule 96(3) of the CGST Rules.

The Petitioner submitted GST returns in Form-GSTR-3B and refund applications for the mentioned periods via Form-GST-RFD-01. Acknowledgments were received via Form-GST-RFD-02, confirming receipt of the GST refund applications.

While the writ petition was pending, the IGST refund for the period was credited to the Petitioner’s bank account on December 4, 2023, without any interest. On December 6, 2023, the Petitioner applied to the Special Commissioner, Department of Trade & Taxes (“the Respondent”), seeking 6% interest from the refund application date until December 3, 2023.

Therefore, aggrieved by these circumstances, the present writ petition was filed, requesting the Respondent to grant the total IGST refund of Rs. 2,44,75,410/- for the tax periods of December 2022, February 2023, March 2023, and May 2023, along with interest as per Section 56 of the CGST Act.

Issue:

Does the Assessee have a statutory entitlement to interest on delayed GST refunds?

Held:

The Delhi High Court, in Writ Petition (Civil) No. 12209 of 2023, ruled as follows:

It was observed that interest payment under Section 56 of the CGST Act is mandatory and not contingent upon the Assessee's claim. It automatically becomes due if the GST refund is not issued within 60 days from the date of application receipt. Denial of GST refund based on waiving interest claims in FORM GST-RFD-01 is unjustifiable. Additionally, interest is only applicable if the refund isn't granted within 60 days from the application date, making interest payment obligatory and automatic.
It was also noted that Circular No. 125/44/2019-GST dated November 18, 2019, clarifies that interest calculation starts from the day immediately following the 60-day period from the application receipt until the amount is credited to the applicant's bank account.
The court held that the Petitioner is entitled to statutory interest at a rate of 6%, starting from the day immediately following the expiry of the 60-day period from the application receipt until the refund is credited to the Petitioner's bank account. The Respondent was instructed to process the refund of interest and credit it to the Petitioner's account within four weeks. Consequently, the petition was resolved along with the pending application.

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GST Application to Educational and Allied Services

editor — Fri, 22 Mar 2024 07:40:25 +0000

Exploring GST Implications on Educational Services

Are you operating a bus transport service catering to schools for student transportation? Wondering about GST applicability on such services? Let’s delve into the specifics of GST laws concerning educational services and allied sectors.

School Transport Services:

According to GST law, specified in Notification 12/2017, no GST is applicable on transportation services provided by an educational institution or to an educational institution for the conveyance of its students, staff, and faculty members.
This exemption encompasses all educational institutions offering services from preschool education up to higher secondary school or its equivalent.
Hence, there's no requirement to levy GST on school bus services extended to transport students, staff, and faculty members.

Understanding GST on Miscellaneous Educational Services

Contemplating enrolling in a French language course at a foreign language school in India? Curious about the GST implications on course fees? Let’s clarify the scenario.

Foreign Language Course:

Deciphering GST on Specialized Coaching Services

Considering enrolling your child in cricket coaching at a private sports coaching center? Puzzled about the GST imposition on coaching fees? Let’s unravel the situation.

Sports Coaching Services:

Analyzing GST on Private Tuition

Are you a student seeking private tuition for Mathematics and Science subjects? Unsure about the GST applicability on tuition fees? Let’s analyze the scenario.

Private Tuition Services:

Educational Service	GST Applicability
School Transport	No GST
Foreign Language	18% GST
Sports Coaching	GST applies
Private Tuition	18% GST (if turnover exceeds threshold)

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Optimizing Tax Planning with Political Party Donations

editor — Fri, 22 Mar 2024 07:21:06 +0000

The difference between tax saving and tax evasion becomes apparent when individuals seek deductions under sections 80GGB/80GGC of the Income Tax Act 1961 for contributing funds to a political party or an electoral trust.

Eligibility for Deductions

Deduction Limits

Tax Savings Example

Gross Total Income	Donation Amount	Deduction Claimed	Tax Savings
Rs. 10,00,000/-	Rs. 2,00,000/-	Rs. 2,00,000/-	Substantial

Risks of Bogus Donations

Consequences of Failure to Prove Genuineness

Steps to Prove Genuineness

Obtain Registration Certificate: Confirm party registration under section 29A.
Verify on Official Website: Check legitimacy on eci.gov.in.
Request PAN Card: Obtain PAN of the political party.
Cross-Verify Bank Details: Use cancelled cheque.
Get Stamped Receipt: Ensure a physical receipt from the party.

Supporting Documentation

Conclusion

Donating to political parties can offer tax benefits but requires careful consideration, documentation, and compliance to avoid penalties. Proper evidence is crucial to substantiate the genuineness of the transaction.

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