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CBDT notifies changes in ITR Form V and Acknowledgement for AY 2024-25

editor — Thu, 28 Mar 2024 10:28:31 +0000

The CBDT, through Notification No. 37/2024 dated March 27, 2024, has introduced revisions to the ITR form V and Acknowledgement for Assessment Year 2024-25. These changes align with amendments made in the Income Tax Act, 1961, and the Income Tax Rules, 1962, following the Finance Act, 2023.

For further details, the full notification can be viewed at: https://www.nyca.in/wp-content/uploads/2024/03/CBDT_37-2024-27.3.2024.pdf

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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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Interim Budget Updates to Goods and Services Tax

editor — Sat, 16 Mar 2024 12:18:54 +0000

The announcement of GST Amendments in the Interim Budget brings forth significant changes in the taxation landscape, marking a pivotal moment for both businesses and individuals. As Budget Day approaches each year, the anticipation surrounding potential benefits and programs heightens among the populace. This year, in light of the upcoming elections, the Interim Budget for 2024 has replaced the traditional full budget, with the Finance Minister, Smt. Nirmala Sitharaman, unveiling a slew of schemes and welfare programs aimed at pleasing the masses. Dubbed the “Developed India Budget 2024,” the central focus of this budget aims to propel India towards economic advancement.

Key Changes in GST as per Interim Budget:

Key Considerations:

In Summary:

The GST Amendments in the Interim Budget signify a concerted effort by the government to streamline compliance and extend support to targeted industries. Emphasizing the adoption of digital solutions, these measures aim to instill stability and foster investment amid uncertain times, ultimately contributing to a resilient economy that benefits all stakeholders. While these changes are temporary, further developments are anticipated in the upcoming full budget, with the current focus geared towards bolstering businesses and driving growth.

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Update on Option to File ITR-U Under Section 139(8A) of IT Act

editor — Sat, 09 Mar 2024 05:28:40 +0000

The Income Tax Department has released a recent update, dated March 7, 2024, regarding the provision to submit an Updated Income Tax Return (ITR) under section 139(8A) of the Income Tax Act, 1961. This provision allows individuals to file an updated return for any assessment year within twenty-four months from the end of the relevant assessment year, irrespective of their previous filing status. Form 61 must be used for filing the updated return.

Under section 139(8A) of the Income Tax Act 1961, any person, whether or not they have previously filed a return under subsections (1), (4), or (5), can file an updated return for an assessment year (referred to as the relevant assessment year) for their income or income of any other assessable person, within the specified timeframe.

However, certain conditions apply:

The provision does not apply if the updated return results in a loss, decreases the total tax liability determined based on the original return, or increases the refund due.
Individuals cannot file an updated return if certain circumstances are present, such as a search initiated under section 132, a survey conducted under section 133A, or if they have received notices related to seized assets or documents.
No updated return can be furnished if proceedings for assessment, reassessment, or any other related process are pending or completed for the relevant assessment year.
Further, if the person has sustained a loss in any previous year and has filed a return of loss within the prescribed time, they are allowed to file an updated return.
Additionally, if there are any adjustments to losses carried forward or unabsorbed depreciation in subsequent previous years due to the filing of an updated return, a return must be filed for each subsequent previous year.

These provisions aim to streamline the process of filing updated returns and ensure compliance with the Income Tax Act.

For detailed information, individuals can refer to the Income Tax Portal.

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CBDT Introduces Key Changes to Income-tax Rules: Fourth Amendment Rules, 2024

editor — Wed, 06 Mar 2024 12:11:45 +0000

In a move aimed at streamlining tax compliance and ensuring transparency, the Central Board of Direct Taxes (CBDT) has issued Notification No. 27/2024 dated March 05, 2024, notifying the Income-tax (Fourth Amendment) Rules, 2024. These amendments, made to the Income-tax Rules, 1962, bring significant updates to various forms and deduction rules under the Income-tax Act, 1961.

Key Changes and Updates

1.) Form No. 3CD:

The amendment introduces new clauses for adjustments concerning sections 115BAA, 115BAC, and 115BAD for specific assessment years. These adjustments aim to ensure accurate reporting of income under different tax regimes.
Additionally, adjustments regarding expenditures in violation of the law have been incorporated into Form No. 3CD, enhancing scrutiny of expenses claimed by taxpayers.

2.) Form No. 3CEB:

3.) Form No. 65:

Source: https://www.nyca.in/wp-content/uploads/2024/03/CBDT-Notification-No.-27-2024-05.03.2024.pdf

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