CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases |

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

category

Key JSON Schemas for ITR-1 and ITR-4 Issued by Income Tax Department for Assessment Year 2024-25

editor — Tue, 19 Mar 2024 05:43:06 +0000

ITR-1 Schema:

The Income Tax Department has recently unveiled the JSON Schema for ITR-1 for the Assessment Year 2024-25, corresponding to the Financial Year 2023-24.

This schema caters to individuals who are residents (excluding not ordinarily residents) with a total income of up to Rs. 50 lakh. It applies to individuals with income from salaries, one house property, other sources (such as interest), and agricultural income up to Rs. 5 thousand.

ITR-4 Schema:

The Income Tax Department has also released the JSON Schema for ITR-4 for the Assessment Year 2024-25, corresponding to the Financial Year 2023-24.

Designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships) who are residents and have a total income of up to Rs. 50 lakh. This schema is applicable to those with income from business and profession computed under sections 44AD, 44ADA, or 44AE, along with agricultural income up to Rs. 5 thousand.

ITR-1 Schema:

Document: https://www.nyca.in/wp-content/uploads/2024/03/ITR-1_2024_Main_V1.0.zip

Date of Initial JSON Schema Release: 18th March 2024

ITR-4 Schema:

Document: https://www.nyca.in/wp-content/uploads/2024/03/ITR-4_2024_Main_V1.0.zip

Date of Initial JSON Schema Release: 18th March 2024

Source: IncomeTaxPortal

category

GSTN Issues Important Advisory on GSTR-1/IFF: Introduction of New Tables 14A and 15A

editor — Tue, 12 Mar 2024 10:36:12 +0000

An advisory, Advisory No. 627 dated March 12, 2024, has been issued by the GSTN regarding the introduction of new Tables 14A and 15A in GSTR-1/IFF.

According to Notification No. 26/2022 – Central Tax dated December 26, 2022, two new tables, Table 14A and Table 15A, have been introduced in GSTR-1 to capture the amendment details of supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 or liable to pay tax under section 9(5) of the CGST Act, 2017. These tables are now live on the GST common portal and will be available in GSTR-1/IFF from the February 2024 tax period onwards. These amendment tables are relevant for taxpayers who have reported the supplies in Table 14 or Table 15 in earlier tax periods.

Table 14A allows suppliers to amend the details of original supplies reported under sections 14(a) and 14(b) in earlier return periods, while Table 15A enables e-commerce operators to amend the details of original supplies reported under four sections in earlier return periods.

Key features of the new tables include auto-population of amended taxable values to GSTR-3B, auto-population of amended taxable values and tax liabilities to GSTR-3B, manual addition of e-invoices related to 9(5) supplies, and reporting of amendment of debit or credit notes related to services notified under section 9(5) in existing Table 9C of GSTR-1/IFF.

Additionally, a new table called “ECO – Documents (Amendment)” is being added in GSTR-2B for registered recipients who are making supplies through e-commerce operators. This table allows registered recipients to view the amended document details of supplies made through e-commerce operators on which the e-commerce operator is liable to pay tax under section 9(5) of the Act.

The values will be auto-populated from Table 15A to the new ECO – Documents table of GSTR-2B.

For further details, the advisory can be accessed at: https://www.gst.gov.in/newsandupdates/read/627

category

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.

category

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

category