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Income Tax Returns: Over 800,000 Filed for AY 24-25

editor — Thu, 09 May 2024 04:39:51 +0000

Introduction

The process of filing income tax returns is crucial for individuals and entities to fulfill their fiscal obligations. With the commencement of Assessment Year 2024-25, taxpayers are swiftly embracing the opportunity to submit their returns and comply with regulatory requirements.

Current Status of Income Tax Returns

As of May 5, an impressive figure of approximately 829,000 income tax returns has been filed for AY 24-25, according to data provided by the Central Board of Direct Taxes (CBDT). Of these filings, 750,000 have been verified by taxpayers, with 510,000 already processed by the department.

Facilitating Taxpayers with E-Filing Portal

To streamline the filing process, CBDT has made commonly used forms such as ITR-1, ITR-2, and ITR-4 available on the e-filing portal since April 1. Additionally, companies can file their ITRs using ITR-6 from the same date, providing taxpayers with convenient options for compliance.

Expectations for Increased Filings

Experts anticipate a surge in filings in the coming weeks as more taxpayers capitalize on the opportunity to submit their returns. While some choose to file early to avoid last-minute rush, others may wait until June to receive TDS certificates from employers and banks.

Implications and Challenges Ahead

Despite the encouraging numbers, the current filings represent only a fraction of the total returns filed for AY 23-24, indicating a need for increased awareness and compliance. The CBDT continues its efforts to improve taxpayer compliance and timely filing to alleviate pressure on the IT portal.

Source: https://www.businesstoday.in/personal-finance/tax/story/over-800000-it-returns-filed-so-far-for-ay-24-25-428609-2024-05-07

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Income Tax Alert: 5 High-Value Transactions That May Come Under Scrutiny

editor — Sat, 20 Apr 2024 10:59:44 +0000

In recent times, a misconception has been prevalent among the people regarding the traceability of cashless transactions by the Income Tax Department (ITD). However, contrary to popular belief, the ITD utilises advanced tools to scrutinise transactions, leaving no room for evasion. Transactions exceeding specified thresholds, whether through card payments, UPI transactions, or cash deposits and withdrawals, are promptly reported to the tax offices by banks and financial institutions.

Leveraging sophisticated data analytics, the income tax department verifies this information with various sources, constructing a detailed financial profile to detect any disparities between declared income and expenses. The ITD’s proactive measures in scrutinising financial transactions underscore the government’s commitment to combating tax evasion and promoting transparency.

Triggering Scrutiny: Common Transactions Flagged by ITD

Large Cash Deposits: Any cash deposit exceeding Rs 10 lakh in a financial year across savings accounts draws the attention of the income tax department. Even if deposits are spread across multiple accounts, the cumulative amount beyond the threshold triggers scrutiny.

Fixed Deposits: Surpassing the Rs 10-lakh limit in fixed deposits within a financial year prompts inquiries regarding the source of funds, aligning with efforts to prevent tax evasion. If you deposits over Rs 10 lakh in FDs, the tax department may inquire about the source of the money, if needed.

Investments in Securities: Cash investments in shares, mutual funds, and bonds exceeding Rs 10 lakh may lead to tax notices, highlighting the importance of transparency in financial dealings.

Credit Card Bill Payments: Cash payments towards credit card bills exceeding Rs 1 lakh are subject to scrutiny, highlighting the need for clarity on the source of funds.

Property Transactions: Property acquisitions above Rs 30 lakhs mandate disclosure of the fund’s origin, with stricter thresholds in certain regions, aiming to curb tax evasion and money laundering.

Compliance Measures and Consequences

Ensuring compliance with tax regulations is paramount to avoid penalties and investigations. Proper documentation substantiating the source of funds, including bank statements and investment records, is crucial when addressing ITD inquiries.

Expert Recommendations

Tax experts states the importance of aligning tax returns with income and expenses to prevent unwarranted scrutiny. Transparent disclosure of financial activities ensures compliance with tax laws, fostering a culture of accountability and integrity in financial dealings.

Source: https://news.abplive.com/business/personal-finance/income-tax-alert-i-t-notice-5-high-value-transactions-that-may-come-under-i-t-scrutiny-1680700

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Income Tax Department Cracks Down on Unfiled Returns: 1.52 Crore Individuals Targeted

editor — Mon, 15 Apr 2024 04:21:28 +0000

Large Discrepancy Between Taxpayers and Filed Returns

The Income Tax Department is launching a campaign to target individuals who haven’t filed their income tax returns (ITR) despite meeting filing requirements. According to a report in the Economic Times, the department has identified 1.52 crore such individuals.

Data Discrepancies Trigger Action

This initiative stems from a data analysis by the Central Board of Direct Taxes (CBDT) which revealed a significant gap between the total number of taxpayers (8.9 crore in financial year 2022-23) and the number of ITRs filed (7.4 crore, including revised returns). This suggests that potentially 1.97 crore individuals might not have filed their returns even though tax was deducted at source (TDS) from their income.

Focus on High-Value Transactions

The I-T Department is particularly interested in individuals with high bank transactions linked to their PAN cards. Officials will be contacting these individuals to explain the importance of filing ITRs. Additionally, the CBDT has identified nearly 9,000 potential taxpayers who might have made high-value purchases or cash deposits and will be sending them tax notices.

Consequences for Non-Compliance

Individuals who deliberately neglected to file returns will face penalties. However, those with genuine reasons for the sudden increase in income can submit an explanation or file a return to rectify the situation.

Data Analytics Boosts Tax Collection

The Income Tax Department’s access to a vast amount of data has proven instrumental in identifying non-filers and uncovering inconsistencies. This focus on data analysis is credited with contributing to a significant rise (19.88%) in net direct tax collection, exceeding ₹18.90 lakh crore as of March 17th.

Source: https://www.hindustantimes.com/business/it-department-to-tap-1-52-crore-individuals-for-income-tax-return-filing-heres-why-101713003056572.html

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CBDT Urges Officers to Identify Top 30 Cases of TDS Shortfall by June 30, 2024

editor — Wed, 10 Apr 2024 05:13:23 +0000

The Central Board of Direct Taxes (CBDT) has instructed income tax officers to scrutinize the top 30 cases of insufficient tax deduction at source (TDS) and resolve at least 150 appeals by the Commissioner of Income Tax before June 30, 2024.

These directives are outlined in the interim action plan released by the CBDT for the fiscal year 2024-25, delineating the primary focus areas for field formations.

According to a recent communication from the CBDT to its officials, specific Key Result Areas have been identified for timely accomplishment, alongside attending to statutory limitation matters.

The CBDT routinely issues interim action plans to its officials at the onset of each financial year, refining them later in the year to form the final plan.

Additionally, the CBDT has called for seminars and awareness campaigns to be conducted on TDS. Over the years, TDS has emerged as a significant revenue source for the government, surging from Rs 2.13 lakh crore in FY13 to Rs 8.17 lakh crore in FY23.

As part of its interim plan for the current fiscal, the CBDT has also mandated the immediate approval of all pending refunds withheld under Section 241(A) once scrutiny assessments are completed and requisite orders are passed, either immediately or by April 30, 2024.

Furthermore, the CBDT has directed that all information requested by enforcement agencies such as the CBI, SEBI, and Enforcement Directorate before March 31, 2024, must be shared by the end of April. For requests received after April 1, information should be provided within 15 days.

Field officers are also tasked with identifying cases where seized assets are due for release as per Section 132B and facilitating their release by June 30, 2024.

Source: Business Today

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