New Income Tax Regime: Should you opt for it? Here’s all you wanted to know

Income Tax

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Given the conservative nature of the average Indian citizen, the scheme is expected to be popular amongst millennials and may be even with the mid-aged tax payers in a Covid year.



Two things you can never avoid in life – Death and Taxes. Taxes, as much as they are dreaded, are considered inevitable. Across civilizations, taxes have evolved consistently with the provision of public goods like defense, education, healthcare, police, judiciary etc. Over the past couple of centuries, the case for welfare states has driven public policy debates and the need to widen tax base to feed, protect and maintain population has gained prominence.

Personal taxes have been one of the most commonly prevalent options to garner broad-based collection. Globally, in developed nations, nearly a third of their population form their tax, however less than 2% of our population are tax-payers in India. Even though, we have 5.64 cr (AY 2018-19) personal returns filed, only 2.49 crores of them are actually tax-payers.



India’s taxation laws are notorious globally for their ambiguity and the case with personal taxation is no different. We have one of the complex incentive regimes with a plethora of conditional deductions for savings, investment and expenditure. Taking a cue from corporate tax rationalization by her predecessor, our Hon’ble Finance Minister, in her budget speech of 2020, stated, “It was surprising to know that currently more than one hundred exemptions and deductions of different nature are provided in the Income-tax Act. I have removed around 70 of them in the new simplified regime.” Hence a new “simplified” and optional scheme was proposed.

The new “simplified-no frills” scheme provides a 7 Tier slab comprising of:

However, as we are aware, any fiscal concession is saddled with caveats, which, in this case, are:

# Option can be withdrawn only for assessees having business/ profession income. For other assesses, choice can be made at the time of filing each year.

# Non availability of deductions/ exemptions: Any assessee choosing to adopt the scheme, waives their right to claim the following benefits:

i. On salary income: Deduction/exemption for allowances, including standard deduction, except the following;

i. Transport allowance to a physically challenged employee

ii. Conveyance allowance

iii. Any allowance granted to meet the cost of travel on tour or on transfer

iv. Daily allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty



ii. Interest on housing loan in respect of self-occupied or vacant property

iii. Business deductions: Accelerated depreciation and specific deductions for backward areas, scientific research, tea/coffee/rubber, mining, agriculture, SEZs and specified business activities.

iv. Allowances to MPs/MLAs, minors and family pensions

v. All Chapter VIA deductions (like section 80C, 80CCC, 80CCD, 80D, 80DD etc). However, deduction on employer contribution in a notified pension scheme u/s 80CCD(2) and for deduction for new employment u/s 80JJA are still permissible.

 

# No carry forward / set off of losses/ unabsorbed depreciation of any earlier assessment year if it pertains to any of the deductions referred to in the above-mentioned list



 

 

# The scheme is only optional: A tax payer can continue under the existing scheme, if felt appropriate, with all deductions mentioned supra, with the following slabs:

The moot point for any tax payer is, which option to be preferred? If you are an assessee with significant tax saving investments (some of which could be on long-term commitments), past losses or housing loans, the existing option would be rewarding. The scheme shall, however, be beneficial for senior citizens, pensioners and presumptive tax payers u/s 44AD/AE/AF. The choice is case specific and there is no blanket yard stick for selection.

 

With India’s savings to GDP rate hovering around 30% (down from 36% a decade ago), critics argue that the new tax scheme would reduce it further in due course. However, we must give it to the government that this is the lowest tax slab in the foreseeable history. For example, Rs 12 lakh in 2011-12 would have a tax bill (excl surcharge) of Rs 2,18,360 as against Rs 1,19,600 under the new scheme. With prefilled tax data and non-availability of deductions, return filing and e-assessments become a simple automatic process, under this option.



 

The intent behind the effort is laudable. Given the conservative nature of the average Indian citizen, the scheme is expected to be popular amongst millennials and may be even with the mid-aged tax payers in a Covid year. The new scheme has made the tax payer, in charge of the application of his income, which, if we realise, is a powerful proposition. After all, isn’t independence all about having the right to make your own choices?

 

Source: www.financialexpress.com

Income Tax alert! Made high-value transactions? Here is relief for you in filing ITR

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It’s an important update for those Income Tax payers concerned about disclosing high-value transaction in their Income Tax Returns (ITR).

It’s an important update for those Income Tax payers concerned about disclosing high-value transaction in their Income Tax Returns (ITR). According to a latest development, officials in the know of the development have said that taxpayers will not be required to mention their high-value transactions in their income tax returns.



“There is no such proposal to modify income tax return forms,” an official said, responding to reports of the proposed expansion of reportable financial transactions to include hotel payments over Rs 20,000, life insurance premium payment over Rs 50,000 and health insurance premium payment over Rs 20,000, donations and payment of school/college fees over Rs 1 lakh a year, as per a report in news agency PTI.

Any expansion in reporting under the statement of financial transactions (SFT) will mean that such reporting of high-value transactions to the I-T department will be done by financial institutions, they said. Only third parties would report high-value transactions to the I-T department as per the Income Tax Act. Such information would be used to identify people who are not paying up due taxes, and not for examining affairs of honest taxpayers, they said.


“There is no such proposal to modify income tax returns forms,” an official said. “The taxpayer would not need to mention his/her high-value transactions in his/her return.”  They said collecting reports of high-value transactions was the most non-intrusive way to identify those who spend big money on various items and yet they do not file income tax returns by claiming that their income was less than Rs 2.5 lakh per annum.

These items include business class air travel, foreign travel, spending big money in expensive hotels, or sending children to expensive schools.


Finance Ministry sources said the Income-tax Act already provided for quoting of PAN/Aadhaar for certain high-value transactions and their reporting by the third parties mainly for the purpose of widening the tax base. “It’s an open fact that in India, only a tiny segment of people pay taxes and all those who should be paying their taxes are actually not paying their taxes,” PTI reported quoting a source. The I-T Department is relying more and more on voluntary compliance and, hence, expenditure data collected from third parties through SFT is the best and the most effective non-intrusive method to catch evaders, sources said.

The Income Tax Department currently receives information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, among others.


It receives such information “specified persons” like banks, mutual funds, institutions issuing bonds and registrars or sub-registrars with regard to individuals having high-value financial transactions since the financial year 2016 onwards.

In the 2020-21 Budget, the government revised the format of Form 26AS, stating that all such information from different SFTs would be shown in the new Form 26AS. It is an annual consolidated tax statement that can be accessed from the income-tax website by taxpayers using their permanent account number (PAN).

Source: www.zeebiz.com

Avoid these common errors while filing your income-tax return

Income Tax

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If taxes have been paid outside India, then you may also claim foreign tax credit

Homi Mistry


It is that time of the year, when income-tax returns are to be filed. This year the difference being that the tax filing deadline for taxpayers has been extended until November 30, 2020. Since there is more time to file tax returns this year, let us look at how the returns can be filed correctly by avoiding some common errors.

Salary income from outside India

We all are well aware that we get a Form 16 in respect of our salary income and we need to include this income in our tax return. However, what if a taxpayer has worked outside India for a part of the year and his employer was a foreign company? In such a case, the foreign company will not issue any Form 16 but the taxpayer needs to compute income from his foreign tax return / foreign payslips / foreign tax paid certificate and include the same in his India tax return (if he qualifies to be resident and ordinarily resident in India). If taxes have been paid outside India, then he may also claim foreign tax credit, on the basis of the tax return filed in the foreign country, subject to providing necessary documentation.


House property

With effect from financial year 2019-2020, up to two residential house properties can be considered as self-occupied and hence, tax free. However, if a taxpayer owns more than two residential house properties that are not let out, the taxpayer will have to declare the additional house properties as deemed to be let out and offer notional rental income for those properties, to tax.

Capital gains

A taxpayer typically peruses his bank statements to check and ensure that all income he has received during the year has been correctly captured in the tax return. While this is a good practice, it may not reflect income which has not been paid into the bank account but has been reinvested. For instance, the bank account will show the proceeds of mutual fund units redeemed during the year but the switch-outs from one mutual fund and switch-in to another mutual fund will not reflect in the bank statement. A switch-out is also a taxable event and the gain, if any, needs to be duly offered to tax, even though not received in the bank account.

Clubbing of income


It is common practice for parents to invest funds in the name of their minor children or for a working individual to invest funds in the name of his/her spouse. Income from investments made out of a taxpayer’s funds in the name of his spouse or minor children is taxable in his hands. For instance, interest from fixed deposits or capital gains from sale of investments invested by the taxpayer in a minor child’s or spouse’s name, needs to be offered to tax in the tax returns of the taxpayer.

Moreover, any income earned by a minor child should be clubbed in the hands of the parent who earns a higher taxable income, unless the income earned by the minor child can be attributed to his skill, talent or specialised knowledge and experience. An exemption of Rs 1500 is available to the parent, per child, in respect of such clubbed income.

Form 26AS

Form 26AS reflects details of certain income and the corresponding tax deducted at source thereon by payers of such income during a tax year. It also includes details of the advance tax / self-assessment tax paid by the taxpayer for that tax year. When a tax return e-filed by a taxpayer is processed electronically, the details submitted in the return are matched against the corresponding entries of income and taxes in his Form 26AS. If there is a mismatch between the income or tax reported in Form 26AS and the tax return, the tax authorities send a notice to the taxpayer seeking an explanation for the difference.


Let us take an example. Mr and Mrs A are co-owners of a house and based on the share of investment, offer rental income in their respective tax returns in the ratio of 50:50. However, the tenant, while depositing the tax deducted at source from the rental income, has reported the entire tax against Mr A’s PAN only. Accordingly, the entire rent and the corresponding TDS is visible in Mr A’s Form 26AS while there is neither TDS nor rental income in Mrs A’s Form 26AS. In this case, when Mr and Mrs A file their tax returns offering 50 per cent of the rental income each and claiming credit for 50 per cent of the tax deducted by the tenant, this will not match with their Forms 26AS and may lead to a query from the tax authorities.

Failure to e-verify / send signed ITR to CPC

E-filing a tax return entails a two-fold process: uploading the return (i.e. the xml file) on the income-tax portal and e-verifying the tax return thereafter. E-verification can be done by using Aadhaar or net-banking based one-time passwords. Alternatively, the signed ITR-V can be sent to CPC Bengaluru. Failure to e-verify the tax return can lead to it being treated as null and void.

Not offering income to tax can lead to tax, interest and penal consequences. Hence, this extra bit of caution for certain items of income can save a lot of time in addition to interest and penalty.


 

Source: sea.operanewsapp.com 

Faceless Tax Scheme: NEC to contact tax payers, know the features of this new service

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The Income Tax Department has issued guidelines on sharing or demarcation of the role of officers for implementation of unrecognised tax return assessment. The National E-Assessment Centre will be the main gateway to contact taxpayers.


New Delhi: The Income Tax Department has issued guidelines on sharing or demarcation of the role of officers for implementation of unrecognisable tax return assessment. The National E-Assessment Centre will be the main gateway to contact taxpayers. The Central Board of Direct Taxes has notified the NEAC and various Regional e-Assessment Centres (REAC) in Delhi for implementation of faceless assessment scheme scheme in 20 cities. “Neac/NEAC/NAC) said in detailed guidelines for implementation of the scheme. REAC will manage facebook assessment process.’

It says that all operations will be done electronically, for which the NEAC will be the gateway. “Reac officers and employees will work on assessment and verification under the Income Tax Act, but the department will work on assessing and verifying, but the department will do the same by assessing and verifying the taxpayers/employees,” the CBDT has clarified. Third party contact can be done only in the name of NEAC. Reac will not do any contact in this regard,” he said.


Directorate of Investigation to have the right to serve all kinds of fees
The guidelines further state that the right to survey under the Income Tax Act will now be with the Directorate of Inquiry. “The survey for international taxation charges or any other fee will be done in collaboration with the Directorate of Investigation,” said Shailesh Kumar, partner, Nangia & Co LLP.


What is Faceless Tex Scheme
PM Modi has announced the Faceless Assessment Scheme by implementing the Textiles Charter on Thursday (August 13). The new scheme will come into effect from September 25, 2020. So far, the income tax department of the city could investigate, but now the authorities of any state or city can investigate. After the new scheme, the computer will now decide which tax assessment will be made. This will also determine the computer review itself. This will cause problems for those who do not adopt wrong or pay taxes.

 

 

Source: zeenews.india.com

 

ITR Filing: People with high salary, equity, MF investments may face compatibility issues

Income Tax

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Although the excel utility of both ITR-2 and ITR-3 are now available on the Income Tax e-filing site, there are some technical issues in the two forms.

After much delay due the disruptions caused by the Covid-19 pandemic, Income Tax Return (ITR) excel utilities of ITR-2 and ITR-3 have been uploaded on the Income Tax e-filing site. Along with excel utility, the Java utility is also available on the site for ITR-2.



The utilities of ITR-1 (Sahaj) and ITR-4 (Sugam) were uploaded earlier, even as the due date of filing return of income has been extended from July 31, 2020 to November 30, 2020 for the assessees whose income needn’t be audited.

ITR-1 or Sahaj is for Resident Individuals (other than Not Ordinarily Resident) having Income from Salaries, One House Property, Other Sources (Interest etc.) and Agricultural Income up to Rs 5,000.

However, a salaried taxpayer having total income of above Rs 50 lakh or an Individual who is either a Director in a company or has invested in Unlisted Equity Shares can’t file ITR-1. Even investors in listed equity shares and/or equity-oriented mutual funds (MFs), who have redeemed their investments or have Capital Gains from sale of property etc, can’t avail the benefit of filing ITR-1.



So, the salaried assessees (without income from business or profession), who are not eligible to file ITR-1, need to file ITR-2.

The assessees, who are eligible for filing ITR-1 and ITR-4 may also avail the facility of filling and submitting their return of income online directly on the Income Tax e-filing site.

On the other hand ITR-2 and ITR-3 may be filed using either excel or Java utilities. As excel comes with MS Office, which is widely used, most people prefer to use excel utility over Java.

Although the excel utility of both ITR-2 and ITR-3 are now available on the Income Tax e-filing site, there are some technical issues in the two forms.

For example, if you want to open the excel utility, you may be interrupted by this message, “Excel found unreadable content in ‘ITR2_2020_PR2.1.xlsm’. Do you want to recover the contents of this workbook? If you trust the source of this workbook, click Yes.”



If you click on No, the utility will close down and if you click on Yes, the utility will open, but after removing some parts.

On alerting the Central Board of Direct Taxes (CBDT) on the issue, CBDT said, “The user may be using 2007 and prior versions of MS Office. The utility is compatible for the last three versions (the same is published in the note and in downloads).”

So, along with the complex ITR-2 and ITR-3 forms, the assessees now have to deal with the compatibility issue and those having older versions, may have to install an advanced version of MS Office to use the utilities.

“That would be troublesome as a lot of people use the 2007 version. I believe 20-25 per cent of the people would be relying on government utility and may face issues,” said CA Karan Batra, Founder and CEO of CharteredClub.com.

“Most CAs use paid softwares, so this would not be a problem for them. However, some small consultants and most individuals rely on government utility and may face issues,” Batra added.



So, if you need to file either ITR-2 or ITR-3, but have MS Office of 2007 or older version, either you have to pay for upgrading your software or have to pay a professional to get the return filed for you.

On resolving the compatibility issue, the CBDT, however, said, “We will try to find an alternative option.”

 

https://www.financialexpress.com/

Pay your Income tax online: Follow the step by step guide

Income Tax, News Update, Savings

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Income tax savings

Every citizen of India is supposed to pay income tax if their annual income comes under tax slab set by the government of India. Paying Income tax online is easy and convenient. So, if you are looking for a way to pay income tax online, follow our step-by-step guide.

Pre-requisites:

Working internet connectivity


Keep basic details handy such as PAN, TIN, Net banking details, etc

1. Open ‘https://www.tin-nsdl.com/’ on your computer and click on Services section

2. From the drop-down menu choose the option e-payment: Pay Taxes Online

3. Now, choose the relevant challan from the options ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284 or Form 26 QB demand payment (only for TDS on sale of the property) as applicable.


4. Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address and the bank name through which payment is to be made etc and Submit it

5. After submission, a confirmation message will be shown along with taxpayer name

6. Now, you will be redirected to the net-banking portal of the particular bank you’ve selected in step 5

7. Log in using your Net banking credentials, enter the payment details and make the payment

8. After the payment is successful, the website will issue a challan counterfoil with CIN, payment details and bank name using which the payment has been made.

As the country is under lockdown, these simple guidelines will conveniently make you pay your income tax at your home.


Meanwhile, India registered over 3,000 new coronavirus cases for the second day as the total number of coronavirus cases in the country surged past 55,000. The total number of coronavirus cases in India stood at 56,342, according to the ministry of health and family welfare. Maharashtra confirmed over 1,200 fresh coronavirus cases on Thursday, for the second consecutive day. Delhi witnessed the biggest spike in daily COVID-19 count as 448 new cases were added in the last 24 hours.

You can also take tax on treatment of many diseases in income tax, save up to 1 lakh rupees

Income Tax, News Update, Savings

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Opportunity to save tax because we have many options for saving tax, including PPF, gratuity, health insurance, life insurance.

Due to the Corona crisis and the lockdown, the central government has also extended the date of filing Income Tax Return (ITR) till June 30. The final date for March 31, 2020, to file ITR was final. The increase of this deadline has brought relief to crores of taxpayers. Along with this relief, taxpayers have also got an opportunity to save their income tax.


टैक्स बचाने का मौका इसलिए क्योंकि पीपीएफ, ग्रेच्युटी, स्वास्थ्य बीमा, जीवन बीमा सहित टैक्स बचत के हमारे पास कई सारे विकल्‍प हैं। इनपर इनकम टैक्‍स में छूट मिलती है। क्या आपको पता है कि कई बीमारियों के इलाज पर भी इनकम टैक्‍स की छूट मिलती है। इसके जरिए आप 1 लाख रुपये तक बचा सकते हैं। दरअसल इनकम टैक्स के नियम के मुताबिक सेक्शन 80DDB के तहत टैक्सपेयर्स को यह टैक्स छूट मिलती है।


Under this section, any person residing in the country or under Hindu Undivided Family (HUF) can get tax exemption. Under this, if you are suffering from a particular disease, you can claim deduction up to 40,000. On the other hand, if a senior citizen is suffering from a particular disease, then there is a tax exemption on expenses up to 1 lakh on the treatment of the disease. In this, one gets a claim on the treatment of many special diseases.

Now you have to tell the company, choosing the new tax system or the old

Income Tax, News Update

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What if there is a lockdown, essential work is going on in companies. It is the month of April and you must have received the mail related to income tax declaration from your company! This work has to be completed. But, the problem this time is that you have to decide which income tax to choose – new or old?

The Income Tax Department has said that if the employees want to adopt the new tax regime for the current financial year, then they must tell their company about it. So that TDS will be deducted while paying the salary accordingly. Now that you have to do the final elections, let us understand once again what is different in the new tax system.

Tax exemption will not be available in the new tax system

Finance Minister Nirmala Sitharaman announced a new alternative system for personal income taxpayers in the Budget 2020-2021 in which tax rates are kept low. However, the benefit of tax exemption under Section 80C, 80D and 80SCD including HRA, Home loan interest, Investment in life insurance policy will not be given in it.


The new tax system is optional

This new system with a lower tax rate has been kept optional. Whether the taxpayer continues to pay income tax under the old system or can adopt the new system.

Tax slabs in new tax system

NBT

An annual income taxfree of up to Rs 2.5 lakh has been kept in the new tax system. This is also the rule in older systems. The new system will be taxed at the rate of 5% on annual income ranging from Rs 2.5 lakh to Rs 5 lakh. At the same time, 10 per cent on the income of five lakh to 7.5 lakh, 15 per cent on the income of 7.5 to 10 lakh rupees and 20 per cent on the income of 10 lakh to 12.5 lakh, 25 per cent on the annual income of 12.5 to 15 lakh rupees. And income above 15 lakh rupees will be taxed at the rate of 30 per cent.

How many slabs in the old tax system?

NBT

Many discounts will not be available if you adopt this system. At the same time, in the old system, there is a provision of imposing income tax at the rate of 5 per cent on income ranging from Rs 2.5 lakh to Rs 5 lakh, 20 per cent on Rs 5 lakh to Rs 10 lakh and 30 per cent on annual income above Rs 10 lakh. However, there are several types of tax exemptions that can be taken in this system.


What will happen if the employer is not informed?

NBT

The CBDT has issued a circular stating that if any employee does not inform the employer about choosing a new system of tax, the employer will calculate TDS without considering the provisions of Section 115 BAC of the Income Tax Act. In the second case, the deductor will prepare the TDS under the provisions of Section 115 BAC of the Income Tax Act and calculate the total income of the employee.

Can you switch once you choose the tax system?

NBT

Taxpayers will get the opportunity to choose one of the two tax systems, they can change this election every year but some taxpayers will not get this facility. That is, once they choose the system, they have to stick to it. Only salaried and pensioners will get the option to switch from one system to another. Taxpayers with a business income will not be able to change elections every year. Once you have chosen the system, you have to proceed with it.


The selected system can be changed even while filing ITR

If taxpayers have informed their employer by choosing the old tax system at the beginning of the new financial year and later feel that the new system is more beneficial for him, then he can choose it at that time. He will be allowed to choose the exact opposite, ie, when the first new system is selected, while filing the return, the old system will be allowed. That is, if employees had to pay more tax under the system they had told the employer to choose to deduct tax on the source at the beginning of the financial year, then they can change it while filing ITR.

Corona: Major decision of Income Tax Department, deferment on 15G / H form

Income Tax, News Update

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The Income Tax Department has given relief to taxpayers who have filled the 15G and 15H forms due to the Corona effect.

  • Normally 15G-15H form is to be submitted in April.
  • Last date for filling the form has been extended to 30 June 2020

Due to the effect of the corona virus, the government has extended several important deadlines till June 30. Now the Income Tax Department has given relief to those who are going to submit the 15G and 15H forms for the current financial year. Actually, the last date for filling both these forms has been increased to 30 June 2020.


The order issued by the Central Board of Direct Taxes (CBDT) states that the 15G and 15H forms submitted in the last financial year will be valid till June 30, 2020. CBDT said that if a person has submitted a valid 15G and 15H form with the bank or other financial institutions for the financial year 2019-20, then they will be valid for the financial year 2020-21 till June 30, 2020.


Read this- Deadline of 6 important works was coming to an end, now there is a delay

Form 15H is required to be submitted to senior citizens, while Form 15G is required to be submitted to those whose taxable income is less than the exemption limit. Taxpayers usually submit these forms to banks and financial institutions in April. The CBDT has taken this step in view of the difficulties faced by the people in view of Kovid-19.

This deadline has increased


Explain that due to the lockdown, the last date for filing income tax returns for the financial year 2018-19 has also been increased to 30 June. Actually, the last date for filing returns for the financial year 2018-19 was 31 August 2019. From 1 September 2019 to 31 December 2019, the maximum penalty for filing the return was 5000 rupees. The maximum penalty for filing a return from January 1 to March 31, 2020 is 10 thousand rupees. But now its deadline has increased till June 30. However, there is also a slight relief on the penalty front.

 

No tax on Senior Citizen Savings Scheme (SCSS) interest income! Here’s why SBI Research suggests this

Income Tax, News Update

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SCSS interest income: In the wake of deep cuts in interest rates of small savings schemes, the SBI Research has suggested the government to make interest income on Senior Citizen Savings Scheme (SCSS) completely tax-free



SCSS interest income: In the wake of deep cuts in interest rates of small savings schemes, the SBI Research has suggested the government to make interest income on Senior Citizen Savings Scheme (SCSS) completely tax-free as the elderly people are likely to be severely affected by the rate cuts in small savings schemes. In its latest ‘Ecowrap’ report, SBI Research said, “As per our estimates, there are around 4.1 crore Senior Citizens term deposits accounts in the country with total deposit of Rs 14 lakh crore.”

“Hence it is imperative that the Government exempts interest income from taxes particularly for Senior Citizen Savings Scheme (SCSS) for which the Government has reduced interest rate from 8.6% to 7.4%, a whopping 120 bps decline,” it added.


The report noted that reduction in Small Savings Schemes was “imperative”. Since the small savings rates are benchmarked with the 10 -Year G-sec, the recent rate cuts will “reduce the divergence between bank and small savings rates.”

While pointing out that the interest rates on small savings schemes are still better than the bank deposits, SBI Research noted that the rate cuts will have a “huge impact on senior citizens savings, as their regular income will drop.”

We assess that there are around 4.1 crore Senior Citizens term deposits accounts in the country with total deposit of Rs 14-lakh crore. The average deposits size per account is around Rs 3.3 lakh and interest income from such deposits forms 5.5% of Private Final Consumption Expenditure in FY19,” it said.


In the current scenario, the report noted, ” it is imperative that the Government should exempt interest income from taxes particularly for Senior Citizen Savings Scheme (SCSS) for which Government has reduced interest rate from 8.6% to 7.4%, a whopping 120 bps decline, The interest income under SCSS is fully taxable (the interest amount for Rs 1 lakh deposit for 5 years is around Rs 40,000 which is taxable).”

Under SCSS scheme, Senior Citizens can deposit up to Rs 15 lakh in an account.

Bank credit to sectors vulnerable to covid-19 grew fastest recently

Income Tax, News Update, PF, Top Credit Card Offers

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  • NBFCs are struggling with liquidity and the impact through them to bank balance sheets would be felt
  • The lockdown has shuttered restaurants, hotels and tourism to enforce social distancing

Banks have lent more to sectors that have emerged as the most vulnerable to the lockdown imposed for curbing covid-19 spread, shows data from the Reserve Bank of India (RBI).

As of February, loans to commercial real estate grew by 15.13% year-on-year while those to tourism, hotels and restaurants grew by 16.95%. As the adjoining chart shows, credit growth rates were low a year ago for these two services.


The lockdown has shuttered restaurants, hotels and tourism to enforce social distancing. With malls, multiplexes and non-essential stores closed, commercial real estate has taken a massive hit. Add the fact that work from home has been adopted, offices too have been largely closed. It is obvious that commercial real estate is one of the biggest casualties of covid-19 and recovery won’t be quick.

The fact that loans to this sector had picked up of late is going to bother banks. Analysts have already pointed out that asset quality would be hit in the wake of the lockdown.

Growing pain.

To be sure, the share of commercial real estate in total credit is small at 2.5%. That of tourism, hotels and restaurants is even smaller at 0.5%. Even so, these segments and most services contribute heavily towards employment. Ergo, cascading effects onto individual incomes and therefore onto personal loans cannot be overlooked by banks.

Meanwhile, on an aggregate level, credit growth to services has decelerated sharply to 6.93% from 23.67% a year before. Loans to manufacturers too have shown subdued growth, bringing the overall non-food credit growth down.


Loans to non-banking financial companies (NBFCs) grew by 22.29%, less than half the pace of growth a year back. That said, NBFCs are already struggling with liquidity issues, which now gets more complicated due to the lockdown. The impact through them to bank balance sheets would be felt.


Indeed, there is no sector of the economy untouched by the virus outbreak. But some corners are more painful than others. Unfortunately, Indian banks seem to have increased lending to these painful corners. As the lockdown to prevent covid-19 spread shrinks banking activities to the mere basics, the country’s lenders are bracing for a quite a hit on their assets.

RBI announces more measures to help fight covid-19 crisis

Income Tax, News Update

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  • The RBI has increased the borrowing limit of all states and Union territories under the WMA facility by 30% from the existing limit
  • The RBI has also extended the realization period for export proceeds

RBI, coronavirus, coronavirus pandemic, fight against covid-19 crisis, borrowing limit extended, WMA limits, realization period for export proceeds

The central bank on Wednesday announced steps to help states cope with the fallout of the covid-19 pandemic, including allowing a higher borrowing limit. This also acknowledges the states’ frontline role in mitigating the impact of the pandemic.


The Reserve Bank of India (RBI) has increased the borrowing limit of all states and Union territories under the ways and means advances (WMA) facility to help them overcome the mismatch between revenue and expenditure flows because of the unprecedented 21-day nationwide lockdown.

The other measures announced by RBI include an extension of realization period for export proceeds and deferring implementation of countercyclical buffers.

RBI said that pending submission of the final recommendations by an advisory committee, it has decided to increase WMA limit by 30% from the existing limit for all states and Union territories to allow them to tide over the current crisis. The revised limits, it said, will come into force from 1 April and will be valid till 30 September.

RBI, as banker to the central and state governments, provides financial accommodation to tide over temporary mismatches in the cash flow of their receipts and payments as WMA, which is intended to provide a cushion to the states to carry on their essential activities and normal financial operations. The increased limits are expected to help state governments spend on fighting the fallout of covid-19 outbreak. Maharashtra, Telangana and Kerala have already announced salary cuts for its employees as state revenues suffer.


According to RBI rules, the normal WMA limits are based on a three-year average of the state’s actual revenue and capital expenditure and withdrawing beyond the limit is considered an overdraft. Under the prudential rules, a state government account can be in overdraft for a maximum 14 consecutive working days with a limit of 36 days in a quarter. States pay interest linked to the repo rate on WMA withdrawals. The increase in WMA limits will obviate states’ need to resort to overdrafts.

The increase in WMA limits will also allow states to not only meet targeted expenditure commitments in the absence of revenue flows but step in with emergency funding to meet the exigencies arising out of the pandemic.

On 31 March, RBI raised the short-term borrowing limit of the central government as well. It said that the limits for WMA for the first half of the financial year 2020-21 will be 1.2 trillion, from 75,000 crore in the first half of last financial year.

Meanwhile, the central bank said that the framework on countercyclical capital buffer (CCB) was put in place on 5 February 2015. The guidelines say that CCB would be activated as and when circumstances warranted. “Based on the review and empirical analysis of CCB indicators, it has been decided that it is not necessary to activate CCB for a period of one year or earlier, as may be necessary,” it said.


CCB was introduced as part of Basel-III, as an additional risk mitigation measure, in the aftermath of the 2008 financial crisis and required banks to salt away a portion of their profits as reserves even in boom times.

7 key income tax changes effective April 1, 2020: All about FY, PPF, tax savings you need to know

GST, Income Tax, News Update, PF

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The government has allowed taxpayers to invest in PPF, NSC, ELSS or any other tax saving scheme by June 30, 2020, and yet claim tax benefit for the FY 2019-20.

Even while the country is in a complete lockdown to control the spread of Coronavirus in the country, the new financial year (FY) 2020-21 has sneaked in from April 1. For income tax purpose, while the FY 2020-21 has begun on April 1 and will end on March 31, 2021, the relevant assessment year (AY) will be AY 2021-22. All income earned during the FY is assessed in the AY and income tax return for FY 2020-21 is accordingly filed in the AY 2021-22.


As a taxpayer and even if one is not a taxpayer, there have been several important changes that one needs to be aware of. Here are a few of those key income tax changes effective April 1, 2020.

1. Financial Year not extended

Firstly, it is important to note that contrary to the concern raised about a change in the financial year, the government had clarified on March 30, 2020, that the financial year has not been extended and the status quo on the same is being maintained. The government had extended the date related to the Indian Stamp Act for certain amendments to be effective from April 1, 2020, which has now been extended to July 1, 2020.


2. Last date for I-T savings extended

If you were not able to make income tax saving for FY 2019-20 because of the lockdown, there’s a piece of good news. The government has allowed taxpayers to invest in PPF, NSC, ELSS or any other tax saving scheme by June 30, 2020, and yet claim tax benefit for the FY 2019-20. The tax benefit under Section 80C, for FY 2019-20 may, therefore, be availed even if the investment is done between April 1, 2020, and June 30, 2020. However, for those who have already made tax-saving investments, can invest till June 30 or anytime later in the FY and avail tax benefit for FY 2020-21.

3. New Tax Regime in-force

Starting FY 2020-21, the income taxpayers will have an option to pay lower income tax rates by foregoing income tax exemptions and deductions or continue paying the same tax rates by availing the deductions. For those availing lower rates will be assessed under the New Tax Regime else the assessee will continue to pay taxes as per Old Tax Regime.


Under the new tax regime, the following will be the new income slabs and tax rates:

Up to Rs 2.5 lakh – Nil

From 2,50,001 to Rs 5 lakh – 5 per cent.

From 5,00,001 to Rs 7.5 lakh – 10 per cent.

From 7,50,001 to Rs 10 lakh -15 per cent.

From 10,00,001 to Rs 12.5 lakh – 20 per cent.

From 12,50,001 to Rs 15 lakh – 25 per cent.

Above Rs 15 lakh – 30 per cent.

Some important exemptions, deductions available under Income-tax Act that the taxpayer will have to forgo will include – Investments in PPF, ELSS, Life insurance etc, and expense such as home loan repayments, tuition fees etc.

4. Belated return last date extended

The last date to file ITR without late filing fee for AY 2020-21(FY 18-19) was August 31, 2020. The late filers could file their belated return by March 31, 2020, which now has been extended by the government to June 30, 2020. The penalty of Rs 10,000 as a late filing fee for those with income above Rs 5 lakh will, however, needs to be paid.

5. Interest on due tax

If as a taxpayer you have delayed payments of advanced tax, self-assessment tax,  regular tax, TDS, TCS made between 20th March 2020  and  30th June 2020,  the government has reduced interest rate at 9 per cent instead of 12 per cent per annum ( i.e. 0.75 per cent per month instead of 1 per cent per month.


6. Dividend taxable

From this FY, the dividend received by equity shareholders and equity mutual fund investors will become taxable as per one’s income tax slab. Till now, the company declaring the dividend was levying
Dividend Distribution Tax (DDT) before the distribution of dividends to the investor but now that will stop. The tax on dividend will be paid by investor now. For equity MF investors, the DDT of 11.64 per cent was deducted before receiving the dividend amount. Those investors in higher tax slab will be impacted more because of this new rule.

7. Home loan for first-time buyers

For the first time buyer of a home, the government has extended the tax benefit available on interest payment of the home loan. Under Section 80EEA, the borrower can avail a deduction of up to Rs 1.5 lakh on home loan interest payment subject to certain conditions. One such condition is that the home loan needs to be sanctioned by the lending institution during the period from 1st April 2019 to 31st March 2020 which has now been extended to March 31, 2021. Importantly, the value of the home as per the stamp duty needs to be within Rs 45 lakh.

ऑनलाइन टैक्स बचाने के ये हैं 5 रास्‍ते, अपनाएंगे तो बचेगा काफी पैसा

Income Tax, News Update, PF

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31 मार्च आने से पहले आपके पास इनकम टैक्‍स बचाने का बेहतरीन मौका है. इसके लिए आप ऑनलाइन टैक्‍स बचाने के उपयुक्‍त तरीके अपना सकते हैं. इससे न सिर्फ आपका टैक्‍स बचेगा बल्कि फ्यूचर सिक्‍योर करने के लिए फाइनेंशियल प्‍लानिंग भी आसानी से हो सकेगी.
मार्च आने से पहले आपके पास इनकम टैक्‍स बचाने का बेहतरीन मौका है. इसके लिए आप ऑनलाइन टैक्‍स बचाने के उपयुक्‍त तरीके अपना सकते हैं. इससे न सिर्फ आपका टैक्‍स बचेगा बल्कि फ्यूचर सिक्‍योर करने के लिए फाइनेंशियल प्‍लानिंग भी आसानी से हो सकेगी. टैक्स एक्सपर्ट राज चावला के मुताबिक टैक्‍सपेयर बैंक में FD, ELSS, इंश्‍योरेंस पॉलिसी, PPF या होम लोन रीपेमेंट कर अपना टैक्‍स बचा सकते हैं.


टैक्‍स बचाने के ऑनलाइन उपाय
1. बैंक फिक्स्ड डिपॉसिट (5 साल)
2. ELSS
3. इंश्योरेंस पॉलिसी
4.PPF
5. होम लोन रीपेमेंट

बैंक FD (5 साल)
टैक्स बचाने का सबसे आसान तरीका
ऑनलाइन FD में निवेश कर सकते हैं
इसके लिए KYC प्रक्रिया पूरा होना जरूरी
ध्यान रखें बैंक खाते में पैन नंबर अपडेट हो
नेट बैंकिंग के जरिए लॉग-इन कर निेवेश संभव
मैच्योरिटी पर मिलने वाली रकम खाते में आएगी

ELSS
आप ELSS में ऑनलाइन निवेश कर सकते हैं
फंड हाउस की वेबसाइट पर जाकर निवेश कर सकते हैं
जरूरी है कि आपके अकाउंट की KYC हुई हो
नेटबैंकिंग के जरिए निवेश की पेमेंट कर सकते हैं
शेयर बाजार खुले रहने तक निवेश कर सकते हैं
3 बजे से पहले किए निवेश का NAV उसी दिन का


इंश्योरेंस पॉलिसी
बीमा कंपनी की साइट पर ऑनलाइन पॉलिसी खरीद सकते हैं
पॉलिसी अपलाई, नेट बैंकिंग, क्रेडिट कार्ड पेमेंट ऑप्शन ऑनलाइन
हेल्थ इंश्योरेंस भी ऑनलाइन खरीद सकते हैं
हालांकि कई मामलों में मेडिकल टेस्ट की जरूरत हो सकती है
ऑनलाइन स्वास्थ्य बीमा खरीदने के लिए उम्र 45 साल होनी चाहिए


PPF
अपने इंटरनेट बैंकिंग अकाउंट पर लॉगिन कर अकाउंट खोले
अकाउंट खोलने के लिए ऑनलाइन फॉर्म भरना होगा
पहले से PPF अकाउंट तो लिंक्ड सेविंग अकाउंट से फंड ट्रांसफर करें
PPF में 1.5 लाख रुपए तक के निवेश पर टैक्स छूट

होम लोन रीपेमेंट
होम लोन का रीपेमेंट ऑनलाइन कर सकते हैं
होम लोन अकाउंट को नेट बैंकिंग से जोड़ें
लिंक करने के बाद आप फंड ट्रांसफर कर सकते हैं
होम लोन रीपेमेंट पर 80C के तहत टैक्स छूट

Income Tax Alert: NPS scheme can help you save tax up to Rs 2 lakh; here is how

Income Tax

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Income Tax Alert: Section 80C allows up to Rs 1.5 lakh income tax exemption in a financial year. If an income tax payer includes Section 80CCD (1B), this annual limit can be raised up to Rs 2 lakh.


Income Tax Calculator: NPS or National Pension Scheme account holder can claim income tax exemption up to Rs 50,000 investments in one particular financial year. According to the tax and investment experts, this tax benefit is additionally given to the taxpayers under Section 80 CCD (1B) of the Income Tax Act. As per the investment experts’ opinion, the Narendra Modi Government at the center has already increased the income tax exemption limit from NPS maturity amount from 40 per cent to 60 per cent. So, in the coming times, an investor who has a lesser risk appetite can get attracted to the NPS scheme.




Singhal said that in the case of a government employee, he or she can enjoy a higher income tax deduction of 14 per cent of its employer’s contribution. So, if you haven’t opened your NPS account, you should open it on an urgent basis. NPS account can be opened online as well.

Difference Between Income Tax Return and TDS.

Income Tax, ITR

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Difference Between Income Tax Return and TDS. Why You need to file income tax return (ITR) even if TDS is paid

Income tax and Tax deducted at source often confuse each and every new taxpayer. Before filing tax, one should know and understand the differences between these two types of taxes.

This article will give you an overall understanding of what the two Taxes are about and how they are different in function. We will also discuss the need to file for Tax returns if TDS is paid.



What is ITR [Income Tax Returns]?

income tax is imposed upon an individual or a firm by the state when the income exceeds the limit set by the income tax law of one country. Income tax is taken by the state government and used primarily for the development programs, salaries of government employees and various other programs.

It is based on the annual income of one individual or business entity. There are various rules and regulations prevailing in the country regarding income tax. Since it is an annual calculation, you are required to file for Tax return once every year (if your salary is above the permitted minimum). It can be easily filled through the government portal.

Income tax is applicable to individuals who are earning an annual salary of 2.5 Lakhs or above. For senior citizens, the limit is set to 3 lakhs if you are aged between 60-80 and 5 lakhs if you are aged above 80.

What is Tax Deducted at Source?

Tax deducted at source as it is better known is s system introduced by the income tax department wherein the person or entity responsible for giving salary, commission or any other professional fees is liable to deduct a percentage as the tax before giving the amount to the employee/the receiver of the payment.



This is usually done monthly or over a period of time.

Do you need to file for ITR if TDS is paid?

Regardless of TDS being paid or not, you will have to file for income tax returns if you fit certain criteria. This is mainly because TDS is calculated based upon an anticipated amount and income tax is an accurate amount.

Let us use an example to better understand the situation. Suppose an employer is deducting TDS from an employee’s salary on a monthly basis, this would mean that, TDS will more or less be equal to income tax payable. Now suppose if the employee has land and is earning from it. Here the final income tax amount you will be getting would be more than the sum of TDS deducted.

If you exceed the minimum limit which is set (2.5 Lakhs) it is mandatory for you to file income tax returns. You will have to file a return if your salary is below the permitted limit also in some cases.

Failure to do so will result in a letter from the AO informing you about the failure to file returns. And if this is ignored you will end up with a penalty or sometimes even legal action if the taxable amount is high. This can also lead to imprisonment of up to 2 years depending upon the scale of the offense.

It is always best to file for returns at the correct time as penalties can often lead to headaches in the future.

What are the differences between Income Tax Return [ITR] and Tax Deducted at Source?


  • The first difference would be in the calculation of the two taxes, while income tax is calculated annually, TDS is deducted periodically based upon an estimation of the annual income. The total of the TDS deducted during the year would be more or less equal to annual income tax which you are incurred to pay.
  • Income tax is calculated based on a definite amount while TDS is calculated based upon an anticipation of the annual earing. That is why you should file for ITR.
  • Income tax represents an individual’s annual tax liability. This is not the case with TDS as it just displays a fraction or percentage of an individual’s annual tax liability
  • There are instances where you will not be inclined to TDS deductions within a month but you should file for income tax. This is when an individual’s income from primary employment is low but he may be getting money from secondary sources which makes his annual salary rise above the limit.
  • Now another difference is that TDS is deducted and paid to the government by the payer/ the employer. It does not have anything to do with the receiver. On the contrary income tax should be paid directly by the taxpayer.

Conclusion.

Let’s summarize what we have discussed in the above topics;

  • Income tax is calculated based on the annual earnings of the individuals or a business enterprise. Tax deducted at source is based upon an anticipated tax which is usually deducted monthly. TDS can be regular or irregular in nature.
  • Even if the tax is deducted in the form of TDS every month, you will still have to file for income tax returns as it is mandatory.
  • When you are filing for returns you can make sure all TDS is considered and you can also apply for a refund if found eligible.
  • Another valuable piece of information would be the tax credit statement which will be given by the employer or your bank, if not given it can be filed through section 26AS which will give accurate credit information.
  • Individuals may face strict penalties or actions if they ignore the existing laws and fail to file for income tax.




Filing for income tax can be especially difficult for remote workers or freelances whose wages cannot be calculated properly over a period of time. The can consult the help of accounts experts or agencies to do the same on their behalf. This is also the case if you happen to have a business entity and have to file taxes.

Also Read :

Step-By-Step Guide on How to File Income Tax Return Online

Income Tax, ITR

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Step-By-Step Guide on How to File Income Tax Return Online

Step-By-Step Guide on How to File Income Tax Return

As 31st July is just a few days away. It is high time to file your Income Tax Return now. Here is a step by step guide on How to File Income Tax Return. Read on and file your ITR in an easy and quick manner.




1. If you are a first-time return filer, register yourself on the income tax department’s official

E-filing portal www.incometaxindiafiling.gov.in.

Your permanent account number (PAN) will act as your user ID.

2. Keep key documents handy, including the Form 16, Form 26AS (tax credit statement), bank statements, copy of returns filed last year, capital gains statement from mutual funds and brokers.

3. Go to ‘Downloads’ tab to download the ITR preparation software (JAVA or Excel utility) for the relevant assessment year.

4. If tax is due, make the payment immediately and enter the details in appropriate schedule. Repeat above step so that tax payable turns ‘zero’.

5. Enter all data and click on ‘Calculate’ to compute the tax and interest liability and final figure of refund or tax payable.

6. Prepare the return using the downloaded software application; pre-populate the personal details and tax payments/TDS by clicking on the ‘pre-fill’ button. Compare with the information you have to ensure that nothing is left out.

7. Generate and save the ITR data in XML format.

8. Login to the e-filing website, go to ‘e-file’ and click on ‘Upload Return’.

9. Select the relevant ITR, Assessment Year and XML file saved.



10. In case of physical verification, you will have to send the printed and signed ITR-V form to the I-T department’s CPC in Bengaluru by post within 120 days of e-filing your return; an acknowledgement from the department confirming receipt will complete the process.

11. If you have not used DSC, ITR-V will have to be downloaded, you can also choose to generate electronic verification code through your bank ATM/net banking or use Aadhar-based OTP for e-verification.

12. Upload Digital Signature Certificate (DSC), if you have obtained one and it is registered with the portal, and click on ‘Submit’ button. In this case, your process will now be considered complete.




Also Read :

Tax related Important Dates to Remember

Income Tax

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Tax related Important Dates

Tax related Important Dates to Remember

Income Tax Return date is approaching, We have Listed down important Tax related dates. You must bookmark this page for future references.



31st July 2018

Deadline for salaried taxpayers to file tax returns for the assessment year 2018-19 (financial year 2017-18); missing this deadline will invite a late-filing penalty of Rs.1,000-5,000.

 31st December 2018

Date till which taxpayers can file their return after shelling out a penalty of Rs.5,000 ( Rs. 1,000 for those with income under Rs. 5 Lakh), which will go upto to Rs.10,000 if they fail to meet this deadline too.

31st March 2019

Final deadline for filing returns for assessment year 2018-19. After this date, taxpayers will be allowed to file returns only if the tax authorities allow them to do so under exceptional circumstances.

AY 2017-18 Onward



You can file belated return only till the end of the assessment year. Until AY 2016-17, you could have done so till the completion of one year from the end of the assessment year. However, unlike earlier, your belated return can be revised till the end of the assessment year.

 



Also Read :

Income tax returns (ITR) filing: How to avoid excess deduction of TDS from salary income

IT Returns – Guide for e-Filing of Income Tax Return (ITR) Online

HOW TO FILE TAX RETURN STEP BY STEP

Worried About Income Tax: We have some Ideas for you.

about income tax

Four Things you may not know can cut your Income Tax.




(1)  Restaurant Bills :-     some part of the salary can be paid in the form of food coupons. you can get a part of your salary at ₹ 50 a meal for 22 working days and up to two meals a day. That sums up to ₹ 2200 a month . If someone falls in the 30% tax bracket then this could save up to ₹ 7920 annually in taxes.

(2)  Expenditure on your vacation : –   when you purchase tickets for vacation travel then the expenditure on tickets can be claimed as leave travel allowance ( LTA) . There is no ceiling on how much LTA can be claimed so it become more interesting . But the fare of your flight must not cost more than the national carrier for the same route . Also this claim is allowed twice in four years . For example if you are planing a trip to manali and your tickets coast you around 21,000 including your spause then you can get benefit of 7000 if you fall in 30% tax bracket . But this claim is only for travel with in India . Important thing is it only covers travel fares not the boarding , lodging and other expenses.




(3) HRA (House Rent Allowance ) :-   HRA is given by your employer to cover the house rent paid by you. But working with your employer to fix HRA could be great deal to save tax . But you should have all rent receipts and the agreement with your landlord to avail the tax benefit . But if you go for home loan and want tax benefit on interest paid instead of HRA than watch carefully because  the interest is steep and tax benefit on interest is restricted to tax save on 2 lakh annually. So the choice is yours.

(4) Official Reimbursements : –  If your employer agrees to make some part of your salary as reimbrusements then this could be a tax saving route . Like phone bills, cab expeses etc . Suppose you get 60,000 annually as reimbursement than you save 20,000 straight if you are in 30% bracket .



So, this is for you read to have an upper hand in tax savings . Read again to become a master . Thanks for the patience .



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Income Tax Department Alert: Fixed Deposit Interest Of Over Rs.5 Lakh Can Invite Problems

Income Tax, News Update

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Income Tax Department Alert: Fixed Deposit Interest Of Over Rs.5 Lakh Can Invite Problems



It seems the government is leaving no stone unturned in its effort to make the tax net more wide in the county. According to a recent TOI report, those who earn more than Rs.5 lakhs from their fixed deposits would come under the radar of income tax authorities. The income tax department is all set to closely monitor their bank accounts and will investigate those who are not paying taxes even after having huge amounts in their fixed deposits.

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Even the accounts of senior citizens whose income from interest on fixed deposits is not considered in their taxable income or do not file tax returns at all will also be monitored as per senior officers in the Central Board of Direct Taxes (CBDT).



The tax authorities have started paying more attention to the fixed deposits because there are many professionals who deal in huge amounts of cash and enjoy a lavish lifestyle, but not always file income tax returns.

The Income Tax Department will be relying on banks to give them information related to such accounts. According to the report, they also has a substantial amount of data acquired from different agencies to hunt for those people who are deliberately avoiding the tax net.

The main focus will be on big frauds. “Our primary focus is on the big evaders. Small time cases and persons will be not chased as they do not yield much returns”, as per a senior officer.

Prime Minister Narendra Modi-led government since the very beginning has been very much attention to the need of expansion of the tax net for such frauds. There have been reports which says that the Income Tax authorities are expected to raise approximately Rs.9.8 lakh crores from the direct taxes in the current financial year.

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