Link PAN with Aadhaar: In cases where PANs of the deductees/ collectees have been inoperative, the TDS is deducted at higher rates. However, the income tax department has said that no action will be taken for a short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31. Know how to link your PAN with Aadhaar. As per income tax rules, if a Permanent Account Number (PAN) is not linked with a biometric Aadhaar, TDS is required to be deducted at double the applicable rate. In a circular on April 24, the Central Board of Direct Taxes (CBDT) said several grievances have be ..read more

TDS at normal rates:For those who haven’t linked their Permanent Account Number (PAN) with Aadhaar, the tax deducted at source (TDS) rate is supposed to be double the normal rate. However, after numerous complaints, the burden of deducting excess TDS on the seller has been waived under certain circumstances. The government’s recent move aims to ease the pressure on entities collecting Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) at regular rates. Read Also: I-Tax Department sets up control room for cash transactions This means that if a PAN became “inoperative” due to its no ..read more

Cash transactions: The Pune income tax department has set up a special control room for Pune and other districts of Pune division to monitor the misappropriation of money and control transactions during the election period. Suhas Diwase, district collector and district election returning officer, has appealed to citizens to be vigilant and report information that will help the income tax department monitor and curb the misuse of black money in the upcoming general elections. Citizens can register their complaints or report misuse of money by contacting the control room.  This cell will b ..read more

The Central Board of Direct Taxes (CBDT) has asked SROs or self-reporting organisations to file details of all high-value transactions that were carried out in 2022-23 by June 30. The SROs include organisations such as banks, post offices, co-operatives, fintechs and mutual fund houses. Any transaction over Rs 50 lakh, share sale and purchase of above Rs 10 lakh and post office deposits and withdrawal of Rs 5 lakh has to be reported. According to a reports, there are about 6,000 reporting entities that have either not filed the information, provided incomplete details or given it in an incorr ..read more

Kochi: The Kerala High Court has declared that the ‘Malabar Parota’ and the ‘Whole Wheat Malabar Parota’ are akin to ‘bread’ and hence should be taxed at the rate of 5% GST instead of the previously imposed 18% GST. The directive came from the bench of Justice Dinesh Kumar Singh in response to a petition filed by Kochi-based Modern Food Enterprises Pvt Ltd seeking the same relief. Read Also: GST might be lifted from reinsurance post-elections, bringing relief to insurers The petition challenged the order of the appellate authority for Advance Ruling, Kerala, which had determined that the pet ..read more

Change Tax regime: Employees in India choose between two tax regimes – the old regime and the new regime – based on factors that can potentially reduce their overall tax burden. Salaried employees have the opportunity to submit a declaration to their employer specifying their preferred tax regime. This might be done through internal portals, HR forms, or specific tax regime selection processes. It’s important to note that this choice for TDS purposes can be made only once a year. Can you change the tax regime while filing ITR? You can still change your tax regime while filing your income tax ..read more

The insurance sector is likely to see a breather from tax burden with the GST Council set to review an exemption for reinsurance after the elections, said the sources. In its attempt to not disrupt the insurance industry practices, the Goods and Services Tax (GST) Council may issue a clarification that reinsurance is not a supply of service, a senior government official said. Many leading insurance companies had last year reportedly got notices for non-payment of GST on reinsurance premiums. By definition, 18 percent tax is levied on any supply of service. Read Also: GST on related party ..read more

  Income Tax Form 12BA: Form 12BA is a detailed statement which shows the particulars of perquisites, other fringe benefits and profits in lieu of salary. This is issued by the employer to the employee. Applicability of Form 12BA Form 12BA should only be submitted in cases where the employee’s salary exceeds Rs 1,50,000. The details of the perks that are already included in “Part B” of Form 16 itself would be sufficient if the salary did not exceed Rs 1,50,000. A separate statement in the form of “Form 12BA” is not necessary. Therefore, Form 12BA is merely an extra document that needs to ..read more

According to sources, the Ministry of Finance is expected to provide clarification regarding the taxability of corporate guarantees under the GST law between related parties. And The debate revolves around the calculation of taxable value based on actual amount utilised by the beneficiary when the guaranteed amount exceeds the utilisation. In addition, there is a call for clarity on whether this change should apply prospectively or retrospectively. In October 2023, the GST Council had announced corporate guarantees for bank loans given by the parent company to its subsidiary would attract 18 ..read more

The Income Tax (I-T) department has announced that starting on April 1, 2024, ITRs 1, 2, 4, and 6 will be accessible through the e-filing portal. Remarkably, about 23,000 returns have already been filed for the fiscal year 2023-24, marking a significant early start to the tax filing season. With this initiative, taxpayers can now promptly file their Income Tax Returns (ITRs) on the first day of the new fiscal year, which is a significant change from previous practices. In a statement, the Central Board of Direct Taxes (CBDT) stated that the goal of this action is to guarantee seamless taxpaye ..read more