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Latest Official Tax (Income Tax + TDS) Updates by CBDT of India

Income Tax Is the tax levied by the government on the income earned by an individual in any given previous year. Income tax is charged as a price for utilizing the services provided by the government and to maintain the same. It is the main source of revenue for the central government. The main motive of collecting income tax is so that the amount raised by the government can be used for the development of buildings, roads and other infrastructure and development services. Income tax is collected by the central government and distributed to the state governments.

Income tax is managed by the Central Board of Direct Tax (CBDT) and is governed by the Income Tax Act, 1961. There are six sources of income according to the Indian tax system. Income from salary, income from business or profession, income from capital gains, income from other sources, income from house property and income from lottery, horse race etc. Different rates of tax are applicable to different types of incomes. Some deductions are also provided by the government on the income. The taxable income of an individual can be calculated after the deduction of such deductions.

Income tax is charged by the government according to the income earned by the individual. It is levied according to a slab system. In India, two slab systems are working under income tax, namely, the old system and the new system. The new IT slab system was introduced with the annual Budget for the financial year 2020-2021. The government has provided an option of choosing between the slab systems to the assesses. An income tax return can be filed online by the individual assessee under forms ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, and ITR-7 according to the source of income of the assessee. The returns can also be filed by an assesses earning below the tax slabs. Non-compliance with the provisions of Income Tax can attract serious penalties or prison, or both.

Tax Deducted at Source (TDS) in India

Tax deducted at source is the tax deducted by the payer before paying the amount to the payee. It is a form of direct tax. It is levied on incomes, dividends, asset sales, rents, interest payments by the bank. It is managed by the Central Board of Direct Tax (CBDT) and is governed by the Income Tax Act, 1961. The returns of TDS to filed by the assesses at every quarter.

The tax is imposed so that the burden of tax to be paid by the assesses at the end of the year is reduced infractions every month and the government too can earn some revenue beforehand. Different rates of tax are applicable to different types of transactions. TDS is a form of advance tax. The returns of TDS can be e-filed by the assesses.

Section 194IA, Section 194IB and Section 194IC of Income Tax Act,1961 govern the TDS to be deducted on sale of assets and Section 302 governs TDS on dividends. If the tax deducted by the employer is more than the actual liabilities then he/she can claim a refund for the same. Non-compliance with the provisions of TDS can attract penalties or prison, or both. Collection of TDS makes sure that there is no tax evasion by any individual as the employer is responsible to deduct the tax and the situation of tax evasion is not even possible. The statement of TDS is reflected in Form 26AS of the Income Tax Act, 1961 and can be claimed in the same.

Latest Update in Income Tax and TDS

The latest update in Income Tax and TDS via the government has come up with a lot of amendments under different norms looking to the current situation of the taxpayer/businesses in India. Here is the complete set of latest Income tax & TDS updates amendments, crucial notifications, and announcements made by the government also the important information that every taxpayer must know:

Budget 2021 Update

  • The Finance minister said that the senior citizens are not needed to furnish the ITR who only gets the pension and interest on the income.
  • In the normal event: from 6 years the time limit has been decreased from 3 years.
  • In some serious tax theft event: the evaluation can take place till 10 years when hiding of the income exceeds Rs 50 lakh.
  • The faceless dispute resolution committee and the mechanism are set to cut the litigations for the smaller assessee said the finance minister. Any assessee with a taxable income of Rs 50 lakh and the disputed income of Rs 10 lakh can take upon the society.
  • FM urges the faceless income tax appellate tribunal (ITAT) towards producing online solutions.
  • The tax audit limit beneath section 44AB has been prolonged from Rs 10 cr to Rs 5 cr in which 95% of the transaction concern to the businesses will get implemented through the digital method.
  • The Finance minister said that the advance tax liability on dividend income will increase on the condition post to the dividend payment or declaration.
  • Finance minister that the deduction beneath section 80EEA is urged to get prolonged to the loans taken up to 31/03/2022.
  • Finance minister 31/03/2022 is the said date there is no need to furnish the tax for the affordable housing project.
  • Tax incentives towards the IFSC as well as tax rest for aircraft leasing and rental firms declared by FM.
  • FM declares the pre-filled ITR in Budget 2021: Salary, Tax Payments, TDS are pre-filled previously. The Capital Gains, dividend incomes, and interest income have been enabled to get pre-filled.
  • FM said that for the event of the PF amount was cut down while not get deposited through the employer it will not be permitted as a deduction for the employer.
  • Beneath section 80IAC the deduction will be prolonged upto 31/03/2021 said FM.

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