Business & Finance
Changes introduced in Income tax returns: Check all details here
Income tax is an essential source of revenue for the country. Therefore the government introduces several changes in Income tax returns from time to time to suit the changing scenario of the economy. Since COVID-19 highly impacts the Indian economy, the Government has Changes introduced in income tax returns. To help you understand all these new changes, this article will provide all the details about these tax return changes.
A detailed look at the new Income tax changes:
- These changes will come into effect from 1st July.
- According to the new rules, TDS (Tax Deducted at Source) will be higher for certain sections of society.
- According to the new rules, income tax returns charges by the Income Tax Department will be more if a person has not paid TDS in the previous two years and if TDS is more than Rs. 50k each year.
- The new rules also find support in Budget 2021. According to the recent Budget, TDS can be deducted at a higher rate under certain situations. These situations are mentioned in Sec. 206AB. To check if one has filed the returns or not, one can visit the E-portal for taxpayers.
- The different rates that can be charged under the new rules are:
- Double rate (as mentioned in the relevant provision of section)
- It could be double the rate or rates which are in force in the current time.
- Or it can be a five per cent increase in TDS.
Some helpful features introduced and announced by the Income Tax Department:
Although increased TDS is a cause of worry for people, the Income-tax department has also announced certain reliefs for the people as mentioned below:
- The date for filing income tax returns is till 30 July rather than 31st May. CBDT (Central Board of Direct and Indirect Taxes) gave this extension through a notice in the wake of COVID-19.
- Extension in income tax returns’ dates will help people because these returns are very complex and need hectic data and record.
- The Board has also extended the date of the Form issuing. Earlier the date was 15th June, but now it is till 15th July.
- For further benefits to taxpayers, the Income Department has come up with a new ITR e-filing portal. This will help taxpayers in streamlining their tax returns.
- The new E-portal for taxpayers gives them the option to check if they have filed the earlier return or not. This will help them to avoid confusion.
- According to the tax Connect Advisory Services LLP partner, Vivek Jalan, if this portal were not introduced, then it would have been tough to implement sec. 206AB.
When will the new rules (higher Tax Deduction) not apply?
According to the new rules, there are certain exceptions where these new rules and higher tax deduction won’t apply. These situations are:
- Tax deduction under sec. 192
- Tax deduction for salary
- If Provident funds are withdrawn under Sec. 192A
- The money won under 194B and 194 BB like crossword, card games, lottery, puzzles etc., will not be charged under high TDS.
- If cash withdrawals exceed one crore rupees and Tax Is deducted under Sec. 194N then these new rules won’t apply
- Under 194BLC, ‘income against investment in the securitization trust ‘ will not come under the purview of new rules.
Conclusion:
The government has Changes introduced in Income tax returns, a higher tax deduction at Source if someone defaults from payment for two years. These new rules will apply from 1st July. There are also some benefits provided like e-portal, extension etc. Further, according to the government there would be some exemptions of some sections from these new rules.
A look at these new rules make it clear that these mean to reduce non-payment cases. It will remain interesting to see if it is successful in accomplishing its purpose or not.
Why are banks going to be closed?
The Reserve Bank of India has announced special times of year for moneylenders under three sections: the Negotiable Instruments Act, Holiday, Real Time Gross Settlement Holiday, and Banks’ Closing of Accounts. All banks to be closed from tomorrow for 6 days, including the public area, private area, foreign banks, agreeable banks, and regional banks, the nation overstay shut on these told occasions. The bank occasions differ, starting with one state then onto the next.
Every one of the banks stays shut on Republic Day (January 26), Independence Day (August 15), and Gandhi Jayanti (October 2), Christmas Day (December 25). Banks likewise stay shut on celebrations including Diwali, Christmas, Eid, Guru Nanak Jayanthi, Good Friday.
When Will, The Banks, Stay Closed?
Banks have 15 holidays in July; All banks will stay closed on July 16th in Dehradun for Harela Puja. Banks will remain closed on 17th July in Agartala and Shillong for U Tirot Sing Day and Kharchi Puja. July 18th is Sunday which is a national holiday for all Banks. Banks will remain closed on 19th July in Gangtok for Guru Rinpoche’s Thungkar Tschechu. July 20th marks Bakrid, so all Banks in Jammu, Kochi, Srinagar, Thiruvananthapuram will be closed for that occasion, and there will be a national holiday on 21st for Eid Al Adha. Still, the banks in Bhubaneswar, Gangtok, Kochi, and Thiruvananthapuram will be functional on that day.
What to do?
If you are a bank customer, please keep visiting your bank for a proper routine and get any urgent work done before these mentioned holidays.
List of Dates
- 16 July 2021- Friday – Harela Puja (Dehradun)
- 17 July 2021 – Saturday – U Tirot Sing Day / Kharchi Puja (Agartala, Shillong)
- 18 July 2021 – Sunday (Weekend off)
- 19 July 2021 – Monday – Guru Rinpoche’s Trungkar Tshechu (Gangtok)
- 20 July 2021 – Tuesday – Bakrid (Jammu, Kochi, Srinagar, Thiruvananthapuram)
- 21 July 2021 – Wednesday – Eid al Adha (Nation-wide except for Aizawl, Bhubaneswar, Gangtok, Kochi, and Thiruvananthapuram)
Conclusion
If you have any future work at the bank, here is a notice for you as banks to be closed from tomorrow for 6 days beginning one week from now because of the moving toward celebrations. According to the Reserve Bank of India (RBI) occasion schedule list, every nine occasions is a state-explicit occasion for various events. Consequently, on the off chance that you have significant bank-related work in July, this news article should have indeed helped you identify these holidays.
What has happened?
The R.B.I has banned Mastercard Asia and Pacific Pte. Ltd. from getting new customers into their company in India. Will the ban on Mastercard by RBI affect existing Indian customers? The ban has happened because Mastercard Asia, Pacific Pte Ltd have not accepted the terms and conditions of foreign card companies to store payment data in India.
The ban will take effect from the 22nd of July. The regulator of R.B.I said that “The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021. Notwithstanding the lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data.”
What will banks do now?
Being a reputed payment system operator, Mastercard was authorized to issue cards for payment in India under the Payment and Settlement Act System. But as of now, R.B.I has banned the production of credit, debit, or prepaid cards from Mastercard to new customers, from the 22nd of July. Banks will not be able to issue new mastercards from now on. R.B.I also added that “Mastercard shall advise all card issuing banks and non-banks to conform to these directions.”
As the order was issued, RBL Banks Said, “We await further information from Mastercard on RBI’s supervisory action. RBL Bank currently issues credit cards on the Mastercard network only.”
Will This Affect Existing Customers of Mastercard?
India has millions of Mastercard’s credit and debit card users. So, the ban on mastercard by RBI affect existing Indian customers.
According to the data released by PPRO, London Based Payments, Mastercard was held accountable for over 30% of total transactions done in India. So, if you are an existing customer of Mastercard in India, you don’t have to worry as this new regulation will not affect the existing customers, The regulator of R.B.I earlier mentioned that “This order will not impact existing customers of Mastercard.”, So if you own a Mastercard Credit, Debit or Prepaid card, you can use it without any hassle.
What is the R.B.I’s Payment Data Storage Rule?
In 2018, R.B.I.’s regulator issued a notice that “All system providers shall ensure that the entire data relating to payment systems operated by them are stored in a system only in India.”
It affected tech giants like Google, Paytm, Whatsapp, who used to store data in cloud-based storage outside India. The Bank further stated that “This data should include the full end-to-end transaction details or information collected or carried or processed as part of the message or payment instruction.”
RBI gave a half year time to guarantee new installment information stockpiling standards. The organizations were approached to report consistency and present a review report inside the course of events. Even after two years, a few unfamiliar organizations are yet to follow RBI information localization rules.
Conclusion
So it seems that the Indian Government has finally started getting strict in terms of digitized data storage. This will continue to affect tech companies who hesitate to show their privacy policy. Thus, all data will be more regulated and protected.
Introduction
Tax is an essential source of revenue for the government. But to avoid the exploitation of poor people due to high taxes, we have several laws providing certain exemptions to specific people. But still, there remains some ambiguity in his rules due to which the court and tribunals have to intervene and clarify particular provisions. Along the same row, the ITAT (Agra bench of Income Tax Appellate Tribunal (ITAT) has recently held that if a housewife makes a cash deposit of Rs. 2.5 lakhs after demonetization, it will not come under the purview of Income Tax. So, in this article, we will tell you all the details of this critical judgment on cash deposits by housewives up-to Rs.2.5 lakh..
What was the case, and what did the Tribunal hold?
Recently, a housewife named Uma Agarwal, a resident of Gwalior, appealed in the Agra bench of Income Tax Appellate Tribunal. She had a total income of Rs 1,30,810 in her income tax return filed for fiscal 2016-17. After demonetization, she deposited Rs 2,11,500 cash in her bank account. But the Income-tax department asked her how she got this much money in her account, to which she explained that she saved this amount from the savings of her husband, children, etc.
However, the CIT did not believe her, and they ordered to treat this money as unexplained money. Therefore the lady appeal in the matter. The appellate tribunal after hearing both the parties said that it allows the appeal because women’s contribution to the family is immeasurable. It further explained the earlier decision taken by the Supreme Court. In addition, the tribunal acknowledged that nearly 159.85 million women have household work as their primary occupation in Indian homes.
The Tribunal held that women save every money they get in gifts, but due to demonetization, they had to deposit this money in the bank to get new currency notes. Therefore the Tribunal exempts all the women who made cash deposits of less than Rs. 2.5 lakh during demonetization. This decision will become an important precedent for other future decisions.
Closing words:
This critical judgment on cash deposits by housewives by the Income Tax appellate tribunal is an important decision for housemakers. We often ignore The wives who do housework. Even government does not count their contribution in National Income. Therefore it becomes difficult for them to show how they collected their Income. But after this decision, there are chances that the scenario might improve in the future, and we will start valuing household work as we weigh the professional work.
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