Latest news with #1961
India.com
2 days ago
- Business
- India.com
Big Relief To Tax Payers! Deadline Extended For Processing Of E-Filed ITRs Which Were Erroneously Rejected
New Delhi: Central Board of Direct Taxes (CBDT) has announced Relaxation of time limit for processing ofreturns of income filed electronically which were incorrectly invalidated by CPC. CBDT has said that CPC Bengaluru has received grievances regarding erroneous invalidation, due to various technical reasons, while processing the returns filed electronically for different assessment years. The time period for processing these returns has lapsed, latest being 31.12.2024 for A Y 2023-24. Therefore, these returns need to be validated and processed as per law. "The matter has been considered by the Board and it has been decided to relax the timeframe prescribed in second proviso to sub-section (1) of section 143 of the Income-tax Act, 1961 (the Act) in exercise of its powers under section 119 of the Act. The Board hereby directs that returns of income filed electronically upto 31.03.2024 which have been erroneously invalidated by CPC shall now be processed. The intimation under sub-section (1) of section 143 of the. Act in respect of processing of such returns shall be sent to the assessees concerned by 31.03.2026," CBDT said in a circular. All subsequent effects under the Act, including issue of refund along with interest as applicable, shall also follow in these cases. In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made, CBDT said.
Time of India
2 days ago
- Business
- Time of India
ITR processing deadline extended for wrongly invalidated ITR filed electronically till March 31, 2024
Academy Empower your mind, elevate your skills In a move set to bring significant relief to taxpayers, the CBDT (Central Board of Direct Tax), in a circular issued today, has extended the deadline for the processing of ITRs that were electronically filed up to March 31, 2024, but had been wrongly invalidated by Income Tax Department Centralized Processing Centre (CPC), to the circular, CBDT had received various representations that CPC- Bengaluru (CPC) has gotten grievances regarding erroneous invalidation, due to various technical reasons, while processing the returns filed electronically for different assessment years. The time period for processing these returns has lapsed, latest being 31.12.2024 for AY 2023-24. Therefore, these returns need to be validated and processed as per law.'The matter has been considered by the Board and it has been decided to relax the time- frame prescribed in second proviso to sub-section (1) of section 143 of the Income-tax Act, 1961 (the Act) in exercise of its powers under section 119 of the Act. The Board hereby directs that returns of income filed electronically up to 31.03.2024 which have been erroneously invalidated by CPC shall now be processed. The intimation under sub-section (1) of section 143 of the. Act in respect of processing of such returns shall be sent to the assessees concerned by 31.03.2026', it adds .All subsequent effects under the Act, including issue of refund along with interest as applicable, shall also follow in these cases. In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made as laid down in Circular No.03/2023 dated 28.03.2023 vide CA Mohit Gupta, 'The move, under Section 119 of the Income-tax Act, 1961, relaxes the time limit for processing such returns, allowing intimation under Section 143(1) to be sent by 31st March 2026. However, refunds will not be issued where PAN-Aadhaar linkage is not completed, as per Circular No. 03/2023'Notably, if you fail to file your ITR by the due date, which is September 15, 2025 for AY 2025-26, you can still file a belated return before the 31st December of the relevant assessment year. However, if taxpayers miss out on this deadline as well, they can file an updated return within 4 years from the end of the assessment year in concern. Also, as per income tax law, the tax department has the power to process an duly filed ITR on or before the end of 9 months from the end of the financial year for which the ITR was filed.
Mint
2 days ago
- Business
- Mint
I-T Department extends deadline for e-filed tax returns erroneously rejected by CPC
India's apex income tax regulatory body, the Ministry of Finance's Central Board of Direct Taxes (CBDT), declared on Monday, 28 July 2025, that it is relaxing the time limit for income tax returns (ITRs) which were erroneously rejected by CPC and filed electronically up to 31 March 2024. 'The matter has been considered by the Board and it has been decided to relax the timeframe prescribed in second provison to sub-section (1) of section 143 of the Income-tax Act, 1961 (the Act) in exercise of its powers under section 119 of the Act. The Board hereby directs that returns of income filed electronically up to 31.03.2024, which have been erroneously invalidated by CPC, shall now be processed,' said CBDT in the release. CBDT's move is only to accommodate the mistakenly deemed invalid filings over technical reasons while processing the returns for different assessment years. According to the notice, the 'erroneously invalidated' return filings were brought to the CBDT's attention after many taxpayers filed their grievances with the Centralised Processing Centre (CPC) Bengaluru. 'The time period for processing these returns has lapsed, latest being 31.12.2024 for AY 2023-24. Therefore, these returns need to be validated and processed as per law,' said the tax body in the statement. The Income Tax Department will also send an official communication to the concerned taxpayers under Section 143(1) of the I-T Act by 31 March 2026 for processing their income tax returns. After the returns are processed, the Income Tax Dept. will issue the refund with interest if applicable in certain cases. However, if the taxpayer's PAN card is not linked with their Aadhaar number, then no amount of full or partial refunds will be issued. 'In those cases where PAN-Aadhaar linkage is not found, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made,' said the Income Tax Department. Indian taxpayers are now preparing themselves to file their income tax returns for the Financial Year 2024-25, i.e., assessment year 2025-26. However, the Income Tax Department has extended the filing deadline to 15 September 2025. PAN card, Aadhaar card, Bank passbook, Tax deduction certificates, Annual Information Statement (AIS), Taxpayer Information Summary (TIS), Investment proofs and deductions, Capital gains and asset statements, Foreign income and assets documentations, and Past tax returns and audit reports, are the documents required to be kept ready before filing income tax returns. Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Readers should consult a qualified tax advisor for guidance specific to their financial circumstances.
Mint
3 days ago
- Business
- Mint
TDS was deducted on employee health insurance payout. Can I get a refund ?
During the previous financial year, my wife had an emergency caesarean delivery, and the baby was admitted to NICU for 5 days. A bill of ₹ 74,505 was generated, of which ₹ 62,833 was approved by the employer. At the time, the hospital had applied for the renewal of income tax exemption status under section 17(2) of The Income Tax Act 1961, read with rule 3A(1) & 3A(2) of Income Tax Rules, 1962, but the certificate was still awaited. Due to this, the sanctioned amount was subject to a tax deducted at source (TDS) of ₹ 19,604 and only ₹ 43,220 was credited. However, the hospital has received the tax certificate now with retrospective effect from 1 July 2024. As a result, the employer will not be liable to deduct tax u/s 192 of the Income Tax Act,1961 for such a sum. I wish to avail the refund of this TDS through income-tax return (ITR). Under the income-tax laws, the value of any benefit or amenities provided by the employer to an employee is taxable as perquisites, subject to prescribed exceptions. As per the related provisions, medical reimbursements given by the employer for medical treatment of specified diseases/ailments to employees or their specified families are not considered taxable in the hands of employees, subject to satisfaction of specified conditions. It is assumed that your case falls under the prescribed diseases/ailments, the retrospective approval certificate of the hospital covers the period of treatment, and all other conditions are satisfied. Hence, the reimbursements may be considered as non-taxable. Since the reimbursements were taxed at the withholding stage and a tax was deducted at source by the employer, you may consider the same as non-taxable while filing your income-tax return (ITR) for the FY 2024-25. While filing the ITR, you may directly exclude the non-taxable reimbursement amount from the salary reported in Schedule Salary (S) under Section 17(2). As this is a non-taxable reimbursement and not an exempt income, the same may arguably not be reported as an allowance exempt under Section 10 in Schedule S, or in Schedule Exempt Income (EI). In case of any queries from the tax authorities (say on account of variance with the salary reported by an employer in Form 16), it will need to be responded, accordingly. You should also retain supporting documents, such as the hospital's approval certificate and medical bills, to justify the reduced salary reported in the ITR, if required. Also note that this is a non-taxable reimbursement and does not form part of the specified disallowances under the new tax regime. Hence, the above treatment can be considered irrespective of the tax regime. Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.
Mint
21-07-2025
- Business
- Mint
How spousal maintenance is taxed after divorce
NEW DELHI : While a failed marriage causes immense emotional distress, its financial and tax implications can't be understated. In India, a court decides how much maintenance one spouse will pay to the one earning less or having no income at all. The maintenance could be in different forms: one-time, periodic, or transfer of assets. Different types will have different tax treatment. However, it must be noted that the Income Tax Act,1961, does not contain specific provisions on the same. Relevant case laws, along with analogous provisions, are used to determine its taxability. Tax on maintenance The lump sum maintenance a spouse receives is not taxable. It is tax-exempt because it is considered a capital receipt, which does not fall within the ambit of the Income Tax Act. Sometimes, a spouse might prefer regular maintenance, that is, a monthly payment. Regular maintenance is taxable as 'income from other sources" as it is considered a revenue receipt, said chartered accountant Naveen Wadhwa, vice-president, research and advisory division at Taxmann, an online source for taxation research. However, chartered accountant Ashish Karundia has a different view. "The periodic payments are the very condition of divorce, based on which the court issues the divorce decree. The spouses remain married at the time when the periodic payments are agreed, so no question of taxation on this amount for them being relatives. Since divorce was agreed upon on this very condition, the amount remains tax-free even after the divorce decree is issued," he said. Any fresh arrangement, not part of the initial divorce decree, will be taxable. For example, spouses may demand enhanced compensation adjusted against inflation. 'The enhanced amount becomes taxable in the hands of the receiving spouse because it happens after the divorce decree was issued," Karundia added. Tax on transfer of assets Suppose a spouse transfers property to the other spouse as part of maintenance. Under Section 47 of the Income Tax Act, a transfer to a former spouse as part of a divorce settlement is not regarded as a 'transfer" for capital gains purposes. However, if the former spouse generates income from it via receiving rent or sale, it will be taxed in his or her hands. "If a property is gifted between spouses, no capital gains tax arises to the donor. The recipient spouse will not be taxed either on the value of the gifted property because a spouse falls within the definition of relative. However, the clubbing provisions will apply to any income generated further on the same," Wadhwa said. 'It ceases to apply if the transfer is made in connection with an agreement to live apart, in which case the income from the property would be taxable in the hands of the recipient ex-spouse," he added. If property is transferred after the divorce has taken place (excluding a transfer that had been agreed upon as a precondition), it will be taxed in the hands of the receiving spouse. Separation Any kind of maintenance will not be taxable if a couple lives separately without divorce because, in the eyes of the law, the spouses are still married and would qualify as relatives, Karundia said. Can a paying spouse claim a tax deduction? It is not possible. Maintenance is considered a personal expense and not tax-deductible for the payer. However, some courts might consider your post-tax salary instead of gross salary when deciding the amount of alimony. It is important to note that deductions such as employee provident fund, insurance premiums will not be excluded from your salary when the court determines your income. 'Different courts look at it differently. It is up to the spouse and the lawyer to present their case wisely. For example, a person earning ₹1 lakh a month may have to pay ₹20,000 in taxes. If a court asks him to pay 50% of his gross salary, ₹50,000 per month will go to the spouse, ₹20,000 in taxes, and he will be left with only ₹30,000. That said, the court may only consider his post-tax salary, that is, ₹80,000," Karundia said. In cases where the court has specifically ordered that a certain property will go to the spouse, the income out of such property will be taxable in his or her hands directly. The paying spouse will not have to add such income to his or her taxable income. For example, a spouse owns a two-floor house. 'If the court orders that rental income from one of the floors will belong to the other spouse, it will be taxable in the latter's hands. This arrangement is called an overriding charge, that is, redirecting income to the other party before it becomes taxable for the original recipient," Karundia added.
