Latest news with #AssociationofPersons
Mint
3 days ago
- Business
- Mint
Income Tax: ITR-2 enabled for filing return through online mode
The income tax (I-T) department has now enabled ITR-2 for filing returns through online mode with pre-filled data at the e-filing portal. ITR-2 is meant for the individuals who want to file their Income Tax returns (ITR) of income from sources such as salary, pension, capital gains, and other sources. Meanwhile, taxpayers who earn from business or profession are supposed to use ITR-3. 'In online mode, most details are auto filled, it is more user friendly. When someone opts for the excel utility, one can simply download it and fill at their leisure. Excel has been around for a longer period and the department has continued it whereas the online version is more user-friendly,' says CA Chirag Chauhan, a Mumbai-based chartered accountant. On July 11, income tax department released the excel utilities of ITR-2 and ITR-3 for AY 2025-26. Prior to that, excel utilities of only ITR-1 and ITR-4 were released. When taxpayers file their tax return through excel utility, they must generate a JSON file and upload it to the portal whereas the online utility is considered more user-friendly and convenient by taxpayers. ITR-1: It is meant for resident individuals with a total income of up to ₹ 50 lakh. ITR-2: It can be used by individuals or Hindu Undivided Families (HUFs) who are not eligible to file ITR-1 (Sahaj). ITR-3: This is meant for individuals and HUFs engaged in business or profession requiring the maintenance of elaborate books of accounts. ITR-4: It can be filed by a Resident Individual/ HUF/ Firm (other than LLP) who has income not exceeding ₹ 50 lakh during the FY, income from business and profession computed on a presumptive basis u/s 44AD, 44ADA or 44AE, income from salary/pension, one house property, agricultural income (up to ₹ 5,000) and other sources. ITR-5: This income tax form can be used to file ITR by a firm, Limited Liability Partnership (LLP), Association of Persons (AOP), Body of Individuals (BOI), and Artificial Juridical Person (AJP). For all personal finance updates, visit here
Business Recorder
28-06-2025
- Business
- Business Recorder
Only individuals restricted from cash withdrawals under Section 114C
LAHORE: Only individuals have been restricted from cash withdrawals, as of now, under Section 114-C, said tax experts. Talking to the Business Recorder, Ashfaq Tola said accounts in the names of Association of Persons may also be covered depending upon enforcement of the said provision, however, it is unclear, as definition of person differentiates individuals and AOPs u/s 80. No restriction has been imposed on companies for now. Now, he said, the Act has amended and Section 114C reads: The threshold that was previously to be notified by the federal government is now mentioned in the Fifteenth Schedule. Similar investments to securities or units of mutual funds have also been brought within the ambit of the restrictions in Section 114C (1). Now all accounts (except for Pension and Aasan accounts), not just current accounts of ineligible persons cannot be opened or maintained. Now any person cannot withdraw equal to or more than Rs 100 million in all bank accounts held by an individual. Another, Hussain Sherazi, said only individuals have been restricted from cash withdrawals as of now. Accounts in the names of AOPs may also be covered depending upon enforcement of the said provision. However, it is unclear, as definition of person differentiates individuals and AOPs u/s 80. No restriction has been imposed on companies for now. Similarly, some other experts added that cars unto Rs 7 million can be purchased by persons, including non-filers, without obtaining a certificate of eligibility for such purchase. This may potentially increase the demand for used cars, and adversely affect the market for brand new cars. In addition, under Section restriction 114(1)(b), pertaining to application for registering, recording or attesting transfer of any immoveable property, the threshold limitation has been fixed at more than Rs 100 million for commercial immoveable properties and more than Rs 50 million for residential immoveable properties. The transaction value taken shall be the fair market value as defined under Section 2(22AA) of the ITO. Copyright Business Recorder, 2025
Indian Express
21-06-2025
- Business
- Indian Express
Advance tax collection growth slows to 3.9%, income tax mop-up lower than FY25 level
Advance direct tax collections from the first installment in the current financial year 2025-26 grew by 3.87 per cent to Rs 1.56 lakh crore as on June 19 this year, slower than the growth of 27.34 per cent seen in the same period a year ago, data released Saturday by the Income Tax Department showed. While advance tax collections during April 1-June 19 for corporate tax grew 5.86 per cent to Rs 1.22 lakh crore, personal income tax or non-corporate tax collections recorded a slowdown, with advance collections falling by 2.68 per cent to Rs 33,928.32 crore. The advance tax collections for personal income at Rs 33,928.32 crore are lower than the first installment collections of Rs 34,863.78 crore seen in the previous financial year 2024-25 (as on June 19, 2024). The slower growth in advance tax collections for personal income tax seems to be more pronounced, a possible indication of the impact of the income tax cuts undertaken in the Budget as well as slowing income growth. Non-corporate tax includes taxes paid by individuals, Hindu Undivided Families (HUFs), firms, Association of Persons (AoPs), Body of Individuals (Bols), local authorities, artificial juridical persons. Every person, whose estimated tax liability for the financial year is Rs 10,000 or more, is required to pay his or her taxes in advance in the form of 'advance tax'. The advance tax has to be paid in four installments during the year. The first installment has to be paid on or before June 15 with payment of not less than 15 per cent of the advance tax. The second installment has to be paid on or before September 15 with 45 per cent advance tax as reduced by the amount paid in the earlier installment. The third installment requires 75 per cent to be paid on or before December 15, followed by 100 per cent payment on or before March 15. Overall, growth in net direct tax collections so far until June 19 also slipped into negative territory, declining 1.39 per cent to Rs 4.59 lakh crore from Rs 4.65 lakh crore in the corresponding period of the previous financial year. The net collections were lower as refunds increased by 58 per cent to Rs 86,385 crore until June 19 this year. Gross direct tax collections, however, rose 4.86 per cent to Rs 5.45 lakh crore this fiscal. Net corporate tax collections slowed to Rs 1.73 lakh crore, down 5.13 per cent from the year-ago period. Personal income tax or non-corporate tax collections increased marginally by 0.7 per cent to Rs 2.73 lakh crore. Securities Transaction Tax (STT) increased by 12 per cent to Rs 13,013 crore during the period. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
Indian Express
21-04-2025
- Business
- Indian Express
RBI mandates 2.5% additional run-off factor on digital deposits
The Reserve Bank of India (RBI) on Monday eased the liquidity coverage ratio (LCR) norms under which the banks will now be required to assign an additional 2.5 per cent run-off factor for digital deposits. 'A bank shall assign an additional 2.5 per cent run-off factor for retail deposits which are enabled with internet and mobile banking facilities (IMB),' the RBI said final norms on LCR framework. The run-off factor refers to the percentage of deposits that could be withdrawn by depositors in a stress scenario. Internet and Mobile Banking facilities (IMB) includes all facilities such as but not limited to internet banking, mobile banking and Unified Payments Interface (UPI) which enables a customer to digitally transfer funds from their accounts. The lower run-off factor will be a relief for banks as the draft norms had proposed an additional 5 per cent run-off factor for retail deposits which are enabled with (IMB). The regulator said that the stable retail deposits enabled with IMB will have 7.5 per cent run-off factor and less stable deposits enabled with IMB will have 12.5 per cent run-off factor (as against 5 and 10 per cent respectively, prescribed currently). RBI said that funding from non-financial entities such as trusts (educational/religious/charitable), Association of Persons (AoPs), partnerships, proprietorships, Limited Liability Partnerships (LLPs) and other incorporated entities will be categorised as funding from non-financial corporates and attract a run-off rate of 40 per cent as against 100 per cent currently. Unsecured wholesale funding provided by non-financial small business customers (SBCs) will be accorded the same treatment as retail deposits and so will attract an additional 2.5 per cent run-off factor. The final guidelines said that the level 1 high quality liquidity asset (HQLA) in the form of government securities will be valued at an amount not greater than their current market value, adjusted for applicable haircuts in line with the margin requirements under the Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF). 'These amendments would help improve the liquidity resilience of banks in India and would further align the guidelines with global standards while ensuring that such an enhancement is done in a non-disruptive manner,' the RBI said. The new norms will come into effect from April 1, 2026, and will be applicable to all commercial banks (excluding payments banks, regional rural banks and local area banks). According to Anil Gupta, Senior Vice President – Financial Sector Ratings, ICRA, As per RBI's estimate, the reported LCR of the banking system will improve by 6 per cent as of December 31, 2024. 'With an estimated HQLA of almost Rs 45-50 lakh crore for the banking system, this could free up the lendable resources by almost Rs 2.7-3 lakh crore and support the credit growth of the banks,' he said. This headroom can be equivalent to 1.4-1.5 per cent of additional credit growth potential for the banking system.
