Latest news with #I-TDepartment
Hans India
5 days ago
- Business
- Hans India
Simplified language in new Income Tax Bill a significant shift: FM Sitharaman
New Delhi: The use of simplified language in the new Income Tax Bill, 2025 marks a significant shift in making the provisions easier to understand, reducing the potential for misinterpretation and enhancing taxpayer-centricity and compliance, according to Finance Minister Nirmala Sitharaman. Urging the I-T Department to accelerate disposal of disputed tax demands pending before faceless appellate authorities and ensure timely resolution of litigation backlog, she said the Department should identify and withdraw departmental appeals falling below the revised monetary thresholds announced in Union Budget 2024-25 within 3 months. 'Ensure timely processing of tax refunds and proactive and timely resolution of taxpayer grievances. Analyse the grievances and devise strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances in the first place,' she said at an event here on the occasion of the 166th Income Tax Day. She also requested the Department to undertake region-wise performance reviews to help identify factors hindering performance and streamline operations through indicators such as grievance disposal, Orders Giving Effect (OGE) issuance, rectification completion and processing of condonation cases under Section 119. The Finance Minister also congratulated the Department for its commendable work in efficiently drafting the New Income Tax Bill, 2025 within the stipulated timeline. She appreciated that the Department is actively addressing the recommendations received from the Select Committee. Looking ahead, the Finance Minister emphasised the importance of continuing this momentum, reaffirming the potential for further technological advancements to enhance consistent and efficient service delivery. She encouraged the Department to reaffirm its duty to serve taxpayers with fairness, empathy and professionalism, earning public trust not just through policy but through conduct. 'The CBDT must ensure that we provide adequate support to the staff and officers in terms of better workspaces and residential accommodations, so they don't have to commute in difficult situations and conditions. I would emphasise that the CBDT and the Department of Revenue prioritise the swift development of family accommodations and improved workspaces,' said the Finance Minister.
Indian Express
5 days ago
- Business
- Indian Express
Is your ITR refund stuck? Check for these 7 mistakes
Income tax refunds are usually straightforward and tend to get processed smoothly. If you've filed your taxes but your refund is stuck or delayed, some small mistakes during filing could be the culprits behind. Whether you're under the new tax regime or the old one, errors like incorrect bank details, not verifying your return, or claiming ineligible deductions can hinder the process, delaying your refund. But these aren't all. Here are some common mistakes you should avoid to get your refund without hiccups. 1. Incorrect or inactive bank account details Tax refunds are only credited to pre-validated bank accounts. Errors like incorrect account details (such as the account number or IFSC), or if your account hasn't been linked to your PAN, can prevent the refund from going through. To prevent this, ensure you have pre-validated your bank account on the income tax portal. Also, make sure the bank account you provide is active and capable of receiving electronic credits. Dormant or certain NRE/NRO accounts may reject refund transfers 2. Filing under the wrong ITR Form There are different types if forms designated for different types of incomes. For instance, ITR-1 is for salaried individuals with income up to ₹50 lakh while ITR-2/3 are for capital gains, foreign assets, or business income. If you have filed your returns using the incorrect form, it can result in defective return notices or rejection. Always check the form that applies to you and use that to file returns. 3. Mismatch in TDS/TCS and Form 26 AS/Form 16 To check if the taxes deducted match the reported tax returns, the I-T Department compares your returns with Form 26AS, AIS, and TIS. If there's a mismatch, such as an error in your employer's Form 16, or your TDS has been incorrectly reported by your bank, the mismatch will likely trigger an automated review, pausing your refund. So, always cross-check tax credits before submitting your return. 4. Not e-verifying your return If you don't e-verify your tax return, it won't be processed. E-verification must be completed within 30 days of filing. You can do this using your Aadhaar OTP, net banking, a demat account, or even at an ATM (for certain banks). Without e-verification, your tax return will remain incomplete, and any refund due to you will be held up 5. Claiming excessive or wrong deductions Claiming deductions beyond what you are eligible for can raise red flags in the system. For instance, claiming ₹1.5 lakh under Section 80C without actual proof could lead to the system flagging the return for review or manual review. Claim only what you can support with investment proofs, salary slips, or bank statements. 6. Not reporting all income When filing returns, income from sources like freelance work, savings account or fixed deposit interest, or dividends, can be missed. But these are usually captured in your Form 26AS or AIS. But, if the returns don't match, it can hold up your refund. Reporting all income, no matter how small, is crucial to prevent delays. 7. Filing late Delays in filing returns will automatically affect the timeline of your refund. If you've missed the filing deadline, not only can your returns take longer to process, you may also lose interest on any refund due, as per Section 244A. Filing early can avoid such technical issues and ensure your refund reaches you quicker. 8. Ignoring notices or alerts If your filed tax return has issues, the Income Tax Department will likely send you a Defective Return Notice (under Section 139(9)). These are typically sent via email, SMS, or to your Income Tax portal inbox. Missing these alerts and failing to act on them can delay your refund. Therefore, always monitor your email, portal inbox, and messages for such notices. Getting your tax refund on time simply requires getting the basics right. Be it your account details, e-verifying your account, or selecting the right form to file, a little diligence now can save you weeks of waiting later.
Indian Express
6 days ago
- Business
- Indian Express
CBDT Chairman interview: To nudge taxpayers, I-T dept tracks online visits and filters PANs
FROM TRACKING the number of online visits of users on its portal to flagging high-value transactions and filtering out PANs involved in wrongful claims, the Income Tax Department is now leveraging artificial intelligence to identify patterns in taxpayer behaviour. For instance, repeated online access to Annual Information Statement, which is a detailed summary of a pre-filled Income Tax Return, could point to a tax return that needs to be filed, but is not being filed. Or, it is just possible that the taxpayer is unable to file returns correctly despite multiple attempts. The I-T Department can use this information to intervene and help the taxpayer. The idea is to progressively create a 360-degree profile of taxpayers' transactions and identify patterns and nuances in the filing of tax returns, said Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal in an interview to The Indian Express. The department is a repository of rich data — as many as 40 crore AIS were generated from an estimated 650 crore financial transactions in the last financial year. Based on AI-linked data analysis, the Department is of the view there is scope for improvement in the total number of returns being filed. While nine crore returns were filed by taxpayers last year, about 7.42 crore taxpayers are recorded as having viewed their AIS, returning as many as 3.5 times on an average to see their statements. AI is also helping raise 'red flags' in high-value transactions, but where returns are not being filed or the taxpayers are repeatedly committing a mistake in filing tax returns, prompting the Department to consider whether the taxpayer requires a 'harder nudge', Agrawal said. The use of AI has also shown that there were gaps, and sometimes offered pointers to cases where the deductions and the exemptions that were claimed were not correct. 'On an average, taxpayers visited about 3.5 times to see their AIS. This means the visits to see their AIS, in aggregate, was 24 crore times. This becomes a reference point for the taxpayer to see their ledger and take a call on what tax is to be paid and whether advance tax has to be paid or not. This means there is a wide acceptance of the information and the ledger in the form of AIS. 9 crore people are filing the returns, and you have more than about 40 crore AIS. So, there is a scope for further increase in the number of returns. On an average, taxpayers visited about three and a half times to see their AIS. That means the visits to see their AIS, in aggregate, was 24 crore times,' Agrawal said. The Income Tax Department has been taking measures for taxpayers to file returns correctly. In this direction, the Department on July 14 had initiated a large-scale verification operation across 150 locations in the country, targeting individuals and entities facilitating fraudulent claims of deductions and exemptions in ITRs that has resulted in identification of over 1.5 lakh PANs . 'This was basically an exercise in that direction. The taxpayer reports certain income, and while calculating their income, reports certain exemptions or deductions which are taken on face value and the system processes. But what we found through AI was that there were gaps, and they were really patterns that emerged, which reflected that the deductions and the exemptions that were claimed were not the correct deductions/exemptions. So, therefore, our pan-India exercise was undertaken to also flag and bring home the point that while we trust the taxpayer, but then at the same time, incorrect claims of deductions and exemptions is not acceptable,' he said. The CBDT Chairman said these actions were not specifically against the taxpayers but against the intermediaries or the facilitators who are misguiding the taxpayers. 'Those could be professionals or intermediaries. Through those, more than 1.5 lakh PANs have been identified. The exercise is still going on,' he said. For filing updated returns, 19,501 taxpayers were nudged based on data received under automatic exchange of information, which resulted in 62 per cent of them revising their returns and a total of 30,161 taxpayers declared foreign assets worth Rs 29,208 crore and foreign income of Rs 1,089 crore. Over Rs 9,000 crore were also identified to have been claimed in excess deductions under Section 80GGC. Nudging taxpayers through SMS and emails led to a reduction of Rs 963 crore in deductions and payment of Rs 409.50 crore in additional taxes as of June 18. Around 89 lakh updated ITRs have also been filed, generating Rs 9,577.06 crore in additional taxes as of June 18, 2025. The data analysis has led the department to flag gaps by sending mails to taxpayers. 'Whatever coordinates you have, you can inform. The second component is whosoever is filing the return, whether a correct return has been filed or not. In case, there is an obvious gap or something which needs to be flagged and from the taxpayer nudge him towards better compliance, and right compliance. And the third component is: if you find that the taxpayer is repeatedly committing a mistake, can there be a case of a harder nudge?' he said. However, the department is facing a roadblock as the email addresses provided for communications are turning out to be those of intermediaries or temporary. 'Since it is an end-to-end, e-enabled service that the Tax Department is providing, unless the taxpayer gives us the right coordinates of email and mobile, it becomes really very difficult for the department to correspond with the taxpayer,' he said. 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
Time of India
19-07-2025
- Business
- Time of India
Manipulated again: I-T busts fresh fraud in political donation tax deduction claims
In its continuing action against fraudulent tax deductions , the Income Tax (I-T) Department has found fresh cases of manipulation even after taxpayers were given the opportunity to correct their returns. According to officials, a number of individuals who had previously claimed deductions for political donations under Section 80GGC of the Income Tax Act have simply withdrawn those claims and shifted the same amounts to other deduction categories such as home loan interest and education loans. Earlier, the department had identified approximately 200 individuals whose high-value claims were suspected of being linked to tax evasion totalling ₹35 crore. Emails were sent to these individuals informing them that, during the verification of their income tax returns for the assessment years 2022–23 and 2023–24, deductions under Section 80GGC were found to be suspicious. Many of these claims, some running into lakhs of rupees, mentioned donations to both registered political parties and registered unrecognised political parties. After the Mumbai zone, the Telangana-Karnataka zone recorded the second-highest value of declared deductions under Section 80GGC. Of the ₹7,124 crore in deductions declared across the country, ₹1,641 crore came from this region. Within this zone, 15,223 employees in Telangana were suspected of having falsely claimed deductions for political donations. Despite the department offering a voluntary compliance window that encouraged taxpayers to withdraw incorrect claims and file updated returns within seven days, many individuals failed to respond to the notices. Among those who did respond, officials discovered that several had manipulated their updated returns. Meanwhile, many taxpayers who claimed deductions under Section 80GGC of the Income Tax Act, 1961, have received notices from the I-T Department. In response, the department has introduced a new facility on its portal. This feature provides guidance for taxpayers who have received notices under Section 158BC of the Income Tax Act, 1961, on how to respond. Live Events Section 80GGC of the Income Tax Act, 1961, allows individual taxpayers to claim deductions for contributions made to political parties or electoral trusts. These deductions are intended to promote transparency in political funding and are subject to specific eligibility rules, documentation requirements, and deduction limits. However, due to the increasing number of false claims being made under this provision, the tax department has initiated fresh measures to tackle the misuse of the deduction. Earlier this week, on Monday, the Income Tax Department launched large-scale search operations across the country targeting individuals and entities accused of facilitating fake tax deductions. Officials raided over 200 premises linked to people who were allegedly helping taxpayers to falsely claim deductions under various heads, including political donations, tuition fees, and medical expenses. A major focus of these operations was on deductions claimed under Section 80GGC, which allows contributions to registered political parties to be deducted from taxable income.
The Hindu
18-07-2025
- Business
- The Hindu
Income Tax Department enables online utility for ITR-2 filing
Individuals and Hindu Undivided Families (HUFs) having taxable capital gains income can now start filing Income Tax returns ITR-2 for financial year 2024-25. "Income Tax Return Form of ITR-2 is now enabled for filing through online mode with pre-filled data at the e-filing portal," the I-T Department said in a post on X. Parliamentary panel clears Income Tax Bill 2025 with 285 suggestions, to be tabled in Monsoon Session ITR-2 is filed by individuals and HUFs who have income from capital gains, but do not have earnings from business or profession. Last month, the Tax Department had enabled the online utility for filing ITR-1 and 4, which are simpler forms that cater to small and medium taxpayers. The government has already extended the deadline for filing ITRs for Assessment Year 2025-26 (financial year 2024-25) by individuals and entities who do not have to get their accounts audited to September 15, from July 31.
