Latest news with #IncomeTaxReturn
News18
19 hours ago
- Business
- News18
ITR Filing 2025: Rs 12 Lakh Tax Rebate Not For FY24–25; What Taxpayers Must Know
Last Updated: The income tax department extended the FY2024-25 tax filing deadline to September 15, 2025, due to changes in utility forms. Income Tax Return 2025: The income tax department has already extended the deadline for tax filing for FY2024-25 (assessment year FY2025-26) to September 15, 2025 from July 31, 2025. The tax department linked the changes in the utilities forms for FY2024-25 as a major reason for the delay in the release of these utilities, leading to the extension of the deadline for this filing year. One of the key confusions among taxpayers is on the tax rebate under the new tax regime. The changes in the new tax regime—especially the tax rebate on income up to Rs 12 lakh—will only come into effect from the financial year 2025–26, starting April 1, 2025. This means that the income earned between April 1, 2024, and March 31, 2025, won't be eligible for these new benefits. So, if you're filing your ITR in July 2025, the old tax rules still apply. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
20 hours ago
- Business
- Mint
Freelancing with foreign clients? Know Schedule FA and FIS compliance rules
Income earned by freelancers from foreign clients—whether through contracts, content creation, or platforms like YouTube and X (formerly Twitter)—is fully taxable in India. But the bigger concern is proper reporting in your Income Tax Return (ITR). Such income must be disclosed in Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income). Failing to do so may trigger scrutiny under the Black Money Act. As you prepare to file your tax return for FY25, know the taxation rules on your foreign income earned as a freelancer to ensure correct reporting. Also read: Earning global income as a freelancer? Key income tax provisions you must know How is foreign income taxed? Foreign payments received for services—whether from a US company or a global platform—are treated as export of services and taxed as business income under "Profits and Gains from Business or Profession", taxed as per your slab. This applies to even payouts received from social media platforms like X as the money is paid by the company headquarters in the US. Similarly, for Youtube payouts, tax rules will depend on whether its Indian or foreign entity pays it, as per Akhil Chandna, partner, Grant Thornton Bharat. 'Income generated from platforms such as X or Youtube may be classified as either domestic or foreign income, depending on the origin of the payment. If the payment is made directly by a foreign entity, it is treated as foreign-sourced income. Conversely, if the payment is through an Indian entity, the income is treated as Indian-sourced." Experts differ on whether earnings from social media should be treated as business income or classified under Income from Other Sources (IFOS). Chandna says when someone is fully dedicated to content creation as their primary occupation, the earnings are treated as business income. 'On the other hand, if the income is incidental and not significant compared to other sources, it is categorised as 'Income from Other Sources" and taxed accordingly," he added. The second condition could apply to salaried individuals who have premium subscription and may be getting small payouts sporadically. Ashish Karundia, founder of CA firm Ashish Karundia & Co, says even one stray transaction may qualify as business. 'You are inviting the taxman to your door by not declaring it as business income. The argument that it is IFOS as such transactions are far and few, and may not find favour in the courts, given the way 'business' is interpreted over the periods," he said. So, what should you do? Ajay Rotti, founder and CEO, Tax Compaas says for smaller amounts upto ₹1-2 lakh in a year, even if someone reports the income as IFOS, the chances of the tax department disputing it are abysmal. 'As long as you pay tax on the income, the department will not question small amounts. Bigger amounts get attention as that is clearly business income," he said. Filing such income as business income has a benefit though, Rotti added. 'You can claim the monthly subscription fee and other associated expenses like the mobile data bill as business related expenses," he explained. However, even when declared as IFOS, you must declare it in schedule FA and FIS. Also read: How ultra HNIs can future-proof overseas education for their children What and how to report in ITR Foreign income is to be reported in two Schedules in the ITR— FA and FSI. Schedule FA is filled as per calendar year, whereas reporting of incomes in Schedule FSI is as per financial year. So, for the current assessment year filing, you will report incomes earned from 1 January 2024 to 31 December 2024 in Schedule FA, while Schedule FSI will have incomes for FY25, i.e, from 1 April 2024 to 31 March 2025. In Schedule FSI, you must report the details of income that you earn or receive from any source outside India. Make sure you also include this income separately under the appropriate head–business or IFOS–in your total income computation. Additionally, mention the relevant head of income under which you have reported this foreign source income in the corresponding column. In Schedule FA, these disclosures must be made under Table G, said Karundia. Columns 7 to 9 should be filled carefully, including the amount and the relevant Schedule where it is reported. The reported amount must be converted into INR using the telegraphic transfer buying rate of the State Bank of India. Next, if tax was withheld on the income in the origin country, taxpayers can claim tax relief on it by filing Schedule TR (Tax Relief). To avoid paying double tax, one can get Input Tax Credit, for which Schedule TR must be filed. In Schedule TR, you need to give a summary of the detailed information already furnished in Schedule FSI. Also, to claim FTC you must also submit Form 67 along with the ITR, said Chandna. Payments via PayPal or Stripe? When you receive foreign income in your Indian bank account, you must get an FIRC or Foreign Inward Remittance Certificate from your bank to confirm receipt of money. While the certificate is not to be furnished in ITR or elsewhere, FIRC supports the source and nature of foreign income and hence is a useful proof in case of scrutiny or for GST refund purposes. However, many international companies pay via wallets like PayPal and Stripe, where the money is deposited into the bank account in INR, rather than the foreign currency. In this case, the bank may not issue an FIRC. You can get an MT103 message from the remitting bank and an inward remittance certificate from the recipient bank, said Karundia. Chandna said these platforms have streamlined the process, by providing system-generated Foreign Inward Remittance Advice (FIRA), which suffices in most cases. Alternatively, you can get an MT103 issued from the intermediary bank in India, said Karundia. 'In transfers through platforms like PayPal or Stripe, a bank in India, the intermediary bank, may have an arrangement with a bank in the remitter country. This remitting bank generally issues the MT103 certificate." Also read: The confirmation bias: Why investors see what they want to see, and often get it wrong GST compliance If your annual freelance income exceeds ₹20 lakh, GST registration is mandatory. Since services to foreign clients qualify as zero-rated exports, you don't charge GST but must comply by registering. Karundia explained that you have two options–file a Letter of Undertaking or LUT to raise an invoice without GST, or raise the invoice with tax and don't file LUT. 'In the second option, you pay the GST using your own input tax credit or cash and then claim a refund." The LUT route is easier as it doesn't involve claiming a refund. It should be noted that LUT should be filed at the start of the year before the services are exported to a foreign client and not retrospectively. 'It's an easy online process done on the GST portal," said Karundia.
News18
2 days ago
- Business
- News18
Income Tax Return: How To E-Verify Your ITR? Know Steps
Last Updated: Verifying your ITR is a mandatory step to complete the filing process. After filing your Income Tax Return (ITR), it is important to verify it. Without verification, your ITR won't be considered valid. The easiest and quickest way to do this is through e-Verification, which can be done right on the Income Tax portal. You can choose any of the following methods to complete the process: Digital Signature Certificate (DSC) Aadhaar OTP Electronic Verification Code (EVC) using: – Bank account – Demat account – ATM (offline method) Net Banking What You Need Before e-Verifying: – You must be a registered user on the income tax e-filing portal. – Keep your Acknowledgement Number ready (useful for verifying without logging in). – You must have filed your ITR yourself or through a tax expert. – Click on 'e-Verify Return" – Enter your PAN, Assessment Year, Acknowledgement Number, and mobile number – Enter the OTP sent to your phone – Choose 'e-Verify using DSC" – Download and install the emsigner utility – After installation, choose your certificate provider and sign in with your password. Using Aadhaar OTP (Generate New) – Go to 'e-Verify Return" on the portal – Fill in your details and enter the OTP received on your mobile – Select 'e-Verify using OTP on mobile registered with Aadhaar" – Tick the checkbox to agree and generate OTP – Enter the OTP and validate. Using Aadhaar OTP (If you already have OTP) – Follow the same first few steps as above – Choose 'I already have an OTP." – Enter the OTP and click continue. Using EVC (If you already have the code) – Go to the portal and enter your details – After OTP verification, choose 'I already have an EVC." – Enter the EVC and continue Generate EVC via Bank Account – Log in to the portal and enter your details – Choose 'Through Bank Account" – Enter the EVC received on your registered mobile/email and verify Generate EVC via Demat Account – Similar steps to a bank account – Choose 'Through Demat Account" and enter the EVC received to complete the process. Using Net Banking – Log in to the e-filing portal – Choose 'e-Verify using Net Banking" – Select your bank and log in with your net banking credentials – From your bank dashboard, click the link to access the income tax portal – You will be redirected to your e-Filing account to complete verification. Using a Bank ATM (Offline) – Swipe your ATM card at the bank's ATM (only for supported banks) – Enter your PIN – Choose the option 'Generate EVC for Income Tax Filing" – Use the generated EVC to e-Verify by selecting 'I already have an EVC" on the portal. It is important to note that e-Verification is mandatory to complete your ITR filing. Choose any method that's convenient for you and complete it within the given time. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : Business income tax return itr view comments Location : Delhi, India, India First Published: July 27, 2025, 08:30 IST News business Income Tax Return: How To E-Verify Your ITR? Know Steps Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
2 days ago
- Business
- News18
ITR Filing: Who Is Mandated To Get Their Accounts Audited And What's The Deadline?
Last Updated: If the total sales, turnover, or gross receipts of a business exceed Rs 1 crore in a financial year, an audit is mandatory. Filing the Income Tax Return (ITR) is mandatory for individuals and businesses when their earnings from all sources in a financial year exceed a certain limit. However, some taxpayers also need to get their accounts audited under the Income Tax Act, 1961, before filing their ITRs. Let's take a look at important details about ITR filing for taxpayers who need their accounts to be audited. Who Needs Tax Audit Before ITR Filing? The audit requirement is based on income, turnover, or the nature of the business. Under Section 44AB of the Income Tax Act, 1961, businesses and professionals need their accounts to be audited under the following circumstances: 1. Businesses · If the total sales, turnover, or gross receipts exceed Rs 1 crore in a financial year, an audit is mandatory. · For businesses opting for the presumptive taxation scheme under Section 44AD, an audit is required if the declared income is lower than the presumptive rate (8% or 6% for digital receipts), and the total income exceeds the basic exemption limit. Trusts and NGOs with total income exceeding the basic exemption limit (before claiming exemption under sections like 11 or 12) also need an audit. What Is the Audit Deadline? For the financial year 2024–25 (assessment year 2025–26): · The due date to complete a tax audit is September 30. · The deadline for filing the ITR after audit is October 31. Why Is the Audit Important? Tax audits ensure transparency, accuracy in financial reporting, and compliance with the Income Tax Act. Failing to get accounts audited when required can lead to penalties of 0.5 per cent of turnover, or up to Rs 1,50,000, whichever is lower. If you run a high-turnover business, have professional receipts above the threshold, or opt out of presumptive schemes, check whether you need an audit. Meeting the audit deadline ensures smooth ITR filing. Missing the tax audit deadline may lead to an income tax notice and hefty penalties. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India Today
4 days ago
- Business
- India Today
Filing ITR under old regime? Claim these 5 home loan tax benefits
Owning a home is a big milestone, but did you know it can also help you save a good amount of tax? If you are paying off a home loan, there are smart ways to reduce your tax bill when you file your Income Tax Return (ITR) for the financial year 2024-25. Many homeowners often miss out on these benefits simply because they don't know about them or forget to claim them on a simple guide to five key home loan tax benefits you can claim under the old tax regime while filing your ITR this ON HOME LOAN INTEREST UNDER SECTION 24(B)If you live in your own house, you can claim a maximum deduction of up to Rs 2 lakh every year on the interest paid for your home loan under Section 24(b). For properties that are let out, there is no limit on the interest deduction. You can claim full interest paid as a deduction against your rental income. However, you can set off only a Rs 2 lakh loss from house property against other income in one year. The remaining loss can be carried forward for up to eight news, from this year, you can treat two properties as self-occupied for tax purposes, which makes tax planning easier for families with more than one PRINCIPAL REPAYMENT UNDER SECTION 80CIf you are repaying the principal part of your home loan, you can claim a tax deduction of up to Rs 1.5 lakh every year under Section 80C. This limit also covers stamp duty and registration charges, but you can claim this only once you get possession of your property and hold it for at least five DEDUCTION FOR FIRST-TIME BUYERSFirst-time home buyers can claim even more savings. If you got your home loan approved during FY 2016-17, you may claim an extra Rs 50,000 under Section 80EE. If you bought an affordable house between April 2019 and March 2022, Section 80EEA allows you to claim up to Rs 1.5 lakh remember, you can claim only one of these, not CAPITAL GAINS TAX UNDER SECTION 54If you sell a house and make a profit, you can avoid paying tax on that profit if you use it to buy or build another house in India. Under Section 54, you can buy the new house within one year before or two years after selling the old one, or build it within three can claim this even if you take a loan for the new house, and still claim other deductions on the loan HOME LOAN? DOUBLE THE BENEFITSadvertisementIf you take a joint home loan with a co-owner, like your spouse, you can both claim separate deductions on the principal and interest. So, under Section 80C and Section 24(b), you can both claim individually, which means double the tax savings for the same one must remember that all these above benefits are available only under the old tax regime. If you have a big home loan, the old regime could be more useful as the new regime does not allow these deductions. So, keep all your loan papers, bank statements and interest certificates ready when you file your ITR for Assessment Year 2025-26.- Ends
