Latest news with #RuchikaBhagat
Mint
7 days ago
- Business
- Mint
Income tax filing FY 2024-25: Common delays, penalties, and how to avoid them
Many taxpayers delay and put off filing their income tax returns (ITRs) until the last moment. This leads to delay in refunds, avoidable stress and possibility of financial penalties. Even though over the years the process of income tax filing has become simpler, procrastination continues to complicate the process for taxpayers. Here is why delays take place and how you can avoid them this year i.e., while filing the tax returns for the financial year (FY) 2024-25. Taxpayers generally wait for the official release of updated ITR forms along with filing utilities. This usually comes after the previous financial year has ended. Important documents such as Form 16, Form 16A, annual information statements (AIS) are generally available only after mid June. In such a case, filing of tax returns before receiving the complete set of documents may result in data mismatches and incorrect income tax return calculations. Confusion around the default tax regime along with recent updates on the income tax portal have also made many salaried and first time income tax filers hesitant to start early. The income tax submission deadline has also been extended to September 15, 2025 to help taxpayers in filing taxes in a timely manner. Therefore, delays are not just due to technical difficulties. Many taxpayers feel overwhelmed and confused by the paperwork along with the fear of making submission mistakes. There's also a tendency to assume that there is always more time, until the deadline comes extremely close causing more stress. CA Ruchika Bhagat, MD, Neeraj Bhagat & Co., explains, 'Tax filing often takes a backseat due to fear of errors or the mental block associated with finances. People delay it thinking there's always more time, only to panic near the deadline. The solution lies in setting a specific date, breaking the task into smaller steps, and treating filing as a financial responsibility, not a burden.' Set a tax filing reminder: Once you have accumulated all the relevant documents from the official portals such as Form 16, Form 16A, annual information statement (AIS) post the same you should set a tax filing reminder. Set a target of one week or fifteen days within which you will compile and submit your income tax returns. Gather all tax documents early: This includes salary slips, rent receipts, bank interest proofs, Form 16 and investment details along with other similar relevant documents. This will help you in making your tax filing more smooth and seamless. Check Form 26AS and AIS online: To verify income and tax deposited at source (TDS) details match your records as provided on the income tax portal. If required write your entire tax calculation down on a sheet of paper. Compare old vs new tax regimes: To choose the one that gives you the best tax savings. For this you can also take professional guidance after discussing your individual case with a certified Chartered Accountant. Use trusted e-filing platforms: There are several prominent e-filing platforms that you can reach out to and file your tax in seamless fashion. You can also consult a CA for accurate and stress-free tax filing. The objective behind filing taxes early is to try and ensure that you receive refunds faster. Sometimes within two to three weeks. Filing on time also helps in avoiding late fees, unwanted errors and brings clarity and peace of mind. Most importantly it permits you to focus on planning your finances for the rest of the year in an efficient manner. If you miss the ITR deadline for FY 2024-25 i.e., September 15, 2025, then the income tax department may levy a penalty under Section 234F based on your income level. Income level Filing after due date but on or before 31 Dec 2025 Late filing fee (Section 234F) Up to ₹ 2.5 lakh Yes No penalty Above ₹ 2.5 lakh but up to ₹ 5 lakh Yes ₹ 1,000 Above ₹ 5 lakh Yes ₹ 5,000 Note: The above table is illustrative in nature and is open to change and amendments as per the provisions of the income tax act. For personalised legal or tax advice, please consult a qualified tax advisor or lawyer. Therefore, to ensure that you save yourself from the hassle of paying late fines, fees and filing complicated forms it is important for you to take proactive steps and ensure that your income tax return is filed within the stipulated time. Disclaimer: This article is for general information purposes only and should not be considered as professional tax advice. For personalised guidance, please consult a certified Chartered Accountant or a qualified tax advisor.
News18
04-06-2025
- Business
- News18
Can You File ITR Without Form 16? A Tax Expert Shares Insights Into Digital Form 16
Last Updated: CA Ruchika Bhagat, managing director of Neeraj Bhagat & Co, shares insights about the Form 16, especially Digital Form 16: The online ITR filing 2025 process has started. The income tax return (ITR) process has often been seen as complex, especially for salaried individuals who are unsure about income details, TDS deductions, and applicable exemptions. However, with the introduction of the Digital Form 16 and advanced data integration by the income tax department, the ITR process has become significantly easier and more streamlined. CA Ruchika Bhagat, managing director of Neeraj Bhagat & Co, shares insights about the Form 16, especially Digital Form 16: What Is Digital Form 16? Form 16 is a certificate issued by employers to their employees, containing details of the salary paid and the tax deducted at source (TDS) on it. Traditionally, salaried individuals relied on this form to file their ITR manually, deciphering each component of income, deduction, and tax paid. Now, with the digital integration of Form 16 into the Income Tax portal, much of this data is auto-populated in the ITR filing form, reducing the scope for errors and easing the burden on taxpayers. How Digital Form 16 Works This data is then automatically reflected in the pre-filled ITR forms (especially ITR-1 and ITR-2), saving time and effort for salaried taxpayers. Benefits of Digital Form 16 for Taxpayers 1. Simplified Filing Process: The automation eliminates the need to manually enter income, TDS, and deduction figures. Even taxpayers with limited tax knowledge can now file their returns with minimal effort. 2. Reduces Errors: Manual errors in key fields like PAN, salary income, or deductions can lead to notices or delays in processing. Auto-extraction ensures data accuracy, matching it exactly with the employer's TDS returns. 3. Faster Processing of Refunds: Since the data is clean and directly matched with the backend system, tax returns are processed quickly, and refunds (if any) are issued sooner. 4. Convenience for Busy Professionals: Salaried individuals, especially working professionals, no longer need to spend hours organising Form 16 or seeking professional help for basic returns. 5. Eco-Friendly and Paperless: No need to print or physically handle documents. Digital Form 16 aligns with the government's 'Digital India" initiative and promotes a paperless ecosystem. How to File ITR Using Digital Form 16 1. Log in to the Income Tax Portal: Visit and log in using your PAN and password. 2. Select Pre-filled ITR: Choose the applicable ITR form (mostly ITR-1 for salaried individuals) and download the pre-filled version. 3. Review Auto-filled Data: Check all fields auto-populated using Digital Form 16, including income, TDS, and deductions. 4. Update Additional Deductions (if any): If you have made additional investments or donations after submitting proof to your employer, manually add those. 5. Validate and Submit: Once everything is reviewed, validate the return, e-verify it via Aadhaar OTP or net banking, and submit. Yes, Form 16 is just a certificate issued by your employer summarising your salary and TDS. It is not mandatory for filing your return. However, the salaried individuals are advised to file ITR only after Form 16 comes in as it 'makes the process simpler, safer, and less error-prone", according to another tax expert. Employers must issue Form 16 by June 15 of the next financial year after deducting TDS. So, for FY 2024-25, your employer must provide Form 16 by June 15, 2025. About the Author 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!
India Today
24-04-2025
- Business
- India Today
Gold vs mutual funds: What should you invest in for better returns?
If you're thinking about where to put your money, whether in gold or mutual funds, then you're not alone. Many people wonder which of these two options can give better returns right now. Both are popular, both have their own strengths, and both work A SAFE HAVEN IN TOUGH TIMESGold is often seen as a safe investment. When markets are shaky or inflation rises, many investors turn to gold. That's because gold tends to hold its value and even grow when other assets to CA Ruchika Bhagat, MD, Neeraj Bhagat & Co., 'Gold, traditionally seen as a safe-haven asset, can be a good hedge against inflation and economic uncertainty. Through digital options like Sovereign Gold Bonds (SGBs) or Gold ETFs, investors can systematically invest in gold with ease.' The yellow metal recently surpassed Rs 1 lakh amid growing tension around the world and trade war between the US and to Nilesh D Naik, Head of Investment Products, (PhonePe Wealth), 'Given the recent developments around trade tariffs, dollar weakening and the geopolitical uncertainty, gold has regained the spotlight.'But here's the catch, gold doesn't pay you any interest or dividends. You earn only when the price goes up, and you sell it at a profit. Also, gold prices can be unpredictable in the short term. They may rise quickly and drop just as long-term returns have historically lagged behind equity mutual funds, and it doesn't generate income, only capital appreciation,' said CA Ruchika FUNDS: A GROWTH-ORIENTED CHOICEOn the other hand, mutual funds, particularly equity funds, are linked to the stock market. When the market does well, your mutual fund investment can grow faster than gold. Over the long term, equity mutual funds have given strong returns, often beating inflation and other traditional Ruchika Bhagat stated, 'Mutual funds, especially equity-oriented ones, offer exposure to a diversified portfolio of stocks, managed by professionals. Over the long term, they tend to outperform gold in wealth creation, thanks to the power of compounding and market growth. SIPs in mutual funds are particularly effective for disciplined investing, rupee cost averaging, and harnessing market volatility.'TAX IMPLICATIONS: GOLD AND MUTUAL FUNDSCA (Dr) Suresh Surana said, 'Prior to 23rd July 2024, if gold capital assets are sold within a holding period of 36 months, the gains are treated as short-term capital gains and taxed at the individual's applicable marginal slab rates. If such asset is held for more than 36 months, the gains qualify as long-term and are taxed at 20% u/s 112 with the benefit of indexation.'advertisementOn the other hand, if you hold listed equity mutual fund units for over 12 months before selling, the profits are treated as long-term capital gains; otherwise, they're considered short-term gains, he added.'The short-term capital gains would be taxed at the rate of 15% (enhanced to 20% w.e.f. 23rd July 2024) u/s 111A of the Income Tax Act ('IT Act'). The long-term capital gains are taxed at 10% (enhanced to 12.5% w.e.f. 23rd July 2024) u/s 112A of the IT Act provided such long-term capital gains exceed the threshold limit of Rs. 1.25 lakh in a financial year (previously Rs. 1 lakh prior to Finance (No. 2) Act 2024),' Surana LOOKING BETTER RIGHT NOW?At the moment, gold is performing well because of global worries and inflation concerns. But experts believe that if the market becomes stable and interest rates fall, mutual funds, especially equity ones, could bounce back strongly.'For most investors, mutual funds should be the core SIP choice, especially for long-term goals like retirement or children's education. Gold can be a complementary asset, perhaps 5–10% of your portfolio, for diversification and downside protection,' said added, 'Ultimately, a balanced approach aligned with your risk profile and time horizon works best. Speak with a financial advisor to tailor your SIP strategy accordingly.'advertisementConversely, if you want safety and already have other high-risk investments, gold might work well as a D Naik, 'While equity mutual funds are known to offer a better long-term return potential over the long run, gold helps in hedging against inflation and can potentially outperform all other asset classes during times of global uncertainty.'He added, 'For gold exposure, gold ETFs or gold mutual funds may be a better choice for investment compared to physical gold due to their cost efficiency, convenience and liquidity. A 10-15% exposure to gold is typically considered to be ideal for most investors. Given the current equity valuations and the run-up in gold prices, it may be advisable to take such exposure systematically via SIPs, to reduce the impact of any short-term volatility.'However, the best choice depends on your goals and how much risk you're comfortable with. Bhagat believes a well-balanced plan based on your risk appetite and time frame works best, and a financial advisor can help you build the right Reel
