Latest news with #Section158BC
Mint
04-07-2025
- Business
- Mint
Income Tax Filing: IT Dept launches ‘TAXASSIST' to help with queries and notices
Months ahead of the 15 September 2025 deadline for filing income tax returns for FY 2024–25, the Income Tax Department has launched a support service called 'TAXASSIST' to help taxpayers with queries and notices during the current filing season. As part of this campaign, the Income Tax Department sends messages or emails to taxpayers, reminding them of important notices or other tax-related actions. Describing the latest initiative, the Income Tax Department said: 'Introducing TAXASSIST, your go-to support for all tax concerns! From helping you navigate departmental communications and keeping your finances in check, to reminding you of key tax deadlines. This campaign is designed to guide, support, and simplify.' The post shared an example highlighting three scenarios in which a taxpayer claimed a deduction under Section 80GGC—a provision that allows tax deductions for donations made to political parties or electoral trusts. The Income Tax Department outlined these scenarios to show how TAXASSIST can assist taxpayers in managing and responding to 80GGC-related claims. If a taxpayer mistakenly claims a deduction under Section 80GGC, TAXASSIST will advise them to revise the return or file an updated income tax return (ITR-U), pay the due taxes and interest, or return any excess refund. The department further warned that ignoring such communication could lead to scrutiny or penalties. If a taxpayer fraudulently claims a deduction under Section 80GGC by making fake or non-genuine political donations, the Income Tax Department treats it as tax evasion. In such cases, TAXASSIST will prompt the taxpayer to revise their income tax return or file an updated return (ITR-U), and pay the due taxes and interest to avoid legal action. If a taxpayer has donated to a legally registered political party, TAXASSIST advises them to retain valid donation receipts and proof of bank transactions, as these may be required for verification. This initiative is part of a broader effort by the Income Tax Department to enhance taxpayer convenience. On Friday, the department also activated the online submission process for Form ITR-B for individuals who have received notices under Section 158BC of the Income Tax Act.
Time of India
04-07-2025
- Business
- Time of India
Made a political donation? Income Tax Dept launches Tax Assist to help you respond to an income tax notice
What is Section 80GGC? Academy Empower your mind, elevate your skills How to respond to notices from the Income Tax Department? How to respond if your claim is genuine Can you withdraw the claim of deduction u/s 80GGC? What to do if you have claimed incorrectly or you lack supporting documents? What happens if an income tax notice is ignored Many taxpayers who have claimed deductions under Section 80GGC of the Income Tax Act, 1961, have received income tax notices. The Income Tax Department has enabled a new facility on its portal, allowing taxpayers who have received notices under Section 158BC of the Income Tax Act, 1961 on how to respond to such 80GGC of Income Tax Act, 1961, allows individual taxpayers to claim deductions for contributions made to political parties or electoral trusts. These deductions encourage transparent political contributions and have specific eligibility criteria, documentation requirements, and deduction limits. Understanding the features and procedures of Section 80GGC helps taxpayers maximize benefits while complying with tax due to rising instances of fake claim being made, the income tax department has taken this new initiative to curb the misuse of this you have received an SMS or email regarding your claim under this section, do not ignore it. Taxpayers are advised to review their ITRs carefully, as any incorrect or unsupported claim can lead to scrutiny, investigation, or even penalties. Make sure your claim is backed by proper documentation such as valid donation receipts and payment proofs to avoid potential Income Tax Department has introduced 'TAXASSIST" to support all taxpayers' concerns. The Income Tax Department posted on social media,'DONATIONS UNDER 80GGC?Match Claim with an SMS/E-mail from the Income Tax ignore the communication. It relates to your claimed deduction for political your ITR carefully, incorrect claims can lead to scrutiny or penalties.'The Income Tax Department has asked taxpayers who have received notice under Section 158BC to now submit Form ITR-B via the e-Proceeding tab on the Income Tax to the tax department's social media post, 'Taxpayers who have received notice under Section 158BC can now submit Form ITR-B via the e-Proceeding tab on the Income Tax portal'According to CA Ashish Niraj, Partner at A S N & Company:'If your claim is genuine and you have donated to a registered political party, there is no need to panic. Simply reply to the notice with valid donation receipts and be ready to provide bank statements or transaction details if requested later.'Yes, you can withdraw the claim made under u/s 80GGC. 'However, in the spirit of promoting voluntary compliance it is suggested that if for any reason, you would like to withdraw the claim of deduction u/s 80GGC, you can file an updated return u/s 139(8A) withdrawing the claim and paying taxes as required u/s 139(8A) of the Income-tax Act, 1961. In such a situation, you may provide details of the updated return filed along with the proof of payment of taxes within 7 days of receipt of this letter' explains the deduction was claimed incorrectly or you lack supporting documents, CA Niraj advises:'If you believe you have mistakenly claimed the deduction and you don't have required documents to substantiate your claim then you should file ITR U u/s 139(8A) of Income Tax Act as soon as possible with payment of additional tax soon. However there is a Practical Problem in it. Presently ITR U Filing is available for AY 2023-24 and AY 2024-25 Only. As per Budget 2025 provisions ITR U for AY 2021-22 and AY 2022-23 should have enable but presently it is not available on portal to file. On the Home Page of Income Tax Portal in the Announcement section it mentions that 'Facility for filing updated returns for the AYs 2021-22 and 2022-23 as per Finance Act, 2025 will be provided shortly'.Ignoring an income tax notice may lead to a heavy penalty. If you receive such a notice and choose to ignore it knowingly, despite an incorrect claim, be aware that the tax department may initiate proceedings and impose a penalty of up to 200% of the tax sought to be evaded.
Mint
04-07-2025
- Business
- Mint
Income Tax: Online Form ITR-B released for taxpayers who received notice under 158BC. Check details here
In a significant move aimed at improving taxpayer convenience, the Income Tax Department has enabled the online submission of Form ITR-B for those who have received notices under Section 158BC of the Income Tax Act. This update allows taxpayers to file their return through the e-Proceeding tab on the official income tax portal. Section 158BC applies when undisclosed income is unearthed during search or seizure operations conducted by the Income Tax Department. This section empowers the assessing officer to serve a notice requiring the taxpayer to file a return for a block assessment period, typically spanning six assessment years prior to the search. The return must be filed using Form ITR-B, which is specifically designed for this purpose. Previously, filing Form ITR-B involved a largely manual process, often requiring physical submission and coordination with tax officers. With the launch of this new functionality, taxpayers can now digitally upload Form ITR-B through the e-Proceeding tab after logging in to their accounts on the portal. This step not only enhances convenience but also aligns with the department's larger goal of creating a faceless, transparent, and technology-enabled tax ecosystem. The Central Board of Direct Taxes (CBDT) has urged all taxpayers who have received notices under Section 158BC to utilize the e-filing facility at the earliest. Detailed instructions are available on the portal for smooth and timely compliance. This update is one among several recent initiatives taken by the Income Tax Department to digitize core tax processes and improve the ease of doing business in India. Experts have lauded the move, noting that it will reduce delays, minimize errors, and improve accountability in the post-search assessment workflow. Taxpayers are encouraged to review their notices and proceed with online submission without delay. Visit here for all personal finance stories
