Latest news with #SonuJain
Mint
5 days ago
- Business
- Mint
Income Tax FY 2024-25: How senior citizens can save more under these key provisions
As income tax return filing for Financial Year (FY) 2024-25 gains traction, taxpayers across the nation, especially senior citizens, are looking for ways to reduce and bring down their overall tax liability. Two key provisions of the Income Tax Act i.e., Section 80TTA and Section 80TTB provide deductions on the interest income for those selecting the old tax regime. Section 80TTA permits individuals below 60 years of age and Hindu Undivided Families (HUFs) to claim a deduction of up to ₹ 10,000 on interest earned from savings accounts held in banking institutions, post offices or cooperative societies. This particular benefit applies only if the taxpayer files under the old tax regime. Furthermore, this deduction does not apply to fixed or recurring deposits. Senior citizens who are aged 60 and above can claim deductions of up to ₹ 50,000 under Section 80TTB. These deductions are permitted on interest earned from savings, fixed deposits, recurring deposits with banking institutions, post offices or cooperative banks. Explaining the same point further, CA Sonu Jain, Chief Risk and Compliance Officer, 9Point Capital said, 'Senior citizens can save more tax under the old regime using Section 80TTB, which allows a deduction of up to ₹ 50,000 on interest from both savings accounts and fixed deposits. In contrast, those below the age of 60 get ₹ 10,000 under Section 80TTA,' He further added that, 'Senior citizens should also be cautious of the fact that this benefit isn't available if the new regime is opted for when filing the ITR.' It is critical to keep in mind that under the new tax regime applicable in FY 2024-25 and beyond, deductions under Section 80TTA and 80TTB are not permitted. That is why keeping the same thing in mind, taxpayers should carefully evaluate whether to opt for the lower slab rates under the new regime or simply stick with the old regime to claim the benefit of these exemptions. In the case of taxpayers with high interest income, especially senior citizens, remaining in the old regime may provide greater benefits in FY 2024-25. Keeping the same points in mind, the tax saving potential of Section 80TTB makes it a crucial component of financial planning especially for retired government employees. Further, those relying heavily on interest income for meeting their monthly expenses should check and analyse the long term tax implications before switching regimes as the old regime permits more flexibility through numerous deductions. Disclaimer: This article is for informational purposes only and should not be considered financial or tax advice. Readers are advised to consult a qualified tax professional before making any decisions related to investments and income tax planning.
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Business Standard
6 days ago
- Business
- Business Standard
Delay in ITR-5, 6, 7 utilities:Brace for shorter filing window, say experts
Taxpayers looking to file ITR-5, 6 and 7 are waiting for their forms to go live on the Income Tax portal. Tax experts say the hold-up has left professionals with a shrinking window to complete complex filings, raising the chances of last-minute errors. 'These forms require complex disclosures, audits and reconciliations. The phased rollout of ITR utilities this year has disrupted workflows even in the most efficient tax practices,' said Sonu Jain, chief risk and compliance officer at 9Point Capital. ITR-2 and 3 utilities were also released late in mid-July. 'Normally, filings for multiple clients are spread over 3-4 months. This delay has created a backlog, increasing the chances of last-minute rush, errors and delayed refunds. Taxpayers are also grappling with discrepancies between AIS data and their own records, making the process slower and more stressful,' said Deepesh Chheda, partner at Dhruva Advisors. What taxpayers should do now Experts stress that taxpayers should use this time wisely. 'Finalise your financial statements, reconcile data with Form 26AS and AIS, and prepare drafts of your returns based on last year's schema,' advised Kinjal Bhuta, CA and treasurer of the Bombay Chartered Accountants' Society. She warned that waiting for the utilities to go live could leave too little time for quality checks. Deepak Kumar Jain, chief executive officer of recommended that taxpayers, required to undergo audits, complete them early and coordinate closely with tax professionals. 'Preparedness always pays dividends. Do not rely on the hope of an extension,' he cautioned. Will the deadline be extended? While the government had extended deadlines for non-audit cases earlier, no fresh announcements have been made for ITR-5, 6 or 7 filings. 'Future extensions cannot be predicted. For corporates and trusts, due dates are linked to other compliance deadlines under the Companies Act and GST, so any miscalculation can lead to a domino effect of non-compliance,' said Jain of 9Point Capital. Penalties for missing the deadline Failing to file on time can prove costly. Taxpayers with income above Rs 5 lakh may face a penalty of Rs 5,000 under Section 234F, while those below the threshold are charged Rs 1,000. Interest at 1 per cent per month applies on unpaid taxes. 'Belated filers also lose the ability to carry forward business or capital losses and may face delayed refunds,' Chheda noted. Bhuta pointed out an additional risk. 'Multiple deadlines coinciding could overwhelm the Income Tax portal, adding to taxpayers' woes.' With little clarity on further extensions, taxpayers filing ITR-5, 6, or 7 should proactively prepare to avoid last-minute bottlenecks and penalties. Staying in contact with tax advisors will be critical in navigating the compressed timeline.
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Business Standard
6 days ago
- Business
- Business Standard
After buying a second-hand car, this is how you transfer insurance policy
Taxpayers looking to file ITR-5, 6 and 7 are waiting for their forms to go live on the Income Tax portal. Tax experts say the hold-up has left professionals with a shrinking window to complete complex filings, raising the chances of last-minute errors. 'These forms require complex disclosures, audits and reconciliations. The phased rollout of ITR utilities this year has disrupted workflows even in the most efficient tax practices,' said Sonu Jain, chief risk and compliance officer at 9Point Capital. ITR-2 and 3 utilities were also released late in mid-July. 'Normally, filings for multiple clients are spread over 3-4 months. This delay has created a backlog, increasing the chances of last-minute rush, errors and delayed refunds. Taxpayers are also grappling with discrepancies between AIS data and their own records, making the process slower and more stressful,' said Deepesh Chheda, partner at Dhruva Advisors. What taxpayers should do now Experts stress that taxpayers should use this time wisely. 'Finalise your financial statements, reconcile data with Form 26AS and AIS, and prepare drafts of your returns based on last year's schema,' advised Kinjal Bhuta, CA and treasurer of the Bombay Chartered Accountants' Society. She warned that waiting for the utilities to go live could leave too little time for quality checks. Deepak Kumar Jain, chief executive officer of recommended that taxpayers, required to undergo audits, complete them early and coordinate closely with tax professionals. 'Preparedness always pays dividends. Do not rely on the hope of an extension,' he cautioned. Will the deadline be extended? While the government had extended deadlines for non-audit cases earlier, no fresh announcements have been made for ITR-5, 6 or 7 filings. 'Future extensions cannot be predicted. For corporates and trusts, due dates are linked to other compliance deadlines under the Companies Act and GST, so any miscalculation can lead to a domino effect of non-compliance,' said Jain of 9Point Capital. Penalties for missing the deadline Failing to file on time can prove costly. Taxpayers with income above Rs 5 lakh may face a penalty of Rs 5,000 under Section 234F, while those below the threshold are charged Rs 1,000. Interest at 1 per cent per month applies on unpaid taxes. 'Belated filers also lose the ability to carry forward business or capital losses and may face delayed refunds,' Chheda noted. Bhuta pointed out an additional risk. 'Multiple deadlines coinciding could overwhelm the Income Tax portal, adding to taxpayers' woes.' Key takeaway With little clarity on further extensions, taxpayers filing ITR-5, 6, or 7 should proactively prepare to avoid last-minute bottlenecks and penalties. Staying in contact with tax advisors will be critical in navigating the compressed timeline.
