Latest news with #Surana
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Business Standard
2 days ago
- Business
- Business Standard
ITR declared invalid? CBDT offers relief for those with technical glitches
In a relief to thousands of aggrieved taxpayers, the Central Board of Direct Taxes (CBDT) has extended the deadline for processing income tax returns (ITRs) that were wrongly declared invalid by the Centralised Processing Centre (CPC), Bengaluru. Under the fresh relaxation, electronically filed ITRs up to March 31, 2024, but later marked 'invalid' will now be reprocessed and validated under Section 143(1) by March 31, 2026. This applies to returns filed for Assessment Years up to 2023–24, provided the taxpayer had verified them on time. Tax experts say this correction addresses technical glitches and procedural lapses that unfairly blocked refunds or triggered compliance issues for honest filers. Why were some ITRs marked invalid despite being filed properly? Discrepancies in form selection, verification delays, and system errors are among the top reasons, explains Suresh Surana, chartered accountant. 'A salaried person who filed ITR-1 despite having small capital gains found her return marked invalid. Her refund was delayed, and she lost deductions and faced interest under Section 234A,' he shares. Kinjal Bhuta, chartered accountant, advocate and treasurer at the Bombay Chartered Accountants Society, adds that sometimes returns filed on the due date are verified a day later due to portal lags and are then treated as invalid. 'There have been cases where even OTP-verified returns were later shown as defective. By the time the assessee realised, the deadline to fix it had passed,' she says. What does this CBDT relaxation mean in practice? According to Surana, the relief is critical as it now allows the CPC to reprocess affected returns and issue intimations under Section 143-1. 'It helps taxpayers get their long-pending refunds, plus interest. But those without PAN-Aadhaar linkage may still face blocks,' he cautions. Tarun Garg, Director, Deloitte India, calls the move a 'welcome signal' to taxpayers. 'For many senior citizens or small taxpayers, refunds are part of annual budgeting. With this circular, they might finally receive what's due,' he says. To check eligibility: -Log in to your income tax e-filing portal -Look for 'invalid return' status in your filed ITRs -If eligible, no fresh filing is needed; just wait for CPC updates Fixing the system: An implicit admission? All three experts believe the circular indicates system-level lapses at the CPC. Bhuta says, 'Technical issues are increasingly common. This is a much-needed acknowledgement and should push for better safeguards.' Surana suggests more proactive alerts and redressal options, especially for taxpayers without CAs. Garg adds, 'The system is strong but not flawless. This circular shows CBDT is willing to course-correct when automation misfires.'
India Today
22-07-2025
- Business
- India Today
NOIDA is now tax-free. Check who benefits and how
NOIDA has just earned itself a new label, i.e, 'tax-free'. But what does this really mean for the city, its businesses, and its people? The news has already stirred up interest among builders, shopkeepers, and investors Central Board of Direct Taxes (CBDT) recently notified that the New Okhla Industrial Development Authority (NOIDA) will enjoy tax-free status under Section 10(46A) of the Income-tax Act, beginning from the assessment year 2024–25. CA (Dr) Suresh Surana points out, however, that there's more to this than meets the its press note dated 17 July 2025, the CBDT clarified, 'This notification shall be effective from the assessment year 2024-2025, subject to the condition that the assessee continues to be an authority constituted under the Uttar Pradesh Industrial Area Development Act, 1976 (U.P. Act No.6 of 1976) with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act.' Surana pointed out, 'It is important to note that this exemption is limited solely to income tax and may not extend to other statutory levies.'He further explains that this special relief comes with conditions: 'The so-called 'tax-free' status should not be misconstrued as a blanket exemption from all forms of taxation. It is a specific fiscal relief aimed at supporting NOIDA's public infrastructure and developmental responsibilities by relieving it from the burden of income tax, provided it continues to fulfil the statutory conditions outlined in the notification.'SO, WHAT'S TAX-FREE, AND WHAT'S NOT?In simple terms, only NOIDA's income tax burden is waived. Surana clarifies, 'This exemption is limited solely to income tax and may not extend to other statutory levies.'So, while NOIDA will continue to collect fees and charges, it no longer needs to pay income tax on the money it earns from rents, fees, or grants, as long as it sticks to its main job of urban planning and development for the public BUSINESSES COULD GAINThough the tax break applies directly only to the authority, businesses in NOIDA could feel a welcome ripple effect. With more money left in its kitty, the authority is expected to boost spending on roads, water supply, public transport, industrial zones, and other civic works.'Businesses operating in NOIDA may experience indirect financial benefits,' Surana says. He explains, 'While the exemption itself applies to NOIDA and not directly to private enterprises, it can lead to cost efficiencies and improved infrastructure for businesses functioning within its jurisdiction.'Better roads and quicker approvals mean smoother operations, fewer hold-ups and less red tape. Over time, Surana says, 'This may enhance its capacity to reinvest in civic infrastructure, industrial development, public utilities, and urban planning. Over time, this could translate into better services, quicker project approvals, and improved amenities for commercial establishments operating in the area.'NO EXPIRY DATE, BUT THERE'S A CATCHadvertisementMany wonder how long this tax-free status will last. There is no deadline, but there's a clear condition. The exemption will continue as long as NOIDA sticks to its original role of public development under the Uttar Pradesh Industrial Area Development Act, Surana sums up, 'The tax-free status applies from AY 2024–25 onwards and continues indefinitely, without a preset end date provided NOIDA remains legally constituted under its enabling Act and carries out the specified public-interest functions.'WHY THIS MATTERS FOR NOIDA'S FUTUREAt a time when cities are competing hard to attract businesses and investors, this tax relief could give NOIDA a fresh edge. If managed well, the extra funds could mean smoother roads, quicker building clearances, and better facilities, making life easier for companies and residents the new tag doesn't mean a free pass for everyone, the hope is that NOIDA's 'tax-free' badge, used wisely, will help the city grow faster, smarter, cleaner and more business-friendly in the years ahead.- Ends
Time of India
10-07-2025
- Business
- Time of India
ITR filing: Claiming HRA to reduce tax outgo? Rent receipts alone may not suffice - why your claim can be rejected
House Rent Allowance (HRA) remains a common tax-saving benefit for salaried individuals. But recent scrutiny by tax officers shows that even well-documented claims can be rejected if the underlying transactions appear dubious or fail to show a clear money trail. To claim HRA exemption under Section 10(13A) of the Income Tax Act, salaried individuals must receive an HRA component in their salary and submit relevant documents—such as rent receipts, agreements, and landlord details—to their employer, according to an ET report. While these are not required when filing the Income Tax Return (ITR), authorities can call for them during scrutiny. The exemption is calculated as the minimum of: The actual HRA received, 50% of basic salary plus dearness allowance (DA) for those residing in metros (40% for non-metros), or Rent paid minus 10% of salary (basic + DA) However, experts caution that proper paperwork alone doesn't guarantee approval. The Income Tax Department has flagged several cases where rent was paid to close family members—such as a spouse or parent—raising doubts about the legitimacy of the arrangement. 'In order to claim HRA tax exemption, employees must provide proofs like rent receipts, a rental agreement, and, in some cases, landlord details like PAN if rent exceeds Rs 1 lakh annually,' said Suresh Surana, founder of RSM India, quoted in an ET report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo 'Even with proper documentation, disputes may arise if the tax authorities find discrepancies or non-compliance with legal provisions.' One case cited by Tax2Win involved a salaried employee who submitted rent receipts and an agreement to show rent payments to his wife. The claim was disallowed because the wife had no other income source, and the transaction was deemed non-genuine. In another instance, a taxpayer claimed Rs 2.52 lakh as HRA for rent paid to her mother. The rent was paid in cash and backed by hand-written receipts. But tax officers found that the taxpayer jointly owned a self-occupied flat nearby, claimed housing loan deductions on it, and listed the flat as her address across PAN, bank records, and her ITR. Her mother had not declared rental income and failed to respond to notices. The ITAT eventually ruled that the entire arrangement was a sham and disallowed the claim. Quoting the tribunal's finding, Surana said: 'Rent receipts alone are not sufficient. The taxpayer bears the onus of substantiating the genuineness of the claim through documentation, conduct, and a verifiable financial trail.' Tax experts say rent paid in cash, without matching bank withdrawals, can be a red flag. Discrepancies between rent-related documents and Form 16, Form 26AS, or the Annual Information Statement (AIS) also increase the likelihood of rejection. 'If rent is shown to be paid to a close relative without an actual monetary transfer, it could be disallowed,' Abhishek Soni, co-founder of Tax2Win told ET. 'To avoid rejection, taxpayers should maintain a valid rent agreement, PAN of the landlord, proof of rent payment through banking channels, and address proof of the rental property.' Other red flags include inflated rent amounts, use of generic or duplicate receipts, and inconsistencies in address across documents. Claims made while owning a self-occupied home in the same city can also invite questions, especially without a reasonable explanation for renting. 'The AO is empowered to seek clarifications and reject the exemption if supporting evidence appears unreliable,' Surana added. 'Salaried taxpayers must ensure their claims are backed by credible financial transaction---not just paperwork.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
10-07-2025
- Politics
- The Hindu
Puducherry Chief Minister plays down differences with L-G
Chief Minister N. Rangasamy on Thursday played down reports of differences between him and Lieutenant Governor K. Kailashnathan over the appointment of Director of Health and Family Welfare Services in Puducherry. Interacting with reporters after a meeting with Nirmal Kumar Surana, BJP in-charge for the Union Territory at his residence in Gorimedu, the Chief Minister said differences between the elected government and the titular head were bound to arise considering the administrative apparatus in a Union Territory. 'There have always been differences between the elected government and the Lt. Governor in Puducherry due to the existing administrative system. Differences are there now as they have been earlier. As long as Puducherry remains a Union Territory, such differences are bound to happen. That is why all political parties want Statehood,' he said. Asked about reports of him being disappointed with Mr. Kailashnathan over the appointment of Health Director, the Chief Minister said there were minor issues in the administration and they were being sorted out. 'We all want the NDA to come back to power again in Puducherry after the 2026 Assembly poll. Discussions are on to avoid such differences and a mechanism will be put in place to sort out things in future,' he said. Denying any pressure from the BJP, Mr. Rangasamy said Prime Minister Narendra Modi had always showered him with respect even when he was heading a Congress government in Puducherry. Referring to the period when he was Chief Minister of the Congress government in Puducherry and Mr. Modi was heading the BJP government in Gujarat, Mr. Rangasamy said, 'We have had a good relationship from those times. We have mutual respect for each other.' The number of seats to be contested by BJP and AINRC in the 2026 Assembly poll will be decided at the time of election, the Chief Minister said, adding that people had voted the alliance to perform. 'We will continue to serve the people and return to power in 2026,' he said. Mr. Surana said the meeting was just a routine affair and both the parties would work together to win the 2026 Assembly poll. Minister for Public Works K. Lakshminarayanan, Deputy Speaker P. Rajavelou, AINRC legislators and Independents supporting the AINRC in the Assembly attended the meeting with Mr. Surana. On the part of BJP, Home Minister A. Namassivayam and party president V. P Ramalingam were present.
NDTV
10-07-2025
- Politics
- NDTV
Amid Buzz Over Friction With Lt Governor, Puducherry Chief Minister's Measured Response
Chennai: Amid a deepening standoff between the elected government and the Lieutenant Governor in Puducherry, Chief Minister N Rangasamy on Wednesday sought to play down the crisis after meeting BJP leader Nirmal Kumar Surana, the party's in-charge for the Union Territory. For the third straight day, the chief minister and ministers from his party, the All India NR Congress, continued to stay away from work, protesting Lt Governor K Kailashnathan's alleged unilateral administrative decisions, including reshuffling of Indian Administrative Service (IAS) IAS officers without consultation and the rejection of key government proposals. After the meeting, Mr Rangasamy insisted he was under no pressure from the BJP and that such tussles between the chief minister and the Lt Governor would persist until Puducherry is granted full statehood. "Till Puducherry gets statehood, this issue will crop up," Mr Rangasamy said. "This has been there under every rule and every Governor." BJP's Surana, who flew in to defuse tensions, told NDTV that he invited Mr Rangasamy to visit Delhi for further discussions and resolve issues amicably. "As the chief minister said, there would be little issues but we would discuss and sort them. Our focus now is the 2026 election," Mr Surana said. The chief minister also stressed that he shared a cordial relationship with Prime Minister Narendra Modi and denied the current impasse was due to any internal political pressure. Lt Governor Kailashnathan appeared to shrug off suggestions that the chief minister was boycotting office due to friction with him. "It doesn't appear so to me," he said. The political deadlock sparked renewed calls for statehood, with the NR Congress demanding a special session of the assembly. The party was founded on the promise of securing full statehood for Puducherry, which remains a Union Territory governed under a dual administrative system. Though previous regimes, including during the Congress-UPA era, have also seen tensions between the Lt Governor and the elected government, the current episode underscores the need for clarity and balance in the roles of constitutional authorities in Puducherry's governance. In the past, the Supreme Court underscored that the Lt Governor can't act independently but only on the aid and advice of the council of ministers. The power must lie with the elected government and the Lt Governor can't be an "obstructionist", the Supreme Court has said.
