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Mint
41 minutes ago
- Politics
- Mint
Income tax employees call for boycott of Income Tax Day celebrations
New Delhi [India], July 23 (ANI): Income tax employees across the country will boycott the official Income Tax Day celebrations on July 24, as part of an escalating protest against what they term the "persistent apathy" of the Central Board of Direct Taxes (CBDT) toward their pressing concerns. The Joint Council of Action (JCA), representing the Income Tax Employees Federation (ITEF) and Income Tax Gazetted Officers Association (ITGOA), announced a series of agitation programs that will intensify over the coming weeks, potentially disrupting tax administration operations nationwide. The protest will begin with demonstrations on July 23 at all Principal Chief Commissioner/Chief Commissioner/Principal Commissioner stations across 18 regions. "The chronic indifference of the administration towards our pressing issues has compelled us to initiate this protest," stated the JCA in a letter to CBDT Chairman dated July 21, July 29, JAF has planned for half-day dharnas and demonstrations at all major tax offices and suspension of all reports except those for Parliamentary questions and court orders. There will also boycott of outreach programs and non-participation in official meetings, both physical and virtual and black flag demonstrations if CBDT members visit field to the JCA from 5 to 7 August, there will be extended daily dharnas and a complete halt to search and survey operations, including TDS surveys and a full-day walkout on August 8. The JCA highlighted multiple unresolved issues affecting 97% of the department's workforce. The recent Annual General Transfer (AGT) orders issued on July 16 have "aggravated prevailing discontent" by ignoring deserving cases involving genuine compassionate grounds. The long-standing practice of transferring officers back to home regions after cooling-off periods has been "abruptly discontinued."Delays in the overdue Cadre Review and Restructuring exercise continue to cause "acute stagnation" across Group C and B cadres. A committee report on career progression for non-IRS cadres reportedly ignored JCA promotion and regularisation issues remain unresolved, including regularisation of Assistant Commissioners (2024 batch) pending with UPSC for over six months, Ad-hoc promotions in Madhya Pradesh and Chhattisgarh regions, All-India Income Tax Officer seniority list preparation delays and non-financial upgradation issues for 2008-2011 batches. Employees have also raised concerns about "frequent and duplicative requests for data and reports" with "artificial deadlines" that disregard statutory time limits. The reorganisation of Junior Assessment Officer charges, created during the faceless assessment scheme implementation, remains pending despite repeated requests. Despite ambitious plans for digital platform upgrades including Taxnet 2.0, ITBA 2.0, and other systems, the JCA criticised the lack of matching hardware and software support. "Over a thousand newly promoted Income Tax Officers are being forced to work without departmental laptops," the letter stated. The protest comes despite the recent reappointment of the current CBDT Chairman, which had "created a lot of expectation among the fraternity." However, the JCA expressed that "our anticipations were belied" by the recent transfer orders and continued delays in resolving long-pending issues. (ANI)
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Business Standard
a day ago
- Business
- Business Standard
Got a tax notice for submitting less TDS? CBDT relief may offer respite
The Central Board of Direct Taxes (CBDT) has provided some relief to taxpayers and businesses who have been served tax demand notices for deducting tax at source (TDS) or collecting tax at source (TCS) at normal rates from payees whose Permanent Account Numbers (PANs) had become inoperative for want of Aadhaar linkage. Under the Income-Tax Act, inoperative PANs attract higher TDS/TCS rates of 20 per cent. CBDT has spared deductors and collectors from paying the differential tax and penalties, provided certain conditions are met. What triggered this relief? Several deductors had raised concerns about notices from the tax department demanding additional tax where they applied normal TDS/TCS rates, unaware that the payee's PAN was inactive. 'The CBDT's circular provides significant relief to taxpayers who were saddled with tax demands arising from short deduction or collection on account of a payee's PAN being inoperative due to non-linkage with Aadhaar,' says Ashish Mehta, partner at Khaitan & Co. Who benefits and how? Relief applies in cases where: -Transactions occurred between April 1, 2024 and July 31, 2025, and -The payee's PAN is made operative by September 30, 2025. In such cases, demand notices for short deduction will be quashed after rectification of returns or reprocessing. Example: Consider A buying property worth Rs 1 crore from B in May 2024 and deducting TDS at 1 per cent (Rs 100,000). If B's PAN was inoperative, A was liable to deduct TDS at 20 per cent (Rs 20,00,000), resulting in a tax demand of Rs 19 lakh. 'According to the new circular, A will no longer be required to pay this demand if B's PAN becomes operative by September 30, 2025,' explains Mehta. No penalty or interest if PAN is updated 'If the payee links PAN with Aadhaar within the prescribed timelines, the deductor need not pay any interest or penalty for short deduction,' adds Mehta. What should taxpayers do now? -Verify PAN-Aadhaar linkage of employees, tenants, or sellers before making payments. -Advise payees to complete linkage promptly to avoid higher TDS/TCS rates. -Monitor compliance timelines to ensure eligibility for relief. 'This proactive step is critical for employers, landlords, property buyers, and small businesses to stay out of trouble,' says Mehta.
NDTV
a day ago
- Business
- NDTV
ITR Filing 2025: Final ITR Date And What Salaried Taxpayers Need To Know
Salaried individuals across India have been granted additional time to file their Income Tax Returns (ITR) for the Financial Year 2024-25 (Assessment Year 2025-26). The Central Board of Direct Taxes (CBDT) has officially extended the ITR filing deadline for non-audit cases, including salaried taxpayers, from the usual July 31, 2025, to September 15, 2025, as per its recent circular. This extension comes amid reported delays in the availability of updated ITR forms and e-filing utilities on the Income Tax Department's portal. Additionally, many taxpayers faced issues with the late reflection of TDS data in Form 26AS and AIS, prompting calls for more time to ensure accurate filing. However, experts warn that while the return filing deadline is extended, the payment of any self-assessment tax due must still be completed by July 31, or else penal interest under Section 234A may apply. Notably, the extension also impacts refund interest positively. As per Section 244A, taxpayers who are due refunds may receive up to 33% higher interest, as the interest accrues from April 1, regardless of the extended deadline. However, this interest is taxable and must be reported in the ITR. Late filing beyond September 15 will attract a penalty of Rs 5,000 (if income exceeds Rs 5 lakh) and Rs 1,000 for lower incomes under Section 234F. Belated or revised returns can still be filed until December 31, 2025, while updated returns (ITR-U) can be submitted up to March 31, 2030. Taxpayers are encouraged to file early to avoid last-minute technical issues on the e-filing portal.
Time of India
a day ago
- Politics
- Time of India
Bizarre I-T law to penalise taxpayer to change soon: Income Tax Bill 2025 may give relief to specified small taxpayers filing ITR only to claim tax refunds
What did the select committee of Lok Sabha recommend? Academy Empower your mind, elevate your skills The Committee observed that the current mandatory requirement to file a return solely for the purpose of claiming a refund could inadvertently lead to prosecution, particularly for small taxpayers whose income falls below the taxable threshold but from whom tax has been deducted at source. In such scenarios, the law should not compel a return merely to avoid penal provisions for non-filing. The Committee, therefore, recommended to remove sub-clause (1)(ix) from Clause 263 to provide flexibility for allowing refund claims in cases where the return is not filed in due time. What does this mean for taxpayers? Clause 263(1)(ix) of the Income-tax Bill, 2025 can be read to mean that every person in whose case TDS is deducted should mandatorily file his/ her income tax return (ITR). Non filing of income tax return (ITR) may result in penalty under clause 479, and imprisonment for a minimum period of three months. Though sub-clause (2) of clause 479 indicates that prosecution cannot be initiated unless an assessment order is passed resulting in a tax demand of Rs 10,000 or more, out of abundant precaution, it appears that the Select Committee has recommended omission of Clause 263(1)(ix) of the 2025 Bill. What does Clause 479 of the Income Tax Bill, 2025 say about penal provisions for failure to file an ITR? (a) in a case, where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds twenty- five lakh rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and shall also be liable to fine; (b) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to two years and shall also be liable to fine. Sub-clause 2 of clause 479 reads as follows: What is the existing rule for tax refunds and ITR filing as per Income Tax Act, 1961? How would you feel if you file ITR late for claiming legitimate tax refund but you get penalized for it especially when as per I-T law does not require you to even file ITR. Isn't this bizarre? However, it is going to change of the important recommendations by the select committee of the Lok Sabha on the Income-Tax Bill, 2025 is about tax refunds and ITR filing. The committee said that if any specified small taxpayers wants to file an Income Tax Return (ITR) solely for the purpose of claiming tax refund then he/she can do so even after the original deadline to file an ITR is over, without the fear of penalties. This means if you are a small taxpayer who wants to claim tax refund but fail to file an ITR on or before July 31, 2025 then it's not a problem anymore. You can still file your ITR on or before December 31, 2025 without attracting any penal below to know who is eligible for this relaxation and what the select committee to the press release dated July 21, 2025, here's what the select committee said:S. Sriram, Executive Partner, Lakshmikumaran and Sridharan Attorneys explainsAs can be seen from above, the select committee of the Lok Sabha has specified that this relief is only for small taxpayers whose income level falls below the taxable threshold. S. Sriram says that the phrase 'income below the taxable threshold' means the basic exemption limit which is Rs 2.5 lakh for old tax regime and Rs 4 lakh under new tax regime for FY 2025-26 (AY 2026-27).S. Sriram says: 'The maximum amount, which is not chargeable to tax, would mean the minimum amount referred to the slab rate, without having regard to rebates, deductions, allowances, etc.'Sub clause 1 of Clause 479 reads as follows:(1) If a person wilfully fails to furnish in due time the return of income, which is required to be furnished under section 263(1), or by notice given under sections 268(1) or 280, he shall be punishable,—(2) A person shall not be proceeded against under sub-section (1) for failure to furnish in due time the return of income under section 263(1) for any tax year, if(a) the return is furnished by him before the expiry of one year from the end of the tax year or a return is furnished by him under section 263(6) within the time provided in that section; or(b) the tax payable by such person, not being a company, on the total income determined on regular assessment, as reduced by the advance tax or self-assessment tax, if any, paid before the expiry of one year from the end of the tax year, and any tax deducted or collected at source, does not exceed ten thousand rupees.S. Sriram explains that as per the Income Tax Act, 1961 individual taxpayers are not required to file their income-tax return (ITR), if their total income is less than the maximum amount not liable to tax. 'Even if TDS is deducted on their income (say by a bank on their interest income, or by a company on their dividend income), the individual is not required to file ITR. The only consequence in such cases of non-filing of tax return is that the taxpayer would have to forgo refund of TDS.'
New Indian Express
a day ago
- Business
- New Indian Express
Select Committee recommends dropping mandatory ITR filing for claiming refunds
According to the Select Committee report, stakeholders who advocated for the omission of this sub-clause argued that Clause (ix), as initially proposed, had the effect of denying a refund to a person if the Return of Income was delayed beyond the specified due date. However, tax experts have contended that the legislature's intent is not to deny a refund to an assessee solely because the income return has been filed after the due date. They argue that the presence of clause (ix) in section 263(1)(a) leads to an unintended interpretation that an assessee must file the Return of Income within the due date to claim a refund. "The clause (ix) does not serve any purpose since it is certainly permissible for a person to furnish a belated return. Accordingly, the omission of the same would avoid unnecessary confusion and unintended hardship to the assessee,' they explain. Who are exempted from filing I-T returns? Individuals earning below the taxable income threshold are exempt from paying income tax. This limit stands at ₹2.5 lakhs annually under the old tax regime and ₹3 lakh under the new tax regime. Additionally, those whose only income source is agriculture or farming are typically exempt from filing income returns, though a threshold for agricultural income may necessitate filing. Certain Non-Resident Indians (NRIs) are also exempt if their income exclusively comes from dividends or interest, or if it's already subject to TDS. Lastly, senior citizens over 75 years of age, whose income consists solely of pension and interest, can also be exempt from filing their ITR.
