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News18
17 hours ago
- Business
- News18
Why Students And First-Time Earners Should File ITR Early
Last Updated: When you file ITR, you create documented proof of income. This record often becomes crucial while applying for loans, credit cards or renting property. In India, many students and first-time earners believe filing an Income Tax Return (ITR) is only meant for high-income individuals or business owners. However, even if your annual income is below the taxable limit, filing an ITR can bring long-term financial benefits and should be seen as a good financial habit from the very start of your earning journey. 1. Build a Financial Record When you file an ITR, you create documented proof of income with the Income Tax Department. This record often becomes crucial while applying for loans, credit cards, or renting property. For example, if you plan to buy a car or home in the future, lenders often ask for ITR copies of previous years to assess your repayment capacity. 2. Simplify Visa Processing Many foreign consulates, including those of the USA, UK, Canada, and Australia, require ITR documents as proof of financial stability when you apply for a student or work visa. Having at least a couple of years of ITR filing history strengthens your application. 3. Claim Tax Refunds Even students and beginners may face Tax Deducted at Source (TDS) on stipends, part-time job earnings, or freelance work. Filing an ITR helps claim a refund of any excess tax deducted. For instance, if your stipend is below the taxable limit but TDS has been deducted, you can get the entire amount refunded by filing returns. 4. Carry Forward Losses If you have invested in shares, mutual funds, or crypto and suffered a capital loss, filing ITR allows you to carry forward these losses for up to eight years. These losses can be adjusted against future capital gains, reducing tax liability later. 5. Future Tax Compliance and Discipline Starting early helps students and first-time earners understand the process of filing returns, PAN-Aadhaar linking, and managing digital tax platforms like the income tax portal. This builds confidence and ensures they are well-prepared when their income eventually crosses the taxable limit. 6. Build Better Financial Habits Filing ITR encourages young earners to track income and expenses, invest wisely, and adopt better financial planning. It instils discipline and an understanding of how taxation works in India. Filing ITR is not just a legal formality but an investment in your financial future. For students and first-time earners, it sets the foundation for responsible money management and opens up opportunities that require proof of stable and legal income. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
New Indian Express
13-07-2025
- Business
- New Indian Express
Income tax refunds up manifold in 10 years
India's income tax refund landscape has undergone a dramatic transformation over the past decade. The most remarkable change for individual taxpayers has been the drastic reduction in the time taken to process refunds. The average number of days to issue income tax refunds has plummeted by 81%, from a lengthy 93 days in 2013 to just 17 days in 2024, according to sources. This rapid acceleration in processing is a testament to the government's aggressive push towards digital infrastructure and administrative reforms. Refunds issued to taxpayers have surged by a massive 474% between 2013-14 and 2024-25. This significant increase far outpaces the 274% growth in gross direct tax collections and the 133% expansion of the taxpayer base over the same period, signalling drastic improvements in tax administration and compliance. According to data from the PrCCA, CBDT, refunds issued by the tax department soared from Rs 83,008 crores in 2013-14 (during the UPA government's tenure) to a massive Rs 4,76,743 crores in 2024-25 (under the NDA government). During the same time, gross direct tax collected grew from Rs 7,21,604 crores to Rs 27,02,974 crores. Systemic improvement The significant increase in tax refunds and the decrease in processing time are primarily attributed to a series of technological advancements and systemic improvements within the tax administration. These include: End-to-end online filing: Streamlining the entire tax filing process, making it more accessible and less prone to errors. Faceless assessment: Removing physical interactions, enhancing objectivity, and speeding up evaluations. Pre-filled returns: Simplifying the filing process for taxpayers by populating forms with pre-existing data. Automation in refund processing: Utilizing technology to expedite the verification and disbursal of refunds. Real-time TDS Adjustments: Ensuring accurate and timely reflection of Tax Deducted at Source. Online grievance redress mechanisms: Providing efficient channels for taxpayers to address issues. These measures have collectively led to reduced delays and a significantly improved taxpayer experience, fostering greater trust and voluntary participation in the tax system. Refunds a signal of a matured tax system The proportion of refunds issued relative to gross direct taxes collected has also risen, from 11.5% in FY 2013-14 to 17.6% in FY 2024-25. While not a traditional macroeconomic metric, this growth in refunds as a proportion of gross tax collected is seen as a proxy for the increased formalization and voluntary participation within the tax payment system. As India's taxpayer base expands and mechanisms like advance tax payments and TDS deepen, excess remittances become more common, naturally leading to a higher volume of refunds. The growing volume and share of refunds are therefore not merely statistical trends but a meaningful signal of the systemic maturity of India's tax ecosystem. It demonstrates a tax environment firmly aligned with principles of efficiency, transparency, and taxpayer facilitation, ultimately contributing to a more robust and compliant financial system.
Economic Times
05-07-2025
- Business
- Economic Times
FD rate up to 7.85% for senior citizens investing for three years; Know the list of banks
ET Online Fixed Deposit(FD) rate up to 7.85% for senior citizens investing for three years; Know the list of banks There are still some banks which continue to offer up to 7.85% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for three year tenure and not exceeding Rs 3 crore. Read below to know the list of banks offering FD interest rate up to 7.85%. Bank FD interest rate for senior citizens FD rate up to 7.85% YES Bank is offering 7.85% interest rate on FD of three year tenure. FD rate up to 7.8% SBM Bank India is offering 7.8% interest rate on FD of three year tenure. FD rate up to 7.75% for senior citizens Bandhan Bank is offering 7.75% interest rate on FD for three year tenure for senior showing bank FD rate for three year tenure for senior citizens Bank name Interest rate YES Bank 7.85% SBM Bank 7.8% Bandhan Bank 7.75% RBL Bank 7.6% IndusInd Bank 7.5% Source: as of July 2, 2025 FD rate up to 7.6% for senior citizens RBL Bank is offering 7.6% interest rate on FD for three year tenure. FD rate up to 7.5% IndusInd Bank is offering up to 7.5% interest rate on FD for three year tenure. When is TDS deducted from bank FDs? Tax Deducted at Source (TDS) is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax a senior citizen can submit Form 15H to prevent TDS deduction if his total income after all deductions claim and Section 87A rebate is below the taxable limit like Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax regime. Despite the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations. Form 15H applies based on the final tax liability after considering exemptions and rebates. New tax regime: Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26. Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26. Old tax regime: In the old tax regime, the exemption limit is Rs 3 lakh (enhanced to Rs 5 lakh for taxpayers aged 80 years or more), and the 87A rebate applies for income up to Rs 5 lakh, allowing Form 15H submission for FY 2025-26, if the total taxable income does not exceed this threshold. N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. 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Mint
30-06-2025
- Business
- Mint
India's GST collections hit all-time high of ₹22.08 lakh crore in 2024-25, a 9.4% growth YoY — Details here
India's gross collection of goods and services tax (GST) hit an all-time high of ₹ 22.08 lakh crore in the financial year 2024-25, marking a 9.4 per cent year-on-year (YoY) growth compared to the previous financial year, according to an official statement on Monday, 30 June 2025. 'In 2024–25, GST recorded its highest-ever gross collection of ₹ 22.08 lakh crore, reflecting a year-on-year growth of 9.4 per cent. The average monthly collection stood at ₹ 1.84 lakh crore,' said the government in a press note. The data also showed that gross collections doubled in the last five years, compared to ₹ 11.37 lakh crore in the 2020-21 fiscal year. The monthly average collection of GST was ₹ 95,000 crore during that time. As of 30 April 2025, there are more than 1.51 crore active GST registrations in India, with over 1.32 crore as normal taxpayers, 14.86 lakh composition taxpayers, and 3.71 lakh as Tax Deducted at Source (TDS) among other taxable portions. 'In 2020–21, the total collection was ₹ 11.37 lakh crore, with a monthly average of ₹ 95,000 crore. The following year, it rose to ₹ 14.83 lakh crore, and then to ₹ 18.08 lakh crore in 2022–23. In 2023–24, GST collections reached ₹ 20.18 lakh crore, showing consistent growth in compliance and economic activity,' said the government in the release. On 1 July 2025, India will mark the completion of eight years since the implementation of the GST. The gross GST collections for May 2025 witnessed a 16.4 per cent rise to over ₹ 2.01 lakh crore, reported news agency PTI, citing government data on 1 June 2025. In May 2025, gross revenues from domestic transactions increased 13.7 per cent to ₹ 1.50 lakh crore, while GST revenues from imports rose 25.2 per cent to ₹ 51,266 crore. According to the agency report, the gross central GST revenues stood at ₹ 35,434 crore, while the State GST revenues were ₹ 43,902 crore. The Integrated GST for May 2025 was ₹ 1.09 lakh crore.
Coin Geek
24-06-2025
- Business
- Coin Geek
India cracks down on ‘crypto' tax evaders, seizes $327K
Getting your Trinity Audio player ready... Profits earned through digital asset trading are now firmly on the radar of Indian tax authorities. With enhanced data-sharing mechanisms in place between digital asset exchanges and the government, tax officials are actively monitoring and cross-referencing digital asset transactions in real-time. India's Income Tax Department has reportedly contacted thousands of individuals who engaged in digital asset-related activities but failed to include this income in their tax filings for the financial years 2022–23 and 2023–24. These individuals have been sent official notices urging them to update their Income Tax Returns (ITRs) and rectify any omissions or inaccuracies. Authorities, including the Central Board of Direct Taxes (CBDT), are reportedly concerned about potential tax evasion and illicit financial flows. They have flagged a segment of 'high-risk' investors suspected of channeling undisclosed income into virtual digital assets (VDAs). The crackdown stems from discrepancies found between information reported by taxpayers and the data obtained from digital asset platforms and Tax Deducted at Source (TDS) returns. In several cases, the reported figures did not align with actual transaction volumes and values, raising red flags over underreporting or non-disclosure of income generated from digital asset trading. Taxpayers receiving these communications have been encouraged to make amends through the updated return filing mechanism, which allows individuals to correct previously filed returns within a stipulated time frame. 'We are witnessing the early stages of a sweeping regulatory architecture marked by uncompromising know-your-customer/anti-money laundering stringency, forensic blockchain intelligence integration, and the institutionalisation of ex-ante disclosure obligations,' Raj Kapoor, founder and CEO of India Blockchain Alliance, told CoinGeek. 'I would not call this an indictment of crypto as an asset class, but rather an imperative to subject it to the rigours of regulatory orthodoxy. I see now, the future of crypto in India not merely regulated but irrevocably redefined,' Kapoor added. India imposes one of the harshest taxation on digital asset trading—30% flat tax on all digital currency income with no provision to offset losses and a 1% tax deducted at source (TDS) on all transactions above Rs 10,000 ($116). This may likely lead to a loss of about $1.2 trillion in trade volume on domestic exchanges, according to a study from Esya Centre, an Indian policy think tank. Seychelles-headquartered OKX exchange shut down its India operations in 2024, citing regulatory hurdles. Domestic exchanges, however, have been increasingly complying with new regulatory demands. At the same time, exchanges have been requesting the government to establish a level playing field for virtual digital assets (VDAs). The requests include reducing TDS from 1% to 0.01%, allowing offsetting and carrying forward losses, and treating income from digital assets at par with other capital assets. But the requests have so far fallen on deaf ears. While the local economy is looking to regulate the digital assets space, Finance Minister Nirmala Sitharaman said in March 2024 that 'cryptocurrencies' cannot be a legal currency in India. 'Many Indian users, often unknowingly, engage with non-compliant or offshore crypto platforms…Regardless of how you interact with crypto—whether through global exchanges, P2P wallets, or airdrops, it is mandatory to report all VDA income,' Sumit Gupta, co-founder of CoinDCX, India's first digital currency unicorn, wrote in a LinkedIn post. 'Crypto is here to stay, but so are the rules…Paying your taxes is not optional. It is essential for building a sustainable and legitimate crypto ecosystem in India…Stay informed. Stay compliant. Let's make crypto a responsible asset class together,' Gupta wrote. In July 2024, CoinDCX listed the BSV token for trading on its platform, allowing users to have more ways to buy, sell, and trade BSV. With CoinDCX's roughly 15 million registered users, the listing marks a significant expansion into the Indian market for BSV and demonstrates its potential and possibility in the region. CBI busts cyber fraud, seizes 'crypto' In other news, the Central Bureau of Investigation (CBI) has dismantled a cross-border cyber fraud ring, arresting an Indian resident and confiscating 'cryptocurrency' valued at more than $327,000. The operation, which targeted individuals in the United States and Canada, marks a significant step in the agency's crackdown on digital crime with international reach. 'Acting on actionable intelligence developed during the investigation, CBI conducted these searches and uncovered incriminating evidence busting the operation of a group engaged in transnational cyber fraud,' the CBI said in a statement. 'The seized materials include tools for making international calls with masked caller identity, a lead-generation mechanism based on social engineering tactics, voice recordings, and other components of the cybercrime ecosystem,' it added. The suspect, Rahul Arora, was taken into custody during a series of coordinated raids at three separate locations across India. During the investigation, authorities discovered advanced software and equipment allegedly used to pose as government officials and technical support personnel—tactics employed to deceive foreign nationals and extract money under false pretenses. The CBI said that it has developed in-house capabilities for handling and seizure of VDAs as part of its technology-driven approach to combating cybercrime. The agency said it has also put in place necessary systems for the management of such assets as per legal provisions. As a result, the CBI said it successfully detected and seized VDAs in its various search operations. Arora's arrest highlights the growing sophistication and global scope of the CBI's cybercrime investigations. It also reflects the agency's increasing focus on crimes involving digital assets, bolstered by experience gained from major cases such as the high-profile GainBitcoin Ponzi scheme. In February, the CBI executed widespread raids at 60 locations in connection with the GainBitcoin investigation, a scam involving over $800 million. That operation resulted in the seizure of cryptocurrencies worth approximately $2.9 million, further underscoring the scale of financial crimes being committed through digital platforms. 'The message for the Indian crypto ecosystem is clear: the era of regulatory leniency is over, and this isn't necessarily bad. In fact, clarity, even if stringent, is better than confusion. It allows serious players to innovate, investors to enter with confidence, and the state to build a compliant digital finance architecture,' Kapoor of India Blockchain Alliance told CoinGeek. 'Failure to proactively adopt industry standards or engage constructively with regulators may result in more exchange exits from India, more pertinently a chilling effect on Web3 startups, who may then look to domicile overseas,' Kapoor added. Watch: India is going to be the frontrunner in digitalization title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
