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Indian Express
7 days ago
- Business
- Indian Express
To issue manual for new Income Tax Bill's digital searches, seizures, says CBDT Chief
Even as Parliament's Select Committee on the new Income Tax Bill retained the digital search and seizure provisions without any significant changes in its report this week, the Income Tax Department is in the process of defining tighter procedures to protect the privacy of the taxpayer after concerns were raised by digital rights activists. In an interview with The Indian Express, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal said the Tax Department is going to issue a manual that will outline the procedure for the analysis of digital evidence. 'From a regulatory point of view, statutory permissions are there which mandate the Tax Department to actually not part with the data in an unauthorised manner. It's a legal obligation…we have come out with the search and seizure manual. We are also coming up with the digital manual for analysis of digital evidence. There also we would be actually taking care of it. So, we will address it,' he said. Stating that it is a 'genuine concern' of the taxpayers, Agrawal said there is a mechanism wherein such information would be scrutinised in a sanitised environment by authorised people only. 'We are in the process of defining procedures wherein these things could be made more tight to take care of a taxpayer. It is a genuine concern of the taxpayer,' he said. The tax authorities, however, may face an issue during investigations as digital records would also include personal communications. For this, Agrawal said it would be the responsibility of the Tax Department to analyse just the relevant data and redact the rest. 'How do you investigate? There's a mobile, there is a personal chat also here, there's a financial transaction also. So, say, it's WhatsApp, it's both (personal and financial). You got to maintain the evidentiary value of this mobile also. It cannot be that at that point in time, you say I'll take this but I'll not take the other part. There would be continuity. So, therefore, to maintain the evidentiary value, you have got to capture the data in toto. But then once you have captured the data, it's the responsibility of the Tax Department to ensure that whatever investigation is done, only the relevant data is actually analysed, and the other data is redacted,' he said. Apart from the key concern of an infringement upon the right to privacy, stakeholders, in their suggestions to the Select Committee on the new Income Tax Bill, had flagged the need to define clear guidelines for the use of personal data obtained during searches; removal of the power to cover any person who is present in the premises of the search operation; and introduction of restrictions for protecting privileged communication such as those between husband and wife, with doctors/ lawyers etc. The Income Tax Bill, which was tabled in Lok Sabha in February this year, had defined 'virtual digital space' – in the powers to call for information during surveys, searches and seizures – as 'any digital realm that allows users to interact, communicate and perform activities' through computer technology. It had also allowed tax authorities to break open, or 'override' access controls, such as passwords, set up by users for digital communication on social media platforms, email services, and other communication on encrypted platforms such as WhatsApp. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
The Hindu
18-07-2025
- Business
- The Hindu
Income Tax Department enables online utility for ITR-2 filing
Individuals and Hindu Undivided Families (HUFs) having taxable capital gains income can now start filing Income Tax returns ITR-2 for financial year 2024-25. "Income Tax Return Form of ITR-2 is now enabled for filing through online mode with pre-filled data at the e-filing portal," the I-T Department said in a post on X. Parliamentary panel clears Income Tax Bill 2025 with 285 suggestions, to be tabled in Monsoon Session ITR-2 is filed by individuals and HUFs who have income from capital gains, but do not have earnings from business or profession. Last month, the Tax Department had enabled the online utility for filing ITR-1 and 4, which are simpler forms that cater to small and medium taxpayers. The government has already extended the deadline for filing ITRs for Assessment Year 2025-26 (financial year 2024-25) by individuals and entities who do not have to get their accounts audited to September 15, from July 31.
Mint
14-07-2025
- Business
- Mint
Filing Income Tax Return? Fake exemptions and deductions could get you into trouble, warns I-T dept amid crackdown
Individuals filing their Income Tax Returns (ITR) should now be more aware and careful after the Income Tax Department on Monday, 14 July 2025, conducted a 'large-scale' verification operation cracking down on individuals and entities facilitating fraudulent claims of deductions and exemptions in their filings, according to the official statement. The tax department investigations revealed that the fraudulent filings involved abuse of beneficial provisions, with some even submitting false TDS returns to claim excessive refunds. The authorities also reportedly uncovered 'organised rackets' operated by certain ITR preparers and intermediaries, who have been filing ITR claims with 'fictitious deductions and exemptions. The Income Tax Department leveraged financial data received from third-party sources, ground-level intelligence, and advanced artificial intelligence tools to identify suspicious patterns in the filings. Based on the findings of its preliminary investigation, the tax department then conducted 'search and seizure' operations across the states of Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab, and Madhya Pradesh and found evidence of fraudulent claims used by various groups and entities, according to the official filing. These groups misused the deductions under Sections 10(13A), 80GGC, 80E, 80D, 80EE, 80EEB, 80G, 80GGA, and 80DDB of the Income Tax Act, and these exemptions were claimed 'without' a valid justification. After the large-scale verification operation, the Tax Department found that employees of MNCs, PSUs, government bodies, academic institutions, and entrepreneurs were 'lured' into these fraudulent schemes with the promise of 'inflated refunds' in exchange for commission for the service. 'Despite a fully e-enabled tax administration system, ineffective communication remains a significant hurdle in assisting taxpayers,' said the Tax Department in the official filing. The Department also mentioned that the 'ITR preparers' often create temporary email IDs to file bulk returns, which are then later abandoned, making the official notices sent unread. According to the official filing, the Tax Department is now set to take 'stern action' against continued fraudulent claims, including penalties and prosecution wherever applicable. The ongoing verification programme across 150 locations is expected to provide 'crucial evidence,' including the digital records, which will help the authority crack down on and 'dismantle' the networks behind these fraudulent schemes as per the law. The Income Tax department said further investigations are underway on the matter, while advising people to file the correct particulars of their income and communication coordinates and not be influenced by advice from unauthorised agents or intermediaries promisingunduerefunds. 'Approximately 40,000 taxpayers have updated their returns in the last four months, voluntarily withdrawing false claims amounting to 1,045 crore. However, many remain non-compliant, possibly under the influence of the masterminds behind these evasion rackets,' said the Income Tax Department in the official filing on Monday. Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Readers are advised to consult a qualified tax professional or chartered accountant for guidance specific to their financial situation and tax obligations under the Income Tax Act, 1961.
News18
11-07-2025
- Business
- News18
ITR Filing FY 2024-25: Your HRA Tax Exemption Claim Might Be Rejected Under These Circumstances
If your salary includes an HRA component, you can claim tax exemption under Section 10(13A), but many taxpayers make mistakes that attract tax scrutiny. All you need to know: House Rent Allowance (HRA) is one of the most common tax-saving benefits available to salaried individuals in India. If your salary includes an HRA component, you can claim tax exemption under Section 10(13A) of the Income Tax Act. But, while the rules may seem straightforward, many taxpayers make mistakes that can lead to their HRA claims being rejected by the tax department. Here's what HRA exemption is, and under what circumstances your claim might be questioned or denied. What Is HRA And Who Can Claim It? HRA is a part of your salary provided by your employer to help you meet your house rent expenses. Only salaried individuals with an HRA component in their salary can claim tax exemption under Section 10(13A). If you're self-employed or don't get HRA, you may still claim rent-related tax benefits under Section 80GG, but that follows different rules. To claim HRA exemption, you need to meet these basic conditions: Common Reasons Why Your HRA Claim Might Be Rejected Even if you submit your documents, your claim can still be questioned or rejected under certain circumstances: 1. Fake or Inflated Rent Receipts Some employees submit false rent receipts for houses they don't actually live in or for amounts they didn't actually pay. The income tax department has systems in place to detect such discrepancies. If you're caught, not only will your exemption be denied, but you may also face penalties or scrutiny. 2. Rent Paid to Family Members Without Clear Evidence Paying rent to parents or a spouse is legally allowed, but it raises red flags if not handled transparently. For instance, if a husband pays rent to his wife who has no other source of income, the tax officer may question the authenticity of the transaction. The rent should ideally be transferred via bank, and your spouse should show it as rental income in her ITR. 3. No Rental Agreement or Missing Rent Receipts Even if you're genuinely paying rent, failing to provide proper documentation can lead to your claim being rejected. You should have: 4. Rent Paid in Cash Without Bank Proof If you're paying rent in cash and can't show a clear bank trail, your claim can be doubted. It's better to pay rent via bank transfers, UPI, or cheques for transparency. 5. Landlord's PAN Not Provided for Rent Over Rs 1 Lakh If your annual rent exceeds Rs 1 lakh, you must provide your landlord's PAN to your employer or the tax department. If you fail to do so, your claim may be rejected. 6. Mismatch in Address or Details in ITR Vs Employer Records If the address mentioned in your HRA claim doesn't match the address where you're supposedly living, or if the details in your ITR don't match employer records, your claim may be flagged for scrutiny. Can the Tax Department Question Your HRA Claim Even with Proof? Yes, they can. Even after submitting rent receipts, agreements, and PAN details, your claim can be rejected if there are discrepancies or inconsistencies. Just submitting documents is not enough; they must be genuine and verifiable. During scrutiny, the Assessing Officer can demand further explanation or evidence. According to an Economic Times report, chartered accountant Suresh Surana said: 'Even with proper documentation, disputes may arise if the tax authorities find discrepancies or non-compliance with legal provisions. Even after submitting all necessary proofs and declarations related to House Rent Allowance (HRA) in the Income Tax Return (ITR), the Assessing Officer (AO) may still dispute or reject the claim under certain circumstances. Merely furnishing documentation does not automatically validate the exemption if discrepancies, inconsistencies, or red flags are identified during assessment or scrutiny proceedings." In order to claim HRA tax exemption, employees must provide proofs like rent receipts, a rental agreement, and, in some cases, landlord details (e.g., landlord's PAN if rent exceeds Rs 1 lakh annually) to the employer and the revenue authorities upon requisition or if called for during the assessment proceedings, Surana added. tags : income tax view comments Location : New Delhi, India, India First Published: July 10, 2025, 14:50 IST News business » tax ITR Filing FY 2024-25: Your HRA Tax Exemption Claim Might Be Rejected Under These Circumstances 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.
Roya News
20-05-2025
- Business
- Roya News
85% of tax returns in Jordan audited using AI, says income department chief
The Director-General of Jordan's Income and Sales Tax Department, Hussam Abu Ali, said that the department uses an advanced tax auditing system powered by artificial intelligence, which reviews 85 percent tax returns electronically across companies, businesses, individuals, and employees. Speaking at a media briefing titled 'The National Electronic Invoicing System and Tax Reforms,' Abu Ali highlighted that the department offers 65 electronic services covering all key tax procedures, enabling taxpayers, their representatives, and auditors to complete transactions efficiently. Digital Oversight on Factories Abu Ali said the department has established a digital monitoring program for cigarette manufacturing factories and recently launched the second phase of similar controls on alcoholic beverage factories as part of efforts to combat tax evasion and regulate the market. Program for Compliant Taxpayers He introduced a new program for taxpayers who have consistently complied over the past five years, called the 'Golden List,' which offers expedited and premium tax services to encourage voluntary compliance and transparency. Abu Ali explained that one major reform is shifting from sales tax collection at the point of sale to a supply-based model, aligning Jordan's tax system with global best practices on goods and services. He added that electronic integration between the Tax Department, Social Security Corporation, and Companies Control Department has improved accuracy in employee data management and helped reconcile past tax returns. Raising Tax Awareness Dr. Zaid Al-Nawaiseh, Secretary-General of the Ministry of Government Communications, praised the Tax Department's efforts to raise public awareness and tax culture, which has enhanced the efficiency of tax auditing and collection.
