Latest news with #26AS
Mint
16 hours ago
- Business
- Mint
Income tax calculator: This is how you can use it to compute your tax liability
As a taxpayer, it is recommended to use an income tax (I-T) calculator to ascertain your tax liability. However, before you use income tax calculator, these are the key steps that you need to follow: At the outset, you need to enter the PAN and your name. Then you enter the assessment year and the taxpayer category i.e., whether you are an individual, HUF or a firm. Then you must enter the residential status: resident or non-resident. Now the system will ask you to enter the total taxable income as per the new tax regime. Then there is space for allowances/ exemptions that are allowed only under the old tax regime such as 10(5), 10(13A) etc. Then you need to enter the VIA deductions allowed under the old tax regime such as 80D, 80C, 32(1) and others. Finally, you will arrive at total taxable income as per the old tax regime. This is also quite similar to a basic calculator. As mentioned above, you have to enter the PAN, name of the taxpayer, updated return under 139(8A), other than updated return. This is followed by the basic details such as choosing the tax regime, residential status, age, and date of submission. Now you need to enter your income under different heads such as under the head salaries, house property, capital gains, business or profession, and other sources. Salaried taxpayers need these documents at the time of filing of income tax return: form 16, form 26AS and AIS (annual information statement). Form 16 is a TDS certificate issued by an employer to an employee. Form 26AS is a consolidated Annual Information Statement for a particular Financial Year and AIS is a comprehensive view of information for a taxpayer displayed in Form 26AS. Visit here for all personal finance updates
India Today
7 days ago
- Business
- India Today
7 common mistakes you must avoid while filing ITR in 2025
7 Common Mistakes You Must Avoid While Filing ITR In 2025 2 Jun, 2025 Credit: Getty The ITR deadline is now September 15, 2025. Missing this deadline can lead to a late fee of up to Rs 5,000, depending on how late you file. Missing The ITR Deadline Ensure your bank account is pre-validated, or your refund could be held up and lead to complications. Not Pre-validating Your Bank Account Filing the wrong ITR form may delay processing or lead to rejection of your income tax return. Choosing The Wrong ITR Form Report all income—FD interest, rent, dividends, capital gains—to avoid tax notices or penalties later. Forgetting To Report All Income Always match your ITR with Form 26AS and AIS before filing to avoid mismatches and refund delays. Not Checking Form 26AS & AIS Filing fake rent receipts for HRA or false deduction claims may lead to penalties and legal action. Claiming Fake Deductions Filing your ITR is not the final step, you must also verify it. If not verified, your return will be treated as invalid. Skipping ITR Verification
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Business Standard
24-04-2025
- Business
- Business Standard
Watches, art, bags, sportswear over Rs 10 lakh? Say hello to 1% TCS
Luxury shoppers, take note: If you're eyeing that limited-edition wristwatch, high-end handbag, or luxury yacht, be prepared to pay a little extra—not as a cost, but as a tax trail. Starting April 22, 2025, the Income Tax Department will levy a 1% Tax Collected at Source (TCS) on high-value luxury goods priced above Rs 10 lakh. "The much-anticipated notification on TCS on luxury goods brings clarity on scope and thresholds. Effective April 22, 2025, the levy applies to notified products exceeding ₹10 lakh in value with tax applicable on the full transaction amount in excess of Rs 10 lakh.. This move is a strategic step towards enhancing tax transparency and tracking high-value consumption trends, a move that aligns with global trends in tax surveillance and tax transparency," said Munjal Almoula, Head of Tax, BDO India. This move is part of the government's larger effort to trace big-ticket spending, widen the tax base, and bring greater transparency to luxury purchases. According to the notification issued on April 22, 2025, the following luxury items will now attract 1% TCS if they are sold for ₹10 lakh or more: Luxury handbags Wrist watches Footwear and high-end sportswear Designer sunglasses Art pieces (paintings, sculptures, antiques) Collectibles (coins, stamps) Yachts, helicopters Race or polo horses Home theatre systems Already, motor vehicles priced above Rs 10 lakh have been under the TCS net since the beginning of 2025. How Does TCS Work? Collected by the seller at the time of purchase Charged at 1% of the sale price (on items above Rs 10 lakh) Adjusted against your total income tax at the time of filing returns Requires PAN submission at the time of transaction Example: Buying a luxury handbag worth Rs 12 lakh? The seller will collect Rs 12,000 (1%) as TCS, which will be credited against your total tax liability when you file your income tax return. Why this matters While TCS doesn't increase your tax burden, it helps the government keep track of high-value discretionary purchases. The goal is to create a digital footprint of expensive buys and encourage people to declare their real financial status. "The notification operationalises the government's intent to monitor high-value discretionary spending and improve audit trails in the luxury sector,' said Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP. What This Means for Buyers Be ready for more KYC requirements at luxury outlets Ensure your PAN details are updated TCS will be visible in your Form 26AS (tax credit statement) Keep purchase receipts for tax filing reference This rule doesn't change your actual tax liability—it just brings luxury purchases under the tax department's radar. It's part of the government's effort to formalise the economy and ensure financial transparency, especially in sectors where cash transactions and unreported income have been common.
