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Time of India
8 hours ago
- Business
- Time of India
ITR filing FY 2024-25: Do you need to file your income tax return if TDS has been deducted? Explained
Tax Deducted at Source or TDS is the tax that is deducted before making a payment to the recipient. (AI image) ITR filing FY 2024-25: It's that time of the year when every taxpayer gets together documents to file their income tax return. This year the last date of file the income tax return has been extended from July 31 to September 15, 2025. One common query in the minds of taxpayers is - if TDS or Tax Deducted At Source has been cut, is there a need to file the income tax return? The clear answer to that is - yes, it is necessary for you to file your ITR. Tax Deducted at Source or TDS is the tax that is deducted before making a payment to the recipient. The government collects a specified percentage of tax directly from various income sources such as salary, interest earnings or rental payments. The tax amount is withheld before the recipient receives the payment, and the deducted sum is subsequently transferred to the government. Also Read | ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn't miss Amarpal Chadha, Tax Partner, EY India elaborates, 'Many taxpayers believe that if TDS has already been deducted from their income, or if their employer has issued a Form 16, their compliance obligations are complete and filing an Income Tax Return is not required. However, this is a common misconception.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Pelajari Undo 'TDS, Form 16, or Form 26AS do not confirm that the overall tax liability has been correctly computed and discharged. TDS is often deducted at a prescribed rate, which may not match the actual tax liability. Moreover, it does not exempt an individual from the obligation to file an ITR,' Amarpal Chadha tells TOI. Also Read | ITR Filing FY 2024-25: Have you got an Income Tax notice? Don't ignore it! Top types of tax notices & actions required The most important thing to understand here is that filing an ITR is mandatory if one's total income, before claiming certain deductions or exemptions, exceeds the basic exemption limit, or if specific conditions under the Income Tax Act are met, like having foreign income or assets, or have undertaken high-value transactions (like expense towards foreign travel, deposits into savings account exceeding a specified amount, etc). 'Additionally, the law also mandates filing of income tax return if the aggregate of TDS and tax collected at source exceeds the specified limit,' he says. 'It is also essential to file an ITR in cases where one is seeking a refund of excess TDS, intends to carry forward losses, etc,' Chadha concludes. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
New Indian Express
31-05-2025
- Business
- New Indian Express
Why Trump is weaponising remittances
According to a report by Migration Policy Institute (MPI), a Washington DC-based think tank, the Indian diaspora comprises 5.2 million US residents who were either born in India or reported Indian ancestry or origin. Of these individuals, around 55% were born in India, and the remaining 45% were born in the United States or elsewhere. India was the third largest country of origin for immigrants who obtained a green card in 2023, after Mexico and Cuba, says a tabulation by Migration Policy Institute (MPI). Of the nearly 1.2 million people receiving a green card that year, about 78,100 (7%) were from India. The MPI further estimates that around 3,75,000 (or 3%) of the 11.3 million unauthorised immigrants in the US of mid-2022 were from India, making Indians the fifth largest among all unauthorised immigrants in the US. The Indian Diaspora in the US, which is the 10th largest in the country, stands to get most adversely affected by the new remittance tax as India is one of the biggest recipients of inward remittances from the US. About 78% Indian migrants in the US are employed in high earning sectors such as management, business, science, and arts occupations. Over 54 lakh Indians are living in the US and out of this, more than 33 lakh belong to Persons of Indian Origin (PIO) category, according to Statista. India remained the top remittance recipient in 2024. India's total remittance receipts stood at $137.7 billion during 2024 (on a calendar year basis), accounting for 3.5% of India's GDP. The annual inward remittance of $138 billion is 70% higher than India's gross FDI inflow in FY25. Therefore, strong inward remittance is a handy tool for the government of India to manage the Current Account Deficit (CAD), especially amid falling net FDI inflows (Net FDI inflows fell to $0.4 billion in FY25 from $10 billion in the previous year). According to an RBI report, 28% of India's total inward remittances came from the US – making it $38 billion of money sent to India. A back-of-the-envelope calculation suggests the 3.5% levy on remittance could add $1.33 billion of tax burden on NRIs sending money back to India. However, the real impact is yet to be known. A finance ministry official this newspaper spoke to said the government is yet to make an impact analysis of the remittance tax. According to RBI's annual report, the average cost of sending remittances of $200 to India is estimated at 5.3% in the third quarter of 2024, below the global average of 6.6%. But this is going to change after 2025, thanks to the remittance tax. The measure could place added financial pressure on Indian nationals working in the United States, says Amarpal Chadha, Tax Partner and Mobility Leader, EY India. 'Many may be forced to re-evaluate their remittance patterns, including the amount and frequency of remittances for the purpose of maintenance of family or investment in India,' he says.
