Latest news with #BalwantJain
Mint
17 hours ago
- Business
- Mint
ITR filing: What is AIS and how it helps you file your income tax return accurately
Income Tax Return: Filing an Income Tax Return (ITR) is an important obligation for every taxpayer in India. It allows them to report income, claim deductions, and pay any pending taxes. The Annual Information Statement (AIS) has been introduced to ensure transparency and accountability in the process. Here's everything you need to know about AIS and its importance — The Annual Information Statement (AIS) offers comprehensive details about a taxpayer for a specific financial year, including income, financial transactions and tax information. Taxpayers can view their AIS data and respond if necessary by logging into their income-tax e-filing account. Before filing income tax returns, cross-check all the reported income in Form 26AS and Annual Information Statement (AIS) to avoid errors. AIS includes information on details such as – Income information: salaries, interest income, dividends, etc. Tax information: TDS, TCS, GST returns other tax-related payments. Other taxable transactions, such as remittances, off-market transactions, etc. AIS gives a comprehensive snapshot of income and other financial transactions. It reflects financial transactions impacting the taxable income of an individual. According to Balwant Jain, tax and investment expert, AIS tries to ensure tax compliance as all transactions listed in it must be appropriately incorporated when filing income tax returns, maintaining transparency and accuracy. It further helps taxpayers provide accurate taxable information while filing ITRs to avoid penalties in future. Even if the income reported in AIS is incorrect, the income tax portal has a mechanism to flag such errors. Step 1: Go to the official website of the Income Tax Department at and log in. Step 2: Select the Annual Information Statement (AIS) menu displayed on the dashboard. Step 3: Click on the Proceed tab and you will redirected to the AIS portal, then click on the AIS tile to view the Annual Information Statement. Another way to view AIS is — Step 1: Log in to the URL Step 2: Click on the e-File menu displayed on the homepage. Step 3: Select Income Tax Return, then View AIS. Step 4: Click the Proceed button to be redirected to the AIS portal, then select the AIS tile to view the Annual Information Statement. Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.
Mint
18 hours ago
- Business
- Mint
ITR Filing: What if my income tax return is verified but not processed? Here's what to do next
ITR Filing: Millions of taxpayers across India are gearing up for the approaching income tax return (ITR) filing deadline, which is 15 September. Filing ITR is only half the job done. Once the taxpayers file their ITR, they need to verify it. After verification, it is processed by the tax department and once the processing is done, taxpayers can see the 'processing completion' notification in the tax filing portal. If taxpayers fail to e-verify their ITR within 30 days, their return becomes invalid which could lead delayed refunds and compliance issues. Sometimes, even after verifying the ITR, it takes more than usual time for processing. Before filing the ITR, the taxpayers need to ensuring that the reported income, deductions, and taxes paid are accurate. After filing, they can e-verify their claim by using Aadhaar OTP and net banking. If they want to verify it physically, they must send a signed ITR-V form by post. 'Once the verification of the ITR is completed, the IT Department checks the claims for data accuracy and tax calculation mismatches,' said Balwant Jain, a tax and investment expert, adding that 'the ITR will only be processed after this step, which may take anywhere between a few hours to 6 months, depending on the complexity of the composition of the income.' The complexity of the composition of income varies from person to person. For instance, 'ITR 1 is processed quickly because there is no capital gain and no business income,' he said. 'Whereas an ITR filed by a person with capital gains such as from mutual funds and stocks takes more time to get processed,' he added. The ITR processing system is usually on autopilot mode so an ITR gets processed easily when the declarations gets matched with the annual payment, Jain said. 'But if there is a capital gain or business income, then before processing it, the prima facie, which is Form 26AS and Annual Information Statement (AIS), is matched which is time-consuming,' Jain said. In such cases, if the tax deducted at source (TDS) is not matching in both forms, then the ITR does not get processed. Incorrect bank details and mismatched PAN and Aadhar details can also delay the process. Once a taxpayer does their part of filing the ITR and verifying it, the responsibility of processing the claim lies entirely on the income tax (IT) department. In case a person's income declarations do not match actuals, they receive a notice from the IT department regarding the mismatch. After that, the taxpayer must make the required changes in their ITR. For example, if a person is receiving an interest in a Fixed Deposit (FD) and they don't declare it in the ITR, they might get a notice. 'In such a case, a person has the option to report on an accrual basis or a receipt basis," Jain said. Accrual basis refers to declaring your gains from a FD on year on year basis, where a taxpayer can take a certificate from the bank for every year's interest or take a number from the AIS and put it in their ITR. In cash basis or a receipt basis, you notify the IT department that you will report the income only after your FD matures and you receive the amount. The IT department also has the authority to reject an ITR, however taking that step, they will issue a notice of defective return to the taxpayer. 'The taxpayer will be given a chance to rectify that mistake. And if they do not rectify it, only then the ITR can be rejected,' Jain noted.
Mint
29-07-2025
- Business
- Mint
How you can use these spending-linked deductions to save taxes
If you are looking to file your income tax returns, here is a look at how spending on certain items can help you save taxes. These deductions are available under the old tax regime. Under section 80C, the taxpayer can claim a deduction on education expenses—tuition fees. These could be related to any educational institution—university, college, or school—situated within India. This doesn't include any other payments such as development fees, donations, etc. The tuition fees could be paid on behalf of spouse or children. "This is available for any full-time education programme only. It is available for maximum two children. This deduction can help tax-payers, especially who don't have any other eligible items under section 80C. This can especially help parents with younger children," said Balwant Jain, Mumbai-based tax and investment expert. Under Section 80D, individuals can claim a deduction of up to ₹ 5,000 for payments made towards preventive health check-ups. This deduction can be availed by the taxpayer for themselves, their spouse, dependant children or parents. The payment for preventive health check-ups can be made in cash. However, you must keep receipts of such check-ups handy. If you have a dependant with disability, which requires medical treatment, such expenses can also be claimed towards deduction. The expenditure can be related to medical treatment (including nursing), training and rehabilitation of the dependant with disability. A deduction of up to ₹ 75,000 is allowed. If the dependant has severe disability, a deduction of ₹ 1.25 lakh is allowed. There are certain spending that lead to TCS (tax collected at source). Ensure it gets adjusted at the time of filing your ITR. You can use the TCS paid to reduce your tax liability to the extent of TCS paid by you. Noted, TCS can be claimed in both old and new tax regime. These are the expenses that attract TCS. If you have travelled overseas through a foreign tour package worth more than ₹ 7 lakh, a TCS (tax collected at source) of 20% is levied on such packages. You can claim this TCS at the time of filing your ITR and reduce your tax liability to that extent. If the cost is less than ₹ 7 lakh, TCS of 5% is levied. If you buy a vehicle worth more than ₹ 10 lakh, a 1% TCS applies. Also read | For some NRIs, capital gains from Indian mutual funds are tax-free If you are using the LRS (liberalised remittance scheme) route to send money abroad for any expenditure, a TCS of 20% is applicable if the amount exceeds ₹ 7 lakh. If the amount is for the purpose of education or medical treatment, a TCS of 5% is applicable if the amount exceeds ₹ 7 lakh. Remember, these rates are applicable for the financial year 2024-2025. For the new financial year, the threshold has been raised to ₹ 10 lakh.
Mint
03-07-2025
- Business
- Mint
Your questions answered: How I claimed LTCG exemption as an NRI selling agricultural land
Q. I am an NRI. I sold my agricultural land at Pune in November 2023. After consulting my CA., I deposited the indexed capital gain amount in a Capital Gains Account with a nationalised bank as per Sec. 54B to purchase agricultural land within two years from date of sale. i.e. till November-2025. But as of today, I am not in position to purchase agricultural land. Is it possible to invest the entire capital gain amount in non-agriculture assets? Is it also possible to purchase agricultural land after November-2025 without having to pay the capital gain tax? Is there any other way for capital gain tax exemption? If the individual or an HUF (Hindu Undivided Family) wishes to claim exemption for long term capital gains rising on sale of an agricultural land the taxpayer is required to purchase another agricultural land within a period of two years. In case the amount is not utilised for buying agricultural land by the due date of filing of the ITR (Income Tax Return), the tax payer is required to deposit the unutilised amount in a Capital Gains Account under Capital Gains Account Scheme (CGAS) by the due date of filing of ITR. The amount deposited in the Capital Gains Account before the due date of furnishing returns of income along with the amount already utilised is deemed to be the amount utilised for the purpose. However, if the amount is not utilised wholly or partly for the buying of agricultural land, then the amount of capital gains related with the unutilised portion of the deposit in CGAS is charged as the capital gains of the year in which the period of two years expires. You have to buy the agricultural land by November 2025. Please note that under the FEMA (Foreign Exchange Management Act) laws an NRI (Non-Resident Indian) is not allowed to buy agricultural land in India without obtaining prior permission from the Reserve Bank of India. You cannot buy agricultural land after November 2025 for claiming the benefit. As far as claiming exemption by investing in another asset i.e. a residential house under section 54F now is concerned, I think you cannot claim exemption under Section 54F now as you would have already opted for section 54B exemption while filing your ITR for the financial year 2023-2024. In my opinion, the law does not allow you to change the option now and opt for section 54F which allows a longer time of three years from date of sale of the agricultural land. Read all our personal finance stories here. Balwant Jain is a tax and investment expert and can be reached at jainbalwant@ and @jainbalwant on his X handle. Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
03-07-2025
- Business
- Mint
I want to invest in my NRI daughter's PPF—am I eligible for a Section 80C tax benefit?
Q. My daughter is settled in the UK after her marriage in 2021 and is a British passport holder. She had opened her PPF (Public Provident Fund) a/c in 2016 when she was in India. She also has savings bank accounts jointly with her mother. She does not have any source of income in India now. Can I deposit ₹ 1.5 lakh every year in her PPF account till maturity just to keep it alive, or should it be closed before the maturity period of 15 years? Though I have my own PPF account also, where I deposit ₹ 1.5 lakh every year. I filed my own ITR as a senior citizen. Can she continue her SB account as the 1st holder, or does she have to change her status in the savings bank account? Your daughter had become a non-resident under FEMA (Foreign Exchange Management Act) the day when she left India after her marriage. As per the PPF rules, a non-resident under FEMA cannot open a PPF (Public Provident Fund) account. However, he can continue to contribute to the PPF account which was opened when he/she was a resident even after becoming a non-resident. In such cases the PPF account cannot be extended beyond the initial period of 15 years. The money in a PPF account is non-repatriable, and thus the maturity proceeds can only be deposited in an NRO (Non-Resident Ordinary) account and not the NRE (Non-Resident External) account. Please note that a non-resident can remit up to 10 lakh US dollars from his NRO account every year after paying taxes in respect of the money being remitted, if any tax is payable here in India. Since you already are depositing Rs. 1.50 lakhs in your own account and thus availing full tax benefit under Section 80C, you need not deposit another Rs. 1.50 lakhs in her account, as it will not result in any additional tax benefit. To keep this account alive for 15 years, you just need to deposit Rs. 500 every year. Moreover, as per the PPF rules, a person cannot deposit more than 1.50 lakhs in his account and his children's PPF account taken together. So if you want to deposit ₹ 1.50 lakhs, I would advise you to give this money to her and then contribute ₹ 1.50 lakhs from her bank account. Since she has become a non-resident under FEMA, she should change her status to the bank, and the bank will then re-designate the existing savings bank account as an NRO account. Read all our personal finance stories here. Balwant Jain is a tax and investment expert and can be reached at jainbalwant@ and @jainbalwant on his X handle. Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
