Latest news with #GopalBohra
Time of India
29-04-2025
- Business
- Time of India
ITR forms yet to be notified by Income Tax Department: Will it lead to ITR filing deadline extension?
The Income Tax Department is yet to notify the income tax return (ITR) forms for the financial year 2024-25 or assessment year 2025-26. Over the last 3-4 years, it has been seen that the Income Tax Department usually notifies the forms either before the end of the financial year or at the start of the assessment year. However, this year, the tax department has yet to notify the ITR forms, even though one month is about to pass. #Pahalgam Terrorist Attack The groundwork before India mounts a strike at Pakistan India considers closing airspace to Pakistani carriers amid rising tensions Cold Start: India's answer to Pakistan's nuclear threats ET Wealth online decodes the reasons for the delay in the ITR forms notification and whether this delay could lead to an extension of the ITR filing deadline . Reasons for delay in ITR forms notification According to tax experts, there are certain reasons for the delay in the notification of ITR forms. These include income tax changes announced in the Finance Act in July 2024 and structural changes. Gopal Bohra, Partner, NA Shah & Associates - a tax consulting firm says, "If one look at the last three years release of ITR Forms by CBDT, it will be observed that ITR Forms are released well before the end of the relevant financial year for which taxpayer is required to file his tax return. For example, ITR Forms for AY 2022-23, 2023-24 and 2024-25 were notified on 30.03.2022, 10.02.2023 and 22.12.2023, respectively. For AY 2025-26, the ITR Forms have not yet been notified by CBDT. This delay could be attributed to the fact that the Central Board of Direct Taxes (CBDT) is trying to upgrade or fix their ITR utilities to accurately map the data fetched from various sources to avoid any error in processing the tax return." Usually, taxpayers who need to claim income tax refunds file their income tax return as early as possible so that they can get their income tax refund in a timely manner from the tax department. Live Events Ashish Karundia, Practising Chartered Accountant, says, "The delay in issuing the ITR forms and their corresponding utilities for AY 2025-26 may stem from enhanced disclosure requirements, integration with Annual Information Statement (AIS)/Taxpayer Information Statement (TIS) data, and the implementation of new provisions of income tax relevant to assessment year 2025-26. The intention could be to ensure a comprehensive verification process before ITR forms release, aiming for accurate data mapping to minimise errors and avoid mismatches that may lead to taxpayer grievances." Tarun Kumar Madaan, Practising Chartered Accountant, says, "The full Budget for FY 2024-25 was presented on 23rd July and became an Act in August 2024. In regular years, the Budget is presented in February and becomes an Act by March. So, the CBDT have sufficient time to make changes in ITR forms by adding relevant changes according to the changes in the income tax laws. This could be a possible reason for the delay in releasing forms. Further in Budget 2024, there were a lot of amendments and capturing them in ITR forms that will take time. At least that capital gains date of 23rd July 2024 and change in holding period & rate in all asset classes, removal of indexation, etc, are some of the changes that need time to incorporate in this year's ITR forms." It is important to note that certain court judgments have asked the CBDT to notify the ITR forms by April 1 to provide sufficient time to the taxpayers to file their income tax returns. Madaan says, "The timely availability of Income Tax Return (ITR) forms is crucial for enabling taxpayers to meet their compliance obligations within prescribed statutory timelines. Multiple High Courts have emphasised this through various landmark judgments, such as the Punjab and Haryana High Court in the Vishal Garg v. Union of India case, the Delhi High Court in Avinash Gupta v. Union of India and the Gujarat High Court in the case of All Gujarat Federation of Tax Consultants v. CBDT. Through these rulings, the courts across multiple jurisdictions, i.e., Punjab & Haryana, Delhi, and Gujarat, have stressed that: ITR forms and audit report utilities must be made available by 1st April of the assessment year. Any delays must be justified with recorded reasons. If delays impact taxpayers' ability to comply, authorities must consider extending filing deadlines and notify the public. The judiciary has consistently recognised the inconvenience and hardship caused by administrative delays and placed the responsibility squarely on the tax authorities to ensure smooth and fair compliance processes. Will ITR filing deadline be extended due to delay in ITR forms? There is a delay in notifying ITR forms, which means taxpayers will have less time to file their income tax returns. Will CBDT extend the ITR filing deadline from July 31, 2025, for AY 2025-26? Karundia says, "Ideally, these forms should be made available by March 31 to give taxpayers sufficient time to file their tax returns, especially since the deadline for ITR filing is fixed. As there is a delay in ITR forms, CBDT should extend the last date to file ITR." Concurring with the view Shah says, "In the past, it has been seen that if there is a delay in notifying ITR Forms or utilities, the CBDT has extended the due date of filing the tax returns. This year, also, almost one month has already been lost, and the ITR Forms and necessary utilities for filing the tax returns have not been notified. Therefore, taxpayers are deprived of this time for preparing the tax return and considering this, it is possible that CBDT may extend the due date."
Time of India
24-04-2025
- Business
- Time of India
New 1% TCS: Know the list of specified goods, threshold, effective date and more as CBDT released FAQ
Frequently Asked Questions (FAQs) about TCS on luxury goods Q.1 What changes were brought in section 206C(1F) of the Income Tax Act, 1961 through Finance (No. 2) Act, 2024? Q.2 Which are the luxury goods of value exceeding Rs 10 lakh on which TCS will be levied? Live Events Serial number Nature of goods 1. Any wrist watch 2. Any art piece such as antiques, painting, sculpture 3. Any collectibles such as coin, stamp 4. Any yacht, rowing boats, canoes, helicopters 5. Any pair of sunglasses 6. Any bag such as handbag, purse 7. Any pair of shoes 8. Any sportswear and equipment such as golf kit, ski-wear 9. Any home theatre system 10. Any horse for horse racing in race clubs and horse for polo Q.3 Whether TCS will be levied on sale of a single item of the notified goods of value exceeding Rs 10 lakh? Q.4 When will the new provisions become effective? Can the buyer be held in default if the seller of specified luxury goods does not deduct TCS? What is the rate of TCS on specified luxury goods? As per the Finance Minister's announcement made in the July 2024 Budget, a new tax collected at source (TCS) has been imposed on a specified list of luxury goods sold in India effective from April 22, 2025. In this regard the Central Board of Direct Taxes (CBDT) has issued two notifications and one frequently asked questions (FAQs) circular. The first notification is about the nature of luxury goods, while the second one is about the tax rate and threshold purchase amount above which tax will be below to know more about TCS on luxury to an Income Tax Department circular released on April 24, 2025, here are the details:Earlier, Section 206C(1F) provided for collection of tax at source (TCS) on sale of motor vehicles of value exceeding Rs 10 lakh. Vide Finance (No. 2) Act, 2024, section 206C(1F) was amended to provide that TCS will also be levied on any other goods of value exceeding Rs 10 lakh, as may be notified by the Central Government in the Official Vide CBDT Notification No. 36/2025 dated 22.4.2025 SO 1825(E), the following goods of the value exceeding ten lakh rupees have been notified for collection of tax at source as specified in sub-section (1F) of section 206C of the Act –Chartered Accountant Gopal Bohra , Partner, Direct Tax, N. A. Shah Associates LLP, says: "The business which are dealing in specified luxury items, that cost over Rs 10 lakh, will collect TCS @ 1% from the buyer of goods and the TCS so collected shall be over and above the purchase value of the goods. The buyer will be able to claim credit of such TCS while filling his ITR. Through this reporting, the income tax department will be able to track high value transactions and in case the income declared by the taxpayer in his ITR does not justify such high value spending, tax department may further enquire about the sources of such spendings."Answer: Yes, TCS will be levied on sale of a single item of the goods of the nature specified in the above table which is of the value exceeding Rs 10 The new provisions will become effective from the date of publication of notification i.e. to Bohra, "The primary responsibility of TCS on high value specified luxury items is on the seller of goods and if seller fails to collect such tax, the buyer of goods is not in default. If the seller after collecting the TCS did not deposit the same with the government, he shall be liable for penal consequences in accordance with the law. However, in such a scenario, the buyer of goods may find difficulty in getting credit of such TCS as the same will not reflect in his 26AS statement. In that event the buyer may approach to the seller to deposit the TCS with the government so that appropriate credit reflects in his 26AS statement or file a complaint to the jurisdictional TDS officer of the seller about non deposit of TCS collected from him."TCS will be collected by the seller of such specified luxury goods at 1% rate on the entire value (of any of the notified items) so long as the sale consideration exceeds Rs 10 note that TCS is not any extra tax, it's merely sort of an advance tax which can be claimed at the time of income tax return (ITR) filing. Once the seller collects TCS from you, they will deposit it with the government and also file a TCS return intimating that he collected TCS against your PAN. Once the TCS amount is deposited against your PAN, then you can use it to claim an income tax credit and pay a lower tax in the ITR remember to collect the TCS certificate from the seller once the income tax is deposited against your PAN.
