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Economic Times
17 hours ago
- Business
- Economic Times
ITR filing for AY 2025-26: 7 prominent changes in ITR excel utilities for FY 2024-25, which taxpayers including salaried should know
Tired of too many ads? Remove Ads What are the changes in ITR validation rules for FY 2024-25 (AY 2025-26)? Place of Work Actual HRA Received Actual Rent Paid Basic Salary and Dearness Allowance 50% or 40% of Basic Salary, depending on whether the city is metro or non-metro. Enhanced Disclosure for House Rent Allowance (HRA): Tired of too many ads? Remove Ads Section 80C Deduction Popular in Wealth 1. ITR filing for AY 2025-26: 7 prominent changes in ITR excel utilities for FY 2024-25, which taxpayers including salaried should know Name of the Lender Bank Name Loan Account Number Date of Loan Sanction Total Loan Amount Loan Outstanding as on 31st March Interest of the loan Name of the Lender Bank Name Loan Account Number Date of Loan Sanction Total Loan Amount Loan Outstanding as on 31st March Tired of too many ads? Remove Ads The income tax department has made several changes in the income tax return ( ITR ) validation rules for reporting income earned during FY 2024-25 (AY 2025-26). As on date only the excel based ITR filing utilities for ITR-1 and 4 have been released. A brief look at these forms suggests that most of these changes are relevant for salaried persons, or those taxpayers who have any electric car loan, home loan, house rent, etc i.e. those who need to file of these changes are in the nature of enhanced declarations. Experts say this has been done to stop the instances of false claims of income tax deductions at the time of ITR filing. Earlier, the tax department used to check the tax deduction's authenticity manually at the time of processing the ITR. Now this process is automated and brought at the ITR filing level, which means less chances of errors in ITR and possible faster processing of of the changes in validation rules relate to tax deductions that can be claimed under the old tax regime. Here are seven changes introduced in the ITR filing utility for FY 2024-25 (AY 2025-26): claiming HRA exemption must now provide comprehensive details, including:Source: ITR-1 excel utilityTaxpayers now have to disclose the policy number or document identification number to claim Section 80C tax deduction. Do note under Section 80C eligible taxpayers can claim up to Rs 1.5 lakh as tax deduction for investing in various instruments like PPF, tax savings FD, life insurance policies, ITR-1 excel utilityHealth Insurance Details Taxpayers claiming deductions under Section 80D for medical/health insurance must now provide:•Name of the Insurance Company•Policy or Document NumberEducation Loan Interest For deductions on interest paid on education loans under Section 80E, the following details are now mandatory:Interest on Home Loan Similar disclosures are required for interest deductions under Section 80EE or 80EEA for residential house property:Electric Vehicle Loan Interest For interest paid on loans taken for the purchase of electric vehicles under Section 80EEB, taxpayers must provide:•Name of the Lender•Bank Name•Loan Account Number•Date of Loan Sanction•Total Loan Amount•Loan Outstanding as on 31st MarchTreatment of Specified Diseases Taxpayers claiming deductions under Section 80DDB for medical treatment of specified diseases are now required to mention the:•Name of the Specified DiseaseChartered Accountant Abhishek Soni, co-founder, Tax2Win, says: 'The above mentioned new requirements are introduced in the ITR-1 and ITR-4 forms for Assessment Year 2025–26, and they were not part of the old forms in this level of detail.'Soni explains using an example: 'For example, for HRA exemption, previously only the exemption amount was entered manually and for claiming the deductions, only deduction amount was entered. In technical terms, in earlier ITR forms, only aggregate deduction amounts were entered, and supporting documentation was needed only upon scrutiny. Now, the ITR utility is capturing this information upfront, indicating a shift toward pre-validation and increased compliance transparency.'Chartered Accountant Gopal Bohra, Direct Tax Partner, N. A. Shah Associates LLP, says: "In order to bring more control or vigil over wrong claim of various deductions under the old tax regime, the Income Tax Department has introduced several new validation rules in the e-Filing portal, so that the data which is being uploaded are accurate and compliant to the validation rules. In case, data quality defect is of category A nature, return will not be allowed to be uploaded, and an error message will be displayed."Bohra adds: "In category A defect, 276 validation rules for ITR -1 and 347 for ITR 4 are deployed and if any of the validation rules fails, return will not be allowed to be uploaded. Just to explain some of the category A validation rules, taxpayer who is claiming deduction for health insurance premium is required to disclose the name of the insurance company and policy number for claiming deduction under section 80D. Similarly, in relation to interest on education loan, housing loan, purchase of electric vehicle for claiming deduction under section 80E, 24(b)/80EE/80EEA, 80EEB respectively, details of bank from which loan is taken and date of sanction to be provided. If any of these fields are missing in the ITR, taxpayer may not be able to upload the ITR. Further, if the data quality as provided by the taxpayer is accurate, the tax return will be processed quickly."Experts say the tax deduction system was abused, which is why the tax department may have introduced these changes. Chartered Accountant Ashish Niraj, Partner, A S N & Company, says: " In recent past income tax department has detected many cases where Income Tax Refund was obtained on the basis of false claims or forged documents, hence additional information are being sought now in ITR 1 for cross verification purpose at the time of assessment if required.'According to Niraj, "Some taxpayers used to claim HRA Deduction and also Home Loan Interest deduction even though both was in same city. Now 'Place of work' is required for claiming HRA. For Loan related deductions also Name of Financials Institutions/Bank, Loan Account No, Date of Sanction, Total Loan Amount, Outstanding Loan Amount , Interest etc is required to check the authenticity of the deductions. For Investment related deductions Policy/Document Number are required , for 80D Name of Insurer also required apart from policy details etc. All these information are now sought so that taxpayer can claim deduction only if he has full details available."
Yahoo
a day ago
- Business
- Yahoo
Ramsey County: Economic Development Authority to allow flexibility on housing projects
Ramsey County has established an Economic Development Authority, allowing the county to assist small businesses in areas such as technical, advisory services and expansion. The county's Housing Redevelopment Authority previously was only able to fund specifically housing-related projects. With the addition of the EDA, the HRA's levy funding now can be used more broadly, according to District 6 Commissioner Mai Chong Xiong. Small business programming, for example, would be allowed. The creation of the EDA is allowed due an omnibus bill signed last month by Gov. Tim Walz. 'This legislation allows Ramsey County to use the HRA levy more flexibly by expanding what it can fund without adding another tax,' Xiong said in a May 27 statement. 'That means deeper investments in small business support, commercial corridors, workforce infrastructure, and the stability of the neighborhoods we serve. Notably, the passage of the EDA comes at a critical time as counties brace for significant cuts to federal funding to housing, creating high-stakes urgency to stretch every local dollar further and smarter.' City councils in the county who are members of the HRA must opt-in or opt-out of business programming through the passage of resolutions by June. Expanding the HRA's authority supports the county in taking a more modern approach to an affordable housing plan, said Rep. Liz Lee, DFL-St. Paul, who authored the legislation in the Minnesota House. It will allow the county to focus on needs beyond just housing. It could mean affordable housing units above a nonprofit laundromat, Lee said. It will help officials create a community people want to live in, rather than just concentrating those living in poverty into public housing. Mixed-use projects can be challenging to develop across the entire county, said Josh Olson, Ramsey County's director of Community and Economic Development. 'I think the two things that I would say is, this is about flexibility more than anything else. It's about our opportunity to kind of support the community in a proactive but also holistic way.' Olson said. 'The other is, the county is going to remain focused on affordable housing. That is, and has been the lion's share of how we've spent the HRA, and I expect that to not change substantially even with this change in legislation.' The flexibility ties into the county's Economic Competitiveness and Inclusion Plan, with the county focusing on adding affordable housing, redevelopment, businesses and workforce, Olson said. 'We've been in a housing crisis here, nationally, regionally, and we have felt that we still can intend to invest heavily through our multiple uses, but that investing solely in housing or narrowly in housing doesn't get the county out of a housing crisis,' Olson said. 'And so one aspect of that is in that intersection where it supports businesses, and that, in turn, supports job opportunities and job growth as well as wage growth. And so that's really kind of the nexus that links all these things.' The county directed $11.1 million to affordable housing and redevelopment projects as part of the 2022-2023 budget. Air quality alert extended to noon Wednesday throughout Minnesota 'An absolute privilege': Darts President Ann Bailey offers advice, reflects on 10 years in Dakota County aging services Charges to be dismissed in St. Paul sexual assault case Maplewood shooting: St. Paul man fired on car while kids cowered nearby, charges say Police looking for hit-and-run driver who injured 2 pedestrians in Falcon Heights
Time of India
a day ago
- Business
- Time of India
Details must to claim exemptions, deductions in new ITR
Ahmedabad: Taxpayers, especially those under the old regime, will need to provide comprehensive information while claiming exemptions and deductions in their income tax return (ITR) for the assessment year 2025-26. The ITR utility is now available, and tax experts have stated that submitting detailed information has become compulsory. This includes insurance company names, policy numbers, housing loan particulars, actual house rent allowance (HRA), and rent payments. Additional requirements include information on landlords for HRA claims, registration numbers of political parties for donation deductions, and other relevant details. For medical treatment deductions, specific ailment details are now required. Tax experts indicate that this unprecedented requirement for detailed information aims to prevent fraudulent deduction claims. International tax expert Mukesh Patel said, "This year, the income tax department made it mandatory to disclose various details for all the exemptions and deductions, especially under the old regime. The department aims to stop fake deduction claims. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Banheiro escorregadio? Barra de apoio vira febre no Brasil Evite quedas e escorregões Saiba Mais Undo Based on the details submitted in the ITR by the taxpayers, the department will cross-check such deductions." With the ITR filing deadline extended to Sep 15, taxpayers must collect all necessary documentation. Chartered accountant Karim Lakhani said, "For claiming HRA exemption, the taxpayers will have to give details of the place of work, actual HRA received, actual rent paid, apart from landlord details. For claiming a deduction for insurance premiums under section 80C, the taxpayer is required to submit the policy number or receipt number. Similarly, for the deduction for PPF account, the taxpayer will have to mention the account number in the return. Also, for claiming a deduction for health insurance, the name of the insurance company and policy number must be submitted." Tax authorities have noticed numerous instances of false deduction claims due to minimal documentation requirements. According to experts, taxpayers should gather all the required information for filing ITR so they can claim various deductions and exemptions easily. Box: Additional details to be provided For HRA exemption: The taxpayer will be required to provide details about the actual HRA received and the house rent paid Under Section 80C: The taxpayer must provide the document or receipt number of the insurance policy and the PPF account number Under Section 80D: The name of the health insurance company and the policy number must be provided For home loan interest deduction: The taxpayer will need to give details of the lender, loan particulars, and the outstanding amount Treatment of diseases: To claim a deduction for the treatment of a specific disease, details of the disease will have to be provided
News18
2 days ago
- Business
- News18
ITR Filing 2025: How To Handle Income Tax Notices, Avoid Penalties
Last Updated: Even if you've filed your tax returns on time, receiving a notice or intimation from the Income Tax Department can feel unsettling ITR Filing 2025: Even if you've filed your tax returns on time, receiving a notice or intimation from the Income Tax Department can feel unsettling. It's crucial to address these notices quickly and accurately. Start by carefully reading the notice to understand its purpose — common triggers include income discrepancies, TDS mismatches, or missing information. Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, advises: 'To handle an income tax notice, log into the e-filing portal and head to the 'e-Proceedings' section. This is where you can view and respond electronically. Make sure to gather all key documents, including Form 16, bank statements, and investment proofs." Manikandan S, Tax Expert at Cleartax, emphasizes: 'Differentiate between an intimation and a notice. An intimation shares processing details and may not need a response, but a notice requires your attention. Verify the notice's authenticity on the e-filing portal before acting, especially with the Centralized Communication Scheme (CCS) now ensuring all notices are sent electronically." Most notices are routine and manageable — the key is understanding them and responding correctly to avoid penalties and unnecessary stress. Here are some practical tips: Don't Ignore: Every notice has a deadline — missing it can lead to penalties. Be Accurate: Mismatches can trigger further scrutiny. Usually sent to highlight TDS mismatches, calculation errors, or late filing. Section 245 Adjustment against past dues If a refund is due but you have past tax arrears, the department may adjust the refund. Action: Check under 'e-Proceedings' in your portal. Agree/disagree with the reasons within 15 days. No response means automatic adjustment. Section 142(1) Sent if you haven't filed your return or if additional details are needed. Action: File your pending return, if any. Submit requested documents by the deadline to avoid penalties. Section 139(9) Defective return Sent for errors or missing details in your return. Correct and re-file within 15 days via 'e-Proceedings'. Ignoring this may invalidate your return. Seeks clarification on high-value transactions like large cash deposits or property purchases. HRA and TDS Mismatch Notices Sent when your HRA claim or TDS details don't align with department data. Action: Verify tenant TDS compliance if rent exceeds ₹50,000/month. Keep rent receipts and landlord PAN details handy. If there's a genuine mismatch, file an updated return and keep proof. Section 143(2) Scrutiny notice Indicates your return is selected for detailed examination. Action: Submit all relevant proofs (income, deductions, expenses). Attend hearings or respond through the portal. Non-response can lead to estimated tax assessments. Section 148 Issued if undisclosed income is suspected in earlier returns. Action: File a revised return or provide explanations as required. Share proof of income sources. Ignoring this can reopen past assessments and attract penalties. Section 271AAC(1) Penalty for unexplained income Issued if unexplained income, like sudden deposits, is found during scrutiny. Action: top videos View all Provide clear documentation of the income's source. Note that penalties can be as high as 60% for unexplained income. Most of these notices can be handled smoothly with prompt action and accurate information. If you're unsure, always consult a tax expert to avoid bigger issues later. About the Author Aparna Deb Aparna Deb is a Subeditor and writes for the business vertical of She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : itr Location : New Delhi, India, India First Published: June 02, 2025, 14:50 IST News business » tax ITR Filing 2025: How To Handle Income Tax Notices, Avoid Penalties
India.com
5 days ago
- Business
- India.com
8th Pay Commission Salary Calculations: How will salary be calculated under 8th Pay Commission? Check projected revised pays, HRA & other allowances if fitment factor is…
8th Pay Commission Salary Calculations: How will salary be calculated under 8th Pay Commission? Check projected revised pays, HRA & other allowances if fitment factor is... Salary under 8th Pay Commission: The Central government is soon going to announce the 8th Pay Commission. Once the 8th CPC's recommendations are approved, the employees will start getting the revised salary. The 7th Pay Commission categorised employees' salaries on the basis of the pay matrix, where there are 18 levels. Employees with different ranks and responsibilities come under these basic pay levels. In Levels 4-9, employees such as junior staff, assistants, middle management, and junior officers come. All central employees got a 2.57 fitment factor in the 7th Pay Commission. What if the same fitment factor is applied to the 8th Pay Commission salary structure? What can be projected gross and total salaries, house rent allowance (HRA) and travel allowance (TA), and National Pension System (NPS) and Central Government Health Scheme (CGHS) contributions at a 2.57 fitment factor? We will take the examples of Level 4 (basic pay Rs 25,500), Level 5 (basic pay Rs 29,200), Level 6 (basic pay Rs 35,400), Level 7 (basic pay Rs 44,900), Level 8 (basic pay Rs 47,600), Level 9 (basic pay Rs 53,100) for our calculations. In the 7th Pay Commission, the pay matrix forms the basic pay structure for central government employees. It has 18 levels, 4 pay bands and 15 grade pays. The levels categorise employees based on their ranks and responsibilities. In Level 1-5, entry-level clerks, junior staff, clerks, and assistants come, while in levels 6-9, middle management and junior officers come. In Level 10 onwards, senior rank officers come. Apart from the basic salary, employees get dearness allowance (DA), which is revised twice a year. Other allowances such as HRA, TA, and child education are also added to the salary. Contributions to National Pension System (NPS) are mandatory for employees who joined from January 1, 2004, and onwards, and CGHS are deducted from the salary to form the total salary that the employee gets. The salary is revised on the basis of the fitment factor. The basic salary is multiplied by it to establish the revised basic pay. Allowances are added to it to form the revised salary. For the 6th Pay Commission, the fitment factor was 1.92; for the 7th, it was 2.57. It will be known once 8th Pay Commission recommendations are approved. But it may be anywhere in the range of 1.92-2.86.
