Latest news with #I-TDepartment
Time of India
a day ago
- Business
- Time of India
Crypto income on I-T radar; department sends emails to individuals
The Income Tax Department has sent a communication to thousands of individuals who have undertaken cryptocurrency transactions but failed to reflect this income in their returns, official sources said Friday. These transactions pertain to assessment years 2023-24 and 2024-25, they said. The department and its policy-making body, the Central Board of Direct Taxes (CBDT), suspect tax evasion and money laundering by certain "high-risk" people who are potentially using "unaccounted" income to invest in virtual digital assets (VDAs), commonly known as cryptocurrency. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 23.7% Returns in last 5 years with Shriram Life's ULIP Shriram Life Insurance Undo Sources told PTI that the I-T Department has sent e-mails to thousands of defaulting people nudging them to file an updated Income Tax Return (ITR) if any income on account of crypto transactions has not been declared or mis-declared by them. This communication is part of the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign undertaken by the department with a philosophy of "trust taxpayers first" philosophy. Live Events According to section 115BBH of the Income Tax Act (provided by the Finance Act of 2022), a flat tax rate of 30 per cent (plus applicable surcharge and cess) is levied on income from crypto transfers. The provision does not allow deduction of any expenses except the cost of acquisition. Further, set-off of losses from crypto investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. Sources indicated that data analytics done by the tax department has shown that a "significant" number of people have not filed the Schedule VDA (for crypto) in their ITRs, and such people were offering tax on the income earned at a lower rate or claiming cost indexation. It is understood that the ITRs filed by taxpayers are being verified by the department with tax deducted at source (TDS) returns filed by various cryptocurrency exchanges (Virtual Asset Service Providers), and the defaulters may be selected for further "verification or scrutiny". This is the third in the NUDGE series campaign undertaken by the I-T Department and the CBDT, where they gently remind taxpayers about their liabilities. The previous two were related to seeking correct declarations on foreign assets and income by taxpayers and withdrawal of bogus claims of deduction under section 80GGC of the I-T Act.
News18
a day ago
- Business
- News18
Crypto income on I-T radar; dept send emails to individuals
Agency: PTI Last Updated: New Delhi, Jun 13 (PTI) The Income Tax Department has sent a communication to thousands of individuals who have undertaken cryptocurrency transactions but failed to reflect this income in their returns, official sources said Friday. These transactions pertain to assessment years 2023-24 and 2024-25, they said. The department and its policy-making body, the Central Board of Direct Taxes (CBDT), suspect tax evasion and money laundering by certain 'high-risk" people who are potentially using 'unaccounted" income to invest in virtual digital assets (VDAs), commonly known as cryptocurrency. Sources told PTI that the I-T Department has sent e-mails to thousands of defaulting people nudging them to file an updated Income Tax Return (ITR) if any income on account of crypto transactions has not been declared or mis-declared by them. This communication is part of the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign undertaken by the department with a philosophy of 'trust taxpayers first" philosophy. According to section 115BBH of the Income Tax Act (provided by the Finance Act of 2022), a flat tax rate of 30 per cent (plus applicable surcharge and cess) is levied on income from crypto transfers. The provision does not allow deduction of any expenses except the cost of acquisition. Further, set-off of losses from crypto investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. Sources indicated that data analytics done by the tax department has shown that a 'significant" number of people have not filed the Schedule VDA (for crypto) in their ITRs, and such people were offering tax on the income earned at a lower rate or claiming cost indexation. It is understood that the ITRs filed by taxpayers are being verified by the department with tax deducted at source (TDS) returns filed by various cryptocurrency exchanges (Virtual Asset Service Providers), and the defaulters may be selected for further 'verification or scrutiny". This is the third in the NUDGE series campaign undertaken by the I-T Department and the CBDT, where they gently remind taxpayers about their liabilities. The previous two were related to seeking correct declarations on foreign assets and income by taxpayers and withdrawal of bogus claims of deduction under section 80GGC of the I-T Act. PTI NES RHL First Published: June 13, 2025, 21:45 IST
Hindustan Times
02-06-2025
- Business
- Hindustan Times
CBI books senior IRS official, others, in ₹4.22 cr disproportionate assets case
Mumbai: The Central Bureau of Investigation (CBI) has booked a senior Indian Revenue Service (IRS) officer currently posted with the Income Tax (I-T) Department for allegedly possessing assets worth ₹4.22 crore, disproportionate to his known sources of income. The action follows the agency's verification of a complaint received from the vigilance wing of the I-T Department. According to the CBI's First Information Report (FIR), the assets were allegedly accumulated during the officer's postings in Gujarat between January 2012 and March 2021. Alongside the officer, the CBI has named four others as co-accused — his wife, a Gujarat-based chartered accountant, and two officials associated with a partner firm of a Gujarat real estate group — for allegedly aiding him in concealing and investing illicit wealth. The agency has also booked unnamed individuals under relevant provisions of the Indian Penal Code and the Prevention of Corruption (PC) Act for abetment and criminal misconduct by a public servant. The complaint from the Directorate General of Income Tax (Vigilance), New Delhi, dated August 2024, alleged that the officer had amassed several immovable properties in his and his wife's name that were not commensurate with their declared income. It cited details of four such properties and other financial transactions for verification. A discreet enquiry by a CBI inspector, completed in February this year, corroborated the allegations. The findings indicated that the officer had acquired both movable and immovable assets, including multiple properties, in his and his family members' names during his tenure in Gujarat. The CBI stated that the officer was on study leave abroad when the probe was initiated. In one instance highlighted in the FIR, the officer is alleged to have purchased four villas in Gujarat in September 2020, registering them in the name of his wife and the relative of the chartered accountant. Within a week of registration, the chartered accountant's family member reportedly executed a will transferring their share of the property — along with other valuable items — to the IRS officer. The FIR further mentions that a search conducted by the I-T Department in September 2021 led to the seizure of evidence suggesting these properties were undervalued at the time of purchase, raising concerns about possible irregularities. A senior CBI official said, 'The officer was found in possession of disproportionate assets amounting to ₹4.22 crore. He prima facie misused his official position to enrich himself illicitly, in violation of the Prevention of Corruption Act.' The agency also noted that several of the transactions and asset acquisitions were not disclosed to the department, as required under the Conduct Rules applicable to public servants. Further investigations are underway to determine the full extent of the alleged misconduct and the roles of the other accused.
Indian Express
30-04-2025
- Business
- Indian Express
ITR notified by Income Tax department: Taxpayers can now disclose capital gains in ITR-1
The Income Tax (I-T) Department has notified income tax returns for assessment year 2025-26 (financial year 2024-25) enabling the filing of returns effective April 1. This year onwards, the tax department has included a provision to file details of long-term capital gains within the ITR-1 and ITR-4 formats. Earlier, taxpayers filing ITR-1 had to file the details of capital gains in ITR-2 separately. Taxpayers are required to file details of capital gains where the assessee has only long-term capital gains under section 112A not exceeding Rs 1.25 lakh and does not have any brought forward loss or loss to be carried forward. Ease of filing LTCG The I-T Department, which functions under the Central Board of Direct Taxes (CBDT), will soon operationalise the filing functionalities for the commonly used segments ITR-1 Sahaj and ITR-4 Sugam. ITR-1 can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property, other sources (interest, etc), long-term capital gains under section 112A up to Rs 1.25 lakh, and agricultural income up to Rs 5,000. Section 112A of the Income-tax Act provides for the taxation of long-term capital gains (LTCG) arising from the sale of listed equity shares, equity-oriented mutual funds, and units of business trusts. A long-term capital gain is the profit earned from the sale of shares or other assets when they are held for more than 12 months (for listed securities) or 24 months (for other assets) at the time of sale. ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total income up to Rs 50 lakh, having income from business and profession, and having long-term capital gains under section 112A upto Rs 1.25 lakh. Sandeep Sehgal, Partner-Tax, AKM Global, a tax and consulting firm said, 'Previously, any LTCG under Section 112A, regardless of the amount, necessitated the use of the more complex ITR-2 form. With the latest amendments, individuals can now utilise the simpler ITR-1 (Sahaj) or ITR-4 (Sugam) forms if their LTCG under Section 112A does not exceed Rs 1.25 lakh and they have no capital losses to carry forward or set off. This change streamlines the tax filing process, making it more accessible and less burdensome for small investors and salaried individuals, thereby encouraging timely and accurate compliance.' Details sought by Income Tax Department in ITR Apart from disclosing the income earned from various sources, taxpayers need to provide details of any expenditure over Rs 2 lakh for travel to a foreign country for self or for any other person in the ITR. Any expenditure of over Rs 1 lakh incurred on consumption of electricity during the previous year should also to be declared in the tax return. Taxpayers must also disclose the deposit of an amount or aggregate of amounts of over Rs 1 crore in one or more current accounts during the previous year while filing ITR. Importance of AIS and Form 26AS In addition, while filing the income tax return, the detailed summary through Annual Information Statement (AIS) and Form 26AS is available to the taxpayer, who can either accept it as correct, or provide feedback if there are discrepancies. The AIS is a summary of a taxpayer's financial transactions given in Form 26AS, which contains details of all Tax Deducted or Collected at Source (TDS/ TCS) along with other details regarding interest, dividend, and stock market and mutual fund transactions. Since AIS includes details of financial transactions from reporting entities, the information will be available only after it gets updated from reporting entities such as banks and financial institutions. Similarly, Form 26AS gets updated after the I-T Department processes the TDS returns. Since the last date for filing TDS returns for the January-March quarter is May 31, the updated information is available only in the first week of June. Taxpayers can file their ITR at
Indian Express
23-04-2025
- Business
- Indian Express
From watches to handbags, and paintings: Income Tax dept notifies luxury items on which taxpayers will have to pay 1% TCS
Wrist watches, handbags, antiques, paintings, sculptures, sunglasses, home theatre systems, shoes and sportswear priced over Rs 10 lakh will now face a Tax Collected at Source (TCS) levy of 1 per cent at the point of sale effective Tuesday, the Income Tax Department said in an official notification. Though this announcement to bring in some goods, apart from motor vehicles, into the ambit of TCS was announced in the July 2024 Budget and was to be implemented from January 1 this year, the I-T Department has notified the categories of other items now. The move is expected to help the tax authorities to trace the sale of such luxury goods and match it with the income tax profile of taxpayers to detect any possible evasion. What are the items that are likely to invite TCS levy In a notification dated April 22, the Income Tax Department has notified the new rules for the levy of TCS on sales of these luxury items priced over Rs 10 lakh. As per the list shared by the Department, sale of any wrist watch; any art piece such as antiques, painting, sculpture; any collectibles such as coin, stamp; any yacht, rowing boat, canoe, helicopter; any pair of sunglasses; any bag such as handbag, purse; any pair of shoes; any sportswear and equipment such as golf kit, ski-wear; any home theatre system; and any horse for horse racing in race clubs, horse for polo, will now attract a 1 per cent TCS. The obligation to collect TCS will be on the seller in respect of the notified goods such as wrist watches, art objects such as paintings, sculptures, and antiques, collectible items including coins and stamps, yachts, helicopters, luxury handbags, sunglasses, footwear, high-end sportswear and equipment, home theatre systems, and horses intended for racing or polo. How will TCS help in expanding tax base? Tax experts said the move to levy TCS on luxury goods will help expand the tax base. Buyers of luxury goods may face extra KYC requirements, they said. 'This notification operationalises the government's intent to enhance monitoring of high-value discretionary expenditure and strengthen the audit trail in the luxury goods segment. It reflects a broader policy objective of expanding the tax base and promoting greater financial transparency. Sellers will now be required to ensure timely compliance with TCS provisions, while buyers of notified luxury goods may experience enhanced KYC requirements and documentation at the time of purchase. Although the luxury goods sector may undergo some transitional challenges, this measure is expected to promote formalisation and improved regulatory oversight over time,' Sandeep Jhunjhunwala, tax partner at Nangia Andersen LLP said. The Budget for 2024-25, presented in July 2024, had mentioned amendment of Section 206C of the Income-tax Act. The Finance Act, 2024 had stated that a seller of a motor vehicle priced above Rs 10 lakh or any other goods, as may be specified by the Central government by notification, will have to collect a 1 per cent TCS from the buyer on the sale consideration as income-tax. The TCS levy for motor vehicles priced above Rs 10 lakh had come into effect from January 1 this year. Other categories of goods have been notified now.
