Latest news with #Income-TaxDepartment
The Hindu
5 days ago
- Business
- The Hindu
Dr. Reddy's gets I-T Dept order for notice over ₹2,396 crore tax demand
The Income-Tax Department has issued an order that paves way for notice to generic drugmaker Dr. Reddy's Laboratories over almost ₹2,396-crore tax demand. The Assistant Commissioner of Income Tax, Circle 8(1), Hyderabad, in a May 30 order, deemed it appropriate to issue a notice under Section 148 of the Income-tax Act, 1961 to assess or reassess the income for assessment year 2020-21, Dr. Reddy's said in a filing on Saturday. The order follows a show cause notice in April on why a notice should not be issued for assessment of income 'alleged to be escaped from tax consequent to the merger of Dr. Reddy's Holding into Dr. Reddy's under a scheme of amalgamation approved by the National Company Law Tribunal (NCLT), Hyderabad on April 5, 2022. As per the April 4, 2025 notice, the tax demand was quantified at ₹2,395,81,79,470, Dr. Reddy's said. The scheme of amalgamation was carried with adherence to all legal requirements, including tax laws, and approved by NCLT, Hyderabad, on April 5, 2022 with effect from the appointed date April 1, 2019. The company said it strongly believes that there is 'no escapement of tax pursuant to the said merger scheme.' Nonetheless, it is reviewing the order/notice and will take actions as required, appropriately, Dr. Reddy's said. 'Based on our assessment, there is no material impact on the financials, operations, or other activities of the company at this stage,' it said.
&w=3840&q=100)
Business Standard
21-05-2025
- Business
- Business Standard
Do NRIs have to file tax returns in India: What's the rule and process
It is the time to file Income Tax returns (ITR) and many non-resident Indians (NRIs) are likely asking: Do they need to do so in India? While the process is simple, experts say NRIs need to carefully give details about their earnings. Do NRIs need to pay income tax in India? 'An NRI is liable to pay tax in India only on the income earned or received in India. This includes rent from Indian property, interest on Non-Resident Ordinary (NRO) accounts, which is savings or current account in Indian Rupees for NRIs in India, or capital gains from Indian assets,' said S R Patnaik, partner and head of taxation at law firm Cyril Amarchand Mangaldas. Who is considered as NRI? According to the Income-Tax Department, an individual's residential status is the first factor in determining tax liability. If you've spent less than 182 days in India in a financial year, you're typically considered a non-resident — and taxed accordingly. How is filing taxes different for NRIs? 'Resident individuals are taxed on global income and can use ITR-1 (Sahaj) for simple income sources. NRIs, however, must use ITR-2 if they don't have business income, or ITR-3 if they do,' Patnaik explained. Common mistakes by NRIs in ITR filing 'NRIs often misclassify their residential status or forget to update banks and mutual funds about the change,' said Amit Bansal, partner at Singhania & Co, a global legal consultancy firm. Also Read 'They also tend to use the wrong ITR form or miss reporting Indian income such as interest earned in NRO accounts.' Bansal advised NRIs to maintain travel records, inform Income Tax Department promptly, and consult a professional to ensure correct classification and filing. Foreign income and reporting: What's mandatory? 'If you're an NRI for tax purposes, your foreign income is not taxable in India,' Patnaik said. 'Also, unlike residents, NRIs are not mandated to disclose foreign bank accounts or assets under Schedule FA. However, they may do so voluntarily.' According to the Central Board of Direct Taxes, mandatory foreign asset disclosure applies only to individuals classified as residents under the Income Tax Act, especially those falling under the Resident but Not Ordinarily Resident (RNOR) category. ALSO READ | No major policy shifts for NRI tax filing for AY 2025–26 The CBDT has released the ITR forms applicable for Assessment Year 2025-26. Form ITR-2 has been updated for clarity and no NRI-specific policy changes or exemptions have been introduced, according to the two experts.
Hans India
09-05-2025
- Business
- Hans India
I-T dept slaps 1% TCS on select luxury goods
Mumbai: The Income-Tax Department has issued a notice stating that 1 per cent TCS (tax collected at source) will be imposed on sale of certain luxury goods priced above Rs 10 lakh effective from April move is a strategic step towards enhancing tax transparency and tracking high-value consumption trend. Talking to Bizz Buzz, Samir Jani, president, All India Federation of Tax Practitioners says, 'The I-T Dept would be mapping on expenditure.' If you are buying items above Rs10 lakh and not showing the same in your I-T Return, then the Dept can catch hold of you. However, there will not be any problem with the honest taxpayers, he said. Effective April 22, the levy applies to notified products exceeding Rs10 lakh in value with tax applicable on the full transaction amount in excess of Rs10 lakhs. Munjal Almoula, head of tax, BDO India says: 'The much-anticipated notification on TCS on luxury goods brings clarity on scope and thresholds.' This move is a strategic step towards enhancing tax transparency and tracking high-value consumption trends, a move that aligns with global trends in tax surveillance and tax transparency, he said. In fact, 1% TCS had already been implemented. The only thing that new items have come under its ambit now.
&w=3840&q=100)
Business Standard
01-05-2025
- Business
- Business Standard
New ITR forms for AY 2025-26 make filing taxes easier for small investors
The government has notified Income Tax Return (ITR) Forms 1 (Sahaj) and 4 (Sugam) for Assessment Year (AY) 2025-26, aiming to make filing returns simpler for small taxpayers and salaried individuals, especially those with modest long-term capital gains (LTCG) from listed securities. Simpler filing for small investors Individuals earning LTCG up to Rs 1.25 lakh annually from listed shares and mutual funds will now be able to file returns using ITR-1 or ITR-4 instead of the more complex ITR-2. "This move reflects a clear shift towards enhancing taxpayer services by simplifying the return filing process for individual taxpayers," EY India's tax partner Samir Kanabar was quoted by PTI as saying. "It is expected to reduce filing-related stress and encourage greater voluntary compliance." Previously, even exempt LTCG income required filing detailed forms like ITR-2 or ITR-3, leading to a heavier compliance burden for small investors. Changes in deductions and reporting The forms have also been updated to include: Drop-down options for claiming deductions under Sections 80C, 80GG, and others. Section-wise TDS disclosure to enhance transparency in tax credit claims. According to PTI, the return utility will soon be available at the Income-Tax Department's portal, with the date for filing returns set for July 31, 2025, for taxpayers not requiring an audit. Background and delay in notification Typically, ITR forms are notified before the end of a Financial Year. The delay this year, according to PTI, was due to the Revenue Department focusing on a new Income Tax Bill introduced in Parliament in February. Expert View: Welcome relief for salaried taxpayers Tax professionals have largely welcomed the changes. "The ITR-1 and ITR-4 for AY 2025-26 remain broadly similar to last year's versions, but the inclusion of LTCG under Section 112A within the Rs 1.25 lakh threshold is a significant improvement,' said Divya Baweja, partner, Deloitte India, in a statement. "This change allows eligible taxpayers to file simpler forms, which was not permitted earlier." Sandeep Jhunjhunwala, tax partner at Nangia Andersen LLP, told PTI that earlier salaried individuals with even minimal capital gains were forced to use ITR-2, requiring detailed disclosures. 'This inconvenience is now reduced,' he added. Similarly, AKM Global's Sandeep Sehgal noted that the new forms will make tax filing more accessible for small investors and salaried individuals, improving timely and accurate compliance. Who can use sahaj and sugam? ITR-1 (Sahaj): For residents earning up to Rs 50 lakh from salary, one house property, and other income (like interest), with agriculture income not exceeding Rs 5,000. ITR-4 (Sugam): For individuals, HUFs, and firms (excluding LLPs) with income up to Rs 50 lakh from business or profession under the presumptive taxation scheme. What is assessment year and financial year
&w=3840&q=100)
Business Standard
01-05-2025
- Business
- Business Standard
May 2025 tax filing & compliance deadlines: What's due, when, and by whom
May is a month of tax deadlines for individuals, employers, financial institutions and other organisations. Here's a role-wise breakdown of each deadline set by the Income-Tax Department. May 7, 2025 What's due Deposit of TDS/TCS for April 2025 Uploading Form 27C declarations for April Who must act Employers and other deductors: Ensure all tax deducted or collected in April is deposited to the government account by May 7. Late payment attracts interest at 1.5 per cent per month. Buyers (Form 27C declarants): Submit any lower-withholding declarations (Form 27C) to your seller or collector; sellers/collectors must upload these declarations to the department's portal by this date. May 15, 2025 What's due Issue TDS certificates for March deductions under Sections 194-IA (property), 194M (contractors), and 194S (specified persons) Furnish Form 24G for government offices (April's TDS/TCS paid without challan) Quarterly TCS statement for January–March quarter Form 3BB by stock exchanges/recognised associations (April trades with modified client codes) Who must act Specified deductors (property buyers, contractors, designated persons): Issue March TDS certificates to payees. Government offices: File Form 24G if April's TDS/TCS was deposited without production of a challan. Collectors of TCS: Submit Q4 (January-March) TCS statement. Stock exchanges and recognized associations: Report April transactions with altered client codes via Form 3BB. May 30, 2025 What's due Challan-cum-statement for April TDS under Sections 194-IA, 194-IB, 194M, 194S Issue TCS certificates for Q4 FY25 Section 285B statement for FY25 Who must act All deductors under the above sections: File your challan-cum-statement for April deductions. TCS collectors: Provide Q4 certificates to buyers to help them claim credits. Applicable deductors (e.g., NRE bank branches): Furnish the annual statement under Section 285B. May 31, 2025 What's due Quarterly TDS statement for January-March quarter Trustee return for approved superannuation fund contributions Form 61A (SFTR) and Form 61B (CRS) Who must act
