Latest news with #IncomeTaxBill
The Hindu
27-05-2025
- Business
- The Hindu
Govt extends income tax returns filing deadline to September 15, 2025 from July 31
The Central Board of Direct Taxes (CBDT) has extended the deadline for filing income tax returns (ITRs) for the financial year 2024-25 to September 15 from the earlier deadline of July 31, 2025, citing the numerous changes that the forms have undertaken and the time taken to update the systems. 'The notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting,' the CBDT said in a release on Tuesday (May 27, 2025). 'These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities.' Watch | Explained: What's in the new Income Tax Bill? The announcement comes following significant outrage on social media among the chartered accountant community, who complained that the government had not yet released the software utilities to enable the filing of the ITRs. 'In view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of Income Tax Return utilities for Assessment Year 2025-26 (financial year 2024-25), the Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing returns,' the official release added. The original due date of July 31, 2025, has been extended to September 15, 2025, it added, saying a formal notification on this would be released shortly.
Time of India
21-05-2025
- Business
- Time of India
New Income tax bill: Get one-time set off of long-term capital loss against short-term capital gains from tax year 2026–27
A one-time tax relief proposed under the new Income Tax Bill, 2025 could significantly reduce capital gains tax liabilities for many individual taxpayers. The new Income Tax bill allows long-term capital losses (LTCL) incurred up to March 31, 2026, to be set off against any short-term capital gains (STCG) from tax year 2026–27 onwards. This marks a key departure from the current provisions under the Income Tax Act, 1961, which only allow LTCL to be set off against long-term capital gains (LTCG). The proposed change, found in Clause 536(n) of the new bill, enables broader capital gains tax planning and faster loss absorption. 'Under clause 536(n) of the new tax bill, 2025 any capital loss, whether long-term or short-term, computed under the old Income Tax Act, 1961 and brought forward as on 31 March 2026, may be set off and carried forward against 'income under the head Capital gains' under the new tax bill 2025. Notably, this provision does not draw a distinction between long-term and short-term capital gains for the purpose of set-off,' said Chartered Accountant Dr Suresh Surana, according to an ET report. What's changing? Currently, under Section 74 of the Income Tax Act, 1961, long-term capital losses can only be set off against LTCG. This restriction limited the flexibility for taxpayers to manage losses. 'Currently, the Income Tax Act, 1961 allows the set-off of brought forward LTCL only against LTCG, limiting taxpayers' flexibility to offset LTCL with STCG,' said Aseem Mowar, Tax Partner at EY India. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like ตลาดหุ้นกำลังส่งสัญญาณว่าอยู่ในช่วงขาลง? IC Markets สมัคร Undo However, as per the transitional provision in the new Income Tax Bill, this restriction is being eased — but only temporarily — for losses incurred up to March 31, 2026. 'The proposed new Income Tax Bill, 2025 continues this restriction for LTCL incurred after April 1, 2026, but the 'Repeal and Saving' clause in Section 536 (specifically 536(2)(n)) permits the set-off of LTCL incurred until March 31, 2026, against any capital gains under ITB 2025 for tax years starting on or after April 1, 2026, for up to eight financial years immediately succeeding the financial year in which such loss was first computed under the current Income Tax Act, 1961,' Mowar explained. Why it matters This one-time relief can significantly reduce tax outgo for individuals who have accumulated LTCL over the years and have struggled to match it with sufficient LTCG. 'The transitional provision under Section 536(n)... carries significant implications for taxpayers holding accumulated capital losses, particularly long-term capital losses (LTCL), as on 31 March 2026,' Surana said. 'By permitting the set-off of such brought forward losses, whether long-term or short-term, against any form of capital gains... the legislation offers a temporary but meaningful departure from the restrictive loss-set-off rules under the current Income-tax Act, 1961.' It also opens the door for tax planning strategies ahead of FY 2026–27. 'Taxpayers can sell investments likely to incur long-term losses before April 1, 2026, allowing them to offset these losses against future short-term capital gains,' Mowar added. 'This dispensation, albeit temporary, allows taxpayers to leverage their losses more effectively, reducing overall tax liabilities.' Why is this only a one-time relief? Since the relief falls under the 'Repeal and Saving' clause of the new bill, it is designed to offer transitional assistance as the old Income Tax Act, 1961 is replaced. 'It is important to note that 'Repeal and Saving' clauses are typically included when old legislation is replaced with new one, ensuring that certain rights or obligations under the old law are preserved,' said Mowar. 'The majority may argue that this appears to be a well-thought-out dispensation... others may view it as an oversight, as it contradicts established provisions. Thus, it remains to be seen how the provision is ultimately enacted.' he added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
08-05-2025
- Business
- Yahoo
SC House passes new bill that will lower income tax
COLUMBIA, S.C. (WSPA) – South Carolina has the largest income tax rate in the southeast, with a top income tax rate of 6.2%. However, a new income tax reform bill could change all of it. 'End the income tax in South Carolina by putting it into statutory law and requiring the general assemblies in the future to do so, while also lowering our top marginal rate,' said Representative Brandon Newton (R – Lancaster). Originally, the House announced the Income Tax Bill that would make every South Carolinian pay a flat rate of 3.99%. Under the latest version of this bill, if you make $30,000 or more, you would pay 5.39%, but if you make less than $30,000, you would pay 1.99%. However, it would decrease over time, eventually leading to no income tax in the palmetto state. 'We will then have a flat tax that triggers, then continue down until the rate hits zero; it's a true historic day for reform in South Carolina,' said Representative Newton. Newton added, the new bill would force every South Carolinian to pay at least some income tax, which means there will be a tax increase for around 25% of residents. Representative Justin Bamberg (D – Bamberg) proposed an amendment, which he said would immediately make the income tax zero, but it was voted down. Representative Newton said you can't just bring it to zero. 'That would be a 40% deduction in the state budget in one year. I think the way that it was explained by, Frank Rainwater, in one meeting was everyone could take a prisoner home at night because we couldn't have them in the Department of Corrections. ' Representative Jordan Pace (R – Berkely), who is the head of the extremely conservative Freedom Caucus, agrees with Bamberg's amendment and said the House should have taken more time to look at the bill and see if they could cut waste in the budget to make up for it. 'Listen, I'm all about cutting taxes. I'm all about going to zero. My fear is we've rushed this entire thing in the last few weeks.' The Senate said they will not take up the bill this year, but will instead wait until next January. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to WSPA 7NEWS.
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Business Standard
01-05-2025
- Business
- Business Standard
Arvind Shrivastava takes charge as revenue secretary amid policy challenges
Arvind Shrivastava, a 1994-batch Indian Administrative Service (IAS) officer of the Karnataka cadre, on Thursday took charge as Secretary, Department of Revenue, Ministry of Finance. He was appointed to the post by the Appointments Committee of the Cabinet on April 18. Prior to this, Shrivastava served in the Prime Minister's Office as joint secretary and later as additional secretary. He has also held significant roles in the Ministry of Finance, including as joint secretary in the Budget Division under the Department of Economic Affairs. His earlier assignments include development officer at the Asian Development Bank, secretary of finance and urban development in the Karnataka government, and managing director of the Karnataka Urban Infrastructure Development & Finance Corporation. Shrivastava's appointment comes at a crucial time, as India's tax administration navigates major policy shifts and global economic headwinds. One of his immediate challenges will be ensuring robust tax revenue mobilisation in the face of international trade tensions, particularly reciprocal tariff threats by the United States. In this context, he will be expected to strategically steer India's customs policy. Sectors such as automobiles, electronics and pharmaceuticals could face pricing pressures due to foreign tariffs and rising input costs. He will also play a key role in implementing the new Income Tax Bill, 2025, which proposes a simplified tax structure aimed at reducing litigation, improving compliance and eliminating ambiguity in the existing law. Set to take effect from April 1, 2026, the bill introduces a new 'tax year' concept and consolidates TDS provisions into a single schedule. His leadership will be vital in managing the transition and ensuring that taxpayers are adequately prepared for the new compliance framework. In addition, Shrivastava is expected to support the GST Council's push for further rate rationalisation, curb leakages and drive the next phase of reforms. These include the eventual integration of petroleum products and real estate under GST. Simplifying GST compliance for small businesses and ensuring timely settlement of IGST dues will also be on his agenda. Shrivastava is further expected to advance the digital transformation of both direct and indirect tax systems. His experience in the PMO may enable better coordination among enforcement agencies operating under the Foreign Exchange Management Act (FEMA), Prevention of Money Laundering Act (PMLA) and the Income Tax Act.
Time of India
30-04-2025
- Business
- Time of India
LTCG of Rs 1.25 lakh from equities? Return filing gets simpler
NEW DELHI: Govt has notified the income tax return forms 1 and 4 for assessment year 2025-26, and made it easier for individuals with long term capital gains of up to Rs 1.25 lakh from listed equities to file returns. Govt has also made certain changes in the form regarding deductions claimed under 80C, 80GG and other sections and has provided a drop down menu in the utility for tax filers to select from. Also, assessees will have to furnish in the ITR section-wise details with regard to TDS deductions . Once utility for filing ITR is made available by the I-T department, people can start filing ITR for income earned in 2024-25. Last date for filing ITR for individuals and those who do not have to get their accounts audited is July 31. Usually, ITR forms are notified before end of the fiscal, mostly around Feb/March. This time, ITR forms and filing utility got delayed as revenue department officials were pre-occupied with new Income Tax Bill, which was introduced in Feb. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
