Latest news with #IncomeTaxDepartment
News18
10 hours ago
- Business
- News18
Why Students And First-Time Earners Should File ITR Early
Last Updated: When you file ITR, you create documented proof of income. This record often becomes crucial while applying for loans, credit cards or renting property. In India, many students and first-time earners believe filing an Income Tax Return (ITR) is only meant for high-income individuals or business owners. However, even if your annual income is below the taxable limit, filing an ITR can bring long-term financial benefits and should be seen as a good financial habit from the very start of your earning journey. 1. Build a Financial Record When you file an ITR, you create documented proof of income with the Income Tax Department. This record often becomes crucial while applying for loans, credit cards, or renting property. For example, if you plan to buy a car or home in the future, lenders often ask for ITR copies of previous years to assess your repayment capacity. 2. Simplify Visa Processing Many foreign consulates, including those of the USA, UK, Canada, and Australia, require ITR documents as proof of financial stability when you apply for a student or work visa. Having at least a couple of years of ITR filing history strengthens your application. 3. Claim Tax Refunds Even students and beginners may face Tax Deducted at Source (TDS) on stipends, part-time job earnings, or freelance work. Filing an ITR helps claim a refund of any excess tax deducted. For instance, if your stipend is below the taxable limit but TDS has been deducted, you can get the entire amount refunded by filing returns. 4. Carry Forward Losses If you have invested in shares, mutual funds, or crypto and suffered a capital loss, filing ITR allows you to carry forward these losses for up to eight years. These losses can be adjusted against future capital gains, reducing tax liability later. 5. Future Tax Compliance and Discipline Starting early helps students and first-time earners understand the process of filing returns, PAN-Aadhaar linking, and managing digital tax platforms like the income tax portal. This builds confidence and ensures they are well-prepared when their income eventually crosses the taxable limit. 6. Build Better Financial Habits Filing ITR encourages young earners to track income and expenses, invest wisely, and adopt better financial planning. It instils discipline and an understanding of how taxation works in India. Filing ITR is not just a legal formality but an investment in your financial future. For students and first-time earners, it sets the foundation for responsible money management and opens up opportunities that require proof of stable and legal income. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Indian Express
12 hours ago
- Business
- Indian Express
ITR Filing Last Date 2025: What happens if you miss the deadline?
ITR Filing Last Date 2025: Filing income tax returns (ITR) is a crucial responsibility for all Indian taxpayers. It requires complying with tax laws, in addition to declaring all sources of income, deducting qualifying expenses, and reporting tax liabilities to the Income Tax Department. The deadline for non-audit taxpayers to file their ITR for the financial year 2024–25 (Assessment Year 2025–26) has been extended to September 15, 2025. But if you miss the deadline, you can still file a late return by December 31, 2025, along with paying late fees and interest. Missing the deadline may result in serious penalties and charges under Section 234A and a late filing fee under Section 234F. 1. Interest: If you submit your return after the deadline, one has to pay interest at 1% per month or part of a month on the unpaid tax amount under Section 234A. 2. Late fees: Late filing fees is charged under Section 234F. Rs.5,000 of the late fee will be charged on total income more than Rs. 5 lakh and Rs.1,000, if it falls beneath Rs.5 lakh. 3. Loss Adjustment If you have losses from the stock market, mutual funds, homes, or any of your businesses, you can carry them forward and balance them against your income the following year. This provision significantly reduces your tax liability in subsequent years. However, if you fail to file your ITR by the deadline, you will be unable to carry forward these losses.
Scroll.in
19 hours ago
- Business
- Scroll.in
I-T tribunal rejects Congress' plea for tax break on Rs 199 crore income
The Income Tax Appellate Tribunal on Monday dismissed an appeal by the Congress seeking tax exemption on an income of Rs 199 crore for the assessment year 2018-'19, Live Law reported. The tribunal rejected the party's claim under Section 13A of the 1961 Income Tax Act, observing that the Congress had filed its tax returns late and violated rules related to cash donation limits. A bench of Judicial Member Satbeer Singh Godara and Accountant Member M Balaganesh ruled: 'The assessee's return filed on [February 2, 2019] is not within the 'due' date to make it eligible for the impugned exemption.' The deadline for filing the income tax return for 2018-'19 was December 31, 2018. Its tax tiling for the year also did not provide details about contributions worth Rs 14.4 lakh out of the total donations worth Rs 142.8 crore it had received that year. Due to its non-compliance with the provisions to claim exemption, the Income Tax Department had issued notices to the Congress in September 2019, January 2020 and March 2020, demanding a tax of Rs 94.4 crore on an assessed income of Rs 199.1 crores for 2018-'19. The assessment order dated July 6, 2021, had denied the entire exemption claim, making the full receipt amount taxable. The Congress challenged the assessment order in August 2021 and applied for a stay on the recovery of the amount demanded by the Income Tax Department in October 2021. Later that month, an assessment officer disposed of the application, directing the Congress to pay 20% of its outstanding tax liability, failing which it would be treated as a defaulter. However, the Congress did not pay the 20% tax amount, leading the Income Tax Department to issue a letter in January 2023 to the Congress requiring the party to deposit and liquidate its tax liability. The Congress challenged this before the Commissioner of Income Tax (Appeals), the Income Tax Appellate Tribunal and the Delhi High Court, being denied relief at every forum. The High Court had criticised the Congress for 'badly' handling the matter and said that somebody from the Congress' office 'went off to sleep' from 2021. In April 2024, less than three weeks before polling began in the Lok Sabha elections, the Congress received tax notices for seven other assessment years. Are political parties exempt from income tax? Under Section 13A of the 1961 Income Tax Act, registered political parties will be exempt from paying tax on the income they receive provided they fulfil certain conditions. The party must maintain a book of accounts recording its income. It must maintain a record of the names and addresses of each person who contributes a sum over Rs 20,000 to it. The party's accounts must be audited by a chartered accountant. It must only accept contributions over Rs 20,000 via cheque, demand draft, electronic clearing system or other prescribed electronic modes. To claim an exemption, the treasurer of the party must submit a report listing all donations over Rs 20,000 received by the party in a financial year to the Election Commission by the due date for filing income tax returns. The provision also requires parties to file a tax return for the previous year. If any of these conditions are not satisfied, the party will not be able to claim income tax relief, according to Section 13A of the Income Tax Act and Section 29C of the 1951 Representation of the People Act.
Mint
a day ago
- Mint
Fake ‘PAN 2.0' scam alert: Government warns citizens against phishing emails — What you must know
The Government of India has issued a strong warning against a new phishing scam circulating via email that falsely promises users an upgraded 'PAN 2.0' card. According to the Press Information Bureau's (PIB) Fact Check unit and the Income Tax Department, these emails are entirely fake and designed to steal personal and financial information from unsuspecting citizens. The scam operates through phishing emails sent from suspicious addresses such asinfo@ often with subject lines like 'Get Your PAN 2.0 Card.' These emails attempt to lure recipients into clicking on a link that allegedly lets them download a new version of their e-PAN card featuring a QR code. However, instead of leading to a government website, the link redirects users to a fraudulent site crafted to look official. Once there, individuals are asked to enter sensitive details such as their PAN number, Aadhaar number, bank account information, and other personal credentials. This stolen information can then be used for identity theft or financial fraud. The PIB Fact Check unit posted an alert on social media, clearly stating: 'Scam alert!! Have you received an email asking you to click on a link to download your e-PAN Card? … This email is #Fake.' The Income Tax Department also emphasised that it does not send unsolicited emails or SMS messages asking for personal or financial details. Genuine PAN-related services are provided only through official government portals and not via random emails or third-party websites. The government has advised citizens to remain vigilant and to follow some key safety measures to protect themselves from falling victim to such scams. Firstly, always verify the sender's email address, legitimate government communications will come from domains ending Secondly, users are urged never to click on suspicious links or download attachments that claim to be from government agencies without proper verification. Official e-PAN services can only be accessed via the Income Tax Department's website or NSDL/UTIITSL portals. In the event of receiving such a phishing email, the government encourages users to report it immediately. Complaints and suspicious emails should be forwarded towebmanager@ andincident@ These agencies are actively monitoring the scam and will take appropriate action to contain the threat. The warning comes at a critical time when more citizens are relying on digital services for tax filings and financial transactions. Cybercriminals are taking advantage of this growing dependency on digital infrastructure to launch sophisticated scams that mimic official government communication.
Hindustan Times
a day ago
- Business
- Hindustan Times
ITR filing 2025 last date extended
The last date for the filing of Income Tax Returns (ITR) for the financial year 2024-25 (Assessment Year 2025-26) has been extended. while the date for the filing of the return has been extended, the payment of any due self-assessment taxes must be finished by July 31.(Reuters) The Central Board of Direct Taxes has released a new deadline for ITR filing for non-audit cases, including salaried taxpayers. The final date to file the ITR for them has now been moved to September 15, 2025, from the earlier date July 31, 2025, according to the CBDT circular. Filing beyond this date will lead to a penalty of ₹5,000 (if income exceeds ₹5 lakh) and ₹1,000 for lower income groups under Section 234F. Belated or revised returns can be filed till December 31, 2025, and updated returns (ITR-U) can be filed till March 31, 2030. However, while the date for the filing of the return has been extended, the payment of any due self-assessment taxes must be finished by July 31. If not, penal interest under Section 234A may be accrued. The extension comes after alleged delays in the availability of updated ITR forms and e-filing facilities on the Income Tax Department's portal. Apart from this, the late reflection of TDS data in Form 26AS and AIS also led to challenges for the taxpayers, who urged for extension to ensure precise filing. The deadline extension also leads to a positive reflection on the refund interests. Taxpayers who are due refunds may get up to 33 per cent higher interest under Section 244A. This is because the interest is accrued from April 1, despite the extension. This interest is taxable and must be reported in the ITR. The Income Tax Department introduced a new Excel-based offline utility for filing the Income Tax Return-1 and Income Tax Return-4. Under this utility, taxpayers will be able to validate their returns by creating a JSON file and uploading it to the e-filing portal.
