Latest news with #Rs.5
India.com
19 hours ago
- Entertainment
- India.com
This 2 hours 8 minutes film will give you goosebumps, climax will blow your mind, earned Rs..., film is..,lead actors are...
This 2 hours 8 minutes film will give you goosebumps, climax will blow your mind, earned Rs..., film is..,lead actors are... Are you someone who likes to watch a thriller film that will have you on the edge of your seat as you keep wondering what could happen next? You are in great luck because we are going to recommend a movie that fans of the genre need to watch . After you finish this movie, you will be left somewhat bewildered because of the film's elaborate plot , captivating storyline , and twists that you didn ' t see coming . That 's right , we ' re speaking of the 706 . This 2-hour 8-minute film was released in 2017 and combines dread, suspense, and supernatural aspects. It was written and directed by Shravan Tiwari and stars Yashvit Sancheti as a mysterious child at the heart of the story, Divya Dutta as a psychiatrist, Atul Kulkarni as a police officer, and Mohan Agashe as a spiritual guru. The plot of the film revolves around Dr. Suman (played by Divya Dutta), whose husband mysteriously goes missing. While she goes out to search for her husband tirelessly, she encounters a mentally unstable child at a hospital who reveals some shocking truths, one of them being that her husband has died. As the mystery unfolds, layers of disturbing secrets come out, keeping the audience guessing about what's coming next. Despite being relatively underrated, 706 has managed to earn a 5.3 out of 10 on IMDb. However, while this film was made on a humble budget of just Rs.5 crores, tit has collected double its budget, a whopping Rs 10 crores at the box office—proving that content still reigns supreme. What's even better is that you can now watch 706 for free on YouTube. So, if you're someone who enjoys horror with a strong storyline, mystery, and deep characters, this film will be a treat for you. Thank us later.
Economic Times
a day ago
- Business
- Economic Times
Filing ITR for FY2024-25? Mistakes in HRA claims, capital gains tax calculation are among 7 errors to avoid
Getty Images Remember to incorporate all income-tax related changes introduced during Budget 2024 while filing your returns next time. At the very onset of the tax filing season, taxpayers have received a bonus—a 45-day extension for filing returns. The deadline has been shifted from 31 July to 15 September to accommodate the extensive structural changes in ITR forms introduced by the Budget 2024. While the extension may be welcomed by many, you could still end up with errors in your returns due to these changes. Non-compliance with new changes may not be the only mistake you make. Despite technological improvement in online tax filing, taxpayers end up with several errors. 'The pre-filled data from Form 16, 26AS, AIS/TIS, real-time validation and auto-calculations have reduced the chances of errors, but if the data you provide and confirm is not correct, it may lead to mistakes in the return,' says Kuldip Kumar, Partner, Mainstay Tax Advisors. These mistakes cover a wide gamut, ranging from picking wrong ITR forms, misreporting or not reporting income, not reconciling income and taxes, to making mistakes in HRA claims or while changing jobs. These can result in faulty tax computation, income tax notices, penalties, re-filing of returns and delayed refunds. To help you avoid these, we list some such of the most common mistakes are seemingly simple, yet problematic—picking the wrong ITR form, not verifying the submitted return, not adhering to deadlines, or assuming one doesn't need to file returns at all.'Different income sources and taxpayer categories require specific ITR forms and using an incorrect form can lead to rejection or processing delays,' says Umesh Kumar Jethani, Founder, ApkiReturn. While picking ITR forms this year, remember that you can use ITR 1 form if you have up to Rs.1.25 lakh in long-term capital gains (LTCG) from shares or equity mutual funds, instead of the more complicated ITR 2 or 3 mandated common mistake is thinking that you are exempt from filing returns because you have zero tax liability. A full tax rebate under Section 87A is available for individuals with taxable incomes up to Rs.7 lakh in the new tax regime and Rs.5 lakh in the old regime, making income up to Rs.7 lakh (or Rs.5 lakh) tax-free. This doesn't mean you may not have to file tax returns. If you have incurred certain expenses (over Rs.2 lakh in foreign travel, Rs.1 lakh in power consumption, among others), it is mandatory for you to file returns. Similarly, if you are eligible for a tax/TDS refund or have to carry forward losses, you will not be able to claim it without filing returns.'Only individuals with total taxable income below the basic exemption limit are not required to file returns. Under the new tax regime, this limit is Rs.3 lakh, and Rs.2.5 lakh in the old regime for those below 60,' says Amit Maheshwari, Tax Partner, AKM Global. 31 March 2030 Last date for filing updated return for financial year 2024-25. 15 Sep 2025 Last date to file tax return for salaried taxpayers and those not requiring an audit, for financial year 2024-25 (assessment year 2025-26). If you miss it... You can file a belated tax return till 31 December 2025, though you will have to pay a penalty and interest. The late filing fee is Rs.1,000 if your income is less than Rs.5 lakh, and Rs.5,000 if the income is more than Rs.5 lakh. The interest will be 1% per month on the unpaid tax from the due date till the return is filed. 31 Oct 2025 For individuals and professionals requiring audit for financial year 2024-25 (assessment year 2025-26). If you miss it... You can file a belated tax return till 31 December 2025, though you will be charged the same penalty as that for breaching the 15 September deadline. In addition to this, the assessing officer can levy a penalty of `1.5 lakh or 0.5% of turnover, whichever is lower. 31 Dec 2025 Last date to file revised or belated tax return if you miss the 15 September deadline. If you miss it... You can file an updated return till four years from the end of the relevant assessment year. However, you will have to pay an additional tax at the rate of 25%, 50%, 60% and 70% of the tax for the first, second, third and fourth years, respectively, depending on the year in which you file. 'In case of wilful default, even prosecution proceedings may be initiated under Section 276CC. There is a provision of imprisonment of six months to seven years with a fine, where tax evaded is more than Rs.25 lakh, and from three months to two years with a fine, in other cases,' says the tax return has been filed after the due date (15 September this year), you can be penalised up to Rs.5,000 under Section 234F (see 'Don't miss these tax filing deadlines'). This is besides the 1% per month interest you will be levied for unpaid tax. As far as updated returns are concerned, you can file till four years after the relevant assessment year, as per the change announced in last year's Budget. Who needs to file income tax returns? Find out the conditions under which you are exempted from filing returns and when it's compulsory to do so. You're exempt from filing if.. Your annual income before deductions and exemptions is… Less than Rs.2.5 lakh in old tax regime. Less than Rs.3 lakh in old tax regime if you are between 60 and 80. Less than Rs.5 lakh in old tax regime if you are over 80. Less than Rs.3 lakh in new tax regime. You are over 75, with only income being pension and interest from the same bank, and the bank has deducted tax. Even if you're exempt,file a return if… You have a tax refund due. You have a TDS/ TCS refund due. You need to apply for a loan, passport or visa. You want to carry forward losses from business/ profession or under capital gains head in the future. Even if you're exempt, it is mandatory to file a return if … You have a foreign income or hold foreign assets. You are a company or a firm, regardless of profit or loss. You have deposited Rs.50 lakh or more in savings account, or Rs.1 crore or more in current account. You have spent Rs.2 lakh or more on foreign travel. Your electricity consumption is over Rs.1 lakh. Your aggregate TDS/ TCS is more than Rs.25,000 (Rs.50,000 for senior citizens). You have a business turnover of over Rs.60 lakh, or professional turnover of more than Rs.10 lakh. The most likely mistakes this year could be related to the changes introduced by the Budget 2024. There are not only structural changes in the ITR forms that require compliance by taxpayers (see 'Comply with these Budget 2024 changes'), but also deductions and capital gain taxation changes that could lead to calculation errors.'Removal of indexation from long-term capital gain calculation is the biggest change from Budget 2024, for which the cut-off date is 23 July 2024,' says Shubham Agrawal, Senior Taxation Adviser, TaxFile. in. Both the capital gain taxation rates and holding periods have been rationalised (see 'Capital gain rates…'). While long-term gains from listed shares and equity funds will be taxed at 12.5% without indexation, short-term gains will be taxed at 20%, up from 15% the capital gains schedule has also been modified to report gains separately for periods before and on or after 23 July 2024. What this means is that taxpayers will now have to bifurcate their gains based on whether the transfer occurred before or after this other changes, remember that while using ITR forms 1, 2, 3 and 5, you can only use your Aadhaar number, not the Aadhaar enrolment ID. 'Besides, the new tax regime has become the default tax regime, and if you wish to opt for the old tax regime, you will have to explicitly choose it by filing Form 10-IEA before filing your ITR,' says mistake many people make before filing their tax returns is not checking the Annual Information Statement (AIS) and Form 26AS, which provide a summary of all their transactions and taxes.'Form 26AS is a tax credit statement that primarily serves as a summary of taxes credited against a taxpayer's PAN,' says Raj Lakhotia, Managing Partner, LABH & Associates. It includes details such as tax deducted at source (TDS), tax collected at source (TCS), advance tax and self-assessment tax payments, refunds issued by the Income Tax Department, and details of specified high-value transactions like property purchases, mutual fund investments, AIS, on the other hand, is more comprehensive and reflects both the reported value and that accepted or modified by the taxpayer, enabling users to verify the information and submit feedback, in case of discrepancies. This information includes interest income from savings accounts, fixed deposits and recurring deposits, dividend income, securities transactions like purchase and sale of shares, mutual funds, rent received, foreign remittances, high-value credit card spends, among reconcile the data, first compare the information in AIS and Form 26AS with your own financial statements, Form 16, bank statements, and investment proofs. 'If there are any mismatches (TDS not reflected, incorrect income figures), contact the deductor (employer, bank) to get it rectified,' says Jethani.'Reconciliation of both with the ITR helps avoid discrepancies, prevents underreporting or duplicate claims, facilitates faster processing of returns and refunds, and avoids tax notices,' says you fail to list all your incomes by mistake or intentionally, it can prove very expensive. 'Since most filings are based on AIS and TIS, people only refer to these, but there is the risk of missing out incomes on which TDS is not deducted, such as interest on sovereign gold bonds or rent for residential property if it is less than Rs.50,000 a month,' says Agrawal.'It's also easy to miss out on interest from savings accounts, fixed and recurring deposits, crypto, or freelance, rental and foreign incomes,' says Sudhir Kaushik, Founder & CEO, frequently overlook categories of income that are accrued but not received, or not actively tracked, such as capital gains from sale or redemption of shares, mutual funds, real estate, or other capital assets, and dividend income, especially when credited without TDS or reinvested,' says income that is typically not included is the one derived from assets transferred to the spouse without consideration, or income from minor children. 'Also, in case of sale of jointly owned property with spouse but funded only by one, people report capital gains proportionately in both the returns, rather than in the return of the spouse who funded it,' says Kumar. After Budget 2024 Capital gain rates & holding periods have changedDepending on whether it is underreporting or misreporting of income, it can result in a penalty of 50-200% of the due tax, besides interest liability and even risk of prosecution in extreme exempt income is not a part of your total taxable income, it is mandatory to report it under the appropriate section (Schedule EI). 'Non-reporting of such income may lead to a defective return, and if the defect is not rectified within the prescribed timeline,the return may be treated as invalid,' says Lakhotia. Agrees Kumar: 'With automated processes in place, it is likely to get noticed. This may result in waste of time and energy responding to notices and giving explanations why it was missed.'Exempt income that needs to be reported includes agricultural income; share of profit from a partnership firm; interest income from Public Provident Fund (PPF); interest income from tax-free bonds; gratuity and leave encashment (up to specified limits under Section 10(10AA)); maturity proceeds of life insurance policies (subject to conditions under Section 10(10D)); exempt portion of house rent allowance (HRA) under Section 10(13A); exempt portion of leave travel allowance/concession (LTA/LTC) under Section 10(5); commuted pension (up to specified limits under Section 10(10A)); Sukanya Samriddhi proceeds and interest earned; interest and maturity proceeds from Employees' Provident Fund (EPF), subject to specified conditions; and income of a minor child clubbed with the parent (exempt up to specified limit under Section 10(32)).When people change jobs within a financial year, they are likely to make the following accounting mistakes. Claiming basic exemption & deduction twice: 'Both new and previous employers may independently apply basic exemption limit, standard deduction, and deductions under Chapter VI-A, especially if investment declarations have been submitted twice, resulting in double claiming of tax benefits and lower TDS deducted,' says Lakhotia. 'Where such tax liability, net of TDS/TCS, is more than Rs.10,000, the employee will end up paying interest under Sections 234B and 234C if he doesn't pay advance tax,' cautions Kumar. 'Also, irrespective of the number of employers during the year, the standard deduction is capped at Rs.75,000 in the new regime,' says Agrawal. Not consolidating Form 16s, incomes: Obtain Form 16 from all employers and consolidate income and tax details as it can lead to incomplete income reporting and inaccuracies in TDS credits. 'Ensure all income, including any arrears, bonuses, or final settlement from the previous employer, is included,' says Jethani. Not reconciling Form 16 & Form 26AS : Failure to check the TDS details in Form 16 and those reflected in Form 26AS may lead to missing mismatches, which can result in delays or tax notices. Ignoring taxability of gratuity, leave encashment: 'The other common mistake is claiming exemption for gratuity or leave encashment exceeding the maximum amount specified in the Act if the employee does not keep track of claims in the previous employments,' says Kumar. Failure to account for these can cause errors in tax liability computation. Last year, the Income Tax Department uncovered rent receipts worth Rs.1 crore by a single employee and bore down on the company employees who had used the same PAN multiple times to claim HRA exemption. Don't make the mistake of conducting fraud as it can result in hefty penalties, including a fine of up to 200% of the misreported exemption is available under the old tax regime to salaried employees as part of their salary structure. To claim it, you need to provide documentary proof, including a formal rent agreement, rent receipts and landlord's PAN (if annual rent exceeds Rs.1 lakh), to the employer, besides actually staying in a rented usage of fake or incorrect PAN details can be easily detected via PAN verification systems, while any mismatch in the rent paid by you and that received by the landlord is bound to get a tax notice. Another red flag for the tax authorites is a mismatch in the rental address and the one linked to Aadhaar or other official an employee fails to declare or submit proof to the employer, he can still claim HRA exemption at the time of filing returns under Section 10(13A). 'However, tax authorities could audit the return to verify the claim. So, preserve supporting documents, such as rent agreement, rent receipts, bank statements reflecting the payment of rent, and where the rent paid exceeds Rs.50,000 a month, evidence of tax deducted at source by the employee,' says Kumar.'You cannot claim exemption if you stay in your own house or with parents, unless you pay them rent with a valid formal agreement and genuine bank transactions for rent transfers,' says the taxpayer pays rent but doesn't receive HRA from employer, a separate deduction under Section 80GG is available up to Rs.5,000 a month, but is subject to You have no formal rent agreement. You have no proof of bank transactions. Incorrect PAN of landlord (for over Rs.1 lakh a year rent). Rental address is not authentic. Your HRA claim differs from that of employer. How it's caught It may not always be mandatory, but its absence can raise suspicion. Tax department can check bank statements. It's easily caught through PAN verification. Mismatch with address in Aadhaar card or other official records can catch it. Employer submits details of HRA exemption in Form 16. The following alterations need to be incorporated by taxpayers in their returns this year. Capital gains & IT formsTaxpayers who have long-term capital gains of up to Rs.1.25 lakh and are not carrying forward capital losses can now file using simpler ITR 1 form, instead of the previously mandated complex ITR 2 or ITR 3 forms. This is after the increase in LTCG exemption limit on listed equity shares and equity-oriented mutual funds from Rs.1 lakh to Rs.1.25 lakh in a financial year. Capital gain split From 23 July 2024, the LTCG on listed equity shares and equity-oriented mutual funds will be taxed at 12.5% without indexation, from 10% earlier, while the short-term capital gains (STCG) will be taxed at 20%, from the earlier 15%. Taxpayers will have to bifurcate their gains based on whether the transfer occurred before or after this date. Buyback as dividend Buying back of shares on or after 1 October 2024 will be considered as dividend in the hands of shareholders and should be reported as 'Income from other sources', instead of capital gains. It will be taxed at applicable slab rate without any deduction of the cost of acquisition. TDS schedule This year, you will need to mention the TDS section under which tax was deducted for income in 2024-25 if you are using forms ITR 1, 2, 3, or 5. Actual Aadhaar You can file the tax returns this year for forms ITR 1, 2, 3 and 5 using only the actual Aadhaar number, not the Aadhaar enrolment ID. Updated return timeline The timeline for filing updated returns (ITR-U) has been extended from 24 months to 48 months. Asset-liability threshold The threshold for reporting assets and liabilities in the tax return has been increased from Rs.50 lakh earlier to Rs.1 crore now. Disability certificate For disabled individuals, taxpayers could earlier claim deduction under Section 80DD or Section 80U in the old regime by quoting Form 10-IA. Now, they will have to give acknowledgement number of disability certificates as well.
Economic Times
a day ago
- Business
- Economic Times
Wealth - edition 2-Jun-2025, to june-8-2025
Getty Images Remember to incorporate all income-tax related changes introduced during Budget 2024 while filing your returns next time. At the very onset of the tax filing season, taxpayers have received a bonus—a 45-day extension for filing returns. The deadline has been shifted from 31 July to 15 September to accommodate the extensive structural changes in ITR forms introduced by the Budget 2024. While the extension may be welcomed by many, you could still end up with errors in your returns due to these changes. Non-compliance with new changes may not be the only mistake you make. Despite technological improvement in online tax filing, taxpayers end up with several errors. 'The pre-filled data from Form 16, 26AS, AIS/TIS, real-time validation and auto-calculations have reduced the chances of errors, but if the data you provide and confirm is not correct, it may lead to mistakes in the return,' says Kuldip Kumar, Partner, Mainstay Tax Advisors. These mistakes cover a wide gamut, ranging from picking wrong ITR forms, misreporting or not reporting income, not reconciling income and taxes, to making mistakes in HRA claims or while changing jobs. These can result in faulty tax computation, income tax notices, penalties, re-filing of returns and delayed refunds. To help you avoid these, we list some such of the most common mistakes are seemingly simple, yet problematic—picking the wrong ITR form, not verifying the submitted return, not adhering to deadlines, or assuming one doesn't need to file returns at all.'Different income sources and taxpayer categories require specific ITR forms and using an incorrect form can lead to rejection or processing delays,' says Umesh Kumar Jethani, Founder, ApkiReturn. While picking ITR forms this year, remember that you can use ITR 1 form if you have up to Rs.1.25 lakh in long-term capital gains (LTCG) from shares or equity mutual funds, instead of the more complicated ITR 2 or 3 mandated common mistake is thinking that you are exempt from filing returns because you have zero tax liability. A full tax rebate under Section 87A is available for individuals with taxable incomes up to Rs.7 lakh in the new tax regime and Rs.5 lakh in the old regime, making income up to Rs.7 lakh (or Rs.5 lakh) tax-free. This doesn't mean you may not have to file tax returns. If you have incurred certain expenses (over Rs.2 lakh in foreign travel, Rs.1 lakh in power consumption, among others), it is mandatory for you to file returns. Similarly, if you are eligible for a tax/TDS refund or have to carry forward losses, you will not be able to claim it without filing returns.'Only individuals with total taxable income below the basic exemption limit are not required to file returns. Under the new tax regime, this limit is Rs.3 lakh, and Rs.2.5 lakh in the old regime for those below 60,' says Amit Maheshwari, Tax Partner, AKM Global. 31 March 2030 Last date for filing updated return for financial year 2024-25. 15 Sep 2025 Last date to file tax return for salaried taxpayers and those not requiring an audit, for financial year 2024-25 (assessment year 2025-26). If you miss it... You can file a belated tax return till 31 December 2025, though you will have to pay a penalty and interest. The late filing fee is Rs.1,000 if your income is less than Rs.5 lakh, and Rs.5,000 if the income is more than Rs.5 lakh. The interest will be 1% per month on the unpaid tax from the due date till the return is filed. 31 Oct 2025 For individuals and professionals requiring audit for financial year 2024-25 (assessment year 2025-26). If you miss it... You can file a belated tax return till 31 December 2025, though you will be charged the same penalty as that for breaching the 15 September deadline. In addition to this, the assessing officer can levy a penalty of `1.5 lakh or 0.5% of turnover, whichever is lower. 31 Dec 2025 Last date to file revised or belated tax return if you miss the 15 September deadline. If you miss it... You can file an updated return till four years from the end of the relevant assessment year. However, you will have to pay an additional tax at the rate of 25%, 50%, 60% and 70% of the tax for the first, second, third and fourth years, respectively, depending on the year in which you file. 'In case of wilful default, even prosecution proceedings may be initiated under Section 276CC. There is a provision of imprisonment of six months to seven years with a fine, where tax evaded is more than Rs.25 lakh, and from three months to two years with a fine, in other cases,' says the tax return has been filed after the due date (15 September this year), you can be penalised up to Rs.5,000 under Section 234F (see 'Don't miss these tax filing deadlines'). This is besides the 1% per month interest you will be levied for unpaid tax. As far as updated returns are concerned, you can file till four years after the relevant assessment year, as per the change announced in last year's Budget. Who needs to file income tax returns? Find out the conditions under which you are exempted from filing returns and when it's compulsory to do so. You're exempt from filing if.. Your annual income before deductions and exemptions is… Less than Rs.2.5 lakh in old tax regime. Less than Rs.3 lakh in old tax regime if you are between 60 and 80. Less than Rs.5 lakh in old tax regime if you are over 80. Less than Rs.3 lakh in new tax regime. You are over 75, with only income being pension and interest from the same bank, and the bank has deducted tax. Even if you're exempt,file a return if… You have a tax refund due. You have a TDS/ TCS refund due. You need to apply for a loan, passport or visa. You want to carry forward losses from business/ profession or under capital gains head in the future. Even if you're exempt, it is mandatory to file a return if … You have a foreign income or hold foreign assets. You are a company or a firm, regardless of profit or loss. You have deposited Rs.50 lakh or more in savings account, or Rs.1 crore or more in current account. You have spent Rs.2 lakh or more on foreign travel. Your electricity consumption is over Rs.1 lakh. Your aggregate TDS/ TCS is more than Rs.25,000 (Rs.50,000 for senior citizens). You have a business turnover of over Rs.60 lakh, or professional turnover of more than Rs.10 lakh. The most likely mistakes this year could be related to the changes introduced by the Budget 2024. There are not only structural changes in the ITR forms that require compliance by taxpayers (see 'Comply with these Budget 2024 changes'), but also deductions and capital gain taxation changes that could lead to calculation errors.'Removal of indexation from long-term capital gain calculation is the biggest change from Budget 2024, for which the cut-off date is 23 July 2024,' says Shubham Agrawal, Senior Taxation Adviser, TaxFile. in. Both the capital gain taxation rates and holding periods have been rationalised (see 'Capital gain rates…'). While long-term gains from listed shares and equity funds will be taxed at 12.5% without indexation, short-term gains will be taxed at 20%, up from 15% the capital gains schedule has also been modified to report gains separately for periods before and on or after 23 July 2024. What this means is that taxpayers will now have to bifurcate their gains based on whether the transfer occurred before or after this other changes, remember that while using ITR forms 1, 2, 3 and 5, you can only use your Aadhaar number, not the Aadhaar enrolment ID. 'Besides, the new tax regime has become the default tax regime, and if you wish to opt for the old tax regime, you will have to explicitly choose it by filing Form 10-IEA before filing your ITR,' says mistake many people make before filing their tax returns is not checking the Annual Information Statement (AIS) and Form 26AS, which provide a summary of all their transactions and taxes.'Form 26AS is a tax credit statement that primarily serves as a summary of taxes credited against a taxpayer's PAN,' says Raj Lakhotia, Managing Partner, LABH & Associates. It includes details such as tax deducted at source (TDS), tax collected at source (TCS), advance tax and self-assessment tax payments, refunds issued by the Income Tax Department, and details of specified high-value transactions like property purchases, mutual fund investments, AIS, on the other hand, is more comprehensive and reflects both the reported value and that accepted or modified by the taxpayer, enabling users to verify the information and submit feedback, in case of discrepancies. This information includes interest income from savings accounts, fixed deposits and recurring deposits, dividend income, securities transactions like purchase and sale of shares, mutual funds, rent received, foreign remittances, high-value credit card spends, among reconcile the data, first compare the information in AIS and Form 26AS with your own financial statements, Form 16, bank statements, and investment proofs. 'If there are any mismatches (TDS not reflected, incorrect income figures), contact the deductor (employer, bank) to get it rectified,' says Jethani.'Reconciliation of both with the ITR helps avoid discrepancies, prevents underreporting or duplicate claims, facilitates faster processing of returns and refunds, and avoids tax notices,' says you fail to list all your incomes by mistake or intentionally, it can prove very expensive. 'Since most filings are based on AIS and TIS, people only refer to these, but there is the risk of missing out incomes on which TDS is not deducted, such as interest on sovereign gold bonds or rent for residential property if it is less than Rs.50,000 a month,' says Agrawal.'It's also easy to miss out on interest from savings accounts, fixed and recurring deposits, crypto, or freelance, rental and foreign incomes,' says Sudhir Kaushik, Founder & CEO, frequently overlook categories of income that are accrued but not received, or not actively tracked, such as capital gains from sale or redemption of shares, mutual funds, real estate, or other capital assets, and dividend income, especially when credited without TDS or reinvested,' says income that is typically not included is the one derived from assets transferred to the spouse without consideration, or income from minor children. 'Also, in case of sale of jointly owned property with spouse but funded only by one, people report capital gains proportionately in both the returns, rather than in the return of the spouse who funded it,' says Kumar. After Budget 2024 Capital gain rates & holding periods have changedDepending on whether it is underreporting or misreporting of income, it can result in a penalty of 50-200% of the due tax, besides interest liability and even risk of prosecution in extreme exempt income is not a part of your total taxable income, it is mandatory to report it under the appropriate section (Schedule EI). 'Non-reporting of such income may lead to a defective return, and if the defect is not rectified within the prescribed timeline,the return may be treated as invalid,' says Lakhotia. Agrees Kumar: 'With automated processes in place, it is likely to get noticed. This may result in waste of time and energy responding to notices and giving explanations why it was missed.'Exempt income that needs to be reported includes agricultural income; share of profit from a partnership firm; interest income from Public Provident Fund (PPF); interest income from tax-free bonds; gratuity and leave encashment (up to specified limits under Section 10(10AA)); maturity proceeds of life insurance policies (subject to conditions under Section 10(10D)); exempt portion of house rent allowance (HRA) under Section 10(13A); exempt portion of leave travel allowance/concession (LTA/LTC) under Section 10(5); commuted pension (up to specified limits under Section 10(10A)); Sukanya Samriddhi proceeds and interest earned; interest and maturity proceeds from Employees' Provident Fund (EPF), subject to specified conditions; and income of a minor child clubbed with the parent (exempt up to specified limit under Section 10(32)).When people change jobs within a financial year, they are likely to make the following accounting mistakes. Claiming basic exemption & deduction twice: 'Both new and previous employers may independently apply basic exemption limit, standard deduction, and deductions under Chapter VI-A, especially if investment declarations have been submitted twice, resulting in double claiming of tax benefits and lower TDS deducted,' says Lakhotia. 'Where such tax liability, net of TDS/TCS, is more than Rs.10,000, the employee will end up paying interest under Sections 234B and 234C if he doesn't pay advance tax,' cautions Kumar. 'Also, irrespective of the number of employers during the year, the standard deduction is capped at Rs.75,000 in the new regime,' says Agrawal. Not consolidating Form 16s, incomes: Obtain Form 16 from all employers and consolidate income and tax details as it can lead to incomplete income reporting and inaccuracies in TDS credits. 'Ensure all income, including any arrears, bonuses, or final settlement from the previous employer, is included,' says Jethani. Not reconciling Form 16 & Form 26AS : Failure to check the TDS details in Form 16 and those reflected in Form 26AS may lead to missing mismatches, which can result in delays or tax notices. Ignoring taxability of gratuity, leave encashment: 'The other common mistake is claiming exemption for gratuity or leave encashment exceeding the maximum amount specified in the Act if the employee does not keep track of claims in the previous employments,' says Kumar. Failure to account for these can cause errors in tax liability computation. Last year, the Income Tax Department uncovered rent receipts worth Rs.1 crore by a single employee and bore down on the company employees who had used the same PAN multiple times to claim HRA exemption. Don't make the mistake of conducting fraud as it can result in hefty penalties, including a fine of up to 200% of the misreported exemption is available under the old tax regime to salaried employees as part of their salary structure. To claim it, you need to provide documentary proof, including a formal rent agreement, rent receipts and landlord's PAN (if annual rent exceeds Rs.1 lakh), to the employer, besides actually staying in a rented usage of fake or incorrect PAN details can be easily detected via PAN verification systems, while any mismatch in the rent paid by you and that received by the landlord is bound to get a tax notice. Another red flag for the tax authorites is a mismatch in the rental address and the one linked to Aadhaar or other official an employee fails to declare or submit proof to the employer, he can still claim HRA exemption at the time of filing returns under Section 10(13A). 'However, tax authorities could audit the return to verify the claim. So, preserve supporting documents, such as rent agreement, rent receipts, bank statements reflecting the payment of rent, and where the rent paid exceeds Rs.50,000 a month, evidence of tax deducted at source by the employee,' says Kumar.'You cannot claim exemption if you stay in your own house or with parents, unless you pay them rent with a valid formal agreement and genuine bank transactions for rent transfers,' says the taxpayer pays rent but doesn't receive HRA from employer, a separate deduction under Section 80GG is available up to Rs.5,000 a month, but is subject to You have no formal rent agreement. You have no proof of bank transactions. Incorrect PAN of landlord (for over Rs.1 lakh a year rent). Rental address is not authentic. Your HRA claim differs from that of employer. How it's caught It may not always be mandatory, but its absence can raise suspicion. Tax department can check bank statements. It's easily caught through PAN verification. Mismatch with address in Aadhaar card or other official records can catch it. Employer submits details of HRA exemption in Form 16. The following alterations need to be incorporated by taxpayers in their returns this year. Capital gains & IT formsTaxpayers who have long-term capital gains of up to Rs.1.25 lakh and are not carrying forward capital losses can now file using simpler ITR 1 form, instead of the previously mandated complex ITR 2 or ITR 3 forms. This is after the increase in LTCG exemption limit on listed equity shares and equity-oriented mutual funds from Rs.1 lakh to Rs.1.25 lakh in a financial year. Capital gain split From 23 July 2024, the LTCG on listed equity shares and equity-oriented mutual funds will be taxed at 12.5% without indexation, from 10% earlier, while the short-term capital gains (STCG) will be taxed at 20%, from the earlier 15%. Taxpayers will have to bifurcate their gains based on whether the transfer occurred before or after this date. Buyback as dividend Buying back of shares on or after 1 October 2024 will be considered as dividend in the hands of shareholders and should be reported as 'Income from other sources', instead of capital gains. It will be taxed at applicable slab rate without any deduction of the cost of acquisition. TDS schedule This year, you will need to mention the TDS section under which tax was deducted for income in 2024-25 if you are using forms ITR 1, 2, 3, or 5. Actual Aadhaar You can file the tax returns this year for forms ITR 1, 2, 3 and 5 using only the actual Aadhaar number, not the Aadhaar enrolment ID. Updated return timeline The timeline for filing updated returns (ITR-U) has been extended from 24 months to 48 months. Asset-liability threshold The threshold for reporting assets and liabilities in the tax return has been increased from Rs.50 lakh earlier to Rs.1 crore now. Disability certificate For disabled individuals, taxpayers could earlier claim deduction under Section 80DD or Section 80U in the old regime by quoting Form 10-IA. Now, they will have to give acknowledgement number of disability certificates as well.
Time of India
a day ago
- Health
- Time of India
Think Rs 5 lakh health insurance is enough? Here's why only a Rs 1 crore health customised cover is likely to be sufficient
Hiking your insurance cover from Rs 1 lakh to Rs 1 crore does not imply that your premiums are also going to jump up significantly. Medical inflation in India has consistently hovered at 13-14% annually—double the pace of general inflation and far beyond the wage growth for most Indians. Some years, it has surged as high as 20%. This is not a spike; it's a trend. Having a minimum health cover of at least Rs 1 crore is essential in today's day and age. Tired of too many ads? Remove Ads Old playbook won't work Tired of too many ads? Remove Ads Customised products Tired of too many ads? Remove Ads (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) In India's fast-changing healthcare landscape, medical costs are rising faster than income, inflation, and expectations. While advanced treatments are improving, they also bring growing financial pressure on individuals and families unprepared for Indian households today are well aware of health risks from lifestyle diseases, the environment, and longer lifespans. Yet, financial preparedness, especially via health insurance , still treat insurance premiums as a commodity cost. We search for the lowest number, equating affordability with adequacy. In reality, the cheapest policy may be the most expensive mistake. Cracking the premium code in 2025 demands a rethink of what health insurance means, what it should deliver, and how we must align it with the new economics of look at the numbers. Over the past decade, the cost of hospitalisation, advanced procedures, and even routine diagnostics has climbed dramatically. Heart surgeries, cancer treatments, and critical care interventions now routinely cross the Rs.30-40 lakh mark. Cataract surgery, once considered minor, can now cost over 1 lakh in a top are indicators of a structural shift in healthcare pricing , driven by better medical technology, global standards of care, and increasing demand. At the same time, medical inflation in India has consistently hovered at 13-14% annually—double the pace of general inflation and far beyond the wage growth for most Indians. Some years, it has surged as high as 20%. This is not a spike; it's a the past decade, the cost of major medical procedures has surged. A kidney transplant that cost around Rs.5 lakh in 2013 now exceeds Rs.18 lakh. A heart transplant, in some cases, can cost up to Rs.34 lakh. In this context, insurance covers of Rs.3-5 lakh are no longer adequate; they reflect an outdated cost structure. If we continue to treat premiums as just another line item in our budgets, rather than a bulwark against financial distress , we will continue to be caught a Rs.1 crore health cover isn't a luxury; it's the new normal. It reflects the real cost of care today and anticipates the increasing complexity of medical interventions tomorrow. It is not just about critical illness. It's about diagnostics, consultations, follow-ups, mental health services, pre- and post-hospitalisation costs, and the growing expectation of quality care across every touchpoint. The comprehensive nature of healthcare today demands comprehensive financial coverage— and a rebalancing of what consumers consider 'adequate.'The good news is that increasing your health cover from Rs.10 lakh to Rs.1 crore doesn't mean your premium will go up 10 times. For a young couple in their mid-30s, a Rs.1 crore plan can cost around Rs.2,000 to Rs.2,500 per month— only about 10-15% more than a Rs.10 lakh policy, but with much stronger urgency of higher coverage is also reflected in how claim trends are shifting. In 2024-25, heart-related claims made up nearly 20% of total health insurance claims , up from around 10% five years earlier. Also, the average claim size for such cases has surged from Rs.4-5 lakh in 2019-20 to Rs.14-17 lakh the industry is evolving to match the shift. Insurers are designing more inclusive products, offering higher coverage limits, cashless treatments across wider hospital networks, and support services that extend well beyond hospitalisation. The market is responding not just to rising claims but to changing consumer alone are not enough. There is a growing responsibility for all stakeholders to reframe the consumers' approach to insurance. Premiums should be viewed as investments in resilience. Higher coverage should be encouraged. The long-term value of insurance must be placed front and centre, not just its annual price also a macroeconomic angle to this conversation. A financially unprepared population facing unpredictable health costs creates downstream effects: reduced productivity, increased household debt, and rising pressure on public health infrastructure. In a country where out-of-pocket healthcare spending still forms a major share of total expenditure, underinsurance is not just a personal risk; it's a systemic one. By helping more people access meaningful protection, we are safeguarding households and reducing the social costs of delayed or inadequate the premium code, then, is not about finding the lowest number. It's about asking the right questions: Will this coverage hold up five years from now? Can this policy support me through a complex medical episode? Does it enable me to act early and decisively when a health issue arises?India is on the cusp of a healthcare transformation, but for it to be inclusive, we must build financial resilience into the very design of that journey. That begins by treating the premium not as a price, but as a promise.
Time of India
a day ago
- Business
- Time of India
Which ITR form you should use to file your income tax return depends on your income sources and taxpayer category: Here's how to pick right
Choosing the right ITR form is the first and most crucial step, as a wrong form can lead to defective returns, penalties, or refund delays. The Income Tax Department has notified the updated forms for Assessment Year 2025-26 . Here's a quick guide to help you identify the correct form based on your income type and tax situation . ITR 1 (Sahaj) For salaried individuals with simple income YOU CAN USE THIS IF You are a resident individual (not HUF or NRI/RNOR). Your total income is less than or equal to Rs.50 lakh. Your income includes: Salary or pension. One house property (no carry-forward loss). Interest or other sources (excluding lottery/racehorses). Agricultural income up to Rs.5,000. Capital gains up to Rs.1.25 lakh from shares/mutual funds (Section 112A, new from FY 2024-25). No carry-forward loss allowed. You cannot use this if: You're a director in a company. Hold ESOP/unlisted shares. Profit from virtual digital assets (crypto). Have foreign assets or income. Own more than one house. Have business or professional income. Have capital losses to carry forward. New for this year Live Events You can now declare up to Rs.1.25 lakh in LTCG from shares or equity mutual funds in ITR 1 without needing ITR 2 or ITR 3. ITR 2 For investors, NRIs, and those with capital gains or multiple properties YOU CAN USE THIS IF You are an individual or HUF. Your income includes: Salary/pension. Income from multiple house properties. Capital gains (any amount). Foreign income or assets. Agricultural income > Rs.5,000. You're an RNOR/NRI. You're a director or hold unlisted shares. You have clubbing of income (spouse's income). You cannot use this if: You have income from business or profession. New feature: The Excel utility now supports filing revised returns under Section 139(8A). ITR 3 For business owners, freelancers, and partners in firms YOU MUST USE THIS IF You are an individual or HUF with: Income from business or profession (proprietorship). You are a partner in a firm (not an LLP). Income includes capital gains (any amount or with carry-forward loss). You hold unlisted equity shares. Income/loss from futures & options. You also earn salary, rent, or other income along with business income. Use this if you cannot file ITR 1, ITR 2, or ITR 4 due to your income mix. If you're opting out of the new tax regime, Form 10-IEA confirmation is required ITR 4 (Sugam) For small businesses and professionals under presumptive tax YOU CAN USE THIS IF You are a resident individual, HUF, or partnership firm (not LLP). Your total income is less than or equal to Rs.50 lakh. You earn from: Presumptives (Section 44AD or 44AE). Presumptiven (Section 44ADA). One house property. Salary/pension. Other sources (excluding lottery/racehorses). LTCG under Section 112A: Rs.1.25 lakh (no carry-forward loss). You cannot use this if: Income is > Rs.50 lakh. You have foreign assets or income. You are an RNOR or NRI. You're a company director or hold unlisted equity. Your business turnover is > Rs.2 crore. You have capital losses to carry forward. Freelancer tip Use ITR 4 only if you're under presumptive taxation (44ADA). Otherwise, file using ITR 3. ITR 5 For LLPs, AOPs, co-operative societies, and others You can use this if you are: A partnership firm (excluding proprietorships). An LLP. Association of Persons (AOP). Body of Individuals (BOI). Estate of a deceased or insolvent person. Business trust or investment fund. Certain cooperative societies or trusts (not filing ITR 7). You cannot use this if: You are an individual, HUF, or company. You are a trust required to file ITR 7. Note If you opt out of the new tax regime, submit Form 10-IEA Don't forget... If you've received ESOPs or hold startup shares not listed on stock exchanges, you own unlisted equity even if you haven't sold it. This disqualifies you from using ITR 1 or ITR 4. Even if your salary is under Rs.50 lakh, having capital gains above Rs. 1.25 lakh or owning more than one property requires ITR 2. Using ITR 1 here can lead to a defective return notice. Only ITR 2 or ITR 3 lets you carry forward capital losses to offset future gains. If you use ITR 1/4, these losses lapse, potentially costing you thousands in future tax savings. If you've returned to India recently after living abroad, you may be an RNOR, not a regular resident. You are an RNOR if you were an NRI in nine out of the last 10 years or stayed in India for 729 days or less in the last seven years. If you're a freelancer, small business owner, or professional with modest income, you can opt for presumptive taxation to simplify filing. Under this, you declare a fixed percentage of your total receipts as income. There's no need to maintain detailed books or get audited. Use this only if your turnover is within limits (Rs.2 crore for business, Rs.50 lakh for profession). If you're salaried and traded in F&O, you must file ITR 3. F&O income is treated as business income, not capital gains, even if it's just a side activity.
