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Time of India
a day ago
- General
- Time of India
1,408 traffic violators stopped in their tracks
traffic violations road safety reckless driving Traffic West division cracks down on violators: Rs.7.38 lakh in fines in 1 dayThe Traffic Police of the West Division launched a special operation targeting various, resulting in the registration of 1,408 cases and the collection of Rs.7,38,700 in fines, on Monday. The crackdown aimed at curbing dangerous road behaviour such as triple riding, driving against one-way routes, violating no-entry zones, and unauthorised to the data released, a total of 45 cases were booked for triple riding, resulting in fines of Rs.22,500. Violations involving driving against one-way roads led to 114 cases and penalties amounting to Rs.58,500. The most common offence was parking violations across all categories, with 240 cases registered and fines totaling Rs.1,36,400. Meanwhile, 210 cases were filed for entering no-entry zones, collecting Rs.1,05,500 in fines. In addition to these, 795 cases were booked under other traffic violations, contributing to a significant Rs.4,16,800 in drivers and riders caught during the crackdown were educated about the importance of following traffic rules to ensurefor all. Authorities have confirmed that such special operations will continue in the coming days, reinforcing strict compliance and reducing accidents caused byA 19-year-old was booked for reckless driving after he was caught performing a wheelie on a public road in broad daylight on Old Mysore Road within the limits of the Magadi Road Traffic Police part of a special operation launched on the same day to curb dangerous driving, a team from the West Division was patrolling the area when they spotted the youth, identified as Janakiram, riding a scooter with its front wheel lifted off the ground, a stunt commonly known as police promptly intercepted the vehicle and seized it on the spot. Following a preliminary investigation, an FIR was registered against Janakiram under Section 281 of the Bharatiya Nyaya Sanhita (BNS) for endangering human life, Section 129 of the Indian Motor Vehicles (IMV) Act for not wearing protective headgear, and Section 189 of the IPC along with 177 for furnishing false information.A high-speed crash on the upper side of the BGS flyover claimed two lives and left two others seriously injured In the early hours of Tuesday. The incident occurred around 1.30 am near the Ganesh Temple when two motorcycles to police, Mani and his friend Akash were riding a bike at high speed when they lost control and crashed into an electric two-wheeler ahead of them. The impact threw both riders off the bike. Mani sustained a leg injury, while Akash suffered severe injuries to his face, head, and legs. He was later declared dead at Victoria electric two-wheeler was being ridden by Afzal and Qasim, who also fell due to the collision. Afzal dead, Qasim critical after the bike accident.
Economic Times
3 days 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
3 days 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.
Business Standard
15-05-2025
- Business
- Business Standard
Volumes soar at eClerx Services Ltd counter
eClerx Services Ltd clocked volume of 18590 shares by 10:47 IST on BSE, a 13.18 times surge over two-week average daily volume of 1410 shares Ramkrishna Forgings Ltd, Linde India Ltd, Shree Cement Ltd, Jubilant Foodworks Ltd are among the other stocks to see a surge in volumes on BSE today, 15 May 2025. eClerx Services Ltd clocked volume of 18590 shares by 10:47 IST on BSE, a 13.18 times surge over two-week average daily volume of 1410 shares. The stock gained 9.18% to Rs.3,000.00. Volumes stood at 1658 shares in the last session. Ramkrishna Forgings Ltd saw volume of 4.03 lakh shares by 10:47 IST on BSE, a 9.02 fold spurt over two-week average daily volume of 44655 shares. The stock increased 7.19% to Rs.625.45. Volumes stood at 48686 shares in the last session. Linde India Ltd witnessed volume of 9726 shares by 10:47 IST on BSE, a 6.36 times surge over two-week average daily volume of 1529 shares. The stock increased 4.41% to Rs.7,158.25. Volumes stood at 4495 shares in the last session. Shree Cement Ltd recorded volume of 2626 shares by 10:47 IST on BSE, a 6.35 times surge over two-week average daily volume of 413 shares. The stock gained 3.17% to Rs.31,603.10. Volumes stood at 1860 shares in the last session. Jubilant Foodworks Ltd witnessed volume of 1.41 lakh shares by 10:47 IST on BSE, a 5.06 times surge over two-week average daily volume of 27925 shares. The stock dropped 1.82% to Rs.680.90. Volumes stood at 54095 shares in the last session.
Mint
14-05-2025
- Business
- Mint
SBI, Bajaj Finance to Infosys: These 10 dividend stocks to trade ex-date soon. Check details
Dividend Stocks 2025: SBI, Bajaj Finance to Infosys are among the 10 dividend stocks that will trade ex-date soon. Others include Indian Energy Exchange, GM Breweries Ltd, LTIMindtree Ltd , Sula Vineyards Ltd, Havells India Ltd , Archean Chemical Industries Ltd and Great Eastern Shipping Company Ltd State Bank Of India (SBI) - Central Board of the Bank, at its meeting held on 3 May 2025 had declared a dividend of ₹ 15.90 per equity share of ₹ 1/- each fully paid up, translating into 1590% dividend considering the dividend announced and the face value of the SBI share, for the year ended 31.03.2025. The record date for determining the eligibility of members entitled to receive dividend stands on Friday, 16.05.2025 Bajaj Finance- Bajaj Finance had recommended Final Dividend on equity shares at the rate of Rs. 44 per share of face value of Rs. 2 each for the financial year 31 March 2025. This translated in to 2200% dividend considering the dividend announced and the face value of the Bajaj Finance share price. The record for the dividend had been fixed as 30 May 2025. Infosys- Infosys had recommended a final dividend of ₹ 22/- per equity share for the financial year ended March 31, 2025. The record date for the purpose of the Annual General Meeting and payment of final dividend as per Infosys stands on May 30, 2025 Indian Energy Exchange Ltd- final dividend of Rs. 1.50/- per equity share having a face value of Re. 1/-( Rupee One) each fully paid-up , had been declared by Indian Energy Exchange or IEX for the financial year ended March 31, 2025. The record date stands on 16 May 2025. GM Breweries Ltd- GM Breweries had recommended final dividend of . Rs.7,5/- per equity share of Rs.10 each for FY25 with record date on Thursday 22 May 2025. LTIMindtree Ltd - A final dividend of Rs. 45/- per equity share of Re. 1 each, for FY25 by LTIMindtree record date for which is Friday, May 23, 2025 Sula Vineyards Ltd- Sula Recommended final dividend of Rs. 3.60 per share on the equity shares of face value of Rs.2/- each for the financial year ended 31st March 2025 , the record date for which stands on Friday, 23'rd May 2025 Havells India Ltd- Havells had recommended Final Dividend of ₹ 6.00 per Equity Share having face value of Re. 1/- each, the record date for which stands on 25 May 2025 Archean Chemical Industries Ltd- Archean had recommended a final dividend of Re. 3.00/- per equity share of Rs. 2/- each (150% considering face value), record date for which stands on Friday, 26 May 2025 Great Eastern Shipping Company Ltd- The company had declared Declared an interim dividend of Rs. 5.40 per share to the equity shareholders of the Great Eastern Shipping Company, record date for which stands on 15 May 2025 Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
