Latest news with #26AS
India Today
12-06-2025
- Business
- India Today
Got an income tax notice? Don't panic, here's how to deal with it
Filing your income tax return might feel like ticking off the last task on your to-do list, but it's not always the end of your tax journey. For many honest taxpayers, the unexpected arrival of an income tax notice in their inbox can trigger before panic sets in, here's the good news! Most of these notices are routine and manageable, provided you respond appropriately and on Today spoke to CA (Dr) Suresh Surana to decode what these notices really mean, why they're sent, and what you should do if one lands your DO TAX NOTICES ARRIVE? In today's data-driven tax system, the chances of receiving a notice have increased, not because you're doing something wrong, but because the tax department now has greater access to your financial footprint. CA Surana explained, 'With enhanced data analytics, information integration (via AIS, TIS, 26AS), and increased reporting obligations, the issuance of notices has become both structured and data-driven.'The tax system tracks your financial transactions, like your salary, bank interest, stock trades, and mutual fund investments. If something doesn't match or seems off, a notice might be sent to you for this isn't necessarily a sign of wrongdoing. Often, the notice is just a formal nudge asking for more information, missing documents, or explaining a MOST COMMON NOTICES – AND WHAT THEY MEANadvertisementSection 143(1): Intimation After Return ProcessingThis is one of the most frequently issued notices and is sent after your return has been processed. It compares your declared income and deductions with the department's own data. If everything matches, no action is needed. But if there's a mismatch, like incorrect TDS or deductions, you may be asked to pay more tax or may receive a to CA (Dr) Suresh Surana, 'This is a preliminary assessment, not a final order. You still have time to revise your return under Section 139(5) if needed.'Section 142(1): Inquiry Before AssessmentThis is more of an information request. You may receive it if you haven't filed your return, or if the tax officer needs further documents to complete your assessment. This can include income details, bank records, or rent receipts.'Non-compliance can lead to Best Judgement Assessment under Section 144 and may attract penalties or prosecution,' Surana 139(9): Defective ReturnThis notice appears when your return is found to have issues, like using the wrong ITR form, leaving out income details, or missing tax payment information. You're usually given 15 days to fix it.'If not corrected in time, the return is treated as invalid, with consequences as if no return was filed at all,' Surana explained. This could mean losing out on exemptions or carry-forward 245: Adjustment Against Tax DuesIf you're due for a refund but still owe tax from previous years, the department can adjust the two. A notice under Section 245 is issued to inform you about this, giving you a chance to accept or dispute the adjustment.'This adjustment can only be made after a written intimation, and the taxpayer usually has 21 days to respond,' Surana noted. Common reasons for defective returns include incorrect ITR form used, incomplete information, and non-disclosure of tax payment details, he 148: Income Escaping AssessmentThis notice is more serious. It's sent when the department believes that you've failed to disclose certain income in past returns. The Assessing Officer must have credible evidence for reopening your case. You'll be asked to file a fresh return for the year in question, and possibly explain the source of the income in noted that reassessments are governed by Sections 147 to 153 and can involve recalculations of losses or SHOULD YOU RESPOND TO A TAX NOTICE?The first rule is simple: do not ignore it. Every notice carries a response deadline. Missing it can lead to penalties, disallowance of claims, or even reopening of your by logging into the income tax portal and reading the notice carefully. Check under which section it has been issued and verify its authenticity using the Document Identification Number (DIN). If it's a valid notice, gather all supporting documents, like ITR copies, Form 16, salary slips, bank statements, investment proofs, and submit a clear and complete response through the e-filing advised, "Taxpayers need to submit a comprehensive and fact-based response via the income tax e-filing portal in accordance with the requirements set out in the notice."Further, he added, 'Once the response is submitted, retain copies of your reply and acknowledgement receipts. Track the status on the portal and be alert to further updates from the department.'If you're not satisfied with the outcome, don't hesitate to explore remedies. These include seeking a rectification under Section 154, filing an appeal with the Commissioner (Appeals), or requesting a revision under Section 264, depending on your other words, receiving a tax notice isn't the end of the world. In most cases, it's just the department doing its job, cross-checking information and ensuring everything adds up. Staying calm, reading the notice carefully, and responding with the right documents on time can help you resolve it if you're ever in doubt, don't try to guess your way through it. Reach out to a qualified tax professional who can guide you through the Watch
Mint
09-06-2025
- Business
- Mint
Income tax calculator: This is how you can use it to compute your tax liability
As a taxpayer, it is recommended to use an income tax (I-T) calculator to ascertain your tax liability. However, before you use income tax calculator, these are the key steps that you need to follow: At the outset, you need to enter the PAN and your name. Then you enter the assessment year and the taxpayer category i.e., whether you are an individual, HUF or a firm. Then you must enter the residential status: resident or non-resident. Now the system will ask you to enter the total taxable income as per the new tax regime. Then there is space for allowances/ exemptions that are allowed only under the old tax regime such as 10(5), 10(13A) etc. Then you need to enter the VIA deductions allowed under the old tax regime such as 80D, 80C, 32(1) and others. Finally, you will arrive at total taxable income as per the old tax regime. This is also quite similar to a basic calculator. As mentioned above, you have to enter the PAN, name of the taxpayer, updated return under 139(8A), other than updated return. This is followed by the basic details such as choosing the tax regime, residential status, age, and date of submission. Now you need to enter your income under different heads such as under the head salaries, house property, capital gains, business or profession, and other sources. Salaried taxpayers need these documents at the time of filing of income tax return: form 16, form 26AS and AIS (annual information statement). Form 16 is a TDS certificate issued by an employer to an employee. Form 26AS is a consolidated Annual Information Statement for a particular Financial Year and AIS is a comprehensive view of information for a taxpayer displayed in Form 26AS. Visit here for all personal finance updates
India Today
03-06-2025
- Business
- India Today
7 common mistakes you must avoid while filing ITR in 2025
7 Common Mistakes You Must Avoid While Filing ITR In 2025 2 Jun, 2025 Credit: Getty The ITR deadline is now September 15, 2025. Missing this deadline can lead to a late fee of up to Rs 5,000, depending on how late you file. Missing The ITR Deadline Ensure your bank account is pre-validated, or your refund could be held up and lead to complications. Not Pre-validating Your Bank Account Filing the wrong ITR form may delay processing or lead to rejection of your income tax return. Choosing The Wrong ITR Form Report all income—FD interest, rent, dividends, capital gains—to avoid tax notices or penalties later. Forgetting To Report All Income Always match your ITR with Form 26AS and AIS before filing to avoid mismatches and refund delays. Not Checking Form 26AS & AIS Filing fake rent receipts for HRA or false deduction claims may lead to penalties and legal action. Claiming Fake Deductions Filing your ITR is not the final step, you must also verify it. If not verified, your return will be treated as invalid. Skipping ITR Verification
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Business Standard
24-04-2025
- Business
- Business Standard
Watches, art, bags, sportswear over Rs 10 lakh? Say hello to 1% TCS
Luxury shoppers, take note: If you're eyeing that limited-edition wristwatch, high-end handbag, or luxury yacht, be prepared to pay a little extra—not as a cost, but as a tax trail. Starting April 22, 2025, the Income Tax Department will levy a 1% Tax Collected at Source (TCS) on high-value luxury goods priced above Rs 10 lakh. "The much-anticipated notification on TCS on luxury goods brings clarity on scope and thresholds. Effective April 22, 2025, the levy applies to notified products exceeding ₹10 lakh in value with tax applicable on the full transaction amount in excess of Rs 10 lakh.. This move is a strategic step towards enhancing tax transparency and tracking high-value consumption trends, a move that aligns with global trends in tax surveillance and tax transparency," said Munjal Almoula, Head of Tax, BDO India. This move is part of the government's larger effort to trace big-ticket spending, widen the tax base, and bring greater transparency to luxury purchases. According to the notification issued on April 22, 2025, the following luxury items will now attract 1% TCS if they are sold for ₹10 lakh or more: Luxury handbags Wrist watches Footwear and high-end sportswear Designer sunglasses Art pieces (paintings, sculptures, antiques) Collectibles (coins, stamps) Yachts, helicopters Race or polo horses Home theatre systems Already, motor vehicles priced above Rs 10 lakh have been under the TCS net since the beginning of 2025. How Does TCS Work? Collected by the seller at the time of purchase Charged at 1% of the sale price (on items above Rs 10 lakh) Adjusted against your total income tax at the time of filing returns Requires PAN submission at the time of transaction Example: Buying a luxury handbag worth Rs 12 lakh? The seller will collect Rs 12,000 (1%) as TCS, which will be credited against your total tax liability when you file your income tax return. Why this matters While TCS doesn't increase your tax burden, it helps the government keep track of high-value discretionary purchases. The goal is to create a digital footprint of expensive buys and encourage people to declare their real financial status. "The notification operationalises the government's intent to monitor high-value discretionary spending and improve audit trails in the luxury sector,' said Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP. What This Means for Buyers Be ready for more KYC requirements at luxury outlets Ensure your PAN details are updated TCS will be visible in your Form 26AS (tax credit statement) Keep purchase receipts for tax filing reference This rule doesn't change your actual tax liability—it just brings luxury purchases under the tax department's radar. It's part of the government's effort to formalise the economy and ensure financial transparency, especially in sectors where cash transactions and unreported income have been common.
