Latest news with #StatementofFinancialTransactions
Time of India
a day ago
- Business
- Time of India
ITR e-filing FY 2024-25: What is the benefit of pre-filled ITR forms on the income tax portal? Top points
ITR filing FY 2024-25: Pre-filling of ITR forms has several advantages. (AI image) Income Tax Return Filing FY 2024-25: The Income Tax Department has been aiming to make the e-filing of income tax returns easier for taxpayers, and one such step in that direction is pre-filled ITR forms. If you have been filing tax returns, you would know that the ITR forms have been pre-filed on the tax portal for some years now. With pre-filled ITR forms, the Income Tax Department aims to enhance accuracy, encourage timely filing of income tax returns and reduce compliance burden on taxpayers. The process of filing electronic Income-tax Return forms by taxpayers has evolved over a period of time and we have seen that every year Central Board of Direct Taxes (CBDT) introduces new features in the process to enhance user experience, reduce revenue leakage and ensure full compliance. 'The Government has strived to achieve a mature ITR filing process wherein all the information is accurately pre-filled in the form and taxpayers' role is limited to verification of the information. In order to achieve this level of automation, the CBDT has invested in the technology upgradation, mandated various agencies to share data with CBDT which is filtered and used to prepare a pre-filled ITR,' says Preeti Sharma, Partner, Tax & Regulatory Services, BDO India LLP. Also Read | ITR filing FY 2024-25: Do you need to file your income tax return if TDS has been deducted? Explained Preeti Sharma explains that till last year, your pre-filled ITR form was automatically capturing the following information: Personal Information, such as name, PAN, date of birth, address, etc. Income details, which have been reported by registered persons in India under a Statement of Financial Transactions such as Salary, from Form-16 submitted by employers Interest income, from Banks & Financial Institutions Reports Dividend income, from Companies & Mutual Funds Reports Tax payment details (TDS, TCS and advance tax) The IT Department can also track sale and purchase of land or immovable properties, with the tax deduction or collection requirements that have been introduced in India recently. The CBDT has already launched online utility for ITR-1 (Sahaj - Available for Individuals & HUF) and ITR-4 (Available for Individuals & HUF with Presumptive Business or Professional Income) with limited enhancements. However, the new online form ITR-2, ITR-3 for Individual tax-payers is still to be launched. According to Preeti Sharman, it is likely to be more advanced with pre-filled data such as: Pre-filled Capital Gains schedule – mapping the information received from brokers & Depository Reports and scrip wise bifurcation of capital gain rather than a cumulative amount. Pre-filled Deductions tab, which have been reported by the employer. Update of all the bank account numbers already linked with your PAN and Aadhaar in the Bank's systems. This pre-filling of ITR forms has the following advantages: Minimizing human efforts and errors Full disclosure of income Easy access to past records – for comparison purpose / reporting of previous year's income / carry forward of previous year's losses Reduced litigation as any mismatch of details reported in tax return with information available with the tax department is addressed at this stage only. Pre-filled ITRs makes it easier for a taxpayers' to file ITR correctly without in-depth knowledge of taxation, thereby reducing the dependence on experts (for simple cases). Also Read | Income Tax Return e-filing: Can you keep switching between new and old tax regime every year? What taxpayers should know Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
a day ago
- Business
- Business Standard
Taxman knows more than you think: Here's why clean ITR filing matters
Some taxpayers underreport income or inflate deductions in order to save money that goes to the government. But experts warn that this is a high-stakes gamble in today's data-driven tax environment. With the Income Tax Department now armed with sophisticated tools and deep access to financial information, from your bank transactions and property deals to your stock market activity, there's little room to hide. Taxman's eyes everywhere: What the department already knows 'The Income Tax Department gets financial data from multiple channels, banks, mutual funds, employers, registrars, and more,' says Suresh Surana, charter accountant. This includes: TDS/TCS details from Form 24Q/26Q High-value transactions under the Statement of Financial Transactions (SFT) Integrated PAN-linked records from property sales, share investments, and foreign remittances Salary, rent, capital gains, and GST data through the Annual Information Statement (AIS) and Form 26AS According to Kinjal Bhuta, secretary of the Bombay Chartered Accountants' Society, the department also uses 'AI tools, regulatory data-sharing, and even social media activity' to detect suspicious patterns. Common mistakes (and misdeeds) that can trigger trouble From fudging rent receipts to ignoring side income, many taxpayers, especially salaried and self-employed, unknowingly (or knowingly) cross the line. 'False Section 80C claims, hiding freelance income, or underreporting cash sales are frequent issues,' says Sudhir Kaushik, chief executive officer of TaxSpanner. Surana adds that claiming deductions without valid proofs or routing business income through personal accounts is another red flag. Bhuta also warns against 'non-disclosure of foreign assets, ignoring bank interest, or assuming that TDS alone covers tax obligations.' Penalties can be steep, even jail time Taxpayers caught misreporting face penalties under Section 270A: 50 per cent of tax due for underreporting 200 per cent if it's deemed wilful misreporting 'In extreme cases,' says Surana, 'Section 276C can trigger prosecution with jail up to seven years if tax evasion exceeds Rs 25 lakh.' Kaushik concurs, 'With AIS and digital tracking, ignorance is no longer a valid excuse.' Staying safe: Honest filing starts with these steps Experts say the best protection is vigilance. Cross-check prefilled ITRs with your Form 16, AIS and TIS Report all income salary, capital gains, FD interest, foreign income Correct mismatches, if any, and maintain proof for deductions 'Even exempt income like agricultural earnings should be disclosed,' says Bhuta. TaxBuddy's founder, Sujit Bangar adds, 'AIS should be your checklist. If a transaction appears there, explain or report it.' As Kaushik puts it, 'Tax transparency is tighter than ever. The best strategy is to stay ahead by being accurate.'
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Business Standard
3 days ago
- Business
- Business Standard
Undisclosed crypto income: Respond to taxman's notice, file revised return
Underreporting or misreporting crypto income can lead to penalties ranging from 50 to 200%, even imprisonment of up to seven years Himali Patel Listen to This Article The Income-Tax (I-T) Department has detected widespread tax evasion involving cryptocurrencies and, according to media reports, has issued emails to thousands of defaulting taxpayers seeking transaction details. Investors must understand the tax rules governing crypto assets and respond promptly to these emails. How evasion is detected The department gathers data on cryptocurrency activity from several sources. 'Reporting agencies such as cryptocurrency exchanges and banks are obligated to report transactions through the Statement of Financial Transactions (SFT) to the tax department. Since July 1, 2022, TDS deduction is applicable on crypto transfers, which serves as a direct reporting to the I-T
India Today
09-06-2025
- Business
- India Today
High-value transactions under scanner as IT Department gets stricter
The Income Tax Department has intensified its efforts to identify individuals who spend large sums of money while potentially concealing their true income. By leveraging advanced data analytics and collaborating with financial institutions, the department closely monitors high-value transactions to tackle tax enhanced scrutiny involves partnerships with banks, post offices, co-operatives, fintech companies, and mutual funds, all of which are required to submit details of significant financial activities annually under the Statement of Financial Transactions (SFT) by May ARE HIGH-VALUE TRANSACTIONS?High-value activities under watch include large deposits, property deals, and substantial credit card payments. For instance, if you deposit or withdraw over Rs 50 lakh from a current account, spend more than Rs 30 lakh on buying or selling property, or pay over Rs 10 lakh a year through your credit card (even if it's not in cash), the department is keeping tabs. Even foreign exchange transactions and large investments in mutual funds or bonds can raise red flags if they cross the Rs 10 lakh mark. The department mandates that any transaction exceeding the defined thresholds must be measures aim to ensure that individuals who engage in such transactions also accurately declare their tighten the grip further, new rules have come into play. For instance, even if your total income is below 2.5 lakh, and you're otherwise not required to file an income tax return, you'll still have to file one if you've deposited 1 crore or more in your bank account, spent over 2 lakh on a foreign trip, or paid electricity bills totalling more than 1 lakh in a department has also introduced a tax deduction at source (TDS) on large cash withdrawals. If you take out over 1 crore in cash from your account, 2% TDS applies. For non-filers or habitual offenders, this can go up to 5%. Even those withdrawing over 20 lakh in some cases may face a 2% TDS if they haven't been filing returns measures are part of the department's broader initiative to ensure that all high-spending individuals fairly declare their income in accordance with their Reel
