Latest news with #SureshSurana
Time of India
7 days ago
- Business
- Time of India
Advance tax deadline is on Sunday June 15, can you pay it on Monday June 16 without any penal interest?
No penalty of penal interest if you pay your advance tax on June 16? Academy Empower your mind, elevate your skills ET Online January 14, 1994 circular Advance tax due dates for FY 2025-26 Due Date Advance tax payment percentage On or before June 15 15% of the net estimated tax liability On or before September 15 45% of the net estimated tax liability minus advance tax already paid On or before December 15 75% of net estimated tax minus advance tax already paid On or before March 15 100% of net estimated tax minus advance tax already paid Those who have an income tax liability of more than Rs 10,000 need to discharge this tax liability by paying advance tax through four scheduled installments. The due date for the first installment of advance tax payment for FY 2025-26 is on June 15, 2025 which is a Sunday. Since Sunday is a public holiday banks are closed, which means you can't use the bank challan or physical NEFT/IMPS method to pay advance on June 15, Saturday i.e. June 14, 2025 is also a bank holiday due to the 2nd Saturday. Hence considering these two facts many taxpayers may have doubts whether they can make this payment without any penal interest on the next working day which is June 16, 2025?The answer is yes, you may very well pay the advance tax on June 16, 2024, without any penal interest but this decision can be challenged by the tax department. This flexibility is based on a circular issued in 1994, which has still not been superseded. The circular said if the due date to deposit advance tax falls on a public holiday, then the next working day will be the to chartered accountant (Dr.) Suresh Surana, in accordance with the Circular no. 676 of January 14, 1994, one can deposit the advance tax for the first installment of FY 2025-26 on June 16, 2024 (Monday), since June 15, 2024, falls on a Sunday, without attracting any penalty or interest.S. Sriram, Partner, Lakshmikumaran & Sridharan, however sounds a word of caution. "The general principle in law is that, if a statutory due date falls on a holiday, the obligation can be performed on the next working day. In other words, if the due date for payment of taxes falls on a Sunday, the general understanding is that the taxes can be paid on Monday. The CBDT has clarified it vide a Circular issued in 1994. However, with the changes in law, all companies and other tax payers subject to audit under the Income-tax regulations, are mandatorily required to pay their taxes (including advance taxes) only through electronic medium.'Sriram adds: 'So, unless the taxes are remitted though NEFT/RTGS by physically visiting the branch of a bank, the general principle that the taxes can be paid on Monday might not automatically apply to every fact situation. It is possible for the Revenue Authorities to levy interest on delayed payment of taxes, more particularly when the tax payer is a company, or a person liable to tax audit."Chartered Accountant Ashish Karundia says: "Since 15th June 2025 falls on a Sunday, taxpayers might consider paying the first instalment on 16th June 2025, relying on CBDT Circular No. 676 dated 14 January 1994. The tax authorities may, though, argue that, with the availability of electronic payment facilities, unlike in the past when the circular was issued, interest could still be levied for the one-day delay."Though you can make payment the next day however, it is now possible to make payment online even on a holiday. "However, it is important to note that this Circular is quite dated, and since online payment facilities are now widely available. Though, this circular has not been superseded, yet practically there may be levy of interest under section 234B and 234C as it is a system driven computation. Taxpayers are encouraged to make payments within the stipulated deadlines or seek clarifications from their assessing officers to avoid any potential issues," says Surana."In cases where the last date for making payment of such instalments (i.e., 15th September, 15th December and 15th March) happens to be a holiday and the assessee pays the due amount of advance tax on the next working day….It is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged," said the Income Tax Department in a circular dated January 14, Circular 676 of 1994
News18
12-06-2025
- Business
- News18
Is It Necessary To File ITR Of A Deceased Person? Here's What Legal Heirs Need to Know For AY 2025-26
Filing is mandatory for deceased persons if income exceeds exemption limits till the date of death. Legal heirs must register on the tax portal to file. The ITR filing season 2025 is going on, and over 14.5 lakh income tax returns have already been filed in around a week. As it is a legal obligation to report your income to the income tax department, does it also apply to deceased persons? Experts say 'yes". Filing is legally required if income thresholds are met till the date of death. Here's what legal heirs need to know about the ITR filing for a person who has passed away: 'As per the provisions of the Income Tax Act, 1961, filing of income tax return (ITR) is mandatory even for a deceased person in respect of the income earned up to the date of death, provided the total income exceeds the basic exemption limit or otherwise attracts the requirement to file a return u/s 139 of the IT Act. The responsibility of filing such return vests with the legal heir or representative of the deceased," said Suresh Surana, a Mumbai-based chartered accountant. If the deceased earned income above the basic exemption limit in the financial year 2024-25 (April 1, 2024-March 31, 2025), their ITR must be filed for AY 2025-26. The exemption limit is: Sources of income may include: Tax experts said that even if the person passed away mid-year, the income earned up to the date of death is taxable. Who Can File ITR on Behalf of the Deceased? Experts said only a legal heir or representative can file the return. This is typically: To do this, the heir must first register as a legal heir on the income tax e-filing portal at 'For the purposes of filing the return, the legal heir needs to be registered on the income tax website. Registration as a legal heir is mandatory for the e-filing of returns on behalf of the deceased person. The PAN of both the deceased person and legal heir needs to be registered in the e-filing portal. However, if the deceased person's PAN is not registered, then the legal heir can register on behalf of the deceased," Anita Basrur, partner at Sudit K Parekh & Co. LLP, said. How to Register as Legal Heir Online? Log on to the income tax e-filing portal — On the 'Authorised Partners' tab, select 'Register as Representative Assessee' Create a New request by clicking on 'Let's get Started' A new dialogue box would appear – 'Category of Assessee who you want to represent' wherein the 'Deceased (Legal Heir)' option needs to be selected from the drop-down menu. Other details such as Name, PAN, Date of Death, Bank account details of Legal heir, Reason for Registration etc. needs to be entered. The necessary required documents (as indicated below) needs to be attached. It is pertinent to note that the maximum file size allowed is 5 MB. After filing in the necessary details, Click on 'Proceed' and 'Verify the Request'. To verify the request, enter the OTP received on your mobile no. and email ID of the legal heir registered on e-filing portal. Click 'Submit Request'. Request has been submitted successfully will be processed by Income Tax Department within 7 days. After approval of request by the income tax department representative assessee, legal heir will be notified on e-mail and SMS. The legal heir can login to e-filing portal with its own credentials and after login, in profile section switch to representative assessee (as legal heir). The request will also require submission of the following documents as attachments: Copy of the PAN card of Deceased Copy of the PAN card of the legal heir Copy of Death Certificate Copy of Legal Heir Proof etc. Post-Death Income If the deceased's assets (like rental property or fixed deposits) continue to generate income after the date of death, that income must be included in the ITR of the legal heir or inheritor for that period. 'It is to be kept in mind that only income up to the date of death is to be captured in the return of the deceased. All income earned thereafter is taxable in the hands of the beneficiaries, legal heirs, or the estate, as applicable," Parekh said. Which ITR Form to Use? Surana said the ITR form applicable to the deceased shall be determined based on the nature and composition of income earned during the relevant period, similar to any other assessee. ITR-1 (Sahaj): For income from salary, one house property, and interest income ITR-2: For capital gains or multiple house properties ITR-3 / ITR-4: If deceased had income from business or profession The ITR should be filed in the name of the deceased, but verified by the legal heir. Deadline for Filing The ITR deadline for AY 2025-26 for individuals (including legal heirs) is September 15, 2025. However, if the deceased had business income and audit is applicable, the deadline is October 31, 2025. Consequences of Non-Filing Failing to file the ITR of a deceased person, when required, may: * Attract notices or penalties * Delay the processing of refunds top videos View all * Create problems in property or asset transfer If a refund is due, it can only be claimed by filing the ITR properly. About the Author Mohammad Haris Haris is Deputy News Editor (Business) at He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : income tax income tax return ITR filing Location : New Delhi, India, India First Published: June 12, 2025, 14:23 IST News business » tax Is It Necessary To File ITR Of A Deceased Person? Here's What Legal Heirs Need to Know For AY 2025-26
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
Time of India
11-06-2025
- Business
- Time of India
ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn't miss
ITR Filing: Under the new tax regime, standard deduction from salary has increased to Rs 75,000 from Rs 50,000. (AI image) ITR filing FY 2024-25: By June 15, 2025, employers must issue Form 16 to their salaried taxpayers for the fiscal year 2024-25. This year's Form 16 will have several modifications based on the amendments announced in the July 2024 Budget. Hence, it is important for taxpayers to take note of the changes in order to ensure error-free income tax e-filing. The last date to file Income Tax Return (ITR) for FY 2024-25 (AY 2025-26) has been extended this year from July 31 to September 15, 2025. Form 16 for ITR Filing : Top Changes Explained 1. Changes in Standard Deduction: This change is applicable only for individuals filing their income tax return under the new income tax regime. Under the new tax regime, standard deduction from salary has increased to Rs 75,000 from Rs 50,000, effective FY 2024-25. For employees who have selected the new tax regime in FY 2024-25 (AY 2025-26), Form 16 will reflect an enhanced Standard Deduction of Rs 75,000 when employers calculate TDS on salary. This aligns with the current income tax provisions for FY2024-25 under the new tax regime. It's important to note that should an individual decide to switch from new to old tax regime whilst filing ITR for FY 2024-25 (AY 2025-26), the standard deduction allowance from salary income will be limited to Rs 50,000. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Jeśli chcesz zabić czas przy komputerze, ta gra przygodowa jest koniecznością. Gra Przygodowa Dowiedz się więcej Undo Also Read | ITR Filing FY 2024-25: Have you got an Income Tax notice? Don't ignore it! Top types of tax notices & actions required 2. Taxes deducted from other incomes: Form 16 will display tax deductions from additional income sources and Tax Collected at Source (TCS) on particular expenditures. This inclusion applies when employees have submitted Form 12BBA to their employer, according to an ET report. Finance Minister Nirmala Sitharaman's Budget 2024 had seen revised income tax regulations, enabling salaried individuals to notify employers about TDS from other income sources and TCS from specific expenses. These amounts can be deducted from the total tax payable from the employee's salary, resulting in reduced overall TDS from wages. Suresh Surana, a practising chartered accountant, told ET, "This year, Form 16 will show not only tax deducted by the employer on the salary income, but will also show tax deducted and tax collected on other sources of income such as interest on fixed deposits or tax paid as TCS on foreign travel expenditure, etc. However, this will happen only if a salaried employee has shared the details of other taxes deducted (TDS/TCS) via Form 12BAA. " Also Read | ITR e-filing FY 2024-25: ITR-1 and ITR 4 forms enabled online for return filing on income tax e-filing portal; check details 3. NPS Benefits: Under Section 80CCD (2) in the new tax regime, employees are permitted to claim a deduction of up to 14% of their basic salary. This applies to the employer's contribution towards the employee's National Pension System (NPS) account. The enhanced deduction will be reflected in Form 16 only for those who have opted for the new tax regime for TDS from salary. However, if an employee switches from the new to old tax regime whilst filing ITR, the deduction benefits will decrease. In the old tax regime, employees can only claim a deduction of 10% of their basic salary under Section 80CCD (2) for their employer's NPS contribution. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Today
05-06-2025
- Business
- India Today
Are you a freelancer? 5 things to know while filing your ITR
If you're a freelancer in India, tax season can feel like walking a tightrope. Without the comfort of a Form 16 that salaried employees rely on, navigating income, expenses, and deductions might seem like a confusing simplify the process, India Today spoke with CA (Dr) Suresh Surana, who broke down what freelancers should keep in mind while filing their Income Tax Return (ITR), and how they can avoid common mistakes, even without Form a bit of preparation and the right documents in place, Surana says, filing your return can be smooth and SHOULD FREELANCERS KEEP HANDY BEFORE FILING ITR? Unlike salaried individuals with a single employer, freelancers juggle multiple clients and payment modes. That's why organising your financial paperwork is Surana recommends starting with your bank statements for the entire financial year. Highlight every freelance income credit, and make sure it matches your invoices. He said, 'Freelancers should review their bank statements for the entire financial year to track all income credits, particularly those from professional services. Go through them carefully and mark income from freelance work.'Surana added that if your annual gross receipts exceed Rs 25 lakh, maintaining books of accounts is mandatory under the Income Tax Act. Even otherwise, keeping a detailed ledger is a smart move, especially if you haven't opted for presumptive taxation under Section should also collect Form 16 if clients have deducted TDS. 'Cross-check the TDS entries with your Form 26AS and AIS (Annual Information Statement) to ensure proper credit,' he a GST registration? Your GST returns will act as proof of earnings—ensure these numbers match with your you work with overseas clients, keep clear records of foreign income, including bank advice slips and currency conversion details. 'Retaining bank advice slips and forex conversion details will help substantiate foreign receipts in case of queries,' Surana to claim deductions under Sections 80C or 80D for LIC premiums, PPF deposits, or health insurance? Keep receipts and payment proofs if your total tax liability exceeds Rs 10,000, advance tax kicks in. 'Save all payment challans and check that they reflect in your 26AS,' Surana noted. This can help you avoid unexpected interest under Sections 234B and ITR FORM SHOULD YOU USE?As per Surana, most freelancers fall under the 'Profits and Gains from Business or Profession' income said that ITR-3 is ideal for freelancers offering services like consultancy, content writing, tech support, design or writing, if not using presumptive taxation. On the other hand, freelancers eligible for Section 44ADA can use ITR-4 (Sugam), where 50% of gross receipts are considered income, and reporting individual expenses isn't FREELANCERS CLAIM WORK-RELATED EXPENSES?advertisementCertainly, but Surana pointed out that this is allowed only when freelancers are not under the presumptive explained that freelancers can claim deductions for expenses directly related to their work. These include internet bills, rent for a co-working space, cost of software tools, professional fees, marketing and advertising costs, travel expenses related to business, depreciation on capital assets such as laptops or printers, and other direct costs associated with rendering freelance services.'Just ensure you have proper invoices and payment proofs. Personal expenses mixed with professional ones will not be accepted,' Surana cautioned.'However, if a freelancer opts for the presumptive taxation scheme under Section 44ADA, 50% of gross receipts or, as the case may be, a higher sum as claimed by the assessee are treated as deemed income; separate deduction of expenses is not permitted, as all eligible expenses are deemed to be accounted for within the presumptive income,' he FREELANCERS NEED TO PAY ADVANCE TAX?Yes, advance tax is compulsory for freelancers whose total tax due for the year, after considering TDS and credits, is Rs 10,000 or more, the tax expert not using the presumptive taxation scheme under Section 44ADA must follow the standard schedule, 15% by 15th June, 45% by September, 75% by December, and the full amount by March, said Surana.'Missing or underpaying advance tax invites interest under Sections 234B and 234C,' warned Surana. The best approach? Estimate your yearly income early and pay timely TAX ERRORS: WHAT TO WATCH FOR AND AVOIDEven experienced freelancers often slip up while filing ITR. Surana pointed out that not declaring all income, especially from overseas clients or through multiple platforms, is a major mistake. Many also fail to keep proper invoices, receipts, and expense records, which are vital for accurate tax calculations and claiming skipping advance tax payments often leads to interest charges. Some claim personal expenses as business costs, risking disallowance during assessments. Using the wrong ITR form or misclassifying professional income is another frequent mistake.'To avoid these issues, freelancers should maintain clear financial records and segregate business and personal expenses in case of any potential litigation,' said other words, freelancing offers flexibility and creative freedom, but when it comes to taxes, structure and accuracy are essential. With proper documentation, early planning, and a solid understanding of tax rules, freelancers can confidently file their ITR and stay on the right side of the Watch
