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Jun 27 2024
ITR Filing Last Date FY 2023-24 AY 2024-25 | Everything You Need to Know

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ITR Filing Last Date 2024

The deadline to file your Income Tax Return ITR for FY 2023-24 AY 2024-25 without incurring a late fee is 31st July 2024. Missing this deadline means you’ll face interest under Section 234A and a penalty under Section 234F.

Key Dates and Penalties

  • Due Date: 31st July 2024
  • Belated Return: File by 31st December 2024
  • Interest: 1% per month under Section 234A
  • Penalty: Rs. 5,000 under Section 234F reduced to Rs. 1,000 if income is below Rs. 5 lakh

What Are FY and AY?

The Financial Year FY is the period in which you earn your income, from 1st April 2023 to 31st March 2024. The Assessment Year AY is the year following the FY, where you assess and file your returns for the previous year’s income, i.e., AY 2024-25 for FY 2023-24.

ITR Filing Start Date for FY 2023-24 AY 2024-25

E-filing for FY 2023-24 starts on 1st April 2024.

Important Due Dates for Tax Filing

  1. Individual/HUF/AOP/BOI non-audited: 31st July 2024
  2. Businesses audited: 31st October 2024
  3. Businesses transfer pricing: 30th November 2024
  4. Revised Return: 31st December 2024
  5. Belated/Late Return: 31st December 2024
  6. Updated Return: 31st March 2027 2 years from the end of the relevant AY

Consequences of Missing the ITR Filing Deadline

  • Interest and Late Fees: Pay 1% interest per month and a late fee of Rs. 5,000 reduced to Rs. 1,000 if income is below Rs. 5 lakh.
  • Loss Adjustment: Inability to carry forward losses to future years.
  • Belated Return: File by 31st December 2024 with penalties.
  • Updated Return: File within 2 years from the end of the relevant AY.

Simplified Filing with Expert Assistance

  • Salaried Individuals: Upload Form 16 and get your return prepared in minutes.
  • Freelancers/Small Businesses: Use our service for seamless e-filing. Join us now: WhatsApp Link

Advance Tax Instalments for FY 2023-24

  1. 15th June 2023: 15% of tax liability
  2. 15th September 2023: 45% of tax liability
  3. 15th December 2023: 75% of tax liability
  4. 15th March 2024: 100% of tax liability

Frequently Asked Questions

1. How to claim an income tax refund after the due date? File a belated return by 31st December 2024. Penalty: Rs. 5,000 Rs. 1,000 if income upto Rs. 5 lakh.

2. How to pay income tax after the due date? File a belated return with penalties and interest charges.

3. What section allows filing ITR after the due date? Section 1394 allows for a belated return with penalties.

4. What is the due date for filing an income tax return? 31st July for non-audit cases, 31st October for audit cases.

5. How to revise income tax returns? File under Section 1395 before 31st December 2024.

6. What happens if I miss the 31st December deadline? File an updated return within 2 years from the end of the relevant AY.

7. Will the refund be delayed for filing the return after the due date? Yes, refunds may be delayed.

8. Will there be a penalty for filing the return if income is below the taxable limit? No penalty for incomes below the taxable limit.

9. What is the due date of return filing for Trusts and Companies?

  • Trusts non-audited: 31st July 2024
  • Trusts audited: 31st October 2024
  • Companies: 31st October 2024 30th November 2024 for those with international transactions.

E-file Your Income Tax Return Now!

Avoid penalties and make your ITR filing process smooth and efficient with our professional help.

Send you requirement with us by clicking the Link below.

https://wa.link/qqq16x

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Jun 14 2024
Advance Tax 1st Instalment Due for FY 2024-25 AY 2025-26

Due Date of Advance Tax FY 24-25 AY 25-26

WHO NEEDS TO PAY ADVANCE TAX?

With reference to Section 208, any Assessee whose estimated tax liability for the year is Rs 10,000 or more must pay advance tax. This includes:

  • Individuals: Any individual with an estimated tax liability of Rs 10,000 or more.
  • Corporates: All types of companies, including public limited companies, private limited companies, and one-person companies.
  • Senior Citizens: People aged 60 years or more who do not run a business are exempt from paying advance tax. Only senior citizens with business income are required to pay advance tax.
  • Presumptive Income for Businesses: Taxpayers under the presumptive taxation scheme (Section 44AD) must pay the entire advance tax by 15th March or have the option to pay all dues by 31st March.
  • Presumptive Income for Professionals: Independent professionals (e.g., doctors, lawyers, architects) under the presumptive scheme (Section 44ADA) must also pay the full advance tax by 15th March or by 31st March.

WHO NEEDS TO PAY ADVANCE TAX?

For both individuals and corporates, advance tax is paid in four instalments during the financial year, running from April to March:

InstalmentDue Date% of Estimated Tax to be Paid
1st15th June15%
2nd15th September45%
3rd15th December75%
4th15th March100%

CALCULATION OF ADVANCE TAX

  1. Compute Tax on Estimated Income from all source for the Year.
  2. Reduce TDS estimated for the year
  3. Reduce Advance tax Paid if any.
  4. Pay the Balance tax in Advance as per the % age given here.
  5. Save Interest.

PAYMENT OF ADVANCE TAX

NameMr. YOUR NAME
Advance Tax forQ1 FY 2024-25
Due Date15-06-2024
PROCEDURE TO MAKE PAYMENT
URL for Paymenthttps://www.incometax.gov.in/iec/foportal/
Quick LinksE Pay Tax
Enter PAN NumberPAN NUMBER
Confirm PAN NumberPAN NUMBER
Enter Phone NumberCONTACT NO.
Enter OTPContinue
Confirm Name and PANContinue
Income TaxProceed
Choose Assessment Year2025-26
Type of Payment (Minor Head) *Advance Tax (100)
 Continue
Fill the Tax Value as Below 
TaxXXXX
SurchargeXXXX
CessXXXX
TotalXXXX
 Continue
Choose Mode of Payment and Complete the challan Payment.
Save the challan for future reference.

CONSEQUENCES OF LATE PAYMENT/NON-PAYMENT

  1. Non-payment of advance tax: Attracts interest under Section 234B. You must pay at least 90% of the total taxes as advance tax or TDS/TCS by 31st March. Failure to do so results in an interest payment of 1% on the entire unpaid amount.
  2. Delay in payment: Attracts interest under Section 234C at 1% per month on the unpaid amount.

Approach for filing Income tax return

Click the Link to chat: https://wa.link/8d6dhu

#Income tax Filing for my salary #File my Tax return #Get my Refund #Income tax Filing for AY 2024-25
#Income tax Filing for FY 2023-24 #ITR 1 #ITR 2 #ITR3 #ITR4 and #ITR5
Due dates for Filing Income tax for FY 2023-24 is 31st July 2024.
arjuncas23 0 Comments
Mar 27 2024
Year End Five Crucial Income Tax Tasks to Complete by March 31, 2024

Year End Five Crucial Income Tax Tasks to Complete by March 31, 2024

As the current financial year draws to a close, it’s essential for taxpayers to wrap up all income tax-related tasks by March 31. This ensures a smooth transition into the new fiscal year and helps avoid penalties or complications. Here are the key tasks you need to focus on:

1. Investing in Tax Saving Schemes:

Tax-saving investments are a vital part of tax planning for taxpayers in India. Under the old tax regime, individuals can make investments eligible for deductions under Section 80C of the Income-Tax Act, 1961, before the March 31 deadline. Options include Public Provident Funds (PPF) and tax-saving fixed deposits. Maximizing deductions under Section 80C reduces tax liabilities and ensures future financial security.

2. Advance Tax Payment:

For taxpayers who missed the March 15 deadline for advance tax payments, March 31 offers a chance to catch up and avoid penalties under Section 234B of the Income-Tax Act. Any tax payment made on or before March 31 qualifies as advance tax, provided it covers more than 90% of the assessed tax amount.

3. Submitting Form 12B to New Employer:

If you’ve switched jobs during the fiscal year (April 1, 2023, to March 31, 2024), it’s crucial to submit Form 12B to your new employer. This form ensures the accurate calculation of total taxable income, correct tax deductions, and the issuance of Form 16.

4. Filing Updated Returns:

March 31 is the last date for taxpayers to file their updated Income-Tax Return (ITR-U) for the Assessment Year 2021-22 (financial year 2020-21). This provides an opportunity for those who missed the initial filing deadline to rectify the omission and comply with tax regulations.

5. Minimum Investment in Government Schemes:

Government savings schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) require a minimum annual investment. If you haven’t met the minimum investment amount for the current financial year, you have until March 31, 2024, to do so and avoid penalties.

Conclusion:

The end of the financial year is an ideal time to assess your finances and strategize for the upcoming year. Review your budget, savings, and investments to ensure they align with your long-term financial goals. Consider any adjustments or improvements you can make to enhance your financial stability and growth.

Contact us for Tax Filing and Planning

arjuncas23 0 Comments
Feb 14 2024
Professional Tax

Frequently Asked Questions

  • General
  • What is Professional Tax? Professional tax is a direct tax that is deducted from the gross salary of the employee by the employer. This tax is levied by the state government. Profession Tax shall also be paid by every person exercising any Profession or calling or is engaged in any trade or holds any appointment, public or private as specified in the Schedule to the Act
  • Who is Eligible for professional tax? A person who is engaged in any Profession, trade, callings or employment in the State of Karnataka can pay the tax directly to the government. For employees, their employer is responsible for deduction and payment of professional tax to their respective State Government as per the rate slab, and also for registering and obtaining professional tax registration certificates.
  • Who is Responsible to Collect and Pay Professional Tax? A person who is engaged in any Profession, trade, callings or employment in the State of Karnataka can pay the tax directly to the government. For employees, their employer is responsible for deduction and payment of professional tax to respective State Government as per the rate slab, and also for registering and obtaining professional tax registration certificates.
  • Who is exempted under the professional tax? The following categories of persons are exempted from
    • Persons who have attained age of sixty years
    • Physically challenged person,….Etc
    For more details, refer concerned notifications.
  • How to pay Professional Tax? The self-employed professionals may enroll using their PAN or GSTIN and then make the payment online.
  • I am Physically challenged; do I need to pay PT? Physically challenged person is exempted from payment of Professional Tax. For more details refer concerned notification.
  • Is there any PT for partners? If PT paid against the Firm, then no need to pay for partners separately.
  • Is there PT for additional places of business? PT is applicable for additional place of business, but no need to pay for the place exclusively meant for Go down.
  • What is the difference between the self-employed person and GSTIN Tax payers? The self-employed person is who is engaged in any Profession, trade, callings or employment in the State of Karnataka (Refer the schedule for more details) and are not registered under GST. On the other hand, GST registered taxpayers, as the name indicates are registered under GST and have a GSTIN number.
  • What are the new features in the enhanced PT system?
    • Simple registration
    • Easy filing and e-payment
    • Digitally signed Enrollment certificate
    • Online Verification of EC certificate by QR code scan
  • Digital Signature and QR Code
  • What is the purpose of QR code in the EC Certificate? The QR Code contains the details for viewing the certificate online. The QR code can be used to verify the certificate online. Scan the QR code and tap on the URL to see your certificate.
  • What is digital signature? Digital signature is used to verify the authenticity of the transactions. All the transactions are digitally signed and can be verified online.
arjuncas23 0 Comments
Feb 14 2024
IRDAI Nears Launch of Bima Sugam: The Electronic Insurance Marketplace

In a significant move toward enhancing the insurance landscape, the Insurance Regulatory and Development Authority of India (IRDAI) is on the brink of realizing its long-anticipated electronic insurance marketplace – Bima Sugam.

On February 13, the regulatory body unveiled draft regulations, marking a pivotal step towards establishing a unified digital platform for insurers, policyholders, and intermediaries. Bima Sugam aims to streamline the sale and purchase of life, health, and general insurance policies, alongside facilitating seamless policy servicing, claim settlement, and grievance redressal. Notably, access to this platform will be fee-free for customers.

Describing Bima Sugam as a robust digital public infrastructure, the IRDAI envisions it as a protocol with open standards and interoperable platforms. It will allow for the integration of various services, simplifying insurance-related transactions.

Operated as a not-for-profit entity under section 8 of the Companies Act, 2013, Bima Sugam will ensure widespread shareholding among life, general, and health insurers, with no single entity holding a controlling stake. The IRDAI will nominate two members to the company’s board, which will appoint a chairperson and chief executive officer (CEO), subject to regulatory approval, and establish a risk management committee.

The inception of Bima Sugam, after nearly two years of development, reflects the IRDAI’s commitment to safeguarding policyholders’ interests and bolstering insurance penetration in India. By enhancing the availability, accessibility, and affordability of insurance products and services, the marketplace is poised to play a pivotal role in realizing the regulator’s vision of ‘Insurance for all by 2047.’

IRDAI Chairman views Bima Sugam as akin to a ‘UPI (United Payments Interface) moment’ for the insurance sector, emphasizing its potential to revolutionize industry dynamics. Addressing concerns raised by distributors, the Chairman assured that the marketplace would not jeopardize their businesses; rather, it would create new avenues for efficient distribution models.

Seeking input from stakeholders including policyholders, insurance companies, distributors, and insurtech players, the IRDAI has invited feedback on the Bima Sugam proposals until March 4, 2024. This collaborative approach underscores the regulator’s commitment to fostering an inclusive and dynamic insurance ecosystem in India.

“Unlock Your Financial Potential: Expert Tax Planning Strategies for Optimal Savings and Growth

SUNMARG

Tags: #Insurance as Tax Plan and Protection #Life Insurance #personal Finance Planning #Maximize Your Savings: Expert Tax Planning Tips, #Strategic Tax Planning Solutions for Financial Success #Tax Efficiency Strategies: Save More, Stress Less #Proactive Tax Planning for Long-Term Wealth Growth #Navigate Tax Season Confidently: Essential Planning Insights #Optimize Your Finances: Effective Tax Planning Techniques #Tax Planning Made Simple: Expert Guidance for Every Situation #Smart Tax Solutions: Unlocking Hidden Savings Opportunities

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Feb 8 2024
Section 43B(h)-Payment based deduction for amount payable to micro and small enterprise

Everything about Section 43B(h)

Section 43B(h)-Payment based deduction for amount payable to micro and small enterprise

👉Applicable from 1st April, 2024 FY 2024-25 onwards
-Not Applicable for Transaction pertaining to on or before 31/03/2023

👉Due Date for Payments
-15 Days from Date of Acceptance if No Written Agreement
-45 Days from Date of Acceptance if Written Agreement is there

👉Applicable for Amount payable to micro and Small Enterprise (MSE) who are manufacturers or service providers
-Not Applicable for amount payable to medium enterprises
-Not Applicable for amount payable to unregistered MSEs
-Not Applicable for amount payable to traders because their registration on UDYAM portal is for the purpose of priority sector lending only

👉Applicable for the amount payable for Goods & Services
-Not Applicable for actionable claims and money
-Not Applicable on Interest on Loans as it is not goods nor services
-Not Applicable on Salary as it is not goods nor services
-Not Applicable on Amount Payable for Capital Goods as it was not claimed as Expense

👉Definitions
-Buyer means whoever buys any goods or receives any services from a supplier for consideration
-Supplier means a micro or small enterprise, which has filed a memorandum with the authority referred to as u/s 8(1)
-Manufacture means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use

👉Not Applicable for Buyer filing ITR u/s 44AD/44ADA/44AE (Presumptive Taxation)
-These sections have overriding effect over section 28 to 43C, so section 43B(h) not applicable
-If buyers turnover below 10 Crore and Cash transactions is below 5% then audit u/s 44AB is not applicable but Books of Accounts are required to be maintain, in such cases section 43B(h) is Applicable

👉If Amount payable to MSME is liable to TDS and that TDS is also not paid to government then dis-allowance will be u/s 43B(h) only and not under section 40(a)(ia)

👉If Amount payable to MSME is inclusive of GST then dis-allowance will be limited to the amount exclusive of GST because GST was never claimed as expenses so it can’t be dis-allowed as expenses

👉Form 3CD for FY 23-24 are yet to be notified by Income Tax Department so what to be reported in Form 3CD will be known once the notification of Form 3CD by Department

👉The enterprise category as Micro, Small & Medium as described in the Micro, Small and Medium Enterprises Development Act, 2006 is made for your reference:

Micro Enterprise

  • Investments less than Rs. 1 crore
  • Turnover of less than Rs. 5 crore

Small Enterprise

  • Investments less than Rs. 10 crore
  • Turnover less than Rs. 50 crore

Medium Enterprise

  • Investments less than Rs. 20 crore
  • Turnover less than Rs. 100 crore
arjuncas23 0 Comments
Feb 1 2024
Rates of TDS applicable for Financial Year 2024-25or Assessment Year 2025-26
Nature of PaymentBasic Cut off (Rs)Individual /Company and others New Rate %)If No Pan or Invalid PAN (Rate %)
192 – SalariesSlab RateSlab Rates30%
192A- Premature withdrawal from Employee Provident Fund (Note 1)50,000Individual: 10% Company: NA20%
193 – Interest on securities (Note 2 & 3)2,500Individual: 10% Company: 10%20%
194 – Dividend other than the dividend as referred to in Section 115-O5,000Individual: 10% Company: 10%20%
194A – Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks (Note 3)40,000 (for individual) 50000 (for Senior Citizens)Individual: 10%20%
194B – Winning from Lotteries10,000Individual: 30% Company: 30%30%
194BA – Winnings from Online Gaming (Note 16)Amount of net winnings comprised
in withdrawal		Individual: 30% Company: 30%30%
194BB – Winnings from Horse Race10,000Individual: 30% Company: 30%30%
194C- Payment to Contractor – Single Transaction (Note 4)30,000Individual: 1% Company: 2%20%
194C-Payment to Contractor – Aggregate During the Financial year (Note 4)1,00,000Individual: 1% Company: 2%20%
194C- Contract – Transporter not covered under 44AE (Note 4)30,000 / 75,000Individual: 1% Company: 2%20%
194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN––20%
194D – Insurance Commission15,000Individual: 5% Company: 5%20%
194DA Payment in respect of life insurance policy (Note 5)1,00,000Individual: 5% Company: 5%20%
194E – Payment to Non-Resident Sportsmen or Sports Association–Individual: 20% Company: 20%20%
194EE – Payments out of deposits under National Savings Scheme2,500Individual: 10% Company: 10%20%
194F – Repurchase Units by MFs–Individual: 20% Company: 20%20%
194G – Commission – Lottery 15,000Individual: 5% Company: 5%20%
194H – Commission / Brokerage15,000Individual: 5% Company: 5%20%
194I – Rent – Land and Building – furniture – fittings2,40,000Individual: 10% Company: 10%20%
194I – Rent – Plant / Machinery / equipment2,40,000Individual: 2% Company: 2%20%
194IA -Transfer of certain immovable property other than agriculture land50,00,000Individual: 1% Company: 1%20%
194IB – Rent – Land or building or both50,000 per monthIndividual: 5%20%
194IC – Payment of Monetary consideration under Joint development agreement–Individual: 10% Company: 10%20%
194J – Professional Fees for technical services (w.e.f. from 1.4.2020) (Note 6)30,000Individual: 2% Company: 2%20%
194J – Professional Fees in all other cases30,000Individual: 10% Company: 10%20%
194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company (Note 7)–Individual: 10% Company: 10%20%
194LA – TDS on compensation for compulsory acquisition of immovable Property (Note 8)2,50,000Individual: 10% Company: 10%20%
194 LBA (1)- Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. (Note 9) Individual: 10% Company: 10%20%
194LB – Income by way of interest from infrastructure debt fund (non-resident)–Individual: 5% Company: 5%20%
194LBB – Income in respect of investment in Securitisation trust.–Individual: 10% Company: 30%30%
194LBC- Income in respect of investment made in a securitisation trust–Individual: 25% Company: 30%30%
194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (Note 10)–Individual: 5% Company: 5%20%
194LD – Interest on certain bonds and govt. Securities (Note 11)–Individual: 5% Company: 5%20%
194M – Payment of Commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.50,00,000Individual: 5% Company: 5%20%
194N – Cash withdrawal in excess of Rs. 20 Lakh during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office.20,00,000Individual: 2% Company: 2% 20%
194N – Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. (Note 12)100,00,000Individual: 2% Company: 2% 20%
194N – Cash withdrawal in excess of Rs. 3 crore during the previous year from one or more account maintained by a Co operative society with a banking company, co-operative society engaged in business of banking or a post office. (Note 15)300,00,000Co-operative Society : 5% 20%
194O – Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.–Individual: 1% Company: 1% 20%
194P- TDS by specified bank to specified senior citizen–Rates applicable to particular slab of income including applicable Surcharge and Health & Education Cess
194Q- Purchase of goods50,00,0000.1%
194R- Deduction of tax on benefit of perquisite in respect of business or professionResident Indiviual: 20,00010%
194S- Transfer of a virtual digital assetResident Individual & HUF: 50,000

Others: 10,000		1%
195- Payment of any sum to Non resident––Higher of Rate in force or Double Taxation Avoidance Act rate
196B – Income from units–Individual: 10% Company: 10%20%
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)–Individual: 10% Company: 10%20%
196D – Income of FIIs from securities–Individual: 20% Company: 20%20%

What is the due date for depositing the TDS to the government?

The Tax Deducted at Source must be deposited to the government by 7th of the subsequent month. For instance, TDS deducted in the month of June must be paid to the government by 7th July. However, the TDS deducted in the month of March can be deposited till 30th April.

What is the due date of filing TDS returns?

Filing TDS returns is mandatory for all the persons who have deducted TDS. TDS return is to be submitted quarterly. Different forms are prescribed for filing returns depending upon the purpose of the deduction of TDS. Various types of return forms are as follows:

1. Form 26Q – TDS on all payments except salaries

Q1 – 31st July

Q2 – 31st October

Q3 – 31st January

Q4 – 31st May

2. Form 24Q – TDS on Salary

Q1 – 31st July

Q2 – 31st October

Q3 – 31st January

Q4 – 31st May

3. Form 27Q – TDS on all payments made to non-residents except salaries

Q1 – 31st July

Q2 – 31st October

Q3 – 31st January

Q4 – 31st May

arjuncas23 0 Comments
Feb 1 2024
Tax Slab Rates For FY 2024-25 As Per Budget 2024

For Individuals of age upto 60 years

If the individual Adopted New Tax regime has to follow the below slab rates:

SITotal IncomeRate of Tax
1Up to Rs. 3,00,000Nil
3From Rs. 3,00,001 to Rs. 6,00,0005 percent.
4From Rs. 6,00,001 to Rs. 9,00,00010 percent.
5From Rs. 9,00,001 to Rs. 12,00,00015 percent.
6From Rs. 12,00,001 to Rs. 15,00,00020 percent.
7Above Rs. 15,00,00030 percent

If the individual opts for old tax regime then has to follow the rates as below slab.

SITotal IncomeRate of Tax
1Up to Rs. 2,50,000Nil
2From Rs. 2,50,001 to Rs. 5,00,0005 per cent.
3From Rs. 5,00,001 to Rs. 10,00,00020 per cent.
4Above Rs. Rs. 10,00,00030 per cent.

For Individuals of age from 60 years upto 80 years (Senior Citizens)

If the individual Adopted New Tax regime has to follow the below slab rates:

SITotal IncomeRate of Tax
1Up to Rs. 3,00,000Nil
3From Rs. 3,00,001 to Rs. 6,00,0005 percent.
4From Rs. 6,00,001 to Rs. 9,00,00010 percent.
5From Rs. 9,00,001 to Rs. 12,00,00015 percent.
6From Rs. 12,00,001 to Rs. 15,00,00020 percent.
7Above Rs. 15,00,00030 percent

If the individual opts for old tax regime then has to follow the rates as below slab.

SITotal IncomeRate of Tax
1Up to Rs. 3,00,000Nil
2From Rs. 3,00,001 to Rs.
5,00,000		5 per cent.
3From Rs. 5,00,001 to Rs.
10,00,000		20 per cent.
4Above Rs. Rs. 10,00,00030 per cent.

For Individuals of age above 80 years (Super Senior Citizens)

If the individual Adopted New Tax regime has to follow the below slab rates:

SITotal IncomeRate of Tax
1Up to Rs. 3,00,000Nil
3From Rs. 3,00,001 to Rs. 6,00,0005 percent.
4From Rs. 6,00,001 to Rs. 9,00,00010 percent.
5From Rs. 9,00,001 to Rs. 12,00,00015 percent.
6From Rs. 12,00,001 to Rs. 15,00,00020 percent.
7Above Rs. 15,00,00030 percent

If the individual opts for old tax regime then has to follow the rates as below slab.

SITotal IncomeRate of Tax
1From Rs. 5,00,001 to Rs.
10,00,000		20 per cent.
2Above Rs. Rs. 10,00,00030 per cent.

Rebate under section 87A

1. Under the provisions of section 87A of the Act, an assessee, being an individual resident in India, having total income not exceeding Rs 5 lakh, is provided a rebate of 100 per cent of the amount of income-tax payable i.e., an individual having income upto Rs 5 lakh is not required to pay any income-tax that will be consumed by the government.

2. From assessment year 2025-26 onwards, an assessee, being an individual resident in India whose income is chargeable to tax under the proposed sub-section (1A) of section 115BAC, shall now be entitled to a rebate of 100 per cent of the amount of income-tax payable on a total income not exceeding Rs 7 lakh.

Rate of tax for Association of Person and Body of Individuals

As per section 167B the following is the rate of tax for AOP/ BOI:

a. In case the shares of the members are known and if all members are having Net Taxable income is up to basic exemption limit and none of the member is a foreign company then the income is taxed at slab rate

b. In case the shares of the members are known and if one or more member’s net taxable income is more than basic exemption limit and none of them is foreign company then the tax the entire income at Maximum Marginal rate i.e. 42.744%

c. In case the shares of the members are unknown then the tax the entire income at Maximum Marginal rate i.e. 42.744%

Rate of tax for Cooperative Society

In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part I of the First Schedule to the Bill. They remain unchanged as below:

Slab of IncomeRate
Upto Rs. 10,00010%
10,001 to 20,00020%
Above 20,00030%
Surcharge in case of Cooperative Society
a) In the case of every co-operative society (except resident co-operative society opting under section 115BAD) or firm or local authority, at the rate of twelve per cent of such income-tax, where the total income exceeds one crore rupees;
(b) In case of resident co-operative society opting under section 115BAD, at the rate of ten percent of such income tax.

Rate of tax for Firms:

In the case of firms, the rate of income-tax has been specified in Paragraph C of Part I of the First Schedule to the Bill. They remain unchanged. Income of Partnership firms and LLP shall be taxable at the rate of 30%.

Note: LTCG shall be taxed at 20% and STCG 111A at 15% for firm

Surcharge in case of firms:

In case of firm 12% surcharge will be levied if Net total income exceeds Rs. 1 Crore.

Rate of tax for Local authorities

The rate of income-tax in the case of every local authority has been specified in Paragraph D of Part I of the First Schedule to the Bill. They remain unchanged at 30%.

Rate of tax for Companies

The rates of income-tax in the case of companies have been specified in Paragraph E of Part I of the First Schedule to the Bill.

Type of companyRate of tax
Domestic company (If turnover for FY 2018-19 is up to 400 Crores)
Opting for Section 115BAA		25%
22%
Domestic Company (Others)30%
Foreign Company40%

Surcharge In Case Of Company

Type of CompanyRate
Domestic with income upto Rs. 1 Crore but not exceeding Rs. 10 crore7%
Domestic with income exceeding Rs. 10 crore12%
Company exercising option under section 115BAB and 115BAA10%
Foreign with income upto Rs. 1 Crore but not exceeding Rs. 10 crore2%
Foreign with income exceeding Rs. 10 crore5%

Note:

All of the above tax calculated shall be further increased by health and education cess of 4%

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Discover a Second Chance: Update Your Income-Tax Return (ITR) for FY 2022-23
Jan 11 2024
Discover a Second Chance: Update Your Income-Tax Return (ITR) for FY 2022-23

If you missed the December 31, 2023, deadline for filing your Income-Tax Returns (ITRs) for the financial year (FY) 2022-23 or assessment year (AY) 2023-24, there’s still hope to rectify errors and file the Updated Income-Tax Return (ITR-U).

The Income-Tax portal, enhanced by the Central Board of Direct Taxes (CBDT), streamlines the electronic filing of revised ITRs for FY 2022-23 or AY 2023-24.

In the Union Budget 2022, the government introduced the ITR-U form for updating ITRs. ITR-U allows taxpayers to correct omissions or errors on their ITRs up to two years from the end of the relevant AY to keep their ITRs up to date.

The ITR-U form is an option for individuals who have not filed their ITR or incorporated inaccurate entries while filing their ITR.

Leveraging the provisions of Section 139(8A) of the Income-Tax Act (ITA), 1961, taxpayers can rectify errors or updates in their original return without facing legal action for incorrect information. A taxpayer has the opportunity to update the ITR within two years.

The calculation of these two years is considered from the end of the year in which the original ITR was filed. For example, for AY 2023-24, if a taxpayer missed the revised or belated return filing window, they can file an ITR-U after the end of the assessment year, i.e., March 31, 2024, but within two years from there, which is March 31, 2026.

Regardless of whether a taxpayer has filed an original, belated, or revised ITR or has completely missed filing the ITR in a specific FY, they can still benefit from the ITR-U form.

However, note that the ITR-U form cannot be filled in cases where an updated return has already been filed, for claiming a refund, for filing a nil return, and when an updated return results in lower income tax liability.

If the updated ITR is filed within 12 months from the end of the relevant assessment year, the taxpayer needs to pay additional taxes of 25% of the aggregate tax and interest due. This additional amount increases to 50% if the ITR-U is filed after 12 months but before 24 months from the end of the relevant AY.

To file an ITR for both years, ensure you are registered on the e-filing portal. Good news – there is no penalty for filing an ITR-U form. However, be aware that an additional tax will be levied under Section 140B of ITA. Don’t miss this opportunity to set things right!

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Aug 31 2023
Registering a Private Limited Company in India

Registering a Private Limited Company in India is a strategic move for entrepreneurs looking to establish a distinct legal entity that offers numerous benefits in terms of liability protection, credibility, and growth opportunities. This guide outlines the step-by-step process of registering a Private Limited Company in India and provides a comprehensive list of essential documents required for a successful registration.

Incorporation process for Private Limited Company

Step-by-Step Registration Process:

  • Step 1: Obtain Digital Signature Certificates (DSC)
    • Step 2: Obtain Director Identification Number (DIN)
    • Step 3: Choose a Suitable Company Name
    • Step 4: Prepare and File the Incorporation Documents
    • Step 5: Pay the Requisite Fees
    • Step 6: Verification and Approval by the Registrar of Companies (ROC)
    • Step 7: Receive Certificate of Incorporation

Essential Documents Required:

  • Memorandum of Association (e-MoA)
  • Articles of Association (e-AoA)
  • Identity and Address Proof of Directors and Shareholders

Identity Valid documents :  PAN and Voter ID, DL, or Passport 

Address Proof :  Utility Bill, Bank statement. 

  • Proof of Registered Office Address

Utility Bill, NOC, Rental agreement. 

  • Declaration of Consent to Act as Director
  • PAN and TAN of the Jurisdictioon Details
  • Board Resolution for Authorizing Key Activities

Advantages of Registering as a Private Limited Company

Registering your business as a Private Limited Company in India offers a multitude of advantages that can significantly contribute to your business’s success and growth. Here are some key benefits:

  1. Limited Liability: One of the most significant advantages of a Private Limited Company is limited liability. The liability of the shareholders is limited to their shareholding in the company. In case of financial losses or legal disputes, personal assets of shareholders are protected, providing a safety net for individual wealth.
  2. Separate Legal Entity: A Private Limited Company is a separate legal entity distinct from its owners. This separation ensures that the company has perpetual existence, unaffected by changes in ownership or the death of shareholders.
  3. Credibility and Trust: Being a registered legal entity, a Private Limited Company commands more credibility and trust among customers, suppliers, and partners. It enhances your company’s reputation and can attract more business opportunities.
  4. Easy Fundraising: Private Limited Companies have better access to funding compared to other business structures. They can issue shares to raise capital from investors, venture capitalists, and even through public offerings, which can provide financial support for expansion and development.
  5. Employee Benefits: Offering employee stock options and other benefits is easier in a Private Limited Company, making it an attractive option for hiring and retaining talented individuals.
  6. Ownership Transfer: Shares of a Private Limited Company can be easily transferred or sold to other individuals or entities, enabling changes in ownership without disrupting the business operations.
  7. Tax Advantages: Private Limited Companies enjoy certain tax benefits and incentives that can lower the overall tax liability. Additionally, the corporate tax rate for Private Limited Companies is generally lower than personal income tax rates.
  8. Business Contracts: Private Limited Companies have better access to legal contracts, partnerships, and agreements, which can lead to growth opportunities and strategic collaborations.
  9. Capacity to Sue and Be Sued: As a distinct legal entity, a Private Limited Company can sue and be sued in its own name, streamlining legal proceedings.
  10. Professional Image: Registering as a Private Limited Company projects a professional image, which can help in attracting clients, customers, and investors.
  11. Compliance and Regulation: Private Limited Companies are subject to regulatory oversight, which fosters transparency and accountability. This can lead to better governance and business practices.
  12. Exit Strategy: If needed, Private Limited Companies provide a clear structure for ownership exit through share transfers or selling the business, ensuring a smooth transition.
  13. Global Expansion: A registered Private Limited Company can engage in international business and has a better chance of establishing credibility and partnerships abroad.
  14. Banking and Credit: Private Limited Companies have easier access to loans, credit facilities, and banking services due to their formalized structure and legal status.
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