Categories
Income tax TAN or Tax deduction

The income tax challan rectification process

  1. Login to incometax.gov.in
  2. Go to “Services” and click on “Challan Correction”.
  3. Click on “Create challan correction request”.
  4. Select the attributes which needs to be corrected. For example: Assessment year, major head, minor head
  5. Select the “Assessment year” or “Challan Identification Number” (CIN)
  6. All the open challans will be displayed on the next screen. You need to select the challan which needs to be corrected.
  7. Enter the correct details (AY, major head or minor head which is correct) and click on continue.
  8. The next screen will show the existing details and updated details. Click on Continue and do the e-verification.
  9. Once e-verification is complete, the challan correction procedure is completed.

 

Step 1: Go to the ITR filing website (https://www.incometax.gov.in/iec/foportal/) and sign in with your credentials. Choose the “challan correction” option located under the “Services” column.

Step 2: A new webpage will open. Here select ‘create challan correction request’.

Step 3: Now a new webpage will load. You will be prompted by the income tax portal to choose the relevant field that needs amending. A taxpayer has three possibilities: (a) modifying the assessment year; (b) altering the tax applicable (major head); and (c) modifying the payment method (minor head). After selecting, click “Continue.”.

Step 4: The taxpayer will be prompted to submit details about the income tax return that requires adjustment in the following phase. Either the assessment year or the challan identification number (CIN) should be given here. After that, click “Continue.”

Step 5: A new webpage will open depending on the choice selected. If the user entered a CIN number, the challan details will be shown. Otherwise, if an assessment year (AY) has been selected, a list of all challans connected with that AY will be displayed. One has to choose the challan which has to be modified. Once you’ve selected your choices, click the Continue icon.

Step 6: An individual needs to input the proper details of the earlier chosen option. Continue by selecting the icon. The example of updating the assessment year will be seen in the picture below.

Step 7: Once the proper details has been successfully input, the taxpayer has to verify the alteration in the tax challan. Through net-banking, Demat, and bank accounts, the verification can be done using an Aadhaar OTP, a digital signature certificate (DSC), or an electronic verification code (EVC). After selecting the authentication option, click Continue.

Step 8: Once the correction is successfully e-verified, the income tax e-filing website will show the success message along with the transaction ID. Keep this transaction ID handy to track the status of the correction request submitted.

Categories
Income tax

The Influence of the Digital India Act on India’s Gross Domestic Product (GDP)

The Digital India Act (DIA)

The Digital India Act (DIA) is a proposed piece of legislation that intends to act as a catalyst for the Indian economy by encouraging more innovation and entrepreneurs while also safeguarding Indian residents in terms of safety, trust, and accountability.

The DIA is predicted to have a large direct and indirect influence on India’s GDP. The DIA will directly contribute to the expansion of the digital economy, which is expected to reach $1 trillion by 2030. The DIA will also generate fresh job possibilities in the digital industry, which is projected to develop at a 20% per year over the next decade.

By making it easier for firms to operate online, the DIA will indirectly assist to increase the efficiency of the Indian economy. This will result in higher productivity and reduced costs, enhancing GDP growth.

The DIA is expected to have a good influence on social indices in India, such as education, healthcare, and financial inclusion. The DIA, for example, will make it less difficult for kids to access online education, which will aid in the improvement of literacy rates. Additionally, the DIA will make it simpler for consumers to receive healthcare services online, which will assist to enhance care quality. Furthermore, the DIA will make it easier for consumers to create bank accounts and conduct monetary transactions online, which will aid in decreasing poverty.

Overall, the Digital India Act is anticipated to have a major beneficial influence on India’s GDP and social metrics. The DIA will assist to make India a more wealthy and fair nation.

The following are some particular instances of how the DIA is predicted to effect India’s GDP:

The DIA will encourage the advancement of emerging digital technologies including artificial intelligence, blockchain, and quantum computing. These technologies have the potential to transform numerous sectors while also providing new employment and driving economic development.

The DIA will make it easier for firms to operate online. This will lower the cost for operating business and make it easier for enterprises to reach new clients.

The DIA will make government services more efficient. This will save both businesses and individuals time and money, promoting economic growth.

The DIA will encourage the development of digital literacy and skills. This will improve India’s workforce’s productivity in the global marketplace.

The DIA is still in its early phases of development, but it has the potential to be a significant engine of India’s economic growth. The DIA is projected to boost India’s GDP, social indicators, and global competitiveness.

Categories
Income tax Uncategorized

Income Tax Audit under Section 44AB – Criteria, Audit Report, Penalty

In India, an income tax audit is conducted under Section 44AB of the Income Tax Act, 1961. It is a formal examination of a taxpayer’s financial records and tax return by a chartered accountant (CA) or a tax auditor to ensure compliance with the provisions of the Income Tax Act. Income tax audits in India are applicable to certain categories of taxpayers meeting specific criteria.

Key Points about Income Tax Audit in India:

1. Mandatory Audit Threshold

As per Section 44AB, the following categories of taxpayers are required to undergo a tax audit if their total income in a financial year exceeds the specified threshold:

a. Businesses: Any person carrying on a business with total sales, turnover, or gross receipts exceeding Rs 1 crore in a financial year (Rs 2 crore from FY 2020-21 onwards).

b. Professionals: Any professional (e.g., doctors, lawyers, architects) with gross receipts exceeding Rs 50 lakhs in a financial year.

c. Presumptive Taxation Scheme: Taxpayers opting for the Presumptive Taxation Scheme under Sections 44AD, 44ADA, or 44AE, and having income lower than the deemed profits and gains.

2. Appointment of Tax Auditor

The taxpayer subject to tax audit needs to appoint a qualified chartered accountant as a tax auditor. The tax auditor will conduct the audit and provide an audit report in the prescribed format (Form 3CA/3CB and Form 3CD).

  1. Audit Process: During the tax audit, the tax auditor examines the taxpayer’s books of accounts, financial statements, supporting documents, and other relevant records to ensure the accuracy and compliance of the tax return.
  2. Due Date for Filing Audit Report: The audit report along with the income tax return must be filed by the due date for filing income tax returns, which is usually September 30th of the assessment year (i.e., the year following the financial year).
  3. Consequences of Non-Compliance: Failure to comply with the tax audit requirements can lead to penalties under Section 271B. A penalty of 0.5% of the total sales, turnover, or gross receipts, subject to a maximum of Rs 1,50,000, can be imposed.

It’s important for taxpayers meeting the audit criteria to ensure timely compliance with the tax audit requirements to avoid penalties and other consequences. Consulting with a qualified chartered accountant or tax consultant can help in the smooth conduct of the tax audit and proper filing of the audit report.

Categories
Income tax

Benefit of Filing of income tax returns

Filing income tax returns offers several benefits for individuals and the broader economy. Some of the key advantages include:

 

1. Compliance with the Law

Paying income tax and filing returns is a legal obligation in many countries. By fulfilling this responsibility, individuals comply with the tax laws, helping maintain a fair and functioning tax system.

2. Claiming Refunds

Sometimes, individuals may have paid more taxes throughout the year than they owe. Filing a tax return allows them to claim a refund for the excess taxes they have paid, putting money back in their pockets.

3. Avoiding Penalties

Failure to file income tax returns or underreporting income can lead to penalties and legal consequences. Filing returns on time and accurately can help individuals avoid these penalties.

4. Documentation for Financial Transactions

Income tax returns serve as essential financial documents. They can be used as proof of income when applying for loans, visas, or other financial transactions.

5. Supporting Social Programs

Income tax revenue is a significant source of funding for various social programs, such as healthcare, education, infrastructure, and welfare initiatives. By paying income tax, individuals contribute to the development and well-being of their society.

6. Building a Financial History

Consistent filing of income tax returns helps individuals build a financial history, which can be beneficial when seeking financial opportunities or demonstrating financial responsibility.

7.  Retirement Benefits

In some countries, contributing to certain retirement plans or pension schemes is linked to tax benefits. Filing returns can enable individuals to claim these benefits and save for their retirement.

8. Avoiding Tax Evasion Charges

Filing income tax returns honestly helps individuals avoid tax evasion charges, which can lead to severe penalties and even criminal prosecution in some cases.

9. Supporting Government Operations

Income tax revenue is a crucial source of funds for governments. It aids in funding public services, maintaining infrastructure, and supporting various administrative functions.

10. Contribution to Economic Growth

Income tax revenue contributes to a country’s overall economic growth and development. It helps the government invest in projects that stimulate the economy and create job opportunities.

Overall, filing income tax returns is not just a legal obligation; it is a way for individuals to contribute to the functioning of society and support various public services and initiatives that benefit everyone.

Categories
Income tax TAN or Tax deduction TDS

Income Tax due dates for July 2023

7 July 2023 –

​Due date for deposit of Tax deducted/collected for the month of June, 2023. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

7 July 2023 –

​Due date for deposit of TDS for the period April 2023 to June 2023 when Assessing Officer has permitted quarterly deposit of TDS under section 192, 194A, 194D or 194H

15 July 2023 –

​​Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of May, 2023

15 July 2023 –

​​Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of May, 2023

15 July 2023 –

​​Due date for issue of TDS Certificate for tax deducted under section 194M in the month of May, 2023​

15 July 2023 –

​Due date for issue of TDS Certificate for tax deducted under section 194S in the month of May, 2023

Note: Applicable in case of specified person as mentioned under section 194S

15 July 2023 –

​Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending June, 2023

15 July 2023 –

​Quarterly statement of TCS deposited for the quarter ending 30 June, 2023​

15 July 2023 –

​Upload the declarations received from recipients in Form No. 15G/15H during the quarter ending June, 2023

15 July 2023 –

​Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes been modified after registering in the system for the month of June, 2023

30 July 2023 –

​Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2023

30 July 2023 –

​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA for the month of June, 2023

30 July 2023 –

​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB for the month of June, 2023

30 July 2023 –

​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M for the month of June, 2023

30 July 2023 –

Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194S in the month of June, 2023

Note: Applicable in case of specified person as mentioned under section 194S

31 July 2023 –

​Quarterly statement of TDS deposited for the quarter ending June 30, 2023

31 July 2023 –

​​Return of income for the assessment year 2023-24 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) partner of a firm whose accounts are required to be audited or the spouse of such partner if the provisions of section 5A applies or (d) an assessee who is required to furnish a report under section 92E.

31 July 2023 –

​Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2023.

31 July 2023 –

​Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2023)​

31 July 2023 –

​Intimation in Form 10BBB by a pension fund in respect of each investment made in India for quarter ending June, 2023​

31 July 2023 –

​Intimation in Form II by Sovereign Wealth Fund in respect of investment made in India for the quarter ending June 2023

Source- https://incometaxindia.gov.in/

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