After the overhaul of the income-tax website to make tax-filing easier comes a proposal to have a common ITR form, which will ensure that taxpayers are asked only relevant questions, depending on the nature and level of their income.

Every year the Central Board of Direct Taxes (CBDT) issues updated Income Tax Return (ITR) forms around the start of the new assessment year i.e., in the month of April. The updated forms are used for the filing of returns on income earned in the previous year or the relevant financial year.

However, on November 1, the CBDT issued a draft common Income-tax Return form to replace the multiple ITR forms currently in use. As many as four ITR Forms (ITR 2, ITR3, ITR5 and ITR6) will be replaced by this form. ITR1 (for salaried persons) and ITR4 (for a presumptive taxation scheme will coexist as optional forms, while ITR7 (which is usually used by taxpayers classified as public/charitable trusts) will remain unchanged.

Deepak Jain, Chief Executive, TaxManager.in pointed out that the Income Tax Authorities keep updating forms on a regular basis to ease the filing process every year for taxpayers.

Do you know Indians own the maximum properties in London? In fact, the number of Indian property owners exceeds native English property owners.

Not just in London, Indians are buying properties even in places like Dubai, New York, and Manchester.

Though the trend of Indians buying properties abroad is not new, in the recent past, there has been a significant rise in the number. The trend can also be substantiated looking at the outward remittance from India to buy immoveable assets abroad.

“Under LRS, an individual can remit $250,000 in a financial year as investment in property in a foreign country,” said Deepak Jain, chief executive, TaxManager.in, a tax e-Filing and Compliance Management Portal

The Income-Tax (I-T) Department has issued tax refunds amounting to more than Rs 1.14 lakh crore to over 1.97 crore taxpayers between April 1, 2022 and August 31, 2022. If you filed your Income-Tax Return (ITR) on time and haven't got your refund yet, you need to take a few steps.

Says Deepak Jain, chief executive, TaxManager.in,

Now that you have filed your income tax return (ITR)—and we hope that you did by July 31—you need to check your mailbox—physical and digital—to see if you have received any messages from the income tax (I-T) department.

Since the I-T department processing is now fully automated, your post-filing returns are processed at the department’s centralised processing centre (CPC). That means that most communications are computerised. During the process, you may receive intimations and notices from the department under different sections.

Remember, it can just be an intimation, where you may not have to do anything, but in certain cases you may have to be proactive.

Said Deepak Jain, chief executive, TaxManager.in, a tax e-filing and compliance management portal. “This is a completely automated and computer-generated process in which the data given by the taxpayer is compared with the details available to the income tax department. In case of any discrepancies in arithmetical errors, internal inconsistencies, tax calculation and tax payment verification, then intimation under Section 143(1) is sent to the taxpayer,”

In a recent case, the Income-Tax Appellate Tribunal (ITAT), Delhi bench, held that cash gifts from brother and sister can’t be treated as ‘unexplained’ by the assessing officer, especially if they were given for a medical emergency. The case, however, once again highlights the need for taxpayers to know the rules and limits that govern cash transactions.

Says Deepak Jain, chief executive, TaxManager.in,

The last date to file your income-tax return for income earned in the financial year 2021-22 (assessment year 2022-23) has passed. But you can still file your tax return in some cases.

For instance, if you have already filed your income tax return, but discovered any mistake or missed reporting any income, you can file a revised return.

If you have not yet filed an income tax return for FY 2021-22, you can file a belated return.

If you want to update your older return you can do that too. But there are penalties and limitations associated with it, so let's read more.

“This return can be filed three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier,” Said Deepak Jain, chief executive, TaxManager.in, a tax e-Filing and compliance management portal. This means that for the AY 2022-23 you can file revised returns by December 31, 2022.

Did you plan your taxes for the current assessment year (AY2022-23) as per the new tax regime but missed filing the income tax return (ITR) by the 31 July deadline? Well, you are in for an unpleasant surprise. Income Tax (I-T) laws do not allow taxpayers to file belated ITR under the new tax regime, which would mean that all belated ITRs have to be mandatorily filed as per the old regime.

Says Deepak Jain, chief executive, TaxManager.in,

Taxpayers who missed the July 31, 2022 deadline for filing Income-Tax Return (ITR) may file a belated return. A belated return can be filed for a previous year at any time three months before the expiry of the relevant assessment year, or before completion of assessment, whichever is earlier. Hence, the effective date for filing a belated return for Assessment Year (AY) 2022–23 is December 31, 2022.

Says Deepak Jain, chief executive, TaxManager.in,

The due date for filing your income tax return for the assessment year 2023 was July 31. The government has not given any extension to the ITR filing deadline, as has been confirmed today.

Says Deepak Jain, chief executive, TaxManager.in, a tax e-filing and compliance management portal: “If due to any reason you have missed the deadline for filing your ITR for AY23, then you can still file it with a late penalty fee. This return is called a belated return and can be filed prior to three months' end of the relevant assessment year.”

Irrespective of the amount and whether it is taxable or exempt, make sure you disclose in your tax returns any income, windfall gains, capital gains, interest income, etc., you may have had during the financial year

“Interest income earned in the financial year is taxable under the heading ‘Income from other sources.' The taxability of interest income is determined by its source,” said Deepak Jain, Chief Executive, TaxManager.in, a tax e-Filing and compliance management portal.

The due date to file income tax return is just two days away. If you are finding it difficult to do it yourself, you could take the help of experts. But this comes at a price depending on the source of income and its complexities. Rather, you could look at these e-filing intermediaries instead.

Says Deepak Jain, chief executive, TaxManager.in, a tax e-filing and compliance management portal: “The income tax department launched a scheme in 2007 for Electronic Furnishing Return of Income with the motive to integrate and consolidate the interactions between the Income Tax department and taxpayers.”

The 31 July deadline to file Income Tax returns is fast approaching with the Centre in no mood to offer an extension.

Over the last two financial years in the COVID-19 pandemic, the government had extended the deadline for filing ITRs to ease compliance for taxpayers.

“Dear taxpayers, Do remember to file your ITR if you haven't filed yet. The due date to file ITR for AY 2022-23 is 31st July, 2022,” the Income Tax Department tweeted.

“In case of failure to file ITR by the due date, you can file the belated return by 31 December 2022. A penalty of Rs. 5,000 is levied if the return is filed after the due date but before 31st December 2022,” Deepak Jain, chief executive of tax e-Filing and Compliance Management Portal TaxManager.in told Financial Express.

Twitter was abuzz over the weekend. Individuals, chartered accountants and CA associations were clamouring for an extension of the July 31 income tax return filing deadline. #Extend_due_date_immediately was among the trending hashtags.

The chatter started after revenue secretary Tarun Bajaj told the Press Trust of India on July 22 that the government was not planning to extend the last date for ITR filing. Penalties and penal interest await those who miss the current July 31 deadline.

Although the financial year ends on March 31, people are still waiting for documents that provide details of their income and expenses before they can file the income-tax returns.

The last date to file ITR for the financial year 2021-22 is July 31, 2022. Unlike in the previous years, the deadline for ITR Filing for the assessment year 2022-23 may not get an extension this time. Last week, over 2.3 crore income tax returns were filed by July 20 for fiscal 2021-22 and the government is not considering any extension of the due date for ITR Filing for AY 2022-23.

The filing of Income Tax Return (ITR) is for the income of the previous year and, therefore, for the financial year 2021-22, the assessment year is 2022-23.

A penalty of Rs. 5,000 is levied if the return is filed after the due date but before 31st December 2022,” says Deepak Jain, Chief Executive, TaxManager.in a tax e-Filing and Compliance Management Portal.

Just a few days are left to file your income tax return (ITR) for Financial Year 2021-22 (Assessment Year 2022-23).

You have the option of filing it on your own, or availing the services of various experts to compute your income and tax liability, prepare the return, and file it. These experts include government-approved service providers, private intermediaries, and chartered accountants. Whatever it takes, make sure you file the return before the due date.

In order to help the taxpayers prepare and file their returns, the government notified the Tax Return Preparers Scheme, 2006. Under this scheme, the government gives training to people to act as authorised tax return preparers (TRPs).

If you have to file your income tax returns (ITR), it is better to do it in advance rather than wait till the last day.

Last-minute mistakes and e-filing website malfunctions are very common. On June 2, the income-tax department issued an advisory through the official Twitter handle, alerting tax-filers about delays on the income-tax portal. If such delays persist, you could miss the deadline.

You could file your tax returns after the due date, but then penalties and interest kick in. Interest kicks in as soon as the financial year (for which you pay taxes) gets done.

In case of filing a belated return, “if the assessee is eligible for a refund, then no interest is given on the refundable amount,” said Deepak Jain, chief executive of TaxManager.in, a tax e-filing and compliance management portal. In other words, there is a price to pay for a belated return, even if eligible for a refund.

Many people had taken to online games during the lockdown. The possibility of earning a windfall, while playing from home, had attracted a lot of players to them. Now, with the deadline for filing income-tax return (ITR) approaching (July 31, 2022), gamers need to know the rules that govern taxation of income from online games.

Deepak Jain, chief executive, TaxManager.in says, “Winnings from games of skill need not be taxed. However, most platforms deduct 30 per cent of the winnings and pay out the rest. The winners can claim a refund of the excess tax.”

The choice of income-tax return forms depends on your source of income, income level, and so on. This year, there are a few changes in the details sought and some new disclosure norms have been introduced.

“The ITR-1 form requires details regarding retirement benefit accounts maintained in notified countries under Section 89A, namely Canada, the United States of America, the United Kingdom of Great Britain and Northern Ireland. This amount needs to be included in the net salary. The form also requires information on income from retirement accounts maintained in other foreign countries,” said Deepak Jain, chief executive, TaxManager.in, a tax e-filing and compliance management portal.

The last date for filing income-tax return (ITR) is July 31, 2022, so taxpayers should begin gathering the relevant documents and familiarising themselves with tax-filing rules. Senior citizens, in particular, are one set of taxpayers to whom a different set of rules apply.

Deepak Jain, chief executive, TaxManager.in adds that senior and super senior citizens may also need to fill a few other forms, such as 12BBA and 15H. The latter can help them avoid tax deduction at source (TDS).

The Central Board of Direct Taxes (CBDT) keeps amending or adding conditions on when it becomes mandatory to file income tax return (ITR).

Recently on April 21, 2022, the CBDT issued a circular, which added four new conditions related to business turnover, professional receipts, bank deposits and spending, which makes it mandatory to file ITR.

These conditions notified by the CBDT are applicable for Assessment Year (AY) 2022-23 onwards. Besides these few new conditions, there are various other existing conditions which make it mandatory to file ITR. However, even if you are not compulsorily required to file the ITR, still there are merits and benefits of filing the ITR.

Deepak Jain, chief executive, TaxManager.in says - On the other hand, ITR is a common prerequisite for applying for loans, credit cards and several other purposes. “Visa application approvals require an assessee to be tax-compliant, as these documents act as the applicant’s income proof”

While many employees claim income tax deduction either on HRA or on home loan repayment, there are few who claim both these deductions together. For a salaried person, who has very limited tax saving avenues, the tax deduction benefits available through HRA and home loan repayment become critical as it helps in saving a significant amount of tax. If you are eligible to claim these deductions simultaneously but if you are not utilising it fully, then you are losing your hard-earned money which you could have easily saved. Here are three ways you can claim HRA and home loan tax deductions together.

Deepak Jain, chief executive, TaxManager.in says - "In special circumstances, if an assessee can prove that the owned property is quite far from the place of work, and hence the rented accommodation has been availed, then HRA tax exemption and home loan benefits both can be availed,"

The due date for income tax return (ITR) filing for FY 2021-22 and the Assessment Year or AY 2022-23 is 31st July 2022.

The Income-Tax (I-T) Department nowadays provides pre-filled forms to make the filing of income-tax return (ITR) easier. Nonetheless, you must have a number of documents handy at the time of filing return so that you can cross-check the data in the pre-filled form.

Deepak Jain, chief executive, TaxManager.in says - To make filing of Income Tax Returns (ITR) easier, the Income Tax department offers pre-filled forms. Keeping these documents handy while filing your ITR will help you cross check the pre-filled form data. "The income tax filing procedure does not require you to attach or upload any documents while filing the Income-tax return. It is an annexure-less procedure but in case of any enquiry by the assessing officer, documents and certificates must be presented as proof to the assessing officer,"

Did you pay rent in 2021-22 and also receive house rent allowance (HRA) as part of your salary? In that case, you can save on tax payment, provided you have proof of the rent paid. If you did not submit the HRA documents to your employer, the HRA section in your Form 16 will be considered taxable. However, there is a way out

Deepak Jain, chief executive, TaxManager.in says, If an assessee owns a property in another city, or if his/her property is rented out, he/she can enjoy the benefits of both home loan and HRA.”

Come July 1 and your cryptocurrency sale transactions will attract tax deducted at source (TDS) of 1 per cent.

This will be applicable to all virtual digital asset (VDA) transfers – cryptocurrencies, non-fungible tokens (NFTs), and so on – worth over Rs 10,000.

Cryptocurrencies have attracted a large number of investors and created quite a buzz in the last few years. While there is a Cryptocurrency Bill underway to regulate digital assets, the tax department wants to ensure its share of the pie. For this purpose, in this year’s Budget, the central government introduced a provision for TDS on transfer of VDAs and tax on gains from such transfers. “We are only taxing the profit made on these assets since a large number of crypto assets are being bought and sold; we are now taxing cryptos so we know who is buying them and keep a tab on the money trail,” Finance Minister Nirmala Sitharaman had then said.

Deepak Jain, chief executive, TaxManager.in says, “You will not be allowed to be carry forward the losses to subsequent years for set-off against gains in those years either.”

Taxation is a complex subject and the frequently changing laws, formats and policies can boggle anyone’s mind. An assessee gets four months to prepare for filing tax returns. Here is a tax-preparation checklist:

• Link Aadhaar with PAN
• Salaried and other income
• Documents for house property
• Sale of equity shares
• Documents needed for section 80C
• Form 26AS and annual information system (AIS)

AIS is a comprehensive statement of financial transactions in a financial year providing details of income received from various sources irrespective of the fact that tax has been deducted at source. After the electronically centralized processing of the AIS form, an assessee can check the following details—TDS/TCS, SFT, payment of taxes and demand

The Central Board of Direct Taxes (CBDT) recently issued guidelines on how the new tax deducted at source (TDS) provisions regarding benefits received in a business or profession are to be applied. These provisions will come into effect from July 1.

Deepak Jain, chief executive, TaxManager.in says, “The Union Budget had introduced them by inserting a new Section 194R into the Income-Tax (I-T) Act, 1961.”

Pre-filled income-tax return (ITR) forms make an assessee’s task easier as she doesn’t have to enter all the information in each and every place in the form herself. At the same time, assessees shouldn’t blindly trust the pre-filled data as it is not always error-free. If, for some reason, a person fails to report all the income earned by her from all her deposit accounts, either intentionally or otherwise, she is liable to penal provisions. The assessee can’t blame the pre-filled forms for failing to capture the correct data.

Deepak Jain, chief executive, TaxManager.in says, “If, for some reason, a person fails to report all the income earned by her from all her deposit accounts, either intentionally or otherwise, she is liable to penal provisions. The assessee can’t blame the pre-filled forms for failing to capture the correct data.”

Attention to details is paramount when filing income-tax return (ITR). By mid-June, employees receive Form 16 from their employers. The first step in filing ITR is to compare Form 26AS with Form 16. If there are discrepancies in the figures quoted in the two documents, they need to be rectified.

Deepak Jain, chief executive, TaxManager.in says, “The latest Form 26AS also includes information on specified financial transactions, pending and completed assessment proceedings, tax demands, and refunds.”

If you’re a salaried individual and think the “Advance Tax” provision is not applicable to you, you’re wrong. Advance tax liability may arise for a person having salary as the primary source of income, but also having earning from other sources such as interest from deposits, rental income, capital gains and so on.

“As per section 208 of the Income Tax Act, Individuals who have an estimated tax liability of Rs 10,000 or more in a financial year are liable to pay advance tax. Senior citizens who are more than 60 years of age are exempt from this tax liability, provided they don’t have income from business and profession,” says Deepak Jain, Chief Executive, TaxManager.in

If there is a change in the tax liability, then the taxpayer can revise the quantum of advance tax in the remaining installments.

The total tax liability for any taxpayer is arrived at after taking into account the income earned from various sources. As per section 208 of the Income Tax Act, every person whose estimated tax liability for the year is Rs. 10,000 or more, has to pay his tax in advance, in the form of advance tax. The advance tax has to be paid in 4 installments during the financial year.

What if a taxpayer fails to pay advance tax? “You are required to pay interest on due tax under Section 234 C if there is a delay in the payment of Advance Tax,” says Deepak Jain, chief executive, TaxManager.in

Many employees faced salary cuts because of the disruption caused by Covid-19. But when the outlook improved, salaries of many such employees were reinstated, and some even received bonuses.

Rule 21A of the I-T rules prescribes the method for computing relief (see table). Deepak Jain, Chief Executive, TaxManager.in, says, “An individual can claim relief under Section 89(1) only if she submits Form 10E.” This form can be filed online on the

The CBDT has issued a circular pertaining to Sections 206AB and 206CCA of the I-T Act, which provide details regarding people to whom higher TDS/TCS rates should apply.Individuals who have not filed their income-tax returns (ITR) for 2020-21 (FY21) will now be on a list of non-filers prepared by the income-tax (I-T) department. Tax deduction at source (TDS) and tax collected at source (TCS) will be levied at a higher rate from such individuals with effect from April 1, 2022.

Finally, as Deepak Jain, chief executive, TaxManager.in, says, “To even claim the excess TDS deducted, people will need to filetheir tax returns.” ....”

Tax Treatment: Since this SGB’s tenure is eight years but you are prematurely redeeming after five years, a long-term capital gains (LTCG) tax of 20 per cent with indexation benefit will apply. If you decide to not opt for the indexation benefit, then a 10 per cent tax will be applicable.

"If someone wishes to redeem this SGB, the LTCG per unit will be Rs 1,504. So, the LTCG tax (20 per cent) would be Rs 301 per unit. Indexation benefit has been calculated on the basis of Cost of Inflation Index taken as 317, which is for FY22. Cost of Inflation Index for FY23 is yet to be notified, " explains Deepak Jain, CEO, TaxManager, a

If a property is not eligible for Section 54 benefit, or if some excess capital gain is left (after deducting the cost of new acquisition), that will get taxed at the rate applicable to long-term capital gain on sale of residential property. Deepak Jain, chief exe¬cutive officer of Tax Manager.in, says, “A tax rate of 20 per cent will be levied along with surcharge and cess,

CBDT’s move aimed at curbing unaccounted financial transactions and keeping a check on cash transactions, say tax experts.

The main objective of the circular is to put a check on unaccounted financial transactions through the cash route. “The purpose of this circular is curbing cash transactions by limiting the threshold for such transactions. If the assessee (individual, corporate, HUF or society) deposits or withdraws any cash amount crossing the threshold in the financial year, the banking institution or any reporting persons must inform the I-T department about the transactions,” says Deepak Jain, chief executive of TaxManagers.in.

Based on this, the I-T department will match the transactions with the previous I-T return. If there is any discrepancy, it will send across high-value transaction notices asking for an explanation and information on the source of the cash from the taxpayer, adds Jain.....

However, according to tax experts, in the RBI statement, redemption should be read as exiting at the time of scheduled maturity, whereas transfer should be read as premature withdrawal any time before maturity. Accordingly, “After the maturity of eight years, the entire gains are exempted or tax free. But if the SGBs are redeemed after the lock-in period of five years and before the maturity period of eight years, the gains accumulated on the redemption of SGBs will be long-term capital gains (LTCG) and will be taxed at 20 percent with indexation benefit,” said Deepak Jain, chief executive, TaxManager.in, a tax e-filing and compliance,

The central Board of Direct Taxes has just added four new conditions that make income-tax filing mandatory..

Adding more to this list of conditions, Central Board of Direct Taxes (CBDT) issued a notification dated 21 April, 2022 adding four new conditions, which makes it mandatory to file ITR. New condition notified by CBDT comes into effect from 21 April, 2022. “The applicability of this notification comes with immediate effect since the time it is published in the official gazette. It means that if the conditions mentioned in the notification published are met then the assessee is required to file the income tax return with complete disclosures under section 139 of Income Tax Act for the financial year 2021-22 or assessment year 2022-23,” said Deepak Jain, chief executive, TaxManager.in. Let’s look at these four new rules...

As we enter 2022-23 (FY23), remember April is a good time to look into your tax planning for the year ahead. For instance, take steps to save on tax deducted at source (TDS) on fixed deposits or exemption from filing income-tax return (ITR).

Deepak Jain, chief executive officer, TaxManager.in, says, “Forms 15G and 15H are self-declaration forms submitted by an assessee to the bank, requesting not to deduct TDS on interest income since their income is below the basic exemption limit in the new fiscal year.” Note a taxpayer can avail of such benefit only if the tax on his/her total income is nil. He/she can do so by furnishing a declaration in Form 15G/15H, along with a valid PAN...

REC (formerly Rural Electrification Corporation) launched a new series (XVI) of 54EC Capital Gains Tax Exemption bonds on April 1. Investing in these bonds allows a person to claim tax exemption under Section 54EC on long-term capital gains arising from the transfer of a tract of land or building. The National Highways Authority of India will not issue these bonds.

These bonds enjoy the highest rating. Deepak Jain, chief executive, TaxManager.in, a tax e-filing and compliance management portal, says, “Apart from enabling investors to enjoy tax exemption from long-term capital gains, these bonds, which are ‘AAA’-rated, also offer safety.” The money is yours once the lock-in period ends...

The Central Board of Direct Taxes (CBDT) has notified the new ITR forms—ITR-1 to ITR-6—for Assessment Year 2022-23 to file return of income for Financial Year 2021-22

ITR 1 Form or SAHAJ is for salaried individuals having total income of up to Rs 50 lakh for the financial year 2021-22. Remember, salary also includes pension income. “There is one addition in the ITR Form 1 that requires you to disclose the source of your pensions like Central government, State government or any other, but it will not make any difference in the computation of the taxable income,” said Deepak Jain, Chief Executive of TaxManager.in, an tax e-Filing and compliance management portal...

The Central Board of Direct Taxes (CBDT) has notified the income tax return(ITR)forms for FY 2021-22 (Assessment Year 2022-23).

Deepak Jain, chief executive, TaxManager.in, a tax efiling and compliance management portal, said, “As these forms are quite elaborate, their early notification will give assessees more time to get the documentation and paperwork ready, and hence make complete disclosures while filing their returns...

If you are a tax payer, March 31 is relevant for you to complete a few important things before that date.

The ongoing Financial Year 2021-22 is coming to an end on March 31, 2022. Unlike 31 December, which is widely celebrated across the world as end of a year and people welcome the new year, many people don’t even care if it’s 31st March—end of the financial year. But if you are a tax payer, March 31 is very relevant for you. Make sure as an assessee you complete a few important things before March 31...

Deepak Jain, chief executive, TaxManager.in, says, “If an assessee misses this deadline, he/she may receive a show-cause notice for undisclosed income. He/she will also have to pay a penalty and interest and will be deprived of certain benefits that come with meeting the

Rent paid to family members

Suppose that you live in your parental house. Can you pay rent to your parents and claim HRA benefit? Deepak Jain, chief executive, TaxManager.in, says, “Yes, you can. The only condition is that, according to the ownership documents, you should not be the owner or the co-owner of the house. Moreover, neither your spouse nor a minor child should be the legal owner...

With the advance tax deadline just a few days away, try to pay on time. A delay will mean paying interest of 1 per cent from the due date till the date the tax return is filed

You may agree that paying taxes is the most annoying part of earning and financial growth; the more you earn, the bigger the amount of tax outgo. But as the famous American sociologist, theorist, and empirical researcher James Samuel Coleman said, "The point to remember is that what the government gives, it must first take away. " Therefore, as financial year 2021–22 is coming to an end, make sure you clear your advance tax liability. The last date for paying advance tax is March 15 of the assessment year...

Assessees, other than individuals or HUFs, need to have a valid tax deduction account number to deduct and deposit TDS.

Deepak Jain, chief executive, TaxManager.in, a tax e-filing and compliance management portal, says, “Individual or HUF assessees only need a valid permanent account number to deduct and deposit TDS...

n such a case when redemption happens on due dates after 5 years, will there be tax on gains? “If the SGB Bonds are redeemed ( on stock exchange) after the lock-in period of 5 years and before the maturity of 8 years, Capital Gains Tax is applicable on the profits earned on SGB Bonds. But yes, Govt of India should come out with proper clarification on tax treatment on the Capital Gains earned on SGB Bonds redemption (after 5 years),” says Deepak Jain, Chief Executive, TaxManager.in

Even before the end of 5th year or 8th year, the bonds are allowed to be traded on stock exchanges, if held in demat form. It means they are transferable to any other eligible investor.

When sold on the stock exchange, the indexation benefit can be availed by investors. “If SGB are redeemed in less than three years of holding then gains are taxable as per the investor’s income tax slab rates. Long Term Capital Gain Tax will be applicable if SGB withholding period is more than three years, the gains are taxable under LTCG at 20% tax rate with indexation benefit. However, do note that if indexation benefit is not opted then 10% tax rate will be applicable,” adds Jain...

Get PAN and TAN

The amended provisions allow the allotment of permanent account number (PAN) and Tax deduction and collection Account Number (TAN) to LLPs alongside the certification of incorporation. Earlier, there was no provision for the automatic allotment of PAN and TAN at the time of incorporation. Deepak Jain, chief executive, TaxManager.in, says, “Until now, one had to apply for PAN and TAN separately. It was not a part of the incorporation process. This will make the process of obtaining PAN and TAN easier, and speed up the process.”

In the case of companies, PAN and TAN can be applied for at the time of incorporation, under SPICe+, which is an initiative of the MCA, where at the time of applying for incorporation, all other compliance registrations like the goods and services tax, PAN, TAN, along with support in opening bank accounts is provided...

Interest income is taxable It Is Not Meant For Aggressive Returns SGBs offer capital appreciation as well as government-guaranteed interest payment. However, do note that the interest on the bonds is 2.5 per cent, so one should not expect aggressive or high returns.

Invest In A Limited Quantity SGBs are a way to invest in gold without having to face the difficulties that come with investing in physical gold. “In your investment portfolio, SGBs should not be more than 5-8 per cent of the total investments. Looking at the current political and economic scenario, including the Russian and Ukrainian War, since the equity-driven market is choppy, it is advisable to invest some part of your wealth in SGBs for assured returns along with capital appreciation,” says Deepak Jain, CEO, TaxManager.in, a tax e-filing and compliance management portal.

Consider The Tax Involved Unlike various other investments that come with tax benefits, interest earned on SGBs are taxable. “The interest earned from SGBs is treated as ‘income from other sources’ and taxed at the applicable income tax rates as per the tax slab the investor falls in. But no TDS (tax deducted at source) is deducted on the interest earned on SGB,” adds Jain. Long-term capital gains tax of 20 per cent with indexation applies if you hold the SGB for more than three years. (The bond’s maturity is eight years.) If you redeem only after the bonds mature, “no capital gains tax is applicable,” adds Jain...

Interest income is taxable The interest income from SGBs is taxable. Deepak Jain, chief executive, TaxManager.in, a tax e-filing and compliance management portal, says, “The interest earned on SGBs is treated as income from other sources and taxed at the applicable slab rate.” No tax deducted at source is deducted on interest. Capital gains from SGB is taxed if the investor exits earlier. Capital gains is treated as long term if the holding period is more than three years. Long-term capital gains is taxed at 20 per cent with indexation benefit and at 10 per cent if indexation benefit is not opted for. Short-term capital gains is taxed at the slab rate...

The draft direct tax code, if implemented in its current form, promises to be a game changer for individual taxpayers as well as for personal financce

To aid taxpayers, several websites have also mushroomed which offer useful tools for e-filing. Some of these are taxshax.com, paisawaisa.com, etaxesindia.com, sinewave.co.in, taxsmile.com and taxspanner.com...