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You can claim exemption on cost of making new house habitable: Experts

Printed in Business Standard - Date – 29th April 2022

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, as applicable....

PAN, Aadhaar a must for cash transactions above Rs 20 lakh a year

Printed in Money Control - Date – 13th May 2022

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......

Five things to consider before you opt for premature withdrawal from sovereign gold bonds

Printed in Money Control – 16th May 2022

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, management portal.......

Deposited more than Rs 50 lakh in savings account in a single year? Filing ITR has become compulsory

Printed in Money Control - Date - 23rd April 2022

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...

Seniors need to submit Forms 12BBA, 15G, 15H to save on TDS: Experts

Printed in Business Standard - Date - 19th April 2022

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...

How investing in 54EC bonds can help you save tax on long-term gains

Printed in Business Standard - Date - 14th April 2022

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...

New income tax forms are out for new assessment year 2022-23. Find out which one you should use

Printed in MoneyControl.com - Date - 2nd April 2022

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...


New ITR forms need income disclosure from foreign retirement a/cs

Printed in Business Standard - Date - 2nd April 2022

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...


Why is March 31 an important date for taxpayers? Find out

Column by Deepak Jain - Printed in Financial Express - Date - 26th March 2022

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...


Not filed ITR yet? Face penalty or even jail term, say analysts

Printed in Business Standard - Date - 23rd March 2022

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 tax-filing deadline...


Are you paying rent to wife or parent? You can claim HRA exemption on it

Printed in Business Standard - Date - 16th March 2022

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...


March 15 Is The Last Date To Pay Advance Tax: Time To Clear Your Liability

Column by Deepak Jain - Printed in Outlook Money - Date - 12th March 2022

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...


It's time to deduct TDS if rent exceeds Rs 50,000, say analysts

Printed in Business Standard - Date - 11th March 2022

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...


Clarification on capital gains tax on early redemption of Sovereign Gold Bonds is required – Here’s why

Printed in Financial Express - Date - 9th March 2022

In 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...


Second amendment to LLP Rules will ease procedural burden: Experts

Printed in Business Standard - Date - 9th March 2022

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...


Three Things To Keep In Mind Before Investing In RBI’s Sovereign Gold Bonds

Printed in Outlook Money - Date - 28th Feb 2022

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...


Tackle low liquidity in sovereign gold bonds by laddering, say analysts

Printed in Business Standard - Date - 1st March 2022

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...


What the Tax Code Means to you

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

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CBDT, tax tools make e-filing of I-T returns simpler

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...


You can still e-File your Tax Returns - Click here for CA Assistance