An Income Tax Return (ITR) is a form that enables a taxpayer to declare his income, expenses, tax deductions, investments, taxes, etc. The Income-tax Act, 1961 makes it mandatory for a taxpayer to file an income tax return under various scenarios. However, there may be various other reasons to file an income tax return even in the absence of requisite income, like carrying forward losses, claiming an income tax refund, for availing the VISA, loan from banking institutions, term Insurance, etc.E-filing refers to the process of filing an Income Tax Return (ITR) online, using the Internet. By accessing the new income tax portal using PAN-based login credentials, individuals can take advantage of a range of features that simplify the tax filing process. The Income Tax Department provides the facility for e-filing an income tax return. Before discussing the steps involved in e-filing an ITR, it is essential for a taxpayer to keep the following documents/information readily available for e-filing their ITR.PAN and AadhaarBank StatementsForm 16Donation receiptsStock trading statements from the broker platformInsurance policy paid receipts related to life and healthBank account information linked to PANAadhaar registered mobile number for e-verifying the returnInterest certificates from banksHowever, you can e-file your ITR on Cleartax by just adding your PAN.

The Government of India collects several general and cess taxes to fund several welfare projects and social programs. They use the general taxes to fund any sort of government-run development activity. However, collections from cess on tax go towards funding specific improvement programs only.  Read on to know about what is cess tax and what are its purposes!What is Cess on Income Tax?The Government of India imposes a cess on income tax to raise funds for specific purposes. For instance, cess on road and infrastructure tax is used to fund the maintenance of roads and other infrastructures. However, these are not regular revenue sources as the government can discontinue them once the purpose of funding a particular project gets fulfilled.Usually, the government imposes this tax to develop different sections of our economy or to fulfil specific social causes.

It’s time to take taxes off your mind because filing with Cleartax is easier than ever! Here is a step-by-step guide on filing your ITR (Income Tax Returns) on Cleartax for the financial year 2023-24.How to File ITR? – Steps to e-File Your ITRITR e-Filing – Documents RequiredTo begin, gather the following documents to pace up the process:PANAadhaarBank account detailsForm 16Other Income informationInvestments detailsLoginLogin to your Cleartax account and click on ‘Start Filing’.Link Your PANLinking your PAN allows us to submit your return to the income tax department. If you are filing with us for the first time, you need to link your PAN by entering your PAN, Date of Birth, and the OTP received on your registered mobile number. You can verify the OTP using either your 'Aadhaar registered mobile number' or ‘IT Department registered mobile number.’Pre-fill Your Personal InformationIf you have previously filed with Cleartax and your PAN is already linked, you will directly see the autofill screen. To pre-fill your information from the income tax department, you will need to complete another OTP verification. This OTP verification is to capture all your personal information and income details in your income tax return with maximum security of your data.If you choose the 'IT Department' option, you will need to enter two OTPs, one sent to your mobile number and the other to your email.Too many OTPs can seem a lot of effort, but it is totally worth it! Most of your information will be auto-filled. This saves you nearly 2 hours of your time that would have been spent manually entering and correcting details.

Tax assessment is an integral part of the Indian taxation system, ensuring that taxpayers contribute their share of tax and fulfil necessary obligations. In cases where a taxpayer fails to file his/her income tax return, Section 144 of the Income Tax Act allows Assessing Officers to assess tax liability by following the Best judgment assessment process.In this article, we will guide you with all the necessary details regarding Section 144 and how the AO offers his best judgement assessment based on your circumstances.What Is Section 144 Of Income Tax Act?Section 144 of the Income Tax Act 1961 deals with the assessment of a taxpayer that is carried out by the Assessing Officer (AO) as per his best judgement and based on all relevant information gathered. Such assessments are generally done in cases where any taxpayer fails to comply with the requirements of other sections of the act, and will be discussed in detail. Best Judgement Assessment In Income TaxAs per the Income Tax Act, a best judgement assessment signifies the assessment performed by an assessing officer with specific knowledge of an assessee’s financial circumstance. If a taxpayer is unable to produce necessary documents or fails to file tax returns, the taxation authorities might initiate a best judgement assessment to determine his/her tax liability.There are certain conditions that the assessing officer considers before applying the best judgement assessment. It helps to ensure the judgement is fair, unbiased and accurate.

The income tax department takes tax filings very seriously. It is known to take strict and prompt action against any wrongdoers; in just the month of July 2023, the department issued 1 lakh+ notices to taxpayers suspected of underreporting or misreporting their income in their tax filings. Under Section 133 (6) of the Income Tax Act, notices may be sent to any taxpayer who filed suspicious income tax returns. Have you received such a notice in your mail? Read along to know everything about Section 133 (6), including its provisions, time limit, case laws and notices and learn how to file a proper response. What Is Section 133 (6) Of Income Tax Act?Section 133 (6) empowers certain persons in the income tax department to order any taxpayer to furnish information and evidence for tax-related enquiries and proceedings. The act grants investigative powers to assessing officers and other department officials to demand information through notices. Such notices can be sent to taxpayers for reporting lower income or withholding sources of income. They can also be issued for claiming income tax deductions and exemptions wrongfully.

Amendment to Finance Bill 2023 scrapped the indexation benefit on debt mutual funds. They will now be taxed at investor’s slab rates. These changes will bring the taxation of specified mutual funds at par with fixed deposits. Read on to know how this move may impact you and everything about the taxation of debt mutual funds.What Are Debt Mutual Funds?Before discussing the changes, it is important to understand debt mutual funds and their current tax framework. Debt mutual funds are investment instruments which predominantly invest their funds in fixed-income securities like bonds, treasury bills, commercial papers, debentures, and other debt instruments.

New Tax Regime 2024: Check out here all the frequently asked questions about the new income tax regime for FY 2023-24 slabs, calculator, and deductions for salaried employees. Budget 2023 brought in many surprising changes to the new tax regime. In this article, we've addressed some key questions about these changes. What Are New Income Tax Slabs & Tax Rates Under Revised New Tax Regime?The tax slabs have been revised under the new tax regime. The new Income tax slabs under the new tax regime for FY 2023-24 (AY 2024-25) are:Total IncomeRate of Taxup to ₹3,00,000Nil₹3,00,001- ₹6,00,0005%₹6,00,001- ₹9,00,00010%₹9,00,001- ₹12,00,00015%₹12,00,001- ₹15,00,00020%₹15,00,001 and above30%Surcharge and Cess are to be added separately based on the taxable income over and above the tax rates mentioned above.What Is Surcharge Amount Under Revised New Tax Regime? Is That Change Applicable Only For Those With An Income More Than 5 Crores?Under the revised new tax regime, the surcharge rate has been reduced from 37% to 25%  for taxpayers earning income more than Rs 5 crores. Therefore, this surcharge change applies only to those who opt for the new tax regime and have an income of more than Rs 5 crores.The surcharge rates for various income levels are as under:Net Taxable Income limitSurcharge Rate on the amount of income tax Before Budget 2023After Budget 2023Less than ₹50 lakhsNilNilMore than ₹50 lakhs ≤ ₹ 1 Crore10%10%More than ₹ 1 Crore ≤  ₹ 2 Crore15%15%More than ₹ 2 Crore ≤  ₹ 5 Crore25%25%More than ₹ 5 Crore37%25%The New Income Tax Slabs Are Rs 3 lakh - 6 lakh With 5% Tax Rate, Rs 6 lakh- 9 lakh With 10%, etc.

To promote exports and attract foreign investment, the Government of India introduced Section 10AA under the Foreign Policy Act. However, it became fully functional in 2006, after which tax concessions were offered to specific businesses. On fulfilling certain conditions, Section 10AA of the Income Tax Act allows new businesses or units offering services in Special Economic Zones (SEZs) to enjoy income tax exemption and holidays. This zone is generally a part of the nation’s diverse business and trade legislation and is located within a nation’s borders. Here's more about Section 10AA of the Income Tax Act.Eligibility For Section 10AA DeductionEntrepreneurs, firms, companies, individuals and other categories of assessees can claim a deduction under Section 10AA. However, to claim a deduction under this section, SEZ units need to meet the following conditions or criteria:The entrepreneur should enrol within the provisions of Section 2(j) of the Special Economic Zone Act, 2005.The company should not have been established by relocating previously used plants or machinery. However, in certain cases, SEZ units can use second-hand machinery.The SEZ unit must commence its production on or after April 1, 2006.The SEZ unit should not be incorporated by reconstructing or splitting an existing business.If SEZ businesses have already reaped the deduction benefit under Section 10AA for 10 years, they are ineligible to claim this deduction. 10AA Exemption LimitThe amount of deduction available under this existing section is as follows:100% of the profit coming from export is entitled to a tax deduction for the first 5 consecutive years (1st to 5th year).50% of the export profit is entitled to a deduction for the next 5 years (6th to 10th year).50% of Export Profits (or) the amount credited to the SEZ Reinvestment Allowance reserve, whichever is lower (11th to 15th year)Section 10AA LimitTake a look at the following conditions that apply to the exemption amount under this section:Business owners of units in SEZs need to create a reserve account (Special Economic Zone Reinvestment Reserve Account) after claiming the deductions for the first 10 years.

Section 80IA of the Income Tax Act offers tax benefits to businesses operating in some specific sectors. Under this provision, you can exempt the tax levied on your business profits for a certain period depending on a business’s eligibility. This article will discuss the eligibility, exemption, applicability, and deduction of Section 80IA for the assessment year 2024-25.What is Section 80IA?Section 80IA of the Income Tax Act provides tax benefits to businesses that operate in infrastructure, power, telecommunication, and other specified sectors. This provision offers tax deductions and exemptions to encourage businesses to invest in the mentioned sectors. Investments in these sectors help our country's economic growth, thus, the Income Tax department encourages it by providing tax exemptions.80IA EligibilityYour business needs to meet the following criteria to be eligible for tax benefits under Section 80IA:Your business must be incorporated in India.

As per Section 147 of the Income Tax Act, 1961, the Income Tax Department has the power to reassess an individual’s previously filed income tax returns. The Assessing Officer could pick your income tax return for reassessment subject to some pre-defined criteria by sending a notice under section 148 for Income Escaping Assessment.What is Section 148?Section 148 of the Income Tax Act 1961 gives authority to the Assessing Officer to send notice to a taxpayer whose income has not been properly assessed. This implies that if the Assessing Officer suspects that a taxpayer has not disclosed complete income or has provided an inaccurate representation of it, officers can commence proceedings under this section.Section 148 Notice is a notice issued by the income tax officer to reassess the taxpayer's income tax return (ITR) if they disagree with the taxpayer's assessment and believe that some income has not been properly assessed.Finance Act 2022 introduced Section 148A, which requires the assessing officer to conduct an inquiry and give the taxpayer an opportunity to explain their case before issuing a notice under Section 148.The assessing officer must issue a notice to the taxpayer under Section 148A(b), providing information and adverse material suggesting that income has escaped assessment. The taxpayer can respond with their own material and evidence.In the 2021 budget, the government introduced Section 148A in the Income Tax Act. If the income tax officer has information that the taxpayer has undisclosed income for a specific assessment year, the officer must give the taxpayer a chance to provide an explanation before issuing a notice.