ITR filing: What are the new changes in tax laws that will come into effect from Sep 01?
New Delhi, Aug 30: Tomorrow, August 31, 2019, is the last day to file income tax return (ITR). If you still have not filed it do it on priority as the deadline would be extended.
"It has come to the notice of CBDT that an order is being circulated on social media pertaining to extension of due date for filing of IT Returns. It is categorically stated that the said order is not genuine. Taxpayers are advised to file returns within extended due date of 31.08.2019," the income tax department said on Twitter.
Who
should
file
Income
Tax
Returns?
The
government
mandates
that
individuals
who
earn
an
annual
income
of
over
Rs
2,50,000
must
file
a
tax
return
before
the
deadline
of
31
August.
DTC panel suggests cut in income tax, corporation tax
Documents
required
for
filing
ITR
a)
PAN
b)
Aadhaar
c)
Bank
account
details
d)
Form
16
e)
Investments
details
What
happens
if
you
file
your
ITR
late?
You
will
have
to
pay
a
late
fee
of
Rs
5,000
and
Rs
10,000
if
ITR
is
not
filed
by
31
August.
What
happens
if
you
do
not
file
your
ITR?
You
may
face
a
jail
term
from
three
months
to
two
years
for
not
filing
your
ITR.
If
the
income
tax
dues
are
over
Rs
25
lakh,
you
could
end
up
with
a
jail
term
of
up
to
7
years.
What are the new main changes in tax laws that will come into effect from September 1 onwards?
TDS
on
additional
payments
made
when
purchasing
immovable
property
If
you
are
buying
a
property,
you
will
have
to
include
the
payment
made
for
other
services
or
amenities
such
as
club
membership
fee,
car
parking
fee,
electricity
and
water
facility
fee
and
so
on
when
computing
the
amount
paid
for
the
property
for
the
purpose
of
deducting
TDS.
Earlier, the tax was deducted by the buyer from the payment made during the purchase of the property. However, other payments were usually deducted from the total consideration while computing TDS.
TDS
on
cash
withdrawals
Budget
2019
proposed
that
if
an
individual's
Cash
withdrawals
exceeds
Rs
1
crore
on
aggregate
basis
during
the
year
from
an
account
held
with
a
bank,
cooperative
bank
or
post
office
will
invite
levy
of
2
per
cent
TDS
from
September
1.
The
move
is
aimed
at
discouraging
large
cash
transactions
and
also
to
promote
a
less
cash
economy.
For this, a new section 194N has been inserted in the Income Tax Act which defines that TDS will be levied at the rate of two per cent on cash withdrawals made from the account.
TDS
on
payments
made
to
contractors
and
professionals
From
September
1,
t
has
been
made
mandatory
for
individuals
and
HUFs
making
a
payment
to
contractors
and
professionals
exceeding
Rs
50
lakh
per
year
will
also
be
required
to
deduct
TDS
at
the
rate
of
5
per
cent.
For this purpose, a new section 194N has been inserted in the Income Tax Act .
TDS
on
net
maturity
proceeds
of
taxable
life
insurance
policy
From
September
1,
if
your
life
insurance
maturity
proceeds
are
taxable,
then
TDS
will
be
deducted
at
the
rate
of
five
per
cent
on
the
net
income
portion.
According to Section 10 (10D) of Income Tax Act, maturity proceeds received from a life insurance policy are exempt from capital gains tax. But the same benefit will not be applicable for policies where the annual premium exceeds 10% of the sum assured. Prior to April 2012, this limit was 20%.
PAN-Aadhaar
link
As
per
rules
existing
prior
to
changes,
PAN
would
have
become
invalid
if
not
linked
with
Aadhaar
by
a
specified
deadline.
However,
Finance
Minister
Nirmala
Sitharaman
in
her
maiden
Budget
proposed
that
PAN
will
now
become
inoperative
but
not
invalid
if
not
linked
with
Aadhaar
by
the
specified
deadline.
This
is
nothing
but
to
protect
the
validity
of
previous
transactions
done
using
the
PAN.
PAN
and
Aadhaar
Interchangeability
The
government
proposed
that
the
PAN
and
Aadhaar
card
can
be
used
interchangeably
to
file
income
tax
returns.
However,
Aadhaar
can
be
quoted
in
lieu
of
PAN
only
for
certain
prescribed
transactions.
The
interchangeability
of
Aadhaar
and
PAN
in
ITR
filing
will
come
into
effect
from
September
1.