Taxation | Business Upturn

Is GST Portal Working Today, April 21? Know More

Aditya Bhagchandani — Tue, 21 Apr 2026 04:33:04 +0000

The GST portal is back up and working normally on Tuesday, April 21, with a real-time status check confirming the website is operational as of 9:55 AM IST. Response time is showing at 318 milliseconds — healthy and functional — with zero user reports of issues in the last 60 minutes. The status monitor’s verdict is unambiguous: “GST Portal — Website is working. Working normally. Service appears to be operational.”

The portal that crashed completely on Monday, April 20 — the statutory deadline for filing GSTR-3B for the March 2026 tax period — is now accessible. But the question that matters most to the hundreds of thousands of taxpayers and chartered accountants who could not file yesterday remains unanswered.

Has the government announced an extension? No. Not yet.

The Portal Is Up. The Extension Question Is Not Resolved.

The status check shows 67 users reported issues in the last 24 hours — a number that reflects Monday’s widespread outage tapering off as the portal restored service. In the last 60 minutes, zero reports. The server is responding. The filing interface should be accessible.

What is not accessible is any official notification from CBIC, GSTN or the Ministry of Finance confirming that taxpayers who could not file on Monday due to the portal failure will be protected from late fees. Business Upturn has checked the official helpdesk and official handles — no extension notification has been issued at the time of writing. The CBIC official channels, the GSTN Twitter handle and the GST portal’s own notification section carry no announcement of an extended deadline for GSTR-3B March 2026.

This creates a deeply uncomfortable situation for taxpayers. The portal is working now. But the deadline was yesterday. Late fees of ₹50 per day for returns with tax liability and ₹20 per day for nil returns technically began accruing from today, April 21, for anyone who did not file by end of day Monday — regardless of the reason for non-filing.

What This Means for You Right Now

If you were unable to file your GSTR-3B on Monday due to the portal outage, the most important thing you can do right now is file immediately — today, Tuesday April 21 — while the portal is confirmed working. The longer you wait, the more late fee exposure accumulates.

Filing today does not waive your right to a late fee exemption if the government subsequently issues a retroactive extension notification — which, based on precedent from the May 2022 GST portal outage when CBIC issued notification 05/2022 extending the deadline and waiving late fees after a similar crash, is the most likely official response when it comes. But it does reduce the number of days for which late fees could theoretically apply if no extension is ever issued.

Document your Monday filing attempts — screenshots, error messages, timestamps — and keep them. If a retroactive extension or late fee waiver is issued, this documentation demonstrates your good-faith attempt to comply within the original deadline period.

The Government Must Still Respond

The portal being restored does not resolve the fundamental question of fairness. Taxpayers across India attempted to file on Monday and could not — through no fault of their own, on a government-operated system that the government’s own contractor Infosys is responsible for maintaining. The system failed. The deadline passed.

The chartered accountant community — which filed formal complaints tagging CBIC, GSTN, Infosys GSTN and Finance Minister Nirmala Sitharaman throughout Monday — has not received an official response. The Gujarat State Tax Bar Association, CA Avinash Khandelwal, Advocate V K Jain, CA Abhas Halakhandi and dozens of other professionals made public representations throughout the day. None have been officially acknowledged with an extension announcement.

CBIC has the power to issue a retrospective extension notification under the GST Act. It has done so before. The expectation among the CA community is that such a notification will come — but every hour it does not, taxpayers who managed to file despite the portal difficulties on Monday wonder whether they were penalised for the efficiency of the government’s critics, while those who gave up rightly are penalised for the failure of the government’s system.

File today. Monitor the official CBIC and GSTN channels. And wait for the notification that the precedent says should come.

Disclaimer: This article is for informational purposes only and does not constitute tax or legal advice. No official extension has been confirmed at the time of writing. Readers are advised to consult their chartered accountant and monitor official CBIC communications for the latest guidance.

GSTR-3B Deadline Extension After GST Portal Crash: Has the Government Announced Anything Yet?

Aditya Bhagchandani — Tue, 21 Apr 2026 04:29:17 +0000

The GST portal crashed on Monday, April 20 — the statutory deadline for filing GSTR-3B for the March 2026 tax period — leaving hundreds of thousands of taxpayers and chartered accountants unable to complete their returns through the day. The CA community demanded an extension loudly and publicly. The question every taxpayer is now asking on Tuesday is simple: has the government announced an extension?

The answer, as of Tuesday morning, is no. No official extension notification has been issued.

No Notification Issued — What Is Confirmed

Business Upturn has checked the official GSTN social media handles, the CBIC official communication channels and the GST helpdesk. No notification, circular or official announcement extending the GSTR-3B deadline for March 2026 has been issued by CBIC, GSTN or the Ministry of Finance at the time of writing. The helpdesk and official handles have not posted any extension-related communication.

This means the April 20 deadline technically remains in force. Taxpayers who were unable to file due to the portal outage are now in a position where late fees — ₹50 per day for returns with tax liability and ₹20 per day for nil returns — could begin accruing from April 21 onward unless an extension is retroactively announced.

What the CA Community Experienced on April 20

Chartered accountants and tax advocates urged the government to extend the deadline for filing GSTR-3B returns for the March 2026 tax period, citing widespread technical glitches on the GST portal that disrupted filing on the due date.

Advocate V K Jain posted on X that he was facing major issues on the GST portal since morning — login not working, captcha not loading, frequent auto logout, unable to save GSTR-3B, and payment and filing working only after multiple attempts.

Chartered Accountant Abhas Halakhandi stated that the GST portal had not been working properly for the last several days and requested authorities to extend the due date of March 2026 GSTR-3B at the earliest, tagging Infosys GSTN and CBIC in the post. The Gujarat State Tax Bar Association also publicly demanded an extension through its official handle.

The issues reported went beyond slow loading — the GST portal showed a communication error while trying to connect with the system, with possible causes listed as server issues or backend application failure. OTPs were not being delivered, challans could not be paid and returns could not be saved across large parts of the filing day.

The Precedent That CAs Are Pointing To

The chartered accountant community’s demand is backed by clear precedent. In May 2022, when taxpayers faced technical glitches on the GST portal, the government extended the due date for GSTR-3B for the month of April 2022 till May 24 via CBIC notification number 05/2022, and directed Infosys for early resolution of the problem. That extension was announced by CBIC in a late-night tweet after the portal issues became undeniable. CBIC had confirmed that a technical glitch had been reported by Infosys in the generation of GSTR-2B and auto-population of GSTR-3B on the portal, and Infosys had been directed by the government for early resolution.

The 2022 precedent is directly analogous to Monday’s situation — confirmed nationwide portal failure on a GSTR-3B deadline day, mass CA complaints, formal demands to CBIC and GSTN. The government granted an extension then. The CA community is asking why a similar response has not been forthcoming this time.

What You Should Do Right Now

Until an official notification is issued, the safest approach is to attempt filing again today — Tuesday April 21 — to check whether the portal has stabilised. GSTN’s standard advisory in cases of portal issues is to retry reloading the page and performing the activity again, and to raise complaints at the Grievance Redressal Portal at selfservice.gstsystem.in or contact the helpdesk at 1800-103-4786 if the problem persists.

Document your failed filing attempts from Monday with screenshots and timestamps. Keep records of any error messages received. This documentation will be essential if late fee waiver requests need to be made or if a retroactive extension notification specifies that late fees will not apply for the period of the outage.

Monitor the CBIC official Twitter handle, the GSTN handle and the official GST portal for any notification announcement. CA associations including ICAI circulate official extension notifications extremely rapidly through their member networks — your professional network is the fastest route to confirmation when an announcement is made.

Business Upturn will update this report the moment any official extension notification is issued.

GST Portal Down for Everyone on GSTR-3B Deadline Day

Aditya Bhagchandani — Mon, 20 Apr 2026 13:56:39 +0000

The GST portal — gst.gov.in — is down for everyone as of Monday, April 20, 2026, with a server status check confirming the site is returning no response and showing zero availability. The timing could not be worse. Today is the deadline for filing GSTR-3B for the March 2026 tax period, and hundreds of thousands of taxpayers and chartered accountants across India are attempting to file their returns with the clock running out.

A server status check tool has confirmed: “Gst.gov.in is DOWN for everyone. It is not just you. The server is not responding.” The response time on the check returned as “no response” — meaning the portal is not partially degraded or slow. It is completely inaccessible.

What This Means for You

If you have been trying to file your GSTR-3B today and getting error messages, blank screens, timeouts or portal unavailability — the problem is not your internet connection, your browser or your computer. The GST portal’s server itself is down and not responding to any requests. This is a confirmed nationwide outage affecting all users simultaneously.

The server status tool shows the site has been down for approximately one minute at the time of the check, but given the volume of complaints that have been building among chartered accountants since the morning — with CAs reporting slow and unresponsive portal behaviour since the past couple of days — the actual duration of disruption is considerably longer than the latest status check window suggests.

The GSTR-3B Deadline Context

April 20 is the statutory due date for monthly GSTR-3B filers covering the March 2026 tax period. GSTR-3B is the simplified summary return through which taxpayers report their GST liabilities and discharge them. Missing the deadline attracts late fees — ₹50 per day for returns with tax liability and ₹20 per day for nil returns — making the portal’s complete failure on deadline day a serious issue for businesses and tax professionals across India.

The chartered accountant community has been raising the alarm throughout the day. Gujarat-based CA Deep Koradia earlier told ET Wealth Online that many taxpayers and professionals had been experiencing slow portal response for the past couple of days ahead of the deadline. Today’s complete server failure confirms that the underlying infrastructure issue has now crossed from degraded performance to full unavailability.

What the Government Must Do

The situation is now unambiguous. The GST portal is confirmed down for everyone on the single most important filing deadline of the month. The government has two immediate obligations — restore the portal as quickly as possible, and announce an official extension of the GSTR-3B deadline through a formal notification.

The precedent for such extensions exists and has been used before. Under Section 168 of the CGST Act, the Commissioner has the power to extend GSTR-3B filing deadlines through notification. Previous extensions have been granted during portal outages, natural disasters and during the COVID-19 pandemic. Today’s confirmed nationwide server failure is precisely the kind of documented, verifiable disruption that warrants an immediate extension announcement — taxpayers cannot be penalised for a government system failure.

What to Do Right Now

Document your filing attempt with screenshots of the error messages or the blank portal screen, including timestamps. These screenshots serve as evidence that you attempted to file within the deadline period in case any penalty dispute arises while awaiting an official extension notification.

Monitor the official GSTN Twitter handle and the gst.gov.in website for restoration updates and any official extension announcement. The Institute of Chartered Accountants of India typically circulates government notifications on deadline extensions very rapidly through its network once issued. Your CA association and professional network will be the fastest channels for official extension news when it arrives.

Do not attempt repeated rapid reloads of the portal — when the server is completely down, repeated requests add to the load and can slow restoration. Try again after 15 to 20 minutes and check the server status tool again before attempting to file.

Business Upturn will update this report as the portal status changes and if the government announces an extension of the GSTR-3B deadline.

Disclaimer: This article is for informational purposes only and does not constitute tax or legal advice. Readers are advised to consult their chartered accountant for guidance specific to their filing obligations and to monitor official GSTN communications for deadline extension announcements.

GST Portal Down on GSTR-3B Deadline Day? Chartered Accountants Demand Extension as Filing Issues Persist

Aditya Bhagchandani — Mon, 20 Apr 2026 12:13:38 +0000

The GST portal is experiencing significant technical issues on Monday, April 20, 2026 — the deadline day for filing GSTR-3B for the March 2026 tax period — leaving thousands of taxpayers and chartered accountants unable to complete their returns with the clock running out. A large number of CAs across India have raised the alarm and are demanding an official extension of the deadline from the government.

If you are trying to file your GSTR-3B today and the portal is throwing errors, throwing blank screens or simply not loading, you are not alone. The problem appears to be widespread and has been building for the past couple of days.

What Is Happening on the GST Portal

Gujarat-based Chartered Accountant Deep Koradia told ET Wealth Online that many taxpayers and tax professionals have been experiencing slow response from the GST portal since the past couple of days ahead of the March 2026 GSTR-3B filing deadline. On deadline day itself, the issues have become acute with users reporting outright inability to file.

The error messages being reported by affected users include server errors indicating the system is unable to fetch data from the backend application, data corruption errors during transmission from browser to the GST system, and network connectivity interruption messages between the user’s system and the GST server. These are server-side failures rather than user-side errors — meaning the problem is with the GST portal’s infrastructure, not with individual taxpayers’ computers or internet connections.

What Is GSTR-3B and Why April 20 Matters

GSTR-3B is a simplified summary return that taxpayers file to report their GST liabilities for a specific tax period and discharge those liabilities. It is one of the most important compliance filings in the GST ecosystem — monthly filers are required to submit it for every tax period without exception. The due date for monthly filers is the 20th day of the month following the tax period, which makes April 20 the statutory deadline for the March 2026 return.

Missing the GSTR-3B deadline carries consequences. Late filing attracts a late fee of ₹50 per day for returns with tax liability and ₹20 per day for nil returns, subject to a maximum cap. More significantly for businesses with regular compliance obligations, a late GSTR-3B can create downstream complications for input tax credit claims and reconciliation with GSTR-2B data.

When the portal itself is down on the deadline day through no fault of the taxpayer, the demand for an extension is not merely a convenience request — it is a matter of basic fairness. Taxpayers cannot be penalised for a government portal’s technical failure.

What CAs Are Demanding

The chartered accountant community, which manages GST compliance for the majority of India’s registered taxpayers, is collectively demanding that the government extend the GSTR-3B deadline for March 2026 given the documented portal issues. The precedent for such extensions exists — the government has previously issued notifications extending GSTR-3B deadlines during technical disruptions and during events such as natural calamities and the COVID-19 pandemic.

The government has the power to extend the due date for filing GSTR-3B through official notification. Whether GSTN or the Ministry of Finance will respond to today’s widespread filing failure with an extension announcement remains to be seen. Given the volume of complaints and the visibility of the issue among the CA community — which has organised social media campaigns and official representations on such issues in the past — an official response is likely to be forthcoming if the portal does not stabilise quickly.

What to Do If You Cannot File Today

If the portal is returning errors, document your attempts with screenshots including timestamps — these serve as evidence that you attempted to file within the deadline period in case a penalty dispute arises later. Keep the screenshot showing the specific error message received.

Try filing at off-peak hours — early morning or late night access often has better server response than mid-day and evening windows when simultaneous user load is highest. Try different browsers — Chrome, Firefox and Edge can behave differently depending on the specific error type. Clear your browser cache and cookies before attempting again.

Monitor the official GST portal’s Twitter handle and the GSTN website for any official communication about the technical issues or an extension announcement. The CA associations — including ICAI — typically circulate official extension notifications rapidly when they are issued.

Business Upturn will update this report if the government announces an extension of the GSTR-3B deadline.

Disclaimer: This article is for informational purposes only and does not constitute tax or legal advice. Readers are advised to consult their chartered accountant or tax advisor for guidance specific to their filing obligations.

Religare faces Rs 140.20 crore tax demand from income tax authority

Kinjal — Wed, 18 Mar 2026 20:04:01 +0000

Care Health Insurance Limited (CHIL), a material subsidiary of Religare Enterprises, has been issued two tax demand orders totalling ₹140.20 crore by the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2) Mumbai. The orders, dated 17 March 2026, pertain to the assessment years 2023-24 and 2024-25. CHIL contends that the tax demand and applicable interest have been incorrectly computed by the authority. Consequently, the company is in the process of filing a rectification application. According to CHIL, once the rectification order is passed, the revised tax demand, including interest, is expected to be approximately ₹96 crore.

The tax demand arises from several disallowances made by the assessing officer, including provisions for claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER), unsettled claims, non-deduction of TDS on certain expenses, and marketing and advertisement expenses deemed inadmissible under Section 37(1) of the Income-tax Act, 1961. CHIL notes that these issues have previously been adjudicated in its favour by various judicial forums, including the Delhi High Court and the Income Tax Appellate Tribunal.

CHIL plans to appeal against the orders before an appropriate forum, based on advice from tax consultants. The financials of CHIL are consolidated with those of Religare Enterprises, the listed entity.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

This article is written by Kinjal and reviewed by News Desk before publication.

GSTR 9/9C Extension 2025: Will the Ministry Blink at the Last Minute?

Aditya Bhagchandani — Wed, 31 Dec 2025 12:07:08 +0000

Wednesday, December 31, 2025 | 5:30 PM IST – As the countdown to midnight begins, the Indian tax community is locked in a high-stakes waiting game. Despite numerous representations and trending social media campaigns, the Central Board of Indirect Taxes and Customs (CBIC) has yet to issue an official notification extending the due date for GSTR-9 and GSTR-9C for FY 2024-25 beyond today, December 31, 2025.

The Current Status (Live Update)

Due Date: 31st December 2025 (Today)
Extension Status: Not yet announced.
Late Fees from Jan 1: ₹200 per day (subject to turnover caps).
Key Conflict: While the MCA extended ROC filings yesterday (to Jan 31), the Finance Ministry has kept GST deadlines firm.

Why Professionals are Demanding a 31st Jan Extension

Tax experts argue that the compliance window has been “procedurally squeezed” due to three major factors:

Notification 13/2025-CT: This late-year amendment introduced extreme granularity in Input Tax Credit (ITC) reporting, requiring rule-wise breakups that weren’t part of the original accounting setup.
Auto-Population Glitches: The Bombay Chartered Accountants Society (BCAS) flagged that Table 8A logic has fluctuated repeatedly between GSTR-2A and 2B, making accurate reconciliation a “moving target.”
The Audit Crunch: Since many Tax Audits were only completed by mid-November, accountants have had less than 45 days to finish the complex GSTR-9C conciliations.

Expert Insight: “Providing a last-minute extension is a double-edged sword,” says a senior tax consultant. “While it offers relief, it punishes those who worked through the night to comply, and it draws the ire of the Judiciary.”

The “Judicial Shadow” over Last-Minute Extensions

One reason the Ministry might be hesitant this year is the recent stern stance taken by the Courts:

Punjab & Haryana High Court: Recently criticized the CBDT for “administrative laziness” regarding last-minute extensions, suggesting that deadlines should be predictable, not reactive.
Gujarat High Court: Has previously noted that constant extensions undermine the sanctity of the tax calendar.

However, the BCAS has submitted two formal representations (on Dec 11 and Dec 29), making it clear that the demand isn’t for “more time” but for “fair time” to handle the structural changes introduced in 2025.

2025 Filing Checklist: If No Extension is Granted

If the clock strikes midnight without a circular, here is your priority list:

File GSTR-9 First: Late fees start immediately at ₹200/day.
Payment of Dues: Ensure all liabilities discovered during reconciliation are paid via DRC-03.
Data Consistency: Ensure Table 8A reconciles with your GSTR-2B to avoid automated notices in Q1 2026.

ICICI Bank receives GST demand order of Rs 49.11 crore from West Bengal tax authorities

News Desk — Wed, 17 Sep 2025 03:29:46 +0000

ICICI Bank has informed the exchanges that it has received an order in appeal from the Additional Commissioner of Revenue (Appeals), West Bengal, raising a demand of approximately ₹49.11 crore under the West Bengal Goods and Services Tax Act, 2017.

The order, received on September 15, 2025, includes tax of ₹23.53 crore, interest of ₹23.24 crore, and penalty of ₹2.35 crore. The matter pertains to GST demand on services provided by banks to customers maintaining specified minimum balances in their accounts.

ICICI Bank noted that it has previously received show cause notices and orders on the same issue from various tax authorities and has already filed writ petitions challenging the notices. Since the cumulative amount involved in the matter has crossed the materiality threshold, the bank has made the disclosure under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR).

The bank added that it will take appropriate steps, including contesting the order through a further appeal within the prescribed timelines. It also clarified that the delay in disclosure was due to the time taken to evaluate the contents of the order.

The disclosure has also been shared with the New York Stock Exchange, SIX Swiss Exchange, Singapore Stock Exchange, and Japan Securities Dealers Association.

Disclaimer: This article is based on official exchange filings by ICICI Bank. It is provided for informational purposes only and should not be construed as investment advice. Readers are advised to consult certified financial advisers before making any investment decisions.

Income tax return filing date extended again, check new deadline here

News Desk — Tue, 16 Sep 2025 01:30:30 +0000

New Delhi, September 15, 2025 – In a late evening relief for taxpayers, the Central Board of Direct Taxes (CBDT) has once again extended the due date for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2025-26.

The ITR filing deadline, which was originally set for 31st July 2025 and later extended to 15th September 2025, has now been further extended by one more day. Taxpayers can now file their returns till 16th September 2025.

In its official statement, the CBDT said the extension was being provided to ease the compliance burden on taxpayers and confirmed that a formal order/notification will follow separately.

The extension applies to all taxpayers whose returns were due by 31st July 2025. The board, however, clarified that this is only a short relief and urged taxpayers to complete their filings at the earliest.

This comes as the second extension in less than two months, as many individuals and businesses had been facing challenges in completing their filings on time.

The announcement was made through a press release by V. Rajitha, Commissioner of Income Tax (Media & Technical Policy) and official spokesperson of CBDT.

GST reforms to cut costs in housing, empower MSMEs and artisans

Aditya Bhagchandani — Thu, 11 Sep 2025 07:53:54 +0000

The 56th GST Council meeting introduced significant rate reductions across a wide range of goods, with a clear focus on lowering costs for households, the housing sector, and small-scale enterprises.

Among the key changes, the GST rate on marble, travertine, and granite blocks has been slashed from 12% to 5%, a move expected to ease construction costs in housing projects, especially across states like Rajasthan, Gujarat, and Karnataka. Similarly, sand lime bricks and stone inlay work will now attract 5% GST instead of 12%, helping bring down rural housing expenses.

In household goods, aluminium and copper articles as well as milk cans will see GST cut to 5% from 12%. The same reduction has been extended to brass kerosene pressure stoves, providing much-needed relief to rural and low-income families dependent on basic cooking tools.

The reforms also extend to artisans, with handicrafts made of brass, copper, and aluminium brought under the 5% GST slab. This is expected to boost demand, expand customer reach, and give a push to local artisans under the Make in India vision.

In the mining and logistics sector, the GST rate on multimodal transport of goods, including minerals such as iron ore, has been reduced from 12% to 5% with restricted credit. This is aimed at easing the cost of long-distance mineral movement.

Overall, the latest GST reforms are expected to significantly reduce input costs in housing, strengthen MSMEs, and provide a major boost to India’s handicraft and artisan community.

ITR filing deadline: Professionals seek extension amid repeated income tax portal issues – check reactions

News Desk — Wed, 10 Sep 2025 03:22:28 +0000

Chartered accountants, taxpayers, and professionals have taken to social media to highlight repeated glitches and downtime on the Income Tax e-filing portal, urging the government to extend the September 15, 2025 deadline for non-audit cases. Many users flagged scheduled maintenance, slow processing, and login errors, calling it unfair given the heavy compliance burden and delayed release of ITR utilities.

Kamlesh Sharma wrote: “Income Tax Return Due Dates Should be extended because of late release of forms and glitches on portal. Sincere request to department”

@IncomeTaxIndia @PMOIndia @FinMinIndia @nsitharamanoffc
Income Tax Return Due Dates Should be extended because of late release of forms and glitches on portal.
sincere request to department pic.twitter.com/vfH0vJvfTl

— Kamlesh Sharma (@Kami5117) September 9, 2025

Rohit Jain said: “Income tax portal thak gya hain.. 3 se 5 aaram karega… Tax Practice will tire most people soon if govt continue to treat everyone like this. Most people will develop several health issues.”

Income tax portal thak gya hain..
3 se 5 aaram karega…
Tax Practice will tire most people soon if govt Continue to treat everyone like shit.
Most people will develop several health issues.#Extend_Due_Date_Immediately

— Rohit Jain (@rohitjain2021) September 9, 2025

CA Hiiren Jogii posted: “Scheduled Maintenance Activity of Income Tax Portal when just 5 days are remaining for ITR filing for Non Audit cases… Seriously… Is this the level of harassment… Incredible India.. Shame on CBDT.”

@FinMinIndia @nsitharaman @theicai @PMOIndia @IncomeTaxIndia

Scheduled Maintenance Activity of Income Tax Portal when just 5 days are remaining for ITR filing for Non Audit cases… Seriously… Is this the level of harassment… Incredible India.. Shame on CBDT… pic.twitter.com/VR8xMITNLn

— CA Hiiren Jogii (@HiirenJogii) September 9, 2025

PK Singh Author wrote: “Professionals sab jaag rhe aur income tax portal hi so gya hain… Hme kaam karne dijiye. Hmare pass road par protest karne ka samay hain. Nation first for us.”

Professionals sab jaag rhe aur income tax portal hi so gya hain. @IncomeTaxIndia and @nsitharaman ji ki nind to abhi tak khuli hi nhi. #extend_due_dates_immediately Hme kaam karne dijiye. Hmare pass road par protest karne ka samay hain. Nation first for us #Extend_Due_Dates

— P K Singh Author (@gstauthor) September 9, 2025

CA Ankit Jain said: “Due to glitches on the Income Tax portal, delayed ITR utility releases, and ongoing natural disasters across India, filing accurate returns by 15.09.2025 is unfeasible. We urge FinMin to extend due date now or waive penalties.”

Due to glitches on the Income Tax portal, delayed ITR utility releases, and ongoing natural disasters across India, filing accurate returns by 15.09.2025 is unfeasible. We urge @FinMinIndia to #Extend_due_date_now or #waive_penalties. #EaseOfDoingBusiness #ITR2025

— CA Ankit jain (@ca_ankitjain_) September 9, 2025

Another user, Dips, expressed frustration: “Saalo income tax walo maine raat ko awaragardi ka plan cancel krke itr bharne ki koshish ki to tumne aaj portal hi down kra dia.”

saalon income tax walo maine raat ko awaragardi ka plan cancel krke itr bharne ki koshish ki to tumne aaj portal hi down kra dia 🤬🤬🤬 https://t.co/7A5WyL3Naw pic.twitter.com/Yyfo7VGTTy

— Dips. (@dipsverse) September 9, 2025

Piyush Patekar posted late-night issues: “Its 23:52 and still at such late hrs Income Tax portal is slowed. AIS is not able to view. Even GST portal is slowed.”

Its 23:52 and still at such late hrs Income Tax portal is slowed.AIS is not able to view.Even GST portal is slowed @IncomeTaxIndia pic.twitter.com/E3Wr6QU1Uq

— piyushp99 (@PiyushPatekar) September 9, 2025

Vinay Sharma also complained: “I am unable to log in to the Income Tax e-Filing portal. Kindly look into this issue at the earliest.”

@IncomeTaxIndia I am unable to log in to the Income Tax e-Filing portal. Kindly look into this issue at the earliest. #ITR

— Vinay Sharma (@vinaysharma1654) September 9, 2025

The repeated complaints reflect rising frustration among professionals, who argue that glitches and delays are making it nearly impossible to complete filings on time. They are urging the Finance Ministry and CBDT to announce an extension to ensure compliance and reduce stress on the system.

ITR filing deadline is September 15: Will CBDT extend the due date?

Aditya Bhagchandani — Mon, 08 Sep 2025 06:04:22 +0000

The Central Board of Direct Taxes (CBDT) has already extended the last date for filing Income Tax Returns (ITR) for FY 2024-25 (AY 2025-26) to September 15, 2025. This deadline applies to individual taxpayers whose accounts are not subject to audit.

Filing pace remains slow

With just a week left, the Income Tax Department’s portal data as of September 7 shows:

13.35 crore individual registered users
4.89 crore ITRs filed
4.63 crore returns verified
3.35 crore verified returns processed

Despite these numbers, tax experts say filing activity is running behind expectations, raising questions about whether the deadline will be extended again.

Growing calls for extension

Several trade bodies and professional associations have written to CBDT seeking more time. Their concerns include delayed release of ITR utilities, frequent portal glitches, and the mounting compliance burden this year.

The Federation of Karnataka Chambers of Commerce & Industry (FKCCI) and the Chartered Accountants Association, Surat (CAAS) cited portal inefficiencies and heavy compliance pressure.
The Bombay Chartered Accountants’ Society (BCAS) in a letter on September 1, requested extensions for ITR filing, tax audit, and transfer pricing cases.
On September 2, the Tax Bar Association, Bhilwara also raised issues of delayed AIS/TIS/26AS updates, mismatches in dividend and capital gains data, and frequent portal timeouts.
Other associations such as CCATAX (Chandigarh) and the Gujarat Chamber of Commerce & Industry (GCCI) flagged compressed timelines caused by staggered release of forms.

Key issues flagged

Delay in release of forms and utilities, reducing preparation time.
Mismatches in AIS, TIS, and Form 26AS complicating reconciliations.
Portal performance issues including timeouts and login failures.
Additional compliance requirements under revised formats.

No official word yet

So far, there has been no official announcement from CBDT regarding a further extension. With multiple associations pressing for relief and filing numbers still lagging, all eyes remain on whether the government grants taxpayers more time ahead of the September 15 deadline.

#Extend_Due_Date_Immediately trends on X: Tax professionals demand ITR filing extension due to portal glitches and compliance burden

News Desk — Fri, 05 Sep 2025 02:11:53 +0000

As the deadline for filing income tax returns (ITR) approaches on Monday, September 15, 2025, tax professionals, chartered accountants (CAs), and taxpayers have taken to social media platform X (formerly Twitter) to demand an urgent extension. The hashtag #Extend_Due_Date_Immediately has been trending since Thursday morning, reflecting widespread concerns over the tight timelines.

With just ten days left for the deadline, concerns are mounting over portal glitches, late release of utilities, frequent AIS/TIS download errors, and an overwhelming workload for professionals. Many CAs argue that without an extension, filing quality will be compromised, potentially leading to compliance issues.

CA Amit Garg highlighted the pressure on professionals, tweeting:

@IncomeTaxIndia @nsitharamanoffc @PMOIndia #Extend_Due_Date_Immediately #ITR
This is to inform you that most of the Tax professionals are in deed trouble. They are worry about their work. Less time will give poor quality of the work.
For better compliance,need a time.

— CA Amit Garg (@amit_garg271) September 5, 2025

“This is to inform you that most of the Tax professionals are in deep trouble. They are worried about their work. Less time will give poor quality of the work. For better compliance, need a time.”

Similarly, Vansh Kashyap pointed to technical issues on the government portal:

📢 Attention CAs, Tax Professionals & Taxpayers,

The portal is not working properly, and many returns are still pending. With deadlines so close, it’s becoming very tough to complete the work.

👉 Let’s request an extension together.
Use #Extend_Due_Date_Immediately .

— Vansh kashyap (@oye__vansh) September 5, 2025

“The portal is not working properly, and many returns are still pending. With deadlines so close, it’s becoming very tough to complete the work. Let’s request an extension together.”

Another user, Shares and Life, listed the multiple hardships being faced:

Late release of utilities,
Change in Capital Gain rules,
Additional details required in old regime,
Frequent AIS/TIS download issues,
Wrong data in AIS/TIS,
Flood situation in many states.

Given these genuine hardships,
Kindly #Extend_due_date_immediately

— Shares and Life (@sharesandlife) September 4, 2025

“Late release of utilities, change in Capital Gain rules, additional details required in old regime, frequent AIS/TIS download issues, wrong data in AIS/TIS, flood situation in many states. Given these genuine hardships, kindly extend due date immediately.”

CA Dhwanit Mehta emphasized collective action:

📢 Requesting all Chartered Accountants, Tax Professionals, and Taxpayers 🚨

If you truly want an extension of Non-Audit ITR and Tax Audit Due Dates, let’s raise our collective voice.

👉 Trend the hashtag #Extend_Due_Date_Immediately on social media.
Your support matters.

— Dhwanit Mehta (@dhwanit_mehta) September 4, 2025

“If you truly want an extension of Non-Audit ITR and Tax Audit Due Dates, let’s raise our collective voice. Trend the hashtag #Extend_Due_Date_Immediately.”

Highlighting the numbers, CA Bharat Vijayvargiya shared:

Just 10 days left.
Out of 7.3 Cr, only 4.3 Cr returns filed.
Filing 3 Cr+ returns in 10 days is impossible.

Dear @IncomeTaxIndia
Kindly #Extend_Due_Date_Immediately #Extend_Due_Date_Immediately

— CA Bharat Vijayvargiya (@OfficeofBharatV) September 4, 2025

“Just 10 days left. Out of 7.3 Cr, only 4.3 Cr returns filed. Filing 3 Cr+ returns in 10 days is impossible.”

Other professionals, including Lokesh SN, voiced stress and burnout:

#Extend_Due_Date_Immediately Mam, pls understand how we can convey our clients, we are working day and night without proper rest, they thought filings delay is from our fault…if extension got further delay no use in it.#Extend_Due_Date_Immediately @IncomeTaxIndia @nsitharaman

— Adv. LOKESH SN (@lokeshnmca) September 4, 2025

“Mam, pls understand how we can convey our clients, we are working day and night without proper rest. They thought filing delays is from our fault… if extension got further delay no use in it.”

With thousands of tweets surfacing, the demand for an extension is gaining momentum. While the Income Tax Department has not yet issued an official statement, the pressure is mounting on the government to provide relief, especially considering portal challenges and pending returns.

Whether the deadline will be extended remains uncertain, but the growing online campaign signals the urgency felt by India’s tax professionals and taxpayers alike.

Explained: GST Council exempts life, health and savings insurance from tax; third-party cover for goods vehicles cut to 5%

Arunika Jain — Thu, 04 Sep 2025 04:24:30 +0000

The 56th GST Council meeting has approved significant changes in the taxation of insurance products. According to Annexure-III of the official press release, GST has been exempted on all individual life, health and savings insurance policies. In addition, the Council has reduced GST on third-party insurance for goods vehicles to 5% from 12%.

What this means for consumers

For retail customers buying life and health cover, the exemption makes policies more affordable, as premiums will no longer carry GST. This is expected to improve penetration of insurance products, especially in under-served categories like health.

For goods vehicle owners, the GST rate on third-party cover — which is mandatory — has been lowered, directly reducing the cost of compliance for transporters and logistics operators.

What about car and two-wheeler insurance?

The press release does not explicitly mention retail motor insurance such as cars or two-wheelers. Only individual life, health and savings policies have been exempted, while third-party insurance for goods vehicles has been reduced to 5%. Motor insurance therefore remains outside the scope of this exemption unless the government issues further clarification.

Implications for insurers

While the move is consumer-friendly, insurers will no longer be able to claim input tax credit (ITC) on their expenses for exempted products. This could raise costs for companies, and some may adjust base premiums marginally to balance the impact.

Why the GST Council did this

The decision is aimed at improving affordability and encouraging wider penetration of essential insurance products. For goods vehicles, the reduced GST rate aligns with the government’s push to lower logistics costs and improve efficiency.

Disclaimer: This article is based on details from the 56th GST Council press release (Annexure-III) and does not constitute investment or policy advice.

Explained: How GST will now be levied on retail sale price for pan masala, gutkha, cigarettes and chewing tobacco

Arunika Jain — Thu, 04 Sep 2025 03:37:26 +0000

The GST Council has decided to change the taxation base for sin goods such as pan masala, gutkha, cigarettes, unmanufactured tobacco and chewing tobacco like zarda. Instead of being taxed on the transaction value — the price at which manufacturers or distributors sell to wholesalers — these products will now attract GST on their retail sale price (RSP).

What changes with RSP-based taxation

Until now, GST on tobacco and pan masala was levied on the transaction value declared by manufacturers at the time of sale to distributors. This left scope for undervaluation, as the declared price could be significantly lower than the maximum retail price (MRP) at which consumers eventually bought the products.

By shifting the tax base to RSP, GST will now be calculated on the final retail price printed on the pack. This is expected to plug leakages, curb revenue loss to the exchequer, and bring uniformity in the way these high-tax products are assessed.

Illustrative example: ₹100 MRP pack of pan masala

(Note: This is only a simplified example to explain the tax change. Actual prices and tax rates differ.)

Earlier system (GST on transaction value): If the manufacturer sold the pack to a distributor at ₹60, GST and cess were charged on ₹60. Assuming a 50% tax rate, the tax collected would be ₹30.
New system (GST on RSP): The same pack has a retail sale price of ₹100. GST and cess will now be charged on ₹100. At the same 50% tax rate, the tax collected would rise to ₹50.

This illustrative calculation shows how shifting the tax base from transaction value to retail sale price increases tax collection and reduces scope for undervaluation.

Why this matters

Pan masala, gutkha and tobacco products have been under close scrutiny by both tax authorities and public health officials. These are among the highest-taxed items in the GST regime, attracting 28% GST plus a hefty compensation cess. Yet, due to under-reporting of transaction values, the actual tax collected often fell short of expectations.

With RSP-based taxation, the effective tax burden on manufacturers and distributors is likely to rise, especially for products sold at a large markup to consumers. This is expected to increase government revenues while making tax evasion more difficult.

Impact on companies

Manufacturers of pan masala, gutkha and chewing tobacco will now face higher compliance costs and reduced flexibility in pricing structures. Large organised players may be better positioned to absorb the change, but smaller or regional firms could feel the pressure.

For cigarette companies, where the RSP is already closely monitored, the impact may be less pronounced, but the shift will still tighten the taxation framework. Analysts expect the move could raise effective duties across the category, potentially leading to higher consumer prices.

Broader implications

The decision signals the government’s continued effort to tighten the taxation regime around sin goods. Besides boosting revenue, policymakers also see it as part of a larger public health strategy to discourage consumption through higher retail prices.

However, consumer behaviour in these categories is often sticky, and demand may not fall significantly despite price increases. This could mean higher tax collections for the government without a proportionate decline in sales volumes.

Disclaimer: This article has been written by the author based on their understanding of the subject. However, readers are strongly advised to consult with a qualified financial advisor before making any investment or financial decisions.

GSTR-3B filing due date for July extended to August 27 in parts of Maharashtra

News Desk — Thu, 21 Aug 2025 03:21:09 +0000

The Ministry of Finance has extended the due date for filing GSTR-3B for the month of July 2025 for taxpayers in select districts of Maharashtra. According to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC) on August 20, 2025, the deadline has been extended till 27th August 2025.

The extension applies to registered taxpayers whose principal place of business is located in Mumbai City, Mumbai Suburban, Thane, Raigad and Palghar districts. The decision has been taken under the provisions of the Central Goods and Services Tax Act, 2017, owing to heavy rains and disruption of normal life in these regions.

The notification, issued under G.S.R. 565(E) by the Department of Revenue, specifies that affected taxpayers can avail the extended timeline to furnish their GSTR-3B returns in compliance with section 39 of the CGST Act read with rule 61 of the CGST Rules, 2017.

How a simple Demat account trick can save you thousands in stock market taxes

News Desk — Sat, 16 Aug 2025 12:14:10 +0000

The hidden problem most investors miss

Many stock market investors unknowingly pay far more tax than they should simply because of how they manage their Demat accounts. The reason? Most people hold both their long-term investments and short-term trading positions in the same Demat account.

On the surface, this looks simple and convenient. But when it comes to taxation, it creates a trap that leads to higher taxable gains — and bigger tax bills.

How FIFO inflates your tax bill

India’s tax system follows FIFO – First In, First Out. This means when you sell shares, the system assumes you’re selling your oldest holdings first, even if your intention was to sell recent trades.

Here’s a simple example:

You buy 100 shares at ₹100 each for long-term investment.
Later, you buy 50 shares at ₹180 each for short-term trading.
A few weeks later, you sell the 50 shares at ₹200 each.

What you think your profit is:

Trading profit = ₹20 per share (₹200 – ₹180).

What the tax system says your profit is:

Since FIFO applies, it counts the ₹100 long-term shares as sold first.
Taxable profit = ₹100 per share (₹200 – ₹100).

So instead of being taxed on ₹1,000 profit (50 × ₹20), you’re taxed on ₹5,000 profit (50 × ₹100).

That’s a huge jump — and this happens only because everything is mixed in one account.

The fix: Separate your holdings

The solution is straightforward: keep your long-term and short-term investments in separate Demat accounts.

One Demat account for long-term holdings.
Another Demat account for short-term trades.

This way, you control which shares you’re selling, and the FIFO rule applies within each account separately. By simply separating accounts, you prevent long-term investments from being treated as short-term sales.

How Zerodha makes it easier

Recently, Zerodha introduced a Secondary Demat Account feature. This allows investors to create a second Demat account under the same login, making it far easier to separate long-term and short-term holdings.

Zerodha users can activate this feature for better tax planning.
Even non-Zerodha users can do this by opening Demat accounts with different brokers.

Either way, the principle is the same: segregation gives you tax control.

Why this matters

For small traders, this could mean saving thousands of rupees a year. For larger portfolios, it could mean lakhs in tax savings over time.

In stock market investing, we often focus on making the right trades. But managing tax efficiency is equally important. As the saying goes: It’s not just about what you earn, it’s also about what you keep.

Conclusion

By using separate Demat accounts — or Zerodha’s new Secondary Demat Account feature — you can legally and effectively reduce your tax burden. It’s a simple, practical tax hack that can save you big money in the long run.

If you invest in stocks, this one adjustment could mean the difference between paying heavy taxes and keeping more of your hard-earned profits.

Disclaimer: This article is for informational purposes only and does not constitute financial or tax advice. Readers should consult a qualified professional before making any investment or tax-related decisions.

Details in this article have been referenced from a LinkedIn post by CA Nitesh Buddhadev.

Finance ministry announces sweeping GST reforms to boost economy and ease compliance; focus on structural changes, rate rationalisation

News Desk — Fri, 15 Aug 2025 06:14:05 +0000

The finance ministry has set the stage for a significant overhaul of the Goods and Services Tax (GST) regime, outlining reforms built on three key pillars — structural changes, rate rationalisation, and improving the ease of living for citizens.

According to the ministry, the proposed changes will include rationalisation of tax rates to ensure benefits reach all sections of society, while also addressing long-standing issues such as classification-related disputes and inverted duty structures in specific sectors.

Officials say the reforms are aimed at ensuring greater rate stability and enhancing the ease of doing business, measures that could boost investor confidence and economic momentum. The ministry added that the changes are expected to strengthen key sectors of the economy, stimulate activity across industries, and pave the way for sectoral expansion.

The announcement signals one of the most ambitious GST reform drives since the tax’s rollout in 2017, with the government looking to create a simpler, fairer, and more business-friendly tax system ahead of the festive season.

Medicines, tractors emerge as sticking points in scrapping 12% GST slab: Report

Aditya Bhagchandani — Tue, 10 Jun 2025 09:16:10 +0000

According to a Moneycontrol report, efforts to scrap the 12 percent Goods and Services Tax (GST) slab have run into resistance, with medicines and tractors emerging as key sticking points due to their socio-economic impact and potential revenue implications.

Sources told Moneycontrol that while there is consensus to eliminate the 12 percent GST bracket entirely, states are grappling with the potential revenue loss, estimated at Rs 3,000–4,000 crore, particularly if essential items like medicines and tractors are shifted to lower or exempted tax brackets.

In order to rationalise the GST structure, most items under the 12 percent slab are proposed to be shifted either to the 5 percent or 18 percent categories. However, Moneycontrol reports that medicines—including allopathic, ayurvedic, homeopathic, veterinary drugs, diagnostic kits, and surgical dressings—pose a revenue risk if moved to the 5 percent slab. This change would add significantly to the shortfall.

According to Moneycontrol, tractors also complicate the equation. As agricultural equipment, they cannot be taxed at 18 percent, and the prevailing recommendation is to exempt them altogether—without input tax credit (ITC)—to avoid tax inversion. Tax inversion, as explained in the report, occurs when the tax rate on inputs is higher than on final goods, leading to unutilised ITC and affecting business cash flow.

A government official told Moneycontrol, “There is consensus on removal of the 12 percent slab, but a Rs 3,000-4,000 crore revenue loss has to be made up from some other items. Most items can be moved out, but these two – medicines and tractors – are the sticking point.”

To bridge this gap, the GST Council has considered increasing taxes on luxury items like high-end footwear and premium goods. But Moneycontrol cites government sources as saying that the low consumption in these segments means they cannot compensate for the anticipated shortfall. “On luxury goods like high-end shoes, it was discussed to increase tax to compensate for this revenue loss, but consumption is low and is not covering the Rs 4,000 crore gap,” the source said.

As per Moneycontrol, this creates a delicate balancing act for the Council. Medicines are considered essential and a hike would impact affordability and accessibility, especially for low-income families. Tractors are similarly vital for the agricultural sector and any cost escalation would burden farmers.

The long-standing goal of GST reform is to simplify the rate structure. According to Moneycontrol, a three-rate structure—5 percent, 18 percent, and 28 percent (for demerit goods)—remains under serious consideration, but reconciling it with economic realities remains challenging.

How to Verify a Vendor’s GST Number Before Making Payments

News Desk — Thu, 01 May 2025 10:29:09 +0000

In India, the scope of digitally driven business transactions has become quite promising, already capturing the market at a rapid scale and growing. With GST playing a crucial role in the taxation framework, ensuring the legitimacy of business transactions is more important than ever.

For businesses, making vendor payments requires verifying the GST online before making payments. With rising cases of tax fraud and fake invoicing, performing a GST number search is both a strategic and regulatory necessity.

In this article, we will look at the importance of GST number verification and how implementing proper verification processes can protect your business from potential fraud and compliance issues.

What is a GSTIN?

GSTIN, or Goods and Services Tax Identification Number, is a 15-digit unique PAN-based identification provided to a firm or taxpayer registered under India’s Goods and Services Tax (GST) regime.

This GST number search validation is necessary for enterprises to comply with GST laws and regulations, which allow them to collect and transfer GST to the government. Once the person crosses the threshold limit for GST registration, then it’s compulsory to obtain GSTIN.

Ensure the correct GST number format of the 15-digit alphanumeric code as per the GST structure. Just in case the GST number format is incorrect, you will get an error message at the time of the GST payment.

Why Verifying a GST Number in India Matters?

Compliance Assurance: GST number verification has become essential due to the increasing number of GST-related frauds, which caused Gujarat to lose Rs. 3,434 crores through fake invoicing. Businesses encounter major IT claim obstacles when working with vendors who lack proper registration or whose registration is incorrect.
Fraud Prevention: Multiple situations have seen businesses creating fake GST invoices through the use of non-existent GST Identification Numbers. With quick GST Verification companies can avoid fraudulent activities and other legal consequences
Business Authentication: GST number verification belongs to a comprehensive system of due diligence practices. Businesses that verify GST numbers ensure they work with honest entities, which creates both safe and transparent supply chain operations.

Steps for a GST Number Search

The process to verify a GST number online is simple and quick

Visit the GST website: Visit https://www.gst.gov.in/ the official GST website.
Choose “Search Taxpayer”: Select the “Search Taxpayer”
Put in the GSTIN or PAN of the taxpayer you want to verify.
Choose the type of verification: Depending on your preference, select either the “Search by GSTIN” or the “Search by PAN” option.
Once you have entered the necessary information and chosen the method of verification, click the “Search” button.
Check the information. You can view the taxpayer’s information on the screen if the GSTIN or PAN is legitimate.

If the number is invalid or inactive, the portal will alert you instantly.

Things to look into

Mismatch of names between the GST portal and the invoice.

Inactive status of a GSTIN at the time of transaction.

Invalid GST structure, suggesting a fake or mistyped number.

Frequent changes in GSTIN for a recurring vendor, indicating suspicious activity.

Conclusion

This article highlights the need for regularly conducting GST number verification because, more than a proactive business measure—it’s a critical compliance requirement in India’s GST-regulated economy. Whether you’re running a small business or managing large-scale operations, consistently performing GST checks online helps mitigate risks and protect your enterprise’s integrity.

In the market, there are several fintech tools like Pice that provide a reliable platform to perform GST searches and verify the authenticity of businesses.

Does the 80D Deduction Cover Health Insurance for Dependent In-Laws?

News Desk — Fri, 28 Mar 2025 06:26:55 +0000

The income tax you pay is also about how you structure your finances. Your taxable income sits within a slab, determining how much of your earnings go toward taxes. Naturally, reducing this taxable income can ease your financial burden and that’s where tax deductions come in. They allow you to legally lower your tax outgo by accounting for eligible expenses, including those related to health and well-being.

If you’ve ever explored how to calculate taxable income, you would know that deductions play a crucial role in bringing down the final tax liability. Among the many deductions available, the one for health insurance often stands out. It not only supports financial planning but also ensures medical expenses don’t become overwhelming.

But tax benefits on health insurance have their own set of conditions—who qualifies, how much can be claimed and whether specific dependents are covered. One question that often comes up is whether medical insurance for dependent in-laws qualifies for a deduction. Let’s look at who is eligible and not in this post.

Section 80D

Section 80D of the Income Tax Act allows individuals to claim deductions on premiums paid for health insurance policies, offering a way to reduce taxable income while securing financial protection. This deduction applies to policies covering yourself, your spouse, children and parents, with specific limits based on the insured person’s age. It also extends to expenses for preventive health check-ups.

However, it does not cover health insurance premiums paid for dependent in-laws. The deduction is strictly available for policies covering your parents—your father and mother—but not your spouse’s parents.

Deductions that can be claimed under Section 80D

Section 80D deduction is related to health-related expenses, reducing taxable income while promoting financial preparedness for medical needs. These deductions cover health insurance premiums and specific medical costs. However, to qualify, the premium must be paid through non-cash modes like credit/debit cards, net banking or UPI. Only preventive health check-ups can be paid in cash and still be eligible for deductions. Below is a breakdown of the benefits available:

Deduction for health insurance premium

Individuals can claim a deduction of up to ₹25,000 on premiums paid for health insurance covering themselves, their spouse and dependent children. If the insured person (self or spouse) is a senior citizen (aged 60 or above), the deduction increases to ₹50,000.

Deduction for health insurance premium paid for parents

An additional deduction is available for health insurance premiums paid for parents. If both parents are below 60 years, the deduction limit is ₹25,000. However, if either parent is a senior citizen, the limit increases to ₹50,000.

Deduction for preventive health check-ups

Preventive health check-ups help detect illnesses early, reducing the risk of severe health complications. These screenings, typically conducted by physicians or general practitioners, encourage proactive health management.

Under Section 80D, individuals can claim a deduction of up to ₹5,000 for preventive health check-up expenses incurred for themselves, their spouse, dependent children, or their parents. This amount is not separate but included within the ₹25,000 or ₹50,000 limit.

Deduction for medical expenses of uninsured senior citizens

If a senior citizen (60 or above) does not have health insurance, their medical expenses can still be claimed as a deduction. The maximum deduction allowed for such medical expenses is ₹50,000. This provision ensures tax relief even for those who cannot avail of insurance due to age or pre-existing conditions.

Maximum deduction limits under Section 80D

If neither the taxpayer nor their parents are senior citizens:

₹25,000 (for self, spouse and children) + ₹25,000 (for parents) = ₹50,000.

If the taxpayer is below 60, but the parents are senior citizens:

₹25,000 (for self, spouse and children) + ₹50,000 (for parents) = ₹75,000.

If both the taxpayer and parents are senior citizens:

₹50,000 (for self, spouse and children) + ₹50,000 (for parents) = ₹1,00,000.

Conclusion

Claiming deductions under Section 80D is simple. When filing your Income Tax Return (ITR), ensure that the health insurance premium or medical expenses are paid through the accepted mode. Maintain receipts, policy documents and payment proofs as supporting records.

While filing your ITR, enter the relevant deduction amount under Section 80D in the appropriate section. If your employer provides tax benefits, submit these details in advance for payroll adjustments. Keeping proper documentation helps avoid discrepancies and ensures a smooth claim process, so that you can keep enjoying the tax benefits year on year.

Infosys receives Rs 2,949 crore tax refund orders from Income Tax Department for AY 2016-17 and 2019-20

News Desk — Wed, 26 Mar 2025 17:10:46 +0000

Infosys Ltd has informed the stock exchanges that it has received tax refund orders from the Income Tax Department under Section 250 of the Income Tax Act, 1961, pertaining to Assessment Years 2016-17 and 2019-20. The orders were received on March 25 and March 26, 2025, respectively.

As per the official filing, the company expects a total refund of ₹2,949 crore, which includes interest. Infosys further noted that it is currently evaluating the financial impact of these orders on its results for the quarter and year ending March 31, 2025.

The development could bolster the company’s balance sheet in the final quarter of FY25 and may influence investor sentiment as Infosys prepares to close its financial year.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to consult their financial advisors before making any investment decisions.

How tax harvesting can help investors save on taxes before March 27, 2025

Aditya Bhagchandani — Tue, 25 Mar 2025 04:43:29 +0000

With the financial year nearing its close, investors have until March 27, 2025 — the effective last date due to Eid holidays — to utilise tax harvesting, a smart strategy that can reduce your capital gains tax burden significantly.

What is tax harvesting?
Tax harvesting involves selling underperforming stocks or mutual funds that are currently in loss to offset gains made on profitable investments within the same financial year. This practice, widely used in the US, is now gaining traction among Indian investors as well.

“In the US, it’s common for investors to book investment losses near the end of the financial year to reduce their tax liabilities and create tax assets,” says Karan Aggarwal, Co-Founder & CIO of Elever. “This strategy, known as tax loss harvesting, can also be leveraged by Indian investors to generate tax alpha.”

How it works:

Sell stocks or mutual funds in a loss position before March 27 to realise a capital loss.
Use the loss to offset gains made on equities, mutual funds, or even real estate.
If there are no gains this year, the loss can be carried forward for up to 8 years to offset future capital gains.

Important rules:

Cannot offset losses against salary income.
Cannot use carried-forward losses to offset derivative gains.
Maintain market exposure by repurchasing the same stock after 2 days or buying a similar asset or fund in the same category.

Tax harvesting is especially useful when rebalancing your portfolio at the end of the year. By tactically realising losses now, investors can optimise their tax outgo while remaining invested in the market. Just remember — March 27, 2025, is the final date to act on this strategy this year.

Top Tax-Saving Strategies Simplified with an Online Tax Calculator

News Desk — Mon, 24 Mar 2025 06:33:56 +0000

Tax planning can feel like a big task if you leave it for the last moment. Many of us rush to gather bills and receipts to find ways to reduce our taxable income. Then we end up confused about old regimes, new regimes, and which deductions apply. This process does not have to feel so rushed or complex. That is where an Income Tax Calculator can help. It gives you a fast and clear projection of your taxes, so you can decide how to save income tax in India in a smooth way.

Why Tax Planning is More Than Just Compliance?

Tax is not just return filing. Good tax planning helps you retain as much of your hard-earned money as possible while remaining within the legal limits. A planned and smart approach will benefit you by:

Reducing taxable income
Maximising deductions and exemptions
Avoiding unnecessary taxation
Planning investments that provide long-term financial security

An Income Tax Calculator takes out most of the guesswork involved. Just put in a few details, and it gives you your tax liability under the new tax regime and the old tax regime. This clarity allows it to choose the option that helps in minimising tax outgo.

Using a Tax Calculator to Simplify the Process of Tax Planning

The old way of computing taxes involved reading tables, reading rules, and sometimes making mistakes in the middle of calculations. The new approach is more user-friendly. You visit a site like Axis Max Life Insurance that provides a tax calculator. You add your salary, your investment details, and your standard deduction, if applicable, and the tool quickly shows your total tax. It factors in any tax you have already paid, such as TDS or advance tax, and displays the net tax you owe. If your total taxable income is below five lakh rupees, the calculator even applies the Section 87A rebate, bringing down your payable tax further.

Understanding Key Tax Deductions and Exemptions

If you want to know how to save income tax in India, you must pay attention to deductions and exemptions. They help reduce your taxable income, which then lowers your tax. A good tax calculator will ask about different sections:

Section 80C: A maximum of Rs. 1.5 lakh for investments in PPF, ELSS, fixed deposits (five-year lock), and more. It also covers tuition fees for children, the principal on a home loan, and premiums for certain life insurance plans.
Section 80D: Premiums for health insurance are deductible. If you pay for your parents’ health insurance and they are over 60, you can claim even more.
Section 80CCD(1B): If you invest in the National Pension System, you can claim an extra Rs. 50,000 beyond the 80C limit.
Section 24(b): Interest on a home loan may be granted up to Rs. 2 lakh as a deduction for self-occupied property.
Standard Deduction: Rs. 50,000 is allowed for salaried people in the old regime and, from FY 2024-25 onward, also under the new regime.

When you feed all these details into the tax calculator, it shows how much your net tax is after using all the valid deductions.

Below is a table to show a sample calculation for someone with basic salary, a few investments, and premiums:

Particulars	Old Regime (Rs.)	New Regime (Rs.)
Gross Income	12,00,000	12,00,000
Standard Deduction	50,000	50,000
80C (PPF, ELSS, etc.)	1,50,000	Not Applicable
80D (Health Insurance)	30,000	Not Applicable
Taxable Income	9,70,000	11,50,000
Tax Payable	87,500	1,17,000

For those who invest more, the old regime often looks better because it has many deductions. But if you are not investing a large sum in tax-saving items, the new regime might be more effective.

Where to Invest for Tax Savings?

People want strong returns, but they also want to reduce their taxes. Investments such as a savings plan from an established insurer can meet these needs. This approach can help you reduce your taxable income while building wealth or safeguarding your loved ones with insurance coverage. Some premium insurance providers, like Axis Max Life Insurance, offer tax-saving investment plans that fit the bill. These plans come with:

Guaranteed returns on investments
Tax deductions under Sections 80C and 10(10D)
Life cover benefits for family protection

Choosing the best plan is simpler if you use an Income Tax Calculator to test different amounts. For instance, if you put Rs. 1.5 lakh in a life insurance plan, the calculator updates your net tax at once. This helps you see how much money you might save compared to investing in a different product or skipping the investment altogether.

Why Timely Tax Planning Matters?

It is tempting to wait until March to scramble for receipts and transfer money into a tax saver. But advanced planning can help you:

Pay smaller instalments throughout the year.
Pick better investment options calmly.
Build a stronger portfolio aligned with your life goals.

All these steps become easier with a tax calculator by your side. It shows you how a monthly sum in a certain plan changes your year-end tax result. You do not get stuck in last-minute lump sum payments or the risk of picking an option that is not truly helpful.

Old Regime vs. New Regime

People get puzzled about whether they should shift to the new system or remain in the old system. The old version has numerous deductions. The new version offers lower rates but excludes major deductions. A quick session with an Income Tax Calculator clarifies which is more beneficial for your level of investment or expenses. It will handle the math, letting you quickly gauge which total is smaller and, therefore, better for your savings.

Conclusion

Tax planning does not have to be an annual headache or a dull exercise in arithmetic. The simplest route is to use an Income Tax Calculator. It breaks down your total tax across old and new regimes, highlights potential savings, and helps you choose your next moves. Whether it is filling your Section 80C limit or buying health insurance, small adjustments can cut your tax significantly.

If you are thinking about how to save income tax in India while building a corpus or safeguarding your family, consider exploring tax-saving investment plans from experienced companies like Axis Max Life Insurance. You can trim your tax bill while preparing for unforeseen events. But do not wait until the last minute. Check your taxes early, explore your plan for the year, and invest slowly. That way, your entire approach to taxes feels more stable and much less stressful.

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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Tax benefit is subject to change as per prevalent tax laws.

India’s Direct Tax Collections surge 13.13% to Rs 21.26 lakh crore so far in FY25

Aditya Bhagchandani — Mon, 17 Mar 2025 11:16:41 +0000

India’s direct tax collections for the financial year 2024-25 have witnessed a 13.13% year-on-year (YoY) increase, reaching ₹21.26 lakh crore as of March 16, 2025, according to data released by the Income Tax Department. The robust growth in tax collections is indicative of strong economic activity and improved tax compliance.

Breakdown of Direct Tax Collections

Gross Direct Tax Collections: ₹25.86 lakh crore, reflecting a 16.15% YoY growth.
Refunds Issued: ₹4.60 lakh crore, a 32.51% increase compared to the previous year.
Net Direct Tax Collections: ₹21.26 lakh crore, up 13.13% YoY after adjusting for refunds.

Component-wise Tax Collection Growth

Corporate Tax (CT) Collection: ₹9.69 lakh crore, an increase from ₹9.04 lakh crore in the previous year.
Non-Corporate Tax (NCT) Collection: ₹11.01 lakh crore, up from ₹9.37 lakh crore.
Securities Transaction Tax (STT): ₹53,095 crore, significantly higher than last year’s ₹34,131 crore.
Other Taxes: ₹3,340 crore, marginally lower than last year’s ₹3,566 crore.

Advance Tax Collections Exhibit Strong Growth

Advance tax collections, a key indicator of corporate and individual taxpayer confidence, rose by 14.62% YoY, amounting to ₹10.44 lakh crore. Corporate taxpayers contributed ₹7.57 lakh crore, while non-corporate taxpayers paid ₹2.87 lakh crore in advance tax.

The rise in tax collections suggests sustained economic momentum, better compliance measures, and increased profitability across sectors. With the Indian economy maintaining strong growth, tax revenues are expected to remain on an upward trajectory for the remainder of the fiscal year.

Yes Bank launches seamless GST payment facility for businesses

News Desk — Fri, 14 Mar 2025 06:19:41 +0000

YES BANK has launched a seamless GST payment facility, integrating directly with the Goods and Services Tax (GST) portal, allowing businesses and sole proprietors to pay their GST dues quickly and securely.

The service, authorized by the Government of India, enables taxpayers to generate GST challans on www.gst.gov.in and make payments via YES BANK’s NetBanking platform or at its branch network. This move enhances digital banking convenience and aims to simplify statutory tax payments for businesses.

Key highlights of the GST payment facility:

Seamless Integration: Instant online payments via YES BANK NetBanking or over-the-counter branch payments.
Secure & Efficient: Real-time confirmations, transparent fees, and a user-friendly interface.
Universal Access: Available to YES BANK customers and non-customers alike.
Comprehensive Solution: Expands YES BANK’s digital tax payment services, making financial compliance easier.

Prashant Kumar, MD & CEO of YES BANK, emphasized that the initiative reflects the bank’s digital-first approach, ensuring a fast, secure, and hassle-free tax payment experience for businesses of all sizes.

This latest initiative strengthens YES BANK’s position in India’s digital banking ecosystem, further supporting the government’s push towards financial inclusion and ease of doing business.

Income Tax Department imposes Rs 3.26 crore penalty on Parag Milk Foods for regulatory violation

News Desk — Sat, 01 Mar 2025 03:22:00 +0000

Parag Milk Foods Limited has received a penalty order from the Central Range 2, Pune of the Income Tax Department under Section 271D of the Income Tax Act, 1961. The order, issued for the Assessment Year 2016-17, imposes a penalty of ₹3.26 crore on the company for a violation of Section 269SS of the Income Tax Act, which pertains to restrictions on cash transactions.

The company confirmed that it received the penalty order on February 28, 2025, at 10:38 a.m. (IST). However, Parag Milk Foods has stated that it intends to pursue an appeal against the order and has requested that the penalty proceedings be kept under abeyance until the appeal is resolved. The company also clarified that there is no impact on its operations or other activities due to this order.

Further updates on the appeal proceedings are awaited as Parag Milk Foods navigates the regulatory challenge.

Laxmi Dental receives show cause notice from Income Tax Department

News Desk — Sat, 01 Mar 2025 01:27:05 +0000

Laxmi Dental Limited, formerly known as Laxmi Dental Export Private Limited, has received a show cause notice from the Income Tax Department (ITD). The notice pertains to an alleged variation in income of ₹93,77,916 as reported in Form 26AS for the assessment year 2019-20. The discrepancy was identified concerning the merged entity, Illusion Dental Laboratory Private Limited.

The ITD has provided a timeline of five days for Laxmi Dental Limited to respond to the notice. The company has confirmed that it will provide a reply within the stipulated time along with the necessary supporting documents.

The notice currently does not impose any penalties or financial fines, nor does it impact the company’s financial, operational, or other activities. However, the ITD has stated that if no response is submitted, the assessment will be finalized considering the stated income variation.

Laxmi Dental Limited has informed the exchanges of the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has made the relevant details available on its website.

Supreme Court dismisses Income Tax Department’s appeal against Patanjali Foods over Rs 186 crore tax demand

News Desk — Wed, 19 Feb 2025 14:42:51 +0000

Patanjali Foods Limited has clarified that the Supreme Court has dismissed the Special Leave Petition (SLP) filed by the Principal Commissioner of Income Tax (Central 4) against the company regarding pre-Corporate Insolvency Resolution Process (CIRP) tax demands amounting to ₹186 crore.

In a regulatory filing on February 19, 2025, Patanjali Foods stated that the SLP was filed by the Income Tax Department against an earlier Bombay High Court ruling, which had quashed the tax department’s demands. However, the Supreme Court dismissed the SLP on January 15, 2025, without serving a notice of hearing to Patanjali Foods. The company only became aware of the ruling when it was posted on the website taxmann.com on February 18, 2025.

The case pertains to demands raised by the Income Tax Department for multiple assessment years prior to the approval of the company’s resolution plan by the National Company Law Tribunal (NCLT). The NCLT had earlier quashed these demands, following which the tax department challenged the decision in the Bombay High Court. However, the High Court ruled in favor of Patanjali Foods, stating that once a resolution plan is approved under the Insolvency and Bankruptcy Code (IBC), all claims of governmental authorities, including income tax dues, stand fully and finally settled.

The Supreme Court’s dismissal of the tax department’s appeal now brings finality to the matter, confirming that the company is not liable to pay the ₹186 crore demand.

Patanjali Foods has stated that the ruling has no financial implications on the company and that the tax claims stand quashed under the IBC framework.

The company also assured investors that the matter has been resolved in its favor, eliminating any potential liability or penalty arising from the tax dispute.

Income-Tax Bill 2025 to replace 1961 Act: Crypto tax, digital filing, what taxpayers need to know

Arunika Jain — Wed, 12 Feb 2025 06:12:22 +0000

The Income-Tax Bill 2025, set to replace the Income-Tax Act of 1961, has been introduced in the Lok Sabha with a focus on simplification, compliance enhancement, and digital transformation of tax administration in India. The bill introduces significant changes in taxation laws, affecting individuals, businesses, and digital asset holders.

Key highlights of the Income-Tax Bill 2025

1. Introduction of a new ‘Tax Year’ concept

A crucial change in the bill is the introduction of the ‘Tax Year’, which aims to streamline tax reporting and compliance, making it uniform across taxpayers. This will replace the existing financial year system and provide clarity in tax assessments.

2. Revised Income Computation and Deductions

The bill proposes a reclassification of income categories, aiming to improve transparency. Major deductions and tax treatments will also be revised for businesses and individuals. The government has introduced provisions to prevent tax avoidance through stock or capital asset transfers within corporate structures.

3. Capital Gains Tax Rationalization

The bill provides a restructured capital gains tax framework, specifically affecting:

Equity shares and real estate: Specific provisions have been introduced for clarity on tax liabilities.
Long-term capital gains: A concessional tax rate will be applicable to certain asset classes to encourage investment.
Corporate tax rates: Special rates will be introduced for startups and manufacturing companies, provided they meet the prescribed conditions.

4. Taxation on Digital Assets and Cryptocurrencies

The bill introduces specific taxation rules for crypto-assets and other virtual digital assets, making reporting of crypto transactions mandatory. Key provisions include:

Special tax rates on earnings from cryptocurrencies.
Stricter compliance norms for crypto exchanges and investors.

5. Strengthened Anti-Tax Avoidance Measures

With tax evasion becoming a global concern, the General Anti-Avoidance Rule (GAAR) has been further strengthened. This includes:

Taxation of unexplained credits and investments to ensure financial transparency.
Stricter scrutiny of offshore transactions to prevent income shifting for tax benefits.

6. Political Party and Trust Exemptions Under New Compliance Norms

The bill continues tax exemptions for political parties and electoral trusts, but with tighter compliance norms to ensure transparency. Similarly, tax provisions for non-profit and charitable organizations have been updated, ensuring tax benefits apply only to legitimate charitable activities.

7. Mandatory Digital Tax Filing and Faceless Assessments

The bill moves further into digital tax administration, introducing:

Faceless tax assessments to reduce human intervention in scrutiny cases.
Mandatory e-filing for specific taxpayer categories to enhance transparency.
Higher penalties for non-compliance in tax filings.

8. Strengthening of Taxation on Foreign Income

Global investors and expatriates will be impacted by enhanced tax provisions, including:

Taxation on foreign investments and offshore transactions.
Special provisions for non-resident Indians (NRIs) and expatriates.
Stronger international tax treaty coordination to prevent double taxation.

The Income-Tax Bill 2025, once enacted, will bring one of the biggest tax reforms in decades, focusing on simplification, digital enforcement, and revenue transparency. Businesses, investors, and taxpayers will need to adapt to the new tax structure before its implementation on April 1, 2026.

Union Budget 2025: Government streamlines tax rules for ULIPs and life insurance proceeds, says CA (Dr.) Suresh Surana

News Desk — Sat, 01 Feb 2025 14:35:07 +0000

The Union Budget 2025 has introduced significant clarifications regarding the tax treatment of Unit Linked Insurance Policies (ULIPs) and other life insurance policies, a move that CA (Dr.) Suresh Surana believes will bring much-needed transparency for taxpayers.

Previously, Section 10(10D) provided exemptions for sums received under life insurance policies, including bonuses, provided certain conditions were met. These conditions included:

The premium for any year during the policy term (for both life insurance and ULIPs issued on or after April 1, 2012) should not exceed 10% of the actual capital sum assured.
The aggregate premium payable during the term should not exceed ₹2.5 lakh (for ULIPs) or ₹5 lakh (for other policies), depending on the issue date.

If these thresholds were breached, the proceeds from these policies would be taxable. However, there was ambiguity regarding the head of chargeability—whether such amounts would be taxed as capital gains or income from other sources.

Dr. Surana explained, “The previous provisions created confusion, especially in the case of ULIPs, where premiums exceeding 10% of the sum assured were not exempt but also weren’t clearly taxed under capital gains as per Section 45(1B). The amendment now brings consistency to the tax treatment of ULIPs and other life insurance policies.”

Under the new amendment, if the exemption under Section 10(10D) does not apply:

Proceeds from ULIPs will be taxed under capital gains.
Proceeds from other life insurance policies will be taxed under income from other sources.

Dr. Surana emphasized that this move will streamline the tax treatment of life insurance proceeds, providing clarity for taxpayers planning their finances. “By addressing ambiguities and ensuring a consistent approach, the government is empowering taxpayers to make more informed decisions regarding their life insurance investments,” he noted.

This budgetary reform is expected to simplify financial planning and reduce litigation by clearly defining the tax obligations associated with life insurance policies, particularly for ULIP holders.

January GST collections rise 12.3% YoY to rS 1.96 lakh crore

Aditya Bhagchandani — Sat, 01 Feb 2025 10:10:20 +0000

India’s Goods and Services Tax (GST) collections for January 2025 soared to ₹1.96 lakh crore, marking a 12.3% year-on-year (YoY) increase from the same month last year. The announcement, made on February 1, underscores strong economic activity despite global headwinds and domestic uncertainties.

In December 2024, GST collections stood at ₹1,76,857 crore, recording a 7.3% YoY growth compared to ₹1,66,882 crore in December 2023. However, on a month-on-month basis, January’s collections represented a 2.97% increase, breaking the streak of slight declines observed in the last three months.

GST Collection Trend Overview:

January 2025: ₹1.96 lakh crore (up 12.3% YoY)
December 2024: ₹1,76,857 crore (up 7.3% YoY)
November 2024: ₹1,82,269 crore
October 2024: ₹1,87,346 crore
September 2024: ₹1,73,240 crore

The year-to-date (YTD) GST collections for the fiscal year now total ₹16.33 lakh crore, reflecting a 9.10% YoY increase over the same period last year. Despite robust YoY growth, collections remain 18.98% short of the total projected target for FY24

Union Budget 2025: No tax on income up to Rs 12 lakh under new income tax regime, Rs 12.75 lakh for salaried taxpayers

Aditya Bhagchandani — Sat, 01 Feb 2025 06:46:17 +0000

Finance Minister Nirmala Sitharaman began her eighth consecutive budget presentation on February 1, 2025, emphasizing the government’s sustained efforts to accelerate growth, secure inclusive development, and boost household sentiment. The budget speech, presented in Parliament at 11 a.m., aims to uplift India’s economic prospects while remaining fiscally disciplined.

In a major relief for taxpayers, the new income tax regime will now exempt income up to ₹12 lakh from tax. For salaried taxpayers, this limit will be further increased to ₹12.75 lakh due to an additional deduction of ₹75,000.

Key Highlights of the New Income Tax Regime:

Tax-free income limit: Increased to ₹12 lakh under the revised structure, offering substantial tax relief compared to previous limits.
₹12.75 lakh exemption for salaried individuals: This includes an automatic deduction of ₹75,000, providing additional benefits to salaried taxpayers.

Government considers reintroducing 18% concessional corporate tax rate: Report

Aditya Bhagchandani — Thu, 16 Jan 2025 11:18:37 +0000

The government is reportedly considering reintroducing a concessional corporate tax rate of 18% in the upcoming Union Budget 2025, CNBC-TV18 reported, citing sources. This move follows demands from several industry leaders urging the revival of the scheme to boost investments and economic activity.

The proposed rate of 18% would be slightly higher than the earlier concessional rate of 15% introduced in 2019. This scheme was initially aimed at incentivizing new domestic manufacturing companies incorporated after October 1, 2019, provided they commenced operations by March 31, 2023. At that time, the concessional rate was significantly lower than the general corporate tax rate of 22%.

In February 2023, the government extended the 15% concessional rate for new manufacturing units by a year, setting the deadline for March 2024. However, the scheme was subsequently phased out and ceased in 2024.

According to CNBC-TV18, the proposal to reintroduce the concessional tax rate is under active discussion within the North Block and the Prime Minister’s Office (PMO). If implemented, this move could provide a much-needed impetus to India’s corporate sector and attract fresh investments, particularly in manufacturing.

The reintroduction of the concessional tax rate will likely be a key focus area as stakeholders and policymakers deliberate on Union Budget 2025 proposals.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice.

Budget 2024-25: Government simplifies merging of tax exemption regimes, TDS norms and tax benefits for charities

News Desk — Thu, 16 Jan 2025 04:03:40 +0000

The Central Board of Direct Taxes (CBDT) has delivered on key budget promises for 2024-25, introducing measures to simplify tax processes for charities and rationalize Tax Deducted at Source (TDS) rates. These reforms aim to streamline compliance and enhance clarity for both organizations and taxpayers.

Key Announcements:

Merging of tax exemption regimes:
- Two tax exemption schemes for charities have been merged into a single scheme to provide better clarity and ease of operation.
- Streamlined timelines for registration and approval processes for charitable trusts and institutions have been introduced.
TDS and TCS rationalization:
- The 5% TDS rate on several payments has been merged into the 2% rate.
- The 20% TDS rate on the repurchase of mutual fund or UTI units is being withdrawn.
- The TDS rate for e-commerce operators under Section 194-O has been reduced from 1% to 0.1%.
- Credit for TCS (Tax Collected at Source) will now be taken into account when deducting TDS on salaries under Section 192(1).
- Section 192(2B) has been amended to include all types of TDS or TCS for better integration.
Decriminalization and standardization:
- Section 276B of the Income Tax Act, 1961, has been amended to decriminalize delays in the payment of TDS, provided payments are made before the due date of filing the statement.
- A standardized operating procedure for addressing TDS defaults has been proposed to simplify and rationalize the compounding guidelines for such defaults.
Refund process improvement:
- Employees can now claim refunds for TCS directly in their respective Income Tax Returns (ITR), streamlining the process and mitigating cash flow issues.

These measures are expected to reduce compliance burdens, enhance cash flow management for taxpayers, and improve operational efficiency for charitable organizations. Additionally, they underscore the government’s focus on fostering a simpler and more inclusive tax environment.

The changes reflect a broader push to modernize tax administration and make the system more taxpayer-friendly, benefiting both individuals and institutions across the country.

Income Tax Department targets tax evasion in educational institutions: Report

Aditya Bhagchandani — Tue, 14 Jan 2025 10:34:17 +0000

The Income Tax Department has launched a nationwide crackdown on tax evasion by schools, focusing on institutions suspected of malpractice such as selling seats to avoid taxes, according to Zee Business.

On Monday, officials conducted a survey at R Mangalam School in Delhi-NCR, which operates 14 schools and colleges across India. The survey followed complaints alleging tax violations, including the misuse of provisions meant for Economically Weaker Section (EWS) seats.

Sources of Zee Business revealed that the Exemption Wing of the department has been monitoring irregularities in educational institutions for an extended period. Allegations include the sale of regular and reserved seats, violating the principles of affordable education.

The move reflects the government’s aim to ensure transparency and accountability among institutions benefiting from tax exemptions. Further investigations and actions are expected based on the survey findings.

India’s December GST collections rise 7.3% YoY to Rs 1.77 lakh crore

Aditya Bhagchandani — Wed, 01 Jan 2025 10:11:47 +0000

Goods and Services Tax (GST) collections rose to ₹1.77 lakh crore in December 2024, staying above the ₹1.7 lakh crore mark for the tenth consecutive month, according to data released on January 1. This represents a 7.3% increase from ₹1.65 lakh crore collected in December 2023. However, the collections were lower than the record ₹2.1 lakh crore achieved in April.

GST Revenue Breakdown:

Integrated GST (IGST): ₹91,200 crore
State GST (SGST): ₹40,500 crore
Central GST (CGST): ₹32,800 crore
GST Cess: ₹12,300 crore

Economic Indicators:

A rise in GST revenues suggests improved economic performance compared to the previous quarter. The Indian economy, however, faced challenges in the second quarter of FY25, with growth slowing to a seven-quarter low of 5.4%, down from 6.7% in the April-June period.

This robust GST mop-up highlights steady tax compliance and economic activity despite broader economic challenges.

55th GST Council Meeting: Council hikes 18% GST on used EVs

Aditya Bhagchandani — Sat, 21 Dec 2024 13:47:44 +0000

The 55th GST Council Meeting has announced a revised GST structure for used electric vehicles (EVs) in a bid to promote the adoption of new EVs while addressing taxation clarity for used ones.

Key decisions on EV taxation:

New EVs:
- GST rate: 5%
- This preferential rate continues to encourage the purchase of new EVs and drive India’s green mobility goals.
Used EVs:
- Sold between individuals: No GST will be applicable.
- Sold by companies or after modification for resale:
  - GST rate: 18%
  - Tax applied on the margin value (difference between purchase price and selling price).

Finance Minister Nirmala Sitharaman clarified that the decision to impose an 18% GST on used EVs was reached after detailed discussions. While a 5% rate was initially proposed, the Council decided on 18% to balance revenue needs and ensure a consistent tax framework.

This move aims to create a level playing field while incentivizing the adoption of newer, more efficient electric vehicles.

55th GST Council Meeting: Council clarifies GST rates for salted and caramelized popcorn

Aditya Bhagchandani — Sat, 21 Dec 2024 13:38:23 +0000

The 55th GST Council Meeting in Jaisalmer has agreed to issue a clarification on the taxation of popcorn, addressing different GST rates based on packaging and composition. The Council confirmed that there is no change in the tax rates, but a circular will be issued by the Central Board of Indirect Taxes and Customs (CBIC) to eliminate ambiguities.

Key clarifications on popcorn GST rates:

Ready-to-eat salted popcorn (unpackaged):
- Tax rate: 5%
- Classified as namkeens if not pre-packaged and labelled.
Pre-packaged and labelled salted popcorn:
- Tax rate: 12%
- Applies to ready-to-eat salted popcorn mixed with spices and sold in pre-packaged and labelled form.
Caramelized popcorn:
- Tax rate: 18%
- Classified as sugar confectionery under HS 1704 90 90 due to its composition with added sugar.

The Council emphasized the importance of clear classifications, noting that salted popcorn retains the character of a namkeen, while caramelized popcorn falls under the sugar confectionery category due to its ingredients. The CBIC’s circular aims to ensure uniform compliance and understanding of the current taxation regime.

What Are the TDS Rules for Fixed Deposit Interest in India?

News Desk — Fri, 13 Dec 2024 03:18:46 +0000

One of India’s most popular investment instruments is Fixed Deposits, which yield returns in the form of principal and interest payouts. Fixed Deposits are considered to be one of the safest investment instruments in India. However, most investors are unaware of the information related to TDS on FD interest earned. Knowing the TDS rules regarding Fixed Deposit interest can help you plan your finances effectively and save you from any surprises during the filing season. This article covers the rules of TDS in India for FD interest, including exemptions, rates, and important forms.

TDS on Fixed Deposit Interest: An Overview

In India, the TDS on FD interest varies depending on the institution providing the deposit facility and the investor’s age. The tax deduction thresholds are different for banks and Non-Banking Financial Companies (NBFCs). Understanding these aspects allows investors to plan their finances better.

TDS on Bank Fixed Deposits

For Fixed Deposits with banks, the TDS is applicable if the total interest earned exceeds Rs. 40,000 for citizens below 60. The exemption limit for senior citizens is higher, set at Rs. 50,000 per financial year. The TDS rate on FD interest for both age groups is 10%, provided that PAN details have been submitted to the bank. In the absence of PAN, the TDS is 20%.

If your interest income from bank FDs surpasses these thresholds, the bank will deduct 10% of the excess amount as TDS before crediting the interest to your account. For instance, if a non-senior citizen earns Rs. 50,000 in interest from a Fixed Deposit, TDS will only apply to Rs. 10,000 (the amount exceeding the threshold of Rs. 40,000). Therefore, Rs. 1,000 will be deducted as TDS.

For investors looking to invest in reliable institutions for their Fixed Deposit needs, major banks like ICICI Bank are the ideal choice. These banks offer attractive interest rates while ensuring TDS deductions and transparency regarding tax implications.

TDS on Non-Banking Financial Companies (NBFCs) FDs

The rules for TDS on Fixed Deposits for NBFCs differ slightly. The threshold limit for TDS on FD interest for NBFCs is significantly lower, at Rs. 5,000. If an investor earns more than Rs. 5,000 in interest from an NBFC FD, the TDS will be deducted at a rate of 10%.

Moreover, if you have not provided your PAN details, the TDS rate doubles to 20%. This emphasises the importance of sharing your PAN details to avoid higher tax deductions.

TDS Calculation and Filing

When calculating TDS on Fixed Deposit interest payouts, you need to include the total interest earned from all your FDs in a financial year in your overall income. If the bank does not deduct TDS, you must declare this interest income in your Income Tax Return (ITR) under the “Income from Other Sources” section.

If TDS has already been deducted, you can view the details on Form 26AS, which summarises the TDS deducted against your earnings. The TDS amount will be adjusted against your final tax liability when you file your ITR.

TDS Exemptions and Forms

Understanding the exemptions and forms required for TDS on Fixed Deposits is crucial for maximising the tax benefit.

Exemption Limits for TDS Deduction on Fixed Deposits

You have to pay TDS only when the interest earned from your Fixed Deposit account is more than Rs. 40,000. For senior citizens, the exemption limit is up to Rs. 50,000. In case your entire tax liability is not more than Rs. 2.5 Lakh per year, then there will be no TDS deduction. Thus, people with lower incomes are more likely to save.

Forms 15G and 15H

Form 15G and Form 15H are documents submitted to avoid TDS on the interest earned from FDs. Form 15G is valid for citizens under 60 years old, and Form 15H is specifically for senior citizens. These forms state that the individual’s total income is less than the minimum taxation slab criteria for the financial year.

Submitting these forms at the beginning of the financial year ensures that TDS will not be deducted, and one gets the total interest earnings from Fixed Deposits.

Implications of TDS for Different Kinds of Investors

Indians living in India pay less TDS on the interest of a Fixed Deposit than Non-Resident Indians. TDS on the interest of FD for an Indian resident is 10% when PAN details are provided, while for an NRI, the rates are 30% up, as per the relevant tax laws applied.

TDS on FD Interest of Senior Citizen

For senior citizens above 60 years of age, there is an enhanced exemption of Rs. 50,000 of Fixed Deposit interest. This is to consider their financial requirements, allowing them to avail of more tax exemptions. The benefit one can get through Fixed Deposit Accounts in this age group can be up to Rs. 50,000, as per the provisions of the Income Tax Act in section 80 TTB without TDS.

This advantage is highly beneficial for senior citizens, as they rely on Fixed Deposits as one of their main sources of income. This allows them to maximise their returns with minimal tax liability.

TDS on FD Interest for Non-Senior Citizens

For citizens aged below 60 years, TDS on interest income from a Fixed Deposit is charged at 10% (when PAN is provided) as long as the interest income for the financial year is over Rs. 40,000. If the total income from FD interest is below the threshold exemption of Rs. 2.5 lakh for a year, then individuals can present Form 15G to the bank to avoid having TDS deducted.

If TDS is deducted and the overall income is below the exemption threshold, individuals can claim a refund while filing their annual returns. Maintaining a record of all the interest earned is imperative to ensure accurate reporting.

Conclusion

Understanding TDS on FD interest can play a huge role in your investment strategy. By understanding the thresholds, applicable rates, and procedures for filing the return, you can make an informed choice to maximise returns while complying with tax regulations. Always stay updated on the latest financial rules and consult experts when necessary to navigate the complexities of Fixed Deposits and taxation.

GoM proposes higher GST rate on luxury watches; final decision pending GST Council review

Aditya Bhagchandani — Tue, 03 Dec 2024 02:15:36 +0000

The Group of Ministers (GoM) on GST rate rationalization has proposed increasing the GST rate on luxury items, including high-value watches, as part of its efforts to align tax rates with product value. Currently, watches attract a GST rate of 28%, and the proposal could lead to an even higher rate, making them one of the most heavily taxed luxury items under the GST regime.

The move is aimed at ensuring that premium and luxury goods bear a higher tax burden, reflecting their non-essential nature. This proposal will be taken up for discussion at the GST Council meeting in Jaisalmer on December 21.

If implemented, the revised rates are expected to impact the pricing of luxury watches, potentially influencing consumer demand in this segment. The proposal is part of a broader strategy to rationalize GST rates, making essential items like food and daily-use products more affordable by reducing levies in those categories.

GoM proposes 35% GST on aerated drinks; Council to decide in Jaisalmer meeting

Aditya Bhagchandani — Tue, 03 Dec 2024 02:13:10 +0000

The Group of Ministers (GoM) on GST rate rationalization has recommended increasing the GST rate on aerated beverages to 35%, from the current rate of 28%. Currently, these beverages also attract a 12% compensation cess, making them one of the most heavily taxed items in the GST regime.

The proposal aims to align taxation with the perceived luxury or non-essential nature of aerated drinks, regardless of their sugar or fruit content. This recommendation will be reviewed at the GST Council meeting on December 21 in Jaisalmer.

If approved, the move is likely to increase the cost of carbonated beverages, impacting both manufacturers and consumers. The proposal is part of a broader initiative by the GoM to restructure GST rates to align them with product value, ensuring that high-value or non-essential goods attract higher tax rates while reducing levies on essential items.

GoM proposes 35% GST on tobacco products

Aditya Bhagchandani — Tue, 03 Dec 2024 02:11:02 +0000

The Group of Ministers (GoM) on GST rate rationalization has recommended increasing the GST rate on tobacco products to 35%. Currently, tobacco products are taxed at 28%, along with a compensation cess ranging from 11% to 290%, depending on the product type. This makes tobacco among the most heavily taxed items under the GST regime.

Tobacco leaves are an exception, taxed at 5% under the reverse charge mechanism, where the buyer, rather than the seller, remits GST to the government.

The GoM’s proposal will be deliberated at the GST Council meeting scheduled for December 21 in Jaisalmer. If implemented, the higher GST rate would further raise the cost of tobacco products, aligning with the government’s broader objective of discouraging tobacco consumption through taxation.

This proposal comes as part of the GoM’s larger effort to rationalize GST rates, ensuring that luxury and high-risk items like tobacco attract higher levies while reducing taxes on essential goods. The move is expected to impact manufacturers, suppliers, and consumers of tobacco products significantly.

GoM proposes 35% GST on tobacco, aerated drinks; Council to discuss on December 21

Aditya Bhagchandani — Tue, 03 Dec 2024 02:09:54 +0000

The Group of Ministers (GoM) on GST rate rationalization has recommended increasing the GST rate on tobacco and aerated beverages to 35%. Currently, tobacco products are taxed at 28% GST, along with a compensation cess ranging from 11% to 290%, making them one of the most heavily taxed items in the GST framework. Tobacco leaves are an exception, taxed at 5% under the reverse charge mechanism.

Aerated beverages, irrespective of their sugar or fruit content, are presently taxed at 28% GST, with an additional 12% compensation cess. The proposed changes, if approved, would further increase the tax burden on these items.

The recommendations, made under the chairmanship of Bihar Deputy Chief Minister Samrat Choudhary, will be deliberated upon in the upcoming GST Council meeting scheduled in Jaisalmer on December 21. The six-member GoM also includes finance and revenue ministers from states like Uttar Pradesh, Rajasthan, Karnataka, West Bengal, and Kerala.

In addition to tobacco and aerated drinks, the GoM is also reviewing tax slabs for a variety of goods, including luxury items such as handbags, watches, and cosmetics, and essential goods like bottled water and bicycles. The panel aims to align tax rates with product value, ensuring high-value goods attract higher GST rates while reducing levies on daily-use items.

Sources also revealed that the GoM is considering lowering the GST on health and life insurance premiums, currently taxed at 18%, to make these essential services more affordable. These proposals reflect broader efforts to reform GST structures and promote equity in taxation.

Government removes windfall tax on petrol, diesel, ATF, and crude exports

Aditya Bhagchandani — Mon, 02 Dec 2024 07:18:17 +0000

The Indian government has officially decided to remove the windfall tax on petroleum products, including petrol, diesel, aviation turbine fuel (ATF), and crude oil exports. This decision is expected to have significant implications for the energy sector, potentially boosting exports and reducing operational costs for energy companies.

The windfall tax, which was initially implemented to curb excess profits from high crude oil prices, is now being lifted as crude prices stabilize globally.

Finance Minister Nirmala Sitharaman laid papers on the table to revoke specific excise duties, including the Special Additional Excise Duty (SAED) on the production of petroleum crude and on exports of Aviation Turbine Fuel (ATF), motor spirit, and high-speed diesel oil.

Additionally, the government has decided to rescind the Road and Infrastructure Cess (RIC) on exports of motor spirit and high-speed diesel oil. These measures, published under Notification Nos. 29/2024 and 30/2024 of the Central Excise Act, 1944, reflect the government’s intent to boost the competitiveness of Indian energy companies and align with the global stabilization of crude oil prices. The decision is likely to benefit key stakeholders in the oil and energy sectors, enhancing exports and operational efficiency.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

NLC India gains capital gains tax exemption for renewable asset transfer to NIRL

News Desk — Wed, 27 Nov 2024 16:35:50 +0000

NLC India Limited has announced that the Ministry of Finance, through a Gazette notification dated November 27, 2024, has exempted the company from paying capital gains tax on the transfer of its renewable energy assets to its wholly owned subsidiary, NLC India Renewables Ltd (NIRL). This transfer is part of a plan approved by the Central Government under clause (viiaf) of Section 47 of the Income Tax Act, 1961.

The notification formalizes the transfer of capital assets from NLCIL to NIRL, ensuring that the company benefits from tax exemptions for this move. This step aligns with the government’s push to support renewable energy initiatives while simplifying asset restructuring within public sector companies.

NLC India confirmed that this development would not result in any additional financial burden and reaffirmed its commitment to complying with all regulatory requirements.

LIC files appeal against ₹1,050 crore GST demand

News Desk — Wed, 27 Nov 2024 16:31:06 +0000

Life Insurance Corporation of India (LIC) has filed an appeal before the GST Appellate Authority in Tamil Nadu against a demand order issued by the Joint Commissioner, Chennai, for the financial year 2019-20. The order demanded GST of ₹1,049 crore, along with interest of ₹45.5 lakh and a penalty of ₹110.3 crore.

The company clarified that while the financial impact includes the GST, interest, and penalty, there is no material effect on its financials, operations, or other activities. LIC remains committed to resolving the matter and has made the appeal to seek relief against the demand. Further updates will be shared on the corporation’s website.

The Role of Corporate Tax in Shaping Global Trade Policies

News Desk — Tue, 19 Nov 2024 04:14:01 +0000

Corporate tax greatly impacts global trade policies, influencing where companies choose to operate, how nations structure trade agreements, and even how countries position themselves in international markets. As businesses expand internationally, they often seek out regions with favorable tax systems. Through this post, we’ll explore how corporate tax shapes global trade policies and why this relationship matters for businesses and economies.

What is Corporate Tax?

So, what is corporate tax? Simply put, it’s a tax on the profits earned by businesses. Beyond revenue, corporate tax is a key economic tool. By adjusting tax rates and providing incentives, governments encourage companies to invest locally, affecting trade, employment, and the broader economy.

Corporate tax rates differ widely across countries. Some nations impose higher taxes to fund development, while others attract investment with lower rates or exemptions. This variation influences global trade as companies assess the benefits of launching operations in regions with favorable tax structures.

Corporate tax planning is essential for companies to reduce tax liabilities legally. It includes several approaches, each tailored to different needs.

Purposive Tax Planning involves calculated decisions to meet specific financial goals, using deductions, credits, or exemptions to lower taxable income. Permissive Tax Planning focuses on taking advantage of existing tax incentives or allowances within tax laws, optimising tax savings without pushing ethical boundaries. Aggressive Tax Planning makes the most of legal loopholes for maximum tax reduction, though it often tests ethical limits.

For short-term gains, Short-Range Tax Planning addresses immediate tax-saving opportunities within a fiscal year, adapting to current tax challenges. Meanwhile, Long-Range Tax Planning is strategic, spanning years to support long-term business objectives, often involving careful structuring of investments and operations for sustained tax efficiency.

Each type offers unique benefits depending on a company’s goals and timeframe.

Role of Corporate Tax in Shaping Global Trade Policies

Now that you know the basics, let’s get to now more about the role of corporate tax in global trade policies:

1. Attracting Foreign Investment and Stimulating Trade

Corporate tax policies play an important role in attracting foreign investment that drives trade and economic growth. The tax cuts or incentives of a country attract businesses and create a favorable environment for businesses to come and establish production facilities or distribution centers, positively affecting jobs in the local economy and infrastructure.

However, constant tax reductions to attract investment can create a “race to the bottom,” where countries lower taxes to stay competitive. This can reduce government revenue, impact important services, or risk losing investors if taxes remain too high.

2. Transfer Pricing’s Role in Trade

Transfer pricing allows multinational corporations to set aside profits and expenses across countries, often shifting profits to regions with lower taxes. This method can impact how much revenue high-tax countries collect, affecting trade balances.

To counteract profit shifting, countries enforce transfer pricing rules to provide fair pricing for transactions within the same organization. This safeguards a country’s tax base and maintains a balanced trade.

3. Tax Havens and Trade Disruption

Tax havens, or regions with low or zero corporate tax rates, attract businesses wanting to minimize their taxes. While cost-effective for companies, this practice changes trade patterns and impacts both high-tax and low-tax countries.

Using tax havens has faced criticism as it diverts taxable income from home countries, impacting public revenue. To address this, international bodies have initiated projects to promote fairer tax practices.

Indian companies often set up subsidiaries in low-tax regions like Mauritius, reducing tax liabilities but affecting domestic revenue. The push for transparency is growing, with global regulations limiting tax haven use to create a fairer playing field.

4. Setting Fair Competition with Global Tax Standards

Variations in corporate tax rates create competition issues. Countries with low taxes can give companies an edge, allowing them to price goods more competitively. This difference can hurt businesses in high-tax countries, leading to calls for fairer global tax standards.

The OECD’s proposed global minimum corporate tax rate looks to address these imbalances by establishing a baseline, promoting fair competition across borders. A tax consultant provides guidance on complying with new tax standards, helping companies adapt while avoiding penalties.

5. Increasing Trade with Double Taxation Agreements (DTAs)

Double taxation agreements (DTAs) are very important for international trade. Without DTAs, companies could pay tax twice on the same income – in the country where it’s earned and in their home country. DTAs protect companies from double taxation, encouraging them to expand and trade globally.

India has signed numerous DTAs, outlining tax obligations and creating smoother trade relations by clarifying tax responsibilities. DTAs simplify tax obligations, allowing smaller companies to expand into new markets with less complexity.

Conclusion

Corporate tax influences global trade policies by shaping investment flows, trade balances, and economic stability to a large extent. Understanding what is corporate tax shows it’s more than a revenue stream – it’s a powerful tool for economic strategy and international competitiveness. Policies like transfer pricing regulations, double taxation agreements, and global tax standards create a more balanced trade environment.

Tax policies would eventually be fairer, and the world would benefit from this as companies and governments come to terms with the changes. Businesses in transformation need consultants on tax know-how for compliance and tax efficiency.

By implementing fair and transparent tax practices, countries can create a stable trade environment, encouraging businesses to expand, invest, and innovate. As global trade policies develop, the role of corporate tax will continue to evolve, reflecting the balance between growth, fairness, and economic stability.

Vedanta receives ₹319.79 crore tax demand order for Videocon’s OID cess share in Ravva block

News Desk — Wed, 13 Nov 2024 12:37:54 +0000

Vedanta Limited (NSE: VEDL) confirmed it has received an order from the Office of the Principal Commissioner of Central Tax in Visakhapatnam, demanding a penalty amounting to ₹319.79 crore related to the Oil Industry Development (OID) Cess for Videocon Industries Limited’s share in the Ravva oil and gas block. The demand pertains to non-payment of OID Cess for Videocon’s share from December 2019 to March 2023.

Key Details:

Entity Involved: The tax demand is solely for Videocon Industries Limited’s share in the joint venture, with no financial liability on Vedanta’s share.
Impact on Vedanta: Vedanta clarified that it does not anticipate any operational or financial impact on the company itself, as the penalty is specific to Videocon’s obligations.
Next Steps: Vedanta is evaluating the order and considering an appeal to the appropriate appellate authority.

This development reflects Vedanta’s commitment to compliance, as the company takes steps to address this matter with the concerned authorities.

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice.

GST on commercial rent: RCM, ITC, and landlord categories explained

News Desk — Thu, 07 Nov 2024 04:59:06 +0000

A detailed overview of GST implications on commercial rent highlights different scenarios based on landlord registration status and tenant type. Here’s a breakdown:

Registered Landlords

For landlords registered under GST, a 18% GST is charged on commercial rent. The tenant pays rent plus GST to the landlord, who is responsible for discharging the GST liability to the government.

Unregistered Landlords

If the landlord is unregistered, the responsibility to pay GST falls on the tenant, provided the tenant is registered under GST. In this case, the tenant pays GST directly to the government under the Reverse Charge Mechanism (RCM).

Tenant Composition Scheme

Tenants under the GST composition scheme bear the GST cost as an additional expense, as they are not eligible for Input Tax Credit (ITC). However, regular taxpayers can claim ITC on the GST paid under RCM.

Small Landlords

RCM does not apply to landlords who fall below the GST registration threshold (₹20 lakh or ₹10 lakh in special category states). Additionally, if both the landlord and tenant are unregistered, GST is not applicable.

ITC for Tenants

Tenants paying GST under RCM can claim ITC, but only if the rented property is used for business purposes.

Rate of CGST

The GST rate on commercial rent remains 18%, regardless of whether it is paid by the landlord or through RCM.

SAC Code

The Service Accounting Code (SAC) for renting immovable property is 997212, covering both short-term and long-term leases.

This overview provides clarity on GST obligations for landlords and tenants, including conditions for ITC and exemptions for small landlords.

Decoding the Recent GST Rate Changes: What Businesses Need to Know

News Desk — Tue, 29 Oct 2024 05:53:24 +0000

Read about the recent changes in GST rates, their impact on businesses, and consumer behaviour. Learn key strategies for adapting, managing costs, and ensuring compliance amid evolving tax laws.

Understanding the Recent GST Rate Changes

GST rate, in simple words, are percentage rates of tax levied on the sale of goods and services under the CGST, SGST, and IGST Acts. According to the GST law, a registered business must raise its invoices with the GST amount charged on the value of supply.

The GST rates in CGST and SGST (In case of intrastate transaction) are around the same. However, the GST rate in case of IGST (In case of inter state transactions) is around the summation of CGST and SGST rate.

The CBIC has categorised the slabs of GST rates in India into five categories, which include 0%, 5%, 12%, 18%, and 28%. Apart from the above five percentages of GST rates, certain goods and services are charged along with a cess, which is a surcharge collected over and above the GST rate. This CESS is collected to compensate the state for the loss of revenue in any event of the rule on GST.

The slabs GST regularly liable to pay a regular taxpayer are 0%, 5%, 12%, 18%, and 28%. The lesser-used rates, however, are 3% and 0.25%. More importantly, taxable composition persons have to pay General Service Tax at the lowest or nominal rates between 1.5% and 6% of their turnover.

Latest GST Rate Revisions from the 53rd GST Council Meeting

The 53rd GST Council meet was held on 22nd June 2024, which was presided over by Union Finance Minister Nirmala Sitharaman. There are some key proposals forwarded for the amendment of the GST structure in its current version. Highlights of the 53rd GST Council Meeting:

All sorts of milk cans made of steel, iron, and aluminium are to be charged with a uniform 12% GST rate
A 12% GST rate will now be levied on all solar cookers, single as well as dual energy sources.
A 12% GST rate is now being levied on all kinds of sprinklers, which may be fire and water
5% IGST will be levied on import of aircraft parts, components, testing equipment, tools, and toolkits without any HS classification
Indian Railways offers certain services that are exempted from GST. These include sales of platform tickets, access to retiring rooms/waiting rooms, cloakroom service, and battery-operated car service
All intra-railway transactions are also exempt from GST.
The accommodation service of a hostel, provided that some conditions are fulfilled, is exempt from GST
These include: Students or working professionals staying continuously for at least 90 days in an off-campus hostel whose monthly rent is ₹20,000 or less per person will be exempt.

New GST Rates List in India for 2024

Between 2023 and 2024, GST tax rates for several products and services were revised. Below is a summary of these changes:

Category	Old GST Rates	New GST Rates
Railways Goods and Parts (Chapter 86)	12%	18%
Pens	12%	18%
Metal Concentrates and Ores	5%	18%
Certain Renewable Energy Devices	5%	12%
Recorded Media Reproduction and Print	12%	18%
Broadcasting, Sound Recordings, and Licensing	12%	18%
Printed Material	12%	18%
Packing Containers and Boxes	12%	18%
Scrap and Polyurethanes	5%	18%

GST Rate Recommendations from the 53rd GST Council Meeting (June 2024)

Items	Old Rate	New Rate
A uniform rate for all types of milk cans	–	12%
A uniform IGST rate applies to imports of aircraft toolkits	–	5%
Carton boxes and cases	18%	12%
All types of solar cookers	5%	12%
A uniform rate for all types of sprinklers	–	12%
Indian Railways – Platform tickets	–	Exempt
Indian Railways – Retiring rooms/waiting rooms	–	Exempt
Indian Railways – Cloakroom services	–	Exempt
Indian Railways – Battery-operated car services	–	Exempt
Hostel accommodation services (under specific conditions)	–	Exempt

Implications On Businesses

All the more important for businesses, since it directly affects the pricing strategy, profit margins, and absolutely so in compliance matters, are GST rates. Now, here are a few implications of the same:

Increased competitiveness: If GST is reduced, the products or services may become cheaper, thereby increasing demand and ultimately sales.
Stimulated economic activity: The more a low rate of GST is, the more it gives impetus for consumer spending and business investment, which can lead to economic activity. This will decrease the input cost for the business firms, ultimately decreasing their overall cost, and hence profitability.
Tax compliance becomes easy: The structure of GST reduces the complexity. Such a move can also decrease the burden on businesses to comply and enhance compliance
Revenue of governments decreases: Lower GST rates decrease revenue for governments, which is further subject to changing public services
Increased costs to some businesses: If, for example, the GST rate on inputs used by a business increases, then so will the total cost to the business and profit decreases
Uncertainty and dislocation: Changes in the GST rates too frequently would lead to uncertainty and dislocate business plans
Proportionate likelihood of price hike: Businesses might absorb the increased cost or raise their prices.

Strategies for Adapting to GST Rate Changes

Businesses should regularly monitor GST updates and adjust their pricing strategies to reflect the new rates. They should also streamline their accounting and tax filing processes to ensure compliance. Effective communication with customers and suppliers is essential to manage expectations and maintain transparency about any price adjustments due to GST changes. Here are some ways businesses can adapt for GST rate changes:

Pricing Adjustments

To effectively adapt to GST rate changes in pricing adjustments, businesses should conduct a thorough analysis of the impact of the rate change on product costs, revenue, and profitability
Re-evaluate pricing structures to ensure they remain competitive and profitable.
Communicate changes transparently to customers and suppliers to maintain trust and relationships
Consider alternative strategies such as cost reduction or value-added services to mitigate the impact of increased costs
Monitor market trends and competitor pricing to stay informed and adjust pricing accordingly.

Cost-Cutting Measures:

GST rate changes through cost-cutting measures, businesses should Review supply chain for opportunities to negotiate better deals or find more cost-effective suppliers
Optimise inventory management to reduce holding costs and avoid unnecessary stockpiling
Identify non-essential expenses and explore ways to reduce or eliminate them. Implement energy-efficient practices to lower utility costs
Invest in technology to streamline processes and improve efficiency
Consider outsourcing non-core activities to reduce overhead costs
Continuously monitor and evaluate the effectiveness of cost-cutting measures to ensure they align with business objectives.

Inventory Management:

The inventory management, thus, plays a very important role under the GST regime, as it affects the entire quantum of input tax credit and compliance. Thus, it would be imperative for a retailer to have inventory management systems that are tied in with their GST software in order to maintain an accurate stock record.

Long-Term Effects on Consumer Behavior

Over time, GST rate changes can significantly influence consumer behaviour, as price adjustments may affect purchasing decisions. Higher tax rates could lead to reduced demand for certain products, while lower rates may encourage increased consumption. Consumers may also become more price-sensitive, favouring goods and services with lower GST rates. Here are some long term effects on consumer behaviour:

Shift in Consumption Patterns

The implementation of GST has dramatically reshaped consumer behaviour, driving a substantial growth in online shopping as consumers seek the convenience and simplified tax structure it offers. Moreover, heightened awareness of health and hygiene has led to a significant increase in demand for essential products like sanitizers, masks, and health supplements. Amidst the economic uncertainty created by GST, consumers have become more cautious about their spending, prioritising essential goods and services over luxury items. These shifts in consumer behaviour have forced businesses across various industries to adapt their strategies to meet the evolving needs of the market, emphasising the profound impact of GST on the overall consumption landscape

Impact on Local Businesses

Other sectors, such as food, hospitality, textiles, and consumer goods, will incur higher costs on some products and services considering the recent revisions in GST rates. Otherwise, it could negatively impact profit margins unless it is passed to customers. This requires updating of SMEs so that they comply with the said changes and do not incur penalties. They may be required to change their pricing strategy, revisit agreements with the vendors and update their accounting systems according to the new rates in an appropriate manner.

Seeking Professional Advice

Seeking professional advice ensures that businesses navigate complex regulations with expert guidance, minimising risks and maximising compliance. Consult top lawyers and professionals today For expert guidance.

GST Consultants

GST consultants are experts at managing the Goods and Services Tax compliance of businesses and individuals. They provide services that aid in the GST registration, timely return filing, and tax computing work so that all tax liabilities are met without threatening the prospect of penalty. GST consultants can even guide on applying ITC, keeping businesses abreast of latest rules from GST, thus, streamlining business operations and healthy financial management.

Tax Planning

Tax planning is the study of financial situations to derive maximum tax savings in a totality compliant manner with tax laws. It involves using professional tax planners guiding individuals and businesses on available eligible deductions, credits, as well as strategic investments available to them in order to minimise the tax liabilities. They also assist in positioning the operations to minimise taxes and creating projections for long-term taxes so that all financial goals are covered with efficiency while remaining within the legality of the issue at hand.

The Future of GST in India

Integration With Digital Platforms

During the last few years, digital platforms have significantly supported the right of living. In all likelihood, an integrated GST system would work to its full potential with Digital Platforms, making the processes easy for taxpayers in taxpayers’ compliance with tax regulations. To facilitate easy return filing under GST and make the process easier and more convenient for taxpayers, more digital tools should be brought forward by the government. This would also reduce compliance burdens on taxpayers and increase tax return accuracy.

Implement GST on e-commerce

E-commerce is one of the fastest-emerging sectors in India. Still, the present GST framework does not cover all the transactions related to e-commerce transactions, thereby propelling a major chunk of tax evasion. In the future, the government is likely to implement GST on e-commerce transactions, which will enhance the compliance rate and deter tax evasion.

Improvement in GST Revenue

The government earned revenue by raising tax due to the imposition of GST. However, low compliance rate and mismatch in input tax credit claims by taxpayers have been major loss revenue for the government. Hence, the prospect of GST revenue would brighten in the future as more and more taxpayers get registered under the GST system and enjoy tax compliance. Another area where the government is supposed to take more steps in addition to improving the GST revenue is by increasing the tax base and reducing tax evasion.

Improved GST Compensation To The States

The other objective of GST has to be that the businesses ought to function seamlessly and, in turn, compensate the states for any loss of revenue. However, low compliance rate and mismatch of the input tax credits claimed by the taxpayers have resulted in significant loss of revenue to the government and the states. Thus, we can see improvement in GST compensation to the states with rising compliance rates and a decrease in the mismatch of the input tax credits.

Conclusion

The recent GST rate changes present both opportunities and challenges for businesses. While lower rates may boost competitiveness and economic activity, higher input costs and frequent adjustments can create uncertainty. To navigate these changes, businesses must stay agile by adjusting pricing, optimising costs, and seeking professional advice.

The future of GST in India promises integration with digital platforms and improved compliance, but businesses must remain proactive in adapting to tax reforms to sustain profitability and growth. As GST evolves with digital integration and new regulations, Zolvit ensures your business stays compliant, efficient, and ahead of the curve. Register your GST here with Zolvit. Let the experts simplify your GST needs, so you can focus on growth and profitability.