Do remember, it is not a bonus or extra income. It is excess tax being returned, make it work for you

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Do remember, it is not a bonus or extra income. It is excess tax being returned, make it work for you
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Taxman knows more than you think: Here's why clean ITR filing matters
Some taxpayers underreport income or inflate deductions in order to save money that goes to the government. But experts warn that this is a high-stakes gamble in today’s data-driven tax environment. With the Income Tax Department now armed with sophisticated tools and deep access to financial information, from your bank transactions and property deals to your stock market activity, there’s little room to hide.
Taxman’s eyes everywhere: What the department already knows “The Income Tax Department gets financial data from multiple channels, banks, mutual funds, employers, registrars, and more,” says Suresh Surana, charter accountant.
This includes:
TDS/TCS details from Form 24Q/26Q
High-value transactions under the Statement of Financial Transactions (SFT)
Integrated PAN-linked records from property sales, share investments, and foreign remittances
Salary, rent, capital gains, and GST data through the Annual Information Statement (AIS) and Form 26AS
According to Kinjal Bhuta, secretary of the Bombay Chartered Accountants’ Society, the department also uses “AI tools, regulatory data-sharing, and even social media activity” to detect suspicious patterns.
Common mistakes (and misdeeds) that can trigger trouble From fudging rent receipts to ignoring side income, many taxpayers, especially salaried and self-employed, unknowingly (or knowingly) cross the line.
“False Section 80C claims, hiding freelance income, or underreporting cash sales are frequent issues,” says Sudhir Kaushik, chief executive officer of TaxSpanner. Surana adds that claiming deductions without valid proofs or routing business income through personal accounts is another red flag.
Bhuta also warns against “non-disclosure of foreign assets, ignoring bank interest, or assuming that TDS alone covers tax obligations.”
Penalties can be steep, even jail time
Taxpayers caught misreporting face penalties under Section 270A:
50 per cent of tax due for underreporting
200 per cent if it’s deemed wilful misreporting
“In extreme cases,” says Surana, “Section 276C can trigger prosecution with jail up to seven years if tax evasion exceeds Rs 25 lakh.”
Kaushik concurs, “With AIS and digital tracking, ignorance is no longer a valid excuse.”
Staying safe: Honest filing starts with these steps
Experts say the best protection is vigilance.
Cross-check prefilled ITRs with your Form 16, AIS and TIS
Report all income salary, capital gains, FD interest, foreign income
Correct mismatches, if any, and maintain proof for deductions
“Even exempt income like agricultural earnings should be disclosed,” says Bhuta.
TaxBuddy’s founder, Sujit Bangar adds, “AIS should be your checklist. If a transaction appears there, explain or report it.”
In short, clean filing is no longer optional, it’s critical.
As Kaushik puts it, “Tax transparency is tighter than ever. The best strategy is to stay ahead by being accurate.”
Source Link:https://www.business-standard.com/finance/personal-finance/taxman-knows-more-than-you-think-here-s-why-clean-itr-filing-matters-125062000769_1.html
Website Link:https://www.taxbuddy.com/
ITR Filing 2025: How Salaried Taxpayers Can Maximise Their Refunds
For some salaried taxpayers, the tax return season may feel like a chore, yet it is also one of the few chances to get some money back, especially if too much tax was deducted over the year. With the ITR filing window now open for ITR 1 and ITR 4, this is a crucial time for salaried employees to know how they can maximise their refunds this year.
Not always but sometimes there’s a real possibility that you have overpaid taxes, without even realising it. This usually happens when your employer deducts more tax than required or when you forget to account for deductions that never made it into your Form 16. It could be rent receipts you didn’t submit on time, a last-minute ELSS investment, or home loan interest that didn’t get factored in. Whatever the case, filing your return is how you claim that excess tax back.
What Triggers a Refund?
There are a few common scenarios where salaried people end up paying more tax than necessary:
You have changed jobs during the year and both employers deducted tax assuming you had no other income
You invested in tax-saving instruments late but after the declaration deadline
Deductions were not submitted to the employer, so your full exemption was not considered
You paid advance tax or self-assessment tax based on an overestimated liability
The bottom line for this is if any of the above happened to you, you will likely get a refund, but only if you file your income tax return.
Which Tax Regime Should You Pick?
There’s no individual answer to this question since it’s not a one-size-fits-all decision anymore. The old regime allows you to claim deductions for everything from life insurance premiums to housing loan interest and children’s tuition fees. The new regime offers lower slab rates but no deductions.
If you have made a bunch of investments and paid rent, the old regime might work out better. If not, the new one could be simpler and lighter.
What should you do?
Use a tax calculator that lets you compare both regimes after entering your actual numbers, not assumptions. Don’t just go by what your colleagues are doing.
Says Sujit Sudhakar Bangar, founder, TaxBuddy.com, “This year the new tax regime is the default tax regime. Therefore, if you don’t select the old tax regime, the new regime would be applied by default. Therefore, one needs to be very cautious while selecting the appropriate tax regime. Wrong selection of tax regime would directly have an impact on enhanced tax outgo and reduced refunds.”
How To Maximise Your Refunds This Year?
Bangar notes that the best possible hack for salaried employees to maximise their refund is restructuring of CTC. “You can request your employer to put a certain portion of CTC as your employer's contribution to NPS. This will benefit in the new as well as old tax regime. And in turn help maximize refund.
Moreover, you should also check for deductions you can still claim. One of the most common mistakes people make is assuming that if it wasn’t declared to the HR team, it’s gone. That’s not true. When you file your return (under old tax regime), you can still claim:
80C deductions (up to Rs 1.5 lakh) which include PPF, EPF, ELSS, LIC, home loan principal, NSC, Sukanya Samriddhi
80D for health insurance for self and family, and even parents (senior citizens get higher limits)
24(b) home loan interest, up to Rs 2 lakh
HRA even if rent was not declared earlier, you can still claim it now
80G if you have donated to recognised organisations
80E education loan interest (no limit)
Interest on savings accounts up to Rs 10,000 under 80TTA
For documentation support to claim these deductions, you should through your bank statements, insurance receipts, rent agreements, and donation acknowledgements.
Reconcile All Your Income
If you have more than one employer, make sure to consolidate salaries from both. Each employer may have deducted TDS assuming they are your only one. When combined, your total income might push you into a higher slab, so it is on you to fix that while filing.
Also, check Form 26AS and the Annual Information Statement (AIS). These documents show all income reported to the tax department by banks, employers, and mutual funds. If something is missing in your return but shows up in these records, your refund might get delayed, or worse, you might get a notice.
Declare Even Exempt or Miscellaneous Income
Some kinds of income, like interest from savings accounts or tax-free PPF withdrawals, might be exempt, but you still need to report them. Same goes for dividend income, which is taxable beyond Rs 5,000 now, and capital gains from mutual funds. Declare all of it, clearly.
File Early
There is no upside to waiting. This year, the income tax department has extended the ITR filing deadline to September 15, 2025. With ample time to get your proofs and deduction claims together, you should try to file the ITR before the due date. Filing late returns may attract penalties from the taxman. Moreover, you can’t carry forward certain losses if you file after the deadline.
More importantly, the sooner you file, the sooner your refund arrives.
Source Link: https://www.outlookmoney.com/tax/itr-filing-2025-how-salaried-taxpayers-can-maximise-their-refunds
Website Link: https://www.taxbuddy.com/
New ITR Utility: Is landlord’s PAN card needed for claiming HRA while filing income tax return?
Every salaried employee who has an HRA component in salary and who wants to claim house rent allowance (HRA) income tax benefits need to submit the PAN number of the landlord if the annual rent is above Rs 1 lakh. Failing to submit the landlord's PAN to your employer for claiming rent HRA tax exemption, will result in losing the tax exemption.
Also submitting a false PAN number of landlords will result in you getting a tax notice and also losing the HRA tax exemption altogether. Earlier, the online ITR form or its utility did not have field to give details regarding the HRA. However, it has changed now, the income tax department has revised the utility, and it now requires taxpayers to give more details of the HRA claim by salaried employees. So does this mean that you have to give the landlord’s PAN card details while filing ITR?
Read below to know more about the importance of landlord’s PAN for your rent HRA tax exemption claim and what are the new compliance requirements for rent HRA tax exemption introduced in ITR filing of this year.
When do you need to get the PAN number from the landlord for claiming rent HRA tax exemption? If the annual house rent is above Rs 1 lakh, then you need to share your landlord’s PAN with your employer. The yearly rent of Rs 1 lakh comes to Rs 8,333 per month. Moreover, Rent HRA tax exemption benefit is available only under the old tax regime, such benefit will have to be necessarily forgone if you want to opt for the new tax regime.
To summarise, there can be four possible scenarios where a landlord's PAN number is important and required for claiming HRA rent tax exemption. The scenarios are:
Rent is Rs 8,333 per month (Rs 1 lakh/year) or below: You don’t need to submit landlord’s PAN number for claiming tax exemption of rent HRA.
Rent is above Rs 8,333 per month (above Rs 1 lakh/year) or above but up to Rs 50,000 per month: You need to get the PAN number of the landlord.
Rent is above Rs 50,000 per month: You need not only to get the PAN number of the landlord but also deduct TDS on house rent.
Monthly rental amount PAN of landlordTDS deduction from rent payment
Rs 8,333 Yes No
More than Rs 8,333 but up to
Rs 50,000 per month Yes No
More than Rs 50,000 Yes Yes
So, there are two income tax compliances to watch out for- 1. Is the rent above Rs 8,333 per month? And 2. If it is then is it above Rs 50,000 per month? If the answers to the first or second or both the questions are yes, then you need to get the landlord’s PAN number.
“If annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report the PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee. In cases where the landlord has a PAN but refuses to furnish it to the tenant, the tenant may not be able to claim HRA benefit altogether,” says Jain.
The idea behind this exercise of getting a landlord's PAN is to enable the government to track the rental transactions by matching the landlord’s PAN with your HRA. This is because if you are claiming HRA tax benefits then the landlord has to offer this income for tax purposes, if he doesn’t then there is an incident of income tax evasion.
What’s changed in rent HRA reporting in ITR for FY 2024-25? Under the new income tax return (ITR) excel utility for FY 2024-25 (AY 2025-26), there are notable changes in the way taxpayers need to report house rent allowances (HRA). Failure to report all the necessary information in the ITR, will also result in you losing the rent HRA tax benefits. In the new excel utility for ITR filing some of the new reportings which have been added are: ● Place of work ● Actual HRA received (A) ● Actual rent paid ● Details of salary as per Section 17 (1) ● Basic salary
Shubham Jain, Associate Director, Nangia Andersen India, says: “As of now, the landlord's PAN and his details are not required to be populated in the income tax return form but only submitted before the employer for consideration of tax deduction (TDS) on salary. The Income tax Department in its recent tweet has mentioned the need for enhanced disclosures in case of taxpayers claiming HRA. However, the same has not yet been incorporated in the income tax forms notified by the government yet.” Sujit Sudhakar Bangar, Founder, TaxBuddy.com, agrees with Jain and adds: “While filing ITR and for claiming HRA benefit, landlord details are not required to be given in ITR excel utility yet.”
When is rent HRA tax exemption available for employees? Only salaried employees who have a rent HRA component in their salary structure can claim tax exemption under Section 10 (13A). Non-salaried have to use Section 80GG to claim benefit of house rental payments made, but its conditions and rules are different from rent HRA tax exemption (Section 10 (13A)) The tax exemption for HRA benefit under Section 10 (13A) is the minimum of:
The total amount of HRA received
50 per cent of salary (Basic salary + Dearness Allowance) if living in metro cities or 40 per cent for non-metro cities
Actual Rent Paid - 10% of (Basic salary + DA)
Who can claim HRA tax exemption under Section 10 (13A)?According to chartered accountant Abhishek Soni, co-founder, Tax2Win, here’s who can claim HRA tax exemption under Section 10 (13A):
You should be a salaried employee: The tax benefits related to HRA exemption are available only to salaried individuals. A self-employed person cannot take advantage of this exemption.
Receive HRA as a part of your salary package/CTC: The CTC or salary package includes basic salary, allowances, perquisites, etc. You must ensure that HRA is included in your CTC to take advantage of this exemption.
Stay in rented accommodation: This exemption can only be claimed if you are staying in a rented accommodation, i.e., paying rent. No tax benefit is available if you reside in a self-owned house, as one cannot pay rent to oneself. Soni says: “If you are a self-employed individual or an employee not qualified for HRA, you might be eligible for alternative deductions under provisions like Section 80GG if you’re paying rent and meet certain conditions.”
Source Link:
https://economictimes.indiatimes.com/wealth/tax/new-itr-utility-is-landlords-pan-card-needed-for-claiming-hra-while-filing-income-tax-return/articleshow/121743664.cms
Website Link:
https://www.taxbuddy.com/
These cash transactions may attract up to 100% penalty by Income Tax department
Here’s a breakdown of the key expectations for the upcoming budget
The Budget 2024-25 introduced significant changes to the capital gains tax regime. The Long-Term Capital Gains (LTCG) tax rate has been stan
sujit bangar of taxbuddy said Scope for revision in personal income tax levy
Align tax- saving investments with long-term financial goals
Having time allows taxpayers to take a considered decision regarding which tax regime to follow-new or old. "only in the old tax regime do you get tax deductions on investments" Says Sujit Bangar.
Source Link: https://www.business-standard.com/finance/personal-finance/align-tax-saving-investments-with-financial-goals-and-asset-allocation-124112801096_1.html
Website Link: https://www.taxbuddy.com/
How To Check Your GST Refund Status? Know Eligibility, Filing Process And Common Delays
Navigating the complexities of the Goods and Services Tax (GST) system in India is essential for every taxpayer, especially when it comes to managing refunds. Designed to simplify tax compliance and enhance ease of doing business, the GST framework offers a lifeline to businesses by enabling refund claims in specific scenarios. These refunds can play a pivotal role in maintaining healthy cash flow and operational efficiency. Whether you’re an exporter awaiting input tax credits or a business owner addressing overpayments, understanding the nuances of checking your GST refund status is key. In this article, we break down the eligibility criteria, step-by-step filing process, and common reasons for delays in GST refunds.
Sujit Bangar, founder of Tax Buddy, provided detailed insights on checking your GST refund status, including eligibility criteria, the filing process, and common causes of delays.
Eligibility for GST Refunds
Before filing for a GST refund, it’s crucial to determine if you meet the eligibility criteria. Refund claims generally arise in specific scenarios:
Excess Input Tax Credit (ITC): This occurs when the ITC surpasses your GST liability, which is common in sectors with lower output GST rates compared to input GST rates.
Exports of Goods or Services: As exports are zero-rated under the GST framework, exporters qualify for refunds on taxes paid.
Incorrect or Excess Payments: Taxpayers who mistakenly paid GST under the wrong tax head or made excess payments are eligible for refunds.
Inverted Duty Structure: Refunds may also be claimed when the tax rate on inputs is higher than the tax rate on outputs.
Provisional Assessments: Refunds can arise after the finalization of provisional tax assessments.
Understanding these conditions is the first step toward successfully claiming your refund.
GST Refund Filing Process
Filing a GST refund is a straightforward process, but attention to detail is critical to avoid delays or rejections. Here’s how you can file for a refund:
Log in to the GST Portal: Visit www.gst.gov.in and log in using your credentials.
Access the Refund Application: Navigate to the “Services" tab, select “Refunds," and click on “Application for Refund." Choose the refund type based on your claim, such as ITC accumulation, exports, or excess tax payment.
Fill Out Form GST RFD-01: Provide accurate details of your claim and attach supporting documents, such as invoices, shipping bills for exports, or payment receipts. Ensure all information is correct, as errors can cause delays.
Submit the Form: Submit the form electronically using a Digital Signature Certificate (DSC) or e-signature. Once submitted, an Acknowledgement Reference Number (ARN) is generated, which you can use to track your application.
Processing and Refund Disbursal: Tax authorities will review your application. If all details are in order, the refund will be processed and credited directly to your bank account.
Following these steps diligently can help expedite the refund process.
How to Check Your GST Refund Status?
Monitoring your refund status ensures you’re updated on its progress and can address any issues promptly. To check your GST refund status:
Log in to the GST portal with your credentials.
Go to the “Services" tab and select “Track Application Status."
Enter your ARN and click “Search."
The system will display the current status of your application, such as “Application Submitted," “Pending for Verification," “Refund Sanctioned," or “Refund Disbursed."
Common Reasons for Refund Delays
Despite the efficiency of the GST system, delays in refund processing can occur. Common reasons include:
Incomplete Documentation: Missing or incorrect documents, such as mismatched invoices or export declarations.
Discrepancies in GST Returns: Mismatches between refund claims and details in GSTR-1 or GSTR-3B filings.
Unresolved Notices: Failing to respond to GST authority queries or notices promptly.
Ensuring your application is accurate and addressing discrepancies early can help you avoid delays and ensure smooth refund processing.
Source Link: https://www.news18.com/business/tax/gst-refund-process-step-by-step-goods-and-services-tax-9150359.html
Website Link: https://www.taxbuddy.com/
KSCAA writes letter to income tax dept about taxpayers being wrongly charged late penalty for ITR filing
Multiple experts have voiced their concerns about the Centralised Processing Centre (CPC) of the income tax department making errors in processing income tax returns (ITR). The Karnataka State Chartered Accountants Association (KSCAA) has sent a representation to the CBDT in this regard. KSCAA's representation says that the CPC has erred in considering the due date for filing ITR and has imposed penalties even for those who filed ITR well within the deadline.
CPC Processing Errors, according to KSCAA
According to the representation by KSCAA (a copy of which was seen by ET Wealth Online) the errors in processing of ITRs noticed by them are as follows:
Old/ New tax regime: Numerous taxpayers have received intimations from CPC erroneously calculating their tax liability under the old tax regime, despite these taxpayers having opted for the new tax regime at time of filing their returns.
Incorrect due date considered: Certain taxpayers, specifically partners of firms liable to tax audit, have filed their income tax returns by the extended due date of November 15, 2024. However, the CPC has issued demand notices to these taxpayers, incorrectly considering the due date as July 31, 2024, and levying late filing fees of Rs 5,000 under Section 234F.
Interest under Section 234A and 234B: Many taxpayers have reported receiving demand notices where the CPC has incorrectly calculated interest under Sections 234A and 234B of the Act, resulting in inflated tax liabilities. Additionally, the absence of a detailed breakdown of the interest calculations in the intimation is creating difficulties for taxpayers to verify and address discrepancies.
Late fees for revised Return under section 234F: In certain cases, taxpayers have received demand notices imposing a late fee of Rs 5,000 under Section 234F on filing of revised returns under section 139(5) of the Act. This is erroneous, as in such cases the original return was filed within the due date specified under Section 139(1) of the Act and accordingly no late fee should be levied for filing a valid revised return.
Proportionate TDS credit allowed: In cases where TDS is deducted on non-income components like GST or other reimbursements, the credit of TDS is not allowed in total, though the assessee has suffered the deduction. This creates an unjust situation where the taxpayer has to forego the TDS credit forever.
Defective ITR Notices issued incorrectly: Classification of Income Head Based on TDS Deduction Section: Certain taxpayers have received defective notices incorrectly suggesting that income should be classified under the head "Profits and Gains from Business and Profession" rather than "Income from Other Sources" solely based on the section under which tax was deducted (such as Sections 194J or 194C of the Act), says the representation.
This treatment of income overlooks the fact that classification of an income item by the deductor cannot override/overshadow the true nature of income as received and recorded by the taxpayer. The representation adds: "Further, such an exercise requires application of mind which is often debatable and outside the domain of the adjustments stipulated under section 143(1). Therefore, such issues cannot be subject matter of automated proceedings by CPC under Section 143(1) of the Act.''
Notices for defective ITRs issued due to incorrect TDS classification in Form 26AS
KSCAA said in its representation:Many taxpayers have received notices for filing defective ITR after filing their Income Tax Return (ITR) in Form ITR-1, where Tax Deducted at Source (TDS) on interest income was initially, and erroneously, shown under Sections 194J and 194C in Form 26AS. Subsequently, form 26AS was corrected/ updated to reflect these deductions under the appropriate section for interest for interest income (Section 194A of the Act). Despite this correction, the CPC has issued defective notices, disregarding the updated and accurate classification in Form 26AS at the time of return filing.
Other ITR processing problems faced by taxpayers
ET Wealth Online has spoken with various other chartered accountants (CAs) who related the problems faced by some of the taxpayers whose ITRs the CAs had filed.. Here's what they said:
Chartered Accountant Abhishek Soni, co-founder, Tax2Win said: "We are receiving defective return notices, even though, according to the 26AS and our filed returns, everything appears to be correct. Below are some examples:
Net Income Amount as 0 in 26AS: In some cases, the 26AS reflects both positive and negative values, resulting in a net amount of 0. We have excluded this from our client's ITR. However, we have now received a defective notice from the department stating that you have ignored the income mentioned in the 26AS.
Presumptive Income Cases: We have declared income above the limit specified under the presumptive taxation sections. Despite this, we received a defective notice claiming that we have declared income lower than the prescribed 8% or 50%, as applicable.
Chartered Accountant Divya Jokhakar, partner, B. D. Jokhakar & Co: Some of our clients are partners of firms where tax audit is applicable. So, we noticed that CPC has recently processed ITR of partners of firms which are liable to tax audit, with a late filing penalty of Rs 5000. The due date of such return was November 15, 2024, extended from October 31, 2024. In another case the partners who had losses under certain income heads were barred from carrying forward (the loss) saying it's a belated return. CPC's processing despite filing in time is creating a lot of problems. The taxpayers have to apply for reprocessing and file grievance complaints.
Chartered Accountant Ashish Niraj, partner, A S N & company, says: We filed an income tax return for a taxpayer who was subject to tax audit. So, we had filled a column in the ITR with the appropriate value of an income which is what should have been done as per the law. However, CPC flagged the return and sent a notice saying why we did not declare this income in another column of the ITR instead of the column we used. It was a small dispute, so we did not argue about the logic with CPC and ultimately did whatever CPC asked and the client's ITR got processed.
Sujit Bangar, founder, TaxBuddy says: Several issues reported by KSCAA were also observed in the cases of our clients. Some of the prominent problems as per our client ITR included:
TDS Mismatch for TCS Employees: Many employees from TCS who filed their ITRs received defective notices or demand notices after processing. Initially, these were assumed to be CPC errors, but upon review, it was found that TCS itself had filed incorrect TDS details. TCS acknowledged this issue and informed employees that they had approached the tax department for rectification. Eventually, these errors were corrected, and fresh intimations were issued to the employees, resolving the discrepancies.
Presumptive Income Under Section 44AD: Several ITRs filed under the presumptive taxation scheme (Section 44AD) with income declared at 6% or 8% were flagged with defective notices due to CPC errors during processing. This caused undue panic among taxpayers. As a tax service provider, we actively communicated with our clients to explain the issue and assist in resolving it. However, individuals filing independently or through unregulated channels may have faced significant challenges.
Processing ITRs Under Incorrect Tax Regime: A few cases were observed where ITRs filed under the old tax regime were processed under the default new regime, leading to demand notices. This issue was minor but present. When taxpayers filed revised returns or rectifications, the demand notices were resolved.
Incorrect Interest Under Sections 234A and 234B: Many taxpayers received demand notices with inflated interest amounts under Sections 234A and 234B due to calculation errors by the CPC. The lack of a detailed breakdown in the intimation made it challenging for taxpayers to verify the accuracy of the calculations, further complicating the resolution process.
Carry Forward of Losses with Incorrect Filing Dates:When pre-filled JSON files were downloaded for taxpayers, errors were noted in the carry-forward loss schedules. The filing dates for previous assessment years were incorrectly mentioned, resulting in the non-adjustment of eligible losses during processing. This led to inaccurate demands being raised.
Common ITR processing issue faced by some taxpayers- demand notice for late ITR filing
Both KSCAA and Jokhakar say that their clients had to pay late fees despite filing the ITR on time. "In certain cases, taxpayers have received demand notices imposing a late fee of Rs 5,000 under Section 234F of the Act on filing of revised returns under section 139(5) of the Act. This is erroneous, as in such cases the original return was filed within the due date specified under Section 139(1) of the Act," said KSCAA in its representation.
Jokhakar said: "Some clients of mine who faced this, even got a section 245 notice for adjusting this Rs 5,000 late filing fee with their tax refund due. This happened despite them filing the ITR before the deadline."
"Our representation to the Central Board of Direct Taxes highlights critical systemic issues in income tax return processing that are causing undue hardship to taxpayers and professionals. We are seeking urgent intervention to address defective notices, incorrect tax regime calculations, and processing errors at the Centralized Processing Centre, which are creating unnecessary compliance burdens for professionals and anxieties for taxpayers. Our goal is to work constructively with the tax authorities to ensure a fair, efficient, and taxpayer-friendly system," says Chartered Accountant Vijaykumar M Patel, President, Karnataka State Chartered Accountants Association (KSCAA).
What CPC needs to do, as per KSCAA's representation
In its representation KSCAA suggested the following steps be taken by CPC to solve the above issues:
Review and rectify defective ITR notice issuance
Ensure the classification of income is based on its true nature rather than solely going by the section under which TDS has been deduced by independent third party, to prevent undue misclassification for assessees.
Ensure that updated Form 26AS is considered for processing the income tax return filed by assessee.
TDS credit should be allowed in full especially if it is reflected in Form 26AS. The allowability of the same may be taken up during assessments, etc and not restricted while processing intimation.
Implement enhanced validation checks in CPC processing
KSCAA requested the implementation of stronger validation protocols to prevent processing errors in tax regime selection, due date recognition, and interest calculations. This would include:
Ensuring taxpayers' chosen tax regimes are respected in demand notices, avoiding unnecessary disputes.
Correctly identifying extended due dates in cases of tax audit, particularly for partners in audited firms, to prevent unwarranted demand notices.
Providing detailed breakdowns of interest under Sections 234A and 234B in demand notices, allowing taxpayers to verify calculations and address any discrepancies effectively.
Request that late fees under Section 234F not be imposed on returns filed within the due date under Section 139(1), even if subsequently revised.
Source Link: https://economictimes.indiatimes.com/wealth/tax/kscaa-writes-letter-to-tax-dept-about-taxpayers-being-wrongly-charged-late-penalty-for-itr-filing/articleshow/115886305.cms
Website Link: https://www.taxbuddy.com/
How to check your GST refund status and know common reasons for delays
Checking the status of Goods and Services Tax (GST) refund is crucial for businesses and individuals who are eligible such money due to various reasons. Understanding the eligibility criteria and common delays can streamline this experience.
When can a GST refund be claimed?
Refunds can be claimed if there is an unused balance in the electronic cash ledger due to overpayment.
GST paid on export of goods/services.
That paid on the supply of goods/services to a Special Economic Zone.
Refunds can be claimed on inputs used for the supply of nil-rated or exempt goods and services.
Any refund resulting from court orders, decrees, or judgments is eligible.
Diplomats, embassies, and certain international organisations (e.g., the United Nations) can claim refunds on the GST paid.
Refunds can be claimed if GST was paid in excess due to errors during the filing of returns.
"Once your application is submitted, the tax authorities will review your claim. If everything is in order, the refund amount will be processed and credited directly to your bank account. The processing time may vary but following the correct procedures can significantly reduce delays," said Sujit Sudhakar Bangar Founder at TaxBuddy.com
How to check your GST refund status
Log in to the GST portal.
Go to the 'track application status' option under the 'services' tab.
Enter the ARN generated during the refund application process and click on 'search.'
The system will display the current status of your refund application.
The status could range from 'application submitted' and 'pending for verification' to 'refund sanctioned' or 'refund disbursed.'
If any issues arise, you can address them promptly by contacting the tax authorities or rectifying discrepancies in your application.
Common reasons for refund delays
One major cause of delay is incomplete documentation. Missing or incorrect information, such as mismatched invoices or inadequate export declarations, can slow down the process.
Another common issue is discrepancies between the details in your GST returns (e.g., GSTR-1, GSTR-3B) and the refund claim.
Additionally, failure to respond to queries or notices issued by the GST authorities can lead to delays or even rejection of the refund application.
Source Link: https://www.business-standard.com/finance/personal-finance/how-to-check-your-gst-refund-status-and-know-common-reasons-for-delays-124120600800_1.html
Website Link: https://www.taxbuddy.com/