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Friday, December 6, 2024

The Thirteenth Pension At ITR

With the Income Tax filing deadline looming on July 31, there is no chance of extension as government provides a four-month window commencing April 1 to end on July 31 to taxpayers for consolidating their income details and filing their ITR properly, failing which they have to face consequences such as to pay penalty of Rs 1000 for total income up to Rs 5 Lakh. The maximum penalty levied will be Rs 5,000. But in case, the ITR is filed after December 31, the penalty amount can go up to Rs 10,000.

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When it comes to filing the Income Tax Returns (ITR), Aaykar Bhawan sees more footfalls during July in the special tax counters and help desks opened by the income tax officials. Citizens continue to face the issue of linking PAN and Aadhaar and the most worrisome part is the nitty-gritty of tax rules. Failure to this will result in the PAN becoming inoperative and liable to all the consequences under the Income-Tax Act 1961. One should also be aware of all the deductions and exemptions available to assessee but tax filers end up making mistakes in their returns, leading to notices from the tax departments.

The salaried individual especially the pensioners often get displeased with Tax Deducted at Source (TDS). Why senior citizens need to file ITR though banks deduct TDS from their pension. This year for tax return, a significant step have been taken by Income Tax Department, where income tax payment facility has been migrated from OLTAS to ‘e-pay tax’ facility on the e-filing portal. As a result Challan 280 is no longer necessary or applicable. It’s another great relief to bank/Post Office account holders about the interest accrued on TDR/STDR/Savings Bank/FCNR/Recurring A/C shown on one single page instead of printing out the piles of quarterly Form 16A and bank statement. Of course, the banks’ concern about this is truly praiseworthy.

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While submitting ITR, assesse find it difficult through the online steps thereby take help from Tax consultants. The beauty of filing ITR is that it won’t require all those Form 16 (salary income), Form 16A (other income – interest) or any income statement such as dividend from shares as TDS and TCS are all reflected at 26 AS import. The total income from salary, house property, other sources and provisions/ deduction are clearly reflected in the computation report as they are linked with individual PAN. However TDS deducted at 10% only from other income types, when assesse falls different tax slabs at different tax rates thus interest charged penalties arise during ITR.

Only the deductions (Chapter VI-A) parts are to be entered to get exemption such as u/s 80Cs, 80Ds, 80 TTA (interest from SB Account) etc. It’s always advisable to pay advance tax quarterly instead of self-assessment tax during ITR. Penalty interest charged u/s 234 A/B/C is imposed on taxpayers who fail to pay advance tax. The interest will be charged u/s 234A at 1 per cent per month. However senior citizens are exempted from the penalty. Tax calculation on normal income after deducting exemption limit is done on different income tax slabs @5%, @20% and @30% under old tax regime.

With the Income Tax filing deadline looming on July 31, there is no chance of extension as government provides a four-month window commencing April 1 to end on July 31 to taxpayers for consolidating their income details and filing their ITR properly, failing which they have to face consequences such as to pay penalty of Rs 1000 for total income up to Rs 5 Lakh. The maximum penalty levied will be Rs 5,000. But in case, the ITR is filed after December 31, the penalty amount can go up to Rs 10,000.

While observing the details of Taxpayer Information Summary (TIS) such as salary, dividend, interest from savings bank / deposits, purchase of vehicles / propertyetc. my friend Prabir, who’s a former air warrior and now working as IT Officer at Aayakar Bhawan Guwahati, was perplexed by the thirteenth entry of his monthly pensionin a year. Is the curse of the number 13? There are supposed to be twelve pension entriesin a financial year. In the first instance, I also found it wrong at bank pension software. But it was all about OROP Arrear showing thirteenth entry as ‘by pension’. The message on WhatsApp reminded him that 13th looked similar monthly credit besides there are other entries too for DA arrears from time to time.

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As the deadline for ITR filing is inching closer, don’t keep putting off your decision until the last minute. Should you need help, please don’t hesitate to visit ITR Mela or visit tax consultants. No matter what your source of income is, let’s file your ITR under subsection 8A of section 139(1) electronically on or before the specified due date and get verified by generating through Aadhaar OTP mode. Be patient! The system will surely generate the Barcode/QR Code as acknowledgement soon. Happy filing day!

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The Hills Times
The Hills Timeshttps://www.thehillstimes.in/
Welcome to The Hills Times, your trusted source for daily news and updates in English from the heart of Assam, India. Since our establishment in 2000, we've been dedicated to providing timely and accurate information to our readers in Diphu and Guwahati. As the first English newspaper in the then undemarcated Karbi Anglong district, we've forged a strong connection with diverse communities and age groups, earning a reputation for being a reliable source of news and insights. In addition to our print edition, we keep pace with the digital age through our website, https://thehillstimes.in, where we diligently update our readers with the latest happenings day by day. Whether it's local events, regional developments, or global news, The Hills Times strives to keep you informed with dedication and integrity. Join us in staying ahead of the curve and exploring the world through our lens.
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