Summary of Direct and Indirect Tax Proposals: Budget 2024-25
Summary of the direct and indirect tax proposals made in the Budget 2024-25 (Finance Bill 2024) presented by Smt Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs:
Highlights of the Direct Tax Proposals of Finance Bill, 2024
No changes in Tax Rates
No changes have been proposed to the existing rates of direct and indirect taxes. The existing rates of income tax, gst, import duties, etc. have been retained.
To provide continuity, some tax benefits and exemptions have been extended by 1 year until 31st March 2025. These include:
Tax benefits for startups;
Tax exemptions on certain income for International Financial Services Centers (IFSCs); and
Tax exemptions on investments made by sovereign wealth funds and pension funds.
The Interim Budget 2024 maintains the status quo on tax rates and extends certain tax breaks by a year to provide stability and continuity in taxation. No new changes or reforms have been introduced to the tax structure or rates.
Withdrawal of Outstanding direct tax demands
The FM has announced to withdraw the outstanding demands of income tax. Here is a summary of the key points regarding the withdrawal of outstanding direct tax demands announced in the Interim Budget 2024:
i) In line with the government’s vision to improve ease of living and doing business, outstanding petty direct tax demands up to Rs 25,000 dating back to 1962 will be withdrawn for the period up to FY 2009.
ii) Similarly, outstanding demands up to Rs 10,000 will be withdrawn for the FY 2010-11 to 2014-15.
iii) These are non-verified, non-reconciled or disputed demands that continue to remain on the books, causing anxiety for taxpayers.
Withdrawing these demands will help provide relief to honest taxpayers and enable refunds for subsequent years.
This is expected to benefit about 1 crore taxpayers who have such outstanding demands.
The move aims to improve tax payer services and reduce harassment of taxpayers over small disputed sums dating back decades.
In short, the Interim Budget 2024 has announced the withdrawal of old, petty direct tax demands up to Rs 25,000 till FY 2009-10 and Rs 10,000 between FY 2010-11 to 2014-15 to provide relief to taxpayers.
Highlights of the Indirect Tax Proposals of Finance Bill 2024
The FM has proposed in Budget 2024 to retain the same tax rates in respect of GST, import duty, etc.indirect taxes as are applicable at present, i.e. existing GST and import duty rates shall continue in FY 2024-25 as well.
CBDT has released the new ITR forms – ITR-1 and ITR-4 – for FY 2023-24 early this year. These forms are applicable for filing income tax return before July 31, 2024, unless extended.
New ITR forms AY 2024-25: Taxpayers will now be required to provide information regarding cash receipts and all their bank accounts within the country according to the latest Income Tax Return (ITR) Forms for the Assessment Year 2024-25, as notified by the Central Board of Direct Taxes.
CBDT has released the new ITR forms – ITR-1 and ITR-4 for FY 2023-24 early this year.
These forms are applicable for filing income tax return for AY 2024-24 with the last date of July 31, 2024, unless extended.
One noteworthy feature of the new ITR forms is that The Finance Act, 2023 has modified Section 115 BAC, establishing it as primary tax regime for individuals, HUFs, AOPs, BOIs, and AJPs. Under this amendment, if an assessee prefers not to adhere to the new tax regime, they must expressly opt out and select the Old Regime for their taxation.
The ITR 1, also known as Sahaj, can be filed by individuals with an income up to Rs.50 lakhs. This includes income from salary, one house property, other sources such as interest, dividends, etc and agricultural income up to Rs.5,000.
Taxpayers will need to provide details of all their bank accounts operational in the previous year along with the type of account.
The updated income tax return forms also include a special section for deductions for Agniveers, the youth serving in the armed forces under the Agnipath scheme, as per Section 80CCH.
Individuals, Hindu undivided families (HUFs), and firms, excluding limited liability partnerships (LLPs), with a total income up to Rs.50 lakhs and income from business and profession, can file ITR 4, also known as Sugam.
In the previous year, the forms were notified in February. Previously, there was a separate column for cryptocurrency. However, in the new ITR, a new disclosure has been added to specify “receipts in cash’ in the New ITR 4 Form.
Here are some cases in which the assessee cannot file ITR 1 –
Any individual having an income of more than INR 50 lakhs.
An individual holding a directorial position in a company or having unlisted equity shares during the financial year.
Non-residents and Resident but not ordinarily resident (RNOR).
Individuals with income from more than one house property
Income from lottery, horse races, and legal gambling.
Short-term and long-term capital gains
Agricultural income is more than 5000.
Income from business and profession
Any resident having assets outside India
Individuals claiming Foreign Tax Credit under sections 90, 90A and 91.
Deferred Income Tax on ESOP.
Here are some cases in which the assessee cannot file ITR 4 –
If the turnover of the business exceeds Rs. 2 crores (3 crores for FY- 2023-24), the taxpayer will have to file ITR-3
If your total income is more than INR 50 lakhs
Have income from more than one house property and own a foreign asset
The income tax department has introduced a new functionality on its website- ‘Discard ITR’.
This new feature will allow taxpayers to discard their previously filed but unverified Income Tax Returns (ITR).
Starting from Assessment Year 2023-24, this new ‘Discard ITR’ functionality, provides users with the ability to discard original, belated, or revised ITR, expanding the scope for revision beyond just errors or omissions.
– Opting to discard the ITR is equivalent to non-filing of the return.
– Following the discard, a new ITR can be submitted.
However, if the fresh ITR is filed after the due date, it will incur late fees and other associated consequences.
– Once the discard option is exercised, it cannot be reversed.
Hence, use this option cautiously.
– The discard feature is available until the ITR filing deadline, i.e., until December 31 following the end of the financial year.
Hence, timely action is advised.
The tax department has released FAQs to address common queries on Discard ITR Option. Here is all you need to know about the new functionality on the income tax website that allows taxpayers to discard their unverified Income Tax Returns (ITR).
1)Taxpayers can avail of the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it.
2)However, if the “ITR filed u/s 139(1)” is discarded and the subsequent return is filed after the due date u/s 139(1), it would attract implications of belated return like 234F, etc.,
3) To access the ‘Discard’ option, users can follow the specified pathway on the income tax website. On the income tax portal, users can find the Discard option www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard”
4) Users can avail of this option only if the ITR status is “unverified” / “Pending for verification”.
5) Users can utilize the discard option repeatedly as long as the ITR status remains unverified or pending verification.
6) The feature is available for AY24 onwards. Once an ITR is discarded.
7) This option will be available only till the time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now).
8) Once an ITR is discarded, it cannot be reinstated, making the action irreversible and essentially disclaiming the filing of the ITR.
Meanwhile, a record number of over 7.85 crore Income Tax Returns were filed till October 31 this year, said the Central Board of Direct Taxes (CBDT). According to the official release, October 31 was the due date for filing ITRs (other than ITR-7) for taxpayers not having any international or specified domestic transactions.
Filing an Updated Income Tax Return (ITR-U) under section 139(8A)
ITR-U refers to the Updated Return form used for filing an amended or revised income tax return in India. It is a provision provided by the Income Tax Department to enable taxpayers to correct any errors, rectify omissions, or make changes to their original tax return filing. The “U” in ITR-U stands for “Updated.”
ITR-U is primarily used when individuals or entities realize that they have made mistakes in reporting their income, claiming deductions, providing incorrect details, or omitting important information in their initial tax return. By filing an updated return using ITR-U, taxpayers can rectify these errors and ensure that their tax records reflect their financial situation accurately.
The filing of ITR-U falls under Section 139(8A) of the Income Tax Act, which allows taxpayers to revise their returns within a specific time-frame. It is important to note that ITR-U is different from the regular income tax return forms (such as ITR-1, ITR-2, etc.) used for filing the original tax return.
Filing ITR-U involves providing accurate details of the original return, specifying the changes or amendments being made, and submitting the revised return electronically through the Income Tax Department’s official website or other authorized platforms. It is crucial to ensure that the updated return is filed within the prescribed deadline to avoid penalties and legal consequences.
Who can file ITR-U?
Return previously not filed
In the case of a return previously not filed, taxpayers can file an Updated Return to report their income and fulfill their tax obligations.
Income not reported correctly
In situations where income was not reported correctly, taxpayers can file an Updated Return to rectify the error and provide accurate income details.
Wrong heads of income chosen
When wrong heads of income are chosen, taxpayers can use ITR-U to correct the classification and allocate income under the appropriate heads.
Reduction of carried forward loss
In situations involving the reduction of carried forward loss, taxpayers can file an Updated Return to adjust and reduce the carried forward loss accordingly.
Reduction of unabsorbed depreciation
When there is a need for the reduction of unabsorbed depreciation, taxpayers can file an Updated Return to adjust and reduce the unabsorbed depreciation.
Reduction of tax credit under Sections 115JB/115JC
In situations involving the reduction of tax credit under Sections 115JB/115JC, taxpayers can file an Updated Return to reduce the tax credit accordingly.
Wrong rate of tax
When an incorrect rate of tax has been applied, taxpayers can use ITR-U to correct the rate and ensure accurate calculation of their tax liability.
Following conditions are to be satisfied to file return u/s 139(8A):
– It should not result in a return of loss. – It should not reduce Income Tax Liability as compared to last filed valid return. – It should not result in increase of Refund. – Search should not have been initiated under section 132. – Requisition should not have been made under section 132A. – Survey should not have been conducted section 133A or. – Any proceeding of assessment, reassessment, re-computation or revision should not be pending or completed for that relevant year.
Who Cannot File Form ITR-U?
Return of loss
If the updated return results in a return of loss, it cannot be filed using Form ITR-U. The form is designed for rectifying errors or making changes to the original return, not for reporting a loss.
Reduction of income tax liability
If filing an updated return reduces the income tax liability that was declared in the earlier filed return, Form ITR-U cannot be used. The purpose of the form is not to revise the tax liability to a lower amount.
Increase in refund
If filing an updated return leads to an increase in the refund amount compared to the return filed earlier, Form ITR-U is not applicable. The form is not intended for increasing the refund amount.
Search or requisition
If a search has been initiated under section 132 or books of accounts or any other documents have been requisitioned under section 132A, filing Form ITR-U is not allowed.
Survey conducted
If a survey has been conducted under section 133A, Form ITR-U cannot be used for filing an updated return.
Pending or completed proceedings
If any assessment, reassessment, re-computation, or revision proceedings are pending or have been completed for the relevant assessment year, Form ITR-U cannot be filed.
Information under various acts
Suppose the Assessing Officer has information against the person under the Prevention of Money Laundering Act, Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act. In that case, Benami Property Transactions Act, or Smugglers and Foreign Exchange Manipulators Act, and the same has been communicated to the assessee, Form ITR-U is ineligible.
Information under DTAA agreements
If information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A, and the same has been communicated to the taxpayer before the date of furnishing the return, Form ITR-U cannot be used.
Other notified persons
There may be specific categories of individuals or entities who are notified as ineligible to file Form ITR-U as per notifications issued by the tax authorities.
With 2.75 crore refunds already processed, the I-T department has asked taxpayers to respond to outstanding tax demands promptly.
The Income Tax Department has urged taxpayers to address any outstanding tax demands for previous years in order to facilitate faster clearance of refunds for the 2022-23 fiscal year. This is a taxpayer-friendly measure, as it gives taxpayers an opportunity to clarify the status of any outstanding demands and ensure that they receive their refunds as quickly as possible.
The Income Tax Department on September 23, 2023, called upon taxpayers to promptly respond to intimation of outstanding tax demands, adding that it will help in faster processing of income tax returns (ITR) and quicker issuance of refunds.
For the Assessment Year 2023-24, a total of 7.09 crore returns have been filed. Of these, 6.96 crore ITRs have been verified, 6.46 crore returns have been processed, and 2.75 crore refund returns have already been issued as per the latest data from the I-T department.
The Income Tax Department is making every effort to complete the processing of ITRs and issuance of refunds expeditiously, it said in a social media post on X. However, a significant hurdle in achieving this goal is that there are previous outstanding tax demands.
What are pending tax demands?
After you file your returns, the Income Tax Department inspects the tax declarations and if there are any mismatches with your actual tax liability, it issues an “outstanding tax demand” notice.
Section 245(1) of the Income-tax Act, 1961, necessitates offering taxpayers an opportunity to provide their input before adjusting the refund against any existing demand. Taxpayers are required to agree, disagree, or clarify the status of the demand.
Taxpayers who have outstanding demands from previous years will receive notifications from the department. So it has requested the taxpayers to respond to such intimations to enable “cleaning up/reconciliation” of pending demands and facilitate timely issue of refunds. It will not only aid in resolving pending demands but also expedite the timely issuance of refunds.
How to Respond to Outstanding Tax Demands?
In its official website, the Income Tax Department shows how one can respond to outstanding demands. Here are the steps to follow:
To begin the process, taxpayers should visit the official Income Tax Department’s e-filing portal at https://www.incometax.gov.in/iec/foportal/.
Under the ‘e-File’ menu, taxpayers should locate and click on the ‘Response to Outstanding Demand’ option.
In the subsequent screen, taxpayers will find a list of response options. They can select from the following choices:
a) Demand is correct
b) Demand is partially correct
c) Disagree with demand
d) Demand is not correct but agree for adjustment
Submit Your Response: Depending on the chosen response, taxpayers should follow the instructions provided on the portal. If the taxpayer selects ‘Demand is correct,’ they should click on the ‘Submit’ button to confirm their choice and complete the response submission process.
However, if the ‘Demand is correct’ option is confirmed, taxpayers will not have the option to disagree with the demand later and any refund owed will be adjusted against the outstanding demand. Taxpayers also have the option to pay the demand directly by clicking the link under the ‘Pay Tax’ option.
The government extended the date for filing income tax returns for companies by one month to November 30.
Income Tax Department has extended the deadline for ITR filing for certain categories of taxpayers. This has brought great relief to the taxpayers/institutions falling in these categories and they have also been saved from paying heavy penalties due to delay.
According to the Income Tax Department, till September 5, about 6.98 crore individual taxpayers have filed ITR.
The Income Tax Department has extended the deadline for filing income tax returns for charitable trusts, religious institutions and professional bodies by one month to November 30. The Income Tax Department said in a statement that the due date for filing income tax return in Form ITR-7 for the assessment year 2023-24, which is 31 October 2023, has been extended to 30 November 2023.
Also, the due date for submission of audit report for 2022-23 by any fund, trust, institution or any university or educational institution or medical institution in Form 10B/10BB has been extended by one month to 31 October 2023. Earlier the last date for submission of audit report was 30 September.
ITR-7 is filed by institutions involved in charitable and religious activities, research institutes, professional bodies, political parties and electoral trusts also file tax returns through ITR-7.
The Finance Ministry said in a statement on Monday, the deadline for filing income tax return in Form ITR-7 for the assessment year 2023-24 has been extended from October 31, 2023 to November 30, 2023.
In the current financial year, till mid-September, net direct tax collection has increased by 23.51% to Rs 8.65 lakh crore. The Finance Ministry said that there has been a huge increase in direct tax collection due to more advance tax payment by the companies. During this period, advance tax payment has increased by 21%.
According to the data, net tax collection has been 47.45% of the budget estimate of Rs 18.23 lakh crore for the current financial year. In the last financial year 2022-23, direct tax collection was Rs 16.61 lakh crore.
AIS shows both reported value and the value after considering taxpayer feedback under each section (i.e. TDS, SFT, Other information).
The Income Tax Department has announced the roll-out of a new statement namely Annual Information Statement (AIS) which would provide you with almost all details about your financial transactions during the year. So far, the Income Tax Department has been issuing Form 26AS to provide information related to taxable income and tax deducted at source (TDS), which will now be replaced with the Annual Information Statement (AIS). The new AIS statement will provide comprehensive information of the taxpayer and will be significantly useful while preparing the tax return. The information will be provided in AIS after removing duplicate information and taxpayers can download such information in PDF, JSON, CSV formats.
A taxpayer can submit online feedback if the information is erroneous or refers to another person/year, or is duplicate. The list of Top 50 Transactions to be reported in the New Annual Information Statement are mentioned below.
1.Salary
Employer submits detailed breakup of salary, perquisites, profits in lieu of salary etc paid to the employee in Annexure II of the TDS statement (24Q) of the last quarter. This information is also provided by the employer to the employee (taxpayer) in Part B (Annexure) of Form 16. AIS displays all the financial transactions such as, salary income, dividend income, interest income from saving/fixed deposits, sale and purchase of securities, etc. With the help of all such financial information, it would be easy for a taxpayer to report the correct information in the income tax return
Rent Received
Tenants responsible for paying rent are liable to deduct tax at source on payment of rent. Deductor reports details of amount paid/credited, date of payment, details of Tax deduction made etc. in Form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Tenant (Individual/HUF) paying a rent of more than 50,000 is liable to deduct tax while making payment to the landlord. Tenant reports details of rent paid amount paid/credited, property details, date of payment and tax deduction details etc. pertaining to rent paid in Form26QC.
Dividends
Dividend paid/declared by all companies (reporting entity) is reported under Statement of Financial Transactions (SFT). Company paying/distributing dividend is liable to deduct TDS from the amount paid subject to the threshold applicable in the act and report through form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest from savings bank
Interest paid/credited/accrued on saving account is reported under Statement of Financial Transactions (SFT).
Interest from deposit
Bank/deductor at the time paying/crediting interest on deposits is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest from others
Interest paid/credited/accrued on others (other than savings account, term deposit, recurring deposit) is reported under Statement of Financial Transactions (SFT). Bank/deductor at the time paying/crediting other interest (interest on securities) is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A
Interest from income tax refund
Interest received on Income Tax Refund in the financial year is liable to be taxed as Income from other sources.
Rent on plant & machinery
Tenant paying rent is liable to deduct tax at applicable rate as per the Act from rent paid. Details of rent on Plant & Machinery is reported by the deductor in TDS form 26Q. Tenant furnishes the details of rent paid on quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Winnings from lottery or crossword puzzle
Payer is liable to deduct tax at applicable rate as per act from winnings from lottery or crossword puzzle etc. Information about winnings is reported by payer in TDS form 26Q. Information is reported on quarterly basis. Income is taxable at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Winnings from horse race
Payer is liable to deduct tax at applicable rate as per act from winnings from Horse race. Information about winnings is reported by payer in TDS form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Receipt of accumulated balance of PF from employer u/s 111
Employer/recognised provided fund reports information about accumulated balance due to an employee in form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest from infrastructure debt fund
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest from specified company by a non-resident u/s 115A(1)(a)(iiaa)
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest on bonds and government securities
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income in respect of units of non-resident u/s 115A(1)(a)(iiab)
Information about income in respect of units of Non Resident is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b)
Information about income and long-term capital gain from units payable to an off shore fund is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income and long-term capital gain from foreign currency bonds or shares of Indian companies u/s 115AC
Information about income and long-term capital gain from foreign currency bonds or shares of Indian companies is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income of foreign institutional investors from securities u/s 115AD(1)(i)
Information about income of foreign institutional investors from securities is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Insurance commission
Information about insurance commission received is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Receipts from life insurance policy
Receipts from life insurance policy are exempt under section 10(10D) subject to conditions specified therein. If such conditions are not met, the receipts become taxable and tax is also deducted u/s 194DA. The information is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Withdrawal of deposits under national savings scheme
Withdrawals from NSS are taxable. Tax is also deducted on such withdrawals and reported in Form 26Q by the payer on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Receipt of commission etc. on sale of lottery tickets
Commission on lottery business is subject to tax deduction under section 194G. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
Income from investment in securitization trust
Income from investment made in securitization trust is subject to tax deduction. The payer reports such information in Form 27Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income on account of repurchase of units by MF/UTI
Receipt of income on account of repurchase of units by MF/UTI is subject to tax deduction under section 194F. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest or dividend or other sums payable to government
Income from interest or dividend or other sums payable is not subject to tax deduction. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
Payment to non-resident sportsmen or sports association u/s 115BBA
Information pertaining to amount paid to non-resident sportsmen or sports association is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Sale of land or building
Sales consideration of immovable property transferred is reported under Statement of Financial Transactions (SFT). The information will be shown in AIS of all sellers to enable submission of feedback. Sale of immovable property is also reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person. Information related to receipts under specified agreement is reported by person making payment for specified agreement entered into. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Receipts from transfer of immovable property
Information related to receipts from transfer of immovable property is reported by buyer of property in Form 26QB. This information is provided by the deductor to the deductee (taxpayer) in Form 16B.
Sale of vehicle
Sale of motor vehicle is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Sale of securities and units of mutual fund
In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return.
Off market debit transactions
In the SFT reporting of depository transactions, the depository reports details of off market debit transactions. The value of transaction is computed on the basis of end of day price of the security. In case, the consideration is available, the same is also shown.
Off market credit transactions
In the SFT reporting of depository transactions, the depository reports details of off market credit transactions. The value of transaction is computed on the basis of end of day price
Business receipts
Information pertaining to amount paid to contractor is reported by contractee in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information pertaining to amount paid to the service provider is reported by recipient of services in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
Business expenses
Information pertaining to purchase of alcoholic liquor is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.
Rent payments
Information is reported by person making payment in form 26QC. This information is provided by the deductor to the taxpayer in Form 16C
Miscellaneous payments
Information is reported by person making payment in form 26QD. This information is provided by the deductor to the taxpayer in Form 16D. Purchase of bank drafts or pay orders may be reported in Form 61 if PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person
Cash deposits
Information pertaining to cash deposits in an account other than current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to cash deposits in current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback.
Cash withdrawals
Information pertaining to Cash withdrawals from current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Sometimes, cash withdrawals from accounts other than current account are reported by the Reporting Entity in SFT-004. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to Cash withdrawals is reported by reporting entity through TDS statement 26Q. This information is provided by the deductor to the taxpayer in Form 16A.
Cash payments
Information pertaining to Cash payments for goods and services is reported by reporting entity in form 61A. Information pertaining to Purchase of bank drafts or pay orders or banker’s cheque in cash is reported by reporting entity in form 61A. Information pertaining to Purchase of prepaid instruments in cash is reported by reporting entity in form 61A.
Outward foreign remittance/purchase of foreign currency
Information of outward foreign remittance is reported by authorised dealer in form 15CC. Information about Remittance under LRS for educational loan taken from financial institutions mentioned in section 80E (Third proviso to Section 206C(1G)) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.Information about Remittance under LRS for purpose other than for purchase of overseas tour package or for educational loan taken from financial institution (Section 206C(1G(a))) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.
Receipt of foreign remittance
Information relating to payment of royalty or fees for technical services etc., paid to non- residents is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information is reported by authorised dealer in form 15CC for foreign remittances made by remitter PAN. Information of receipt of foreign remittance by a remittee is reported by authorised dealer in form 15CC.
Foreign travel
Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment in connection with travel to any foreign country may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Purchase of immovable property
Information relating to immovable property is reported by the Property Registrar through SFT. The information will be shown in AIS of all buyers to enable submission of feedback. Buyer at the time of making payment towards purchase of property is liable to deduct tax from the amount paid to the seller subject to the threshold applicable. This information is reported in form 26QB. Seller of property reports the details of property buyer in schedule CG of ITR. Payment for purchase of immovable property may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Purchase of vehicle
Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment for purchase of motor vehicle may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Purchase of time deposits
Information relating to Purchase of Time deposits is reported by reporting entity (such as the bank) in the Statement of Financial Transaction (SFT). Information pertaining to investment in Time deposit is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Purchase of securities and units of mutual funds
Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Purchase of shares (including share application money). Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Information is reported by reporting entity (such as mutual fund companies) in the Statement of Financial Transaction (SFT).
Credit/Debit card
Information pertaining to application for issuance of credit/debit card is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Balance in account
Details of bank account other than saving and time deposits opened during the year , as reported in Form 61. Bank account with balance exceeding 50,000 at the closing of Financial year, as reported in Form 61.
Income distributed by business trust
Information relating to income from units of a business trust is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate.
Income distributed by investment fund
This information is reported by the deductor in Form 26Q on a quarterly basis
The Income Tax Department tracks more comprehensive information about assessees & this facilitates financial transactions from many income sources and expenditures to be captured, in more detail. This needs to be reconciled while filing ITR and proper records to be maintained by all for above list of items, as these are scrutinized by tax department.
