SGT Advisory

*Key Points to Remember for Tax Regime from AY 2024-25 Onwards* 1. Default Tax Regime: - The default tax regime is the New Tax Regime under Section 115BAC. If you wish to opt for the Old Tax Regime, you must specifically select it in the ITR form. 2. ITR 1 and ITR 2 Filers: - You can choose either the Old or New Regime while filing your ITR. - No need to file Form 10IEA for opting into the Old Tax Regime for AY 24-25 or for opting out of it from AY 25-26 onwards. 3. ITR 3 and ITR 4 Filers: - To select the Old Tax Regime for AY 24-25, you must file Form 10IEA. - If you wish to opt out of the Old Tax Regime from AY 25-26 onwards, you must file Form 10IEA again. After opting out, you cannot switch back to the Old Tax Regime. 4. Deadline for Opting In/Out: - You must exercise the option to opt in or out of the Old Tax Regime on or before the due date under Section 139(1). 5. Tax Rebates: - Old Regime: Tax rebate under Section 87A is ₹12,500, subject to a total income of ₹5 lakh. - New Regime: Tax rebate under Section 87A is ₹25,000, subject to a total income of ₹7 lakh. 6. Choosing the Right Regime: - If you have deductions only under Section 80C or no deductions at all, the New Regime is generally more beneficial. - If you claim deductions for home loan interest, Section 80C, and Section 80D, the Old Regime is likely more advantageous. 7. Impact of Previous Selections: - Previous selections (up to AY 23-24) have no impact on regime selection for AY 24-25. AY 24-25 is the first year for filing Form 10IEA for opting into the Old Tax Regime for ITR 3 or ITR 4 filers. 8. Comparison and Calculations: - Use a reliable calculator to compare tax liabilities under the Old vs. New Regimes. This can help determine potential tax savings with a specific regime.

Here are six scenarios where individual transactions could attract scrutiny from the Income Tax Department: 1. High Cash Deposits and Withdrawals Cash deposits exceeding Rs 10 lakh for savings accounts and Rs 50 lakh for current accounts, along with significant withdrawals, may prompt inquiries regarding the origin and purpose of the funds. 2. Real Estate Transactions Real estate deals involving amounts over Rs 30 lakh may draw the tax department’s attention, necessitating detailed information about the transaction and involved parties. 3. Investments in Securities Investments exceeding Rs 10 lakh in stocks, mutual funds, or bonds could invite scrutiny if the source of funds appears inconsistent with reported income. 4. Credit Card Transactions While the I-T department doesn’t actively monitor individual credit card transactions, cash payments exceeding Rs 1 lakh or substantial debt settlements surpassing Rs 10 lakh made in cash may undergo scrutiny and investigation. 5. Income Declaration Mismatch Discrepancies between declared income and bank data may trigger notifications, underscoring the importance of maintaining accurate financial records to avoid discrepancies. 6. Foreign Exchange Transactions Purchases of foreign exchange, including travelers’ checks and forex cards, using debit or credit cards, aggregating to Rs 10 lakh, also require reporting. It is crucial to ensure transparency in significant transactions and maintain clear documentation of fund sources to avoid inquiries into unaccounted cash inflows, thereby fostering compliance with tax regulations.

Let's celebrate the life and achievements of Dr. Bhimrao Ambedkar, a visionary leader and social reformer by advocating for the rights and dignity of every individual, regardless of caste, creed, or gender. Happy Ambedkar Jayanti!  #ambedkar #ambedkarjayanti #jaibheem #samvidhan

Good health is more than just a body, it's a state of mind and spirit. Prioritise your health. #TeamSGT #WorldHealthDay

In a recent ruling by the Kerala High Court, a case involving M Trans Corporation sheds light on an inadvertent error in claiming tax refunds under the Goods and Services Tax (GST) regime. Despite the petitioner's contention of a genuine mistake, the court's decision underscores the critical importance of adhering to statutory timelines within GST regulations. This article delves into the specifics of the case, including its background, relevant case details such as the case number and assessment year, and the court's judgment. Case Details: Case Name: M Trans Corporation Vs State Tax Officer Case Number: WP(C) No. 7731 of 2024 Assessment Year: 2017-18 Background: M Trans Corporation, a registered dealer under both the CGST Act and Kerala SGST Act, filed returns for the fiscal year 2017-18. However, their compliance with tax regulations came under scrutiny when show cause notices were issued, alleging an over-claiming of input tax credit as SGST and CGST. Detailing the Issue: The heart of the matter lies in the corporation's inadvertent claim of Integrated Goods and Services Tax (IGST) refunds instead of the appropriate Central GST (CGST) or State GST (SGST) refunds. This oversight resulted in the disallowance of the claimed input tax credit, accompanied by the imposition of tax, interest, and penalties. Petitioner's Argument: The petitioner, M Trans Corporation, asserted that the error was not deliberate but rather a bona fide mistake. Citing precedent, they argued against punitive measures for such genuine errors. Court's Consideration: The court acknowledged the petitioner's argument but emphasized the strict adherence to statutory timelines within the GST framework. Despite recognizing the unintentional nature of the mistake, the court's jurisdiction was limited by the prescribed time limits for rectification or refund claims. Precedent and Decision: Although the petitioner cited a Karnataka High Court judgment, the Kerala High Court clarified the absence of binding precedent and underscored the necessity of adhering to statutory provisions. Conclusion: The Kerala High Court's dismissal of M Trans Corporation's petition serves as a stark reminder of the paramount importance of complying with statutory timelines in GST filings. While recognizing the possibility of genuine mistakes, the judgment emphasizes the imperative for timely adherence to procedural requirements to mitigate adverse legal repercussions.

On this divine night, let's absorb the spiritual wisdom of Lord Shiva. May we find inner harmony, positivity, and strength. Wishing you a blissful Mahashivratri!

"Happy Women's Day to all the incredible women! May you be celebrated today and every day for your strength, grace, and achievements.". #TeamSGT #womensday #indianwomen

Updates: 1. The Income Tax department on Monday said it has identified mismatches in ITRs filed by some taxpayers and information on dividend and interest income received from third parties. CBDT said an on-screen functionality has been made available in the compliance portal of the e-filing website https://lnkd.in/dFz89NQ for taxpayers to provide their response. 2. Income tax department has activated a feature on its tax return filing portal that allows tax-payers to view the status of their outstanding, petty and old tax demands. The eligible ones are being 'extinguished. 

Lot of misinformation about Paytm development All mainly talk about two things. Let's address that quickly. 1 Are my mutual fund investments via Paytm at risk? Will my SIPs be affected? No. All that's via a separate company called Paytm Money, which is regulated by SEBI and not RBI. 2 Will my UPI via Paytm stop? No. That's a big miscommunication by the media, to be frank. > The likes of Paytm, PhonePe, GPay or CREDPay etc run UPI, via backend partnerships with certain banks > For PhonePe, its a mix of YES BANK and ICICI Bank. For GPay it's Axis Bank. And for Paytm, it's the sister company Paytm Payments Bank > And, it's the payments bank which has been barred. from doing UPIP transactions, not Paytm Means what? If Paytm switches its backend banking partner, the UPI payments via the app would go on smoothly. And if you would recall, when Yes Bank collapsed, PhonePe onboarded ICICI Bank in less than 18 hours or SO. So, Paytm can do that too. No big deal. Hope that clarifies all the concerns.

May the opening of the Ayodhya Ram Mandir bestow upon our country the benefits of peace, harmony, and prosperity. Jai Shri Ram !!!