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Under Section 80C to 80U, some popular deductions include:
These deductions are not available under the new regime, except:
Yes. PAN must be linked with Aadhaar to file ITR, unless exempted
Yes. PAN must be linked with Aadhaar to file ITR, unless exempted
You can file a belated return till 31st December with a late fee:
After filing ITR, you must verify it (digitally or physically) within 30 days. Without verification, ITR is invalid
If your total tax liability exceeds ₹10,000 in a year, you must pay advance tax in 4 installments.
Tax Deducted at Source (TDS) is deducted by the payer (employer, bank, etc.) on specified incomes like salary, interest, rent, etc
File your ITR. If excess TDS was deducted, the refund is processed by the Income Tax Department.
Transfer of Income without Transfer of Asset [Section 60]
When a person transfers the income without transferring the ownership of the asset from which such income is earned, then, such income will be taxable in the hands of the transferor. The most popular example that we see is the rental income when the owner of the property asks his tenant to make the rental payments in his/her parent’s/wife’s or children's name.
Revocable Transfer of Asset [Section 61]
When a person transfers an asset to another person, keeping a clause in the transaction empowers the transferor to take back the ownership anytime in the future. Such a situation is called Revocable Transfer. As per provisions of Clubbing of Income, when a “revocable transfer” of an asset is made, then any income from that asset shall be taxable in the hands of the transferor.
Clubbing of Income of Spouse [Section 64(1)(ii), 64(1)(iv), 64(1)(vii)]
In common parlance, the easiest way to save tax is practiced by transferring income in the name of your spouse. There are very special provisions to regulate such transfers. All the different scenarios are discussed below.
1. Your spouse works in a concern/entity in which you have a substantial interest.
2. When you and your spouse receive remuneration from a concern, and both have substantial interest in that concern
3. If you have transferred any asset to your wife without adequate consideration: It is a very common practice where a husband transfers an income-earning asset in his wife’s name to save tax.
The nature of the transferred gift is changed by the transferee:
Example:
Mr. Sharma gifted his wife Rs 5,00,000. The wife invests this amount in an FD and starts earning interest on the same. Will this interest income be taxable in Mr Sharma's hands?
Since a gift of Rs 5,00,000 has been made to a relative, it will not be taxable. But the interest earned on FD will be taxable in the hands of Mr. Sharma as per the provisions of section 64(1)(iv). The clubbing provisions will be attracted
Clubbing of Income of Minor Child [Less than 18 years] [Section 64(1A)]
Any income earned by a minor child is clubbed in the hands of either of his/her parents, whose income (excluding minor child income) is greater. For example, in a Fixed deposit taken in the name of a minor child, the interest earned Will be clubbed with the income of the highest-earning parent.