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Mar 12, 2024
I-T dept flags financial reporting error after sending advance tax notices; asks tax-payers to wait for updatesThe Income Tax department has clarified that due to a data reporting error by a yet-unnamed entity, taxpayers have received notices for paying higher advance tax for financial year 2023-24. The I-T department has now asked such taxpayers to wait for updated data.Tax-payers who received advance tax payment notices from the income tax (I-T) department in the last few days can heave a sigh of relief for now.The I-T department, in a post on X (formerly Twitter) on March 11 said that it has identified some errors in the financial transaction data reported in the annual information statement (AIS) of taxpayers for the financial year 2023-24. As a result of these errors, taxpayers have received notices for payment of advance tax significantly higher than what they had anticipated for FY 2023-24.Giving an example of what happened, Chirag Chauhan, founder of tax consultancy firm C A Chauhan & Co Chartered Accountants says, “The value of assets sold has been increased by two zeroes, for example, one share of ITC sold for Rs 450 has been shown as Rs 45,000 and property sold for Rs 1.2 crore has been shown as Rs 12 crore in the AIS, implying a huge advance tax liability.”In its post, the I-T department has now asked such taxpayers to wait for further updates on their AIS. This means that they need not take any action on the intimations received, tax experts told Moneycontrol

Mar 11, 2024
CBDT starts sending emails, SMSs to assessees for mismatch in tax profile, financial transactions in FY24The income tax department on Sunday said it has started sending emails and SMSs to assessees whose taxes paid during the current fiscal are not commensurate with financial transactions.The department is undertaking an e-campaign, which aims to inform such persons/entities of significant financial transactions, through email (marked as Advance Tax e-Campaign-Significant Transactions for AY 2024-25) and SMS, urging them to compute their advance tax liability correctly and deposit the due advance tax on or before March 15.

Mar 09, 2024
Select payments to units in IFSC exempted from TDSThe interest on external commercial borrowing, professional fees, referral fees, and dividend income to finance companies and banking units, established in IIFC will be exempted from the tax deducted at source (TDS) from the next financial year.The Centre on Friday notified 14 categories of payments made by any payer to IFSC units on which no TDS is required. This exemption was so far available only to payments associated with the leasing of ships, and aircraft among others. The exemption will be applicable for 10 years effective April 1, 2024.

Mar 07, 2024
Pending income tax refunds relating to AY 2021-22 would be processed by this date; check email for confirmationThere is good news for those taxpayers who are still waiting to get their income tax refund for FY 2020-21 (AY 2021-22). In an order dated March 1, 2024, the Central Board of Direct Taxes (CBDT) has said that these individuals can get their income tax refund by April 30, 2024.Hence these individuals, who wish to check the status of their refund, should check their email inbox or keep a close watch for any intimation notice email from the income tax department. This intimation notice will have the details of the tax refund, if any, payable to them.