The income tax department uses various data analysis techniques to trace individuals who have not filed income tax returns or have underreported their income. As part of this effort, the department is collaborating with different government agencies to obtain information about individuals spending high amounts but not filing ITR or underreporting their income.Latest Update: The Central Board of Direct Taxes (CBDT) has instructed self-reporting organizations (SROs), including banks, post offices, co-operatives, fintechs, and mutual fund houses, to provide detailed information about high-value transactions carried out during the 2022-23 fiscal year. This data must be submitted by June 30.What Are High-Value Transactions?High-value transactions are transactions which involve large amount of money and are reported to the Income Tax Department by banks and other institutions if the transactions cross a certain threshold. High-value transactions are closely monitored by the Income Tax department through the concept of a statement of financial transaction (SFT) in Form 61A or a reportable account in Form 61B, submitted by specific entities. These entities are mandated to provide information about particular high-value transactions which they have registered, recorded, or maintained during the fiscal year. This enables the Income Tax Department to track an individual's financial activities and ensure tax compliance.Here is a list of transactions that may trigger a notice from the Income Tax Department, as this data is collected from the respective reporting authorities:Sr.

ITR stands for Income Tax Return. The Income-tax Act,1961 releases all the ITR forms and specifies the procedures to be followed. This article provides an in-depth understanding of the definition of ITR and the types of ITR forms..What is ITR?Income Tax Return (ITR) is a form in which the taxpayers file information about their income earned and tax applicable, to the income tax department.The department has notified 7 forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Every taxpayer should file his ITR on or before the specified due date.

An Income Tax Return (ITR) is a form that enables a taxpayer to declare his income, expenses, tax deductions, investments, taxes, etc. The Income-tax Act, 1961 makes it mandatory for a taxpayer to file an income tax return under various scenarios. However, there may be various other reasons to file an income tax return even in the absence of requisite income, like carrying forward losses, claiming an income tax refund, for availing the VISA, loan from banking institutions, term Insurance, etc.E-filing refers to the process of filing an Income Tax Return (ITR) online, using the Internet. By accessing the new income tax portal using PAN-based login credentials, individuals can take advantage of a range of features that simplify the tax filing process. The Income Tax Department provides the facility for e-filing an income tax return. Before discussing the steps involved in e-filing an ITR, it is essential for a taxpayer to keep the following documents/information readily available for e-filing their ITR.PAN and AadhaarBank StatementsForm 16Donation receiptsStock trading statements from the broker platformInsurance policy paid receipts related to life and healthBank account information linked to PANAadhaar registered mobile number for e-verifying the returnInterest certificates from banksHowever, you can e-file your ITR on Cleartax by just adding your PAN.

The VPF or Voluntary Provident Fund is a non-compulsory investment made by salaried employees over and above the EPF i.e. Employees Provident Fund. The major advantage is that it is a government-backed savings scheme with low risks and high returns. The VPF, full form is Voluntary Provident Fund. Learn more about VPF in this article. What is Voluntary Provident Fund?Voluntary Provident Fund (VPF) aka Voluntary Retirement Fund is a voluntary fund contribution from the employee towards his Provident Fund (PF) account.

Whether you send funds internationally or receive them, an 8 to 11-characters SWIFT code is essential to complete the transfer smoothly. Banks also use this code to exchange messages between them. Like any other Indian banks, SBI also has its own SWIFT codes.If you are an SBI customer looking for what is SWIFT code of SBI, go through the following sections.Is SWIFT code same for all branches of SBI?The alpha-numeric code used by the State Bank of India to facilitate international transactions is the SBI SWIFT code. There are different SWIFT codes of SBI for different banking services. For each branch of SBI (State Bank of India), there is a different SWIFT code. Banks may ask you for a different SWIFT code for a different types of transactions.

According to the Income Tax Act, a taxpayer’s earnings are divided into 5 heads of income. At the end of each financial year, you must correctly classify your earnings under these heads of income for accurate tax calculation. It is essential for you to know which of your earnings falls under which category. Keep reading to get a clear understanding of the income heads.What are the 5 Heads of Income? The 5 heads of income tax are:Income from SalaryIncome from House PropertyIncome from Profits and Gains from Business or ProfessionIncome from Capital GainsIncome from Other SourcesIncome from SalaryAny income that you receive in terms of the service you provide on a contract of employment is applicable for taxation under this head. This includes salary, advance salary, perquisites, gratuity, commission, annual bonus and pension. The following section governs the Income from the SalarySection 15 describes the taxability of income from SalarySection 16 explains about deduction available under salariesSection 17 explains the components of the Salary like Monetary compensation, Perquisites etc.This tax head also includes some exemptions:House Rent Allowance (HRA): As a salaried individual, if you live in a rented house, you can claim House Rent Allowance for partial or complete tax exemptions.  Transport Allowance: In case of blind/deaf and dumb/orthopedically handicapped employees, you can claim allowance of  Rs 1,600 per month.The tax calculation structure of salary income is as follows, and such information needs to be filled in Schedule S of your ITR form.Income from House Property   An individual’s income from his or her house property or land appurtenant such property is taxable under the head of income from house property. To put it simply, this head includes the policy for calculating the tax on rental income that you receive from your properties.Broadly Income from House Property has three sub-classificationsSelf Occupied Property Let out Property Deemed Let out PropertyIn case you own more than two self-occupied house, then only two of such houses is considered to be self-occupied and the rest are considered to be deemed let out.

As the name suggests, personal loans are available to meet one’s personal financial needs, be it for home renovation, investing in a business, dealing with an emergency medical situation, or covering the expenses of a wedding.  These loans are unsecured, meaning that they don't require collateral. Therefore, they come at a comparatively higher interest rate. Additionally, personal loans usually have a short repayment term and low eligibility criteria, making them easy to obtain. Many individuals question whether there are any tax benefits associated with personal loans, and in this article, we'll address that query.Tax Benefit On Personal LoanNo, there are no specific tax benefits on a personal loan. However, we have identified a few scenarios where you can claim tax benefits on a personal loan in India.

In order to support the activities of religious and charitable institutions, the Indian Government provides several tax rebates under Section 11 of Income Tax Act. However, they are only available for specific types of income and the entities must fulfil certain conditions in order to claim them. Keep reading to learn more. What is Section 11 of Income Tax Act?Section 11 of Income Tax Act provides exemption from tax  for income derived from property under charitable trusts and institutions. In order to claim them, this income must come from properties that are operating solely for religious or charitable purposes and the entities must obtain a registration certificate under Section 12A or Section 12AA of the IT Act. Additionally, there are several other conditions which come into play:The purposes for which individuals provide donations to these entities must come under Section 12 of the Act. Considering the mode and manner of fund deposits and investments, trusts must adhere to the conditions present in the Act’s Section 11(5) and Section 13(1). Income should not benefit the settler directly or indirectly. The institutions or trusts must not be established to benefit a particular religious caste or community. Income or property of such institutions should not apply for the direct or indirect benefit of any person defined under Section 13(3). They include the institution’s founder, manager, trustee, author, relative, etc. Now, income used by charitable institutions for promoting international welfare is also eligible for exemption under Section 11. However, there are certain conditions in relation to this case as well.

ITR-U or Updated Income Tax Return is the form that allows you to rectify errors or omissions and update your previous ITR. It can be filed within two years from the end of the relevant assessment year. The government introduced the concept of updated returns in the Union Budget 2022.Latest update:Filing belated or revised ITRs after 31st December of the AY is not possible. However, you can file an updated return using the ITR-U form from January 1st of AY, which is used to correct minor errors or omissions in your original ITR. With ITR-U, you cannot reduce the taxes due, claim refunds, or increase losses.What is ITR-U?ITR-U or Updated Income Tax Return, is a form that allows taxpayers to update their ITRs by correcting errors or omissions within two years from the end of the relevant assessment year.

There are multiple tax-saving techniques that taxpayers can make use of in order to reduce their tax burdens. These methods come in handy for those individuals who have a high yearly income. If you belong to the above 50 lakh tax slab, you can opt to reduce the tax liability using any of the tax-saving options below. The guide below states how much tax will be deducted for 50 lakhs and various tax-saving methods you can use to reduce your yearly taxable income. Latest Update as per Finance Act 2023.The Finance Act 2023 has changed the tax slabs under the new tax regime. Also, the overall surcharge rate is capped at 25% instead of 37%. The standard deduction for salary income is now available under both the old and new tax regimes.Tax Slabs Under Old vs New Tax RegimeAs per the new income tax guidelines, you can opt for either the new or the old regime while filing your taxes.