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  Houses no longer remain with families for generations. As part of today's urban lifestyle, people commonly change residences frequently during their lifetimes. In order to upgrade one's lifestyle, one must sell one home and buy another. The sale of property during such a transition is often a profitable venture for savvy customers. Long-term capital gains (LTCG) are the result of these gains. When a house is sold after being occupied for more than two years, it generates long-term capital gains. A profit earned in this way is taxed under capital gains at a rate of 20 per cent under the Income Tax Act, of 1961. The provisions of Section 54 of the income tax act allow one to reduce or even entirely eliminate tax liability on LTCG. It is possible to completely absolve capital gains if the entire amount is used for the purchase or construction of a new property. A ready-to-move-in house can be purchased or a new house can be built with the money. When an individual books an unde...

Salaried employees earning more than Rs 2.5 lakh are required to file an income tax return (ITR). It is possible for employees to reduce their overall tax outgo through various provisions in the income tax rules . Despite their tax-saving potential, many employees fail to take advantage of these provisions. There are five common problems salaried employees face and their solutions are presented in this article. Salaried Employees Are Unaware Of Deductions Available Many salaried employees don't know about the deductions they can claim in addition to Section 80C. The following deductions must be made aware of for tax planning purposes, i.e. 80CCD (1B), 80D, 80E, 80EEA, 80EEB, 80G, 80TTA, 80TTB and 80U. Due to Many 16 Forms, Less TDS Deducted Due to standard deductions and the Basic Exemption, TDS is less deducted when an employee changes jobs, so at the time of filing income tax returns, the employee ends to pay self-assessment tax along with interest.  Hence, employees should decla...

To replace all income tax return forms, other than ITR-7, the tax department is proposing a single draft common new ITR Form , which taxpayers can download based on income and filing status questions they answer. There will be an option to choose either the ITR-1 form or the ITR-4 form directly for assessees who are eligible to file those forms or the common new ITR form for those who are not. The common income tax return form, when implemented, will be the only option for taxpayers who need to file ITR-2 (ITR for capital gains) and ITR-3 (ITR for business returns). The proposed common ITR can simplify the ITR filing process for CBDT, but the constant changes in the process can be challenging for taxpayers. Taxpayers who do not possess detailed knowledge of tax laws may end up having to hire a chartered accountant to answer their questions. The new common ITR has the following pros and cons. Selecting the Correct ITR is No Longer Necessary Currently, taxpayers have to choose the right ...

A taxpayer is not able to open the GSTR-3B form of October 2022 on the GST Common Portal if the GSTR-1 form of the same tax period October 2022 is not filed yet. CBIC has warned taxpayers via tweet with brief details. A taxpayer who has not furnished the GSTR-1 for the previous period including the current period will not be able to file the GSTR-3B form for the current period. Sections 37 & 39 of the Central Goods and Service Tax Act (CGST), 2017 have been amended by the Central Government vide Notification No. 18/2022-Central Tax dated 28th September 2022 with effect from the 1st of October, 2022. In accordance with section 37(4) of the CGST, Act, taxpayers who have not filed GSTR-1 for a previous tax period shall be barred from filing GSTR-1 , and in accordance with section 39(10), taxpayers who have not filed GSTR-3B for the same period shall not be permitted to file GSTR-3B. Unless a registered person has furnished the details of outward supplies for any of the previous...

The registered person reconciles its purchase invoices with the available Input Tax Credits (ITCs) reflected in GSTR-2A and GSTR-2B using GSTR-2A and GSTR-2B. The GSTR-2A and GTSR-2B must be understood for this purpose. GST Act (Goods and Services Tax) has implemented two auto-populated returns, GSTR-2A and GSTR-2B, which contain the following information: GSTR-2A: Details of auto-drafted supplies GSTR-2B - This is an auto-drafted statement of GST input tax credit There is significant information included in the above-referred statement regarding inward supplies as well as input tax credits. Understanding the differences between these two statements is crucial since they cover the same information. It is the purpose of this article to discuss the differences between GSTR-2A and GSTR-2B in detail. Particulars GSTR-2A Form GSTR-2B Form Type of Statement It is dynamic in nature. Information that the supplier uploads keeps changing from day to day. In nature, it is constant. Suppliers...