Finance Buddy

Having time allows taxpayers to take a considered decision regarding which tax regime to follow-new or old. "only in the old tax regime do you get tax deductions on investments" Says Sujit Bangar . Source Link:  https://www.business-standard.com/finance/personal-finance/align-tax-saving-investments-with-financial-goals-and-asset-allocation-124112801096_1.html Website Link:   https://www.taxbuddy.com/

Multiple experts have voiced their concerns about the Centralised Processing Centre (CPC) of the income tax department making errors in processing income tax returns (ITR). The Karnataka State Chartered Accountants Association (KSCAA) has sent a representation to the CBDT in this regard. KSCAA's representation says that the CPC has erred in considering the due date for filing ITR and has imposed penalties even for those who filed ITR well within the deadline. CPC Processing Errors, according to KSCAA According to the representation by KSCAA (a copy of which was seen by  ET Wealth Online ) the errors in processing of ITRs noticed by them are as follows: Old/ New tax regime:  Numerous taxpayers have received intimations from CPC erroneously calculating their tax liability under the old tax regime, despite these taxpayers having opted for the new tax regime at time of filing their returns. Incorrect due date considered:  Certain taxpayers, specifically partners of firms lia...

Checking the status of Goods and Services Tax ( GST ) refund is crucial for businesses and individuals who are eligible such money due to various reasons. Understanding the eligibility criteria and common delays can streamline this experience. When can a GST refund be claimed? Refunds can be claimed if there is an unused balance in the electronic cash ledger due to overpayment. GST paid on export of goods/services.   That paid on the supply of goods/services to a Special Economic Zone.   Refunds can be claimed on inputs used for the supply of nil-rated or exempt goods and services. Any refund resulting from court orders, decrees, or judgments is eligible.   Diplomats, embassies, and certain international organisations (e.g., the United Nations) can claim refunds on the GST paid.   Refunds can be claimed if GST was paid in excess due to errors during the filing of returns.   "Once your application is submitted, the tax authorities will review your claim. If ever...

Navigating the complexities of the Goods and Services Tax (GST) system in India is essential for every taxpayer, especially when it comes to managing refunds. Designed to simplify tax compliance and enhance ease of doing business, the GST framework offers a lifeline to businesses by enabling refund claims in specific scenarios. These refunds can play a pivotal role in maintaining healthy cash flow and operational efficiency. Whether you’re an exporter awaiting input tax credits or a business owner addressing overpayments, understanding the nuances of checking your GST refund status is key. In this article, we break down the eligibility criteria, step-by-step filing process, and common reasons for delays in GST refunds. Sujit Bangar, founder of Tax Buddy , provided detailed insights on checking your GST refund status, including eligibility criteria, the filing process, and common causes of delays. Eligibility for GST Refunds Before filing for a GST refund, it’s crucial to...

IPL Auction 2025:  The IPL is widely regarded as the most lucrative domestic T20 cricket league in the world, attracting top talent with whopping salaries. With significant sponsorships and broadcast deals, IPL franchises spare no expense in securing the services of top players. Two days back, Rishabh Pant made history by becoming the most expensive purchase in IPL history, signing with Lucknow Super Giants for a record fee of Rs 27 crore in the mega auction. Similarly, Australian fast bowler Mitchell Starc fetched a hefty sum during the IPL 2025 auction in Jeddah, Saudi Arabia. Starc was acquired by Delhi Capitals (DC) for an impressive Rs 11.75 crore. It is worth mentioning that Starc previously made headlines in the IPL 2024 auction when he became the highest-priced player ever sold, going to Kolkata Knight Riders (KKR) for Rs 24.75 crore. How are players taxed on their IPL salaries? Taxation of Indian and foreign players in India, particularly in events such as the IPL (Indian...

Union Minister Ashwini Vaishnav on Monday announced the PAN 2.0 project which is set to modernise the Permanent Account Number (PAN) system. PAN 2.0 is introducing a QR code to streamline tax compliance and improve data security for taxpayers. Taxpayers should know that the updated PAN card is optional and free of cost, however, it is important to know its necessity and implications for existing PAN cardholders. What is PAN 2.0? With PAN 2.0 the government aims to simplify and unify business and individual taxpayer identification and make PAN a Common Business identifier. This upgrade integrates PAN with other identifiers like TAN and TIN, providing a seamless, single-point solution for compliance and financial transactions. Says CA Ashish Niraj, Partner, A S N & Company, Chartered Accountants, “It will be a single source of truth and data consistency. For long there was a need for such a single identifier. Taxpayer registration will become more technologically advanced. Also, the...

Tax query : I am 28 years old and still unemployed. My mom gives me Rs 30,000 as pocket money every month. Will I have to pay taxes? I am going to file my ITR nevertheless but not sure if I have to pay any taxes on the money that is credited into my account. My mother is a working professional. Name withheld Reply by Sujit Sudhakar Bangar, Founder, TaxBuddy .com  In India, certain gifts are subject to taxation under specific circumstances. Understanding these rules is crucial to avoid unforeseen tax obligations. Familiarising yourself with when a gift is exempt from tax and when it is not can help prevent any surprises in the future. Generally, gifts exceeding Rs 50,000 are taxable, unless they are received from close family members like parents, siblings, or spouses. Section 56 of the Income Tax Act outlines which movable properties, including shares, bullion, jewelry, artworks, and virtual digital assets, are exempt from taxation in the case of weddings but taxable if received f...