In July of last year, the government released a new rule under the Income Tax Act. If an individual withdraws money from small savings schemes such as public provident fund (PPF), post office deposits, recurring deposit, or national savings certificate, he or she is responsible to pay TDS (tax deducted at source) at the rate of 2-5 per cent if the individual has not submitted ITR in the previous three years, according to Section 194N of the Income Tax Act. TDS will be deducted u/s 194N at 2% if an individual withdraws more than Rs 20 lakh but does not surpass Rs 1 crore from all post office schemes, including PPF or 5 per cent if the amount exceeds Rs 1 crore if the individual has not submitted income tax returns (ITR) for the preceding three assessment years.
The rates and thresholds are determined by whether or not the individual withdrawn money has submitted an ITR in the three previous appraisal years for which the filing ITR deadline has ended. TDS is not deducted for cash withdrawals up to Rs 1 crore in a year if you have submitted an ITR for any of these three assessment years, and TDS is deducted at a rate of 2% for cash withdrawals above Rs 1 crore. TDS regulations apply to cash withdrawals from banks, co-operative banks, and post offices. But even if you submit Form 15H/G, a statement that your income is below the exempted cap, you won’t be able to avoid paying TDS. TDS is withheld at the depositor’s Post Office, and the account holder is informed in writing. The liable postmaster is entirely responsible for TDS deduction in accordance with the act since it is a legal obligation. TDS non-deduction can result in a penalty or a recovery, depending on the situation.
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Chola operates from 1,135 branches across India with assets under management above Rs 75,000 crore.
Cholamandalam Investment and Finance Company (Chola), the financial services arm of over Rs 38,000-crore Murugappa Group, on Tuesday announced that it has joined the consortium — Vishwakarma Payments — that has applied for an new umbrella entity (NUE) licence for retail payments from regulator Reserve Bank of India (RBI).
FSS, Zoho, Zerodha, RazorPay, Ujjivan and Airpay are also part of the Vishwakarma Payments consortium. With aspirations to fuel a less-cash and more-digital micro-payments economy, RBI has set up a framework to authorise pan-India umbrella entities that will focus on retail payment systems.
The interoperable infrastructure will cater to banks and non-banks and enable innovative use-cases to solve the diversity, depth and width of consumers and small businesses in India. The consortium expects to focus on building an agile platform for seamless digital payments. Chola operates from 1,135 branches across India with assets under management above Rs 75,000 crore.
We invest to get returns and in such uncertain times to make our ends meet, only one income source for the household shall not suffice. So, people tend to go for some passive income sources such as put their surplus money in some deposits etc. or if have some property to their disposal may even let it out for that extra financial earnings. And now amid high inflation concerns owing to massive liquidity induced world over by global central banks, we think of making inflation beating returns.
6 Investments To Earn Inflation Beating Returns
This is also because over a period of time the value of money depreciates say considering 8 percent inflation rate, Rs. 100 will be valuing just Rs. 92 after a year. So, one is always on the hunt for options which can earn a return higher than the prevailing inflation rate.
So, here are listed out:
1. Real estate:
In the long term, real estate which should not make over one-third of your total allocation gives inflation-beating returns.
2. Equity:
For investment into equity a medium-longer term horizon pays off and the companies need to be selected basis strong fundamentals, future prospects, scope industry-wise. Investors with not much know-how or who fail to select stocks on their own can even go by the SIP option in equity mutual funds. Amid the pandemic blow out, Nifty returns have been a staggering 70%, which is overwhelming for this unusual year. And through the SIP route, the compounding impact will enable on to beat inflation by a good enough margin.
Diversified equity mutual funds may indeed give risk-adjusted higher return. Also, in a scenario when inflation trends higher equity tends to perform well.
3. Dividend paying stocks:
This is another basket of asset that not only helps one have a regular source of income but even lets earn good dividend income over time. Say suppose you hold a share like TCS which generally gives out increasing dividend over time say in a horizon of 10 years then you will surely beat inflation. But here what comes into play is the selection of the good stocks that pay growing dividend over time and you continue to hold it. And for identification of such stocks the easy way out is to check if EPS growth is in line with the dividend per share over a period of time.
4. Gold:
Gold considered as a store of value historically is also a hedge against inflation. And in current time, when inflation is viewed as an emanating risk because of the world-over infused liquidity infused by central banks, gold may again hit past levels of Rs. 50000 by this year end. And can again give inflation-beating return this year as well.
5. Global ETFs:
For generating higher return than inflation one can look at global ETFs and focus on economies with lower inflation in contrast to India. And via this route, investors will be able to reap return in a medium time frame.
6. Commodity stocks:
These stocks such as those from metal, agri-commodities or oil sector tend to benefit in times of higher inflation. In such time, the producers get the pricing power and companies in the space can make the best out of it.
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Bajaj Allianz General Insurance today revealed the introduction of ‘Criti-Care,’ a critical illness policy that enables customers to customise their coverage by choosing any or all of the policy’s five parts, as well as the waiting period and survival period. As stated in the policy, this policy covers 43 vital illnesses in both the initial and advanced stages. According to the company, the concept behind this initiative is to not only provide customers with the ability to configure the policy according to their requirements but also to offer them much-needed financial assistance in critical periods to help them recover quickly and efficiently. Criti-Care is a benefit-only plan, which ensures that once a customer is infected with the listed illness, they will receive a lump sum.
Each section’s sum insured ranges from Rs 1 lakh to Rs 50 lakh. The policy’s maximum gross Sum Insured is Rs 2 crore. Cancer Care, Cardiovascular Care, Kidney Care, Neuro Care, Transplant Care, and Sensory Organ Care are the policy’s five sections. Each section has a distinct list of illnesses divided into two categories: ‘Category A’ for initial ailments and ‘Category B’ for late-stage ailments. If the claim comes under Category A, the individual is liable for 25% of the section’s sum insured, while a claim under Category B is eligible for 100% of the section’s sum insured. The individual can select a waiting period of 120 days or 180 days, as well as a post-diagnosis survival period of 0 days, 7 days, or 15 days. This plan is designed on an individual basis and can be obtained for one, two, or three years.
The premium for this scheme is determined by the Member’s age, the Sum Insured chosen, the Critical Illness “Section” chosen, the Waiting Period, and the Survival Period. The individual can also take advantage of additional privileges that are incorporated into the policy, up to the policy’s limit. Cancer Reconstructive Surgery, Cardiac Nursing, Dialysis Care, Physiotherapy Care, and Sensory Care are among the benefits provided. Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, stated on the policy’s launch, saying, “We have observed that many people are becoming susceptible to critical illnesses due to changes in lifestyle, amongst other causes; and the treatment costs for such ailments can substantially affect a person’s financial health. With our modular product Criti-Care, our aim is to not only allow our customers the freedom to design their policy as per their needs, but also provide them with much needed support through additional benefits like Dialysis care, Physiotherapy care, etc. that can help them with faster recovery. Thus, enabling them to stay worry-free and live a life of dignity.”
Sum assured (SA) options available under the policy
Section
Minimum SA for entry age 18-65 years
Maximum SA up to entry age 60
Maximum SA for entry age 61-65
Cancer Care
1 lakh
50 lakhs
10 lakhs
Cardiovascular Care
1 lakh
50 lakhs
10 lakhs
Kidney Care
1 lakh
50 lakhs
10 lakhs
Neuro Care
1 lakh
50 lakhs
10 lakhs
Transplants Care & Sensory Organs Care
1 lakh
50 lakhs
10 lakhs
Premium calculation
Age
Members
Section & Sum Insured
Premium excl. GST in Rs
Cancer Care
Cardiac Care
Kidney Care
35
Member 1
Rs 50 lakhs
Rs 50 lakhs
Rs 50 lakhs
Rs 5,200
33
Member 2
Rs 25 lakhs
Rs 25 lakhs
Rs 25 lakhs
Rs 2,600
8
Member 3
Rs 10 lakhs
Rs 10 lakhs
Rs 10 lakhs
Rs 930
Waiting period: 180 days
Survival period: 7 days
Adults must be between the ages of 18 and 65 to qualify, whereas children must be between the ages of 3 months and 30 years. Criti-Care has no exit age and the renewal is valid for a lifetime. The policy covers the self, spouse, dependent children and grandchildren, parents and parents-in-law, sister, brother, aunt, and uncle. This policy’s premium can be paid in installments, and discounts for wellness, long-term, and online purchases are available as outlined in the policy.
Any critical illness or its symptoms diagnosed within the first 180/120 days of the policy’s launch date, as specified in the policy schedule, will be excluded. This restriction, though, will not extend to an insured whose coverage has been renewed without delay for additional years. Second, the insured must survive for 0/7/15 days from the date of diagnosis and completion of the critical illness definition, as specified in the insurance schedule, before the claim benefit is paid.
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A fixed deposit, also known as an FD, is a form of investment option marketed by banks, non-banking finance companies (NBFCs), and post office. FDs allow you to invest for a set period of time and receive a fixed rate interest rate upon maturity. Bank fixed deposit (FD) rates are influenced by adjustments in the Reserve Bank of India’s (RBI) monetary policy, such as repo rates, base rates, etc, as well as the banks’ internal liquidity status, economic circumstances, and the rate of credit demand. Lenders such as State Bank of India (SBI), ICICI Bank, HDFC Bank, and Axis Bank provide FDs with terms ranging from 7 days to 10 years. And apart from banks, FD deposits with the Post Office can be a decent place to proceed. Rates on Post Office Time Deposits are revised quarterly. Fixed deposits (FDs) are perceived to be the ideal investment alternative for individuals looking for stable and guaranteed returns on their deposits. Different banks’ FD interest rates vary depending on the deposit amount, deposit tenure, and type of investor i.e. regular or senior citizen. The current FD interest rates of Axis Bank, SBI, HDFC Bank, ICICI Bank, and Post Office are listed below.
SBI FD Rates
SBI FD offers 2.9 per cent interest rates on terms ranging from 7 to 45 days. It will offer 3.9 per cent on term deposits ranging from 46 to 179 days. FDs with maturity ranging from 180 days to less than one year will offer a 4.4 per cent interest rate. FDs maturing in two to three years will yield 5.1 per cent. FDs maturing in 3 to 5 years will provide 5.3 per cent, while term deposits maturing in 5 to 10 years will continue to provide 5.4 per cent. These rates are in effect from January 8, 2020.
Tenure
ROI for general public
ROI for senior citizens
7 days to 45 days
2.90%
3.40%
46 days to 179 days
3.90%
4.40%
180 days to 210 days
4.40%
4.90%
211 days to less than 1 year
4.40%
4.90%
1 year to less than 2 years
5.00%
5.50%
2 years to less than 3 years
5.10%
5.60%
3 years to less than 5 years
5.30%
5.80%
5 years and up to 10 years
5.40%
6.20%
Axis Bank FD Rates
Axis Bank, a private sector lender, has updated interest rates on fixed deposits (FDs) with effect from March 24. Following the most recent revision, Axis Bank now offers interest rates ranging from 2.50 per cent to 5.75 per cent on term deposits maturing in 7 days to 10 years.
Tenure
ROI in % for general public
ROI in % for senior citizens
7 days to 14 days
2.5
2.5
15 days to 29 days
2.5
2.5
30 days to 45 days
3
3
46 days to 60 days
3
3
61 days < 3 months
3
3
3 months < 4 months
3.5
3.5
4 months < 5 months
3.5
3.5
5 months < 6 months
3.5
3.5
6 months < 7 months
4.4
4.65
7 months < 8 months
4.4
4.65
8 months < 9 months
4.4
4.65
9 months < 10 months
4.4
4.65
10 months < 11 months
4.4
4.65
11 months < 11 months 25 days
4.4
4.65
11 months 25 days < 1 year
5.15
5.4
1 year < 1 year 5 days
5.15
5.8
1 year 5 days < 1 year 11 days
5.1
5.75
1 year 11 days < 1 year 25 days
5.1
5.75
1 year 25 days < 13 months
5.1
5.75
13 months < 14 months
5.1
5.75
14 months < 15 months
5.1
5.75
15 months < 16 months
5.1
5.75
16 months < 17 months
5.1
5.75
17 months < 18 months
5.1
5.75
18 Months < 2 years
5.25
5.9
2 years < 30 months
5.4
6.05
30 months < 3 years
5.4
5.9
3 years < 5 years
5.4
5.9
5 years to 10 years
5.75
6.5
HDFC Bank FD Rates
On deposits maturing between 7 days and 10 years, the bank provides interest rates ranging from 2.50 per cent to 5.50 per cent. Senior citizens will get interest rates that are 50 basis points higher than the general public. Senior citizens can earn interest rates ranging from 3% to 6.25 per cent on FDs maturing in 7 days to 10 years from the bank. These rates are in effect from 13 November 2020.
Tenure
ROI in % for general public
ROI in % for senior citizens
7 – 14 days
2.50%
3.00%
15 – 29 days
2.50%
3.00%
30 – 45 days
3.00%
3.50%
46 – 60 days
3.00%
3.50%
61 – 90 days
3.00%
3.50%
91 days – 6 months
3.50%
4.00%
6 months 1 days – 9 months
4.40%
4.90%
9 months 1 day < 1 Year
4.40%
4.90%
1 Year
4.90%
5.40%
1 year 1 day – 2 years
4.90%
5.40%
2 years 1 day – 3 years
5.15%
5.65%
3 year 1 day- 5 years
5.30%
5.80%
5 years 1 day – 10 years
5.50%
6.25%
ICICI Bank FD Rates
On deposits maturing in 7 days to 10 years, ICICI Bank offers interest rates ranging from 2.5 per cent to 5.50 per cent. Senior citizens can get an interest rate that is 50 basis points (bps) higher than regular customers. These rates are in force from 21 October 2020.
Tenure
ROI in % for general public
ROI in % for senior citizens
7 days to 14 days
2.50%
3.00%
15 days to 29 days
2.50%
3.00%
30 days to 45 days
3.00%
3.50%
46 days to 60 days
3.00%
3.50%
61 days to 90 days
3.00%
3.50%
91 days to 120 days
3.50%
4.00%
121 days to 184 days
3.50%
4.00%
185 days to 210 days
4.40%
4.90%
211 days to 270 days
4.40%
4.90%
271 days to 289 days
4.40%
4.90%
290 days to less than 1 year
4.40%
4.90%
1 year to 389 days
4.90%
5.40%
390 days to < 18 months
4.90%
5.40%
18 months days to 2 years
5.00%
5.50%
2 years 1 day to 3 years
5.15%
5.65%
3 years 1 day to 5 years
5.35%
5.85%
5 years 1 day to 10 years
5.50%
6.30%
5 Years (80C FD)
5.35%
5.85%
Post Office Fixed Deposit
The post office term deposit scheme is similar to bank FDs. This scheme comes with a tenure ranging from 1 to 5 years. The Post Office provides a 5.5 percent interest rate on one-year and three-year period deposits. For five-year time deposit accounts, the Post Office provides a 6.7 percent interest rate. Post Office term deposit interest rates are revised on a quarterly basis and the current rates are last revised on April 1, 2021.
Tenure
ROI in %
1 year
5.50%
2 years
5.50%
3 years
5.50%
5 years
6.70%
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At a time when Indian government is considering roll out of its own digital currency and carving out a route for investors to exit their investments in crypto, considering past returns of a huge 800 percent in the financial year gone by on bitcoin, you may be tempted to bet on these highly popular digital tokens.
Wish To Invest In Bitcoin After Its 800% Run In FY21: Here Are The 4 Watch Outs
Further the centre is considering putting a ban on trading in cryptos and for it, they are looking at blocking IP addresses of such platforms.
So, as a matter of fact here are some watch-outs to consider if you too are inclined to invest in cryptos including Bitcoin that showed remarkable gains over the last fiscal year:
1. Sharp rally and huge volatility in the asset class makes it difficult to put forth any trend. Also, being highly volatile these should be opted by only investors with high risk-appetite. Besides, the past return of a huge 800 percent is seen as unsustainable for now.
2. Also, as the current format of trading in such cryptos is designed keeping regulation out of transactions, the price movement on a daily basis becomes unpredictable. Thus lump sum investments in such asset class which lack government support and regulatory framework should be strictly avoided to keep huge losses at bay.
Instead investors can still look at the SIP option in cryptos or bitcoin which is a disciplined investment approach similar to mutual funds.
3. Amid the various, regulations to curb their trading, stakeholders are making representations before the government and are coming up with ways to establish investment credentials for such assets.
4. Even though there remain insights that the bitcoin could scale to levels of $1,00,000 mark in this ongoing fiscal year, nonetheless what can come as a hurdle are the regulatory guidelines and any profit booking. Factors though pushing the crypto higher include its limited supply as well as mainstream acceptance by global financial institutions.
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Because of the influence of compound interest, if you put your capital in the right ways, it will rise significantly over the years. A secure investment is one that involves little to no uncertainty. They are usually appropriate for individuals who are retired who do not want to welcome risks. Currently, there are many equity opportunities available in the market that offer decent returns while still providing tax advantages. Small savings schemes such as PPF, Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme, NSC, and others are popular investment strategies for risk-averse investors. For investors with a low-risk appetite, there are bank FDs and debt mutual funds in addition to small savings schemes. That being said, in order to choose the right choice for you, you must first assess your investment period and financial objectives. If you’re still not sure which one to go for, look at the return factor to see which one has the highest returns across the shortest period of time. The easiest ways to do this is to figure out how long it takes each investment product to double your money. It would be easier to choose a scheme until you know which strategy will double your holdings the fastest. You can simply achieve this by using the ‘Rule of 72.’
What is “Rule of 72”?
The Rule of 72 is an easy way to calculate how long it will take for an investment to double the fixed annual rate of interest. Investors can get a rough estimate of how much time it will take for their investment to double by dividing 72 by the annual rate of return. This rule is commonly used in instances concerning compound interest. It should be noted that a simple interest rate does not fit effectively with the Rule of 72. Bank FDs are presently providing around 5% interest to regular investors. If you want to deposit Rs 5 lakh in a fixed deposit of a bank with an interest rate of 5%, divide 72 by the interest rate of 5% to find out how long it will take for Rs 5 lakh to double. So 72/5 equals 14.4 years. As a result, if the interest rate is 5%, the money will double in 14.4 years. If your average annual equity return is 15%, your investment will double in 4.8 years (72/15). The thumb rule is typically applied to fixed-rate instruments rather than volatile asset categories such as equities. You can also use this rule and find out how much interest rate you need to double your money in a certain period of time. For instance, suppose you want your money to double in ten years. 72 divided by ten equals 7.2 per cent. To double your money in ten years, you’ll need a 7.2 per cent interest rate.
Types of fixed-income instruments that double your returns
Here are several investments that can double the returns of your investments in a certain period of time.
Fixed-income instruments
Current ROI
Rule 72
Money will be double in
Bank FDs
Around 5%
72/5
14.4 years
Public Provident Fund (PPF)
7.10%
72/7.1
10.14 years
Sukanya Samriddhi Yojana
7.60%
72/7.6
9.47 years
Kisan Vikas Patra
6.90%
72/6.9
10.43 years
National Savings Certificate
6.80%
72/6.8
10.5 years
5-Year Post Office Recurring Deposit Account (RD)
5.80%
72/5.8
12.41 years
Senior Citizen Savings Scheme
7.40%
72/7.4
9.72 years
Note: It is important to note that the Rule of 72 should be used to make financial calculations and take into account the nature of compound interest. As long as the interest rate is less than around 20%, the “rule” is pretty effective.
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With the second wave engulfing the country, let us take a look at the insurance options available to keep oneself and one’s family financially safe during this pandemic. The Insurance Regulatory and Development Authority of India (Irdai) had asked insurers to introduce standard insurance policies in all categories during the coronavirus pandemic. The majority of existing health insurance policies allow claims against Covid-19 for hospitalisation costs, subject to exclusions, waiting periods, and pre-existing conditions. Covid-specific insurance products offer a number of advantages that a standard health insurance policy might not. In these times of increased risk, you should review your current health insurance plan and make an informed decision about whether you should purchase an additional Covid-specific plan or not after carefully weighing your options.
Saral Jeevan Bima
Saral Jeevan Bima is a Standard, Individual term life insurance product that is specially designed for the first-time life insurance buyer. Saral Jeevan Bima is a simple and affordable Term Insurance Plan that pays a lump sum benefit in the event of the Life Assured’s death. The Basic Sum Assured, Premium Payment Term, Policy Term, and Premium Payment Frequency can all be customised to meet your insurance needs. The total amount of premium payable in a policy year, excluding taxes, underwriting extra premiums, and any modal premium loadings, is known as the annualised premium. It is an individual, Non-Linked, Non-Participating Life Insurance Pure Risk Premium Product.
Saral Pension Annuity Policy
This is a pension-related product. Except to the extent that commutation of such benefits is allowed under the Income Tax Rules, benefits by way of surrender, complete withdrawal, or maturity/vesting will be available in the form of annuities. It is an individual non-linked traditional pension plan with Guaranteed Bonuses for the first 5 years and Simple Reversionary Bonuses thereafter, if any, for the remainder of the policy term. An annuity is a payment that is made for the rest of the annuitant’s life. Following the annuitant’s death, the nominee or legitimate heirs will receive a full refund of the purchase price. Monthly, quarterly, half-yearly, and annual intervals are available. Only arrears payments are made, ensuring that the first annuity payout occurs after the modal term.
Corona Kavach
On a positive COVID-19 diagnosis in a government-approved diagnostic centre that necessitates hospitalisation, policyholders are entitled to the benefits of the policy. Individual and family floaters are available for the “Corona Kavach Policy.” The following family members can be covered under the policy. This is a one-time payment COVID-19 treatment indemnity policy that covers COVID-19 treatment for up to 9.5 months. The expenses incurred during organisational treatment or hospitalisation are covered by this policy. All bill settlements have been made completely cashless, allowing the doctor to focus entirely on the patient rather than making endless rounds to the insurance company. This policy covers pre-hospitalization expenses for 15 days and post-hospitalization expenses for 30 days.
Corona Rakshak
The Corona Rakshak Health Insurance Policy pays out a lump sum that can be used to cover medical expenses. It is an individual, Non-linked, Non-participating, Health Insurance, Pure Risk Premium product. No medical examination is required for this streamlined issuance. A minimum premium of Rs 156.50 is required, with a maximum premium of Rs 2,230. Anyone between the ages of 18 and 65 can apply for coverage. Short-term health insurance is provided by the Corona Rakshak Health Insurance Plan. You have the option of 3.5 months, 6.5months, or 9.5 months of coverage. COVID 19 tests performed outside of a government-approved facility will not be accepted. If a person travels to a country where the Indian government has imposed travel restrictions, the overage will be stopped.
Mashak Rakshak
According to the Insurance Regulatory and Development Authority of India’s guidelines, starting April 1, all general and health insurance companies must offer Mashak Rakshak, a standard vector-borne disease health policy (IRDAI). On positive diagnosis of any of the following vector-borne diseases requiring hospitalisation for a minimum continuous period of 72 hours, a lump sum benefit equal to 100% of the Sum Insured shall be payable. Dengue fever and malaria are two of the most common Vector-Borne diseases transmitted by mosquitoes, ticks, and other insects. At the same time, because of the rising cost of medical care, treatment for these diseases ranges from Rs 25,000 to Rs 1 lakh or more.
Arogya Sanjeevani health policy
Medical expenses have the potential to throw your financial plans into disarray! As a result, it is recommended that you secure your medical expenses with a cost-effective insurance plan that will provide financial assistance in the event of a medical emergency. This health insurance plan aims to provide a wide range of coverage to protect you from financial hardships caused by hospital bills.
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To strengthen the tax filing method, the Income Tax Department has retired the excel and java-based utility and replaced them with a new offline JSON-based utility for the fiscal year 2021-22. The new tool will assist taxpayers in importing pre-filled data and editing it before filing their income tax return (ITR). Let’s take a look at the benefits of this new offline utility.
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The Income Tax Department has issued an offline utility for taxpayers filing ITR 1 and 4 for the financial year 2020-21. “The user can now download and fill the offline utility for ITR 1 & 4 (AY 2021-22),” according to the online e-filing site. It also claimed that the utility for other ITRs will be unlocked soon. The offline utility is accessible on the e-filing platform and is centered on emerging technologies “JSON” (JavaScript Object Notation), a lightweight data storage format. The offline utility is available for use on computers running Windows 7 or later editions. While issuing the procedure for filing, the department also confirmed that “This Offline Utility is enabled only for ITR-1 and ITR-4. Other ITRs will be added in the utility in subsequent releases.” ITR Form 1 (Sahaj) and 4 (Sugam) are forms that serve a significant number of small and medium-sized taxpayers.
An individual with an income of up to Rs 50 lakh who earns income from salary, one house property / other sources, interest, and so on can file a Sahaj. Individuals, Hindu Undivided Families (HUFs), and firms with a total income of up to 50 lakh and income from business and profession can file ITR-4. IT return tax preparers can import and pre-fill data from the e-filing site, as well as fill in the gaps. Because the option to upload ITR to the e-filing portal is not yet available, filers can use the offline utility to fill out and save their returns. The department further added that “Once filing is enabled, you can upload the same at e-filing portal.”
Taxpayers need to use the offline utility to retrieve pre-filled data from the income tax e-filing site and upload it into the new utility, which allows taxpayers to edit and save returns, pre-filled data, and profile data as well. According to Nangia Andersen India Director Neha Malhotra, the fresh utility is a user-friendly functionality for filing returns and will provide greater convenience to taxpayers. She further confirmed with PTI that “The utility itself provides help in the form of FAQs, guidance notes, circulars and provisions of the law so as to enable hassle-free return filing. The government’s efforts, to build a favourable tax regime for taxpayers cannot be disregarded. Augmenting simplicity and removing impediments will go a long way in increasing compliance and facilitating good governance.”
According to the newly notified forms, an individual whose tax has been deferred due to ESOPs allotted by an eligible startup is not permitted to file ITR 1 or 4. Now, the employee does not have to pay tax when exercising the option, i.e. when converting the ESOPs into shares.
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5 New Tax Rules You Need To Be Aware Of
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