Income Tax New Rule: Every person living across the country has to pay a part of his income as income tax. Recently, the Income Tax Department has changed some rules related to Income Tax. Due to these changes, taxpayers have got a lot of relief. Know about these new rules related to the Income Tax Department in the news.
Income Tax New Rule: The Income Tax Department keeps an eye on the financial transactions happening across the country. Apart from this, the Income Tax Department also changes the tax rules from time to time.
Recently, the Income Tax Department has changed the tax rules (Income Tax New Rule). Due to this, taxpayers are getting a lot of benefits. Due to these changes in the tax rules, now taxpayers will not have to face any kind of difficulties. Let us know the complete details about this in detail.
It is also necessary to get the approval of the authorities-
There will no longer be a need to go to jail in cases of income tax (Income Tax Latest Update) related offenses. Taxpayers will be able to avoid going to jail by paying the penalty. However, approval of the tax authorities will be necessary for this. Actually, there is a provision of jail sentence in the Income Tax Laws for defaulting on certain types of payments (Payment Default New Rules)
CBDT took a big step-
The Central Board of Direct Taxes (CBDT Update) has taken a big step to make tax compliance easier. They said that all the offences under the Income Tax Act will now be compoundable. This means that there is no need to go to jail in cases of offences related to income tax (Income Tax Rules). Taxpayers can avoid going to jail by paying the penalty. However, for this it will be very important to get the approval of the tax authorities.
This rule was made in 2024-
A provision for jail sentence has been made in the Income Tax (Income Tax Ke Niyam) laws for defaulting on certain types of payments. For example, if a taxpayer does not file income tax return or does not deposit TDS, commits tax evasion (Tax default in India) or commits fraud in the books of accounts, then a provision for jail sentence has been made. Finance Minister Nirmala Sitharaman announced this in Budget 2024 to simplify the compounding process.
These are the rules regarding compounding charges-
After this, CBDT issued new guidelines (Income Tax New Guidelines) on October 17, 2024. Compounding is a mechanism, in which the defaulter is given the option to avoid legal proceedings after paying the compounding charges. Tax Authorities of India determine the compounding charges. CBDT has now presented a clarification in this regard.
These rules have been made regarding compounding request-
-Compounding has been allowed for all violations.
– Instead of a single compounding request, more than one application has been allowed. –
36 months time has been given to file a compounding application.
– Offenses under sections 275A and 276B have also been made compoundable.
This much application fee will have to be paid for compounding request-
However, they may have to pay a heavy price for this. The application fee for a single compounding request has been fixed at up to Rs 25,000. The fee for a consolidated application has been fixed at up to Rs 50,000. This fee (Fees for Single Compounding) is going to be non-refundable. However, it can be adjusted with the final compounding charge fixed by the authorities.
The purpose of the government’s steps-
Due to this change in the rules, businesses and individual taxpayers (Latest Update For Taxpayers) have got a lot of relief. They no longer fear legal action and they themselves are going to show interest in tax compliance. This step is going to be a part of that effort of the government (Government Latest Update). Under this, it is going to make the tax rules easier for the taxpayers.
Default cases can be settled-
Now taxpayers can settle their previous default cases (Tax Default rules in India). They can focus on tax compliance without fear of legal action. However, it is going to be very important for taxpayers to follow the tax rules (New Tax Rules) properly. Due to this, they will not have to face unnecessary penalties.
