Income Tax Department Archives - Vizag One

Beware: Excessive UPI Transactions Could Trigger Income Tax Notices

Our Vizag — Sat, 16 Nov 2024 01:59:32 +0000

In recent years, the use of Unified Payments Interface (UPI) apps such as GooglePay, PhonePe, and Paytm has surged across India, revolutionizing the way digital payments are made. Gone are the days when one had to visit a bank to transfer money or deposit cash. Today, with a few taps on the smartphone, transactions are completed within seconds. This ease of use has made UPI apps incredibly popular for everyday financial transactions.

However, as the volume of digital transactions increases, financial experts caution that excessive use of UPI could bring individuals under the radar of the Income Tax Department. The department is closely monitoring large-scale UPI transactions, especially those involving significant deposits and withdrawals in bank accounts.

The Income Tax authorities have set limits on the amount of money that can be deposited or withdrawn without attracting their attention. For instance, if there are large amounts deposited into or withdrawn from a bank account beyond a certain threshold, it may trigger scrutiny. In particular, if the annual deposit in a savings account exceeds Rs. 10 lakh, the transaction details are flagged and reported to the Income Tax Department.

To track such transactions, the Income Tax Department is leveraging artificial intelligence and advanced data analytics. These technologies help authorities identify discrepancies in transaction patterns and ensure that taxpayers’ income declarations match their financial activity.

Under Section 285 BA of the Income Tax Act 1961, there are clear restrictions regarding the deposit of cash into bank accounts. The department will issue notices to individuals whose transactions do not align with their income tax returns, especially when the source of funds is not explained or is inconsistent with the declared income.

This means that excessive UPI transactions or unexplained large deposits could lead to tax notices, penalties, and a thorough investigation by the Income Tax Department. As a result, individuals engaging in high volumes of transactions should ensure that their financial activities are in line with their reported income to avoid unnecessary legal trouble.

The post Beware: Excessive UPI Transactions Could Trigger Income Tax Notices appeared first on Vizag One.

Understanding Income Tax Filing and Refunds in India: A Complete Guide for Financial Year 2023-2024

Our Vizag — Mon, 09 Sep 2024 01:39:00 +0000

In India, income tax is levied on those who earn income above certain amounts. Accordingly, the last date for income tax filing for the financial year 2023-2024 is July 31. Although the deadline for income tax filing has been extended, no deadline has been extended. The Income Tax Department has clarified that the income tax payers should pay by July 31. Many people ended up paying income tax after this announcement by the Income Tax Department. Now many people are eagerly waiting to know when the Income Tax Refund will be available. If you still haven’t received your income tax refund, make a refund request. Here’s a step-by-step guide to help you through the process:

Go to the Income Tax Department website
Navigate to the service menu and click on “refund reissue”
Select a reason for making the refund request
Choose the bank account where you want to receive the refund
Verify the selected bank account if it’s not already verified
Proceed for verification and select an e-verification method (Aadhaar OTP, EVC, DSC)
Receive an SMS with Transaction ID
To check the refund request status, visit the service request section after submitting the refund request using the above method

The post Understanding Income Tax Filing and Refunds in India: A Complete Guide for Financial Year 2023-2024 appeared first on Vizag One.

Streamlining PAN Card Application Process: The Rise of E-PAN

Our Vizag — Sun, 08 Sep 2024 00:25:21 +0000

The PAN Card, issued by the Income Tax Department, serves as a crucial identification document in India. Comprising a unique combination of ten digits and letters, the PAN card plays a pivotal role in financial transactions, akin to the Aadhaar card’s significance in identity verification.

Traditionally, obtaining a physical PAN card involved a time-consuming process encompassing printing, postage, and manual handling. Urgent requirements for the card often posed challenges due to these procedural delays. To address this issue, the introduction of the e-PAN system revolutionized the application process, enabling swift digital access to PAN cards.

In the digital era, the importance of PAN cards has escalated, particularly with the advent of digital banking. Individuals need a PAN card to open bank accounts and conduct various financial transactions. For income tax purposes, strict adherence to utilizing the PAN card is essential to avail tax benefits.

The e-PAN facility offers a seamless, paperless application process, requiring only a valid Aadhaar number and a linked mobile number. Applicants can instantly receive their digitally signed e-PAN in PDF format, free of cost. This electronically signed PAN card, derived from e-KYC data sourced from Aadhaar, serves as a legally valid document for filing tax returns, financial transactions, and KYC requirements.

Individual taxpayers can swiftly access the e-PAN service by visiting the Income Tax Department’s e-filing portal. By following a few simple steps, including entering their Aadhaar number, verifying OTP, and submitting the application, users can obtain their e-PAN within minutes. The receipt number and Acknowledgment ID provided post-submission serve as crucial references for future correspondence.

The post Streamlining PAN Card Application Process: The Rise of E-PAN appeared first on Vizag One.