FourV Update-EPFO: New updates! Big relief to pensioners!

15000 limit is going to be removed!

Pension Update: There is great news for pensioners. If you are also a government employee, then a big update regarding pension has come out. According to the new update, the pension of government employees is going to increase soon. The government is now going to increase the limit of pension.

Pension will increase manifold

Let us tell you that the matter of abolishing this salary limit of Employees’ Provident Fund Organization is going on in the Supreme Court. Along with this, the calculation of pension in EPFO can also be done on the previous salary i.e. higher salary category. After this decision of EPFO, there will be a bumper increase in the pension received by the employees. With this decision, the employees will get many times more benefits of pension.

Hearing was held in August

Let us tell you that on August 12 last year, the Supreme Court had adjourned the hearing of a batch of petitions filed by Union of India and EPFO, which said that the pension of the employees cannot be limited. The hearing of these cases is going on in the court.

How much is the maximum pension now?

Employed people are members of the Employees’ Provident Fund Organisation, who are also considered members of the EPS. All employees contribute 12% of their salary to EPF. Along with this, the employee gets the same amount from the company and 8.33 percent of it also goes to the Employees’ Pension Scheme. Talking about the maximum pensionable salary at this time, it is Rs 15,000.

Pension is available after the age of 58 years.

Let us tell you that any employee gets the benefit of pension after 58 years. For this, it is mandatory for the employees to work for at least 10 years. Along with this, tell that employees who contribute to EPF are also eligible for EPS.

There is also a demand for fixing the date of pension.

Along with this, recently many complaints have been received from the pensioners, in which it has been said that people have to wait a long time for their pension. For this, the Employees’ Provident Fund Organization has decided to fix the date of pension.

Income Tax Exemption: Big relief for taxpayers!

New order issued regarding tax exemption, These people will get exemption of Rs 1.5 crore in tax.

Recently, while pointing out the tax exemption given to these people, the government said that they will get a rebate of at least one and a half crore rupees, which will benefit them a lot. Let’s know the whole news in detail.

Economic think-tank GTRI said that the GST Council should also think about raising the tax exemption limit to Rs 1.5 crore per annum, as well as doing away with the need for state-wise registration. The Global Trade Research Initiative (GTRI) said in a statement that the GST Council, which is the policy making body for GST, should now focus on the need to maximize benefits by simplifying tax compliance. For this, he has also suggested seven reforms.

GST

Among these suggestions, the proposal to give GST exemption to firms with an annual turnover of up to Rs 1.5 crore is the most important. GTRI said that doing this will prove to be a game-changer for the country’s micro, small and medium units and they will be able to give new employment and accelerate growth. At present, only product firms with an annual turnover of less than Rs 40 lakh are exempted from GST registration. On the other hand, in case of service firms, this scope is limited to Rs 20 lakh turnover.

GST rate

GTRI said, “Of the total registered firms, the number of firms with an annual turnover of less than Rs 1.5 crore is about 84 percent. But their share in the total tax collected is less than seven percent. If the tax exemption limit is increased to Rs 1.5 crore, If it goes, the burden on the GST system will come down and they will have to deal with less than 23 lakh taxpayers.”

GST Network

There are more than 1.4 crore firms registered on the GST network. Thus it is the largest global forum on indirect taxes. GTRI said that by reducing the burden on the GST network, the concept of matching bills and receipts will be implemented and the problem of fake bills and tax evasion will also go away to a great extent. The gains from this would far outweigh the seven per cent tax loss incurred by excluding firms with a turnover of up to Rs 1.5 crore.

GST Number

Along with this, the think tank has requested the GST Council to look into eliminating the need for state-wise registration. At present, if a company does business in ten states, then it will have to take GST number everywhere. This makes it difficult for them to take input tax credit.

How to Use Instagram: From DigiHunter Beginner’s Guide.

Over the past few years, Instagram has seen exponential growth — from one million users at its inception to over one billion in 2022.

If you’re interested in getting an Instagram account, or just created one but aren’t sure how to use it, you’re in luck. Here, we’re going to cover all the basics, so you can learn why Instagram is the top social media platform for engagement today.

It’s hard to remember a time before Instagram. At one time, “Do it for the ‘gram” was a common saying, which meant, essentially, “Do something so we can take a picture and post it to Instagram.”

Since then, Instagram has placed a larger and heavier emphasis on video. So you no longer hear the phrase “Do it for the ‘gram.” I bet, though, that a second version of the phrase will soon follow. (Maybe “Do it for reel?”)

“If you’re not part of the one billion users on Instagram, you might want to reconsider. The app is a great chance to engage with top brands and stay a part of friends’ lives. When I want to see how my college friends are doing, I don’t check Facebook, I check Instagram. Plus, you can follow your favorite celebrities or political figures to see candid photos of their everyday lives.”

“Additionally, it’s a phenomenal platform for investigating what other brands are doing — for instance, Nike uses the Instagram Stories’ feature to promote inspirational athlete stories you won’t find anywhere else.”

“If you’re ready to sign up for Instagram, follow these steps below: Go to the Instagram site on your desktop, or download the Instagram app from the App Store (iPhone) or Google Play Store (Android).If you’re on desktop, click “Log in with Facebook”, or fill in the form with your mobile number or email, name, username, and password. Then click “Sign up”. On Android, click “Sign Up With Email or Phone Number”. On iPhone, select “Sign Up”. Enter your email address or phone number, then click “Next”. Alternatively, you can sign up with your Facebook account. Once you’ve filled out your username and password, you will be instructed to fill out your profile info. Then, tap “Done”. If you register with Facebook, you’ll need to log into your Facebook account if you’re currently logged out.”

“How Do Instagram Notifications Work?

When your account is created, you’ll want to adjust your notifications so you only receive the information you want. For instance, you can choose to receive notifications when you get likes from everyone — but, alternatively, you might decide to only receive notifications when you get a like from someone you follow. Or, you might turn off notifications for likes altogether. You can adjust notifications to “Off”, “From People I Follow”, or “From Everyone”, for the following categories — Comments, Comment Likes, Likes and Comments on Photos of You, Follower Requests, Accepted Follow Requests, Friends on Instagram, Instagram Direct, Photos of You, Reminders, First Posts and Stories, Product Announcements, View Counts, Support Requests, Live Videos, Mentions in Bio, IGTV Video Updates, and Video Chats. If you’re overwhelmed by that list, I get it — I am, too. If you’re unsure what notifications you want to receive, you might start with your notifications on “From Everyone”, and if certain notifications begin to annoy you, you can turn them off later.”

TDS credit is to be allowed to employee even if Employer not deposited TDS : High Court – FourV Update.

HIGH COURT OF GUJARAT

Milan Arvindbhai Patel

v.

Assistant Commissioner of Income tax

MS. SONIA GOKANI, ACTG., C.J.
AND SANDEEP N. BHATT, J.

R/SPECIAL CIVIL APPLICATION NO. 13863 OF 2022

FEBRUARY 13, 2023

Darshan B. Gandhi and S.P. Majmudar for the Petitioner. Nikunt K. Raval for the Respondent.

ORDER

MS. Sonia Gokani, Actg., CJ. – The petitioner is an individual, seeking to challenge the action under Article 226 of the Constitution of India of cancelling the outstanding demand as reflected on income tax portal for the Assessment Year 2010-11, 2011-12 and 2012-13 and to quash the recovery notices dated 14-2-2020, dated 15-2-2020 and dated 14-2-2020 for the respectively assessment years, for recovering the unpaid TDS amount of the employer of the petitioner i.e. Kingfisher Airlines as well as seeking the refund of an amount which is adjusted against the outstanding demand.

2. As averred, the petitioner is a pilot working with Indigo Airlines since 2013. During the Assessment Years 2010-11 to 2012-13, he was working with Kingfisher Airlines.

3. The petitioner filed his return of income under Section 139 of the Income-tax Act (‘the Act’ for short) for AY 2010-11, 2011-12 and 2012-13.

4. The notice was received from the office of the Assessing Officers on 19-11-2013 and 21-8-2014 seeking recovery of outstanding demand of Rs. 19,40,707/- for Assessment Year 2011-12 and further notice of 3-3-2015 recovery of 25,12,913/- for Assessment Year 2012-13. In fact, the petitioner, as averred, is eligible for the refund of Rs.45,570/- for the AY 2012-13.

5. The department has issued recovery notices. The petitioner approached his employer – Kingfisher Airlines, requesting to furnish the certificate in relation to the TDS amount deducted. Certificate was given along with the computation of salary on 19-11-2015 stating the Form-16 is under process and filing of annual TDS return will be completed shortly.

6. The summary of income tax return and refund due to the petitioner is given below.

Sl. No.	Asst. Year	Tax Payable’	Tax paid by TDS	Advance Tax	Self Assessment Tax	Refund as per ITR
1	2011-12	16,04,286	15,84,858	65,000	NA	45,750
2	2012-13	16,93,965	17,31,599	NA	NA	37,630
3	2013-14	17,17,358	18,60,410	NA	NA	1,43,050
4	2014-15	19,02,072	20,07,358	NA	NA	1,05,290
5	2015-16	21,55,917	22,03,117	NA	NA	47,200
6	2017-18	29,86,210	27,94,988	NA	1,91,220	NA
7	2018-19	32,60,344	27,81,751	2,70,000	2,08,590	NA
8	2019-20	30,09,273	30,14,452	NA	NA	23,150
9	2020-21	29,22,787	30,14,452	NA	NA	28,000
10	2021-22	13,42,951	14,99,507	NA	NA	1,56,560
Total Refund due						5,86,630

7. According to the petitioner, the promoter of Kingfisher Airlines – Mr. Vijay Malya got bankrupt, on 11-3-2016, the Government of India – Ministry of Finance circulated office memorandum amongst all the Income-tax Departmental Officers directing them not to raise any demand of taxes on account of mismatch of credit of TDS due to non-payment of TDS by the Kingfisher Airlines. Therefore, the present petition, with the following main prayers.

“10(A) Your Lordships may be pleased to issue a writ of certiorari/mandamus or writ in the nature of certiorari/mandamus quashing the impugned notices of recovery dated 14-2-2020 and 15-2-2020 for the Assessment Year 2010-11, 2011-12 and 2012-13 at Annexure – D (Colly.) and cancel the outstanding demand as reflected on Income-tax Portal for the Assessment Year 2011-12 and 2012-13 at Annexure – F;

(B) Your Lordships may be pleased to issue a writ of mandamus or writ in the nature of mandamus directing the respondent Assessing Officer to return the amount of Rs. 5,88,820/-, i.e. the amount of refund which is already adjusted against the amount due as per chart mentioned in para 3.4, with interest rate of 9% p.a. within a period of 6 weeks from the date of receipt of the copy of the judgment;

(C) During the pendency and final disposal of the present petition, Your Lordships may be pleased to stay the operation and implementation of the impugned notices of recovery dated 14-2-2020 and 15-2-2020 for the Assessment Year 2010-11, 2011-12 and 2012-13 at Annexure – D (Colly.) as well as direct the respondent not to take corrective action against the outstanding demand as reflected on Income-tax Portal for the Assessment Year 2011-12 and 2012-13 at Annexure – F;”

8. The affidavit-in-reply of the respondent disputes that the demand of refund on the ground that the credit of TDS of an assessee after granting the said TDS amount matched with e-TDS return filed by the tax deductor, would be otherwise automatic. However, in the case of petitioner, the system of Income-tax Department is not allowing any credit of TDS for AY 2010-11, 2011-12 and 2012-13 as per his claim. His return was processed under section 143(1) of the Act without grant of credit of TDS and therefore, the demand has been raised for the respective assessment years, which includes tax and interest.

According to respondent, the online credit of TDS claims for these years is not possible due to the reasons that credit of TDS is not shown by e-TDS data because of the system of the Income-tax Department.

9. On hearing the learned advocate Mr. Darshan Gandhi for the petitioner and learned Senior Standing Counsel Mr. Nikunt Raval for the respondent – Authorities, this Court notices the Office Memorandum dated 11-3-2016 shows the non-deposit of tax deducted at source by the deductor – recovery of demand against the deductee assessee. The Board issued the direction to the Filed Officer that in case an assessee whose tax has been deducted at source but is not deposited to the Government’s account by the deductor, the assessee shall not be called upon to pay the demand to the extent tax has been deducted from his income. It was also specified that section 205 of the I.T. Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch in such situations cannot be enforced effectively.

As some of such directions of the Board were not being strictly followed, the Board had reiterated the instructions contained in its letter dated 1-6-2015, directing the Assessing Officers not to enforce demands created on account of mismatch of credit due to non-payment of TDS amount to the credit of the Government by the deductor.

10. Here is also the case where the petitioner is a pilot by profession and was an employee of Kingfisher Airlines, which has deducted the TDS from his salary for AY 2010-11, 2011-12 and 2012-13. It is not in dispute that such amount had not been deposited by the Airlines to the Central Government’s account and therefore, when the credit was claimed by the petitioner, obviously, the same was not given. Hence, the demand was raised with interest. The petitioner seeks to challenge this, relying on the decision of this Court in case of Kartik Vijaysinh Sonavane v. Dy. CIT [2021] , wherein similarly situated assessee, the Court allowed the petition, directed the department not to deny the benefit of tax deducted at source by the employer during the relevant financial year. Relevant findings and observations of the same are necessary to reproduce here, which are as under :

“7. The factual matrix presented before this Court has not been disputed. It is also not being disputed that the case is no longer res integra and is covered by the decision of this very Court rendered in case of Devarsh Pravinbhai Patel v. Assistant Commissioner of Income-tax Circle 5(1)(1) [SCA No. 12965/2018 with SCA No. 12966/2018, decided on 24-9-2018] where too, the petitioner was an employee of the Kingfisher Airlines and worked as a pilot. In his case also the TDS on the salary made to the petitioner had not been deposited. It is only when the department raised the tax demand with interest and initiated the actions of the recovery that this Court was approached. Relying on the decision of the Bombay High Court rendered in case of Assistant Commissioner of Income-tax and Others v. Om Prakash Gattani [(2000) 242 ITR 638], this Court allowed the same. Vital would be to reproduce the relevant findings and observations.

“4. The issue is no longer res integra. The Division Bench of this Court in case of Sumit Devendra Rajani (supra) examined the statutory provisions and in particular Section 205 of the Income-tax Act, 1961. The Court concurred with the view of the Bombay High Court in case of Asst. CIT v. Om Prakash Gattani, reported in [2000] 242 ITR 638 and observed as under –

10. We are in complete agreement with the view taken by the Bombay High Court and Gauhati High Court. Applying the aforesaid two decisions of the Bombay High Court as well as Gauhati High Court, the facts of the case on hand and even considering section 205 of the Act action of the respondent in not giving the credit of the tax deducted at source for which form no. 16 A have been produced by the assessee – deductee and consequently impugned demand notice issued under section 221(1) of the Act cannot be sustained. Concerned respondent therefore, is required to be directed to give credit of tax deducted at source to the assessee deductee of the amount for which form no. 16 A have been produced.

11. In view of the above and for the reasons stated petition succeeds. It is held that the petitioner assessee deductee is entitled to credit of the tax deducted at source with respect to amount of TDS for which Form No. 16A issued by the employer deductor – M/s. Amar Remedies Limited has been produced and consequently department is directed to give credit of tax deducted at source to the petitioner assessee – deductee to the extent form no. 16 A issued by the deductor have been issued. Consequently, the impugned demand notice dated 6-1-2012 (Annexure D) is quashed and set aside. However, it is clarified and observed that if the department is of the opinion deductor has not deposited the said amount of tax deducted at source, it will always been open for the department to recover the same from the deductor. Rule is made absolutely to the aforesaid extent. In the facts and circumstances of the case, there shall be no order as to costs.”

5. Facts in both case are very similar. Under the circumstances, by allowing these petitions we hold that the Department cannot deny the benefit of tax deducted at source by the employer of the petitioner during the relevant financial years. Credit of such tax would be given to the petitioner for the respective years. If there has been any recovery or adjustment out of the refunds of the later years, the same shall be returned to the petitioner with statutory interest.”

8. In case of Om Prakash Gattani (supra) Gauhati High Court was dealing with the TDS not deposited of prize money payable to the petitioner. It held and observed thus:-

“13. From a perusal of the provisions quoted above relating to the deduction of tax at source in the matters relating to prize money of lotteries, it is evident that the person responsible to make the payment to the assessee is under the statutory obligation to deduct the amount at source. After deduction of the amount he is required to deposit the same to the credit of the Central Government and to issue a certificate of deduction. So far as credit for the amount deducted is concerned, it is to be given on the deposit being made to the credit of the Central Government on production of a certificate furnished under section 203 of the Income-tax Act. On payment of the amount to the credit of the Central Government, it would be treated as payment of tax.

14. So far the assessee is concerned, he is not supposed to do anything in the whole transaction except that he is to accept the payment of the reduced amount from which is deducted income-tax at source. The responsibility to deposit the amount deducted at source as tax is that of the person who is responsible to deduct the tax at source. On the amount being deducted the assessee only gets a certificate to that effect by the person responsible to deduct the tax. In a case where the amount has been deducted by the person responsible to deduct the amount under the statutory provisions, the assessee has no control over the matter. In case of default in making over the amount to the account of the Central Government, it is obviously the person responsible to deduct or the person who has made the deduction who is held responsible for the same. The responsibility of such person is to the extent that he has to be deemed to be an assessee in default in respect of the tax. He may be deemed to be an asses see in default not only in cases where after deduction he does not make over the amount to the Central Government but also in cases where there is failure on his part to deduct the amount at source. This responsibility has been fastened upon him under section 201 of the Income-tax Act. It is, of course, without prejudice to any other consequences which he or it may incur. Presently we are not concerned with the case where the person responsible to make the deductions has not deducted the amount at all. It may or may not fall in a different category from one where the amount has been deducted and not made over to the Central Government. We are concerned with the latter category of cases. As indicated earlier, on the facts it is nobody’s case that the amount was actually not deducted at source by Chandra Agencies. What seems to be in dispute is the deposit of the said amount in the account of the Central Government. The Income-tax Department seems to have made enquiries about the exact date of payment to the Central Government which Chandra Agencies could not furnish on the ground that the papers were forwarded to the chairman of Vaibhavshali Bumper. In such a category of cases we feel that the amount of tax can be recovered by the Income-tax Department treating the person responsible to deduct tax at source as an assessee in default in respect of the tax. It would not be possible to proceed to recover the amount of tax from the assessee. The assessee cannot be doubly saddled with the tax liability. Deduction of tax at source is only one of the modes of recovery of tax. Once this mode is adopted and by virtue of the statutory provisions the person responsible to deduct the tax at source deducts the amount, only that mode should be pursued for the purpose of recovery of tax liability and the assessee should not be subjected to other modes of recovery of tax by recovering the amount once again to satisfy the tax liability. It is, therefore, provided under section 201 of the Income-tax Act that the person responsible to deduct the tax at source would be deemed to be an assessee in default in case he deducts the amount and fails to deposit it in the Government treasury. As observed earlier, the assessee has no control over such person who is responsible to deduct the income-tax at source, but fails to deposit the same in the Government treasury. In this light of the matter, in our view, the notices issued under section 226(3) of the Income-tax Act to the bankers of the petitioner-respondent to satisfy the tax liability from the bank account of the petitioner-respondent are illegal. It is not that the Income-tax Department was helpless in the matter. The person responsible to deduct the tax at source would move into the shoes of the assessee and he would be deemed to be an assessee in default. Whatever process or coercive measures are permissible under the law would only be taken against such person and not the assessee.

15. However, the position as indicated above would not mean that mere deduction of the tax amount at source would amount to total discharge of the tax liability so long as the amount deducted is not deposited in the coffers of the Central Government. It is for this reason Section 199 of the Income-tax Act makes it clear that credit for tax deducted would be given when the amount is deducted and paid to the Central Government and a certificate of deduction is produced as furnished under section 203 of the Income-tax Act. It is obvious that unless the amount is paid to the Central Government, the tax liability is not discharged, nor can it be said that the assessee has made the payment of the tax amount payable to the Government. We find no force in the submission made on behalf of the petitioner-respondent that on mere deduction of the amount at source, credit for tax deducted must be given and it cannot be withheld even though the person responsible to deduct the tax at source has not made it over to the Central Government. In our view, if that contention is accepted that credit for tax deducted has to be given on mere deduction of the amount at source, in that event, perhaps, there would be no legal justification to treat the person responsible to deduct the amount at source as an assessee in default in respect of the tax. Once credit on account of payment of tax is given, the tax liability will stand discharged. Any step to recover the amount of tax can be taken only in case the tax liability is not discharged and it still subsists. In this view of the matter, Shri K. P. Sarma, learned counsel appearing for the Revenue, has rightly defended the note appended by the Assessing Officer in the order of assessment making it clear that credit for the amount deducted was not being given and that will be given only when evidence as to actual payment of the amount to the Central Government is furnished. But this position would not legally justify initiation of recovery proceedings against the assessee from whose income tax has been deducted at source, but the person responsible to deduct the tax fails to deposit the same in the Government treasury. The statutory scheme evolved to employ this mode of recovery of tax at source also points to the same position and in our view rightly. Otherwise a taxpayer from whose income tax is liable to be deducted at source would be exposed to a great vulnerable position. If some unscrupulous persons responsible to deduct the tax at source, after deducting the amount do not deposit the amount in the Government treasury, such persons should be saddled with the tax liability. Therefore, under section 201 of the Income-tax Act it has been aptly provided that the person responsible to deduct the tax would be deemed to be an assessee in default so that he can be proceeded against for recovery of the amount instead of the assessee who has already parted with the amount, but due to some commission or omission on the part of the person responsible to deduct the amount at source over whose activity he has no control, he may not be subjected to double payment of tax and brunt of arduous recovery proceeding. The provisions as contained in section 201 of the Act provide a kind of protection to the assessee where tax liability as standing against him is not yet discharged and credit for the amount deducted cannot be given in terms of section 199 of the Income-tax Act.

16. A perusal of section 205 of the Income-tax Act clarifies the position where it provides that where tax is deductible at source, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income. What is noticeable in this provision is that its applicability is not dependent upon the credit for tax deducted being given under section 199 of the Income-tax Act. What is necessary for applicability of this provision is that the amount has been deducted from the income. In case where the amount has been deducted but not paid to the Central Government that eventuality is taken care of by Section 201 of the Income-tax Act. Learned counsel for the appellant could not show that under the law it may be permissible to proceed against the assessee even after deduction of the tax at source, nor learned counsel for the petitioner-respondent could persuade us to hold that merely by deduction of tax at source, credit for deduction of tax at source has to be given even though the amount may not have been made over to the Government treasury. The reason for this has already been explained by us in the discussion held in the earlier part of this judgment as the mere deduction of tax at source would not close the chapter of tax liability unless it is deposited in the Government treasury.”

9. The facts being almost identical, no separate reasoning are desirable and the petition is being ALLOWED. The department is precluded from denying the benefit of the tax deducted at source by the employer during the relevant financial years to the petitioner.

10. It is given to understand by learned Senior Standing Counsel Mr. Varun Patel that the proceedings have been initiated against the employer.

11. The credit of the tax shall be given to the petitioner and if in the interregnum any recovery or adjustment is made by the respondent, the petitioner shall be entitled to the refund of the same, with the statutory interest, within eight (8) weeks from the date of receipt of copy of this order.

12. Petition is accordingly disposed of.”

11. The above ratio would have direct applicability in the instant case. Reference of section 205 of the I.T. Act is to the effect where it provides that the tax when is deductible at source, assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted form that income. Its applicability is not dependent upon the credit for tax deducted being given under section 199 of the I.T. Act.

12. Facts being identical, petition is allowed. The department shall not be denying the benefit of tax deducted at source by the employer during the relevant financial years to the petitioner. The credit of the tax shall be given to the petitioner and if in the interregnum, any recovery or adjustment is made by the department, the petitioner shall be entitled to the refund, with the statutory interest, within eight (08) weeks from the date of receipt of copy of this order.

13. Petition is accordingly disposed off.

MCA issues new rules on voluntary exit of companies-FourV Update

New Delhi: Companies keen to exit their business for various economic reasons can now hope for quick regulatory clearance with the government operationalising the newly set up Centre for Processing Accelerated Corporate Exit (CPACE).

The Ministry of Corporate Affairs on Monday notified the rules authorising CPACE to handle this work, taking over the task from RoCs across the country. CPACE is set up at the Indian Institute of Corporate Affairs, an institution attached to the ministry.

The amended rules for removal of companies from the official register will be effective 1 May, the ministry said while also bringing out the forms for voluntary closure.

The move of shifting voluntary closure of companies to a centralised agency is part of a revamp of the approval process for various corporate filings aimed at uniform and quick decision-making process.

The ministry also replaced three forms that are related to the process of striking off the names of companies while giving the all-India jurisdiction to CPACE for voluntary closure of companies.

The forms entail some changes, including provision for disclosing pending litigation, explained Virender Bhasin, Executive Director, Entity Setup and Management at Nexdigm, a consultancy.

“The changes are welcome and it will accelerate the pace of strike applications pending with respective ROCs at a faster pace after introduction of centralized processing centre for exit. Also, some modifications in the form will provide better transparency resulting in good governance,” said Bhasin.

Companies chose to go for voluntary closure for various economic reasons including unviability of the business or changed circumstances. For closure, the companies should not have any unmet liability. Voluntary closure is different from government’s action of removing a company from the register for defaulting on filing statutory documents for two consecutive years, although most such defaulting companies may also be defunct.

CRN full form in Income Tax

The CRN full form is Challan Reference Number.

Why does taxpayer need to create a Challan (CRN)?

Resolution:

In e-Pay Tax service at e-Filing portal, it is mandatory to generate the Challan for the payment of direct taxes. Every such generated Challan will have a unique Challan Reference Number (CRN) associated with it.

Who can generate a Challan (CRN)?

Resolution:

Any taxpayer (including tax deductors & collectors) required to make direct tax payment and willing to use e-Pay Tax service at the e-Filing Portal can generate Challan (CRN). Challan (CRN) can also be generated via Post-Login/PreLogin option available in the service.

What are the various modes available for making payment after generation of Challan (CRN)?

Resolution:

After generation of Challan (CRN), following modes are available for making tax payment:

Net Banking (of selected Authorised Banks)
Debit Card (of selected Authorised Banks)
Pay at Bank Counter (Over the Counter Payment at the Branches of selected Authorised Banks)
RTGS / NEFT (through any bank having such facility)
Payment Gateway (using sub-payment modes as Net Banking, Debit Card, Credit Card, and UPI)

* RTGS/NEFT and Payment Gateway are newly added payment methods as an upgradation in the e-Pay Tax service on the e-Filing portal.

What will happen if no payment is initiated after creation of Challan (CRN)?

Resolution:

A partially created Challan remains in the “Saved Drafts” tab unless it is finally generated along with the Challan Reference Number (CRN). After generation of CRN, it moves to “Generated Challan” tab and is valid for 15 days after the date of generation of CRN. Taxpayer may initiate payment against the CRN within this validity period. If no payment is initiated in the said period, CRN will expire, and taxpayer will have to generate a fresh CRN for making the payment.

In case, Challan (CRN) is generated on or after 16th March for the payment of ‘Advance Tax’, then the valid till date is by default set as 31st March of that Financial Year.

What is meant by “Valid Till” date printed on the Challan Form (CRN)?

Resolution:

The “Valid Till” date is the date till which Challan Form (CRN) remains valid for making payment. After the expiry of “Valid Till” date, the status of an unused Challan Form (CRN) is changed to Expired. Example, if a CRN is generated on 1st April, then it will remain valid till 16th April and on 17th April the status of CRN will be changed to Expired, if payment is not initiated against that CRN.

If a taxpayer presents the Payment Instrument to the Authorised Bank on or before the “Valid Till” date while using the ‘Cheque’ as the Pay at Bank mode, the Challan “Valid Till” date will be extended by an additional 90 days.

In case, Challan form (CRN) is generated on or after 16th March for the payment of ‘Advance Tax’, then the valid till date is by default set as 31st March of that Financial Year.

Where can taxpayer view generated Challan (CRN)? Will taxpayer be able to view expired Challans (CRN)?

Resolution:

Taxpayer can view generated Challans (CRN) on the e-Pay Tax page under the “Generated Challans” tab on e-Filing portal post-login. Expired Challan (CRN) will also be available on the e-Pay Tax page under the Generated Challans tab for 30 days from the “Valid Till” date.

Can taxpayer make modifications in the already generated Challan (CRN)?

Resolution:

No. Once a Challan (CRN) is generated, it cannot be modified. However, it can be used to generate a new Challan (CRN) by copying the information from an earlier Challan (CRN).

Does a taxpayer need to select the mode of payment during generation of challan (CRN)?

Resolution:

Yes, the taxpayer has to mandatorily select mode of payment at the generation of challan (CRN).

Can a taxpayer change the mode of tax payment after generating Challan (CRN)?

Resolution:

Once a Challan (CRN) is generated, the taxpayer cannot change the Mode of Payment.

If the taxpayer wants to make tax payment through some other mode, a new Challan (CRN) needs to be generated and the old challan will expire after 15 days.

Create Challan FAQ

1. Why do I need to create a challan?

In order to make any Income Tax payment for an assessment year through the e-Filing portal, you will have to create a challan for the same.

2. Who can create a challan?

Registered or unregistered users (Corporate / Non-Corporate users, ERIs and Representative Assessee) on the e-Filing portal can create a challan.

3. What type of Corporate Tax payments can I make?

You can pay the following under Corporate tax options:

Advance Tax
Self-Assessment Tax
Tax on Regular Assessment
Tax on Distributed Profit of Companies
Tax on Distributed Income to Unit Holders
Surtax
Secondary Adjustment Tax under Section 92CE of Income Tax Act, 1961
Accretion Tax under Section 115TD of Income Tax Act, 1961

4. What type of Income Tax payments can I make?

You can pay the following under Corporate tax options:

Advance Tax
Self-Assessment Tax
Tax on Regular Assessment
Secondary Adjustment Tax under Section 92CE of Income Tax Act, 1961
Accretion Tax under Section 115TD of Income Tax Act, 1961.

5. What fees or other tax payments can I make?

You can pay the following under Fee / Other Payments:

Wealth Tax
Fringe Benefit Tax
Banking Cash Transaction Tax
Interest Tax
Hotel Receipts Tax
Gift Tax
Estate Duty
Expenditure / Other Tax
Appeal Fee
Any Other Fee

GST Number to Professionals doing Work From Home

No Restriction on issuing GST Number to Professionals doing Work From Home.

The Minister of State, Shri Pankaj Chaudhary in the Ministry of Finance in a written reply to a raised in Rajaya Sabha stated, “GST Number provided to Professional Working from Home.”

The question that was raised by Shri Naranbhai J. Rathwa and Shri Rajmani Patel in the Rajaya Sabha:

MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

RAJYA SABHA UNSTARRED

QUESTION No. 1488

ANSWERED ON 14/03/2023

Question: GST Number to Professionals working from home?

1488. Shri Naranbhai J. Rathwa:

Shri Rajmani Patel:

Will the Minister of FINANCE be pleased to state:-

(a) whether it is a fact that Management consultants, Architects and other professionals operating from their homes are not allowed to get GST numbers for working from the residential premises;

(b) if so, the details thereof;

(c) whether it is a fact that post COVID-19 pandemic, most of senior professionals and consultants have started their professional activities under the Work from Home (WFH) concept; and

(d) if so, the steps Government is contemplating to allow all Professionals and Management Consultants to work from home and allot GST numbers?

Replay;

THE MINISTER OF STATE FOR FINANCE

(SHRI PANKAJ CHAUDHARY)

(a) to (c) The Central Goods & Services Tax Act, 2017 does not restrict GST registration of Management consultants, Architects and other professionals operating from residential premises, due to covid-19 pandemic or otherwise.

(d) Does not arise in view of above.

5 Strategies to Turn Your Vacation into a Tax Deduction…

One of the benefits of being a business owner is the ability to take tax deductions for business-related expenses. As you plan for your next vacation, make sure you take advantage of all the tax write-offs that you are legally entitled to, and that includes the wonderful opportunity to save on taxes by turning your vacation into a tax deduction.

So how exactly do you turn your vacation into a legitimate tax deduction? The easiest way to demonstrate this is to go over a specific example of just how this can be done.

As an example, let’s take Tim, who owns his own business. Tim decided he wanted to take a two-week trip around the United States. So he did—and was able to legally deduct every dime that he spent on his “vacation.” Here’s how he did it.

How to make your next vacation a tax write-off

1. Make all your business appointments before you leave for your trip

Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.

Wrong.

You must have at least one business appointment before you leave in order to establish the “prior set business purpose” required by the IRS. Keeping this in mind, before Tim left for his trip he set up appointments with business colleagues in the various cities that he planned to visit.

Let’s say Tim is a manufacturer of green office products looking to expand his business and distribute more products. One possible way to establish business contacts—if he doesn’t already have them—is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.

Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept his trip for business.

Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence, along with noting in his diary what appointments he will have.

2. Make sure your trip is all “business travel”

In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100% deductible as long as your trip is business related, you are traveling away from your regular place of business longer than an ordinary day’s work, and you need to sleep or rest to meet the demands of your work while away from home.

Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.

Tip: Remember: You don’t need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.

3. Deduct all on-the-road expenses for each day you’re away

For every day you are on business travel, you can deduct 100% of lodging, tips, car rentals, and 50% of your food. Tim spends three days meeting with potential distributors. If he spends Rs.4093 a day for food, he can deduct 50% of this amount, or Rs.2,046 a day.

Example: If Tim pays Rs.491 for drinks on the plane, Rs.569 for breakfast, Rs.982 for lunch, and Rs.4093 for dinner, he does not need receipts for anything since each item was under Rs.6140.

Tip: The IRS doesn’t require receipts for travel expense under Rs. 6140 per expense—except for lodging.

Why a Domain Name Is Important for Your Business…..!

A domain name adds credibility to your business

Having your own domain name makes your company look professional. If you publish your site through an ISP or a free web-hosting site, you’ll end up with a URL such as www.yourisp.com/-yourbusiness. This generic address does not inspire confidence in a customer like a www.yourcompany.com domain name does.

As there are some less than reputable sites on the web, you want to do what you can to prove that your small business is one that customers can trust and that deserves their money. If you’re not willing to pay the money to register an appropriate domain name, why would consumers think you’d put any effort into creating valuable products or services?

A domain name builds your brand.

More than anything else, a domain name can increase awareness of your brand. If your domain name matches your company name, it reinforces your brand, making it easier for customers to remember and return. It will also be easier to win business via word of mouth because customers will remember your name and pass it along to friends.

The right domain name can attract walk-in business.

If you decide to register a domain name that matches the concept of your business (instead of your exact business name), you might draw web surfers in search of that topic. For instance, a hardware store that registered Hammers.com might get visitors looking for hammers on the internet. Also, although search engine results are hard to predict, Hammers.com could show up more frequently in search results when someone searches for information about hammers.

The bottom line is that a good domain name can go a long way toward generating traffic to your website and building your reputation. That, in turn, will result in more customers and better sales.

Click here to see a sample Domain Name Purchase Agreement.

GST Notifications issued on 31st March 2023 : Download

GST Notifications issued on 31st March 2023

No. 02/2023–CENTRAL TAX

No. 03/2023–CENTRAL TAX

No. 04/2023–CENTRAL TAX

No. 05/2023–CENTRAL TAX

No. 06/2023–CENTRAL TAX

No. 07/2023–CENTRAL TAX

No. 08/2023–CENTRAL TAX

No. 09/2023–CENTRAL TAX

Download above Notifications Click here

TDS Filing Guide for Businesses in India (2026 Complete Guide)

Tax Deducted at Source (TDS) is a crucial compliance requirement for businesses in India. Every business making specified payments must deduct TDS and file returns within the prescribed timelines.

Failure to comply can result in penalties, interest, and legal complications. This guide explains the TDS filing process for businesses step-by-step, along with due dates, forms, and best practices.

What is TDS?

TDS (Tax Deducted at Source) is a system where tax is deducted at the time of making certain payments such as:

Salaries
Contractor payments
Professional fees
Rent
Interest

The deducted amount is deposited with the government on behalf of the payee.

Who Needs to File TDS Returns?

Businesses required to deduct TDS must also file TDS returns.

Applicable for:

✔ Companies
✔ Partnership firms
✔ LLPs
✔ Proprietors (above turnover limits)

👉 For assistance, explore Tax Compliance Services on Digihunter.

Types of TDS Returns

Businesses must file different TDS returns depending on the nature of payment:

Form 24Q – TDS on salary
Form 26Q – TDS on non-salary payments
Form 27Q – TDS for non-residents
Form 27EQ – TCS returns

TDS Filing Due Dates

Quarter	Due Date
Q1 (Apr–Jun)	31 July
Q2 (Jul–Sep)	31 Oct
Q3 (Oct–Dec)	31 Jan
Q4 (Jan–Mar)	31 May

Timely filing is essential to avoid penalties.

👉Step-by-Step TDS Filing Process

Step 1: Deduct TDS

Deduct TDS at applicable rates while making payments.

Step 2: Deposit TDS

Deposit TDS using challan before due date.

Step 3: Prepare TDS Return

Use software or professional services to prepare return.

Step 4: File TDS Return

Submit return through the Income Tax portal.

Step 5: Generate TDS Certificates

Issue:

Form 16 (salary)
Form 16A (non-salary payments)

Penalties for Non-Compliance

Businesses may face:

❌ ₹200 per day for late filing
❌ Interest on late payment
❌ Penalty up to ₹1 lakh
❌ Disallowance of expenses

Key Tips for Businesses

✔ Maintain proper records
✔ Deduct correct TDS rates
✔ File returns before deadlines
✔ Reconcile TDS with books

Income Tax Planning for High Salary Professionals in India (2025 Guide)

Income Tax Deductions You Might Be Missing in India – Save More Tax

Common Mistakes to Avoid

❌ Wrong PAN details
❌ Incorrect TDS rates
❌ Late filing
❌ Not issuing TDS certificates

Conclusion

TDS filing is an essential part of business compliance in India. Following the correct process and timelines ensures smooth operations and avoids penalties.

Professional assistance can simplify TDS filing and ensure accurate compliance.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today

ELSS vs PPF comparison 2026 showing returns risk and tax saving benefits in India

ELSS vs PPF – Which is Better in 2026? (Complete Comparison Guide)

When it comes to tax saving under Section 80C, two of the most popular options are ELSS (Equity Linked Saving Scheme) and PPF (Public Provident Fund). Both offer tax benefits, but they differ significantly in terms of returns, risk, and lock-in period.

In this guide, we compare ELSS vs PPF in 2026 to help you choose the best investment option based on your financial goals.

What is ELSS?

ELSS (Equity Linked Saving Scheme) is a type of mutual fund that invests primarily in equity (stock market).

Key Features:

✔ Tax deduction under Section 80C (up to ₹1.5 lakh)
✔ Lock-in period: 3 years
✔ Market-linked returns (higher potential)
✔ No fixed returns

What is PPF?

PPF (Public Provident Fund) is a government-backed savings scheme offering fixed returns with high safety.

Key Features:

✔ Tax deduction under Section 80C
✔ Lock-in period: 15 years
✔ Fixed interest rate (declared by government)
✔ Risk-free investment

ELSS vs PPF – Key Comparison

Feature	ELSS	PPF
Returns	Market-linked (10–15% potential)	Fixed (around 7–8%)
Risk	High	Very Low
Lock-in	3 Years	15 Years
Liquidity	Moderate	Low
Tax Benefit	Yes (80C)	Yes (80C)
Ideal For	Wealth creation	Safe savings

Which is Better in 2026?

Choose ELSS if:

✔ You want higher returns
✔ You can take moderate to high risk
✔ You prefer shorter lock-in
✔ You want wealth creation

Confused between ELSS and PPF for tax saving?

👉 Get expert investment and tax planning advice through Digihunter to make the right choice.

Tax Benefits of ELSS and PPF

Both investments qualify for deduction under Section 80C (up to ₹1.5 lakh).

Additionally:

ELSS gains are subject to LTCG tax (above exemption limit)
PPF returns are completely tax-free (EEE category)

Expert Recommendation

For most investors, a combination of ELSS and PPF works best:

✔ ELSS for growth
✔ PPF for stability

This balanced approach helps in both tax saving and wealth creation.

Income Tax Deductions You Might Be Missing in India – Save More Tax

Common Mistakes to Avoid

❌ Investing only for tax saving
❌ Ignoring risk tolerance
❌ Not diversifying investments
❌ Withdrawing ELSS early after lock-in

Choose PPF if:

✔ You want guaranteed returns
✔ You prefer long-term safe investment
✔ You want risk-free savings
✔ You are planning retirement corpus

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

Conclusion

Both ELSS and PPF are excellent tax-saving instruments, but the right choice depends on your financial goals, risk appetite, and investment horizon.

Choose ELSS for higher returns and shorter lock-in
Choose PPF for safety and long-term savings

Smart tax planning ensures you get the best of both worlds.

HRA Exemption Calculation Guide (How to Calculate HRA in India 2025)

House Rent Allowance (HRA) is one of the most effective ways for salaried employees to reduce taxable income legally. However, many taxpayers either calculate it incorrectly or fail to claim the full exemption.

In this guide, we explain the HRA exemption calculation step-by-step, formula, examples, and important rules to help you maximize your tax savings.

What is HRA (House Rent Allowance)?

HRA is a component of your salary provided by your employer to cover rental accommodation expenses.

A part of HRA is exempt from income tax under the Income Tax Act, subject to certain conditions.

Who Can Claim HRA Exemption?

You can claim HRA exemption if:

✔ You are a salaried employee
✔ You receive HRA as part of your salary
✔ You live in rented accommodation
✔ You pay rent to the landlord

HRA Exemption Calculation Formula

The minimum of the following three amounts is exempt from tax:

1️⃣ Actual HRA received
2️⃣ 50% of salary (metro cities) / 40% (non-metro cities)
3️⃣ Rent paid – 10% of salary

👉 “Salary” = Basic Salary + Dearness Allowance (if applicable)

Step-by-Step HRA Calculation Example

Example:

Basic Salary: ₹50,000/month
HRA Received: ₹20,000/month
Rent Paid: ₹18,000/month
City: Non-metro

Calculation:

Actual HRA = ₹20,000
40% of Salary = ₹20,000
Rent – 10% Salary = ₹18,000 – ₹5,000 = ₹13,000

👉 Exempt HRA = ₹13,000/month
Remaining HRA is taxable.

Not sure how much HRA exemption you can claim?

👉 Get accurate tax calculation with Digihunter experts and maximize your tax savings.

Important Rules for HRA Exemption

✔ Rent receipts must be maintained
✔ PAN of landlord required if rent exceeds ₹1 lakh/year
✔ Cannot claim HRA if living in own house
✔ HRA and home loan benefits can be claimed together (conditions apply)

HRA for Metro vs Non-Metro Cities

Metro cities (Delhi, Mumbai, Chennai, Kolkata): 50% of salary
Non-metro cities: 40% of salary

Choosing the correct category is important for accurate calculation.

Income Tax Planning for High Salary Professionals in India (2025 Guide)

Can You Claim Both HRA and Home Loan?

Yes, you can claim both if:

You live in rented house
Your owned house is in a different city or rented out

This helps maximize tax benefits.

Common Mistakes to Avoid

❌ Not keeping rent receipts
❌ Incorrect salary calculation
❌ Claiming HRA without paying rent
❌ Not submitting landlord PAN

Avoid these mistakes to prevent tax notices.

Conclusion

HRA exemption is a powerful tool for salaried employees to reduce taxable income and increase savings. By understanding the correct formula and maintaining proper documentation, you can maximize your HRA benefits.

Professional guidance ensures accurate calculation and compliance with tax rules.

Corporate Tax Structure in India 2026

Understanding the corporate tax structure in India 2026 is essential for companies to ensure compliance and optimize tax liabilities. With evolving tax laws and government initiatives, businesses must stay updated to benefit from lower tax rates and incentives.

In this guide, we break down the latest corporate tax rates, regimes, and key provisions every business owner should know.

What is Corporate Tax?

Corporate tax is the tax imposed on the profits earned by companies operating in India. It applies to:

✔ Domestic companies
✔ Foreign companies operating in India

Corporate Tax Rates in India 2026

Domestic Companies

🔹 Standard Tax Rate

25% for companies with turnover up to ₹400 crore
30% for other domestic companies

🔹 Concessional Tax Rate

(Section 115BAA)

Flat 22% tax rate (effective ~25.17% with surcharge & cess)
No exemptions or deductions allowed

🔹 New Manufacturing Companies

(Section 115BAB)

15% tax rate (effective ~17.16%)
Applicable to new manufacturing companies incorporated after October 1, 2019

Foreign Companies

Tax rate: 40%
Additional surcharge and cess applicable

Surcharge and Cess

Companies must also pay:

Surcharge: 7% to 12% depending on income
Health & Education Cess: 4%

Confused about which corporate tax regime is best for your business?

👉 Get expert corporate tax planning with Digihunter and reduce your tax liability legally.

Key Corporate Tax Provisions

Minimum Alternate Tax (MAT)

Applicable to companies under normal tax regime
Rate: 15% of book profits
Not applicable for companies opting Section 115BAA/115BAB

Dividend Distribution Tax (DDT)

DDT is abolished
Dividends are taxed in the hands of shareholders

Carry Forward & Set-Off of Losses

Companies can:

✔ Carry forward business losses for 8 years
✔ Set off losses against future profits

Depreciation Benefits

Businesses can claim depreciation on:

Machinery
Buildings
Equipment

This reduces taxable income significantly.

Choosing the Right Tax Regime

Businesses must decide between:

Old Regime:

✔ Allows deductions and incentives
✔ Suitable for companies claiming exemptions

New Regime (115BAA/115BAB):

✔ Lower tax rates
✔ No exemptions

👉 The right choice depends on your profit structure and investments.

Best Tax Saving Options for Salaried Employees in India (FY 2025-26)

Benefits of Understanding Corporate Tax Structure

✔ Better financial planning
✔ Reduced tax liability
✔ Compliance with Indian tax laws
✔ Improved cash flow management

Common Mistakes Businesses Make

❌ Choosing wrong tax regime
❌ Ignoring MAT implications
❌ Poor tax planning
❌ Missing compliance deadlines

Avoid these mistakes to prevent penalties and financial loss.

Conclusion

The corporate tax structure in India 2026 offers multiple options for businesses to reduce tax burden through concessional rates and proper planning.

Whether you are a startup or an established company, understanding tax regimes, deductions, and compliance rules is essential for long-term growth.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

Income Tax Planning for High Salary Professionals in India (2025 Guide)

High-income professionals often fall into higher tax slabs, resulting in a significant portion of income going toward taxes. However, with smart planning and the right strategies, you can legally reduce your tax liability and maximize savings.

In this guide, we explain income tax planning for high salary professionals in India, including deductions, investments, and expert tips.

Why Tax Planning is Crucial for High Earners

If your income is above ₹10–15 lakhs, tax planning becomes essential to:

✔ Reduce tax burden legally
✔ Optimize investments
✔ Increase take-home income
✔ Avoid last-minute tax stress

Without proper planning, high earners often miss key deductions and end up paying more tax than required.

👉 For expert support, explore

Income Tax Return Filing Services on Digihunter.

Maximize Section 80C Deductions

You can claim up to ₹1.5 lakh deduction under Section 80C.

Best options include:

ELSS (Equity Linked Saving Scheme)
PPF (Public Provident Fund)
EPF (Employee Provident Fund)
Life Insurance Premium
Home loan principal repayment

💡 ELSS is ideal for high earners due to higher return potential.

Use Section 80D – Health Insurance

High-income individuals should not miss this deduction:

₹25,000 for self and family
₹25,000–₹50,000 for parents

This provides both tax savings and financial protection.

Invest in National Pension System (NPS)

NPS offers an additional ₹50,000 deduction under Section 80CCD(1B).

Benefits:

✔ Extra tax saving beyond 80C
✔ Retirement planning
✔ Market-linked returns

Paying too much tax every year?

👉 Get personalized tax planning through Digihunter experts and save more legally.

Claim Home Loan Benefits

Homeowners can claim:

₹1.5 lakh under Section 80C (principal)
₹2 lakh under Section 24(b) (interest)

This is one of the most effective tax-saving tools for high-income professionals.

Optimize Salary Structure

High earners can restructure salary to include:

House Rent Allowance (HRA)
Leave Travel Allowance (LTA)
Food coupons or reimbursements

This reduces taxable income significantly.

How to Save Capital Gains Tax on Property Sale in India

Choose Between Old vs New Tax Regime

High-income individuals should carefully evaluate:

Old Regime:

✔ Allows deductions and exemptions
✔ Better for those with investments

New Regime:

✔ Lower tax rates
✔ No major deductions

In most cases, high earners benefit more from the old tax regime, but calculation is essential.

Plan Capital Gains Smartly

If you earn from investments:

Use indexation benefits
Offset losses against gains
Reinvest under applicable sections

This helps reduce capital gains tax liability.

Invest in Tax-Efficient Instruments

High-income professionals should consider:

ELSS Mutual Funds
Tax-saving bonds
Retirement funds

Avoid investing only for tax saving — focus on long-term wealth creation.

Conclusion

Income tax planning for high salary professionals requires strategic investments, proper use of deductions, and expert guidance.

By leveraging Sections 80C, 80D, NPS, home loan benefits, and salary restructuring, you can significantly reduce your tax liability while building long-term wealth.

Common Mistakes High Earners Make

❌ Delaying tax planning until March
❌ Ignoring deductions beyond 80C
❌ Choosing wrong tax regime
❌ Not consulting professionals

Avoiding these mistakes can save lakhs in taxes.

How to Choose the Right Tax Consultant in India (Complete Guide 2025)

Choosing the right tax consultant is crucial for managing your finances, reducing tax liability, and staying compliant with Indian tax laws. Whether you are a salaried employee, business owner, or freelancer, a qualified tax expert can help you save money, avoid penalties, and make smarter financial decisions.

In this guide, we explain how to choose the right tax consultant in India and the key factors you should consider before making a decision.

Why You Need a Tax Consultant

A professional tax consultant helps you:

✔ File accurate Income Tax Returns (ITR)
✔ Maximize tax deductions and savings
✔ Ensure compliance with GST and tax laws
✔ Avoid penalties and notices
✔ Plan taxes efficiently throughout the year

For reliable services, you can explore Income Tax Return Filing Services on Digihunter.

1. Check Qualifications and Experience

The first step is to verify the consultant’s qualifications.

Look for professionals such as:

Chartered Accountants (CA)
Tax Practitioners
Financial Advisors

Experience matters, especially if you have:

Business income
Capital gains
GST compliance requirements

2. Understand Their Area of Expertise

Different consultants specialize in different areas:

Income Tax Filing
GST Registration & Returns
Business Compliance
Tax Planning

Choose a consultant based on your specific needs.

3. Verify Reputation and Reviews

Before hiring, check:

Client reviews and testimonials
Online ratings
References from existing clients

A consultant with a strong reputation is more reliable and trustworthy.

Looking for trusted and verified tax professionals?

👉 Connect with experienced tax consultants through Digihunter and get expert assistance today.

4. Compare Fees and Transparency

Always discuss fees upfront.

Good consultants:

✔ Provide clear pricing
✔ Avoid hidden charges
✔ Offer value for money

Remember, the cheapest option is not always the best.

5. Check Availability and Support

Your tax consultant should be:

Easily accessible
Responsive to queries
Available during tax deadlines

Timely support is critical, especially during ITR filing season.

6. Ensure Knowledge of Latest Tax Laws

Tax laws in India change frequently.

A good consultant should be updated with:

Latest income tax rules
Budget changes
GST updates
Compliance requirements

This ensures accurate tax planning and filing.

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7. Evaluate Technology and Process

Modern tax consultants use digital tools for:

Document sharing
Online filing
Real-time updates

This makes the process faster and more efficient.

Common Mistakes to Avoid

❌ Choosing based only on low fees
❌ Not verifying credentials
❌ Ignoring reviews and feedback
❌ Hiring unqualified agents

Avoid these mistakes to ensure a smooth experience.

GST Registration Process Step-by-Step in India (Complete Guide 2026)

Tax Planning Checklist Before March 31 (Complete Guide for FY 2025–26)

Conclusion

Choosing the right tax consultant is essential for effective financial planning and compliance. By considering qualifications, experience, reputation, and transparency, you can find a professional who meets your needs.

A reliable tax consultant not only helps you file returns but also guides you in saving tax and growing your finances.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

GST Registration Process Step-by-Step in India (Complete Guide 2026)

Step-by-Step GST Registration Process

Step 1: Visit GST Portal

Go to the official GST portal and click on “New Registration”.

Step 2: Fill Part A of Application

Provide basic details:

Name of business
PAN number
Mobile number
Email ID

You will receive OTP for verification.

Step 3: Get Temporary Reference Number (TRN)

After verification, a TRN is generated, which allows you to complete the application later.

Step 4: Fill Part B of Application

Login using TRN and complete the application by providing:

Business details
Promoter/partner details
Principal place of business
Bank account details

Upload required documents.

Step 5: Aadhaar Authentication

You may be required to complete Aadhaar authentication for faster approval.

Step 6: Application Verification

Submit the application using:

DSC (Digital Signature Certificate)
EVC (Electronic Verification Code)

Step 7: ARN Generation

After submission, an Application Reference Number (ARN) is generated to track application status.

Step 8: GSTIN Allotment

Once approved, you will receive your GSTIN and GST Registration Certificate.

What is GST Registration?

GST (Goods and Services Tax) is a unified indirect tax levied on the supply of goods and services in India.

After registration, a business receives a GSTIN (Goods and Services Tax Identification Number), which is required for:

Collecting GST from customers
Claiming input tax credit
Filing GST returns

Who Needs GST Registration?

You must register under GST if:

✔ Your turnover exceeds ₹40 lakh (₹20 lakh for services in most cases)
✔ You are involved in interstate supply
✔ You sell through e-commerce platforms
✔ You are required to pay tax under reverse charge
✔ You operate as an input service distributor

Documents Required for GST Registration

Before applying, keep the following documents ready:

PAN Card of business/owner
Aadhaar Card
Business registration proof (if applicable)
Address proof of business place
Bank account details
Photograph of owner/partners/directors

Facing issues while applying for GST?

👉 Get hassle-free GST Registration through Digihunter experts and avoid rejection

Benefits of GST Registration

✔ Legal recognition of business
✔ Ability to collect GST from customers
✔ Input Tax Credit (ITC) benefits
✔ Expansion of business across India
✔ Increased credibility

Common Mistakes to Avoid

❌ Incorrect document upload
❌ Mismatch in PAN and Aadhaar details
❌ Wrong business classification
❌ Not completing Aadhaar authentication

Avoiding these errors ensures faster approval.

The GST registration process step-by-step is simple if you follow the correct procedure and submit accurate details. Proper registration helps businesses stay compliant and take advantage of tax benefits under GST.

Professional assistance can ensure smooth registration and avoid delays or rejection.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

Income Tax Deductions You Might Be Missing in India – Save More Tax

Income Tax Deductions You Might Be Missing (Complete Guide for Taxpayers)

Why Knowing Tax Deductions is Important

Understanding tax deductions can help you:

✔ Reduce taxable income
✔ Save more money legally
✔ Avoid overpaying taxes
✔ Plan investments better

If you are unsure about eligible deductions, consider professional assistance through Digihunter’s Income Tax Return Filing Services to ensure accurate tax planning.

Section 80C – Most Common Yet Underutilized

Section 80C allows deductions up to ₹1.5 lakh per year, but many taxpayers fail to utilize the full limit.

Eligible investments include:

Public Provident Fund (PPF)
Equity Linked Saving Scheme (ELSS)
Employee Provident Fund (EPF)
Life Insurance Premium
National Savings Certificate (NSC)
Children’s Tuition Fees
Principal repayment on home loan

Maximizing this section alone can significantly reduce tax liability.

Section 80D – Health Insurance Deduction

Many taxpayers forget to claim deductions for health insurance premiums.

Deduction limits:

₹25,000 for self, spouse, and children
₹25,000 for parents
₹50,000 if parents are senior citizens

Preventive health check-ups may also qualify for deduction.

Section 80E – Education Loan Interest

If you have taken an education loan for higher studies, the interest paid is fully deductible under Section 80E.

Key points:

No maximum deduction limit
Available for up to 8 years
Applicable for self, spouse, or children’s education loans

Section 80G – Donations to Charity

Donations made to approved charitable institutions qualify for tax deductions under Section 80G.

Depending on the organization, deductions may be:

50% of donation amount
100% of donation amount

Always ensure the institution is approved by the Income Tax Department.

Section 24(b) – Home Loan Interest

Homeowners can claim deduction on home loan interest up to ₹2 lakh for self-occupied property.

This deduction is separate from Section 80C principal repayment benefits.

Section 80CCD(1B) – Additional NPS Deduction

Many taxpayers miss this powerful deduction.

Contributions to National Pension System (NPS) qualify for:

₹50,000 additional deduction beyond 80C limit.

This makes NPS one of the most effective tax saving options.

Standard Deduction for Salaried Employees

Salaried individuals automatically receive a standard deduction which reduces taxable salary without requiring any investments.

Ensure this deduction is correctly applied in your income calculation.

Common Mistakes Taxpayers Make

❌ Ignoring small deductions
❌ Not maintaining proper investment proof
❌ Missing deduction deadlines
❌ Choosing the wrong tax regime

These mistakes can result in paying higher taxes than necessary.

Conclusion

Many taxpayers end up paying more tax simply because they are unaware of available deductions. By understanding the income tax deductions you might be missing, you can significantly reduce your taxable income and improve your financial planning.

Professional guidance ensures that you claim every eligible deduction while remaining fully compliant with tax regulations.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today

Tax Planning Checklist Before March 31 (Complete Guide for FY 2025–26)

As the financial year comes to an end, March 31 becomes the most important deadline for taxpayers in India. Proper tax planning before this date helps individuals and businesses reduce tax liability legally and avoid last-minute stress.

Many taxpayers rush to make investments in the final days, often leading to poor financial decisions. Instead, a structured tax planning checklist before March 31 can help maximize deductions and ensure compliance with income tax regulations.

In this guide, we will walk you through a step-by-step checklist to complete before the financial year closes.

Why Tax Planning Before March 31 is Important

Planning your taxes before the end of the financial year helps you:

✔ Reduce taxable income legally
✔ Avoid penalties and interest
✔ Maximize deductions and exemptions
✔ Improve financial planning for the next year

If you are unsure about your tax calculations, consider consulting professionals through Digihunter’s Income Tax Return Filing Services to ensure accurate tax planning.

Review Your Income and Tax Liability

The first step is to calculate your total taxable income for the financial year.

Include:

Salary income
Business income
Rental income
Capital gains
Interest from bank deposits

Once you know your total income, you can estimate the tax payable and identify deductions that can reduce it.

Use Section 80C Investments

Section 80C allows deductions up to ₹1,50,000 per year.

Common tax-saving investments include:

Public Provident Fund (PPF)
Equity Linked Saving Scheme (ELSS)
Life Insurance Premium
Employee Provident Fund (EPF)
5-Year Tax Saving Fixed Deposit
Children’s Tuition Fees

These investments not only reduce tax but also build long-term financial security.

Claim Health Insurance Deduction (Section 80D)

Health insurance provides tax benefits along with financial protection.

Deduction limits:

₹25,000 for self, spouse, and children
₹25,000 for parents
₹50,000 if parents are senior citizens

Make sure your insurance premium is paid before March 31 to claim the deduction for the financial year.

Still unsure whether you have utilized all tax deductions?

👉 Get expert tax consultation through Digihunter and maximize your tax savings before March 31.

Check Home Loan Benefits

Home loan borrowers can claim tax deductions under two sections:

Section 80C – Principal repayment (up to ₹1.5 lakh)
Section 24(b) – Interest deduction (up to ₹2 lakh)

Ensure that your loan statements and documents are updated before filing tax returns.

Contribute to National Pension System (NPS)

NPS offers an additional tax deduction of ₹50,000 under Section 80CCD(1B) beyond the 80C limit.

This is one of the most effective tax saving options for salaried employees and professionals.

Verify Your Tax Regime

Before the financial year ends, evaluate whether the Old Tax Regime or New Tax Regime is more beneficial for you.

The old regime allows multiple deductions, while the new regime offers lower tax rates with fewer exemptions.

Choosing the right regime can significantly affect your tax liability.

Check Capital Gains and Loss Adjustments

If you have sold investments or property during the year, review your capital gains and losses.

Tax planning options include:

Offsetting capital losses against gains
Reinvesting gains under applicable sections
Using indexation benefits

Proper planning can reduce capital gains tax liability.

Submit Investment Proof to Employer

Salaried employees must submit tax-saving investment proofs to their employer before March.

These documents may include:

Insurance premium receipts
ELSS investment statements
Housing loan certificate
Tuition fee receipts

Failure to submit proof may result in higher TDS deductions.

Check Advance Tax Payments

Businesses, freelancers, and professionals must ensure that advance tax payments are completed to avoid interest under tax provisions.

If your total tax liability exceeds a specified threshold, advance tax must be paid in installments during the year.

Common Mistakes to Avoid Before March 31

❌ Last-minute investments without financial planning
❌ Ignoring deductions and exemptions
❌ Incorrect tax regime selection
❌ Missing documentation for deductions

Avoiding these mistakes ensures smooth tax filing.

Conclusion

Tax planning before March 31 is essential to reduce tax liability, avoid penalties, and improve financial planning.

By reviewing income, investing in tax-saving instruments, claiming deductions, and choosing the correct tax regime, taxpayers can significantly optimize their tax position.

Professional assistance ensures compliance and helps maximize tax savings.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

How to Reduce Business Tax Legally in India (Complete Guide for Businesses)

How to Save Capital Gains Tax on Property Sale in India

How to Reduce Business Tax Legally in India (Complete Guide for Businesses)

Running a business in India comes with several tax responsibilities. However, many entrepreneurs and small business owners end up paying more tax than required simply because they are unaware of legal tax saving strategies.

With proper tax planning, businesses can reduce tax liability, improve cash flow, and stay compliant with tax laws.

In this guide, we explain how to reduce business tax legally in India using deductions, exemptions, and smart financial planning.

Why Tax Planning is Important for Businesses

Proper tax planning helps businesses:

Reduce overall tax liability legally
Improve profitability and cash flow
Avoid penalties and notices from the Income Tax Department
Reinvest savings into business growth

Businesses that plan taxes throughout the financial year can maximize deductions and minimize financial stress during tax filing season.

For professional support, businesses can explore tax consultation services through Digihunter to ensure accurate compliance.

Choose the Right Business Structure

Your business structure directly affects tax liability.

Common structures in India include:

Sole Proprietorship
Partnership Firm
LLP (Limited Liability Partnership)
Private Limited Company

Each structure has different tax rates, compliance requirements, and deduction opportunities.

For example:

Proprietorship income is taxed as personal income.
Companies may benefit from lower corporate tax rates.

Selecting the right structure can significantly reduce taxes in the long term.

Claim All Business Expense Deductions

Businesses can claim deductions for expenses incurred while running operations.

Common deductible expenses include:

Office rent
Employee salaries
Internet and electricity bills
Professional services
Marketing and advertising costs
Travel and business meetings

Maintaining proper records and invoices is essential to claim these deductions.

Depreciation on Business Assets

Businesses can claim depreciation on assets used for business purposes.

Examples include:

Computers and laptops
Office furniture
Machinery and equipment
Vehicles used for business

Depreciation reduces taxable income by spreading asset cost over several years.

Confused about which deductions your business can claim?

👉 Get expert tax consultation through Digihunter and optimize your business tax legally.

Use Section 80C and Other Tax Deductions

Business owners can still claim personal deductions under income tax sections like:

Section 80C (PPF, ELSS, life insurance)
Section 80D (health insurance)
Section 80CCD (NPS contributions)

These deductions reduce overall taxable income.

Invest in Business Growth

Certain investments can provide tax advantages while expanding business operations.

Examples include:

Purchasing machinery
Investing in research and development
Technology upgrades

These investments often qualify for deductions or depreciation benefits.

Take Advantage of Startup Tax Benefits

Startups recognized under the Startup India initiative can claim tax benefits such as:

3-year tax holiday under Section 80-IAC
Exemptions on certain investments
Access to government schemes

These incentives encourage innovation and entrepreneurship.

Maintain Proper Accounting and Compliance

One of the biggest mistakes businesses make is poor bookkeeping.

Proper accounting helps in:

Accurate tax calculation
Identifying eligible deductions
Avoiding compliance issues

Using professional accounting or tax services ensures businesses remain compliant with regulations.

Common Mistakes Businesses Should Avoid

Not claiming eligible deductions
Mixing personal and business expenses
Filing tax returns late
Poor financial documentation

Avoiding these mistakes helps businesses reduce unnecessary tax burdens.

Conclusion

Reducing business tax legally requires strategic planning, proper documentation, and awareness of tax benefits available under Indian law.

By selecting the right business structure, claiming deductions, and maintaining compliance, businesses can significantly reduce tax liability while staying fully compliant with tax regulations.

Professional guidance can further optimize tax savings and prevent costly errors.

How to Save Income Tax in India (2026 Complete Guide)

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