[ruzbehxyz]

The Government has made it mandatory for employees who are subject to TDS, to declare their PAN or Aadhar, or they will be subject to a mandatory deduction of 20% TDS from their salary.

Source: https://m.timesofindia.com/business/..._content=om-bm

[binand]

Originally Posted by ruzbehxyz

The Government has made it mandatory for employees who are subject to TDS, to declare their PAN or Aadhar, or they will be subject to a mandatory deduction of 20% TDS from their salary.

I think the reporting of this news has been highly misleading. The rule that "you have to declare PAN or be subjected to 20% TDS" has been around for many years now (all of us salaried do declare PAN and therefore get TDS done at our correct marginal rates, so we aren't affected).

What the big G has done now is to allow those who haven't declared PAN - usually because they don't have one - to get away with declaring Aadhaar - which is now at 98%+ coverage. What I understand is that if the declared Aadhaar does not have a linked PAN then the IT department will generate one for you.

In other words, this move reduces compliance requirements and cost for people who are at such low incomes that they fall in brackets where the marginal rates are <= 20%.

[S_U_N]

Originally Posted by concorde24

How long an Income tax Return can be open? Is there any rule for this?

My AY2015 is transferred to Assessing Officer with pending due. I have disagreed with demand and asked for details and it is still open. My AY2016 is processed complete and closed. I have sent couple of mails to AO email id but no response till now. Any suggestions for next steps?

Thanks!

As mentioned, you might need to get in touch with a CA if the amount is substantial or exceeds the cost of the services from CA since your case is that of a 'dispute' of some sort.

In general, if there is no such 'dispute' then as per one of the tax consultant, for AY 2018-19, the AO needs to close matter till March 31 2020.
I am myself waiting for the AO until that time, before I can lodge a grievance through the incometax portal.

[VWAllstar]

Anyone can give concrete information on 80 GGC?

As per norms, 100% of contribution under this is tax exempted. But is there a limit? And what kind of proof is required to be submitted? What is the limit one can update without the worry of being scrutinized?

[Rodie09]

I believe this is charitable donations. Except only a handful of trusts, all other donations are capped at 50% exemption only.

You may want to check for specific donation through respective trust.

[KL01toKA03]

In the new IT regime, will EPF contributions be included in the taxable income?

[swissknife]

Originally Posted by KL01toKA03

In the new IT regime, will EPF contributions be included in the taxable income?

Yes. From what one figures from "no deductions".

[BaCkSeAtDrIVeR]

Originally Posted by VWAllstar

Anyone can give concrete information on 80 GGC?

As per norms, 100% of contribution under this is tax exempted. But is there a limit? And what kind of proof is required to be submitted? What is the limit one can update without the worry of being scrutinized?

There are 3 types of exemption for donations.

First is donations which are fully exempt. Only donation to PM / CM relief fund and some similar funds enjoy benefit.

Second category is fully exempt but donations only up to a certain percentage of gross income of person making the donation are exempt.

In third category, only half of the donated amount is eligible for exemption, and again, total donation cannot exceed a proportion of gross income of person making the donation.

In all cases, donations above ₹ 5k should be by crossed a/c payee cheque or in electronic form, including debit / credit card. The receipt should show PAN of both giver and receiver. And should be signed, stamped and be sealed.

[skchettry]

New NRI Taxation rules in Budget 2020 - Resident days need to be less than 120 days in order to qualify as an NRI (for taxation purposes). There was a clarification and I saw it only on Yes Bank Budget Highlights that those working as residents of other countries and sea farers would continue to be governed by the old rule of 182 days.
Can someone on this forum clarify since one of my CA friends tells me that 182 days criteria does not exist anymore and that it has been completely replaced by 120 days rule?

[binand]

Originally Posted by skchettry

New NRI Taxation rules in Budget 2020

I haven't really kept track, but this is what I have gathered:

1. You cannot be an NRI in any FY if you have spent 120 days or more in India. There are no exceptions to this as far as I know.

2. If you are an NRI and have income that is not taxed in any jurisdiction, then it is to be taxed in India.

The latter is targeted at people who spend their year in such a way that they don't live in any single tax jurisdiction for long enough to make them resident there.

[Turbanator]

Originally Posted by binand

2. If you are an NRI and have income that is not taxed in any jurisdiction, then it is to be taxed in India.

There are few countries where there is zero tax like in Middle East. So if anyone is earning in those countries, they don’t need to pay anything as long as they qualify as NRI.

is targeted at people who spend their year in such a way that they don't live in any single tax jurisdiction for long enough to make them resident there

This clause is valid if you are not a Tax Resident in any Country and hold Indian Citizenship.

[S_U_N]

Originally Posted by Turbanator

This clause is valid if you are not a Tax Resident in any Country and hold Indian Citizenship.

I have this situation for the FY 2019-2020 (Indian perspective) and FY 2019 (Norway perspective), that I am not tax resident in either country.

I moved to Norway in September so I am not tax resident here as per the tax consultant team here (<182 days between 04 September and 31 December) and at the same time I was in India for <182 days (starting 01 April 2019 till 04 September), so, I am not a tax resident in India as well.
I wonder if this new announcement has any effect before April 2020 - meaning if it affects me for 2019-20 or did I 'escape'?

[binand]

Originally Posted by S_U_N

I wonder if this new announcement has any effect before April 2020 - meaning if it affects me for 2019-20 or did I 'escape'?

Budget proposals come into effect in the subsequent financial year. These, starting FY 2020-21.

[skchettry]

Originally Posted by binand

I haven't really kept track, but this is what I have gathered:

1. You cannot be an NRI in any FY if you have spent 120 days or more in India. There are no exceptions to this as far as I know.


Budget 2020.pdf

Please see the attachment from Yes Bank. The relevant paragraph has been underlined in red to highlight it.

There are a lot of NRIs like me working in oil fields abroad who have equal on and off work schedules and are a bit confused between such interpretations and what is implied in the Budget.

[binand]

Originally Posted by skchettry

Please see the attachment from Yes Bank. The relevant paragraph has been underlined in red to highlight it.

Since it is a bank advising you this way it is probably more reliable than mine. But you ideally should still ask a tax practitioner. Because the bank's advice is not what I have heard elsewhere.

Attached is NUSI's circular to its members.

Budget_2020_seafarers_income_tax.pdf