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High earners are playing an increasingly crucial role in India's personal income tax collections, with their contribution growing nearly 4X in the past decade. Latest data shows a sharp rise in the number of individuals earning ₹50 lakh + filing ITR.

India’s Income Tax Surge: Contribution from ₹50 Lakh+ Earners Soars

High earners are playing an increasingly crucial role in India's personal income tax collections, with their contribution growing nearly fourfold in the past decade. Latest data shows a sharp rise in the number of individuals earning over ₹50 lakh filing ITR.

The contribution of high earners towards India&rsquo;s personal income tax mop-up is rising at a fast pace. According to the latest income tax return (ITR) filing data, the number of individuals reporting annual income of over Rs 50 lakh has jumped from 1.85 lakh in FY14 to over 9.39 lakh in FY24&mdash;a five-fold surge in just a decade.
This stellar surge is not limited only to the number of high earners; their contribution towards the government&rsquo;s income tax revenue has also seen rapid growth. From Rs 2.52 lakh crore in 2014, it has increased to Rs 9.62 lakh crore in 2024, marking nearly a fourfold increase.
According to media reports citing sources, 76 per cent of income tax collected in FY24 came from those earning above Rs 50 lakh per annum. This surge, as per the source quoted in these reports, is attributed to "strong anti-tax evasion and black money laws implemented by the Modi government."
Participative Tax Administration
A Mint report quotes an unnamed source who believes the change in the government&rsquo;s approach towards tax collection has driven this revenue surge. The person said that &ldquo;earlier the focus was more on enforcement, but today the focus is on sharing of information, and through sharing of information, nudging people towards compliance.&rdquo; They added that the tax department&rsquo;s work is now characterised as &lsquo;participative tax administration,&rsquo; rather than enforcement.
Lower Tax Burden on the Middle Class
While the income tax contribution from high earners has increased significantly over the last ten years, the share of taxes paid by the lower and middle class has notably decreased. The latest income tax data shows the share of tax collected from individuals earning less than Rs 10 lakh has dropped from over 10% to 6.22% over the past decade.
Also Watch: <a href="https://www.editorji.com/business-news/us-retail-inflation-surges-by-2-6-what-this-means-for-fed-rate-cuts-1731563791531">US Retail Inflation Surges By 2.6%: What This Means for Fed Rate Cuts</a>

TCS employees received tax notices due to TDS discrepancies, with demands up to ₹1.5 lakh. TCS advises waiting for rectification, as the issue may stem from a tax authority error. Experts expect the notices to be quashed soon.

TCS Employees Receive Tax Demands—What Went Wrong? Here’s the Real Story

TCS employees received tax notices due to TDS discrepancies, with demands up to ₹1.5 lakh. TCS advises waiting for rectification, as the issue may stem from a tax authority error. Experts expect the notices to be quashed soon.

TCS employees are in for a shock! Many of them have received tax demand notices from the Income Tax Department, asking for payments ranging from ₹50,000 to ₹1.5 lakh. But before you panic, here&rsquo;s what&rsquo;s really going on!
India&rsquo;s largest IT services company, Tata Consultancy Services or TCS, has confirmed that some of their employees have received these notices due to discrepancies in their TDS claims. But don&rsquo;t worry, says TCS!
The IT major has sent an internal mail to employees saying there&rsquo;s no need to pay the demanded amounts right now. They believe the tax authorities made a mistake, and employees should expect rectification notices soon.
The issue seems to stem from a TDS mismatch&mdash;this happens when there&rsquo;s a difference between the TDS reflected in Form 26AS and the amount claimed in the return. Experts say these notices are often automated and can be corrected by the tax department itself.
Let's see how soon this issue gets resolved!
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In the 2023 Budget, the finance minister introduced a standard deduction of 50,000 rupees for salaried taxpayers and pensioners under the new regime, which became the default unless opted out

Budget 2024: FM may raise Standard Deduction under New Tax Regime, say reports 

In the 2023 Budget, the finance minister introduced a standard deduction of 50,000 rupees for salaried taxpayers and pensioners under the new regime, which became the default unless opted out

The finance ministry is planning to increase the standard deduction limit for taxpayers under the new tax regime, while the older, exemption-filled regime will remain unchanged, according to the reports by Times of India. The report further adds that the Finance Minister Nirmala Sitharaman has started public consultations on the budget, although most discussions are currently within the finance ministry. Also read/watch - <a title="Prosus writes off Byju's stake, marking $493 million in loss" href="https://www.editorji.com/business-news/prosus-writes-off-byju-s-stake-marking-493-million-in-loss-1719226629913">Prosus writes off Byju's stake, marking $493 million in loss</a>
These internal assessments will be reviewed with other government branches and the Prime Minister's Office before final decisions. In the 2023 Budget, the finance minister introduced a standard deduction of 50,000 rupees for salaried taxpayers and pensioners under the new regime, which became the default unless opted out. Additionally, a rebate under Section 87A was increased for taxable incomes up to 7 lakh rupees, eliminating taxes for these earners, and the highest surcharge under the new regime was removed.

The government plans to revise income tax rates, focusing on lower income levels to boost consumption, which is crucial for economic revival. Tax rationalisation is favored over welfare spending to enhance fiscal stability and stimulate economic activities

Govt may cut income tax rate to boost demand, rekindle capital expenditure: Report

<h2>The government plans to revise income tax rates, focusing on lower income levels to boost consumption, which is crucial for economic revival. Tax rationalisation is favored over welfare spending to enhance fiscal stability and stimulate economic activities</h2>

The middle class may get some relief as the income tax rate is likely to be revised. As per Indian Express, policymakers in the government are in favour of rationalising the existing income tax structure, especially at lower income levels.
<h3>Income Tax rate</h3>
The Indian Express report quoted two government officials and said that it is likely that tax rate cuts for those earning less may likely take precedence over freebies or excessive welfare spending given the focus on fiscal consolidation.
This comes as the government is aiming to boost consumption by cutting rate that would enhance disposable income. As per Indian Express, a boost to consumption is being seen as crucial for reviving demand, which in turn is central to restarting the investment cycle, especially rekindling private capital expenditure in consumer-focused sectors
This could also add to GST Collections. &ldquo;This way (tax rationalisation), you will unlock consumption. There would be greater disposable income, means greater consumption, greater economic activities, more GST collection. So you may be actually activating more direct and indirect revenue collection. It would also mean more direct tax collection, also for corporations, because they would be having more income to report,&rdquo; an official told Indian Express.
At present, the rise in marginal income tax is &ldquo;too steep&rdquo;. &ldquo;Right now, in the new tax system, your first slab of 5 per cent starts at Rs 3 lakh. By the time it goes to Rs 15 lakh, which is five times, the marginal tax rate jumps from 5 per cent to 30 per cent &mdash; a six fold jump. So while income goes up five times, the marginal tax rate goes up six times, which is quite steep,&rdquo; the official told Indian Express.
<h3>Tax Simplification</h3>
This Tax simplification is also seen as as a better tool than overt spending on welfare schemes, which may see possible leakages. &nbsp;&ldquo;Our deficit is not too low. The poor cannot be benefitted at the cost of fiscal instability. Consumption should come from economic activities generated through appropriate government schemes and not voucher spend. It can be done through tax cuts, especially for lower income levels,&rdquo; another official told Indian Express.
The newly formed government under Prime Minister Narendra Modi is expected to &nbsp;present the full Budget for financial year 2024-25 by the third week of July.
Also watch: <a href="https://www.editorji.com/business-news/economy/full-budget-likely-to-be-present-on-july-22-report-1718346922422">Full budget likely to be presented on July 22: Report</a>

Internal discussions are currently underway to determine the threshold for compounding offences. Presently, criminal prosecution can be triggered for minor infractions, such as delayed payment of TDS, which can even lead to the prosecution of company directors

Govt to decriminalise minor tax offences within 100 days: Report

Internal discussions are currently underway to determine the threshold for compounding offences. Presently, criminal prosecution can be triggered for minor infractions, such as delayed payment of TDS, which can even lead to the prosecution of company directors

The Centre plans to address a long-standing industry demand by decriminalising minor income tax offences as per an exclusive report by Moneycontrol.
Prosecution will be replaced with penalties to improve ease of doing business, a senior government official revealed to Moneycontrol.
Also read/watch -<a title=" Singapore airlines offers compensation after turbulence incident " href="https://www.editorji.com/business-news/singapore-airlines-offers-compensation-after-turbulence-incident-1718091903846"> Singapore airlines offers compensation after turbulence incident</a>
The report further added that within the next 100 days, the government plans to promote ease of doing business by revising certain provisions of the Income Tax Act. The threshold for what constitutes a minor offence will be established to facilitate this change. Internal discussions are currently underway to determine the threshold for compounding offences. Presently, criminal prosecution can be triggered for minor infractions, such as delayed payment of TDS, which can even lead to the prosecution of company directors.&nbsp;

The CBDT order said that the outstanding tax demands pertaining to income tax, wealth tax and gift tax as on January 31, 2024, shall be remitted and extinguished and the limit include principal component of tax demand, interest, penalty or fee, cess, surcharge

Income tax demand of up to Rs 1lakh/person can be withdrawn: IT department

<h2>The CBDT order said that the outstanding tax demands pertaining to income tax, wealth tax and gift tax as on January 31, 2024, shall be remitted and extinguished and the limit include principal component of tax demand, interest, penalty or fee, cess, surcharge</h2>

The Income Tax department has begun the process of extinguishment of old outstanding small income tax demand as announced in the Interim Budget 2024. The Central Board of Direct Taxes (CBDT) has set the ceiling at Rs 1 lakh per person for withdrawal of small tax demands till Assessment Year 2015-16.
<h3>Tax Withdrawal</h3>
The CBDT order said that the outstanding tax demands pertaining to income tax, wealth tax and gift tax as on January 31, 2024, shall be remitted and extinguished "subject to the maximum ceiling of Rs 1 lakh for any specific taxpayer/assessee".
The limit of Rs 1 lakh would include principal component of tax demand, interest, penalty or fee, cess, surcharge.
However, the remission shall not be applicable on the demands raised against the tax deductors or tax collectors under TDS or TCS provisions of the I-T Act.
Also Read: <a href="https://www.editorji.com/business-news/tax-payers-who-donated-to-unrecognised-political-parties-under-income-tax-department-s-radar-1707987872235">Tax payers who donated to unrecognised political parties under Income Tax department's radar</a>
Finance Minister Nirmala Sitharaman in the interim budget said that that tax demands for AY 2010-11 of up to Rs 25,000 and for AY 2011-12 to 2015-16 of up to Rs 10,000 will be withdrawn. Tax demands totalling about Rs 3,500 crore will be withdrawn following the announcement.
Nangia Andersen India Partner Maneesh Bawa said the directive further specifies that this waiver or cancellation does not entitle taxpayers to any claims for credit or refunds.
Additionally, the waiver or cancellation will not influence any ongoing, planned, or potential criminal legal proceedings against the taxpayer and does not grant any immunity under any legislation.
"Taxpayers are advised to access their online accounts and navigate to Pending Action &gt; Response to Outstanding Demand to verify the status of 'Extinguished Demands' related to them," Bawa said.
Revenue Secretary Sanjay Malhotra had earlier this month said that there are about 1.11 crore such disputed tax demands
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 The Income Tax department has frozen the Congress' main bank accounts on "flimsy grounds", treasurer Ajay Maken claimed on Friday

I-T appellate allows Congress to operate frozen bank accounts

I-T appellate grants relief to Congress
I-T appellate allows operation of Congress accounts
Congress said I-T dept had frozen 4 of its bank accounts

&nbsp;The Income Tax department has frozen the Congress' main bank accounts on "flimsy grounds", treasurer Ajay Maken claimed on Friday

Just over an hour after Congress in a press conference said that four of its bank accounts were frozen, the Income Tax appellate tribunal granted it relief.&nbsp;
The tribunal allowed the Congress to operate its accounts till the next hearing which is on February 21.&nbsp;
&nbsp;The Income Tax department has frozen the Congress' main bank accounts on "flimsy grounds", treasurer Ajay Maken claimed on Friday and said this has affected all political activity of the party barely two weeks before general elections are announced.
The party is unable to use even the funds received under its crowdfunding scheme, Maken said at a press conference and alleged that democracy is in danger in the country. Maken said four main bank accounts were frozen. Sources later put the number at nine.
The accounts, including that of the Indian Youth Congress, were frozen on an Income Tax demand of Rs 210 crore for 2018-19, an election year, Maken said.
According to him, the party filed its Income Tax return for the concerned year a few days late and that is why this action. He said the IT authorities' orders freezing the accounts had come on Wednesday.
"For the first time in the country's history, accounts of the principal opposition party have been frozen by the tax authorities on flimsy grounds, barely two weeks before the announcement of general elections," Maken told reporters.
Congress president Mallikarjun Kharge said in a post on X, "Power drunk Modi Government has frozen the accounts of the country's largest Opposition party - the Indian National Congress - just before the Lok Sabha elections." "This is a deep assault on India's Democracy," he added. The unconstitutional money collected by the BJP would be utilised by them for elections, but the money collected by the Congress through crowdfunding shall be sealed, the party president said.
"That is why, I have said that there won't be any elections in the future. We appeal to the Judiciary to save the multi-party system in this country and protect India's Democracy," the Congress president said.
He said they will take to the streets and wage a strong fight against this autocracy.
Echoing the party chief, Maken appealed to the judiciary to save democracy as it was in danger and said the country is headed towards "one-party democracy".
He said the party has already appealed to the Income Tax appellate authority and hoped for justice. The party will otherwise make an appeal before the judiciary, Maken said.
On Thursday, the Supreme Court scrapped the Centre's electoral bonds scheme of anonymous political funding, calling it "unconstitutional" and ordering disclosure of the bond's donors, amount and recipients by March 13.
With PTI inputs

The Congress has said that the Income Tax department has frozen 4 of its bank accounts

Ajay Maken: Congress bank accounts frozen, Income Tax demanded Rs 210 in recovery

The Congress has said that the Income Tax department has frozen 4 of its bank accounts

The Income Tax department has frozen the Congress' four main bank accounts on "flimsy grounds", party treasurer Ajay Maken claimed on Friday and alleged that democracy was in danger in the country.
This has affected all political activity of the party, Maken said at a press conference. Sources later said nine accounts had been frozen.
The accounts were frozen on an Income Tax demand of Rs 210 crore for 2018-19, an election year, Maken said.
"For the first time in the country's history, accounts of the principal opposition party have been frozen by the tax authorities on flimsy grounds, barely two weeks before the announcement of general elections," Maken told reporters.
He appealed to the judiciary to save democracy as it was in danger and said the country is headed towards one-party democracy.
Maken said the party has already appealed to the Income Tax appellate authority.&nbsp;

About 5,000 notices are sent under Section 80GGC of the Income Tax Act as the donations to political parties did not match the declared income and it is suspected that these parties may have returned some of the amount in cash

Tax payers who donated to unrecognised political parties under Income Tax department's radar

<h2>About 5,000 notices are sent under Section 80GGC of the Income Tax Act as the donations to political parties did not match the declared income and it is suspected that these parties may have returned some of the amount in cash</h2>

The Income Tax department has sent notices to a number of taxpayers who made donations to political parties that are registered, but not recognised by the Election Commission. The notices were sent both to individuals and corporates for donations made in FY21 and FY22.&nbsp;
As per The Economic Times, the income tax department is investigating if such payments to lesser-known political parties were used to evade tax and launder money.
<h3>Donation to political parties</h3>
About 5,000 notices are sent under Section 80GGC of the Income Tax Act.
"So far, about 5,000 notices have been sent for FY21 and FY22. We will be sending more notices in the coming days," a senior official told ET. "The donations were made to about 20 registered, but unrecognised, political parties", the official said.
Also Read: <a href="https://www.editorji.com/business-news/income-tax-filings-reach-a-record-high-of-8-18-crore-by-december-31st-1704197799942">Income tax filings reach a record high of 8.18 crore by December 31st</a>
The official further told the publication that the donations did not match the declared income, and it is suspected these parties may have returned some of the amount in cash. In some cases, taxpayers have donated up to 80% of their income to a political party that's not even properly registered.
"We have sent notices where donation was not in proportion to income," a senior official told The Economic Times.&nbsp;
An unrecognised poltical party is the one that is registered but has not contested in any election or have not acquired the vote percentage threshold in assembly or Lok Sabha polls.
A taxpayer can deduct 100% of the donated amount to a registered electoral trust or political party subject to total deduction not exceeding the individual's total income.&nbsp;
&nbsp;
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Recognizing the intricacies of tax filing, the government implemented user-friendly measures. These included prefilled data covering salary, interest, dividends, tax payments, and other financial aspects to streamline process 

Income tax filings reach a record high of 8.18 crore by December 31st

Recognizing the intricacies of tax filing, the government implemented user-friendly measures. These included prefilled data covering salary, interest, dividends, tax payments, and other financial aspects to streamline process&nbsp;

Income tax filings have surged to a new pinnacle, with a staggering 8.18 crore Income-tax Returns (ITRs) filed for the Assessment Year 2023-2024 by December 31 of the previous year, marking a notable increase from the 7.51 crore ITRs filed by the same time in 2022.
According to a recent release by the Ministry of Finance, this surge represents a significant uptick of 9% in comparison to the total ITRs filed for the previous Assessment Year 2022-23. Additionally, during this period, a substantial 1.60 crore audit reports and other forms were filed, showcasing an increase from the 1.43 crore filings during the corresponding time in the previous year.
The Ministry observed a commendable trend among taxpayers who diligently cross-referenced their financial transactions by accessing their Annual Information Statement (AIS) and Taxpayer Information Summary (TIS), reflecting a heightened sense of responsibility and awareness among taxpayers.
Acknowledging the complexities of tax filing, the government introduced user-friendly initiatives to simplify the process. Prefilled data, encompassing various financial aspects such as salary, interest, dividends, tax payments, and more, significantly facilitated smoother and faster ITR filings.
The launch of the TIN 2.0 digital e-pay tax payment platform, which replaced the OLTAS payment system, offered enhanced payment options including Internet Banking, NEFT/RTGS, OTC, Debit Card, payment gateway, and UPI. This platform ensured real-time crediting of taxes, streamlining the ITR filing process for taxpayers.
To motivate early filings, the government conducted over 103.5 crore outreach initiatives through targeted emails, SMS, and creative campaigns, resulting in the 9 percent increase in ITR filings for the A.Y. 2023-24 by December 31, 2023.
Moreover, the e-filing Helpdesk adeptly managed approximately 27.37 lakh taxpayer queries through various channels such as inbound and outbound calls, live chats, WebEx, and co-browsing sessions, providing proactive support during peak filing periods.
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An official of the State Bank of India said that they have received 176 bags out of which 140 have been counted.

IT raid at Congress MP Dheeraj Sahu's premises in Odisha concludes

An official of the State Bank of India said that they have received 176 bags out of which 140 have been counted.

Income tax officials on Tuesday concluded an IT raid at Congress MP Dheeraj Sahu's premises in Odisha's Balangir.
According to sources, around Rs 280 crore cash has been recovered from Dheeraj Sahu's Balangir's premises alone.
On Sunday, during the Income Tax raids at properties connected to Rajya Sabha MP Dheeraj Sahu, huge stacks of currency notes were seized.
"We received 176 bags and 140 of them have been counted, the rest will be counted today. Officials from 3 banks are involved in the counting process; 50 of our officials are involved. About 40 (currency counting) machines were brought here; 25 are in use and 15 are kept as a backup," the SBI Regional Manager said.
The Income Tax sleuths conducted raids at the premises of Boudh Distilleries Private Limited on Sunday as the crackdown by the central agency entered its fifth day.

The cash seizure in the income-tax department's searches against an Odisha-based distillery company has crossed 300 crore rupees, according to a PTI report.&nbsp;

Cash haul in IT raids linked to Congress MP crosses Rs 300-crore mark

The cash seizure in the income-tax department's searches against an Odisha-based distillery company has crossed 300 crore rupees, according to a PTI report. 

The cash seizure in the income-tax department's searches against an Odisha-based distillery company has crossed 300 crore rupees, according to a PTI report.&nbsp;

The cash seizure in the income-tax department's searches against an Odisha-based distillery company has become the "highest-ever" such haul in a single action conducted by any probe agency in the country and gone past Rs 300 crore, official sources said on Sunday.
The marathon raids against Boudh Distillery Private Limited, its promoters and others entered the fifth day on Sunday. The raids were launched on December 6 by the taxman on charges of tax evasion and "off-the-book" transactions.
The sources told PTI that cash to the tune of more than Rs 300 crore has been counted till now and the counting is still on.
The department believes that the entire cache of currency is "unaccounted" money earned from cash sales of country liquor by the business group, distributors and others.
This is the highest-ever cash seizure made by an agency in the country as part of an action against a single group and entities linked to it, the sources had said.
Some of the high-value seizures in the past include one from 2019 when the GST Intelligence raided a Kanpur-based businessman and seized cash amounting to Rs 257 crore and another instance where cash amounting to Rs 163 crore was unearthed by the I-T department during searches against a road construction firm in Tamil Nadu in July 2018.
The department is also recording the statements of the executives and other staff who were present at the searched locations and will soon issue summonses to the main promoters of the company for recording their statements.
The premises of Congress's Rajya Sabha MP from Jharkhand, Dhiraj Prasad Sahu, in Ranchi and other places were also covered during the searches by the department. It was not clear what amount of cash and other documents were seized from Sahu's house.
The company and the MP did not respond to PTI's queries regarding the action being carried out against them.
Union Tourism Minister G Kishan Reddy sought to know on Sunday why Congress leader Rahul Gandhi is silent on the seizure of crores of rupees from premises allegedly linked to his party MP during these I-T department searches.
Karnataka Chief Minister Siddaramaiah accused the Centre of targeting only the Congress and not the BJP, in the wake of this huge cash seizure.

Income Tax Department is conducting a raid at DMK MP S Jagathrakshakan's house in Chennai.

Income Tax Department raids DMK MP S Jagathrakshakan's house in Tamil Nadu

Income Tax Department is conducting a raid at DMK MP S Jagathrakshakan's house in Chennai.

Income Tax officials carried out raids at the residence of DMK MP S Jagathrakshakan and about 20 other locations linked to him.
According to PTI, some educational institutes were among the places searched by the probe agency.
Jagathrakshakan is a Lok Sabha MP from the Arakonnam constituency of Tamil Nadu.
The raids comes months after Tamil Nadu minister V Senthil Balaji was arrested by the Enforcement Directorate in an alleged money laundering case.
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This surge is attributed to a dual impact - the shift of many taxpayers from lower to upper income brackets and a decline in zero-tax liability returns

Middle-class Indians income triples to Rs 13 lakh in FY22 from Rs 4.4 lakh in FY13: Report 

This surge is attributed to a dual impact - the shift of many taxpayers from lower to upper income brackets and a decline in zero-tax liability returns

A recent report from SBI Research revelaed that the average income of middle class has experienced a substantial growth trajectory.
Starting at ₹4.4 lakh in the financial year 2012-13 FY13, it has surged to an impressive ₹13 lakh by FY22.
The report titled 'Deciphering Emerging Trends in ITR Filing: The Ascent of the New Middle Class in Circular Migration' delves into the data on income tax returns (ITR) and highlights how the landscape of India's middle-class income has transformed.
The reasons behind this remarkable shift are two-fold. Firstly, many taxpayers have transitioned from the lower income group to the upper income group, consequently elevating the overall average. Secondly, there has been a noticeable decline in the number of return filers with zero tax liability.
The report sheds light on the middle-class transition over the past decade. In FY11, a staggering 84% of the 16 million tax filers belonged to the income group of up to ₹5 lakh.
However, by FY22, this proportion has decreased to 64% among the 68.5 million ITR filers. This indicates that approximately 13.6% of the population has moved up the income ladder over this period.
Furthermore, there has been a positive trend in the reduction of zero-tax liability returns. These are cases where an individual's taxable income falls below the basic exemption limit, making them exempt from paying taxes. This share has declined from 84.10% in FY11 to 64% by FY22.
Looking ahead, the report forecasts that the average income is set to further increase to ₹49.70 lakh by 2047.
This projection is driven by an expected rise in the number of tax filers and a shift in the distribution of tax filers towards higher income brackets. Additionally, the report estimates that about 25% of ITR filers will move out of the lowest income strata (annual income of up to ₹5 lakh) by FY47.
The report also highlights improvements in timely return filing and processing. In FY22, 75% of the 78 million returns were filed on or before the due date, a significant improvement from the 60% in FY19.
The processing of returns has also become more efficient, with 64% of the 68 million returns filed in FY23 being processed by the due date.
The report not only illustrates the remarkable growth in the average income of middle-class Indians but also offers insights into the changing dynamics of the workforce and tax filers.
It suggests strategies to enhance accuracy in capturing migration patterns and socio-economic characteristics, as well as leveraging technology to streamline the tax filing process.
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On this episode of Invest Smart, Editorji's Avni Raja speaks to Finance Educator & CA Kanan Bahal on how to figure out whether to opt for the new tax regime or the old regime. 

Invest Smart: Old tax regime vs new tax regime - Here's all you need to know

On this episode of Invest Smart, Editorji's Avni Raja speaks to Finance Educator &amp; CA Kanan Bahal on how to figure out whether to opt for the new tax regime or the old regime.&nbsp;

The changes to the new tax regime announced in Budget 2023, made it extremely attractive for the salaried class. However, while the tax rate is lower, the new tax regime does not offer any of the other tax saving deductions that could be claimed in the old regime.&nbsp; The big question on everyone's mind is how does one decide which regime is most beneficial? In this episode of Invest Smart, Editorji's Avni Raja and Finance Educator, Kanan Bahl break it down for you and tell you how to make that decision.&nbsp; Remember, the new tax regime is the default regime. This means, if you do not make your choice clear, the new regime will automatically apply to you.&nbsp; So, it's extremely important to assess your income and your investments, calculate your taxable income and then decide which regime is more beneficial to you.&nbsp;
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The income tax authorities are closely examining influencers' social media posts to detect tax evasion

Social media influencers who evade taxes are under Income Tax department's radar 

The income tax authorities are closely examining influencers' social media posts to detect tax evasion

The income tax department does more than just review your tax return and financial statements. In actuality, they also peruse your social media posts. The income tax department may pick up on your social media posts as a possible sign of tax evasion.
The income tax department has written letters to 15 social media influencers who posted about their luxury vacations and shopping trips while paying no income tax or very little income tax. The income tax department asked these 15 social media influencers to identify their sources of income tax and the basis for their failure to pay income tax, as per CA Club of India's official website
According to reports, the income tax division is employing data analytics to review social media influencers' accounts to look for any discrepancies between their social status and the ITRs that have been filed. To determine if social media influencers are underreporting their income or not, they use data analytics.
The 15 social media celebrities who received income tax warnings are from a variety of industries, including Bollywood, fashion, lifestyle, travel, etc. The income tax division has requested information from the influencers regarding their earnings from sponsored material, brand endorsements, etc. in a notice.
The income tax division has also requested information from these 15 taxpayers regarding money spent on travel, clothing and other items, lodging, etc.
This action by the income tax department against media influencers is intended to increase income tax compliance among high earners who hide their ITR while evading taxes.
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Lok Sabha has passed the Finance Bill 2023 that proposed a big change for debt mutual funds, whereby taxation benefits including long term capital gains and indexation benefit will no longer be available. 

Finance Bill 2023: Govt does away with taxation benefits for debt funds 

Lok Sabha has passed the Finance Bill 2023 that proposed a big change for debt mutual funds, whereby taxation benefits including long term capital gains and indexation benefit will no longer be available.&nbsp;

Lok Sabha on Friday passed the Finance Bill giving effect to tax proposals without debate. The proposal to remove the capital gains tax benefit given to debt mutual fund investors is also amended. According to the amendment, debt funds not having more than 35% invested in equity shares would be taxed at the income tax slab level. It will also be treated as a short term capital gain.&nbsp;
So far, debt mutual funds are treated as long-term investments if held for more than 3 years and taxed at the rate of 20% along with indexation benefits or 10% without indexation. (Indexation benefit is where the taxes are calculated accounting for inflation). For those with a holding period of less than 3 years, they are taxed according to their tax slab.
The changes, are also applicable for gold, international equity and even domestic equity fund of funds (FoFs). This will be applicable from April 1, 2023 and therefore, investors who want to take advantage before the proposed changes come into effect can do so before year-end.
Experts say that these proposals are a big negative for the mutual fund industry which will have to overhaul their debt portfolio. Meanwhile, banks are likely to see an increase in fixed deposit flows because there will be no added benefit of investing in debt funds versus FDs.&nbsp;&nbsp;

Modi 2.0's last full budget before 2024 elections was presented in Parliament on Wednesday. We dissect the budget with leading experts. 

The India Story | Union Budget 2023: key takeaways 

It was the fifth budget of Modi 2.0 and the last full budget before the 2024 general elections. Claiming that the Indian economy is on the right path and heading towards a bright future, Finance Minister Nirmala Sitharaman announced major changes in tax slabs under the new tax regime and big hike in allocation for railways and capital expenditure.

In this week’s episode of The India Story, we get you the latest on Budget 2023, key takeaways, views from experts and a lot more.

On the show tonight, Vikram Chandra speaks with Investment Mogul Madhusudan Kela, Tata Steel Managing Director TV Narendran, and former FICCI president Naina Lal Kidwai. Also a peak into a conversation between G20 Sherpa Amitabh Kant and Director-General of CII, Chandrajit Banerjee.

Modi government 2.0's last full budget before 2024 elections was presented in the Parliament on Wednesday. We dissect the budget with leading experts.&nbsp;

It was the fifth budget of Modi 2.0 and the last full budget before the 2024 general elections. Claiming that the Indian economy is on the right path and heading towards a bright future, Finance Minister Nirmala Sitharaman announced major changes in tax slabs under the new tax regime and big hike in allocation for railways and capital expenditure.
In this week&rsquo;s episode of The India Story, we get you the latest on Budget 2023, key takeaways, views from experts and a lot more.
On the show tonight, Vikram Chandra speaks with investment mogul Madhusudan Kela, Tata Steel Managing Director TV Narendran, and former FICCI president Naina Lal Kidwai. Also a peak into a conversation between G20 Sherpa Amitabh Kant and Director-General of CII, Chandrajit Banerjee.

After the Income Tax department conducted a survey on the BBC’s offices in India, a ruckus has broken out over the issue. We recap the war of words over the action, and what various stakeholders have to comment about it.

The India Story | Ruckus after Income Tax survey on BBC India

After the Income Tax department conducted a survey on the BBC&rsquo;s offices in India, a ruckus has broken out over the issue. We recap the war of words over the action, and what various stakeholders have to comment about it.

Rijiju clarified that the Supreme Court judgment does not dilute Article 371F of the Constitution concerning Sikkim, and "has nothing to do with anyone's citizenship".

Sikkim protest: Modi govt to file review plea in Supreme Court over 'immigrant' tag on Sikkimese Nepalis

Rijiju clarified that the Supreme Court judgment does not dilute Article 371F of the Constitution concerning Sikkim, and "has nothing to do with anyone's citizenship".

Amid protests in Sikkim over the Supreme Court's observations regarding the Sikkimese Nepali community, the Narendra Modi government has said that it will file a review petition in the apex court.
Union Law Minister Kiren Rijiju on 5 February 2023 said that the central government stands with the people of Sikkim, and so, will file a petition in support of the one submitted by the state government.
Rijiju clarified that the Supreme Court judgment does not dilute Article 371F of the Constitution concerning Sikkim, and "has nothing to do with anyone's citizenship". "We value the Constitutional status of every genuine Indian and (it) will be protected at any cost," he said.
Protests broke out in the state after the top court reportedly referred to Sikkimese Nepalis as "immigrants". The Supreme Court reportedly mentioned the Sikkimese Nepali community as immigrants in an observation on January 13 while extending income tax exemption to all old settlers of the state.
(With PTI inputs)
Also Watch: <a href="https://www.editorji.com/india-news/adani-hindenburg-row-fresh-protest-in-parliament-lok-sabha-adjourned-for-3-hours-amid-opposition-sloganeering-1675402890940">Adani-Hindenburg row: Day 2 of protest in Parliament; Lok Sabha adjourned amid Opposition sloganeering</a>

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