No Extension for Income Tax Return Filing Deadline: CBDT Chief
CBDT Chairman Ravi Agarwal announced that the income tax return filing deadline will not be extended, and the old income tax regime will continue for now, with a decision on its further continuation to be taken based on taxpayer response
Income Tax ReturnCbdtIncome Tax RegimeLong Term Capital Gains TaxReal EstateReal EstateJul 26, 2024
As of July 25, a total of 4.7 crore income tax returns have been filed, which is an 8-9% increase from the same period last year. The CBDT Chief attributed this increase to the upward trend in tax filing, stating that people are filing their returns on time.
Regarding the continuation of the old income tax regime, Agarwal mentioned that the government is encouraging taxpayers to opt for the new income tax regime, which offers various benefits. However, he clarified that a decision on the old income tax regime will be taken by the end of the year, depending on the response from taxpayers and their feedback.
The Union Budget 2024-25 has introduced several tax benefits for the new income tax regime, including a rejig in the slabs and a higher standard deduction of Rs 75,000 crore. These changes can result in savings of up to Rs 17,500 on income tax. Interestingly, about 70% of tax filers opted for the new tax regime last fiscal.
The CBDT Chairman also ruled out any rethink on the long-term capital gains tax on real estate, which has been lowered to 12.5% from the previous 20%. Although the indexation benefit has been removed, Agarwal believes that this change will be more beneficial to property buyers. He emphasized that the entire issue needs to be seen in the context of property appreciation and ultimate tax liability.
According to Agarwal, the new capital gains tax regime will be beneficial, given the significant appreciation in property rates. Additionally, the rolling over benefit is also available for individuals who sell a property and purchase a new one. He also highlighted that property purchases may become more transparent as people would pay tax at lower rates.
Information
The Central Board of Direct Taxes (CBDT) is the apex authority for direct taxes in India. The CBDT is responsible for the administration of direct taxes, including income tax, wealth tax, and gift tax.
The CBDT is a part of the Department of Revenue, Ministry of Finance, Government of India.
Frequently Asked Questions
What is the deadline for filing income tax returns?
The deadline for filing income tax returns is July 31 for individuals and non-audit cases for the fiscal year 2023-24.
How many income tax returns have been filed as of July 25?
A total of 4.7 crore income tax returns have been filed as of July 25.
What is the benefit of the new income tax regime?
The new income tax regime offers various benefits, including a higher standard deduction of Rs 75,000 crore and higher deduction for family pension, resulting in savings of up to Rs 17,500 on income tax.
What is the long-term capital gains tax on real estate?
The long-term capital gains tax on real estate has been lowered to 12.5% from the previous 20%.
Will property purchases become more transparent?
Yes, property purchases may become more transparent as people would pay tax at lower rates.
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