by Jobuza Team | Mar 29, 2025 | BLOG, Trending News
Income Tax Department to Scrutinize ITR Discrepancies: Impact on Taxpayers Explained
The Income Tax Department will now compare your current year’s Income Tax Return (ITR) with the previous year’s ITR to identify any inconsistencies. This change, introduced through an amendment to Section 143(1) of the Income Tax Act, aims to detect irregularities at the time of ITR processing rather than issuing notices later.
What is Section 143(1) of the Income Tax Act?
Section 143(1) governs the processing of income tax returns after submission and verification. Currently, the department checks for arithmetical errors, incorrect claims, and inconsistencies based on the information provided in the return. The recent amendment extends this scrutiny to compare data from the previous year’s return with the current filing.
How Will the Amendment Impact Taxpayers?
The amendment is designed to minimize future tax notices by addressing discrepancies upfront. Experts believe this will help taxpayers correct errors early and ensure accurate tax filings.
Naveen Wadhwa, Vice President-Research at Taxmann.com, explains that the Income Tax Department will clarify which inconsistencies will be examined. Likely areas of focus include:
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Reported income differences
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Changes in disclosed assets, such as foreign assets or business assets
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Mismatches in carry-forward losses or unabsorbed depreciation
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Discrepancies in audit report details
These checks will only apply to inconsistencies that directly impact the computation of income or loss. For instance, if a taxpayer claims a carry-forward loss in the previous year but fails to include it in the current return, it could trigger an adjustment.
Abhishek Soni, CEO of Tax2win.in, notes that while the amendment will help taxpayers correct errors before receiving notices, clarity is needed on how adjustments will be communicated. The tax department may either notify taxpayers before making changes or adjust the return and inform them afterward. The specific inconsistencies to be flagged during processing versus those requiring a tax notice later are yet to be defined.
Expert Concerns Over Possible Challenges
While many view the amendment as a step toward streamlining tax compliance, some experts have raised concerns.
Hemen Asher, Partner at Bhuta Shah & Co LLP, highlights that Section 143(1) was initially a summary assessment provision allowing basic checks without a full scrutiny assessment. Over the years, additional provisions have expanded its scope, allowing adjustments without requiring a detailed audit.
With the latest amendment, the Central Board of Direct Taxes (CBDT) has broad discretion to define what qualifies as an inconsistency. Asher warns that this could lead to increased adjustments, potentially resulting in disputes. Small businesses and individual taxpayers who do not have dedicated tax advisors may struggle to respond to adjustment notices, leading to summary assessments and prolonged litigation.
When Will the New Law Take Effect?
The amendment is part of the Finance Bill 2025, which has already been passed by the Lok Sabha. Once approved by the Rajya Sabha and signed by the President, it will take effect from April 1, 2025, for the Assessment Year 2025-26. This means that ITRs filed in July 2024 will be compared with the returns filed for the previous year.
Key Takeaways for Taxpayers
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Ensure consistency in reported income, assets, and carry-forward losses.
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Review previous year’s tax return before filing the current year’s ITR.
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Stay updated on the types of inconsistencies that may trigger adjustments.
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Respond promptly to any tax department notices regarding return mismatches.
By staying vigilant and ensuring accurate filings, taxpayers can avoid unnecessary adjustments and potential litigation under the new rules.
by Jobuza Team | Mar 27, 2025 | BLOG, Latest Jobs
UPI Services to Be Deactivated for Certain Mobile Numbers from April 1 – What You Need to Know
UPI Services: To strengthen security and prevent financial fraud, the National Payments Corporation of India (NPCI) has introduced new guidelines that will deactivate certain UPI-linked mobile numbers starting April 1. This move aims to protect users from potential cyber threats linked to inactive or reassigned numbers.
Why Is This Change Happening?
Many users change or deactivate their mobile numbers but forget to update them with their banks. If an old number gets reassigned to a new user, it could lead to unauthorized access and misuse of UPI services. To prevent such risks, banks and payment platforms like Google Pay, PhonePe, and Paytm will start removing inactive numbers from the UPI system.
Who Will Be Affected?
The new rule applies to:
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Users who have changed their mobile number but have not updated it with their bank.
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Users with inactive numbers that have not been used for calls, SMS, or banking alerts for an extended period.
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Users who surrendered their number without updating their bank details.
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Users whose old numbers have been reassigned to someone else.
What Should You Do?
To ensure uninterrupted UPI transactions, follow these steps:
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Make sure your mobile number linked to your bank account is active.
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Check if you are receiving SMS alerts and OTPs from your bank.
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Update your UPI-linked mobile number through net banking, UPI apps, ATMs, or by visiting your bank branch.
How to Reactivate an Inactive Number?
If your UPI-linked number is inactive, update your bank account and UPI ID with your new number as soon as possible. This will help you avoid any disruptions in transactions and ensure secure payments.
With these changes, NPCI aims to enhance the security of UPI transactions and protect users from financial fraud. Take action now to keep your UPI services running smoothly.
by Jobuza Team | Mar 25, 2025 | Apply-Now, Latest Jobs
SBI Yuva for India Fellowship 2025: Apply for a 13-Month Paid Internship
The State Bank of India (SBI) is offering a 13-month paid internship under its prestigious Yuva for India Fellowship for 2025-26. This program provides young professionals with an opportunity to gain hands-on experience in education, healthcare, environmental sustainability, rural development, livelihood, and social innovation while working in rural communities.
Fellowship Benefits: What Selected Candidates Will Get
Candidates selected for the SBI Yuva for India Fellowship will receive:
- Monthly stipend of ₹16,000
- Project expenses and travel allowance
- Readjustment allowance after program completion
- Insurance cover and housing assistance
- Completion certificate from SBI
Eligibility Criteria: Who Can Apply?
To apply for this paid internship, candidates must meet the following criteria:
- Must have completed graduation by October 1, 2025
- Age should be between 21 and 32 years
- Open to Indian citizens, Overseas Citizens of India (OCI), and citizens of Nepal or Bhutan
- Willingness to stay and work in rural areas alongside local communities
This fellowship aims to engage youth in solving real-life challenges in rural India while promoting social innovation and sustainable development.
Application Process: How to Apply?
Interested candidates can apply online by following these steps:
- Visit the official website: youthforindia.org
- Click on “Apply” and fill out the application form
- Upload necessary documents and complete the application fee payment
- Submit the form and download the confirmation page
Selection Process: What to Expect?
The selection process includes:
- Online Application – Fill out and submit the application form
- Online Assessment – Share your story, ideas, and reasons for joining the fellowship
- Personal Interview – Shortlisted candidates will be interviewed
- Final Selection – Based on performance in the assessment and interview
Why Apply for the SBI Yuva for India Fellowship?
This paid internship is an excellent opportunity for young professionals looking to:
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Make a real impact by working on rural development projects
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Gain leadership experience and practical skills in community-driven initiatives
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Enhance their career with hands-on experience in social innovation
Through this program, young changemakers can contribute to India’s sustainable development goals while building a strong foundation for their professional journey.
Apply now and become a part of India’s social transformation!
by Jobuza Team | Mar 20, 2025 | BLOG, Trending News
New Tax Regime: How Income Up to ₹12.76 Lakh Attracts Just ₹1,000 Tax
Major Tax Relief in Budget 2025
Income Tax Alert: The Indian government has introduced a significant tax relief under the New Tax Regime, making income up to ₹12 lakh tax-free. This is a major jump from the previous limit of ₹7 lakh, where taxpayers benefited from a ₹25,000 rebate under Section 87A. With the new update, the rebate has been increased to ₹60,000, allowing taxpayers to save even more.
This announcement has been seen as a historic move for the middle class. While it is expected to add an additional burden of ₹1 lakh crore annually to the government treasury, the amount saved by taxpayers is likely to boost spending and improve liquidity in the economy.
New Tax Slab for 2025
The Finance Minister has introduced revised income tax slabs for the upcoming financial year. Here’s the new structure:
- ₹0 – ₹4 lakh: 0% tax
- ₹4 – ₹8 lakh: 5% tax
- ₹8 – ₹12 lakh: 10% tax
- ₹12 – ₹16 lakh: 15% tax
- ₹16 – ₹20 lakh: 20% tax
- ₹20 – ₹24 lakh: 25% tax
- Above ₹24 lakh: 30% tax
In addition to this, salaried individuals will continue to enjoy a standard deduction of ₹75,000 under the new regime. This effectively makes income up to ₹12.75 lakh completely tax-free.
Why ₹12.76 Lakh Income Attracts ₹1,000 Tax
A unique situation arises when an individual’s income crosses ₹12.75 lakh by just ₹1,000. Here’s why:
- If the income is ₹12.75 lakh, no tax is payable due to the rebate and standard deduction.
- However, if the income increases to ₹12.76 lakh, it falls under the 15% tax slab, leading to a tax liability of ₹62,556.
- This seems unfair, as the tax jumps significantly for just a ₹1,000 increase in income.
To address such issues, the Marginal Relief Rule comes into play.
What is Marginal Relief?
Marginal relief ensures that taxpayers do not face an unreasonable tax jump due to a small increase in income. Under this rule, taxpayers will pay whichever is lower between:
- The incremental income (extra income beyond ₹12.75 lakh)
- The calculated income tax liability
For example:
- A taxpayer earning ₹12.76 lakh will pay just ₹1,000 as tax, instead of ₹62,556.
- Someone with ₹13 lakh income will pay ₹25,000 tax instead of a higher amount.
- If the income is ₹13.25 lakh, the tax payable will be just ₹50.
This relief applies until the gap between incremental income and tax liability becomes zero. Beyond this point, full tax is applicable as per the slab rates.
What This Means for Taxpayers
The Income Tax Alert for New Tax Regime for 2025 brings substantial benefits, especially for those earning up to ₹12.75 lakh. The introduction of marginal relief ensures fair taxation and prevents disproportionate tax jumps.
With these changes, taxpayers will have more disposable income, boosting spending power and overall economic growth. If you fall within this income bracket, it’s time to recalculate your tax savings and plan your finances accordingly.
by Jobuza Team | Mar 19, 2025 | BLOG, Trending News
7th Pay Commission: Central Government Employees Likely to Get DA Hike Soon
7th Pay Commission: Central government employees eagerly awaiting an increase in their Dearness Allowance (DA) may receive good news soon. Reports indicate that a final decision on the DA hike is expected during the upcoming Cabinet meeting, chaired by Prime Minister Narendra Modi. These meetings are typically scheduled on Wednesdays.
Expected DA Hike for Government Employees
According to sources, the government is likely to announce a 2% increase in DA, raising it from 53% to 55%. The Dearness Allowance is revised twice a year to help employees manage rising inflation. It is a key component of their take-home salary and is calculated as a percentage of the basic pay.
For example, if an employee has a base pay of ₹1 lakh, a DA of 55% would translate to ₹55,000. This adjustment ensures that salaries keep pace with inflation and cost-of-living changes.
Impact of the DA Hike on Salaries
A 2% increase in DA will provide financial relief to employees across various pay levels.
- An entry-level Multi-Tasking Staff (MTS) employee with a basic pay of ₹18,000 currently receives ₹9,540 as DA (53%).
- With the proposed 2% hike, the DA would increase to ₹9,900, adding ₹360 to their salary.
- If the hike were 3%, the DA would rise to ₹10,080, adding ₹540 instead.
This increase in DA will be effective from January 1, 2025. Employees will receive arrears based on the additional amount they are entitled to from the start of the year.
Previous DA Hike and Future Expectations
The last revision in July 2024 saw a 3% hike, raising DA from 50% to 53%. The upcoming increase will further boost salaries, benefiting thousands of government employees and pensioners.
For pensioners, the hike in DA is referred to as Dearness Relief (DR), ensuring that retirees also receive financial benefits in line with inflation adjustments.
With the final decision expected soon, government employees can look forward to an official announcement that will positively impact their earnings.
by Jobuza Team | Mar 18, 2025 | BLOG, Trending News
Union Budget 2025: Key TDS Rule Changes Effective from April 1
The Union Budget 2025 has introduced significant changes to Tax Deducted at Source (TDS) rules, set to take effect from April 1, 2025. These updates aim to provide financial relief to senior citizens, depositors, investors, and commission earners.
Here’s a breakdown of the major changes:
1. Higher TDS Threshold for Senior Citizens
To benefit senior citizens, the government has doubled the TDS threshold on interest income. Starting April 1, 2025, banks will deduct TDS only if a senior citizen’s total interest income exceeds ₹1 lakh per financial year.
This means if their interest earnings from fixed deposits (FDs), recurring deposits (RDs), or other savings instruments stay within ₹1 lakh, no TDS will be deducted.
2. Higher TDS Limit for General Citizens
For other depositors, the TDS threshold on interest income has been raised from ₹40,000 to ₹50,000. If total interest earnings remain within ₹50,000, no TDS will be deducted. This change will benefit individuals who rely on FD interest as a source of income.
3. Revised TDS Rules on Lottery Winnings
Previously, TDS was deducted if total lottery winnings in a year exceeded ₹10,000, even if received in smaller amounts. Now, TDS will be deducted only if a single transaction exceeds ₹10,000.
4. Higher TDS Limit for Insurance Commission Earners
Insurance agents and brokers will see some relief, as the TDS threshold for insurance commissions has been increased from ₹15,000 to ₹20,000. This change will help them retain more of their earnings.
5. Increased TDS Exemption for Mutual Funds and Stocks
Investors in mutual funds and stocks will now benefit from a higher TDS exemption on dividend income. The threshold has been raised from ₹5,000 to ₹10,000, allowing investors to keep more of their earnings.
Final Thoughts
These updates aim to reduce the tax burden on depositors, investors, and commission earners while simplifying the tax deduction process. With these new thresholds, individuals can enjoy higher tax-free earnings on their savings and investments.
Keep these changes in mind as you plan your finances for the next financial year.
