Sudhir Kaushik of Taxspanner.com tells readers how they can optimise their tax by rejigging their income and investments.

The Income-Tax Appellate Tribunal’s (ITAT) Mumbai bench recently held that the rental compensation received from a builder due to a redevelopment project is not taxable in the hands of the former flat owner. ITAT adopted this stand even as the taxpayer, the former flat owner, had not taken another accommodation on rent but had moved in with his parents.

The income tax return forms were notified by the Central Board of Direct Taxes (CBDT) in the February 2023, well after Budget 2023. This was a departure from norm of notifying the ITR forms in April. Though the forms are notified, the ITR cannot be filed by an individual or any other taxpayer till utility form or online forms are enabled on the e-filing income tax portal.

Till FY 2020-21, an individual can claim the donation on the basis of the donation receipts at the time of filing income tax return (ITR). However, from FY 2021-22 onwards, the donation can claim be claimed only if an individual enters donation certificate details in the income tax return form. Without the certificate, an individual cannot claim Section 80G deduction.

In the month of April, a salaried employee is required to communicate about the preferred tax regime option to their employers. As Budget 2023, has announced many changes under the income tax laws. This makes it important for salaried employees to analyse both the income tax regime and then communicate the same to the employer.

The Mahila Samman Savings Certificate (MSSC) was officially launched on April 1, 2023, and there are currently 1.59 lakh post offices that offer it.

Submit Form 15G or 15H to avoid TDS on interest income. Form 15G is for those who are younger than 60, and Form 15H is for those who are older than 60.

The Budget 2023 has made changes under the income tax laws, that have an impact on how tax will be deducted from the salary income by an employer. From April 1, 2023, the new tax regime has become a default tax regime. Thus, if no tax regime is communicated, then employer will cut tax on the basis of new tax regime.

If the dividends from equity shares and mutual funds exceed threshold in a financial year, then TDS is applicable on them. However, it may happen that there is no taxable income or tax payable by an individual in a particular financial year. In such a case, how can an individual avoid TDS on dividend income.