Best Income Tax Saving Advice | 200% Penalty if you do UPI transactions like this with live proof 🔥

0:03 Why are the deadlines being extended this time? Why is it being delayed so much? The reason for this is that if Sai is taken care of in other countries, health- related benefits will come, children's education-related benefits will come. If we are caught anywhere, we will get a penalty and can collect interest. That is not their objective. I remember you very well last time, sir. You alerted me in the last video. The problem is that their intention may be in an automated system, whether it is AI or something . The reason for increasing the slab rate in this new tax return is to identify what other mistakes are being made this time and how they can be overcome. What

0:50 everyone here needs to know is that sir, I'm listening to this a lot this time. Have you seen any such incidents? If so, can you share one or two examples with the viewers? There is a live example. Okay, I'll tell you that. Sir, another piece of advice that has been heard a lot recently is that we need this kind of advice because we make mistakes knowingly or unknowingly and then face difficulties. If only they had received proper advice like this before, they would have been safe and not made those mistakes . [Music] Hi guys, welcome to Money Purse. Let's learn something new today. Tax filing

1:35 time has arrived and you'll be getting heaps of tax saving-related advice from us. Now the problem here is that the impact of a small mistake we make in tax filing can be very heavy on us. And if you remember, we previously interviewed Suresh Sarni a couple of times on our channel. Sir, you alerted us in advance that many people are filing taxes related to political funding and claiming that they should not do so. You alerted our viewers in advance and in the last one year, we have seen the Income Tax Department imposing penalties on many employees who made such claims and related newspaper articles. We have been seeing all these. Now again, there are many changes and you

2:22 can save various loopholes related to tax filing this way and that way, and there are many advices that you like on social media. While some of this is sound advice, it doesn't work for everyone. So how do we do tax planning the right way and what is the right tax-related advice? So many people think that advice is all it means here. If you look at social media, you will see commercial videos everywhere you look . I'm saying in advance that I have no commercial interest in all disclosures here . We have interviewed Sir many times before . You won't find any contact details of Sir anywhere . Okay, the only thing is that whoever our viewers are, being one of our followers, loves to contribute to the society. So, previously, sir, you gave us that time

3:07 and now, too, we have such wrong advice circulating in the market, many people are becoming victims and we are already seeing various cases. We are going to talk about those cases as well. So that you understand that practical issues like this happen, so you will get proper advice about all this without any bias in this video. Thank you sir. Thank you for accepting our invitation. I am almost following you. I apologize for taking your time when you are busy. I am really sorry for the delay. Sir. Very happy to come back to your channel. Thank you sir. Thank you sir. First question. Why are you extending the deadlines this time? Why is it being delayed so much? The reason for this is that they are asking for a lot of details in the Sata form. This time,

3:53 okay. I saw a form detail. Salaries. For example, let's go to the old resume and claim 80C like LIC. A pop-up will appear as soon as you enter the amount, saying "Premium Under 8, You Are Allowed 1,50,000 1,50,000." Now, you will have to provide all the details like the name of the insurance company, policy number, receipt number, etc. This means that if there is any wrong claim, cross-verification becomes easy for them . Okay, so far, there have been cases where I have given some details . It's not even possible to give a single letter.

4:39 Even if you give, you will get it. Correct, they are asking in detail, but in all forms, there will be a major delay about that. Sir, I feel that the reason for asking in such detail is that if we have observed for the last five or six years, claiming tax refunds means that if we really have a genuine refund, there is nothing wrong in claiming it, but claiming a refund without it is more. There is a reason for that. There is a pain for the taxpayer when paying taxes. Hey, I am paying taxes, what benefit do I get? If you look at other countries, you get health-related benefits, children's education- related benefits, and you get a pain saying that we can't get them here. So, as soon as someone says, "We will give you a tax refund," you immediately fall into that trap. And these refund

5:26 claims are increasing. But the problem is that you, I remember very well in the last video, warned that political funding could be related. You are doing all this and saying that it could be a problem related to these. And in the last one and a half years, we are seeing that problem. You already have good connections in the Income Tax Department. You will know in advance that situations like this are happening this time and what kind of mistakes are being made and what kind of things can be overcome related to them. These claims have not stopped for a single moment. Even the Income Tax Department has no interest in litigation. Oh, if we catch them, we will get a penalty and we can collect interest. That's not their objective,

6:12 okay? The proof of that is that now there is an updated return . Yes, we can correct our mistakes and file returns for four years. Now, the year will be over on March 31st. We are filing the return within December. We may have made a mistake while filing the return . Um, let's say we found out about the mistake after December 31st, so we can file an updated return. Hmm, why is this to avoid a penalty? If they bring it up for scrutiny again and find out, they will impose a penalty. This updated return was previously filed for two years. Okay, now its term has been extended to four years . Oh, okay, that means that the department has

6:58 found errors in the four years of filing and has given us the option to file an updated return, so they are telling us to correct them. That's how we know, right? They don't have this with penalties and interests . Um, but in that updated return, they gave various benefits, such as 125% if you file in the first year, 150% if you file in the second year . Um, what it means is that if you pay another 50% more in tax than you pay after the penalty, your return will be accepted and closed. Basically, it means that otherwise, you will do it in the fourth year itself. Many people are saying, "Correct your mistakes yourself." Okay, okay, that's it, sir. One more thing, this time they are asking for details in the filing.

7:44 So here too, many people know that you can make mistakes. Instead of a policy, you have to input those other numbers. If there is a possibility of doing such things, such advice is also given. If okay, if someone makes a mistake, okay, do you find any mechanism, they say that there is a mechanism to cross-check with the IT department. Do you think they billed everything, so there may be a delay. Now we have 100 insurance companies. After we filed all the returns, they said that it was all ETC, all this is one matrix, ETC, the health insurance policy details, they can create an Excel sheet

8:32 for one company and send it to them and say, "You confirm whether these payments are correct or not, please validate this data." That was a bit embarrassing for that insurance company too, but when they found out, they said, "They sent 100 to 10 percent of them, and 10 percent of them said, "These are wrong, we did not give these people policies." They will scrutinize it. After receiving the scrutiny notice, I took an example of your policy details and attached it. Um, I can't prove from my bank statement that I didn't pay, so again, there's a penalty interest of three times the penalty.

9:20 Um, it's been two years since the screw was processed . This will incur interest over two years . Correct one and a half to two years means we will receive a notice within six months from the date we file the return. The scrutiny should be completed within nine months of the hearing . So we've been paying interest all this time . Hmm, maybe their intention is to compile and cross-verify the data in an automated system, whether it's EAI or something. Sir, you have given fantastic clarity and one thing, Gaius, this is a tax filing related advice video, that is, what mistakes should we not make and what mistakes are

10:06 being made, what wrong advisors are circulating on social media and how to follow the process properly so that we do not fall into their trap. Anyone can make a video on income tax returns, all these forms are getting a lot of changes, so if you want a video on how to easily file online based on those changes, tell me in the comment section below and I will record a separate video and upload it. If anyone is interested based on those latest details, please comment below saying "Interested for Income Tax Returns" . And also, your friends and family may be giving you the wrong advice, saying they will give you income tax refunds. Be sure to share this video so that they don't get stuck in such problems without even knowing it. So let's not only try to be safe ourselves, but also to keep the environment around us safe

10:53 . And if you liked the information shared in the video, be sure to like the video. If this is your first time visiting the channel, subscribe to our Money Purse channel and activate all notifications by clicking the bell icon next to it to make sure you don't miss out on videos like this . Sir, this time I am hearing this more. Last time we received more notices related to HRA than political refunds. But this time I am hearing that more notices are being sent related to HRA claims. Have you seen any such incidents? If so, can you share one or two examples with viewers? There are many such buffaloes, Sai. There is a live example of this . Okay, I'll tell you what happens now, if the rent is more than 50,000, TDS has to be paid . They are filing returns without paying TDS every month . Why is TDS not being paid? He will get a notice after filing because his claim is fake

11:40 . I have received a notice that you have not paid TDS and here is another one Dear Tax Payer It is observed that you have claimed an extension for HR under so and so section of 756000 for the assessment year 2425 However, the notice has been deducted on the rent paid It is requested that the claim may be verified and any mistake if found may be rectified by filing an updated return There are two issues in this, one is that TDS was not deducted here because the person on whose PAN it was detected does not have a PAN number. But if he uploads a return with a PAN, the person for whom he entered the PAN number will be given a notice. So-and-so asks if

12:26 this is true and he replies that it is not. When he files his updated return again, he thinks that it is a TDS and files it, but the TDS is lost here and the deduction is lost there. Because whoever gave the PAN number will take it and refuse it, saying that he did not take the rent and did not take the rent, this is what the HRA deduction is for him. So, even if HRA makes a wrong claim, that's why we changed the return form. This is also important. Providing a genuine PAN number and claiming genuine rent payment is very, very important. Whatever happens in this, if any mistakes are made, the

13:12 employer is given a notice. What is the employer taking a declaration for? The employer simply takes the PAN number of the person to whom the rent was paid and gives those details. Again, the same PAN number is given and the PAN sends him a notice saying that you took two and did not take them. So all false claims are okay, so now notices like this are going out more and more, so be a little careful while making HRA claims, guys, be very, very careful and try to input proper data while inputting data . And I know there is another problem here, sir. Many property owners also say that they want to evade income tax related and they are not willing to give PAN. Many there are not willing to give PAN. They say that they will take rent and not give my PAN.

13:59 He will give you the PAN knowing that, but he has to verify it. I rented. You don't get it when he says he didn't take it. He may have taken the rent in cash . What everyone needs to know here is that whoever pays in cash will not show it anywhere. If you intend to claim, you should transfer it online. If you pay in cash, you cannot prove that I did not take the rent. You cannot prove it. Correctly, I paid online and also took PAN and insisted on the landlord. If I do not intend to claim PAN rent, I can agree to his demands. What happens now is that we

14:44 find it in the area we want, okay, let's take it, we're giving you some cash, we can find some PAN and put it in. They didn't know about this cross verification at that time. Only after that scrutiny will they understand, and they will have total understanding, but then it's over, time is up, and they will get into trouble. So, it is very important to claim anything by giving correct details. Another advice that is being heard a lot recently is that employees should be converted under the category of professionals and they should claim 50% tax benefit under Section 44AD . This means that many people in higher income slabs are also requesting this from their employees and converting them. But there are some complications here, sir. Actually, you know better than I can explain,

15:31 so try to educate your viewers a little bit, because many people are getting caught up in this false advice, even if it works properly to some extent, but they don't know how to implement it the right way . So what are the issues that come up in this and where will they create problems for you? What is Section 44 AD? What does it mean? It is basically applicable to professionals. There is a list of professionals like doctors, chartered accountants, engineers, etc., which is given in the Income Tax . This applies to those on that list . In that case, the gross income should be less than 50 lakhs. If it is less than 50 lakhs, it

16:16 will not apply. Um, when the income tax is less than 50 lakhs, what is the minimum tax you can pay on your 50% of your grocery seats? What does minimum tax mean? The remaining 50% is what I spent on my profession as expenses. What happens now? Everyone is advising that it is enough to declare this 50% claim . That's right, they're going down the wrong path there. Let's discuss why this happens by taking an example. What is Sai? Let's say we have taken a gross income of 40 lakhs. What this income tax means is that 50% of the gross

17:02 income will be 50 lakhs and should not be more than 50 lakhs . We have taken an example of 40 lakhs. We are taking 40 locks and paying tax on 20 locks . Let's say 20 lacs means 2 lacs. If we subtract 2 lacs from the tax of 40 lacs, we are left with 38 lakhs. Subtracting our household expenses of Rs. 3 lakhs, we are left with Rs. 35 lakhs per month, which we are happily investing in fixed deposits and mutual funds. Um, we have told income tax how much income is 40 lakhs. What you need to understand here is that our investments each year investment increases in investment should be either maturity proceeds of earlier investments plus tax paid money or tax free money. Now there is no tax on 125 in capital gain,

17:49 right? It can go back into investment. In this way, if we make tax paid money tax free money, our tax paid money here is actually 18 lakhs because we paid tax on 20 lakhs. 2 lakhs tax is 18 lakhs and 3 lakhs if we deduct household expenses, 15 lakhs. We should have gone to mutual funds, 15 lakhs. If we take this example here, it will be 35 lakhs. What happens to us is that the income tax return is called SFT. Information will be sent to them about what happened to more than 2 lakh investments this year . Umm, when everything we have goes, how much will we get in total? 35 lakhs. We will receive an immediate notice. They pick it up for scrutiny as soon as they see something like this . Correct, the problem here is that sir, that 50% that is being claimed as an exemption is

18:36 actually an expense, that is, an expense that makes it impossible to maintain the books. So, the reason there is a waste of books is that there is no need to maintain the books . But your income and investment should be less than 20 lakhs. What do we all think? I think we are complying with the law . But what they don't understand is that we now have a correct example . 20 Now, if we take this example again, we have these 40 lakhs as our actual expenses, our salaries, but let's take 10 lakhs as the given amount, 30 lakhs as tax, we have to show only 30 lakhs for income tax.

19:23 Suppose we use a depreciating vehicle out of the 30 lakhs plus, and if we deduct that depreciation interest, it will be another 2 lakhs, so we have to pay tax on 28 lakhs. That is the correct method. If our expenses are 25 lakhs, if we show 20 lakhs and pay tax, we have to maintain the books, then our expenses are only 15 lakhs. If we show 20 lakhs and do not maintain the books, then you have investments. Where did these come from? You have to file a return saying that 20 lakhs has been spent. Correct, where did this 5 lakhs come from? There is a difference of 20 lakhs. The question arises as to where did this 20 lakhs come from. That's right, when we give them an explanation again, we can't give them a correct answer. Obviously, it cannot be given. It is not in the account. It is in the account.

20:08 That means there is money. There are no expenses. There are no expenses. The cost of making expenses is only incurred if we withdraw it from the bank . After withdrawing money from the bank and spending it, we shouldn't have any money left over for investments, but in this situation, it seems like we have some left over. It seemed to show that it was spent without spending. The same penalty will come again and again, all the things they talked about . Gaius, remember the same as all those who are claiming 44 AD. So, if there are some important things like this, keep these in mind and file them in the proper way and utilize that section. There is another thing in this, Sai, it is called 44 AD, not 44 ADA. Those who are not professionals, just show 8% of their business. If it shows 8% instead of 50%, it means that 92% of it

20:56 should be spent. Um, now the grocery store people can't maintain their books. They must have built a house like this . If we see something very troubling for us today and tomorrow, like Tiffin Centers, UP, UPI, Pembers, let's talk about that too . So 44AD and 44ADA both come under the same umbrella. These precautions should be taken while filing. Be careful with your expenses. If you invest more than you show as expenses, you may run into problems. You may not have more money left in the bank, fixed deposit, or mutual fund that year

21:41 . Sir, you said UPI related, right? Are you looking at cases related to UP transactions? Have you come across any such cases? And many people, in fact, now even business people watch our videos. Why are business people saying that they can be housewives, students, and get cashbacks? They are making UPI related transactions a nightmare . This way, you will understand what typical cases come to you, if you give an example of what is being said . Speaking on this subject, Sai said that there are one, two, three epidemics in the coming period. They are, as you said, UPI payments, credit card transactions, credit card transactions, and what is this cashback in these credit card transactions? What is the

22:27 biggest epidemic of these, what are they doing for cashback? Your transaction is also on my credit card, your transaction is on my credit card, correct, I am taking cashback and enjoying it. But what if this SFT has to be filed annually? All banks and companies, including credit card payments, have a limit of 10 lakhs, and 2 lakhs for each, and 10 lakhs for each, and it reports it. All these transactions are for cashback. What is his salary? It is 15 lakhs. He is spending 10 lakhs to 20 lakhs on a credit card . Um, left, right, and center, it says where did you pay for this, but when I

23:15 put it on my credit card, they give me cash. We don't want to put that cash in the bank . We are spending it. Suppose they deposit it in a bank account, sir. If it reaches 3 lakhs, it will send a notification to the Income Tax . I see another problem here . Overall, if you think that a year has passed 20 years, then you have to collect GST, right? That's why you have remembered GST well . So far, we have talked about 44% of salaries, yes, those with salaries of 40 lakhs and 50 lakhs are coming under this consultation. They will have to register for GST first . In our Telangana, the GST limit threshold is 20 lakhs. Gross receipts are above 20 lakhs. We have talked about a limit of 50 lakhs. So, it is more than 20 lakhs. First,

24:02 what is the GST? GST returns should be filed every month . We need to maintain records for GST compliance . This is also an extra compliance we must be careful of. There's no problem if you do everything legally. This coming back to UPI payments is happening because even salaried employees are using UPI, Eagle Pay, Cash Pay, and all of these. When I was using these, the people who were responsible for the money that came into our bank were right. Who did they come from? Now I will give you a check sometime, and you returned it to me on PhonePe. I need to link these two and make a note. That is not income. There is no need to pay tax on it. But the record should be there.

24:48 But recently, a case came to my attention . Now if you look, there are too many defense centers on every street . Yes, he puts a scanner there. To go first in this, the person has to apply for PAN to get that scanner. Basically, he may not have any income before he starts that business, but he takes a PAN. He gives the PAN number, gives the PAN card, the bank gives him a scanner, scans it and adds every payment received to his PAN account. The details are run by his Tiffen Center and he shows the amount he showed in the return, which is 20 lakhs. He got a notice. There are 70 lakh total UPI payments under your PAN. You

25:34 showed 20 lakhs, what is your answer for the remaining 50 lakhs ? So now, for every UPI payment, all these are salary income, but when we look at the UPI transaction, we think that there are 10 lakhs to 20 lakhs. That's right, we are using it very easily. We use it. It's a facility, but for that, the statement is issued every 15 days of every month. What is this? Why did it give this? Why did it come? In most of the cases, we will have transferred it to you in Funpay and then you will have transferred it yourself. He asks me what you gave me . He asks you what I gave you. Suppose we are not linked, you have to pay tax on what I gave you, and I have to pay tax on what you gave me. That's

26:20 right, it already gave you the tax exemption . Yes, you are giving me back the tax refund . You will have to pay tax on it again . Why weren't our records maintained properly? So, for UPI payments, it is very important to keep a record of every transaction, whether it is a payment made by phone. Okay, not just that, but now cash deposits are coming in. Now housewives are given 50,000 to 75,000 for household expenses. What are they doing? They are taking it and putting it in the bank. Because if you stay at home, the cost will be covered because they are paying through PhonePe instead of depositing it in the bank . If he deposits it in a bank account, there's no problem. Suppose when this bank deposits it, it exceeds 3 lakhs, and that

27:05 information goes to the department . Suppose it exceeds 10 lakhs, we will receive a direct notice. When it goes on demand for three lakhs, we can ignore it because our salary, our transactions, withdrawals, they are visible. So, suppose you deposited 3 lakhs and it crosses 10 lakhs, you will get a notice. What did one do? He started to deposit money in the bank without his father knowing that his father was saving money at home . This is a case I handled myself, and he paid 12 lakhs in taxes on all of them. High profile, this is his, all this is happening. We have many such examples to talk about. Be very careful when depositing cash. Everyone is using the term black money and white money in our real estate transactions . They

27:51 think this is legal. They say it came in cash and I deposited it in the bank. It should not be thrown away. Yes, first of all, you should not transact in cash in properties. Sir, so far we have actually talked about the mistakes we make related to tax filing and related advice . Thank you, because we need this kind of advice because we make mistakes and then we face problems. It would be better if we had received proper advice like this before, so that they would have been safe from making those mistakes. Now I will come to the tax planning part, sir. It was different before, but this year we have completely changed a lot . The new tax regime has been made very attractive. The Government of India has increased the slabs for us a lot. So let's

28:36 come to the tax planning part. Sir, this time clearly I know that the new tax will be much bigger beneficial for us compared to the old tax regime. But in this new tax too, sir, those deductions will not be there. However, apart from the standard deduction, there are other deductions where the employee can benefit. Sir, this time, I think the reason for increasing the slab rate in this new tax regime is that the old tax will be removed next year or the year after. All old taxes and deductions will not continue. Even if they do, they make it unattractive to those who take it . That's all, they've already done it. This time there is no tax up to 12 lakhs. There is

29:22 no tax up to 12.75% of the salary after taking the standard deduction. Apart from this, there is a tax benefit for NPS contribution under 80CCD in the new regime. That's the only benefit I know of under the new tax regime. Considering this, what we should tell everyone is that by moving to the new tax regime, it is very simple in filing the return. The problems we have talked about so far do not arise. Because we are not claiming deductions, there is no need to give false details, and none of this will happen. If you file it straight away in the new regime, it's a simple return, no data policy number, no problem with having to provide it, no need to take someone's policy number and

30:08 file it, it will be very neat if you do it in a structured manner. There is nothing embarrassing. Sir, this is another thing about simplifying. Let's say for example, we have a standard deduction of 75000, 12 lakhs plus 75 12 75. Let's say there is an employee in a 15 lakh package. Since he now has 15 lakhs, his entire amount will come under tax laws. So, if the employer requests it and deducts the NPS employer contribution part and brings it to 1275, he can save a lot of tax. That's what I said. You have brought that clarity. That's okay guys, this one is try to request whoever your employer

30:53 is . Many of those who are in the 15, 16, and 17-digit bracket are also struggling, saying, "Oh, I have to pay unnecessary taxes." If you request this from your employer, most employers will accommodate this . If you make that accommodation, you will benefit greatly . And finally, sir, okay, tax advice related, planning related, anything else you want to talk to the viewers about? Every time we file a return, we file AIS, TIS, 26 AS, as expected last time. It is very important that we download ours from the Income Tax website, reconcile it and file it. We

31:39 talked about the same in the previous video. If we file a return without considering all the correct information that they have provided to us, our return will be incorrect. Okay, let's make a file and the only thing I can say about this is that even if good things happen to us in our daily lives, we don't see it. But if something bad happens, it seems like it's hitting us . Um, let's tell this as a story, so let's put that income tax aside and take two people. Um, someone doesn't have any habits. A very straight forward guy who

32:24 goes and gets his checkup done every year. He has all the same habits as the other guy. He goes to get checked out to see if he's stressed or something. Everything he does reveals to us: high blood pressure, high sugar, high levels of that level, high levels of this level . Someone who is not used to it will get a clean report. Generally, anyone who has complied with everything, claimed correctly, and filed a return will receive a clean assessment even after scrutiny. The person who made the false claim should also suffer from their assessment of what the diagnostic report looks like, which is not their habit. This is what I can say,

33:10 what did Babu sir say? If you compare it with the diagnostic report, then apart from this, there is another thing that is the conclusion to everything I have said now. What I am saying is that can we erase the birthmarks on our body? It is impossible. The birthmarks on our body are like our bank transactions, the payments we have made from our bank, all the birthmarks related to us may not be on our body, but they are related to our income tax return. Most likely, they are all birthmarks. Let us talk about that. Let it be UPI payments, whether it is checks given to us by someone, or what we have given to others. It is

34:00 very important for us to write down the details of all these. If there are any of these that we cannot explain, we can show them as income and pay the tax return. But you will remember the tension you feel when you make false claims, file your income tax return, and get a notice that is wrong for the rest of your life . That's not normal tension. I tell everyone who comes to me that if you pay taxes today, you will forget tomorrow because you only have as much money as you have. If you give it away, you will forget that it is yours. So don't make false claims. It will come out anytime. This government, especially in that direction, is changing all their systems. If

34:46 not today, it will definitely come out tomorrow. Only your persistence will reveal the truth. The truth is that if we claim something and make a false claim, it will come out and be known that it is not true. Sai says this is an education channel so that you can file your return correctly without facing any such problems. Therefore, I am telling you all this conclusion because today I will be talking specifically about filing my return. Why did I have this discussion with Sai? You should know how the problems arise. Fantastic sir, you have concluded very well . This is okay guys, your friends and family may also be making similar mistakes while filing their income tax returns and

35:34 may be getting wrong advice. Be sure to share this video with your friends and family as well . Try to keep not only yourself safe, but also those around you safe . And if you liked the video, like the video and this is your first time visiting the channel, be sure to subscribe to our Money Parts channel and activate all notifications by clicking the bell icon next to it. I am Sai Krishna Patri and I am coming to you with another good video Till Then Boy Boy Take Care