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Latest Procedure for Verification and Scrutiny of Service Tax Returns.

The CBEC vide its circular no 185/4/2015 dated 30th June 2015 has revised the procedure for scrutiny of the service tax returns. This is a step towards ensuring whether the self­assessment carried out by the assessees is in line with the provisions of the prevailing service tax law. A two fold procedure has been prescribed which consists of an online scrutiny of all the service tax returns and a detailed manual scrutiny of the returns of select assessees. The new procedure shall be applicable with effect from 1st August 2015. A brief about the new procedure is as below.

Online Scrutiny

  • It shall be carried out for all the returns without exception.
  • Purpose / Coverage of Online Scrutiny
  • Arithmetic checks of the tax calculation.
  • Timely compliance in terms of payments made and filing of returns.
  • Ensuring completeness of the information furnished.
  • Identification of Non­filers and Stop­filers.
  • The online scrutiny is carried out by ACES and the returns containing any errors shall be marked for review and correction by the range officers.

Detailed Manual Scrutiny (“DMS”)

  • Applicable from F.Y. 2014 ­15 and onwards and will be carried out on a yearly basis.
  • Assessee Selection Criteria
  • Tax Paid (Cash + Cenvat) should be less than Rs. 50 Lacs. The Chief Commissioner may select assessee with tax paid more than 50 Lacs in certain cases.
  • Equal number of assessees shall be selected in each of the three bands based on the quantum of service tax payments viz. up to 10 Lacs, 10 ­ 25 Lacs and 25 – 50 Lacs.
  • Assessees selected for audit in the past three years shall not be selected for DMS.
  • An assessee cannot be subjected to both Audit and DMS.

Purpose / Coverage of DMS

  • Taxability of Services, whether all taxable services covered, including taxability as per reverse charge mechanism.
  • Valuation of services as per valuation rules.
  • Appropriateness of Abatements, Exemptions and Tax Rates.
  • Appropriateness of Cenvat Credit.
  • Detailed reconciliation with the Income Tax Return (ITR) and Records.

Process and level of verification.

  • The scrutiny will be carried out at the Range office. No visits to the assessee premises.
  • 15 days intimation to be given to the assessee before initiating the DMS process.
  • The data as per the service tax returns and the income tax returns shall be compiled and analysed for the past three years viz. FY 2012 – 13 to FY 2014 ­15. This is to facilitate a better understanding of the details of the assessee by the assessing officer. This shall be done by referring to the service tax returns and income tax returns filed by the assessee.
  • Sample invoices, debit / credit notes, agreements and any other relevant documents shall be verified for determining the taxability and valuation of service.
  • Whether Service tax liability on reverse charge has been discharged appropriately.
  • The abatements and exemptions claimed, if any, are after fulfilling the prescribed conditions.
  • The eligibility and availment of cenvat credit, with specific reference to Rule 6 of the cenvat credit rules shall be verified. (Rule 6 applies in a case where the assessee is a provider of both taxable services as well as exempted service)
  • Appropriate applicability of the various rules, for eg. The place of provision rules to check the export of services.
  • Every possible aspect of the service tax return shall be reconciled with the information furnished in the income tax return. Some areas are indicated below:
  1. Total amount of output service provided with the total revenue as per ITR.
  2. Category wise classification of output service shall be broadly linked with the section under which TDS has been deducted as per the Form 26AS. An indicative list correlating the service categories with the TDS sections is given in annexure III to the above referred circular.
  3. Payments made in foreign currency as appearing in ITR along with service tax paid on import of services. (Eg. Legal and professional expenses incurred in foreign currency are required to be disclosed separately in the ITR)
  4. Certain expense heads in the ITR which prima facie appears to be of the nature of services covered under the reverse charge mechanism along with the service tax paid on reverse charge basis. (Eg. Freight expense may get covered under reverse charge provisions of transport of goods by road service)
  5. Reconciliation of tax amounts – both output tax collected and input credit claimed.
  6. Advances received from the customers as appearing as a liability in ITR and whether service tax has been paid on the same.
Time Limits

  • The intimation letters for FY 2014 – 15 shall be issued by the 15th July 2015 and the DMS process shall be initiated by 1st August 2015.
  • A time limit of one month to three months has been prescribed for completion of the DMS.

Source: www.caclubindia.com - CA Yash Goyal

Updated ITR-3, ITR-4, ITR-5, ITR-6, ITR-7 and Acknowledgment for Asstt.Year 2015-16 - CBDT

Recently CBDT has issued a notification about Updated ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7 Asstt.Year 2015-16 which is as under :

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]

Income-tax

NOTIFICATION

New Delhi, the 29th day of July, 2015

S.O. 2070 (E). In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Tenth Amendment) Rules, 2015.
   (2) They shall be deemed to have come into force with effect from the 1st day of April, 2015.

2. In the Income-tax Rules, 1962, in Appendix-II, for FORM ITR-3, FORM ITR-4, FORM ITR-5, FORM ITR-6 and FORM ITR-7, the following FORMS shall respectively be substituted, namely:-

Form No.: ITR-3
[For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship (Please see rule 12 of the Income-tax Rules,1962

Form No.: ITR-4
Date of Birth/Formation (DD/MM/YYYY Yes No. If Yes, please provide Sex (in case of individual) (Tick Residential/Office Phone Number with STD code / Mobile No. 1

Form No.: ITR-5
[For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 (Please see Rule 12 of the Income-tax Rules,1962 Is there any change in the name

Form No.: ITR-6
[For Companies other than companies claiming exemption (Please see rule 12 of the Income-tax Rules,1962 Is there any change in the company’s name If yes, please furnish the old name

Form No.: ITR-7
[For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E (Please see rule 12 of the Income-tax Rules,1962

Form No.: Acknowledgement
Acknowledgement


[Notification No.61/2015, F.No.142/1/2015-TPL]
(Gaurav Kanaujia)
Director to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended vide notification number S.O.1683 (E), dated 24.06.2015.

What are the expectations of the Central Government employees from the 7th Pay Commission?

“It is impossible for the 7th Pay Commission to fulfill all the demands of the Central Government employees. The question is – will it at least address the concerns of majority of them?”

The media is full of unconfirmed reports on the submission of 7th Pay Commission report to Central Government. Recently in an interview with a leading English newspaper, Neelkanth Mishra, India equity strategist of Credit Suisse expressed his strong opinions about the 7th Pay Commission and the implementation of its recommendations.

The big question is – what are the expectations of the Central Government employees from the 7th Pay Commission?

In an exclusive interview to NDTV, Neelkanth Mishra said that there are possibilities of a 40% hike in the salaries of Central Government employees. He believed that the 7th Pay Commission will submit its report to the Government in the month of September and the recommendations will be implemented next year.

The employees are likely to get a hike of 30-40%. This time around, the implementation wouldn’t be like it was previously, during the 6th Pay Commission, due to the amount of arrears (it is worth mentioning that the arrears dues were paid in two installments during the 6th Pay Commission). He said that the economic status of Central Government employees would increase enough to afford a car.

His forecast has to be taken seriously. On August 15, 2008, the then Prime Minister Manmohan Singh had announced that the 6th Pay Commission will come into effect from September onwards. More than the salary hike, the employees were curious to know about the arrears and how they were going to get it, because the sum was huge.

The employees didn’t make such a huge fuss about the increment they had received. Instead of small hike that was added to the salary, they were more interested in the lump sum arrears. Since it was impossible to clear 30-months’ arrears in a single payment, the government was forced to release it in two installments.

Download 7th Pay Calculator (Projected)

Source: cgsn.in

Important Due Dates in the Month of August-2015

Only one day remain to end the month of July-2015 and thus Income Tax, TDS, COT, VAT, Professional Tax, Service Tax, Excise, EPF and ESI departments due dates comes in the month of August-2015, which is as under:

INCOME TAX:
Due date extended for Individual, Business having Income Less than 1 Crore Due date extended from 31st July, 2015 to 31st August, 2015 vide order under section 119.

TDS:
Payment of TDS deducted for the month of July, 2015 for Asstt. Year 2016-17 on or before 07.08.2015 else face the penalty as Interest @ 1.5% per month or part of month from the date of deduction till the date of payment.

COT:
Payment of COT (Monthly) filing of VAT 120 for July, 2015 due date is 15th August, 2015 else Interest charged @1.5% per month or part of the month and Penalty @10% on the Tax Payable.

VAT:
Payment of VAT and filing of VAT 100 for July, 2015 deadline on 20th August, 2015 else Interest charged @1.5% per month or part of the month and Penalty @10% on the Tax Payable.

PROFESSIONAL TAX:
To e-Payment and filing of Form 5A for the month July, 2015 due date is 20.08.2015 and that Interest will be charged @1.5% per month or part of the month, Penalty Rs. 205/-.

SERVICE TAX:
Payments for Companies monthly upto 06.08.2015.

Extent of Delay
Simple Int P.A
Upto 6 Months
18%
6 Months to 1 Year
24%
More Than 1 Year
30%
EXCISE:
E-payment is mandatory for Excise Duty paid grader than 1000000 in Fin. Year 2014-15 as GAR-7 on or before 06.08.2015 and after that-
  • Monthly Return for production and removal of goods ER-1
  • Monthly Return of Excisable Goods Manufactured & Receipt of Inputs & Capital Goods By EOU, STP,HTP ER-2
  • Monthly Return of Information Relating to Principal Inputs by Manufacturer for Specified Duty paid>=Rs.One Crore in 2014-15 PLA/CENVAT/BOTH ER-6 on 10.08.2015.
EPF:
The consolidate statements due and remittance under EPF and EDLI Form 12A and Monthly Returns of Employee joined/left 5/10 on or before 15.08.2015.

ESI:
To deposit ESI due date is 21.08.2015. 

Tax implications of fixed deposits

If you are in the higher tax bracket, that is 20% or 30%, make sure that you pay the additional interest before filing your tax returns.

The biggest disadvantage of FDs is that the interest earned is subject to taxation. This eats into the returns.

Taxed as per income bracket
The interest earned on the FDs is added to the depositor's income and taxed as per income bracket. This reduces its attractiveness, especially for those in the highest tax bracket.

Pay tax even if bank cuts TDS
The bank will cut the tax at source (Tax Deducted at Source) before paying the interest, if the interest exceeds Rs 10,000 in a financial year.  But this is at the marginal rate of 10%. If you are in the higher tax bracket, that is 20% or 30%, make sure that you pay the additional interest before filing your tax returns. This is a common mistake most depositors do. It is a hassle if you receive a notice from the Income-Tax department for non payment of taxes. You will have to prove that not paying the tax was not deliberate and you may have to pay tax plus the penalty for the delay.

For ensuring that the bank has deducted TDS on your FD by checking Form 26AS. But sometimes if the bank deducts TDS but fails to submit the same to the I-T department, you may still get a notice.

If your PAN card details are not updated with the bank, the TDS will be deducted at 20%. And if you are in the 10% tax bracket, this will mean having to file for refund while filing tax returns, which can be a hassle. These are some of the things to keep in mind.

Form 15G and 15H
If your income is below the taxable limit and you have no then submit Form 15G to avoid TDS. For senior citizens whose income is below the taxable limit the form is 15H.

Reduce your TDS
You can also reduce your TDS by spreading your deposits across several banks so that the interest earned in a financial year remains less than Rs 10,000. But this will only reduce the TDS. You will still have to pay income tax as per your tax bracket.


7th Pay Commission to Hike Salaries By 40%: Credit Suisse

The 7th Pay Commission is likely to raise the salaries of government employees by up to 40 per cent, said Neelkanth Mishra, India equity strategist of Credit Suisse. The Pay Commission will submit its recommendations in October and it will be implemented by next year.

"As the Pay Commission numbers come through there could be a 30-40 per cent increase for each  individual. It won't be as big as last time because it was driven by a lot of arrears but definitely a large number of government employees will come into the pay bracket which can afford to have, for example,  four-wheelers," he said in an interview with NDTV.

Credit Suisse says about one-third of India's middle class is employed by the government and as the 7th Pay Commission comes through, there will be an improvement in discretionary spending.

"In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again," Mr Mishra said.

Once the Pay Commission submits its recommendations in October, it will take 3-6 months for the Centre and the states to announce its implementation, Credit Suisse said.


Gujarat and Madhya Pradesh have already indicated that they are going to implement the 7th Pay Commission recommendations from January 1, 2016, he said.

As clarity emerges on the 7th Pay Commission, consumption will see an uptick and that could act as a stimulus to the economy, the brokerage said.

However, Mr Mishra struck a note of caution. "Clearly if you see a third or 35 per cent of your middle class getting a 40 per cent or 30 per cent jump in compensation in one shot, the fears of inflation will rise." Expectations of rate cuts can get pushed out and some possible fiscal pressures can emerge, he warned.

Source: www.msn.com

Download Standard Handbook on Income Computation and Disclosure

This Income Computation and Disclosure Standard is applicable for computation of income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" and not for the purpose of maintenance of books of accounts.

In the case of conflict between the provisions of the Income]tax Act, 1961 "the Act" and this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to that extent.


Download Standard Handbook (Click Here)

Last Date of TDS Return for Government Deductor for Q-1 is 31st July, 2015 for Fin. Year 2015-16.

For Government deductors, Last date of TDS return filing for Q-1, Fin. Year 2015-16 is 31st July, 2015.

LATE FILING FEES AND PENALTY FOR FAILURE TO FURNISH/DELAY IN FURNISHING THE TDS/TCS STATEMENTS

Before understanding the penalty provisions for failure to furnish the statement of Tax Deducted at Source or statement of Tax Collected as Source (i.e. commonly known as TDS/TCS return) we shall first have a look at the few basic duties of a person liable to deduct/collect tax at source and due dates for filing of TDS/TCS return.

Duties of the person liable to deduct/collect tax at source

  • He shall obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be) and quote the same in all the documents pertaining to TDS/TCS.
  • He shall deduct/collect the tax at source at the applicable rate.
  • He shall pay the tax deducted/collected by him to the credit of the Government.
  • He shall file the periodic TDS/TCS statements, i.e., TDS/TCS return.
  • He shall issue the TDS/TCS certificate in respect of tax deducted/collected by him.

Due Dates for filing of TDS/TCS return
The due dates for filing of statement of TDS i.e. TDS return for different quarters are as follows:
Now we will understand the provisions relating to penalty for not furnishing the TDS/TCS statement i.e. TDS/TCS return.

Basic provisions
A person who fails to file the TDS/TCS return or does not file the TDS/TCS return by the due dates prescribed in this regard has to pay late filing fees as provided under section 234E and apart from late filing fees he shall be liable to pay penalty under section 271H. In this part you can gain knowledge about the provisions of section 234E and section 271H.

Late filing fees under section 234E
As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.

TDS/TCS return cannot be filed without payment of late filing fees as discussed above.  In other words, the late filing fees shall be deposited before filing the TDS return. It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.

Due Date of Wealth Tax Return filing extension - Clarification.

Extension of due date of filing Return of wealth for A.Y. 2015-16 - clarification

In terms of Explanation to sub-section (1) of section 14 of the Wealth-tax Act 1957. 'due date' of filing Return of wealth in relation to an assessee under the Wealth-tax Act shall be the same date as that applicable to an assessee under the Income-tax Act under the explanation to sub-section (1) of Section 139 of the Income-tax Act.

2. Central Board of Direct Taxes vide order under section 119 of the Income-tax Act F.No,225/154/2015/ITA-II dated 10.06.2015 has extended the 'due date' for filing Return of Income for assessment year 2015-16 in respect of assessees falling under clause (c) of explanation 2 to sub-section (1) of section 139 of the Income-tax Act from 31.07.2015 to 31.08.2015. In view of the same, the 'due date' for filing Retun of wealth by such assessees for assessment year 2015-16 also stands extended from 31st July 2015 to 31st August 2015.

3. This issues with the approval Chairperson of CBDT.



Cost Inflation Index for Fin. Year 2015-16

Recently, CBDT has issued notification regarding Cost Inflation Index(CII) for Financial Year 2015-16. Cost Inflation Index is required when assessee calculate Long term capital gain under Income Tax Act.

The CBDT notification regarding Notified Cost Inflation Index for Financial Year 2015-16 is as under :

SECTION 48, EXPLANATION (v) OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS - COMPUTATION OF - NOTIFIED COST INFLATION INDEX FOR FINANCIAL YEAR 2015-16

Notification No. 60 /2015/F.No.142/10/2015-TPL DATED 24-07-2015

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (42 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes published in the Gazette of India, Extraordinary, vide number S.O. 709(E), dated the 20th August, 1998, namely:—

2. In the said notification, in the Table, after serial number 34 and the entries relating thereto, the following serial number and entries shall be inserted, namely:—
Sl. No. Financial yearCost Inflation Index
352015-161081


How to Calculate Long Term Capital Gains?

LTCG = Full value of consideration received or accruing - (indexed cost of acquisition + indexed cost of improvement + cost of transfer)

Where, Indexed cost of acquisition =Cost of acquisition x CII of year of transfer /CII of year of acquisition

Indexed cost of improvement =Cost of improvement x CII of year of transfer /CII of year of improvement

CII = Cost Inflation Index (Please see chart given below)

Tax liability on LTCG to be taken at 20%.

If total income other than LTCG is less than zero slab,LTCG over the zero slab only attracts tax at 20%.

Updated last 33 years Cost Inflation Index (Click Here)

Importance and Benefits of filing of Income Tax Return in Due Time.

There are too many silent benefits of Income Tax Return filing in due time.  Out of which, some are explained below.   After viewing below points, every assessee should file his Income Tax Return in time. 

Benefits of Filing your Income Tax Return in time

Under Income Tax Act if your total income exceeds the basic exemption limit: You have to file the Income Tax Return within the prescribed time, i.e. by the due date.

The due dates of filing returns for Assessment Year 2015-16 are the following:
Category
Due Date
(a)   Most people fall in this category –
Salaried employees, pensioners and other persons whose accounts are not required to be audited
31st August, 2015 (Extended Date)
(b)   Companies and other persons whose accounts are to be audited
30st September, 2015
What happens if a person does not file the Income Tax Return by the due date

You have to Pay Interest on Income Tax Due if you don’t file on time

If you do not file the Income Tax Return by the due date:
You are liable to pay interest at the rate of one percent for every month after the due date till the date of filing the return.

If No Tax is due: Interest is calculated on the amount of tax payable after adjustment of pre-paid taxes like advance tax, TDS etc. So, if there is no tax payable on the basis of the Income declared in the Tax Return, there is no liability for the payment of interest.

You don’t get the benefit of Carry Forward of Losses if you don’t file on time

Under income tax law, if you have sustained a Business loss or loss under the head “Capital Gains”, you can carry forward the loss ONLY if you file the Income Tax Return by the due date.

Therefore, if you have sustained a loss, you must file your Income Tax Return in time if you want to carry forward the loss for future adjustment with your Income.

Possibility of Penalty or Prosecution by the Income Tax Department

Say you could not file the Income Tax Return by the due date: To avoid any penalty by the Income Tax Department, you must file your Income Tax Return before the end of the relevant assessment year that is 31st March 2016.

Possibility of Penalty and Prosecution: If you do not file your Income Tax Return by 31st March 2016, the Income Tax Department may impose a penalty of Rs. 5000, even though the tax payable by you may be Zero.

Further, if a person has failed to file the Income Tax Return by 31st March 2016 and the tax payable after adjustment of advance tax and TDS exceeds Rs. 3000, he may be prosecuted for imprisonment also. However, this law is used in practice very rarely.

Other reasons for filing the returns of income within time

  • If a refund is due after adjustment of prepaid taxes, it is necessary to file the Income Tax Return to get the refund from the Income Tax Department.
  • Bank Loans: Further, the return is a declaration of your income and it will be extremely helpful when you are applying for a loan from bank. Before granting the loan, banks want to know your financial capacity and your income details as shown by you in income tax returns. 
  • Visas of foreign countries: Many countries want to know if you are financially sound before they issue you a visa and for this purpose they will rely on your income tax returns.

A to Z about Form 16 for Salaried Employee.

What is Form 16?

If you are salaried employee in an organization, then you will get the salary after deducting tax by the employer. Therefore Form 16 is a certificate issued to you by your employer stating the Personal details of the Employee including Name, Permanent Account Number (PAN) etc , details of the salary you have earned, Perquisites that has been offered, allowances given , details of Chapter VIA deductions and the tax deducted on your salary by your Employer and paid to the government. It also has Employer details like Name, permanent account number PAN, TAN etc.

This is the basic document which is required by the employee to file income tax returns because Form­16 contains income chargeable under the head “Salaries” which is the taxable salary. The same needs to be indicated in Income Tax Returns. Form 16 has 2 parts ­ Part A and Part B. 

Part A has TAN (tax deduction & collection account number) of the employer & PAN (permanent account number) details of both the employer and employee. The name and address of employer and employee is also mentioned. It also mentions the assessment year and provide summary of tax deducted from your income and deposited to the government as per the quarterly TDS return filed by the employer. A monthly detail of TDS deducted and deposited is also certified. 

Part B is an important part of your Form 16 since it has a consolidated detail of salary paid to you during the year. The breakup of your salary as well as detail of deduction claimed by you under section 80 of the income tax act is mentioned.  Deductions under Chapter VIA include details of amounts claimed under Section 80C for EPF, PPF, NSC, life insurance premium or Section 80D for health insurance, Section 80G for donations made are all mentioned here. It also shows your total taxable income and tax deducted on such income.

Necessity of Form 16 In Filing Income Tax Return: Form 16 is necessary to file an income tax return in India because Firstly, Form 16 acts as a checker for you to verify whether your employer has deposited the whole amount of TDS that he may have deducted from your salary. Secondly, it will enable you to file Income tax return disclosing the correct taxable salary income and various deductions from your salary like EPF, Profession tax and TDS.

Employer Obligation to provide Form 16 :­ Further, it is the obligation of the employer to provide a Form 16 to all employees by 31 May of the assessment year (AY), if TDS has been deducted , In case no TDS has been deducted by the employer they may not issue you a Form 16.The employer can be liable to pay a penalty of Rs. 100 for each day by which he delays issuance of this certificate, also if you have been employed under more than one employer during the year, each of your employers will provide you a Form 16.

Filing of Income Tax Return without Form16:­ Even if Form 16 has not been issued you cannot escape from the liability to file Income Tax Return , therefore to file income tax return without Form 16 you need to collect your monthly salary slip and compute total salary for the year.
Note: The amount credited in your bank statement is after deducting the tax at source but for reporting in ITR you need to calculate Gross Salary. An employee receives many types of allowances in the form of salary while some allowances such as conveyance allowance, medical allowance, HRA, etc. are exempt from income tax while dearness allowance is completely taxable. Hence, the IT Department allows you to deduct the exempt allowances from salary to arrive at the figure of taxable salary.

Since you have not received form 16 from your employer, you must verify Form 26AS to know about the TAN and TDS deducted by your Employer

If you have other income as well apart from salary then sum up all the income like Income from renting of House property , capital gains from sale of assets , income from other sources like interest on bank deposits, RDs, FDs etc.

Deduct tax benefit from the above computed income like investments made under NSC, LIC, tuition fees, PPF, and repayment of principal of housing loan under section 80C. Similarly, donations made to charitable institutions can be claimed under section 80G, and payment made towards premium of medical insurance policy can be claimed in section 80D.

After summing up all income and deducting the tax benefits, the resultant computation will be taxable income. Now, calculate income tax on this taxable income using the IT slab rates for financial year 2014­15.

Now you are all set for filing tax return. You can now visit the online tax filing site to file your INCOME TAX RETURN.

Source: www.caclubindia.com Article by CA Soniya Agrawal

Additional DA From July 2015 hike by 6% Confirmed.

As per AICPIN points an additional Dearness Allowance will be hike by 6% from July, 2015 but till to wait for the month of June AICPIN data that will be released on July 31 to find out.

What will the additional Dearness Allowance increase be from the month of July to Dec 2015? One has to wait for the AICPIN data for the month of June 2015 that will be released on July 31 to find out.

Central Government employees are not the only ones who are eagerly waiting to find out what the DA percentage hike will be from July to December 2015. Central Pensioners and employees of the banking sectors too are curious to know. Additionally, the employees are working under state governments are also covered in this circle.

It has almost been confirmed that there will be a 6% hike in DA this time. But, it will be absolutely confirmed once the June AICPIN statistics is revealed. The fluctuations of the June AICPIN is not expected to dramatically affect the fate of July’s DA hike, but it will have some impact on the DA hike that will be announced for January 2016.

Important Information about Downloading of TDS Certificates For A.Y. 2015-16

Given below are some important information regarding downloading of TDS certificates. Refer to the following provisions of the Income Tax Act, 1961:

Downloading of TDS Certificates from TRACES made mandatory:   

In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or http://www.tdscpc.gov.in (hereinafter called TRACES Portal).

TDS Certificates downloaded only from TRACES hold valid: 

In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

Due Date for downloading and Penalty for non-compliance: 

Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.

Assistance for downloading TDS Certificates from TRACES: 

You can logon to TRACES portal http://www.tdscpc.gov.in and refer to TRACES e-Tutorial https://www.tdscpc.gov.in/en/download-form16a-etutorial.html to download TDS Certificates. For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

Goods & Service Tax (GST) – Key Features

In continuance of our earlier series titled GST Knowledge Series# 1, Understanding the Mechanics of Goods & Service Tax, we have discussed the basic DNA of Goods & Service Tax popularly known as GST. These features as applicable to India were:

1. DUAL GOODS AND SERVICE TAX
2. APPLICABILITY OF GST TO ALL TRANSACTIONS
3. DESTINATION BASED MULTI POINT LEVY
4. COMPUTATION OF GST ON THE BASIS OF INVOICE CREDIT METHOD
5. PAYMENT OF GST
6. UNIFORM PROCEDURE FOR COLLECTION OF GST

In this Article, we will take the discussion forward and discuss in detail about other Salient Features of GST.
1. THRESHOLD LIMIT
The present threshold limits prescribed in different State VAT Acts below which VAT is not applicable varies from State to State. A uniform State GST threshold across States is desirable and, therefore, it is considered that a threshold of gross annual turnover of Rs.10 lakh both for goods and services for all the States and Union Territories may be adopted with adequate compensation for the States.The issue is still debated and there is no consensus till date.

2. COMPOSITION SCHEME UNDER GST
The States are also of the view that Composition/ Compounding Scheme for the purpose of GST should have an upper ceiling on gross annual turnover and a floor tax rate with respect to gross annual turnover. The first discussion paper suggests that there would be a compounding cut­off at Rs. 50 lakh of gross annual turnover and a floor rate of 0.5% across the States. The scheme would also allow option for GST registration for dealers with turnover below the compounding cut­off. In reference to Composition scheme, the task force has recommended rate of 1% each on account of CGST and SGST for dealers with the turnover between Rs 10 lacs to Rs 40 lacs.

3. REGISTRATION & TAX PAYER IDENTIFICATION NUMBER
All the taxable entities with turnover above the threshold limit will be required to register and obtain GST registration number. The taxable entities with lower turnover will also have the option to register. As per First Discussion paper, each taxpayer would be allotted a PAN­linked taxpayer identification number with a total of 13/15 digits. This would bring the GST PAN­linked system in line with the prevailing PAN­based system for Income tax, facilitating data exchange and taxpayer compliance. There will be single GST registration number for all branches in a State.  Therefore, a dealer having branches across States will have as many GST registration numbers as the number of States in which he operates.

4. INPUT TAX CREDIT (ITC) SET OFF
Since the Central GST and State GST are to be treated separately, taxes paid against the Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be utilized only against the payment of Central GST. The same principle will be applicable for the State GST. Further, the rules for taking and utilization of credit for the Central GST and the State GST would be aligned.

5. CROSS UTILIZATION OF ITC
Cross utilization of ITC between the Central GST and the State GST would not be allowed except in the case of interState supply of goods and services under the integrated goods and service tax (IGST) model.

6. CREDIT ACCUMULATION ON ACCOUNT OF REFUND
Ideally, the problem related to credit accumulation on account of refund of GST should be avoided by both the Centre and the States except in the cases such as exports, purchase of capital goods, input tax at higher rate than output tax etc. where, again refund/adjustment should be completed in a time bound manner.

7. ZERO RATING OF EXPORTS
The first discussion paper has suggested that the exports would be zero­rated. Similar benefits may be given to Special Economic Zones (SEZs). However, such benefits will only be allowed to the processing zones of the SEZs. No benefit to the sales from an SEZ to Domestic Tariff Area (DTA) will be allowed.

8. GST ON IMPORTS
Imports will be brought under the scope of GST with necessary Constitutional Amendments. They will treated at par with inter­state transactions and Integrated goods and service tax (IGST) will be levied on imports. The incidence of tax will follow the destination principle and the tax revenue will accrue to the State where the imported goods and services are consumed. Full and complete set­off will be available on the IGST paid on import on goods and services.

9. SPECIAL INDUSTRIAL AREA SCHEME
After the introduction of GST, the tax exemptions, remissions etc. related to industrial incentives should be converted, if at all needed, into cash refund schemes after collection of tax, so that the GST scheme on the basis of a continuous chain of set­offs is not disturbed.

10. MAINTENANCE OF RECORDS
A taxpayer or exporter would have to maintain separate details in books of account for availment, utilization or refund of Input Tax credit of CGST, SGST and IGST.

11. PERIODICAL RETURNS
The taxpayer would need to submit periodical returns, in common format as far as possible, to both the Central GST authority and to the concerned State GST authorities.

12. ADMINISTRATION OF GST
The administration of the Central GST to the Centre and for State GST to the States would be given. As per the recommendation of Task force report on GST, The Central Board of Excise and Customs(CBEC) shall be responsible for implementation of CGST and state tax administrations will be separately responsible for implementation for SGST.

13. ASSESSMENT
Keeping in mind the need of tax payer's convenience, functions such as assessment, enforcement, scrutiny and audit would be undertaken by the authority which is collecting the tax, with information sharing between the Centre and the States. The various tax administrative functions such as assessment, enforcement, scrutiny and audit should be undertaken by the CBEC in respect of the CGST and by the State tax administration in respect of the SGST. All procedures under CGST and SGST should be uniform. The Central Government will be responsible for establishing a taxpayers information network (TINXYS) keeping in view the information requirement of CBEC and the State tax administration. The TIN will be shared between the Centre and the States. The information furnished through periodical returns shall be stored in a common database with access to both the CBEC and the State tax administrations.Since the tax base will be common, there should be a common appellate authority. Similarly, the Authority for Advance Ruling will also be common. No authority should have any power to make preventive detention for the purposes of CGST and SGST.

14. GOODS AND SERVICE TAX COUNCIL
As per the Constitution Amendment Bill, 2014 (‘Bill’), there will be a Goods and Service Tax Council who shall make recommendation to the Union and the States. The Bill provides that the administration of GST would be the responsibility of the GST Council which would then become the apex indirect tax policy making body of the country.  This GST Council would be formed by the Central and State level ministers in charge of the finance portfolio.

Source: CA Club India

Read Other post by CA. Chitresh Gupta
B. Com(H), FCA, IFRS (Certified), IDT (Certified)

LTC Advance before 65 days from date of outward Journey, How to apply ?

Duration for applying LTC advance

A Government servant can draw the Leave Travel Concession advance 65 days before the proposed date of outward journey.

Indian Railways has fixed the advance reservation period as 120 days excluding the date of journey w.e.f. 01.04.2015 for all long distance mail/express trains as well as Shatabdi Express trains.

The issue of any change in instructions relating to drawal of advance for LTC has to be decided keeping in view all factors including changes made by the Railways, as well as financial implications.

This was stated by the Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office, Dr. Jitendra Singh in a written reply to a question by Shri Kiranmay Nanda in the Rajya Sabha today.

PIB News

Compensatory City Allowance may contemplates to recommend by 7th Pay Commission

Sources said that the 7th CPC may recommend the Compensatory City allowance in its report for Central Govt employees. Upto 5th Pay Commisson, CCA has been granted to all CG Employees and we all know that the 6th CPC has abolished. The NC JCM Staff Side strongly suggested in its memorandum to introduce again the CCA to submitted to 7th Pay Commission earlier. The unconfirmed sources said, the CCA will come with two criteria as granting in the 5th CPC.

The Compensatory City allowance has been granted to Central Government employees since the First Central Pay Commission. This allowance was sanctioned to compensate for the high cost of living in bigger cities classified as such for grant of house rent allowance. Upto 3rd CPC it used to be certain percentage of pay for different pay ranges and different classified towns. The 4th and 5th CPC, however, recommended lump sum amounts as CCA. 5th CPC in para 106.10 (Pge 1582) of their report has commented that :

“We also do not support the demand for making CCA a percentage of basic pay because this amounts to admitting a firm and casual relationship between CCA and income.”

When it is admitted that CCA is essentially an allowance given to offset the imperfection in Dearness allowance as a measure of relative expensiveness of classified Cities, it really becomes an additional DA. When the DA is at a percentage of Pay, how can CCA not be fixed as a percentage of pay. The basis on which the lumpsum amount of CCA was recommended by the 4th and 5th CPCs had also not been disclosed and therefore, it appears to be an arbitrary decision.

The 6th CPC on the other hand recognised that the only two factors viz. accommodation and transportation contribute to high cost of living in classified towns. They, recommended the revised HRA and Transport allowance to adequately compensate for relative expensiveness of the classified cities. In view of that contention, they stated that the CCA stands subsumed in Transport allowance. We are unable to agree with the idea of subsuming CCA in Transport allowance as recommended by the 6th CPC on the consideration that the relative expensiveness in bigger cities is only on account of problems of accommodation and transportation. There are various other factors due to which the expensiveness of a particular city either increases or decreases. CCA was a component in determination of overtime allowance prior to the implementation of the 6th CPC recommendations. By allowing this to be subsumed in the transport allowance, it became difficult to factor the CCA component in the computation of over time allowance.

For these reasons, we propose the Commission to recommend the following rates of City Compensatory allowance...



Due date to filed ITR-V for A.Y. 2013-14 and 2014-15 extend to 31st Oct., 2015

As per Notification No. 2/2015 regarding Electronic Verification Code (EVC) for electronically filed Income Tax Return as an alternative mode of verification released.

The CBDT hereby extends the time limit for submitting ITR-V forms relating to Income Tax Returns filed electronically (without digital signature certificate) for Asstt. Year 2013-14 (filed on or after 1st April, 2014 till 31st March, 2015) and for Asstt. Year 2014-15 (filed on or after 1st April 2014 till 30th June 2015).  These ITR-V forms can now be submitted upto 31st October, 2015 or within a period of 120 Days from the date of uploading of the electronic return data whichever is later.

Download Notification of Extension of time Limit (Click Here)

Free Download Form 6 to declare black money e-Filing

Recently, CBDT has issued a notification dated 02.07.2015 regarding the e-filing Form 6 under sub-sections (1) and (2) of section 85 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015), the Central Board of Direct Taxes with the approval of the Central Government. 

Definitions :
(1) In these rules, unless the context otherwise requires,-

  • “Act” means the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015);
  • “Chapter” means a Chapter of the Act;
  • “Form” means a Form appended to these rules;
  • “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961);
  • “section” means a section of the Act.

(2) Words and expressions used and not defined in these rules but defined in the Act, the Income-tax Act or the rules made thereunder, shall have the meanings respectively assigned to them in those Acts and rules. 


As per the above said act/rules, undisclosed foreign Income and Assets as Black Money declarent should pay the 30% tax and 30% penalty till 30th Sep., 2015 in Form 6.

For the purpose of determining the market value as on valuation date referred to in in sub-rule (1), and for the purpose of conversion into Indian currency or conversion of foreign currency into United States Dollar and thereafter into Indian currency, the date shall be-

  • in respect of asset declared under section 59 of the Act, the 1st day of July, 2015;
  • in any other case, the 1st day of April of the previous year. 

Order for Due date :

The Electronic filing of Form 6 under The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015 has been enabled under the menu "e­File" after login. Taxpayers are requested to e­File Form 6 during the compliance window which ends on September 30, 2015

Declaration of undisclosed asset located outside India under section 59 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 FORM-6

Download Black Money Rules 

I-T dept to bring one crore new people under tax net this fiscal

The income tax department has launched an ambitious drive to bring under its net 10 million new taxpayers, after the government recently asked the official to achieve the target within the current financial year. As part of the government’s initiative to broaden the base, the Central Board of Direct Taxes (CBDT), apex policy making body, this week activated all field formations of the department to achieve the goal.

The order issued by CBDT has laid down region-wise targets. Maharashtra’s second largest urban centre Pune, leads the list with the target of about 1,014,000 new assessees, north-western states of Jammu & Kashmir, Himachal Pradesh, Punjab and Haryana about 9,30,000 new assessees, and the newly bifurcated states of Andhra Pradesh and Telangana will have to contribute 7,93,000 new taxpayers. Similarly, Gujarat region has been given a target of getting 7,86,000 taxpayers, Tamil Nadu 7,64,000, West Bengal and Sikkim 6,91,000, and Mumbai region 6,23,000 assessees. The target for the national capital has been set at 5,32,000 new assessees.

The department has  18 regions for purposes of collection of revenue under the major heads of I-T, wealth tax, and advance tax for large entities like corporates. The board has also communicated that it should adopt a multi-pronged strategy to achieve this ‘not-so-easy’ target by holding meetings with trade associations and professional bodies and obtaining data on under-reporting assesses through technical and human intelligence. The strategy in this regard was mooted and formally launched in May this year when CBDT told the department about the government’s desire to have at least 25,00,000 new assessees each month from across the country.


No Need to take tension if e-filing of Income Tax Return Password forget.

There are too difficult to remember each and every password on net, because on the net there are huge passwords with huge sites with huge conditions. The conditional passwords required each and every sites i.e. Alphabate only, Numeric Only, some are requireds Alphabates + Numeric or viz. along with Alphabate + Numeric + Special Characters etc. This types dificulty is human with Password.  Therefore, if you have not stored password in writing any where not possible to remember all.

Recently, CBDT has starts new and latest facility Income Tax Returns filing by e-ITR process, thus functionality of Reset Possward at Income Tax Return e-filing site is as under :

Reset Password Options 
Registered user can reset the password using one of the following options: 
1. Answer Secret Question. 

2. Upload Digital Signature Certificate 
3. Using OTP (PINs) 

1. Answer Secret Question 
To Reset Password using the ‘Answer Secret Question’ option, the steps are as below: 
Step 1: In Homepage, Click on "LOGIN HERE" 
Step 2: Click on "FORGOT PASSWORD" link. 
Step 3: User must provide User ID, CAPTCHA and click on CONTINUE button. 
Step 4: Select ‘Answer Secret Question’ from the drop down options available. 
Step 5: Enter the Date of Birth/Incorporation from the Calendar provided (Mandatory) 
Step 6: Select the Secret Question from the drop down options available (Mandatory) 
Step 7: Enter the ‘Secret Answer’ and Click on “VALIDATE”. 
Step 8: On success, the user must enter the New Password and confirm the password. 
Step 9: Click on “SUBMIT” 

Once the password has been changed a success message will be displayed. User can login with new password. 

2. Upload Digital Signature Certificate 
To Reset Password using the ‘Upload Digital Signature Certificate’ option, the steps are as follows:
Step 1: In Homepage, Click on "LOGIN HERE" 
Step 2: Click on "FORGOT PASSWORD" link. 
Step 3: User must provide User ID, CAPTCHA and click on CONTINUE button. 
Step 4: Select ‘Upload Digital Signature Certificate’ from the drop down options available 
Step 5: User can select any one of the two options provided: 
              i. New DSC 
             ii. Registered DSC 
Step 6: User must Upload DSC and click on the “VALIDATE” button. The DSC is validated. 
Step 7: On success, the user must enter the New Password and confirm the password. 
Step 8: Click on “SUBMIT” 

Once the password has been changed a success message will be displayed. User can login with new password. 

3. Using OTP (PINs) 
To Reset Password using the ‘Using OTP (PINs)’ option, the steps are as follows: 
Step 1: In Homepage, Click on "LOGIN HERE" 
Step 2: Click on "FORGOT PASSWORD" link. 
Step 3: User must provide User ID, CAPTCHA and click on CONTINUE button. 
Step 4: Select ‘One Time Password’ from the drop down options available. 
Step 5: The user must select one of the options mentioned below 
            >> Registered Email ID and Mobile Number 
            >> New Email ID and Mobile Number

Total Income Tax Provisions.

Tax laws are like a web. The more you try to understand it, you find more getting tangled into. For a layman it is very difficult to memorize all the provisions of Income Tax due to its vast coverage and twists in all the provisions. Therefore, taxpayers many times find themselves in trouble. Although it is not possible for every assessee to go through all the provisions, still all must have basic knowledge.   eight-ways-family-can-help-you-save-tax-legally

We here bring A TO Z OF INCOME TAX PROVISIONS AT A GLANCE:

GENERAL

  1. Detailed information of Income Tax is available on www.incometaxindia.gov.in
  2. As per Income Tax Act, Income is taxable under five heads- Salary, House Property, Business or Profession, Capital Gain and Other Sources.
  3. Accurate Stock Valuation should be done on 31st of March.
  4. Cash payment should not be made to a person in single day exceeding Rs.20,000.
  5. Cash Payment limit for Transporters is Rs.35,000.
  6. Loans, deposits and Immovable Properties transactions should not be carried out above Rs.20,000 in cash.
  7. Business loss can be carried forward to Next 8 Years.
  8. From FY 2014-15 Depreciation is to be calculated as per New Companies Act.
  9. Domestic Transfer Pricing is applicable on transaction exceeding an Amount Rs.20 Crores.

SALARY

  1. Salaried person must obtain Form 16 from his Employer Every Year.
  2. Income Tax Return should be filed by considering Form 16 and other Income.
  3. Transport Allowance is exempt up to Rs.1,600 per month.
  4. LTC or LTA is exempted if the same is actually spent.
  5. Children Education Allowance is available for children of employees. Maximum exemption available is Rs. 100 per month per child up to a maximum of 2 children.
  6. House Rent Allowance

When rent is actually paid by an individual, he / she is entitled to exemption in respect of House Rent Allowance which is limited to least of the following:

  • Actual HRA received
  • Rent paid less 10% of salary
  • 40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi)

*Salary is defined as Basic Pay. Dearness allowance will form part of salary if the same enters into computation of retirement benefits.

7. HOUSE Property

  1. 30% Standard deduction is available on Income from House Property.
  2. Income to be considered as deemed let out on second House property.
  3. For self-occupied house property, deduction of Interest on Housing Loan is allowed up to Rs. 200,000/- and for other house property actual expenditure of Interest on Housing Loan is allowed.
  4. Repayment of Principal amount of Housing Loan is deductible u/s 80C up to Rs.150,000/-.

TAX AUDIT

  1. Tax Audit is compulsory if sales turnover exceeds Rs.1 crore in case of business.
  2. Tax Audit is compulsory if the Gross Receipts of Professionals exceeds Rs.25 lakhs.
  3. If sales turnover is below Rs. 1 crore, then net profit of 8% or higher is to be taken as business income otherwise tax audit is required.
  4. The Due Date for Tax Audit and income Tax Return is 30th September.
  5. Assessee other than Company and those eligible for Tax Audit are required to file Income Tax Return before 31st July. Extended date is 31st August for F.Y. 2014-15.

TDS

  1. Tax Audit applicable assesses should deduct TDS on particular transactions.
  2. TDS should be made on the date of Credit or Payment basis of whichever is earlier.
  3. TDS payment should be made on or before 7th day of Next Month.
  4. TDS Returns are to be filed Quarterly.
  5. TDS returns can be revised any number of times.
  6. TDS should be deducted and paid if applicable.
  7. If TDS is not deducted then deduction of 30% of Expenditure is not allowed.
  8. Late filling of TDS return attracts late filing fees of Rs. 200 per day.

CAPITAL GAIN

  1. Long Term Capital Gain will arise if transfer of specified Capital Assets is made after 3 years.
  2. Generally Long Term Capital Gains is taxable @ 20%
  3. STT paid Long Term Capital Gain on Shares, etc is exempt from Tax.
  4. Short Term Capital Gain is Taxable @ 15% if STT is paid.
  5. Capital Gain on Immovable Properties is chargeable at Stamp Duty Value or Selling Price whichever is higher.
  6. Dividend received from domestic company is exempt from Tax.
  7. Agricultural Income is exempt from Tax.

TAX ON GIFTS

  1. Gifts received form stranger of an Amount exceeding Rs.50,000 is taxable.
  2. Income Tax is not chargeable on Gifts received at the time of Marriage, Will, and in case of Succession and from specified relatives.

DEDUCTIONS

  1. Maximum deduction limit u/s 80C, 80CCC and 80 CCD is Rs.1,50,000.
  2. Deduction of Medical Insurance Premium is available up to Rs. 25,000.
  3. Deduction of Medical Insurance Premium paid for Parents is available up to Rs. 20,000.
  4. Deduction limit of Interest earned on Saving Account is up to Rs.10, 000.
  5. Income earned by a Minor child is clubbed in the hands of Parents.
  6. Every Taxpayer should verify his Form 26AS.
  7. Form 26AS provides the Information regarding the TDS, Advance Tax paid and details of refund.
  8. Notice may be sent to the Taxpayer if the Income mentioned in Form 26AS and the Income Tax Return filed is having difference.

EXEMPTIONS AND TAXES

  1. Basic Exemption Limit for individuals for FY2015-16 is Rs.2,50,000.
  2. Basic Exemption Limit for Senior Citizen i.e. above 60 years age is Rs.3,00,000.
  3. Basic Exemption Limit for Super Senior Citizen i.e. above 80 years age is Rs.5,00,000.
  4. If taxable income of Individual is less than Rs. 5 Lakhs then relief of Rs.2,000 is available in Tax.
  5. Advance Tax is to be paid if Tax Liability during the year exceeds Rs. 10,000.
  6. 12% of Surcharge is applicable if Income Exceeds Rs. 1Crore.
  7. Income Tax Return should be filed if Income exceeds Basic Exemption Limit.
  8. 30% of Tax applicable on Income of Partnership Firm, Company, LLP etc.
  9. For Companies – Minimum Alternate Tax and for other Assesses– Alternate Minimum Tax rate is 18.5%.

INCOME TAX RETURN

  1. Details of all Bank Accounts have to be given in Income Tax return.
  2. Passport number is required to be given in Income Tax return.
  3. Detail of Fixed Assets held in Foreign Country is required to be given in Income Tax return.
  4. Aadhar Card No. is required to be mentioned in Income Tax return.
  5. E-filling of return is compulsory if income exceeds Rs. 5 lakhs.
  6. In Income Tax, E-filling of return can be done for Previous 2 Years only.
  7. PAN Card is essential for Taxpayer and it should not be used as Id Proof.

Source: www.taxmantra.com by Mr. Alok Patnia