Taxpayer must complete 7 Tax Task before 31st March, 2021

7 tax tasks to complete before 31 March 2021

There are certain tax tasks which we need to complete by the 31st March 2021. Here we are taking a look at some of them.

As we are approaching the end of the financial year 2020-21, there are certain tax tasks which we need to complete by the 31st March 2021. Let us discuss those tasks in detail.

1. Submitting the details of salaries received from earlier employer

If you are a salaried person and were employed with more than one employer in the current year, please furnish details of your salaries from the previous employer/s in Form No. 12B, to your current employer immediately so as to ensure proper tax deductions on your aggregate salary earning is made by the current employer. In case you fail to do so, you may get a shock at the time of filing of your income tax return (ITR) finding that you have huge tax (along with interest) to pay. This happens because all the employers would have given the benefits of initial exemption as well as various deductions, resulting into deduction of lower tax on aggregate basis.

2. Submit the proof of expenses to your employer

There are certain exemptions which are available to employees on expenses actually incurred. For items like House Rent Allowance (HRA) and Leave Travel Assistance (LTA) unless you submit the necessary documents, the employer will treat these allowances as taxable and deduct tax thereon. If you fail to submit the documents, you can still claim these items as exempt and claim the refund for the excess tax while filing your ITR.

3. Verify quantum of deductions available from your bank records

Most of us use ECS debit facility for items like life insurance premium, SIP for equity linked saving schemes (ELSS), home loan EMIs etc. It might have happened that, due to any reason, the ECS might not have been debited. Likewise, even in case you have issued a cheque for such items, the same might not have been yet presented to the bank. So please verify the details from your bank statement and cross check that for all the eligible deductions factored into by you amounts have been debited in your bank account. In case some items have not been debited, please ensure that either the payment is made for the same or investments are made in any alternate product available before the year end.

4. Payment of advance tax

You are required to pay advance tax on your current year’s income, in case your net tax liability for the year after reducing the tax deducted at source from all the sources exceeds ten thousand rupees. Senior citizens not engaged in any business or profession are not required to pay advance tax. Though advance tax has to be paid in four instalments in the ratio of 15%, 30%, 30% and 25%, but in case you miss all the four instalments, at least pay the same by 31st March, as advance tax paid by 31st March is also treated as advance tax. Failure to pay adequate advance tax attracts punitive interest.

Even if you are salaried and tax has been deducted from your salary, you still have to pay advance tax on any other income like rent, interest, dividend, capital gains etc. in case the aggregate tax liability exceeds Rs 10,000. For self-employed where the tax deducted is not sufficient enough to cover the aggregate tax liability, they also have to pay advance tax. Even in cases of interest income where the tax is deducted at source at the rate of 10%, you may still have to pay advance tax in case you are in a higher tax slab.

5. Minimum contribution to PPF account and NPS account

In case you have a PPF account either in your own name or in the name of children or spouse, you have to contribute minimum Rs 500 every year in each account to avoid the account becoming dormant. A dormant account can be made active by payment of a nominal amount and contribution of Rs 500 for each year of default. Likewise, in case you have an NPS account, you need to deposit minimum of Rs 500 every year in your account failing which the account gets frozen. A frozen account can be reactivated by paying a nominal penalty and one time contribution of Rs 500.

6. File your pending income tax return for financial year 2019-2020

In case you have not yet filed your income tax return for the last financial year, i.e. 2019-2020, you have the last chance to file it by 31st March 2021, that too with penalty.

7. Book long-term capital gains on listed shares and equity mutual funds schemes upto Rs 1 lakh

Section 112A long-term capital gains on listed equity shares and equity-oriented schemes are fully exempt upto Rs 1 lakh and the balance is taxed @10%. So you can book long-term capital gains upto one lakh of rupees before march 31st March, 2021 in case not yet booked. In case you have made these investments for long term, you may decide to sell the shares the same day and buy the same next day or carry out these transactions with different brokers on the same day. The purchase and redemption of the units can be done the same day. By this strategy you can minimise your overall tax liability.

Source : Financial Express

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Updated version of form 64D as per notification no. 55/2020 is now available for filing

MINISTRY OF FINANCE

(Department of Revenue)

[CENTRAL BOARD OF DIRECT TAXES]

NOTIFICATION

New Delhi, the 28th July, 2020

INCOME-TAX

G.S.R. 469(E).—In exercise of the powers conferred by sub-section (7) of section 115UB read with 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. Short title and commencement.—(1) These rules may be called the Income-tax (18th Amendment) Rules, 2020.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962,-

(a) for rule 12CB, the following rule shall be substituted, namely:- 

“12CB. Statement under sub-section (7) of section 115UB.—(1) The statement of income paid or credited by an investment fund to its unit holder shall be furnished by the person responsible for crediting or making payment of the income on behalf of an investment fund and the investment fund to the-

(i) unit holder by 30th day of June of the financial year following the previous year during which the income is paid or credited in Form No. 64C after generating and downloading the same from the web portal specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by him and duly verified by the person paying or crediting the income on behalf of the investment fund in the manner indicated therein; and

(ii) Principal Commissioner or the Commissioner of Income-tax, as the case may be, within whose jurisdiction the Principal office of the investment fund is situated by 15th day of June of the financial year following the previous year during which the income is paid or credited, electronically under digital signature, in Form No. 64D duly verified by an accountant in the manner indicated therein.

2) The Principal Director General of Income-tax (Systems) or the Director General of Incometax (Systems), as the case may be, shall specify the,- 

(i) procedure for filing of Form No. 64D and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the statements of income paid or credited so furnished under this rule; and 

(ii) procedure, formats and standards for generation and download of statement in Form No. 64C from the web portal specified by him or by the person authorised by him and he shall be responsible for the day-to-day administration in relation to the generation and download of certificates from the web portal specified by him or the person authorised by him.”

(b) in Appendix-II, for Form No. 64C and 64D, the following Forms shall be substituted, namely: -

Download Notification

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Last Chance to e-File IT Return for A.Y. 2015-16 on 31st March 2017

Once the e-Filed returns are processed and the return is termed as defective, assesse is facilitated to submit the response against defective notice (u/s 139(9)) sent by CPC/AO.

The last date for submission of a valid return for AY 2015-16 expires on 31st March 2017 u/s 139. Those taxpayers whose returns for AY 2015-16 have been declared invalid u/s 139(9) by CPC are requested to file their return u/s 139(4)/139(5) before 31 March 2017.

Process
The detailed process to submit the Response to defective notice is as below

• Login on to www.incometaxindiaefiling.gov.in with your User ID, Password and Date of Birth/ Incorporation
• Go to e-File -> e-File in response to notice u/s 139(9)
• On successful validation if there is any defective notice raised by either CPC/AO, the below screen will be displayed
• Assesse must click on “Submit” link under Response column for the respective defective notice number in order to submit the response.
• For defective notice raised by AO, the below screen will be displayed.
• Assesse selects the ITR from the drop down and uploads the respective XML file and clicks on Submit. Once the response is successfully submitted, the below success page will be displayed.
• For defective notice raised by CPC, the below screen will be displayed.
• If the assesse Agrees with the defect i.e. assesse selects Yes under column “Do you agree with defect?”, Select ITR Form Name, Assesse needs to upload the respective return XML.
• If the assesse does not agree with the defect i.e. assesse selects No under column “Do you agree with defect?”, Assesse needs to provide the remarks under column Assesse Remarks as shown in the below screen.
• If the Error Code value is “3” and the assesse does not agree with the defect i.e. e-File in response to assesse selects No under column “Do you agree with defect?”, Assesse needs to provide the additional information as shown in the below screen.
• If the company is FII/FPI i.e. if the assesse selects YES in the dropdown displayed under Details for Error Code 3 table, further details needs to be provided by assesse as displayed in the below screen and assesse needs to click on Submit.
• If the company is FII/FPI i.e. if the assesse selects NO in the dropdown displayed under Details for Error Code 3 table, Assesse needs to provide the respective remarks in the text box provided and click on Submit.
• On successful submission of the response by the assesse, the below success screen is displayed.
• Assessees can click on “View” link under Response column to view the response submitted. The below details will be displayed.
• Click on Transaction ID to know the details of response submitted.

Note: To view the XML or ITR (PDF), please do to My Account -> e-Filed Returns/Forms
 

Withdrawal of Defective response submitted

• Assesse is allowed to withdraw the response submitted for any defective return within 3 days of submission.
• Assesse needs to click on Withdraw link under Response column.
• Details of the submitted response will be displayed. Assesse needs agree to withdraw by checking the checkbox and click on Confirm Withdrawal button.
• Once the response has been withdrawn successfully the below screen is displayed.

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Income Tax Department awarded for e-Filing Income Tax Return

Income Tax Department receives Silver Award for e-filing of Income Tax Returns project in the National Awards on e-Governance 2016-17.

The Income Tax Department is proud to announce that it has been conferred the Silver Award in the National Awards on e-Governance-2016-17 for the e-filing of Income Tax returns and other forms project in the category “Incremental Innovations” in existing projects.

The award is in recognition of the achievements of the Department in the area of eGovernance and for significant innovations in successful e-Governance programs in the current Award period. The e-filing of Income Tax returns project had already won the Silver Award in the National Awards on e-Governance in 2007-08.

The path breaking innovations introduced by the Department in the e-filing of Income Tax returns project are:

i. Introduction of Electronic Verification Code (EVC)- This innovation introduced in July 2015 enables the citizen to electronically verify Income tax returns and other forms using EVC through third party authentication services provided by Aadhaar using Aadhaar OTP, authentication by banks using net banking, ATM, bank account validation and security depositories such as NSDL and CDSL using demat account validation. The taxpayer can use any of these authenticating mechanisms to receive an Electronic Verification Code (EVC) which can be entered after submission of a return to verify and complete the process. This year alone over 1.1 Cr Income Tax returns have been electronically verified using EVC thereby obviating the need to submit a paper copy of the ITR-V to CPC Bangalore as was being done earlier.

ii. Securing taxpayer account using E-filing Vault- This innovation aims at adding one more level of authentication to the process of login to the “My Account” of the tax payer and for resetting of password by leveraging the EVC concept. E-filing Vault enables the tax payer to completely secure the e-filing account to prevent any unauthorized access.

iii. Easy compliance through Non-Filers Monitoring and E-Sahyog- This innovation aims at providing convenience to the tax payer for submitting tax compliance response through the e-filing portal. The taxpayer can now sitting at home or office any time any where respond to any letter from the Department seeking taxpayer clarification regarding non filing of return or any mismatch in Income Tax return. This innovation has the potential to significantly reduce compliance cost and increase voluntary compliance.

The Income Tax Department is spurred by the recognition received and is encouraged to initiate more innovations to facilitate taxpayers through its e-Governance programs.

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Easy Steps to Upload Income Tax Return A.Y. 2017-18

Upload Income Tax Return A.Y. 2017-18

To Upload ITR , please follow the below steps:

Step - 1 :  Download the ITR preparation software for the relevant assessment year to your PC / Laptop from the "Downloads" page.

Step - 2 :  Prepare the Return using the downloaded Software.

Gather all the information regarding your income, tax payments, deductions etc.Pre-populate the personal details and tax payments/TDS by clicking on the 'Pre-fill' button. Compare with the information you have to ensure that nothing is left out.Enter all data and click on 'Calculate' to compute the tax and interest liability and final figure of Refund or Tax payableIf Tax is payable- remember to pay immediately and enter the details in appropriate schedule. Repeat above step so that tax payable becomes zeroGenerate and save the Income Tax Return data in XML format in the desired path/place on your PC/Laptop.

Step - 3 :  Login to e-Filing website with User ID, Password, Date of Birth /Date of Incorporation and enter the Captcha code.

Step - 4 :  Go to e-File and click on "Upload Return".

Step - 5 :  Select the appropriate ITR, Assessment Year and XML file previously saved in Step 2 (using browse button).

Step - 6 :  Upload Digital Signature Certificate (DSC), if applicable.

Please ensure the DSC is registered with e-Filing.

Step - 7 :  Click on "Submit" button.

Step - 8 :  On successful submission, ITR-V would be displayed (if DSC is not used). Click on the link and download the ITR-V. ITR-V will also be sent to the registered email. If ITR is uploaded with DSC, the Return Filing process is complete.
OR
The return is not uploaded with DSC, the ITR-V Form should be printed, signed and submitted to CPC within 120 days from the date of e-Filing. The return will be processed only upon receipt of signed ITR-V. Please check your emails/SMS for reminders on .non-receipt of ITR-V.

Upload Income Tax Return process is complete now.

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Complete procedure of online bulk income tax return filing.

The online bulk e-return of Income Tax filing process is very simple even also Bulk PAN validation, Bulk PAN application, Bulk TDS return, Bulk ITR V Request, Bulk PAN/TAN Request, Bulk Digital Signature etc. also by using e-Return Intermediary (ERI) User Registration.  The filing of ITR forms with the relevant Income Tax Authorities. We can e-file the tax returns on request as well.

The ERI Registration Number is available only for Companies and Firms but it is non-mandatory. If the registering ERI Admin belongs to company/firm category, Date of Incorporation is mandatory.

e-Return Intermediary (ERI) User Features :

Pre-requisites:

• ERI Admin should be registered in e-Filing application.
• ERI Sub-user must be created and activated by ERI Admin.

To read more details for Online Bulk Income Tax Return Filing Click Here.

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Detailed procedure to file and Correction of e-TDS Return online at TIN website.

Procedure of furnishing of e-TDS statement/return online at TIN website:

Deductor/DDO is required to procure Digital Signature Certificate (DSC) for online upload of e-TDS statement/return. After registration on TIN website, an authorization letter by the Deductor/DDO should be provided on the letter head of the organisation to NSDL. Once application is approved by NSDL, user ID is created and intimated to Deductor/DDO on their registered email ID provided at the time of registration. Preparation and validation of e-TDS statement is in line with regular e-TDS statement/return (submitted at TIN-FC).Deductor/DDO can login with its user ID and DSSC and upload the validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token no. and 8 digit receipt number is generated and displayed. There is no need to submit physical form 27A in online upload. Deductor/DDO can view the status of e-TDS statement/return on TIN website.

No charges are applicable for online upload of e-TDS statement/return.

Correction of e-TDS statement/return online at TIN website:

Deductor/DDO can file a correction e-TDS statement/return for any modification in e-TDS statement/return accepted at TIN central system. Correction statement/return can be prepared by using the TDS consolidated file only, available at the CPC-TDS portal www.tdscpc.gov.in through TAN registration. Preparation and validation of e-TDS statement is in line with regular e-TDS statement/return (submitted at TIN-FC) Deductor/DDO can login with its user ID and DSC and upload the validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of correction e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token number is generated and displayed. There is no need to submit copy of provisional receipt of regular e-TDS statement/return, physical Form 27A and SSR in online upload. Deductor/DDO can view the status of e-TDS statement/return on TIN website.

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Most Important points to remember while filing of TDS Return Quarterly.

TDS Deductor must remember the following points before filing of TDS Querterly Statement which are as under :

• Correct Reporting: Cancellation of TDS statement and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS statement
• Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer
• Last provisional receipt number to be quoted in regular TDS / TCS statements: While filing new regular (original) TDS statement, it is mandatory to quote the last accepted provisional receipt number of the regular quarterly TDS / TCS statement of any form type
• TDS statement cannot be filed without quoting any valid challan and deductee row
• Late filing fee, being statutory in nature, cannot be waived
• Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN
• Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statement
• Download TDS certificate (Form 16A) from TRACES (http://www.tdscpc.gov.in) bearing unique TDS certificate number and issue to the taxpayers within due date
• File correction statements promptly in case of incomplete and incorrect reporting
• Download the justification report to know the details of TDS defaults, if any, on processing of TDS statement
• Do view your Dashboard regularly to know about your TDS performance
• Government deductors should obtain BIN (Book Identification Number) from their Accounts Officer (AIN holder) in time and quote the same correctly in TDS statement

Source: www.tdsman.com

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3rd Quarter TDS Return Filing last date is 15th Jan-2016 for Asstt. Year 2016-17

With the introduction of Section 234E, there is now a provision of stringent penalties for delayed filing of TDS returns.

• Failure to submit e-TDS Statement on time will result in fees on the deductor.
• If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
• The levied amount of fee is not supposed to exceed the TDS deductibles.
• Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.

Fees and Penalty for Late Filing of TDS Returns are as follows:

Section 234E – Levy of Fees

• Failure to submit e-TDS Statement on time will result in fees on the deductor.
• If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
• The levied amount of fee is not supposed to exceed the TDS deductibles.
• Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.

Section 271H – Penalty
    Deductor has to pay a penalty ranging from minimum of Rs. 10,000/- to One Lac rupees,

• If deductor exceeds one year time limit to File TDS Statement.
• If deductor furnishes incorrect details like PAN, TDS Amount, Payment of Challan etc.

Source: www.tdsman.com
https://www.tdsman.com/

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Remember Important points before e-Filing of TDS Return Quarterly.

Remember Important points before e-Filing of TDS Return Quarterly

Given below are the points one should remember before filing quarterly TDS statement:

• Correct Reporting: Cancellation of TDS statement and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS statement
• Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer
• Last provisional receipt number to be quoted in regular TDS / TCS statements: While filing new regular (original) TDS statement, it is mandatory to quote the last accepted provisional receipt number of the regular quarterly TDS / TCS statement of any form type
• TDS statement cannot be filed without quoting any valid challan and deductee row
• Late filing fee, being statutory in nature, cannot be waived
• Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN
• Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statement
• Download TDS certificate (Form16A) from TRACES (http://www.tdscpc.gov.in) bearing unique TDS certificate number and issue to the taxpayers within due date
• File correction statements promptly in case of incomplete and incorrect reporting
• Download the justification report to know the details of TDS defaults, if any, on processing of TDS statement
• Do view your Dashboard regularly to know about your TDS performance
• Government deductors should obtain BIN (Book Identification Number) from their Accounts Officer (AIN holder) in time and quote the same correctly in TDS statement

Source: www.tdsman.com

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The basics of annual tax filing for startups – due dates and more

If you are a business owner, September 30 and October 30 are two important dates for you.  September 30 is the due date for filing the Income Tax Return for your company, whereas  October 30 is the due date for filing the annual financial statements with the Registrar of Companies (RoC). They are more crucial if you are a VC/Angel funded startup or looking for such third party investment. A zero non-compliance business environment is the pre-requisite for this.

In the fervour of starting a new business, it’s easy to overlook the long-term impact of a sustainable regulatory decision that extends to recording the initial transactions, filing your tax return and other mandates. In the rush to go to market, it’s easy to think the business model itself will carry the day. Two out of three startups die out in their first three years of operation. While the reason may not be related to tax and regulatory non-compliances, this builds on the cause.

Most startups think that since they have no business transactions or they have incurred losses, they do not need to file their taxes. The reality, however, is every company/Limited Liability Partnership (LLP) has to comply with five basic compliances irrespective of its business situation. They are detailed below:

1.    Accounting and Book Keeping
Recording the transactions and preserving bills and invoices to back financial statements is something that most business owners dread. Avoiding this leads to serious repercussions. For example, at the time of incorporation, a company pays the registration fees, name approval fees and stamp duty to RoC. Further, the promoters of the company also hire a professional firm to guide them through the entire incorporation procedure, which again involves cash outflow.

These expenditures, though pre-incorporation in nature, provides tax-saving benefits to the company, to the extent of one-fifth of such expenses every year. Further, invoices carrying break-ups of VAT and service tax is a boon, as far as claiming credit for both is concerned. The company should keep records of all expenses made specifically for business, since these are deductible against business revenues. Even if the company is suffering losses, it is advisable to maintain records in order to raise the losses and set it off with future profits.
Penalty for Non-Compliance:

In case of non-compliance, persons responsible shall, in respect of each offence, be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than Rs. 50,000 but which may extend to Rs. 5,00,000 or both in case of companies.

2.    Income Tax Return Filing
Filing of income tax return is the most authentic proof of the income earned as all are required to file it.  But many do not file tax returns as they are unaware of the procedure. Startups should appoint a tax consultant who will help them avail the benefits of filing tax return in time. Some of the benefits include:

• Filing timely returns saves one from the assessments of income by the income tax officials.
• A business having losses can carry it forward and get it set-off with future profits.
• For making an investment, filing income tax return on time is essential.
• Tax refunds can be claimed only when income tax return is filed.

The due date for filing this return is September 30 each year. However, if transfer pricing provisions are applicable for your business, this due date changes to November 30 each year.
Penalty for Non-Compliance:

Late filing of return will attract interest u/s 234A i.e. if the assessee fails to file income tax return within the time prescribed by Section 139, he shall be liable to pay interest at one per cent per month or part of the month from the due date of filing of return to the actual date of filing of its return. A further penalty can be levied up to Rs. 5,000 for non-filing of tax returns us 271F.

However, for the purpose of filing income tax filings, the year has to close on March 31 each year. For that purpose, you only need to file a simple format of Profit and Loss Account and Balance Sheet with the department and then prepare the return and file it within the prescribed due date.

3.    Statutory Audit Compliances
Companies are mandatorily required to get their accounts audited annually whereas only those LLPs having a turnover of more than Rs 40 lakh or Rs 25 lakh contribution in any financial year are required to get their accounts audited annually as per the LLP Act.

The LLP Act provides that the partners of such LLP if decided not to get audit of the accounts of the LLP then such LLP shall include in the Statement of Account and Solvency a statement by the partners to the effect that the partners acknowledge their responsibilities for complying with the requirements of the Act and the Rules with respect to preparation of books of account and a certificate in the Form 8. However no such relaxation is provided to companies.

4.    ROC Compliances
Every company (having or not having share capital) and LLP has to file its financial reports with the Ministry of Corporate Affairs annually. It constitutes a component of ‘Annual RoC Filing’ mandated by Companies Act, 2013. As a part of annual filing, Companies incorporated under the Companies Act 2013, are required to file the following e-forms with the RoC:

Penal Provisions:

The penal provisions of RoC are so stringent that companies have been shut down due to this. The additional fees can be as high as upto 12 times of normal fees. Further, there also provisions where huge penalties are laid per day on officers as well as the companies simultaneously. Companies Act 2013 also has provisions of hard crust penalties like imprisonment of company directors on grounds of severe non-compliance.

As a part of Annual Filing, LLPs are required to file the following e-forms with the RoC:



Penal Provisions for Limited Liability Companies –
Surprisingly, there are no slabs for late filing fee for LLPs. In this regard, the straight rule of computation of late filing fee is Rs 100 per day of delay in filing. The number of days of delay in filing is calculated from the due date of filing to the actual filing date.

As mentioned earlier, these compliances have to be adhered to irrespective of your business situation. Non-compliance of these provisions has the capacity to shut down a full-fledged business. If you still have not started working on this, we suggest you buck up. You still have 21 days at hand!

Source: Yourstory.com

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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

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Due Date for TDS Return Filing Quarter-I for Fin.Year 2015-16 and Fees & Penalty thereon.

The Last date of TDS Return filing for Quarter 1 of Fin. Year 2015-16 is 15th July, 2015. After that your TDS Return comes under Late Filing. In that case you may punishable as Fees and Penalty for Late Filing of TDS Returns.  Therefore dont delayed filing of TDS Returns for Fin. Year 2015-16.  The details for Quarter-I Procedure are as under:

With the introduction of Section 234E, there is now a provision of stringent penalties for delayed filing of TDS returns.

• Failure to submit e-TDS Statement on time will result in fees on the deductor.
• If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
• The levied amount of fee is not supposed to exceed the TDS deductibles.
• Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.

Fees and Penalty for Late Filing of TDS Returns of Fin. Year 2015-16 for Quarter-I are as follows:

Section 234E – Levy of Fees 

• Failure to submit e-TDS Statement on time will result in fees on the deductor.
• If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
• The levied amount of fee is not supposed to exceed the TDS deductibles.
• Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.

Section 271H – Penalty

• Deductor has to pay a penalty ranging from minimum of Rs. 10,000/- to One Lac rupees,
• If deductor exceeds one year time limit to File TDS Statement.
• If deductor furnishes incorrect details like PAN, TDS Amount, Payment of Challan etc.

Free Download TDS Software (Click Here)

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Important Information - TDS Return - Resons to reject the correction in Salary Details and Deductee Records by TDS (CPC).

Recently TDS (CPC) has clarify that reasons to reject the correction in salary detail records and Reasons to reject the correction in deductee records are as follows respectively:

Rejection reasons pertaining to salary details are as follows:

• In case of salary detail PAN update or delete of salary detail record, last total gross income should match with corresponding value in regular / previous statement
• Salary detail record on which correction is filed does not exist in the regular / previous return
• In case of addition of salary detail record, the record number should be unique and in sequence with the existing records in regular / previous return.

Rejection reasons pertaining to deductee details are as follows:

• In a correction statement that updates / deletes deductee rows, verification keys from deductee data that should match with corresponding fields in regular / previous return are – Last PAN, Last total amount deducted at source, Last total amount deposited
• Updation / deletion on deductee record is submitted in a correction statement but this deductee record does not exist in previous/ regular return
• Valid PAN to invalid PAN update is not allowed for a deductee row
• Deductee detail record number should be unique in case of addition of deductees
• If value of Reason for non-deduction / lower deduction / higher deduction / threshold field as per regular or last correction statement is ‘C’ , then update can be performed only on ‘PAN’, ‘Amount of Payment’ and ‘Date of Payment’
• Deletion of deductee record having value C in Reason for non-deduction / lower deduction/ higher deduction / threshold field, is not allowed
• Valid PAN to another valid PAN update can be done only once for a given deductee row.

Source: www.tdsman.com

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Tax Benefits, Higher Returns make NPS Hot Property now.

Finance minister Arun Jaitley has given millions of taxpayers a reason to save for their retirement. Up to Rs 50,000 invested in the New Pension System (NPS) can be claimed as a deduction under the new Sec 80CCD (1B). Though the Budget has not altered any feature of the NPS, the additional deduction is a big incentive for investors. A taxpayer in the 30% tax bracket can save up to Rs 15,450 in tax every year.

Financial planners believe that the time has come for investors to open NPS accounts. "Till now, we did not recommend the NPS. But it has now become attractive because of the additional Rs 50,000 tax deduction," said Anil Rego, CEO, Right Horizons. Planners, who were already recommending NPS to their clients, are thrilled by the Budget proposals. "The NPS has become better with one more incentive and we will continue to recommend it," said Suresh Sadagopan, founder, Ladder7 Financial Advisories.

But there are also those who think that one should not be swayed by tax benefits alone. "An additional deduction should not be the only reason to invest in the NPS. Go for it if it suits your risk profile and investment horizon," said financial advisor Surya Bhatia. What Bhatia is hinting at are the investment rules of the NPS that cap the equity allocation to 50% of the corpus.

Younger investors might find this too conservative for their risk profile. There is no reason why the equity component should be restricted to 50% for someone who enters the NPS at 25 and has more than 35 years to retirement.

There is another problem. The 50% allocated to equity is invested in Nifty stocks in the same proportion as their weight in the index. So, investing in the equity fund of the NPS is essentially like investing in an index fund benchmarked to the Nifty. Though this does reduce the risk, it also caps potential returns. If you are investing in the NPS, opt for the maximum 50% exposure to equity. Given that the corpus will be invested in Nifty stocks, there is little reason to worry.

For investors who cannot decide the allocation, the Lifestage Fund is a useful option. Under this, the allocation to equity is defined by the age of the individual. This is the default option to be followed if the investor does not mention the desired asset allocation. However, some experts think this is not a good option because it is too conservative.

Though the deduction offered under Section 80CCD (1B) is Rs 50,000, it is not advisable to put down the entire amount at one go. It is best to stagger your investments across several months, much like the SIP strategy in a mutual fund. However, don't make too many small contributions. There is a transaction charge of 0.25% or Rs 20 (whichever is higher) on every contribution. If you invest Rs 500-1,000 every month, you pay Rs 20 per contribution, which works out to 2-4%.

The best part is that you are not stuck to one fund for life. Unlike a pension fund or Ulip, investors in the NPS can choose from six pension fund managers and even shift from one to another if they are not happy with the performance or services of their pension fund.

But you are allowed to switch managers just once in a year. You can also invest only through one pension fund manager. The Budget provided a tax benefit on NPS investments but did nothing to address a long-standing problem. Under the current rules, the NPS corpus is taxable at the time of withdrawal.

This needs to be fixed to provide a level-playing field to the NPS. Other retirement options such as PPF and provident fund are tax-free on withdrawal. Even insurance policies give tax-free income under Sec 10 (10d). The other problem is that of compulsory annuities. Up to 40% of the corpus must be used to buy an annuity that gives monthly income to the investor. This is a big discouraging factor for investors. 

Source : www.economictimes.indiatimes.com

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Charges collected for late filing of TDS return is a fees and not a tax

The fee sought to be levied under section 234E for late filing of TDS return is not a tax that is sought to be levied on the deductor. If the section does not empower the AO to condone the delay for furnishing of TDS return, then the said section shall not stand onerous.

Facts of the case:

Petitioner, a practicing Chartered Accountant, challenged the constitutional validity of section 234E.

Section 234E – Levy of Fees:

Failure to submit e-TDS Statement on time will result in fees on the deductor.

If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.

The levied amount of fee is not supposed to exceed the TDS deductibles.

Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.

The petitioner argued that legislature had categorically termed the levy under section 234E of the Act as a “fee”. It necessarily could be levied only in the event the Government was providing any service. In the absence thereof, the said section seeks to collect tax in the guise of a fee.

He further submitted that the provisions of section 234E were extremely onerous as the AO was not vested with any power to condone the delay in filing the TDS return and there was also no provision of appeal against order of AO.

It was held that:

The High Court held that the the Income Tax Department is under obligation to process the income tax returns within the specified period. If the information of TDS is not furnished by the deductor, the department cannot accurately process the return.

If the income tax returns having refund claims were not processed in a timely manner, it would result in delay in issuing refunds or raising of infructuous demands. Late payment of refund also affects the government financially as the Government has to pay interest for delay in granting the refunds.

To avoid such interest payment, furnishing of TDS returns within the prescribed time frame is necessary. The legislature viewed that the TDS return was not furnished within the due date. This led to an additional work burden upon the Department due to the fault of the deductor.  To compensate for the additional work burdened upon the Department, a fee was sought to be levied under section 234E. Thus, Section 234E is a fee which is charged for the extra service which the Department has to provide due to the late filing of the TDS statements.

Even if right of appeal is not there in the statute, the aggrieved person could anytime approach to the Court under Article 226/ 227 of the Constitution of India, as the case may be. Therefore, the Court held that merely because no remedy of appeal was provided for, the provisions of section 234E were onerous.

Source: Mr. Alok Patnia, founder of Taxmantra.com

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e-Filing Return reminder for Assessment Year 2014-15 email by CBDT

Recently, CBDT has been sent an e-mail to those assessees whose Income Tax Return for Assessment Year 2014-15 yet not filed in Income Tax Department by e-filing process.  This reminder is based on data available with e-filing website of Income tax India which filed by assessee in previous year.  By this reminder, department of Income Tax asked some questions in a online form in which Assessee has to inform or provide the reason for non filing of return. Assessee can choose the option applicable to him and after choosing his option he can click the submit button given in the email, which is as under :

A format of one such letter is as follows :-

Reminder for Filing of Income Tax Return for Assessment Year 2014-15 – PAN: ABCPJXXXXP
 

Dear Taxpayer,

          This is a gentle reminder for you to file your Income Tax Return for Assessment Year 2014-15. Though, the due date for filing returns for AY 2014-15 is over, there is a provision under the Income Tax Act to file a belated return which may help you to remain compliant with requirements of law. E-filing is simple, easy and convenient as you would have experienced in previous years.

          You are, therefore, kindly requested to login to https://incometaxindiaefiling.gov.in and download the free return preparation software with a host of new features to help you in preparing the Income Tax return and submit your return. You can also prepare and submit ITR-1 and ITR-4S online.

          Please take some time to browse through all the value – added services offered on the E-filing website that will help you prepare your return accurately and guide you in case of any prior pending items.

• Will be submitting ITR shortly.
• Already submitted the ITR of AY 2014-15 online.
• Already submitted the ITR of AY 2014-15 in paper-mode.
• Income is below taxable limit for AY 2014-15.

         Needless to mention that the quicker you submit your return and send the signed ITR-V (ITR-Verification) form to CPC, Bangalore, the faster you will get your refund, if any, credited to your bank account. As on 23rd December 2014, over 58.17 lakh refunds have already been issued for AY 2014-15! File early to get your return processed soon.

Regards,
e-Filing Team,
Income Tax Department

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Now Taxpayee Login for e-filing Income Tax Return through Bank Account.

This new utility recently provided by www.incometaxindiaefiling.gov.in, by this facility taxpayee can login through Bank Account instead of Password in case when Taxpayee forgetten login password to sign. The forgotten option can be used to recover Passwod  at incometaxindiaefiling.gov.in using the net-banking facility of your bank.  Still this facility is not available in all Indian Banks, it is only available in some banks detailed below :

At this time the facility of direct e-Filing Login through Net banking is available through the following banks:

• Corporation Bank-Retail Banking: https://www.corpretail.com/RetailBank
• Corporation Bank-Corporate Banking: https://www.corpbank.biz/CorpBank/
• Union Bank of India: https://www.unionbankonline.co.in/
• Oriental Bank of Commerce: https://www.obconline.co.in/
• City Union Bank Ltd: https://www.onlinecub.net/
• Bank of India: http://www.bankofindia.co.in/english/home.aspx
• Kotak Mahindra Bank: https://www.kotak.com/
• Punjab National Bank: https://netbanking.netpnb.com/

The detailed steps are as follows -

• Taxpayer should be a registered user of Income Tax e-Filing Portal.
• Taxpayer should have already submitted the PAN details to the Bank. PAN is required to identify the taxpayer’s e-Filing account with the Income Tax Department.
• Taxpayer have to first go to the Internet/ Net / Online Banking website of the Bank which has already registered for this facility with the Department.
• Taxpayer after logging into his Net Banking account should select “Income Tax e-Filing Login” tab/menu item
• Taxpayer should Select the account number and enter the PAN for verification and click Submit
• Taxpayer should Accept the Rules and Regulations details
• Taxpayer should confirm that he may be redirected to his Income Tax Department e-Filing account – home page.
• Taxpayer can now reset the password and also avail of all services provided by the e-Filing Website of Income Tax Department, including, filing Income Tax Return.

Advantages of using this new facility

• Taxpayer gets direct access to his e-Filing account even if he has forgotten his password.
• Taxpayer gets a secure and safe way to login into his e-Filing account.
• Taxpayer can safeguard his e-Filing account by selecting/opting for “Password Resetting” only by using Digital Signature Certificate or through this new facility of direct login from his net-banking account, thereby preventing others from unauthorized access to his account. (coming soon….)
• Other benefits (coming soon…..)

Detailed steps using example of Corporation Bank Net banking

• Go to https://www.corpretail.com/RetailBank/
• Login in to your Corporation Bank Net banking account using your Bank provided User ID and password
• Corporation Bank Net banking Homepage < Select Utility Payments < Select “Income Tax e-Filing Login”

Select Account Number (IFSC Code) from the drop down

• Enter PAN
• Accept the Terms & Conditions
• Click on Submit

• Click OK to get re-directed and automatically logged into Income tax Department e-Filing account (https://incometaxindiaefiling.gov.in)

• You will get re-directed to Income Tax Department e-Filing website (https://incometaxindiaefiling.gov.in) and the home page showing the “Dashboard” after login will appear.

• e-Filing Portal Taxpayer Dashboard

• You may now reset your password using “Profile Settings” or avail of any service offered.
• Remember: This facility is a safe and secure method for direct login to your Income Tax Department e-Filing account only and is available ONLY through your Bank website after you have logged in and not through any other organization or entity or website.
• Note: Your net-banking User ID or password is NOT shared by the bank to the Department

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Declaration for Non-Filing of TDS Return till date - TRACES

Recently, TRACES has found that TDS Deductor has not filed TDS return in time even if Deductor not deduct from Deductee before receiving notice from Income Tax Department.  To avoid this such type of Notice from Income Tax Department, CPC (TDS) has started an option to give declaration by deductor himself alongwith Reason of non filing TDS return.  A detailed note on submission of declaration in the interest of Deductor is as under :

CA Pratik Anand

The last date for filing the TDS Statements for the Second Quarter of FY 2014-15 is already over. There will be many deductors who did not deduct any tax during the relevant quarter and therefore did not file any statement for deduction of tax at source u/s 200(3) of the Income Tax Act’1961.

But do you know that for such deductors who have a TAN Number but have not filed the TDS statement as they did not deduct any tax during the relevant tax period, CPC (TDS) has started a functionality where the deductors can file a NIL Declaration i.e a declaration that the deductor did not deduct any tax during the relevant tax period and was subsequently not liable to file a tds statement.

Ques: What is a NIL Declaration of TDS Statement?

Ans: A NIL Declaration is basically a declaration for non-filing of TDS Statements for those deductors who were not liable to deduct any tax during the relevant quarter or have not deducted tax during any quarter and subsequently did not file a TDS Statement U/s 200(3) of the Income Tax Act’1961 for any quarter.

Ques: Is it mandatory to file a NIL Declaration?

Ans: As per Income Tax Act’1961 and the Income Tax Rules it is not mandatory file a NIL TDS Return.

Since filing NIL TDS Return was neither mandatory nor possible. The CPC (TDS) was having a problem distinguishing between:

• Deductors required to file return but not filed the TDS Return.
• Deductors not required to file return.

Therefore, In order to prove that the deductor was not required to file a TDS Return, it is advisable that the deductors should file A NIL Declaration of TDS Statement.

Ques: Where can I file a declaration for not filing a TDS Statement?

Ans: A Declaration for not filing the TDS Statement can filed by logging into the CPC (TDS) Website: www.tdscpc.gov.in 

Ques: What is the procedure for a filing a Declaration for not filing TDS Statement/NIL Declaration?

Ans: Procedure for filing of declaration for non-filing of TDS statement is given below:

• Login through your registered id at www.tdscpc.gov.in
• Go to “Statement/Payments TAB after login >then declaration for Non filing of TDS statement (as shown in the picture below).

On clicking declaration for Non filing of TDS statement link you will get screen with options as shown below:

• Select financial year.
• Select Quarter.
• Select Fom type- 24Q, 26Q, 27Q or 27EQ.
• Select reason for non-filing of statement from drop down menu.

All fields are mandatory to fill.

• In the Financial year option, the system shows 2013-14 and 2014-15. It means that a Declaration for non-filing of TDS Statement can filed for these two years only.
• In the Reasons column, the deductor can choose from the following options as shown below:
• Not liable to deduct for the selected statement period.
• No Payment made/ Credit to Deductee.
• Temporarily Business Closed
• Permanently business closed
• Payment below threshold to deductee
• Branch Shifted
• Any other reason

Also note following points:

  Fields marked by asterisk (*) are mandatory.

• ‘Specify the exact reason’ field will be mandatory if user selects ‘Any Other Reason’ in ‘Reason’ drop down.
• If deductor has permanently closed his business, the deductor should surrender his TAN to the jurisdictional A.O.

After giving the reason for non-filing, Click proceed button after selecting required data. In next screen, you have to give a declaration/certificate as shown in the picture given below.

After certificate, following message will be shown.

“Filing Status for the statements selected by you has successfully changed. You will receive the details of the statements for which filing status has changed on your email.”. After this the your statement status will change to NON-FILING.

• The deductor can change back this status from non-filing and can file return, if required at later stage or you have wrongly updated status for incorrect period. But change facility is available for only one time for a selected period. To change the status you have to go again through “Statement/Payments TAB after login > then declaration for non-filng of TDS statement.
• Statement selected earlier as “non-filing can be updated by selecting the statement for a given period and click change filing status, and in next screen, you have to reconfirm your request by clicking the proceed button.

After adding first statement to non-filing status, next time you will get screen as shown above and you can add other statement to non-filing status through add statement link.

Other Important points

User will not be able to declare a statement for a Financial Year, Quarter and Form Type for Non-Filing for the following cases:

• If user has already declared that statement for Non-Filing.
• If user has changed the filing status of that statement from Non-Filing to Filing.

Source: www.tdstaxindia.com

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Due Date of ST Return 1st Quarter extended to 14.11.2014

CBEC has issued an order to extend due date of Service Tax Return for 1st Quarter to 14.11.2014 vide No. 02/2014-ST dated 24th Oct., 2014 for the period from April-2014 to Septermber-2014.  The Actual due date of Service Tax Return is 25th October, 2014. The extended due date of filing of Service Tax Return order is as under :

F.No.137/99/2011-Service Tax

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

***

New Delhi, the 24th October, 2014

ORDER NO. 02/2014-SERVICE TAX

In exercise of the powers conferred by sub-rule (4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1st April 2014 to 30th September 2014, from 25th October, 2014 to 14th November, 2014.

The circumstances of a special nature, which have given rise to this extension of time, are as follows:

“Natural calamities in certain parts of the country.”

Himani Bhayana

Under Secretary (Service Tax)

Central Board of Excise and Customs

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