Income Tax News, Income Tax e-Filing, IT Returns filing, Income Tax Return File: Guide, Examples, E-filing Process

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→ Income Tax Return ←

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↑ Click on the following link for a complete Guide on income tax in india. Know about Income Tax efiling, Income tax slabs, Budget, calculate income tax, Income tax deductions and TDS

File your ITR today as tax dept rules out any extension

The dept requests taxpayers to file their return in time, a top official said

 

The last date for filing of IT Return (ITRs) for the financial year 2016-17 will not be extended beyond today's (July 31) deadline, a top official said on Sunday.

"The last date for filing of ITRs remains July 31. There are no plans to extend this deadline. The department has already received over 2 crore returns filed electronically. The department requests taxpayers to file their return in time," the official said.

On reports of the tax filing website facing some glitches, the official said that no major glitches have been reported with the department's e-filing website barring a few times when the portal was "interrupted for maintenance".

The department has also issued advertisements in leading national dailies in the last few days stating that taxpayers should disclose their income "correctly" and file their ITRs on or before July 31.
The linking of Aadhaar number with the PAN (Permanent Account Number) of a taxpayer has also been made mandatory for the filing of an ITR, beginning July 1.

The tax department has also asked taxpayers to declare cash deposits made in bank accounts aggregating to Rs 2 lakh or more, post-demonetisation between November 9-December 30 last year, in the ITRs....... Read Full Article

Today is the last day for filing tax returns: Step by step guide to do it in a jiffy

Have you filed your ITR? It's the last day to file your tax returns

 

 

Have you filed your tax returns? Hurry now! Before the day ends, all individuals have to file tax returns for 2016-17 fiscal or assessment year 2016-17. An official of the income tax department on Sunday said that the last date for filing ITRs will not be extended.

Here is how you can file your ITR online:
People with salary income who are eligible to use ITR 1 or ITR 4 form can file their tax return completely online via the income tax efiling website without having to download any form/software. Follow these steps:↓
1. Create your e-filing account on the Income Tax website https://incometaxindiaefiling.gov.in and register yourself. Registration will be completed by clicking activation link sent via email and providing one-time password (OTP) received on the mobile. Click on the 'Registered user' if you have already registered yourself on the website. Download the Form 26AS and Form 16. Form 26AS is a consolidated tax statement which summarises the amount paid against each PAN number.

2. Next, select the relevant form and assessment year for which the return has to be filed. Here taxpayer can pick his address either from the PAN database, from previously filed return or fill in new address. The department here asks you whether you want to digitally sign your return. If selected 'Yes', you are required to upload your signature which needs to be pre-registered at the income tax filing website.

3. Click on the 'Submit' button and the website will redirect you to the page for filling the form selected by you.

4. ITR V will be generated. Sign the ITR V in blue ink and send it to the Income Tax Department - CPC, Post Bag No - 1, Electronic City Post Office, Bengaluru by ordinary post or speed post within 120 days.

5. Check your emails for an acknowledgement of the receipt. You will also receive an SMS on your mobile number acknowledging the receipt.

In case you are still confused, you can visit ClearTax website and seek assistance from CAs or file it online. Here are the steps

No extension in July 31 deadline for filing I-T returns, clarifies tax dept

Earlier this month, FM Jaitley launched the taxpayers service module and mobile app 'Aaykar Setu'

 

 

Amid reports of an extension of the last date to file for Income Tax return, the Central Board of Direct Taxes (CBDT) on Saturday while denying the same said no such proposal was made.

The last date for Efiling of income tax, the chamber clarified, would remain July 31, while urging taxpayers to ensure complete adherence to norms and timely completion of the procedure.
Earlier this month, to render better services to taxpayers and reduce grievances, Finance Minister Arun Jaitley launched the taxpayers service module and mobile app 'Aaykar Setu'.

"This is an important step forward by the CBDT for several reasons, out of which the principal reason being technology. This app is designed to help discharge any queries of the citizens without any external help," said Jaitley while addressing the reporters at the launch in New Delhi.

Adding to this, he said that the app reduces the interface between the department, which is the assessing officer and the assessee in terms of the physical interface.

Available in android version and desktop version, the new app is a new step by the Income Tax Department (ITD) to directly communicate with the taxpayers, on a range of multiple informative and useful tax services aimed at providing tax information at their fingertips.

"It will help to improve the image of the department," added Jaitley while saying that the app will have many positive consequences....Read Full Article

Govt issues notices to 6,000 NGOs for not filing annual returns

Around 18,000 non-profit organisations were asked to upload the details within a month's time

 

More than 18,000 NGOs did not file their annual income tax filing and expenditure statements for the five-year period between 2010-11 and 2014-15, the Rajya Sabha was informed on Wednesday.

"More than 18,000 NGOs, who did not file due annual tax returns from the financial year 2010-11 to 2014-15, were given one month time to upload the missing annual returns pertaining to the above period," Minister of State for Home Kiren Rijiju said in a written reply.

Rijiju said more than 8,000 NGOs complied with the income tax efiling directions of the government. Around 6,000 defaulting ones have been served show cause notices, he said.

The minister also said a number of NGOs, registered under the Foreign Contribution Regulation Act (FCRA), 2010, with invalid bank accounts were asked to validate the same.

"Close to 25,000 NGOs are registered under FCRA, 2010, and as per record, over 20,000 NGOs have valid bank account numbers," he said.... Read Full Article

Over 683,000 firms with PAN didn't file I-T returns in FY17

Delhi tops, with over 144,000 such firms, Mumbai comes next with 94,155

 

Over 6.83 lakh companies have a permanent account number (PAN) but did not file income tax return for assessment year 2016-17, Parliament was informed on Tuesday.

The number of companies which have PAN but do not file income tax returns have increased over the past five years from 4.09 lakh in assessment year 2012-13, to 4.60 lakh (AY 2013-14), Minister of State for Finance Santosh Kumar Gangwar said in a written reply to a question in the Rajya Sabha.

The number was 5.19 lakh in AY 2014-15, 5.73 lakh (AY 2015-16) and 6.83 lakh (AY 2016-17).

As per the database of the Income Tax department, Delhi had the most number of such companies at over 1.44 lakh, followed by Mumbai (94,155) which had PAN but were non-filers for assessment year 2016-17.

Tamil Nadu was third in the region-wise list at 63,567 companies, followed by West Bengal and Sikkim (taken as one region) at 60,983.

"Non efiling of income tax by a company does not necessarily indicate its indulgence in money laundering activities," Gangwar said.

However, in cases where instances of money laundering come to the notice of the tax department, suitable action is taken as per law, he said.... Read Full Article

Got an I-T notice on cash deposits? Don't panic and follow this guide

If you receive such a notice, do not panic or ignore it

 

 

If you receive such a notice, do not panic or ignore it. First, verify that the PAN (Permanent Account Number) stated on the notice is yours. Since the IT return issues notices to a specific PAN and not based on your name, there are chances that an erroneous notice may have been sent to you instead of someone else with the same name or birth date as yours. If you have received such a notice, irrespective of whether you have made the transactions or not, you must log into your account to submit a response. Here's how:

• Visit the income tax department website, https://incometaxindiaefiling.gov.in, and log into your e-filing account.
• Click on 'Cash Transactions, 2016' under the 'Compliance' tab. The page will then list all cash deposits made by you between November 9 and December 30, 2016.
• Before you begin the verification process, make sure you have all pertaining documents such as receipts for cash income, past tax returns, etc.

You can then begin the process to file your online response in three simple steps, which are as follows: → Income Tax Efiling ←
Step 1: First, ensure that the transactions listed have been made by you. Even if you have not received any notice from the I-T department, but have deposited cash during demonetisation, it is advisable to log into your e-filing account to check the 'Compliance' section. Based on your assessment of the transactions, select either 'The account relates to this PAN' or 'The account does not relate to this PAN'. After selecting the applicable option, you will be directed to the next step for further verification.

Step 2: Confirm if the amount stated on the page is accurate. In case of a discrepancy in the amount mentioned and the actual amount deposited by you, enter the correct amount, and proceed.

Step 3: After confirming the amount deposited, you need to provide the complete details regarding the source of cash and the category it belongs to, such as cash in hand, payment received, etc....... Read Full Article

Benami property: Aadhaar-PAN link opposed in name of privacy

Arun Jaitley said, 'People should voluntarily made disclosures and come within the tax net'

 

Finance Minister Arun Jaitley Monday said example needs to be set to create a deterrent ag the inst use of anonymous people to hide ill-gotten wealth, amid some politicians and their family members coming under the scanner for alleged benami deals.

Referring to opposition of PAN-Aadhaar linkage, he said it is an "effective anti-evasion measure" and will get rid of multiple PAN cards and mismatch in income and expenditure, but it is being opposed "in the name of privacy".

He also said that the government is using technology to reduce the interface between a tax department official and the taxpayer to not just cut compliance cost but also corruption and harassment. → Efiling Of Income Tax ←

Addressing tax officers at the Income Tax Day event here, he said that tax rates have to become more reasonable but for that to happen, the tax base has to be widened by including more people in the net.
"These days we are finding political leaders also resorted to (benami dealings)," he said, without naming anyone. "Therefore (we are) unearthing them." → Income Tax Filing ←

He said the government has taken steps under the stringent Benami Transactions (Prohibition) Amendment Act, 2016 that provides for confiscating properties of those who use name of other people to convert unaccounted wealth into white.

"Unless we can set some examples, we set down right deterrent against such kind of practices" can this practice of benami properties end, he said..... Read Full Article

To find dormant firms, I-T dept to share tax details of companies with govt

Dept will share PAN, ITRs, audit reports and SFT with corporate affairs ministry

 

 

The Income Tax Department will soon share PAN (permanent account number) and ITR (I-T returns) details of companies with the corporate affairs ministry, amidst the government stepping up efforts to curb the menace of black money.

The sharing of the "bulk information" is primarily aimed at identifying dormant companies that are misused for tax evasion and money laundering.

The Central Board of Direct Taxes (CBDT), which frames policy decisions for the tax filing department, on Thursday issued an order on stipulated sharing of bulk I-T data with the Ministry of Corporate Affairs.

According to the order, accessed by PTI, the department will "share PAN, Income Tax Returns and audit reports of corporates under section 44AB of the I-T Act as well as SFT (statement of financial transaction) relating to these companies".

"The department will also share identified PAN and Corporate Identification number (CIN), PAN-Director Identification Number (DIN) and any other information considered necessary for identifying dormant companies," it said.

The I-T department and the corporate affairs ministry will soon ink a memorandum of understanding (MoU) on sharing of data that will also include "mode of transfer of data, maintenance of confidentiality, mechanism for safe preservation of data and weeding it out after usage, and the information which shall be furnished by the ministry to the I-T department."...... Read Full Article

Now, India Inc vendors under I-T lens, firms asked to give payment details

I-T officials say many lawyers, CAs, consultants, designers have not filed their TDS

 

 

The income tax department has asked large corporate entities, including multinational firms, to furnish details of employees off the payroll to check whether they are filing tax returns after deduction at source, or TDS.

According to I-T officials, many lawyers, chartered accountants, consultants, and designers — not on the payroll of companies — have not filed IT return (ITR), fearing they would have to disclose their full income.

The move is part of the government’s efforts to increase the tax base and nab potential evaders. The deadline for filing returns for the assessment year (AY) 2017-18, to track income in the fiscal year 2016-17 (FY17), is July 31.

Such professionals who could be potential evaders have been identified through a complete income tax efiling, by linking their banks and transaction details.

The tax department, through its non-filer monitoring system, has identified about 13.7 million people with potential tax liabilities who have not filed returns. A preliminary examination of the data has revealed that many third-party vendors in different tax brackets have not been filing returns, while some have been inconsistent in doing so.

“Such measures are part of the second phase of the tax department’s Operation Clean Money, to bring those who have declared unaccounted cash and deposits after demonetisation under the tax net,” said a senior official of the Central Board of Direct Taxes (CBDT). Sources said the CBDT had set the target of adding 10 million taxpayers in the current financial year (FY18).....  Read Full Article

Presidential Election 2017: Who will be the next President of India?

Incumbent Pranab Mukherjee's term as President ends on July 25

 

 

Presidential Elections 2017 :  On July 17, of the total 4,880 valid voters — 4,109 members of legislative Assemblies (MLAs) and 771 elected members of Parliament (MPs) — 99.49 per cent cast their vote to elect the next President of India. In the fray were the National Democratic Alliance's (NDA's) candidate Ram Nath Kovind, and the Opposition candidate Meira Kumar.

The counting of votes is scheduled to begin at 11 am on Thursday, July 20, but it is believed that Kovind has an edge over Kumar. However, should he win, the margin of his victory will be interesting to note, given that there were reports of many instances where voters from Opposition parties also voting for Kovind in the election.

“The voting was close to 99 per cent. I think this would perhaps be the highest-ever percentage,” Anoop Mishra, Lok Sabha, secretary general and returning officer for the election, had said on Monday.

Mishra had said while the sanctioned strength of the Lok Sabha (LS) and the Rajya Sabha (RS) is 776 (543 and 233), 771 MPs were eligible to cast their votes. There are two vacancies each in the LS and the RS, while one BJP MP, Chhedi Paswan, did not have voting rights following a judicial pronouncement.

Of the total 771 MPs who are entitled to vote, 768, or 99.61 per cent, cast their votes. Likewise, of the 4,109 MLAs entitled to vote, 4,083 or 99.37 per cent cast their votes, officials said.

Catch all the Live Updates → Presidential Election 2017 Results ←   

A step-by-step guide for obtaining your GSTIN

The GST registration process has been reopened from June 25 and will continue for the next 3 months

 

Under the VAT and Service Tax regime, TIN number and Service Tax Registration Number were issued by the state and the Centre. However, under the Goods and Services Tax (GST) regime, all taxation will get consolidated into a single platform and taxpayers will be registered under a single authority. All the taxpayers who migrate and register under GST will receive a GSTIN — Goods and Service Tax Identification Number. Here is what the GSTIN format looks like-

→ Income Tax Filing ←  → Tax Filing ←  → IT Return ←

Under the GST regime, every business providing goods and services with a turnover exceeding Rs 20 lakh is required to register as a normal taxpayer. This registration is important because only a registered business can avail benefits like the seamless flow of Input Tax Credit (ITC) on their raw material purchases.

The GST registration process has been reopened from June 25 and will continue for the next 3 months.

How to get a GSTIN
1. Log on to that GST online portal www.gst.gov.in
2. Go to 'Register Now' and fill in Part A of the application with your name, e-mail ID and mobile number
3. The portal will verify your details by sending an OTP to your mobile and email
4. Once the verification process is completed, you will receive the Application Reference Number (ARN) via mobile or email
5. Now you can fill Part B of the application using the ARN. The documents you will require in this step include:
→ Photographs
→ Constitution of taxpayer
→ Proof(s) of place of business
→ Bank account details
→ Authorisation form
6. Fill in all the information and upload all the documents that are required in the application and submit the application using DSC or Aadhaar OTP

Penalties for not registering under GST → Read Full Story

Want to save on tax? Here are deductions you can use while filing ITR

You can legally reduce your taxable income with these common tax-saving deductions

 

 

Let’s be honest, if given a choice, none of us would like to pay tax on the income we earn. But we have to and we should, because income tax return is an important source of revenue for the government. This revenue is used by the government to build the nation.

India is a developing nation and very few Indians earn an income that can be taxed. This is why if you’re one of those who earn a taxable income, you should proudly and honestly pay income tax.
But having said that, there are certain ways by which you can legally reduce your taxable income that you should make use of.

The government allows for certain tax-saving deductions that you can use to lower your taxable income. You can effectively use these deductions to pay less tax. The following table lists common tax-saving deductions and their limits.  → Income Tax Filing ←

All of these deductions are popularly known as Section 80 deductions. A taxpayer can claim the deductions that are applicable to him or her.

Apart from these, there are some other uncommon deductions also available to taxpayers. These include deductions for donations made to political parties, treatment for taxpayer suffering from physical disabilities, donations made towards social causes, etc.

These deductions have to be claimed at the time of efiling of income tax returns. The taxpayer is not required to attach or submit the documents related to the claimed deductions with their tax returns, but the documentation should be kept handy in case it is required by the tax department at a later date...... Read Full Article

I-T lens on half a million people for 'inconsistencies' in cash deposits

This is in addition to 60,000 identified under Operation Clean Money 2.0

 

The income tax (I-T) department has identified 556,000 people for scrutiny over “huge inconsistencies” in the cash deposits made during the demonetisation period. This is the new addition to the tax data that had identified 60,000 people for investigation into claims of excessive cash sales under the IT Department’s Operation Clean Money phase-II.

“The identified people’s bank accounts saw a sudden surge of cash deposits, which raised a red flag in the system,” said a senior tax official.

The cash flow, the official said, was not limited to these people’s bank accounts but was also seen in various investments. → Efiling of Income Tax ←

Sources said the new data had been gathered from specified financial transactions (SFD) like banks, mutual funds, insurance companies. Tax authorities have started issuing notices to the people concerned, seeking explanation on being inconsistent in cash deposits.  → Income Tax ←

Besides, 104,000 of 946,000 respondents have been caught for making partial disclosure of bank account details, after a query was raised by the department in this regard. According to tax officials, these are the people who hold multiple bank accounts but made disclosures about only one or two.
“30-40 per cent of identified people would go in the category of, or can be described as, high-risk persons,” said the official cited above...... Read Full Article

Weed out tax evaders from smaller cities, CBDT tells Income Tax Dept

At present the I-T department has about 6-7 crore registered taxpayers

 

 

With almost 91 lakh new taxpayers brought in the tax net last fiscal, the CBDT has asked the Income Tax Department to increasingly identify those who can pay tax but are not doing so, with a special focus on smaller cities.

Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra has written a letter to his regional I-T heads across the country asking them to "maximise" efforts for the widening of the tax base during the current financial year of 2017-18.

The CBDT frames policy measures for the tax department.

"Huge opportunities for identification of potential taxpayers have been opened up by data mining and data analytics conducted (by the department) in the wake of demonetisation and operation clean money," Chandra said in the letter, which has been accessed by PTI.  → Income Tax Efiling ←

Calling widening of tax base as one of the "most important" policy objectives of the CBDT, he said various steps have been taken to increase the tax base which have shown appreciable results.

"It is quite encouraging to note that almost 91 lakh new taxpayers were added during financial year 2016-17. However, considering the increase in economic activities, both in the organised as well as unorganised sectors, there is a large scope for further widening of the direct tax base in the country," he stated in the .......  Read Full Story

Income Tax News, Income Tax e-Filing, IT Returns filing, Income Tax Return File: Guide, Examples, E-filing Process

Find Complete guide on E-filing of Income Tax Returns online, IT Returns filing also get current & latest News on Income Tax exclusively by Business Standard
→ IT Return ←
→ Income Tax Filing ←
→ Income Tax Return ←
→ Income Tax ←
→ Tax Filing ←
→ Efiling Of Income Tax  ←
→ Income Tax Efiling ←
→ Income Tax Department ←
→ Tax ←
↑ Click on the following link for a complete Guide on income tax in india. Know about Income Tax efiling, Income tax slabs, Budget, calculate income tax, Income tax deductions and TDS

CBI raids 23 locations, books senior IT commissioner, seizes Rs 3.5 cr

CBI searched 23 locations in Kolkata and Ranchi including residential premises of this official

 

 

The CBI on Wednesday conducted raids at 23 locations in West Bengal and Jharkhand in connection with a graft case registered against the Principal Commissioner of Income Tax and others, an official said.

The Central Bureau of Investigation (CBI) took the step against Principal Commissioner Tapas Kumar Dutta, posted in Ranchi, and three of his colleagues -- Arvind Kumar, Additional Commissioner of Income Tax; Ranjeet Kumar Lal, an Income Tax Department Officer and an Income Tax Officer (Tech) identified only as Ganguly -- following allegations of criminal conspiracy.
The four officials of Income Tax department, along with five businessmen and a Chartered Accountant have been booked on charges of criminal conspiracy, criminal misconduct and under the Prevention of Corruption Act. → IT Return ←

During the search operation, the CBI seized Rs 3.5 crore in cash, five kg gold and some incriminating documents from the premises owned by Dutta. Searches were on at several locations.

Dutta and his colleagues were accused of favouring five Kolkata-based businessmen -- identified as Biswanath Agarwal, Santosh Chowdhury, Aakash Agarwal, Vinod Agarwal and Arvind Agarwal -- and their companies in the matter of taxes and for taking illegal gratification.

The CBI raids took place at 18 residential and office premises of the accused in Kolkata and five places in Ranchi in Jharkhand, a CBI official said...... Full Article Source

Confused about income tax return filing? Find answers to all your questions

From Aadhaar-PAN linking to efiling income tax for AY 2017-18, here is everything you need to know

 

 

The income tax return (ITR) filing season has already begun – in fact, you now have less than 20 days for filing ITR using the efiling  of income tax portal – and, despite the government’s continuous efforts to make ITR filing easy, especially through income tax login option on the I-T department portal, you must be facing a lot of headache.

 

This year, there have been several new norms and rules to follow at the time of filing income tax return for 2017-18 assessment year.

 

Last year, government employees had received salary arrears due to the implementation of the 7th Pay Commission’s recommendations. With changed income tax return forms, there is also some confusion about the mechanism to claim relief under Section 89 under the Income Tax Act.

With effect from July 1, 2017, it has become mandatory for taxpayers to link Aadhaar and Permanent Account Number (PAN) for filing ITR. The income tax department is sending texts and e-mails to taxpayers asking them to link their Aadhaar numbers with PAN for uncomplicated income tax efiling.

However, taxpayers are facing various problems in linking Aadhaar and PAN due to several reasons, such as a mismatch in name, date of birth, non-update of phone number in Aadhaar database, etc.

Taxman’s One Solution gathered taxpayers’ various queries, such as how to income tax return. Here is a detailed list of frequently asked questions on income tax return filing, with their answers:  → Income Tax Filing FAQs ←

No GST on free food supplied by temples, mosques, churches, gurudwaras

Clarification was issued by finance ministry

 

Dismissing media reports circulating about taxes levied on free food supplied in anna kshetras run by religious institutions under the Goods and Services Tax (GST), the Finance Ministry clarified that such food will not attract any charges.

In a notification issues on Tuesday, the Ministry said 'prasadam' supplied by religious places like temples, mosques, churches and gurudwaras will not be subject to any Central, State or Integrated GST, as the case may be.

However, some of the ingredients and input services required for making the same would be subject to taxation under the new regime. These include sugar, vegetable edible oils, ghee, butter, service for transportation of these goods and so on.

→ Income Tax Efiling ←  → IT Return ←  → Income Tax Department ←

Most of these inputs or input services have multiple uses. Therefore, under the GST, it is difficult to prescribe a separate tax rate for such items, when supplied for a particular purpose.

Further, the GST being a multi-stage tax, end use-based exemptions or concessions are difficult to administer. Therefore, the GST does not envisage such exemptions. It would, therefore, not be desirable to provide similar exemption for inputs or input services for making prasadam or food for free distribution by religious institutions.

Earlier, on July 2, Union Food and Processing Minister Harsimrat Kaur Badal had urged Finance Minister Arun Jaitley to exempt all purchases made by the Shiromani Gurdwara Parbandhak Committee (SGPC) for 'langar sewa' or service at the community kitchen, under the GST........ Full article Source

Are hotels, eateries overcharging you? How to get the math right

Food served at restaurants attract tax at two rates under GST - 12 per cent and 18 per cent

 

 

As consumers, we are hardly aware of the components included in the restaurant bills. Next time do check your bill to see if the proper GST or goods or services tax rate has been levied. The Central Board of Direct Taxes (CBDT) on Tuesday clarified on rates of GST for restaurants.

Food served at restaurants attract tax at two rates under GST - 12 per cent and 18 per cent (including both CGST (Central GST) and SGST (State GST)) - depending on whether it is an AC restaurant or whether the restaurant has the licence to serve alcohol.
→ Income Tax ←   → Efiling of Income Tax ←

Understanding your restaurant bill - 

If you revisit your food bill from the pre-GST fine-dine experience, you’ll find Service Tax, Service Charge, VAT being added over and above the food value.

 

VAT: This was the tax charged on the food portion of your bill.

Service tax: This was the tax charged on the services provided by the restaurant.

 

Service Charge: This is a charge applied by the restaurants and not by the government. It is not mandatory to pay the service charge, as per government rules.

 

 

However, the rates under GST are vastly different than what you would find before the tax policy change. Let us look at these changed rates below...... Full Article Source

How ClearTax has made tax filing really easy

Some of the ways by which ClearTax has eased the process of e-filing income tax returns for taxpayer

 

 

 

One of the biggest pain-points that taxpayers face at the time of filing income tax returns is struggling through the technical terms and jargon associated with income tax. There are numerous fields in tax-filing forms that need to be filled.

The process gets cumbersome right from the start, when a taxpayer has to choose a tax filing form. More often than not, taxpayers end up choosing the incorrect form. Even filling up the required information becomes difficult, especially for a salaried employee who doesn’t know much about the different sectors and fields.

The only solution for them was to get hold of a CA and provide all the documents required. That wasn’t easy either. All of this lead to taxpayers dreading the income tax filing season. But that was until ClearTax came into the picture. Just by itself, ClearTax solved all of these problems for taxpayers. Here’s how:

• Automatic parsing of Form 16
• E-filing without Form 16
• Support for multiple Form 16s
• Pull data from Form 26AS
• E-filing for non-salaried taxpayers

These are some of the ways by which ClearTax has eased the process of e-filing income tax returns for taxpayers. Apart from that, ClearTax also offers a mutual fund investment platform to help taxpayers save tax and build wealth.......Full Article Source

Tax dept gets busy on 15% hike in mop-up target

The proposed target comes sans any amnesty scheme

 

 

Income Tax efiling - Ahead of an uphill collection target for the current financial year (FY18), the income tax department has prepared a multi-pronged strategy to achieve 15.7 per cent growth, without any amnesty schemes that provided a buffer last year. There’s also been a reduction in the rate for the lowest income slab.

The strategy includes litigation management, disposal of high-value cases, scaling up of searches and seizures, strengthening of systems and investigation teams, and tying with global data mining companies for information gathering.

The income tax return department has a collection target of Rs 9.8 lakh crore for 2017-18, up 15.7 per cent, compared with growth of 14.3 per cent in 2016-17. The rate on annual income between Rs 2.5 lakh and Rs 5 lakh has been cut to five per cent from the earlier 10 per cent.

“The compliance rate has shown an improvement after demonetisation, which will also facilitate higher collection. Litigation management, arrears recovery, information gathering and enforcement action will be the top areas of focus,” said a senior official.

The commissioner (appeals) has been asked to expedite clearance of high value tax filing cases of Rs 50 crore and above. “We want such cases to be decided early. If the sum is to be freed, take a decision early. If it needs to be recovered, that too we should know early, to devise a strategy,” said the........... read more

CBDT devises special plan to dispose of 300,000 pending cases

The pending cases choked Rs 6.11 lakh crore revenue to tax department

 

 

Faced with "mounting" litigation that has "choked" the revenue stream, the CBDT has formulated an action plan to dispose of about 3 lakh cases, bearing Rs 6.11 lakh crore revenue, that are pending before its appeals commissioners across the country.

The Central Board of Direct Taxes (CBDT), that frames policies for the Income Tax Department, has now directed the I-T appeals commissioners to dispose of 500 cases per annum and priortise them where either the demand is less than Rs 10 lakh or over Rs 50 crore.

The Board has expressed serious concerns over the "rising" cases of litigation in the department, which it said has "assumed grave proportions".

It added that "mounting litigation" has choked the revenue stream and is leading to wastage of scarce resources.

According to official data, as of April 1, a total of 2,90,227 cases are pending before the department's first appellate authority--Commissioner of Income Tax filing(CIT)(appeals) --involving an amount of Rs 6.11 lakh crore.

Out of this, demands amounting to Rs 1.18 lakh crore have been stayed by the Income Tax Appellate Tribunal (ITAT) or other courts.

The IT Return Department has a multi-tier appellate mechanism for a taxpayer, who has been issued a tax demand notice, can go in for appeal........read more

Aaykar Setu: Now solve I-T issues, pay taxes, apply for PAN, via CBDT app

CBDT app will also help people link their Aadhaar with Permanent Account Number (PAN)

 

Paying income tax, applying for PAN and seeking redressal of grievances have become easier as the tax department today launched an app allowing taxpayers perform basic functions through their smartphone.

The mobile app will also help people link their 12- digit biometric identifier Aadhaar with Permanent Account Number (PAN) card as well as track the TDS deduction details.

The mobile app 'Aaykar Setu', launched by Finance Minister Arun Jaitley, literally means bridge for taxpayers and will be available in Android phones.

"This is a very important step forward by the CBDT and the principle reason being technology as a very powerful tool becomes an enabler. (With the app) most of the work the assessee can discharge without any external help sitting at home," the minister said.

This is the first mobile app by the CBDT and can be downloaded by giving missed calls to 7306525252.

The app will have a live chat facility named 'Chatbot' from 10 am to 6 pm which will provide solution to queries of taxpayers relating to PAN, TAN, TDS, efiling of income tax, refund status and tax payments.

Besides, people can also have a live chat with tax experts and provides address of nearby tax return preparer.

It provides ease of use of all the services related to tax payment including tax payment, tax calculation. Also if a taxpayer has a problem, this app will help in lodging his grievance in the e-Nivaran module of the CBDT.

The taxpayers will also be able to receive regular updates regarding important tax dates, forms and notifications on mobile numbers registered with the ITD......read more

Auditors' to disclose property related transactions above Rs 20,000 to I-T

The move will increase transparency in financial dealings and help check tax evasion

 

 

Efiling of Income tax - Auditors will now have to disclose details of transactions exceeding Rs 20,000 in connection with immovable property in reports, which they file with the Income Tax (I-T) authorities on behalf of their clients.

Under the Income Tax Act, professionals earning gross receipts of more than Rs 50 lakh and companies with a turnover of Rs one crore and above are required to get their accounts audited. The turnover limit for companies has been increased to Rs two crore from Assessment year 2018-19.

So far, auditors in their report had to mention details of loans, and repayment exceeding Rs 20,000 in the tax audit report filed along with Income Tax returns. Henceforth, all transactions exceeding Rs 20,000 relating to immovable property will have to be mentioned in a specified format in the report.
The move will increase transparency in financial dealings and help check tax evasion.

As per the notification by the IT Return department, auditors will have to furnish details of transactions regarding "each specified sum" exceeding Rs 20,000 from financial year 2016- 17. These would include money paid or received with regard to immovable property.

The auditor report will also have to specify details of the mode of payments whether account payee or bearer cheque, or through electronic system.

Through the notification, the tax department has revised the form 3CD for tax audit report under section 44AB of Income Tax Act.......read more

Demonetisation effect: Direct tax mop-up grows 15% to Rs 1.42 lakh cr in Q1

Overall advance taxes, both personal and corporate, grew by 11.9% to Rs 58,783 crore

 

 

Advance tax paid by individuals recorded 40 per cent growth in the first quarter (April-June) of the current financial year.

This could be an impact of the demonetisation of high-value currencies, with more non-corporate entities recording higher incomes.

Overall income tax direct collection after refunds expanded by 14.8 per cent to Rs 1.42 lakh crore over the corresponding period in 2016.

“The government has benefited from demonetisation, as people have started reporting higher income,” Sushil Chandra, chairman of the Central Board of Direct Taxes, told Business Standard.

Overall advance taxes, both personal and corporate, grew by 11.9 per cent to Rs 58,783 crore. Advance tax is paid within a specified period after the money is earned, rather than waiting for the end of the financial year.

Electronic filing of income tax returns up to June for 2016-17 grew by 18 per cent, suggesting that more people regularised their unaccounted income. “People are aware now that the income tax department is carrying out lots of searches and surveys and that black money will not be tolerated any more,” said Chandra.

“Last year, we cleared a lot of pending refunds for the year-ago period, whereas there are no pending refunds of the past fiscal (year) this time,”........ read source

I-T dept attaches Rs 300-cr alleged benami assets of Bhujbal, family

The department alleged assets were allegedly created by them using a maze of about 4 dozen shell cos

 

Alleged benami assets worth Rs 300 crore of Nationalist Congress Party leader Chagan Bhujbal and his family have been attached by the income tax department, which has slapped charges under a newly-enacted criminal law against them.

The Income Tax Department alleged the assets were allegedly created by them using a maze of about four dozen shell companies.

In fresh trouble for the jailed former deputy chief minister of Maharashtra, the IT Return department has issued notices for provisional attachment of assets of Bhujbal, son Pankaj and nephew Sameer Bhujbal, and has identified them as “beneficiaries” of the alleged benami assets. The attachment notice, accessed by PTI, has been issued under Section 24(3) of the Benami Transactions (Prohibition) Act, 2016 (where the taxman thinks the person in possession of the property held benami may alienate the property).

The immovable assets attached under the order include Girna sugar mills in Nashik valued at over Rs 80.97 crore and multi-storeyed residential building Solitaire in Mumbai's Santacruz West area valued at more than Rs 11.30 crore. Tax Filing.

While the mills are in the name of Armstrong Infrastructure Pvt Ltd, the house is in the name of Parvesh Construction Pvt Ltd....

Income tax returns made easy: Step-by-step guide to filling the 1-page form

Only salaried individuals having an income up to Rs 50 lakh can use this form

 

 

The ITR 1 Sahaj form is a one-page simplified income tax return form introduced by the government for salaried individuals to ease the filing process. Only salaried individuals having an income up to Rs 50 lakh can use this form. However, if along with salary income, you have income from more than one house property, capital gains, income from agriculture exceeding Rs 5,000, foreign income/assets, business income or income from winnings from lottery/gambling, then you cannot use this form.
ITR 1 Sahaj consists of the following parts:

Part A – General information
Part B – Gross total income
Part C – Deductions and taxable total income
Part D – Computation of tax payable
Part E – Other information

Schedule IT
Here you need to enter the details of all the payments for advance efiling of income tax and self-assessment tax made by you. You have to mention the BSR code, date of payment, serial number of the challan, and amount of tax paid.

 

Schedule TDS

 

Here you have to quote the complete details of every TDS/TCS transaction deducted on your income tax filing. You should furnish these details in accordance with Form 16 issued by your employer and Form 16A issued by a person in respect of interest income and other sources of income. Also, details of TCS in accordance with Form 27D issued by the tax collector should be furnished.

GST making you anxious? Here is a fact-check on how new tax will impact you

The shelf prices of most commodities are likely to see a change over the next few weeks

 

GST is finally here! It has caught the nation’s fancy, which is somewhat unprecedented for a change in the tax regime.

Income Tax Efiling - However, despite all the efforts made by the government to demystify GST, people continue to be anxious (and confused) about whether GST will be a game-changer for every household in India. My aim is to give a thumbnail sketch of the potential after-effects of GST, and hopefully alleviate this anxiety or confusion a bit!

From consumers’ perspective, pricing will probably be the most important parameter for evaluating the success (or otherwise!) of this mega reform. On this front, GST could turn out to be a mixed bag in the short run. The shelf prices of most commodities (and not necessarily their MRP) is likely to see a change over the next few weeks. Income Tax. And while some products such as soap, toothpaste and hair oil are likely to be cheaper, others, including aerated beverages and some consumer durables, could be more expensive. So if you see the same product with a different MRP tag at a store, don’t doubt the integrity of the retailer or the quality of the product – it’s the GST effect!



Retailers may have a tough time convincing consumers about prices. So some dope on GST on standees or pamphlets should come in handy.

There is also the psychological aspect of this transition for people. As consumers, we are used to seeing only Value added tax (generally between 5% to 15%) on our bills for products we buy. What we don’t see are the other hidden taxes such as Excise Duty and numerous other tax components,

which are embedded in the prices of products. Going forward, when retailers print 18% or 28% (or even 40% GST in some cases) on invoices, it may hurt consumers’ sentiments, and may even adversely affect the perceived value of the products in their minds.

Made an error? File your revised tax returns within stipulated timeline

While tax authorities permit you to revise your tax return in case of an error

 

 

Taxpayers are typically cautious and exercise due care while income tax filing  (I-T) returns. But very often, in the rush to meet deadlines, many of them end up making errors. Some of these include not claiming deductions, not reporting losses, incorrect or total lack of reporting of income.

These mistakes could occur due to lack of knowledge of the provisions of tax laws or due to lack of accurate information at the time of filing the original return. Lawmakers are mindful of such situations and, hence, have made provisions for an opportunity to file a revised income tax return, in case an omission or wrong statement is discovered after filing of the original tax return. However, this task must be completed within a specific time frame.

Timelines are crucial

The first point that the taxpayer must remember is that if he changes the income declared, the tax officer could levy additional tax and interest on it. Any additional tax liability on account of change in income reported or change in tax deducted at source (TDS) would attract penal interest on account of delay in payment of such additional taxes. A tax return can be revised any number of times, as long as there is no wilful concealment of income by the taxpayer and is filed within the prescribed time limit.

The time frame available to an individual taxpayer for filing revised tax returns is crucial. The tax law has been changed in recent times regarding the timeline for filing revised returns for assessment year (AY) 2016-17, which is, financial year 2015-16 (FY) and onwards,  read more...

PAN-Aadhaar linkages is about 7.36 crore, reveals Income Tax department

Recently, IT department made it clear that without Aadhaar, people will not be able to e-file ITRs

 

 

Nearly a quarter of 30 crore PAN holders have linked their unique alphanumeric number with Aadhaar, with over one crore such seedings happening last month.

The jump in the number came after the government made it clear that the PAN-Aadhaar linking was mandatory from July 1 for filing of income tax returns (ITRs) and for obtaining a new Permanent Account Number (PAN).

Out of the about 6.44 crore e-filers registered on the e-filing website of the income tax department, a senior official said, the Aadhaar-PAN linking had been done in about 3.06 crore cases.
"The total number of PAN-Aadhaar linkages is about 7.36 crore, as per latest figures updated till today. Seeding of over a crore Aadhaar numbers in the PAN database has come about in the last one month," the official said.

The income tax department had recently made it clear that taxpayers without the Aadhaar number or its enrollment ID would not be able to Income Tax e-filing from July 1 even as it had said that in "no case" any PAN would be invalidated.

A senior official had clarified that people who were not able to link their Aadhaar with PAN by July 1, would have the option to mention the UIDAI-provided number in the e-ITR and this would be considered a valid linking of the two unique numbers

E-filing of the ITR is mandatory for all individuals except those earning less than Rs 5 lakh per annum and those who are above 80 years of age.

GST regime: New MRP rules released, defaulting manufacturers to be fined

Govt has given 3 months time to reprint revised MRPs under the Packaged Commodities: Paswan tweeted

 

 

The government on Tuesday warned that legal action will be initiated against manufacturers for not printing the revised MRP post rollout of the GST.

Food and Consumer Affairs Minister Ram Vilas Paswan said the government has given three months time till September to reprint the revised maximum retail price (MRP) with the implementation of the landmark Goods and Services Tax (GST).

In a series of tweets, Paswan said that prices of some commodities have fallen, while some have increased with the implementation of GST.

Get all the query on →  Income Tax Efiling  ←

"Fall in prices due to lower GST should be passed on to consumers. ...The government will take legal action against vendors not declaring revised MRP after GST," he said.

The revised rates should be displayed on commodities so that consumers are aware what is the MRP of each item after GST, he added.

"The government has given time till September to reprint the revised MRP under the Packaged Commodities Rule," he said.

GST, launched at midnight of June 30, has subsumed all value added tax (VAT) and Octroi. Read More...

GST in Kashmir: Traders march against new regime with black flags; detained

A special session of the state legislature began today to discuss GST implementation

Police on Tuesday detained several traders after they tried to march towards the Jammu and Kashmir Legislative Assembly to protest the implementation of GST in the state in its present form.

The traders were detained near the gate of the Civil Secretariat complex, which also houses the assembly, after they took out a protest march, police said.

The traders were scheduled to hold a sit-in near the assembly to protest the implementation of the new tax regime in the state in its present form, claiming that it would lead to the erosion of the state's special position and its fiscal autonomy.

Holding black flags and shouting slogans against the GST, several traders reached Jehangir Chowk here to protest.

They tried to march towards the civil secretariat complex, but police swung into action and detained several of them outside the Civil Secretariat,the police said.

A special session of the state legislature began today to discuss the issue of implementation of GST in the state... read more...

Twitter records over 1 mn conversations on GST between June 30 and July 2

Twitter recorded over one million conversations on the goods and services tax between June 30 and July 2 — reflecting the sentiment of the nation on what is being billed as the largest tax reform since Independence.

From #GSTIndia to #GSTForCommonMan, people took to Twitter to express their opinions about the GST.

India ushered in the GST regime on the intervening night of June 30 and July 1. A four-tier tax slab — 5, 12, 18 and 28 per cent — has been decided. People have also been posting pictures on various social media platforms of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/service tax earlier.

"Conversations around the launch of the GST exemplify Twitter as the best place for people to connect with what’s happening in India and around the world and express their opinions,” Twitter India Head of Public Policy and .... read more...

Want us to carry your goods? Show GST number first: Transporters to traders

This is being done to avoid collecting taxes from sender and depositing with the govt

 

 

Transport companies are now insisting traders furnish their GST numbers before accepting goods for transportation anywhere. Traders who have not acquired GST numbers will not be entertained, some transporters told Business Standard.

Ashok Shah, chairman of V- Trans, a large Mumbai-headquartered logistics company and past chairman of Bombay Goods Transport Association confirmed the development. He said, "Octroi being subsumed in GST is a big relief and will save both, time in transit and fuel.

However, for transporting goods, the sender's GST number is required, because given the way tax provisions for transporters have been structured, that becomes necessary".

Under the old tax regime, transport services suffered 5 per cent service tax. That rate has been retained under GST. However in their business, transporters did not have to be registered, collect taxes from the sender on rent or transport charges and deposit them with the government.

This responsibility vested with the sender who paid transport charges. He was responsible for depositing the tax with the service tax department... read more...

Looking to buy a home? Ready-to-move-in apartments to cost more despite GST

Normally, ready properties are priced 20-30 per cent higher than those under construction

 

 

Though ready-to-move-in apartments have been kept out of the Goods and Services Tax's (GST's) ambit, they will continue to cost more than those under construction.

Normally, ready properties are priced 20-30 per cent higher than those under construction.
"Ready properties always cost more. Earlier, too, there was no service tax on ready properties but developers always charged more premium on them," said Sandeep Runwal, director at Runwal group, a Mumbai-based developer.

Amit Bhagat, chief executive officer at ASK Property Investment Advisors, said that since buyers have to pay GST they have to take a call whether they will make their contribution upfront and buy ready apartments or buy an under-construction apartment and make a staggered payment over the next five years.

Under-construction properties carry a tax rate of 12 per cent under GST.

"Ready apartments are not affordable for first-time buyers and they always prefer to go for staggered payments given their rising income levels, age and so on," Bhagat said.

He said that depending on the price of the product, the GST burden will increase on the end-consumer if the property is priced above Rs 6,000 per sq ft... read more...

GST impact: Manufacturing key winner, telecom likely to be worse off

The realisation of a common indirect tax is critical for the semblance of a common Indian market

 

 

The implementation of GST could very well be a step in this direction, in untangling the complicated web of the indirect tax base in India. However, one may add here that, the imposition of the GST (from July) is a minor step in the direction of reducing the incidence of indirect taxes in relation to the overall tax burden.

 

The probable impact of GST?

It may be difficult to realistically depict a quantifiable impact of GST across various sectors unless a specific GST tax rate is known from the government’s end, which analysts earlier estimated to be somewhere around 17% or 18%.

Considering that the discussion across the board on the GST tax rate started with rate discussions of 12% and 18%; the four slab rates of 5%, 12%, 18% and 28%, with identified de-merit goods subject to levy of cess over and above peak rate of 28% was a dampener for the industry, as argued here.

The newly designed multiple rate structure is derived from the fact that current effective indirect taxes (both centre and state) over certain bands are maintained for revenue neutrality and linked to above rate slabs.

The likely winners from the imposition of the GST as a centralised indirect valued added tax, will be from the manufacturing segment, including the automobile manufacturers, the FMCG (Fast Moving Consumer Goods) segment, the retail sector (provided consumer demand picks up) and the cement sector. Income Tax.

One of the key losers could be the telecom sector, with the rise in GST tax rate, unless the VAT and CENVAT simultaneously see a marginal drop in their rates too. The sector is already plagued with serious problems pertaining to data volumes and slow bandwidth penetration across the country.

Tax reforms like the GST is history in the making and the final passing of the GST bill (now in its final stages) will be termed as one of India’s biggest legislative success...  read more...

GST not being charged twice over on credit card payments: Govt busts 7 myths

Please do not recirculate such message without checking it with authority," Adhia said.

 

 

Two days into the GST regime, Revenue Secretary Hasmukh Adhia today took to Twitter to bust "seven myths" that were doing the rounds about the new tax regime.

Adhia, the architect behind the country's largest tax reform, sought to dispel concerns that if a person makes payment of utility bills by credit cards, the he/she will be paying GST twice.

"This is completely untrue. Please do not recirculate such message without checking it with authority," Adhia said.

India ushered in the Goods and Services Tax (GST) regime on the intervening night of June 30 and July 1.

A four-tier tax slab -- 5, 12, 18 and 28 per cent -- has been decided with essential items like salt, unpacked food grains, healthcare services being kept zero rated.



People have been posting in social media pictures of receipts issued in grocery stores or eateries showing tax deductions as GST, instead of VAT/Service tax earlier.

Busting the myth that GST rates are higher than VAT, Adhia said, "It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now." Income Tax

He reiterated that businesses can continue to do business under GST with provisional ID number and need not wait for Goods and Services Taxpayer identification number (GSTIN).

"Provisional ID will be your final GSTIN number. Start business," Adhia said.

He said that businesses need not generate all invoices on computer or internet alone. "Invoices can be generated manually also."..... read more.....