File your income tax returns and keep these Do’s and Don’ts in mind

File on time and keep your documents safe even after filing in case your ITR is scrutinised later on

 

Income Tax News : The deadline for filing your income tax returns for the FY 2016-17 is the 31st July, 2018. It is, therefore, necessary that all taxpayers be aware of the essential dos and don’ts of tax filing so that they can avoid last-minute errors.

Take a look at our list below:

DO’s

1. Organize

It is important to keep your documents ready at the go. For filing, you will need all your old tax receipts, receipts of income and investments, Form 26AS, Form 16 etc. Keep these documents handy when filing for a quicker process; and also remember to keep them safe after you are done filling out the form online. You might need them in case your return is called out for scrutiny later.

2. Check your calculation

Go over your tax documents and do your calculations. Then, go over your math once again to ensure that all your calculations are correct. If you want help, you can always turn to an expert who will help you check your calculations and ensure accuracy. Besides, e-filing is highly recommended since that itself eliminates the chance of error. Those with income in excess of Rs 500,000 or those seeking a refund, must mandatorily e-file.

3. Report all your income

It is important to disclose all income that you earn from all sources, irrespective of whether the income is taxable or exempt. Not disclosing information can lead to legal consequences later on, and it would be wiser to be honest while filing.

4. Verify ITR after e-filing

After you have successfully e-filed your income tax return, you should e-verify your ITR-V via Netbanking, Aadhaar Card or through the EVC process on your mobile number and email. This is important because the IT department will start processing your returns post receiving the verification. Alternatively, you can sign and send the ITR-V to the CPC (via ordinary or speed post only). This has to be done within 120 days from the date of e-filing of tax return.

Read the Don’t List → Income Tax Return

Rs 2.89 lakh cr deposited post note ban by 0.97 mn people under I-T radar

I-T says 14,000 properties of over Rs 1 crore each under scrutiny as owners have not filed returns

 

 

The Income Tax Department (ITD) today said that about 14,000 properties worth over Rs 1 crore each are under its scrutiny as their owners have not filed income returns.

Using data analytics, 13.33 lakh accounts of some 9.72 lakh persons with unusual cash deposits of around Rs 2.89 lakh crore was identified and response sought.

The resource was captured "within a short span of 3-4 weeks," the statement said, without saying how many of them were genuine deposits and how many were unaccounted money. → Income Tax Filing ←

It also did not give details of tax collected on unaccounted money.

The Operation Clean money has since moved into the next phase that "includes enforcement actions in high risk cases, taxpayer engagement through a dedicated website in medium risk cases and close monitoring in low risk cases.

"The exercise has also unearthed large number of persons and clusters having suspect transactions. These include about 14,000 properties of more than Rs 1 crore each where persons have not even filed Income Tax Return.

"The investigations are in progress," the statement said.

The high, medium and low risk cases have been identified through the use of advanced data analytics, including integration of data sources, relationship clustering and fund tracking.... Read Full Article

Govt extends deadline for linking PAN and Aadhaar to December 31

The deadline for linking PAN with Aadhaar previously was August 31

 

 

The government has extended the deadline for linking income tax PAN with Aadhaar by four months to December 31.

The previous deadline was August 31.  → Efiling Of Income Tax ←

Recently, the deadline for Aadhaar linking to avail oneself of social sector schemes had been extended till December-end.

Section 139 AA (2) of the Income Tax Act says every person with PAN as on July 1, 2017, and is eligible to obtain Aadhaar must intimate his Aadhaar number to tax authorities.

→ Tax Filing ←       → Income Tax Efiling ←

However, those categorised as non-resident Indians as per income tax laws, people who are not citizens of India, those above 80 years of age and residents of Assam, Meghalaya and Jammu and Kashmir had been exempt from the requirement.

The deadline for linking PAN with Aadhaar previously was July 31, but was extended to August 31.... Read Full Article

IT recovers Rs 5 cr from Karnataka minister managing Gujarat Congress MLAs

They said only the minister's room in the resort was searched and not of the MLAs from Gujarat

 

 

The Income Tax Department Tuesday conducted searches at multiple properties related to Karnataka Energy minister D K Shivakumar, who was overseeing the stay of 44 Congress MLAs from Gujarat at a resort near Bengaluru, in connection with a tax evasion case.

IT officials said Rs 5 crore cash was recovered from the Delhi residence of the minister, who has been taken to his house in Bengaluru from the resort by the IT team.

Officials privy to the early morning raids said I-T sleuths reached the Eagleton resort near here to question the minister, who was staying at the resort for the night.

The minister, was in charge of the 44 MLAs lodged there, to keep the flock together for preventing the BJP from allegedly "poaching" on them, was at the resort when the search took place, IT officials said.  → Income tax Efiling ←

As the raids on the resort triggered angry reactions from the Congress, the IT department said the resort is not being raided.

They said only the minister's room in the resort was "searched" and not of the MLAs from Gujarat. → Efiling Of Income Tax ←

"The search team has no concern with the MLAs and there has been no contact with MLAs and the search team," the deparment said in a statement.

The department is also investigating charges of alleged role of money power and huge transfer of illegal funds for these polls...... Read article Source

NDTV case: Don't take coercive step, HC to I-T dept on Rs-428 cr demand

No coercive step against NDTV on Rs-428 cr I-T demand: HC



The Delhi High Court on Tuesday directed the Income Tax department not to take any coercive step against media house New Delhi Television (NDTV) in connection with a Rs 428- crore demand raised by the authority.

A bench of justices S Muralidhar and Pratibha M Singh said it was "satisfied" that there was a prima facie case in favour of NDTV.

The court also issued notice to the IT return department and sought its reply on the television channel's plea challenging the demand order of July 26 and a show cause notice of the same day. The notice was issued for failure to pay the amount in time.

Senior advocate Harish Salve, appearing for NDTV, contended that the July 26 order was "without jurisdiction" and based on "piecemeal assessment".

Pulling up the tax authority for issuing the demand order and the notice, the bench noted that the time given for deposit of the amount was 'immediately now' which appeared to be an "over enthusiastic step" and "on the face of it illegal".

"How can you pass penalty order when no time has been given for payment of the amount which was determined on July 26," the court asked the I-T department.....Read  Article Source

Aadhaar-PAN linking deadline extended to August 31

ITR to be processed after Aadhaar-PAN linking, says CBDT

 

 

In a last minute decision, the government today extended the deadline for filing Income Tax Returns (ITRs) and linking Aadhaar with the Permanent Account Number (PAN) of taxpayers.
While ITRs can now be filed by August 5, the Aadhaar-PAN linking can be done till August 31.

The government had made mandatory the linking of the two databases for income tax efiling ITRs from July, 1 this year.
The Central Board of Direct Taxes (CBDT) issued a statement saying the dates have been extended on receipt of complaints from "some taxpayers" that they were unable to log on to the e-filing website of the Income Tax department.

There were also complaints that the assessees were unable to link Aadhaar with PAN because their names were mentioned differently in the database relating to the two documents, the CBDT, the policy making body of the IT Return department, said.

A senior tax filing department official said the decision was taken after a meeting of senior officers of the revenue department and CBDT was held in the finance ministry today to "ease out the panic situation".

"For the purpose of e-filing return, it would be sufficient as of now to quote Aadhaar or acknowledgement number for having applied for Aadhaar in the e-filing website.

"The actual linking of PAN with Aadhaar can be done subsequently, but any time before August 31, 2017," the CBDT said..... Read Full Article

 

Relax! You can file ITR by Aug 5 and link Aadhaar to PAN by Aug 31

Last minute inundation and heavy logging on site of e-filing portal led to the decision

 

 

The Income Tax Department on Monday extended the deadline for efiling of income tax returns by five days till August 5 after complaints were received that assessees were not able to submit returns.

Besides, the department also eased the time frame for linking of PAN with Aadhaar to August 31. In the meantime, the assessees can simply quote Aadhaar number or acknowledgement number of application for Aadhaar.

"In view of the difficulties faced by taxpayers, date for efiling of Income Tax returns for FY 2016-17 has been extended to 5th August, 2017," the department tweeted.

The last minute inundation and heavy logging on the official website of the e-filing portal of the department led to the extension.

Assessees, particularly those have some discrepancies in the name or year of birth or any other data between their Aadhar and PAN cards, were not able to submit returns. Besides, the site was also reported to be crashed in between.

"Some people for whom PAN and Aadhaar data was not matching had problems and could not file income tax return," Neeru Ahuja of Deloitte and Haskins said.

The department said there are some complaints that the taxpayers are not being able to log on to the e-filing website or not being able to link Aadhaar with PAN because of different names reflected in PAN and Aadhaar database....Read Full Article

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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

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

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

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

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

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

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 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...

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...

From July 1, Aadhaar 'must' for filing tax returns, obtaining new PAN

This means every person must quote either Aadhaar number or enrolment ID number for ITR, PAN card

 

 

The Central Board of Direct Taxes (CBDT) on Saturday made it clear that Aadhaar will be a "must" for the filing of Income Tax Returns or for obtaining a new PAN from July 1.

The policy-making body of the Income Tax Filing Department issued a statement stating that the Supreme Court, on Friday, had only given a "partial relief" to those who do not have an Aadhaar or an Aadhaar enrolment ID, and the taxman, hence, will not "cancel" their Permanent Account Number (PAN).

The CBDT issued a three-point "effect of the judgement" of the apex court statement saying.
From July 1, 2017, onwards every person eligible to obtain Aadhaar must quote their Aadhaar number or their Aadhaar enrolment ID number for the filing of Income Tax Returns as well as for applications for PAN.

"Everyone who has been allotted permanent account number as on the 1st day of July 2017, and who has Aadhaar number or is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to income tax authorities for the purpose of linking PAN with Aadhaar," it said.

It explained what will happen in a case of "non-compliance" or where a person does not possess Aadhaar....read more....