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

Govt extends deadline for return filing of audit reports to November 7

CBDT has revised e-filing ITR preparation utilities for filing all types of ITR forms and tax audit report

 

 

The government has decided to extend until November 7 the last date for e-filing of income tax returns for those taxpayers who file audit reports.

A senior official said the Central Board of Direct Taxes (CBDT) took the decision to extend the deadline by a week, considering the "representations made by various stakeholders".

This is the second extension given to them after the first deadline expired on September 30 and it was extended until October 31.

Tax practitioner bodies had sought an extension from the government, saying they needed more time to file returns for entities where tax audit report or transfer pricing report or other audit reports are prescribed to be filled.

Among other things, they had cited non-availability of clerical staff at chartered accountants' offices due to the GST rollout as a reason.

"This year, professionals are busy in making compliance with GST obligations... the technical glitches in the system have aggravated the problems," a federation had said in a representation to the CBDT, the policy-making body of the Income Tax Department.

Besides, the CBDT has revised e-filing income tax return (ITR) preparation utilities for filing all types of ITR forms, tax audit report, the federation had said.

Click here to Know → Deadline for Filing Return

Cafe Coffee Day raids: Income tax dept detects Rs 650 cr concealed income

Searches concluded with the group's officials admitting to concealed income exceeding Rs 650 crore

 

 

The Income Tax Department raids on Cafe Coffee Day (CCD) retail chain since Thursday found Rs 650 crore concealed income from the documents seized, said an official on Sunday.

"Documents seized from the search operations at 25 places of Cafe Coffee Day and its group companies in Karnataka, Mumbai and Chennai have revealed concealed income of over Rs 650 crore," a senior tax official told IANS here.

The search and seize operations, which began on September 21, concluded on Sunday evening in the offices of the group involved in coffee, tourism, IT Return and other areas.

"The searches concluded with the group's officials admitting to concealed income exceeding Rs 650 crore and the detection of undisclosed income, which is expected to be a much higher figure," said another tax filing official in an e-mail to IANS.

The offices and residence of CCD's founder-owner V G Siddhartha and its other officials in Bengaluru, Chikkamagaluru, Hassan and Mysuru across Karnataka were also searched during the last four days. Siddhartha is the elder son-in-law of former External Affairs Minister S M Krishna, who was also Chief Minister from 1999 to 2004 but earlier this year left the Congress to join the Bharatiya Janata Party.

"There are a number of other issues, including violations of other statutes on which there is no disclosure but relevant evidence has been found. These will be pursued effectively as part of our investigation," added the official in.... Read Full Article

One nation, one tax: Nearly 3 million GST returns filed in August

Almost half came on final day; Network chief says system stood up to huge test and all glitches would be soon resolved

 

 

As many as 2.97 million assessees have filed the summary input-output return under the new goods and services tax (GST) for the month of August (‘GSTR 3B’), much less than the 4.6 million that came for the month of July.

As many as 46 per cent of filers — 1.37 million — submitted Income tax return on Wednesday, the deadline for doing so.

However, the July returns had risen after an extension of five to eight days was given to assessees, depending on whether they wanted to claim input tax credit for pre-GST stocks or not. The GST Network (GSTN), the entity handling the information technology backbone for the new structure, is hopeful that return filing would equal the tally of July.

→ Income Tax Filing ←  → Income Tax efiling ←

Even if the same number of filers are there for the month of August as in July, proportionately it would be much less. This is so because there were only 5.95 million registrations under the GST in July, excluding those opting for the composition scheme. Now, a little over nine million businesses have registered under the GST. Of this, around one million was for the composition scheme; these may file quarterly returns.

Taxes to the tune of Rs 95,000 crore were collected in the maiden month of the roll-out. The central GST (CGST) and state GST (SGST) laws mandate an interest levy at 18 per cent for delayed payment of tax. And, Rs 100 a day will be levied for... Read Full Article

Discrepancies in income? Assets of 7 MPs, 98 MLAs don't add up

These lawmakers include seven Lok Sabha members and 98 members of state assemblies

The Income Tax Department on Monday informed the Supreme Court that there are 105 lawmakers in whose case the verification of declaration of assets have revealed discrepancies in their assets and their known sources of income.

These lawmakers include 7 Lok Sabha members and 98 members of state assemblies and their names came as the outcome of the verification of the list compiled by the Association of Democratic Reforms.

The Income Tax Department made the disclosure to the apex court in its affidavit filed in response to a direction by the bench of Justice J. Chelameswar and Justice S. Abdul Nazeer issued last week in the course of the hearing of a PIL by NGO Lok Prahari seeking to know the sources of the income of the lawmakers contributing to the increase in their assets and also that of their spouse and dependent children. → Tax ←

Besides this, the NGO which has also been joined by the ADR has made several other prayers including declaration of contracts of the candidate, his wife and dependent children with the government and its agencies.

The matter will come up for hearing on..... Read Full Article

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

Shah Rukh Khan gets tax relief on Dubai villa

Tribunal upholds actor's claim that it was gift

 

 

A Dubai villa owned by Shah Rukh Khan was out of the tax ambit, the Income Tax Filing Appellate Tribunal (I-TAT) has ruled.

Called Signature Villa, the property was gifted to him by Nakheel Public Joint Stock Company. The dispute was over whether this was a gift or payment for services Khan had rendered to the company.
Since the villa was gifted in the assessment year (AY) 2008-09, it was tax free, ruled the I-TAT. The I-T Act was amended in October 2009 to include any gift valued more than a certain amount to be taxable.

An I-T officer assessing Khan’s 2008-09 income had revised it to Rs 144.17 crore against Rs 126.31 crore declared by him. The difference of Rs 17.9 crore was the value of the villa.

The assessing officer had contended the value of the property was the “professional receipts” taxable under Section 28 (iv) of the Efiling Of Income tax Act, 1961.

Khan, in a letter on November 11, 2010, denied rendering any professional services to Nakheel PJSC. He said Sultan Ahmed Bin Sulayem, a senior executive of the company and his friend, had gifted him the villa. Khan also said there was no contractual agreement.

The assessing officer had argued that a major source of Khan’s income was endorsing products and performing in stage shows. In 2008-09, the actor had charged Rs 6.5-8 crore for each endorsement. He said the Nakheel PJSC was using the actor’s image to endorse its Palm Project since 2004 on its official website and other media.

Khan had visited the project in 2004 and 2005, and had taken part in an annual day celebration there in 2007, said the ... Read Full Article