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New Updated Article :
TAX PLANNING FOR FY 2022-23 ( AY 2023-24 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation
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INCOME TAX NEWS FROM 2018 TO 2020
FINANCE MINISTRY EXTENDS DEADLINES FOR IT RETURNS AND SELF ASSESSMENT TAX
Dated 31.12.2020 : Ministry of Finance , by way of a press release , has advised extension of various deadlines with regard to submission of IT Returns for FY 2019-20 ( AY 2020-21 )
a. The due date for furnishing of Income Tax Returns for the Assessment Year 2020·21 for the taxpayers (including their partners) who are required to get their accounts audited and companies [for whom the due date, as per the provisions of section 139(1) of the Income-tax
Act,1961, was 31st October, 2020 and which was extended to 30th November, 2020 and then to 31st January, 2021 ) has been further extended to 15th February, 2021 .
b. The due date for furnishing of Income Tax Returns for the Assessment Year 2020·21 for the taxpayers who are required to furnish report in respect of international specified domestic transactions [for whom the due date, as per the provisions of section 139(1) of the Income·
tax Act,1961 , was 30th November, 2020 and which was extended to 31st January, 2021J has been further extended to 15th February, 2021 .
c. The due date for furnishing of Income Tax Returns for the Assessment Year 2020·21 for the other taxpayers [for whom the due date, as per the provisions of section 139(1) of the Income· tax Act, 1961 , was 31st July, 2020 and which was extended to 30th November, 2020 and then to 31st December, 2020) has been further extended to 10th January, 2021 .
d. The date for furnish ing of various audit reports under the Act including tax audit report and report in respect of international specified domestic transaction for the Assessment Year 2020·21 has been further extended to 15th January, 2021 .
e, The last date for making a declaration under Vivad Se Vishwas Scheme has been extended to 31 st January, 2021 from 31 st December, 2020
.
f. The date for passing of orders under Vivad Se Vishwas Scheme, which are required to be passed by 30th January, 2021 has been extended to 31 st January, 2021 .
g. The date for passing of order or issuance of notice by the authorities under the Direct Taxes & Benami Acts which are required to be passed / issued / made by 30th March, 2021 has also been extended to 31 st March, 2021 .
Further, in order to provide relief for the third time to small and middle class taxpayers in the matter of payment of self·assessment tax, the due date for payment of self·assessment tax date is hereby again being extended. Accordingly, the due date for payment of self·assessment tax for taxpayers whose self·assessment tax liability is up to Rs. 11akh has been extended to 15 th February, 2021 for the audited taxpayers and to 10" January, 2021 for the other taxpayers .
The Government has also extended the due date of furnishing of annual return under section 44 of the Central Goods and Services Tax Act, 2017 for the financial year 2019·20 from 31st , December, 2020 to 28 th February, 2021 .
To go through the Press Release of IT Department dated 30.12.2020 , CLICK HERE
Dated 31.12.2020 : Ministry of Finance , by way of a press release , has advised extension of various deadlines with regard to submission of IT Returns for FY 2019-20 ( AY 2020-21 )
a. The due date for furnishing of Income Tax Returns for the Assessment Year 2020·21 for the taxpayers (including their partners) who are required to get their accounts audited and companies [for whom the due date, as per the provisions of section 139(1) of the Income-tax
Act,1961, was 31st October, 2020 and which was extended to 30th November, 2020 and then to 31st January, 2021 ) has been further extended to 15th February, 2021 .
b. The due date for furnishing of Income Tax Returns for the Assessment Year 2020·21 for the taxpayers who are required to furnish report in respect of international specified domestic transactions [for whom the due date, as per the provisions of section 139(1) of the Income·
tax Act,1961 , was 30th November, 2020 and which was extended to 31st January, 2021J has been further extended to 15th February, 2021 .
c. The due date for furnishing of Income Tax Returns for the Assessment Year 2020·21 for the other taxpayers [for whom the due date, as per the provisions of section 139(1) of the Income· tax Act, 1961 , was 31st July, 2020 and which was extended to 30th November, 2020 and then to 31st December, 2020) has been further extended to 10th January, 2021 .
d. The date for furnish ing of various audit reports under the Act including tax audit report and report in respect of international specified domestic transaction for the Assessment Year 2020·21 has been further extended to 15th January, 2021 .
e, The last date for making a declaration under Vivad Se Vishwas Scheme has been extended to 31 st January, 2021 from 31 st December, 2020
.
f. The date for passing of orders under Vivad Se Vishwas Scheme, which are required to be passed by 30th January, 2021 has been extended to 31 st January, 2021 .
g. The date for passing of order or issuance of notice by the authorities under the Direct Taxes & Benami Acts which are required to be passed / issued / made by 30th March, 2021 has also been extended to 31 st March, 2021 .
Further, in order to provide relief for the third time to small and middle class taxpayers in the matter of payment of self·assessment tax, the due date for payment of self·assessment tax date is hereby again being extended. Accordingly, the due date for payment of self·assessment tax for taxpayers whose self·assessment tax liability is up to Rs. 11akh has been extended to 15 th February, 2021 for the audited taxpayers and to 10" January, 2021 for the other taxpayers .
The Government has also extended the due date of furnishing of annual return under section 44 of the Central Goods and Services Tax Act, 2017 for the financial year 2019·20 from 31st , December, 2020 to 28 th February, 2021 .
To go through the Press Release of IT Department dated 30.12.2020 , CLICK HERE
IT DEPARTMENT PROMISES FAST PROCESSING OF IT RETURNS FOR FY 2019-20
Dated 22.12.2020 : Income Tax Department has now promises quick processing of ITR & ITR4 , if you follow following guidelines :
1. You have verified IT Return submitted by you ( To know how to e-verify your IT Return in a simple way , CLICK HERE
2. You have pre-validated your bank account
3. The figures in 26as matches with the figures in ITR , for both income and TDS paid
4. Earlier years IT Returns should have been filed and processed and no arrears should be pending .
Hence take care to match your income and TDS figures , pre-validate your bank account and e-verify your ITR to get fast refunds if any .
IT Department also informs that more than 3.75 crore IT Payers have already submitted IT Returns for FY 2019-20 . Out of which ITR1 received crossed 2 crores and ITR 4 for more than 75 lakhs . If you are yet to file IT Return , you may file it now and get quick refund if any .
For complete details on how to submit IT RETURNS FOR FY 2019-20 ( AY 2020-21 ) , CLICK HERE
For step by step guide to fill ITR1 for fy 2019-20 , CLICK HERE
For complete guide to submit ITR2 for fy 2019- 20 ,CLICK HERE
INCOME TAX RETURNS FOR FY 2019-20 : INSTRUCTION SHEETS REVISED
Dated 24.11.2020 : Income Tax Department has now revised instruction sheets to fill income tax Return forms in order to help IT payers to give better clarity on filling various columns in the forms . revised instruction forms are now available for ITR2 , ITR3, ITR5 , ITR6 & ITR7 . You may go through the revised instruction forms by clicking on the ITR Number .
However the actual Income Tax returns remain to be same without change and hence persons who have already filed the return need not worry about the changes in instruction forms .
For complete details on how to submit IT RETURNS FOR FY 2019-20 ( AY 2020-21 ) , CLICK HERE
For step by step guide to fill ITR1 for fy 2019-20 , CLICK HERE
For complete guide to submit ITR2 for fy 2019- 20 ,CLICK HERE
Dated 24.11.2020 : Income Tax Department has now revised instruction sheets to fill income tax Return forms in order to help IT payers to give better clarity on filling various columns in the forms . revised instruction forms are now available for ITR2 , ITR3, ITR5 , ITR6 & ITR7 . You may go through the revised instruction forms by clicking on the ITR Number .
However the actual Income Tax returns remain to be same without change and hence persons who have already filed the return need not worry about the changes in instruction forms .
For complete details on how to submit IT RETURNS FOR FY 2019-20 ( AY 2020-21 ) , CLICK HERE
For step by step guide to fill ITR1 for fy 2019-20 , CLICK HERE
For complete guide to submit ITR2 for fy 2019- 20 ,CLICK HERE
IT EXEMPTION FOR LTC CASH EXTENDED TO NON-CENTRAL GOVERNMENT EMPLOYEES
Dated 30.10.2020 : Earlier in the month Government of India had announced a scheme called Leave Travel Concession (LTC) Cash Voucher Scheme . Central Government employees were allowed payment of cash allowance equivalent to LTC fare and Fare payment was made tax free . To avail the tax free scheme , a Central Government employee, opting for this scheme, would be required to buy goods / services worth 3 times the fare and 1 time the leave encashment before 31st March 2021. The scheme also required that money must be spent on goods attracting GST of 12% or more from a GST registered vendor through digital mode. The employee was required to produce GST invoice to avail the benefit.
Now in order to provide the benefits to other employees (i.e. non-Central Government employees) who are not covered by the above mentioned scheme , Government has decided to provide similar income-tax exemption for the payment of cash equivalent of LTC fare to the non-Central Government employees also. Accordingly, the payment of cash allowance, subject to maximum of Rs 36,000 per person as Deemed LTC fare per person (Round Trip) to non-Central Government employees, shall be allowed income-tax exemption subject to fulfilment of conditions specified . Accordingly , The income-tax exemption to receipt of deemed LTC fare by a non-Central Government employee (‘the employee’) will also be allowed subject to fulfilment of the following conditions:-
(a) The employee exercises an option for the deemed LTC fare in lieu of the applicable LTC in the Block year 2018-21.
(b) The employee spends a sum equals to three times of the value of the deemed LTC fare on purchase of goods / services which carry a GST rate of not less than 12% from GST registered vendors / service providers (‘the specified expenditure’) through digital mode during the period from the 12th of October, 2020 to 31st of March, 2021 (‘specified period’) and obtains a voucher indicating the GST number and the amount of GST paid.
(c) An employee who spends less than three times of the deemed LTC fare on specified expenditure during the specified period shall not be entitled to receive full amount of deemed LTC fare and the related income-tax exemption and the amount of both shall be reduced proportionately .
The DDOs shall allow income-tax exemption subject to fulfilment of the above conditions after obtaining copies of invoices of specified expenditure incurred during the specified period. Further, as this exemption is in lieu of the exemption provided for LTC fare, an employee who has exercised an option to pay income tax under concessional tax regime under section 115BAC of the Income-tax Act, 1961 shall not be entitled for this exemption.
However we found that the notification is not clear about the inclusion of PRIVATE SECTOR / PUBLIC SECTOR EMPLOYEES and if the employee has LTC block other than 2018 -21 . Hopefully IT Department will come with clarifications . Any how an employee has to spend three times LTC cash he receives to avail the tax exemption .
To read the press release of the ministry , CLICK HERE
Dated 30.10.2020 : Earlier in the month Government of India had announced a scheme called Leave Travel Concession (LTC) Cash Voucher Scheme . Central Government employees were allowed payment of cash allowance equivalent to LTC fare and Fare payment was made tax free . To avail the tax free scheme , a Central Government employee, opting for this scheme, would be required to buy goods / services worth 3 times the fare and 1 time the leave encashment before 31st March 2021. The scheme also required that money must be spent on goods attracting GST of 12% or more from a GST registered vendor through digital mode. The employee was required to produce GST invoice to avail the benefit.
Now in order to provide the benefits to other employees (i.e. non-Central Government employees) who are not covered by the above mentioned scheme , Government has decided to provide similar income-tax exemption for the payment of cash equivalent of LTC fare to the non-Central Government employees also. Accordingly, the payment of cash allowance, subject to maximum of Rs 36,000 per person as Deemed LTC fare per person (Round Trip) to non-Central Government employees, shall be allowed income-tax exemption subject to fulfilment of conditions specified . Accordingly , The income-tax exemption to receipt of deemed LTC fare by a non-Central Government employee (‘the employee’) will also be allowed subject to fulfilment of the following conditions:-
(a) The employee exercises an option for the deemed LTC fare in lieu of the applicable LTC in the Block year 2018-21.
(b) The employee spends a sum equals to three times of the value of the deemed LTC fare on purchase of goods / services which carry a GST rate of not less than 12% from GST registered vendors / service providers (‘the specified expenditure’) through digital mode during the period from the 12th of October, 2020 to 31st of March, 2021 (‘specified period’) and obtains a voucher indicating the GST number and the amount of GST paid.
(c) An employee who spends less than three times of the deemed LTC fare on specified expenditure during the specified period shall not be entitled to receive full amount of deemed LTC fare and the related income-tax exemption and the amount of both shall be reduced proportionately .
The DDOs shall allow income-tax exemption subject to fulfilment of the above conditions after obtaining copies of invoices of specified expenditure incurred during the specified period. Further, as this exemption is in lieu of the exemption provided for LTC fare, an employee who has exercised an option to pay income tax under concessional tax regime under section 115BAC of the Income-tax Act, 1961 shall not be entitled for this exemption.
However we found that the notification is not clear about the inclusion of PRIVATE SECTOR / PUBLIC SECTOR EMPLOYEES and if the employee has LTC block other than 2018 -21 . Hopefully IT Department will come with clarifications . Any how an employee has to spend three times LTC cash he receives to avail the tax exemption .
To read the press release of the ministry , CLICK HERE
Payment Date Extended for Vivad se Vishwas Scheme
29.10.2020: In order to provide further relief to the taxpayers desirous of settling disputes under Vivad se Vishwas Scheme, the Government further extended the date for making payment without additional amount from 31st December 2020 to 31st March 2021. The last date for making declaration under the Scheme has also been notified as 31st December 2020. As per the notification issued on 27th Oct , , the declaration under the Vivad se Vishwas Scheme shall be required to be furnished latest by 31st December 2020, however, only in respect of said declarations made by 31st December 2020 the payment without additional amount can now be made up to 31st March 2021.
To read the notification , CLICK HERE
29.10.2020: In order to provide further relief to the taxpayers desirous of settling disputes under Vivad se Vishwas Scheme, the Government further extended the date for making payment without additional amount from 31st December 2020 to 31st March 2021. The last date for making declaration under the Scheme has also been notified as 31st December 2020. As per the notification issued on 27th Oct , , the declaration under the Vivad se Vishwas Scheme shall be required to be furnished latest by 31st December 2020, however, only in respect of said declarations made by 31st December 2020 the payment without additional amount can now be made up to 31st March 2021.
To read the notification , CLICK HERE
FINANCE MINISTRY EXTENDS DEADLINES FOR IT RETURNS AND SELF ASSESSMENT TAX
Dated 24.10.2020 : Ministry of Finance , by way of a notification , notified extension of various deadlines with regard to following transactions relating to the Income Tax .:
1. INCOME TAX RETURNS FOR FY 2019-20 :
Earlier Due date of all income-tax return s , which did not require audit for FY 2019-20 were be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and now it is further extended up to 31st, December ,2020 . If Returns require audit , the deadline is now extended up to 31st , January 2021 . Further returns which contain international transactions and special transactions can also be submitted till 31.01.2021 . The due date for furnishing audit reports for such international transactions is also extended to 31st , December 2020 .
2. SELF ASSESSMENT TAX
For the persons for whom self assessed tax liability is less than Rs 1 lakh , self assessment tax now can be paid up to 30.11.2020 .
To read original notification , CLICK HERE
If you have any doubt on your eligibility in any particular item , you may seek professional help from your chartere
Dated 24.10.2020 : Ministry of Finance , by way of a notification , notified extension of various deadlines with regard to following transactions relating to the Income Tax .:
1. INCOME TAX RETURNS FOR FY 2019-20 :
Earlier Due date of all income-tax return s , which did not require audit for FY 2019-20 were be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and now it is further extended up to 31st, December ,2020 . If Returns require audit , the deadline is now extended up to 31st , January 2021 . Further returns which contain international transactions and special transactions can also be submitted till 31.01.2021 . The due date for furnishing audit reports for such international transactions is also extended to 31st , December 2020 .
2. SELF ASSESSMENT TAX
For the persons for whom self assessed tax liability is less than Rs 1 lakh , self assessment tax now can be paid up to 30.11.2020 .
To read original notification , CLICK HERE
If you have any doubt on your eligibility in any particular item , you may seek professional help from your chartere
FACELESS APPEALS LAUNCHED
26.09.2020 : The Income Tax Department yesterday launched Faceless Income Tax Appeals. Under Faceless Appeals, all Income Tax appeals will be finalised in a faceless manner under the faceless ecosystem with the exception of appeals relating to serious frauds, major tax evasion, sensitive & search matters, International tax and Black Money Act. Necessary Gazette notification has also been issued .
( See Taxation Bill below ) .
Under the Faceless Appeals, from now on, in income tax appeals, everything from e-allocation of appeal, e-communication of notice/ questionnaire, e-verification/e-enquiry to e-hearing and finally e-communication of the appellate order, the entire process of appeals will be online, dispensing with the need for your visit to the Department. There will be no physical interface between you or your counsels and the Income Tax Department. You can make submissions from the comfort of your home.
The Faceless Appeals system will include allocation of cases through Data Analytics and AI under the dynamic jurisdiction with central issuance of notices which would be having Document Identification Number (DIN). As part of dynamic jurisdiction, the draft appellate order will be prepared in one city and will be reviewed in some other city. The Faceless Appeal is expected to make decisions on income tax appeals more objective .
To Read Press release dated 25.09.2020 , CLICK HERE
( See Taxation Bill below ) .
Under the Faceless Appeals, from now on, in income tax appeals, everything from e-allocation of appeal, e-communication of notice/ questionnaire, e-verification/e-enquiry to e-hearing and finally e-communication of the appellate order, the entire process of appeals will be online, dispensing with the need for your visit to the Department. There will be no physical interface between you or your counsels and the Income Tax Department. You can make submissions from the comfort of your home.
The Faceless Appeals system will include allocation of cases through Data Analytics and AI under the dynamic jurisdiction with central issuance of notices which would be having Document Identification Number (DIN). As part of dynamic jurisdiction, the draft appellate order will be prepared in one city and will be reviewed in some other city. The Faceless Appeal is expected to make decisions on income tax appeals more objective .
To Read Press release dated 25.09.2020 , CLICK HERE
Taxation Bill 2020
25.09.2020 The Taxation and Other Laws (Relaxations and Amendments of certain Provisions) Bill 2020 (Taxation Bill 2020) was passed by Lok Sabha and Rajya Sabha on 22.09.2020 and it replaces an Ordinance issued in march 2020 .
Key amendments proposed are :
1. Faceless Assessment scheme is introduced which enables carrying out the following functions in a faceless manner, to the extent that it is feasible:
a. Reassessments and revisions
b. Approvals and registration
c. Appeal proceedings before the ITAT
d. Initiation of prosecution
e. Rectification Proceedings
f. Stay and recovery
g. Lower/Nil withholding and TDS proceedings
2. ELECTRONIC COMMUNICATION WILL BE VALID FOR THE FOLLOWING :
a. Placing an authenticated copy thereof in taxpayer’s registered account; or
b. Sending an authenticated copy thereof to the registered email address of taxpayer/ his authorised representative; or
c. Uploading an authenticated copy on taxpayer’s mobile App of the tax department, followed by a real time alert.
3. REDUCTION OF TDS RATES BY 25 % as already announced by the FM earlier
4. RESIDENCY STATUS OF NRI :
Finance Act, 2020 reduced this period of stay in India from 182 days to 120 days for an Indian citizen or a PIO having India sourced income exceeding Rs 15 lakhs . However, it was not clear whether such an individual need to be based outside India and comes on a visit to India to trigger this rule. The Taxation Bill prop clarifies that the new rule will apply to an Indian citizen or PIO who, being outside India, comes on a visit to India.
5. PM CARES FUND : 100% deduction is eligible of the sum contributed to PM CARES Fund under Section 80G.
6. RATIFICATION OF EXTENSION OF DUE DATES : The bill ratifies all the extensions of due dates already announced
To read the gazette announcement , CLICK HERE
Key amendments proposed are :
1. Faceless Assessment scheme is introduced which enables carrying out the following functions in a faceless manner, to the extent that it is feasible:
a. Reassessments and revisions
b. Approvals and registration
c. Appeal proceedings before the ITAT
d. Initiation of prosecution
e. Rectification Proceedings
f. Stay and recovery
g. Lower/Nil withholding and TDS proceedings
2. ELECTRONIC COMMUNICATION WILL BE VALID FOR THE FOLLOWING :
a. Placing an authenticated copy thereof in taxpayer’s registered account; or
b. Sending an authenticated copy thereof to the registered email address of taxpayer/ his authorised representative; or
c. Uploading an authenticated copy on taxpayer’s mobile App of the tax department, followed by a real time alert.
3. REDUCTION OF TDS RATES BY 25 % as already announced by the FM earlier
4. RESIDENCY STATUS OF NRI :
Finance Act, 2020 reduced this period of stay in India from 182 days to 120 days for an Indian citizen or a PIO having India sourced income exceeding Rs 15 lakhs . However, it was not clear whether such an individual need to be based outside India and comes on a visit to India to trigger this rule. The Taxation Bill prop clarifies that the new rule will apply to an Indian citizen or PIO who, being outside India, comes on a visit to India.
5. PM CARES FUND : 100% deduction is eligible of the sum contributed to PM CARES Fund under Section 80G.
6. RATIFICATION OF EXTENSION OF DUE DATES : The bill ratifies all the extensions of due dates already announced
To read the gazette announcement , CLICK HERE
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PM LAUNCHES PLATFORM FOR FACELESS ASSESSMENT OF INCOME TAX SCHEME
Dated 13.08.2020 : Prime Minister today launched the platform for “Transparent Taxation – Honoring the Honest” via video conferencing . The platform is a part of CBDT's initiative of Faceless assessment , faceless appeal and Taxpayers' charter . So far Assessment was being carried out at Central processing Center , Bengaluru . Under the faceless appeal , appeal will be allotted to any officer in the country . The identity of the officer deciding the appeal will be unknown . Further there is no need for the IT payer to go IT office . The appellate decision will be based on a team , instead of of any individual officer . |
SFT WILL CONTAIN ADDITIONAL INFORMATION NOW
Dated 13.08.2020 : Recently Income tax department had expanded the scope of Form 26AS to include certain additional information on Personal financial transactions along with details of other taxes paid, refunds and TDS defaults. The earlier Form 26AS used to give information only regarding tax deducted at source ( TDS ) and tax collected at source relating ( TCS ) to a PAN .
But the Income Tax Department is receiving information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares, cash payment for goods and services, etc. under Section 285BA of Income-tax Act, 1961 from banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc., with regard to individuals having high-value financial transactions since the Financial Year 2015- 2016 onward . These are being included now .
Today Income tax department has proposed to expand the list of such financial transactions to include the following items ( List includes existing transaction list also ) :
1. Payment of education fee / Donation above Rs 1.00 lakh
2. Electricity consumption above Rs 1.00 lakh per annum
3. Domestic business class air travel / foreign travel
4. Payment of hotel bills above Rs 20,000
5. Purchase of Jewelry , painting , marble or white goods avove Rs 1.00 lakh
6. Deposits / credit above Rs 50 lakhs in current accounts
7. Deposits / credit above Rs 25 lakhs in non- current accounts
8. Payment of Property Tax above Rs 20,000
9. Payment of Life Insurance premium above Rs 50,000
10 . Payment of Health Insurance premium above Rs 20,000
11. Share / Mutual Fund transactions , Demat Aaccounts , hiring of lockers
Now, all such information under different SFTs will be shown in the new Form 26AS. IT Department hopes that the additional information would help the honest taxpayers with updated financial transactions while filing their returns, whereas it will desist those taxpayers who
inadvertently conceal financial transactions in their returns. In case the persons having above trasactions are not filing IT Returns , TDS / TCS will be collected at higher rate .
Now the persons depositing Rs 1.00 crore in their bank account , spending Rs 2.00 Lakhs on Foreign travel & Electricity consumption have to compulsorily submit IT Return . Now the persons having bank transactions above Rs 30.00 lakhs , professionals / business men having turn over above Rs 50 lakhs or payment of rent above Rs 40,000 also have to compulsorily submit the IT Returns , as per the proposal .
It Department notification is awaited in this regard
Source : Twitter account of IT Department
Dated 13.08.2020 : Recently Income tax department had expanded the scope of Form 26AS to include certain additional information on Personal financial transactions along with details of other taxes paid, refunds and TDS defaults. The earlier Form 26AS used to give information only regarding tax deducted at source ( TDS ) and tax collected at source relating ( TCS ) to a PAN .
But the Income Tax Department is receiving information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares, cash payment for goods and services, etc. under Section 285BA of Income-tax Act, 1961 from banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc., with regard to individuals having high-value financial transactions since the Financial Year 2015- 2016 onward . These are being included now .
Today Income tax department has proposed to expand the list of such financial transactions to include the following items ( List includes existing transaction list also ) :
1. Payment of education fee / Donation above Rs 1.00 lakh
2. Electricity consumption above Rs 1.00 lakh per annum
3. Domestic business class air travel / foreign travel
4. Payment of hotel bills above Rs 20,000
5. Purchase of Jewelry , painting , marble or white goods avove Rs 1.00 lakh
6. Deposits / credit above Rs 50 lakhs in current accounts
7. Deposits / credit above Rs 25 lakhs in non- current accounts
8. Payment of Property Tax above Rs 20,000
9. Payment of Life Insurance premium above Rs 50,000
10 . Payment of Health Insurance premium above Rs 20,000
11. Share / Mutual Fund transactions , Demat Aaccounts , hiring of lockers
Now, all such information under different SFTs will be shown in the new Form 26AS. IT Department hopes that the additional information would help the honest taxpayers with updated financial transactions while filing their returns, whereas it will desist those taxpayers who
inadvertently conceal financial transactions in their returns. In case the persons having above trasactions are not filing IT Returns , TDS / TCS will be collected at higher rate .
Now the persons depositing Rs 1.00 crore in their bank account , spending Rs 2.00 Lakhs on Foreign travel & Electricity consumption have to compulsorily submit IT Return . Now the persons having bank transactions above Rs 30.00 lakhs , professionals / business men having turn over above Rs 50 lakhs or payment of rent above Rs 40,000 also have to compulsorily submit the IT Returns , as per the proposal .
It Department notification is awaited in this regard
Source : Twitter account of IT Department
TO ESTIMATE YOUR CURRENT YEAR TAX LIABILITY AND REBATES YOU CAN UTILISE VISIT TAX PLANNING
TO KNOW ABOUT TAX ON RETIREMENT BENEFITS , CLICK HERE
TO KNOW ALL ABOUT IT RETURNS , CLICK HERE
HOW TO LINK AADHAAR TO PAN ? CLICK HERE
PLAN YOUR FINANCE PRUDENTLY . For Financial Planning , CLICK HERE
TO GET INSTANT PAN NUMBER WITH NO CHARGES , CLICK HERE
TO KNOW ABOUT TAX ON RETIREMENT BENEFITS , CLICK HERE
TO KNOW ALL ABOUT IT RETURNS , CLICK HERE
HOW TO LINK AADHAAR TO PAN ? CLICK HERE
PLAN YOUR FINANCE PRUDENTLY . For Financial Planning , CLICK HERE
TO GET INSTANT PAN NUMBER WITH NO CHARGES , CLICK HERE
INCOME TAX PAYERS ' CHARTER RELEASED ON 13.08.2020
FINANCE MINISTRY EXTENDS DEADLINE FOR SUBMISSION OF IT RETURN FOR FY 2018-19
Dated 30.07.2020 : Ministry of Finance , by way of an ordinance , notified extension of deadline for submission of INCOME TAX RETURN FOR FY 2018-19 . up to 30.09.2020 now .
If you have failed to submit your income tax return for FY 2018-19 , you can submit belated return / revised return is extended up to 30.09 .2020 .
For income tax return forms and guidelines , CLICK HERE
Dated 30.07.2020 : Ministry of Finance , by way of an ordinance , notified extension of deadline for submission of INCOME TAX RETURN FOR FY 2018-19 . up to 30.09.2020 now .
If you have failed to submit your income tax return for FY 2018-19 , you can submit belated return / revised return is extended up to 30.09 .2020 .
For income tax return forms and guidelines , CLICK HERE
LAST 3 DAYS TO UTILIZE EXTENDED DEADLINE
Dated 29.07.2020 : Ministry of Finance , by way of an ordinance had extended deadline to 31st, July 2020 for the following :
1. BUYING TAX SAVING INSTRUMENTS :
Normally Depositing money in Public Provident Funds ( PPF ) , Sukanya Samriddhi Account ( SSA ) , insurance premium and purchasing tax saving instruments like National savings certificates should be done in the same year in which Rebates are claimed . However due to national lockdown , time to avail rebates under section 80C , 80D , 80G etc were given by the finance ministry up to 30.06.2020 earlier and further extended up to 31.07.2020 Hence you have time of another 3 days up to l 31.07.2020 to deposit / purchase such instruments and claim tax rebate for FY 2019-20 . For details , CLICK HERE
2. INCOME TAX RETURN FOR FY 2018-19 .
If you have failed to submit your income tax return for FY 2018-19 , you can submit belated return / revised return now up to 31.07 .2020 . For income tax return forms and guidelines , CLICK HERE
Dated 29.07.2020 : Ministry of Finance , by way of an ordinance had extended deadline to 31st, July 2020 for the following :
1. BUYING TAX SAVING INSTRUMENTS :
Normally Depositing money in Public Provident Funds ( PPF ) , Sukanya Samriddhi Account ( SSA ) , insurance premium and purchasing tax saving instruments like National savings certificates should be done in the same year in which Rebates are claimed . However due to national lockdown , time to avail rebates under section 80C , 80D , 80G etc were given by the finance ministry up to 30.06.2020 earlier and further extended up to 31.07.2020 Hence you have time of another 3 days up to l 31.07.2020 to deposit / purchase such instruments and claim tax rebate for FY 2019-20 . For details , CLICK HERE
2. INCOME TAX RETURN FOR FY 2018-19 .
If you have failed to submit your income tax return for FY 2018-19 , you can submit belated return / revised return now up to 31.07 .2020 . For income tax return forms and guidelines , CLICK HERE
FORM 26AS REVISED , TO CONTAIN PERSONAL FINANCIAL TRANSACTIONS
Dated 20.07.2020 : The earlier Form 26AS used to give information regarding tax deducted at source ( TDS ) and tax collected at source relating ( TCS ) to a PAN, besides certain additional information including details of other taxes paid, refunds and TDS defaults. But now, it will have SFTs ( Statement of Financial Transactions ) to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR. Information received by the Income Tax Department from the filers of specified SFTs is now being shown in Part E of Form 26AS
But the Income Tax Department is receiving information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares, cash payment for goods and services, etc. under Section 285BA of Income-tax Act, 1961 from banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc., with regard to individuals having high-value financial transactions since the Financial Year 2015- 2016 onwards . The information so collected is not being shown in the form 26AS so far .
Now, all such information under different SFTs will be shown in the new Form 26AS. IT Department hopes that the additional information would help the honest taxpayers with updated financial transactions while filing their returns, whereas it will desist those taxpayers who
inadvertently conceal financial transactions in their returns. The new Form 26AS would also have information of transactions which used to be received up to Financial Year 2015-16 in the Annual Information Returns (AIR).
To read Press release of it Department dated 18.07.2020 , CLICK HERE
Dated 20.07.2020 : The earlier Form 26AS used to give information regarding tax deducted at source ( TDS ) and tax collected at source relating ( TCS ) to a PAN, besides certain additional information including details of other taxes paid, refunds and TDS defaults. But now, it will have SFTs ( Statement of Financial Transactions ) to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR. Information received by the Income Tax Department from the filers of specified SFTs is now being shown in Part E of Form 26AS
But the Income Tax Department is receiving information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares, cash payment for goods and services, etc. under Section 285BA of Income-tax Act, 1961 from banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc., with regard to individuals having high-value financial transactions since the Financial Year 2015- 2016 onwards . The information so collected is not being shown in the form 26AS so far .
Now, all such information under different SFTs will be shown in the new Form 26AS. IT Department hopes that the additional information would help the honest taxpayers with updated financial transactions while filing their returns, whereas it will desist those taxpayers who
inadvertently conceal financial transactions in their returns. The new Form 26AS would also have information of transactions which used to be received up to Financial Year 2015-16 in the Annual Information Returns (AIR).
To read Press release of it Department dated 18.07.2020 , CLICK HERE
SELF ASSESSMENT TAX FOR FY 2019-20
Dated 04.07.2020 : As per gazette notification and press release of income tax department dated 24.06.2020 , the due date for paying self assessment tax for the Financial year 2019-20 is extended up to 30.11.2020 , provided your self - assessment tax is less than Rs 1.00 lakh . If it exceeds the limit , the due date for paying it remains 31.07.2020 .
You can calculate your self assessment tax liability in the following way :
SELF - ASSESSMENT TAX CALCULATION FOR FY 2019-20
1. Go to Income Tax Department,Govt of India website
http://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
and calculate the estimated income tax liability for the year 2019-20
2. Select Assessment Year 2020-21
3. Select your gender or senior citizen status
4. Enter your Residential status
5. Enter your expected salary / pension without ANY DEDUCTION
6. Enter other income like Interest
7.Enter all your eligible deductions like life insurance premium paid / payable , housing loan interest , education loan interest , Medical insurance , interest received from bank under section 80TTA / 80 TTB .
Now you will total Total Taxable income and your Tax liability for the fy 2019-20 .
Then calculate the to the tax amount already paid by you by way of TDS / TCS and advance tax paid by you .
.
The difference is your self assessment tax .
If it is more than Rs 1.00 lakh , you have to pay iit before 31st , July 2020 . You may submit your IT Return before 30th, November 2020 . If it is less than Rs 1.00 lakh , you may pay before 30th November at the time of submission of your returns .
To read the Press Release dated 24.06.2020 , CLICK HERE
Dated 04.07.2020 : As per gazette notification and press release of income tax department dated 24.06.2020 , the due date for paying self assessment tax for the Financial year 2019-20 is extended up to 30.11.2020 , provided your self - assessment tax is less than Rs 1.00 lakh . If it exceeds the limit , the due date for paying it remains 31.07.2020 .
You can calculate your self assessment tax liability in the following way :
SELF - ASSESSMENT TAX CALCULATION FOR FY 2019-20
1. Go to Income Tax Department,Govt of India website
http://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
and calculate the estimated income tax liability for the year 2019-20
2. Select Assessment Year 2020-21
3. Select your gender or senior citizen status
4. Enter your Residential status
5. Enter your expected salary / pension without ANY DEDUCTION
6. Enter other income like Interest
7.Enter all your eligible deductions like life insurance premium paid / payable , housing loan interest , education loan interest , Medical insurance , interest received from bank under section 80TTA / 80 TTB .
Now you will total Total Taxable income and your Tax liability for the fy 2019-20 .
Then calculate the to the tax amount already paid by you by way of TDS / TCS and advance tax paid by you .
.
The difference is your self assessment tax .
If it is more than Rs 1.00 lakh , you have to pay iit before 31st , July 2020 . You may submit your IT Return before 30th, November 2020 . If it is less than Rs 1.00 lakh , you may pay before 30th November at the time of submission of your returns .
To read the Press Release dated 24.06.2020 , CLICK HERE
UNION BUDGET 2020-21 AND SENIOR CITIZENS
In our new blog article , we have explored what the new IT regime means to senior citizens and what extent senior citizens / retirees / pensioners are gaining / losing from the new regime .As the new regime is optional , one can take studied decisions before opting either of the new or old scheme .
In our new blog article , we have explored what the new IT regime means to senior citizens and what extent senior citizens / retirees / pensioners are gaining / losing from the new regime .As the new regime is optional , one can take studied decisions before opting either of the new or old scheme .
IT'S TIME TO INFORM YOUR OPTIONS ON DEDUCTING TDS FOR FY 2020-21 : OLD TAX REGIME V/S NEW TAX REGIME
WHICH IS BETTER FOR YOU . FIND OUT
Dated 27.06.2020 : As per Finance Ministry clarification , an employee, having income from salary / pension only , can opt for the concessional rate under section 115 BAC of the Act under the new Tax regime , and he / she has to intimate his option to his / her employer. Then the employer has to compute his total income, and make TDS there on in accordance with the provisions of section 115 BAC of the Act . If such intimation is not made by the employee, the employer shall make TDS without considering the provision of section 115 BAC of the Act and TDS will be deducted under old Tax regime .
Once intimation so made will be only for the purposes of TDS during the financial year and cannot be modified during that year. However option at the time of filing of return of income could be different from the intimation made by such employee to the employer for that year.
To read Ministry of Finance circular dated 13.04.2020 in this regard , CLICK HERE
HOW TO CALCULATE WHICH IS BETTER FOR YOU : OLD OR NEW ?
TAX CALCULATION UNDER NEW REGIME
1. Go to Income Tax Department,Govt of India website
http://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
and calculate the estimated income tax liability for the current year
2. Select Assessment Year 2021-22
3. Whether you want to opt for taxation under 115BAC ; Select YES
( Complete the total exercise once with YES )
3. Select your gender or senior citizen status
4. Enter your Residential status
5. Enter your expected salary / pension without ANY DEDUCTION
6. Enter other income like Interest
Now you will total Total Taxable income and your Tax liability under the new regime . Note down the tax liability under the new regime .
TAX CALCULATION UNDER OLD REGIME
7. Now go back to the question : Whether you want to opt for taxation under 115BAC ; Select NO
8. Now Enter your expected salary / pension after Standard Deduction of Rs 50,000 .
9. Enter other income like Interest
10 . Enter all your eligible deductions like life insurance premium paid / payable , housing loan interest , education loan interest , Medical insurance , interest received from bank under section 80TTA / 80 TTB .
( To opt for the old regime , one has to know the various rebates available and it is the same as in FY 2019-20 . To know all rebates / deductions available , CLICK HERE
Now you will get Total Taxable Income under old regime and Tax Payable under old regime .
COMPARE :
Now compare the tax amount between Old regime and New regime and decide whether to opt for old regime or new regime .
You can then intimate your employer your choice . If your employer allows you to file your option on-line , do so . Remember the once you intimate the option to your employer , it cannot be revoked . But you may select a new option while filing IT Returns .
If you opt for old regime , you have to inform your employer the details of the investments made in tax saving instruments also . Otherwise TDS will be more than the TDS under new regime .
CONVEYANCE ALLOWANCE , LFC , TRANSFER ALLOWANCE EXEMPTED UNDER NEW TAX REGIME : AMENDMENT TO IT RULE
Dated 29.06.2020 : Income Tax department has amended rules now and permitted conveyance allowance , travel allowance , LFC / LTC and transfer allowance etc to be to be under exemption category of newly 115BAC as per Gazette notification dated 26.06.2020 .
Accordingly following allowances are also exempted under the new tax regime :
a) any allowance granted to meet the cost of travel on tour or on transfer;
(b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
(c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit
To view Gazette Notification , CLICK HERE
Dated 29.06.2020 : Income Tax department has amended rules now and permitted conveyance allowance , travel allowance , LFC / LTC and transfer allowance etc to be to be under exemption category of newly 115BAC as per Gazette notification dated 26.06.2020 .
Accordingly following allowances are also exempted under the new tax regime :
a) any allowance granted to meet the cost of travel on tour or on transfer;
(b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
(c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit
To view Gazette Notification , CLICK HERE
FINANCE MINISTRY EXTENDS DEADLINE FOR VARIOUS IT TRANSACTIONS
Dated 25.06.2020 : Ministry of Finance , by way of an ordinance , notified extension of various deadlines with regard to transactions relating to the Income Tax .
1. LINKING OF AADHAAR TO PAN :
1. Any action relating to Income Tax to be completed by 31.12.2020 will be extended up to 31.03.2021 . Hence linking of Aadhaar to PAN is also extended up to 31 .03.2021 .
2. INCOME TAX RETURN FOR FY 2018-19 .
If you have failed to submit your income tax return for FY 2018-19 , you can submit belated return / revised return is extended up to 31.07 .2020 .
For income tax return forms and guidelines , CLICK HERE
3 . TDS / TCS CERIFICATES
Statement of TDS / TCS ( Tax Deducted at Source / Tax collected at Source ) for the period up to March 2020 can be submitted now up to 31st , July 2020 and TDS / TCS Certificates to be issued by 15th , August 2020 .
4. INCOME TAX RETURNS FOR FY 2019-20 :
Earlier Due date of all income-tax return for FY 2019-20 were be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020. . Now all returns can be submitted by 30th, November 2020
5. BUYING TAX SAVING INSTRUMENTS :
Normally Depositing money in Public Provident Funds ( PPF ) , Sukanya Samriddhi Account ( SSA ) , insurance premium and purchasing tax saving instruments like
National savings certificates should be done in the same year in which Rebates are claimed . However due to national lockdown , time to avail rebates under section 80C , 80D , 80G etc were given by the finance ministry up to 30.06.2020 earlier . . Now the same has been extended up to 31.07.2020 Hence you have time till 31.07.2020 to deposit / purchase such instruments and claim tax rebate for FY 2019-20 .
6. SELF ASSESSMENT TAX
For self assessed income of Rs 1.00 lakh or less , one can pay self assessment tax up to 30.11.2020 .
7. CAPITAL GAINS UNDER SECTION 54 TO 54 GB OF IT ACT .
Time limit for making investment by way of investment / construction / buying properties under section 54 to 54GB is 30.09.2020 and exemptions under capital gains tax can be claimed .
To read original ordinance / notification . CLICK HERE
If you have any doubt on your eligibility in any particular item , you may seek professional help from your chartered accountant .
Dated 25.06.2020 : Ministry of Finance , by way of an ordinance , notified extension of various deadlines with regard to transactions relating to the Income Tax .
1. LINKING OF AADHAAR TO PAN :
1. Any action relating to Income Tax to be completed by 31.12.2020 will be extended up to 31.03.2021 . Hence linking of Aadhaar to PAN is also extended up to 31 .03.2021 .
2. INCOME TAX RETURN FOR FY 2018-19 .
If you have failed to submit your income tax return for FY 2018-19 , you can submit belated return / revised return is extended up to 31.07 .2020 .
For income tax return forms and guidelines , CLICK HERE
3 . TDS / TCS CERIFICATES
Statement of TDS / TCS ( Tax Deducted at Source / Tax collected at Source ) for the period up to March 2020 can be submitted now up to 31st , July 2020 and TDS / TCS Certificates to be issued by 15th , August 2020 .
4. INCOME TAX RETURNS FOR FY 2019-20 :
Earlier Due date of all income-tax return for FY 2019-20 were be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020. . Now all returns can be submitted by 30th, November 2020
5. BUYING TAX SAVING INSTRUMENTS :
Normally Depositing money in Public Provident Funds ( PPF ) , Sukanya Samriddhi Account ( SSA ) , insurance premium and purchasing tax saving instruments like
National savings certificates should be done in the same year in which Rebates are claimed . However due to national lockdown , time to avail rebates under section 80C , 80D , 80G etc were given by the finance ministry up to 30.06.2020 earlier . . Now the same has been extended up to 31.07.2020 Hence you have time till 31.07.2020 to deposit / purchase such instruments and claim tax rebate for FY 2019-20 .
6. SELF ASSESSMENT TAX
For self assessed income of Rs 1.00 lakh or less , one can pay self assessment tax up to 30.11.2020 .
7. CAPITAL GAINS UNDER SECTION 54 TO 54 GB OF IT ACT .
Time limit for making investment by way of investment / construction / buying properties under section 54 to 54GB is 30.09.2020 and exemptions under capital gains tax can be claimed .
To read original ordinance / notification . CLICK HERE
If you have any doubt on your eligibility in any particular item , you may seek professional help from your chartered accountant .
LAST DATE IS APPROACHING
Dated 05.06.2020 : Due to National lock down , Finance minister had announced extension of last date for submission of various documents relating to the Income tax which were to be submitted in March to 30th , June 2020 . Further grace period was allowed to purchase tax saving instruments . Some of extensions extended are :
1. BUYING TAX SAVING INSTRUMENTS :
Normally Depositing money in Public Provident Funds ( PPF ) , Sukanya Samriddhi Account ( SSA ) , insurance premium and purchasing tax saving instruments like
National savings certificates should be done in the same year in which Rebates are claimed . However due to national lockdown , time to avail rebates under section 80C , 80D , 80G etc are given by the finance ministry up to 30.06.2020 . Hence you have still deposit / purchase such instruments and claim tax rebate for FY 2019-20 .
The Ministry of Finance has made relaxations of rules for depositing in Public Provident Funds ( PPF ) and Sukanya Samriddhi Account ( SSA ) for the Financial Year 2019-20 . PPF and SSA account holders can deposit one time in each account till 30.06.2020 , subject to maximum ceiling prescribed for such accounts . For the details of such schemes , CLICK HERE .
To know more about Tax Rebates available , CLICK HERE
2. VALIDITY OF FORM WAS 15G/ 15H EXTENDED UP TO 30.06.2020
The Finance Ministry through an order had extended the validity of Form 15G / 15H submitted for FY 2019-20 till 30.06.2020 . Banks were asked not to deduct TDS on their interest payments during April to June 2020 ( which is accounted for FY 2020-21 ) , if the customer has already furnished the valid forms during the previous financial year 2019-20 . Hence fresh 15G/ 15H are to be submitted by the eligible persons for the financial year 2020-21 before 30th , June .
To know more about forms 15G / 15H and to download forms CLICK HERE
3. LINKING OF AADHAAR TO PAN NUMBER :
Finance Ministry has the extended time limit for linking Aadhar number to PAN number to 30.06.6020 . If you are yet to link your Aadhar number , you may do it now . To know how to link , CLICK HERE
4. INCOME TAX RETURN FOR FY 2018-19 .
If you have failed to submit your income tax return for FY 2018-19 , you can submit belated return / revised return before 30.06.2020 .
For income tax return forms and guidelines , CLICK HERE
Dated 05.06.2020 : Due to National lock down , Finance minister had announced extension of last date for submission of various documents relating to the Income tax which were to be submitted in March to 30th , June 2020 . Further grace period was allowed to purchase tax saving instruments . Some of extensions extended are :
1. BUYING TAX SAVING INSTRUMENTS :
Normally Depositing money in Public Provident Funds ( PPF ) , Sukanya Samriddhi Account ( SSA ) , insurance premium and purchasing tax saving instruments like
National savings certificates should be done in the same year in which Rebates are claimed . However due to national lockdown , time to avail rebates under section 80C , 80D , 80G etc are given by the finance ministry up to 30.06.2020 . Hence you have still deposit / purchase such instruments and claim tax rebate for FY 2019-20 .
The Ministry of Finance has made relaxations of rules for depositing in Public Provident Funds ( PPF ) and Sukanya Samriddhi Account ( SSA ) for the Financial Year 2019-20 . PPF and SSA account holders can deposit one time in each account till 30.06.2020 , subject to maximum ceiling prescribed for such accounts . For the details of such schemes , CLICK HERE .
To know more about Tax Rebates available , CLICK HERE
2. VALIDITY OF FORM WAS 15G/ 15H EXTENDED UP TO 30.06.2020
The Finance Ministry through an order had extended the validity of Form 15G / 15H submitted for FY 2019-20 till 30.06.2020 . Banks were asked not to deduct TDS on their interest payments during April to June 2020 ( which is accounted for FY 2020-21 ) , if the customer has already furnished the valid forms during the previous financial year 2019-20 . Hence fresh 15G/ 15H are to be submitted by the eligible persons for the financial year 2020-21 before 30th , June .
To know more about forms 15G / 15H and to download forms CLICK HERE
3. LINKING OF AADHAAR TO PAN NUMBER :
Finance Ministry has the extended time limit for linking Aadhar number to PAN number to 30.06.6020 . If you are yet to link your Aadhar number , you may do it now . To know how to link , CLICK HERE
4. INCOME TAX RETURN FOR FY 2018-19 .
If you have failed to submit your income tax return for FY 2018-19 , you can submit belated return / revised return before 30.06.2020 .
For income tax return forms and guidelines , CLICK HERE
FORM 26AS WILL CONTAIN PROPERTY & SHARE TRANSACTION DATA ALSO
Dated 29.05.2020 : Income Tax department yesterday notified , under the newly introduced Section 285BB of Income tax Act , revised Form 26AS which will contain the following data of yours :
(i) Information relating to tax deducted or collected at source
(ii) Information relating to specified financial transaction
(iii) Information relating to payment of taxes
(iv) Information relating to demand and refund
(v) Information relating to pending proceedings
(vi) Information relating to completed proceedings .
The form 26AS will henceforth be called ANNUAL INFORMATION STATEMENT .
Now form 26AS will have additional data apart from Income earned , Tax Deducted at Source ( TDS ) & Tax Collected at Source ( TCS ) . Under the specified financial transactions , property and share transaction data will be incorporated .
It will also have information on payment of taxes , demand and refund of taxes . it will also reflect any proceeding from income tax department is there against you .
The new revised form will be effective from 01.06.2020 .
You may go through Gazette Notification by CLICKING HERE
Dated 29.05.2020 : Income Tax department yesterday notified , under the newly introduced Section 285BB of Income tax Act , revised Form 26AS which will contain the following data of yours :
(i) Information relating to tax deducted or collected at source
(ii) Information relating to specified financial transaction
(iii) Information relating to payment of taxes
(iv) Information relating to demand and refund
(v) Information relating to pending proceedings
(vi) Information relating to completed proceedings .
The form 26AS will henceforth be called ANNUAL INFORMATION STATEMENT .
Now form 26AS will have additional data apart from Income earned , Tax Deducted at Source ( TDS ) & Tax Collected at Source ( TCS ) . Under the specified financial transactions , property and share transaction data will be incorporated .
It will also have information on payment of taxes , demand and refund of taxes . it will also reflect any proceeding from income tax department is there against you .
The new revised form will be effective from 01.06.2020 .
You may go through Gazette Notification by CLICKING HERE
NEW TDS & TCS RATES
Dated 15.05.2020 : Finance Minister Ms Nirmala Sitharaman had announced on 13th May of proposal to reduce the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates.
Now Ministry of finance has come out with the list of New TDS / TCS rates for various transactions which are valid from 14th May, 2020 to 31st March, 2021 .
Now TDS on interest & dividends , will be 7.5 % ( existing 10 %) , To go through the new complete list of rates , CLICK HERE
Now Ministry of finance has come out with the list of New TDS / TCS rates for various transactions which are valid from 14th May, 2020 to 31st March, 2021 .
Now TDS on interest & dividends , will be 7.5 % ( existing 10 %) , To go through the new complete list of rates , CLICK HERE
FM ANNOUNCES REDUCTION OF TDS / TCS AND EXTENSION OF DEADLINE FOR IT RETURN SUBMISSIONS
Dated 13.05.2020 : In view of the present scenario unfolding in India in the wake of spread of pandemic and as a follow up of PM' s announcement of " Atma Nirbhar Bharat Abhiyan " , Finance Minister Ms Nirmala Sitharaman announced various measures to help the revival of Indian economy which is showing recessionary trend . The announcement relating to Income Tax are :
1 . Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020.
2 .Date of assessments getting barred on 30th September,2020 extended to 31st December,2020 and those getting barred on
31st March,2021 will be extended to 30th September,2021.
3. Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020.
4. The rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021.
5. Date of assessments getting time -barred as on March 31, 2021 extended now to 30,.09.2021
For complete details of announcements by FM and video presentation , CLICK HERE
Dated 13.05.2020 : In view of the present scenario unfolding in India in the wake of spread of pandemic and as a follow up of PM' s announcement of " Atma Nirbhar Bharat Abhiyan " , Finance Minister Ms Nirmala Sitharaman announced various measures to help the revival of Indian economy which is showing recessionary trend . The announcement relating to Income Tax are :
1 . Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020.
2 .Date of assessments getting barred on 30th September,2020 extended to 31st December,2020 and those getting barred on
31st March,2021 will be extended to 30th September,2021.
3. Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020.
4. The rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021.
5. Date of assessments getting time -barred as on March 31, 2021 extended now to 30,.09.2021
For complete details of announcements by FM and video presentation , CLICK HERE
FOR ATTENTION NRIs :
EXTRA STAY NOT TAKEN FOR RESIDENTIAL STATUS : IT DEPARTMENT
Dated 13.05.2020 : Non Resident Indians ( NRI ) who had visited India in March 2000 had to prolong their stay in India due to cancellation of international flights and imposition of National Lockdown since 22nd , March 2020 . They would not have been returned to their places of residence till now . Some NRIs would have quarantined on arrival to India during the March month on account of spread of Covid -19 and had to prolong their stay in India
Income Tax department has now clarified that their prolonged stay either due to quarantine or lock- down will not be taken in account for considering residential status of such NRIs .
For IT Department Clarification dated 08.05.2020 , CLICK HERE
EXTRA STAY NOT TAKEN FOR RESIDENTIAL STATUS : IT DEPARTMENT
Dated 13.05.2020 : Non Resident Indians ( NRI ) who had visited India in March 2000 had to prolong their stay in India due to cancellation of international flights and imposition of National Lockdown since 22nd , March 2020 . They would not have been returned to their places of residence till now . Some NRIs would have quarantined on arrival to India during the March month on account of spread of Covid -19 and had to prolong their stay in India
Income Tax department has now clarified that their prolonged stay either due to quarantine or lock- down will not be taken in account for considering residential status of such NRIs .
For IT Department Clarification dated 08.05.2020 , CLICK HERE
IT DEPT CAUTIONS AGAINST FAKE LINK OFFERING IT REFUND
Dated 08.05.2020 : Income Tax department has recently warned public of a SMS message which lures public to clink a link given in the message so that they can get IT Refunds . Actually the message takes you to a phishing website and your personal data will be compromised . IT Department confirms that they have not sent such message .
Our readers may remain cautious before clicking any such message and be wary of fake phishing e-mails / SMS messages .
Dated 08.05.2020 : Income Tax department has recently warned public of a SMS message which lures public to clink a link given in the message so that they can get IT Refunds . Actually the message takes you to a phishing website and your personal data will be compromised . IT Department confirms that they have not sent such message .
Our readers may remain cautious before clicking any such message and be wary of fake phishing e-mails / SMS messages .
IT RETURN FORMS FOR FY 2019-20 ( AY 2020-21 ) TO BE REVISED
Dated 20.04.2020 : Income Tax Return forms for FY 2019-20 ( AY 2020-21 ) , ITR 1 & ITR 4 , were released by the Income tax Department in January itself .
But , the forms will undergo revision now and the fresh forms are expected to be released by the end of April month .
In view of the spread of pandemic coronavirus ( COVID 19 ) and the resultant national lock down announced by the Prime Minister , Government of India had allowed time extensions for availing various rebates for FY 2019-20 under Income tax laws and the new deadline is 30.06.2020 . During the extended period , one who was unable to invest in 80C / 80D , 80G instruments can invest up to 30.06.2020 .
The extensions of timelines has necessitated Revision of IT forms already notified . The new revised forms are expected to be released by the month end and the software for submitting the IT Forms will be ready by the end of May month only .
Hence now you will have time up to 30.06.2020 for investing in tax saving instruments and process of filing IT Returns can begin only by June month . IT department is yet to announce if there will be extension of deadline for filing IT Return forms also
To read the Press Release dated 19.04.2020 . CLICK HERE
Dated 20.04.2020 : Income Tax Return forms for FY 2019-20 ( AY 2020-21 ) , ITR 1 & ITR 4 , were released by the Income tax Department in January itself .
But , the forms will undergo revision now and the fresh forms are expected to be released by the end of April month .
In view of the spread of pandemic coronavirus ( COVID 19 ) and the resultant national lock down announced by the Prime Minister , Government of India had allowed time extensions for availing various rebates for FY 2019-20 under Income tax laws and the new deadline is 30.06.2020 . During the extended period , one who was unable to invest in 80C / 80D , 80G instruments can invest up to 30.06.2020 .
The extensions of timelines has necessitated Revision of IT forms already notified . The new revised forms are expected to be released by the month end and the software for submitting the IT Forms will be ready by the end of May month only .
Hence now you will have time up to 30.06.2020 for investing in tax saving instruments and process of filing IT Returns can begin only by June month . IT department is yet to announce if there will be extension of deadline for filing IT Return forms also
To read the Press Release dated 19.04.2020 . CLICK HERE
CLARIFICATIONS ISSUED ON TDS ON SALARIES / PENSION
Dated 14.04 .2020 : FM Ms Nirmala Sitharaman had announced in her budget speech . a new optional tax regime which allows lower taxes if the assessee opts to forgo Rebates and exemptions . Accordingly section 115 BAC was introduced in the Income tax act . The concessional rate provided under section 115 BAC of the Act is subject to the condition that the total income shall be computed without specified exemption or deduction, setoff of loss and additional depreciation.
The Finance Ministry has now come out with clarification with regard to TDS modalities to be followed in case one wants to opt tax regime under Section 115 ABC . Accordingly ,
1. an employee, having income other than the income under the head "profit and gains of business or profession" and intending to opt for the concessional rate under section 115 BAC of the Act, may intimate his employer, of such intention for each previous year and upon such intimation, the employer has to compute his total income, and make TDS thereon in accordance with the provisions of section 115 BAC of the Act.
2. If such intimation is not made by the employee, the employer shall make
TDS without considering the provision of section 115 BAC of the Act.
3. intimation so made by the employee will be only for the purposes of TDS during the previous year and cannot be modified during that year.
4. However, the intimation would not amount to exercising option in terms of sub-section (S) of section 115 BAC of the Act . Thus, option at the time of filing of return of income could be different from the intimation made by such employee to the employer for that previous year.
5. however if you have income under the head "profit and gains of business
or profession" also, the option for taxation under section 115 BAC of the Act once exercised for a previous year at the time of filing of return of income under cannot be changed for subsequent previous years except in certain circumstances.
To read Ministry of Finance circular dated 13.04.2020 in this regard , CLICK HERE
Dated 14.04 .2020 : FM Ms Nirmala Sitharaman had announced in her budget speech . a new optional tax regime which allows lower taxes if the assessee opts to forgo Rebates and exemptions . Accordingly section 115 BAC was introduced in the Income tax act . The concessional rate provided under section 115 BAC of the Act is subject to the condition that the total income shall be computed without specified exemption or deduction, setoff of loss and additional depreciation.
The Finance Ministry has now come out with clarification with regard to TDS modalities to be followed in case one wants to opt tax regime under Section 115 ABC . Accordingly ,
1. an employee, having income other than the income under the head "profit and gains of business or profession" and intending to opt for the concessional rate under section 115 BAC of the Act, may intimate his employer, of such intention for each previous year and upon such intimation, the employer has to compute his total income, and make TDS thereon in accordance with the provisions of section 115 BAC of the Act.
2. If such intimation is not made by the employee, the employer shall make
TDS without considering the provision of section 115 BAC of the Act.
3. intimation so made by the employee will be only for the purposes of TDS during the previous year and cannot be modified during that year.
4. However, the intimation would not amount to exercising option in terms of sub-section (S) of section 115 BAC of the Act . Thus, option at the time of filing of return of income could be different from the intimation made by such employee to the employer for that previous year.
5. however if you have income under the head "profit and gains of business
or profession" also, the option for taxation under section 115 BAC of the Act once exercised for a previous year at the time of filing of return of income under cannot be changed for subsequent previous years except in certain circumstances.
To read Ministry of Finance circular dated 13.04.2020 in this regard , CLICK HERE
UNION BUDGET 2020-21 AND SENIOR CITIZENS
In our blog article , we have explored what the new IT regime means to senior citizens and what extent senior citizens / retirees / pensioners are gaining / losing from the new regime .As the new regime is optional , one can take studied decisions before opting either of the new or old scheme .
In our blog article , we have explored what the new IT regime means to senior citizens and what extent senior citizens / retirees / pensioners are gaining / losing from the new regime .As the new regime is optional , one can take studied decisions before opting either of the new or old scheme .
IF YOU ARE WAITING FOR IT REFUND , HERE IS GOOD NEWS FOR YOU
Dated 09.04 .2020 : The Finance Ministry has decided to make payment of all Income Tax refunds payable by them up to Rs 5.00 lakhs immediately , in view of hardship being suffered by them due to spread of Covid -19 .
It expects around 14 lakh income tax payers will be benefited by this move to the tune of Rs 18,000 crores .
For Press note dated 08.04.2020 in this regard , CLICK HERE
Dated 09.04 .2020 : The Finance Ministry has decided to make payment of all Income Tax refunds payable by them up to Rs 5.00 lakhs immediately , in view of hardship being suffered by them due to spread of Covid -19 .
It expects around 14 lakh income tax payers will be benefited by this move to the tune of Rs 18,000 crores .
For Press note dated 08.04.2020 in this regard , CLICK HERE
VALIDITY OF FORM 15G/ 15H EXTENDED
Dated 03.04 .2020 : The Finance Ministry through an order has extended the validity of Form 15G / 15H submitted for FY 2019-20 till 30.06.2020 . Banks are asked not to deduct TDS on their interest payments during April to June 2020 ( which is accounted for FY 2020-21 ) , if the customer has already furnished the valid forms during the previous financial year 2019-20 .
However banks are asked to furnish a statement at the end of the quarter the details of such payments / credits made without deducting TDS .
For Finance Ministry order dated 03.04.2020 , CLICK HERE
WHAT IS FORM 15G / 15H ?
FORM 15G is the declaration that a Bank Deposit holder can submit to the banker if he/ she want exemption from Tax Deduction at Source ( TDS ) on the interest paid on the deposits .
A resident senior citizen who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H , in lieu of FORM 15G
WHO IS ELIGIBLE TO SUBMIT ? CLICK HERE FOR DETAILS
Dated 03.04 .2020 : The Finance Ministry through an order has extended the validity of Form 15G / 15H submitted for FY 2019-20 till 30.06.2020 . Banks are asked not to deduct TDS on their interest payments during April to June 2020 ( which is accounted for FY 2020-21 ) , if the customer has already furnished the valid forms during the previous financial year 2019-20 .
However banks are asked to furnish a statement at the end of the quarter the details of such payments / credits made without deducting TDS .
For Finance Ministry order dated 03.04.2020 , CLICK HERE
WHAT IS FORM 15G / 15H ?
FORM 15G is the declaration that a Bank Deposit holder can submit to the banker if he/ she want exemption from Tax Deduction at Source ( TDS ) on the interest paid on the deposits .
A resident senior citizen who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H , in lieu of FORM 15G
WHO IS ELIGIBLE TO SUBMIT ? CLICK HERE FOR DETAILS
EXTENSION OF TIME LIMIT IS OFFICIAL NOW
Dated 01.04 .2020 : The Finance Ministry through an ordinance passed on 31.03.2020 has extended time limits of various provisions of Income Tax act , which was announced by FM Ms Nirmala Sitharaman on 24.03.2020 .
Now as per Press note issued by Finance Ministry , you can claim tax rebates under section 80C , 80D & 80G for FY 2019-20 for the payments made in eligible instruments up to 30.06.2020 . The time limit for linking Aadhaar with PAN number is extended up to 30.06.2020 . If you have not filed IT Return for Fy 2018-19 , you can file it now up to 30.06.2020 . The time limit for making payment under section 54 to 54 GB for claiming under Capital gains is also extended up to 30.06.2020 . Vivad se Viswas scheme is also extended up to 30.06.2020 .
Further for your contribution to PM CARE FUND up to 30.06.2020 , you can claim tax rebate either in FY 2019-20 or Fy 2010-21 .
For IT Department press note dated 31.03.2020 , CLICK HERE
FOE E-GAZETTE DATED 01.04.2020 , CLICK HERE
Dated 01.04 .2020 : The Finance Ministry through an ordinance passed on 31.03.2020 has extended time limits of various provisions of Income Tax act , which was announced by FM Ms Nirmala Sitharaman on 24.03.2020 .
Now as per Press note issued by Finance Ministry , you can claim tax rebates under section 80C , 80D & 80G for FY 2019-20 for the payments made in eligible instruments up to 30.06.2020 . The time limit for linking Aadhaar with PAN number is extended up to 30.06.2020 . If you have not filed IT Return for Fy 2018-19 , you can file it now up to 30.06.2020 . The time limit for making payment under section 54 to 54 GB for claiming under Capital gains is also extended up to 30.06.2020 . Vivad se Viswas scheme is also extended up to 30.06.2020 .
Further for your contribution to PM CARE FUND up to 30.06.2020 , you can claim tax rebate either in FY 2019-20 or Fy 2010-21 .
For IT Department press note dated 31.03.2020 , CLICK HERE
FOE E-GAZETTE DATED 01.04.2020 , CLICK HERE
NO EXTENSION OF FINANCIAL YEAR : IT DEPARTMENT
Dated 31.03.2020 : The Finance Ministry has reconfirmed that there is no extension of Financial year 2019-2020 which is ending today ( 31.03.2020 ) in the wake of fake news being circulated that FY has been extended up to 30.06.2020 .
In fact FM on 24.03 2020 ,had announced extension of " Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020. "
Further she had extended due date Aadhaar -PAN linking to 30.06.2020 as well as last date for filing IT Returns for Fy 2018-19 to 30.06.2020 .
However there is no extension of Financial year 2019-20 and it will end today . Hence one has to reckon income up to 31.03.2020 as his annual income for making Income tax payment for FY 2019-20 . But as per the announcement of FM , you will have time up to 30.06.2020 to contribute to / purchase Tax saving instruments under various sections like 80C , 80D etc for claiming tax rebates for the FY 2019-20 .
IT department is yet to publish notification in this regard indicating terms of extension and we have to wait for their detailed instructions .
For Press release of Finance Ministry , CLICK HERE
Dated 31.03.2020 : The Finance Ministry has reconfirmed that there is no extension of Financial year 2019-2020 which is ending today ( 31.03.2020 ) in the wake of fake news being circulated that FY has been extended up to 30.06.2020 .
In fact FM on 24.03 2020 ,had announced extension of " Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020. "
Further she had extended due date Aadhaar -PAN linking to 30.06.2020 as well as last date for filing IT Returns for Fy 2018-19 to 30.06.2020 .
However there is no extension of Financial year 2019-20 and it will end today . Hence one has to reckon income up to 31.03.2020 as his annual income for making Income tax payment for FY 2019-20 . But as per the announcement of FM , you will have time up to 30.06.2020 to contribute to / purchase Tax saving instruments under various sections like 80C , 80D etc for claiming tax rebates for the FY 2019-20 .
IT department is yet to publish notification in this regard indicating terms of extension and we have to wait for their detailed instructions .
For Press release of Finance Ministry , CLICK HERE
FM ANNOUNCES VARIOUS MEASURES IN THE WAKE OF LOCK DOWN ACROSS THE COUNTRY
Dated 25.03.2020 : In view of the present scenario unfolding in India in the wake of spread of pandemic , Finance Minister Ms Nirmala Sitharaman announced various measures helping tax payers and other citizens . Some of the important announcements are :
1 Extend .last date for income tax returns for (FY 18-19) from 31st March, 2020 to 30th June, 2020.
2. Aadhaar-PAN linking date to be extended from 31st March, 2020 to 30th 2. June, 2020.
3. Vivad se Vishwas scheme – no additional 10% amount, if payment made by June 30, 2020.
4. Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth
Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum ( i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.
5.Necessary legal circulars and legislative amendments for giving effect to the aforesaid relief shall be issued in due course
To read the complete details of announcement , CLICK HERE
Dated 25.03.2020 : In view of the present scenario unfolding in India in the wake of spread of pandemic , Finance Minister Ms Nirmala Sitharaman announced various measures helping tax payers and other citizens . Some of the important announcements are :
1 Extend .last date for income tax returns for (FY 18-19) from 31st March, 2020 to 30th June, 2020.
2. Aadhaar-PAN linking date to be extended from 31st March, 2020 to 30th 2. June, 2020.
3. Vivad se Vishwas scheme – no additional 10% amount, if payment made by June 30, 2020.
4. Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth
Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum ( i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.
5.Necessary legal circulars and legislative amendments for giving effect to the aforesaid relief shall be issued in due course
To read the complete details of announcement , CLICK HERE
TDS ON SALARY ONLY FOR TAXABLE INCOME : IT DEPT CLARIFIES
Dated 08.03.2020 : Through a corrigendum to circular no 4/ 2020 , Income Tax department has clarified that No Tax at Source ( TDS ) will be required to be collected unless estimated value of salary including perquisites exceeds taxable income after giving effect to all rebates , exemptions and deductions .
In case your employer has deducted TDS without applying eligible deductions , you may bring to their notice the corrigendum of the IT Department
For corrigendum , CLICK HERE
Dated 08.03.2020 : Through a corrigendum to circular no 4/ 2020 , Income Tax department has clarified that No Tax at Source ( TDS ) will be required to be collected unless estimated value of salary including perquisites exceeds taxable income after giving effect to all rebates , exemptions and deductions .
In case your employer has deducted TDS without applying eligible deductions , you may bring to their notice the corrigendum of the IT Department
For corrigendum , CLICK HERE
SPEND ON FOREIGN TOUR OR CHILDREN'S EDUCATION ABROAD AND PAY INCOME TAX IN ADVANCE
Dated 21 .02.2020 : If you buy foreign tour package , the seller of the package will have to collect additional amount of 5 % along with the tour package cost as an Advance Income Tax ( TCS - Tax Collected at Source ) ) from you . If you remit more than Rs 7 lakhs under Liberalised Remittance Scheme of the Reserve Bank of India ( the scheme under which many parents remit funds to their children studying abroad ) , the Authorized Dealer through whom you remit will collect additional amount of 5 % along with the exchange cost as Income Tax . Further if you do not furnish PAN / Aadhaar number during the transaction , the percentage of such income tax collection will increase to 10 % instead of 5 % .
The TCS collected by you is only advance income tax collected and you can adjust the collected amount at the time of submitting your IT Returns for the year FY 2020-21 . If you are not liable for any tax , you may claim refund while submitting IT returns . If one does not file IT Return , the amount collected under TCS will lie with the government .
The above provisions are made by amending section 206C of Income Tax Act and is expected to come to force from 01st, April 2020 , provided the Finance Bill submitted by the Finance Minister during the budget presentation for FY 2020-21 is passed by the parliament .
It is opined that the provisions may only apply for Indian tour operators who have foreign tour packages and an Indian traveler who books flights and hotels abroad directly may escape from the provisions . It is also reported in the press that Travel Agents Association of India ( TAAI ) has appealed for repealing the provisions .
Dated 21 .02.2020 : If you buy foreign tour package , the seller of the package will have to collect additional amount of 5 % along with the tour package cost as an Advance Income Tax ( TCS - Tax Collected at Source ) ) from you . If you remit more than Rs 7 lakhs under Liberalised Remittance Scheme of the Reserve Bank of India ( the scheme under which many parents remit funds to their children studying abroad ) , the Authorized Dealer through whom you remit will collect additional amount of 5 % along with the exchange cost as Income Tax . Further if you do not furnish PAN / Aadhaar number during the transaction , the percentage of such income tax collection will increase to 10 % instead of 5 % .
The TCS collected by you is only advance income tax collected and you can adjust the collected amount at the time of submitting your IT Returns for the year FY 2020-21 . If you are not liable for any tax , you may claim refund while submitting IT returns . If one does not file IT Return , the amount collected under TCS will lie with the government .
The above provisions are made by amending section 206C of Income Tax Act and is expected to come to force from 01st, April 2020 , provided the Finance Bill submitted by the Finance Minister during the budget presentation for FY 2020-21 is passed by the parliament .
It is opined that the provisions may only apply for Indian tour operators who have foreign tour packages and an Indian traveler who books flights and hotels abroad directly may escape from the provisions . It is also reported in the press that Travel Agents Association of India ( TAAI ) has appealed for repealing the provisions .
OLD IS GOLD , IF EXEMPTIONS EXCEED RS 2.5 LAKHS
Dated 10.02.2020 : Whatever may be your age & whatever may be your income , you will pay lesser income tax in the FY 2020-21 in the existing tax structure compared with the New simplified tax Regime brought by our FM , IF YOUR EXEMPTIONS WHICH ARE SCRAPPED IN THE NEW REGIME ARE MORE THAN RS 2,50,000 .
The exemptions that you may have include standard deduction , 80TTA ,
80 TTB , 80C , 80D , 80EE , 80EEA etc .
It's a simple rule and you may verify yourself by clicking here
Further as your exemptions go on increasing above Rs 2.50 lakhs , the additional tax payment you have to make will go on increasing .
Suppose you have annual income of Rs 25 lakhs and your present exemptions are 10 lakhs , you may have to pay additional tax of
Rs 2,34,000 . Hence compare yourself and decide which regime is good for you .
Dated 10.02.2020 : Whatever may be your age & whatever may be your income , you will pay lesser income tax in the FY 2020-21 in the existing tax structure compared with the New simplified tax Regime brought by our FM , IF YOUR EXEMPTIONS WHICH ARE SCRAPPED IN THE NEW REGIME ARE MORE THAN RS 2,50,000 .
The exemptions that you may have include standard deduction , 80TTA ,
80 TTB , 80C , 80D , 80EE , 80EEA etc .
It's a simple rule and you may verify yourself by clicking here
Further as your exemptions go on increasing above Rs 2.50 lakhs , the additional tax payment you have to make will go on increasing .
Suppose you have annual income of Rs 25 lakhs and your present exemptions are 10 lakhs , you may have to pay additional tax of
Rs 2,34,000 . Hence compare yourself and decide which regime is good for you .
COMPARE INCOME TAX UNDER OLD AND NEW REGIMES
Dated 06.02.2020 : Today Income Tax Department provided a new Income tax calculator for FY 2020-21 in which you can find how much benefit / loss you will have by migrating to new tax regime from old regime by just feeding
1. Age Group
2. Estimated annual Income for FY 2020-21
3 . Estimated exemptions you are eligible for FY 2020-21 .
The calculator will give you tax liability under both regimes and will tell you how much you save or lose in the new regime .
CLICK HERE TO access the Calculator
UNION BUDGET 2020-21 AND SENIOR CITIZENS
In our new blog article , we have explored what the new IT regime means to senior citizens and what extent senior citizens / retirees / pensioners are gaining / losing from the new regime .As the new regime is optional , one can take studied decisions before opting either of the new or old scheme .
In our new blog article , we have explored what the new IT regime means to senior citizens and what extent senior citizens / retirees / pensioners are gaining / losing from the new regime .As the new regime is optional , one can take studied decisions before opting either of the new or old scheme .
FORGO FOLLOWING REBATES TO AVAIL BENEFITS OF NEW SIMPLIFIED TAX REGIME :
01.02.2020 : FM Ms Nirmala Sitharaman announced a new optional tax regime which allows lower taxes if the assessee opts to forgo Rebates and exemptions .
Following Rebates / deductions , apart from many others not listed here , will have to be foregone to avail the new tax rates
1. Standard Deduction of Rs 50,000 allowed for salaried persons / pensioners .
2. Cumulative deduction of Rs 1.5 lakhs allowed under Section 80C, 80CCC, and Section 80 CCD for savings/investments, premium for annuity / pension fund
3. Deductions allowed for Rs 50,000 / 1,50,000 under Section 80 EE / 80 EEA for the Interest on Housing loans with certain conditions
4. Deduction allowed under 80 E for interest on education loan taken for pursuing Higher Education .
5. Deductions allowed for Rs 2.00 lakhs under Section 24 for the Interest on Housing loans
6. Deductions allowed for Rs 1,50,000 under Section 80 EEB for the Interest on loans taken for purchase of electric vehicles .
7. Interest on savings bank accounts allowed up to Rs 10,000 under Section 80TTA and for senior citizens only if they have not claimed under section 80TTB
8. Interest received by a senior citizen on deposits with banks / co-operative societies / post office up to Rs 50,000 under section 80 TTB .
9. Deduction allowed for Health insurance Policies under 80 D up to Rs. 50,000/- for senior citizens and up to Rs. 25,000/- for others .
If you forgo the above deductions and rebates , the Income tax slabs for you will be as follows :
1. Up to Rs 2,50,000 NIL
2. From Rs 2,50,001 to Rs 5,00,000 5 per cent.
3.From Rs 5,00,001 to Rs 7,50,000 10 per cent.
4.From Rs 7,50,001 to Rs 10,00,000 15 per cent.
5.From Rs 10,00,001 to Rs 12,50,000 20 per cent.
6.From Rs 12,50,001 to Rs 15,00,000 25 per cent.
7. Above Rs 15,00,000 30 per cent. .
If you want to utilise the rebates and deductions available , the rates will be as per TAX SLABS FOR FY 2019-20 ( CLICK HERE TO VIEW ) .
Now calculate which is beneficial to you , especially if you have eligible rebates like Health insurance , life insurance , housing loan , education loan , PF , STANDARD DEDUCTION FOR SALARY / PENSION , Bank interest for senior citizens etc and decide .
NOW CHOICE IS YOURS AND SELECT YOUR OPTION JUDICIOUSLY
01.02.2020 : FM Ms Nirmala Sitharaman announced a new optional tax regime which allows lower taxes if the assessee opts to forgo Rebates and exemptions .
Following Rebates / deductions , apart from many others not listed here , will have to be foregone to avail the new tax rates
1. Standard Deduction of Rs 50,000 allowed for salaried persons / pensioners .
2. Cumulative deduction of Rs 1.5 lakhs allowed under Section 80C, 80CCC, and Section 80 CCD for savings/investments, premium for annuity / pension fund
3. Deductions allowed for Rs 50,000 / 1,50,000 under Section 80 EE / 80 EEA for the Interest on Housing loans with certain conditions
4. Deduction allowed under 80 E for interest on education loan taken for pursuing Higher Education .
5. Deductions allowed for Rs 2.00 lakhs under Section 24 for the Interest on Housing loans
6. Deductions allowed for Rs 1,50,000 under Section 80 EEB for the Interest on loans taken for purchase of electric vehicles .
7. Interest on savings bank accounts allowed up to Rs 10,000 under Section 80TTA and for senior citizens only if they have not claimed under section 80TTB
8. Interest received by a senior citizen on deposits with banks / co-operative societies / post office up to Rs 50,000 under section 80 TTB .
9. Deduction allowed for Health insurance Policies under 80 D up to Rs. 50,000/- for senior citizens and up to Rs. 25,000/- for others .
If you forgo the above deductions and rebates , the Income tax slabs for you will be as follows :
1. Up to Rs 2,50,000 NIL
2. From Rs 2,50,001 to Rs 5,00,000 5 per cent.
3.From Rs 5,00,001 to Rs 7,50,000 10 per cent.
4.From Rs 7,50,001 to Rs 10,00,000 15 per cent.
5.From Rs 10,00,001 to Rs 12,50,000 20 per cent.
6.From Rs 12,50,001 to Rs 15,00,000 25 per cent.
7. Above Rs 15,00,000 30 per cent. .
If you want to utilise the rebates and deductions available , the rates will be as per TAX SLABS FOR FY 2019-20 ( CLICK HERE TO VIEW ) .
Now calculate which is beneficial to you , especially if you have eligible rebates like Health insurance , life insurance , housing loan , education loan , PF , STANDARD DEDUCTION FOR SALARY / PENSION , Bank interest for senior citizens etc and decide .
NOW CHOICE IS YOURS AND SELECT YOUR OPTION JUDICIOUSLY
TDS ON SALARY AT MINIMUM 20% IF PAN / AADHAAR NOT FURNISHED BY THE EMPLOYEE
Dated 25 .01.2020 : Central Board of direct Taxes ( CBDT ) has directed all employers to deduct minimum 20 % of salary / pension paid during the financial year 2019-20 as TDS ( Tax Deducted at Source ) if employee fails to submit his / her PAN / aadhaar number , vide their Circular No 04/2020 dated 16.01.2020 . However the income of the employee computed for TDS u/s 192 is below taxable limit, no tax will be deducted .
The circular gives exhaustive guidelines to help the employers to understand various clauses of income tax rules .
As per Para 4.7 of the circular
" Taxpayers are also liable to furnish their correct PAN or Aadhaar number as the case may be,to their deductors. Non-furnishing of PAN or or Aadhaar number as the case may be,by the deductee (employee) to the deductor (employer) will result in deduction of TDS at higher rates u/s 206AA of the Act mentioned in para 4.8 below. "
The para 4.8 reads :
quote :
" Section 206AA in the Act makes furnishing of PAN or Aadhaar number as the case may be,by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible. If employee (deductee) fails to furnish his/her PAN or Aadhaar number as the case may be,to the deductor , the deductor has been made responsible to make TDS at higher of the following rates:
i) at the rate specified in the relevant provision of this Act; or
ii) at the rate or rates in force; or
iii) at the rate of twenty per cent.
The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS. However, where the income of the employee computed for TDS u/s 192 is below taxable limit, no tax will be deducted. But where the income of the employee computed for TDS u/s 192 is above taxable limit, the deductor will calculate the average rate of income- tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to be deducted at the average rate. Health and Education cess @ 4% is not to be deducted, in case the tax is deducted at 20% u/s 206AA of the Act. "
Dated 25 .01.2020 : Central Board of direct Taxes ( CBDT ) has directed all employers to deduct minimum 20 % of salary / pension paid during the financial year 2019-20 as TDS ( Tax Deducted at Source ) if employee fails to submit his / her PAN / aadhaar number , vide their Circular No 04/2020 dated 16.01.2020 . However the income of the employee computed for TDS u/s 192 is below taxable limit, no tax will be deducted .
The circular gives exhaustive guidelines to help the employers to understand various clauses of income tax rules .
As per Para 4.7 of the circular
" Taxpayers are also liable to furnish their correct PAN or Aadhaar number as the case may be,to their deductors. Non-furnishing of PAN or or Aadhaar number as the case may be,by the deductee (employee) to the deductor (employer) will result in deduction of TDS at higher rates u/s 206AA of the Act mentioned in para 4.8 below. "
The para 4.8 reads :
quote :
" Section 206AA in the Act makes furnishing of PAN or Aadhaar number as the case may be,by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible. If employee (deductee) fails to furnish his/her PAN or Aadhaar number as the case may be,to the deductor , the deductor has been made responsible to make TDS at higher of the following rates:
i) at the rate specified in the relevant provision of this Act; or
ii) at the rate or rates in force; or
iii) at the rate of twenty per cent.
The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS. However, where the income of the employee computed for TDS u/s 192 is below taxable limit, no tax will be deducted. But where the income of the employee computed for TDS u/s 192 is above taxable limit, the deductor will calculate the average rate of income- tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to be deducted at the average rate. Health and Education cess @ 4% is not to be deducted, in case the tax is deducted at 20% u/s 206AA of the Act. "
NEW IT RETURN FORMS RELEASED FOR FY 2019-20 ( AY 2020-21 )
Dated 11.01.2020 : Normally Income Tax Department releases fo IT Return forms for the financial year after completion of te financial year .However this year , for a pleasant surprise , IT has released ITR Return Forms ITR 1 SAHAJ and ITR 4 SUGAM for the financial year 2019-20 ( ay 20-21 ) in January itself .
CLICK ON THE FORM NO TO DOWNLOAD
1. Form No.:ITR-1 SAHAJ :
For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income up to Rs.5 thousand . Not to be used by an individual who is a Director of a company or if he has invested in unlisted equity shares
2. Form No.:ITR-4 Sugam :
For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE
[Not for an individual who is either Director in a company or has invested in unlisted equity shares .
Earlier on 03.01.2010 , IT Department had issued a notification , by which owners of jointly owned property or any other persons who had to submit IT Returns on account of section 139 ( 1 ) were made ineligible to submit either ITR-1 & ITR 4 .
However IT Department , vide notification dated 10.01.2010 , has taken back the order and the conditions for submitting the forms continue to be as per earlier year's eligibility . ( CLICK HERE FOR NOTIFICATION )
Previously FM had announced making availability of Pre-Filled forms to ease the process of filling and submitting the forms . We hope the department will implement the scheme and provide the forms on completion of the financial year
Dated 11.01.2020 : Normally Income Tax Department releases fo IT Return forms for the financial year after completion of te financial year .However this year , for a pleasant surprise , IT has released ITR Return Forms ITR 1 SAHAJ and ITR 4 SUGAM for the financial year 2019-20 ( ay 20-21 ) in January itself .
CLICK ON THE FORM NO TO DOWNLOAD
1. Form No.:ITR-1 SAHAJ :
For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income up to Rs.5 thousand . Not to be used by an individual who is a Director of a company or if he has invested in unlisted equity shares
2. Form No.:ITR-4 Sugam :
For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE
[Not for an individual who is either Director in a company or has invested in unlisted equity shares .
Earlier on 03.01.2010 , IT Department had issued a notification , by which owners of jointly owned property or any other persons who had to submit IT Returns on account of section 139 ( 1 ) were made ineligible to submit either ITR-1 & ITR 4 .
However IT Department , vide notification dated 10.01.2010 , has taken back the order and the conditions for submitting the forms continue to be as per earlier year's eligibility . ( CLICK HERE FOR NOTIFICATION )
Previously FM had announced making availability of Pre-Filled forms to ease the process of filling and submitting the forms . We hope the department will implement the scheme and provide the forms on completion of the financial year
HAVE YOU RECEIVED IT NOTICE RECENTLY ? DON'T WORRY
Dated 24.12. 2019 : Income Tax Department had sent notices in December 1st week to many persons who had submitted IT Returns for for the financial year 2018-19 ( Assessment year 2019-20 ) . The Notices were issued under u/s 143 ( 1 ) pointing out discrepancies in the returns submitted and needed replies from the assessee .
Now Income tax department has found that such notices were issued due to glitches in their software and hence asked the receivers to ignore the notices and await for fresh communication . IT department has sent such communications individually by SMS messages .
It is reported that most of the wrong computation by IT Department software has happened to the persons having Capital gain from Stock market transaction with Long term Gains .
If you are one of the tax payers who have received notice , you may wait for fresh communication from IT department .
Dated 24.12. 2019 : Income Tax Department had sent notices in December 1st week to many persons who had submitted IT Returns for for the financial year 2018-19 ( Assessment year 2019-20 ) . The Notices were issued under u/s 143 ( 1 ) pointing out discrepancies in the returns submitted and needed replies from the assessee .
Now Income tax department has found that such notices were issued due to glitches in their software and hence asked the receivers to ignore the notices and await for fresh communication . IT department has sent such communications individually by SMS messages .
It is reported that most of the wrong computation by IT Department software has happened to the persons having Capital gain from Stock market transaction with Long term Gains .
If you are one of the tax payers who have received notice , you may wait for fresh communication from IT department .
IT DEPARTMENT LAUNCHES FACELESS ASSESSMENT
Dated 08.10.2019 : As announced by Finance minister in her Budget speech , Income tax Department launched Faceless Assessment of Income tax Returns from 07th October , 2019 onward .
Under e-Assessment scheme 2019:-
(i) There would be state of the art Digital Technology for Risk Management by
way of automated examination tool, Artificial Intelligence and Machine
Learning, with a view to review the scope of discretion of the officers of
Income Tax Department.
(ii) The e-Assessment Scheme introduces the concept of team based
assessment with dynamic jurisdiction which would bring about transparency, efficiency and standardisation of procedures by eliminating the human interface between the taxpayer and the Income-tax Department.
(iii) There would be a NeAC in Delhi to be headed by Principal Chief
Commissioner of Income-tax,
(iv) 8 Regional e-Assessment Centres (ReAC) at Delhi, Mumbai, Chennai,
Kolkata Ahmedabad, Pune, Bengaluru and Hyderabad which would comprise
Assessment unit, Review unit, Technical unit and Verification units.
(v) Cases for the specified work shall be assigned by the NeAC to different units by way of automated allocation systems.
In the first phase, the Income Tax Department has selected 58,322 cases for
scrutiny under the e-Assessment Scheme 2019 and the e-notices have been served before 30th of September 2019 for the cases of Assessment Year 2018-19. The taxpayers have been advised to check their registered e-filing accounts/ email ids and have been requested to furnish reply within 15 days. The Department hopes that with the ease of compliance for taxpayers, the cases would be disposed off expeditiously.
IT department expects the scheme will bring down cost and anxiety for public will come down with regard to compliance of IT rules .
For Press Release of IT Department dated 07.10.2019 , CLICK HERE
Dated 08.10.2019 : As announced by Finance minister in her Budget speech , Income tax Department launched Faceless Assessment of Income tax Returns from 07th October , 2019 onward .
Under e-Assessment scheme 2019:-
(i) There would be state of the art Digital Technology for Risk Management by
way of automated examination tool, Artificial Intelligence and Machine
Learning, with a view to review the scope of discretion of the officers of
Income Tax Department.
(ii) The e-Assessment Scheme introduces the concept of team based
assessment with dynamic jurisdiction which would bring about transparency, efficiency and standardisation of procedures by eliminating the human interface between the taxpayer and the Income-tax Department.
(iii) There would be a NeAC in Delhi to be headed by Principal Chief
Commissioner of Income-tax,
(iv) 8 Regional e-Assessment Centres (ReAC) at Delhi, Mumbai, Chennai,
Kolkata Ahmedabad, Pune, Bengaluru and Hyderabad which would comprise
Assessment unit, Review unit, Technical unit and Verification units.
(v) Cases for the specified work shall be assigned by the NeAC to different units by way of automated allocation systems.
In the first phase, the Income Tax Department has selected 58,322 cases for
scrutiny under the e-Assessment Scheme 2019 and the e-notices have been served before 30th of September 2019 for the cases of Assessment Year 2018-19. The taxpayers have been advised to check their registered e-filing accounts/ email ids and have been requested to furnish reply within 15 days. The Department hopes that with the ease of compliance for taxpayers, the cases would be disposed off expeditiously.
IT department expects the scheme will bring down cost and anxiety for public will come down with regard to compliance of IT rules .
For Press Release of IT Department dated 07.10.2019 , CLICK HERE
- INCOME TAX COMMUNICATIONS TO COME WITH DIN FROM NOW ON
Dated 03 .010.2019 : Press Release of Finance Ministry dated 01.10.2019 announces that all communication from Income Tax Department will come with Document Identification number ( DIN ) . All notices , orders , summons or any other letters have to carry DIN to make them valid .
The receiver of the communication can verify the genuineness of the communication by going to e-filing site of income tax department . (For the link to the site , CLICK HERE ) . By feeding DIN and OTP received from IT department , one can confirm the authenticity .
The scheme initiated by the Finance Minister will help the tax payers to weed out fraudulent messages they receive purported to be from Income tax department .
For Press release dated 01.10.2019 , CLICK HERE
- DEADLINE EXTENDED FOR LINKING OF AADHAAR TO PAN NUMBER
Dated 29.09.2019 : Income Tax Department , vide Notification dated 28.09.2019 has extended deadline for linking of Aadhaar to Pan number to 31st , December 2019 . Earlier deadline was 30th , September 2019 . Income Tax departments derives power to notify the procedure and time limit to link Aadhaar to PAN the section 139AA of income tax act .
As per the act , Pan number will become invalid if the same is not linked to the aadhaar number within the prescribed time limit notified by the income tax department .
For notification dated 28.09.2019 , CLICK HERE
For SECTION 139 AA of income tax act , CLICK HERE
CORPORATE TAX SLASHED : FM
20.09.2019 : Today Finance Minister announced slashing of corporate tax to 25 .17 per cent inclusive of all cess to all domestic companies for the current financial year . In effect , corporate tax will be only 22 % for domestic companies .
Mrs Nirmala Sitharaman also announced host of other measures including option to pay 15 % tax for new companies set up after 01.10.2019 , non-appliacability of higher surchase on sale of equities and MFs by FPIs etc .
It is expected that the measures will cost Rs 1.45 lakh crores to the government in this financial year
20.09.2019 : Today Finance Minister announced slashing of corporate tax to 25 .17 per cent inclusive of all cess to all domestic companies for the current financial year . In effect , corporate tax will be only 22 % for domestic companies .
Mrs Nirmala Sitharaman also announced host of other measures including option to pay 15 % tax for new companies set up after 01.10.2019 , non-appliacability of higher surchase on sale of equities and MFs by FPIs etc .
It is expected that the measures will cost Rs 1.45 lakh crores to the government in this financial year
YOU HAVE TO FILE IT RETURN IF YOU TRAVEL ABROAD SPENDING RS 2 LAKHS
09.07.2019 : From the financial year 2019-20 , you have to submit your IT Return if you have
1. expended more than Rs. 2 lakh on foreign travel or
2. paid more than Rs. 1 lakh on electricity consumption in a year
3. deposited more than Rs. 1 crore in a current account in a year,
even if your income is less than the threshold limit .
It is also proposed to provide that a person whose income becomes lower than maximum amount not chargeable to tax due to claim of rollover benefit of capital gains shall also be required to furnish the return.
The above proposals has been brought by the Finance Minister Nirmala Sitharaman in her budget speech made in the parliament on 05.07.2019 . For further details of budget proposals , CLICK HERE
Presently FOR FY 2018-19 , only those persons / HUF have to submit IT Return if
1. Income exceeding Rs 2,50,000 in case of individuals below 60 years
2. Income exceeding Rs 3,00,000 in case of individuals above 60 years and below 80 years
3. Income exceeding Rs 5,00,000 in case of individuals above 80 years .
09.07.2019 : From the financial year 2019-20 , you have to submit your IT Return if you have
1. expended more than Rs. 2 lakh on foreign travel or
2. paid more than Rs. 1 lakh on electricity consumption in a year
3. deposited more than Rs. 1 crore in a current account in a year,
even if your income is less than the threshold limit .
It is also proposed to provide that a person whose income becomes lower than maximum amount not chargeable to tax due to claim of rollover benefit of capital gains shall also be required to furnish the return.
The above proposals has been brought by the Finance Minister Nirmala Sitharaman in her budget speech made in the parliament on 05.07.2019 . For further details of budget proposals , CLICK HERE
Presently FOR FY 2018-19 , only those persons / HUF have to submit IT Return if
1. Income exceeding Rs 2,50,000 in case of individuals below 60 years
2. Income exceeding Rs 3,00,000 in case of individuals above 60 years and below 80 years
3. Income exceeding Rs 5,00,000 in case of individuals above 80 years .
- DEADLINE EXTENDED FOR ISSUE OF SALARY CERTIFICATE FORM 16
Dated 04.06.2019 : Today Income Tax Department , vide order under Section 119 has extended deadline for issue of the salary certificate ( Form No 16 ) to be given by employers to their employees to 10th, July 2019 from existing 15th, June 2019 . .
In May month , the department had revised the form 16 with inclusion of part B .
Part B requires detailed information on various aspects of salary including perquisites / allowances paid and deductions made by the employer from the salary ) towards various income tax rebates like insurance premium
Further Income Department also has extended due date for submitting TDS statement by the employers in Form 24 Q to 30th , June 2019 from existing 31st , May 2019 .
Employers are now required to issue form 16 before 10, July 19 for the Financial year 2018-19 . Employees may check that correct new revised form has been issued by their employers while receiving the form .
For revised Form 16 , CLICK HERE . To read the order , CLICK HERE
SENIOR CITIZENS CAN CLAIM TDS EXEMPTION UP TO RS 5 LAKHS INCOME AND SUBMIT 15H FOR FY 2019-20
Dated 24.05.2019 : If you are having fixed deposit with a bank / post office and you are a senior citizen , you can submit Form 15H and claim exemption provided your estimated total income is less than Rs 5 lakhs in the year fy 2019-20 , as per the notification dated 22.05.2019 issued by revenue Department . The notification advises banks and post offices to accept 15H form after taking to account rebate available under section 87A of Income tax act .
Normally the bank will deduct tax at source once the amount of interest to be credited in respect of all the fixed deposits taken together exceeds Rs 50,000 in case of resident senior citizen .
A resident senior citizen who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H provided his estimated tax liability is nil for the financial year though the total amount of interest from all sources may exceed Rs. 3.00 lacs, the minimum amount liable for tax. With the enhancement of rebate available under 87 A to Rs 12,500 , total income up to Rs 5.00 lakhs become tax exempt from the current year FY 2019-20 .
To view the notification , CLICK HERE DOWNLOAD FORM15H
Caution : Any wrong or false / wrong declaration attracts penalty under section 277 . A person can be prosecuted and can be liable for 3 months to 7 years of imprisonment for such false declarations . Hence please check your eligibility before submitting the forms .
Dated 24.05.2019 : If you are having fixed deposit with a bank / post office and you are a senior citizen , you can submit Form 15H and claim exemption provided your estimated total income is less than Rs 5 lakhs in the year fy 2019-20 , as per the notification dated 22.05.2019 issued by revenue Department . The notification advises banks and post offices to accept 15H form after taking to account rebate available under section 87A of Income tax act .
Normally the bank will deduct tax at source once the amount of interest to be credited in respect of all the fixed deposits taken together exceeds Rs 50,000 in case of resident senior citizen .
A resident senior citizen who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H provided his estimated tax liability is nil for the financial year though the total amount of interest from all sources may exceed Rs. 3.00 lacs, the minimum amount liable for tax. With the enhancement of rebate available under 87 A to Rs 12,500 , total income up to Rs 5.00 lakhs become tax exempt from the current year FY 2019-20 .
To view the notification , CLICK HERE DOWNLOAD FORM15H
Caution : Any wrong or false / wrong declaration attracts penalty under section 277 . A person can be prosecuted and can be liable for 3 months to 7 years of imprisonment for such false declarations . Hence please check your eligibility before submitting the forms .
- SALARY CERTIFICATE FORM 16 REVISED
Dated 13.05.2019 : Income Tax Department , vide notification no 09/2019 dated 06.05.2019 , has revised the salary certificate indicating Tax Deducted at Source
( Form No 16 ) to be issued by employers to their employees . The new form has additional part B which requires detailed information on various aspects of salary including perquisites / allowances paid and deductions made by the employer from the salary ) towards various income tax rebates like insurance premia ,
Thus the new revised Form 16 will help to fill up revised IT Return forms prescribed for the Financial year 2018-19 ( AY 2019-20 )
Employers are required to issue form 16 before 15, June 19 for the Financial year 2018-19 . Employees may check that correct new revised form has been issued by their employers while receiving the form .
For revised Form 16 , CLICK HERE . For Notification , CLICK HERE
NEW IT RETURN FORMS RELEASED FOR FY 2018-19 ( AY 19-20 )
Dated 06.04.2019 : Income Tax Department has released following IT Return forms for the financial year 1018-19 ( Assessment year 2019-20 ) . Last date for filing return is 31.07.2019 . The forms are more elaborate in obtaining income information , especially for other incomes . ( CLICK ON THE FORM NO TO DOWNLOAD )
1. Form No.:ITR-1 SAHAJ :
For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income up to Rs.5 thousand . Not to be used by an individual who is a Director of a company or if he has invested in unlisted equity shares
2. Form No.:ITR-2 :
For Individuals and HUFs not having income from profits and gains of business or profession
3. Form No.:ITR- 3 :
For individuals and HUFs having income from profits and gains of business or profession
4. Form No.:ITR-4 Sugam :
For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE
[Not for an individual who is either Director in a company or has invested in unlisted equity shares (A5)
5. Form No.:ITR-5 :
For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7
(Please see Rule 12 of the Income-tax Rules,1962 Is there any change in the name If yes, please furnish the old name Limited Liability Partnership Identification Number (LLPIN
6. Form No.:ITR-6 :
For Companies other than companies claiming exemption under section 11
(Please see rule 12 of the Income-tax Rules,1962 Is there any change in the company’s name If yes, please furnish the old name Corporate Identity Number (CIN) issued by MCA
7. Form No.:ITR-7 For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only
ITR Acknowledgement
Dated 06.04.2019 : Income Tax Department has released following IT Return forms for the financial year 1018-19 ( Assessment year 2019-20 ) . Last date for filing return is 31.07.2019 . The forms are more elaborate in obtaining income information , especially for other incomes . ( CLICK ON THE FORM NO TO DOWNLOAD )
1. Form No.:ITR-1 SAHAJ :
For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income up to Rs.5 thousand . Not to be used by an individual who is a Director of a company or if he has invested in unlisted equity shares
2. Form No.:ITR-2 :
For Individuals and HUFs not having income from profits and gains of business or profession
3. Form No.:ITR- 3 :
For individuals and HUFs having income from profits and gains of business or profession
4. Form No.:ITR-4 Sugam :
For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE
[Not for an individual who is either Director in a company or has invested in unlisted equity shares (A5)
5. Form No.:ITR-5 :
For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7
(Please see Rule 12 of the Income-tax Rules,1962 Is there any change in the name If yes, please furnish the old name Limited Liability Partnership Identification Number (LLPIN
6. Form No.:ITR-6 :
For Companies other than companies claiming exemption under section 11
(Please see rule 12 of the Income-tax Rules,1962 Is there any change in the company’s name If yes, please furnish the old name Corporate Identity Number (CIN) issued by MCA
7. Form No.:ITR-7 For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only
ITR Acknowledgement
IT IS TIME TO SUBMIT FORM 15G / 15H FOR FY 2019-20
Dated 05.04.2019 : If you are having fixed deposit with a bank / post office , the bank will deduct tax at source once the amount of interest to be credited in respect of all the fixed deposits taken together exceeds Rs. 40,000 in the financial year and Rs 50,000 in case of resident senior citizen . However a resident person or HUF , whose tax on the estimated income for the year is nil and the amount of interest income from all the sources does not exceed the minimum exemption limit ( presently Rs 2,50,000/- ), can submit the Form.15G . ( Please note that both conditions are to be fulfilled to become eligible to submit the form 15G. )
For Senior Citizens : A resident senior citizen l who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H provided his estimated tax liability is nil for the financial year though the total amount of interest from all sources may exceed Rs. 3.00 lacs, the minimum amount liable for tax.
Caution : Any wrong or false / wrong declaration attracts penalty under section 277 . A person can be prosecuted and can be liable for 3 months to 7 years of imprisonment for such false declarations . Hence please check your eligibility before submitting the forms .
DOWNLOAD FORM15H DOWNLOAD FORM 15G
Dated 05.04.2019 : If you are having fixed deposit with a bank / post office , the bank will deduct tax at source once the amount of interest to be credited in respect of all the fixed deposits taken together exceeds Rs. 40,000 in the financial year and Rs 50,000 in case of resident senior citizen . However a resident person or HUF , whose tax on the estimated income for the year is nil and the amount of interest income from all the sources does not exceed the minimum exemption limit ( presently Rs 2,50,000/- ), can submit the Form.15G . ( Please note that both conditions are to be fulfilled to become eligible to submit the form 15G. )
For Senior Citizens : A resident senior citizen l who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H provided his estimated tax liability is nil for the financial year though the total amount of interest from all sources may exceed Rs. 3.00 lacs, the minimum amount liable for tax.
Caution : Any wrong or false / wrong declaration attracts penalty under section 277 . A person can be prosecuted and can be liable for 3 months to 7 years of imprisonment for such false declarations . Hence please check your eligibility before submitting the forms .
DOWNLOAD FORM15H DOWNLOAD FORM 15G
LAST DATE FOR PAYING ADVANCE TAX IS 15.03.2019
Dated 12.03.2019 : The last date for paying advance income tax for financial year 2018-19 is 15th , March 2019 . 100 % of tax calculated for the year fy 2018-19 is to be paid as advance tax , after deducting the earlier advance tax already paid .
For salaried persons / pensioners , employers would have already deducted TDS on their salary / pensions and hence need of paying advance tax separately may not arise .
However a Resident senior Citizen is exempted for paying advance tax , if he has no income from business or profession . He / she can discharge his tax liability by paying self assessment tax .
For calculating advance tax , CLICK HERE and
for making payment of advance tax CLICK HERE
Dated 12.03.2019 : The last date for paying advance income tax for financial year 2018-19 is 15th , March 2019 . 100 % of tax calculated for the year fy 2018-19 is to be paid as advance tax , after deducting the earlier advance tax already paid .
For salaried persons / pensioners , employers would have already deducted TDS on their salary / pensions and hence need of paying advance tax separately may not arise .
However a Resident senior Citizen is exempted for paying advance tax , if he has no income from business or profession . He / she can discharge his tax liability by paying self assessment tax .
For calculating advance tax , CLICK HERE and
for making payment of advance tax CLICK HERE
GUIDELINES FOR TDS ON SALARY / PENSION
Attn : Persons Responsible for payment of salary / pension and Deduction of Income Tax at Source
Dated 22.01.2019 : Recently published circular relating to TDS by Central Board of direct Taxes ( CBDT ) has invaluable information on the entire gamut of Income tax on salary / pension including
1. Tax rate structure
2. Treatment of Perquisites for tax purpose
3. Investment and other Rebates available
4. Calculation / due date / mode of payment of TDS
5. Penalties for delay / non remittance of TDS
6. Declarations to be obtained and verified for allowing rebates
7. Statements to be furnished by TDS collectors along with procedures .
8. Examples of TDS on different categories of employees / pensioners .
The circular guides the persons responsible for disbursing salaries and pensions in detailed way with regard to collection / deduction of income tax at source and its disposal . By reading the circular , Such persons can gain knowledge about income tax and utilize it to avoid complications later .
Further the employees / pensioners who want to know how TDS has been deducted from their salaries / pensions can also read the circular .
To go through the crcular , Click Circular No 01/2019 dated 01.01.2019 .
TDS ON PENSIONS TO BE DEDUCTED BY BANKERS
Dated 06.01.2019 : Central Board of direct Taxes ( CBDT ) has directed all banks to treat Pension paid by them as equivalent to salaries and deduct TDS for the financial year 2018-19 as being deducted for the salaries , vide their Circular No 01/2019 dated 01.01.2019 .
The circular gives exhaustive guidelines to help the banks to understand various clauses of income tax rules . The para regarding pension reads :
quote :
" In the case of pensioners who receive their pension (not being family pension paid to a spouse) from a nationalized bank, the instructions contained in this circular shall apply in the same manner as they apply to salary-income. The deductions from the amount of pension under section 80C on account of contribution to Life Insurance, Provident Fund, NSC etc., if the pensioner furnishes the relevant details to the banks, may be allowed. "
Hence pensioners can submit declaration in the form 12 BB to utilise the rebates given and avoid TDS.
To print Form 12BB , CLICK HERE
Dated 06.01.2019 : Central Board of direct Taxes ( CBDT ) has directed all banks to treat Pension paid by them as equivalent to salaries and deduct TDS for the financial year 2018-19 as being deducted for the salaries , vide their Circular No 01/2019 dated 01.01.2019 .
The circular gives exhaustive guidelines to help the banks to understand various clauses of income tax rules . The para regarding pension reads :
quote :
" In the case of pensioners who receive their pension (not being family pension paid to a spouse) from a nationalized bank, the instructions contained in this circular shall apply in the same manner as they apply to salary-income. The deductions from the amount of pension under section 80C on account of contribution to Life Insurance, Provident Fund, NSC etc., if the pensioner furnishes the relevant details to the banks, may be allowed. "
Hence pensioners can submit declaration in the form 12 BB to utilise the rebates given and avoid TDS.
To print Form 12BB , CLICK HERE
CBDT WARNS PUBLIC AGAIN AGAINST CERTAIN CASH TRANSACTIONS
Dated 23.12.2018 : As per recent press release issued by Central Board of Direct taxes ( CBDT ) ,public are warned again against undertaking certain cash transactions , which are already prohibited by the Government of India . The press release warns against taking following 5 transactions :
1. NO CASH TRANSACTIONS EXCEPT BANKING ABOVE RS TWO LAKHS
2. NOT TO RECEIVE / REPAY RS 20,000 OR MORE INCASH FOR TRANSFER OF IMMOVABLE PROPERTIES
3. NOT TO PAY MORE THAN RS 10,000 IN CASH FOR EXPENDITURES RELATING TO BUSINESS / PROFESSION
4. NOT TO DONATE IN EXCESS OF RS 2,000 IN CASH TO A REGISTERED TRUST / POLITICAL PARTY
5. ANY CASH PAYMENT MADE FOR HEALTH INSURANCE PREMIUM IS NOT ALLOWABLE FOR DEDUCTION UNDER SECTION 80D
For the cash trasaction above Rs 2,00,000 , rule is :
No person shall receive an amount of Rupees two lakhs or more in aggregate from a person in a single day or in respect of single transaction or in respect of transactions arising from a single event or occasion other than by an account payee cheque or account payee bank draft or through use of electronic clearing system of a bank . In other words , cash transactions above Rs 2 lakhs are not permitted . Any contravention will attract penalty equivalent to transaction amount. For this purpose , new sub sections 269 ST & 271 DA have been added to Income Tax Act .
However Governments Departments , Banks , Co-operative societies and post Office savings bank accounts are exempted from the provisions of the above rule .
For Helath insurance premium :
All payments for health insurance premium should have been made in any mode other than cash . Cost of preventive health check up up to Rs 5,000 can be claimed within the overall limit and it could have been made in cash also .
Deduction allowed on Health insurance Policies under 80 D is Rs. 50,000/- for senior citizens and up to Rs. 25,000/- for others . For senior citizens , if no insurance amount is paid , hospital expenditure up to Rs 50,000 is allowed . An assessee can claim additional Rs 50,000 for his / her parents if they are senior citizens and Rs 25,000 in other cases . Overall claim cannot exceed Rs 1,00,000 .
So it is advisable to go by the rule and not to violate law as Government of India is also seeking information from neighborhood on any violation and black money trasactions .
Dated 23.12.2018 : As per recent press release issued by Central Board of Direct taxes ( CBDT ) ,public are warned again against undertaking certain cash transactions , which are already prohibited by the Government of India . The press release warns against taking following 5 transactions :
1. NO CASH TRANSACTIONS EXCEPT BANKING ABOVE RS TWO LAKHS
2. NOT TO RECEIVE / REPAY RS 20,000 OR MORE INCASH FOR TRANSFER OF IMMOVABLE PROPERTIES
3. NOT TO PAY MORE THAN RS 10,000 IN CASH FOR EXPENDITURES RELATING TO BUSINESS / PROFESSION
4. NOT TO DONATE IN EXCESS OF RS 2,000 IN CASH TO A REGISTERED TRUST / POLITICAL PARTY
5. ANY CASH PAYMENT MADE FOR HEALTH INSURANCE PREMIUM IS NOT ALLOWABLE FOR DEDUCTION UNDER SECTION 80D
For the cash trasaction above Rs 2,00,000 , rule is :
No person shall receive an amount of Rupees two lakhs or more in aggregate from a person in a single day or in respect of single transaction or in respect of transactions arising from a single event or occasion other than by an account payee cheque or account payee bank draft or through use of electronic clearing system of a bank . In other words , cash transactions above Rs 2 lakhs are not permitted . Any contravention will attract penalty equivalent to transaction amount. For this purpose , new sub sections 269 ST & 271 DA have been added to Income Tax Act .
However Governments Departments , Banks , Co-operative societies and post Office savings bank accounts are exempted from the provisions of the above rule .
For Helath insurance premium :
All payments for health insurance premium should have been made in any mode other than cash . Cost of preventive health check up up to Rs 5,000 can be claimed within the overall limit and it could have been made in cash also .
Deduction allowed on Health insurance Policies under 80 D is Rs. 50,000/- for senior citizens and up to Rs. 25,000/- for others . For senior citizens , if no insurance amount is paid , hospital expenditure up to Rs 50,000 is allowed . An assessee can claim additional Rs 50,000 for his / her parents if they are senior citizens and Rs 25,000 in other cases . Overall claim cannot exceed Rs 1,00,000 .
So it is advisable to go by the rule and not to violate law as Government of India is also seeking information from neighborhood on any violation and black money trasactions .
TDS AND TAX ON INTEREST FOR SENIOR CITIZENS : FURTHER CLARIFICATIONS
Dated 17.12.2018 : We had published news item wherein Income Tax Department , vide notification issued by its Directorate of Income Tax ( systems ) dated 06.12.2018 , had clarified that no TDS ( Tax Deducted at Source ) as applicable under section
194A is to be applied by banks and post offices for senior citizens , if the aggregate of interest paid by them during the financial year does not exceed Rs 50,000 .
Some of our Readers sought clarification on TDS / Tax to be paid on interest received by them , if the interest amount they receive exceeds Rs 50,000 .
The notification dated 06.12.2018 , ( to read CLICK HERE ) is silent on the issue of TDS for interest [paid above Rs 50,000 . However on the issue of tax liability , section 80TTB is clear which we reproduce below
SECTION 80TTB
" 80TTB. (1) Where the gross total income of an assessee, being a senior citizen, includes any income by way of interest on deposits with--
(a) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);
(b) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or
(c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),
there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction--
(i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount; and
(ii) in any other case, fifty thousand rupees.
(2) Where the income referred to in sub-section (1) is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.
Explanation.—For the purposes of this section, "senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.
The section amply makes it clear that tax liability on interest received by a senior citizen will be reduced for Rs 50,000 if the interest received is above Rs 50,000
Dated 17.12.2018 : We had published news item wherein Income Tax Department , vide notification issued by its Directorate of Income Tax ( systems ) dated 06.12.2018 , had clarified that no TDS ( Tax Deducted at Source ) as applicable under section
194A is to be applied by banks and post offices for senior citizens , if the aggregate of interest paid by them during the financial year does not exceed Rs 50,000 .
Some of our Readers sought clarification on TDS / Tax to be paid on interest received by them , if the interest amount they receive exceeds Rs 50,000 .
The notification dated 06.12.2018 , ( to read CLICK HERE ) is silent on the issue of TDS for interest [paid above Rs 50,000 . However on the issue of tax liability , section 80TTB is clear which we reproduce below
SECTION 80TTB
" 80TTB. (1) Where the gross total income of an assessee, being a senior citizen, includes any income by way of interest on deposits with--
(a) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);
(b) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or
(c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),
there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction--
(i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount; and
(ii) in any other case, fifty thousand rupees.
(2) Where the income referred to in sub-section (1) is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.
Explanation.—For the purposes of this section, "senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.
The section amply makes it clear that tax liability on interest received by a senior citizen will be reduced for Rs 50,000 if the interest received is above Rs 50,000
NO TDS UP TO RS 50,000 INTEREST FOR SENIOR CITIZENS : IT DEPART CLARIFIES
Dated 10.12.2018 : Income Tax Department , vide notification issued by its Directorate of Income Tax ( systems ) dated 06.12.2018 , clarified that no TDS ( Tax Deducted at Source ) as applicable under section 194 A is to be applied by banks and post offices for senior citizens , if the aggregate of interest paid by them during the financial year does not exceed Rs 50,000 .
In case any bank / post office insists on deducting TDS for interest paid by them up to Rs 50,000 , you may download , print the notification and present it for their perusal .
To go through the notification dated 06.12.2018 , CLICK HERE
To know about Tax Rates , CLICK HERE
To know about various Fixed Income Products available for investment , CLICK HERE
NO TDS UP TO RS 50,000 INTEREST FOR SENIOR CITIZENS : IT DEPART CLARIFIES
Dated 10.12.2018 : Income Tax Department , vide notification issued by its Directorate of Income Tax ( systems ) dated 06.12.2018 , clarified that no TDS ( Tax Deducted at Source ) as applicable under section 194 A is to be applied by banks and post offices for senior citizens , if the aggregate of interest paid by them during the financial year does not exceed Rs 50,000 .
In case any bank / post office insists on deducting TDS for interest paid by them up to Rs 50,000 , you may download , print the notification and present it for their perusal .
To go through the notification dated 06.12.2018 , CLICK HERE
To know about Tax Rates , CLICK HERE
To know about various Fixed Income Products available for investment , CLICK HERE
LAST DATE FOR PAYING THIRD INSTALLMENT OF ADVANCE TAX IS 15.12.2018
Dated 08.12.2018 : The last date for paying Third installment of advance income tax for financial year 2018-19 is 15th , December 2018 . One has to pay advance tax if total tax liability for the year exceeds Rs 10,000 and 75 % of tax calculated for the year Fy 2018-19 is to be paid as advance tax after deducting the earlier installments already paid .
For salaried persons , employers would have already deducted TDS on their salary and hence need of paying advance tax separately may not arise .
However a Resident senior Citizen is exempted for paying advance tax , if he / she has no income from business or profession . He / she can discharge his tax liability by paying self assessment tax .
For calculating advance tax , CLICK HERE and
for making payment of advance tax CLICK HERE
Dated 08.12.2018 : The last date for paying Third installment of advance income tax for financial year 2018-19 is 15th , December 2018 . One has to pay advance tax if total tax liability for the year exceeds Rs 10,000 and 75 % of tax calculated for the year Fy 2018-19 is to be paid as advance tax after deducting the earlier installments already paid .
For salaried persons , employers would have already deducted TDS on their salary and hence need of paying advance tax separately may not arise .
However a Resident senior Citizen is exempted for paying advance tax , if he / she has no income from business or profession . He / she can discharge his tax liability by paying self assessment tax .
For calculating advance tax , CLICK HERE and
for making payment of advance tax CLICK HERE
SINGLE PARENT PERSONS CAN APPLY FOR PAN WITH MOTHER'S NAME ONLY
Dated 07.12.2018 : As per the notification issued by Ministry of Finance , government of India on 19.11.2018 ,it is no longer mandatory to mention Father's name in their PAN applications for persons who have their mother as single parent .
Such persons with mother as single parent can now have option to mention mother's name only and they can get the name of their mother printed in the PAN card .
To read the notification , CLICK HERE
Dated 07.12.2018 : As per the notification issued by Ministry of Finance , government of India on 19.11.2018 ,it is no longer mandatory to mention Father's name in their PAN applications for persons who have their mother as single parent .
Such persons with mother as single parent can now have option to mention mother's name only and they can get the name of their mother printed in the PAN card .
To read the notification , CLICK HERE
NEW INCOME TAX RULES FOR NON-INDIVIDUALS WITH REGARD TO OBTENTION OF PAN
Dated 22.11.2018 : As per the notification issued by Ministry of Finance , government of India on 19.11.2018 , persons related to non -individual entities like , Partnership , company , HUF , trusts etc must apply and obtain PAN number before31st , May of the next year and details are as below :
1. Any entity , other than individual who conduct financial transactions of more than Rs 2.50 lakhs in a financial year , must apply and obtain PAN number before 31st , May of the following year , if the entity does not possess a PAN number .
2. The persons associated with any entity ( non-individual ) like managing director director ,partner , founder , karta , author , trustee , chief executive officer , principal officer , office bearer etc or any other person competant to act on behalf of the non-entity , must obtain PAN number before 31st , May if he/she enters in to financial transaction on behalf of the entity .
To read the notification , CLICK HERE
Dated 22.11.2018 : As per the notification issued by Ministry of Finance , government of India on 19.11.2018 , persons related to non -individual entities like , Partnership , company , HUF , trusts etc must apply and obtain PAN number before31st , May of the next year and details are as below :
1. Any entity , other than individual who conduct financial transactions of more than Rs 2.50 lakhs in a financial year , must apply and obtain PAN number before 31st , May of the following year , if the entity does not possess a PAN number .
2. The persons associated with any entity ( non-individual ) like managing director director ,partner , founder , karta , author , trustee , chief executive officer , principal officer , office bearer etc or any other person competant to act on behalf of the non-entity , must obtain PAN number before 31st , May if he/she enters in to financial transaction on behalf of the entity .
To read the notification , CLICK HERE
LAST DATE FOR SUBMITTING IT RETURNS FOR BUSINESS IS EXTENDED
Dated 25.09.2018 : The last date for submitting Income Tax Return for business requiring audit is extended up to 15.10 2018 from present 30.09.2018 for financial year 2018-19 . However there shall be no extension of the due date for the purpose of paying interest for default in furnishing return under Section 234 A.
For the Ministry of Finance order dated 24.09.2018 , CLICK HERE
Dated 25.09.2018 : The last date for submitting Income Tax Return for business requiring audit is extended up to 15.10 2018 from present 30.09.2018 for financial year 2018-19 . However there shall be no extension of the due date for the purpose of paying interest for default in furnishing return under Section 234 A.
For the Ministry of Finance order dated 24.09.2018 , CLICK HERE
FAKE SMS MESSAGES ADVISING IT REFUND : CERT-IN WARNS
Dated 09.08.2018 : Indian Computer Emergency response Team ( CERT -IN ) of Ministry of Electronics & Information Technology , Government of India has warned that fake SMS messages purported to be sent by Income tax Department informing of IT Refunds are being received by the public in recent days . The fake message would typically advise the recipient of certain amount of IT Refund being initiated by the department and would ask the recipient to confirm the correctness of an account number . In case of error in the account number . it asks recipient to go to the shortened website link in the message and update the bank account details . Invariably such account numbers will be wrong .
Once the recipient clicks on the link , it will take to a fake website similar to incometaxefiling site . In the fake website , recipient will asked to feed his bank accounts along with log in name and password to confirm the updation . The criminals behind the fake website will steal the personal data along with bank details . It is learnt such details would be later to sold other criminals for perpetuating nefarious activities .
As this month is the time when large number of people would have submitted their IT Returns and would be awaiting for refunds , they become easy prey for the perpetrators of the crime .
Hence public warned of such fake messages and are advised to exercise caution before replying to suspicious SMS / e-mails . Public are advised not to click on the link provided in messages and are advised to go directly to IT department website . .In case of any phishing attacks , one may directly report on income tax website , by CLICKING HERE
For visiting website of CRT-IN , CLICK HERE
Dated 09.08.2018 : Indian Computer Emergency response Team ( CERT -IN ) of Ministry of Electronics & Information Technology , Government of India has warned that fake SMS messages purported to be sent by Income tax Department informing of IT Refunds are being received by the public in recent days . The fake message would typically advise the recipient of certain amount of IT Refund being initiated by the department and would ask the recipient to confirm the correctness of an account number . In case of error in the account number . it asks recipient to go to the shortened website link in the message and update the bank account details . Invariably such account numbers will be wrong .
Once the recipient clicks on the link , it will take to a fake website similar to incometaxefiling site . In the fake website , recipient will asked to feed his bank accounts along with log in name and password to confirm the updation . The criminals behind the fake website will steal the personal data along with bank details . It is learnt such details would be later to sold other criminals for perpetuating nefarious activities .
As this month is the time when large number of people would have submitted their IT Returns and would be awaiting for refunds , they become easy prey for the perpetrators of the crime .
Hence public warned of such fake messages and are advised to exercise caution before replying to suspicious SMS / e-mails . Public are advised not to click on the link provided in messages and are advised to go directly to IT department website . .In case of any phishing attacks , one may directly report on income tax website , by CLICKING HERE
For visiting website of CRT-IN , CLICK HERE
LAST DATE FOR SUBMISSION OF IT RETURNS EXTENDED TO
31ST AUGUST 2018 :
Dated 26.07.2018 : As per press notification issued by Central Board of Direct Taxes ( CBDT ) , last date for filing IT Returns extended by one month to 31.08.2018 from the present 31.07.2018 . Now a person obliged to submit IT Return has to submit the same before 31.08.2018 for the Financial year 2017-18 ( Assessment year 2018-19 ) .
For press notification of CBDT , CLICK HERE
31ST AUGUST 2018 :
Dated 26.07.2018 : As per press notification issued by Central Board of Direct Taxes ( CBDT ) , last date for filing IT Returns extended by one month to 31.08.2018 from the present 31.07.2018 . Now a person obliged to submit IT Return has to submit the same before 31.08.2018 for the Financial year 2017-18 ( Assessment year 2018-19 ) .
For press notification of CBDT , CLICK HERE
FREE INSTANT NEW E-PAN NUMBER IS AVAILABLE
Dated 30.06.2018 : For the Indian residents who do not hold PAN number so far , Income Tax department has opened a facility to get PAN Number instantly , if applicants already hold Aadhaar card . The facility is available free of cost . On applying on-line , Income tax department will allot PAN Number after verifying OTP sent to the mobile number attached to Aadhaar . Initially the applicant will receive 15 digit acknowledgement . On generation of PAN number , applicant will receive SMS /email alert and subsequently one can download PAN Card . Details on the application should exactly match the details available on aadhaar .
E-PAN number will be generated using particulars available in Aadhaar data base , such as date of birth , gender , mobile number and address . Applicants have also to upload their signature on a white paper in JPEG format .
The facility is not available for non-residents , minors , HUF , firms , trusts and companies .
The details of the scheme are available on incometaxefiling website
Dated 30.06.2018 : For the Indian residents who do not hold PAN number so far , Income Tax department has opened a facility to get PAN Number instantly , if applicants already hold Aadhaar card . The facility is available free of cost . On applying on-line , Income tax department will allot PAN Number after verifying OTP sent to the mobile number attached to Aadhaar . Initially the applicant will receive 15 digit acknowledgement . On generation of PAN number , applicant will receive SMS /email alert and subsequently one can download PAN Card . Details on the application should exactly match the details available on aadhaar .
E-PAN number will be generated using particulars available in Aadhaar data base , such as date of birth , gender , mobile number and address . Applicants have also to upload their signature on a white paper in JPEG format .
The facility is not available for non-residents , minors , HUF , firms , trusts and companies .
The details of the scheme are available on incometaxefiling website
INCOME TAX DEPARTMENT WARNS TAX DEDUCTORS AGAINST DELAY IN SUBMISSION OF QUARTERLY STATEMENT
Dated 18.05.2018 : Central Board of Direct Taxes ( CBDT ) today warned tax deductors , through paper advertisements , not to delay submission of quarterly statement of Tax Deducted at Source ( TDS ) for the quarter ending March 2018 .
The deadline for filing statement is 31st , May 2018 and delay attracts a fine of Rs 200 per day . The tax deductors should have already deposited the tax deducted up to March 2018 by 30.04.2018 and issued TDS Certificate by 15.05.2018 .
Income tax assessees will not be able to match their tax credits , by tallying TDS Certificates with 26 AS uploaded at TRACES , unless the quarterly statement is submitted by the tax deductors and uploaded at Income tax Department .
For tax calendar to be adhered by deductors in 2018 , CLICK HERE
Dated 18.05.2018 : Central Board of Direct Taxes ( CBDT ) today warned tax deductors , through paper advertisements , not to delay submission of quarterly statement of Tax Deducted at Source ( TDS ) for the quarter ending March 2018 .
The deadline for filing statement is 31st , May 2018 and delay attracts a fine of Rs 200 per day . The tax deductors should have already deposited the tax deducted up to March 2018 by 30.04.2018 and issued TDS Certificate by 15.05.2018 .
Income tax assessees will not be able to match their tax credits , by tallying TDS Certificates with 26 AS uploaded at TRACES , unless the quarterly statement is submitted by the tax deductors and uploaded at Income tax Department .
For tax calendar to be adhered by deductors in 2018 , CLICK HERE
PERSONAL INCOME TAX RETURN FORMS ITR 1 TO ITR 4 CAN NOW BE SUBMITTED ONLINE FOR FY 2017-18 AY 18-19
Dated 17.05.2018 :
Income Tax e-filing website today enabled submission of ITR-3 on-line on its e-filing website . It had already enabled ITR-1 , ITR2 and ITR4 for on-line submission . With making ITR 3 also available for e-filing , now Income Tax Return forms ITR1 to ITR 4 can be uploaded / e-filed on e-filing website .
ITR 1 is the income tax return for resident individuals who have taxable income less than Rs 50 lakhs from salary and pension and not having more than 1 housing property .and who do not have income from profit or income from capital gain , business or profession .
ITR 2 can be submitted by individuals who are not eligible to submit ITR 1 and who do not have income from business or profession . The return can used by people who have capital gain by way shares , mutual funds etc and who do not have professional / business income . It can be used by NRIs who have Indian income and who have to submit IT returns in India .
ITR 3 is for persons with income from business or profession who are not eligible to submit ITR 4 Sugam .
ITR4 ( Sugam ) can be submitted by individuals and HUFs / partnership firms who have income from business / profession .
Income Tax Department had released various IT Return forms for Financial year 2017 -18 and the last date for submission is 31.07.2018 for individuals and HUFs . Returns can be filed on -line now
For the forms , eligibility , links and other details , CLICK HERE
Dated 17.05.2018 :
Income Tax e-filing website today enabled submission of ITR-3 on-line on its e-filing website . It had already enabled ITR-1 , ITR2 and ITR4 for on-line submission . With making ITR 3 also available for e-filing , now Income Tax Return forms ITR1 to ITR 4 can be uploaded / e-filed on e-filing website .
ITR 1 is the income tax return for resident individuals who have taxable income less than Rs 50 lakhs from salary and pension and not having more than 1 housing property .and who do not have income from profit or income from capital gain , business or profession .
ITR 2 can be submitted by individuals who are not eligible to submit ITR 1 and who do not have income from business or profession . The return can used by people who have capital gain by way shares , mutual funds etc and who do not have professional / business income . It can be used by NRIs who have Indian income and who have to submit IT returns in India .
ITR 3 is for persons with income from business or profession who are not eligible to submit ITR 4 Sugam .
ITR4 ( Sugam ) can be submitted by individuals and HUFs / partnership firms who have income from business / profession .
Income Tax Department had released various IT Return forms for Financial year 2017 -18 and the last date for submission is 31.07.2018 for individuals and HUFs . Returns can be filed on -line now
For the forms , eligibility , links and other details , CLICK HERE
KEY CHANGES IN INCOME TAX RULES FOR FY 2018-19
Dated 10.04.2018 : Following are the key changes in Income Tax Rules for the financial year 2018-19 :
1. Income tax rates kept unchanged . Additional Health & Education cess of 1 % on Income tax from existing 3 % changed to 4 % .
2. Benefit on introduction of standard deduction of Rs 40,000 for salaried persons including pensioners . However transport allowance of Rs 19,200 and medical reimbursement of Rs 15,000 will not be available for Fy 2018-19 . Hence net difference is only Rs 5800 for those who are already availing transport allowance and medical reimbursement .
3. Long Term Capital Gain Tax on sale of equity shares and equity oriented mutual funds is introduced at 10 % for gains more than Rs 100,000 . Further no indexation allowed for calculating the gain . However gains earned up to January 31, 2018 will be allowed to grandfathered . Grandfathering is allowing of existing benefits for the previous period .
4. Dividend Distribution tax of 10 % to be paid on equity mutual funds .
5. Interest on deposits with post offices and banks will be exempted for an amount up to Rs 50,000 for senior citizens which is presently Rs 10,000 only for savings bank accounts under section 80TTA .
6. No TDS under section 194 a of income Tax act for interest paid to senior citizens . However Form 15 H to be submitted .
7. Tax rebate on Medical insurance taken by senior citizens is enhanced to Rs 50,000 from existing Rs 30,000 under section 80D .
8. Increase in deduction limit for expenses incurred on certain critical illness is increased to Rs 100,000 from existing Rs 60,000 for senior citizens and Rs 80,000 for very senior citizens
9. Limit of investment will be increased to Rs 15 lakhs from existing Rs 7.5 lakhs under Pradhan Mantri Vayovandana Yojana . Further the scheme will be extended up to March 2020 .
10. Single premium health insurance premium paid for more than 1 year can be proportionately claimed for each year under section 80D
Dated 10.04.2018 : Following are the key changes in Income Tax Rules for the financial year 2018-19 :
1. Income tax rates kept unchanged . Additional Health & Education cess of 1 % on Income tax from existing 3 % changed to 4 % .
2. Benefit on introduction of standard deduction of Rs 40,000 for salaried persons including pensioners . However transport allowance of Rs 19,200 and medical reimbursement of Rs 15,000 will not be available for Fy 2018-19 . Hence net difference is only Rs 5800 for those who are already availing transport allowance and medical reimbursement .
3. Long Term Capital Gain Tax on sale of equity shares and equity oriented mutual funds is introduced at 10 % for gains more than Rs 100,000 . Further no indexation allowed for calculating the gain . However gains earned up to January 31, 2018 will be allowed to grandfathered . Grandfathering is allowing of existing benefits for the previous period .
4. Dividend Distribution tax of 10 % to be paid on equity mutual funds .
5. Interest on deposits with post offices and banks will be exempted for an amount up to Rs 50,000 for senior citizens which is presently Rs 10,000 only for savings bank accounts under section 80TTA .
6. No TDS under section 194 a of income Tax act for interest paid to senior citizens . However Form 15 H to be submitted .
7. Tax rebate on Medical insurance taken by senior citizens is enhanced to Rs 50,000 from existing Rs 30,000 under section 80D .
8. Increase in deduction limit for expenses incurred on certain critical illness is increased to Rs 100,000 from existing Rs 60,000 for senior citizens and Rs 80,000 for very senior citizens
9. Limit of investment will be increased to Rs 15 lakhs from existing Rs 7.5 lakhs under Pradhan Mantri Vayovandana Yojana . Further the scheme will be extended up to March 2020 .
10. Single premium health insurance premium paid for more than 1 year can be proportionately claimed for each year under section 80D
STANDARD DEDUCTION ELIGIBLE FOR PENSIONERS TOO
Dated 06 .04 .2018 : Income Tax Department , through its twitter site , has clarified that a pensioner , who receives his pension from his former employer , is eligible to claim standard deduction of Rs 40,000 under section 16 of income Tax act for the financial year 2018-19 .
Press release of Finance Ministry dated 05.04.2018 : CLICK HERE
Dated 06 .04 .2018 : Income Tax Department , through its twitter site , has clarified that a pensioner , who receives his pension from his former employer , is eligible to claim standard deduction of Rs 40,000 under section 16 of income Tax act for the financial year 2018-19 .
Press release of Finance Ministry dated 05.04.2018 : CLICK HERE
INCOME TAX OFFICES TO REMAIN OPEN FROM 29TH MARCH TO 31ST MARCH 18
Dated 28 .03.2018 : In order to facilitate belated submission of IT Returns for the financial years 2015-16 ( Assessment year 2016-17 ) and Financial year 2016-17 ( Assessment year 2017-18 ) and revised returns for fy 2016-17 ( ay 2017-18 ) , Income tax offices will be kept open across India from 29.03.2018 to 31.03.2018 .
People who are yet to submit the returns may utilize the opportunity .
For Ministry of Finance press release in this regard , CLICK HERE
Dated 28 .03.2018 : In order to facilitate belated submission of IT Returns for the financial years 2015-16 ( Assessment year 2016-17 ) and Financial year 2016-17 ( Assessment year 2017-18 ) and revised returns for fy 2016-17 ( ay 2017-18 ) , Income tax offices will be kept open across India from 29.03.2018 to 31.03.2018 .
People who are yet to submit the returns may utilize the opportunity .
For Ministry of Finance press release in this regard , CLICK HERE
LAST DATE FOR PAYING ADVANCE TAX IS 15.03.2018
Dated 14.03.2018 : The last date for paying advance income tax for financial year 2017-18 is 15th , March 2018 . 100 % of tax calculated for the year fy 2017-18 is to be paid as advance tax , after deducting the earlier advance tax already paid .
For salaried persons , employers would have already deducted TDS on their salary and hence need of paying advance tax separately may not arise .
However a Resident senior Citizen is exempted for paying advance tax , if he has no income from business or profession . He / she can discharge his tax liability by paying self assessment tax .
Dated 14.03.2018 : The last date for paying advance income tax for financial year 2017-18 is 15th , March 2018 . 100 % of tax calculated for the year fy 2017-18 is to be paid as advance tax , after deducting the earlier advance tax already paid .
For salaried persons , employers would have already deducted TDS on their salary and hence need of paying advance tax separately may not arise .
However a Resident senior Citizen is exempted for paying advance tax , if he has no income from business or profession . He / she can discharge his tax liability by paying self assessment tax .
NEW HELPLINE NUMBER FOR E-RETURNS
Dated 12.01.2018 : Income tax department has recently changed e-filing Help desk number to
India Toll free : 1800 1030025
Direct Number : + 91 80 4612 2000
Dated 12.01.2018 : Income tax department has recently changed e-filing Help desk number to
India Toll free : 1800 1030025
Direct Number : + 91 80 4612 2000
TASK FORCE FORMED TO REVIEW INCOME TAX ACT
Dated 22.11.2017 : Government of India has constituted a task force with Mr Arbind Modi , Member Legislation CBDT as convener to review more than 50 year old Income Tax Act , 1961 . The terms of reference include study on systems prevailing in other countries , international best practice and need of the country .
The other members of the task force are
1. Sri Girish Ahuja , Chartered Accountant and Director of SBI
2. Sri Rajiv Memani , Chairman & Regional Managing Partner of E& Y
3. Sri Mukesh Patel , Practicing Tax Advocate , Ahmedabad
4. Ms Mansi Kedia , consultant ICRIER , New Delhi
5. Sri G.C. Srivastava , Retd IRS and Advocate .
The task force has been asked to submit its report within 6 months .
We may recall here that Prime Minister of India Mr Modi had talked of necessity to review 50 year old legislation during his address to Rajaswa Gyan Sangam in September 2017 . It is interesting to note that the same convener had submitted a report on Direct Tax code in 2009 and the report was placed in parliament too . It is presumed that the present committee will take forward the report made earlier .
For Press release of Finance Ministry ,, CLICK HERE
Dated 22.11.2017 : Government of India has constituted a task force with Mr Arbind Modi , Member Legislation CBDT as convener to review more than 50 year old Income Tax Act , 1961 . The terms of reference include study on systems prevailing in other countries , international best practice and need of the country .
The other members of the task force are
1. Sri Girish Ahuja , Chartered Accountant and Director of SBI
2. Sri Rajiv Memani , Chairman & Regional Managing Partner of E& Y
3. Sri Mukesh Patel , Practicing Tax Advocate , Ahmedabad
4. Ms Mansi Kedia , consultant ICRIER , New Delhi
5. Sri G.C. Srivastava , Retd IRS and Advocate .
The task force has been asked to submit its report within 6 months .
We may recall here that Prime Minister of India Mr Modi had talked of necessity to review 50 year old legislation during his address to Rajaswa Gyan Sangam in September 2017 . It is interesting to note that the same convener had submitted a report on Direct Tax code in 2009 and the report was placed in parliament too . It is presumed that the present committee will take forward the report made earlier .
For Press release of Finance Ministry ,, CLICK HERE
LIVE CHAT ON INCOME TAX WEBSITE
Dated 19.10.2017 : Income Tax Department has taken a new initiative and has launched LIVE CHAT on the home page of their website http://www.incometaxindia.gov.in/Pages/default.aspx .
One can go to the the page and click on the " LIVE CHAT " window between 10.00 am to 6.00 pm from Monday to Friday and seek answers on the basic queries and doubts they have on the issues of direct tax .
A person can enter the chat room by furnishing his / her email id and ask questions .
A team of experts from the department and practitioners will answer the queries .
Further a person can email the entire conversation to his email id for future reference .
However the department will not take any responsibilities on the replies gives as it considers such replies as individual opinions of the experts and they are not clarifications by the income tax department itself .
Dated 19.10.2017 : Income Tax Department has taken a new initiative and has launched LIVE CHAT on the home page of their website http://www.incometaxindia.gov.in/Pages/default.aspx .
One can go to the the page and click on the " LIVE CHAT " window between 10.00 am to 6.00 pm from Monday to Friday and seek answers on the basic queries and doubts they have on the issues of direct tax .
A person can enter the chat room by furnishing his / her email id and ask questions .
A team of experts from the department and practitioners will answer the queries .
Further a person can email the entire conversation to his email id for future reference .
However the department will not take any responsibilities on the replies gives as it considers such replies as individual opinions of the experts and they are not clarifications by the income tax department itself .
NO PAN CARD / AADHAR CARD NEEDED FOR JEWELRY PURCHASE
Dated 07.10.2017 : The government has rescinded earlier order of August 2017 wherein it was necessary to produce PAN CARD/ AADHAR NUMBER / KYC compliance for purchase of jewelry above Rs 50,000 and the transaction was coming under PMLA ( Prevention of Money Laundering Act ) . Further Jewelers now need not report the transactions to relevant authorities about the transactions under PMLA .
Dated 07.10.2017 : The government has rescinded earlier order of August 2017 wherein it was necessary to produce PAN CARD/ AADHAR NUMBER / KYC compliance for purchase of jewelry above Rs 50,000 and the transaction was coming under PMLA ( Prevention of Money Laundering Act ) . Further Jewelers now need not report the transactions to relevant authorities about the transactions under PMLA .
PROJECT INSIGHT : DATA ANALYTICS TO DIG TAX EVASION
Dated 11.09.2017 : According to newspapers , who based their reports on PTI coverage , Income Tax department has initiated a programme called PROJECT INSIGHT to gather data and information from social media sites like Whatsapp , Face Book , Instagram etc , analyse expenditure pattern using Data Analytics and utilise information to verify any mismatch between the declared income and the spending . It is reported that they have hired M/S L& T Infotech for implementing the project .
The project is presently in beta stage and is expected to be launched next month .
If implemented successfully , a posting by you showing your new car on an Instagram or a Facebook status update indicating a foreign trip or a group posting showcasing a costly jewelry may all lead to the steps of income tax office , if you have not submitted income tax return matching the expenses .
Thus with the help of data Analytics , by collecting data , data mining , collating and processing information , IT Department will endeavour to find evasion of tax and unearth black money .
The project will also use technology to collate tax returns , TDS/ TCS , Bank statements
Under the project and to find mismatches among them .
As part of the project , Compliance Management Centralised Processing Center ( CMCPC ) will be set up for handling preliminary verification , generation of bulk letters and follow up .
Dated 11.09.2017 : According to newspapers , who based their reports on PTI coverage , Income Tax department has initiated a programme called PROJECT INSIGHT to gather data and information from social media sites like Whatsapp , Face Book , Instagram etc , analyse expenditure pattern using Data Analytics and utilise information to verify any mismatch between the declared income and the spending . It is reported that they have hired M/S L& T Infotech for implementing the project .
The project is presently in beta stage and is expected to be launched next month .
If implemented successfully , a posting by you showing your new car on an Instagram or a Facebook status update indicating a foreign trip or a group posting showcasing a costly jewelry may all lead to the steps of income tax office , if you have not submitted income tax return matching the expenses .
Thus with the help of data Analytics , by collecting data , data mining , collating and processing information , IT Department will endeavour to find evasion of tax and unearth black money .
The project will also use technology to collate tax returns , TDS/ TCS , Bank statements
Under the project and to find mismatches among them .
As part of the project , Compliance Management Centralised Processing Center ( CMCPC ) will be set up for handling preliminary verification , generation of bulk letters and follow up .
PAN CARDS DEACTIVATED BY GOVERNMENT OF INDIA
Dated 08.08.2017 : Recently Minister of state for finance Mr S.K.Gangwar informed Rajyasabha that more than 11 lakh PAN numbers were deleted or deactivated as multiple PAN numbers were found to single individuals . Holding of more than one PAN number is also illegal and a penalty up to Rs 10,000 can be imposed under section 272B of the Income tax .
With this news , many want to know the status of their PAN Card and to confirm that their PAN numbers were not deactivated . Facility to verify the status of PAN number is available in e-filing site of the income tax department .
If you want to verify , go to the 'know your PAN ' of e-filing site by CLICKING HERE .
Fill the details of your name , date of birth etc correctly along with mobile number . Be careful to fill the name exactly as given for the PAN number . Once you submit , you will receive an OTP on your mobile . By filling OTP , you can know the status of your PAN along with the jurisdiction under which your PAN is associated .
Dated 08.08.2017 : Recently Minister of state for finance Mr S.K.Gangwar informed Rajyasabha that more than 11 lakh PAN numbers were deleted or deactivated as multiple PAN numbers were found to single individuals . Holding of more than one PAN number is also illegal and a penalty up to Rs 10,000 can be imposed under section 272B of the Income tax .
With this news , many want to know the status of their PAN Card and to confirm that their PAN numbers were not deactivated . Facility to verify the status of PAN number is available in e-filing site of the income tax department .
If you want to verify , go to the 'know your PAN ' of e-filing site by CLICKING HERE .
Fill the details of your name , date of birth etc correctly along with mobile number . Be careful to fill the name exactly as given for the PAN number . Once you submit , you will receive an OTP on your mobile . By filling OTP , you can know the status of your PAN along with the jurisdiction under which your PAN is associated .
IT OFFICES TO OPEN TILL MIDNIGHT FOR RECEIVING IT RETURNS
Dated 05.08.2017 : To help those manually filing their IT Returns , Income Tax Department has made necessary arrangements throughout their offices in India for receiving the returns till midnight today .
LAST DATE FOR FILING IT RETURN EXTENDED UP TO 5TH AUG 2017
Dated 31.07.2017 : The government to day extended the last date for filing IT Return for FY 2016-17 ( AY 2017-18 ) TO 5th August 2017 from 31.07.2017 . It has been extended due to unprecedented surge in number of persons filing it and keeping in view of tax payers convenience .
NEW MOBILE APPLICATION : AAYKAR SETHU
Dated 11.07.2017 : Income Tax department has launched a new Android based mobile application called AAYKAR SETHU which , on download , can be used for calculating and paying Income tax , viewing tax credit statement , file rectification of tax credit mismatch among other uses . It can be also used to locate a TRP at our place .
It has got many other utilities like valuation of perquisite values of medical facility , rent free accommodation , Transport allowance , children education and hostel allowance , house rent allowance . TDS Calculator etc . The application can also be used to link PAN with Aadhar and to verify PAN .
Thus with AAYKAR SETHU application , most of the works linked to Income Tax can be accomplished hassle free using your Android Mobile .
You can obtain the application by making a missed call to number 7306525252 and you will receive the link to application .
You can also download by clicking the link : https://tinyurl.com/y9zq72ej
BREAKING NEWS DATED 30.06.2017 :
It is reported that CBDT has clarified that PAN without AADHAR is valid till further notice . The department will provide a date in future from when the PAN without AADHAR will become invalid . Hence Public are advised not to panic
Source : News Paper reports
It is reported that CBDT has clarified that PAN without AADHAR is valid till further notice . The department will provide a date in future from when the PAN without AADHAR will become invalid . Hence Public are advised not to panic
Source : News Paper reports
FOR ALL NEWS ON THE TOPIC " LINK AADHAR TO PAN " CLICK HERE "
ONLINE PREPARATION AND FILING OF IT RETURNS ITR-1 AND ITR -4
Dated 16.06.2016 : If you are eligible to file IT Returns ITR 1 (SAHAJ )
or ITR 4 (SUGAM ) , you can now prepare and submit on line itself on the income tax e-filing website . There is no need of downloading forms , filling up and again uploading the forms . You can log in to their website at https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html and go to " PREPARE AND SUBMIT " Column directly , fill the forms there and submit . If you have to submit any other return , you may login , download the forms and submit by uploading the filled up forms .
For ITR Forms , CLICK HERE
ADVT
AMAZON india : SHOP for today's DEALS
Dated 10.04.2017 :
NO CASH TRANSACTIONS EXCEPT BANKING ABOVE RS TWO LAKHS
As per recent press release issued by Central Board of Direct taxes ( CBDT ) , No person shall receive an amount of Rupees two lakhs or more in aggregate from a person in a single day or in respect of single transaction or in respect of transactions arising from a single event or occasion other than by an account payee cheque or account payee bank draft or through use of electronic clearing system of a bank . In other words , cash transactions above Rs 2 lakhs are not permitted . Any contravention will attract penalty equivalent to transaction amount. For this purpose , new sub sections 269 ST & 271 DA have been added to Income Tax Act .
However Governments Departments , Banks , Co-operative societies and post Office savings bank accounts are exempted from the provisions of the above rule .
To read Press Release , CLICK HERE
Dated 10.04.2017 :
AADHAR NUMBERS TO BE LINKED WITH IT RETURNS FROM 01.07.2017
As per RECENT directive , quoting of Aadhar Number / Enrolment ID of Aadhar application is mandatory for filing IT Returns and for application for allotment Permanent Account Number ( PAN ) from 1st July , 2017 . However Non -Resident Indians ( NRI ) are exempted from quoting Aadhar Numbers , as per latest clarification given by Ministry of Finance .
For viewing the press release , CLICK HERE
NO CASH TRANSACTIONS EXCEPT BANKING ABOVE RS TWO LAKHS
As per recent press release issued by Central Board of Direct taxes ( CBDT ) , No person shall receive an amount of Rupees two lakhs or more in aggregate from a person in a single day or in respect of single transaction or in respect of transactions arising from a single event or occasion other than by an account payee cheque or account payee bank draft or through use of electronic clearing system of a bank . In other words , cash transactions above Rs 2 lakhs are not permitted . Any contravention will attract penalty equivalent to transaction amount. For this purpose , new sub sections 269 ST & 271 DA have been added to Income Tax Act .
However Governments Departments , Banks , Co-operative societies and post Office savings bank accounts are exempted from the provisions of the above rule .
To read Press Release , CLICK HERE
Dated 10.04.2017 :
AADHAR NUMBERS TO BE LINKED WITH IT RETURNS FROM 01.07.2017
As per RECENT directive , quoting of Aadhar Number / Enrolment ID of Aadhar application is mandatory for filing IT Returns and for application for allotment Permanent Account Number ( PAN ) from 1st July , 2017 . However Non -Resident Indians ( NRI ) are exempted from quoting Aadhar Numbers , as per latest clarification given by Ministry of Finance .
For viewing the press release , CLICK HERE
THIS ARTICLE CARRIES INFORMATION ON VARIOUS TAX PROVISIONS WHICH ARE GENERALLY USEFUL . YET IT DOES NOT CARRY ALL THE PROVISIONS AND HENCE YOU ARE ADVISED TO GO THROUGH INCOME TAX DEPARTMENT WEBSITES FOR AUTHENTIC COMPLETE INFORMATION , ESPECIALLY FOR THOSE WHO HAVE GOT MULTIPLE STREAMS OF INCOME OR COMPLEX INVESTMENTS . YOU MAY ALSO CONSULT A QUALIFIED TAX CONSULTANT / CHARTERED
ACCOUNTANT FOR ANY CLARIFICATION. READERS ARE ALSO WELCOME TO SEND FEEDBACK , FORM AVAILABLE BELOW . WE ARE OPEN FOR CORRECTION IF NEEDED
Income Tax returns can be filed on line . For further details visit IT RETURNS Page
For Tax on Retirement Benefits CLICK HERE
FOR AUTHENTIC INFORMATION AND TIPS ON INCOME TAX MATTERS
Income tax dept of Govt of India has a very useful portal which churns out valuable guidance for tax payers . One can go through and understand the basics .
Link to the portal is http://india.gov.in/spotlight/filing-income-tax-returns#itr2
Further there are practical tips for computing tax which can be read and used . For example , the link how to compute other income. One can make use of the portal in understanding law, making payment and also to file returns .
Link to the portal is http://india.gov.in/spotlight/filing-income-tax-returns#itr2
Further there are practical tips for computing tax which can be read and used . For example , the link how to compute other income. One can make use of the portal in understanding law, making payment and also to file returns .
