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New-ITR-forms-17-18_Full

New requirements in ITR forms for AY 2018-19

New requirements in ITR

1. Additional disclosure requirements for Ind AS Compliant Companies.
2. Fees for late filing of return [Section 234F].
3. There is a requirement to furnish a break-up of salary. Require more details of house property income.
4. Additional details to be furnished by taxpayers opting for presumptive scheme such as amount of secured/unsecured loans, advances, fixed assets, capital account etc.
Further, new ITR 4 seeks GSTR no. of the assessee and turnover as per GST return filed by him.
5. Transfer of TDS Credit to Other Person.
6. Capital Gains in case of transfer of unquoted … Read more

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Tax changes effective from 1 April 2018 (FY 2018-19)

Tax Changes effective from 1 April 2018 (FY 2018-19)

  • Penalty on late filing of ITR upto Rs.10,000
  • Reduction in time limit to revise ITR, to be done in same assessment year
  • No ITR can be filed after the assessment year
  • Transport allowance and medical reimbursement to employees are taxable
  • Standard deduction of Rs. 40,000 to salaried assesses
  • Hike in cess from 3% to 4%
  • Levy of Long Term Capital Gain Tax (LTCG) on shares and equity mutual funds
  • Senior citizens (above 60 years) interest income exempted to Rs.50,000. TDS on interest for senior citizen will be deducted only if interest
Read more
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Income Tax Notices: How to avoid them?

Paying taxes and filing tax returns go hand in hand. There has been an increase in the number of tax notices sent by authorities in the recent years. The rise is not necessarily due to lack of paying taxes or filing returns, but because the tax authorities are now equipped with an integrated database on taxpayers which allows them to track almost all financial transactions.

Third Parties like Bank, Mutual Fund companies, companies issuing shares, bonds, debentures and real-estate related sub-registrar offices report high value financial transactions to the IT department through the Annual Information Return (AIR).

The 10-digit PAN, … Read more

TAX HIGHLIGHTS FROM THE UNION BUDGET 2018-19

Tax highlights from the Union Budget 2018-19

The Union budget was presented to the Parliament on 1 February 2018 by the Finance Minister Arun Jaitley. It was highly anticipated, since it was the first budget after the implementation of Goods and Service Tax (GST) in India. The budget included the annual financial statement and the finance bill of India for the financial year 2018-19.

Taxation Highlights 

  • Direct Tax Collections for FY 2017-18 are at Rs 6.56 lakh, which shows a growth of 18.2% up to December, 2017. As many as 85.51 lakh new taxpayers filed their tax returns in 2016-17, as against 66.26 lakhs in 2015-16.
Read more
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Avoid these common mistakes in income tax, keep tax notice at bay

In recent months, the tax department has stepped up efforts to ensure tax compliance. New rules have been introduced to plug tax leaks and officials are cracking down on evasion. Tax records are being put under the scanner and notices are being sent to individuals if the computer-aided selection system notices a discrepancy. Thousands of taxpayers have already received tax notices.

A notice from income tax department is a reason for taxpayer’s worry. There are few common mistakes which invites a call from income tax department. Thus, knowing these mistakes could help you avoid income tax notices.

  1. Not reporting interest
Read more
Transfer Pricing

Domestic transfer pricing

Introduction

domestic

Applicability of Transfer Pricing (“TP”) provisions was earlier limited to International Transactions only. With effect from April 1, 2013, the scope of Transfer Pricing provisions extended to “Specified Domestic Transactions (“SDT”).

With the applicability of transfer pricing provisions on Specified Domestic Transactions, it is the obligation on the taxpayer to report / document and substantiates the arm’s length nature of such transaction.

Transfer pricing regulations were extended to include transactions entered into with domestic parties or by an undertaking with other undertakings of the same entity for the … Read more

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Power of attorney

What Is Power Of Attorney?

A Power of Attorney is a legal document by which one person gives the right to perform or powers of transacting in matters relating to property, banking, legal and judicial proceedings, tax payments, etc, to another person due to certain reasons like being out of country, or getting old, or not able to look after one’s duties in those matters etc.

Principal/Grantor/Donor- The person who grants the power to the other person to act on his behalf is termed the grantor or principal or donor.

Attorney/Agent/Donee- The person to whom the power is granted is … Read more

transfer pricing law in India

Transfer pricing law in India

Introduction

Transfer Pricing (“TP”) regulations have been at the forefront of corporate headlines over the last few years due to the increasing number of controversies resulting out of tax structuring by multinational companies in India. What makes the topic both contentious and interesting is that regulators view the various techniques applied to inter-corporate transactions as purportedly planned with the intent of achieving benefits of comparable labor cost and tax advantage at the cost of a countries tax revenues.

Hence, there was a need to introduce a uniform and internationally accepted mechanism of determining reasonable, fair and equitable profits and tax … Read more

23rd GST Council Meeting

Lates changes in GST 23rd council meeting

In the 23rd GST Council Meeting, GST rate reduction for various goods and services was announced. A major highlight of the 23rd GST Council Meeting was the reduction of GST rates for various goods listed under the 28% slab. The GST rates changes will tremendously reduce the tax burden on the common man and boost the economy. In this article, we look at a summary of GST rate changes announced in the 23rd GST Council Meeting held on 10th November 2017.

Highlights of the 23rd GST Council Meeting

The goods and services on the 28% slab list were severely … Read more

tas adviser in india

Tax Planning With Mutual Funds

Mutual fund is an investment programme funded by shareholders that trades in diversified holdings and is professionally managed.Your Fixed Deposit may be offering decent returns with little option for liquidity, while the stock market may give you decent returns with easy liquidity and slightly higher probability of losses. A Mutual Fund is a fine balance between the two offering you good returns while providing you with decent liquidity.

Tax saving mutual fund schemes or ELSS (Equity Linked Savings Schemes) are one of the best tax-saving option available under Section 80C, qualifying for up to Rs.1.5 Lakh of income tax deductions. … Read more

Tax adviser in India

Income tax Rectification

There has been a change in the way Income Tax Department (ITD) is processing the income tax returns (ITR) for financial year 2016-17.

This has led to Intimation u/s 143(1)(a) being issued to a lot of taxpayers with even the slightest discrepancy in their return.

How returns were processed till 2016:
Only tax details declared in your ITR were matched with the tax details available in your Form 26AS.

How returns are being processed in 2017:
Now all details declared in your ITR w.r.t. Income (gross total income, taxable income, other income like interest income, etc.) / Deductions / TDS, … Read more

Tax-Return

Efiling of Income Tax Return

What is a income tax return ?

It is a prescribed form through which the particulars of income earned by a person through various sources(like salary, business, professional fees, interest, capital gains, etc.) in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the Financial year, called as income tax return or ITR. It is like your report card in school but instead of  marks you have income and taxes.  It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly. Different … Read more

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Online Services May Face Google Tax

The digital space has grown rapidly in the past few years and is expected to grow substantially in next few years too. The biggest beneficiaries of this rapid growth in the digital space are companies earning through digital ads like Google,Facebook,Twitter,LinkedIn etc.

Moreover, these companies are located outside India, and hence they are not even subject to any taxes in India. These new business models have created new tax challenges by challenging the current manner of levy of tax which are based on the presence based on permanent establishment rules..
The ‘Google Tax’ or ‘Facebook Tax’ which was first … Read more

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VAT Registration in India

Value Added Tax or VAT is a mandatory requirement for all kinds of business. Proprietorships, partnerships, private limited companies, manufacturing firms and even traders of any kind of products need VAT registration. VAT is similar to Central Service Tax (CST) and Taxpayer Identification Number (TIN). They use the same 11 digit number.
What is VAT?
VAT is an indirect tax levied on goods and services when they are sold to the ultimate customer. VAT is paid by the producers to the government. The producers then collect the tax amount from the consumer, by adding it to the price.
A registered … Read more

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Direct Indirect Tax Difference

A tax is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or administrative division. Failure to pay tax is punishable by law.Tax is not a voluntary payment or donation.It is a contribution imposed by government, state or administrative division to enable them to meet the expenses.

So if anybody earns an income, he should share a portion of the same with the government. In India, taxes are divided in Direct Indirect Tax.

The way in which taxes are imposed, decides whether the tax is direct or indirect.

If a … Read more

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Online Income Tax Payment – Procedure

Income tax payment can be done through online or manually by furnishing the hard copy of the challan at the designated bank. The Government has upgraded itself and introduced e-payment facility for income tax. In this Blog, we look at the procedure for online payment of income tax.

Mandatory Online Payment
Private limited company, one person company and limited company are mandatorily required to pay tax using internet banking facility. Further, taxpayers other than company who are liable to get their accounts audited as per section 44AB are also required to mandatorily pay income tax online.

Online income tax payment … Read more

How change in Service Tax rate should be tackled

As per the new notification dated May 19, 2015 vide D.O.F. no. 334/5/2015-TRU from service tax department, new service tax rate @14% is to be charged from the clients.

For this purpose, there are three following aspects to consider:

1.      Date of receipt of amount against the services provided or to be provided.

2.      Date of provision of services.

3.      Date of Invoice.

For any invoice to be raised or amount received after June 01, 2015, please note that if any two of the above three fall before May 31st 2015, then service tax rate will be @12.36% else it … Read more

Recovery Of Service Tax Without SCN

Amendments made by Finance Bill, 2015 (w.e.f. enactment date)

Finance Bill, 2015 has made the following two changes in the provision of section 73 -

New sub-section (1A) enabling recovery of self assessed and returned u/s 70 Service Tax payable but not so paid, as per section 87 of the Finance Act, 1994; and

Omission of sub-section (4A) which provided for non-issuance of Show Cause Notice (SCN) where true and complete details of non-payment / short payment of Service Tax / erroneously refund is available in specified records and pays Service Tax along with interest and 25 percent of penalty … Read more

CBDT notification – Changes in ITR 1, ITR 2, ITR 4S for A.Y.2015-16

CBDT has vide Notification No. 41/2015 Dated 15.04.2015 notified Form ITR-1, ITR-2 and ITR-4S for Assessment Year 2015-16 i.e Financial Year 2014-15. The Notification also made Several Change in Rule 12 of Income Tax Rules, 1962 which is related to Condition of Filing of Income Tax Return.  A brief summary of Changes is as follows :-

General

1) ITR-1 (SAHAJ) & ITR-4S (Sugam) cannot be filed by individual who has earned any income from source outside India.

2) Introduction of EVC for verification of return of income filed as an option to send ITR-V to CPC, Bangalore.

3) Super Senior … Read more

Analysis of L&T – Service Tax – Impact on Valuation of WCT in residential apartments

Construction Service / Works Contract- Residential Apartments Impact of Larsen & Toubro [ K.Raheja] Judgment.

                                                                                    – Madhukar N Hiregange

Commercial tax is a largest[maximum] contributor of revenue to every State. There were attempts in late 1990s and later by Sales Tax authorities to cover works contract under tax. However in several disputes, it was held that there was no sale and therefore not taxable.

States were keen to get the huge revenue from this sector [ presently about 10% of the GDP of India] into taxation. The Government by way of the 46th amendment to the Constitution of India inserted … Read more