PM Modi unveils ‘fundamental reforms’ for taxpayers

PM Modi has launched taxation reforms. Faceless assessment, taxpayer charter starts from today, faceless appeal to begin from Sep 25. Stay tuned for live updates on latest news

Prime Minister Narendra Modi has launched a new platform, ‘Transparent Taxation Honouring the Honest’, aimed to carry forward the journey of direct tax reforms. The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws. Several initiatives have been taken by the Central Board of Direct Taxes (CBDT) to bring efficiency and transparency in the functioning of the Income Tax (IT) department, according to officials.

Stay tuned for the latest news of the day

Taxpayer must pay tax because that is how system works, says PM Modi

Taxpayer charter comes with responsibilities for taxpayers too. The taxpayer must pay tax because that is how the system works, says Prime Minister Narendra Modi…

Key highlights of PM Modi’s speech

Faceless assessment, faceless appeal and taxpayer charter part of new platform ‘Transparent Taxation – Honoring the Honest’

Policy-driven governance minimises grey areas, cutting discretion,

Faceless assessment, taxpayer charter starts from today, faceless appeal to begin from Sep 25

Fundamental reforms were needed in Indian tax systemEffort is to make tax system seamless,

painless and faceless

India among nations with lowest corporate tax

Read Full Story on Dundamental Reforms

Budget 2020: NRI tax to only impact India earnings, govt clarifies

The Union Budget had proposed on Saturday that NRIs have to pay up taxes on global earnings, if they’re not paying in any other jurisdiction or country, generating much debate

In what seemed like a partial rollback, the Finance Ministry on Sunday clarified that non-resident Indians (NRIs) would be liable to pay tax only on income derived from business or profession in India. The Union Budget had proposed on Saturday that NRIs had to pay up taxes on global earnings if they were not paying in any other jurisdiction or country, generating much debate. The ministry said it was an anti-abuse provision amid growing instances of NRIs shifting their stay in low or no-tax jurisdiction to avoid tax payment in India.

“An NRI living in another country earns money there, which is not taxed there at all, but has some earnings through something in India and does not pay tax here either because he does not live here. What we are saying is this: for the income generated in India, pay a tax. If you have a property here that generates rental income, but because you live there, you carry this income there and pay tax neither there nor here,’’ Finance Minister Nirmala Sitharaman said in a press briefing on Sunday.

“Have I got even a sovereign right to take that into my consideration or not? I am not taxing what you earn in Dubai,” she added. Adding to that narrative, the Central Board of Direct Taxes (CBDT) also put out a clarification on Sunday saying, “the new provision is not intended to include in tax net those Indian citizens who are bonafide workers in other countries.’’

It added that in some sections of the media, the new provision is being interpreted as one creating an impression that those Indians who are bonafide workers in other countries, including in West Asia, and who are not liable to pay tax in these countries, will be taxed in India on the income that they have earned there. “This interpretation is not correct,’’ CBDT said…Keep Reading

J&K loses special status: Google tax may be levied in new Union Territory

The equalisation levy was introduced in June 2016, but not through an amendment in the Income Tax Act despite being a form of direct tax

India’s version of Google tax, or the equalisation levy, may now be applicable in Jammu & Kashmir. With Parliament passing a Bill to revoke Article 370, digital commerce operators advertising on global social media, which earlier did not pay Google tax on their operations in Jammu & Kashmir, may now have to cough it up at 6 per cent.

According to people across companies, firms such as Facebook, Google, Amazon and Flipkart, among others, are all trying to figure out various tax implications of the government’s move.“We are assessing if we need to start paying additional taxes, and also if we have to change our accounting strategies. This will take a few weeks as the government has just made the announcements. We will get a better idea after we have a meeting with the tax department in Jammu & Kashmir,” said a senior management member at one of the biggest e-commerce firms.

Industry experts believe the equalisation levy is something that may be applicable to the region, but only after specific amendments are made. “Foreign e-commerce operators who pay the equalisation levy at 6 per cent, do not have to be pay such levy on their advertisements in J&K. This may change. However, specific amendments to the provisions will have to be made to make it effective,” said Indruj Rai, tax partner at Khaitan & Co.

ITR 2019-20: A simple step-by-step guide to filing your income-tax return

Good news is that the income-tax department has extended the last date for filing ITR from July 31 to August 31, 2019

Filing Income Tax Returns (ITR) can be a tedious task. Before filing ITR, you will need to create an e-filing account on the Income Tax website, incometaxindiaefiling.gov.in and register yourself. Registration will be completed after you click the activation link sent via e-mail and enter the provided one-time password (OTP) received on your mobile. Click on ‘Registered User’ if you have already registered yourself on the website.

Important note: The income-tax department has extended last date of filing ITR, which is now August 31.

Here’s a step-by-step guide to filing Income Tax Returns (ITR):

A. Keep essential documents with you

Collect documents such as Form 16, salary slips, and interest certificates and Form 26AS. Keeping them handy will help you compute your gross taxable income and will provide you with the details of tax deducted at source (TDS) from your income in 2018-19.

B. Get Form 26AS: You can download Form 26AS from the TRACES website. To download it, login to your account on the e-filing website, click on ‘My Account’ tab and select ‘View Form 26AS…

$30 billion wiped off stock in 3 sessions as doubts on higher tax lingers

The realisation that the new tax rate applies not just to the super rich but also to trusts – a structure of choice for a large number of foreign funds that invest in the nation

It’s an old saw of India’s spending archives – the fallen angel lies in subtleties of the fine print. A higher extra charge on well off Indians in the monetary allowance has scared non-inhabitant and abroad finances enough to delete Rs 2.3 trillion ($30 billion) in market an incentive from organizations in the S&P BSE Sensex in the course of the last three sessions.

The reason: the acknowledgment that the new duty rate applies to the overly rich as well as to trusts – a structure of decision for countless outside assets that put resources into the country. The proposition “appears to have incidentally” hauled outside portfolio financial specialists into the duty net and should be explained by the legislature, said KR Sekar, an accomplice at Deloitte Touche Tohmatsu India LLP.

Fund Minister Nirmala Sitharaman in her spending discourse Friday proposed to build the extra charge from 15 percent to 25 percent for those with assessable livelihoods of between Rs 20 million and Rs 50 million, and to 37 percent for those acquiring more than Rs 50 million. This takes the viable expense rate for those two gatherings to 39 percent and 42.74 percent, individually.

Worldwide and non-inhabitant speculators take part in India by means of non-corporate trusts and the supposed relationship of people or AOPs. Issue is, the structures are treated keeping pace with people for expense purposes. That has stirred worries about the toll being appropriate to outsiders when the country has developed as Asia’s greatest goal for value cash in 2019…

File your I-T return on time or you may end up in jail like this jeweller

It is mandatory for all registered taxpayers to file income tax returns every year, except for those who are over 80 years of age and do not have any source of income from a business or profession

Current Affairs: If you have received a notice for not filing income tax returns within due date, you might want to pay heed to it. In what could probably be the first such instance, a director of Mumbai-based firm Ms Shah Time and Jewels was sentenced to jail for three months on Wednesday for not filing income tax returns within the due date for the assessment year 2014-15, according to The Times of India.

When repeated notices sent to the firm and its director Paresh C Shah did not elicit any response, the deputy commissioner of Income Tax on November 22, 2017, filed a show cause notice seeking an explanation as to why sanction for their provision should not be given under the Income Tax Act. After that also went unanswered, a complaint was filed against Shah and the firm.

The Ballard Pier magistrate court rejected Shah’s defence of ‘lack of knowledge’ and held him and the firm guilty of deliberate non-compliance. The court observed that imprisonment under the Income Tax Act was an exceptional and extreme move and was given only when it established deliberate failure to file returns…

Filing Income Tax returns

It is mandatory for all registered taxpayers to file income tax returns every year, except for those who are over 80 years of age and do not have any source of income from a business or profession. For the year assessment year 2019-20, the last date of filing returns is July 31. You can pay it online as well uploading your Form 16.

Income Tax dept revises Form 16: Here’s all you need to know

The amended form will come into effect from May 12, 2019. This means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16

The Income Tax department has revised Form 16 by adding various details, including income from house property and remuneration received from other employers, thereby making it more comprehensive to help check tax avoidance. The amended form will come into effect from May 12, 2019. This means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16. Form 16 is a certificate issued by employers, giving details of employees’ TDS (tax deducted at source) usually by mid June and is used in filing I-T returns.

Here’s the revised Form 16

The move is aimed at stricter scrutiny of claims made by assessees to check tax avoidance or evasion. The Income-tax Act, 1961 requires every employer to issue a certificate giving details of salary along with the tax deducted at source (TDS) of each its employee in Form 16. 

It will also include segregated information regardingdeductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources. The I-T department has already notified income tax return forms for fiscal 2018-19. Salaried class and those who do not have to get their accounts audited, will have to file their ITRs by July 31 this year.

Meanwhile, the income tax department has also modified Form 24Q, which is furnished by employer to the tax department. It will include additional details like Permanent Account Number (PAN) of non-institutional entities from whom the employee has taken loan for buying or constructing housing property….

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No tax liability if your income is up to Rs 9.5 lakh, but conditions apply

Standard deduction has also been raised from Rs 40,000 to Rs 50,000, besides a host of tax benefits to home buyers

Budget 2019: Stressing that tax concessions have been provided with a view to help poor and middle-class people living on a tight budget, Finance Minister Piyush Goyal on Tuesday said that now individuals earning up to Rs 9.5 lakh can escape liability by taking advantage of saving schemes.

Replying to the debate on the Finance Bill in Lok Sabha, the Minister said he did not propose any change in the tax rate but only provided few rebates which will boost spending and help the economy. The Finance Bill, which contains tax proposals, was passed by the Lok Sabha with a voice vote, completing the budgetary process in the lower house.

In a swipe at the Congress, the Minister said that unlike the previous UPA dispensation, the present Modi government in the interim budget did not reduce levies of SUVs which are used by rich persons.In the Finance Bill 2019, the Minister proposed to raise tax rebate for people having annual income up to Rs 5 lakh from Rs 2,500 to Rs 12,500, which will effectively ensure that they don’t have to pay any tax. In the Bill, standard deduction has also been raised from Rs 40,000 to Rs 50,000, besides a host of tax benefits to home buyers….Read More

Explainer: What is an interim budget? What FM Jaitley can and cannot do

This will be the last Budget of the current BJP-led NDA government before the 2019 General Elections

Interim Budget 2019: With just a few months left before the Narendra Modi government formally completes its tenure, Finance Minister Arun Jaitley will present NDA regime’s first interim budget on February 1, 2019.

As this will be the ruling BJP government’s last budget before the upcoming Lok Sabha elections, here’s an explanation of what an interim budget actually means.

What is an interim budget?

An interim budget is presented by a government which is going through a transition period or is in its last year in office ahead of the general elections. Traditionally, an incumbent government cannot present a full-fledged Union Budget in the election year. Instead, the Finance Minister presents an interim budget during the joint sitting of Rajya Sabha and Lok Sabha in the Parliament, the livemint reported.

With an interim budget, the incumbent government seeks a vote of approval from the Parliament to draw money from the Consolidated Fund of India to meet its budget expenses before the end of the financial year, i.e; March 31st, 2019. It is a traditional practice which takes place in the run-up to every general election, according to an India Today report.

The full-fledged Union Budget is presented by the newly-elected government after Lok Sabha polls. In recent times, interim budgets have been instrumental for the incumbent governments to list out their achievements to draw voters’ support.

What can be done?

An interim budget is similar to a Union Budget. In interim-budget, the ruling government tables estimate of its expenditure, revenue, fiscal deficit and financial performance and projections for the upcoming financial year. The ruling government at the end of its tenure, presents an interim budget for three to four months so as to keep the country running unhampered. The likely focus of the incumbent government in the interim budget can be to outline its economic vision for the next five years if it may remain in power, said the livemint article…

Contain By: Business Standard

File your income tax returns and keep these dos and don'ts in mind

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

 

 

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

DOs

1. Organize

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

2. Check your calculation

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

DON’Ts

1. Make mistakes in details

During filing, you will be asked to fill in many details such as your bank details (account number, IFSC code, name as per bank records etc.), PAN number, postal address, and email id. Incorrect information can cause problems in your return being processed. You may also not be able to receive important communications from the tax department like refund cheque, error notices etc.

2. Forget to claim Section 80 deductions

The best way to reduce your tax liability is to use the deductions offered under Section 80 to their fullest. Even if you were not able to submit proof of investment to your employer earlier, you can still claim the deductions while filing the ITR, however keeping all proofs safely is very important, should the assessing officer ask for them later...READ MORE

Here is how you can save money, time and effort by paying presumptive tax

Opting for presumptive taxation helps professionals and freelancers show income on an estimated basis

 

With times evolving, a large part of today’s taxpayers works for itself rather than taking the conventional 9-to-5 job. It is common to see people quitting their comfortable jobs and becoming freelance professionals, consultants, doctors, interior decorators, etc.

India's tax laws have made it mandatory for individuals in professions like legal, medical, engineering, architectural, accountancy services, etc, to maintain books of accounts so that tax authorities can compute their total income. A freelancer who is into any of these professions would also be bound by this mandate. A freelancer might be relieved of this if she opts to go for presumptive taxation. Read on to understand the concept of presumptive taxation, the benefits of opting for the same and the conditions attached.

What is Presumptive Taxation?

Opting for presumptive taxation helps professionals and freelancers show income on an estimated basis. Further, they are not required to maintain detailed accounting records or spend time separating business expenses from personal ones.

This special scheme of reporting income is called the ‘presumptive scheme’. Presumptive means your income is assumed and actual numbers do not have to be reported. Tax is paid on the assumed income.

This scheme was earlier allowed for businesses; professionals could not opt for it. The benefits of the scheme lie in the ease and simplicity of return filing. It allows small taxpayers to focus on their work by reducing their compliance burden.

This scheme, brought into the statute vide Finance Act 2016 effective from April 1, 2016, allows professionals having gross receipts of up to Rs 5 million to file their returns declaring 50 per cent of their gross receipts (income before deducting expenses) as income. After giving effect to the deductions under section 80, tax must be paid on the balance amount.

Creative professionals eligible to opt for this scheme have been listed by the government -- architects, interior decorators, engineers, technical consultants or those in any other profession as notified by the board.

How to deal with receipts from outside India?

A resident Indian earning income in an Indian bank account from a foreign client

This is a confusion that creative professionals usually have. Whether the income they make from a foreign client is taxed in India or not? The answer is ‘YES’. As a resident of India for income tax purposes, your global income will be taxed in India.

A resident Indian earning income in a foreign bank account from a foreign client

Being a resident Indian, even if you receive income from a foreign client in your foreign bank account, it will be taxed in India. To sum up, for a resident of India, her global income would be taxable in India. However, she can take recourse to the provisions of the Double Taxation Avoidance Agreements (DTAA) that India has entered into with various countries to ensure her income does not get taxed twice. Therefore, if she is offering to tax in India her foreign income which has already been taxed in another country, she can claim the credit for such tax paid abroad against her tax liability in India.

What are the Benefits of presumptive taxation?

1.Easy to file: The tax form is shorter and simpler as compared to the complex 30 pages ITR form. For presumptive taxation ITR 4 is filed.

2.Save money: Professionals can now file tax returns on their own instead of paying a tax consultant. Typically, consultants charge anywhere from Rs 5,000 to Rs 15,000 for such filings.

3.Save tax: Usually, professionals do not have many expenses to declare. By declaring 50 per cent of the income as profit and the rest as expenses, a lot of tax saving can be done.

4.No books of accounts: Freelancers who opt for the presumptive scheme are not required to maintain books of accounts.

For an enhanced understanding of Presumptive Taxation, let us take an example:

Shweta is an interior decorator. She earned an income of Rs 4 million in 2017-18 -- that is, between April 1, 2017, and March 31, 2018. That is a lot of money, but it also leads to a lot of tax. In the normal course of things, without using the benefit of presumptive tax, Shweta’s taxable income (the amount she would need to pay tax on) would be something like this.

Article Source: Business Standard

Missed the ITR deadline? Here's what you need to do next

Filing returns after the due date can have repercussions even if there are no pending liabilities

Filing income tax (I-T) returns on time is every taxpayer’s responsibility and there are several benefits extended to the individual for the same. On the other hand, filing returns after the due date can have repercussions for the taxpayer even if there are no pending tax liabilities. However, if you have missed the deadline, you can file a belated return.

What is a belated return?

A belated I-T return can be filed after the due date but before the end of the assessment year. Belated returns have to be filed within one year from the end of the relevant financial year. Hence, if you need to file your return for financial year 2015-16, the assessment year will be 2016-17 and the belated return can be filed by March 31, 2017. Similarly, if you must file your return for financial year 2016-17, you must do so by March 31, 2018 — the end of assessment year 2017-18.
The procedure to file a belated return is the same as filing the return within the due date. Log into your e-filing account on the I-T department’s website, select the applicable ITR form and assessment year, and proceed. For example, if you are filing the return for financial year 2015-16, select assessment year 2016-17.

Economy news 

Consequences of filing late returns

Missing the deadline or delay in payment of dues against past tax liabilities can lead to:

• Penalties and interests: In the case of an unpaid tax amount, the assessee is charged a penal interest under Section 234A and 234B per month till the liability is paid off. After the deadline, a further interest of one per cent per month will have to be paid under Section 234C as well.

• Interest on refunds: Under a provision in the Income Tax Act, an individual is eligible to receive an interest on the excess tax they have paid from April 1 of the assessment year till the date the amount is refunded to the taxpayer. However, after the due date, the assessee will be paid interest on TDS after August 1. This means that you will lose out the interest accrued from April to July.

• No carrying forward of losses: Individuals can carry forward capital losses up to eight subsequent assessment years to be set off against future capital gains arising in the following years. However, if the income tax return is not filed by the due date, taxpayers will not be allowed to carry forward any losses.

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

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

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

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

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

Addressing tax officers at the Income Tax Day event here, he said that tax rates have to become more reasonable but for that to happen, the tax base has to be widened by including more people in the net.

"These days we are finding political leaders also resorted to (benami dealings)," he said, without naming anyone. "Therefore (we are) unearthing them."

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

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

Raids were conducted in recent weeks at various places including Delhi and Haryana over alleged Rs 1,000 crore benami land deals involving the RJD chief and his family.

Jaitley said that the situation where the compliant tax payer has to actually pay twice over -- once his own share of taxes and the second time a higher share to compensate the non-compliant, cannot be allowed.

"Our vision is: we will use technology, we will ensure that our procedure is simple, we will ensure that there is almost negligent interface between (tax) department and assessee, (and) we would like our rates to become even more reasonable, but to enable us to that we need to expand our base," he said.

People should voluntarily made disclosures and come within the tax net, he said.

India, on the one hand, boasts of being the fastest growing major economy in the world but on the other hand lacks in some of the essential expenditure, he said.

"A more empowered country will need to be a country which is empowered by honest and compliant taxpayers. The faster we can do it, the greater it will be in the larger interest of the country," he said. 

(READ MORE)

 

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

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

Let’s be honest, if given a choice, none of us would like to pay tax on the income we earn. But we have to and we should, because income tax is an important source of revenue for the government. This revenue is used by the government to build the nation. India is a developing nation and very few Indians earn an income that can be taxed. This is why if you’re one of those who earn a taxable income, you should proudly and honestly pay income tax.(economy policy)

But having said that, there are certain ways by which you can legally reduce your taxable income that you should make use of. The government allows for certain tax-saving deductions that you can use to lower your taxable income. You can effectively use these deductions to pay less tax. The following table lists common tax-saving deductions and their limits.

Section	Deduction on	FY 2016-17
Section 80C	Investment in PPF Employee’s share of PF contribution NSCs Life Insurance Premium payment Children’s Tuition Fee Principal Repayment of home loan NPS Investment in Sukanya Samridhi Account ULIPS ELSS Sum paid to purchase deferred annuity Five-year deposit scheme Senior Citizens savings scheme Subscription to notified securities/notified deposits scheme Contribution to notified Pension Fund set up by Mutual Fund or UTI Subscription to Home Loan Account Scheme of the National Housing Bank Subscription to deposit scheme of a public sector or company engaged in providing housing finance Contribution to notified annuity Plan of LIC Subscription to equity shares/ debentures of an approved eligible issue Subscription to notified bonds of NABARD	Rs. 1,50,000
80CCD(1B)	Additional contribution to NPS	Rs. 50,000
80TTA(1)	Interest Income from Savings account	Maximum up to 10,000
80GG	For rent paid when HRA is not received from employer	Least of rent paid minus 10% of total income Rs. 5000/- per month 25% of total income
80E	Interest on education loan	Interest paid for a period of 8 years
80EE	Interest on home loan for first-time homeowners	Rs 50,000
80D	Medical Insurance – Self, spouse, children Medical Insurance – Parents more than 60 years old	Rs. 25,000 Rs. 30,000
80DD	Medical treatment for handicapped dependant or payment to specified scheme for maintenance of handicapped dependant Disability is 40% or more but less than 80% Disability is 80% or more	Rs. 75,000 Rs. 1,25,000
80DDB	Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD For less than 60 years old For more than 60 years old For more than 80 years old	Lower of Rs 40,000 or the amount actually paid Lower of Rs 60,000 or the amount actually paid Lower of Rs 80,000 or the amount actually paid

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

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

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

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

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

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

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

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

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

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

The amended rules will come into effect from July 19, 2017 and will apply for assessment year 2017-18 for which the returns would be filed in the coming months.

Nangia & Co Associate Director Shalu Kedia said the notification mandates "enhanced reporting" as disclosure now needs to be given with bifurcation into -- all transactions, cheque, bank draft transactions, and cheque and bank draft transactions which are not account payee.

Before amendment, the disclosure requirement was to report whether or not transactions are through account payee cheque or bank draft, she said.

"By doing this, the tax department has ensured greater transparency in modes of transaction," Kedia said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Insulin, cashews, pickles to get cheaper: GST Council reduces rates of 66 products

Telecom rates unchanged; meeting on June 18 to discuss residual issues

With two weeks to go for the goods and services tax (GST) roll-out, the GST Council on Sunday reduced the rates for 66 items and expanded the scope of the composition scheme for the benefit of small traders, manufacturers, and restaurateurs. The composition scheme is a presumptive taxation scheme allowing small traders, manufacturers and restaurants to pay a 1-5 per cent GST rate on sales without tax credits.

Insulin, pickles, printers, agarbattis, school bags, and cashew nuts are among the 66. Those were among 133 items whose rates were reviewed following industry representation. However, the GST rates for telecom services, marbles, granite, spectacles, among others, were retained, which drew flak from the respective sectors.

Union Finance Minister Arun Jaitley, who is the head of the Council, said in certain cases the rate fitment committee went beyond the equalisation principle of maintaining the current tax incidence.|Economy news

“There are certain items that were historically taxed at a higher rate, but the Council felt that the burden needed to be reduced,” said Jaitley. The finance minister said the average of all the rates decided by the Council was significantly lower than the present tax incidence.

On the question about any further revision of rates, he said the fitment committee and the GST Council had gone into all the cases in depth and the rates had been decided after discussion.

“These broadly are the final rates... Just because somebody raising an issue does not mean you have to grant it,” he said.

On the automakers’ pitch for a lower rate for hybrid cars, Jaitley said the facts presented by the industry were not correct. “If necessary, it will come up for discussion,” Jaitley said.

The current level of tax on hybrid cars stands at 30.3 per cent, as against 43 per cent (28 per cent plus 15 per cent cess) decided by the Council.

Providing relief to small entities under the GST, the composition scheme has now been expanded to traders, manufacturers, and restaurants with an annual turnover of Rs 75 lakh as against Rs 50 lakh decided earlier.

 (read more....)

 

 

Filing I-T returns: Single-page form for income up to Rs 50 lakh

Only for salaried; Jaitley's earlier promise was for annual income up to Rs 5 lakh

 

#LATEST | To encourage more individuals to file returns and widen the tax net, the government is set to introduce a single-page income tax (I-T) return form from April 1.

This will be for those with annual salaried income up to Rs 50 lakh, much higher than Rs 5-lakh limit proposed in the Union Budget, Revenue Secretary Hasmukh Adhia told Business Standard.

He added this would only be for those with salaried and one house rent income.

There are 290 million PAN card holders (the I-T dept identification) but only 60 mn return filers.

Currently, the I-T form is three pages. It was simplified two years ago, when a controversial provision for mandatory disclosure of foreign trips and dormant bank accounts was removed.

“To expand the tax net, I also plan to have a simple one-page form to be filed as I-T Return for the category of individuals having taxable income up to Rs 5 lakh, other than business income,” Finance Minister Arun Jaitley had announced in the 2017-18 Budget.

Of the 7.6 million individual assessees who declare annual income above Rs 5 lakh, 5.6 mn are in the salaried class.

For those with annual income of over Rs 50 lakh and up to Rs 1 crore, a surcharge of 10 per cent will be imposed; 15 per cent for those over Rs 1 crore. The surcharge is estimated to generate additional revenue of Rs 2,500 crore.

Taxing Matters

• 10% surcharge for those with income above Rs 50 lakh and up to Rs 1 crore
  
• 15% surcharge for those with income above Rs 1 crore
  
• Rs 2,500 crore additional revenue from the surcharge
  
• Rs 10,000 fine for those who do not file their Income Tax Returns (ITRs) on time, from 2018-19 assessment year| (READ MORE)