GST ISSUE ADVISORY ON BANK ACCOUNT VALIDATION

Many of us and our clients are receiving Bank validation mails and messages from Goods and Service Tax Department in past few days. These mail usually contains errors in Bank Account Validation which includes Account closure, Account PAN not linked, Wrong name in Bank Account etc.

On 24.04.2023 GSTN has issued advisory for the Taxpayers which says:

" GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct. The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account"

Link to full text is given below:

https://www.gst.gov.in/newsandupdates/read/579

As we are aware that linking of Bank Account is mandatory at GSTN and non linking can result in Suspension as well Cancellation of GST Registration. Readers are advised to kindly check the Bank Account linkage at their respective GSTN Login.

ITR 1 to ITR 4 for AY 2023-2024

 Income tax has today on 25.04.2023 has started e-filing of  ITR 1 to ITR 4 for AY 2023-2024. The much awaited release of schema was made on 11.04.2023 but e-filing of same was not started till today.

The taxpayers can login into Income Tax E-filing website and can upload their returns JSON file generated either through software provided by third parties or from Excel utility released by Income Tax.

Other Income Tax forms from ITR5 to ITR7 will be released shortly.

Last date for filing of return for Non-Audit taxpayers is 31st July, 2023. In case of delay in filing returns Late fees of Rs. 1000 to Rs. 10000 is leviable.

Link to relevant news of Income Tax Department is given below:

https://www.incometax.gov.in/iec/foportal//latest-news#206a6550-3d84-4d79-ba9a-ff5d34181d94

INCOME TAX RELIEF UNDER ECONOMIC PACKAGE PART -1 (COVID 19 ECONOMIC PACKAGE)

Everything You Need to Know about The Income Tax Declaration Scheme, 2016

Everything You Need to Know about

The Income Tax Declaration Scheme, 2016

The Income Tax Declaration Scheme, as the name suggest is disclosure of Income which has escaped assessment under Income Tax Laws. The Scheme defines the criteria of Income to be termed as Undisclosed, manner of its disclosure and Tax thereon. Before we start detailed analysis of the scheme it is important to know the reasons for bringing such a scheme for the citizens of India.

No Extention of Due Date for E filing Tax Audit Reports and Income Tax Returns

Since the last date for filing Income Tax return is finally over, all the Tax Practitioners  has started Efiling the Tax Audit Report and Income Tax returns of Audited as well as company form of Tax Payers. Rumors has already been running nation wide that Last date of filing Income Tax Returns for these Tax Payers will increase to 31st October or 30th November. Due to which many Income Tax payers who are required to get Tax Audit done can be seen relaxing. But today Ministry of Finance has issued some bad news for them.  Ministry of Finance has recently issued Press Release in which it has clearly mentioned that:

"No Extension of Date for Filing of Returns due by 30th September for Assessment Year 2015-16 for Certain Categories of Assessees Including Companies, and Firms and, Individuals Engaged in Proprietary Business/Profession etc whose Accounts are required to be Audited; Taxpayers are Advised to file their Returns Well in Time to Avoid Last Minute Rush "

Income Tax Return Filing Dates Extended to 7th September (All Taxpayers)

Last date for filing Income Tax Return for AY 2015-2016 was extended earlier to 31st August from 31st July 2015. After the end of due date CBDT has been receiving a lot of representations from various groups regarding hardships faced in filing of Income Tax Returns. The dates were Increased for Gujarat recently but nothing was done for Other states taxpayers. After a lot of representations CBDT has finally increased the due date for filing the Income Tax Returns for AY 2015-2016 to 7th September, 2015.

Efiling of ITR 6 and ITR 7 is Enabled

Income Tax Department has recently notified ITR Forms for AY 2015-2016 for filing manually to Income Tax Department. Department has also issued Utility for Efiling of these ITR1, ITR2, ITR3, ITR4, ITR4S and ITR5 till now and same has also been enabled at Income Tax Website for Efiling. To read our Updates regarding these forms please click on below mentioned links:

• Efiling of ITR 3, ITR 4 and ITR 7 Now Available
• Income Tax AY 2015-2016- ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 notified
• Efiling ITR-2 and ITR 2-A now Available
• Efiling of ITR 1 and ITR 4S AY 2015-2016 now Available

10 Changes in Income Tax Return Forms for the Assessment Year 2015-2016

Recently Income Tax Department has issued new ITR forms for Assessment Year 2015-2016. These new forms are also available at efiling portal for Efiling Income Tax Returns. As the last dates for filing these forms are coming close, we have come with our Another list- 10 Changes in Income Tax Return for the Assessment Year 2015-2016.

Most of us rely on Income Tax Return preparation Softwares to Efile Income Tax Returns. We feed the details and software provide us with the Computation, missing data and errors in our XML file and we finalize our Income Tax Return. But have we ever wondered, if the rules used by the software companies are not correct. What will happen then? The answer is coming to us regularly these days in the form of Notice of Defective returns under section 139(9) or wrong processing of the returns under section 143(1). To save oneself and clients we should always look the manual copy of return before efiling it and also try to read the XML file (if possible). Here we are giving 10 things that has changed in ITR this assessment year and we should check it before filing the Income Tax Returns.

Steps to Link Income Tax Efiling with Adhaar for E-Verification of Return

As we all are aware that from this year onwards E-Verification of Return has been started by the Income Tax Department which will enable ITR V free Income Tax Return Filing. This will help in Efiling Income Tax Return without sending the ITR V to CPC Bangalore. Income Tax Department has started EVC filing and has also laid down the steps to be followed by an assessee to file ITR V free Income Tax Returns.

Below are the three ways through which the Income Tax Return can be filed:

1 e-Verification while uploading a return (Non -NetBanking) 

2 e-Verification of an already uploaded return (Non -NetBanking)

3 e-Verification while uploading a return through NetBanking Login

Digitally Signing of Invoices Service Tax and Excise

In today's era of digitization, more and more Small and Medium Enterprises are moving Online. There are more use of Computers, internet, ERP Softwares, Online Billing etc. than it was before. Businessmen are using all sorts of new technologies which will save their time and efforts, one of such technology is of Online Invoice printing and signing. Many of the software provider are  providing these facilities and it saves a lot of time especially of those enterprises where there are more than hundreds of billing everyday. Use of Digital signature is gaining a lot of popularity and as the people are getting educated about the advantages of the system, they are getting inclined towards it.

 Digital signature certificates comes in 3 classes i.e. Class I, Class II and Class III. The Information Technology Act has made the DSC signing at par with manual signing. Income Tax, Sales Tax, Company Law, all are making Digital Signing mandatory and so the Central Board of Excise and customs. Central Board of Excise and Customs with its latest Notification No. No.  18/2015-Central Excise (N.T.) has issued procedure and safeguards to be followed if the Tax payer wants to issue invoices in Digital form with Digital Signature.

Now a Taxpayer can Digitally sign the Invoices issued to there clients and customers. The salient features and procedure for getting the assesse power of Digital Signing is given below:

All You need to know about Black Money Disclosure Scheme

During the presentation of Union Budget 2015-2016, Finance Minister Shri Arun Jaitely Ji, has announced the scheme of rigorous taxes and penalties on those who have Foreign Undisclosed Income and Assets. An act was made to provide the scope, taxation and penalties on Black money in Foreign. The Act was given assent by the President on 26th May, 2015 and is called BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015.

How to Claim Income Tax Refund of Earlier Years

In India, most of us still file Income Tax Returns just to claim refunds of Taxes which are deducted by the payer of our Income i.e. Banks, Governments, Insurance Companies etc or taxes paid extra by us either at the time of Self Assessment or Advance. These taxes are refunded after filing of Income Tax returns.Now most of us even being well educated forget to file the Income Tax return or we don't have knowledge of the process to get the Income Tax refund. Many of the cases are still pending and there are a lot of persons who have refund of Lakhs of rupees but are not being able to get the refund due to non filing of Income Tax returns.

Circular of Condonation of Delay in Filing Claim of Refund

SECTION 119 OF THE INCOME-TAX ACT, 1961 - INCOME-TAX AUTHORITIES - INSTRUCTIONS TO SUBORDINATE AUTHORITIES - CONDONATION OF DELAY IN FILING REFUND CLAIM AND CLAIM OF CARRY FORWARD LOSSES UNDER SECTION 119(2)(b)

CIRCULAR 9/2015 [F.NO.312/22/2015-OT], DATED 9-6-2015

In supersession of all earlier Instructions/Circulars/Guidelines issued by the Central Board of Direct Taxes (the Board) from time to time to deal with the applications for condonation of delay in filing returns claiming refund and returns claiming carry forward of loss and set-off thereof under section 119(2)(b) of the Income-tax Act, (the Act) the present Circular is being issued containing comprehensive guidelines on the conditions for condonation and the procedure to be followed for deciding such matters.

Efiling ITR-2 and ITR 2-A now Available

We have recently provided the news that Efiling of ITR-1 and ITR-4S for the AY 2015-2016 has been started by the Income Tax Department, those who have missed the update can read it from following link: http://www.casamachar.com/2015/06/efiling-of-income-tax-return-for-ay.html.

10 Benefits of Efiling Income Tax Returns

Income Tax Efiling is a very common term during this part of the year i.e. June-July, after the months of Feb-March or September. Many of us always had a question as to what is Income Tax Efiling and why are we hearing the word Efiling Income Tax more and more these days. In a laymans terms Income Tax Efiling is nothing but Electronic filing of Income Tax returns which are filed every year. As most of us know that Income Tax returns are to be mandatory filed by all the persons having total income exceeding the income not chargeable to tax.(Sec 139 of Income Tax Act, 1961).

Service Tax to remain 12.36% till Notified Date is announced

With the Presidents assent on Finance Act, 2015 on 14th May 2015, various Service Providers have started charging 14% Service Tax. We would like to bring this to notice of our readers that the rate will remain 12.36% till the date declared in the notification.

The relevant portion of Finance Act, 2015 is given below:

In section 66B of the 1994 Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for the words “twelve per cent.”, the words fourteen per cent.” shall be substituted.

The notification will be available soon and till then rates of 12.36% is to be charged and not 14%. Also the Swach Bharat cess of 2% is to be charged only after the date notified and not from 14th May, 2015.

Service Tax Rate will remain 12.36%

As we all are aware that in the Budget 2015, Finance Minister Shri Arun Jaitely Ji have announced the increase in rate of Service Tax from 12.36% to 14%. There is news all around that from 1st April all the Services will become costly. But in reality nothing will be costly now but after enactment of Finance Bill, 2015.

Yes, you read it correct. There will be no hike in rate of Service Tax from Today but it will be increased only after enactment of Service Tax Act. In this regard relevant portion of D.O.F. No.334/5/2015-TRU dated 28th February 2015 is produced below:

“3.3 The Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015”.

Tax Amendments Proposed in Union Budget 2015-2016

Honorable Finance Minster Shri Arun Jately Ji, has given his Union Budgetary speech today for the budget of the year 2015-2016. You can get full Summarised updates from following link:
http://www.ngoandtaxconsultant.in/2015/02/unionbudget2015-2016.html


We are giving a comprehensive list of Amendments in Direct and Indirect Taxes proposed for the year 2015-2016.

DIRECT TAX

1. No Changes in Tax Slabs for Individual Assesses. Maximum no taxable income will be Rs. 444,200.00

2. Wealth Tax to be abolished.

3. To make up for loss due to removal of Wealth Tax. A special surcharge of 2 % on Super Rich is to be levied (Income above Rs. 1 crore).

4. Assets to be specified in Wealth Tax Return, is now to be specified in Income Tax return.

5. Corporate Tax to be reduced to 25% from earlier 30%. All the exemptions to be rationalized and removed in phase manner.

6. Exemption on Transport Allowances for Salaried class to be increased from Rs. 800 to Rs. 1600.

7. Deduction for health premium under section 80D to be increased from Rs. 15000 to Rs. 25000 and for senior citizen to Rs. 30000. For Super Senior Citizen the expenses upto Rs. 30000 will be allowed as deduction on medical expenses

8. Pension fund and New Pension fund deduction to be increased from Rs. 1.00 lakhs to Rs. 1.50 lakhs.

9. In case of serious diseases, the deduction of Rs. 60000 is raised to Rs. 80000

10. Income tax on Royalty for Technical Services reduced to 10%

11. 100% deduction on contirbution to Swach Bharat Abhiyaan and Clean Ganga Mission

12. Quoting of PAN number made necessary for purchase above Rs. 1.00 lakhs

13. Cash disallowance for purchase above Rs. 20000 of immovable property.

14. Rs. 50000 deduction under section 80CCD

15.Yoga to be charitable activity under Income Tax Act.

16. No DTC as Income Tax Act, has been modified to include most of the provision of DTC

17. GAAR will be defered by 2 years.

18. Manager of Off Shore Fund can open offices in India and laws will be ammended to provide them exemption as if they are not working from India.

19. Deduction under section 80U to be increased.

20. New Law on Black money to be intoduced. To have prosecution and penalty provision for Tax evasion.

INDIRECT TAX

1. Service Tax now increased to 14% instead of 12.36%

2. GST to be applied next year.

3. Service Tax exemption to Cold Storage for certain fruits.

4. Custom Duty to be reduced on 22 goods, to encourage Make in India mission.

5. Excise duty will be reduced to 6% on leather shoes

6. Excise duty rates to be reduced

7. Excise registration will now be online and will be provided in 2days. Excise return and docs to be filled digitally.