One year of demonetisation: Taxman set to shoot off 1 lakh notices

The Income Tax Department is set to dash off notices to about one lakh entities and individuals, who deposited huge cash in banks post demonetisation and whose tax returns have been picked for detailed probe into suspected discrepancies, official sources said on Tuesday.
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 Issue of notices will begin this week, they said. In the first tranche, notices will be issued to 70,000 entities who deposited over Rs 50 lakh in cash in banks but chose not to file tax returns or respond to the relevant Income Tax Department advisories, the sources said.
These notices will be issued under Section 142 (1) of the I-T Act (inquiry before assessment), they said. Similarly, about 30,000 scrutiny notices will be issued to those whose deposits and tax returns were found to be starkly deviant from their past behaviour or their accounts showed huge monetary transactions post demonetisation, they added.
As many as 20,572 tax returns have been selected for the scrutiny procedure by the department post demonetisation, declared by the government on November 8 last year.
The rest of the scrutiny notices will be issued in due course, they added. This action will be followed by the taxman issuing similar notices by next month to those individuals and entities who have made deposits between Rs 25 lakh and Rs 50 lakh post demonetisation. These activities, they said, are part of the 'Operation Clean Money' that was initiated by the tax department in January this year to check black money generation post the note ban.
According to official data, accessed by PTI, 17.73 lakh suspicious cases involving Rs 3.68 lakh crore have been identified by the taxman in 23.22 lakh bank accounts post demonetisation. Responses from 11.8 lakh people for 16.92 lakh bank accounts have been received by the department online till now. We will again ask people who made bank deposits of over Rs 50 lakh to respond, he added.

Tips For Doing Business In India

Globalization has made the business world come closer. No matter the country you intend to do business with, it is always beneficial to learn about the culture and how business is done.
With FDI being liberalized in a unique way, India has opened doors for the world to come and do business in India. Spectacular economic growth from the explosion of offshore outsourcing and manufacturing in India has created immense opportunities for investment and international commerce.

Whatever be the reasons, for an outsider trying to do business with us Indians, the journey can be both frustrating and entertaining (if you have a sense of humor). Companies from various countries come to India for business and seek registration for their representative companies or establishments of companies here.
The following tips will help you ensure that you maximize your opportunities for doing business in India:
  • Be aware of size and structure
  • Be clear and direct in communications
  • Understand the complex tax environment
  • Adopt a flexible approach
  • Take time to make friendly small talk at the start of a meeting
  • You can choose Delhi for your Indian headquarters/Choosing Delhi for HQ makes sense
  • Work harder for specific outcomes
  • Do your research ahead of time
  • Business often takes longer in India but do your best not to show frustration or anger
  • Cities aren’t the only places for opportunity
Understanding the small differences can prevent potential business partners being offended and helps build strong relationships. Considering and respecting the top tips for doing business in India above is the first step towards building effective relationships.
How to Ensure New Business Setup in India?
Types of business entities in India

If you are considering doing business in India contact the best Indian specialists: Ruchi Anand & Associates in India. Ruchi Anand & Associates is one of the top Chartered Accountant in Delhi(India). Always ready to help you out regarding all your queries(Click here): Contact Us

You have time till Saturday to file your tax returns, here's what you need to do?

How to prepare and file ITR completely online ?
You have time till Saturday to get all your tax papers in order. People with salary income who are eligible to use ITR 1 or ITR 4 form can file their tax return completely online via the income tax e-filing website without having to download any form/software.

Using this method, a person can fill the form online by entering the relevant information and finally submit it online as well.
This step by step guide will help you do the same.

1. Visit the e-filing website:

2. If you are a first time user or filing your returns for the first time then click on the 'New Registration' tab and register yourself by providing relevant details and creating your profile and password. While creating your user ID, you must ensure that you have an active e-mail id and mobile number and it is mentioned correctly.
It is important as communication by the department will be sent on this. Registration will be completed by clicking activation link sent via email and providing one-time password (OTP) received on the mobile. Click on the 'Registered user' if you have already registered yourself on the website. For any assistance, one can click on 'Customer care tab' to get the helpline number and call the customer care centre.
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3. Next click on login tab and enter the required details: your user ID i.e. your PAN, password, date of birth (mentioned on the PAN card) and captcha code. Click on log-in button at the bottom to sign in.
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4. After signing in, your account dashboard will open up as shown in the picture below. Click on the 'e-file' tab and select the 'Prepare and submit ITR online' option.

Online Tax Registration
5. Next, select the relevant form and assessment year for which the return has to be filed. Here taxpayer can pick his address either from the PAN database, from previously filed return or fill in new address. The department here asks you whether you want to digitally sign your return. If selected 'Yes', you are required to upload your signature which needs to be pre-registered at the income tax website.
6. Click on the 'Submit' button and the website will redirect you to the page for filling the form selected by you. Before starting to fill the ITR form, one should read the 'General Instructions' given at the start of the form to know do's and don'ts.

7. After that you will be asked to fill in required information in different tabs i.e. General information, Income details, Tax details and taxes paid in the ITR form. One should ensure that the Tax payable shown in the online form matches your calculations.

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8. Before making a final submission, it is advisable to save the data entered and recheck it to avoid any mistakes. Once 'Preview and Submit' button is clicked, your form will appear allowing you a preview of your ITR form before final submission is made.

9. Once the 'Submit' button is clicked, your ITR will be uploaded and you will be asked to verify your return using any of the options available.

10. If you have already registered your digital signature, you will be asked to upload the same while submitting your ITR at the final step. Once it is uploaded and submission has been made, process of ITR filing is completed and no further verification is needed. You will not be required to send acknowledgement/ITR V in physical to CPC, Bengaluru.

11. However, if you do not have/haven't uploaded the digital signature while filing the return, then you can verify your return either electronically using Aadhaar OTP or Electronic Verification Code method or by sending a signed print out of the ITR V to CPC, Bengaluru within 120 days from the date of e-filing.

12. An Acknowledgement/ ITR V will be simultaneously sent to you on your registered email ID once your return is successfully uploaded. This acknowledgement will also show up in your account on the e-filing website from where you can download it if required.

13. The department will process your ITR once you verify it. After your ITR is processed, you will be intimated about the same via mail and sms on your registered mobile number.
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You may consult with the Tax Consultant in India/ Tax Advisor in India for any kind of help.

NRIs need not give account details if seeking no refund: CBDT

Non-resident Indians (NRIs) won’t be required to disclose their overseas bank accounts in the income tax return form, the Central Board of Direct Taxes (CBDT) has said. “It is not a mandatory field in the return. It is there only for those who wish to seek refunds,” CBDT chairman Sushil Chandra told reporters on the sidelines of an Income Tax Department event on Monday.
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Chandra was responding to queries on the new return form seeking details of bank accounts held outside India by non-residents, excluding dormant accounts. ET earlier reported that some NRIs were confused by a column in the return form seeking details of bank accounts.
The CBDT received representations last year from NRIs in which they asked for an option to provide foreign account numbers as there was no provision to mention them. “A number of representations were received from non-residents that they are facing difficulties in getting refund as they do not have bank account in India and there is no column in the notified form of return of income for reporting details of foreign bank account by the non-residents for this purpose,” a CBDT statement later said.
In view of this, space has been provided in the return for reporting of details of overseas bank accounts by NRIs who don’t have accounts in India and are claiming income-tax refunds, it said. “Therefore, the non-residents who are not claiming refund or non-residents who are claiming refund but having a bank account in India are not required to furnish details of their foreign bank account in the return of income.
However, the non-residents, who are claiming income-tax refund and not having bank account in India may, at their option, furnish the details of one foreign bank account in the return of income for issuance of refund,” the statement said.

Income Tax department to launch Mobile App to make life easy for Taxpayers

The income-tax department will soon launch a mobile app that it expects will act as a portal for almost anything I-T-related that an individual might need. From payments, tax deducted, to communications from the department, everything can be managed through the My Tax app.
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"It is being developed in-house," a government official told ET. The individual's profile will be mapped to the permanent account number (PAN), allowing the collation of all tax-related information, including deductions by third parties, pertaining to that login.

Taxpayers will also be able to respond to queries from the IT department or file complaints via the app, which is being developed as part of a drive by the Central Board of Direct Taxes (CBDT) to make the administration non-intrusive and taxpayer friendly. It will complement similar initiatives by the board such as online scrutiny, which allows tax officials to seek details of transactions and get responses by email.

The department recently unveiled Aaykar Setu, a new taxpayer service module that will have mobile and desktop versions. The app will provide various services such as PAN, TAN (tax deduction and collection account number) and tax payments.

My Tax app will be personalised, linked to a taxpayer through the sign-in, but it's not clear whether tax-filing facilities will be immediately available.
Prime Minister Narendra Modi has sent a clear message to the tax authorities that they need to ensure that taxpayers do not fear the department. The department is working on a number of initiatives to improve its image.

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 You may consult with the Tax Consultant in India/ Tax Advisor in India for any kind of help.

Tax rates under GST: The gains and losses for the Indian middle class

It's only less than a month left until Goods and Service Tax (GST) sees the light of the day. India's biggest tax overhaul crossed its final hurdle last week when GST Council agreed to tax gold and silver jewellery at 3 per cent tax rate.
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With GST to be implemented from July 1, it's the ideal time to check if your monthly budget will be affected under the new tax regime. We've put down a list of goods and services that will become cheaper or costlier once GST comes into force.
Gold: GST Council has fixed the tax rate of the precious metal at 3 per cent. GST Council on June 3 created a new tax bracket for gold, diamonds and silver. The current excise duty on gold was 1 per cent and 1 per cent VAT in many states. With 3 per cent GST, Gold is set to become costlier July onward.
Banking Charges: Transaction fee on various banking and financial services are expected to go up as GST will tax these services under 18 per cent tax rate from the current 15 per cent.
Hotel Bookings: GST on hotel services will depending on the kind of room you stay in. If the room tariff is less than Rs 1,000, your stay will be tax free. However, if the room tariff is between Rs 1,000 - Rs 2,500, you'll be taxed 12 per cent. It the tariff is between Rs 2,500 to Rs 5,000, the stay will be taxed at 18 per cent. For luxury hotels, where the tariffs are more than Rs 5,000, GST rate of 28 per cent will be applicable.
Eating Out: There are different tax slabs for restaurants depending on their turnover and whether they have air-conditioning or or not.
Restaurants with a turnover of less than Rs 50 lakh will be levied a tax rate of 5 per cent. 
Non-AC restaurants will be charged 12 per cent GST on food bill. Tax rate for AC restaurants and those with liquor licence will be 18 per cent, whereas restaurants in 5-star hotels will attract a GST rate of 28 per cent.
While ordering food from your neighborhood non-AC joint may get a little costly under GST, eating out in AC restaurants is set to become cheaper as the current tax rate includes 5.6 per cent Service tax and 14 per cent VAT in some states.
Telecom Bills: Your mobile and internet bills are expected to rise once GST comes into force. Currently, there is a 15 per cent service tax on telecoms services. Under GST, the tax rate applicable will be 18 per cent. The industry, which is already stressed with the launch of Reliance Jio, is expected to pass on these charges to customers.
Currently, there is service tax on cinema and states have separate entertainment taxes. Maharashtra levies more around 50 per cent entertainment tax on movie tickets. In Uttar Pradesh (UP) entertainment tax is around 30-40 percent.
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You may consult with the Tax Consultant in India/ Tax Advisor in India for any kind of help.

Top Lessons Learned for First Time Tax Filers

If you’re a new filer, congratulations on surviving your first tax year!
Younger filers typically don’t own a home, didn’t sell a bunch of stocks, and likely don’t yet own a business.

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If this was your first tax filing year, I bet you learned a few things. Here are some lessons learned you can apply for next year:

Set Up a Checklist Now

Your tax situation next year will be probably very similar to this year. Even if you experience some life changes you can use the taxes you filed this year as a guide for next year. Keep a checklist of all the tax documents you expect to receive. This checklist is crucial because you can start gathering your documents in one place throughout the year so you have everything ready to go when you sit down and file for your tax refund next year.
If you do have any life changes, keep in mind you may have some additional forms to keep track of. For instance, if you buy a house, expect to get tax forms related to your mortgage. If you have a child, you may have child care expenses you can claim. As these changes occur throughout the year, you can track related receipts and documents so you will be ready at tax-time. Don’t worry about knowing tax deductions and credits related to life changes.

File as Soon as Possible

Did you get a tax refund this year? If so, try to file as early as possible next year so you get your money faster. Your checklist and gathering everything in one place will help you file early so you can get your tax refund sooner.

Keep a Tax File All Year

The most time consuming tax related activity you’ll do is trying to find a form you received early in the tax year. You can avoid the scramble by putting all tax related documents in a single place. This way you know where your documents are and you won’t spend hours looking for them in your house or online in your account.

Read This Year’s Tax Return

It’s always good to take a look at your tax return after you’re done. Read it through and see what the various sections are so you can understand your financial situation more.

You may see different things about your finances that you never noticed. How are your charitable contributions? Did you earn any dividends or interest? How might you improve your financial situations by increasing those? Your tax return is a good barometer of your financial progress so give it a look.

Also, make sure you always keep a copy of the last three years of tax returns. You also may need your previous year tax return to refer to your previous year adjusted gross income since that amount is needed in order to e-file your taxes.

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You may consult with the Tax Consultant in India/ Tax Advisor in India for any kind of help.