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.

Tax Advisor in India
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.

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


A fresh challenge for GST(Goods and Service Tax) Council Only Prayers can Solve

It's Faith Vs Logic As Centre Fixes Goods And Service Tax (GST) Rates Ahead Of July Rollout

The GST Council has made puja items exempt from tax, but needs to decide what articles will be included in the category
Service tax registration in India

The GST(Goods and Service Tax) Council has resolved many ticklish economic issues since its inception in September. But now it faces a faith versus economic logic clash.
In its last meeting in Srinagar on May 18, the council took a giant step forward by clearing tax slabs for 1,211 items. Essential items and items of daily use were exempted from tax. Luxury items and not so essential items were divided under three slabs. While some protested the hike in the tax slabs, others welcomed the scale-down.
But the government was caught unawares by an objection of a different kind:  There was no clarity over puja and hawan material. Several organisations rose in protest, asking  how incense sticks could be put under the 12 per cent slab, while meat was exempt from taxes.

The government acted promptly. By evening, the Central Board of Excise and Customs issued a clarification saying, "Puja samagri (items) including havan samagri will be under 'Nil' category. However, the exact formulation for the same is yet to be finalized".

A senior finance ministry official said, "The category has been put under the 'Nil' tax list. But what items will be part of that category is yet to be decided. That call can't be taken by the government, so the issue will go to the GST council meet in June".

This means the council, which is scheduled to discuss issues like tax slabs for gold and bidis, will have to sit extra time to finalise what every citizen uses during prayers.  The matter will be tough to resolve. Even if some items are put under this category, religious groups are asking for more.

Prashant Pandey, the convenor of the Sanatan Mandir Association Uttar Pradesh said, "Meat and foodgrain are essentials. They are used daily, so they have been out on the zero tax list. But for millions of Hindus, incense is a daily item. We want agarbattis to be included to the category of zero tax items".

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


Documents needed for filing Income Tax Returns in India

Tax Consultant in India
Income Tax Return (ITR) is a kind of self-assessment of income tax. You should complete this formality to get the tax refund, if any. Although income tax return filing has become easier, it will help if you keep your documents ready.

ITR is also required if you are trying to apply for a bank loan. If you plan to emigrate to another country, the visa officers would ask to see your ITRs. It is also necessary if you plan to move out of a salaried job and want to start up a new company.

Documents for E-filing ITR or Income Tax Return :

Here is a list of some important documents which are needed at the time of ITR:

1. Pan Card
2. Bank account information
3. TDS certificates (if applicable)
4. Tax payment challans (Self-assessment, advance tax)
5. In case of revised return/return in response to a notice received from Department of Income-tax - You need the details of Original return/details of notice 

Details are here:

1. PAN card :
The first thing you need while filing your Income tax return is your PAN Card.Having a valid PAN is a prerequisite for filing your Income tax return. PAN is your identity proof and quoting PAN is mandatory in various documents including your Income tax return.

2. Form 16 received from your Employer :
For salaried individuals, tax is deducted from your salary before it is credited to your account. The employer, at the end of the fiscal year, will provide you with your Form-16, which contains your salary details, the tax exemptions under various heads based on the documents you have provided to your employer, and your personal information. This Form 16 – in two documents: Form 16A and Form 16B – is mandatory to file your ITR.

3. Form 16 A received from Banks :
Form 26 AS can be downloaded from the TRACES website. It shows Tax deducted and deposited on your behalf by the deductors. It is provided by Income Tax department.In simple terms, it shows the total tax paid against your PAN during a financial year.You can easily download it by logging your Income Tax E-filing Account.As you login and select Form 26 AS option you shall be redirected towards the TRACES website,from where you can get your Form 26 AS.

4. Property Details :
If you have bought or sold any property during the financial year, you need to have details as to ownership,any rental income, purchase or sale date,sale proceeds etc.In case of property sold,you have to give details of any short term or long term capital gains thereon .

5. Business/Professional Income Details :
If you are a sole proprietor, a freelancer, a blogger, an artist or any other professional etc. you should have details of your turnover or receipts, any expenses incurred to generate such revenue like remuneration, travelling expenses, depreciation,telephone and internet bills and other supporting documents.

6. Self assessment Challan/Advance tax Challan :
If you have paid any self assessment tax or any advance tax, you need the respective challan to fill in the respective details in your Income tax return or ITR Form.

So just keep the above mentioned documents while filling the Income Tax Returns. You may consult with the Tax Consultant in India/ Tax Advisor in India for any kind of help. 

How to Protect Your Business Against Fraud?


Chartered Accountant in Delhi

Think about all the money that flows out of a business. Payments go to vendors, suppliers, utilities, and rent. And every rupees that a company spends goes through Accounts Payable (AP). For this reason, AP is vulnerable to fraud from inside and outside of the business.

What is accounts payable fraud?

AP fraud involves a wide range of activities. Check tampering cons, billing schemes, and expense reimbursement scams are all examples of AP fraud. Some definitions:

· Check tampering scheme 

A fraudulent disbursement scheme in which a person steals his or her employer’s funds by intercepting, forging, or altering a check or electronic payment drawn on one of the organization’s bank accounts.

· Billing scheme 

A fraudulent disbursement scheme in which a person causes his or her employer to issue a payment by submitting invoices for fictitious goods or services, inflated invoices, or invoices for personal purchases.

· Expense reimbursement scheme

A fraudulent disbursement scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses.

Red Flags

It’s not always easy to see the signs of AP fraud unless you know where to look. Good accountants have developed effective ways to spot accounts payable fraud. Great accountants can also reduce the chances of it happening. Here are a few ways to detect accounts payable fraud in any business:

1. Consider the human element.

2. Verify your vendors.

3. Test transactions.

4. Monitor financial ratios.

5. Review write-offs.

You can contact us for any help: Accountant in India