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: https://incometaxindiaefiling.gov.in/

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.

ITR

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.
Original Source: http://bit.ly/2w92bX8

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.
Source: http://bit.ly/2uUBZSj

Documents needed for filing Income Tax Returns in India

 

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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. 

11 tax rules which have changed effective from New Financial Year 2017-18

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The New Financial Year has arrived and it has brought a number of changes in some important tax laws. The Union Budget 2017 had introduced several tax-related proposals which became new laws recently when the Finance Bill was passed in Lok Sabha. So, we have listed down 11 key changes made in the tax laws which will be effective from FY2017-18:

1. Lower Tax Rate

The government has spelled relief for middle class people by reducing their tax liability. Through the Finance Bill, the government reduced the tax rate from 10% to 5% for salaried individuals falling in the income range of Rs 2.5 lakh to Rs 5 lakh. A uniform tax benefit of Rs 12,500 will be available to all other income groups.

2. Lower Tax Rebate

Rebate on tax available to salaried people has taken a hit. For individuals with income up to Rs 3.5 lakh, the tax rebate has been brought down from Rs 5,000 to Rs 2,500. "It will result in nil tax liability for individuals whose income does not exceed Rs 3 lakh and tax liability of Rs 2,500 for those within the tax bracket of Rs 3 lakh and Rs 3.5 lakh, without taking advantage of any deduction under Chapter VI," says Chetan Chandak, Head of Tax Research, H&R Block India.

3. New Surcharge Rates

The Finance Bill has introduced new surcharge rates for super-rich taxpayers. Taxpayers who fall in the income group of Rs 50 lakh to Rs 1 crore will have to pay a surcharge @10% while those with income more than Rs 1 crore will be liable to pay a surcharge @15%.

4. Lower tax benefits for home loan takers

Borrowers of home loan were enjoying full tax deduction till March 2017 on interest they paid on their loan. They were able to claim such interest as loss under any head of income except income from house property. However, "from this Financial Year, the loss they can claim has been restricted to Rs 2 lakh while any surplus loss can be carried forward up to eight assessment years and can be adjusted against rental income only," says Chandak.

5. Aadhaar made mandatory for tax filing and PAN application

The government has made it compulsory for people to quote their Aadhaar details in their ITR. Aadhaar has also been made mandatory for fresh PAN applications while existing PAN holders have been asked to link their PAN to Aadhaar.

6. Simplified tax return

The Income Tax Department has also taken an important step towards simplifying the tax-filing process. It has introduced a new one page ITR form for those who have income not exceeding Rs 50 lakh and rental income from not more than one house property.

7. Holding period reduced for long-term immovable property

From this FY, one needs to hold a property only for 2 years for its holding period to be considered long term. It means that you need to hold the property only for 2 years to pay tax on your capital gains at a reduced rate of 20%.

8. Base year of indexation shifted to 2001

Not just the holding period has been reduced to two years, but the base year for calculating indexation of cost has also been changed to give even better tax gains. "The base year has been shifted from April 1,1981 to April 1, 2001. This will result in lower profits on sale and therefore reduced taxability," informs Chandak.

9. Deduct 5% TDS on rent paid

If you live in a rented accommodation and pay a high amount of rent, you will have to deduct & submit TDS. As per the new provision, if your monthly rental payments exceed Rs 50,000, then you will have to deduct 5% TDS. It will be effective from June 1, 2017.

10. New late filing fee

The government not only wants to make tax filing easy for you, but also ensure that everyone files on time. Therefore, it has introduced new provisions to punish late filers and defaulters. "In the AY2017-18, if you delay your return, you may be asked to pay a late filing fee up to Rs 10,000. However, this fee will be less if the delayed return is filed by 31st December. Small taxpayers or those with income up to Rs 5 lakh may be asked to pay Rs 1,000 only," says Chandak.

11. Reduced time period for revised return

Earlier, taxpayers were given a timeframe of 2 years to revise their tax return. However, from this FY, the time period has been reduced to one year only from the end of assessment year or before assessment is completed.

Please contact for any help here: Tax consultant in India

Original Source: http://bit.ly/2olrO3x

Rs 500, Rs 1,000 banned: Here's how I-T sleuths are tightening the screws on evaders

In a move aimed to get cracking on black money hoarders and terror financiers by flushing out fake currency notes, the government starting midnight Tuesday decided to demonetise Rs 500 and Rs 1,000 currency denomination from the system.

Even as common people have been standing in queues for hours outside their bank branches to legitimately exchange their old notes, the real targets are those tax evaders looking to dispose of their unaccounted wealth through illegal transactions.

This is because the government has clearly spelt out that cash deposits exceeding Rs 2.5 lakh would face tax and 200 percent penalty, while higher value deposits of Rs 10 lakh or more will be considered tax. The higher penalty will be levied, especially, if a buyer's previously declared sources of income fails to match with the current explanation.

Fearing income tax scrutiny and the apathy to pay such huge fine, tax evaders are looking at ways to dispose of their cash. However, income tax sleuths are keeping track of transactions primarily at the jewelers end where expectations of huge unaccounted wealth is likely to make its way into.

The I-T deparment have already started conducting search operations across the country since yesterday evening on information that jewelers and hawala operators were accepting the banned Rs 500 and Rs 1,000 notes at 40 percent discount, a Times of India report said.

So, here is how the tax department officials are taking measures to keep a vigil on such transactions:

1) The tax department has been closely watching prominent business centres after the announcement was made, a senior income tax department official has been quoted as saying in media reports.

2) Scrutiny of jewellers has also been stepped up. The jewellers' books for the past few days will be scrutinised. Further, when a jeweller comes to deposit cash by 30 December, he will be asked to account for deposits. He will be asked if he has sold jewellery for Rs 2 lakh in cash, and will also be asked to submit PAN of buyers.

3) Taxmen are also keeping track of transactions where backdated bills are being generated by jewellers.

4) In New Delhi, surveys were conducted in popular market places such as Karol Bagh, Dariba Kalan and Chandni Chowk, along with key trading hubs in Mumbai and Punjab.

5) Also, two big hawala operators were targeted in Mumbai after they found them receiving these banned notes at a discount, the ToI report said.

6) Not just that, the government has also asked jewellery stores across the country to provide CCTV camera footage from the night of 8 November, failing which action will be taken against errant jewellers, said a DNA report.

Through the footage, I-T officials are likely to track down people visiting jewellery shops on 8 November, and whether they have made several trips to the shops thereafter. Besides this, it would also keep a tab on different members of same family that went for jewellery shopping, the report added.

The tax department is hoping that the surveys will discourage traders from resorting to illegal transactions and lead them to deposit cash in bank accounts and pay the corresponding tax and penalty.

Despite its aggressive drive to check tax evaders, the government has been trying to reassure genuine taxpayers that they have nothing to worry about while making cash deposits.

The government has made it clear that cash deposits of less than Rs 2.5 lakh will not attract any scrutiny from the tax department.

Original Source: http://bit.ly/2fWbk1t

Ruchi Anand & Associates are one of the top chartered accountants in Delhi who offer all services ranging from company registration to filing of ITR.