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.

Tax consultant in India

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.
More at: http://bit.ly/2rFDxvx
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.

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:http://intuit.me/2r6k7S3

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. 
 Source: http://bit.ly/2rn5kns

 

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.