Thursday, 7 July 2016

Individual Income Tax Return ITR-1 (SAHAJ)

Every individual or HUF whose total income exceeds the maximum amount which is not chargeable to income-tax is obligated to furnish his return of income, The maximum amount not chargeable to income tax in case of different categories of individuals is as follows:-

Recommended Reading : Calculation of Total Income

Category	Amount
Resident Individuals whose age is below 60 years	Rs. 2,50,000
Resident Individuals whose age is 60 years or more but less than 80 Years	Rs. 3,00,000
Resident Individuals whose age is 80 years or more	Rs. 5,00,000
Non-Resident Individual*	Rs. 2,50,000

*For Non-Resident Individual the benefits of Senior citizen and super senior citizen does not apply

Recommended Reading : Choose Your ITR Return

ITR-1 :- For Salaried Individuals

Individual who has income only from the following sources can file ITR-1

Income from Salary/ Pension or
Income from One House Property (excluding cases where loss is brought forward from previous years) or
Income from Other Sources (excluding winning from lottery and income from Race Horses)

Individuals who has any income from the following sources cannot use ITR-1

Income from more than one house property or
Income from winnings from lottery or income from Race horses or
Income from short-term capital gains or long-term capital gains from sale of house, plot, shares etc. or
Agricultural income in excess of Rs. 5,000 or
Income from Business or Profession or
Loss under the head other sources or
Any Person claiming relief under section 90 and/or 91

If any Resident Individual who has any Income from any source outside India or has any asset outside India or has signing authority in any account located outside India cannot file ITR-1.

Note:-Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

Recommended Reading : Income Tax Slabs

No documents needed to be attached while filing the ITR-1 Including from 16, Form 16A, Form 26AS or any other sheets.

The ITR-1 Can be filed by any of the following three different ways

By furnishing the return in a paper form
By furnishing the return electronically through online E-Filing
By furnishing the return through Utility

Filing by using Excel Utilty.
Filing by using Java Utility

The ITR-V has to be sent to the following Address for Processing.

Post Bag No. 1, Electronic City Office, Bengaluru— 560100, Karnataka.

ITR-1 can be downloaded by using the following links

Steps to File ITR-1

Filing by paper mode

Step 1:- Download ITR-1 From the above Link or From Incometaxindiaefiling website

Step 2 :- The ITR is divided in to four parts(Part A, Part B, Part C and Part D). Fill the Downloaded ITR form as Follows

Part A

First You have fill the Basic Details such as Name, Pan, DOB, Income tax ward/circle etc.. and
Select the status of Tax available from the Part D below i.e., Tax Payable or Tax Refundable or Nil Tax balance and
Select the Residential Status of Individual as Resident or Non-Resident or RBNOR
Select the Type of Return Original or Revised Return etc....

Part B

Enter the Total income From Salary/Pension (Recommended Reading : Calculation of Total Income From Salary)
Enter Income from House Property if Loss is there enter the value in negative Figure (Income from House Property)
Enter Income From Other Sources
Enter Gross Total Income by adding the Total of above 3 Items

Part C

Calculate deductions under Section 80C to 80U under Income Tax Act (Recommended Reading : Deduction Under Section 80C to 80U Calculation)
Enter the value of deduction under each section in the space provided opposite to each section.

Part D

Enter the Tax Computation by using the Calculator ( Download the Income Tax Calculator )
The tax status available i.e., Tax Payable or Tax Refundable or Nil Tax balance is to be entered in the part A Tax Status

Step 3:- Enter the details of the bank account (i.e., IFS Code of the bank, Bank Name , Account Number and Account Type) only if any refund is due.

Step 4:- The Assessee has to Self declare that All the Above particulars are True for the best of his knowledge and sign.

Step 5 :- Enter the details of the Taxes Paid

Enter the details of tax paid as Self assessment tax and Advance Tax paid In the Schedule IT
In the Schedule TDS1 enter the details of TDS deducted from the Salary from Form 16/Form 26AS
In the Schedule TDS2 enter the details of TDS deducted from other than Salary from Form 16A/Form 26AS
Enter the details of TCS if any Tax has collected at source.

Note:-Use additional Supplementary Schedule for TDS deducted on Salary and TDS deducted on other sources if the TDS is deducted from more than 3 deductors.

Step 6 :- If the total Assets and Liabilities at the end of the year is more than 50 Lakhs then the Assessee has to declare the Particulars of the Following Assets

Immovable Property

Land
Building

Movable Property

Cash In Hand
Jewellery, Bullion etc.,
Vehicles etc.,

Step 7:- The assessee is also Required to file the ITR-V Acknowledgement also which can be downloaded from the Incometaxindia website

After entering all the above details the assessee can Submit the Income Tax Return (ITR-1) Form along with the filled ITR-V in the Income Tax Office by Physical mode.

Filing by Using Utility

Step 1:- Download ITR-1 From either Java or Excel Utility and extract the Zip file. Enable macros if the macros are disabled by pressing windows Icon on the top left corner and Excel options-> Trust Center-> Trust Center Settings ->Macro Settings select enable all macros.

Step 2 :- The ITR is divided in to six Sheets. Fill the Downloaded ITR form as Follows

Sheet 1 Income Details

First You have fill the Basic Details such as Name, Pan, DOB, Income tax ward/circle etc.. and
Select the status of Tax available from the Step 3 below i.e., Tax Payable or Tax Refundable or Nil Tax balance; and
Select the Residential Status of Individual as Resident or Non-Resident or RBNOR
Select the Type of Return Original or Revised Return etc....
Enter the Total income From Salary/Pension (Recommended Reading : Calculation of Total Income From Salary)
Enter Income from House Property if Loss is there enter the value in negative Figure (Income from House Property)
Enter Income From Other Sources
Calculate deductions under Section 80C to 80U under Income Tax Act (Recommended Reading : Deduction Under Section 80C to 80U Calculation)
Enter the value of deduction under each section in the space provided opposite to each section.

Sheet 2 Enter the details of the Taxes Paid
- Enter the details of tax paid as Self assessment tax and Advance Tax paid In the Schedule IT
- In the Schedule TDS1 enter the details of TDS deducted from the Salary from Form 16/Form 26AS
- In the Schedule TDS2 enter the details of TDS deducted from other than Salary from Form 16A/Form 26AS
Sheet 3 Enter the details of TCS if any Tax has collected at source.
Sheet 4 Summary of Taxes paid and Tax Status will be taken Automatically from the entered details.
Sheet 5 Schedule applies If the total Assets and Liabilities at the end of the year is more than 50 Lakhs then the Assessee has to declare the Particulars of the Following Assets
- Immovable Property
- Movable Property
Sheet 6 Details of donations entitled for deduction under section 80G.

Notes :- After completing the data entering in each sheet Press Validate available on the top right corner of each Sheet it will show if any errors present in each sheet.

Step 3 :- After entering data in each sheet and validating each sheet, Go to Sheet 1 (Income Details) and press calculate Tax button available on the to Right corner of the Sheet. It will Automatically calculate Tax Liability and Tax Status (Tax Payable or Tax Refundable or Nil Tax balance)

Step 4 :- After Step 3 You will get you tax status enter the status in the Sheet 1, If any tax is refundable Enter the details of the bank account (i.e., IFS Code of the bank, Bank Name , Account Number and Account Type) in the sheet 4 (Taxes Paid and Verification) for Refund Initiation.

Step 5:- After Step 4 go to sheet 1 and press generate XML the Utility will generate XML in the place where the Utility is saved.

Step 6:- After XML is generated go to efiling website and login with the details and menu bar under e-file -> select Upload Return in the upload return page select ITR-1 and Year of Assessment and chose your XML and Select DSC as Yes if You have digital signature if No select No and press Submit.

Recommended Reading : Uploading of ITR

Step 7:- After Uploading the Return go to Dashbord->View Returns/Forms and select the ITR you have filed and download ITR and ITR-V

Step 8 :- If DSC is not used at the time of uploading return signed ITR-V has to be sent to the address specified on the top of this article with in 120 days of filing of return.

Recommended Reading : Procedure for Sending ITR-V by Post.

Note:- Procedure of filing Return by Java Utility is also the same as Filing by Excel Utility.

Filing Return Electronically

Step 1 : - Login to efiling website and in the menu bar under e-file-> Select Prepare and Submit online ITR.

Step 2 :- Select Year and Return as ITR-1 and Select DSC as yes if you have digital signature and No if you don't have DSC and submit

Step 3:- The details of Personal information will be already entered in the ITR you need to enter only other details(Same as entering in the Excel Utility)

Step 4 :- After entering all the Details click submit button available on the top of the return.

Step 5:-After Submitting the Return go to Dashbord->View Returns/Forms and select the ITR you have filed and download ITR and ITR-V

Step 6 :- If DSC is not used at the time of uploading return signed ITR-V has to be sent to the address specified on the top of this article with in 120 days of filing of return.

Recommended Reading : Procedure for Sending ITR-V by Post.

Tuesday, 5 July 2016

TDS Return

Income Tax Unknown 05:26:00

TDS Return

Every person who has deducted TDS has to deposit the amount of TDS to the credit of the central government within the Due dates given under the Income Tax Act. And the deductor is also responsible to report the tax deducted in a statement 24Q or 26Q or 27Q or 27EQ as applicable within the prescribed time and the details to be furnished in the Return includes TAN No of the deductor, TDS amount paid, TDS deducted, Pan of the Deductee and Rate at which TDS deducted (for 26Q and 27Q) etc….

TDS Forms

The TDS Return forms are prescribed separately depending on the nature of payments, the various TDS forms are as follows.

Form No.	Particulars	Periodicity
Form 24Q	Quarterly return of deduction of tax in respect Salaries	Quarterly
Form 26Q	Quarterly return of deduction of tax in respect of all payments other than "Salaries"	Quarterly
Form 27Q	Statement of deduction of tax for the payments made to NON-Resident	Quarterly
Form 27A	Physical control chart containing control totals mentioned in TDS return furnished electronically.*	With each e-TDS return
Form 27B	Physical control chart containing control totals mentioned in TCS return furnished electronically.**	With each e-TCS return

*Form 27A in physical form to be submitted along with electronic TDS return (e-TDS)

**Form 27B in physical form to be submitted along with electronic TCS return (e-TCS).

Due Dates for Filing of TDS Return

The Deductor who has to file the above returns has to file within the following due dates as prescribed under the Income tax act. The due dates for filing of Return as Follows.

Due Dates For Filing of E-TDS
Quarter	Period	Form 24Q	Form 26Q	Form 27Q	Form 27EQ
Q1	April to June	31^st July	31^st July	31^st July	31^st July
Q2	July to September	31^st October	31^st October	31^st October	31^st October
Q3	October to December	31^st January	31^st January	31^st January	31^st January
Q4	January to March	31^st April	31^st April	31^st April	31^st April

If any person fails to file TDS return within due dates mentioned above the following penalties would be leviable

If the deductor fails to file TDS Return within the due dates specified in the above table he is liable to pay penalty for late Filing of TDS Return at the rate of Rs. 200 for every day during which failure continues. The maximum amount of Penalty however does not exceed the amount of TDS to be deducted.
If the deductor fails to file a return within one year from the due date or furnishes incorrect information in the statement then the assessing officer may direct for the payment of penalty which shall not be less than Rs. 10,000 but may extend up to Rs. 1,00,000.

Filing of TDS Return

Since FY 2003-04, all corporate deductors/Collectors should file Income tax returns for deduction of tax at source (TDS) only in electronic form.
From FY 2004-05, in addition to corporate deductors/Collectors, filing of TDS returns in electronic form is mandatory for government deductors also.
Where the deductor/Collector who is required to get his accounts audited under section 44AB is required file TDS returns in electronic form only.

The Deductor should prepare and file the TDS return with latest version of Return Preparation Utility (RPU) only which is available at TIN NSDL

Recommended Read: Procedure to file TDS Return

The TDS/TCS FVU generated file along with form 27A(Signed Copy) have to be submitted to Tin facilitation centers.

Revision of TDS Return

TDS regular return filed within the due date can be revised any number of times for making the following changes

Update deductor details such as Name, Address of Deductor.
Update challan details.
Update/delete /add Deductee details.
Add / delete salary detail records.
Update PAN of the deductee or employee in deductee/salary details
Add a new challan and underlying deductees.

Note:- The adding of challan function has been disabled in the RPU and it can done either online by Traces or by Downloading Utility for adding challan from Traces.

Recommended Read: Procedure to Revise TDS Return

Friday, 24 June 2016

Declared Services

Service Tax Unknown 04:43:00

The activities when carried out by a person for another for consideration would amount to provision of service. Service tax is levied on event of provision of various services. To remove any ambiguity some activities are considered as rendering of services thus service tax will be applicable.

In the definition of ‘service’ contained in clause (44) of section 65B of the Act it has also been stated that service includes a declared service. The phrase ‘declared service’ is also defined in the said section as an activity carried out by a person for another for consideration and specified in section 66E of the Act.

66E. Declared Services.-

The following shall constitute declared services, namely:–

Sl. No.	Services
(a)	Renting of immovable property*
(b)	construction of a complex, building, civil structure or a part thereof	construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except Where the entire consideration is received after issuance of completion-certificate by the competent authority. Explanation. — For the purposes of this clause,— I) the expression "competent authority" means the Government or any authority authorized to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:– a) architect registered with the Council of Architecture constituted under the Architects Act, 1972; or b) chartered engineer registered with the Institution of Engineers (India); or c) licensed surveyor of the respective local body of the city or town or village or development or planning authority; II)the expression "construction" includes additions, alterations, replacements or remodeling of any existing civil structure;
(c)	Intellectual property right	temporary transfer or permitting the use or enjoyment of any intellectual property right;
(d)	Information technology software	development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software;
(e)	refrain from an act, or to tolerate an act or a situation**	agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
(f)	hiring, leasing, licensing	transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;
(g)	delivery of goods on hire purchase	activities in relation to delivery of goods on hire purchase or any system of payment by instalments;
(h)	works contract	service portion in the execution of a works contract
(i)	food or any other article of human consumption or any drink	Service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity.
(j)***	radio-frequency spectrum	Assignment by the Government of the right to use the radio-frequency spectrum and subsequent transfers thereof.

**Note:- The above activities when carried out by a person for another for consideration would amount to provision of service. Most of these services are presently also being taxed except in so far as Sl. No.(e) is concerned. It is clarified that they are amply covered by the definition of service but have been declared with a view to remove any ambiguity for the purpose of uniform application of law all over the country.

* Renting of certain kinds of immovable properties is specified in the negative lists which are not taxable.

1) Renting of vacant land relating to agriculture.

2) Renting of residential dwelling for use as residence.

3) Renting out of any property by the Reserve Bank of India.

4) Renting out of any property by a Government or a local authority to a non-business entity.

Note: - Renting of immovable property for some specific purpose is also exempted by exemption Notification.

***Inserted by the Finance Act 2016

ActRules

Thursday, 7 July 2016

Individual Income Tax Return ITR-1 (SAHAJ)

Individual Income Tax Return ITR-1 (SAHAJ)

ITR-1 :- For Salaried Individuals

ITR-1 can be downloaded by using the following links