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2017
  • A taxpayer has to comply with ‘paying’ income tax and ‘filing’ income tax returns every year. Though it is important to file the tax returns within the due date, this doesn’t mean that he cannot file his income tax returns, in case he has missed filing it, due to some unforeseen reason.
  • But if a person has missed the deadline, he might have to face some penal consequences and might even get a notice from the IT department anytime. In addition to it, there are other consequences of filing belated taxes which may affect the total tax liability of the taxpayer. The Income Tax Act has prescribed certain penalties for late filing of tax returns.

2017
  • The last day to file your taxes is July 31 (extended to August 5, 2017, for Assessment Year 2017-18). We hope that most of you have filed your taxes by now. A wise man once said that in this world, only two things are certain - Death & Taxes. Both of these entities have a due date. We can’t know and plan for the deadline for the first one, but have you ever wondered what will happen if you miss the deadline for the second.
  • If you haven’t filed your Income Tax Return for any reason, then don’t take the situation lightly. Failing to file tax return on time can be pernicious. There is a lot to lose if you don’t hurry. Some people have a common misconception that there is nothing to lose if they have paid their taxes on time. Today, we will look at everything which you can possibly, if you squander the chance to file your Income Tax Return on time.

Lose the chance to revise return

  • If you made any error in doing your taxes, tax department allows you to file a revised return. However, you cannot file a revised tax return if you filed your original return late. You should file your return before the due date so that you do not lose any refund due to incorrect filing.

2017
  • Taxpayers often ignore different types of income while filing their income tax returns. These incomes fall under ‘income from other sources’ category. This may happen due to the taxpayer’s unawareness about the taxability of such income or they hiding it intentionally from the tax authorities.
  • There are several heads of income like income from salary, income from capital gains, income from profession and business and income from house property for which you need to file ITR. There are, however, certain types of income that fall under the head ‘income from other sources’.
  • Income that comes under the income from other sources head must satisfy certain conditions. Firstly, income shouldn’t be exempt under the provisions of the I-T Act, and secondly, income should not fall under any other income head.

2017
The Ministry of External Affairs just recently announced a new set of rules for applying for a passport. And we’ve summarized some of the major changes that these new rules have bought in.

DOCUMENTATION FOR PROOF OF BIRTH:

As per the earlier rules, submitting a birth certificate was compulsory for all applicants born on/after 26th January 1989. But the new rules have bought in a relaxation in this regards. Now, any of the following documents containing the DOB of the applicant will suffice:
  • Birth Certificate (BC) issued by the Registrar of births and deaths or the Municipal Corporation or any other prescribed authority whosoever has been empowered under the Registration of Birth & Deaths Act, 1969 to register the birth of a child born in India
  • Transfer/school leaving/matriculation certificate issued by the school last attended/recognized educational board
  • PAN card

2017
  • The government has introduced new section 269ST in Income Tax Act 1961 for prohibition of acceptance of cash of Rs 2 lakh and more.
  • For cash transactions above that limit, the receiver will need to pay a penalty equivalent to the amount of transaction. There are no exceptions to this.
  • You cannot gift cash to close relatives (children, parents and spouse) above Rs 2 lakh and even on the occasion of marriage; you cannot accept a higher amount of cash as a gift.
  • At present, there are few other areas which have either a cap on cash transaction or a complete ban. Here are those transactions and the penalty that may attract for flouting the rules...

2017
  • As per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax returns (ITR).
  • The process of electronically filing income tax returns is known as e-filing. You can either seek professional help or file your returns yourself from the comfort of your home by registering on the income tax department website or other websites. The due date for filing tax returns (physical or online), is July 31st.

Who should e-file income tax returns?

Online filing of tax returns is easy and can be done by most assessees.
  • Assessee with a total income of Rs. 5 Lakhs and above.
  • Individual/HUF resident with assets located outside India.

Financial Management