Accounting Training

Blog

Archive


2016
  • A most welcome clarification has been issued by CBDT on TCS on Cash Sale exceeding Rs. 2 lakhs.
  • CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:

CBDT Circular No. 23/2016 dt. 24 June 2016

  • In order to curb the cash economy, Finance Act 2016 has amended section 206C of the Income-tax Act to provide that the seller shall collect tax at the rate of one per cent from the purchaser on sale in cash of certain goods or provision of services exceeding two lakh rupees. Subsequent to the amendment, a number of representations were received from various stakeholders with regard to the scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Act.

2016
  • Public Provident Fund or PPF is one of the most popular investment options in India. People choose to invest in PPF not only to get lucrative returns but also to save their hard earned money from being taxed. It is an ideal vehicle for long term investment and an important retirement saving tool for individuals, more so for those who are not salaried employees who have EPF option.
  • Government has put icing on the cake by liberalizing the rules related to PPF withdrawal. Earlier a person was not allowed to close his PPF account before maturity. Maturity period of PPF is 15 years which is substantially long time. Even though partial withdrawals were allowed once the account completes 7 years, a person has to wait for 15 years to close his account.
  • The Finance Ministry in a notification dated 18th of June, 2016 informed that people can now close their PPF accounts prematurely. An account holder can now close their accounts once it has completed at least 5 years. Don’t jump for joy yet. There are certain conditions which one must satisfy in order to qualify for this. Broadly speaking, government has laid down only two exceptions for early closure of PPF accounts.

2016
  • There are five questions that I always ask my clients and the people we coach.
  • Now, I'm talking about leaders who are successful, smart and intelligent and have positive intentions. Yet, while they are deeply involved and focused on quality, customers, employee engagement, cost/process efficiency, talent development, market share and so on, they forget to ask themselves the five most important questions. To me, these questions are core to all organization-transformation initiatives and leadership development.

1. What do I really care about and why?

  • What are you really passionate about and what choices do you want to make? Are you passionate about building an organizational culture where everyone takes initiative, collaborates and innovates? Are you passionate about making your shareholders delighted? Do you really care about building an organization that satisfies all stakeholders and not just shareholders? Are you really focused on building future leaders? Or are you really passionate about making a difference in your customers' lives?
  • Now, most leaders do want to focus on all of the above for obvious reasons, as they are interconnected. But the truth is that you will have to prioritize and make choices. So among all the things you are responsible for as a leader of your organization, what do you really care about right now?
  • Any new set of norms, conduct and culture is formed depending on what behaviors you reward and which ones you are tolerating.

2016
  • Time for filing return has come. If you have received your Form 16, you might be preparing to file your return. When you file your return for Financial Year 2015-16 or Assessment Year 2016-17, you must keep in mind some important changes made in the ITR forms. Just like last year, Income Tax Department (ITD) has once again introduced some changes in the ITR forms for Assessment Year (AY) 2016-17. Here are 3 important changes in ITR Form-1, ITR Form-2 and ITR Form-2A which you should know before you file your tax return:

1. New Schedule for those earning above Rs. 50 lakh:

  • ITD has introduced new section for the super-rich in the ITR forms. There are approximately 1.5 lakh taxpayers who have income above Rs. 50 lakh. They are required to disclose assets like cash in hand, jewellery, bullion, yacht, vehicles, aircraft and immovable property like land and building in their ITR.
  • This move has been taken to ensure that abolition of Wealth Tax does not lead to escape of any income from the tax net.

2016
  • Around the 15th day of September, December and March we see advertisements from the government requesting all taxpayers to pay Advance tax. And this often makes many of us wonder, “What is Advance Tax”, “Is it applicable to me?” and questions like that. So to get a better understanding let us discuss the meaning, applicability and the most recent changes in the rules for paying advance tax for individuals.
  • As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year. Also called ‘pay-as-you-earn’ scheme, Advance Tax is the Income Tax Payable if your tax liability is more than Rs. 10,000 in a financial year.
  • Till 31st May, 2016 the due dates and the percentage of instalments of Advance Tax for assessees other than Companies were:
    Due Date of Installments Amount Payable
    1st instalment on or before 15th September Amount not less than 30% of such advance tax
    2nd instalment on or before 15th December Amount not less than 60% of such advance tax after deducting amount paid in earlier installment
    3rd instalment on or before 15th March Entire balance amount of such advance tax

2016
  • Electronic Verification Code (EVC) has been enabled for online filing of appeal before Commissioner (Appeal) in Form 35 for taxpayers not required to file using DSC.
  • Here is the procedure for e-filing /Online Filing of of CIT Appeal in form No. 35 by Individuals and other than Individuals using Digital Signature or by Electronic Verification Code (EVC).

e-Verify Form 35 (Individuals)

  • Login to e-Filing Portal.
  • Click “e-File” – Select “Prepare and Submit Online Form (Other than ITR)”.
  • Select the Form Name as 35 from the drop down and click “Continue”.

Financial Management