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2016

“You can still file tax returns”

“Delayed returns can be filed up to two years”

“Returns without paying penalty accepted up to March 31”

  • Have such news items been leading you to believe that the tax filing deadline of July 31 is not written in stone. Well, there is reason enough for you to adhere to the time line for filing returns notified by the Income Tax Department.
  • Though one is permitted to file delayed returns for reasons beyond ones’ control. However, the deadlines for delayed returns have been shrunk as per the Union Budget 2016, as passed by the Parliament recently.

2016
  • We think that poor worry about money and rich don’t. But trust me, when it comes to taxes, we all worry about money. A study done by Business News Daily showed that financial fears take the top seat among reasons to worry. Tax season is on and people have either filed their tax return or planning to do the same. Dealing with tax creates a lot of stress in our mind but once we are done with it, we look for some payback and our weapon in this endeavor is Income Tax Return. Filing tax return may result in healthy tax refund. Tax refunds are excellent stressbusters. Everyone wants to get a juicy refund after filing taxes because who doesn’t want to be rolling in money.
  • However, not everyone is lucky enough to get a cheque from the tax department. If you are expecting a tax refund, you certainly don’t want to be at the bottom of the waiting list. You must be careful while filing return if you want deep pockets. If you paid more than your share to the taxman, then you deserve a refund. All you need to do is avoid some pitfalls to get your tax refund on time:

2016
  • TDS rules vary depending on whether you are purchasing house from a resident Indian or an Non-Resident. In our previous blog we talked about the TDS rules linked with purchase of house property from a resident seller. Now, let us understand the TDS rules associated with purchase of house property from an NRI. Tax rules are little more complicated in this case.
  • TDS rules in this case are governed by section 195 of the Income Tax Act 1961. Under this section TDS needs to be deducted irrespective of the value of the property and minimum threshold limit of Rs. 50 lakh does not apply. Let us have a look at some other important points.

Key points in case of purchasing property from non-resident Indian:

  1. As was the case in our earlier post, here also you need to deduct TDS and deposit it with the government within 7 days from the end of the month in which TDS is deducted.
  2. Before making any payment to a non-resident, you need to obtain a certificate in Form 15CB from a Chartered Accountant. Further you also need to file an online declaration in the Form 15CA (undertaking by remitter/you) on the income tax website through your PAN login.

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
  • 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

Financial Management