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2016

Form 6 - disclosure of Foreign Assets

  • Form 6 is a form used to declare the undisclosed foreign earnings and foreign assets of an individual while filing the tax returns.
  • This form comes under Section 59 of the Black Money Act which makes it mandatory to disclose any undisclosed foreign income and assets.
  • This form is very simple to fill. Let’s try to evaluate the contents of the form so that it becomes easy for us while filing our Tax Returns.

2015
  • Salaried class of Tax Payers are the most worried class among all other classes of taxpayers.
  • The reason for worrying are countless, most notable aspect is the salary growth rate per annum. People complain that the growth rate is not proportionate to the inflation rate.
  • But for those who get better-paid jobs are concerned about the tax rates particularly those who have increments in a particular year but everything is taken back by the government by increasing the tax rates.
  • However, we have come up with some relief to those who really need it.
  • One may make use of the tips, mentioned below, to at least reduce some tax liability.

2015
  • If you have an income tax refund to claim for the assessment years 2013-14 and 2014-15, then there is a reason for you to cheer. The Central Processing Centre at Bangalore and other field formation of the Income Tax Department have been instructed to hasten the refund process for those who have a refund amount below Rs 50,000 to claim.
  • “Central Board of Direct Taxes has issued directions to its field formations to expedite the issue of pending refunds below Rs. 50,000 for assessment years 2013-14 and 2014-15 in all such cases which have not been selected for scrutiny,” states the notification issued by the Central Board of Direct Taxes on December 7, 2015.
  • A return can be selected for scrutiny during the time period extending up to the end of six months, starting the end of financial year in which the return was filed. So, if you filed your returns on July 15, 2015, then your return can be called for scrutiny up to the end of September 30, 2016, which is six months after March 31, 2016 (the financial year in which you filed returns).

2015
  • The Income tax department has initiated e-Sahyog project to reduce compliance cost for small taxpayers, wherein tax mismatch notices would be sent via emails instead of physical letters and the taxpayer can respond to the notice by logging into the income tax e-filing portal.
  • Have you changed your phone number recently? Provided the email ID of your friends, relatives or the chartered accountant while filing returns? It is about time to get your own email address and phone numbers updated in the Income Tax Department records.
  • This is because the notices sent out to taxpayers for tax mismatch, usually due to erroneous calculations and returns, would not land at your doorstep anymore. Instead the assessing officers would now be sending mismatch notices via email and notifying the same through SMS, in line with the Digital India initiative of the Government of India.

2015

Capital Gain Exemptions

  • Real Estate Market has always been seen as an investment avenue for promising returns for many investors in the past couple of decades. It even delivered the best returns compared to other investments in the recent past. Perhaps the real estate market has been visiting a sluggish trend in last one or two years but things have hardly mattered for those who are still banking on the thought that such situation will be corrected by Government policies. There are others who rely on the market sentiments alike the stock markets. Buying a house or investing in land and then selling it at the higher price once the estate market gives a promised return is a common practice and is done by many. But are we completely aware of the taxation aspects as well?
  • The Income Tax Department has inserted certain exemption provisions for those who have a dream to buy their own house or a bigger house than the existing one. On a plain reading of the provisions relating to exemptions of the Income Tax Act, 1961 pertaining to capital gains one may conclude that the above statement is just perfect.

2015

Income tax – For a better India

  • We have traditionally viewed income tax as an additional charge on our income that is paid to the government account. However we can also term income tax as simply a contribution paid by citizens of India to the government which in turn is utilized for the welfare of the people.
  • India being a great democracy has undertaken a lot of initiatives for the common man to be able to earn as well as pay taxes for the cumulative progress of people.

Financial Management