Deposited ‘large amount of cash’ during note ban? File ITR by March 31

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
The department said it was the final call for filing of belated or revised ITRs for assessment years 2016-17 and 2017-18

The Income Tax Department on Friday urged those who deposited “large amounts of cash” post demonetisation and all companies to file their returns by March 31, failing which they may face penalty and prosecution.

 

It also cautioned eligible trusts, political parties and associations to file their income tax returns by this final deadline and “come clean”.

 

The department, in public advertisements issued in leading dailies, said it was the final call for filing of belated or revised ITRs for assessment years 2016-17 and 2017 -18.

 

It underlined that there was still time for these categories of taxpayers and that they should avoid last minute rush and file the ITRs well before the deadline.

 

“If you have deposited large amounts of cash in your bank account/made high value transactions, please consider the same while filling your ITRs.

 

“Non-filing or incorrect filing of return of income may result in penalty and prosecution,” the public advisory said. It said all companies, firms and limited liability partnership concerns were also required to do so.

 

The deadline is also applicable, it said,to trusts, associations and political parties whose income prior to claim of exemptions exceeds the minimum chargeable to tax. Individuals and Hindu Undivided Families having income more than Rs 2.5 lakh and senior citizens with income of over Rs 3 lakh (60-80 years of age) and Rs five lakh (over 80 years of age) too need to file their returns for the mentioned assessment years, it said.

 

Source: Business Standard

You can shift residence, fudge address but you can’t avoid income tax notice anymore

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

Avoiding income tax notices by fudging addresses or shifting residence will now become difficult. Income tax rules have been amended that will allow the tax department to deliver notices to assessees at addresses given by them to banks, insurance companies, post offices etc in case the notice is undeliverable at the address supplied to the tax department.

The government issued a notification dated December 20, 2017 amending the Income Tax Rules to ensure that all notices, summons, requisitions or any other communication issued in your name is delivered to you either via post or e-mail.

As per the notification, in case the communication or notice to be served to the assessee cannot be delivered/transmitted to the available address, as per Rule 127 of the Income Tax Rules, the government may use the address mentioned in the following databases to deliver the communication:
a) Address given by you to the bank;
b) Address given by you to the insurance company;
c) Address given by you to the post office while investing in the Post Office schemes;
d) Address as available in government records;
e) Address available in the records of local authorities;
f) Address of the assessee as furnished in Form 61 to the income tax department under Rule 114D;
g) Address as furnished in Form 61A to the tax department under rule 114E.

As per the earlier norms, the communication to the assessee was sent through post or email at the any of the following addresses:

a) Address available in the PAN database;
b) Address available in the income tax return (ITR) to which the communication pertains to;
c) Address as available in the previous year’s ITR;
d) E-mail address available in the ITR for which communication pertains to;
e) E-mail address as available in the last ITR;
f) Any e-mail address available with the income tax authority.

The notification has been published in the Gazette of India by the Minsitry of India vide Notification No. 98/2017/F. No. 370142/36/2017-TPL

Link: Economic Times

GST data: CBEC orders taxmen to intensify efforts against uncooperative taxpayers

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
After receiving ground reports of difficulty faced by tax officials in collecting comparative data from unwilling assessees, the Central Board of Excise and Customs (CBEC) has written to all commissioners urging them to intensify their efforts and challenge the objections raised by taxpayers in sharing information.

After receiving ground reports of difficulty faced by tax officials in collecting comparative data from unwilling assessees, the Central Board of Excise and Customs (CBEC) has written to all commissioners urging them to intensify their efforts and challenge the objections raised by taxpayers in sharing information. As FE reported earlier, CBEC had asked tax commissioners to collect granular data of taxes paid and credit availed by assessees under the goods and services tax (GST) for the July-October period and compare the same with data from the corresponding period of last fiscal. This, the board hopes, will bring out any anomalies in tax payment and utilisation of input tax credits (ITC), including transitional credit, by taxpayers. “When ‘resourceful officers’ are instructed by the special secretary to get the requisite data using their unjustified pressure, he seems to have bureaucratic overreach. Tone and tenor of the letter is such, as if, CBEC has issued an indictment order against chartered accountants on a holiday. Under digital India programme, the government is spending billions to control tax terrorism by eliminating interface of tax officers with taxpayers, here we witness complete negation of such policies,” Rajat Mohan, partner at AMRG & Associates, said.

CBEC has mentioned certain objections raised by the taxpayers in sharing the required information and also suggested ways to counter such resistance. For instance, some assessees have claimed that their chartered accountant (CA) was out of station and hence data couldn’t be shared. In his letter, CBEC member John Joseph said that it was improbable for CAs to go on long leave in the month of December as they would be busy filing I-T returns, hence they should be contacted and data should be collected from them.

“The name of the CAs who are not cooperating with the department along with the name of the name of the companies being handled by them may be intimated to his office,” the board said in the latest missive to field staff.Further, some assessees have said that they come under the jurisdiction of the states’ administration and would not share data with central officials. Responding to this, the letter said: “The list of such assessees who refuse to part with the data, may be indicated and reported to this office. However, it is felt that if the officer is resourceful then he/she should be able to collect the data.”

While CBEC had earlier provided tax filing data collected through the summarised return GSTR-3b with all the commissionerates, it has now also provided them with information on transitional credit claimed by assessees through the TRAN-I forms. “Comparison of data should be possible now as you are being supplied with the GSTN data on trans credit. Please analyse the data, report discrepancies/disputed credit if any along with reasons for the same,” the letter said. Officials tasked with collecting data have said that since assessees are being asked for data informally without being under investigation, the taxpayers are within their right to refuse to share such information. This has presented a twin problem for officials tasked with the exercise, as assessees can’t be forced to share the information while the task itself requires substantial time.

On the basis of data shared with field formations, CBEC wants the top 100 assessees to be selected by each of the commissionerates based on central excise and service tax revenue of FY 17 for revenue analysis. Each official would be given a maximum of two taxpayers for detailed analysis. The analysis would be based on central GST, state GST, integrated GST and compensation cess paid by assessees against pre-GST revenue of the corresponding period. In cases where it is possible, the officials would also take VAT and CST revenue into account. Further, these will include the pattern and quantum of ITC availed and CGST utilised along with transitional credit availed in form TRAN I and its comparison with the pre-GST period. In their analysis, the officials must also note any unusual ITC claimed, which can be detected by comparing the TRAN 1 ITC availed with the average ITC balance during pre-GST. “This analysis should clearly bring out any reason for variation in total duty/tax payable during respective periods,” the official quoted above said.

Additionally, the board has directed the commissioners to collect data only in the excel format, without any change in the format provided by the department. The analysis of the data is to be submitted to the board, which will be taken up for discussion this Saturday when the revenue secretary meets state and central tax officials for a reviewing GST collections. A tax official said that the department wasn’t convinced about the validity of the ITC claims, which was one of the main reasons for lower GST mop-up in October. The department has earlier undertaken verification of large quantum of transitional credit — amounting to Rs.65,000 crore, claimed by assessees.

 

Source: Financial Express

ITR filing date extended to October 31

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

Tax payers who were supposed to file their income tax returns by September 30 now have some more time on their hands. The government has extended the deadline to file income tax returns for such tax payers until October 31.

“The ‘due-date’ for filing Income Tax Returns and various reports of audit prescribed under the Income-tax Act,1961 has been extended from 30th September, 2017 to 31st October, 2017 for all taxpayers who were liable to file their Income Tax Returns by 30th September, 2017,” Ministry of Finance said.

This time tax payers will have to quote their 12-digit Aadhaar number or the 28-digit Aadhaar enrolment number while filing the income tax return.

You will have to keep the Form 16, which you got from their employer handy. If you don’t have it, get it asap. Download the Form 26AS from the Income Tax e-filing website. Form 26AS is a consolidated tax statement which states tax credit statement of all taxes received by the Income Tax Department against your PAN number. You will need it to tally with your Form 16.

Availability of the detail of bank accounts in which the refund is to be credited is a precondition for direct credit of refund in bank accounts. Refund generated on processing of return of income is currently credited directly to the bank accounts of the tax-payers. Non-residents, who are claiming refund but do not have bank accounts in India may furnish details of one foreign accounts in ITR for issuance of refund.

Bank accounts details

A tax payer is also required to disclose his/her bank account number along with the IFSC code. However, dormant accounts which have been in use for the past three years or more need not to be mentioned.

Mandatory disclosure

According to the Income Tax Department now, tax payers have to disclose information of cash deposited in their bank account aggregating to Rs 2 lakh from November 11 to 30 December, 2016.

Ensure that ITR is compliant with amount deposited in bank accounts during the period of demonetisation

Besides that, if any assessee has any unexplained income or investments, he has to report such unexplained income in the new ITR forms and such amount will be taxable at the tax rate of 60 percent plus surcharge and cess.

Tax deductions

  • If you are claiming tax deductions under 80C, you should keep the following details handy:
  • Investment details (eg: LIC, PPF, NSC)
  • Home loan
  • LTA
  • Medical

Consequences of Late filing of Return

According to ClearTax, if there are any taxes which are unpaid, penal interest at 1 per cent per month or part thereof will be charged till the date of payment of taxes .Also Penalty of Rs 5,000 may be charged. The penalty is not levied in all cases and depends upon the circumstances of the case.

For returns of FY 2017-18 and onwards, penalty of Rs 5,000 will be charged for returns filed after due date but before 31st December. If returns are filed after 31st December, a penalty of Rs 10,000 shall apply. However, penalty will be Rs 1,000 for those with income upto Rs 5 lakh.
Who has to file?

Every person whose gross total income exceeds the taxable limit must file an Income Tax Return (ITR)

Who has to file?

Every person whose gross total income exceeds the taxable limit must file an Income Tax Return (ITR)

Who has to e-file?

  • Individuals & HUF having total income exceeding Rs 5 lakh or claiming any refund in the return (excluding individuals of the age of 80 years or more who are furnishing return in Form no. ITR-1 or ITR-2).
  • Individual or HUF, being a resident other than not ordinarily resident, having any foreign asset/income or claiming any foreign tax relief.
  • Persons filing ITR in Form no. 3, 4, 5 or 7.

 

Source: Business Today