Salaried taxpayers to get SMS alerts on TDS deductions

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As many as 2.5 crore salaried taxpayers will now receive SMS alerts from the Income Tax department regarding their quarterly TDS deductions.

Finance Minister Arun Jaitley on Monday launched the SMS alert service for Tax Deducted at Source (TDS) for salaried class and the CBDT will soon offer this facility on a monthly basis.

Briefing reporters about the facility, Jaitley said salaried class cannot afford to pay tax twice or indulge in litigations and hence they should be kept updated about their TDS deductions.

“Hence taxpayers will benefit if they receive information through use of technology. So they can match the office salary slip and the SMS and at the end of the fiscal he will be clear about any possible tax dues,” Jaitley said.

He asked the CBDT to work towards making the grievance redressal system for TDS mismatch online so that there is no interface between the taxpayer and the tax department.

Jaitley said e-Nivaran is working well for taxpayers and the CBDT is taking several tax payer friendly initiative.

The CBDT will soon extend this SMS facility to another 4.4 crore non-salaried taxpayers.

“The frequency of SMS alerts will be increased, once the process for filing TDS returns is streamlined to receive such information on a real time basis,” the CBDT said.

CBDT chairperson Rani Singh Nair said the tax department is encouraging people to register their mobile number on the e-filing website.

She said a taxpayer will initially receive a welcome message from the CBDT informing him about the facility and after that each assessee would be sent messages informing them about their respective TDS deductions.

The new step is an effort by the I-T department to directly communicate deposit of tax deducted through SMS alerts to salaried taxpayers. In case of a mismatch, they can contact their deductor for necessary correction.

Besides, SMS alerts will also be sent to deductors who have either failed to deposit taxes deducted to e-file their TDS returns by the due date.

Source: http://timesofindia.indiatimes.com/business/india-business/Salaried-taxpayers-to-get-SMS-alerts-on-TDS-deductions/articleshow/55034864.cms

CAG may audit IDS, not individual declarations

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The Comptroller and Auditor General of India (CAG) may audit the just ended black money disclosure scheme for the process followed and how well it performed, but will not get into the disclosures made.

As much as Rs 65,250 crore of undeclared assets were declared through 64,275 declarations through the one-time four-month compliance window provided under the Income Disclosure Scheme (IDS) that ended on September 30.

“The information filed under the IDS is confidential and will neither be shared with any law enforcement agency nor any enquiry be launched by the I-T department,” an official said.

But the official auditor CAG may choose to do a performance audit of the scheme as a whole, the official said.

“It can audit the process followed in going about the scheme as well as how well it did. But no specific information on declaration made will either be gone into by the auditor or shall it be given,” he said.

The CAG had previously audited the Service Tax Voluntary Compliance Encouragement Scheme for the very same purpose.

The last tax amnesty scheme of 1997 – The Voluntary Disclosure of Income Scheme (VDIS), too, was audited by the CAG.

In its August 2000 report, CAG had found gaping holes and glaring defects in the VDIS saying it was drafted “with a number of lacunae which in turn, were compounded by CBDT circulars, clarifications and press briefings that benefited the declarants”.

The implementation of VDIS, it said, left a number of gaps in the procedural matters with distinct impact on revenue realisation.

The official said no adverse action shall be taken by the Financial Intelligence Unit or the Income-Tax department solely on the basis of the declarations made under IDS.

Also, no enquiry or investigation shall be launched on undisclosed income and assets declared under the scheme even if evidence is found subsequently during search or survey proceedings.

Specific information on declarations will not be shared with anyone including investigating agencies like CBI, he added.
Source: http://economictimes.indiatimes.com/articleshow/54639314.cms

File income tax return (ITR) even if your income is not taxable

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Many people think it an avoidable headache to file income tax returns, when their income falls below the taxable limit, or when tax is deducted at source or when no taxes are due. They also unnecessarily fear some notice will come from Income Tax Department every year, once they have started filing income tax return.

Here are the benefits of filing the income tax return that show you that it’s always better to file the return every year, even if your income  is not taxable.

  1. Helps as Standard Income Proof

In simple words, a tax return is a summary document or declaration about the results of all your financial transactions undertaken during the tax year. It consolidates the income under all sources and calculates the taxes due after allowing all eligible deductions.

ITR is considered and accepted by various agencies as a proof of your income, not only in India but also globally. If you are looking for higher education or employment abroad, ITR is the largely accepted income proof.

PAN – Permanent Account Number, issued by the Income Tax authority is not only a prerequisite for filing ITR but is also now mandatory for all financial transactions – from opening a bank account, or purchasing mutual funds to real estate for investment. So it makes sense to get yourself one and file the tax return.

  1. Helps Loan application:

At the time of applying for a home loan or vehicle loan or education loan, most banks ask the applicant to furnish copies of tax returns for the past 2-3 years. This helps banks understand your financial position and ability to repay the loan. Providing a copy of returns receipts helps in faster approval of your loan application

Apart from a good credit history (or past repayment track), the fact that you are filing your ITR regularly gives you speedier access to credit and at better terms, although not necessarily a larger line of credit, but surely a better rate.

It also provides the impression to the lender that you are a law abiding citizen and will repay the loan within time.

3. Helps claiming your tax refund:

Filing of ITR also helps your claiming of Tax Refund! In the case of salaried employees or those who have sold property, where Tax is deducted at source at standard rate, you can claim refund if the tax outgo has been more than the actual tax payable. You must file your tax returns if you wish to claim tax refunds. Not doing so would lead to forgoing the refund.

Generally, your employer deducts taxes on your estimated income based on the declaration that you have submitted. Apart from this, taxes are also deducted at source on various other incomes such as interest, commission, rent, and others, at a standard rate. When you club all these incomes with your salary, and also consider tax deductions as applicable to you, the final tax rate applicable may turn out to be different from the TDS rate. Owing to this you may either have to pay more tax or expect a refund.

Thus, filing ITR is not always about paying tax. It can be used as a means to reduce your tax liability!

  1. Helps Carry forward of losses:

Income tax laws allow you to carry forward and set off certain losses (losses from business income, depreciation, capital gains) against future gain or income. These losses can be carried forward for eight consecutive years immediately succeeding the year in which the loss is incurred. Even if you have taxable income this year, you might have losses to carry forward that can be adjusted against gains in later years when you actually have higher incomes.

  1. Visa processing:

If you are planning to immigrate to another country or explore an overseas job opportunity, then prepare yourself in advance. Most embassies and consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application. This is especially applicable when applying for visa for the US, the UK, Canada or Europe.

  1. Helps in Statutory Compliance:

This also helps in statutory compliance, when you need to file tax returns.

The income tax department requires you to file a tax return in case your gross total income exceeds Rs.2.5 lakh (Rs.3 lakh for tax payers older than 60 years and Rs.5 lakh for those older than 80 years) in the financial year. Further, even if you do not have taxable income but if you qualify as a ‘resident’ individual and have any asset or financial interest in an entity located outside of India, then also it is mandatory for you to file.

What if you don’t file your taxes? If you are required to file your returns but miss it, then the tax officer may impose a penalty of up to Rs.5,000 (under section 271F). And if you owe some taxes and still don’t file it, then you may be liable to pay additional interest (section 234A), along with other penalties for avoiding taxes.

CBDT extends due date for filing of Income Tax Returns

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The Central Board of Direct Taxes (CBDT) has announced extension for the due date for filing of Income tax returns by tax payers whose accounts are required to be audited under the Income Tax Act is the 30th September of the following year.

The tax payers whose business receipts exceed by Rs 1 crore or professional receipts exceed Rs 25 lakh during the previous year 2015-16 are required to file an Income Tax return accompanied by an audit report by the above mentioned due date.

However, taking into consideration that the last date for making declarations under the Income Declaration Scheme 2016 is also 30th September, 2016, the Central Board of Direct Taxes has decided to extend the last date for such returns which were due on  September 30, 2016 to October 17, 2016 in order to remove inconvenience and to facilitate ease of compliance.

The Order of CBDT vide F.No.225/195/2016-ITA-H dated 9 th September, 2016, under Section 119 of the Income Tax Act,1961and the Press release from the Ministry of Finance extending the due date to 17 October, 2016 is as below.

 

F.No.225/195/2016-ITA-H
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, ITA.II Division New Delhi, the 9th September, 2016

Order under Section 119 of the Income-tax Act, 1961

The last date for making declarations under the Income Declaration Scheme 2016 is 30th September, 2016 which coincides with the last date of filing Income-tax returns by the tax payers whose accounts are audited and who are required to furnish the returns of income for Assessment Year 2016-17 by 30th September, 2016 as per provisions of section 139 (1) of Income tax Act, 1961.

In order to remove inconvenience and to facilitate ease of compliance, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income-tax Act, 1961, hereby extends the ‘due-date’ for furnishing such returns of Income from 30th September, 2016 to 17th October, 2016, in case of tax payers throughout India, who are liable to furnish their Income-tax return by the said ‘due-date’.

(Deepshikha Sharma)

Director to the Government of India

============================================

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

 

New Delhi, 9th September, 2016

 

Press Release

 

Sub :- CBDT Extends due date for filing of Income Tax Returns – reg

 

The due date for filing of Income tax returns by tax payers whose accounts are required to be audited under the Income Tax Act is the 30th September of the following year. The tax payers whose business receipts exceed Rupees One Crore or professional receipts exceed Rupees twenty-five Lakh during the previous year 2015-16 are required to file an Income Tax return accompanied by an audit report by the above mentioned due date.

 

However, taking into consideration that the last date for making declarations under the Income Declaration Scheme 2016 is also 30th September, 2016, the Central Board of Direct Taxes has decided to extend the last date for such returns which were due on 30th September, 2016 to 17th October, 2016 in order to remove inconvenience and to facilitate ease of compliance.

 

(Meenakshi J Goswami)

Commissioner of Income Tax

(Media and Technical Policy)

Official Spokesperson, CBDT.

Source: Central Board of Direct Taxes, Government of India

Tax dept not to take action on cash deposits made after declaring income under IDS

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The government has said no adverse action will be taken by Financial Intelligence Unit or the income-tax department solely on the basis of the information regarding cash deposit made consequent to the declaration under the black money scheme.

 

Credit for unclaimed tax deducted at source made on declared income shall be allowed and no capital gains tax or TDS (tax deducted at source) shall be levied on transfer of declared benami property from benamidar to the declarant without consideration.

 

To reassure people about the Income Declaration Scheme, 2016, which will close on September 30, the Central Board of Direct Taxes has come out with sixth set of clarifications in form of frequently asked questions.

 

It has again assured those wanting to declare unaccounted assets or income that information in respect of a valid declaration would be confidential and not be shared with any law enforcement agency nor shall be enquired into by the income-tax department itself.

 

The scheme provides an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets. The scheme came into effect on June 1, 2016 and is open for declarations up to September 30, 2016.

 

A total tax of 45 per cent including surcharge and penalty has to be paid.

 

The amount payable under the scheme can be deposited in instalments. As per the latest clarification, assets declared under the scheme are to be valued at cost of acquisition or at fair market price as on June 1, 2016 as determined by the registered valuer, whichever is higher.

 

However, an option for valuation of registered immovable property on the basis of stamp duty value of acquisition adjusted with the Cost Inflation Index has also been provided.

 

The amount of fictitious liabilities recorded in audited balance sheet and not linked to acquisition of an asset can be disclosed under the scheme as such. The period of holding of declared registered immovable assets shall be taken on the basis of the actual date of registration.

 

The valuation report obtained by the declarant from a registered valuer shall not be questioned by the department. However, the valuer’s accountability will remain, it said.

Source: http://economictimes.indiatimes.com/wealth/tax/tax-dept-not-to-take-action-on-cash-deposits-made-after-declaring-income-under-ids/articleshow/54022802.cms

IDS: CBDT issues circular endorsing validity of e-declarations

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The CBDT has issued an order endorsing the legal validity of the e-declarations made under the ongoing domestic black money window, known as the Income Declaration Scheme (IDS).

With only a month left for the IDS to close on September 30, the Central Board of Direct Taxes (CBDT) said for those entities who make declarations of their domestic untaxed assets in the online mode, the Commissioner rank officer of its Central Processing Centre (CPC) in Bengaluru will be “deemed” as the authority for receiving such declarations under the relevant sections of the I-T Act.

“In continuation to Circular No 19 of 2016, dated 25th May, 2016, the Commissioner of Income-tax, Centralised Processing Centre, headquartered at Bengaluru shall exercise the concurrent powers and functions in respect of the declaration referred to in section 183 of the Finance Act, 2016 which has been furnished electronically under digital signature and shall also be deemed to be the Principal Commissioner or the Commissioner for the purposes of section 186 of the Finance Act, 2016 in respect of such declaration,” the CBDT said.

The CPC based in Bengaluru is the nodal wing of the tax department to receive online filings and Income Tax Returns.

There are two options to file black money declarations under the one-time IDS, one by filling up physical form before a Principal Commissioner of Income Tax in any part of the country and the other by the official e-filing portal of the I-T department.

“The circular has been brought out to endorse the legal validity of IDS declarations made by the e-filing website. It was issued keeping in mind the legal requirement,” a senior official said.

The CBDT, till now, has issued five sets of clarifications or frequently asked questions (FAQs) containing answers to various questions on the implementation of the IDS.

The government, sometime back, had extended the deadline for payment of tax and penalty under IDS and allowed declarants to pay the amount in three instalments by September 30 next year.

The first instalment of 25 per cent under the IDS 2016 will have to be paid by November 2016, followed by another 25 per cent by March 31, 2017.

The remaining amount will have to be paid to the exchequer by September 30, 2017.

Earlier the tax, surcharge and penalty under the black money disclosure window were required to be paid by November 30.

The scheme was announced by the government with an aim to bring out black money from the domestic economy.

The government had come out with a similar scheme for Indians holding undisclosed income abroad.

The scheme will apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining to financial year 2015-16 or earlier.

Source: http://www.thehindu.com/business/Economy/ids-cbdt-issues-circular-endorsing-validity-of-edeclarations/article9056076.ece