Compliance Calendar for May, 2017

Compliance Calendar for May, 2017

  1. 6th May, 2017
    • Service Tax payment for the month of April, 2017 (exception: Individuals, Proprietors and Partnership firm)
  2. 7th May, 2017
    • TDS and TCS to be deposited for the month of April, 2017
  3. 15th May, 2017
    • Last date for Quarterly Statement of TCS (Form No. 27EQ)
  4. 30th May, 2017
    • Last date for Quarterly Statement of TDS (Form No. 26QB)
    • Quarterly TCS statement to be collected for Quarter ending March, 2017 (Form No. 27D)
    • Last date for filing Annual Return (form 11) for LLPs
  5. 31st May, 2017
    • Annual Certificate of TDS to employees in respect of salary paid and tax deducted during 2016-17 (Form Nos. 12BA and Form 16)
Now Income Tax Proceedings to happen Digitally…!!!

Now Income Tax Proceedings to happen Digitally…!!!

All Income Tax department-related proceedings between the taxpayer and the taxman from the new fiscal will be conducted online, the CBDT declared. This is as part of its initiative to minimise human interface between the assessee and the Assessing Officer (AO) thereby reducing complaints of harassment and corruption. A new link or window called ‘e-proceeding’ will soon be introduced on the e-filing website of the department, which is used by taxpayers to file their Income Tax Returns (ITRs) at present.

The website has been linked to the internal online business application portal of the tax department so that the Assessing Officer (AO) can undertake the new regime where a taxpayer will not have to visit the I-T office for regular issues like scrutiny issues and grievances related to his or her refunds or tax filing, among others.

A notification in this regard was today issued by the Central Board of Direct Taxes (CBDT), the policy-making body of the tax department. The CBDT directive added the new procedure of e-communication is “applicable to all proceedings under the Income Tax Act, 1961 under this notification as enabled from time to time”.

The new regime of e-communication is however voluntary and a taxpayer can take a call on whether to conduct his dealing with the taxman over the e-system or through the existing procedure of manual submissions of documents by visiting the I-T department office.
“The functionality to conduct e-proceeding will be available for all types of notice, questionnaire, letter issued under various sections of the I-T Act. For example, hearing notice for assessment proceedings under sections 143(3), 147, 263 or 264 etc, proceedings under section 154 and hearing under various sections for penalty.

“Proceedings in first appeal for hearing notice, proceedings for granting or rejecting registration applications under section 12AA, 80G under exemptions, seeking clarification for resolving e-nivaran grievances etc. can also be conducted using the e-proceeding functionality using electronic communication of notice or any document by any Income Tax authority and electronic submission of response by assessee,” it said.

All such e-communication by the taxman to the taxpayer will bear the official email of the Assessing Officer (AO) with the email domain being ‘@incometax.gov.in’.

It added “on delivery of the notice, questionnaire or letter to the assessee under e-proceeding tab in the e-filing website of the department – http:// incometaxindiaefiling.gov.in – the assessee will be able to submit his response along with attachments on the e-filing website”.

It added that timelines will also be set for the new process to work smoothly and with all legal sanctity to such processes. “In order to facilitate a final date and time for e-submission, the facility to submit a response will be auto closed seven days prior to the Time Barring (TB) date, if any. If there is no statutorily prescribed TB date, then the Income Tax authority can, on his volition, close the e-submission whenever the compliance time is over or when the final order or decision is under preparation to avoid last minute submissions.
“However, Income Tax authority can also re-enable the e-submission by assessee in both TB or non-TB situations,” it added.

“The CBDT had run a pilot project in this regard sometime back which has paved the way for this absolutely new regime where the taxman and the taxpayer do not have an interface. A majority of tax dealings with the taxpayer in new financial year (2017-18) will be done through the new system,” a senior I-T officer said. The CBDT said a taxpayer will always have the option of coming out of the e-proceeding system at any point of time and go for the manual mode.

Detailing the procedures for the new paperless system, it added: “Upon closure or completion of any proceeding under this procedure, the final order, letter or document will be delivered to the assessee under e-proceeding tab in the e-filing website of the department. If need be, the same may also be delivered by post. “In case the assessee opts for manual mode in the middle of e-proceedings on the e-filing website, further proceedings shall be conducted in manual mode,” it said.

The assessee will also be able to view the entire history of notices, questionnaires, letters, orders on the e-filing website and of his responses under the new system. The new e-proceeding procedure, the CBDT said, is a part of e-governance initiative to facilitate a simple way of communication between the department and the taxpayer, through electronic means, without the necessity of the taxpayer to visit the I-T office.

Clarification on Cash Receipt of Rs. 2 Lakh or More w.e.f. 01.04.2017

Clarification on Cash Receipt of Rs. 2 Lakh or More w.e.f. 01.04.2017

Finance Bill 2017 proposed to insert sec. 269ST in the Income Tax Act to provide that no person shall receive an amount of Rupees 2 Lakh or more w.e.f. 01st April, 2017:

  • in aggregate from a person in a day;
  • in respect of a single transaction; or
  • in respect of transaction relating to one event or occasion from a person,

other-wise than by an account payee cheque or account payee bank draft or electronic clearing system through a bank account.

Meaning of Sec. 269ST

1. in aggregate from a person in a day

If a person received sum of Rs. 2.15 Lakh in cash for different bills or Rs. 1 Lakh and Rs. 1.15 Lakh, then penalty is levied.

2. in respect of a single transaction; or

If there is a single bill of Rs. 2.50 Lakh and a person received cash on different days of Rs. 1.20 Lakh and Rs. 1.30 Lakh, then also penalty is levied.

3. in respect of transaction relating to one event or occasion from a person,

If marriage is one occasion and a person receives sum of Rs. 2.75 Lakh for the said occasion the penalty is levied.

4. Withdrawal of amount from own bank account.

If a person withdraws in a day amount of Rs. 2 lakh or above, the penalty is not levied; as per Press Release issued by CBDT dated 5th April, 2017

5. To whom does section 269ST applies?

To any person receiving cash above Rs. 2 Lakh, except Government, banking company, post office savings bank or co. operative bank.

6. Whether penalty is applicable for regular receipts only?

Any type of amount or Rs. 2 Lakh or above received in cash whether capital or revenue nature, irrespective of purpose of accepting amount i.e., whether business purpose or personal purpose or as trustee, custodian etc. Sec. 269ST is applicable.

7. What is the Penalty for Contravention of Section 269ST?

100% penalty on receiver of amount.

Form 15G and 15H for FY2016-17

Form 15G and 15H for FY2016-17

When your total income is less than Rs 2,50,000, no tax is payable by you. In such a case, no TDS should be deducted on your income. With the help of Form 15G and Form 15H you can inform your banker that your income is less than the minimum exempt income and ask them not to deduct TDS on interest earned by you.

Download Form 15G and Form 15H

Who can fill Form 15G

  • you are Less than 60 years old
  • you are individual or HUF
  • Resident in India
  • Tax calculated on your Total Income is nil
  • Total interest income for the year is less than the minimum exemption limit of that year, which is Rs 2,50,000 for financial year 2015-16.

 

How to Fill Form 15G

  1. Name of Assesse (Declarant) – Enter your name as per income tax records.
  2. PAN of the assesse – PAN number as per your PAN card
  3. Status – Whether you are an individual or HUF
  4. Previous Year – current financial year for which you are filing up the form
  5. Residential Status – this form can only be filled by Residents. Check your residential status here.
  6. Flat/Door/Block No – details of your address
  7. Name of Premises – details of your address
  8. Road/Street/Lane – details of your address
  9. Area/Locality – details of your address
  10. Town/City/District – details of your address
  11. State – details of your address
  12. PIN – details of your address
  13. Email
  14. Telephone no
  15. (a) whether assessed to tax under the income tax act, 1961? – If your income was above taxable limit in any of the past 6 years, answer this question with ‘yes’.

(b) If yes, latest assessment year for which assessed – mention the latest year in which your income was above taxable limit.

  1. Estimated income for which declaration is made – sum of income on which TDS should not be deducted.
  2. Estimated total income of the previous year in which income mentioned in column 16 to be included – Calculate your total income from all sources, salary, stipend, interest income, any other income that you have earned during the year. Include the income mentioned in 16. above.
  3. Details of Form 15G other than this form filed during the previous year, if any; total number of form no 15G filed and aggregate amount of income for which form 15G filed – If you have filled Form 15G in the past, mention the total number of Form 15G filed. Also provide the total income for which Form 15G was filed
  4. Details of income for which declaration is filed; Identification number of relevant investment/account etc, Nature of Income, Section under which tax is deductible, Amount of income – Provide fixed deposit account number, recurring deposit details details of NSCs, life insurance policy number etc. (many of these are chargeable to tax under section 56 of the income tax act).
  5. Signatures – mention your capacity when signing on behalf of an HUF or AOP

 

Do not submit the form if such income has to be Clubbed with the income of another person

Form 15G should not be submitted if your income has to clubbed with someone else. Interest income from money invested in a FD for a non-earning spouse or a child, has to be clubbed with the income of the depositor. In such a case Form 15G cannot be submitted. PAN of the depositor should be provided and TDS should be deducted in the name of the depositor.

 

Submitting false information in the form

If incorrect information is submitted in this form, the signatory may be prosecuted under the provisions of the income tax act.

 

Frequency of submission

The new Form 15G has to be submitted at the start of every quarter

 

Last Date for submission

Last date for submission of 15G and 15H for Financial year 2016-17 is 30th April, 2017 and can be filed online only.

Income Tax Returns for FY 2016-17

Income Tax Returns for FY 2016-17

India is now on path of becoming Digital India and it is evident from the way our government works.

  • For FY 2016-17, new ITR forms have been released by Income Tax Department on 31st March, 2017 itself.

From ITR of FY 2016-17 for filing returns of Income:

  • Aadhar number is must
  • Mobile Number and e-mail id of the person is to be shared
  • Income tax department has started to do communication with individuals through e-mail primarily, thus everyone needs to give e-mail id of their own and which is being used on regular basis

EVC (electronic verification code)

  • It is a 10 digit alphanumeric code which can be generated through e-Filing portal and is valid for 72 hours).
  • An EVC code can be generated through Net Banking,Bank Account number and now through NSDL Demat account
  • EVC code reduces the requirement of signing the acknowledgement and sending the same to CPC.

Due Dates for filing of returns

  • Audit cases – 30th September, 2017
  • Non Audit cases – 31st July, 2017
Statutory Timelines for April, 2017

Statutory Timelines for April, 2017

  1. 15th April, 2017
    • Income Tax
      • Due date for 15G/H received during from 01st Jan,2017 to 31st Mar,2017
    • PF
      • Monthly EPF Return and PF Payment for the month of March, 2017
  2. 30th April, 2017
    • Income Tax
      • Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of March, 2017.
      • Due date for deposit of Tax deducted by an assessee other than an office of the Government for the month of March, 2017.
      • Due Date for filing of form 15G and 15H