UPDATES & AMENDMENTS TO BE TAKEN IN CONSIDERATION FOR FILING RETURN FOR ASST YEAR 2017-2018 ONWARDS
1. MANDATORY TO FILE ITR : It is mandatory to file Income Tax Return if your income (other than company) is more than Rs. 2,50,000 before claiming any deductions (except for senior or super senior citizen).
2. CRITERIAS FOR ITR 1 & ITR 2: ITR-1 is to be filed by an assessee having total income below Rs. 50 lakhs. ITR-2 needs to be e-filed in case total income is greater than or equal to Rs. 50 lakhs.
3. REPORTING OF CASH DEPOSITED DURING DEMONETIZATION PERIOD: One must report, Cash deposited during 09.11.2016 to 30.12.2016”, if >= Rs 2 lakhs.
4. INCREASE IN DEDUCTION LIMIT U/S 80GG: Deduction in rent paid limit is increased from RS 24000 to RS 60000 U/S 80 GG.
5. 10% TAX ON DIVIDEND INCOME IF SUCH INCOME EXCEEDS INR 10 LAKHS: When dividend income from Indian company exceed RS 10,00,000 then it is shown separately under other income schedule, if divined income exceed Rs. 10,00,000, than dividend income shall be taxable @10% u/s 115BBDA in the hands of the recipient of dividend.
6. Deduction with respect to Interest on loan taken for Residential Property u/s 80EE is now available.
7. WITHDRAWAL FROM NPS TO BE TAXABLE :Withdrawal of amount from New Pension Scheme is taxable to the extent of 60%.
8. Holding period of unlisted shares (equity or preference share) has been reduced from 36 months to 24 months for short-term capital asset.
9. EMPLOYER TO UPLOAD FORM 16 FOR PERIOD OF EMPLOYMENT WITH HIM ONLY: Employer would be issuing Form 16 for the income from current employment only. Hence new joiners/Inter Entity Transfers should ensure to upload/enter Form 16(s) from their previous employer(s)/entities. Ensure reporting/verifying all incomes in mentioned in Form 26AS.
10. OFFSHORE EMPLOYEES TO DECLARE GLOBAL INCOME IN INDIA: Onsite employees should declare global income in India and claim the DTAA relief if they are resident during the financial year.
11. NRI employees should claim refund on taxes deducted on salary, fixed deposit, capital gain etc. during the financial year by filing return.
12. Higher Income employees, i.e., those with income above Rs. 50 lakhs, should declare their assets and liabilities in the return.
With effect from 1-04-2017 belated Income Tax Return for the Asst Year 2017-2018 and onwards can be filed at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
CONSEQUENCES OF LATE FILLING THE INCOME TAX RETURN
2) When regular books of accounts are maintained by the tax payer, the return is accompanied by copies of-
Manufacturing account, trading account ,profit and loss account or, any income and expenditure account or any similar accounts and Balance Sheet.
3) where the accounts of the taxpayer have been audited, the return is accompanied by copies of the audited profit and loss account and balance sheet and the auditor report
4) where regular books of accounts are not maintained by the taxpayer, the return is accompanied by a statement of turnover or, gross receipts, gross profit, expenses and net profit of the business or profession and also disclosing the amount of total sundry debtor, sundry creditors, stock in trade, and cash balance at the end of the previous year.
1. MANDATORY TO FILE ITR : It is mandatory to file Income Tax Return if your income (other than company) is more than Rs. 2,50,000 before claiming any deductions (except for senior or super senior citizen).
2. CRITERIAS FOR ITR 1 & ITR 2: ITR-1 is to be filed by an assessee having total income below Rs. 50 lakhs. ITR-2 needs to be e-filed in case total income is greater than or equal to Rs. 50 lakhs.
3. REPORTING OF CASH DEPOSITED DURING DEMONETIZATION PERIOD: One must report, Cash deposited during 09.11.2016 to 30.12.2016”, if >= Rs 2 lakhs.
4. INCREASE IN DEDUCTION LIMIT U/S 80GG: Deduction in rent paid limit is increased from RS 24000 to RS 60000 U/S 80 GG.
5. 10% TAX ON DIVIDEND INCOME IF SUCH INCOME EXCEEDS INR 10 LAKHS: When dividend income from Indian company exceed RS 10,00,000 then it is shown separately under other income schedule, if divined income exceed Rs. 10,00,000, than dividend income shall be taxable @10% u/s 115BBDA in the hands of the recipient of dividend.
6. Deduction with respect to Interest on loan taken for Residential Property u/s 80EE is now available.
7. WITHDRAWAL FROM NPS TO BE TAXABLE :Withdrawal of amount from New Pension Scheme is taxable to the extent of 60%.
8. Holding period of unlisted shares (equity or preference share) has been reduced from 36 months to 24 months for short-term capital asset.
9. EMPLOYER TO UPLOAD FORM 16 FOR PERIOD OF EMPLOYMENT WITH HIM ONLY: Employer would be issuing Form 16 for the income from current employment only. Hence new joiners/Inter Entity Transfers should ensure to upload/enter Form 16(s) from their previous employer(s)/entities. Ensure reporting/verifying all incomes in mentioned in Form 26AS.
10. OFFSHORE EMPLOYEES TO DECLARE GLOBAL INCOME IN INDIA: Onsite employees should declare global income in India and claim the DTAA relief if they are resident during the financial year.
11. NRI employees should claim refund on taxes deducted on salary, fixed deposit, capital gain etc. during the financial year by filing return.
12. Higher Income employees, i.e., those with income above Rs. 50 lakhs, should declare their assets and liabilities in the return.
DUE DATE OF FILLING OF RETURN OF INCOME
S.
N.
|
Particulars
|
Due
date
|
1
|
Assessee
required to furnish a report u/s 92E
|
30-11-2017
|
2
|
Any
other corporate assessee
|
30-09-2017
|
3
|
Non-Corporate
assessee, ( Partnership firm, Sole prop
firm) whose accounts are required to be audited u/s 44AE Income Tax Act.
|
30--09-2017
|
4
|
Working
Partners of Partnership Firms.
|
30-09-2017
|
5
|
For
any other assessee
|
31-07-2017
|
With effect from 1-04-2017 belated Income Tax Return for the Asst Year 2017-2018 and onwards can be filed at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
CONSEQUENCES OF LATE FILLING THE INCOME TAX RETURN
· Loss (other than loss under the head "Income from house property ") cannot be carried forward.
· Exemptions/deductions under section 10A ,10B,80-IA ,80-IB,80-IAB,80-IC,80-ID 80-IE will not be available.
· Interest under section 234A @1%per month applicable on net outstanding tax due amount .
LATE FEE FOR LATE FILLING OF INCOME TAX RETURN : No late fees apart from interest u/s 264A, 234B & 234C shall be applicable for late filing of ITR for Asst Year 2017-18.
Late fees/penalty shall applicable from AY 2018-2019.
LATE FEE INCOME TAX RETURN FILING ASSESSMENT YEAR2018-2019
· Exemptions/deductions under section 10A ,10B,80-IA ,80-IB,80-IAB,80-IC,80-ID 80-IE will not be available.
· Interest under section 234A @1%per month applicable on net outstanding tax due amount .
LATE FEE FOR LATE FILLING OF INCOME TAX RETURN : No late fees apart from interest u/s 264A, 234B & 234C shall be applicable for late filing of ITR for Asst Year 2017-18.
Late fees/penalty shall applicable from AY 2018-2019.
LATE FEE INCOME TAX RETURN FILING ASSESSMENT YEAR2018-2019
· In case your taxable income did not exceed Rs 5 lakhs then amount of fee would be restricted to Rs 1000
· In case your taxable income exceed Rs 5 lakhs in a year you will have to pay a fee Rs 5000 if you file your income tax return beyond 31st July but by 31st December of the assessment year.
· For filling the return of income beyond 31st December but by 31st March you will have to pay a fee of Rs 10000.
· In case your taxable income exceed Rs 5 lakhs in a year you will have to pay a fee Rs 5000 if you file your income tax return beyond 31st July but by 31st December of the assessment year.
· For filling the return of income beyond 31st December but by 31st March you will have to pay a fee of Rs 10000.
DEFECTIVE RETURN
Under section 139(9) provides various situations in which the return of income filed by the taxpayer shall be treated as defective return.
The taxpayer shall rectify such Defective Return within a period of 15 days of such intimation subject to the following conditions:
1) A certificate for tax deducted or collected was not furnished under section 203 or section 206C to the person furnishing for income & such Certificate is produced with in a period of two years specified under section 155 (14)
Under section 139(9) provides various situations in which the return of income filed by the taxpayer shall be treated as defective return.
The taxpayer shall rectify such Defective Return within a period of 15 days of such intimation subject to the following conditions:
1) A certificate for tax deducted or collected was not furnished under section 203 or section 206C to the person furnishing for income & such Certificate is produced with in a period of two years specified under section 155 (14)
2) When regular books of accounts are maintained by the tax payer, the return is accompanied by copies of-
Manufacturing account, trading account ,profit and loss account or, any income and expenditure account or any similar accounts and Balance Sheet.
3) where the accounts of the taxpayer have been audited, the return is accompanied by copies of the audited profit and loss account and balance sheet and the auditor report
4) where regular books of accounts are not maintained by the taxpayer, the return is accompanied by a statement of turnover or, gross receipts, gross profit, expenses and net profit of the business or profession and also disclosing the amount of total sundry debtor, sundry creditors, stock in trade, and cash balance at the end of the previous year.
