7. Availing benefit of reduced GST Rates by real estate developers or builders The GST Council in its 33rd and 34th meeting had recommended the GST rate of 1% in case of affordable houses and 5% in other cases, without input tax credit. The promoters shall be given an one -time option to continue to pay tax at the old rates (i.e., at 8% or 12% with ITC) on ongoing projects (if construction and actual booking have started before 01-04-2019) which have not been completed by March 31, 2019.The option shall be exercised once within a prescribed time frame and where the option is not exercised within the prescribed time limit, new rates shall apply.
However, new tax rates in real estate sector are recommendations of the GST Council and date of applicability of new tax rates have not been notified yet.
8. Due date to file Form ITC-04 for Goods sent to Job-worker.
The last date to furnish a declaration in Form GST ITC-04 in respect of goods dispatched to the job-worker or received from a job-worker during the period from July, 2017 to December, 2018 is March 31, 2019
9. Benefits related to Specific Industry
(a) Money changer (Forex Dealer); or
(b) Air travel agent; or
(c) Dealer of second hand goods opting for ‘Margin Scheme’; or
(d) Taxpayer engaged in Life insurance business
Are given the option to determine the value of such supply as per rule 32 of the CGST Rules, 2017. It is suggested that the above mentioned eligible registered persons intended to determine the value of their supplies as per the valuation rules can exercise the option at the beginning of the Financial Year that is on or before April 1, 2019.
10. Availing Input tax credit by Banks, Financial Institutions or NBFC. Banks or financial institution or NBFC have been given an option to avail 50% of the eligible Input tax credit on inputs, capital goods and input services. It is suggested that this option to be exercised at the beginning of the F.Y. that is on or before April 1, 2019 as the option once exercised cannot be withdrawn during the remaining part of the financial year.
11. Following Amendment Acts made applicable from February 1, 2019
(a) CGST (Amendment) Act, 2018
(b) IGST (Amendment) Act, 2018
(c) UTGST (Amendment) Act, 2018
(d) GST (Compensation to States) Amendment Act, 2018
Some of the Major changes are as follows:
(a) Manner of utilization of ITC has been amended by inserting Section 49A in CGST Act. Now the credit of IGST needs to utilized first fully for the payment of IGST, CGST, SGST and UTGST respectively.
(b) Section 9(4) relating to reverse charge applicability on purchases made by registered person from unregistered person is replaced and now it applies to specific class.
(c) Now only e-commerce operators who are required to collect tax at source under Section 52 of the CGST Act, 2017 are mandatorily required obtain GST registration.
(d) Composition dealers as per section 10 of CGST Act, 2017 are allowed to supply services to the extent higher of 10% of the turnover in the preceding financial year or Rs. 5 lakhs.
(e) Multiple GST registrations within same state for each place of business has been allowed. The concept of business vertical is done away with.
(f) Issue of consolidated debit/credit note is allowed in respect of multiple invoices issued in a financial year rather than single debit/credit note in respect of each invoice.
(g) The receipt of payment in Indian rupees which is permitted by Reserve Bank of India for services exported out of India, will be covered in the definition of ‘export of services’ as per the IGST Act, 2017.
However, new tax rates in real estate sector are recommendations of the GST Council and date of applicability of new tax rates have not been notified yet.
8. Due date to file Form ITC-04 for Goods sent to Job-worker.
The last date to furnish a declaration in Form GST ITC-04 in respect of goods dispatched to the job-worker or received from a job-worker during the period from July, 2017 to December, 2018 is March 31, 2019
9. Benefits related to Specific Industry
(a) Money changer (Forex Dealer); or
(b) Air travel agent; or
(c) Dealer of second hand goods opting for ‘Margin Scheme’; or
(d) Taxpayer engaged in Life insurance business
Are given the option to determine the value of such supply as per rule 32 of the CGST Rules, 2017. It is suggested that the above mentioned eligible registered persons intended to determine the value of their supplies as per the valuation rules can exercise the option at the beginning of the Financial Year that is on or before April 1, 2019.
10. Availing Input tax credit by Banks, Financial Institutions or NBFC. Banks or financial institution or NBFC have been given an option to avail 50% of the eligible Input tax credit on inputs, capital goods and input services. It is suggested that this option to be exercised at the beginning of the F.Y. that is on or before April 1, 2019 as the option once exercised cannot be withdrawn during the remaining part of the financial year.
11. Following Amendment Acts made applicable from February 1, 2019
(a) CGST (Amendment) Act, 2018
(b) IGST (Amendment) Act, 2018
(c) UTGST (Amendment) Act, 2018
(d) GST (Compensation to States) Amendment Act, 2018
Some of the Major changes are as follows:
(a) Manner of utilization of ITC has been amended by inserting Section 49A in CGST Act. Now the credit of IGST needs to utilized first fully for the payment of IGST, CGST, SGST and UTGST respectively.
(b) Section 9(4) relating to reverse charge applicability on purchases made by registered person from unregistered person is replaced and now it applies to specific class.
(c) Now only e-commerce operators who are required to collect tax at source under Section 52 of the CGST Act, 2017 are mandatorily required obtain GST registration.
(d) Composition dealers as per section 10 of CGST Act, 2017 are allowed to supply services to the extent higher of 10% of the turnover in the preceding financial year or Rs. 5 lakhs.
(e) Multiple GST registrations within same state for each place of business has been allowed. The concept of business vertical is done away with.
(f) Issue of consolidated debit/credit note is allowed in respect of multiple invoices issued in a financial year rather than single debit/credit note in respect of each invoice.
(g) The receipt of payment in Indian rupees which is permitted by Reserve Bank of India for services exported out of India, will be covered in the definition of ‘export of services’ as per the IGST Act, 2017.
Using the Presumptive taxation Scheme Presumptive taxation scheme has been made available to professionals listed u/s 44ADA. This scheme will presume your income to be 50% of your gross receipts, thus you would not be to claim any further business expenses while using this scheme.
This scheme is available for professionals having gross receipts up to Rs 50 lakhs.
Apart from presuming your income, this scheme also waives the taxpayer from maintaining any books of accounts.
II. Reporting the income as business income i.e. without using the presumptive taxation scheme
Freelancing income can be considered as your business income & this will have its own merits.
Often the freelancers earn revenue & consider the revenue as their income, while they must have incurred certain amount to provide the services, they are engaged in. Having business as a source of your income, one would be able to deduct the expenses.
Most common expenses could be:
Depreciation on assets
Office Overheads
Office Rent
Client meeting expenses
Contracting costs etc.
Important thing to note here is, personal expenses cannot be claimed while computing the freelancing income.
Important note: One can either use one of the above two reporting under income tax. So, it is pertinent to determine, which one of the above would be beneficial for your freelancing business.
III. Investing the right way & claiming deductions
One of the most important steps towards saving tax is “Investing Right”, this will not only help you save tax, you will also have some portion of your money saved as Investments
Various deductions are available under Income tax of which most popular ones are Deductions u/s 80C, 80D, 80CCD, 80GG etc.
IV. Determining if GST registration is required
Apart from saving taxes under Income tax, a freelancer must also determine, if he/she is required to get the business registered under GST. This should be done proactively, to avoid any late fees or interest.
V. Filing correctly & in time to save Interest & penalties
One of the important ways to save money while filing taxes is to file correct and to file in time. Doing so, you will save unnecessary costs in the form of interest & penalties.
One must take care that:
They use the correct ITR form
Pay advance taxes, if applicable
Consider all sources of income & calculate accurately.
TDS credits are taken appropriately
Claim proper deductions
Determine if tax audit is applicable
Concluding, as you can see, there are a number of things which must fall right to be tax compliant & save tax.
The most important thing, is to find the right mix. Therefore, a lot will depend upon various other factors such as the other income sources of the Individual, eligibility of deductions, applicability of tax audit, importance of book-keeping for the freelancer etc.
This scheme is available for professionals having gross receipts up to Rs 50 lakhs.
Apart from presuming your income, this scheme also waives the taxpayer from maintaining any books of accounts.
II. Reporting the income as business income i.e. without using the presumptive taxation scheme
Freelancing income can be considered as your business income & this will have its own merits.
Often the freelancers earn revenue & consider the revenue as their income, while they must have incurred certain amount to provide the services, they are engaged in. Having business as a source of your income, one would be able to deduct the expenses.
Most common expenses could be:
Depreciation on assets
Office Overheads
Office Rent
Client meeting expenses
Contracting costs etc.
Important thing to note here is, personal expenses cannot be claimed while computing the freelancing income.
Important note: One can either use one of the above two reporting under income tax. So, it is pertinent to determine, which one of the above would be beneficial for your freelancing business.
III. Investing the right way & claiming deductions
One of the most important steps towards saving tax is “Investing Right”, this will not only help you save tax, you will also have some portion of your money saved as Investments
Various deductions are available under Income tax of which most popular ones are Deductions u/s 80C, 80D, 80CCD, 80GG etc.
IV. Determining if GST registration is required
Apart from saving taxes under Income tax, a freelancer must also determine, if he/she is required to get the business registered under GST. This should be done proactively, to avoid any late fees or interest.
V. Filing correctly & in time to save Interest & penalties
One of the important ways to save money while filing taxes is to file correct and to file in time. Doing so, you will save unnecessary costs in the form of interest & penalties.
One must take care that:
They use the correct ITR form
Pay advance taxes, if applicable
Consider all sources of income & calculate accurately.
TDS credits are taken appropriately
Claim proper deductions
Determine if tax audit is applicable
Concluding, as you can see, there are a number of things which must fall right to be tax compliant & save tax.
The most important thing, is to find the right mix. Therefore, a lot will depend upon various other factors such as the other income sources of the Individual, eligibility of deductions, applicability of tax audit, importance of book-keeping for the freelancer etc.
We are posting an article for individuals who are getting interest from banks for their fixed deopsits
We invest money in fixed deposits to get better returns. If you go through the instructions mentioned on your FD certificate, it usually menti ons: “If the depositor is not liable to pay income tax and the interest to be paid in a financial year does not exceed the maximum amount which is not chargeable to income tax, the depositor may submit a declaration in Form No. 15G / 15H so that income tax is not deducted at source.” What does the statement mean?
The below article provides a comprehensive picture of what does 'Form No. 15G' and 'Form No. 15H' mean.
Banks normally ask depositors to submit Form No. 15G and Form No. 15H each year. There are different rules as to who can submit Form No. 15G and Form No. 15H.
Form No. 15G and Form No. 15H are self-declaration forms required to be furnished by the assessee to his banker for nil deduction / lower deduction of TDS (tax deducted at source) on interest on fixed deposit.
Form 15G and Form No. 15H is a self-declaration, which is provided by a person resident in India (not being a company or firm) to their deductor that the tax on his estimated total income for the previous year, will be nil. The duty to submit these forms with assessee before end of the financial year or first payment of interest whichever is earlier.
The declaration in writing should be collected by the deductor in duplicate.
Form No. 15H: For senior citizens
Form No. 15G: For other than senior citizens
Previous year income should not be taxable
No TDS is deducted by banks on interest earned in saving bank accounts and recurring deposit accounts. Interest on fixed deposits is subject to deduction of tax as per income tax rules.
According to Section 197A of the Income Tax Act, 1961, an individual who is resident in India and whose estimated total income of the previous year is less than the minimum liable to income-tax will receive interest on securities, dividends and other interest without deduction of tax at source. The facility of claiming payments of interest on securities, dividends, etc., under section 197A is available only in the case of individuals who are resident in India. Accordingly, it is not permissible for Hindu undivided families and other categories of taxpayers to claim payments of interest on securities, dividends, etc., without deduction of tax at source on furnishing the declaration in Form No. 15G or 15H.
All banks and financial institutions will deduct TDS on all interest payments exceeding Rs. 10,000 on fixed deposits in a financial year. If a customer receives more than Rs. 10,000 per annum on his FDs as interest from a bank, the bank deducts tax on such income arising in the hands of the customer. The tax deducted is directly paid to the government on the behalf of the customer.
The bank issues a TDS Certificate also called Form 16A which mentions the details of the TDS payment with the government. The bank will deduct tax at source once the amount of interest to be credited in respect of all the fixed deposits taken together exceeds Rs. 10,000 in a financial year. This limit of Rs. 10,000 is applicable for each branch of a bank and not for all the branches of a bank taken together. So each branch of the bank will see whether the interest for the whole year on all the FDs exceed the threshold of Rs. 10,000.
Banks are not required to deduct any TDS on interest credited on your savings bank account even the amount of interest may be very substantial.
In case of FDs made for longer duration where the interest will be paid to you only on maturity, the bank will deduct tax at source on the interest accrued for the year even though no interest in fact has been paid to you.
Form No 15G: Only a person who is resident in India can submit Form No. 15G. So a NRI cannot submit this form. Any person other than a company can submit Form No. 15 G. So any individual, HUF, Trust, Association of Persons or Body of Individuals can submit Form No. 15G. Form 15G is submitted by individuals who are less than 60 years of age.
Form No. 15H: Any resident Individual who is above sixty years
The below article provides a comprehensive picture of what does 'Form No. 15G' and 'Form No. 15H' mean.
Banks normally ask depositors to submit Form No. 15G and Form No. 15H each year. There are different rules as to who can submit Form No. 15G and Form No. 15H.
Form No. 15G and Form No. 15H are self-declaration forms required to be furnished by the assessee to his banker for nil deduction / lower deduction of TDS (tax deducted at source) on interest on fixed deposit.
Form 15G and Form No. 15H is a self-declaration, which is provided by a person resident in India (not being a company or firm) to their deductor that the tax on his estimated total income for the previous year, will be nil. The duty to submit these forms with assessee before end of the financial year or first payment of interest whichever is earlier.
The declaration in writing should be collected by the deductor in duplicate.
Form No. 15H: For senior citizens
Form No. 15G: For other than senior citizens
Previous year income should not be taxable
No TDS is deducted by banks on interest earned in saving bank accounts and recurring deposit accounts. Interest on fixed deposits is subject to deduction of tax as per income tax rules.
According to Section 197A of the Income Tax Act, 1961, an individual who is resident in India and whose estimated total income of the previous year is less than the minimum liable to income-tax will receive interest on securities, dividends and other interest without deduction of tax at source. The facility of claiming payments of interest on securities, dividends, etc., under section 197A is available only in the case of individuals who are resident in India. Accordingly, it is not permissible for Hindu undivided families and other categories of taxpayers to claim payments of interest on securities, dividends, etc., without deduction of tax at source on furnishing the declaration in Form No. 15G or 15H.
All banks and financial institutions will deduct TDS on all interest payments exceeding Rs. 10,000 on fixed deposits in a financial year. If a customer receives more than Rs. 10,000 per annum on his FDs as interest from a bank, the bank deducts tax on such income arising in the hands of the customer. The tax deducted is directly paid to the government on the behalf of the customer.
The bank issues a TDS Certificate also called Form 16A which mentions the details of the TDS payment with the government. The bank will deduct tax at source once the amount of interest to be credited in respect of all the fixed deposits taken together exceeds Rs. 10,000 in a financial year. This limit of Rs. 10,000 is applicable for each branch of a bank and not for all the branches of a bank taken together. So each branch of the bank will see whether the interest for the whole year on all the FDs exceed the threshold of Rs. 10,000.
Banks are not required to deduct any TDS on interest credited on your savings bank account even the amount of interest may be very substantial.
In case of FDs made for longer duration where the interest will be paid to you only on maturity, the bank will deduct tax at source on the interest accrued for the year even though no interest in fact has been paid to you.
Form No 15G: Only a person who is resident in India can submit Form No. 15G. So a NRI cannot submit this form. Any person other than a company can submit Form No. 15 G. So any individual, HUF, Trust, Association of Persons or Body of Individuals can submit Form No. 15G. Form 15G is submitted by individuals who are less than 60 years of age.
Form No. 15H: Any resident Individual who is above sixty years
of age or completes sixty years during the financial year can submit Form No. 15H provided his tax liability on the basis of his estimated income is nil for the financial year.
Please ensure to submit your PAN details to the bank while submitting the Form No. 15G or 15H. In case you fail to include your PAN number to the bank, the bank will deduct TDS @ 20% against the applicable rate of 10% even if you have submitted Form No. 15G and 15H. Please take an acknowledgement from the bank for Form No. 15 G or 15H while submitting it.
The Form No. 15G or 15H as the case may be, should be submitted at the beginning of the year so as to avoid a situation where bank has already deducted the tax before you submit the form. However in case the bank deducts the tax in spite of the fact that you have submitted the form or before you actually submit the same, the bank will not refund the tax already deducted, as the bank would have already deposited the tax with the government. In such a situation the only option available with you is to file your income tax return and claim the amount of TDS a refund.
Form 15G and Form 15H have the validity of only one financial year. These forms are valid only for the financial year in which you have furnished these forms. If you want to apply for nil TDS in the new financial year, then you will have to resubmit these forms. Form 15H or 15G are meant to prevent TDS and not to avoid tax or file your tax return. You may be required to file your tax return if your total income before the deductions is above the basic tax exemption limit.
Please ensure to submit your PAN details to the bank while submitting the Form No. 15G or 15H. In case you fail to include your PAN number to the bank, the bank will deduct TDS @ 20% against the applicable rate of 10% even if you have submitted Form No. 15G and 15H. Please take an acknowledgement from the bank for Form No. 15 G or 15H while submitting it.
The Form No. 15G or 15H as the case may be, should be submitted at the beginning of the year so as to avoid a situation where bank has already deducted the tax before you submit the form. However in case the bank deducts the tax in spite of the fact that you have submitted the form or before you actually submit the same, the bank will not refund the tax already deducted, as the bank would have already deposited the tax with the government. In such a situation the only option available with you is to file your income tax return and claim the amount of TDS a refund.
Form 15G and Form 15H have the validity of only one financial year. These forms are valid only for the financial year in which you have furnished these forms. If you want to apply for nil TDS in the new financial year, then you will have to resubmit these forms. Form 15H or 15G are meant to prevent TDS and not to avoid tax or file your tax return. You may be required to file your tax return if your total income before the deductions is above the basic tax exemption limit.
Presumptive taxation scheme and eligibility ( Business )
If an Assessee is having Income from Business they can opt for Presumptive Taxation Scheme (if Turnover / Gross Receipts is upto Rs.2 crore) under Section – 44AD
As per Section 44AD – Presumptive PGBP Income for business is calculated in the following manner:
• Turn Over / Gross Receipts * 8%
/ 6%
• Eligible Assessee is required to pay Advance Tax on or before 15th March of FY.
• If Section 44AD applicable Assessee cannot claim expenses
• Assessee no need to maintain Books of Accounts
If an Assessee is having Income from Business they can opt for Presumptive Taxation Scheme (if Turnover / Gross Receipts is upto Rs.2 crore) under Section – 44AD
As per Section 44AD – Presumptive PGBP Income for business is calculated in the following manner:
• Turn Over / Gross Receipts * 8%
/ 6%
• Eligible Assessee is required to pay Advance Tax on or before 15th March of FY.
• If Section 44AD applicable Assessee cannot claim expenses
• Assessee no need to maintain Books of Accounts
Advantages of Presumptive taxation Schemes are Assessee will pay Nominal taxes even though they had more Profits
A. Due dates for Compliances under GST
11-04-19- Due date for filing GSTR-1 for m/o March 19 -> Applicable for taxpayers with Annual Aggregate turnover Above Rs. 1.50/- Crore or opted to file monthly Return (Rs. One Crore Fifty Lacs) only.
30-04-19- Due date for filing GSTR-1 for March 19 Quarter -> Applicable for taxpayers with Annual Aggregate turnover LESS than Rs. 1.50/- Crore (Rs. One Crore Fifty Lacs) only.
10-04-19- Due date for filing GSTR-7 (to be filed by the persons who is required to deduct TDS under GST for the month of March 19.
10-04-19- Due date for filing GSTR-8 (to be filed by the by the e-commerce operators required to deduct TDS under GST for the m/o March 19.
20-04-19- Due date for filing GSTR-5 & 5A (to be filed by the Non-Resident taxable person & OIDAR for the m/o March 19.
13-04-2019- Due date for filing GSTR-6 (to be filed by the Input Service Distributor for the m/o March 19.
18-04-2019- Quarterly return GSTR – 4 for taxpayers opting for Composition Scheme from the period starting from Jan 2019 to March 2019.
20-04-2019- GSTR-3B for the m/o March 19. Pay due Tax till this date.
RFD-10:- Eighteen months after end of the quarter for which refund is to be claimed
30-04-19 – Due date of TRAN-2 is extended for certain taxpayers who could not complete filing due to tech glitch.
B. Due dates for Compliance under Income tax
07-04-19- Due date for deposit of tax deducted /collected at source by an office of the government for m/o March 19. However, all sum deducted by an office of the government shall be paid to credit of Central Government on the same day where tax is paid without production of an Income-tax Challan
30-04-19 – Due date for deposit of Tax deducted by an assessee other than an office of the Government for the month of March 19.
14-04-19- Due date for issue of TDS Certificate for tax deducted u/s 194-IA (TDS on Immovable property) in m/o Feb 19
14-04-19 – Due date for issue of TDS Certificate for tax deducted under section 194-IB (TDS on Certain Rent payment) in m/o Feb 19
30-04-19 -Due date for furnishing of Form 24G by an office of Government where TDS for m/o Feb 19 has been paid without production of a challan
30-04-19 -Due date for furnishing of challan-cum-statement in respect of tax deducted u/s 194-IA in month of March 19
30-04-19 -Due date for furnishing of challan-cum-statement in respect of tax deducted u/s 194-IB in month of March 19
C. Due dates for Compliances under Companies Act
21-04-2019- Form DPT-3 – Onetime Return For Disclosure Of Details Of Outstanding Money Or Loan Received By Company But Not Considered As Deposits In Terms Of Rule 2(1)(C) Of The Companies (Acceptance Of Deposits) Rules, 2014 (New e-form not yet deployed by Ministry (ROC)
25-04-19- INC- 22A- Filing of the particulars of the Company & its registered office. (by every company incorporated on or before 31.12.17)- Penalty after due date is Rs. 10,000/-
30-04-19 – Every Person holding DIN as on 31.03.2019 (including Directors having disqualified DIN). Penalty after due date is Rs. 5,000/-
D. Due dates for Compliances under ESI, PF Acts
15-04-2019- PF Payment for m/o March 19.
15-04-2019- ESIC Payment for m/o March 19
25-04-19 – PF Return filling for March 19 (including pension & Insurance scheme forms
11-04-19- Due date for filing GSTR-1 for m/o March 19 -> Applicable for taxpayers with Annual Aggregate turnover Above Rs. 1.50/- Crore or opted to file monthly Return (Rs. One Crore Fifty Lacs) only.
30-04-19- Due date for filing GSTR-1 for March 19 Quarter -> Applicable for taxpayers with Annual Aggregate turnover LESS than Rs. 1.50/- Crore (Rs. One Crore Fifty Lacs) only.
10-04-19- Due date for filing GSTR-7 (to be filed by the persons who is required to deduct TDS under GST for the month of March 19.
10-04-19- Due date for filing GSTR-8 (to be filed by the by the e-commerce operators required to deduct TDS under GST for the m/o March 19.
20-04-19- Due date for filing GSTR-5 & 5A (to be filed by the Non-Resident taxable person & OIDAR for the m/o March 19.
13-04-2019- Due date for filing GSTR-6 (to be filed by the Input Service Distributor for the m/o March 19.
18-04-2019- Quarterly return GSTR – 4 for taxpayers opting for Composition Scheme from the period starting from Jan 2019 to March 2019.
20-04-2019- GSTR-3B for the m/o March 19. Pay due Tax till this date.
RFD-10:- Eighteen months after end of the quarter for which refund is to be claimed
30-04-19 – Due date of TRAN-2 is extended for certain taxpayers who could not complete filing due to tech glitch.
B. Due dates for Compliance under Income tax
07-04-19- Due date for deposit of tax deducted /collected at source by an office of the government for m/o March 19. However, all sum deducted by an office of the government shall be paid to credit of Central Government on the same day where tax is paid without production of an Income-tax Challan
30-04-19 – Due date for deposit of Tax deducted by an assessee other than an office of the Government for the month of March 19.
14-04-19- Due date for issue of TDS Certificate for tax deducted u/s 194-IA (TDS on Immovable property) in m/o Feb 19
14-04-19 – Due date for issue of TDS Certificate for tax deducted under section 194-IB (TDS on Certain Rent payment) in m/o Feb 19
30-04-19 -Due date for furnishing of Form 24G by an office of Government where TDS for m/o Feb 19 has been paid without production of a challan
30-04-19 -Due date for furnishing of challan-cum-statement in respect of tax deducted u/s 194-IA in month of March 19
30-04-19 -Due date for furnishing of challan-cum-statement in respect of tax deducted u/s 194-IB in month of March 19
C. Due dates for Compliances under Companies Act
21-04-2019- Form DPT-3 – Onetime Return For Disclosure Of Details Of Outstanding Money Or Loan Received By Company But Not Considered As Deposits In Terms Of Rule 2(1)(C) Of The Companies (Acceptance Of Deposits) Rules, 2014 (New e-form not yet deployed by Ministry (ROC)
25-04-19- INC- 22A- Filing of the particulars of the Company & its registered office. (by every company incorporated on or before 31.12.17)- Penalty after due date is Rs. 10,000/-
30-04-19 – Every Person holding DIN as on 31.03.2019 (including Directors having disqualified DIN). Penalty after due date is Rs. 5,000/-
D. Due dates for Compliances under ESI, PF Acts
15-04-2019- PF Payment for m/o March 19.
15-04-2019- ESIC Payment for m/o March 19
25-04-19 – PF Return filling for March 19 (including pension & Insurance scheme forms
Following are the five transactions that Income Tax Department doesn’t want you to do.
1) Don’t accept cash of Rs 2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion.
2) Don’t receive or repay specified sum exceeding Rs 20,000 or more in cash for transfer of immovable property and use account payee cheque or account payee demand draft or use of electronic clearing system through a bank account.
3) Don’t pay more than Rs 10,000 in cash relating to expenditure of business/profession.
4) Don’t donate in excess of Rs 2,000 in cash to a registered trust or political party.
5) Don’t pay health insurance premiums in cash.
1) Don’t accept cash of Rs 2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion.
2) Don’t receive or repay specified sum exceeding Rs 20,000 or more in cash for transfer of immovable property and use account payee cheque or account payee demand draft or use of electronic clearing system through a bank account.
3) Don’t pay more than Rs 10,000 in cash relating to expenditure of business/profession.
4) Don’t donate in excess of Rs 2,000 in cash to a registered trust or political party.
5) Don’t pay health insurance premiums in cash.
Let us study these transactions in detail:
1) Don’t accept cash of Rs 2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion. Instead of cash, you are advised to use an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account for such transactions. However, the said restriction shall not apply to government, any banking company, post office savings bank, co-operative bank or a person notified by the Central Government. Section 271DA of the Income Tax Act provides for levy of penalty on a person who receives a sum in contravention of the provisions of section 269ST. The penalty shall be equal to the amount of such receipt. However, the penalty shall not be levied if the person proves that there were good and sufficient reasons for such contravention.
2) Don’t receive or repay specified sum exceeding Rs 20,000 or more in cash for transfer of immovable property and use account payee cheque or account payee demand draft or use of electronic clearing system through a bank account. “Specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place. Contravention of the provisions of section 269SS will attract penalty under section 271D. Penalty under section 271D shall be levied of an amount equal to loan or deposit taken or accepted.
3) Don’t pay more than Rs 10,000 in cash relating to expenditure of business/profession. If such expenses exceeding Rs 10,000 are made in any mode, other than by an account payee cheque drawn on a bank, or account payee bank draft, or use of electronic clearing system through a bank account, no deduction shall be allowed in respect of such expenditure in the profit and loss account.
4) Don’t donate in excess of Rs 2,000 in cash to a registered trust or political party. Not only you won’t be able to claim deductions under section 80G of the Income Tax Act for such donations, but appropriate actions would be initiated against the trust or political party for encouraging money laundering.
5) Don’t pay health insurance premiums in cash. If you make any payment in cash on account of premium on health insurance facilities, you won’t get deductions under Section 80D of the Income Tax Act.
The Government is time and again giving us opportunities to declare the relevant information suo motto in the ITR forms. For eg: in the recently notified ITR Forms for the AY 2019-20, one important declaration asked by the government is that of the holding of shares in unlisted companies. The Government is thus trying to co relate all the data and have access to all the information about a particular assessee, which is in a way a very good initiative to curb Black Money and Benami transactions.
Also, the Government has these days become very interactive and keeps issuing Rules and Warnings to the assessee’s to not perform certain transactions which might land them into
unnecessary trouble. We therefore need to take care of such warnings and avoid such transactions to avoid future hassles.
So, it is advisable for your own good not to violate the above rules, as the Income Tax Department is seeking information regarding such violations, black money or benami transactions. Also, all the tax departments are now being centralized and there is easy flow of information and assessee data from one department to another, because everything is online.
1) Don’t accept cash of Rs 2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion. Instead of cash, you are advised to use an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account for such transactions. However, the said restriction shall not apply to government, any banking company, post office savings bank, co-operative bank or a person notified by the Central Government. Section 271DA of the Income Tax Act provides for levy of penalty on a person who receives a sum in contravention of the provisions of section 269ST. The penalty shall be equal to the amount of such receipt. However, the penalty shall not be levied if the person proves that there were good and sufficient reasons for such contravention.
2) Don’t receive or repay specified sum exceeding Rs 20,000 or more in cash for transfer of immovable property and use account payee cheque or account payee demand draft or use of electronic clearing system through a bank account. “Specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place. Contravention of the provisions of section 269SS will attract penalty under section 271D. Penalty under section 271D shall be levied of an amount equal to loan or deposit taken or accepted.
3) Don’t pay more than Rs 10,000 in cash relating to expenditure of business/profession. If such expenses exceeding Rs 10,000 are made in any mode, other than by an account payee cheque drawn on a bank, or account payee bank draft, or use of electronic clearing system through a bank account, no deduction shall be allowed in respect of such expenditure in the profit and loss account.
4) Don’t donate in excess of Rs 2,000 in cash to a registered trust or political party. Not only you won’t be able to claim deductions under section 80G of the Income Tax Act for such donations, but appropriate actions would be initiated against the trust or political party for encouraging money laundering.
5) Don’t pay health insurance premiums in cash. If you make any payment in cash on account of premium on health insurance facilities, you won’t get deductions under Section 80D of the Income Tax Act.
The Government is time and again giving us opportunities to declare the relevant information suo motto in the ITR forms. For eg: in the recently notified ITR Forms for the AY 2019-20, one important declaration asked by the government is that of the holding of shares in unlisted companies. The Government is thus trying to co relate all the data and have access to all the information about a particular assessee, which is in a way a very good initiative to curb Black Money and Benami transactions.
Also, the Government has these days become very interactive and keeps issuing Rules and Warnings to the assessee’s to not perform certain transactions which might land them into
unnecessary trouble. We therefore need to take care of such warnings and avoid such transactions to avoid future hassles.
So, it is advisable for your own good not to violate the above rules, as the Income Tax Department is seeking information regarding such violations, black money or benami transactions. Also, all the tax departments are now being centralized and there is easy flow of information and assessee data from one department to another, because everything is online.
1. Form GSTR-9, Annual Return for 2017-18 to be filed by normal taxpayer
Facility to file Annual Return by normal taxpayers in Form GSTR 9, for Financial Year 2017-18, is now available at GST Portal. APIs for Form GSTR 9 has been released for CBIC/Model I States for back office integration.
2. Form GSTR-9A, Annual Return for 2017-18 for composition taxpayer
Facility to file Annual Return by composition taxpayers in Form GSTR 9A ,for Financial Year 2017-18, is now available at GST Portal.
3. Viewing & Downloading of month-wise Comparative Table on Liability Declared and Credit Claimed
Taxpayers have been provided with facility to
to view and download a report on tax liability as declared in their Form GSTR- 1 and as declared & paid in their return filed in Form GSTR 3B.
view information regarding data of Input tax credit (ITC) as claimed in their Form GSTR 3B and as accrued in Form GSTR 2A to view the liability paid due to reverse charge as declared & paid in Form GSTR 3B and as accrued in Form GSTR 2A, due to uploading of such details by the supplier in Form GSTR-1.
view and compare the liability related to exports & SEZ supplies as declared in their Form GSTR-3B during themonth [as per table 3.1(b)] and liability as declared in their Form GSTR-1 (Zero rated supplies) as per table 6A, 6B, 9A, 9B & 9C of the Form GSTR 1.
This functionality has been provided in Returns dashboard on the GST Portal to taxpayers under the headings “Comparison of liability declared and ITC claimed”.
4. Revocation of cancellation of Registration
Facility for applying for revocation of suo-moto cancellation of registration for the persons registered as OIDAR /TDS/TCS/ NRTP category has been enabled on GST Portal.
APIs for these functionalities have also been released for CBIC and Model I States.
Facility to file Annual Return by normal taxpayers in Form GSTR 9, for Financial Year 2017-18, is now available at GST Portal. APIs for Form GSTR 9 has been released for CBIC/Model I States for back office integration.
2. Form GSTR-9A, Annual Return for 2017-18 for composition taxpayer
Facility to file Annual Return by composition taxpayers in Form GSTR 9A ,for Financial Year 2017-18, is now available at GST Portal.
3. Viewing & Downloading of month-wise Comparative Table on Liability Declared and Credit Claimed
Taxpayers have been provided with facility to
to view and download a report on tax liability as declared in their Form GSTR- 1 and as declared & paid in their return filed in Form GSTR 3B.
view information regarding data of Input tax credit (ITC) as claimed in their Form GSTR 3B and as accrued in Form GSTR 2A to view the liability paid due to reverse charge as declared & paid in Form GSTR 3B and as accrued in Form GSTR 2A, due to uploading of such details by the supplier in Form GSTR-1.
view and compare the liability related to exports & SEZ supplies as declared in their Form GSTR-3B during themonth [as per table 3.1(b)] and liability as declared in their Form GSTR-1 (Zero rated supplies) as per table 6A, 6B, 9A, 9B & 9C of the Form GSTR 1.
This functionality has been provided in Returns dashboard on the GST Portal to taxpayers under the headings “Comparison of liability declared and ITC claimed”.
4. Revocation of cancellation of Registration
Facility for applying for revocation of suo-moto cancellation of registration for the persons registered as OIDAR /TDS/TCS/ NRTP category has been enabled on GST Portal.
APIs for these functionalities have also been released for CBIC and Model I States.
Important Announcement
Are you a Stock Market Trader?
Filing income tax return can be tricky for you.
IT Return - Salaried Employees with Trading Income need to file return as a Business Owner in ITR-3 and not in ITR-1 which is for Salaried Employees.
Gain & Loss Calculation - Gains & Losses are calculated differently for Income Tax purpose, based on whether you took delivery of stocks, did intra-day trading, or traded in the futures and options segment.
Claim Expense - rent of premises used for the business; mobile or telephone bills; Internet charges; demat account charges; broker's commissions; depreciation on a laptop used for trading; and any other expense related directly to your work.
Carry forward Loss - Made loss this year? Carry forward losses up to 4/8 years and set off against future profits.
Tax Audit - Tax audit becomes applicable if turnover exceeds Rs 1 crore or if Profit declared is less than 6% of the Turnover.
Worry no more!! Filing Income Tax Return now made easy by Phoenix Auditing.
Expert assisted services provided in:
• Calculation of Taxable income and Tax payable
• Assistance in Advance tax payment if applicable
• Suggestion on Best tax saving options
• Advisory on Investment plans
• Filing of Income Tax return
• Tax Due/ Refund status
• Post return filing Support via Email & Phone
Special 40% discount compared to Market Prices. Get in Touch now.
Contact: 96208 88014
Telegram Helpline : @PhoenixAuditingTeam
Are you a Stock Market Trader?
Filing income tax return can be tricky for you.
IT Return - Salaried Employees with Trading Income need to file return as a Business Owner in ITR-3 and not in ITR-1 which is for Salaried Employees.
Gain & Loss Calculation - Gains & Losses are calculated differently for Income Tax purpose, based on whether you took delivery of stocks, did intra-day trading, or traded in the futures and options segment.
Claim Expense - rent of premises used for the business; mobile or telephone bills; Internet charges; demat account charges; broker's commissions; depreciation on a laptop used for trading; and any other expense related directly to your work.
Carry forward Loss - Made loss this year? Carry forward losses up to 4/8 years and set off against future profits.
Tax Audit - Tax audit becomes applicable if turnover exceeds Rs 1 crore or if Profit declared is less than 6% of the Turnover.
Worry no more!! Filing Income Tax Return now made easy by Phoenix Auditing.
Expert assisted services provided in:
• Calculation of Taxable income and Tax payable
• Assistance in Advance tax payment if applicable
• Suggestion on Best tax saving options
• Advisory on Investment plans
• Filing of Income Tax return
• Tax Due/ Refund status
• Post return filing Support via Email & Phone
Special 40% discount compared to Market Prices. Get in Touch now.
Contact: 96208 88014
Telegram Helpline : @PhoenixAuditingTeam
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✳ Business Formations - Registrations of
🔸 Sole Proprietorship 🔸 Partnership Firm 🔸 One Person Company 🔸 Limited Liability Partnership
✳ Legal Registrations - 🔸 GST Registration 🔸 Professional Tax Registration 🔸 TAN Registration 🔸 Provident Fund Registration 🔸 Import Export Code 🔸 MSME Registration 🔸 ESI Registration 🔸 Shop & Establishment Registration 🔸 Digital Signature Certificate
✳ Filing of Income Tax Returns - (ITR)
🔸 ITR-1 🔸 ITR-2 🔸 ITR-3
✳ Other Service - 🔸 GST Return Filings 🔸 TDS Return Filings 🔸 GST Advisory Services 🔸 TDS Advisory Services 🔸 Income Tax Advisory Services To know more details get in touch with us @PhoenixAuditingTeam Contact: 9620888014
1. ITR 1 (SAHAJ): For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs.5 thousand]
NOTE: Not for an individual who is either Director in a company or has invested in unlisted equity shares.
2. ITR 2: For Individuals and HUFs not having income from profits and gains of business or profession
3. ITR 3: For individuals and HUFs having income from profits and gains of business or Profession.
4. ITR 4 (SUGAM): For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE]
NOTE: Not for an individual who is either Director in a company or has invested in unlisted equity shares]
5. ITR 5: For persons other than- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7
6. ITR 6: For Companies other than companies claiming exemption under section 11
7. ITR 7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D).
Major Changes/Additional details to be furnished in new ITR Forms
1. ITR Form – 1 can be filed only by the following residents & ordinary resident (ROR) persons i.e.
(a) Whose total income does not exceed Rs. 50 lakhs;
(b) Who is not a director in a company;
(c) Who is not holding any unlisted equity shares;
(d) Who is not assessable in respect of other person’s income on which tax has not been withheld.
(e) Who has not claimed any deduction against “income from other sources” (other than family pension
2. The assessee who is filing ITR 2 or ITR 3 has to provide a history of their stay in India to determine residential status for income tax purposes.
3. In case rental income from house property on which tax has been deducted, the details of TAN/PAN of the tenant for claiming the credit for the tax deducted by the tenant has to be given.
4. In case any tax has been deducted by the buyer in respect of the sale of any immovable property then have to mandatorily furnish the details of the PAN of the buyer for claiming the TDS credit.
5. Assessee having business or profession with GST registration are now needed to furnish GST Revenue, GSTIN (GST Number). This disclosure is extended to ITR Forms from 3-6.
6. Salaried Employee: Exempt allowance to be shown separately along with the bifurcation for deductions claimed u/s 16 of the IT Act, 1961. TAN of employer mandatory required to be reported in ITR 2 and ITR 3.
7. Foreign Assets: Column A, which deals with the details of the foreign bank account in ITR Form 2 & 3, has been reframed to include the details of foreign depository account, foreign custodian accounts, foreign equity and debt interest, foreign cash value insurance contract or annuity contract, etc.
8. In ITR form 2 & 3, additional details in case of agricultural income are required to be reported, such as the name of the district with pin code, measurement of agricultural land, whether owned/leased, whether irrigated or rain-fed under the “exempt income schedule”. In addition, reporting of income not chargeable to tax under the tax treaty is required to be disclosed in this schedule.
9. Only very senior citizen (i.e. above 80 years) filling ITR 1 and ITR 4 will be entitled to file physical returns and all other Individuals will have to file their ITR electronically.
NOTE: Not for an individual who is either Director in a company or has invested in unlisted equity shares.
2. ITR 2: For Individuals and HUFs not having income from profits and gains of business or profession
3. ITR 3: For individuals and HUFs having income from profits and gains of business or Profession.
4. ITR 4 (SUGAM): For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE]
NOTE: Not for an individual who is either Director in a company or has invested in unlisted equity shares]
5. ITR 5: For persons other than- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7
6. ITR 6: For Companies other than companies claiming exemption under section 11
7. ITR 7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D).
Major Changes/Additional details to be furnished in new ITR Forms
1. ITR Form – 1 can be filed only by the following residents & ordinary resident (ROR) persons i.e.
(a) Whose total income does not exceed Rs. 50 lakhs;
(b) Who is not a director in a company;
(c) Who is not holding any unlisted equity shares;
(d) Who is not assessable in respect of other person’s income on which tax has not been withheld.
(e) Who has not claimed any deduction against “income from other sources” (other than family pension
2. The assessee who is filing ITR 2 or ITR 3 has to provide a history of their stay in India to determine residential status for income tax purposes.
3. In case rental income from house property on which tax has been deducted, the details of TAN/PAN of the tenant for claiming the credit for the tax deducted by the tenant has to be given.
4. In case any tax has been deducted by the buyer in respect of the sale of any immovable property then have to mandatorily furnish the details of the PAN of the buyer for claiming the TDS credit.
5. Assessee having business or profession with GST registration are now needed to furnish GST Revenue, GSTIN (GST Number). This disclosure is extended to ITR Forms from 3-6.
6. Salaried Employee: Exempt allowance to be shown separately along with the bifurcation for deductions claimed u/s 16 of the IT Act, 1961. TAN of employer mandatory required to be reported in ITR 2 and ITR 3.
7. Foreign Assets: Column A, which deals with the details of the foreign bank account in ITR Form 2 & 3, has been reframed to include the details of foreign depository account, foreign custodian accounts, foreign equity and debt interest, foreign cash value insurance contract or annuity contract, etc.
8. In ITR form 2 & 3, additional details in case of agricultural income are required to be reported, such as the name of the district with pin code, measurement of agricultural land, whether owned/leased, whether irrigated or rain-fed under the “exempt income schedule”. In addition, reporting of income not chargeable to tax under the tax treaty is required to be disclosed in this schedule.
9. Only very senior citizen (i.e. above 80 years) filling ITR 1 and ITR 4 will be entitled to file physical returns and all other Individuals will have to file their ITR electronically.
Aadhar Pan Link deadline extended- The aadhar PAN link deadline has been extended to 30th September 2019. Central Borad of Direct taxes (CBDT) has pronounced the extension in aadhar card linking with pan card on 31st March 2019. vide its notification no 31/2019.