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Online GST Registration Process | GST Identification Number | GSTIN

The GSTIN is otherwise called as the GST Identification Number. All the business entities registering under GST are provided with a unique identification number called as GSTIN. This number is similar to that of the existing TIN Number that is the Tax Identification Number. This is a single type registration number for everyone who falls under the GST regime. People can apply for the GST registration in form GST REG-06 for the principal face of the business that is available on a common portal. This registration is valid for all the places of business in the state.

Format of GSTIN

The Goods and Service Tax Identification Number is based on the following format:

  • First two character of the State Code
  • Next Ten Characters of the PAN or the Tax Deductions or the Collection Account Number.
  • Next two characters for the entity code
  • The last digit denotes the sum of all the characters

Like for an Example:

22   AAAAA0000A  1  Z  5

This is the official format of a GSTIN. The 22 represents the State Code as per the Indian Census 2011. The AAAAA0000A represents the PAN number of the applicant. 1 is the Entity Number of the same identity of the PAN Holder in a state. The alphabet “Z” is set by default. Whereas, the number 5 is the sum of all the number characters (2+2+1=5).

How To Apply For GSTIN

This is a part of a GST registration process. The Government allots a 15 digit GSTIN Number. All you have to do is go to the official website of www.gst.gov.in

There are two ways to register for GST

  • via an online portal
  • via GST Seva Kendra set up by the Government of India.

Once the GST is approved by the GST officer, a unique GSTIN is allocated to the dealer.

Documents Required to Apply for a GSTIN

The following are the details for applying a GST:

  • Valid Permanent Number (PAN)
  • Valid Indian Mobile Phone Number
  • Valid email Address
  • Prescribed Documents and information on all the mandatory fields of Registration Application.
  • Place of Business
  • An authorized signature of the resident of India with valid details including the PAN.
  • At least one proprietor/Partner/Trustee/Director/Karta/Member with Corresponding PAN.
  • IFSC Code of the same bank and branch.
  • Valid Bank Account Number from India.
  • Jurisdiction details.

Cost Of Applying and Validity

The cost for obtaining a GST and GSTIN is free. The GST registration for the regular tax payers do not have any expiry date and is valid until it is surrendered and canceled. The GST registration for the non-residential tax payer and casual taxable persons are valid until the date is mentioned in the certificate.

How To Check A GST Application Status

If you have applied for a GST registration then it normally takes 7 working days to generate a provisional GST Identification Number and it requires 10 days to obtain the final GST Identification Number along with the GST Registration Number.

  1. Go to the GST Portal:  www.gst.gov.in
  2. When you visit the GST Portal click on the services-registration- Track Application Status
  3. A box is displayed requesting you to enter the ARN Number.
  4. Enter the ARN number of the GST registration application in the place provided and enter the Captcha.
  5. After providing the ARN number, the information about the GST registration application status is displayed below.
  6. If the GST registration application is approved then the approved message status will be displayed next to the status information.

Verifying GSTIN

Being a registered GST dealer, it is important to verify the GST Identification Number before entering it into the GST Returns. The GST Portal enables the businesses to verify the GSTIN.

Step By Step Procedure To Verify GST Identification Number:

  • Visit the GST Portal. Login to the GST Portal.
  • Enter the login Username and Password provided during the registration.
  • After logging in, a page appears where an option of Search Tax Payer is displayed on the menu bar. In the drop down go to search by GSTIN/ UIN.
  • Now enter the GSTIN or the GST Number of the dealer and Click on Search.
  • If the GSTIN is correct then you will get all the details and information regarding the dealers, whereas, if your GST Identification Number is wrong then an error message will be shown on the screen. In this case, you will have to contact the vendor and get your GST Identification Number corrected.

If the GST is correct, then these are the following details that are displayed on the screen:

  • Legal Name of the Business
  • The State of the applicant.
  • Date of registration- It is the date when you have applied for the GST, i.e GST Registration date.
  • Construction of the Business- Company, Sole Proprietor or Partnership.
  • Type of Tax Payer- A regular tax payer or a composition dealer.

Income Tax Return Filing | How to e-File Your Income Tax Return Online

The Income Tax is a tax that levied to the taxpayers on their personal income. It is imposed on every individuals or entity that varies with their respective income or profits. As per the section 139 (1) of the Income Tax Act 1961 in the country, if a person’s total income exceeds the maximum amount which is not chargeable to tax has to file an ITR (Income Tax Return).

The process of filing an Income Tax Return electronically is called as e-filing. For filing an ITR, you can either ask for professional help or file your returns just by registering yourself on the Income Tax Department websites or other websites. The last date for filing the tax returns was July 31st.

Who should e-File an Income- Tax Return

The e-filing is done completely online and is performed by most of the individuals.

  • The Individuals who have a total income of Rs 5 Lakhs and above.
  • The Individual/ HUF residents along with the family who is located outside India.
  • An individual has to furnish a report of an audit specified under the sections 10 (23C) (IV), 10 (23C) (v), 10 (23C) (VI), 10 (23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 11JB of the Act.
  • The individual also has to give a Notice under the Section 11 (2) (a) to the assessing officer.
  • A firm (that does not come under the provisions of Section 44 AB), AOP, BOI, Artificial Juridical Person, Co-operative Society and Local Authority (ITR-5).
  • An individual required to furnish returns U/S 139 (4B) (ITR-7).
  • A resident who has the signing authority in any account located outside India.
  • A person who claims relief under sections 90 and 90A or deductions under section 91.
  • All companies.

Types of e-Filing

  • Using a Digital Signature Certificate (DSC) to e-file. It is mandatory to file the IT Forms using the Digital Signature Certificate by a chartered accountant.
  • If you are filing an ITR Form without DSC, then you have to generate an ITR-V Form. This form has to be printed, signed and submitted to the CPC, Bangalore through an ordinary post or speed post within 120 days from the date of e-filing.
  • You can also file an e-file IT Returns through an E-Return Intermediary (ERI) with or without DSC.

Checklist for e-Filing IT Returns

There are a few prerequisites to file your taxes in smoother and easier way. Below are the major points that have been highlighted below:

  • How to choose a right form to file your taxes electronically.
  • It can be a bit confusion to choose which type of form one should use to file the taxes online. The different categories of Income Tax Return (ITR) forms are:

ITR 1 (SAHAJ)

Individuals with income from salary and interest

ITR 2

Individuals and Hindu Undivided Families not having income from business and profession.

ITR 3

Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship.

ITR 4

Individuals and HUFs having an income from proprietary business or profession.

ITR 4S (SUGAM)

Individuals/ HUF having income from presumptive business.

ITR 5

Firms, AOPs, BOIs and LLP

ITR 6

Companies other than the companies claiming exemption under Section 11.

ITR 7

Persons including the companies required to furnish return under the section 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D)

  • Check your Tax Credit- Form 26AS Vs Form 16

The Form 26 AS can be checked before filing the tax returns. Form 26 AS shows the amount of tax that is deducted from your salary and deposited by the IT Department by your employer. Make sure that the tax deducted from your income should match with the amount that you have entered in Form 26 AS. If your form does not consist of any errors then you will receive a notice from the IT Department.

  • Claim 80 G, Savings Certificates and Other Deductions:

You can claim extra deductions in case if you have to claim them. Similarly, you can also claim deductions under 80 G on donations made to charitable institutions.

  • Interest Statement- Interest on Savings Accounts and Fixed Deposits.

A Deduction up to Rs 10, 000 is allowed on the interest earned on the savings accounts. The interest that is earned on the bank deposits, form a part of your taxable income and is taxable to the applicable income tax slab rates.

  • Including other documents: [Last Year’s Tax Returns, Bank Statements, Tax Deducted at Source (TDS) Certificates, Profit and Loss account Statements, Balance Sheet and Audit Reports, if applicable.
  • Ensure that your system adapts the latest Version of Java Runtime Version 7 Update 6 or above.

List of the Documents that are required while e-Filing an ITR

The Document check-list for e-filing an ITR are as follows:

General Details

  • Bank account details
  • PAN Details

Reporting Salary Income

  • Rent receipts for claiming HRA
  • Form 16
  • Pay Slips

Reporting House Property Income

  • Address of the house property
  • Details of the co-owners including their share in the mentioned property and PAN Details.
  • Certificate for Home Loan Interest.
  • Date when the construction was completed, in case under construction property was purchased.
  • Name of the tenant and the rental income, in case he property is rented.

Reporting Capital Gains

  • Stock trading statement is required along with purchase details if there are a capital gains from selling the shares.
  • In case a house or a property is sold, you must sought sale price, purchase price, details of registration and capital gain details.
  • Details of the mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs.

Reporting Other Income

  • The income from the interest is also reported. If the interest is accumulated in the savings account then you need to have your bank statements as well.
  • The interest income from the tax saving bonds and corporate bonds must be reported.
  • The income details are earned from the Post Office and must be reported.

Income Tax Slab Rates

The Income Tax Slab Rates for the Financial Year 2017-18 and for an Assessment Year 2018-19

(As Declared in the New Budget)

For the Individuals and the Hindu Undivided Family (whose age is less than 60 years):

Income Tax Slab

Tax Rate

Up to Rs 2, 50, 000

NIL

Above Rs 2,50, 000 and up to Rs 5, 00, 000

5%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

For the Individuals and HUF (whose age is 60 years and more and less than 80 years:

Income Tax Slab

Tax Rate

Up to Rs 3, 00, 000

NIL

Above Rs 3, 00, 000 and up to Rs 5, 00, 000

5%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

For Super Senior Citizens (Age- 80 years and more):

Income Tax Slab

Tax Rate

Up to Rs 5, 00, 000

NIL

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above Rs 10, 00, 000

30%

Note:

  • 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
  • 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.

Income Tax Slab rates for Year 2016-2017

For Individuals and HUF (Age- Less than 60 years):

Income Tax Slab

Tax Rate

Up to Rs 2, 50, 000

NIL

Above Rs 2,50, 000 and up to Rs 5, 00, 000

10%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

12% Surcharge is imposed in case of the total income above Rs 1 Crore.

For the Senior Citizens (Age- 60 years and above, but less than 80 years):

Income Tax Slab

Tax Rate

Up to Rs 3, 00, 000

NIL

Above Rs 3, 00, 000 and up to Rs 5, 00, 000

10%

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above 10, 00, 000

30%

Note:

12% surcharge is imposed in case the total income is above Rs 1 Crore.

For Super Senior Citizens (80 years and above):

Income Tax Slab

Tax Rate

Up to Rs 5, 00, 000

NIL

Above Rs 5, 00, 000 and up to Rs 10, 00, 000

20%

Above Rs 10, 00, 000

30%

12% of surcharge is imposed if in case the total income is above Rs 1 Crore.

Income Tax Return Due Date

The due date of the ITR Filing for the Hindu Undivided Family (HUF), Individuals, AOP (Association of Persons), BOI (Body of Individuals) is usually 31st July of the next Financial Year.

Like for an Example: The ITR Due Date for the Financial Year 2017-18 will be 31st July 2018.

How to File e-Returns

  • Fill in the Income Tax Returns Offline and upload it in the XML Format on the Official website: IncomeTaxIndiaeFiling.gov.in
  • Prepare and Submit the ITR Online.

Steps to Follow While Filing an Income Tax Return

Filing for an Income Tax Return online is not a tuff task. Just follow the below steps and file your ITR Online:

  • Firstly log in to the IncomeTaxIndiaeFiling.gov.in and register yourself.
  • Note: Your Permanent Account Number (PAN Number) is your User ID.
  • You can view your tax credit statement on Form 26 AS. The TDS as mentioned in the Form 16 must be tallied with the figures in Form 26AS.
  • Click on the Income Tax Returns Forms and select on the Financial Year.
  • Download the ITR Form that is applicable to you. If the exempt income exceeds Rs 5000, then the required form id ITR-2. (If the applicable form is ITR-1 or ITR- 4S you can complete the process on the portal itself by using the “Quick e-file ITR” link.
  • Open the Excel Utility- it is a downloaded return preparation software. Fill in the details using the Form 16.
  • Check the tax payable amount by clicking the “Calculate Tax” tab.
  • Pay the tax (if required/applicable) and fill in the Challan Details.
  • Confirm all the data that is provided in the worksheet by clicking the “Validate Tab”.
  • Generate the XML File and save it on your Desktop.
  • Go to the “upload return” on the Portal’s panel and upload the saved XML File
  • A pop-up is displayed asking you to “Digitally Sign the File”. if in case you already have a digital signature select the “Yes” option and if you do not have a digital signature then select the option “No”.
  • An acknowledgement form, ITR Verification (ITR-V) is generated which you can easily download.
  • Take a printout of the form ITR-V and sign it in Blue Ink.
  • Send the form by ordinary or speed post to the Income-Tax Department-CPC, Post Bag, Bangalore 560 010, Karnataka within 120 days of filing your returns online.

Steps to File ITR-1 and ITR-4S Online

Steps to prepare and Submit ITR-1 and ITR-4S (Sugam) online:

You have the option to submit ITR-1/ITR 4S forms by uploading in XML Format or by online submission.

  • Login the e-filing application.
  • Go to the “e-File prepare” and submit ITR Online
  • Select the Income Tax Return Form ITR-1/ITR-4S and the assessment year.
  • Fill in the details and click on the submit button and choose DSC (Digital Signature Certificate) (if available). Then click on the submit option.
  • After the submission, the acknowledgement details are displayed.
  • Click on the below link to view and generate a printout of the acknowledgement/ ITR-V Form.

For using a DSC, you need to register in the e-filling application. You can do it by logging in on the e-filling website of the IT Department and update the profile section. Under the Profile settings, you have to select the register digital signature certificate ad download the ITD e-Filing DSC Management Utility. This utility can be used to generate the DSC File.

Use of the Private Portals

You can also make use of the other websites to file your Income Tax Returns Online. These portals charge fees around (Rs 250-300) depending upon the kind of the services they provide.

Things to Keep in Mind While e-Filing

  • If the same mobile number is used by more than four tax payers, then you cannot file returns on the website unless the required change is done. Like for an example: in some instance, there are more than five returns that may be filed- yours, wife’s, mother-in law and the Hindu-Undivided Family (HUF) of which you are the Karta the executor of the will.
  • If your name is mentioned in the bank documents or the Official statements is a slight different from the name entered in the PAN Card, then the Portal will consider as a different individual. In some cases, the individual gives his/her father’s name as their middle name in their PAN Card but is not used in the Bank Accounts.
  • If you are a non-Indian Resident and need to file the Income Tax Returns, then you will require an India Number and a Foreign Number.

Income Tax on Pensioners

Pension is a form of income which a person gets in his retirement, which comes in every working individual’s life. It is also a stage in life where people get apprehensive about their finances due to lack of regular pay checks. And people get conscious about their lifestyle and worry about their expenses.

At such a time, pension plans ensures that you continue receiving regular income after your retirement, once the regular work pay checks cease. In India, government offers many pension schemes to inculcate savings habit in people, so that they can retire gracefully.

Income Tax Rules for Pensioners

Pension is a compensation offered by the past employer and employee for offering their service in the organization. Also note that, pension paid is based on a previous agreement of service and not on agreement for services. And as per the, Section 60 of the CPC and section 11 of the Pension Act, pension is an allowance or stipend given to a person for providing his service to the past organization which comes to an end upon the death of an employer. Hence, if a pensioner is getting their pension from a nationalised bank, a pensioner will get several deductions on salary income such as under section 89 (1). Also during tax deduction at source from the pension, adjustment will be done in terms of tax rebate under section 88 and 88 B.

Income Tax Form for Pensioners

Let us discuss the income tax form which is required for pensioners.

Form No. ITR 1 – Also known as Sahaj and is filed by the assessee. And this form is meant for the individuals whose source of income is salary and not for any business enterprises.

Also, pensioners can file their income tax returns by filling this form. This form is used by majority of salaried taxpayers who own one house and have their income which is taxable (Income from other sources) in addition to their pension.

Click to download Form No ITR 1.

Method of Filing Form No ITR 1  

Fill in the correct details and follow the below mentioned procedure:

  1. Part A – In part A, the applicants are required to fill their personal details such as his name, birth date, email id and other related information.
  2. Part B – In part B, the applicants are required to fill their Gross Total Income i.e. the salary from income.
  3. Part C – In part C of the form, the applicants has to furnish his deductions as provided in Form 16 and total taxable income.
  4. Now applicants are required to provide details pertaining in their operational bank account along with IFSC code and the branch and bank code of the same.
  5. Now, verification of the details so furnished has to be done.
  6. Also the applicants have to furnish details related to advance tax as well as payments made towards self-assessment tax in the part mentioned as Schedule IT.
  7. Applicants are also required to furnish details related to TDS (Tax Deduction at Source) from salary, under the part mentioned as Schedule TDSI.
  8. Under the part mentioned as Schedule TDS2, the applicant has to furnish details related to TDS having income sources other than salary.

Method of Tax Calculation for Pensioners

Generally pension is calculated through one’s income earned through salary under the head of salary in one’s ITR form. Pension is either paid in a monthly or as a lump sum amount and is known as commuted pension, whereas, pensions paid on a periodical basis is known as un – commuted pension and is liable to be 100% taxed.

  1. Commuted pension is received by the family of the tax payer, which is a lump sum payment and may be exempted from tax under the head income from other sources.
  2. And un – commuted pension is received by the family of the tax payer, however, subjected to a minimum of Rs. 15,000 or 1 / 3rd of the total pension amount is exempted from tax.
  3. Also, in case of sudden death of the employee, family pension is given on a monthly basis to a family member of an employee by his employer.

How much tax do I pay on my Pension?

In case the income of an individual exceeds the exemption limit, that individual is required to file income tax returns. And the pension income from an employer is taxed as salary income while interest on various investments is taxed as income from other sources. However, when it comes to PPF (Public Provident Fund), the interest income will be tax exempted. In case of your taxable income is above the exemption limit, that individual is required to file their Income Tax Returns.

Different Taxes in India – All about Direct and Indirect Tax

Every year at the end of the month of March, every company, organization, institution and the Government sector offices and even the employees working in the organizations etc. have so many questions revolving in their mind that- Do we need to Pay Tax? Are there any changes in the rates and schemes? Well, Taxes are mandatory. Every eligible citizen of India has to pay taxes.

What is Tax

Tax is a charge that is levied by the Central Government or the State Government of India. The tax charge is implemented for the betterment of the country’s economy and improving the standards and welfare of the country. The tax rules and the types of taxes are constituted by the Ministry of Finance’s Department of Revenue.

Different Types of Taxes in India

Various types of taxes in India are

  • Direct Taxes
  • Indirect Taxes
  • Other Taxes

Direct Tax

Direct Taxes are the taxes that are directly paid or imposed on the Government of India. These taxes are controlled by the Government body, Department of Revenue named as Central Board of Direct Taxes (CBDT). The different types of direct taxes in India are

  1. Income Tax– Income Tax in India is levied on anybody who earns an income in India, whether they are resident and non-resident. They are classified into some categories like- individual person, Hindu Undivided Family (HUF), Association of Person (AOP), Body of Individuals, Corporate Firms, Companies, Local Authorities and another artificial jurisdictional person who have earned an income and they are eligible to pay the income tax. The Income tax is charged on the total income of the previous year at the rates prescribed for the particular assessment year. According to the assessment year of 2017-2018, the income tax rates are categorized on the basis of the income slab.

The income tax rates are distributed in 5%, 10%, 20%, and 30% on the basis of the total income. A Surcharge of 10% of the income tax is added for the income between Rs 50 Lacs to 1 Crore. A surcharge of 15% is charged if the total income exceeds Rs 1 Crore. An Educational Cess of 3% is also charged in case of every individual.

For more details regarding the Income Tax rates for FY 17-18 please click here

  1. Capital Gains Tax– It is a tax gain on capital. If you are selling a property, bond or dealing any contract and you are gaining a profit in it, then you need to pay Capital Gains Tax. This type of tax is of two types- short term and long term. The long-term Capital Gains Tax is charged if the capital assets are charged for more than 1 year in a shared case and 3 years in the case of contract whereas short-term Capital Gains Tax is charged if it is less than the certain period mentioned above for the long term.
  2. Securities Transaction Tax– This type of tax is applicable, on the platform of stock exchange. If you are buying or selling equity shares, derivative instruments, equity oriented Mutual Funds, then the Security Transaction Tax is implemented.

The Current Security Transaction Tax Rates

Market Type Current Rate
Future and Options 0.017%
Capital Market (Delivery) 0.125%
Capital Market (Intra-Day) 0.025%

 

  1. Wealth Tax- This tax was imposed on one individual if their net wealth exceeds 30 lacs at the rate of 1% on the amount exceeding 30 lacs. Wealth Tax is no longer leviable from the assessment year 2016-17.
  2. Corporate Tax- Corporates are the annual or the yearly taxes that are payable on the income of the corporate organization operating in India. These are broadly classified as Domestic and Foreign Companies.

Indirect Taxes

Indirect Taxes are the taxes that are not directly levied on the taxpayer or the individual but indirectly imposed on the expense incurred by the individual. Like for an example, when we buy any product, we pay GST (Previously VAT or Service Tax in case of Services). Following are the types of indirect taxes

  1. Good and Services Tax (GST)– It is a type of Indirect Tax which is charged on the sale, consumption, manufacture of Goods and services at the National Level. GST was amended by the Constitution of India (122nd Amendment Bill) 2014. GST is implemented for the country’s economic growth and reduce the overall tax burden on the goods in the country. The other taxes that are included in the umbrella of GST are
    1. Value Added Tax (VAT)– The Sales Tax is complimented with Value Added Tax to make it uniform across the country. These taxes are applied when the goods are sold completely and finally to the customer. The VAT is now a part of Goods and Service Tax (GST)
    2. Excise Duty– Excise duty is the type of indirect tax that is levied by the Government on the goods and commodities that are manufactured in India. These goods are meant for domestic consumption. Ex-Salt, sugar, newspapers, Tobacco, Gasoline, Alcohol etc. Excise is also a part of GST now.
    3. Service Tax–  The Service providers are connected to the service tax. The service tax is charged on the aggregate amount that is received by the service provider. Example- leasing, The INTERNET, transportation etc. are subjected to the service tax. Service
    4. Customs Duty– These are the indirect taxes that are imposed on the goods that are imposed on the goods that are exported from India and imported to India.
    5. Sales Tax– These taxes are imposed by the Government on the sale and purchase of the goods in the Indian Market. These are charged on the movable goods. Anything you purchase in the market, you pay sales tax for it. Examples are- telephone, salon, the advertising company, health center etc. The last rate of the Sales tax is 14.5%. It is now replaced by GST as is the case with all above-stated taxes. For the restaurants serving alcohol, the tax charged will be 18%.
    6. Education, Healthcare are going to be exempted from GST.
    7. GST charges on the services on Non-AC Restaurants will be 12%.
    8. GST on Gold and Jewelry will be 3%
    9. GST on Diamond and Precious Stones will be 0.25%
    10. Petroleum Products and Liquor is not a part of the GST regime and is still under the VAT and Excise Model.

GST is divided into 3 parts

  1. Central GST (Levied by Union Government of India)
  2. State GST (Levied by Various State Governments)
  3. Integrated GST (Levied by Union Government when there is a movement of Goods or Services across state lines.

GST Rates comprises CGST + SGST which are equal and half of the below-given rates. GST Rate Slabs are given below

The GST Rates are distributed on the basis of the product category

GST RATES PRODUCTS
GST (0%) Milk, jaggery, fresh vegetables, unbranded honey and paneer, coconut water, Prasad, salt
GST (5%) Kerosene, Coal, tea, spectacles, cashew nuts, mat flooring, raisin, LPG, Footwear (<Rs 500), Apparels (<Rs 1000).
GST (12%) Butter, ghee, almonds, umbrellas, mobiles, packed coconut water, preparations of vegetables, fruits like (Chutney, Jam, Jelly, Pickle)
GST (18%) Hair Oil, toothpaste, computers, CCTV, cornflakes, staplers, ice cream, computer monitor (<17 inches), printers.
GST (28%) Luxury Products, Betting, Horse Racing, 5 Star Hotels, Cinema Tickets etc.

Other Indirect Taxes

  1. Professional Tax– It is the tax that is charged on the income on the basis of the profession or employment. An individual earning an income or anyone holding a profession such as a lawyer, doctor, interior or fashion designer etc.
  2. Municipal Tax– This tax is imposed by the local authority called as Municipality of the country. These are the local taxes that are paid to the Municipal Corporation if he or she owes a house property. These taxes are paid for the maintenance of sewage, road, civic services.
  3. Entertainment Tax– This tax is imposed by the State Government on the financial transaction that is related to the Entertainment. These taxes are imposed on movie tickets, stage/ theater shows, broadcasting, DTH and cable services. This tax is no longer active and covered under the umbrella of GST from July 1st, 2017 Onwards.
  4. Stamp Duty, Registration Fees, Transfer Tax–  When you are purchasing a property then you have to pay additional charges like the stamp duty, registration fees, transfer tax etc. This tax is levied by the Government for preparing the legal documents of the property. This is the tax is imposed over the handling of the title of the property ownership from one person to another. The amount varies from property to property.
  5. Education Cess and Surcharge– The Education Cess is divided into two types – Primary Education Cess and Higher Secondary Education Cess. This tax is levied by the Government to improve the education quality in the public schools and colleges. It comprises of the 3% of the income tax. The Cess charges are also included under the GST family structure. Whereas, the surcharge is an extra charge that is clubbed to your existing tax calculation. This tax is applied on the tax amount.
  6. Gift Tax– If you receive the gift from someone, it is merged with your income and you need to pay tax on it. This tax is called Gift Tax. This tax is applicable if the amount is more than Rs 50,000/- in a year.
  7. Swachh Bharat Cess – This tax is recently imposed by the Government. The tax is applicable to all the taxable services from 15th November 2015. The effective rate of Swachh Bharat Cess is 0.5%. Swachh Bharat Cess is abolished after the introduction of GST.
  8. Krishi Kalyan Cess– This tax is levied for the welfare of the farmers. The effective rate of the Krishi Kalyan Cess is 0.5%. This tax came into effect in the year June 1st, 2016. Krishi Kalyan Cess has been abolished after the introduction of GST
  9. Entry Tax– This tax is levied or charged on the goods that are bought within the state or from outside the state. Entry Tax is separately charged by the State Government of India. This tax is also known as the Octroi Tax. Octroi is no longer levied after the introduction of GST.

Some other forms of taxes are

  • Dividend tax
  • Infrastructure tax
  • Property tax
  • Luxury tax
  • Toll tax.

The above Cess mentioned like -Swachh Bharat Cess, Krishi Kalyan Cess, and the Entry Tax are no longer active now and they are clubbed with GST.

Latest Update- The latest report on tax says that after the introduction of the GST all the indirect taxes are merged under GST. So, the above taxes are removed due to the arrival of GST in the queue of Taxes. So, the taxes are reduced from number 25 to 10.

How To Calculate and Pay Advance Tax

An advance tax is a tax that is payable on total income of the year earned from different sources including your salary, business profession, rent etc during the financial year. This tax has to be paid by the end of the year. The advance tax is payable if the tax liability exceeds Rs 10,000 in a financial year.

The advance is applicable for a person if he/she has other sources of income other than the salary. If one is earning through the capital gains, interests on investments, house property, lottery or business. Any rebate due to attracts an interest rate of 0.5 percent of every month and six percent annually in case of the income tax refund. A fine of one percent every month and 12 percent every year if you do not pay your advance tax on time.

Who needs to File For Advance Tax?

Advance Tax is not applicable for Salaried Class i.e. they need not pay the advance tax because they are already paying tax at source. The employer deducts the tax at source from his/her salary. If in case the person is earning money from other sources then he/she has to pay or file an advance tax.

Some of the income sources that can attract Advance Tax

  • Income received through capital gains on shares
  • Interests earned on fixed deposits
  • Winnings earned from the lottery.
  • Rent or income earned from the house property.

Salaried, Freelancers or Businessman- If your tax liability is more than Rs 10,000 in a financial year and you are not getting the income tax deducted at source then you need to pay an Advance Tax. Senior citizens who are above 60 years of age, and do not run any business are exempted from paying this tax.

Presumptive Business- If the business income assumes to be 8% of turnover then they are exempted from the tax. This was applicable for 2014-15 and 2015-16 taxable year.

Presumptive Business for 2016-17- Starting financial year tax payers who opt for the presumptive scheme have to pay a whole amount of their advance tax in one installment on or before 15th March. The businesses with the turnover of Rs 2 Crores or less can opt for this scheme.

For Financial Year 2016-17- this scheme has been extended to professionals such as doctors, professors, lawyers, architects etc if their total income is 50 Lakhs or less than such types of tax payers have to pay tax on the quarterly basis that is quarterly installments.

When to File For Advance Tax

The Advance Tax or the self-assessment tax have to be paid on 15th September, December, and March in installments of 30% and 40% respectively. This scheme is applicable for the non-corporate. Whereas, the corporate need to pay their advance tax on 15th June, December, and March.

How To Pay Advance Tax

There are two modes of paying

  1. You can pay through the tax payment challans at the bank branches which are specially authorized by the Income Tax Department. It can be deposited by the authorized banks such as ICICI Bank, Reserve Bank of India, State bank of India, HDFC Banks, Allahabad Banks and much more.
  2. Another mode of paying advance tax is by paying it online through the official websites of Income Tax Department and National Securities Depository.

Online Method of Paying Advance Tax

The Advance Tax Challan 280 allows people to pay their income tax online on the official website of Income Tax Department. The individual have to visit the official website and select the challan and fill in the form with required details and use it to pay the tax online. You can also make the payment offline by downloading the challan from the Income Tax Welcome and fill it and submit in the bank.

The online tax can be paid online. This online facility is provided by the Income Tax Department. Listed below are the steps how to make payment for the advance tax online.

  • Visit the official website: www.nsdl.co.in
  • Select the right challan to pay your advance tax.
  • Provide the form with the correct details. The information include right assessment year, address, phone number, e-mail address, bank name, captcha code and other important details.
  • Once you are done with the details filing, you are then redirected to the payments page. The bank offers the Net Banking mode. Make sure that you recheck the amount that is shown on the screen.
  • Next, you’ll get the details of the payment done including the challan number.
  • It is important to report your payment after you are done with the payment. You can do this by adding an additional entry under the paid tax page.

Late Payment of Advance Tax

If the individual forgets to pay the advance tax before the deadline, then he will be charged with the interest. The individual will be charged at 1% on the defaulted amount every month until and unless the tax is paid off completely. The same interest penalty is applicable if the tax is not paid during the second and third deadline.

Calculating Advance Tax

An individual can calculate the advance tax on their own. Below listed are the steps where you can calculate the advance tax

Determine the income- Determine the income you receive other than your salary. It is important to include any ongoing agreements that might pay out later.

Minus the expenses- Deduct the expenses from the income. You can deduct the expenses related to your work especially “freelancing” such as rent of the work, place, travel, expense, internet and phone costs.

Sum up the Income- Add other income like the payments you receive from rent, interest income etc.  Then deduct the TDS from your salaried income.

Total Resulted Advance Tax– If the tax amount exceeds to Rs 10,000 then you receive the total advance tax.

Advance Tax Schedule

Listed below is the advance tax schedule for the Financial Year. As per earlier advance tax and tax schedule-

Due Dates Estimated Income For the Whole Year Advance Tax Paid of the Estimated Income Advance tax payable on actual income Shortfall in advance tax payment  

Interest u/s 234C

By 15th of June Rs 1200000 0 0 0 0
By 15th of Sept Rs 1500000 84975 131325 46350 1400
By 15th of Dec Rs 1700000 207030 262650 55620 1700
By 15th of March Rs 200000 437750 437750 0 0
Total 3100

As per the New Advance Tax Schedule and Tax Laws for the Financial Year 2017-18-

Due Dates Estimated Income For the Whole Year Advance Tax Paid of the Estimated Income Advance tax payable on actual income Shortfall in advance tax payment  

Interest u/s 234C

By 15th of June Rs 1200000 28580 65660 37080 1100
By 15th of Sept Rs 1500000 127460 196990 69530 2100
By 15th of Dec Rs 1700000 258790 328310 69520 2100
By 15th of March Rs 200000 437750 437750 0 0
Total 5300

The amendment has increased from Rs 3100 to Rs 5300. That means there is a hike of 71% of the interest burden on the tax-payer.

Refund of Advance Tax

At the end of the year, if the Income Tax Department knows that you have paid more tax than you should have paid then the department will refund the extra amount. The taxpayers can claim their refund by filing and submitting a Form 30. The claim has to be done within a year period from the last year of the assessment year.

Form 30- It is a claim request where the excess tax paid is refunded. The claim request form must be submitted by the person by the end of the financial year. The request is accompanied by a return in the form.

Advance Tax Benefits

  • Helps in reducing the stress of the tax payers.
  • It boosts up the tax collection process.
  • It increases the Government Funds, as the Government can earn interest on the collected amount.
  • Advance Tax saves people from defaulting on their tax payments.
  • It manages the business as well as their finances and provides an idea of the income they have earned throughout the year.