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The GST Council on Saturday has cut down the GST Rates on 33 Items from 18% to 12% and 5%. This is done to simplify the indirect tax regime. Puducherry Chief Minister, V Narayanaswamy announced after 31st Meeting of the council. He also said that, 33 items will be cut down from 18% GST to 12% and 5%, except for the luxury items as these products are the most commonly used in day to day life.
The main motive of this plan is to rationalize the Highest Tax Bracket 28% and out of which 99% of over 1200 Goods and Services will attract 18% GST or less than that.
A total of seven items have been removed from 28% GST Slab. Six Items have been removed from 28% GST Bracket and placed in 18% GST Slab.
The Six Items are –
Pulleys, Transmission Shafts, Gear Boxes
Power Banks Made up of Lithium-Ion Batteries
TV (up to 32 Inches)
Video Game Consoles and other games and sports requisites
Whereas the Parts and Accessories for carriages for disabled people have been dropped down from 28% GST Slab to 5% GST Slab.
Other than that, the Movie Tickets up to Rs 100/- are brought under the 12% GST Slab which were earlier in 18% GST Bracket and the Movie Tickets costing above Rs 100/- are now in 18% GST Slab. The Director and the Producer Karan Johar expressed his happiness by tweeting our Prime Minister “Narendra Modi”
The Pilgrims traveling in the economy and business class has to pay the same tax, there are no changes in that tax bracket. The services supplied by the banks to the Basic Savings Account has been exempted from GST.
The 31st GST Council Meeting was held today in Vidhan Sabha under the chairmanship of the Finance Minister- Arun Jaitley. The GST Council has agreed to set up a Centralized Advance Ruling Authority said Arun Jaitley.
Income Tax Return is the income tax return which you need to file when you have income, depending on the slab range stated by the Government of India. It stores the complete data about the incomes and the investment of a person in a certain fiscal year. For filing an ITR online you need to e-file it online.
What is an e-filing?
The process of electronically filing the income tax return using the internet is known as e-filing. It is a mandatory process for all the companies and firms and individuals requiring the statutory audit and submits the income tax return for the Annual Year 2017-18. The e-filing procedure is possible with or without the digital signature.
Filing an income tax return online can help the person fill all the following relevant information online and can submit the form online itself.
This step by step guide will help you file your ITR quite easily
- Gather All the Information and Documents
Before starting filing an income tax return, make sure you keep all your documents, papers and identity card information ready. This will shorten out your time and will not keep you in a mess. The documents that you need while filing an ITR are
- PAN Card- Permanent Accountant Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department. A typical PAN is AABPS1205E.
- Form 16 received from your employer- Form 16 is only applicable for the service employers. If you are a salaried person and your employer has deducted TDS on your salary, then he/she will issue you a Form 16. Form 16 shows the salary earned by an employee during the year, deductions and tax deducted or TDS on your salary during the year. This is known as the TDS Certificate.
- Form 16A received from Banks- It is the TDS Certificate showing the tax deducted at source by other deductions such as the bank’s other institutions on the interest/commission that you have earned this year.
- Form 26AS- It is the tax deducted and deposited on your behalf by your deductors. It is provided by the Income Tax Department. It shows you the total tax paid against the PAN during a financial year. you can download this form by logging in to your Income Tax E-filing Account.
- All Your Bank Statements
- Property Details
- Home Loan Certificates
- Business/Professional Income Details
- Self-Assessment Challan/ Advance Tax Challan
- Investment Proofs
- Now visit the e-filing website – www.incometaxindiaefiling.gov.in
- If you are a first-time user and you are filing it for the first time then click on the “New Registration tab” and register yourself by providing the relevant information about yourself and create your personal username and password. Make sure that when you are creating your user-id you must have your e-mail id and mobile number active.
- After the registration, an active link is provided. After clicking on the activation link, you are given a one-time password (OTP), where you have provided the OTP which has been sent to your mobile number.
- Click on the registered user if you have registered yourself already on the website. If you have any issues or problem related to the registration process you can contact the customer helpline number.
- Now click on the login tab and provide the required details like- your User ID, your PAN details, date of birth, and the captcha code was given. Then click on the login button to get signed in.
- After logging in, your account dashboard appears on the screen. Click on the “e-file tab” and select “Prepare and submit ITR online” option.
- Now select the relevant form and the assessment year for which the ITR must be filed. Here the taxpayer can fill in the address from the PAN database or add a new address. Here the income tax department asks you whether you want to digitally sign your return. If you select the “Yes” option then you need to upload your digital signature which needs to be pre-registered at the income tax official website.
- Now click on the submit button, and the website will redirect you to the page for filling to the form selected by you. Before starting e-filing the ITR form, one should read the General Instructions given at the start of the form.
- After that, you will be given to fill in the required information in different tabs, like the General Information, Income Details, Tax details, taxes paid in the ITR form. Make sure the tax payable shown in the online form matches the information and calculations given by you.
- Before submitting final, you need to save the data you have provided earlier and recheck it to avoid any mistakes. Once “Preview and Submit button is chosen your form will appear on the screen allowing you a preview of your ITR form before the final submission is made.
- Once the submit button is clicked your ITR will be uploaded and you will be asked to verify your return using any of the options available.
- If you have already added your digital signature, you will be asked to upload the same signature while submitting your ITR at the final step. Once it is upload and the final submission is made then your ITR filing process is completed and no further verification is required. You don’t have to send an acknowledgment/ITR-V to the CPC Bangalore.
- If you haven’t uploaded any digital signature while filing an ITR then you can verify your return either electronically using Aadhaar OTP or by sending a signed-printout of the ITR-V sent to CPC Bangalore within 120 days from the date of e-filing.
- An acknowledgment/ITR-V is sent on your registered e-mail ID once you have successfully uploaded. This acknowledgment pops out on your account on the e-filing website from where you can download if it is required.
- Now the department will process your ITR once you verify it. After your ITR is processed you will be intimated about the email via email and SMS on your registered mobile number.
So, you can now easily file your Income Tax Return (ITR) without any complication.
provide links to previous income tax post once published.
Income Tax is an annual tax which every earning individual, corporate firms, local authority and company has to pay. And the tax depends on the annual income of a person or entity where the cycle starts from 1st April in a year and ends on 31st March of the next year.
And every individual, firm or a company should file their income tax returns for a financial year on or before the 31st of July of the next financial year. Under section 139 (1), the normal due dates for filing of income tax return is:
|Where the taxpayer is
2. Any person mandatorily required to get his tax audit done
3. A working partner of a firm whose accounts are required to be audited
|30th September of the Assessment Year|
|In case of any other category of taxpayer i.e. Salaried / self-employer who are not required to get their tax audit done||31st July of the Assessment Year|
However, if you have missed your due date for filing your income tax return, you can do so belatedly under section 139 (4).
Belated Return of Income Tax
As discussed if a taxpayer fail to file income tax returns on or before above-mentioned date under section 139 (1) can still pay it belatedly, or
If the taxpayer receives any notice under section 142 (1) from the income tax officer in case income tax return is not filed stating to file the required tax within the time specified in the notice and he has missed the due date of the notice as well can still file the income tax return. Such income tax returns which are filed after the due date are called “Belated Return”.
And one can file the belated return at any time of their convenience before the end of the relevant assessment year.
Also, ponder upon following points regarding Belated Return:
- Considerable Assessment date means the due date on which the order of assessment is passed and not on which the taxpayer has received the order
- If the return is filed after the assessment which gets cancelled, the return would still be considered as valid
- Belated return of loss from business/profession is not applicable after the normal due date
- Under the Finance Act 2016, Belated Returns filed under section 139 (4) can be revised, which is applicable from Assessment Year 2017 – 18 onwards.
- The taxpayers are required to pay interest of 1% (simple interest) per month along with tax under section 234 A in case the return is filed after the income tax due date.
What are the penalties for late filing Income Tax Return?
Late filing income tax return is subjected to penalty i.e. penalty of Rs. 5000. Although this penalty has to be paid once the taxpayer receives a notice from the income tax officer, else the penalty is not automatically levied. Hence this penalty depends on the assessment officer.
The much awaited Goods and Service Tax (GST) has been introduced on and from July 1st 2017. In the new taxation system, instead of various taxes like Value Added Tax (VAT), Excise Duty, Service Tax, Central Sales Tax (CST), Customs Duty etc, there will be one tax known as Goods and Service Tax (GST).
While celebrations marked the successful implementation of most ambitious New Single Indirect Tax Regime, confusion and anxiety kicked in amongst the consumers and traders. Hence, Central Board of Excise and Custom (CBEC) launched the one stop GST facilitation centre in February 2017, in order to assist tax payers and businesses uploading GST returns.
Needs of GST Seva Kendra
GST Seva Kendra started off to prepare India for the newly reformed taxation system i.e. GST – Goods and Service Tax. After two months of its implementation most of the India is now GST registered hence, GST Seva Kendra is now set for further assistance like GST migration and GST return filing.
Services Offered at GST Seva Kendra
- Information brochures, documents, Trade Notices, forms etc.
- Assistance to taxpayers in helping them understands legal provisions, procedures and documents.
- Helping with the expeditious disposal of their GST applications, references etc. pending with any Departmental authority in the Commissionerate.
- Assisting the taxpayers in getting requisite support from GSTN / DG Systems, CBIC.
- Enhancing taxpayer satisfaction under GST, an area of critical importance to Government, by careful analysis of the prescribed ‘Taxpayer Satisfaction Forms’ for identifying areas of improvement.
How to Find a GST Seva Kendra
The Central Board of Excise and Custom has opened more than 8000 Seva Kendra Centres across the nation in all the districts. All Seva Kendra’s are connected to the GST Network and Central Board of Excise and Customs portals and is manned by trained officers.
- GST Seva Kendra’s are open from 9:30 am to 5:30 pm on all working days.
- One can walk into these offices or they can also take appointment before the visit.
GST Seva Kendra Centres in Major Cities
- Delhi – There are more than 202 GST Seva Kendra offices in Delhi
- Mumbai – There are more than 178 GST Seva Kendra offices in Mumbai
- Bengaluru – There are over 50GST Seva Kendra Centres in Bengaluru.
- Kolkata – There are more than 194 GST Seva Kendra Centres in Kolkata
- Hyderabad – There are more 70 GST Seva Kendra Centres in Hyderabad
- Chennai – There are more than 55 GST Seva Kendra Centres in Chennai.
Find more details about GST Seva Kendra at CBEC Official website @ www.cbec.gov.in
Tax saving is one of the important part in financial planning. In today’s time, earning is not sufficient. One has to plan their investment as well. Also, financial year is about to begun and both the salaried and non – salaried taxpayers would compare tax saving investment options.
In India there are lot of investment options are available to choose from. Some of them are traditional as well as new investments options that have become popular in recent years.
In this article, we have listed out some tax savings investments with tax exempt returns as well. And all the tax saving schemes differs in terms of features and asset – class. Hence, it is important to them before making a choice.
Equity – Linked Savings Schemes
Equity Linked Savings Schemes or ELSS is offered by Mutual Fund of India. It is also a tax benefit scheme under section 80 C of the Income Tax Act 1961. The lock in period or minimum maturity period is three years. The minimum investment is Rs 500. However, there is no upper limit on the maximum investment; tax is exempted only up to 1.5 lakhs per year.
The returns in ELSS depend on the performance of equity markets and also they are neither fixed nor assured.
There are two options for investing into ELSS; they are the Systematic Investment Plan (SIP) and the Lum Sum Investment Plan.
Public Provident Fund (PPF)
PPF or Public Provident Fund is a government backed scheme, which a tax is saving scheme floated under the PPF Act 1968 by the Central Government. This scheme is considered to be one of the safest investment product launched by the Indian Government. The main aim of Public Provident Fund or PPF is to encourage savings amongst the Indians and encourage them to create a retirement corpus.
The Reserve Bank of India specifies the rate of interest from time to time that is applicable to the PPF account. It is the Central Government who sets and announces the latest PPF Interest Rates. The current rate of interest of the PPF for the year 2017 – 18 is 7.9%.
There are various benefits of PPF such as it serves as a long – term investment option. As they offer a deposit period of 15 years and a lock – in – period of 7 years. And this scheme is quite beneficial for a retirement individual, as it provides long – term tenures, compounded and tax – free returns and capital protection make it perfect for building a retirement corpus.
Certain eligibility criteria’s has been fixed for PPF such as PPF accounts should be opened one account per person. The nationality of the individuals should be Indian. They should have attained an age of 18 years at least. There is no upper limit for opening this account.
Employees’ Provident Fund (EPF)
The Employees’ Provident Fund Scheme also known as the Employees’ Provident Fund and Miscellaneous Act 1952 is backed by the purview of the Government through the Ministry of Labour and Employment.
The main motive behind this scheme is to promote retirement savings for employees across India. The EPF is a corpus of funds that is built on a regular, monthly, contribution made by an employee and his / her employer. EPF is nothing but the balance deducted every month from your salary along with an amount that is contributed to your EPF Account by your employer. Opening an EPF account is considered to be a good idea for retirement savings.
In EPF the amount which is contributed to the fund is based on a fixed rate. An employee earns interest on their EPF balances. Both the interest earned and the total amounts withdrawn at maturity are tax – free, making this one of the most popular forms of long – term retirement savings among the working population in India.
There are various benefits of Employees’ Provident Fund (EPF) as well, which are as follows:
- The interest earned on funds held in an EPF account is tax – free
- Also in this account, savings is ensured as funds in the account are not easy to withdraw
- At the end the amount saved would provide financial security at the time of retirement. However, premature withdrawal are allowed in certain exceptional cases
- This is a sound savings option for employees with long – term investment goals
Certain eligibility criteria have been fixed for the scheme such as employees are eligible for membership on the day of joining an establishment. This includes eligibility for provident funds, insurance and pension. Establishments with 20 or more employees have to provide PF to their employees. The act does not apply to the State of Jammu and Kashmir.
Unit Linked Insurance Plan (ULIP)
ULIP or Unit Linked Insurance Plan is the market – linked products that offer the best investments schemes and programs provided by Insurance Companies. Unlike the other insurance policy programs, this insurance plan gives investors both insurance and investment under a single integrated plan. This plan is linked to the capital market and provides flexibility to invest in the equity or the debt funds. These products provide a risk cover for the policy holder along with the investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.
The aim of the Unit Linked Insurance Plan (ULIP) is to provide investment to those who are seeking to invest in an investment cum insurance product.
There are various types of ULIP such as:
- ULIP for Retirement
- ULIPs for wealth collection
- ULIPs for children education
- ULIPs for health benefits
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) is backed by the government which is launched by the Prime Minister of India. SSY is a small deposit scheme which is specially meant for the “Girl Child”. It is a part of “Beti Bachao, Beti Padhao” campaign.
The aim of the SSY is to provide a better future for the girl child in India. This scheme will provide support to the girl child from the education to the marriage of a girl. This scheme focuses on the benefits in the field of education, hygiene, and security.
|Equity – Linked Savings Schemes
|Public Provident Fund (PPF)
|Employees’ Provident Fund (EPF)
|Unit Linked Insurance Plan (ULIP)
|Sukanya Samriddhi Yojana (SSY)
|Investment||ELSS is a type of mutual fund scheme where most of the fund corpus is invested in equities or equity – related products||Pension mutual funds invest 40% of the money in equity and 60% in debt instruments.||EPF is a long term investment tool by investing in it one can secure their retirement days||ULIP is basically a fund operated investment tools in which charges are deducted for operational matters and rest goes as investment in various funds||One requires to invest in the scheme before 10th of every month, as the amount deposited after the 10th will not earn any interest|
|Returns||Not fixed. It depends on the performance of equity market. However, in the past, ELSS has given average returns of 12% – 14%||The returns in pension mutual funds are not fixed as it depends on the performance of the equity and debt market. Pension mutual funds have given an average return of 8% – 10% for a5 year and 10 year period||These are secured and steady instruments of investments and they provide guaranteed returns on your savings||The average category return of small and midcap ULIP funds is 16%, which is only slightly lower compared to their mutual fund counterparts||At present, it is 8.1 per cent and provides income – tax benefit|
|Lock – in – period||3 years||Until you reach the age of 58||5 years||5 years||Sukanya Samriddhi Yojana matures when the girl child, who is the account holder of the account, turns 21 years|
|Risk – factor||Risky investment||Risk – free investment||Risky investment||Risky investment||Zero risk factor|
|Online option||Online option for starting ELSS is available||One can invest in PPF online||One can invest in EPF online||One can invest in ULIP online||You can open Sukanya Samriddhi Account either in post office or any other commercialized banks|
|Liquidity||One can withdraw money from ELSS anytime after 3 years||One cannot withdraw the funds before retirement. The standard retirement age is taken as 58 years||Withdrawals after completion of 5 years of continuous service in the EPF are tax – free. However, withdrawals made before completion of 5 years of continuous service are subject to tax||There is no fixed amount that you can withdraw. However it varies across insurers and policies||The Sukanya Samriddhi account holder can withdraw up to 50% of the total savings for fulfilling the purpose of marriage or higher education of his / her girl child. It allows partial withdrawal only after the girl reaches the age of 18 years.|