Saturday, June 1, 2019

Important Changes in Income Tax Return form for FY 2018-19 [Assessment Year 2019-20]


1.      Investment details in unlisted companies 
In case of tax payer is holding shares in an unlisted company then, they are required to disclose the details of the Holding in ITR-2, ITR-3 & ITR-4. The details required are extensive i.e.
- name of the company,
- PAN of the company,
- number and cost of acquisition at the beginning of the year,
- number of shares, face value,
- issue price (or purchase price) and date of purchase of shares acquired during the year,
- number and sale consideration of shares transferred during the year,
- number and cost of acquisition of shares held at the end of the previous year. 

2.      Mention of Director Identification Number [DIN] number
In case the tax payer is Director of a company, then they will be required to specify their DIN (Director Identification Number) in ITR-2 or 3 whichever is applicable. Along with this they need to furnish the following information :
- name of company,
- PAN,
- whether shares are listed or unlisted.


3.      Reporting Salary Income on Gross Basis
The new ITR forms have changed the mechanism of reporting of salary income. Now an individual has to mention his gross salary and then the amount of exempt allowances, perquisites and profit in lieu of salary shall be deducted or added to arrive at the taxable figure of salary income. Further, the tax payer also need to give separate details of all deductions allowable under Section 16, namely:
-        Standard deduction
-        Entertainment allowance 
-        Professional tax

4.      Complete details of buyer to whom you have sold property
If the tax payer has sold the property in FY 2018-19, then while filing ITR-2, they will be required to provide complete details of the buyer to whom they have sold the property. The details need to be given like:
-        Name of the Buyer
-        PAN of the Buyer
-        Percentage share in property
-        Amount
-        Complete Address of the property with PIN   


Wadhwa says, "The buyer details have to be provided irrespective whether the capital gains accrued are of short-term or long-term in nature. The details of buyer will have to be given if TDS is deducted by your buyer while making payment." 

5.      Online filing of Tax Return is mandatory for Everybody except Super senior Citizen [above 80 years].

6.      Changes in reporting of house property Income / Loss

Specifying the type of house property
While providing details of one house property in ITR-1, tax payer is required to specify whether the house is - 'Self Occupied', 'Let-out' or 'Deemed Let-out.'

Property wise details of rent arrears 
"While filing ITR-1 or ITR-2 as applicable, if there are any rent arrears that are received to the tax payer in FY 2018-19 then it have to report property wise as received. Say, If an individual has one house property which is let out during FY 2018-19, then the rent received is required to be reported in ITR-1. 


7.      Full disclosure of interest income
The tax payers are required to specify the full bifurcation details of the interest income or any other income received. Income from other sources head in ITR-1 has been updated to provide details of the source from where interest or any other income is received. 

8.      Residential status

Earlier the Tax payers were required to provide the details of residential status as resident, resident but not ordinarily resident or non-resident. From FY 2018-19 they need to provide additional information with respect to their residential status, such as,
-        number of days of stay in India,
-        jurisdiction of his residence and
-        tax identification number in case he is a non-resident. 

1.      Identification of Correct ITR Form for Tax Payer
-        ITR-1 (SAHAJ):
resident and ordinarily resident (ROR) individuals having total income of up to 50 lakh, having income from salaries, one house property, income from other sources and agricultural income up to 5,000. Non-residents cannot file ITR-1, irrespective of their source or quantum of income.
-        ITR-2:
Individuals not having income from profits and gains of business or profession (who cannot use ITR-1).
-        ITR-3:
Individuals having income from profits and gains of business or profession.
-        ITR-4 (SUGAM):
Individuals, and firms (other than LLPs), being a resident, having total income up to 50 lakh and having income from business and profession computed under the presumptive taxation scheme.
-        ITR-5 (SUGAM):

For persons other than:- 
(i) Individual,
(ii) HUF,
(iii) Company and
(iv) Person filing Form ITR-7


                                                                                                                    CA BIKASH BOGI 



Thursday, February 1, 2018

HIGHLIGHTS OF BUDGET 2018 (Based on FM Speech)

A.              DIRECT TAXES

INDIVIDUALS / HUF / AOP / BOI

Ø  No change in income tax rates, no increase in tax exemption Limit. Health and education cess has been increased to 4 per cent from 3 percent.
Ø  For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000.
Ø  Senior citizens can claim tax deduction of Rs 50,000 towards medical expenses.
Ø  Standard deduction of Rs 40,000 towards transport and medical allowance for salaried employees in lieu of transport and medical expenses. This deduction is also applicable for pensioners.
Ø  No tax to be deducted under Section 194A from bank interest up to Rs. 30,000 in case of senior citizens.
Ø  Long term capital gains exceeding Rs 1 lakh from sale of equities to be taxed at 10% without allowing benefit of indexation if the share is sold after January 31, 2018. This amendment is applicable for all. Only partial exemption shall be allowed.
Ø  5% of the variance allowed in  section 50C while taking  market value at the time of sale of Property  and calculating capital gains.

CORPORATES, INTERNATIONAL TRANSACTIONS / NRI / FOREIGN TAXATION OTHER PROVISIONS & OTHER MAJOR ANNOUNCEMENTS:

Ø  No change in Corporate Tax rate. Health and education cess has been increased to 4 per cent from 3 percent.
Ø  Companies with turnover of up to Rs 250 crore to be taxed at 25 per cent.
Ø  Benefit of reduced corporate tax rate of 25% is extended to all those companies whose turnover is 250 crore or less in the financial 2016-17
Ø  Deduction u/s 80JJA to extend to footwear and leather industry. NO of days of Employment shall be reduced for apparel industry.  
Ø  Electronic IT assessment will be rolled out across the country.
Ø  Tax benefit to farmer producing organisation similar to cooperative societies.
Ø  Tax benefits to MSME Sector.

B.               INDIRECT TAXES:
Ø  Mobile phones set to become costlier as custom duty on them has been increased to 20 per cent.
Ø  Customs duty on raw cashew cut from 5% to 2.5%.
Ø  Now MSMEs having GSTIN will avail easy loan facility.

C.              ECONOMY / INVESTMENTS / EXPENDITURES / OTHERS / HIGHLIGHTS :

*      The Budget is pro poor pro farmer. 
*      All the structural reforms will help the Indian economy grow in the medium and long term.
*      Govt. decides to take care health care protection to new level under AAYUSHMAN BHARAT. Providing 5 lakh rupees per family per year for medical reimbursement, under National Health Protection Scheme. This will be world's largest health protection scheme.
*      On purchasing power parity basis we are already the 3rd largest economy. 
*      Manufacturing sector is back on growth path, services sector too has resumed its high growth rate at 8%. Indian economy is on the course of achieving high growth of 8 %. Economy to grow at 7.2-7.5% in second half of 2018-19.
*      Our emphasis is on generating higher income for farmers, and want to help farmers produce more from the same parcel of land and realise higher prices for their produce,
*      Introduction of GST has made indirect tax system simpler; demonetisation has reduced cash in economy, promoted digital transactions.
*      Government is committed to minimum support price of 150% of input price per farm.
*      The Minimum Support Price (MSP) for all crops shall be increased to at least 1.5 times that of the production cost.
*      Food processing sector is growing at 8% per annum. Allocation of Rs 715 cr is being doubled to Rs 1400 crores.
*      Rs 2000 crores has also been allotted for building infra at agricultural mandis and farmer markets.
*      Proposal to extend kisan credit cards to fisheries. 
*      Will work on governments purchasing surplus solar electricity.
*      Setting up fishery and aquaculture development fund and animal husbandry fund, with a total corpus of Rs 10,000 crores.
*      Ujjwala scheme to amplify targets, will now provide 8 crore rural women free LPG connections.
*      Air pollution in Delhi-NCR has been a cause of concern, govt has proposed subsidised machinery for in-situ management of crop residue in Punjab, Haryana, Uttar Pradesh and NCT Delhi.
*      Govt of India will take necessary measures to put in place measures for the state government to purchase surplus solar power produced by local farmers at sutiable prices.
*      Proposal a sum of Rs 500 crore for 'Operation Green' on the lines of 'Operation Flood'.
*      Ujjwala scheme to amplify targets, will now provide 8 crore rural women free LPG connections
*      Institutional credit to agriculture to be raised to Rs 11 lakh cr in 2018-19.
*      Eklavya schools for tribal students. Committed to providing the best education to tribal students in their own environment and the setting up of Eklavya schools on par with Navodaya schools.
*      Target to provide all Indians with their own homes by 2022.
*      Budget allocates money for social security and protection programme for all widows and orphaned children.
*      Announcement of the launch of Prime Minister's Research Fellows from this year. 
*      Digital intensity in education is required for moving from black board to digital board.
*      Proposed integrated BEd programme for teachers. Training of teachers during service is essential." Technology will be the biggest driver in improving the quality of education. Lakhs of untrained teachers will be trained to help improve quality of education. To tackle brain drain, scheme to identify bright students pursuing B Tech in premiere engineering institutes, and providing them higher-education opportunities in the IITs and IISc. These students will receive handsome fellowships, and will be expected to dedicate a few hours to teach in higher education institutions weekly.
*      Govt will set up two new Schools of Planning and Architecture
*      Rs 16,000 cr to be spent on providing electricity connection to 4 cr poor households.
*      The Government is slowly but steadily progressing towards universal health coverage.
*      Government aims to bring 60 crore bank accounts under the Jan Dhan Yojana.
*      Two new schools of planning and architecture to be set up; 18 more in IITs and NIITs.
*      Govt will launch health scheme to cover 10 crore poor families.
*      Two new schools of planning and architecture to be set up; 18 more in IITs and NIITs.
*      Target of 3 lakh crore for lending under PM Mudra Yojana.
*      Government to contribute 12 per cent of EPF contribution for new employees in all sectors.
*      National Heritage City Development Augmentation Scheme has been undertaken to preserve and protect heritage cities in the country, announces the Finance Minister.
*      Rs 4.6 lakh cr sanctioned under MUDRA scheme and the target for loan disbursement under this scheme has been set at Rs 3 lakh crore for next fiscal. 
*      70 lakh farming jobs have been created this year, shows an independent study.
*      Women’s contribution reduced to 8.33% towards PF in the first 3 years for new EPF accounts.
*      Enhancing railway capacity is major focus of Govt.; Major program initiated for maintenance, safety, warning system and Fog safety of railways.
*       Employees PF Act to be amended to reduce the contribution of women to 8 pc from 12 pc with no change in employer's contribution.
*      Capital expenditure of Rs 1,48,528 crore for Indian Railways in 2018-19.
*      4,000 km of new railway track will be laid down by 2019.
All railways stations with footfall more than 25,000 to have escalators.
*      The government will undertake redevelopment of 600 major railway stations across the country.
*      10 prominent tourist sites to be developed as iconic tourist spots.
*      The government will boost the passenger handling capacity across India's airports by 5 times.
*      Airport capacity to be hiked to handle 1 billion trips every year.
*      Similar to Aadhaar, Individual enterprises too to have unique ID.
*      5 lakh WiFi hotspots will be set up in rural areas to provide easy internet access.
*      Proposal for revising emoluments - Rs 5 lakh for the President of India, -- Rs 4 lakh for the Vice President,  Rs 3.5 lakh for the Governors.
*      Hike in allowances of MPs in every 5 years on basis of inflation.
*      Govt. proposes to amend RBI Act
*      Government does not consider crypto-currency as legal; will take all measures against its illegal use.
*      There is huge increase in number of filing of ITR.
*      41% more return have been filed by entities under presumptive tax scheme.

By Bikash Bogi 


Important Changes in Income Tax Return form for FY 2018-19 [Assessment Year 2019-20]

1.       Investment details in unlisted companies   In case of tax payer is holding shares in an unlisted company then, they are requir...