Category: Tax

Interest On Securities Under
Income-Tax Act

View Sample Report

Introduction

The term ‘interest on securities’ is characterized under section 2(28B) of the Income Tax Act, 1961 which means the interest on protections of the Central or a State Government and interest on debentures/different protections given by or for a neighborhood authority/an organization/a co-employable society laid out by the Central or State or Provincial Act.

Section 193 of the Income Tax Act manages the arrangements of allowance of TDS on interest on securities.

Brief Of Arrangements Of Section 193

According to arrangements of Section 193, any individual who is paying interest on protections to an occupant is expected to deduct TDS. Along these lines, the arrangements of segment 193 don’t make a difference to the installment of interest on protections for a non-inhabitant.

The Rate Of TDS On Interest On Securities

The Deductor is obligated to deduct TDS @ 10%. Notwithstanding, on the off chance that the payee neglects to outfit his Permanent Account Number (PAN, all things considered, the Deductor would be responsible to deduct TDS at the most extreme minor rate.

The Time Of Deduction Of TDS On Interest On Securities

The Deductor is expected to deduct TDS before the accompanying occasion – At the time credit of pay to the record of the payee; or at the hour of installment in real money or check or draft or some other mode.

The Time Limit For Deposit Of TDS On Interest On Securities

The Deductor deducting TDS on interest on Securities, according to arrangements of segment 193 of the Income Tax Act, is expected to store the deducted TDS in 7 days of the following month in which the TDS is deducted. Further, the TDS deducted for the long stretch of March is to be kept on 30th April.

Issuance Of TDS Certificate

The Deductor deducting TDS according to area 193 of the Income Tax Act is expected to give TDS declaration in Form 16A inside the accompanying due dates –

1. April to June – 15th August
2. July to September – 15th November
3. October to December – 15th February
4. January to March – 15th June

TDS Return Filing

The Deductor at risk to deduct charge under segment 193 of the Income Tax Act is expected to record a quarterly return in Form 26Q inside the accompanying due dates –

1. April to June – 31st July
2. July to September – 31st October
3. October to December – 31st January
4. January to March – 31st May

List Of Interest To Which Arrangements Of Section 193 Don’t Apply

No TDS is to be deducted for interest payable on the accompanying Securities-

• Interest in long-term National Savings Certificate (IV issue).
• Interest in the National Development Bonds.
• Interest on 4.25% National Defense Loan, 1968 or National Defense Loan, 1972 held by an Individual.
• Interest on 4.25% National Defense Bonds, 1972 held by an occupant Individual.
• Interest on the Security of the Central Government or a State Government given the interest sum doesn’t surpass INR 10,000.
• Interest on 6.5% Gold Bonds, 1977 or 7% Gold Bonds, 1980 held by an inhabitant Individual provided that the absolute ostensible worth of the bonds didn’t surpass INR 10,000 whenever during the period to which the interest relates.
• Interest in debentures given by informed organization/authority/public area organization/a co-employable society.
• Interest to the Life Insurance Corporation on the protections possessed by it or in which it has a full advantageous interest.
• Interest to the General Insurance Corporation on the protections possessed by it or in which it has a full advantageous interest.
• Interest to some other safety net provider on the protections possessed by it or in which it has a full valuable interest.
• Interest in protections provided that gave by an organization in dematerialized structure and recorded on the perceived stock trade.

Exception Limit Under Section 193 Of The Personal Duty Act

There is no exclusion limit determined on account of TDS under segment 193 aside from the two following cases-

1. For the situation of debentures given by recorded organizations, the cut-off is Rs. 5000 given such a sum ought to be given by a record payee check.
2. On account of 8% saving (available) securities, the breaking point is Rs. 10, 000.

 

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Load More

What are Late Fees and Interest Rates for Gst Returns

View Sample Report

The Goods and Services Tax (GST), introduced in 2017 as a totally new taxation regime, has undergone several amendments since its launch. These amendments have often caused confusion among taxpayers, resulting in multiple extensions of deadlines for filing the returns and a lesser number of taxpayers complying with the return filing process. As a result, it became critical to tightly enforce the return filing procedure by attaching late fines and interest on late GST payments.

Late filing of GST Returns 

Any delay in filing the GST returns before the deadlines (including extensions, if any) as prescribed by the taxation department is deemed non-compliance and attracts a strict penalty as per the GST Act. The penalty amount depends on the number of delayed days from the date and is determined supported by the sort of returns filing that will broadly be classified into three categories:

Non-annual GST Returns Late Fees:

• If a taxpayer misses the deadline for filing GST returns, he or she would be charged Rs. 100 per day under the CGST Act and Rs. 100 per day under the SGST Act, bringing the total GST late fees per day to Rs. 200.
• Under the GST Act, the Income-tax department can assess a maximum late fee of Rs. 5000 for each return.
• The GST late filing penalty has been decreased to Rs. 25 per day under the CGST legislation and Rs. 25 per day under the SGST law, for a total of Rs. 50 per day for both intrastate and interstate supplies, thanks to recent revisions to the GST Act.

Late Fees on GST Annual Returns (GSTR-9)

• The penalty for late filing of GST annual returns is similar to the penalty for late filing of non-annual returns.
• The taxpayer is charged a late fee of Rs. 200 per day, i.e. Rs. 100/- per day under the CGST Act and Rs. 100/- per day under the SGST Act. 
• The total GST late fees for a given financial year cannot exceed 0.25 percent of the taxpayer’s total turnover.

Fees for late submission of NIL returns 

• Even if no GST payments were made to the Income Tax Department, a NIL return must be filed. 
• In the case of late filing of NIL returns, the taxpayer was charged a late fee of Rs. 50/- per day under the CSGT act and Rs. 50/- per day under the SGST act, for a total of Rs. 100 per day. 
• The new GST modifications, however, have lowered this penalty to Rs. 20 per day, i.e. Rs. 10 per day under CGST and Rs. 10 per day under SGST.

GSTR Form	Tax Period	The Period In Which Returns Shall Be Furnished	Late Fee Applicable
Form GSTR-3B	July 2017 to April 2021	Between 1 June 2021 and 31 August 2021	Capped to Rs. 500 (Rs. 250 under CGST and Rs. 250 under SGST) per return for taxpayers without any tax liability during the said tax period
Form GSTR-3B   (Taxpayers with AATO up to Rs. 1.5 Crores)	Preceding year	Prospective Taxation period	Capped to a maximum of Rs. 2000 (Rs. 1000 each under CGST and SGST)
Form GSTR-3B (Taxpayers with AATO between Rs. 1.5 Crores and Rs. 5 Crores)	Preceding year	Prospective Taxation period	Capped to a maximum of Rs. 5000 (Rs. 2500 each under CGST and SGST)
Form GSTR-3B (Taxpayers with AATO more than Rs. 5 Crores)	Preceding year	Prospective Taxation period	Capped to a maximum of Rs. 10000 (Rs. 5000 each under CGST and SGST)
Form GSTR-4   (For Composite Taxpayers)	Preceding year	Prospective Taxation period	Capped to Rs. 500 (Rs. 250 under CGST and Rs. 250 under SGST) per return for taxpayers with NIL tax liability
Form GSTR-7	Preceding year	Prospective Taxation period	Reduced to Rs. 50 per day (Rs. 25 SGST and Rs. CGST) and capped to a maximum of Rs. 2000 (Rs. 1000 each under CGST and SGST) per return

Interest in GST Overdue Payments

 GST payments that are made beyond the due date are charged interest. In the following cases, 

• Taxpayers are typically required to pay interest: If you pay your GST beyond the due date, you will be charged interest at the rate of 18% per year starting the day after the due date.
• When a taxpayer takes advantage of an excess input tax credit or reduces an excess output tax burden, interest of 24 percent per year is charged.

In addition to the previous relief measures for GST late fees, taxpayers have been awarded further relief for interest on GST late payments. Here’s a table summarising the reintroduced interest on late GST payments for the months of March and April 2021:

Taxpayer and Return Type	Tax Period	Taxpayer Class based on AATO	Filing Due Date	Reduced Rate of Interest				Waiver of Fee till
				First 15 days from Due Date	Next 15-days	From the 31st day onwards
Normal taxpayers filing monthly returns in Form GSTR 3B	March 2021	Upto Rs. 5 Crores	20 April 2021	Nil	9 percent	18 percent	20 May 2021
		More than Rs. 5 Crores	20 April 2021	9 percent	18 percent	18 percent	5 May 2021
	April 2021	Upto Rs. 5 Crores	20 May 2021	Nil	9 percent	18 percent	19 June 2021
		More than Rs. 5 Crores	20 May 2021	9 percent	18 percent	18 percent	4 June 2021
Taxpayers under QRMP scheme filing quarterly returns	March 2021	Form GSTR-3B (quarterly)	22/24 April 2021	Nil	9 percent	18 percent	22/24 May 2021
	April 2021	Form GST PM-06 Challan	25 May 2021	Nil	9 percent	18 percent	Not Applicable

 

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Equipment Finance Scheme For Existing Clients –  TIIC View Sample…

Read More

Documents Required For GST Registration View Sample Report Goods and Services…

Read More

Load More

All About Income Tax Return Form 5

View Sample Report

The IT Department has introduced different forms for simple and convenient ITR Filing. it’s important for you to understand which form has relevance to your source of income. supported the identical, you would like to file the shape before the last date of return filing as specified by the taxation department. ITR 5 is one such form that’s ideal for a particular class of taxpayers. Some critical aspects of ITR 5 filing are discussed ahead.

What is ITR 5 form and who is eligible for it?

The ITR Form 5 could be a form suitable for bodies like firms, Body of people, financial obligation Partnerships (LLPs), Artificial Juridical Person (AJP), Association of Persons (AOPs), the estate of insolvent, the estate of deceased, investment fund, business trust, bureau, and co-operative society for filing the ITR. someone or entity belonging to the aforementioned categories is eligible for ITR 5 filing.

Notable Changes In The ITR-5 Form In AY 2021-22

Tax deduction claims against investments or spending made between 1 April 2020 and 30 June 2020 under Chapter VIA of the Income Tax Act, 1961, which includes:

Section 80C (LIC, PPF, NSC, etc)

• 80D (health insurance)
• 80G (donations)Deposits in current accounts, foreign travel expenses, and electricity bills paid.

The requirement to furnish the following data:

• Recognition from DPIIT as a start-up company
• Declaration filled in Form-2
• Partnership firm details
• Bifurcation of donations through cash and non-cash payment modes Gross GST receipt/ turnover reported

The structure of ITR Form 5

The ITR 5 Form is split into two parts—Part A and Part B.

In Part A, you would like to produce details, which include general information, record details on the day of the fiscal year, manufacturing account details for the fiscal year, trading account details for the fiscal year, profit and loss account information for the fiscal year, and other information.

In Part B, you’re required to furnish details of the computation of your total income and therefore the calculation of liabilities on your total earnings.

Aside from the aforementioned facts, the ITR 5 Form also includes information on crucial components of the organization. Some key schedules include:

• Schedule HP – Information about any earnings from house property
• Schedule CG – Details about any capital gains
• Schedule BP – Information regarding the calculation of income from business
• Schedule DCG – Details about any capital gains earned by selling a depreciable asset 
• Schedule DOA – Information about the depreciation of an asset 
• Schedule DPM – Details about the depreciation of machinery and/or plant

How are you able to file ITR Form 5? 

You can file an ITR 5 form online on the website of the tax Department in two ways. the primary way is by furnishing the return using your digital signature, electronically. in our own way is to transmit the info then submit the verification of the return using ITR 5 form. 

Once the ITR 5 filing is complete, you wish to print a group of its copies. you’ll retain one copy for your records, and sign and send the second copy by post to Post Bag No.1, Electronic City Office, Bengaluru – 560500. Moreover, if your firm’s accounts have to be audited under Section 44AB, you wish to furnish the return electronically with a digital signature.

It is important to notice that no document should be given the return form once you file the ITR 5 Form. If such documents are attached to the ITR Form 5, they’ll be removed and handed back to you. you want to match the number of taxes deducted, paid, or collected by you or on your behalf with the decrease Statement in Form 26AS.

 How to fill out the verification document?

 1. Input all necessary details.

2. Check if the info furnished is correct, such as:

• Name
• Address
• Contact details
• PAN 
• Filing status
• Audit information
• Income details
• Debts
• Tax liability
• Taxes paid

3. make sure the document is duly signed or attested.

4. Indicate the person signing/verifying the return’s designation/capacity.

How to file income tax returns using the ITR-5 form?

Filing ITR 5 Form Online

 1. Visit the Income Tax Department’s official e-filing portal www.incometaxindiaefiling.gov.in

2. Electronically transfer the data in the return form.

3. Include your digital signature for electronic verification.

4. If you cannot verify electronically, print out two copies of the ITR-V Form.

5. Sign and send one copy to Post Bag No. 1, Electronic City Office, Bengaluru–560500 (Karnataka) for verification.

6. Retain another copy for your ITR record.

Filing ITR Form 5 Offline 

1. Submit the bar-coded return.

2. Submit a physical paper form against an acknowledgment issued by the Income Tax Department.

ITR-5 Form Filing Due Dates 

• FY 2020-21 (The assessment Year 2021-22)
• 31st December 2021 (Non-Audit Cases)
• 15th February 2022 (Audit Cases)

Instructions for Filing ITR-5 Form

1. Stock up on all the mandatory and applicable fields.

2. Strike out whichever fields don’t apply to you/ write “NA”.

3. Write “Nil” to denote zero value.

4. Include “- “(minus sign) before figures to point to negative values.

5. Round off all figures to the closest rupee.

6. Likewise, round off total income, profit, loss values, and payable tax amount to the closest multiple of ten rupees.

7. make sure to not enter incorrect data to avoid prosecution under Section 277 of the ITA.

After the electronic data transmission, you’ll verify the returns through:

• A digital signature
• Authenticating the submission through an electronic verification code (EVC) or Aadhaar OTP
• Printing out a tough copy of the return verification form ITR-V and sending the duly signed document to the Centralized Processing Centre (CPC) in Bangalore by post

The ITR 5 must reach the CPC within 120 days from the date of e-filing.

However, if your returns must be audited under Section 44AB, you need to verify ITR-5 electronically with a digital signature.

 Who cannot file the ITR-5 form?

• Individual assesses 
• Hindu Undivided Family (HUF)
• CompanyTaxpayers who must file tax returns in Form ITR-7, under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E) or 139(4F).

You can easily file your ITR 5 online in a hassle-free manner. confirm that the return is filed before Doomsday to avoid any penalty.

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Equipment Finance Scheme For Existing Clients –  TIIC View Sample…

Read More

Documents Required For GST Registration View Sample Report Goods and Services…

Read More

Most Popular Loan Schemes  In India In 2024 View Sample Report The following…

Read More

Citibank Business Loans View Sample Report Citibank Business Loan provides business…

Read More

Chief Minister Startup Scheme  (CMSS) Sikkim View Sample Report On August…

Read More

Load More

Company and LLP Tax Return Filing

View Sample Report

What is an LLP?

A financial obligation partnership (LLP) may be a corporate body that was created and incorporated under the 2008 financial obligation Partnership Act. it’s a legally distinct organization from its partners who are related to it. An LLP shall be responsible for the total extent of its assets but the partners’ liability is restricted to their accepted investment within the LLP. because the partners’ responsibility is restricted to their negotiated participation within the LLP, it incorporates aspects of both a company structure and therefore the structure of a partnership company. And within the case of any fraudulent act, then a partner has no personal liability for it.

When are the annual compliance requirements for an LLP Tax Return Filing ?

The reports are going to be submitted annually to an indebtedness Partnership (LLP) to confirm enforcement and avoid severe penalties for non-compliance under the legislation. An indebtedness company only features a few compliances to be met annually which is remarkably small compared to the enforcement standards imposed on private limited firms. The fines tend to be relatively large, though. Although failure to comply could only charge fines to a personal Ld. It might charge an LLP up to INR 5 lakh for INR 1 lakh.

Consequences of not LLP Tax Return Filing

• • The loss of the LLP may be allowed to be carried forward

• • There shall be interest under section 234A

• • Refunds of TDS (if any) shall be delayed

• • You can still file late returns with a late Fine under section 234F

• • The late fine is from Rs. 1000 to Rs. 1000 counting on taxable income and delay

• • Non-filing shall have an impression on the due diligence of the LLP

Checklist requirements of LLP Tax Return Filing annual return

Annual returns shall be submitted in specified Form-11. this type helps within the outline of LLP’s management relations, together with a variety of partners and their names. In addition, by the 30th of May each year, Form 11 must be filled. Form 11 requirements of LLP are:

• • Digital filing of Form 11

• • Valid DSC (Digital Signature Certificate) of the partners

• • Prepare a listing of the Designated Partners on the LLP Letterhead

• • Keep information handy like change in partners or registered office and then on.

Filing and audit requirements under the Tax Act

As discussed earlier, liability partnerships whose revenue exceeds INR 40 lakhs or whose contribution exceeds INR 25 Lakhs must have the account books audited by Chartered Accountants. The deadline for filing a legal document for an LLP that’s needed to audit its books is September 30th.

What are the ITR forms for the corporate and LLP?

• Except for firms requesting an exemption under Section 11, which applies completely or partly to income from property held in trust or other legal responsibility for religious or charitable reasons, all businesses are required to file ITR 6.
• When a client requests an exception under section 11 of the Internal Revenue Code, an ITR 7 must be filed. ITR 7 is not included in this scheme.
• If a corporation is referred to as an LLP, an ITR 5 must be submitted.

What are the steps involved in filing tax for an LLP Tax Return ?

Step 1: Statement of Accounts

Before initiating the tax procedure, you must prepare the statement of accounts for the LLP. The preparation of the statement of accounts is that they start drawing up the LLP’s financial statements. you must be alert and abide by the provisions of the 1961 taxation Act.

Step 2:The revenue enhancement calculations

The determination of taxable income is the most important stage in filing an ITR for an LLP. The accuracy of monetary statements is critical while working on tax computations for your LLP. The tax laws treat these charges differently because if they don’t meet the requirement, they’re effectively treated as an expense, resulting in an increase in taxable income.

Step 3: Expense disallowance under the ITR Act

The revenue enhancement department also acknowledges a specific payment because of the LLP’s cost if it follows the principles. Here’s an outline of common tax disallowances and therefore the reasons for LLP’s ITR.

• • The preliminary expenses are allowed only up to fifteen of capital employed within the LLP

• • All payouts are disallowed as expenses require TDS to not be deducted.

• • Penalty on delayed tax payments like TDS, GST, etc isn’t allowed

• • Partners’ salary is restricted to 90% of the profit, up to Rs. 3 Lakh or 60% at that time.

• • Please check the LLP agreement for the availability of partner remuneration.

Step 4: revenue enhancement Payment of LLP

The LLP tax self-assessment is charged electronically via the tax Portal. Choose Challan Number – 280 on the tax payment page, and follow the instructions on the pc. revenue enhancement is charged by nearly all banks through internet banking. The taxation for the LLP may be charged through a number of the banks’ debit cards as described within the tax portal. By visiting your branch, you’ll also pay tax and send a check along with Tax Challan 280.

Step 5: Creating the profile

Create a profile for filing tax returns of the LLP on the taxation Portal. thanks to the electronic filing of the LLP tax Return, the LLP is anticipated to file for the primary time on the revenue enhancement export portal. To register the LLP, you’ll need an OTP from your phone and an OTP from your email. One designated partner must be listed as a licensed signatory on the revenue enhancement portal. The designated partner’s digital signature is additionally registered on the ITR website for verification purposes when the ITR is filed.

Step 6: Filing taxation

The LLP’s taxation return may be filed only after the self-assessment tax has been paid. The LLP ITR is often submitted with the utilization of any approved partner’s digital signature. The LLP ITR, however, can even be checked via the partner’s Aadhaar-based OTP which is registered on the tax portal.

Date by which the LLP taxes return must be filed

• • Since April 1st, the LLP has been filing ITRs.

• • The deadline is July 31st.

• • The deadline for tax audits is September 30th.

• • ITR-5 is the correct form to use.

• • Until the end of the assessment year, you can file a late ITR.

Documents required for the LLP statement of accounts to be finalized.

• • TDS on LLP payments TDS on preliminary expenses

• • Consider the GST regulations for LLPs (if applicable)

• • Compensation for partners (Special Treatment)

• • Consider tax planning best practices.

Finaxis: What’s the Big Deal?

With years of experience, Finaxis is India’s leading professional platform for lawyers, chartered accountants, and company secretaries. We handle legal work for over 1000 firms and LLPs on a regular basis, leveraging our technical skills as well as the knowledge of our legal team.

9.1 Customer Satisfaction

By managing all of the paperwork, we make dealing with the government as painless as possible. In order to satisfy your realistic expectations, we’ll also give you complete openness throughout the procedure.

Team with 60+ members

You’re only a phone call away from the most basic legal services, thanks to a staff of over 300 skilled business consultants and legal professionals.

Access To Experts

We connect you with reputable professionals and work with them to ensure that you meet all of your legal obligations. On our web platform, you’ll be able to keep track of the progress in the tiniest of details.

Realistic Expectations

We enable a smooth interaction process with the government by managing all of the documentation. We provide clarity on the incorporation process in line with realistic expectations.

You can also click here to get your Tax Return Filling Today 

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Equipment Finance Scheme For Existing Clients –  TIIC View Sample…

Read More

Documents Required For GST Registration View Sample Report Goods and Services…

Read More

Most Popular Loan Schemes  In India In 2024 View Sample Report The following…

Read More

Citibank Business Loans View Sample Report Citibank Business Loan provides business…

Read More

Chief Minister Startup Scheme  (CMSS) Sikkim View Sample Report On August…

Read More

Cibil score for BankLoan View Sample Report TransUnion CIBIL, one…

Read More

Load More

Income Tax Notice Under Section 143(1) 

View Sample Report

Income Tax Notice under section 143(1): Every financial year, everybody with taxable income is required to file an income tax return. The income tax department would process the tax return when it was filed and check for any irregularities.

A summary assessment under Section 143(1) can be done without calling the assessee if the faults in an income tax notice are minimal. As a result, the most common type of tax notice received from the IRS is an income tax notice under Section 143(1). When a taxpayer receives an income tax notice, he or she can take effort to understand the notice and comply with the tax officer’s requests without becoming panicked. In this piece, we’ll take a closer look at the income tax notification issued under Section 143(1).

When Section 143(1) Income Tax Notice is Issued?

Without summoning the taxpayer, a tax notice under Section 143(1) of the Income Tax Act can be issued to start a summary assessment. Notices under Section 143(1) are based on the electronic processing of tax returns with no human interaction. The Income Tax Department would not request more information or documents in a summary assessment, as it would in a scrutiny assessment.

Summary Assessment under Section 143(1)

After automated verification of the tax return filed, an income tax notification under Section 143(1) will be issued in any of the following scenarios:

1. Any errors in the return’s arithmetic;
2. If a claim appears to be inaccurate in the tax return filed, it is an incorrect claim.
3. If the return for the prior year for which the set-off of loss is claimed was filed after the due date for submitting an income tax return, the loss claimed would be disallowed.
4. Disallowance of expenditures identified in the audit report but not included in the computation of total income in the return (starting with AY2017-18);
5. If the return is filed beyond the due date provided in Section 139, the deduction claimed under Sections 10AA, 80-IA, 80-IAB, 80-IC, 80-ID, or 80-IE would be disallowed (1). 
6. Addition of revenue from Form 26AS, Form 16A, or Form 16 that hasn’t been factored into the total income in the return;
7. Information with contradicts another entry in the same or a different return;
8. Donation information, for example, is necessary to validate an entry that has not been provided.
9. If any deduction is more than the statutory limit;

Responding to Income Tax Notice

After applying the changes listed below and crediting the taxes and interest paid, the assessee must pay additional tax. The taxpayer will be requested to pay the sum owed within 30 days in this situation. After applying the modifications listed below and crediting the taxes and interest paid, the tax is refundable to the taxpayer. There is an increase or decrease in the assessee’s claimed loss, and the assessee owes no tax or interest, and no interest is refunded to the assessee.

Time Limit To income tax notice

Within one year of the end of the financial year in which the return of income is lodged, an assessment under section 143(1) can be made. As a result, the notice of tax or interest owed under Section 143(1) shall not be delivered after one year has passed since the end of the financial year in which the return was filed.

Process for Responding to Income Tax Notice under Section 143(1)

The assessee shall receive a tax notice u/s 143(1) detailing the amount determined to be payable by, or the amount of refund owing to the taxpayer. The acknowledgment of the return of income shall be considered the intimation if there is no sum payable or refundable. The taxpayer should be aware that simply receiving a notice from the income tax department does not imply that the taxpayer must appear in person before the authorities. In many circumstances,

it will suffice if the individual who receives the notice responds to it either physically or electronically. If a taxpayer receives a notification under Section 143(1), he or she should be aware that the deadline for revising the return is 15 days from the date of the notice. If the taxpayer does not respond to the income tax notice within the timeframe specified in Section 143(1), the income tax return will be completed after the necessary modifications specified in the income tax notice are made.

Follow the steps below to respond to an income tax notification issued under Section 143(1):

Step 1: Go to the IRS E-Filing website and log in to your account.

Step 2: Select E-Assessment/Proceedings from the E-Proceedings menu.

Step 3: Under Section 143(1), select Prima Facie Adjustment (a).

Step 4: The information on the notice you received will be shown. To begin the process of 

sending the response, click Submit.

Step 5: You will now see a list of all identified mismatches. To respond to the mismatch, click the drop-down next to the Response.

Step 6: If you have any further facts or explanations, add them to the rationale or remarks section.

Step 7: Before submitting your response, attach any supporting papers that pertain to the amount of the disparity.

Step 8: Press the “Submit” button. An acknowledgment will be sent once the response has been submitted.

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Load More

How Can You Claim Relief Under Double Taxation

View Sample Report

Double Taxation Relief

The phenomenon of taxing the same revenue twice is referred to as double taxation. Double taxation of the same income happens when the same income is recognized as accruing, generating, or being received in more than one country.

Avoiding Double Taxation

To ease income double taxes, provisions for double taxation relief have been implemented.  The relief from double taxation is available in two forms: unilateral relief and bilateral relief. The Government of India has signed the Double Taxation Avoidance Agreement (DTAA), a bilateral pact with over 150 nations that provides relief from double taxation to Indian citizens and residents.

Power To Choose

In a scenario where a Bilateral Agreement has been entered into with a foreign country according to Section 90, the taxpayer has the option of being taxed under the Double Taxation Avoidance Agreement or under the normal provisions of the Income Tax Act 1961, whichever is more advantageous to the concerned taxpayer.

What Exactly Is DTAA?

A Double Taxation Avoidance Agreement (DTAA) is a tax treaty signed by India and another country. By applying the provisions of this treaty, an individual can avoid getting taxed twice. DTAAs can be either comprehensive agreements that cover all sorts of income or particular treaties that solely target specific types of income.

Income Categories Covered By The Double Taxation Agreement

• Services originating and provided within India
• Salary from India
• Income from property within India
• Capital gains from India
• FD and Savings Account in India

So, How Does Working Abroad Influence Indians’ Ability To Pay Their Taxes?

• If you have just relocated to another country or are considering doing so, one of the most significant considerations is how to pay your taxes. Domestic policies vary widely between nations, thus staying on top of your taxation rules is something that every expatriate and NRI must do. 
• However, when you relocate abroad in the middle of the financial year, things become a little more tricky. This is due to the possibility of being taxed in both India and the country to which you have migrated. So, have a look, how to get out of tax issues and claim relief whenever possible.

How Does The Income Tax Act Provide Relief Under Double Taxation?

Relief from double taxation might be either unilateral or bilateral.

1) Unilateral Relief :

The Income Tax Act of 1961, Section 91, provides for unilateral relief from double taxation. According to the terms of this clause, an individual may be exempt from being taxed twice by the government, regardless of whether India and the foreign country in question have a DTAA. However, certain circumstances must be met in order for an individual to be eligible for unilateral relief.

These Are The Conditions :

• In the previous year, the individual or business must have been a resident of India.
• The income must have accrued to the taxpayer and been received by them outside of India in the previous financial year.
• The income should have been taxed in both India and the country with which no DTAA exists.
• In that foreign country, the individual or corporation should have paid taxes.

2) Bilateral Relief : 

Section 90 of the Income Tax Act of 1961 provides for bilateral benefit. It provides double taxation protection through a DTAA. This form of alleviation is provided in two ways.

Exemption Method : 

The exemption method protects you completely from being taxed twice. That is, if income earned outside of India has been taxed in the appropriate foreign country, it is not taxable in India.

Tax Credit Method : 

Under this approach, an individual or a corporation can claim a tax credit (deduction) for taxes paid outside of India. This tax credit can be used to offset the tax owed in India, lowering the taxpayer’s overall tax.

Are You Claiming Tax Incentives Under The DTAA? What You Should Know

To be eligible for this benefit, one must first determine whether the country in which they live or earn a living has a DTAA with India. Form 10F, a tax residence certificate, and a self-declaration in the required format must be filed with the organization responsible for deducting tax at source.

Form 10F :

This can be obtained through the bank or downloaded from the website www.incometaxindia.com.

Details such as the applicant’s nationality, tax identification number, residence, and term of residency must be filled out and the form signed.

Verification:

Form 10F must be confirmed by the government of the nation in which the taxpayer resides for the applicable time period.

Self-Declaration:

It is a declaration that the taxpayer resides in a foreign country that has a DTAA with India, and hence the tax rate applicable to the income is the rate specified in the DTAA.

Tax Residency Certificate:

A tax residency certificate must be obtained from the country in which the individual resided during the financial year. On submission of the appropriate documents and payment of the prescribed fees, a tax residence certificate is provided.

Note : 

• The taxpayer’s PAN must be submitted in Form 10F and the self-declaration form.
• In India, residents are required to pay tax on their worldwide income. As a result, in addition to reporting pay income earned in India, he must also record income earned abroad on submitting ITR. According to the DTAA with the particular country, double taxation relief may be available in the form of a credit or an exemption.
• The provisions of the I-T Act will apply to the extent that they are more advantageous to him. If there is no DTAA, he may claim credit for taxes paid overseas under Section 91 of the Income Tax Act.

Country & Its TDS Rate

1. USA, UK, Canada, Australia –15%
2. Germany, South Africa, New Zealand –10%
3. Singapore – 15%
4. Mauritius – 7.5% – 10%
5. Malaysia, Qatar, Oman, Sri Lanka – 10%
6. UAE – 12.5%
7. Thailand – 25%
8. Russia, Kenya – 10%

Individuals receiving income from other countries can thereby reduce their tax liabilities and avoid the burden of double taxation by utilizing the provisions of DTAAs and the relief measures provided under the Income Tax Act. Contact us at https://www.finaxis.in/services/ for additional legal guidance.

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Equipment Finance Scheme For Existing Clients –  TIIC View Sample…

Read More

Documents Required For GST Registration View Sample Report Goods and Services…

Read More

Most Popular Loan Schemes  In India In 2024 View Sample Report The following…

Read More

Citibank Business Loans View Sample Report Citibank Business Loan provides business…

Read More

Chief Minister Startup Scheme  (CMSS) Sikkim View Sample Report On August…

Read More

Load More

Central FSSAI License – Eligibility And Documents Required

View Sample Report

FSSAI has the potential to be a leading agency that promotes public health by enforcing necessary food safety regulations. Its ultimate goal is to develop various recommendations and standards to encourage food safety awareness in India. In addition, this organization keeps a close eye on all parties involved in the food supply chain, from manufacturing to distribution. Consumer awareness is something that the FSSAI is highly concerned about. As a result, it frequently launches new campaigns to educate the public about poor and low-quality goods. In accordance with the Food Safety and Standard Act of 2006, the FSSAI develops food safety standards and other guidelines.

Who requires Of an Central FSSAI License and what does it entail? 

Central FSSAI License is legal permission provided by FSSAI to food establishments that have:

• A turnover of more than Rs 20 crores each annum, 
• Or Various units in various states of operation or;
• Production that exceeds the statutory threshold level on a monthly or annual basis,

Apart From These Essential Requirements, The Central FSSAI License Also Includes:

• Dairy plants that produce 50000 liters of milk solid each year, or 2500 megatons 
• Vegetable oil processing facilities with a daily production volume of 2 MT 
• Slaughterhouse with the following daily capacity:

1. 50 large animals
2. 150 little animals
3. A flock of 1000 chickens

• Meat processing plant with a daily capacity of 50 kg (150 megatons)
• A food processing plant with a daily production capacity of 2 megatons 
• Food companies export food products to other countries
• A refrigerator or cold storage facility with a storage capacity of 1000 megatons or more is available.
• Food wholesalers have a yearly turnover of more than Rs 30 crore.
• Food retailers and distributors with an annual turnover of more than Rs 20 crores 
• Catering service or food marketing firm with a yearly turnover of more than Rs 20 crores
• Catering services for government entities are available.
• Food catering services are available in government-run enterprises such as seaports and airports.

Benefits Of Central FSSAI License

• Improves Business Credibility Over Time 
• Allows companies to develop a broad consumer base. 
• Provides a competitive edge by rendering unregistered entities inoperable.
• Possibilities for business expansion and growth are created.

Obtaining A Central FSSAI License Necessitates The Submission Of The Following Documents: 

The following is a list of essential documents that must be submitted when filing an application for a central FSSAI license.

• Form B. (duly filled and signed by the applicant) 
• Floor map of a manufacturing or processing facility, highlighting major areas and providing precise measurements.
• If the applicant is looking to register a business, they must provide a complete list of key management personnel, including their names and proof of residency.
• It is necessary to have a copy of the MOA, AOA, and COI ( if the license seeker is a private limited company, OPC, and Public limited company)
• A comprehensive list of partners, including their names, contact information, and address, as well as a copy of the partnership agreement (In case the license seeker is a partnership firm).
• Members of a cooperative society who are currently serving on the board of directors (In case the license seeker is a cooperative society).
• A copy of the trust deed, as well as the trustees’ list ( if case the license seeker is a registered trust).
• Food Safety Management Plan (FSMS) or similar protocol is in place.
• Utility bills (electricity bill, rent agreement, register) of the business location for address evidence List of active raw material suppliers.
• Name and list of machinery at the plant.
• The competent local authorities have issued a certificate of no objection.
• The Ministry of Tourism has issued a tourism certificate (if the license seeker is a hotel owner).
• The DGFT (Directorate General of Foreign Trade) has issued an IEC certificate (if the license seeker intended to ship food articles abroad).

Step-by-Step Procedure for Obtaining a Central FSSAI License.

•  Step 1: Complete Form B and submit it to the FSSAI.

The license seeker must first submit Form B to the licensing authorities. The candidate must keep basic turnover requirements in mind while doing so.

•  Step 2: FSSAI officers examine the applicants.

The application, along with the relevant papers, will be forwarded to the appropriate personnel for review.

•  Step 3: A FSSAI official inspects the company location on-site.

The FSSAI will send designated officials to the firm to determine the level of compliance that the FSSAI recommends.

• Step 4: The application is approved, and the application is granted.

The certificate would be sent to the license applicant a few days after the licensing body approved the application. After receiving the certification, the business owner can go full throttle with their operations. Any non-compliance in this area could result in the application being canceled.

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Equipment Finance Scheme For Existing Clients –  TIIC View Sample…

Read More

Load More

What Are The Different Ways To Raise Funds  For His Company

View Sample Report

Introduction

Keeping all of your assets in one place is never a good business strategy. This is especially true when it comes to funding your new company. When it comes to raising capital for a company, it’s a challenging undertaking, so owners should keep all of their options open when looking for funding and not be too focused on one source.

Distinct types of enterprises have different requirements. Furthermore, some startups may be small and hence require little funding or resources, but others may have operations that necessitate additional funding. As a result, a variety of factors influence the owner’s decision to choose a suitable source of funding.

Whether we choose a bank loan, a venture capitalist, or a government grant, each of these sources of funding has its own set of advantages and disadvantages.

8 Funding Options For Businesses Include:

Startup entrepreneurs can obtain capital for their businesses from a variety of sources. These are commonly referred to as startup finance sources.

1. Personal Sources

Utilizing personal capital to invest in one’s business is referred to as using personal sources of finance. It’s divided into three categories:

Bootstrapping:

This is a method for a startup to self-fund. The proprietor invests his or her savings in the firm, either with his or her own money or with any credit cards he or she may have.   

The owner saves time and effort by not having to seek out other investors with this kind of finance. Another benefit is that the business owner does not have to relinquish any control. Self-funding demonstrates a person’s devotion to and belief in their own business.

Family and friends:

Borrowing from our friends and family is another way to tap into our resources. This could lead to more flexible lending terms than a loan, as well as being quicker and less expensive for the owner.

2. Initial Public Offering

When an owner is willing to give up a portion of his or her ownership in return for funding, equity financing is used. This sort of financing could include borrowing from family and friends, as well as an initial public offering (IPO). The biggest downside of this type of financing is that the owner must surrender a portion of his business.

3. Angel Investors

• Angel investors are often wealthy individuals or non-profit executives who make direct investments in small businesses. They are often pioneers in their fields, giving not just their expertise but also specialized or executive information.
• Angel investors typically invest in business start-ups in the range of $ 25,000 to $100,000. Larger enterprises, on the order of $ 1,000,000, are attracting the attention of institutional financial speculators.
• They are typically driven by a company’s significant development potential as well as its capacity to provide mentorship and resources. They also feel obligated to give back to the entrepreneurial community, which is why they are willing to take such measured risks.
• The most significant benefit of having an angel investor is access to valuable resources and contacts. The company entrepreneur and his or her staff can benefit greatly from the mentorship and information available.

4. Venture Capitalists (VCs)

• Angel investors and venture capitalists are extremely similar, however, venture capitalist businesses are made up of a structured team of people, whereas angel investors are only one person.
• Venture capital organizations usually seek out startups with the potential to make significant profits. These firms, on the other hand, carry a significant level of risk, which is why venture capitalists demand a high level of control in exchange for their investment.
• As the company’s profits rise, so do its holdings in it. When traditional finance alternatives run out, many entrepreneurs turn to venture capitalists for help.

5. Entrepreneurial Incubator

• A business incubator helps a startup at every step of its development. Incubators don’t often provide direct finance to startups, but they do provide a lot of operational and logistical support.
• This assistance comes in the form of shared office space, mentorship from local professionals, and even the sharing of some technical and administrative resources.
• When business owner does not have the money to have their workspace, they can turn to this source of funding for help. Someone might, for example, use an incubator’s coworking space to test their product before selling it on the market, and then leave the incubator afterward.
• These are usually managed by government agencies, universities, professional organizations, businesses, and so on, and they can be quite beneficial to small business owners because they give relevant resources that can significantly reduce costs. Expert advice can also be extremely valuable.

6. Government Subsidies & Funding

• Governments are constantly seeking ways to support new ideas and entrepreneurs by offering subsidies, grants, and loans. This financing is provided by both the federal government and the state governments. Consumers are often unaware of such initiatives, but they can be an effective way for businesses to raise funds.
• Many government entities also have awards and donations available to small business entrepreneurs. Because the competition for such awards and gifts is so high, it might be tough to achieve; nonetheless, it can be extremely advantageous.
• In India, the government is putting a lot of effort into the ‘Startup India’ and ‘Make in India’ campaigns. As a result, there are numerous schemes accessible to business owners.
• The MUDRA lending initiative, which provides collateral-free loans to micro/small businesses, was also launched by the Indian government. Aside from that, many incentives and grants are available to enterprises in technology fields that establish industries in rural areas.

7. Cash Advances From Banks

• For small and medium-sized businesses, bank advances are the most common source of capital. They provide loans to entrepreneurs. Owners must demonstrate the viability of their business idea and produce historical records to the banks to obtain the loan amount (if any).
• Bank loans offer the advantage of not requiring the surrender of any equity; nonetheless, bank rules are rigid, and interest payments must be made on a regular and timely basis. In some circumstances, interest rates may be extremely high.

8. Crowdfunding 

• Crowdfunding is a new way for entrepreneurs to raise money. By pitching and discussing one’s company idea to a vast number of people, tiny amounts of money are raised from a huge number of people.
• This source has grown in popularity in recent years because it primarily takes place on digital platforms on the internet. The teams are usually brought together by a third party. A website, for example, can be used to raise cash for a project or business concept.

The Following Are Essential Elements To Keep In Mind While Creating A Business Plan For A Fundraising Pitch:

A proper strategy, i.e. a plan, should be produced that demonstrates how much profit you predict in how long time and how much profit you expect, and other similar things that will show how committed and focused you are.

• Be clear about your idea
• Find interesting ways to present your idea
• Keep it simple 
• Know who your investors are
• Profit expected
• Finance required                   
• A proper plan
• Effect on the market
• Team members and their previous experience
• Why should they choose you?

Conclusion

In the present scenario, there is a range of business finance options to consider. Financing a business has come a long way. People used to rely on their funds or family members for finance, but there are now numerous alternatives to these traditional ways of financing.

One must make a decision based on their business’s needs, as well as the scalability and practicality of all elements. As a result, selecting the best business funding sources becomes critical. You should give careful consideration so that the best source is chosen and the business is assisted.

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Equipment Finance Scheme For Existing Clients –  TIIC View Sample…

Read More

Documents Required For GST Registration View Sample Report Goods and Services…

Read More

Most Popular Loan Schemes  In India In 2024 View Sample Report The following…

Read More

Load More

Income tax Return Filing For Trust  In India 

View Sample Report

Introduction

Charitable Trusts/Societies/Foundations are all classified as NGOs or Non-Governmental Organizations that strive for the social and economic well-being of society. A trust is a legal entity founded to assist in the establishment and propagation of charitable or religious goals. They do not normally engage in commercial operations and, as a result, are entitled to several tax breaks under the Income-Tax Act. This time, let’s take a look at how Trusts should file their IT returns and what benefits they might get. Section 80G provides benefits to non-profit organizations.

ITR Form

• Forms ITR-5 and ITR-7 A Trust’s taxes can be filed using ITR5 or ITR7. If the Trust earns more than 2.5 lakhs per year, it must pay taxes under the Income Tax Act. Trusts may use ITR5 in such instances.
• However, if the Trust is required to file tax reports because it falls into one of the groups indicated in Sections 139 (4A, 4B, 4C, 4D, 4E, and 4F),
  • Return made by a charitable trust (section 139 (4A)
  • Return based on a political party (section 139 (4B)
  • The agency’s return (section 139 (4C)
  • University and college returns (section 139 (4D)
  • Return through a business trust (section 139 (4E)
  • Return on investment (section 139 (4F)

The Returns May Then Be Filed Using An ITR7 Form

All Trusts must file e-returns, and if the Trust’s records must be verified by a registered CA, both the tax return statement and the Trustee’s Digital Signature must be filed electronically.

Procedure

Step 1: 

Complete the quick questionnaire provided by our team.

Step 2: 

Please provide us with all of the above-mentioned documentation.

Step 3:

We will compile financial statements based on the papers you provide us with, file your income tax return on time, and safeguard you from any penalties.

Step 4:

We will notify you further when you have filed your Income Tax Return and will also supply you with the return form and computation.

Eligibility

The following are the terms:

• The trust should be registered with the Commissioner of Income Tax as a Charitable Trust, which is exempt under the Act.
• A trust deed or another equivalent legal requirement should bind the trust’s holdings.
• The trust’s income should not be utilized to benefit someone who is directly or indirectly affiliated with a charity organization.
• Only charity or religious causes should be allowed to use the property.

Exemptions

• An exemption will only be granted for the portion of income used for charity or religious purposes.
• Revenue from property held in trust or from an institution solely for charitable/religious purposes is exempt if 85 percent of the income is spent on the trust’s objects during the year.

Tax Rate Applicable

Taxable Income	Tax Rate
Up till Rs. 2,50,000	Nil
Rs. 2,50,000 – Rs. 5,00,000	5%
Rs. 5,00,000 – Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

IT Surcharge For Trust Entity

• 10% Tax, When net income surpasses Rs. 50 lakhs
• 15% of Tax when net income exceeds 1crore
• 25% of Tax when net income exceeds 2crore
• 37% of Tax when net income exceeds 5crore
• Health and Education:- 4% of Income Tax + Surcharge 

Due Dates For Filing Income Tax Return

• September 30 – When a Trust is required by the Income Tax Act or any other statute to have its accounts audited.
• November 30 – Where a Trust is required to file Form 3CEB that will be required if the trust has entered into certain types of related party transactions.
• July 31 – The date on which Trust’s accounts do not need to be audited.

Failure To File A Tax Return Might Result In A Penalty

If the trustor charitable institute fails to furnish the return of income or fails to furnish it before the due date, the charity trustees shall be liable to pay a penalty of Rs. 100 for each day that the failure continues under section 272A(2).

Trusts That Were Expecting To File Their ITR

Any Trust that generates more than Rs.2.5 lakhs per year is required by law to file annual returns. The Trusts listed below are required to submit Income Tax Returns regardless of their income.

• Research Associations
• News Companies
• Association or Institution
• Securitization Trust
• Investor Protection Fund
• Core Settlement Guarantee Fund
• Institutions
• Funds
• Universities and Educational Establishments
• Investor Protection through Mutual Funds and Investor Funds
• Venture Capital Funds and Debt Funds
• Trade Unions
• Body/Board/Trust/Commission
• Business Trusts

Finaxis will offer you all of the necessary services and legal advice on the filing of Income Tax Returns, as well as guidance for other compliances. To file your income tax return, please contact us at https://www.finaxis.in/services/.

 

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Equipment Finance Scheme For Existing Clients –  TIIC View Sample…

Read More

Documents Required For GST Registration View Sample Report Goods and Services…

Read More

Load More

All About Income Tax Return Form 2

View Sample Report

Introduction 

The income tax is a tax levied and collected by the government on a person’s earnings. The Income-tax Act of 1961 governs the provisions of income tax.

An income–tax return (ITR) is a declaration of income and tax owed by a taxpayer to the Internal Revenue Service in a prescribed format. The Income-tax Department approves several forms of income returns for different taxpayers with various incomes from various sources throughout the year.

ITR-2A Form

• ITR-2A is a newly added income tax return form for individuals and HUFs (Hindu Undivided Family).
• You will be required to fill out the ITR 2A Form to register for your income tax returns if you are a salaried employee or a member of a Hindu United Family with control of more than one private property and do not have any capital gains profits.
• When it comes to filing taxes, income tax forms are reports that must be filled out and given.

Those Who Are Unable To Register On ITR-2A

Those who have the following items cannot complete the ITR-2A income tax return:

• Gains on capital investments
• Income from a job or a business
• Any relief or reduction granted under sections 90, 90A, or 91
• Any citizen with an asset (including a financial stake in a company) located outside of India, or any contracting authority in a statement located outside of India.
• Any citizen who earns money from sources other than India.

The Advantages Of ITR Filing

Filing an ITR not only makes you tax-compliant but also provides you with the following advantages:

ITR-2A Form Structure

ITR-2A is separated into two sections, each with its schedule:

• Part-A: Identifiable data and additional data that are common.
• Part-B-TI: The total income is calculated.
• Part B-TTI: Calculation of total income tax liability
• Declaration of payment of tax on self-assessment and advance tax, TDS on payrolls, and TDS on non-salary wages are all included in tax returns.
• Calculation of income below the head payrolls or salaries (Schedule-S).
• Calculation of income under the heading Income from House Property on Schedule-HP.
• Schedule-OS: Estimation of revenue from other sources to support the head Income.
• Schedule-CYLA: Interest after set-off for losses in the current year
• Schedule-BFLA: Income report after unabsorbed loss carried forward from prior years is deducted.
• CFL Schedule: Loss declarations will be pushed forward to future years.
• Schedule-VIA: Below is Chapter VIA, a description of the results (based on total profit).
• Schedule 80G: Confirmation of donations eligible for a Section 80G deduction.
• Schedule SPI: Description of income beginning with the assessee’s spouse/secondary child/wife son’s or any other individual organization of persons involved in the assessee’s interest in Schedules-HP, OS, and CG.
• Schedule-SI: A list of assets that are subject to specific tax rates.
• Schedule-EI: Income not in included in the total revenue report
• Schedule-5A: According to the Portuguese Civil Code, a declaration of allocation of assets between spouses is required.

How To File Form ITR 2?

Both online and offline registration is available for ITR-2A. E-filing income tax returns are required when:

• You have a total income of more than Rs.5 lakhs.
• You’re requesting a refund.
• You are requesting DTAA relief because you have international assets and assets (including a commercial interest in a company).

Necessary Documents Required For ITR -2A 

• 16th Form: It’s a TDS certificate that your firm gives you to show you the details of the payroll you’ve been paid and any TDS you’ve been charged.
• The post office and the bank both issued interest certificates.
• Form-16B/Form-16A/Form-16C
• Form 26AS: It’s your annual tax return as a whole. It’s similar to your tax passbook, which keeps track of all the taxes levied on your PAN. It consists of the following:-

1. TDS deducted by banks 
2. You transfer advance taxes throughout the fiscal year.
3. Your company’s TDS deduction.
4. Taxes are paid by you through self-assessment.
5. Any other companies deduct TDS from payments made to you.

• Advance Proofs That Save You Money On Taxes:-

1. Documentation to support claims for deductions under sections 80D to 80U.
2. Bank or NBFC home loan report. 
3. Validation of a bank statement in advance of an ECS payment.
4. Gains in capital
5. The Aadhaar card is a government of India-issued unique identifying number.
6. Obtain information on a confidential stock investment.
7. Obtain bank account information.
8. Passbooks for the post office and bank savings accounts, as well as PPF accounts, should be updated.
9. Receipt of pay

ITR-2A Form Frequently Asked Questions

Is it possible to submit the ITR 2 form online?

Every taxpayer who is eligible to file ITR Form 2 can do so electronically through the IRS’s e-filing system. The digital signature can be used to register an ITR electronically. However, using digital signatures alone to file ITR Form 2 online is not required.

Explain The ITR-2 Download Procedure:

• The first step in the ITR-2 download process is to go to the government’s Income Tax Department website: Income Tax Department website. Register as a user to begin the ITR-2 download procedure. After you’ve completed the signup process.
• Go to the Income Tax Department’s website and log in to your account.
• Under the Download menu, select the “Offline Utilities” option.
• Then click on the “Income Tax Return Preparation Utilities” button that opens.
• For the Income Tax Return Preparation Utilities, select “Assessment Year.”
• The ITR-2 Form can then be downloaded in excel format by selecting the tab “Excel Utility.”
• The ITR-2 form will be downloaded in ZIP format to your PC or laptop. Fill in all of the blanks in the file.

Is it necessary to include a balance sheet in ITR 2?

Separately, individuals and HUFs that start a business or provide a service are required to file portions of their assets and debts on a balance sheet. Taxpayers categorizing ITR-2, which includes taxpayers with income beyond Rs. 50 lakh, are said to have registered for the plan AL.

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Read More

Special Advance Authorization for Garments View Sample Report Directorate General…

Read More

Unutilized Input Tax Credit Refund Under GST View Sample Report An…

Read More

What is MSME Loan? View Sample Report Entrepreneurs and business owners…

Read More

ICICI Bank Business Loan View Sample Report ICICI Bank business loan…

Read More

PNB Bank Business Loan View Sample Report (Punjab National Bank) PNB Bank Business…

Read More

HDFC Bank Business Loan View Sample Report HDFC Bank Business Loan…

Read More

Equipment Finance Scheme For Existing Clients –  TIIC View Sample…

Read More

Documents Required For GST Registration View Sample Report Goods and Services…

Read More

Load More