Download ITR-4 Excel Utility for File Annual Income Tax Return for Asstt. Year 2014-15.

Now a Eleventh hour time to file Annual Income Tax Return for Asstt. Year 2014-15.  Regarding this many website has published Excel Base and other Utility which are provides you all facility.  Apart from this, Income Tax Department has developed Excel Base Utility for Taxpayers.  In this context the Income Tax Department has published ITR-4 Excel Utility for Asstt. Year 2014-15 including java based utility. Taxpayee can download one of them or both format to file Income Tax Return for the assessment year 2014-15.

ITR 4 :
This Return Form is to be used by an individual or a Hindu Undivided Family for the assessment year 2013-14 who is carrying out a proprietary business or profession.

Instruction to file ITR-4, How ?


Download ItR-4 Excel Utility (Click Here)

Know more about your Tax Return Form (Click Here)

Other Important ITR Forms in Excel & Java Utility Download

Changes made by Finance (No. 2) Bill, 2014 as passed by the Lok Sabha

Changes made by Finance (No. 2) Bill, 2014 as passed by the Lok Sabha
1. Unlisted securities and units of MF transferred between 1-4-2014 and 10-7-2014 shall be deemed to be long-term capital assets, if held for more than 12 months:
It is proposed that unlisted shares and units of a mutual fund (other than Equity oriented mutual fund) shall be categorized as long-term capital assets only if they are held for more than 36 months. The existing provision requires holding them for a period of more than 12 months so as to categorize them as long-term capital assets.
So, only a security listed on stock exchange as well as units of equity oriented fund held by an assessee for more than twelve months shall be considered as 'long-term capital assets'.
The Finance Bill, 2014 as passed by the Lok Sabha has inserted a new proviso in section 2(42A) to provide that the unlisted shares and units of a Mutual Fund shall continue to be deemed to be long-term capital assets if they have been transferred during the period from April 1, 2014 to July 10, 2014 after holding them for a period of more than 12 months (instead of more than 36 months). This proviso shall be inserted w.e.f. April 1, 2015.
2. LTCG on Mutual Fund Units transferred between 1-4-2014 and 10-7-2014 shall be taxable at 10% without indexation:
Long-term Capital Gains on mutual funds (other than equity oriented mutual funds) are proposed to be taxed at the rate of 20%. Accordingly, option to pay tax at the rate of 10% (without indexation) would not be available in case of long-term capital gain arising from sale of such units.
However, the Finance Bill, 2014 as passed by the Lok Sabha provides that the benefit of the proviso shall continue to be available for the long-term capital assets, being units of Mutual Funds, transferred between April 1, 2014 and July 10, 2014. Thus, the assessee shall have an option to pay tax at lower of following rates if units of Mutual Funds are transferred between the said periods:
a.   At 10% of capital gains as computed after reducing the cost of acquisition without indexation
b.   At 20% of capital gains as computed after reducing the indexed cost of acquisition
The Finance Bill, 2014 provided that the amendments to section 112 will take effect from Financial Year 2014-15. This raised doubts among investors regarding the retrospective effect of the provision to tax the units of Mutual Funds (other than equity oriented mutual funds) redeemed during period April 1, 2014 to July 10, 2014. Thus, a proviso has been inserted for the transitional period to allow benefits of concessional tax rates during the aforesaid period.
3. Determination of Arm's Length Price when more than one price is determined by most appropriate method:
Under the existing TP regulations, where more than one price is determined by most appropriate method, the arithmetic mean of all such prices is taken for determination of arm's length price with a tolerable range of +/- 3% or +/- 1%, as the case may be.
The application of this methodology has been one of the reasons for TP litigations among taxpayers and revenue. Thus, to address this issue, Finance Minister in his budget speech proposed use of range for determination of arm's length price, where adequate number of comparables are available in the benchmarking set. However, the Finance Bill as presented in the House on July 10, 2014 did not include any clause to address this issue.
Accordingly, the Finance Bill as approved by Lok Sabha has inserted a third proviso in section 92C to provide that where more than one price is determined by the most appropriate method, the arm's length price in relation to an international transaction or specified domestic transaction shall be computed in such manner as may be prescribed.With introduction of the new mechanism the provisions of first and second proviso (arithmetic mean and tolerable range) shall not apply. This proviso shall be inserted w.e.f. April 1, 2015.
4. Taxpayers can approach Settlement Commission even for pending re-assessment cases:
As per section 245C of the Act, an assessee may apply to Settlement Commission for settlement of cases at any stage of a case relating to him. The term 'case' as per section 245A(b) shall mean any proceeding for assessment which may be pending before an Assessing Officer on the date on which application is made before Settlement Commission.
Before June 1, 2007 an assessee was allowed to apply for settlement of cases even when the proceedings for re-assessment were pending before the Assessing Officer. Subsequently, Finance Act, 2007 restricted the scope of the provisions by providing that an assessee shall not be allowed to make the application before the Commission during the pendency of reassessment proceedings or during pendency of proceedings of making fresh assessment where original assessment was set aside.
Finance Act, 2007 inserted a proviso for the purpose of section 245A(b) to provide that proceedings for reassessment or fresh assessment where original assessment was set aside shall not be deemed to a proceeding pending before the Assessing Officer. Consequently, a taxpayer was not able to file an application for settlement of cases in cases where reassessment was pending before the Assessing Officer. Effectively, the scope of the term 'case' for which an application could be made was curtailed by the Finance Act, 2007.
The Finance Minister during his budget speech has proposed to enlarge the scope of the Income-tax Settlement Commission so that taxpayers could approach the Commission for settlement of disputes. Accordingly, the Finance Bill, 2014 as passed by Lok Sabha has deleted the proviso which restricted the scope of the term 'case' to the pending assessment cases only. Such amendment would reinstate the existing position wherein an assessee can apply for settlement of even those cases which are pending for re-assessment proceedings. The changes in the provisions shall take effect from October 1, 2014.
Similar changes have been made in Wealth-tax Act as well for settlement of cases.
5. Resident taxpayers can approach Authority for Advance Ruling:
As per the existing provisions of section 245N(a), the term 'Advance Ruling' shall mean:
(a)   A determination of any question of law or fact arising out of a transaction which has been undertaken or is proposed to be undertaken by a non-resident applicant;
(b)   A determination of any question of law or fact by the Authority in relation to tax liability of a non-resident arising out of a transaction which has been undertaken or is proposed to be undertaken by a resident applicant with such non-resident;
(c)   A determination or decision by the Authority in respect of an issue relating to computation of total income which is pending before any income-tax authority or the Appellate Tribunal and such determination or decision;
(d)   A determination or decision by the Authority, whether or not an arrangement, which is proposed to be undertaken by any person, being a resident or a non-resident, is an impermissible avoidance arrangement as referred to in Chapter X-A (GAAR) or not (applicable from 1-4-2015).
Currently, an advance ruling can be obtained for determining the tax liability of a non-resident. This facility is not available to resident taxpayers, except Public Sector Undertakings. Thus, the Finance Minister proposed, in his budget speech to extend the scope of advance ruling so as to enable resident taxpayers to obtain an advance ruling in respect of their income-tax liability above a defined threshold.
Accordingly, section 245N(a) is amended to provided that the term 'Advance Ruling' shall mean a determination by the authority in relation to the tax liability of a resident applicant arising out of a transaction undertaken or proposed to be undertaken by him. Further, the meaning of the applicant has been amended so that the Central Government may notify the class of resident persons for the purpose of obtaining the advance ruling.
6. Changes aiming at strengthening Authority for Advance Rulings ('AAR')
The Finance Minister, Sh. Arun Jaitley, in his budget speech had said that additional benches of AAR would be constituted for strengthening the AAR. Thus, following amendments have been made to the Finance Bill as approved by the Lok Sabha under section 245-O in order to strengthen the AAR:
a.   Increase the strength of members of AAR: The existing provision provides that the AAR would only consist of three members, namely, a Chairman, an officer of Indian Revenue Service and an officer of Indian Legal Service. The amendment provides for additional appointment of Vice-Chairmen as member of AAR. Further, Central Government has been empowered to appoint such number of Vice-Chairmen, revenue members and law members as it deems fit.
b.   Eligibility criteria for appointment of members of AAR:
(i)   Chairman: As per the existing provision a person who is a retired judge of the Supreme Court can be appointed as Chairman. The Finance Bill, 2014 as passed by the Lok Sabha provides that only a person who has been a judge of the Supreme Court would be eligible for appointment as Chairman.
(ii)   Vice-Chairman: It is provided in the Finance Bill, 2014 as passed by the Lok Sabha that a person, who has been a Judge of a High Court, can be appointed as a Vice-Chairman.
(iii)   Member of IRS: The existing provision provides that an officer of IRS who is qualified to be a member of CBDT is eligible for appointment as member of AAR. The new provision provides that a revenue member from IRS, who is a Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General of Income-tax is eligible for appointment as member of AAR.
(iv)   Member of Indian Legal Service: The existing provision provides that an officer of Indian legal service, who is or is qualified to be an additional Secretary to the Government of India, is eligible for appointment as member of AAR. The new provision provides that a law member from IRS, who is an Additional Secretary to the Government of India, is eligible for appointment as member of AAR.
(v)   Additional benches of AAR: The existing provision does not provide for constitution of benches of AAR at various locations. It merely provides that office of AAR shall be located in Delhi. The amended provisions provides as under:
  The office of AAR shall be located in Delhi and its benches shall be located at such places as Central Government may specify.
  Further, benches of AAR have been given authority to exercise power and functions of AAR and it has been further provided that such benches would consist of Chairman or the Vice-Chairman and one revenue member and one law member.

Source: www.taxmann.com

Download ITR-6 e-Filing JAVA Utility for Asstt. Year 2014-15.

The CBDT has released ITR-6 Java Base utility for Companies other than a company.  This utility required for online filing of Income Tax Return of companies other than a company claiming exemption u/s. 11 for Assessment year 2014-15 i.e. Financial Year 2013-14. The CBDT has Yesterday released only Java Utility it means CBDT shall  releases ITR-6 Excel Utility soon.

Who filed ITR-6 ?
  • For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes)
  • This return has to be filed electronically only.
Annexure-less Return Form – No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return. Tax-payers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS).

ITR-6 has to be compulsorily furnished electronically under digital signature to the Income Tax Department.

Download ITR-6 Java Base Utility (Click Here)

Download ITR-6 In PDF Format (English) (Click Here)

Download ITR-6 In PDF Format (Hindi) (Click Here)

How to File ITR-6 ? Instructions (English) (Click Here)

How to File ITR-6 ? Instructions (Hindi) (Click Here)

(Click Here) More ITRs for Free Download

No New Notice for Retrospective Tax, FM said.

NEW DELHI: Finance minister Arun Jaitley called the retrospective tax a 'retrograde idea' that sent a very negative signal to the world of investors and as a result investments dried up.

Replying to the budget debate in Rajya Sabha late on Thursday night he said the government will not create any fresh controversies on retrospective tax.

He said the government recognised the Parliament's sovereign right to legislate retrospectively, but said "as a policy our government won't use that power".

He also assured the house that assessing officer will not issue new notices that they could have issued after the retrospective amendment. These cases will be referred to a mechanism created under the Central Board of Direct Taxes (CBDT).

In respect of cases that are under dispute, finance minister said there were two options, either by legislation those cases are decided against the government or litigations are contested.

"We consulted various people and finally found that the second course was a more prudent course. Legislation is a methodology of solving dispute so is legal methodology a course of solving dispute. We have left it to that," Jaitley said.

He said there were some early signs that the growth was picking up, but these were only very early signs. Similarly, inflation was showing some early signs of easing and if it eased sufficiently the Reserve Bank of India could cut rates.

Finance minister also strongly took on the charge that the government was pro business.

If you say that I have helped the businesses and this budget is pro business, yes it is. I have no hesitation in saying it is pro business, Jaitley said.

"Does it help the middle class? Does it help the neo middle class? It does. Does it help the poor? It does," FM said adding that being pro business did not mean being anti poor.

You need to be pro industry, it is only then that you will have revenues so that you are able to service the poor, FM said.

Source: www.economictimes.indiatimes.com

IT Offices remain open on 26, 27, 28, 30 & 31 to accept Income Tax Return for Asstt. Year 2014-15

Income Tax Department has issued an order u/s. 119(1) of the Income Tax Act, 1961 regarding filing of Income Tax Annual Return for Asstt. 2014-15.  By this order it came to know that IT offices remain open on  26th July and 27th July, 2014 to accept the return of Income as normal office hours though it is Saturday and Sunday respectively.

This direction has been issued by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961. Special arrangements have also been made by way of opening additional receipt counters, wherever required, on 26th, 27th, 28th, 30th and 31st July, 2014 in order to facilitate the taxpayers in filing their returns of income conveniently and in a timely manner. The due date for filing of return of income within the meaning of Explanation 2(c) to Section 139(1) of the Income Tax Act, 1961 is 31st July, 2014.

Download Order regarding to accept the Income Tax Return for Asstt. Year 2014-15.

Special Return Receipt Counters
The Chairman, CBDT shall inaugurate the Special Return Receipt Counters tomorrow at 10.30 AM at Pratyaksh Kar Bhavan, B-Block, ground Floor, Civic Centre, Minto Road, New Delhi-2. Extensive arrangements have been made by the Department to facilitate the taxpayers in filing their income tax returns.

Income Tax Exemption Limit for Deductions u/s. 80CCC of Contribution to Pension Fund.

DEDUCTION IN RESPECT OF CONTRIBUTION TO PENSION FUND

Section 80CCC has been inserted with effect from the AY 1997-98. This section provides a deduction to an assessee (individual) for any amount paid or deposited by him in any annuity plan of LIC of India or any other insurer for receiving pension from a fund referred to in section 10(23AAB). The deduction shall be restricted to Rs. 1,00,000/-.

The following points should be remembered:-
Where after claiming the deduction, the assessee or his nominee surrenders the annuity before the maturity date of such annuity, the surrender value shall be taxable in the hands of the assessee or his/her nominee, as the case may be, in the year of receipt.

If deduction is claimed u/s 80CCC, pension received will be taxable in the hands of the assessee or the nominee, as the case may be in the year of receipt.

Rebate (with reference to the amount paid u/s 80CCC) will not be available u/s 88 to persons to whome deduction under this section has been allowed.

The maximum amount deductible u/s 80CCC is Rs. 1,00,000/-. Moreover, the aggregate amount of deduction :-
  • u/s 80C, 80CCC , 80CCD(1) and 80CCD(2) should not exceed Rs.  1,00,000/-(for Asstt. Year  2006-07to 2011-12).
  • u/s 80C, 80CCC and 80CCD(1) cannot exceed Rs.  1,00,000/-(from Asstt. Year 2012-13).
Note:-
  1. Section 80CCD(1) – Contribution by an employee (or any other individual) towards notified pension scheme.
  2. Section 80CCD(2) – Employer’s contribution towards notified pension scheme.

7th Pay Important issue DA/DR Merger denied to discuss in Premiminary meeting held on 23.07.14-BPS

7th Pay Commission did not agree to discuss the important issue of DA/DR Merger in the preliminary meeting held on 23rd July 2014.

Brief feedback on BPS Preliminary meeting with 7th CPC on 23rd July 2014

Friends,

BPS and BCPC were the first Pensioners’ organizations to be called for preliminary meeting with 7th CPC on 23rd to discuss the reply to questionnaire, the Memorandum & the allied issue submitted by them. Only 45 minutes were given to each organization. S.C.Maheshwari G.S. BPS /Chairman BCPC had the opportunity to discuss the issues from both the Forums:

Following issues were discussed & explained to the full satisfaction of the Chairman & the members of 7th CPC who were very receptive, patient & themselves actively participated in deliberations which ensued.

At the end Chairman remarked that NC JCM Memorandum is very exhaustive, includes most of the issues raised today & that he will take it as a base for consideration. 1.New Pension Scheme: Response of commission was negative. Commission was apprised of the back ground, its failure in other countries & the fate of EPS 95.They were also informed that it will be acceptable if 50% of last drawn is ensured.

2.Reasonable ratio to be maintained between maximum & minimum salary & Pension and adoption & adoption of common multiplication factor for revision

3.Ratio between maximum & minimum paid to be 5:1 for Defense Personnel and re-employment of ex servicemen as well as raising status of defense civilian pensioners to ex servicemen.

4.Inclusion of full DA in emoluments for calculating Pension. There was a very lively discussion on the issue in which the entire penal of 7th CPC participated & cross examined Secy. Genl BPS. Finally they agreed to BPS point of view.

5.100% neutralization of inflation : It was explained to the Commission that 100% neutralization is illusionary and DA is not sufficient, as the very system of calculation is faulty & unrealistic,

6. Payment additional pension to start from the age of 65 years. Chairman agreed that age of 100 years for Pensioners was illusionary.

7. Parity in Pensions :It was explained to the commission that full parity exists for High Court Supreme Court Judges, Govt. has agreed to OROP in case of Defence pensioners & Sr Bureaucrats (S32 & above ) have achieved it through modified parity formula of 6th CPC but for others who too are citizens of same category & same country even the formula for parity given by 5th CPC & accepted by Govt. is not being honored.

8. Pension to BSNL pensioners. It was submitted that since they are governed by CCS(Pension) Rules 1972. They be treated at par with C.G.Pensioners for the purpose of revision of Pension, Chairman advised to submit separate Memorandum

9. Discrimination in medical facilities to pensioners of Postal department & merger of 33 Postal dispensaries with CGHS.

10. Medical facilities. To Pensioners following issues raised in BPS memorandum were discussed in detail & the Chairman was agreeable to BPS views. (i) “Health is not a luxury” and “not be the sole possession of a privileged few”. It is a Fundamental justify of all present & past Employees! To ensure hassle free health care facility to Pensioners/family pensioners, Smart Cards be issued irrespective of departments to all Pensioners and their Dependents for cashless medical facilities across the country. These smart cards should be valid in
  • all Govt. hospitals
  • all NABH accredited Multi Super Specialty hospitals across the country which have been allotted land at concessional rate or given any aid or concession by the Central or the State govt.
  • all CGHS, RELHS & ECHS empanelled hospitals across the country.
Medical attendants. For reimbursement of bills for treatment & for hospitalization . No referral should be insisted in case of medical emergencies. For the purpose of reference for hospitalization & reimbursement of expenditure thereon in other than emergency cases Doctors/Medical officers working in different Central/State Govt. department dispensaries/health units should be recognized as Authorized medical attendant.

The enjoyment of the highest attainable standard of health is recognized as a fundamental justify of all workers in terms of Article 21 read with Article 39for a, 41, 43, 48A and all related Articles as pronounced by the Supreme Court in Consumer Education and Research Centre & Others vs Union of India (AIR 1995 Supreme Court 922) The Supreme court has held that the justify to health to a worker is an integral facet of meaningful justify to life to have not only a meaningful existence but also robust health and vigour.

Therefore, the justify to health, medical aid to protect the health and vigour of a worker while in service or post retirement is a fundamental justify-to make life of a worker meaningful and purposeful with dignity of person. Thus health care is not only a welfare measure but is a Fundamental justify. We suggest that, all the pensioners, irrespective of pre-retiral class and status, be treated as same category of citizens and the same homogenous group. There should be no class or category based discrimination and all must be provided Health care services at par .

(ii). Hospital Regulatory Authority: To ensure that the hospitals do not avoid providing reasonable care to smart card holders and other poor citizens, a Hospital Regulatory Authority should be created to bring all NABH-accredited hospitals and NABL-accredited diagnostic Labs under its constant monitoring of quality, rates for different procedures & timely bill payments by Govt. agencies and Insurance companies. CGHS rates may be revised keeping in mind the workability as per market conditions.

(iii). Fixed Medical allowance (FMA): As is recorded in Para 5 of the minutes of Committee of Secretaries (COS) held on 15.04.2010 (Reference Cabinet Secretariat, Rashtrapati Bhavan No 502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting dated 15.4.2010) which discussed enhancement of FMA. “CGHS card estimates for serving Personnel: Since estimates are not available separately for pensioners M/O Health & Family Welfare had assessed the total cost per card p.a. in 2007-2008 = Rs 16435 i.e. Rs.1369 per month for OPD”.

Adding to it inflation, the figure today is well over Rs 2000/- PM. Ministry of Labour & Employment, Govt. of India vide its letter no. G-25012/2/2011-SSI dated 07.06.2013 has already enhanced FMA to Rs 2000/- PM for EPFO beneficiaries. Thus, to help elderly pensioners to look after their health, Adequate raise in FMA will encourage a good number of pensioners to opt out of OPD facility which will reduce overcrowding in hospitals. OPD through Insurance will cost much more to the Govt. As such the proposal for raising Fixed Medical allowance to Pensioners is fully justified and is financially viable.

We suggest that FMA for all C.G. Pensioners be raised to at least Rs 2000/- PM without any distance restriction linking it to Dearness Relief for automatic further increase. We further suggest that FMA be exempted from INCOME TAX. Fixed Medical Allowance (FMA) is a compensatory allowance to reimburse the medical expenses. As Medical Reimbursement is not taxable, FMA should also be exempted from Income Tax.

11. DA /DR merger commission did not agree to discuss the issue as it is not covered byTOR

12.Interim relief Commission response did not appeared to be very positive on our stressing the issue they said they will look into.

13. 6th CPC anomalies. Chairman asked for submission of detailed list through supplementary memorandum.

14.Plight of those born on 1.1.1938/46: Commission said, they will look into.

15. Plight of those retiring on 30June Commission said, they will look into.

16. Restoration of Commutation in 12 years: commission said thy will look into the details provided.

17. Grievance redressed. Chairman was critical of the functioning of the system already existing & remarked “ you will not be benefited. Court is the only alternative”

Friends, BPS has done its duty well, issues raised by us has received due attention from NCJCM as well as the 7th CPC.

S.C.Maheshwari
Secy Genl BPS

Source: www.scm-bps.blogspot.in

Last date for submit Annual Income Tax Return for Asstt. Year 2014-15 - 31st July, 2014 & ITR FAQs.

Q 1. What are the modes of filing return of income?
Return of income can be filed in paper mode or in e-filing mode. If return of income is filed through electronic mode, then the assessee has following two options:
  1. E-filing using a Digital Signature
  2. E-filing without a Digital Signature
If return of income is filed by using a digital signature, then there is no requirement of sending the signed copy, ITR V (i.e., acknowledgement of return filed electronically) to Bangalore CPC. However, if the return is filed without using digital signature, then the assessee shall send the signed copy of ITR V to CPC, Bangalore at the following address. Income Tax Department - CPC, Post Bag No -1, Electronic City Post Office, Bangalore -560100, Karnataka within 120 days of uploading the return either by ordinary post or speed post only.

Q 2. When is it mandatory to file return of income?
It is mandatory for a company and a firm to file its return on income. However, for an individual and HUF, it is mandatory to file return of income if his/its gross total income (before claiming Chapter VI-A deduction) exceeds the maximum exemption limit. The maximum exemption limit and the slab rates for Assessment Year 2014-15 are given in the following table:

Q 3. Is it mandatory to file return of income if I have a PAN?

No, it is not mandatory to file return of income if your income is less than maximum exemption limit, irrespective of the fact that you have been allotted a PAN.

Q 4. I am an Individual and resident of India. Do I need to file return if my income is below taxable limit but I am having an account in a foreign bank?

Yes, it is mandatory for you to file the income-tax return. In view of newly inserted proviso to Section 139(1), it is mandatory to file income-tax return, if following conditions are satisfied:

 (a) The assessee is resident and ordinarily resident in India;

 (b) He has any of following:

  (i) Signing authority in any account located abroad;

 (ii) Any asset located abroad; or

(iii) Financial interest in any entity located abroad.

The assessee is required to provide requisite details of such account, assets or financial interest in the return of income.

Q 5. Which form should I opt for to file my income-tax return for the assessment year 2014-15?




Download ITR-1
Download ITR-2
Download ITR-3
Download ITR-4S
Download ITR-4


Q 6. What are the due dates for filing of income-tax returns for the year ending March 31, 2014?


Q 7. Whether it is mandatory to file return electronically?
E-filing of return is mandatory for:

(a) Every company;

(b) Every AOP or BOI

(c) A person [other than a company and a person required to furnish return in form ITR 7] whose total income exceeds Rs. 5 lakh rupees during the previous year 2013-14;

(d) A firm or an individual or HUF who are required to get their accounts audited under section 44AB;

(e) Every person claiming tax relief under Section 90, 90A or section 91;

(f) A political party [if its income exceeds the limit, without claiming exemptions under Section 13A, which is not chargeable to tax]

(g) Every resident and ordinarily resident individual and HUF, if he/it has any of following:

  (i) Signing authority in any account located abroad;

 (ii) Any asset located abroad; or

(iii) Financial interest in any entity located abroad.

Q 8. When is it mandatory to file return electronically with digital signature?
E-filing of return with digital signature is mandatory for:

(a) Every company;

(b) A firm or an individual or HUF who are required to get their accounts audited under section 44AB;

(c) A Political Party [it its income exceeds the limit, without claiming exemptions under Section 13A, which is not chargeable to tax]

Q 9. How to file return electronically?

Income-tax return can be filed electronically with the help of following instructions:

(a) Visit https://incometaxindiaefiling.gov.in;

(b) Choose the appropriate ITR form suitable for your status and source of income (Refer FAQ No. 5) and download excel utility (available only for ITR 1, 2, 3 and 4s) or java utility from the aforementioned website;

(c) Fill the income-tax return in the excel utility or java utility and generate XML file. Java utility has an option to pre-fill the information on basis of PAN card or previous year's return and submit return directly (without generating XML file) but for that one has to create his account at income-tax e-filing portal;

(d) Use the following link to create your account: https://incometaxindiaefiling.gov.in/e-Filing/ Registration/ RegistrationHome.html;

(e) After creation of account, you need to login and then click on "submit return" option;

(f) Select the 'assessment year' and 'form name', then click 'next';

(g) Click on Browse option to select the generated XML file and upload it;

(h) Java utility gives an option to submit return directly, i.e., without generating XML file. Thus, taxpayers who are required to file return in ITR 4, 5, or 7 or those taxpayers who opt to file ITR 1, 2, 3, or 4S in Java utility shall not follow the instructions given above in point (e), (f) and (g).

 (i) On successful submission of ITR form, a pop-up menu will be displayed on the screen. Click on "Download" button to get the acknowledgement, i.e., ITR-V;

The final step is to get the printout of such acknowledgement, get it signed and send it to "Income Tax Department - CPC, Post Bag No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka" within 120 days of uploading the return either by ordinary post or speed post only.

If ITR-V is not submitted within stipulated period of 120 days, then it will be deemed that assessee has not filed the return of income.

The assessees who are required to file the ITR-1 may alternatively fill and file their return online without downloading the excel or java utility after login at the incometaxindiaefiling.gov.in.

If assessee is using digital signature ("DSC") for uploading the return, it is to be registered on the website beforehand. If return is filed through DSC, assessee would not be required to send the print-out of the acknowledgement to CPC.

Q 10. What if I have forgotten the login details of https://incometaxindiaefiling.gov.in?

(a) Click on forget password or on the following link https://incometaxindiaefiling/gov.in/e-Filing/UserLogin/ LoginHome.html;

(b) Enter your user ID (i.e., your PAN) and the captcha (i.e., the security random code) and click on continue;

(c) In the password reset page, one of the following options can be selected:

  (i) Answer the secret question;

 (ii) Upload the digital signature certificate; or

(iii) Enter e-filed acknowledgement number or bank account number as furnished in return of income.

(d) Enter new password twice and click on 'Reset Password' to generate new password;

(e) If you are unable to retrieve your password, send an email request from registered email-id, to validate@incometaxindia.gov.in with following details:

  (i) PAN:

  (ii) Name of the assessee as appearing on the PAN card;

(iii) Date of Birth/Date of incorporation;

 (iv) Name of father as appearing on the PAN card;

 (v) Registered PAN Address;

New password will be communicated to you by the income-tax department via email.

Q 11. If the last date to file income-tax return is a public holiday, whether the next day would be treated as "last date of filing"?

Normally, income-tax department continues its operation during the last days of filing of income-tax return even if the last days eventually fall on Sundays or on holidays. However, if department is closed on the last due date, then the immediately next working day of the department would be considered as the last date of filing of income-tax return.

Q 12. How can I find my jurisdictional Assessing Officer?

Either click on Services>Know your Jurisdiction given on the home page of incometaxindiaefiling.gov.in or use the following link https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html to know your jurisdictional officer.

Q 13. How to know TAN of my deductor?


It can be found either on the Form 16/16A or in the 26AS tax credit statement available on https://www.tdscpc.gov.in/app/login.xhtml TRACES (TDS Reconciliation and Correction Enabling System) website.

Q 14. How would I know whether my e-return has been processed at CPC Bangalore?
Log on to the e-filing website and select CPC processing status to check the status of return.

Q 15. I am the authorized signatory of the firm. While filing the return of income I get an error that 'PAN mentioned in Verification section is invalid'.
In case of return of income of firm/company/AOP/BOI/Artificial judicial person/Co-operative society/trust, etc., PAN of authorized signatory is required to be filled in verification field instead of the assessee's PAN.

Q 16. I had e-filed my return and had identified some mistake which seems to be a 'mistake apparent from record'. Can I make rectification with CPC in paper form?

No, the CPC doesn't accept any of the manual correspondence. You have to login to incometaxindiaefiling.gov.in and have to file rectification request using web portal.

Q 17. What to do in case of TDS mismatch?

Even if the credit for TDS as claimed in the return matches with the balance as appearing in the Form 26AS, Assessing Officer may raise a demand for payment of differential amount due to TDS mismatch. The reason for such difference could be as under:

(1) TAN of deductor was wrongly mentioned

(2) Name of deductor was not spelt out correctly

(3) Tax deducted by one deductor was wrongly included in the amount of tax deducted by another deductor

In case of such TDS mismatch, an assessee can file a rectification request.

Steps to file the rectification request:

(a) Login to your account in https://incometaxindiaefiling.gov.in

(b) Go to My Account > Rectification request

(c) You need the following to fill in the required details:

  (i) PAN

 (ii) Assessment Year

(iii) Latest Communication Reference Number (it starts with CPC/Assessment Year/)

(iv) Latest CPC Order date
(Request Rectification)
(d) Click on Validate to go to next step

(e) On the next screen, choose 'Taxpayer is correcting data for Tax Credit Mismatch Only' from the drop-down box of 'Rectification Request Type'

(f) Check from the following relevant boxes for which item taxpayer is seeking rectification:

  (i) TDS on salary income details

 (ii) TDS on other than salary income details
   (Submit Information)

(g)  Fill in all the relevant details including details of tax deducted and reported in the return of income filed earlier

(h)  Click on the button 'Submit' to submit the rectification request.

The TDS mismatch may also be due to error in TDS return filed by deductor. In such a situation, you should intimate the deductor about such error and require him to rectify the TDS return.

In press note no. 402/92/2006, dated April 17, 2014 CBDT had noted that many taxpayers commit mistakes while furnishing details of tax credit in the return of income. Such mistakes include:

(a) Invalid/incorrect TAN of deductor;

(b) Furnishing same TAN for more than one deductor;

(c) Filing information in wrong TDS Schedules in the Return Form;

(d) Furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax, etc.

Consequently, the tax credit could not be allowed to the taxpayers while processing returns despite the tax credit being available in Form 26AS statement. The CBDT, therefore, directs the taxpayers to verify if the demand raised on them is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands. The rectification requests have to be submitted to the jurisdictional Assessing Officer in case the return was processed by such officer, or the taxpayer is informed by CPC, Bangalore that such rectification is to be carried out by Jurisdictional Assessing Officer. In all other cases of processing by CPC, Bangalore, an online rectification request can be made (as defined above).

Q 18. I have filed my return electronically and furnished the signed copy of acknowledgment to the CPC. However, I have received a letter from CPC that said copy of acknowledgement had not been received. Since time-limit to resend the acknowledgement already expired, whether it will be deemed that I have not filed the return?

The same issue has been dealt with by Bombay High Court in the case of Crawford Bayley & Co. v. Union of India [2011] 16 taxmann.com 323 (Bom.), wherein the Court, despite expiry of the time-limit to send the acknowledgment, allowed additional time to assessee to resend the same, since the assessee had furnished adequate material before the Court in support of its contention that having filed return electronically, it had also submitted ITR-V Form by ordinary post.

Based on the above, it can be inferred if you have already submitted the ITR-V to the CPC then you can resend the acknowledgement, even though the time-limit for filing ITR-V has already expired, provided you have sufficient evidences to substantiate the fact that you have send the acknowledgment earlier within 120 days of uploading the return either by ordinary post or by speed post only.

Q 19. Can I file the return even if the due date to file the same has expired?

Yes, you can file return of income belatedly within a period of one year from the end of relevant assessment year or before the completion of assessment, whichever is earlier.

Q 20. What are the consequences of filing belated return?

If return is filed after the end of relevant assessment year, in that case penalty of five thousand rupees can be levied under section 271F.

If the return of income is not filed within the due date specified under section 139(1), loss incurred during the year under the heads 'Profits and gains of business and professions' and 'Capital gains' cannot be carried forward to next year.

Q 21. Can I file return of income even if my income is below taxable limits?

Yes, you can file return of income voluntarily even if your income is less than the maximum exemption limit.

Q 22. I have filed my return of income; however, I omitted to claim benefit of Section 80C deduction. What should I do?
The benefit of omitted claim can be availed only by filing a revised return. But in that case you have to ensure that your original return has been filed within the due date as return can be revised only if it has been filed originally within the specified due date (Refer FAQ 6). An income-tax return can be revised within one year from the end of the relevant assessment year or before completion of assessment, whichever is earlier.

Q 23. I am a salaried person. My total taxable salary is Rs. 5,40,000 on which tax has been duly deducted under Sec. 192 amounting to Rs. 39,140. During finalization of return, I found that my bank has given me a credit of Rs. 1,24,500 towards interest. Please guide me what should I do now?
In this situation, you have to pay the balance taxes on the interest income (or any other income) before filing of return. As per revised computation, your total tax liability would be Rs. 64,787. Since tax of Rs. 39,140 has already been deducted under Sec. 192, the balance tax of Rs. 25,647 should be paid along with interest under Section 234B and 234C. The tax and interest can be paid in any authorized bank through Challan No. ITNS 280. Alternatively, it can be paid through online bank portal through following link https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp.

Q 24. What documents are needed to be enclosed along with the return of income?
Income-tax returns are annexure less. Hence, there is no need to enclose any document(s) along with the return of income. Thus, documents like TDS certificate, balance sheet, Profit & Loss A/c, Capital A/c, proof of investments, etc., are not to be attached along with the return of income. However, these documents should be retained and have to be produced before the Assessing Officer whenever he requires us to do so.

Q 25. My employer has deducted tax without allowing me relief of section 89. Can I claim the relief while filing the return of income?

If the employer fails to provide relief under section 89 and deducts excess tax, then you can claim such relief in your return of income and can claim refund of excess tax deducted.

Q 26. How to claim deduction on donation given to an organization registered under section 80G?
Deduction under section 80G can be claimed by filing the return of income in which the following details need to be given:
(a)     Name of donee;
(b)     PAN of donee;
(c)     Address of donee; and
(d)     Amount of donation.

Q 27. How to avoid deduction of tax, if during the year the accrued interest on deposit in my saving account is Rs. 15,000 and my total income including such interest income is below taxable limit?

You can file a self-declaration to the banker in Form 15H (in case of Senior Citizen) or Form 15G (in case of assessees below 60 yrs. of age) stating that your income is below taxable limit.

Q 28. Whether salaried persons are not required to file return of income for assessment year 2014-15?

Exemption from filing return of income isn't available for salaried persons for Assessment Year 2014-15, as exemption from filing of return of income for salaried persons was allowed under Notification No. 9/2012 only in respect of the Assessment Year 2012-13. Similar notification for Assessment Years 2013-14 and 2014-15 has not been issued. Therefore, every assessee earning income of more than basic exemption limit shall file the return of income.

Q 29. Whether all salaried taxpayers can choose ITR-1 for filing income-tax returns?

No, all salaried taxpayers can't choose ITR-1 for filing tax returns from Assessment Year 2013-14 onwards. They can choose ITR-1 only if they are claiming exemption under sec. 10 (e.g. HRA, Conveyance allowance, etc.) up to Rs 5,000 or less. So, if taxpayer is claiming any exemption under sec. 10 which exceeds Rs. 5,000, he cannot file return of income in ITR-1 (As per amended Rule 12 of income-tax rules).

Q 30. I omitted to submit rent receipt and investment proof to my employer because of which relief for HRA and certain other deductions weren't given to me; the tax deducted from my salary income is higher than my actual tax liability. How to claim refund of such excess tax?

Even if the benefit of HRA under Section 10(13A) and deduction under Chapter VI-A are not considered by the employer in Form 16, yet they can be claimed in the income-tax return. Accordingly, the excess tax deducted by employer can be claimed as refund.

Q 31. Can I claim deduction under section 80C of interest on housing loan?

Repayment of principal portion of residential housing loan will be allowed as deduction under section 80C within the overall limit of Rs. 1,00,000. However, such deduction is available if housing loan is borrowed by assessee from:
(a)     Central Government or any State Governments
(b)     Banks, including a co-operative banks
(c)     LIC
(d)     National Housing Bank
(e)     Domestic Public company providing long-term finance for construction or purchase of houses in India
(f)     Assessee's employer, being an authority or a board or a corporation or any other body established or constituted under Central or State Act
(g)     Assessee's employer being, a public company or a public sector company or a university or a university established by law or a college affiliated to such university or a local authority or a co-operative society.

However, interest on housing loan is deductible under section 24(b) while computing income chargeable to tax under the head "Income from house property".

Q 32. How to claim benefit of tax deducted in advance on income which is taxable in subsequent years?

Certain provisions of TDS (including TCS) require deduction of tax at source at the time of payment or at the time of credit, whichever occurs earlier. Advance payments are also subjected to TDS. Old ITR form did not have any mechanism to carry forward the excess TDS, thus, taxpayers were required to show the entire TDS as a deduction and claim refund of excess TDS. To overcome the issues, the Schedule TDS/TCS in the ITR forms introduced two new columns:

(a) Unclaimed TDS/TCS brought forward

  (i) Financial Year in which deducted/collected

 (ii) Amount brought forward

(b) TDS/TCS being claimed this year from amount brought forward or from TDS/TCS of current financial year.

Thus, the portion of TDS credit pertaining to income taxable in the subsequent year can be carried forward to subsequent year and can be claimed in the year in which income is offered to tax.

Q 33. What will be the consequences if return of income is filed without making payment of self-assessment tax?

To discourage the practice of filing of return of income without payment of self-assessment tax, the Finance Act, 2013 has amended Explanation to section 139(9) so as to provide that the return of income shall be deemed as defective return if tax including interest thereon, if any, payable in accordance with the provisions of the Act has not been paid on or before the date of furnishing of the return.

Q 34. Whether is it mandatory to furnish PAN of the landlord to claim exemption in respect of house rent allowance ?

If employee is claiming exemptions for house rent allowance and the annual rent paid by him exceeds Rs. 1,00,000, it is mandatory for him to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

Q 35. Who is required to file audit report electronically?
Following persons are required to get their accounts audited and file the audit report electronically:

(a) A person carrying on business, if his turnover exceeds Rs. 1 crore

(b) A person carrying on profession, if his gross receipt exceeds Rs. 25 lakh

(c) A person eligible to compute taxable income on presumptive basis but does not opt to do it so

(d) Trusts or institutions registered under section 12AA or claiming exemption under section 10(23C)(iv),(v), (vi) or (via) if their total income exceeds the amount not chargeable to tax.

(e) Persons claiming deduction under section 80-IA, 80-IC.

(f) Non-Resident or a foreign company who is in receipt of royalty or fee for technical services in pursuance of an agreement with the Indian government or an Indian concern (subject to conditions specified under section 44DA)

Q 36 Is there any requirement to file audit report electronically with digital signature?

Yes, following persons are required to file their audit report electronically along with digital signature-

(a) Every company

(b) A firm, Individual or HUF who is required to get its accounts audited under section 44AB.

Q 37. Is there any other report which has to be filed electronically?

Following reports have to be filed electronically:

(a) Report of Transfer Pricing under Section 92E

(b) Report on computation on Net worth in case of slump sale under Section 50B

(c) Report on computation of book profit in case of companies liable to pay MAT under Section 115JB

(d) Report certifying the correctness of deductions claimed under section 10A, 10AA, 80-IB, 80-ID, 80JJAA, 80LA

(e) Report on tonnage taxation scheme

Q 38 Is there any restriction on number of returns that can be filed using same email-ID or same mobile number?

Yes, only 10 returns can be filed using same email-id or same mobile number.

Source: www.taxmann.com

Avoide Penalties, Issue TDS Certificate on or before 30th July, 2014 of Q1 for Asstt. Year 2015-16

Now a days all TDS Deductors want to avoide every consequences arising on behalf of this matter from Income Tax Department, therefore issue TDS Certificate on or before 30th July, 2014 of Q1 for Fin. Year 2014-15 and Asstt. Year 2015-16. The Last date to issue a TDS/TCS Certificates for Q1 of Fin. Year 2014-15 is 30th July, 2014.  This last/due date is applicable for all deductors who are other than the office of the Government.

Delay in requesting certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted.

Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):

Default/ Failure
Section
Nature of Demand
Quantum of demand or penalty
Failure to deduct tax at source
201(1)
Tax demand
Equal to tax amount deductible but not deducted

201(1A)
Interest
@1 % p.m. of tax deductible

271C
Penalty
Equal amount of tax deductible but not deducted
Failure to deposit tax at source
201(1)
Tax demand
Equal to tax amount not deposited
201(1A)
Interest
@1.5% p.m. of tax not deducted
276B
Prosecution
Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine
Failure to apply for TAN No. u/s 203A
272BB
Penalty
Rs. 10000
Failure to furnish prescribed statements u/s 200(3)
272A(2)(k)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to issue TDS certificate u/s 203
272(A)(g)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount.
Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C)
272(A)(i)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to mention PAN of the deductee in the TDS statements and certificates
272B
Penalty
Rs. 10000

If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.


Please note:
It is now mandatory for all the deductors to issue the TDS certificates after generating and downloading the same from “TRACES”(www.tdscpc.gov.in). Refer to Circular no.3/2011 dated 13-5-2011, Circular No.1/ 2012 dated 9-4-2012 (in respect of 16A)

Download Form-16A from TRACES (Click Here)

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