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The government has launched an app called GST Rate FinderThe app is now available on Android platform and will soon be offered on Apple's iOS also

The government on Friday launched an app called GST Rate Finder-- which as the name suggests is your ready reckoner for all the tax rates that are to be levied under the GST (Goods and Services Tax) regime. The app has been developed by the Central Board of Excise and Custom (CBEC).

"First app of its kind which would be a ready reckoner for public, for customers, for consumers, traders, students, anyone who wishes to have very handily (GST) rates available. So, if you are in a market, a restaurant or anywhere you can easily check what the (GST) rate is," CBEC chairperson Vanaja Sarna said.

GST Update

 Cess over the peak rate of 28% on specified luxury and sin goods

 To ensure single interface – all administrative control over
 90% of taxpayers having turnover below Rs. 1.5 cr would vest with State tax administration
 10% of taxpayers having turnover below of Rs. 1.5 cr. would vest with Central tax administration
 taxpayers having turnover above Rs. 1.5 cr. would be divided equally between Central and State tax administration
 Threshold limit for exemption to be Rs. 20 lac (Rs. 10 lac for special category States)
 Compounding threshold limit to be Rs. 50 lac – not available to inter-State suppliers, service providers (except restaurant service) & specified category of manufacturers
 Government may convert existing Area based exemption schemes into reimbursement based scheme
 Four tax rates namely 5%, 12%, 18% and 28%
 Some goods and services would be exempt
 Separate tax rate for precious metals

👆🏻 Notification issued by Maharashtra VAT department on applicability of Vat to builders registered under Composition scheme. Builders need to pay vat @ 1% on advances received before 31st May 2017 irrespective of agreement done.... and include the advances received in the monthly or quarterly return of June 2017 as turnover.

Step-by-wise Procedure for e-filing of TDS Returns with effect from 01/05/2016
With effect from 01/05/2016 etds quarterly statements/returns shall not be e-filed or uploaded at TIN NSDL website. However they shall be uploaded at TRACES TDSCPC website

TDS Statement Upload – User Manual

Pre-Requisites for Uploading TDS Statement

To upload TDS, user should hold valid TAN and should be registered in e-Filing
Statement should be prepared using the Return Preparation Utility (RPU) and validated using the File Validation Utility (FVU). The utilities can be downloaded from tin-nsdl website (https://www.tin-nsdl.com/).
Valid DSC should be registered in e-Filing.
Upload TDS/TCS Statement To Upload TDS, the steps are as below:

Step 1: In e-Filing Homepage, Click on “Login Here”
tds return online upload

Step 2: Enter User ID (TAN), Password, and Captcha. Click Login.

tds return online upload

Step 3: Post login, go to TDS Upload TDS.

tds return online upload

Step 4: In the form provided, select the appropriate statement details from the drop down boxes for:

FVU Version
Assessment Year
Form Name
Quarter
Upload Type
Note:



TDS can be uploaded from Assessment Year 2011-12
Only Regular Statements can be uploaded, the Correction statement can beØ uploaded only through tin-nsdl portal.
tds return online upload

Step 5: Click Validate to Validate Statement details.

tds return online upload procedure

Step 6: “Upload TDS ZIP file”: Upload the TDS/TCS statement (Prepared using the utility downloaded from tin-NSDL Website)

Step 7: “Attach the Signature file” Upload the signature file generated using DSC Management Utility for the uploaded TDS ZIP file. For further details on generating Signature file click here. Navigate to Step by Step Guide for Uploading Zip File (Bulk Upload)

Step 8: Click on “Upload” button.

Once the TDS is uploaded, success message will be displayed on the screen. A confirmation mail is sent to the registered email id.

online tds return upload procedure



View Filed TDS Statement

To View the Filed TDS statement, the steps are as below:

Step 1: Login to e-Filing, Go to TDS

online tds return upload procedure

Step 2: In the form provided, select the details from the drop down boxes for Assessment Year, Form Name and Quarter respectively for which the TDS was uploaded.

online tds return upload procedure

Step 3: Click on “View Details”.

Step 4: The status of the TDS uploaded is displayed.

online tds return upload procedure

Once uploaded the status of the statement would be “Uploaded”. The uploaded file will be processed and validated. Upon validation the status will be either be “Accepted” or “Rejected” and would be reflected within 24 hours from the time of upload. In case if “Rejected”, the rejection reason will be displayed.

If the status is “Rejected”, click on the Token Number to view the error details.

online tds return upload procedure

Reason for rejection would be displayed as below:

online tds return upload procedure



Step 6: If the status is “Accepted”, click on the Token Number to see the details of acknowledgement of the statement uploaded for all future reference.

TIN Tax Information Network (TIN) is an initiative by Income Tax Department of India (ITD) for the modernization of the current system for collection, processing, monitoring and accounting of direct taxes using information technology.    Know more

🎭 A new year is like a blank book. 📜

The pen is in your hands. ✒👌🏻

It is your chance to write a beautiful story for yourself.☺

Happy New Year 🎊

Scrutiny online: Makes things easier for the tax payer

Arnav Pandya

There is now an effort being made by the income tax department to reduce the physical interaction between the taxpayers and the authorities. One of the ways in which this is planned is through the issue of communication for assessment for scrutiny through the electronic form by emails. This might seem to be a small thing of moving the assessment details from a physical letter to online but it is an indicator of a big change that can have a big impact on the manner in which taxpayers look at the department and how they feel comfortable handling the situation. Here is a look at what this change will entail and how an individual will benefit from the move.

Easy and quick

The first benefit that a taxpayer will witness when the scrutiny details are called for through the email route is that the process will be completed quickly and without any delay. There are times when the physical notice for the scrutiny often takes a lot of time to reach the individual and this leaves them scrambling to get the required information within the specified time period. When this is done through the email route then the question of wasting of time does not arise. The other benefit that comes along with this is also that there is a direct receipt of the details so it is also harder to miss. The fact that this will delivered in the inbox of the taxpayer means that this can be immediately seen and this will enable them to take quick action on the issue.

Clarity of requirements

Once the physical attendance in the income tax office is not required there is also a side benefit in the form of clarity of details that are required by the tax department. In case of an actual meeting there are a lot of instances wherein the tax officer wants a lot of additional details and documents that might not have been mentioned in the original letter which makes the job tough for the taxpayer. In case of an online response the details have to be clarified up front and this is what will have to be given by the taxpayer. This removes any element of confusion and makes the process easier to implement and hence is something that will benefit the tax payer.

Reduced troubles

There are also a lot of instances wherein the tracking of the details that have been given by the tax payer becomes difficult and this requires repeated visits to the income tax department. There are also cases wherein the matter does not get resolved and keeps dragging on for a long period of time. This can reduce if the online system is handled properly and this will prove to be a big boon for the taxpayer. Many of them are worried about entering the income tax department premises and hence this will also address this worry as they can submit whatever details are required online. This is the crucial part of the whole process. Just sending the notice online calling for details will not be the end of the matter because it is important for the reply process to be completed in a similar manner.

Overall

The manner of implementation of the process will be watched carefully because it has the potential to ensure that one of the biggest worries of the tax payer is addressed effectively. This will also raise the confidence of the taxpayer in the system and make the entire process smooth for them. This will take some time to show results but the direction is appropriate.

Your son overseas sent you some money. Should you pay tax?

Sometimes children support their parents financially. Children settled abroad make transfers to account of parents to support them. A lot taxpayers are unsure about the tax treatment of such transactions. Let’s take a look at the tax implications –

When money is transferred to a parents account

If you transfer money to your parent’s account there is no tax implication for you as a giver or for them as a receiver. They don’t need to pay tax on this gift. As per the income tax act, exchange of gifts between relatives are exempt from tax. Relatives includes your parents, your spouse, your spouse’s parents, your brother & sister and their spouses, including your spouse’s brother & sister and their spouses. Any of you or your spouse’s lineal ascendant or descendant are also included. Any gifts in cash, bank transfer or cheque or in kind exchanged between you and these relatives is not taxable. This is irrespective of whether they have any taxable income or not.

When money received is invested in fixed deposits, shares or other avenues

When you transfer money to your parents account so they can buy a house, or a car or invest money in fixed deposits, or buy shares, there is no tax on the receipt of this money. But any income that will arise from these investments shall be directly taxable in your parent’s hands. For example, your parents deposit the money received in a fixed deposit account in their own name, any interest income earned is directly taxable for them. No clubbing of income is attracted is such a case. Similarly, when they use the funds to invest in shares and incur capital gains and losses, those are reported in your parent’s tax returns and tax paid on them accordingly.

When money is returned to the children

If the parents decide to transfer money back to their children, again this transfer is considered as a gift and there is no tax implication for the giver or receiver. Also, any income earned by the children from such funds or income from assets purchased from these funds shall be taxable directly in the hands of the children. However, this is only true for transfer of money to adult children. In case funds are transferred to account held by a minor child, any income thereon shall be taxable in the hands of parents. Such income earned by a minor from transfer of funds by parents is clubbed with the income of the parent.

Any sums of money or asset received from parents by way of a will or inheritance is exempt from tax.

Reporting of receipts from children or parents

If you have received a large sum of money as gift, you can choose to report this receipt under exempt income in your tax return. Though there is no specification for reporting gifts under exempt income, since these are not taxable in the first place. In case of receipts of large sums or fixed payments, it is also recommended that a proper documentation of the gift transaction be maintained.