Charters Fort Advisory LLP

*Major Amendments in Income Tax applicable for A.Y. 2018-19: *

1. Limit for payment of expenses by cash (Both capital and revenue expenditure) reduced from RS. 20,000 to RS. 10,000 per day in aggregate per person.

2. No Person shall receive an amount of two lakh rupees or more, by cash (Sec 269ST).

3. For below Rs. 2 crores turnover cases - For Non cash sales (through Digital, Online, cheque, Bank etc.) : Net Profit will be taken as 6% of Turnover/ Gross Receipt. It is 8% For Cash Sales.

4. Tax Exemption limit is Rs.2,50,000/- (same as earlier) After that, up to 5 Lakh, Tax rate is 5% (earlier it was 10%).

5. Tax rebate is reduced to Rs.2500 from Rs.5000 per year for taxpayers with income up to Rs.3,50,000 (earlier Rs.5,00,000).

6. Surcharge at 10 percent of tax levied on rich taxpayers with income between Rs.50 Lakh and Rs.1 Crore. The rate for surcharge for the super-rich, with income above Rs.1 Crore will remain 15%.

7. Payment of Rent - Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirement) - Deduct TDS @ 5%.

8. Capital gain in respect of Land and Building period reduced from 3 Years to 2 Years and Base year shifted from 01/04/1981 to 01/04/2001.

9. Corporate tax rate for the account year 2017-18 for companies with annual turnover up to Rs.50 crores (in account year 2015-16) is reduced to 25%. No change in firm tax rate of 30%.

10. Donation made exceeding Rs.2000 will be not be eligible for deduction under section 80G.

11. Shares of unquoted shares to be taxed at (deemed) fair value.

12. Tax exemption will be available on reinvestment of capital gains in notified redeemable bonds (In addition to investment in NHAI and REC bonds).

13. Deduction for first time investors in listed equity shares or listed units of equity oriented funds under the Rajiv Gandhi Equity Savings Scheme under section 80CCG of IT act 1961 is withdrawn from FY 2017-18. If an individual has already claimed deduction under this scheme before April 1, 2017, They shall be allowed to avail a deduction for the next two years.

14. No tax is applicable for partial withdrawals from National Pension System. NPS subscribers will be able to withdraw 25% of their contribution to the corpus for emergencies before retirement. Withdrawal of 40% of the corpus is tax free before retirement.

15. In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.

16. From Financial Year 2017-18, if Return is not filed within due date, late fee of Rs.5,000 for delay up to 31st December, and Rs.10,000 thereafter. Such fee will be restricted to Rs.1,000 for small taxpayers with income up to Rs.5 lakh.

17. A simple one page tax return form is to be introduced for Individual with taxable income up to Rs. 5 lakh (excluding Business Income). Those filing returns for the first time in this category will generally not be subject to scrutiny.

18. Time period for revision of tax return cut to one year (from 2 years) from the end of relevant financial year or before completion of assessment, whichever is earlier.

19. Where Section 12AA registered trusts modify their object clause, they need to apply within 30 Days to CIT for approval.

20. It is mandatory to disclose the Aadhar number while filing IT Return. Earlier it was optional to disclose Aadhar number. Generally the last date of filing IT return is 31 July. Therefore, it is advisable for taxpayer to get their Aadhar number at the earliest.

Darkness to Light!!!!!

VACANCIES : 5 posts
Place : Vashi & Panvel

Taxation, Accounting & Corporate Affairs

Qualification : CA/CS Inter
B. Com having experience in field.

Salary: As per Industry Standards.

Email I'D - [email protected]

The cycle has begin!

GSTN asks Traders to File July Returns from 5 Aug Onwards | Taxscan The Goods and Services Tax Network (GSTN) will open the facility of filing returns from 5th August 2017. By this, the first GST return for the month of July can be filed till 20th August, said by GSTN CEO Navin Kumar said today. Businesses can start filing their first GST returns and pay taxes for …

Income Tax Return Filing for Financial Year 2016-17, has been extended to 5th August 2017.

The same has yet to be reflected on Department's Website.

Income tax return filing deadline extended to August 5, 2017 In view of the difficulties faced by taxpayers, date for filing of Income Tax Returns for FY 2016-17 has been extended to 5th August, 2017.

Rental income from residential property has been exempt from the goods and services tax (GST) but any earning over Rs20 lakh annually from renting or leasing for commercial purposes would attract the levy.

Revenue secretary Hasmukh Adhia said that if the house property is rent out for shop or office purpose, no GST will be levied up to Rs20 lakh. “Rental income received from residential house is exempt. But if you have given your unit to commercial enterprise, then it is taxable if you are getting more than Rs20 lakh as rent,” Adhia said at the GST Master Class.

The taxpayer earning more than the exempted threshold will have to register with the GST Network and pay taxes. GSTN chief executive Prakash Kumar said that as many as 69.32 lakh registered excise, service tax and VAT payers have migrated to the GSTN portal.

There are over 80 lakh such assessees in the earlier indirect taxation regime. Out of the 69.32 lakh, as many as 38.51 lakh have completed the entire registration process and registration certificate is being issued to them.

The remaining 30.8 lakh taxpayers are being sent SMS and emails by GSTN so that they complete the registration process by giving the details of the business like main place of business, additional place of business, promoters details.

*GST- Migration Update*

For taxpayers whose RC or PID is cancelled while GST Migration. They are advised to make new registrations at GST portal provided they must mention the details of the existing registrations under Excise/ServiceTax Laws In order to claim ITC as per rule 117 of CGST act 2017.

IMPACT OF GST ON SMALL TRADERS

As we know, despite of numerous benefits of GST it will be very difficult for traders, turnover not less than 20 lakhs, to adopt it in its present form because of the complications that would arise after its implementation.

PROBLEMS THAT ARE GOING TO ARISE

ISSUE OF INVOICES FOR VERY LOW AMOUNT: In GST regime issue of invoice is the most important so as to get input tax credit on the purchases made.Without the generation of invoices no input credit is allowed the chain will break and the system will collapse.But this will become the nightmare for the small traders like chemists, confectionary shop owners, stationary shop owners etc.
Let us explain it with the help of an example:

Suppose a customer visits a chemist shop to buy 2 tablets of medicine worth Re. 4. issue of invoice for such a small amount is neither logical and not at all possible, and if the person don’t issue the invoice then he will not get the ITC and his tax already paid on purchase will become the part of its cost thereby increasing its price.

CUMBERSOME PROCEDURE

A very small trader will not be able to install a computer with an accounting software to meet these requirements because of lack of knowledge .

GST RETURNS
A lot of returns is required to be filed by small traders atleast 3 returns is required to be filed by traders, other than compounding tax payers and Input service distributor, each month that is GSTR 1, GSTR 2 and GSTR 3 etc. along with the annual return. This becomes very difficult for a small trader to comply with.

CONSEQUENCIES

This will lead to frustration among the small traders for complying with the procedures and this ultimately lead to issuance of fake invoices which deviate the GST from its path. And also the frustration among traders will lead to adopting Unethical means to comply with the provisions of GST.

HOW TO RESOLVE THESE ISSUES

The Govt. should conduct seminars for these small traders so as to make them aware about the procedures about how to comply them. And to aware them about the GST committee for them which assist them in complying the procedures and help them in case any problem arise.

With changes in the economic situation and Statutory Laws, Digital Signature Certificates [ D.S.C ]are becoming compulsory for almost every nature of business.

To avoid inconvenience and provide value for money, We are introducing DSC at Rs 999/- only!

Features :
Delivery within 2 hours!
Low cost
2 Years Validity

Contact : +912232205555
[ Navi Mumbai/ Mumbai/ Thane ]

+912232215555
[ Raigad / Pune ]

Thank you for all your love and blessings!
Amazed by all the bliss showered.
It's time now! Let's roll!

We solicit your esteemed presence at the Opening Ceremony of our New Office
On
Saturday, 1st July 2017 at 5 P.M - 11 P.M
At
315-A, Shiv Centre, Sector-17, Vashi.
Navi Mumbai.

Thank You!