Income Tax Easy Filing

➡️ CBDT has introduced new *ITR Forms for the AY 2020-21* (FY 19-20)

Key changes in ITR forms for the Assessment Year 2020-2021 are as below:

✍️ House ownership: Individual taxpayers who are joint owners of house property can NOT file ITR 1 or ITR 4.

✍️ Passport: One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.

✍️ Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY.

✍️ Foreign travel: If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the actual amount spent.

✍️ Electricity consumption: If your electricity bills have been more than Rs. 1 lakh in aggregate during the FY, you need to disclose the actual amount.

✍️ Investment details: Details of investment qualifying for deduction under chapter VIA with bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020.

Celebrate this Sunday at at 1pm to 7pm.

8 Major Changes in respect of Income tax for FY 2018-19

1. LTCG tax on equity investments
The biggest change implemented this financial year is the reintroduction of the long term capital gains tax on stock market investments. 10% Long Term Capital Gains (LTCG) tax will be imposed on profits exceeding Rs. 1 lakh made from the sale of stocks and equity-oriented mutual funds that have been held for over a year. All profits made by investors up to 31 January 2018 have been grandfathered. Indexation benefit will be available on the sale of shares listed after 31 January. While Ulips are exempt from this tax at present, this can change going forward.

“Note: Calculation of Long Term gain along with its detailed calculation and its impact will discuss in upcoming article No.03.”

2. Standard deduction
The budget announced a standard deduction of Rs 40,000 for salaried employees, but it also did away with the tax exempt annual transport allowance of Rs 19,200 and medical reimbursement of Rs 15,000. The difference of Rs 5,800 is the reduction in the amount of taxable salary. The tax you save on this amount will depend on the income tax slab you are in.

The main advantage of the move is that the calculation will now be much less complicated. The deduction will be made directly from your salary, and you won’t need to submit investment proof or bills to avail of the benefit.

3. Tax advantages for senior citizens
There’s good news for senior citizens, many of whom rely on interest income to meet their expenses. The exemption limit on income from interest for those over 60 has been hiked five times from Rs 10,000 to Rs 50,000 per year. All deposits held by senior citizens across both banks and co-operative banks, as well as post offices will be eligible for this exemption.

Another important benefit extended to senior citizens is that of the higher limit of deduction for health insurance premium and medical expenditure. This amount has been raised from Rs 30,000 to Rs 50,000 under Section 80D of the Income Tax Act. The deduction limit for medical expenses for specified critical illnesses under section 80DDB, has been hiked to Rs 1 lakh for all senior citizens from Rs 60,000 (in case of senior citizens) and Rs 80,000 (for super senior citizens).

4. NPS exemption for the self employed
Till date, only salaried employees were allowed withdraw up to 40% of their total accumulated corpus from the National Pension Scheme (NPS) at maturity or account closure, without any tax implications. But now, self-employed subscribers are also eligible for this benefit. This move will bring non salaried subscribers of the NPS on par with salaried employees.

5. Longer lock-in for bonds under 54EC
The Union Budget has extended the lock-in period of investments in capital gain tax exemption bonds from three years to five years.

This means that earlier you had to stay invested in the 54EC bonds for three years to get the tax break, but from now on your money will be locked in for five years.

6. Long Term Capital Gains Bond only eligible for capital gains from property
From FY 2018-19, the long term capital gains tax exemption by investing in long term capital gains bond from specified companies (NHAI, REC or PFC) u/s 54EC would only be available for capital gains from sale of property including land, residential or commercial building. Until this year these bonds could be used for capital gains arising from sale of any asset.

7. DDT imposed on equity mutual funds
Dividend Distribution Tax (DDT), which was applicable only to debt funds so far, will now apply to equity mutual funds as well. While dividends will remain tax free in the hands of the investor, the fund house will have to pay 10% tax on income distributed to investors. This might be a good time for those who rely on dividends from equity funds as a form of income to review their investment strategy, since this tax will reduce the inhand return for investors if they choose the dividend option.

8. Hike in education cess on income tax
Although it is only a marginal increase, the hike in the education cess means all taxpayers will have to pay a little more tax than they used to. The cess on income tax has been increased by 3% to 4%, as a result of which, the effective tax liability of taxpayers in the highest tax bracket will increase to 31.2% from 30%. For the middle income taxpayers, it will go up from 20% at present to 20.8%; and for those in the lowest bracket, liability will increase from 5% to 5.2%.

Source - TaxGuru

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CBDT releases e-filing utility for ITR 3, ITR 4 and ITR 7 for A.Y. 2015-16

To download the forms please access the link given below:

https://incometaxindiaefiling.gov.in/

e-Filing Home Page, Income Tax Department, Government of India

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Service tax rate has been hiked from 12.4% to 14% effective from today(June 1).
Finance Minister Arun Jaitley in his Budget had proposed to raise service tax from 12.36 per cent (including education cess) to 14 per cent.
The tax is levied on all services, expect a small negative list. Some of the key services that will attract higher tax and hence become costlier are: railways, airlines, banking, insurance, advertising, architecture, construction, credit cards, event management and tour operators.

The Ministry of Finance has issued a press release dated 31.-05.2015 stating that Income Tax Return Forms ITR 1, 2 and 4S have been simplified for convenience of the tax payers. A number of controversial topics such as the requirement to give details of foreign trips or expenditure thereon have been dispensed with. It is also stated that as the software for these forms is under preparation and are likely to be available for e-filing by 3rd week of June 2015, the time limit for filing these returns is also proposed to be extended up to 31st August, 2015 (31.08.2015). A separate notification will be issued in this regard.

Govt likely to be released the Tax Return Forms by 10th June. Also, that Due date has been extended to 31st August 2015.
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To file your returns, upload your Form 16 at www.incometaxeasyfiling.com

Collection ! Revenue ! Namo...
CBDT finally managed to mop up Rs 6.95 lakh crore revenue against revised target of Rs 7.05 lakh crore last fiscal

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PAN Card to be issued in Flat 48 hours

The government will soon launch a facility under which a PAN card will be issued within 48 hours of applying.

“An online facility for issuance of PAN is on the anvil under which an applicant can get a PAN card within 48 hours,”.

Besides, special camps will be organised throughout the country, including rural areas, to help people get PAN cards.

PAN ( Permanent Account Number) is a 10-digit alphanumeric number, issued in the form of a laminated card by the Income Tax Department.

Recently, the Central Board of Direct Taxes (CBDT), the apex policy-making body of the I-T Department, had issued a notification making the Elector’s Photo Identity Card (EPIC) and Aadhaar valid proofs of “date of birth” for obtaining a PAN card.

PAN is required for filing return of income, sale or purchase of any immovable property beyond a certain amount, and sale or purchase of a motor vehicle, among others.

Dear All,
When team is there, you dont need to worry ! We will make it simple and hastle free for you :-)

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Filing I-T returns becomes tougher New forms seek detailed break-up of capital gains, foreign assets, beneficiaries, foreign travel and expenses incurred