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Income Tax Act 1961

cost of inflation index....... (with new base year)

Cost Inflation Index

FY

Index

2001- 02

100

2002-03

105

2003-04

109

2004-05

113

2005-06

117

2006-07

122

2007-08

129

2008-09

137

2009-10

148

2010-11

167

2011-12

184

2012-13

200

2013-14

220

2014-15

240

2015-16

254

2016-17

264

2017-18

272

 

Are you a ……….

a)           -  Banking Company/Co-operative Bank/NBFC/MF Trustee/SRO/RTO/DP/Stock Broker/Share Transfer Agent/Merchant Banker/Portfolio Manager/Investment Advisor

b)          -  Trader of Goods and your turnover exceeds Rs.1.00 Cr. For FY 2016-17

c)          -  Service Provider and your turnover exceeds Rs.0.25 Cr. For FY 2016-17

d)          -  Foreign Tour Operator/Foreign Exchange Dealer

      and have received payments of Rs.50000 or more without quoting PAN of the Payee/Depositor

RULE 114E of the Income-tax Rules, 1962 mandates you to file Form 61A within 31st May 2017  Since extended to 30th June 2017

 

Cash Transactions for which details needs to submitted by 31.05.2017

a)

Amount Transaction Exceeding Rs. 50,000/-

1. Payment in cash to hotels or restaurant against a bill or bill at any one time

2. Payment in cash for foreign travel or purchase of foreign exchange

3. payment to a mutual Fund for unit purchase

4. payment for acquiring bounds or debenture issued by a company or institution

5. payment to RBI for acquiring Bonds issued by RBI

6. Deposit with banking company or a co-operative bank in a day

7. payment in a day for purchase of bank drafts or pay order or bankers cheque

8. Time deposit in a day with

(i) Banking company or a co-operative bank

(ii) Post Office

(iii) A Nidhi

(iv) NBFC

9. Pre-paid payment document as defined by RBI

 10. Payment as Life Insurance premium in a year

b)

Exceeding Rs. 1 Lakh Per transaction

1. Contract for sale or purchase of securities (other than shares)

2. Sale or purchase of share of utilised companies

c)

Exceeding Rs. 2 Lakh Per transaction

Sale or purchase by any person of goods or services of any nature

d)

Exceeding Rs. 10 Lakh or valued by stamp valuing authority

Sale or purchase by any person of any immovable property

 

 

GUIDE TO USE PROPER INCOME TAX RETURN FORM

Name of the ITR Form

Applicability

ITR 1 (SAHAJ)

For Individuals having Income from Salary & Interest.

ITR 2

For Individuals & HUFs not having Income from Business or Profession

ITR 2A

For Individuals & HUFs not having Income from Business or Profession and Capital Gains and who do not hold foreign assets

ITR 3

For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship

ITR 4

For Individuals & HUFs having income from a proprietory business or profession

ITR 4S (SUGAM)

For Individuals/HUF/Partnership Firm having income from presumptive business

ITR 5

For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing ITR-7

ITR 6

For Companies other than companies claiming exemption under section 11

ITR 7

For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 

      

 

S. no.

Section

Particulars

Cap on cash transaction

Penalty for cash transaction

1

13A

Exemption to political parties

Receipt of cash donation above Rs 2,000

No exemption

2

35AD

Investment linked deduction for capital expenditure

Payment above Rs 10,000 for any capital expenditure

No deduction

3

40A(3)

Disallowance for cash expenditure

Payment of any expenditure above Rs. 10,000

No deduction

 

 

Payments for plying, hiring or leasing of goods carriage above Rs 35,000

 

4

43(1)

Determination of actual cost of asset

Payment above 10,000 for purchase of asset

Such payment won't be included in actual cost of asset (viz, No depreciation)

5

80D

Health Insurance premium

No cash payment allowed

No deduction

6

80G

Donations to certain funds and charitable institutions

Donations above Rs. 2,000

No deduction

4

80GGA

Donations for scientific research or rural development.

Cash donation above Rs. 10,000

No deduction

5

80GGB

Donations by companies to political parties.

No cash payment allowed

No deduction

6

80GGC

Donations by any person to political parties

No cash payment allowed

No deduction

7

269SS

Prohibition on acceptanceof cash loans, deposits, etc.

Rs. 20,000 or more

100% of amount received

8

269ST

Prohibition on receiving cash

Rs. 2,00,000 or more

100% of amount received

9

269T

Prohibition on repayment of loans or deposits in cash

Rs. 20,000 or more

100% of amount paid

 

 

 

 

Sl.  

NATURE OF TRANSACTION

MANDATORY QUOTING OF PAN (RULE 114B) 

Existing requirement

 New requirement

 1.

Immovable property

i)  Sale/ purchase valued at Rs.5  lakh or more

i) Sale/ purchase exceeding Rs.10 lakh;     ii. Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.

2.

Motor vehicle (other than two wheeler)

All sales/purchases

No change

3

Time deposit

Time deposit exceeding Rs.50,000/- with a banking company

 i.      Deposits with Co-op banks, Post Office, Nidhi, NBFC companies will also need PAN;    ii.    Deposits aggregating to more than Rs.5 lakh   during the year will also need PAN

4

Deposit with Post Office Savings Bank

Exceeding Rs.50,000/-

Discontinued

5

Sale or purchase of securities

 Contract for sale/purchase of a value exceeding Rs.1 lakh

No change

6

Opening an account (other than time deposit) with a banking company.

 All new accounts.

i. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts);                                                                             ii. Co-operative banks also to comply

7

 Installation of telephone/ cellphone connections

All instances Discontinued

 

  8.      

Hotel/restaurant bill(s)

Exceeding Rs.25,000/- at any one time (by any mode of payment)

Cash payment exceeding Rs.50,000/-.

9

 Cash purchase of bank drafts/ pay orders/ banker’s cheques

Amount aggregating to Rs.50,000/- or more during any one day

Exceeding Rs.50,000/- on any one day.

10. 

Cash deposit with banking company

Cash aggregating to Rs.50,000/- or more during any one day

 Cash deposit exceeding Rs.50,000/- in a day.

11

Foreign travel

Cash payment in connection with foreign travel of an amount exceeding Rs.25,000/- at any one time (including fare, payment to travel agent, purchase of forex)

Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time (including fare, payment to travel   agent)

12

Credit card Application 

to banking company/ any other company/institution for credit card

No change. Co-operative banks also to comply.

13

Mutual fund units

Payment of Rs.50,000/- or more for purchase

Payment exceeding Rs.50,000/- for purchase.

14

 Shares of company

Payment of Rs.50,000/-  or more to a company for acquiring its shares

 i. Opening a demat account;                ii.Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction.

15

Debentures/ bonds

 Payment of Rs.50,000/- or more to a company/ institution for acquiring its debentures/ bonds

Payment exceeding Rs.50,000/-.

16

RBI bonds

 Payment of Rs.50,000/-or more to RBI for acquiring its bonds

Payment exceeding Rs.50,000/-.

17

Life insurance premium

Payment of Rs.50,000/- or more in a year as premium  to an insurer

 Payment exceeding Rs.50,000/- in a year.

18

Purchase of jewellery/bullion

Payment of Rs.5 lakh or more at any one time or against a bill

Deleted and merged with next item in this table

19

Purchases or sales of goods or services

No requirement 

Purchase/ sale of any goods or services exceeding Rs.2 lakh per transaction. 

20

Cash cards/ prepaid instruments issued under Payment & Settlement Act

No Requirement

Cash payment aggregating to more than Rs.50000/- in a year

  

 

 

CBDT Directive regarding Grant of TDS Credit in mismatched cases........Instructions No.275/29/2014-IT-(B)(01-06-2015) 

CBDT Directive For Expeditious Disposal Of S. 154 Rectification Applications During FY 2015-16

The CBDT has addressed a letter dated 5th June 2015 expressing concern that the rectification applications u/s 154 filed by the taxpayers before the field officers are not being dealt with promptly. It is pointed out that the Citizen’s Charter of the Department requires that applications for rectification are to be disposed of within two months from the end of the month in which application is received. The CBDT has directed that all rectification applications that were received up to 31″ March 2015 should be disposed of on or before 20th June 2015. It I stated that the Income-tax Department is committed to prompt redressal of taxpayer grievances and all the officers of the Department are expected to take lead in fulfilling this commitment.

CBDT Circular No. 9 Dated 9th June 2015

 
CBDT revises guidelines on condonation of delay in filing returns claiming refund or carry forward of loss and set-off

CBDT has vide Notification No. 41/2015 Dated 15.04.2015 notified Form ITR-1, ITR-2 and ITR-4S for Assessment Year 2015-16 i.e Financial Year 2014-15. The Notification also made Several Change in Rule 12 of Income Tax Rules, 1962 which is related to Condition of Filing of Income Tax Return.  A brief summary of Changes is as follows :-

 

General

1)            ITR-1 (SAHAJ) & ITR-4S (Sugam) cannot be filed by individual who has earned any income from source outside India.

2)            Introduction of EVC for verification of return of income filed as an option to send ITR-V to CPC, Bangalore.

3)            Super Senior citizen are now allowed to file  ROI in paper form even though their income exceed Rs 5 lakhs subject to other conditions.

 

ITR-1

1)            Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2)            Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

 

ITR-2

1)            Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2)            Details of Foreign Travel made if any (For resident and nonresident both) includes, Passport No, Issued at, name of country, number of times travelled and expenditure

3)            Details of utilization of amount deposited in capital gain account scheme for years preceding to last two assessment years. Particulars asked include year of utilization, amount utilized, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.

4)            In case of LTCG & STCG not chargeable to tax to Non-resident on account of DTAA benefit, It is required to furnish Country name, Article of DTAA, TRC obtained or not?,

5)            For Non-resident, Income from other sources, If any income chargeable to tax at special rate provided in DTAA, It is now required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not?, Corresponding rate of tax under income tax act.

6)            Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

7)            In schedule FA- Foreign assets disclosure, Following details added.

a)            Foreign Bank accounts details: It is now further require to furnish Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India.

b)            In similar manner, details of income from Financial interest in any entity outside India along with details of income offered to tax in ITR-2 from such income.

c)            Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India.

ITR-4S

1)                  Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2)                  Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

 

To read a copy of the notification click here:

 

http://www.incometaxindia.gov.in/communications/notification/notification41_2015.pdf

 

 

 

CBDT Circular On Non-Chargeability Of Interest U/s 234A On S. A. Tax

 

The CBDT has issued Circular No. 2/2015 dated 10.02.2015 on the issue of chargeability of interest u/s 234A of the Income-tax Act, 1961 on self-assessment tax paid before the due date of filing the return of income. The CBDT has pointed out that in CIT vs. Prannoy Roy 309 ITR 231 (SC), the Supreme Court has held that interest u/s 234A of the Act on default in furnishing return of income shall be payable only on the amount of tax that has not been deposited before the due date of filing the return for the relevant assessment year. The CBDT has accordingly reviewed the present practice of charging interest u/s 234A of the Act on self-assessment tax paid before the due date of filing the return of income. The CBDT has decided that no interest u/s 234A of the Act is chargeable on the amount of self-assessment tax paid by the assessee before the due date of filing the return of income.

Rashmikant Kundalia vs. UOI (Bombay High Court)

S. 234E: The late filing of TDS returns by the deductor causes inconvenience to everyone and s. 234E levies a fee to regularize the said late filing. The fee is not in the guise of a tax nor is it onerous. The levy is constitutionally valid 

CIRCULAR NO. 1/2014 [, DATED 13-1-2014

 Subject: TDS under Chapter XVII-B of the Income-tax Act, 1961 on service tax componentcomprised in the payments made to residents - clarification regarding

 The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as 'the Act'), on the amount of rent paid/payable without including the service tax component. Representations/letters has been received seeking clarification whether such principle can be extended to other provisions of the Act also.

 2. Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajasthan High Court dated 1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Act.

 3. The matter has been examined afresh. In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.

 4. This circular may be brought to the notice of all officer for compliance