Why one should file ITR ? and Its Importance?

A considerable measure of people assume that recording assessment forms is intentional and in this way reject it as superfluous and troublesome. As we will see, this is definitely not an exceptionally solid point of view on assess recording.

Recording government forms is a yearly movement seen as a good and social obligation of each mindful native of the nation. It is the reason for the legislature to decide the sum and methods for use of the natives and gives a stage to the assesse to guarantee discount, among different types of help every once in a while.

1. Recording returns is a sign you are mindful

The administration orders that people who gain a predefined measure of yearly pay must document an assessment form inside a pre-decided due date. The expense as figured must be paid by the person. Inability to make good on regulatory obligation will welcome punishments from the Income Tax Department.

The individuals who win not as much as the recommended level of wage can document returns deliberately.

Recording returns is an indication that you are capable. Not simply that, it additionally makes it less demanding for people and organizations to go into consequent exchanges since their wage is recorded by the assessment office with relevant expense, assuming any, having been paid.

2. Recording returns is compulsory now and again

Regardless of whether your pay level does not meet all requirements for compulsory documenting of profits, it might at present be a smart thought to intentionally record returns. In many states, enlistment of unfaltering properties requires progressing as evidence the expense forms of most recent three years. Recording returns makes it less demanding to enroll the exchange.

3. Your credit or card organization might need to see your arrival

On the off chance that you intend to apply for a home advance in future it is a smart thought to keep up an enduring record of documenting returns as the home credit organization will in all probability demand it. Truth be told, you may much consider documenting your companion’s profits on the off chance that you need to apply for a credit as a co-borrower. In like manner, even Mastercard organizations may demand verification of return before issuing a card.

Money related establishments may demand seeing your profits in the course of recent years previously executing with you. Indeed, the administration may make it required for them to do as such, in this way in a roundabout way prodding people to record returns routinely notwithstanding when it’s intentional.

4. In the event that you need to guarantee alteration against past misfortunes, an arrival is important

Recording returns on time has numerous points of interest paying little heed to whether you draw the recommended level of wage important to document returns.

Different misfortunes brought about by an individual or a business, both theoretical and also non-speculative, here and now and also long haul capital misfortunes and different sorts of misfortunes not recorded in the assessment form in a money related year, can’t be appeared for exception in consequent years with the end goal of expense figuring. So it’s best to document returns consistently, on the grounds that no one can tell when you might need to guarantee an alteration against past misfortunes.

5. Documenting returns may demonstrate valuable in the event of updated returns

In the event that the assesse hasn’t recorded the first return, he can’t in this way document a reexamined return, notwithstanding when he truly needs to. Under the Income Tax Act, non-recording of profits can draw in a punishment of Rs 5,000. So while documenting returns is an intentional action, there are times when it could hold legitimate ramifications for the individuals who don’t do as such, particularly on the off chance that they should record a reexamined return in future.
A considerable measure of people assume that recording assessment forms is intentional and in this way reject it as superfluous and troublesome. As we will see, this is definitely not an exceptionally solid point of view on assess recording.

Recording government forms is a yearly movement seen as a good and social obligation of each mindful native of the nation. It is the reason for the legislature to decide the sum and methods for use of the natives and gives a stage to the assesse to guarantee discount, among different types of help every once in a while.

1. Recording returns is a sign you are mindful

The administration orders that people who gain a predefined measure of yearly pay must document an assessment form inside a pre-decided due date. The expense as figured must be paid by the person. Inability to make good on regulatory obligation will welcome punishments from the Income Tax Department.

The individuals who win not as much as the recommended level of wage can document returns deliberately.

Recording returns is an indication that you are capable. Not simply that, it additionally makes it less demanding for people and organizations to go into consequent exchanges since their wage is recorded by the assessment office with relevant expense, assuming any, having been paid.

2. Recording returns is compulsory now and again

Regardless of whether your pay level does not meet all requirements for compulsory documenting of profits, it might at present be a smart thought to intentionally record returns. In many states, enlistment of unfaltering properties requires progressing as evidence the expense forms of most recent three years. Recording returns makes it less demanding to enroll the exchange.

3. Your credit or card organization might need to see your arrival

On the off chance that you intend to apply for a home advance in future it is a smart thought to keep up an enduring record of documenting returns as the home credit organization will in all probability demand it. Truth be told, you may much consider documenting your companion’s profits on the off chance that you need to apply for a credit as a co-borrower. In like manner, even Mastercard organizations may demand verification of return before issuing a card.

Money related establishments may demand seeing your profits in the course of recent years previously executing with you. Indeed, the administration may make it required for them to do as such, in this way in a roundabout way prodding people to record returns routinely notwithstanding when it’s intentional.

4. In the event that you need to guarantee alteration against past misfortunes, an arrival is important

Recording returns on time has numerous points of interest paying little heed to whether you draw the recommended level of wage important to document returns.

Different misfortunes brought about by an individual or a business, both theoretical and also non-speculative, here and now and also long haul capital misfortunes and different sorts of misfortunes not recorded in the assessment form in a money related year, can’t be appeared for exception in consequent years with the end goal of expense figuring. So it’s best to document returns consistently, on the grounds that no one can tell when you might need to guarantee an alteration against past misfortunes.

5. Documenting returns may demonstrate valuable in the event of updated returns

In the event that the assesse hasn’t recorded the first return, he can’t in this way document a reexamined return, notwithstanding when he truly needs to. Under the Income Tax Act, non-recording of profits can draw in a punishment of Rs 5,000. So while documenting returns is an intentional action, there are times when it could hold legitimate ramifications for the individuals who don’t do as such, particularly on the off chance that they should record a reexamined return in future.

This message was not delivered to kundan:
A considerable measure of people assume that recording assessment forms is intentional and in this way reject it as superfluous and troublesome. As we will see, this is definitely not an exceptionally solid point of view on assess recording.

Recording government forms is a yearly movement seen as a good and social obligation of each mindful native of the nation. It is the reason for the legislature to decide the sum and methods for use of the natives and gives a stage to the assesse to guarantee discount, among different types of help every once in a while.

1. Recording returns is a sign you are mindful

The administration orders that people who gain a predefined measure of yearly pay must document an assessment form inside a pre-decided due date. The expense as figured must be paid by the person. Inability to make good on regulatory obligation will welcome punishments from the Income Tax Department.

The individuals who win not as much as the recommended level of wage can document returns deliberately.

Recording returns is an indication that you are capable. Not simply that, it additionally makes it less demanding for people and organizations to go into consequent exchanges since their wage is recorded by the assessment office with relevant expense, assuming any, having been paid.

2. Recording returns is compulsory now and again

Regardless of whether your pay level does not meet all requirements for compulsory documenting of profits, it might at present be a smart thought to intentionally record returns. In many states, enlistment of unfaltering properties requires progressing as evidence the expense forms of most recent three years. Recording returns makes it less demanding to enroll the exchange.

3. Your credit or card organization might need to see your arrival

On the off chance that you intend to apply for a home advance in future it is a smart thought to keep up an enduring record of documenting returns as the home credit organization will in all probability demand it. Truth be told, you may much consider documenting your companion’s profits on the off chance that you need to apply for a credit as a co-borrower. In like manner, even Mastercard organizations may demand verification of return before issuing a card.

Money related establishments may demand seeing your profits in the course of recent years previously executing with you. Indeed, the administration may make it required for them to do as such, in this way in a roundabout way prodding people to record returns routinely notwithstanding when it’s intentional.

4. In the event that you need to guarantee alteration against past misfortunes, an arrival is important

Recording returns on time has numerous points of interest paying little heed to whether you draw the recommended level of wage important to document returns.

Different misfortunes brought about by an individual or a business, both theoretical and also non-speculative, here and now and also long haul capital misfortunes and different sorts of misfortunes not recorded in the assessment form in a money related year, can’t be appeared for exception in consequent years with the end goal of expense figuring. So it’s best to document returns consistently, on the grounds that no one can tell when you might need to guarantee an alteration against past misfortunes.

5. Documenting returns may demonstrate valuable in the event of updated returns

In the event that the assesse hasn’t recorded the first return, he can’t in this way document a reexamined return, notwithstanding when he truly needs to. Under the Income Tax Act, non-recording of profits can draw in a punishment of Rs 5,000. So while documenting returns is an intentional action, there are times when it could hold legitimate ramifications for the individuals who don’t do as such, particularly on the off chance that they should record a reexamined return in future.

 

A significant proportion of individuals accept that chronicle evaluation frames is purposeful and along these lines dismiss it as unnecessary and troublesome. As we will see, this is unquestionably not an incredibly strong perspective on survey recording.

Recording government shapes is a yearly development seen as a decent and social commitment of each careful local of the country. It is the purpose behind the governing body to choose the entirety and strategies for utilization of the locals and gives a phase to the assesse to ensure markdown, among various sorts of assistance now and then.

1. Recording returns is a sign you are careful

The organization arranges that individuals who gain a predefined proportion of yearly pay must archive an appraisal shape inside a pre-chosen due date. The cost as figured must be paid by the individual. Powerlessness to follow through on administrative commitment will welcome disciplines from the Income Tax Department.

The people who win not as much as the suggested level of wage can record returns purposely.

Recording returns means that you are proficient. Not just that, it also makes it less requesting for individuals and associations to go into resulting trades since their wage is recorded by the appraisal office with important cost, accepting any, having been paid.

2. Recording returns is obligatory once in a while

Notwithstanding whether your compensation level does not meet all necessities for necessary reporting of benefits, it may at present be a shrewd idea to deliberately record returns. In numerous states, enrollment of unwavering properties requires advancing as confirmation the cost types of latest three years. Recording returns makes it less requesting to enlist the trade.

3. Your credit or card association may need to see your entry

In case you mean to apply for a home development in future it is a shrewd idea to keep up a persevering record of reporting returns as the home credit association will more likely than not request it. Frankly, you may much consider recording your buddy’s benefits in case you have to apply for a credit as a co-borrower. In like way, even Mastercard associations may request check of return before issuing a card.

Cash related foundations may request seeing your benefits over the span of late years already executing with you. Surely, the organization may make it required for them to do in that capacity, along these lines roundaboutly goading individuals to record returns routinely despite when it’s purposeful.

4. If you have to ensure modification against past hardships, an entry is vital

Recording returns on time has various purposes of enthusiasm paying little notice to whether you draw the prescribed level of wage essential to archive returns.

Diverse disasters achieved by an individual or a business, both hypothetical and furthermore non-theoretical, without a moment’s hesitation and furthermore whole deal capital setbacks and distinctive sorts of incidents not recorded in the appraisal frame in a cash related year, can’t be showed up for exemption in ensuing years with the true objective of cost figuring. So it’s best to record returns reliably, in light of the fact that nobody can advise when you may need to ensure a change against past adversities.

5. Archiving returns may show profitable in case of refreshed returns

If the assesse hasn’t recorded the main return, he can’t along these lines archive a reevaluated return, despite when he genuinely needs to. Under the Income Tax Act, non-recording of benefits can attract a discipline of Rs 5,000. So while reporting returns is a purposeful activity, there are times when it could hold authentic consequences for the people who don’t do all things considered, especially in case they should record a reconsidered return in future.

This message was not delivered to kundan:
A significant proportion of individuals accept that chronicle evaluation frames is purposeful and along these lines dismiss it as unnecessary and troublesome. As we will see, this is unquestionably not an incredibly strong perspective on survey recording.

Recording government shapes is a yearly development seen as a decent and social commitment of each careful local of the country. It is the purpose behind the governing body to choose the entirety and strategies for utilization of the locals and gives a phase to the assesse to ensure markdown, among various sorts of assistance now and then.

1. Recording returns is a sign you are careful

The organization arranges that individuals who gain a predefined proportion of yearly pay must archive an appraisal shape inside a pre-chosen due date. The cost as figured must be paid by the individual. Powerlessness to follow through on administrative commitment will welcome disciplines from the Income Tax Department.

The people who win not as much as the suggested level of wage can record returns purposely.

Recording returns means that you are proficient. Not just that, it also makes it less requesting for individuals and associations to go into resulting trades since their wage is recorded by the appraisal office with important cost, accepting any, having been paid.

2. Recording returns is obligatory once in a while

Notwithstanding whether your compensation level does not meet all necessities for necessary reporting of benefits, it may at present be a shrewd idea to deliberately record returns. In numerous states, enrollment of unwavering properties requires advancing as confirmation the cost types of latest three years. Recording returns makes it less requesting to enlist the trade.

3. Your credit or card association may need to see your entry

In case you mean to apply for a home development in future it is a shrewd idea to keep up a persevering record of reporting returns as the home credit association will more likely than not request it. Frankly, you may much consider recording your buddy’s benefits in case you have to apply for a credit as a co-borrower. In like way, even Mastercard associations may request check of return before issuing a card.

Cash related foundations may request seeing your benefits over the span of late years already executing with you. Surely, the organization may make it required for them to do in that capacity, along these lines roundaboutly goading individuals to record returns routinely despite when it’s purposeful.

4. If you have to ensure modification against past hardships, an entry is vital

Recording returns on time has various purposes of enthusiasm paying little notice to whether you draw the prescribed level of wage essential to archive returns.

Diverse disasters achieved by an individual or a business, both hypothetical and furthermore non-theoretical, without a moment’s hesitation and furthermore whole deal capital setbacks and distinctive sorts of incidents not recorded in the appraisal frame in a cash related year, can’t be showed up for exemption in ensuing years with the true objective of cost figuring. So it’s best to record returns reliably, in light of the fact that nobody can advise when you may need to ensure a change against past adversities.

5. Archiving returns may show profitable in case of refreshed returns

If the assesse hasn’t recorded the main return, he can’t along these lines archive a reevaluated return, despite when he genuinely needs to. Under the Income Tax Act, non-recording of benefits can attract a discipline of Rs 5,000. So while reporting returns is a purposeful activity, there are times when it could hold authentic consequences for the people who don’t do all things considered, especially in case they should record a reconsidered return in future.

For further information and help related to file ITR feel free to get in touch with Trutax.in

For any inquiry call us +91 98 91 200793 or email us care@trutax.in

Things you should know about New ITR Forms.

ITR FormsNew ITR Forms for AY 2018-2019

As per the new ITR forms, the existing some forms schedules have been changed/modified with new schedules which have been introduced.

The new form shifts the onus on the taxpayers to prove their claim for deductions, expenses or any exemptions. These forms seeks more information from taxpayers, trusts who have opted for presumptive taxation scheme, investors in shares of unlisted companies which goes on so forth.

The new key changes are combined in 28 new modifications compared to the last year. The top changes which would impact an individual taxpayer as below.

  1. ITR – 1 is the simplest form of income tax return filed by an individual who earns income from pension or salary/ from house property and from other sources. Further adding annual taxable income of the taxpayer individual with a limit of Rs. 50 laks and his total income calculated should not include from betting or gambling or any unwanted resources applicable as per law of new ITR -1 Filing.

It also requires a detailed calculation of income from salary and from house property which was restricted to single figure from last year.

  1. If a taxpayer opts for presumptive taxation scheme under section 44AD, 44ADA or 44AE, he will have to file the return for ITR -4. As the old ITR -4 was only for financial particulars of the business a) Total debtors, b) Total Creditors, c) Total stock-in-trade and d) cash balance. And the new ITR 4 form seeks 14 details of financial particulars of business such as unsecured loans/amount, advances, fixed assests, capital account etc.

 

  1. The new form has been withdrawn for a non – resident with ITR 1 particularly. Hence a non resident will have to choose either ITR – 2 or ITR – 3 to file his return of income for the assessment year 2018-2019.

 

  1. The incipient ITR 4 requires a taxpayer to provide the aggregate turnover reported by him in GST Returns. This supplemental information has been sought to culminate the erroneous practice of reporting different turnovers in erstwhile sales tax return and income-tax return. If any difference is found in turnover reported in GST return and ITR, presumptive taxpayers can expect a notice from the Dept. to explicate the mismatch in turnover.

 

  1. The incipient ITR Forms introduce concrete columns to report each capital gain exemption discretely. Details of each capital gains exemption under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F shall be reported in its applicable column now. Further, a taxpayer availing of these capital gains exemptions is required to mention the date of transfer of pristine capital asset which was missing in earlier ITR Forms.

 

  1. In the case of capital gain arising on transfer of unquoted shares, it would now be compulsory for the investors to obtain the valuation report. To ascertain that investors correctly report the capital gains from unlisted shares, the incipient ITR Forms require the taxpayer to provide figures of genuine sales consideration and FMV as resolute by a Merchant Banker or CA.

 

  1. Until last year, if a taxpayer failed to file the ITR afore terminus of assessment year, penalty under Section 271F could be imposed by the Assessing Officer only after initiating the penalty proceedings. After omission of this penalty provision by the Finance Act, 2017, tardy fees is levied under Section 234F if taxpayer does not furnish the ITR in time. The taxpayer shall now be required to pay tardy filing fees under section 234F along with interest under section 234A, 234B and 234C afore filing the ITR.

 

  1. For the Assessment Year 2018-19, an individual or an HUF, who is a partner in a firm, shall be required to file his ITR in Form ITR 3 only. Last year the partners were required to file return in ITR 2.

 

  1. After enactment of GST Act, the incipient ITR forms have introduced incipient columns to report CGST, SGST, IGST and UTGST paid by, or restituted to, assessee during the Financial Year.

 

  1. Individual taxpayers who are filing income-tax return in Form ITR 2 or ITR 3 or ITR 4 aren’t required to mention the gender, i.e., male or female or transgender, as the column of gender has been abstracted.

For further information and help related to ITR forms feel free to get in touch with Trutax.in

For any inquiry call us +91 98 91 200793 or email us care@trutax.in

Do you know, the deadline for filing ITR has been extended to Aug 31st, 2018?

filing ITR

Every pending tax payer has a relief and has the last opportunity to come to the path of rectitude. The majority of the taxpayers which includes the salaried and small-scale business holders that form the major chunk of the middle-class holders confront 31 July as the last date for filing their income tax returns. Therefore it’s now a relaxation of by extended full calendar month is a huge relief and come as a final opportunity. Below the rates for return filing.

The due date to file the ITR under this section is for individuals and Hindu Undivided Family (HUF). For assesses whose books of accounts are required to be audited, the due date to file ITR is 30 September. In the case where the transfer pricing report has to be submitted, the due date is 30 November.

It may be noted that keeping in view the woes of taxpayers, the direct tax committee of the Institute of Chartered Accountants of India (ICAI) had recently urged the CBDT to extend the ITR filing due date from 31 July to 31 August, at least. Citing genuine hardships and practical difficulties of filing ITR, the institute in a letter had requested the tax department to consider the extension.

Don’t worry – Get help, from TruTax for filing your Income Tax Return (ITR).

TruTax offering plan for GST returns filing (Rs. 6000 yearly plan).

For accounting separate

ITR filing (Rs. 5000 per year per Company without Tax Audit),

ROC returns (Rs. 2500 per year per Company having paid up Capital less than 10 lakh)

And finally for companies having paid up Capital above 10 lakhs then the cost is Rs. 5000 per Company for each year.

“Grab this opportunity of extended due date for filing ITR, before you miss it.

As the Modi government must have reckoned with the political consequences of slapping a penalty (euphemistically called fee) of Rs 5,000 even for a single day’s delay and come to the sobering conclusion that middle class’ goodwill is more important in the year. Get relief and save late fee penalty and file your ITR today!

In the event, the due date under section 139(1) stands extended to 31st, August 2018.

Note: Last submission day is before Aug 31st 2018. (*Hurry up, 10 Days left).

For further information and help related to filing ITR feel free to get in touch with Trutax.in

For any inquiry call us +91 98 91 200793 or email us care@trutax.in

Extension of filling date and fine for late filing

Extension of filling date and fine for late filing

What is ITR?

Any Indian Resident Individual or Hindu Undivided Family whose income, in whole or in part, is either earned through a Business or Profession. Income Tax Return is the form in when assessee files information about his income and tax accordance to Income Tax Department.

According to Income Tax Act 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year.

There are various forms like ITR1, ITR2, ITR3, ITR4, ITR5, ITR6 and ITR7. If its a belated file return you are not allowed to carry forward certain losses.

Every Income Tax Return Form is applicable to a certain section of the Assessees. These returns should be filed before the specified due dates. There are a lot of people out there who think filing income tax returns is not mandatory and cut it off their to-do list as they find it unnecessary and time-consuming. However, it is very important for you to file your taxes. Filing your taxes is just not a statutory duty but it is one of those moral and social duties that every citizen of a country should take care of rather as a responsibility.

What are the Different Types of ITR Forms?

While there are up to nine types of income return forms that a taxpayer could use to file his returns, only the following forms are to be taken into consideration by individuals when filing returns as per the Central Board of Direct Taxes.

ITR-1

ITR-2

ITR-2A

ITR-3

ITR-4

ITR-4S

The following income tax return forms are only applicable to companies and firms:

ITR-5

ITR-6

ITR-7

Updates: ITR filing for AY 2018-2019 has been extended from 31 July to 31 August 2018.CBDT has extended the due date for ITR Filing, considering practical difficulties and genuine hardships.

The new due date for filing the income tax return ITR for AY2018-19 is 31st of August 2018. This move has been taken for individuals for whom the due date is decided under clause (c) of Explanation 2 of Section 139(1).It may be noted that keeping in view the woes of taxpayers, the direct tax committee of the Institute of Chartered Accountants of India (ICAI) had recently urged the CBDT to extend the ITR filing due date from 31 July to 31 August, at least. Citing genuine hardships and practical difficulties of filing ITR, the institute in a letter had requested the tax department to consider the extension.

Also note, The Finance Act 2018 has introduced Section 234F to charge a fee of Rs 5,000 to Rs 10,000 for late filing of the return. If a person files the return after the due date and before 31st December, the fee of Rs 5,000 is required to be paid. For assessees filing the return after 31st December, the fee of Rs 10,000 is levied. Keeping this in view, “extension of the due date by one month is a welcome move as it will make the lives of taxpayers a little less stressful,” tax experts say.

For further information and help related to late filing feel free to get in touch with Trutax.in

For any inquiry call us +91 98 91 200793 or email us care@trutax.in

Major changes introduced in ITR 2 for AY 2018-19

ITR 2

Why there are different forms?

Our Income Tax Dept. has categorized the taxpayers on the basis of their income, their source of income and also there are many other factors to ensure smooth running process. Therefore, taxpayers having different types of income have to fill different ITR forms.

For example, the Form known as ITR-2 is for an individual/persons who do not earn from an independent profession or business.

Which of the taxpayers/individual is eligible to file ITR 2?

As stated by our government of India, ITR Form 2 is for theindividuals receiving income other than the income from profits/gains from thebusiness or any profession. Main points to note if you are filing ITR-2 have to go:

Your income should be from Salary/Pension, Income from House Property (can be from more than one), income from Capital Gains/loss on sale of investments or any property of their own, Income from Other Sources (including wins from alottery, betting and legal sources of gambling), foreign assets.

Major changes introduced in ITR 2 for AY 2018-19

  • ITR-2 is now applicable for the RNORs and the non-residents.
  • ITR-2 has now been playing a major role because now it is for individuals and Hindu undivided family having income other than income under their business or their profession
  • The field of “Profits and Gains from Business or Profession” which was earlier featuring under Part B – TI has now been removed.
  • Income from a firm part of the statement have been removed. This means that anyone earning income from their partnership firm, has to file ITR-3 now.
  • In ITR-2, under the Schedule on TDS, there is an additional field for furnishing details of TDS made on rent. And mentioning the PAN of the tenants is important.

Where you can file your ITR form?

You can file your ITR 2 form either offline to the income tax department office or online at their official website.

For further information and help related to ITR 2 form feel free to get in touch with Trutax.in

For any inquiry call us +91 98 91 200793 or email us care@trutax.in

 

Mistakes while filing ITR

What do you mean by income tax?

Income tax is a tax levied and collected by the Central Government on income of a person which is calculated at specified rates on the total income of a person and paid directly to the Central Government.

And,

An income tax return is a form or document where the citizens declare their taxable income, deductions as per norms, and tax payments. The undergoing whole process is termed as ITR Filing.


filing ITR

What are the basic and most common mistakes people make while filing ITR?

  • Mistakes in filling basic details – People generally make mistakes while writing their name, PAN card details, their associated bank account numbers, respective address or their basic details which results in rejection of their returns or delays.
  • Filing using incorrect forms – Almost every time there are made some changes to the respective forms. So, people file ITR using wrong forms which are then resulted as defective.
  • Not filing/Forgot to file ITR returns – People generally forgets or are in doubt to file their returns. But, do remember if your total gross income is up to Rs. 2.5 lakhs, then you have to file an ITR return.
  • Forgets to report all interest incomes – People must report/write all the interest incomes he/she is received for the year which can include all the saving bank account, his/her fixed deposits and other recurring deposits, etc.
  • Fails to combine the incomes – People generally fail to combine incomes of his family including his own, his wife, his children and combining that income to his income which then gets the total taxable income.
  • Failing to report income from his previous job – Job change is quite frequent these days. And people also quite often fails to report the income earned through previous job along with his present job, then occurs a discrepancy on TDS.
  • Not reporting incomes even it is tax free – It is your duty to report every income you have even if it is earned through your provident funds or your tax free bonds in a single year.
  • Failing to report all bank accounts – Every year, it is required for the person to report every single bank account to be reported in the forms. Failing to which, these should be charged as defective.
  • Not declaring any type of rent – If you have any other property/house apart from the one in which you are living, then you should report the expected rent in your total income area of the form.

For further information and help related to filing ITR feel free to get in touch with Trutax.in

For any inquiry call us +91 98 91 200793 or email us care@trutax.in

What is ITR-1 and how do I file my ITR-1 Form?

ITR-1What is ITR form?

Income Tax Return Forms are the prescribed formats in which a taxpayer has to provide the information about his income, source of such income and income-tax paid or payable to the Income-tax Department.

What is ITR-1?

ITR-1 Form is a simplified one page form for individuals having income up to Rs 50 lakhs from the following sources:

  • Income from Salary/Pension
  • Income from One House Property (excluding cases where loss is brought forward from previous years)
  • Income from Other Sources (excluding winning from Lottery and Income from Race Horses).

How do I file my ITR-1 Form?

You can submit your ITR-1 Form either online or offline.

Offline:

For offline, the return is furnished in a physical paper form.The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.

Online/Electronically:

  • By transmitting the data electronically and then submitting the verification of the return in the form of ITR-V to CPC, Bengaluru.
  • By filing the return online and e-verifying the ITR-V through net banking/aadhar OTP/EVC.

If you submit your ITR-1 Form electronically, the acknowledgment will be sent to your registered email id. You can also download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing. Alternatively, you can e-verify your return.

The Major Changes which are made in the ITR 1 for the AY 2018-19 are:

  • Earlier ITR-1 was applicable for both Residents, Residents Not ordinarily resident (RNOR) and also Non-residents. Now in AY 2018-19, this form has been made applicable only for resident individuals.
  • The condition of the individual having income from salaries, one house property, and other income and having total income up to Rs 50 lakhs
  • There is a requirement to furnish a break-up of salary. Until now, these details would appear only in Form 16 and the requirement to disclose them in the return had never arisen.
  • There is also a requirement to furnish a break up of Income under House Property which was earlier mandatory only for ITR -2 and other forms.
  • Apart from these, your Aadhar number and disclosure of all Bank Accounts is mandatory.

For further information and help related to ITR-1 feel free to get in touch with Trutax.in

For any inquiry call us +91 98 91 200793 or email us care@trutax.in

What is ITR how to file ITR 2018?

The government has made several changes in the way Income Tax returns are filed. Apart from making Aadhaar mandatory to file itr 2018, the government has also introduced different itr Forms.

There are up to nine types of income return forms that a taxpayer could use to file his returns, only the following forms are to be taken into consideration by individuals when filing returns,

  • ITR-1
  • ITR-2
  • ITR-2A
  • ITR-3
  • ITR-4
  • ITR-4S

The following income tax return forms are only applicable to companies and firms:

  • ITR-5
  • ITR-6
  • ITR-7

file ITR

ITR-1:

This income tax return form is also called a Sahaj form. The ITR-1 form is to be filed solely by an individual taxpayer. Any other assesses liable to pay tax will not be eligible to avail of this form for the purpose of filing their returns. This form is applicable for the following:

  • Individuals who earn income through salary or through means such as pension
  • Individuals who earn income from a single housing property
  • Individuals who have no income from any other business or who have no income from the sale of any assets i.e.: capital gains
  • Individuals who do not own any assets or property in countries other than India
  • Individuals who do not earn income from any country outside India
  • Individuals whose income from agriculture is below Rs 5,000
  • Individuals who earn income from various investments or sources such as Fixed Deposits, Investments, Shares etc
  • Individuals who have not earned income from any windfall such as lotteries or horse racing
  • Individuals who wish to club the income of their spouse or underage child with their own income, so long as the income to be clubbed is in accordance with the criteria mentioned above

 

The ITR – 1 form is divided into these parts:

* Part A has general information
* Part B has gross total income
* Part C shows deductions and taxable total income
* Part D shows computation of tax payable
* Part E includes all other information
* Schedule IT provides detail of advance tax and self-assessment tax payments
* Schedule TDS provides detail of TDS/TCS

 

For further information and help related to file ITR feel free to get in touch with Trutax.in Our Help line number +91 9891200793 available for small business and start up to grow their business rapidly. For any inquiry call us +91 9891200793 or email us care@trutax.in

How to reduce Taxation and Financial Planning

Taxation and Financial Planning

Taxation and Financial Planning: We know that knowing the tax ramifications of any investment is essential to developing a complete plan for our life.  Without the intimate knowledge of taxation in relation to wealth, it is like running a marathon without shoes.

You may anticipate significant changes in income or expenses based on a change of job or career, or a change of life stage or lifestyle. Not only may the amounts of income or expenses change, but the kinds of incomes or expenses may change as well. Taxation and Financial Planning for those changes in relation to tax obligations is part of personal financial planning.

Obligations change more broadly as your stage of life changes. Although everyone is different, there is a typical pattern to aging, earning, and taxes-

In young adulthood, you rely on income from wages, and you usually have yet to acquire an asset base, so you have little income from interest, dividends, or capital gains. Your family structure does not include dependents, so you have few deductions but also low taxable income.

As you progress in your career, you can expect wages, expenses, and dependents to increase. You are building an asset base by buying a home, possibly saving for your children’s education, or saving for retirement. Because those are the kinds of assets encouraged by the government, they not only build wealth but also create tax advantages—the mortgage interest deduction, retirement, or education savings exemption.

Generally, you can expect your income to increase during your middle adult life, but that is when many people typically have dependents and deductions such as mortgage interest and job-related expenses to offset increased tax obligations. As you age, and especially when you retire, you can expect less income and also fewer deductions: any kids have left home, the mortgage in paid off.

The bigger picture is that at the stages of your life when income is increasing, so are your deductions and exemptions, which tend to decrease as your income decreases. Although your incomes change over your lifetime, you tax obligations change proportionally, so they remain relative to your ability to pay.

The tax consequences of such changes should be anticipated and considered as you evaluate choices for financial strategies. Because the tax code is a matter of law it does change, but because it is also a matter of politics, it changes slowly and only after much public discussion. You can usually be aware of any tax code changes far enough in advance to incorporate them into your Taxation and Financial Planning.

There are two types of taxes in India –

  1. Direct Tax: A direct tax is a tax you pay on your income directly to the government.
  2. Indirect Tax: Indirect tax is a tax that restaurants, theatres and e-commerce websites charge you on for goods or a service. This tax is, in turn, passed down to the government. Indirect taxes take many forms: service tax on restaurant bills and movie tickets, value added tax or VAT on goods such as clothes and electronics.
    Goods and services tax, which has recently been introduced, is a unified tax that has replaced all the indirect taxes that business owners have to deal with.

The Income Tax Department breaks down income into five heads:

S. No  Type of Income  Income covered
1  Income from Salary  income from salary and pension
2  Income from Other Sources  Income from savings bank account interest, fixed deposits, winning Tottery
3  Income from House Property mostly rental income from your house
4  Income from Capital Gains  Income from sale of a capital asset such as mutual funds, shares, house property
5  Income from Business and Profession When you are self-employed, work as a freelancer or contractor or you run a business. Life insurance agents, chartered accountants, doctors and lawyers who have their own practice, tuition teachers etc.

 

 

 

 

 

Tax Slabs

How much tax you should pay depends upon the tax slab applicable to your income. Income tax is calculated on the basis of these tax slabs.

taxpayers under 60 years of age in FY 2018-2019 and FY 2017-2018-

 

Income Slab Tax Rate
Up to Rs.2,50,000 No Tax
Rs.2,50,000 – Rs.5,00,000 5%
Rs.5,00,000 – Rs.10,00,000 20%
Rs.10,00,000 and beyond 30%

 

Income tax calculation:

Income from salary = Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance.

Some components of your salary are exempt from tax, such as,

Medical reimbursements

Telephone bills reimbursement.

If you receive HRA and live on rent, you can claim exemption on HRA.

Transport allowance is given to employees as part of their salary to meet travel expenses from residence to work & back. Starting financial year 2015-16, limit of exemption on transport allowance is 1,600 per month or Rs 19,200 per annum.

For further information and help related to Taxation and Financial Planning feel free to get in touch with Trutax.in Our Help line number +91 9891200793 available for small business and startup to grow their business rapidly.

 

What is Form-16 and how to upload it on the e-filing website?

 

form16

Form-16: Form-16 is a form which is used as a certificate from the employer which validates that the Tax is deducted from the salary and it is submitted to higher authorities. It contains the valid information which is necessary to file your ITR. Form 16 is issued in once a year before 15th June of the immediately following financial year of your tax deducted. Form-16 is divided into two parts which are Part A and Part B. If you lost your form-16 by mistake then you can get another copy of it from your employer who has issued you the form. Both parts include the following information:

Part A: Part A contains the following information:

  1. Full Name and Address of the Employer
  2. TAN and PAN Number of Employer
  3. PAN of the Employee
  4. Summary of tax deducted and deposited quarterly, which is certified by the Employer

Part B: Part B contains the following information:

  1. The detailed breakup of the salary of the employee.
  2. Deductions allowed under the income tax act (under chapter VIA)
  3. Relief under section 89

There are few details required from Form-16 while filing your return. These details are as given below:

  • Taxable Salary of employee
  • The breakup of Section 80C Deductions
  • The aggregate of Section 80C Deductions
  • TDS (Tax Deducted at Source)
  • Tax Payable or Refund Due
  • TAN Number of Employer
  • PAN Number of Employer
  • Name and Address of Employer
  • Current Assessment Year
  • Your (Taxpayer’s) Name and Address
  • Your PAN Number

Upload Form 16 Online: You can upload your Form 16 online it’s very easy simply visit to Online ITR filing website and upload a copy of your Form 16 in the form of PDF or Doc. No need to add anything manually. Just log in to Online ITR filing website and upload it, all the information will be fetched automatically.

For any inquiry call us +91 98 91 200793 or email us care@trutax.in