Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income

A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income.

"Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation."

Press Information Bureau
Government of India
Ministry of Finance

01-February-2017 14:11 IST

Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.

Finance Minister appeals to all citizens to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in this slab.

A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income

The Union Finance Minister Shri Arun Jaitley reduced the rate of taxation from existing 10 per cent to 5 per cent for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50 per cent of their existing liability.

While presenting the General Budget 2017-18 in the Parliament today, the Union Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. The Finance Minister further said that if a nominal rate of taxation is kept for lower slab, many more people will prefer to come within the tax net. The Finance Minister made an appeal to all the citizens of India to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs.

The Union Finance Minister Shri Jaitley said that the Government is trying to bring within tax-net more people who are evading taxes. So, in order to expand tax net, it is decided to have a simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto Rs 5 lakhs other than business income. Also, a person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the Department regarding his high value transaction.

In his Budget Speech, the Finance Minister further said that in order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500, available only to assessees upto income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income upto Rs 3 lakhs per annum. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs. While the taxation liability of people with income upto Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The total amount of tax foregone on account of this measure is Rs 15,500 crore.

In order to make good some of this revenue loss on account of this relief, a surcharge of 10 per cent of tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore has been proposed. This is likely to give additional revenue of Rs 2,700 crore.

The Finance Minister said that the direct tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobilisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore.

PIB

Finance Minister Jaitley to meet officials again to keep Income Tax Return forms simple

FM Jaitley to meet officials again to keep Income Tax Return forms simple

Finance Minister Arun Jaitley

New Delhi: Facing criticism over the new Income Tax Return (ITR) forms that seek details on bank accounts and foreign trips, Finance Minister Arun Jaitley will hold another round of meeting with officials to simplify the procedure.

Soon after his trip from Washington yesterday, Jaitley had held a meeting with tax officials on the new ITR forms that have evoked sharp reactions from experts and others alike.

“The Finance Minister will be taking another meeting to finalise changes in the new forms,” said a source.
The Central Board of Direct Taxes (CBDT), the apex policy-making body of the Income Tax department, had notified the forms for the current assessment year, seeking additional details to check the menace of black money.

As it stands, the new ITR forms, including the ITR-1 and ITR-2, require an assessee to furnish the number of bank accounts held by the individual “at any time (including opened/closed) during the previous year” with the last balance in the account as on March 31 of the just-concluded fiscal.

The assessee will also have to furnish the name of the bank, account number, address, IFSC code and any possible joint account holder’s name.

On Saturday, Revenue Secretary Shaktikanta Das had said the government will reconsider the new ITR forms to make it simple. Jaitley had called him up from Washington, asking him not to proceed further on the matter.

Experts and consultants have criticised the new forms, saying the government was seeking too much of data. They felt that the addition of new information would make the process of filing returns difficult.

PTI

Ex-post facto extension of due date extended to 31.03.2014 for filing TDS/TCS statements for FYs 2012-13 and 2013-14

Ex-post facto extension of due date extended to 31.03.2014 for filing TDS/TCS statements for FYs 2012-13 and 2013-14

Circular No. 07/2014

F. No. 275/27/2013-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, the 4th March, 2014

All Chief Commissioners of Income-tax
All Directors General of Income-tax

Sub: Ex-post facto extension of due date for filing TDS/TCS statements for FYs 2012-13 and 2013-14 – regarding


The Central Board of Direct Taxes (‘the Board’) has received several petitions from deductors/collectors, being an office of the Government (‘Government deductors’), regarding delay in filing of TDS/TCS statements due to late furnishing of the Book Identification Number (BIN) by the Principal Accounts Officers (PAO) / District Treasury Office (DTO) / Cheque Drawing and Disbursing Office (CDDO). This has resulted in consequential levy of fees under section 234E of the Income-Tax Act, 1961( ‘the Act’).

2. The matter has been examined. In case of Government deductors, if TDS/TCS is paid without production of challan, TDS/TCS quarterly statement is to be filed after obtaining the BIN from the PAOs / DTOs / CDDOs who are required to file Form 24G (TDS/TCS Book Adjustment Statement) and intimate the BIN generated to each of the Government deductors in respect of whom the sum deducted has been credited. The mandatory quoting of BIN in the TDS/TCS statements, in the case of Government deductors was applicable from 01-04-2010. However, the allotment of Accounts Officers Identification Numbers (AIN) to the PAOs/ DTOs/CDDOs (a pre-requisite for filing Form 24G and generation of BIN) was completed in F.Y. 2012-13. This has resulted in delay in filing of TDS/TCS statements by a large number of Government deductors.


3. In exercise of the powers conferred under section 119 of the Act, the Board has decided to, ex-post facto, extend the due date of filing of the TDS/TCS statement prescribed under subsection (3) of section 200 /proviso to sub-section (3) of section 206C of the Act read with rule 31A/31AA of the Income-tax Rules, 1962. The due date is hereby extended to 31.03.2014 for a Government deductor and mapped to a valid AIN for -

(i) FY 2012-13 - 2nd to 4th Quarter
(ii) FY 2013-14 - 1st to 3rd Quarter

4. However, any fee under section 234E of the Act already paid by a Government deductor shall not be refunded.

5. Timely filing of TDS/TCS statements is essential to ensure timely reconciliation of Government accounts and for providing tax credit to the assessees while processing their Income-tax Returns. Therefore, it is clarified that the above extension is a one time exception in view of the special circumstances referred to above. Since the Government deductor and the associated PAO/ DTO/ CDDO belong to the same administrative setup that regulates the clearance of expenditure, the deductors/collectors may be advised to co-ordinate with the respective PAO/DTO/CDDO to ensure timely receipt of BIN/filing of TDS/TCS statements.

6. This circular may be brought to the notice of all officers for compliance.

7. Hindi version shall follow.

sd/-
(Sandeep Singh)
Under Secretary to Government of India

Source: http://law.incometaxindia.gov.in/DIT/Circulars.aspx
(http://law.incometaxindia.gov.in/DIT/Circulars.aspx)

Ready Reckoner for late IT Return filling

Ready Reckoner for late IT Return filling

A Ready Reckoner for Late Income Tax Return filing:

Important tax return filing dates for the Assessment Year 2013-14 (Financial Year 2012-13)

• July 31: Due date for filing tax returns
• August 5: Extended due date
• March 31, 2014: Last date for filing returns without the penalty of Rs. 5000.  However penal interest of 1% per month of delay will be levied on taxes due, if any.
• March 31, 2015: Last date for filing with penalty of upto Rs.5,000

If you have missed the August 5 deadline for filing tax returns, you can still do so.  However, bear following implications in mind:

• If you owe any taxes at the time of filing return, you will be charged a panel interest of 1% for every month of delay;
• While tax return for the financial year 2012-13 can be filed up to March 31, 2015, you will have to pay a penalty of upto Rs.5,000 if it is filed after March 31, 2014.
• You will not be able to file a revised return in case you have committed mistake while filing the original one.
• You will not be allowed to carry forward any losses incurred under the head Capital Gains and 'Business Losses' (other than depreciation loss).
• If you are entitled to interest on tax refund, if any, you may have to forgo the interest for the period of delay.

Source: http://karnmk.blogspot.in/2013/08/ready-reckoner-for-late-income-tax.html