Tag Archives: STPI

HSN codes for GST

HSN code number means Harmonized System Nomenclature code number. The term HSN number is widely used for taxation purpose in many countries including India. The following links help you to find HSN code number for your commodity for GST documentation like preparation of GST Tax Invoice, computation of GST etc. However, you may reconfirm the correctness of such HSN code mentioned in this website with GST authorities in India.

HSN (Harmonised System of Nomenclature) is an internationally accepted product coding system formulated under General Agreement on Tariffs and Trade (GATT).

In India, currently, adapted HSN coding is currently used under Excise and Customs for classification of products. It is necessary to determine correct applicable rate (including exemptions, if any).

Under GST, government shall continue the concept of classification based on HSN but a slightly modified version will be implemented wherein turnover of the taxpayers will play a pivotal role in determine coding. However, there will be separate codes for goods and services.

Broad rule is as under:
– Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5 crores shall use 2 digit code;
– Taxpayers whose turnover is Rs. 5 crores and above shall use 4 digit code;and
– Taxpayers whose turnover is below Rs. 1.5 crores are not required to mention HSN Code in their invoices.

Services will be required to be classified per the Services Accounting Code (SAC).

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

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How to Replace Your Existing PAN Card with Tamper-proof PAN Card

Income Tax (I-T) department has started issuing new tamper proof PAN cards with more security features. The distribution fo the tamper proof PAN cards has already started from January 1, 2017 by NSDL and UTIITSL (UTI Infrastructure Technology and Services Ltd)
pan card
New applicants who filed an application after January 1 will receive the tamper proof PAN card.

All existing PAN card holders who wish to receive this tamper proof PAN card can fill new application. Before letting know the process of obtaining a replacement of existing PAN card with tamper proof PAN card, we will let you know what are the new features added in the new PAN card.

Features of tamper proof PAN card

– Error-free which is made possible by automation
– A new feature called Quick response code: the code will provide details of the cardholder in one go
– Contents on PAN card written both in English and Hindi
– Tamper proof
How to Replace existing PAN card with Tamper-proof PAN card
In order to obtain the new tamper proof PAN card, you must submit a new application on form 49A at your local IT PAN Service Center or you can fill it online here
You need to indicate your existing PAN on the form and surrender your old PAN card. The cost for this is Rs. 94/-.
UTIITSL will ensure delivery of your PAN card by mail at the address indicated by you in form 49A.

PAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.

The primary objective of PAN is to use a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by change of address throughout India.

WHO MUST APPLY FOR PAN?

  • Anybody who earns a taxable income in India, including foreign nationals who pay taxes here
  • Anybody who runs a business (be it retail, services or consultancy) that had total sales, turnover or gross receipt exceeding Rs 5 lakh in the previous financial year

HOW TO APPLY?

  • Use ‘Form 49A’ or ‘Form 49AA’ as applicable to you. Find more details at incometaxindia.gov.in.
  • You can find the location of PAN card offices in any city from the websites of the Income Tax Department or National Securities Depository Limited (NSDL).
  • You will need copies of proof of Identity and address.
  • Payment can be made using cash, cheque or demand draft.
  • You can also apply online through websites of the I-T Department or NSDL.
  • If you are applying online, the processing fee can be paid via net banking, credit card or debit card.
  • Track the status of your application online.

Uses and Importance of PAN Card

Whether you’re looking at buying a car or property, investing in the stock market or converting your Indian rupees to foreign currency, there is one thing that you will need for each of these activities. What could possibly link these, you might ask. The answer is the PAN card. The Permanent Account Number (PAN) card, issued by the Income tax Department, is one of the most important documents nowadays.

The card was issued in order to prevent tax evasion by individuals and entities as it links all financial transactions made by a particular individual or entity. In this way, the Income Tax Department has a detailed record of all major transactions for tax purposes.

Indian citizens who are residents of the country as well as NRI (Non Resident Indians), OCI (Overseas Citizen of India) cardholders, PIO’s (Person of Indian Origin) as well as foreigners who come under the purview of the Income Tax Act of 1961 are eligible to apply for a PAN card. Firms and companies, governments and minors too can apply for a PAN card.

However, the PAN card also has many other uses besides just being a way for the Income Tax department to keep tabs on your financial dealings.

The Uses of PAN Card are given below:

IT Returns Filing: All individuals and entities who are eligible for Income tax are expected to file their IT returns. A PAN card is necessary for filing of IT returns, and is the primary reason individuals as well as other entities apply for one.

Opening a bank account: A PAN card is required in order to open a new bank account, whether it is a savings or a current account. All banks, whether public, private or co-operative, require the submission of a PAN card in order to open an account with them.

Buying or selling a motor vehicle: If you wish to buy or sell a motor vehicle worth more than Rs. 5, 00, 000, you have to provide your PAN Card details when conducting the transaction.

Applying for a credit or debit card: When applying for either a debit card or a credit card at any bank or financial institution, furnishing your PAN card details is mandated by regulations. The bank will not issue the card if this criteria is not met.

Purchase of jewellery: If you are looking at buying any sort of jewellery that is valued at over Rs. 5, 00, 000, you will have to provide your PAN card details at the time of purchase.

Making investments: Investing in securities is seen as a good way to build your wealth. If you are considering investing in securities, you would have to furnish your PAN details for any transactions amounting to above Rs. 50, 000. This extends to equities, mutual funds, bonds as well as debentures.

Proof of Identity: a PAN card is accepted as valid proof of identity anywhere in the country, and is also considered as proof of age. It can also be used as proof of identity when making an application for a passport, voter ID card, driving licence, electricity connection etc.

Foreign Exchange: If you are travelling abroad and wish to convert your Indian currency into foreign currency, you are required to provide details of your PAN at the money exchange bureau/bank/institution where you are converting the money.

Property: Buying, selling or renting property in India now requires PAN card proof. In the case of buying of property, the PAN details of the buyer as well as the seller have to be listed on the sales deed and any other such documentation for the sale to be complete.

Loans: If you require to take out a loan, all loan providers, both banks as well as other lending institutions, require you to submit details of your PAN at the time of loan application. All loans, from education loans to personal loans require PAN details for the loan to be approved.

Fixed Deposits: If you plan on investing your money in a Fixed Deposit (FD) amounting to above Rs. 50, 000 in a bank, you will have to provide your PAN details. This is done as the bank will deduct TDS (Tax Deductible at Source) on the FD interest amount.

Cash Deposits: If you are making a cash deposit that amounts to over Rs. 50, 000 at a time, you will have to submit your PAN details as well. This is in keeping with the RBI mandate, which directs banks to report any large cash deposits to the RBI, as a way to prevent money laundering.

Telephone Connections: If you wish to get a new telephone or mobile phone connection, it is mandatory to submit your PAN details, as private cellular operators will not provide you a connection without it.

Insurance Payments: As per the Income Tax Department directives, PAN card details have to be furnished when making an insurance payment exceeding Rs. 50, 000 a year.

From the above, we see that a PAN card is required for a large number of activities, both financial as well as non-financial.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

All About Income Tax Returns

It’s the season of taxes and most individuals are running from pillar to post to figure out how to do things right! Well, if you are planning to file your tax returns for the very first time, and are looking for information on the same your search ends here as we have a comprehensive guide that will tell you all you need to know about filing income tax returns.

Who needs to file income tax returns?

Normally there is a lot of confusion about who needs to file returns, here’s a list of people who need to file retuens:

  • If you are an individual whose gross income is ₹ 2.5 lakhs per annum and above you need to file returns. If your income exceeds ₹ 5 lakhs e-filing is mandatory.
  • If you are senior citizen aged between 60-80, you need to file returns if your gross income is ₹ 3 lakhs and above
  • If you are a super senior citizen above the age of 80 you need to file returns only if your gross income exceeds ₹ 5 lakhs.

What’s the last date to submit returns?

The last date to file returns for the financial year 2015-16 is July 31st 2016.To avoid a last minute rush job, it is highly recommended that you finish the process earlier. If you have taxable income in 2015-16, this year is referred to as the financial year and the year in which you file income tax returns for the same is referred to as the assessment year.

Documents you will need

  • Form 16 – If you are a salaried individual, you will need this form. It is issued by your employer to certify that you have drawn a salary for the financial year and tax has been deducted at source (TDS) for the same.
  • Form 16 A – Form 16 A bears witness to any other income you have may have earned during the financial year. So you need to collect this form from your bank because it deducts TDS from your interest income. Also if you are a homeowner, do not forget to collect this form from your tenant, if he is deducting TDS on rent.
  • Other income – All income that cannot be classified under the heads of salary, capital gains, property or business and profession must be categorised as ‘Other Income’ from other sources. These are:
    1. Apart from interest income, dividend income, loans and deposits, winning from lotteries, income incurred from furniture or machinery put in rent, gambling and even any sum of ₹ 50,000 or above that has not been received as an inheritance or on the occasion of one’s marriage is also classified as other income. You therefore need to keep the document proofs of one of more of the incomes incurred from the above mentioned sources.
    2. If you have incurred income on any immoveable property or capital assets based offshore, you need to report and show income proof from the same.
    3. If your income is above ₹ 50 lakhs you are also required to provide details of your other assets such as jewellery, cash and land or property, so ensure that you have details of the same handy.
    4. Finally, if you have a home loan or a student loan, keep your loan documents and bank statements handy as deductions will apply to your case.
  • Form 26AS – This is the statement of your tax credit that shows that all your tax has been received on time by the Income Tax Department.Details of your tax deductions as well as high value transactions are recorded in this form. You must check this form for errors before you begin filing income tax returns for the year. In case of any error, corrective action must be taken immediately.

As per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax returns (ITR).

INCOME TAX RETURNS

The process of electronically filing income tax returns is known as e-filing. You can either seek professional help or file your returns yourself from the comfort of your home by registering on the income tax department website or other websites. The due date for filing tax returns (physical or online), is July 31st.

Who should e-file income tax returns?

Online filing of tax returns is easy and can be done by most assessees.

  • Assessee with a total income of Rs. 5 Lakhs and above.
  • Individual/HUF resident with assets located outside India.
  • An assessee required to furnish a report of audit specified under sections 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.
  • Assessee required to give a notice under Section 11(2) (a) to the assessing officer.
  • A firm (which does not come under the provisions of section 44AB), AOP, BOI, Artificial Juridical Person, Cooperative Society and Local Authority (ITR 5).
  • An assessee required to furnish returns U/S 139 (4B) (ITR 7).
  • A resident who has signing authority in any account located outside India.
  • A person who claims relief under sections 90 or 90A or deductions under section 91.
  • All companies.

Types of e-Filing:

  • Use Digital Signature Certificate (DSC) to e-file. It is mandatory to file IT forms using Digital Signature Certificate (DSC) by a chartered accountant.
  • If you e-file without DSC, ITR V form is generated, which should then be printed, signed and submitted to CPC, Bangalore by ordinary post or speed post within 120 days from the date of e-filing.
  • You can file e-file IT returns through an E-return Intermediary (ERI) with or without DSC.

Checklist for e-Filing IT Returns

There are a few prerequisites to filing your tax returns smoothly and effectively. Major points have been highlighted below.

    • How to choose the right form to file your taxes electronically

It can be confusing deciding which form to submit when filing your tax returns online. The different categories of Income Tax Return (ITR) forms and who they are meant for are tabulated below.

ITR 1 (SAHAJ) Individuals with income from salary and interest
ITR 2 Individuals and Hindu Undivided Families (HUF) not having income from business or profession
ITR 3 Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR 4 Individuals and HUFs having income from a proprietary business or profession
ITR 4S (SUGAM) Individuals/HUF having income from presumptive business
ITR 5 Firms, AOPs,BOIs and LLP
ITR 6 Companies other than companies claiming exemption under section 11
ITR 7 Persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)
    • Check your tax credit – Form 26AS vs. Form 16

cYou should check Form 26AS before filing your returns. It shows the amount of tax deducted from your salary and deposited with the IT department by your employer. You should ensure that the tax deducted from your income as per your Form 16 matches with the figures in Form 26AS. If you file your returns without clarity on errors, you will get a notice from the IT department.

    • Claim 80G, savings certificates and other deductions

You can claim extra deductions if you forgot to claim them. Similarly, you can also claim deductions under section 80G on donations made to charitable institutions.

    • Interest statement – Interest on savings accounts and fixed deposits

A deduction for up to Rs.10,000 is allowed on interest earned on savings accounts. However, interest earned on bank deposits, if any, forms a part of your taxable income and is taxable at applicable slab rates.

In addition to the above, have the following at hand.

    • Last year’s tax returns
    • Bank statements
    • TDS (Tax Deducted at Source) certificates
    • Profit and Loss (P&L) Account Statement, Balance Sheet and Audit Reports, if applicable

Ensure your system is equipped with the below.

  • Java Runtime Environment Version 7 Update 6 or above

List of Required Documents for e-filing of tax returns

It is always good to stay a step ahead, especially when it comes to tax filing. The checklist provided below will help you to get started with the e-filing of tax returns.

General details:

  • Bank account details
  • PAN Number

Reporting salary income:

  • Rent receipts for claiming HRA
  • Form 16
  • Pay slips

Reporting House Property income:

  • Address of the house property
  • Details of the co-owners including their share in the mentioned property and PAN details
  • Certificate for home loan interest
  • Date when the construction was completed, in case under construction property was purchased
  • Name of the tenant and the rental income, in case the property is rented

Reporting capital gains:

  • Stock trading statement is required along with purchase details if there are capital gains from selling the shares
  • In case a house or property is sold, you must sought sale price, purchase price, details of registration and capital gain details
  • Details of mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs

Reporting other income:

  • The income from interest is reported. In case of interest accumulated in savings account, bank account statements are required
  • Interest income from tax saving bonds and corporate bonds must be reported
  • The income details earned from post office deposit must be reported

Recommended:

  • Form 16 in India
  • Income Tax Slabs and Rates for Assessment Year 2016-17

How do I file e-Returns?

  • Fill income tax returns offline and upload XML on the official website: IncomeTaxIndiaeFiling.gov.in
  • Prepare and submit ITR 1 online.

Steps to follow to file Income Tax Returns:

Filing your income tax returns online doesn’t have to be a complicated process. Simply follow the below steps.

First, log on to IncomeTaxIndiaeFiling.gov.in And register on the website.

  • Your Permanent Account Number (PAN) is your user ID.
  • View your tax credit statement or Form 26AS. The TDS as per your Form 16 must tally with the figures in Form 26AS.
  • Click on the income tax return forms and choose the financial year.
  • Download the ITR form applicable to you. If you’re exempt income exceeds Rs.5,000, the appropriate form will be ITR-2 (If the applicable form is ITR-1 or ITR 4S, you can complete the process on the portal itself, by using the ‘Quick e-file ITR’ link – this has been explained below).
  • Open excel utility (the downloaded return preparation software) and fill out the form by entering all details using your Form 16.
  • Check the tax payable amount by clicking the ‘calculate tax’ tab.
  • Pay tax (if applicable) and fill in the challan details.
  • Confirm all the data provided in the worksheet by clicking the ‘validate’ tab.
  • Generate an XML file and save it on your desktop.
  • Go to ‘upload return’ on the portal’s panel and upload the saved XML file.
  • A pop-up will be displayed asking you to digitally sign the file. In case you have obtained a digital signature, select ‘Yes’. If you have not got digital signature, choose ‘No’.
  • The acknowledgment form, ITR Verification (ITR-V) will be generated which can be downloaded by you.
  • Take a printout of the form ITR-V and sign it in blue ink
  • Send the form by ordinary or speed post to the Income-Tax Department-CPC , Post Bag No. 1 , Electronic City Post Office, Bangalore, 560 100, Karnataka within 120 days of filing your returns online.

Steps to file ITR 1 Online:

Prepare and Submit ITR1/ITR 4S Online

You have the option to submit ITR 1/ITR 4S forms by uploading XML or by online submission

  • Login to e- Filing application
  • Go to ‘e File’ ‘Prepare and Submit ITR Online’
  • Select the Income Tax Return Form ITR 1/ITR 4S and the assessment year.
  • Fill in the details and then click the submit button
  • After submission, acknowledgement detail is displayed.
  • Click on the link to view or generate a printout of acknowledgement/ITR V form

Private portals:You could also make use of several websites to file your income tax returns online. The portals typically charge fees (Rs. 250 to 300) depending on the kinds of service they offer.

Things to watch out for while e-filing:

  • If the same mobile number or email address is used for more than four taxpayers, you cannot file returns on the website, unless the required change is done. For instance, in some cases, more than five returns may be filed— yours, wife, mother, mother-in-law and the Hindu undivided family (HUF) of which you are the karta, the executor of a will.
  • If your name mentioned in your bank documents or official statements is even slightly different from the one given in the PAN card, the portal will consider you a different individual. In certain instances, some individuals give their father’s name as their ‘middle’ name in their PAN card, but do not use it for their bank accounts.
  • If a non-resident Indian has to file income tax returns, he will need both an India number and a foreign number.

Frequently Asked Questions: e-filing Income Tax Returns

  1. Can I file ITR online without an account on the Income Tax e-filing portal?A) No. You have to create an account on the portal to file your ITR online. It is an easy process – you have to register yourself by providing details such as user type (individual, HUF, companies, chartered accountants, agencies or tax deductors), your PAN, first and middle names and surname, date of birth, and fill in the registration form. If you already have an account but have forgotten password, you can generate it through the ‘Forgot Password’ option.
  2. How many days do I have to verify the Income Tax Return I filed online?A) You have to either send the ITR-V to CPC, Bengaluru, or verify it online through electronic verification code or Aadhaar-linked one-time password, within 120 days of e-filing the return.
  3. Can I e-verify my ITR instead of sending a hardcopy to CPC, Bengaluru?A) Yes. The Income Tax Department now allows you to e-verify ITR through an electronic verification code (EVC) or through a one-time password by linking your PAN and Aadhaar.
  4. Can I e-file my return before all my tax payments are done?A) You can only file your Income Tax Return – online or through an agency – after all your tax payments for the year are done. The deadline for filing ITR is July 31 of the year after the end of a given assessment year – that is, you get 4 months to file ITR. This helps you put your accounts in order and make sure all tax-related payments are sorted.
  5. Is it mandatory for me to do the e-filing or can I depute it to someone?A) You can seek the help of chartered accountants and agencies dedicated to ITR filing. It is wiser not to allow anyone to have your PAN and password in order to prevent any kind of fraud.

While you may feel that a large part of your income is taxable, you must know that there are several deductions you can avail according to the tax bracket that is applicable to you.

Filing one’s income tax returns is not as difficult as it is made out to be. If you carefully collate all the documents and keep them in order, you will be able to e-file your returns in a few minutes!!!

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

What is Defective Income Tax Return? How to respond to Defective Return Notice issued u/s 139(9)?

One of my friends is a very sincere guy in paying income tax every year. He is very prompt in filing his ITR within the due date. He has filed his Income Tax Return on 15th July, 2016 and has also e-verified his ITR on the same day. His EVC has been accepted on 16th July.

After filing his return, he kept on checking the status of his ITR daily. The status of his ITR remained as ‘successfully e-verified’. During last week, he had contacted me and we had a discussion on this issue.

I have asked him to login to the e-filing portal and click on ‘My Pending Actions’ under the ‘Dashboard’ menu option. We could see that there is one pending action item under this link. My friend’s income tax return has been marked as ‘Defective Return(Incomplete Income Tax Return).

The IT dept has issued Defective Return notice u/s 139(9) on 20th July, 2016 itself. This is just after 3 days of filing ITR. But my friend has missed going through the email sent by the IT dept regarding the defective return.

So, what is a Defective Return? What are the reasons under which your ITR is treated as a Defective Return? What to do if you receive defective return notice u/s 139(9)? How to respond to Defective return notice? Can the Defective Return be revised or rectified  online?…Let’s discuss..

What is a Defective Return?

Once you file your income tax return, the details provided by you in the ITR is cross-verified and processed by the IT dept. The dept compares the details provided by you with the information that is available with them. If they find any discrepancies or mistakes or any information is missing in ITR then they will treat your ITR as Defective Return. They will then issue a Defective Return notice u/s 139(9).

Reasons for receiving a Defective Return Notice

Let me explain to you about my friend’s case and then some of the possible reasons.

My friend is a professional, so he has been filing ITR-4 form for the last few years. His professional income is less than Rs 10 Lakhs and hence it is not required to audit his accounts. There is no necessity for him to provide full details of Balance sheet & p&L account in ITR.

(As per Section 44 AB if business income exceeds Rs 1 Crore (or) professional income exceeds Rs 25 Lakh then auditing of books is mandatory.

As per Section 44 AA, certain professionals who belong to professions like  Legal, medical, Engineering, Architectural, Accountancy, Technical consultancy etc have to maintain books of accounts. The other professionals are not required to maintain books of accounts if the gross receipts is less than Rs 10 Lakhs.)

The above sections are not applicable for my friend’s case. So, when filing his ITR form, ideally he should have checked ‘No’ against both these options.

ITR Section 44AA Section 44AB Books of acounts Audit Balance sheet P&L account pic

 

Unfortunately, he has checked ‘YES’. If one checks these options as YES then he/she has to provide full details in Balance Sheet and P&L sections.  My friend has ticked YES but did not provide balance sheet details in the ITR.

He has uploaded the ITR without providing the required details. Hence, his ITR has been considered as ‘Defective Return’.  (In my friend’s case, the notice has been issued with an Error Code 31. This code is related to non-furnishing of Balance Sheet / P&L statement in ITR.)

Some of the other possible reasons for receiving Defective Return notice can be as below;

  • Error Code 14 : If you provide negative amount in Gross profit or Net profit sections, ITR is treated as Defective return.
  • Error Code 8 : If you file ITR-4S, even though the total presumptive income u/s 44AD is less than 8% of Gross turnover/Gross receipt”. (In this case, the tax assessee has to file ITR-4 form instead of ITR 4S)
  • Error Code 31 : Tax Payer having income under the head “Profits and gains of Business or Profession” but not filled Balance Sheet and Profit and Loss Account. (Like in my friend’s case.)
  • Error Code 38 : Tax determined as payable in the return of income filed but has not been paid.

How to respond to Defective Return Notice issued u/s 139(9) online?

Below is the step by step procedure for responding to defective return notice and e-file your rectified ITR u/s 139(9);

  • Kindly visit e-filing portal & login with your credentials.
  • efiling portal my pending actions link pic
  • Click on ‘My Pending Actions’ link under ‘Dashboard’ menu option.
  • If your ITR has been marked as ‘Defective’ then you can see an option as ‘For your action : Details of Defective Returns – Click here.’
  • Defective Return pending for action
  • Click on the above option.
  • You can find details of your defective return issued under section 139(9). Here, you can find notice issued date, CPC Reference number, status of your notice and Response option.
  • Defective return notice under section 139 9 details submit response pic
  • Click on the ‘Response’ link.
  • Kindly go through the error code, error code description & Probable resolution to understand the reason for treating your ITR as a defective one.
  • Defective return notice error code 38 31 details resolution agree with defect
  • If you believe that the reason is valid and you agree with defect then select YES option under ‘do you agree with defect’ list box.
  • Response to defective return notice online upload revised ITR rectified itr xml file
  • You now have to correct the required details in your ITR and has to upload your new revised ITR. Kindly note that you have to select the option “In response to a notice under Section 139(9) where the original return filed was a defective return” in ITR.
  • Revised return Revised ITR Rectified ITR filing under section 139 (9) pic
  • Select your ITR form name and upload xml file. (My friend has ticked ‘NO’ option under section 44 AA & 44 AB and uploaded the revised ITR.)
  • Original return revised return under section 139 9
  • If you do not agree with the defect then you can select NO under column ‘Do you agree with defect?’ and  provide the remarks under column Assesse Remarks.
  • Disagree with defective return response no tax assessee remarks

After filing your response to defective return notice, if you wish to withdraw your response then you may do so within 3 days of submission.

Also, note that if you receive communication regarding your return being defective, you have to respond to the notice or file a revised return within 15 days of receiving such intimation.

If the mistake is not rectified within 15 days, or within the extended period, or before the assessment is made, the AO will treat the income-tax return as invalid.

If you observe that in my friend’s case, he has filed the revised return after 15 days, but before the assessment is completed. So, let’s hope that his ITR will now be processed without any further notices.

In case if the status of your filed ITR has been remaining same for many days, do check the ‘pending actions link’ in e-filing portal immediately.

I hope this post is informative and useful. If you have received defective return notice, and need help in responding to the notice.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Digital payment: 3.81 lakh consumers and 21,000 merchants win prizes worth Rs.60.90 crore at Digi-Dhan Melas

The Government’s efforts to give a boost to the digital payment systems and the cashless economy, post-demonetization have generated an enthusiastic response from the people. People from different age groups, occupations and different walks of life have taken part in a big way in the Lucky Grahak Yojana and Digi-dhan Vyapar Yojana giving a fillip to digital transactions.

More than 3.81 lakh consumers and 21,000 merchants have been declared the winners of prize money worth Rs.60.90 crore at 24 Digi-Dhan Melas across the country.   Giving the details, the Union Minister Law & Justice, Electronics and Information Technology Shri Ravi Shankar Prasad said that the Common Service Centres under the Deptt. of Electronics and Information Technology have trained 1.94 crore citizens and 5.93 lakh merchants so far for carrying out transactions through digital payment systems.

The prize money worth Rs. 60.90 crore to over 3.81 lakh winners of NITI Aayogs’s lucky draw schemes ‘Lucky Grahak Yojana, LGY’  for consumers and ‘Digi-Dhan Vyapar Yojana, DVY’ for merchants has been declared at 24 Digi-Dhan Melas across the country – daily as well as weekly.   The lucky winners include 24 year old Ashutosh Mishra, a mobile shop owner in Rampur, Odisha, 24 year old Jadhav Amit Anil from Ghatkopar, Mumbai, 27 year old Mangesh Anantrao Jadhav from Nasik, 42 year old Suman Sapra from Ulsoor, Bengaluru, Tripta Devi, a 54 year old housekeeper from Andhra Pradesh, among others.  The list includes winners from different walks of life including the small farmers, Anganwadi workers, housewives, laborers, etc.

Data analytics provided by the National Payments Corporation of India (NPCI) has highlighted a positive response among the people to adopt digital payments.  Maharashtra, Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Karnataka have emerged as the top 5 states with a maximum number of winners.  Active participation has been seen among men and women while most of the winners were in the age group of 21-30 years.

The two schemes were launched on December 25, 2016 and shall remain open until April 14, 2017.  The schemes are aimed at incentivizing the consumers and the merchants to promote digital payments.  15,000 daily winners vie for total prize money of Rs. 1.5 crore at the rate of Rs.1000 per person.  Besides, over 14,000 winners qualify for weekly draws with the total prize money of over Rs. 8.3 crores per week.

digidhan mela

Customers and merchants using RuPay Card, BHIM, UPI (Bharat Interface for Money/Unified Payment Interface) USSD based *99# service and Aadhaar enabled Payment Service (AePS) are eligible for participating in the daily and weekly lucky draws.

These lucky draws are being held at Digi-Dhan Melas across the country.  Over 100 Digi-Dhan Melas will be held across the country to inculcate digital payment among the people.  Till date, 24 Digi-Dhan Melas have been held across the country since 25th December 2016.  These include New Delhi, Gurugram, Ludhiana, Panaji, Dehradun, Lucknow, Ranchi, Raipur, Mumbai, Meerut, Haldwani, Amritsar, Pune, Patna, Vijayawada, Chandigarh, Guwahati, Kochi, Bilaspur, Bokaro, Dadra & Nagar Haveli, Bengaluru, Jammu and Hyderabad. The exercise has covered so far 12 states and 3 Union territories. By 1st February, the exercise will have covered the cities from 21 States and 4 UTs. The upcoming Digi-Dhan Melas are scheduled to be held as per the following schedule:-

Table – List of cities for Lucky Grahak Scheme draws till February 1, 2017.

1. 19th January, 2017 Madhya Pradesh Bhopal
2. 20th January, 2017 Arunachal Pradesh Itanagar
3. 21st  January, 2017 Odisha Bhubaneshwar
4. 22nd January, 2017 Maharashtra Thane
5. 23rd January, 2017 Chhattisgarh Bhilai
6. 24th January, 2017 Madhya Pradesh Indore
7. 25th January, 2017 Karnataka Mangalore
8. 26th January, 2017 Rajasthan Jaipur
9. 27th January, 2017 Andaman & Nicobar Island Port Blair
10. 28th January, 2017 Tamil Nadu Chennai
11. 29th January, 2017 Gujarat Ahmedabad
12. 30th January, 2017 Madhya Pradesh Gwalior
13. 31st January, 2017 Haryana Faridabad
14. 1st Feb, 2017 Rajasthan Alwar

Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana awards were launched in New Delhi on December 25, 2016 by Union Minister of Finance and Corporate Affairs, Arun Jaitley and Union Minister of Electronics & Information Technology and Law & Justice, Ravi Shankar Prasad to incentivize digital payments. The lucky draws have been planned at over 100 Digidhan Melas spread across the country in 100 different cities till April 14, 2017. The highlights of the Schemes are as follows-

All transactions done by consumers and merchants from November 9, 2016 till April 14, 2017 will be eligible for winning prize under the scheme.

All such transactions irrespective of the fact whether it has won daily / weekly prize, will be eligible for Mega Draw to be conducted on April 14, 2017.

Three Mega prizes for consumers worth Rs. 1 crore, Rs 50 lakh and Rs 25 lakh.

For merchants too, there would be three mega prizes worth Rs. 50 lakh, Rs. 25 lakh and Rs. 12 lakh.

The draw of winners are presented at different centers on each day by the senior officials of NPCI in the presence of senior minister from GoI, representatives of NITI Aayog and the general public.

Schemes have a total outlay of Rs. 340 crore of which – Rs. 300 crores would be spent on consumers and merchants while the remaining Rs. 40 crore on awareness and publicity.

Total winners under the scheme are expected to be over 18.75 lakh.

India’s Hottest Tech Sectors in 2016, By VC Activity – #Infographic

Now that 2016 is behind us, the time to retrospect is ripe. For governments, establishments, and you. As you set up your 2017 plans in motion, here’s a snapshot of the hottest technology sectors of 2016, basis VC investment activity — analyzed by Tracxn, a startup that tracks and analyze startup activities.

India – the third largest startup ecosystem – saw a country-wide funding of $6.51B through 468 rounds throughout the year.

Online Retail and Online Travel are the hottest technology sectors of 2016 in India. With close to $1.14 Billion invested across the 52 rounds, these two stirred maximum VC participation in 2016.

While, Online Retail — is a sector where startups/companies enable the sale of goods directly to consumers through an online-first channel, Online Travel — is a sector where startups/companies serve as online platforms that enable users with inter-city travel planning, discovery, booking, and sharing travel activities and experiences; companies providing tech solutions for travel operators and agents.

Online Lending is third in the list of hottest tech sectors, followed by Ed-Tech and Logistics Tech

Life Sciences and Energy startups are excluded in the list as the Startups with funding rounds of only over $1M have been considered for the same.

india_hottest_tech_sectors_2016

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The Entrepreneur’s Rule Book: The ROI of Commitment and Effort

Three essential attributes you need to turn your vision into a successful business

An entrepreneur’s life begins with a vision–but turning that vision into a reality is what separates mere dreamers from true entrepreneurs. Building a company from scratch requires equal parts ideation, determination and hard work. How ready, willing, and able you are to deal with such challenges will make all the difference between moving forward or falling by the wayside.

Successful business owners tend to have a combination of three essential attributes–you might call them The Entrepreneur’s Rule Book, the body of knowledge you need to help build and run a successful business:

  • Desire to start a business
  • Feelings of readiness to undertake the effort
  • Support network that can affect persistence

These attributes are among the eye-opening findings of the 2016 Global Entrepreneurship Report by Amway (AGER), one of the world’s leading direct-selling companies. AGER pulled responses from nearly 51,000 people across 45 nations regarding their opinions on entrepreneurship, entrepreneurial potential, and entrepreneurial spirit.

Each of these three factors is important in increasing entrepreneurial success. According to the Amway report, 61 percent of the US respondents had the desire to become an entrepreneur, 61 percent were prepared to start a business, and 47 percent had the stability it took to counter social pressures dissuading the venture.

It starts with a great idea

Successful entrepreneurs appreciate that building a winning business is different than just setting out to make money. Their desire to start a business needs to be rooted in providing value to the customer. However, many founders and CEOs become distracted by the nuts and bolts of the enterprise or by chasing money at the expense of quality or customer experience. They do so at their peril–customers will soon see through those efforts and choose other places to spend their money.

One impressive example of the power of customer focus is CrossFit, the branded fitness empire founded by Greg Glassman. The fitness entrepreneur never focused on profits. Rather, he continually sought ways to create better experiences for athletes. While some people were excellent runners, they lacked the strength to carry a heavy object a short distance. His clear goal was to develop multi-skilled athletes excelling at all sports, based on his concept of “physical preparedness.”

Further, prioritizing improvement is crucial, as the status quo is death for any enterprise. Keep innovating to surprise the marketplace with new products or services as compelling as your first. Listen to your customers, not just when they contact you with a service issue, but also to their comments and other musings on social media. In many ways, this information is even more important than traditional business data like sales and profits. You must constantly reinvent the organization and its value proposition. Your customers’ feedback will help tell you how to do so.

Ready, setfail!

Of course, not all of your innovations are going to work out. Entrepreneurs need to embrace failure. After all, few other experiences offer clearer insights into what went wrong and how to turn today’s defeats into tomorrow’s wins. However, fear of failure can make some entrepreneurs feel unsure about their efforts. This anxiety is captured in Amway’s survey of the impact of social pressures on a person’s confidence in launching a business, given the 53 percent of respondents that would drop their dreams of launching a business if family or friends expressed their dismay.

Failure and redemption are consistent themes within some of the world’s most successful businesses. Take Henry Ford, whose two other automotive companies tanked before he launched Ford Motor Company in 1903. Another five years would pass before he introduced automobile manufacturing to the assembly line in making the Model T. His efforts brought the first affordable car for the masses and launched the company’s immense success.

Another example of the power of failure is Steve Jobs’ extraordinary comeback at Apple. After the company’s board of directors fired him, Jobs launched NeXT Computer, which failed miserably. But he later took that company’s creation of object-oriented development tools and embedded the same technology in Apple’s first electronic AppStore, fueling the app-happy world we now live in. The moral: failures can be detours in disguise.

Even the founders of Amway had their share of failures. Richard DeVos and Jay Van Andel launched several ventures that failed, including a flight school, drive-in restaurant, and import business. But the two friends were committed to being business partners and vowed to keep going until they found the right opportunity. “You can sit around and cry about what you perceive as a life stacked against you, or you can try. Just try, and if you fail, try again. In my experience, trying always beats crying,” DeVos wrote in his book Simply Rich: Life and Lessons from a Co-Founder of Amway: A Memoir.

Know that most success stories have failures behind them, and use early mistakes to your advantage to strengthen your next move.

Tune out the naysayers and keep going

As you pursue your goals, you’ll encounter people who don’t believe in your vision. That’s okay. Keep going. Arianna Huffington, co-founder and editor of The Huffington Post, was rejected 36 times by publishers provided with a copy of her second book. She persevered, and the 37th publisher signed her.

Don’t listen to the “That’ll Never Work” crowd. For your endeavor to succeed, you must fully believe in its promise. Roughly 50 percent of the Amway survey respondents did, displaying the attributes of successful entrepreneurs.

With the ideal combination of desire, readiness, perseverance, and positivity, you, too, just might be tomorrow’s Greg Glassman, Henry Ford, Steve Jobs, Arianna Huffington, Richard DeVos or Jay Van Andel.

Source : Inc

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