Tag Archives: Whitefield Rising

LS clears amendments to CGST, IGST, GST compensation bills

The lower house has passed The Integrated Goods and Services Tax (Amendment) Bill, 2018, The Union Territory Goods and Services Tax (Amendment) Bill, 2018, The Goods and Services Tax (Compensation to States) Amendment Bill, 2018 and The Central Goods and Services Tax (Amendment) Bill, 2018.

Finance Minister Piyush Goyal today said the capacity to slash the GST rates on more items would go up as Goods and Services Tax (GST) revenues and the compliance rate increases and the economy formalises.

Goyal was speaking in the Lok Sabha after moving four bills seeking to amend the Goods and Services Tax (GST) laws for consideration and passage. The bills were Central GST (Amendment) Bill, Integrated GST (Amendment) Bill, GST (Compensation to States) Amendment Bill and Union Territory GST (Amendment) Bill.

His speech 45-minute speech was interrupted by Congress members who were in the Well raising anti-government slogans on various issues, including demanding setting up of a joint parliamentary committee to probe the Rafale jet fighter deal.

The Minister said the “GST Council has reduced rates on many items and services in the last round. We want the consumer to be burdened less by indirect tax.”

Elaborating, Goyal said that in the last one year, the GST Council has reduced rates on 384 items and 68 services. “186 items and 99 services were exempted from GST. Also sanitary pads were exempted from the GST,” he said.

He also pointed out that the government was able to collect GST in line with the country’s fiscal deficit target.

Highlights Of Proposed Return Filing Process

  • Taxpayers with a turnover threshold of up to Rs 5 crores can file a quarterly return but the taxes will have to be paid monthly. Forms sugam — for B2B and B2C supplies — and sahaj — for B2B supplies — have been proposed for this category.
  • Taxpayers above this threshold will have to file a monthly return. The due date for the same will be the 20th of the next month.
  • Suppliers can upload invoices anytime during the month and this would be visible to the buyers.
  • Based on the uploaded invoices, buyers will be able to claim input tax credit.
  • Buyers will be able to claim input tax credit for those invoices that are uploaded till the 10th of that month.
  • Taxpayers will be able to file an amendment return twice for any tax period.

The Minister said the “GST Council has reduced rates on many items and services in the last round. We want the consumer to be burdened less by indirect tax.” Elaborating, Goyal said that in the last one year, the GST Council has reduced rates on 384 items and 68 services.

“186 items and 99 services were exempted from GST. Also sanitary pads were exempted from the GST,” he said.

He also pointed out that the government was able to collect GST in line with the country’s fiscal deficit target.

Referring to the recent growth forecast about India by the IMF, he said “I think India’s economic growth will be better than this forecast.”

India is projected to clock an economic growth of 7.5 per cent in the 2019-2020 fiscal year on strengthening of investment and robust private consumption, the IMF had said in its latest report.

Source :  Press Reports

 

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Income Tax Return Filing: Avail these Tax Deductions to reduce your Tax Liability

The Income Tax Act allows deductions under various sections to plan your tax-incidence. As individuals, the awareness of these deductions comes in handy in order to reduce the tax liability

The due date for filing the Income Tax return is not far. Tax filing is mandatory for all the individuals whose gross total income is above Rs 2.5 lakh in a financial year. The Income Tax Act allows deductions under various sections to plan your tax-incidence. As individuals, the awareness of these deductions comes in handy in order to reduce the tax liability. These deductions are mainly given on account of your insurance policies to medical expenses.

If you have not been filing your income tax return and seeing your money being transferred to the taxman’s vaults in the form of tax deducted at source, then beware and be aware. You get the benefit of tax refund only when you file your income tax return. Also, your annual tax incidence can be nil if you deploy these tax deductive instruments to the fullest.

The important tax deductions allowed under the Income Tax Act to reduce your tax liability are:

Deduction U/s 80G

If you have made donations to certain funds and institutions established for “charitable purposes” then you can claim a deduction of 50% of the amount donated. However, this deduction is not available if money is donated to a wholly religious trust. Moreover, deduction above Rs 2000 can be provided if the sum is paid by any mode other than cash. It has been done to curb the movement of unaccountable money.

Deduction U/s 80C

Under this section, you are allowed a total deduction of Rs 1.5 lakh paid towards life insurance premium, Public Provident Fund, tax-saving FD, National Saving Certificate, Equity Linked Saving Schemes, National Pension Schemes, term insurance, ULIPs etc. Moreover, a deduction is allowed to pay a premium towards the life insurance of spouse and children.

Apart from this, one can also claim tax deduction benefits against expenses like tuition fees, home loan principal repayment, statutory expenses like stamp duty and registration fee for buying a house etc. The total limit is Rs 1.5 lakh for a financial year.

Deduction U/s 80CCG

If you are a new retail investor and a resident individual, then you can avail the tax-benefit of investment made under the notified equity saving scheme. The Rajiv Gandhi Equity Saving Scheme is one such scheme. However, your gross total income shall not exceed Rs 12 lakh and investment shall be locked for a period of 3 years. The deduction limit is 50% of the amount invested in equity shares which are restricted to Rs 25,000 in a year.

Deduction U/s 80D

For premiums paid towards health insurance policies and expenditure on preventive health check-ups, the deduction is allowed till Rs 25,000. For citizens above 60 years of age, the deduction is allowed till Rs 30,000. Moreover, it includes deductions towards the premium paid for the spouse, dependent children and parents (dependent or otherwise). Moreover, one can claim a deduction of Rs 30,000 for the medical expenditure on the health of a super senior citizen (if mediclaim insurance is not taken). The payment should be made by any mode apart from cash and preventive health check-up can be made by cash.

Deduction U/s 24B

Under this section, one can claim tax deductions towards interest paid on a home loan. The limit is Rs 200,000 per annum.

Deduction U/s 80E

You can avail tax benefits for education loan taken from approved banks or financial institutions. You get tax deduction benefits against interest paid on the education loan. There is no upper limit for claiming deduction under 80 E.

Deduction U/s 80EE

It is allowed for interest paid on loan taken for the acquisition of a residential property. A deduction is available even if the property is under construction. The amount of loan sanctioned shall not exceed Rs 35 lakh and the purchase price of the house does not exceed Rs 50 lakh. The extent of deduction is interest on a  loan or Rs 50,000, whichever is less.

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Last date for ITR filing for AY 2018-19 extended

CBDT has extended the due date for ITR filing, considering practical difficulties and genuine hardship. ICAI had recently urged the CBDT to extend the ITR filing due date from 31 July to 31 August.

The last date of Income Tax Return filing has been extended by CBDT, giving some respite to millions of taxpayers. The new due date for filing the income tax return (ITR) for AY2018-19 is 31 August 2018 from 31 July 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).

The due date to file the ITR under this section is for individuals and Hindu Undivided Family (HUF). For assessees whose books of accounts are required to be audited, the due date to file ITR is 30 September. In 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.

The delay in the release of the ITR utilities and continuous updation of the schemas, delay in the updation of the TDS credit in the Form 26AS of the taxpayers and issues arising from the first time implementation of the GST law were cited to be among the significant causes of delay in filing the return.

ICAI had argued that heavy monsoon in India was in its fury. Several floods have been reported in states like Maharashtra, Gujarat, Uttarakhand and Jammu and Kashmir. “This abnormality has disrupted the normalfunctionality, making ITR filing not to be the first agenda in the minds of people”, it said.

The Finance Act 2017 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.

Source :  Press Reports

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Deadline To File Income Tax Return Extended By A Month

The Central Board of Direct Taxes (CBDT) has extended the due date for filing of Income Tax Returns from July 31, 2018, to August 31, 2018, for certain categories of taxpayers.

The Central Board of Direct Taxes (CBDT) has extended the due date for filing of Income Tax Returns to August 31, 2018, for categories of taxpayers who were to file their returns by July 31.

The decision comes days ahead of the July 31 deadline, which several groups had requested the government to push to later.

CBDT had notified the new income tax return forms for assessment year 2018-19 on April 5. Experts said the introduction of new forms was leading to delays in filing of returns.

The government on Thursday extended the deadline for filing income tax return for assessment year 2018-19. The deadline of July 31, 2018 has been extended by a month, the Ministry of Finance said in a series of posts on microblogging site Twitter. That means the assessees can file their income tax return (ITR) for financial year 2017-18 by August 31 without any penalty charges.

“The Due Date for filing of Income Tax Returns for Assessment Year 2018-19 is 31.07.2018 for certain categories of taxpayers… Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the ‘Due Date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers,” the ministry said.

Ministry of Finance

@FinMinIndia

Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the ‘Due Date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers.

The Central Board of Direct Taxes is the apex policy-making body of the Income Tax Department.

Around 6.84 crore income tax returns were filed during financial year 2017-18, compared to 5.43 crore filed in the previous year, as per government records.

Further, the CBDT had said non-filing of ITR before the due date from this assessment year would lead to a penalty of Rs 1,000, 5,000 and Rs 10,000, depending on when the returns were filed after the deadline. The fine for taxpayers having income under Rs 5 lakh remained at Rs 1,000.

Filing tax returns is mandated by law and is an important proof of your tax compliance. Although ITR return forms are fewer, you would need your documents such as PAN, Aadhar card, proof of investment, TDS certificates etc while e-filing the ITR. Keep your ‘other income’ documents like those of capital gains, rental income, dividend income etc handy too. Documents for foreign income or assets should be organised too.

The income tax department had recently issued alerts warning salaried taxpayers not to follow any unlawful practice of evading taxes either by way of under-reporting income or claiming excess deductions like House Rent Allowance (HRA), Leave Travel Allowance (LTA) etc. Similarly, the department also wants taxpayers to file their tax returns in time and avoid delay. In order to ensure the same, new penalty provisions have been introduced. With the entire process of filing tax turning simpler, expectations are that the income of the government is set to soar.

Source :  Press Reports

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GST Products to get Cheaper

The GST Council on Saturday cut tax rates on 88 items, including footwear, refrigerator, washing machine and small screen TV, while the widely demanded sanitary napkins have been exempted from the levy.

The highest tax bracket of 28 per cent has been rationalised further with rates on daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium ion batteries, being lowered to 18 per cent. The revised tax rates will come into effect from July 27.

A look at the items that got cheaper.

GST on commodities slashed to 0%:

Sanitary Napkins

Supply of services by old-age homes

GST on commodities slashed from 28% to 18%:

Refrigerators

Water Heaters

Washing Machines

Televisions (up to 68 cm)

Vacuum Cleaners

Paints

Hair Shavers

Hair Curlers

Hair Dryers

Scent Sprays

Lithium-ion batteries used in mobile phones and electric vehicles

GST on commodities slashed from 18% to 12%:

Handbags including pouches and purses; Jewellery box

Wooden frames for painting, photographs, mirrors etc

Ornamental framed mirrors

Brass Kerosene Pressure Stove

Art ware of iron

GST on commodities at 5%:

Ethanol

Solid biofuel pellets

Handmade carpets and other handmade textile floor coverings (including namda/gabba)

Hand-made braids and ornamental trimming in the piece

Source : Press Reports

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GST council: Taxpayers expected to get Major Relief

It may be recalled that in the 27th meeting held on 4th of May, 2018 the Council had approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law.

The 28th meeting of the GST Council was held today in New Delhi, under which once again the 21-member committee has brought in revision to a list of items under Goods and Services Tax (GST) regime. The meeting was chaired by Union Minister of Railways, Coal, Finance and Corporate Affairs Piyush Goyal. While a list of items were getting relief from higher tax slab from GST rate of 28%, Goyal also brought in good news for taxpayers. It may be recalled that in the 27th meeting held on 4th of May, 2018 the Council had approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law.

The council said, “The formats and business process approved today were in line with the basic principles with one major change i.e the option of filing quarterly return with monthly payment of tax in a simplified return format by the small taxpayers.”

Here’s how GST Council gave relief to taxpayers.

All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return. The return is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier. Invoices can be uploaded continuously by the seller and can be continuously viewed and locked by the buyer for availing input tax credit.

This process would ensure that very large part of the return is automatically filled based on the invoices uploaded by the buyer and the seller. Simply put, the process would be “UPLOAD – LOCK – PAY” for most taxpayers.

Further, taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.

NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.

Moreover, the council also approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply.

For such taxpayers, simplified returns have been designed called  Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return.

It needs to be noted that, 93% of the taxpayers have a turnover of less than Rs 5 Cr and these taxpayers would benefit substantially from the simplification measures proposed improving their ease of doing business, as per the council. It explained that even the large taxpayers would find the design of new return quite user friendly.

Not only this, the council also has approved the proposal to open the migration window for taxpayers, who received provisional IDs but could not complete the migration process.

The taxpayers who filed Part A of FORM GST REG-26, but not Part B of the Tsaid FORM are requested to approach the jurisdictional Central Tax/State Tax nodal officers with the necessary details on or before 31st August, 2018.

Taxpayers who intend to complete the migration process are requested to approach their jurisdictional Central Tax/State Tax nodal officers in this regard.

Source : Press Reports

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CBIC to organise third edition of GST Refund

The CBIC will organise the third tranche of its special fortnight drive from July 16 to 30 to fast track clearance of pending GST refunds of exporters.

In the previous two fortnights, the Central Board of Indirect Taxes and Customs (CBIC) had cleared Rs 5,401 crore and Rs 7,635 crore refunds stuck with regard to Integrated GST (IGST) paid and input tax credit (ITC) claims.

In case of IGST refunds for goods exported out of India, the percentage of amount of refund claims disposed by CBIC is lready more than 90 per cent, a finance ministry statement said.

“In order to liquidate pendency further, and to handhold/ guide the trade for applying for the refund claims in a proper manner, it has been decided to observe another refund fortnight from July 16 to 30, 2018. Dedicated refund cells and helpdesks will be provided for exporters to get their refund claims processed, in each Commissionerate,” it added.

The ministry asked the exporters and export organisations to take benefit of this opportunity to get their pending refund claims processed.

Last month, the government had said that it had till then cleared pending GST refunds to the tune of Rs 38,062 crore.

Source :  Press Reports

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