No need for bank balance details, foreign trip info in new ITR forms

Taxpayers will need to disclose passport numbers in place of travel details. 

The Income tax department has notified a new, more simplified, set of ITR forms for taxpayers to file their returns for assessment year 2015-16, wherein it has done away with intrusive details such as the number of foreign trips and bank account balances that assessees were expected to furnish earlier. 

The forms are in line with the finance ministry’s pledge last month, wherein it had assured taxpayers that the 14-page income tax return (ITR) form would be replaced with simpler threepage ITR forms and that filling of intrusive details such as number of foreign visits undertaken would be done away with. The notification of the ITR forms — ITR-1, ITR-2, ITR- 4S — by the CBDT in April had drawn widespread criticism for the enhanced compliance cost and the cumbersome details sought, following which finance minister Arun Jaitley had announced their withdrawal and announced that new, simplified forms would be issued. The government had also extended the time limit for filing these returns up to August 31, in place of July 31, in view of the changes in the forms. 

As per the notification for revised forms issued on Tuesday, a new form — ITR-2A — has been issued for individuals or Hindu undivided families (HUF) who do not have business income, capital gains or income from profession, and do not hold foreign assets. However, such taxpayers will have to disclose their passport numbers, if available, in place of the details about foreign trips sought earlier. All filers will now have to declare only the “total number of savings and current bank accounts” held by them “at any time during the previous year, excluding dormant accounts”. 

In terms of bank details, assessees will have to provide the IFSC code of the bank and the account in which they want their refunds to be credited. Those filing form 2A will get a fourpage schedule that has to be filled by only those who have to disclose additional details on a case-to-case basis. 

With regards to ITR-2, for those with capital gains, the earlier 14-page form has been replaced with a 3-page form with a schedule comprising 10 pages. The taxpayers will have to declare the foreign assets held abroad or have income from any foreign source. 

“In schedule FA, mention the details of foreign bank accounts, financial interest in any entity, details of immovable property or other assets located outside India. This also includes details of any account located outside India in which the assessee has signing authority, details of trusts,” the notification said. In case the resident assessee is a beneficial owner, the taxpayer has to fill in a schedule providing details such as the asset from which he derived benefit and the consideration for such asset was provided by any person other than such beneficiary. 

Earlier on May 31, the income tax department had said that an individual who is not an Indian citizen and is in India on a business, employment or student visa would not mandatorily be required to report the foreign assets acquired by him during the previous years in which he was non-resident if no income is derived from such assets during the relevant previous year. 
(Indian Express)

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New e-TDS/TCS Return Preparation Utility Ver. 1.2 released

It is proposed to release new version of NSDL e-Gov TDS/TCS – Return Preparation Utility (RPU) and File Validation Utility (FVU) tentatively on 23^rd June, 2015. Details of which are given below:-

1.    Return Preparation Utility (RPU)

·         Version 1.2 (Java based)

·         Version 4.4 (VB based)

2.    File Validation Utility (FVU)

·         Version 4.7 :- For quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards

·         Version 2.143:- For quarterly e-TDS/TCS statements up to FY 2009-10  

Above utilities can be downloaded from below URL :- 

https://www.tin-nsdl.com/etds-etcs/eTDS-download-regular.php

Features of the new version of RPU and FVU are as given below:-

1.    Incorporation of section code 192A and 194LBB: Section code 192A and 194LBB will be incorporated where the date of payment is on or after 01/06/2015 for regular and correction TDS statements pertaining to FY is 2015-16 onwards. Section code 192A will be applicable for Form no. 26Q and section code 194LBB will be applicable to Form no. 26Q and 27Q.

2.    Validation of Total Tax deducted vis a vis Total Tax Deposited amount: Validation will be incorporated in the TDS/TCS FVU wherein the total tax deducted amount in the deductee details should be equal to total tax deposited amount at the deductee details. This validation will apply to

ü  TDS/TCS statements pertaining to all F.Ys and all Forms.

ü  Will apply to regular and correction TDS/TCS statements.

3.    Incorporation of “T” remark (Transporter transaction and valid PAN is provided) in deductee details (Annexure I): Remark “T” will be applicable for Form no. 26Q from Q3 of FY 2009-10 onwards. This validation will apply to regular and correction statements.

4.    Applicability of certificate no. for lower/non deduction in deductee details (Annexure I): Quoting of certificate no. (if applicable) will be allowed only if the corresponding section code in deductee details is 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194LA, 195 and 206C (TCS). This validation will apply to regular and correction TDS/TCS statement pertaining to FY 2013-14 onwards.

5.    Higher deduction flag “C” not applicable to Section code 194LC: If the section code at the challan/ deductee details is 194LC, then the corresponding deductee record will not be mandated for higher rate of tax deduction i.e., will not be mandated to select flag “C”. Further, no warning message will be provided if the rate of deduction is less than 20.0000. This validation will apply to regular and correction statement pertaining to FY 2012-13 onwards where date of payment is 1st June, 2013 onwards.

6.    Deductee records with remark ‘C’ validations across all forms: In addition to existing editable fields for “C” remark deductee records in correction file, below mentioned fields will also to be allowed for update.

ü  Name of deductee

ü  Section code

ü  Nature of remittance (Applicable only for Form 27Q)

ü  “Unique acknowledgement of the corresponding form no. 15CA (if available)” (Applicable only for Form 27Q)

ü  Country of Residence of the deductee (Applicable only for Form 27Q)

ü  Grossing up indicator (Applicable only for Form 27Q)

ü  Date of deduction (Applicable to all Forms)

Said validation will be applicable for correction TDS/TCS statements.

In case of any queries / feedback, you may revert to us at tin_returns@nsdl.co.in .

For and on behalf of Tax Information Network.

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CBDT Released ITR-1(SAHAJ) and ITR-4S(SUGAM) excel utility for A.Y 2015-16

CBDT Released  ITR-1(SAHAJ) and ITR-4S(SUGAM) excel utility for A.Y 2015-16 in excel utility as well as in java utility

You can download the same from the below link.



Download ITR (1) For A.Y 2015-16

Download ITR (4S) For A.Y 2015-16

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CBDT notifies ITR-1, ITR-2, ITR-2A and ITR-4S to be filed for AY 2015-16

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)] 

GOVERNMENT OF INDIA 

MINISTRY OF FINANCE 
DEPARTMENT OF REVENUE 
[CENTRAL BOARD OF DIRECT TAXES] 
NOTIFICATION 
New Delhi, the 22nd day of June, 2015 

Income-tax 

S.O. 1660 (E).– In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 
1. (1) These rules may be called the Income-tax (8th Amendment) Rules, 2015. (2) They shall be deemed to have come into force with effect from the 1st day of April, 2015. 

2. In the Income-tax rules, 1962,− 

(1) in rule 12,− 
(a) in sub-rule (1),- 
(I) in clause (a), in the proviso, for clause (III), the following clause shall be substituted, namely: − 
“(III) has agricultural income, exceeding five thousand rupees;”; 
(II) after clause (b) the following clause shall be inserted, namely:- 
‘(ba) in the case of a person being an individual not being an individual to whom clause (a) applies or a Hindu undivided family where the total income does not include any income chargeable to income-tax under the heads “Profits or gains of business or profession” and “Capital gains” and to whom the provisions of clause (I) and clause (II) of the proviso to clause (a) does not apply, be in Form No. ITR-2A and be verified in the manner indicated therein;’; 

(III) in clause (ca), in the proviso, for clause (III), the following clause shall be substituted, namely: − 
“(III) has agricultural income, exceeding five thousand rupees;”; 

(b) in sub-rule (4), for the words, brackets, letters and figures “in the manners specified in clauses (i), (iii) and (iv) of sub-rule (3)”, the words, brackets, letters and figures “in the manners (other than the paper form) specified in column (iv) of the Table in sub-rule (3)” shall be substituted. (2) in Appendix-II, for “Forms SAHAJ (ITR-1), ITR-2 and SUGAM (ITR-4S)” the “Forms SAHAJ (ITR-1), ITR-2, ITR-2A and SUGAM (ITR-4S)” shall be substituted, namely:-

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Making company registration easy

The government introduced a new registration form INC-29 - which combined seven different forms into one - on May 1 this year as part of its effort to ease the process of "starting a business". Professionals who assist entrepreneurs to register companies - advocates, chartered accountants, cost accountants and company secretaries - feel this move will bring down the time taken to register a company from around 30 days to seven. However, experts say there is scope for further streamlining the process and reducing instances of manual interventions.

"Form INC-29 has been a game changer in terms of company incorporation," says Lionel Charles, founder, indiafilings.com. His firm now registers companies in less than a week - a process that used to take 20-30 days - he claims.

What has changed?

Earlier, the procedure started from getting a digital signature, and ended up with getting a commencement certificate for doing business. In between, the entrepreneur had to fill up different forms, such as DIR-3, INC-1, INC-7, DIR-12, INC-8, INC-9, INC-10 and INC-22, each serving a specific purpose (WHEN STARTING A BUSINESS).

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The INC29 form has clubbed all this forms into one, other than INC-22. Now after getting digital signature, an entrepreneur needs to just fill up INC29 in order to register the company. INC-22 - which is for notifying the address of the registered office - can be submitted within 30 days of incorporation.

Experts point out that with a single form, it should not take more than 3-4 days to register a company. "But that is not the case," says Agam Gupta, co-founder, quickcompany.in.

So what is the problem?

Ideally, entrepreneurs should get Director Identification Number (DIN), Permanent Account Number(PAN) and tax-deduction account number (TAN) delivered at their doorstep after filling up INC-29. But company professionals still fill up DIR-3 (for DIN) separately. Even now, a separate application form is registered on nsdl.com - for the company's PAN card. "These three functions are yet to be integrated in INC-29," says Hrishikesh Datar, chief executive, Vakilsearch.com.

Experts say an entrepreneur does not get any acknowledgment receipt after filling up its details in INC29 for PAN card. Without an acknowledgement receipt for PAN application, it is not possible to open a bank account in the company's name. Gupta says they prefer to take the nsdl.com route to get the company's PAN card. There are instances where an entrepreneur who has not applied separately for PAN, has had to wait for a month to receive it. Another big issue which delays the whole registration process is that Registrar of Companies (ROC) frequently asks for a resubmission of documents while rejecting the name proposed by the entrepreneur for his company.

According to Gupta around 50 per cent of the cases he files in a month receive such a name re-submission request. Datar, too, agrees that 75 per cent of the cases for re-submission occur because of name rejection. "It can be very arbitrary. There are times when we are not told the reason for name rejection," says Datar.

Earlier, when there was a separate form for name approval, a company professional was allowed to add six names in order of his preference. In INC-29, only one name could be given for ROC approval.

Such manual interventions in cases of re-submission could easily take additional eight to 10 days for companies to register Not all ROCs have begun accepting INC-29. "The RoCs in Andhra Pradesh and Karnataka are, for example, continuing with the old process, claiming they haven't received official notification," says Datar.

Experts point out that getting a digital signature - the first step for starting a business - has been made unnecessarily complicated. Earlier, self-attested photo identity proof and address proof were sufficient to get a digital signature, the government has now asked entrepreneurs to get these proofs attested by a banker, gazetted officer or a post master.

The way forward

While the government has set the target of appearing among the Top 30 countries for ease of doing business by 2017, India still fares poorly when it comes to "starting of business", going by World Bank's recent reports. For instance, it takes 4.5 days in Liberia - ranked 30 last year by World Bank - to start a business.

The government's efforts to ease the process of company registration may be in the right direction, but there is still some way to go when it comes to experiences on the ground.

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New norms make exit flexible for NPS investors

The Pension Fund Regulatory and Development Authority (PFRDA) has notified its guidelines for exits and withdrawals under the National Pension System (NPS). The guidelines are meant to allow a certain degree of flexibility to existing investors at the time of making an exit.

"The new guidelines make NPS a lot more flexible. They have brought in a few incremental changes which will make the NPS product better than what it was earlier," says Sumit Shukla, CEO, HDFC Pension Management.

Here are some of the major changes that have been effected:

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Partial withdrawal
NPS will now allow investors to make partial withdrawals up to 25 per cent of the contributions made. The withdrawals are permitted for higher education and marriage of children (including legally adopted child), for purchase or construction of a residential house or flat and for treatment of 13 specified illnesses such as cancer, kidney failure, etc of self, spouse, children and dependent parents.

EXIT OPTIONS

NPS investors can make partial withdrawals up to 25% of the contributions made The 25% contribution excludes contributions made by the employer Withdrawals permitted for higher education, children's marriage, purchase/ construction of house and treatment of critical illness Investors can defer annuitisation by a maximum of 3 years 100% withdrawal allowed if accumulated corpus on reaching 60 years is equal to or less than Rs 2 lakh

The 25 per cent withdrawal excludes contributions made by the employer as well as the gains made on the investment. So, if a person contributes Rs 5,000 a month, he can withdraw up to Rs 3 lakh from his total contribution of Rs 12 lakh in 20 years. Experts feel the withdrawal limit might be a bit on the lower side. "Twenty years from now, will the amount be sufficient for treating critical illness or higher education or marriage?" asks Manoj Nagpal, CEO, Outlook Asia Capital. However, Shukla believes the limit is beneficial as it will ensure a significant part of the corpus stays for retirement.

Withdrawals are permitted only after the completion of 10 years in the scheme and for a maximum of three times during the entire tenure of subscription with a five-year interval. Also, no withdrawal will be permitted in case the subscriber already owns - either individually or in the joint name - a residential house or flat other than ancestral property.

Investment after retirement
Earlier, the retirement age for corporate NPS investors was considered to be 60. According to the new norms, corporate NPS investors can exit at an age designated for retirement by their employers. This change is useful as several corporates have 58 as their retirement age.

Earlier, the NPS account automatically went into a deferred mode at the age of 60 if the lump-sum amount was not withdrawn. Under the new norms, the account is deferred only if the subscriber intimates his or her intention to do so in writing in the specified form at least 15 days before retirement. The big positive now is that in addition to the deferment, NPS investors will be able to make fresh contributions till the age of 70. Earlier, even if you deferred the account, you could not make further contributions. "Now that contributions are allowed till the age of 70, those working beyond 60 years can continue to avail of the tax benefit," says Shukla. Currently, an investment of Rs 1.5 lakh in NPS qualifies for tax deduction under section 80C. The 2015-16 Budget has also allowed an additional tax exemption of Rs 50,000 under Section 80CCD.

According to earlier norms, a minimum of 40 per cent of the corpus at age 60 had to be annuitised. The new exit norms now allow investors to defer the annuitisation by a maximum of three years. This flexibility will prove especially useful for those who have a sizeable portion of their corpus in equities. If the markets are going through a turbulent phase during the time of withdrawal, these investors can choose to postpone their annuitisation decision. This becomes even more significant in the light of the Bajpai committee recommendations, which advocate that the cap on equity investment be raised to 100 per cent from 50 per cent.

Earlier, individuals could withdraw the 60 per cent amount in lump sum or in a phased manner. While the new guidelines allow withdrawals to be deferred till 70, they do not specify whether they will be allowed in a phased manner or not. According to experts, the PFRDA will issue clarifications on the issue in the coming months.

The way ahead

Besides the exit and withdrawal notification, NPS has been undergoing changes in a few other areas as well. Recently, the account opening forms for NPS have been simplified, with the number of pages brought down to two from six. Investors opening an account through a bank need not go through a separate KYC (know your customer) if their KYC has already been done by the bank. PFRDA is also working on setting up an online platform for NPS transactions. At present, all NPS transactions are done offline and investors can only view their account online. The investment pattern itself may undergo a sea change if the recent recommendations of the Bajpai committee are accepted. The committee wants an increase in exposure to equity investment in the next six years in different phases. In the first phase, it wants the equity limit to go up to 50 per cent from the current 15 per cent in government plans and life cycle funds with equity cap at 75 per cent to be floated. Life cycle funds invest across asset classes depending on the age of the investor. The committee also wants the investment universe to be expanded to NSE 100 from the existing Nifty 50. In phase two, the equity ceiling in both government and private sector plans would be raised to 75 per cent. In phase three, it wants no ceiling on asset classes. The committee also moots investment in alternate asset classes such as real estate, commodities and infrastructure.

Exemption from annuitisation
The new guidelines allow investors to withdraw the entire accumulated amount without purchasing annuity if the corpus in the tier-I account on the date of reaching 60 years is equal to or less than Rs 2 lakh. For withdrawals before the completion of 60 years, subscribers are not required to purchase annuity provided the accumulated corpus does not exceed Rs 1 lakh. This is a positive for those with a low accumulated corpus. According to earlier norms, the subscriber had to set aside a minimum of 80 per cent of the accumulated corpus for buying annuity if the money was withdrawn before turning 60.

Once an annuity is purchased, the option of cancellation and reinvestment with another annuity service provider or in another annuity scheme shall not be allowed unless the same is done within the free-look period specified by the service provider, say the new guidelines.

(Business Standard)

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ICAI asked Suggestions on GST

The biggest tax reforms in the history of Independent India are taking its final shape as the Constitution (122nd Amendment) Bill relating to the Goods and Service Tax (GST) has been passed by the Lok Sabha. Multiplicity of taxes, varying rates, costly compliance and lower revenue to the public exchequer are some of the important reasons which have compelled the administrators to bring in an effective tax system which can address such issues. GST will integrate the State economies and boost overall growth. It would subsume Central Excise Duty, Service Tax, Central Sales Tax, State Value Added Tax (VAT), Entry Tax, Octroi and other State levies, and pave the way for formation of a national market.

Being a proactive Institute, it has been always an endeavor of the ICAI to assist the country’s Government, Regulators and citizens by communicating various concerns and suggestions. The implementation of GST will immensely expand our professional horizons and bring tremendous opportunities to the profession. On our part, we have offered the CBEC, our unconditional support in paving the way for its implementation. Due to its neutral image and credibility, it is privilege of this Institute that government has always been open to the suggestions of the ICAI in any tax related matters and tries to act upon the same to the maximum possible extent.

You are invited to offer your suggestions, comments and thoughts on the said bill to the ICAI by mailing it to CA. Atul Gupta, Chairman, Indirect Taxes Committee, (Member of the Goods and Services Tax Network (GSTN) Advisory Committee as nominated by GSTN Board ) at idtc@icai.in. 

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NPS now offers loads of Tax benefits for employees

Now a days NPS is in talk because of extra tax benefit, we have come with the article mentioning all the tax benefit NPS will give.

Finance Minister Arun Jaitley in Budget 2015-16 introduced an additional income tax deduction of Rs. 50,000 for contribution to the New Pension Scheme (NPS) under Section 80CCD. NPS is a voluntary pension scheme, which is regulated by the Pension Fund Regulatory and Development Authority.

Under this scheme, subscribers invest in a fund chosen by them and at the time of retirement they get a lump sum amount depending on the performance of that fund. The returns from NPS are not guaranteed; they are market-linked. NPS was introduced in 2004 for the new government employees but from 2009, it was extended to all on a voluntary basis.

Lets us understand the deduction available under income tax

Deduction under Section 80CCD

Section 80CCD provides for Income Tax deductions for contributions made to the notified Pension Scheme of the Central Govt i.e. for contribution to the National Pension Scheme (NPS). Deduction under this Section is only available to Individuals and not to HUF’s. The Individual claiming deduction under this Section may be Resident or Non-Resident.

Section 80CCD(1): Deduction to NPS Scheme for Contribution by the Individual

Deduction under Section 80CCD(1) is not only available to Salaried Individuals but non-salaried individuals can also contribute to the NPS Scheme and avail deduction for the same.

The maximum amount allowed as a deduction under Section 80CCD(1) is:-

• In case of an employees: 10% of his salary for the financial year (Salary includes Dearness Allowance but excludes all other Allowances and Perquisites)
• In case of non-employees: 10% of the Gross Total Income in the Financial Year

AMENDMENT VIDE BUDGET 2015 IN SECTION 80CCD

Earlier the deduction allowed for contribution to NPS was limited to Rs. 1 Lakh [Sub Section 1A of Section 80CCD]. However, with a view to encourage people to contribute towards NPS, the maximum amount allowed to be invested in National Pension Scheme has been increased from Rs. 1 Lakhs to Rs. 1.5 Lakhs. The limit on deduction for tax purposes on account of contribution by employee to NPS, which was capped at Rs. 1.00 lac last year, has been removed and now the tax deduction can be claimed up to 10% of salary (Basic + DA) subject to overall ceiling of Rs. 1.50 lacs u/s 80 CCE of Income Tax Act. 1961.

Moreover, in the Budget 2015 announced by Arun Jaitley – a new sub-section 1B of Section 80CCD has also been introduced so as to provide for additional deduction in respect of any amount paid, of upto Rs. 50,000 for contributions made by any Individual assessees under NPS.

This additional benefit of Rs. 50,000 is over and above the benefit of Rs. 1.5 Lakhs allowed to be claimed as a deduction under Section 80C. Therefore, now the total deduction that can be claimed under Section 80C + Section 80CCD = Rs. 2 Lakhs.

SECTION 80CCD(2): DEDUCTION TO NPS SCHEME FOR CONTRIBUTION BY THE EMPLOYER

In case any employer contributes to the NPS Scheme on behalf of the employee and the benefit of the same would be availed by the employee, the employee would also be allowed a deduction under Section 80CCD(2) for the amount of contribution made by the employer.

The contribution made by the employee himself to the NPS Scheme would be allowed as a deduction under section 80CCD(1) and the contribution made by the employer to the NPS Scheme would be allowed as a deduction under Section 80CCD(2).

There is a maximum limit for deduction for contribution made by the Individual himself under Section 80CCD(1) as mentioned above. But for contribution made by the employer to the NPS Scheme for benefit of employee, there is no maximum limit for deduction allowed under Section 80CCD(2). The Deduction under Section 80CCD(2) is over and above the deduction of Rs. 1 Lakh under Section 80C + Section 80CCC + Section 80 CCD(1)

TAX ON AMOUNT RECEIVED BACK FROM THE NATIONAL PENSION SCHEME

The contribution made to the NPS Scheme would be received back by the employee as Pension after retirement or on surrender of the policy (as the case may be). The amount so received as Pension or on closure of the NPS Account either by the individual himself or by the nominee which has earlier been claimed as a deduction under Section 80CCD, would be regarded as Income in the hands of the recipient and would be taxed as per the Income Tax Slabs in the year of receipt.

Tax Implication of NPS

Employer contributing to the NPS on behalf of an employee will get deduction from his income (i.e. employer's income) an amount equivalent to the amount contributed or 10% of BASIC SALARY + DA of the employee, whichever is less. (Section 36 (1) (iv a) of the Income Tax Act 1961).

Employer's contribution to NPS on behalf of the employee is treated as perquisite in the hands of the employees, but is deductible u/s 80CCD (2) of the Income tax Act, 1961 to the extent of 10% of basic salary. This deduction is over and above the limit of Rs.1.5 lac u/s 80 CCD (1). This will lessen the tax burden of the employee to the extent of amount deductible u/s 80CCD (2) of the Income tax Act, 1961.

Contribution by individual employee is eligible for a deduction from Income under Section 80CCD (1) of the Income Tax Act 1961 upto Rs 1.5 Lakhs. However, investments under Section 80C Section 80CCC and 80CCD(1) should not exceed Rs.1.5 lakhs per assessment year to claim for the deduction.

An additional exclusive tax benefit of Rs.50,000/- under section 80CCD (1B) per assessment year (applicable from FY 2015-16/AY 2016-17) for NPS investments.

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Top 5 myths around filing e-returns that might cost you heavily

E-filing of income tax returns, introduced by the IT Department in assessment year 2007-08 for individuals earning over Rs 5 lakhs per annum from the assessment year 2013-14 onwards, is a simple and easy way of filing returns but has not been popular because of the mindset of the people and misconceptions about filing tax returns online.

These misconceptions can cost you dearly and that's why they need to be clarified. We are sharing the five most common myths surrounding the process of filing of tax return online, which otherwise is extremely simple in nature: 

Myth 1: I don't need to pay tax for the interest income generated on fixed deposits as the bank already deducts the tax at source. This is a common misconception with people earning interest income on fixed deposits. It is an utter misconception as the taxpayer may be liable to pay tax on the same at a much higher tax rate. Let's take an example of an employee earning Rs 6,00,000 per annum as salary. He also earns an interest of Rs 20,000 on his fixed deposit. The bank has deducted tax at source of Rs 2,000 but he is actually liable to pay a tax amount of Rs 4,000 on the same as he comes under the 20 per cent tax bracket, whereas the bank has deducted only 10 per cent. 

Myth 2: My e-filing process is complete once I've submitted my tax return online. The e-filing process of a taxpayer isn't complete unless a signed copy of the ITR-V acknowledgement has been sent to the CPC in Bangalore within 120 days from the date on which the taxpayer filed his/her income tax return. Remember that the ITR-V copy should be sent via Speed Post or Ordinary Post only. The IT department has initiated the process of scrapping this process for all the taxpayers holding an Aadhar card. Taxpayers without an Aadhar card would be liable to send a signed copy of their ITR-V acknowledgement to the CPC in Bangalore and if one fails to do so; his/her income tax return may be considered as unfiled making the taxpayer file his/her returns once again. 

Myth 3: I don't need to disclose my previous salary amount to my current employer. This is a common problem wherein most employees avoid mentioning any details about their previous employer to their present employer. Because of this, the new employers have no details about previous salary, making them deduct tax at source as if the employee has no other source of income. That is incorrect. The employee must realise that the tax must be paid on the total amount of salary received in the previous year. When the two salaries are added together, it usually results in the employee entering into a higher tax bracket. 

Myth 4: The process of e-filing one's income tax return is not mandatory. Filing returns has been made mandatory for any taxpayer having a total income of Rs 5,00,000 or more. Total income is arrived at after deducting all the relevant deductions under chapter via one's gross total income. A taxpayer earning less than Rs 5,00,000 can also e-file their income tax returns or use the option of filing returns manually, however the same is not recommend. 

Myth 5: If I e-file my income tax return, I'll come under the scrutiny of the IT Dept. Once the process of e-filing the return is over, you receive an intimation u/s 143(1). This intimation is just a standard practice on the part of the CPC in Bangalore. A refund cannot be processed without the same. Unfortunately, sometimes even though the taxpayer has correctly disclosed all the income information in his tax return, he gets a tax demand via the intimation u/s 143(1). This is only because the department hasn't processed his case correctly and the taxpayer can correct the same by filing a rectification u/s 154. (The writer is CIO & Founder of Makemyreturns.com) 

(Business Today)

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All About e-filing for LLP

In order to carry out e-Filing on LLP you have facility to download the eform and fill it in an offline mode. Every form has the facility to pre-fill the data available in LLP system. Once the e-form is filled you would need to validate the e-form using Pre-scrutiny button. You would then have to affix the relevant digital signatures and save the form. You would need to be connected to the internet to carry out the pre-fill and pre-scrutiny functions. The step by step process is given below. The filled up e-form as per relevant instruction kit needs to be uploaded on the LLP portal. On successful upload, the Service request number would be generated and you would be directed to make payment of the statutory fees. The step by step process is given below. Once the payment has been made the status of your payment and filing status can be tracked on the LLP portal by using the ‘Track Your Payment Status’ and ‘Track Your Transaction Status’ link respectively.

Please follow the steps given below to proceed to do e-Filing:

·  Select a category to download an eForm from the LLP portal (with or without the instruction kit)

·  At any time, you can read the related instruction kit to familiarize yourself with the procedures (you can download the instruction kit with eform or view it under Help menu).

·  You have to fill the downloaded eForm.

·   You have to attach the necessary documents as attachments.

· You can use the Prefill button in eForm to populate the grayed out portion by connecting to the Internet.

·  The applicant or a representative of the applicant needs to sign the document using a digital signature.

· You need to click the Check Form button available in the eForm. System will check the mandatory fields, mandatory attachment(s) and digital signature(s).

· You need to upload the eForm for pre-scrutiny. The pre-scrutiny service is available under theServices tab or under the eForms tab by clicking the Upload eForm button. The system will verify (pre-scrutinize) the documents. In case of any inadequacies, the user will be asked to rectify the mistakes before getting the document ready for execution (signature).

· The system will calculate the fee, including late payment fees based on the due date of filing, if applicable.

· Payments will have to be made through appropriate mechanisms - electronic (credit card, Internet banking, NEFT, Pay Later) or traditional means (at the bank counter through challan).

(a) Electronic payments can be made at the Virtual Front Office (VFO) or at PFO

(b) If the user selects the traditional payment option, the system will generate 3 copies of pre-filled challan in the prescribed format. Traditional payments through cash, cheques can be done at the designated network of banks using the system generated challan. There will be five banks with estimated 200 branches authorized for accepting challan payments.

·  The payment will be exclusively confirmed for all online (Internet) payment transactions using payment gateways.

· Acceptance or rejection of any transaction will be explicitly communicated to the applicant (including facility to print a receipt for successful transactions).

·  LLP will provide a unique transaction number, the Service Request Number (SRN) which can be used by the applicant for enquiring the status pertaining to that transaction.

·  Filing will be complete only when the necessary payments are made.

·  In case of a rejection, helpful remedial tips will be provided to the applicant.

· The applicants will be provided an acknowledgement through e-mail or alternatively they can check the LLP portal.

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