Addressing the difficulty faced by the assessees; while affixing digital signatures on various forms, Central Board of Direct Taxes (CBDT ) has released a DSC Utility for digitally signing the Income Tax Returns and all other forms required to be uploaded on the income tax efiling website.

The DSC Utility can be downloaded by clicking here:

DSC UTILITY OF INCOME TAX DEPARTMENT

 

 

 

 

Statutory Compliance Dates for May 2016.

05-05-2016 – (if payment done online then 06-05-2016)- Service Tax / Excise Monthly Payment.

07-05-2016 – Deposit of Tax deducted in the month of April, 2016.

07-05-2016 – Deposit of Tax deducted under Section 194-IA in the month of April, 2016.

10-05-2016 – Excise Monthly Return.

15-05-2016 – PF Monthly Payment.

15-05-2016 –TDS Quarterly Returns for the fourth quarter of F.Y. 2015-16.

20-05-2016- VAT / CST payment for the previous month.

21-05-2016 – ESI Monthly Payment.

22-05-2016 – Issue of TDS Certificate for tax deducted under Section 194-IA in the month of April,2016.

25-05-2016 – PF Monthly Return.

30-05-2016 – Issue of Quarterly TDS Certificate on Form No. 16A ( in respect of tax deducted for payments other than salary ) or quarterly TCS Certificate on Form No. 27D ( in respect of tax collected ) during the quarter ending March 31, 2016.

30-05-2016 –LLP- Annual Return-Form 11

31-05-2016 – ​Due date to furnish statement of reportable accounts (in Form No. 61B) for calendar year 2015 by reporting financial institutions.

31-05-2016-   Issue of TDS Certificate pertaining to TDS on salary (Form No. 16).

 

Statutory Compliance Dates for March 2016.

05-03-2016 – (if payment done online then 06-03-2016)- Service Tax / Excise Monthly Payment.

07-03-2016 – Deposit of Tax deducted in the month of February, 2016.

07-03-2016 – Deposit of Tax deducted under Section 194-IA in the month of February, 2016.

10-03-2016 – Excise Monthly Return.

15-03-2016 – PF Monthly Payment.

15-03-2016 – Payment of Advance Income Tax (the whole of the estimated tax)

20-03-2016- VAT / CST payment for the previous month.

21-03-2016 – ESI Monthly Payment.

22-03-2016 – Issue of TDS Certificate for tax deducted under Section 194-IA in the month of February,2016.

25-03-2016 – PF Monthly Return.

25-03-2016 – UP VAT payment for the tax period ending upto 20th March

31-03-2016 –Service Tax Payment for the month /quarter ending March.

31-03-2016 – Last Date to file Income Tax Return for the Assessment Year 2015-16 without penalty.

 

BUDGET-1

BUDGET-2

 
  • To enact law to give statutory backing to AadhaarCcW1em6UkAAI63v
  • Create new infra for irrigation, value addn to farm-mkt connectivity
  • Proposed Rs 2.87 lakh cr as grants to rural local bodies in FY17
  • Rs. 38000 crore proposed to be spent on MANREGA in FY 16-17
  • Rs 2,000 Crores allocated to provide LPG connections to poor families
  • Proposed to exempt parts of dialysis equipment from basic customs duty.
  • Govt to pay 8.33% for new employees towards EPFO contribution for 3 years.
  • Sec. 80JJAA deduction extended from only manufacturing units to all assessees who are subject to tax audit
  • Rs. 1700 crores allocated for Skill India Mission under Pradhan Mantri Kaushal Vikas Yojna
  • 100% FDI to be allowed in marketing of food products manufactured and produced in India
  • Aadhaar bill to be introduced in current session of parliament
  • Registration of Companies should be given in one day – Companies Act proposed to be amended
  • Relief under Section 87A proposed to be increased from Rs. 2,000 to Rs. 5,000
  • Deduction under Section 80GG for individuals paying rent but not receiving HRA proposed to be increased from Rs. 24,000 to Rs. 60,000.
  • Turnover limit of presumptive taxation Scheme increased to 2 crores
  • Presumptive taxation scheme introduced for all professionals with receipts up to Rs. 50 lakhs.
  • Reduction in corporate tax – New manufacturing companies after March 1, 2016 have to pay tax at 25%
  • Corporate tax reduced to 29% for small business having turnover less than 5 crores
  • 40% Withdrawal from Super Annuation Funds proposed to be tax exempt
  • Proposed to provide tax exemption on withdrawal of 40% from national pension Scheme at the time of retirement
  • Krishi Kalyan Cess 0.5%to be levied on all taxable services
  • Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh
  • Surcharge raised from 12 to 15% on incomes above 1 Crore
  • Excise duty on branded ready made garments rised to 6% without input credit from Nil
  • Proposed to increase excise duty on tobacco products from 10% to 15%
  • A new dispute resolution scheme is introduced, no penalty upto disputed amount of 10 lacs
  • Services provided by EPFO exempted from service tax
  • FM has announced introduction of one time dispute resolution Scheme for cases already pending due to retro-amendment
  • 11 news benches of CESTAT proposed to be setup
  • Proposed to introduce limited period compliance window for domestic taxpayer to declare domestic black Money
  • Proposed to amend Section 14A; disallowance under Sec. 14A should not increase the actual expenditure
  • Proposes to rationalize TDS provisions
  • No higher withholding tax if non-resident does not have PAN but furnishes an alternative document
  • 10% Tax on Dividend in excess of Rs. 10 Lakh in the hand of  recipient.
  • No DDT on REITs
  • STT For Option Proposed to Hike to 0.05%
 

Click on our website “www.godhwanni.in” to know

whats DEARER and whats CHEAPER after the BUDGET 2016.

Check all the budget updates on our website “www.godhwanni.in

BUDGET 2016

 

 

Deductions from Gross Total Income

The impact of Deductions available under various sections of Income Tax Act is not same for all. It depends upon applicable tax rates as per the total taxable income and status of assessees. An assessee, whose income is taxable at higher rates will have more tax savings i.e. more impact on his / her tax liability than the assessee whose income is taxable at lower rates.

Deductions Allowable under various sections of Chapter VIA of Income Tax Act :Deductions under Section 80C (Available to Individuals / HUFs)

For investments in specified schemes, saving instruments etc.

The aggregate of total deduction available under sections 80C, 80CCC and 80CCD is limited to whole of the amount paid or deposited subject to a maximum of Rs. 1,50,000/- for investment in one or more of the following :

  • Life Insurance Premium For individual, policy must be in self or spouse’s or any child’s name in case of individuals and on life of any HUF member in case of HUF.
  • Sum paid under contract for deferred annuity for individual, on life of self, spouse or any child .
  • Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
  • Contributions by an individual made under Employees’ Provident Fund Scheme
  • Contribution made by a Resident Individualin PPF account. The account can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
  • Contribution by employee to a Recognized Provident Fund.
  • Contribution by an employee to an approved superannuation fund
  • Deposit in Sukanya Samriddhi Accountas natural / legal guardian of girl child.
  • Subscription to notified savings certificates [National Savings Certificates]
  • Contribution for participation in unit-linked Insurance Plan of UTI
  • Contribution to notified unit-linked insurance plan of LIC Mutual Fund [Dhanaraksha 1989]
  • Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]
  • Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children
  • Certain payments for purchase/construction of residential house property
  • Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both
  • Sum paid towards notified annuity plan of LIC (New Jeevan Dhara/New Jeevan Dhara-I/New Jeevan Akshay/New Jeevan Akshay-I/New Jeevan Akshay-II/Jeewan Akshay-III plan of LIC) or other insurer
  • Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)
  • Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)
  • Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions
  • Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above.
  • Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.
  • Subscription to notified bonds issued by the NABARD.
  • Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
  • 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)

Section 80CCC (Available to Individuals)
Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer

Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs. 150,000/-.

The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.

Note: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD(1) (combined together) is Rs. 1,50,000/-.

Section 80CCD (Available to Individuals)
For Detailed discussion on Section 80CCD, please refer our article on section 80CCD published on our blog by clicking on the link below

All about 80CCD-NPS

Section 80CCG (Available to specified Resident Individuals)

50 per cent of amount invested by resident individuals, whose gross total income does not exceed Rs. 12 lakhs, in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions). Maximum deduction : Rs. 25,000/-.

Section 80D (Available to Individuals / HUFs) 
Deduction in respect of Medical Insurance

Deduction is available upto Rs. 30,000  for senior citizens and upto Rs. 25,000 in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 30,000 if parents are senior Citizen and Rs. 25,000 in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 60,000/- in case of individuals and Rs. 30,000/- in case of HUFs. Within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.

Section 80DD (Available to Resident Individuals / HUFs)

Deduction available to resident Individual and HUF in respect of Rehabilitation of Handicapped Dependent Relative

Deduction of Rs. 75,000 in respect of

  1. Expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
  2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

Further, if the defendant is a person with severe disability a deduction of Rs. 125,000 shall be available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist. Note: A person with ‘severe disability’ means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the ‘Persons with disabilities (Equal opportunities, protection of rights and full participation)’ Act.

Section 80DDB (Available to Individuals / HUFs)
Deduction allowed to resident Individual and HUF in respect of Medical Expenditure on Self or Dependent Relative

A deduction to the extent of Rs. 40,000/- (Rs. 60,000 in case of senior citizen) or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

Section 80E (Available to Individuals)
Deduction in respect of Interest on Loan for Higher Studies

Deduction in respect of interest on loan taken for pursuing higher education (subject to certain conditions) (maximum period : 8 years).

Section 80EE (Available to Individuals) 
Deduction in respect of Interest on Residential House Property

The deduction under this sub-section is available w.e.f. AY 2014-15. The maximum deduction available is Rs. 1 lac. In a case where the interest payable for the financial year 2013-14 is less than Rs. 1 lac, the balance deduction amount shall be available in AY 2015-16.

The deduction under sub-section (1) shall be subject to the following conditions:

  1. the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;
  2. the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
  • the value of the residential house property does not exceed forty lakh rupees;
  1. the assessee does not own any residential house property on the date of sanction of the loan.

If deduction for Housing Loan Interest is availed under this section, no deduction can be availed for such interest under any other provisions of the Act for the same or any other assessment year.

Section 80G (Available to all assessees)
Deduction in respect of Various Donations

The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G

Section 80GG (Available to Individuals not receiving any house rent allowance)
Deduction in respect of House Rent Paid

Deduction available is the least of

  1. Rent paid less 10% of total income
  2. 2000/- per month i.e.Maximum Deduction available is 24,000/-
  3. 25% of total income, provided
    • Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
    • He should not be in receipt of house rent allowance.
    • He should not have self occupied residential premises in any other place.

Section 80 TTA (Available to Resident Individuals/HUFs)
Deduction from gross total income in respect of any Income by way of Interest on Savings account

Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 01.04.2012 (Assessment Year 2013-14).

Nevertheless, interest earned on savings bank account is also needed to be shown as income while computing taxability of an assessee.

Section 80U (Available to Resident Individuals)
Deduction in respect of Person suffering from Physical Disability

Deduction of Rs. 75,000 to a resident individual who suffers from a physical disability(including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 125,000 shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

Deductions Allowable under Section 24 of Income Tax Act :

Where a housing property has been acquired / constructed / repaired / renewed with borrowed capital, the amount of interest payable yearly on such capital is allowed as deduction under Section 24 of Income Tax Act, subject to the limits stated below. Penal interest on housing loan is not eligible for deduction. If a fresh loan has been raised to repay the original loan and the new loan has been used only for the purpose of repaying the original loan then, the interest accrued on such fresh loan is allowed for deduction.

  1. If the property is acquired or constructed with the capital borrowed on or after 01-04-1999 and such acquisition or construction is completed within 3 years of the end of the financial year in which capital was borrowed then the actual interest payable is allowed as deduction subject to a maximum Rs. 2,00,000.
  2. In other case interest up to maximum Rs. 30,000/- is deductible.
  3. The ceiling of Rs.2,00,000 or Rs. 30,000/- is only in case the property is self occupied. There is no limit on deduction of interest if the property is let out.

 

 

Deduction under Section 80CCD

Section 80CCD provides for Income Tax deductions for contributions made to the notified Pension Scheme of the Central Government 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 made vide Budget 2015 in Section 80CCD

The maximum amount allowed to be invested in National Pension Scheme has been increased  to Rs. 1.5 Lakhs.

Section 80CCD(1B): 

Moreover, in the Budget 2015 a new sub-section 1B 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 assessee 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).

The Deduction allowed under Section 80CCD(2) would be allowed for Employers Contribution up to 10% of the Salary of the Individual.

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.

If the amount received by a taxpayer has been used for purchasing an annuity plan in the same year in the year of receipt, the taxpayer would be deemed to have not received any amount from the NPS Scheme and therefore no tax would be levied on the same.

 

Statutory Compliance Dates for July 2015.

05-07-2015 – (if payment done online then 06-07-2015)- Service Tax / Excise- Quarterly/Monthly Payment.

07-07-2015 – TDS / TCS Monthly Payment .

10-07-2015-  Excise Monthly Return.

15-07-2015-  PF Monthly Payment.

15-07-2015 – TDS/TCS Quarterly Return for the Quarter 01-04-2015 to 30-06-2015.

20-07-2015-  UPVAT / CST Monthly/Quarterly Payment and Monthly/Quarterly Return.

21-07-2015 – ESI Monthly Payment.

25-07-2015 – PF Monthly Return.

30-07-2015 – Issue of TDS / TCS Certificates in respect of Tax Deducted at Source (other than salary) or tax collected between 1-4-2015 and 30-6-2015.

 

CBDT has notified the simplified version of income-tax return forms- ITR-1, ITR-2 and ITR-4S along with new form ITR-2A, for AY 2015-16, after having withdrawn the earlier set of forms notified on April 15, 2015.

The latest new and simplified ITR Forms are finally available here as well as on the income tax site.

In lieu of foreign trip details, newly notified forms seek passport number, “if available”;

New forms exempt disclosure of “dormant” bank accounts details; Further, account balance in bank accounts, now not required to be disclosed.

Expats not required to report foreign asset details, if no income derived from such assets during relevant previous year.

Other disclosure requirements in the newly notified ITR forms largely unchanged vis-à-vis earlier notified forms in April, 2015.

The new ITRs are attached here for ready reference:

Download (PDF, 4.68MB)

Download (PDF, 4.69MB)

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Download (PDF, 853KB)

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