IT Department to release all pending refunds upto Rs.5 lacs immediately

In the context of Covid-19 situation and with a view to provide immediate relief to the business entities and individuals, the Income Tax Department has decided to issue all the pending income-tax refunds up to Rs.5 lac, immediately.

Read more at-

https://www.theweek.in/news/biz-tech/2020/04/08/income-tax-dept-to-release-all-pending-refunds-up-to-rs-5-lakh-i.html 

    February 24, 2020

    How to calculate income tax?

    Will you be filing ITR for the first time in 2020? You first need to know your total taxable income, followed by the computation of income tax as per the applicable tax slab. While calculating income tax manually might appear daunting, it isn’t as complicated if you thoroughly understand the computation process.

    Every individual under 60 years with an annual income of more than Rs 2.5 lakh is required to file Income Tax Return (ITR) as per the Income Tax Act. For seniors between 60 and 80 years, this limit is above Rs 3 lakh, and for super seniors above 80 years, it is above Rs 5 lakh. In fact, even people falling under the nil tax bracket are advised to file ITR.

    To successfully and accurately file ITR, one should first know his/her total taxable income for the year. The annual income will decide the tax slab an individual falls under and the rate at which the tax will be calculated. So, how to calculate income tax? Here are the things you should know.

    Different sources of income

    According to the IT Act, an individual can have five different sources of income. They are:

    • Salary – Income earned through salary
    • House property – Generally consists of rental income earned from house property
    • Business or profession – Income earned from business or profession
    • Capital gains – Long-term and short-term capital gains from the sale of capital assets
    • Other sources – All the other incomes, like interest, dividends, taxable gifts, etc. that cannot be categorised under the four sources listed above

    Any income an individual earns can only be categorised under these five sources.

    Computing gross total income and claiming deductions

    The Gross Total Income (GTI) is calculated by setting off any losses under any of the income heads and then adding the income from all the five sources. Once you have the GTI, the next step is to claim relevant deductions from the income.

    Chapter VI-A of the IT Act offers a wide range of deductions from Section 80C to Section 80U. You can claim deductions under relevant sections, and this will help you reduce your GTI and the income tax you are required to pay.

    Understanding income tax slabs

    The GTI left after claiming deductions will be your total taxable income for the year. Income tax slabs in India are divided based on income in the financial year. The income range also differs for different age groups. There are three different age groups:

    • Under 60 years
    • Between 60 and 80 years
    • Above 80 years

    For instance, for an individual under 60 years, the tax slabs are as follows:

    Tax slabsTax rates
    Annual income of up to Rs 2.5 lakhNil
    Annual income between Rs 2.5 lakh and Rs 5 lakh5% tax on the income above Rs 2.5 lakh + 4% cess
    Annual income between Rs 5 lakh and Rs 10 lakhRs 12,500 + 20% tax on the income above Rs 5 lakh + 4% cess
    Annual income above Rs 10 lakhRs 1,12,500 + 30% tax on the income above Rs 10 lakh + 4% cess

    Based on your total taxable income and income tax slab, you can calculate your tax liability. For instance, if your taxable income is Rs 800,000, income tax computation will be as follows:

    Taxable incomeRs 8,00,000
    Income tax on income of up to Rs 2.5 lakhRs 0 (nil income tax for income of up to Rs 2.5 lakh)
    Income tax on income from Rs 2.5 lakh to Rs 5 lakhRs 12,500 (5% of Rs 2.5 lakh as income is above Rs 5 lakh)
    Income tax on income between Rs 5 lakh and Rs 10 lakhRs 60,000 (20% of income above Rs 5 lakh, which is Rs 3 lakh in this case)
    Total income tax liabilityRs 72,500

    There is also a 4% cess applicable to the tax amount. So, the total tax liability of an individual with a taxable income of Rs 8 lakh is Rs 75,400 [Rs 72,500 + Rs 2,900 (4% of Rs 72,500)].

    Filing ITR

    Now that you know how income tax is calculated, the next step is to file ITR. By filing ITR, you will know whether you are eligible for a tax refund or need to pay additional taxes. You can compare your income tax liability with the income tax already paid in the form of Tax Deducted at Source (TDS)/Tax Collected at Source (TCS), advance tax or self-assessment tax.

    If the total tax paid is higher than your tax liability, you will be eligible for a tax refund. If the tax liability is higher than what is already paid, you can pay the difference while filing ITR.

    Calculating your income tax liability

    While the manual calculation of income tax is manageable if you have a single source of income and not claiming deductions, things can get challenging for multiple income sources and deductions. In such cases, you can consider using an online income tax calculator.

    The calculator will allow you to add income from all the different sources and claim all the relevant deductions, making it easier for you to know your income tax liability. Moreover, the calculation will also be quick and free from errors that manual calculations are generally prone to.

    DISCLAIMER

    The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient’s own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. ‘lClCl ‘ and the ‘I-man’ logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited

    https://www.icicibank.com/blogs/taxation/how-to-calculate-income-tax.page?

    Perform the following steps to view or download the Form-26AS from e-Filing portal:

    1. Logon to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
    2. Go to the ‘My Account’ menu, click ‘View Form 26AS (Tax Credit)’ link.
    3. Read the disclaimer, click ‘Confirm’ and the user will be redirected to TDS-CPC Portal.
    4. In the TDS-CPC Portal, Agree the acceptance of usage. Click ‘Proceed’.
    5. Click ‘View Tax Credit (Form 26AS)’
    6. Select the ‘Assessment Year’ and ‘View type’ (HTML, Text or PDF)
    7. Click ‘View / Download’
      Note
      To export the Tax Credit Statement as PDF, view it as HTML > click on ‘Export as PDF’. ​

    Go to https://incometaxindiaefiling.gov.in​ ​​​​​

    The Taxpayer can submit the response online to the outstanding demand by either choosing to ‘Agree’ or ‘Disagree’ with the demand.

    Perform the following steps for Responding to the Outstanding Demand.

    1. Logon to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
    2. Go to the ‘e-File’ menu and Click ‘Response to Outstanding Demand’
    3. Click the hyperlink ‘Submit’ located under ‘Response’ column (To respond for the Outstanding Demand)
    4. Choose any one of the listed responses.
      • Demand is correct
      • Demand is partially correct
      • Disagree with demand
      • Demand is not correct but agree for adjustment
      • On choosing ‘Demand is correct’, click on ‘Submit’ button to ‘Confirm’ and complete the response submission process.
        Note:
        • If you confirm ‘Demand is correct’ then you cannot disagree with the demand again.
        • If any refund is due, the refund will be adjusted against the outstanding demand.
        • The taxpayer can pay the demand by clicking the link under ‘Pay Tax’ option.
      • On choosing ‘Demand is partially correct’, Enter the ‘Amount which is correct’ and the ‘Amount which is incorrect’ will be auto filled. Select the appropriate reason(s) from the list and fill all the applicable fields, upload the necessary supporting documents and ‘Submit’ the response.
      • On choosing ‘Disagree with demand’, Select the appropriate reason(s) from the list and fill all the applicable fields, upload the necessary supporting documents and ‘Submit’ the response.
      • On choosing ‘Demand is not correct but agree for adjustment’, Select the appropriate reason(s) from the list and fill all the applicable fields, upload the necessary supporting documents and ‘Submit’ the response.
        • List of Reasons and the additional details required on selecting each reasons.
        ReasonsAdditional Details RequiredDemand paid and Challan has CINBSR CodeDate of paymentSerial NumberAmountRemarksDemand paid and Challan has no CINDate of paymentAmountRemarksUpload copy of ChallanDemand already reduced by rectification / Revision/ Appellate OrderDate of OrderDemand after rectification/ revision/AppealDetails of AOUpload Rectification / revision/ Giving appeal effect order passed by AODemand already reduced by Appellate Order but appeal effect to be givenDate of OrderOrder passed byReference Number of OrderAppeal has been filed – Stay petition filedDate of filing of appealAppeal Pending withStay petition filed withAppeal has been filed – Stay grantedDate of filing of appealAppeal Pending withStay granted byUpload copy of StayAppeal has been filed – Instalment grantedDate of filing of appealAppeal Pending withInstalment granted byUpload copy of instalment orderRectification / Revised Return filed at CPCFiling Typee-Filed Acknowledgement Number.RemarksUpload Challan CopyUpload TDS CertificateUpload Letter requesting for rectificationUpload Indemnity BondRectification filed with AODate of applicationRemarksOthersOthers
    5. A success message along with Transaction ID is displayed on successful submission of the response.
      Note :
      • To View the submitted response go to ‘e-File’ > ‘Response to Outstanding Demand’ and click on the ‘View’ link under the ‘Response’ column and in the new page click on the ‘Transaction Id’ hyperlink.
      • For the demand which is shown to be uploaded by AO, then the rectification right is with Assessing Officer and for the demand against which there is no ‘Submit’ response available is already confirmed by the Assessing Officer. Kindly contact your jurisdictional Assessing Officer for clarification. ​

    Go to https://incometaxindiaefiling.gov.in​ ​​​​

    Prerequisite for Individual Users

    Before taxpayers start registration, ensure the following details should be hand-in-hand.

    1. Valid PAN
    2. Valid Mobile Number
    3. Valid Current Address
    4. Valid Email Address, preferably your own

    Registration Process

    Perform the following steps to register as an ‘Individual User’:

    1. Visit the ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
    2. Click ‘Register Yourself’ button located at right side of the Home Page.
    3. Select the user type as ‘Individual’. Click Continue
    4. Provide the following basic details:
      • PAN
      • Surname, First Name and Middle Name
      • Date of birth
      • Residential Status
    5. Click ‘Continue’
    6. Fill in the following mandatory details:
      • Password Details
      • Contact Details
      • Current Address
      • Click ‘Submit’
    7. After registration,
      For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at the time of registration.
      For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.
    8. Enter the correct OTP to complete the registration process

    2) Prerequisite for HUF

    The user must have the following mandatory details:

    1. Valid PAN Card
    2. Valid Mobile Number
    3. Valid Email Address, preferable belonging to KARTA*

    *Karta means senior most male member in the family. He is the person who takes care of day to day expenses of the family looks after the family and protects the joint family properties. No outsider or stranger can become a Karta.

    Registration Process

    Perform the following steps to register as a ‘HUF User’:

    1. Visit the ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
    2. Click ‘Register Yourself’ button located at right side of the Home Page.
    3. Select the user type as ‘Hindu Undivided Family (HUF)’. Click Continue
    4. Provide PAN of the HUF*’, ‘Name of HUF*’, and ‘Date of Incorporation*
    5. Click ‘Continue’
    6. Fill in the following details:
      • Password Details
      • PAN Details of Karta
      • Contact Details of Karta
      • Address of HUF
      • Click ‘Submit’
    7. After registration,
      For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at the time of registration.
      For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.
    8. Enter the correct OTP to complete the registration process

    3) Other than Individual and HUF

    The user must have the following mandatory details:

    1. Valid PAN Card
    2. Valid Mobile Number
    3. Valid Email Address, preferably belonging to Principal contact person

    Registration Process

    Perform the following steps to register as an ‘Other than Individual and HUF User’:

    1. Visit the ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
    2. Click ‘Register Yourself’ button located at right side of the Home Page.
    3. Select the ‘User Type’ as ‘Other than individual/HUF’ and select the ‘Sub-User type’ as per the PAN.
      • Company
      • Body of Individuals (BOI)
      • Local Authority
      • Firm
      • Trust
      • Association of Persons (AOP)
      • Artificial Juridical Person
      • Government
      • Click Continue
    4. Provide ‘PAN of the Organisation/Entity*’‘Organisation Name*’‘Date of Incorporation*’.
      In case of ‘Company’ user, select the ‘Type of company’
    5. Click ‘Continue’
    6. Fill in the following details:
      • Password Details
      • Personal Details of Principal Contact
      • Contact Details of Principal Contact
      • Address of Organisation/Entity
      • Click ‘Submit’
    7. After registration,
      For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at the time of registration.
      For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.
    8. Enter the correct OTP to complete the registration process
    9. https://www.incometaxindia.gov.in/Pages/tax-services/registration-e-filing.aspx

    4 March 2020

    Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 4th March, 2020 PRESS RELEASE TDS Surveys by Income Tax Department unearths huge defaults in deduction and deposit In a major breakthrough, the TDS wing of the Income Tax Department has unearthed default of tax deducted at source (TDS) of Rs. 324 crore in the case of a major Telecom Operator in Delhi. The company did not make the required TDS of 10% u/s 194J of the Income-tax Act, 1961 on technical contracts worth Rs. 4000 crore. The amount is further liable to go up once the enquiry is completed. Several hospitals of the city were found openly flouting the norms of TDS and tax collected at source (TCS) and were paying less tax to the Income Tax Department. During the survey, at two premier hospitals, one with more than 2500 bed capacity and the other with 700 bed capacity, it was found that the former was not making any TDS on construction contracts as statutorily required u/s 194C/ 194J, while the latter was deducting tax at the rate of 10% only on salary paid to the doctors, instead of the present TDS rate of 30% applicable for salary payments. Enquiries during the survey revealed that the terms of appointment between the hospital and the doctors indicated an employer-employee relationship on which the hospital was required to deduct tax at 30% instead of 10% as was being made by the hospital. TDS defaults of Rs. 70 crore and Rs. 20 crore respectively were detected in the said hospitals. Further enquiry revealed that the hospitals were also not making the required TDS at 10% from the maintenance charges paid for the hitech sophisticated operation theatre and diagnostic equipments. Furthermore, it was seen that many hospitals were still not complying with the TCS norms which came into effect from June 1, 2016 under which, on any cash payment received in excess of Rs. 2 lakh, the hospital was required to collect TCS @1% and deposit it to the Government account. In another TDS survey conducted on a prominent Real Estate Group in Delhi in the first week of the March, 2020, after credible data analysis of previous years, analysis of TDS compliance patterns by the various group companies, their ITR filings and tax auditor reports and real time data generated by CPC-TDS, it was seen that the deductor having already deducted tax in earlier years, had not deposited the deducted taxes in government account. During the survey, verification and analysis indicated outstanding TDS liability and interest payable of Rs. 214 crore. Major TDS default related to the payment of interest on outstanding loans. The Real Estate Company had taken huge loans on which interest payments were credited from time to time, TDS was duly deducted during various financial years but was not deposited to Government account. Since it was a case of non-compliance, interest at the rate of 1.5% for every month or part of the month is to be paid from the date on which such tax is deducted to the date on which such tax is actually deposited to Government account. In another action by the TDS Wing of the Department, TDS default of approximately Rs. 3200 crore was detected in the case of a major oil company pursuant to survey u/s 133A of the Act. The defaults included short deduction of tax and non deduction of tax respectively. Short deduction of tax pertained to TDS u/s 194J for several years on payment of Fee for Technical Services for installation and maintenance of high tech oil refineries, payments for chemical process of regasification and transportation of LNG. Default of non deduction was detected on composite contracts involving service and purchase of products on which TDS @2% should have been deducted but which was not deducted resulting in the said default. The Income Tax Department has, in recent times, stepped up enforcement action against TDS default cases as this category of revenue contributes to over 45% of the total direct tax collection in the country. As per Rules, the TDS has to be paid to the credit of the central government within seven days from the end of the month in which the deduction is made.

    https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/828/PressRelease_TDS_Surveys_by_ITD_4_3_20.pdf