ITR filing date may get extended for AY 2019-20

ITR filing date may get extended for AY 2019-20

Income Tax Return e-Filing for AY 2019-20: The due date for ITR filing may get an extension for the taxpayers to file the returns of income well beyond the last date even without bearing any fine.

ITR Filing 2019-20: Here are 5 important reasons that may make the government extend the ITR filing due date.

The last date for filing income tax return (ITR) for the assessment year 2019-20 with no penalty or a fine is July 31, 2019. However, the due date for ITR filing may get an extension for the taxpayers to file the return of income well beyond the last date even without paying any fine. The ITR filing last date had been extended several times in the previous years for different reasons. However, this time till now, the reasons appear to be related more with the modifications made to the various Forms used during the ITR filing process.

Here are 5 important reasons that may make the government extend the ITR filing due date.

1. Extension of Form 16 issue date

On June 4, 2019, Central Board of Direct Taxes (CBDT) had issued a notification extending the deadline for the employers to issue Form 16 to employees from June 15 to July 10. It has been observed that several employees had still not received Form 16 even after the due date. With only a few days left, if Form 16 is received at a later date, the time to file ITR will understandably be less. “Salaried taxpayers now have a shorter window to file their tax returns due to the extension of the due date of providing Form 16 for employers. In the wake of this extension, the due date for tax filing may be extended so salaried taxpayers can plan to file their tax returns in time,” says Archit Gupta, Founder & CEO ClearTax.

2. Changes in Form 16

There are two parts of Form 16, in which Part A was standardised for all employers but the Part B was not standardised. The new rule asks the employer to ensure generation of accurate TDS certificate in Part B of Form No. 16 As per the new format, every employer is required to report the detailed break-up of salary, exempt allowances and deductions claimed and allowed to an employee.

3. Extension of Form 24Q issue date

The CBDT had also extended the due date of filing of Form 24Q for the financial year 2018-19 from May 31, 2019, to June 30, 2019. The Form 24Q is a quarterly statement of deduction of tax in respect of salary for the four quarters of the financial year and is to be filed by the employer. As per the new rules, the employers have to report correct data in Annexure II of Form 24Q.

4. Verification of pre-filled data

Once Form 16 is received, one needs to ensure if the employer has generated it from the TRACES, the official software of the income tax department. Also, it is important to ensure that the figures in Form 16 and Form 26AS are matching. Lastly, the I-T department has cautioned that the pre-filling of ITR is only for the taxpayer’s convenience. Therefore, as a taxpayer one needs to verify the pre-filled data carefully and add any other taxable income which is not pre-filled.

5. Long term capital gain (LTCG )

The long term capital gain (LTCG ) tax was re-introduced in the FY 2018-19 and assessee were finding it a tad difficult to enter the figures in the software while filing the ITR. “Reporting LTCG on ClearTax is fairly simple since we allow uploading of CAMS report or even an excel file. However, the reporting of LTCG on equity shares has been introduced for the first time, the portal’s reporting section has recently undergone some change too. Those who have not yet finished calculations and made tax payment arising due to gains may need more time,” informs Gupta.

Latest CBDT clarifications

The Income Tax Department has recently issued a clarification from the CBDT that has responded to reports in social media that taxpayers were facing difficulties in the filing of IT Returns in ITR-2 & ITR-3 due to large scale changes in the ITR form. It was made clear by CBDT that no changes have been made in any of the Income-tax Return (ITR) forms including ITR-2 and ITR-3 since the notification made on 1st April 2019 and further clarified that the software utility update is a dynamic process, done continuously based on feedback received from users, to ease filing and that the updating of utility doesn’t hamper filing of ITR as taxpayers are allowed to file using utility which is available at that point of time.

Further, on July 19, CBDT clarified that taxpayers have an option to either enter the Scrip wise details of long term capital gains or enter the self-calculated aggregate value of long term capital gains directly, without entering scripwise details. Taxpayers may exercise either option based on their convenience.

Even though these 5 reasons for an extension exists as of now, the last date for ITR filing may not be extended if things fall in place. It’s always better to not wait for the last minute and file the ITR well in advance.

What Happened if ITR not filed on or before due date // SUNIL RAJAI //MONARCH

What Happened if ITR not filed on or before due date // SUNIL RAJAI //MONARCH

Some of the disadvantages of not filing ITR within due date are as follows.

1. Penalty: If you miss the ITR due date, you have to pay Rs 5,000 penalty (Rs 1,000 if taxable income is less than Rs 5 lakh), provided you file it within December 31. For further delay, you have to pay penalty of Rs 10,000.

2. Interest on tax payable: In case there is tax payable, as per the section 234A of the Income Tax Act, you have to pay penal interest of 1 per cent per month on the amount of unpaid tax till the date of payment of taxes.

3. Prosecution: If you willfully don’t pay tax and don’t file your ITR even after getting notice u/s 142 and 148 of the Income Tax Act, you may face prosecution u/s 276CC of the Act.

4. No carry forward of losses: You can’t carry forward the losses to get it adjusted against profits/gains of future years, if you fail to file your ITR within due date.

5. Trouble in getting refund: If you miss the ITR due date, your Return will be processed late and the refund amount, if any, would be released late.

Sunil Rajai
Monarch Taxfile Group
Surat
www.i-tax.in

From 1st April 100% tax returns will be scrutinise and tax evasion will be history in India.

From 1st April 100% tax returns will be scrutinise and tax evasion will be history in India.

Imagine a Tax tracker software which cost government more than Rs 1000 Crore and several years of building it, just to track expenses of all assesssee based on big data and then suggest department to pick up cases for scrutiny. That’s what India tax department is going to implement from 1 April 2019

Big data Software which can be use to track tax evader is reality for Income Tax department. As per our sources the Income Tax Department has given access to the software on 15 March 2019.

Now if you are travelling foreign county and posting pictures on social media, buying an luxury car and its beyond your income as per your returns filed, then Income Tax Department can use big data to analyse it and check the mismatch between your earning and spending. The process can easily use complete trail for even new tax filer. Also Department can prepare a master file having all details and key information about individuals and corporates.

The basic idea is to catch the tax evaders and also increase number of people to file returns and pay tax, who are not filing returns. The Insight project will feature an integrated information management system, which will harness machine learning to help take the right step and the right time. It will entail collecting relevant web pages and documents that could be probed

India now joins a select league of countries like Belgium, Canada and Australia that are already using big data to keep a check on evasion. It is estimated that in case of Britain launched similar software at estimated cost of 100 million pounds. Since its inception in 2010, the system has prevented the loss of 4.1 billion pounds ($5.4 billion) in revenue. These cases would have mostly remained undetected without cutting-edge analytics.

The software will ensure 100% Scrutiny of all the returns filed and selection based on thousands of small parameters.

No change in dividend distribution tax // MONARCH // SUNIL RAJAI

No change in dividend distribution tax // MONARCH // SUNIL RAJAI

Finance Secretary Subhash Chandra Garg on Friday ruled out any change in the dividend distribution tax, but expressed flexibility that grandfathering tax on buybacks can be discussed with the revenue department.

The key changes in Budget's taxation-related measures affecting the deal market include the extension of buy-back tax-related provision to listed entities. This provision was earlier introduced as an anti-abuse measure to check the practice by unlisted companies to distribute accumulated profits through the buyback route rather than the dividend declaration route, thereby evading dividend distribution tax (DDT).

"There is no change in Dividend Distribution Tax, there is no plan to change it. I am not in a position to say on grandfathering buyback tax, but can discuss it with the revenue department," said Finance Secretary Subhash Chandra Garg at a CII event on Budget discussion.

In the Budget, the government taxed the buyback route to check dividend distribution tax evaders. But Garg offered ways to get out of the tax on buybacks.

"Dividend distribution Tax is going to stay. There is no plan to change. But there is a way if you invest in REIts and InVits (REITs, or real estate investment trusts, or infrastructure investment trusts), there is a way to save from this tax. If it is investment-oriented, then you have a way to be away from DDT ", Garg said.

Finance Minister Nirmala Sitharaman has proposed closing the buyback route used by corporates to avoid paying taxes. Earlier, corporates preferred using the buyback route after the government levied a dividend distribution tax of 10 per cent in 2007, which was further hiked by a similar quantum in 2016.

In the last three years, more than 170 companies, mainly in the IT sector, have bought back shares worth Rs 1.33 lakh crore. A number of IT sector companies, including Infosys, Wipro, and Tata Consultancy Service, have in the recent past announced big buybacks.

Finance Minister Nirmala Sitharaman has now plugged this loophole by taxing buybacks at the rate of 20 per cent, similar to those applicable on unlisted companies.

Taxation of dividends: Dividends paid by a domestic company are subject to Dividend Distribution Tax (DDT) at 15% of the aggregate dividend declared, distributed or paid. The DDT payable is required to be grossed up. The effective rate is 20.3576%, including a 12% surcharge and a 3% education cess.

Garg said the domestic market is crowded due to government borrowings, so, private sector is unable to borrow. If government even borrows 10% from abroad, it will free Rs 70,000 crore for private companies.

He further said a 5 trillion dollar economy is achievable if the economy grows at 8% per annum and with 4% inflation, 12% nominal growth rate, 1-1.5% depreciation of the rupee vis-a-vis dollar value and the growth is doable and pragmatic.

Stressing the continuation of fiscal deficit path of 3.3% , the secretary said the government has opened up many sectors such as insurance and has also raised FPI limits of 24% subject to sectoral caps. The 5 trillion dollar investment path will be led by private sector, he said .

To attract more global investment, the government will consider further opening up of foreign direct investment in aviation, media, animation, and the insurance sector in consultation with stakeholders.

Download TDS TCS chart for A.Y. 2020-2021 // SUNIL RAJAI // MONARCH TAXFILE GROUP SURAT

MONARCH TAX UPDATES:
Download TDS TCS chart
for A.Y. 2020-2021

Download from
Below Link:

http://bit.ly/TdsChart2021

20 Crore PAN Cards to Become Junk After August 31 if Not Linked With Aadhar Number.

MONARCH NEWS UPDATES:
20 Crore PAN Cards to Become Junk After August 31 if Not Linked With Aadhar Number.

Nearly 20 crore Permanent Account Number (PAN) cards will be declared invalid after August 31 if they are not linked with the person's Aadhaar number.

Once the Income Tax Department cancels the PAN card, it cannot be used again. An official of the Central Board of Direct Taxes (CBDT) said that it is not possible that 20 crore PAN card holders in India do not have an Aadhar card. There are 43 crore PAN card holders in India and 120 crore Aadhar holders.

The official also said that anyone who does not own an Aadhar Card yet will get more than 40 days to get the unique number.

The decision was made as a result of reports received by the Income Tax Department about its illegal use for making loans or getting a credit card. Moreover, there are some people who use it as an identity proof in Nepal and Bhutan.

As a result, it is mandatory to link the PAN with Aadhar number, failing to which the PAN card will be invalid from September 1, 2019.

Meanwhile, Finance Minister Nirmala Sitharaman in her Budget speech on Friday said that she was making a proposal to make Aadhar interchangeable with PAN.

MONARCH TAX UPDATES: Download Income-tax Due Date chart of the Monarh of July-2019

MONARCH TAX UPDATES:
Download Income-tax Due Date chart of
the Monarh of July-2019
Below Link:

bit.ly/DueDateJuly2019