What is GST? What is GST? GST is one tax on supply of goods or services. It applies from the manufacturer to the end consumer. GST is a single tax on the supply of goods and services. Credits for input taxes paid at each stage are available at the next stage of value-addition. This makes GST an exclusive tax on each stage's value-addition.
In the complex and ever-changing landscape of Indian taxation, navigating the intricacies of indirect taxation requires expertise, insight, and a deep understanding of regulatory frameworks. As a leading accounting and advisory firm, Neeraj Bhagat & Co. is committed to providing clients with comprehensive guidance and strategic solutions to effectively manage their indirect tax obligations in India.
Here's a closer look at the nuances of indirect taxation in India and how Neeraj Bhagat & Co. can help businesses navigate this challenging terrain:
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Understanding Indirect Taxation in India:
Indirect taxation in India encompasses a wide range of taxes levied on goods and services at various stages of production, distribution, and consumption. Some of the key components of indirect taxation in India include:
1. Goods and Services Tax (GST): Introduced in 2017, GST is a comprehensive indirect tax levied on the supply of goods and services across India. It replaced a multitude of indirect taxes, including central excise duty, service tax, and value-added tax (VAT), bringing about significant reforms in the Indian tax landscape. GST is governed by a dual structure, with both the central and state governments having the authority to levy and administer GST on intra-state and inter-state supplies.
2. Customs Duties: Customs duties are levied on the import and export of goods into and out of India. These duties include basic customs duty, additional customs duty (countervailing duty), and special additional duty. Customs duties play a crucial role in regulating trade, protecting domestic industries, and generating revenue for the government.
3. Excise Duties: Excise duties are indirect taxes levied on the manufacture or production of goods in India. These duties are imposed at the point of manufacture and are typically included in the price of the goods. Excise duties are levied by the central government and are an important source of revenue for the exchequer.
How Neeraj Bhagat & Co. Can Help:
1. Compliance Management: Neeraj Bhagat & Co. provides end-to-end compliance management services to help businesses meet their indirect tax obligations in India. Our team assists clients with GST registration, filing of returns, reconciliation of credits, and compliance with customs and excise duty regulations.
2. Advisory Services: Our experts offer strategic advisory services to help businesses optimize their indirect tax strategy, minimize tax liabilities, and ensure compliance with regulatory requirements. We provide insights into the latest developments in Indirect taxation in India, including changes in GST rates, exemptions, and compliance procedures.
3. Representation and Advocacy: Neeraj Bhagat & Co. represents clients before tax authorities and appellate forums, helping them navigate disputes, audits, and assessments related to Indirect taxation in India. Our team advocates on behalf of clients to ensure fair treatment and resolution of tax issues.
4.Technology Solutions: We leverage technology-driven solutions to streamline tax compliance processes, enhance accuracy, and improve efficiency. Our advanced software tools and platforms enable clients to manage their indirect tax obligations more effectively, reducing manual errors and ensuring timely compliance.
5. Training and Education: Neeraj Bhagat & Co. offers training and education programs to help clients understand the intricacies of Indirect taxation in India. Our workshops and seminars cover topics such as GST compliance, customs and excise duties, and recent developments in indirect tax laws.
Conclusion:
Navigating indirect taxation in India requires a deep understanding of regulatory requirements, compliance procedures, and strategic considerations. With Neeraj Bhagat & Co. as your trusted partner, you can gain access to expert guidance, insights, and solutions to effectively manage your indirect tax obligations and achieve your business objectives with confidence.
Contact us today to learn more about our Indirect taxation in India services and how we can help your business thrive in the complex Indian tax landscape.
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GST Discounts on Products In the domain of worldwide exchange, the Labor and Products Duty (GST) has achieved a progressive change, smoothing out processes and advancing the simplicity of carrying on with work. The ability to claim GST refunds on exports is one of the main benefits of GST for exporters. Let's go on a journey to learn the ins and outs of this process. 1. Eligibility Requirements to Make a GST Refund Claim on an Export Exporters are eligible to make a GST refund claim on an export if they meet certain eligibility requirements. To be qualified, an exporter must: have exported goods or services, even if they were deemed to be exported. Have substantial GST enrollment. Have paid IGST (Integrated GST) on exports or accumulated input tax credit (ITC) on input and input services, and submit a valid GSTR-3B return. 2. Sending out Labor and products under GST Sending out under GST envelops both the actual development of merchandise across borders as well as the stock of administrations to an unfamiliar element. Trades are treated as "zero-evaluated supplies," suggesting that the sent-out merchandise/administrations are charged an ostensible GST pace of 0%. This is finished to advance seriousness in the global market and forestall the twofold tax collection from labor and products. 3. GST Discount Cycle for Exporters The most common way of asserting GST discounts on trades includes the accompanying advances: Exporters are required to submit Form GSTR-1 detailing their exports. The beneficiary of the products/administrations ought to affirm the receipt by recognizing the subtleties referenced in the GSTR-2A structure. Exporters then, at that point, need to outfit Structure GSTR-3B, including the subtleties of their commodities. The discount sum will be credited to the ledger of the exporter after a due check by the duty specialists. 4. Documents to Attach for Export GST Refunds When applying for an export GST refund, exporters are required to attach a set of supporting documents. The most common of these are Copies of the export or shipping bill. Duplicate of the commodity receipt. Duplicate of the pertinent bank acknowledgment testament. A statement affirming that the ITC has not been guaranteed. Some other reports as determined by the specialists. 5. Correction on Form GSTR-1 Exporters can make corrections on subsequent returns if there are inconsistencies or modifications required on the Form GSTR-1 after it has been submitted. The accuracy of the export details can be ensured by making corrections to the data in subsequent GSTR-1 returns. 6. Changes or corrections to Form GSTR-3B can be made in subsequent months if they are required after the form has been submitted. This adaptability permits exporters to correct any blunders or errors that might have emerged during the underlying recording. In conclusion, the export GST refund system is an important incentive for exporters that helps international trade grow. By zero rating sent out, GST guarantees that Indian labor and products stay serious on the worldwide stage. Nonetheless, exporters should comply with the specified strategies and rules to guarantee their discounts effectively. The smoothed-out process benefits organizations as well as adds to the country's economy by supporting products and upgrading exchange connections around the world.
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GST Registration services provided by Neeraj Bhagat & Co. We offer GST registration services in New Delhi, and GST consultants in Mumbai, Gurgaon, Banglore, and Chennai.
GST Refunds for Exports The Goods and Services Tax (GST) has revolutionized international trade by streamlining procedures and making doing business easier. The ability to claim GST refunds on exports is one of the main benefits of GST for exporters. Let's go on a journey to learn the ins and outs of this process.
1. Eligibility Requirements to Make a GST Refund Claim on an Export Exporters are eligible to make a GST refund claim on an export if they meet certain eligibility requirements. To be qualified, an exporter must:
have exported goods or services, even if they were deemed to be exported.
Have substantial GST enrollment.
Have paid IGST (Integrated GST) on exports or accumulated input tax credit (ITC) on input and input services, and submit a valid GSTR-3B return.
2. Exporting Goods and Services Under GST The supply of services to a foreign entity and the physical movement of goods across borders are both included in exporting under GST. The term "zero-rated supplies" refers to the treatment of exports, implying that the exported goods and services are subject to a nominal GST rate of 0%. This is done to avoid double taxation of goods or services and to boost competitiveness in the global market.
3. GST Discount Interaction for Exporters
The most common way of guaranteeing GST discounts on trades includes the accompanying advances:
Exporters need to record Structure GSTR-1, showing the subtleties of their products.
The details provided on the GSTR-2A form should be acknowledged by the recipient of the goods or services to confirm receipt.
Exporters then need to outfit Structure GSTR-3B, including the subtleties of their products.
After thorough verification by the tax authorities, the exporter's bank account will receive the refund.
4. Records to be Joined for GST Discounts on Commodity
While applying for a GST discount on sends out, exporters are expected to present a bunch of reports to help their case. The most common of these are:
Copy of the export or shipping bill.
A duplicate of the export invoice
Duplicate of the important bank acknowledgment declaration.
A statement affirming that the ITC has not been guaranteed.
any additional documents that the authorities specify.
5. Correction on Form GSTR-1 Exporters can make corrections on subsequent returns if there are inconsistencies or modifications required on the Form GSTR-1 after it has been submitted. Adjustments connected with send-out information can be made in resulting GSTR-1 returns, guaranteeing exactness in the product subtleties.
6. Changes or corrections to Form GSTR-3B can be made in subsequent months if they are required after the form has been submitted. Exporters can correct any mistakes or inconsistencies that may have occurred during the initial filing thanks to this adaptability.
In conclusion, the export GST refund system is an important incentive for exporters that helps international trade grow. GST ensures that Indian goods and services remain globally competitive by zeroing out exports. However, in order for exporters to successfully claim their refunds, they must adhere to the specified procedures and guidelines. Businesses benefit from the simplified procedure as well as the nation's economy by increasing exports and strengthening international trade relationships.
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The Importance of Accurate ITR Filing: A Comprehensive Guide with FAQ
Introduction: Filing your income tax return (ITR) accurately is a vital financial responsibility that individuals and businesses must fulfill. Accurate ITR filing not only ensures compliance with the law but also offers numerous benefits such as avoiding penalties, establishing financial credibility, claiming refunds, and providing a transparent record of your financial activities. In this blog post, we will delve into the significance of accurate ITR filing, addressing frequently asked questions along the way.
FAQ
Q1: What is an income tax return (ITR)?
A1: An income tax return is a document filed with the tax authorities, such as the Internal Revenue Service (IRS) in the United States or the Income Tax Department in India, which declares the taxpayer’s income, deductions, and tax liability for a particular financial year.
Q2: Why is accurate ITR filing important?
A2: Accurate ITR filing holds significant importance due to the following reasons:
Compliance with the law: Filing your ITR accurately ensures compliance with tax laws and regulations. Failure to file or provide incorrect information may result in penalties, fines, or even legal consequences.
Avoiding penalties and interest: Accurate ITR filing enables you to avoid penalties and interest that may be imposed by tax authorities for late or incorrect filing. These penalties can be substantial and can adversely affect your finances.
Establishing financial credibility: Accurate ITR filing contributes to establishing your financial credibility. It provides an official record of your income and tax payments, which can be useful when applying for loans, mortgages, or visas.
Claiming refunds: If you have paid excess taxes throughout the year, accurate ITR filing allows you to claim a refund. Filing inaccurately may lead to delays or denials in receiving the refund you are entitled to.
Audit and scrutiny avoidance: Filing your ITR accurately reduces the likelihood of being selected for an audit or scrutiny by tax authorities. Inaccurate or suspicious filings may attract scrutiny, potentially leading to investigations and further penalties.
Q3: What are the key steps to ensure accurate ITR filing?
A3: To ensure accurate ITR filing, follow these key steps:
Organize your financial documents: Gather all the necessary financial documents such as income statements, Form 16 (for salaried employees), bank statements, investment proofs, and deduction receipts.
Choose the correct ITR form: Different ITR forms cater to various types of taxpayers, such as individuals, businesses, and companies. Select the appropriate form that aligns with your income sources and filing status.
Accurately report your income: Carefully report all your income from various sources, including salary, rental income, capital gains, and interest. Ensure you disclose all the relevant income and avoid underreporting or concealing any income.
Deduction and exemption claims: Identify and claim eligible deductions and exemptions to reduce your taxable income. Common deductions include those related to home loans, education, medical expenses, and investments in tax-saving instruments.
Maintain documentation: Keep a well-organized record of all the supporting documents, such as receipts, bills, and investment proofs. These documents act as evidence in case of any audit or scrutiny.
Review before submission: Before filing your ITR, carefully review all the details, cross-checking the figures and ensuring accuracy. Even a minor error could lead to complications or penalties.
Q4: Are there any consequences of inaccurate ITR filing?
A4: Yes, inaccurate ITR filing can have several consequences:
Penalties and interest: Tax authorities may impose penalties and interest on underreported income, concealment, or incorrect filing. These penalties can be a percentage of the tax due or a fixed amount, depending on the jurisdiction.
Legal consequences: In severe cases of deliberate tax evasion or fraudulent filing, individuals may face legal consequences such as prosecution, fines, or imprisonment.
Refund delays or denials: Inaccurate ITR filing may result in delays or denials of refunds, causing financial inconvenience.
Damage to financial reputation: Inaccurate filings can damage your financial reputation and credibility, affecting future financial transactions such as loan approvals or business partnerships.
Conclusion: Accurate ITR filing is of paramount importance for individuals and businesses alike. By adhering to tax laws, accurately reporting income, claiming eligible deductions, and maintaining proper documentation, you can ensure compliance, avoid penalties, establish financial credibility, and reap the benefits offered by accurate ITR filing. Remember to review your filing details before submission and consult with a tax professional if needed to ensure accurate and hassle-free tax compliance.
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GST Registration Services provided by Neeraj Bhagat & Co. We offer GST registration services in New Delhi, and GST Consultants in Mumbai, Gurgaon, Banglore, and Chennai.
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GST (Goods and Services Tax) registration is a crucial requirement for businesses operating in many countries, including India. It grants the businesses legal recognition and allows them to collect and remit taxes on behalf of the government. However, there are instances where GST registration may get suspended due to various reasons. In this blog post, we will explore some common factors that can lead to the suspension of your GST registration and discuss how to avoid such situations.
Non-compliance with GST Regulations: One of the primary reasons for GST registration suspension is non-compliance with the GST regulations and guidelines set by the tax authorities. Failure to file regular returns, provide accurate information, or maintain proper records can trigger an investigation and potential suspension of your registration.
Non-filing of Returns: Timely filing of GST returns is crucial to maintain a valid registration. If you consistently fail to file your returns within the prescribed due dates, it can raise red flags and result in suspension. Ensure you stay updated with the return filing requirements and adhere to the deadlines to avoid any interruptions in your GST registration.
Inaccurate or Incomplete Information: Providing incorrect or incomplete information during the GST registration process or subsequent amendments can be another reason for suspension. It is essential to provide accurate details about your business, such as the nature of goods/services, turnover, and other relevant information. Any discrepancies or false information may lead to registration suspension.
Discrepancies in Tax Payments: GST registration can be suspended if there are discrepancies or inconsistencies in tax payments. This includes instances where the tax liability is not paid correctly or when there are delays in making payments. Regularly reconcile your tax liability and ensure timely payment to avoid any issues with your registration.
Failure to Respond to Notices: Ignoring or not responding to notices issued by the tax authorities can have serious consequences, including suspension of your GST registration. It is crucial to address any communication or queries from the authorities promptly. Stay vigilant and maintain proper communication channels to resolve any concerns raised by the tax department.
Engaging in Fraudulent Activities: Participating in fraudulent activities, such as issuing fake invoices, engaging in tax evasion, or misusing the GST system, can lead to immediate suspension of your registration. Authorities have stringent measures in place to detect and take action against such activities. It is essential to maintain transparency and integrity in your business operations to avoid falling into such situations.
Conclusion: Maintaining a valid GST registration is crucial for businesses to operate legally and smoothly. By being aware of the potential reasons that can lead to the suspension of your GST registration, you can take proactive measures to ensure compliance with the regulations. Stay updated with the GST guidelines, file returns on time, provide accurate information, and promptly address any notices or concerns from the authorities. By doing so, you can safeguard your GST registration and continue to run your business smoothly within the legal framework.
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Non-compliance with GST Regulations: One of the primary reasons for GST registration suspension is non-compliance with the GST regulations and guidelines set by the tax authorities. Failure to file regular returns, provide accurate information, or maintain proper records can trigger an investigation and potential suspension of your registration.
Non-filing of Returns: Timely filing of GST returns is crucial to maintain a valid registration. If you consistently fail to file your returns within the prescribed due dates, it can raise red flags and result in suspension. Ensure you stay updated with the return filing requirements and adhere to the deadlines to avoid any interruptions in your GST registration.
Inaccurate or Incomplete Information: Providing incorrect or incomplete information during the GST registration process or subsequent amendments can be another reason for suspension. It is essential to provide accurate details about your business, such as the nature of goods/services, turnover, and other relevant information. Any discrepancies or false information may lead to registration suspension.
Discrepancies in Tax Payments: GST registration can be suspended if there are discrepancies or inconsistencies in tax payments. This includes instances where the tax liability is not paid correctly or when there are delays in making payments. Regularly reconcile your tax liability and ensure timely payment to avoid any issues with your registration.
Failure to Respond to Notices: Ignoring or not responding to notices issued by the tax authorities can have serious consequences, including suspension of your GST registration. It is crucial to address any communication or queries from the authorities promptly. Stay vigilant and maintain proper communication channels to resolve any concerns raised by the tax department.
Engaging in Fraudulent Activities: Participating in fraudulent activities, such as issuing fake invoices, engaging in tax evasion, or misusing the GST system, can lead to immediate suspension of your registration. Authorities have stringent measures in place to detect and take action against such activities. It is essential to maintain transparency and integrity in your business operations to avoid falling into such situations.
Conclusion: Maintaining a valid GST registration is crucial for businesses to operate legally and smoothly. By being aware of the potential reasons that can lead to the suspension of your GST registration, you can take proactive measures to ensure compliance with the regulations. Stay updated with the GST guidelines, file returns on time, provide accurate information, and promptly address any notices or concerns from the authorities. By doing so, you can safeguard your GST registration and continue to run your business smoothly within the legal framework.
In a variety of sections of the income tax law, a home loan or a housing loan may be used to get the of the following deductions from your total income
Section 24:All homebuyers can take advantage of a deduction amounting up to 2 lakh under the heading of "House property," said Ruchika Bhagat, MD, Neeraj Bhagat & Co. If the property is an unlet-out property i.e. you can waive the cost of interest.
Section 80C: Homebuyers may claim an exemption for principal repaymentand tax deductions for registration and stamp duty costs of a let-out property or self-occupied home under Section 80C. The maximum amount is however 1.5 lakh.
Section 80EE: Additional tax deductions under Section 80EE are granted to buyers of homes to a maximum amount of Rs 50 000. But, this deduction is available only if the total amount of loan is 35 lakh or lesser and the property's worth does not exceed 50 lakh. Additionally, the loan must have been approved from April 1st, 2016 until March 31, 2017.
Section 80EEA: Under the law, new homebuyers , after having exhausted their allowance under Section 24 may take advantage of deductions on home loans for low-cost housing, with a maximum of the amount of 1.50 lakh. The stamp duty on the property must not exceed 45 lakh as per this clause. A homebuyer who is in receipt of Section 80EE benefits cannot be eligible for benefits under Section 80EEA.
A deduction for home loan that is joint
When the loans are taken out jointly and the two co-owners of the home, each holder of the loan is entitled to a deduction of home loan interest of up to Rs . 2 lakh per annum and principal repayment under Section 80C , up to 1.5 lakh in the tax return of their respective taxpayers.
Sections 5 and Section 6 in Section 5 and 6 of the Income Tax Act, 1961 are the primary sections for taxes on income for any taxpayer who is in India. Section 5 under the Income Tax Act deals with the "Scope of income" while section 6 assists in determining the residence status of any taxpayer living in India. The determination of the status of a resident in Section 5 of the Income Tax Act plays an important part in determining whether an individual's income is tax-deductible within India as well. This article we will review the guidelines for the determination of the residential status of an individual taxpayer. We will also review different changes to the residential status that were that were made by the Finance Act, 2021 & 2022. The purpose of determining the residence status. Determining residence status of an assessee is the most important job for determining the tax-free income of this assessee in India. In accordance with section 6 of the law, the residence status of any taxpayer is divided into two categories: (a) Resident (b) Non-Resident. In the case of an individual being individual assessment, the resident could also be classified under "Resident and ordinarily resident" (ROR) as well as "Resident But non-resident ordinarily" (RNOR). In the case of other individuals there are two kinds of categories, i.e. residents and those who are not. Section 6(1): BASIC CONDITIONS to be categorized as Resident.
A person is considered to have resided in India during any year prior to that in the event that he:
In order to achieve this for the above purpose, the period for the purpose of staying in India includes the date on which the person arrives or leaves India.
In another way, an individual is considered to be a resident in India when he meets either two C1. C1 is a fairly simple text. One must determine whether he's been in India in the past calendar year, for greater than 180 days, or not. If he was able to stay in India, then he is a in India. In the event that he is not resident, he will need to go through C2 for the determination of his residential status. C2 lays out two conditions that must be met to declare an individual a resident in the preceding year. First, we must determine if the duration of residence in India is 60 or more days in the course of the entire year. If the first requirement is met then we should verify that the period of time spent in India over the preceding four years was 365 days or more. If both these requirements are true, then he is classified as a resident. If the C1 and C2 conditions are not fulfilled the applicant will be regarded as a non-resident for the previous year. In addition, according to the explanation in section 6, just C1 is applicable, and it is not necessary to look for the requirements as stated on C2 which is described in the following order:
Furthermore, the Finance Act, 2020 has included provisions that any person is a citizen of India and is not subject to tax in another country is deemed to reside of India. The requirement for deemed resident status only applies when the total amount of income (other that foreign sources) exceeds the threshold of Rs 15 lakh , and there is no tax obligation in any other country or territories due to the place of residence or domicile, or any other criteria that is similar to in nature. This provision was introduced after it was realized that some individuals were taking advantage of this relaxation as a tax-evasion measures and were planning to visits and stays in India in order to not meet the minimum that is 182 calendar days. Section 6(6): ADDITIONAL CONDITIONS For RNOR/ROR If a person is declared a resident, we must verify whether the individual is as ordinarily resident in India (ROR) as well as is not normally living in India (NOR). To be considered to be RNOR further conditions must be fulfilled, which are as follows:
If an individual meets any of the requirements C3 or C4 it is considered to be a 'not ordinarily resident' in the previous year. If not the person will be treated as a normal resident.
To conclude the previous important to know the residence status of an individual has to be evaluated for every prior year. Before determining the tax obligation of an individual it is necessary to first determine his residency status to be able to accurately determine the amount of taxes owed to him from different sources.
It is likely that you will have to pay up to Rs. 5k penalty if you fail to meet the deadline to check the tax returns you file unless you have filed a late ITR and are required to pay penalty for any reason.
The Income Tax department has reduced the period for confirming ITR from 120 days after the date of the filing of ITR before by 30 days. In a notice published on July 29, 2022 the Central Board of Direct Taxes (CBDT) declared that the new rule on ITR verification will take effect beginning on August 1 20 ..
The CBDT announcement also noted that the time limitation of 30 days applies to ITRs that were filed following August 1st, 2022. for those who have submitted ITRs prior to July 31st, 2022, the time frame for confirming is 120 days.
The most recent notice from CBDT further states that if a person verifies the ITR within the period of 30 days (i.e. the new deadline) In such instances, the date of the e-verification/ITR-V submission will be considered as the date of submitting the return of income. ..
Three scenarios are discussed in relation with ITR submission and confirmation.
Condition 1:If you submitted your tax return prior to the deadline of July 31, 2022 , for FY 2021-22, then you are given 120 days in which to confirm the accuracy of your tax return. If you fail to meet this deadline to verify your return, you can submit a request for a condonation of your delay with the department of tax. If the request for condonation (of delay) request is approved you will be able to verify your ITR. If your condonation request is not accepted the ITR is deemed as if it was it was not filed, and you'll need to file it again as an amended ITR. A late fee of up to Rs . 5000 must be paid to file a late ITR for which you will be given 30 days to verify that it was filed after July 31st 2022.
Situation 2. If you did not meet the July 31 , and you are filing an ITR belated for FY2021-22, then late fees will apply to you in all instances. The deadline for the verification of the belated tax return will be 30 days, you don't need to pay the late fee in the event that you fail to meet the deadline to verify. This is due to the fact that you already have paid the fee to file the belated ITR.
3. In case you're in the category of those who's accounts must be audited prior to filing of ITR, then the due date for filing an ITR to cover FY 2021-22 falls on September 30th 2022. If you fail to check the ITR within 30 days, the date of ITR filing is considered to be the date you check the ITR. If the usual date (of the filing of ITR i.e. Sept . 30) applicable to you is over when you check your ITR, you will have to pay for the charges applicable to late ITR .
Chartered accountant Ruchika Bhagat director from Neeraj Bhagat & Co. which is a chartered accountants' business according to her, "In case the deadline for verification of ITR (30 days) is missed , the date for filing the taxes will become the day the tax return is confirmed (E-verified/physical ITR-V submittal). Additionally, if verification of ITR verification falls beyond the deadline for filing ITR (usually the 31st of July) and the penalty is pursuant to the section 234F i.e. penalties for filing late ITR is charged. "The income tax portal can request that the taxpayer first pay the late filing fees (maximum of Rs. $5,000) before giving him/her the option to check his or her ITR, if the deadline to file ITR is not past."
The Dr. Suresh Surana, the founder of RSM India - a tax consulting company says "In the event that a person opts to verify their ITR (i.e. via sending ITR-V directly to CPC, Bengaluru via Post) the date of the dispatch of ordinary or Speed Post of a properly verified ITR-V will be taken into consideration for the purpose of determining the 30 days time period beginning as of the date of sending the income tax return's data electronically."
Can you file a condonation request in the event that the 30 day ITR verification deadline is not met?
In the past, if a person did not meet an ITR time limit of 120 days for verification, they was able to submit a condonation request. In a "Condonation Request" the taxpayer asks for the tax authority to allow them to check the ITR and also explains the reason why they failed to confirm ITR within the stipulated deadline. If the tax department finds it acceptable, the verification of ITR is permitted.
The new amendment is that Tax Department has announced that not confirming ITR in the stipulated 30 days time frame could lead to consequences for late filing. So, can a single taxpayer still file a condonation application?
"Condonation request" can be made anytime online by providing reasonable reasons for the delay in e-verification. If Income Tax Department is satisfied with the reasoning that condoning is accepted. If condonation is approved to the tax department penalties for late filing are waived" According to Bhagat.
If the tax department does not allow you to verify your tax return after the date for verification has come over, then the tax return will be deemed to be invalid. The Chartered accountant Naveen Wadhwa DGM, Taxmann.com says, "When the original uncertified ITR is considered to be an incorrect tax return, taxpayers are able to submit a late return (provided that the deadline for the filing of the original tax return has passed). If a tax return is deemed as inadmissible and the tax consequences for not filing of the tax return could be severe (such as the forfeiture of loss or the interest provided under section 234A/B/C and so on.) regardless of whether the taxpayer has filed late returns. Taxpayers can request the excuse of delayed the filing of a return of income as well as a the waiver in interest."
esire to switch to elecVs are no
Electric vehicles, also known as EVs, aren't just affordable, they also provide tax benefits in India. If you're contemplating buying one, be aware of the benefits of EVs and make an informed purchase.
According to the Union Budget 2019, the government offered tax-free incentives to purchase electric vehicles. The government further stated that any registered vehicle are covered within the scheme. In reality Section 80EEB of income tax was also introduced to provide tax incentives for electric vehicles.
What's this section all about?
Section 80EEB in the tax code provides a deduction for the interest charged on loans that is used for the purchase of electric vehicles. According to this section when you purchase the electric car, then you may receive tax deductions up to 1.5 lakh for interest for the amount of loan upon the purchase the electric car.
"The deduction can be used for business and personal reasons. The deduction allowed under this section is applicable until the time of payment of the loan," explained CA Ruchika Bhagat, MD, Neeraj Bhagat & Co in an interview with CNBC-TV18.com.
One should be aware that the deduction can be claimed only interest paid, and not the principal loan amount payments.
What are the criteria for eligibility for this?
It is available to people who are.
Therefore, if you're an AOP, HUF or partnership firm, corporation, or other taxpayer, you can't claim any tax benefits under this section.
Physical gold purchases come with substantial costs for making and cost and quality issues such as leasing lockers, purchasing insurance, etc. to ensure the security of the gold.
The purchase of gold during the holiday time is a long-standing tradition in India. However, many prefer investing in tangible gold, in form of gold jewelry and gold coins during the festive season.
The purchase of physical gold particularly gold jewelery requires a substantial cost to make and has quality issues and associated costs, such as leasing lockers, purchasing insurance, etc. to secure the gold and safe, today's investors are gradually shifting to paper or digital gold.
In addition to security and convenience Some of the digital gold options come with tax advantages that are beneficial to the investors .
CA Ruchika Bhagat MD, Neeraj Bhagat & Co offers her thoughts about some of the options for digital gold that you might consider investing in during the holiday season:
"Being considered to be auspicious and a sign of prosperity, demand for gold is higher during festive occasions like Dussehra, Dhanteras, and Diwali. The past was when people purchased gold-plated jewelry and coins but in recent years, intelligent investors have also begun buying gold in paper forms , such as Gold exchange-traded fund (Gold ETFs) and Sovereign gold bonds (SGBs) that are issued through the Reserve Bank of India, and Gold Mutual Funds (Gold Mfs)," said Bhagat.
"One of the most profitable investments that people are looking for is investing in Gold. They can yield good returns, but many additional advantages are available to investors in the event we look at the income Tax," she added.
Bhagat provides the advantages of digi gold over traditional gold:
It is possible to buy or sell by pressing the button on your mobile phone, and without the requirement to go to the neighborhood Jewelry Shop. With the quick money transfer to an account is guaranteed that you have the most liquidity.
You might think that investing in gold needs huge savings from your earnings. If so then this is the right opportunity the right opportunity for you. It is possible to begin making investments in Digital gold starting at Re 1.
There is no need to purchase 1 gm of gold, but its price is also quite too high. Digital gold provides the possibility with the smallest savings to make investments in Gold.
When purchasing digital gold you are assured that it is pure. There is no risk of fraud happening about its purity of which 24 carats are the standard. The total investment is Gold only.
When you purchase gold jewelry, you do not just have to pay the cost of gold, but also pay charges and other taxes.
Jewelers can charge anything from 7 percent to 25 percent based on the design of the jewelry. If the piece of jewelry has gems and precious stones it will cost more and the value of the item is added to the price of gold.
When dealing using gold jewellery, you don't have to keep or repair the value of the jewelry.
Something that should be taken note of is that every grams of gold you put with Digital Gold is secured by physical gold that is owned by these firms. Therefore, security concerns are removed.
Are you concerned about losing your gold possessions, due to theft or other reason? You can go to the back for an item and pay annual fees for a locker. You can also put your money into Digital Gold, and the rest is guaranteed. All Digital gold is insured and protected in vaulted vaults that are high-quality.
Bhagat discusses some of the possibilities to invest into Digital Gold:
They're a replacement for physical gold. Investors must pay for the purchase in cash and receive the entire amount upon expiration. It is considered to be a safe method of investing in gold particularly for those who have an investment plan that lasts for more than five years. There is a Reserve Bank of India (RBI) issues SGBs several times per year and determines an amount for each issue. Investors are able to use markets on the second side to buy the bonds.
The bonds provide investors with an interest rate that is guaranteed at 2.50 percent (fixed rates) per year for the initial investment. The investor is credited with the amount in interest over a semi-annually basis.
However, SGBs have a lock-in period of eight years, and the option to exit only in 5th, 6th and seventh years of the date of interest payments. In the event that investors wish to leave before five years, they have be able to trade the SGB through stock exchanges. Capital gains are not a part of these bonds.
Gold ETFs permit investors to purchase gold shares in a format that is dematerialized that can be purchased and traded on the stock market as shares. Within the Demat ledger you will find an amount of Gold equal to physical amount in Gold in electronic format.
They are all available on the exchanges, and you can receive live updates regarding their prices. ETFs aren't subject to exit charges, meaning that buyers can purchase and sell them anytime during the market hours.
These are typically open-ended funds which permit citizens to invest with no Demat account. Gold fund units are determined through the method the Net Asset Value which is reported at the close of trading hours. The scheme is managed by expert experts oversee your investments to generate wealth and decrease the risk.
The gold units can be exchanged by selling them back to the property according to NAV during the current day.
They are funds that invest in a pool of mutual funds. They carry the cost proportion of individual funds with their fees, which can make it a bit costly.
"Buying gold is just a click away. It's easy to purchase the gold. You can easily check the gold online and purchase the gold effortlessly," said Bhagat.
