Income Tax Department to be open on coming Saturday and Sunday

For due date of Income Tax Return being 31st July 2014, the Department will be kept open to accept returns on 26th and 27th July, 2014 being Saturday and Sunday respectively. 
Also, an arrangement of special counters will be made from 26th July for facilitating filing of Tax Returns!

Types of Income tax Forms for FY 2013-14 / AY 2014-15

Income Tax Return – Which form to use for IT Filing AY 2014-15

The Income Tax Department has come out with all Return Form applicable for AY 2014-15. The below table will give you details of usage of forms by Assessee. 

Forms	Who can use this Return Form	Who cannot use this Return Form
ITR-1 SAHAJ Indian Individual Income Tax Return	This Return Form is to be used by an individual whose total income for the assessment year 2012-13 includes:- (a) Income from Salary/ Pension; or (b) Income from One House Property (excluding cases where loss is brought forward from previous years); or (c) Income from Other Sources (excluding Winning from Lottery and Income from Race Horses) Further in case of income of another person like spouse, minor child, etc is to be clubbed with the Assessee, this return form can be used only if income being clubbed falls into above form category	This return form should not be used by individual whose total income includes: a)Income from more than one house property b) Income from winning lottery or income from race horses c) Income under head capital gains d) Income from Agriculture / Exempt income of more than Rs 5000/- . e) Income from Business or Profession f) Loss under income from Other Sources g) Person Claiming relief under Section 90 ot 91 f) any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
ITR-2 For Individuals and HUFs not having Income from Business or Profession	This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2014-15 includes: a) Income from Salary / Pension; b) Income from House Property c) Income from Capital Gains d) Income from Other Sources (including Winning from Lottery and Income from Race Horses) Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the  income of the assessee, this Return Form can be used where such income falls in any of the above categories	This Return Form should not be used by an individual whose total income for the assessment year 2014-15 includes Income from Business or Profession. NOTE:  A resident assessee having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India, shall fill out schedule FA and furnish the return in  return electronically under digital signature or transmit data electronically and submit ITR V
ITR-3	This Return Form is to be used by an individual or an Hindu Undivided Family who is a partner in a firm and where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, he shall use this form only and not Form ITR-2.	This Return Form should not be used by an individual whose total income for the assessment year 2013-14 includes Income from Business or Profession under any proprietorship.
ITR-4S SUGAM	This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2014-15 includes: a) Business income were income is computed in accordance with the special provision under section 44AD and 44AE b) Income from Salary / Pension c) Income from other source(Excluding Income from Lottery and income from race horse ) Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the  income of the assessee, this Return Form can be used where such income falls in any of the above categories	This return form should not be used to file following incomes a)Income from more than one house property b) Income from winning lottery or income from race horses c) Income under head capital gains d) Income from Agriculture / Exempt income of more than Rs 5000/- . e) Income from Speculative Business f) Income from Profession g) Person Claiming relief under Section 90 ot 91 f) any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India
ITR-4	This Return Form is to be used by an individual or a Hindu Undivided Family who is carrying out a proprietary business or profession.	NA
ITR-5	This Form can be used a person being a firm, LLPs, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form.	This return form should not be used by individual and HUF and Companies
ITR -6	This Form can be used by a company, other than a company claiming exemption under section 11.	This return form should not be used by person other than Companies
ITR- 7	This Form can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).	This return form should not be used by person other than Companies

Manner of filing the return form:

a)      By furnishing the return in paper form

b)      By furnishing return electronically with digital signature

c)       By transmitting the data in the return electronically and there after submitting ITR V to be send by speed post to Bengaluru.

A resident assessee having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India, shall fill out schedule FA and furnish the return in the manner provided at either B) or c) above.

From the assessment year 2013-14 onwards all the assessees having total income more than 5 lakh rupees are required to furnish the return in the manner provided at B) or c) Also in case of an assessee claiming relief under section 90, 90A or 91 to whom Schedule FSI and Schedule TR apply, he has to furnish the return in the manner provided at either B) or c)

From assessment year 2013-14 onwards in case an assessee who is required to furnish a report of audit under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 12A(1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E or 115JB he shall file the report electronically on or before the date of filing the return of income. Further, the assessee who is liable to file the above reports electronically shall file the return of income in the manner provided at either B) or c)

Where the Return Form is furnished in the manner mentioned at c), the assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bangaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.

-          CA Chirag Chauhan

For any query you can write to Chirag@cachauhan.in . Before making any decisions do consult your Professional / tax advisor.  Author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.

Online filing of Audit Report u/s10AA, 44DA, 50B, 115VW from AY 2014-15

An assessee required to furnish a report of audit specified under section 10AA, section 44DA, section 50B or section 115VW of the Act, shall furnish the said report of audit  and the return of Income electronically for AY 2014-15 and onwards.

 NOTIFICATION NO. 28/2014

[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
NOTIFICATION
New Delhi, the 30th day of May, 2014Income-tax

S.O. 1418(E).─ In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (6th Amendment) Rules, 2014.
(2) They shall be deemed to have come into force with effect from the 1st day of April, 2014.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 12, in sub-rule(2), in the proviso,-
(a) after the expression “section 10A”, the expression “section 10AA” shall be inserted;
(b) after the expression “section 44AB”, the expression “section 44DA, section 50B” shall be inserted;
(c) for the expression “or section 115JB”, the expression “section 115JB or section 115VW” shall be substituted.
3. In the said rules, in Appendix-II, for FORM ITR-3, FORM ITR-4, FORM ITR-5, FORM ITR-6 and FORM ITR-7, the following FORMS shall respectively be substituted, namely:-
[Notification No. 28/2014, F.No.142/2/2014-TPL]
(Gaurav Kanaujia)
Director to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax (5th Amendment) Rules, 2014 vide notification S.O. No.1297 (E) dated 16 May, 2014.

Best practices to be followed for filing Q4 TDS statements for Financial Year 2013-14

CPC (TDS) is reaching out to you to ensure that the best practices are followed for filing of your Q4 TDS statements. The emphasis is on timely, correct and complete reporting for taxes deducted at source, to ensure that the deductees are able to correctly claim TDS Credits and for generating correct TDS Certificates. As the due date for filing quarterly TDS statement for 4th quarter is approaching close, you are requested to take note of following important information before submitting TDS statements.

Payment of Taxes deducted / collected:

• In accordance with Central Government Account (Receipts and Payments) Rules, 1983, Government dues are deemed to have been paid on the date on which the cheque or draft tendered to the bank, was cleared and entered in the receipt scroll.
• Rule 125 of Income Tax Rules, 1962 provisions for Electronic Payment of Tax by way of internet banking facility, for a Company and a Person to whom provisions of section 44AB of the Act are applicable.

Timely Filing:

• The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014.
• Please submit the statement within due date to avoid Late filing fee, which, being statutory in nature, cannot be waived

Correct Reporting:

• Please use your correct contact details, including Contact Number and email IDs in TDS Statements.
• It is very important to report correct and valid particulars in respect to deductor and deductees. Please report the TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax correctly in the quarterly TDS statement.
• Please make use of TAN-PAN Master from TRACES to Validate PAN and name of deductees before quoting it in TDS statement. Please note that there are restrictions for correction of PAN.
• Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at Lower/Nil rate on the basis of certificate issued by the Assessing Officer. Please raise Flag "A"/ "B", as appropriate, and quote valid and correct Certificate Numbers.
• Please maintain your correct Contact details in your Registration profile at TRACES.

Complete Reporting:

• Please ensure completeness of your TDS statement by including all your deductees. Please note that the obligation to report each transaction correctly in the relevant quarter is on the deductor and non-compliance amounts to incorrect verification of completeness of TDS statement.
• Completeness of statement will ensure that a C5, C3 or C9 correction can be avoided. It may be noted that CPC (TDS) does not encourage C9 corrections by addition of a new challan and underlying deductees.
• Please also complete Annexure II for all deductees employed for any period of time during the current financial year, including Annexure I for TDS details.

Income Tax Rates in India for FY 2013-14 i.e. Assessment Year (AY) 2014-15 and TAX CALCULATOR

Income Tax Rates applicable for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI) in India is as under:

Assessment Year 2014-15, Relevant to Financial Year 2013-14 

For Individuals below 60 years age (including Woman Assessees):

Income	Tax Rate
Upto 200,000	Nil
200,000 to 500,000	10% of the amount exceeding 200,000
500,000 to 1,000,000	Rs.30,000 + 20% of the amount exceeding 500,000
1,000,000 & above	Rs.130,000 + 30% of the amount exceeding 1,000,000

 For Individuals aged 60 years and above but below 80 years (Senior Citizen):

Income	Tax Rate
Upto 250,000	Nil
250,000 to 500,000	10% of the amount exceeding 250,000
500,000 to 1,000,000	Rs.25,000 + 20% of the amount exceeding 500,000
1,000,000 & above	Rs.125,000 + 30% of the amount exceeding 1,000,000

 
For Individuals aged 80 years and above (Very Senior Citizen):

Income	Tax Rate
Upto 500,000	Nil
500,000 to 1,000,000	20% of the amount exceeding 500,000
1,000,000 & above	Rs.100,000 + 30% of the amount exceeding 1,000,000

 
Tax Credit: Rs. 2,000 for every person whose income doesn’t exceed Rs. 500,000. (i..e Rs.2,000/- tax will be reduced from the tax liability. It means if originally the tax was Rs. 30,000/-, then it would be reduced by Rs.2,000/-, the net tax liability being Rs.28,000/-)

Surcharge on Income Tax: 10% of the Income Tax payable, in case the total taxable income exceeds Rs.10,000,000. Surcharge shall not exceed the amount of income that exceeds Rs.10,000,000.

Education Cess: 3% of Income Tax plus Surcharge (Education cess @2% and Secondary and Higher Secondary Education cess @1%)

SLABS FOR BUSINESS

The following Income Tax Slab Rates shall be applicable for the Assessment Year 2014-15 i.e Previous Year 2013-14. Education Cess @ 2% and SHEC @1% shall be levied on the Income Tax so computed.

1. For Co-operative Society

Income Tax Slabs	Income Tax Rates
Where the Total Income does not exceed Rs. 10,000	10% of the Income
Where the Total Income exceeds Rs. 10,000 but does not exceed Rs. 20,000	20% of the Amount by which it exceeds Rs. 10,000
Where the Total Income exceeds Rs. 20,000	30% of the Amount by which it exceeds Rs. 20,000

2. For Firms, Local Authority and Domestic Company

Income Tax Slabs Rates wont apply in this case and Tax @ 30% flat shall be computed on the Total Income. Surcharge shall not be levied on Income of Firms and Local Authorities but shall be levied on the Total Income Tax of Domestic Companies @ 5% provided that the Total Income of the Domestic Company exceeds Rs. 1 Crore (i.e. Rs. 10 millions)

TAX CALCULATOR: http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx