No TDS on interest income up to Rs 50,000 in case of senior citizens, clarifies CBDT
CBDT has clarified that in the case of senior citizens, no TDS is required to be deducted u/s 194A, where the amount of such income doesn’t exceed Rs 50,000 in aggregate.
Are you a senior citizen and your bank is still deducting TDS on your interest income which is less than Rs 50,000 in a financial year? Here’s good news for you. The Central Board of Direct Taxes has clarified that in the case of senior citizens, no TDS (tax deducted at source) is required to be ‘deducted at source’ u/s 194A of the Income Tax Act, where the amount of such income during a financial year doesn’t exceed Rs 50,000 in aggregate.
In a circular, CBDT has said that it has been brought to its notice that in case of senior citizens, some TDS deductors and banks are deducting TDS despite the amount of income not exceeding Rs 50,000 in a financial year. “The same is not in accordance with the law as the Income-Tax Act provides that no tax deduction at source under section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed Rs 50,000,” it said.
The Tax Department further said that under sub-rule (5) of Rule 31A of the I-T Rules, 1962, the Director General of Income-tax (Systems) is authorized to specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.
“In exercise of the powers delegated by the CBDT(Board) under sub-rule (5) of Rule 31A of the I-T Rules, 1962, the Principal Director General of Income-tax (Systems) hereby clarifies that no tax deduction at source under section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed Rs 50,000.”
It may be noted that earlier a deduction of Rs 10,000 in respect of interest income was provided to all taxpayers. However, to provide a dignified life to senior citizens, significant incentives were given to them in the Budget 2018-19 by FM Arun Jaitley. One such incentive was given in the form of exemption of interest income on deposits with banks and post offices up to Rs 50,000 without TDS under Section 194A. For this purpose, a new Section 80TTB was inserted in the I-T Act to provide deduction for interest income up to Rs 50,000. This benefit is also available on interest income from all FDs and recurring deposit schemes.
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Accidental Death & Compensation:
(Income Tax Return Required)
If a person has an accidental death and the person was filing income tax returns for the last three years, then the government is obliged to give ten times the average annual income of the last three years to that person’s family.
Yes, you will be surprised by this, but this is right and it is Government rule. For example, if someone’s annual income is 4 lakh 5 lakhs and 6 lakhs in the first, second and third years respectively, its average income is ten times of five lakhs.. means five million rupees, family of that person is entitled to receive from the Government.
In the absence of much information, people do not take this claim with the Government.
If any return is missing, mainly last three years, this could lower the claim amount or even no claim because court takes ITR as only evidence. NO wealth record, FD’s; business etc. is given that much importance as compared to ITR in the eyes of law.
Many a time, people do not file ITRs regularly..or it will be taken lightly..
Due to lack of information the family receives no economic benefits.
Source – forwarded
Section 166 of the Motor act, 1988 (Supreme Court Judgment under Civil/ Appeal No. 9858 of 2013, arising out of SLP (c) No. 1056 of 2008) Dt. 31 Oct. licvaithi
Accidental Death & Compensation:
(Income Tax Return Required)
The last date for filing the annual income tax return (ITR) for the financial year 2018-19 or assessment year 2018-19 to the Income Tax Department is July 31.
It is mandatory for people to file tax returns if their gross total income (before allowing deductions under section 80C to 80U) exceeds Rs 250,000 in a financial year. The limit is Rs 300,000 for senior citizens (more than 60 years old, but less than 80 years old) and Rs 500,000 for super-senior citizens (more than 80 years old).
One can file his/her return involuntarily even if your income is less than the maximum exemption limit. As the date nears, here are the guidelines on how to file your tax returns (physical or online) easily:
When filing the ITR Form-1 (Sahaj) form offline, you will need to take a print and fill it up in order to submit it. Once the tax department receives your form, it will send you an acknowledgment.
However, not everybody is allowed to fill the form offline. Those who can do so are:
– Super senior citizens (80 years and above)
– Individuals or HUF whose returns are without refund claims in the IT returns
– Those whose income is of up to Rs5 lakh
There are two ways of filling the form online. One is by manually entering all details and submitting the return online. The other is by uploading XML files through offline methods.
This form needs to be submitted to the Income Tax Department’s website.
Log on to http://www.incometaxindiaefiling.gov.in. You will need to keep your user ID, password and date of birth ready for this. You will also be asked to enter a captcha code.
When you sign in, click on the option which says “Filling of Income Tax Return”
Select the ITR form name, choose the assessment year as well as the submission mode. You will need to prepare this and submit it on the website itself.
Fill in the rest of the details as required and hit the submit button.
The system will generate a message of acknowledgement which will tell you that your income tax return has been submitted successfully. After this, the ITR-V would pop up on the screen. This will be the acknowledgement and you will need to download this. The ITR-V would also be sent to the email id you have registered with the IT Department website.
Log on to the website http://www.incometaxindiaefiling.gov.in. Go to the homepage. Click on the “Offline Utilities” option.
You will come across another option which says “Income Tax Return Preparation Utilities”.
Choose the Assessment Year for which you are filling the income tax return.
Download the offline utility (Excel or Java)
Prepare the income tax return form offline at your convenience, save it and extract XML files.
Then go online again, click on the “Filing of Income Tax Return” option and submit the XML files.
E-verify your the filing of your return within 120 days of submitting it to complete the process.
Documents needed to file ITR
For filing income tax returns (offline or online), you need to keep handy checklist of several details including bank account details, PAN number, pay slips, rent receipts for claiming HRA, address of the house property.
The Central Board of Direct Taxes (CBDT) has notified the Income-tax Return (ITR) Forms applicable for the Assessment Year 2018-19. These ITR Forms will be applicable for filing income-tax return in respect of income earned during the period 1st April 2017 to 31st March 2018. The new forms incorporate the changes made by the Finance Act, 2017 in the Income-tax Act, 1961. It is apparent that the new ITR Forms have shifted the entire onus on the taxpayers to prove their claim for deductions, expenses or exemptions.
Form ITR 7 (Applicable to trusts and charitable institutions)
Trusts and institutions established for charitable purpose are required to file their annual income-tax Return in ITR 7. Aadhar number of trust functionaries like trustees must be disclosed as also amount of foreign contributions received and for what purpose. In our view, there is a huge data-mining exercise on part of the Government of India.
It is mandatory for a trust or charitable institution to file return of income electronically with or without digital signature. A trust may also file return of income under Electronic Verification Code. However, a trust liable to get its accounts audited under section 44AB shall furnish the return electronically under digital signature.
Trusts & charitable institutions to disclose more information in ITR 7
Charitable or religious trusts filing income-tax return for the Assessment Year 2018-19 (Financial Year 2017-18) in Form ITR 7 shall be required to disclose following additional information:
- Aggregate annual receipts of the projects/institutions run by the trust. However, the table asking details about the name and annual receipts of institutes covered under Sections 10(23C)(iiiab), (iiiac), (iiiad) and (iiiae) has been removed.
- Date of registration or approval granted to the trust.
- Amount utilized during the year for the stated objects out of surplus sum accumulated during an earlier year.
Details of fresh registration upon change of objects (Section 12A)
Section 12A provides for conditions to be satisfied by a charitable institution for availing of exemption under sections 11 and 12. A new clause (ab) has been inserted in Section 12A(1) with effect from Assessment Year 2018-19 to provide that where a charitable institution has been granted registration and, subsequently, it has adopted or undertaken modification of the objects which do not conform to the conditions of registration, it shall be required to take fresh registration. Consequential changes have been made in the Form ITR 7. A trust will be required to furnish the following details if there is any change in its stated objects:
- Date of change in objects
- Whether application for fresh registration has been made within stipulated time period?
- Whether fresh registration has been granted?
- Date of such fresh registration.
No deduction for corpus donations made to other institutions (Section 11)
Up to Assessment Year 2017-18, a donation made by a registered trust to another registered trust constituted application of income notwithstanding that the donation was made with a specific direction that it shall form part of the corpus of the donee. The Finance Act, 2017 has inserted a new Explanation 2 with effect from Assessment Year 2018-19 to effect that any donation to another charitable institution registered under section 12AA with a specific direction that it shall form part of the corpus of the donee, shall not be treated as application of income for charitable or religious purposes.
The consequential changes have been made in form ITR 7. In Schedule TI (Statement of Income) all the corpus donations made by a trust to another registered trust shall be added back to the taxable income of the donor trust.
Due date & penalty
A trust which is required to get its accounts audited under the Income-tax Act or under any other law, the due date is September 30 of the relevant assessment year.
Finance Act, 2017 has levied new fees if an Assessee does not furnish the return of income on the due dates prescribed under Section 139(1). The amount of such late filing fees shall be: INR 5,000 if return is furnished after the due date, but, before December 31 of the assessment year (INR 1,000 if total income is up to INR 5 lakhs) and INR 10,000, in any other case.
After introducing this new provision, the Assessee shall now be required to pay the late filing fees under section 234F along with interest under section 234A, 234B and 234C before filing of return of income. The Income-tax department shall not be required to initiate the penalty proceedings separately to levy such fees on late filers. Relevant changes have been incorporated in the new ITR forms wherein a new row is added to enable the Assessee to fill the details of late filing fees.
View latest ITR 7 at:
How to Link Pan Number with Aadhar Card
Both the PAN card as well as the Aadhar card are unique identification cards that serve as proof of identity that are necessary for registration and verification purposes. The Process to link your Aadhar number with PAN numner or Income Tax Return has been announced by Income Tax Department on July 13, 2015.
Income Tax Department(ITR) has given the facility to link Permanent Account Number (PAN) with the unique identification Number or Aadhar number. It helps you to eliminate the process of sending ITR – V to CPC(Centralised Processing Centre) in Bangalore.
Although PAN Card will be linked with Aadhar number only , if your personal details like Name, Gender, Date of Birth matches with Aadhar data as per PAN Data.
Income Tax Department will validate your name, date of birth, gender as per PAN and Aadhar Number with Centralized database of Unique Identification Authority of India(UIDAI). Please note that if the details do not match, the Aadhar number will not be linked to your PAN.
After the completion of Aadhar and PAN number linking process, you can e-verify your return if your mobile number is registered with UIDAI.
Please be noted that once you linked your Pan number with Aadhar card, you cann’t delinked it. As of now Income Tax Department has not given the facility to delinking PAN number with Aadhar. Follow the simple guide to link PAN number or Income Tax Return with Aadhar number(UID):
- Login to income tax e-Filing portal.
- When you logged into the e-filling portal, a pop up window appears on your screen to link your Aadhar Number.
- If the pop up window will not show automatically, you can go to profile settings under the main menu and click on the link that says Aadhar linked to PAN.
- Before entering the Aadhar card , be sure to verify your Name, Gender, Date of Birth should matches with PAN Card details.
- Income tax department will validate all your details and then after cross verifying all the details, enter your Aadhar number, text code.
Note: Don’t have Aadhar Card. Check guide on How to get Aadhar Card.
- At last, Click on Link Now.
- After validation, Aadhar number will be linked to your PAN number.
Note: Aadhar will be linked only if the details match.
How to generate EVC through Income Tax site?
- Login to income tax e-Filing portal.
Note: There are two ways to generate EVC(Electronic verification Code). One is via your Netbanking account or second is via your registered email address/phone number. These steps works for second method.
- Enter the EVC received on your registered email address/mobile number.
- Click on e-verify return under the E-file tab.
- There will be four options. Choose first option: “I already have an EVC and I would like to Submit EVC”. Provide the EVC in the text box. Click Submit.
- Download the Acknowledgement document. Your e-filing is complete. No further action is required from your end now.
Note: In future, Aadhar card not only will be useful but also mandatory to avail benefits of various government schemes and services. I recommend you to check numerous other benefits of having Aadhar Card.
Contributed by Anuradha Chawla – AadharCard.in
CBDT has released New Income Tax return form for assessment year 2016-17.Last year income tax department has released the Final Income tax return form in last week of June ,due to which Income tax return due date has extended and lately due date in audit cases was also extended after the court interference .We have not gone through Income tax forms in detailed but ITR-1 and ITR-2 are more or less is same as it were last year.
However for assessment year 2016-17, the tax department has now included a schedule on asset and liabilities which will have to be filled by individuals and HUFs, or Hindu Undivided Families, where total income exceeds Rs.50 lakh. It has also asked individuals and HUFs to provide details of pass-through income from business trust or investment fund in ITR form 2 and ITR form 2A.
|(a)||in sub-rule (1),—|
|(A)||after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;|
|(B)||for the figures “2015”, the figures “2016” shall be substituted;|
|(C)||in clause (ca), after the words “Hindu undivided family”, the words “or a firm, other than a limited liability partnership firm,” shall be inserted;|
|(D)||in clause (g), after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;|
|(b)||in sub-rule (5), for the figures “2014”, the figures “2015” shall be substituted.|
(2) in Appendix-II, for “Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V”, the following forms shall respectively be substituted, namely:—
Download ITR forms for AY -2016-17
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Filing income tax returns has always been confusing for most first timers. Even those who have filed IT returns before face many issues filing the return on time. Here are 14 helpful initiatives taken by the Income Tax department to simplify the life of tax payers.
Income Tax department of India recently launched some useful initiatives that are tax-payer friendly. These not only help the tax-payer to communicate with the department in a simpler way but also help the department in keeping track of financial transactions by tax payers.
Here are 14 initiatives recently launched by the income tax department that will definitely make the work easy for both the parties –
1. E Sahyog
The recently launched eSahyog initiative enables small taxpayers to interact with the department over email. The paperless initiative will enable IT department to send notices to assessees via email. The step will save them from physically appearing before the tax authorities. It is an online tool to resolve any mismatches in IT returns of taxpayers whose returns have not been selected for scrutiny, without visiting the IT Office.
2. Pan Camps
The government had announced in the last Budget that quoting of PAN (Permanent Account Number) will be mandatory for any purchase or sale exceeding Rs. 1 lakh. The expansion of the number of PAN card holders would help the government implement this budget proposal. Currently there are 23 crore people with PAN card in India.
To facilitate people to get PAN cards, the government plans to launch camps across the country. Since not everyone, especially in the rural areas, possesses a PAN card, such camps might enable people to get access to it easily.
3. Tax return preparer scheme
Would you believe it if we told you that the ITD offers you a tax filing service at your door steps, which consists of trained and certified professionals who can help you file your tax return free of cost or at a minimal fee? Introducing TRPS. Launched in 2006 by the Income Tax Department, TRPS scheme assists small and marginal taxpayers in preparing and filing their tax returns by creating a company of ‘Tax Return Preparers’ (TRPs). They can charge a maximum fee of Rs. 250, or sometimes nothing. Here is how you can find a TRP.
4. Tax refund in 7-10 days
In September 2015, Income Tax Department announced that it will now process and send tax refunds in a short time of 7-10 days. Earlier, taxpayers had to wait for months, or in some cases, even years to get the refund. The step was initiated after the department’s latest technology upgrade of electronic and Aadhaar-based Income Tax Return (ITR) verification. With the introduction of new technology, the department wants to eliminate human interference in taxpayers services to enable faster and hassle-free processing of ITRs and refunds.
5. Simplified IT forms
In May, 2015, The Finance Ministry gave a big relief to the tax payers by introducing a new, simplified three-page income tax return (ITR) forms. They also dropped the controversial provision for mandatory disclosure of foreign trips and dormant bank accounts which are not operational during the last three years. The new forms — ITR 2 and ITR 2A — had only three pages which brought paperwork down to a great extent for the tax payers. The new ITRs replaced the 14-page form that were notified earlier this year.
6. Relief for Travellers
With regard to foreign travel details, it is now proposed that only the passport number, if available, will be required to be furnished in ITR-2 and ITR-2A. There would be no requirement to provide details of foreign trips/expenditure. This would bring relief to all individuals who travel extensively.
7. Clarification on the applicability of MAT
The Government of India accepted the recommendation of the A.P. Shah committee to clarify the total inapplicability of MAT to FII/FPIs not having a place of business/ permanent establishment in India. The confusion over MAT erupted after the tax department sent notices to 68 FIIs demanding Rs. 602.83 crores as MAT dues. The committee was quick to recommend the inapplicability of MAT, which was further affirmed by a circular from CBDT.
8. Electronic Verification of Income Tax Returns
Taxpayers have also appreciated the new initiative of Electronic Verification of the Income Tax Return through Aadhaar card linkage and Net-banking. The testimonials affirm user-friendliness and removal of the hassle of sending the hard copy of the ITR-V form to Bengaluru. Taxpayers have also reported that the process of e-verification shortens the time taken for processing of the return and issue of refund. Salaried employees claimed that they were able to file their tax returns in under ten minutes.
9. Tax Relief to shopkeepers for using Digital Payment System
A unique tax reform that the Finance Ministry is working on actively now is the proposal of offering tax relief to shopkeepers as well as consumers for using the digital payment system. Shopkeepers will be incentivized if their sales exceed a minimum threshold limit for card transactions. As of now many business establishments, including shopkeepers, prefer cash transactions over card or any other electronic form of payment. The excessive use of cash is seen as one of the reasons for a bustling illegitimate parallel economy. This new proposal will not only establish digital transactions, it would also help in clamping down on black money and fake transactions. The offer of tax incentives to both users and shopkeepers makes it a win-win situation.
10. Pre-filled Tax Return Forms
As part of efforts to popularize the electronic mode of filing Income Tax Returns (ITRs), the CBDT is planning to provide “pre-filled” return forms to filers which will have an automatic upload of data on income and other vitals of a taxpayer.
11. Improvement in Taxpayer services
Taxpayer services will be improved to a great extent with CBDT announcing that recommendations of a government-appointed panel on reforms in tax administration will be implemented soon. The TARC (Tax Administration Reform Commission) had also recommended industry-based jurisdiction instead of the current system of territorial revenue collection for direct taxes in the country for which the Board has constituted a committee recently
12. Faster resolution of grievances
The disposal rate of grievances received this fiscal till 22 July through the centralized public grievance redress and monitoring system has increased to 85%, the tax department said. The department will also set up an additional 58 aayakar seva kendras to provide services to tax payers. At present, there are 250 such centers.
13. Establishment of online platform Sevottam
The Income Tax Department has set up its internal online platform known as Sevottam, connecting all Income Tax offices in the country. The details of each consumer grievance will be updated in the platform every day. There will be day to day monitoring by the department on this, to ensure that grievance resolutions are fast and time bound.
14. Taxpayer-friendly steps taken when needed
The CBDT had extended the last date for filing tax returns for the residents of Gujarat due to the disturbances caused in the state over reservations. Consequently, it also issued an order extending the due date for the residents of all the states of India when High Courts of different states ruled varied judgments on the same, so as to avoid discrimination amongst the tax payers.
Special thanks to Raghavendra Prabhu, Raghav Subramani and Vidit Chaudhary from KPMG for their important inputs.