White Collar Advisors

09/07/2018

25/05/2018

*Very very useful financial tips*

1. *Avoid buying property on loans unless you have a clear plan for its repayment. Monitor cash flow*

2. *Start a SIP at a very young age*

3. *Avoid buying a car unless you use it everyday*

4. *Do not let this sentence scare you. “Mutual fund investment are subject to market risk”. Look at the history and growth of Mutal Funds*

5. *Try having a simple wedding*

6. *Atleast 20% of your wealth should be liquid so you can utilize it when necessary*

7. *Considering inflation, do not keep huge money in savings bank account*

8. *If you invest in stocks, pay due attention*

9. *Do not have a belief that property & car make you rich*

10. *Never invest in insurance for returns*

11. *Use credit card for needs not for wants*

12. *Cancel all credit cards before you die, or inform family. Even a small residue will cost your family much*

13. *Invest on yourself & then on other investments*

14. *Balance your earnings with your savings first, then on spending and loans. Never take unnecessary loans*

15. *Always have a plan for future events on your career, life, spending and finance*

16. *Always have a reserve on your savings for contingency and urgent situations*

17. *Investment like, have a regular health check & do healthy workout every day*

18. *Do buy adequate term Insurance if you have dependents*

17/05/2018

12/04/2018

Changes in ITR forms for FY 2017-18

Let us compare the new ITR 1 form with the old ITR 1 form to see how they are different from each other. There are 6 major modifications in the form.

1) Break-up of income needed

If you look at “Part B Gross Total Income”of last year’s ITR 1, it only asked for income details under 3 heads which were “Income from Salary or Pension”, “Income from One house property” & “Income from Other Sources”. But the same part of the new ITR 1 form asks for greater details for the first two heads of income.

2) New field for late filing fees under section 234F

A new field has been introduced in the new form under “PART D – COMPUTATION OF TAX PAYABLE” to report the amount of late filing fee paid u/s 234F. So, you only need to fill this field if you file your return late and pay late filing fee.

3) Field for cash deposited during demonetisation period removed

Demonetisation was introduced by the government in the year 2016. Taxpayers who made deposits during demonetisation were asked to provide relevant details in their ITR forms. Old ITR 1 form asked this information under “PART E – OTHER INFORMATION”. This part has been eliminated in the new ITR 1 form.

4) Field for ‘Amount claimed in the hands of spouse if section 5A is applicable’ is now removed

If you look at the “Schedule – TDS Details of TDS/TCS” of the old ITR 1 form, it has a column where any amount claimed in the hands of spouse was to be mentioned as per the provisions of section 5A of the I-T Act 1961. If you look at the new ITR 1 form, you will see that this part has been eliminated.

5) New field for TRP details

Another field has been added which asks for the details of Tax Return Preparer like his ID no., name & signature. These details will be required only if you get your return prepared from a TRP, so you do not need to worry about this field. The TRP will himself provide these details.

6) New ITR 1 form not applicable to NR or RNOR

Another important change has been made in the applicability of form ITR 1. The new ITR 1 form is meant for an individual who was a resident other than not ordinarily resident and had income from salary, one house property and other sources (interest etc.) with total income up to Rs 50 lakh in the FY 2017-18. It means that an assessee who is an NR or RNOR will not be able to use this form.

The overall changes made to the old ITR 1 form seems to be a welcome move as it will minimise the compliance burden on the part of the taxpayer. Stay tuned to learn about the changes in other ITR forms. We will update this blog very soon.

Choosing the correct ITR form is only a small part of the tax filing process. To file your taxes, you need to assess your tax liability, choose the right ITR form, pay right amount of taxes, claim all applicable tax deductions etc.

18/03/2018

*File Yours and Family's Income Tax Return*
before 31st March, *if pending*.

From 1st April 2018, It will not be possible to file return for FY 2015-16 nd 2016-17. *Only 1 year return can be filed i.e. FY 2017-18*

So if you are planning for
Loan,
Foreign Trip,
Term Insurance etc.

*Where return of last 3 years are required, better to file your return now*.

Thanks

02/03/2018

Cabinet approves Fugitive Economic Offenders Bill, 2018

The Union Cabinet chaired by Prime Minister Shri Narendra Modi, has approved the proposal of the Ministry of Finance to introduce the Fugitive Economic Offenders Bill, 2018 in Parliament. The Bill would help in laying down measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts.

04/02/2018

*Salient Features of Finance Bill, 2018*
1. No change in Tax Rate. All persons including individuals, HUF, Firms and Companies to pay same tax . However Education cess is being increased from 3 to 4 % to be known as *Education and Health cess*.
2. However for Domestic Companies having total turnover or gross receipts not exceeding Rs 250 crores in Financial year 2016-17 shall be liable to pay *tax at 25%* as against present ceiling of Rs 50 crore in Financial year 2015-16.
3. *Long term Capital gain exemption* under section 10(38) in respect of *listed STT paid shares* being withdrawn.
4. However *capital gain up to 31.1.2018 shall not be taxed* as cost of acquisition will be taken as Fair Market Value as on 31.1.2018.
5. Tax on *STT paid long term capital Gain will be 10%* under Section 112A. Further such tax will be liable for TDS.
6. *Standard Deduction of Rs 40,000 for salaried employees*. However benefit of transport allowance of Rs 19,200 and Medical Reimbursement of Rs 15,000 under Section 17(2) are being withdrawn. Thus net benefit to salaries class only Rs 5,800
7. Provision of Section 43CA, 50C and 56(2)(x) being amended to allow *5% of sale consideration in variation vis a vis stamp duty value*. On account of location, disadvantage etc.
8. Provision of section 40(ia) and 40A(3) and 40A(3A)are being made applicable to *Charitable Trust*. Hence expenditure incurred without deduction of tax and in cash will not be eligible as application of income under section 10(23C) and section 11(1)(a).
9. Agriculture Commodity Derivates income /loss also not to be considered as speculative under section 43(5).
10. Income Computation and Disclosure Standards(ICDS) being given statutory backing in view of decision of Delhi High Court decision.
11. *Marked to market loss* computed as per ICDS to be allowed under section 36.
12. Gain or loss in Foreign Exchange as per ICDS to be allowed under new section 43AA.
13. Construction Contract income to be computed on percentage completion method as per ICDS.
14. Valuation of Inventory including Securities to be as per ICDS.
15. Interest on compensation, enhanced compensation. Claim or enhancement claim and subsidy, incentives to be taxed in the year of receipt only as per new Section 145B.
16. Conversion of stock in trade to capital asset to be charged as business income in the year of conversion on Fair Market value on the date of conversion.
17. *54EC benefit of investment in Bonds* to be restricted to Capital gain on land and building only. Further period of holding being increased from 3 years to 5 years.
18. *PAN to be obtained by all entities* including HUF other than individuals in case aggregate of financial transaction in a year is Rs 2,50,000 or more. All directors, partners, members of such entities also to obtain PAN.
19. All companies irrespective of income to file return and in case it is not filed, such companies will be liable for prosecution irrespective of the fact weather it has tax liability of Rs 3,000 or not.
20. Assessments to be E assessment under new section 143(3A)
21. No adjustment under section 143(1) while processing on account of mismatch with 26AS and 16A.
22. Deemed dividend to be taxed in the hands of the company itself as Dividend Distribution of tax @ 30%.
23. *Penalty for non filing financial return as required under section 285BA being increased to Rs 500 per day*.

30/01/2018

Ewaybill Update :

As on 25/01/2018, the following 13 States have issued notification for introducing E-waybill w.e.f. 1st February, 2018 for INTRA-STATE (within state) movement of goods having consignment value exceeding ₹50000.

1) Andhra Pradesh
2) Arunachal Pradesh
3) Bihar
4) Haryana
5) Jharkhand
6) Karnataka
7) Kerala
8) Puducherry(UT)
9) Sikkim
10)Tamil Nadu
11)Telangana
12)Uttar Pradesh, and
13)Uttarakhand

Also, the following states have issued notification for introduction of e way bill from a deferred date as given below:

14) Odisha - 01/06/18
15) Maharashtra - 01/05/18
16) Chattisgarh - 01/06/18
17) West Bengal - 01/06/18

Note: E-WAYBILL is mandatory in all States/UT for inter-state movement of goods w e.f. 01/02/18.

04/09/2017

Update
GST Returns Due date extended
July
GSTR-1- 10th September
GSTR-2- 25th September
GSTR-3- 30th September
August
GSTR-1- 5th October
GSTR-2- 10th October
GSTR-3- 15th October

31/08/2017

Due-date of filing Income Tax Returns & Tax Audit Report extended from 30th Sept 2017 to 31st Oct 2017

F.No. 225/270/2017/ITA.11
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North-Block, ITA.II Division
New Delhi dated the 31st of August, 2017

Order under Section 119 of the Income-tax Act. 1961 ('Act')

The Goods and Services Tax ('GST') has come into effect on 01.07.2017. In recent days, dates for filing various returns and forms under GST have been extended by the Government. In this backdrop, representations have been filed by various stakeholders requesting for extending the 'due date' for filing various reports of audit as well as tax-returns under the Income-tax Act from 30th September, 2017 so as to allow sufficient time to the assessees' and tax professionals, and thus, facilitate their ease of compliance with statutory responsibilities under various fiscal laws.
On consideration of the matter, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Act, in respect of all assessees' covered under clause (a) of Explanation 2 to sub-section (I) of section 139 of the Act, hereby extends the 'due-date' prescribed therein for filing the return of income as well as various reports of audit prescribed under the Income-tax Act which are required to be filed by the said 'due date' from 30th September, 2017 to 31st October, 2017.

(Rohit Garg)
Director-ITA.II

30/08/2017

The Cabinet has announced to increase the cess on mid-size, large cars, luxury cars and SUVs from current 15% to 25% under the new GST regime. The government will now push for a Presidential nod soon for hiking maximum cap of cess.

Prices of most SUVs were cut between Rs 1.1 lakh and Rs 3 lakh following the implementation of GST, which subsumed over a dozen central and state levies like excise duty, service tax, and VAT from July 1.