Wednesday, September 9, 2015

No extention of due date for filling Tax Audit and ITR for the AY 2015-16 - CBDT

CBDT has given a press release today that the last date for filing of returns due by 30th September 2015 will not be extended. Taxpayers are advised to file their returns well in time to avoid last minute rush.

The Government has received representations from various stakeholders seeking extension of date for filing of returns and tax audit reports beyond 30th September 2015. Income-tax returns for Assessment Year 2015-16 for companies, firms and individuals engaged in proprietary business/profession etc whose accounts are required to be audited, are to be filed by 30th September, 2015. The audit report is also required to be filed by the said date. 

AS per CBDT the Income-Tax Returns Forms 3,4,5,6 and 7 were notified for Assessment Year 2015-16 on 29.07.2015 and were e-enabled on the e-filing website of the Department from 7th August 2015. 

The taxpayers having either international transactions or specified domestic transactions are required to file their returns by 30th November 2015 only. 

Tuesday, September 8, 2015

Payment of Interest on Educational Loan and Tax benefits

An Individual can plan tax for spending on education of their spouse or children including legal guardian. One should not spend out of savings but should take education loan and take benefit of deduction under Section 80E for payment of interest on educational loan.
 Through this tax planning one can reduce cost of education by reducing tax liability by paying interest on education loan. The deduction for payment of interest on educational loan under Section 80E is available to an individual only if one satisfies conditions laid down under Section 80E of Income Tax Act, 1961.

Salient points to be kept in mind while planning tax deduction under Section 80E:

1. Only to Individual : Such deduction is available only to Individual and not to HUF or any other assessee.
2. Interest paid is deductible: The total amount paid as interest is eligible for deduction and there is no limit for the same. The interest paid is to be reduced from taxable income so the higher the tax slab of the assessee borrower, higher the amount of tax saving. So if there is a choice of any of the parents then higher income parent should borrow for education of their children. However there is no benefit for repayment of principal amount of the educational loan.

3. Interest on loan from Financial Institution or approved charitable Institution only: Interest on loan taken from any financial institution or any approved charitable institution for the purpose of pursuing higher education by spouse or children is eligible for deduction under Section 80E. Interest on loan taken from friends and relatives is not eligible for deduction under section 80E.
a. financial institution includes any bank or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;
b. approved charitable institution includes any chartable institution established for the purpose of education or an institution established for charitable purposes approved by the prescribed authority under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;

4. The Purpose of loan should be higher studies of Individual , Spouse, Children of Individual or for whom individual is legal Guardian. And Higher studies includes full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences &  vocational studies. Interest paid on education loan taken for brother or sister or other relatives is not deductible under section 80E.

5. Interest paid on education loan eligible for deduction upto 8 years; The interest paid on educational loan is deductible in computing the total income for the eight assessment years including the assessment year in which interest payment is started or until the interest is paid by the assessee in full, whichever is earlier.

6. Individual borrower can claim deduction: The deduction under section 80E for the payment of interest on educational loan is allowed to the borrower only. If loan is in the name of some other person the deduction is not allowed.

7.Loan taken for incidental expenses for pursuing higher studies is also eligible: The interest on educational loan qualifies for tax benefits even if taken for tuition fee, college fees and even for other incidental expenses including hostel charges, transport charges for pursuing such studies in India or abroad.

8. The repayment of education loan is not deductible under Section 80C.

Wednesday, September 2, 2015

Monthly Statutory Obligations for September, 2015

Statutory Act
Applicable Form
Service Tax
E-Payment of Tax
Last date for payment of Service Tax in case of companies for the month  August  
Central Excise
E-Payment of Tax
Monthly-payment of Central Excise Duties for the previous month –For non SUI units
Income Tax
Challan No.ITNS-281/17
Payment of TDS/TCS deducted/collected in August
Income Tax
Form No.15G,15H, 27C
Submission of Forms received in Previous month to IT Commissioner
ER-1  & ER-2
Return for Non SSI assessees for June , Return for EOUs for Aug
Return by units paying duty > 1 crore (CENVAT + PLA) for Aug
Deposit of DVAT TDS for Aug
Provident Fund
Electronic Challan Cum Return(ECR)
E-Payment of PF for August (Cheques to be cleared by 20th)
Advance Tax
Challan 280
Payment of  Advance Tax Installment for Assessment year 2015-16
ESI Challan
Payment of ESI of August
D-VAT-20 & Central
Deposit of VAT & CST for August for Monthly Dealers
Income Tax
ITR -03,04,05,06,07
Return of Income and Wealth for others covered under Audit & Companies. ( Other than covered under Transfer Pricing Regulations )

CBDT extends 'due-date' for Income Tax returns for all assessees to 7th Sep,2015

CBDT has extended the 'due-date' for E-Filing Returns of Income from 31st August, 2015 to 7th September, 2015 in respect of all the taxpayers who were required to E-File their returns by 31st August, 2015 for Assessment Year 2015-2016.
On 10th June, 2015, the Central Board of Direct Taxes ('CBDT') had extended the 'due-date' for filing Income-tax returns till 31st August, 2015 in cases of those taxpayers who were required to file their tax-return by 31St July, 2015.
This date was further extended till 7th September, 2015 in case of taxpayers of Gujarat in view of dislocation of general life in that State in last week of August.
CBDT has further received representations that across the country, taxpayers had faced hardships in E-Filing Returns of Income on the last date i.e. 31st August, 2015 due to slowing down of certain e-services. Therefore, CBDT has extended the 'due-date' for E-Filing Returns of Income 7th September, 2015