Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Wednesday, July 27, 2016

Filing of Income Tax Return for Asst Year 2016-17 :Due dates, whether mandatory and additional disclosures

Filing of Income Tax Return for Asst Year 2016-17
Whether Mandatory or not 
Due dates for filing of Income Tax Returns
Benefits of filing ITR before due dates
Additional Disclosures

Mandatory Filing:
-          For Companies and partnership firms.
-          For Individuals, HUFs and association of persons income tax return filing is mandatory if gross total income is exceeds the minimum exemption limit. The gross total income is income without giving effect of section 10 for exemption of income from tax or deductions under chapter VI of the Income Tax Act. So in case of Individuals return filing is not mandatory if gross income is less than maximum exemption limit.
-          For resident senior citizen aged 60 years and above but less than 80 years if income is above Rs.300000/-
-          For resident super senior citizen aged 80 years or above if income is above Rs.500000/-
-          For any other individual or HUF ( Not Senior Citizen or Super Senior) if income is above Rs.250000/-
-          It is mandatory to file income-tax return by newly inserted provision to section 139(1) if assessee is resident and having
a)      Assets located outside India
b)      Signing Authority in any bank account outside India
c)      Financial interest in any entity located outside India
d)     Income from any source outside India.

The assessee is required to provide details in income tax return for Assessment Year 2016-17 particulars of such foreign assets, banks accounts where in having signing authority and other financial interests in entities outside India.
Rates of Income Tax for Asst Year 2016-17
Class of persons
Tax slab (Amount)
Tax rate
Resident senior citizen above the age of 60 years but below the age of 80 years
Up to Rs. 3,00,000
Nil
Rs. 3,00,000 to Rs. 5,00,000
10%
Rs. 5,00,000 to Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Resident super senior citizen with age of 80 years or above
Up to Rs. 5,00,000
Nil
Rs. 5,00,000 to Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Any other individual or HUF other than senior citizen or super senior
Up to Rs. 2,50,000
Nil
Rs. 2,50,000 to Rs. 5,00,000
10%
Rs. 5,00,000 to Rs. 10,00,000
20%
Above Rs. 10,00,000
30%

Less: Rebate under Section 87A [see Note]
Add: Surcharge and Education Cess [see Note]
 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).
 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.
 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.
 d) Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 2,000, whichever is less.

Due Dates of Income Tax Returns for Assessment Year 2016-17
Category of Assessee
Due date of filing of Income Tax return
All Assessees not subjected to audit under any Section of Income Tax Act,1961

All Company Assessees and all other assessees subjected to Tax audit under section 44AB including Co-operative Societies
31st July 2016


September 30, 2016

All assessees subjected to  transfer pricing audit for furnishing report in Form No. 3CEB
November 30, 2016
Benefits of filing of Income Tax Returns before due dates
Right to revise:
The assessee  gets the right to revise the return if it is filed before the due date and later on want o revise the return due to some mistake or any income has escaped or some TDS has not been claimed in Original Return. The belated return can not be revised.
Right to interest on refund due from 1st April till refund is processed by the Income Tax Authorities
The Assessee is entitled for interest @6% per annum for any refund due to assessee for the period from 1st April till the refund is processed by the Income Tax authorities.
In case of belated return the Assessee is not entitled for the period from 1st April till date of filing of return.
Carry forward and set off of losses
The assessee gets the right of carry forward of losses to be set off against incomes of nextyears but if fails to file before the due date he has the right for carry forward of losses under head a) Income from House property and Depreciation loss under the head business and profession income and losses the right to carry forward of losses under the head a) business or profession b) Capital gain.
File before 31st March of the relevant financial year if miss the due date
Penalty if Assessee does not file Income Tax return before 31st March

If assesee does not file the Income Tax Return even by 31st March of the relavant financial year i.e immediately after the financial year for which return is to be filed a penalty of Rs.5000/- may be imposed by the tax authorities even if no tax is due and assessee is not able to provide a reasonable cause for such delay. 

Additional disclosures in Form ITR 1 and ITR 2 for Asst Year 16-17

Earlier Statement of Assets and liabilities was required to be disclose for the assessees having income above Rs.25 lacs but for Asst Year 2016-17 this threshold limit for disclosure of assets and liabilities has been increased from Rs.25 Lacs to Rs.50 Lacs.

For the assessees having income above Rs.50 Lacs  and filing ITR 1 and 2 it is mandatory to disclose :
1. Immovable Assets a) Land b) Building
2. Movable Assets a) Cash in Hand b) Jewellery, Bullion etc c) Vehicles

3. Any Liability in relation to above assets only


2 comments:

  1. If our company has forex income, can we file ITR by Nov 30th with taking losses carried forwarded?

    Bharat Bhushan

    ReplyDelete
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