Monthly Statutory Due Dates for Feb 2017

Date	Statutory Act	Applicable Form	Obligation
01/02/2017	GST	Online	GST enrollment start from Feb 1, 2017 for those persons who takes new registration under VAT/Service Tax /Central Excise after January 2016.
0 6/02/2017	Service Tax	Online	Payment of service tax electronically for the month of January 2017 for corporate assessee
06/02/2017	Central Excise	Challan No.GAR-7	Payment of Tax
07/02/2017	Income Tax	Challan No.-281	Payment of TDS/TCS deducted/collected in January 2017.
07/02/2017	Income Tax	Form No. 27C(TCS)	Submission of Forms received in Jan to IT Commissioner
10/02/2017	Excise	ER-1  -ER-2 & Er-6	Return for i) Non SSI assessees for January ii) for EOUs iii) Units paying Cenvat + PLA > One Crore respectively
13/02/2017	DVAT	DVAT-48	Return of TDS for Dec quarter in DVAT-48.
13/02/2017	DVAT	Form 16/17	Extended due date E Return on DVAT for the quarter ended Dec.
15/02/2017	Income Tax	Form 16A	Quarterly TDS Certificate (in respect of tax deducted for payments other than salary) for the quarter ending December 31, 2016.
15/02/2017	DVAT	DVAT20	Payment of DVAT TDS for January
15/02/2017	Provident Fund	Electronic Challan Return (ECR)	E Payment of PF for Jan
21/02/2017	ESI	ESI Challan	Payment of ESI of Jan(Applicable for Salary upto Rs. 21,000 instead of Rs. 15000 earlier)
21/02/2017	DVAT	DVAT20 & Central	E Payment of DVAT & CST Tax for month ended Jan
22/02/2017	DVAT	DVAT 43	Issue of DVAT Certificate for deduction made in Jan

BUDGET HIGHLIGHTS FINANCIAL YEAR 2017-18

Personal Taxation

·         The rates of income tax applicable are proposed to be as follows:

For individual/HUF/BOI/AOP/AJP taxpayers

Income Tax Slabs	Present Rate	Proposed Rate
Up to Rs. 2,50,000	No Tax	No Tax
Rs. 2,50,000 – Rs. 5,00,000	10%	5%
Rs. 5,00,000 – Rs. 10,00,000	20%	20%
Over Rs. 10,00,000	30%	30%

For taxpayers over the age of 60 but under the age of 80

Income Tax Slabs	Present Rate	Proposed Rate
Up to Rs. 3,00,000	No Tax	No Tax
Rs. 3,00,000 – Rs. 5,00,000	10%	5%
Rs. 5,00,000 – Rs. 10,00,000	20%	20%
Over Rs. 10,00,000	30%	30%

For taxpayers over the age of 80

Income Tax Slabs	Present Rate	Proposed Rate
Up to Rs. 5,00,000	No Tax	No change
Rs. 5,00,000 – Rs. 10,00,000	20%
Over Rs. 10,00,000	30%

·         The rebate of Rs. 5,000 currently available u/s 87A in case of an individual whose total income does not exceed Rs. 5 lakhs is proposed to be reduced to Rs. 2,500 where the total income does not exceed Rs. 3.5 lakhs.

·         Surcharge of 10% of tax payable is proposed to be levied on individuals whose annual taxable income is between Rs. 50 lakhs and Rs. 1 crore. Thereafter, surcharge of 15% would continue to be applicable on annual income exceeding Rs. 1 crore.

·         The income by way of gross dividend in excess of Rs. 10 lakhs in case of a resident individual/HUF/firm in India is proposed to be taxable in the hands of the recipient @ 10%.

Income Tax Returns

Return Form:

·      Simple one page form proposed to be filed as Income Tax Return for the category of individuals having taxable income upto Rs. 5 lakhs other than business income.

I Tax Return Revision and assessment in Scrutiny

·         The time period for revising a tax return is proposed to be reduced to 12 months from completion of financial year. The time for completion of scrutiny assessments is also proposed to be reduced from the present 21 months to 18 months for AY 2018-19 and thereafter to 12 months from 18 months for AY 2019-20.

Penalty for late filing of Income Tax Return

·         It is proposed to charge late fee of Rs. 5,000 u/s 234F for delay in filing of return as per section 139(1) up to 31^st December and Rs. 10,000 thereafter.

Housing Sector Taxation

·         It is proposed that 100% deduction of the profits would be allowed to an assessee developing and building affordable housing projects approved by the competent authority before 31^st March, 2019 and completed within 3 years of such approval.

·         It is proposed to restrict carpet area to 30 and 60 sq. mtr. as opposed to the restriction of built up area to 30 and 60 sq.mtr. Such 30 sq. mtr. limit will apply only in case of municipal limits of 4 metropolitan cities, wheras the limit of 60 sq. mtr. will apply for the rest of the country including the peripheral areas of metropolitans u/s 80IBA. The eligibility criterion is also proposed to be changed where the project can be completed in 5 years from commencement as opposed to 3 years.

Loss from house property on account of interest set off limited to 2 lacs in the same year

·         Set off loss under the head house property is restricted to Rs. 2 lakhs against other head of income in the same year and residual loss can be carried forward to subsequent 8 years.

Capital Gain Taxation

·         Base year for indexation for capital gain is proposed to be shifted to 01.04.2001 for all classes of assets from 01.04.1981.

·         The period of holding of immovable property for computing gain, being land or building or both to be long term is proposed to be reduced from 3 years to 2 years.

·         Fair value of unlisted shares is proposed to be taken as deemed sale value u/s 50CA for the purpose of calculation of Capital Gain tax.

·         LTCG exemption u/s 10(38) is available only in case STT is paid at the time of purchase (on and after 1.10.2004) and at the time of sale of equity shares.

·         For joint development agreement, the liability to pay capital gain tax will arise in the year in which project is completed.

·         In order to widen the scope u/s 54EC, the said section is proposed to be amended so as to provide that investment in any bond redeemable after 3 years which has been notified by the Central Government in this behalf shall also be eligible for exemption as opposed to exemption eligible only for investment in NHAI or RECL bonds presently.

Funding for Political Parties

·         No deduction to be allowed under section 80G in respect of donation by any mode other than cash, if such amount of donation exceeds Rs. 2,000 as opposed to the present limit of Rs, 10,000. Political parties will be entitled to receive donations by cheque or digital mode from donors.

Restrictions on Cash Transactions

·         No person would be permitted to receive an amount of Rs. 3 lakhs or more in cash from a person in a day or in respect of a single transaction or in respect of transaction relating to one event or occasion. Any such transaction would attract a penalty of an amount equal to the cash transaction unless there is sufficient reason for contravention of the said provision.

·         It is proposed to disallow cash payment exceeding Rs. 10,000 from the present Rs. 20,000 u/s 40A(3).

Business Taxation

·         The rate of income-tax for domestic companies is proposed to be reduced to 25% of the total income if the total turnover or gross receipts of the previous year does not exceed Rs. 25 crore, and shall be 30% of the total income in all other cases.

·         It is proposed to reduce the existing presumptive taxation rate u/s 44AD of 8% to 6%, in respect of the amount of such total turnover or gross receipts received by an account payee cheque or bank draft or bank clearing system. However, the existing rate of deemed profit of 8% shall continue to apply in respect of total turnover or gross receipts received in any other mode.

·         Threshold limit for audit of business entities that opt for presumptive income scheme is proposed to be increased from Rs. 1 crore to Rs. 2 crores.

·         The threshold limit for maintenance of books for individuals and HUF proposed to be increased from turnover of Rs. 10 lakhs to Rs. 25 lakhs or income from Rs. 1.2 lakhs to Rs. 2.5 lakhs. 

·         The time for completion of scrutiny assessments is proposed to be reduced from 21 months to 18 months for Assessment Year 2018-19 and further to 12 months for Assessment Year 2019-20 and thereafter.

·         Advance Tax can be paid in 1 instalment as opposed to 4 for professionals with annual receipts upto Rs. 50 lakhs under presumptive taxation scheme.

·         MAT credit u/s 115JAA is proposed to be carried forward for a period of 15 years instead of 10 years. Similar amendment is proposed in section Alternate Minimum Tax (AMT) u/s 115JD is also allowed to be carried forward up to 15 years.  

Tax Deducted at Source

·         TDS rate u/s 194J for person engaged only in the business of operation of call centre is proposed to be reduced to 2% from the present 10%.

·         It is proposed that Individual and HUFs responsible for making payments of rent exceeding Rs. 50,000 per month or part of a month would be required to deduct TDS of 5% of such income u/s 194IB.

Compiled by : Kashika  at Sandeep Ahuja & Co.

File response in compliance of query for Cash Deposits during 09-11-2016 to 30-12-2016

The Income Tax department has asked taxpayers to verify online the deposits they have made in their accounts post de-monetization and respond to queries of any mismatch. Such response is desired to be filed within 10 days of such intimation through mail. Such mail is being sent by the department on both the E mail IDs in profile of the assessee on Income Tax Portal.

The department is using data analytics for comparison of deposits made after the November 8 decision to scrap high-value banknotes with information in its database to identify taxpayers whose cash transactions do not appear to be in line with the tax-paying profile.
With a view to avoiding undue harassment, it has now enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimizing its resources.
To help taxpayers, it has now brought out a user guide.
Online Verification of Cash Deposits during 9th November to 30th December 2016 Data analytics has been used for comparison of demonetization data with information in ITD databases to identify taxpayers wherein the cash transaction does not appear to be in line with the taxpayer’s profile.

Taxpayers who are not yet registered on the e-filing portal (at https://incometaxindiaefiling.gov.in) should register by clicking on the ‘Register Yourself’ link. Registered taxpayers should verify and update their email address and mobile number on the e-filing portal to receive electronic communication.

The information relating to cash deposits will be displayed to the PAN holder in the e-filing portal (after log in). The taxpayer can view the information as under: 

Step 1: Login to e-filing portal at https://incometaxindiaefiling.gov.in.

·  Step 2: Click on “Cash Transactions 2016” link under “Compliance” section

.·  Step 3: The details of transactions related to cash deposits during 9th Nov to 30th Dec 2016 will be displayed.

 Submission of response

The user is provided with two options i.e. “The account relates to this PAN” and “The account does not relate to this PAN”. If the user selects the response option “The Account does not relate to this PAN” then message “Your feedback will be sent to the information source for confirmation.” will be displayed. If the user selects the response option “The account relates to this PAN” the screen for capturing details will be displayed to the user. At this stage, the user will be able to modify the value of cash deposit (if it is different than the displayed value). The user will also be able to provide the explanation of transaction (source of cash deposit). The various categories for providing the explanation of cash deposit are:

·        Cash out of earlier income or savings

·         Cash out of receipts exempt from tax

·          Cash withdrawn out of bank account

·          Cash received from identifiable persons (with PAN)

·         Cash received from identifiable persons (without PAN)

·          Cash received from un-identifiable persons

·         Cash Disclosed/To be disclosed under PMGKY

In case the taxpayer claims that cash was received from other persons, the person wise details is required to be submitted electronically in csv format as given by Income Tax Department in csv template download.

The Particulars of details are as follows:

Ø PAN Wise List of persons with transaction details

PAN of person

Name of person

Nature of Transaction

Amount Received

Remarks

Ø Account Wise List

Bank/Institution

IFS Code( in case of Bank account)

Account Number

Amount Withdrawn

Remarks

Ø Person Wise List for identifiable persons ( without PAN)

Name of person

Address of person

Pincode of person

Nature of transaction

Amount Received

Remarks

Ø Transaction Wise List from unidentifiable persons

Nature of transaction

Amount Received

Remarks

 The user is also required to submit details of other bank accounts (other than the one displayed) in which specified bank notes (SBN) has been deposited.

Special Care:

ü After downloading the template file. The Assessee can fill in the information and save file without special characters and without changing the file format with option available in save as file as csv (comma Delimited)  *.csv format.

ü After creating the file in excel save the file in *.csv file browse for the file so saved at choose file option of the relevant info column and then select upload file.

ü After uploading the files for all the options of sources of cash it will show in the last column the balance unexplained.

ü Before unexplained cash balance there is option in B-7

Cash Disclosed / to be disclosed in PMGKY

Remarks

ü Submit or Back – Select Submit

Edit the response

ü After submitting successfully massage is being sent to mail.

ü The assessee has the option to View and Edit the same any time after that.

ü There is one option which nobody should forget that if the bank account where cash has been deposited if not shown now in the data base but account has been used for deposit of cash can be reported now at the time of filing response.

Verification of case

 Data analytics will be used to select cases for verification based on approved risk criteria. If the case is selected for verification, request for additional information and its response will also be communicated electronically. The information on the online portal is dynamic and will be updated on receipt of new information, response and data analytics.

Compiled by: Suhasini Dang ( CA Finalist) at Sandeep Ahuja & Co