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  • Income Tax for FY 2017-18 | Check Slab Rates, Calculation & News

    Overview:

    Income tax is that percentage of your income that you pay to the government to fund infrastructural development, pay the salaries of those employed by the state or central governments, etc. All taxes are levied based on the passing of a law, and the law that governs the provisions for our income tax is the Income Tax Act, 1961.

    Income tax is only of the direct means of taxation like capital gains tax, securities transaction tax, etc., and there are many other indirect taxes that we pay like sales tax, VAT, Octroi, service tax, etc.

    The income tax you pay every month or upon every contractual earning is what forms a large part of the revenue for the Government of India. These revenue functions are managed by the Ministry of Finance, which has delegated the responsibility to managing direct taxes (like income tax, wealth tax, etc.) to the Central Board of Direct Taxes (CBDT).

    Income Tax - In Detail Income Tax Slab Rates Income Tax Return
    Income Types Income Tax E-Filing News About Income Tax

    Income Tax

    Income tax is applicable for individuals, businesses, corporate, and all other establishments that generate income. The Income Tax Act, 1961 regulates the collection, recovery, and administration of income tax in India. The government requires the tax amount for various purposes ranging from building the infrastructure to paying the state and central government's employees. It helps the government in generating a steady source of income that is used for the development of the nation.

    The income tax is paid every month from the monthly earnings, however, it is calculated on an annual basis. The amount of income tax an individual has to pay depends on many factors.

    Income Tax Department

    Under the Department of Revenue of the Ministry of Finance, the Income Tax Department (IT Department) is responsible for monitoring the collection of Income Tax, Expenditure Tax, and various other Financial Acts that are passed every year in the Union Budget. The Central Board of Direct Taxes (CBDT) regulates the policy and planning of taxes. CBDT is also responsible for administering the direct tax laws through the IT Department. In addition to the collection of taxes, the IT department is also involved in prevention and detection of tax avoidance.

    New Income Tax Changes from April 1 by Income Tax Department

    In the Budget of 2017, several changes related to income tax were announced. These changes will come into effect from April 1, 2017. Some of the important changes are as follows:

    • The income tax rate for people earning Rs.2,50,000 to Rs.5 lakh per year has come down to 5%, but people earning over Rs.50 lakhs p.a. will have to pay an additional surcharge along with the applicable tax rate. The surcharge is 10% for people earning an income of Rs.50 lakhs to Rs.1 crore and the surcharge is 15% for people earning an income of over Rs.1 crore.
    • Filing of ITR will become easy for people earning up to Rs.5 lakhs as the government will introduce a simplified 1 page form for them. People who file their ITR using this form for the first time will not be scrutinized by the Income Tax Department.
    • No deductions can be claimed for investments made under the Rajiv Gandhi Equity Saving Scheme from AY (Assessment Year) 2018-2019.
    • People will have to pay a penalty of Rs.5,000, if they do not file ITR for the present FY (Financial Year) on time (latest by December 31). If they file after December 31, the fine amount will increase. The fine is capped at Rs.1,000 for people who earn up to Rs.5 lakhs annually.
    • According to a report by Economic Times, the holding period for long term immovable property has been reduced to 2 years. It was 3 years before. Also, if such property is held beyond 2 years, it will be taxed at 20% and will be eligible for reinvestment and exemptions.
    • In case of long term capital gains tax, the base year for cost indexation has been changed from April 1, 1981 to April 1, 2001. Tax exemption will be available, if people re-invest in some selected redeemable bonds. The exemption will also be available for investments in REC and NHAI bonds.
    • From June 1, 2017, people whose rental payments are more than Rs.50,000 per month have to subtract 5% TDS.
    • From July 1, 2017, people will not be able to file their ITR without Aadhaar.
    • People who make partial withdrawals from NPS (National Pension System) do not have to pay tax on the same. They can withdraw 25% of their own contribution before retiring in case of emergencies.
    • Health, Two-wheeler and Car insurance premiums may increase from April 1, 2017.
    • People who do not keep a minimum of Rs.5,000 per month in their SBI accounts will have to pay penalty from April 1, 2017.

    Apart from these, there are other changes that will be introduced. People are advised to keep themselves updated about these changes as they may have a direct impact on their income tax.

    Income Tax - In Detail:

    Income tax has to be paid by every individual person, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), corporate firms, companies, local authorities and all other artificial juridical persons that generate income.

    Taxes are calculated on the annual income of a person, and an annual cycle (year) in the eyes of the Income Tax law starts on the 1st of April and ends on the 31st of March of the next calendar year. The law recognizes and classifies the year as “Previous Year” and “Assessment Year”.

    The year in which income is earned is called the previous year and the year in which it is charged to tax is called the assessment year.

    For example: Income earned between April 1st 2014 and March 31st 2015 is called the income of the previous year and will be charged to tax in the next year, or the assessment year that starts on April 1st 2015.

    Taxes are collected by the government in three primary ways:

    1. Voluntary payment by taxpayers into designated banks, like advance tax and self-assessment tax.
    2. Taxes Deducted at Source (TDS) which is deducted from your monthly salary, before you receive it.
    3. Taxes Collected (TCS).
    Income Tax

    Income Tax Slab Rate:

    Income tax slab rates are for different categories of taxpayers, who are taxed progressively higher based on their earning. The income tax slab rates can be broadly classified into the following categories:

    New Income Tax Slab Rates for FY 2017-18 (AY 2018-19)

    Income tax slab for individual tax payers & HUF (less than 60 years old) (both men & women)

    Income Slab Tax Rate
    Income up to Rs. 2,50,000* No Tax
    Income from Rs. 2,50,000 – Rs. 5,00,000 5%
    Income from Rs. 5,00,000 – 10,00,000 20%
    Income more than Rs. 10,00,000 30%
    Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs. 1 crore.
    Cess: 3% on total of income tax + surcharge.
    * Income upto Rs. 2,50,000 is exempt from tax if you are less than 60 years old.

    Income tax slab for individual tax payers & HUF (60 years old or more but less than 80 years old) (both men & women)

    Income Slab Tax Rate
    Income up to Rs. 3,00,000* No Tax
    Income from Rs. 3,00,000 – Rs. 5,00,000 5%
    Income from Rs. 5,00,000 – 10,00,000 20%
    Income more than Rs. 10,00,000 30%
    Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs.1 crore.
    Cess: 3% on total of income tax + surcharge.
    * Income up to Rs. 3,00,000 is exempt from tax if you are more than 60 years but less than 80 years of age.

    Income tax slab for super senior citizens (80 years old or more) (both men & women)

    Income Slab Tax Rate
    Income up to Rs. 2,50,000* No Tax
    Income up to Rs. 5,00,000* No Tax
    Income from Rs. 5,00,000 – 10,00,000 20%
    Income more than Rs. 10,00,000 30%
    Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs.1 crore.
    Cess: 3% on total of income tax + surcharge.
    *Income up to Rs. 5,00,000 is exempt from tax if you are more than 80 years old.
    1. Income Tax Slab for Individuals and Hindu Undivided Families:

    These are the slab rates for FY 2016-17 (AY 2017-18) These income tax slab rates are also applicable for : FY 2015-16 (AY 2016-17) FY 2014-15 (AY 2015-16)

    On all the tables listed below, Education Cess of 2% and SHEC of 1% will be levied on the tax computed using the rates given below.

    Under Section 87(A), an Income Tax Rebate of Rs.2,000 is provided for all individuals earning an income that’s less than Rs.5,00,000 per annum.

    • Tax applicable for individuals below 60 years
    Annual Income Tax Rates Education Cess Secondary and Higher Education Cess
    Up to Rs.2,50,000 Nil Nil Nil
    Rs.2,50,001-Rs.5,00,000 5% 2% of income tax 1% of income tax
    Rs.5,00,001-Rs.10,00,000 Rs.12,500 + 20% 2% of income tax 1% of income tax
    Above Rs.10,00,000 Rs.1,12,500 + 30% 2% of income tax 1% of income tax
    • Tax applicable for individuals over 60 years and under 80 years
    Annual Income Tax Rates Education Cess Secondary and Higher Education Cess
    Up to Rs.3,00,000 Nil Nil Nil
    Rs.3,00,001-Rs.5,00,000 5% 2% of income tax 1% of income tax
    Rs.5,00,001-Rs.10,00,000 Rs.10,00 + 20% 2% of income tax 1% of income tax
    Above Rs.10,00,000 Rs.1,10,000 + 30% 2% of income tax 1% of income tax
    • Tax applicable for individuals over 80 years and above
    Annual Income Tax Rates Education Cess Secondary and Higher Education Cess
    Up to Rs.5,00,000 Nil Nil Nil
    Rs.5,00,001-Rs.10,00,000 20% 2% of income tax 1% of income tax
    Above Rs.10,00,000 Rs.1,12,500 Rs.1,00,000 + 30% 2% of income tax 1% of income tax

    Income Tax should be deducted at applicable rates as above along with surcharge and Education Cess. The individuals who are earning over Rs.50 lakh and under Rs.1 crore will be required to pay a surcharge of 10% tax on the total income and the individuals who are earning over Rs.1 crore, a surcharge of 15% will be applicable as the income tax.

    1. Businesses:

    The following tables indicate the tax slabs for businesses.

    • Income Tax Slab for Co-operative societies :
    Income Tax Slab Tax Rates
    Total income less than Rs.10,000. 10% of the income.
    Total income greater than Rs.10,000 but less than Rs.20,000. 20% of the amount by which it exceeds Rs.10,000.
    Total income greater than Rs.20,000. 30% of the amount by which it exceeds Rs.20,000.
    Income Tax
    • Firms, Local Authorities, Corporates and Domestic Companies:
    • Income tax slab rates do not apply for these, as they are taxed at a flat rate of 30% on the total income declared.
    • A surcharge of 5% is levied on the total income tax of domestic companies if their income exceeds Rs.1 crore. This surcharge does not apply to firms and local authorities.

    Income Tax Refund

    The government provides an option to save on tax amount by making certain kind of investments. These kinds of investments can be declared for tax exemption under Section 80C and 80D. The Section 80C allows an individual to reduce up to Rs.1,50,000 as investment amount that can be claimed from the annual income. The Section 80D deals with the tax deduction on medical insurance for up to Rs.25,000 for a financial year.

    There are many instances when an individual declares more tax amount at the beginning of a financial year than the actual chargeable tax amount. This could be due to investment decision made at a later or mid-year stage or due to investments which provide tax exemption that you have not declared.

    An individual can claim for the tax refund by filing the Form 16. Components such as HRA (House Rent Allowance), life insurance premium amount, investments in mutual funds, equity, fixed deposit, tuition fee etc, are included in Form 16 to be declared as investments.

    Online Income Tax Refund Status

    An individual can visit the website - https://incometaxindiaefiling.gov.in/ to check the status of income tax refund for a particular financial year. Alternately, an email is sent by the IT department with the details of the refund as well. The individual can also call the CPC Bangalore on 1800-4250-0025 (toll-free) number to check for the status of the income tax refund.

    Tax Due Dates for the Month of May

    May

    7th May, 2017 -

    The due date for deposit of Tax collected/deducted for the month of April, 2017. All sum collected/deducted by an office of the government shall be paid to the Central Government on the same day of transaction where tax is paid without producing an Income-tax Challan.

    15th May, 2017 –

    • The due date for issue of the TDS Certificate for tax deducted under section 194-IA for the month of March, 2017.
    • The due date for complete the Form 24G by an office from the Government where TDS for the month of January, 2017 has been paid without the furnishing of a challan.
    • The quarterly statement of TCS deposited for the quarter ending March 31, 2017.

    30th May, 2017

    • The quarterly TCS certificates with regard to tax collected during the quarter ending March 31, 2017.
    • The submission of a statement (in Form No. 49C) by non-resident having a liaison office in India for the financial year 2016-17.
    • The due date for producing the challan/statement with regard to tax deducted in the month of April, 2017 - under Section 194-IA..

    31st May, 2017 - The quarterly statement of TDS deposited for the quarter ending March 31, 2017.

    • The certificate of TDS to employees with regard to the salary paid and tax deducted during 2016-17.
    • The return of tax deduction from contributions paid by the trustees of an approved superannuation fund.
    • The due date for completing the statement of financial transaction (in Form No. 61A) as required to be furnished under sub-section (1) of section 285BA of the Act respect of a financial year 2016-17.
    • The due date for e-filing of annual statement of accounts as required to be reported under section 285BA(1)(k) (in Form No. 61B) for calendar year 2016 by reporting financial institutions.

    Income Tax Return (ITR):

    If an individual need to claim for income tax refund, he/she will need to fill up the required Income Tax Return (ITR) form. Depending on the income assessment group, the individual will need to submit one of the ITR forms listed below:

    ITR Form Name Description
    ITR-1 For Individuals having Income from Salaries, One house property, Other sources (Interest etc.)
    ITR-2 For Individuals and HUFs not having Income from Business or Profession
    ITR-2A For Individuals and HUFs not having Income from Business or Profession and Capital Gains and who do not hold foreign assets
    ITR-3 For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
    ITR-4 For individuals and HUFs having income from a proprietary business or profession
    ITR-4S Presumptive business income tax return
    ITR-5 For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7
    ITR-6 For Companies other than companies claiming exemption under section 11
    ITR-7 For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)
    ITR-V The acknowledgment form of filing a return of income

    In order to file the ITR, an individual will require producing the bank statement, Form 16, and a copy of previous years' return. The individual will need to visit the Income Tax Department's website - https://incometaxindiaefiling.gov.in/ to register and file the returns.

    Save Income Tax

    Declaring investments - From HRA, Life Insurance Premiums, National Savings Certificate, Leave Travel Allowance to Fixed Deposit (minimum of 5 years), ELSS Tax Saving Mutual Funds, and more, by ensuring that you have declared all your investments, you can achieve more deductions on tax. The following options can be considering for saving on income tax:

    • Investment options

      • Mutual funds such as Equity Linked Savings Schemes (ELSS) can be claimed for tax deduction under Section 80C. Compare to fixed deposits and PPF’s, the ELSS offers shorter lock-in period and more benefits when it comes to making money.
      • Unit Linked Insurance Plans (ULIP) are insurance schemes that are linked to the market. The investment made under ULIP qualifies for tax deductions.
    • Insurance

      • Life insurance and health insurance - The money paid towards life insurance and health insurance policies are considering for tax deductions under Section 80C
    • Loans

      • When we take a loan for buying a house or for renovation purpose, we are eligible for tax deductions up to Rs.1,50,000 for a financial year.

    You can also consider the following options for reducing tax amount on your income:

    • Fixed Deposits (FD) - An FD with a lock-in period of five years can help you save on tax while earning the interest on the deposited amount.
    • National Saving Certificate (NSC) - The NSC offers a safe and reliable method of investing money. You can deposit as low as Rs.100 for a 5-10 year lock-in period. The investments made under NSC are eligible for tax deductions.
    • Provident Fund (PF) - You can also choose to invest more amount towards your PF account that will help you reduce your taxable amount.

    Calculate Income Tax

    The income tax can be calculated by adding total income from salary, property, capital gains, and income from all other sources, and then, by reducing the deductions that can be declared as investments. Once you have taken out the deductions as your investments, you can clearly see the amount of tax you are liable to pay.

    Income Tax Forms

    The most frequently used Income Tax Forms are:

    Form Description
    Form No. : 3CA Audit report under section 44AB of the Income-tax Act, 1961 in a case where the accounts of the business or profession of a person have been audited under any other law
    Form No. : 3CB Audit report under section 44AB of the Income-tax Act, 1961, in the case of a person referred to in clause (b) of sub-rule (1) of rule 6G
    Form No. : 3CD Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961
    Form No. : 3CEB Report from an accountant to be furnished under section 92E relating to international transaction(s)
    Form No. : 10A Application for registration of charitable or religious trust or institution under section 12A(1)(aa) of the Income-tax Act, 1961
    Form No. : 10B Audit report under section 12A(b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions
    Form No. : 15CA Information to be furnished for payments, chargeable to tax, to a non-resident not being a company, or to a foreign company
    Form No. : 15CB Certificate of an accountant
    Form No. : 15G Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax
    Form No. : 15H Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual who is of the age of sixty years or more claiming certain receipts without deduction of tax
    Form No. : 16 Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source from income chargeable under the head "Salaries"
    Form No. : 16A Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source
    Form No. : 26AS Annual Tax Statement under section 203AA
    Form No. : 35 Appeal to the Commissioner of Income-tax (Appeals)
    Form No. : 36 Form of appeal to the Appellate Tribunal
    Form No. : 49A Application for allotment of Permanent Account Number under section 139A of the Income-tax Act, 1961
    Form No. : 49AA Application for Allotment of Permanent Account Number [Individuals not being a Citizen of India/Entities incorporated outside India/ Unincorporated entities formed outside India]
    Form No. : 49B Form of application for allotment of Tax Deduction and Collection Account Number under section 203A of the Income-tax Act, 1961
    Form No. : 60 Form of declaration to be filed by a person who does not have a permanent account number and who enters into any transaction specified in rule 114B

    Income Types or Taxable Heads of Income:

    Income from different sources is taxed differently. These sources are called heads of income and are as follows:

    1. Income From Salaries:
    2. All income received from an employer by an employee is taxed under this heading. Employers are bound to withhold tax compulsorily under Section 192 if the income of their employees falls under a taxable bracket. Employers must also provide a Form 16, which contains details of tax deductions and net paid income.
    3. Income from House Property:
    4. Income here is taxable if the assesse is the owner of a property that’s been given out on rent. The property should not be used for business or professional purposes. Individuals and HUFs can claim one property as “self-occupied”, which means you and your family live there, and do not have to pay taxes on this. (Learn more about calculating income from house property)Income from house property is calculated as under:
    5. Gross Annual Value (GAV) = x
    6. Less: Municipal Taxes Paid = (y)
    7. Net Annual Value = x-y
    8. Less: Deductions under Section 24 = z
    9. Income from House Property = (x-y) – z
    10. Profits and Gains Of Business or Profession:
    11. These are the taxes that will be applicable for income from business or professional services rendered. The provisions for computing the tax on this type of income is in accordance with Sections 30 to 43D.
    12. Income from Capital Gains:
    13. This is for the taxes applicable on income that arises when capital assets are transferred. Capital assets are property of any value that’s held by the assesse like land, buildings, equity shares, bonds, debentures, jewellery, art, assets, etc. (Learn more about calculating capital gains)
    14. Income from Other Sources:
    15. Basically, any source of income that cannot be classified under the above heads of income falls under this heading. There are also some specific and pre-determined incomes which fall under this heading, like:
      • Income by way of dividends.
      • Winnings from horse races / lotteries.
      • Employee’s contribution towards staff welfare schemes, any fund set up under the ESIC Act that’s received by the employer from the employees.
      • Interest on securities like debentures, government securities and bonds.
      • Gifts.
      • Interest on compensation.
      • Rental income other than house property.
      • Family pension received after the death of the pensioner.
      • Interest income that is earned other than by way of securities.

    (Learn more about calculating income tax on income from other sources)

    Income Tax E-Filing:

    You can e-file your Income Tax Return, TDS return, AIR return and Wealth Tax Return online through this link https://incometaxindiaefiling.gov.in/. E-filing your return has obvious advantages like the fact that you won’t have to deal with the hassle of paperwork and waste time sorting through it all. You can simply log on to the secure website and e-file your return. (Learn more about e-file your IT returns in Online)

    This government website also has provisions for you to submit returns, view forms 26AS, outstanding tax demand, CPC refund status, rectification status, ITR – V receipt status, online application tools for PAN and TAN, e-pay your tax and even has a tax calculator.

    Deductions:

    Deductions for your taxable amount are available under various sections of the Income Tax Act , 1961

    Section 80C:

    Deductions under this section are only available to individuals and HUF. This section allows for certain investments like NSC, etc. and expenditures to be exempt from taxation up to the amount of Rs. 1,50,000.

    Section 80CCC:

    Deductions under this section are on payments made to LIC or any other approved insurance company under an approved pension plan. The pension policy must be up to Rs.1,50,000 and be taken for the individual himself out of the taxable income.

    Section 80CCD:

    Deductions under this section are for contributions to the New Pension Scheme by the assesse and the employer. The deduction is equal to the contribution, not exceeding 10% of his salary.

    The total deduction available under Section 80C , 80CCC and 80CCD is Rs.1,50,000. However, contributions to the Notified Pension Scheme under Section 80CCD are not considered in the Rs.1,50,000 limit.

    Section 80D:

    This is the section that deals with income tax deductions on health insurance premiums paid. In the case of individuals, the insurance policy can be taken to cover himself, spouse, dependent children – for up to Rs.15,000 and parents (whether dependent or not) – for up to Rs.15,000. An additional deduction of Rs.5,000 is applicable if the insured is a senior citizen. In the case of HUF, any member can be insured and the general deduction will be for up to Rs.15,000 and an additional deduction of Rs.5,000.

    A total of Rs.2,00,000 can be claimed as deductions whether the assesse is an individual or a HUF.

    Section 80DDB:

    This section is for deductions on medical expenses that arise for treatment of a disease or ailment as specified in the rules (11DD) for the assesse, a family member or any member of a HUF.

    Section 80E:

    This section deals with the deductions that are applicable on the interest paid on education loans for an education in India.

    Section 80EE:

    This section deals with tax savings applicable to first time home-owners. Applies for individuals whose first home purchased has a value less than Rs.40 lakh and the loan taken for which is Rs.25 lakh or less.

    Section 80RRB:

    Deductions with respect to income by way of royalties or patents can be claimed under this section. Income tax can be saved on an amount up to Rs.3,00,000 for patents registered under the Patents Act, 1970.

    Section 80TTA:

    This section deals with the tax savings that are applicable on interest earned in savings bank accounts, post office or co-operative societies. Individuals and HUFs can claim a deduction on an interest income of up to Rs.10,000.

    Section 80U:

    This section deals with the flat deduction on income tax that applies to disabled people, when they produce their disability certificate. Up to Rs.1,00,000 can be non-taxed, depending on the severity of the disability.

    Section 24:

    This section deals with the interest paid on housing loans that is exempt from taxation. An amount of up to Rs.2,00,000 can be claimed as deductions per year, and is in addition to the deductions under Sections 80C, 80CCF and 80D. This is only for self occupied properties. Properties that have been rented out, 30% of rent received and municipal taxes paid are eligible for tax exemption.

    Learn more about Income Tax deductions from under Section 80C to 80U.

    TDS:

    TDS or Taxes Deducted at Source - is a system incorporated by the Income Tax Law to deduct taxes before the income has been disbursed to the person earning it. It is charged depending on your income tax slab, at its point of origin. You do not get a full amount from which to deduct an income tax amount and pay it back, but get charged even before you’ve earned your income.

    The income tax here is deducted by the payer and remitted to the government on your behalf.

    TDS on income will not apply if your net taxable income is below Rs.2,50,000 for individuals, Rs.3,00,000 for senior citizens and Rs.5,00,000 for super senior citizens.

    It’s important to know which tax bracket one falls under and the investments that can be made to exempt a portion of the income from taxation. A lot of money can be saved through investments, and this helps the flow of funds through investible channels in the economy, thus helping the country develop. Health insurance policies, investments and other deductions can be used to your benefit, if you balance them out well.

    Making relevant investments can help save a lot on tax, and earn a lot in eventual interest income. Most tax-saving investments have lock-in periods where the funds cannot be accessed, and in this time compound interest at a rate higher than most savings bank accounts.

    Learn more about TDS.

    Articles to Help You File Income Tax

    Income tax can seem like a tedious job for most people, and it has everything to do with the fact that there are a lot of details and nitty-gritties involved in calculating and paying income tax. But, if you want to get a clear picture that is simplistic and easily comprehensible about filing taxes and on the related subjects, read the pages given below.

    How to Pay Income Tax Which is Due?

    There is a lot to know about income tax payment that are already due when you already have an overwhelming notification to deal with when it comes to unpaid income tax returns. It is essential to know the details of advance or self-assessment tax as well as things you should have to consider, when paying your due taxes.

    How to e-file Income Tax Return?

    You need to know all the details involved in filing taxes to be able to file your income tax returns, online. This includes the reasons to file your incomes tax returns as well as the types of ITR filing as there are several types and ways to do it online. A step by step and detailed approach of how to file income tax returns will help you also to avoid errors, since it has to accurate at the first go.

    Income Tax Slab and rates for FY 2016-17 and AY 2017-18

    In the current running financial year, when filing your tax returns, one needs to be aware of all the details in the tax slabs. It will help to calculate the tax that you owe but you also need to know your particular category of income tax slab which may vary based on groups and demographics. Hence the latest income tax slab is essential even when it comes to clearing due taxes for 2016-17, in the future.

    Form 16

    This piece of document declares all your income tax, by your employer and is of utmost importance. It has several components that one needs to be aware of. One important thing about this form are the divisions of the documents that have to be filled in carefully. The requirement of Form 16 is also essential to understand as an employee.

    Income Tax Refund

    This is another important aspect of filing taxes. You would always want to save on your hard-earned money and this page helps you to understand the ways that you can get refunds. In other words, like Uber and PayTM, Indian income tax allows you to get some money back. But for that you have to make some savings investments wisely.

    How to Claim TDS Refund?

    You need to know how to claim TDS refund as it may seem tedious in the beginning but knowledge would help. You may also find it easier to claim TDS refund that actual tax filing since it is an online process.

    News About Income Tax

    • Income Tax Refunds: Important Points You Must Know

      Following the filing of income tax returns, the tax authorities process them before refund orders are generated and transmitted to the SBI’s (State Bank of India) CMP Branch in Mumbai, which is the income tax refund banker. There are two ways through which refunds may be processed: cheque and direct credit.

      In case the refund is being done through direct credit, it is essential to ensure that the correct bank account number, communication address, IFSC code of bank branch and MICR ae mentioned in the income tax return so that the refunds can be processed through NECS or RTGS.

      In case the refund is processed through cheque, make sure that the IFSC /MICR details of the bank account in the returns are mentioned correctly, else a cheque shall be issued to the account number provided in the return.

      The status of the refund can be checked on https://tin.tin.nsdl.com/oltas/refundstatuslogin.html. The status will be available within 10 days of the processing of the refund. Information like PAN and the assessment year must be submitted to generate refund status. The status of the refund can also be found in the tax credit statement in Form 26AS.

      In case the refund is not credited to the account through direct credit or cheque, a reissue request has to be raised on the income tax portal. The address / IFSC code / bank account number must be updated so that the department can reissue the refund. After the refund is received, it is essential to keep the income tax payment challan counterfoil safe.

      4th September 2017

    • Aadhaar-PAN linking deadline may be extended

      Following the announcement of linking of Aadhaar and PAN card to be mandatory for e-filing of ITR and the deadline to be 30th of June, the taxpayers are uncertain whether their PAN will be considered invalid since most of them have not linked their Aadhaar to their PAN yet. This decision has been taken by the government to curb the usage of fake/invalid PAN for tax evasion. Moreover, the linking of Aadhaar will ensure that the taxpayers are provided with one PAN card only. The fresh applications for PAN card must contain the Aadhaar number in order for it to get approved. Post the Aadhaar-PAN linking deadline, there are speculations that the government, through the Income Tax Department will come up with possible methods to extend the deadline for the linking or provide an alternative solution for the moment.

      6th July 2017

    • Prime minister Narendra Modi’s demonetisation move increases IT returns filed

      The total number of people who have filed for their income tax returns has gone up by a huge number. With this black money drive initiated by Prime Minister Narendra Modi, the income tax department got 95 lakh additional income tax filing request.

      This particular figure was put in a presentation by the revenue department for Prime Minister Narendra Modi’s review. As per the government, they have been trying to widen tax net slightly over 1% of the total population that pays income tax. In financial year 2016, 5.28 crore income tax returns were submitted. This meant a substantial rise of 22% over financial year 2015. Some of the income tax returns were also filed in paper mode.

      As a stand against all the black money in the market, the income tax department started tracking down all the tax evaders. The department then identified a massive number of people (18 lakh) who deposited old notes of Rs 500 and Rs 1000 after the demonetization day (November 8). The income tax department also has information about the high value purchases that were made during the demonetization period. This information was used for the identification of the tax evaders.

      3rd May 2017

    • Government to Scrutinize Income of Over 60,000 People

      The Government has decided to scrutinize the income of more than 60,000 people who had too much cash sales during the demonetization period last year. Demonetization had helped the Indian Government in detecting around Rs.10,000 crore worth of black money. Tax notices has been sent to people seeking an explanation about the source of income. People whose income do not match with their bank deposits will be scrutinized heavily.

      On January 31, Operation Clean Money was launched to find out the funds that are deposited in banks and utilised for making high-valued purchases. Through this operation, the government identified over 60,000 people (includes 1,300 high risk individuals) for investigation. Many people failed to declare all their unaccounted income by March 31, 2017.

      15th April 2017

    • Income Tax Collection Target in Mumbai Not Achieved

      In Mumbai zone, the income tax department have not achieved the income tax collection target that it had set for FY17. The target was Rs.2.79 trillion and the department have missed it by a small margin. Last year, the department had collected Rs.2.48 trillion from this zone. At a national level, the department collected direct tax worth Rs.8.47 trillion in 2016-17. Bangalore saw a rise of 21% and New Delhi saw a rise of 5% in tax collections. Chennai and Kolkata zones collection increased by 18% and 15% respectively.

      9th April 2017

    • Increase in tax revenue to the Central Government

      For the Financial Year 2016-17, the Central Government has exceeded the tax collection target. The tax revenue has increased to 18% compared to the last year’s tax revenue amount. One of the reasons for the increase in the tax revenue is the increased service tax and excise. Even demonetization of higher value note has helped the government in reducing tax evasion. The Income Tax (IT) Department has also taken various initiatives to provide an easy e-filing service to the taxpayers. This has resulted in an increase of e-filing as well as the increase the tax revenue to the Central Government.

      5th April 2017

    • Government Meets 91% Of Direct Tax Collection Target

      The government has met 91.26% of the direct tax collection target for the year, as per records dated 26th March, 2017. Tax officials have revealed that they will meet the Rs.8.47 lakh crore direct tax collection target by 31st March, 2017. However, with demonetisation and the low collections arising as a result of reduced sales by small businesses, it remains to be seen if the government can achieve the target set.

      The inflated sales on November 8th and 9th, 2016, by some businessmen courtesy of the sudden announcement of the demonetisation policy are yet to be paid, which could help the government reach its target.

      28th March 2017

    • List of Defaulters who Evaded Taxes Worth Rs.448 Crore Released by IT Department

      Towards the end of last week, the Income Tax Department disclosed a list of 29 entities who evaded Rs.448.02 crore in taxes. The Income Tax Department had earlier decided to implement a strategy where in it would name and shame entities who evaded taxes in large amounts. Although the department has brought to light the defaulters of corporate as well as income tax, it has urged them to ensure that their tax arrears are paid immediately.

      “The entries in the list are specific to the tax arrears and assessment year mentioned. The tax defaulter’s address, business, shareholding and management may have changed,” the notice said.

      22nd March 2017

    • Demonetisation brought down tax collection significantly during Q4 2016

      According to tax department data, economic capital Mumbai was hit the worst during the last quarter of 2016, due to demonetisation of Rs.500 and Rs.1,000 notes.

      Supposedly, advance tax collection for the October - December quarter fell by a massive 10% when compared to the collection during the same quarter of the previous year.

      The tax department had collected over Rs.1.01 trillion over the final quarter of 2015, but collected considerably less last year. Despite the straightforward nature of the fall, officials failed to attribute the loss to PM Modi’s demonetisation move.

      Supposedly, corporate houses pay their taxes through 4 attempts, wherein they pay 15% of their tax liability in the first quarter, 25% over the next two quarters, and the final 35% during the March quarter of the subsequent year.

      21st March 2017

    • IT department asks banks to provide pre-demonetization cash deposit reports

      The income tax department has asked the banks, cooperative banks, and post offices to provide reports of cash deposit that occurred between 1st of April and 9th of November, prior to demonetization of higher value currency. The IT department has also directed banks to seek for PAN card and form 60 from individuals who have opened a bank account or made cash deposits without the documents. Earlier, the IT department had asked banks to report deposits exceeding Rs.50,000 as well. The reports will be used by the IT department to draw a detailed analyses of cash flow and deposits. This will also help in identifying the deposit trends since the demonetization of Rs.500 and Rs.1000 notes.

      16th January 2017

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