General

  • Tax assessment of income tax returns is made faceless due to e-Assessment in income tax.
  • Income tax rate is reduced to 25% from 30% in respect of the companies, having turnover up to Rs. 250 crores .
  • Auto filled tax return forms can be downloaded in respect of Tax Deducted at Sources (TDS), Tax Collected at Source (TCS) and details of income tax paid etc.

LONG TERM CAPITAL GAIN

Major changes are made in respect of Long Term Capital Gains relating to equity shares and equity oriented units. Up to financial year 2017-18, the long term capital gain was exempt in respect of equity shares and equity units subject to security transaction tax (STT) but with effect from 01.04.18, the long term capital gain tax relating to equities and equity related units, will be taxed. These changes are described as under:-

  1. Long term capital gain will be exempted up to Rupees one lakh.
  2. Any long term capital gain exceeding Rs. one lakh will be taxed @ 10%, with out indexation.
  3. The cost of of acquisition for the long term capital asset acquired on or before 31st January’2018 will be the actual cost.
  4. However, if the actual cost is less than the fair market value of such asset as on 31.01.2018, the fair market value will be deemed to be the cost of acquisition.
  5. Further, if the full value of consideration on transfer is less than the fair market value, then such full value of consideration or the actual cost, which ever is higher, will be deemed to be the cost of acquisition.
  6. In case of listed equity shares or units, the fair market value means the highest price of such share or unit quoted on a recognized stock exchange on 31.01.2018.
  7. However, of there is no trading on 31.01.2018, the fair market value will be the highest price quoted on a date immediately preceding 31.01.2018, on which it has been traded.
  8. In the case of unlisted unit, the net asset value of such unit on 31.01.2018 will be the fair market value.
  9. The holding period will be counted from the date of acquisition.
  10. There will be no tax on gains accrued  up to 31.01.2018.

NEW INCOME TAX RETURN FORM 

New form No. ITR-2 is is released by Central Board of Direct Taxes (CBDT) for individuals and HUF who are having the income from any source other than income from business or profession. This form can be used by NRI also.

15 DAYS PROGRAMME TO SETTLE DISPUTES

The income tax department will hold grievance redressal programme to settle the relating to rectification of adjustments made in tax demand from 01.06.2018 to 15.06.2018.

STATEMENT OF FINANCIAL TRANSACTIONS

The statement of financial transactions is to be submitted with income tax department on line by banks, post master general, co-operative banks,  issuer of bonds, debentures or shares, trustee of mutual fund, foreign exchange dealer. Nidhi and suppliers of goods or services up to 31.05.2018 for transactions relating to financial year 2017-18. Following are the transactions against which the statement is submitted:-

  • Payment made one lakh or more against credit card bill by any mode.
  • Amount received more than 2 lakhs in cash by any person against goods or services.
  • Cash deposits or withdrawals in current account 50 lakhs or more.
  • Purchase or sale of immovable property for Rs.30 lakhs or more.
  • Transactions more than Rs.10 lakhs in respect of
    1. Payment in cash for purchasing bank draft, pay order etc.
    2. Cash deposit in saving bank account.
    3. Fix deposit made
    4. Payment against credit card bill by any mode other than cash
    5. receipts of sale of foreign currency.

If any delay is made in filing of statement of financial transaction will attract a penalty of Rs.1000/= per day.

FILING OF INCOME TAX  RETURN

Last date of filing of income tax return for financial year 2017-18 (assessment year 2018-19) is 31.07.18 for the persons who are not covered under tax audit or statutory audit.

Please note that if the person who is supposed to file his/her income tax return up to 31.07.2018, does not file the return on or before 31.07.2018, will haveto pay the penalty up to Rs.5000/=.

TAX AUDIT REPORT

Now, the non-salaried  persons who are covered under tax audit have supply more details. The Central Board of Direct Taxes has issued a new form 3CD which is supposed to be filled by Auditors. For example:-

  • GST Registration number of tax payer,
  • details of transactions covered by GAAR (general anti-avoidance rules).,
  • classification of all payment made to GST registered suppliers or exempted from GST,
  • details of transactions covered under TDS but not reported in periodical TDS statement,
  • various details relating to transactions covered by transfer pricing provisions.

FILING OF INCOME TAX RETURNS

Income tax return filing date is extended till 31.08.2018 for the persons who were supposed to file their income tax returns by 31.07.2018.

Income tax return filing date for financial year 2017-18,  has been extended to 15.10.2018 in respect of the persons whose accounts are supposed to be audited by Chartered Accountant.

Now, Income tax return filing date for financial year 2017-18,  has been extended to 31.10.2018 in respect of the persons whose accounts are supposed to be audited by Chartered Accountant.

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