Income Tax Services
- Filling of Income Tax Return
Every company, Firm and other assessee whose gross total income in previous year exceeding maximum amount which is not chargeable to income tax are required to file income Tax Return under section 139 of Income Tax Act, 1961. Persons also need to file Income Tax Return to Claim Refund which has been paid already by assessee in form of TDS and Advance Tax. Apart from this persons also file Income Tax Return voluntarily to avail loans from bank as it is considered as income proof.
In Budget, 2018 Finance Minister Arun Jaitly made very strict changes in Provisions for penalty on Non- filing of Income Tax Return. Now, Penalty of maximum Rs. 5,000 will be levied if the return is filed after due date but before 31st December of that year and Penalty of maximum Rs. 10,000 if return is filled after 31st March. However, in case of small taxpayers whose total income is not more than 5 lac, maximum penalty of Rs. 1,000 will be levied. Apart from changes in penalty for non-filing of income tax return time limit for filing revised return also has been reduced now it has to filed file within one year from end of respective financial earlier it was two years.
- Managing Income Tax assessment
There are 4 types of Assessment under Income Tax Act, 1961
- Self Assessment u/s 140A-assessment is made by assessee himself to pay income tax.
- Summary/preliminary Assessment u/s 143(1)-this assessment is conducted by income tax department on the basis of return filed by the assessee.
- Regular Assessment
- Scrutiny assessment u/s 143(3) – in this assessment AO randomly select assessees whose scrutiny assessment to be done.
- Best Judgement assessment u/s 144 – this assessment is done by AO when assessee doesn’t co-operate or fails to provide relevant information required by the income tax authority.
- Income escaping assessment u/s 147- income escaping assessment is done by AO when he reason to believe that any income chargeable to tax has escaped assessment for any assessment year.
- Filling of TDS return including TDS payment
Section 194 of Income Tax Act, 1961 specified certain services and events in which Payer has to deduct specified rate of TDS before making payment. To deduct TDS payer should have TAN (tax deduction and collection account) and payee shall provide his PAN to payer. In case payee doesn’t provide his PAN then TDS rate would be 20%. However there are certain events where TAN is not mandatory like TDS on sale of immovable property u/s 194 IB where sale consideration is more than 50 lac and TDS on rent u/s 194 IB where rent is exceeding 50,000 per month. Following are the services and events in which TDS has to be deducted:-
- Section 192- TDS on income, As per prevailing income slab
- Section 193- 10% on interest earned on security investments, if amount of interest is more than 5,000.
- Section 194- 10% on proceeds from Deemed Dividends, if amount of interest is more than 2,500.
- Section 194A- 10% on interest earned on investment other than securities.
- Section 194B- 30% on prize money from lottery or gaming, if amount is more than 10,000.
- Section 194C- 1% for HUF/Individual and 2% for others on proceeds from any contracts or subcontracts, if amount of contract is more than 30,000 individually or more than 1,00,000 in aggregate in a financial year.
- Section 194D- 10% on income from insurance commissions, if amount of income is more than 15,000.
- Section 194F- 20% of investment in MF or UTI units at the time of payment to investor.
- Section 194H- 10% on earnings from brokerage, if amount of brokerage is more than 15,000.
- Section 194J- 10% on the technical or professional services, if payment is more than 30,000 in a financial year.
- Filling of Reply of Income Tax notice
There are seven types of notices in Income Tax Act, 1961
1. Notice u/s 143(1) is intimation for ITR processed by income tax department to taxpayer about arithmetical mistakes and changes to be done.
2. Notice u/s 139(9) if income tax department finds any discrepancies or mistakes or any missing information in ITR then department issue notice u/s 139 (9) to correct defect within 15 days otherwise it would be treated as defective return.
3. Notice u/s 142 (1) this notice is served to call for further details and documents from the assessee. This notice can also be sent to assessee to file his return where he has not filed it.
4. Notice u/s 143 (2) is Scrutiny Assessment Notice.
5. Notice u/s 156 is Demand Notice issued by the Income Tax Department when any tax, interest, penalty, fine or any other sum is payableof any order passed which also specifies amount payable.
6. Notice u/s 148 this notice is issued to re-open a case that has been assessed already by an officer.
7. Notice u/s 245 Notice is issued by income tax department to assessee for intimation of set-ff of refund with outstanding demand.