10 Income Tax Rules That Will Change From April 1

? Rs 40,000 standard deduction introduced: This additional deduction has been proposed in place of existing deductions of Rs. 19,200 for transport allowance and Rs. 15,000 for medical reimbursement.

This will benefit 2.5 crore salaried employees. Pensioners, who normally do not enjoy any allowance for transport and medical expenses, will also benefit from it.

After the introduction of standard deduction, the salaried class will enjoy a flat deduction of Rs 40,000 from their taxable income. Standard deduction was earlier available for salaried individuals previously, till it was abolished with effect from assessment year 2006-07.  The benefits arising from standard deduction depends on the tax bracket a salaried individual falls in.

? Higher cess: The finance minister also raised cess on income tax to 4 per cent from 3 per cent for individual taxpayers on the amount of income tax payable.

? Introduction of long-term capital gains tax on equity investments:  A new 10 per cent tax (cess extra) will be applicable on capital gains exceeding Rs 1,00,000 upon sale of equity share or units of equity oriented funds. However, for the benefit of tax payers, the gains till January 31, 2018, are being grandfathered. This means that only gains over January 31, 2018, prices will be taxed.

? Tax on dividend income from equity mutual funds:  A tax at the rate of 10 per cent will be levied on dividend distributed by equity-oriented mutual funds.

? More income tax benefits on single premium health insurance policies: Health insurers typically provide some discount if you pay premium for a few years upfront. But earlier, an individual could claim deduction only up to Rs. 25,000.

Under the proposed changes in Budget 2018, in case of single premium health insurance policies having cover of more than one year, deduction will be allowed on a proportionate basis for the number of years for which health insurance cover is provided, subject to the specified limit. For example, your insurer is offering a 10 per cent discount on health insurance premium if you pay Rs. 40,000 for the two-year cover. Under the proposed changes, the individual can claim Rs. 20,000 in both years.

? Income tax benefit on NPS withdrawal: The government has proposed an extension to the benefit of tax-free withdrawal from NPS (National Pension System) to non-employee subscribers.

Currently, an employee contributing to the NPS is allowed an exemption in respect of 40 per cent of the total amount payable to him or her on closure of account or on opting out. This exemption is currently not available to non-employee subscribers. The extension of tax-free withdrawal to non-employee subscribers will be available from financial year 2018-19.

EMPOWERING SENIOR CITIZENS

? Deduction in respect of interest income to senior citizens:

Senior citizens will get higher interest income exemption limit on deposits in banks and post offices, including recurring deposits.  Currently, a deduction up to Rs 10,000 is allowed under Section 80TTA of the Income Tax Act to an individual in respect of interest income from a savings account.

Under the tax laws, a new Section 80TTB is proposed to be inserted to allow a deduction up to Rs 50,000 in respect of interest income from deposits held by senior citizens. However, no deduction under Section 80TTA shall be allowed for senior citizens.

The government also proposed to increase the investment limit in Pradhan Mantri Vaya Vandana Yojana or PMVVY to Rs. 15 lakh from Rs. 7.5 lakh. It also proposed to extend the Pradhan Mantri Vaya Vandana (PMVVY) scheme till March 2020. Pradhan Mantri Vaya Vandana Yojana, a scheme meant for senior citizens, offers a guaranteed interest rate of 8 per cent.

? Higher TDS or tax deducted limit for senior citizens: The threshold for deduction of tax at source on interest income for senior citizens is proposed to be hiked from Rs 10,000 to Rs 50,000.

? Higher deduction limit under Section 80D of the Income Tax Act for senior citizens: In Budget 2018, the government proposes to increase the deduction for senior citizens on payment of health insurance premiums. The limit is set to go up from Rs 30,000 Rs 50,000. For individuals below 60 years of age, the deduction under Section 80D continues to be Rs 25,000. But if their parents are senior citizens, above 60 years, they can claim an additional deduction of up to Rs 50,000-taking the total deduction to Rs 75,000 (Rs 25,000 + Rs 50,000), higher than the current limit of Rs 55,000.

? Higher income tax deduction for senior citizens for medical treatment of specified diseases:  The deduction available payment towards medical treatment of specified disease is proposed to be hiked to Rs 1 lakh for very senior citizen (earlier Rs 80,000) and senior citizen (earlier Rs 60,000).

ITR-6 Form

What is the ITR-6 Form?

Organizations other than organizations claiming exemption under section 11 must furnish their income tax must in ITR-6 Form.

What are the organizations claiming exclusions under segment 11?

Organizations guaranteeing exclusion under area 11 are those whose wage from the property is held for altruistic or religious purposes.

Click here to see the most recent ITR-6 shape from the Income Tax Department.

What is the ITR-6 Form

 

 

E-filing audit reports

On the off chance that the assessee is subject to Audit u/s 44AB and the records have been examined by a bookkeeper, the subtle elements of such review report alongside the date of outfitting it to the office must be filled by the head “Audit Information.”

From AY 2013-14, if a citizen is required to outfit a review report under segments 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(vi a), 10A, 12A(1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA, 92E or 115JB, he might document the report electronically prior to the date of recording the arrival of pay.

What is the structure of the ITR-6 Form?

The Form has been isolated into two sections and a few calendars:

  • Section A: General data
  • Part B: Outline of the aggregate pay and expense calculation concerning pay chargeable to impose.

The 33 schedules are:

  • Schedule BA: Details of Bank account
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule-BP: Computation of income under the head “profit and gains from business or profession”
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule- CFL: Statement of losses to be carried forward to future years.
  • Schedule –UD: Details of unabsorbed depreciation
  • Schedule- 10A: Computation of deduction under section 10A
  • Schedule- 10AA: Computation of deduction under section 10AA
  • Schedule- 80G: Details of donation entitled for deduction under section 80G
  • Schedule- 80IA: Computation of deduction under section 80IA
  • Schedule- 80IB: Computation of deduction under section 80IB
  • Schedule- 80IC or 80IE: Computation of deduction under section 80IC or 80 IE
  • Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.
  • Schedule-SI: Statement of income which is chargeable to tax at special rates
  • Schedule-EI: Statement of Income not included in total income (exempt incomes)
  • Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB
  • Schedule-MATC: Computation of tax credit under section 115JAA
  • Schedule-DDT: Details of payment of Dividend Distribution Tax
  • Schedule BBS: Details of tax on distributed income of domestic company on buy back of shares, not listed on stock exchange
  • Schedule-IT: Statement of payment of advance-tax and tax on self-assessment.
  • Schedule-TDS: Statement of tax deducted at source on income other than salary.
  • Schedule-TCS: Statement of tax collected at source
  • Schedule FSI: Details of income accruing or arising outside India
  • Schedule TR: Details of Taxes paid outside India
  • Schedule FA: Details of Foreign Assets

How do I fill out the ITR-6 Form?

 

Directions for rounding out ITR-6

  • In the event that any calendar is not appropriate score crosswise over as “— NA—”.
  • On the off chance that anything is inapplicable, state “NA” against that thing.
  • Express “Nil” to signify nil figures.
  • But as given in the shape, for a negative figure/figure of misfortune, compose “- ” before such figure.
  • All figures ought to be adjusted off to the closest one rupee. Be that as it may, the figures for add up to salary/misfortune and duty payable be at long last adjusted off to the closest different of ten rupees.

Sequence for filling out parts and schedules

The Income Tax Department encourages surveys to take after the succession specified underneath while rounding out the salary government form.

  • Part A
  • Schedules
  • Part B
  • Verification

How would I document my ITR-6 Form?

This salary assessment form must be necessarily outfitted electronically under computerized mark to the Income Tax Department.

No annexures required

No record (counting TDS testament) ought to be connected with this arrival shape while documenting ITR-6. Every single such report encased with this Return Form will be disconnected and come back to the individual recording the arrival. Citizens are encouraged to coordinate the assessments deducted/gathered/paid by or in the interest of them with their Tax Credit Statement Form 26AS.

 

GST Council may finalise e-way rules today

GST Council may finalize e-way rules today

GST arrangement requires products more than Rs 50,000 to be pre-enrolled online before it can be moved

The Council, headed by Finance Minister Arun Jaitley, will likewise audit at its meeting the usage of the GST administration since July 1 and may settle an instrument to operationalise hostile to profiteering arrangement to secure shopper intrigue.

Development of products between states has smoothened with 25 out of 29 states nullifying check posts.

This would additionally smoothen after e-path charge in GST that requires any merchandise more than Rs 50,000 in incentive to be pre-enlisted online before it can be moved is executed.

 

Around 25 states have expelled those check posts. Up until this point, it has been going well.

 

Authorities said rules for the e-way bill will be chosen tomorrow. This GST arrangement requires any merchandise more than Rs 50,000 in incentive to be pre-enlisted online before it can be moved.

GST Network (GSTN)

According to the draft arrangement, GST Network (GSTN) would produce e-way charges that will be legitimate for 1-20 days, contingent upon separation to be voyage – one day for 100 km, 3 days (100 to under 300 km), 5 days (300-under 500 km) and 10 days (500-under 1,000 km).

It would be required for producers to pass on advantages of the decrease in charges present GST on buyers.

Currently, services by way of job work in relation to textile yarns — other than man-made fiber/filament — and textile fabrics attract 5 per cent GST. Other job works in relation to garments attract an 18 per cent levy.

Goverment is  going to finalize the entire mechanism as far as anti-profiteering is concerned.

 

The Council may look at streamlining it and bring all job works, including for making garments from fabric, under the 5 per cent slab. Apart from reviewing the rollout of the GST regime, the 19th meeting of the Council may on Saturday take a look at streamlining the anomalies raised by the industry over the past one month, said an official, who did not want to be named.

 

It will be the first full-fledged meeting of the GST Council, also comprising representatives of all the 29 states, after the rollout of the new indirect tax reform on July 1.

 

The Council had on July 17 discussed, via video conferencing, hiking cess on cigarettes as there was some anomaly in the rate fixed earlier.

 

After the July 1 rollout, the textile sector had protested, demanding a rollback of 5 per cent GST on fabrics.

 

Jaitley, however, had ruled out cutting tax rates for the textiles sector, saying a zero per cent GST on fabrics will break the input tax credit chain for the domestic industry and make imported items cheaper.

 

According to the rates decided by the Council, in the textiles category, silk and jute fiber have been exempted, while cotton and natural fiber and all kinds of yarns will be levied a 5 per cent GST. Man-made fiber and yarn will, however, attract an 18 per cent tax rate.

 

All categories of fabric attract a 5 per cent rate. Man- made apparel up to Rs 1,000 will attract a 5 per cent tax and those above Rs 1,000 will attract 12 per cent.