Income Tax Return Filing

AY 2018-19 Income Tax Return Filing | Which ITR Form should you file?

The Central Board of Direct Taxes has notified the new RTI forms for the AY 2018-19 Income Tax Return (for the 2017-18 fiscal year). To facilitate the filing of inquiries, some sections of the forms have been streamlined.

The new form of ITR in PDF format is made available, while Excel (or) Java Utilities for IS 2018-19 will be available soon on the income tax India e-filing website.

What is Assessment Year (AY) & Financial Year (FY)?

The fiscal year (FY) is the year you earned the income. If you file a return this year, the fiscal year will be 2017-18. For example, if you had an income between April 1, 2017, and March 31, 2018, then 2017-18 will be designated by AF. The assessment year (YY) is the year in which you file returns, that is, 2018-19. The last filing date for the 2017-2018 fiscal year is July 31, 2018 (as of now).

Income Tax Slab Rates for FY 2017-18

The income tax slabs & rates are categorized as below:

  • An individual resident under the age of 60 Years.
  • Senior Citizen (an Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year).
  • Super Senior Citizen (an Individual resident aged 80 years or more at any time in the past year).

Income Tax Return Filing

New ITR 1 (Sahaj) Form For Year Analysis 2018-19

Direct Tax Central Board (CBDT) has filed a Form of Tax Return Form (Form ITR) for Assessment Year 2018-19. For the Year of Assessment 2017-18, a single page simplified by ITR Form-1 (Sahaj) was notified. This initiative benefits from the 3 crore taxpayers, who have submitted back to their respective Forms. For the Year of Assessment 2018-19 also, one page simplified ITR Form-1 (Sahaj) has been notified.

  • This form can be used if you have;
    • Salary or Pension Income
    • Income from a home owner’s property (excluding cases where loss has been lost from previous years)
    • No business income / no Capital gains
    • No asset in a foreign country or no income from a source outside India
    • Agricultural  income which is less than Rs 5,000
    • Income from other sources like FD/Shares/NSC etc.,
    • No income from lottery or horse racing.TR Form-1 (Sahaj) may be filed by an individual resident other than an unusual resident, earning up to Rs 50 lakh and receiving income from salary, home property / other income (interest etc.).
  • Additionally, home-related salary and property components have been rationalized and provide basic salary details (such as those available in Form 16) and income from home property has been reimbursed command.

  • Click here to download a new ITR 1 Form for IS 2018-19.
  • Please note that NRIs can not file form ITR-1 from IS 2018-19 until the beginning.

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Accounts and Audit Requirements

Books of Accounts and Audit Requirements

The Income Tax Law sets out the books of accounts to be kept for income tax purposes. It has been described under Article 44AA and Rule 6F.

Required to keep the books of accounts?

The following professions must maintain accounting records if their total revenue is greater than Rs. 150,000 in the previous 3 years for a career list. This also applies to a newly established profession whose total revenue is expected to exceed Rs 10,000. 1,50,000.

Books Accounts

The accounting records to be booked in Rule 6F were identified:

  • legal
  • Medical
  • Engineering
  • The architect
  • Accounting
  • Technical Consultancy
  • Interior decoration

Authorized representative – a person who represents a person for remuneration before a body or other authority under the law. It does not include an employee of the person represented or the person who performs the accounting profession.
A filmmaker – includes a producer, an editor, a representative, a director, a music director, a technical director, a director, a photographer, a singer, a songwriter, a storyteller, a screenwriter, And fashion designers.
Secretary Company

If you are a freelance entrepreneur pursuing any of these professions, your total receipts are more than Rs. 150000, these rules apply to you.

If the total income of the above professions does not exceed Rs.150,000 in one or more of the previous three years of an existing occupation or a newly established occupation whose total revenue is expected to be less than Rs 1, 50,000 – the professional must keep books of accounts. Unless all books or records are not kept, they are not exactly selected. The only requirement is that AO is able to calculate taxable income from professional ones.

From 18-18 years, the maximum rupee. 150,000 to Rs. 250000.

  • Accounting books defined by Rule 6F
    Cash book
    Record cash and cash payments daily that show the cash balance at the end of the day or at best at the end of each month and not thereafter.
  • Magazine in accordance with the Commercial Accounting System
    The newspaper is a record of all daily transactions. It is a record, in terms of accounting, where the total credits equal the total debt, when we follow the double-entry accounting system, that is, each opponent has a balance against and vice versa.
  • The ledger in which all entries from the magazine flow contains details of all accounts, and this can be used to prepare financial statements.
  • A copy of the invoices or receipts issued by them which are more than 25 rupees
    Bills of original expenses incurred which are more than 50 rupees
  • The following are additional requirements in the case of a person with a medical profession – doctors, surgeons, dentists, pathologists, radiologists, etc.

Record daily cash with patient details, services provided, fees received and date of receipt
Details of stock of medicines, medicines and other consumables used
These books must be kept at the head office or in each office.

How long should these books be preserved?

Records must be kept each year for 6 years from the end of this year.

Not keeping the books of accounts?

If you fail to maintain account records as stated, you may be fined 25,000 rupees or in some cases where you may have international transactions and failed to retain the information and documentation for such transactions – 2% of the value of each international transaction.

It will be hard to keep your books and track all your expenses and income in a systematic way.

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Sector Trends for Long Term Investment @ India

Kya Lagta hai Market

“Kya Lagta hai Market”, Probably the most asked Question in the Indian Stock Market, but does it even matter? Most Fund Manager/Investors Spend 90% of their time thinking the next 5% Index Move while big wealth is Created CATCHING LONG TERM TRENDS.

Sector Trends for Long Term Investment

It has taken 70 years for India to Reach 2.5 Trillion Dollar Economy, though India will take only 7-8 more years to reach 5 Trillion i.e. the Total amount of Money that was made in Last 70 years would be made again in the next 7-8 Years.

The Question is how much will you make?

The Question is how much will you make? I have absolutely no doubt that the ones who can catch a few right trends in next 7-8 years are going to be very very rich. China took 5 years to double, the US took 10 years to double from 2.4 to 5 trillion$, it is estimated that India will take 7 years to get there.

The Idea is simple, there will be 100’s of entrepreneurs out there who will increase their profit 10-15x from current levels, they will grow at 30-40% and we need to back them. The Biggest Trend in India.

Within India, there will be Sector Trends that will change every 3-4 years like:
Automobiles – India Sold a whopping 2 Crore Two Wheelers India V/S 1.7 Crore Two Wheelers sold by China. Interestingly India Sold 33 Lakh Passenger Cars in FY2018 V/S 2.4 Crore in India. Slowly but Surely in the next 10 years, we are confident that India will sell 1 Crore+ Cars and the average ticket size of a car would also Increase rapidly. Out of these 33 Lakh Cars, more than 50% i.e. 18 Lakh Cars were sold by Maruti alone. Maruti has a Market cap of 2.6 Lakh Crores and did Profit of about 8000 Crores in FY2018.

ca, auditors, gst, income tax

Financials – This is one space where the Opportunity is Largest into all Three Spaces i.e. Lending, Protection and Wealth Management.

Lending – The Top 45 Business houses in India are 50% of Nation’s banking debt even after the nationalization of banks. The Top 20% of India is well banked and Opportunities are now on the lower ticket size retail lending (80% of Population). With Upsurge of MFI, SME Lending, consumer finance, affordable home loans, Retail Credit is a big trend which is typically small ticket size loans with higher NIM spreads. India’s Credit needs will grow at 15-16%, whereas Smart private Bankers/NBFC can grow faster at 20-30% easy for next 7-8 years. There is an Opportunity to grow lookbook by 3-5x easily.
Protection – This Again is a multiyear theme, from Life to Auto insurance to Health to crop to even your cell phone. Here not only there will be Growth of 15-17% in the general Market but there will be large Market share shift from PSU Insurers to Private companies, we believe Private Insurers can grow 20%+ for a long long time.

Wealth Management & Investment– We Strongly believe that Markets are underestimating the financialization of savings as a theme, the total Profit pool of top 5 Asset management companies (57% Market Share) in India is just 1800 Crores in FY2017. The Profit Pool is so small that one midsized popular hedge fund Pershing Square made more Profit than the Entire Indian Asset Management Industry, We at Stallion Asset have absolutely no doubt that the Profit Pool will grow multifold in next 5-10 years and there will be massive wealth Created in this space.

Air Conditioners – I hope the Indian summer is not killing you because you are in A/C room right now reading this blog but you will be surprised to know that only 4% of Indian Households own an Air Conditioner, (10% Indian own Air-Cooler) whereas 85% of Indian Household have fans.

In China, the Penetration of Air conditioners grew from 8% in 1995 to 70% in 2004. Voltas is the Market Leader with 24% Market share in A/C in India and Sold 10 Lakh Air conditioners this year and will do a Profit of 650 Crores in FY2018 and has a 20,000 Crores Market Cap. 10 years from today, I don’t know what profits Voltas will make but I am confident that India’s Penetration of Air Conditioners will go up from 4% to at least 15%.

Large Format Retail Stores- There are 3700 Tesco Stores in the UK, 4100 Walmart Stores in the USA where in India, D-Mart has 155 Stores and Big Bazaar 260. Remember The population of UK is 6 Crores, the Population of USA is 32 Crores and Population of India is 125 Crores.

Conclusion – I repeat “MORE MONEY WILL BE CREATED IN THE NEXT 7-8 YEARS THAN INDIANS CREATED IN LAST 70 YEARS” There are opportunities to make it large. There will be cyclical ups and downs but smart stock pickers would easily make 10x in next 10 years. Don’t Miss this BIGGEST TREND EVER by trading nifty for 100 points, options, Futures etc.

A Blog by Amit Jeswani of stallionasset.com

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