Key Changes in Income Tax Return Forms Announced

Key Changes in Income Tax Return Forms Announced: 5 Things You Should Know

In the coming months, the government expects you to give more details about your finances and business with the filing of income tax.

The new forms, issued by the Central Board of Direct Taxes for the 2017-18 fiscal year, you will see several new columns from all categories of taxpayers Sahaja (ITR1), Form ITR-2, Form of the ITR-3 form Sugam -ITR-4, form MFI-5, 6-form MFI, MFI-form 7, and the shape of MFI-V.

Why is the government asks its citizens to provide more information?

According to the report Economic Times, information from the salaried persons benefits not exempt from tax, in summing up the direct and indirect taxes, the amount of any enterprise to engage in any lawful business, the IT department seeks to prevent tax evasion on a few levels.

A) There are more than 25 major changes in the new ITR forms.

B) Some of these changes clearly indicate that the focus of the new ITR form to get more information from unregistered companies, trusts and taxpayers who have opted for the proposed scheme of taxation.

C) ITR forms also require business entities to report GST transactions that would help the department to agree on their own deals, they reported in the income tax return and GST returns.

Here are some of the additional information that you and your business will have to submit a tax collector:

1) should the Company will present Aadhaar number of its members and partners. Trust must also provide Aadhaar numbers related functionaries.

       2) In accordance with the ITS-4, those with businesses must also submit their registration number and GST turnover. To sum up the direct and indirect tax rates, the IT department seeks to check tax evasion. This is probably one of the most important parts.

3)The Company must release the details of the income from the property.

4)The quality of chartered accounts offer you the best way to save on taxes. The government, however, wants to strengthen checks on them and you will now need to submit a registration number of the company’s charter or bill to audit the books of the tax declaration.

5)In the new form of Sahaja specific details relating to wages require disclosure. “He’s looking for a part of the taxpayer salary in some areas, as well as in the collapse of the format, such as benefits that are not exempt, the cost of office facilities, arrived in lieu of wages and deductions claimed in accordance with Article 16. Although the details are provided in the form of 16 employee, they must now be specified in the tax return for the contributions of clarity, “reports Business Standard.

Who has the right to fill out a new form of Sahaja?

According to the Economic Times, those with an income of up to Rs 50,00,000 will find the following sources:

   a) property income such as gross rent received

  b) Receivable value

  c) Tax paid to local authorities

  g) Annual

  e) loan capital interest

e) accrued income under the head house property

In addition, non-resident Indians (NRI) will now file tax returns and provide more detailed information using the form ITR-2 instead of the previously ITR-1. Among other things, the tax collector is looking for information related to a single account in a foreign bank for the purposes of return.

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GST extra as applicable

What does "GST extra as applicable" mean?

GST

In our country, no one knows as for when the rate of any taxes will get changed and/or a new tax/es will get imposed.

Sometimes, to counter the stiff competition, a dealer classify the product being sold under a particular heading taking the benefit of lesser taxes, against the large company classifying the same product under a different head.

Therefore in order to safeguard its interest, the dealer quote the price as rate plus applicable taxes at the time of delivery/invoicing.

When someone quotes his fees or the price of goods, he may use the words, GST extra as may be applicable. This is written in the following cases.

  1. If the rate at the time of quotation is not known to the supplier.
  2. If the supplier is not registered at the time of giving quotation but over a period of time he might have to register. Hence he clarifies that GST will be over and above the rate that he has quoted.
  3. Supplier thinks that GST rates may change between giving a quotation and making the supply. The supplier does not want to take the risk of change in the rate as this is the tax which he collects on behalf of the Govt. and deposits with the Govt.

Thus, such clause safeguards the interest of the supplier and also there are clarity and transparency in the transaction.

Read More: GST Audit Limit Guide for Taxpayers with Turnover Above 2 Crores

For example:

  • If the base price of a product is ₹1,000 and the applicable GST rate is 18%, the final amount payable will be ₹1,000 + ₹180 (GST) = ₹1,180.

This phrase is commonly used in invoices, quotations, or pricing statements to clarify that the GST component is not part of the listed price and will be charged additionally.

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Tax Audit Report and Form 3CA, 3CB & 3CD

Tax Audit Report based on Section 44AB:

The tax audit as specified under section 44AB must be carried out by a Chartered Accountant who holds a full time Practice Certificate. Tax Audit ensures the correctness of the Account Book managed by taxpayers and income is calculated in accordance with the provisions of the Income Tax Act. The tax audit report is completed in Form no. 3CA / 3CB & Form no. 3CD.

When is Form No. 3CA equipped?

Tax audit report in Form no. 3CA must be completed when the party assessed is required to get its account audited under any law other than the Income Tax law. Form no. 3CA is given by a Chartered Accountant after the completion of the Audit. This form must be submitted along with Form no. 3CD.

Details to complete in Form no. 3CA: –

1. Details of assessed items such as Name, Address, PAN etc.,

2. Date of Audit Report,

3. Attachments (Audited Balance Sheet, Profit and Loss Account, Form 3CD),

4. Statement by the auditor that all details are filled in Form no. 3CA and annexure are installed according to their knowledge,

5. Audit of observations and qualifications found in the form of 3CD,

6. Auditor Name, Address, Membership Number, FRN No. And a signature with a stamp / stamp.

When is Form No. 3CB Equipped?

Audit report in Form no. 3CB is required to be completed if the appraisal book does not need to be audited based on other laws (ie laws other than the income tax law).

Details to be completed in 3CD form: –

1. Details of appraiser namely Name, address, PAN;

2. Date of audit report;

3. Attachments (Balance Sheet, Profit and Loss Account, Form 3CD)

4. Statement by the auditor that they have obtained all the information needed for the Audit;

5. Reporting detailed observations, non-conformities mentioned in the form of 3CD;

6. A statement that the account is stored at the branch office and head office;

7. A statement that the details filled in by the auditor are in accordance with their knowledge;

8. Auditor Name, Address, Membership No, FRN No. And a signature with a stamp / stamp

What is Form No. 3CD?

Form No. 3CD is a format in which special statements from tax audits must be completed. This form has a total of 44 clauses in which the auditor must report various matters contained in it.

Form No. 3CD is divided into two parts, Part A and Part B, where;

A. Part A includes basic factual details about the person and

B. Part B requires information on various types of compliance under the provisions of the Income Tax Act.

What is the due date to provide a Tax Audit Report?

The due date for filing the Tax Audit Report based on section 44AB is September 30 of the relevant Year of the previous Year. However, if the appraiser is asked to submit a report relating to certain domestic or domestic transactions based on section 92E, then the due date for filing a Tax Audit Report is 30 November from the relevant Year of Assessment.

Non-filing tax audit reports attract criminal consequences where the penalty imposed is 0.5% of gross turnover / revenue or Rs. 1.5 Lakh, whichever is lower. However, punishment will not be imposed if the failure is caused by a reasonable reason.

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