Income from other sources

1. Heads of income

The Department of Income Tax clears revenue in five revenue heads for the purpose of reporting income tax:

  • Income from salary
  • Income from house ownership
  • Income from capital gains/losses
  • Income from business and profession
  • Income from other sources
  • Revenues from other sources include income that does not fall into any of the other income earners.

Income head

 

2. A savings account – Interest income

Income from other source

  • The interest that will accrue on your savings bank account must be disclosed in your income tax return from other sources. Please note that the bank does not deduct TDS from the interest on the savings house.
  • The interest on the fixed deposit and the repeated deposits is taxed, while the interest on the savings accounts and the postal deposits are to a certain extent tax deductible. But they are shown under income from other sources.
  • Interest income from a savings bank or a fixed deposit or from a post office account is shown under this chapter.

3. Deduction on interest income under Section 80 TTA

For a residential individual (aged 60 or less) or HUF, the interest earned up to 10,000 rubles in a financial year is tax-free. Refusal is permitted on interest income earned by:

  • bank savings account
  • savings account with a cooperative company that performs banking
  • savings account with mail

4. Fixed deposit tax

The interest rate on a fixed deposit you receive is added along with other earnings that you have as a salary or professional income and you will have to pay a tax on that income at the tax rate that applies to you. TDS is deducted from interest income when earned, although it can not be paid.

5. Avoidance of TDS on fixed deposits

  • Banks are obliged to deduct the tax when interest income from deposits held at all branches of the bank being compiled is more than 10,000 rubles in one year.
  • 10% of TDS is deducted if details of PAN are available. That’s 20% if the bank does not have your PAN data.
  • Details of the TDS deductible for fixed-interest deposit are in the form 26AS.
  • If your total income is below the taxable limit, you can avoid tax deducting of fixed deposits by submitting Form 15G and Form 15H to the bank requesting them not to refuse all TDS.
  • Form 15G is for everyone else.
  • These forms are valid only for one year. Therefore, they must be submitted every year to keep the banks from a tax deduction.

6. Notification of immovable deposit and periodic deposits in your tax return

Registration of fixed deposits

          If you have three open FDs, then add all interest income and enter it under ‘Other interest income’.

7. Free income

The amount of PPF and EPF to be deducted at maturity is tax-free and must be declared as income-free income from other sources.

Keep in mind that: EPF is the only tax-exempt after a five-year continuous service.

8. Family pension

If you collect a pension in the name of someone who is deceased, then you must show this income under income from other sources. There is a deduction of Rs 15,000 or one-third of the survivor’s pension received whichever is lower than the income of the family pension fund. This will be added to the taxpayer’s income and the tax must be paid at a tax rate that is applicable.

9. Taxation of lottery winnings, games, puzzles

If you get money from winning a lottery, an online / TV game shows etc., it will be taxed under your head Income from other sources. The income will be taxed at a flat rate of 30%, which after the addition of the tag will amount to 30.9%

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What is Advance Tax?

How to Calculate & Pay Advance Tax?

Advance tax means a tax on income should be paid in advance instead of a lump-sum payment at the end of the year. It is also known as pay as you earn a tax. These payments should be made in instalments according to the deadlines given by the income tax department.

Who should pay Advance Tax?

Advance tax

Sales, freelancers and businesses.- If your tax liability is R 10,000 or more, you must pay a tax beforehand in the financial year. With an advanced tax applied to advanced taxes, wages, freelancers and companies. Older people, over 60 years of age or older, do not have to pay taxes beforehand.

Suspected businesses – When taxpayers choose a predefined scheme, business income is ? 2% less than 2% of turnover, except for FY2017-18 tax exemption.

The alleged income of companies for FY 2016-17 – The taxpayers who opt for the budget project must pay the full amount of their initial taxes on or before March 15. If they have to pay their fiscal payments on March 31, it’s okay. Start FY 2016-17. Companies with a turnover of Rs 2 crores or less can choose this scheme.

Presumptive income for Professionals for FY 2016-17–this scheme includes doctors, lawyers, architects, etc. They are aimed at professionals like it. If they receive 50 lakhs or less (article 44AD). The taxpayers must pay a three-monthly fee.

Due Dates for payment of Advance Tax

FY 2017-18 & FY 2016-17 For both individual and corporate taxpayers

 

Due Date Advance Tax Payable
On or before 15tpayable on 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

For taxpayers who have opted for the Tax Provision Scheme – Business Income

Due Date Advance Tax Payable
by 31st March 100% of advance tax

Taxpayers choose to set a tax on the taxable property, taxation or leasing business

Due Date Advance Tax Payable
On or before 15tpayable on 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

  For FY 2014-15 and FY 2015-16  

Due Date For corporate taxpayers For individual taxpayers
On or before 15th June 15% of advance tax –
On or before 15th September 45% of advance tax 30% of advance tax
On or before 15th December 75% of advance tax 60% of advance tax
On or before 15th March 100% of advance tax 100% of advance tax

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28th GST Council Meeting – Announced..!!!

1. Highlights of this GST Council meeting

      A) GST Return Filing process further simplified
  • Regular taxpayers with a turnover up to Rs 5 crore can choose to file GST return on a quarterly basis against the previous boundaries of Rs. 1.5 crore. These taxpayers must, however, pay taxes on a monthly basis through Challan.
  • Regular taxpayers with a turnover of more than Rs. 5 crores, must file a monthly return filing RETURNS new proposed Shri Nandan Nilekani system was adopted.
  • Amendments made by submitting the return referred to amendments of return and payment, if any, will be in itself a return to help keep interest liability for taxpayers.
  • It is proposed, NIL return filers (no buying and selling there) must be provided in the return of the object file to send SMS.

B) SOps for composite dealers get the nod

  • Composition dealers can now covered the supply of services: the boundary equal to or less than 10% of turnover, or rendered RS lakhs 5, depending on the above services, fixed to choose circuit *. Restaurant services are not considered to include these criteria.
  • All council members voted unanimously, by virtue of the increased threshold limit of Rs. 1.5 crore from the existing Rs 1.0 lakh as soon as possible.

C)  At registration GST

  • Taxpayers may opt for multiple registrations within the territory of the State / Union with respect to several businesses located within the same State / Union. It has previously been limited by several companies in certain countries.
  • e-commerce operators should have compulsory registration of GST only on the Non-Exempt goods.
  • The threshold for the release of GST is increased to 20 from 10 lakhs 6 States -Taxpayers, working in Sikkim Arunachal Pradesh, Himachal Pradesh, Uttarakhand, Assam and Meghalaya.

D) The reverse charge mechanism is postponed for a year before September 30, 2019

  • Committee to study the pros and cons of the system, as well as a probable impact on income.
  • At the same time, the amendment proposed Levy GST on the reverse charge mechanism only on these goods in the case of certain classes of registered persons declared receiving shipments from unregistered suppliers.

E) Creating GST Appeal Tribunal

  • National Bench will be established in New Delhi.
  • 3 State / Regional Bench come to Mumbai, Chennai and Kolkata with a few benches district.
  • Amount preliminary deposit paid for appeal to appeal body and Appeal Tribunal be limited to the RTS. 25 crore and Rs. 50 crore, respectively.

28th session of the GST Council focused on: Simplify the business and tax compliance targeting / providing assistance to small-scale taxpayers through quarterly filing appeal and speed reduction on raw materials / inputs. About 93% in favor of the taxpayer by quarterly supply. middle class citizens, who will benefit from reduced rates on consumer-related products.

2. Recent Rate Changes on Goods

GOODS
S.NO Items New Rate Old rate
1 Rakhi (other than that of precious or semi-precious material )
Nil
 18%
2 Sanitary Napkins 12%
3 Circulation and commemorative coins 5%
4 A raw material for broom 12%
5 Stone/Marble/Wood Deities 5%
6 Sal leaves and its products 18%
7 Khali donate 18%
8 Coir pith Compost 5%
9 Chenille fabrics and other fabrics under 5801
5%
12%
10 Handloom dari
11 Phosphoric Acid (fertilizer grade only)
12 Handmade Carpets, Textile Floor, Coverings
13 Knitted cap/topi having retails sale value exceeding Rs. 1000
14 Kota Stones and Similar Stones (other than polished)
18%
15 Ethanol for sale to oil marketing companies for blending with fuel
16 Solid Biofuel pellets
17 Marine Engine 28%
18 Bamboo Flooring
12%
18%
19 Hand Operated Rubber Roller
20 Brass Kerosene Pressure Stove
21 Zip and Slide Fastener
22 Handicrafts (Excluding handmade)
23 Handbags including pouches and purses; jewellery box
24 Fuel Cell vehicle 28%
25 Televisions up to 68 cm
18%
28%
26 Glaziers’ putty, grafting putty, resin cement
27 Refrigerators, freezers, water cooler, milk coolers, ice cream freezer
28 Washing Machines
29 Food Grinders & mixer
30 Vacuum Cleaners
31 Paints and Varnishes (including enamels and lacquers)
32 Shaver’s, Hair Clippers
33 Hair Cleaners
34 Storage water heaters
35 Immersion heaters
36 Hair Dryers, Hand Dryers
37 Electric Smoothing irons
38 Scent Sprays
39 Toilet Sprays
40 Pads for application of cosmetics or toilet preparations
41 Lithium-ion batteries
42 Powder Puffs
43 Special purpose motor vehicles
44 Work Trucks (Self-propelled, not fitted with lifting or handling equipment)
45 Trailers & Semitrailers
List of Goods Exempt
Fortified Milk exempt 5%

3. Recent Rate Changes on Services

SERVICES
Rate Change
Services New Rates Old Rates
Supply of e-books 5% 18%
Supply of Multimodal Transportation 12% Nil
List of Services Exempt
Senior Citizens
1. Sevices provided by Coal Mines provident fund organisation to the PF subscribers
2. Services provided by Old age home run by state government / central government to the citizens aged more than 60 years up to Rs. 25000
3. GST exempted on the administrative fee collected by National Pension System Trust
4. Services provided by an unincorporated body or non-profit entity registered under any law to own members up to Rs. 1000 per year of membership fees.
Agriculture/ Farmers
1. Services by way of artificial insemination of livestock (other than horses)
2. Services provided by FSSAI to food businesses.
3. Services provided by way of warehousing minor forest produce
4. Services provided by the installation and commissioning by DISCOMS for extending electricity distribution network for agricultural use.
Banking/Finance/ Insurance
1. Reinsurance services provided to insurance scheme such as Pradhan Mantri Rashtriya Swasthya Suraksha Mission
Government
1. Guarantees are given by central/state government to their undertakings/PSUs.
2. Services provided by a government to ERCC by assigning the right to collect royalty to mining lease holders.
Miscellaneous
1. Import of services by Foreign diplomatic missions/UN other international organizations
2. GST rate slabs will apply on the actual rate for hotel services instead of declared tariff.

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