|1||1st July||GST Regime Starts|
|2||15th July onwards||Uploading of Sales / Outward Invoices|
|3||20th August||Pay tax and Upload GSTR-3B for July (Self declaration form)|
|4||1st to 5th September||File GSTR-1 for the month of July|
|5||6th to 10th September||Download and Reconcile GSTR-2 for the month of July (auto populated from GSTR-1)|
|6||16th to 20th September||File GSTR-1 for the month of August|
|7||20th September||Pay tax and Upload GSTR-3B for July (Self declaration form)|
|8||21st to 25th September||Download and Reconcile GSTR-2 for the month of August (auto populated from GSTR-1)|
|9||10th October||File GSTR-1 for the month of September|
|10||15th October||File GSTR-2 for the month of September|
|11||20th October||File GSTR-3 for the month of September|
|12||–||Cycle 9 to 11 continues.|
From June 1, 2017, all individuals who pay rent of more than Rs 50,000 per month will have to deduct tax at source at the rate of 5% as per an amendment to the Income Tax Act.
You are responsible to deduct this tax in the last month of the financial year, or the last month of your rental agreement if you plan to vacate the house during the year. We recommend you deduct this tax along with the payment of your rent.
If you house owner does not have a PAN number then you have to deduct tax at a higher rate of 20%.
The tax deducted is to be paid within 30 days from the last day of the month in which the deduction was made. You can remit it to the bank, file form 26QC and submit a copy of the form 16C to your house owner. Remember form 16C to the house owner is to be issued within 15 days of filing form 26QC.
If you do not comply with the TDS deduction rules it will attract penalty @1% per month. If the tax is deducted but not paid it will attract penalty @ 1.5% per month. If the required statements are not filed it will attract a penalty of Rs 200 per day for the period of delay.
Example – If you pay rent of Rs 90,000 per month for the period June 1 2017 to 31 March 2018 the total rental amount is Rs 9 lakh. The TDS @ 5% will be Rs 45,000. You are responsible to deduct this amount from your March 2018 rental payment and pay the balance amount to your house owner.
According to the model GST Law, a taxable person can accumulate credits of taxes paid and carry them forward in a return. With the introduction of the GST, the last set of credits will have to be transferred. To do this, you must satisfy the conditions mentioned below to take credit for the opening stock.
Let’s take AB Pvt Ltd as an example. Their VAT Form 100 shows credit/excess amount carried forward (as on 30th June, 2017) to be Rs 5,000. This implies that AB Pvt Ltd’s input VAT credit balance stands at Rs 5,000.
Now, can this be carried forward? The answer is yes, if AB Pvt Ltd fulfils some conditions. First that input VAT of Rs 5,000 must be shown in the returns and secondly GST approves of the same as input tax credit. If the above are satisfied, the input VAT will be carried forward as SGST credit.
Let’s try and explain this with the help of an example. Let’s consider a company as ABC Pvt Ltd. Now, ABC Pvt Ltd is a two-wheeler manufacturer located in Bangalore and registered under the excise and Karnataka VAT. Now, say as of June 30, 2017, ABC has a CENVAT closing balance of Rs 25,000. The question here is if this balance credit can be carried forward? Yes, it can be. This will be allowed if ABC satisfies two aspects. One that its returns filed under ER-1 reflect the CENVAT balance. Secondly, the same is allowed as input tax credit in GST. For ABC, this CENVAT will be carried forward as CGST credit.
FEES FOR LATE FILING OF RETURNS
Earlier, we were allowed up to two years from the end of a particular year to file returns for that year’s income. If you did not file returns even after the expiry of two years, the tax officer could, at his discretion, levy a penalty of ₹5,000.
RULES FOR FINANCIAL YEAR 2016-2017
The maximum time that tax laws now provide to file returns for a particular year’s income is only until the end of the following year (called the assessment year). Say, July 31, 2017, is the last date for filing your returns for the income earned in the year 2016-17. If you miss this deadline, you are allowed to file your return only until March 31, 2018 (2017-18 being the assessment year for 2016-17). As is the usual case, a late return will mean an interest payment of 1 percent for each month/part of a month of delay on any tax payable. Besides, if advance tax provisions are applicable to you, and you haven’t followed the rules for payment here, interest is charged on this front too.
RULES FOR FINANCIAL YEAR 2017-2018
This year’s Budget adds another disincentive for late filing. Accordingly, aside of the above-mentioned interest, from the assessment year 2018-19 onwards, a late fee will be charged for returns not filed within the due date specified (probably July 31, 2018, for incomes earned during 2017-18). If the return is submitted after the due date but before December 31 of the assessment year, a flat late fee of ₹5,000 will be payable. This implies that even a day’s delay can cost you ₹5,000! A delay beyond December 31 doubles the late fee to ₹10,000. The only concession is that, if your total income does not exceed ₹5 lakh, you will be charged a maximum late fee of only ₹1,000.
REDUCTION IN TIME FOR REVISING RETURN
Last year’s Budget handed out a carrot to taxpayers, enabling them to revise returns even if they filed it after the due date. Accordingly, from the assessment year 2017-18 onwards ( i.e. for income earned during 2016-17), persons filing their returns within the due date ( say, July 31, 2017, in this case) as well as those who filed after the due date, but before the end of the assessment year (i.e. before March 31, 2018, in this case), can revise their returns. This revision could be done at any time before the eAudit firms in Chennai expiry of one year from the end of the relevant assessment year or before the completion of the assessment.
Budget 2017 curbs this time limit for revising returns by half. So, while you can revise your return even if you file it after the due date, the time limit for the revision itself has been brought down to only until the end of the assessment year. Hence, returns for the year ended March 2018, although due probably by July 31, 2018, can be filed until March 31, 2019. Under the earlier law, a revision would have been allowed till March 31, 2020. But after Budget 2017 changes, the returns can also be revised only until March 31, 2019.
NO WITHHOLDING OF REFUND
Taxpayers whose returns have been selected for scrutiny are routinely stressed, not only because of questioning by the assessing officers but also because of non-processing of their returns. In effect, there are long delays in issuing what may be, in the end, a genuine refund. Budget 2017 has moved towards putting an end to this heartburn. So, beginning with the assessment year 2017-18, returns can be processed and refunds issued even in such cases where the officers have taken them up for a detailed study, randomly or otherwise. In other words, refunds will not be withheld simply because the return has been taken up for scrutiny. Only in doubtful/exceptional cases where the assessing officer is of the opinion that granting refund will adversely affect revenue, can he withhold the refund until the assessment is made.
Deposits up to Rs. 2,50,000 have not been given any blanket tax-free status. Only such deposits will not be reported to the Income-tax Department by banks/post offices.
The Law At Present:
The following clarifications in government Press Release dated 10-11-2016 may be noted:
Q.1 A lot of small businessmen, housewives, artisans, workers may have some cash lying as their savings at home, will the Income-tax Department ask questions if the same is deposited in banks?
A.1: Such group of people as mentioned in the question need not worry about such small amount of deposits up to Rs.1.5 or 2 lacs, since it would be below the taxable income. There will be no harassment by Income Tax Department for such small deposits made.”
Q.2: Will the Income-tax Department be getting reports of cash deposits made during this period? If so, will the current threshold of reporting requirement of reporting cash deposits of more than Rs. 10 lacs will only continue?
A.2: We would be getting reports of all cash deposited during the period of 10th November to 30th December, 2016 above a threshold of Rs. 2.5 lacs in every account. The department would do matching of this with income returns filed by the depositors. And suitable action may follow.
1. Tax-free status is for those whose total income does not exceed threshold limit of Rs. 2,50,000/Rs. 3,00,000/Rs. 5,00,000. One can imagine that savings of people with meagre income are not likely to exceed this amount. If they can prove they saved higher amount because they live in joint family and other family members have more income, then even higher cash deposits will not be taxed.
2. Housewives can even get exemption for higher cash deposits if it is savings out of pin money given to them by husbands for their expenses. Only that it will have to be established that husband is regular ITR-filer and has disclosed sufficient incomes and made sufficient cash withdrawals or transfers through banking channels to wife
3. Those whose cash deposits during the period 09-11-2016 to 30-12-2016 do not exceed Rs. 2,50,000 will not be picked up for scrutiny automatically as no reporting of the same is done by banks/post offices. But if their returns are picked up for scrutiny on random basis, this deposit can be examined and taxed at 30% if not satisfactorily explained. There is as yet no instruction from department to income tax officers to ignore demonetized notes deposited in bank account up to Rs. 2,50,000 during scrutiny assessment.
4. Again it is not as if you have Rs. 10 lakhs in old notes and you have four bank accounts and you deposit Rs. 2.5 lakhs in each of the 4 accounts, your Rs. 10 lakhs has become tax-free. Your accounts may not be reported by bank/post office to Income tax department. Also, remember all the four accounts are under your PAN number. But if your return is picked up in scrutiny at random, all four bank accounts will be called for and checked and if you fail to explain source of the amounts satisfactorily, then you will be taxed flat 30% on Rs. 10,00,000 without allowing for any regular threshold exemption limit as above.