PENALTY FOR LATE FILING / NON – FILING TDS RETURN

PENALTY FOR LATE FILIG / NON-FILING OR INCORRECT FILING OF TDS RETURN W.E.F JULY 2, 2014 U/S 271H

PENALTY U/S 271H FOR DELAY IN E TDS RETURN

TDS Return to be filed every Quarter within 15 days of every Quarter.

APRIL – JUNE	15th of JULY
JULY – SEPTEMBER	15th of OCTOBER
OCTOBER – DECEMBER	15th of JANUARY
JANUARY – MARCH	15th of MAY

 

Department is collecting late payment fee u/s 234E Rs. 200 per day till filing of E TDS return subject to maximum of TDS amount or Rs. 200/- per day, whichever is low.

Similarly, new section 271H inserted w.e.f July 2, 2014, which discuss about Non-filing of TDS returns within 1 year from due date and Incorrect E TDS Return. Penalty of Rs. 10,000 minimum to maximum of Rs. 1,00,000 u/s 271H.

 

In simple words, 234E and 271H both sections are applicable, in case of non-filing or late filing of E TDS return in case TDS returns are not filed in due date.

NSDL issued latest FVU software recently, as per new software, addition of new challan(s) is not possible in correction E TDS return.

Deduction u/s 54EC – In case of Non-availability of Bonds

Deduction u/s 54EC is allowable if Investment made in REC Bonds after 6 months, due to non-availability of Bonds.

Deduction u/s 54EC is allowable to assesse if investment made after 6 months, if assesse desirable bonds (NHAI or REC) are not available during the investment period due to limited period non-availability.

Refer further details IT APPEAL NO. 3731 OF 2010, JULY 27, 2012

Date extended for IT return AY 2015-16

Last date for filing income tax return for the assessment year 2015-16 ( financial year 2014-15) extended to 07/09/2015 from 31/08/2015.

Those who missed the earlier due date, can file the return’s.

ITR 1 – Validation Rules for AY 201 5-16

Sl. N	Scenarios
1	Tax computation has been disclosedbut Gross Total Income is nil.
2	“Income details” and “Tax computation” have not been disclosedbut details regarding “Taxes Paid” have been disclosed.
3	Gross Total Income is not equal to the Total of Incomes from Salary, House Property & Other Sources.
4	“TDS” or “Tax paid” claimed in “Part D -Tax Computation and Tax Status” is inconsistent with the details provided in Sch IT, Sch TDS1 & Sch TDS2.
5	The details of “Bank Accounts held during the year” do not match the number of bank accounts reported.
6	When “House Property” is “Self occupied”, loss from HP is more than 2 lakhs.
7	The assessee is governed by Portuguese Code but “PAN of Spouse” is not provided.
8	In Sch 80G Donee PAN is same as “Assesse PAN” or “PAN at Verification”
9	“Name” of taxpayer in ITR does not match with the “Name” as per the PAN data base.
10	The sum of amounts claimedat TDS, Advance Tax & Self-Assessment Tax is not equal to the amount claimedat “Total Taxes Paid”.

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EXTENSION OF DATE FOR RECEIPT OF ITR-VC IN CPC, BENGALURU, FOR ASSESSMENT YEARS 2011-12

There are many taxpayers who have uploaded their Income Tax Returns electronically (without digital signature Certificate) for A.Y. 2011-12 [filed during F.Y. 2012-13] and for ITRs of A.Y. 2012-13 [filed on or after 1.4.2012], but have either not filed the corresponding ITR-V or have filed it with the local Income-tax office. ITR-V is accepted only at the Centralized Processing Center (CPC) of the Income-tax Department at Bengaluru by ordinary or speed post. Therefore, a final opportunity is being given to such taxpayers to regularize their Income-tax returns.

All such taxpayers may mail the ITR-V, by 31st October, 2013, by ordinary post or speed post at Post Bag No. 1, Electronic City Post Office, Bengaluru -560100 (Karnataka). Taxpayers who have filed their ITR-V with the local Income-tax office may again mail their ITR-V to the CPC by 31st October, 2013. Those taxpayers who have earlier mailed their ITR-V, but have not received the acknowledgement e-mail from the CPC, may mail their ITR-V to the CPC again.

The ITR-V form should be mailed to the CPC only at the above address by ordinary post or speed post. Taxpayers may note that no other place or form of delivery will be accepted.

Taxpayers may also note that without acknowledgement of the ITR-V from the CPC it would not be possible for the Income-tax Department to process the Income-tax returns or issue any refunds therefrom, as these would be treated as not having been filed with the Department.

Who earlier missed, submit your signed copy of ITR V to IT office, Bangalore.

Income tax return through online / E filing

Filing of income tax return through online / E filing is mandatory for taxpayers whose income during the financial year is above 5.00 lakhs from current assessment year.

Taxpayers can file their IT return through online at income tax website, other online portals or you can contact any tax assistant or CA.

Sum incurred on construction after purchase of a readymade property would be eligible for sec. 54 relief

A property may have been purchased as a readymade unit but that does not restricts the buyer from incurring any bona fide construction expenditure on improvisation or supplementary work. Accordingly, as long as the assessee has incurred the bona fide construction expenditure, even after purchasing the unit, the additional expenses so incurred would be eligible for section 54 deduction

HELD

• The use of words ‘purchased or constructed’ in section 54 does not mean that the property can either be purchased or constructed and not a combination of both the actions.

• A property may have been purchased as a readymade unit but that does not restricts the buyer from incurring any bonafide construction expenditure on improvisation or supplementary work.

• Accordingly, as long as the assessee has incurred the bona fide construction expenditure, even after purchasing the unit, the additional expenses so incurred would be eligible for qualifying investment under section 54.

• The cost of purchase under section 54 does include any capital expenditure incurred by the assessee on such

Income Tax Returns AY 2013-14 FY 2012-13

Income Tax Returns for the FY 2012-13 / AY 2013-2014;

It is well known fact that tax payers are now required to file their Income-tax Return for the Financial Year 2012-13 relevant to the Assessment Year 2013-14. These Income-tax Returns in most cases (Individuals / HUFs, non-Audit cases..)have to be filed by 31st July, 2013.

However, for the Corporate Sector as well as for persons who are having the requirement of tax audit the last date of filing Income-tax Return happens to be 30th September 2013.

House Rent Allowance – Income Tax Provisions

House Rent Allowance (HRA) allowance is received by the salaried class employees. HRA allowance is allowed as per the section 10(13A) of Income tax act in accordance with the Rule 2A of the Income Tax Rules.

HRA exemption is allowance only when you are in receipt of HRA allowance from your employer and you are staying in rented house; HRA exemption is allowed only to the period staying in rented premises;

HRA CALCULATIONS:

As per Section 10 (13A) and rule 2A exemption in respect of house rent allowance is based upon the following –

1) An amount equal to 50 per cent of the salary, where the residential house is situated at Bombay, Kolkata, Delhi or Chennai, and an amount equal to 40 per cent of the salary where the residential house is situated at any other place.

2) House rent allowance received by the employee in respect of the period during which rental accommodations is occupied by the employee during the previous year.

3) The rent paid in excess of 10 per cent of the salary.
Exemption is allowable on least of the above 3 calculations;

“Salary” for this purpose means – basic salary and includes dearness allowance if the terms of employment so provide. It also includes commission based on fixed percentage of turnover achieved by an employee as per the terms of contract of employment. But it does not include any other allowance or perquisite, and salary is calculated for this purpose on “due” basis

How to Claim HRA Exemption:

1. You need to submit proof of rent paid through rent receipts / rental agreement, duly signed and stamped, along with other details such as the rented residence address, name of the owner, period of rent etc. Pan number of premises owner is mandatory in case of rent paid exceeds INR 15,000 p.m.

2. You can avail HRA exemption and housing loan exemption simultaneously. You can claim HRA exemption still provided you fulfil the conditions (discussed above) of HRA. i.e., you should have been staying in rented premises and paying rent for it;

Sample Example:

For example A is earning basic salary of Rs. 20000 per month and HRA allowance of Rs. 8000 per month and he is paying rent of Rs.5000 per month in Delhi / Hyderabad.

1. A is staying in Delhi

HRA calculations: Least of:

a. Actual HRA received – Rs. 8000
b. 50% of Basic Salary – Rs. 10000
c. Rent paid in excess of 10% of the salary – Rs. 3000
(Rent paid 5000 – (20000*10% of basic salary)) = 3000

So, 3000 is the least and will be exemption allowable for HRA deduction

2. A is staying in Hyderabad (other than Metro)

HRA calculations: Least of:a. Actual HRA received – Rs. 8000
b. 40% of Basic Salary – Rs. 8000
c. Rent paid in excess of 10% of the salary – Rs. 3000
(Rent paid 5000 – (20000*10% of basic salary)) = 3000
So, 3000 is the least and will be exemption allowable for HRA deduction