ITR 4 Form is Available for Filing of Income Tax for year ending 31.3.2020

ITR 4 Form is Available for Filing of Income Tax for year ending 31.3.2020

Income Tax Department has issued ITR 4 after ITR 1.

Now Salary person and Business person can file ITR without any delay (FY 2019-20 and AY 2020-21).

Due date to file ITR 1, 2, 3 and 4 is 30^th November 2020 for year AY 2020-21. Wait is over for Business and Salary people to file ITR.

This ITR 4 has come with changes or amendments and asking some more details about financial transaction of business person like ITR 1. Business person has to provide information about only Business and other Income till last year. This time Department is asking other financial information like amount spent on electricity during last year.

ITR 4 can file by following person

Ø  Individuals, HUF and Firm resident: Individuals HUF and firm except LLP can file ITR 4.

Ø  Business Turnover: Above mention person is into business and turnover is less than 2 cr during last year can file ITR 4 on presumptive income method. If turnover will exceed Rs 2 cr in last year will require Tax Audit from CA.

Ø  Professional Income: The person has professional receipt instead of business Income and its professional receipt does not exceed Rs 50 L can file ITR 4.

Who is eligible to file ITR 4

Nature of Income	Turnover	Taxable Income	Remark
Business	Up to Rs 2 Cr	8% or More	Can File ITR 4
Business	Up to Rs 2 Cr	Less than 8%	Cannot File ITR 4, Go for TAX Audit by CA
Business	Above Rs 2 Cr	Any percentage	ITR 3 and  Go for TAX Audit by CA
Professional	Up to Rs 50 L Cr	50% or More	Can File ITR 4
Professional	Up to Rs 50 L	Less than 50%	Cannot File ITR 4, Go for TAX Audit by CA
Professional	Above Rs 50 L	Any percentage	ITR 3 and  Go for TAX Audit by CA
Insurance agent or Commission Agent	Any Income	Any Percentage	Cannot File ITR 4, Go for ITR 3

Following Business and Professional cannot file ITR 4

Ø  Director in any company: Business man or professional is director in any company cannot file ITR4.

Ø  Shareholder in Private Limited: Above mention person is shareholder in any private limited company cannot file ITR 4.

Ø  Show less than presumptive Income: If Above mention person wants to disclose income lower than prescribe limit cannot file ITR 4 and require to get audit from CA. alary person having income from salary is more than Rs 50 L in year

This year Income Tax Departments is asking other financial information from Business man and Professional person (not only balance sheet and profit and loss accounts). As we know all businessman has to file balance sheet and profit & Loss accounts which disclosed all financial information related to the person. This year Income tax department is asking financial information from all people too apart from balance sheet and profit & loss accounts.

All Business and Professional persons has to answer following question before submitting Income Tax return for FY 2019-2020 AY 2020-21

Deposit into bank: Had you deposited more than Rs 1 cr in one or more bank accounts during previous year?

Spent on Foreign Travel: Had you spent more than Rs 2 Lakhs on foreign travel on yourself or anyone?

Electricity Bill: Had you spent more than Rs 1 Lakhs on electricity in last year?

Investments under section 80 for deduction: If you had made investment under section 80 between April 2020 to June 2020, the investment has to separately disclose.

Medical Insurance: This time ITR 1 has separate sheet for section 80D medical Insurance and salary person has give information about medical insurance and its family member if you taken medical insurance for them.

https://www.youtube.com/watch?v=TZaKiywXWwQ&t=12s

So it is advisable to all Business and Professional person be careful and provide correct information about above questioner before filing and submitting ITR 4 for year ending 31.3.2020.

ITR 1 Form is Available to File AY 2020-21

ITR 1 Form is released for year ending 31.3.2020

Wait is over for Salary people to file ITR.

Now Salary person can file Income tax return for year ending 31.3.2020 (FY 2019-20 and AY 2020-21) as Income tax departments has issued much awaited ITR 1 on 2^nd June 2020.

Due date to file ITR 1 is 30^th November 2020 for year AY 2020-21.

This ITR 1 has come with changes or amendments and asking some more details about financial transaction of salary person. Salary person has to provide information about only salary income till last year. This ITR 1 form asking other financial information like amount spent on electricity during last year.

ITR 1 can file by following person

Ø  Ordinary resident: Individuals being a resident (Other than ordinary resident) and having Total Income up to Rs 50 L from salary in last year

Ø  One House Property: The person has one house property (Self occupied or let-out)

Ø  Bank Interest: The person has interest income from bank. Post office etc (Saving accounts, FD, PPF or NSC etc)

Ø  Agriculture Income: Agriculture Income Upton Rs 5000 in last year

Following salary person cannot file ITR 1

Ø  Director in any company: Salary person is director in any company

Ø  Shareholder in Private Limited: The salary person is shareholder in any private limited company

Ø  Salary More Than Rs 50 L: Salary person having income from salary is more than Rs 50 L in year

Ø  Any other Income: Salary person having business or capital gain income

Ø  More Than two House: Salary person has more than one house (Self occupied or let out or deemed to be let out)

Ø  Other source Income: Salary person has any other income apart from interest on bank (Lottery Income etc)

This year Income Tax Departments is asking other financial information form salary person (not balance sheet and profit and loss accounts). As we know all businessman has to file balance sheet and profit & Loss accounts which disclosed all financial information related to the person. This year Income tax department is asking financial information from all salary people too but not in form of balance sheet and profit & loss accounts.

All salary persons has to answer following question before submitting Income Tax return for FY 2019-2020 AY 2020-21

Deposit into bank: Had you deposited more than Rs 1 cr in one or more bank accounts during previous year?

Spent on Foreign Travel: Had you spent more than Rs 2 Lakhs on foreign travel on yourself or anyone?

Electricity Bill: Had you spent more than Rs 1 Lakhs on electricity in last year?

Investments under section 80 for deduction: If you had made investment under section 80 between April 2020 to June 2020, the investment has to separately disclose.

Medical Insurance: This time ITR 1 has separate sheet for section 80D medical Insurance and salary person has give information about medical insurance and its family member if you taken medical insurance for them.

So it is advisable to all salary person be careful and provide correct information about above questioner before filing and submitting ITR 1 for year ending 31.3.2020.

https://www.youtube.com/channel/UCFrumjD2mlkCaqj8dMUA0Nw?view_as=subscriber

ITR 1 form is released for year ending 31.3.2020

https://www.youtube.com/channel/UCFrumjD2mlkCaqj8dMUA0Nw?view_as=subscriber

Precaution in CORONA AGE

Update all password of banking and insurance details disclose to all family member and keep it safe location.

Future is uncertain in #CORONA Age so have some #financialplanning to fight with #CORONA. Be Safe and stay in home with bio and Financial precaution tips. #staysafeathome #stayhome

https://www.youtube.com/channel/UCFrumjD2mlkCaqj8dMUA0Nw?view_as=subscriber

Increase profitability with Business Associate

Expert comment by CA Manish TAX EXPERT Kumar Sinha Valentine is Symbol of Love "We Express our Love to Family, Friends and Life partner to create great bonding and unite for Life Long Relationship." Enjoy Valentine and other festival with customer and business associate Festival enjoyment is part of life and help in grow business in #lockdown2 #stayhomesafehome learning is continuous process for #success
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Precaution Before Quarantine in CORONA AGE

Future is uncertain in hashtag#CORONA Age so have some planning to fight with hashtag#CORONA. Be Safe and stay in home with bio and Financial precaution tips. hashtag#staysafeathome hashtag#stayhome
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Amendment in NPO

Amendment in NPO

FM has proposed various amendments in Union Budget 2020.

1.    Change in tax rate and choice to be given to tax payer to opt best option,

2.    More Incentive for Startup and

3.    Amendment in NPO etc

Today we will discuss about amendment in NPO.

Question: My NGO has life time validity of 12A and 80G certificate, should I apply for fresh registration?

Answer: Yes, As per amendment of union budget 2020 all Trust, Company u/s 8 and Society has to apply and acquire to get new unique number for each nonprofit organization.

Question: If I have to apply for new unique number for NPO how I have to file and what is process to get these number?

Answer: All society, trust and Company under section 8 have to apply in prescribed form (Form to be issued by Departments) on or after 1^st June 2020. All entity who has 12A, 10(23c) or 35 has to apply between 1^st June 2020 to 30^th September 2020. This form is file online and department will issue unique certificate to each entity. Any entity who has 12A, 10(23c) or 35 exemption certificate, can apply between the period and application can be made only for one section. It means now any society, trust or company under section 8 can apply only for one section. All enquiries for existing exemption certificate holder will be done online and unique identification number will be provided online. Income Tax Department must pass an order for such approval within three months of the application

Such fresh approval will be made for five years only and entity has reapply for renew before expiry of five years. Fresh registration will be provided in section 12AB.

Same rule is applied for 12 A and 80G. Even any entity has obtained registration in March 2020 itself, they require to file fresh application in new form.

Question: which Documents are require to submit with online form

Answer: Department will come with new form to be filed online and following documents is required

Ø  Three years Financial

Ø  PAN of entity

Ø  PAN of all governing body or member

Ø  Address proof of member

Ø  COI of entity

Ø  12A and 80G certificate

Ø  Ground of application and

Ø  Proof of NPO activity etc

Question: I incorporated one NPO and there is no social activity in the entity, can I apply for 12AB in new rule?

Answer: In old provision in NPO has no Social or any activity which is mention in bye laws or MOA , AOA, application form for 12A is rejected because one pre condition was attached society should start social activity before filing 12A and 80G etc.

I new Rule if any NPO has not started any social activity which is mention in their bye laws can apply for 12AB and department will provide provisional 12AB for three years. They have to reapply before expiry of three for renewed.

Question: I have registration of 12A and 80G, can I have to apply under both section for 12AB and 80G.

Answer: Section 12A and 80G are different section and both require separate registration. So all entity have to apply under section 12AB and 80G in new form separately.

Question: What to do If NPO has any amendments in bye laws.

Answer: There is no change in old process and new process of exemption for NPO. Where a Trust or Institution has made modification in its objects and such modifications do not confirm with the conditions of registration, application has to be done again with the designated authority within 30 days from the date of such modification.

Question: If any entity has not followed above process, what are consequences to entity?

Answer: If any entity has not applied for new unique number, exemption certificate will be withdrawn and entity has to pay.

Question: Is any limitation to received donation in cash

Answer: yes, Departments has imposed restriction on cash donation.

As per Section 80GGA Limit for donation is cash has been reduced from Rs 10,000 to Rs 2,000.

Question: any other reporting is to give NPO to governments

Answer: yes, all NPO has to report within specified time to departments about donor details. Statements will consist Donor Name, PAN, address and amount of donation along with mode of payments.

Question: What is due date to file ITR and Audit report

Answer: NPO can file ITR on or before 31^st October and Audit report has to file on or before 30^th September.

#NPO, #exemptioncerticate #12Aregistartion,#10(23c) #incometaxexemption,#trust #society #ngo

Youtube link 

https://www.youtube.com/channel/UCFrumjD2mlkCaqj8dMUA0Nw?view_as=subscriber

Budget 2020

Union Budget 2020

In order to provide significant relief to the individual taxpayers and to simplify the Income-tax law, I propose to bring a new and simplified personal income tax regime wherein income tax rates will be significantly reduced for the individual taxpayers who forgo certain deductions and exemptions," Finance Minister Nirmala Sitharaman said in her Budget 2020 speech as she proposed new income tax rates and slabs for those forgoing exemptions and deductions.

The new tax rates will be optional. Instead of actually simplifying, tax experts say that the dual tax rates might create confusion for individuals since they will have to calculate tax under both the regimes to see which is more beneficial.

Further, an individual will have an option to switch between the two rates on a year to year basis. But those with business income can only chose to switch once. These new income tax related proposals will come into effect from financial year 2020-21.

Direct Tax Amendments

Income (Rs)	Old Tax Rate (option 1)	New Tax Rate (option 2)
2,50,000	NIL	NIl
2.50.000 – 5.00.000	5 %	5 %
5,00,000 – 7.50.000	20 %	10 %
7,50,000 – 10,00,000	20 %	15 %
10,00,000 – 12,50,000	30 %	20  %
12,50,000 – 15,00,000	30 %	25  %
Above 15,00,000	30 %	30 %

New Slab rate is available for salary class and without having any deduction like insurance, PPF, child education, home loan interest etc.

Income (Rs)	Old Tax Liabilities (option 1) Assumption Rs 2,00,000 as Deduction 80 c and 80D and others. And Rs 50000 as standard deduction	New Tax Liabilities  (option 2) No Deduction is allowed
2,50,000	NIL	Nil
5.00.000	NIL	12.500
7.50.000	12,500	37,500
10,00,000	62,500	75,000
12,50,000	1,12,500	1,25,000
15,00,000	1,87,500	1,87,500
20,00,000	3,37,500	3,25,000

Above calculation on assumption for investment, and  Without levied surcharge and education tax.

Other Amendments

Ø  NRI will have to pay tax (Indian person who are outside India has to file ITR in India and disclose all income)

Ø  DDT is abolished but not in actual term: Dividend Distribution Tax is abolished and government is loss of Rs 25,000 corore loss as bale in hand of corporate but taxable in hand individuals.  (In our opinion minimum 20% or higher slab person investing into shares and got divided. As governments is claiming loss of DDT of Rs 25,000 crore as loose 18% DDT but governments will received tax at least 20% or higher rate so there is no loss of revenue. As per our opinion collect regarding Dividend will be higher from present scenario).

Ø  Unproductive land will be used for solar plant so it’s good news for land owner and power sector

Ø  Solar company is also charged with 15% if it is setup new company after 1^st oct 2019.

Ø  who invest in share and earn dividend  

Ø  Vivad se viswas scheme is for Income Tax and pay only principle amount if payments are made on or before 31^st March 2020.

Ø  Tax Audit Limit: Income tax audit limit increased to Rs. 5 Crores for those businesses who have less than 5% cash business.

Ø  Income from Foreign Sovereign Wealth Fund in India has been exempted for investments made till 2024 for a period of 3 years.

Ø  Taxation of ESOPs deferred to 5 years from date of exercising of option, sale of shares or leaving the company, whichever is earlier.

Ø  Startup Tax Incentive: Tax holiday available to startups extended to startups having turnover upto Rs. 100 Crores from the current limit of Rs. 25 Crores. Tax holiday extended to 10 years from 7 years

Ø  Tax on cooperative  Society: Tax rate of cooperative societies reduced to 22% plus 10% surcharge

Ø  Additional housing loan interest: Additional Interest deduction of 1.5 lakhs available to buyers of affordable houses now available for loans sanctioned up to March 31, 2021 (from earlier date of March 31, 2020)

Ø  Tax Holiday for Builders: Tax holiday of developers of affordable housing extended by another one year up to March 31, 2021.

Ø  Capital gain: Difference in value allowed up to 10% of stamp duty value for sale or purchase of immovable property.

Ø  For the purpose of determining residential status, the number of days for stay in India will be 120 days as against 182 days.

Ø  Residential Status: For Resident but not ordinary resident now test will be of nonresident in 7 out of 10 preceding years as against present condition of 9 out of 10 preceding years.

Ø  TCS Rate: TCS at the rate of 0.1% will be applicable on sale of goods if total sales to one person is more than Rs 50 lakhs by a person having turnover of more than Rs 10 crore.

Ø  TCS in foreign remittance under LRS exceeding Rs 7.00 lakh at the rate of 5%. Also on oversea tour package &5%.

Ø  TDS on ecommerce: TDS on e-commerce payment to e commerce participant at the rate of 1%

Ø  TDS on FTS  reduced under section 194J to 2%

Ø  12A and 80G for NGO: Charitable Trust Registration and 80 G exemption to be for 5 years. All existing trust to apply again (Its painful for trust and trustee for re apply and question mark on transparency )

Ø  80G: 80 G exemption holders to submit annual statement of donation received. Failure to submit such statement fee of Rs 200 per day for each day of default under section271G and penalty of Rs 10000 to Rs 1.00 laky under new section 271J.

Ø  Penalty for false entry of invoice or omitted invoice @100% of such transactions under new section 271AAD

Ø  LIC and IDBI disinvestments

Ø  Sensex open at 40,753 and closed at 39,735

Impact on goods due to budget

Costlier	Cheaper
Cigarettes, Tobacco	News Print
Imported Refined Veg oil, Ghee,	Light weight coated paper
Imported PCBA for Mobile	Sport Goods
Footwear	Finger print reader
Furniture	Domestic Mobile manufactured
Fans
Table Ware/ Kitchen wear or china ceramic
Imported Household items

Amount tracking for budget (Assumption Rs 1)

Paisa	Receiving		Paisa	Allocation
20 p	Loan (Borrowing)		6 p	Pension
18 p	Corporation Tax		6 p	Subsidies
18 p	GST		8 p	Defence
17 p	Income Tax		22 p	Center scheme
10 p	Non Tax Revenue		10 p	Other Expenditure
7 p	Excise duty		10 p	Finance commission
6 p	Non debt capital receipts		18 p	Interest
4 p	Custom		20 p	State Share for tax and revenue
100 p			100 p

All information is base on budget and other reliable source.

Manish Kumar Sinha