MAJOR CHANGES INTRODUCED IN ITR- 2 IN 2020-21

FORM NO. 2

1. Resident but Not an Ordinary Resident and Non Resident Individuals have to file their income tax returns in ITR -2 even in case total income is below Rs.50 lacs.
2. The Assessee should disclose in case he is filing return other than Proviso 1 to Section 139(1)
a. Cash deposit above Rs. 1 crore in the current Accounts in bank
b. Expenditure incurred above Rs. 2 lacs for every travel for himself or for others.
c. Expenditure incurred above Rs. 1 Lacs on .account of house only

3.  Resident individuals having house property more than one ………. shall also file ITR-2
– ITR-2 continues to apply to resident individual having income exceeding Rs. 50 lacs
– Individuals having income from profit and gains of business, cannot file ITR 2
– In case an individual is a director in a Company or holds unlisted Company’s equity shares, following should also be disclosed
– Name of the company, type of Company, PAN number, listed or unlisted DIN
– In case of short-term / long-term capital gains from sale of land / building or both, the details of buyer’s, name, PAN, Aadhaar No., share of ownership, and address has to be given.

4. A separate Schedule 112A for the calculation of the long-term capital gains on the sale of equity shares or units of Business Trusts which are liable to be taxed.
5. Under other source a taxpayer should provide the details of “any other income’.
6. The details of deduction against income from other sources should be provided.
7. Deduction under section 57:-
a. Expenses (in case other than family Pension)
b. Deduction under section 57 (ii)(a) (in case of family Pension only)
c. Depreciation (available only if income offered in i c of schedule OS)

8. Schedule VI A for tax deduction amended to include deduction under section 80EEA and 80EEB.

9. In case of business trust or investment fund the details of ‘capital gains’ income and ‘dividend’ income should be provided.
10. The details of tax deduction claim for investment or payments or expenditure made between 1st April, 2020 to 30th June, 2020 in schedule d “D I” of part “B” should be mentioned.


10.  Long term capital gains –

Payments / acquisitions / purchase consideration for the purpose of claiming deduction under section 54 / 54 CB

 Amount utilized out of capital gains account (as per SL B10 a of schedule CCs specially amount utilized between 1st April, 2020 to 30th June, 2020.

11. Short term capital gain-

 Under section 54B account utilized out of capital gain account as per SL No. A 6a of schedule “CG” and amount utilized between 1st April, 2020 to 30th June, 2020 separately

12. While providing the details of bank account if a taxpayer selects multiple bank accounts for credit of refund, the Income Tax Department may choose any account for processing the refund.

 Details of bank account for refund -to be given

 

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Know The Impact Of COVID-19 On Taxation In India

Though our government has extended the deadline for ITR (Income Tax Return) till 30th June, 2020, start looking for a professional offering tax services instead of waiting for the deadline. The impact of coronavirus on income tax deadlines and penalties for taxpayers has been quite drastic. Our government has offered numerous relaxations under the Income Tax Act. The objective was to help taxpayers and ease their financial burden during the coronavirus pandemic.

They now have more time to file income tax returns. During a recent press meet in New Delhi, our finance minister Nirmala Sitharaman has reduced penalties and delayed the due dates for numerous direct taxes. The novel coronavirus outbreak has not only been declared as a pandemic but has already infected thousands of Indians in the last few weeks. The lockdown imposed by our Government has shut down numerous businesses temporarily all over India.

chartered accountant Kolkata

Lower Interest Rates

Not only did our Finance Minister extend the last date to file income tax returns from March 31st to June 30th but even the interest rate you have to pay for delaying advanced taxes payment has been lowered. Other types of taxes where the interest rates have been lowered are tax collected at source, tax deducted at source and equalisation levy. Earlier, the interest rates were between 12 to 18 percent. It has now been reduced to 9 percent.

How Did The Extension Help?

The extension of the deadline and decrease in interest rates have become a blessing in disguise for thousands of taxpayers during the pandemic. Tax experts and professionals offering tax services in Kolkata feel that the reduction in interest will help taxpayers preserve their liquidity during the economic crisis. The last day for linking Aadhaar with PAN card was extended from March 31 to June 30th.

Changes In The ‘Vivaad Se Vishwas’ Scheme

Earlier, a taxpayer had to pay 10% interest if he made payment under the tax dispute resolution mechanism after 31st March. Since India is under complete lockdown till 30th April, our Finance Minister has declared that taxpayers don’t have to pay any additional interest if they made the payment till 30th June. The relaxation and extension of the ‘Vivaad Se Vishwas’ scheme with benefit businesses with past liabilities, especially those with high-interest liabilities.

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COVID-19 has disrupted almost every business operations with decrease in cash flows. If you are also one of those business owners who could not make the payment till March 31st, get in touch with an experienced professional offering tax services and he will let you know what you should do next to prevent fines.

Time Limit Extension Under Direct Tax Statuses

Few events for which the Indian Government has extended the due dates are intimation to the tax department, issue of notice, returns under various direct tax statutes and filing of appeals, among others. The time limit has been extended for other direct tax statues as well, get in touch with a tax expert to know more. The announcement made by our financial ministry will be implemented by making some necessary amendments and issuing circulars.

How to choose the best institute for pursing CA in Kolkata?

Chartered Accountants are professionals who are employed by organizations to audit and maintain the accounting systems. These professionals either work as employees inside a company or gives professional advice for a onetime fee. There are many professional coaching centers for chartered accountant where you can enroll and get tuition to clear this difficult exam.

There are some prerequisites you should keep in mind while selecting the institute of your choice. This article will navigate you through the criteria’s you should keep in mind while embarking on the endeavor to find the perfect professional help to clear the CA hurdles.

chartered accountant skills

Do Your Research

Searching online is considered the best bait these days as you will get a lot of institute names in your area. Also, these institutes will be ranked according to their performances and there will be reviews accompanying them. It will be healthy for you to assess and come with the best institute of your choice. It is always better not to leave your judgment on the internet alone as all institutes these days have marketing wings to promote themselves.

Corroborate Your Facts

Before making your selection, it’s always wise to call up the institute and clear your doubts. Seek out ex students from the institutes and learn from their engagements with the coaching center. Verify all the credentials, certificate and services offered by them before making your final choice.

Timely Course Completion

This is one of the most important criteria while choosing an institute. Coaching classes have a tendency to drag their classes well after the stipulated completion date. You should make sure that they complete all their courses and assignments at least two months before the exams. It will give you the much needed time to revise your papers.

Checkout the Faculty

Faculty of an institute should be your first criteria for choosing the institute of your choice. Checkout whether the faculty has the required years of experience for training students in CA.You should judge the quality of the teachers, the method of teaching and strategies employed by them while conducting classes.

CA in Kolkata

Compare the Fee Structure

Exercise your judgment before getting lured by the discounts offered by the institutes. Scrutinize the normal fees taken by the institute as you can’t discontinue midsession.

A good institute can make your career, while a bad one can ruin it. The best institutes will not only train you but will also make sure that you become a well groomed professional. So, it is imperative to make your choice and this article will definitely make your search much easier than ever.

Hire GST Consultants For Small Businesses And Reap Numerous Benefits

For someone not aware of the term yet, GST or the Goods and Services Tax is a value-added tax levied on goods and services generally sold for domestic consumption. The tax is paid by the consumer and provides revenue for the government. More than 10 years have passed since the bill was passed and the concept of GST has evolved drastically over the decade. It has almost transformed the indirect taxation system in India. It is not just about big organisations but even start-ups and small business owners can reap numerous benefits with GST implementation as it helps in simplifying the indirect tax structure.

4 Reasons Why Small Businesses Should Hire GST Consultants In Kolkata

  • Starting A Business Becomes Easy

Earlier, business owners had to visit the sales tax department in the State they are willing to start a business and get their VAT registration done. This became a challenge for business owners operating in multiple States as different States had different procedures for tax registration. They could not maintain compliance with VAT regulations and would often end up paying fines. The GST registration procedure, on the other hand, is centralised and standardised. A single registration will be applicable across India.

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  • Multiple Taxes Integration

One of the main reasons why every State in India had different VAT rates, regulations and procedures is that the VAT regime under which goods and products were taxed was implemented by the Central government. There were also the central sales tax, purchase tax, luxury tax and additional customs duty which complicated it further. Numerous taxes were summed up into one tax under the GST regime. Few of the taxes subsumed under GST are services tax, central excise duty, state-level value added tax, additional customs duty and surcharges, among others.

 

  • Exemption For Start-ups And Small Businesses

One of the primary reasons why numerous start-ups and small business owners are hiring experienced GST Consultants is that there is GST exemption for them. Under the new GST regime, organisations whose turnover is less than 40 lacks annually don’t have to register their business under GST. If your business turnover is more than that but you don’t have prior experience in GST registration, make sure that the GST consultant you are hiring has dealt with start-ups and small businesses earlier.

 

GST Consultant in Kolkata

  • Ease The Process Of Doing Business

Few businesses like computer sales and service or restaurants which provided goods and services had to earlier comply with both service tax regulations and VAT. This became a challenge for business owners as different items had different rates and they had to calculate taxes for those transactions. The difference between goods taxes and service taxes vanished after GST was introduced which eased the compliance process. Even invoicing became easier for businesses as they had to adopt only one rate.

Since there are so many ways through which start-ups and small businesses can benefit from GST, it’s time you start looking for experienced GST consultants.

Know The Various Types Of Accountants Before Approaching One

If you are looking for a professional who can advice you on your tax affairs, it’s time you start looking for an accountant in your city. Not only will they help you to make your financial things run smoothly but also spot potential issues and solve them. If you think that you need them only for tax filing, it’s high time you debunk the myth. Approach the right professional and they can provide a host of services.

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5 Questions To Ask While Hiring An Income Tax Consultant In Kolkata!

Do you face difficulties while filing income tax returns? Are you on the lookout for professionals who can offer effective tax preparation services? Still wondering how to choose a professional who provides the right assistance and support? Fret not. All you need to do is check out few questions which you must ask a professional for making an informed choice!

When it comes to income tax, choosing the right consultant can indeed be an overwhelming task. Be it the aspects which must be taken into consideration or the qualities to look for in a professional, there are several factors which you must consider for taking the right decision. A prior knowledge of the selection process can thus help you in making a well-informed decision!

income tax consultant

Read on then to check out the questions which you must ask a professional before hiring him!

Few Essential Questions To Ask Before Choosing An Income Tax Consultant In Kolkata

1.What Types Of Clients Have You Previously Worked With?
It’s important to ensure that the professional or the firm you are willing to work with, has an understanding of the type of business you are associated with. For instance, a construction company needs to handle issues related to their contractual workers while a restaurant will have policies for wages and tips. Remember; you have to hire a specialist who has previously worked with businesses like yours and even knows the ins and outs of your industry.

2.Who Will Do The Work?
Inquire if the company outsources work to some third party or has its own team of experts to work for you. Since relying on such third parties can be a costly decision, it is always wise to choose a firm which has its own team of financial advisors, tax consultants and auditors. Further, you must ensure if the agency has any certified filing centre of its own.

3.Are You Available Throughout The Year?
Look for a reliable income tax consultant in Kolkata who is available throughout the year. Unlike some firms which keep their doors open only during the tax season, these reputed agencies boast of a diligent team of professionals who can cater to the issues of their clients anytime. From the appropriate arrangement of files to suitable documentation, these accounting firms specialise in offering a range of tax preparation services which are both effective and authorised.

4.How Do You Manage While Working With Multiple Entities?
For business owners who run more than one agency under their name, looking for professionals who have the capability to manage several entities at a time is of paramount importance. You need to remember that these are skills which not every specialist posses. Hiring a firm which can co-ordinate between your entities is important.

5.How Often Do You Communicate With Your Clients?
When it comes to the frequency of communication for planning tax issues, every professional is different. Inquire about the approach of the expert and ensure that you are satisfied with his degree of communication. Remember; you must feel comfortable while discussing your issues with him.

So what are you still waiting for? Quickly find a reputed consultancy agency in your area and start availing exemplary income tax related issues!

Double Taxation Agreement With Maldives

double taxation treaties

SM Gupta & Co, a tax consulting firm helps you in saving your taxes and provides you new scheme if any.

An agreement provides for relief from double taxation for airline enterprises of India & Maldives by way of exemption of income derived by the enterprise of India from the operation of aircraft in international traffic from Maldivian tax and vice versa.

Tax Benefit/Incentive on Various Digital Payment of Government Taxes:

Govt. of India’s Cabinet of ministers has decided to give incentives on payment through debit card, credit card and online banking. It has approved digital payment being keen to move from a cash dominated payment ecosystem to cash less one, to eradicate the black money menace from the country. The cabinet approved several short term measures to be implemented within a year and medium term measures to be implemented within two years by the govt.

It has also taken steps ,

  1. For withdrawal of surcharge or service charge or convenience fee on card & digital payment.
  2. Rationalization of telecom service charges for digital transaction.
  3. Promotion of mobile banking.
  4. Creation of necessary assurance mechanism for quick resolution of fraudulent transactions.
  5. Promotion of digital payment will reduce tax evasion and tax avoidance.

No taxes on digital payment

The cabinet has approved no tax on ATAL innovation scheme and ATAL pension scheme. Self employment and talent utilization schemes for focusing on innovation & entrepreneurship.

Tax Services Kolkata Specialists of Hazardless Taxation and Audit

Tax consultants are also referred as tax advisers. They are trained in tax law services. They are experts and specialists to make common people and business professionals understand about the tax regulations. They always try to advice their clients to follow the government regulated tax rules and norms accurately and timely.

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TAX – Something we cannot avoid!

Though the idea of giving tax is always not soothing, but still it’s only because of the system where people have to give tax in a certain rate, the whole country survives. In other way, the country’s economy is indirectly related to taxation.

tax services‘Tax’ is a word which everyone is familiar with. It’s known to all that a certain amount of money is deducted from our salary as income tax. It is normally the main source of fund using which the Government serves the public, the whole country. It is a compulsory financial charge or any other kind of levy in form of monetary contribution which is imposed by the Government on various financial activities, investment and expenditure of individuals and various business organizations.

The mandatory amount you are bound to pay

Tax services fall into a system by which Governments demand an amount on people’s financial income. To regulate the system properly there are also variegated rules. Every business entity and individual have to give a proof in the form of income tax return each year to ensure that they don’t owe any taxes to the Govt.

Tax too has a small history behind it

  • Tax was first introduced in America when people were fighting the war of 1812.
  • Its main purpose was to fulfill the huge debt that was caused due to the massive war.

After that the system of giving tax became permanent in the early 20th century.

auditorAudit and taxation are related to each other by their unbiased nature. An auditor is mainly appointed to take care of the fact that the concerned business organization is maintaining all the financial records of the company honestly. They are mainly of two types, independent auditors those who are not under the jurisdiction of the audited company and public officials those who are generally elected. It’s not that auditors are only found in the public sector. Private companies are also seen to hire them. The internal and external auditors out there generally work on contract basis. They are employed to document and evaluate the whole function without being biased and to examine any business entity’s financial activity thoroughly.

Enjoy The Benefits of Tax Return on Time Through Tax Services Kolkata

Tax returns are very crucial and cannot be ignored under any circumstances. So, it is better to pay it on time.

In India, the Central Government controls the power to levy tax on any person who is employed and has an income, except the persons who are employed to the agricultural field. The amount or the percentage for this tax payment however varies depending on the amount of income.

income tax returnLike every other country of India, the rules for income tax returns Kolkata are same and mandatory. People, however, consider it unimportant to file the tax returns and as a consequence, end up paying a huge penalty or get wrapped up in some legal difficulties. There are quite some benefits of filing the tax returns in time. They are:

  • File your tax return as soon as possible:

Although the last date for filing the tax return for the previous banking year is July 31, it is always preferable that the taxes are filed before time. It provides the opportunity of not being messed up when the final moment arrives.

  • It is not mandatory to pay the penalty:

Even if the tax payer has failed to file the tax return within the last date that is July 31, he or she is not supposed to pay the penalty. However, for that, the tax payer needs to make sure that he or she does not have any pending liabilities for his or her tax returns. It is most likely that the tax returns are filed as soon as possible even in case the last date goes by.

  • Create a good record:tax services

When the tax payers maintains a good track record of paying the taxes on time, every year, the income tax department keeps the history of the tax payer in their records and it help the tax payers in their later life in case of loans and insurances and also when they apply for VISA.

However, for a detailed assistance in all the tax payment related services, it is very important that they hire tax services Kolkata who have the knowledge and the experience to assist them.