E-Filings

Filing returns is a sign you are responsible. The government mandates that individuals who earn a specified amount of annual income must file a tax return within a pre-determined due date. The tax as calculated must be paid by the individual. Failure to pay tax will invite penalties from the Income Tax Department.

Under the Income Tax Act all individuals below the age of 60 years are required to file income tax return if total income exceeds Rs. 2.5 lakhs. In the case of individuals over the age of 60 years, but below 80 years, income tax filing is mandatory if total income exceeds Rs.3 lakhs. Individuals over the age of 80 years are required to file income tax return if the total income exceeds Rs.5 lakhs. Income Tax Returns may be filed for different types of people like Individual, HUF, Company, Partnership Firm, Trust (Based on Profession or Business)

Forms for filing the Income Tax Return are

• ITR 1 – For individuals being a resident other than not ordinarily resident having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh

• ITR 2 – For Individuals and HUFs not having income from profits and gains of business or profession

• ITR 3 – For individuals and HUFs having income from profits and gains of business or profession

• ITR 4 – For presumptive income from Business & Profession

• ITR 5 – For persons other than:- Individual/HUF/Company /Person filing Form ITR-7

• ITR 6 – For Companies other than companies claiming exemption under section 11

• ITR 7 – For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)

On Different Slab rates only the income has been taxed with Exemptions, surcharge etc. Within due dates returns are to be filed according to the people & their nature of business/profession, otherwise penalties & interest will be charged.

Penalty for Not Filing Income Tax Return

Not filing your Income Tax Return would result in:

• Receiving a notice from Income Tax department

• Not being able to obtain refund of excess TDS Deducted.

• Penalty interest of  1% per month or part thereof will be charged until the date of payment of taxes. For returns of FY 2017-18 and on wards, penalty of Rs 5,000 will be charged for returns filed after due date but before 31^st December. If returns are filed after 31^st December, a penalty of Rs 10,000 shall apply. However, penalty will be Rs 1,000 for those with income up to Rs 5 Lakhs.

• Not being able to set off Losses. Losses incurred (other than house property loss) will not be allowed to be carried forward to subsequent years, to be set off against the future gains.

TAN or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government’s collection of tax is proponed and the responsibility for paying tax is diversified. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government – quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.1,80,000 per year, etc.Those entities have TAN Registration must then file TDS returns. TDS returns are due quarterly.

When and Whom should TDS be deducted?

Any  person  making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit. Also, such Individuals and HUF liable to deduct TDS @ 5% need not apply for TAN.The complete list of Specified Payments eligible for TDS deduction along with the rate of TDS, the Tax Deducted at Source must be deposited to the government by 7th of the subsequent month. Tax Deducted at Source has to be deposited using Challan ITNS-281 on the government portal

Filing of TDS returns

Filing Tax Deducted at Source returns is mandatory for all the persons who have deducted TDS. TDS return is to be submitted quarterly and various details need to be furnished like TAN, amount of TDS deducted, type of payment, PAN of deductee, etc. Also, different forms are prescribed for filing returns depending upon the purpose of the deduction of TDS. Various types of return forms are as follows:

TDS certificate

Form 16, Form 16A, Form 16 B and Form 16 C are all TDS certificates. TDS certificates have to be issued by a person deducting TDS to the Assessee from whose income TDS was deducted while making payment.For instance, banks issue Form 16A to the depositor when TDS is deducted on interest from fixed deposits. Form 16 is issued by the employer to the employee.

EPF Filings

PF is a social security system that was introduced for the purpose of encouraging savings among employees, so as to benefit them during the course of their retirement. Contributions are made by the employer and the employee on a monthly basis. PF contributions can only be withdrawn by the employee at the time of his/her retirement, barring a few exceptions. All employers having PF Registration are responsible to file returns on a monthly basis. The filing of returns must be completed by the 25 of each month.

Form 2

This form is filed for the purpose of declaration and nomination under the flagship schemes of Employees Provident Fund and Employees Family Pension. It must be filed by an employee when he joins an entity.  The form must be submitted along with Form 5. Form 2 is divided into two distinct parts:

Part A

Part A of Form 2 specifically deals with nominating the recipients of EPF balance of a particular account holder, in the event of his/her death.

Part B

Part B should contain the details of the nominee as already specified in Form A. In addition to it, details of the family members who are eligible to receive the children/widow pension must be furnished.

Form 5

Form 5  is a monthly report which contains details pertaining to the employees who have been newly enrolled into the provident fund scheme.

Form 10

Form 10 is a monthly report that contains details of the employees who have ceased to be a part of the scheme on a given month.

Form 12A

Form 12A is a report that includes the details of the payments contributed to the account of the respective employee in a particular month.

ESI Filings

Entities covered under ESIC

As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

• Shops

• Restaurants or Hotels only engaged in sales

• Cinemas

• Road Motor Transport Establishments

• Newspaper establishments (which is not covered under the factory act)

• Private Educational Institutions

After  the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:

• Register of Attendance of the Employees

• Form 6 – Register

• Register of wages

• Register of any accidents which have happened on the premises of the business

• Monthly returns and challans