Income Tax return filing for Financial year 2016-17 has begun. Department has already issued most of the Income Tax forms with various changes.
Let us discuss one of the important amendment brought, regarding filing of Income Tax Return.
AADHAR CARD or unique identification initiative by Government of India, has reached and connected to greater mass. As per data issued by government, approximately, 114 crore Aadhar cards have been issued till now. Most of the citizens or assessees earning taxable income are having the aadhar card. Government gave option to quote Aadhar card in Income Tax returns 2 years ago. But assessees filing returns did not show much interest in that and not mentioned Aadhar number in returns.
Now government is moving steps ahead to link details with Aadhar card, in fight against black money. In Finance Bill 2017, government has made seeding of PAN card with Aadhar card mandatory to file the Income Tax Return after 1st July.
If you have names with different spelling or date of birth is different in Aadhar card and PAN Card then it is the right time to get either of the 2 updated. Because Name, Gender and Date of Birth should match at both the places, else seeding will not be successful.
It is better to look after these matters now rather than getting into hassle in July.
If your details on PAN Card are incorrect then you have to either apply online through TIN-NSDL website.
But if your Aadhar Card details are incorrect then either visit UIDAI website. or the nearest Aadhar Enrolment centre.
The union budget 2017-18, laid down by Finance Minister Mr. Arun Jaitley, on the 1st of February, had several reforms for the growing sector of the economy i.e., the start-ups. After the launch of the Start-up India Project by the Prime Minister last year, the budget also introduced several relaxing norms for the start-ups. This year’s Budget has turned out to be in line with government’s vision and policies. It made several crucial announcements impacting start-ups directly and indirectly.The budget laid down measures that could provide relief to start-ups. The most significant points were:
As a relief to start-ups, the Government proposed to extend the time period for availing tax benefit for three years in the first seven years of existence instead of three years out of first five years, a move that will allow new ventures to extract full benefit of the permitted deductions.
For the purpose of carry forward of losses in start-ups, the condition of continuous holding of 51 per cent of voting rights has been relaxed. However, this is subject to the condition that the holding of the original promoter/promoters continues.
In order to allow companies to use MAT(Minimum Alternate Tax) credit in future years, it was proposed to allow carry forward of MAT up to a period of 15 years instead of 10 years.
Besides, the Budget proposed to reduce the income tax rate for smaller companies with annual turnover up to Rs. 50 crore to 25 per cent, in order to make micro, small and medium enterprises (MSMEs) more viable and also to encourage firms to migrate to company format and hence encouraging more start-ups to come forward.
It creates a strong financial background as filing income tax return online creates financial credibility of the assessee thereby assisting him in easy fund procurement.
Luxury of reducing taxable income in forth coming years by the option of carrying forward losses on various heads of income.
If you want to claim refund then you must file income tax return!
No threat from the income tax department in form of scrutiny notices or search and raids.
Submitting income tax returns of past three years even if it is a NIL return to banks or financial institutions for smooth processing of Loans like housing, education, vehicle etc.
Foreign travel is possible only through VISA and VISA is possible only through submission of IT returns as one of the documents.
Quick registration of immovable properties in some of cities of India.
It is a standard proof of income of a person which establishes record with the tax department.
You can use the amount donated as deductions which are tax friendly, thereby reducing your taxable income.
You can even claim the amount of LIC premiums paid as deduction and reduce the tax liability.
Who knew that even tuition fees paid of children can act as a tax saving tool? Generally people are unaware that deduction of tuition fees paid for two children is available u/s 80C of the income tax act 1961.
All your income is legal and white money now, thus making you a responsible citizen and contributing in Swachh (Clean) Bharat (India) Abhiyaan (Campaign) in true sense.