Filing income tax return can be slightly complicated with two Form 16

If you have changed jobs in the last financial year, income tax filing can be slightly complicated. You will have two Form 16 from new and previous employers.

Many times, new employers don’t consider the income and tax deduction of the previous one, which means the taxpayer need to compare the two Form 16 and compute the total income, deductions and tax liability. Every employer gives Form 16 to employees, which have details such income received, the tax that was deducted at source and tax deductions that an employee claimed. If the new employer has not considered these details …

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Everything you must know about tax benefits of medical and life insurance

Medical emergencies too when they arise, do take a toll on us. Therefore, it is equally important that we medically insure, both ourselves and our near and dear ones. The government actively supports this by allowing you some tax breaks upon taking of such insurance covers – be it a life or a medical cover.

Here are the benefits of life and medical covers and the conditions attached for claiming them.Tax benefits of a life cover

A life insurance policy taken with any insurer public or private, approved by the Insurance Regulatory and Development Authority of India (IRDAI), insuring life of oneself, spouse and/or children has the following tax benefits :

Deduction under Section 80C

The premium paid on the policy is eligible for a deduction under Section 80C upto a maximum of Rs 1.5 lakhs during any given financial year. Many believe that it is available only on LIC policies, which is not true. Any IRDAI-approved policy can fetch you this deduction – to both individuals as well as READ FULL ARTICLE HERE . . .

GST has reduced effective tax payable for all sectors, except power: Study

The goods and services tax (GST), rolled out on July 1, 2017, cut marginal tax rates–the real, effective tax a business pays, technically the difference between the pre-tax and post-tax rate of return on an investment–on businesses in India in all sectors, except electricity, which is exempt from the new tax regime, according to a new study.

The fall in marginal tax rates was in the range of 1-23 percentage points across sectors, according to estimates by Gaurav S. Ghosh, senior manager, EY, a global consultancy, and Jack Mintz, director of the school of public policy at the University of Calgary, Canada.

Marginal tax is the rate businesses end up paying on each new unit of investment after considering the effect of all statutory taxes levied. A higher marginal tax rate means businesses have lower incentives for increasing investment and vice versa, the authors explained.

At 23.2%, the transport sector saw the largest drop in marginal tax rate. At 0.9%, agriculture saw the read more

It’s illegal: Shops can’t ask you to pay more tax on discounted items

The District Consumer Disputes Redressal Forum in Chandigarh has once again ruled that shops cannot charge extra value added tax (VAT) on items sold on discounted price, saying that by doing so they are “indulging in unfair trade practice”.

Penalising Benetton India Private Ltd, the forum, presided by Rajan Dewan, observed: “The act of Benetton in charging VAT on discounted product clearly proves deficiency in service, having indulged into unfair trade practice on their part, which certainly had caused immense mental and physical harassment.”

The four-page order, signed on September 25, clearly mentioned that a similar question arose earlier for the determination of VAT before this commission twice — first in 2015 and later in the read more

Cafe Coffee Day raids: Income tax dept detects Rs 650 cr concealed income

The Income Tax Department raids on Cafe Coffee Day(CCD) retail chain since Thursday found Rs 650 crore concealed income from the documents seized, said an official on Sunday.

“Documents seized from the search operations at 25 places of Cafe Coffee Day and its group companies in Karnataka, Mumbai and Chennai have revealed concealed income of over Rs 650 crore,” a senior tax official told IANS here.The search and seize operations, which began on September 21, concluded on Sunday evening in the offices of the group involved in coffee, tourism, IT and other areas.

“The searches concluded with the group’s officials admitting to concealed income exceeding Rs 650 crore and the detection of undisclosed income, which is expected to be a much higher figure,” said another tax official in an e-mail to IANS.

The offices and residence of CCD’s founder-owner read more

GST impact: Yogi govt breached ‘One Nation, One Tax’ theme, say SMEs

The small and medium enterprises in Uttar Pradesh have pilloried the Yogi Aditya nath government for purportedly breaching the spirit of ‘One Nation, One Tax’ theme of the Goods and Services Tax (GST) by mandating e-Way Bill for goods of smaller value.
E-Way Bill is an electronic bill required for the movement of goods above the value of Rs 50,000 under GST. However, the Yogi government has mandated it even for transporting goods of the value of Rs 5,000 and above, which the entrepreneurs claim violated the GST rules, since the threshold is 10 times less than as provided under relevant rules.
Claiming that the e-Way Bill decision had been taken in haste, Micro, Small and Medium Enterprises (MSME) chamber, Indian Industries Association (IIA) has asserted it would hit the state’s small and medium businesses hard, while impairing their competiveness as well.
IIA has submitted its representations to the GST Council chairman, Centre, UP finance ministers, UP Tax department etc seeking the rollback of the decision for providing succour to the sector.
The MSME space in UP is estimated at over 4 million units and the sector contributes almost READ MORE

Got an I-T notice on cash deposits? Don’t panic and follow this guide

The Reserve Bank of India (RBI), in tandem with public sector and commercial banks, has undertaken data mining on a massive scale to identify how funds have been moved in the country after November 8. The government has come down hard on individuals and businesses operating doctored accounts, having deregistered and shut more than 100,000 companies and penalised more than 300,000 others.
The I-T department has also identified over 37,000 shell or paper companies channelling black money through methods such as hawala. As a part of its Operation Clean Money, the I-T department identifies individuals whose income tax return filings are inconsistent with the amount of cash deposits made in their bank accounts during the demonetisation drive. It then sends a notification through SMS or e-mail, and the individual must provide a response on the department’s website for the same.
If you receive such a notice, do not panic or ignore it. First, verify that the PAN (Permanent Account Number) stated on the notice is yours. Since the I-T department issues notices to a specific PAN and not based on your name, there are chances that an erroneous notice may READ MORE