The government of India imposes an income tax on taxable income of individuals, Hindu Undivided Families (HUFs), companies, firms, co-operative societies and trusts (identified as body of individuals and association of persons) and any other artificial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961. The Indian Income Tax Department is governed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund its activities and serve the public. There are close to 35 million income tax payers in India.Income Tax payment can be done through the following banks mentioned in the below.Please find the income payment online instructions below
Following procedures can be followed for income tax e-payment
How do I make online tax payment sitting at home/office?1. Open a net-banking account with any of the banks listed above. 2. Go to website www.incometaxindia.gov.in , click on ‘pay taxes on-line’. 3. Fill in the required challan online. Help is available on screen as FAQ, downloads etc. 4. Make tax payment through net-banking account online. 5. A challan counterfoil will be available instantaneously on the screen with CIN (challan identification number). The Challan Identification Number (CIN) on this counterfoil should be quoted in Return of Income. 6. Print the counterfoil and also save it in the computer if required. 7. Check if your payment has reached the Income Tax Department at https://tin.tin.nsdl.com/oltas/servlet/QueryTaxpayerPersonal income tax Charge to Income-taxEveryone whose income exceeds the maximum amount, which is not chargeable to the income tax, is an assessed, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the relevant assessment year, shall be determined on basis of his residential status.Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act) for every Assessment Year, on the Total Income earned in the Previous Year by every Person.The chargeability is based on nature of income, i.e., whether it is revenue or capital. The rates of taxation of income are-:Income Tax Rates/Slabs Rate (%) (as per budget 2012)→ Up to 2,00,000 = 0%,→ 2,00,001 – 5,00,000 = 10%,→ 5,00,001 – 10,00,000 = 20%,→ 10,00,001 upwards = 30%,Up to 2,50,000 (for resident individual of 60 years or above)= 0,Up to 5,00,000 (for very senior citizen of 80 years or above)= 0.Education cess is applicable @ 3 per cent on income tax, surcharge = NAThe above will be changing based on the rules .. latest rules please visit below link
Residential StatusThe three residential status, viz. Resident Ordinarily Residents Resident but not Ordinarily Residents Non Residents
Income from Business or Profession
The income referred to in section 28, i.e., the incomes chargeable as "Income from Business or Profession"
shall be computed in accordance with the provisions contained in sections 30 to 43D. However, there are few
more sections under this Chapter, viz., Sections 44 to 44DA (except sections 44AA, 44AB & 44C), which
contain the computation completely within itself. Section 44C is a disallowance provision in the case non-
residents. Section 44AA deals with maintenance of books and section 44AB deals with audit of accounts
In summary, the sections relating to computation of business income can be grouped as under: -
1. Deductible Expenses - Sections 30 to 38
2. Inadmissible Expenses - Sections 37(2), 40, 40A, 43B & 44-C.
3. Deemed Incomes - Sections 33AB, 33ABA, 33AC, 35A, 35ABB & 41.
4. Special Provisions - Sections 42 & 43D
5. Self-Coded Computations - Sections 44, 44A, 44AD, 44AE, 44AF, 44B, 44BB, 44BBA, 44BBB, 44-D & 44-DA.
The computation of income under the head "Profits and Gains of Business or Profession" depends on the particulars and information available.If regular books of accounts are not maintained, then the computation would be as under: -Income (including Deemed Incomes) chargeable as income under this head xxx Less: Expenses deductible (net of disallowances) under this head xxx Profits and Gains of Business or Profession xxx However, if regular books of accounts have been maintained and Profit and Loss Account has been prepared
The government of India imposes an income tax on taxable income of individuals, Hindu Undivided Families (HUFs), companies, firms, co-operative societies and trusts (identified as body of individuals and association of persons) and any other artificial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961. The Indian Income Tax Department is governed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund its activities and serve the public. There are close to 35 million income tax payers in India.
Income Tax payment can be done through the following banks mentioned in the below.
Please find the income payment online instructions below
Following procedures can be followed for income tax e-payment
How do I make online tax payment sitting at home/office?
1. Open a net-banking account with any of the banks listed above.
2. Go to website www.incometaxindia.gov.in , click on ‘pay taxes on-line’.
3. Fill in the required challan online. Help is available on screen as FAQ, downloads etc.
4. Make tax payment through net-banking account online.
5. A challan counterfoil will be available instantaneously on the screen with CIN (challan identification number). The Challan Identification Number (CIN) on this counterfoil should be quoted in Return of Income.
6. Print the counterfoil and also save it in the computer if required.
7. Check if your payment has reached the Income Tax Department at
https://tin.tin.nsdl.com/oltas/servlet/QueryTaxpayer
Personal income tax
Charge to Income-tax
Everyone whose income exceeds the maximum amount, which is not chargeable to the income tax, is an assessed, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the relevant assessment year, shall be determined on basis of his residential status.
Income tax is a tax payable, at the rate enacted by the Union Budget (Finance Act) for every Assessment Year, on the Total Income earned in the Previous Year by every Person.
The chargeability is based on nature of income, i.e., whether it is revenue or capital. The rates of taxation of income are-:
Income Tax Rates/Slabs Rate (%) (as per budget 2012)
→ Up to 2,00,000 = 0%,
→ 2,00,001 – 5,00,000 = 10%,
→ 5,00,001 – 10,00,000 = 20%,
→ 10,00,001 upwards = 30%,
Up to 2,50,000 (for resident individual of 60 years or above)= 0,
Up to 5,00,000 (for very senior citizen of 80 years or above)= 0.
Education cess is applicable @ 3 per cent on income tax, surcharge = NA
The above will be changing based on the rules .. latest rules please visit below link
Residential Status
The three residential status, viz.
Resident Ordinarily Residents
Resident but not Ordinarily Residents Non Residents
Income from Business or Profession
Income from Business or Profession
The income referred to in section 28, i.e., the incomes chargeable as "Income from Business or Profession"
shall be computed in accordance with the provisions contained in sections 30 to 43D. However, there are few
more sections under this Chapter, viz., Sections 44 to 44DA (except sections 44AA, 44AB & 44C), which
contain the computation completely within itself. Section 44C is a disallowance provision in the case non-
residents. Section 44AA deals with maintenance of books and section 44AB deals with audit of accounts
In summary, the sections relating to computation of business income can be grouped as under: -
1. Deductible Expenses - Sections 30 to 38
2. Inadmissible Expenses - Sections 37(2), 40, 40A, 43B & 44-C.
3. Deemed Incomes - Sections 33AB, 33ABA, 33AC, 35A, 35ABB & 41.
4. Special Provisions - Sections 42 & 43D
5. Self-Coded Computations - Sections 44, 44A, 44AD, 44AE, 44AF, 44B, 44BB, 44BBA, 44BBB, 44-D & 44-DA.
The computation of income under the head "Profits and Gains of Business or Profession" depends on
the particulars and information available.If regular books of accounts are not maintained, then the computation would be as under: -
Income (including Deemed Incomes) chargeable as income under this head xxx Less: Expenses deductibl
e (net of disallowances) under this head xxx Profits and Gains of Business or Profession xxx However, if regular books of accounts have been maintained and Profit and Loss Account has been prepared
Net Profit as per Profit and Loss Account xxxAdd : Inadmissible Expenses debited to Profit and Loss Account xxx Deemed Incomes not credited to Profit and Loss Account xxx xxx Less: Deductible Expenses not debited to Profit and Loss Account xxx Incomes chargeable under other heads credited to Profit & Loss A/c xxx xxxProfits and Gains of Business or Profession xxx
Income from Capital Gains
Transfer of capital assets results in capital gains. A Capital asset is defined under section 2(14) of the I.T. Act, 1961 as property of any kind held by an assessee such as real estate, equity shares, bonds, jewellery, paintings, art etc. but does not include some items like any stock-in-trade for businesses and personal effects. Transfer has been defined under section 2(47) to include sale, exchange, relinquishment of asset, extinguishment of rights in an asset, etc. Certain transactions are not regarded as 'Transfer' under section 47.
For tax purposes, there are two types of capital assets: Long term and short term. Long term asset is that which is held by a person for three years except in case of shares or mutual funds which becomes long term just after one year of holding. Sale of such long term assets gives rise to long term capital gains. There are different scheme of taxation of long term capital gains. These are:
1. As per Section 10(38) of Income Tax Act, 1961 long term capital gains on shares or securities or mutual funds on which Securities Transaction Tax (STT) has been deducted and paid, no tax is payable. STT has been applied on all stock market transactions since October 2004 but does not apply to off-market transactions and company buybacks; therefore, the higher capital gains taxes will apply to such transactions where STT is not paid.
2. In case of other shares and securities, person has an option to either index costs to inflation and pay 20% of indexed gains, or pay 10% of non indexed gains. The indexation rates are released by the I-T department each year.
3. In case of all other long term capital gains, indexation benefit is available and tax rate is 20%.
All capital gains that are not long term are short term capital gains, which are taxed as such:
§ Under section 111A, for shares or mutual funds where STT is paid, tax rate is 10% From Asst Yr 2005-06 as per Finance Act 2004. For Asst Yr 2009-10 the tax rate is 15%.
§ In all other cases, it is part of gross total income and normal tax rate is applicable.
For companies abroad, the tax liability is 20% of such gains suitably indexed (since STT is not paid).
Income from Other Sources
This is a residual head, under this head income which does not meet criteria to go to other heads is taxed. There are also some specific incomes which are to be taxed under this head.1. Income by way of Dividends2. Income from horse races3. Income from winning bull races4. Any amount received from key man insurance policy as donation.5. Income from shares (dividend otherthan Indian company)DeductionWhile exemptions is on income some deduction in calculation of taxable income is allowed for certain payments.Section 80C DeductionsSection 80C of the Income Tax Act [1] allows certain investments and expenditure to be deducted from total income up to the maximum of 1 lac. The total limit under this section is ₹100,000 ) which can be any combination of the below:Contribution to Provident Fund or Public Provident Fund. PPF provides 8.8% return compounded annually. Maximum limit to contribute in it is 100,000 for each year. It is a long term investment with complete withdrawal not possible till 15 years though partial withdrawal is possible after 5 years. Besides, there is employee providend fund which is deducted from the salary of the person. This is about 10% to 12% of the BASIC salary component. Recent changes are being discussed regarding reducing the instances of withdrawal from EPF especially when one changes the job. EPF has the option of full settlement on leaving the job, taking VRS, retirement after 58. It also has options of withdrawal for certain expenses related to home, marriage or medical. EPF contribution includes 12% of basic salary from employee and employer. It is distributed in ratio of 8.33:3.67 in Pension fund and Provident fund Payment of life insurance premium. It is allowed on premium paid on self, spouse and children even if they are not dependent on father or mother. Investment in pension Plans. National Pension Scheme is meant to save money for the post retirement which invests money in different combination of equity and debt. depending upon age up to 50% can go in equity. Annuity payable after retirement is dependent upon age. NPS has six fund managers. Individual can make minimum contribution of Rs6000/- . It has 22 point of purchase (banks). Investment in Equity Linked Savings schemes (ELSS) of mutual funds. Among other investment opportunities, ELSS has the least lock-in period of 3 years. However, one should note that after the Direct Tax Code is in place, ELSS will no longer be an investment for 80C deduction.Investment in National Savings Certificates (interest of past NSCs is reinvested every year and can be added to the Section 80 limit)Tax saving Fixed Deposits provided by banks for a tenure of 5 years. Interest is also taxable. Payments towards principal repayment of housing loans. Also any registration fee or stamp duty paid.Payments towards tuition fees for children to any school or college or university or similar institution (Only for 2 children)Post office investmentsThe investment can be from any source and not necessarily from income chargeable to tax.
Section 80CCF: Investment in Infrastructure Bonds From April, 1 2011, a maximum of ₹20,000 is deductible under section 80CCF provided that amount is invested in infrastructure bonds. This is in addition to the 100,000 deduction allowed under Section 80C. However this deduction has not been extended to Financial year 2012-13 .
Section 80D: Medical Insurance Premiums
Health insurance, popularly known as Mediclaim Policies, provides a deduction of up to 35,000.00 (₹15,000.00 for premium payments towards policies on self, spouse and children and ₹15,000.00 for premium payment towards non-senior citizen dependent parents or ₹20,000.00 for premium payment towards senior citizen dependent). This deduction is in addition to ₹1,00,000 savings under IT deductions clause 80C. For consideration under a senior citizen category, the incumbent's age should be 60 years during any part of the current fiscal, e.g. for the fiscal year 2010-11, the incumbent should already be 60 as on March 31, 2011), This deduction is also applicable to the cheques paid by proprietor firm.
Interest on Housing Loans Section
For self occupied properties, interest paid on a housing loan up to Rs 150,000 per year is exempt from tax. This deduction is in addition to the deductions under sections 80C, 80CCF and 80D. However, this is only applicable for a residence constructed within three financial years after the loan is taken and also the loan if taken after April 1, 1999.
If the house is not occupied due to employment, the house will be considered self occupied.
For let out properties, the entire interest paid is deductible under section 24 of the Income Tax act. However, the rent is to be shown as income from such properties. 30% of rent received and municipal taxes paid are available for deduction of tax.
The losses from all properties shall be allowed to be adjusted against salary income at the source itself. Therefore, refund claims of T.D.S. deducted in excess, on this count, will no more be necessary]Refund Status
State Bank of India (SBI) is the refund banker to the Indian Income Tax Department(ITD). Your tax refund details are sent to SBI, by the Income tax department. Then SBI will process the refund, and send you the refund intimation. While filing your return you can choose any one of the two Refund modes ECS or Paper(cheque). The refund status can be checked online at the NSDL site.
Corporate Income tax
For companies, income is taxed at a flat rate of 30% for Indian companies, with a 5% surcharge applied on the tax paid by companies with gross turnover over ₹1 crore (10 million). Foreign companies pay 40%.An education cess of 3% (on both the tax and the surcharge) are payable, yielding effective tax rates of 32.5% for domestic companies and 41.2% for foreign companies. From 2005-06, electronic filing of company returns is mandatory.
Tax Returns
There are five categories of Income Tax returns. 1. Normal Return2. Belated Return3. Revised Return4. Defective Return 5. Returns In Response To Notices
Normal Return
Returns filed within the return filing due date
Belated Return
In case of failure to file the return on or before the due date, belated return can be filed before the expiry of one year from the end of the relevant assessment year
Revised Return
In case of any omission or any wrong statement mentioned in the normal return can be revised at any time before the expiry of one year from the end of the relevant assessment year.
Defective Return
Assessing Officer considers that the return is defective, he may intimate the defect. Have to rectify the defect within a period of fifteen days from the date of such intimation.
Returns In Response To Notices
Assessing officer in the process of making assessment, may serve a notice under various sections like 142(1) , 148(1), 153A(a) or 153C. Returns are required to be furnished within the date specified on the respective notices.
Annual Information Return and StatementsAnnual Information ReturnThose who is responsible for registering, or, maintaining books of account or other documents containing a record of any specified financial transaction[14], shall furnish an annual information return in Form No.61A.Statements By ProducersProducers of a cinematographic film during the financial year shall, prepare and deliver to the Assessing Officer a statement in the Form No.52A,§ within 30 days from the end of such financial year or§ within 30 days from the date of the completion of the production of the film,whichever is earlier.Statements By Non-Resident Having A Liaison Office In IndiaWith effect from 01,June 2011, Non-Resident having a liaison office in India shall prepare and deliver a statement in Form No. 49C to the Assessing Officer within sixty days from the end of such financial year.Tax PenaltiesThe major number of penalties initiated every year as a ritual by I-T Authorities is under section 271(1)(c) which is for either concealment of income or for furnishing inaccurate particulars of income."If the Assessing Officer or the Commissioner (Appeals) or the Commissioner in the course of any proceedings under this Act, is satisfied that any person-(b) has failed to comply with a notice under sub-section (1) of section 142 or sub-section (2) of section 143 or fails to comply with a direction issued under sub-section (2A) of section 142, or(c) has concealed the particulars of his income or furnished inaccurate particulars of such income,he may direct that such person shall pay by way of penalty,-(ii) in the cases referred to in clause (b), in addition to any tax payable by him, a sum of ten thousand rupees for each such failure;(iii) in the cases referred to in clause (c), in addition to any tax payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or the furnishing of inaccurate particulars of such income.
Net Profit as per Profit and Loss Account xxx
Add : Inadmissible Expenses debited to Profit and Loss Account xxx
Deemed Incomes not credited to Profit and Loss Account xxx
xxx
Less: Deductible Expenses not debited to Profit and Loss Account xxx
Incomes chargeable under other heads credited to Profit & Loss A/c xxx
xxx
Profits and Gains of Business or Profession xxx
Income from Capital Gains
Transfer of capital assets results in capital gains. A Capital asset is defined under section 2(14) of the I.T. Act, 1961 as property of any kind held by an assessee such as real estate, equity shares, bonds, jewellery, paintings, art etc. but does not include some items like any stock-in-trade for businesses and personal effects. Transfer has been defined under section 2(47) to include sale, exchange, relinquishment of asset, extinguishment of rights in an asset, etc. Certain transactions are not regarded as 'Transfer' under section 47.
For tax purposes, there are two types of capital assets: Long term and short term. Long term asset is that which is held by a person for three years except in case of shares or mutual funds which becomes long term just after one year of holding. Sale of such long term assets gives rise to long term capital gains. There are different scheme of taxation of long term capital gains. These are:
1. As per Section 10(38) of Income Tax Act, 1961 long term capital gains on shares or securities or mutual funds on which Securities Transaction Tax (STT) has been deducted and paid, no tax is payable. STT has been applied on all stock market transactions since October 2004 but does not apply to off-market transactions and company buybacks; therefore, the higher capital gains taxes will apply to such transactions where STT is not paid.
2. In case of other shares and securities, person has an option to either index costs to inflation and pay 20% of indexed gains, or pay 10% of non indexed gains. The indexation rates are released by the I-T department each year.
3. In case of all other long term capital gains, indexation benefit is available and tax rate is 20%.
All capital gains that are not long term are short term capital gains, which are taxed as such:
§ Under section 111A, for shares or mutual funds where STT is paid, tax rate is 10% From Asst Yr 2005-06 as per Finance Act 2004. For Asst Yr 2009-10 the tax rate is 15%.
§ In all other cases, it is part of gross total income and normal tax rate is applicable.
For companies abroad, the tax liability is 20% of such gains suitably indexed (since STT is not paid).
Income from Other Sources
This is a residual head, under this head income which does not meet criteria to go to other heads is taxed. There are also some specific incomes which are to be taxed under this head.
1. Income by way of Dividends
2. Income from horse races
3. Income from winning bull races
4. Any amount received from key man insurance policy as donation.
5. Income from shares (dividend otherthan Indian company)
Deduction
While exemptions is on income some deduction in calculation of taxable income is allowed for certain payments.
Section 80C Deductions
Section 80C of the Income Tax Act [1] allows certain investments and expenditure to be deducted from total income up to the maximum of 1 lac. The total limit under this section is ₹100,000 ) which can be any combination of the below:Contribution to Provident Fund or Public Provident Fund. PPF provides 8.8% return compounded annually. Maximum limit to contribute in it is 100,000 for each year. It is a long term investment with complete withdrawal not possible till 15 years though partial withdrawal is possible after 5 years. Besides, there is employee providend fund which is deducted from the salary of the person. This is about 10% to 12% of the BASIC salary component. Recent changes are being discussed regarding reducing the instances of withdrawal from EPF especially when one changes the job. EPF has the option of full settlement on leaving the job, taking VRS, retirement after 58. It also has options of withdrawal for certain expenses related to home, marriage or medical. EPF contribution includes 12% of basic salary from employee and employer. It is distributed in ratio of 8.33:3.67 in Pension fund and Provident fund
Payment of life insurance premium. It is allowed on premium paid on self, spouse and children even if they are not dependent on father or mother.
Investment in pension Plans. National Pension Scheme is meant to save money for the post retirement which invests money in different combination of equity and debt. depending upon age up to 50% can go in equity. Annuity payable after retirement is dependent upon age. NPS has six fund managers. Individual can make minimum contribution of Rs6000/- . It has 22 point of purchase (banks).
Investment in Equity Linked Savings schemes (ELSS) of mutual funds. Among other investment opportunities, ELSS has the least lock-in period of 3 years. However, one should note that after the Direct Tax Code is in place, ELSS will no longer be an investment for 80C deduction.
Investment in National Savings Certificates (interest of past NSCs is reinvested every year and can be added to the Section 80 limit)
Tax saving Fixed Deposits provided by banks for a tenure of 5 years. Interest is also taxable.
Payments towards principal repayment of housing loans. Also any registration fee or stamp duty paid.
Payments towards tuition fees for children to any school or college or university or similar institution (Only for 2 children)
Post office investments
The investment can be from any source and not necessarily from income chargeable to tax.
Section 80CCF: Investment in Infrastructure Bonds From April, 1 2011, a maximum of ₹20,000 is deductible under section 80CCF provided that amount is invested in infrastructure bonds. This is in addition to the 100,000 deduction allowed under Section 80C. However this deduction has not been extended to Financial year 2012-13 .
Section 80D: Medical Insurance Premiums
Health insurance, popularly known as Mediclaim Policies, provides a deduction of up to 35,000.00 (₹15,000.00 for premium payments towards policies on self, spouse and children and ₹15,000.00 for premium payment towards non-senior citizen dependent parents or ₹20,000.00 for premium payment towards senior citizen dependent). This deduction is in addition to ₹1,00,000 savings under IT deductions clause 80C. For consideration under a senior citizen category, the incumbent's age should be 60 years during any part of the current fiscal, e.g. for the fiscal year 2010-11, the incumbent should already be 60 as on March 31, 2011), This deduction is also applicable to the cheques paid by proprietor firm.
Interest on Housing Loans Section
For self occupied properties, interest paid on a housing loan up to Rs 150,000 per year is exempt from tax. This deduction is in addition to the deductions under sections 80C, 80CCF and 80D. However, this is only applicable for a residence constructed within three financial years after the loan is taken and also the loan if taken after April 1, 1999.
If the house is not occupied due to employment, the house will be considered self occupied.
For let out properties, the entire interest paid is deductible under section 24 of the Income Tax act. However, the rent is to be shown as income from such properties. 30% of rent received and municipal taxes paid are available for deduction of tax.
The losses from all properties shall be allowed to be adjusted against salary income at the source itself. Therefore, refund claims of T.D.S. deducted in excess, on this count, will no more be necessary]
Section 80D: Medical Insurance Premiums
Health insurance, popularly known as Mediclaim Policies, provides a deduction of up to 35,000.00 (₹15,000.00 for premium payments towards policies on self, spouse and children and ₹15,000.00 for premium payment towards non-senior citizen dependent parents or ₹20,000.00 for premium payment towards senior citizen dependent). This deduction is in addition to ₹1,00,000 savings under IT deductions clause 80C. For consideration under a senior citizen category, the incumbent's age should be 60 years during any part of the current fiscal, e.g. for the fiscal year 2010-11, the incumbent should already be 60 as on March 31, 2011), This deduction is also applicable to the cheques paid by proprietor firm.
Interest on Housing Loans Section
For self occupied properties, interest paid on a housing loan up to Rs 150,000 per year is exempt from tax. This deduction is in addition to the deductions under sections 80C, 80CCF and 80D. However, this is only applicable for a residence constructed within three financial years after the loan is taken and also the loan if taken after April 1, 1999.
If the house is not occupied due to employment, the house will be considered self occupied.
For let out properties, the entire interest paid is deductible under section 24 of the Income Tax act. However, the rent is to be shown as income from such properties. 30% of rent received and municipal taxes paid are available for deduction of tax.
The losses from all properties shall be allowed to be adjusted against salary income at the source itself. Therefore, refund claims of T.D.S. deducted in excess, on this count, will no more be necessary]
Refund Status
State Bank of India (SBI) is the refund banker to the Indian Income Tax Department(ITD). Your tax refund details are sent to SBI, by the Income tax department. Then SBI will process the refund, and send you the refund intimation. While filing your return you can choose any one of the two Refund modes ECS or Paper(cheque). The refund status can be checked online at the NSDL site.
Corporate Income tax
For companies, income is taxed at a flat rate of 30% for Indian companies, with a 5% surcharge applied on the tax paid by companies with gross turnover over ₹1 crore (10 million). Foreign companies pay 40%.An education cess of 3% (on both the tax and the surcharge) are payable, yielding effective tax rates of 32.5% for domestic companies and 41.2% for foreign companies. From 2005-06, electronic filing of company returns is mandatory.
Tax Returns
There are five categories of Income Tax returns.
State Bank of India (SBI) is the refund banker to the Indian Income Tax Department(ITD). Your tax refund details are sent to SBI, by the Income tax department. Then SBI will process the refund, and send you the refund intimation. While filing your return you can choose any one of the two Refund modes ECS or Paper(cheque). The refund status can be checked online at the NSDL site.
Corporate Income tax
For companies, income is taxed at a flat rate of 30% for Indian companies, with a 5% surcharge applied on the tax paid by companies with gross turnover over ₹1 crore (10 million). Foreign companies pay 40%.An education cess of 3% (on both the tax and the surcharge) are payable, yielding effective tax rates of 32.5% for domestic companies and 41.2% for foreign companies. From 2005-06, electronic filing of company returns is mandatory.
Tax Returns
There are five categories of Income Tax returns.
1. Normal Return
2. Belated Return
3. Revised Return
4. Defective Return
5. Returns In Response To Notices
Normal Return
Returns filed within the return filing due date
Belated Return
In case of failure to file the return on or before the due date, belated return can be filed before the expiry of one year from the end of the relevant assessment year
Revised Return
In case of any omission or any wrong statement mentioned in the normal return can be revised at any time before the expiry of one year from the end of the relevant assessment year.
Defective Return
Assessing Officer considers that the return is defective, he may intimate the defect. Have to rectify the defect within a period of fifteen days from the date of such intimation.
Returns In Response To Notices
Assessing officer in the process of making assessment, may serve a notice under various sections like 142(1) , 148(1), 153A(a) or 153C. Returns are required to be furnished within the date specified on the respective notices.
Annual Information Return and Statements
Normal Return
Returns filed within the return filing due date
Belated Return
In case of failure to file the return on or before the due date, belated return can be filed before the expiry of one year from the end of the relevant assessment year
Revised Return
In case of any omission or any wrong statement mentioned in the normal return can be revised at any time before the expiry of one year from the end of the relevant assessment year.
Defective Return
Assessing Officer considers that the return is defective, he may intimate the defect. Have to rectify the defect within a period of fifteen days from the date of such intimation.
Returns In Response To Notices
Assessing officer in the process of making assessment, may serve a notice under various sections like 142(1) , 148(1), 153A(a) or 153C. Returns are required to be furnished within the date specified on the respective notices.
Annual Information Return and Statements
Annual Information Return
Those who is responsible for registering, or, maintaining books of account or other documents containing a record of any specified financial transaction[14], shall furnish an annual information return in Form No.61A.
Statements By Producers
Producers of a cinematographic film during the financial year shall, prepare and deliver to the Assessing Officer a statement in the Form No.52A,
§ within 30 days from the end of such financial year or
§ within 30 days from the date of the completion of the production of the film,
whichever is earlier.
Statements By Non-Resident Having A Liaison Office In India
With effect from 01,June 2011, Non-Resident having a liaison office in India shall prepare and deliver a statement in Form No. 49C to the Assessing Officer within sixty days from the end of such financial year.
Tax Penalties
The major number of penalties initiated every year as a ritual by I-T Authorities is under section 271(1)(c) which is for either concealment of income or for furnishing inaccurate particulars of income.
"If the Assessing Officer or the Commissioner (Appeals) or the Commissioner in the course of any proceedings under this Act, is satisfied that any person-
(b) has failed to comply with a notice under sub-section (1) of section 142 or sub-section (2) of section 143 or fails to comply with a direction issued under sub-section (2A) of section 142, or
(c) has concealed the particulars of his income or furnished inaccurate particulars of such income,
he may direct that such person shall pay by way of penalty,-
(ii) in the cases referred to in clause (b), in addition to any tax payable by him, a sum of ten thousand rupees for each such failure;
(iii) in the cases referred to in clause (c), in addition to any tax payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or the furnishing of inaccurate particulars of such income.
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