Payroll and Compliance - The Monthly Chronicle
ADP India brings to you this special edition of the newsletter - on Income Tax Return Filing
ADP India brings to you this special edition of the newsletter - on Income Tax Return Filing
We don’t want to make any mistake in filing our income tax returns. Any mistake or misrepresentation may lead to income tax notice and scrutiny. Thus, to help you file better, ADP conducted a webinar on 27 June, on the best practices to follow while filing your income tax returns. The webinar recording can be viewed below:
There have been a few changes in ITR for this year. They have been summarised as follows:
ADP is a payroll processing company, and part of our work is to help our clients with their payroll processing, filing of tax returns and issuing of Form 16. During the process, especially at this time of the year, there are many queries that we encounter and solve on a daily basis. Here is a list of the most asked questions on the topic of tax return filing:
1. Is there any reason why Part A gross is not matching with Part B gross income in my Form 16?
A few reasons for the variance are:
2. The Income Tax portal is showing this message: ‘The amount of salary disclosed in Income details / Part B is less than 90% of salary reported in TDS.’
The above alert gets triggered only if the Part B salary is less than 90% of Part A salary. The Part B salary figure entered in the return utility is after Section 10 exemptions (such as the House Rent Allowance and other allowance exemption) and hence the figure cannot be equal to the Part A figure unless there is zero Section 10 exemptions and at times the variance would be more than 10% to trigger 90% difference alert. Thus if you see this message and all details entered by you is correct then you can go ahead and file your ITR.
3. What if I have missed adding investments to my claim while submitting proof for Form 16 generation?
You can show your investments while filing your individual return to the income tax department. In general, you might get a notice to provide details for the difference in tax computation. You will need to maintain the original proofs, and submit these as and when they are asked for.
4. What is Form 26AS and is it important to check it before filing the return?
Form 26AS is a consolidated tax statement for all income and taxes deducted for the year. It’s always better to refer to your Form 26AS before filing your returns, so you can validate all incomes and taxes deducted by all deductors. You will thus minimise chances of making mistakes while filing your income tax return.
To check your Form 26AS, follow these steps:
5. What is the penalty or interest one needs to pay if one fails to file income tax return?
If the return is filed after the due date but on or before the 31st day of December of the assessment year, the penalty under Section 234F would be ₹ 5,000
If return is filed after the 31st day of December of the assessment year, the penalty under Section 234F would be ₹ 10,000 Note: If the total income of the person does not exceed Rs. five lakh, then the penalty payable would be ₹1,000.
Also, under Sections 234A, 234B and 234C of the Income Tax Act, the following interest would be payable:
234A | Late filling of return | 1% pm of net tax liablity |
234B | Non payment of advance tax | 1% pm of net tax liablity |
234c | Deferement of advance tax | 1% pm of net tax liablity |
Due Date: | 31st July 2018 |
ITR to file: | ITR 1, ITR 2 or ITR 3 |
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Due date | Nature of transaction | Existing rules | Mode |
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10th July 18 | Andhra Pradesh & Madhya Pradesh | State-wise regulations | By Challan |
15th July 18 | Gujarat | Gujarat PT regulations | By Challan |
20th July 18 | Karnataka | Karnataka PT regulations | By Challan & Online |
21st July 18 | West Bengal | West Bengal PT regulations | By Challan |
31st July 18 | Assam & Orissa | State-wise regulations | By Challan |
31st July 18 | Maharashtra | Maharashtra PT regulations | Online |
PF Central | |||
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15th July 18 | Remittance of Contribution | EPF & MP Act, 1952 | Online |
ESI Central | |||
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15th July 18 | Remittance of Contribution (Main code and Sub codes) | ESIC Act, 1948 | Online |
TDS | |||
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7th July 18 | TDS Payment for May 18 | Income Tax Act, 1961 | Online |
31st July 18 | Q1 TDS return for FY 2018-19 | Income Tax Act, 1961 | Online |
31st July 18 | Individual Income tax return filing for AY 2018-19 | Income Tax Act, 1961 | Online |
Labour Welfare Fund Remittances | |||
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5th July 18 | Kerala (Labour Welfare Fund Act) | Kerala State Labour Welfare Fund | Offline |
31st July - 1st Half yearly | Chattisgarh | ChattisgarhLabour Welfare Fund | Offline |
15th July - 1st Half yearly | Delhi | DelhiLabour Welfare Fund | Offline |
31st July - 1st Half yearly | Goa | GoaLabour Welfare Fund | Offline |
31st July - 1st Half yearly | Daman & Diu | Daman & DiuLabour Welfare Fund | Offline |
15th July - 1st Half yearly | Gujarat | GujaratLabour Welfare Fund | Offline |
31st July - 1st Half yearly | Madhya Pradesh | Madhya PradeshLabour Welfare Fund | Offline |
15th July - 1st Half yearly | Maharashtra | MaharashtraLabour Welfare Fund | Offline |
15thJuly - 1st Half yearly | West Bengal | West Bengal Labour Welfare Fund | Offline |
Sources: Government Notifications, Circulars, Press releases.
Disclaimer
The information provided herein is general and not intended as legal, regulatory, tax or accounting advice and you should obtain your own independent advice regarding the matters dealt with herein. ADP assumes no liability or responsibility for any errors or omissions in the content of this document or publication and for your use of any information provided. The information contained in this document is provided “as is” without warranty of any kind, either express or implied, including without warranties of merchantability or fitness for a particular purpose, and non-infringement. All materials contained in this are protected by copyright laws, and may not be reproduced, republished, distributed, transmitted, displayed, broadcast or otherwise exploited in any manner without the express prior written permission of ADP. ADP’s names and logos and all related trademarks and other intellectual property are the property of ADP and cannot be used without its express prior written permission.
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