Tax Advisors

30/06/2018

Due date for filing Indian Tax return is 31st July 2018. File assisted income tax return today ...

Call @ 7890400605

07/02/2018

31st March is approaching, File your Belated income tax for FY 2016-17 before 31.03.2018

Feel free to contact me at+917890400605

15/06/2017

*Thumb Rule of Financial planning.*

1. 30 % of your income must be used for *monthly living expenses.*

2. 30% of your income must be used for *Liabilities repayments*, if any..

3. 30% of your income must be *SAVED* and *INVESTED* for your future LIVING.

4. 10% of your income must be spared for *entertainments, vacations*

5. 6 months expenses must be available for *emergency fund* (should be invested in LIQUID FUND, FD Etc)

6. *Home loan* must be registered and apply on both *husband and wife name.* (Both can get benefits on Home loan Tax benefits)

7. Buying *second house for investment is not advisable* ( _Survey reports - it will fetch you only around 3% return_)

8. After 45 years of age, *not supposed to enter into any BIG LIABILITIES* (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.)

9. Have joint account @ Bank savings account.

10. Property must be *registered on both Husband and wife name*. (As per legal act – after husband first legal heir is wife, after wife it will go to children only)

11. Regular check on *Nominations at all financial instruments.* if not nominated, do it now..

12. Only in insurance policy, Claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement

13. Must have *Term Insurance* to financially secure future of your dependants.. *Conventional Insurance products* can serve as Debt oriented investments and provide assured returns in the present falling interest regime with Tax benefits.

14. *Don’t take any financial investment decisions EMOTIONALLY*, and also Avoid last minute tax saving investment decisions, plan well in advance..

15. *MEDICLAIM is must* (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into mediclaim)

16. For your *jewelry LOCKER*, Only one lakh is payable by bank, if theft or fire happen at bank. Provided insurance done.

17. Like same way *Government guaranteed only one lakh for your FD* also. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance)

18. Must know all *Tax implications.* You cannot avoid paying tax. But you can minimize by way of tax planning and investments..

19. All *financial documents must be kept safely* and keep family members informed of the same..

20. *Financial investments* must be followed through *personal financial advisor..*

21. *Review your portfolio at every six month..*

These are general suggestions, personal Finance and investment decisions depends upon case to case_

*Have a Healthy and Wealthy F.Y. 2017-18.*

09/05/2017

"Supreme Court upholds disallowance of expenditure incurred in relation to exempt dividend income"

This Tax Alert summarizes a recent Supreme Court (SC) ruling in the case of Godrej and
Boyce Manufacturing Co. Ltd. (Taxpayer) where the issue before the SC was whether the
disallowance under Section (s.) 14A of the Indian Tax Laws (ITL) would apply on
expenditure incurred for earning exempt dividend income on which Dividend Distribution Tax (DDT) is paid by the dividend paying company. The SC held that, on principles, s.14A disallowance applies to dividend income since it is exempt from tax in the hands of shareholder although it suffers DDT in the hands of dividend paying company. Furthermore, this position emerges from a plain and literal reading of s.14A which is consistent with the scheme of the ITL and the legislative object of introduction of this provision.

However, the SC also held that the disallowance is triggered only if there is proof that the
expenditure sought to be disallowed has actually been incurred in earning exempt dividend income. Before applying s.14A, the Tax Authority should be satisfied that having regard to the accounts of the taxpayer, the taxpayer’s claim is not correct. In the facts of the present case, the Tax Authority had failed to establish a reasonable nexus between interest expenditure sought to be disallowed and exempt dividend income. Moreover, the Tax
Authority had accepted in earlier years’ litigation that the investments yielding exempt
income were not made from borrowed funds. There being no change in the facts or law in
the current year, the SC held that the Tax Authority was not justified in departing from a
settled position of earlier years.

08/05/2017

Benefits to Senior Citizens and Super Senior Citizens under income Tax Act

08/05/2017

Points to be remembers while calculating income under House Property

08/05/2017

Summary of income which are chargeable under Other Sources

03/05/2017

Deductions available in addition to section 80C..

30/04/2017

What is AMT?

As per section 115JC of Income Tax Act , 1961 , AMT is Alternate Minimum Tax computed on the adjusted total income of a non corporate assessee.

Need For AMT?

AMT is introduced in the Act, to reach and collect minimum taxes from the Non Corporate Assessees who are claiming certain profit linked deductions. AMT is payable when Tax as per normal provisions is less than Alternate Minimum Tax on Adjusted Total Income.

Applicability:

1. The primary condition for applicability of AMT is that the assessee should be Non Corporate.

2. Such assessee should have claimed deduction under

chapter VI heading C ( Deductions in respect of certain incomes except u/s 80P) or
under section 10AA ( Profit derived by SEZ Units) or
Section 35AD ( Deduction for expense on specified business)
Non Applicability:

AMT is not applicable if:

1. The Assessee is a corporate assessee

2. The Assessee is an Individual, HUF, AOP, BOI (whether incorporated or not ),Artificial Judicial Person and its Adjusted Total Income does not exceed Rs 20 Lakhs .

Hence, it can be said that AMT is applicable to Individual , HUF, AOP . BOI, Artificial Judicial Person, only if two conditions are satisfied:
It has claimed deductions under sections (10AA/ 35AD/ Chapter VI heading C)
AND,

The Adjusted Total Income exceeds Rs 20 Lakhs.
In all other cases, ( LLP, Partnership Firms , other Non Corporate Assesses) the relief of 20 Lakhs is not available.

Rate of AMT for AY 2017-18 is 18.5 % which is increased by surcharge and Education & Secondary Higher Education Cess, as the case may be.

Credit and Carry Forward

AMT is payable if the normal tax liability is less than the AMT liability ( AMT > Normal Tax).

If in any year AMT is payable then the difference between the Normal Tax Payable and AMT paid is allowed as AMT Credit and can be adjusted with normal tax liability in subsequent/ future year in which the normal income tax payable exceeds the AMT . AMT Credit can be carried forward upto 10 years.

Some Key Points:

Save as otherwise provided in this Chapter, all other provisions of this Act shall apply to a non-corporate referred to in this Chapter. Hence, all other provisions relating to Advance tax, interest under sections 234A, 234B and 234C penalty, etc. shall apply to such non-corporate also.
section 115JC lays down that an assessee liable to AMT should obtain a report in a prescribed format from an Chartered Accountant, certifying that the adjusted total income and the alternate minimum tax have been computed in accordance with the provisions of Chapter XIIBA and furnish the same on or before the due date of filing of the return u/s. 139(1).
MAT Credit of Company is not allowed to be carried forward in the hands of LLP on conversion of Company into LLP.
Deductions u/s 80 C to 80GGc,80 U and 80P are not to be added back in calculation of Adjusted Total In
Even if in any subsequent year the chapter of 115JC is not applicable, the assessee can claim credit in such previous year.

29/04/2017

What is FATCA and why is there a big fuss now?

FATCA enables automatic exchange of financial information between India and the US. Indian financial institutions have to provide necessary information to Indian tax authorities, which will then be transmitted to the US. The inter-governmental agreement (IGA) with the US for implementing FATCA came into effect on August 31, 2015. Financial institutions were told to obtain self-certification and carry out due diligence procedure to determine the reasonableness of the self-certification in respect of all individual and entity accounts opened from July 1, 2014 to August 31, 2015.

If I don't get it done now, what could I face?

a) For bank account holders
If you are a bank account holder and if you haven't given a self-certification till 30 April 2017, your account could be frozen, which would mean that the financial institution would prohibit the account holder from effecting any transaction with respect to such accounts.
Investors and account holders have to provide a self-certification about 'tax residency' to their respective financial institutions for compliance with FATCA failing which the account will be blocked.

b) For NPS account holders

If you have opened a National Pension System (NPS) account on or after July 1, 2014 and it is being maintained with NSDL as Central Recordkeeping Agency for NPS, it will also get blocked unless you have submitted a self-certification of FATCA.

You may have got an email, sms to download the self-certification form and submit the duly filled up physical self-certification (along with documentary evidence) to NSDL-CRA with signature.

Copy and paste this link for help:

https://www.npscra.nsdl.co.in/download/pdf/FATCA%20Self%20Declaration%20Format.pdf

c) For mutual fund investors

As per a Finance ministry release issued on April 11, 2017, all accounts/Folios with mutual funds, opened between July 1, 2014 and August 31, 2015 , must be FATCA compliant by April 30th, 2017.

In case of non-compliance by this date these accounts will be blocked i.e. no financial transactions will be allowed in such non-compliant accounts after April 30, 2017. Financial transactions, such as purchase, redemption, will be allowed only after these accounts become FATCA compliant.

One can copy and paste the following links of the registrars of the mutual funds to update one's details.

1. CAMS: http://www.camsonline.com/FATCA/COL_FATCAOnlineIndividualForm.aspx?amc=ALL

2. KARVY: https://www.karvymfs.com/karvy/fatca-kyc.aspx

3.Sundaram BNP Paribas Fund Services Limited; https://www.sundarambnpparibasfs.in/web/service/fatca/

4.Templeton: https://online.franklintempletonindia.com/aspx_app/Investors/fatca/Inv_FatcaDetails.asps

What all do I need to submit for this?
FATCA compliance simply requires a declaration giving information such as your PAN details, country of birth, country of residence, Nationality, Occupation, Gross Annual Income, and details of whether you're a politically exposed person. It is a mandatory exercise for both Individual and Non-Individual Investors. If you have been paying taxes in any country apart from India, you need to provide the tax identification number.

Mutual fund investors, bank account holders and those who have invested in insurance schemes may face freeze if they don't comply.
Have you got your account FATCA (foreign account tax compliance act) compliant? If you haven't then Monday could be a problem for you. Mutual fund investors, bank account holders and those who have invested in insurance schemes cannot operate their accounts, which were opened between July 1, 2014 and August 31, 2015, from May 1 if they are not compliant with FATCA

26/04/2017

10/04/2017

WAITING FOR YOUR INCOME TAX REFUNDS?

Complying with tax laws and paying taxes may be good for our soul, but receiving a refund brings true happiness.

Before you waste precious time logging into your bank account to check for refund, make sure that your return was ‘e-filed’. The tax department mandated that returns with refunds (starting financial year 2014-15) must only be e-filed. Paper returns with refund are not accepted unless you are more than 80 years old and you are filing ITR-1 or ITR-2. All other returns must be e-filed where income is more than Rs 5lakhs and/or a refund is being claimed.

You can check the status of your refund here. You’ll need your PAN number, then choose assessment year 2015-16 (if you are checking for refund status for return filed for income earned in 2014-15). And mention your date of birth as well as your email address.

If your refund is under process, you can check a few things to make sure your refund is processed timely –

Make sure you have verified your tax return. Refunds are only processed once a return has been verified. You can also e-verify your tax return. E-verification can only be done via net banking for refund seekers. Or you can send the physical ITR-V the good old way.


Do check that you have mentioned your account number where you want to receive refund correctly. It must have atleast 10 digits. Check if your IFSC code is correct, as well as the name of the bank has been mentioned properly. In case of change in ‘Bank Account details’ OR ‘Address Details’, a Rectification should NOT be filed. You can login to www.incometaxindiaefiling.gov.in and go to My Account –> Refund Re-issue request and raise a request for change in the Bank Account/Address details (in case of refund failure).


Check your email for a communication from the income tax department. It could be possible that an error has been detected in your tax return, which usually results in an intimation under section 143(1). In this notice the department, puts a value against all the values in your return and recalculates your taxes. You can quickly look up the discrepancies. There could be several reasons for a mismatch. Your TDS may have been not have been allowed to be adjusted. Or there could be a deduction which exceeds specified limit or some other apparent error. Usually, intimations under section 143(1) are all computer generated. You’ll have to take suitable action per the notice, which may be paying up tax dues or filing a rectification.
We’ve heard from a lot of our customers that the Income Tax Department has been processing refunds in 10-12 days – hope your refund is on its way too! 🙂

Quoting of Aadhaar / Enrolment ID of Aadhaar application form is made mandatory for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July, 2017. For details.