Volume 2016-1 (Highlights of latest changes)

May 2016

Inside This Issue Upcoming Deadlines Income Tax Changes Income Tax Exemptions/ Rebates TDS & TCS Changes PAN Quoting in all Documents wef 01.01.2016 AIR (Annual Information Return) Other Changes JPACA News 30th May Income Tax - TDS/ TCS Certificates Issuance - Last Year 6th Jun Excise Duty / Service Tax e-Payment 7th Jun Income Tax - TDS/ TCS Payment 15th Jun EPF Payment (Grace period removed from EPF Payment for Jan 2016 onwards) 20th Jun UP VAT Return 21st Jun ESIC Payment Income Tax Changes Top Interest Deduction for Self-occupied Properties [Sec 24] Deduction for interest on Self-occupied Property upto Rs 2 lacs, only if construction is completed in 5 years from end of F.Y. in which capital is borrowed Presumptive Profit @8% u/s 44AD Limit increased to Rs 2 crores In case of firms, 8% net profit shall be taken after partner's salary and interest. If once opted out of presumptive taxation ie 8%, then cannot avail benefit for next 5 years. Presumptive Professional Income u/s 44ADA Applicable for receipts upto Rs 50 lacs and declaring net profit more than 50% Audit/Accounts for Professionals Professionals opting for Sec. 44ADA not required to maintain Books or get Audit done Amendment in Sec 50C Stamp duty value as on date of agreement shall be applicable similar to proviso u/s 44CA Advance tax Now all assesses have to pay advance tax in 4 instalments starting 15 June Adjustment u/s 143(1) Now ITR filed shall be adjusted automatically by CPC, Bangalore on basis of incomes reflected in Form 26AS. Income Tax Exemptions/ Rebates Top Start-up - Capital Gains [Sec 54GB] Capital Gains on sale of Residential House or Residential plot of land and net consideration invested in eligible start-up company, shall be exempt Deduction for rent paid [Sec 80GG] Deduction of rent upto Rs 5,000 pm / 25% of total income / rent paid in excess of 10% of total income is allowed for rent paid for residence if no HRA received. Start-up - Exemption [Sec 80IAC] Profits of start-up exempt for 3 years out of first 5 years, if conditions fulfilled. Affordable Housing [Sec 80IBA] Profits of affordable housing project are exempt, if project completed in 3 years of approval, if conditions fulfilled. Rebate [Sec 87A] If income upto Rs 5 lacs of resident individual, rebate upto Rs 5000 is available. TDS & TCS Changes Top Changes in TDS provisions wef 01.06.2016 Limits, Rates & Deadlines rationalised Declaration by employees Form 12BB Employers to accept exemptions/ deductions of employees for purpose of TDS on Salary, only if details e-filed in Form 12BB by employees Declaration u/s 197A for non deduction of TDS Extended for rent payments covered u/s 194I TCS on Sale of Vehicles 1% where sale value exceeds Rs 10 lacs TCS on Sales of any Goods/Services 1% where sale value exceeds Rs 2 lacs and any amount is received in cash PAN Quoting in all Documents wef 01.01.2016 Top Purchaser's/Seller's PAN Sale/Purchase any goods / services > Rs 2 lacs per transaction. Purchaser's/Seller's PAN Cash Sales/Service by Hotel / Travel Agent > Rs 50,000 per transaction. Purchaser's/Seller's PAN Sale or purchase of Motor Vehicle (other than two wheeler) per vehicle. Purchaser's/Seller's PAN Sale or purchase of Unlisted Shares by any person > Rs 1 lac per transaction. Purchaser's/Seller's PAN Sale or purchase of Immovable Property > Rs 10 lacs. Verification of Purchaser's PAN In all above transactions - Seller to verify Purchaser's PAN before quoting. PAN Requirements Beside above transactions - Banking / Demat / Insurance transactions extensively covered in Rule 114B & 114C & 114D. PAN not applied Declaration in Form 60 to be taken and retained for 6 years from end of F.Y. E-filing of Declaration received in Form 60 Form 61 to be e-filed to Income Tax Department (Intelligence and Criminal Investigation Wing) for all Form 60 Declaration received upto 30th Sep by 31st Oct and Declaration received upto 31st Mar by 30th Apr [ie. first Form 61 to be e-filed by 30.04.2016] AIR (Annual Information Return) Top AIR made more effective AIR Information now covers many transactions extensively wef. 1.4.2016 and details to be e-filed to Income Tax Department (Intelligence & Criminal Investigation Wing). Company to file AIR in Form 61A For receipts of Rs 10 lacs or more in a F.Y. for issuance of shares Tax Audit Cases also to file Form 61A For cash receipts above Rs 2 lacs towards Sales of any Goods/Services e-Filing Deadline Form 61A is to be filed on or before 31st May after end of each F.Y. [ie. first Form 61A to be e-filed by 31.05.2017] Other Changes Top Krishi Kalyan Cess of 0.5% Service Tax effective rate shall be 15% wef 01.06.2016 and KKC is to be charged separately [ie. 14% + 0.5% SB Cess + 0.5% KCC, all three separately in bills] Income Disclosure Scheme, 2016 Income Disclosure Scheme has been introduced @ 45% total tax wef 1.6.2016 to 30.9.2016 Dispute Resolution Scheme Dispute Resolution Schemes has been introduced wef 1.6.2016 for both direct and indirect taxes for disputes as on 1.3.2016 JPACA News Top Editorial Board (Patron - CA J P Agarwal) Editor - CA Vishal Agarwal J P Associates has shifted its head office to Civil Lines Office and converted its Sipri Office into its branch. CA Kailash Chandra Goyal and CA Anchit Agrawal have joined J P Associates Disclaimer Statement: Click Here Visit Our Website: http://www.jpaca.com Contact Us: email@jpaca.com To unsubscribe from e-Newsletter mail listing: Click Here Head Office: JPACA House, 725, Civil Lines, Jhansi – 284 001 (UP) Ph: 91-510-2371572 Branch: J P Associates Campus, Prem Ganj, Sipri, Jhansi – 284 003 (UP) Ph: 91-510-2360085