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GST – Goods and Services Tax Explained in Most Simple Words

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What is GST? GST or Goods and Services Tax is one of the largest indirect taxation reform in India. It was implemented on 1st July 2017 and aims at transparent tax regime. It is levied on most goods and services sold for domestic consumption. The purpose is to eliminate all indirect taxes and only GST would be levied on both goods and services. GST Benefits GST replaces various indirect taxes and makes it easier for the business people to pay taxes. GST puts an end to all other taxes that industrialists need to pay. Also, as GST filing is online and the whole process is transparent and easy. GST is a single indirect tax and ensures that there are no taxes on already taxed product. Thus, it reduces hidden costs involved in doing business. One is saved from “tax on tax” throughout the value chain. What are the components of GST? There are three taxes applicable: CGST : Collected by Central Government on intra-state sale: i.e. wi...
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Types of GST Returns and Their Due Dates

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Here are the details of GST Return Filing dates for all types of taxpayers who come under the preview of GST: For Normal Taxpayer: GSTR – 1: Return for details of outward supplies of goods or services Due date: 11th of next month GSTR-2: Return for details of inward supplies of goods or services Due date: 15th of next month GSTR -3: Return for summary of outward supplies and inward supplies along with payment of tax Due Date: 20th of next month GSTR- 3B: Return for summary of outward supplies and Input Tax Credit is declared and payment of tax is affected. Due Date: 20th of next month GSTR -9: Annual Return Due Date: 31st December of next financial year For Composition Taxpayer: GSTR – 4: Return for a taxpayer who is registered under the composition scheme Due Date: 18th of the month succeeding quarter GSTR – 9A: Annual return for a taxpayer who is registered under the composition scheme Due Date: 31st December of next...
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Aadhaar Card Now an Alternative to PAN Card for Filing Income Tax Returns

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Finance Minister Nirmala Sitharaman made PAN card and Aadhaar card interchangeable for filing your income tax returns. Do not have PAN Card and want to file income tax returns? You can file the returns by quoting Aadhaar number. The compulsory requirement of PAN card has been abolished to file income tax return. One can file the same via Aadhaar card as well. Nirmala Sitharaman said in her Budget speech, "More than 120 crore Indians now have Aadhaar card, therefore for ease of tax-payers, I propose to make PAN card and Aadhaar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhaar number. They would be able to use that wherever one is required to use PAN.” The Finance Minister said that once the proposal is received by the Parliament, green people will be able to use the Aadhaar card instead of the PAN card. Aadhaar card will now be used for financial transactions, procurement, and purchase. The work of PAN card ...
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Income Tax Return Filing: Key Changes in ITR-1 and ITR-2 Forms

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The income tax department has notified new Income Tax Return (ITR) forms for assessment year 2019-2020. Some changes have been made for Financial Year 2018-19 and onwards in ITR forms 1 and 2. These are the important changes that you need to know about: Online Filing ITR mandatory Paper filing is now only allowed for those who are above the age of 80 years. all others are required to e-file their returns. Property Transactions For all those who have sold a property in the financial year and are filing ITR-2, they are required to provide complete details of buyer to whom they have sold the property. If there is any rent arrear received in the financial year, you need to report them property wise. Also, one need to specifiy whether the house is self occupied, let out or deemed let out. Aadhaar Number Mandatory Aadhaar number has been made mandatory to quote in all the form.   Any ITR filed without mention of Aadhaar number will not be processed. Details...
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Income Tax Return Filing: Step to Step Guide

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July 31 is the last date for filing of Income Tax Returns  for the previous financial year of 2018-2019. You should keep your documents handy in advance to avoid any last minute hassles. If you file ITR after the deadline, you will need to pay late filing fees of up to Rs. 10000. Everyone is required to file ITRs digitally except for super senior citizens aging 80 years and above. They can file returns in paper format. Here is your simple and straightforward guide on how to e-file your ITR. 1. Collect all required Documents Firstly, you are required to collect all necessary documents for filing ITR such as Form 16, salary slips, TDS certificates and capital gains statements. Form 16 is the TDS certificate given by employer for the tax deducted from salary. Form 16A is for TDS deducted on interest payments. One can claim deduction under Section 80TTA for up to Rs. 10000 on interest earned from savings bank account held with bank or post office. Senior citizens can cla...
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Filing Income Tax Returns of Deceased Person

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Income tax return needs to be filed for the income earned by the person during the financial year. But, if case the person is deceased, the income tax needs to be filed by the legal heir/representative. What is the process for legal hair registration under Income Tax? How to file ITR of deceased individual? Get all answers here. Who is Legal Heir? Legal heir will be considered as assessee and is required to obtain legal heir certificate. Parents, spouse, siblings and children of the deceased person are considered as legal heirs. What are the documents required for registering as legal heir? Death certificate PAN card of deceased Pan card of legal heir Legal heir certificate An affidavit in presence of Notary public What can be considered as Legal Heir Certificate? Legal heir certificate issued by Court of Law and Local Revenue Authorities Certificate of existing family members issued by Local Revenue Authorities Registered W...
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Tax Exemption on Car Loan Interest

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Loans and tax deductions go hand by hand. Loans are a liability for any consumer but at the same time, some tax rebates are available for some loans. These range from education loans to car loans to home loans and personal loans. Today, we discuss about tax exemption available for car loan interest paid by you. Tax Exemption for Car or Auto Loans As cars come under luxury items and as such no tax benefits are available to the consumers who have purchased car or auto on loan. Thus, car loans availed by individual consumers do not get any tax benefit. However for commercial car, vehicle and equipment loans, tax deduction is available. Tax Exemption for Cars used for Business When you take out loan on a vehicle for use in your business, the interest you pay is considered as a business expense. This implies that you can claim tax deduction for the proportion of business use of the vehicle. When the vehicle is used only for business, the calculation is very easy. For exampl...
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