Taxpayers should register themselves on the incometax.gov.in i.e Income Tax Portal, since you can access documents, communications with the ITD etc.
Once you have registered yourself on the Income Tax Portal, you might have some updates such as email id, contact number, address, etc.
Steps to Edit Profile Details on incometax.gov.in
Login to the incometax.gov.in
Log on to the income tax portal using your PAN/Aadhaar and OTP/Password. Navigate to ‘My profile’ tab
Edit and Update the contact details
You will be redirected to the Profile section. Click on Edit and update the necessary details.
What happens if I don’t register on the incometaxefiling platform?
The user cannot e-file the Income Tax Return without registering on the portal. Also, services like Viewing 26AS Statement, status of Income Tax Return, File Rectification, Refund re-issue request, etc, cannot be availed.
Will my account get locked if I enter an incorrect password?
Yes, the account will get locked after entering 5 unsuccessful passwords. The account can be unlocked by contacting the helpline number.
Using the e-campaign tab of the compliance portal, the Income Tax Department seeks feedback on these data points from the taxpayer. The ITD usually contacts the taxpayer via e-Mails, SMS, phone calls, notices, and letters to visit the compliance portal and submit the response against the identified issue.
Certain transactions reported to the Income Tax Department (ITD), in an FY, are displayed to the taxpayer for a confirmation response. These transactions are considered not in line with the profile of the taxpayer based on pre-defined rules. The options of feedback are mentioned under the e-Campaign option under the Compliance Portal home page.
Steps to access and submit a response on e-compliance portal
Login to Income Tax Portal
Login to incometax.gov.in using your PAN/Aadhaar and OTP/password. Navigate to ‘Pending Actions’ > ‘Compliance Portal’ > Select the relevant e-campaign
Select the relevant e-campaign
Choose the relevant e-campaign and click on ‘Provide Feedback in AIS’
Select the Information Category
The information for which you would have received communication would be marked as with an ‘e’.
Select the Transactions
The transactions for which the feedback is required would be marked as ‘Expected’
Select the Response and Submit
Based on your response, select the most appropriate option from the following – Information is correct – Income is not taxable – Information is not fully correct – Information relates to other PAN/year – Information is duplicate/included in other displayed information – Information is denied
You can view the notice and post a reply in the section “View and Submit Compliance.” Under the ‘View and Submit Compliance’ tab, you will find a “Filing of Income Tax return” option through which you can provide the response related to ITRs. You can either choose: ‘ITR has been filed’ or ‘ITR has not been filed’.
What happens if I don’t respond to the notice within 30 days?
In case, no response is received within 30 days of the issue of this intimation, the return of income will be processed after making necessary adjustment(s) u/s 143(1)(a) of Income Tax Act, 1961 without providing any further opportunities in this matter.
Step 2: Select the Statement Type, Date and Portfolio Listing.
Step 3: You will receive the statement on your registered email address within 1-2 working hours.
Option 2: KARVY
Step 1: KARVY Online Visit the KARVY investor mailback service for the capital gains website.
Step 2: After KARVY Login After logging in, scroll down and click on the Investor Service tab.
Step 3: Capital Gain Mail Option Moreover, click on the capital gain by mail option.
Step 4: Enter the required details Enter the e-mail ID registered in your investment folios. Password – This is the password for opening the attachment. You can set it to anything you want. Choose 1st April 2018 from the date picker and for To Date chooses 31st March 2019 to get the Capital Gains statement for the previous Financial Year.
The Equalization Levy was introduced in India in 2016. The intention was to tax digital transactions of non-resident companies.
This was just a start by the government to tax companies that don’t have a physical presence in India. Most companies have created headquarters in Tax havens. And thus have avoided taxation in countries like India for many years now.
The recent update levies a 2% tax on e-commerce sales by any non-resident company targeting residents of India. It boosts tax revenue and also evens out the playing field for local businesses; that are liable to pay taxes in India due to their physical presence in the country.
6% Equalization Levy on Online Advertising Revenue made in India
Any advertising services sold in India by a non-resident company will attract a 6% levy. The payer needs to deduct this amount before making payment to the advertisement company.
*Only applicable if the cost of the advertising services exceeds INR 1,00,000 in one financial year
Google: A non resident online advertising company
Aishwarya: An Indian Resident
If Aishwarya buys Google Ads for INR 2,00,000 what is the levy applicable?
Aishwarya will have to deduct 6% of the INR 2,00,000 before making payment to Google for their advertisement services. Aishwarya will pay Google INR. 1,88,000 & deposit INR. 12,000 with the government as part of the equalization levy.
2% Equalization Levy on non-resident E-commerce platforms selling in India
Any non-resident e-commerce platform supplying goods or services to persons in India is now liable to pay a 2% tax on this income. The company needs to pay 2% of their entire turnover to the Government if it exceeds INR 2 crore.
Now the question arises about an e-commerce company undertaking advertising activities in India. Does it fall under the 2% slab or 6%?
The Government has clarified saying any e-commerce company if participating in online advertising will fall under the 6% slab. They will not enjoy the benefits of their 2% levy as in the case of the goods & services they provide.
Amazon: A non-resident e-commerce platform
Amazon has made an e-commerce sale of INR 50 crores of goods and services in the Indian market. So, Amazon will pay INR 1 Cr (2%) to the Indian Government as part of the equalization levy thus earning INR 49 Cr.
Earlier Amazon would keep the full INR 50 Cr as revenue & not pay any taxes in India.
TDS U/S 194O is deducted on any sale made in India
Apart from the equalization levy, TDS at 1% Section 194O is also applicable to non-resident companies. In the case of Equalization Levy, the Non-Resident Company bears the tax burden (of 2%); while in the case of TDS u/s 194O, the Non-Resident E-Commerce Operator deducts TDS from the payment made to the Resident e-commerce participant (seller) and deposits it with the government. TDS is on the gross amount (exclusive of GST).
Airbnb: Non-resident company
Yatrik: An Indian Resident
Airbnb collects payments for all houses listed on its platform; after deducting their commission of 10% they pay the homeowner.
Yatrik has a house listing for INR 10,000(exclusive of GST) per night on Airbnb. It has been rented out for one night, then what is the amount Airbnb needs to pay to him?
Airbnb has to deduct INR 100 as TDS & INR 1000 as commission; the final amount paid to Yatrik would be INR 8,900. Airbnb then has to deposit this TDS of INR 100 with the Indian Government against Yatrik’s PAN number.
If it was a resident company, TDS is required to be deducted only if annual sales exceed INR 5,00,000 in the financial year.
Note: If Yatrik does not provide PAN or Aadhaar this TDS is deducted at the rate of 5%. The TDS is deducted before GST.
Aadhar Paperless Offline e-KYC is secure and shareable document used for offline verification of identification. Any Aadhar number holder can download the digitally signed XML downloaded from UIDAI website.
The process for downloading Aadhaar Offline e-KYC is as follows:
Navigate to Unique Identification Authority of India.
To understand your trading activity and for its income tax compliance, you need documents like Tax P&L, Contract Note, Ledger / Account Statement. Hence, before you get any of these documents you need to create your ICICIDirect Account and Login .
How does the Tax profit and Loss Statement help me?
This statement is used to calculate your Tax liability. Therefore, it is needed to file ITR 3.
Will I continue to receive physical contract notes?
ICICI Direct would send a consolidated physical statement for the transactions during the quarter. This statement will be designed in a user friendly manner and will be sent to you physically every quarter.
What is ICICI 3 in 1 account?
3 in 1 account at ICICI refers to as an Individual opening a Bank account, Demat account and Trading account simultaneously with the same bank.
Once you close your Scripbox account, you cannot re-activate it. You will have to create a new account on Scripbox in order to start investing again.
Is there a minimum withdrawal criteria in Mutual Fund Companies?
Yes, Mutual Fund Companies do have minimum requirements for withdrawal. If withdrawing by amount, you need to withdraw atleast Rs 1000. While, a minimum of 50 units is required when withdrawing by units.
Can I invest in Mutual Funds without a Demat Account?
Yes, Demat Account is not required for investing in Mutual Funds.
To understand your trading activity and for its income tax compliance, you need documents like Tax P&L, Contract Note, Ledger / Account Statement. Before you get any of these documents you need to login to your Upstox pro account. In case you forgot your Upstox login password you can reset it.
If you forgot your 6 – 12 character Upstox pro password, you have an option to login to reset the password. After 3 consecutive failed attempts to login to your Upstox account, your account will be blocked. In order to unblock your account, you can log in reset your password using the forgot password link. To Reset your Upstox pro password you will need:
How to Download Contract Note from Upstox Backoffice?
Upstox sends its traders a contract note for all transactions executed on the stock exchange. You can now download Contract Note for Upstox Traders. Contract Note is a legal obligation of every stockbroker
What are the documents required from my Upstox account to file Income Tax Return?
To file your ITR with the trading activity you need to provide Profit and Loss statement and Account Statement in your Upstox account.
Which document will have my Upstox Trading Turnover?
Trading Turnover will be used to determine your income tax audit applicability. You can find your Trading Turnover under the Tax Profit and Loss statement.
What is the duration I need to select to download documents from Upstox for ITR filing?
You will need the statements for the financial year in which you do the trading. The financial year begins on 1st April and ends on 31st March. It is the year in which you earn the income / undertake the financial activity like trading. For eg: if you are filing the ITR for FY 2019-20, you need statements from 1st April 2019 to 31st March 2020.
Is Trading Turnover same as Contract Turnover?
No. Contract Turnover is the sum of the purchase value and sales value. It is not applicable for income tax purposes. Trading Turnover or Business Turnover is the absolute profit i.e. sum of positive and negative differences. This turnover is to determine the applicability of the tax audit and the applicable ITR form. Therefore, Trading Turnover is different from Contract Turnover.
Chaired by: Union Finance Minister Nirmala Sitharaman
The 42nd Meet was supposed to be focused around the compensation to states and if the Centre and State will reach a consensus. Although there was no consensus, there are a few very important decisions and amendments that have taken place. These include relief to small taxpayers and enhancement of features of return filing.
On the issue of releasing compensation to states:
No consensus: Instead, the centre will disburse a sum of INR 20k to states. It is this year’s total collection. By next week, a sum of about INR 25k crore will be disbursed towards IGST of 2017-18.
States may borrow more: COVID effected gap will now be calculated at INR 1.10 lakh crore instead of the previously determined INR 97k crore.
Extension of compensation cess levy: The GST was introduced in July 2017. States were promised a 14% incremental revenue over the last tax receipts in the first 5 years of GST rollout. This was to be done through a levy of cess or surcharge on luxury and sin goods. The collections have fallen short owing to the slowdown in the economy since the last Financial Year. To make up for this, the Centre will now borrow against future compensation receipts. The Council will extend the compensation cess levy beyond 5 years i.e. beyond 2022.
Surcharge on luxury goods like cars and tobacco products varies from 12% to 200% on top of the highest GST rate of 28%. It is now due to expire in 2022.
The cess collected beyond 5 years will pay the amount beyond INR 1.10 lakh crore.
The cess that will be collected beyond 5 years will have a first charge on interest. The next charge will be 50% towards the principal amount and the remaining 50% will be given to states (COVID affected compensation).
HSN Code mandatory from 1st April: Taxpayers with annual turnover more than 5 cr will have to provide HSN code up to 6 digits and small taxpayers will have to provide HSN code up to 4 digits from April 1.
Relief to small taxpayers: Taxpayers with an annual turnover of less than 5cr will not be required to file returns (GSTR-3B and GSTR-1). They will only file quarterly returns. Also, this will come into effect from 1st January 2021.
It was emphasized that the number of returns of small taxpayers will be reduced from 24 to 8.
Small taxpayers can pay about 35 percent taxes of the previous quarter and make the final payment in the last month of the quarter.
PAN/Aadhar mandatory: Refunds will be transferred only in those bank accounts which are pan, Aadhar verified.
To encourage the domestic launching of satellites particularly by young start-ups, satellite launch services by ISRO and Antrix at 18% GST will be exempt.
Enhancement of features of return filing: In its 39th Meeting held in March 2020, the Council had recommended an incremental approach to incorporate features of the new return system in the present familiar GSTR-1/3B scheme. Various enhancements have since been made available on the GST Common Portal. To further enhance Ease of Doing Business and improve the compliance experience, the Council has approved the future roadmap for return filing under GST. The approved framework aims to simplify return filing and further reduce the taxpayer’s compliance burden in this regard significantly, such that the timely furnishing of details of outward supplies (GSTR-1) by a taxpayer and his suppliers would –(i) allow him to view the ITC available in his electronic credit ledger from all sources i.e. domestic supplies, imports, and payments on reverse charge, etc. before the due date for payment of tax, and (ii) enable the system to auto-populate return (GSTR-3B)through the data filed by the taxpayer and all his suppliers. In other words, the timely filing of the GSTR-1 statement alone would be sufficient as the return in FORM GSTR-3B would get auto prepared on the common portal. To this end the Council recommended/decided the following:
Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarterw.e.f. 01.1.2021.
Roadmap for auto-generation of GSTR-3B from GSTR-1s
Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021; and
Auto-population of the input tax credit from suppliers’ GSTR-1s through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021
To ensure the auto-population of ITC and liability in GSTR 3B as detailed above, FORM GSTR 1would be mandatorily required to be filed before FORM GSTR3B w.e.f. 01.04.2021.
The present GSTR-1/3B return filing system to be extended till 31.03.2021 and the GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.
Amendment to CGST rule: Various amendments in the CGST Rules and FORMS have been recommended (including the furnishing of Nil FORM CMP-08 through SMS)
41st GST Council Meeting Highlights:
Date held: August 27, 2020
Chaired by: Union Finance Minister Nirmala Sitharaman
The Key Highlight:
The 41st Council Meet was all about providing compensation to states to bridge the revenue-expenditure gap due to the GST shortfall. The states were guaranteed payment for any loss of revenue in the first five years of GST implementation from 1st July 2017. The shortfall is calculated assuming a 14% annual growth in GST collections by states. The base year taken is 2015-16.
The Revenue Secretary mentioned that the GST shortfall in FY 21 stands at INR 2.35 lakh crore – out of which only INR 97k crore is due to GST implementation and the rest is due to the pandemic. The center is now bound to compensate. Attorney-General said that GST Compensation has to be paid for a transition period – from July 2017 to June 2022. And states with an annual growth rate of less than 14% will be compensated for the shortfall until 2022. The states have been given 2 options:
Option 1: The center will facilitate states through RBI in getting loans – which is INR 97K crore. This amount can be repaid after 5 years on the collection of cess. The states will have to pay a reasonable rate of interest. This boils down to borrow less and get cess later.
Option 2: The states can borrow The entire INR 2.35 lakh crore directly from the RBI. This, in turn, boils down to borrow more and pay for it using the cess collected in the transition period.
Along with this, the center will provide relaxation of 0.5% in states’ borrowings under the FRBM Act. This will be eligible for a sum of INR 2.03 lakh crore. The above arrangements remain valid only for the current Financial Year 2020-21. A new Council meet will reevaluate the situation in April 2021.
The states have asked for a 7-day window to think about the options.
40th GST Council Meeting Highlights:
Date held: June 12, 2020
Chaired by: Union Finance Minister Nirmala Sitharaman
The 40th GST Council meet was the first to be held after the COVID-19 breakout in India. A lot of discussions like GST compensation, inverted tax structure and rate rationalization were postponed to the next council meeting.
1. Reduction in late fee for past returns:
The late fees on pending GST returns from July 2017 to January 2020 has been waived off for taxpayers with nil tax liability.
A maximum late fee of INR 500 for taxpayers who will file their pending GSTR-3B returns between July 1, 2020 and September 30, 2020.
2. Small taxpayers / MSME filers:
For Feb to April 2020 tax periods – In case of business with an aggregate turnover of up to INR 5 crore. If the tax is paid on or before 6th July 2020 (as per staggered dates), no interest would be charged. If the tax is paid after 6th July 2020 (as per staggered dates), the rate of interest for late furnishing of returnshas been reduced from 18% to 9% p.a. The only condition is that the returns for such tax periods should be filed on or before 30th September 2020.
For May to July 2020 tax periods- The late fee and interest will be waived off if the returns are filed before September 30, 2020. (staggered dates are yet to be announced)
3. One-time extension for revoking cancellations of GST registration-
The period for seeking revocation has been extended till September 30, 2020. This is applicable for all registrations which were cancelled till June 12, 2020. This will come as a relief for taxpayers who could not get their GST registrations restored on time. The original time limit is only 30 days from the date of issue of cancellation order
4. A special one-agenda meeting–
The council members have set a special one-agenda meeting in July 2020. The purpose is to discuss the GST compensation to states and Union Territories and its subsequent funding. The GST collections have been 45% of the usual levels in the past 2 months.
39th GST Council Meeting Highlights:
Date held: March 14, 2020
Chaired by: Union Finance Minister Nirmala Sitharaman
Infosys Chairman, Mr. Nandan Nilekani to present progress updates about GST It systems at the next three GST Council Meetings. The 39th GST Council meet took an array of decisions. Let’s take a look at it.
1. Deferment of the new GST return system and e-invoicing
March 31, 2021- the time limit to finalize the e-wallet system (for exporters)
October 1, 2020- the time limit for implementing e-invoicing and the QR code
The present return system of filing GSTR-3B and GSTR-1 will be continued until September 2020.
2. Important changes to GST rates:
The following changes will take effect from April 1, 2020.
Mobile phones and specified parts- GST rate was increased from 12% to 18% to correct inverted duty structure on mobile phones.
Matches- GST rate has been rationalized at 12%. Prior to this, the handmade ones were taxed at 5% and the rest at 18%.
Maintenance, Repair and Overhaul (MRO) services in respect of aircraft- GST rate has been slashed from 18% to 5% with full ITC (Input Tax Credit).
3. Interest on delayed payment:
The interest for delayed GST payment shall be calculated on the net tax liability. This will be given retrospective effect from July 1, 2017.
4. GSTR-9 and GSTR-9C:
The deadline has been pushed to June 30, 2020 for F.Y. 2018-19. Also, the turnover.
MSME taxpayers having turnover less than INR 5 crore- It is optional for them to file Form GSTR-9C for F.Y. 2018-19.
Taxpayers with an aggregate annual turnover of less than INR 2 crore in F.Y. 2017-18 and F.Y. 2018-19 will not pay any late fee for delayed filing of GSTR-9.
5. Waiver and extension of due dates:
GSTR-1 for 2019-20- will be waived for taxpayers who could not opt for the special composition scheme by filing Form CMP-02. (notification No. 2/2019-Central Tax (Rate) dated 7th March 2019)
GSTR-3B for July 2019 to January 2020- The due date to file the return has been extended till March 24, 2020 for taxpayers with principal place of business in the Union Territory of Ladakh. Also, a similar extension is recommended for Form GSTR-1 and Form GSTR-7.
6. Know Your Supplier:
A new facility called “Know Your Supplier” was introduced. This will enable the registered taxpayer to have necessary information about the suppliers with whom they conduct or intend to do business.
7. Revocation of cancellation:
The period for seeking revocation has been extended till June 30, 2020. This is applicable for all registrations which were cancelled till March 14, 2020. The extension is a one-time measurement that will come as a relief for taxpayers who could not get their GST registrations restored on time.
8. Other highlights:
A transition plan has been laid down till May 31, 2020 for the taxpayers belonging to Dadra and Nagar Haveli & Daman and Diu. This is due to the merger in January 2020.
Refund claims to be processed in bulk for exporters.
Present IGST and cess exemptions on the imports made under the AA/EPCG/EOU schemes will continue up to 31st March 2021.
The government of India has built an infrastructure to collect taxes online via Net Banking / Debit cards from selected banks. Taxpayers after filing their ITR on the Income Tax e-Filing platform will get a challan. Process the payment on the basis of the challan through TIN-NSDL. This not only helps in easing the Tax Collection process but also makes it quick and hassle-free. This article explains the online process of Payment of tax through IDBI.
Taxes in India are of two types:
Corporate Tax- It refers to as a direct tax imposed on corporate entities. The tax has to be paid on the income or capital invested in a company. Corporate tax can also be referred to as Company tax.
Income Tax- As the name suggests, its a tax on income earned. As per the Indian Constitution, income earned by Residents and income received/earned by Non-Residents in India is subjected to Income Tax. Individuals and other entities pay income tax.
Steps for Payment of Tax through IDBI
Visit the TIN-NSDL portal and hence, click on Services > e-Payment: Pay Taxes Online
Select Challan as per Tax Liability
Select the necessary challan as per your tax liability. Click on Proceed. Select the necessary challan by reading the following:
TDS/TCS Section– Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) section refers to as: Any tax collected while making any specified payments such as rent, commission, salary, interest, etc. Any tax collected by the seller at the time of sale If you have paid TDS or collected TCS then you need to look for challans under TDS/TCS Section
Non-TDS/TCS Section- Challans that are not regarding TDS or TCS are found under Non- TDS/TCS Section. Any type of Tax that doesn’t involve TDS or TCS has to be paid by challans mentioned under the Non- TDS/TCS Section.
Challan 280 of the Income Tax Department- Challan 280 is a much easy way to pay your advance tax, regular assessment tax, self-assessment tax, Surtax, etc. online in a few simple steps.
Enter the required details
1. Type of Tax Applicable 2. Type of Payment 3. Mode of Payment (Net Banking or Debit Card) 4. Select name of the Bank from a drop-down (IDBI) 5. PAN Number 6. Assessment year 7. Address 8. Email id 9. Phone number Enter the captcha code and click on Proceed.
Verify the details
Your challan has been created. Verify the details inserted. Check the Tick box click on Submit to bank.
You will be redirected to the IDBI portal. Select the type of user and click on the mentioned link.
Log in to the IDBI Account and verify Challan details
Verify your Challan details and Payable amount. Click on Continue
The facility provides a platform for taxpayers to make income tax payments online. The transactions can happen using the Net-banking/Debit card mode of some selected Banks.
How can I pay my tax online?
e-Payment of your taxes can be done only through TIN-NSDL Portal only if:
a. You have a bank account with the Net-banking/Debit card of the selected Bank. b. Your bank provides the e-payment facility.
After the conditions are fulfilled you can follow the above-mentioned steps to pay your Taxes online.
What if my bank doesn’t provide the e-Payment facility?
Well, in that case, you can do the e-Payment of your taxes from the account of any other person who has an account with the authorized bank having the online facility. However, make sure that on challan the mentioned PAN number belongs to you.