HOW TO FILE TAX RETURN STEP BY STEP

Filing a tax return could be a challenge and especially in a country like India, where the population is 1.3 billion. Every Year many get arrested due to not filing the income tax return on time or hiding a hefty amount from the government. Filing a return on time could be beneficial for the applicant and the government. You must know how to file tax return step by step. The government gets their dues on time and the applicant doesn’t have to face any further inquiry or notice. According to the latest budget of 2017, there were several changes made into filing a return. Now a person earning below Rupees 5 lakhs per annum doesn’t need to file any return. An assessed required furnishing a report of audit specified under the law.

Don’t forget there are some documents also required while filing a tax return so keep them ready. Documents like Bank account details, PAN number, Aadhar Card, the address of the house property, Form 16, Pay Slips etc. are required. Likewise, some other details are required as well if you have any mutual funds like details of mutual fund statement, sale and purchase of equity funds, debt funds etc. Always keep in mind that you should file the correct information because of the government always double check the information provided.

There are two steps of filing a tax return, one is to file by in person and second is to file online. In this age of Internet and Wi-Fi, almost every one of us are very active on social Media platforms. In this age company like PayTM are earning billions of profit only through their mobile app through which a person can pay their TV cable, water, electricity or phone bills. So, now you can file your income tax return through the internet also. Here are some ways:

        The first step you have to login to E-filing application, now you have to go to E-file and submit ‘ITR Online’ then you have to select the income tax return form and the assessment year. Fill the details in the form and then click the submit button. After submission, an acknowledgment detail will be displayed.

        Don’t forget that filing a return on time could be beneficial for you and the government both, whereas not filing a return on time could get you in trouble.

In case you require any assistance in knowing about due dates of filing, ITR Form Number or procedure for filing of Income Tax Return, please visit www.incometaxindiaefiling.gov.in or call on +91- 9582961637 or visit our Facebook page @SMCGST .

Note on Internal Financial Controls Exemption for Private Limited Companies

Internal Financial Controls – Applicability on Private Limited Companies

As per provisions of Section 143(3)(i) of companies Act, The Auditor Report shall state whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

MCA vide its notification dated 13th June 2017 (G.S.R. 583(E)) amended the notification of the Government of India, In the ministry of corporate of affair, vide no G.S.R. 464(E) dated 05th June 2015 providing exemption from Internal Financial Controls to following private companies:

1. Which is one person Company (OPC) or a Small Company; or
2. Which has turnover less than Rs. 50 Crores as per latest audited financial statement or which has aggregate borrowings from banks or financial institutions or any body corporate at any point of time during the financial year less then Rs. 25 Crore.

The above exemption shall be applicable to a private company which has not committed a default in filing its financial statements under section 137 of the Companies Act 2013 or annual return under section 92 of CA 2013 with the Registrar.

Opinion

Based on above legal position, in case of

• One Person Company (OPC), or
• Small Companies or
• Private companies with turnover less than 50 Crore or
• Private Companies aggregate borrowings less than 25 Crore

The auditor is not required to report about the internal financial controls system in place. However, the exemptions available to Private Company under section 143(3)(i) would be available only if private company has not committed a default in filing its financial statements under section 137 of the said Act or annual return under section 92 of the said Act with the Registrar.

Note 1 One person company means a company which has only one person as a member.

Note 2 Small Companies means

a. paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or

b. turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees:

Provided that nothing in this clause shall apply to-

(A) a holding company or a subsidiary company;

(B) a company registered under section 8; or

(C) a company or body corporate governed by any special Act;

Scenarios

Practical Issues

1. Is Internal Financial Report once applicable, applicable forever?
2. As per exemptions as mentioned above, some private companies are not required to report on Internal Financial Controls (IFC). Do we need to consider the same while reporting under consolidated financial statement or exempted companies are required to report on Internal Financial Controls (IFC) as well because of applicability on Parent company?
3. What is the meaning of committed default and at what point of time default need to be seen? If default is made good then whether exemption is available prospectively or retrospectively from the date when the default started.

ISSUE - whether provisions of GST under Reverse Charge basis are applicable to purchase of Goods by a registered person from a CONSUMER supplier.

1) Sale of Old Jewellery

2) Sale of Consumer scrap such as plastic, newspapers, steel

3) Sale of used goods

4) Sale of used Car etc.

Can the transactions of the above nature be subject to GST under Reverse Charge basis?

As per the provisions of Sec.9(4) of the Central Goods and Services Tax Act – "The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods".

Tax shall be payable by the registered recipient on reverse charge basis if:-

a) The transaction is within the scope of "SUPPLY"

b) The Supply is of Taxable goods or Services

c) By an unregistered supplier

d) To a registered recipient

The scope of supply is governed by the provisions of Sec.7.

As per the provisions of Sec.7(1)(a) of the Central Goods and Services Tax Act – " Supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business."

For a transaction to fall within scope of supply, it should also satisfy the following conditions:-

a) made or agreed to be made for a consideration

b) in the course or furtherance of business

Under clause(a) of Sec. 2(17),Business includes "Any trade, commerce, manufacture, profession, vocation, adventure,wager or any other similar activity, whether or not it is for a pecuniary benefit"

A general view of the provisions of Section 9(4) depicts that purchases of Goods by a registered person from Consumer, being an unregistered person, shall be subject to Tax under Reverse Charge Basis. However, on analysis of the above provisions, an alternate view also appears that: -

1) Sale of personal Goods by the consumer is not in course of furtherance of business of the Consumer.

2) The definition of business includes Trade and Trade refers to activities of buying and selling of goodsand not Selling of goods alone.

3) Since the sale of goods by the consumer is not in course of furtherance of business, it is outside the scope of Supply.

4) Since Sale of Goods by a consumer is not a SUPPLY, such purchase of Goods by the registered person from consumer supplier should not be subject to Tax under Reverse charge basis.

We may also appreciate the following:-

A) The Consumer is destination point in the Chain of Supply.

B) The consumer does not avail credit of tax paid and Tax on goods have been fully paid.

C) There is no loss of revenue to the Government as the goods have passed through Tax.

D) The goods that are sold are used Goods, on which tax has been fully paid.

E) Even the FAQ's dated 31/03/2017 released by CBEC, Q.no10 under Scope of Supply, page 50, mentions -

Q. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of CGST/SGST Act? Give reasons for the answer.

Ans. No, because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was meant for non-business use.

(Source: Different)

How do banks calculate interest on savings accounts?

It really depends on the bank, the savings account, and the depositor's preferences. Somewhere in the fine print of the account paperwork, the methodology must be disclosed in considerable detail.

At a high level, there are two components to the interest calculation:

1. Day-Count Convention
2. Compounding Convention

Day-Count Convention: Some examples include these

• Actual/Actual - actual number of days over actual numbers of days
• Actual/365 - actual number of days over a presumed 365 day year (i.e. even leap years are treated as 365 days)
• Actual/360 - actual numbers of days over a presumed 360 day year
• 30/360 - number of days with all months presumed to have 30 days over a presumed 36o day year

Specifically for 30/360, there are several different standards that detail how to handle February (e.g. the ISDA standard is one).

Compounding convention: These are best explained by example, but here are some samples

• Annual
• Semiannual
• Quarterly
• Daily
• Continuous
• Simple

Let's run through some examples.

Example 1: 

• 1.5% interest, annual compounding, actual/actual day-counting

One month's interest for January 2015 would be (1 + 1.5%)^(31/365) - 1
One month's interest for February 2016 would be (1 + 1.5%)^(29/366) - 1
(Note: the year 2016 is a leap year)

Example 2:

• 2.0% interest, quarterly compounding, actual/365 day-counting

One month's interest for January 2015 would be (1 + 2.0%/4)^(4 * 31/365) - 1
One month's interest for February 2016 would be (1 + 2.0%/4)^(4 * 29/365) - 1
(Note: the year 2016 is a leap year, but it's still treated like it has 365 days)

Example 3:

• 2.5% interest, daily compounding, 30/360 day-counting

One month's interest for January 2015 would be (1 + 2.5%/360)^(360 * 30/360) - 1
One month's interest for February 2016 would be (1 + 2.5%/360)^(360 * 30/360) - 1
(Note: all full months are treated as 30 days in total length, and both formulas reduce to (1 + 2.5%/360)^(30) - 1)

The general formula is then (1 + r/k)^(k * t) - 1, where

• r = interest rate
• k = coumpounding factor
• t = time factor

What about "continuous compounding" you ask? Well that's just what happens when the compounding factor, k, approaches infinity. In that case we get the formula: e^(r * t) - 1

Continuous compounding is useful in quantitative finance because it's easy to take a derivative of e^x.

Lastly, there is "simple compounding", which is just: r * t. Note that this isn't really compounding at all, since there is no exponential.

To calculate dollars of interest with non-continuous, non-simple compounding use:
(account balance)(1 + r/k)^(k * t) = account balance + dollars of interest

If deposits and withdrawals are being made during the interest accrual period, the bank may adopt an average balance approach wherein interest is calculated on some weighted average balance over the accrual period. Alternatively, consider this example:

Example 4: 

• 1.5% interest, annual compounding, actual/actual day-counting
• $100 at start of month
• $200 deposit on the 15th

Depending on the terms of the account, one month's interest in dollars for January 2015 could be

• $100((1 + 1.5%)^(15/365) - 1) + $300((1 + 1.5%)^(16/365) - 1)
• $100((1 + 1.5%)^(31/365) - 1) + $200((1 + 1.5%)^(16/365) - 1)
• ($100(15/31)+$300(16/31))((1 + 1.5%)^(31/365) - 1)

There are many possibilities here that will vary from bank to bank and even account to account.

Positive Life and a Negative Mind

HOW LIFE BECOME POSITIVE TO NEGATIVE AND LOOKING TO TURNAROUND

_______________________________________________

A very famous author Joyce Meyer said "You cannot have a Positive Life and a Negative Mind"...

'Our thoughts can drive us to unimaginable success or Paralyze us in fear'

#theseeds4life

It's very true that what we think in routine or say consistently, we actually calling it to be the part of our life whether its a good thought or the bad thought. Because we concentrated on it, and we due practice of it, we actually allows those thoughts to be the very valuable part of our life. If you are very consistent with negative thoughts in your day to day life, it will make you convince that you lost all the power, you don't deserves to get anything good, so on. And you are not the only reason behind those negative thoughts because everywhere someone is trying to proving himself right over you. They may be scolding you, pushing hard to you, claiming you worst in front of others etc and you are easily getting stuck with their words which keep engaging your mind with the same.

What you think why all these are keep leading your life? Because you are listening to them and ignoring the best person of your life. To whom you keep ignoring, you are not taking care of. If you still finding that one, it means you need a break. A break to stand up and keep yourself in front of a mirror to meet that best person of your life. Give him/her your 10 minutes. You will definitely smiles at least three times with all the different angles on your face. If you have a doubt on me, go and check it yourself. Talk to him like you were missing him from years, praise him to be such a brilliant guy. Some negative thoughts will always be present and keep trying to disturb your wonderful discussion with the best person, that's okay, what all you have to do is just 'keep ignoring' or I will say 'stop listening'.

Practice it, because practice will make you perfect. And you for that you don't need hours just like in gym. You need ONLY 10 MINUTES !!! that's it.

You are the key of happiness in your life. Choose the positive thoughts, allow yourself to grow spiritually, mentally, and emotionally. Immediately flip every negative thought with a positive version of itself. Repeat it, make a software of this in your mind. You have two applications in your mind, negative one keep notifying itself where you just need to immediately open the positive application and focus on it. Surrender yourself to the positive version of your mind. Feel the breeze coming from the positive side and enjoy.

Before leaving you with yourself, there is one gift I want to give you, which you will receive after the following reading:

"One day a business man have lost millions of dollars because of the mistakes of his subordinate. Everyone suggested the businessman to kick him out of the business, file a complaint & put him behind the bars, etc. That evening, businessman called his subordinate in his office. Everyone was expecting that this subordinate is going to face that no one has ever expected to have in anyone's life. Even that subordinate was too scared and keep asking the god for putting him into such a situation. Finally he knocked the door of businessman office, and called to come in.

Here is the gift you are waiting for...

Businessman offered him a seat and putted one blank paper in front of him. He given the heading to that page "Positive things about Mr. Subordinate" and starts writing all those positive points relating to him, including how he saved billion dollars of the company, how he motivated and grown the team of this business, how his participation benefited to the business etc."

With this I learned to kick every negative thought with the positive version of my mind, which is already there and I just need to give it more importance than the negative thoughts.

Remember, to have a positive & a beautiful life you don't need to have 100% positive thoughts, you just need them to have 51%.