Tax Complications, Confusion and Chaos ?
To help simplify the understanding of Tax Matters in India, we shall occasionally post Information, Perspectives, Visuals based on our analysis and first-hand experiences.
New ! Medium Article Automation Helps Ease Regulatory Compliance (7th May 2019 )
Payment Link on Government of India's Main Income Tax Efiling website Not Working (25th July 2013 )
It is indeed a pity that many Government websites do not take the basic necessary precautions in presenting their user's with updated links.
Problem : Take the example of the Government of India's Main Income Tax Efiling website. On the main page, under 'Services' on the left side the 2nd last option is 'E-Pay Tax'.
Clicking on the said 'E-Pay Tax' Link leads you to the next page which when you press 'Confirm' takes you to a non-functioning link.
Most of the modern web browsers rightly give you a warning on the above page. e.g. Mozilla Firefox reports the connection as 'Untrusted' and warns you of the dangers of going ahead.This has been the situation since the last couple of days.
Solution : Use this link available from the main TIN website to make your Income Tax payments.
It is a pity that even during this time of peak income tax period of filing tax returns, government websites are not updated adequately, causing inconvenience to their visitors.
Suggestions As Regards New 26AS Print Format Provided To Income Tax Authorities (20th December 2012 )
A couple of weeks while printing out 26AS in the new format from the Income Tax website, I realized that the same would lead to wastage of valuable resources. I have emailed them 2 suggestions as regards 26AS Printing.
First, The new format of 26AS PDF uses a lot of printer ink as all the headings have a black background and white foreground. To minimize printing costs, kindly reverse the format appearance of the column headers. Use Black Foreground and White Background. This will help immensely not only in reducing printing costs but also aid readability.
Second, there is NO need to repeat column headings after every entry. The earlier format was fine in this respect.
Today, they have acknowledged the same and have emailed a thank you note in this regard.
In case you happen to meet any Senior Official in the relevant Department, requested to kindly also take up the matter as per convenience so that we can collectively prevent large scale wastage of precious resources.
Problem in e-Filing of Corporate Income Tax Return by Sep 30th ? (25th September 2010 )
We have identified a problem in e-Filing of Income Tax returns for Corporate Users who have to compulsorily digitally sign the same using DSCs.
The Java applet on the Income Tax efiling website that needs to read the XML file only works when the XML file is stored in a folder called 'fakepath' on the C: Drive of the user's machine.
Hence, for Corporate Users, to successfully sign and upload the XML file, please create a folder called 'fakepath' on the C: Drive of your machine and copy your automatically generated ITR6_PAN_NUMBER.xml file in that folder.
Hence, the final file location for successful signing and uploading will be C:\fakepath\ITR6_PAN_NUMBER.xml.
This problem has already been reported to the Office of the Director General of Income Tax (Systems) in Delhi.
Emailing Of Annual Income Tax Statements By The Income Tax Department (11th December 2008 )
Assessees that had filed Income Tax Returns electronically for AY 2008 2009, have received Form No 26AS - Annual Tax Statement Under Section 203AA by email.
This has 3 parts - Details of Tax Deducted At Source (TDS), Tax Collected At Source (TCS) & Tax Paid (Other than TDS & TCS).
Increasing Efficiency & Productivity of Tax Processes for Individuals & Organizations (24th October 2008 )
Fast paced economic and global induced technology changes have dictated that all of us look afresh at improving our personal and organizational productivities as much as possible via technology and other means.
This will not only be an imperative for future growth but also a survival imperative for many individuals and organizations.
Increasing Efficiency & Productivity of Tax Processes for Individuals & Organizations(cont)
Government Regulatory Tax Filing & Payment Processes & Systems is an area where there is a lot of scope for improving productivities & efficiencies for both Direct & Indirect Tax Matters.
Some of the possible areas for increasing efficiencies via Increasing Computerization & Automation are the following processes :
1.0 - Correct Tax Planning at the beginning & middle of the year to ensure that excess tax / interest due to delay in payments is not paid unnecessarily. This can be done by ensuring that adequate knowledge is available to at our end for smart optimal short term / long term tax planning.
2.0 - Preparation of Annual Accounts - Profit & Loss Account / Capital Account / Balance Sheet and associated Reporting.
3.0 - Payment of Correct,Periodic Taxes on the regulatory websites.
4.0 - Preparation of Computation of Taxes for different types of assesses based on accounts figures arrived at in Point 2.0.
5.0 - Preparation & Filing of the Correct Returns either manually or electronically on the regulatory websites.
6.0 - Handling Correspondence & Responding to Queries from Government Regulatory Departments on our returns submitted.
Death and Taxes - The Only Two Certain Events in Life.....
Taxation of Business and Personal Transactions involving Purchases and Sales of Goods and Services is a complex and Taxing Issue in India. Both Direct & Indirect Taxes exist at different geographic levels. There is no unified system for taxing of both goods and services like other countries.
Double Taxation in India - A Vexing Problem (11th December 2008 )
There are also cases of double taxation wherein which the government collects taxes twice on the same entity.
e.g. In the case of software packages, the state Governments charge VAT @ 4% whereas the Central Government has recently started charging Service Tax on the same @ 12.36% under the Taxable Service category of Information Technology Service.
In this case, the government cannot decide as to whether A Software Package is a 'Material' ( for it to be charged VAT) or a Service ( for it to be charged Service Tax).
In this case, The State Level Sales Tax Authorities and the Central Level Service Tax Authorities both continue to charge their respective taxes on the same transaction. This is ridiculous and must be stopped immediately.
All-India (Federal) Central Government level
Income Tax (on Personal & Business Incomes including Capital Gains)
Dividend Tax (On Dividends received by Shareholders from Companies)
TDS (Tax Deducted At Source)- For payments made on account of expenses incurred or advances paid for interest, contracts, commission, brokerage, rent (of plant & machinery & other assets), professional charges & employee salaries over specified limits.
Excise Duty ( On Goods Assembled / Manufactured In India) (Now replaced by GST - Goods & Services Tax)
Customs Duty (On Goods Imported Into India from Outside)
Service Tax (On Specified Services Produced / Consumed In India) (Now replaced by GST)
All central taxes attract surcharge, educational cess at specified percentages under different conditions.
Central Sales Tax (On Sales Of Goods between different States) (Now replaced by GST)
Specific State Government Level and City Specific Municipality levels (Now replaced by GST)
Sales Tax / VAT - Value Added Tax (Now replaced by GST)
Profession Tax (On Specified Professions)
Octroi or Entry Tax (On Entry Of Goods in a particular city) (Now replaced by GST)
The above lists are not exhaustive.
In addition, organizations also get covered by other regulatory government bodies like Centralized Employee Provident Fund Organization, Employee Labour Welfare Fund, Employee State Insurance Corporation (ESIC) for employee related matters.
Municipal Authorities (Corporations / Councils) also levy Property Taxes, Toll Tax, Road Tax (for use of infrastructure like roads, highways) etc as applicable.
Tax Issues in India are very complicated and it is always advisable to get multiple opinions from Appropriate Advocates & Lawyers to avoid legal hassles at a later stage.
Tax Information Calendar
Critical Month-wise Tax Dates for Companies and Corporates for Statutory Tax Payments, Reporting, Submission of Statutory Returns in Maharashtra, India for the following Financial Years :
April 2008 to March 2009 April 2007 to March 2008 April 2006 to March 2007 April 2005 to March 2006
This has been further categorized both for critical tax dates every month as well as for specific months as shown below.
Common Dates Every Month Specific months - April June July September October December January March
Please Note : For Income Tax purposes, the concept of Assessment Year is used. The Assessment Year increments the Financial Year by 1. e.g. Financial Year 2008 - 2009 is Assessment Year 2009 - 2010.
Related - Investments in India. This cannot be construed to be legal or Taxation advice. Kindly also consult your tax attorney.
Taxes Currently Abolished
Banking Cash Transaction Tax ( ) - From 1st June 2005, it was applicable @ 0.1 % for every Cash Withdrawal transaction on a single day of more than Rs 25,000/= (Indian Rupees Twenty Five Thousand Only) from Non Savings Bank Accounts by Individuals / HUF's (Hindu Undivided Family) and more than Rs 1,00,000/= (Indian Rupees One Lac Only) by others.
Fringe Benefit Tax on certain expenses incurred on employees. Separate FBT Section with Simple Online Calculators for FBT expenses.