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Taxes in India - A Taxing Affair

Tax Complications, Confusion and Chaos ?

Taxes without Jargon and Jitters !

Benefit From Gray Arrow A Free Kaytek Business Information Service

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.

Gray Arrow New ! Updated - The greivance raised below was replied to yesterday as being successfully closed. The portal is now showing the correct verification information. We thank the Income Tax portal technology team for their response. (13th January 2022 )

Gray Arrow New ! Indian Income Tax Return Filing Portal - Contradictory Verification Information ? (4th January 2022 )

Last week, there was a personal experience of two cases in which the verification information of the returns for AY 2021-22 filed on the Indian Income Tax portal was displaying contradictory information.

This was noticed for both an individual assessee ITR 3 return e-verfied using Aadhar OTP as well as private limited company ITR 6 return e-verified using a digital signature (DSC).

In both the cases, the Dashboard shows 'Filed Successfully' with both 'Return filed on 30-Dec-2021' and 'Return verified on 30-Dec-2021'.

However, if one goes to e-File --> Income Tax Returns --> View Filed Returns, it says 'ITR Filed Dec 30 2021' but it shows 'Pending for e-verification Dec 30 2021'.

In the case of the company ITR 6 return filing, the above contradictory status (between dashboard & 'filed returns' page) is showing consistently since the date of filing and verification.

In the case of the individual ITR 3 filing, the acknowledgement form downloaded on 30th December 2021 from the website after successful e-verification using Aadhar OTP mentions correctly that the return form need not be sent to Bengaluru for verification.

However, on 3rd January 2022, when the acknowledgement form was downloaded from the website for the same individual ITR 3 return ; it displayed the signature space for verifying the return and the instructions mentioned about sending the same to Bengaluru. This is indeed surprising.

Note: A greivance has been raised on the aboe company ITR 6 filing discrepancy and any response received will be suitably updated here.

Gray Arrow New ! Indian Income Tax Portal AIS facility not working with Chrome (7th December 2021 )

The Indian Income Tax Department has recently introduced a new AIS (Annual Information System) portal which can be useful to Indian income tax assesses for compiling the information already available to the Income Tax authorities under the different heads of taxable income.

During the last couple of days, the AIS portal was unavailable for access via the Google Chrome web browser. This was tried on multiple days without success displaying the 502 Web Server Error.

However, the same can be accessed via the Mozilla Firefox browser. This may help people save time in this critical period of filing income tax returns.

More at this link.

Gray Arrow New ! Medium Article Automation Helps Ease Regulatory Compliance (7th May 2019 )

Down Arrow 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.

Gray Arrow 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.

Gray Arrow 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.

Down Arrow 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.

Gray Arrow Related - Investments in India.

This cannot be construed to be legal or taxation or investment advice. Consult your tax or investment or legal representative for the same.

Down Arrow 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.

Down Arrow 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).

Down Arrow 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.

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 :

Gray Arrow 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.

Gray Arrow 2.0 - Preparation of Annual Accounts - Profit & Loss Account / Capital Account / Balance Sheet and associated Reporting.

Gray Arrow 3.0 - Payment of Correct,Periodic Taxes on the regulatory websites.

Gray Arrow 4.0 - Preparation of Computation of Taxes for different types of assesses based on accounts figures arrived at in Point 2.0.

Gray Arrow 5.0 - Preparation & Filing of the Correct Returns either manually or electronically on the regulatory websites.

Gray Arrow 6.0 - Handling Correspondence & Responding to Queries from Government Regulatory Departments on our returns submitted.

Down Arrow 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.

Down Arrow 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.

Down Arrow All-India (Federal) Central Government level

Gray Arrow Income Tax (on Personal & Business Incomes including Capital Gains)

Gray Arrow Dividend Tax (On Dividends received by Shareholders from Companies)

Gray Arrow 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.

Gray Arrow Excise Duty ( On Goods Assembled / Manufactured In India) (Now replaced by GST - Goods & Services Tax)

Gray Arrow Customs Duty (On Goods Imported Into India from Outside)

Gray Arrow 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.

Gray Arrow Central Sales Tax (On Sales Of Goods between different States) (Now replaced by GST)

Down Arrow Specific State Government Level and City Specific Municipality levels (Now replaced by GST)

Gray Arrow Sales Tax / VAT - Value Added Tax (Now replaced by GST)

Gray Arrow Profession Tax (On Specified Professions)

Gray Arrow 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.

Down Arrow 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 :

Gray Arrow April 2008 to March 2009 Square Separator April 2007 to March 2008 Square Separator April 2006 to March 2007 Square Separator April 2005 to March 2006

Down Arrow This has been further categorized both for critical tax dates every month as well as for specific months as shown below.

Gray Arrow Common Dates Every Month Square Separator Specific months - April Square Separator June Square Separator July Square Separator September Square Separator October Square Separator December Square Separator January Square Separator March Square Separator

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.

Down Arrow Taxes Currently Abolished

Gray Arrow 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.

Gray Arrow Fringe Benefit Tax on certain expenses incurred on employees. Separate FBT Section with Simple Online Calculators for FBT expenses.

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Updated on 13th January 2022.
Created on 25th March 2005.

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