Due Dates of Advance Tax for AY 2017-18

Advance tax (Section 208, 209 & 211)

Advance tax is payable on all income during the financial year in every case where the amount of such tax payable by an assessee during that year is Rs. 10,000 or more. Following is chart showing Advance Tax Liability for the A.Y. 2017-18:

Advance Tax Liability for All Assessee (other than covered under section 44AD of the I.T. Act 1961)

Due Date	Installment Payable
On or before 15th Jun, 2016	Not less than 15% of advance tax.
On or before 15th  Sep, 2016	Not less than 45% of advance tax as reduced by the amount paid in the earlier installment.
On or before 15Th Dec, 2016	Not less than 75% of advance tax as reduced by the amount paid in the earlier installments.
On or before 15Th Mar, 2017	The whole amount (100%) of advance tax as reduced by the amount paid in the earlier installments.

Advance Tax Liability for Assessee covered under section 44AD of the I.T. Act 1961

Due Date	Installment Payable
On or before 15th Jun, 2016	—
On or before 15th  Sep, 2016	—
On or before 15Th Dec, 2016	—
On or before 15Th Mar, 2017	The whole amount (100%) of advance tax as reduced by the amount paid in the earlier installments.

Note:

1.     Resident individuals who are over 60 years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax.

2.     Any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax paid during financial year ending on that day

3.     Deduction under Chapter VIA are allowable while computing liability of advance tax.

4.     TDS is to be reduced from total tax liability of assessee and then specified percentage be calculated of advance tax.

CA Poonam Jain

poonam.ca.jain@gmail.com

DUE DATES FOR FILING 15G/15H ONLINE BY PAYER

F.No. DGIT(S)/CPC(TDS)/DCIT/15GH/2016-17/4539

Government of India

Ministry of Finance

Central Board of Direct Taxes

Directorate of Income-tax (Systems)

New Delhi.

Notification No 9/2016

New Delhi, 9th June, 2016

Subject: Simplification of procedure for Form No. 15G & 15H – Clarifications – reg

Representations have been received for clarification on the following issues:

(a) Due date for quarterly uploading of 15G/H declarations by payers on e-filing portal,

(b) The manner for dealing with Form 15G/15H received by payer during the period from 01.10.2015 to 31.03.2016.

4. In this regard, it is hereby specified that:

(a) The due date for quarterly furnishing 15G/15H declarations received by payer from 01.04.2016 onwards shall be as given below:

Sl. No.	Date of ending of the quarter of the financial year	Due Date
1.	30th June	15th July of the Financial Year
2.	30th September	15th October of the Financial Year
3.	31st December	15th January of the Financial Year
4.	31st March	30th April of the Financial Year immediately following the financial year in which declaration is made.

(b) The payer shall furnish 15G/15H declarations received during the period from 01.10.2015 to 31.03.2016 on e-filing portal (http://incometaxindiaefiling.gov.in) in the given format on or before 30th June, 2016.

(PS. Thuingaleng)

Dy. Commissioner of Income-tax (CPC-TDS)

O/o The Pr. Director General of Income Tax (Systems)

Source: Income Tax

Finance Act changes w.e.f 1.6.16

Finance Act Changes applicable/effective from 1st june 2016

A QUICK SUMMARY

1. Electronic Hearing under Income Tax law enabled
2. Document required to be issued by an Income Tax Authority can be issued in paper form or communicated in electronic form
3. Equalization Levy @ 6% on _online digital advertisement and incidental services_ or provision of digital advertising space
4. TCS @ 1% on luxury vehicles and cash sale of goods or provision of services
5. Exit Tax for Charitable Institutions
6. Non resident not having PAN shall not be subjected to 20% TDS
7. Jurisdiction of Assessing Officer not to questioned in serach cases after one month from notice u/s 153A
8. Non Corporate assessee also to pay advance tax , _15% by 15th June . 45% by 15th Sep, 75% by 15th Dec and 100% by 15th March_
9. In case of presumptive Income 100% advance tax to be paid by 15th March_
10. Application for Waiver of Interest u/s 220(2A) to be disposed off with in one year
11. Interest under section 234C shall not be chargeable in case of an assessee having income under the head “Profits and gains of business or profession” for the first time,
12. Interest on Refund for timely filed return to be allowed from 1st April but interest on refund for belated return to be allowed from date of furnishing of return
13.  Interest on refund of self assessment tax to be allowed from date of filing of return or payment of tax, whichever is later.
14. No Interest to be allowed if refund is lesser than 10% of determined tax_
15. Additional 3% Interest for Appeal Effect delayed beyond 3 months
16. In ITAT post of Sr Vice President abolished
17. Rectification period of ITAT orders limited from 4 years to 6 months
18. Monetary limit for Hearing of appeal by SMC in ITAT raised from 15 lacs to 50 lacs u/s 255(3)
19. Time Limit for completion of assessments reduced from 24 months to 21 months . Assessments to be complted by 31st December.
20. Order for appeal effect to be passed with in 3 months from the end of month in which appeal order is received
21. Limit of Rs. 5000/- for Winnings from Horse Races enhanced to Rs. 10,000/-
22. For TDS on payment to Contractors Aggregate Annual Limit of Rs. 75000/- increased to Rs 100000/-_
23. Monetary Limit of Rs. 20,000/- for TDS on Insurance Commission u/s 194D reduced to Rs. 15000
24. Monetary Limit for TDS on Commission u/s 194H enhanced from Rs. 5000/- to Rs. 15000/- and rate reduced from 10% to 5% to bring parity with Insurance Commission._
25. Monetary Limit for TDS on Commission on Lottery Tickets u/s 194G enhanced from Rs. 1000/- to Rs. 15000/- and rate reduced from 10% to 5% to bring parity with Insurance and other Commission
26. TDS rate on withdrawl of NSS Deposits reduced from 20% to 10% u/s 194EE
27. TDS on LIC Maturities exceeding Rs. 1,00,000/- not exempt u/s 10(10D) was charged @2% by Finance Act 2014 wef 01-10-2014 . TDS rate lowered to 1%.
28. TDS @10% for compulsory acquisition of immovable property other than agriculture land where aggregate payments during financial year exceed Rs. 2 lacs now enhanced to Rs 2.50 lacs.
29. Form 15G/15H enabled for rental payments also
30. The Direct Tax Dispute Resolution Scheme for immunity from post assessment interest, penalty and prosecution for cases pending before CITA on 29-02-2016 [Scheme Available up to 31st December]
31. The Income Declaration Scheme 2016. Tax, Surcharge and Penalty @ 45% of Undisclosed Income. Declaration to be filed till 30th September. Tax etc to be paid till 30th November.

TCS on cash sale of goods/services

TCS ON SALE OF GOODS/SERVICES IN CASH ABOVE RS.2LAKHS

Finance Act, 2016 imposed TCS on cash sale of goods or services w. e. f 1-6-2016.

New Sub Section (1D) of Section 206C is as follow

Every person, being a seller, who receives any amount in cash as consideration for sale of bullion  or jewellery or any other goods (other than bullion or jewellery) or providing any service shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,—

 (i) for bullion, exceeds 2lakhs rupees; or

(ii) for jewellery, exceeds 5lakhs rupees or

(iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds 2lakhs rupees

Provided that no tax shall be collected at source under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B

Analysis of Provision of TCS on cash sale of goods or services : Conditions

1. Sale of any goods or any services (other than bullion or jewellery)
2. Consideration for goods or services exceeds Rs. 2,00,000 in a (single) bill
3. Out of such consideration, any amount is received in cash
4. The seller will collect tax at the rate of 1% of sale consideration
5. The seller will collect tax at the rate if sale is made or service is rendered w.e.f 01.06.2016
6. Tax will be collected at the time of receipt of any amount in cash.
7. The seller will not be obliged to collect the tax, if the buyer has deducted the tax at source from the payment.
8. Seller/service provider is required to take PAN of the purchaser/recipient of service.The person raising bill shall ensure after verification that PAN has been correctly furnished and mentioned in the bill. If PAN is not available, a declaration in Form No. 60 should be taken from the purchaser/recipient of service.Such a person is required to retain Form No. 60 for a period of 6 years from the end of the financial year in which the transaction is undertaken.
9. The seller will furnish certificate to the buyer stating that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected.

Example- MR A purchases goods from distributor for Rs. 8.00 lac on 10.06.2016, payment of Rs. 795000/- has been made by cheque/RTGS on 11.06.2016, balance 5000/- has been paid in Cash on 12.06.2016. Please note that Seller has to collect TCS @ 1% on Rs. 800000/- (i.e Rs. 8000/-).

Why TCS on cash sale of goods or services ?

As per the Memorandum explaining provisions of the Finance Bill, 2016, clarifies as under:

“In order to reduce the quantum of cash transaction in sale of any goods and services and for curbing the flow of unaccounted money in the trading system and to bring high value transactions within the tax net, it is proposed to amend the aforesaid section to provide that the seller shall collect the tax at the rate of one per cent from the purchaser on sale of motor vehicle of the value exceeding ten lakh rupees and sale in cash of any goods (other than bullion and jewellery), or providing of any services (other than payments on which tax is deducted at source under Chapter XVII-B) exceeding two lakh rupees.”

Finance Minister, in his budget speech :

“149. I also propose to collect tax at source at the rate of 1% on purchase of luxury cars exceeding value of Rs. ten lakh and purchase of goods and services in cash exceeding Rs. two lakh. For compliant taxpayers with resources, this levy not only advances collection of tax when the expenditure is incurred, but it provides data to the tax authorities to identify the persons who incur such expenditure, but may be missing from the tax base.

   

TCS on cash sale of goods or services:When not applicable ?

1. New proviso to sub-section (1D)

The seller will not be obliged to collect the tax, if the buyer has deducted the tax at source from the payment. Thus Provider of a service may not be obliged to collect tax, if the recipient has deducted tax at source.

E.g If Mr A rendered the services to Mr B for Rs 300000 and Mr B Deducted TDS on Rs 300000 before making the payment to  Mr A, then Mr A is not obliged to deduct TCS of Mr B

2.New Sub-section (1E)

Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed

Definition of Buyer and Seller
(a) Seller:

According to this provision every following person is covered under the scope of the seller for

the purpose of TCS:

1. The Central and State Government.

2. Local authority

3. Statutory corporation or Authority

4. Company

5. Firm

6. Co-operative society

7. Individual or Hindu undivided family(HUF) if covered under section 44AB (mandatory

Audit)

Buyer

According to the this provision (Explanation to Sec 206c)  Buyer Means a person who obtains in any sale, by way of

auction, tender or any other mode, the specified goods ,or right to receive any such goods

but does not include

1. Public sector company,

2. Central/State Government,

3. Embassy, a High commission, legation, consulate and the trade representation of a

foreign state and

4. A Club

5. A buyer in the retail sale of such goods purchased for personal consumption

QUICK SUMMARY

1. Goods purchased by end use consumers are not covered under TCS ‘
2.  No cash payment to be made even in part against Single Bill exceeding 2 Lacs, otherwise Seller to deduct TCS.
3.  TCS to be collected on amount of Rs200,000 or more, it means no TCS upto 199,999/-
4.  No TCS if TDS is deducted by buyer
5. Consideration for goods or services exceeds Rs. 2,00,000 in a (single) bill.
6. Even if part payment is received in cash for the bill exceed Rs.200,000/- then the seller has to collect TCS
7. TCS is collected u/s 206(1D).
8. Quarterly returns to be filed by the seller.

            CA Poonam Jain

            (poonam.ca.jain@gmail.com)