- START A BUSINESS
- MANDATORY REGISTRATION
- NEED BASED REGISTRATIONS & LICENSES
- INCOME TAX & GST
- TRADEMARK / PATENT
Income tax & GST
“Taxes are the due we pay for the privileges of membership in an organized Society.”
Direct Taxes and Indirect Taxes
The Tax we pay as an Income Tax is a Direct Tax, in which we are paying the tax and we are the sufferer of Tax. Income Tax is a certain percentage of our Income that we have to pay regularly to the Government. The Income Tax is Govern by THE INCOME TAX ACT, 1961. The Central Board of Direct Taxes (CBDT) is an important part of the Department of revenue. In Income tax, Income of Previous Year is assessed or taxed in succeeding year i.e., The Income of the Year 2016-17 is taxed or assessed in the Year 2017-18.
A person by whom any tax or any other sum of money is payable under the Income Tax Act is the Assesses. So, now the question is what is the definition of Person in the ACT?
Which is very simple the following seven types of units of assessment
Now the question is “What is the meaning of Income?”
According to the definition given u/s 2(24), Income includes:-
Now, the question arises at what rate? or how the Tax is calculated?
The current Slab rates are as follows for financial year 2017-18,
|Income Slab||Tax Rate|
|Income up to Rs. 2,50,000*||No Tax|
|Income from Rs. 2,50,000 – Rs. 5,00,000||5%|
|Income from Rs. 5,00,000 – 10,00,000||20%|
|Income more than Rs. 10,00,000||30%|
Income Tax Return Filing
There are seven types of Income Tax returns
This Return Form is to be used by an individual whose total income for the assessment year 2018-19 includes:-
This is to be used by an individual or a Hindu Undivided Family whose total income for the AY 2018-19 includes:-
(Total income from the above should be more than Rs 50 Lakhs)
Further, in a case where the income of another person like one’s spouse, child, etc. is to be clubbed with the income of the assesses, this Return Form can be used where such income falls in any of the above categories.
The Current ITR 3 Form is to be used by an individual or a Hindu Undivided Family who have income from proprietary business or are carrying on the profession. The persons having income from the following sources are eligible to file ITR 3 :
The current ITR4 is applicable to individuals and HUFs having income from a business or profession and who have opted for the presumptive income scheme as per section 44AD, Section 44ADA and Section 44AE of Income Tax Act. However, if the turnover of the business exceeds Rs. 2 cores, the taxpayer will have to file ITR-3.
ITR 5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons) and BOIs (Body of Individuals)
For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes)
This return has to be filed electronically only.
For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).
GST (Goods & Service Tax)
“GST is a cure for ills of existing Indirect Tax”
Goods and Services Tax is an indirect tax levied in India on the supply of goods and services. GST is levied at every step in the production process but is meant to be refunded to all parties in the various stages of production other than the final consumer.
Goods and Service tax means a tax on supply of goods or services, or both, except taxes on the supply of alcoholic liquor for human consumption (Article 366(12A) of Constitution of India). GST is a value-added tax levy sale or services or both. GST is a destination based consumption tax. GST offers a comprehensive and continuous chain of tax credit. GST where the burden is borne by the final consumer. GST eliminate cascading of tax. GST brings a uniform tax structure all over India.
There are some Advantages in GST:-
Dual GST Model
SGST ,CGST and IGST
|Collected by the state Govt.|
|Collected by Central Govt.|
|Collected by the central Govt. or interstate supply of Goods and Services.|
As per the CGST Act subject to changes by CBIC Notifications
|Return Form||Particulars||Frequency||Due Date|
|GSTR-1||Details of outward supplies of taxable goods and/or services affected||Monthly||11th* of the next month with effect from October 2018
*Previously, the due date was 10th
|Details of inward supplies of taxable goods and/or services affected claiming the input tax credit.||Monthly||15th of the next month
|Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of tax.||Monthly||20th of the next month
|GSTR-3B||Simple Return in which summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by taxpayer||Monthly||20th of the next month|
|GSTR-4||Return for a taxpayer registered under the composition levy||Quarterly||18th of the month succeeding quarter|
|GSTR-5||Return for a Non-Resident foreign taxable person||Monthly||20th of the next month|
|GSTR-6||Return for an Input Service Distributor||Monthly||13th of the next month|
|GSTR-7||Return for authorities deducting tax at source.||Monthly||10th of the next month|
|GSTR-8||Details of supplies effected through e-commerce operator and the amount of tax collected||Monthly||10th of the next month|
|GSTR-9||Annual Return for a Normal Taxpayer||Annually||31st December of next financial year*|
|GSTR-9A||Annual Return a taxpayer registered under the composition levy anytime during the year||Annually||31st December of next financial year*|
|GSTR-10||Final Return||Once, when GST Registration is canceled or surrendered||Within three months of the date of cancellation or date of cancellation order, whichever is later.|
|GSTR-11||Details of inward supplies to be furnished by a person having UIN and claiming a refund||Monthly||28th of the month following the month for which statement is filed|