5 Things to Consider While Filing Income Tax Return

Wanna file income tax return on your annual income? If you are not familiar with the fiddly process, better to take assistance of a professional who can do the work for you at the blink of an eye. In case you are planning to file income tax return from your own, you need to keep some things in mind before proceeding. Whether you are filing income tax return online or via post, during the process (which is often exercised at last minute) you may miss some important information or even commit some mistakes. This post covers the list of five such mistakes that should be avoided while filing income tax return. Let’s get started:

  1. Not defining all your income sources

This is the most common mistake people attempt while filing income tax return. Interest earned on FDs or bank saving accounts is often forgotten by many individuals. Let’s tell you that this income is taxable as per your relevant tax slab. Banks, as a rule, deduct 10% TDS on the interest an individual earned on FDs. However, if an individual fall under a higher tax slab, he/she has to pay income tax accordingly. If such incomes are not reported by an individual, it may fetch a notice from the department of Income Tax.

  1. Not paying tax on your house property

There is a notion in the mind of many people that even after having multiple residential properties, there is no need to pay income tax, but in actual it is a misconception. If you have more than one residential property, then you are supposed to pay income tax for that, even if the property is unoccupied and you are not earning any income from it. There is no income tax on the house you occupy. Other than that, tax is to be paid for all other houses you have.

  1. Providing incorrect personal information

Income tax department communicates regarding all the necessary information via email or post, thus it is extremely important to provide all personal details accurately before filing income tax. Your minor mistake can wreck havoc and you might miss some important notifications. Therefore, it’s always necessary to check/recheck your personal information like postal and email address while filing your income tax.

  1. Not informing about the exempted income

There are many types of income that are exempted from tax. Though there is no need to pay income tax for incomes like dividends or long-term gains, reporting about them to the income tax department is a necessity. Remember that, if you are not reporting about such incomes, income tax department may get such details from the investment company or brokerage house.

  1. Not verifying the income tax form before filing

Whether you have opted for filling the income tax form offline or online, mistakes may happen. Therefore, it is recommended that you must cross check the filled-up form carefully in an attempt to avoid any mistakes. Even if you’ve assigned the task of filling your form to your tax consultant or accountant, you need to verify the accuracy of the information by personally checking it.

A Complete Guide to GST Registration

Goods and Services Tax (GST) is the only indirect tax for the whole nation, making India a unified market. It is levied on the supply of goods and services, right from the manufacturer to the consumer. Despite the fact that GST has taken the world by storm, many businesses are still unfamiliar with the process required for GST registration. That’s why; we’ve come up with this tutorial to make you aware of the registration process of this new taxation regime. Continue reading.

What is GST Registration?

Every supplier of goods and services who makes a taxable supply with an aggregate turnover of more than Rs. 20 lakhs (Rs. 10 lakhs for NE and hill states) in a financial year is mandatory to register as a normal taxable person. And the process of registration is known as GST Registration. In case an organization continues doing business with no registration under GST, it will be an offense under the new tax and heavy penalties will be applied.

What is GST Registration Number?

GST Registration Number or GSTIN is a 15-digit identification number that is assigned to each candidate who applied for GST Registration. It is entirely based on the PAN number and State code. First two digits embody the State code, another 10 digits represent the PAN number of the applicant, one digit stands for the entity code, one digit is blank, and the last one represents the check digit.

Who Should Register for GST?

The following persons are required to register for GST:

  • Individuals registered under the Pre-GST law such as VAT, Service Tax, Excise, etc.
  • Businesses whose turnover exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for the North-Eastern States)
  • Individuals making interstate supplies
  • Casual taxable persons
  • Non-resident taxable persons
  • Agents of a supplier and input service distributor
  • Folks who’re paying tax under the reverse charge mechanism
  • Every e-commerce operator
  • Persons supplying online information and database access or retrieval services from a place outside the country to a person in India, except a registered taxable person

What’re the benefits of registering a business under GST?

Registration under GST will confer the following benefits to the business:

  • Legally recognized as goods and services’ supplier
  • Legally authorized to collect tax from their customers as well as pass on the taxes credit paid to them
  • Easy flow of Input Tax Credit from the suppliers to the recipients nationally

Documents required for GST Registration

The following documents would be required to obtain GST registration:

  • PAN card of the company
  • Proof of organization like partnership deed, certificate of incorporation, Articles of Association (AOA)/Memorandum of Association (MOA)
  • Details and proof of place of business such as electricity bill and rent agreement
  • Cancelled cheque of your bank account incorporating name of account holder, IFSC code, MICR code, and bank branch details
  • Authorized signatory such as list of directors with their identity and address proof in case of company or list of partners along with their identity and address proof in case of partnership firm

GST Registration Process

You can register for GST by navigating to https://www.gst.gov.in/ link. The applicant will need to submit an online application for GST registration with the Form GST-1 in tandem with details of the goods and services to be dealt. The registration payment will be made online. After the submission of the application, a temporary GST registration number would be provided. While submitting the application, the candidate would need to print a copy of the application, attach the aforementioned documents, and final GST certificate will be issued by the concerned officer.