Showing posts with label Know Your PAN. Show all posts
Showing posts with label Know Your PAN. Show all posts

Tuesday 19 July 2016

How to Pay Outstanding Income Tax Demand online?



Have you e-file your Income Tax Return? The due date for filing the Income Tax Returns has been approaching and the last date as per the Income Tax Department is 31st July, 2016 according to the financial year 2016-17. If you’re done with your submission process or E-filing IT returns via the online mode, it is well and good. But, if you haven’t completed the process of filing IT Returns, just take the guidance of other articles which we have provided in this blog.


Let’s discuss about the things which the tax payer must take care after successfully submitting or filing the Income Tax Returns for the financial year 2016-17. Usually, Income Tax Returns filing includes several steps such as E-filing Income Tax Returns online, Mailing Income Tax Returns V form to the Centralized Processing Cell (CPC- Bangalore) and finally receiving an ITR V acknowledgment form.
Once you receive the ITR V acknowledgement form from the CPC Bengaluru via an Email within a year of Filing the Income Tax Returns, you can find ‘Intimation under Section 143(1)’ which will be sent by the Income Tax Department. Intimation deals with the Outstanding Income Tax Demand that must be paid by the tax payer.
Here is everything you need to know about Outstanding Income Tax Demand and much more detailed guide for the tax payer to pay Outstanding Income Tax Demand online. In this article, you can check out how to pay or decline paying the Outstanding Income Tax demand received by the tax payer under section 143(1)take a look!


What is Intimation U/S 143(1)?
After successfully submitting or filing the Income Tax Returns online to the concerned department to CPC Bengaluru, it will send intimation U/S 143(1) to the specific tax payer regarding the Outstanding Income Tax Demand that must be paid by the tax payer. If the tax payer pays less Income tax than what they are actually made-up to at the time of e-filing Income Tax Returns online then, in such a case the tax payer will receive the intimation.
At the time of processing and assessing the e-filed Income Tax Return by the CPC, the Income Tax department will send an Email asking the tax payer to pay the outstanding demand under the Section 143(1). The email also includes all the essential calculations regarding the reason why the tax payer need to pay the outstanding demand or more tax than what the payer had already filed to the department. The CPC/AST will raise the outstanding tax demand that must be paid by the tax payer which is sent to the tax payer in the form of intimation through the email.


The tax payer can check out the calculations provided via the email and once the tax payer gets a clear picture regarding their outstanding income, you can either accept or refuse to pay the outstanding demand to the Income tax Department. Usually, the Income Tax Department sends Intimation under Section 143(1) for 2 major aims:
  • In a bid to notify the tax payer regarding any outstanding Income Tax demand or Interest payable by the tax payer.
  • The other reason is to let know the tax payer regarding any tax or interest refundable to the tax payer.


What if you Receive Email for ‘Tax Refund’ Intimation?
If you receive an email intimating you regarding the tax refund intimation then you need not do anything much. The Income Tax department will refund you the amount which you’ve paid additional than the actual Income Tax that you must pay to the Income Tax Department. The refundable amount will be received by the Tax payer to their concerned or authorized bank account.

What if you Receive Email for ‘Tax Demand’ Intimation?
If in case, you receive an email that states you need to pay outstanding tax demand, which is a tax the must be paid by you, then you need to check out all the calculations provided in the mail. If you’re totally pleased with the computation and other essential calculations done by the Income Tax Department and accept to pay the outstanding demand, then you must pay the amount of Tax payable under the Section 143(1).
In some cases, you may find the refundable amount is zero but, you need to pay certain amount as interest payable amount. Usually, the tax payer is demanded to pay the entire Income Tax demand as mentioned by the Income Tax Department within a stipulated time of about 30 days or 1 month after receiving the acknowledgement receipt of the Intimation.


How to Pay Outstanding Income Tax demand Under Section 143(1) online?
Here is a detailed guide with step-by-step procedure to pay the outstanding tax demand online:
Step 1: First of all, visit the official website of Income Tax department @ www.incometaxindiaefiling.gov.in and log in to the website.
Step 2: Once you log in to your website just hit the option “My Account.”
Step 3: Under the e-File menu option, you can find the link “Response to Outstanding Tax Demand.” Just hit the link in order to double-check the outstanding tax demand amount that you must pay.
Step 4: Just click on the option “E-Pay Tax” in order to pay certain taxes online. Once you hit the above option, you will be redirected to a website called “Tax Information Network” (TIN).
Step 5: On the new redirected web page, choose the option “Challan no /ITNS 280”.
Step 6: Then, hit the option “Income Tax – other than companies. “Enter all the essential details that include the following:
  • PAN number
  • Assessment Year (this year can be found on the first web page of the Intimation)
  • Address
  • Email-id
  • Mobile Number
Step 7: Under “Type of payment” section, you need to choose the option “Tax on Regular Assessment (400)”
Step 8: Choose your preferred authorized bank using which you wish to make your tax payment. Once you make your payment, hit the button “Proceed” and re-check your credentials
Step 9: You will be then directed to the Login page of your preferred authorized bank. Once you visit the login page, enter your credentials in order to login to your bank account.
Step 10: Next, enter the Outstanding Income Tax Demand amount asked by the Income Tax Department. You can find various options such as Interest, Penalty, income tax, Education cess, surcharge and much more.
Step 11: You can find the type of demand and the category to which it belongs can be found on the Intimation document sent by the CPC, Bengaluru.
Step 12: Once you enter the essential amount of outstanding tax demand, you can make proceed to make the payment by making use of your net-banking facility.
Step 13: Once you complete the payment of outstanding tax demand online, an online receipt will be generated. Take a print out of the receipt or acknowledgement for future reference.
How to check the status of your Outstanding Tax demand Payment online?
Once you complete the payment of outstanding tax demand online, there are two different methods to check the status of your payment. The concerned Income Tax department has received your Outstanding Tax demand payment or not can be checked using two methods. You can check for the status of Outstanding Tax demand payment online status after two to four weeks from the date of your payment.

Method 1:
  • Visit the official website of Income Tax department.
  • Click on the option “Outstanding Tax Demand” and check the status of your payment.
  • If your Outstanding Tax Demand payment is received by the Income Tax department then you will not find any kind of records.
Method 2:
  • You can also check the Outstanding Tax Demand payment status just by clicking on the option “View Form 26AS.”
  • Once you hit the option, you will be re-directed to a new web page of “TDS website.”
  • Click on the option “View Tax Credit – Form 26AS.”
  • Choose the exact Assessment Year as mentioned in the intimation and check out the PDF document.
  • You can even download the PDF document.
That’s it! These are the simple steps and process of making payment of outstanding tax demand online. Hope this detailed guide helps you in the best way to know the process of paying outstanding tax demand to the Income tax department.



Monday 18 July 2016

Major Changes in filing Income Tax Returns in Budget 2016



The Finance Minister named Arun Jaitley has changed the Union Budget of India for the financial year 2016-17, Upholding that the current Indian economy is going in a right track. In the Budget for the fiscal year 2016-17, few changes have been introduced in the rules and guidelines concerned to the Income Tax Department and the E-filing Income Tax Returns. Here are the significant changes made by the Finance Minister and how these changes will be applicable in filing income tax returns. The changes are mentioned below:



1.       For whom Filing Income Tax Return is Mandatory?
Previous Budget: According to the rule of previous financial year 2015-16, the tax payers must file their income tax return if the gross taxable income of tax payer is greater than the basic limitations of tax that are applicable for all the tax payers without incurring any sort of tax saving deduction,
Changes to Current Budget 2016: According to the rules of current Budget 2016, the tax payers must file their IT Returns if their gross income is greater than the basic tax limit applicable for the tax payer without incurring any sort of tax saving deduction. The gross income as mentioned above would also comprise the long term capital gains grossed on sale of shares or parity based mutual funds where the tax free STT or Securities Transaction Tax has been paid under the section of Income Tax 10(38).
The exceeding capital gains that must be shown as exempted income in the Income Tax Returns form until previous year has been changed in the current budget 2016. This significant change has been made as a rule in the new Budget 2016 in order to cover people who have grossed considerable long term assets but do not file IT returns. This would also applicable to the people who ought not to any taxable income but their long term assets go beyond their normal tax income limit.
The basic tax income limit for the current fiscal year 2016-17 is mentioned below:
·         For tax payers below the age of 60 years – Rs 2.5 Lakhs
·         For the tax payers having age in between 60 and 80 years (Considered as Senior Citizens) – Rs 3 Lakhs
·         For the tax payers having the age above 80 years (Considered as Very Senior Citizens) – Rs 5 Lakhs



2.       Time limit or Validity for filing Belated IT Returns
Previous Budget: Earlier, as per the rule in filing the Income Tax returns, the tax payer could file their belated or delayed income tax returns within 2 years from the corresponding financial year till its end.
Changes to Current Budget 2016: As per the latest changes made in the Budget 2016, if the tax payers do not file their Income Tax Returns before the due date i.e., 31st July, then it is called as belated return and the tax payer could file their belated Income Tax returns only within one year from the end of financial year 2016-17.

3.       Right to revise belated Income Tax Returns
Previous Budget: According to the existing rule in the previous fiscal year, the tax payer cannot revise their IT returns if it has been filed after the completion of the deadline of July 31.
Changes to Current Budget 2016: According to the new changes introduced in current Budget 2016, the tax payer can file revised return multiple times within a period of 1 year from the end of financial year.
In any of the case, if the tax payers do not file his/her Income Tax Returns within the due date, the tax payer would drop his/her right to carry onward damages.

4.       Defective Return

Previous Budget: According to the existing rules in the previous budget of Income Tax, ITR can be considered as defective by assessing officer under specific conditions. In such a condition, a period of 15 days will be provided to the tax payer so as to correct the mistake. If the mistake is not rectified by the tax payer, the filed ITR will be regarded as invalid. Such returns are considered as defective return.
Changes to Current Budget 2016: The new changes in the Budget 2016 eliminates the above mentioned condition for calling it as ITR defective. As per the latest rule, the ITR can be filed without the need of paying complete taxes and it would be regarded as valid return. However, the tax payer must pay the due amounts alongside the interest for filing ITR after the due date.
The new changes which have been introduced in the current Budget of the financial year 2016-17 are almost beneficial for all the tax payers. It is strongly advised to begin filing your ITR right now before July 31 i.e., the due date for filing IT Returns.
If you have queries about Income Tax efiling visit to EtaxAdvisor. We have full panel of Experienced CAs, they will help you with each and every step in Income Tax efiling Process.