ITR: Deadline to file income tax return for FY2018-19 extended to August 31

ITR Date Extension – The government has extended the last date of filing Income Tax Returns (ITR) for the FY20 assessment year by individuals and certain non-corporate assessees by one month to 31 August. The finance ministry has extended the deadline for filing an income tax returns (ITR) for FY2018-19 (Assesment Year – 2019-20) by individuals to August 31, 2019 from July 31, 2019. The extension is a much-needed relief as there were multiple problems being faced by individuals in filing returns by July 31. 

The extension of the due date was applicable to all taxpayers liable to file their tax returns by 31 July, the original due date. This applies to assessees other than corporate taxpayers and a few others, including non-corporate entities, the books of which need not be audited, said the Central Board of Direct Taxes (CBDT). Individuals, including Salaried taxpayers, and entities – who do not need to get their accounts audited were required to file their income tax returns for fiscal 2018-19 (Assessment Year 2019-20) by July 31, 2019.

July 31 was the deadline to file income tax returns for most individuals and HUFs. This is that category of individuals and HUFs who are not mandatorily required to get their accounts audited for tax purposes. Some taxpayers were reportedly facing difficulties in filing their tax returns because of various reasons, including the extension of date for issuing Form 16, the tax deducted at source (TDS) certificate given by employers, said the CBDT order. 

This year CBDT had extended the deadline for employers to file their TDS returns, i.e., Form 24Q, from May 31, 2019 to June 30, 2019 and consequently deadline of issuing Form 16 by the employer was also extended from June 15, 2019 to July 31, 2019. 

itr deadline extended

The Income Tax department had last month extended the deadline for employees to issue Form 16 TDS Certificate for the financial year 2018-2019 to its employees by 25 days till July 10. This left the salaried taxpayers with a limited time-frame of just 20 days to file their income tax returns.

The Union budget for FY20 also proposed that return filing will be compulsory for even those who fall below the basic exemption limit of 2.5 lakh annual income if they get into specified high-value transactions such as spending on foreign travel.

With ITR Date Extension, individuals will have more time to file their ITRs without …

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How to File Income Tax Returns Online

Webp.net resizeimage 14 - How to File Income Tax Returns Online

The form is applicable to residents of India. Before filling the ITR, one needs to keep in hand details regarding Income from any source, such as property, salary, breakup of salary, etc. You would need to pay a late fee under fee u/s 234F if you miss the deadline.

Submitting Online:

  • This form needs to be submitted to the Income Tax Department’s website.
  • Log on to http://www.incometaxindiaefiling.gov.in. You will need to keep your user ID, password and date of birth ready for this. You will also be asked to enter a captcha code.
  • When you sign in, click on the option which says “Filling of Income Tax Return”
  • Select the ITR form name, choose the assessment year as well as the submission mode. You will need to prepare this and submit it on the website itself.
  • Fill in the rest of the details as required and hit the submit button.
  • The system will generate a message of acknowledgment which will tell you that your income tax return has been submitted successfully. After this, the ITR-V would pop up on the screen. This will be the acknowledgment and you will need to download this. The ITR-V would also be sent to the email id you have registered with the IT Department website.

Uploading XMLs:

  • Log on to the website http://www.incometaxindiaefiling.gov.in. Go to the homepage. Click on the “Offline Utilities” option.
  • You will come across another option which says “Income Tax Return Preparation Utilities”.
  • Choose the Assessment Year for which you are filling the income tax return.
  • Download the offline utility (Excel or Java)
  • Prepare the income tax return form offline at your convenience, save it and extract XML files.
  • Then go online again, click on the “Filing of Income Tax Return” option and submit the XML files.
  • E-verify filing of your return within 120 days of submitting it to complete the process.
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How to check your EPF balance: Via EPF Portal, Umang App, SMS, Missed Call

  • You don’t have to wait for your employer to share the PF statement at the end of the year to know the PF balance.
  • You can check the balance using the Umang App, EPFO portal, EPFO app, sending an SMS, or by just giving a missed call.

Every month your employer transfers some amount into your EPF account along with your contribution. The EPF passbook reflects the total amount in your EPF account along with the details of the monthly contributions made by you and your employer. Some amount is also deposited in the Employees’ Pension Scheme or EPS, which will be shown separately in the EPS column.

EPF balance - How to check your EPF balance: Via EPF Portal, Umang App, SMS, Missed Call

Earlier, employees had to wait for their employer to furnish their EPF statement at the end of every year but now they can easily check their EPF balance both online and offline. There are two online methods :

The offline methods available for the customer are :

  • SMS
  • Missed call service

Let us find out how to check EPF balance in detail –

I. Using the Umang app
Employees would now be able to view their PF balance on mobile phones with the help of Umang app. Umang app was launched by the government last year and provides access to various government services at one place.One can view EPF Passbook, raise claim and even track Claim using the app. To get started, you need to complete a one-time registration using your mobile number. 

II. Using the EPFO portal 
Instead of the unified portal, users will now be able to access their PF passbooks on a different website run by the EPFO. The unified portal can, however, still be used for transactional services like transfers. 

Step 1: The member passbook is available at www.epfindia.gov.in 

Step 2: Click on ‘For Employees’ under ‘Our Services’ 

Master - How to check your EPF balance: Via EPF Portal, Umang App, SMS, Missed Call

Step 3: Click on ‘Member Passbook’ under ‘Services’ 

It will take you to the page as below. 

Master 1 - How to check your EPF balance: Via EPF Portal, Umang App, SMS, Missed Call

Alternatively, you can directly go to the page: 

https://passbook.epfindia.gov.in/MemberPassBook/Login.jsp 

To access the passbook, make sure your UAN is activated by the employer. Remember, UAN is provided by the EPFO but it has to be verified and activated by your employer. So, if yours has already been activated, use it along with your password to log in and check your passbook balance. 


The passbook facility is not available for members of establishments that are exempt under the EPF Scheme, 1952. If you still try to …

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How to revive a Lapsed Insurance Policy

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Failure to pay the premium of a life insurance policy before the due date results in the policy lapse you can revive lapsed insurance policy. The cover ceases to be available once the policy lapses. It is possible to revive a lapsed life insurance policy subject to fulfillment of conditions. Life insurers also come up with special campaigns for the revival of lapsed policies with concession or waiver of penalties.

Time
A lapsed policy can be revived only if it has not crossed a certain period from the date on which the policy lapsed. This period is typically specified by the insurance company. Eligibility to revive a policy also depends upon the type of policy.

Visit insurer branch
The policyholder should visit the insurance company’s branch and get a revival quote. The revival quote will be typically a sum of all premiums due on the policy. This amount needs to be paid to the insurance company to revive the policy.

Medical report
Depending on the age of the policyholder and policy amount, a declaration of good health needs to be submitted. In case the policyholder has a medical history or is mandated to do a checkup, a medical report will have to be submitted.

Upaid Premium

To revive the lapsed policy, all unpaid premium on the policy must be paid along with interest due on the same.

Penalty
A revival penalty may be applicable on the amount to be revived or on the period since the policy lapsed.

Points to note
1. During schemes launched by the insurance company for the revival of lapsed policies, there can be some concessions on the penalty charged on revival.
2. Terms and conditions of the new contract can be different.


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What is Post Office Monthly Income Scheme ( POMIS )

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What is Post Office Monthly Income Scheme?

1. Post Office Monthly Income Scheme

Post office offers POMIS among a host of banking products and services, under the purview of the Finance Ministry. Hence, it is highly reliable. It is a low-risk MIS and generates a steady income. You can invest up to Rs. 4.5 lakhs individually or Rs. 9 lakhs jointly, and the investment period is 5 years. Capital protection is its primary objective.

For instance, if Sharma has invested Rs. 5 lakhs in the post office monthly investment scheme for 5 years. As mentioned above, the interest rate is 7.3%. His monthly income will be Rs. 3250 for that period. Postmaturity, he can withdraw his 5 lakhs, either from any post office or get it to his savings account via Electronic Clearance Service.

2. Features & Benefits of Post Office Monthly Income Scheme

Capital protection: Your money is safe until maturity as this is a government-backed scheme.

Tenure: The lock-in period for Post Office MIS is 5 years. You can withdraw the invested amount when the scheme matures or reinvest it.

Low-risk investment: As a fixed income scheme, the money you invested is not subject to market risks and is quite safe.

Start small: You can start with a nominal initial investment of Rs. 1500. As per your affordability, you can multiply this amount.

Guaranteed returns: You earn income in the form of interest every month. The returns are not inflation-beating, but is higher compared to other fixed income investments like FD.

Tax-efficiency: Though your post office investment doesn’t fall under Section 80C and the income is subject to taxation. On the other hand, it has no TDS either.

Eligibility: Only a resident Indian can open a POMIS account. NRIs cannot enjoy the benefits of this scheme. You can open it in your child’s name too, provided he/she is aged 10 or above.

Payout: You will receive the payout one month from making the first investment, and not the beginning of every month.

Multiple account ownership: You can open more than one account in your name. But the total deposit amount cannot exceed Rs. 4.5 lakhs in all of them together.

Joint account: You can open a joint account with 2 or 3 people. Regardless of who is contributing, it belongs to all account holders equally.

Fund movement: The investor can move the funds to an RD (recurring deposit), …

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Zero Balance Savings Account From Top Indian Banks: A Comparison

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A Zero Balance Savings Account, also known as a basic savings bank deposit (BSBD) account does not obligate the customer to hold a minimum running balance every month as prescribed by the bank. These also come with debit/ATM card and net banking facilities.

If you are looking at options to open such an account, here is a comparison on features of 4 leading public and private banks that provide their customers with BSBD account facility.

State Bank of India (SBI)

A BSBD account can be opened at an SBI branch as a single or joint account holder. A basic RuPay Debit/ATM card will be provided as a part of the banking facilities, free of charge. Receiving an amount through electronic internet transfer, depositing cheques issued by the central/state government, reactivation of inoperative accounts and closure of accounts is free of charge.

Interest earned on these accounts will be the same as a regular savings account, that is 3.5 percent per annum for deposits up to Rs 1 crore.

HDFC Bank

An HDFC Bank BSBD account comes with a free Rupay debit/ATM card and passbook facility. Cash and cheque deposit facility at the bank’s branches and ATM are also not charged with a free.

However, the withdraw facility through ATM/RTGS/NEFT/clearing/branch cash withdrawal/ transfer/ internet debits/ standing instructions/EMI are only free up to four transactions.

An interest at the rate of 3.5 percent per annum will be provided on account balances below Rs 50 lakh. Balances above Rs 50 lakh will receive a 4 percent interest.

ICICI Bank

ICICI Bank offers zero balance savings account with free passbook, Rupay card, and internet banking facilities. A cheque book will also be provided for free.

The daily card withdrawal or spending limits on its card is Rs 10,000.

An interest at the rate of 3.5 percent per annum will be provided on account balances below Rs 50 lakh. Balances above Rs 50 lakh will receive 4 percent interest.

Punjab National Bank

A zero balance savings account holder at Punjab National Bank (PNB) gets a cheque book with 20 leaves per year, after which normal cheque book charges are applicable. A debit/ATM card facility will also be provided, free of charge, however, only four withdrawals per month in including ATM withdrawals are allowed. The bank also deducts annual maintenance charges on the card, as applicable. No charges will be applied on reactivation of inoperative accounts.…

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PNB Customers: you would Not Be Able To Transact Via Non-CTS Cheques soon

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If you have an account with state-run lender Punjab National Bank (PNB) and deal frequently in cheques then you should pay heed to this news piece promptly. As customers who still possess Punjab National Bank non CTS cheques will not be able to make payments via such cheques after December 31, 2018.

PNB Customers: You Will Not Be Able To Transact Via Non CTS Cheques

The apex bank RBI has asked the banking fraternity to do away with Non-CTS cheques as the newly introduced CTS-compliant cheques are safe and easier when it comes to making payments using them.

So, the bank has asked its customers to get their Non-CTS compliant cheque book replaced immediately. This is due to the fact that these cheques will not be honored for clearance in the system with effect from January next year.

Banks have been directed by the RBI to issue only CTS-2010 standard cheques to their customers. Also, the central bank has said, “Banks shall not charge their savings bank account customers for issuance of CTS-2010 standard cheques when they are issued for the first time”.

The guidelines for issuance of CTS-2010 standard cheques were notified way back in the year 2010.

It is worth mentioning that the Cheque Truncation System or CTS is a process to stop the flow of physical cheque, wherein an electronic image of the cheque is presented as and when it comes for clearance. The process does away with the cost involved in the movement of physical cheques as well as aims at providing better service to customers by reducing clearing time.…

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Master - How to Pay Taxes Online and Offline

How to Pay Taxes Online and Offline

Pay Taxes Online and Offline

The income you earn is taxed in three ways, How to Pay Taxes Online and Offline, namely, a) Tax deducted at source (TDS), b) Advance tax payments and c) Self- assessment taxes paid before filing your income tax return (ITR).

You are liable to pay advance tax if your estimated income meets the criteria as stated in the current income tax laws. Abhishek Soni, CEO, Tax2win, an ITR filing company says, “Normally, an individual whose total tax liability exceeds Rs 10,000 in a financial year is liable to pay advance tax. However, as salary received by employees is subject to TDS, in that case, they are not mandatorily required to pay advance tax on salary income. However, if you have income from other sources such as interest income or capital gains that are taxable which are not reported to your employer, then you are liable to pay advance tax on such sources of income.”

Apart from advance tax, before you start filing your ITR, you are required to calculate your total tax liability on the income earned during the previous financial year and deposit any balance tax payable as self-assessment tax.

Mistakes to avoid while paying tax

a) At the time of paying tax, either self-assessment or advance tax, make sure you select the assessment year correctly. Most people find the terms assessment year and financial year confusing. Assessment year is the year immediately following the financial year for which the return has to be filed.

For FY 2017-18, the assessment year would be 2018-19 and for FY 2018-19, the assessment year will be 2019-20. Therefore, if you are making advance tax payments for the ongoing financial year, which is FY 2018-19, you will select AY 2019-20. On the other hand, if you are paying self-assessment tax for the previous FY, i.e., FY 2017-18, then you will select AY 2018-19.

b) Another mistake which is usually made is not selecting the correct codes. At the time of paying tax online, you are required to select radio buttons for different codes representing different types of tax payments. If the wrong radio button/code is selected then the tax payment made by you will not be reflected in your Form 26AS for the correct assessment year. While paying taxes as an individual, always select code (0021) – Income Tax other than companies.

At the time of making an …

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