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Old 9th March 2017, 06:13   #1081
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

There is certainly a very good chance that claiming 80% refund would cause scrutiny.

Just leave that paid tax alone and file it using this new CA's principles going forward.

For fairly minor amounts of tax within a few lakes and advance tax regularly paid the chances of scrutiny are minimal
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Old 9th March 2017, 07:11   #1082
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Originally Posted by WorkingGuru View Post
She's again asking for advice on filing for revised returns, but I don't know much about this & any risks. What should I suggest ?
Wrong place to ask; maybe take a third opinion. If I were in her position, I'd do everything I could to get 80% of tax I paid back as refund. Assuming all my transactions and dealings are legitimate and I have the paper trail to prove it.
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Old 9th March 2017, 07:41   #1083
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by WorkingGuru View Post
She's again asking for advice on filing for revised returns, but I don't know much about this & any risks. What should I suggest ?
My 2p: Tax would be better calculated using Presumptive profits. But she needs to maintain accounts ( let her do this at least going forward).

Regarding refunds, I am not sure if she can file a revised return for AY 2016-17 also at this point. Apparently ( as told by the CA I go to) - we can file revisions only if before 31-July.

Even if this time limit is not correct, your friend is not likely to get any refund for AY 2015-16.

Yes, case liable to get complicated.
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Old 9th March 2017, 11:26   #1084
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

@hserus; I think they have developed good analytic tools to look at the return, and then decide whether it merits a second look. Also, this year they have their hands full with the various disclosures post demonetization. I hear rumours that internally the threshold for detailed scrutiny post demonetization is probably more like ₹10 lakhs, as against the professed exemption of 2.5 lakhs.

Last edited by GTO : 9th March 2017 at 23:21. Reason: Typo
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Old 9th March 2017, 20:46   #1085
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by hserus View Post
There is certainly a very good chance that claiming 80% refund would cause scrutiny.

Just leave that paid tax alone and file it using this new CA's principles going forward.

For fairly minor amounts of tax within a few lakes and advance tax regularly paid the chances of scrutiny are minimal
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Originally Posted by binand View Post
Wrong place to ask; maybe take a third opinion. If I were in her position, I'd do everything I could to get 80% of tax I paid back as refund. Assuming all my transactions and dealings are legitimate and I have the paper trail to prove it.
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Originally Posted by condor View Post
My 2p: Tax would be better calculated using Presumptive profits. But she needs to maintain accounts ( let her do this at least going forward).

Regarding refunds, I am not sure if she can file a revised return for AY 2016-17 also at this point. Apparently ( as told by the CA I go to) - we can file revisions only if before 31-July.

Even if this time limit is not correct, your friend is not likely to get any refund for AY 2015-16.

Yes, case liable to get complicated.
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Originally Posted by Nonstop-driver View Post
Presumptive income is a boon for small trading business, especially where input costs are low.

The CA is right in saying that revising previous year returns might not lead to actual cash refund since the department will try and raise new issues to set it off. But if her receipts and expenses are documented and bonafide, go ahead and revise the return and let the CA represent her in the department. If the refund is substantial, it might be worth the risk.
Thanks for the replies!

So, say the profit actually is 35%, and its deposited in the bank as FDs. Would she still be allowed Presumptive Tax at, a rate of profit of say 12%, under 44AD with the money still in her bank account?

Its a proper legitimate business where she's preserved her pukka raw material bills etc.

Last edited by WorkingGuru : 9th March 2017 at 21:12.
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Old 9th March 2017, 23:45   #1086
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

She's forwarded this video. Maybe it'll help someone looking for more clarity on Section 44AD.

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Old 10th March 2017, 11:17   #1087
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Originally Posted by WorkingGuru View Post
Would she still be allowed Presumptive Tax at, a rate of profit of say 12%, under 44AD with the money still in her bank account?
Yes. Ask the CA to prepare 2 computations, one the way the return was filed and the other under 44AD for all the years for which the return can be revised.

See the potential amount that can be saved and take the call accordingly. Also take in account that interest income from FD will have to be offered to tax.

Won't suggest a revision unless the difference is substantial.
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Old 12th March 2017, 22:10   #1088
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

I cancelled an LIC policy of mine this year and got a refund of Rs 1.07 lakhs. I am yet to invest in a Tax saving scheme/PPF so I just thought Id check if I HAVE to invest this 1.07L in a tax saving scheme Along with this years 1.5L because I cancelled the policy early or is that done and dusted as a part of previous years investments and proceed with investing 1.5L only ? I would appreciate a quick reply as I want to finalize this. 1.5L only or 1.5+1.07L ?
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Old 13th March 2017, 15:12   #1089
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Originally Posted by Mortis View Post
I would appreciate a quick reply as I want to finalize this. 1.5L only or 1.5+1.07L ?
1.5L only. Pls also note that if you have made gains on sale of the LIC policy cud have tax implication as well depending on the type of policy.
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Old 4th April 2017, 10:45   #1090
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Any Chartered accountant out here? Need your opinion.

Wanted to know if you one can claim both HRA and interest on home loans if one is based in the same city. How will this vary for joint owners.

Thanks in advance.

Last edited by moralfibre : 4th April 2017 at 12:16. Reason: Removing post title.
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Old 4th April 2017, 12:39   #1091
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Originally Posted by S_U_N View Post
The NPS that I have through my employer became more interesting yesterday when the finance team indicated that I cannot claim additional 50000 deduction since the amount that is getting deducted from salary is the 'employer' contribution.
So, for the 80CCD (1B) section, I need actually make another contribution of Rs. 50000.

Has any BHPian claimed 80CCD (1B) benefits?
Sir, Sharing a chat excerpt regarding your query but Its just an opinion.

Clarification issued for:- NPS
80CCD(1) - employee contribution

80CCD(1B) - Additional contribution by employee up to maximum of Rs.50,000

80CCD(2) - Employer contribution

As per CBDT circular No.1/2017 dated 02.01.2017
(page no.22)

NOTE:1
If an employee have savings Rs.1,50,000/- under 80C excluding NPS employee deduction, he can avail the amount deducted under employee contribution (80CCD(1)) in 80CCD(1B) up to Rs.50,000.

Example1:
80C - Rs.1,50,000
80CCD(1) - Rs.62,000
He can avail Rs.50,000 out of Rs.62,000 in 80CCD(1B)


NOTE:2
If an employee have savings less than Rs.1,50,000/- and exceeds Rs.50,000 under employee contribution 80CCD(1), he can split the employee contribution in 80CCD(1) and 80CCD(1B)

Example1:
80C - Rs.1,30,000
80CCD(1) - Rs.62,000

He can split Rs.62,000 as Rs.20,000 + Rs.42,000.

Rs.20,000 claimed in 80C (1,30,000+20,000) and Rs.42,000 claimed in 80CCD(1B)

( maximum limit of 80CCD(1B) is Rs.50,000)"


Hope this helps.

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Welcome to Team-bhp!





Do subscribe to this thread -
http://www.team-bhp.com/forum/shifti...es-etc-73.html (All Income Tax Queries (refunds, disputes, rates etc...))

Your advice and suggestions will help a lot of team-bhp members.
Thank you sir for sharing the link. As you know I have not much experience on my hand but still I will try my best to be of some help.

Thanks again.

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Old 4th April 2017, 14:03   #1092
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by redcruiser View Post
Wanted to know if you one can claim both HRA and interest on home loans if one is based in the same city. How will this vary for joint owners.
I think yes, provided the distance between the house and workplace is over a certain threshold. Ideally you should speak to a CA.
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Old 5th April 2017, 11:02   #1093
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Quote:
Originally Posted by redcruiser View Post
Any Chartered accountant out here? Need your opinion.

Wanted to know if you one can claim both HRA and interest on home loans if one is based in the same city. How will this vary for joint owners.

Thanks in advance.
If you have bought a house with the help of a home loan and live in another house on rent, you can claim tax benefit for both. But if the house you bought and the house you live in are in the same city, you should have a genuine reason for not living in the house that you own. The reasons could be that the house you own is too far from your workplace, or the commute is very difficult.
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Old 5th April 2017, 20:51   #1094
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

I've a query guys
I'm salaried and my tax is deducted at source. Post demonetization I deposited around some money which was lying with me to savings account. Now as per my understanding that amount will be added to my taxable income and tax has to be paid as per my tax slab.
What is the last date for paying the tax on the cash deposited? Can I pay the tax at the time of filing my return for 17-18?
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Old 5th April 2017, 20:56   #1095
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Quote:
Originally Posted by archat68 View Post
I've a query guys
I'm salaried and my tax is deducted at source. Post demonetization I deposited around some money which was lying with me to savings account. Now as per my understanding that amount will be added to my taxable income and tax has to be paid as per my tax slab.
What is the last date for paying the tax on the cash deposited? Can I pay the tax at the time of filing my return for 17-18?

If you are able to explain the cash at hand, why would you have to pay tax on that. Get to a CA. Don't think this amount is taxable, unless the amount you deposited cannot be explained.
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