Tips & Tricks on Taxation

BLOG on Income Tax Management for - AY 2022-23 & 2023-24

Q-16. Which Assets are exempted from Wealth-Tax.

The following Assets are exempted from Wealth-Tax:

1. Property held under a trust or other legal obligation for any public purpose of a charitable or religious nature in India.

2. Where the Assessee has interest in the property of HUF in which he is a member.

3. Assets and money brought into India by person of Indian Origin or Indian Citizen, from a foreign country with an intention to settle down permanently in India. For this purpose, amount standing to the credit of the person in Non-Resident (External) Account in any Bank, in India is deemed to be the amount brought in by him into India on that date. Above exemption is available for 7 successive Assessment Years.

Q-17. What are the Due Dates to File your Returns to Avoid Penalty?

SN	Description	Due Date
1.	Salaried Employees	July, 31
2.	Business Class-Non-Company Assessee Whose accounts need not be compulsorily audited	July, 31
	b) Whose accounts required to be compulsorily audited	Sep, 30
3.	Co-operative Societies
4.	Trusts/ Charitable Institutions claiming exemption u/s 11
5.	Companies

Q-18. Depreciation Rates Under Income Tax Act. ?

DEPRECIATION RATES UNDER INCOME TAX ACT
1.	Buildings used for Business purpose	10%
2.	General Plant & Machinery	15%
3.	Furniture & Fittings	10%
4.	a) New Commercial Vehicles used for hiring, purchased between 1-10-1998 and 31-03-1999	40%
	b) Commercial Vehicle	30%
	c) New Commercial Vehicles purchased between 1-04-2001 and 31-03-2002	50%
	d) New Commercial Vehicle which is acquired On or after 1-01-2009 but before 1.04.2009 and is put to use before 1.10.2009 for the purpose of business Or professions	50%
	e) Cars other than those used in a business of running them on hire	15%
5.	Computers and Computer Software	60%

Q-19. Which Persons should Own or Obtain PAN
( Permanent Account Number)?

1. Every person whose total income exceeds the taxable limit.

2. Every Business/Profession whose total sales, turnover or gross receipts exceed Rs.5 Lakhs.

3. Every person shall quote his PAN in all documents pertaining to:

a. Who sells/purchases any immovable property worth Rs. 5 Lakhs or more.

b. Who sells or purchases Motor Vehicle or Vehicle which requires registration.

c. Who wants to open Time Deposit A/c with Banks/Post Offices exceeding Rs. 50,000.

d. Who wants to deposit amount exceeding Rs. 50,000 in Bank & Post-Office Savings Bank.

e. Who sells or purchases Securities exceeding Rs. 1 Lakh.

f. Who opens a Bank Account * & Demat Account.

g. Who makes payment to Hotels & Restaurants against bills exceeding Rs. 25,000 at a time.

h. Who wants to purchase DD/Pay Order/ Banker’s Cheque by payment of cash aggregating Rs. 50,000 or more during any one day from a Bank.

i. Payment in cash exceeding Rs. 25,000 in connection with Foreign Travel.

j. Payment of an amount of Rs. 50,000 or more to buy Mutual Fund, Shares, Debentures or Bonds.

k. Buying high-end consumer goods

* Those not having PAN can submit a simple declaration in Form No. 60/61.

Any person who has not been allotted PAN and who makes payment in cash otherwise than by way of Nc payee cheque or draft or issued by any Bank in respect of any of the above listed transaction, should file a simple declaration in Form No. 60 giving the particulars of the transaction.

Q-20. What is Self-Assessment ?

Under Self-assessment scheme, before filing income tax return, an assessee has to pay self-assessment tax.

Self Assessment tax payable = Tax payable on total income as per return (-) Advance tax paid (-) TDS, if any + Interest payable for delay in furnishing the return for default or delay in payment of advance tax.

Wet. 1/6/2004, the Income Tax Dept. has introduced a simplified system for payment of taxes called Online Tax Accounting System (OLTAS). The salient features of the new system are:

a) Four copy challans have been replaced by single copy as under:

Challan No. 280 — For payment of Income tax (advance tax/ self assessment tax/ tax on regular assessment) and wealth tax by all categories of taxpayers.

Challan No. 281 — For Tax deducted at source.

Challan No. 282— For other Direct taxes.

b) Tax payer’s counterfoil: The challans have a taxpayer counterfoil at the bottom, which will be returned by the bank duly stamped and receipted.

c) Challan Identification No.:

The bank will give a stamped acknowledgement on the taxpayer’s counterfoil mentioning the name of the bank, branch, the 7 digit BSR code of the bank branch, the date of deposit (DD/ MM/YY) and a running serial no. of the challan (5 digit) collectively called the Challan Identification Number (CIN).

d) Tax payers will mention the CIN on their income tax returns.