Understand Pvt. Ltd. Annual Returns as per Companies Act, 2013

Under the Companies Act, 2013 Annual return filing for Pvt. Ltd corporations is an essential compliance requirement. This blog wraps important files, due dates, penalties, and overdue expenses related to annual returns submitted for Pvt. Ltd companies.

Annual Return Filing for a Private Limited Company Under the Companies Act, 2013

Required Documents for Filing a Pvt Ltd. Annual Return

Deadline for Annual Return Filing for Pvt. Ltd

A Pvt. Ltd agency must comply with the due dates:

• Form MGT-7 (Annual Return) must be filed within 60 days following the Annual General Meeting (AGM).
• Form AOC-4 (Financial Statements) must be submitted within 30 days following the Annual General Meeting (AGM).
• The Annual General Meeting for Private Limited Companies Must Be Convened Within Six Months Following the Conclusion of the Financial Year.

Penalties and Late Fees for Non-Compliance

Unable to submit an annual return within time has the consequences in the following outcomes-

• Late Fee: Rs 100 consistent with the day until compliance is fulfilled.
• Directors who contravene company regulations may be subject to personal financial penalties of up to ₹5 lakh and may be disqualified from holding directorships in the future.
• Company Penalty: Starting at ₹50,000, the employer may face fines growing based totally on the postponement.
• Statutory measures: Successive non-compliance can lead to the company being marked as inactive or struck off.

Advantages of Timely Annual Return Filing for Pvt. Ltd

• Prevent heavy penalties: Saves the employer from the useless economic burden.
• Ensures compliance with legal requirements, helping to avoid imprisonment and disqualification of directors.
• Business reputation: Builds trust with clients, banks, and government agencies.
• Ensures streamlined Operations: Maintains the records of the organization.

Closure

Annual return filing for Pvt Ltd confirms streamlined business operations, continues credibility, and avoids hefty penalties. Companies must prepare their financial statements well in advance and meet the deadlines to remain compliant with regulations.

Some Income Tax Deductions Still Available Under the NTR

As the new tax regime becomes more common, taxpayers may lose their ability to claim many exemptions and deductions available under the old tax regime. This includes provisions from sections 80C, 80D, 80DD, and 80G.

Must Read: New Tax Regime (U/S 115BAC) Process in Gen IT Software

Exemptions Can be Claimed by the Taxpayers Under These Cases

Rebate Provisions Under Section 87A

Under 87A which is ₹25,000 (for FY 2023-24), the new tax regime permits the taxpayer's rebate. This rebate has been raised to ₹60,00 (to be applicable from 2025-26) in budget 2025.

Read Also: Who Can and Cannot File ITR-U Under 48-Month Extension

Allowances Permitted Both Regimes

Who Can and Cannot File ITR-U Under 48-Month Extension

Income Tax filing: Finance Minister Nirmala Sitharaman in budget 2025 recommends extending the time duration to provide the amended Income tax returns (ITRs) from two to four years. The same adjustment furnishes the taxpayers with more time to address the inaccuracies reveal the ignored income and comply with the tax norms.

How Much Tax Do You Owe? Calculate Now

Points to Cite After Budget 2025

• The time limit extension has been proposed by the government to file an updated return from 24 months to 48 months from the end of the relevant assessment year.
• Section 139(8A) of the Act related to the submission of the updated returns. At present the updated returns could be provided within 24 months from the finish of the pertinent assessment year. The same provisions incentivize voluntary compliance by permitting the payment of an additional income tax of 25% of the total tax and interest due for updated returns submitted within 12 months from the finish of the pertinent assessment year.
• The additional income tax surges to 50% of the total tax and interest amount for updated returns furnished after 12 months but within 24 months from the end of the pertinent assessment year.
• As per the Budget Memorandum, "To further nudge voluntary compliance, it is proposed to amend the said subsection to extend the time-limit to file the updated return from existing 24 months to 48 months from the end of the relevant assessment year. The rate of additional income tax payable for updated returns filed after the expiry of 24 months and up to 36 months from the end of the relevant assessment year shall be 60% of the aggregate of tax and interest payable. The additional income tax subjected to be paid for updated returns filed after expiry of 36 months and up to 48 months from the finish of the appropriate assessment year shall be 70% of the aggregate of tax and interest subjected to be filed."

As per Section 139(8A) of the Income Tax Act, 1961 (hereinafter referred to as ‘IT Act’), every taxpayer whether or not they have filed any original return or belated return or amended return shall be qualified to file an updated income return. These updated income returns could be submitted at any time post-finish of the pertinent assessment year though within 24 months from the finish of the pertinent assessment year in the Form ITR-U. For example, a taxpayer concerned with the fiscal year 2023-24, are able to submit an updated return on or before 31st March 2027.

What Does the Same Direct for the Taxpayers

Now the Finance Bill 2025 has proposed to extend the duration to file the updated tax return. As per which the updated return could be submitted 48 months from the finish of the pertinent assessment year, within the additional tax payment.

The tax varies from 25% to 70% of the tax and the interest liable to get paid consequence in overall heavy tax concern. While the extended duration shall motivate compliance it shall have been effective in maintaining the additional tax at 25% which is enough as a deterrent.

The taxpayers filing ITR-U are mandated to file an additional tax based on the timing of the updated return filing. The additional tax rate varies on the number of months post the finish of the pertinent assessment year-

25% of the tax plus the interest is liable to be filed if ITR-U is filed within 12 months from the end of the relevant assessment year.

If you submit your tax return within 2 years, you'll need to pay half of the taxes owed, plus any interest. If you wait until 3 years, you'll owe 60% of the taxes plus interest. If it takes up to 4 years, then you'll need to pay 70% of the taxes plus interest.

For Filing Your ITR-U Comply with The Below-Mentioned Steps

To update your tax return, follow these simple steps:

1. Download the ITR-U form from the Income Tax Department’s website.
2. Go to the e-filing portal and select "Updated Return (ITR-U)".
3. Fill in all the necessary information, including any extra income you've earned and any additional tax you might need to pay.
4. Make sure to calculate and pay any extra tax before you submit the form.
5. Finally, submit your form and confirm your return using an Aadhaar OTP, net banking, or a Digital Signature Certificate (DSC).

By following these steps, you can ensure that your tax information is updated correctly.

Who is Not Able to File ITR-U:

Taxpayers are not able to submit ITR-U in the below-mentioned cases:

• Have already submitted a revised return.
• Filing a return with zero income or a loss.
• Desiring to revise the refund amount.
• The updated return indicates a decrease in tax liability.
• Subject to investigation or survey under Sections 132, 133A, or 132A.
• Experiencing tax assessment or reassessment.
• No additional tax is owed (offset by TDS or losses).

Avoid Late Fee and Notice: File GSTR-9C Form by Mar 31

A notification has been issued by the finance ministry concerning Goods and Services Tax (GST) payers who do not submit the annual reconciliation statement via the GSTR-9C form.

As per the GST circular, such registered taxpayers have an opportunity not to file any outstanding late fees for failing to file form GSTR-9C for FY 2017-18 to FY 2022-23. To claim the exemption, the pending GSTR-9C must be filed by March 31, 2025.

Who is Required to File GSTR-9C and GSTR-9?

Taxpayers who are registered under GST are mandated to file out the GSTR-9 which is an annual return. The same return brings together all the information that was shared in the monthly or quarterly reports (like GSTR-1, GSTR-2A, and GSTR-3B) throughout the financial year. It comprises information on the outward and inward supplies incurred or received under various tax heads like CGST, SGST/UTGST, IGST, and HSN codes.

Read Also: CBIC Issues GST Notification No. 08/2025, Waiving Late Fees for GSTR-9C Filing Delays (FY 2017-18 to 2022-23)

All registered taxpayers with a total annual income of over Rs 2 crore under GST must file a GSTR-9 form. It's important to note that those with an income below Rs 2 crore can choose whether or not to file this form. There are a few exceptions to this rule as well.

It is important to file the GSTR-9 for regular taxpayers and it furnishes a detailed summary of all the transactions incurred throughout the year.

GSTR-9C is a document that helps compare the annual tax returns filed by businesses with their official financial statements. It's required for businesses that have reported total earnings of more than Rs 5 crore in a year. While it’s not mandatory for those earning less than that amount, they can choose to submit it if they wish. Essentially, GSTR-9C ensures that the reported financial information matches up correctly with what has been submitted to tax authorities.

GSTR-9C Filing Objective

GSTR-9C is a report that compares the annual tax returns submitted by a business with its yearly financial records that have been audited. Essentially, it helps ensure that the information the business reported to tax authorities matches its official financial statements. GSTR-9C includes gross and taxable turnover under the books reconciled with the respective numbers under the consolidation of all the GST returns for an FY. 

Therefore any differences emerging from this reconciliation practice will be reported in this statement, including the reasons for it, and then certified via the taxpayers themselves. The same should get furnished on the GST portal or via a streamlined centre by the taxpayer including additional documents like a copy of the audited accounts and annual return in form GSTR-9.

Tax experts suggested how the new help impact taxpayers-

GSTR-9 and GSTR-9C both hold separate late fees for filing beyond the stipulated due dates. The same notification furnishes relief to the businesses that struggled to fulfill the compliance due dates for multiple financial years particularly at the time of the initial years of the GST implementation and the covid-19 pandemic. 

The same relief can be influential for the case of GSTR-9 has been submitted long back as the exemption has been furnished for the late fee applicable from the filing date of GSTR-9 till the filing date of GSTR-9C given the due GSTR-9C is submitted by 31.03.2025. Also, the same exemption is aligned with the wider objective of the government to ease the GST compliance and support businesses particularly the small and medium enterprises (SMEs) that may not have the comprehensive resources for tax compliance.

The taxpayers are not qualified for a refund under the same notification who have earlier filed the late fees for the late submission of GSTR-9C.

If you earn more than ₹2 crore annually and are liable to pay Goods and Services Tax (GST), it is essential to file your GSTR-9 form. In some cases, you may also be required to submit the GSTR-9C form. To avoid late fees or issues with tax authorities, ensure you file the GSTR-9C form by March 31. For a hassle-free filing process, consider using SAG Infotech Gen GST to submit your GSTR-9C returns efficiently.

GST: Tax Professionals Encounter Issues Due to Errors on GSTN Portal

It is disappointing to note that the GST portal has once again gone into hibernation. As per the official message, The portal filing returns and generating invoices is down —until 06:00 PM today, which before mentioned that the portal will resume operating at 03:00 PM IST.

As per the official notification, "Scheduled Downtime! We are enhancing the services on the site. The services will not be available from 10th Jan’25 12:00 AM to 10th Jan’25 03:00 PM. Kindly come back later! In case of any queries, please call us at 1800-103-4786. We appreciate your cooperation and patience."

Indeed, one could merely imagine the sign of relief from the compliance-weary accountants who have more time to think about questions of life such as whether coffee or tea is the correct fuel for an all-nighter). 

Tax practitioners who are scheduled for their workload are excited to find that they have been gifted bonus hours of anticipation. Thereafter having your entire compliance schedule hinge on the facilitated operation of a single portal is the dream of every professional that comes true what can go wrong?

The Goods and Services Tax Network (GSTN) that handles the portal has ensured that everyone that this downtime is crucial for the system upgrades and performance improvements. As per the founder, the tech team at Infosys can be working 70 hours a week on distinct fixes, all to make the platform faster, more reliable, more user-friendly, and in working condition after all.

Their devotion is respected there is no sarcasm as we do consider that making a stronger online platform for millions of the users in no cakewalk.

The taxpayers were aggrieved as he waited till the last minute to submit their returns or file their dues, and they were liable to get paid. Many people are under the due dates and finding the “Scheduled Downtime” notice at midnight is merely the cherry on top of their compliance sundae. 

The GSTN is on its scheduled maintenance plan, citing that the downtime was declared in advance and if the person has an important task then they may wish to turn back and plan as per that.

If you need help quickly, like when you’re trying to get a last-minute e-invoice, there’s a support line you can call for assistance.

1800-103-4786. "Those with urgent needs are encouraged to monitor the portal closely for any updates or early restoration of services," reads the official advisory.

It is suggested to tax professionals to relish these fleeting hours of forced downtime by compiling documents and executing additional offline tasks that inevitably stack up. Thereafter when the portal comes back online then people anxiously run in a race to log in at once.

Suppose there’s any silver lining in this cyclical spectacle of portal downtime. In that case, the hope is that this maintenance will lead to a much smoother and more enjoyable experience for everyone using the portal. Ideally, we’d like it to be as fast and graceful as a gazelle running through a field, rather than slow and sluggish like a snail crawling up a muddy hill.

Read Also: GST Portal Introduces New IMS Feature to Fix Errors in Invoices

Attention all accountants, taxpayers, and business owners: it's almost time! The clock is ticking down to 3:00 PM, so get ready. Compliance odds are ever in your favor.

Also, the pain of professionals who devoted their time and effort to file in time is respected and for the same consideration, the Ministry of Finance in this situation should think about extending the deadline.

How a Payroll Service Helps Employers Manage Tax Compliance

Many companies, regardless of how efficiently they handle other tasks, often rely on external sources for payroll management. This decision is both practical and strategic, as it saves time and costs while allowing the organization to focus on other critical tasks that drive growth. Another key reason for outsourcing payroll is the complex tax compliance structure. Navigating the intricacies of tax regulations, especially for employers managing a global workforce, often requires the expertise of external professionals.

All About Payroll Taxes

Above all, this is an error-free process. In the worst-case scenario, if any error is encountered, the payroll service is responsible for resolving the mistake and covering any penalties or interest incurred. Payroll services refer to the management of a company’s secure employee records through Gen Payroll Software.

How to Avoid Overpaying Taxes

The tax regime has designed a set of income tax laws that are required to be followed by every taxpayer in the country. Non-adherence may lead taxpayers to legal consequences. Payroll service providers serve employers in proficiently maintaining the database of the employees so that there are no chances of getting stuck in such legal consequences. It is a must to keep the exact records of tax filed and TDS deducted. A payroll service provider takes charge of completing all the paperwork and reduces the risk of fines while saving a lot of tax.

Ensuring Employee Tax Compliance

Managing a payroll is their prime duty. A payroll service provider is well aware of all the payroll tax laws and changes, which the employer may skip. To rescue the employers from unnecessary tax payments, payroll service providers are in the scenario to determine the taxes that are to be deducted on the employee’s part and pay the tax money to concerned authorities. These payroll service providers help companies to save their taxes to a large extent.

How do Startups Benefit From Payroll Service Providers?

Startups work hard to follow tax rules and make sure they pay the correct amount at the right time. With so many responsibilities on their plate, they can’t afford to spend too much time on payroll tasks. This is where a payroll service provider comes in handy. By using their services, startups can manage their taxes more smoothly and free up valuable time and resources.

The software is a comprehensive solution for all human resource management operations in corporations. You can download Gen Payroll software on various free websites, including the official SAG Infotech site.

Know About Income Tax Forms 3CA, 3CB, 3CD & 3CE In India

Under Income Tax rules, certain taxpayers are required to have their accounts audited under Section 44AB. The auditor prepares an audit report and submits it using the prescribed audit form, along with additional required details.

Recommended Audit Forms

The Income Tax Department provides a variety of audit forms for submitting audit reports, including the following:

Know More About Form 3CA

If a taxpayer is engaged in a business or profession and is required to audit their accounts under a law other than the Income Tax Act, such as the Companies Act 2013, they must undergo a mandatory audit. In such cases, Form 3CA is used to submit the audit report.

Read Also: Non-Filing of ITR Leads to Tax Scrutiny: What Next?

Particulars of Form 3CA

Point 1

• It contains basic details of the taxpayers likewise his
• Name, address as well as Permanent Account Number.
• Auditor name (individual/ Firm as the case may be).
• The law under which accounts are audited (eg: Companies Act).
• Date of Audit Report.
• Duration of Profit & Loss Account/ Income & Expenditure Account. (Starting Date & End Date)
• Date of Balance Sheet.

Point 2

A declaration, the Form 3CD has been attached to the audit report.

Point 3

Description of Audit Observations/ Qualifications from the Form 3CD.

Point 4

• Place & Date of signing the audit report.
• Name, Address, and Membership Number of the Auditor.
• Stamp/ Seal of the Auditor.

Details On Form 3CB

In case a taxpayer is running a business or profession he is not required to audit his accounts under any other law.

If a proprietorship entity or partnership firm has a turnover exceeding ₹1 crore and does not opt for a presumptive income scheme, it is not required to have its accounts audited under any law other than the Income Tax Act. In such cases, Form 3CB is used to submit the audit report.

Other than either of the above-mentioned forms, the tax auditor is required to furnish Form 3CD as well. The Form 3CD forms part of the audit report and contains the prescribed particulars.

Particulars of Form 3CB

• Date of Balance Sheet.
• Duration of Profit & Loss Account/ Income & Expenditure Account. (Starting Date & End Date).
• Taxpayers' Name, address and Permanent Account Number as well.
• Address, where the books of accounts are kept
• Address of branches (in case the books are also kept at branches)

Point 3(a)

Audit Observations/ Qualifications/ Comments/ Discrepancies.

Point 3(b)

• Auditors' declaration about-
• All the information and explanations required for the audit have been obtained.
• Confirmation that the books of accounts are being maintained properly at the organisation and branches as well.
• The balance sheet and Profit & Loss Account are true and convey a fair report.
• Tells about the Form 3CD that has been attached with the audit report.

Point 5

Description of Audit observations/ discrepancies from the details prescribed in Form 3CD.

Point 6

1. Place & Date of signing the audit report.
2. Name, Address, and Membership Number of the auditor.
3. Stamp/ Seal of the auditor.

Particulars of Form 3CD

Form 3CD is a detailed statement containing 41 points as particulars. It contains all the information related to several aspects of business and transactions at an appropriate place in the form. The Form 3CD contains a detailed explanation of each point.

Last Date to Get The Audit Report

A taxpayer must obtain the tax audit report on or before October 7th of the relevant assessment year. For FY 2023-24, the deadline to submit the audit report was September 30th, 2024.

Taxpayers required to obtain the 3CE audit report must do so by September 30th of the relevant assessment year. For each financial year, the deadline for submitting the Form 3CE audit report is September 30th.

The auditor will submit the audit report of the taxpayer's account electronically, which the taxpayer will approve before it gets filed.

Penalty for Failing to File an Audit Report

Under Section 271B of the Income Tax Act, the Assessing Officer can impose a penalty if a taxpayer fails to audit their accounts or file the required audit report. The penalty is set at a minimum of 0.5% of the total sales, turnover, or gross receipts, capped at INR 1,50,000. However, if the taxpayer can demonstrate a reasonable cause for non-compliance, the penalty may be waived.

Additionally, SAG Infotech provides Gen BAL software, which aids in the compilation of comprehensive audit reports and the filing of forms 3CA and 3CB via Gen BAL software for compliance. Visit this site to view Gen balance sheet software and related offers.

A Guide to IT Implications on Property Sales in India

The property sale in India has tax implications which are laid on distinct factors such as type of property, holding period, and the residential status of the seller. It draws capital gains tax. Below is its overview-

1. Type of Capital Gains 

The holding period i.e ownership period of the property decides the nature of capital gains

Short-term Capital Gains (STCG) 

If the property has been held for 24 months or less, the gains are considered STCG and levied to tax at the applicable slab rate of the seller.

Long-term Capital Gains (LTCG) 

If the property is been held for more than 24 months then the gains are regarded as LTCG and levied to tax at 12.5% without the benefit of indexation. If on or before 22nd July 2023 the property has been purchased then the seller has the choice to choose 20% taxation with indexation benefit. An individual has the choice to proceed with the more effective option between the two. For those who have purchased the property on or after 23rd July 2023 then the same option is not available.

Important: Easy Explanation on TDS for Property Sale by NRI (New Guide)

2. Applicability of TDS

• If property value surpasses Rs 50 lakh then the buyer should deduct 1% TDS.

• The TDS rate is 20% for the non-resident sellers.

3. Tax Implications for Non-Residents

From property sales, the capital gains by non-residents are within TDS-

• 20% for LTCG

• Higher applicable slab rate for STCG

4. Capital Gains Calculation

Here is the calculation process for the capital gains:-

• Full Value of Consideration: The sale price of the property.

• Less: Indexed Cost of Acquisition/Improvement (for LTCG): Acquisition cost or improvement adjusted for inflation using the cost inflation index (CII). Or actual acquisition cost as per the chosen option.

• Less: Expenses on Transfer: Brokerage, legal fees, etc.

• Net Capital Gains: The taxable amount

• Full Value of Consideration: The sale price of the property.

• Less: Actual cost of acquisition

• Less: Expenses on Transfer: Brokerage, legal fees, etc.

Net Capital Gains: The taxable amount

5. Exemptions from Long-Term Capital Gains

The below-mentioned exemptions are present to save on LTCG tax

• Section 54- The exemption for reinvestment in another residential property within the cited duration
• Section 54EC- The investment in bonds of NHAI, REC, etc within 6 months of transfer
• Section 54F- The applicable for sale of assets beyond residential property if proceeds are invested in a residential house

One year is the cited period for sections 54 and 54f before the date of sale/transfer or 2 years post the date of sale/transfer for the matter of the house being purchased. For the matter when the seller is developing a house then the seller has an extended time that is the seller would required to build the residential house within 3 years from the sale/transfer date.

Note- Under sections 54 and 54F the exemption can be claimed a maximum of up to 10 crores under the amendments drawn by the Budget 2023.

Read Also: What To Do Before Deadline for Filing the IT Audit Report

6. Special Considerations for Sales Value Determination

• Stamp Duty Valuation: If the sale consideration is lower compared to the stamp duty value then the latter is considered to be the sale cost for tax computation.

• Joint Ownership: Each co-owner is levied to tax under the respective share of the gains.

Below mentioned documents need to be carried by the seller for the tax filing objectives-

• Sale/ purchase deeds

• Record of improvement costs made with a receipt

• Receipts of advance received if any for transaction

• If the property is purchased before 1-4-2001, its valuation as of 1-4-2001 by a registered valuer

Step-by-Step Process to Understanding Payroll Migration

In recent years, the definition of payroll has evolved to encompass a comprehensive overview of employee compensation. It now includes a complete list of employees who are to receive a salary within a specific time frame, the total salary amount to be paid, and additional information such as each employee's designation, department, deductions, bonuses, perks, incentives, and leave entitlements. The process of managing the payment of wages to staff within an organization or company is known as payroll processing.

Initially, organizations managed payroll internally, handling it in-house. Over time, as compliance requirements and employee numbers increased, the management of payroll became a more complex and time-consuming task. As a result, many organizations began outsourcing their payroll management to professional accountants. With advancements in technology, this responsibility increasingly shifted to payroll software solutions. Today, payroll software such as Gen Payroll and Online Payroll is widely utilized by both small and large corporate entities.

Payroll Migration is the process of changing from one payroll system to another. This change can happen for various reasons. For example, the current system might not be working well, which can slow down productivity and cause delays in paying employees. On the other hand, a new payroll system may offer better performance and help reduce costs, which can be especially beneficial for small and medium-sized businesses as well as startups.

Many companies choose to completely outsource their payroll management to specialized payroll vendors. These vendors help organizations manage their payroll effectively through dedicated payroll management systems or software.

In some cases, organizations may struggle to transition to new and advanced payroll software on their own, leading them to seek external payroll migration services. Typically, the migration process occurs at the end of a financial year or after a financial quarter, depending on the organization's operational schedule.

Step 1: Validation and Updation of Employee Data

The first step includes the verification and validation of employee-related data. Management makes sure that all the data in the payroll data is accounted for and updated. Based on the size and structure of an organization, the management verifies the details of all the employees and ensures that the data is coherent and all-inclusive.

Step 2: Data Transition

The second step includes the transit of data. The organization or the payroll vendor takes the data from the existing system and stores it at some other place. The data may include the existing Payroll and the current format of Employee Resource Planning. Sometimes, Payroll Vendors upgrade the protocols when the software is outdated/obsolete or relinquish it in the current format. Almost every Payroll services provider uses the cloud-based method

Step 3: Revalidation and Approval

The third step includes the revalidation of transmitted data. The organisation revalidate the correctness of the data which is transmitted. The new platform is examined by the professionals and some selected employees to get their feedback and suggestions. After that, the management verifies & approves the software and permits the employees to use the payroll system.

Step 4: Training

Training is the next step which includes the impartment of knowledge and skills to use the software to the employees of an organisation. Once the software gets a green signal, the training is imparted so that staff can align themselves with the new software platform and use it more efficiently. Payroll software has many benefits for small & big businesses. We are highlighting a few benefits of Payroll mitigation to the vendors, particularly with cloud-based platforms and Payroll.

No Pressure on the Organization

The organisation do not have to deal with any pressure to keep an eye on Payroll and manage it for all its employees. Organisations can give 100% focus on productivity and earn higher profits.

Read Also: SAG Infotech's Gen IT Software Role for Tax Professionals

Vendors Hold Complete Responsibility

Vendors hold complete responsibility for the alacrity, automation and accuracy of the payroll process. Payroll vendors with their innovative approach add value to payroll management.

Easy Access & Accurate Data

Payroll vendors and software provide user-friendly access to employees and guarantee errorless and well-maintained reports & data.

The Efficiency of the Software Can be Easily Measured

This is another advantage of the software that the organization can easily measure the efficiency of the software and witness the apparent results of the software in terms of seamless management productivity and accuracy.

Data Security

Data security is guaranteed with cloud-based systems. Cloud-based systems always have back-ups and they are improbable to crashes of the payroll system which leads to hefty data loss. In this way, cloud-based payroll software elevates the progress and performance of the organization.

Many organizations are transitioning to payroll processing and payroll software for their HR management due to the numerous advantages these modern solutions offer. Compared to traditional methods, payroll software enhances efficiency, accuracy, and overall productivity, providing a significant competitive edge for the organization.

GST Portal Introduces New IMS Feature to Fix Errors in Invoices

The Goods and Services Tax Network (GSTN) has launched the Invoice Management System (IMS) on the GST portal, starting October 1, 2024. This innovative feature aims to assist GST-registered taxpayers in declaring input tax credits (ITC) with reduced disputes. Under the IMS, invoice data submitted by sellers will automatically populate in the buyer's IMS on the GST portal. Buyers can then decide to accept, decline, or keep invoices pending. Accepted invoices will be reflected in the buyer's GSTR-2B as ITC.

However, the implementation of this system has some difficulties. In an advisory released on November 12, 2024, GSTN admitted that as a new segment, there may be intricacies during its initial execution where buyers could inadvertently act incorrectly—whether in accepting, declining, or keeping invoices pending. Such errors could prevent taxpayers from claiming the accurate amount of ITC until resolved. To mitigate this issue, GSTN has suggested a solution for taxpayers.

According to the advisory, during this initial stage of IMS implementation on the GST portal, if taxpayers encounter inaccuracies in their auto-populated ITC or liabilities in GSTR-3B due to mistakes made on IMS, they can edit these details prior to submitting their returns. This allows them to accurately  claim GST ITC or pay the correct tax  based on their actual records.

Experts are advising GST-registered taxpayers to act promptly on the data shown in IMS. An expert emphasized that while taxpayers can accept or reject invoices, they should carefully examine the information presented and take timely action. Otherwise, failure to act may be interpreted as approval of the invoices.

When utilized correctly, IMS could lead to highly accurate ITC claims. However, a single mistake could complicate financial records with inaccurate ITC amounts. Siddharth Chandrashekhar, an advocate at Bombay High Court and panel counsel for CBIC and CBDT, noted that while IMS is intended to streamline processes and enhance transparency, it requires careful use of the platform by the users.

Experts said that IMS is an optional mechanism developed for better management of invoices and related documents. It offers improved organization and tracking while reducing data mismatches. Taxpayers with high transaction volumes are advised to use IMS for its efficiency benefits. However, smaller businesses may need to weigh the advantages against their current practices.

GSTN highlighted that claiming ITC involves interconnected steps and that IMS should not be seen as an added compliance burden but rather as a tool to assist in accurate claims. The system is structured to reduce invoice data discrepancies and enhance transparency.

The advisory further clarified that once suppliers save invoices in GSTR-1/IFF/1A, these will be visible on the recipient's IMS dashboard. The actions taken by recipients will dictate how their GSTR-2B is generated each month.

GSTN also warned that any errors made by recipients during this initial phase could lead to incorrect ITC details being displayed in GSTR-2B and subsequently auto-populated into GSTR-3B. Taxpayers can adjust their actions on IMS until they file GSTR-3B for the relevant tax period to ensure correct ITC figures.

While the advisory aims to facilitate a smooth transition to a fully operational system by allowing manual edits to ITC claims, it remains uncertain how effectively it will protect taxpayers who make genuine errors when processing invoices. The advisory reflects a commitment from the government to improve business operations and support taxpayers in adapting seamlessly to this new system.

Experts indicate that the Invoice Management System (IMS) has a more extensive influence compared to the e-invoicing feature. IMS is crafted as a user-friendly tool proposed for minimizing disputes associated with ITC discrepancies. Unlike e-invoicing, which is typically rolled out selectively, IMS will be available to all taxpayers at once, irrespective of their turnover, thereby broadening its influence among the taxpayers.

GSTN has provided a tutorial on its website explaining that once suppliers enter an invoice in GSTR-1, IFF, or 1A, this invoice will automatically show up on the recipient's IMS dashboard.

Potential User Errors and Their Consequences

GSTN’s advisory stresses that the data for GSTR-2B is produced relied on actions taken within the IMS. Any mistakes made by recipients in their actions on IMS could lead to incorrect ITC details being displayed in their GSTR-2B, which will subsequently auto-populate in their GSTR-3B.

In this scenario, recipients have the option to modify their actions regarding an invoice or record within IMS—changing it from decline to approval or vice versa—and can recalculate their GSTR-2B until they file GSTR-3B for the relevant tax period. This ensures that accurate ITC figures are reflected in their GSTR-3B.

The advisory dated November 12, 2024, admitted that as IMS is newly introduced, recipients may commit errors when it is in early stage. These mistakes can be rectified when submitting Form GSTR-3B. However, it should be noted that this advisory primarily serves to inform users about IMS functionality and does not carry legal weight. Therefore, it remains uncertain whether this guidance will assist taxpayers in justifying genuine errors made when accepting or rejecting invoices and related documents from suppliers against potential notices from tax authorities, noted the experts.

The advisory aims to ensure a hassle-free transition to a fully functional system by providing flexibility for taxpayers during the early implementation stage. By allowing manual adjustments to ITC claims, it seeks to reduce the risk of unintentional mistakes. This strategy highlights the government's dedication to improving business operations and supporting taxpayers in adapting effectively to the new system, according to the experts.

Read Also: GST Invoice Bill Process, 6 Types and Its 11 Components

CA professionals expressed appreciation for GSTN's acknowledgment of potential "mistakes" within the IMS framework, particularly concerning auto-populated data in GSTR-3B. He remains hopeful that this recognition will lead to greater acceptance of High Court rulings allowing corrections in GSTR-3B.

Answering the question- should taxpayers adopt IMS? Chandrashekhar stated that if businesses are willing to leverage technology and conduct real-time reconciliations confidently, IMS could be beneficial. It offers improved visibility and control over ITC claims, potentially reducing tax arguments and disallowances of their ITC. However, for those hesitant about consistently making accurate decisions when accepting or rejecting invoices—or if suppliers frequently amend their records—using IMS might seem risky.

What To Do Before Deadline for Filing the IT Audit Report

November 15, 2024, is the due date to file an Income tax return (ITR) for FY 2023-24, for those assessee who are within an audit of income tax and the other designated assesses. It is crucial to mark that this is already an extended due date as the original due date was October 31, 2024. No announcement was there to date for any additional extensions to the same amended due date which makes it not happen that the government wishes to determine to push it back again under the existing situations.

What Pre-requisite You Can Do Before Filing ITR by November 15, 2024?

The ITR filing process is related to the submission of a tax audit report. The experts stress that the information furnished in the tax audit report is required to be directed in the ITR, emphasizing the interconnected nature of the two. Hence before ITR filing it is significant to provide your tax audit report.

It is the responsibility of the taxpayer liable for the audit of income tax to furnish the information of the tax audit in his ITR (along with the date of furnishing the audit report, acknowledgement number of audit report, etc.) This information could not be submitted in the ITR, till the submission of the tax audit report. Hence a tax audit filing is required to precede the ITR filing of the taxpayer.

The ITR form does not get uploaded if you skip the tax audit report filing. The reason behind this is the use of the ITR forms needs the date of uploading the tax audit report. The returns do not get uploaded if the field has not been filled.

September 30, 2024, was the due date for the submission of the tax audit report for FY 2023-24 which was subsequently extended to October 7, 2024. If you skipped the due date then ensure to provide the tax audit report before ITR filing. Skipping to do so can put you at risk of two breaches of the law, not submitting the ITR and skipping the submission of the tax audit report.

If the assessee does not file it before the due date of furnishing the tax audit report (originally September 30, 2024, extended to October 7, 2024) then it is suggested that they are required to file the tax audit report via filing the penalty (if charged) and then provide the ITR by November 15, 2024. Unable to do the same shall consequence in the ITR being considered as defective. A penalty will charged for a late tax audit filing report which can be up to Rs 1.5 lakh or 0.5% of total sales, whichever is lower.

It needs to be noted that the income tax department has the authority to impose a penalty for late tax audit report filing. Such penalties are not automatic but may be applicable in the scrutiny of the tax department.

If the assessee is not able to provide a needed tax audit report within the deadline (October 7, 2024), then they are qualified for the extended ITR due date filing of November 15, 2024. For those who have furnished their audit report within the said time the same extension applies to those only. Losing the due date of the audit shall result in losing the November 15 extension, and any late filing shall be within the penalties along with the fine u/s 271B and interest on any unpaid taxes.

Which Assessees Must E-File ITR?

The below-mentioned assessees are required to submit the ITR by November 15, 2024, for FY 2023-24:

• A company (e.g. an Indian company, or a foreign body corporate including a foreign company)

• Assessee whose accounts are required to be audited within any statute (e.g. under the Income Tax Act or Limited Liability Partnership Act or co-operative Societies' Act etc.).

• Partners of a firm whose accounts are required to be audited within any statute.

But for the matter of the transfer pricing, i.e. if the assessees secure any international or specified domestic transaction, the ITR filing due date shall be 30 November 2024.

Due Date of ITR Filing for Transferring Price of Tax Audit Matters

The assessees who are in the transfer pricing tax audit matters do not need to worry since the due date of ITR filing of November 15, 2024, is not applicable to them.

Read Also: SAG Infotech's Gen IT Software Role for Tax Professionals

The assessees are required to provide a transfer pricing audit report in Form 3CEB by 31st October 2024 who are involved in the transactions with the overseas group companies for the FY 2023-24. 30 November 2024 is the due date for ITR filing for this assessee.

If till now the transfer pricing report has not been filed then the same is required to be provided as some filing information from Form 3CEB is needed in the ITR. Skipping Form 3CEB transfer pricing tax audit due date can result in a penalty of Rs 1 lakh with an additional 2% of the transaction value for international transactions with the pertinent parties. Unable to attain the  30 November 2024 due date for ITR will prevent the assessee from taking the losses forward for FY 2023-24.

What Shall Take Place If You Are Unable to Submit the ITR?

If you were needed to submit your ITR by November 15, 2024, however unable to perform the same shall required to provide a belated ITR while filing a penalty fee.

If the assessee cannot submit the ITR by November 15, 2024, they can provide a belated return by December 31, 2024. The assessee will be within specific outcomes that comprise the interest u/s 234A and 234B. u/s 234F a penalty will be charged which can vary between Rs 1000 to Rs 5000 as per the taxable income.

If you are providing the belated ITR post-filing the tax audit report on or before the due date then you may face the below-mentioned outcomes-

The assessee shall be required to bear the outcomes for the late return filing specified below-

• Late filing penalty of up to Rs 5,000
• No carry forward of losses allowed

An additional aspect is to mark that even with the extension in place the interest u/s 234A & B will still apply in matters where there is a tax obligation.

Brief Summary of Udyam Registration: Importance, Eligibility, and Process

For your business, the Udyam Registration certificate is the only solution that would assist your businesses to have the advantage of distinct government initiatives. The blog is concerned with the importance, eligibility, and process of Udyam registration.

What Does the Term Udyam Registration Signify?

What is the Reason for the Importance of Udyam Registration?

Udyam Registration Eligibility

Udyam Registration Benefits

1. Borrowers receive collateral-free loans from banks
2. Licensing, approvals, and registrations are accessible
3. Special considerations are furnished before the international trade
4. The government proposes concessions on distinct bills, including electricity bills
5. Organizations registered with Udyam get eligible for the Credit Linked Capital Subsidy Scheme
6. ISO certification fees Reimbursement
7. Safeguard from late payments or supplied services
8. Bank loans with subsidies and lesser interest rates
9. Production/manufacturing sectors secure special reservation policies
10. Exemption of Direct tax laws rule
11. Subsidy on NSIC performance fees and credit rating
12. Barcode registration subsidy
13. Patent registration subsidy

What is the Method to Apply for Udyam Registration?

Required Documents

• Aadhaar Card Copy
• PAN Card Copy
• GSTIN Details
• Company Contact information
• Bank Account Details
• Income Tax Return Statements
• Information on the Units of the Company
• Individual Category
• Specify the Disability (if any)
• Information on the Desired Status
• Information About Employees

Udyam Registration Validity

Closure

How Can the Govt Simplify TDS Rules for Buying a NRI House

Purchasing a property in India entails navigating through intricate tax requirements, particularly when dealing with a Non-resident individual (NRI) as the seller.

For resident individual buyers, it is mandatory under the law to withhold tax from the payment made to the seller. However, if the seller is a tax resident in India, the Tax Deducted at Source (TDS) compliance is applicable only if the sales consideration exceeds Rs 50 lakh. In such instances, the buyer must deduct tax at a rate of 1% at the time of payment.

The tax department has introduced a streamlined compliance process, involving the submission of a single Form as a tax payment challan-cum-return under the buyer's Permanent Account Number (PAN). This eliminates the need for a Tax Deduction Account Number (TAN) for the buyer or a separate TDS return filing.

Conversely, when acquiring property from an NRI seller, the TDS compliance requirements become more intricate. In addition to this complexity, the buyer is obligated to deduct tax at the applicable income tax slab rates before making the payment to the NRI seller.

Complete Tax Compliance Procedure When Acquiring Property from an NRI Seller

Obtaining TAN (Tax Deduction Account Number): Under section 203A of the Income Tax Act a buyer is required to have a TAN before TDS deduction. TAN is a 10-digit alphanumeric number. To receive a TAN a person is required to submit the Form online or offline at the Tin Facilitation Center (TIN - FC) handled through the NSDL.

Deposit of tax deducted at source: The buyer must deposit the TDS deducted to the government treasury as payment on or before the 7th day of the subsequent month in which the TDS was deducted from the seller.

E-TDS return filing: Upon completing the TDS deposition, the purchaser is required to submit an e-TDS return (Form 27Q) within the stipulated deadline. This e-TDS return is filed quarterly, with the last day of the month succeeding each quarter's conclusion for the initial three quarters. For the final quarter, the return must be filed by May 31st of the subsequent year. The purchaser has the option to electronically file the e-TDS return after authentication through EVC or a digital signature. Alternatively, an offline TDS return can be lodged at a TIN facilitation centre.

TDS at the Time of Payment: The buyer is required to deduct the TDS at an applicable income tax slab rate (which might work out to be more compared to TDS on the resident seller) while making payments to NRIs.

Issue TDS Certificate: Following the submission of TDS returns, the buyer must furnish a TDS certificate (Form 16A) to the NRI seller within 15 days from the e-TDS return's due date.

Failure to adhere to this process, discrepancies, or any delays may subject the buyer to penalties and interest.

Furthermore, in the context of purchasing a property from a resident seller, TDS compliance is mandatory only if the sales consideration exceeds Rs 50 lakh. However, when dealing with a non-resident seller, there is no such threshold limit for tax deduction. This implies that even if the sales consideration is less than Rs 50 lakhs, the buyer is still obligated to comply with TDS provisions when transacting with NRI sellers.

The acquisition of a property is a non-recurring transaction, and individuals may find themselves compelled to obtain a TAN solely for complying with TDS requirements when purchasing a house from a non-resident seller. In many instances, this TAN may remain unused after the transaction, rendering it inactive and contributing to a growing number of inactive TANs in the income tax system.

Furthermore, the intricacies of TDS compliance often lead individuals to seek assistance from tax experts, resulting in additional expenses. The process of acquiring property from an NRI seller is inherently more complex and time-consuming compared to transactions involving a resident seller. This complexity deters potential buyers from engaging in property transactions with NRIs.

To promote ease of transactions and alleviate compliance challenges in property dealings with NRIs, the government should consider simplifying the TDS compliance process for individual buyers. This could involve aligning the TDS compliance requirements for individual buyers when dealing with both resident and NRI sellers, fostering a more straightforward and uniform approach.

The government should eliminate the requirement for buyers to obtain a TAN when dealing with NRI sellers and allow them to utilize the PAN-based challan-cum-return form, similar to the process for purchasing property from resident sellers. By implementing this simplification, the government can substantially alleviate the burden on buyers involved in acquiring property from NRIs. 

This streamlined approach would contribute to a more efficient and uncomplicated process, promoting the seamless purchase of property from NRIs, comparable to transactions with resident sellers. SAG Infotech's Gen TDS return filing software is an efficient tool that enables you to accurately calculate your tax deductions, exemptions, and house property allowances with utmost ease. 

With this software, you can also effortlessly compute your TDS amount, ensuring that you comply with the regulations and laws related to TDS filing.

In What Way are the Gains from a Property Sale Taxed for NRI in India?

Non-resident Indians (NRIs) selling property located in India are liable to pay capital gains tax. When an NRI sells property in India, the buyer is required to deduct TDS under Section 195 of the Income Tax Act of 1961. It is important to note that, unlike Section 194IA, the tax deduction rate is not fixed at 1% in this scenario.

The income tax regulations for NRIs concerning capital gains in India are outlined as follows:

Taxation of Short-term Capital Gains (STCG)

• When an NRI sells or transfers a capital asset like stocks, securities, or immovable property which is been held for less than 24 months, any resulting gain is deemed a short-term capital gain.

• Under the brackets of income tax for the NRIs, the short-term capital gains are to be taxed at applicable rates.

Taxation of Long-term Capital Gains (LTCG)

• When a Non-Resident Indian (NRI) disposes of a capital asset held for 24 months or more, any resultant profit is categorized as a long-term capital gain.

• In the case of listed securities such as stocks and equity-oriented mutual funds, a 10% long-term capital gains tax is levied without the benefit of indexation if the gains exceed INR 1 lakh in a financial year.

• For immovable property and other assets, the long-term capital gains tax is generally imposed at a rate of 20%, accompanied by indexation benefits. However, the specific rates and regulations may vary depending on the type of asset.

Indexation Benefit

• The indexation benefit enables the modification of the acquisition cost of an asset to account for inflation during the holding period, thereby mitigating the taxable capital gains.

• In the case of long-term capital gains related to assets other than listed securities, the indexed acquisition cost is determined by applying the Cost Inflation Index (CII) as published by the Income Tax Department.

Tax Exemptions and Deductions

• Section 54 offers a waiver when selling a residential property and utilizing the proceeds to invest in another property.

• Section 54F provides an exemption from capital gains tax for the sale of any asset, excluding residential property, if the proceeds are reinvested in a residential property.

• Section 54EC allows a deduction for investing in specified bonds within a designated period to qualify for the exemption from capital gains tax.

Tax Deducted at Source (TDS)

When a Non-Resident Indian (NRI) sells property in India, the purchaser is obligated to withhold Tax Deducted at Source (TDS) on the sale proceeds according to the applicable rates. The TDS rates for NRIs may differ based on the property type and the sales amount.

Frequently Asked Questions on TDS on Sale of Property by Non-Resident (FAQs)

Q1: Which information should be furnished to the Tax Officer?

The Tax Officer will need information including the property's purchase price, the date of acquisition, and any expenses related to renovation or construction.

Q2: What occurs in case more TDS is deducted than the actual tax liability?

If there is an excess deduction of TDS, the seller has the option to claim a refund for the surplus amount during the process of filing their Income Tax Return.

Q3: Which certificate should the buyer provide to the seller?

The buyer should furnish Form 16A to the seller once it is available. This form acts as a certificate for the TDS deduction carried out by the buyer.

Q4: How should TDS be handled in the case of multiple payments for the property?

In instances of multiple payments, TDS should be deducted at the time of each payment and not solely during the property registration process.

Q5: What are the consequences if TDS is incorrectly deducted or not deducted at all?

If TDS is either wrongly deducted or not deducted at all, the Income Tax Department will not take any action against the seller. Instead, the department will pursue the buyer to fulfil the required TDS deposit. If the buyer fails to deduct TDS or deducts an insufficient amount, the Income Tax Department will recover the TDS from the buyer.

Non-Filing of ITR Leads to Tax Scrutiny: What Next?

Taxpayers must file an income tax return (ITR) in response to any inquiry notice sent by the Income Tax Department. If you don't, the case will be taken under investigation. The Income Tax Act's section 142(1) authorises the issuance of the inquiry notice, which is typically sent in cases where a taxpayer has not filed their tax return or to obtain further preliminary data regarding a specific detail, such as bank interest or long-term capital gains or losses from the sale of real estate. You must reply to these notifications to avoid any fines or legal repercussions.

Comprehensive guidelines have been prepared by the Central Board of Direct Taxes (CBDT) to identify income tax filings requiring thorough examination. The purpose of these recommendations is to guarantee scrutiny for correctness and adherence to tax regulations. By applying strict scrutiny, CBDT can find fraud or discrepancies that were missed in the initial assessment, protecting the tax system's integrity and imposing uniform requirements on all taxpayers.

The guidelines issued for the present fiscal year delineate the selection process and meticulous scrutiny to be conducted for various scenarios. These encompass survey cases, search and seizure cases, instances of tax evasion, and cases where no income tax return was filed following an inquiry notice. Offering a comprehensive framework, these guidelines ensure equitable and efficient handling of such cases.

Read Also: IT Due Dates for May 2024 for Forms 61A, 3BB, 10BD, 49C and 10BE

The aforementioned material has details about numerous court cases about matters like non-registration or revocation of registration under various legal provisions. Section 12A/12AB, which deals with the registration of charitable organisations to qualify for tax benefits, is one such example.

Furthermore, if specific financial thresholds are satisfied and a taxpayer's income was previously subject to an increase on a recurrent issue, the I-T return will be subject to mandatory inspection criteria. The guidelines delineate the distinct functions and accounts of the National Faceless Assessment Centre as well as the I-T officers.

A famous tax consultant said there is no substantial change in the criteria for mandatory tax scrutiny as compared to the present scenario. In accordance with the standards, the notice must be sent by June 30, 2024, for any income tax returns filed in FY 2023–2024.

Under some circumstances, a comprehensive review, referred to as complete scrutiny, is carried out to make sure the taxpayer has accurately declared their income and has paid the necessary taxes. Through this procedure, it is ensured that the taxpayer has not made any mistakes or omissions on their income tax forms and that they have met all legal requirements.

IT Due Dates for May 2024 for Forms 61A, 3BB, 10BD, 49C and 10BE

Remembering the specific tax compliance schedule for May month 2024 is crucial. It is essential to follow the designated tax deadlines to prevent penalties. By being aware of and adhering to the designated income tax return filing due dates, one can prevent late filing penalties and interest charges. Furthermore, it's critical to remember that Forms 3BB, 49C, 61A, 10BD, and 10BE must all be submitted by the deadline.

Tax form filing deadlines vary for each taxpayer based on their category, specific forms required, and potential granted extensions. Here are the outlined due dates for filing tax forms to provide clarity.

SAG Infotech blog post provides needful information about TDS (Tax Deducted at Source). This is where you can locate a wide range of news stories and articles that offer in-depth analysis of the tax system. The income tax agency enforces the statutory TDS tax deduction procedure. Understanding whether goods and services are subject to taxes as well as where the deduction of taxes is required is crucial. Our portal is a one-stop shop for all your information needs about TDS. To facilitate your navigation of the intricate tax system, we strive to keep you informed about the most recent advancements in the TDS system.

This website offers a selection of news stories and articles that discuss TDS (Tax Deducted at Source) for the benefit of taxpayers.

SAG Infotech's Gen IT Software Role for Tax Professionals

Tax professionals play a vital role in navigating the constantly changing realm of taxation, providing essential guidance to individuals and businesses in understanding the intricate tax code. To excel in this demanding industry, tax professionals require effective tools and resources that enable them to deliver precise, efficient, and trustworthy services. This is where state-of-the-art income tax software, commonly known as Gen Income Tax Software, comes into the picture.

Crucial Role of Gen Income Tax Software for Tax Professionals

In this article, we will delve into the critical role played by Gen I-T Software for tax professionals and examine how it has transformed their working methods.

1. Simplifying Tax Practice

Tax professionals frequently face the daunting task of managing a multitude of documents, forms, and regulations, which can be overwhelming and time-consuming. The Software provides these professionals with a streamlined and well-organized platform for efficient tax preparation and filing. By automating routine tasks like data entry, tax liability calculations, and form completion, the software not only saves time but also minimizes the risk of human errors, ensuring accurate tax returns for clients.

2. Regular Tax Compliance Changes & Updates

The tax code undergoes frequent changes and updates, requiring tax professionals to stay informed to provide the most precise and up-to-date advice to their clients. The best Income Tax Software offers real-time updates, ensuring compliance with the latest tax laws and regulations. It serves as a powerful tool for tax professionals to keep their clients in line with the law, minimizing potential tax liabilities or penalties.

3. Boosted Precision

Precision is of utmost importance in the realm of taxation. Even a single error on a tax return can have severe consequences for both clients and tax professionals. Gen I-T Software utilizes advanced algorithms and built-in error-checking mechanisms to assist tax professionals in preparing error-free returns. This reduces the likelihood of audits and ensures that clients receive the deductions and credits they are entitled to.

4. Data Security of Client

Tax professionals manage sensitive and confidential clients' data. It also prioritizes data security by providing features such as encryption, secure data storage, and protected transmission of client data. This infuses confidence in clients, assuring them that their personal and financial information is safe and fostering trust and confidentiality between clients and tax professionals.

5. Systematic Collaboration

Alliance with clients is an integral aspect of the work performed by tax professionals. It includes online collaboration tools that enable tax professionals to engage with clients, share documents, and gather necessary information securely and conveniently. This streamlines the communication process and ensures that tax professionals have all the pertinent data required to prepare accurate tax returns.

6. Flexibility and Adjustability

Tax professionals provide different clientele with unique needs. Gen Income Tax Software is designed to be scalable and flexible, allowing tax professionals to cater to the specific requirements of their clients. Whether dealing with individual taxpayers, small businesses, or large corporations, this software can adapt to the complexity of the tax situation, making it a versatile tool for tax professionals.

7. Maintain Good Record

Maintaining proper records is crucial for both tax professionals and their clients. The Software facilitates efficient record-keeping by storing past returns and relevant documents in an organized digital format. This makes it easy to access and review previous returns, ensuring that clients remain compliant with tax laws and regulations.

8. Low-cost Solutions

In the past, tax professionals relied on manual processes and extensive paperwork. It also provides a cost-effective alternative by reducing the need for physical office space, manual record keeping, and excessive paperwork. The time and cost savings offered by this software allow tax professionals to allocate their resources more efficiently.

9. Competitive Advantage

The tax industry has various players and therefore the tax professionals should vary themselves to draw and maintain the clients. By providing distinct advanced features, efficient procedures, and effective outcomes the Gen I-T software furnishes a competitive edge to its tax professionals.

10. Opting for remote working

The global landscape has witnessed a significant shift towards remote work, and the tax industry has followed suit. Gen Income Tax Software, often cloud-based, empowers tax professionals to work from any location with an internet connection. This adaptability is invaluable, particularly in situations where in-person meetings and office work may not be feasible.

Certain benefits of Gen IT software

• E-Filing of Different ITR Forms 1 to 7 is Open in XML/JSON Format

• Utility to Import AIS, TIS & Form 26AS from Portal via Auto/zip/Text/Excel Mode

• Automatically computes the Interest under sections 234B, 234A and 234C

• The utility of Advance Tax Estimation is also available in the Software

• Keeping of Depreciation Chart under I-T and Books/Companies Act, import/export via Excel, etc.

• Streamlines Automatic Selection of Various Return Forms viz ITR-1 to ITR-7 according to pertinent income Sources.

• Tax Assessment utility is also available in the Software

Closure

Gen Income Tax Software has revolutionized the role of tax professionals in several crucial ways. It simplifies tax preparation, enhances accuracy, provides real-time updates, and prioritizes data security. It facilitates efficient collaboration with clients, adjusts to diverse tax scenarios, and improves record-keeping. Furthermore, it offers cost-effective solutions, a competitive advantage, and the flexibility to embrace remote work.

Read Also: Some Income Tax Deductions Still Available Under the NTR

In the current ever-evolving tax environment, tax professionals must harness the power of Gen I-T Software to deliver the best possible service to their clients. Embracing these technologies not only saves time and resources but also helps tax professionals build a reputation for accuracy, efficiency, and reliability, ultimately benefiting both their clients and their professional growth.

Gen Complaw Compliance Software for LLP & ROC Forms

Gen CompLaw ROC Software is a comprehensive solution for filing MCA V3 e-Forms, XBRL, Resolutions, Minutes, Registers, and MIS reports. It is the best tool to take away your hassle and can simplify the intricate process of filing these forms. Businesses can ensure correct and timely XBRL E-Filings adhering to the Companies Act, 2013 statutory compliance. Along with its user-friendly interface, its quick response makes it stand out from others tackling important tasks.

Starting on January 23, 2023, Where Should I Submit Company Incorporation Forms?

What Are the Most Notable Differences Between MCA V2 & V3?

GST Invoice Bill Process, 6 Types and Its 11 Components

In India, businesses are obligated to adhere to the Goods and Services Tax (GST) regulations, necessitating the generation of GST Invoice Bills for all taxable supplies and transactions. These GST Invoice Bills serve as official documents that comprehensively document transaction particulars, encompassing details such as the nature of the supplied goods or services, their quantity, value, and applicable tax rates.

Simple Definition of GST Invoice Bill

When supplying goods or services to clients or consumers, a registered supplier may issue a GST invoice bill as an official document. Registered vendors can produce this important document by using reliable billing software available on the market. Its crucial function is to make it easier to determine the tax obligations of both the transaction's source and beneficiary. A valid invoice is crucial in the context of the GST system because it is a requirement for claiming input tax credit (ITC), a mechanism that enables firms to deduct the tax they paid on purchases from the tax they are required to remit on sales.

Types of GST Invoice Bills

A credit note is issued when there is a reduction in the supply value or when goods or services are returned. Billing software simplifies the issuance of credit notes, which adjusts the value of the original invoice and reduces the corresponding tax liability.

Important Elements of GST Invoice Bill

What is the Method to Build the GST Invoice Bill?

How to Make Sure That No Extra TDS is Withheld from Income

Many taxpayers commonly encounter Tax Deducted at Source (TDS) when they invest in different financial instruments. This is particularly relevant in cases involving interest and dividends, as TDS is applicable once the income surpasses a certain threshold. This situation can be worrisome for individuals with no taxable income, as they must later seek refunds from the tax department. Fortunately, there is a solution to prevent TDS by submitting either Form 15G or 15H. 

Step-by-Step Guide to Navigate No Additional TDS is Deducted on Income 

Below are the steps you can check so that no more taxes will be deducted from your income:

Non-Taxable Earnings

There are numerous individuals who may not have taxable earnings in a given year. This group includes senior citizens, who may not have substantial income but may have investments. It also encompasses housewives who lack a regular income but have saved and invested money. Some people may temporarily fall into this category, such as those taking a short work break.

The issue for these individuals is that if they encounter Tax Deducted at Source (TDS), they won't receive the withheld money until the end of the financial year after filing their return, which can be a lengthy process. Therefore, it is essential to prevent TDS altogether to avoid this inconvenience.

Limits of TDS Threshold 

There exists a specific threshold beyond which income from a specific source becomes subject to TDS (Tax Deducted at Source). These thresholds vary depending on the type of income and can also differ based on the taxpayer's category.

For instance, the threshold for dividend income is Rs 5,000, and TDS applies once this limit is surpassed. In the case of bank interest, the threshold stands at Rs 40,000 for regular individuals but increases to Rs 50,000 for senior citizens. These threshold limits hold significance because TDS becomes applicable to all when these limits are exceeded.

TDS Forms 15G and 15H

The initial point to grasp is which Form is applicable to specific groups of individuals. TDS Forms 15G and 15H are the forms utilized to ensure the avoidance of TDS. These forms are designed to prevent TDS for individuals who do not have taxable income.

Form 15G is intended for individuals under the age of 60, while Form 15H is designated for senior citizens, meaning those aged 60 or above.

It's crucial to note that the form must be submitted to the entity responsible for tax deduction. The key criterion is that the individual's annual income must be below the basic exemption threshold, and the tax liability on this income should be zero. If even a small amount of tax is owed on the income, these forms cannot be submitted.

Attributes

Several crucial details should be considered when submitting this form. It's important to note that this form needs to be submitted annually, so if one was submitted in the previous fiscal year, it will not be valid for the current one. Consequently, a new form must be submitted for the current financial year.

Furthermore, when dealing with fixed deposits, the form must be submitted to the branch where the deposit is held. For dividend-related matters, it should be provided to the registrar. In most cases, the registrar will communicate through email with shareholders before distributing dividends, explaining how to submit the form.

In certain locations, there may be an option to submit the form online; otherwise, it must be physically delivered. The form must include the Permanent Account Number (PAN) and it should also contain details about income and investments. Accurate completion of the form is a crucial step in the overall process.

Important Factors to Consider Before GST Refund Process

Learning about distinct sorts of taxes might be a little hectic. For facilitating India’s tax system, Goods and services taxes (GST) are proven to be superior through integrating multiple levies in a single system. GST offers a number of benefits, including the ability for individuals and corporations to get refunds for overpayments. Taxpayers can recover any overage costs they paid for GST obligations using the GST refund procedure. Therefore, if you overpaid GST, being aware of the GST refund procedure will help you get back your proper earnings.

Step-by-Step Explanation of How to Request a GST Refund

Mentioned below is the summary of all the important factors that would be considered when requesting for GST Refund: 

File GST RFD-01 Form: Consider GST filings as summaries of all the cash you have received and paid out. As a result, you must prepare to complete a form known as RFD-01 on the GST website in order to get the refund. It's similar to a unique form for refunds. Once you've logged in to your GST account, select "Services," "Refunds," and then "Application for Refund." Select the appropriate justification for your refund and complete the GST RFD-01 Form.