FAQ-Gen-IT

FAQ-Gen-Income Tax (IT)

Answer: This software complies all the provisions of the Income Tax Act, 1961. The Main features are listed as below:-

  • Preparation of Computation.
  • Filling of online Returns.
  • Apply for PAN.
  • Apply for correction of PAN.
  • Import TDS details from Form 26AS.
  • Reverse Tax Calculator.

Answer: It is a tax imposed by the Government of India on anybody who earns income in India. This tax is levied on the strength of an Act called Income tax Act which was passed by the Parliament of India.

Answer: Income earned in the twelve months contained in the period from 1st April to 31st March (commonly called Financial Year [FY]) is taken into account for purposes of calculating Income Tax. Under the income tax Act this period is called a Previous year.

Answer: It is the twelve-month period 1st April to 31st March immediately following the previous year [refer answer-4]. In the Assessment year a person files his return for the income earned in the previous year. For example for FY: 2008-09 the AY is 2009-10.

Answer: Any Individual or group of Individual or artificial bodies who/which have earned income during the previous years are required to pay Income tax on it. The IT Act recognizes the earners of income under seven [7] categories. Each category is called a Status. These are Individuals, Hindu Undivided Family [HUF], Association of Persons [AOP], Body of individuals [BOI], Firms, Companies, Local authority, artificial juridical person.
When Companies pay taxes under the Income tax Act it is called corporate tax.

Answer: No, The Income tax Act applies to all persons who earn income in India. Whether they are resident or non-resident.

Answer: If an individual stays in India for 182 days or more in a year, he is treated as resident in that year regardless of his citizenship. If the stay is less than 182 days he is a non-resident.

Answer: A company is considered as resident if it is incorporated under the Indian Companies Act. A foreign company can also become a resident if the control and management of its affairs is done entirely in India during the previous year.

Answer: In case of resident individuals and companies, their global income is taxable in India. However non-residents have to pay tax only on the income earned in India or from a source/activity in India.

Answer: It depends on your residential status. If you are a resident all incomes earned globally are taxable. Therefore the same needs to be included in the return. However if any tax is paid on that income in the foreign country, you will get credit for the same subject to DTAA rules with that foreign country.

Answer: It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the financial year. Different forms are prescribed for filing of returns for different Status and Nature of income.

Answer: You should choose a return form according to your status and nature of income from the following:

ITR1 For Individuals having Income from Salary/ Pension/ family pension & Interest
ITR2 For Individuals and HUFs not having Income from Business or Profession
ITR3 For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR4 For individuals & HUFs having income from a proprietary business or profession
ITR5 For firms, AOPs and BOIs
ITR6 For Companies other than companies claiming exemption under section 11
ITR7 For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)
ITR8 Return for Fringe Benefits
ITRV Where the data of the Return of Income/Fringe Benefits in Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature

Answer: Yes. In this software tax is automatically calculates for following assesses:

  • Individual
  • Resident female
  • Senior Citizens (Aged 60 years and above but below 80)
  • Super-Senior Citizens (Aged 80 years and above)
  • Non-Resident Indian assessee
  • Any other Individual(s)
  • Hindu Undivided Family [HUF]
  • Association of Persons [AOP]
  • Body of individuals [BOI]
  • Firms
  • Companies
  • Local authority and
  • Artificial juridical person.

Answer: Yes. You can file the online return through this software and while doing the same it shows all the errors of validation and one can rectify it then and there.

Answer: Yes. There is a separate option for listed securities but for the unlisted securities there is option of long term capital gain and short term capital gain. Under this option the details of both unlisted securities and other assets are to be inserted manually by the name of such security.

Answer: Yes. When you fill the details of unlisted securities under long term capital gain being the shares holds for a period of more than 12 months. The software check the condition of 36 months, when you click on the save button then one message will be displayed as

"Type of capital gain is Short Term.
Do you want to save this asset as Short Term Capital Gain?"
Then click on "No" and the asset will be saved as Long term capital asset.

Answer: Yes. In the software there are provisions about section 90, 90A, and 91. You can claim relief under above mentioned sections through this software.

Answer: Yes. It calculates the limit automatically and gives you the exempted and taxable amount in computation.

Answer: Yes. There is a compliance of section 44AD. In case of a firm, where the interest, salary and remuneration will be allowed after selecting higher between profits declared by the assessee at his own and deemed profits u/s 44AD. The tax will be calculated on whichever is higher basis depending upon the assessee.

Answer: Yes. Through the software MAT (Minimum alternative tax) u/s 115 JB is automatically calculated.

Answer: Yes. Through the software you can pay self assessment tax, advance tax etc.

Answer: The due dates are as follows:

Companies & their Directors 31st October
Other business entities, other than companies, if their accounts are auditable & their working partners 31st October
In all other case 31st July

Answer: Yes. It may be furnished at any time before the expiry of two years from the end of the financial year in which the income was earned. For example, in case of income earned during FY 2007-08, the belated return can be filed before 31st March 2010.

Answer: The excess tax can be claimed as refund by filing your relevant income tax return. It will be refunded by issue of cheque or by crediting to your bank account and both options are given in this software. The department has been making efforts to settle refund claims within four months from the month of filing return.

Answer: Provided the original return has been filed before the due date and provided the department has not completed assessment. However it is expected that the mistake in the original return is of a genuine and bona fide nature.

AIR (Annual Information Report)

Answer:

  • Annual Information Return (AIR) of 'high value financial transactions' is required to be furnished under section 285BA of the Income-tax Act, 1961 by 'specified persons' in respect of 'specified transactions' registered or recorded by them during the financial year. The due date of filing of the return is the 31st of August of the year given in Query No.3.
  • The 'specified persons' and the 'specified transactions' are listed in Rule 114E of the Income-tax Rules, 1962. Briefly, these are as mentioned under Query No.3.

Answer: Usually the transactions are to be reported by Banks, Financial Institutions and others these are as mentioned below:

  • 1) Cash deposits aggregating to Rs. 10 Lacs and more in a year in any savings account of a person maintained in a banking co. to which Banking Regulation Act, 1949.
  • 2) Payment made by any person against bills raised in respect of credit aggregating to Rs. 2 Lacs or more in a year.
  • 3) Receipt from any person of an amount of Rs.2 Lacs or more for purchase of Units of mutual funds.
  • 4) Receipt from any person of an amount of Rs.5 Lacs or more for acquiring bonds or debentures issued by a company or institution.
  • 5) Receipt from any person of an amount of Rs.1 Lac or more for acquiring shares issued by a company.
  • 6) Purchase by any person of Immovable property valued at Rs.30 Lacs or more.
  • 7) Sale by any person of Immovable property valued at Rs.30 Lacs or more.
  • 8) Receipt from any person of an amount of Rs. 5 Lacs or more in any financial year for investments in bonds issued by RBI (Reserve Bank of India).

Answer:

S. No. Class of Person Nature and Value of Transaction Clarification by Central Board of Direct Taxes vide Circular No.07/2005 dated 24 Aug,2005(4)
1. A Banking Company to which the Banking Regulation Act, 1949(10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act). Cash Deposits aggregating to 10 Lac rupees or more in a year in any savings account of a person maintained in that bank. Only the aggregate of all the cash Deposits in the savings account of a person to be reported as one transaction and the date of the transaction is to be the last date of the financial year i.e. 31.03.2005 in respect of F.Y. 2004-2005
2. A Banking Company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or any other Company or institution issuing credit card. Payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to two lakh rupees or more in the year. Only the aggregate of all the payments by a person to the credit card company is required to be reported as one transaction and date of transaction is to be the last date of the financial year i.e. 31.03.2005 in respect of FY 2004-05.
3. A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorized by the trustee in this behalf. Receipt from any person of an amount of two lakh rupees or more for acquiring units of that fund. The amount actually received from the transacting party and not the amount relating to allotment is to be reported.
4. A Company or institution issuing bonds or debentures. Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by the Company or institution. The amount actually received from the transacting party and not the amount relating to allotment is to be reported.
5. A Company issuing shares through public or rights issue. Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by the Company. The amount actually received from the transacting party and not the amount relating to allotment is to be reported.
6. Registrar or Sub Registrar appointed under section 6 of the Registration Act, 1908 Purchase or sale by any person of immoveable property valued at thirty lakh rupees or more. There may be certain situations where the transaction in respect of property valued at thirty lakh rupees involves joint parties and value for one or more parties is less than rupees thirty lakh. In such situations, all such transactions are to be reported in respect of all the joint parties even though the value of transaction in the hands of one or more of the joint parties is less than the threshold limit.
7. A person being an officer of the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 who is duly authorized by the Reserve Bank of India in this behalf. Receipt from any person of an amount or amounts aggregating to five lakh rupees or more in a year for bonds issued by the Reserve Bank of India. The aggregate of all the receipts from a person is required to be reported as one transaction and the date of the transaction is to be mentioned as the last date of the financial year i.e. 31.03.2005 in respect of FY 2004-05.
  • As per this rule, specified persons (Filers) should prepare their AIR in Form 61A (Part B) on computer readable media (i.e. CD or Floppy), supported by a duly signed verification and control chart in Form 61A (Part A) in paper format.
  • AIR should be furnished to the Commissioner of Income-tax (Central Information Branch) i.e. CIT (CIB). CBDT has authorized NSDL to receive AIR through the TIN Facilitation Centers on behalf of CIT (CIB). Filers may also file AIR online through internet.

Answer: Only one AIR is allowed to be filed by a Filer for a given financial year. However, in case the Filer wants to rectify genuine/bonafide mistakes or if it wants to furnish additional transactions to be included in AIR, it may do so through 'Supplementary Information'.

  • There are three situations when a Filer may be required to file Supplementary Information:
  • In response to a notice issued by CIT (CIB) within the time allowed by CIT (CIB)
  • Suo moto – to furnish additional details not submitted in original AIR in response to deficiency indicated by TIN-FC in provisional receipt
  • Some features of Supplementary Information are:
  • Supplementary Information should be furnished as per the data structure specified by ITD.
  • Supplementary Information should be incremental, i.e. contain information only on transactions reported earlier which are to be revised or if it wants to furnish additional information which is not provided in the previous return.
  • Supplementary Information should be filed at the same TIN-FC where the original AIR was filed.
  • In case the original AIR was filed online, Supplementary Information also should be filed online.
  • Supplementary Information should be filed in the same form and manner as an AIR with upload type as "R" for Supplementary Information.

Answer:

Number of Records Upload Fees (INR)*
Up to 100 25
101-1000 150
More than 1000 500
  • *The filer should also pay Service tax as applicable.

Answer: Now the IT dept. is ready to cross verifying your detail with AIR (Annual Information Return). In such transaction someone is responsible to file the AIR and file it to IT dept. through TIN-NSDL but it was published somewhere that in almost 60 % of the entries reported in AIR does not have a PAN. The reason behind that is person doing this transaction are not giving their PAN to the person who are liable to file the return. Though this number is reducing day by day but yet it is large in number.

Answer:

  • Usually Public think that if PAN is not supplied than our transaction cannot be traced by the dept. To some extent they are right but not 100 %. In new era of computerization it is possible to trace transaction even without PAN.
  • A software has been developed by the DIT (systems) to match the transaction without PAN in AIR. According to tender floated on Income Tax website there are 8,00,000 transaction without PAN reported in AIR and department has a PAN database of 5 crore. The software will detect two possible PAN for the every transaction without PAN reported in AIR on the basis of, Name of the person, address etc. then each suggested PAN for a particular transaction by the software will be verify by the person manually on the basis of other parameters not checked by the software and after the complete verification PAN will be assigned to the transaction, in this process in our view dept. will have a success almost 60-70 %.
  • So person who are not reporting information in new ITR by presuming that if PAN not given transaction cannot be traced , should reconsider it and should ready themselves according to alertness of Income Tax dept.

Answer: With a view to ensuring that the annual information return conforms to the required specifications, the person(s) responsible for filing return shall ensure the following:

  • Form No. 61A - Part A is duly filled in and verified and enclosed in paper format with the Form No. 61A - Part B in computer media.
  • The data structure of the AIR conforms to the data structure prescribed by the Administrator - Annual Information Return authorized by the Board.
  • The computer media containing AIR is readable, clean, virus free and not corrupt.
  • Permanent Account Number (PAN) of the person responsible for filing AIR (except in cases of Government departments) is mentioned in Form No. 61A (Part A and Part B).
  • Tax Deduction Account Number (TAN) of the office of the Principal Officer of the person responsible for filing AIR is mentioned in Form No. 61A (Part A and Part B) as the folio number for non-Government filers and of the filer in case of Government filers. In case TAN is not allotted, the return should be accompanied by a copy of acknowledgement of application made for allotment of TAN or duly filled in Form No. 49B with the requisite fees (only for Government filers).
  • The Control totals of total number of transactions and total value of all transactions mentioned at Item Nos. 8 and 9 of Form No. 61A (Part A) tally with the corresponding total at Item Nos. 7 and 8 of Form No. 61A (Part B).
  • The PAN, name, address, date of transaction, mode of transaction and amount of the transacting party or each of the joint parties in respect of every transaction are correctly and properly filled in at Item No. 9 of Form 61A (Part B). Where PAN is not required to be obtained under the law, it shall be mentioned in the form as to whether the transacting party is a Government Department or Consular Office or Form 60 or Form 61, as the case may be, has been received.

Answer: In case the AIR on the computer readable media is found to be corrupted or does not fulfill the above guidelines, the filer is expected to make appropriate correction and resubmit the Return.

Billing

Answer: Yes. You can maintain all kinds of bills and receipts within this software and can check outstanding of your dues.

  • Following options are available:
  • 1) Create Company (client)
  • 2) Alter Company
  • 3) Delete Company
  • 4) Other Clients
  • 5) Service Tax Rates: to change the rates currently effective.
  • 6) Category master: to Create and manage group of clients' category wise.
  • 7) Series: to create series order of Bills and Receipts.
  • 8) Opening balances: to check on outstanding as or when desired.
  • 9) Reports, based on:
Bill Details Pending Details
Receipt Details TDS Details (Bill Wise)
Outstanding Report TDS Details (Party Wise)
Service Tax (Bill Wise) Category Wise Bill Details
Service Tax (Receipt Wise) Opening Balance Details
Discount Details (Bill Wise) ST-3 Details
Discount Details (Party Wise) Client Account
  • 10) Settings: Serial order of Bills & Receipts and their format.
  • 11) Bulk Printing: for all clients
  • 12) Bills & Receipts: to issue to the clients.

Answer:

  • What is about miscellaneous information given in "Genius" software?
  • Answer: Genius is exceptionally comprises with:
  • Telephone cum Address Book
  • Complete Client information
  • Two sizes Label Printing
  • File Manager for maintaining client wise records of documents filled with relevant authority
  • Miscellaneous useful Information: (In our All softwares)
  • All India PIN Codes
  • STD Codes
  • ISD Codes
  • Online PAN/TAN verification
  • TIN-FCs
  • TAN/PAN AO Codes
  • Service Tax Ranges
  • Bank BSR Codes
  • MICR Codes
  • IFSC Codes
  • DSC Manager
  • PDF Converter
  • Calculator
  • Reminder Setup
  • Cheque Printing
  • Document Manager: Keeps clients important documents in various formats viz. Word, Excel, PDF, Scanned Documents (Picture Format).
  • Whats New? (Or) Check for Updates.
  • Keeps you updated with latest software updates and news available on our Website.
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