Are you ready for ITR Filing?
We’re ready to file your Income Tax Returns (ITR) for the Financial Year (FY) 2016-17 [that is, Assessment Year (AY) 2017-18]. You may not have received your Form 16 so far from your employer, but you can send us all the other details – we’ll get everything ready for you since the Govt has introduced a few new check items for filing ITRs; as soon as you get your Form 16s, please send them to us at the earliest.
This year we’re starting a new tax service for which there has been a persistent demand – Advance Tax service along with regular Income Tax filing. Hence, you have the option of:-
- Filing only the ITR for the FY 2016-17, ie, for the period 1st April 2016 – 31st March 2017, as regularly done by you.
- Combination of getting your Advance Tax for the Financial Year 2017-18 (ie the current financial year which has started from 1st April 2017) along with the ITR for FY 2016-17 at a small extra nominal charge. Please note that Advance Tax service for FY 2017-18 is not available if you do not file your ITR for FY 2016-17 through us.
- If you haven’t filed your ITR for FY 2015-16 (for the period 1st April 2015 – 31st March 2016), that can also be done right now.
Please let us know what service would you like to go ahead with us, and either give us a mail on email@example.com or whatsapp/SMS the requirement on Phone number 09999 053 522. We would revert back to you with a detailed mail on how to go ahead with the service you’ve chosen.
Our charges for the Advance Tax and ITR filing are as below. Do not miss out details of the concession given by us to our existing Investment Clients given later in this mail. Please remember that we are referring to Advance Tax service for the FY 2017-18 (01 Apr 2017-31 Mar 2018, the current financial year) while ITR filing is for the FY 2016-17 (01 Apr 2016-31 Mar 2017, which has just got over):-
|Category of IT Return||ITR Charges||Advance Tax charges|
|Individuals with income from Salary/Pension only, normal HRA calculations and rentals from a maximum of one property [ITR-1]||Rs 1000/-||Rs 250/-.
For all our existing Mutual Fund Investment Clients, these are waived off if they get their ITRs filed by us.
|Armed Forces JCOs/OR (Personnel Below Officer Rank, PBOR) with income from Salary/Pension only and rentals from maximum one property [ITR-1]||Rs 500/-|
|For Individuals having house property income from more than one house and/or capital gains computation from stocks, mutual funds, property sale etc. (We assume moderate calculations of Capital Gains. If calculations are very time-consuming, charges may be higher) [ITR-2]||Rs 1500/-|
|Professional Income (With Income Expenditure statement)||Rs 2500/-|
|Professional Income (With Income Expenditure statement, Capital account statement and Balance Sheet)||Rs 5000/-|
|For NRIs (for Indian Income, simple tax return)||Rs 2500/-|
For the clients who have reposed a huge faith in us and entrusted us with their large savings, we are grateful to them for it and wish to give the following complementary services to them:-
|Current Mutual Fund Investments with us (As on 30th April 2017)||No ITR Filing Fee or Advance Tax fee
[The complementary ITRs need to be only of ITR-1 or ITR-2 categories. Difference chargeable for other categories]
|Above Rs 1.5 Crores||Complementary ITR filing for Self, Spouse and 2 more persons (unmarried Children / parents only)|
|1.0 – 1.5 Crores||Complementary ITR filing for Self and Spouse|
|75 Lakhs – 1.0 Crores||Complementary ITR filing for Self.|
A large number of people are not very clear about what is Advance Tax. A write-up on the same is given below.
What is Advance Tax?
Contrary to common perception, your Income Tax due for a financial year is required to be calculated in advance and is to be paid throughout the year in instalments as laid down by the Govt. To explain this, say your income for the financial year 2017-18 (ie, income earned from all sources from 01 Apr 2017 – 31 Mar 2018) is Rs 12,00,000 (12 Lakhs). Total Income Tax on this comes out to be Rs 1,72,500. Without considering any complications like tax savings, education cess etc, let’s see how the Govt expects you to pay this tax:-
|Due Date for Advance Tax Instalment||Percentage Advance Tax Payable||Amount Payable in our Example|
|On or before 15 June 2017||Not less than 15% of total tax||Rs 25,875|
|On or before 15 Sep 2017||Not less than 45% of total tax||Total Rs 1,03,500 including amount paid earlier, if any|
|On or before 15 Dec 2017||Not less than 75% of total tax||Total Rs 1,29,375 including amount paid earlier, if any|
|On or before 15 Mar 2018||100% of total tax liability||Total Rs 1,72,500 including amount paid earlier, if any|
That’s the reason, your employers, whether fauji or corporate, deduct your tax every month from your salary so as to keep it very simple and not to cause undue sudden financial burden on you. Thus, if your tax is being deducted as above and you have no other income, there’s no additional advance tax to be paid by you.
However, while calculating advance tax, people generally forget the income generated from rent, interests received from FDs (bank FDs, company FDs), regular pay outs from PO MIS (Post Office Monthly Income Scheme) or SCSS (Senior Citizen Savings Scheme), interest received from builders or money lent out etc. Thus insufficient tax gets paid which results in an interest penalty later.
Who has to pay Advance Tax?
Following categories of people have to pay advance tax or additional advance tax:-
- Salaried people whose employer does not deduct full quantum of advance tax as due.
- Salaried people whose employer deducts correct advance tax every month but they have income other than salary, like House Rent, interest from FDs, HRA, etc where proper advance tax deduction is their own responsibility.
- Those receiving pension but their bank deducts only 10% advance tax (TDS) on pension while they themselves may be in a higher tax bracket.
- People working as consultants to companies and no/less advance tax is being deducted by the company.
What is the penalty if Advance Tax is not paid, if due?
Advance tax has to be paid by people whose total tax liability for a year exceeds Rs 10,000. If advance tax due, as per the table above, is not paid in time, simple interest of 1% per month (or part thereof) is payable under various sub-sections of Income Tax Section 234. Thus, if no advance tax is paid, at the time of filing the ITR (Income Tax Return), not only a large amount of tax due has to be paid but also the interest that would’ve built up due to non-payment of advance tax. If advance tax is paid in due time, the penalty interest is avoided as also the tax due is comfortably spaced out over the year, avoiding the sudden burden of paying a large amount of Income Tax.
Please remember that the First advance tax instalment of 15% of total tax for FY 2017-18 is due on 15th June 2017.
For more information, feel free to reach us on, firstname.lastname@example.org or call + 011 – 4240 2032, 40545977, 49036836 or