Flame Newsletter – July 16, 2014


QUOTE OF THE WEEK:

“Tax laws in India are becoming more and more complex. India is a factory of income tax disputes. More than 50% of tax cases world over are from India” - TP Ostwal, Partner, TP Ostwal & Associates

YOUR FINANCE DEMYSTIFIED:

Filing revised return of Income Tax u/s 139(5)

It is a good practice to file your income-tax return before the due date of filing returns u/s 139(1) of I-T Act, 1961. In a haste to meet the deadline, you may have forgotten to disclose some income or claim some deductions. What happens when you have filed your income tax return well before the deadline of filing returns but there was an omission or mistake made in filing the I-T return. There is no need to panic as you can always file a revised return of income tax under Section 139(5) adding the correct particulars.

The Income-Tax Act, 1961, offers you an opportunity to revise your tax return, provided the omission of wrong statement in the original return was due to a bonafide mistake. The deadline for filing a revised I-T return by an assessee is before the end of the relevant assessment year or before the completion of the assessment (whichever is earlier).

For instance: If an assessee files an I-T return for FY13-14 (i.e. assessment year 2014-15) on 10 July 2014 (due date for filing I-T return is 31 July 2014), however, later on discovers some mistake, then he can file a revised return of I-T anytime up to 31 March 2016 or before the completion of Assessment, whichever is earlier, for FY14... Read more

How to file income-tax returns online

Most of us are so busy in our daily activities that we hardly get time to take care of our finances. We also find it difficult to submit our income-tax returns before the due date. In order to meet the deadline of filing our income-tax return, most of us hire the services of a chartered accountant or tax consultant. However, no one knows your finances and income better than you — so why let anyone else file your tax returns?

Individuals prefer to file their tax return through experienced accountants or professionals due to lack of knowledge or the fear of making mistakes. The below article provides the basics of electronic tax return filing that could help you complete the process on your own.

Register yourself.

Filing of income tax returns online is very easy and free, especially for salaried people. First-time users need to register their permanent account number (PAN) in the tax website to do the filing. For registration, please have the PAN card handy, log-on to www.incometaxindiaefiling.gov.in, click ’register yourself” and submit your basic details... Read more

DID YOU KNOW?

Taxable income is also generated from appreciated assets that have been sold or capitalized during the year and from dividends and interest income. Income from these sources is generally taxed at a different rate and calculated separately by the tax entity. 

TERM OF THE WEEK

Book profit: Book profit means the net profit as shown in the profit and loss account for the relevant previous year.

IN THE NEWS THIS WEEK

RBI scraps pre-payment fee on floating rate loan

Banks can issue long-term bonds with 7 yrs maturity: RBI

MFs invest Rs55,000 crore in banking scrips

ABOUT FLAME

FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.



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