Income Tax Department

Implement the government’s mission to make India a cashless or much fewer coin the USA and weed out corruption; the Income Tax Department has again warned human beings to refrain from large cash transactions, contravention of which may additionally bring about the levy of penalty or disallowance of tax deductions.

The following are the five transactions that the Income Tax Department doesn’t need you to do:

Don’t take delivery of cash of Rs 2,00,000 or extra in the mixture from a single person on a day or for one or more transactions related to one event or occasion. Instead of coins, you’re recommended to use an account payee cheque, or account payee bank draft, or an electronic clearing system via a financial institution account for such transactions. However, the said restriction shall not now follow the authorities, any banking employer, put up a workplace financial savings bank, a co-operative financial institution, or a person notified by the Central Government. Section 271DA of the Income Tax Act presents a levy of penalty on someone who gets a sum in contravention of section 269ST. The penalty shall be identical to the amount of such receipt. However, the penalty shall not be levied if the person proves that there had been true and sufficient motives for such contravention.

Don’t acquire or pay off detailed sums exceeding Rs 20,000 or greater in cash for a switch of immovable property. Use an account payee cheque or account payee call for draft or a strength clearing system through a bank account. “Specified sum” approach any amount of money receivable, whether or not as strong or otherwise, on the subject of the transfer of immovable property, whether or not the transfer takes place. Contravention of the provisions of phase 269SS will attract a penalty under phase 271D. Penalty under section 271D shall be levied at an amount equal to the mortgage or deposit taken or familiar.

Don’t pay more than Rs 10,000 in coins referring to the expenditure of the enterprise/career. If such costs exceeding Rs, 10,000 are made in any mode, other than by using an account payee cheque drawn on a financial institution, or account payee financial institution draft, or use of digital clearing gadget thru a financial institution account, no deduction shall be allowed in admire of such expenditure inside the profit and loss account.

Don’t donate more than Rs 2,000 in coins to a registered consider or political party. If you do that, then not only will you not be capable of claiming deductions under section 80G of the Income Tax Act for such donations, but appropriate actions might be initiated in opposition to the belief or political birthday celebration for encouraging money laundering.
Don’t pay medical health insurance charges in cash. If you make any payment in coins due to the top rate on medical health insurance centers, you won’t get deductions under Section 80D of the Income Tax Act.
So, it is beneficial on your very own properly not to violate the above regulations because the Income Tax Department is seeking statistics regarding such violations, black cash, or benami transactions.

The Form 26AS (ANNUAL TAX STATEMENT) is a consolidated tax credit statement issued to the taxpayer by the Income Tax Department. Entries in the Tax Credit Statement (Form 26AS) are generated while a legitimate PAN number has been provided in quarterly TDS statements. It indicates how tons of your tax has been received with the aid of the IT Department and is consolidated from a couple of sources like your profits/rent/professional / interest earnings, and so forth. This form incorporates the annual tax assertion under Section 203AA and the second provision of Section 206C (five) of the Income Tax Act, 1961, and Rule 31AB of Income Tax Rules, 1962. TDS certificates, i.E. Form sixteen and 16A, have to be checked with Form 26AS.

Form 16 is issued with the aid of an employer, while Form 16A is issued by every other TDS deductor, not being an enterprise, viz. A bank deducting TDS on Interest, a client deducting TDS on Professional charges, and a tenant deducting TDS on Rent.

Importance:

Form 26AS is essential for claiming the credit of TDS/TCS deducted/accrued with the aid of the deductor/collector, which has been deposited into the authorities’ account. The deductor/collector should document the TDS/TCS declaration, giving details of the tax deducted/accumulated on your behalf.

The shape is largely divided into several components as follows:

PART A – Details of Tax Deducted at Source

It includes a specific list of tax deductors and the overall quantity deducted/paid or credited to you, with tax deducted and tax deposited thereon. TDS contemplated in Form sixteen and Form 16A needs to be matched with this part.

To make the back submission process less complicated, the Central Government of India has notified on 1st June 2006 a brand new income-tax return form ” Form 2F” for Assessment Year 2006-07.

This Form has been designed in a way that is easy to apprehend and can be filled up with little or no assistance.

This Form can be utilized by resident people and HUF who do not have –

(i) profits and profits of business or career; or

(ii) capital profits; or

(iii) agriculture profits; or

(iv) more than one residence asset; or

(v) any declaration for alleviation under phase 89 in admire of arrears or boost of Salary.

However, Individuals/HUF with long-term capital gains from transactions in securities on which securities transaction tax (STT) has been paid can also use this form.

This Form is applicable with immediate impact. However, to permit enough time for taxpayers to familiarize themselves with this Return shape, the existing web page Saral Form: 2E can also be used as much as 31.7 2 July 006.

The salient functions of the brand new shape are-

(i) It has been accelerated to 4 pages so that there is sufficient area to fill inside the info.

(ii) No annexures are required to be connected with this Return shape. If enclosed, the same will be back by way of the professional receiving the return.

(iii) Detailed explanatory instructions were furnished to fill this Form.

(iv) Cross-referencing to the Instructions has been provided for maximum entries.