Income Tax Department

Implement the government’s mission to make India a cashless or much fewer coins 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.

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 an unmarried person in an afternoon or for one or greater transactions referring to one event or occasion. Instead of coins, you’re recommended to use an account payee cheque or account payee bank draft or use of electronic clearing system via a financial institution account for such transactions. However, the said restriction shall now not follow to the authorities, any banking employer, put up workplace financial savings bank, co-operative financial institution or a person notified by using the Central Government. Section 271DA of the Income Tax Act presents for levy of penalty on someone who gets a sum in contravention of the provisions of phase 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.

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Don’t acquire or pay off detailed sum 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 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 transfer of immovable belonging, whether or not the transfer takes location. Contravention of the provisions of phase 269SS will attract penalty under phase 271D. Penalty underneath segment 271D shall be levied of an amount identical to mortgage or deposit is taken or familiar.
Don’t pay more than Rs 10,000 in coins referring to the expenditure of 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 in excess of Rs 2,000 in coins to a registered consider or political celebration. If you do that, then now not only you won’t be capable of claim deductions under segment 80G of the Income Tax Act for such donations, however appropriate movements might be initiated in opposition to the belief or political birthday celebration for encouraging cash laundering.
Don’t pay medical health insurance charges in cash. If you make any price in coins due to top rate on medical health insurance centers, you won’t get deductions under Section 80D of the Income Tax Act.
So, it is really useful 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.

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The Form 26AS (ANNUAL TAX STATEMENT) is a consolidated tax credit statement issued by the Income Tax Department to the taxpayer. Entries in the Tax Credit Statement (Form 26AS) are generated while a legitimate PAN number has been said 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 resources like your profits/rent/professional / interest earnings and so forth. This form incorporates the annual tax assertion underneath Section 203AA and second provision to 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 pass checked with form 26AS.

Form 16 is issued with the aid of an employer while Form 16A is issued via every other TDS deductors not being an enterprise viz. A bank deducting TDS on Interest, a client deducting TDS on Professional charges, 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 to the account of the authorities. The deductor/collector should as it 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 overall quantity deducted/paid or credited to you with tax deducted and tax deposited thereon. TDS contemplated in Form sixteen and Form 16A need to be matched with this part.

With a view to making go back submitting less complicated, the Central Government of India has notified on 1st June 2006 a brand new earnings-tax return form ” Form 2F” for Assessment Year 2006-07.

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

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 assets; or

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

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

This Form is applicable with instant impact. However, to permit enough time to taxpayers to familiarize with this Return shape, the existing one web page Saral Form: 2E also can be used as much as 31.7 2006.

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, 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.