TAXATION SERVICES

Goods and Service Tax in India

The Goods and Services Tax (GST) is an exciting tax system that was introduced in India on July 1, 2017. It’s a comprehensive indirect tax that replaced a bunch of different taxes previously imposed by the central and state governments. The best part? It made the whole tax structure across the country much simpler and more streamlined!

So, what’s the deal with GST? Well, it has a dual structure consisting of the Central Goods and Services Tax (CGST) and the State Goods and Services Tax (SGST). The CGST is collected by the Central Government on supplies of goods and services within a state, while the SGST is collected by the State Governments on the same. When it comes to supplies between states or imports, we have the Integrated Goods and Services Tax (IGST) that the Central Government collects.

Now, let’s talk about the different tax rates. GST Registration in kolkata introduced a multi-tier tax structure, which means that different goods and services fall into different tax slabs. We have 5%, which is applied to essential items like food grains and books. Then there’s 12% and 18% for most goods and services, and finally, 28% for luxury items and certain other goods and services.

One of the cool features of GST is the input tax credit. It allows businesses to set off the tax they paid on purchases (inputs) against the tax collected on sales (outputs). This helps businesses avoid paying tax on tax, which is a big relief!

If you’re running a business and your turnover exceeds the threshold (which is currently INR 40 lakhs for most states), you’ll need to register for GST. This process gives you a fancy Goods and Services Tax Identification Number (GSTIN) that identifies your business for all things GST-related.

Now, as a registered business, you’ll need to file regular GST returns. These returns involve providing details about your sales, purchases, and tax payments. How often you need to file them depends on your business turnover, so be sure to keep track!

Hey, if you’re a small business owner with a turnover below a certain threshold (which is currently INR 1.5 crores for most states), you can opt for the composition scheme. It’s a pretty sweet deal because you get to pay GST at a fixed rate based on your turnover and enjoy some relaxed compliance requirements.

Don’t worry about navigating the GST world alone! There’s an online portal called the Goods and Services Tax Network (GSTN) that’s got your back. It’s a user-friendly platform where you can register for GST, file returns, make tax payments, and even track your transactions. Super convenient!

Remember, staying informed and compliant with GST regulations is essential for your business. If you ever need guidance or more detailed information, reach out to our tax professionals. Happy GST-ing!

Our top tax consultants including Chartered Accountants are delivering all types of taxation services like Professional Tax Registration in kolkata, Good and Service Tax, Income Tax, Property Tax etc efficiently and monitoring their business so that it is cost effective.

Income Tax Return in India

Filing income tax returns in India is mandatory for individuals whose total income exceeds the specified threshold limit, even if they don’t have any tax liability. Here’s a simplified guide to help you understand the process:

Who Needs to File:

1. Individuals: Resident individuals below 60 years of age with income exceeding ₹2.5 lakhs annually need to file returns.
2. Senior Citizens: Individuals aged 60-80 with income exceeding ₹3 lakhs need to file returns.
3. Super Senior Citizens: Individuals aged 80 and above with income exceeding ₹5 lakhs need to file returns.
4. Companies, LLPs, Firms: Regardless of profit or loss, all these entities need to file returns.

Types of Forms:

The type of form you need to fill depends on your income sources:

1. ITR-1 (Sahaj): For individuals having income from salaries, one house property, other sources (except lottery and horse racing), and having total income up to ₹50 lakhs.
2. ITR-2: For individuals and HUFs not having income from profits and gains of business or profession.
3. ITR-3: For individuals and HUFs having income from profits and gains of business or profession.
4. ITR-4 (Sugam): For presumptive income from business and profession.
5. ITR-5: For persons other than individuals, HUFs, companies, and persons filing Form ITR-7.
6. ITR-6: For Companies other than companies claiming exemption under section 11.
7. ITR-7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.

Steps to File:

1. Collect Documents: Gather documents like PAN, Aadhaar, Form 16, bank statements, investment proofs, etc.
2. Choose Correct Form: Choose the right form based on your income sources.
3. Compute Total Income: Calculate your total income and tax liability.
4. Fill the Form: Fill in the required details accurately.
5. Verify and Submit: After filling the form, verify it and submit it.
6. Acknowledgment: After submission, you’ll receive an acknowledgment.
7. Verification of ITR: Verify your ITR within 120 days of filing. You can e-verify using Aadhaar, net banking, bank ATM, or by sending a signed physical copy to CPC Bangalore.

Important Dates:

• July 31st: The usual deadline for filing income tax returns. However, this can vary and there are often extensions provided.
• Advance Tax: Pay advance tax if tax liability exceeds ₹10,000 in a financial year.

Penalties for Non-Compliance:

• Late filing attracts penalties ranging from ₹5,000 to ₹10,000, depending on when you file.
• Interest is levied on any tax due but unpaid before the due date.

Filing Income Tax Return in kolkata is essential for individuals and entities meeting the specified criteria. It ensures compliance with tax laws and helps in availing benefits like loans, visa processing, etc. It’s advisable to seek professional assistance if you’re unsure about the process or have complex income sources.