Wealth Tax return Form BB e filing utility AY 2014-15 released

CBDT has issued a notification 32/2014 dated 23-06-2014 regarding wealth tax return for assessment year 2014-15 . Under which e filing of wealth tax return made mandatory for all person except Individual and HUF not covered under provision of Section 44AB (tax audit) of Income Tax Act.

Wealth Tax return now can be filed online at Incometaxindiaefiling.gov.in portal through newly released utility in Java for Form BB.

Major changes have been made regarding filing of wealth tax return.

1. New wealth tax return form BB shall be applicable from assessment year 2014-15.

2.      E filing of wealth tax return is mandatory for all type of persons for assessment year 2014-15 onwards except as per sr no 3 below.

3.      Individual / HUF to whom provision of section 44AB (tax audit) is not applicable in assessment year 2014-15 may file wealth tax return on paper form.

4.      Exemption to Individual / HUF is granted (as per sr no -3 above) only for AY 2014-15.so from next year (AY 2015-16) all person are required to e file wealth tax return with digital signature.

5.      E filing is to be done with digital signature.

6.      Nothing is to be attached with wealth tax return like statement of computation of tax payable, valuation report of registered valuer, and proof of tax or interest deposit.

7.      E filing process will be notified in due course.

8.      Due date to file wealth tax return is same as of Income Tax return 

Source: http://www.simpletaxindia.net/2014/07/wealth-tax-return-form-bb-e-filing.html

Recent changes in income tax return filing form relating to TDS

ITR forms of earlier A.Y. did not have any mechanism to carry forward the excess TDS. Thus, taxpayers were required to show the entire TDS as deduction and claim the refund of excess TDS.

To fix the above issues, from this A.Y. while claiming TDS in Income Tax return some new columns has been given:

(a)Brought forward Unclaimed TDS of previous year .i.e. unclaimed TDS of previous year can be claimed in the current financial year

(b) Amount claimed out of Brought forward Unclaimed TDS of previous year and from the TDS of Current Financial year

(c) Carry forward the Unclaimed TDS to next year.

There is a condition for point (b) .i.e. the assessee can claim TDS of previous year or current year only if the corresponding income on which such tax is deducted at source is being shown by the assessee in the appropriate “Heads of Income” in the ITR of the current Financial Year.

TDS refund V/S TDS carried forward

TDS not claimed in the current financial year can be carried forward to the next financial year only if income on which such tax has been deducted is not shown in any of the appropriate heads of income in the ITR of the current financial year.

If the income has been shown in the appropriate heads of income then the assessee has to claim the refund of the TDS in the current financial year and will not able to carry forward the TDS to next financial year.

Earlier, taxpayers were given an option to claim refund through cheque or credit into bank account. From now onwards i.e., A.Y.2014-15 no option is available and Income Tax Refund will be issued directly in the bank account of the taxpayer through ECS only, cheques are discontinued.

Therefore special care should be taken while mentioning Bank Account Number and IFSC Code in the income tax returns. This is a relief to the tax payer as it will increase the tax refund process.

System of accounting

Tax payers can follow any system of accounting either accrual basis or cash basis but the taxpayers which follow cash system of accounting will be benefited, like Doctors, Advocates, CAs and other professionals.

(a) In case of cash basis of accounting the unutilized TDS amount can be carried forward to the next year.

(b) In case of accrual basis of accounting the unutilized TDS amount can be claimed as refund.

Source : http://taxmantra.com