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Identifies
Records
Accounting
is a
System that
CommunicatesRelevant
Reliable
Comparable
Information
that is
to help users make better
decisions.
� Long Term, Mid Term & Short Term Goals
� Annual Budget – Quarter wise
Budgeted vs. Actual� Budgeted vs. Actual
� Incorporate Business Strategy
� Helps in Commercial Negotiations and Deals
ParticularsParticularsParticularsParticulars YearlyYearlyYearlyYearly Q1Q1Q1Q1 Q2Q2Q2Q2 Q3Q3Q3Q3 Q4Q4Q4Q4
Sales / Service
Direct Cost (Variable Exps)
Material
Wages & Salary
Direct ExpensesDirect Expenses
Total Direct Cost
Contribution / Gross Margin
Indirect Cost (Fixed Expenses)
Net Profit
ManufacturingManufacturingManufacturingManufacturing TradingTradingTradingTrading ServiceServiceServiceService Works contractWorks contractWorks contractWorks contract
Excise Vat / CST / PT Service Tax Service Tax
Customs Income Tax TDS VAT / CST / PT
VAT / CST /PT TDS Income Tax TDS
Income Tax Income Tax
TDS
� Assessment year & Previous Year
� Slab Rates Of Income Tax
� Heads Of Income
� Deductions under Section 80C
� Tax Audit u/s 44AB
� Income Tax accounts u/s/44AA
� Meaning of Assessment Year (AY) & Previous Year (PY):-
1. Assessment Year-It Means the Period of 12 months commencing on the first day of April every months commencing on the first day of April every year
2. Previous Year-It is the Financial year Preceding Assessment year.
� Slab Rates Of Income Tax for A.Y.2016-17 (Fy 2015-2016)
� For Individuals below 60 years of Age & HUFIncome tax slabsIncome tax slabsIncome tax slabsIncome tax slabs IncomeIncomeIncomeIncome Tax RatesTax RatesTax RatesTax Rates
Upto Rs.2,50,000 Nil
2,50,000 To Rs.5,00,000 10%
Rs.5,00,000 To Rs.10,00,000 20%
Rs.10,00,000 & Above 30%
� Rates Of Income Tax for A.Y.2016-17
� For Company/Partnership Firm/LLP:-
• Flat Rate @ 30% on the Total Income.
Surcharge @7% in case total Income exceeds Rs.1 crore in • Surcharge @7% in case total Income exceeds Rs.1 crore in case of Domestic co.
• Education & secondary education cess @ 3% on tax.
� Income From Salary
� Income from Business/Profession
� Income from House Property� Income from House Property
�Capital Gains
� Income from other sources
� Business Deductions u/s 30 To 36.
� Allowable Deductions :
1. Interest on Borrowed capital[Sec 36(1)(iii)]
2. Bad Debts[Sec36(1)(vii)]2. Bad Debts[Sec36(1)(vii)]
� Any Expenditure not covered by sec 30 to 36 is deductible u/s 37
Computation:-
ParticularsParticularsParticularsParticulars Rented Rented Rented Rented PropertyPropertyPropertyProperty
Self OccupiedSelf OccupiedSelf OccupiedSelf OccupiedPropertyPropertyPropertyProperty
Gross Annual Value Xxx Nil
Less: Muncipal Taxes Xxx Nil
Net Annual Value Xxx Nil
Less: Deduction u/s 24• Standard Deduction (30% of Net Annual Value)
• Interest on Borrowed capital
Xxx
Xxx
Nil
(2,00,000)
Income From House Property Xxx (2,00,000)
�Arise on Sale of Capital Assets.
Type of Capital Type of Capital Type of Capital Type of Capital GainGainGainGain
Short Term Short Term Short Term Short Term Long Term Long Term Long Term Long Term
Exception – Equity Shares or Units of UTI or Equity Mutual Fund – Period of holding is 1 Year.
Short Term Short Term Short Term Short Term Capital GainCapital GainCapital GainCapital Gain
Long Term Long Term Long Term Long Term Capital GainCapital GainCapital GainCapital Gain
Sale Sale Sale Sale within within within within 3 3 3 3 YearsYearsYearsYears
Sale Sale Sale Sale After After After After 3 3 3 3 YearsYearsYearsYears
�Computation :-
ParticularsParticularsParticularsParticulars AmountAmountAmountAmount
Sale considerationLess: Transfer Expenses
XXXX
Net Consideration XX
Less:Cost of Acquisition(or Indexed COA in case of LTCA)Less:Cost of Improvement
XX
XX
Less: Exemptions XX
Capital Gains (Short / Long Term) XX
� LTCG on Sale of Equity / Equity Mutual Fund is exempt u/s 10(38)
� STCG on Sale of Equity/Equity Mutual Fund is taxable @ 15%.
�Debt Mutual Fund – Period of Holding 3 Years
�
Receipts without consideration [sec 56(2)(vii)]:- GIFTS
� Money / Property below – 50,000 – Non Taxable
� Money / Property exceeding – 50,000 – Taxable
� Money / Property – Received from Relative – Non Taxable� Money / Property – Received from Relative – Non Taxable
� Money / Property – Received on Marriage – Non Taxable
� Money / Property – Recd by Will / Inheritance – Non Taxable
� Nature of Payment:-
1. Life Insurance Premium
2. PPF, NSC, Mutual Fund, UTI
3. Tution Fees
4. Housing Loan Instalment (Principal)
5. FD for 5 years or more with scheduled bank/Post office
6. Subscription to notified bonds of NABARD
7. Deposit in Senior citizen Saving Scheme
8. Investment in Debenture & equity shares of public co.
� Following Persons are Required to get their Accounts Audited compulsorily by a chartered Accountant
Different TaxpayersDifferent TaxpayersDifferent TaxpayersDifferent Taxpayers When they are covered u/s 44ABWhen they are covered u/s 44ABWhen they are covered u/s 44ABWhen they are covered u/s 44AB
Person carrying on Business If Total sales , Turnover, Gross receipts for P.Y. Person carrying on Business If Total sales , Turnover, Gross receipts for P.Y. exceeds Rs.1crore.
Peron carrying on Profession If Gross Receipts for P.Y. exceeds Rs.25 Lakhs
Person covered u/s 44 AD If he claims that Profits are lower than profits computed under these sections.
� TDS Rates chart
sectionsectionsectionsection Nature of PaymentNature of PaymentNature of PaymentNature of Payment Payment exceeding Payment exceeding Payment exceeding Payment exceeding RsRsRsRs....
Rate of TDS(in %)Rate of TDS(in %)Rate of TDS(in %)Rate of TDS(in %)
194A Interest other than 'Interest on securities'
10,000 10
194C Payment to Contractors/Subcontractor
Rs. 30000. Rs. 100,000 for aggregate
• For I & HUF 1%• Others 2%
Contd.
contractor aggregate
194I • Rent of Land, Building /Furniture
• Plant & Machinery
180000 • 10
• 2
194J Professional Fees 30000 10
� As per sec 285BA of the I.T. Act,1961,specified entities are required to furnish AIR in respect of specified financial transactions registered by them during F.y.
Sr. Sr. Sr. Sr. no.no.no.no.
NatureNatureNatureNature of Transactionof Transactionof Transactionof Transaction
1 A Banking company transaction of cash Deposits of >=Rs.10 Lakh in SB A/c of a person (Current A/c 50 Lakhs)
2 Any other company issuing credit card & raised bill of >=Rs.10Lakh (Cash Payment – 1 Lakh)
3 A Trustee of a Mutual Fund receives Amount of >=Rs.2 Lakh
4 A Company or institution issuing bonds or debentures receives amount of >=10 Lakh
5 A Company issuing shares through a public or rights issue receives amount of >=Rs.10 Lakh
6 Registrar or Sub-Registrar receives amount of >=Rs.30 Lakh in respect of purchase & sale of immovable property
� Obtaining a Business Loan (OD / CC), Housing Loan, Car Loan or any other Personal Loan
� Obtaining Govt. Tenders, Registration on Panel
� Obtaining visa for Immigration to outside India.� Obtaining visa for Immigration to outside India.
� Accidental claim in Third Party Insurance.
� Buying a Insurance Policy with Higher Cover
� To avoid Non-Compliance notice from Income Tax
� Registration-Turnover Limit (w.e.f.1-4-2005)
categorycategorycategorycategory Total T.O.Total T.O.Total T.O.Total T.O. of of of of sales or sales or sales or sales or Purchase to Purchase to Purchase to Purchase to exceedexceedexceedexceed
T.O. ofT.O. ofT.O. ofT.O. of sales sales sales sales or purchases or purchases or purchases or purchases of taxable of taxable of taxable of taxable goods not less goods not less goods not less goods not less thanthanthanthan
Other conditionsOther conditionsOther conditionsOther conditions
Importer Rs.1,00,000 Rs.10,000 No minimum Amount isPrescribedPrescribed
All other dealers
Rs.10,00,000 Rs.10,000 NIL
Voluntary Registration
NIL NIL Payment of
Rs.5000 as fees & Rs.25,000 as Deposit
� Computation Of MVAT
ParticularsParticularsParticularsParticulars AmountAmountAmountAmount
VAT Collected on Sales @ 12.5% @ 8 %@ 5 %
XXXXXX@ 5 %
Total Vat on Sales
Less :VAT Paid On Purchases @12.5% / 5% / 8%
XXXXX
XXX
MVAT Payable XXX
Periodicity Periodicity Periodicity Periodicity Due DateDue DateDue DateDue Date
Monthly 21st Day from the end of the month
Quarterly 21st Day from the end of the quarter
� Total Turnover of Sales Or Purchase exceeds Rs.1crore.
� Due Date for VAT AUDIT-15th January
� Form Applicable-Form 704
� Penalty for non filing of form 704 on due Date
0.1% of Turnover of Sales
� Registration
� Applicability:-Service Provider whose value of services exceeds Rs.9 Lakhs
� Form:-ST-1
� Time Limit:-Within 30 days from the date of commencement of Business.
� Registration Certificate will be granted in form ST-2
� Penalty for Late Registration:-Maximum Rs.10,000
� Requirements:-
� It should be an ‘Activity’
� Should be carried out by one person for another� Should be carried out by one person for another
� Carried out for Consideration.
� It includes Declared Services
� PeriodicityHalf yearHalf yearHalf yearHalf year Due DateDue DateDue DateDue Date
April-September. 25th October
October - March 25th April
� Form:-ST-3
� E-filing of Returns is mandatory to all Assesses.
� Payment of Tax
AssesseeAssesseeAssesseeAssessee DueDueDueDue DateDateDateDate
i) Individual, Firm, LLP
• 6th of the next month from the end of the Qtr.
• 31st March. In case of Qtr
� E-Payment of tax is mandatory.
• 31 March. In case of Qtr ending March.
ii) Other than i) above (LimitedCompany –PVT/Public/OPC)
• 6th of the next month from the end of the month
• 31st March. For month of March.
� Failure to pay service tax on due date
DelayDelayDelayDelay InterestInterestInterestInterest
Upto 6 months 18%
Upto 1 year 18% for 1st 6 months &24% for delay beyond 6 months
� If Turnover does not exceed Rs.60 Lakh in any F. y. then Rate of Interest shall be reduce by 3% p.a. i.e . 15%, 21% & 27%
24% for delay beyond 6 months
>1 Year 18% for 1st 6 months,24% for next 6 months & 30% for delay beyond 1 year
� Late fee & Penalty for filing Late return
DelayDelayDelayDelay Late feeLate feeLate feeLate fee
Upto 15 days Rs.500
Beyond 15 days & upto 30 days Rs.1000
Delay beyond 30 days Rs.1000 + Rs.100 per
� Maximum Penalty cannot exceed Rs.20,000
Delay beyond 30 days Rs.1000 + Rs.100 per day of delay beyond 30 days, from 31st
day onwards
� PTRC
� Periodicity & Due Dates of Return & Payment
Tax LiabilityTax LiabilityTax LiabilityTax Liability PeriodicityPeriodicityPeriodicityPeriodicity Months of Salary toMonths of Salary toMonths of Salary toMonths of Salary tobe Coveredbe Coveredbe Coveredbe Covered
Due DateDue DateDue DateDue Date
< Rs.50000 Annual March of previous year 31st March< Rs.50000in p. y.
Annual March of previous year& April to February ofcurrent year
31 March
>=Rs.50000 in P.y. Monthly Salary of previous month End of month for which return is filed
In case of 1st yearof registration
Monthly Salary of previous month End of month for which return is filed
� Rates of Tax
Sr.noSr.noSr.noSr.no Class of PersonsClass of PersonsClass of PersonsClass of Persons Rate of TaxRate of TaxRate of TaxRate of Tax
1. Salary & wage earner whose salary• <=Rs.7500 • Nil
• >7500 but <= Rs.10000
• > Rs.10000
• Rs.175 per month
• Rs.2500 p.a.a) Rs.200 per month except for feb.
b) Rs.300 for feb.
2. Proprietor/Partner/Director Rs.2500 P.a.
� Current A/c of Business
� At least 1/2 Business Proofs
All Returns to be filed on Time� All Returns to be filed on Time
� Credit Policy – For Payments
� More Tax Compliance Business Unit
APRAJ & ASSOCIATES
Chartered Accountants
Shop No. 3, S-19, Shree Swaroop Niketan CHS.,
Hanuman Tekdi, Ashokvan, Borivali (East)
Mumbai – 400 066. Tel: 022-28969557, Mumbai – 400 066. Tel: 022-28969557,
Mobile 9820992331,
Email us at :- [email protected]
Website:- www.aprajandassociates.com