Tax Episode

HOW TO ADD NEW DDO DETAILS IN SFT FILING

Login to the Income Tax Portal
login using id and password
Now click on My Account - Reporting Portal - Confirm
Now you will redirect to Income Tax reporting portal page
Here click Ok then choose Manage Principal Officer then click on Continue
Here select the Form Type and ITDREIN
Now Choose existing DDO name then click on Deactivate
Now close the Tab
Now go the the Income Tax portal and do the Point 3, 4, 5 and 6 again
Here you have to enter Principal Officer details
After entering Principal Officer details go the Income Tax Reporting Portal
Here click on Forgot Password
Now enter new DDO PAN number and generate a new password using OTP
After sucessful generating password login to the Income Tax Reporting Portal
Now you only login using Principal officer, you have to Add Designated Director
First go to Profile - Registered user
Here deactivate the old DDO from Designated Director and Add new Designated Director
Now login using Designated Director and upload the digital signatur

How to upload TDS statements on Income Tax e-Filing Portal

To Upload TDS, the steps are as below:

Create Signature file for registering your DSC
Create .zip file
create upload file
Upload file in Income Tax Portal

1. Creating Signature file for Registering DSC

First you have to create a signature file then you have to upload it in income tax portal. For creating signature file you need a software that is called DSC Utility you can download from Income tax portal or my given link. After downloading DSC Utility follow below steps.

Note: Java must be installed in your system

First put the DSC token in you computer and then open DSC Utility
Now click on Register/Reset password using DSC

Now enter User ID, PAN and DSC details then click Generate Signature file
Now submit with token password and save the signature file.

Go to https://www.incometaxindiaefiling.gov.in/ and click on Login Here.

Enter User ID (TAN), Password, and Captcha. Click Login.

After Login, click on Profile Settings -> Register Digital Signature Certificate

Now choose the Signature file and click submit.
Now Digital signature certificate successfully updated in Income Tax portal

2. Create zip file

Right click on the .fvu file.
Then click on Add to archive...

Now Select ZIP from Archive Format, then click OK

Now ZIP file created

3. Create Signature file for upload

Now again open DSC Utility
click on Bulk upload
Here select the ZIP file you have created in previous step, Provide user id and PAN number and select token and click Generate Signature file.

Now signature file created.

4. Uploading File in Income Tax Portal

Go to https://www.incometaxindiaefiling.gov.in/ and click on Login Here.

Enter User ID (TAN), Password, and Captcha. Click Login.

Go to TDS > Upload TDS.

In the form provided, select the appropriate statement details from the drop down boxes, then click on validate

Now upload the ZIP file and signature file that you have created in step 2 and step 3

After upload you can see like this

To download the Provisional Receipt,
Go to TDS > View filed TDS.
Select the appropriate option

Click on Token number
Now click on Click here to download Provisional Receipt.

Note: To open the PDF, enter you TAN number in lower case.

Registration/Preparation and Filing of Income Tax SFT Report (Form 61A)

Today I am going to tell you how to file Nil return of a Sub-Registered office for the financial year 2018-19.

1. Download the Software

Go to Income Tax Reporting Portal
Now Click on Utilities under Resources TAB

Here download the below 2 softwares

Generic Submission Utility
Report Generation and Validation Utility - Form 61A

Note: You must installed Java

2. Preparation of SFT

Now open Report Generation and Validation Utility - Form 61A
Here choose SFT-012 (Purchase or Sale of Immovable Property) and click Continue

Now fill all the details in Statement (Part A) Tab

Reporting Entity Name: Office Name
ITDREIN: Income Tax Department Reporting Entity Identification Number is a 16 character identification number allotted by the Income Tax Department to a Reporting Entity for reporting on reportable transaction of a specified type. You have generate it from Income Tax site.
Registration Number: blank
Statement Type: N - Not applicable as this is a new statement/test data/there is no data to report
Statement Number: 2019/01 (first year then numeric value 1, 2, 3...
Reporting period ending on: FY end date means 31 March 2019
Now put the details of Principal officer means DDO of this office

Now click on Save button
then click Generate XML

3. Generating ITDREIN

4. How to Digitally Sign XML file

put your DSC Token
open Generic Submission Utility
here browse the XML file and click on Generate Package

Now save the package

5. Register DSC in Reporting Portal

Put your DSC token in computer
Open Internet Explorer
Now Click on Tools - Internet Options - Content - Certificates

Now Click on your DSC Token Name and click Export

Now Certificate Export wizard dialog opens

Then Click Next - Next - Next - give file name and browse for save

Now login in with Principal Officer PAN to the Income Tax Reporting Portal

Now click on Profile - Upload Digital Signature - upload

6. Uploading Package in Reporting Portal

The Income Tax Act has framed a new concept to furnish a Statement of Financial Transactions in a prescribed form 61A also known as AIR (Annual Information Return) previously. The Statement of Financial Transactions or Form 61A is a record of specified financial transactions that should be furnished under the Income Tax Act.

The specified financial transactions referred above are of following kinds:

Sale, purchase or exchange of goods, right, property, or interest in any property.
Works contract.
Delivering services.
Any investment or expenditure.
Accepting any deposit or taking any loan.

Due Date to File Form 61A

This statement for the previous FY needs to be furnished within May 31st every year. In case an assessee is not able to do so, the authorities would issue a notice to such an assessee, demanding the assessee to submit the form within 30 days from issuance of such notice.

In case such assessee continues to be the assessee in default by not answering to such notice, a penalty would be levied on the assessee that would amount to INR 500/day of such default. This penalty would be calculated from the expiry of the period as stipulated in such notice.

Transactions to be reported in Form 61A

Individuals responsible for furnishing Form 61A	Type of Transaction and limit
Banking Companies and Co-operative Banks	Cash payment for purchase of POs (Purchase orders) / DDs (Demand drafts) for amount totalling to INR 10 lakhs or more annually
Banking Companies and Co-operative Banks	Cash payment exceeding INR 10 lakhs for purchasing any prepaid RBI instruments like RBI bonds, etc.
Banking Companies and Co-operative Banks	Deposits or withdrawals amounting to INR 50 lakhs or more from a current account of an account holder
Banking Companies, Co-operative Banks and Post Offices	Deposit totalling to INR 10 lakhs or more in one or more accounts of an account holder
Banking Company, Co-operative Bank, Post Master General of Post office, Nidhi	Cash payment aggregating to INR 1 lakh or more in a year or INR 10 lakhs or more against any credit card bill which is issued to a customer in a year
A company or an institution issuing debentures or bonds	Receipt exceeding INR 10 lakhs in a year from an individual for acquiring such debentures/bonds
A company issuing shares	Receipt exceeding INR 10 lakhs in a year from an individual for acquiring such shares. This includes share application money received.
Listed companies	Share buy-back from a person for an amount totalling INR 10 lakhs or more
Manager/Trustee of a Mutual Fund	Receipt exceeding INR 10 lakhs in a year from an individual acquiring the units of such Mutual Fund
A Dealer of Foreign Exchange	Receipt from a person for sale of a foreign currency or expenses incurred in such foreign currency via a debit/credit card or via issue of draft or traveller’s cheque or any other financial instrument for an amount totalling INR 10 lacs or more annually
Inspector-General/Sub-Registrar appointed under the Registration Act, 1908	Sale/ Purchase by a person of an immovable property for INR 30 lakhs or more or which is valued by stamp valuation authority at INR 30 lakhs or more
Persons liable for audit u/s 44AB of the Income Tax Act	Cash receipt exceeding INR 2 lakhs by a person for sale of goods or rendering of services (other the ones specified above)

1. Deduction of Interest Paid on Housing Loan

A home loan must be taken for the purchase/construction of a house and the construction of the house must be completed within 5 years.
It has two components – Interest payment and Principal repayment.
The interest portion of the EMI paid for the year can be claimed as a deduction from your total income up to a maximum of Rs 2 lakh under Section 24
Additional exemption of upto Rs. 50,000 under Section 80EE

Conditions for claiming 80EE

Value of this house should be Rs 50 lakhs or less
Loan taken for this house must be Rs 35 lakhs or less
The loan must be sanctioned between 01.04.2016 to 31.03.2017*
As on the date of the sanction of loan, no other house property must be owned by you.

2. Deduction on Principal repayment

The Principal portion of the EMI paid for the year is allowed as deduction under Section 80C.
The maximum amount that can be claimed is up to Rs 1.5 lakh

Note:

The house property should not be sold within 5 years of possession. Otherwise, the deduction claimed earlier will be added back to your income in the year of sale.

Example:

If Ram taken a house loan. Total Loan Value: 5 Lakh, Year: 10 Year

During FY 2018-19, he pay total 80,000/- as loan amount from that Interest Amount: 30,000/- and Principal Amount: 50,000/-.

Adjustment:

In 24B: 30,000/- (limit upto 2 lakh)

80C: 50,000/- (limit upto 1.5 lakh)

Some tables for easy understanding

Type of Property	Self Occupied Property		Not Self Occupied Property
Completion Status	Completed within 5 years	Not completed within 5 years	Completed within 5 years	Not completed within 5 years
Deduction Allowed	Rs. 2,00,000	Rs. 30,000	No Limit	No Limit

Particulars	Section 24	Section 80C
Tax Deduction allowed for	Interest	Principal
Type of Property	Any Real Estate Property	Only Residential House Property
Basis of Tax Deduction	Accrual basis	Paid basis
Quantum of Tax Deduction allowed	Self Occupied Property:Rs. 2,00,000. Non Self Occupied Property: No Limit	Rs. 1,50,000
Purpose of Loan	Purchase/ Construction/ Repair/ Renewal/ Reconstruction of a Residential House Property.	Purchase / Construction of a new House Property
Eligibility for claiming Tax deduction	Purchase/ Construction should be completed within 5 years	Nil
Restriction on Sale of Property	Nil	Tax Deduction claimed would be reversed if Property sold within 5 years

Particulars	Quantum of Deduction (Rs.)
Particulars	Self Occupied Property	Non-Self Occupied Property
Section 24	2,00,000	No Limit
Section 80C	1,50,000	1,50,000
Section 80EE	50,000	50,000