If you have habit of making high value cash purchases (including jewellery/bullion) its time to shell out more money for your purchases.

As per the recent Finance Bill 2017 (which is yet to be passed by the Parliament), you may have to pay TCS (Tax Collected at Source) @ 1% on your Cash purchases exceeding Rs. 200000/-.

Currently, Section 206 C (1D) of the Income-tax Act, 1961 mandates sellers for TCS as follows :-

1) 1% TCS if the sale consideration is in cash for bullion purchases exceeding Rs. 2 Lakhs

2) 1% TCS if the sale consideration is in cash for Jewellery purchases exceeding Rs. 5 Lakhs.

3) 1% TCS if the sale consideration is in cash for any goods other than bullion & jewellery.

The proposed provision in the Finance Act, 2017 (Budget) the classification of “Cash purchases of Jewellery exceeding Rs. 5 Lakhs” is being removed and as a result, any goods purchases exceeding Rs. 2 Lakhs in cash will attract TCS @ 1%

The amendment , if approved by the Parliament will be effective from 1st April 2017.

PAN of Landlord Mandatory for Claiming HRA (For rent exceeding Rs. 1 Lakh p.a)

The Income-tax Department has issued a new circular No 8/2013 dtd 10th October 2013.

This circular provides the procedures to be followed for Tax Deduction at Source on Salaries during the year 2013-14

In this circular, the Income-tax Department has provided as follows :-

1) Where the House Rent Allowance (HRA) amount is than Rs 3000/- per month, those salaried employees will be exempted from production of Rent Receipt. This exemption is applicable for the limited purpose of TDS and however in regular assessment procedures, they employee needs to provide the rent receipts during the assessment.

2) if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

The Other Important provision in the circular reads as under :-

The Drawing and Disbursing Officers should satisfy themselves about the actual deposits/ subscriptions / payments made by the employees, by calling for such particulars/ information as they deem necessary before allowing the aforesaid deductions. In case the DDO is not satisfied about the genuineness of the employee’s claim regarding any deposit/ subscription/ payment made by the employee, he should not allow the same, and the employee would be free to claim the deduction/ rebate on such amount by filing his return of income and furnishing the necessary proof etc., therewith, to the satisfaction of the Assessing Officer.

In view of the above, in respect of employees providing declaration from the landlord, the employers may request the employees to provide the Identity and address proof of the Landlords along with the Declarations to satisfy about the genuineness of the declaration.

The relevant circular is reproduced below :-

Download (PDF, Unknown)


Checklist for Filing Income-tax returns – Salaried Employees

The last date for filing Income-tax filing is fast approaching and you must be busy in compiling the details for filing the Income-tax returns. This checklist will be handy for you for compiling the details for your Income-tax returns.

PAN Card

Your PAN Card is the most important document required for filing your Income-tax returns. Quoting your/correct PAN number is the most important first step in filing your Income-tax returns.

Form 16

This document is the Tax Deduction (TDS) Certificate to be issued by the employer. From this year onwards, this TDS certificate needs to be downloaded from TRACES (Income tax Website) and to be certified by the employer using his digital signature (or) Manual Certification. The Form 16 will have two parts. Part A is the Tax deduction Certificate to be downloaded from TRACES website and Part B will give the detailed Salary break up and the Computation of tax thereon. Also ensure that your PAN number is correctly incoporated in the Form 16.

Form 16A

If you have income from Interest on Fixed Deposits from banks, financial institutions and the bank/financial institution has deducted tax there on, they must have issued a Tax Deduction Certificate (TDS Certificate) in Form 16A. This form should also be mandatorily downloaded from the TRACES (Income-tax) Website. Also ensure that your PAN number is correctly mentioned in the Form 16A.

Bank Account Details

Till last year, the Bank account number and MICR code of the branch was required to be mentioned in the return of Income. From this year, instead of MICR code, we need to provide IFSC code of the bank along with the bank account number. An easy place to find the same is the Cheque Book. In most of the banks, in the cheque leaves, these information will be present and the same is required for e filing.

Details of other Income

Details of other income which are chargeable to tax such as Savings Bank Interest, Interest on Fixed Deposits, Capital Gains, Rental Income, etc..


In case you have any income exempted from Income-tax, do not forget to declare the same in the exempted income field in the Income-tax returns. Also note if you have exempted income exceeding Rs. 5000/-, you cannot use ITR-1 form.

If you have paid any advance tax during the financial year, do not forget to claim the same by providing the Challan Identification Numbers in you return for claiming the same against your Income-tax Liaility.

Ensure that you provide your current/correct address, email id & Phone number in your return.

Form 26AS – Last but not the least

Before filing your Income-tax, please ensure that you check the following in Form 26-AS :-

–          Your Salary Income & TDS there on is appearing correctly and matching with the Form 16 available with you.

–          Form 26AS will display the Interest on Fixed Deposit & other payments on which tax has been deducted at source. Ensure both the income & TDS there on has been included in your return of Income.

–          Few banks and financial institutions follow the practice of filing details of Interest payments for which tax has not been deducted in view of submission of Form 15 G/15 H. Even-though tax is not deducted on the same do not forget that these income are chargeable to tax & include the same your return of income.

–          If you have got an Income-tax refund last year along with interest, ensure that the Interest on Income-tax refund is declared in the “Income from other sources” as the Interest on Income-tax refund is chargeable to tax.

–          Ensure that all the TDS, Advance tax payments are correctly matching as per the Form 16 / Form 16A / Advance Tax Challans available with you. If you find any missing figures in the Form 26AS, the tax credit will be given to you for the same and you may have to pay the tax not credited in your Form 26AS.

How to view the Form 26AS

1)      Form 26AS can be viewed by logging in to the Income-tax e filing website using your login credentials.

2)      Another easy way of viewing the Form 26AS is your online banking account. Most of the banks which are offering Online / Net Banking facility offers the facility to view your tax credits against your PAN. Log in to your net banking and click the Link “ View Tax Credit/26AS” which will give you the complete details with regard to Form 26AS.

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ITR-7 e filing utility notified..

ITR-7  e-filing utility for the A.Y.2013-14 (F.Y.2012-13) has been notified by the Income-tax Department for the First time. Till the A.Y.2012-13, ITR-7 was the only return which had the only option of filing hard copy of the Returns.

Compared to the other e-return utilities, which were Excel files which can be used to fill the returns, this ITR-7 utility is a tiny non-excel utility for filling the returns.

This return form is applicable to persons including companies required to furnish return under section 139(4A) or section 139(4B) ,(4C) or (4D)


Click the link below to download the ITR – 7 utility.