What are the documents required for Tan Application?

 To apply for a Tax Deduction and Collection Account Number (TAN) in India, you need to submit specific documents and follow the prescribed procedures. Here is a list of the key documents and information typically required for a TAN application:

Form 49B: The application form for TAN. This can be filled online or offline.

Proof of Identity: For the individual signing the application, you may need:

PAN card

Aadhaar card

Voter ID card

Passport

Driving license

Proof of Address: This should be for the entity (company, firm, etc.) applying for TAN:

Utility bills (electricity, water, gas, telephone)

Bank account statement

Property tax receipt

Registered lease/rent agreement

Certificate of Incorporation (if applicable): For companies, a copy of the Certificate of Incorporation.

Partnership Deed (if applicable): For partnerships, a copy of the Partnership Deed.

Trust Deed (if applicable): For trusts, a copy of the Trust Deed.

Registration Certificate (if applicable): For societies, a copy of the Registration Certificate issued by the Registrar of Societies.

Authorization Letter: If the application is being submitted by an authorized representative, a letter of authorization on the company’s letterhead is required.

Address Proof of Entity:

For companies: the registered office address proof.

For firms/partnerships: office address proof.

Details of the Deductor/Collector:

Name and designation of the person responsible for making payments/collecting tax.

PAN of the entity and the person responsible.

Offline Application Procedure:

Obtain Form 49B: Obtain the form from TIN facilitation centers or download it from the NSDL/UTIITSL website.

Fill the Form: Fill in the required details in the form.

Attach Documents: Attach the necessary documents as listed above.

Submit: Submit the form along with the documents to the TIN facilitation center.

Rules and regulations for tan application

The rules and regulations for TAN (Tax Deduction and Collection Account Number) in India are set by the Income Tax Department. TAN is essential for entities that are required to deduct or collect tax at source (TDS/TCS). Here are the key rules and regulations related to TAN:

1. Requirement of TAN

Every entity liable to deduct TDS or collect TCS must obtain a TAN.

This includes businesses, individuals, government departments, and others specified under the Income Tax Act.

2. Application for TAN

TAN can be applied for online via the NSDL-TIN website or through offline submission of Form 49B at TIN Facilitation Centers.

The application requires specific details such as the entity's name, address, and the nature of the entity (e.g., individual, company, etc.).

3. Structure of TAN

TAN consists of 10 digits: a combination of letters and numbers (e.g., ABCD12345E).

The first three characters are alphabetic, representing the jurisdiction code.

The fourth character is the initial of the entity's name.

The next five characters are numeric, and the last character is an alphabetic check digit.

4. Usage of TAN

TAN must be quoted in all TDS/TCS returns, payment challans, certificates, and other related documents.

Failing to quote TAN in these documents can attract penalties.

5. Filing of TDS/TCS Returns

Entities with TAN are required to file quarterly TDS/TCS returns.

The due dates for these returns vary but generally fall at the end of the month following the quarter.

6. Issuance of TDS/TCS Certificates

Deductors/collectors must issue TDS/TCS certificates to the payees.

Forms used include Form 16/16A for TDS and Form 27D for TCS.

These certificates must be issued within the prescribed time frame after the end of the financial year or quarter.

7. Penalties and Consequences

Penalties for not obtaining TAN: A fine of ₹10,000.

Penalties for not quoting TAN in specified documents: ₹10,000.

Late filing fees: ₹200 per day for delay in filing TDS/TCS returns.

Other consequences include disallowance of expenditure for which TDS was not deducted.

8. Correction and Updates

Changes or corrections to TAN details can be made by submitting a 'Form for Changes or Correction in TAN Data' to the NSDL.

This is essential for maintaining accurate records and compliance.

9. Surrender of TAN

If an entity no longer needs a TAN (e.g., it ceases to exist or no longer has TDS/TCS obligations), it should surrender the TAN by notifying the Income Tax Department.

10. Verification of TAN

TAN can be verified online via the NSDL-TIN website.

This helps ensure that the TAN used is valid and correctly associated with the entity.

11. Compliance

Regular updates and guidelines are issued by the Income Tax Department.

It is essential to stay informed about changes to ensure compliance with the latest regulations.

12. Support and Queries

For any queries or issues related to TAN, entities can contact the TIN-NSDL helpline or visit their official website.

By adhering to these rules and regulations, entities can ensure smooth and compliant handling of TDS/TCS responsibilities, avoiding penalties and legal issues.

CONTACT US 

AIAT INSTITUTE

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

Question & Answer

Which form is required to apply for a TAN in India?

A) Form 49A
B) Form 60
C) Form 49B
D) Form 16
Answer: C) Form 49B

What is the penalty for not obtaining a TAN when required?

A) ₹5,000
B) ₹10,000
C) ₹15,000
D) ₹20,000
Answer: B) ₹10,000

Which of the following documents can be used as proof of identity for an individual signing the TAN application?

A) Passport
B) Utility bill
C) Property tax receipt
D) Bank account statement
Answer: A) Passport

TAN consists of how many characters?

A) 8
B) 10
C) 12
D) 15
Answer: B) 10

Which document is required for companies as proof of address when applying for a TAN?

A) Partnership Deed
B) Trust Deed
C) Certificate of Incorporation
D) Voter ID card
Answer: C) Certificate of Incorporation

What must be quoted in all TDS/TCS returns and related documents?

A) PAN
B) Aadhar Number
C) TAN
D) GSTIN
Answer: C) TAN

Entities with TAN are required to file TDS/TCS returns how often?

A) Monthly
B) Quarterly
C) Annually
D) Semi-Annually
Answer: B) Quarterly

What is the fine for failing to quote TAN in specified documents?

A) ₹5,000
B) ₹7,500
C) ₹10,000
D) ₹15,000
Answer: C) ₹10,000

Which of the following is NOT required as proof of address for a TAN application?

A) Utility bills
B) Bank account statement
C) Certificate of Incorporation
D) Passport
Answer: D) Passport

Where can one verify the TAN online?

A) GSTN Portal
B) NSDL-TIN website
C) MCA Portal
D) Income Tax e-Filing portal
Answer: B) NSDL-TIN website

Top 10 Latest Updates on GST You Should Know in 2024

 

Goods and Services Tax (GST) is India's comprehensive indirect tax system, which was implemented in July 2017 to replace multiple taxes such as VAT, Excise Duty, and Service Tax. GST is levied on the supply of goods and services, with the tax rate varying depending on the type of goods and services provided. GST is a destination-based tax, which means that tax revenue is directed to the state where the goods or services are consumed. The Goods and Services Tax (GST) system in India is constantly evolving to meet the needs of a dynamic economy. Staying updated with the latest changes is crucial for businesses, tax professionals, and individuals alike. Here are the top 10 latest updates on GST that you need to know in 2024:

1. Introduction of E-Invoicing for Small Businesses

Starting from April 2024, e-invoicing will be mandatory for businesses with an annual turnover of ₹5 crore and above. This move aims to curb tax evasion and streamline the GST filing process by ensuring real-time tracking of invoices.

2. Revised GST Rates for Essential Items

The GST Council has revised the tax rates on several essential items to address inflationary pressures. Notable changes include a reduction in GST rates for certain food items and medical supplies, making them more affordable for the general public.

3. Simplified GST Return Filing Process

To ease the compliance burden, the government has introduced a simplified return filing process. The new system, GST RET-1, aims to replace the existing GSTR-3B and GSTR-1 forms, providing a more user-friendly interface and reducing the time required for filing returns.

4. GST on Online Gaming and Digital Services

In response to the booming digital economy, the GST Council has clarified tax rates for online gaming, streaming services, and other digital offerings. A standardized 28% GST rate will now apply to online gaming, while streaming services will attract an 18% tax.

5. Changes in Input Tax Credit (ITC) Provisions

The eligibility criteria for claiming Input Tax Credit (ITC) have been revised. Businesses must now ensure that their suppliers have filed their returns and paid the due taxes to claim ITC, promoting greater compliance across the supply chain.

6. Quarterly Return Filing for Small Taxpayers

Small taxpayers with an annual turnover of up to ₹1.5 crore can opt for quarterly return filing instead of monthly. This change aims to reduce the compliance burden on small businesses, allowing them more time to focus on growth and development.

7. Introduction of GST Amnesty Scheme

The GST Council has introduced an amnesty scheme to provide relief to taxpayers with pending returns. Under this scheme, taxpayers can file their pending returns with reduced late fees, encouraging better compliance and clearing backlog returns.

8. Enhanced GSTN Portal Features

The GST Network (GSTN) portal has been upgraded with new features, including an improved dashboard, real-time tracking of returns, and a more efficient reconciliation process. These enhancements aim to make the portal more user-friendly and efficient.

9. GST on Crypto currency Transactions

With the rise of crypto currency trading, the GST Council has proposed a 28% tax on the value of crypto currency transactions. This step aims to bring digital currency transactions into the tax net, ensuring proper regulation and revenue generation.

10. Sector-Specific Tax Relief Measures

To support various sectors affected by economic downturns, the government has introduced sector-specific tax relief measures. For instance, the hospitality and tourism industries are benefiting from reduced GST rates to stimulate recovery post-pandemic. 

Latest GST Update

Self-Enablement for e-Invoicing

Taxpayers with turnovers exceeding INR 5 crores in FY 2023-2024 must begin e-invoicing on April 1, 2024, or when they cross the threshold in subsequent years. Those meeting the criteria but unregistered can self-enable through the provided portals: e-Invoice IRP 3–6, or NIC IRP 1&2.

Reset and re-filing of GSTR-3B for some taxpayers

Taxpayers are notified of the option to re-file GSTR-3B returns due to discrepancies between saved and filed data in the GST system, particularly regarding ITC availment and tax liabilities. The GST Council's Grievance Redressal Committee has decided to reset affected returns for correction. Only affected taxpayers received email notifications encouraging them to re-file within 15 days. For any re-filing issues, contact your jurisdictional tax officer or the GST grievance redressal portal.

Other GST Updates

Extension of GSTR-1 Due Date for March 24: The government has extended the March 2024 GSTR-1 filing deadline for monthly taxpayers to April 12, 2024, according to notification no. 09/24 - central tax.

GSTN extends the GSTR-1 deadline to April 12, 2024, acknowledging taxpayers' difficulties in filing GSTR-1 due to portal technical issues. It suggested that the CBIC extend the due date for monthly taxpayers by one day, to April 12, 2024.

CONTACT US 

AIAT INSTITUTE

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

Question & Answer

What is the new annual turnover threshold for mandatory e-invoicing starting April 2024?

A) ₹1 crore

B) ₹5 crore

C) ₹10 crore

D) ₹20 crore

Answer: B) ₹5 crore

What major change has been made to the GST rates for essential items?

A) Increased GST rates for all essential items

B) GST rates remain unchanged

C) Reduced GST rates for certain food items and medical supplies

D) Introduced a new category for essential items

Answer: C) Reduced GST rates for certain food items and medical supplies

What is the purpose of the new GST RET-1 form introduced by the government?

A) To increase tax rates

B) To replace GSTR-3B and GSTR-1 forms and simplify return filing

C) To introduce new categories of taxes

D) To reduce the number of forms required for filing returns

Answer: B) To replace GSTR-3B and GSTR-1 forms and simplify return filing

What is the standardized GST rate for online gaming according to the latest updates?

A) 18%

B) 28%

C) 12%

D) 5%

Answer: B) 28%

What new condition must businesses meet to claim Input Tax Credit (ITC)?

A) Businesses must file returns monthly

B) Businesses must ensure their suppliers have filed returns and paid due taxes

C) Businesses must submit additional documentation

D) Businesses must register for a special ITC scheme

Answer: B) Businesses must ensure their suppliers have filed returns and paid due taxes

What filing option is now available for small taxpayers with an annual turnover of up to ₹1.5 crore?

A) Monthly return filing only

B) Quarterly return filing option

C) Bi-annual return filing

D) No return filing required

Answer: B) Quarterly return filing option

What is the objective of the GST Amnesty Scheme introduced by the GST Council?

A) To increase the tax rate

B) To provide relief to taxpayers with pending returns by reducing late fees

C) To introduce new filing requirements

D) To extend the filing deadlines for all taxpayers

Answer: B) To provide relief to taxpayers with pending returns by reducing late fees

What new feature has been added to the GST Network (GSTN) portal?

A) Enhanced dashboard and real-time tracking of returns

B) New payment gateways

C) Multi-language support

D) Virtual assistance for taxpayers

Answer: A) Enhanced dashboard and real-time tracking of returns

What GST rate has been proposed for cryptocurrency transactions?

A) 18%

B) 5%

C) 28%

D) 12%

Answer: C) 28%

What sector-specific tax relief measure has been introduced to support the hospitality and tourism industries?

A) Increased GST rates

B) No change in GST rates

C) Reduced GST rates to stimulate recovery post-pandemic

D) Additional compliance requirements

Answer: C) Reduced GST rates to stimulate recovery post-pandemic

What is Capital Gains Tax rules & regulations?

 Investing in a house property is one of the most popular investments, primarily because you get to own a home. Others may invest with the intention of profiting from the property when they sell it. It is important to note that a residential property is considered a capital asset for income tax purposes. As a result, any gain or loss incurred during the sale of a residential property may be subject to taxation under the 'Capital Gains' heading. Similarly, capital gains or losses can result from the sale of various types of capital assets. We will go over the chapter on 'Capital Gains' in detail here.

Tax Rates for Long-Term and Short-Term Capital Gains

Tax Type	Condition	Applicable Tax
Long-term capital gains tax (LTCG)	Sale of: - Listed equity shares (if STT has been paid on the purchase and sale of these shares) - units of equity-oriented mutual funds (if STT was paid on the sale of such units)	10% over and above Rs 1 lakh
	Others	20%
Short-term capital gains tax (STCG)	When Securities Transaction Tax (STT) does not apply	Normal Slab Rate
	When STT is applicable	15%

A Capital Gain Account Scheme (CGAS) is a provision under the Income Tax Act of India, designed to help taxpayers avail tax benefits on capital gains. Here are some key rules and regulations related to CGAS in India:

Purpose: The CGAS allows taxpayers to deposit the capital gains arising from the sale of a capital asset (like property or shares) before the due date of filing their income tax return to claim exemption from capital gains tax.

Account Types: CGAS accounts are classified into two types:

CGAS Type I: This account is used when the taxpayer has not yet identified any asset to purchase but wishes to claim tax exemption on capital gains.

CGAS Type II: This account is used when the taxpayer has identified an asset to purchase but the purchase transaction is not completed before the due date of filing their income tax return.

Time Limit: The capital gains must be deposited in the CGAS account before the due date of filing the income tax return. This due date is usually July 31st of the assessment year for individuals.

Withdrawal: The amount deposited in the CGAS account must be utilized within the specified time frame. For Type I accounts, the amount must be utilized within 60 days from the date of deposit. For Type II accounts, it must be utilized within the time period specified by the taxpayer at the time of deposit but not exceeding the prescribed time limit.

Utilization: The amount deposited in the CGAS account can only be used for specified purposes, such as purchasing a new asset or constructing a new house. If the amount is not utilized within the specified time frame, it will be treated as capital gains of the previous year in which the time frame expires.

Interest: The CGAS accounts earn interest, and the interest earned is taxable. However, the interest income is generally lower compared to other savings accounts.

Joint Accounts: Joint accounts are not allowed under the CGAS scheme.

Bank Approval: Taxpayers need to open CGAS accounts in specified banks authorized by the government. These banks have different procedures and documentation requirements for opening CGAS accounts.

Documentation: Taxpayers need to submit Form A along with an application and identification documents to open a CGAS account.

CONTACT US 

AIAT INSTITUTE

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

Question & Answer

What is the purpose of the Capital Gain Account Scheme (CGAS)?

A. To help taxpayers save money for future purchases

B. To provide tax benefits on capital gains

C. To facilitate easy withdrawal of capital gains

D. To encourage investment in equity shares

Answer: B. To provide tax benefits on capital gains

Which type of account under CGAS is used when the taxpayer has not identified any asset to purchase?

A. CGAS Type I

B. CGAS Type II

C. CGAS Type III

D. CGAS Type IV

Answer: A. CGAS Type I

What is the time limit for depositing capital gains into a CGAS account?

A. Before the end of the financial year

B. Before the due date of filing the income tax return

C. within 30 days of the sale of the asset

D. within 90 days of the sale of the asset

Answer: B. Before the due date of filing the income tax return

How long does a taxpayer have to utilize the amount deposited in a Type I CGAS account?

A. within 30 days

B. within 90 days

C. within 6 months

D. within 60 days

Answer: D. Within 60 days

Which of the following is NOT a permissible utilization of funds from a CGAS account?

A. Purchasing a new asset

B. Constructing a new house

C. Paying off existing debts

D. Renovating an existing property

Answer: C. Paying off existing debts

What happens if the amount deposited in a CGAS account is not utilized within the specified time frame?

A. It is transferred to the taxpayer's savings account

B. It is treated as capital gains of the previous year

C. It is exempted from taxation

D. It is used to pay off outstanding taxes

Answer: B. It is treated as capital gains of the previous year

Which of the following is true regarding the interest earned on CGAS accounts?

A. The interest earned is tax-free

B. The interest earned is taxable

C. The interest earned is higher compared to other savings accounts

D. The interest earned is compounded annually

Answer: B. The interest earned is taxable

Are joint accounts allowed under the CGAS scheme?

A. Yes

B. No

Answer: B. No

Which form needs to be submitted along with an application and identification documents to open a CGAS account?

A. Form B

B. Form C

C. Form A

D. Form D

Answer: C. Form A

What is the tax rate for long-term capital gains tax (LTCG) on listed equity shares and equity-oriented mutual funds if STT has been paid on both purchase and sale?

A. 10%

B. 15%

C. 20%

D. 25%

Answer: A. 10%