Tag Archives: Efiling of Income Tax Return

GST returns guide

Step by Step Guide to File GST Return-3B

GSTR-3B filling is under progress and the last date for GSTR-3B filling is 20 August 2017. Please find below the step by step guide on how to file GST Return-3B.

Step by step guide on how to file GST Return-3B
1. After login, select Return Dashboard
2. Select Financial Year 2017-18 and Month July. Click Search and Select GSTR-3B
3. Declare your liabilities and ITC claims in Section 3.1 and 4 respectively by clicking on the tiles and furnishing the required information. Transitional ITC cannot be claimed in GSTR 3B. It can be claimed only through TRANS 1 and TRANS 2.
4. Enter details of interest, if payable, in Section 5.1. Late fee will be computed by the system
5. Click on Save GSTR-3B After you save the data, Submit button will get enabled. Please note that after submit, no modification is possible. Hence ensure that details are filled correctly before clicking on Submit button.
6. On clicking Submit GSTR-3B button, System will post (debit) the self-assessed liabilities including system generated late fee in Liability Register and credit the claimed ITC into ITC ledger.
7. After this the Payment of Tax tile will be enabled, please click it and declare your payment details to pay the taxes and offset the liability.
8. Click CHECK BALANCE button to view the balance available for credit under Integrated Tax, Central Tax, State Tax and Cess. (This includes transitional credit also, if TRAN-1 and 2 are submitted). This will enable you to check the balance before making the payment for the respective minor heads. The balance is also displayed when the mouse is hovered on the applicable data entry field in payment section.
9. Please fill out the section that specifies how you wants to set-off your liabilities using a combination of Cash and ITC.

  1. System checks if you have sufficient Cash/ITC balance.
  2. It also checks if the Reverse charge liabilities are set-off only through CASH.
  3. System also checks if all liabilities are set-off. Part payment is not allowed in GSTR-3B.        Hence, ensure sufficient balance in Cash and ITC Ledger to Offset liability
  4. In case of ITC utilisations, the system checks the prioritization rules viz. IGST Credit has to be first utilised for paying IGST liability and remaining for CGST liability and thereafter SGST liability; SGST credit has to be first used for paying SGST liability and then IGST liability; CGST Credit has to be first used for CGST liability and the remaining for IGST Liability; SGST credit cannot be used for paying CGST liability and CGST credit cannot be used for paying SGST liability
  5. Transition ITC, if available in ITC ledger, can be used for payment of liabilities of GSTR 3B

10. Click the OFFSET LIABILITY button to pay off the liabilities
11. Click on declaration statement
12. Select Authorized Signatory filing the Form
13. Click on File GSTR-3B button with DSC or EVC
14. Message for successful filing will appear and Acknowledgement will get generated

Chartered accountant in Delhi India

Executive Summary of ICDS

ICDS (Income Computation and Disclosure Standards) are applicable for the Year ending on 31.03.2017 (Ay 2017‐18)

1. ICDS are applicable to all kinds of taxpayers (resident or non‐resident both) where taxpayers opting of mercantile system of accounting.

2. ICDS are not applicable where taxpayer is an Individual or a HUF and also not required to get accounts audited under section 44AB of Income Tax Act, 1961

3. ICDS are also applicable to the tax payers where taxpayer is computing income chargeable to tax under presumptive basis (Section 44AD, 44AE, 44ADA, 44B, 44BBA of Income Tax Act, 1961)

4. ICDS are applicable where incomes under head Profits and Gains from Business and Profession or Other Sources. 10 ICDS are issued by CBDT vide Notification No. 33, dated March 31, 2015

5. ICDS are applicable beside taxpayers are adopting Ind AS or AS to maintain their books of accounts.

6. ICDS are not applicable for computing income under MAT provisions but applicable for AMT.

7. ICDS are not applicable for maintenance of Books of Accounts or preparing of financial statements. ICDS are only applicable for computing incomes for the purpose of payment of income tax liability.

8. ICDS are not applicable where conflict is existed with Income tax Act or Rules. Henceforth Income Tax Act or Rules will prevail over ICDS

9. ICDS are applicable where conflict is existed with courts judgments and judicial precedents. Henceforth ICDS will prevail over courts judgments and judicial precedents.

10. ICDS are not applicable where sector specific provisions not contained in ICDS i.e no specified ICDS for real estate developers, BOT (Build‐Operate‐Transfer) projects and leases etc.

11. Net effect on incomes due to application of ICDS is to be disclosed in the Return of Incomes. Significant Accounting policy and specific disclosures are also required to disclose in tax audit report (Form 3CD)

12. Assessing Officer is permitted to make best Judgement assessment under section 144 of Income Tax Act, 1961 where incomes are not computed under provisions of ICDS.

13. Accounting Policies
(I) ICDS are not recognizing the concept of prudence
(II) ICDS are not allowing recognition of expected losses or mark‐to market losses unless specifically permitted by ICDS
(III) ICDS are not permitting the concept of materiality
(IV) ICDS are not permitting the changes in accounting policies without reasonable cause

14. Inventories and Investments
(I) ICDS are not permitting the use of standard cost method for computation of cost of inventories
(II) ICDS are covering the Securities held as stock‐in trade at cost or net realizable value whichever is lower
(III) ICDS are permitting to value category wise not ‘each’ individual security
(IV) ICDS are permitting to value at cost where securities not quoted or quoted irregularly.

15. Provisions, Contingent Liabilities and Contingent Assets
(I) ICDS are not permitting recognition of provisions and contingent liabilities until reasonably certain
(II) ICDS are permitting recognition of contingent assets where inflow of economic benefits are reasonably certain.

16. Construction Contracts and Revenue Recognition
(I) ICDS are not permitting accounting under Completed contract method
(II) ICDS are permitting accounting under percentage of completion method
(III) ICDS are not recognitioning of margins during early stage of contract
(IV) ICDS are not recognitioning of expected losses
(V) ICDS are permitting transitional provisions against open contracts as on March 31 2016
(VI) Cumulative revenue and cost as recognized before March 31, 2016 be considered for revenue recognition from transition date

17. Borrowing Costs
(I) ICDS are not defining any minimum period for classification of asset as qualifying asset
(II) ICDS are permitting to capitalise the borrowing costs where asset does not take substantial time to construct
(III) ICDS are not permitting the interest as borrowing cost against exchange differences as arising from foreign currency borrowings
(IV) ICDS are permitting the capitalization where active development of qualifying asset is interrupted
(V) ICDS are not permitting capitalisation of borrowing cost after asset is put to use
(VI) (a) ICDS are not permitting to capitalise the incomes from temporary deployment of unutilised borrowed funds
(b) Henceforth these incomes be taxed in year of earning
18. Effects of Changes in Foreign Exchange Rates
(I) ICDS are permitting the premium or discount be amortised over the life of contract against foreign currency option contracts and other similar contracts
(II) ICDS are permitting the exchange differences on translation of non integral foreign operations as income or expense

19. Additional Set of Books of Accounts under ICDS
(I) ICDS not requiring additional set of books of accounts
(II) ICDS are requiring to prepare additional records and reconciliations to be prepared and kept available for future purpose
20. Expected in Future
(I) ICDS are not considering the Guidance Notes & Accounting Standard Interpretations etc. as issued by ICAI which may impact the
computation of taxable incomes
(II) CBDT has made suitable modifications in Income Tax Return Forms & Form No. 3CD [Clause No. 13(f)] to determine taxable income in accordance to ICDs

21. Disclosure under ICDS
(I) For Each Class of Provision
(a) Brief description of nature of obligation
(b) Carrying amount of provision at beginning and end of period
(c) Additional provisions made in previous year and increase in existing provisions
(d) Amount used against provisions
(e) Amount of provisions reversed during previous year
(f) Amount of expected reimbursement against provisions
(II) For Each Class of Asset
(a) Brief description of nature of asset & related incomes
(b) Carrying amount of asset at beginning and end of previous year
(c) Additional amount of asset & related incomes recognized during the year
(d) Amount of asset and related incomes reversed during previous year


Efiling of Income Tax Return

What is a income tax return ?

It is a prescribed form through which the particulars of income earned by a person through various sources(like salary, business, professional fees, interest, capital gains, etc.) in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the Financial year, called as income tax return or ITR. It is like your report card in school but instead of  marks you have income and taxes.  It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly. Different forms are prescribed for filing of returns for different Status and Nature of income .


What is efiling ?

Efiling or electronic filing is submitting your income tax returns online. There are two ways to file your income tax returns. The traditional way is the offline way where you go the Income Tax Department’s office to physically file your returns. The other way is when you efile through the internet. Over the past few years, efiling has become popular because it is easier, doesn’t require prints of documents and can be done for free.


What are advantages of e-Filing?

  • Anywhere, Anytime files, 24 x7 x 365 service.
  • Easy, fast,free and secure
  • Faster processing and quicker refunds.
  • Value added services like viewing Form 26AS,  tracking of refunds,email, SMS alerts regarding status of processing and refunds.
  • And now it is also compulsory for most.


Is E-filing of Income tax Return compulsory?

  • E-Filing Returns is  compulsory for:
    Individuals earning over Rs 5 lakh a year. They are required to file their tax returns in the electronic format from AY 2013-14 (FY 2012-13) and subsequent assessment years.
  • Individual/HUF, having total Income of Rupees 10 lakhs. It was made mandatory from AY 2012-2013((FY 2011-12) and subsequent assessment years.
  • Individual/HUF /Firm auditable under section 44B of the IT Act, 1961. It was made mandatory for AY 2012-2013 and subsequent assessment years.
  • All Companies


Difference between AY and FY

Financial Year is period between 1st April to 31st March. Assessment Year is the next year in which the income is liable to tax.

For example, if your financial year is from 1 April 2017 to 31 March 2018, then it is known as FY 2017-18. The assessment year for income earned during this period would begin after the financial year ends–that is on 1 April 2018 till 31 March 2019.