Capital Gain on Shares? Wait Few More Days Before Filing Income Tax Returns
With the Income Tax (I-T) department changing the method for calculation of capital gains tax, taxpayer are being advised not to file returns in a hurry and wait for few more days. 
 
In a notification displayed on I-T e-filing site, the department says, "In case of long term capital gains (LTCG) arising on sale of equity shares or unit of equity oriented fund or unit of business trust on which securities transaction tax (STT) is paid, separate computation of capital gains should be made for each scrip or units of mutual fund sold during the year and aggregated amount should be provided in item No. B4 (ITR 2) or B5( ITR 3) (in case of residents) or item No. B7 (ITR 2)/B8(ITR3)(in case of non-residents)."
 
 
Ameet Patel, noted chartered accountant and former president of Bombay Chartered Accountants’ Society (BCAS), in a tweet has asked fellow CAs to wait for another update in next 10 days while requesting them to not to file tax returns with long-term capital gain (LTCG) just now.
 
 
Chirag Chauhan, another prominent and vocal CA raised question on the testing of these forms. In a tweet, he says, "(I-T) forms (were) made live in April. However they are not tested based on changes in the I-T Act. What is the use of making live if assesee cannot file (returns)?"
 
 
At present, capital gain is calculated based on consolidated value of share. However, the I-T department is planning to tax through individual scrip comparison method. 
 
The notification from the department says it has updated the utility (for uploading returns) and relaxed relevant validation rules. 
 
 
However, as suggested by both the abovementioned CAs, it would be better to wait for few more days, in case, you have capital gains from equities or equity oriented mutual funds.
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    COMMENTS

    ramanamurty malla

    2 months ago

    Why this last minute confusion. I took lot of efforts and prepared my LTCG individual scripwise after collating data from market value on 31st Jan2018, actual cost and sales value.

    Gopalakrishnan T V

    2 months ago

    The best way to collect capital gains tax is to make the STT more dynamic and collect the tax at source without expecting the people to file returns and pay capital gains tax. This is easier and more tax compliance effective. Ease of doing business is also well ensured and will help to keep the capital market for people FRIENDLY. Capital formation through capital market involving more retail investors is a must and the need to augment tax collection from capital market without any complications and corruption is also a necessity. To ensure both it is advisable to make the STT more dynamic and better tax compliance.

    Aditya G

    2 months ago

    It's a sign that the I-T Department and North Block are fatigued and out of quality manpower & bureaucrats.

    Stuff like this shouldn't happen at all. It's not the first time and it won't be the last, unless I-T Dept overhauls their systems & processes.

    CAIT releases White Paper on GST, asks FM to lower rates
    Traders body CAIT on Thursday urged the government to lower GST rates on various products, including auto parts and aluminium utensils.
     
    It also suggested a review of items placed under different tax slabs under Goods and Services Tax (GST) as many of them are overlapping.
     
    "Various items like auto parts, aluminium utensils etc. are not of luxurious nature (and) should be taken out from 28 per cent tax slab...," CAIT said in a statement.
     
    The trade body submitted a White Paper on GST to Finance Minister Nirmala Sitharaman, in which it emphasized the need to streamline the GST slabs and ensure that as a matter of policy, the tax rate on a raw material is not more than the tax rate for the finished goods. 
     
    Presenting the paper, CAIT Secretary General Praveen Khandelwal urged the Minister to simplify Form GSTR 9 and 9C as it demands various information which were not prescribed earlier and hence traders are unable to comply with the same.
     
    He also said that as per original announcement, the non-banking finance companies and micro finance institutions should be roped into the Mudra scheme to lend to the ultimate beneficiary and banks should be asked to lend finance to NBFCs and MFIs.
     
    While welcoming waiving-off of bank charges, Khandelwal suggested that in order to encourage adoption and acceptance of digital payments, the bank charges levied on card payments should be subsidised by the government directly to banks and neither the traders and nor the consumers should be charged any bank charges on card transactions.
     
    The traders' body has also urged the Finance Minister to form GST Lokpal in each state and at the Centre so that a forum is provided to all traders to redress their concerns.
     
    Welcoming the suggestion, Sitharaman assured the delegation that she will look into the issues raised by CAIT. The intention of the Government is certainly to simplify the tax procedure so that more and more people can easily comply with it, she said while urging traders to streamline their existing business format and comply with the law.
     
    In its White Paper on GST, the CAIT has raised many issues including advance ruling, reverse charge mechanism, rectification of GST returns, that the liability of paying GST should be devolved on the seller only and no action should be taken against the buyer, clarification of jurisdiction of CGST & SGST, HSN code issues, abolition of Form ITC-04, and so on.
     
    The CAIT has also urged a reduction in the tax rate from the current slab to the appropriate lower slab for items like hardware, mobile covers, food items, dry fruit, ice cream, food grains, malt/cereal-based health food drinks, paints, marble, used vehicles, two-wheelers, agricultural equipment, roasted chana, etc.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
     
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    SC: High Courts should know arrest possible for GST evasion
    The Supreme Court on Wednesday said that High Courts across the country should keep in mind that a person can be arrested for evasion of the Goods and Services Tax (GST) by the competent authority.
     
    The apex court had earlier upheld a Telangana High Court verdict which declined to entertain a plea against the provision of arrest.
     
    A vacation bench headed by Chief Justice Ranjan Gogoi observed that High Courts have not taken a consistent view on granting anticipatory bail to individuals accused for GST evasion.
     
    The court also said that the matter be placed before a three-judge bench to decide on the scope of law regarding the power of arrest. 
     
    The court issued notice on a petition by the Centre seeking clarification on the powers of concerned officials under the GST Act to arrest an individual without registering an FIR.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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