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Which ITR Should You File?

Which ITR Should You File?

akssai.com 14/04/2022 No Comments

The act of filing the income tax return is an official notification to the IT department of all of the sources of income and the tax that has been paid on that revenue.

Because tax is taken from the majority of payments, recipients of such income as salaries and interest on bank accounts believe they are not needed to file a tax return (ITR). The payment of taxes and the filing of an ITR are two separate and distinct legal requirements. The release of one does not indicate the release of another.

Benefits of Filing an ITR

If a person’s overall gross income surpasses the tax exemption level, they must file a tax return (ITR). If a person’s gross total income does not exceed the exemption ceiling, filing the ITR is not required. Even if a person’s income is tax-free, filing income tax returns may provide a number of benefits. Here are a few benefits.

Loan Approval Is Accessible

As proof of income statements, all major banks might request a copy of tax returns. This is a document that must be submitted in order for the loan to be approved. Filing income tax returns aids the process to get approval.

Obtain a Tax Refund

Even if your total taxable income is less than the basic deductible limit and you have no tax liability for the year, tax may have been deducted (TDS) from your earnings. The next step is to claim TDS refund and file the ITR.

Carry Your Losses Forward

If you file your return by the deadline, you will be able to carry forward losses to future years, which you can use to offset future income. This means that you can offset certain losses from the relevant income, lowering your future income tax bill. This isn’t feasible without submitting a tax return.

Stay Away From Penalties

If you failed to file your tax returns in accordance with the Income Tax Act, the tax officer has the authority to levy a penalty of up to Rs.5,000.

Which ITR to File?

ITR 1

You can use ITR 1 forms to file your income tax returns if you just have one house property and earn a salary, interest income, or rental income (total income up to Rs 50lks). This is the most prevalent type, however you can’t use it if you have capital gains or trading as a business income.

ITR 2

If you have a salary, interest income, income from a house property, or income from capital gains, you can utilise ITR 2 if you are an individual or a HUF who is not engaged in any company or profession. So, if you’re a person who exclusively invests in the stock market (and thus has capital gains), you’ll need to use ITR2.

ITR 3

ITR 3 can be used if you have a salary, interest income, rental income, capital gains income, or income from a business or profession.

You must utilise ITR 3 if you are an individual claiming trading as a company income. If you’re a trader and an investor, you can report trading as a business expense and investments as capital gains on the same ITR 3 form.

ITR 4

It is similar to ITR 3 but with a presumptive scheme if section 44AD and 44AE are utilised for business income computation. If any capital gains or losses must be carried forward, ITR 4 cannot be employed. So you can only use ITR 4 if you have business income (speculative and non-speculative), although it’s advisable to avoid it if you’re minimising your tax burden by doing so.

ITR 5

For Associations of Persons (AOPs), business trusts, Artificial Juridical Persons (AJPs), insolvent estates, investment funds, deceased estates, Body of Individuals (BOIs), Limited Liability Partnerships (LLPs), and enterprises, ITR-5 is needed.

ITR-6

This form must be selected by any companies that are not invoking Section 11 exclusions. It is filed electronically.

ITR-7

For individuals, including businesses, who are required to file returns under section 139(4A), section 139(4B), section 139(4C), section 139(4D), section 139(4E), or section 139(4F).

Conclusion

Over 6.63 crore tax returns were filed this year in March, for the assessment year 2021-22. The number of filings have been increasing gradually over the years, this stands as a testament of their significance.

Simpler ITR Forms 1 (Sahaj) and 4 (Sugam) are available for small and medium taxpayers. An individual with an income of up to Rs 50 lakh who earns income from a salary, one residential property, or other sources can submit a sahaj (interest etc). ITR-4 is to be filed by individuals, HUFs, and corporations with a total income of up to Rs 50 lakh and income from business and profession. People who earn money through a business or profession file Form ITR-3, while LLPs, businesses, and trusts file Forms ITR-5, 6, and 7.

The Income Tax Department has provided pre-filled Income Tax Return (ITR) forms for some taxpayers to make tax compliance easier. For filing returns, there are seven ITR forms available, four of which are now available in pre-filled XML format. The tax administration has asked taxpayers to double-check the pre-filled data and add any additional taxable income that is not pre-filled.

Amazon Seller GST

Everything You Should Know About Amazon Seller GST and How Accounting Filing made Easy for Amazon Sellers?

akssai.com 25/03/2022 No Comments

In India, the entire Amazon seller must apply for GST registration. Amazon is a giant online selling platform, and it is a common platform for both sellers and buyers. As from the whole world, buyers are purchasing the product from Amazon, and therefore it is easier for Amazon to deliver products across the globe.

It gives a powerful platform to the seller to step into the online market and has the chance to target a large scale of audience. But for that, the seller must become a certified seller partner on Amazon after getting GST registration.

Which Amazon Seller is required to register for GST?

It is stated in the GST law those people who are doing online business are required to pay GST each month. GST regulations never set the slab rate. If you are 10k or million, you have to pay GST.

Amazon provides a GSTIN number for doing business for those selling on Amazon. But the exemption is provided to those whose products are exempt from the tax.

Why is GST Registration Compulsory for Amazon Seller?

Each seller is paying GST taxes by selling products and services. It is an indirect form of taxation in which the seller collects tax from the buyer and delivers it to the government. In India, GST is introduced as a single form of tax, and its registration serves as the foundation for all tax lines like VAT, central, excise, and service tax. So Amazon sellers are also counted in the list, and they are allowed to do online business if they are complying with the GST regulations.

Procedure to Register for GST

Thanks to the GST portal, the registration process is quite simple and easy. You can quickly fill in the details in this portal and process the form online. Initially, you get a temporary registration number (TRN) using contact number, email, and the company’s permanent bank details. The seller can use this TRN number for login to initiate the process, and the seller has 15 days to submit the GST application before your TRN expires.

For making your form filling process more accessible, the GST seller is ready with additional information like:

  • Residence Proof: For amazon sellers, it required a home address and other documents, including electricity bills, property tax, deeds, rent agreement, and municipal khata copies.
  • Product list: The list should include all the things that sellers are selling on Amazon.
  • Bank Account Number: Account details should be Indian accounts.

Why Create GST Compliant Invoices for Amazon Sales

Many people do not know that GST affects how you invoice your Amazon customers. Amazon seller required two types of invoices:

Taxable Invoice’

This invoice includes the taxes applied to your buyer and other GST information.

Bill of Supply

Use this invoice while shipping GST-exempt products.

If any seller’s product listing fall in an easy ship or self-ship, you can use a convenient invoicing tool. This tool helps the seller automatically generate a GST compliance invoice and add the correct GSR rate in the product category. However, this option is suitable for casual sellers. But if the seller is running a full-fledged business, then use Quick books software. This software makes record keeping easier. And in the future, if you reconcile the transactions, you can download them from Seller central.

How Accounting Filing made Easy for Amazon Sellers?

E-Commerce platforms are an indispensable part of each human life. Many people are scrolling e-commerce platforms for shopping every day in India. With the increasing use of smartphones, the entry of global players like Amazon has fuelled the growth of e-commerce.

But besides only selling, the Amazon seller should also comply with its accounting and tax management. But due to rapid changes in the tax law in India, it is difficult for the Amazon seller to calculate and fill it.

Therefore consider how complex accounting and tax filing can go a long way in business. But worry not various software is available for the help of Amazon sellers for managing accounting and taxes.

Tax Compliance

  • Calculate GST easy within minutes
  • File GST returns quickly and always ready for tax all year long
  • Get a thorough understanding of tax reports

Easy Stock Management

  • Add products to the account and continuously track the product
  • Set pre-order and order on time, so stock never runs out of stock.
  • Create a prize list to make customized prices for new customers

Effortless Reconciliation

  • Get bank account feed automatically and quickly reconcile in minutes.
  • Easily manage millions of transactions with bulk action accounting
  • Avoid manual data entry by setting the bank account rules and putting categorization on autopilot.

 

Significant Reports

  • Get helpful information about your financials and make a good business plan for future growth.
  • For an understanding of tax, reports generate tax reports
  • Use reporting tags with products and use them to run filtered reports.

Where to Look for Reliable Approach to Calculate GST for Amazon Account?

If you have not considered any company to manage your GST account for Amazon, then consult our company. We can bring simplicity to your online sales and streamline your account management. Selling on Amazon is convenient and inexpensive.

 

Uncover Efficiencies with Modern Payroll Approach. 
Video

How to Simplify Payroll Accounting With Finance?

akssai.com 23/03/2022 No Comments

For any business, payroll accounting is one of the most critical tasks, but sometimes, the process is fraught with inefficiencies due to a lack of knowledge. On a Payroll accounting basis, the whole organization’s cash flow, risk, and full employee engagement effect if it is not paid correctly on time. This action can further lead to decreased productivity and detrimental to business performance.

What is Payroll Accounting?

Payroll accounting is the calculation, management, recording, and analysis of employee compensation. Moreover, payroll accounting also includes reconciling benefits, withholding taxes, and deductions related to compensation. In each country’s legal system, payroll accounting is highly influential.

How to Simplifying the Payroll Process?

The data in the companies are increasing every day, and also legislation is changing every day, which makes it challenging to maintain the payroll system requirements. Many multinational companies face difficulties understanding and complying with local laws and regulations in new areas.

Therefore, various leading companies adopt new technologies like cloud solutions that help their company data automate the process and minimize the risk. Here are some ways an organization can use technology to simplify the payroll process in a rapid work environment.

  • Centralize Your Records

In the present time, from the perspective of HR and payroll, maintaining each employee’s information is crucial. However, in the past, when no technology was used, it was tough to keep stacks of forms, scrolling through massive sheets and manual entering of the data in multiple platforms. Therefore storing employees’ data rather than at different places saves it one place. It will save them time and minimize the error of losing important information.

  • Implement Integrated Software and Records

If an organization uses separate systems for jobs like processing payroll and managing HR data, then it is tough to optimize the simplicity and efficiency of the payroll system. But suppose you integrated multiple data to a single software in which all data is collected together. In that case, this will create better visibility into data and also give you a clear vision of where to make changes quickly.

  • Digitize Your Data and Information

If your company is digitalizing payroll accounting data, it will reduce the paperwork and time sorting through notes, sheets, and paper. This digitalization approach will save your time and pay employees, generate reports, and provide critical information on time. This will ensure that your data is maintained accurately without any error.

Moreover, due to the pandemic situation, it encourages the companies to adopt a modernized method to payroll for the new workplace reality. Ultimately this digitalization will help the payroll teams reduce the disruption in continuing operations.

  • Visualize Workflows

It is proved that people work and learn better than visual tools and aids. Visual workflows are a helpful resource to help payroll professionals perform their job at their maximum capacity, speed, and accuracy. Seeing them complete each step successfully or reach their goal will make it easier to work methodically. Moreover, it can highlight the areas where payroll management requires improvement.

  • Manage to Compliance With Technology

Many companies lack the required resources to compete with changing technology requirements. However, understanding and applying legislative changes may be time–consuming, and various companies need to enhance the payroll team as the business grows.

But looking for an employee who is an expert in all fields is extremely difficult, and payroll is complicated. Adopting technology will automate the whole work like tax calculation, salary, and expenses.

  • Sync HR and Payroll Systems

If an organization uses two individual systems to manage the data, it can be time-consuming for the payroll employees and has the chance of errors. However, integrating your payroll teams, time, and HR into one system to manage the data helps you reduce the time and create a transparent data management channel.

The organization can see the data in real-time without waiting for the batch to process changes and updates through this synchronization. Having particular employee records across payroll, scheduling, performance, and beyond creates a better employee experience, and employees don’t have to manage the data in disjointed systems.

  • Provide Access to Employees

The introduction of dedicated software and technology in the department will not ultimately save the time of HR but also be beneficial for the workforce as a whole by providing access to their data. For instance, besides asking HR to make changes or see the latest payslip, it is better to give employees ownership and make small changes. It provides more control and maintains transparency between HR and employees.

Uncover Efficiencies with Modern Payroll Approach

Those companies that can cut back costly errors and inefficiencies should scale their payroll accounting with business growth and empower the people to pay attention to other business areas. Therefore best payroll companies in India (AKSSAI ProjExel) will reduce your burden from the HR department and spend their time to increase the efficiency of the business.    

Automation in accounting -2

How does automation in accounting change the size of the business?

akssai.com 09/03/2022 No Comments

Introduction – Automation in accounting

The field of accounting and finance has been ever-evolving. It is mainly because of its diversity and its connection with everyday happenings. Technology is dynamic and prone to introduce different changes in accounting and finance. The advancements have been beneficial for businesses in the long run. The challenges are many and so are the growth opportunities. So, the businesses have a competitive edge by investing in such things.

Automation is doing rounds to a great extent right now. Its amalgamation with the accounting and financial concepts is expanding the horizons of finance professionals. It puts them in an efficient position that is much better than what history had in store for them.

So, let’s understand the concept of automation in the field of accounting.

In simple terms, the concept refers to reducing the manual stress and converting the same for automatic working. In other words, it is recognized as the adoption of computerized accounting software that minimizes the number puzzle by giving it a technological touch.

This is either rocket science or anything new or challenging. Computerized accounting has been in the market for quite some time. It has been helping businesses for at least two centuries. It has the following benefits for various companies:

  • Reducing human labour.
  • Saves time.
  • Saves money, investment, and resources.

You’ll easily spot that many factors tend to get affected by the introduction of innovation globally. Accounting is prone to factors that affect it on a negative note. But, the case is different when it comes to automation. From avoiding the tedious tasks that many CAs and CFAs have to do, here are some ways how automation affects businesses and its shape for the better.

Time saved

The most tangible benefit of automation is the amount of time it saves. If someone or something else does the manual work you’d typically do, you’re going to have more time on your hands.
For accountants, the enormous time-saver comes during financial closing. If your team has been using its tools correctly, there shouldn’t be anything to reconcile! Most of the data you’d usually check and copy across systems has already been reviewed and copied.
Documents (like receipts) are also included, leaving you with a complete exit from the start. It then literally takes a click to export this for the benefit of any business and its related service lines – and all other expense claims – to your accounting and reporting tools. So what usually takes days or weeks can be done in minutes.

 

Higher productivity

An obvious result of the time savings above is producing more in the same period.
This likely means fewer billable hours for external accountants, which may be frightening. Businesses can function well if they are able to reduce their investments and development costs. Reducing the cost expenditure will help them improve both the quality and quantity of the outcomes. This way there is no shortage followed by a smooth functioning of the demand and supply chain mechanism of the global market businesses.

 

Data accuracy

We all know the expression that to err is to be human. People are well known for making mistakes.
The beauty of machines is that they don’t often commit minor computing errors. Accounting tools can create thousands of ledger entries in seconds, with no real risk of mishandling data.
Of course, this still gives rise to the question related to the need a good accountant to verify the work and manipulate that data, but more on this shortly.

 

Fast data retrieval

Some accountants will remember the not-so-long-ago days of physical storage rooms full of hundreds of files. To retrieve a document or review a file belonging to any business or any business line, you had to go hunting for it in another room. Sometimes, the business or any data files weren’t even in the same building!
It’s now straightforward to find virtually any file you need in seconds. Any entry in your accounting software for the business can be found almost instantly.
Accounting automation is designed to make documents and ledger items easy to categorize, name, and store safely, making finding them a breeze.

 

Secure file storage

Another significant burden on companies and accountancy firms is storing paper records for 7-10 years (depending on local regulations). Thankfully, government tax offices worldwide are slowly getting on board with e-receipt storage – digital copies of documents instead of paper files.

 

Conclusion 

Automation for the accounting field has a lot of scope of betterment for businesses. Businesses have ample opportunities, followed by a better hand at investments and amalgamations for the upcoming times.

New E-invoicing Policy Of Indian Government

akssai.com 03/03/2022 No Comments

The Goods and Service Tax council is moving forward with the concept of ‘e-Invoicing’ which is called ‘electronic invoicing’ in other terms. This is a system introduced by the GST council in which the B2B invoices are authenticated in an electronic manner by GSTN. the invoices are further used on the common portal for GST handling. Under the electronic invoicing system, for the invoicing process, an identification number is issued against every invoice. It is generated by the Invoice Registration Portal (IRP), and the same is managed by the GST Network (GSTN).

When was it launched for the first time?
The National Informatics Centre had launched the first IRP at the official website www.einvoice1.gst.gov.in
All the invoice information will be liable to get transferred from this portal to both the inclusions namely the GST portal and e-way bill portal. The transfers are done in real-time. Therefore, such transfers help to eliminate the need for using manual data entry while filing GSTR-1 returns followed by the generation of part-A of the e-way bills. The main reason behind this is that the information is either passed directly by the IRP to the GST portal.

The transportation of goods and services from one location to the other is facilitated by the process of filing of ‘e-Way Bills’ on the common platform that is present in the form of the GST portal.

Importance of e-invoicing policy of the Indian Government
e-Invoicing has been made mandatory from 1st October 2020 to different kinds of businesses whose annual aggregate turnover has exceeded a market sum of Rs.500 crore as per the limits. The market revenue should be belonging to any of the previous financial years from 2017-18 to 2019-20. From the beginning of the 1st January 2021, e-invoicing has become applicable to all the businesses exceeding the Rs.100 crore turnover limit that has been attained in any of the financial years between 2017-18 to 2019-20. Likewise, the same concept has been extended to various businesses with a total turnover of more than Rs.50 crore from 1st April 2021.
However, it is important to note that e-invoicing shall not be applicable to the following categories of registered persons. No matter if they match the prescribed turnover. The same has been notified in the CBIC Notification No.13/2020 – Central Tax:

  • An insurer or any banking company. It can also be a financial institution, including an NBFC
  • A Goods Transport Agency (GTA)
  • A registered person who is indulged in supplying passenger transportation services
  • A registered person who is indulged in supplying services by way of admission to the exhibition of cinematographic films in multiplex services
  • An SEZ unit that has been excluded through the CBIC Notification No. 61/2020 – Central Tax
  • A government department followed by a local authority excluded from the CBIC Notification No.

23/2021 – Central Tax
Way-forward Developments
There have been many developments related to the e-invoicing policy and in its 35th meeting. In this meeting, the GST Council have had discussions and further, have decided to implement a system of e-Invoicing. The meeting discussed that the concept of e-invoicing will be applicable to specific categories of persons only. However, it should be understood that the policy of e-Invoicing does not imply the generation of invoices on the GST portal.

This is nothing more than a myth.
The truth is that the concept of e-invoicing involves the process of submission of already generated standard invoices on a common e-invoice portal. Thus, it helps to automate multi-purpose reportings with the help of steps including the entry of one-time input of invoice details. The CBIC had notified for the preparation of a set of common portals for e-invoices through the Notification No.69/2019 – Central Tax.

Latest Updates
If the aggregate amount of turnover has exceeded the amount of Rs. 20 crores in any preceding financial year that is 2017-2018, 2018-2019, 2019-2020, 2020-2021, 2021-2022, then the e-invoicing will be applicable from the beginning of the upcoming financial year of April 1, 2022.