Paying over Rs 50k as rent? Now you must cut TDS and deposit with I-T dept

Govt has tightened several rules governing real estate to step flow of black money in the sector

 tax, income tax, TDS

For the past four-five years, the income tax (I-T) department has been consistently tightening its noose around realty transactions. From making registration of rental agreements with PAN details of both the tenant and owner mandatory to the latest — deduction of TDS (tax deducted at source) on monthly rental of Rs 50,000 and above — rules have been tightened significantly to ensure black money isn’t generated from this sector.

The Central Board of Direct Taxes’ (CBDT’s) latest salvo targets people who claim significant amounts as house rent allowance (HRA), sometimes with the help of false documents. From June onwards, those who pay monthly rental of Rs 50,000 need to deduct 5 per cent TDS and deposit it with the IT return department.

This TDS trail will serve as proof for people claiming high HRA. The provision was introduced in the Finance Bill, 2017. “The idea behind the provision is to make sure taxpayers don’t claim fake HRA exemption and also to trace those who don’t disclose their rental income. When a trail is created, it will be possible to detect such individuals in the system,” said Kuldip Kumar, partner and leader, personal tax, PwC India.

Interestingly, the government has also made the provision that if multiple tenants stay at the same place and pay total rent of Rs 50,000 and above per month, they need not deduct TDS. But, all tenants’ names should be in the registered agreement with the owner. On the other hand, if the entire rent is paid by a single tenant and the others are merely paying that person, then TDS is applicable. Clearly, CBDT has given relief to people staying together, especially in big cities and paying high rent to stay near their office or for any other reasons…read more…

Dread filing tax returns? Ready reckoner on the forms you need to fill

There are total 7 ITR forms available for e-filing

Though filing of income tax returns is a process to be done every year one should be aware of changes made by the government in the income tax return forms in order to minimize the chances of error and rework. This year a lot of changes have been made in the ITR forms.
For instance, taxpayers who have filed ITR 4 last year are now required to file ITR 3 this year. So one must be aware of these changes in order to file the correct ITR form applicable to you. The income tax department will not consider your ITR as valid if you file the wrong ITR Form.
There are total 7 ITR forms available for e-filing

Out of theses 7 forms, only ITR 1, 2, 3 and 4 are applicable for salaried class and individuals. ITR 5,6 and 7 are applicable to partnership firms, Limited liability partnership(LLP), Association of persons and companies.

For Salaried Individuals

  • ITR 1 Sahaj and ITR 2 are available for the salaried individuals and your sources of income will decide which form to use. ITR 1 sahaj is a simplified one-page form introduced by the government to ease the process of tax filing by salaried individuals. It is applicable for the salaried individuals having income up to Rs 50 lakh. Income can be from salary, pension, house property, interest income or agricultural income up to……
For Business individual
  • There have been changes in the ITR form applicable for business individuals this year. ITR 3 and ITR 4 Sugam are available for business individuals and HUF for filing the tax return for FY 2016-17.One must be aware of these changes as last year ITR 4 and ITR 4S were applicable for business individuals and ….(read more…)

Top 5 common mistakes to avoid while filing your income tax returns

Here is a list of things to help you sail through

With the due date of July 31 fast approaching, it is that time of the year again when the taxpayers need to file their I-T returns. After all, filing of tax return is compulsory for everyone whose gross total income exceeds the basic exemption limit. The basic exemption limit for individuals is Rs 2.5 lakhs and for senior citizens, it is Rs 3 lakhs.
So, if your income exceeds this limit, you need to file the tax return by the due date. eFiling of tax return requires caution to avoid mistakes. Keeping in mind few things can make your tax filing a breeze.
Here is a list of things to help you sail through:
  • Choose the right ITR Form applicable
  • Claim all the Deductions
  • List all sources of income including Interest Income
  • Reporting all bank accounts
    Report Exempt Income
E – Verify your return or send the ITR V acknowledgement on time – 
The process of filing return does not get completed till the returns are verified. The govt gives you the option of either sending the ITR V acknowledgement within 120 days of filing the return to their office or you can e -verify your returns online also. If you e – verify the returns online, then there is no need to send the …..(read more…)

SuperNight pack: Vodafone counters Jio with unlimited internet at Rs 6/hour

SuperNight packs will enable users to download unlimited data for five hours at a fixed price


Vodafone India on Monday announced a new product — Vodafone SuperNight — with immediate effect for prepaid customers.

According to the company, the new product at Rs 29 will enable unlimited 3G/4G data usage and download for five hours.

“The pack can be activated any time of the day but will be applicable only during the subsequent five hours between 1 a.m. to 6 a.m.,” it said in a statement.

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Vodafone is offering Internet access between 1am and 6am at Rs 29 a day. This comes out to less than Rs. 6 per hour.In contrast, Reliance Jio’s services cost about Rs. 10 per day for 1GB of 4G data.

The recharge pack can be purchased anytime during the day, but will kick in at 1 am only. The new SuperNight pack is available to purchase from digital channels, offline outlets, and via the *444*4# USSD code…..More Plans

Make in India fighter jets? Tata, Lockheed join hands to build F-16s

Will compete for contract with Gripen E, built by Saab-Adani combine

(Seated left to right) Mr. Sukaran Singh, CEO & MD of Tata Advanced Systems Limited, and Mr. George Standridge, Vice President of Strategy and Business Development, Lockheed Martin Aeronautics, sign a letter of intent to produce the F-16 Block 70 in

US defence giant Lockheed Martin and India’s Tata group signed an agreement on Monday to jointly build the F-16 Block 70 fighter in Make in India, should New Delhi opt for the American aircraft in the procurement of single-engine fighters for its air force.

Highlighting the importance of this contract for the Tata group’s aerospace and defence aspirations, Chairman Emeritus Ratan Tata attended the signing ceremony at the ongoing Paris Air Show in France.

The Tata group has earmarked Tata Advanced Systems Ltd (TASL) to build the F-16 in India with technology and manufacturing facilities transferred from Lockheed Martin.

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Coming ahead of Prime Minister Narendra Modi’s visit to the United States this month, Lockheed Martin’s inking of this joint venture (JV) – which would have required formal clearance from Washington – indicates that, despite President Donald Trump’s promises to keep skilled jobs in the US, his administration is willing to transfer the ageing F-16 production line from Texas to India.

TASL and Lockheed Martin already have a joint venture (JV) that manufactures airframe components in Hyderabad, including for the C-130J Super Hercules airlifter and the Sikorsky S-92 helicopter.

However, the manufacture of F-16 Block 70 would be a far more ambitious project. This would first require the Ministry of Defence (MoD) to select the Tata group as an Indian “strategic partner” for aircraft production. Next, the IAF and the MoD would have to choose the F-16 Block 70 as the air force’s single-engine fighter aircraft. That multi-billion dollar procurement has already kicked off with the issue of a global request for information (RFI) by the IAF.

MoD and IAF sources confirm aviation market intelligence that the IAF’s chosen fighter is likely to be either the F-16 Block 70, or the Gripen E fighter that Swedish company, Saab, has offered to India…(read more…)

Wall Street hits record highs on strong technology, health stocks

Nasdaq’s biotechnology index rose 2.5% in its biggest one-day gain since February

 A souvenir license plate is seen outside the New York Stock Exchange in Manhattan, New York. Photo: Reuters

US stocks(wall street) rose on Monday, with the S&P 500 and the Dow hitting record highs with growth sectors such as technology in favour again as investors appeared to regain confidence in the economy after upbeat comments from Federal Reserve officials.

Nasdaq’s biotechnology index rose 2.5 per cent in its biggest one-day gain since February while the S&P’s healthcare index had a record-high close.’s Friday announcement that it would buy Whole Foods and an upbeat tone from Federal Reserve speakers seemed to help reassure investors after the US central bank’s rate hike last week, according to J Bryant Evans, portfolio manager at Cozad Asset Management, in Champaign, Illinois.

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It looks like a bet that interest rates, such as the 10-year yield, are bottoming out,” said Evans. “It’s a resumption of this idea that the economy is in decent shape.”

He added that a “push in M&A tends to propel the market” and that the Amazon/Whole foods $13.7 billion deal was a “tangible sign the mergers and acquisition environment is pretty good right now.”

The Dow Jones Industrial Average rose 144.71 points, or 0.68 per cent, to end at 21,528.99, the S&P 500 gained 20.31 points, or 0.83 per cent, to 2,453.46 and the Nasdaq Composite rose 87.26 points, or 1.42 per cent, to 6,239.01.

The S&P’s financial sector was also one of the benchmark’s strongest gainers with a 0.98 per cent rise after New York Federal Reserve President William Dudley said US inflation was a bit low but should rise alongside wages as the labour market continues to improve, allowing the Fed to continue gradually tightening monetary policy.

The Fed commentary last week had surprised investors who expected more caution after some weak US economic data…(read more…)

TV, smartphone, fridge, gold coins: What gets expensive after GST

However, luxury cars like Mercedes and Audi will get cheaper after GST rollout

 How will GST impact luxury goods? Let's find out

With the Parliament clearing the way for four crucial GST bills in its April session, India’s landmark tax reform is all set for its rollout on July 1. While it is expected that most goods may become cheaper after the implementation of the Goods and Services Tax, quite a few services and some goods will become more expensive after the tax comes into effect. It is also expected that the Indian economy will see an inflationary effect immediately after the implementation of the GST.

The current taxes are levied on account of central excise duty rates, embedded central excise duty rates, service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, among others.

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Here are some goods that will be expensive after GST:

  • Luxury cars to become cheaper
  • Audio Systems/Home theatres
  • Televisions
  • Refrigerators
  • Watches
  • Mobile phones

GST Prices of the goods  → Click on the Link   

BMW to invest Rs 130 cr in India, will launch new version of the 5 series this month

The company is looking to expand its dealer network in the country

 BMW to invest Rs 130 cr in India to enhance operations

German luxury carmaker BMW is investing another Rs 130 crore in India to enhance operations, taking its total investment in the country to Rs 1,250 crore.

The company will launch new version of its locally manufactured 5 Series later this month and 6 Series Gran Turismo (GT) model next year to strengthen its product portfolio in India.

“Since 2007, we have been consistently investing in India. This year, we are going to increase our investment further to up to Rs 1,250 crore on a cumulative basis,” BMW India President Vikram Pawah told PTI.

BMW has invested Rs 1,120 crore in the Indian operations so far.

The new investment will go into BMW group operations, including Motarrad (two-wheeler business) as well as the financial services arm, he added.

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With the fresh investments, the total investments on BMW group operations in India will go up to Rs 520 crore and on BMW Financial Services to Rs 730 crore.

The company is looking to expand its dealer network in the country. It currently has 18 partners and is present in 30 cities.

“Besides, we have 63 touch points. Out of these, we have 41 sales outlets. So we want to take these 41 outlets to 50 by 2018,” Pawah said.

In other emerging towns, in addition to 30 major cities, the company utilises its ‘Mobile Studios’ to expand the market further.

On new product launches, he said: “As part of our power to lead strategy, product offensive starts. In next two weeks, we will be launching the new 5 Series.”

The model has played a big role in the success of BMW in India. Since 2007, the company has sold around 66,000 vehicles in India with 5 Series having contributed close to 30 per cent of the total sales…(read more…)

Blackberry, VoxSmart partner to enable banks to monitor WhatsApp chats

Firms partnered to help financial corps comply with EU’s Markets in Financial Instruments Directive


To enable financial institutions to monitor data on WhatsApp Chat and other encrypted messaging platforms in line with the upcoming European Union (EU) directive, BlackBerry has partnered with the leading mobile surveillance and compliance firm VoxSmart.

Together with BlackBerry UEM (Unified Endpoint Management), which connects and manages endpoints, VoxSmart’s ‘VSmart’ will provide financial services firms with the ability to capture, record, store and analyse mobile voice, text and third-party instant messaging applications such as WhatsApp and WeChat.

Together with VoxSmart, we can enable businesses around the world to effortlessly capture conversations on endpoints including smartphones, wearables, tablets and laptops,” said Florian Bienvenu, Senior Vice President of EMEA Sales, BlackBerry.

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This joint solution is an excellent example of how BlackBerry is leveraging its software portfolio and developing strong partnerships to secure the Enterprise of Things,” Bienvenu added in a statement.

The companies have partnered to help financial services firms comply on time with the European Union’s “Markets in Financial Instruments Directive” (‘MiFID II’).

MiFID II, which comes into effect on January 3, 2018, demands that all financial services firms in Europe must keep records of all services, activities and transactions for at least five years.

Records include all electronic and instant messaging communications, telephone conversations and text messages related to or intended to conclude in a transaction, even if one does not occur.

VoxSmart is the only global mobile compliance solution that can capture, record, store and analyse both voice and third party instant message applications such as WhatsApp and WeChat,” said Oliver Blower (read more…)


70% of train tickets booked on Paytm are from Tier-II and III cities

Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad come out as 5 top Tier-II, Tier-III markets


Recent data by Paytm show that more than 70 per cent of all train tickets booked on Paytm over the past year is from Tier-II and Tier-III cities, in a sign of the increasing reach of digital transactions in non-metro regions after demonetisation.

The study was conducted based data from more than two million rail tickets booked on Paytm over the past year. It was found that while the average ticket size in Tier-I cities is Rs 530, in Tier-II cities it is only Rs 350, pointing at semi-urban and rural India’s price sensitivity. Interestingly, 70 per cent of women booked their train tickets more than a week in advance, while the same was applicable for a mere 30 per cent of men.

In recent months, Paytm has witnessed exponential growth in travel with more than 10 million tickets sold in financial year 2017. Our five biggest Tier-II and Tier-III markets are Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad. This year, the company is aiming to be the country’s largest destination for all travel booking needs,” the report said. Paytm is the first horizontal e-commerce major to enter into the travel business, a domain that was dominated by vertical players.

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On the right track


  • The five biggest Tier-II and Tier-III markets are Ahmedabad, Kanpur, Chandigarh, Varanasi, and Allahabad
  • The average ticket size in Tier-I cities is Rs 530, while in Tier-II its only Rs 350, pointing at semi-urban and rural India’s price sensitivity
  • Seventy per cent of women booked their train tickets more than a week in advance, while the same was applicable for a mere 30 per cent of men
  • In recent months, Paytm has witnessed exponential growth in travel with more than 10 million tickets sold in FY17
  • The top preferred routes by passengers this summer include New Delhi–Lucknow, Visakhapatnam–Secunderabad, New Delhi–Kanpur, Chennai–Bengaluru, Ahmedabad–Surat and Pune–Solapur.

(read more…)