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08 September 2020

EXCEL TUTORIAL | PART-I| BASIC INTRODUCTION


Excel is very useful and powerful software. In this tutorial series, you should learn about excel from the very beginning. This is the first part of these tutorial series and today we are about to know some basic features and functionality of Excel in order to understand excel in a very smooth way, Now let us jump to the topic.

Microsoft Excel is a spreadsheet program in which you can handle form basic to complex arithmetical and statistical operations. You can create templates or start from scratch to perform any statistical or analytical works you need. In short, the scope of excel is next to endless in this particular field. There are many alternatives available to Ms. Excel, but still, Excel is better than those other competitors.

To understand a spreadsheet program, first of all, we have to know what is a spreadsheet. A spreadsheet is nothing, but a collection of multiple rows and columns. A horizontal line is known as "Row", and a vertical line is known as "Column" and when a horizontal line crosses a vertical line, a point called "Cell" is created. So Cell is the intersection point between the rows and columns. In Excel, the Rows and Columns are named numerically and alphabetically respectively. In this way, each cell has a unique alphanumerical identity concerning its parent column and row.

For example in Excel, the name of the very first column is "A" and the very first row is  "1". Hence the name of the first Cell is "A1" which can be also seen in Name Box. On the right side of the name box, there is a wide box which is called Formula Bar. Anything a cell contains, you can view and edit in this formula bar. Names of the Cells are displayed in the name box and the content of the cells like any formula or data is shown on the Formula Box.

In Excel, cells can be formatted in terms of font style, font color, cell color, cell type, orientation, and many other ways.

An Excel file is called "Workbook". A workbook is a collection of one or multiple worksheets.


Those worksheet is being interlinked by each other, like the cells also. This interlinking between cells is called cell reference. The right down corner of a cell has a bold black spot, called fill handle. The use of a cell reference is fulfilled by dragging the fill handle horizontally or vertically.

The cell reference in excel is differentiated by three types, that's been
1)Relative Reference.
2)Absolute Reference.
3)Mixed Reference.

1)Relative Reference
The drag and drop handle of any cell in excel follows the rule of a Relative reference by default. As an example: create a table of three columns (ie: A, B, C) & five rows (ie: 1, 2, 3, 4, 5). Put some data in column A, and column B, and get the summation of  Column A & B, in column C with the right formula. Now if you drag the fill handle from C1 to row 2,3,4 & 5, you will observe that all results in column C will take the input from its respective row (ie: C2 = A2+B2; C3=A3+B3 & so on...).

2)Absolute Reference
With the help of absolute reference, you can instruct the fill handle to follow the given cell reference exactly for all its relative cells. Unlike relative reference, here the cells do not follow any relative cells either horizontally or vertically. To use the absolute reference you have to enter the dollar ($) symbol before the row & column names. Alternatively you can press the "F4" button from the keyboard, and let the "$" symbol to be automatically entered before both the row & column names. For example, if the cell you want to refer is "=A1", then it should be entered like "=$A$1". Now once you drag the cell, you will see that all the relative cells will follow the exact content of A1.


3)Mixed Reference

If you want the fill handle to follow relative reference while dragging horizontally but to follow absolute reference while dragging vertically, then you should enter the "$" symbol only before the row name and not before the column name. for example, if the cell you want to refer is "=A1", then it should be entered as "=A$1". You can also do the opposite if you want the fill handle to follow relative reference while dragging vertically but to follow absolute reference while dragging horizontally, In both cases, it will be a mixed reference.

Remember, pressing the "F4" button when the formula is highlighted, will always toggle between different cell references.

Estimated reading time: 3 minutes, 46 seconds. 
Contains 756 words

24 August 2020

Deductions under chapter VI A of income tax act 1961


There are different types of deduction are available under chapter VI A, it is very beneficial to any taxpayers to have a piece of knowledge about this chapter of Income Tax. It can save lots of money and it is not illegal as the benefit is provided by the Income Tax Department as tax-saving benefits. Remember you have to claims these deductions in the income tax return to avail the benefits. Otherwise, you will lose these benefits even if you are eligible. So let's learn this deduction one by one.

DEDUCTION U/S 80C

If you want to take benefits under this section, you have to consider certain kinds of investment in your portfolio like a life insurance policy, provident fund, PPF, etc.

DEDUCTION U/S 80CCC

The contribution of your pension scheme under section 80CCC is also deductible. For any kind of renewal or any sum paid for an existing life insurance policy, it also covered by this section. Remember, prior April-2006, these benefits were not applicable for any of such investments.

DEDUCTION U/S 80CCD

This section allows you to claim benefits for your investment in some pensions scheme specified by Central Government. You can invest from your taxable income in schemes such as Atal Pension Yojana or National Pension Scheme, then you are eligible to get this benefit.

Now, remember, you can avail maximum benefit of 1.5 lakh from these three sections altogether.

 DEDUCTION U/S 80D

Under the section, you can claim a deduction for the amount spend in medical insurance premiums. The section allows to avail of a deduction of Rs. 25,000 for self, spouse & dependent child (Max 2 children) and addition Rs. 25,000 for parents. 

In case parents are aged above 60 years then you can claim up to Rs. 50,000 for parents (Rs. 25,000 for self & family + Rs. 50,000 for parents older than 60 years)

If the taxpayer is also older than 60 years then this section allows Rs. 50,000 for self & family + Rs. 50,000 for parents older than 60 years, hence the total allowable deduction will be Rs. 1,00,000 for this case.

DEDUCTION U/S 80DD

In addition to 80D, this section further extends the benefit for medical expenses by allowing taxpayers to claim a deduction for any disabled person, who is fully dependent on the taxpayer. In this case, the expense incurred for his/her maintenance can be claimed under this section with a maximum limit of Rs. 75,000 in case of minor disablement or Rs. 1,25,000 in case of severe disablement.

DEDUCTION U/S 80DDB

Under this section, the taxpayers can avail the benefit if he/she spends for some specific deadly disease like cancer, aids, etc. The maximum deduction is Rs. 40,000 for any non-Sr. citizen taxpayer but it can be extended up to Rs. 1,50,000 in case of Sr. citizen. Remember, you must have the certificate of the disease, obtained from hospital in order to claim any deduction under this section.

DEDUCTION U/S 80GGC

If the taxpayer donates any sum to a political party, then he/she can claim this amount as a deduction from taxable income under section 80GGC. This section allow the taxpayer to claim 100% of his/her donation to the political party, once the donation is in non-cash form. Any donation in cash is not eligible to get the benefit under this section.

DEDUCTION U/S 80G

A donation in any charitable institution is also entitled to deduction under section 80G. The claimable amount varies from 50% to 100% depending upon the nature of the institution, its formation, and many other factors. Make sure to know about the institution and the tax benefit it provides, before making any donation to the institution.

DEDUCTION U/S 80E

This section offer a deduction to students, who have a loan for higher education purpose. He/she can claim 100% of the interest on such loans up to 7 years maximum.

DEDUCTION U/S 80GG

Section 80GG provides the benefit to claim deduction on payments made as house rent. This benefit is not eligible if the taxpayer do not have a rented house. The maximum benefit under this section will be least of the followings three:
    1. 25% of the total income
    2. Rent paid over 10% of income
    3. Maximum Rs. 5,000 per month

DEDUCTION U/S 80QQB

This section allows any author of a book other than the textbook, to claim deduction on his/her royalty income. This benefit is limited up to a maximum deduction of Rs. 3,00,000.

DEDUCTION U/S 80RRB

Like the previous section this section also offers deduction on royalty income, but this time the benefit is not for authors, rather than a patent holder, who can enjoy the benefit of this section.

DEDUCTION U/S 80U

Under this section, taxpayers with any physical disability can claim his/her expense for such disability as a deduction for his/her taxable income. This section allows a maximum deduction of  Rs. 1,25,000.

DEDUCTION U/S 80TTA

This section allow taxpayers to claim the interest as a deduction, which he/she received on the savings bank account. Under this section the maximum deduction allowed is Rs. 10,000, however, if the taxpayer earn interest from multiple savings accounts, then he/she can claim the aggregate amount of all those interests, subject to the maximum limit of Rs. 10,000.

DEDUCTION U/S 80TTB

This section offer the same benefit as the previous section with an extended threshold limit up to Rs. 50,000 but this section is only eligible for Sr. citizen.

Estimated reading time: 4 minutes, 25 seconds. Contains 884 words

12 August 2020

How to file Income tax return online| ITR1 For AY 2020-21

As I writing this article just after the lockdown stage in India, all ITRs are not available in the online portal of Income tax department. Currently you can only file 4 available ITRs ie, ITR1, ITR2, ITR3 & ITR4.

Before filling the ITR1 be sure to choose the right ITR for you. Check this video to be sure.

So let's come to the topic "How to file ITR1 online". Well actually you can only file ITR1 (also called SAHAJ) in an online web form. In case of other ITRs you have to download either Excel or Java return preparing utility and then upload the generated XML file in the online portal (obviously after login).

ITR1 is also called SAHAJ, because of it's simplicity. It has the lowest number of tabs and schedule. So don't be panicked, be comfortable to learn it today. So, lets learn.

Step-1 [Opening the ITR-1 Form]

At first you have to login into the online portal of Income tax department ie, www.Incometaxindiaefiling.gov.in once you are logged in, you can see two links in the dashboard. The first link, named "Filling of Income Tax Return" is what you need to follow to file itr1 online. The second link, named "View Reruns / Forms" is to check previously filled return or acknowledgement, if you want to download or print. So follow the first link and you will find a small firm where your PAN number is already given and you need to fill the Assessment year for which you want to file a return, ITR form Number and submission mode. If you choose ITR1, then you can get two option in the submission mode. You can select Prepare and submit online, which is the only available in case of itr1 and the second option is upload XML. So choose the first option as it is the widows easiest way to file a return and click continue button. You may asked for the filling type to choose . In regular case select original/revised return. If you provided your bank accounts before, you may farther asked to choose a bank account for refund. So, choose as per your preference and continue.

Step-2 [General Information]

Now you can see a form with 9 tabs and three button above & below the form for Submit, Save & Exit respectively. Always remember to save your work, it is a good practice. Now the 1st tab is containing some general instructions. Nothing you have to do with this tab except reading those bunch of texts. So click on the next tab, which is "Part A General information.

In this tab you can see some field pre-filled with your general information you provided at the time of online registration like PAN, Name, Date of birth and many more like this. Check all fields and enter where the information is not given. Remember all fields with red star (*) marks are mandatory rest are optional. Now once you fill all the important information, move to the A20. Section below and choose "Filed u/s 139(1)" for regular return, or choose any other given options as of your case. Do not choose "Filled u/s" if you filling return in response of notice from income tax department, instead choose "Filled in Response to notice u/s" and then select the proper section as per the notice you received. Now in the next field, mention whether you are filling the return without having the liability to fill it but due to the seventh provision of section 139(1). Select No if it is not applicable to you. If you select No, then other fields under it will become disabled otherwise you have to answers those fields. After you finishing with this tab, move to the next tab which is "Computation of income and Tax"

Step-3 [Computation of income and Tax]

Under this tab you should enter your gross salary in three fields. In the first field is "Salary as per section 17(1)". Enter your annual salary here (without any perks or profit in lieu of salary). The second field is "Value of perquisites as per section 17(2)". In this field enter only if you received any kind of perks from your employer like, Rent free accommodation / accommodation at a concessional rate or if your life insurance premium paid by employer. The third field is profit in lieu of salary as per section 17(3). As the name suggests, you have to enter if you received any amount of profit in the way of salary. After this you are allowed to enter any kind of exempted allowances if you receive from your employer. At first select the nature of exempt allowance, if you select “other” then provide the details in the description field and then provide the amount of the exempted allowance. You can click on the add button to enter multiple exempted allowance. Now you can see some fields below will be auto calculated (like net salary , Standard deduction etc.). Move on the “Professional tax u/s 16(iii)”. Enter the accumulated value of P.tax if deducted from your salary, otherwise leave the field blank. 

In ITR1 you can show only one house property income. To do so, scroll down and find the “Type of house property” and select whether the property is self occupied or let out or even if deemed let out (any vacant property which is not self occupied). In case of self occupied property all fields will be disabled except “Interest on borrowed capital” and “arrears/unrealized rent” so you can take the benefit out of this. If you have not taken any loan against your self occupied property , then sadly this benefit is not for you, and if you have no arrears or unrealized rent to put here then you can skip this field too. Remember if you have multiple house property then ITR 1 is not applicable for you, you have to select at least ITR 2 or whichever ITR is applicable for you.

Now after Salary and House property you will find the section of “Income from other sources”. Find the “Nature of Income” and select if you earn anything from other sources like Interest from savings, RD, FD, Family pension or any other. Move to the amount field and enter the amount here. If you have multiple of these, you can add another row by simply clicking on the “Add” button.

By further scrolling down, you will find the section of deductions under Chapter VIA. Here you can claim the deductions, if you made one or more tax saving investments. If you are not sure about those various sections feel free to watch my video on this topic.

After claiming these deductions, you also have a section for “Exempt income” below, where you should show all of your incomes which are exempted by section 10 of Income tax act. Click on “Add”  button if you have multiple.

Below, in part D you can check all the computation for your income tax, everything here will be done automatically except one field, that is “Relief u/s 89”. Enter the relief amount if you want to claim any, but remember to submit form 10E before this. If you want to know more about relief check my video on relief

Now head to the next tab, that is “Tax Details” 

Step-4 [Tax Details]

Under this tab you can provide any tax you have been paid already in the form of TDS, TCS, or Advance tax. The first section is for TDS deducted from Salary. Here you should enter your employer's TAN , Name , Income chargeable under salary and the amount of TDS in respective fields. All this details are available in the Form 16 provided by your employer. 

In the fields below you can fill any kind of other TDS , TCS or Advance tax details, if applicable for you otherwise leave these blank. If you are curious about these find all details in different videos, links are given below:





Once you have done with all of these, lets move the next tab, that is “Tax paid and verification”

Step-5 [Tax paid and verification]

This is the last step of this step by step guide. Under “Tax paid and verification” you will find all your total tax payable vs total tax paid details and the difference will be either in "Amount payable" or in "Refund". Now you have to provide one or more bank account details, such as IFS Code, Bank Name, Account number and you have to select the bank you want to set for refund (if any). You can add multiple bank accounts by simply clicking on the "Add" button.

After entering bank details scroll down and find the "Verification" section. Here enter your name and your father name (if not already entered); Select your capacity, for example if you as an individual filing your own return then choose "self"; Check your PAN number that is already entered; Enter place & date and you are ready for online or offline verification. If you have your Aadhar number linked with your mobile then choose for "I would like to e-verify...." and proceed by clicking "preview and submit" button, so you can verify using your Aadhar OTP.

If you are not ready for e-verify and prefer to offline verification then just select the last option "I don't want to e-verify...." and proceed by clicking "preview and submit" button. Now you have to print the ITR-V form and post it to CPC Income tax at the Bengaluru address after manually signing the document. You have 120 days from the date of filing to reach this document at CPC Bengaluru. Remember you should only use normal or speed post and not any other service like courier.

Thank you for reading this step by step article. Hope you find it helpful. Join my YouTube channel to support me, and to learn more like this.

[Estimated reading time: 8 minutes, 12 seconds. Contains 1643 words]

02 June 2020

Opportunities after lockdown




Introduction

From the ancient time our earth witnessed of many natural disasters. Many earthquakes, many pandemics already influenced us. Now we again face a lockdown due to the pandemic COVID 19. However we human were always prepared to face such situations, we are again prepare to contribute any amount of struggle it needs to fight against the situation. As we know, there will be an after lockdown world, in which we are just about to step in. Now we are constantly looking for some opportunities out of this diverse situation to make a better economy & a better future. In this article you will find 5 opportunities, which you should looking for. 

Investment opportunity

If you have an eye on stock market, then you are already know that the market is significantly down. But can you believe, that the market will always remain in this position? Think how many incidence we survived in past, did those incidence stop our economy from growing? Currently prices of financial securities are down, because people are scared. But after the lock down, when businesses will be started again, the positive market sentiment will be back. Those stocks which are undervalued today, will again priced by their real value. It could be rapidly or slowly, so it is very hard to time the market, but you can start investment with a long-term view. Investing into direct equity market need skills and knowledge. If you don't have that skills, you can also go for mutual funds. Taking help of a financial advisor is recommended before any kind of investment.

Freelancing opportunity

India is the biggest freelancing market with more than 50% market share and even growing more. If you think from an employer's side, then you will realise that due to the lockdown, many businesses suffered losses and  many of them will try to reduce the cost by reducing the number of employees. Hence, there will be an increased demand of freelancing services. You can start freelancing by yourself or by making a team of freelancers along with your friends. Remember, if you want to do this with a large scale, you will need a team, because a big project need more manpower.

Job listing website opportunity

Now if you think from employees' side, you will realise that the volume of job searching will significantly rise after lockdown. Those who lost their job, will search for a new job, and those who have their job, will search for a job change if they feel insecurity with their current job. You can help them by creating a job listing site. Remember, the jobs should be genuine, Which you can easily get from the official career page of organisations. Definitely you need to browse a huge amount of them. But when you accumulate those opportunities in a single site, this will not only create an opportunity for yourself but also help the society.

Opportunity in education industry

After lock down all students even employees will need to update their skills to match the increased competition. There for the demand of educational industry will be rise. If you have skills in mathematical, analytical or digital marketing, then you can start to create your courses for selling by online educational sites like udemy, unacademy etc... You can also create and publish your online video tutorial on video sharing platforms like youtube.

Bonus

Less physical interaction will promote digital media. The digital media needs digital assets like, photo, vectors, designs etc... Now if you like to take photo or draw vectors or designs, then you can sell those by becoming a Shutterstock Contributor—it's a great way to get money, experience, and more work for your portfolio. You can just upload your creation with relevant Title & Tags. 

How to become a contributor? Oh come on  just click here and get started.

Estimated reading time:
 3 minutes, 9 seconds. Contains 632 words

30 March 2020

COVID19 impact on statutory compliance of India | Highlights of the announcement on Direct and indirect tax made by FM Nirmala Sitharaman




COVID19 impact on statutory compliance of India


Due to the pandemic COVID-19, the whole nation is facing major economic impacts. During the lockdown phase, the situation became even more serious. Although the lockdown is very essential to control the virus from spreading very rapidly.

On 23 March 2020, our Finance Minister, Smt. Nirmala Sitharaman announce some benefits in statutory and regulatory compliance to offer some sort of relief to the taxpayers after considering the present situation due to the pandemic.

Special tax benefit for CoronavirusThe following announcements she made on direct and indirect taxation:


Direct Tax

  • The due date for income tax returns for the financial year 2018-19, extended to 30 June 2020 (from 31 March 2020). 
  • Interest rate reduced to 9% (from 12%) for any delayed payments of income tax made till 30 June 2020
  • Interest rate reduced to 9% (from 18%), for any delayed deposit of TDS made till 30 June 2020
  • The last date for Aadhaar & Pan linking extended to 30 June 2020 (from 31 March 2020)
  • Waiver for the additional 10% tax for the "Vivad se Vishwas" scheme. Due date is extended till 30 June 2020 for this scheme also.
  • Any kind of compliances under the Income Tax Act, Wealth Tax Act, Benami Transaction Act, Black Money Act, "Vivad se Vishwas" scheme, also extended till 30 June 2020.

Indirect tax (GST)

  • GST returns (including composition scheme) for the month of March, April & May, are extended till 30 June 2020. (Although the exact date of filing may vary to reduce the pressure on the system)
  • Companies having a turnover of less than 5 cr. may enjoy waiver of late fee, penalty & interest till 30 June 2020. The same will be applicable for other companies also, except for an interest at a reduced rate of 9%. (from 18%).

Indirect tax (Custom duty)

  • No interest shall be levied on the "Sabka Vishwas" scheme, irrespective of the amount of dispute. The due date is also extended under this scheme till 30 June 2020.
  • Custom clearance will work for 24×7 till 30 June 2020.

[Estimated reading time: 1 minute, 36 seconds.]
[Contains 322 words]

29 March 2020

Which ITR form Is applicable for me


  

Which ITR form Is applicable for me

Welcome viewers to my another article on Income tax in India. In our country, There are seven returns are currently available. Now the question is, Which ITR should you choose out of them. In this article, you should find all the seven Income tax returns and their applicability, to choose the right one applicable for your case.
Choose the right Income Tax Return
Right income tax return is important

This article is also available is sway click here to open in sway or continue reading...

ITR1

ITR1 is also known as "Sahaj" return. It is the most simple ITR out of the seven. ITR1 is the only return that can be filed directly on the Online portal of income tax. You can fill ITR1, 
  • If you are a resident individual of India
  • Your source of income includes Income from salary/pension 
  • Income from house property (Limited to one) and 
  • Income from other sources (Except winning from horse race and lotteries).
You should not file ITR1 
  • If you have income from any other sources
  • If your total annual income exceeds Rs.50,00,000.
  • If you are an NRI or Resident but not ordinarily resident.
  • If you are not an individual
  • If you are a resident having assets in other countries.
  • If you are a director of a company.
  • If you have agricultural income up to Rs.5000

ITR2

In terms of complexity ITR two is a little bit more complex than ITR1, as it has more scope for Taxpayers. It can be filed by both resident and non-resident of India. You should go for ITR2 if your source of income includes all of the incomes are mentioned in ITR1 plus
  • If you have more than one house property income
  • If you have any kind of income from other sources including winnings from horseraces and lotteries
  • If you have income from capital gains
  • If you have a total annual income of more than Rs.50,00,000.
  • If you have agricultural income more than Rs.5000
  • If you are a director of a company
You should not file ITR2
  • If you have income from business or profession
  • If you are not an individual or HUF

ITR3

This is the most complex form of ITR, an individual may fill. ITR3 includes all the sources of income. You should file ITR3 if your source of income includes all of the incomes are mentioned in ITR1 plus
  • If you have income from business or profession
You should not file ITR3
  • If you are a company
  • If you are any other person than an individual or HUF (like Farms, Association of persons, Artificial judicial person, Body of individual, etc.)

ITR4

ITR4 is also known as "Sugam" return. This ITR is for those persons, who opted for the presumptive income scheme. The scheme Offers exemption to the small businesses, from maintaining regular books of accounts under section 44AA. They are also free from audit under section 44AB. You should file ITR4 if you are a resident individual, HUF or partnership firm other than LLP
  • Having total income does not exceed Rs.50,00,000
  • Having income from business profession under section 44AD, 44AE or ADA
  • Having Income from other sources not including winning from horseraces or lotteries.
  •  Having a single house property income
  • Having agricultural income up to Rs.5000
You should not file ITR4
  • If you have a business which is liable to maintaining regular book of accounts under section 44AA and to maintain audit under section 44AB
  • If you are a limited liability partnership firm
  • If you are a company
  • If your total income exceeds Rs.50,00,000

ITR5

This ITR is for those persons, who are falling in a category other than an individual or HUF. You should file ITR5
You should not file ITR5
  • If you are a company
  • If you are an individual or HUF

ITR6

This ITR is for companies, not claiming exemption under section 11. Under section 11, a company can claim exemptions for income from property held for charitable or religious purposes. ITR6 cannot be filed manually. It is the only ITR, for which the e-filing is mandatory. You should have a CIN issued by the Ministry of Company Affairs, to file this online. You should file ITR6
  • If you are a company not claiming exemption under section 11
You should not file ITR6
  • If you are not a company
  • If you are a company claiming exemption under section 11

ITR7

This ITR is applicable for any person including companies Who are liable to file the return under section 139 (4A), 139 (4B), 139 (4C), 139 (4D), 139 (4E) or 139 (4F). You can file ITR7
  • If you earn from a charitable or religious trust under section 139 (4A)
  • If you earn from a political party under section 139 (4B)
  • If you are from a scientific research institution under section 139 (4C)
  • If you earn from University, College or Institutions under section 139 (4D)
  • If you are filing the return as a business trust under section 139 (4E)
  • If you are filing the return as an investment fund under section 139 (4F)
You should not file ITR7
  • If you are not claiming exemption under section 139 (4A), 139 (4B), 139 (4C), 139 (4D), 139 (4E) or 139 (4F).
[818 Words]
[Estimated reading time: 4 Min 5 Sec.]