Is mandatory fee for late filing of returns applicable from this assessment year, i.e., 2017-18?
– Nitin Bhasin
Section 234F is a new provision introduced by the Finance Act, 2017 which states that fees shall have to be paid mandatorily for late filing of income-tax returns. However, this section will come into effect from Assessment Year (AY) starting on or after April 1, 2018. As such, it will be applicable from AY 2018-19 and not from AY 2017-18. However, penalty for failure to furnish return of income under section 271F up to Rs 5,000 may be levied in respect of assessment year 2017-18 if return is filed after the end of the relevant assessment year.
I am a small shopkeeper. During FY 2016-17, I had suffered losses in my business. Do I need to file I-T return even if I have no taxable income?
The I-T Act allows a taxpayer to carry forward business loss and adjust it against his business income of future years. However, this benefit is available only if return has been filed on time, i.e., on or before the due date. Thus, it is advisable that you file your return of income before the due date even though you do not have any income chargeable to tax. This will help you in carrying forward losses of FY 2016-17 which can be adjusted against the business income of subsequent years.
I was recently transferred from an Indian company to its US sister concern. I left India on April 1, 2016 in connection with my US employment. My employer paid salary in India. I have paid taxes on salary income in USA.
Do I need to pay tax on such income in India also?
— Sagar Rastogi
Your tax residential status in India would be non-resident for the financial year 2016-17 as number of days of stay in India is less than 182 days in the financial year 2016-17. In case of a non-resident, salary income is taxable in India only if services are rendered in India. As in your case, services were rendered by you in USA and taxed in the USA. Applying the Article 16(1) of Indo-USA DTAA, since employment was exercised in USA, it will not be taxable in India irrespective of the fact that the salary was paid by an Indian company in India.
The writer is founder of RSM Astute Consulting Group. Send your queries to email@example.com