Important Changes in ITR Forms wef AY 2016-17

1.     Where total Income of assessee is more than 50 lacs, the Individual/ HUF  assessee is required to disclose cost of Immovable Assets viz. Land and Building and Movable Assets viz. Cash in Hand, Jewellery Bullion etc., Vehicle, Yatches, Boats and Aircrafts and also Liability in relation to Immovable and Movable assets in case amounts not disclosed in Balance Sheet. Earlier assesses having total Income exceeding 25 lacs were required to disclose this information. In ITR-3 and ITR-4.

More Honeyed taxation of honey introduced w.e.f. 18-03-2016, by making unbranded honey, sale of capital goods, containers for packing of unbranded honey and beeswax used in beekeeping for production of honey tax free. Unbranded Honey was taxable @ 6.05% under entry 48 At present, Branded Honey when sold in retail packing less than 10Kg/10Lt is subject to first point taxation @ 6.88% on first sale and tax free in the hands of subsequent dealers and hence no ITC is available to subsequent buyer. However branded honey when sold in retail packing of 10Kg/10Lt and above is eligible for ITC on subsequent sale. Beeswax before this notification was taxable @ 6.05% under Entry 4 of Industrial Inputs. Bees wax is the wax secreted by bees to make honeycombs and used to make wood polishes and candles. However notification displayed on pextax.com only on 02-04-2016.

As per 3rd Proviso to Rule 36 of Punjab Vat Rules if annual tax liability of the dealer exceeded Rs. 2 lacs during previous year, he was required to file monthly Vat 16 during all subsequent years irrespective of the fact his tax liability decreases from Rs. Two lacs. The excise and taxation department vide Notification dated 20-02-2016 but displayed on website on 02-04-2016, has removed this requirement by omitting third proviso to Rule 36. This shall provide the assesses much desired relief from unnecessary filing of monthly returns and is a step in right direction. Hence the monthly filing of return is required only if annual tax liability of previous year exceeded Rs. 2 lacs and not in subsequent year

Analysis of Changes in Taxation of Yarn and Building Material in Punjab Vat Law effective from Ist April 2016.

Taxation of yarn and building material has been changed  by Excise and Taxation department by introducing Notifiations dated 31-03-2016 wef 01-04-2016.  In this write up an attempt has been made to analyse the law with this  advent of Excise and Taxation department.