As a leading provider of tax and compliance services in Bangalore, we specialize in offering comprehensive AIR filing services tailored to the specific needs of our clients. Our team of experienced tax professionals possesses in-depth knowledge and expertise in AIR filing requirements, enabling us to deliver accurate and timely solutions to our clients.

Whether you're a business entity or an individual taxpayer, our AIR filing services are designed to simplify the compliance process and minimize the burden on you. From gathering relevant transaction data to preparing and filing AIR forms with the tax authorities, we handle every aspect of the process with meticulous attention to detail and adherence to regulatory standards.

1. Comprehensive Transaction Analysis: We conduct a thorough analysis of your financial transactions to identify reportable transactions subject to AIR filing requirements.

2. Data Collection and Compilation: Our team gathers and compiles all necessary transaction data and relevant information required for AIR filing, ensuring completeness and accuracy.

3. Form Preparation and Filing: We prepare AIR forms as per the prescribed format and guidelines provided by the Income Tax Department and file them electronically on your behalf within the specified deadlines.

4. Compliance Monitoring and Advisory: We provide ongoing monitoring of AIR filing requirements and offer proactive advisory services to help you stay compliant with changing regulations and thresholds.

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Meaning of "buyer" under Section 206C(1F)

"Buyer" with respect to—

1. section 206C(1) means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,—

   1. a public sector company, the Central Government, a State Government, and an embassy, a High Commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or

   2. a buyer in the retail sale of such goods purchased by him for personal consumption;

2. “sub-section (1F) means a person who obtains in any sale, goods of the nature specified in the said sub-section, but does not include,—

   1. the Central Government, a State Government and an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or

   2. a local authority as defined in Explanation to clause (20) of section 10; or

   3. a public sector company which is engaged in the business of carrying passengers.”

Background of Challan ITNS 281

In 2004, the manual process of collection of taxes was replaced by Online Tax Accounting System (OLTAS). It was introduced with an intention to minimize human intervention, thereby reducing errors and facilitating online transmission of details of tax collected, deposited, refunded etc. OLTAS issues a single copy of a Challan and enables taxpayers to track the status of their challans or e-challan deposited in banks online.

There are three types of Challans that are issued:

• Challan ITNS 280 – issued for depositing income tax (includes self-assessment tax, advance tax, tax on regular assessment)
• Challan ITNS 281 – issued for depositing Tax Deducted at Source (TDS) and Tax Collected at Source (TCS)
• Challan ITNS 282 – issued for depositing gift tax, wealth tax, Securities Transaction Tax (STT) and other direct taxes.

Compliance for Challan ITNS 281

Challan ITNS 281 is issued, when the taxpayer deposits TDS and TCS. Therefore, it has to comply with the timelines laid out for deducting and depositing tax.

Due dates for payment of TDS

• TDS deducted on payments (excluding the purchase of property): 7th of the subsequent month.
• TDS deducted on the purchase of property: 30th of the subsequent month.
• TDS deducted in the month of March: 30th April.

In case of delay in deposit of tax, an interest is levied at the rate of 1.5% per month or part of the month from the date of deduction.

Process of Filing Challan ITNS 281

There are two processes for filing Challan ITNS 281:

• Online process
• Offline process

Online Process

Go to the tin-nsdl website and select Challan No./ ITNS 281. At the time of payment of taxes the following details have to be filled in Challan ITNS 281.

• Select the Deductees: Select the appropriate deductee i.e. on whose behalf the payment has been deducted. There are two options:
  • 0020: Company deductees
  • 0021: Non-company deductees
• Assessment Year (AY): The relevant AY for which the payment is being made. As an example, If the payment is made on 30th June 2017 (i.e. relating to FY 2017-18), the relevant AY will be 2018-19
• Tax Deduction Account Number (TAN): TAN is 10-digit alphanumeric number issued to the persons who are required to deduct or collect tax.
• Type of Payment:
  • 200: should be selected if the TDS/ TCS is a regular transaction
  • 400: should be selected if the payment is being made for a demand raised by the income tax authorities.
• Nature of Payment: The section under which TDS/TCS has been deducted has to be selected from the drop-down list.
• Details of Payment: Enter the income tax, surcharge and late filing fees (if applicable). also needs to be entered along with the date and bank branch.

Post-filling in all the details, click on submit to bank and you will be redirected to your bank’s portal to process the payment. Once the transaction is successfully processed, a challan counterfoil shall be displayed containing the CIN No., payment details, and bank name through which e-payment has been made.

Offline Process

For the offline process, the taxpayer can make the payment by personally visiting the bank and submitting a challan. A note has to be taken that the payment can be made via cheque or cash. On submission of the challan, bank will issue a counterfoil receipt back-stamped as a proof of submission.

Process to Check the status of Challan ITNS 281

• For the taxpayers to check the status of the Challan online, you can go to the tin-nsdl portal. There are two modes to view the status:
  • CIN based view
  • TAN based view
• To view the status through the CIN based mode, enter the following details from your challan:
  • BSR code
  • Challan date
  • Challan serial number
  • Amount
• To views the status through the TAN based mode, enter the following details from your challan:
  • TAN
  • Challan date

1. Quoted Shares and Securities: average of lowest and Highest price on valuation date on a recognizes stock exchange.

Note: If no trading of such shares and security on valuation date then average of lowest and highest price of immediately preceding the valuation date when such shares and security traded in recognize stock exchange

2: Unquoted Equity Shares:

A+B-L  X PV
PE

Notes:

A = Book value of all assets (Other than covered in B) exclude TDS, advance tax in excess of income tax refund claimed and deferred expenditure shown in the asset side

B= FMV of bullion, jewellery, precious stone, artistic work, shares, securities and immovable property as determined in the manner provided in this rule

L= Book value of liabilities, but not including the following amounts, namely:-

(i) The paid- up capital in respect of equity shares.

(ii) The amount set apart for payment of dividends on preference shares and equity shares.

(iii) Reserves and surplus, by whatever name called, even if the resulting figure is negative, other than those set apart towards depreciation.

(iv)Any amount representing provision for taxation, other than amount of income tax paid, if any less than the amount of income tax claimed as refund, if any to the extent of the excess over the tax payable.

(v)Any amount representing provisions made for unascertained liabilities.

(vi)Any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preferences shares.

PE= Total amount of paid up equity share capital as shown in the balance sheet

PV= The paid up value of such equity shares

3. Unquoted shares or security date on the basis of valuation report of merchant banker or an accountant.

4. Immovable Property:

(i) SDV on Valuation date  XXX

(ii) FMV/ NRV on valuation date  XXX

Whichever is higher

5. A business undertaking: (A+B-L)

6. Any other assets: FMV/ NRV on valuation date

Part B- Liabilities

Total liability of the trust or institution shall be the book value of liabilities in the balance sheet on the specified date but not including the following amounts, namely:-

(i) Capital fund or accumulated funds or corpus, by whatever name called.

(ii) Reserves or surpluses or excess of income over expenditure, by whatever name called.

(iii) Any amount representing contingent liability

(iv)Any amount representing provisions made for meeting liabilities, other than ascertained liabilities

(v)Any amount representing provision for taxation, other than amount of TDS/ TCS or as advance tax payment as reduced by the amount of income tax claimed as refund under the act, to the extent of the excess over the income tax payable

For the purposes of section 115TD(1), a trust or an institution shall be deemed to have been converted into any form not eligible for registration under section 12AA in a previous year, if,—

1. the registration granted to it under section 12AA has been cancelled; or

2. it has adopted or undertaken modification of its objects which do not conform to the conditions of registration and it,—

   1. has not applied for fresh registration under section 12AA in the said previous year; or

   2. has filed application for fresh registration under section 12AA but the said application has been rejected.

The principal officer or the trustee of the trust or the institution, as the case may be, and the trust or the institution shall also be liable to pay the tax on accreted income to the credit of the Central Government within 14 days from,—

1. the date on which,—

   1. the period for filing appeal under section 253 against the order cancelling the registration expires and no appeal has been filed by the trust or the institution; or

   2. the order in any appeal, confirming the cancellation of the registration, is received by the trust or institution,

      in a case referred to in clause (i) of section 115TD(3);

2. the end of the previous year in a case referred to in sub-clause (a) of clause (ii) of section 115TD(3) (i.e. the trust has not applied for fresh registration under section 12AA in the said previous year);

3. the date on which,—

   1. the period for filing appeal under section 253 against the order rejecting the application expires and no appeal has been filed by the trust or the institution; or

   2. the order in any appeal, confirming the cancellation of the application, is received by the trust or institution,

      in a case referred to in sub-clause (b) of clause (ii) of section 115TD(3);

4. the date of merger in a case referred to in clause (b) of section 115TD(1);

5. the date on which the period of 12 months referred to in clause (c) of section 115TD(1) expires.

1. Income Tax paid or payable if any calculated as per normal provisions of income tax act.
2. Transfer made to any reserve
3. Dividend proposed or paid
4. Provision for loss of subsidiary companies
5. Depreciation including depreciation on account of revaluation of assets
6. Amount/provision of deferred tax
7. Provision for unascertained liabilities e.g. provision for bad debts
8. Amount of expense relating to exempt income under sections 10,11,12 (except sec 10AA and 10(38). This means income under section 10AA & long term capital gain exempt under section 10(38) are subject to MAT provision made for diminution in the value of any asset.