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Income Tax Portal Levying Late Fee For ITR Filing: Is It Valid?

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Planning

oi-Roshni Agarwal

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In a usual case for filing ITR for the previous financial year i.e. currently FY 2021, Assessment year (2021-2022), the income tax return has to be mandatorily filed by July 31 or the due date for most cases/individuals barring few is July 31. Nonetheless, the CBDT taking into account the disruption caused due to the coronavirus pandemic has allowed various relaxations and hence the ITR filing can also be made by an extended date of up to September 30, 2021.

Income Tax Portal Levying Late Fee For ITR Filing: Is It Valid?

Income Tax Portal Levying Late Fee For ITR Filing: Is It Valid?

Nonetheless, the income tax portal is charging late fee despite the relaxation in income tax filing due date.

Is the late fee being charged for filing ITR for FY21 is valid?

It is being observed that despite the relaxation in ITR filing due date and even when the taxpayers have filed their ITR for FY21 in the last few days, the tax portal is charging a late filing fee. Tax-filers are taking the issue on the social media and asking the department to remove the same from the portal.Why is this happening?

Why the income tax portal is charging late fee for ITR filing despite relaxation?

Experts see it to be a technical error whereby the department of income tax has not updated the extended deadline to file ITR for the FY21 in the tax filing system.

What should tax-filers do?

Tax experts suggest to wait and watch till the Central Board of Direct Taxes (CBDT) resolves the issue. This is because as the tax filing of a return is not possible without paying the penalty in lieu of late filing of tax return, which is though not the case here.

Late ITR filing penalty rules in a usual case

–Interest under Section 234A

In a case if you have not filed the ITR by the due date or missed the deadline and when you have to make some outstanding tax payment to the department, and on the unpaid taxes amount you will be charged an interest of 1% per month or part of the month. The interest shall be levied or applicable from the due date that applies in your case till the time you actually file the return.

Illustration Mr. Kumar is running a medical store. The due date for filing the return of income in his case is 31st July. He filed his return of income on 3rd December. Tax liability of Mr. Kumar for the year is Rs. 28,400 (which is paid on 3rd December). Advance tax paid by him is Rs. 15,000 and he has TDS credit of Rs. 5,000.
Will he be liable to pay interest under section 234A, if yes then how much? Mr. Kumar has filed his return of income after the due date i.e. after 31st July and hence, he will be liable to pay interest under section 234A. Interest will be levied at 1% per month or part of the month. The due date of filing the return of income is 31st July and the return of income is filed on 3rd December and hence, there is a delay of 4 months and 3 days. Part of the month i.e. 3 days will be considered as full month and hence, interest will be charged for a period of 5 months. Interest will be levied at 1% per month on Rs. 8,400 (*) for 5 months. Thus, interest under section 234A will come to Rs. 420.

(*) Advance tax of Rs. 15,000 and TDS of Rs. 5,000 are to be deducted from the tax liability of Rs. 28,400, hence, net liability after deducting advance tax and TDS will come to Rs. 8,400. Thus, interest will be levied on Rs. 8,400.

Note the illustration is taken from Income tax web site.

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Need to devise better formula for setting States’ borrowings, says SBI report

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There is a need to devise a better formula for setting States’ borrowings and delink it from advance Gross State Domestic Product estimates, stated the State Bank of India’s economic research report, “Ecowrap”.

Referring to the Finance Commission’s (FC) recommendation that borrowings by States should be linked to the size of the GSDP, SBI’s economic research department observed that given the borrowings incentivisation, it also resulted in States projecting ambitious GSDP numbers during the budget presentations that are only revised downwards later.

“As a logical corollary, States get access to higher advance borrowing based on their higher GSDP Budget Estimate (BE) projections,” it said.

“Certain States including West Bengal, Maharashtra, Andhra Pradesh, Chhattisgarh, Uttar Pradesh, Tamil Nadu and Rajasthan have borrowed higher than 3 per cent of their actual GSDP in either or all the years ending FY21,” said Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI.

He underscored that even if the additional borrowing conditions set by the FC are considered for the years, the trend is only getting broad-based.

Recommendations

The report recommended that States that are better-behaved may be rewarded in terms of an increase in size of the permissible borrowing in the subsequent year where permissible borrowing is scaled up by the lower advance borrowings.

“This scale-up can also come at a rate lower than market rate of interest,” Ghosh said.

The report suggested that a similar scheme could be envisaged for States that are borrowing more, with a scale-down in the permissible borrowing or the higher advance borrowings may be resorted to only at a rate that is higher than market rate of interest.

Another possible solution could be linking of the State borrowing to its own tax revenue. Such conditional limit on State borrowings finds echo in 15th Finance Commission recommendations also, the report said.

According to Ecowrap, in FY22, based on the 15th Finance Commission’s recommendation, the Centre had allowed States net market borrowing of up to 4 per cent of GSDP, additional 0.5 per cent of GDP conditional borrowing on fulfilment of power sector reforms.

Besides, the total amount of grants given to local bodies has increased. Of the ₹2.2 lakh crore grants permitted for FY22, ₹1.54 lakh crore is unconditional and the remaining ₹67,105 crore for local bodies is conditional and based on reform of urban local bodies, the report said.

Devolution to States

As per Ecowrap, the fiscal situation as of now looks promising even with the added expenditure that the Government has recently announced. It is only the disinvestment figures which could be undershot, it added.

Referring to the Centre’s net tax collections at ₹5.58 lakh crore for Q1FY22, the report said the Q1FY22 tax collections are 36 per cent of the budgeted tax collections. This figure used to be around 26-29 per cent in the previous years.

The Centre has budgeted ₹6.66 lakh crore as the States’ share in the tax collections.

With improvement in direct tax collections, it is expected that Centre will be able to provide this amount to States, thereby, helping them manage their finances better, the report said.

In the last fiscal, the Centre had budgeted ₹7.84 lakh crore, while it could only provide ₹5.5 lakh crore to them, it added.

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PNB eyes ₹4,000-6,000 cr net profit in FY’21-22: CEO

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Punjab National Bank (PNB) expects its net profit for the current fiscal to be around ₹ 4,000-6,000 crore, S.S.Mallikarjuna Rao, Managing Director & CEO, said on Tuesday. This guidance is significant as the bank had closed fiscal 2020-21 with a net profit of ₹ 2,022 crore.

Rao said that he expects over 50 per cent of this guided net profit for 2021-22 to be contributed by write-back of provisions made on NPAs (bank has over 80 per cent provision coverage ratio).

The bottomline will also be bolstered by cost optimisation and branch rationalisation exercise the bank will continue to undertake this fiscal. PNB, which had rationalised (merged) over 380 branches in Q1, is looking to rationalise about 1000 branches by March end this fiscal and go in for setting up new smaller sized branches that are more digitally driven and expand in regions like South and Western India where PNB is not that strong in terms of branch distribution and needs to be strengthened, Rao said at a virtual press conference post the declaration of Q1 results of the bank.

This rationalisation is expected to give huge reduction in operational expenditure for PNB and thereby gain synergies out of the three-way amalgamation with United Bank of India and Oriental Bank of Commerce that comes into force from April 1 next year, he said.

75% hike in profit

PNB on Monday evening reported a 75 per cent increase in standalone net profit for the first quarter ended June 30 at ₹1,023.46 crore as against net profit of ₹586.33 crore in the March quarter. On a year-on-year basis, net profit grew 232 per cent when compared to net profit of ₹ 308.45 crore net profit recorded in the June quarter last year.

Going forward, Rao said that PNB expects to make cash recovery of ₹5,000 crore from NCLT itself this fiscal and reduce debt of ₹12,000 crore. “Apart from that, we get normal recovery ₹ 3,000 crore every quarter as normal recovery. So I am expecting cash recovery of ₹14,000 crore and much higher debt reduction of ₹ 20,000- 22,000 crore”, he said.

Also read: PNB Q1 net up 75% sequentially to ₹1,023 crore

For the quarter under review, PNB made recoveries of about ₹8,000 crore including realisation of ₹1,000 crore from the grounded Kingfisher Airlines.

Rao said that he expects credit growth to pick up from second quarter. The credit growth is expected to improve in the next three quarters compared to what has been so far this year and the bank expects overall credit growth to be 8-10 per cent this fiscal. PNB is looking to bring down its net NPA below 5 per cent by end March 2022.

Valuation controversy

Asked on the recent valuation controversy on PNB Housing Finance, a company in which PNB holds about 32 per cent stake, Rao said that he would wait for the Securities Appellate Tribunal (SAT) to come out with its order and then on the basis of that order the housing finance lender as well as PNB will look at various options. “This issue is a matter of interpretation of law. This can be put to conclusion decisively only by judiciary, non-judiciary and regulator. We are awaiting judgement of SAT and we are bound to follow the judgement given by SAT. I do not want to presuppose what kind of order will come and we will take a call only after the SAT order comes. We will go by the SAT order both in letter and spirit”, Rao said.

He made it clear that PNB had not asked PNB Housing to reconsider the Carlyle deal, but only asked the housing finance lender to follow the directions specified in SEBI’s letter to PNB Housing. “ It’s not a question of going diametrically opposite of what has been done in the deal. We (PNB) have only told them (PNB Housing) that SEBI’s communication to PNB Housing may be looked into in terms of reconstruction of the entire process. This is now in the domain of SAT and we will wait for the SAT order”, he said.

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5 Mutual Fund SIPs That Have More Than Doubled Investors Wealth In 5 Years

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1. ICICI Prudential Technology Fund-

Direct Plan: IT pack has been the outlier for many years and this is imminent from this ICICI Prudential fund i.e. invested into IT and technology dependent companies. The fund aims to offer capital appreciation to its investors. The fund with an asset size of over Rs. 3494 crore carries an expense ratio of over 1%.

Since its launch in 2013 the fund has provided a return of 26.95%. SIP in the fund can be started for Rs. 100, while for minimum lump sum payment one needs to shell out Rs. 5000.

Top holdings of the fund include Infosys, Tech Mahindra, TCS, HCL, Persistent Systems, IRCTC, Coforge etc.

Interestingly, Rs. 1 lakh investment as lump sum in this fund has trebled in value to Rs. 3.65 lakh in 5 years, while SIP of Rs. 10000, amounting to Rs. 6 lakh in 5 years is valued at Rs. 15.76 lakh.

2. Quant Small Cap-Direct Plan-Growth:

2. Quant Small Cap-Direct Plan-Growth:

This fund is a very high risk high return plan with 3/4th of the fund’s corpus put in small cap stocks. The Rs. 700 crore fund carries an expense ratio of 0.5% lower than the category average

Since its launch the fund has offered a return of over 17% and its benchmark is NIFTY Smallcap 250 TRI. Some of the top holdings of the mutual fund are The India Cements, Indiabulls Real Estate, EID Parry, Fortis, Shree Renuka Sugars, HFCL etc.

SIP in the fund can be started for Rs. 1000. And here as we talk of the returns, in 5-years time the fund’s SIP has yielded a return of 39.96%, fetching Rs. 15.67 lakh on an investment of Rs. 6 lakh ( started as monthly SIP of Rs. 10000 for 5 years). This fund is accorded a 4-Star rating by Morning Star.

3. Tata Digital India Fund - Direct Plan

3. Tata Digital India Fund – Direct Plan

This is again a thematic fund focused on technology. The IT fund from the Tata mutual fund commands a fund size of Rs. 1796.6 crore. The expense ratio of the fund is also lower than the category average at 0.67%. Tata Digital India fund was launched in the year 2015 and since then has offered a return of over 25%.

SIP in the fund can be started for just Rs. 150 and some of the top holdings of the fund include Infosys, TCS, Tech Mahindra, Persistent Systems and HCL among others.

Conclusion

Conclusion

Now as is noteworthy here that technology and small cap funds are the main categories that have generated the best five year returns in last 5-years. Though, IT sector will still see boom going ahead because of the heightened adoption of technology and will be generating multi-bagger returns. Investors who are not highly aggressive should rather avoid small cap funds and instead can go by multi-cap funds. Also, another thing when determining whether you should or not consider these top performing mutual funds can be the consistency in their returns.

GoodReturns.in

Disclaimer:

Disclaimer:

Mutual fund investments are market related and subject to risk. Returns on mutual funds for the last 5-years are provided just for knowledge sake and should not be construed as investment advice.

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Bank of India net declines 15% YoY in Q1FY22 to ₹720 cr

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Bank of India (BoI) reported a 15 per cent year-on-year (YoY) decline in standalone net profit at ₹720 crore in the first quarter ended June 30, 2021, due to a decline in net interest income and a rise in provisions towards bad & doubtful and standard assets.

The public sector bank had reported a standalone net profit of ₹844 crore in the year-ago quarter. However, the net profit in the reporting quarter soared about three times vis-a-vis the fourth quarter’s ₹250 crore.

Net interest income (difference between interest earned and interest expended) declined about 10 per cent YoY to ₹3,144 crore (₹3,481 crore in the year-ago quarter).

Total non-interest income (comprising income from commission, exchange & brokerage, profit from the sale of investments, profit from exchange transactions, recovery in written-off accounts, and other non-interest income) rose 39 per cent YoY to ₹2,377 crore (₹1,707 crore).

Within total non-interest income, profit from exchange transactions jumped 126 per cent YoY to ₹754 crore (₹333 crore) and recovery in written-off accounts soared 477 per cent YoY to ₹173 crore (₹30 crore).

Fresh slippages at ₹3,942 crore during the reporting quarter were lower vis-a-vis ₹7,368 crore in the fourth quarter (Q4) FY21 but substantially higher than year ago quarter’s ₹402 crore.

Provisions towards bad, doubtful, and standard assets together were up 16 per cent YoY at ₹1,771 crore (₹1,526 crore).

Gross non-performing assets (GNPAs) level improved to 13.51 per cent of gross advances as of June-end 2021 against 13.91 per cent as of June-end 2020.

Net NPA level too improved to 3.35 per cent of net advances against 3.58 per cent.

Global deposits were up about 5 per cent YoY to ₹6,23,385 crore. Global advances declined a shade (about 0.18 per cent YoY) to ₹4,14,697 crore.

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Bank of India Q1 net profit falls 15 pc to Rs 720 cr, BFSI News, ET BFSI

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New Delhi: Bank of India on Tuesday reported a 14.7 per cent decline in net profit at Rs 720 crore for the June quarter. The bank had posted a net profit of Rs 843.60 crore in the year-ago period. However, the net profit was up sequentially from Rs 250.19 crore recorded in the three months ended March 2021.

In the first quarter of the current fiscal, the lender’s total income was down at Rs 11,698.13 crore. In the year-ago period, it stood at 11,941.52 crore, according to a regulatory filing.

The bank’s gross Non-Performing Assets (NPAs) fell marginally to 13.51 per cent of the gross advances at the end of June this year from 13.91 per cent in the same period a year ago.

Net NPAs or bad loans were down at 3.35 per cent in the latest June quarter compared to 3.58 per cent in the year-ago period. Provisions for bad loans and contingencies for the quarter under review were raised to Rs 1,709.12 crore. The same was at Rs 1,512.07 crore in the same period a year ago.

On a consolidated basis, the bank’s net profit was at Rs 735.37 crore in the 2021 June quarter. It was down by 13 per cent from Rs 845.78 crore in the year-ago period.

Shares of the bank was marginally up at Rs 74.60 apiece in afternoon trade on BSE.



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Now Get Returns Up To 6.40% On FD With Free Medical Benefits: Here’s How

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Investment

oi-Vipul Das

|

For varying investment goals i.e. short-term goal, mid-term goal as well long-term goal, fixed deposit investments are the most secure option to invest under the debt category. Fixed deposit options come with a range of benefits such as guaranteed returns, additional rates for senior citizens, tax benefits if invested for 5 years, deposit insurance cover provided by DICGC, and so on. But do you know you can get free medical benefits and emergency services along with attractive returns if you open a Health Plus Fixed Deposit Account offered by DCB Bank? To know more about the features and benefits of this deposit account, keep on reading to settle for a conclusion.

Features of DCB Health Plus Fixed Deposit

Features of DCB Health Plus Fixed Deposit

  • This fixed deposit account can be opened by resident individuals.
  • This fixed deposit account can be opened with a minimum amount of Rs 10,000 only for a tenure of 700 days.
  • A resident individual must fall under the age limit of 18 years to a maximum of 70 years (completed, but less than 71 years) to open an account.
  • A primary account holder can open up to 4 DCB Health Plus Fixed Deposits, according to the bank.
  • Other benefits such as partial & premature withdrawal are also allowed under this deposit.
  • Under the ICICI Lombard Group Take Care Insurance Plan, you can get free medical benefits and emergency assistance with this fixed deposit account.
  • You can get consultations from doctors approved by the insurance provider (ICICI Lombard General Insurance Company Ltd.), consultations from doctors appointed by the insurance provider, pharmacy options based on the consultation, and ambulance and other emergency services with this fixed deposit account.

Free medical benefits and emergency services offered with DCB Health Plus Fixed Deposit

Free medical benefits and emergency services offered with DCB Health Plus Fixed Deposit

The following are the free medical benefits and emergency services provided by the ICICI Lombard Group Take Care Insurance Plan, which is available with a DCB Health Plus Fixed Deposit account.

DCB Health Plus Fixed Deposit Amount General Physician / Specialist / Hospital OPD Prescribed Pharmacy Expenses Emergency Service (Ambulance)
Teleconsultation Face-to-Face Appointment
Rs 25 lakh and above 10 10 Rs 3,000 Unlimited
Rs 10 lakh to less than Rs 15 lakh 10 6 Rs 1,500 Unlimited
Rs 5 lakh to less than Rs 10 lakh 10 4 Rs 1,000 Unlimited
Rs 3 lakh to less than Rs 5 lakh 10 2 Rs 500 –
Rs 1 lakh to less than Rs 3 lakh 8 2 – –
Rs 10,000 to less than Rs 1 lakh 4 0 – –
Source: Bank Website

Interest Rates of DCB Health Plus Fixed Deposit

Interest Rates of DCB Health Plus Fixed Deposit

A DCB Health Plus Fixed Deposit account can only be opened up to a tenure of 700 days. With effect from 15 May 2021, below are the most recent interest rates provided by DCB Bank on deposits of less than Rs 2 Cr.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 14 days 4.55% 5.05%
15 days to 45 days 4.55% 5.05%
46 days to 90 days 4.50% 5.00%
91 days to less than 6 months 5.25% 5.75%
6 months to less than 12 months 5.70% 6.20%
12 months to less than 15 months 5.80% 6.30%
15 months to less than 18 months 6.00% 6.50%
18 months to less than 700 days 6.00% 6.50%
700 days 6.40% 6.90%
Source: Bank Website

Points to note

Points to note

  • To open a DCB Health Plus Fixed Deposit account, one needs to submit his or her PAN details.
  • To open a DCB Health Plus Fixed Deposit, you must first register with the bank with your mobile number and email address.
  • The insurance company is responsible for providing health insurance services. The individual can choose whether or not to use the above-discussed features. The bank is not accountable or liable for the insurance provider’s health insurance services, according to the official website of the bank.
  • To use the health insurance services, you must first download the ‘IL Take Care’ mobile app from the default app store of your mobile.
  • Before opening a DCB Health Plus Fixed Deposit account it is recommended to read the applicable terms and conditions and for more information, you can visit https://www.dcbbank.com/dcb-health-plus-fixed-deposit

Story first published: Tuesday, August 3, 2021, 14:27 [IST]



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IndusInd Bank empanelled as agency bank to RBI

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Private sector lender IndusInd Bank has been empanelled by the Reserve Bank of India (RBI) as an ‘Agency Bank’ to facilitate transactions related to government businesses.

It can now be authorised to handle transactions related to government businesses such as income tax, indirect taxes and goods and services tax payments, pension payments, work related to small savings schemes, collection of stamp duty charges, collection of stamp duty from citizens for franking of documents and also collection of State taxes such as professional tax, value-added tax and State excise duties.

“Given IndusInd Bank’s exclusive suite of services comprising innovative and cost-effective solutions, coupled with our state-of-the-art technology platforms, we are confident of being a ‘partner of choice’ for the government, its enterprises, as well as stakeholders in fulfilling their financial aspirations in a seamless manner,” said Soumitra Sen, Head – Consumer Bank, IndusInd Bank.

Also read: IndusInd Bank net profit surges 111.7% in Q1

Finance Minister Nirmala Sitharaman had on February 24 this year announced that the embargo on grant of government business to private banks has been lifted.

The RBI had then notified guidelines for the appointment of scheduled private sector banks as agency banks.

This was seen as a significant benefit for mid and small-sized private sector lenders as earlier only the three large private sector banks apart from public sector banks were permitted to do government business such as deposits, public provident fund and Sukanya Samriddhi accounts, tax payments and pension payments, amongst other initiatives.

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Nykaa files IPO papers with Sebi, BFSI News, ET BFSI

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New Delhi, Aug 3 (PTI) E-commerce beauty company Nykaa has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share-sale. The initial public offering (IPO) comprises fresh issue of equity shares worth Rs 525 crore and an offer for sale of 4,31,11,670 equity shares by the selling shareholders, according to draft red herring prospectus (DRHP).

Those selling shares in the OFS include TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Limited, Lighthouse India III Employee Trust, Yogesh Agencies and Investments and J M Financial and Investment Consultancy Services and Sanjay Nayar Family Trust.

Proceeds of the fresh issue will be used towards investment in certain subsidiaries — FSN Brands or Nykaa Fashion — to set-up new retail store, capital expenditure, repayment of debt, to enhance the visibility and awareness of its brands and general corporate purposes.

Founded in 2012, the company is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.

The company has a diverse portfolio of beauty, personal care and fashion products, including its owned brand products manufactured by it.

Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, JM Financial and ICICI Securities have been appointed as merchant bankers to advise the company on the IPO.

The equity shares of the company will be listed on BSE and NSE. PTI SP ANS ANS



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