Saturday , 21 July 2018

Some corrections in online filing of returns

Last time I had said “try it online” to make life easy. But even before I posted the article to the newspaper I found a mail from a reader that said, “now since GST is implemented I want to register myself for GST registration. The online procedure is little cumbersome and difficult to understand. Is there a procedure offline, say through submission of physical forms and documents?”

My answer would be, to do it online. It may cumbersome and difficult to understand to start with. In any case one will have to do the necessary form filling and pay the GST online in the long run. So make a beginning. You will thank yourself for it.

Just a few days before that I had met a small manufacturer from Faridabad, who had told me of the rather strange happenings as June gave way to July.  It was a holy tradition among them to pay a certain fixed amount to the excise officers along with the monthly excise payments. The arrangement worked smoothly without any hitch. The excise officers never bothered them. But come July this manufacturer and the rest began to receive courtesy calls from the excise officers. Yes sweet courtesy calls, as from long lost friends. What had happened? The GST had severed that holy link that existed between the manufacturers and the excise officers. The manufacturers no longer needed the ‘pujaris’ to take their ‘naivedya’ to the God! They did it online. Why do you need one?

Let me now move on to some corrections in the information I gave earlier with respect to chapter 6A deductions and the TDS on bank interest; I am extremely thankful to the readers who have brought the errors to my notice. Please continue to point out the mistakes as and when you see them, as that is in the interest of the readers.

Section – 80CCB: Deduction in respect of investment made under Equity Linked Savings Scheme (ELSS). The section quoted is wrong; deduction in respect of investment made under Equity Linked Savings Scheme (ELSS) is now covered by section 80C and the limit is the aggregate limit set by section 80CCE, which is Rs 1.5 lakhs.

Section – 80CCC : Deduction in respect of contribution to certain pension funds. This section does not cover contributions to NPS (National Pension System). These are covered by three different sections.  Employee’s own contribution up to 10 per cent of salary is eligible for tax deduction u/s 80CCD(1), within the overall ceiling of Rs. 1.50 lakhs u/s  80CCE. Employer’s contribution up to 10 per cent of the salary is deductible u/s 80CCD(2). This deduction is available without an upper limit and is over and above the ceiling imposed by section 80CCE. Additional/voluntary contribution by an employee in his/her NPS account subject to maximum of Rs. 50,000 is deductible u/s 80CCD(1B). This deduction is also above the ceiling imposed by section 80CCE.

Section – 80D: Deduction in respect of health insurance premiums. The limit of Rs 15,000 is incorrect. The correct limit is Rs 25,000/Rs 30,000. Section 80D covers not only health insurance premiums but also medical expenditure. The full coverage is as below :

Health insurance premiums for assessee or family (spouse and children) up to Rs. 25,000.

Health insurance premium for parents of the aessese upto Rs 25,000.

Medical expenditure for assessee or family (spouse and children) upto Rs 30,000

+ (c) or (b) + (d) cannot exceed Rs. 30,000.

Your bank must have deducted tax from your interest at 10 per cent if it has exceeded Rs 10,000. Please keep correcting me when I go wrong. It helps everyone.


*The author is an investment consultant. Readers can send their comments and queries to


Please like & share: