e-Payment complete procedure of TDS on Sale of Immovable Property.

What is the procedure for paying the TDS amount into the Bank subsequently, i.e. not immediately after furnishing the purchase transaction details online?
 

Using this facility deductor (Buyer) can furnish the details online and make the payment of taxes subsequently either through net-banking account or by visiting any of the authorized bank branches. Following are the steps to avail this facility:

Step 1

• Log on to NSDL-TIN website (www.tin-nsdl.com).
• Click on the option “Furnish TDS on property”.
• Select Form for Payment of TDS on purchase of Property.

Step 2
After selecting the form you will be directed to the screen for entering certain information.
Example:-

• Permanent Account Number (PAN) of Property Purchaser and Seller.
• Address of the Purchaser, Seller as well as the Property being purchased
• Financial Year during which the Purchase has been made
• Major Head Code - To indicate the type of tax applicable viz; Tax on companies/Tax on other than companies
• Value of Property
• Date of agreement/booking
• Amount Paid/credited (Transaction amount)
• Rate of TDS
• TDS Amount
• Dates of payment/credit, deduction
• Select the option for “Payment of taxes immediately”

It is important to ensure that PAN of Buyer and Seller are correctly mentioned in the form. There is no online mechanism for subsequent rectification. Deductor will have to approach the Assessing Officer or CPC-TDS for rectification of errors.

Step 3

After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.

If PAN is available then TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN entered by you.

Step 4

You can now verify the details entered by you. In case you have made a mistake in data entry, click on "EDIT" to correct the same. If all the detail and name as per ITD is correct, click on "SUBMIT" button. Nine digit alpha numeric ACK no. will be generated and you will be provided with an option to print an Acknowledgment slip.

Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on "Confirm".

Step 5

With the printout of the Acknowledgment slip, you may visit any of the authorized Bank branches to make the payment of TDS subsequently. The Bank will make the payment through its netbanking facility and provide you the Challan counterfoil as acknowledgment for payment of taxes. Based on the information in the Acknowledgment slip, the bank will make the payment only through net-banking facility by visiting tin-nsdl.com and entering the acknowledgement number duly generated by TIN for the statement already filled by the buyer in respect of that transaction.

In case you desire to make the payment through e-tax payment (netbanking account) subsequently, you may access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided an option to submit to the bank wherein you have to select the Bank through which you desire to make the payment. You will be taken to the netbanking login screen wherein you can make the payment online.
 

What do I do if I have misplaced the Acknowledgment slip for payment through the Bank branches?

You may access the access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided options to either Print the Acknowledgment Slip.

In case you desire to make an online payment, on the same screen option for Submit to the bank is provided wherein you have to select the Bank for payment. You will be taken to the netbanking login screen wherein you can make the payment online.

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Four life insurance mistakes you must avoid.

Determining the adequate risk coverage and suitable insurance products is an important aspect of financial planning. The various complexities attached with existing life insurance policies in the market make choosing the right one difficult. Listed below are the most common pitfalls one needs to avoid while buying a life insurance policy.

Miscalculating insurance requirement: Determining the ideal amount of insurance cover needed is one of the most common insurance mistakes. One has to objectively address the question of: "How much Insurance cover do I need?" This can help the individuals in buying exactly what they need. Most of the times we end up being over-insured buying unnecessary insurance products or under-insured by failing to get required risk cover. Ideally, the risk coverage provided by the insurance policy should match the committed expenses of the individual for the years to come. One can also consider including the mandatory goals (retirement, child's marriage, etc.) while calculating the insurance requirements.

Mixing insurance with investments: Considering insurance as an investment is another common mistake. It is a common misconception that insurance is a risk-free investment. One has to note that insurance and investments are two completely different financial entities. We buy insurance as a part of risk coverage which can be used in case of any unexpected eventuality of the earning member of the family. We make investments primarily to achieve our goals and build wealth. When we mix both these important financial entities, we fail to do justice to both. One has to pay higher premiums for the insurance policies which return the premium paid along with an interest after a stipulated time. So, the chances of getting adequate insurance cover paying such higher premiums are minimal. Even the returns one can enjoy on such insurance policies are significantly less than the money invested in a well-diversified portfolio.
 

Insurance is the best way to save tax (primary motive of buying insurance): Insurance for long has been the front runner whenever investments regarding tax savings are considered. People often fail to realize that not all insurance payments are tax free. It is subjected to the upper limit of section 80C, which is caped at Rs. 1 lakh. Essentially, the contributions made towards provident fund and principal repayments of a home loan are also considered under section 80C. One should consider insurance just as a risk mitigating financial instrument, tax saving is just an icing on the cake and not the primary motive of buying insurance. Under the common myth that every premium paid is eligible for tax saving, most of us end up buying unnecessary insurance products.
 

Expecting returns from life insurance: For most of us, the whole perception of insurance changes when it has a prefix of life to it. For example, consider auto insurance. We pay a premium for our auto insurance which covers from the damages done to our vehicle in case of any mishap. We pay the premium every year, we enjoy no-claim bonuses if no claims are made and most importantly at the end of it, we do not receive any money back along with interest. The same fundamentals should be applied for life insurance as well. The main motto of a life insurance policy is to protect the family from the risk of mishap to the bread winner of the family. Our behavioral nature of wanting to get back something from the insurance premiums make us opt for insurance policies which are other than term policies. Term insurance can be availed at much lower cost compared to other hybrid insurance policies.

Source: NDTV.Profit.Com

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Audit Report u/s. 44AB latest amendment.

An assessee required to furnish a report of audit specified under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, clause (b) of sub-section (1) of section 12A, section 44AB, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section 80LA, section 92E or section 115JB of the Act, shall furnish the said report of audit  and the return of Income electronically for AY 2013-14 and onwards [Refer Notification No:42/2013 dated 11/06/2013].

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File TDS on time or be ready to Pay Penalty Rs. 1 lakh

New Delhi: Failure to deposit timely and correct Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) will now attract a penalty ranging from Rs. 200 to Rs. 1,00,000 by the Income Tax department.

All the TDS range offices of the department across the country have been asked by the Central Board of Direct Taxes (CBDT) to ensure compliance in this area and also inform and make aware the authorised deductors about this new action being initiated by the tax department.

According to the new instructions issued, a deductor, either government or private, will have to submit a "compulsory" fine of Rs. 200 for delay in filing either TDS or TCS every day beyond the stipulated date of remittance of these category of taxes.

Similarly, the penalty would be between Rs. 10,000 to Rs. 1,00,000 for furnishing incorrect information or failure to file the collection statement within the due date.

"The assessing officer of the department will use sections 234E and 271H of the I-T Act to ensure that TDS or TCS collections are not delayed or faltered. The department, in many cases, has found that deductors delay for long the filing of these category of taxes even after deducting it from the salary of their employees," a senior official said.

The TDS regime has to be strengthened and hence such measures are important, the official said.

A big chunk of 41 per cent, in the total tax collections in the last fiscal, came from the TDS category alone.
   
During financial year 2012-13, Rs. 2,30,188 crore tax was collected under the TDS category, while the total direct taxes collections stood at Rs. 5,58,970 crore.

The department, during its recent deliberations with top Income Tax and CBDT officials here, has also decided to strengthen its regime for obtaining TDS from salaries of employees in order to collect more revenue under this category.

Source: NDTD Profit.

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Taxpayers may not have to post Income-Tax Returns Paper

NEW DELHI: Millions of taxpayers who file income-tax returns in electronic form may no longer have to post the ITR-V form to Bangalore. The Central Board of Direct Taxes (CBDT), administrative authority of the income-tax department, will now instead introduce electronic verification of these online returns.

The new measure, expected to be operational within this financial year, will save the taxpayer from the hassle of sending the paper document by post and tracking its acknowledgement.

"E-filing was meant to make taxpaying easier for people. But compulsory dispatch of paper documents by post to the Bangalore-based central processing centre of the department or procuring a digital signature was undoing this. Hence, the department has decided to end this soon," a senior official said.

The department has been receiving a number of complaints from taxpayers with regard to following these rules and also was getting suggestions to do away with paper documents and make e-filing more user friendly, he said.

When taxpayers file returns online, they are required to send a ITR V by ordinary post to the I-T department's CPC, based in Bangalore. It then sends an electronic acknowledgement to the tax return filer.

In case of digital signatures (used by corporate entities), a bonafide statement that verifies the identity of the sender, are required to be created by paying a fee and requires regular renewal.

The CBDT, according to the official, has decided to stop the practice as it wants more and more people to file e-returns and it is also bolstered by the huge spurt in e-filing numbers being recorded every year.

During 2012-13, a 31% jump was seen in e-filings by taxpayers as 2.14 crore entities filed returns online as compared to 1. 64 crore in 2011-12.

Recently, the CBDT has made e-filing mandatory for those with an annual income of Rs 5 lakh or more for the financial year 2012-13 and assessment year 2013-14 and with the addition of this category of taxpayers the department expects a huge surge in the number of online filings.

The department also wants to introduce "new concept of third party validation of utilities developed for e-filing which will avoid mistakes in returns and bring uniformity in the interpretation of tax laws in filing of returns".

Source: The Economics Times

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Latest amendment in Form-3CEB,

S.O 1491 (E) In exercise of the powers conferred by sub-sections (1) and (2) of section 92C, section 92D and section 92E read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1). These rules may be called the Income-tax (Sixth Amendment) Rules, 2013.
   (2). They shall be deemed to have come into force with effect from the 1st day of April, 2013.
2. In rule 10A of the Income-tax Rules, 1962 (hereafter referred to as the principal rules), -
   (i) for the figures and letter “10B”, the figures and letters “10AB” shall be substituted;
   (ii) the clause (a) shall be renumbered as clause (ab) and before the clause as so renumbered, the following clauses shall be inserted, namely: -
        ‘(a) “associated enterprise" shall,-
             (i) have the same meaning as assigned to it in section 92A; and
             (ii) in relation to a specified domestic transaction entered into by an assessee, include ---
             (A) the persons referred to in clause (b) of sub-section (2) of section 40A in respect of a transaction referred to in clause (a) of sub-section (2) of the said section;
             (B) other units or undertakings or businesses of such assessee in respect of a transaction referred to in section 80A or, as the case may be, subsection (8) of section 80-IA;
             (C) any other person referred to in sub-section (10) of section 80-IA in respect of a transaction referred to therein;
             (D) other units, undertakings, enterprises or business of such assessee, or other person referred to in sub-section (10) of section 80-IA, as the case may be, in respect of a transaction referred to in section 10AA or the transactions referred to in Chapter VI-A to which the provisions of sub-section (8) or, as the case may be, the provisions of sub-section (10) of section 80-IA are applicable; (aa) “enterprise” shall have the same meaning as assigned to it in clause (iii) of section 92F and shall, for the purposes of a specified domestic transaction, include a unit, or an enterprise, or an undertaking or a business of a person who undertakes such transaction;’.
3. In rule 10AB of the principal rules, after the words “international transaction”, the words “or a specified domestic transaction” shall be inserted.
4. In rule 10B of the principal rules, -
   (i) for the words “an international transaction”, wherever they occur, the words “an international transaction or a specified domestic transaction” shall be substituted;
   (ii) for the words “the international transaction”, wherever they occur, the words “the international transaction or the specified domestic transaction” shall be substituted;
   (iii) for the words “international transactions”, wherever they occur, the words “international transactions or specified domestic transactions” shall be substituted;
   (iv) in sub-rule (1), in clause (d), in the proviso, for the words “type of international transaction”, the words “type of international transaction or specified domestic transaction” shall be substituted.
5. In rule 10C of the principal rules, -
   (i) in sub-rule (1),-
       (a) for the words “particular international transaction”, the words “particular international transaction or specified domestic transaction” shall be substituted;
       (b) after the words “in relation to the international transaction”, the words “or the specified domestic transaction, as the case may be” shall be inserted.
   (ii) in sub-rule (2), for the words “the international transaction”, wherever they occur, the words “the international transaction or the specified domestic transaction” shall be substituted.
6. In rule 10D of the principal rules, -
   (i) for the words “the international transaction”, wherever they occur, the words “the international transaction or the specified domestic transaction” shall be substituted;
   (ii) for the words “an international transaction”, wherever they occur, the words “an international transaction or a specified domestic transaction” shall be substituted;
   (iii) in sub-rule (1),-
         (a) in clause (b), after the words “with whom international transactions”, the words “or specified domestic transactions, as the case may be,” shall be inserted;
         (b) in clause (d), after the words “international transactions”, the words “or specified domestic transactions” shall be inserted;
         (c) in clause (f), after the words “ the international transactions”, the words “or the specified domestic transactions” shall be inserted;
         (d) in clause (g),−
             (I) after the words “comparability with the international transactions”, the words “or the specified domestic transactions” shall be inserted;
             (II) after the words “pricing of the international transactions” occurring at the end, the words “or specified domestic transactions, as the case may be” shall be inserted;
         (e) in clauses (h) and (i),for the words “international transaction”, the words “international transaction or specified domestic transaction” shall respectively be substituted;
   (iv) in sub-rule (2), for the words, brackets and figure “Nothing contained in subrule (1) shall”, the words, brackets and figure “Nothing contained in sub-rule (1), in so far as it relates to an international transaction, shall” shall be substituted;
   (v) in sub-rule (3), in clause (e), after the words “international transactions”, the words “or the specified domestic transactions, as the case may be” shall be inserted;
   (vi) in sub-rule(4), in the proviso, after the words “terms of the international transaction”, the words “or the specified domestic transaction, as the case may be” shall be inserted.
7. In rule 10E of the principal rules, after the words “international transaction”, the words “ or a specified domestic transaction” shall be inserted;
8. In Appendix-II of the principal rules, for Form No.3 CEB, the following Form shall be
substituted, namely: -

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New TDS e-Tutorial

TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. It is similar to "pay as you earn" scheme also known as Withholding Tax in many other countries, one of the countries is USA. The concept of TDS envisages the principle of "pay as you earn". It facilitates sharing of responsibility of tax collection between the deductor and the tax administration. It ensures regular inflow of cash resources to the Government. It acts as a powerful instrument to prevent tax evasion as well as expands the tax net.

Who shall deduct tax at source?
Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 40 lakh or Rs. 10 lakh respectively (the limits will be Rs.60 Lakh or Rs. 15 Lakh respectively w.e.f. 01.07.2010) in previous year, he is required to deduct tax at source.

These persons are mainly:

• Principal Officer of a company for TDS purpose including the employer in case of private employment or an employee making payment on behalf of the employer.
• DDO (Drawing & Disbursing Officer), In case of Govt. Office any officer designated as such.
• In the case of "interest on securities" other than payments made by or on behalf of the Central govt. or the State Government, it is the local authority, corporation or company, including the Principal Officer thereof.

Such person is called Deductor while the person from whom the tax is deducted is called Deductee.

Tax must be deducted at the time of payment in cash or cheque or credit to the payee's account whichever is earlier. Credit to payable account or suspense account is also considered to be credit to payee's account and TDS must be made at the time of such credit.

Download New TDS e-Tutorial

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Latest amendment in ITR-6, ITR-7 and all ITRs for Asstt. Year 2013-14

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
NOTIFICATION

New Delhi, the 11th day of June, 2013

Income-tax

S.O.1513(E).─ In exercise of the powers conferred by section 295 of the Incometax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 2013.
   (2) They shall be deemed to have come into force with effect from the 1st day of April, 2013.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 12,─
   (a) in sub-rule (2),-
       (A) after the words, letters and figure “Form No. ITR-6” the words, letters and figure “or Form No. ITR-7” shall be inserted;
       (B) for the proviso, the following proviso shall be substituted, namely:--
           “Provided that where an assessee is required to furnish a report of audit specified under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, clause (b) of sub-section (1) of section 12A, section 44AB, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section 80LA, section 92E or section 115JB of the Act, he shall furnish the same electronically.”;
   (b) in sub-rule (3),-
       (A) in the proviso, for clause (aab), the following clause shall be substituted, namely:-
           “(aab) a person claiming any relief of tax under section 90 or 90A or deduction of tax under section 91 of the Act, other than a person to whom clause (aaa) or clause (ab) is applicable, shall furnish the return for assessment year 2013-14 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);”.
       (B) after the proviso, the following proviso shall be inserted, namely:-
           “Provided further that a person who is required to furnish any report of audit referred to in proviso to sub-rule (2) electronically, other than a person to whom clause (aaa) or clause (ab) of the first proviso is applicable, shall furnish the return, in Form as applicable to him, in the manner specified in clause (ii) or clause (iii).”.

3. In the said rules, in Appendix-II, for “Forms ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7”, the “Forms ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7” shall be substituted.

[Notification No. 42/2013/ F.No.142/5/2013-TPL]
(Gaurav Kanaujia)
Director to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax (Sixth Amendment) Rules, 2013 vide notification S.O. No. 1491(E) dated 10th June, 2013.

Excel Utility to Upload Income Tax Return Online/Offline.
ITR-1 (SAHAJ) (Indian Individual)
Download ITR-1 for Asstt. Year 2013-14

ITR-2 (For Individuals and HUFs not having Income from Business or Profession)
Download ITR-2 for Asstt. Year 2013-14

ITR-3 (For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship)
Download ITR-3 for Asstt. Year 2013-14

ITR-4 (For individuals and HUFs having income from a proprietory business or profession)
Download ITR-4 for Asstt. Year 2013-14

ITR-4S (SUGAM) (Presumptive Business Income tax Return)
Download ITR-4S for Asstt. Year 2013-14

PDF Format ITR Forms
ITR-5 (For firms, BOIs and AOPs)
Download ITR-5 for Asstt. Year 2013-14

ITR-6 (For Companies other than companies claiming exemption under section 11.)
Download ITR-6 for Asstt. Year 2013-14

ITR-7 (This Form can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).)
Download ITR-7 for the Asstt. Year 2013-14

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