Last date for submit Annual Income Tax Return for Asstt. Year 2014-15 - 31st July, 2014 & ITR FAQs.

Q 1. What are the modes of filing return of income?
Return of income can be filed in paper mode or in e-filing mode. If return of income is filed through electronic mode, then the assessee has following two options:
  1. E-filing using a Digital Signature
  2. E-filing without a Digital Signature
If return of income is filed by using a digital signature, then there is no requirement of sending the signed copy, ITR V (i.e., acknowledgement of return filed electronically) to Bangalore CPC. However, if the return is filed without using digital signature, then the assessee shall send the signed copy of ITR V to CPC, Bangalore at the following address. Income Tax Department - CPC, Post Bag No -1, Electronic City Post Office, Bangalore -560100, Karnataka within 120 days of uploading the return either by ordinary post or speed post only.

Q 2. When is it mandatory to file return of income?
It is mandatory for a company and a firm to file its return on income. However, for an individual and HUF, it is mandatory to file return of income if his/its gross total income (before claiming Chapter VI-A deduction) exceeds the maximum exemption limit. The maximum exemption limit and the slab rates for Assessment Year 2014-15 are given in the following table:

Q 3. Is it mandatory to file return of income if I have a PAN?

No, it is not mandatory to file return of income if your income is less than maximum exemption limit, irrespective of the fact that you have been allotted a PAN.

Q 4. I am an Individual and resident of India. Do I need to file return if my income is below taxable limit but I am having an account in a foreign bank?

Yes, it is mandatory for you to file the income-tax return. In view of newly inserted proviso to Section 139(1), it is mandatory to file income-tax return, if following conditions are satisfied:

 (a) The assessee is resident and ordinarily resident in India;

 (b) He has any of following:

  (i) Signing authority in any account located abroad;

 (ii) Any asset located abroad; or

(iii) Financial interest in any entity located abroad.

The assessee is required to provide requisite details of such account, assets or financial interest in the return of income.

Q 5. Which form should I opt for to file my income-tax return for the assessment year 2014-15?




Download ITR-1
Download ITR-2
Download ITR-3
Download ITR-4S
Download ITR-4


Q 6. What are the due dates for filing of income-tax returns for the year ending March 31, 2014?


Q 7. Whether it is mandatory to file return electronically?
E-filing of return is mandatory for:

(a) Every company;

(b) Every AOP or BOI

(c) A person [other than a company and a person required to furnish return in form ITR 7] whose total income exceeds Rs. 5 lakh rupees during the previous year 2013-14;

(d) A firm or an individual or HUF who are required to get their accounts audited under section 44AB;

(e) Every person claiming tax relief under Section 90, 90A or section 91;

(f) A political party [if its income exceeds the limit, without claiming exemptions under Section 13A, which is not chargeable to tax]

(g) Every resident and ordinarily resident individual and HUF, if he/it has any of following:

  (i) Signing authority in any account located abroad;

 (ii) Any asset located abroad; or

(iii) Financial interest in any entity located abroad.

Q 8. When is it mandatory to file return electronically with digital signature?
E-filing of return with digital signature is mandatory for:

(a) Every company;

(b) A firm or an individual or HUF who are required to get their accounts audited under section 44AB;

(c) A Political Party [it its income exceeds the limit, without claiming exemptions under Section 13A, which is not chargeable to tax]

Q 9. How to file return electronically?

Income-tax return can be filed electronically with the help of following instructions:

(a) Visit https://incometaxindiaefiling.gov.in;

(b) Choose the appropriate ITR form suitable for your status and source of income (Refer FAQ No. 5) and download excel utility (available only for ITR 1, 2, 3 and 4s) or java utility from the aforementioned website;

(c) Fill the income-tax return in the excel utility or java utility and generate XML file. Java utility has an option to pre-fill the information on basis of PAN card or previous year's return and submit return directly (without generating XML file) but for that one has to create his account at income-tax e-filing portal;

(d) Use the following link to create your account: https://incometaxindiaefiling.gov.in/e-Filing/ Registration/ RegistrationHome.html;

(e) After creation of account, you need to login and then click on "submit return" option;

(f) Select the 'assessment year' and 'form name', then click 'next';

(g) Click on Browse option to select the generated XML file and upload it;

(h) Java utility gives an option to submit return directly, i.e., without generating XML file. Thus, taxpayers who are required to file return in ITR 4, 5, or 7 or those taxpayers who opt to file ITR 1, 2, 3, or 4S in Java utility shall not follow the instructions given above in point (e), (f) and (g).

 (i) On successful submission of ITR form, a pop-up menu will be displayed on the screen. Click on "Download" button to get the acknowledgement, i.e., ITR-V;

The final step is to get the printout of such acknowledgement, get it signed and send it to "Income Tax Department - CPC, Post Bag No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka" within 120 days of uploading the return either by ordinary post or speed post only.

If ITR-V is not submitted within stipulated period of 120 days, then it will be deemed that assessee has not filed the return of income.

The assessees who are required to file the ITR-1 may alternatively fill and file their return online without downloading the excel or java utility after login at the incometaxindiaefiling.gov.in.

If assessee is using digital signature ("DSC") for uploading the return, it is to be registered on the website beforehand. If return is filed through DSC, assessee would not be required to send the print-out of the acknowledgement to CPC.

Q 10. What if I have forgotten the login details of https://incometaxindiaefiling.gov.in?

(a) Click on forget password or on the following link https://incometaxindiaefiling/gov.in/e-Filing/UserLogin/ LoginHome.html;

(b) Enter your user ID (i.e., your PAN) and the captcha (i.e., the security random code) and click on continue;

(c) In the password reset page, one of the following options can be selected:

  (i) Answer the secret question;

 (ii) Upload the digital signature certificate; or

(iii) Enter e-filed acknowledgement number or bank account number as furnished in return of income.

(d) Enter new password twice and click on 'Reset Password' to generate new password;

(e) If you are unable to retrieve your password, send an email request from registered email-id, to validate@incometaxindia.gov.in with following details:

  (i) PAN:

  (ii) Name of the assessee as appearing on the PAN card;

(iii) Date of Birth/Date of incorporation;

 (iv) Name of father as appearing on the PAN card;

 (v) Registered PAN Address;

New password will be communicated to you by the income-tax department via email.

Q 11. If the last date to file income-tax return is a public holiday, whether the next day would be treated as "last date of filing"?

Normally, income-tax department continues its operation during the last days of filing of income-tax return even if the last days eventually fall on Sundays or on holidays. However, if department is closed on the last due date, then the immediately next working day of the department would be considered as the last date of filing of income-tax return.

Q 12. How can I find my jurisdictional Assessing Officer?

Either click on Services>Know your Jurisdiction given on the home page of incometaxindiaefiling.gov.in or use the following link https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html to know your jurisdictional officer.

Q 13. How to know TAN of my deductor?


It can be found either on the Form 16/16A or in the 26AS tax credit statement available on https://www.tdscpc.gov.in/app/login.xhtml TRACES (TDS Reconciliation and Correction Enabling System) website.

Q 14. How would I know whether my e-return has been processed at CPC Bangalore?
Log on to the e-filing website and select CPC processing status to check the status of return.

Q 15. I am the authorized signatory of the firm. While filing the return of income I get an error that 'PAN mentioned in Verification section is invalid'.
In case of return of income of firm/company/AOP/BOI/Artificial judicial person/Co-operative society/trust, etc., PAN of authorized signatory is required to be filled in verification field instead of the assessee's PAN.

Q 16. I had e-filed my return and had identified some mistake which seems to be a 'mistake apparent from record'. Can I make rectification with CPC in paper form?

No, the CPC doesn't accept any of the manual correspondence. You have to login to incometaxindiaefiling.gov.in and have to file rectification request using web portal.

Q 17. What to do in case of TDS mismatch?

Even if the credit for TDS as claimed in the return matches with the balance as appearing in the Form 26AS, Assessing Officer may raise a demand for payment of differential amount due to TDS mismatch. The reason for such difference could be as under:

(1) TAN of deductor was wrongly mentioned

(2) Name of deductor was not spelt out correctly

(3) Tax deducted by one deductor was wrongly included in the amount of tax deducted by another deductor

In case of such TDS mismatch, an assessee can file a rectification request.

Steps to file the rectification request:

(a) Login to your account in https://incometaxindiaefiling.gov.in

(b) Go to My Account > Rectification request

(c) You need the following to fill in the required details:

  (i) PAN

 (ii) Assessment Year

(iii) Latest Communication Reference Number (it starts with CPC/Assessment Year/)

(iv) Latest CPC Order date
(Request Rectification)
(d) Click on Validate to go to next step

(e) On the next screen, choose 'Taxpayer is correcting data for Tax Credit Mismatch Only' from the drop-down box of 'Rectification Request Type'

(f) Check from the following relevant boxes for which item taxpayer is seeking rectification:

  (i) TDS on salary income details

 (ii) TDS on other than salary income details
   (Submit Information)

(g)  Fill in all the relevant details including details of tax deducted and reported in the return of income filed earlier

(h)  Click on the button 'Submit' to submit the rectification request.

The TDS mismatch may also be due to error in TDS return filed by deductor. In such a situation, you should intimate the deductor about such error and require him to rectify the TDS return.

In press note no. 402/92/2006, dated April 17, 2014 CBDT had noted that many taxpayers commit mistakes while furnishing details of tax credit in the return of income. Such mistakes include:

(a) Invalid/incorrect TAN of deductor;

(b) Furnishing same TAN for more than one deductor;

(c) Filing information in wrong TDS Schedules in the Return Form;

(d) Furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax, etc.

Consequently, the tax credit could not be allowed to the taxpayers while processing returns despite the tax credit being available in Form 26AS statement. The CBDT, therefore, directs the taxpayers to verify if the demand raised on them is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands. The rectification requests have to be submitted to the jurisdictional Assessing Officer in case the return was processed by such officer, or the taxpayer is informed by CPC, Bangalore that such rectification is to be carried out by Jurisdictional Assessing Officer. In all other cases of processing by CPC, Bangalore, an online rectification request can be made (as defined above).

Q 18. I have filed my return electronically and furnished the signed copy of acknowledgment to the CPC. However, I have received a letter from CPC that said copy of acknowledgement had not been received. Since time-limit to resend the acknowledgement already expired, whether it will be deemed that I have not filed the return?

The same issue has been dealt with by Bombay High Court in the case of Crawford Bayley & Co. v. Union of India [2011] 16 taxmann.com 323 (Bom.), wherein the Court, despite expiry of the time-limit to send the acknowledgment, allowed additional time to assessee to resend the same, since the assessee had furnished adequate material before the Court in support of its contention that having filed return electronically, it had also submitted ITR-V Form by ordinary post.

Based on the above, it can be inferred if you have already submitted the ITR-V to the CPC then you can resend the acknowledgement, even though the time-limit for filing ITR-V has already expired, provided you have sufficient evidences to substantiate the fact that you have send the acknowledgment earlier within 120 days of uploading the return either by ordinary post or by speed post only.

Q 19. Can I file the return even if the due date to file the same has expired?

Yes, you can file return of income belatedly within a period of one year from the end of relevant assessment year or before the completion of assessment, whichever is earlier.

Q 20. What are the consequences of filing belated return?

If return is filed after the end of relevant assessment year, in that case penalty of five thousand rupees can be levied under section 271F.

If the return of income is not filed within the due date specified under section 139(1), loss incurred during the year under the heads 'Profits and gains of business and professions' and 'Capital gains' cannot be carried forward to next year.

Q 21. Can I file return of income even if my income is below taxable limits?

Yes, you can file return of income voluntarily even if your income is less than the maximum exemption limit.

Q 22. I have filed my return of income; however, I omitted to claim benefit of Section 80C deduction. What should I do?
The benefit of omitted claim can be availed only by filing a revised return. But in that case you have to ensure that your original return has been filed within the due date as return can be revised only if it has been filed originally within the specified due date (Refer FAQ 6). An income-tax return can be revised within one year from the end of the relevant assessment year or before completion of assessment, whichever is earlier.

Q 23. I am a salaried person. My total taxable salary is Rs. 5,40,000 on which tax has been duly deducted under Sec. 192 amounting to Rs. 39,140. During finalization of return, I found that my bank has given me a credit of Rs. 1,24,500 towards interest. Please guide me what should I do now?
In this situation, you have to pay the balance taxes on the interest income (or any other income) before filing of return. As per revised computation, your total tax liability would be Rs. 64,787. Since tax of Rs. 39,140 has already been deducted under Sec. 192, the balance tax of Rs. 25,647 should be paid along with interest under Section 234B and 234C. The tax and interest can be paid in any authorized bank through Challan No. ITNS 280. Alternatively, it can be paid through online bank portal through following link https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp.

Q 24. What documents are needed to be enclosed along with the return of income?
Income-tax returns are annexure less. Hence, there is no need to enclose any document(s) along with the return of income. Thus, documents like TDS certificate, balance sheet, Profit & Loss A/c, Capital A/c, proof of investments, etc., are not to be attached along with the return of income. However, these documents should be retained and have to be produced before the Assessing Officer whenever he requires us to do so.

Q 25. My employer has deducted tax without allowing me relief of section 89. Can I claim the relief while filing the return of income?

If the employer fails to provide relief under section 89 and deducts excess tax, then you can claim such relief in your return of income and can claim refund of excess tax deducted.

Q 26. How to claim deduction on donation given to an organization registered under section 80G?
Deduction under section 80G can be claimed by filing the return of income in which the following details need to be given:
(a)     Name of donee;
(b)     PAN of donee;
(c)     Address of donee; and
(d)     Amount of donation.

Q 27. How to avoid deduction of tax, if during the year the accrued interest on deposit in my saving account is Rs. 15,000 and my total income including such interest income is below taxable limit?

You can file a self-declaration to the banker in Form 15H (in case of Senior Citizen) or Form 15G (in case of assessees below 60 yrs. of age) stating that your income is below taxable limit.

Q 28. Whether salaried persons are not required to file return of income for assessment year 2014-15?

Exemption from filing return of income isn't available for salaried persons for Assessment Year 2014-15, as exemption from filing of return of income for salaried persons was allowed under Notification No. 9/2012 only in respect of the Assessment Year 2012-13. Similar notification for Assessment Years 2013-14 and 2014-15 has not been issued. Therefore, every assessee earning income of more than basic exemption limit shall file the return of income.

Q 29. Whether all salaried taxpayers can choose ITR-1 for filing income-tax returns?

No, all salaried taxpayers can't choose ITR-1 for filing tax returns from Assessment Year 2013-14 onwards. They can choose ITR-1 only if they are claiming exemption under sec. 10 (e.g. HRA, Conveyance allowance, etc.) up to Rs 5,000 or less. So, if taxpayer is claiming any exemption under sec. 10 which exceeds Rs. 5,000, he cannot file return of income in ITR-1 (As per amended Rule 12 of income-tax rules).

Q 30. I omitted to submit rent receipt and investment proof to my employer because of which relief for HRA and certain other deductions weren't given to me; the tax deducted from my salary income is higher than my actual tax liability. How to claim refund of such excess tax?

Even if the benefit of HRA under Section 10(13A) and deduction under Chapter VI-A are not considered by the employer in Form 16, yet they can be claimed in the income-tax return. Accordingly, the excess tax deducted by employer can be claimed as refund.

Q 31. Can I claim deduction under section 80C of interest on housing loan?

Repayment of principal portion of residential housing loan will be allowed as deduction under section 80C within the overall limit of Rs. 1,00,000. However, such deduction is available if housing loan is borrowed by assessee from:
(a)     Central Government or any State Governments
(b)     Banks, including a co-operative banks
(c)     LIC
(d)     National Housing Bank
(e)     Domestic Public company providing long-term finance for construction or purchase of houses in India
(f)     Assessee's employer, being an authority or a board or a corporation or any other body established or constituted under Central or State Act
(g)     Assessee's employer being, a public company or a public sector company or a university or a university established by law or a college affiliated to such university or a local authority or a co-operative society.

However, interest on housing loan is deductible under section 24(b) while computing income chargeable to tax under the head "Income from house property".

Q 32. How to claim benefit of tax deducted in advance on income which is taxable in subsequent years?

Certain provisions of TDS (including TCS) require deduction of tax at source at the time of payment or at the time of credit, whichever occurs earlier. Advance payments are also subjected to TDS. Old ITR form did not have any mechanism to carry forward the excess TDS, thus, taxpayers were required to show the entire TDS as a deduction and claim refund of excess TDS. To overcome the issues, the Schedule TDS/TCS in the ITR forms introduced two new columns:

(a) Unclaimed TDS/TCS brought forward

  (i) Financial Year in which deducted/collected

 (ii) Amount brought forward

(b) TDS/TCS being claimed this year from amount brought forward or from TDS/TCS of current financial year.

Thus, the portion of TDS credit pertaining to income taxable in the subsequent year can be carried forward to subsequent year and can be claimed in the year in which income is offered to tax.

Q 33. What will be the consequences if return of income is filed without making payment of self-assessment tax?

To discourage the practice of filing of return of income without payment of self-assessment tax, the Finance Act, 2013 has amended Explanation to section 139(9) so as to provide that the return of income shall be deemed as defective return if tax including interest thereon, if any, payable in accordance with the provisions of the Act has not been paid on or before the date of furnishing of the return.

Q 34. Whether is it mandatory to furnish PAN of the landlord to claim exemption in respect of house rent allowance ?

If employee is claiming exemptions for house rent allowance and the annual rent paid by him exceeds Rs. 1,00,000, it is mandatory for him to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

Q 35. Who is required to file audit report electronically?
Following persons are required to get their accounts audited and file the audit report electronically:

(a) A person carrying on business, if his turnover exceeds Rs. 1 crore

(b) A person carrying on profession, if his gross receipt exceeds Rs. 25 lakh

(c) A person eligible to compute taxable income on presumptive basis but does not opt to do it so

(d) Trusts or institutions registered under section 12AA or claiming exemption under section 10(23C)(iv),(v), (vi) or (via) if their total income exceeds the amount not chargeable to tax.

(e) Persons claiming deduction under section 80-IA, 80-IC.

(f) Non-Resident or a foreign company who is in receipt of royalty or fee for technical services in pursuance of an agreement with the Indian government or an Indian concern (subject to conditions specified under section 44DA)

Q 36 Is there any requirement to file audit report electronically with digital signature?

Yes, following persons are required to file their audit report electronically along with digital signature-

(a) Every company

(b) A firm, Individual or HUF who is required to get its accounts audited under section 44AB.

Q 37. Is there any other report which has to be filed electronically?

Following reports have to be filed electronically:

(a) Report of Transfer Pricing under Section 92E

(b) Report on computation on Net worth in case of slump sale under Section 50B

(c) Report on computation of book profit in case of companies liable to pay MAT under Section 115JB

(d) Report certifying the correctness of deductions claimed under section 10A, 10AA, 80-IB, 80-ID, 80JJAA, 80LA

(e) Report on tonnage taxation scheme

Q 38 Is there any restriction on number of returns that can be filed using same email-ID or same mobile number?

Yes, only 10 returns can be filed using same email-id or same mobile number.

Source: www.taxmann.com

Avoide Penalties, Issue TDS Certificate on or before 30th July, 2014 of Q1 for Asstt. Year 2015-16

Now a days all TDS Deductors want to avoide every consequences arising on behalf of this matter from Income Tax Department, therefore issue TDS Certificate on or before 30th July, 2014 of Q1 for Fin. Year 2014-15 and Asstt. Year 2015-16. The Last date to issue a TDS/TCS Certificates for Q1 of Fin. Year 2014-15 is 30th July, 2014.  This last/due date is applicable for all deductors who are other than the office of the Government.

Delay in requesting certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted.

Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):

Default/ Failure
Section
Nature of Demand
Quantum of demand or penalty
Failure to deduct tax at source
201(1)
Tax demand
Equal to tax amount deductible but not deducted

201(1A)
Interest
@1 % p.m. of tax deductible

271C
Penalty
Equal amount of tax deductible but not deducted
Failure to deposit tax at source
201(1)
Tax demand
Equal to tax amount not deposited
201(1A)
Interest
@1.5% p.m. of tax not deducted
276B
Prosecution
Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine
Failure to apply for TAN No. u/s 203A
272BB
Penalty
Rs. 10000
Failure to furnish prescribed statements u/s 200(3)
272A(2)(k)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to issue TDS certificate u/s 203
272(A)(g)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount.
Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C)
272(A)(i)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to mention PAN of the deductee in the TDS statements and certificates
272B
Penalty
Rs. 10000

If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.

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. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.


Please note:
It is now mandatory for all the deductors to issue the TDS certificates after generating and downloading the same from “TRACES”(www.tdscpc.gov.in). Refer to Circular no.3/2011 dated 13-5-2011, Circular No.1/ 2012 dated 9-4-2012 (in respect of 16A)

Download Form-16A from TRACES (Click Here)

PAN Lost, Damages or Correction, How to get New or Reprint Copy of PAN ?

Now in India it is a very common problem and equal truth that missing or lost including Damages or Correction in PAN.  Apart from this we all very well known about importance of PAN Card in our daily life. So, a person really feel anxiety if he/she has lost or has some not the PAN card he/she had. In this matter frequently asked question by many persons is that -
” I have lost my PAN card, how can I apply for the duplicate card ?.
There are two simple solution in this regard that-
  1. By getting reprint of PAN card manually, and
  2. By applying online.
Manual Way to get reprint of PAN Card :
  • Visit nearest office of NSDL or UTITSL office and ask for the application form called “Request for New PAN Card or/and Changes or Correction in PAN data” .
  • Fill it up, pay the Fee of Rs 94 & submit to the office of NSDL or UTITSL.
  • Wait for a month.
Online way to get reprint if PAN card :
Step 1 :
Click NSDL Link for online Reprint Forms . You will get a page where go down to below , you will find a filed for selecting your status i.e whether you want PAN for individual or Firm or other. Like below photo

Once you select your online form , form REPRINT of PAN card will come on screen.

Step 2 :
Most Important to remember here is that since you just want reprint of your lost PAN card , fill all fields in the Form but do not select any box on left margin.

Step 3 :
Pay the fee of Rs 94 by bank transfer or credit card. For person who are abroad, will have to pay Rs 944

Step 4:
On successful payment , an acknowledgement screen will come , which must be printed out. Note down Acknowledge Number for future correspondence.

Step5 :
Affix a a recent colour photograph (3.5 cm x 2.5 cm) , Sign the form and send on following address
National Securities Depository Limited, 3rd floor, Sapphire Chambers, Near Baner Telephone Exchange, Baner, Pune – 411045′.

Step 6:
Do not forget to write on Envelop “‘APPLICATION FOR PAN CHANGE REQUEST-Acknowledgment Number’ (e.g. ’APPLICATION FOR PAN CHANGE REQUEST-881010200000097′).

How to check the status of PAN application ?
  • Check after one month
  • Check your status of application by SMS as under
NSDLPAN Acknowledgement No. & send to 57575

Interest of PPF for Fin. Year 2014-15 is 8.7% P.A.

The Interest rate for Fin. Year 2014-15 is 8.7% which is notified by Central Government for Public Provident Fund.  This is notified rate of Interest on Subscriptions made to the fund on or after 01.04.2014 and balances at the credit of subscriber.  This Interest rate is as for the Fin. Year 2013-14.

SECTION 5 OF THE PUBLIC PROVIDENT FUND ACT, 1968 - INTEREST - NOTIFIED RATE OF INTEREST ON SUBSCRIPTIONS MADE TO THE FUND ON OR AFTER 1-4-2014 AND BALANCES AT THE CREDIT OF SUBSCRIBER

NOTIFICATION NO. GSR 496(E) [F.NO.6-1/2011-NS-II (PT.II)], DATED 11-7-2014

In pursuance of section 5 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby notifies that the subscriptions made to the Fund on or after the 1st day of April, 2014 and the balances at the credit of the subscriber shall bear interest at the rate of 8.7 per cent.

Online Income Tax Calculator for All Taxpayee for Asstt. Year 2015-16 & More.

Finance Minister announced Union Budget-2014 with little changes in Income Tax Exemption regarding Allowances & Perquisites, Deductions u/s. 80C & Others. Income Tax Department has developed Income Tax Calculator for Asstt. Year 2015-16 for all Taxpayee.

To provide relief to small and marginal tax payers, personal income tax exemption limit is being raised from Rs. 2 lakh to Rs. 2.5 lakh. For senior citizens, the exemption limit will be Rs. 3 lakh. Further, the investment limit under Section 80C of the Income-tax Act is being raised from Rs. 1 lakh to Rs. 1.5 lakh. Deduction limit for interest on housing loan (for self-occupied house property) goes up from Rs. 1.5 lakh to Rs. 2 lakh.  These changes is applicable for Fin. Year 2014-15 & Asstt. Year 2015-16.  The Online Income Tax Calculator for Asstt. Year 2015-16 for all Taxpayers is as under :

ONLINE INCOME TAX CALCULATOR FOR ALL TAXPAYEE



Free Download Updated Income Tax Calculator with Income Tax Slab for A.Y. 2015-16 (Click Here)

Important Instruction to file Wealth Tax Return in Form-BB

Income Tax Department has published an Instructions for filing up Return of NET WEALTH (Form-BB) which are helps while filing of Net Wealth Tax Return in Form-BB.  The all detailed instructions are as follows:

INSTRUCTIONS FOR FILLING UP RETURN OF NET WEALTH (FORM BB)
(To be detached before filing the return in a paper form)

This form is to be filled up by all wealth-tax assessees [individual, Hindu Undivided Family (HUF) or company]. This form is applicable for assessment years 2014-15 and subsequent years.

These notes are meant to help you in filling up this return form. They are not a substitute for law. Notes are given only in respect of items that need some explaining.

GENERAL
  • Every individual or HUF or company, whose net wealth exceeds the maximum amount which is not chargeable to wealth tax is obligated to furnish his return of net wealth.
  • This is an annexure-less return and shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax and interest paid, or any document or copy of any account or form of report of valuation by registered valuer required to be attached with the return of net wealth under any provisions of the Wealth-tax Act, 1957. In case return is filed in paper form, all such documents enclosed with the return will be detached and returned to the person filing the return.
  • This return shall be furnished electronically under digital signature. However, for assessment year 2014-15, an individual or a Hindu Undivided Family to whom the provisions of section 44AB of the Income-tax Act, 1961 are not applicable may furnish this return in paper form. From the assessment year 2015-16 and subsequent assessment years, this return form shall be furnished by all assessees electronically under digital signature.
  • All Parts and Columns must be filled in the manner provided hereunder. If any Part or column does not apply, please mention NA (Not Applicable) and do not put any mark or symbol. 
  • In case of return filed in paper form, if space provided under any item of the Return Form is found insufficient, then give the computation in respect of such item on separate sheet(s) using the columns indicated for the purpose under the said item in the Return Form and attach that to the Return. The sum totals of such computation done should be indicated in the columns provided under the relevant item in the Return Form. Similarly, any other information asked for in this Form, which cannot be completely furnished on account of paucity of space, may be furnished on a separate sheet.
  • Sections referred in these instructions are the sections of the Wealth-tax Act, 1957 and references to rules are references to the rules of the Wealth-tax Rules, 1957.
BRIEF SCHEME OF THE LAW
Computation of net wealth
  • Value of an asset, for an assessment year is to be declared as on the valuation date. Valuation date in relation to an assessment year under the Wealth-tax Act, 1957 means the last day of the previous year as defined in section 3 of the Income-tax Act, 1961. Thus, for the Assessment Year 2014-15, the valuation date will be 31.3.2014.
  • Value of an asset, other than cash, is to be determined on the basis of the rules in Schedule III to the Wealth-tax Act, 1957.
  • In the computation of net wealth including net wealth of other persons includible in assessee¡¦s net wealth on the valuation date, the assessee is to furnish in the given columns details of all immovable and movable property held by him and held by any other person which are includible in his/her net wealth of the valuation date.
  • Details of immovable properties mentioned in section 2(ea) of the Wealth-tax Act, 1957 held by the assessee or by any other person includible in his/her net wealth on the valuation date are:-
Any building or land appurtenant thereto (hereinafter referred to as ¡§house¡¨) whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometers from local limits of any municipality (whether known as Municipality, Corporation or by any other name) or a Cantonment board, but does not include -
  1. a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than ten lakh rupees
  2. any house for residential or commercial purposes which forms part of stock-in-trade;
  3. Any house which the assessee may occupy for the purposes of any business or profession carried on by him.
  4. any residential property that has been let out for a minimum period of the three hundred days in the previous year;
  5. Any property in the nature of commercial establishments or complexes;
        "Urban land" means land situate-
        (i)  in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand; or
        (ii) in any area within the distance, measured aerially,-
             (I)   not being more than two kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ten thousand but not exceeding one lakh; or
             (II)  not being more than six kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than one lakh but not exceeding ten lakh; or
             (III) not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ten lakh,
        The definition of urban land excludes the following:
        (A) Land classified as agricultural land in the records of the Government and used for agricultural purposes;
        (B) Land on which construction of a building is not permissible on account of any law or the time being in force;
        (C) Land occupied by any building which has been constructed with the approval of the appropriate Authority.
        (D) Unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him;
        (E) Any land held by the assessee as stock-in-trade for a period of ten years from the date of its acquisition by him; and
Details of assets belonging to any other person but includible in net wealth of the assessee:
  1. Assets transferred to certain relatives or to other persons for the benefit of those relatives or assets transferred under revocable transfer. [Section 4(1)(a)(i), 4(1)(a)(iii), 4(1)(a)(v), 4(1)(a)(vi)].
  2. Assets held by a minor child not being a married daughter of such individual except assets acquired by the minor child from his income referred to in the proviso to subsection (IA) of section 64 of the Income-tax Act, and held on the valuation date. Where the marriage subsists, these assets are includible in the hands of the parent, whose net wealth is greater, and where the marriage does not subsist, in the net wealth of the parent maintaining the minor child.
  3. "Assets held by a physically or mentally handicapped minor child as specified in section 80U of the Income-tax Act, will not be clubbed with the net wealth of the parent."
  4. Interest of a minor child admitted to the benefits of partnership in the assets of a firm. [Section 4(1)(b)]
  5. Individual property of assessee converted into the property of Hindu Undivided Family after 31.12.1969. [Section 4(1A)].
  6. Moneys gifted by means of book entries [Section 4(5A)].
Clause (m) of section (2) of the Wealth-tax Act provides that only debts which have been incurred in relation to the assets assessable to wealth-tax will be allowed to be deducted in computing the net wealth.

Under the provisions of section 6, in the case of an individual who is not a citizen of India or of an individual or Hindu Undivided Family not resident in India or resident but not ordinarily resident in India, or of a company not resident in India during the year ending on the valuation date, the value of assets located outside India is not to be included in the net wealth.

All sheets must be signed by the assessee.

PAGEWISE SCHEME OF THIS FORM
SHEET - 1Part A-GEN (Personal Information, Filing Status):
  • It is compulsory to quote PAN.
  • Use block letters only throughout to fill in this form.
  • Please tick „Ñ appropriate box.
  • State the section under which the return is filed. In case of revised return, please furnish Receipt No. and date of filing.
Part B-NW (Computation of net wealth): Against items 1 to 5, transfer the appropriate figures from the appropriate items of applicable schedules, as indicated.

Part B-TNW (Computation of tax liability on net wealth): Mention amount payable against item 5 and refundable amount against item 6. As the refund, if any, shall be directly deposited into the bank account of the assessee, it is mandatory to furnish the requested details of bank account against item 7.

SHEET - 2
Part B-TP (Details of Tax and Interest paid): Furnish the correct BSR Code of the bank branch, date of deposit (in the DD/MM/YYYY format) and Challan Serial Number as mentioned in challan.
VERIFICATION: Read the instructions below the verification carefully before signing it. Fill all the relevant columns in the verification. Give the place and date as indicated.
Schedule IP (Immovable Property):
  • Furnish the details of all immovable properties, mentioned in section 2(ea)(i) or section 2(ea)(v), held by the assessee whether located in or outside India. Value of immovable property should be declared as per the relevant rules of Schedule III to the Wealth-tax Act, 1957.
  • In Sl. No.1, 2 and 3, furnish complete description, address including of all immovable properties.
  • In Sl. No.4, indicate the value of the immovable property as calculated on the basis of provisions of the relevant rules of Schedule III to the Wealth-tax Act, 1957.
  • In Sl. No.5, indicate the amount of debts owed, if any, separately in relation to each of the immovable property.
  • In Sl. No.7, 8 and 9, in case of valuation by registered valuer, furnish the name of registered valuer, registration number of the valuer and the date of report of the valuer.
Schedule MP [Movable Property (other than jewellery, etc.)]: Furnish the value as per the relevant rules of the Schedule III to the Wealth-tax Act, 1957 and debt owed in relation to motor cars, referred to in section 2(ea)(ii), yacht, etc. referred to in section 2(ea)(iv) and cash in hand referred to in section 2 (ea)(vi).

SHEET - 3Schedule JE (Jewellery, etc.):
  • Furnish the details of all items of jewellery, bullion, etc. referred to in section 2(ea)(iii) in this schedule.
  • In Sl.No.1 to 5, furnish the complete description, weight, etc. of precious metal and precious or semi precious stone.
  • In Sl.No.6 to 8, furnish the value of jewellery as per as per the relevant rules of the Schedule III to the Wealth-tax Act, 1957.
  • As per rule 18(2) of the Schedule III to the Wealth-tax Act, 1957 the return of net wealth is required to be supported by a statement in the prescribed form, if the value of the jewellery on the valuation date does not exceed Rs. 5 lakhs or the report of the registered valuer in the prescribed form, if the value of the jewellery on the valuation date exceeds Rs. 5 lakh. 
  • The statement or the valuation report as mentioned in Rule 18(2) of Schedule III to the Wealthtax Act, 1957 is not required to be furnished along with the return but the details of valuation report i.e. the name of registered valuer, registration no. of the valuer and the date of report are required to be filled in Sl.No. 9 to 11.
Schedule INW (Includible net wealth of other person): Mention the name of the person, relationship, PAN, value, etc. in respect of assets belonging to any other person but includible in the net wealth of the assessee.

Schedule IFA [Interest held in the assets of a firm or association of persons (AOP) as a partner or member thereof]:

Furnish following details in respect of interest held as partner in a firm or as a member of an AOP:-
  1. Name and address of each firm in which interest is held as a partner.
  2. Name and address of each firm(s)/AOP(s) in which interest is held as a member.
  3. PAN of Firm(s)/AOP(s)
  4. Name of other partners/Members
  5. Assessee¡¦s Profit Sharing Ratio in percentage.
  6. The value of the interest in the firm or AOP is to be determined as per relevant rule of Schedule III to the Wealth-tax Act, 1957.
  7. Debt owed, if any, in relation to meet interest is to be shown separately for each firm(s)/AOP(s).
The value of the interest of a minor child in the assets of a firm in which he is admitted to the benefit of partnership in such a firm is to be included in the assessee¡¦s net wealth under the provisions of the proviso to section 4(1)(b), should also be indicated at (i) above.

Schedule ACE [Assets referred to in section 2(ea) which are claimed as exempt under section 5]: Furnish the details of assets exempt under section 5 of the Wealth-tax Act, 1957. These are as nder:-
  • Any property held by the assessee under trust or other legal obligation for any public purpose of a charitable or religious nature in India.
  • The interest of the assessee in the coparcenary property of any HUF of which the assessee is a member, since the asset is already liable to tax in the hands of the HUF.
  • Any one building which was in the occupation of a Ruler, which before the commencement of the Constitution (Twenty-sixth) Amendment was declared as his official residence.
  • Jewellery in the possession of a Ruler, not being his personal property, and recognised by the government as his heirloom or which the Board had recognised as his heirloom at the time of his first assessment to wealth-tax.
  • Moneys and value of assets, or the value of assets acquired by a person of India origin or citizen of India who was residing outside India if he returns to India with the intention of permanently residing in India. The exemption is provided for a period of seven successive assessment years commencing with the assessment year next following his return to India. 
  • In case of individual or HUF, one house or part of a house or a plot of land comprising an area of five hundred square meters or less.
SHEET - 4
Schedule OPR (Other properties):
This schedule is to be filled only by an individual or a HUF. A company is not required to fill this schedule.

In this schedule, furnish the complete details of all immovable and movable property held by the assessee, as on the valuation date, other than the following:
  • assets which are liable for Wealth tax Act, 1957, the details of which are already required to be furnished in other schedules of this return form.
  • assets claimed as exempt under section 5, the details of which are required to be furnished in Schedule ACE;
  • assets located outside India and are excluded under section 6 based on the citizenship or residential status of the assessee; or
  • assets being part of business or profession which is subject to audit under section 44AB of the Income-tax Act, 1961.
Free Download Form-BB (to file Wealth Tax Return)

Two way Income Tax benefits of Children's Education Loan with extended limit for Asstt. Year 2015-16.

It is most important part to take Income Tax Relief by two way on only "Children's Education Loan".  Now, a days the Education cost is rising continuously.

It’s a matter of concern for all of us. One relief is the tax benefit provided for spending on children’s education. The Income Tax Act provides a direct deduction on account of fees paid for the education of dependent children. The act also provides for deduction on account of interest on loans taken for higher education of children.

Tuition Fees - relief u/s. 80C:

This deduction in respect of school Tuition fees which is covered u/s. 80C of the I-T Act. A Taxpayee parent can claim a deduction of payment made for tuition fee to any university, college, school or any other educational institution.

The deduction on payments made towards tuition fee can be claimed up to Rs 100,000 for Asstt. Year 2015-16, together with deduction in respect of insurance, provident fund and pension.

But, there are certain conditions to get this. It can only be claimed in respect of two dependent children and for fees to an educational institution within India and, for tuition fee only. Payment as donation or development fee to an educational institution does not qualify.

Interest on Education Loan - relief u/s. 80E :
Second Tax benefit is deduction on the interest paid for a loan taken for the purpose of higher

As the benefit can be claimed by the parent as well as the child, the person taking the education can start claiming this deduction once he starts earning and paying the interest himself. There is no cap on the amount up to which the deduction can be claimed.

The loan in this regard can be taken from any financial Institution or charitable institution recognized by the central government. It can be claimed on a loan taken for education anywhere in the world.

education. This is available u/s. 80E of the I-T Act. This benefit can be claimed for a loan taken for education of yourself, your spouse, your children and the child for whom you are a legal guardian. It can be claimed for eight years in a row, beginning from the year when the interest payment starts.

Employee P.F. Ceiling Limit increased by Rs. 8500/- i.e. from Rs. 6500/- to Rs. 15000/- for Fin. Year 2014-15.

The Hon'ble Union Minister of Finance in the Budget Speech of 2014-15 has announced enhancement in statutory wage ceiling for enrollment under the EPF and MP Act, 1952 to Rs. 15000/- per month from the current maximum of Rs. 6500/- per month.  On this ground Central Board of Trustees’, Employees' Provident Fund (CBT, EPF) has been issued a circular regarding enhancement of wage ceiling from Rs. 6500/- to Rs. 15000/- per for Fin. Year 2014-15.  This amendments related to the Employees’ Provident Fund Scheme, 1952 (EPF), Employees’ Pension Scheme, 1995 (EPS) Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI) for implementing increase in wage ceiling to Rs. 15,000/- and Minimum Pension of Rs. 1,000/- - issues and modalities.

In view of above, the following preparatory activities are required to be initiated immediately:
  • The total number of establishments in your office be listed out Enforcement Officer wise.  Further, in respect of each establishment "Enforcement Group" and "Enforcement task-id" shall be compulsorily marked in the Application Software;
  • Enforcement officer may be directed to visit the establishment to check the total number of employees drawing salary beyond Rs. 6500/- and upto Rs. 15000/- and not enrolled as members.  The data so collected shall be required immediately after issue of the notification;
  • The tour programme of Enforcement Officer shall be chalked out in such a way that they visit establishments where there is concentration of large number of workers particularly the building and construction industries, placement agencies etc.;
  • Wherever the Enforcement Officers visit the establishment they should also meet the representatives of the workers' unions and apprise then about the said likely notification enhancing the statutory wages ceiling;
  • Meeting may be arranged to apprise the establishment about the intent of the notification and assist them in implementing with same once it is issued.

CBDT constituent Committee to Reduce Tax Disputes cases.

The Central Board of Direct Taxes (CBDT) has constituted a six-member panel vide Office Memorandum [F.NO.279/MISC./M-84/2014-(ITJ)], DATED 17-7-2014 to examine the “efficacy“ of the existing primary litigation mechanism for income tax, taking forward the new government's resolve to bring down tax disputes.

 An estimated Rs. 4 lakh crore of tax revenue is locked up in litigation. The empowered committee has also been mandated to suggest steps to reduce legal cases at the income tax department's two dispute resolution for a and asked to submit its report in eight weeks. Senior Indian Revenue Service (IRS) officer and chief commissioner of the income tax office in Ahmedabad Rani S Nair has been made chairperson of the panel. Five other commissioners, drawn from various field formations of the I-T department, will be members of the panel. The committee would scrutinise close to 7,000 sample cases in the I-T department's dispute resolution fora as part of its task. Over 30,000 cases, in which an amount of Rs. 4 lakh crore is stuck, are pending in these fora, the official added.

“It has been decided to constitute a committee to appraise the efficacy of existing dispute resolution forums of Commissioners of I-T (Appeals) and Income Tax Appellate Tribunal (ITAT) and to suggest steps to reduce litigation before these fora,“ the apex direct taxes body said in a notification. According to the terms of reference issued by CBDT, the committee will carry out detailed analysis of appellate orders and assessment orders on various aspects and recommend steps to reduce litigation before CIT (Appeal). It will also “study the efficacy of existing system of filing appeals to the ITAT by the department and suggest steps to reduce litigation before the ITAT after analysing various aspects“.

There is a four-stage grievance redressal and litigation mechanism available to a taxpayer, beginning with an appeal to the Commissioner of I-T Appeals called CIT (A), up to the ITAT and subsequently to the high courts and the Supreme Court. The CBDT has also asked the new committee to undertake a fresh initiative and categorise and study select assessment orders issued by I-T officers across the country under various income groups (returned income). The categories defined by CBDT include income under Rs. 25 lakh, income between Rs. 25 lakh and Rs. 1 crore, between Rs. 1 crore and Rs. 10 crore, and above Rs. 10 crore. The Office Memorandum regarding Tax Disputes is as follows:
CONSTITUTION OF A COMMITTEE TO STUDY THE APPELLATE ORDERS TO EXAMINE FILING OF APPEALS BY DEPARTMENT BEFORE VARIOUS FORUMS
OFFICE MEMORANDUM [F.NO.279/MISC./M-84/2014-(ITJ)], DATED 17-7-2014
It has been decided to constitute a Committee to appraise the efficacy of existing dispute resolution forums of CsIT (A) & ITAT and to suggest steps to reduce litigation before these forums. The composition of the Committee is as follows: 
Sl. No
Name
Designation
1.
Ms. Rani S Nair
Chief Commissioner of Income tax- II, Ahmedabad
Chairperson
2.
Ms. Uma Singh
CIT(J),Mumbai
Members
3.
Sh. Rakesh Goyal
CIT-XXI, Kolkata

4.
Sh. D K Mishra
CIT (J), Delhi

5.
Sh. Rajib Hota
CIT(TDS),Chennai

6.
Sh. D S Kalyan
CIT(ITAT)-V, Ahmedabad

1.2 The Chairperson may appoint an officer as Member Secretary. The Committee may co-opt other members as it deems fit to have proper representation, co-ordination and feedback from ITAT at non-metro stations.
2. The Committee shall submit its report within 8 weeks from the date of its constitution.
3. The terms of reference of the committee will be as follows.
(i) To carry out detailed analysis of appellate orders and assessment orders, on various aspects as suggested in Para 7 and recommend steps to reduce litigation before the CIT(A).
(ii) To study the efficacy of existing system of filing appeals to the ITAT by the Department and suggest steps to reduce litigation before the ITAT after analyzing various aspects as mentioned in Para 7.
4. The Committee should examine the assessment orders, appellate orders and scrutiny report for the appeal to the ITAT related to orders selected as per guidelines mentioned in Para 5 below and give its recommendations for different income groups as defined in Para 6 separately for corporate and non- corporate assessees.
5. Guidelines to select orders:
(i) Sample should be drawn from the orders passed by the ITAT during the month of June, September, December and March of the FY 2013-14.
(ii) (a) Approximately 200 orders should be selected for study from each of the following 8 major cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad and Bangalore.
(ii) (b) Approximately 150 orders should be selected for study from each of the following stations: Chandigarh, Jaipur, Indore, Lucknow and Kochi.
(iii) As far as possible, orders in cases of corporate and non-corporate assessees should be selected in equal numbers, particularly in Metro charges whereas in non-metro, sample of non-corporate assessees may be larger. It must also be ensured that some orders in search cases are in select basket.
(iv) As number of appeals filed by the Department before ITAT is much larger than appeals filed by the assessee, the order in appeals filed by the Department and by the assessee may be selected in the ratio of 2:1.
6. Analysis should be done and conclusions be drawn separately by categorising assessment orders in various income groups (returned income) as under:
< 25 Lakh
25 Lakh to 1 Crore
1 Crore to 10 Crore
10 Crore and above
7. Within the overall terms of reference, an analysis on the following aspects should be conducted, along with any other that the Committee deems fit:
(i) Assessment Orders: Nature of additions made in general, guidance of supervisory authorities, sustainability of additions in appeal, quality of addition made and average tax effect of additions made in each category at Para 6 above.
(ii) Orders of CIT (A): Whether relief allowed is based on proper marshalling of facts and legal position. The decisions are also to be analysed in the light of the order of the ITAT.
(iii) (a) Authorization by CIT: The filing of second appeal is to be examined as to whether the same is filed mechanically by applying the monetary limits or on sound grounds after examining the merits of each order.
(iii) (b) The Committee should ascertain from the orders of each CIT (A) received during the FY 2013-14 by each administrative CIT under the jurisdiction of CCIT-I & CCIT-VIII Delhi, CCIT-I Ahmedabad, CCIT-II Hyderabad the percentage of appeals filed by the Department in ITAT where the tax effect exceeds monetary limits.
(iv) The success rate of appeals filed by the Department/Assessee before the ITAT to be analysed.
(v) The Committee must also take inputs on relevant issues from DRs in the stations mentioned in Para 5.
8. The Headquarters of the Committee will be in Delhi.

Source: www.taxmann.com

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