New e-TDS/TCS Return Preparation Utility Ver. 1.1 for Regular Statements from FY 2007-08 on-wards.

Recently, Tin.nsdl has released latest Return Preparation Utility version 1.1 based on Java platform for regular statements from financial year 2007-08 and onwards. Before this utility for Regular RPU version 4.3 is the used.  Apart from this the RPU Version 1.1 in java platform, Why?.  Because, it is easy to use and incorporated with FVU version 4.6. There are many new features added in java based RPU version 1.1 which are as under.

The e-TDS/TCS RPU is a Java based utility. JRE (Java Run-time Environment) [versions: SUN JRE: 1.6 onwards] should be installed on the computer where the e-TDS/TCS FVU is being installed. Java is freely downloadable from http://java.sun.com and http://www.ibm.com/developerworks/java/jdk or you can ask your vendor providing computer facilities (hardware) to install the same for you.

The e-TDS/TCS RPU setup file (e-TDS/TCS RPU.zip) comprises mainly of three files and rest are supporting jar files. Main jar files are as listed below:

  • TDS_RPU.jar: This is RPU program file. This is executable file.
  • TDS_FVU_STANDALONE_4.6.jar: This is the FVU program file (for financial year greater than 2009-10)
  • TDS_FVU_STANDALONE_2.142.jar: This is the FVU program file (for financial year less than equal to 2009-10). 

Other supporting files are as below:

  • barbecue-1.5.jar
  • bcprov-jdk14-141.jar
  • NSDL-Root.cer
  • pd4ml.jar
  • ss_css2.jar

Key features of RPU 1.1

  • NSDL e-TDS/TCS Return Preparation Utility in JAVA platform.
  • Preparation of Regular TDS/TCS Statement(s) for Form 24Q, 26Q, 27Q & 27EQ pertaining to Financial Year 2007-08 onwards (for all quarters).
  • Quoting of PAN of responsible person for deducting/ collecting tax.
  • Quoting of AIN mandatory only if the TDS/TCS has been deposited by book entry i.e., through transfer voucher.
  • Quoting of BIN mandatory only for the statements pertaining to FY 2013-14 onwards.
  • Reduction in the applicable list of “Nature of Remittances” (Applicable in case of Form no. 27Q).
  • NSDL RPU is a freely downloadable utility.
  • Incorporation of latest File Validation Utility (FVU) version 4.6 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.142 (applicable for TDS/TCS statements upto FY 2009-10).

New Latest Download e-TDS/TCS RPU Ver. 1.1 (Click Here)

Only 5% D.A. will be increased from July 2015.

As to AICPIN Index value declared by Consumer Price Index Numbers for Industrial Workers of India.  The AICPIN Index Value is hike 1 point i.e.  "254"  in the month of March.  Though this Point is continues stand in that case the Additional Dearness Allowance will be increased by 5% i.e. The Dearness Allowance from July-2015 is 118%.

Labour Bureau published the CPI-IW for the month of March 2015, the index is increased by one point and stood at 254.

G.I., Min. of Lab. & Emp., Labour Bureau, Press Release No 5/1/2015- CPI, dt, 30.4.2015

Consumer Price Index for Industrial Workers (CPI-IW) – March, 2015

The All-India CPI-IW for March, 2015 increased by 1 point and pegged at 254 (two hundred and fifty four). On 1-month percentage change, it increased by (+) 0.40 per cent between February, 2015 and March, 2015 when compared with the increase of (+) 0.42 per cent between the same two months a year ago.

The maximum upward pressure to the change in current index came from Food group contributing (+) 0.57 percentage points to the total change. At item level, Wheat, Arhar Dal, Goat Meat, Fish Fresh, Milk (Buffalo & Cow), Vegetable & Fruit items, Tea (Readymade), Firewood, Doctor’s Fee, Private Tuition Fee, Petrol, Tailoring Charges, etc. are responsible for the increase in index. However, this increase was restricted by Rice, Eggs (Hen), Onion, Potato, Sugar, Electricity Charges, Flower/Flower Garlands, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 6.28 per cent for March, 2015 as compared to 6.30 per cent for the previous month and 6.70 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 6.98 per cent against 7.42 per cent of the previous month and 7.50 per cent during the corresponding month of the previous year.

At centre level, Goa and Ghaziabad reported the highest increase of 10 points each followed by Bhavnagar (7 points), Lucknow (5 points), Indore, Varanasi and Chhindwara (4 points each). Among others, 3 points increase was observed in 10 centres, 2 points in 4 centres and 1 point in 21 centres. On the contrary, Tiruchirapally centre recorded a maximum decrease of 12 points followed by Belgaum (4 points) and Doom Dooma Tinsukia (3 points). Among others, 2 points decrease was observed in 5 centres and 1 point in 10 centres. Rest of the 18 centres’ indices remained stationary.

The indices of 37 centres are above All India Index and other 39 centres’ indices are below national average. The index of Vishakhapathnam and Chhindwara centres remained at par with All-India index.

The next index of CPI-IW for the month of April, 2015 will be released on Friday, 29th May, 2015. The same will also be available on the office website www.labourbureau.gov.in.

Important Due Dates in May-2015 regarding Income Tax and TDS.

Just start the Month of May-2015 and thus Important due dates in this month are must to know, which are given below:

7 May 2015 – Due date for deposit of Tax deducted/collected for the month of April, 2015

15 May 2015 – Quarterly statement of TDS/TCS deposited for the quarter ending March 31, 2015

22 May 2015 – Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of April, 2015

30 May 2015 – Quarterly TDS/TCS certificates in respect of tax deducted (for payment other than salary) or tax collected during the quarter ending March 31, 2015

30 May 2015 – Submission of a statement by non-resident (under Section 285) having a liaison office in India for the financial year 2014-15

31 May 2015 – Certificate of tax deducted at source to employees in respect of salary paid and tax deducted during 2014-15

31 May 2015 – Return of tax deduction from contributions paid by the trustees of an approved superannuation fund.

Source: Income Tax

No penalty on non-deduction of tax if assessee bona-fide believed that no tax shall be deducted

Gifts were distributed without deducting tax to employees on a bona fide believe that such gifts shall not form part of salary. Thus, such distribution shall not attract penalty.   image1

Case: Commissioner of Income Tax vs. Indian Petrochemicals Corporation Ltd.

Facts:
The assessee being a Public Sector Unit filed its return of income. The cas was under scrutiny. The AO noticed that the assessee distributed gifts coupons to its employees. The said gifts were not disclosd in the return and thus, no deduction of tax on the same.

The AO passes an order under section 201 (1). Penalty under section 271(1)(c) was also imposed on the assessee.

The Commissioner (Appeals) rejected the appeal of the assessee.

Aggrieved by the order, assessee appealed to the tribunal. The Tribunal deleted the penalty levied upon the assessee.

Revenue appealed to the High Court.

Held:
The Revenue argued that the gift coupons given to employees were for performance of their duty and not as mementos. Therefore, they were classified as perquisite in the hands of the employees.

While the assessee submitted that being a large scale Public Sector Undertaking pays a huge amount of tax in terms of deduction from salary of its employees. Even the past record of the company does not show any default in payment of TDS.

The assessee bona-fide believed that the gifts coupons distributed shall not form part of salaries. It was under an impression that gift coupons, being in the nature of mementos to commemorate conferment of awards, were not in the nature of payment of salary.

Since the assessee was under a genuine and bona fide belief that it was not under any obligation to deduct tax at source, penalty u/s.271C shall not be levied as reasonable cause was shown for not deducting tax at source. The liability to penalty u/s.271C shall be imposed only on the person who does not have good and sufficient reason for not deducting tax at source.

Thus, no penalty on non-deduction of tax if assessee bona-fide believed that no tax shall be deducted.

Source: Tax Mantra (Alok Patnia)

Inappropriate Usage of Digital Signature Certificates (DSC) for availing services of TRACES

As per the records of Centralized Processing Cell (TDS), it has been observed that Online Corrections have been submitted by you on TRACES by using Digital Signature Certificate. However, there are no Registered Digital Signature Certificates (DSC) available currently in your profile.

Immediate Attention:

  • The Centralized Processing Cell (TDS) has provisioned for use of Digital Signature Certificate (DSC) on its web-portal TRACES for availing various services offered by the portal. As per Section 204 read with Section 200 of the Income Tax Act, 1961 and other relevant provisions for deduction of tax "Authorized Person" is referred to as "Person Responsible".
  • TRACES has provided facility for Admin to facilitate authorized Sub-users to carry out activities on TRACES and submit to the Admin user. The Admin user has the rights to approve the activities using the DSC.
  • For availing above services, only the DSC of the "Person Responsible", as appearing in the "Profile" of the Deductor on TRACES, should be used.

However, the system log evidences that:

  • The PAN of the Authorized Person was changed to a PAN belonging to a person other than the Authorized Person 
  • The DSC of such person has been used to submit Online Corrections and 
  • After completing the transaction, the PAN has later been reverted back to that of the Person Responsible, which does not have a DSC. 
  • Digital Signature means authentication of any TDS electronic record. It keeps record of the person who is availing the facility. Use of Digital Signature should be made with due caution. Sharing of DSC by any person would also be liable for consequences. In accordance with the Information Technology Act, 2000, every subscriber is require to retain control of the private key corresponding to the public key listed in his Digital Signature Certificate to prevent its disclosure. 
  • It is therefore, advised to refrain from using the Digital Signature of any person other than the Authorized Person appointed by the deductor, for carrying out any activity on TRACES.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Source: Traces

Late Filing Fees and Penalty for TDS/TCS Statements for Asstt. Year 2015-16

Before understanding the penalty provisions for failure to furnish the statement of Tax Deducted at Source or statement of Tax Collected as Source (i.e. commonly known as TDS/TCS return) we shall first have a look at the few basic duties of a person liable to deduct/collect tax at source and due dates for filing of TDS/TCS return.

Duties of the person liable to deduct/collect tax at source

  • He shall obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be) and quote the same in all the documents pertaining to TDS/TCS.
  • He shall deduct/collect the tax at source at the applicable rate.
  • He shall pay the tax deducted/collected by him to the credit of the Government.
  • He shall file the periodic TDS/TCS statements, i.e., TDS/TCS return.
  • He shall issue the TDS/TCS certificate in respect of tax deducted/collected by him.

Due Dates for filing of TDS/TCS return
The due dates for filing of statement of TDS i.e. TDS return for different quarters are as follows:


Now we will understand the provisions relating to penalty for not furnishing the TDS/TCS statement i.e. TDS/TCS return. 

Basic provisions
A person who fails to file the TDS/TCS return or does not file the TDS/TCS return by the due dates prescribed in this regard has to pay late filing fees as provided under section 234E and apart from late filing fees he shall be liable to pay penalty under section 271H.  In this part you can gain knowledge about the provisions of section 234E and section 271H.

Late filing fees under section 234E
As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS. TDS/TCS return cannot be filed without payment of late filing fees as discussed above. In other words, the late filing fees shall be deposited before filing the TDS return. It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.

Read about Penalty under section 271H (Click Here)

Free Download Justification Report Excel Generation Utility v2.1.

Recently, A new version(2.1) of Excel Generation utility for Justification report has been rolled out by TRACES.  This is updated Justification Report text file format to convert the same into readable Excel format.  This utility is used to convert from "TXT" to "XLS" format Justification report.

Why its need?

It is very useful to know about details of calculation of defaults.  The Deductors are receiving Default Notices from Income Tax department.  To know the calculation of default, Justification Report is provided by Income Tax Department and Traces provides report in Text format thus this utility converts Text file to Excel format.  In this way, separate sheets of Excel File details the calculation of defaults sent by Income Tax Department.

Steps to convert the Justification Report text file into excel:

  • Download the zip file from 'Requested Downloads' screen and save to your local machine
  • Unzip the file using Winzip. Password to unzip is 'JR__
    __', e.g., JR_AAAAA1235A_24Q_Q3_2010-11. This will save the Justification Report as a text file
  • Download the macro utility for Justification Report from this screen
  • Double-click the utility, excel sheet will open
  • Click on 'Enable Content' in the warning message to enable macros
  • Select the Justification Report text file and the folder to save the output excel file and click on button 'Generate TDS CPC Justification Report'
  • The text file will be converted into excel spreadsheet and saved in the selected folder
  • Open the Justification Report excel file from the folder in which it has been saved

Download Latest Justification Report Utility Ver. 2.1 (Click Here)

Key Features of Pradhan Mantri Suraksha Bima Yojana Jeewan Jyoti Bima Yojana.

Recently, The Finance Minister announced two major social security scheme in his budget speech i.e. Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeewan Jyoti Bima Yojana.

Important Key Features of Pradhan Mantri Suraksha Bima Yojana is as under:

Eligibility: Available to people in age group 18 to 70 years with bank account.

Premium:  Rs.12 per annum.

Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.

Risk Coverage:  For accidental death and full disability - Rs.2 Lakh and for partial disability – Rs.1 Lakh.

Eligibility: Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme.  Name of nominee to be given in the form.

Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank.

Who will implement this Scheme?: The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.

Government Contribution:

  • Various Ministries can co-contribute premium for various categories of their beneficiaries from their budget or from Public Welfare Fund created in this budget from unclaimed money. This will be decided separately during the year.
  • Common Publicity Expenditure will be borne by the Government.

Important Key Features of Pradhan Mantri Jeewan Jyoti Bima Yojana is as under:

Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.

Premium:  Rs.330 per annum.  It will be auto-debited in one instalment.

Payment Mode:  The payment of premium will be directly auto-debited by the bank from the subscribers account.

Risk Coverage: Rs.2 Lakh in case of death for any reason.

Terms of Risk Coverage: A person has to opt for the scheme every year.  He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.

Who will implement this Scheme?: The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.

Government Contribution:

  • Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money.  This will be decided separately during the year.
  • Common Publicity Expenditure will be borne by Government.

Free e-Taxation (Android App) for Mobile Tax Payers Users.

Recently we find Free Android Application for Mobile Tax Payers Users i.e. E-Taxation ver. 2.0.

Features:
1. Practical and theoretical knowledge of Direct Tax.
2. Case laws, circulars, notifications, public notice, tax calendar, corporate and taxation news.
3. Mock Test for students appearing for final exam.

Description 
Income Tax of INDIA

Features:
1. Practical knowledge of Direct Tax
2. Mock test for students appearing for exam
3. Latest case laws
4. Latest circulars
5. Income Tax notifications
6. public notice
7. tax calendar
8. corporate and taxation news
9. Basic Income Tax
10. Residential Status
11. Income Tax Returns
12. Documentations
13. Tax Rates
14. Tax on Individual
15. Tax on Senior Citizen
16. Tax on Super Senior Citizen
17. Due Dates of Return
18. TDS with PAN
19. TDS without PAN
20. Advance Tax Calculation
21. Interest Penalty as per section 234A, 234B and 234C
22. Computation of Income Tax
23. Tax on Salary 
24. Tax on House Property
25. Tax on Capital Gain
26. Tax on Income from Other Sources
27. Rebate 87A
28. Partnership Firm
29. Depreciation Chart
30. Deduction 80C to 80U
31. Assessment Procedure
32. Clubbing of Income
33. Carry Forward and set-off
34. Wealth Tax
35. Tax Planning

Other Key Features:
1. Income Tax Calendar
2. Public Notice
3. Income Tax Notification
4. Income Tax Circular
5. Case Laws
6. Text Papers



Click here to Download & Install E-Taxation Free App