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Know about your Pan Card Structure

Friends, If you have PAN Card (Permanent Account No.) for Income Tax purpose so know about your Pan Card Structure.

The Structure of the new series of PAN : The Permanent Account Number under new series is based on following constant permanent parameters of a taxpayer and uses Phonetic Soundex code algorithm to ensure uniqueness :-

i. Full name of the taxpayer;

ii. Date of birth / Date of Incorporation;

iii. Status;

iv. Gender in case of individuals; and

v. Father’s name in case of individuals (including in the cases of married ladies)

These five fields are called core fields, without which PAN cannot be allotted.

The PAN under the new series is allotted centrally by a customized application system (IPAN / AIS) for all-India uniqueness. The system automatically generates a 10 character PAN using the information in above five core fields. PAN has the following structure:-

Structure of PAN

The fourth character of the PAN must be one of the following, depending on the type of assessee:
C Company
PPerson
HHUF(Hindu Undivided Family)
F Firm
A Association of Persons (AOP)
T AOP (Trust)
B Body of Individuals (BOI)
L Local Authority
J Artificial Juridical Person
GGovernment

The fifth character of the PAN is the first character (a) of the surname / last name of the person. In the case of Personal Pan card, where the fourth character is "P" or (b) of the name of the Entity/ Trust/ Society/ Organization in the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Juridical Person/ Government, where the fourth character is "C","H","F","A","T","B","L","J","G".

Know Pan By Name

The phonetic PAN (PPAN) is a new concept which helps prevent allotment of more than one PAN to assessees with same / similar names. AIS works out the PPAN based on some important key fields of an assessee using an internal algorithm. At the time of PAN allotment, the PPAN of the assessee is compared with the PPANs of all the assessees to whom PAN has been allotted all over the nation. If a matching PPAN is detected, a warning is given to the user and a duplicate PPAN report is generated. In such cases, a new PAN can only be allotted if the Assessing Officer chooses to override the duplicate PPAN detection.

No Income Tax return for Salary Person (Employee), whose Gorss Salary less than 500000 Lakhs.

Friends, as per union Budget of 2011-12 the Finance minister of India Pranab Mukharjee announced that if the Salary person whose gross Salary income less than 500000 Lakhs such employee will not have to file tax returns from this year i.e. assessment year 2012-13.

"Salaried people, may be up to Rs 5 lakh.(figure yet not confirmed ) they need not file the (income tax) return," CBDT chairman Sudhir Chandra told reporters at the customary post-Budget press conference.

The exemptions from filing tax returns come into effect from the financial year 2011-12.

In case such a salary earner has income from other sources like dividend, interest etc. and does not want to file returns, he will have to disclose such income to his employer for tax deduction, Chandra said.

The government, he said, is working out a scheme and will notify it "very soon".

The Form 16 issued to salaried employees will be treated as Income Tax Return, he added.

Read Memorandum on Budget clause in Finance Bill

Exemption to a class or classes of persons from furnishing a return of income
Under the existing provisions contained in section 139(1) of the Income-tax Act, every person, if his total income during the previous year exceeds the maximum amount which is not chargeable to income-tax, is required to furnish a return of his income. In the case of salaried tax payer, entire tax liability is discharged by the employer through deduction of tax at source. Complete details of such tax payers are also reported by the employer through Tax Deduction at Source (TDS) statements. Therefore, in cases where there is no other source of income, filing of a return is a duplication of existing information. In order to reduce the compliance burden on small tax payer, it is proposed to insert sub-section (1C) in section 139. This provision empowers the Central Government to exempt, by notification in the Official Gazette, any class or classes of persons from the requirement of furnishing a return of income, having regard to such conditions as may be specified in that notification. Consequential amendments are also proposed to be made to the provisions of section 296 to provide that any notification issued under section 139(1C) shall be laid before Parliament.

Latest Dearness Allowance rate is 51% from January-2011

Friends, Today the Cabinet Body of Indian Government the Finance Minister Pranab Mukharjee reported in press conference Dearness allowance from January-2011 to Central Employee increased by 6% i.e. 45% to 51% from the Month January-2011. As the impact of the hike expenditure of Dearness allowance increased by 1500.50 crore.

About 50 lakh central government employees, hit by high inflation now at 8.31 per cent, will get some relief with cabinet deciding to hike their dearness allowance by 6 per cent retrospectively from January one this year.

Government employees now get 45 per cent of their basic pay as dearness allowance. With the 6 per cent hike, they would now get 51 per cent of their basic as DA, finance minister Pranab Mukherjee told reporters after the cabinet decision on Tuesday.

The 38 lakh government pensioners too would benefit as result of the hike which is in accordance with the formula prescribed by the sixth pay commission for central government employees. The impact of the hike to the exchequer will be Rs 5,715.90 crore per annum. From January 2011 to March 2012, taking into account the whole of next fiscal, the financial burden would work out to be Rs 6,668.52 crore.

The DA is revised twice a year, on January 1 and July 1. The Consumer Price Index (Industrial Workers), which is the basis for revising dearness allowance, was 9.47 per cent in December and 9.30 per cent in January. Inflation has been stubbornly high in India during the last two years, with food inflation in double digit

figures. It has, however, started slowing down since it peaked at around 20 per cent in December. Now it is at 9.42 per cent.

Download Notification Click Here

31st March 2011 is last Date of Annual Income Tax Return for A.Y. 2010-11

Friends, It is very important to file Annual Income Tax Return before the last date of return filing i.e. 31st March 2011. The Last date for an individual having only salary income is 30th June as well as last date for individual having business income (if auditing not required) is 31st August for filing of their Annual Return. For those filing non-auditable accounts. the deadline for filing tax returns has been extended to October 31 from July 31. Salaried class and those deriving income from properties and capital gains will have to file returns by July 31 or pay the interest on taxes due on them. If any tax payee could not be submit their Annual Income Tax Return on or before Due dates they must be submit their Annual Income Tax Return before 31st March 2011 along with Interest as per Income Tax Act.

If you have not ITR-I Click Here (PDF Formate)

If you want see Instructions Regarding Annual Income Tax Return Click Here

Calculate here your Income For A.Y. 2010-11

If you want to Tax Plan for A. Y. 2011-12 Click Here

Click Here for Income Tax Slab

Highlights of Maharashtra State Budget - 2011-12

Friends, Maharashtra State Deputy Chief Minister Mr. Ajit Pawar had been take place first time Budget for the year 2011-12 pm 23rd March 2011 with the major changes which effected in various regulations and shall be more effective from the date to be notified unless otherwise specified.

Considering a satisfactory rise in the sales tax revenue by 26% over earlier year, it is proposed to retain VAT rate on goods covered under schedule E @ 12.5%. The budget proposes certain amendments under the Maharashtra Value Added Tax Act, 2002 (MVAT Act) in respect of the following, which will be notified in due course.

  • Revised returns
  • Providing for deposit instead of advance payment for voluntary registration
  • Changes to the periods for grant of refunds
  • Changes to the provision for refund applications to be filed by dealers making interstate sales
  • Defining ‘exporter’ for the purpose of section 51
  • Providing for penalty for knowingly failing to file complete audit report

Maharashtra Value Added Tax Act, 2002 (MVAT Act, 2002)

Proposal to Extend the Existing Tax Exemption / Concession till 31 March 2012 In Respect Of Following Goods

Sr.

Types of Goods

VAT Rate w. e. f.

1 April 2011

1

Rice, wheat, pulses, and flours thereof, chillies, turmeric, gur, tamarind, coconut, coriander, fenugreek, parsley (suva), papad, wet dates, Solapuri Chadars and towels, Liquefied Petroleum Gas (LPG) for domestic consumption

0%

2

Tea

5%

3

Aviation Turbine Fuel sold at small airports except Mumbai and Pune (Entry No.11 of Schedule D)

4%

Proposal to Reduce Rate of Tax on Following Goods

Sr.

Type of Goods

Tax Rate

Present

Proposed

1

Dry fruits (other than raisins, currants and cashews)

12.50%

5%

2

Vada-Pav (sold in restaurants)

12.50%

5%

Proposal to Increase Rate of Tax on Following Goods

Sr.

Type of Goods

Tax Rate

Present

Proposed

1

All Declared Goods

4%

5%

2

Carbonated soft drinks

12.50%

20%

3

Goggles

5%

12.5%

4

Sales made under section 8(5) to electricity generating, transmission, distribution units, telecom industry, defense and railways.

4%

5%

Proposal To Grant Exemption On Following Goods

  • Prefabricated Domestic Biogas Units
  • Cinematographic copyrights for exhibition in theatres
  • Ral (similar to Dhoop, Loban and Agarbatti)

Tax On Sale Of Telecasting Rights

It is proposed to tax telecasting rights of various entertainment and sports events @ 5%, by including the same in the list of intangible goods.

Turnover Limit Of Composition For Small Bakery Raised

Presently, small bakeries with turnover upto Rs. 30 lacs can avail composition scheme. Considering the increase in general price levels, this turnover limit is proposed to be raised from Rs. 30 lacs to Rs. 50 lacs.

Tax On Liquor Other Than Wine

First Point Levy- With Set Off

− It is proposed to levy tax at first point (on manufacturer or importer) @ 50 % of actual sale price of liquor or @ 25% of Maximum Retail Price (MRP), whichever is lesser.

− Set-off will be available to the manufacturers.

Subsequent Sale- No Set Off

− Tax rate @ 20 % shall be charged on actual sales in hotels of 4 star category and above.

− In other cases, i.e. hotels below 4 star category, bars & restaurants and clubs, the rate of tax shall be 5%.

− No Set-off will be available to these bars, clubs, hotels and restaurants.

Relief To Retailers In Composition Scheme

Retailers under composition scheme were required to have 50% of turnover of commodities liable to tax @ 4% in order to avail concessional composition rate. With general increase in base rate tax from 4% to 5%, the rate 4% mentioned in composition scheme is now being made 5%. This will enable retailers to avail the concessional rate of 5% under the composition scheme.

Relief to Sugar Factories

  • Sugarcane Purchase Tax is payable by a sugar factory during the crushing season, which is normally paid out of loans raised as working capital.
  • To avoid hardships to such factories Sugarcane Purchase Tax is proposed to be collected out of the sale proceeds from sugar at a prescribed rate and balance amount, if any, shall be payable as per last return for September.
  • Excess, if any, shall be refunded to the factory.
  • Interest and penalty in respect of sugar factories with negative net worth who have not crushed cane in previous 3 crushing seasons will be waived, if the sugarcane purchase tax and sales tax is paid immediately. This scheme shall be operative for a period of 1 year starting from 1 April 2011.

No Tax on Fabrics and Sugar

Due to changes in the Additional Duties of Excise in the recent Budget of Central Government, Fabrics and Sugar which are in the list of tax-free goods will become taxable. However, the State budget proposes to keep these goods as tax-free.

Waiver of Interest and Penalty to Soap Industry Certified By Khadi & Village Industry Board

  • It is proposed to waive the interest and penalty on tax leviable on turnover upto Rs. 20 lacs every year, for period from 1 April 2005 to 31 March 2010 in respect of handmade soaps manufactured by such units.
  • The industry, however, will have to deposit the entire tax amount by 30 September 2011 to avail this benefit.

Stern Action against Hawala Dealers

Dealers issuing / procuring false invoices or those making false claims would be punished with imprisonment of 1 year which can extend to 2 years on conviction.

BOMBAY STAMP ACT, 1958

Amendments to Stamp Duty on Stocks and Capital Market

It is proposed to charge a uniform stamp duty of 0.005% on all the transactions of securities, futures, delivery and non-delivery based transactions for clients as well as on own account.

Stamp Duty on Market Value of Transfer of Tenancy Rights

In order to reflect the true value of the transfer of long held tenancy rights of house properties at prime locations, it is proposed that these transactions will now be liable for stamp duty at their market value.

STATE EXCISE DUTY

Increase in the State Excise Duty In Case Of Liquor, etc.

Sr.

Type of product

Proposed Excise Rate

1

Country Liquor

Rs. 95 per proof liter

2

Foreign Liquor

Rs. 240 per proof litre

3

Mild Beer

Rs. 33 per bulk litre

4

Fermented Beer

Rs. 42 per bulk litre