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New Pension Scheme Not Included 1 Lakh Saving Limit Deductions

The New Pension Scheme (NPS) was introduced by the Union Government in 2003. According to the new scheme, employees appointed on or after January 1, 2004 will contribute 10 per cent of their Pay and Dearness Allowance to the Pension Fund Regulatory and Development Authority under the Ministry of Finance. An equal amount will be contributed by the Centre. The scheme is mandatory for Government employees, but optional for other citizens of India. NPS merely declared that tax benefits would be applicable as per the Income Tax Act 1961 as amended from time to time.

THE NEW SECTION 36(1)

The Finance Act, 2011 has inserted a new Section 36 (1)(iva) with effect from assessment year 2012-13 to provide that an assessee will get a deduction in respect of contribution towards a pension scheme referred in Section 80CCD of the Act on account of an employee up to 10 per cent of the salary of the employee in the previous year. For this purpose, ‘salary' includes DA, if the terms of ‘employment' so provide, but excludes all other allowances and perquisites.

Currently, contribution made by an employer towards a recognized provident fund, an approved superannuation fund or an approved gratuity fund is allowable as a deduction from business income under Section 36, subject to certain limits.

However contribution made by an employer to the NPS is not allowed as a deduction. The newly inserted clause provides that any sum paid by the assessee as an employer by way of contribution towards the pension scheme on account of an employee to the extent it does not exceed 10 per cent of the salary of the employee in the previous year, shall be allowed as deduction in computing the income under the head ‘Profits and gains of business or profession'.

No doubt, such deduction would have been available under Section 37. The matter, however, is placed beyond doubt by the new Section. It should, however, be noted that deduction would be available only upon actual payment. The term ‘employee' will include all employees including Director-employees. The limit of 10 per cent will apply to each employee individually. The Finance Act has also amended Section 40A (9) for this purpose.

LIMITS ON DEDUCTION

Section 80CCE provides that the aggregate amount of deduction under Section 80CCC and 80CCD shall not exceed Rs 1 lakh. The Finance Act, 2011 provides that contribution made by the Central Government or any other employer to NPS shall be excluded while computing the limit of Rs 1,00,000. The contribution by the employee to the NPS will be subject to the limit of Rs 1,00,000.

Important Announcement: Award of Scholarship for Higher Education information

Government of India

DEPARTMENT OF SCIENCE AND TECHNOLOGY

Award Scholarship for Higher Education (SHE) under Innovation in Science Pursuit for Inspired Research (INSPIRE)

The details of the scholarship is as under:

Award of Scholarship for Higher Education (SHE) under Innovation in Science Pursuit for Inspired Research (INSPIRE) by virtue of performance within top 1% of the School Board at Class XII level in the examination held during the academic session ending March 2011.

Performance in top 1% in Class XII Board examination and enrolment into education in Basic and Natural Science courses at BSc/ Integrated MSc or MS levels qualify eligibility automatically for Scholarship for Higher Education of GoI valued at Rs 80,000 per year for five years.

If enrolling into Bachelor or Integrated Master’s level programmes in Basic and Natural Science courses [like Mathematics or Statistics or Physics or Chemistry or Life Sciences (Botany or Zoology], in any University or College in India recognized by UGC, India, the candidate is advised to register in Scholarship for Higher Education (SHE) through on-line registration at http://www.inspire-dst.gov.in/requirement.html or through an application to the Department of Science and Technology http://www.inspire-dst.gov.in/inspire-advertisement.pdf by downloading the application and attaching this Advisory Note and avail the eligibility for scholarship.

Note:

1: From Maharashtra State the student securing 81.33 % above marks in HSC examination March 2011 in SCIENCE stream are eligible for this scholarship.

2: Maharashtra State Board is issuing note to such eligible candidate

Through their respective Hr. sec. school’s.

Online HSC Examination Result 2011 to be announced Today at 01.00 PM

HSC Results of Maharashtra State Board Of Secondary And Higher Secondary Education The Maharashtra State Board of Secondary Education, Pune came into existence on January 1, 1966 to regulate certain matters pertaining to secondary education in the state of Maharashtra, India. The act was amended in 1977 and the name of the Board changed to its present name – The Maharashtra State Board of Secondary and Higher Secondary Education.

ONLINE H.S.C. RESULT

Maharashtra HSC board is announced HSC Results 2011 Maharashtra today at 01.00 PM. HSC Results 2011 Maharashtra will be made available on it’s official ebsite :
HSC Results 2011 Maharashtra.

We wish Best of Luck to all the students for HSC Results 2011 Maharashtra.

To See Online HSC Results 2011 Maharashtra Click Here
or
To See HSC Results 2011 Maharashtra Click Here

Finance Ministry neglect towards Income Tax Refunds

Amid fears of slowdown in tax collection in the current fiscal, the Finance Ministry today indicated that it may go slow on disbursement of pending income tax refunds. The indication was given by Revenue Secretary Sunil Mitra at the annual conference of chief commissioners and directors general of income tax here.

“The Board’s (CBDT) proposal to clear all pending refunds of the assessment years 2010-11 and 2011-12 will require to be moderated in keeping with the actual performance in direct tax collections,” he said.

The revenue department is apprehending a slowdown in revenue collection on the back of rising inflation and moderation in domestic economic growth, which according to the RBI is likely to come down to 8% from 8.6% in 2010-11.

Differential Interest Rates removed from Income Tax & E.P.F.

The Central Government (the Ministry of Labour and Employment) had issued a notification No. R-11018 / 1/ 2010.SS- II dated 17.03.2011 in March 2011, providing its approval for crediting of interest at the rate of 9.5 per cent for the year 2010-11 to the account of each Employees’ Provident Fund (“EPF”) member subject to certain conditions. However, the then prevailing notification No. S.O. 2091(E), dated 26.08.2010 issued by the Ministry of Finance [providing for income-tax exemption rate for such interest for the members of Recognised Provident Funds ("RPFs")] had fixed the interest at the rate of 8.5 per cent with effect from 1 September, 2010, beyond which the excess interest credited to the members’ accounts would be liable to income tax and taxable under the head `Salaries’ In terms of Rule 6(b) of the Part A of Fourth Schedule to the Income-tax Act, 1961 read with Section 17(1)(vi) of the Income-tax Act, 1961. Consequentially, the differential interest of 1 per cent credited to the members’ accounts (for the period 1 September, 2010 to 31 March, 2011) was chargeable to income-tax in the hands of the RPFs’ member employees.

This resulted in a disparity between the interest earned on EPF balances and the income-tax exemption enjoyed by the RPFs members.

Notification:

To remove this anomaly, the Central Government has now come up with a notification No S.0.1046(E), dated 13.05.2011 (superseding the earlier prevailing notification dated 26 August, 2010) whereby it fixes interest rate at the rate of 9.5 per cent with retrospective effect from 1 September, 2010 on the EPF balances of the employees which are members of the RPFs. Thus, the interest exceeding at the rate of 9.5 per cent shall be treated as taxable income.

Conclusion:

In view of the clarity provided by this notification issued by the Ministry of Finance, the interest credited to the EPF accounts of the employees (which are members of the RPFs) at the rate of 9.5 per cent for year 2010-11 shall not be taxable.

Source: TaxGuru

Registered & Download Free Income Tax Return Filing Software for Assessment 2011-12

Friends, It is general demand of every tax payee that they how to file Online Income Tax Return Preparation & eFiling Software of ITR-5 & ITR-6 with Excel Utility. The Income Tax department releases on 22.05.2011 official Free Online Income Tax Return Preparation/eFiling Software for ITR-5 which is applicable for partnership Firms and Limited Liability partnership Firm and ITR-6 applicable for Companies. The both ITR-5 & ITR- are only for Assessment year 2011-12 as Income tax Return Filing.

The Income Tax Department has already provided software in respect of ITR -1, ITR-2 , ITR-3 , ITR 4 and ITR 4S.

Registered & Download Now:

Sr. No.

Download

Below

Excel Utility Software

Form No.

1

Excel Utility (Ver. 1.0)

ITR-5

2

Excel Utility (Ver. 1.0)

ITR-6

Dearness Allowance from July, 2011 will be expected by 4% to 6%

Dear Visitors, All employees’ pleasure to know that, what is the Dearness Allowance announced expected by Central Government. As the Central Government, most of state implemented dearness allowance to their employee.

The Central Government declared Dearness allowance 6% increased in current Dearness Allowance from Jan 2011 in March 2011. Now, All Central Government Employees watch for Dearness Allowance from July, 2011, what?

We all aware with controlling on price of Goods, things and others by Department of All India Consumer Price Index Numbers (AICPIN) and as per this the Government has released the price index for the last three months.

Month

Index Cost

Rate of Ratio

Jan-2011

188

2127

177.25

61.49

53.12

53%

Feb-2011

185

2142

178.50

62.74

54.20

54%

Mar-

185

2157

179.75

63.99

55.28

55%


As the above the Dearness Allowance will be increase from 51% to 55% is expected from July-2011. After nest three months it may change the valuation cost on calculation of Index prices. Rather if it is continues in order to this then the Dearness Allowance may be 56% to 57%.

As the increased of petrol and diesel prices, it automatically grow the price index also, in this situation the Dearness Allowance may be increased upto 57% to 58%.