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May increase Tax Slab Exemption Limit for Assessment year 2013-14 in the Budget 2012-13

As per the Economical Finance survey some good news for Salaried Taxpayee that, the Finance Minister Pranab Mukharjee may announced in the Budget 2012-13 New Tax Slab Exemption Limit for Assessment year 2013-14 by increasing the income tax exemption limit up to Rs. 200000.00 Now the existing Tax Exemption limit is Rs. 180000.

Sources indicated that the new tax slabs could be in line with the Direct Taxes Code Bill, which was introduced in Parliament in 2010. The bill has proposed that incomes between Rs. 2 to 5 lakh be taxed 10%, those between Rs. 5 to 10 lakh be taxed 20% and incomes above Rs. 10 lakh per annum be taxed 30%. At present, incomes between Rs. 1.8 lakh and Rs. 5 lakh are taxed 10%, those between Rs. 5 to 8 lakh taxed 20% while incomes above Rs. 8 lakh attract a tax rate of 30%. (Check ready reckoner for Financial year 2011-12)

A rejig in tax slabs along with a hike in exemption limits will enhance people's disposable incomes, which, in turn will boost consumption spending as well as savings.The government is negotiating through a maze of thorny issues ahead of this year's budget amid faltering demand and rising prices that have hit growth in the broader economy.

How to Claim Medical Treatment Deductions u/s. 80DDB?

Most Taxpayee did not aware about claiming of Medical Treatment Deductions u/s. 80DDB, What are the conditions to claim deductions u/s. 80DDB and how much maximum amount to claim as well as diseases disability.

To claim deduction u/s 80DDB following condition should be satisfied.
  1. Taxpayer should be resident in India in the previous year.
  2. Deduction is available to Individual or HUF only.
  3. Deduction is available on actual expenditure on medical treatment of specified Disease or ailment as prescribed.
  4. Expenditure should be incurred for medical treatment of
  • assessee himself
  • wholly/mainly dependent Husband/wife(spouse)
  • wholly /mainly dependent children
  • wholly/mainly dependent parents
  • wholly/mainly dependent Brother
  • wholly/mainly dependent Sisters
  • in case of Huf ,wholly/mainly dependent member of the HUF
5. Assesee shall have to submit certificate in form no 10-I from prescribed specialist working in Government hospital
6. Government hospital includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants;

Amount of Deduction:

1. Deduction is available for Rs. 40000 or amount actually paid ,which ever is less.
2. If expenditure has been done in respect of dependent who is at least of 65 year of age in any time during the previous year then deduction shall be Rs. 60000 or amount paid which ever is less.
3. deduction Amount as arrived in above (1) or (2) will be reduced by amount reimbursed by employer or by insurer.

Specified diseases and ailments for the purpose of deduction under section 80DDB.

(i) Neurological Diseases where the disability level has been certified to be of 40% and above,
(a) Dementia ;
(b) Dystonia Musculorum Deformans ;
(c) Motor Neuron Disease ;
(d) Ataxia ;
(e) Chorea ;
(f) Hemiballismus ;
(g) Aphasia ;
(h) Parkinsons Disease ;
(ii) Malignant Cancers ;
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
(iv) Chronic Renal failure ;
(v) Hematological disorders :
(i) Hemophilia ;
(ii) Thalassaemia.

On the Basic of facts given by you ,you are eligible to for deduction of Rs 40000 only.Enhanced Limit of 60000 is available if dependent /patient is senior citizen (attain age 65 in previous year ) not assesse who is is claiming the deduction.in your case your age is 66 ,However your wife's age is just 60 ,so you are eligible for only 40000 deduction or expenses incurred which ever is less.

Moreover the above said amount will be reduced by the amount reimbursed by employer/Insurance company .In your case this is nil.so you will get 40000 or expenses incurred ,which ever is less as deduction u/s 80DDB of the Income Tax Act.

Extend Limit of PPF Deposit by Rs. 30000.00 i.e. from Rs. 70000.00 to Rs. 100000.00

Earlier every tax payee investors look in to the matter of saving of tax under section 80C, therefore as per newly amendment notification of Department of Economics affairs dated 25th November, 2011, New Delhi, the Tax Payee Depositor should have to deposit maxmium amount upto 100000 in their PPF Account in the Assessment year 2012-13. The detailed notification is as under:

RBI/2011-12/291
DGBA.CDD. No. H- 3572/15.02.001/2011-12
December 05, 2011

The Chairman and Managing Director/Managing Director
Government Accounts Department/Head Office
State Bank of India/State Bank of Patiala/
State Bank of Bikaner & Jaipur/State Bank of Travancore/
State Bank of Hyderabad/State Bank of Mysore/ Andhra Bank/
Allahabad Bank/Bank of Baroda/Bank of India/
Bank of Maharashtra/Canara Bank/Central Bank of India/
Corporation Bank/Dena Bank/Indian Bank/Indian Overseas Bank/
Punjab National Bank/Syndicate Bank/UCO Bank/
Union Bank of India/United Bank of India/Vijaya Bank/IDBI Bank/ICICI Bank Ltd.

Dear Sir/Madam,

Amendment to Public Provident Fund Scheme, 1968 (PPF, 1968)
We forward herewith a copy of Government of India Notifications G.S.R. (E) & S.O.(E) dated November 25, 2011, on the captioned subject, the contents of which are self-explicit.
2. In this regard, we advise that the contents of the Notifications may be brought to the notice of the branches of your bank operating the PPF, 1968 and may also be displayed on the notice boards of your branches for the information of the PPF, 1968 subscribers.
Yours faithfully
(Shrikant Hamine)
Manager
Encls: 2
----------------------------------------------------
[TO BE PUBLISHED IN THE GAZETTE OF INDIA: EXTRAORDINARY, PART II – SEC. 3 (II)]
New Delhi, the 25th November, 2011

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION

G.S.R. (E). – In exercise of the powers conferred by sub-section (4) of section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes the following further amendment to the Public Provident Fund Scheme, 1968, namely : -
1. (1) This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2011.
(2) It shall come into force on the 1st day of December 2011.
2. In the Public Provident Fund Scheme, 1968, -
(i) in paragraph 3, in sub-paragraph (1), for the letters and figures “Rs 70,000/-“, the letters and figures “Rs 1,00,000” shall be substituted;
(ii) in paragraph 11, in sub-paragraph (2), for the words “one per cent. per annum”, the words “two per cent. per annum”, shall be substituted;
(iii) in Form-A, in paragraph (iv), for the letters and figures “Rs70,000/-“, the letters and figures “Rs 1,00,000” shall be substituted.

[F.No. 1/9/2011-NS-II]
M.A. Khan, Under Secretary

Note :- The Scheme was notified vide notification G.S.R.1136(E), dated 15.06.1968 and amended vide G.S.R. 368 (E), dated 1.8.72, G.S.R. 217(E) dated 9.3.79, G.S.R. 271(E), dated 16.3.83, G.S.R. 54 (E), dated 7.2.84, G.S.R. 895(E), dated 23.6.86, G.S.R.1013 (E), dated 20.8.86, G.S.R.793 (E), dated 29.8.89, G.S.R. 477(E), dated 25.5.94, G.S.R. 489(E) dated 6.7.99, G.S.R. 908 (E) dated 6.12.2000, G.S.R. 679 (E), dated 4.10.2002, G.S.R.768(E), dated 15.11.2002, G.S.R. 585 (E), dated 25.7.2003, G.S.R.690 (E) dated 27.8.2003, G.S.R.755(E), dated 19.11.2004, G.S.R.291(E), dated 13.5.2005 and G.S.R.956(E), dated 7.12.2010.
-----------------------------------------------------
[TO BE PUBLISHED IN THE GAZETTE OF INDIA: EXTRAORDINARY, PART II – SEC. 3 (II)]
New Delhi, the 25th November, 2011

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION

S.O. (E). – 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 December, 2011 and balances at the credit of the subscriber shall bear interest at the rate of 8.6 per cent. per annum.

[F.No. 1/9/2011-NS-II]
M.A. Khan, Under Secretary

Note :- The Principal notification was published in the Gazette of India vide number S.O.48(E) dated 15th January, 2000 and subsequently amended vide S.O.192 (E) dated 1st March 2011, S.O.271 (E) dated 1st March, 2002 and S.O. 250(E) dated 1st March, 2003.

How to claim Exemption of "Tuition Fees" u/s. 80C.

Deduction of Exemptions under Chapter VIA, u/s. 80C Deductions starts and in u/s. 80C Tuition fees exempt. In case "Tuition Fees", the maximum limit of Exemption is Rs. 100000/- and whole amount exempt u/s. 80C is Rs. 100000/-.

Relevant part of the section 80c is reproduced here under.

"(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,

(a) to any university, college, school or other educational institution situated within India;

(b) for the purpose of full-time education of any of the persons specified in sub-section (4) "

"(4) The persons referred to in sub-section (2) shall be the following, namely:
(a) ......................
b) .......................
c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual."

Note:
  1. Deduction for tuition Fees is available up to Rs.100000 /-
  2. The limit of one lac as above is total limit u/s 80C for all type of savings ,plus section 80CCC(pension policy) plus u/s 80CCD(Contributory Pension Plan). Means the aggregate amount of deduction under above referred sections can not exceed Rs. 1,00,000.
  3. The deduction is available to Individual Assessee and not for HUF.
  4. The Deduction is available for any two children.
  5. This the only clause u/s 80 C where assessee can not claim tax benefit for expenditure done on himself.Means if assessee has paid tuition fess for his studies ,he will not be eligible.
  6. Deduction is not available for tuition fees paid for studies of spouse.
  7. The deduction is available for Full Time courses only, so no deduction for part time or distance learning courses.(This is my opinion but point is not very clear).
  8. The fees should be paid to university, college, school or other educational institution,so no rebate for private tuition.
  9. Tuition fees paid for coaching courses for admission in professional courses or any other type of courses are not covered as that fees is not paid for FULL time eduction.
  10. The center mention above in point 8 must be situated in India, so location should be in India though it can be affiliated to any foreign institutes.
  11. In This section tuition fees has a wide meaning than normal parlance ,means here tuition fees means total fees paid minus any payment towards any development fees or donation or payment of similar nature.so admission fees is also allowed.
  12. In My Opinion Transport charges , hostel charges, Mess charges , library fees , scooter/cycle/car stand charges is not allowed.
  13. Building fund or any donation etc not allowed.

On surrender Value during Survey of Income Tax there is no Penalty.

Delhi High Court : Commissioner of Income Tax Vs SAS Pharmaceuticals : (2011) 199 Taxmann 255 (Magazine)

Income Tax Act Section 271(1) (c) says that if any person conceal his income than as per this section penalty can be imposed one time of the amount of Income Tax to three time of the amount of Income Tax. In this case, there was an survey on 06.01.2003 in the place of businessman. During survey it was found that there were defecencies in the Cash and Stock of the businessman. Due to this businessman surrender some income and while submitting his regular income, he includes separately income of surrendered amount and pays complete Income Tax. All this has been done by a businessman to avoid litigation and to by peace of mind

Assessing Officer impose penalty on businessman with the saying that if there was no survey, businessman conceal the surrendered amount and do not pay income tax on such amount. He has paid only Income Tax on surrendered amount only after survey. Businessman submit appeal against the penalty amount. In the end, Hon'ble High Court gives his decision that to impose penalty concealment will be watched on the basic of Point of View of Income Tax Return. An amount included in Income Tax Return can not be treated as concealed income. In normal case, Income Tax Departments decide that assessee has concealed any income or not on the basis of Tax Assessment Proceding. Because during Tax Assessment Procedure, there was no extra income in this case, therefore there penalty can not be imposed on assessee.

Updated RPU 2.7 with FVU 3.3 and FVU 2.131 w.e.f. 1st Feb. 12 for e-TDS/e-TCS Returns.

Now a days NSDL RPU 2.6 was running, but why TIN-NSDL launch 2.7 ver with 3.3 and 2.131 ver. The latest 2.7 Version will create FVU file with 3.3 and 2.121 Ver. These files are validity utilities include more controls in the interest of users. After the validation from these utilities, less notice/demands will be raised by Income Tax Department.

have just tried to create a file with NSDL RPU 2.7 and found that there may be change of error in creation of file shown below :
FVU Version : 3.3 Input File Name : 26QRQ3.txt

In above statement error code is T-FV -4278 which has been raised due to wrong percentage mention in Annexure -1 (deductee sheet). I mean to say you have deducted 1% tds on bill amount, but wrongly shown in Rate at which Tax Deducted (427) 27 in 26Q (percentage column) 2%. On correction of this percentage, above error removes automatically.

Secondly now correction statement will only be created on adding consolidating file during file creation. Picture view of the same is given below :
Key features of File Validation Utility (FVU) version 3.3 :
  • FVU 3.3 will be applicable for quarterly TDS/TCS statements pertaining to FY 2010-11 onwards
  • Mandatory to quote Book Identification Number - BIN (in case of regular statement) for tax deposited by book entry (transfer voucher – applicable only in case of Govt. deductors). BIN to contain details as below:
  1. Seven digit 24G receipt number (provided on successful acceptance of Form 24G statement at TIN central system)
  2. Five digit DDO serial no. (provided for each DDO transaction in Form 24G statement)
  3. Date of deposit of Tax
  • Correction file prepared to contain the “Hash value” as per the consolidated file, used for preparation of correction statement.
  • Mandatory to import consolidated file for validating correction statement.
  • For tax deducted at higher rate, if deductee PAN is valid, update allowed on all the fields of the deductee record except, higher deduction flag (flag “C”) mentioned against the corresponding deductee record.
  • FVU 3.3 will be mandatory with effect from February 01, 2012.
  • Files validated with FVU 3.2 and 3.3 will be allowed up to January 31, 2012.
Note :
  • BIN can be obtained by deductor (Drawing and Disbursing Officer) from the respective Pay and Account Office (PAO) / District Treasure Office (DTO).
  • BIN can also be downloaded by the DDO under the TAN account login.
Key features of File Validation Utility (FVU) version 2.131 :
  • FVU 2.131 will be applicable for quarterly TDS/TCS statements (regular and correction) pertaining up to FY 2009-10.
  • Correction file prepared to contain the “Hash value” as per the consolidated file used for preparation of correction statement.
  • Mandatory to import consolidated file for validating correction statement.
  • FVU 2.131 will be mandatory with effect from February 01, 2012.
  • Files validated with FVU 2.130 and 2.131 will be allowed up to January 31, 2012.

How to determine and undertaking Deductions u/s. 80IC of Income Tax Act.

In respect to determine and undertaking Deductions u/s. 80 IC of Income Tax in certain special category states are as under:

Assessee eligible for deduction: - every assessee is eligible for this deduction irrespective of its residential status or corporate status. Deduction is operative from the assessment year 2004-05 and onwards.

Conditions to be satisfied: - the following conditions to be satisfied for the deductions under section 80 IC of income tax act.

Return of income to be furnished: - under section 80 AC of income tax act, the assessee should furnish return of income within the time limit specified under section 139(1) of income tax act.

Accounts of the enterprises or undertaking to be audited: - under section 80IA (7) of income tax act, the accounts of the assessee should be audited by a chartered accountant from the relevant year for which deduction is claimed. The report of such report should be furnished along with the return of income in the prescribed form duly signed and verified by chartered accountant.

Undertaking should be new and not formed by splitting up or reconstruction of an existing business: - under section 80IC (4) of income tax act, the object of these incentives is to promote new investment and not just relocation of existing ones. Therefore, it has been provided that the eligible undertaking should be new and not formed by splitting up and reconstruction of an existing business.

Exception in case of re-establishment, reconstruction of revival of an undertaking: - however this condition does not apply where the undertaking is discontinued due to extensive damage or destruction of its building, machinery or plant and furniture or account of natural disasters, civil disturbance, accidental fire or explosion, enemy action etc. and such undertaking is re-established within 3 years from the end of such previous year.
New plant and machinery used by the undertaking: - under section 80 IC (4) of income tax act, use of old plant and machinery is prohibited except under the following cases.

For import and use of second hand plant or machinery in India is deemed to be a new plant and machinery. Second hand plant or machinery imported and put to use for the first time in India is not to be regarded as machinery or plant previously used provided the following conditions are satisfied.
(1) It was used outside India by a person other than the assessee.
(2) Such plant and machinery is used in India for the first time.
(3) No depreciation in respect of such plant and machinery has been allowed or is allowable under the act for a period prior to its installation by the assessee.

Transfer of old plant or machinery not exceeding 20% of the total value of plant or machinery of the new undertaking :- where the value of plant or machinery previously used by the assessee is transferred to the new undertaking, such value should not exceed 20% of the total value of plant or machinery used in the new undertaking.

Production schedule, nature of product and location: - the enterprise or undertaking must manufacture or produce the specified articles or things within the stated time period in special category states. An existing enterprise or undertaking manufacturing or producing eligible articles or things will be covered, provided it’s substantially expands its business.

How to calculate Stock, What is its method, When Case is in Scrutiny or Appeal - New Decision.

As per the latest decision of High Court against Income Tax and Assessee for Stock Valuation in Books of Account, this method is not on the basis of Market Value.

Commissioner of Income Tax Vs C Jayanti Lal (2011) 199 Taxmann 34 (Magazine) : During scrutiny of this case, ITO has added income worth Rs. 17.71 Lakh due to difference in stock amount. ITO has calculated Stock on the basis of Market Value. Due to this an amount of Rs. 17.71 Lakh has been added by ITO. But this case goes in High Court and accepted that Stock Valuation has been calculated by businessman as per rules " Cost Price and Market Value " which ever is less. On the basis of this rule, addition of Rs. 17.71 Lakh has been deleted by High Court.

Note : If an assessee calculates his closing stock on a particular method in last few years, Assessing Authority (A.O. ) can not create any addition/demand on the basis of different Stock Valuation Method.

How to claim Mediclaim Exemption u/s. 80D of Income Tax Act?

Now a days, Taxpayee (Assessee) are engaged to see how to save Income Tax from various criteria. The best option is that Mediclaim Exemption to save Income Tax u/s. 80D and secure the heath. The medicalim Policy is for Individual and HUF are available and get benefit of Tax u/s. 80D. The details regarding 80D and medicalim Insurance are as under:

1. Addition to section 80 C: Section 80D is available other than 100000 deduction available under 80C for life insurance, ppf, gpf, tuition fee, ULIP, House loan repayment etc.
2. Insurer covered: This deduction is available for medical claim policy which should be framed in this behalf by
* by GIC (General insurance Corporation) or by
* any other insurer but approved by IRDA (Insurance Regulatory Development authority)
3. Available to : Deduction is available to
* Individual (resident or non resident, Indian Citizen or foreign citizen)
* HUF(Hindu undivided Family may be resident or non resident)
4. Mode of payment: Insurance Premium should be paid by any mode other than by Cash . Means if insurance premium is paid by cash then no deduction is available.Before Assessment year 2008-09 ,only payment by cheque was allowed under this section but from Ay 2008-09 onwards the deduction is allowed by other mode also like online payment which is now a days is very popular or by credit card is also allowed.
5. Out of Income : The amount should be paid out of the income chargeable to tax.
6. Proposer of the policy is not must: The premium is to be paid to effect or keep inforce insurance policy ,there is no condition that assessee should be the proposer of the policy ,
7. Partly contribution: Assessee can partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)
8. Insurance cover on?: First deduction given below : Insurance Premium may be paid for medical claim insurance policy for assessee himself or spouse or dependent children or any combination of three.
9. Addition for parents: Second deduction given below:Insurance premium may be paid for medical claim insurance for assessee parents (father or mother or for both)
10. Deduction upto 40000: Theoretically ,maximum deduction can be claimed for Rs 40000.(detail as given below)

Amount Of deduction : Two type of Deductions are available to Individuals under this section from Assessment year 2009-10

1. Deduction on Medical insurance premium paid for himself,spouse,dependent children =Rs 15000 maximum.
2. Deduction on Medical insurance premium paid for parents ,whether dependent on assesee or not =Rs 15000 maximum

Deduction to HUF: Deduction to HUF is available on insurance premium paid for policy taken for of any member of the HUF.

Addition deduction for Resident Senior Citizen: In addition to two point above, additional deduction of Rs 5000 is available where assessee or his spouse (wife or husband) or dependent parents or any member of the family in case one and father or mother is a resident in India and a senior citizen in case two.And same in the case of HUF assessee if policy has been taken on member which is senior citizen than additional Rs 5000/- deduction is available also to HUF.

Senior citizen means who is at least of 65 year of age or more at any time during the previous year.

Wish you all Happy Republic Day 26th January.


In India, When the Constitution of India came into force replacing by the Government of India Act, 1935 as the Governing document of India on 26th January 1950, call Republic Day therefore this Day celebrate on Honor as Republic Day.

WISH YOU ALL
HAPPY REPUBLIC DAY..



How to decide Selling of Own land after Plotting, is the Business Income or Capital Gain?

Now a days business person making more income from plotting business, but non-taxpayee having ancestral property and decide to selling it as plotting business and get more income from them, then how to decide this income is capital gain or Business Income.

Whether selling of own land after plotting it out in order to secure better prices, in an advantage of trade or business?

Facts of the case: - the assessee received certain agricultural land by way of gift-deed. Therefore, the assessee got the said land diverted for non-agricultural purposes.

The land was converted into plots. The assessee tool development work of the colony such as leveling of the land, construction of the roads and drainage system etc. and thereafter sold the plots. The assessing officer proposes to assess the income from sale of plots as business income, being adventure in the nature of trade.

Held: - the earning from the sale of land is from capital gain and not from business. The selling of own land after plotting it out in order to secure better prices is not an adventure in the nature of trade. An isolated transaction or activity cannot be a part of the business.

To consider the question of business, there must be regular activities of purchase and sale. In this case, there was nothing on record to show that the land was purchased for the purpose of selling into plots. Basically, it was gifted land which was developed into plots to secure better prices. The isolated activities could not come within the preview of adventure in the nature of trade or business.

When delays to NEFT Credit Fund in time get 10.50% interest benefit.

By RBI instructions to Banks that when NEFT (National Electronic Fund Transfer) transfer fund to another account, it takes a few hours but when it would be late transferred and is usually done with the same day then it could be a delay transfer fund and thus the benefit of interest of 10.5% takes place on this NEFT Credits.

Types of delay Sometimes there is a delay in crediting the beneficiary customer's account. When you transfer funds via NEFT to a friend's account and there is a delay in the funds being credited to his/her account. Then there is a delay in returning the un-credited amount to the remitter. At times, there is a delay from the bank's side in doing so.

The rule The Reserve Bank of India (RBI) had issued some guidelines for banks. According to these, banks are required to pay a penal interest at the current RBI's repo rate plus 2% for the delayed period, or until the date of refund, as per the case. The repo rate is currently 8.5%, so you should get 10.5% as penal interest on any delay.

What you can do If you find that your NEFTs are delayed, get in touch with the bank customer facilitation centres (CFCs). If for some reason, the CFC details displayed on the bank's website is outdated or you do not get a response, get in touch with RBI's banking ombudsman.

Updated Form 16/16A PDF Converter Utility Ver. 1.3 Free Download

Now TDS Deductor Generate Form 16A in PDF Format and issue Form 16A to TDS Deductee. ForFree Form 16A PDF Converter Utility TDS Deductor must Registered TAN with NSDL-TIN. The Procedure for Download of Form 16A in PDF are as follows:

Form 16A PDF Converter Utility:
  1. The Form 16A text file is to be passed through the PDF Converter Utility to convert to generate PAN wise Form 16A in PDF format.
  2. The PDF Converter Utility is available to registered TANs at TIN.
  3. It is available under the option ‘Form 16A’ post login to TAN account.
Procedure for Download of Form 16A PDF converter utility
  • Download “FORM_16A_PDF_CONVERTER” from TAN registration login under the option “Download PDF converter” in Form 16A menu. Form 16A PDF converter utility can be downloaded at the desired location.
  • JRE (Java Run-time Environment) [versions: SUN JRE: 1.6 and above] should be installed on the computer where the e-TDS/TCS FVU is being installed.
  • JRE is freely downloadable from http://java.sun.com or http://www.ibm.com/developerworks/java/jdk or You may ask your computer vendor (hardware) to install the same for you.
  • For installing the Form 16A PDF converter, double click on the exe (FORM_16A_PDF_CONVERTER.exe) file downloaded from TAN registration login.
  • On double clicking, a window will be displayed for extracting the contents of the exe file. Default location for extracting the files will be C drive.
  • The files can also be extracted in any other location (other than C drive). In that case, define the appropriate path by clicking the ‘Browse’ button where the files are to be extracted.
  • For extracting the contents of the file click “Unzip” button. On clicking the “Unzip” button, two files will be extracted at the default path (C:\PDF Converter Utility) or the desired location as the case may be:
  • PDF Converter Utility.jar
  • Start_Form16A_Utility.bat
  • To open the PDF converter utility, double click on the file “PDF Converter Utility.bat” available in the folder where PDF converter utility has been installed. On double click of the file, window as below will open.
Procedure for Download of Form 16A PDF Converter (Click Here)

How to save Income Tax upto 6180.00, Get today Infrastructural Tax Saving Bond.

Every Salaried Employee/Taxpayee viewing to save Income Tax, but how & which is reliable as well as secure safe. We suggest them L&T is the best Infrastructural Tax Saving Bond for those employee whose Taxable Income goes to above 800000.00. With the help of such type of bonds, income tax assessee can save extra benefit of saving of Rs. 20,000.00 under section 80CCF. Credit rating of L&T is CARE AA [ICRA] AA+.

Scheduled time:
  • Opening Date of issue is 10th January, 2012
  • Closing Date of issue is 11th, February, 2012
The following KYC Documents are required for submission of L&T Infra Bonds 2012A series.

1. Identification Proof for individuals:
  • Passport
  • Voter's ID
  • Driving Licence
  • Government ID Card
  • Defence ID Card
  • Photo PAN Card
  • Photo Ration Card
2. Address Proof (Residential) :
  • Passport
  • Voter's ID
  • Driving License
  • Ration Card
  • Society Outgoing Bill
  • Life Insurance Policy
  • Electricity Bill
  • Telephone (Land/Mobile) Bill.
3. Copy of the PAN card.

Download Form Click Here
Download KYC Documents Information
Click Here

What persecution takes by the Deductor when TDS Deposit/Payment made late?

When the TDS Deductor (Individual/HUF/Company), default to deposit/payment TDS within stipulated prescribed time at Central Government such Deductor (Individual/HUF/Company) it must takes below persecutions:

Facts of the case: - the assessee-company deducted an amount as TDS but deposited this amount with interest to the credit of the central government after the prescribed time limit. Thereafter, show-cause notice was issued to the company and its director, being the principal officer of the company, for the prosecution under section 276B and Section 278B of income tax act. The company contends that TDS has already been deposited, there was no default and no prosecution can be ordered.

Held: - once a statute requires to pay tax and stipulates period within which such payment is to be made, the payment must be made within that period. If the payment is not made within that period, there is default and an appropriate action can be taken under the act. Interpretation canvassed by the appellant would make the provision relating to prosecution nugatory. It is true that the act provides for imposition of penalty for non-payment of tax. That however, does not take away the power to prosecute accused person if an offense has been committed by them.

Company is liable to prosecution even though, it is not a natural person but legal or juristic person. Principal Officer of the company could be prosecuted if no reasonable cause was shown by him for late payment or non-payment. [Madhumilan Syntex Ltd. Vs. Union of India (2007) 160 taxman 71(SC)].

Challan Correction of e-TDS/e-TCS total process and its Mechanism with Conditions & Application Format.

Challan Correction Mechanism:
Under OLTAS (On Line Tax Accounting System), the physical challans of all Direct Tax payments received from the deductors / taxpayers are digitized on daily basis by the collecting banks and the data transmitted to TIN (Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers.

New Procedure of challan correction by banks (for physical challans):
To remedy this situation, a new Challan Correction Mechanism for physical challans has been put in place. Under this mechanism, for income tax payments made on or after 1.9.2011, the following fields can be got corrected through the concerned bank branch:
  • Assessment Year
  • Major Head Code
  • Minor Head Code
  • TAN/PAN
  • Total Amount
  • Nature of payment (TDS Codes)
The time window for the correction request by tax payer is as follows :

S.No

Correction required in Field name

Period of Correction Request (from Challan Deposit Date)

1

TAN/PAN

7 days

2

Assessment Year

7 days

3

Amount

7 days

4

Other fields (Major head, Minor head, Nature of payment)

Within 3 months


The time window for correction by the bank is 7 days from the date of receipt of correction request from the tax-payer.

Conditions:
The changes can be made by the banks, subject to following conditions:
  1. Correction in Name is not permitted.
  2. Any combination of correction of Minor Head and Assessment Year together is not allowed.
  3. PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.
  4. The change of amount will be permitted only on the condition that the amount so corrected is not different from the amount actually received by the bank and credited to Govt. Account.
  5. For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.
  6. There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.
Procedure:
  1. The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
  2. The tax-payer has to attach copy of original challan counterfoil.
  3. In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached.
  4. In case of correction desired for payments made by a tax-payer (other than an individual), the original authorization with seal of the non-individual tax¬payer is required to be attached with the request form.
  5. A separate request form is to be submitted for each challan.
Procedure of challan correction by Assessing Officers (both physical and e-payment challans) After the window period available to banks for challan correction, the assessee can make a request for correction to his or her assessing officer, who is authorized under the departmental OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned assessee.

Format of application to bank for challan correction to be requested by the taxpayer

To

The Branch Manager,
----------------------------
(Address of Branch)

Taxpayer Details : Taxpayer Name :
Taxpayer Address :
Taxpayer TAN/PAN :
Name of Authorized Signatory : (in case of non-individual taxpayer)

Sub : Request for Correction in Challan No: 280/281/282/283 [Strike out which ever is not applicable]

Sir/Madam,
I request you to make corrections in the challan data as per following details Challan Details:

BSR Code

Challan Tender Date (Cash/Cheque Deposit Date)

Challan Sl. No.




Sl. No.

Fields in which correction required

Please Tick

Original Details

Modified Details

1.

TAN/PAN (10 digit)




2.

Assessment Year (YYYY)




3.

Major Head code (4 digit)




4.

Minor Head code (3 digit)




5.

Nature of Payment (3 digit)




6.

Total Amount (13 digit)





Note: Please tick against the relevant fields where changes are required. Tax payer/Authorized Signatory Date

Note:
  1. Attach copy of original challan counterfoil.
  2. In case of correction to challan 280, 282, 283 attach copy of PAN card.
  3. In case of a non-individual tax payer, attach the original authorization with seal of the non-individual tax-payer.
  4. The request form for correction is to be submitted in duplicate to the bank branch.
  5. A separate request form is to be submitted for each challan.