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Difference between TDS and TCS Deducations.

The purpose of section 206C is that the seller will collect tax from the purchaser in respect of sale of alcoholic liquor, forest timber, tendu leaves, scraps, etc., at the specified percentage as tax on income from dealing with these goods by the purchaser. This is similar to deduction of tax at source by the payer. Such tax collection at source is paid to the government on behalf of the purchasers of these goods.
  • Such tax collected at source is to be treated on par with tax deductible at source and therefore should be taken into account while computing advance tax payable by purchaser of goods specified in section 206C.
  • Credit should be given to TCS under section 206C from tax on assessed income to compute shortfall in payment of advance tax and for calculation of interest under section 234B - [2012] 20 taxmann.com 801 (Hyderabad - Trib.)

Circular regarding Intra-Bank Deposit Accounts Portability.

There is a portability in the bank accounts where the bank remains same. Like one has the bank account with SBI, Delhi and the account holder transfers to Mumbai. He can transfer his bank account with any of Mumbai branch and can deal with same account number.

Reserve Bank of India gives instructions about the account portability. RBI has issued circular no. 528 dated 27-04-2012 about the rules and requirements for the account portability with the same bank. Full circular is as under.

RBI/2011-12/528
DBOD.AML. BC. No. 97/14.01.001/2011-12
April 27, 2012

The Chairmen/Chief Executive Officers,
All Scheduled Commercial Banks (excluding RRBs)/Local Area Banks

Dear Sir,
Intra-bank Deposit Accounts Portability

It has been brought to our notice that some banks are insisting on opening of fresh accounts by customers when customers approach them for transferring their account from one branch of the bank to another branch of the same bank. Such insistence on opening of fresh account or making the customer undergo full KYC process again causes inconvenience to them resulting in poor customer service. It is not reasonable in view of the fact that most bank branches are now on CBS and KYC records of a particular customer can be accessed by any branch of the bank.

2. Banks are advised that KYC once done by one branch of the bank should be valid for transfer of the account within the bankas long as full KYC has been done for the concerned account. The customer should be allowed to transfer his account from one branch to another branch without restrictions. In order to comply with KYC requirements of correct address of the person, fresh address proof may be obtained from him/her upon such transfer by the transferee branch. It may be noted thatinstructions regarding periodical updation of KYC data in terms of para 2.4(e) and those on maintenance of records of identity and transaction in terms of para 2.21(iii) of our Master circular DBOD.AML.BC. No.2/14.01.001/ 2009-10 dated July 01, 2011 remain unchanged and banks will be required to carry out the updation at prescribed intervals as also maintain records of transactions and verification of identity as prescribed.

3. Please acknowledge receipt.
Yours faithfully,
(Sudha Damodar)
Chief General Manager

Form - 16 with Part-A & Part-B generate from NSDL ".fvu".

Good news for Taxpayee & Tax Deductors that the TIN-NSDL has announced and published a new Form - 16 auto generation system along with Part-A and Part-B whichever is applicable.  This facility only possible to those Taxpayee or Tax Deductors whose TAN Registred with NSDL.  Therefore I request to Taxpayee and Tax Deductors to registered TAN with TIN-NSDL.

NSDL - Form - 16 gives to Taxpayee or Tax Deductor as follows:
  1. PART A
  2. Summary of Tax Deducted at source (Quarterly basis)
  3. PART B
  4. Annexure-A
  5. Annexure-B
Please Note:  Generation of FORM NO. 16 through NSDL does not print PART-B of the FORM 16. In case a deductor generate form no 16 through NDSL, he gets only PART-A, summary of tax deducted at source, annexure-A and Annexure- B.

Complete Procedure to File TDS/e-TDS Returns by e-Filling Process For Asstt. Year 2012-13.

Friends, TIN provide us the complete procedure to file our TDS/e-TDS Return (Q1,Q2,Q3 and Q4). Regarding How to file your TDS/e-TDS Return, the complete procedure are as follows:

Procedure For e-filing Of TDS Returns

1. Objective:
The basic objectives of computerization of TDS returns is to cut down the compliance cost for deductors, to correlate deduction of taxes made by deductors with the deposit of the deducted tax in the Government account in a designated bank/and correlate deduction of tax by the deductors with the corresponding credits claimed by the deductees. In phase-I of TIN it is proposed to receive the electronic TDS returns of corporate deductors and to digitise the paper TDS returns of other deductors. In Phase-II of TIN the work relating to dematerialization of TDS certificates will be taken up so that cross verification of deduction by the Deductors with the
claims of deductees can be carried out. Some of the issues pertaining to this scheme are explained in the form of Frequently Asked Questions (FAQs) and are available on this site.

2. Scheme for Electronic Filing of TDS returns:
The scheme for electronic filing of TDS returns was notified on 26.8.2003. The Board Circular No.8 dated 19.9.2003 clarifies the procedure in this regard. The procedure basically envisages that corporate deductors will prepare their TDS returns in the new TDS return Forms 24, 26 or 27, according to the data structure notified by e-Filing Administrator. The e-TDS returns in the prescribed data structure stored on CD ROM and supported by a duly signed control chart in Form 27A in paper format will be submitted to an e-TDS Intermediary appointed by
the Board .

3. e -TDS Administrator and e-TDS Intermediary:
The CBDT has appointed Director General of Income-tax (Systems) as e-TDS Administrator. Separately, M/s National Securities Depository Limited (NSDL), who are also the agency hosting TIN, have been appointed as e-TDS Intermediary. During the current financial year, NSDL will be opening their front offices at 42 stations throughout the country, for receiving e-TDS returns of all deductors. NSDL w.e.f. 19.01.2004 will set up their front offices called as ‘TIN Facilitation
Centre’ at 42 stations throughout the country, for receiving e-TDS returns w.e.f. 19.01.2004. NSDL will set up their front offices at 65 stations more during the next financial year so that they will have presence at all stations where administrative CsIT are located.

4. Procedure for allotment of TAN:
4.1 All deductors required to e-file their TDS returns have to quote their reformatted Tax Deduction Account Numbers (TAN) in their respective TDS returns. A large number of deductors have already obtained these re -formatted TANs which are unique countrywide. Wherever TAN has not been allotted or old TANs have not been reformatted, applications in Form 49B can be filed with NSDL. All old applications for allotment of new TAN/ reformatted TAN pending in the Department, will be disposed at the earliest.
4.2 NSDL has also been authorised to receive applications (form 49B)for allotment of TAN at their front offices for fee of Rs.50/- to be paid by the applicant to them. The data in respect o f such TAN applications will be entered by NSDL and sent to National Computer Centre (NCC) of Income-tax Department and the respective computer centres on-line . The allotment of TAN will be done by the IT department centres and communicated online to NSDL who will
intimate the same to the applicant.

5. Preparation of e-TDS returns:
5.1 New forms of TDS returns in Form No.24, 26, & 27 (enclosed herewith), a control chart in Form 27A have been notified by the Board vide notification dated 31.7.2003 consequent upon amendment to Rule 30 of IT Rules, 1962. The e-TDS returns have to be prepared in these new forms and according to the data structure prescribed by e-TDS administrator. This is necessary so that the data structure of e-TDS returns is compatible with the departmental application
software for processing the same.
5.2 The prescribed data structure can be downloaded from this website as also of NSDL (http://tin.nsdl.com) This can also be obtained from the front offices of NSDL. While preparing the e-TDS returns, the deductor has to ensure that following mandatory requirements listed in Circular No.8 of CBDT dated 19.9.2003, are complied with :
(i) Tax deduction Account Number (TAN) of the deductor is clearly mentioned in the TDS return as also on Form No.27A, as required by sub-section (2) of section 203A of the Income-tax Act. However, in cases where TAN is not available the e-TDS returns will also be accepted if the same is accompanied with an application inForm 49B for allotment or for reformatting.
(ii) Full particulars relating to deposit of tax deducted at source, in the designated bank are correctly and properly filled in the table at item No.6 of Form No.24 or item No.5 of Form No.26 or item No.5 of Form No.27, as the case may be.
(iii) The data in the e-TDS return is as per the data structure prescribed by the e-Filing Administrator.
(iv) The Control Chart in Form 27A is duly filled in all columns, signed and enclosed in paper form with the return on computer media.
(v) The Control Totals of the amount paid and the tax deducted at source as mentioned at item No.3 of Form No. 27A tally with the corresponding totals in the e-TDS return in Form No. 24 or FormNo. 26 or Form No. 27, as the case may be.
In case any of these mandatory requirements are not fulfilled, the e -TDS return will not be received by the e -TDS intermediary.
5.3 The deductors should prepare their e-TDS return as per the above procedure, store the data on a CD ROM, enclose the control chart (Form 27A in paper format) and submit these at any of the front offices of NSDL. Although the scheme permits e-TDS returns to be prepared on a floppy, it would be preferable that these are prepared on a CD ROM to avoid any loss of data, viruses etc.

6. Filing of e-TDS returns:
6.1 The e-TDS return can be filed at any of the TIC Facilitaion Centres offices being opened by NSDL at 42 cities. At the receipt stage, these front offices will carryout validation checks on the e -TDS returns to ensure compliance with above five parameters, and a provisional receipt will be issued on successful validation. 6.2 Section 139A(5 B) requires that PAN of the deductees should be mentioned in the TDS returns. Wherever PAN of deductees is not mentioned by a deductor in
his e-TDS return, this fact will be recorded on the provisional receipt as deficiency, to be removed by the deductor. However, in such cases, NSDL will accept the e -TDS returns. The deficiency can be removed by the deductor within 7 days, failing which the e-TDS returns will be sent by NSDL to the Department indicating the deficiency therein for appropriate action by the concerned A.O.

7. Upload Charges:
Since e-filing of TDS returns will reduce the voluminous paper work involved in filing of paper TDS returns and enclosures thereby significantly reducing the compliance cost of deductors, the e -intermediary i.e. NSDL have been authorised to collect service charges in respect of the various services being rendered by them to the deductors for upload of e-TDS returns at the following rates:

Category of e-TDS return Upload charges
Returns having records of up to 100 deductee records Rs.25/-
Returns having records of 101 to 1000 deductee records Rs. 150/-
Returns having records of more than 1000 deductee records Rs.500/-
Service tax if any will be payable by deductors in addition to the above

Download Now for More details with concerning links (Click Here)

EPF Interest Rate increased by 0.35% for Current Fiscal.

Interest rate on employees' provident fund will be increased to 8.60% in the current fiscal from 8.25% now. Labour Minister Mallikarjun Kharge said in the Rajya Sabha while replying a debate on working of Labour Ministry. He said next time, it will be 8.60%.

The Employees' Provident Fund Organization had brought down the rate of interest to 8.25% for 2011-12 from 9.50% per cent provided in 2010-11.

The retirement fund body EPFO has parked in excess of 55,000 crore rupees in the Special Deposit Schemes (SDS) aimed at providing better returns to non-government provident funds and other such funds. Kharge said the rate of interest on funds depend on the revenues.

A view about Effect of Budget on Income Tax For Financial Year 2012-13.

Year Budget Effected on Tax Policies for nest Financial Year all taxpayee knows although it more effected on Income Tax except other Tax i.e. Service Tax, Excise Tax etc. A common Man watches all on Budget every year only for projection of income and saving of tax. Some Important Changes in this Financial Year 2012-13 by Budget-2012 are as follows:
  1. Rajiv Gandhi Equity Savings scheme: It will provide income tax deduction of 50% for those who invest upto Rs.50,000 directly into equities and whose annual income is less than Rs.10 lakh, subject to a three -year lock in.
  2. Implementation of Direct tax code has again been deferred and won’t be applicable from 1st April, 2012.
  3. Exemption limit raised to Rs 2 lakhs from Rs 1.8 lakh. 30% slab now starts from 10 lakh rather than 8 lakh earlier. Men and women now have same tax slab. No gender bias.
  4. Within the existing limit for deduction allowed for health insurance, Rs 5000 deduction for preventive health checkup is allowed.
  5. Deduction of upto 10,000 for interest from savings bank accounts under a new section 80TTA. 
  6. Senior citizens not having income from business proposed to be exempted from payment of advance tax.
  7. Securities Transaction tax (STT) reduced to 0.1% from 0.125%
  8. Exemption from Capital Gains tax on sale of residential property, if sale consideration is used for subscription in equity of a manufacturing SME for purchase of new plant and machinery.
  9. Service tax rate increased to 12% from current 10%. This would mean more taxes in your mobile, telephone, internet, restaurant bills and life insurance premium etc.
  10. Import duty free amount limit raised to Rs 35000 from 25000. So guys coming from abroad can bring more stuff.
  11. Gold to be more expensive. Customs duty on standard gold raised from 2 per cent to 4 per cent.
  12. Duty on large cars raised to 27%, so cars would be more expensive now.
  13. Tax saving mutual funds (ELSS) deduction to continue.
  14. 80C deduction on insurance policies purchased after 1st April, 2012 only if premium is less than 10% of sum assured. Benefit for existing purchased policies to continue.
  15. 1% TDS on any immovable property sale above 50 lakh (20 lakh in case of non-urban areas).
  16. 1% tax at source on cash purchases of jewellery over Rs 2 lakh.
  17. 80CCF deduction for infrastructure bonds not valid anymore. 
  18. Income tax return filing would be now mandatory for every resident having any asset located outside India irrespective of the fact whether the resident taxpayer has taxable income or not.
  19. 80G deduction not applicable in case donation is done in form of case for amount over Rs 10,000.

TDS Details to New Employer and how to furnish Form 12B?

As per Rule 26A of Income Tax Act, it must to funish Form 12B by a Tax Deductor (Newly Join i.e. Organization, SSI (Small Scale Industry), Trust etc.) while issuing TDS Certificate (Form 16) to Tax Deductee under Section 192(2) of Income Tax Act.  The Form 12B  is required to submit by the New Employee to the Employer as details under:
  • Details of your previous employer i.e.PAN No., TAN Number etc.
  • Break up of Salary like Basic Salary + DA, Perquisites, House Rent Allowance etc.
  • You are also required to furnish the deduction and accreditation with respect to Provident Fund and details of Rent Free Accommodation (if any)
These details in Form 12B are required to be furnished based on the Salary Slip and the Form 16 issued to you by your previous employer. /Form 12B/ is required to be furnished even if no TDS was deducted by your previous employer because the salary was less than the basic exemption limit as per the Income Tax Slabs. It is quite possible that after combining your current and previous salary, your total salary is chargeable to tax.
Download Form 12B Click Here.

How to submit Annual Income Tax Return? And what are the responsibilities of Taxpayee?

Friends, The Income Tax Department allows to file your Income Tax Returns even on or before 31st July, 2012 without any Interest or Penalties for the Assessment Year 2012-13. Due to this reason, Gsoftnet develops Tax Projection Calculator to count your Income Tax and Project of your Tax as per updated Income Tax Slab of Fin. Year 2011-12.
  1. CAN'T REVISE RETURNS: If you miss the deadline, you will not be able to revise your returns. But if you file your returns by this deadline and later realise that you need to revise your returns, you get time till two years from the end of financial year or assessment year, whichever is earlier.
  2. CAN'T CARRY FORWARD LOSSES: I-T rules permit you to carry forward losses to the next assessment year. But you can't do so if you miss the deadline.
  3. PAY INTEREST: If you had tax dues in the current assessment year and you failed to file your returns on time, you have to pay interest.
  4. IF YOU MISS MARCH 31,2012 DATE: You may have to pay a Rs. 5,000 penalty and the return can be filed by March 31, 2013.
Responsibilities of Tax Payee to check while submission of Income Tax Return :
  • Collect PAN Number
  • Salary income – Form 16/ Form 16A
  • Compile proof of other incomes
  • Calculate gross total income
  • Detail your eligible investments
  • Keep TDS Certificates handy
  • Pay taxes due if any, after TDS / advance tax
  • File appropriate return form
If you want to file your Income Tax Return by SAHAJ (Click Here)
Download Forms (ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6) Click Here
Do you know How to Submit your Income Tax (Click Here Now)

Who is eligible to get relief on Income from House Property?

Always Taxpayee feel confused about income tax on house property whereas income tax laws are well defined on income from house property. Income tax on house property is well defined as any income from property which is let out on rent will be taxed under the head income from house property. The income will be deduct with any municipal tax paid, any interest re-payment on loan taken on the same property as well as standard deduction which is 30%.

In second condition if the house property is not rent out and used by him, then the value of the property will be deemed as nil while computing the annual value of property for tax purpose.

In third situation if the individual has his own property and he does not live in this house for any reason being employment or business or profession in another city, and he live in another house which is not own by him, the property which is in another city and which is not occupied by him will be deemed self occupied property and annual value will be treated as zero while computing the annual value for income tax.

Some judicial cases were also held that if an individual has his own property but doesn’t resides that property, the same will be deemed as his self occupied house and the annual value will be treated as zero. But this relief (not necessary as self occupied) is only available to individual tax payer and not to any other category of income tax payee. In income tax provision the term “his own residence” means the property should be of individual to claim this benefit. Companies and partnership firms are not living entities and cannot claim that relief as they cannot be called his own residence. The tern his own residence is for physical reside and not for fictitious entities.

One recent case was held by the honorable Gujarat High Court, the income tax assessee was HUF and not an individual. HUF made claim that relief on house property as self occupied property. The HUF firm getting income from house properties. The assessing officer denied the claim of relief on self occupied house as it is only available to an individual and not to fictitious entities.

The HUF firm applies the case to appellate level, where the case was rejected as the relief is not for HUF. The firm went to Tribunal and the Income tax Tribunal at the second level of appellate level gives the case in favor of HUF Firm and allowed to make claim of relief to HUF as well.

Income tax department read my decisions given on different cases and also analysis the cases other than income tax. One of the similar cases was of wealth tax in which exemption is only available to the individual for his residential purpose only. The department also studied the case in which the same relief was denied by the court in partnership firm. In one case the Gujarat high court ruled that HUF can reside in the house owned by it and is allowed to claim the exemption in wealth tax.

So in this case Honorable Gujarat high court ruled that HUF is the group of persons having blood relation and it is not a fictitious entity like partnership firm or company. HUF consist of natural people and only a group of natural people including men, women and children includes in it. So how can one dispute in it that only an individual and not a family can reside in a house. In India almost in every house family and not only an individual lives in the house.

HUF is the Hindu undivided family and a family consists of real persons and not artificial persons. The honorable court also ruled that his own is also called their own and owner can also be called owners for calculating the relief under income from house property.

So the court ruled that HUF can also claim the relief in income from house property if the family owns that house and resides in it. This is the big relief for the taxpayers who has ancestral property as well as to the persons who has the property in the name of HUF for the tax saving purposes.

TDS on Rent Income U/s. 194-I of Income Tax Act, a new Provision.

On Land / Building / Furniture / Fittings Rent Income, the TDS Deduction is must under Section 194-I of Income Tax Act.  As per the latest ammendment in Section 194-I,  the rent income of Plant / Machinery / Equipments for all parties will entertain TDS at 2% and renting of Land / Building / Furniture / Fittings at 10% for all types of assessees.

Limit of Receipts:
The provision are applicable only in cases where the person making the payment of rent is an individual or HUF having turnover of more then Rs. 40 Lakhs from business or gross receipts of more than Rs.10Lakhs from profession in the immediately preceding financial year or any other person responsible for paying to a resident any income by way of rent.

How much Minimum Amount to Deduct TDS?
The TDS is required to be deducted in case the rent paid or payable to a particular person during a financial year exceeds Rs. 1,20,000.
 
On Which Property ?
Machinery, Plant and equipments, building whether rented together with building or separately W.e.f. 1-4-2009, education cuss or H.E.C. Is not required to be deducted at the time of making deduction of tax at source in case of payment to resident. Surcharge and Education Cess for A.Y. 2010-11.

Excise and Service Tax Revised Tax Return Format.

Service Tax and Central Excise Department has revised format of Tax return as ER-1, ER-2 and ST-3.  Return ER-1 needs to be filled monthly whereas ER-2 quarterly and ST-3 in every six month. The department has issued draft no. 201 dated 13-04-2012 about the revised process. The full draft is as follows.

F No 201/05/2011-CX.6
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)
*****
New Delhi, the 13th April, 2012

Subject: Revised format for Excise and Service Tax Return- regarding

The attached document is a draft circular containing details of proposed amendments to harmonize the ER-1, ER-3 and ST-3 returns so that a single common return can be prescribed instead of these three returns as measure of simplification of the Business Processes in respect of filing the Return by assesses. The draft is being placed in public domain for widest possible circulation and an extensive debate from all stakeholders in trade and industry as also from all the field formations of the department. All suggestions and feedback from Trade as well as Field formations, may please be emailed at dircx1@nic.in or at vp60singh@gmail.com latest by 15th May 2012. The feedback and suggestions received would be considered for revising the proposed amendments.

Download Revised Form Click Here

File Income Tax Return by Online e-Filing Return Procedure.

Friends, regarding Income Tax Return, the most important things I will share with you as and hereafter. But on the contrary most of Taxpayee not watch or read the post carefully. So due to this problem I will try to my level best to clarify & escape from Problem of online Income Tax Return Filing for Assessment year 2012-13.

Some are very easy task for layman even you don’t required any software. However you need to know about scrolling of computer mouse. There are lots of benefits to file income tax return online. No need to stand in long queues at the income tax department. No fear of lost any document, one can print and download whenever you wants after log-in your account.

Filing Income Tax Return:
  1. Select appropriate type of Return Form
  2. Download Return Preparation Software for selected Return Form.
  3. Fill your return offline and generate a XML file.
  4. Go to Income Tax Department website.
  5. Register and create a user id/password
  6. Login and click on relevant form on left panel and select “Submit Return
  7. Browse to select XML file and click on “Upload” button
  8. On successful upload acknowledgment details would be displayed. Click on “Print” to generate printout of acknowledgment/ITR-V Form.
  9. In case the return is digitally signed, on generation of “Acknowledgment” the Return Filing process gets completed. You may take a printout of the Acknowledgment for your record.
  10. In case the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgment cum verification form. The tax payer has to fill-up the verification part and verify the same.
  11. Update: Now you have to send ITR-V to the “Income Tax Department , CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka”. They’ll send the acknowledgment receipt at your email address.
  12. For any assistance in filing the paper copy of the return please contact by comment form given below.

How to Pay your Taxes through ATM?

Friends, as per the current requirement of every tax payee person that they should pay their income tax through ATM or Online. Online facility is provided by the Government, similarly Income Tax, Tax Deducted at Source and Tax Collected at Source is also deposited through ATM.

No forms, no queues. Just go to your ATM and pay your income tax. The government on Thursday launched the new facility for tax payment and said it was to begin with open only to Union Bank of India customers but will be extended to other banks.

Here's how it will work. The bank's debit cards holders will register on the lender's website. This site is in turn linked to the National Securities Depositories Ltd which will help validate the permanent account number (PAN) of individuals and the Tax Deduction Account Number (TAN) provided to taxpayers.

After the registration, a customer can go to a Union Bank ATM and can surf the income tax menu which will display his PAN number and ask for the tax amount that is to be paid along with item-wise details of any other amount the assessee may want to include in the tax payment.

On confirmation, the tax amount will be debited from the customer's account and the ATM will generate a receipt with a special number. After 24 hours, customers can log on to the bank's website, submit the special number and print a challan.

Up to eight family members of a Union Bank of India customer can pay tax through the bank's ATM even if they do not have an account with the public sector player.

Union bank CMD M V Nair said the bank was looking at the possibility of extending the service to payment of other taxes as well as allowing customers of other banks to use its ATM for income tax payment.

At present, taxpayers have to go to a bank branch to pay tax after filling up a form and then collect a copy of the challan. At the end of every quarter, bank branches are overflowing with taxpayers trying to meet the deadline.

A tax department official said that other banks may be roped in but it was for the banks to come up with proposals. Increasingly, the tax department is pushing for electronic channels to collect taxes and returns. Special incentives such as early processing of returns have enticed taxpayers to avail of the electronic channels instead of queuing up at counters. (The Time of India, Apr 1, 2011)

Notification Regarding Printing of MICR Code and IFSC Code on Passbook/Statement of Account

RBI/2011-12/516
DPSS (CO) RTGS No. 1934/04.04.002/2011-12

April 20, 2012

The Chairman and Managing Director /
Chief Executive Officer of all banks participating in RTGS, NEFT and NECS

Dear Sir/Madam,

Printing of MICR Code and IFSC Code on Passbook/Statement of Account

As you are aware, the MICR code is necessary for all Electronic Clearing Service (ECS – Credit and Debit) transactions. Similarly, the IFSC code is a pre-requisite for NEFT and RTGS transactions.

2. Currently, the MICR code is available on the cheque leaf along with the IFSC code of the branch. On a review it has been decided that this information should also be made available in the passbook / statement of account of the account holders.

3. Banks are accordingly advised to take necessary steps to provide this information as indicated above in all passbook / statement of account to their account holders.

4. Please acknowledge receipt and furnish an action taken report within 15 days of receipt of the circular.

Yours faithfully,

Chief General Manager
(Vijay Chugh)


Error in Software of NSDL to Generate Return Statistic Report.

Taxpayee and Deductor enjoying the Free Down-loadable Software provided by NSDL, which gives e-TDS RPU (Return Preparation Utility) with FVU. Although this software have an error to generate Return Statistic Report. This TIN-NSDL e-Return RUP Software does not gives this facility to Taxpayee or Deductor. Most of Taxpayee and Deductor may have faced this error. Due to this some followings are to resolved it :

Now, question arise that, How can resolve problem relating to file generation of "Return Statistic Report" in E-TDS RPU.

How to Resove this problem?
Steps Follows:
  • Check Name of Employee/Deductee in Annexure.
  • You have typed Name in " " like "Ravi Kumar " instead of Ravi Kumar
  • You have used two rows in typing a single name as shown below:- i.e. Ravi Kumar instead of Ravi Kumar(such type of error can be traced through copy the name from annexure of RPU and paste in excel)
Initially, I was facing problem in generation Return Statistic Report and after correction as shown in above steps, RPU has generated " Return Statistic Report " in seconds.

How to get Form No. 16AA from Employer to Salaried Employee for Filing of Return.

The scheme is optional and provides an additional mode of furnishing returns of income by persons deriving income from salaries. An eligible employee (having gross salary upto Rs 1,80,000) may at his option furnish his return through he employer under the Scheme, as follows:
  1. On receipt of TDS in Form 16AA from the employer, he shall verify the information given and furnish the same after signing and verifying to the employer before the due date.
  2. On receipt of the duly signed and verified Form 16 AA, the employer shall furnish the return of i9ncome to the income tax department and receive an acknowledgment.
  3. The employer shall ensure that the return is furnished before the due date and distribute the acknowledgment to the respective eligible employees and the date on which the employer furnished the return shall be treated as the date of filing of return by the eligible employee.”

Excel (Software) Utility to File Central Excise and Service Tax Return ER-1 to ER-6 & ER-8.

Excel (Software) Utility to File Central Excise and Service Tax Return ER-1 to ER-6 & ER-8.

Excel Utilities

Last Updated

Download ER1 Return Excel Utility

06/04/2012

Download ER2 Return Excel Utility

06/04/2012

Download ER3 Return Excel Utility

06/04/2012

(For Filing ER-3 returns for the Quarter Oct-Dec.2011 Onwards)

Download ER4 Return Excel Utility

06/04/2012

Download ER5 Return Excel Utility

06/04/2012

Download ER6 Return Excel Utility

06/04/2012

Download ER7 Return Excel Utility

06/04/2012

Download ER8 Return Excel Utility

06/04/2012

Download Dealer Return Excel Utility

06/04/2012

Download ER3 Return Excel Utility

06/04/2012

(For Filing ER-3 returns for the Quarter upto July-Sep.2011)


TDS on Salary, 6th Pay Arrears and Relief of U/s. 89 (1)

I have developed a new calculator for 6th Pay Arrears. This calculator calculate all the all the arrears of 6th Pay till October- 2011 in all conditions. It is more useful and easy to operate and excel base. This calculator also calculate the TDS amount which is deductible from Arrears amount and also take relief of u/s. 89(1) to the Employee.

Excel Base Software Requirement:
OS = Minimum Windows XP 2 or Above
Your System must have = MS Office 7

Helping Picture:

Entry Fields:
ES Sheet = All Black fields are Enter Data Fields
AS Sheet = Arrears Sheet and others.

How to Download?
Click on Below Link to Download
6th Pay Arrears Calculator

Calculate your TDS Amount Click Here

Calculate your Relief u/s 89(1) Click Here

To Generate your TDS Certificate Click Here

Be caution While applying PAN Card (Form 49A).

While applying PAN Card (Form 49A) to Income Tax Department for New PAN Card or Duplicate PAN Card, some important points are remember regarding applying PAN application. They are followings:

What you dos ?
  • Do use ' Form 49A' for making application for allotment of PAN.
  • Do fill the application in block letters in English and preferably with black ink.
  • Do paste a recent colour photograph (size 3.5 cm X 2.5 cm).
  • Do provide the signature within the box.
  • If thumb impression is put on the application form, do get the thumb impression attested by Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.
  • Do provide correct AO code in the application.
  • Do specify AO code as below if applicant is a defence employee
Army - PNE W 55 3
Navy - MUM W 11 8
Air Force - DEL W 72 2
  • Do attach Proof of Identity (POI) and Proof of Address (POA) as per Rule 114 (4) of Income Tax Rules, 1962.• Do provide the POI and POA which have name exactly as written in the application.
  • Do provide details of Representative Assessee in column 14 of application form, if applicant is Minor, Idiot, Lunatic or Deceased.
  • Do provide POI and POA for Representative Assesse also, if Representative Assessee is appointed.
  • Do write the complete postal address in the application with landmark.
  • Do mention correct pin code in the address field.
  • Do mention telephone number / e- mail id in the application
What you don't?
  • Do not overwrite or make corrections in the application.
  • Do not pin or staple the photograph.
  • Do not sign across the box (i.e. signature should be within the box)
  • Do not provide POI and POA which are not in the name of the applicant.
  • Do not write any additional details (date, designation, rank, etc.) along with the signature in the box.
  • Do not mention Husband's name in the Father's Name column.
  • Do not abbreviate your name or do not use initials.
  • Do not apply for a new PAN if you already have one
Download PAN Application Form 49A (Click Here)

1.25% Reduced Interest Rate of Employee's Provident Fund (EPF).

There is a big loss of Interest to Public & Private Sector Employees on there Regular and Deposit Fund. EPF Interest rate was increase by 1% in the Fin. Year 2010-11 and the amount of 1% deposited as a suspense amount. During this year only for 4 months .06% interest rate is increased but at the end of year EPFO reduced the Interest Rate on Deposit and Regular Deposit Fund of Employees by 1.25%. This is big loss of Public and Private Sector Employees. Apart from this the EPFO allows to deposit invest more money by the employee except terms and conditions in securities, it is not viable for them to pay higher Interest rate.

Further Interest rate for Financial year 2011-12 has been announced when few days are left in the in the financial year and on the one day before the Union Budget 2012. On the other side RBI has not changed the interest rate ?

The reduction in interest rate on deposits in Employees' Provident Fund from 9.5 per cent to 8.25 per cent for 2011-12 affecting over 4.7 crore subscribers.

This cut was proposed by the finance ministry and a notification was issued by the labour ministry, official sources said.

The Employees' Provident Fund Organization (EPFO) had provided 9.5 per cent interest rate to its subscribers for 2010-11 after it found Rs 1,731 crore surplus in its books of account.

The labour ministry had recommended 8.6 per cent rate of interest for this fiscal on provident fund deposits to EPFO subscribers.

On 14.03.2012 FA & CAO issued a circular to all Regional provident commissioners (Download Now)

Interest rate of EPF (Click Here)

Online Annual Profession Tax e-Return.

Friends, as per Maharashtra State Tax on Professions, Traders, Calling and Employments Act, 1975, the Profession tax should be paid compulsory by the Employee of Maharashtra State as well as all the Traders, Business Men, Calling and Employments authority should also be paid Profession Tax compulsory.

Enter your Email ID at the top of Site for further Fee Updates

Old Slab of Profession Tax for Salary Persons

Sr. No.

Amount of Taxable Gross Income

Tax Amount

1

Do not exceed Rs. 2500

NIL

2

Exceed Rs. 2500 but not exceed Rs. 3500

Rs. 60

3

Exceed Rs. 3500 but not exceed Rs. 5000

Rs. 120

4

Exceed Rs. 5000 but not exceed Rs. 10000

Rs. 175

5

Exceed Rs. 10000

Rs. 200 per Month up to 11 months and at the month of February Rs. 300 i.e. Rs. 2500 Compulsory

How to Submit your eReturn of Your Profession Tax Click Here

Download here Auto eReturn File

New Slab of Profession Tax for Salary Persons

Sr. No.

Amount of Taxable Gross Income

Tax Amount

1

Do not Exceed Rs. 10000

Rs. 175

5

Exceed Rs. 10000

Rs. 200 per Month up to 11 months and at the month of February Rs. 300 i.e. Rs. 2500 Compulsory

For More Detail about Profession Tax Click Here

Procedure to file Income Tax Returns - Online.

Filing incoming tax returns is not a laborious ordeal anymore. E-filing or filing tax returns online has made the process a whole lot simpler. E-filing of tax returns acts as one of the options for the direct tax payers in India. There are three different ways of filing returns online:

1. File returns using a digital signature. By this option there is no need for a paper return to be submitted.

2. File without using the digital signature. By this option the ITR-V form has to be filled. This form is a one-page receipt but also serves as a verification form.

3. Take help from an E-filing intermediary who makes the filing returns and filling the ITR-V form a whole lot easier.

Details required before logging in to the site

You will need an account with a bank that has net-banking facility. The bank must be one that has e-payments. If you are a first time user, i.e if you have never e-filed your returns you will need to register with this website www.incometaxindiaefiling.gov.in and create a user name and password. You will need your PAN card number for the same. Your address details are extracted from the PAN. You must enter other personal details carefully. The email address is important as all communication regarding this will be through the email address you provide. Once you have registered, an e-mail will be sent to you confirming registration after you activate your account. Once this is done, you are ready to file your income returns online. You must now download the appropriate ITR form.

Steps to file Income Tax Return online

* Log into www.incometaxindiaefiling.gov.in and create a username and password.
* Go through all the heads of income under which you will be taxed and select the relevant Income Tax Return.
* Download the Return Preparation software and fill in the details of your ITR. The Income Tax India website also provides an instruction sheet on how to fill the ITR form.
* If there is any tax to be paid then make an online payment and generate the challan counterfoil along with the CIN. Now complete the Income Tax Return form with the details from the challan and CIN along with the payment details and the details of the bank through which the e-payment has been made.
* After this generate an XML file from the filled return using the software downloaded earlier. An XML is a format that helps the IT Department enter the details into its database.
* Now select the appropriate form on the left side of the page and click ‘Submit return’. Select the XML file and click ‘Upload’. Once the uploading is successful it will be acknowledged on the screen.
* Click on ‘Print ’ to get a copy of the ITR-V form.

If the return has a digital signature then the filing process is complete upon the acknowledgement notification and the print out is required only to keep a personal copy. But if it does not have a digital signature then the ITR-V form needs to be printed out by the tax payer. As mentioned earlier, this is an acknowledgment as well as a verification form and all the details need to be filled in and verified. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be mailed to “Income Tax Department – CPC, Post Bag No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka,”BY ORDINARY POST OR SPEEDPOST ONLYwithin 120 days after the date of transmitting the data electronically.

Benefits of e-filing over paper filing

One of the foremost benefits of e-filing is the flexibility of filing your returns anywhere / anytime with access to the internet. Online tax returns are processed much faster than paper returns and the tax is worked out automatically as the payee completes the form. With this the payee also gets the acknowledgment slip immediately. Also online filing is a safe and secure mode.

Deadlines for filing returns

The last date to file your returns is July 31, 2011. For those who need to get their account books audited under the Income Tax Act, the last day is October 1, 2011.