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Last Date for Income Tax Return (e-Filing) submission is 30th September, 2012

As we know the ITR e-filing date is 30th September 2012 for Assessment Year 2012-13.  At the Eleventh Hour Taxpayers rush at Income Tax Office and website and thus the Taxpayee will have to face the problem regarding e-filing of Income Tax Return for Assessment Year 2012-13.  Due to this reason the CBDT has been issued order to open receipt counters on 29th and 30th September 2012.

In accordance with this, CBDT already been lanched ITR Utilities to make Income Tax Return and submit online with all facility.  Keeping in view of problem the users may downlod the ITR Utility for Assessment Year 2012-13 by the following link.

Free Download ITR Preparation Software for Assessment Year 2012-13 (Click Here)
To Calculate your TDS Deducation for Assessment Year 2013-14 (Click Here)

The CBDT has decided that the Income Tax Offices all over India shall make special arrangments by opening of receipt counters on 29th and 30th September, 2012 being Saturday and Sunday respectively for the convenience of Taxpayers.

The Board Order To View (Click Here)

On Railway Fare of AC & First Class Service Tax be charged w.e.f. 01.10.2012

Now traveling by Train in AC and First Class coach is going to more expensive from 01.10.2012 due to Service Tax Department levied Service Tax on fare of AC and First Class.  Due to this decision of Service Tax Department railway fare increases around 3.6% from 01.10.2012.  

LEVY OF SERVICE TAX ON RAILWAY PASSENGERS TRAVELLING IN AC CLASS/FIRST CLASS FROM 1stOCTOBER 2012
PRESS RELEASE, DATED 27-9-2012

In compliance of the provisions contained in Finance Bill 2012 and subsequent notifications issued by Ministry of Finance, the Service Tax in case of railway travel, which was exempted upto 30th September 2012, will be levied on the fare of passenger services in the following classes from 1st October 2012.

(i)    AC First Class,
(ii)   Executive Class,
(iii)  AC-2 tier Class,
(iv)   AC-3 tier class,
(v)    AC Chair Car class,
(vi)   AC Economy class and
(vii)  First Class.

Since an abatement of 70% has been permitted on passenger services by Ministry of Finance, the Service Tax will be charged on 30% of total fare including reservation charge, development charge, superfast surcharge which would be calculated as follows:-

(i)   Service Tax of 12% will be charged on 30% of fare (equivalent to 3.6% on the total fare)
(ii)  Education Cess of 2% on Service Tax will be added (equivalent to 0.072% on total fare) and
(iii) Higher Education Cess of 1% on Service Tax will also be added (equivalent to 0.036% on total fare)
(iv)  Total Service Tax implication will be (i)+(ii)+(iii)=3.708% on the total fare.

On Concessional value tickets/PTO tickets etc. service charge will be levied on 30% of the total fare actually being paid by the passengers.

The Service Tax will also apply to tickets issued in advance for journeys to commence on or after date of implementation of Service tax. In the case of tickets already issued excluding service tax, the service tax on total fare including development charge, superfast surcharge, reservation fee, etc. date of implementation of Service Tax will be recovered either by TTEs in the train or by the Booking Offices before commencement of the journey by the passengers. Commercial Inspectors and TIAs have been instructed to visit all important stations and ensure that service tax is levied on tickets issued as per the revised rates. Commercial Officers have also been asked to make surprise checks at the stations and ensure that Service Charges are levied from date of implementation of Service Tax.

The amount of Service Tax collected from passenger will be deposited with the Ministry of Finance as per procedure. Finance Departments of Zonal Railways have been instructed for proper accountal and remittance of Service Tax amount to the Government.

In case of refund of passenger fare, if any, refund of Service Tax shall be claimed by the passenger from the concerned Service Tax authority. No refund shall be made by the Railways on this account. For the purpose of claiming refund, Chief Commercial Manager (CCM) office of concerned Zonal Railway shall issue a certificate to passenger detailing the amount of refunds to be signed by an Officer authorized by CCM, which shall be countersigned by the Dy. Chief Account Officer (DCAO) or officer authorized by them for this purpose.

TDS Calculator Free Download for Asstt. Year 2013-14 with latest updates.


It is general demand that how to calculate TDS for deduction monthly from Salary. It is very difficult to project deduction of TDS in every month. Due to this difficulties "Gsoftnet" Develops TDS Calculator for Assessment Year 2013-14 and month-wise statement with latest updated new features of Financial Year 2012-13. In the Fin. Year 2012-13 D.A. & other Allowance may changes some employee got benefit of High Scale Pay Fixation or Promotions or Deputation Allowance. Keeping in view of this TDS Calculator develops. It is a simple and most useful TDS Deductions Calculator for Assessment Year 2013-14 Excel Utility (software) with Free Download Facility. This software calculate TDS Deductions monthly for A.Y. 2013-14 with all qualifying Deductions and other eligible Deductions.

Software Key Features:
  • Calculate Gross Income as per current D.A. Rates
  • Calculate Gross TDS Tax Liability
  • Display Monthwise Salary Statement
  • Divide TDS Liability Monthly from Sep-2012
How to Use this Calculator?
  • Enter Data only in "White" Field.
  • Press Button to Calculate Tax Liability
  • View Monthly Salary Statement.
Picture of Calculator.

Click Here to Download TDS Calculator

Free Download e-TDS/TCS retun preparation Utility (RPU) Ver. 3.1

Free e-TDS/TCS Return Preparation Utility(RPU) ver. 3.1 has released by TIN NSDL.  This (RPU) Return Preparation Utility is used to prepare Regular Quarterly Statements for e-TDS/TCS. This updated e-TDS/TCS RPU (version 3.1) is used to make Quarterly Return statements from FY 2005-06 onwards.

Key features of NSDL Return Preparation Utility (RPU) version 3.1

Incorporation of File Validation Utility (FVU) as below:
FVU version
Remarks
3.6
Applicable from FY 2010-11 onwards.
2.133
Applicable upto FY 2009-10.

Aforementioned FVU version will be mandatory w.e.f October 16, 2012.

Import of challan file (.csi file): Import of challan file downloaded from the TIN website (Challan Status Inquiry) has been made mandatory at the time of validating the quarterly TDS/TCS statement, if the TDS/TCS is deposited through challan. This will be applicable in case of regular statement and for correction statement in the scenarios as below:
  • Update of challan (C2 correction).
  • Deductee/ Collectee and corresponding challan is updated (C3 correction).
  • Addition of challan (C9 Correction).
Incorporation of sections codes in quarterly TDS/TCS statements as below:
Section code
Section code to be quoted in Quarterly TDS/TCS Statement
Applicable to TDS/TCS statement Form No.
Remarks
194LB
4LB
27Q
Applicable from FY 2011-12 onwards
194LC
4LC
27Q
Applicable from FY 2012-13 onwards
206CJ
J
27EQ
Applicable from FY 2012-13 onwards
206CK
K
27EQ
Applicable from FY 2012-13 onwards

Separate flag “O” has been incorporated for reporting salary details of “Super senior citizen” (individual above the age of 80 years) at Form no. 24Q. This categorization is applicable from FY 2011-12 onwards.

Separate flag “S” for categorizing software vendor transaction (as per ITD notification dated 21/2012) in Non salary TDS statements (Form 26Q – Section code 194J and 27Q –Section code 195). This categorization is applicable from FY 2012-13 onwards.

Free Download e-TDS/TCS RPU Ver. 3.1 (Click Here)

Income Tax and Tax Relief on Salary and Salary Arrears.

When arrears of salary pertaining earlier years are received by Taxpayee (Employee) in one year.  The the Taxpayee want relief u/s. 89(1). In accordance of Tax Relief u/s. 89(1) it must to furnish 10E by Taxpayee (Employee).  In this regard some quries and questions are as under:

Q1. When arrears of salary pertaining earlier years are received in one year, what is the relief available to the assessee?
Ans :    The arrears of salary are to be taxed in the year of receipt along with the regular salary. However, the employee will be entitled to certain relief under section 89(1) as computed in accordance with Rule 21A.

Q2. Can the employer take into account the relief admissible under section 89(1) while deducting tax at source from salary?
Ans :    Yes, in respect of Govt. servants or employees in a company, co-operative society, local authority, university, institution, associations or body, the employer may take into account the relief admissible under section 89(1) provided the employee furnishes the particulars in form No.10E to the employer.

Q3. If an employee has also income from other sources apart from salary, can the employer take these into account while deducting tax from salary?
Ans :    Yes, if the employee furnishes the required particulars in form No.12C to the employer. This is subject to the condition that the income under any of the other heads except 'Income from House Property' is not a loss. If the employee has incurred a loss under the head 'Income from House Property', he may furnish details thereof to the employer in form No.12C and the employer may then take into account the said loss while deducting tax from salary.

Q4. Is pension treated as salary ?
Ans :    Yes, pension is also treated as salary and is accordingly entitled to the standard deduction.

Q5. Is family pension also treated as salary?
Ans :    No. As there is no employer-employee relationship between the recipient of the family pension and the payer, family pension is not salary. It is taxed under the head 'Income from Other Sources'. In respect of family pension received from the employer by a person belonging to the family of the employee in the event of the employee's death, a standard deduction of 1/3rd of the family pension or Rs.15,000 whichever is less is allowed as a deduction.

7% DA increased w.e.f 01.07.2012 to Central Government Employees.

Today on 24th Sep. 2012 at evening the Cabinet has approved 7% Dearness allowance w.e.f. 01.07.2012 for Central Government Employees and Central Government Pensioners.  Thus the current dearness allowance is 72% from 01.07.2012.  Before this the Central Government increases Dearness allowance from 58% to 65% w.e.f. 01.01.2012.  As the same effected Dearness Allowance is applicable to all Central Government Employees and Ex-Employees or Pensioner from 01.07.2012.  The Cash payment of DA of 7% be applicable in the month of Oct-2013 and arrears of DA from Jul-12 to Sep-12 will be paid to the Central Government Employees or Ex-Employees (Pensioners) soon.

PAN Application Free Download (Excel Format).

Through Internet:
An application for new PAN can be made through Internet. After applying once requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through Internet. Online application should be made by NSDL (https://tin.tin.nsdl.com/ pan/index.html) or UTIITSL (http://www.utiitsl.com/ utitsl/uti/newapp/new-pan-application jsp).

Plain Paper:
Another way to submit PAN application on plain paper in format Form 49A (for Indian citizens, Indian Companies, Entities incorporated in India and unincorporated entities formed in India) and Form 49AA (for individuals not being a citizen of India, entities incorporated outside India and unincorporated entities formed outside India). A PAN application (Form 49A/49AA) can be downloaded from the official website of Income Tax Department.

Download Form 49A, 49AA (PAN and TAN application) in Excel Format (Click Here)

Contact Information Chart regarding PAN Application


Status
Income-tax Department
NSDL
UTIITSL
Website
Phone
0124-2438000
020-27218080
022-67931300
Email ID

utiitsl.gsd@utiitsl. com
SMS

SMS

NSDLPAN Acknowledgement No.   &   send   to 57575   to   obtain application   status.
Address

Income  Tax   PAN Services        Unit (Managed  by  Na­tional  Securities Depository   Lim­ited),   3'd   Floor, Sapphire   Cham­bers, Near Baner Telephone      Ex­change,      Baner, Pune - 411045
IT PAN Service Centres (managed by UTIITSL) PB no 20, Plot No 3, Sec-tor-11, CBD Belapur, Navi Mumbai 400614

Rajiv Gandhi Equity Saving Scheme for Retail Investors

The Union Finance Minister Mr. P. Chitambaram has approved a new tax saving scheme called as “Rajiv Gandhi Equity Saving Scheme“(RGESS), exclusively for the first time retail investors in securities market.  This scheme is basically a income tax saving scheme for the assessee whose income is less than 10 lakh rupees and the tax benefit can be up to 50000 rupees. The full press release as under:

PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
FM APPROVES RAJIV GANDHI EQUITY SAVINGS SCHEME FOR RETAIL INVESTORS
New Delhi, Bharapada 30, 1934
September 21, 2012

The  Union  Finance Minister, Shri. P. Chidambaram approved a new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS), exclusively for the first time retail investors in securities market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh.

The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets,but also aims to promote an ‘equity culture’ in India.  This is also expected to widen the retail investor base in the Indian securities markets. Salient features of the Scheme are as under:

1. Scheme is open to new retail investors, identified on the basis of their PAN numbers. This includes those who have opened the Demat account but have not made any transaction in equity and /or in derivatives till the date of notification of this Scheme and all those account holders other than the first account holder who wish to open a fresh account.

2. Those investors whose annual taxable income is ≤ Rs. 10 lakhs are eligible under the Scheme.

3. The maximum Investment permissible under the  Scheme is Rs. 50,000  and the investor would get  a 50% deduction of the amount invested from the taxable income for that year.

4 Under the Scheme, those stocks listed under the BSE 100 or CNX 100, or those of public sector undertakings which are Navratnas, Maharatnas and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the above companies would also be eligible under the  Scheme. IPOs of PSUs, which are getting listed in the relevant financial year and whose annual turnover is not less than Rs. 4000 cr for each of the immediate past three years, would also be eligible.

5 In addition, considering the requests from various stakeholders, Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible securities as their underlying and are listed and traded in the stock exchanges and settled through a depository mechanism have also been brought under RGESS.

6 To benefit the small investors, the investments are allowed to be made in instalments in the year in which tax claims are made.

7. The total lock-in period for investments under the Scheme would be three years including an initial blanket lock-in period of one year, commencing from the date of last purchase of securities under RGESS.

8 After the first year, investors would be allowed to  trade in the securities in furtherance of the goal of promoting an equity culture and as a provision to protect them from adverse market movements or stock specific risks as well as to give them avenues to realize profits.

9 Investors would, however, be required to maintain their level of investment during these two years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year. The calculation of 270 days includes those days pursuant to the day on which the market value of the residual shares /units has automatically touched the stipulated value after the date of debit.

10 The general principle under which trading is allowed is that whatever is the value of stocks / units sold by the investor from the RGESS portfolio, RGESS compliant  securities  of at least the same value  are credited back into the account subsequently. However, the investor is allowed to take benefits of the appreciation of his RGESS portfolio, provided its value, as on the previous day of trading, remains above the investment for which they have claimed income tax benefit.

11 For the purpose of valuation of shares, the closing price as on the previous day of the date of trading will be considered so that new investors are certain about their debits and credits into the account.

12 In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn.

Like all financial products which have reached out substantially to the retail investors (post office savings, life insurance policies  etc) through tax benefits, this tax break for direct investment in equity is expected to substantially encourage the retail participation in securities market as well as to enhance their participation in the growth of Indian industry. Entry of more retail investors are expected to further deepen the securities markets as they bring in long-term stable funds, which can counteract the volatility created by the liquidity providers of the market. The  Scheme, thus, also  furthers the goal of financial stability and promotes financial inclusion. Since Exchange Traded Funds and Mutual Funds have also been brought under the Scheme, the Scheme should provide encouragement and re-assurance to the first time investors.

The broad provisions of the  Scheme and the income tax benefits under it have  already  been incorporated as a new Section -80CCG- of the Income Tax Act, 1961, as amended by the Finance Act, 2012.

Department of Revenue  will  notify the Scheme  and SEBI will  issue the relevant circulars to operationalize the Scheme in the next two weeks.