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Due Date Extended upto 5th August,2013 of filing of Return for Asstt. Year 2013-14

The Central Board of Direct Tax, in exercise of powers conferred under section 119 of the Income Tax Act, 1961, hereby extends the due-date' for filing Returns of Income from 31st July, 2013 to 5th August, 2013 for Asstt. Year 2013-14.

This is the big relief of 5 days to the assessee/taxpayers as there is a big rush for filing income tax return at Income tax department.

There is an unprecedented surge in number of returns being e-filed during this year. Approximate 1.01 crors returns have been filed/e-filed upto 31st July, 2013 which is 47.20% higher than the returns e-filied during the corresponding period of the last fiscal year.  If the extension is to be made, it should be earlier as it can give big relief to the assessee who need to file income tax return.

However, no reason is given for extension but it is a big relief anyway.

Download Extended Notification (Click Here)

Special counters for filing returns of Income from 31st July,2013 to 5th August,2013

In view of extension of due date for filing of return of Income, special arrangements has been made for accepting the returns of income from 01.08.2013 to 05.08.2013 (including 3rd and 4th August, being Saturday and Sunday, respectively) to facilitate the tax payers to file their returns.
 

Free Download New ITR-1 and Form-16 for Salaried Employee For Asstt. Year 2013-14

Now a days we are searching Tax & TDS Software on net for easy submission of Income Tax return for Asstt. Year 2013-14.  But there is too difficult to go with them.  Therefore we develops  New ITR-1 (Sahaj) and Form-16 Excel Base Software as per amended rules and circulars issued by Income Tax Department on 17.04.13.  ITR-1 (Sahaj) is Developed by Shri Pranab Banerjee, Accountant and Tax Consultant.  Form-16 and New ITR-1 both are made for specially Salaried Employee for Asstt. Year 2013-14 and fully free downloadable.

Form-16 software calculates Income Tax, Create Month-wise Salary Statement and Form 16 with Annexure "A" and "B" in new format and ITR-1 (Sahaj) creates Income Tax Return for Asstt. Year 2013-14 with all eligible deductions under Chapter-VIA Deductions including other applicable Deduction i.e. House Loan Interest, HRA Exemption, Income from Other Source etc. After enter Deduction of Chapter-VIA and other applicable Deductions i.e. u/s. 80G, 80E, 80D as well as u/s. 89(i) it Calculate accurate Income Tax and surcharge there on.  It suggest to Salaried Employee (Taxpayee) whether he is Tax-payable or Refundable.

Physical Requirements:
  • OS required Windows-2000, XP, Vista, Windows-7, Windows-8 etc.
  • Min. MS Office-7 or Above Version
  • Printing Facility Provides on Inkjet or Ledger Printer
  • Required Standard A4 Size Paper Sheets.
Data Entry:
  • Only  "Yellow" Cells are provide for input data for Form 16 & "White" cells for ITR-1 (Sahaj)
  • Press Mouse Buttons for operation which you like
Key Features:
  • It maintain Each Employee Data.
  • It Calculate Gross Income as per current D.A. Rates automatically as per Government D.A. Rates.
  • It Provides Facility to Enter Data Manually along with all Arrears etc.
  • It Calculate Tax Liability.
  • It Display Monthwise Salary Statement for Asstt. Year 2013-14.
  • It Generate TDS Certificate (Form 16) Automatically with Annexure "B" & ITR-1 (Sahaj) for Annual Income Tax Return.
Register and Downloads Free (Click Here)


Recover Password Procedure for e-filing Income Tax Return.

It is known by everyone that new website has already been launched for e-filing of Income Tax Returns.  In the last financial year 2011-12, only assessee having income 10 Lakh or more than 10 lakh are bounded to submit online return. But not from the financial year 2012-13, the limit of income  has been decreased from 10 lakh to 5 lakh.  It means that Now e-filing of income tax return is mandatory for those persons who have income 5 lakh or more than 5 lakh.   In this way,  Data punching of Assessee data is in the hand of Assessee.

Now, it is a great problem that in a year User id and Password for e-filing of income tax return were generated but now forget at the time of submission of income tax return.   Below are the solutions for recovery  of password:
Answer Secret Question :

In case you have remember answer of hint  question which have been filed by you at the time of registration.

Upload Digital Signature :
It is chargeable to by digital signature.

Enter e-filed Acknowledgement Number and Bank Account Number :
Copy to last online  submitted Income Tax ITR-V is required for getting acknowledgement number along with your bank account number entered in your last income tax return available with income tax department for confirmation.

Toll Free Number :
Toll Free Number to resolve this issue is 1800 4250 0025.

Email Addreess:
If you're not able to reset the password with any of the above options, please send an email to  - validate@incometaxindia.gov.in with the following details.

    Pan
    Pan Holder's Name
    Date of Birth / Date of Incorporation
    Father's Name
    Registered PAN address

Source: www.tdstaxindia.com

Apply 10 Easy steps to File Your Income Tax Return for quick refund online.

The last date for filing tax return for financial year 2012-13 for individuals is 31 July 2013. Individuals earning above Rs 5 lakh are now required to file their tax returns electronically. Last year this limit was Rs 10 lakh.

Here is a quick 10 steps guide to file your tax return.

Step 1: Create your e-filing account
In order to create an e-filing account, you should visit the Income Tax website https://incometaxindiaefiling.gov.in and click on ‘Register Yourself’ which will prompt you to fill your personal details. Once your e-filing account is created, login to your account with your user ID (ie PAN) and password.
Step 2: Download Form 26AS
Click on the ‘View Form 26AS (Tax Credit)’ link displayed under the Quick Link menu on the left hand side of the screen to generate Form 26AS. Form 26AS is a consolidated tax statement issued to a tax payer which summarizes the amount paid against each PAN number. It summarizes the TDS, Advance tax, Self assessment tax paid in your name. The password to open your Form 26AS is your date of birth in ddmmyyyy format.
Step 3: Download the income tax return form
Click on the ‘Download ITR’ link which is also displayed under the Quick Link menu on the left hand side of the screen. Thereafter download the income tax return form. ITR 1 should be downloaded by individuals earning salary income / pension; or individuals having one house property income; or individuals having income from other sources (excluding lottery income and income from race horses). However, in case of an individual having income from more than one house property, capital gains or is an ordinary resident having assets abroad or claiming tax treaty benefit, then ITR-2 should be downloaded. After downloading the income tax return form, a zip file will be saved on your computer.
Step 4: Fill the details in the Tax return form
Extract the excel form utility from the downloaded zip file and enable the macros in the Excel form. Carefully follow the instructions and fill the following details:
  • Mention the basic details which include your name, PAN, complete address, date of birth, e-mail ID, mobile number, whether the return is original or revised, and residential status.
  • Fill the details of income earned and deductions claimed under Chapter VI-A. You can refer to your Form 16 and Form 26AS. However, you will also be required to report any other income or investment eligible for deduction which was not reported to your employer.
  • Enter the details of tax deducted by the employer and other deductors and self-assessment / advance tax paid, if any.
  • Enter your bank details, which include your bank account number, preferred mode of receiving any refund amount (ie by cheque or direct deposit), type of bank account and IFSC code.
Step 5: Validate the details
Click on the ‘Validate’ button provided on all the sheets. This ensures that all the details have been captured in the return. In the case you omit anything; the sheet will automatically prompt you to fill in the missing details.

Step 6: Calculate your tax liability
Click on ‘Calculate Tax’ after you have filled all the details. In case the return form shows any tax payable, then you should deposit the amount and enter the challan details in the return form.

Step 7: Generate the XML file
Once all taxes have been paid, click on the ‘Generate XML’ tab and save the xml generated file on your computer.

Step 8: Submit the income tax return
You should go to your e-filing account on the income tax website and click on ‘Upload Return’. Fill the ITR Form, Name, Assessment Year. Thereafter upload the XML file and click on ‘Submit’. After this an ITR-V will be generated and sent to your e-mail ID mentioned in the tax return. ITR-V is an acknowledgement-cum-verification form.

Step 9: Send the signed ITR-V to the Income Tax Department
You should take a print of ITR-V and sign it in blue ink. Therafter you should send it by ordinary post or speed post to ‘Income Tax Department – CPC, Post Bag No – 1, Electronic City Post Office, Bengaluru – 560100. The signed ITR-V should be sent within 120 days of uploading the return.

Step 10: Check the ITR-V receipt status
On receipt of the signed ITR-V, the Income Tax Department will send an e-mail acknowledging the receipt of ITR-V to the e-mail ID mentioned in the tax return. You will also receive an SMS on your mobile number acknowledging the receipt of tax return.

Source: www.firstpost.com By Vineet Agarwal

e-Filing Income Tax Return Online, ITR, pre-fill & more.

To file an Income Tax Return electronically, you should download the Income Tax Return (ITR) Utility applicable, fill and generate an XML. This XML should be uploaded in the application post LOGIN.  You can also pre-fill Personal and Tax information, a new feature in this application.

You can import the details of the previous version into the new version of the utility using the "Import Previous Version " facility. Click on the "Import Previous Version" button and select the path where the previous version is available and click OK. The data is uploaded successfully.

e-File Income Tax Return Online
Income Tax Return (ITR-1/ITR-4S) is available online. To avail this feature, Assessee should register, LOGIN and GO TO 'e-File' --> 'Prepare and Submit ITR online'. Fill the information and click SUBMIT.

Steps to Download ITR
  • On home page, GO TO 'Downloads' section and select applicable Income Tax Return Form of the desired Assessment Year OR Login to e-Filing application and GO TO 'Downloads'-->'Income Tax Return Forms' and select applicable Income Tax Return Form of the desired Assessment Year.
  • Download the excel utility of the Income Tax Return (ITR).
  • Fill the excel utility and Validate. (Please refer the "Steps to pre-fill in Income Tax Return" as mentioned below)
  • Generate an XML file and save in desired path/destination in your desktop/system.
  • LOGIN to e-Filing application and GO TO --> e-File --> Upload Return.
  • Select the Income Tax Return Form and the Assessment Year.
  • Browse and Select the XML file
  • Upload Digital Signature Certificate, if available and applicable.
  • Click 'SUBMIT'.
  • On successful upload, Acknowledgement details would be displayed. Click the link to view or generate a printout of Acknowledgement/ITR-V Form.
Steps to pre-fill in Income Tax Return
  • LOGIN to e-Filing application and GO TO 'Downloads' --> 'Income Tax Return Forms'
  • Download the excel utility of the selected Income Tax Return.
  • GO TO 'Downloads' --> 'Download Pre-fill XML' and download.
  • Open the excel utility.
  • Click the button 'Import Personal/Tax Details from XML'. An option to BROWSE a file is displayed.
  • Click on 'BROWSE' and select the path where the downloaded Pre-Fill XML file is stored.
  • Click the SUBMIT button
  • The Personal and Tax information is pre-filled in the respective fields of the excel utility (ITR). You can edit the Tax information, if needed.

Note:
  1. You can upload the returns after you have registered in e-Filing.
  2. To e-File using Digital Signature Certificate (DSC), the DSC should be registered in the application. (To register DSC, you should LOGIN and GO TO --> Profile Settings --> Register Digital Signature Certificate)
  3. If the Income Tax Return is uploaded with DSC (digitally signed), on generation of "Acknowledgement" the Return Filing process is complete. The return will be further processed and the Assessee will be notified accordingly. Please check your emails on these notifications
a. If the return is not uploaded with a DSC (digitally signed), on successful upload of e-Return, an ITR-V Form will be generated. This is an Acknowledgement cum Verification form. A duly verified ITR-V form should be signed and submitted to CPC, Bangalore (address will be displayed) by Ordinary Post or Speed Post ONLY, within 120 days from the date of e-Filing.
 b. On receipt of the ITR-V at CPC, the return will be further processed and the Assessee will be notified accordingly. Please check your emails on these notifications
  1. Macros should be enabled in the excel. Below are the steps to enable Macros
  2. For Excel 2003 users: Click on TOOLS menu and select -> OPTIONS- > SECURITY -> Macro Security must be set to Medium or Low.
  3. For Excel 2007 and Excel 2010 users: Click on the OFFICE button on the top left corner of the application and click ->EXCEL OPTIONS -> TRUST CENTER > Trust Center Settings button -> Select Macro Settings and click on any radio button other than "Disable All Macros Without Notification"

Download Ver. 1.3L and complete procedure to download Form 16. for Asstt. Year 2013-14.

Income Tax Department advised to All Deductors  to download PDF Converter Utility V1.3L. This a new version to convert Form 16/16A. The TDS Deductor/Deductee can download TDS Certificate (Form 16 (Part A) and Form 16A) from TRACES. The file will be provided in text format and will contain certificate details for all requested PANs. Text file is password protected and password will be send.

A certificate is prescribed u/s 203, which is to be issued by person deducting tax at source.  The certificate should specify the amount of tax deducted and rate at which it is deducted (Form No. 16A, under Rule 31) and other particulars prescribed. A new form 16A has been introduced w.e.f. from 1/4/2010 vide Income-tax (6th Amendment) Rule, 2010(Pl. Ref. Annexure – 4). The new Rule 31 introduced vide I.T. (6th Amendment) Rules provides the following with respect to certificate of deduction of tax.

Deductor will have to convert the text file into PDF using TRACES PDF Generation Utility. This utility will convert the text file into individual PDFs for each PAN. The same utility can be used to convert text file for Form 16 / 16A.

Download Version (V1.3L)

For e-Tutorial Click Here

Procedure to Download Form No. 16 :

Select from Menu:
  • Go to webside https://www.tdscpc.gov.in/
  • Login to TRACES as a deductor by entering User Id and Password and clicking on ‘Go’.
  • Landing page will be displayed.
  • Under ‘Downloads’, click on ‘Form 16’ to place download request.
  • Form 16 can be downloaded from FY 2007-08 onwards
  • For a given FY, TAN and PAN, there will be only one Form 16. In case of more than one employer, a PAN holder can have those many Form 16s
Enter Search Criteria
  • For individual PANs, select Financial Year for which Form 16 is required and enter PAN and click on ‘Add’
  • Valid PANs will be added to the list. Select a PAN and click on ‘Remove’ to remove it from the list.
  • Click on ‘Go’ to proceed with download request
  • For downloading Form 16 for all PANs , select Financial Year for which Form 16 is required and click on ‘Go’
Token Number Details (Contd.)
  • Enter Authentication Code if the validation is done earlier and you have the Authentication Code
  • Enter Token Number of only Regular (Original) Statement corresponding to the Financial Year, Quarter and Form Type displayed above
  • Tick in Check Box for NIL Challan or Book Adjustment (Government Deductor)
  • Government deductors not having BIN details tick here and need not need provide BSR and Challan Serial Number below
  • Click on Guide to select suitable Challan option
  • Enter CIN details for a challan used in the statement
  • Tick here if you do not any Valid PAN corresponding to above Challan details
  • Click on Guide to select suitable PAN amount Combinations
  • PANs entered must be those for which payment has been done using the CIN / BIN entered on this screen
Details to be printed on Form 16
  • This information will be printed on Form 16 for each PAN. Details will be populated from your profile information in TRACES
  • Click on ‘Submit’ to submit download request for Form 16
  • Click on ‘Cancel’ and go to ‘Profile’ section to update details
Download File
  • Click on ‘Requested Downloads’ under ‘Downloads’ menu to download Form 16 text file
Search File to Download
  • Enter Request Number (Search Option 1) or Request Date (Search Option 2) to search for the download request submitted for Form 16
  • Click on ‘View All’ to view all download requests
  • Click here if you are facing difficulty in PDF Generation Utility
Search Results
  • Click on a row to select it
  • Click on the buttons to download file
Convert .ZIP File into PDF or Click Here
  • ZIP file downloaded from TRACES will contain Form 16 details for all requested PANs
  • Download ‘TRACES PDF Generation Utility’ from the website and install it on your desktop
  • Pass the ZIP file through the utility to convert it into individual PDF files for each PAN
  • User can opt to digitally sign the Form 16s during conversion
  • Deductor can also opt to manually sign the PDF files after printing
e-Tutorial to Download Form No. 16 (Salaried Employee) Click Here

E.P.F. Account transfer online w.e.f. 15th August

Employee’s provident fund organization (EPFO) announced Independence gift to Indians as online transfer of Provident fund account on changing jobs will start on 15 August. This facility will benefit around 13 lakh subscribers in India.

Earlier EPFO has started taking digital signatures of the employer as it will be a vital for system for online transfer. The department hopes a good response from the employer providing digital signatures as the success of online transfer of accounts depends on it.  The department wants to launch the service of online transfer of PF account on 15 august the day of independence.

Digital signatures are used quite often in other sources like in income tax return as well as in big companies, on cheques as well. So there is no harm providing to EPFO as it will make transferring provident fund account really fast and easy.

Once the service is launched, subscribers would be able to apply online for transfer claims through their employers. It has set up a central clearance house for the purpose.

During 2012-13, 107.62 lakh claims were settled, of which 88 per cent were processed within 30 days, as prescribed by the body's citizen charter.

EPFO expects 1.2 crore claims in 2013-14, including around 13 lakh PF transfer claims. It plans online settlements of about 10 lakh transfer claims of tech-savy applicants from industries such as IT, this fiscal.

No Penalty on Late Filing of Income Tax Return For Asstt. Year 2013-14.

Rush hour in the month of July because 31st July is the last date to file income Tax Return for Asstt. Year 2013-14 and after the declaration of Income Tax Department that the salaried Employee whose income less than Rs. 5 Lakh is compulsory to file Income Tax as well as whose income exceed Rs. 5 Lakhs they are file income Tax Return by e-filing procedure.

Normally Taxpayee believe (specially Salaried Employee) that after due date of filing of income tax return i.e. 31st July, 2013 Income Tax Department charged more penalty and interest and other consequences i.e. notices and compliance etc.  Salaried Employee (Assessee) did not want to face all these circumstances, hence they rush to Tax consultant.

Do you know what are the penalties, if not filed the Income Tax Return in due date i.e. on or before 31st July, 2013.

Any idea .........

No ........ Don't worry, we will tell you, there is no any sigle pie penalty on such fault, absolutely no penalty, do you believe, we have said that there is no penalty on late filing of return as such.But this is the fact .Specific penalty for late filing of return is prescribed u/s 271F which is clarified as under:

“If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees"

Impact of Late filing of Income Tax Return:

Due to late filing of Income Tax Return may effect on Interest u/s 234A, Loss of Interest on Retund, Audit Report and Revised Return etc. Therefore, taxpayee request you to avoid all impact of late filing of Income Tax Return for Assessment year 2012-13

Interest u/s 234A:
If there is tax due after deducting advance tax ,TDS and self assessment tax than interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C.Means this interest is applicable only if there is any tax payable in your return .(INTEREST calculator 234BC online is available here)

Loss of Interest on refund:
You may loose interest on refund u/s 244A as delay in filing is attributable to assessee for the period by which you have filed late return.

Audit Report:
Person who are liable to get their accounts audited should get the audit report on or before the due date of filing return i.e 30.09.2012.Audit repot is only to be prepared and not to be filed any where.In simple word or boldly we can say that if audit report has been signed before 30.09.2011 that is enough,you can file return late and report particulars will be filled when ever you filed your income tax return.This is as income tax circular no 5/2007 point no 6 (read full circular)

Revised return :
Late /belated return can not be revised .This is major draw back .if you failed to file return in time then you can revise your income tax return. Though you may apply revision u/s154 which is lenghty process 
  • Some of deduction under subsection 80 are not available for late return.
  • Due date of income tax return is related to TDS deposite and disallowance u/s 40a(ia).
  • Due date of Income Tax return is related to tax saving u/s 54,54B,54F and some other issues in capital gain saving account deposit scheme.
  • Not able to carry forward the losses under various heads:you are not able to carry forward following type of losses if file return after due date

Salary Income Upto Rs. 500000/- needs to file Income Tax Return for Asstt. Year 2013-14.

Salaried persons having assessable income upto Rs. 500000/- annually will have to file Income Tax Return for Asstt. Year 2013-14, Central Board of Direct Taxes said in a statement on Monday.

Salaried employee having total taxable income upto Rs. 5 Lakhs plus interest income as other source of Income upto Rs. 10000/- annually had exempted to file Income Tax Return for Asstt. Year 2011-12 and 2012-13 by the CBDT.

"The exemption was available only for the assessment years 2011-12 and 2012-13...the exemption provided during the last two years is not being extended for assessment year 2013-14," the CBDT said in a statement.

Earlier in May, the CBDT had made E-filing of income tax return compulsory for assessment year 2013-14 for persons having total assessable income exceeding Rs. 5 lakh.

The CBDT said the exemption was given considering paper filing of returns and their processing through manual entry on system.

It said the exemption has been not been extended as the facility for online filing of returns has been made "user-friendly with the advantage of pre-filled return forms".

These e-filed forms also get electronically processed at the central processing centre in a speedy manner, it said.

"Taxpayers are encouraged to file their returns electronically. E-filing is an easy, fast and secure method of filing of income tax return. Moreover, digital signature is not mandatory for these taxpayers...," the ministry added.

Due date of Filing of Income Tax Return extends to 31 Oct, 13 for Asstt. Year 2013-14

Due date for Filing of Income Tax Return from 31st July, 2013 has extended by Income tax department vide order under section 119 of the Income Tax Act dated 23rd July, 2013 upto 31st October, 2013 for the resident or assessee assessed in state of Uttrakhand.

Considering the large-scale devastation due to recent natural calamity in the State of Uttarakhand, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income-tax Act, 1961, hereby extends the 'due-date' for filing Returns of Income required to be furnished by 31st July, 2013 to 31st October, 2013, in respect of income-tax assessees residing or assessed in the State of Uttarakhand.

Download Income Tax Department Order

Awareness regarding e-filing of Income Tax Return.

We are again at the tax filing time of the year and the due date of July 31 is just a few days away. It is mandatory for individuals to file the return electronically if the taxable income exceeds Rs 500,000. It is important to furnish the information accurately for speedy and error-free processing. As most of us tend to file the return at the last minute, there are greater chances of minor errors while filing the returns electronically. Some of the important considerations for error-free tax filings are outlined below.

To begin, select the appropriate return form, based on the streams of income. For instance, ITR-1 (Sahaj) is applicable for individuals with salary income, income from other sources and income/loss from one house property. ITR-2 is applicable if you have capital gains/loss, income from more than one house property, foreign assets, brought forward losses, exempt income of more than Rs 5,000 etc.

Furnish the personal information accurately like PAN, address, e-mail ID, mobile number, residential status, bank account details, etc. Providing accurate details like bank account information and address would ensure timely refund.

Disclosure of correct and accurate income is mandatory. The income disclosed in the total income schedule should match with the income in various schedules like salary, house property, capital gains, other sources, etc. Also, the losses should be appropriately disclosed in the respective schedules to ensure carry-forward to subsequent years.

Ensure all taxes paid/deducted at source have been properly claimed in the return. As a good practice, taxes paid should be verified with Form 26AS to avoid any future demand/short payment of refunds. Also, the details of self-assessment tax and advance tax should be reported at the appropriate place.

Disclosure of foreign assets, bank accounts and foreign trusts are mandatory for individuals qualifying as Resident and Ordinarily Resident in India. Also, declare the exempt income such as dividend income, interest income exempt from tax,etc, though this is not taxable.

In addition, it is important to maintain the back-up documents like Form 16, lease agreements, bank statements or other income details which might be required if the returns are selected for scrutiny by the tax office.

The time spent before filing of a tax return is important and works like the 'Stitch in time saves nine' reminder.

Source: www.tdstaxindia.com

All ITR Forms, TDS FVU & Instructions Free Download For Asstt. Year 2013-14

Income Tax Department has started uploading ITR-1 (Sahaj), ITR-2, ITR3, ITR-4S, ITR-4, ITR-5, ITR-7 and now ITR-6 online or offline.  It has released latest Excel Base Utility for Taxpayers to submit Annual Income Tax Return for Asstt. Year 2013-14 with new amendments.  The latest amendment in Income Tax Return Forms this Excel utility is available Income tax return of All latest ITR Forms online/offline with Checklist of documents and pre-requisites.

Latest TDS FVU also available for Quarter-2 TDS Return as well as all Important Instructions for Fin. Year 2013-14 and Asstt. Year 2014-15.

Download All ITR Forms (Online/Offline) in Excel Base Utility




Checklist of documents and pre-requisites
  • A copy of last year's tax return
  • Bank Statement
  • TDS certificates
  • Savings certificates/Deductions
  • Interest statement showing interest paid to you throughout the year.
  • Balance Sheet, P&L Account Statement and other Audit Reports wherever applicable.

Grant of Family Pension and Gratuity to the eligible member of the family of any employee/pensioner

Press Information Bureau 
Government of India
Ministry of Personnel, Public Grievances & Pensions
23-July, 2013 16:55 IST
Grant of Family Pension and Gratuity to the eligible member of the family of any employee/pensioner 
Family pension is payable to the family of a Government employee or pensioner after his death. Difficulties in payment arise when a Government Servant or pensioner goes missing. Clarificatory instructions have recently been issued by the Central Government for payment of benefits in such cases. 

According to these instructions, the family must lodge a report with the concerned police station and obtain a report from the police, that the employee or pensioner or family pensioner has not been traced despite all efforts made by them. 
The report may be a First Information Report or any other report such as a Daily Diary or General Diary Entry. 
The family can apply for the grant of family pension, amount of salary due, leave encashment due and the amount of GPF and gratuity (whatever has not already been received) to the Head of Office of the organisation where the employee or pensioner had last served, six months after lodging of police report. 
The amount of salary due, leave encashment due and the amount of GPF will be paid to the family in the first instance as per the nominations made by the employee or pensioner on filling of a police report and submission of an indemnity bond. 
Detailed instructions are available at Department of Pension & Pensioners’ Welfare’s website www.persmin.nic.in. 

Special IT Return Receipt Counters for Salaried Tax Payers With Income Upto Rs. 5 Lakh

Press Information Bureau 
Government of India
Ministry of Finance 
22-July-2013 18:22 IST
Special IT Return Receipt Counters for Salaried Tax Payers With Income Upto Rs. 5 Lakh 
The CBDT has, vide notification dated 1-05-2013, made E-filing of Return compulsory for Assessment Year 2013-14 for persons having total assessable income exceeding Five lakh rupees. 
The CBDT vide its earlier notifications had exempted salaried employees having total income upto Rs. 5 lakhs including income from other sources upto Rs. 10,000/- from the requirement of filing return of income for assessment year 2011-12 and 2012-13 respectively. The exemption was available only for the assessment year 2011-12 and 2012-13. The exemption was giving considering ‘paper filing of returns’ and their ‘processing through manual entry’ on system. 

However, this year the facility for online filing of returns has been made user-friendly with the advantage of pre-filled return forms. These E-filed forms also get electronically processed at the central processing centre in a speedy manner. Hence, the exemption provided during the last two years is not being extended for assessment year 2013-14. Taxpayers are encouraged to file their returns electronically. E-filing is an easy, fast and secure method of filing of income tax return. Moreover, Digital signature is not mandatory for these taxpayers and they can transmit the data in the return electronically by downloading ITRs, or by online filing and thereafter submit the verification of the return in From ITR-V acknowledgement after signature to Central Processing Centre. The processing for E-filed returns is faster. 
From 25th July to 31st July 2013 (Except 27th and 28th July being holidays), Special Return Receipt Counters (FOR SALARIED TAX PAYERS) will operate at Pratayakshar Bhawan, Civic Centre, Minto Road, New Delhi this year. (Instead of Pragati Maidan and Mayur Bhavan as were done in the past). 
The special counters have been set up jurisdiction wise as follows: 
For CIT-XIV Charge (Govt. Salary) at ‘B’ Block, Ground Floor in Civil Centre, 
For CIV-XV Charge (PSUs/Schools/Colleges/Bank Salary) at ‘C’ Block, Ground Floor in Civic Centre, 
For CIT-XVI Charge (Private Salary) at ‘C’ Block, Ground Floor in Civil Centre, 
In addition special counters separately will function at ‘B’ and ‘C’ Block in Civic Centre for Senior Citizens and Differently abled persons. 
As Returns of Income above Rs. 5 lakhs have to be e-filed online mandatorily, the same will not be received at any of these special counters. Only paper return of income upto 5 lakhs can be filed at these counters. Other facilities like Helpdesk, Tax Return Preparers (TRPs), UTI/NSDL counters, Bank, tax payment facility, PAN facilitation counter etc. Will be also available at Civic Centre, New Delhi during the same period.

Do you Calculate TDS Liabilities for Asstt. Year 2014-15 ?

After declaration Budget and cleared the Income Tax Exemption Limit by Finance Minister for Asstt. Year 2014-15, there are many Income Tax Calculators are available on internet.  Some are available  condition of pay and some are on non-pay.  Free Income Tax calculators are calculate Tax on Taxable Income.  This Income Tax Calculator is for Salaried Employee for Assessment Year 2014-15 i.e. Financial Year 2013-14 along with Salary Statement Month-wise. All salaried Employee enjoying Dearness Allowance is 80% and from July-2013 may increase by 10%, thus I already cleared in our TDS/Income Tax Calculator. This calculator benefited you to calculator your Income Tax and Deduct the TDS Monthly from your Salary as per Income Tax Rules.

Income Tax Liability For Asstt. Year 2014-15


Download Tax Calculator For. A. Y. 2014-15  (Click Here)
Form 16 Utility (A.Y. 2013-14) Free Download (Click Here)

Taxpayee can save tax by 6 ways in Asstt. Year 2013-14.

Income tax filing due date is getting closer. However, quite a lot of tax filers are still not aware of all the deductions that could be availed of. It is always good to be updated on the latest tax deductions. It helps one in maximizing the tax deductions, hence minimizing the tax to be paid. Let us now look at some of the latest sections available for tax deduction from FY 2012-13 onwards.

Section 80CCG
Popularly known as RGESS or Rajiv Gandhi Equity Savings Scheme, this section has been introduced in order to push the in-flows into the Indian capital markets. It is also the first time that an equity investment has been allocated a section in the tax deductions page. Equity investments over 1 year are exempt from tax, though. This investment is only for the first time equity investors with income up to Rs. 12 lakh. Maximum investment allowed is Rs. 50,000 with 50 per cent deduction allowed for the invested amount.

Section 80TTA
Interest on savings bank account will now be exempt up to Rs. 10,000 in a year. However, it does not mean that income below the specified limit should not be declared. Any income generated from the savings bank account should first be declared and then the exemption can be claimed. This section applies to savings deposits in banks, co-operative societies and post office.

Section 80QQB
For authors of certain specified books, royalty income or copyright fees up to Rs. 3 lakh will be available for deduction. The books can be work of art, literature or scientific nature. The author needs to furnish a certificate in prescribed format.

Section 80RRB
Royalty income on patents will also be available for deduction up to Rs. 3 lakh. Patents should have been registered on or after 1st April, 2003 under the Patents Act, 1970 (39 of 1970). The author needs to furnish a certificate in prescribed format.

Section 80CCD (1)
Deduction for contribution to notified pension scheme which was previously under one section by name 80CCD has now been divided into two sections. As per section 80CCD(1), employee contribution under notified pension scheme by Central Government or any other employer, is deductible up to 10 per cent of salary, subject to limit of 1 lakh under Section 80C.

Section 80CCD (2)
As per this section, employer contribution under notified pension scheme by Central Government or any other employer is deductible up to 10 per cent of salary, without any upper limit.

Apart from the above mentioned sections, an additional deduction of Rs. 1 lakh (apart from existing 1.5 lakh) on the interest amount would be available for first time home buyers with home loan up to Rs. 25 lakh. This will be available for FY 2013-14 (AY 2014-15) and is welcome news for a lot of middle class first home buyers.

Please note that Section 80CCF (Investment in Infrastructure Bonds) has been removed from the available deductions for FY 2012-13. The information in this article should be useful for both, filing taxes as well as planning taxes for the next fiscal year (AY 2014-15).

Source: profit.ndtv.com

Weighted deduction @150% of the expenditure incurred on skill development under section 35CCD

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Press Release
Dated 18th July, 2013

Subject: Guidelines for weighted deduction @150% of the expenditure incurred on skill development under section 35CCD of the Incometax Act, 1961.

The National Manufacturing Policy (NMP), 2011 proposed to provide inter alia, the following direct taxes incentives to promote skill development:
“Weighted deduction of 150% of the expenditure (other than land or building) incurred in Public Private Partnership (PPP) projects for skill development in manufacturing sector in separate facilities in coordination with National Skill Development Corporation (NSDC).”
2. As a follow up of NMP, Finance Act, 2012 inserted a new Section 35CCD in the Income‐tax Act, 1961(‘the Act’) which provides that for computing business income, a company shall be allowed a weighted deduction of 150% of expenses (other than land or building) incurred on skill development project notified by the Board in accordance with the guidelines as may be prescribed.
3. The guidelines for approval of skill development project are prescribed in new Rules 6AAF, 6AAG and 6AAH inserted in the Incometax Rules, 1962 by Notification No. S.O.2166(E) dated 15th July, 2013. The salient features of the guidelines are as under:
   (1)A company engaged in the business of manufacturing any article or thing (other than alcoholic spirits and tobacco products) or engaged in providing specified services, as listed under Rule 6AAH, shall be eligible for weighted deduction of the expenditure incurred on skill development.
   (2)The project should be undertaken in separate facilities in a training institute set up by the Central or State Government or a local authority or a training institute affiliated to National Council for Vocational Training (NCVT) or State Council for Vocational Training (SCVT). Besides Government training institutes, private sector training institutes affiliated to NCVT or SCVT shall also be eligible.
   (3)National Skill Development Agency (NSDA) shall be the nodal agency to scrutinize the applications made by eligible companies in Form No. 3CQ. The Central Board of Direct Taxes(CBDT) shall notify the skill development project based on the recommendation of NSDA in this regard.
   (4) All expenses (not being expenditure in the nature of cost of any land or building), incurred wholly and exclusively for undertaking a notified skill development project shall be eligible for deduction under section 35CCD,except the expenditure which is reimbursed or reimbursable to the company by any person, whether directly or indirectly.
   (5) The company undertaking skill development project shall be required to maintain separate books of account of the project notified under section 35CCD and get such books of account audited.
   (6) It is intended that the skill development project shall provide training to potential employees or newly recruited employees. Skill development of existing employees of the company shall not be eligible for notification under section 35CCD, if the training of such employees commences after six months of their recruitment.
 
(Rekha Shukla)
Commissioner of Income Tax
(Media & Technical Co‐ordination)
Official Spokesperson, CBDT

Guidelines for approval of skill development project under section 35 CCD.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 15th July, 2013.
(INCOME‐TAX)

S.O. 2166(E).– In exercise of the powers conferred by section 295 read with sub‐section (1) of section 35CCD of the Income‐tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income‐tax Rules, 1962, namely:‐
1. (1) These rules may be called the Income‐tax (10th Amendment) Rules, 2013.
    (2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income‐tax Rules, 1962 (hereafter referred to as the said rules), after rule 6AAE, the following shall be inserted, namely:‐
“6AAF. Guidelines for approval of skill development project under section 35 CCD.—
(1) A skill development project shall be considered for notification if it is undertaken by an eligible company and the project is undertaken in separate facilities in a training institute.
(2) The eligible company, before undertaking any skill development project, shall make an application for notification of such project under sub‐section (1) of section 35CCD, in duplicate, in Form No. 3CQ, to the National Skill Development Agency (hereinafter referred to as the NSDA).
(3) The eligible company shall also send a copy of the application in Form No. 3CQ to the Commissioner of Income‐tax or the Director of Income‐tax, as the case may be, having jurisdiction over the case, accompanied by the acknowledgement receipt as evidence of having furnished the application form in duplicate to the NSDA.

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Second Change remember Tax Defaulters.

The Income Tax department has been at the center of all action in the recent past, because of the plans for its revamp that the government has had.

The revenues that the department have not been in line with the expected numbers, since the number of assesses registered with it are much more than the ones who are actually filing the returns.

Filing I-T returns first time? What you need to know?

This has led to the government considering serious changes in the structure of the entire department along with major modifications in the operational policies, which has reflected in the decisions that it has taken recently.

One important move that the government has decided to execute is the implementation of the amnesty scheme named as the ‘Voluntary Compliance Encouragement Scheme’.

This scheme would allow all the tax defaulters registered with the department, to declare their liabilities pertaining to the department within a stipulated timeframe and escape the adverse results that are in store for them otherwise.

The stipulated time period is the end of the month of December, and anyone who files his returns in line with his liabilities within this time frame would avoid any penalties or penal proceedings.

The government has planned to increase the revenue of the IT department from the indirect taxes, so as to increase the efficiency and help accommodate better growth.

The difficult economic conditions and the growing pressure on the growth rate of the country have not helped the cause, and have led to the coveted fragment of the Indian governance structure acquiring an aggressive stance.

The authorities have promised strong actions against those who fail to respond to the notices sent by the department and its concerned wings, irrespective of the magnitude of the irregularities.

The figures suggest that there is a gaping hole in what the government should receive and what it is receiving currently, which has fast tracked the revamping of the entire Income Tax section.

The highest number of defaulters has been found in the service tax section, which makes it imperative for all the commercial institutions across the country, to respond to tax notices and declare their tax liabilities voluntarily.

The effect although yet to be measured, is expected to be significant, as the government has rarely taken such a strong stand against the poor state of the efficiency of the Income Tax department.

Also, the digitization of the operations of the department is expected to impact revenue generation significantly, as it would completely eliminate any irregularities in the calculation of the return amounts.

The implementation of the scheme would also prove to be highly beneficial for the consumer in the longer run, and this would be in addition to the immediate benefit of avoiding penalties and penal proceedings, making it a master step from the Indian government.

Source: www.moneycontrol.com

Salaried Employee, How to split Salary Income Section-wise?

I would like to share this important information for salaried employee who paid or deduct Tax as TDS and submit Income Tax Return annually.  Normally Salaried employee does not know all sections of Income Tax related with Form No. 16. and thus they are in trouble after furnishing Annual Return to Income Tax Department.  Salary Income classified into 6 parts.
  • CHARGE-ABILITY
  • DEDUCTIONS
  • DEFINITIONS
  • EXEMPTIONS
  • ALLOWANCES
  • VALUATION OF PERQUISITES
All the parts are related with Income Tax Sections found in Form No. 16.  The following table are clarify all the conclusions regarding Salary Income.

SECTION NUMBER
DETAILS
Sec 15
CHARGEABILITY
Sec 16 : DEDUCTIONS:-
Sec 16(ii)
ENTERTAINMENT ALLOWANCE
Sec 16(iii)
PROFESSION TAX
Sec 17 : DEFINITIONS:-
Sec 17(1)
SALARY
Sec 17(2)
PERQUISITES
Sec 17(3)
PROFITS IN LIEU OF SALARY
EXEMPTIONS:-
Sec 10(5)
VALUE OF TRAVEL CONCESSION OR ASSISTANCE
Sec 10(6)
IN CASE OF A FOREIGN NATIONAL
Sec 10(7)
INDIAN CITIZENS EMPLOYED ABROAD BY GOVERNMENT OF INDIA
Sec 10(45)
IN CASE OF CHAIRMAN OR MEMBER OF UNION PUBLIC SERVICE COMMISSION
Sec 10(10)
GRATUITY
Sec 10(10A)
PENSION
Sec 10(10AA)
LEAVE SALARY
Sec 10(10B)
RETRENCHMENT COMPENSATION
Sec 10(10C)
VOLUNTARY RETIREMENT / SEPARATION SCHEME
Sec 10(10CC)
TAX ON NON MONETARY PERQUISITES
Sec 10(11)
STATUTORY / PUBLIC PROVIDENT FUND
Sec 10(12)
RECOGNISED PROVIDENT FUND
Sec 10(13)
APPROVED SUPERANNUATION FUND
ALLOWANCES:-
Sec 10(13A)
HOUSE RENT ALLOWANCE
Sec 10(14)
SPECIAL ALLOWANCES(Allowances prescribed by the CBDT under Rule 2BB of the Income-tax Rules as exempt to the extend spent or up to specified limit)
VALUATION OF PERQUISITES:-
Sec 17(2)(i)
RESIDENTIAL ACCOMODATION FREE OF COST
Sec 17(2)(ii)
RESIDENTIAL ACCOMODATION AT A CONCESSIONAL RENT
Sec 17(2)(iii)
BENEFITS OR AMENITIES TO SPECIFIED EMPLOYEES
Sec 17(2)(iv)
ANY SUM PAID BY THE EMPLOYER IN RESPECT OF ANY OBLIGATION OF THE EMPLOYEE

File Income Tax Return in July-13. Genuine Guidelines, Precautions etc. for A.Y. 2013-14

The due date for filing personal tax returns for the financial year 2012-13 is July 31. Taxpayers need to be aware of various points while filing their returns. Filing incorrect details may result in interest, penalty or delay in refunds. These points can help you file your return correctly.

Choose the correct form: Different forms available for tax filing are ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4S (Sugam) or ITR-4. The form selection is dependent on your source of income. For example, if you have rental income from two houses or capital gains, ITR-2 would be applicable. However, if you have only salary income and certain other incomes, then ITR-1 is applicable.

Claim all your deductions: Some investments and donations are eligible for deduction from the total income. If you were unable to claim the deduction from your employer, you can claim the deductions in your tax return, subject to certain conditions. Make sure that you have claimed the deductions under the appropriate head in the return.

Claim all your past and current losses: As per the Income-tax Act, 1961, certain losses can be carried forward and set off from next year’s income. You should take stock of such losses, which can be very helpful in reducing your tax liability.

Mention the exempt incomes: Incomes like interest on NRE bank accounts, dividend, agricultural income, exempt income of minor child, etc, are classified as exempt income. Although you don’t have to pay tax on such income, tax returns have a specific schedule to report such income.

Pay the balance tax liability: If there is any balance tax liability after considering TDS / advance tax paid, then the balance tax liability along with any interest should be deposited as self assessment tax before filing the tax return.

Verify your Form 26AS: You can log on to www.income taxindia.gov.in or to www.tin.nsdl. com and download the Form 26AS. This form has all details of tax deducted and deposited against your PAN. This means that TDS, advance tax and self-assessment tax will all be reflected in this form.

Mention the correct personal details: You need to mention your name, father’s name, PAN, address, date of birth, residential status, etc. You also need to provide the correct bank account number and the IFSC code so that refund, if any, can be credited to your bank account.

Report assets and liabilities under certain cases: A new ‘Schedule AL’ has been added to ITR 3 and ITR 4, which are used by taxpayers having partnership or business income. As per the new schedule, if the taxpayer’s total income exceeds Rs 25 lakh, he will be required to report details of his assets along with liability against such assets. Collect all these details so that it can be mentioned in the tax return.

Check the filing procedure: Check the filing mode applicable to you – is it online or physical filing? It is mandatory to file your tax returns online if your taxable income is above Rs 5 lakh. Taxpayers earning income up to Rs 5 lakh need not file returns, subject to certain conditions.

Submission of ITR V: Upon online filing of tax return online, the tax return acknowledgement (ITR V) is required to be signed and sent to the Central Processing Centre (CPC), Bengaluru. It should be ensured that the signed ITR V is signed in blue ink only and submitted with CPC within 120 days of filing of tax return online.

Source: www.caclubindia.com

Description of ITR for Individual Taxpayee for Asstt. Year 2013-14


Dear Taxpayee I would like to share some important information regarding Filing of Annual Income Tax Return in Asstt. Year 2013-14 as per Income Tax Department amendment updated Income Tax Form (ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4S (Sahaj) and ITR-4).  Every year Income Tax Department has been changed ITR Form and thus Taxpayee always in difficulty to submit their Annual Return.  Therefore, an important information of ITR with full description is as follows:


ITR Description

Return Type Who can use this form Who cannot use this form
ITR 1 (Sahaj) This Return Form is to be used by an Individual whose Total Income for the assessment year 2013-14 includes :-

  • Income from Salary/Pension; or
  • Income from One House Property (excluding cases where loss is brought forward from previous years); or
  • Income from Other Sources (excluding winning from Lottery and Income from Race Horses)
Note:
Further, in a case where the income from another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, these Return Form can be used only if the Income being clubbed falls under the above categories
1. This Return Form should not be used by an Individual whose Total Income for the assessment year 2013-14 includes:-

a) Income from more than one House Property; or
b) Income from winning from Lottery or income from winning from Race Horses; or
c) Income under the head "Capital Gains" ,e.g., short term capital gains or long term capital gains from the sale of house, plot, shares etc.; or
d) Income from agriculture/exempt income in excess of ₹ 5,000; or
e) Income from Business or Profession ;or
f)Loss under the head 'Income from other sources'; or
g)Person claiming relief of foreign tax paid under section 90,90A or 91;or
h)Any resident having an asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
ITR 2 This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year
2013-14 includes :-

a) Income from Salary / Pension; or
b) Income from House Property; or
c) Income from Capital Gains; or
d) Income from Other Sources (including Winning from Lottery and Income from Race Horses).Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.
This Return Form should not be used by an Individual or a Hindu Undivided Family whose Total Income for assessment year 2013-14 includes Income from Business or Profession
ITR 3 This Return Form is to be used by an individual or an Hindu Undivided Family for the assessment year 2013-14 who is a partner in a firm and where income chargeable to income-tax under the head "Profits or gains of business or profession" does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm. In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, he shall use this form only and not Form ITR-2. This Return Form should not be used by an individual whose total income for the assessment year 2013-14 includes Income from Business or Profession under any proprietorship.
ITR 4S (Sugam) This Return Form is to be used by an individual/HUF whose total income for the assessment year 2013-14 includes :-

a) Business income where such income is computed in accordance with special provisions referred to in section 44AD and 44AE of the Act for computation of business income; or

b) Income from Salary/Pension; or
c) Income from One House Property (excluding cases where loss is brought forward from previous years); or
d) Income from Other Sources (Excluding winning from Lottery and Income from Race Horses)

Note:

1. The Income computed shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation or deduction under the Income Tax Act.
2. Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the Income being clubbed falls into either of the above income categories
This Return Form cannot be used to file the following incomes

a) Income from more than one House Property; or
b) Income from winning from Lottery or income from Race Horses; or
c) Income under the head "Capital Gains", e.g. Short term capital gains or long term capital gains from the sale of house, plot, shares etc.; or
d) Income from agriculture/exempt income in excess of ₹ 5,000; or
e) Income from Speculative Business and other special incomes; or
f) Income from a profession as referred to in sub-section (1) of section 44AA or income from agency business or income in nature of commission or brokerage; or
g)Person claiming relief of foreign tax paid under section 90,90A or 91;or
h)Any resident having an asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
ITR 4 This Return Form is to be used by an individual or a Hindu Undivided Family for the assessment year 2013-14 who is carrying out a proprietary business or profession.  

Download ITR Forms Click Here for Asstt. Year 2013-14

Free Download Interest Calculator u/s. 234A, 234B, 234C & 234D to Pay Interest for A.Y. 2013-14

The Income Tax Act provides for charging of interest for non- payment/short payment/deferment in payment of advance tax which is calculated as below:

INTEREST U/S 234A: For late or non furnishing of return, simple interest @ 1% for every month or part thereof from the due date of filing of return to the date of furnishing of return, on the tax as determined u/s 143(1) or on regular assessment as reduced by TDS/advance tax paid or tax reliefs, if any, under Double Tax Avoidance Agreements with foreign countries.

INTEREST U/S 234B: For short fall in payment of advance tax by more than 10%,simple interest @ 1% per month or part thereof is chargeable from 1st April of the assessment year to the date of processing u/s 143(1) or to the date of completion of regular assessment, on the tax as determined u/s 143(1) or on regular assessment less advance tax paid/ TDS or tax reliefs, if any, under Double Tax Avoidance Agreements with foreign countries.

INTEREST U/S 234C: For deferment of advance tax. If advance tax paid by 15th September is less than 30% of advance tax payable, simple interest @ 1% is payable for three months on tax determined on returned income as reduced by TDS/TCS/Amount of advance tax already paid or tax relief, if any, under Double Tax Avoidance Agreement with forgiving contribution. Similarly, if amount of tax paid on or before 15th December is less than 60% of tax due on returned income, interest @ 1% per month is to be charged for 3 months on the amount stated as above. Again, if the advance tax paid by 15th March is less than tax due on returned income, interest @ 1% per month on the shortfall is to be charged for one month.

INTEREST U/S 234D: Interest @ 0.5% is levied under this Section when any refund is granted to the assessee u/s 143(1) and on regular assessment it is found that either no refund is due or the amount already refunded exceeds the refund determined on regular assessment. The said interest is levied @ 0.5% on the whole or excess amount so refunded for every month or part thereof from the date of grant of refund to the date of such regular assessment.

Free Download Click Here 
(Developed by- CA Prakash Dugar)

Refunds-Interest u/s.244A when Assessee is not at fault

SECTION 244A OF THE INCOME-TAX ACT, 1961 - REFUNDS - INTEREST ON - PAYMENT OF INTEREST UNDER SECTION 244A WHEN ASSESSEE IS NOT AT FAULT
INSTRUCTION NO. 7/2013 [F.NO.312/54/2013-OT], DATED 15-7-2013
Hon'ble Delhi High Court vide its judgment in case of Court On its Own Motion v. UOI in W.P.(C) 2659/2012 dated 14-3-2013 [2013] 31 taxmann.com 31 (Delhi) has issued seven Mandamus for necessary action by the Income-tax Department. One Mandamus is on payment of interest under section 244A of Income-tax Act 1961 when the assessee is not at fault.
2. On this issue, the Hon'ble Court has observed as under:
"31. In the affidavit filed on 29th January, 2013, the respondents have stated as under:-
'Where an assessee makes a mistake in the claim of TDS in the e-return and the return is processed and a demand is raised and subsequently, the assessee rectifies the mistake in the claim and files an online rectification application, the same is processed and on any excess TDS is refunded, the interest under section 244A is granted as per the I.T. Act after excluding the period of delay attributable to the assessee in terms of sub-section (2) of section 244A of the Income-tax Act, 1961.'.
32. An assessee can be certainly denied interest if delay is attributable to him in terms of sub-section (2) to section 244A. However, when the delay is not attributable to the assessee but due to the fault of the Revenue, then interest should be paid under the said section. False or wrong uploading of past arrears and failure to follow the mandate before adjustment is made under section 245 of the Act, cannot be attributed and treated as fault of the assessee. These are lapses on the part of the Assessing Officer i.e. the Revenue. Interest cannot be denied to the assessees when the twin conditions are satisfied and in favour of the assessee. However, even in such cases Assessing Officer may deny interest for reasons to be recorded in writing if the assessee was in fault and responsible for the delay. This is the fourth mandamus which we have issued. "
3. In view of the direction of the Hon'ble Court, I am directed to convey that in no case should interest u/s 244A of the Act be denied to the assessee where the assessee is not at fault. The observation of the Hon'ble High Court in Para 32 above be strictly kept in mind while dealing with such matters.
4. I am further directed to state that the above be brought to the notice of all officers working under your jurisdiction for necessary and strict compliance.