Gsoftnet

All the income tax due dates, last dates, deadlines in the month October-13

Income Tax Returns, Reports, Statements etc. and Payment of Advance Tax by Individuals, Non-corporates and Companies due dates, last dates, deadlines for the period from 1-4-2013 to 31-3-2014 (A.Y.2013-14). Income Tax Calendar for Fin. Year 2013-14. The due dates includes all TDS Returns, TDS Statements, income tax returns, income tax payments & TDS certificates along with form name and period. The assessee can find their obligation toward income tax department through this income tax calendar for the year 2013-14 easily.







DUE DATES IN THE MONTH OF OCTOBER-2013
Due DateParticulars
October 15Quarterly Statement of TDS / TCS deposited for the quarter ending September 30, 2013. ( Applicable in all cases of TDS / TCS except when tax is deducted by an office of the Government ). TDS Salary : Form 24Q, TDS other Form 26Q, TDS non-resident : Form 27Q, TCS : Form 27EQ
October 30Quarterly TDS Certificate on Form No. 16A ( in respect of tax deducted for payment other than salary by a person not being an office of the Government ) or quarterly TCS Certificate on Form No. 27D ( in respect of tax collected by any person ) for the quarter ending September 30, 2013.
October 31Annual audited accounts for each approved programmes under section 35(2AA) Copies of declaration received in Form No. 60/61 (not being received at the time of opening a bank account) during April 1,2013 to September 30, 2013 to the concerned Director (Investigation).
Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in the quarter ending September 30, 2013. Form No. 26QAAA.
Quarterly Statement of Tax deducted by an office of the Government for the quarter ending September 30, 2013.
TDS Salary : Form 24Q, TDS other Form 26Q, TDS non-resident : Form 27Q


If, Refund Status enquiry does not give any satisfactory information ?

As far as the Refunds issues are concerned, the process has been reasonably streamlined & made simpler by the Income Tax Department. However, there are instances wherein getting the refunds become cumbersome & annoying. In most of the cases, refunds are not issued for the following reasons:
a.       Incorrect entry of PAN number
b.      Change of address without proper intimation to the tax department
c.      Wrong bank account provided in the tax return
d.      Inconsistency in TDS credit with reference to 26AS (Tax Credit Status)
e.      Delayed in tax return filing or non-filing by the Tax Deductor.

The best approach in case the refund is delayed beyond a years time or so is to visit the income tax office for the follow up of the refund or send a grievance letter addressed to the concerned Income Tax Assessing Officer, with the copy of the tax return acknowledgement. If there is a severe delay, a letter could be addressed to the Jurisdictional Chief Commissioner of the Income Tax, with a copy to the Grievance Cell and the concerned Income Tax Officer wherein one can attach copies of previous letters which may have been written to the Income Tax Assessing Officer, along with a copy of the tax return filed.

Grant of Ad-hoc Bonus to Central Government Employees.

No.7/24/2007/E III (A)
Government of India
Ministry of Finance
Department of Expenditure
E III (A) Branch
New Delhi, the 27th September, 2013
OFFICE MEMORANDUM
Subject : Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2012-13.
The undersigned is directed to convey the sanction of the President to the grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) equivalent to 30 days emoluments for the accounting year 2012-13 to the Central Government employees in Groups 'C’ and 'D’ and all non-gazetted employees in Group 'B' who are not covered by any Productivity Linked Bonus Scheme. The calculation ceiling for payment of ad-hoc Bonus under these orders shall continue to be monthly emoluments of Rs. 3500/-, as hitherto. The payment of ad-hoc Bonus under these orders will also be admissible to the eligible employees of Central Para Military Forces and Armed Forces. The orders will be deemed to be extended to the employees of Union Territory Administration which follow the Central Government pattern of emoluments and are not covered by any other bonus or ex-gratia scheme.

2. The benefit will be admissible subject to the following terms and conditions:
(i) Only those employees who were in service as on 31.3.2013 and have rendered at least six months of continuous service during the year 2012-13 will be eligible for payment under these orders. Pro-rata payment will be admissible to the eligible employees for period of continuous service during the year from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded off to the nearest number of months).
(ii) The quantum of Non-PLB (ad-hoc bonus) will be worked out on the basis of average emoluments/calculation ceiling whichever is lower. To calculate Non-PLB (Ad-hoc bonus) for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month). This will thereafter be multiplied by the number of days of bonus granted. To illustrate, taking the calculation ceiling of monthly emoluments of Rs, 3500 (where actual average emoluments exceed Rs. 3500), Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs.3500x30/30.4 = Rs.3453.95 (rounded offto Rs.3454/-).
(iii) The casual labour who have worked in offices following a 6 days week for at least 240 days for each year for 3 years or more(206 days in each year for 3 years or more in the case of offices observIng 5 days week), will be eligible for this Non PLB (Ad-hoc Bonus) Payment. The amount of Non-PLB (ad-hoc bonus) payable will be (Rs.1200x30/30.4 i.e.Rs.1184.21(rounded off to Rs,1184/-). In cases where the actual emoluments fall below Rs.1200/- p.m., the amount will be calculated on actual monthly emoluments.
(iv) All payments under these orders will be rounded off to the nearest rupee.
(v) The clarificatory orders issued vide this Ministry’s OM No.F.14(10)-E. Coord/88 dated 4.10.1988, as amended from time to time, would hold good.
3. The expenditure on this account will be debitable to the respective Heads to which the pay and allowances of these employees are debited.
4. The expenditure incurred on account of Non-PLB (Ad-hoc Bonus) is to be met from within the sanctioned budge provision of concerned Ministries/Departments for the current year.
5. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India.
sd/-
(Amar Nath Singh)
Deputy Secretary to the Govt of India
Source: www.finmin.nic.in

7th Pay panel formed, retirement age may go up 62 yrs

The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners.
Siddharth Zarabi 
The national capital, home to a vast majority of central government employees, is headed for elections this November. And so are four other states, followed by the general elections sometime early next year. This, more than anything else, explains the central government's hurry to promise its employees higher wages.

The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners. The fact that this award is one more in a long list of expenditure-heavy pre-election programmes, will mean several consequences for India's finances. Back of envelope calculations suggest that even if the increments in the 6th pay commission were to be matched, the centre's wage bill could rise by up to Rs 1 lakh crore in 2016. But on the other hand, this payout will spark a surge in consumption starting that year. Why? The sixth pay commission award amounted to around 0.5 percent of GDP and a tidy sum was handed out as arrears in the start of 2008. That extra spending power meant that the ensuing slowdown was mitigated to some extent. This could play out again in 2016. Meanwhile, CNBC TV18 learns that the proposal to extend the retirement age of central government employees by two years has received fresh impetus. A decision on this could be taken within a week or two, and would be the second major populist decision by the UPA to woo the urban middle class and the powerful government employee mass in Indian society.
Source: www.moneycontrol.com

Download Updated Version of ITR-3, ITR-4, ITR-6 and ITR-7 for Asstt. Year 2013-14.

The CBDT has updated Income Tax Return Forms Version for Asstt. Year 2013-14 on 17.09.2013 and 23.09.2013.

The updated Version of ITRs are for Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship it means the assessee having income from property business or profession only as well as for companies other than companies claiming exemption under section 11 of Income Tax Act.

Under the head Audit Information, if the assessee is liable for Audit u/s 44AB and the accounts have been audited by an accountant, the details of such audit report along with the date of furnishing it to the department has to be filled. Further, if the assessee is liable to furnish other audit report the section under which audit is required and the date of furnishing it to the department (if audit has been carried out under that section) has to be filled. From A.Y.2013-14 it has become mandatory to furnish audit reports (if the audit has been carried out) under the following sections electronically on or before the date of filing the return of income.

Updated Version of ITR-3, ITR-4, ITR-6 and ITR-7 for Asstt. Year 2013-14

Filing of Tax Audit Report Date Extended but no relief for ITR Filing.

The CBDT vide order u/s 119 dated 26/09/2013 has relaxed the requirement of furnishing the Report of Audit electronically for AY 2013-14 for assessees who are presently finding it difficult to upload the same in the system.

It has now been decided to extend the last date of filing and to relax the additional fee applicable on e-Form 23C upto 31st October, 2013 and as such the e-Form 23C can be filed for appointment of Cost Auditor with Normal Applicable Fee, upto 31st October, 2013 or within 90 days of the Commencement of the company's financial year to which the appointment relates, whichever is later.

The Tax audit report can upload by the Assessee electronically on or before 31.10.2013 for Asstt. Year 2014.

The paper audit report may submit by the Assessee to jurisdictional Assessing Officer on or before 30.09.2013.

It means that there is no any extension to file Income Tax Return for Audit Case for Asstt. Year 2013-14 i.e. 30.09.2013.

The Assessee may submit their Audit Report to ITO on or before 30.09.2013 and electronically upload upto 31.10.2013 if any problem.

For detailed information Download Circulation (Click Here)

Extension of Due Date for e-file Audit Report upto 31.10.2013 - Clarification

The CBDT has issued a latest notification regarding relaxation of furnishing the Tax Audit Report e-Filing as prescribed under the priviso to sub-Rule (2) of Rule 12 of Income Tax Rules for Assessment Year 2013-14 vide F.No. 225/117/2013/ITA.II dated 26th September, 2013.

In the above mentioned notification under section 119 of the Income Tax Act, 1961 the CBDT clarify as under:

The Assessees, who are presently finding it difficult to upload the prescribed Reports of Audit (as Referred to above) in the system electronically may also furnish the same manually before the jurisdictional Assessing Officer with the Prescribed due date.

The said Report of Audit should however be furnished electronically on or before 31.10.2013.

Download Circular regarding Relaxation of last date and additional fee in filing of e-Form 23C (Click Here)

7th Pay Commission Facts and recommendations.

The central government today announced the constitution of Seventh Pay Commission which will benefit about 50 lakhs central government employees and more than 30 lakhs pensioners all over India.
The Finance Minister after getting approved from the Prime Minister announced the decisions. The recommendations of the 7th Pay Commission are likely to be implemented with effect from January 1, 2016.The Central Government constitutes  Pay Commission every ten years to revise the pay scales for its employees and it is implemented with some modifications by some states. This announcement has created a joyous atmosphere among the employees and are eagerly waiting for its details.

50% DA Merge
From now, the longstanding question of merging 50% DA with the Basic Pay stands unanswered and the importance of it is slightly decreased.
Who will be the head of committee
Who will be the head of committee the employees are now awaits the announcement regarding who will head the constitution and its members.
Focus on 7th CPC
In VII CPC the anomaly  committee should rectify all anomalies in quick time rather than taking long years.
The merger of 50% DA which was announced in V CPC was not mentioned in the VI CPC . But in VII CPC, employees are expecting the merger of DA and Pay revision in between 10 years.
Final Words
This announcement may trigger in rise in prices right from the vegetable vendor to all other things.
Source: www.7thcpcnews.blogspot.in

Free Download 7th Pay Calculator, Pay Scales (Projected).

Generally every pay commission, before recommending a pay structure, it used to analyze all the aspects including the economic situation of the country, financial resources of the government, comparison with the public sector, private sector and state government pay structure etc. So it is very much clear that Pay Determination is very complicated and sensitive task. Without any doubt every one accepts that this is very challenging task too. In order to determine the new pay structure the pay commission has to go through voluminous data consisting current economic condition, strength of the work force and working condition etc. In the meantime, if one tries to suggest or comment about 7thy pay commission pay scale or about what the seventh pay commission pay scale would be, it will not get much importance.

The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.  As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016. The www.gservents.com had published projected pay scale of 7th Pay Commission, on the basis of this pay structure the following 7th Pay Calculator is developed.

LATEST UPDATES ON 7TH PAY COMMISSION (CLICK HERE)
FREE DOWNLOAD 7TH PAY CALCULATOR AND PAY SCALES (PROJECTED)
www.gservants.com#sthash.Spn0G3dM.dpuf
www.gservants.com#sthash.Spn0G3dM.dpuf

Your suggestions & comments will be highly acceptable and welcome....
Generally every pay commission, before recommending a pay structure, it used to analyze all the aspects including the economic situation of the country, financial resources of the government, comparison with the public sector, private sector and state government pay structure etc. So it is very much clear that Pay Determination is very complicated and sensitive task. Without any doubt every one accepts that this is very challenging task too. In order to determine the new pay structure the pay commission has to go through voluminous data consisting current economic condition, strength of the work force and working condition etc. In the meantime, if one tries to suggest or comment about 7thy pay commission pay scale or about what the seventh pay commission pay scale would be, it will not get much importance. - See more at: http://gsoftnet.blogspot.in/2013/03/7th-pay-commission-projected-pay-scale.html#sthash.Spn0G3dM.dpuf
Generally every pay commission, before recommending a pay structure, it used to analyze all the aspects including the economic situation of the country, financial resources of the government, comparison with the public sector, private sector and state government pay structure etc. So it is very much clear that Pay Determination is very complicated and sensitive task. Without any doubt every one accepts that this is very challenging task too. In order to determine the new pay structure the pay commission has to go through voluminous data consisting current economic condition, strength of the work force and working condition etc. In the meantime, if one tries to suggest or comment about 7thy pay commission pay scale or about what the seventh pay commission pay scale would be, it will not get much importance. - See more at: http://gsoftnet.blogspot.in/2013/03/7th-pay-commission-projected-pay-scale.html#sthash.Spn0G3dM.dpuf
Generally every pay commission, before recommending a pay structure, it used to analyze all the aspects including the economic situation of the country, financial resources of the government, comparison with the public sector, private sector and state government pay structure etc. So it is very much clear that Pay Determination is very complicated and sensitive task. Without any doubt every one accepts that this is very challenging task too. In order to determine the new pay structure the pay commission has to go through voluminous data consisting current economic condition, strength of the work force and working condition etc. In the meantime, if one tries to suggest or comment about 7thy pay commission pay scale or about what the seventh pay commission pay scale would be, it will not get much importance. - See more at: http://gsoftnet.blogspot.in/2013/03/7th-pay-commission-projected-pay-scale.html#sthash.Spn0G3dM.dpuf
Generally every pay commission, before recommending a pay structure, it used to analyze all the aspects including the economic situation of the country, financial resources of the government, comparison with the public sector, private sector and state government pay structure etc. So it is very much clear that Pay Determination is very complicated and sensitive task. Without any doubt every one accepts that this is very challenging task too. In order to determine the new pay structure the pay commission has to go through voluminous data consisting current economic condition, strength of the work force and working condition etc. In the meantime, if one tries to suggest or comment about 7thy pay commission pay scale or about what the seventh pay commission pay scale would be, it will not get much importance. - See more at: http://gsoftnet.blogspot.in/2013/03/7th-pay-commission-projected-pay-scale.html#sthash.Spn0G3dM.dpuf

Government announces Seventh Pay Commission for central employees w.e.f. 01.01.2016

NEW DELHI: Ahead of elections, the government on Wednesday announced constitution of the Seventh Pay Commission, which will go into the salaries, allowances and pensions of about 80 lakh of its employees and pensioners.
"Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016", finance minister P Chidambaram said in a statement.

The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the assembly elections in 5 states in November and the general elections next year.
The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.
As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016, Chidambaram said.
The Sixth Pay Commission was implemented from January 1, 2006, fifth from January 1, 1996 and fourth from January 1, 1986.
The names of the chairperson and members of the 7th Pay Commission and its terms of reference will be finalized shortly after consultation with major stakeholders, Chidambaram said.
Source: www.timesofindia.indiatimes.com

Dearness Allowance to Central Government employees w.e.f. 01.07.2013 - OM

No.1-8/2013-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated: 25th September, 2013.
OFFICE MEMORANDUM
Subject: Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.7.2013.
The undersigned is directed to refer to this Ministry’s Office Memorandum No.1(2)/2013-E-II (B) dated 25th April, 2013 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 80% to 90% with effect from 1st July. 2013.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No.1(3)/2008-E-II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.
3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.
4. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.
5. In so far as the employees working serving in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.
6. The Hindi version of this O.M. is also issued.
sd/-
(Kishori Raman Sharma)
Under Secretary to the Government of India
Source: www.finmin.nic.in

7th Pay Commission Confederation News

Confederation news about the announcement of 7th CPC - The Secretary General congratulate the entire Central Government employees...

7th CENTRAL PAY COMMISSION
ANNOUNCED BY THE GOVERNMENT
Central Government today announced the constitution of the 7th CPC. Confederation of Central Government Employees and workers has been demanding appointment of 7th CPC right from 2011 onwards. We have conducted continuous agitational programmes including Parliament March and also one day nationwide strike on 12th December 2012. After 12th December Strike we have decided to go for indefinite strike and strike ballot is also announced. We congratulate the entire Central Government employees who rallied behind Confederation. Confederation is the only organization which has conducted serious agitation demanding constitution of 7th CPC.

Government has not yet announced the Chairman, Committee members etc of the 7th CPC and also terms of reference. Further our demand for merger of DA, giving effect from 01.01.2011, inclusion of three lakhs Gramin Dak Sevaks under the purview of 7th CPC, granting DA merger to GDS and settlement of other demands in the 15 points Charter of Demands are also pending. Before announcing the terms of reference of 7th CPC. If Government is not ready to accept our above demands, Confederation National Executive will meet shortly and shall decide for further course of action.
ANNOUNCEMENT OF 7TH CPC IS ONE STEP FORWARD AND IT IS THE VICTORY OF THE WORKERS WHO FOUGHT FOR IT.

What says Indian Military for 7th Pay Commission - NDTV ?

New Delhi: India's armed forces are likely to have their own pay panel for the first time since independence.
This comes as the government prepares to set up the seventh Pay Commission to decide on salary hikes for the 50 lakh central government employees, ahead of state polls and national elections due by May. The pay panel's recommendations are expected to be implemented from January 2016.
All three military chiefs had written to the Defence Minister last year, asking for pay parity with civilian employees. The armed forces have also been demanding the one rank one pension and one rank one pay rule.

They are also pushing for fixing rank pay and fixing pay structure for jawans and junior commissioned officers (JCOs).
In June last year, Defence Minister AK Antony had reportedly written to Prime Minister Manmohan Singh on "growing discontent among the services personnel due to the anomalies in payment and salaries." 
Mr Antony had said that service personnel, ex-servicemen and pensioners were "equally agitated" and suggested that corrective action be taken or "things may take a bad turn."
A month later, the PM set up a four-member committee of secretaries, headed by the Cabinet Secretary, to look into the demands. The armed forces had then objected to the absence of military representation on the committee. Later, some of the anomalies were corrected, and the government had promised a separate pay commission for the armed forces. 
Government salaries had been substantially hiked under the sixth pay commission headed by Justice BN Srikrishna. The revised pays fixed the salary of the Cabinet Secretary at Rs 90,000 a month and Secretary at Rs 80,000 per month, while making Rs 6,660 as the minimum entry level salary.
Source: NDTV

Tax Calculations, e-TDS Returns, TDS Rate and Due Dates for Asstt.Year 2014-15.

We are well known about Income Tax Exemption Limit, which is announced by the Finance Minister in the Budget 2014-15.  On the basis of declared Income Tax Slab, Exemption Limit of Deductions under Chapter-VIA and other sections, we make a Tax Calculator including Dearness Allowance of July-2013 and applicable (Approximate) additional Dearness Allowance of January-2014 which will be effect on Salary.  Now we are enjoying Dearness Allowance 90% and upcoming Dearness Allowance may be comes by 10% - 12%. from January-2014. On this basis this Tax Calculator helps to all salaried employee how much Income Tax (TDS) Deduct from Salary every month.

Download Tax Calculator
For. A. Y. 2014-15  (Click Here)

Form 16 Utility (A.Y. 2013-14)
Free Download (Click Here


TIN-NSDL has been published latest FVU version 3.9 and 2.135 for TDS Deductor's and TCS Collector's w.e.f. 01.09.2013 (mandatory) to submit TDS Quarterly Statement for Asstt. Year 2014-15. In the below Key Features shows all these new amendments are to clarify TDS/TCS Deductors difficulties. Therefore, TDS/TCS Deductor read carefully all these amendments features regarding filing of Quarterly Statement for Asstt. Year 2014-15.  


FREE DOWNLOAD LATEST FVU 3.9 and 2.135 VER. W.E.F. 01.09.2013
FOR ASSTT. YEAR 2014-15
TDS Rate on Payment of Salary and Wages
Section 192Payment of Salary and Wages
Criterion of DeductionTDS is deducted if the estimated income of the employee is taxable.Employer must not deduct tax on non-taxable allowances like conveyance allowance, rent allowance, medical allowance and deductible investments under sections like 80C, 80CC, 80D, 80DD, 80DDB, 80E, 80GG and 80U.
No tax is required to be deducted at source if the estimated total income of the employee is less than the minimum taxable income (Rs. 2,20,000/- in case of Individual, HUF, AOP, BOD and AJP. Nil for others.)
TDS RateAs per Income Tax, Surcharge and Education Cess rates applicable on the estimated income of employee for the year.

TDS Rates on Payments other than Salary and Wages to Residents (including domestic companies)

SectionFor Payment ofOn Payments ExceedingIndividual/HUFOthers
193 Interest on Debentures Rs. 5000/- 10% 10%
194 Deemed Dividend No minimum 10% 10%
194 A Interest other than on securities by banks Rs. 10000/- 10% 10%
194 A Interest other than on securities by others Rs. 5000/- 10% 10%
194 B Winnings from Lotteries / Puzzle / Game Rs. 10000/- 30% 30%
194 BB Winnings from Horse Race Rs. 5000/- 30% 30%
194 C (1) Payment to Contractors Rs. 30000/- for single paymentRs. 75000/- for aggregate
payment during Financial Year
1% 2%
194 C (2) Payment to Sub-Contractors / for Advertisements
194 D Payment of Insurance Commission Rs. 20000/- 10% 10%
194 EE Payment of NSS Deposits Rs. 2500/- 20% NA
194 F Repurchase of units by Mutual Funds / UTI Rs. 1000/- 20% 20%
194 G Commission ons Sale of Lottery tickets Rs. 1000/- 10% 10%
194 H Commission or Brokerage Rs. 5000/- 10% 10%
194 I Rent of Land, Building or Furniture Rs. 180000/- 10% 10%
Rent of Plant & Machinery Rs. 180000/- 2% 2%
194 IA Transfer of Immovable Property (w.e.f. 01.06.2013) Rs. 50 lacs 1% 1%
194 J Professional / technical services, royalty Rs. 30000/- 10% 10%
194 J (1) Remuneration / commission to director of the company - 10% 10%
194 J (ba) Any remuneration / fees / commission paid to a director of a company, other than those on which tax is deductible u/s 192. - 10% 10%
194 L Compensation on acquisition of Capital Asset Rs. 100000/- 10% 10%
194 LA Compensation on acquisition of certain immovable property Rs. 200000/- 10% 10%

Notes:
  1. No surcharge or education cess is deductible / collectible at source on payments made to residents {Individuals / HUF / Society / AOP / Firm / Domestic Company) on payment of incomes other than salary or wages.
  2. TDS at higher rate of 20% has to be deducted if the deductee does not provide PAN to the deductor.(section 206AA)
All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction or Tax Collection Account Number (TAN).

Issue of TDS Certificate

1. Section 192 (TDS on Salary) :
The certificate on Form No. 16 should be issued by the deductor by 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted.
2. In all other cases :
The certificate on Form No. 16A should be issued within fifteen days from the due date for furnishing the "statement of TDS" under rule 31A.

Forms for submitting Quarterly Statements of Tax Deducted at Source (Rule 31A)

(a) Statement of deduction of tax under section 192 in Form No. 24Q
(b) Statement of deduction of tax under sections 193 to 196D in :
  1. Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
  2. Form No. 26Q in respect of all other deductees.

Due Dates for submitting Quarterly Statements of Tax Deducted at Source (Rule 31A)

Date of ending of the quarter of the financial yearDue date,if deductor is an office of the GovernmentDue Date for others
30th June31st July of the financial year15th July of the financial year
30th September31st October of the financial year15th October of the financial year
31st December31st January of the financial year15th January of the financial year
31st March15th May of the financial year immediately following the financial year in which deduction is made15th May of the financial year immediately following the financial year in which deduction is made.

Procedure for cases under Non-Filers of Income Tax Return Monitoring System.

The CBDT has issued a order to all Chief Commissioners of INcome as well as Directors General of Income regarding standard operating Procedure for cases under Non-filers Monitoring System (NMS).  The full notification is as below:

The existing procedure for monitoring cases of "Non-Filers of IT Returns" as identified by Directors General of Income Tax (System) has been examined by the Board.  It is flet that at present, cases of Non-Filers are not being uniformly monitored by the Assessing Officers due to lack of consistency in approcah in dealing with such cases.  Therefore, in order to streamline processing of such cases and to ensure consistency in monitoring NMS cases by the Assessing Officers, the Board, hereby lays down the following Standard Operating Procedures:
  1. The Assessing Officer should issue letter to the assessee within 15 days of the case being assigned in NMS, seeking information about the return of income flagged in NMS.  Facility to generate letter has been provided in the NMS module of i-taxnet.
  2. If the letter is delivered, the Assessing Officer should capture the delivery date in the NMS module.
  3. If the letter is not delivered, the Assessing Officer should issue letter to the alternate address of the assessee available in the Online Monitoring System or any other address available with the Assessing Officer through field enquiries or otherwise. All addresses used in IT Return, AIR, CIB databases has been made available to the Assessing Officer in the Online Monitoring System to assist the field formations in identification of current address of the taxpayer.
  4. If the return is received, the assessing officer should capture the details in AST within 15 days of filing of the Return.  If the assessee informs that paper return has already been filed which was not captured in AST, the details of return should be entered in the AST within 15 days of receiving such information.  E-filed returns will be automatically pushed to NMS.
  5. If no return is required to the filed in the case (non resident etc.), the Assessing Officer should mark "No return is required" and mention reason for the same in NMS which needs to be confirmed Range head.
  6. If the Assessing Officer is not able to serve the letter and identify the taxpayer, assessing officer should mark the assessee "Assessee not traceable" in NMS which needs to be confirmed by Range head.
  7. In cases where the assessee has been identified and no return has been filed within 30 days of the time given in the letter, the Assessing Officer should consider initiation of proceedings u/s. 142(1)148 in AST.
  8. The cases will be processed every week by the Directorate of Systems and will be marked as close in NMS if one of the following actions are taken for A.Yr's 2010-11, 2011-12 and 2012-13:
            a)  Details of return are available in AST
            b)  Notice u/s. 142(1) or 148 has been issued in AST.
            c) "No Return is required" is marked by the Assessing Officer and confirmed by Range head.

I am further directed to state that the above be brought to notice of all officers working under your jurisdiction for necessary and strict compliance.

Latest Conveyance Allowance rates to Government Servants.

Maharashtra State Government has been issued a resolution regarding Conveyance allownace to all state Government Employee vide No. Pravas 1013/Pra.Kra.13/Seva-5 dated 23/09/2013. The State Government had amended Conveyance rates against resolution dated 03/03/2010 by apendix-7. 

The Traveling/Conveyance Allowance and there Dearness Allowances had rises by State Government to State Government Employee who are working under the Service Rule of Maharashtra State.  The State Government has revised following Conveyance Rates:



Rates - Conveyance Allowance to Government Servants (Click Here)

Rates of Travelling Allowance and Daily Allowance (Click Here)

Scheme for submissin of Income Tax Return u/s. 139B through TRPS

Tax Return Preparer Scheme seeks to assist small and marginal taxpayers in preparing and filing their tax returns by creating a legion of ‘Tax Return Preparers’ (TRPs). TRPs are requested to upload details of returns filed for current month against declaration made in the Resource Centre. This is mandatory for all TRPs.

Scheme for submission of returns through Tax Return Preparers [Section 139B]
(1) This section provides that, for the purpose of enabling any specified class or classes of persons to prepare and furnish their returns of income, the CBDT may notify a Scheme to provide that such persons may furnish their returns of income through a Tax Return Preparer authorised to act as such under the Scheme.
(2) The Tax Return Preparer shall assist the persons furnishing the return in a manner that will be specified in the Scheme, and shall also affix his signature on such return.

(3) A Tax Return Preparer can be an individual, other than
  1. any officer of a scheduled bank with which the assessee maintains a current account or has other regular dealings.
  2. any legal practitioner who is entitled to practice in any civil court in India.
  3. a chartered accountant.
  4. an employee of the ‘specified class or classes of persons’.
(4) The “specified class or classes of persons” for this purpose means any person other than a company or a person whose accounts are required to be audited under section 44AB (tax audit) or under any other existing law, who is required to furnish a return of income under the Act.
(5) The Scheme notified under the said section may provide for the following - 
  1. the manner in which and the period for which the Tax Return Preparers shall be authorised
  2. the educational and other qualifications to be possessed, and the training and other conditions required to be fulfilled, by a person to act as a Tax Return Preparer,
  3. the code of conduct for the Tax Return Preparers,
  4. the duties and obligations of the Tax Return Preparers,
  5. the circumstances under which the authorisation given to a Tax Return Preparer may be withdrawn, and
  6. any other relevant matter as may be specified by the Scheme.
(6) Every Scheme framed by the CBDT under this section shall be laid before each House of Parliament while it is in session to make the same effective.
(7) If both the houses decide in making any modification of Scheme, then the Scheme will have effect only in such modified form.
(8) Similarly, if both the Houses decide that any Scheme should not be framed, then such Scheme will thereafter be of no effect.
(9) However, such modification or annulment should be without prejudice to the validity of anything previously done under that scheme.
(10) Accordingly, the CBDT has, in exercise of the powers conferred by this section, framed the Tax Return Preparer Scheme, 2006, which came into force from 1.12.2006. As per this scheme, Tax Return Preparer means any individual who has been issued a Tax Return Preparer Certificate and a Unique Identification Number by the Partner Organisation to carry on the profession of preparing the returns of income in accordance with the provisions of this Scheme. However, persons referred to in clause (ii) or clause (iii) or clause (iv) of subsection
(2) of section 288, namely, any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings, any legal practitioner who is entitled to practice in any civil court in India and an accountant are not eligible to act as Tax Return Preparers. It may be noted that as per section 139B(3), an employee of the “specified class or classes of persons” is not authorized to act as a Tax Return Preparer. Therefore, it follows that employees of companies and persons whose accounts are required to be audited under section 44AB or any other law for the time being in force, are eligible to act as Tax Return Preparers.

Income Tax Refund for Asstt. Year 2011-12 issued w.e.f. 15.10.2013 by CBDT.

The CBDT has issued a letter to All the CCs IT (CCA) of Income Tax regarding issuing Income Tax Refund for Asstt. Year 2011-12 without any dealy on 20.09.2013.  For more details read the order No. F.No. 380/1/2013-IT(B)  dated 20th September, 2013 which is as below:

It is seen from the data available on AST that refunds for AY 2011-12 are pending.  These need to be issued at the earliest.  The same had been conveyed during the last Video Conference on 23.08.2013, but the progress so far has been tardy.

I have been directed to request to the take necessary action and direct the Assessing Officers to issue the refunds for AY 2011-12 without further delay.  I am also directed to request you to personally monitor the progress in the above respect and send a report on the matter by 15.10.2013 with reasons for non-issue of refunds, if any.

Fixation of salary in Public Sector Banks to re-employed ex-servicemen


GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
JEEVAN DEEP
10, PARLIAMENT STREET.,
NEW DELHI-110 001
F. No.4/1/2012-SCT (B)
Dear,
Please refer to your D.O. No 12(35)1211/D(Res-I) dated 24/04/2012 regarding grievances of ex-servicemen re-employed in Public Sector Banks for fixation of their salary in banks.
2. In this connection, I would like to mention that the Department of Financial Services had circulated instructions/directions/Circulars such as of the DoP&T’s earlier OM No. 3/19/2009-Estt.Pay II dated 8.11.2010 as well as the Ministry of Defence (MOD)’S letter No.1(4)/2007/D(Pen/Policy) dated 09.02.2011 to all Public Sector Banks(PSBs)/Financial Institutions (FIs) and Insurance Companies (ICs) for compliance.

3. The Indian Banks’ Association (IBA) sought clarification from DFS on re-fixation of pay to ex-servicemen re-employed in their Public Sector Banks on or alter 01.01.2006. Based on DoP&Ts O.M. dated 8.11.2010, it was pointed by this Department vide its letter No. 4/1/2010-SCT (B) dated 23.03.2012 that Ex-servicemen re-employed in banks who retired on/or after 01.01.2006 are eligible to pay fixation in banks based on the pay drawn by them at the time of discharge from the Defence Services which would include band pay plus grade pay but it does not include MSP. As it created confusion among banks over uniform implementation of the DoP&T’s Office Memorandum dated 08.11.2010 the circulars war treated as withdrawn.
4. It has therefore been reiterated that DoP&T’s above instructions may be followed in letter and sprit.
With regards,
Yours faithfully,
sd/-
(L.K. Meena)
Source: www.media.dgrindia.com

Submission of Form 14 by the spouse to the pension disbursing bank after the death of the pensioner.

Pensioner;s Portal Government of India has been issued an Office Memorandum regarding Submission of Form 14 by the spouse to the pension disbursing bank after the death of the pensioner.  The detailed office memorandum is as follows:

No.1/27/2011-P&PW(E)
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners' Welfare
3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi
Dated: 20th September, 2013
OFFICE MEMORANDUM
Sub: Submission of Form 14 by the spouse to the pension disbursing bank after the death of the pensioner - instructions reg.
The undersigned is directed to draw attention to the requirement of applying for family pension in Form 14 as given in rule 81 (2) (A) (ii) of the CCS (Pension) Rules, 1972.
2. This Department has been receiving representations from various quarters to do away with the condition of applying for family pension in Form 14 as it is causing inconvenience to widows, who find it difficult and embarrassing to present themselves before two Gazetted Officers/persons of repute for attestation of Form 14.

3. Before commencement of family pension, personal identification details of the spouse such as specimen signature, personal mark of identification and left hand thumb impression, proof of age/date of birth of spouse and an undertaking from him/her for recovery of excess payment are to be obtained by the bank. Form 14 serves as a standard processing sheet, which defines and delineates the exact requirement of information to be given to the pension disbursing Bank. It was apprehended that in the absence of this standard, the widows may be asked to submit any relevant or irrelevant information by the bank. This could also lead to delay in commencement of the family pension.
4. The matter has been examined and it has been agreed that in case the pensioner and spouse are holding a joint account, the possibility of claim for family pension from someone else does not arise. Therefore, in such cases, there is no requirement of Form 14. The spouse may inform the Bank of death of the pensioner and request the bank for commencement of family pension, through a simple letter. He/she may enclose a copy of death certificate of pensioner, PPO, proof of his/her own age/date of birth and an undertaking for recovery of excess payment. In other cases, i.e., where the pension is not being credited to the joint bank account of the pensioner and his/her spouse, Form 14 will be continued to be obtained by the banks. However, the condition of attestation of Form 14 has been done away with and witnessing by two persons has been considered as sufficient.
5. For all future cases, Head of Office will forward to the PAO, along with similar details for the pensioner, the specimen signature, personal mark of identification, left hand thumb impression, the proof of age/date of birth and an undertaking from the spouse regarding recovery of excess payment. After the death of the pensioner, the spouse of the deceased pensioner will be required to provide only death certificate to the paying bank, who will identify the spouse based on their formation given in the PPO and its own "Know Your Customer" procedures. Where the pensioner and his/her spouse do not have a joint account, Form 14 will be required as in para 4 above.
6. This issues with the concurrence of Department of Expenditure, vide their ID No. 601/E.V/2013, dated 13.09.2013.
(D.K. Solanki)
Under Secretary to the Government of India
Source : www.pensionersportal.gov.in

Compulsory Scrutiny during the Fin. Year 2013-14 New Amendment.

The Income Tax Department has issued an instruction No. 13/2013 dated 20th Sep., 2013 regarding Compulsory manual selection of cases for scrutiny during the Fin. Year 2013-14.  Earlier the department had issued an instruction No. 10/2013 dated 05.08.2013 u/s. 143 of the Income Tax Act, 1961 - Assessment - General Procedure and Criteria for Selection of Scrutiny Cases under Compulsory Manual Selection of Returns During Financial Year 2013-14.

I am directed to state that Instruction No. 10 of 2013 dated 05.08.2013 of CBDT on the above captioned subject is partially modified as under:-

In Para 3, after clause (i), following clauses(s) has been inserted:-
(j) Cases where registration u/s. 12 AA of the Income Tax Act has not been grated or has been cancelled by the CIT/DIT and the assessee has been found claiming Tax-Exemption under section 11 of the Income Tax Act.  However, the cases where such order of CIT/DIT has been reversed/Set-aside in appellate proceedings will not be picked up for scrutiny under this clause.
(k) Cases where order denying the approval u/s. 10(23C) of the Income Tax Act or withdrawing the approval already granted has been passed by the Competent-Authority and the assessee has been found claiming tax-exemption under the aforesaid provision of the Income Tax Act.

I am further directed to state that the above may be brought to the notice of all officers working under your jurisdiction for necessary compliance.

Who are File or Non-File of Income Tax Return u/s. 139(1) and u/s. 139(1C) ?

Specified class or classes of persons to be exempted from filing Return of Income [Section 139(1C)]

(1) Under section 139(1), every person has to furnish a return of his income on or before the due date, if his total income exceeds the basic exemption limit.

(2) For reducing the compliance burden of small taxpayers, the Central Government has been empowered to notify the class or classes of persons who will be exempted from the requirement of filing of return of income, subject to satisfying the prescribed conditions.

(3) Every notification issued under section 139(1C) shall, as soon as may be after its issue, be laid before each House of Parliament while it is in session, for a total period of thirty days. If both Houses agree in making any modification in the notification, the notification will thereafter have effect only in such modified form. If both Houses agree that the notification should not be issued, the notification shall thereafter have no effect.

Compulsory filing of return of income [Section 139(1)]

(1) As per section 139(1), it is compulsory for companies and firms to file a return of income or loss for every previous year on or before the due date in the prescribed form.

(2) In case of a person other than a company or a firm, filing of return of income on or before the due date is mandatory, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeds the basic exemption limit.

(3) Every resident and ordinarily resident having –
    (i) any asset (including financial interest in any entity) located outside India or
    (ii) signing authority in any account located outside India is required to file a return of income in the prescribed form compulsorily, whether or not he has income chargeable to tax.

(4) All such persons mentioned in (1), (2) & (3) above should, on or before the due date, furnish a return of his income or the income of such other person during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.

(5) Further, every person, being an individual or a HUF or an AOP or BOI or an artificial juridical person -
    − whose total income or the total income of any other person in respect of which he is assessable under this Act during the previous year
    − without giving effect to the provisions of Chapter VI-A
    − exceeded the basic exemption limit.
      is required to file a return of his income or income of such other person on or before the due date in the prescribed form and manner and setting forth the prescribed particulars.

For the A.Y.2013-14, the basic exemption limit is ` 2,00,000 for individuals/HUFs/AOPs/BOIs and artificial juridical persons, ` 2,50,000 for resident individuals of the age of 60 years but less than 80 years and ` 5,00,000 for resident individuals of the age of 80 years or more at any time during the previous year. These amounts denote the level of total income, which is arrived at after claiming the admissible deductions under Chapter VI-A. However, the level of total income to be considered for the purpose of filing return of income is the income before claiming the admissible deductions under Chapter VI-A.

(6) ‘Due date’ means -
    (a) 30th September of the assessment year, where the assessee, other than an assessee referred to in clause (aa), is -
        (i) a company,
        (ii) a person (other than a company) whose accounts are required to be audited under the Income-tax Act, 1961 or any other law in force; or
        (iii) a working partner of a firm whose accounts are required to be audited under the Income-tax Act, 1961 or any other law for the time being in force.

    (aa) 30th November of the assessment year, in the case of an assessee who is required to furnish a report referred to in section 92E.

    (b) 31st July of the assessment year, in the case of any other assessee.

Note – Section 92E is not covered within the scope of syllabus of IPCC Paper 4: Taxation. Section 139(1) has been amended to provide a different due date for assessees who have to file a transfer pricing report under section 92E (i.e. assessees who have undertaken international transactions). Therefore, reference has been made to this section i.e. section 92E for explaining the amendment in section 139(1).

e-Adhaar is sufficient Proof for New Opening Bank Account.

Reserve bank of India has issued a note regarding ID and Address proof opening new bank account with any CBS Bank.  It is saying that e-aadhar is the valid proof for opening a bank account and it fulfills both proof i.e. ID and address proof. Full note is as under.
  1. Please refer to paragraph 2.6 (B) of our Master Circular UBD.BPD. (PCB).MC.No.16 /12.05.001/2013-14 dated July 1, 2013 on Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Measures / Combating of Financing of Terrorism (CFT)/ Obligations of banks under PMLA, 2002 which states that letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number may be accepted as an ‘Officially Valid Document’. Further, in terms of paragraph 2.5 (ix) of the Master Circular, banks have been advised that while opening accounts based on Aadhaar, if the address provided by the account holder is the same as that on Aadhaar letter, it may be accepted as a proof of both identity and address.
  2. In order to reduce the risk of identity fraud, document forgery and have paperless KYC verification, UIDAI has launched its e-KYC service. Accordingly, it has been decided to accept e-KYC service as a valid process for KYC verification under Prevention of Money Laundering (Maintenance of Records) Rules, 2005. Further, the information containing demographic details and photographs made available from UIDAI as a result of e-KYC process (“which is in an electronic form and accessible so as to be KYC verification. The broad operational instructions to banks on Aadhaar e-KYC service are enclosed as Annex.
  3. UCBs are advised to have proper infrastructure (as specified in Annex) in place to enable biometric authentication for e-KYC.
  4. Physical Aadhaar card/letter issued by UIDAI containing details of name, address and Aadhaar number received through post would continue to be accepted as an ‘Officially Valid Document’.
  5. UCBs may revise their KYC policy in the light of the above instructions and ensure strict adherence to the same.

Additional 10% D.A. grant to Central Govt. Employee w.e.f. 01.07.2013.

Print ReleasePrintPress Information Bureau 
Government of India
Ministry of Finance 
20-September-2013 12:57 IST
Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013 
The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent. 

Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission. 
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014). 
PIB News

List of allowances would enhance once again by 25%.

Shortly DA would cross 100 percent. Once again, all allowances would enhance by 25%
As per the information received, unlike previous time, decision on DA would be taken by Cabinet Committee Meeting without delay. Subsequent to release of AICPIN for the month of June by Labor Bureau, Finance Ministry would send for the approval of the Cabinet for final decision on DA. After obtaining the approval, Finance Ministry would release the specific orders procedurally for disbursement of money.
Additional DA will be paid along with the salary of this month
The arrears for the month of July and August would also be paid. With the increase of DA by 10%, the total amount of DA would enhance and stay at 90%.

By next year, it would cross 100%. During that period, as pointed out in the 6th Central Pay Commission, certain allowances would enhance by 25%. But, that is not the expectations of the Central Government Employees. Their requirements are merger of DA with Basic Pay.
Towards this matter, Central Government has briefed on many occasions in the Parliament.
At present, Central Government is thinking of bringing change in the AICPIN calculation system. In which way, this would pose impairment can not be ascertained at present. Not only the Central Government Employees but also the State Government employees anticipate the announcement of increase of DA percentage. This has become an eager expectations of more than a crore of employees.
As per the last 5th Central Pay Commission recommendations, once the DA crosses 50%, that has to be merged with Pay. But it is a sorrowful affair that such type of recommendation is not made in the 6th Central Pay Commission. 
Instead of this, the recommendation for enhancement of some allowances by 25%, given, which would not be sufficient.
The expectation of the Central Government Employees is merger of DA with basic pay once it crosses 100%.
Whether this expectation would materialize?  
The allowances which are going to by hiked are as given below:
1. Children Education Allowance including Hostel Subsidy, etc.
2. Special Allowance
3. Cash Handling Allowance
4. Washing Allowance
5. Split Duty Allowance
6. Bad Climate Allowance
7. Special Compensatory (Remote Locality) Allowance
8. (a) All components of Daily allowance on tour, 
    (b) Mileage Allowances for road and bicycle journeys on tour
9. Special Compensatory (Hill Area) Allowance
10. Special Comp. Scheduled Tribal Area Allowance
11. Project Allowance
12. Fixed Conveyance Allowance
13. Cycle Maintenance Allowance
14. Special Allowance for Child care for women with disabilities
15. (a) Advance for purchase of Bicycle 
      (b) warm Clothing Advance 
      (c) Festival Advance 
      (d) Natural Calamity Advance
16. Desk Allowance
Source : www.employeesorders.com

What are the legal consequences with bounced Cheques ?

A cheque is a negotiable instrument in India and is normally valid for three months from its date. Cheque bouncing is one of the most common offences in the country, with over 40 lakh pending cases in the Supreme Court. A cheque is said to be bounced when the payment stated on it is not made and it is dishonoured.

A cheque can bounce for several reasons, which include insufficiency of funds, mismatch in signature, stale cheques, post dated cheques or if there are corrections in the cheque without authentication. The bank collects a penalty from the defaulter when a cheque bounces.

The important point here is that when a cheque bounces, it is a criminal offence in India. Therefore under the Negotiable Instruments Act, 1881, the person who had issued the bounced cheque is punishable by heavy fine and jail term also.

What is the legal remedy you have if you have been issued a cheque which gets bounced?

Almost every bank gives a ‘cheque return memo’ along with the returned cheque stating the reason for the bounce. If you hold the cheque, you need to inform this to the drawer and ask if you can re-present it to the bank within the 3 months period. If cheque is dishonoured even the second time, then you can take legal action. As a first step, you can send a legal notice to the defaulter within a period of 30 days from receiving the cheque return memo. The notice should contain all necessary facts of the matter, including the details of the first time the cheque was dishonoured. The defaulter needs to make a fresh payment within a period of 15 days from the receipt of this notice. However, if he still doesn’t make the payment within this time period, then you can file a complaint in the magistrate court. This case should be filed within a maximum period of 1 month from the date of expiry of the 15 days time period.

Remember that the complaint should be filed within the time frame specific. If this is not done, then the case will become time barred and will not be entertained. When your case comes for hearing, the defaulter can be punished with a jail term for two years and/or a penalty which can be upto twice the cheque amount. The defaulter can appeal against the order within a period of 1 month of judgement.

Case 1: Bouncing of a rent cheque: In India, it is common practice for the landlord to take post dated cheques from the tenant. In case a rent cheque bounces, the landlord can follow the above procedure to recover the dues from the tenant. Sometimes, it may so happen that the tenant does not have the funds simply because the landlord did not drop the cheque at the expected time. Therefore, the landlord is bound to first inform the tenant and only then proceed with the legal process. There may be another case when the tenant wishes to set off an amount from a particular month’s rent towards some expense he incurred on behalf of the landlord, which the latter refuses to pay. If there is a cheque bounce because of this, the criminal case will continue against the tenant till he is able to establish that there was a legitimate set off.

Case 2: Bouncing of an EMI payment: When a cheque meant for an EMI payment on a loan is dishonoured, the bank can also file a case against the defaulter. However, banks do not do this as the first step. Firstly, hefty penalties, loan default charges and cheque bounce charges are levied. These keep building up for every month of default and added to the EMI amount. Also, the defaulter’s credit rating gets affected with every default he makes. In case of secured loans, banks also have the security as collateral. If the borrower does not make payments even after repeated reminders, the bank can give sufficient notice and auction the security to recover the dues.

Case 3: Bouncing of a cheque in a business transaction: If you receive a cheque from a business debtor and this gets bounced, then you should follow the above procedure to recover dues. In case of bounced cheques in business transactions, the added penalty would be the loss of face in business circles, affecting your reputation and business deals.

Considering the huge number of pending bounced cheque cases in the courts, the Government is mulling to amend the Negotiable Instruments Act which will restrict the payee from taking the defaulted person to court. According to news reports, such a person who has defaulted in making the payment will not face jail term and the cases will be handled only through arbitration and settlement by Lok Adalats. This proposal has come under criticism from the common man, as it is believed that this will only increase cases of payment default. A more stringent and rigorous punishment should be put in place to reduce instances of bounced cheques in the country.

Source :- http://in.finance.yahoo.com

Mandatory requirement of furnishing PAN in all TDS statements u/s. 206AA

The non-quoting of PAN by deductees in many cases have led to delay in issue of refund on account of problems in the processing of returns of income and in granting credit for tax deducted at source.
 
With a view to strengthening the PAN mechanism, section 206AA provides that any person whose receipts are subject to deduction of tax at source i.e. the deductee, shall mandatorily furnish his PAN to the deductor failing which the deductor shall deduct tax at source at higher of the following rates –
  • the rate prescribed in the Act;
  • at the rate in force i.e., the rate mentioned in the Finance Act; or
  • at the rate of 20%.
For instance, in case of rental payment for plant and machinery, where the payee does not furnish his PAN to the payer, tax would be deductible @20% instead of @2% prescribed under section 194I. However, non-furnishing of PAN by the deductee in case of income by way of winnings from lotteries, card games etc., would result in tax being deducted at the existing rate of 30% under section 194B. Therefore, wherever tax is deductible at a rate higher than 20%, this provision would not have any impact.

Tax would be deductible at the rates mentioned above also in cases where the taxpayer files a declaration in Form 15G or 15H (under section 197A) but does not provide his PAN.

Further, no certificate under section 197 will be granted by the Assessing Officer unless the application contains the PAN of the applicant.

If the PAN provided to the deductor is invalid or it does not belong to the deductee, it shall be deemed that the deductee has not furnished his PAN to the deductor. Accordingly, tax would be deductible at the rate specified in (ii) above.

These provisions will also apply to non-residents where tax is deductible on payments or credits made to them. However, the provisions of section 206AA shall not apply in respect of payment of interest on long-term infrastructure bonds, as referred to in section 194LC, to a non-corporate non-resident or to a foreign company.

Both the deductor and the deductee have to compulsorily quote the PAN of the deductee in all correspondence, bills, vouchers and other documents exchanged between them.

How much Gratuity, Voluntary Retirement and Commuted Pension is Exempted from Income Tax?

Where retirement benefits as gratuity is received more than once, either from one employer or more than one employer, or either in the same previous year or over several previous years, then the total gratuity exemption cannot exceed the statutory limit applicable as on the date of his retirement or becoming incapacitated prior to such retirement or his death or whose employment is terminated on or after that date.

Pension refers to an arrangement to provide the employee with an income when he is no longer earning a regular income from employment, i.e., post employment.

Such pensions are normally in the form of monthly or annual payments, i.e., Un-commuted Pension. However, at the option of the Employee, such monthly / annual pensions can be received in lump sum, either in one time or more than one time, i.e., Commutation of Pension.

Gratuity :

GRATUITY – SECTION 10(10)
a) Any Death-cum-Retirement gratuity to Govt. Employees : Wholly exempt.

b) Any gratuity received by the employees covered under Payment of Gratuity Act, 1972. Least of the following is exempt:-
  • 15 days salary (7 days in case of seasonal employment) for each completed year of service or part in excess of 6 months.
  • Rs. 3,50,000.
  • Amount of gratuity actually received
c) Any other gratuity, (not covered under (a) or (b)): Least of the followings is exempt:-
  • Rs 3,50,000
  • Half month’s salary for each completed year of service
  • Amount of gratuity actually received.
Voluntary Retirement :

PAYMENT RECEIVED ON VOLUNTARY RETIREMENT SECTION 10 (10C):

Any amount received by an employee of a Public Sector Company or of any other company at the time of voluntary retirement is exempt to the extent such amount does not exceed Rs. 5 lacs, provided the scheme of such voluntary retirement is in accordance with the guidelines prescribed under rule 2BA of Income Tax Rules 1962. If an exemption has been allowed under this section for any assessment year, no exemption there under is allowable in relation to any other assessment year. Further, the benefit of the exemption has been extended to employees of an authority established under a Central, State or Provincial Act, or a local authority or to employees of a Co-operative society, university, Indian institute of Technology and notified Institute of Management.

Commuted Pension :

A) Government Employees : Wholly exempt.

B) Non-Govt. Employees :
  • Where the employee receives gratuity, amount not exceeding the commuted value to the extent of 1/3rd of the pension is exempt.
  • In other cases : the commuted value of ½ of pension is exempt.

Yearly Increment do not Grant if Confidential Reports not wrote by Employee.

Maharashtra Government has been issued a resolution about yearly increment to employee.  The G.R. No. Sankirn-1013/Pra.Kra.55/Kosha Pra-5 Dated 12th Sept., 2013 say that do not grant the yearly Increment to the officers who did not wrote the confidential reports in time.

The yearly increment had place in the month of July to all eligible employee of State Government, Semi-state Government and other Government Employee but after this resolution Officers did not placed Yearly Increment to Employee in July without Confidential Report.  Therefore, every employee submit their Confidential Report before 30th June in every Year  otherwise such employee face the problem of yearly increment.

The following picture show the certificate when yearly increment place by officer to employee.



Download Government Resolution (Click Here)

Which investments are eligible for deductions u/s 80C for Asstt. Year 2014-15?

There are different tax deductions available to an individual under different Sections of the IT Act. Section 80C for example has a deduction limit of Rs. 1 lakh per annum.

You can save tax by making use of the various deductions available to you under different sections of the IT Act i.e. investing in these instruments.

The maximum deduction under (80C, 80CC, 80CCD), 80CCF and 80D put together is Rs. 150000 that is Investment limit for financial year 2011-12 under section 80C (Rs.1,00,00)+ (80CCF) 20,000 + (80D)30,000.  The season of tax has arrived. Therefore , there is need for easy chart of all tax deduction u/s 80c to 80U for an Individual taxpayer?Under Income tax, deduction u/s 80C, 80CCC, 80D, 80DD, 80DDB, 80G, 80GG, 80GGA, 80GGC, 80IAB, 80IB, 80IC, 80ID, 80IE, 80JJA, 80QQB, 80RRB, 80U etc.

The following investments/payments are inter alia eligible for deduction u/s 80C:-
Nature Of Investment
Remarks
Life Insurance Premium
For individual, policy must be in the name of self or spouse or any child’s name. For HUF, it may be on life of any member of HUF.
Sum paid under contract for deferred annuity
For individual, on life of self, spouse or any child of such individual.
Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self, spouse or child
Payment limited to 20% of salary.
Contribution made under Employee’s Provident Fund Scheme
-
Contribution to PPF
For individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
Contribution by employee to a Recognised Provident Fund.
-
Subscription to any notified securities/notified deposits scheme.
-
Subscription to any notified savings certificates.
e.g. NSC VIII issue.
Contribution to Unit Linked Insurance Plan of LIC Mutual Fund
e.g. Dhanrakhsa 1989
Contribution to notified deposit scheme/Pension fund set up by the National Housing Bank.
-
Certain payment made by way of instalment or part payment of loan taken for purchase/ construction of residential house property.
Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
Subscription to units of a Mutual Fund notified u/s 10(23D)
-
Subscription to deposit scheme of a public sector company engaged in providing housing finance.
-
Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
-



Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education.
Available in respect of any two children.
Any term deposit for a fixed period of not less than five years with the scheduled bank.
This has been included in Section 80C by the Finance Act 2006.
Subscription to notified bonds issued by NABARD
This has been included in Section 80C by the Finance Act 2007 and has come into effect from 1.4.2008.
Payment made into an account under the Senior Citizens Savings Scheme Rules, 2004
This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009.
Payment made as five year time deposit in an account under the Post Office Time Deposit Rules, 1981
This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009.
It may be noted that the aggregate amount of deductions under sections 80C, 80CCC and 80CCD are subject to an overall ceiling of Rs.1 lakh.