Gsoftnet

CPC (TDS) suggest to Deductors to Pay Outstanding Demands related u/s. 234E.

As per the records of Centralized Processing Cell (TDS), the TDS Statement(s) for some of the quarters have not been submitted within the prescribed due date. 
  
Intimation u/s 200A of the Income Tax Act, 1961 intimating an outstanding demand for the relevant quarters, including demand under section 234E towards Fee for delayed filing of TDS Statement(s), have already been sent by CPC (TDS) on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement. 
  
Your attention is hereby drawn towards the provisions of section 234E of the Act, which reads as follows: 

Levy for Late filing of TDS Statement (Section 234E of Income Tax Act)

  1. Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues. 
  2. The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be. 
  3. The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C. 
  4. The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012 

You are advised to pay the outstanding demand at an early date to avoid Penal Interest u/s 220(2) of the Act apart from intimation of other recovery proceedings as per Income Tax Act, 1961. If the demand has already been paid, you are requested to file a Correction Statement by tagging the challan and the Justification report can be verified for closure of demand, if the revision has already been submitted and processed. 
  
How to pay the demand?
  
The following steps shall help you analyze and pay the demand: 

  • Download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for assistance on downloading the Justification Report. 
  • Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available 
  • Download the Conso File from our portal. Please use the e-tutorial for necessary help. 
  • In case of payment towards late filing fee, please Tag the challan towards the payment, in the “Fee” column” (Column Number 305 for 24Q, 404 for 26Q, 706 for 26Q) using RPU Ver. 3.8, mentioning appropriate amount in such column and validate to generate the FVU. 
  • Submit the Correction Statement at TIN Facilitation Centre. 
  • The demand can also be paid by using the Online Correction facility. Please refer to the e-tutorial for assistance. 

For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344. 
  
CPC (TDS) is committed to provide the best possible services to you. 

CPC (TDS) TEAM 
  
Notes: 

  • Please maintain updated email address and Contact Number on TRACES to receive regular periodic updates and guidelines from TRACES. 
  • Please refer to our FAQs and e-tutorials for detailed screen-driven assistance, before seeking further help. 

AIRF writes to Finance Ministry for Merger of Dearness Allowance before 7th Pay.

All India Railwaymen’s Federation
(Estd. 1924)
4, State Entry Road,
New Delhi-110055
INDIA
No.AIRF/13
Dated: January 9, 2014
The Secretary(Exp.),
Ministry of Finance,
(Government of India)
North Block,
New Delhi

Dear Sir,
Reg.: Merger of Dearness Allowance with Pay

On the persistent forceful demand of the Central Government employees, including Railwaymen, successive Central Pay Commissions were appointed by the Government of India with a view to improve upon wage structure and to grant parity with other employees of the Public Sector Undertakings in the wake of market inflation and price hike of essential commodities. These Pay Commissions, while recommending revised pay structure have also recommended grant of Dearness Allowance on the basis of increase in the Price Index.

The very purpose of compensating the pay with payment of Dearness Allowance is being defeated because of unbridled inflationary pressure on the economy and the consequent steep rise in the price of essential commodities.This has resulted in erosion of the value of the wage, remarkably beyond tolerable limit, as a consequence of which, payment of Dearness Allowance has failed to compensate devaluation of pay.

While Dearness Allowance was merged with the pay on crossing the percentage beyond 50% during V CPC as the actual value of wage devaluated because of market hike to compensate eroded value of the wages besides payment of Dearness Allowance, but this time Dearness Allowance, which has already gone beyond 80% w.e.f. 1st July, 2013, is yet to be merged with the pay.

It would, therefore, be quite appropriate and in the fitness of the thing that Dearness Allowance is merged with the pay for all purposes to compensate the erosion in the wage in the wake of market inflation and steep price hike of essential commodities which are posing serious constraints in the livelihood of the Govern employees in general and the low-paid employees in particular.

Yours faithfully,
sd/-
(Shiva Gopal Mishra)
General Secretary

Source: AIRF

Relief u/s. 54F isn’t allowable if assessee owns more than one residential house.

There is no bar in section 54 or in section 54F against claiming exemption for time for the same property if the cost of the property is within the kimit arisen to the assessee. 

Where an assessee on date of transfer of original asset, owns more than one residential house, he is not eligible for deduction under section 54F, even if other residential house is owned by assessee wholly or partially.

In fact, conditions under both the section is different and therefore both these provisions are for different situation.  Hence, if conditions of the said provisions are fulfilled, claim of exemption shall lie even if only one property is purchased to claim the LTCG arisen on sale of different assets.  It is settled principal that section 54 & 54F are relief mechanism and therefore,if the conditions are fulfilled, the exemptions are allowable.

The basic question is whether exemption u/s 54 for 1st year & u/s 54f for 2nd year for the purpose of the same property is admissible or not ? There is nothing in the Act that prohibits claim under section 54 & 54F simultaneously.

Indefinite strike from 17th Feb 2014 declared by 3 Defence Federations on behalf of 7th Pay.

Serving Strike Notice by Individual Affiliated Unions on 03.02.2014
Indefinite Strike Commencing from 17.02.2014. 6.00 A.M.

INTUC
INDIAN NATIONAL DEFENCE WORKERS FEDERATION

INDWF/Strike/3001/2014
Dt. 28.01.2014

To
All Affiliated Unions of INDWF
Office Bearers & Working Committee Meeting of INDWF

Sub. : Indefinite Strike

Dear Colleagues,

Three Recognised Defence Federations (INDWF, AIDEF & BPMS) have jointly decided and issued a Joint Declaration on 19.09.2013 to call for a Joint Agitation by the Defence Civilian Employees including of a indefinite strike. Notice of the Joint Declaration was sent to Defence Secretary Dt. 19.09.2013 alongwith the charter demands. The Joint Declaration and the programme of action together with the charter of demands was sent to all our affiliated unions for conducting Strike Ballot. Accordingly strike ballot was conducted by our affiliated unions as per our programme on 19.12.2013 and reports were sent to the Federation HQrs. It has been observed as per reports that more than 98% of the Defence Civilian Employees all over the country have voted in favour of the indefinite strike as the demands are very much genuine and long pending.

After receiving the reports of the strike ballot, we have sent further intimation to the secretary, Ministry of Defence that the majority employees have supported the strike and the Ministry of Defence should settle the problems forth with failing which, the Defence Civilian Employees will go on indefinite strike and the date for strike will be intimated.

Three recognized Federation have met at New Delhi on 27.01.2014 and noted with serious concern that even after more than 4 month after forwarding the Joint Declaration alongwith charter of demands, there is no progress in settlement of the issues pertaining to Defence Civilian Employees and the Govt. has not taken any step forward for a negotiated settlement/Agreement on the charter of demands.

Considering the negative attitude of the Government and Ministry of Defence towards the demands of the Defence Civilian Employees and its negligence, three Federations have decided in the meeting held on 27.01.2014 at New Delhi to organize Defence Civilian Employees for an indefinite strike starting from 17.02.2014 from 0600 AM in support of the following charter of demands. The meeting also calls upon the affiliated unions of the three Federations to jointly mobilize the Defence Workers by various agitational programmes during the period of serving strike notice on 03.07.2014 and make the strike a grand success.

The meeting also appeals to the CDRA, its affiliates and all other trade unions and associations functioning in the Defence Establishments to join the indefinite strike in the interest of unity of the Defence Employees and also realize the out standing demands of the Defence Civilian Employees.

Serving Strike Notice by Individual Affiliated Unions on 03.02.2014
Indefinite Strike Commencing from 17.02.2014. 6.00 A.M.

CHARTER OF DEMANDS

Demands on Service Matters

1) Grant of 2nd / 3rd MACP in Grade Pay Rs. 4600/- to the Artisan Staff of Defence Establishments who were granted 2nd ACP in the Chargeman Pay Scale of Rs. 5000-8000 upto 31.12.2005 (inspite of MoD’s recommendation matter is pending with Defence Finance)

2) Correlation of the hourly rate of Industrial Workers deployed on Piece Work system in Ordnance Factories in 6th CPC Pay Scale w.e.f. 01.01.2006 (inspite of MoD’s recommendation matter is pending with Defence Finance)

3) Grant of Departmental Overtime Wages to the Industrial Workers deployed on Piece Work system in the Ordnance Factories (inspite of MoD’s recommendation matter is pending with Defence Finance)

4) Grant of hourly rate to the Piece Workers of Ordnance Factories who were given MACP benefits, (inspite of MoD’s recommendation matter is pending with Defence Finance)

5) Grant of revised ACP benefits to the labourers who have completed 30 years of service by granting an one time exemption of Trade Test. (MoD’s recommendation in the matter is pending with DOP&T)

6) Grant of revised ACP benefits to the erstwhile Group “D” NIEs (MoD’s recommendation in the matter is pending with DOP&T)

7) Revision of Night Duty Allowance w.e.f. 01.01.1996 and from 01.01.2006 in the 5th and 6th CPC rates respectively by implementing the Court Judgments on the subject.

8) Doubling of the Risk Allowance for Defence Civilian Employees w.e.f, 01.09.2008 has agreed in the National Anomaly Committee Meeting.

9) Implementation of the following judgment to the similarly placed employees. As per the provisions of DOP&T OM No. A11019/2/98-AT dated 03rd September, 1998

i) Grant of MACP in promotional hierarchy (Government’s SLP dismissed in the case of CAT Chandigarh Bench Judgment on OA No. 1038/CH of 2010)-

ii) Placement from HS Grade to HS Grade-I should be ignored for . granting MACP (Judgment of CAT Principal Bench New Delhi in the case of Employees of 505 ABW, New Delhi referring various Supreme Court Judgments)

iii) Restoration of the opportunity of Chowkidars and Safaiwalas of MES for redesignation as Mate (SS) (Judgment of the Hon’ble CAT Ernakulam Bench in OA No.109/2012 dated 12.12.2012)

iv) Removal of discrimination and grant of skilled pay scale of Rs. 260-4000/950-1500 to non-petitioner Valvemen of MES (Judgment of Hon’ble CAT Jodhpur Bench in OA No. 51/2002 dated 21st July, 2003)

v) Inclusion of HRA and Transport Allowance etc. for computation of OT Wages under Factories Act 1948 based on the judgment of Madras High Court, vi) Implementation of higher Pay Scale and grade structure for the similarly placed Cooks of all Defence Establishments as granted to the Cooks of Air Force vide MoD Letter No. Air HQ./23064/Cooks/PC-4/444-CC/D (Air-!II) dated 12th November, 2013 based on the judgment of Hon’ble Principal Bench CAT, New Delhi.

10) Approval of all cadre review proposals of MTS, Durwan, Fireman, Drivers, Storekeeping Staff, Industrial Canteen Staff, Para Medical Staff, Stenographers, DEO, JJWM and Clerical Staff of OFB, DRDO, DGQA, Navy, EME, AOC, Air Force and other Directorates pending at different level.

11) Grant of PRIS to the DRDO Employees at par with Department of Atomic Energy and ISRO.

12) Revision of Fixed Medical Allowance to the Defence Employees posted at hard stations / isolated places and also grant of medical reimbursement for inpatient treatment for such employees by implementing the judgment of Punjab and Haryana High Court.

13) Grant of Four Grade Structure to the Ammunition Mechanic of NAD under Navy.

14) Grant of Four Grade Structure to the Meter Reader of MES at par with the Artisan Staff,

15) Extension of CSD Canteen facilities for retired defence civilian employees at par with Ex-Serviceman.

16) Revision of Bonus Payment ceiling and Gratuity Ceiling limit.

17) Opening of CGHS Dispensaries in all major cities and recognition of Hospitals under CGHS in Hill Stations.

DEMANDS ON POLICY ISSUES

1) Withdraw DPP-2013 which is against the interest of DRDO and Ordnance Factories.

2) No FDI in Defence Sector.

3) No disturbance in the functioning of DRDO by implementing Professor Rama Rao Committee recommendations.

4) No arbitrary reduction of manpower in the various Army Units in the name of ASEC Report in violation of the Cabinet Secretary’s directions.

5) No closure of any Defence Units including Military Farms,

6) Stop all types of outsourcing / contract and regularize all the existing contract/casual workers.

7) Fillup all the posts lying vacant in all the Defence Establishments.

8) Withdraw the New Pension Scheme.”

9) Grant of Compassionate Appointment 100% as being granted by the Railway Ministry.

10) No reduction of sanctioned strength of the Ordnance Factories based on Sourab Kumar Committee Report.

DEMANDS ON TRADE UNIONS RIGHTS AND FUNCTIONING OF JCM

1) Regular meeting with the recognized Federations by the MoD and other Directorates should be ensured.

2) Three meetings of the Departmental Council (JCM) and four meeting of the JCM-III Level Council as per the constitution of the JCM Scheme should be ensured.

3) Grant of Trade Unions rights to all the non gazetted employees working. in the Defence Establishments as being given in the case of Railway.

4) Grant of Trade Unions rights to the Employees of Hospitals and Training Establishments under MoD since these Establishments are already recognized as Industry by the Labour Ministry.

5. Grant of Trade Unions rights to the Defence Civilian Employees postedat area declared under SRO-17E.

DEMANDS ON 7th CPC ISSUES

1) Settle all the 6th CPC Anomalies and all Cadre review proposals before 7th CPC starts functioning.

2) Accept all the terms of reference of 7th CPC submitted by the staff side of National Council (JCM) to the DOP&T.

3) Implement the revised comprehensive pay packet for the Central Government Employees as on 01.01.2014.

4) To Consider the demand of merger of Dearness Allowance/Dearness Relief with Basic Pay and Basic Pension and also grant of interim relief.

The 4 lakhs Defence Civilian Employees who are the fourth force of the Defence of our country are committed and dedicated workforce and they work side by side with the uniformed personnel for the security of our great natioi. Their contribution to the Defence preparedness cannot be underestimated. Any disturbance in the industrial relations in the Defence Estatlishments will hamper the Defence preparedness. The Defence Civilian Employees and their Trade Unions with this responsibility in mind were patiently waiting for settlement of their demands. However, since there is no positive outcome inspite of our best efforts, the Defence Civilian Employees are forced to proceed with an indefinite Strike from 17.02.2014

Yours sincerely,
sd/-
(R.SRINIVASAN)
GENERAL SECRETARY

Source : www.Indwf.blogspot.in

e-TDS/TCS Return (Form 27A) is mandatory through FVU (Ver. 4.1) w.e.f. 01.02.2014

The TIN-NSDL has changed the procedure of e-TDS/TCS Return file for Asstt. Year 2014-15 and effected from 01.02.2014.  The Major changes has been takes place by NSDL in e-TDS/TCS Return Filing by FVU for quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards i.e. Asstt. Year 2014-15, and while creating FVU file, TDS Deductor/Collector Form 27A is also generated by NSDL FVU Ver 4.1 Utility. Now a days there are many softwares for e-TDS/TCS Return, apart from this TIN-NSDL published Free FVU utility to their TAX Deductor or Collector,which is required to be filed along with e-TDS/TCS FVU file. 
"With effect from February 1, 2014, it is mandatory to submit Form 27A generated by TDS/TCS FVU (File Validation Utility) duly signed, along the TDS/TCS statement/(s). Any other Form 27A submitted will be treated as invalid submission and the same will be rejected by TIN-FC branches. (27/01/2014)"

Major changes are as under:


  • Deletion of deductee record: Feature to delete the deductee record has been discontinued. In case the user wishes to nullify a deductee record/ transaction, he is required to update the amount and related fields to “0” (zero) and add new record with updated values. 
  • Date of deduction: Date of deduction in deductee record should not be that of previous quarter. Example if the statement pertains to Q3 of FY 2013-14, then the date of deduction should not be lower than 01/10/2013.
  • Generation of Form 27A: New feature has been enabled wherein Form 27A is generated on validation of statement by TDS/TCS FVU.
  • Applicability of FVU version: FVU version 4.0 and 4.1 are applicable upto January 03, 2014 and from January 04, 2014 FVU version 4.1 would be mandatory.

Free Download NSDL FVU Ver. 4.1 for Form 27A

Tax-liability & Exemption on Medical Reimbursement or Treatment.

MEDICAL REIMBURSEMENT EXEMPTION

A company was paying a fixed sum of 1250/- per month to his employees in advance against of medical reimbursement and if bills has been submitted by the employees during the year ,then giving exemption to them up to expenses incurred by them(Subject to maximum Rs 15000/- per annum ), from income tax while calculating the TDS deductible.

Assessing officer has treated assessee as "assessee in default" for non deduction of Tax on medical allowance paid in advance to employee and exemption was given on bill submission for calculating the TDS on salary income.CIT(A) decided case in favour of assessee and later on ITAT has also dismissed the appeal of revenue and decided the case in the favor of assessee/deductor.

IT: Employer was not at fault for not deducting tax at source from medical allowances paid to its employees before incurring of actual medical expenditure. It couldn't be deemed to be in default for non-deduction of tax on medical reimbursements if it has made bona fide estimate of taxable salary of its employees

Facts


  • The payments made by assessee to its employees every month included a component towards medical expenditure;
  • Assessing Officer treated assessee as an 'assessee-in-default' for not deducting tax at source from medical reimbursements upto Rs. 15,000 paid to the employees;
  • In this regard, AO held that the payment of medical expenditure had not to precede the actual incurring of the expenses and it should be only by way of reimbursement;
  • On assessee's appeal, the CIT(A) quashed the order of the AO;
  • Aggrieved revenue filed the instant appeal against the order of CIT(A).

Held:The Tribunal held in favour of assessee as under:

  1. Section 192(1) of the Act requires tax to be deducted at an average rate of income-tax in force on estimated income under the head salaries. It was for the employer to prove that the allowances and perquisites given to the employees were tax-free and not to be included in the salary;
  2. The reliance placed by AO on the expression 'actually incurred' found in proviso to section 17(2) was not relevant while ascertaining the quantum of tax to be deducted at source under section 192;
  3. The exemption in respect of medical expenditure was to be restricted to expenditure actually incurred by the employees, or Rs. 15,000 whichever was lower. The exemption was to be granted even if the payment preceded the incurrence of expenditure;
  4. Though the allowance paid by the assessee to the employees would not form part of taxable salary of an employee, yet if the employer was required to deduct tax at source treating it as part of salary, then that would be contrary to the provisions of section 192(3) of the Act;
  5. The liability of the person deducting tax at source couldn't be greater than the liability of the person on whose behalf tax at source was deducted;
  6. No tax could be recovered from the employer on account of short deduction of tax at source under section 192 if a bonafide estimate of salary taxable in the hands of the employee was made by the employer;
  7. Thus, the order passed by the AO was rightly quashed by the CIT(A).

Know more information regarding Medical Reimbursement or Treatment

Free Download New PAN Application (Form-49A) w.e.f. 03.02.2014

The procedure for PAN card application will be changed w.e.f. 03.02.2014. From this date, every PAN applicant has to submit self-attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.


As per the new PAN allotment process which will effect from 03.02.2014 applicant of PAN application must file original documents at the time of PAN verification by PAN application counters.


DOWNLOAD NEW PAN APPLICATION (EXCEL FORMATE)

Silent Features of TDS or TCS for Asstt. Year 2014-15.

CBDT had issued many circulars/notification regarding collection of Tax as TDS or TCS. First of all, Tax Deductee or Collectee knows "Tax Collection Mechanism". An assessee requires to pay tax on his income by way of Direct Payment by assessee u/s. 191 as an Advance Tax or Self Assessment Tax as well as when Taxpayee has pay tax on his taxable income by way of TDS or TCS u/s. 192 to 196D it is part of collection of TAX.

TDS ON SALARY
  • The salaried employee may deduct Income Tax as TDS on his annual taxable income.
  • Deduct at Average rate of Income Tax compute on the basis of rate in force
  • TDS has to be deducted at the time of Payment (Not on due basis)
  • Employee may furnish details of other income to employers to deduct higher tax. (Losses will not be adjusted other than loss from House property)
  • Two employer or more employer details of previous employer may be collected in the prescribed format.
  • 80G deduction to be ignored while calculating avg. tax rate.
TDS ON INTEREST ON SECURITIES
  • TDS Rate 10% (Limit Rs 5000/-)
  • No TDS on certain Govt. sponsored Bonds  savings certificates. Interest on Securities payable to LIC, GIC etc.
  • Debenture interest payable to Individual and HUF by a public company limit Rs. 5000.
  • Payment by A/c Payee cheque
TDS ON DIVIDENDS
  • Dividends are exempt u/s 115-O. – No TDS
  • Dividend other than 115-O dividend TDS has to be deducted. Limit Rs 2500/- 
  • No TDS on Dividend payable to LIC, GIC Principle officer of Indian co. is required to deduct tax on deemed dividend u/s.2(22)(e) @ 10%.
TDS OTHER THAN ON SECURITIES
  • Rate of TDS 10% (Limit – Rs. 10,000/- for Bank, Co-Op Soc., Post Office) and (Limit – Rs. 5,000/- for any other case) Accrual basis
TDS UNDER SECTION 194B-194BB
  • 194B- WINNING FROM LOTTERY OR CROSS WORD PUZZLES : 
  • Limit > Rs.10000 
  • Rate-30%
  • 194BB-WINNING FROM HORSE RACES
  • Limit > Rs. 5000 
  • Rate-30%
TDS ON PAYMENTS TO CONTRACTORS
Tax is to be deducted at source:
  • On the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
  • On the whole of the invoice value, if the value of the material is not mentioned separately in the invoice.
TDS rate
  • 1% where payment/credit is to an individual/HUF
  • 2 % where recipient is any other person.
PAYMENTS TO CONTRACTORS U/s. 194C
  • If the credit or the payment in pursuance of the single contract does not exceed Rs.30,000/-, no deduction has to be made at source.
  • However , if the aggregate of all amounts paid/credited or likely to be paid /credited exceeds in F. Y. Rs. 75,000/- then tax at source is to be deducted.
  • Individual/HUF covered under the Tax Audit U/s 44AB(a) or 44AB(b) are  specified persons.
  • Individual/HUF covered under the Tax Audit U/s 44AB(d)  as required by Section 44AD(5) are  not specified persons.
All other persons have been covered under the definition.
  • No TDS on Transporters if PAN is provided
Work’ shall include:
Advertising;
  • Broadcasting and telecasting including production of programmes for such broadcasting or telecasting 
  • carriage of goods or passengers by any mode of transport other than by railways
  • catering ;
  • manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, 
  • If material purchased from others- it’s not work
Other TDS Sections
  • 194D (Resident) (Insurance Commission > Rs.20,000  10%)
  • 194E (NR) Sportsmen, Sport Association, Entertainer - 20%
  • 194G (R/ NR) Commission on Sale of Lottery Tickets  > Rs.1,000  10% 
  • 194H (Resident) Commission or Brokerage > Rs.5,000   10%
  • Section 194-I, RENT Rent > Rs.1,80,000 p. a. 
  • Rent of Plant & Machinery  @2%
  • Rent of Land, Building, Furniture, etc. @10%
  • Payment or credit whichever is earilier Limit of Rs 180000  applies upon the payee.                         
Section 194IA- Payment for non-agriculture land and building or its part
Applicable from 1.06.2013

  • Transferee or buyer will deduct TDS @ 1%
  • TDS is based on the consideration of the property being transferred.
  • In case of co-owned property of > 50.00 Lac TDS will be deducted by all the buyers of all the sellers.
  • PAN Compulsory of all the parties.
  • No PAN-   TDS @ 20% would apply
  • TAN  of the deductor (s) not required
  • Form No 26QB Challan cum statement
  • Form No 16B : TDS certificate

Section 194J-Fees for professional or Technical Services

  • Applicable on payments or credit towards - Fees for Professional or Technical Services
  • Any remuneration or commission paid to director of the company (Effective from 1 July 2012). Other than those covered under section 192 

Royalty

  • Any sun referred to in Section 28(va) payable towards not carrying out any business activity or not sharing any know-how patent, CR,TM, Licence, commercial rights etc.
  • Limit > Rs. 30000   TDS Rate @ 10%

Other TDS Sections

  • 194K- Income in respect of units
  • 194L- Compensation on Acquisition of Capital Asset
  • 194LA- Compensation on Acquisition of certain immovable property
  • 194LB- Income by way of Interest from Infrastructure debt fund
  • 194LC- Income by way of Interest from Indian Companies.
  • 194LD-Income by way of interest on certain bonds and Govt. Securities.
  • 195- Other Sums
  • 196-196A-196B-196C-196D

Correction TDS Statement online filing process is available on TRACES

In our continuous endeavor to enrich end-user experience, we are glad to bring to you the convenience of online facility of filing corrections to the TDS Statements. With this feature, you will be able to breeze through submitting revisions with ease and confidence, when you complete your transactions on TRACES portal. 
  
To avail the facility, it is requested to Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu. 
  
Pre-requisites for filing Online Corrections: 

  • Digital Signature is mandatory to be registered on TRACES for raising online corrections. To register your Digital Signature, please refer to the e- tutorial for any help. 
  • Online request can be submitted, only if there is a regular statement already filed and processed. 
  • All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard. 

Functionalities available: 
PAN Correction 

  • Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in “Name as per changed PAN”. 
  • Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the “Action Status”. Please note that there is only one opportunity for a Valid to Valid PAN correction. 
  • All the corrected rows can be viewed by clicking on “Show Edited Rows” on the screen.

Challan/BIN Correction 

  • A list of all Unmatched Challans can be viewed and tagged with this functionality 
  • Please note that the Matched challans cannot be tagged, however, Unmatched Challans can be corrected for “Section Code” and “Amount Claimed” and tagged to Deductee rows in the statement. In addition, NO CHALLAN, which has been used for other purposes outside the system,  should be tagged. 
  • The corrections to Unmatched Challans can be reset by clicking the Reset tab, if this requires to be further corrected. 

Action Summary 

  • After carrying out all the corrections, Action Summary can be referred for all changes carried out.
  • Please click “Confirm” for all intended changes and the statement is ready for submission. 

Actions to complete Submission 

  • Please navigate to “Defaults” tab to locate “Corrections Ready for Submission”
  • Click on “Submit for Processing”, which will prompt to digitally sign the submission. 
  • Once the correction is submitted successfully, a Token Number for the same will be available 

For any further assistance, please refer to the e-tutorial available on TRACES, before reaching out to us on contactus@tdscpc.gov.in or call our toll-free number 1800 103 0344. 

Getting a PAN made stricter

It will not be easy to get a Permanent Account Number (PAN) now, as the Income Tax (I- T) department on Friday put more conditions for applicants in a bid to crack down on fraudsters. “The procedure for PAN allotment will undergo a change from February 3. Every applicant will have to submit self- attested copies of proof of identity, address and date of birth documents and also produce original documents for verification,” the Central Board of Direct Taxes ( CBDT) said on Friday. It said the original documents would be returned after verifying the self- attested copies attached with the application form received at the PAN facilitation centre. An official said the decision was taken after the department noticed a lot of cases where people were giving false information in the application to get a duplicate PAN in some cases and to get the card even when they were not eligible for it in other cases. About 1.4 million new PAN cards are issued every year by the department, which is able to verify details of only 0.2 per cent applicants. Experts said the department’s intention behind the move was to check mala fide cases but it would cause problems for genuine applicants. “The department is asking for self attested as well as original documents ( for verification only), to be 100 per cent sure about their veracity. But this will make it more difficult to obtain PAN, particularly for foreigners. People might not be comfortable sharing original documents with consultants. There are practical challenges which might unfold in the coming days and we hope for more clarity,” said Amarpal Chadha, tax partner, EY. The official agreed it might cause discomfort to some people but the intention was to make the system foolproof. CBDT had found some foreign nationals were using PAN as proof of identity. In most of these cases, a fake certificate of identity and address signed by a Member of Parliament was issued. By I- T Rules, a depository account statement, bank account statement/ passbook, ration card, passport, voter identity card, driving licence, property tax assessment order and a certificate signed by a Member of Parliament or a Member of Legislative Assembly or municipal councillor or a gazetted officer are accepted as proof of identity as well as address. Currently, about 140 million people have a PAN card in India, while only 34 million of them file their income tax returns. Many people who don’t file returns, get a PAN as it works as an identity proof at many places. Of the total PAN allotment, 96 per cent are under the category of ‘ Individual’ applicants and the highest fake/ duplicates are also observed under this category. In March 2011, after finding a huge mismatch between the number of PAN holders and the number of tax return filings, the Comptroller & Auditor General had asked the I- T department to ensure that a single taxpayer was not issued multiple cards. - www.business-standard.com – dated, 25-01-2014

Source: www.taxmann.com

Happy Republic Day ..

Freedom in Mind,
Faith in Words,
Pride in our Heart,
Memories in our Souls.

Let's Salute the Nation on
REPUBLIC DAY..

HAPPY REPUBLIC DAY !


Original Proofs is mandatory for PAN Application w.e.f. 03.02.2014

The Income Tax Department has issued a Press Release on 24th Jan. 2014 regarding new PAN application/allotment procedure. As per the new PAN allotment process which will effect from 03.02.2014 applicant of PAN application must file original documents at the time of PAN verification by PAN application counters.  The press Release is as under:

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Dated 24th January, 2013

Press Release

The procedure for PAN allotment process will undergo a change w.e.f. 03.02.2014. From this date onwards, every PAN applicant has to submit self-attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

(Rekha Shukla)
Commissioner of Income Tax (M&TP)
Official Spokesperson, CBDT

In this connection the Directorate of Income Tax (Systems) has issued a notification  No. oPAN/1/3/2003/Part dated 24.1.2014 regarding Change in procedure for PAN Allotment.  Which is as under:

Subject: Change in procedure for PAN Allotment.

1.  The fee for processing a PAN application shall be Rs. 105/- (inclusive of all taxes).
2.  Subsequent to notification S.O.No. 3794(E) dt 23.12.2013, the procedure for PAN allotment process will undergo a change w.e.f. 03.02.2014.
  • Form 03.02.2014 onwards, every PAN application has to submit selfattested copies of Proof of Identify (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents for verfication at the counter of PAN facilitation centers.  List of documents of POI/POA/DOB is given in the Instructions part of Form 49A/49AA.
  • The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN facilitation Centres.
  • Original documents shll not be retained by the PAN Faciliation Centres and will be returned back to the applicant after verification.

Sd/-
(N.J.Singh)
Joint Director of Income Tax (Systems)-I
New Delhi

Download Change in procedure for PAN Allotment Press Release.

Refund of TDS paid wrongly by Deductor/Tax Payee.


REFUND OF EXCESS TDS

Q1. Refund of Excess TDS Paid ?
Yes
one can get refund of excess tds paid/deposited. CBDT had issued ircular in April 2011 which lays down the procedure on getting tds refund prior to 1st April, 2010 and to deal with refunds after 1st April, 2010, finance act 2009 has inserted a new section 200A.

Prior to 1st April, 2010 and after 1st April, 2010:



  1. Refund of excess TDS deducted on or after 01/04/2010 (i.e 1st April, 2010)
  2. Refund of Excess TDS paid is covered under the Provisions of 200A of the Income Tax Act which is very similar to section 143(1) (deemed intimation) under which every return filed by a tax payer is processed and intimation is generated. The tax payer also gets refund, if any.
  3. The Section 200A now makes it mandatory for Income Tax Department to process every TDS return and if refund is due on such processing of TDS return, shall be sent by the department to deductor.
  4. The excess payment to be refunded would be the difference between:
  •   The actual payment made by the deductor to the credit of the Central Govt and
  • The tax deductible at source.
  1. Section 200A provides power to Income Tax Authority to adjust any arithmetical errors/mistakes/incorrect claims apparent from any information in the statement and compute actual TDS deductible.
  2. Excess TDS Refund Procedure Compute interest on based on the details provided in the statement for deductions and challans.
EXCESS PAYMENT DISCOVERED DURING FINANCIAL YEAR
  • In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.
EXCESS PAYMENT DISCOVERED AFTER FINANCIAL YEAR
  • In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned.
  • However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.
Refund of excess TDS deposited before 01/04/2010 (i.e. prior to 1st April, 2010)
  • The claim of such excess TDS is governed by CBDT Circular no 2/2011 dated 27/04/2011 which lays down following procedure for claiming refund.
SAFEGUARDS EXERCISE BY AO TO AVOID DOUBLE CLAIMS
 The applicant deductor shall establish before the AO that:
  •  It is a case of genuine error and that the error had occurred inadvertently.
  • That the TDS certificate for the refund amount requested has not been issued to the deductee(s).
  • That the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.
GENERAL POINTS
  1. This circular covers only residents having deducted TDS under section 192 to 194LA of the Income Tax Act.
  2. Prior approval of the Additional Commissioner is required for refund up to Rs. 1 Lakh
  3. Prior approval of the Commissioner is required for refund in excess of Rs. 1 Lakhs
  4. After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.
  5. FORM 26B is a form for making refund electronically by deductor to IT department.

Source: www.caclubindia.com

Some Tax Deductions are not allowed to claim from Income Tax Exemption.

All tax deductions aren’t worth claiming

The tax season has kicked off. Yet again, taxpayers will be rushing to complete their formalities and more important, claim deductions. But there are many deductions or benefits the Income Tax ( I- T) Act offers that are not in line with the current expenses of individuals or in keeping with the pace of inflation. As an income tax consultant puts it, “ Some of the deductions are a joke.” The tax rates for various income brackets aren’t too high as compared to many other countries. But the inflation and interest rates are low in the latter. So, while one pays a higher income tax, they are not paying high equated monthly instalments or food prices have not gone through the roof. Most countries across Europe, including the United Kingdom, have the highest tax rate in the range of 45- 55 per cent and the gap between the income brackets is much wider compared to India. In the highest slab, Sweden has a tax rate of 56.6 per cent, Denmark 55 per cent, the Netherlands 52 per cent, Austria and Belgium 50 per cent, Ireland, Finland and Norway nearly 45 per cent, Japan 50 per cent, and Australia, China and Israel 45 per cent. The income threshold for the basic exemption and for the highest tax bracket in most other countries are quite high. There are various expense- and investment based deductions in Indian I- T laws that have not been revised for a long time. Here’s a look at some.

Medical expenses

Says Kuldip Kumar, executive director ( tax and regulatory practice) at Price water house Cooper, “Something as basic as the annual medical reimbursement has been kept at Rs.15,000 for the last 15 years ( it was raised from Rs.10,000 to Rs.15,000 in April 1999). This should be revised to be on a par with medical inflation, which has been huge in the past years.” For those battling health issues or having elders who need medical attention, Rs.15,000 is a rather small amount to claim. Some tax consultants say senior citizens should be given some relief for medical expenses as their income might not be much but health care expenses could be high. Also, senior citizens get negative returns when there is a limited income flow.

Preventive health check- ups

In 2012, then finance minister Pranab Mukherjee brought an additional deduction for preventive health checks. You can claim up to Rs.5,000 for this under Section 80D. Unfortunately, this Rs.5,000 deduction is a part of the Rs.15,000 deduction you can claim for contribution towards premiums of a health insurance policy. In effect, it eats into your deduction for the health insurance premium if you have a high cover and premium. At the same time, Rs.5,000 for health checks is small. Definitely not enough when looking to get your family a preventive health check. In most cases, this can cost you Rs.9,000- 12,000.

Health insurance

The Rs.15,000 deduction available for individuals for contribution towards premium of a health insurance policy for oneself could be good enough. “ But the deductions for contribution towards premium of a health insurance policy for elderly parent( s) might not be enough,” says Suresh Surana, founder of tax consultancy firm, RSM Astute Consulting. If you buy a policy for a retired parent, you will need an individual policy as an elderly person could have complicated health issues. A health insurance policy of Rs.5 lakh for a retired individual can cost you between Rs.20,000 and Rs.36,000 annually. In case you contribute this most of the Rs.1 lakh allotted under this section. Hence, there is little left for you to claim for your children’s tuition fee. The annual tuition fee in schools can easily be Rs.50,000 and upwards. This apart, “ if your employer pays you an allowance for children’s education, you can claim Rs.100 per child per month, for up to two children. And, Rs.300 per month per child for up to two children for expenses towards their hostel accommodation,” says Amarpal Chadha, tax partner at EY. When the tax deduction amounts are so small, you probably have no inclination left to claim deductions. Imagine paying around Rs.50,000 a year towards your child’s education, for which you get deductions of up to Rs.1,200 in ayear ( for two children). “We suggest clients not take such an allowance, if possible, because it doesn’t make sense to keep records of such meagre deductions. Instead, take deductions under Section 80C. This way, you make up for the cost to at least some extent. For those who can’t deny having received such allowances, we suggest they don’t bother claiming,” says a chartered accountant.

Repayment of home loan principal

Can you really claim a Rs.1- lakh deduction on your home loan principal repayment? Given that it is under Section 80C and amid all those other heads like EPF, child’s education, insurance claims, etc, one will seldom be able to claim it. The deduction for interest repayment up to Rs.1.50 lakh is significant but might not work much in metro cities, where houses cost way more than the Rs.15- 18 lakh of loan amounts (which would provide a Rs.1.50- lakh benefit). Someone who has a home loan of Rs.50 lakh pays an equated monthly instalment ( EMI) of roughly Rs.50,000. Of that, at least 80 per cent goes towards servicing the interest portion, which comes to Rs.40,000 or Rs.4.80 lakh annually. The person gets tax benefit on only Rs.1.50 lakh of that, unless it is a second property. You get unlimited tax benefit for repaying interest on a second home loan. Similarly, if you avail a loan for renovating your house, you can claim for the interest paid on this loan as a tax deduction, subject to a cap of Rs.30,000 annually for a self- occupied property. Renovation can actually cost way higher. Surana says the Rs.2,000 rebate to every person with a total income of up to Rs.5 lakh, introduced in the previous Budget under Section 87A, is also on the lower side and might not be worth the effort of claiming. – www.business-standard.com – dated, 20-01-2014

Banknotes issued prior to 2005 to be withdrawn: RBI Advisory

The Reserve Bank of India has today advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication. The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side. (Please see illustration below)

The Reserve Bank has also clarified that the notes issued before 2005 will continue to be legal tender. This would mean that banks are required to exchange the notes for their customers as well as for non-customers. From July 01, 2014, however,  to exchange more than 10 pieces of `500 and `1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes.

The Reserve Bank has appealed to the public not to panic. They are requested to actively co-operate in the withdrawal process.

Ajit Prasad
Assistant General Manager

Press Release : 2013-2014/1472
Download  Press Release Note

Latest Amendment in Settlement of Commission Rules by CBDT

The Central Board of Direct Taxes has been issued a notification regarding amendment in section 245D for Settlement of Commission adates.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF DIRECT TAXES

Notification
New Delhi, the 15th January, 2014

S.O. 108 (E). - In exercise of the powers conferred by section 295 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 (1st Amendment) Rules, 2014.
   (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income Tax Rules, 1962, in rule 44CA,-
   (a) in sub-rule (1), for the bracket and words "(other than the Annexure and the statement", the bracket and words "(including the Annexure and the statements)" shall be substituted;
   (b) for sub-rule (2), the following sub-rules shall be substituted, namely:-
       "(2) Where an application has not been declared invalid under sub-section (2C) of section 245D or an application has been allowed to be further proceeded with under sub-section (2D) of that section, all the material and other information produce by the assessee before the Settlement Commission shall be sent to the Commissioner to enable him to furnish the report under sub-section (3) of section 245D.
        (3) Where the proceeding before the Settlement Commission adates, the Commission shall sent, all the material and other information produced by the assessee before the Commission and the results of any enquiry held or evidence recorded in the course of proceedings before it, to the Commissioner".

[Notification No. 5/2014][F.No.142/32/2013-TPL]

[Ashis Mohanty]
Under Secretary to Government of India

Note:-  The principal rules were published in the Gazette of India, Extraordinary, vide notification S.O. 969 (E), dated 26th March, 1962 and last amended by the Income-Tax (19th Amendment) Rules, 2013 vide notification S.O. 3794 (E) dated the 23rd December, 2013.

Notified Contributory Health Service Scheme under section 80D.

The Central Board of Direct Taxes has notifies the Contributory Health Service Scheme of the Department of Spcae for the purpose of said Clause under section 80D for the Assessment Year 2014-15 and subsequent Assessment Years.  The full notification is as under:

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART-II, SECTION-3, SUB-SECTION (ii)]
Government of India
Ministry of Finance
Department of Revenue
[Central Board of Direct Taxes]
INCOME-TAX

NOTIFICATION
****
New Delhi, the 15th January, 2014

S.O.107 (E). — In exercise of the powers conferred by clause (a) of sub-section (2) of section 80D of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the Contributory Health Service Scheme of the Department of Space for the purposes of the said clause for the assessment year 2014-15 and subsequent assessment years.

[Notification No.6/2014 (F. No. 149/97/2013 –TPL)]

Sd/-
(Arju Garodia)
Under Secretary (TPL)

Save Income Tax on the Contribution made by Government in pension fund.

Save Income Tax on the Contribution made by Government in pension fund of NPS Subscriber, Refer 5.5.3 Deduction in respect of contribution to pension scheme of Central Government (Section 80CCD).

5.5.3 Deduction in respect of contribution to pension scheme of Central Government (Section 80CCD):

Section 80CCD(1) allows an employee, being an individual employed by the Central Government or any other employer, on or after the 01.01.2004, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified vide Notification F. N. 5/7/2003- ECB&PR dated 22.12.2003 or as may be notifed by the Central Government. However, the deduction shall not exceed an amount equal to 10% of his salary(includes Dearness Allowance but excludes all other allowance and perquisites).

As per Section 80CCD(2), where an employee receives any contribution in the said pension scheme from the Central Government or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by the Central Government or any other employer subject to limit of 10% of his salary of the previous year.

However, if any amount is standing to the credit of the employee in the pension scheme referred above and deduction has been allowed as stated above and the employee or his nominee receives this amount together with the amount accrued thereon, due to the reason of
(i) Closure or opting out of the pension scheme or
(ii) Pension received from the annuity plan purchased and taken on such closure or opting out then the amount so received during the FYs shall be the income of the employee or his nominee for that Financial Year and accordingly will be charged to tax. Where any amount paid or deposited by the employee has been taken into account for the purposes of this section, a deduction with reference to such amount shall not be allowed under section 80C.

Further it has been specified that w.e.f 01.04.09 that any amount received by the employee from the new pension scheme shall be deemed not to have received in the previous year if such amount is used for purchasing an annuity plan in the previous year.

It is emphasized that as per the section 80CCE the aggregate amount of deduction under sections 80C, 80CCC and Section 80CCD(1) shall not exceed Rs.1,00,000/-. However the contribution made by the Central Government or any other employer to a pension scheme u/s 80CCD(2) shall be excluded from the limit of Rs.1,00,000/- provided under this Section.

Source: AIRF

Clarification Regarding TDS of Rent Service under Chapter XVII-B on Service Tax Component.


SECTION 194-I OF THE INCOME-TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - RENT – CLARIFICATION REGARDING TDS UNDER CHAPTER XVII-B ON SERVICE TAX COMPONENT COMPRISED OF PAYMENTS MADE TO RESIDENTS
CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014

The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as 'the Act'), on the amount of rent paid/payable without including the service tax component. Representations/letters has been received seeking clarification whether such principle can be extended to other provisions of the Act also.

2. Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajasthan High Court dated 1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Act.

3. The matter has been examined afresh. In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.

4. This circular may be brought to the notice of all officer for compliance.

Wife has right to know husband’s salary.

New Delhi: Wives of government servants have a “right” to know salary particulars of their husbands and these details should also be made public by their offices as mandated under suo-moto disclosure clause of the RTI Act, the Central information Commission has held.

Information Commissioner M Sridhar Acharyulu said every spouse has a right to information about the salary particulars of the other especially for the purpose of maintenance.

“More so, wife has a right to know the salary particulars of the husband, who is an employee of the public authority,” he said.

The commissioner further said that the details about a government employee’s salary is no third party information and these have to be voluntarily disclosed under Section 4(1)(b)(x) of the RTI Act.

He said the salary paid to the public authority is sourced from the tax paid by the people in general and it has to be disclosed mandatorily under the RTI section.

“The information about the salary of employee or an officer of the same public authority cannot be considered as a third party information… Public authorities cannot reject such RTI applications about salary under the pretext of the third party information,” he held.

Acharyulu warned the Home Department of Delhi government that such denial of information will be wrongful and could incur penalty. The warning was in context of an application filed by Jyoti Seherawat seeking salary slip of her husband who is employed at the Home (General) department.

The information was denied as her husband gave in written to the department that such an information should not be provided to anyone.

Source : PTI

Updated Tax Software, Tax Slab & more for Asstt. Year 2014-15.

No-doubt, in the market of internet there are various Tax Calculation Software.  All are calculate Tax on Taxable Income only but not provide other facility which is applicable for All salaried Employee i.e. Central Government Employee or State Government Employee.  This is a update version of previous Tax Calculation utility of Gsoftnet.  This updated Tax Calculation Utility Generates "Form-16", Computation of Income Tax, Generate Month-wise Salary Statement of Salaried Employee as per notification dated 08.10.2013 for the Asstt. Year 2014-15.

Facility of this software:
Easy wat to Calculate Income Tax, Generate Month-wise Salary Statement and Form 16 with Annexure "A" and "B" in new amended format. In this Software Taxpayee (Salaried Employee) Enter their personal Data i.e. under Chapter -VIA Deductions and other applicable Deduction like as 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.

This Software is based on Income Tax circular dated 08.10.2013 issued by Income Tax Department for Assessment Year 2014-15.

Physical Requirements:
  • OS required Windows-2000, XP, Vista, Windows-7, Windows-8 etc.
  • MS Office-7 or Above Version is required.
  • Printing Facility Provides on Inkjet, Ledger Printer and other printers.
  • Required Standard A4 Size Paper Sheets.

Data Entry:
  • Only  "White" Cells are provide for input data.
  • Press Mouse Buttons for applications which you want to operate.

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 Month-wise Salary Statement for Asstt. Year 2013-14.
  • It Generate TDS Certificate (Form 16) Automatically with Annexure "B".
 Income Tax Slab for Asstt. Year 2014-15.
I. In case of individual (other than II and III below) and HUF
*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

II. In case of individual being a woman resident in India and below the age of 60 years at any time during the previous year:
*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

III. In case of an individual resident who is of the age of 60 years or more at any time during the previous year:
*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

IV. In case of an individual resident who is of the age of 80 years or more at any time during the previous year:
*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh
  • Education Cess: 3% of the Income-tax.
  • New Rs 50,000 tax exemption for retail equity investments
  • Sale of residential property exempt from Capital Gains tax if invested in equity or equipment of an SME.
  • Implementation of Direct Tax Code (DTC) deferred. GST to be operational by August 2012.
  • Surcharge of 10% on income more than Rs. 1 crore
  • Tax credit of Rs.2000 for annual income of Rs. 5 lakh
  • Home Loan Income tax Exemption limit increased from Rs.1.5 lakhs to Rs.2.5 lakhs for loan up to Rs.25 lakhs
  • Rajiv Gandhi Equity Savings Scheme extended to mutual funds.
  • Rajiv Gandhi Equity Savings Scheme to be liberlised.
  • Rajiv Gandhi Equity Savings Scheme limit increased.
  FREE OWNLOAD


FOR FREE DAILY UPDATES CLICK HERE

Complete procedure for Digital Signature Certificate

Digital Signature Certificate (DSC) is an electronic signature that can be used to authenticate the identity of the sender of a message or the signer of a document. Digital Signature Certificate (DSC) is a digital equivalent of a hand written signature.

An assessee can use a Digital Signature Certificate to file their Return/Form. A Digital Signature ensures that no alterations are made to the data once the document has been digitally signed. A DSC is normally valid for 1 or 2 years, after which it can be renewed.
DSC for e-Filing is mandatory for :
  • Individuals and Firms w.e.f 1st July 2011 whose accounts are required to be audited u/s 44 AB of the Income Tax Act, 1961. "
  • Companies from AY 2010-11 onwards.
  • Any Income Tax Forms filed by assessee, Chartered Accountants, Deductors, etc.
  • Optional for all other assessees.
A DSC should be issued by a licensed Certifying Authority (CA). Certifying Authority (CA) means a person who has been granted a licence to issue a DSC under Section 24 of the Indian Information Technology Act 2000.
Types of DSC:
 
There are 3 types of DSCs, having different security levels namely: Class-1, Class-2 , Class-3.

Class 1: These certificates do not hold any legal validity as the validation process is based only on a valid e-mail ID and involves no direct verification.

Class 2: The identity of a person is verified against a trusted, pre-verified database.

Class 3: This is the highest level where the person needs to present himself or herself in front of a Registration Authority (RA) and prove his/ her identity.

For e-Filing, Class-2 and Class-3 DSCs are accepted.

A DSC should be issued by a Licensed Certifying Authority (CA). CA means a person who has been granted a licence to issue a Digital Signature Certificate under Section 24 of the Indian Information Technology Act 2000.

To view the list of the Certified Digital Signature Certificate Providers, please refer to help section in the e-Filing application.

Deduction or Non-Deduction of Tax at source u/s. 197 of the Income-tax Act.

The CBDT has issued an instruction No. 1/2014 Dated 15/01/2014 regarding Certificate of Lower Deduction or Non-Deduction of Tax at source u/s. 197 of the Income-tax Act to All the Chief Commissioners & Directors General of Income Tax which is as under:

INSTRUCTION NO 1/2014
Dated: January 15, 2014

To

All the Chief Commissioners & Directors General of Income Tax,

Certificate of Lower deduction or non-deduction of tax at source under section 197 of the Income-tax Act, 1961 - matter regarding.

As per the Citizens Charter the time line prescribed for a decision on application for no deduction of tax or deduction of tax at lower rate is one month. Instances have been brought to the notice of the Board, about considerable delay in issuing the lower/non deduction certificate under section 197 by the jurisdictional Assessing Officers.

2. I am directed to say that the commitment to tax payers as per the Citizens Charter must be scrupulously adhered to by the Assessing Officers and all applications for lower or no deduction of tax at source filed u/s 197 of the Income-tax Act, 1961 must be disposed of within the stipulated time frame as above.

3. This may be brought to the notice of all officers in the field for compliance.

4. Hindi version will follow.

F.No.275/03/2014-IT(B)
(Sandeep Singh)
Under Secretary to the Govt. of India