Gsoftnet

7th CPC ToR to be taken up by Union Cabinet Tomorrow


Cabinet Committee recommends Parliament prorogation

Unprecedented number of proposals including the possibility of draft ordinances on anti-graft bills expected to be cleared by Cabinet on Friday

The Cabinet Committee on Parliamentary Affairs on Wednesday recommended prorogation of Parliament ahead of Friday’s Cabinet meeting which is scheduled to clear an unprecedented number of proposals including the possibility of draft ordinances on the pet anti-graft bills of the Congress vice-president Rahul Gandhi.

“It is a choc-o-bloc agenda. I have never known seen such heavy agenda before the Cabinet. We are working feverishly as if for the last supper,” a senior Finance Ministry official told The Hindu. The UPA government is keen on clearing as many proposals as possible before the expected general election announcement of the Election Commission after which the Code of Conduct comes into vogue. Among the items for clearance include 54 new Kendriya Vidyalayas and GSLV-Mark III.

Marathon Cabinet meeting expected

With the schedule for the Lok Sabha likely to be announced on Saturday, the UPA government is working “feverishly” on a record number of announcements, appointments and initiatives before the model code of conduct kicks in.  The Cabinet meeting on Friday is expected to be a “marathon” one as it will be the last opportunity for the government to take policy decisions as well as ‘populist’ sops, top Finance Ministry sources told The Hindu.

The proposals lined up for Friday’s Cabinet include 54 new Kendriya Vidalayas, space programme GSLV-Mark III, a six-lane bypass for Delhi, terms of reference for the 7 Pay Commission which was set up by Prime Minister Manmohan Singh recently.

It is expected to consider Rs. 3,500 crore budget for new broadcasting infrastructure for All India Radio and Doordarshan, 10-per cent Dearness Allowance for government employees and 600 MW hydro-power projects in Bhutan. The dearness allowance hike to 100 per cent from the existing 90 per cent is expected to benefit to benefiting 50 lakh employees and 30 lakh pensioners.

New schemes have been put up for approval by the Ministries for health, tourism, water resources, human resource development and agriculture. These include expansion of government-funded PhD seats for electronic systems design and manufacturing of hardware, a new investment scheme for urea, two new highways and a health research scheme from the Human Resource Development Ministry. Some shipping and steel projects will also come up for approvals.

Officials believe some more items could be put on the block-buster agenda. A Cabinet Minister told The Hindu that the government expects the Election Commission to announce the general election schedule on Saturday or latest by Monday.

Source : The Hindu

Voluntary Retirement under Fundamental Rule 56(k), 56(m) and Rule 48 - Amendment orders by Dopt

Voluntary Retirement under Fundamental Rule 56(k), 56(m) and Rule 48  - Amendment orders by Dopt

Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training

North Block, New Delhi-100 001
Dated : 27th February, 2014

Subject : Voluntary retirement under FR 56(k), etc. and amendment of Rules.

The provisions of Fundamental Rule 56(k), 56(m) and Rule 48 of CCS(Pension) Rules, 1972 relating to acceptance of request of voluntary retirement have been revisited as per the Central Administrative Tribunal, Principal Bench judgement dated 4th August, 2010 in 0.A.No.1600/2009 filed by Shri Gopal Singh Purohit Vs UOI & Others to bring them at par with each other.

2. The matter has ‘been examined in consultation with Department of Pension and Pensioners Welfare and the Ministry of Law. FR 56(k) and 56 (m) have been amended vide Extra Ordinary Gazette Notification No.GSR.27(E) dated 17 th January, 2014. It shall be open to the appropriate authority to withhold permission to a Government servant who seeks to retire under FR 56(k) or 56 (m) in the following circumstances:

    (i) If the Government servant is under suspension ; or
    (ii) If a charge sheet has been issued and the disciplinary proceedings are pending; or
    (iii) If judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation: For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.

3. Copy of the Gazette Notification No.G.S.R.E.(27) dated 17.1.2014 amending FR 56(k) and FR 56(m) is enclosed.

4. All Ministries/Departments are requested to bring the contents of this O.M. to the notice of all concerned.

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Personnel and Training )

NOTIFICATION
New Delhi, the 17th January, 2014

GS.R. – 27(E) In exercise of the powers conferred by the proviso to article 309 of the Constitution, and in consultation with the Comptroller and Auditor General in relation to persons serving in the Indian Audit and Accounts Department, the President hereby makes the following rule further to amend the Fundamental Rules, 1922, namely :-

I. (1) These rules may be called the Fundamental (First Amendment) Rules, 2014.

(2) They shall came into force on the date of their publication in the Official Gazette.

2. In the Fundamental Rule, 1922, in rule 56, –
(a) in clause (k), in sub-clause ( I), for item (c), the following, shall be substituted namely :-
"(c) it shall be open to the Appropriate Authority to withhold permission to a Government servant, who seeks to retire under this clause, if,-

    (i) the Government servant is under suspension: or
    (ii) a charge sheet has been issued and the disciplinary proceedings are pending; or
    (iii) if judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation :- For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.";

(b) for clause (m), the following shall be substituted, namely : –

"(m)A Government servant in Group ‘C’ post who is not governed by any pension rules, may, by giving notice of not less than three months in writing to the Appropriate Authority, retire from service after he has completed thirty years service :
Provided that it shall be open to the Appropriate Authority to withhold permission to a Government servant, who seeks to retire proceedings."

    (i) the Government servant is under suspension: or
    (ii) a charge sheet has been issued and the disciplinary proceedings are pending; or
    (iii) if judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation :- For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.";

[No.25013/3/2010-Estt. (A-IV)]
MAMTA KUNDR A, Jt. Secy.

Source : www.persmin.gov.in

Tax Calculator, Form-16 (Part-A & B), Statement for Asstt. Year 2014-15 for all Employee.

CBDT has recently changed the Format of Form-16 and this New format of form 16 have in 2(two) Parts, One is Part A which is mandatory to download from the Income Tax TRACES Portal and another is Part B which must be prepare manually for employee by employer.

In the Part A of Form 16 have the details of Tax deduction from the source and deposited in to the Central Govt and in the Part of Form 16 Part B where the details of employees Salary. Most of the concerned have not known about this new amended of CBDT.


On the basis of above amendment by CBDT this is the updated version for Tax Calculation, "Form-16", Computation of Income Tax, Month-wise Salary Statement etc. for the Asstt. Year 2014-15.

Facility of this software:
This utility is very easy to use for Calculation of Income Tax, Month-wise Salary Statement and Form 16 with Annexure "A" and "B" etc. in new amended format. All Salaried Employee can maintain 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. 

This utility provide another facility regarding Income Tax 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".
FOR FREE DAILY UPDATES CLICK HERE

DOWNLOAD UPDATED TAX SOFTWARE

Interactive Voice Response (IVR) application for status of PAN & TAN is now available.

NSDL-TIN has started a new application for status of PAN and TAN which is known as Interactive Voice Response (IVR).  IVR is new application for knowing the status of your PAN/ TAN application which is now available at TIN call centre (TCC) in Hindi/English language. You may call on 020- 27218080 to check the status of your application.

Facility for payment of PAN application fee in Indian Rupees & foreign currency by foreign citizens/NRIs using 'Credit Card/Debit Card' is now available for those applicants who apply PAN online.

Applicant should search for the status of PAN application using Name and Date Of Birth 24 hours after the application has been submitted online or through TIN-FC with  required documents.

Track your PAN/TAN Application Status

50% DA Merger, Retirement Age 62 and Interim Relief soon to CGE

50% DA Merger, Retirement Age 62 and Interim Relief – Cabinet is likely to clear some of these demands..!

Central Govt. employees and pensioners will find reasons to celebrate this week. The union cabinet is likely to clear some long awaited demands for it’s staff in the next meeting later this week The F.M., currently on foreign tour, likely to return India on 26th February and after which cabinet meeting is likely to take place.

According to information available with us, merger of 50% D.A., an additional hike of 10% D.A. from 01.01.2014, granting of Interim Relief and enhancing retirement age to 62 years are under the consideration of Govt. and some of these are to be approved in the next cabinet meeting.

As the notification of loksabha poll may be issued in the first week of March, this would be the last cabinet meeting before the code of conduct comes into force.

So the central employees and pensioners may definitely hope for some bonanza to be announced this week.

Source: www.paycommissionupdate.blogspot.in

Central Government employees may get 50% DA merger - BSNL Employees Union

The Central Government has already formed the 7th Pay Commission for it's employees. The Commission will recommend wage revision for the 50 lakh Central Government employees, as well as pension revision for the 30 lakh pensioners. As per media reports, the Government may merge 50% DA with the basic pay, for which the unions are hard pressing the Government.

As of now, the Central Government employees are getting 90% DA. They are going to get another 10% DA increase from next month, which will take their total DA to 100% of pay. The normal practice is that DA will be merged with pay, when it reaches 50%. Merger of 50% DA with basic pay was done by the 5th Pay Commission, while the 6th Pay Commission refused to do so. Now, as per media reports, the Government is likely to make a proposal in this regard to the terms of reference for the 7th Pay Commission.

In respect of the BSNL employees, the BSNLEU has already raised the demand that 50% IDA should be merged with the basic pay. The recently held Rajkot CEC meeting of BSNLEU has passed a resolution, strongly demanding 50% IDA merger.

PPF amount is exempted from any Recovery of Income Tax Dues.

IT : PPF account is immune from attachment and sale for recovery of income-tax dues

Rule 10 of the Second Schedule to the Income-Tax Act,1961 provides that All such property as is by the Code of Civil Procedure, 1908, exempt from attachment and sale in execution of a decree of a civil court shall be exempt from attachment and sale under this Schedule. Proviso to section 60(1) of Code of Civil Procedure contains list of properties which shall not be liable to attachment or sale which inter alia covers in clause (ka) "(ka) all deposits and other sums in or derived from any fund to which the Public Provident Fund Act, 1968 (23 of 1968), for the time being applies, in so far as they are declared by the said Act as not to be liable to attachment."

Therefore, any amount lying in the PPF account of a subscriber is immune from attachment and sale for recovery of the income tax dues. As long as an amount remains invested in a PPF account of an individual, the same would be immune from attachment from recovery of the tax dues. The situation may change as and when such amount is withdrawn and paid over to the subscriber. CBDT circular dated 7-11-1990 clarifying that "Section 9 of the Public Provident Fund applies only to attachment under a decree/order of a Court of Law and not to attachment by the Income Tax Authorities" is contrary to the above statutory provisions.

Source: www.taxmann.com

Merger of 50% DA with Pay and grant of Interim Relief - NFIR

NFIR
National Federation of Indian Railwaymen

No.II/95/Pt. VI
Dated: 20/02/2014
The General Secretaries of
Affiliated Unions of NFIR.

Brother,

Sub: Merger of 50% DA with Pay and grant of Interim Relief.

NFIR has been writing to the Government of India (including Prime Minister, Finance Minister etc) for merger of 50% DA with pay through its letters dated 10/01/2013, 05/08/2013, 27/09/2013. Also in its 27th National Convention held at Visakhapatnam from 10th  to 12th December, 2013, the Federation had passed a resolution demanding merger of 50% DA with Pay and grant of interim relief to employees of Central Government including Railway employees.

NFIR feels happy to convey that the Central Government has conceded the demand of the employees raised by the Federation.

Union Cabinet is likely to consider the issues to day for taking final decision. Federation will advise decision when taken by the Government. Federation expects that there may be Good News for all Central Government employees very soon.

Yours faithfully,
sd/-
(M.Raghavaiah)
General Secretary

Source: NFIR

Procedure for payment of outstanding Demand related with Late Filing.

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

How to save Tax on Long Term Capital Gain ?

Tax on Long Term Capital Gain (LTCG) on sale of any residential house property can be saved (U/s 54 of the Income Tax Act-1961) if the LTCG is invested within a prescribed time for purchase/ construction of a house property. The exemption u/s 54 would be available even if the taxpayer already owns another residential house property (i.e., exemption would be admissible even if second house property is purchased). Another option to save LTCG tax could be by investing the amount of LTCG within a period of 6 months from the date of transfer in the specified bonds issued by Rural Electrical Corporation (REC) or National Highway Authority of India (NHAI).
 
Time limit to Purchase the Property: Exemption u/s 54 is available if the taxpayer invests the amount of LTCG for purchase/construction of a house property. The time period within which investment should be done is as under:For Purchase: Within One year before or two years after the date of transfer; or
For construction: Within a period of three years from the date of transfer.

If Taxpayee are planning to purchase a flat and have to complete the transaction of purchase before 21.09.2015. Mere investment in plot is not sufficient for claiming an exemption u/s 54. However, if the house is constructed thereon then the cost of the plot would also be eligible for exemption u/s 54 along with construction cost.

Scheme of Deposits:
  • Even though u/s 54, taxpayer is allowed 2 years for purchase and 3 years for construction of the house property, the capital gain tax on such transfer is taxable in the previous year in which transfer took place. The return of income of that previous year has to be filed before the specified date i.e., due date. Hence, the tax payer has to take a decision for purchase/ construction of the house property before the date of furnishing of the return otherwise the capital gain would be taxable. To cope up with such situation, Income Tax Act has specified an alternative in the form of Deposit under the Capital Gain Deposit Accounts Scheme-1988 (CGDAS) for earmarking the amount for purchase/construction within specified time limit. The amount of LTCG which is not utilized by the taxpayer for purchase or constructions of the new house till due date has to be deposited under the CGDAS before the DUE DATE of furnishing the return of income. After deposits, the amount already utilized by the taxpayer for purchase/ constructions of the new house till due date, along with unutilized LTCG so deposited, shall be eligible for exemption u/s 54 in the year in which LTCG has arisen. Later on, whenever taxpayer purchase/ constructs the house property within a specified time slot, he can make payment from the CGDAS.
  • Exemption u/s 54 is available if the assessee invests the amount of LTCG for purchase of “a” residential house property. Interpretation of the word “a” is a matter of controversy. To be on a safer side, taxpayee are advised to invest the amount of LTCG in one house property only. Taxpayee may further note that, for claiming an exemption u/s 54, Taxpayee are required to invest the amount of LTCG only (not entire sale consideration of Rs. 29.99 Lacs).
  • Registry Charges/Stamp Duty/Brokerage etc can be added to the cost of new flat for arriving at the amount of exemption u/s 54.
  • If Taxpayee are not able to utilize entire LTCG for new house property, Taxpayee can invest balance LTCG in the specified bonds issued by NHAI/REC. Exemption U/s 54 & U/s 54EC can be claimed simultaneously as well. If Taxpayee are planning to invest in specified bonds, ensure to make the investment within a period of 6 months i.e., before 21.03.2014.
  • Taxpayee can claim an exemption u/s 54 by booking a flat & making the payment in installment to the developer. After considering the amount paid to developer till due date of filing the return of income, ensure to deposit the balance of LTCG in CGDAS. Subsequent installment can be paid to the developer from CGDAS.
  • Taxpayee can incorporate the name of Taxpayee'r wife also in the sale deed for the name sake. Ensure to make the payment through Taxpayee'r account only so that Taxpayee would be able to prove that Taxpayee'r wife don’t have any ownership stake in the property & her name is incorporated in the sale deed for the convenience only.
  • If Taxpayee are not sure of investing LTCG for purchase or construction, Taxpayee can safely & timely think of claiming an exemption u/s 54EC by investing it in the specified bonds issued by NHAI/REC.

Exemption of H.R.A., Rent Receipt - Declaration - Verification for AY 2014-15

Under section 10(13A) of Income Tax Act, 1961, House Rent Allowance granted by an employer to the employee towards meeting expenses actually incurred on rent payment for the residential accommodation of the employee is exempt from income tax. This exemption is not available to an employee who is residing in his/her owned house.

HRA benefit is computed by taking the lowest of the following under the Income-tax Act, 1961:
  1. Actual HRA received;
  2. Rent paid minus 10 per cent of salary;
  3. 50 per cent of salary for individuals living in Delhi, Mumbai, Kolkata or Chennai and 40 per cent of salary for individuals residing in any other city.
While claiming HRA benefit, an employee is required to provide certain documents to the employer like rent receipts, copy of lease agreement, etc. These can vary from employer to employer.

Central Board of Direct Taxes (CBDT) has vide CIRCULAR NO. 8/2013, Dated: Dated: October 10, 2013 said if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer.

As per the circular, individuals who are drawing House Rent Allowance up to Rs 3,000 per month need not provide any documents. The exemption is provided to reduce administrative difficulties for the employer. However, employees may be required to substantiate their case if the tax officer raises any queries.

In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee. Copy of a sample declaration is given below.

RENT RECEIPT
Date:
To
Name & Address

DECLARATION
I ____________(Full name and address of the declarant) aged ____ do hereby declare that I have leased the Flat No._______________________________ From 1st April’2013 to 31st March’2014 to ___________(Name of lessor) at a monthly rent of Rs. _______/- ( __________________ only). Further I do hereby declare that my total income during the financial year 2013-2014 did not exceed the statutory limit prescribed under Income tax Act,1962 and have not assessed to tax and does not have a PAN card.

VERIFICATION
I,_________________ do hereby declare that what is stated above is true to the best of my knowledge and belief.

Verified today, the _____________ day of _________________ at ________.

Signature

Extract from the circular no. 8/2013, dated October 10, 2013 related to HRA
Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. According to Rule 2A of the Rules, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the following:
(a) The actual amount of such allowance received by the assessee in respect of the relevant period i. e. the period during which the accommodation was occupied by the assesse during the financial year; or
(b) The actual expenditure incurred in payment of rent in excess of 1/10 of the salary due for the relevant period; or
  • Where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the employee for the relevant period; or
  • Where such accommodation is situated in any other places, 40% of the salary due to the employee for the relevant period,
For this purpose, “Salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.

It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.

Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it has been decided as an administrative measure that salaried employees drawing house rent allowance up to Rs.3000/- per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.

Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

Source: www.caclubindia.com

Budget Highlights Key Features, Speech and Finance Bill - 2014

Finance Minister P. Chidambaram has placed Union Budget-2014-15 on Monday in Parliament and rejected the charge of policy paralysis as he presented. Chidambaram will present the vote on account on Monday, giving an estimate of funds required to meet expenditure until a new government is in place.

The interim budget 2014-15 is very fiscal and "very balanced", the industry on Monday said that it was 'absolutely' up to the expectations.

Towards the end of his speech, Chidambaram says, "140 million moved out of poverty during UPA-I and UPA-II regime and we are legitimately proud of it.

What to expect from the interim Budget ?
  • The interim Budget essentially an economic report card of UPA-II
  • Chidambaram will set the fiscal deficit target for FY15 and a roadmap for fiscal discipline
  • A possible cut in indirect taxes for troubled sectors is indicated.
  • An excise duty cut to revive manufacturing, specially the auto sector is also expected.
  • In an election year, there could be more sops for health, food and rural jobs.
  • Interest subsidy on bank loans to farmers and exporters could also be extended
  • Tax concessions could be offered for some of the poorer regions in the country.
  • The government could also defer oil, fertiliser and other subsidies to next year
  • Revenues could include proceeds from the recently concluded spectrum auction.
 DOWNLOAD BUDGET HIGH LISTS, SPEECH AND FINANCE BILL - 2014

Highlights of Interim Budget 2014-15

Indian Finance Minister P. Chidambaram cut indirect taxes on cars and mobile phones in an effort to revive growth in an interim budget presented to parliament on Monday for the fiscal year 2014/15.

The government's term ends in May and the measure was necessary to cover expenditure until a national election is completed and a new administration installed.

Chidambaram said India's economy, the 11th largest in the world, had stabilised and was showing signs of turnaround. His speech was marred by protests over the proposed division of a southern state.

Full coverage of the interim budget: reut.rs/1nFHV3c

GROWTH

  • GDP expansion in third and fourth quarters of 2013/14 estimated at 5.2 percent. Growth for the whole year expected at 4.9 percent.

FISCAL DEFICIT

  • Fiscal deficit seen at 4.6 percent of GDP in 2013/14, below target of 4.8 percent.
  • Fiscal deficit projected at 4.1 percent of GDP in 2014/15
  • Says need to bring down the deficit to 3 percent of GDP by 2016/17

CURRENT ACCOUNT DEFICIT

  • Current account deficit for 2013/14 estimated at $45 billion from last fiscal year's $88 billion.
  • Forex reserves to rise by $15 billion by end of 2013/14

BORROWING/DEBT SERVICING

  • Gross market borrowing for 2014/15 seen at 5.97 trillion rupees, net market borrowing at 4.57 trillion rupees.
  • Government plans to buy back/switch bonds of 500 billion rupees in 2014/15.
  • Ways and Means advances for 2014/15 estimated at 100 billion rupees
  • Debt repayment in 2014/15 seen at 1.397 trillion rupees
  • Interest payments seen rising to 4.27 trillion rupees in 2014/15 from a revised estimate of 3.8 trillion rupees for the current fiscal year.

PRIVATISATION

  • Target from stake sale in state run firms for 2013/14 revised to 258.41 billion rupees
  • Target for 2014/15 increased to 569.25 billion rupees

SPENDING

  • Plan expenditure for 2014/15 seen at 5.55 trillion rupees, the same level as the previous fiscal year
  • Non plan spending estimated at about 12.08 trillion rupees in 2014/15

SUBSIDIES

  • Total spending on food, fertilisers and fuel at 2.5 trillion rupees in 2014/15
  • Food subsidy estimated at 1.15 trillion rupees, fertiliser subsidy at 679.71 billion rupees. Petroleum subsidy seen at 634.27 billion rupees versus revised figure of 854.8 billion rupees for 2013/14.

DEFENCE

  • Spending raised to 2.24 trillion rupees in 2014/15, up 10 percent year on year.

EXPORTS

  • Merchandise exports seen at $326 billion in 2013/14, up 6.3 percent year on year.
  • Agriculture exports expected to touch $45 billion in 2013/14, up from $41 billion in 2012/13

TAX PROPOSALS

  • No major change in tax rates
  • Factory gate tax to be reduced to 10 percent from 12 percent on some capital goods, consumer durables
  • Cut excise duty on small cars, two wheelers, commercial vehicles to 8 percent from 12 percent
  • Recommends excise duty reductions on larger vehicles
  • Restructure of factory gate tax for mobile handsets

BANKS RESTRUCTURING

  • Govt to provide 112 billion rupees capital infusion in state run banks in 2014/15
  • Propose to set up public debt management office to start5 work from 2014/15

FINANCE MINISTER COMMENTS
Resurgence in exports, global economic revival and moderation in inflation point to better outlook for Indian economy in 2014/15.

"I can confidently assert that the economy is more stable today than what it was two years ago. The fiscal deficit is declining, the current account deficit has been constrained, inflation has moderated, the quarterly growth rate is on the rise, the exchange rate is stable, exports have increased and hundreds of projects have been unblocked."
India's economy now the 11th largest in the world, he said.

(Compiled by New Delhi and Mumbai bureau)

Levy of Additional Income Tax on Distributed Income u/s.115R.

CBDT has issued a circular regarding Clarification regarding scope of Additional Income Tax on Distributed Income u/s.115R of IT Act.

This circular states as under:
Section 115R of the Income-Tax Act, 1961 ('Act') provides for levy of additional income-tax on distributed income to unit holders (hereinafter referred to as 'additional inocme-tax').

It has been reported that some field authorities are taking a view that mutual funds/specified companies are required to pay additional income tax under sub-section(2) to section 115R of the Act not only on income distributed by way of dividend but also on payments made at the time of redemption/repurchase of unit as well as at the time of allotment of bonus units to existing investors.

The matter has been examined by the board.  Section 115R is placed under Chapter XII-E of the Act, which is titled as "SPECIFIC PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME" and prescribes special provisions for taxing "distributed income", which is not taxed under any other provisions of the Act.

Sub-section (2) of section 115R of the Act provides that any amount of income distributed by (i) a specified company, or (ii) a mutual fund to its unit holders shall be chargeable to tax and such entitles shall be liable to pay additional income tax on such distributed income at the rates prescribed therein.  The income so distributed by such entities is the dividend paid to the unit holders and is liable to tax under the section.  However, redemption of units or repurchases of units would not attract levy of tax under sub-section (2) to section 115R of the Act as such income is not of the nature of income "distributed" to the unit holders and hence lies outside the purview of this section.

Further, the income so distributed by the mutual fund or specified company in the hands of the recipient under holder is specifically exempt from tax under section 10(35) of the Act, proviso to section 10(35) of the Act stipulates that exemption of income under this section is not applicable to those cases where transfer of units takes place.  The recipient of such income is liable to pay capital gains tax, if applicable, on transfer of such units as per relevant provisions of the Act and shall not be subject to additional income tax under section 115R of the Act.

Similarly, bonus units at the time of issue would not be subjected to additional income tax under section 115R of the Act since issue of bonus units is not akin to distribution of income by way of dividend.  This may be inferred from provisions of section 55 of the Act which prescribes that "cost of acquisition" of bonus units shall be treated as nit for purposes of computation of capital gains tax.

In view of the above position, Central Board of Taxes, in exercises of its powers under section 119 of the act hereby clarifies that additional income-tax under sub-section(2) of section 115R of the Act is to be levied on income distributed by way of dividend to unit-holders of mutual funds or specified companies and receipts from redemption/repurchase units or allotment of additional units by way of bonus unit would not be subjected to levy of additional Income Tax under that section.

Download Circular (Click Here)

Dis-allowance of Expenses u/s. 14A - Clarification - IT

Department of Revenue CBDT has issued a circular - Clarification regarding dis-allowance of expenses under section 14A of the Income-Tax in cases where corresponding exempt income has not been earned during the Financial Year.

This circular says that-
Section 14A of the Income Tax Act, 1961("Act") provides for dis-allowance of expenditure in relation to income not "includible" in total income.

A controversy has arisen in certain cases as to whether disallowance can be made by invoking section 14A of the Act even in those cases where no income has been earned by an assessee which has been claimed as exempt during the Financial Year.

The matter has been examined in the board.  It is pertinent to mention that section 14A of the Act was introduced by the Fiance Act, 2001 with retrospective effect from 01.04.1962.  The purpose for introduction of section 14A with retrospective effect since inception of the Act was clarified vide Circular No. 14 of 2001 as under:
"Certain incomes are not includible while computing total income, as these are exempt under various provisions of the Act.  There have been cases where deductions have been claimed in respect of such exempt Income.  This in effect means that the tax incentive given by way of exemptions to certain categories of income is being used to reduce also the tax payable on the non-exempt income by debiting the expenses incurred to earn the exempt income against taxable income.  This is against the basic principles of taxation whereby only the net income, i.e. gross income minus the expenditure, is taxed.  On the some analogy, the exemption is also in respect of the net Income.  Expenses Incurred can be allowed only to the extend they are relatable to the earning of taxable Income"

Thus, legislative intent is to allow only that expenditure which is relatable to earning of Income and it therefore follows that the expenses which are relatable to earning of exempt income have to be considered for disallowance, irrespective of the fact whether any such income has been earned during the financial year or not.

The above position is further clarified by the usage of term "includible" in the Heading to section 14A of the Act and also the Heading to Rule 8D of I.T.Rules, 1962 which indicates that it is not necessary that exempt income should necessarily be included in a particular year's income, for disallowance to be triggered.   Also, section 14A of the Act does not use the word "income of the year" but "Income under the Act".  This also indicates that for invoking disallowance under section 14A, it is not material that assessee should have earned such exempt income during the financial year under consideration.

Thus, in light of above, Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby clarifies that Rule 8D read with section 14A of the Act provides for disallwoance of the expenditure even where taxpayer in a particular year has not earned any exempt income.

Download Full Circular (Click Here)

What to do ?, if you don't receive your Tax Refund.

First and foremost, congratulations! You are in an enviable position of being eligible for getting money back from the tax department instead of forking out taxes to them.

We can imagine how impatient you must be to receive your refund! So let’s get right down to helping you fix your problem and get your rightful cash back from the IT department.

Step 1: Check the status of your refund
ClearTax lets you check your refund status in just a click. Click here to check your status now.
Keep your PAN number and the Assessment Year for which you want to check refund status handy.

Step 2: Figure out what your refund status means
1.     No e-Filing has been done for this assessment year.
2.     Not Determined
3.     Refund Paid
Note: You may have received a “notice” explaining why  if you see one of these statuses
4.     No demand no refund
5.     ITR processed refund determined and sent out to Refund Banker
6.     Refund Unpaid
7.     Demand determined
8.     Contact Jurisdictional Assessing Officer

Step 3: Take appropriate action
Number
Reasons why your refund hasn’t reached you
Next Steps
1
You may have filed your returns in the physical form and not e-filed. There could be a lag in reconciling paper filings with e-filed returns, hence the delay
Be patient and wait for the IT department to reconcile their paperwork.

2
Your refund request is still being processed. The delay could be at 2 levels – the IT department itself is taking time to process your request
Be patient. The Income Tax department takes time to process refunds. Make sure you’ve sent the ITR-V within 120 days of e-Filing.
OR

Your request has been processed by the IT department and is stuck at the Refund Banker’s end.
Missed sending the ITR-V in 120 days? Then you need to only revise your return and send the new acknowledgement to CPC Bangalore.
3
Your address provided to the IT department is wrong, hence the cheque has not been delivered
Check out the Speed Post reference number for your cheque that is available on the NSDL – TIN website. Armed with this reference number, cross check with your local post office why the cheque hasn’t reached you yet.

If your address has changed since filing your IT return, you can correct it online via www.incometaxindiaefiling.gov.in or contact your Assessing Officer and inform them in writing about the change of address.

To find out who the Assessing Officer is, click on this link and quote your PAN number.
4
The bank account that you submitted to the IT department has changed, hence the refund hasn’t reached you
If your bank account has changed since the time you filed your returns, communicate the new account number and MICR code to your Assessing Officer. The AO will instruct SBI to issue a new cheque to the new account that you have registered with them.
To find out who the Assessing Officer is, click on this link and quote your PAN number.
5
You did not explicitly request a refund while filing your IT returns
Did you forget to include a certain deduction while filing?

You can still revise your return with the refund request included in it if your Income Tax Return hasn’t been processed yet.

Read ClearTax’s guide to revising your Income Tax Return.
6
Your refund request was found to be incorrect as per the IT department’s calculations, hence your refund has been rejected.
Remember, whenever the Income Tax Department begs to differ with the information you’ve provided, they will send you a notice explaining what exactly they have a problem with.

If you received a notice saying your refund was rejected, you still have an opportunity to file a rectification to support your refund claim. Contact the experts at ClearTax for help.
7
Your refund request has been rejected, in fact the IT department finds that you owe them unpaid taxes instead.
You can expect to receive a notice from the Income Tax Department regarding the exact amount of tax outstanding.

Cross check with your own records to verify that your original refund request was correct.

If it was, file a rectification supporting your refund claim. If you find that your refund request was indeed erroneous, pay the tax demanded by the IT department within the time limit mentioned in the intimation.
8
The IT department needs additional documentation from your end to process your refund request
On receiving such a message, contact the Assessing Officer for your region without delay.

To find out who the Assessing Officer is, click on this link and quote your PAN number.

You may contact your Assessing Officer via telephone or by post. However, in order to maintain a record of your actions, we recommend contacting your AO via post and requesting a written acknowledgment from them for the same.

 Source: www.in.finance.yahoo.com

Free Download New PAN Application and Correction in PAN Card.

The procedure for PAN card application will be changed w.e.f. 03.02.2014 as per circular of Income Tax Department. As per the new procedure, 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. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

Application Form for New PAN allotment should be used when the applicant has never applied for a PAN or does not have PAN allotted to him. Applicant may visit ITD’s website www.incometaxindia.gov.in to find whether a PAN has been allotted to him or not.

Income Tax Department has been notified for New PAN Application w.e.f. 01.11.2011 which is as under:

FORM 49A : To be filled by Indian citizens including those who are located outside India.
FORM 49AA: To be filled by foreign citizens.

Application Form for new PAN Card or/and Changes or Corrections in PAN Data for those who have already obtained the PAN and wish to obtain the new PAN card or want to make some changes / corrections in their PAN data, are required to submit their applications in the following form prescribed by Income Tax Department.

Download New PAN Application

Highlights of the Interim Railway Budget 2014-15

This will be Railway Minister Mallikarjun Kharge's maiden budget. He would be under pressure to reach out to all sections with populist measures in an election year.

No major announcements or tariff changes for freight or passenger segments are likely to be announced. Officials said premium trains on 37 identified routes were likely to be the highlight of his speech. Besides, keeping with the tradition, some new trains will also be announced.

Since the fuel adjustment component has already resulted in two hikes in freight and one hike in passenger fares, no further adjustments are expected to be made in the Budget. The UPA-II’s tenure would end with no major breakthrough in improving the financial health of the Railways. The operating ratio, which reflects the expenditure outgo incurred in earning revenue, may hover around 88 per cent, above the Budget target of 87.8 per cent, reflecting inefficiency in operations.

Although earnings and loading targets in freight might be achieved, the worry is the falling average lead per kilometre. The Budget target was set at 645 km and December registered a lead of 622 km. Lead is the average distance travelled by a commodity.

The Plan outlay due to less earnings and more expenditure is set to be cut by about Rs 5,000 crore. The earnings in December went down by Rs 5,000 crore because of lower passenger numbers and falling average lead in freight. Expenditure this year went up by about Rs 4,900 crore. 

Following are the highlights of the Interim Railway Budget 2014-15 presented in the Lok Sabha by railway minister Mallikarjun Kharge:

  • No increase in passenger fares and freight charges 
  • 17 new premium trains, 38 express trains and 10 passenger trains to be launched 
  • Premium AC trains with dynamic fares on Delhi-Mumbai route with shorter advance reservation period 
  • Passenger rail service to Katra and Vaishnodevi to start shortly 
  • Railways to expand services to Meghalaya 
  • More high-speed trains to be launched 
  • Railways exploring low cost option of 160-200 kmph speed trains on select routes 
  • Rail Tariff Authority to advise on fares and freight 
  • Mumbai to get AC EMUs in July 
  • Trains to display info on next stations, arrival times 
  • More Jan Ahaar outlets, escalators at stations 
  • Upgradation scheme extended to AC Chair Car and Executive Chair car passengers 
  • Annual Rail Plan envisaged at Rs 64,305 crore with a budgetary support of Rs 30,223 crore 
  • FDI being enabled for creation of rail infrastructure 
  • Railways to end current year with surplus 
  • Surveys for 19 new lines and 5 doubling of tracks 
  • Railways to encourage transportation of milk 
  • Steps to reduce running of empty freight carriages 
  • Bio-toilet facility to be provided in more trains.

Interest Rate for DCPS for the Fin. Year 2013-14 is 8.70%.

Maharashtra Government has issued a resolution regarding New Pension Scheme interest rate for the Fin. Year 2013-14.  In this resolution Government decided the interest rate for the Financial Year 2013-14 is 8.70%.  This New Pension Scheme is applicable for those employee whos are join in service on or after 01.11.2005, whether as State Government, Non-State Government employee.

This interest rate 8.70% is applied for Fin.Year 2013-14 and effected from 01.04.2013.  The Interest benefit have enjoing all State Government Employee including Zilla Parishad, Graint-in-aid School, Collegegs etc. of Maharashtra State.

Download Full Government Resolution (Click Here)

Penalty deleted on reasonable cause for Non-availability of PAN - IT

Income Tax Department has declared good news for Taxpayee who are payable tax and those who have not own PAN till filing TDS or Income Tax Return i.e. penalty is deleted.  In this regard Income Tax Department has decided that Non-availability of PAN of payee-customer was a reasonable cause for belated filing of TDS return; penalty deleted. Before this on non-submission of PAN, Tax is to be deducted @ higher of prescribed rate or 20%. as per the recent amendments W.e.f 01/04/2010.

CCG Employee & Workers has called for Strike form Today 12:00 AM & onward..

Two days Nationwide Strike on 12th and 13th(Wednesday and Thursday) Feb 2014...

More than thirteen lakhs Central Govt employees shall participate in 2 days nationwide strike, commencing today in pursuance of charter of demands are… 

  1. MERGER OF DA 
  2. INTERIM RELIEF 
  3. CIVIL SERVANT STATUS FOR GRAMIN DAK SEVAKS 
  4. INCLUSION OF GDS IN SEVENTH CPC 
  5. REGULARISATION AND REVISION OF WAGES OF CASUAL LABOURERS. 
  6. DATE OF EFFECET OF 7TH CPC FROM 01-01-2014 
  7. SCRAP NEW PENSION SCHEME & RESCIND PFRDA ACT 
  8. STOP OUTSOURCING, DOWNSIZING, CONTRACTORI- SATION & PRIVATISATION 
  9. FILLING UP OF ALL VACANT POSTS 
  10. FIVE PROMOTIONS 
  11. STOP PRICE RISE 
  12. SETTLE 15 POINT CHARTER OF DEMANDS.

Till this moment, the Central Government has not invited the confederation leaders for talks.

Source: www.7thpaycommissionnews.in

Due date for filing of ITR-V for Asstt.Yr. 2009-10, 2010-11 and 2011-12 upto 31.03.2014

Due date for filing of ITR-V for Asstt. Year 2009-10, 2010-11 and 2011-12 has been extended upto 31.03.2014 by CBDT.  The CBDT has again extends due date for filing of ITR-V for returns filed with refund claims for AY 2009-10, 2010-11 and 2011-12 up to 31.03.2014.

Circular No, 04/2014
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi
Dated the 10th of February, 2014



Subject: - Non-Filing of ITR-V in returns with refund claims-relaxation of time-limit for filing ITR-V and processing of such returns -regarding.

Several instances of grievances have come to the notice of the Board stating that a large number of returns-of-income for Assessment Year ('AY') 2009-2010, which were electronically filed without a digital signature in accordance with procedure laid down under the Income-tax Act, 061 ('Act'), were not processed as such returns became non-est in law in view of Circular No. 3 of 2009 of CBDT dated 21.05.09. Paragraphs 9 and 10 of the said Circular laid down that 1TR-V had to be furnished to the Centralised Processing Centre ('CPC'), Bengaluru by post within 30 days from the date of transmitting the data electronically and in case, 1TR-V was furnished after the stipulated period or not furnished, it was deemed that such a return was never furnished. It was claimed by some of the taxpayers that despite sending ITR-V through post to CPC within prescribed time-frame, the same probably could not reach CPC and thus such 4eturns became non-est. Since ITR-V was required to be sent through (ordinary) post at a 'post box' address, there were no despatch receipts with the concerned senders in support of their claim of having furnished 1TR-V to CPC within prescribed time limit.

2. Subsequently CBDT extended the time-limit for filing ITR-V (re1ati4 to Income-tax returns filed electronically without digital signature for AY 2009-2010) upto 31.12.2010 for 120 days from the date of filing, whichever was later. It also permitted sending of ITR-V either by ordin4ry or speed post to the CPC. However, for the AY 2009-10, some cases were still reported where return was declared non-est due to non-receipt of ITR-V by CPC even within such extended time-frame and conseq4ently the refunds so arising continue to remain held up.

3. Likewise, for AY's 2010-11 and 2011-12, though relaxation of time for furnishing ITR-V was granted
by Director General of Income Tax (Systems), it has been noticed that a large number of such electronically filed returns still remain pending with Income-tax Department for want of receipt of valid ITR-V Certificate at CPC.

4. The matter has been examined. In order to mitigate the grievances of the taxpayers pertaining to non
receipt of tax refunds, Central Board of Direct Taxes, in exercise of powers under section 119(2)(a) of the Act, hereby further relaxes and extends the date for filing ITR-V Form for Assessment Years 2009-10, 2010-11 and 2011-12 till 31.03.2014 for returns e-Filed with refund claims within th4 time allowed under section 139 of the Act The taxpayer concerned may send a duly signed copy of 1TR-V to the CPC by this date by speed post. In such cases, Central Board of Direct Taxes also relaxes the time-frame of issuing the intimation as provided in second proviso to sub section (1) of Section 143 of the Act and directs that such returns shall be processed within a period of six months from end of the month in which ITR-V is received and the intimation of processing of such returns shall be sent to the assessee concerned as per laid down procedure.

5. Provision of sub-section (2) of section 244A of the Act would apply while determining the interest on such refunds.

6. The taxpayer concerned may ascertain whether ITR-V has been received in the CPC, Bengaluru or not by logging on the website of Income-tax Department - http:/incometaxefiling.gov.in/e-Filing/Services/lTR-V Receipt Status.html by entering PAN No. and Assessment Year or e-Filing Acknowledgement Number. Alternatively, status of ITR-V could also be ascertained at the above Website under 'Click to view Returns/Forms' after logging in with registered e-Filing account. In case ITR-V has not been received within the prescribed time, status will not be displayed and further steps would be required to be taken as mentioned above.

7. Hindi version to follow.
(Rohit Garg)
Deputy Secretary to the Government of India

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