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Railway Employee get Enhancement of Dearness allowance upto 100% w.e.f 01.01.2014.

The Railway Board has issued a notification regarding Enhancement in the rate of various allowances.  By this notification it is clears that Railway Employee has got Enhancement of Dearness Allowances upto 100% w.e.f. 01.01.2014.  See the following notification.

Government of India/Bharat Sarkar
Ministry of Railways /Rail Mantraraya
(Railway Board)
PC-VI No. 336
RBE No. 39/2014
No.F(E)1/2011/AL-28/18
New Delhi, dated 29.04.2014
The General Managers,
All Indian Railways etc.
(As per Standard Mailing List)

Sub: Enhancement in the rate of various allowances by 25% as a result of enhancement of Dearness allowance upto 100% w.e.f 01.01.2014.

In accordance with the recommendations of 6th CPC, the rates of various allowances admissible to different categories of railway staff were revised/doubled. The 6th CPC had also recommended that the rates of these allowances will be increased by 25% every time the Dearness Allowance goes up by 50%.  Railway Board, accordingly, issued instructions in respect of increase in rates of various allowances by 25% vide Board's letter of even number dated 13.06.2011.

2. Subsequent to enhancement in the rate of Dearness Allowance to 100% w.e.f. 01.01.2014 queries are being received from some of the Railways regarding further enhancement of rates of these allowances. The matter has been examined and It is clarified that the rates of allowances listed in the enclosed Annexure shall increase by a further 25% (over original 6th CPC rate prescribed by Ministry of Railways) with Dearness Allowance now having gone up to 100% w.e.f. 01.01.2014.

3. The terms and conditions for grant of these allowances will remain the same.

4. Hindi version is enclosed.

5. Kindly acknowledge receipts

DA: as above

sd/-
(Amir Chand Jain)
Dy. Dirs Finance(Estt)
Railway Board

Source : AIRF

No Relief u/s. 80-IB, if Assessee filed return after Due Date. - ITAT

IT: Where assessee had sufficient reasons which prevented it from producing various documents before Assessing officer, documents sought to be admitted as additional evidence

IT: Where assessee had not filed return within due date as provided under section 139(1) in violation of section 80AC, he was not entitled to avail deduction under section 80-IB

IT: Where power plant was ready and no further major purchases had been made on account of power plant till August 2008, and plant was commissioned, same was entitled for depreciation

IT: Section 80B(5) creates no bar in setting off loss of power plant from income of rice mill

IT: Provision for allowance of additional depreciation could be considered in case of assessee engaged in business of generation or distribution of power only form assessment year 2013-14

IT: Where it was found that during search, stock had been valued on approximate basis and exact valuation had not been done, addition made on account of unexplained adjustments was to be deleted

Source: www.taxmann.com

Latest e-Book on Amendment of Direct Taxes, 2013

The Finance Minister had announced to implemented Direct Tax in the Budget. In this regard continuously amendments are comes for better Direct Tax Code. There was heated discussion on the various provisions of the Bill which included over 30 amendments in various sections of the Income-tax Act with retrospective effect. There was lot of protest in India and abroad as most of these amendments would affect non-residents and will have adverse effect on global trade. In-spite of this protest, the Government could manage to get through the legislation with some changes. The Finance Act, 2012, containing 119 sections relating to Direct Taxes is now passed by both Houses of the Parliament and received the assent of the President on 28-5-2012 and now latest amendment of Direct Tax, 2013 e-book released by Finance Department which is as under with some major amendments

Income Tax:
  • Relief in income tax
  • Rates of income tax
  • Surcharge on income tax
  • Education cess
Tax Deduction and Collection at Source (TDS and TCS):
  • Section 193
  • Section 194J — TDS from fees from professional or technical services
  • Section 194LA
  • Section 194LC
  • Section 201 — Failure to deduct tax at source
  • Section 206C — Tax Collection at Source (TCS)
  • No Advance tax payable by senior citizens u/s.207
Exemptions and deductions :
  • Charitable trust
  • Section 10(10D) — Deduction of life insurance premium
  • Section 10(23FB) — Venture Capital Company (VCC) and Venture Capital Funds (VCF)
  • Section 10(23BBH)
  • Section 10(48)
  • Section 40(a)(ia)
  • Section 80C
  • Section 80CCG etc.

Important Announcement for All Taxpayee and Income tax Non Filers!

The Income-Tax Department NEVER asks for your PIN , passwords or similar access information for credit cards, banks or other financial accounts through e-mail. The Income-Tax Department appeals to taxpayers NOT to click on hyperlinks contained in such phishing mails, NOT to respond, and NOT to share information relating to their credit card, bank and other financial details/accounts.

Please change your passwords periodically and NEVER reveal your passwords details to anyone.

Please update your contacts as and when it changes. This will enable us to notify you on various critical information / notification

In 2013, Income Tax Department issued letters to 12,19,832 non-filers who had done high value transactions.

In 2014, Income Tax Department has identified additional 22,09,464 non-filers who have done high value transactions. You may be one of them. Act Now!

Log on to e-filing portal at https://incometaxindiaefiling.gov.in
  • If you are not registered with the e-filing portal, use the ‘Register Yourself’ link to register.
  • You can view ‘Information Summary’ under the ‘Compliance’ module and submit whether it pertains to you or any other person you know.
  • If you have already filed the return, you should submit the details under ‘Filing of Income Tax Return’. If not, you should pay your taxes and file the return.
  • You can keep a print out of submitted response for record.

How to make online tax payment and what are its advantages to Taxpayee ?

There are many facility to make payment of Tax by online process, but due to non-awareness about net-banking every taxpayee feeling inconvenient with this.  Therefore the following instructions to make payment of Tax by online process from home/office, we hope these instructions may help to all Taxpayee.
  • Open a net-banking account with any of the banks listed above.
  • Go to website www.incometaxindia.gov.in , click on ‘pay taxes on-line’.
  • Fill in the required challan online. Help is available on screen as FAQ, downloads etc.
  • Make tax payment through net-banking account online.
  • A challan counterfoil will be available instantaneously on the screen with CIN (challan identification number). The Challan Identification Number (CIN) on this counterfoil should be quoted in Return of Income.
  • Print the counterfoil and also save it in the computer if required.
  • Check if your payment has reached the Income Tax Department at https://tin.tin.nsdl.com/oltas/servlet/QueryTaxpayer.
The advantages of online paying taxes:
  • You can pay taxes from any location at any time through your net-banking account.
  • Instant transfer of funds from your account.
  • What you write on the e-challan will be directly sent to Income Tax Department. Banks will not do any data entry.
  • You can save/print the challan copy and the receipt copy.
  • As soon as your Bank authorizes payment of the amount, you will receive a clear, legible receipt/counterfoil from your Bank.
  • Transaction id of the e-payment transaction will be available to you in your bank statement.
  • You can check online if your money has actually reached the I-T Department. For this you have to go to Tax Information Network Website: https://tin.tin.nsdl.com/oltas/index.html and click the box
The facility is available about how to view Tax Credit Statement/Form 26AS  View Demo

New Form 16 (TDS Software) ver. 1.4 for Asstt. Year 2014-15

CBDT has changed the Form 16 Format which is applicable for "Salaried Employee".  In this new format there are two parts i.e. Part "A" and Part "B", Parts "A" is mandatory for Government Employee except other Employee.  The part "A: is download from Income Tax TRACES Portal and another is Part "B", TDS Deductor can be prepare manually.

In the Part "A" of new Form 16, have details of Deduction and Deposit of Tax in to the Central Govt. and in the Part "B" of Form 16 details contains of employees Salary. 

As per the new amendments in Form 16 by CBDT, new version 1.4 of Form 16 (TDS Certificate) Software is available with features of Tax Calculation, Form-16, Month-wise Salary Statement with admissible deductions etc. for the Fin. Year 2013-14 and Asstt. Year 2014-15.  This software maintain the data of 1000 Employee.

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".


      • Download New Ver. 1.4 (Form 16) Software

        Important Dates in the Month of May-2014.

        Important dates in the month of May-2014 for TDS/TCS Deposit, Service Tax Payments, DVT/CST challan, manual & online Return, TDS Certificate Issue & TDS Return of 4th Quarter.

        All the income tax due dates, last dates, in the month of May-2014. The due dates includes all TDS Returns, TDS Statements, income tax returns, income tax payments & TDS certificates along with form name and period. The assessee can find their obligation toward income tax department through this income tax calendar which is as below:






        Month & Date
        Last Date for Submission / Payments etc.
        May 5
        Service Tax Payment
        Other than Individuals or Partnership Firm
        May 7
        TDS / TCS Deposit (Collection in the month of April)
        May 15
        Quarterly statement of TDS / TCS in respect of tax deducted / collected for the quarter ending March 31, 2014.
        TDS Salary : Form 24Q, TDS other Form 26Q, TDS non-resident : Form 27Q, TCS : Form 27EQ
        May 25
        DVAT / CST Challan Deposit and Online Return Submit for Monthly Dealers
        May 28
        DVAT / CST Manual Return submit for Monthly Dealers
        May 30
        Quarterly TDS Certificate on Form No. 16A ( in respect of tax deducted for payments other than salary ) or quarterly TCS Certificate on Form No. 27D ( in respect of tax collected ) during the quarter ending March 31, 2014.
        Submission of statement by a non-resident (under section 285) having a liaison office in India for the financial year 2013-14.
        May 30
        Issue of TDS Certificate
        May 31
        Annual certificate of tax deducted at source on Form 16 / Form 12BA to employees in respect of salary paid and tax deducted during 2013-14.
        Return of tax deduction from contributions paid by the trustees of an approved superannuation fund.
        May 31
        Application for allotment of PAN in Form 49A.
        Form 49 is Applicable


        Expected D.A. will be increased by 7% from July, 2014.

        Expected Dearness Allowance/Dearness Relief may will be increased by 7% from July, 2014 on the basis of AICPIN index if 2 or 3 points increased upto June, 2014. Now as per the All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of February, 2014, Dearness Allowance is comes 105%. One of the possible reasons for the dampening interest could be the fact that unlike last time, there is not going to be a DA hike. Although it is very well known that the hike is based on price rise and inflation, it probably feels to them as if something was lost.

        D.A. CALCULATION WITH INPUTS OF CPI(I-W) BASE YEAR 2001=100

        We are aware of the fact that a number of you are very keen on learning how to calculate the Dearness Allowance. Hence, we created this table. At a stage, we ourselves were surprised by the response that it had received.

        Let us see, in detail, how DA is calculated. The calculations are very easy.

        First is the month. Then comes the CPI (IW) Base Year 2001=100 and the relevant data. In the next column, you have the sum total of all the 12 months, i.e., the total of the declared AIPCIN numbers for the past 12 months. Next comes the division of the sum total by 12.

        The next step is the most crucial one. You will have to find out by how much it exceeds 115.76. You will have to calculate the excess as percentage of 115.76.

        (12 Monthly
        Average)- 115.76
        ---------------- X 100 = % increase in prices (ignore decimals)
             115.76

        At the most, one can expect an increase of 7%. That too is not for sure. All that depends on the soon to be announced AICPIN points for balance months.  Expectation of DA/DR for July, 2014 may understood with table is given below:

        No
        Probabilities
        Expected Increase in Dearness allowance from      July 2014
        Expected  DA from July 2014
        1
        If this declining trend continues for remaining 5 Months by 1 or 2 points
        3%
        103%
        2
        If the trend continues with movement between plus or Minus 2 points
        5%
        105%
        3
        If it continues with increasing trend by 2 points
        7%
        107%

        How to avoid default in TDS Return ?

        One can avoid defaults in the TDS statements, by way of adherence to the following basic principles:  
        • Timely Payment of total taxes deducted/ collected
        • Correct Reporting with regard to PANs, Tax Rate and Challans
        • Complete Reporting for all Deductees
        • Timely filing of TDS Statements  
        Following are some important facts to be adhered to, while submitting TDS statements, to avoid each type of Default:
        Late Payment Defaults:
        • The taxes deducted must be deposited within the due dates, as prescribed by Rule 30 of the Income Tax Rules 1962.
        • Also refer: Important Guidelines for payment towards liability on account of Tax Deducted / Collected at Source  
        Short Payment Defaults:
        • All the taxes deducted must be deposited with challan 281 quoting correct TAN, Assessment Year, Minor Head etc.
        • Challan details/BIN details quoted in the statement should be correct. Challans can be validated by using Challan Status Inquiry(CSI) file. Correct details can also be verified at TRACES in “Challan Status” menu under “Statement Status” after login.
        • There should not be any difference in the amounts quoted in “Deducted” and “Deposited” columns of the deductee rows.
        • Challans quoted in the statement must have balance available for consumption against specified deductee rows. Available balance can be verified at TRACES in “View Consumption Details” under “Statements/ Payments” menu after login.
        • Government Deductors need to report Book entry flag as “Y” in challan details.  
        Short Deduction Defaults:
        • Taxes must be deducted at correct rates specified in the Act. The Rate table can be accessed at TRACES for correct tax rates.
        • Correct flags (A, B, C, T and Y) must be raised for no deduction/ lower deduction/ higher deduction, as appropriate.
        • The PAN for deductees must be valid and correct. TAN-PAN Master can be downloaded from TRACES and be used to file statement to avoid quoting of incorrect and invalid PANs.
        • Correct and valid 197 Certificates must be specified. E-tutorial can be referred to for the purpose of validation.
        • For 24Q statements, correct flags should be raised for Woman/ Man/ Senior Citizen/ Super Senior Citizen deductees, as may be appropriate.
        • DTAA flag “B” must be raised under section 195 of the Act, at the time of filing 27Q  statements.
        Late Deduction Defaults:
        • Taxes must be deducted at the time of Payment or Credit, whichever is earlier.  
        Late Filing Defaults:  
        • Quarterly TDS/TCS statements must be filed within due dates of filing statements as prescribed by Rule 31A of the Income Tax Rules, 1962. The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014.
        Source: www.blog.tdsman.com

        Tax-saving investment can be done within calendar month.

        Taxpayers looking to save taxes on long-term capital gains, but not willing to invest in a house property, are eligible to invest the capital gains in specified bonds of public sector undertakings like National Highway Authority of India (NHAI) and Rural Electrification Corporation (REC) and save capital gains taxes under section 54EC of the Income Tax (I-T) Act. These bonds offer a lock-in period of three years beyond which they can be liquidated. The interest rate offered by the bonds is approximately 6 per cent and the interest earned on the bonds is taxable.

        These bonds are a good option available for taxpayers to save capital gains taxes without committing money over the long term. The section, however, restricts the amount of exemption to Rs 50 lakh invested in these bonds per financial year.

        Section 54EC of the I-T Act provides that where the long-term capital gain is invested by a taxpayer, at any time within a period of six months after the date of transfer of the capital asset, in the specified bonds, then the resulting capital gains will be exempt to the extent of amount invested in the bonds. Recently, in a case that came up before the Special Bench of Income

        Tax Appellate Tribunal, Ahmedabad, a taxpayer had sold his flat for a total consideration of Rs 64 lakh. In his return of income, the taxpayer had computed the capital gains as nil. The basis for the nil capital gains was that the gain was stated to be approximately Rs 56 lakh; however, he had made the investment in NHAI bonds to the tune of Rs 45 lakh and claimed a deduction under section 54EC of the Act. The balance gains of Rs 12 lakh were invested in a capital gain account scheme.

        During the course of assessment proceedings, the tax officer observed that the investment in NHAI bonds of Rs 45 lakh for the purpose of claim of deduction u/s 54EC was purchased on December 17, 2008 as per the entry in the bank pass book. The tax officer further observed that the sale document was registered on June 10, 2008 and hence the taxpayer was required to purchase the bonds within six months of the date of registration.

        The taxpayer informed the tax officer that the last date of expiry of six months from the date of transfer of the house property was December 10, 2008; however, he had tendered the cheque along with the application for the bonds on December 8, 2008 to the bank, which was within the period of six months from the date of sale. The taxpayer put up another stand that the time limit for investment in bonds is available till the end of month of December 2008. But tax officer denied the exemption to the taxpayer in the assessment order.

        The taxpayer then preferred an appeal with first appellate authority, where he submitted that as the application was submitted to the bank along with the cheque before the last day of the expiry of six months from the date of sale, he was entitled to the deduction u/s 54EC. However, as the date and time stamp on the application copy was not clear, the appellate authority could not ascertain its validity. Hence, the authority too rejected the taxpayer's claim. When the matter came up before the Special Bench, the taxpayer argued that the term 'month' as used in the section 54EC has not been defined in the Act. Consequently, the same should be interpreted as per the definition given under the General Clauses Act where the term 'month' is reckoned as per the British calendar.

        The tax officers argued that in respect of the computation of period for the purpose of prescribing a limitation under the Act, the wordings are unambiguous. As per the language, a particular date is to be taken into account for the purpose of calculation of days/months. In view of the same, there was no necessity to take the help of "General Clauses Act". Therefore, the tax officers claimed that for the purpose of section 54EC, a month is a period from specified date in a month to the date numerically corresponding to the date in the following months less one.

        The Special Bench observed that the crux of the issue at hand is whether for the purposes of section 54EC, the period of investment should be calculated as six months after the date of transfer or to be reckoned as 180 days from the date of transfer. The Bench observed that the phrase "within a period of six months after the date of transfer" has not been used in the Act for any other provisions and is used only for the purpose of investment in certain specified assets in respect of computation of capital gains. It observed that the Act has provided an incentive to a taxpayer, who has earned long-term capital gains, to get relief if the gains are invested in any specified assets, provided the investment has been made at any time within a period of six months after the date of such transfer.

        The Bench relied on other judgements on the interpretation of the term month and it was observed that in majority of the cases, the expression six months means six calendar months and not 180 days. In the absence of the definition of the word 'month' in the Act, the one given in the General Clauses Act shall prevail. As there was no dispute that the taxpayer had invested the money in capital gains bonds, the claim that the investment was done with a delay of few days does not support the purpose of the incentive offered by the section. Accordingly, the Special Bench allowed the taxpayer's claim.

        Source: www.business-standard.com

        Latest RPU 3.9 Ver. for e-TDS/TCS Return Preparation & Correction w.e.f. 26.04.2014

        NSDL has developed software called e-TDS/TCS Return Preparation Utility (RPU) to facilitate preparation of e-TDS/ TCS returns. This is a freely downloadable VB based utility. Separate utilities are available for preparation of each type of return.

        ITD has notified revised file formats for preparation of TDS and TCS returns in electronic form. Deductors/collectors can prepare the e-TDS/TCS returns as per these file formats using in-house software or any other third party software and submit the same to any of the TIN-FCs established by NSDL. Deductors/collectors can also directly upload the e-TDS/TCS returns through NSDL-TIN website.

        Key features of RPU 3.9
        “Particulars of the Person Responsible for Deduction of tax” option under “Form” page of RPU:
        “Same as above” check box has been provided under “Particulars of the Person Responsible for Deduction of tax” option of “Form” page. On selecting this, fields such as Flat No., Area/Location, Name of Premises/Building, Road/Street/Lane, Town/City/District, State and Pincode will be auto-populate.
        The said option is available for Regular TDS/TCS statements only. 
        While saving TDS/TCS file through RPU, file name will auto populate in predetermined format (Example: While saving a Regular file for Form 24Q Q4 through RPU, file name “24QRQ4” will auto populate under saving option. Similarly, while saving a Correction file for Form 26Q Q4, file name “26QCQ4” will auto populate under saving option.
        Addition of deductee records for Regular TDS/TCS statements in RPU:
        New window has been provided for addition of deductee records for Regular TDS/TCS statements in RPU. With the use of this, user can map corresponding deductee record to the respective challan. Those users who don’t want to use this option may proceed by clicking on “Skip this step” button.
        Error message for negative values in RPU:
        Error message will populate for any negative values present under amount fields of Challan as well as Annexure I (Deductee details) of RPU.
        Challan balance as per consolidated file downloaded from TRACES:
        New column i.e. “Challan balance as per consolidated file” (No. 23 under “Challan” details) has been added in RPU which will reflect unutilized balance available in challan based on consolidated file downloaded from TRACES.
        Incorporation of latest FVU Version 4.2 and 2.138.

        Download RPU 3.9 Ver.(Quarterly e-TDS/TCS statements from FY 2007-08)

        Correction Statements

        Corrections required in the regular quarterly statements can be furnished by submitting a correction statement in the prescribed format. The following utilities can be used to prepare correction quarterly statements:

        Download RPU 3.9 Ver.(Quarterly e-TDS/TCS statements Correction from FY 2007-08)

        Latest FVU version 4.2 and FVU 2.138 released for e-TDS return Q-4 applicable w.e.f. 26.04.2014

        TIN-NSDL has provided latest FVU ver. 4.2 & 2.138 w.e.f. 26.04.2014 with new features.  This new version contains NIL challans in TDS/TCS Statements, Relaxed for Form 24Q, Q4.  As you may aware with the old features of FVU 4.1 ver. Salaried Deductors is deduct TDS or Non-Deduct TDS in amy of first three Quarter i.e. Q1, Q2, Q3 for the Financial Year 2013-14 by any way but Q4 is madatory e-TDS return even if no TDS has been deducted from any Employee in Q4.

        Main Key feature of FVU version 4.2

        • Nil challans in TDS/TCS Statements will be permitted with no deductee records for Form 24Q Q4: 

        The validations with respect to Nil challan statements have been relaxed for Form 24Q Q4 for all financial years. Deductors will be permitted to submit Form 24Q Q4 for all Financial Years with NIL challans and no corresponding deductee records.  

        • Validation for TDS amounts in case of higher deduction flag for Form 24Q pertaining to FY 2010-11 onwards: 

        In case deductor has provided flag for higher rate of deduction i.e., “C” in the TDS statement Form 24Q, the TDS amount for such deductee records should not be less than 20% of the amount paid/credited. This validation is also applicable for correction statement wherein new records are added. The same will not apply for those correction statements where deductee records are being updated.

        Example: In case the deductor has provided higher deduction flag as “C” due to non-availability of PAN and the amount paid/credited is `10,000/-, the corresponding TDS amount deducted for this record should not be less than `2,000/ (20% of `10,000).

        • Validation for field “Form 15CA Unique Acknowledgement Number (if available)” in Annexure I of Form 27Q applicable for FY 2013-14 onwards: 

        Validation for the field “Unique acknowledgement of the corresponding Form no 15CA (if available)” in Annexure I has been modified to permit any alpha-numeric value between 12 to 15 characters in the Form 27Q statement.

        • Applicability of FVU version: 

        From April 26, 2014, FVU version 4.2 would be mandatory for statements pertain to FY 2010-11 onwards.

        Download FVU 4.2 Ver. (FVU for quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards)

        Key feature of FVU version 2.138

        • Nil challans in TDS/TCS Statements will be permitted with no deductee records for Form 24Q Q4: 

        The validations with respect to Nil challan statements have been relaxed for Form 24Q Q4 for all financial years. Deductors will be permitted to submit Form 24Q Q4 for all Financial Years with NIL challans and no corresponding deductee records.  

        • Applicability of FVU version: 

        From April 26, 2014, FVU version 2.138 would be mandatory for statements pertain to FY 2007-08 to FY 2009-10.

        Download FVU 2.138 Ver. (FVU for quarterly e-TDS/TCS statement up to FY 2009-10)

        All about Long Term Capital Gain on Sale of Any Residential House Property.

        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 you are planning to purchase a flat, you 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, you are advised to invest the amount of LTCG in one house property only. You may further note that, for claiming an exemption u/s 54, you 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 you are not able to utilize entire LTCG for new house property, you 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 you are planning to invest in specified bonds, ensure to make the investment within a period of 6 months i.e., before 21.03.2014.

        You 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.

        You can incorporate the name of your wife also in the sale deed for the name sake. Ensure to make the payment through your account only so that you would be able to prove that your wife don’t have any ownership stake in the property & her name is incorporated in the sale deed for the convenience only. 

        If you are not sure of investing LTCG for purchase or construction, you can safely & timely think of claiming an exemption u/s 54EC by investing it in the specified bonds issued by NHAI/REC.

        Updated Form 16 Software for Employee for Asstt. Year 2014-15 Free Download.

        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



              No need to PAN No. register to view Tax Credit Statement or Form 26AS Statement.

              The TRACES has provided new advance features, to view 26AS Statement or Tax Credit Statement for Asstt. Year 2014-15 without register PAN No. With this features, Taxpayee can view their Tax Credit or For 26AS Statement by the providing of mandatory field i.e. PAN of Deductee*, TAN of Deductor*, Financial Year*, Quarter* and Type of Return* etc.

              The following pictures are help you to view Tax Credit Statement:



              Tax Payer can View of their TDS/TCS Credit w.e.f. Financial Year 2007-08 and onwards. To know whether your Deductor / Collector has filed Quarterly TDS / TCS Statement and provided your PAN, provide details as below:


              Details provided by TRACES in Form 26AS as under:

              • Details of tax deducted on behalf of the tax payer by deductors
              • Details of tax collected on behalf of the tax payer by collectors
              • Advance tax / self-assessment tax / regular assessment tax etc. deposited by the tax payers (PAN holders)
              • Refund received during the financial year
              • Details of transactions in Mutual Fund, Shares and Bonds, etc. (as reported by AIR filer)

              Complete Procedure to correct TDS Statement online without Digital Signature at TRACES

              CPC (TDS) has provided new enhanced features, to further add to the convenience of online facility of filing corrections to the TDS Statements. With this feature, you will be able to submit Online Corrections at TRACES without even having a Digital Signature. Currently over 20,000 deductors are already using the online facility for corrections.

              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 list. Click to “Proceed” in absence of Digital Signature.

              Pre-requisites for filing online Corrections:

              • Digital Signature is not mandatory to be registered on TRACES for raising online corrections.
              • Only Challan Correction is permissible in absence of Digital Signature. Digital Signature enables you to carry out PAN Corrections as well.
              • Correct KYC information needs to be submitted for the purpose of validation.
              • 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 without Digital Signature:
              Challan/BIN Correction

              • A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
              • Matched challans can be corrected for “Amount Claimed as Interest and Others”. Please note that Matched challans cannot be tagged.
              • Unmatched challans can be corrected 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 above challans can be reset by clicking the Reset tab, if this requires to be further corrected.

              Additional Functionalities available with Digital Signature:
              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.

              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.
              Source: www.blog.tdsman.com

              5 Easy Steps for e-TDS/e-TCS Return Filing for Asstt. Year 2014-15

              "Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003". It is applicable to all deductors furnishing their TDS/TCS return in electronic form. As per this scheme:
              • It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS/TCS returns in electronic form (e-TDS return/e-TCS Return).
              • From F.Y. 2004-2005 onwards furnishing TDS/TCS returns in electronic form is also mandatory for government deductors in addition to corporate deductors.
              • Deductors (other than government and corporates) may file TDS/TCS return in electronic or physical form.
              • NSDL e-Governance Infrastructure Limited (NSDL) as the e- TDS/TCS Intermediary (appointed by ITD) receives, on behalf of ITD, the e-TDS/TCS returns from the deductors.
              The 5 easy steps for e-TDS/e-TCS Return are as follows:

              Step : 1
              The data structure (file format) in which the e-TDS / e-TCS return is to be prepared has been notified below:
              Quarterly Return :
              For Regular Statements pertaining to FY 2010-11 onwards:
              For Regular Statements up to FY 2009-10
              For Correction statements pertaining to FY 2010-11 onwards:
              For correction statements up to FY 2009-10:
              Step : 2
              e-TDS/e-TCS return in accordance with the file formats is to be prepared in clean text ASCII format with 'txt' as filename extension. e-TDS/e-TCS return can be prepared using in-house software, any other third party software or the NSDL e-TDS Return Preparation Utility .
              Sample files prepared as per the file formats given below for reference.
              Quarterly Return :
              For statement pertaining to FY 2010-11 onwards:
              For statement upto FY 2009-10
              Step : 3 
              Once the file has been prepared as per the file format, it should be verified using the File Validation Utility (FVU) provided by NSDL.
              * FVU for Quarterly Returns: e-TDS / e-TCS returns prepared upto FY 2009-10 (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated using this utility.
              * FVU for Quarterly Returns: e-TDS / e-TCS returns prepared for FY 2010-11 and onwards (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated using this utility.
              Step : 4 
              In case file has any errors the FVU will give a report of the errors. Rectify the errors and verify the file again through the FVU.
              Step : 5
              The upload file generated by the FVU on successful validation is to be furnished to a TIN-FC or directly uploaded through the NSDL web-site.
              Quarterly Returns:
              Each e-TDS/TCS return saved in a CD/Pen Drive to be submitted along with a signed copy of the control chart (Form 27A). With effect from February 1, 2014, it is mandatory to submit Form 27A generated by TDS/TCS FVU (File Validation Utility) duly signed, along with 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. .

              Steps for filing Rectification request on receipt of demand notice due to mis-match of Income Tax

              The CBDT has noted that many taxpayers are committing mistakes while furnishing their tax credit claims in the return of income.

              Such mistakes include:

              • quoting of invalid/incorrect TAN;
              • quoting of only one TAN against more than one TAN tax credit;
              • furnishing information in wrong TDS Schedules in the Return Form; furnishing wrong challan particulars in respect of Advance tax, Self-assessment tax payments etc.

              As a result of these mistakes, the tax credit cannot be allowed to the taxpayers while processing returns despite the tax credit being there in 26AS statement. The CBDT, therefore, desires the taxpayers to verify if the demand in their case is due to tax credit mismatch on account of such incorrect particulars and submit rectification requests with correct particulars of TDS/tax claims for correction of these demands.

              The procedure for filing online rectification request has been given below:

              Rectification Request

              Rectification request can be filed u/s 154 of the Income Tax Act by the taxpayer in case of any mistake apparent from the record.

              Prerequisite to file Rectification request

              1. The Income Tax Return for the Assessment Year should have been processed in CPC, Bangalore.

              2. An Intimation under Section 143(1) OR an order under Section 154 passed by CPC, Bangalore for the e-Filed Income Tax return should be available with the taxpayer.

              3. For Electronic returns filed and processed at CPC, only online rectifications will be considered.

              4. If the refund arising out of return processed at CPC is adjusted against the demand of other Assessment Years and then the assessee is challenging the demand itself, in that case

              Rectification application has to be filed for the demand year, if the demand was raised by CPC then online application has to be filed
              for the demand raised by the Field Assessing Officer, the application has to be filed before him.
              5. No rectification has to be filed for giving credit to taxes paid after raising the demand. To file your Rectification, you should be a registered user in e-Filing application.

              Step By Step guide on how to file rectification at Income Tax efiling Site:

              To file your Rectification, you should be a registered user in e-Filing application.

              Step 1 – LOGIN to e-Filing application and GO TO –> My Account –> Rectification request.

              Step 2 – Select the Assessment Year for which Rectification is to be e-Filed, enter Latest Communication Reference Number (as mentioned in the CPC Order).

              Step 3 – Click ‘Submit’.


              Step 4 – Select the ‘Rectification Request type’.


              Step 5 − On selecting the option ‘Taxpayer Correcting Data for Tax Credit mismatch only’, three check boxes, TCS, TDS, IT, are displayed. You may select the check-box for which data needs to be corrected. User can add a maximum of 10 entries for each of the selections. No upload of any ITR is required.



              Step 6- On selecting the option ‘Taxpayer is correcting the Data in Rectification’ − select the reason for seeking rectification, Schedules being changed, Donation and Capital gain details (if  applicable), upload XML and Digital Signature Certificate (DSC), if available and applicable. You can select a maximum of 4 reasons.



              Step 7 – On selecting the option, ‘No further Data Correction required. Reprocess the case’ − check-boxes to select- Tax Credit mismatch, Gender mismatch (Only for Individuals), Tax/ Interest mismatch are displayed. User can select the check-box for which re-processing is required. No upload of an ITR is required.

              Step 8 – Click the ‘Submit’ button.

              Step 9 – On successful submission, following message is displayed.
              Step 10 – You can check status of rectification request online through your account login. Further you can withdraw rectification request, if you have filed it incorrectly or if it is no more required.

              Source: http://blog.tdsman.com/