Form 16 / Form 16A Latest PDF Generation Utility Ver. 1.3L Download from TDSCPC.

Every TDS Deductee/Deductor well know about that part A of Form 16 certificate (TDS from Salary) and form 16A (TDS from Contractor, Interest, Commission etc.) is required to downloaded from TDSCPC website www.tdscpc.gov.in.. Latest PDF Generation Utiity ver. 1.3L has been avaliable at TRACES (www.tdscpc.gov.in) web site to covert TDS Certificate (Form 16 (Part A) and Form 16A) which is in ".TXT" format file into ".PDF" format with new format which is applicable for Asstt. Year 2014-15 by the Income Tax Department.

Remember

• The due date to download Form 16 (Salary Person) for Financial Year 2013-14 is 31st May 2014.
• The due date to download form 16A (Other than Salary Person) for Q4 Fin. Year 2013-14 is 30th May, 2014

Notes: If you are not registered with TRACES then first register your TAN at Traces and start the procedure of download of Form 16 (Part-A) and Form 16A.

All the Instructions regarding Download TRACES PDF Generation Utility is as follows:

Download TRACES PDF Generation Utility

Deductor can download TDS Certificate (Form 16 (Part A) and Form 16A) from TRACES. The file will be provided in text format and will contain certificate details for all requested PANs. Text file is password protected and password will be ''.

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

Procedure to install utility

• Download the PDF Generation Utility by logging in to TRACES. Click on 'Requested Downloads' under 'Downloads' menu then click on 'TRACES PDF Generation Utility' link
• Unzip and save the utility on your desktop
• Double-click on the utility (JAVA) and click on 'Run'
• Utility will be installed on your desktop
• Click here for installation procedure

 Procedure to convert text file into PDF

• Open the utility from your desktop and select the text file
• Select the digital signature to digitally sign the Form 16 / 16A
• Generate PDFs
• If PDF is not digitally signed, deductor should manually sign the printed Form 16 / 16A before sending it to Tax Payers

Download TRACES-PDF-CONVERTER Ver. 1.3L

Notes:

• TRACES PDF Generation Utility should be used to convert text file for Form 16 / 16A into individual PDFs
• Download the utility and install it on your desktop
• Pass the text file through the utility to generate PDFs for individual PANs
• You can opt for manual / digital signature for the PDFs
• File name for Form 16 / 16A text file will be as mentioned below. TAN will be masked
  • Form 16 - _Form16_, e.g., ABCxxxxx5E_Form16_2012-13.zip
  • Form 16A - _Form16A__, e.g., ABCxxxxx5E_Form16A_2012-13_Q2.zip
• Password for Form 16 / 16A text file is TAN of deductor. Enter password to open file
• File name for individual PDF files will be as mentioned below. PAN will be masked
  • Form 16 - Form16__, e.g., Form16_2012-13_ABCxxxxx4F
  • Form 16A - Form16A___, e.g., Form16A_2012-13_Q2_ABCxxxxx4F
• There is no password for individual PDF files 

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Flag raised for 15G/H despite Income exceeding the amount of exemption.

CPC(TDS) feels glad to provide you with the new feature of downloading Form 27D, the Tax Collection Certificate for Deductees forming part of TCS Statements, filed in the form of 27EQ.

Centralized Processing Cell (TDS) has observed from its records that Flag "B" (for 15G/H Forms) has been wrongly raised in the quarterly TDS Statements as per the provisions of section 197A(1B) of the Income Tax Act, 1961. Following are the provisions of section 197A(1B) for your ready reference:

"The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax".

What is Form 15G/ H and its relevance :

Under section 197A of the Income Tax Act 1961, Form 15G / H is a self-declaration, which is provided by a person resident in India (not being a Company or Firm) to their deductor that the tax on his estimated total income of the previous year, in which such income is to be included in computing his total income, will be NIL.

The Declaration is made in the following Forms :

• Form 15H - For Senior Citizens
• Form 15G - For other than Senior Citizens

Consequences, if deductor wrongly raises Flag "B" for Forms 15G/H :

If the deductor raises Flag "B" for non-deduction of tax, despite the total payments made by him exceeding the taxable amount, this results into incorrect reporting in the TDS Statements.

Your attention is invited to provisions of section 201 of the Act, which reads as follows :

• Where any person who is required to deduct any sum, does not deduct or does not Pay or after deduction, fails to pay, the whole or any part of the tax, then such person shall be deemed to be an assessee in default in respect of such tax.

Under section 277 of the Act, if a person makes a statement in any verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true is punishable.

This may be noted that obligation to report each transaction correctly in the TDS statements, falls on the deductor and non-compliance amounts to incorrect verification of correctness of TDS statement.

You can reach out to us on ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

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No need to submit Provisional Receipt with e-TDS/TCS Revised Return w.e.f. 01.06.2014

As per NSDL-Tin Curcular No. NSDL/TIn/2014*024 dated 28.05.2014 there is no need to submit Provisional Receipt with e-TDS/TCS Revised Return w.e.f. June 1, 2014, Deductors/Collectors need not submit copy of Provisional Receipt of original statement and Statement Statistics Report (SSR) for furnishing e-TDS/TCS correction statement.

Income Tax Department has Revised procedure for acceptance of e-TDS/TCS correction statements and upload of scanned documents to TIN Central System. The same is intimated vide Circular No: NSDL/TIN/2014/024 dated 28 May, 2014. The revised procedure is applicable with effect from June 1, 2014

In view of the above circular, TIN-FCs are required to accept e-TDS/TCS correction statements from Deductors/Collectors with .FVU file and duly signed Form 27A (generated from the latest File Validation Utility). The copy of Original Provisional Receipt and Statement Statistic Report (SSR) need not be accepted from Deductor/Collector.

The Circular produced is given as under:

Circular No: NSDL/TIN/2014/024

May 28, 2014

Subject: Revised procedure for acceptance of e-TDS/TCS correction statements and upload of scanned documents to TIN Central System

Attention of all TIN Facilitation Centers (TIN-PCs) is invited to the procedure of acceptance of e-TDS/TCS correction statements and upload of scanned images as provided in chapter 6 and 7 of the TIN-PC Operating Manual (TOM).

As per approval from Income Tax Department, the procedure for acceptance of e-TDS/TCS correction statement stands revised. The same is intimated vide this circular. The revised procedure applicable with effect From June 1, 2014 is as per table below:

Sr. No.	Documents to be accepted along with e- TDS/TCS correction statements – Existing procedure	Documents to be accepted along with e­TDS/TCS correction statements –Revised procedure (From June 1, 2014)
1	Physical Form 27A	Physical Form 27A
2	Statement Statistics Report(SSR)
3	Copy of Provisional Receipt of Original Statement

In view of the above, TIN-PCs are required to accept e-TDS/TCS correction statements from Deductors/Collectors with .FVU file and duly signed Form 27A (generated from the latest File Validation Utility). The copy of Original Provisional Receipt and Statement Statistic Report need not be accepted from Deductor/Collector.

The verification of control total screen has to be carried out on the basis of information present on Form 27A.

Further, the revised procedure for upload of scanned images of e-TDS/TCS correction Statements, is as per the following table wherein e-TDS/TCS statements are accepted on or after June 1, 2014.

Documents accepted at the time of acceptance of e-TDS / TCS Statement	Documents to be returned to Deductor / Collector	Scanning of documents
CD/Pen Drive Form 27A	1. CD/ Pen Drive	1, Form 27A 2. Provisional receipt copy generated from SAM In case of multi-hatchcorrection statements, following documents to be scanned; Batch 1 Form 27A Provisional receipt copy generated from SAM Batch 2 Provisional receipt copy generated from SAM Batch 3 Provisional receipt copy generated From SAM

Note: For e-TDS/TCS statements accepted upto May 31, 2014, the scanned images of Form 27A and Provisional Receipt needs to be scanned and uploaded as referred vide circular number NSDL/T1N/2011/009 dated May 6, 2011.

The version of TOM after the above said updates is 5.10. The version control sheet is attached as Anneyure A

In case of any clarifications, contact TIN Support Desk on 022-24994201.

For and on behalf of NSDL e-Governance Infrastructure Limited

Bushan Maideo

Senior Vice President

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Deductees reported in TDS Statements with structurally Valid, but actually Invalid PANs.

Dear TAN Deductor,

Centralized Processing Cell (TDS) has observed from its records that you have reported deductees with invalid PANs in your quarterly TDS statements. These PANs appear structurally valid, however, they are actually invalid, as they are not available in the PAN Master records.

For example, ARUPS4625S appears to be a valid PAN according to the alphabets and numerals in its structure, however, this is an invalid PAN, as this is not available in PAN Master.

What is the impact :

The impact of such errors is significant in nature, in view of following :

• As per section 206AA, the tax is to be deducted at a higher rate, in case of reporting of invalid PANs. Therefore, Short Deduction is charged even if the tax has been deducted at the Section Rate, due to the applicability of section 206AA.
• The deductor will not be able to generate TDS Certificates for their deductees with invalid PANs.
• The taxpayer will not be able to avail correct TDS Credits

What actions to be taken :

The impact of such errors is significant in nature, in view of following :

• PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to Login to TRACES and  navigate to "Dashboard" to locate "PAN Verification" in the Quick Links menu.
• You can also use "Consolidated TAN - PAN File" that includes all the valid PANs attached with the respective TANs. To avail the facility, Login to TRACES and navigate to "Dashboard" to locate "Consolidated TAN - PAN File".
• To correct an invalid PAN reported earlier, a C5 Correction Statement is required to be filed.
• The PANs can also be corrected using our Online Correction facility with Digital Signatures. To avail the facility, you are requested to Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES.

You can reach out to us on ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

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IT Department Share Assets of Assessee Details as per Return of Wealth with Pubilc Sector Banks.

The income tax department has issued a press release regarding Sharing of asset details as per Return of Wealth with Public Sector Banks of loan defaulters on 28th May, 2014. The press release note is as under:

During a review meeting on the performance of Public Sector Banks (PSBs) taken by Finance Minister on 5.3.2014, the PSBs raised concern that the details of assets as available in the Wealth Tax Returns of loan defaulters are not being shared by Income Tax Department with the Banks despite repeated requests.

2. In this context, kind attention is drawn to Section 42B of the Wealth Tax Act 1957 which states that where a person makes an application to the Chief Commissioner or Commissioner in the prescribed form, seeking any information relating to any assessee in respect of any assessment made under this Act, the Chief Commissioner or Commissioner may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment 

3. In view of the fact that every Return of Wealth filed by the assessee is subject to assessment under section 16 of the Wealth Tax Act, the information contained therein qualifies for being supplied u/s 42B of the Wealth Tax Act, provided the CCWT/CWT is satisfied that supply of such information to PSBs is in public interest. CBDT in this context clarifies that information on assets of loan defaulters to enable recovery of loans by PSBs from such defaulters is in public interest.

4. It is further clarified that such information may be provided in respect of the borrower/mortgager/guarantor of the loan only. At the time of supply of such information a confidentiality clause may be included specifying that such information be used only for the purpose of recovery of loan and will not be shared with any other person/agency. An undertaking to this effect shall be obtained from the Bank (to be signed by an officer not below the rank of the Manager of the Branch concerned) before furnishing the information.

5. In order to ensure that the tax dues of the Department against the defaulter (if any) are safeguarded, an undertaking be obtained from the PSB to obtain a No Objection Certificate (NOC) from the jurisdictional CIT of the loan defaulter before appropriation of the surplus amount recovered from sale of immovable/movable asset of the defaulter, information in respect of which is shared, after adjustment of its loan dues.

6. The above guideline may be brought to the notice of all DGsIT, CCsIT and CsIT of your charge.

Download Recent Press Release Note

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No TDS from distribution of rental income earned by a society on behalf of its member.

No TDS from distribution of rental income earned by a society among its members.

Tax deducted at source (TDS) and Tax collection at source (TCS), as the very names imply aim at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” Its significance to the government lies in the fact that it prepones the collection of tax, ensures a regular source of revenue, provides for a greater reach and wider base for tax. At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment.

This are the most commonly credited accounts in profit & loss account of any Co-operative Housing Society. They are credited under different heads namely Maintenance charges Municipal Taxes, Electricity Charges, Lift Maintenances Charges, Water Charges, vehicle rents on behalf of its member owning those vehicles etc.

It may be emphasized that the society merely acts as an agent who collects this charges on behalf of members & spends the same to meet the various joint expenses of the society. Any surplus generated due to these types of income is not chargeable to tax as it is exempt based on the ‘concept of Mutuality’. The basic principle of Mutuality is a mutual association arises when persons forming a group; associate together for a common object and contribute money for achieving that object and divide the surplus amongst them in the character. The cardinal requirement in case of mutual association is that “All the contributors to the common fund must be entitled to participate in the surplus & all the participators to the surplus must be contributors to the common trade. In other words there should be complete identity between the contributors and the participators.

Where assessee co-operative society having collected jeep rentals on behalf of its members owning those jeeps, remitted said amount to members, it being a welfare activity and there was no element of work contract involved, assessee was not required to deduct tax at source while making remittance in question.

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All about Online TDS Return Correction & more without Digital Signature.

CPC (TDS) provides with 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.tdstaxindia.com

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Constitute SIT on Black monies stashed abroad by Union Cabinet.

Union Cabinet nods to constitution of SIT on black monies stashed abroad.  In this regard Union Cabinet issued a press released which is as under:

CONSTITUTION OF SPECIAL INVESTIGATING TEAM (SIT) TO IMPLEMENT DECISION OF SUPREME COURT ON LARGE AMOUNTS OF MONEY STASHED ABROAD

PRESS RELEASE, DATED 27-5-2014

The Union Cabinet today approved constitution of Special Investigating Team (SIT) to implement the decision of the Hon'ble Supreme Court on large amounts of money stashed abroad by evading taxes or generated through unlawful activities.

The SIT will be headed by Hon'ble Mr. Justice M.B. Shah, former Judge of the Supreme Court as Chairman and Hon'ble Mr. Justice Arijit Pasayat, former Judge as Vice Chairman.

The Members of the High Level Committee will comprise:

i. Secretary, Department of Revenue

ii. Deputy Governor, Reserve Bank of India,

iii. Director (IB),

iv. Director, Enforcement

v. Director, CBI

vi. Chairman, CBDT,

vii. Director General, Narcotics Control Bureau

viii. Director General, Revenue Intelligence

ix. Director, Financial Intelligence Unit

x. Director, Research and Analysis Wing and

xi. Joint Secretary (FT&IR-1), CBDT

The SIT has been charged with the responsibility and duties of investigation, initiation of proceedings and prosecution in cases of Hasan Ali and other matters involving unaccounted money. SIT shall have jurisdiction in the cases where investigations have already commenced or are pending or awaiting to be initiated or have been completed. SIT will prepare a comprehensive action plan including creation of necessary institutional structure that could enable the country to fight the battle against unaccounted money. The SIT should report to the court the status of work from time to time.

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Complete Procedure to Download TCS Certificates in Form 27D from TRACES

CPC(TDS) has provided a feature of downloading Form 27D, the Tax Collection Certificate for Deductees forming part of TCS Statements, filed in the form of 27EQ.

Refer to the following details for the above functionalities:

• Form 27D is Tax Collection Certificate in respect of deductees, reported in Form 27EQ Statements.

• Please refer to the provisions of Section 206C(5) of the Income Tax Act, 1962 :
• Every person collecting tax in accordance with the provisions of this section shall within [such period as may be prescribed from the time of debit] or receipt of the amount furnish to the buyer [or licensee or lessee] to whose account such amount is debited or from whom such payment is received, a certificate to the effect that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected and such other particulars as may be prescribed.

• Please note the following provisions of Rule 37D of Income Tax Rules, 1962:
• The certificate of collection of tax at source under sub-section (5) of section 206C to be furnished by the collector shall be in Form 27D.
• The certificate referred to in sub-rule (1) shall specify:-
• valid permanent account number (PAN) of the collectee;
• valid tax deduction and collection account number (TAN) of the collector;
• (1) book identification number or numbers where deposit of tax collected is without   production of challan in case of an office of the Government;
• (2) challan identification number or numbers in case of payment through bank;
• receipt number of the relevant quarterly statement of tax collected at source which is furnished in accordance with the provisions of rule 31AA.

• The certificate in the Form No. 27D referred to in sub-rule (1) shall be furnished to the collectee within fifteen days from the due date for furnishing the statement of tax collected at source specified under sub-rule (2) of rule 31AA.
• To download the certificates, you are requested to navigate to the “Downloads” menu.
• After completing details for FY and Quarter, KYC needs to be completed for submitting request for downloads.
• The report will be made available under “Requested Downloads” menu. Please note that the report will be made available in Zipped file format, which needs to be extracted using the PDF Generation utility for Form 27D.

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EPFO panel grants tax exemption to 20 private PF trusts.

An empowered committee of the retirement fund body EPFO has approved granting regular tax exemption to 20 private provident fund trusts, which would provide tax benefits for subscribers of these firms. 

The firms who got approval for tax exemption during the meeting of the panel held on May 15, include big names like Food Corporation of India, J K Tyre and Industries (Vikrant Tyre Plant), Mercedes Benz Research and Development, Aditya Birla Nuvo, L&T Technology services and L&T Hydrocarbon. 

The meeting of the panel is being called as outgoing Finance Minister P Chidambaram did not extend a March 31 deadline for the trusts to get regular tax exemption through the Employees' Provident Fund Organisation (EPFO). 

Chidambaram made it mandatory in 2006 for these trusts to procure an exemption certificate by March 31, 2007, a deadline that has been extended many times and expired on March 31. 

Earlier during the first meeting of the committee held on March 28, it had approved 68 such applications. 

The panel has been empowered by the EPFO's apex decision making body Central Board of Trustees (CBT), headed by the Labour Minister, to grant regular exemption on January 13 in its meeting. The power to grant exemption is vested in CBT. 

"EPFO is still processing 148 such applications for grant of regular tax exemption," EPFO's Central PF Commissioner K K Jalan who heads the panel, told PTI. 

Asked whether more such applications are expected, he replied, "We may receive such applications in future." 

Private PF trusts are formed by firms that manage the money and accounts of their workers themselves and have exemption from filing PF returns. The members of these trusts enjoy tax and other benefits at par with EPFO subscribers. 

Such trusts can start functioning after seeking ad hoc tax exemption from the regional commissioner after which they apply for regular tax exemption. 

Once approved, a PF trust's regular tax exemption is notified by the Labour Ministry or state government. 

According to a senior official, if the deadline for getting regular tax exemption is not extended in the full-fledged budget to be presented by the new government then the defaulting trusts would come under the income tax net. 

He expressed hope that the next meeting of panel may be called in the second week of next month where 30-40 such applications could be approved. 

At present, the EPF subscribers are exempted from paying income tax on deposits, accrual of interest and withdrawal of their funds. 

Source : www.economictimes.indiatimes.com

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Who enjoys exemption on pension amount.

There are however, different rules for different categories of people receiving different amounts of pension. Some of these are exempted from Income Tax, but most of them do not enjoy any exemptions. The provisions of the TDS as stated in Section 192 are application to the pension as it is viewed as an income.

Pension is nothing but a regular stipend given to an ex-employee in recognition of the service he has put in. The pension amount is fixed in advance by the employee and the employer. The pension amount received by a retired employee in India is treated as an income and so the norms of taxation are applied. There are however, different rules for different categories of people receiving different amounts of pension. Some of these are exempted from Income Tax, but most of them do not enjoy any exemptions. The provisions of the TDS as stated in Section 192 are application to the pension as it is viewed as an income.

Categories of pensioners: 

While the majority of the population falls under the general category and their pension is taxed, there are some categories that enjoy tax exemption on the pension amount they receive.

These people include:

1. An employee of the UN – A person who has worked for the UN is eligible for tax exemption. In the case of death of the employee, the family members will be entitled to receive the tax-free pension amount.

2. Armed forces – Under section 10(19), the pension received by an armed forces employee or the family will be tax-free.

3. High Court and Supreme Court judges – Retired High Court and Supreme Court judges receive a tax exempted commuted pension amount as long as the value is less than half of their total pension under Section 10(10A)(ii).

4. General public – Government and non-government employees, who do not fall in the above mentioned categories, do not enjoy any tax deductions in the pension they receive. Their pension is seen as an extension of their income and the taxes apply. This continues till the person lives and receives pension. In the case of his/her death, the nominee continues to receive the pension amount after the taxes are deducted.

Tax benefit in premiums paid for pension plans

If you buy an insurance policy to provide for your retirement days (also known as pension plans), you will get a tax discount on the premiums you pay. You can avail tax benefits of up to Rs 10,000 under Section 80CCC.

Tax benefit on maturity amount received Under Section 10 (10A), 1/3rd of the maturity benefit received from a pension plan is tax-free. The pension amount that is received thereafter, however, is taxable.

So as we can see, the pension received in the hands of the annuitant is not tax-free, unless the person falls in a special category. Whether you get your retirement benefit from your employer in the form of pension or from your insurance policy, the monthly amount you receive will be taxed. So keep this in mind while calculating your expenses. However, as there is a substantial tax benefit on the premium you pay for your retirement plan, it makes it a very good savings option. Not only do you end up saving tax, you also build up a corpus for your retirement years.

Sournce : www.moneycontrol.com

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Calculate Income Tax as per Slab for Asstt. Year 2015-16

Finance Minister of Indian Government Mr. P. Chidambaram had placed union budget recently we all well known.  Finance Minister cut Indirect Taxes on Cars, Two Wheelers, Commercial Vehicles and Mobile Phones reduced by 4% i.e. from 12% to 8% in an effort to revive growth. Similarly Factory gate tax also reduced by 2% i.e. from 12% to 10% on some Capital Goods, Consumer Durables things. Finance Minister recommends excise duty reductions on larger vehicles as well as restructure of factory gate tax on Home Made Mobile handsets etc. Tax concessions could be offered for some of the poorer regions in the country. But no major changes in Tax Rates. The following Tax Rates is applicable for Fin. Year 2014-15 and Assessment Year 2015-16 as per union budget placed by Finance Minister for Fin. Year 2014-15:

I(A) - In case of every individual other than the individual referred to in I(B),I(C) and I(D) or in the case of HUF (Resident as well as Non-resident):

Total Income	Rates of Income Tax
Where the total income does not exceed Rs. 2,00,000	NIL
Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 exceed Rs. 2,00,000	10% of the amount by which the total income
Where the total income exceeds Rs.5,00,000 but does not exceed Rs. 10,00,000	Rs. 30,000 plus 20% of the amount by which the total income exceeds Rs. 5,00,000
Where the total income exceeds Rs. 10, 00,000	Rs. 130,000 plus 30% of the amount by which the total income exceeds Rs. 10,00,000

I(B) - In case of every individual, being a woman resident in India and below the age of 60 years at any time during the previous year:

Total Income	Rates of Income Tax
Where the total income does not exceed Rs. 2,00,000	NIL
Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 exceed Rs. 2,00,000	10% of the amount by which the total income
Where the total income exceeds Rs.5,00,000 but does not exceed Rs. 10,00,000	Rs. 30,000 plus 20% of the amount by which the total income exceeds Rs. 5,00,000
Where the total income exceeds Rs. 10, 00,000	Rs. 130,000 plus 30% of the amount by which the total income exceeds Rs. 10,00,000

I(C) - In case of every individual, being a resident in India who is the age of 60 years or more but less than 80 years at any time during the previous year :

Total Income	Rates of Income Tax
Where the total income does not exceed Rs. 2,50,000	NIL
Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 exceed Rs. 2,50,000	10% of the amount by which the total income
Where the total income exceeds Rs.5,00,000 but does not exceed Rs. 10,00,000	Rs. 25,000 plus 20% of the amount by which the total income exceeds Rs. 5,00,000
Where the total income exceeds Rs. 10, 00,000	Rs. 125,000 plus 30% of the amount by which the total income exceeds Rs. 10,00,000

I(D) - In case of every individual, being a resident in India who is the age of 80 years or more at any time during the previous year :

Total Income	Rates of Income Tax
Where the total income does not exceed Rs. 5,00,000	NIL
Where the total income exceeds Rs.5,00,000 but does not exceed Rs. 10,00,000	20% of the amount by which the total income exceeds Rs. 5,00,000
Where the total income exceeds Rs. 10, 00,000	Rs. 100,000 plus 30% of the amount by which the total income exceeds Rs. 10,00,000

POINTS TO BE NOTED: 

• Education Cess is 3% in case of an Individual or HUF. 
• There is no surcharge in case of an Individual or HUF, having income upto Rs. 1 crore but after this surcharge will be 10% of the tax payable.

Note: There shall be a credit of ` 2000 or tax payable whichever is less for individual tax payer for having income upto Rs. 5 Lacs. 

II. In case of Association of Person (AOP)/Body of Individual (BOI)/Artificial Juridical Person :

Total Income	Rates of Income Tax
Where the total income does not exceed Rs. 2,00,000	NIL
Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 exceed Rs. 2,00,000	10% of the amount by which the total income
Where the total income exceeds Rs.5,00,000 but does not exceed Rs. 10,00,000	Rs. 30,000 plus 20% of the amount by which the total income exceeds Rs. 5,00,000
Where the total income exceeds Rs. 10, 00,000	Rs. 130,000 plus 30% of the amount by which the total income exceeds Rs. 10,00,000

POINTS TO BE NOTED: 

• Education Cess is 3% in case of an AOP or BOI. 
• There is no surcharge in case of an AOP or BOI, having income upto ` 1 crore but after this surcharge will be 10% of the tax payable. 

III. In case of a Co-Operative Society:

Total Income	Rates of Income Tax
Where the total income does not exceed Rs. 10,000	10% of the total Income
Where the total income exceeds Rs.10,000 but does not exceed Rs. 20,000	Rs. 1000 plus 20% of the amount by which the total income exceeds Rs. 10,000
Where the total income exceeds Rs. 20,000	Rs. 3,000 plus 30% of the amount by which the total income exceeds Rs. 20,000

POINTS TO BE NOTED: 

• Education Cess is 3% in case of a Co-Operative Society. 
• There is no surcharge in case of a Co-Operative Society, having income upto ` 1 crore but after this surcharge will be 10% of the tax payable. 

IV. In case of Local Authority 

• Income-tax: 30% of total income. 
• Surcharge: 10% of the tax payable if the income exceeds Rs. 1 crore. 
• Education Cess: 3% of Income-tax. 

V. In case of a Firm (Including LLP’s) 

• Income-tax: 30% of total income. 
• Surcharge: 10% of the tax payable if the income exceeds Rs. 1 crore. 
• Education Cess: 3% of Income-tax. 

VI. In case of a Domestic Company 

• Income-tax: 30% of total income. 
• Surcharge: The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 5% of such income tax, provided that the total income exceeds Rs. 1 crore. This rate of surcharge will be increased to 10% of the tax payable if the income exceeds Rs. 10 crores. 
• Education Cess: 3% of the total of Income-tax and Surcharge. 

VI. In case of a Foreign Company 

• Income-tax: 40% of total income. 
• Surcharge: The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 2% of such income tax, provided that the total income exceeds Rs. 1 crore. This rate of surcharge will be increased to 5% of the tax payable if the income exceeds Rs. 10 crores. 
• Education Cess: 3% of the total of Income-tax and Surcharge. 

Marginal Relief: 

In case of a domestic company and foreign company, where the total income exceeds Rs. 1 crore, then the aggregate of income tax and surcharge shall be restricted to: 

(Tax on Rs. 1 crore) + (Total Income - Rs. 1 crore) 

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Resident assessee can claim losses incurred from house property located abroad in return filed in India

IT/ILT: An option is available to the resident-assessee to file return of income either under the Indian tax laws or under the treaty - If assessee files the return of global income in India, the Revenue is bound to give effect to such return - Therefore, losses from house property located abroad was to be included in the income of resident-assessee

Facts:

• The assessee filed his return of income after including losses from house property located abroad. He purchased this property in Australia which was already on rent. He obtained a loan from ANZ Bank, Australia ('ANZ') to purchase the property.
• The loss was computed under the head house property due to payment of interest to ANZ.
• During appellate proceedings, the CIT(A) referred to the decision of Apex Court in case of CIT v. PVAL Kulandagan Chettiar [2004] 137 Taxman 460 (SC) and held that as far as rent income from Australia was concerned, the assessee was required to file the return in Australia and such income could not be included in Indian income. Therefore, negative income could not be assessed in India.

The Tribunal held in favour of assessee as under:

1. In view of Section 5 of the Income-tax Act ('the Act') in case of a resident, income accruing or arising outside India had to be assessed in India. The Sec 90(2) of the Act clearly provides that wherever DTAA is applicable to assessee he has an option to apply either Indian Tax Laws or provisions of DTAA, whichever are more beneficial to him.
2. Therefore, the assessee had an option to file return of income under the Indian tax laws where DTAA was applicable.
3. In the instant case, the assessee had exercised the option of filing return under Indian laws, thus, the same could not have been refused simply because DTAA was applicable.
4. The decision in case of PVAL Kulandagan Chettiar (supra) was distinguishable because in that case the assessee was a resident of India and Malaysia. It was due to financial connection of the assessee with Malaysian property it was held that income from Malaysian rubber plantation was taxable only in Malaysia.
5. The assessee had right to file the return of global income in India and the Revenue was bound to give effect to such return. The CIT(A) was not correct in holding that income from house property in Australia was not assessable in India. Accordingly, the order of the CIT(A) was to be set aside and the Assessing officer was to be directed to include the loss from such house property in the hands of the assessee.

Source: www.taxmann.com

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Updated TDS/TCS Rates for Asstt. Year 2015-16

Dear Friends, Little changes in TDS and TCS rates for financial year 2014-15 by the Income Tax Department and interest provision for late deposit of TDS/TCS also placed.  The TDS rates applicable in case of Non submission of PAN, on service tax or not, on job work or not, which rate is applicable to individual, HUF etc. Who should deduct TDS ? Who should not deduct TDS ?

Deduction of TDS/TCS by correct rate is very important for TAX Deductor and Collector.  On late filing of TDS/TCS Return penalty deposit and Dis-allowance of Expenses. Tax deduction rates chart (TDS rate chart)  for Financial year 2014-15 is as below:

TDS Rate Chart For Fin. Year  2013-14

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