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Latest RPU Ver. 4.0 replaced with FVU 4.3 and 2.139 Ver. w.e.f. 28.06.2014

The Income Tax Department(NSDL-TIN) has released New FVU Ver. 4.3 for TDS/TCS Return Preparation Utility and new File Validation Utilities w.e.f. 28.06.2014 for quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards with additional features which is as below:

Additional Key feature of FVU version 4.3 & FVU version 2.139 :

  • Add of New State i.e. “TELANGANA”.
  • New State code is “36”.

Applicability of FVU Ver. 4.3 version:

  • From June 28, 2014, FVU version 4.3 would be mandatory for statements pertain to FY 2010-11 onwards.

Applicability of FVU Ver. 2.139 version:

  • From June 28, 2014, FVU version 2.139 would be mandatory for statements pertain to FY 2007-08 to FY 2009-10.

To view Other Key Features of Ver. 4.3 (Click Here)

To view Other Key Features of Ver. 2.139 (Click Here)



New ITR-1 (Sahaj) in Excel and ITR-5 with Java Utility released by IT for Asstt. Year 2014-15.

Now, it is a time to file Annual Income Tax Return for Asstt. Year 2014-15 by e-filing or paper return.  If taxpayee may delay to file Income Tax Return,  may face the consequences arising on behalf of them  as per Income Tax Law binding for Asstt. Year 2014-15. 

Income Tax Department has started the Annual Income Tax Return by e-filing process for the assessment year 2014-15.  In this regard Income Tax Department has releasing the two Income Tax Return Utilities (java based & Excel) i.e. ITR-1 (Sahaj) in Excel Utility and New ITR-5 in Java. Further assessee can prepare return offline and upload return on filing portal.

For Individuals having Income from Salary/Pension and Family Pension, Income from Interest, Income from One House Property (excluding loss brought forward from previous years) / Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)]
This form CANNOT BE USED by an individual if income for Assessment 2014-15 being -

ITR 1 (Sahaj) :
Who can use this form ?
This Return Form is to be used by an Individual whose Total Income for the assessment year 2014-15 includes :-
  • Income from Salary/Pension; or
  • Income from One House Property (excluding cases where loss is brought forward from previous years); or
  • Income from Other Sources (excluding winning from Lottery and Income from Race Horses)
Who cannot use this form ?
This Return Form should not be used by an Individual whose Total Income for the assessment year 2014-15 includes:-
  • Income from more than one House Property; or
  • Income from winning from Lottery or income from winning from Race Horses; or
  • Income under the head "Capital Gains", e.g., short term capital gains or long term capital gains from the sale of house, plot, shares etc.; or
  • Income from agriculture/exempt income in excess of Rs. 5,000; or
  • Income from Business or Profession ;or
  • Loss under the head 'Income from other sources'; or
  • Person claiming relief of foreign tax paid under section 90 and/or 91;or
  • Any resident having an asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
New ITR-1 (Sahaj) in Excel Formate (Click Here)

DOWNLOAD ITR-1 (SAHAJ) & ITR-5 BY IT

Forms
Description
Utility
ITR-1 (Sugam)
For Individuals having Income from Salary & Interest
Excel
ITR 5
For firms, AOPs,BOIs and LLP
Java


TDS Calculation Software (Salaried Employee) & Tax Slab for Asstt. Year 2015-16.

As per Budget placed by FM of Previous Indian Goverment Mr. P.Chidambaram with no major changes in Tax Rates for Asstt. Year 2015-16.  On this basis All Salaried Employee can deduct Income Tax for Fin. Year 2014-15 as TDS. But there is dispute that How much TDS Deduct monthly from the Salary.  Therefore, we developed TDS TAX Calculation Software for Salaried Employee for Asstt. Year 2015-16.

Current Tax Rate as per Previous Government Budget is as follows for Assessment Year 2015-16:

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)


TDS CALCULATION SOFTWARE FOR ALL SALARIED EMPLOYEE

Steps for  Installation
  • Download the Form-16 or Challan Utility
  • Extract the Taxprochallan.zip file into a physical path.
  • Double click on the Taxprochallan.exe from the extracted path.
Minimum Systems Requirements:
  • Pentium or better.
  • 15MB disk space.
  • 32MB RAM.
  • Windows 95, 9X, ME, XP, NT, 2K.
Physical Requirements:

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

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

  • It maintain Each Employee Data.
  • It Calculate Gross Income as per current D.A. Rates automatically as per Government D.A. Rates.
  • It Provides Facility to Enter Data Manually along with all Arrears etc.
  • It Calculate Tax Liability.
  • It Display Month-wise Salary Statement for Asstt. Year 2013-14.
  • It Generate TDS Certificate (Form 16) Automatically with Annexure "B".

INCOME TAX CALCULATOR - FREE DOWNLOAD

No TDS to be deducted if commission paid to foreign agents.

No TDS to be deducted if commission paid to foreign agents for rendering services abroad

Article authored by Mr. Alok Patnia, founder of Taxmantra.com

ITAT Chennai Bench recently held that assessee is not liable to deduct tax at source for making payment to its foreign agents for rendering services abroad, if the foreign agent does not have a permanent establishment in India and the service rendered is not in the nature of technical service.

Facts of the case:

The assessee, a private limited company, manufactures and exports leather garments and incurred expenditure towards commission paid to non-residents for the purpose of procuring orders abroad. The A.O disallowed the same, by observing that section 9 of the Act applied in this case as the commission amount had accrued to a non-resident/ payee principally on account of a business activity in India which required TDS deduction. The Assessing Officer further held that the certificate under section 195(2) of the Act had also not been produced. Accordingly, he disallowed/added the commission amount in assessee’s income.

The Appellate Tribunal held that:
The Revenue’s only grievance is that the aforesaid foreign agency commission paid by the assessee to the non residents/payee attracts disallowance under section 40 (a)(i) for non deduction of TDS. It is made clear that in support of this plea, no cogent evidence has been produced. It transpires from the case file the assessee has paid foreign exchange commission to its non-resident agent who do not have any permanent establishment in India. There is no material to prove that these payment have arisen out of an agreement executed in India. Nor there is any evidence to conclude that the non-resident/payee has rendered any technical service to the assessee. The Revenue also fails to prove the payments to have been accrued, arisen or paid in India so as to make it taxable under provision of the Act.

Taking into consideration all these circumstances, CIT(A) held that the assessee was not liable to deduct TDS on above stated commission paid to its non-resident payees.

Source: www.blog.tdsman.com

e-Filing of Wealth Tax Return mandatory except Individual and HUF not liable for Tax Audit - Amendment Rules, 2014

Income Tax Department has amended Wealth Tax Rule with Return Form i.e. "Form-BB" for Wealth Tax Return vide notification Dated 23rd June, 2014, which is mandatory to file except Individual and HUF those who are not liable for Tax Audit. Income Tax Department has been made some major changes regarding e-filing of wealth tax return as under.
  • Latest wealth tax return "Form-BB" (Amended & Notified) shall be applicable from Asstt. Year 2014-15.
  • e-filing of wealth tax return is mandatory for all type of persons for assessment year 2014-15 onwards except Individual and HUF not liable for Tax Audit.
  • Individual / HUF to whom provision of section 44AB (tax audit) is not applicable in assessment year 2014-15 may file wealth tax return on paper form.
  • Exemption to Individual / HUF is granted (as per sr no -3 above) only for AY 2014-15.so from next year (AY 2015-16) all person are required to e file wealth tax return with digital signature.
  • e-filing is to be done with digital signature.
  • Nothing is to be attached with wealth tax return like statement of computation of tax payable, valuation report of registered valuer, proof of tax or interest deposit.
  • e-filing process will be notified in due course.
  • Due date to file wealth tax return is same as of Income Tax return
Wealth tax 1st Amendment Rules, 2014

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

NOTIFICATION

WEALTH-TAX

New Delhi, the 23rd June, 2014

S.O.1576 (E) .. In exercise of the powers conferred by clause (ba) and clause (bb) of sub]section (2) of section 46 read with section 14A and section 14B of the Wealth-tax Act, 1957 (27 of 1957), the Central Board of Direct Taxes hereby makes the following rules further to amend the Wealth]tax Rules, 1957, namely:.
1. (1) These rules may be called the Wealth]tax (1st Amendment) Rules, 2014.
   (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Wealth]tax Rules, 1957 (hereinafter referred to as the gsaid rulesh),.
   (i) for rule 3, the following rule shall be substituted, namely:.
       3.Form of return of net wealth. .

       (1) The return of net wealth referred to in section 14 shall.
           (a) in respect of assessment year 2013]14 and earlier assessment years in the case of individuals, Hindu undivided families and companies, be in Form BA and shall be verified in the manner specified therein.
           (b) in respect of the assessment year 2014]15 and any other subsequent assessment year in the case of individuals, Hindu undivided families and companies be in Form BB and shall be verified in the manner specified therein.

       (2) Subject to the provisions of sub]rule (3), for the assessment year 2014]15 and any other subsequent assessment year, the return of net wealth referred to in sub]rule (1) shall be furnished electronically under digital signature.
       (3) In case of individual or Hindu undivided family to whom the provisions of section 44AB of the Income-tax Act, 1961(43 of 1961) are not applicable, the return of net wealth referred to in sub]rule (1) may be furnished for assessment year 2014]15 in a paper form.
       (4) The return of net wealth required to be furnished in Form BB shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax and interest paid, or any document or copy of any account or form of report of valuation by registered valuer required to be attached with the return of net wealth under any provisions of the Act.
       (5) The Director General of Income]tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in the manners specified in sub-rule (2).

3. In the said rules, in Appendix, after Form BA, the following Form shall be inserted; namely :

Updated Forms
Descriptions
Utility
FORM -BB
RETURN OF NET
WEALTH
[See rule 3(1)(b) of Wealth tax Rules, 1957]

Note:‐ 1. OPR : All properties other than (i) assets referred to in section 2(ea) and liable for wealth tax; (ii) assets claimed as exempt under section 5; (iii) assets excluded under section 6; or (iv) assets being part of business or profession which is subject to audit under section 44AB of the Income‐tax Act, 1961(43 of 1961).”

[Notification No.32/2014, F.No.143/1/2014‐TPL]
(J. Saravanan)
Under Secretary, TPL

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub‐section (ii) vide Notification number S.O. 3384(E), dated the 18th October, 1957 and last amended by Wealth‐tax (Second Amendment) Rules, vide Notification S.O. Number 470 (E) dated the 13th February 2009. .

Updated ITR-1 (Sugam), ITR-2, ITR-3, ITR-4 & ITR-4S (Sahaj) with Excel & Java Utility for Asstt. Year 2014-15.

Income Tax Department has updated an Annual Income Tax Return Forms i.e. ITR-1 (Sugam), ITR-2, ITR-3, ITR-4 and ITR-4S (Sahaj) with Java and Excel Utility for Asstt. Year 2014-15.  Earlier ITR-1, ITR-2, ITR-3, ITR-4 and ITR-4S are also released in java based utility. Taxpayee can download any or both format of utilities of ITR-2 for the assessment year 2014-15.

Who can use this form ?
This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2014-15 includes :-
  • Income from Salary / Pension; or
  • Income from House Property; or
  • Income from Capital Gains; or
  • Income from Other Sources (including Winning from Lottery and Income from Race Horses).Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.
Who cannot use this form ?
This Return Form should not be used by an Individual or a Hindu Undivided Family whose Total Income for assessment year 2014-15 includes Income from Business or Profession.

DOWNLOAD EXCEL OR/AND JAVA UTILITY

Updated Forms
Descriptions
Utility
ITR-1 (Sugam)
For Individuals having Income from Salary & Interest

ITR-2
For Individuals having Income from Salary & Interest.
ITR 2 For Individuals & HUFs not having Income from Business or Profession


ITR-3
For Individuals/HUFs being partners in firms and not carrying out
business or profession under any proprietorship
ITR-4
For Individuals & HUFs having income from a proprietory business or
profession
ITR-4S (Sahaj)
For Individuals/HUF having income from presumptive business

Important announcement for Tax payers for updating contact details in e-Filing Portal.

Dear Tax Payers,

Income-Tax Department uses the registered contact details (Mobile number & E-mail ID) for all communications related to e-Filing. It is mandatory that all tax payers must have a valid contact details registered in e-Filing portal. 

It is noticed that many registered users are not having authenticated contact details in e-Filing or may have provided details of other persons for convenience. This prevents the Department from interacting directly with taxpayers on their personal email and Mobile.

Further, it has been observed that in many cases taxpayers are not able to reset their password since the email communication from the Department may be sent to their registered email or Mobile which may be different from the taxpayer’s personal email or mobile. 

Hence, it is requested that all the e-Filing users may immediately update and authenticate their correct contact details so that the communication can be sent to the valid Mobile number and E-mail ID.

The process of updating and authenticating the contact details has been given below:
New User:
Provide the correct Mobile Number and Email ID during the Registration in the e-Filing portal, Activation link would be sent to the registered E-mail ID and a One Time Password (OTP also called PIN) is sent to the registered Mobile Number. User needs to Click on the Link provided in the E-mail and enter the OTP received in the mobile number for Successful activation of the registered user in e-Filing portal.

Registered User:
After the user logs in to the e-filing account, there will be a pop-up requesting the user to update the current Mobile number and E-mail ID. The user should update their personal Mobile number and Email so that the updated contact particulars are registered with the Department or confirm that the Mobile number and email ID already registered is their valid personal contacts.

Upon submitting the details, Department would immediately send OTPs (PIN1 & PIN2) to new mobile number and Email ID. The respective PINs- PIN1 and PIN2 received through Mobile number and E-mail ID should be entered by them in the respective input fields to authenticate that the email ID and mobile are correct. Upon successful validation the Mobile number and email ID would be updated in the taxpayer’s profile and the process would be complete.

The PIN1 and PIN2 would be valid only for the session – so taxpayers are advised not to close the webpage till PINs are entered and validated. In case of any difficulty or delay, the taxpayer can log in again and follow the same process to update the current contact details.

Note: Taxpayers are advised to follow the process mentioned above in the interest of the security of their e-filing account and to directly receive communication from the Department about status of processing and issue of refunds etc. This is a one-time process to validate the mobile number and email ID. However, whenever the taxpayer changes the Mobile Number or email ID in their Profile, the process will be repeated to ensure that the particulars provided are correct. One mobile number or email ID can be used for a maximum of 4 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members (not exceeding 4 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department. The taxpayer can enter any other person’s email or mobile number in addition as a Secondary Contact (without any restriction on the number of user accounts linked as a Secondary Contact). Using “Profile Settings -> My Profile” the taxpayer can select to include the Secondary Contact to also receive emails, alerts etc. Include the emails and SMS from the Income tax Department in the ‘safe list’ or ‘white list’ to prevent the communications from the Department from being blocked or rejected or sent to Spam folder. As a best practice, please update and authenticate the current contact and address details under “Profile Settings -> My Profile” after login to eFiling portal.

Mandatory One Mobile Number or One Email ID for ITR e-filing Login Account.

Income-Tax Department has issued a Press Release regarding contact details (Mobile number & E-mail ID) for Taxpayee on e-Filing Login Account. It is mandatory that all tax payers must have a valid contact details i.e. one mobile number or one email address registered in e-Filing portal. The Press Released is as under:

Press release
Dated 19.06.14

One mobile number or email ID can be used for a maximum of 4 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members (not exceeding 4 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department. Considering the very low availability of Internet Facility in India especially in villages and smaller cities the move is the one which is not appreciated by tax professionals. Some of the professionals has also demanded that Limit of 4 registrations against a mobile number/email registration must be removed immediately. One more practical difficulty may be in registration of Non-Residents, who do not have mobile facility in India. It is knot known, if they can register with foreign mobile number. One of our reader Mr. Vijay K. Malik said that ” It is not possible for ordinary person like chai walla, paan walla, small shop keepers to have their personal email id. This type of procedural hurdle will create more trouble for tax consultants, they have to create email id for their clients on their names, which seems to be more illegal to crate this type of email id. Income Tax Department has to think from this angle also. “ CA V Swaminathan commented that ” The newly announced procedure for bringing on IT Record the particulars for communication to taxpayers is prima facie cumbersome and spells additional hassle. Further,more importantly, it does not seem to talk about updating of physical ‘address’. As suggested before,in consideration of ‘balance of convenience’ , by having suitable changes made in the department’s computerized system itself, the said address may be updated on the basis of the address/changed address as filled in / reported, in the tax return lastly filed and on its record.” In our opinion government move is with good intentions but been made without considering the ground realities, which needs a reconsideration. 

Compete solutions to Late Payment and Late Deduction of TDS/TCS.

What should I do in case of Late Payment / Late Deduction intimation received?
The default amount will have to be deposited through challan no 281 by ticking minor head ’400′. Download conso file from TRACES for filing correction and update the challan detail. While filing correction, fill up interest amount in column no. 403 in Form 26Q, column no. 304 in Form 24Q, column no. 705 in Form 27Q and column no. 655 in Form 27EQ. Mention default interest amount in second last interest column in challan detail of conso file. (Refer e-tutorial - https://www.tdscpc.gov.in/en/download-nsdl-conso-file-etutorial.html).

Note: In case of paper return, interest amount should be mentioned in annexure.

What is the procedure of calculating interest on Late Payment?
Deposit late payment interest @ 1.5% per month or part of the month from the date of deduction till date of deposit.

Procedure for calculating Late Payment:





Calculation

No. of months in Defaults = 3 i.e., Mar-12 to May-12

4000*1.5%*3(Months) =180.00

What is the procedure of calculating interest on Late Deduction?
You have to deposit late deduction interest @ 1% per month or part of the month from the date of payment / credit to deductee till date of deduction.

Procedure for calculating Late Deduction:





Correct Calculation

No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012

10000*1%*1(Months) =100.00

While filing a correction statement I quoted Late Deduction Interest amount in ‘Other’ column. How can I rectify?
Deductor can file a correction statement, delete the amount from ‘Other’ column and mention interest amount in interest column no. 403 in Form 26Q, column no. 304 in Form 24Q, column no. 705 in Form 27Q and column no. 655 in Form 27EQ. You also need to mention demand amount of interest in second last column of interest in challan details.

Source: www.blog.tdsman.com

Reasons to reject the correction in challan detail by TDS-CPC

Rejection reasons pertaining to challan details are as follows:

Challan detail record on which correction has been filed does not exist in regular / previous statement

  • In a correction statement, verification keys from challan data should match with the corresponding fields in regular statement
  • Verification keys for Non Nil Statement – Last transfer voucher number, Last Bank-Branch Code / Form 24G Receipt Number, Last date of transfer voucher / bank Challan, Last deposit amount as per challan
  • Verification keys for Nil challan – Last date of transfer voucher number / bank challan, last total deposit amount as per challan

If an unmatched challan is being corrected, then the sum of deposit amount of all the active deductee rows in the regular and correction statement and corrected values of claimed TDS interest and claimed TDS Others amount should be less than or equal to Total deposit amount of challan given in statement

If a matched challan is being corrected, then available balance amount in the challan should be sufficient for consumption of updated sum of deposit amount of all the active deductee rows in correction and corrected values of claimed TDS interest and claimed TDS Others amount

In case of existing matched / partially matched challan, deductor can only update Cheque / DD Number, claimed TDS Interest amount, claimed TDS Others amount and Section code

If deductor updates only deductee details, then claimed TDS Interest amount and claimed TDS Others amount as given in the challan should match with the corresponding values present in regular / previous return.

Sournce: www.blog.tdsman.com

Mr Jaitley's Budget imperatives.

The first Budget of the new government is eagerly awaited by stock market punters and corporate managers who have been greatly enthused by the electoral outcome. Middle-class income earners will also expect some sign of fiscal benevolence. However, Prime Minister Narendra Modi's recent speech, warning of tough measures, is a good corrective to the expectation of a Budget bonanza. What are the more specific signals that Arun Jaitley's first Budget should convey and what are the temptations that he needs to avoid?

First, he must avoid the temptation to please middle-class supporters with some big giveaway in the income tax. The Bharatiya Janata Party (BJP) has won the election and does not need to do this now. Save the giveaways for some later pre-election year.

There has been talk of raising the income tax exemption limit to as much as Rs 5 lakh and the 80C exemption limit to Rs 1.5 lakh. There is no justification for such a largesse. If one looks at the income tax exemption limit and the level at which the peak income tax rate applies, the increases since 2004 have been way higher than what the inflation numbers could justify. Between 2004-05 and 2013-14, the exemption limit rose fourfold and the peak rate level rose sixfold while the consumer price index rose twofold. An increase in the exemption limit may not cost much in immediate revenue loss, but the reduction in the numbers in the tax net would go against the long-term fiscal goal of widening the tax base.

The 80C exemption is an expensive concession; its actual impact on the level of personal savings is questionable and, therefore, needs to be studied carefully. In fact, the finance minister should signal his intention to examine the impact and the cost-benefit ratio of all of the exemptions in direct taxes, which, according to Budget documents, implied a loss of Rs 1.13 lakh crore against the direct tax collection of Rs 5.64 lakh crore in the Budget estimates for 2012-13. Expenditures or revenue loss of this order of magnitude call for a justification that goes beyond casual empiricism and requires a more rigorous with-and-without analysis of impact on the target variable. Another matter that requires attention is the regressive nature of the present arrangements for dividend taxation.

The finance minister must signal a serious intention to contain fiscal profligacy by announcing a three-year set of targets for the tax-to-GDP, expenditure-to-GDP and the deficit-to-GDP ratios based on a realistic assessment of the pressures arising from the need to restore defence preparedness, improved policing and the forthcoming Pay Commission award. The best signal of a serious intention to control the deficit would be measures to cap open-ended subsidies and tax sops. He must also give a clear timeline for the introduction of the goods and services tax (GST) and the direct taxes code (DTC).

The Budget will have to show a beginning towards the goals that the president mentioned in his address in Parliament about "Swachha Bharat" by 2019 and a pucca home with electricity, piped water and sanitation for all by 2022. Hopefully, this will be done without compromising on the need to contain the deficit.

A Budget to put the fisc back on a sustainable track is not one for radical proposals. But the finance minister can signal his commitment to equity by starting a debate on the role of an inheritance tax in reducing inherited inequalities and encouraging philanthropy.

The signal that is eagerly awaited is what the finance minister will do to restart stalled projects and the investment growth engine. His government has promised us job-oriented growth and that too needs a budgetary signal. One is reluctant to suggest tax concessions in the present fiscal environment, but some tweaking of regulatory provisions to expedite clearances, encourage venture funding, agro-processing and marketing, and skill development would be welcome. A liberalised system of bank loans to youngsters for skill training or higher education would go down well with the youth who want opportunities, not doles.

A major theme of the vision laid out by the prime minister is co-operative federalism. The Budget must include some bold steps in this direction. At present, responsibilities for Centre-state finance are split between the finance ministry, the Planning Commission, sectoral ministries with large centrally sponsored programmes and the Reserve Bank of India. These could be consolidated in a division or a department for federal finance in the finance ministry, which would provide a single-stop contact for state finance officials on all Centre-state transfers and market borrowing programmes. He may also indicate the government's intention to rationalise centrally sponsored schemes and set up a National Development Council (NDC) committee for this.

The finance minister is also the minister for corporate affairs, and in both capacities he must convey the message that crony capitalism is out and his government is market-friendly rather than business-friendly. The difference arises because being market-friendly involves doing things like enforcing disclosure norms, prosecuting wrongdoers, opening up entry options and promoting competition, which corporate owners and managers may not like. Ensuring competition involves more than the Competition Act and the Competition Commission. Many other policy areas affect the state of competition. For instance, fiscal and trade policies may be discriminatory and favour some, and discretionary allotments of natural resource rights may be distorted by favouritism - or worse. A draft of a national competition policy is ready, one understands. The finance minister must announce the acceptance and release of this in his Budget speech and establish arrangements to subject all policies to the test of fair and open competition. Nowhere is this more important than in the process the government intends to follow in the allocation of rights to publicly controlled resources.

The election of this government with a decisive mandate has generated a huge sense of hope not just in the corporate board rooms, which have been waiting for this for some time, but in millions of youngsters, who expect new opportunities to open up for them. They are not looking for doles and handouts, but for a chance to acquire a skill, educate themselves, get a decent job or to start some enterprise of their own. The finance minister has the difficult job of responding to this spirit of hope and yet getting the country back on a more sustainable fiscal path. Good luck to him!