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Tax Exemption Limit, Income Tax Calculation Method with TDS Calculator for A.Y. 2015-16

After Union Budget 2014-15, many website published free tax calculation utility but, here simple and easy method to calculate Income Tax for Fin. Year 2014-15 i.s. Asstt. Year 2015-16 for specially Salaried Employee with Monthwise Salary Statement.  This utility calculates Annual Income Tax Liability and suggest to deduct TDS from August-2014. This Budget is great benefit for middle class Taxpayee (Salaried Employee) by extension of income tax exemption limit i.e. from Rs 2 lakh to Rs 2.50 lakh.

Updated Income Tax Exemption Limit for Asstt. Year 2015-16, Click Here.

Method to calculate your Income Tax for Asstt. Year 2015-16 with all exemption limits i.e. 80C, Deduction under Chapter -VIA and many more, Click Here.

Latest TDS amendments effected from 01.10.2014 & TDS Rate for Asstt. Year 2015-16.

Penalties and prosecution, Click Here

TDS / TAX CALCULATION UTILITY


Download Latest TDS / TAX Calculation Utility for
Asstt. Year 2015-16

Extend Last Date of DVAT 1st Quarter Online Return Filing for Fin.Year 2014-15 to 08.08.2014

The Government of National Capital Territory of Delhi, Department of Trade and Taxes has been issued a circular No. 4 of 2014-15 dated 28.07.2014 regarding extension of last date of filing of online/hard copy of 1st Quarter return for Fin. Year 2014-15 by 08.08.2014.  The extension of Date circular for DVAT is as under:

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
DEPARTMENT OF TRADE AND TAXES
(POLICY BRANCH)
VYAPAR BHAWAN, I.P.ESTATE, NEW DELHI-110 002

No.F.7(420)/VAT/Policy/2011/PF/212-218 Dated: 28/07/2014

CIRCULAR NO. 4 of 2014-15

Sub: Filing of online return for 1st quarter of 2014-15 – extension of period thereof.

In exercise of the powers conferred under Rule 49A of the Delhi Value Added Tax Rules,2005, I, Sanjeev Khirwar, Commissioner, Value Added Tax, do hereby extend the last date of filing of online/hard copy of first quarter return for the year 2014-15, in Form DVAT-16, DVAT-17 and DVAT-48 along with required annexures/enclosures to 08/08/2014:

However, the tax due shall continue to be paid in the usual manner as per the provisions of section 3(4) of the Delhi Value Added Tax Act, 2004.

The dealers filing the returns through digital signature need not be required to file hard copy of the return/Form DVAT-56.

(Sanjeev Khirwar)
Commissioner,Value Added Tax
No.F.7(420)/VAT/Policy/2011/PF/212-218 Dated: 28/07/2014

Copy forwarded for information and necessary action to:
  1. All Spl./Addl./Joint Commissioners, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan I.P.Estate, New Delhi-02.
  2. Dy. Director (Policy), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P.Estate, New Delhi-02.
  3. Programmer (EDP), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P.Estate, New Delhi-02 for uploading the circular on the website of the department. 
  4. The President/General Secretary, Sales Tax Bar Association (Regd.), Vyapar Bhawan, I.P.Estate, New Delhi.
  5. All Assistant Commissioners/AVATOs Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P.Estate, New Delhi-02.
  6. PS to the Commissioner, VAT Department of Trade and Taxes, GNCT of Delhi Vyapar Bhawan, I.P.Estate, New Delhi-02.
  7. Guard File.
(Rajesh Bhatia)
Assistant Commissioner (Policy)

Form 26AS, PAN Ledger, Tax Credit Statement & Annual Income Tax Return.

Income Tax Department facilitates a PAN holder to view its Tax Credit Statement (Form 26AS) online.  Tax Credit Statement (Form 26AS) is generated when valid PAN is reported in the TDS statements. Form 26AS can be viewed / accessed in three ways you know all very well.  Apart from this, how much important of Form 26AS Statement to file Annual Income Tax Return, know more.

Form 26AS contains:

  • Details of tax deducted on behalf of the taxpayer by deductors - Part A & A1 of Form 26AS
  • Details of tax collected on behalf of the taxpayer by collectors - Part B of Form 26AS
  • Advance Tax / Self-Assessment Tax / Regular Assessment Tax, etc. deposited by the taxpayers (PAN holders) - Part C of Form 26AS
  • Details of paid refund received during the financial year - Part D of Form 26AS
  • Details of high value transactions in respect of shares, mutual funds, etc. - Part E of Form 26AS

Taxpayee also can View (Form 26AS) From Income Tax e-Filing Website - https://incometaxindiaefiling.gov.in

Tax Payers registered on the e-filing portal can login and view Form 26AS by clicking on ‘View Form 26AS (Tax Credit)’ under ‘My Account’ or ‘Quick Link’. The facility is available free of cost.

To register as new user, click on ‘Register Yourself’ on the portal. The registration process is user-friendly and takes minimal time.

But, how to view Tax Credit Statment (Form 26AS) without register any PAN or TAN, Click Here

Apart from these all above, What are the three methods to view Form 26AS

The TDS (Tax) Deductor is bounded to issue TDS Certificate as well as deposit Deducted TDS (Tax) into Central Government Treasury through Bank by appropriate Challan. Secondly TDS Deductor is also mandatory to file TDs Return in respect to deduct TDS by fining of Return Quarterly within Due Date.

Therefore, we suggest to taxpayee submit annual income tax return within time and get full tax credit return with interest.

For this the Income Tax Department has developed and provide free download facility to submit Income Tax Return with Java and Excel utility for Asstt. Year 2014-15 i.e. i.e. ITR-1 (Sugam), ITR-2, ITR-3, ITR-4 and ITR-4S (Sahaj).

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

Major Amendments in New Form No. 3CD (Tax Audit Report Format)

The CBDT has notified Income-tax (7th amendment) Rules, 2014 which substitutes the existing Form No. 3CD with a new form. The new Form 3CD prescribes certain new reporting clauses and substitutes some existing clauses with new ones. The new form requires tax auditor to furnish more and detailed information in the new form for tax audit report.
Unlike old form 3CD which required auditor to report only those inadmissible payments which were debited to Profit and loss account, the new Form 3CD requires reporting of all disallowable payments even if they are not debited to profit and loss account.
With the substitution of Form No. 3CD, reporting in the new form would be a time taking job for the Chartered Accountants. Here is the list of additional reporting requirements as prescribed in the new Form No. 3CD:
(1)   Registration number in case of indirect tax liability:

  Assessees liable to pay indirect taxes (like excise duty, service tax, sales tax, customs duty, etc.) shall furnish their registration number or any other identification number allotted to them[clause 4 of Part A].
(2)   Relevant clauses of section 44AB:

  The relevant clauses of section 44AB shall be reported under which audit has been conducted[clause 8 of Part A].
(3)   Location at which books of account are kept:

  New Form seeks details of the address at which books of account of assessee have been kept[clause 11(b) of Part B].
(4)   Nature of documents examined by the auditor:

  The auditor is required to specify the nature of documents examined by him in the course of tax audit[clause 11(c) of Part B].
(5)   Change in method of accounting/stock valuation:

  A tabular format is specified for reporting of financial impact of changes in method of accounting and method of stock valuation[clause 13 and clause 14 of Part B].
(6)   Transfer of land/building for less than stamp duty value:

  Details of land or building transferred by assessee for less than stamp duty value (under section 43CA or under section 50C) shall be reported in new Form 3CD [clause 17 of Part B].
(7)   Deduction allowable under Sections 32AC/35AD/35CCC/35D:

  Deductions allowable under sections 32AC, 35AD, 35CCC and 35DDD are also required to be reported in revised Form No. 3CD[clause 19 of Part B].
(8)   Disallowances:

  Old Form3CD required reporting of inadmissible payments only when they were debited to Profit and loss account. However, the new Form 3CD requires reporting of following disallowable payments, even if they are not debited to profit and loss account[clause 21 of Part B]:
(i)   Disallowance for TDS default under Section 40(a)
(ii)   Disallowance for cash payments under section 40A(3)
(iii)   Disallowance for provision for gratuity under section 40A(7)
(iv)   Disallowance under Section 40A(9)
(v)   Particulars of any liability of a contingent nature
(vi)   Amount of deduction inadmissible under section 14A
(vii)   Interest inadmissible under the proviso to section 36(1)(iii)
(9)   Deemed income under Section 32AC:

  Section 32AC of the Act provides for investment allowance of 15% for investment in plant and machinery. New form provides for reporting of deemed income which results from sale or transfer of new asset, (if asset was acquired and installed by the assessee for the purpose of claiming deductions under Section 32AC) within a period of five years from the date of its installation[clause 24 of Part B].
(10)   Receipt of unlisted shares:

  A new clause is inserted in the Form 3CD which requires reporting of all unlisted shares which were received by assessee either for inadequate consideration or without consideration in view of section 56(2)(viia)[clause 28 of Part B].
(11)   Issue of shares above fair market value:

  A new clause is inserted in the Form 3CD which requires reporting of all transactions of issue of shares where consideration received by assessee exceeds its fair market value in view of section 56(2)(viib)[clause 29 of Part B].
(12)   Speculation losses:

  New Form No. 3CD provides for reporting of losses from speculation business as referred to in Section 73[clause 32(c) of Part B].
(13)   Losses from business specified under section 35AD:

  Assessee shall furnish details of losses incurred as referred to in Section 73A in respect of specified businesses mentioned in Section 35AD[clause 32(d) of Part B].
(14)   Reporting of deductions claimed under Sections 10A and 10AA:

  If any deduction has been claimed by assessee under Sections 10A and 10AA then it shall be reported in new Form No. 3CD[clause 33 of Part B].
(15)   Compliance with TCS provisions:

  Old Form 3CD required reporting on compliance with TDS provisions only. However, New Form No. 3CD requires reporting on compliance with TCS provisions as well[clause 34(a) of Part B].
(16)   Filing of TDS/TCS statements:

  The tax auditor shall report on the compliance by the assessee with the provision of furnishing of TDS or TCS statement within prescribed time[clause 34(b) of Part B].
(17)   Assessee-in-default:

  If assessee is deemed as an assessee-in-default and he is liable to pay interest under Section 201(1A) or 206C(7), the tax auditor shall furnish the TAN of assessee, interest payable and interest actually paid[clause 34(c) of Part B].
(18)   Dividend Distribution Tax:

  Revised Form No. 3CD requires reporting of following reductions as referred to in clause (i) and clause (ii) of Section 115-O(1A)[clause 36 of Part B]:
i)   Dividend received by domestic company from its subsidiary, and
ii)   The amount of dividend paid to any person for or on behalf of the New Pension System Trust referred to in Section 10(44).
(19)   Audits:
(i)   Cost audit: Old Form No. 3CD required reporting only when statutory cost audit was carried out under Section 233A of the Companies Act, 1956. However, the revised Form No. 3CD specifies reporting requirement even when cost audit has been carried out voluntarily. The requirement of attachment of copy of cost audit report along with Form has been substituted with reporting of qualifications in cost audit report[clause 37 of Part B].
(ii)   Cost Audit under Central Excise Act: The requirement of attachment of copy of cost audit report along with Form has been substituted with reporting of qualifications in cost audit report [clause 38 of Part B].
(iii)   Special Audit under Service Tax: If any service-tax audit is carried out in relation to valuation of taxable services, the tax auditor shall report any qualifications made in relation to valuation of taxable services[clause 39 of Part B].
(20)   Ratios:

  Unlike old form which required reporting of certain ratios pertaining to current year only, the new Form requires reporting of ratios of preceding financial year as well. Further, total turnover is to be reported for the previous year as well as for preceding financial year[clause 40 of Part B].
(21)   Demand raised or refund issued:

  The new Form seeks details of demand raised or refund issued under any tax laws (other than Income Tax Act, 1961 and Wealth Tax Act, 1957) along with details of relevant proceedings[clause 41 of Part B].

 Source: www.taxmann.com

Clarification on taxation of "Alternate Investment Funds" by CBDT.

The CBDT has been issued a Circular No. 13/2014 dated 28th July, 2014 regarding clarification on taxation of "Alternate Investment Funds" having status of non-charitable trust under the Income-Tax Act, 1961.

The SEBI (Alternative Investment Funds) Regulations, 2012 ("AIF Regulations") vide Regulation No. 4 issued in May 2012 aims at regulating all forms of private pool of Funds in India.  The said Regulations divide the Alternative Investment Funds ("AIFs") into three board categories - Category-I, Category-II and Category-III Alternative Investment Funds, depending upon the operational strategies, objectives and fund structure.  A large number of AIFs registered with SEBI have been set up in the form of non-charitable trusts.

2.    While the AIFs, being Venture Capital Funds, making investment in the Venture Capital Undertakings have been accorded "Tax Pass Through" status under section 10(23FB) read with section 115U of the Income Tax Act, 1961 ("Act") (whereby income arising in the hands of such Fund would be treated as Tax-Exempt, while investors of such funds would become liable to tax liability on as if the investors have made the investments directly in the Venture Capital Undertaking), clarification has been sought about tax-treatment in case of AIFs being on-charitable trusts where the investors name and beneficial interest are not explicitly known on the date of its creation - such information becoming available only when the funds starts accepting contributions from the investors.

3.    Board has been requested to clarify whether the income of such funds would be taxable in the hands of the Trustees of the AIF in the capacity of "Representative Assessee" (as defined u/s. 160(i)(iv) of the Act) or in the hands of investors (i.e. contributors of funds).

4.    The matter has been examined.  In the situation where the trust deed either does not name the investors or does not specify their beneficial interests, provisions of sub-section (1) of section 164 would come into play and the entire income of the Fund shall become liable to be taxed at the Maximum Marginal Rate of Income-Tax in the hands of the trustees of such AIFs in their capacity as "Representative Assessee".  It is also clarified that in such cases, provisions of section 166 of the Act need not be invoked in the hands of the investor, as corresponding income has already been taxed in the hands of the "Representative Assessee" in accordance with sub-section (1) of section 164 of the Act.

5.    However, in cases of funds where names of the beneficiaries and their interests in the Fund are determined i.e. started in the trust need, the tax on whole of the income of the fund-consisting of or including profits and gains of business, would be liveable upon the Trustees of such AIF, being "Representative Assessee" at the Maximum Marginal Rate in accordance with sub-section (1A) of section 161 of the Act.

6.    The clarification given above shall not be operative in the area falling in the jurisdiction of a High Court which has taken or takes a contrary discussion on the issue.

Download Circular 13/2014, dated 28.07.2014 from here.

Late Filing of Income Tax Return causes Penalty for Asstt. Year 2014-15

All the Tax Return Filers i.e. Tax Consultant, Business Men and special Salaried Employee (Taxpayer) who are filed non-audit and non-corporate Assessee's Income Tax Return by due date i.e. 31st July, 2014 for Asstt. Year 2014-15. The details about Late filing and due date of Income Tax Return are as under:

Due date of filing of income tax return for Assessment Year 2014-15 :
  • The due-date for filing of returns for non-audit & non-corporate assessee’s is 31st July of the assessment year 2014-15.
  • In case of an assessee, being a partner of a firm liable to audit u/s. 44AB, the applicable due-date shall be 30th September of the assessment year (The said limits are as per the provisions of section 139(1) of the Act).
  • In the case of an assessee liable to submit a report u/s. 92E (Transfer Pricing Report) of the Act, the applicable due-date is 30th November of the assessment year.
Income Heads covered under due date 31st July, 2014
  • Salary, Pension,
  • Income from other source like interest income,
  • Income from capital gain, 
  • Income from house property and 
  • Income from person owning small business and not liable to get their accounts audited are covered.
Major Effects of Non Filing of Income Tax Return by Due Date for Fin.Year 2013-14, Asstt. Year 2014-15 ?
  • Losses can not be carry forward.
  • Interest u/s. 234A will be charges @ 1% PM applicable.
  • Income Tax Return e-Filing is Mandatory, if Annual Taxable Income is not less than 5 Lakhs.
  • Income Tax Return can not be revised at any cost if filied not in time.
What happen next when Taxpayee not file Income Tax Return in Due Date ?
  • There is no any penalty on late filing of Income Tax Return.
What says Income Tax section 271F regarding late filing of Return ?
If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees
so this section says end of relevant assessment year, for previous year 2013-14, assessment year is 2014-15 and it will ends on 31.03.2015 ,means there is no penalty for late filing of income tax return up to 31.03.2015 and after that assessing officer(AO) can impose a penalty of Rs. 5000, and that is also his (AO) power which he may or may not exercise after giving due hearing to the assessee.

Download New Income Tax Return Forms For Assessment Year 2014-15 

Latest Forms 3CA, 3CB, 3CD (Audit Report format) notified by CBDT w.e.f. 25.07.2014

The CBDT has revised Forms 3CA, 3CB, 3CD (Audit Report format) u/s. 44AB of Income Tax Act, 1961 vide Notification No. 33/2014 dated 25.07.2014.  The new updated format is applicable w.e.f. 25.07.2014.  The notification regarding revises Form Form 3CA, 3CB and 3CD is as under:

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

New Delhi, the 25th July, 2014

NOTIFICATION

INCOME-TAX

S.O. 1902 (E) In exercise of the powers conferred by section 295 read with section 44AB of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—
1. (1) These rules may be called the Income-tax ( 7th Amendment) Rules, 2014.
    (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in Appendix-II, for Form No. 3CA, Form No. 3CB and Form No. 3CD, the following forms shall be substituted, namely:-

Revised Form No. 3CA (MS Word Format)
Revised Form No. 3CB (MS Word Format)
Revised Form No. 3CD (MS Word Format)


[F.No.133/1/2014-TPL]
(J Saravanan)
Under Secretary (TPL)

Download ITR-4 Excel Utility for File Annual Income Tax Return for Asstt. Year 2014-15.

Now a Eleventh hour time to file Annual Income Tax Return for Asstt. Year 2014-15.  Regarding this many website has published Excel Base and other Utility which are provides you all facility.  Apart from this, Income Tax Department has developed Excel Base Utility for Taxpayers.  In this context the Income Tax Department has published ITR-4 Excel Utility for Asstt. Year 2014-15 including java based utility. Taxpayee can download one of them or both format to file Income Tax Return for the assessment year 2014-15.

ITR 4 :
This Return Form is to be used by an individual or a Hindu Undivided Family for the assessment year 2013-14 who is carrying out a proprietary business or profession.

Instruction to file ITR-4, How ?


Download ItR-4 Excel Utility (Click Here)

Know more about your Tax Return Form (Click Here)

Other Important ITR Forms in Excel & Java Utility Download

Changes made by Finance (No. 2) Bill, 2014 as passed by the Lok Sabha

Changes made by Finance (No. 2) Bill, 2014 as passed by the Lok Sabha
1. Unlisted securities and units of MF transferred between 1-4-2014 and 10-7-2014 shall be deemed to be long-term capital assets, if held for more than 12 months:
It is proposed that unlisted shares and units of a mutual fund (other than Equity oriented mutual fund) shall be categorized as long-term capital assets only if they are held for more than 36 months. The existing provision requires holding them for a period of more than 12 months so as to categorize them as long-term capital assets.
So, only a security listed on stock exchange as well as units of equity oriented fund held by an assessee for more than twelve months shall be considered as 'long-term capital assets'.
The Finance Bill, 2014 as passed by the Lok Sabha has inserted a new proviso in section 2(42A) to provide that the unlisted shares and units of a Mutual Fund shall continue to be deemed to be long-term capital assets if they have been transferred during the period from April 1, 2014 to July 10, 2014 after holding them for a period of more than 12 months (instead of more than 36 months). This proviso shall be inserted w.e.f. April 1, 2015.
2. LTCG on Mutual Fund Units transferred between 1-4-2014 and 10-7-2014 shall be taxable at 10% without indexation:
Long-term Capital Gains on mutual funds (other than equity oriented mutual funds) are proposed to be taxed at the rate of 20%. Accordingly, option to pay tax at the rate of 10% (without indexation) would not be available in case of long-term capital gain arising from sale of such units.
However, the Finance Bill, 2014 as passed by the Lok Sabha provides that the benefit of the proviso shall continue to be available for the long-term capital assets, being units of Mutual Funds, transferred between April 1, 2014 and July 10, 2014. Thus, the assessee shall have an option to pay tax at lower of following rates if units of Mutual Funds are transferred between the said periods:
a.   At 10% of capital gains as computed after reducing the cost of acquisition without indexation
b.   At 20% of capital gains as computed after reducing the indexed cost of acquisition
The Finance Bill, 2014 provided that the amendments to section 112 will take effect from Financial Year 2014-15. This raised doubts among investors regarding the retrospective effect of the provision to tax the units of Mutual Funds (other than equity oriented mutual funds) redeemed during period April 1, 2014 to July 10, 2014. Thus, a proviso has been inserted for the transitional period to allow benefits of concessional tax rates during the aforesaid period.
3. Determination of Arm's Length Price when more than one price is determined by most appropriate method:
Under the existing TP regulations, where more than one price is determined by most appropriate method, the arithmetic mean of all such prices is taken for determination of arm's length price with a tolerable range of +/- 3% or +/- 1%, as the case may be.
The application of this methodology has been one of the reasons for TP litigations among taxpayers and revenue. Thus, to address this issue, Finance Minister in his budget speech proposed use of range for determination of arm's length price, where adequate number of comparables are available in the benchmarking set. However, the Finance Bill as presented in the House on July 10, 2014 did not include any clause to address this issue.
Accordingly, the Finance Bill as approved by Lok Sabha has inserted a third proviso in section 92C to provide that where more than one price is determined by the most appropriate method, the arm's length price in relation to an international transaction or specified domestic transaction shall be computed in such manner as may be prescribed.With introduction of the new mechanism the provisions of first and second proviso (arithmetic mean and tolerable range) shall not apply. This proviso shall be inserted w.e.f. April 1, 2015.
4. Taxpayers can approach Settlement Commission even for pending re-assessment cases:
As per section 245C of the Act, an assessee may apply to Settlement Commission for settlement of cases at any stage of a case relating to him. The term 'case' as per section 245A(b) shall mean any proceeding for assessment which may be pending before an Assessing Officer on the date on which application is made before Settlement Commission.
Before June 1, 2007 an assessee was allowed to apply for settlement of cases even when the proceedings for re-assessment were pending before the Assessing Officer. Subsequently, Finance Act, 2007 restricted the scope of the provisions by providing that an assessee shall not be allowed to make the application before the Commission during the pendency of reassessment proceedings or during pendency of proceedings of making fresh assessment where original assessment was set aside.
Finance Act, 2007 inserted a proviso for the purpose of section 245A(b) to provide that proceedings for reassessment or fresh assessment where original assessment was set aside shall not be deemed to a proceeding pending before the Assessing Officer. Consequently, a taxpayer was not able to file an application for settlement of cases in cases where reassessment was pending before the Assessing Officer. Effectively, the scope of the term 'case' for which an application could be made was curtailed by the Finance Act, 2007.
The Finance Minister during his budget speech has proposed to enlarge the scope of the Income-tax Settlement Commission so that taxpayers could approach the Commission for settlement of disputes. Accordingly, the Finance Bill, 2014 as passed by Lok Sabha has deleted the proviso which restricted the scope of the term 'case' to the pending assessment cases only. Such amendment would reinstate the existing position wherein an assessee can apply for settlement of even those cases which are pending for re-assessment proceedings. The changes in the provisions shall take effect from October 1, 2014.
Similar changes have been made in Wealth-tax Act as well for settlement of cases.
5. Resident taxpayers can approach Authority for Advance Ruling:
As per the existing provisions of section 245N(a), the term 'Advance Ruling' shall mean:
(a)   A determination of any question of law or fact arising out of a transaction which has been undertaken or is proposed to be undertaken by a non-resident applicant;
(b)   A determination of any question of law or fact by the Authority in relation to tax liability of a non-resident arising out of a transaction which has been undertaken or is proposed to be undertaken by a resident applicant with such non-resident;
(c)   A determination or decision by the Authority in respect of an issue relating to computation of total income which is pending before any income-tax authority or the Appellate Tribunal and such determination or decision;
(d)   A determination or decision by the Authority, whether or not an arrangement, which is proposed to be undertaken by any person, being a resident or a non-resident, is an impermissible avoidance arrangement as referred to in Chapter X-A (GAAR) or not (applicable from 1-4-2015).
Currently, an advance ruling can be obtained for determining the tax liability of a non-resident. This facility is not available to resident taxpayers, except Public Sector Undertakings. Thus, the Finance Minister proposed, in his budget speech to extend the scope of advance ruling so as to enable resident taxpayers to obtain an advance ruling in respect of their income-tax liability above a defined threshold.
Accordingly, section 245N(a) is amended to provided that the term 'Advance Ruling' shall mean a determination by the authority in relation to the tax liability of a resident applicant arising out of a transaction undertaken or proposed to be undertaken by him. Further, the meaning of the applicant has been amended so that the Central Government may notify the class of resident persons for the purpose of obtaining the advance ruling.
6. Changes aiming at strengthening Authority for Advance Rulings ('AAR')
The Finance Minister, Sh. Arun Jaitley, in his budget speech had said that additional benches of AAR would be constituted for strengthening the AAR. Thus, following amendments have been made to the Finance Bill as approved by the Lok Sabha under section 245-O in order to strengthen the AAR:
a.   Increase the strength of members of AAR: The existing provision provides that the AAR would only consist of three members, namely, a Chairman, an officer of Indian Revenue Service and an officer of Indian Legal Service. The amendment provides for additional appointment of Vice-Chairmen as member of AAR. Further, Central Government has been empowered to appoint such number of Vice-Chairmen, revenue members and law members as it deems fit.
b.   Eligibility criteria for appointment of members of AAR:
(i)   Chairman: As per the existing provision a person who is a retired judge of the Supreme Court can be appointed as Chairman. The Finance Bill, 2014 as passed by the Lok Sabha provides that only a person who has been a judge of the Supreme Court would be eligible for appointment as Chairman.
(ii)   Vice-Chairman: It is provided in the Finance Bill, 2014 as passed by the Lok Sabha that a person, who has been a Judge of a High Court, can be appointed as a Vice-Chairman.
(iii)   Member of IRS: The existing provision provides that an officer of IRS who is qualified to be a member of CBDT is eligible for appointment as member of AAR. The new provision provides that a revenue member from IRS, who is a Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General of Income-tax is eligible for appointment as member of AAR.
(iv)   Member of Indian Legal Service: The existing provision provides that an officer of Indian legal service, who is or is qualified to be an additional Secretary to the Government of India, is eligible for appointment as member of AAR. The new provision provides that a law member from IRS, who is an Additional Secretary to the Government of India, is eligible for appointment as member of AAR.
(v)   Additional benches of AAR: The existing provision does not provide for constitution of benches of AAR at various locations. It merely provides that office of AAR shall be located in Delhi. The amended provisions provides as under:
  The office of AAR shall be located in Delhi and its benches shall be located at such places as Central Government may specify.
  Further, benches of AAR have been given authority to exercise power and functions of AAR and it has been further provided that such benches would consist of Chairman or the Vice-Chairman and one revenue member and one law member.

Source: www.taxmann.com

Download ITR-6 e-Filing JAVA Utility for Asstt. Year 2014-15.

The CBDT has released ITR-6 Java Base utility for Companies other than a company.  This utility required for online filing of Income Tax Return of companies other than a company claiming exemption u/s. 11 for Assessment year 2014-15 i.e. Financial Year 2013-14. The CBDT has Yesterday released only Java Utility it means CBDT shall  releases ITR-6 Excel Utility soon.

Who filed ITR-6 ?
  • For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes)
  • This return has to be filed electronically only.
Annexure-less Return Form – No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return. Tax-payers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS).

ITR-6 has to be compulsorily furnished electronically under digital signature to the Income Tax Department.

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No New Notice for Retrospective Tax, FM said.

NEW DELHI: Finance minister Arun Jaitley called the retrospective tax a 'retrograde idea' that sent a very negative signal to the world of investors and as a result investments dried up.

Replying to the budget debate in Rajya Sabha late on Thursday night he said the government will not create any fresh controversies on retrospective tax.

He said the government recognised the Parliament's sovereign right to legislate retrospectively, but said "as a policy our government won't use that power".

He also assured the house that assessing officer will not issue new notices that they could have issued after the retrospective amendment. These cases will be referred to a mechanism created under the Central Board of Direct Taxes (CBDT).

In respect of cases that are under dispute, finance minister said there were two options, either by legislation those cases are decided against the government or litigations are contested.

"We consulted various people and finally found that the second course was a more prudent course. Legislation is a methodology of solving dispute so is legal methodology a course of solving dispute. We have left it to that," Jaitley said.

He said there were some early signs that the growth was picking up, but these were only very early signs. Similarly, inflation was showing some early signs of easing and if it eased sufficiently the Reserve Bank of India could cut rates.

Finance minister also strongly took on the charge that the government was pro business.

If you say that I have helped the businesses and this budget is pro business, yes it is. I have no hesitation in saying it is pro business, Jaitley said.

"Does it help the middle class? Does it help the neo middle class? It does. Does it help the poor? It does," FM said adding that being pro business did not mean being anti poor.

You need to be pro industry, it is only then that you will have revenues so that you are able to service the poor, FM said.

Source: www.economictimes.indiatimes.com

IT Offices remain open on 26, 27, 28, 30 & 31 to accept Income Tax Return for Asstt. Year 2014-15

Income Tax Department has issued an order u/s. 119(1) of the Income Tax Act, 1961 regarding filing of Income Tax Annual Return for Asstt. 2014-15.  By this order it came to know that IT offices remain open on  26th July and 27th July, 2014 to accept the return of Income as normal office hours though it is Saturday and Sunday respectively.

This direction has been issued by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961. Special arrangements have also been made by way of opening additional receipt counters, wherever required, on 26th, 27th, 28th, 30th and 31st July, 2014 in order to facilitate the taxpayers in filing their returns of income conveniently and in a timely manner. The due date for filing of return of income within the meaning of Explanation 2(c) to Section 139(1) of the Income Tax Act, 1961 is 31st July, 2014.

Download Order regarding to accept the Income Tax Return for Asstt. Year 2014-15.

Special Return Receipt Counters
The Chairman, CBDT shall inaugurate the Special Return Receipt Counters tomorrow at 10.30 AM at Pratyaksh Kar Bhavan, B-Block, ground Floor, Civic Centre, Minto Road, New Delhi-2. Extensive arrangements have been made by the Department to facilitate the taxpayers in filing their income tax returns.

Income Tax Exemption Limit for Deductions u/s. 80CCC of Contribution to Pension Fund.

DEDUCTION IN RESPECT OF CONTRIBUTION TO PENSION FUND

Section 80CCC has been inserted with effect from the AY 1997-98. This section provides a deduction to an assessee (individual) for any amount paid or deposited by him in any annuity plan of LIC of India or any other insurer for receiving pension from a fund referred to in section 10(23AAB). The deduction shall be restricted to Rs. 1,00,000/-.

The following points should be remembered:-
Where after claiming the deduction, the assessee or his nominee surrenders the annuity before the maturity date of such annuity, the surrender value shall be taxable in the hands of the assessee or his/her nominee, as the case may be, in the year of receipt.

If deduction is claimed u/s 80CCC, pension received will be taxable in the hands of the assessee or the nominee, as the case may be in the year of receipt.

Rebate (with reference to the amount paid u/s 80CCC) will not be available u/s 88 to persons to whome deduction under this section has been allowed.

The maximum amount deductible u/s 80CCC is Rs. 1,00,000/-. Moreover, the aggregate amount of deduction :-
  • u/s 80C, 80CCC , 80CCD(1) and 80CCD(2) should not exceed Rs.  1,00,000/-(for Asstt. Year  2006-07to 2011-12).
  • u/s 80C, 80CCC and 80CCD(1) cannot exceed Rs.  1,00,000/-(from Asstt. Year 2012-13).
Note:-
  1. Section 80CCD(1) – Contribution by an employee (or any other individual) towards notified pension scheme.
  2. Section 80CCD(2) – Employer’s contribution towards notified pension scheme.