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CBDT issued notice to taxpayers who have not filed ITR for Asstt. Year 2014-15

CBDT has noticed that 5,09,898 taxpayers who have submitted an e-return for AY 2011-12 or 2012-13 or AY 2013-14 (Upto 20th October 2014) with returned Income of More than 10 Lakh or paid self assessment tax of more than / equal to one lakh (as per ITR)  have not filed ITR for AY 2014-15.

In this regard, Joint Director of Income tax Systems has issued a letter dated 29.10.2014. The board has desired that CCsIT should personally monitor these cases.

The issued Notice is as under:


Government submits list of foreign bank account holders in Supreme Court

On October 29, 2014 the Central Government has submitted a list of Indians who have got foreign banks accounts in a sealed cover to the Supreme Court. Since 2009, based on a petition filed by senior lawyer, Ram Jethmalani, the Supreme Court has been monitoring the investigations into black money. However, the Supreme Court subsequently questioned the Government why they were providing a protective umbrella to foreign bank account holders and asked the Government to disclose the information of all accounts holders for further probe.

In this regard, the Government named eight people in the top court who are being prosecuted for allegedly hiding undeclared cash in Swiss and other banks.

Both, the previous government and the new BJP government have argued in Court that tax treaties with other countries prohibited the disclosure of names till charges were framed. Critics have accused the Government of using tax treaties as an excuse to shield rich and powerful citizens. India has double tax avoidance treaties with over 80 countries.

Sournce: www.taxmann.com

Download All Audit reports utility for Asstt. Year 2014-15

There are various types of audit report utility on internet, out of them some are payable and a few are free, apart from this, the Income Tax Department has been provided free Java Base applicable utility to taxpayers.  The all audit report details as under :

1. Audit report under section 44AB of the Income-tax Act,1961 in a case where the accounts of the business or profession of a person have been audited under any other law.

2. Audit report under section 44AB of the Income-tax Act,1961, in the case of a person referred to in clause (b) of sub-rule (1) of rule 6G.

3. Report from an accountant to be furnished under section 92E relating to international transaction(s).

4. Report under Section 115JB of the Income-tax Act, 1961 for computing the book profits of the company.

5. Audit report under section 142(2A) of the Income-tax Act, 1961.

6. Audit report under section 12A(b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions.

7. Audit report under section 10(23C) of the Income-tax Act, 1961, in the case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub- clause (v) or sub-clause (vi) or sub-clause (via) of section 10(23C).

Instructions
  • Attachments cannot exceed 50MB.
  • Attachments must be in pdf or zip format.
  • Attachments should be scanned with minimum 300dpi.
  • Wherever there is a requirement in the Form to submit a signed copy of documents by an Assesse/CA as an attachment, upload the scanned copy of the same documents.
Checklist of documents and pre-requisites
  • A copy of last year's tax return
  • Bank Statement
  • TDS certificates
  • Savings certificates/Deductions
  • Interest statement showing interest paid to you throughout the year.
  • Balance Sheet, P&L Account Statement and other Audit Reports wherever applicable.
Download Audit Report Forms (Other than ITR) Utility
Particulars
Form No.
Facility
Audit report under section 44AB of the Income-tax Act,1961 in a case where the accounts of the business or profession of a person have been audited under any other law
3CA-3CD
Audit report under section 44AB of the Income-tax Act,1961, in the case of a person referred to in clause (b) of sub-rule (1) of rule 6G
3CB-3CD
Report from an accountant to be furnished under section 92E relating to international transaction(s)
3CEB
Report under Section 115JB of the Income-tax Act, 1961 for computing the book profits of the company
29B
Audit report under section 142(2A) of the Income-tax Act, 1961
6B
Audit report under section 12A(b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions
10B
Audit report under section 10(23C) of the Income-tax Act, 1961, in the case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub- clause (v) or sub-clause (vi) or sub-clause (via) of section 10(23C).
10BB



Framing of Scrutiny Assessment in cases of estimation of Income who not maintaining books.

CBDT has issued a notification to seeks formation of committee to resolve issue of estimation of income of fish farmers not maintaining books under Section 143 of The Income-Tax Act, 1961 subject to cited as farming of scrutiny assessments in cases of fish farmers involved in running inland fresh water fish tanks.

Representations have been received by the board from various quarters regarding difficulties being faced on account of surveys and income-tax scrutiny assessments by fish farmers, being involved in business and profession of running inland fresh water fish tanks specifically in cases where the books of accounts are not being maintained by the assessees concerned.

Continued ... (Click Here)

7th Pay Commission’s visit to Shimla, Himachal Pradesh on 12th & 13th Nov., 2014

Commission's visit to Shimla, Himachal Pradesh

The Commission, headed by its Chairman, Justice Shri A. K. Mathur, proposes to visit Shimla, Himachal Pradesh from 12th to 13th November, 2014. The Commission would like to invite various entities/associations/federations representing any/all categories of employees covered by the terms of reference of the Commission to present their views.

Your request for a meeting with the Commission may be sent through e-mail to the Secretary, 7th Central Pay Commission at secy-7cpc@nic.in. The memorandum already submitted by the requesting entity may also be sent as an attachment with this e-mail.

The last date for receiving request for meeting is 7th Nov. 2014 (1700 hours).

Download Conso File to rectify unmatched Challans in the TDS Return Statement.

An important message has been displayed for the deductors on the TRACES website regarding downloading of conso file.

The displayed message has been given below:

Attention Deductors: Your request for download of Conso File will not be accepted in case there are unmatched challans in the selected statement. Please match all challans through Online Correction before submitting request for Conso File.

This means that if there are any unmatched challans in the TDS statement filed by the deductor, the correction statement for that TDS statement cannot be filed for such regular statement for errors such as PAN Error, Short deduction due to incorrect reporting of certificates, interest and late fee payments etc. The correction statement will be filed only when all the challans in the statement are matched.

This may arise a question that how will the unmatched challans be matched in absence of download of conso files for correction of statements.

For this purpose, CPC (TDS) has provided an utility called Online Challan Correction through which any mismatch in challans in the statements filed by the deductors can be corrected through the online mechanism on the CPC (TDS) website itself.

Download e-Tutorial for Online Challan Correction.

Free Download Tax Calculation Utility and monthwise salary details for Asstt. Year 2015-16

Many Tax Calculation utility on Internet, apart from this accurate Tax Calculation utility for Salaried Employee can't provide these with monthly salary statement.  Now, calculate Proper TAX to deduct as TDS from monthly salary with Monthwise salary Statement.   This utility calculates Annual Income Tax Liability and suggest to deduct as TDS from salary. 

What are the Income Tax Exemption Limit for Asstt. Year 2015-16, Click Here.

Maximum exemption limits under chapter VIA to calculate  Income Tax for Asstt. Year 2015-16  Click Here.


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

What are the Penalties and prosecution, Click Here

Tax Calculation Method:


HRA exemption = Least of (40% (50% for metros) of Basic+DA or HRA or rent paid - 10% of Basic+DA)

Transport allowance is exempt up to Rs.800/- per month during the month. (Expenditure incurred for covering journey between office and residence.)  For people having permanent physical disability, the exemption is 1,600/- per month.

Reimbursement of Medical bills are exempt for self and dependent family, up to Rs.15,000/- per annum u/s(5) LTA is exempt to the tune of economy class Train/ Air /Recognised public Transport fare for the family to any destination in India, by the shortest route.

LTA can be claimed twice in a block of 4 calendar years. The current block is from 01.01.2010 to 31.12.2013. For claim, it is must to provide originals tickets etc.

U/s 24 There is an Exemption for interest on housing loan. (for Self occupied Residence). If the loan was taken before Apr 1, 1999 exemption is limited to Rs. 30,000/- per year. If the loan was taken after Apr 1, 1999 exemption is limited to Rs. 2,00,000/- per year if the house is self-occupied; There is no limit if the house is rented out.

This exemption is available on accrual basis, which means if interest has accrued, you can claim exemption, irrespective of whether you've paid it or not..                            "

If you have rented out your house, enter the total income / loss from the house (after deducting property tax and standard maintenance expenses).

U/s 80CCE- Maximum Exemption up to  Rs. 150000/-  Investments up to Rs. 1.5 lac in PF, VPF, PPF, Employee contribution in NPS,Insurance Premium, Housing loan principal repayment, NSC, ELSS, long term bank Fixed Deposit, Post Office Term Deposit, etc. are deductible from the taxable income. There is no limit on individual items, (for example) all 1 lac can be invested in NSC or PPF etc.
 
U/s 80CCD -The Finance Act, 2011 provides that contribution made by the Central Government or any other employer to NPS (up to 10 per cent of the salary of the employee in the previous year)shall be excluded while computing the limit of Rs. 1,50,000.The contribution by the employee to the NPS will be subject to the limit of Rs. 1,00,000.

U/s 80CCG - Rajiv Gandhi Equity Savings Scheme is a new exemption available for investment in stock markets (direct equity). Avaialble only for those with gross income less than 12 lacs and only for first time investors in stock market. Exemption available at 50% of investment subject to maximum of Rs.50,000/- invested. Investments are locked-in for three years

U/s 80D Medical Insurance Premium (such as Mediclaim & Critical illness Cover)& Health Check up Upto Rs. 5000, premium is exempt up to Rs. 30,000/ per year (Rs.15,000/- for self,spouse and children ) (Rs. 15000/- for Parents. If the premium includes for a dependent who is (Senior Citizen) above 60 years of age, an extra Rs. 5,000//- can be claimed.

U/s 80DD Deduction in respect of medical treatment of handicapped dependents is limited to Rs. 50,000/- per year if the disability is less than 80% and Rs. 1,00,000/- per year if the disability is more than 80%

U/s 80DDB Deduction in respect of medical treatment for specified ailments or diseases for the assesse or dependent can be claimed up to Rs. 40,000/- per year. If the person being treated is a senior citizen, the exemption can go up to Rs. 60,000/-. but any amount received under Medical Insurance Policy will be reduced from the amount of deduction allowed. The Diseases and ailments specified under rule 11DD are.
  1. neurological diseases being demetia, dystonia musculorum deformans, motor neuron disease, ataxia, chorea, hemiballismus, aphasia and parkisons disease,
  2. cancer,
  3. AIDS,
  4. Chronic renal failure,
  5. hemophilia, and 
  6. thalassaemia.
U/s 80E Interest repayment on education loan (taken for higher education from a university of self & dependents) is completely tax exempt

U/s 80G Donations given for certain charities are tax exempt. Some(NGO,Trust etc.) are exempt to the tune of 50%, whereas Govt funds are 100%.

U/s 80GG If you are not getting  HRA, but living in rented house, an exemption is available. This will be calculated as minimum of (25% of total income or rent paid - 10% of total income or Rs. 24,000/- per year)

U/s 80U who suffers from not less than 40 per cent of any disability is eligible for deduction to the extent of Rs. 50,000/- and in case of severe disability to the extent of Rs. 100,000/-

U/s 80TTA introduced through Finance Act, 2012. Section 80TTA provides a deduction of up to Rs. 10,000 on your income from interest on saving bank accounts.

DEDUCTION u/s. 80C and chapter VIA
U/s. 80C of the Income Tax Act allows certain investments and expenditure to be deduct from total income. One must plan investments well and spread it out across the various instruments specified under this section to avail maximum tax benefit. There are no sub-limits and is irrespective of how much you earn and under which tax bracket you fall. Most of the Income Tax payee try to save tax by saving under Section 80C of the Income Tax Act.  However, it is important to know the Section in total. so that one can make best use of the options available for deduction under income tax Act. One important point to note that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions.

Qualifying Investments u/s 80CCE
  • Provident Fund (PF) & Voluntary Provident Fund (VPF) PF is automatically deducted from your salary. your contribution [12% of Basic] (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.
  • Life Insurance Premiums: Any amount that you pay towards life insurance premium in Life Insurance Corporation (LIC) or any other Insurance CO.for yourself, your spouse or your children can also be included in Section 80C deduction. If you are paying premium for more than one insurance policy, all the premiums will be included. also premium paid for ULIP will also be treated as Premium paid for Life Insurance Policies.
  • Unit linked Insurance Plan : ULIP stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments.They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.
IMP : Total Amount Received at Maturity, Survival Benefits, Withdrawal in Insurance Policies is Tax Free and fully exempted u/s 10(10D).
  • Public Provident Fund (PPF): Among all the assured returns small saving schemes, 
  • Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs. 500 and maximum is Rs. 1,50,000.(New Change) from Budget 2014
  • National Savings Certificate (NSC): National Savings Certificate (NSC) is a 5-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is  8.58% compounded half-yearly, i.e. If you invest Rs.100, it becomes Rs.150.90 after five years. The interest accrued every year is liable to tax (i.e. to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.
  • Home Loan Principal Repayment & Stamp Duty and Registration Charges for a home Loan The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.
  • Tuition  fees  for 2 children  Apart form the above major investments expenses for children’s education (Only Tution Fee (for which you need receipts)), can be claimed as deductions under Sec 80C.
  • Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.
  • 5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.
  • 5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per cent rate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.
  • Pension Funds or Pension Policies – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it means that the total deduction available for 80CCC and 80C is Rs 1.5 Lakh.This also means that your investment in pension funds upto Rs.1.5 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed  Rs.1.5 Lakh.
  • Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.
  • NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.
  • Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.

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

Due Date of ST Return 1st Quarter extended to 14.11.2014

CBEC has issued an order to extend due date of Service Tax Return for 1st Quarter to 14.11.2014 vide No. 02/2014-ST dated 24th Oct., 2014 for the period from April-2014 to Septermber-2014.  The Actual due date of Service Tax Return is 25th October, 2014. The extended due date of filing of Service Tax Return order is as under :

F.No.137/99/2011-Service Tax
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

***
New Delhi, the 24th October, 2014

ORDER NO. 02/2014-SERVICE TAX
In exercise of the powers conferred by sub-rule (4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1st April 2014 to 30th September 2014, from 25th October, 2014 to 14th November, 2014.

The circumstances of a special nature, which have given rise to this extension of time, are as follows:
“Natural calamities in certain parts of the country.”

Himani Bhayana
Under Secretary (Service Tax)
Central Board of Excise and Customs

Transport Allowance and Travelling Allowance Rules at a glance

At first glance, both transport allowance and traveling allowance might look the same. But, the two are very different for Central Government employees. Recent spate of orders issued by the DOPT and Finance Ministry on TRAVELLING ALLOWANCE was the inspiration behind this write-up.

In its order last week, the DOPT said that senior officers who have to travel by air for official purposes may not have to submit the boarding passes while settlement of TA claims. They will have to henceforth submit the passes only when required. The very next day, the Finance Ministry issued an order that made it mandatory for senior officials to submit boarding passes alongwith TA bills for air journey performed on Government account.

The concept of Transport Allowance was introduced by the 5th CPC to defray the cost of commuting between residence and office. The 6th CPC while recommending CCA to be subsumed in Transport Allowance. Transport Allowance is given to the Central Government employees for their everyday commute to and from the workplace. Based on their Grade Pay or Band Pay, this could be anything between Rs. 400 to Rs. 3200 per month. It also depends on the population of the city or town where the office is located. Transport allowance is twice the normal amount for physically challenged employees.

Travelling allowance is given to employees who have to travel out of station for official work. There are a number of rules, guidelines and restrictions that control travelling allowance. DOPT and the Ministry of Finance issues amendment orders related to travelling allowances from time to time.

Traveling allowance differs based on the employee’s grade pay. The ‘Grade Pay’ for determing the TA/DA entitlement is as indicated in Central Civil Service(RP)Rules 2008. Depending on the grade pay, the employee has to opt for the appropriate class of accommodation while travelling via bus, train, ship or by aeroplane. The employee can refund only that amount that he is entitlement for. The Finance Ministry order published on 23.9.2008, OM explained the details of the Travelling allowance and entitlements for Government officials as per title given below…
Government officials on Tour: Travelling Allowance and Entitlements, Entitlement for journeys on tour and travel entitlements within the country, International Travel Entitlement, Mileage allowance for journeys by road, Daily Allowance, Travelling allowance on Transfer, Transfer Grant and Packing Allowance, Transportation of Personal Effects, Transportation of Conveyance, Travelling allowance Entitlement of Retiring employees, Lumpsum Transfer Grant and Packing Allowance
Daily Allowance : If the official tour on is of longer duration, then the employee is paid Daily Allowance to meet his boarding and lodging expenses. This too depends on the Grade pay of the employee. This is what is known as TA/DA.

While seeking the TA/DA claims, the employee has to present receipts and bills. In this regard, the notification, that senior officials are not required to submit the boarding passes while seeking reimbursement of their air travel expenses, was confusing. The order is not applicable to Group ‘C’ employees.

But some have misunderstood the order and have assumed that it was for the air travel facility that is available as part of the Leave Travel Concession.

Source: 7thpaycommissionnews.in

Wish you Happy Diwali to all "Gsoftnet" readers.

Dear All Blog Visitors,

Wishing each one of you a very happy and prosperous deepawali. May this year brings you lots and lots of happiness in life and fulfill all your dreams.

As the candlelight flame,
Your life may always be happiness' claim;
As the mountain high,
You move without sigh;
like the white linen flair,
Purity is always an affair;
As sunshine creates morning glory,
fragrance fills years as flory;
with the immaculate eternal smile,
attached to You mile after mile;
All darkness is far away,
As light is on its way;


Wish all of you a very Happy Diwali.



Diwali | Forward this Card


Latest e-Tutorial on online Correction of all Challans by TRACES For Asstt. Year 2015-16.

The Online Correction functionality is now enabled for TDS Statements prior to FY 2012-13 also (Financial Year 2007-08 onwards), provided at least one correction for the relevant statement has been processed by CPC (TDS) if there is an error while making payment of Tax either electronically or manually. To rectify these errors, Income-Tax Department has issued new guidelines effective 01-09-2011 which allows Banks to correct physical challans only. For correction in electronic challans, request will have to be made to the concerned Assessing Officer. For general benefit, I am elaborating the the procedure for correction in the tax challan.

Correction in physical challans:
Fields that can be corrected by bank:
  • Assessment Year
  • Major Head Code
  • Minor Head Code
  • TAN/PAN
  • Total Amount
  • Nature of payment (TDS Codes)
Time frame for correction request:
  • Request for correction has to be made within 7 days of deposit of challan for correction in PAN, TAN and Assessment Year
  • For Major head, minor head and nature of payment, request can be made within 3 months of deposit of challan.
Remedy available after time frame is over:
  • After lapse of time frame, request can be made to the Assessing Officer.
Time frame given to bank to carry out correction:
  • After receipt of request, bank must carry out the correction within 7 days.
Other conditions for correction:
  • Correction in name is not allowed
  • Any combination of correction of Minor Head and Assessment Year together is not allowed
  • PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.
  • The change of amount will be permitted only on the condition that the amount so corrected is not different from the amount actually received by the bank and credited to Govt. Account.
  • For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.
  • There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.
Procedure for requesting correction: 
  • The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
  • The tax-payer has to attach copy of original challan counterfoil.
  • In case of correction desired for challan in Form 280, 282, 283, the copy of PAN card is required to be attached.
  • In case of correction desired for payments made by a tax-payer (other than an individual), the original authorization with seal of the non-individual taxpayer is required to be attached with the request form.
  • A separate request form is to be submitted for each challan.
Correction in Electronic Challans:
For correction in electronic challans and for correction after the time period for application to bank lapses in physical challans, a written request in prescribed format has to be made to the Assessing Officer. Assessing Officer has power to rectify the error , in bona fide cases, to enable credit of tax to assessee

Form of application to bank:
Income-tax department has given a format in which application can be made to the bank.

Download New e-Tutorial for Online Correction in Challan (Click Here)

7th Pay Commission proposes to visit Mumbai from 6th to 8th November, 2014.

The commission has, in its first phase of interaction, been seeking the views of various stakeholders on its terms of reference. To this end, meetings have been held in Delhi with various organisations and heads of various agencies.

In its second phase of interaction, the Commission has started holding meetings in different parts of the country to facilitate stakeholders staying in various areas to present their views personally before the Commission and ensure larger representation. This exercise is being undertaken to enable the Commission to get a first-hand impression about the functioning and the condition of service prevailing in different parts of the country.

Accordingly, the Commission, headed by its Chairman, Justice Shri A. K. Mathur, proposes to visit Mumbai from 6th November, 2014 to 8th November, 2014. The Commission would like to invite various entities/associations/federations representing any/all categories of employees covered by the terms of Reference of the Commission to present their views.

Your request for a meeting with the Commission may be sent through e-mail to the Secretary, 7th Central Pay Commission at secy-7cpc@nic.in. The memorandum already submitted by the requesting entity may also be sent as an attachment with this e-mail.

The last date for receiving request for meeting is 30th October, 2014 (1700 hours).

Salary modes & Income Tax reliefs by amended Finance Act, 2014 for Asstt. Year 2015-16.

Advance learning on tax treatment of various forms of salary like bonus, overtime pay, salary in lieu of notice period, etc. (Theory)
Tax treatment of advance salary :
Advance salary received by an employee is taxed in the year of receipt. The rule behind this is the basis of taxability of salary, i.e., salary is taxed on due or receipt basis, whichever is earlier. However, an employee can claim relief under section 89 (discussed later) in respect of advance salary.

Arrears of salary :
Arrears of salary received by an employee are taxed in the year of receipt if the same were not taxed earlier on due basis. However, an employee can claim relief under section 89 (discussed later) in respect of arrears of salary.

Tax treatment of bonus :
Bonus received by an employee is charged to tax in the year of receipt. Relief under section 89 can be claimed in respect of arrears of bonus received during the year.

Tax treatment of fees or commission :
Fees or commission received by the employee from the employer are charged to tax as salary income. Commission will be taxed as salary income, irrespective of the fact that it is received as fixed monthly amount or is received as a percentage of any particular item like turnover achieved by the employee.

Tax treatment of salary in lieu of notice period :
Salary in lieu of notice period is charged to tax on receipt basis, i.e., it is charged to tax in the year of receipt.

Gifts received from the employer :
Any voluntarily gift received by the employee from the employer is charged to tax as salary income (perquisite). However, non-monetary gifts are exempt upto Rs. 5,000. The detailed tax treatment of gift in the form of perquisite is discussed in advance learning on perquisites.

If gift has no relation to the service rendered by the employee, then the same can be charged to tax under the head “Income from other sources”.

Compensation received from the employer :
Compensation received from the employer in connection with modification of terms of employment will be charged to tax as salary income, i.e., profits in lieu of salary.

Pay for extra work :
If an employee receives any payment in respect of extra work done by him then the same is charged to tax under the head “Salaries”. In other words, remuneration received for extra work will be charged to tax as salary income.

Tax treatment of allowances :
Tax treatment of various allowances is discussed in the advance learning on allowances.

Tax treatment of perquisites :
Tax treatment of various perquisites is discussed in the advance learning on perquisites.

Tax treatment of retirement benefits :
Tax treatment of various retirement benefits is discussed in the advance learning on retirement benefits.

Tax treatment of salary received by a partner :
For taxing any income under the head “Salaries”, the relation of the payer and payee should be that of the employer and the employee. In case of a partnership firm, the partners are not the employees of the firm and, hence, salary received by the partners from the firm is not charged to tax under the head “Salaries”. Salary received by partner from the firm is charged to tax under the head “Profits and gains of business or profession”.

Tax treatment of salary received by an Indian citizen deputed outside India :
Salary received by an Indian citizen deputed outside India by the Government is treated as income deemed to be accrued or arisen in India and will be taxed in India. However, in such a case allowance and perquisites will be exempt from tax.

Tax treatment of salary foregone by the employee :
Salary is charged to tax on due or receipt basis whichever is earlier, hence, salary foregone by the employee is charged to tax on due basis, even though it is not received by him. In other words, salary foregone after its accrual is charged to tax, even though it is not received by the employee.

Tax treatment of surrender of salary to the Central Government :
Salary foregone after its accrual is charged to tax, even though it is not received by the employee. However, if salary is surrendered to the Central Government under section 2 of the Voluntary Surrender of Salary (Exemption from Taxation) Act, 1961, then such surrendered salary is not charged to tax.

Tax treatment of salary received from the UNO :
Salary received from the United Nations Organisation is exempt from tax as per section 2 of the United Nations (Privileges and Immunities) Act, 1947.

Tax treatment of amount received before joining the job :
Any payment received by an employee from his present employer or former employer or prospe ctive employer will be charged to tax under the head “Salaries” (as profits in lieu of salary). Hence, amount received from prospective employer will also be charged to tax under the head “Salaries”.

Relief under section 89 in respect of arrears of salary :
Under section 89, read with Rule 21A(2), an employee can claim relief in respect of arrears of salary. Relief can be computed in the following manner:
Step 1 : Calculate total tax liability (including surcharge and cess, if any) on the total income, including the additional salary of the previous year in which such salary is received.

Step 2 : Calculate total tax liability (including surcharge and cess, if any) on the total income, excluding the additional salary of the previous year in which such salary is received.

Step 3 : Find the difference between tax computed at (1) and (2) above.

Step 4 : Calculate total tax liability (including surcharge and cess, if any) on the total income, including the additional salary of the previous year(s) to which such salary relates to. 

Step 5 : Calculate total tax liability (including surcharge and cess, if any) on the total income, excluding the additional salary of the previous year(s) to which such salary relates to.

Step 6 : Find the difference between tax computed at (4) and (5) above. Relief under section 89 is the excess of tax computed at Step 3 over tax computed at Step 6. No relief is available, if tax computed at Step 3 is less than tax computed at Step 6. If the additional salary pertains to more than one previous year, then relief shall be computed in above manner by spreading such salary over the previous years to which such salary pertains to.

To read details of this Amendment Finance Act, 2013 (Click Here)

Approval of Long Term Bond and Rate of Interest for concessional TDS under Sec. 194LC w.e.f. 1.10.2014 - CBDT.

CBDT prescribes conditions to get automatic approval for long term bonds for concessional TDS under Sec. 194LC vide circular No. 15/2014 dated 17th Oct., 2014.

Section 194LC of Income Tax Act, 1961, introduced by the Finance Act, 2012, provided for lower withholding tax at the rate of 5% on the interest payments by Indian companies on borrowings made in foreign currency by such companies from a source outside India.  The benefit was available in respect of borrowings made either under an agreement or by way of issue of long terms infrastructure bonds.  The section further provided that such borrowing and the rate of interest should be approved by the Central Government Subsequently with a view to lower the compliance burden and reduce the time lag which would have arisen on account of case-by-case approval, the Central Government has decided to grant approval to all borrowings by way of loan agreement on long term infrastructure bond provided by satisfy certain condition.  The approval and the conditions were detailed in the CBDT circular No. 7 of 2012 dated 21st Sep., 2012.

The Finance (No.2) Act, 2014 has amended section 194LC w.e.f. 01.10.2014.  Consequent to the amendment, the concessional rate of withholding tax has been extended to borrowing by way of any long term bonds, not limited to a long term infrastructure bond, if the borrowing is made on or after 1st day of October, 2014.  Further, the concluding date of the period of borrowings eligible for concession under Section 194LC which was earlier 01.07.2015 has been extended to borrowings made before the 1st day of July, 2017.

Therefore, the approval of the Central Government is further required in respect of long term bond issue and the rate of interest to be paid on such borrowings.

Considering the fact that there would be a large number of bond issues to be undertaken by Indian companies, providing a mechanism involving approval in each and every specific case would entail avoidable compliance burden on the borrower/issuer of bond.  In order to mitigate the compliance burden and hardship, the CBDT (with the approval of the central Government) coneys the approval of the central Government for the purposes of section 194LC in respect of the issue of long term bond including long term infrastructure bond by Indian companies which satisfy the following conditions:
  • The bond issue is at any time on or after 1st day of October, 2014 but before the 1st day of July, 2014.
  • The bond issue by the Indian company should comply with clause (d) of sub section (3) of section 6 of the foreign Exchange Management Act, 1999 read with Notification No. FEMA3/2000-RB viz. Foreign Exchange Management (Borrowing or Lending in Foreign exchange) Regulations 2000, dated May 3, 2000, as amended from time to time (hereafter referred to as "ECB regulations"), either under the automatic route or under the approval route.
  • The bond issue should have a loan Registration Number issued by the RBI.
  • The term "long term" means that the bond to be issued should have original maturity term of three years or more.
Further, the Central Government has also approved the interest rate of the purpose of section 194LC in respect of borrowing by way of issue of long term bond including long term infrastructure bond as any rate of interest which is withing the ALL-in-cost ceilings specified by the RBI under ECB regulations as applicable to the borrowing through a long term bond issue having regard to the tenure thereof.

In view of the above, any bond issue, which satisfies the above conditions, would be treated as approved by the Central Government for the purposes of section 194LC.

It is also clarified that consequent to the amendment to section 194 LC the approval of the Central Government contained in Circular No. 07/2012, in so far as they apply to borrowings by way of a loan arrangement, shall be valid for the borrowings made on or before 30/06/2017 instead of 30/06/2015 as emendation in the said Circular.


Download Circular (Click Here)

CBDT extends due date of filing 2nd Quarter TDS/TCS returns for Asstt. Year 2015-16

CBDT has issued a Press Release on 17th Oct., 2014 to extend due date of filing of TDs/TCS Statements for 2nd Quarter for Fin. Year 2014-15 for specially deductors/collections belonging to states of Andra Pradesh, Jammu & Kashmir, Odisha and Telangana State.

In view of the recent natural calamities in the States of Andhra Pradesh, Jammu & Kashmir, Odisha & Telangana, the Central Board of Direct Taxes has issued an order extending the due date for filing the TDS/TCS Statements for the 2nd Quarter of Financial year 2014-15 by the deductors/collectors in these States.  In case of Government deductors/collectors that are mapped to a valid AIN, the due date is extended from 31st October, 2014 to 7th November, 2014. In case of all other deductors/collectors, the due date is extended from 15th October, 2014 to 31 st October, 2014.

Download Due Date Extended TDS/TCS 2nd Quarter Statement Press Release (Click Here)

Request to TDS Deductors to follow up for Filing of Form No. 24G For Asstt. Year 2015-16 - CPC (TDS)

This is to inform you that your office (Accounts Office Identification Number (AIN)) have filed Form 24G for all 12 months in Financial Year 2013-14, however, you have not filed Form no. 24G for any of the months during Financial Year 2014-15.
  • Please note that In case of delay in filing of Form No. 24G by the AINs:
  • There would be delay in generation of Book Identification Number (BIN) and subsequent intimation of the same by the PAOs to the concerned DDOs.
  • This contributes towards delay in filing of quarterly TDS/ TCS statements resulting into levy of late filing fee u/s 234E of the I.T. Act (a sum of Two Hundred Rupees for every day during which the failure continues) on the deductors.
  • Late filing of TDS statements also results into the TDS Credit not being available to the deductees (employees / vendors) for claiming the amount of tax already deducted from the payments made to them besides generating correct TDS Certificates for them.
  • In view of the above, you are advised to file Form No. 24G well within the due date so that the DDOs are able to file there quarterly TDS / TCS Statements within the due time and avoid levy of fee u/s 234E of the Income Tax Act.
In case you have not filed due to one of the following probable reasons, please inform accordingly to this office with due support of documents:
a) the filing has been centralized and the filing is being done under any other AIN - Please surrender the AIN already allotted to you under intimation to this office
b) new AIN has been procured for filing Form No. 24G and old AIN no. is discarded - Please surrender the AIN already allotted to you under intimation to this office
c) not filed due to some internal problems of organization - Please take necessary steps to file 24G on priority basis under intimation to this office
d) any other problem - Please take necessary steps to file 24G on priority basis under intimation to this office
CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

CPC (TDS) wants Feedback from Taxapayers' on Deductor's Survey.

CPC(TDS) feels glad to release a survey "Deductor's Survey Questionnaire: Your Feedback Matters" with an objective to understand your satisfaction since the time CPC(TDS) and TRACES website came into existence. CPC(TDS) has undertaken transformational initiatives to improve overall service levels for deductors and tax payers by following:-
  • Faster Processing of Quarterly TDS Statements, including Corrections
  • Enablement of Online Correction facility.
  • e-tutorials and FAQs for educating user community.
  • Timely communication for correct reporting of TDS / TCS.
  • Assisting deductors/collectors for rectification of Defaults.
Through this survey, CPC(TDS) would like to collect your valuable opinion in enhancing the services offered. The Link for the survey is provided below and you are requested to fill this survey with your honest and unbiased feedback after logging on TRACES portal.

Link: https://www.tdscpc.gov.in/app/login.xhtml

For any assistance, you can call our toll-free number 1800 103 0344.

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

Adjust Excess TDS paid in next Coming Months.

There are many discrepancy regarding adjustment of Excess TDS deductions.  If the deductor remitted excess TDS amount from any employee under section 192, it can be adjusted under the same section in the coming month.

As per Income Tax Act for TDS Deduction under section 192(3), it is clearly provides that the deductor can enhance reduce the amount of tax to be deducted for the purpose of adjusting any excess or deficiency in previous action of deduction of tax at source. The excerpts of the said provision is given below:
“(3) The person responsible for making the payment referred to in sub-section (1) or sub-section (1A)or sub-section (2) or sub-section (2A) or sub-section (2B) may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.”
Therefore, you can do the said adjustment without any hesitation.

CBDT speeds up refund claims of taxpayers of J&K - Press Release

CBDT has issued a press released on 15thth October, 2014 regarding immediate issue of Income Tax Refund claim to taxpayers of J & K due to devastation caused by floods u/s. 139 of Income Tax Act, 1961.

In view of the large devastation caused by the recent floods in Jammu & Kashmir, the Income tax Department is taking necessary steps to process expeditiously the refund claims of the taxpayers residing in the state of Jammu & Kashmir who have submitted their returns through electronic mode. Instances have come to notice where the refund cheques could not be delivered at the address indicated by the taxpayers in their returns due to dislocation caused by floods.

Non-Corporate taxpayers of Jammu and Kashmir who desire to provide a new address for delivery of their refund cheques, may log in to the e-filing site https://incometaxindiaefiling.gov.in, and update their address through the path Profile Setting -> My Profile-> Address . Alternatively, the taxpayers can contact the helpdesk at Centralised Processing Centre (CPC), Bangalore at 1800 425 2229 and provide the updated address.


Updated Interest Rates on late deposit of service tax

Simple interest rate enhanced, where there is short payment or delay in payment of service tax, vide notification no. 12/2014-ST, dated 11th July, 2014

As per section 75, interest on delayed payment of service tax would be as follows:
  • Turnover below Rs. 60lacs in F.Y/preceding F.Y.–15% p.a
  • Turnover above Rs. 60lacs in F.Y/preceding F.Y. – 18% p.a.
Another Simple interest rates per annum payable under section 75, to vary on the basis of extent of delay in payment of service tax w.e.f. 1st October, 2014 are as under :

Extent of delay Simple interest rate per annum:
  • Up to six months            18%
  • From six months and up to one year    24%
  • More than one year            30%

Public Holiday Declare on 15.10.2014 as General Assembly Elections in Maharashtra

Maharahstra Government and Indian Bank Association has issued orders on declaration of Public Holiday under Negotiable Instruments Act, 1881 on 15.10.2014 on account of polling for the General Assembly Elections in the State of Maharashtra.

Indian Banks’ Association
HR & INDUSTRIAL RELATIONS

No.CIR/HR&IR/H6/2014-15/727
October 9, 2014

All Members of the Association
(Designated Officers)

Dear Sirs,

Public holiday under Negotiable Instruments Act, 1881 on Wednesday, 15th October 2014 on account of General Assembly Elections in the State of Maharashtra.  We enclose a copy of notification No.PHD.1114/C.R/343/2014/XXIX dated 7th October 2014 issued by the Government of Maharashtra declaring Wednesday, 15th October 2014 as Public holiday under the Negotiable Instruments Act, 1881(XXVI of 1881), on account of polling for the General  Assembly Elections in the State of Maharashtra.

This is for information of member banks.

Yours faithfully,
sd/-
K S Chauhan
Sr. Vice Presidenl-HR&IR

MAHARAHSTRA GOVERNMENT ORDER

GENERAL ADMINISTRATION DEPARTMENT
Madam Cama Road, Hutatma Rajguru Chowk, Mantralaya,
Mumbai 400 032, dated the 7th October 2014.

NOTIFICATION

NEGOTIABLE INSTRUMENTS ACT, 1881.

No. PHD. 1114/C.R.343/2014/XXIX.— In exercise of the powers entrusted to the Government of Maharashtra by the Government of India, Ministry of Home Affairs vide its Notification No.39/1/68/Judi-III, dated the 8th May 1968 under section 25 of the Negotiable Instruments Act, 1881 (XXVI of 1881), the Government of Mnharashtra hereby declares as a Public Holiday in the State, on the day of Polling i.e. Wednesday, 15th October 2014 for the General Assembly Elections.

The Departments of Mantralaya are requested to bring these instructions to the notice of  the Corporations / Undertakings and Semi-Government bodies under their administrative control and advise them to extend the facility to the employees.

By order and in the name of the Governor of Maharashtra,
P. P. GOSAVI,
Deputy Secretary to Government.

Source: www.iba.org.in

Rs. 10 Lakh Compensation if Government Employee Dies During Election Duty

The Tamil Nadu Election Commission’s Chief Commissioner, Praveen Kumar says that the Election Commission has announced a compensation of Rs. 10 lakhs for employees who die while on election duties.

Normally during state elections, more than 3 lakh state and Central Government employees, including teachers, local police personnel, police personnel from the neighboring states, paramilitary forces and private videographers, participate.

If death occurs in poll-related violence or if the employee dies of cardiac arrest while on election duty, his/her family was, until now, given a compensation of Rs. 5 lakhs. This has been increased to Rs. 10 lakhs from 2014 onwards. Under this scheme, personnel who had died on duty during the May elections will be paid a compensation of Rs. 10 lakhs, says Praveen Kumar.

If the death is unfortunately caused due to any violent acts of extremist or unsocial elements like, road mines, bomb blasts, armed attacks, etc., the amount of compensation would be Rs.20 lakhs. In the case of permanent disability, like loss of limb, eye sight, etc., a minimum ex-gratia payment of Rs.5 lacs would be given to the official (which would be doubled in the case of such mishaps being caused by extremist or unsocial elements as aforesaid).

Source: 7thpaycommissionnews.in

CBEC direct to Officer can verify Excise Audit- Circular

Earlier, in Travelite (India) case [TS-310-HC-2014(DEL)-ST], Delhi HC struck down Rule 5A(2) of Service Tax Rules requiring production of records to audit party on demand and CBEC Circular dated January 1, 2008 pertaining to general audit, as ultra vires the Finance Act. It held that Parliament had clear intention to provide for only special CBEC direct to Officer can verify Excise Audit- Circular u/search 72A of Finance Act on fulfilment of special circumstances, and it did not contemplate a general audit that “every assessee” may be subjected to “on demand”. However, now the CBEC has issued Circular clarifying on powers of Central Excise Officers to conduct audit. Clarifies that the above refereed Judgment does not deal with issue of audit in Central Excise and there is adequate statutory backing for conducting audit by Excise officers. Therefore, Central Excise Officers to continue conduct of audit, as provided in statute.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE AND CUSTOMS CIRCULAR
NO 986/10/2014-CX., Dated: October 9, 2014

To
The Chief Commissioners of Central Excise (All)

Sub: Audit by officers of Central Excise-reg.

Doubts have been raised in certain quarters regarding powers of a Central Excise officer to conduct audit, in the background of a recent judgment of Hon'ble High Court of Delhi dated 04.08.2014 in case of M/s Travelite (India) [2014-TIOL-1304-HC-DEL-ST] wherein the Hon'ble court has held that the powers to conduct audit as envisaged in rule 5A (2) of the Service Tax Rules, 1994, does not have appropriate statutory backing and therefore quashed the rule.

2. It may be noted that the judgment did not deal with the issue of audit in Central Excise.

It is further clarified that in Central Excise there is adequate statutory backing for audit by the Central Excise Officers. The statutory provisions relevant for audit is clause (x) of Section 37(2) and rule 22 of the Central Excise Rules, 2002. For ease of reference, Section 37(2 )( x) is reproduced below :-

Section 37: Power of the Central Government to make rules -

"37(2)(x) : impose on persons engaged in the production or manufacture, storage or sale (whether on their own account or as brokers or commission agents) of salt, and, so far as such imposition is essential for the proper levy and collection of the duties imposed by this Act, of any other excisable goods, the duty of furnishing information, keeping records and making returns, and prescribe the nature of such information and the form of such records and returns, the particulars to be contained therein, and the manner in which they shall be verified; "

3. Rule 22 of the Central Excise Rules, 2002 provides that the Commissioner may empower an Officer or depute an audit party for carrying out scrutiny or verification of records of the assessee. The rule also obliges an assessee to make available records for such scrutiny.

4. The statutory backing for rule 22 thus flows from clause (x) of section 37(2) and the general rule making powers under section 37(1) of the Central Excise Act, 1944. Clause (x) of section 37(2) empowers the Central Government to make rules for verification of records and returns to check the correctness of levy and collection of duty which in the present regime of self-assessment would mean verification of correctness of self-assessment and payment of duty by the assessee. It may be noted that the expression "verification" used inthe section is of wide import and would include within its scope, audit by the Departmental officers, as the procedure prescribed for audit is essentially a procedure for verification mandated in the statute.

5. It is therefore clarified that officers of Central Excise shall continue to conduct audit, as provided in the statute. This clarification may be brought to the notice of the field formations. H indi version will follow. Difficulty, if any, in the implementation of the instruction may be brought to the notice of the Board.

F. No. 206/10/2014-CX.6
(ROHAN)
OSD (CX.6)

CPC (TDS) Directs to TDS Deductor to follow up for Payment of "Tax Deducted" within stipulated time.

You may be aware that, in accordance with the provisions of Rule 30 of the Income Tax Rules, 1962; all sums deducted in accordance with the provisions of Chapter XVII-B of the Income Tax Act, 1961, shall be paid to the credit of the Central Government on or before seven days from the end of the month in which the deduction is made.

However, as per the records of the Centralized Processing Cell (TDS), this has been observed that there has been substantial delay in payment of the "amount of Tax Deducted" during the Financial Year 2013-14.In such case, this leads to Short/ Late Payment Defaults in your TDS Statements.

Please make note of the following important information in this regard:
  • Please note the provisions of section 200(1) of the Income Tax Act,1961;
  • Duty of Person deducting Tax:
  • Any person deducting any sum in accordance with [the foregoing provisions of this Chapter] shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs.
  • Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs.
  • Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time,[prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority or the person authorized by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.]
  • If the tax is not paid in accordance with the provisions of the Act, it may attract penal Interest u/s 201(1A) and 220(2) of the Act.
  • Any such interest paid above will not be considered as deductible expense under the provision of section 43(ia) of the Act
Action to be taken:
CPC (TDS) suggests for payment of all sums deducted within stipulated time to avoid Defaults related with the delay in payment of sums to the credit of the Government.

For any assistance, you can call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM

No TDS liability under sec. 194H if exp. incurred for rendering free services

Where payment of rent did not exceed limit of Rs. 1,20,000 specified under section 194-I, assessee was not liable to deduct TDS.

Where expenses were wrongly ledgerised under commission account while expenses were, in fact, for free services, assessee was not liable to deduct TDS.

Where payment of advertisement and publicity expenses was below specified limit of Rs. 50,000 in whole of year, assessee was not liable to deduct TDS.

Where PF and ESI were not made within due date of respective Acts but were paid within due date of filing of return of income, deduction was to be allowed.

Source: www.taxmann.com

Due Date of 2nd Quarter, Utility and Does & Don't for Filing of TDS Return For A.Y. 2015-16.

The e-filing submission of 2nd Quarter TDS Return last date is 15th October, 2014 for Fin. Year 2014-15. While submitting your e-Return of 2nd Quarter TDS/TCS for Asstt. Year 2015-16, it can be check before submission of 2nd Quarter Statement that the TDS Return can be done with proper FVU or RPU Version which suggest by TIN-NSDL or prepare by a professional or expert. File TDS returns for Quarter 2 of FY 2014-15 by 15th October 2014.For Government deductors due date is 30.10.2014.  TDS return filing date for second quarter of FY 2014-15 falls due on 15th October 2014. Deductors are required to file TDS returns before it to avoid late filing fees or penalty.  However keeping in view all such things some suggestions are given below :

Does & Don't for filing TDS Returns :

Does
  • Ensure that TDS return is filed with same TAN against which TDS payment has been made.
  • Ensure that correct challan particulars including CIN and amount is mentioned.
  • Correct PAN of the deductee is mentioned.
  • Correct section is quoted against each deductee record.
  • Tax is deducted at correct rate for each deductee record.
  • File correction statement as soon as discrepancy is noticed.
  • Issue TDS certificate downloaded from TRACES website.
Don't
  • Don't file late returns as it affects deductee tax credit.
  • Don't quote incorrect TAN vis-à-vis TDS payments.
Download TDS Return Preparation Software Ver. 4.1 w.e.f. 23.09.2014 (Click Here)

Download e-TDS/TCS FVU Ver. 4.4 and 2.140 Ver. w.e.f. 23.09.2014 (Click Here)

Free Download Tax Calculation Software for A.Y. 2015-16 & deduct TDS by average of 6 Months from Oct-2014.

As per new Government of India, The Finance Minister had placed union Budget 2014-15 and rising Tax Exemption Limit for Individuals by Rs. 50000/- each for Male and Female whether they are in Service or Pensioners. Due to this decision Taxpayee can get Tax Relief by Rs. 5150.00 whose Taxable Income below Rs. 500000/-.  For Fin. Year 2014-15 more than 6 months are passed. Now Tax payee has only 5 months in hands and last month is for calculation. Therefore we are suggest to all Taxpayee (Specially Salaried Persons) to calculate TAX and deduct from OCT-2014 and avoide unwanted burden of TAX.   As per Budget 2014-15 the Income Tax Slab is as bellow:


UPDATED INCOME TAX SLABS
1. Tax Slab for an Individual (resident & below 60 years) or HUF/AOP/BOI/AJP
Income Slabs
Tax Rates
Total income up to Rs. 2.5 Lac
0% Tax
Total income above Rs. 2.5 Lac and below Rs.5 Lac
10% on amount exceeding Rs. 2.5 Lac
Total income above Rs. 5 Lac and below Rs.10 Lac
20% on Income exceeding Rs. 5 Lac + Rs. 25,000
Total income more than Rs. 10 Lac
30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000
  • u/s 87A the Individual having taxable income up to Rs. 5 Lac , can claim rebate, on the Actual Tax amount subject to a maximum of Rs.2,000
  • Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable
2. Tax Slab for an Individual (resident & above 60 years but below 80 years)
Income Slabs
Tax Rates
Total income up to Rs. 3.00 Lac
0% Tax
Total income above Rs. 3.00 Lac and below Rs.5 Lac
10% on amount exceeding Rs. 3.00 Lac
Total income above Rs. 5 Lac and below Rs.10 Lac
20% on Income exceeding Rs. 5 Lac + Rs. 20,000
Total income more than Rs. 10 Lac
30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000
  • u/s 87A the Individual having taxable income up to Rs. 5 Lac , can claim rebate, on the Actual Tax amount subject to a maximum of Rs.2,000
  • Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable
3. Tax Slab for an Individual (resident & above 80 years)
Income Slabs
Tax Rates
Total income up to Rs. 5 Lac
0% Tax
Total income above Rs. 5 Lac and below Rs.10 Lac
20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac
30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac
  • Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable
EDUCATION CESS
  • The amount of Income-tax shall be increased by Education Cess of 3% on Income-tax.
 Main Changes regarding Income Tax  are as follows by this Budget :
  • There is no change in income tax rates in Surcharge and educational cess.
  • Kissan Vikas patra Reintroduced
  • PPF Limit Increased to Rs 150000/-
  • 2 % TDS on payment of Taxable Life insurance maturity amount.
  • Dividend distribution tax Increased

Free Download Updated TDS (TAX) Calculator for Asstt. Year 2015-16