Gsoftnet

Due Date for submission of Audit Reports extended to 31st March, 2015 for the assessee in Jammu & Kashmir.

CBDT has issued a notification on 28th Nov., 2014 to extension of date for submission of Audit Reports from 30th Nov., 2014 to 31st March, 2015 for the Assessee in Jammu & Kashir.

CBDT further state that due to floods in the State of Jammu & Kashmir, therefore under section 119 of Income Tax Act, 1961 ('Act') and in continuation to the earlier order under section 119 of the Act dated 16.09.2014, hereby further extends the "Due Date" of furnishing return of income from 30th Nov., 2014 to 31st March, 2015, in cases of Income Tax Assessees in the State of Jammu & Kashimir which are covered under clause (a) or clause (aa) of Explanation 2 to sub section (1) of section 139 of the Act.

The "due date" for obtaining and furnishing reports of audit for the assessees in the State of Jammu and Kashmir under various provisions of the Act pertaining to such returns of income is also extended to 31st March, 2015.

Extended due Date Notification is as under:


Deductor may confirm that TDS Deductions reaches to Income Tax Department.

Recently, a senior citizen received a notice from the Income Tax Department, asking her to pay Rs 30,000, the tax on her bank fixed deposits for assessment year 2013-14, along with interest, for late payment of tax. She was surprised, as her bank had deducted the tax at source (TDS).

What had happened was the bank had deducted TDS after the end of the financial year, owing to which she didn’t get the tax credit for the previous year.

There are several instances of taxpayers getting notices from the I-T department for no fault of theirs. Notices might be sent if TDS hasn’t been deducted, or if the TDS has been deducted but not paid to the I-T department on time.

If a bank doesn’t deduct TDS on fixed deposits, or does this after the end of the financial year, the onus is on the taxpayer to show he/she doesn’t intend to avoid tax, that it was merely an error. One of the ways to go about this is showing the interest income while filing tax returns and paying taxes. In case this isn’t done, you could file a revised return. But ensure you revise the tax return before the end of the next assessment year, says Rakesh Nangia, of Nangia and Company, chartered accountants.

However, if the interest income is being declared on a cash basis, the assessee can carry forward the TDS by the bank and clam credit in the year in which the income is taxed. In case the fixed deposit is for five years, you could carry forward the TDS and pay it in the last year, when it matures.

If your bank deducts and pays the tax later and you, too, do this (while following an accrual basis), you could claim the tax paid twice by filing a revised return. This process, however, might take time, says Nangia. You will have to take up the matter with the assessing officer of your ward and explain to him the details of your case.

Also, if you change jobs in the middle of a year and the previous employer deducts tax but doesn’t pay this to the I-T department, you might get a tax notice. In this case, too, one must show the income while filing ITR-V and take up the matter with the tax officer.

The sale of a property worth at least Rs 50 lakh involves TDS of one per cent. For such sales, it is the buyer’s responsibility to pay the TDS; also, it is mandatory to do this online. Only then will the seller be able to claim credit for such TDS. Otherwise, the seller could end up paying a huge interest and penalty, Nangia says.

Download updated Income Tax Calculator with Month-wise Salary Statement for Asstt. Year 2015-16

There are many Income Tax Calculator on web but, all are calculate Tax liability on Taxable Income.  They are not provide the facility of month-wise salary statement. Thus, this Tax Calculation utility i.e. specially for Salaried Employee with monthly salary statement is here available.  Now, all Salaried Employee can download this Income Tax Calculation Utility for Asstt. Year 2015-16 to deduct TDS from monthly salary.

SIMPLE METHOD TO TAX CALCULATION FROM SALARY:

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 Income Tax Calculator for
Asstt. Year 2015-16

Procedure of Service Tax Refund / Exemption to SEZ

Department of Revenue, Tax Research Unit of Government of India, Ministry of Finance has issued a Notification No. F. No. B1/6/2013-TRU dated 25th November, 2014 regarding latest procedure of Service Tax Refund / Exempt to SEZ.  The Notification is as under :

F.No.B1/6/2013-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
North Block, New Delhi

25th November, 2014

To,
Chief Commissioners of Central Excise and Service Tax (All),
Commissioners of Service Tax (All),
Commissioners of Central Excise and Service Tax (All).

Madam/Sir,

Subject: Procedure of service tax refund/exemption to SEZreg.

Certain representations have been received through Ministry of Commerce raising the issue that SEZ unit or developer has to approach two authorities (the SEZ authority and with the Jurisdictional Service Tax authority) for upfront exemption under notification No. 12/2013 dated 01.07.2013 as amended.

2. The issue has been examined. The procedure prescribed under the notification No. 12/2013 dated 01.07.2013 as amended is for proper accounting and monitoring of benefit availed by SEZ Unit and developer under the exemption. Further compliance verification at the service provider’s end (in domestic tariff area) would only be feasible if an institutional mechanism for accounting and verification procedure is in place.  However, SEZ units and developer may, if they so desire, route their application for issuance of authorization by department through the specified officer of SEZ instead of submitting directly to the department. Similarly SEZ units and developer, may also route quarterly statement in Form A-3 through the specified officer in the SEZ.  Notification No. 12/2013 dated 01.07.2013 as amended does not put any restriction in this regard.

3. Accordingly the field formations should not object if such requests/intimations are routed through the specified officer in the SEZ.

Dr. Abhishek Chandra Gupta
(Technical Officer, TRU)

Copy to: 1. Director General (Service Tax), Director General (Audit).
         2. Director General (Export Promotion).
         3. Joint Secretary (Customs)

Income Tax Returns and Information provided to Tax Authorities are exempt from disclosure under RTI Act.

Income-tax retruns and information provided to Income Tax Authorities by assessee are confidental and not required to be placed in pubic domain; given nature of income-tax returns and information necessary to support same, it would be exempt under section 8(1)(j) of Right to Information Act, 2005 in respect of individual and unincorporated assessees

In cases of widely held companies most information relating to their income and expenditure would be in public domain and it is only confidential information that would be exempt from disclosure under section 8(1)(d) of 2005 Act

Information furnished by an assessee in income-tax return can be disclosed only where it is necessary to do in public interest and where such interest outweighs in importance, any possible harm or injury to assessee or any other third party, however, information furnished by corporate assessees that neither relates to another party nor is exempt under section 8(1)(d) of 2005 Act can be disclosed

Sournce: www.taxmann.com

Interest U/s. 234A on Income Tax Returns filed till extended due date of 30.11.2014.

Due Date for filing of return of Income for Assessment Year 2014-15 Extended from 30th September, 2014 to 30th November, 2014 in Specified Cases

The CBDT had issued the notification no. F.No.153/53/2014-TPL (Pt.I) dated 26.09.2014 extending the due date to comply with the judgments of various high courts, such as Gujarat, Bombay, Andhra Pradesh and Madras.

High Courts have earlier held that As the due date for filing of the tax audit report was extended till November 30 (due to late Introduction of several changes in Form 3CD), it was logical to also extend the due date for filing of the I-T return also to November 30.

During hearing on the appeal on 22.09.2014 Honourable Gujarat High Court has directed the CBDT to extend the due date for filing of return of income to 30.11.2014 for A.Y. 2014-15 for all purposes, inter-alia, carry forward of losses, allowability of deductions under Sections 80-IA, 80-IB, 80-IC, 80-ID and other sections which requires return to be filed before due date. However, such extension has been granted subject to charge of interest under Section 234A (For delay in filing of Return of Income) for the period commencing from 01-10-2014 and up to the actual date of filling the return of income. Interest under section 234A will not be levied if taxpayer covered under tax audit provisions pays the tax on or before 30.09.2014 despite filing of return after 30.09.2014.

Anita Sumanth, advocate, representing the All India Federation of Tax Practitioners, and an individual petitioner, G Baskar, submitted to the Madras high court that the levy of interest under section 234A of the Income Tax Act,1961 is unjustified and against the provisions of the law. If the penalty was levied, the purpose of extending the due date of filing the I-T return itself was defeated. She submitted that the Gujarat high court order relating to levy of interest under section 234A was only a suggestion or a concession, it was not an interpretation of law and it was opposed to statutory provisions.

Based on the submissions, the Madras high court granted an interim stay on the levy of interest. It held, “I-T returns shall be accepted by tax authorities without insisting upon any payment of interest under section 234A.”


Income Tax Exemption Limit may rise from Rs. 2.5 to 3.5 or 4 Lakh in next Fin. Year - Arun Jaitley

NEW DELHI: Finance minister Arun Jaitley on Saturday said that he does not favour burdening the salaried and middle-class with more taxes but would go after the evaders in widening the net.

In fact, he would encourage more money being put in the pockets of tax payers that will lead to spending and collection of more indirect taxes.

"This widening of the tax base. What does it mean? I pay the same indirect tax as my attendant. Our volume of consumption may be different. So everybody is paying indirect taxes.

"And literally almost half your taxes are indirect taxes today. He pays excise, he pays customs duty, he pays service tax. Now as far as income tax is concerned, to bring those who evade tax is widening the tax net, I am all for it," the minister said in an interaction with PTI journalists at PTI headquarters.

He was replying to a question on whether his budget would look at widening the tax base to maximise revenue.

Jaitley, who will be presenting his first full fledged budget in February, said that in his last budget he had increased the tax exemption limit from Rs 2 lakh to Rs 2.5 lakh and would even raise it further if he had more money.

"After all what are we talking about Rs 2.5 lakh today means, taking all the deductions which we have given, somebody up to Rs 3.5-4 lakh does not have to pay tax. So we have reached the situation broadly.

"One earning Rs 35,000-40,000 per month, if the person puts some money for savings, (he) won't have to pay tax. But people falling in this bracket say that they don't save anything with salary of Rs 35,000-40,000 (with) the present cost of living, the transport cost, the fees of children and so on," Jaitley said.

Therefore, the minister said, he was against reducing the exemptions to widen the tax net. "Then that's not my approach," he added.

"So I am quite willing, if I had my way and I had more money in my pocket, I would like to expand. But today the revenue position is challenging. Last time I gave several concessions, which were actually beyond my means.

"But it's all fine to bring those who evade tax under the tax net. But to bring this vulnerable section into the tax net, that can't be the policy today. In fact if you put additional money in their pockets and allow them to spend, then I collect correspondingly more indirect taxes so I will rather encourage more economic activity."

On black money within the country, he said: "It is huge quantity and more easily traceable. Because you go to real estate, you go to land, you go to mining, you go to jewellery, you go to luxury goods, you will find the domestic (black money). You go to educational institutions, you will find it there. Therefore to trace out the buyers and the recipients is also easy."

Taxpayee can revise income tax return within the given time limit

If you suddenly realize that you missed reporting an income or deduction when you filed your income tax return (ITR) for the previous fiscal, you have the option of filing a revised return. To be able to do this, you should have filed the original return before the due date, 31 July

When to file a revised return If you discover any omission or any wrong statement in your original return, you can re-file ITR with modifications. For instance, you may have forgotten to claim tax benefit for a donation made to a charitable organization that qualifies for a deduction under section 80G, or to add the interest earned from one of your savings account to your total income. In such cases you can file a revised return stating the changes. As per section 139(5) of the Income-tax Act, 1961, the revised return can be filed before the expiry of one year from the end of the relevant assessment year or before the completion of assessment by the income tax department, whichever is earlier. So, for instance, if you have already filed your return for financial year 2013-14 (FY14) before the due date, 31 July 2014, but want to make modifications, you can file a revised return till 31 March 2016. However, if the income tax department has already completed the assessment of your return, then you cannot file a revised return. So, if you missed some information then file a revised return at the earliest to avoid interest or penalties.

How to file a revised return You can revise returns filed online and offline. However, an online return can be revised only online, and an offline one can be revised offline. For an online revision, you need the acknowledgement number and date of filing of the original return. Log on to the e-filing website of the income tax department (www.incometaxindiaefiling.gov.in), and open the Excel file wherein you originally filed the return. Enable the macros, and then select the option of revised return. Then select section 139(5) instead of 139(1). Now you will be able to make changes. Don’t forget to mention the acknowledgement number and date of the original return. Once you have made the alterations, click on compute tax, generate an XML file by validating each sheet, and then upload this file. Once the revised return is filed, download the revised ITR- V or acknowledgement and sign it. You need to send both the original as well as the revised ITR-V by ordinary post or Speed Post to the Central Processing Centre in Bangalore.

There is no restriction on the number of times you can file a revised return, provided it is done within the prescribed time limit. Once you file a revised return, the original or the earlier filed returns shall be deemed to be withdrawn and substituted by the most recent revised return.

Refund and Return of TDS.

Refund of TDS :
In case of excess deduction of tax at source, claim of refund of such excess TDS can be made by the deductor. The excess amount is refundable as per procedure laid down for refund of TDS vide Circular No.2/2011 dt. 27.4.11 (which supersedes the earlier circular no.285 dt 21.10.1980 on this subject).  The difference between the actual payment made by the deductor and the tax deductible at source, will be treated as the excess payment made.

In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.

In case, the deduction of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned. However, no claim of refund can be made after two years from the end of financial year in which tax was deductible at source. However, for refund claims pertaining to the period upto March 31, 2009 may be submitted to the assessing officer (TDS) upto 31.3.2012.

However, to avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:
The applicant deductor shall establish before the Assessing Officer that:

  • it is case of genuine error and that the error had occurred inadvertently;
  • that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and
  • that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim in excess of Rupees One Lakh and Rupees Ten Lakh respectively.

After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.

In view of provisions of section 200A of the Income-tax Act prescribing processing of statement of TDS and issue of refund with effect from 1-4-2010, this circular will be applicable for claim of refunds for the period upto 31-3-2010.

Return of TDS :
A return of TDS is a comprehensive statement containing details of salary paid and taxes deducted thereon from the employees along with other prescribed details. For deductions made prior to 01.04.2005 every deductor was required as per the provisions of Section 206 (read with Rule 36A and 37) to prepare and deliver an annual return, of tax deducted at source in form no. 24. Such a return was to be prepared and signed by the following - (a) the DDO or the prescribed officer in case of a government office; (b) the principal officer in the case of every company; (c) the managing partner/ partners in the case of a firm; (d) managing trustee in the case of trust; (e) Karta in the case of HUF; (f) prescribed person in the case of a local authority/public body/association. However w.e.f. 01.04.2006 there is no requirement to file annual returns and instead Quarterly statements of T.D.S. are to be submitted in form 24Q by the deductors specified above. The quarterly statement of the last quarter in form 24Q as amended by notification no. 119 dated 12.05.2006, S.O. 704(E), shall be treated as annual return of T.D.S.

Income Tax Exemption Slab could be raised further - Finance Minister Arun Jaitely Informs

“I have no intention of burdening the salaried and middle classes by imposing heavy taxes on them. At the same time, I’m not going to let tax evaders get away. I’m going to bring them into the tax-payers circle,” Minister of Finance, Arun Jaitley said.

“Salaried middle class people are paying more in direct taxes. If you ask me, I’d suggest that their direct tax burden should be reduced and if you could ensure that they get their full salaries, they will spend more. You can thus collect the money from them through indirect taxes,” he said.

During the press meet organized by the PTI, he said that one has to encourage measures that increase money circulation among taxpayers. “This will ensure free spending and therefore bring in more revenue through indirect taxes. Both my assistant and I pay indirect taxes. But, since there is a difference in the amount of money that we spend, the amount of tax we pay on it differs. A major portion of the tax paid by us in this country is indirect tax. Taxes like production tax, customs taxes and duties, and service taxes belong to this category.

“In the current financial year, minimum tax slab has been increased from Rs. 2 lakhs to Rs. 2.5 lakhs. If the revenue to the Government increases, I’m ready to further increase the slab. A person who earns 35,000 to 40,000 per month will not have to pay taxes if he/she chooses certain saving schemes. This is the current status. I don’t believe in the concept that by decreasing the tax slab, one can bring more and more people into the tax-paying class. My intention is not to increase the tax burden on the salaried and the middle-class,” he said.

All about Income Tax Refunds - FAQs

From which date the refund banker has been implemented?
The refund banker has been implemented from January 24, 2007.

In which cities the refund banker has been implemented ?
The refund banker facility is operational for non-corporate taxpayers assessed all over India.

Who will send the refund to me?
The State Bank of India (SBI) is the refund banker to the Income Tax Department (ITD). The Cash Management Product department of SBI (CMP SBI) processes the refunds under the refund banker scheme. Details of refunds are forwarded to CMP SBI by the ITD. CMP SBI processes the refunds and sends the refund intimation to the taxpayer.

How will the refund be sent to me?
Refunds are generated in two modes i.e., ECS and paper . If the taxpayer has selected mode of refund as ECS (direct credit in the bank account of the taxpayer) at the time of submission of income return the taxpayer’s bank A/c (at least 10 digits ) and MICR code of bank branch and communication address are mandatory .

For taxpayers who have not opted for ECS refund will be disbursed by cheque or demand draft.

For generation of refund through paper cheque bank account no, correct address is mandatory.

How can I know the status of my refund?
The taxpayer can track the status of its refund from the Departmental Website www.incometaxindia.gov.in / NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.

Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked.

Status of the refund can also be tracked by contacting the help desk of SBI's at toll free number: 18004259760 or email at: - .

If I have shifted my residence whom should I contact for updating my correspondence address for receipt of refund?
The tax payer should contact its Assessing Officer and inform about the change in the correspondence address.

If my bank account has been closed how will I get refund credit into the account?
In case of change or updation in the bank account number the taxpayer should provide the correct account number along with the MICR code where credit is to be effected to the Assessing Officer.

Whom do I contact if the refund dispatched has not been received?
The tax payer can contact its local post office with the speed post ref no displayed at the NSDL-TIN website

I have received the physical ECS refund advice and status of refund is “paid” on website of refund status track but my account has not been credited. Whom do I contact?
In case credit is not effected in the taxpayer account through ECS but the refund advice has been received by the taxpayer AND the status shown is “paid”- in that case, the tax payer should contact his bank or SBI. You should contact SBI at the following address.

Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai - 400 093.
Phone Number: 18004259760 or email at 

I have neither received the physical ECS refund advice and status of refund is “unpaid” on website track. Whom do I contact?
The tax payer should provide the correct account number and MICR code to concerned Assessing officer, where credit is to be effected. The Assessing Officer will inform SBI to send a fresh refund cheque to the taxpayer.

If the date of encashing the refund cheque expires, whom should I contact?
The tax payer should contact their Assessing Officer as well as CMP SBI at the below address:

Cash Management Product (CMP)
State Bank of India
SBIFAST
31, Mahal Industrial Estate
Off Mahakali Caves Road
Andheri (East)
Mumbai - 400 093.
Phone Number: 18004259760 or email at 

How do I rectify any mistakes in the name, assessment year, PAN, account number printed on the refund cheque delivered to me?
In case of any mistakes on the refund cheque delivered to you, the following should be done:

  1. Send the original refund cheque to CMP, State Bank of India at SBIFAST 31, Mahal Industrial Estate, Off Mahakali Caves Road, Andheri East, Mumbai - 400 093, Phone Number: 18004259760, along with a letter informing the mistakes on the refund cheque.
  2. Send a copy of the letter along with a copy of the refund cheque to your Assessing Officer.
  3. Retain a copy of the letter and refund cheque with you.

If somebody else’s refund cheque / advice is delivered to me what should I do?
You should contact SBI at the following address and return the refund cheque / advice.

Cash Management Product
State Bank of India
SBIFAST
31, Mahal Industrial Estate,
Off Mahakali Caves Road,
Andheri (East)
Mumbai - 400 093
Phone Number: 18004259760 or email at 

Is there any method available to know whether the refund record has been generated for the taxpayer?
The taxpayer can track the status of its refund from the NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.

Refund status can be tracked by entering the PAN and Assessment Year for which refund is to be tracked.

Status of the refund can also be tracked by contacting the help desk of SBI at 080-26599760.

Whom do I contact for queries related to payment of refund which has been processed by ITD?
For any payment related query the taxpayer should contact SBI at 18004259760 or email at .

Whom should I contact for refund related queries?
For any refund related query the tax payer should contact Aaykar Sampark Kendra at 0124 2438000 or email at .

For refund related query/ or any modification in refund record relating to Return processed at CPC Bangalore, the CPC may be contacted by the taxpayer on 1-8004252229 or 080-43456700.

All about TDS on Rent u/s. 194-I - FAQs

1. What are the provisions relating to TDS on rent? From which date same are applicable?

   As per the Finance Act, 1994 the provisions of TDS on rent have been introduced w.e.f. 1.6.1994. The salient feature of Sec. 194-I are as under:-

i)   The provisions are applicable only in cases where the person making the payment of rent is an individual or HUF who is required to get his accounts audited u/s 44AB in the immediately preceding financial year (w.e.f. 1.6.2002) or any other person responsible for paying to a resident any income by way of rent. Prior to 1.6.2002 no individual or HUF was liable to deduct TDS from rent.

ii)  The TDS is required to be deducted in case the rent paid or payable to a particular person during a financial year exceeds Rs. 1,80,000 w.e.f.1.7.2010 (upto 30.6.2010 the limit was Rs. 1,20,000).

iii) A facility has also been provided to obtain a certificate from the Assessing Officer for deduction of income-tax at a lower rate or for no deduction of income-tax in appropriate cases by making application in From No.13.

iv)  For the purpose of this section rent means any payment by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or building or factory building together with furniture, fixture, fittings and land appurtenant thereto. It will not be relevant whether the payee is the owner of the building or not?

     W.e.f. asst. year 2007-08, the Taxation Laws (Amendment) Act, 2006 have enlarged the scope of rent for the purpose of Sec. 194I, so as to include machinery, plant and equipment, whether rented together with building or separately, irrespective of the fact whether they are owned by the payee or not?

v)   The rates of TDS on rent are as under:

Particulars
Rate upto 30.09.09
Rate w.e.f. 01.10.09
Use of any land, building, furniture or fittings
15% (when payee is individual or HUF) 20% in other cases.
10% for all assessees
Use of plant, machinery or equipment
10% (from 1.6.07 to 30.9.09) prior to 1.6.07 the rate was same as rent of land and building
2% for all assessees

a. At the rate specified under the Income Tax Act; or
b. At the rates in force; or
c. At the rate of 20%.

2. Will tax be deducted from service tax included in rent?

   Service tax paid by the tenant does not partake the nature of income of landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore tax deduction at source (TDS) under Sec. 194-I of the Income-tax Act would be required to be made on the amount of rent paid/payable without including service tax.

   Further No TDS on service Tax: As per circular 01/2014 dated 13.01.2014 TDS is not applicable on service tax part if service tax is shown separately.

3. What does the “rent” mean for the purpose of Sec. 194-I?

   “Rent” means any payment, by whatever named called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together)any,-

   a. Land; or
   b. Building (including factory building); or
   c. Land appurtenant to a building (including factory building); or
   d. Machinery; or
   e. Plant; or
   f. Equipment; or
   g. Furniture; or
   h. Fittings,

whether or not any or all of the above are owned by the payee.

In other words, besides tax on land and building, tax shall now also be deductible for leasing out or hiring of machinery, plant, equipment, furniture and fittings whether given separately or together. Further, it shall be deductible whether or not any or all of the above are owned by the payee?

4. What are the circumstances under which no tax is to be deducted at source on rent as defined under Sec. 194-I ?

   No tax is required to be deducted at source under this section if the following conditions are satisfied:

   A) Where aggregate amount of rent does not exceed Rs. 180,000:- No tax is to be deducted if the aggregate amount of rent in the previous year does not exceed Rs. 180,000.

   B) Rent paid to the Government and certain entities:- No tax at source needs to be deducted from payments by way of rent made to Government and entities whose income is exempt from income-tax under clauses (20) and (20A) of Sec.10 of the Income tax Act.

   C) Certain entities required to file return under Sec. 139(4A) or 139(4C):- As per rule 28AB certain entities who are required to file return of income under Sec. 139(4A) or 139(4C) may apply in Form No. 13 for no deduction of tax at source provided certain conditions are satisfied.

   D) Certain entities whose income is unconditionally exempt under Sec. 10:- In case of certain entities whose income is unconditionally exempt under Sec. 10 and who source : www.trpscheme.com (As amended by Finance Act, 2013) are statutorily not required to file return under Sec. 139 there will be no requirement for TDS, since their income is any way exempt.

5. Where is the limit of Rs. 180,000 for non-deduction of tax at source applicable in case of each co-owner?

   Where the share of each co-owner in the property is definite and ascertainable, the limit of Rs. 180,000 will be applicable to each co-owner separately.

6. What are the provisions regarding low deduction or no deduction of tax on rent under Sec. 194-I ?

   Any person to whom rent is payable may make an application in Form No.13 to the Assessing Officer and obtain such certificate from him, as may be appropriate, authorizing the payer not to deduct tax or to deduct tax at lower rate.

   As per Sec. 206AA(4), w.e.f. 1-4-2010, no certificate under Sec. 197 for deduction of tax at Nil rate or lower rate shall be granted, unless the application made under that section contains the Permanent Account Number of the applicant.

7. What is method of taking credit of TDS on advance rent ?

   On advance rent pertaining to more than one financial year, the tax is deducted at source in the year of receipt of advance rent. The credit for TDS shall be allowed to the assessee in the same proportion in which such income from rent is offered for taxation for different assessment years, based on the single TDS certificate furnished for the entire advance rent.

   However, if the rent agreement gets terminated in a subsequent year or rented property is transferred and the balance advance is refunded to the transferee or the tenant, as the case may be, the credit for entire balance of TDS which has not been given credit, shall be allowed in the year of termination.

CPC (TDS) advice to Deductor who have not filed yet Q2 for Fin. Year 2014-15

CPC (TDS) has issued a communication to all deductors who have filed TDS Statements Q1 for Fin. Year 2014-15 i.e. Asstt. Year 2015-15 but, not filed yet for Q2 as of November 1, 2014 which is as under:

As per the records of the Centralized Processing Cell (TDS), you have filed TDS Statements for Q1, FY 2014-15, however, no TDS Statements have been filed for Quarter 2 as of November 1, 2014.

If you are not required to submit the relevant statement, you are requested to submit a declaration by taking appropriate action as suggested under "Action to be taken" in this communication. Otherwise, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

1. Mandatory filing of TDS Statements:
Please refer to the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:
Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:
  • Statement of deduction of tax under section 192 in Form No. 24Q;
  • Statement of deduction of tax under sections 193 to 196D in -
  • Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
  • Form No. 26Q in respect of all other deductees.
It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

2. Implications of Non/ Late filing of TDS Statements:
For Deductors:
In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the Act, which reads as under:
Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.
For Tax payers:

  • Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees. They, therefore, will not be able to claim the credit for tax already deducted from the payments made to them. Please note that TDS Certificates will not be available until the TDS Statements are duly filed

3. Actions to be taken:

Please file the relevant TDS Statement without any further delay.

  • If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to "Statements/ Payments" menu and submit details under "Declaration for Non-Filing of Statements"
  • Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.

For any assistance, you can write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM

Free Download e-Book on The Companies Act, 2013 and Rules

This E-Book is based on the Companies Act 2013, Rules, Circulars, Notifications as notified by the Ministry of Corporate Affairs. The Institute of Chartered Accountants of India does not own the responsibility for any error or omission. The users are advised to cross check with the original Act, Rules, Circulars, Notifications, Amendments before acting upon this E- Book.

This e-Book is published by The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delh-110 002.

The Companies Act 2013 got assent from the President of India on 29th August, 2013.The Act comprises of 29 Chapters, 470 Sections with 7 Schedules. It is substantively a law based on Rules. 

The changing national and international economic environment, exponential growth of the Indian economy and changes in the stakeholders‘ expectations necessitated for a need for a new Companies Law.

The Ministry of Corporate Affairs has notified 98 sections of the Companies Act 2013 and made applicable from 12th September, 2013 and Section 135 and Schedule VII of the Companies Act alongwith the Rules pertaining to that section were notified in February, 2014. 

In addition to that, 183 sections and 13 sub- sections of the already notified sections and rest of the schedules of the Companies Act, 2013 have been notified by the Ministry on 26th March, 2014 and are made applicable from 1st April, 2014. As of now a total of 282 sections stand notified.

Also, the Rules for 19 Chapters of the Companies Act have been notified by the Ministry of Corporate Affairs.

This E- Book contains all the sections and schedules of the Companies Act 2013 as well as the Rules notified so far. 

The Forms for the Rules have been given in this E- Book for Chapter- IX and Chapter- X. For easy reference of the readers, a Table has been included which contains provisions of Companies Act 2013 as notified up to date. Further, a Table has been provided which shows Chapter-wise Sections of the Act which are not yet notified as well as the Rules for the Chapters which are notified/not notified. Amendments made so far by MCA in the Schedules and Rules have been incorporated in their respective places.Go to Index Page 22 List of Sections of Companies Act 2013 that have been incorporated in their respective places.

Download The Companies Act, 2013 and Rules e-Book (Click Here)

HC stays Levy of Interest U/s. 234A on I-T returns filed till extended due date of 30.11.2014

Due Date for filing of return of Income for Assessment Year 2014-15 Extended from 30th September, 2014 to 30th November, 2014 in Specified Cases

The CBDT had issued the notification no. F.No.153/53/2014-TPL (Pt.I) dated 26.09.2014 extending the due date to comply with the judgments of various high courts, such as Gujarat, Bombay, Andhra Pradesh and Madras.

High Courts have earlier held that As the due date for filing of the tax audit report was extended till November 30 (due to late Introduction of several changes in Form 3CD), it was logical to also extend the due date for filing of the I-T return also to November 30.

During hearing on the appeal on 22.09.2014 Honourable Gujarat High Court has directed the CBDT to extend the due date for filing of return of income to 30.11.2014 for A.Y. 2014-15 for all purposes, inter-alia, carry forward of losses, allowability of deductions under Sections 80-IA, 80-IB, 80-IC, 80-ID and other sections which requires return to be filed before due date. However, such extension has been granted subject to charge of interest under Section 234A (For delay in filing of Return of Income) for the period commencing from 01-10-2014 and up to the actual date of filling the return of income. Interest under section 234A will not be levied if taxpayer covered under tax audit provisions pays the tax on or before 30.09.2014 despite filing of return after 30.09.2014.

Anita Sumanth, advocate, representing the All India Federation of Tax Practitioners, and an individual petitioner, G Baskar, submitted to the Madras high court that the levy of interest under section 234A of the Income Tax Act,1961 is unjustified and against the provisions of the law. If the penalty was levied, the purpose of extending the due date of filing the I-T return itself was defeated. She submitted that the Gujarat high court order relating to levy of interest under section 234A was only a suggestion or a concession, it was not an interpretation of law and it was opposed to statutory provisions.

Based on the submissions, the Madras high court granted an interim stay on the levy of interest. It held, “I-T returns shall be accepted by tax authorities without insisting upon any payment of interest under section 234A.”

Source: www.tdstaxindia.com

Solution of message "Application is down for planned maintenance", when any Taxpayee User login to TRACES.

Solution when any Taxpayee login to TRACES, and get the message i.e. "Application is down for planned maintenance". which is as under :

The cookies on your browser may be using the cached data to display this message and you may need to clear the cookies and reload the website. Steps to clear cookies are given below. You can clear cookies by pressing 'Ctrl+Shift+Del' (Control+Shift+Delete) keys on your keyboard together.

Step-by-step instructions for different browsers are given below:

Internet Explorer

  • Click on 'Tools' option from your browser toolbar
  • Go to 'Internet Options'
  • Under 'General' Tab, 'Browsing History' section, click on 'Delete'
  • In the dialog box that appears, select 'Cookies and Website Data' and click on 'Delete'

Firefox

  • Click on 'Tools' option from your browser toolbar
  • Click on 'Clear Recent History' option
  • In the dialog box that appears, there is a 'Time Range' dropdown. Select 'Everything'
  • Click on 'Clear Now' to delete the cookies

Chrome

  • Click the Chrome menu (the icon with three vertical lines) on the browser toolbar
  • Select 'Tools'
  • Select 'Clear Browsing Data'
  • In the dialog box that appears, select checkboxes for the types of information that you want to remove
  • Use the menu at the top to select the amount of data that you want to delete. Select beginning of time to delete everything
  • Click 'Clear Browsing Data'

Retired pensioner Central Government Employee re-appointment Procedure on Commercial basis.

Retired/Pensioner's Government Employee re-appointment on commercial basis within a year after date of retirement are required to seek permission from the Government. The Central Government Retired Employee can apply for permission to re-appointment in Form 25 of CCS(Pension) Rules which is as under:

No. 27012/3/2014-Estt (A)
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training)

North Block, New Delhi the 19th November, 2014

OFFICE MEMORANDUM

Subject: Procedure for grant of permission to the pensioners for commercial employment after retirement — revision of Form 25.

The undersigned is directed to refer to Rule 10 of CCS (Pension) Rules, 1972 and to say that retired Government servants proposing to take up commercial employment within a year of retirement are required to seek permission from the Government. They are required to apply for permission in Form 25 of CCS(Pension) Rules. Form 25 prescribed under the said rule has since been reviewed with a view to simplify the procedure. The revised Form 25 is enclosed.

2. The revised form incorporates the conditions prescribed in clauses (b) to (f) of sub-Rule 3 of Rule 10. There is now no requirement for obtaining an affidavit as prescribed in Para 2(d) of this Departments’ 0M No. 27012/5/2000-Estt.(A) dated 5th December, 2006.

3. All Ministries/Departments are requested to bring this to the notice of all concerned.

4. Formal Notification of Rules will follow.

Sd/-
(G. Jayanthi)
Director

Download Re-Appointment Application Form (Click Here)

Circular for Approval of Long Term Bonds and Rate of Interest for the purpose of Sec. 194 LC of IT Act.

CBDT has issued a circular No. 15/2014 dated 17th, Oct., 2014 regarding Approval of long term bonds and rate of interest for the purpose of Section 194LC of the Income-tax Act, 1961 which is as under :

CIRCULARNO.-15/2014
F.No.133/50/2014-TPL 
Government of India 
Ministry of Finance 
Department of Revenue 
(Central Board of Direct Taxes) 
--------- 
New Delhi, the 17th October, 2014 

Sub: Approval of long term bonds and rate of interest for the purpose of Section 194LC of the Income-tax Act, 1961-regarding. 
… 

Section 194LC of the 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 term 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 had decided to grant approval to all borrowings by way of loan agreement and long term infrastructure bonds provided they satisfy certain conditions . The approval and the conditions were detailed in the CBDT Circular No.7 of 2012 dated 21st September, 2012. 

2. The Finance (No. 2) Act, 2014 has amended section 194LC with effect from the 1st Day of October, 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 Section194LC which was earlier 01/07/2015 has been extended to borrowings made before the 1st day of July, 2017. 

3. 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. 

4. 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 Central Board of Direct Taxes [with the approval of t h e Central Government] conveys the approval of the Central Government for the purposes of section194LC in respect of the issue of long term bond including long term infrastructure bond by Indian companies which satisfy the following conditions:- 
a. The bond issue is at any time on or after 1st day of October, 2014 but before the 1st day of July, 2017. 
b. 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. 
c. The bond issue should have a loan Registration Number issued by the Reserve Bank of India (RBI). 
d. The term “longterm” means that the bond to be issued should have original maturity term of three years or more. 

5. Further, the Central Government has also approved the interest rate for the purpose of section194LC in respect of borrowing by way of issue of long term bond including long term infrastructure bond as any rate of interest which is within the All-in-cost ceilings specified by the RBI under ECB regulations as is applicable to the borrowing through a long term bond issue having regard to the tenure thereof. 

6. 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 section194LC. 

7. 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 agreement, shall be valid for the borrowings made on or before 30/06/2017 instead of 30/06/2015 as mentioned in the said Circular. 

(AshishKumar) 
Director(TaxPolicy &Legislation) 

Copyto:-
1. PS to FM/OSD to FM/OSD to MoS(R).
2. PS to Secretary(Revenue).
3. The Chairman, Members and all other officers in CBDT of the rank of Under Secretary and above.
4. All P r . Chief Commissioners/ Pr.Director General of Income-tax–with a request to circulate amongst all officers in their regions/charges.
5. Pr.DGIT(Systems)/ Pr.DGIT (Vigilance)/ Pr.DGIT (Admn.)/ Pr.DG (NADT)/Pr. DGIT(L&R).
6. Media Co-ordinator and Official spokesperson of CBDT.
7. DIT(IT)/DIT(RSP&PR)/DIT(Audit)/DIT(Vig.)/DIT(Systems)/ DIT(O&MS)/DIT(Spl.Inv.).
8. The Comptroller and Auditor General of India (30copies).
9. Joint Secretary and Legal Advisor, Ministry of Law and Justice, New Delhi.
10. The Institute of Chartered Accountants of India, IP Estate, New Delhi.
11. All Chambers of Commerce as per usual mailing list.

(Ashish Kumar) 
Director (TaxPolicy& Legislation) 

Important message for employees retiring within the next three months

PRE - RETIREMENT COUNSELLING WORKSHOP

Important message for employees retiring within the next three months

The Department of Pension and Pensioners Welfare is organizing a Pre-retirement counselling workshop on 25th, November, 2014 from 2.00 PM to 5.00 PM in the Conference Room of Department of Administrative Reforms, 5th Floor, Sardar Patel Bhawan, New Delhi.

The employees of Government of India retiring in the next 6 months are hereby informed that they may attend the workshop. Confirmation with Name, Ministry & Phone No. may be sent at the email address mkumar.mol@nic.in

sd/-
US (Sankalp)
Department of Pension & Pensioners' Welfare

Download Important Message for Employees (Click Here)

Central Government invites suggestions from pensioners, Pensioners Associations, Ministries Departments, Banks etc.

Central Government has issued a notice to invite suggestions for promoting welfare of Pensioners’/Family Pensioners drawing pension / family pension, stakeholders, pensioners, Pensioners Associations/Ministries/ Departments/Banks etc. from Central Government.  The Office Notice issued by the Department of Pension and Pensioners Welfare on 18th Nov., 2014, specially for improving the functioning of the Department and welfare of pensioners and also simplifying rules and procedures which is as under :

No.A/5/2014-P&PW(D)
Government of India
Ministry of Personnel, Public Grievances & Pensions

(Department of Pension & Pensioners’ Welfare)

3rd Floor, Lok Nayak Bhawan
New Delhi-110 003.
Dated the 18th November, 2014

NOTICE

Subject: Suggestion for promoting welfare of Pensioners’/Family Pensioners drawing pension / family pension from Central Government.

In accordance with Government of India “Allocation of Business” Rules, Department of Pension & Pensioners’ Welfare is responsible for policy and coordination including those relating to welfare of Central Government pensioners.

2. Government continues to take various measures for welfare of pensioners and for simplifying rules and procedures. With a view to involve various stakeholders viz pensioners, Pensioners Associations/ Ministries/ Departments/ Banks etc. in the process, it has been decided to invite suggestions in this regard from all stakeholders.

3. It is requested that suitable suggestions, specially for improving the functioning of the Department may be sent to Ms. Deepa Anand, Under Secretary, DOP &PW, Lok Nayak Bhawan, Khan Market, New Delhi-110003 ( e-mail: deepa.anand@nic.in/011-24644636 ) by 15.12.2014.

sd/-
(Harjit Singh)
Deputy Secretary

Download notice regarding Suggestion for promoting welfare of Pensioners’/Family Pensioners drawing pension / family pension from Central Government (Click Here)

Deadline for sending the Income Tax Return Verification (ITR-V) for 2013-14 is 30th Nov., 2014

November 30 is the deadline for sending the income-tax returns verification (ITR-V) for 2013-14, as it will be four months or 120 days since July 31, the deadline to file IT returns. And if you don't send your ITR-V till then, your returns will be considered not filed. ITR-V is an acknowledgement of the returns filed.

The I-T department allows you to send ITR-V in 120 days of filing your returns online. If not done, your registration with the department is cancelled.

Around five per cent of tax assesses do not file their ITR-V, says Sudhir Kaushik, co-founder and chief financial officer, Taxspanner.com. "Many don't know they need to send the ITR-V to the tax department's Bengaluru office after filing returns online," he adds. Citizens earning a salary of more than Rs 5 lakh a year need to file returns online.

Sometimes, the department extends the 120-day deadline. Those who had e-filed returns in 2010 were allowed to send acknowledgements till July 2011. This year also, the department started a campaign reminding taxpayers who had filed their returns without digital signatures and had not sent the signed copy of the ITR-V. The department extended the deadline to October 31.

Not mailing ITR-V on time has many negatives. You might be fined Rs 5,000 a return for failing to file returns by the end of the assessment year.

You have a two-year window to file belated returns, failing which there is no way to do so, says Nagaraju P S, director of etaxmentor.com. "One can file income tax returns by (a) filing it on time at the end of each financial year (b) till two years after the financial year or (c) against a notice from the department if the two-year window expires."

But if there are any errors in the belated returns, you can’t revise. "If you do not file returns on time, you cannot carry forward capital losses incurred, if any, in a financial year to be adjusted against capital gains made in the subsequent years," says Kaushik. The good part: Loss from sale of house property can be carried forward even if returns are not filed on time.

If you are liable for a refund, it stands a good chance of being delayed, as you've filed returns after the due date.

Nagaraju says you should sign the ITR-V before posting it. Acknowledgments signed in black ink are considered scanned copies or photocopies of ITR-V and tend to get rejected. Folding the sheet leads to print ink getting erased on the creases. The department informs you about the rejection by post, which might not reach you in time to act within 120 days.

Clarification on Revised Settlment Scheme - Assessment deemed to be concluded when order is made and not when served.

CBDT has issued a circular regarding Settlement Application - Assessment deemed to be concluded when order is made and not when served on 17-11-2014 which is as under :

Chapter XIX-A of the Income-tax Act, 1961 contains provisions relating to settlement of cases by the Income-tax Settlement Commission (ITSC). The provisions contained in the said chapter were amended by Finance Act, 2007 and a Revised Settlement Scheme was put in place. Explanatory Circular No. 3/2008 dated 12.03.2008 issued by CBDT vide para 61 (comprising sub paras 61.1 to 61.17) deals with Revised Settlement Scheme. 

2. Para 61.2 of Circular No.3 of 2008 reads:-
 “61.2 under the existing provisions, an assessee may make an application to the Commission at any stage of the proceedings in his case pending before any Income-tax Authorities. After 31st May, 2007, an assessee can make an application to the Commission only during the pendency of the proceedings before the Assessing Officer. It is further clarified that (a) since intimation under section 143(1) is not an assessment order, there will be no bar in filing an application for settlement subsequent to receipt of an intimation under section 143(1). It is not material whether time-limit for issue of notice under section 143(2) has expired or not; (b) the assessment shall be deemed to have been completed only on the date of service of assessment order to the applicant”. 

3. It has been inadvertently stated in para 61.2 of Circular No.3 of 2008 that the assessment shall be deemed to have been completed only on the date of service of assessment order to the applicant. This statement is not inconsonance with the provisions contained in Explanation to clause (b) of section 245A of the Income-tax Act which, inter alia, provides that a proceeding for assessment of any assessment year shall be deemed to have concluded on the date on which the assessment is made.

4. In view of the above, para 61.2 of Circular No.3 of 2008 is replaced with the following with effect from the 1st day of June, 2007:-
“61.2 Under the existing provisions, an assessee may make an application to the Commission at any stage of the proceedings in his case pending before any Income-tax Authorities. After 31st May, 2007, an assessee can make an application to the Commission only during the pendency of the proceedings before the Assessing Officer. It is further clarified that (a) since intimation under section 143(1) is not an assessment order, there will be no bar in filing an application for settlement subsequent to receipt of an intimation under section 143(1). It is not material whether time-limit for issue of notice under section 143(2) has expired or not; (b) the assessment shall be deemed to have been completed on the date on which the assessment order is passed.”