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Additional D. A. will be hike by 6% from January, 2015 i.e. 113% is Confirmed.

As per the recently issued Press Release of Consumer Price Index for Industrial Workers for December 2014 on 30th January, 2015 the All-India CPI-IW for December, 2014 remained stationary at 253 (two hundred and fifty three). On 1-month percentage change, it remained static between November, 2014 and December, 2014 when compared with the decrease of (-) 1.65 per cent between the same two months a year ago.

From last 5 Months  AICPIN Index value by Consumer Price Index Numbers for Industrial Workers of India is stand at the point "253" i.e. from August-14 to December-14.  As per the Index AICPIN Value the Additional Dearness Allowance will be hike by 6% from January-2015 i.e. 113%. This is 1% less than the previous hike of additional Dearness Allowance from July-2014. The total Additional Dearness Allowance from Jan., 2015 will become 113% confirmed.

How Dearness Allowance is calculated ?

Month Year /  CPI(IW) BY 2001=100 / Total / Average / App. DA / DA%

First is the month and year. Then the CPI (IW) Base Year 2001=100 and the relevant data. In the next column, you have the sum total of all the 12 months, i.e., the total of the declared AIPCIN numbers for the past 12 months. Next comes the division of the sum total by 12.

The next step is the most crucial one. You will have to find out by how much it exceeds 115.76. You will have to calculate the excess as percentage of 115.76.

(12 Monthly Average) – 115.76
-------------------------------------- X  100 = Percentage increase in prices
            115.76

Guidelines for Preparation of Budget 2015-16.

Recently Finance Ministry, Ministry of Expenditure has issued an Office Memorandum regarding guidelines for preparation of outcome Budget 2015-16.  The Outcome Budget 2015-16 is intended to cover the entire Central Plan Outlay (Gross Support and Internal and Extra Budgetary Resources) and connected Non-Plan provisions that are amenable to Outcome Budgeting.  In general, a Ministry/Department may exclude "Assistance to State Plan"  component of its Plan Budget from the scope of Outcome Budget.  The following Demand/Appropriations are specially exempted from the purview of outcome budgeting.

The outcome Budgets have become an integral part of the budgeting process since 2005-06.  OUTCOME BUDGET 2015-16 will broadly indicate the physical dimensions of the financial budgets as also the actual physical performance in 2013-14 and the performance till December for the year 2014-2015 and the targeted performance during 2015-16.

Scope of coverage in Outcome Budget 2015-16.

The Outcome Budget documents will be prepared separately by each Ministry/Department in respect of all Demands/Appropriations controlled by them, except those exempted from this requirement and to the extent disclosures are not barred on considerations of security etc.  A list of exempted Demands/Appropriations is enclosed at Annexure-I.  However, even the Ministries/Departments and other authorities "exempted" from preparation of Outcome Budget and planing it in public domain are requested to carry out this exercise for internal use and voluntarily decided to place it in public domain fully or partially.

As far as feasible, sub-targets for coverage of women and SC/ST beneficiaries under various development schemes and the schemes for the benefit of the North-Eastern Region should be separately indicated.

Board Format of Outcome Budget 2015-16:


The Outcome Budget 2015-16 will be prepared on the basis of Budget 2015-16 in the form of a documents, separate for each Ministry/Department, broadly consisting of the chapters detailed below:

Chapter-I   : Introduction
Chapter-II  : Statement of Budget Estimate
Chapter-III : Reform measures and policy initiative
Chapter-IV  : Review of past performance
Chapter-V   : Financial Review
Chapter-VI  : Review of performance of Statutory and Autonomous Bodies.

Download Guidelines for Budget 2015-16 (Click Here)

Interest u/s. 234B can't be charged on some Dis-allownaces by A.O.

Assessing Officer has not any right to charge interest u/s. 234B on non deduction of TDS u/s. 194C, 194A, 194H, 194I, 194J and 195.

The dis-allowance on account of non deduction of tax at source is now very common form of dis-allowance by the assessing officer. Such dis-allowance is done u/s 40(a)(i) and 40(a)(ia)  of the Income Tax Act. Very common dis-allowances for non deductions of tax at source  are as under :
  • Non deduction on contractual works (Section 194C )
  • Non deduction of tax on interest (194A)
  • Non deduction of tax on commission (194H)
  • Non deduction of tax on rent  (194 I)
  • Non deduction of tax on professional and technical fee (194J)
  • Non deduction of tax on payments to Non Residents.(195)
The Assessing Officer (A.O.) computes on increased total income and charges interest u/s 234B. Thus, interest u/s 234B is charged also on the tax on dis-allowance u/s 40(a)(i) which is included in total income.

Source: www.taxbymanish.blogspot.com

Relief of "Sukanya Samriddhi Account" under section 80C w.e.f. 21.01.2015

The Hon'ble Prime Minister has been declared on 20-01-2015 that a new Investment Scheme i.e. "Sukanya Samriddhi Account" during Asstt. Year 2015-16 and the Interest Rate on Investment is 9.1%.  The scheme of "Sukanya Samriddhi Account" is specially for Girl Child which announcement by Finance Minister in his Budget Speech 2014-15.

Apart from this the Government has decided on 21.01.2015 that the "Sukanya Samriddhi Account" deductions relief to taxpayee under section 80C of the Income Tax Act in respect of Insurance Premium etc. shall come into force w.e.f. the date of this publication in official gazette.  Details of this notification is as under : 
SECTION 80C OF THE INCOME-TAX ACT, 1961 - DEDUCTIONS - IN RESPECT OF INSURANCE PREMIUM, ETC. - NOTIFIED PLAN UNDER SECTION 80C(2)(viii)
NOTIFICATION NO. 9/2015 [F.NO.178/3/2015-ITA-1], DATED 21-1-2015
In exercise of the powers conferred by clause (viii) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the 'Sukanya Samriddhi Account' for the purposes of the said clause.
2. This notification shall come into force with effect from the date of its publication in the Official Gazette.

Exeptions to Professional or Notified Associations under Section 10(23A) for Asstt. Year 2013-14 to 2015-16.

Recently CBDT has issued a notification regarding exemptions to Professional or Notified Associations under section 10(23A) of the Income Tax Act, 1961 for Asstt. Year 2013-14 to 2015-16.  The details of the notification is as under :
SECTION 10(23A) OF THE INCOME-TAX ACT, 1961 - EXEMPTIONS - PROFESSIONAL ASSOCIATIONS - NOTIFIED ASSOCIATION
NOTIFICATION NO.4/2015 [F.NO. 196/36/2013-ITA.I], DATED 20-1-2015
In exercise of the powers conferred by clause (23A) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby approves the "Indian National Group of the International Association for Bridge and Structural Engineering, IDA Building, Jamnagar House, Shahjahan Road, New Delhi-110011" for the purpose of the said clause for the Assessment Years 2013-14 to 2015-16 subject to the following conditions, namely:—
(i) the assessee shall apply its income, or accumulate the income for application, in accordance with the provisions of the said clause (23A), solely to the objects for which it is established;
(ii) the assessee shall not be eligible for exemption under the said clause (23A) in respect of income chargeable under the head "Income from House Property" or any income received for rendering any specified services or income by way of interest or dividends derived from its investment.

Limit and Qualifying Investment for Deductions under Section 80C for Asstt. Year 2015-16

Under this section, you can invest a maximum of Rs 1.50 lakh (1 Lakh upto AY 2014-15) and if you are in the highest tax bracket of 30%, you save a tax of Rs 45000. The various investment options under this section include:

Public Provident Fund (PPF):  Interest earned is fully exempt from tax without any limit. Annual contributions qualify for tax rebate under Section 80C of income tax. Contributions to PPF accounts of the spouse and children are also eligible for tax deduction. Balance in PPF account is not subject to attachment under any order or decree of court. But, Income Tax authorities can attach the account for recovering tax dues. The highest amount that can be deposited is 1,50,000. Tax bracket for PPF is EEE (i.e. Exempt,Exempt,Exempt). So contribution is exempted under 80C, Interest earned is tax exempted and withdrawal is also tax exempted.
 
One can withdraw the investment made in 1st year only in 7th year. However, loan against investment is available from 3rd financial year. If liquidity is not an issue, you should invest as much as you can in this scheme before looking for other fixed income investment options.

Life Insurance Premiums: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.

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. Equity Linked Saving Schemes (ELSS) of mutual funds are diversified equity funds that have a lock-in period of three years and provide tax benefit. Since a major portion of the corpus is invested in equities / equity stock markets , the earning potential is higher (though at a higher risk) as compared to other tax saving investments. Investors can invest up to 1,50,000 in an ELSS fund and deduct the investment from their taxable income u/s 80C of Income Tax Act, thereby effectively reducing their tax liability. Long-term capital gains and dividends received on these investments are tax-free in the hands of the investor as per the current tax laws.

Provident Fund (PF) & Voluntary Provident Fund (VPF) :
PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF).

Home Loan Principal Repayment: 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. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.

Stamp Duty and Registration Charges for a home: 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.

National Savings Certificate (NSC): National Savings Certificates popularly known as NSC is a saving bond , primarily used for small saving and income tax saving investment in India, part of the Postal savings system of Indian Postal Service (India Post). These can be purchased from a post office by an adult in his own name or in the name of a minor, a minor, a trust, two adults jointly.These are issued for five and ten year maturity and can be pledged to banks for availing loans.  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.

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.

Pension Funds – 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. 1.50 Lakh.This also means that your investment in pension funds upto Rs. 1.50 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. 1.50 Lakh.

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.

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. An individual who has attained the age of 60 years or above on the date of opening of a/c or an individual who attained the age of 55 years or more and who has retired under VRS/SPL. VRS, can open an account individually or jointly with spouse. A retired personnel of Defence Services (excluding Civil Defence Employees) can subscribe to the scheme irrespective of the age limit subject to fulfilment of specificed conditions. Account can be closed after expiry of 5 years from the date of opening of account and account can be extended for next 3 years. Premature closure is permissible after one year subject to certain conditions. Deposits qualify for deduction u/s 80-C of Income Tax Act on the deposits made in new accounts opened on or after 8th December 2007.

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.

5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Deposits in 5 year time deposit qualify for deduction under section 80-C of Income Tax Act on the deposits made in new accounts opened on or after 8th December 2007. The Interest is entirely taxable.

NABARD rural bonds:  The Finance Act, 2007 inserted clause (xxii) in sub-section (2) of section 80C of the Income-tax Act to provide that deposits made in  bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by notification in the Official Gazette, specify in this behalf, shall be eligible for deduction under the said section. 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.

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.
  • Contribution for participating in the unit-linked insurance plan (ULIP) of LIC Mutual Fund (i.e. Dhanraksha plan of LIC Mutual Fund)
  • Payment for notified annuity plan of LIC (i.e. Jeevan Dhara, Jeevan Akshay New Jeevan Dhara ,etc ) or any other insurer.
  • Contribution for participating in the Unit-Linked Insurance Plan (ULIP) of Unit Trust of India.
Tuition Fees : Any sum paid as tuition fees to any university/college/educational institution in India for full time education. Nowadays most of  income tax payee have to incur quite high payments towards the education fees of their children. The expenditure incurred on education fees is eligible for a deduction under Income Tax Act, So, if you are incurring expenditure towards education fee of your children, please check whether these are eligible for deduction under the IT Act.

Source: www.caclubindia.com

Tax Collection Press Release from April-December for Asstt. Year 2015-16

Today, CBDT has issued a press release report on Tax Collection from April-December for Asstt. Year 2015-16 recently on 23rd, January, 2015.  This press release display the total collection of Income Tax including TDS, TCS, Advance Tax etc. from Taxpayee, Tax Deductors and Tax Collectors etc.  The details of this Press Release is as under :

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

***

New Delhi, 23rd January, 2015

PRESS RELEASE

Gross direct tax collection during April-December of the Financial Year 2014-15 is up by 12.93 percent at Rs. 5,46,661 crore as against Rs. 4,84,063 crore collected during the same period last year. Gross collection of Corporate tax has shown an increase of 12.79 percent and stood at Rs. 3,50,494 crore as against Rs. 3,10,754 crore collected during the same period last year. Gross collection of Personal income tax is up by 12.62 percent and stood at Rs.1,90,391 crore as against Rs.1,69,059 crore collected during the same period last year. Securities Transaction Tax(STT) stands at Rs. 4940 crore at a growth of 43.44%. Net direct tax collections are up by 7.41 percent and stand at Rs. 4,48,401 crore, as compared to Rs. 4,17,477 crore in the same period in the last fiscal.

2. Advance tax collection has shown a growth of 13.15% during April-December of the FY 2014-15 as against the growth of 8.76% shown at the same time previous year. Growth in TDS is 7.84% as against 16.73% in the same period last year.

3. The Self-Assessment Tax shows a growth of 22.20% as against 11.86% in the same period last year. The growth in Regular Tax is 33.03% as against 15.60% in the same period last year.

(Rekha Shukla)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT

Basic Tax Exemption Limit for Salaried Employee for Asstt. Year 2015-16

Basic exemption limit to be increased from Rs. 2 lakhs to Rs. 2.5 lakhs for an individual below the age of 60 years and from Rs. 2.5 lakhs to Rs. 3 lakhs ,in case of an individual who is of age of 60 years or above, but below the age of 80 years.

The existing limit of deduction under section 80C to be increased from Rs. 1 lakh to Rs. 1.5 lakhs. The annual ceiling limit for investment in Public Provident Fund to be increased from Rs. 1 lakh to Rs. 1.5 lakh.

The deduction in respect of interest on housing loan borrowed for acquisition or construction of self occupied house property to be enhanced from Rs. 1.5 lakhs to Rs. 2 lakhs.

No change proposed in the income tax rate,surcharge and education cess.

Easy Income Tax Calculation Software for Salaried Employee for Asstt. Year 2015-16

EASY INCOME TAX CALCULATION SOFTWARE
(SALARIED EMPLOYEE)
FOR ASSTT. YEAR 2015-16

With reference to circular No. 17/2014 dated 10.12.2014 regarding to calculate Income and Income Tax Deduction from Salaries during the Financial Year 2014-15 under section 192 of the Income Tax Act, 1961. Each and every salaried employee wants to calculate Income Tax liability before submitting Salary Bill of Feb-2015.  Look into this matter only 2 months in your hand to save Tax by little investments.  This is the updated Tax Calculation utility for every salaried employee and gives facility to generate Form-16 automatically, provide Month-wise Salary Statement, Tax Calculation Form for the Asstt. Year 2015-16.

Facility of this software:
It is easy wat to Calculate Income Tax including Month-wise Salary Statement and Form 16 (Annexure "A" and "B") in TRACE format. This utility helps to employee to calculate tax liability with all applicable deductions, exemptions etc.

This utility covered by Deduction of Chapter-VIA and other Deductions as per circular of Income Tax Department for Salaried Employee.

This Software is based on Income Tax circular issued by Income Tax Department for Salaried Employee for Assessment Year 2015-16.

Physical Requirements:
  • OS required Windows-2000, XP, Vista, Windows-7, Windows-8 etc.
  • MS Office-7 or Above Version is required.
  • Printing Facility Provides on Inkjet, Ledger Printer and other printers.
  • Required Standard A4 Size Paper Sheets.
Data Entry:
  • Only  "White" Cells are provide for input data.
  • Press Mouse Buttons for applications which you want to operate.
Key Features:
  • It maintain Each Employee Data.
  • It Calculate Gross Income as per current D.A. Rates automatically as per Government D.A. Rates.
  • It Provides Facility to Enter Data Manually along with all Arrears etc.
  • It Calculate Tax Liability.
  • It Display Month-wise Salary Statement for Asstt. Year 2013-14.
  • It Generate TDS Certificate (Form 16) Automatically with Annexure "B".

Penalty for late filing of the e-forms under Companies Act, 2013

Beware friends!! Don’t delay the filing of e-forms under companies act by more than 270 days from the last date of filing the form!!

Let’s start with discussing the charging section of penalties.

Section 403:

Brief: If a assessee delays filing of e-form by more than 270 days from the time period granted for filing of the respective e-form, then penalty as given in the concerned section will be imposed.

For eg: If the resolution to be attached in MGT-14 is passed on 21.01.2015, then normal time to file the form is 30 days. Penalty will be imposed if the person doesn’t file the form within 300 days from 21.01.2015 or if the form is not filed within 270 days from 20.02.2015.

Bare law:

Sec 403. (1) Any document, required to be submitted, filed, registered or recorded, or any fact or information required or authorized to be registered under this Act, shall be submitted, filed, registered or recorded within the time specified in the relevant provision on payment of such fee as may be prescribed:
             Provided that any document, fact or information may be submitted, filed, registered or recorded, after the time specified in relevant provision for such submission, filing, registering or recording, within a period of two hundred and seventy days from the date by which it should have been submitted, filed, registered or recorded, as the case may be, on payment of such additional fee as may be prescribed:
             Provided further that any such document, fact or information may, without prejudice to any other legal action or liability under the Act, be also submitted, filed, registered or recorded, after the first time specified in first proviso on payment of fee and additional fee specified under this section.
         (2) Where a company fails or commits any default to submit, file, register or record any document, fact or information under sub-section (1) before the expiry of the period specified in the first proviso to that sub-section with additional fee, the company and the officers of the company who are in default, shall, without prejudice to the liability for payment of fee and additional fee, be liable for the penalty or punishment provided under this Act for such failure or default.

Now, let’s discuss the penalty.

S.No.
Particulars
Section
Penalty
1.
Commencement of Business
Section 11(2)
Company – upto Rs. 5,000/-
Officer – upto Rs. 1,000/- per day
2.
Return of Allotment
Section 39(5)
Company & officer in default: Rs. 1000/- per day or 1 lakh, whichever is less.
3.
Intimate alteration of Capital
Section 64(2)
Company & officer in default: Rs. 1000/- per day or 5 lakh, whichever is less.
4.
Deposits
Section 66(11)
Officer will be liable u/s 447 and company will have to pay from Rs. 5 lakh to 25 lakh.
5.
Charges
Section 86
Company: Rs. 1 lakh to 10 lakh
Officer: Imprisonment upto 6 months and/or fine of Rs. 25000/- to 1 lakh
6.
Annual Return
Section 92 (5)
Company: Rs. 50,000/- to 5,00,000/-
Officer: Rs.  50,000/- to 5,00,000/- and/or imprisonment of 6 months
7.
Filing of resolutions
Section 117 (2)
Company: Rs. 5 Lakh to 25 Lakh.
Officer: Rs. 1 Lakh to 5 Lakh.
8.
Retirement of Auditor
Section 140(3)
Auditor: Rs. 50,000/- to Rs. 5 Lakh
9.
Intimation of DIN
Section 157 (2)
Company: Rs. 25,000/- to Rs. 1 lakh
Officer: Rs.  25,000/- to Rs. 1 lakh
10.
Disclosure of Interest
Section 184 (4)
Director: Rs. 50,000/- to Rs. 1 lakh and/or imprisonment upto 1 year.

 This isn’t the complete list, but for sure to make us aware of the stringent provisions of Companies Act, 2013.

Source: www.caclubindia.com

Budget 2015-16 - 3-year Bank FDs may get Tax Exemption

MUMBAI: The government may consider the demand of banks to make fixed deposits for three years and more tax-free instead of the five-year lock-in period at present, providing these lenders a level-playing field with mutual funds and tax-free bonds that have been weaning away a large chunk of investors.

Indicating this possibility, officials said bank executives and heads of financial institutions also requested finance minister Arun Jaitley in a pre-budget meeting to consider separate tax slabs for corporate entities on the lines of different tax slabs for individuals.

"The view from the pre-budget meeting is that FDs of lower maturity should be considered for tax benefits," said a person present in the meeting.

Bankers say this will discourage people from opting for other instruments like mutual funds, which have a lock-in period of three years. The terms of schemes eligible for tax rebate under Section 80 C are not uniform; while public provident fund has a lock-in period of 15 years, it is six years in the case of national savings certificate and three years in equitylinked savings schemes (ELSS).

"Largely, it will bring flexibility to people in terms of lock-in and lower lock-in will make it (the sum invested) available after three years," said Suresh Sadagopan, founder of Ladder 7 Financial Advisories. "This will bring bank FD in direct competition with ELSS."

Financial saving as a percentage of gross domestic saving fell to 7.1% in 2012-13 from 7.2% in the previous year. Gross domestic saving fell to 30.1% from 31.3% during this period.

At present, investment up to Rs 1.5 lakh in certain instruments including various post office schemes, public provident fund, bank deposit, life insurance and principal paid on housing loan is eligible for a tax rebate.

Source: www.economictimes.indiatimes.com

e-Filing Return reminder for Assessment Year 2014-15 email by CBDT

Recently, CBDT has been sent an e-mail to those assessees whose Income Tax Return for Assessment Year 2014-15 yet not filed in Income Tax Department by e-filing process.  This reminder is based on data available with e-filing website of Income tax India which filed by assessee in previous year.  By this reminder, department of Income Tax asked some questions in a online form in which Assessee has to inform or provide the reason for non filing of return. Assessee can choose the option applicable to him and after choosing his option he can click the submit button given in the email, which is as under :

A format of one such letter is as follows :-

Reminder for Filing of Income Tax Return for Assessment Year 2014-15 – PAN: ABCPJXXXXP
 
Dear Taxpayer,

          This is a gentle reminder for you to file your Income Tax Return for Assessment Year 2014-15. Though, the due date for filing returns for AY 2014-15 is over, there is a provision under the Income Tax Act to file a belated return which may help you to remain compliant with requirements of law. E-filing is simple, easy and convenient as you would have experienced in previous years.

          You are, therefore, kindly requested to login to https://incometaxindiaefiling.gov.in and download the free return preparation software with a host of new features to help you in preparing the Income Tax return and submit your return. You can also prepare and submit ITR-1 and ITR-4S online.

          Please take some time to browse through all the value – added services offered on the E-filing website that will help you prepare your return accurately and guide you in case of any prior pending items.
  • Will be submitting ITR shortly.
  • Already submitted the ITR of AY 2014-15 online.
  • Already submitted the ITR of AY 2014-15 in paper-mode.
  • Income is below taxable limit for AY 2014-15.
         Needless to mention that the quicker you submit your return and send the signed ITR-V (ITR-Verification) form to CPC, Bangalore, the faster you will get your refund, if any, credited to your bank account. As on 23rd December 2014, over 58.17 lakh refunds have already been issued for AY 2014-15! File early to get your return processed soon.

Regards,
e-Filing Team,
Income Tax Department

Interest Rate @ 9.1% for Investment in 'Sukanya Samridhi Account' During 2014-15

Recently, Hon'ble Prime Minister declared by Office Memorandum dated 20-01-2015 the Interest Rate on Investment in "Sukanya Samridhi Account" during Fin. Year 2014-15 is 9.1%.  The scheme of "Sukanya Samridhi Account" is specially for Girl Child which announcement by Finance Minister in his Budget Speech 2014-15.  The details is as under:

SUKANYA SAMRIDHHI ACCOUNT RULES, 2014 - RATE OF INTEREST TO BE ALLOWED ON INVESTMENTS IN SAID SCHEME DURING FINANCIAL YEAR 2014-15

OFFICE MEMORANDUM [F.NO. 2/3/2014.NS-II], DATED 20-1-2015

Subject: Launch of scheme for Girl Child named "Sukanya Samridhhi Account" by Hon'ble Prime Minister - rate of interest reg.

In compliance of announcement by Finance Minister in his Budget Speech 2014-15 the Government of India has introduced a new scheme named "Sukanya Samridhhi Account" vide Notification No.GSR No.863(E), dated 2nd December, 2014. It has been decided to allow 9.1% rate of interest on investments in the scheme during the financial year 2014-15.

This has the approval of Union Finance Minister.

ITAT says cash deposit of above 10 lakhs in bank account doesn’t indicate that income has escaped assessment.

The assessee had deposited cash in excess of Rs 10 lakhs in his saving bank account but he had not filed return of income. The AO reopened the assessment of assessee, as he had reason to believe that there was an escapement of income of Rs 10 lakhs. The Tribunal held that the AO proceeded on the fallacious assumption that bank deposits constituted undisclosed income and overlooked fact that the source of deposit need not necessarily be income of the assessee
Facts:
(a)   The assessee had deposited Rs 10 lakhs (approx) in his saving bank account but no return of income was filed by him. The AO reopened the assessment of assessee, as he had reason to believe that there was an escapement of income of Rs 10 lakhs on part of assessee.
(b)   The instant appeal was filed against validity of reassessment proceedings.
The Tribunal held in favour of assessee as under:
(1)   At the stage of recording the reasons for reopening the assessment, the formation of prima facie belief that an income has escaped the assessment is necessary. However, it is also necessary that there must be something which indicates, even if not establishes, the escapement of income from assessment.
(2)   Merely because some further investigation had not been carried out, which, could have led to detection to an income escaping assessment could not be a reason enough to hold the view that income had escaped assessment.
(3)   In the instant case, merely the fact that deposits have been made in a bank account do not indicate that these deposits constitute an income which had escaped assessment.
(4)   AO proceeded on the fallacious assumption that bank deposits constituted undisclosed income and overlooked the fact that the sources of deposit need not necessarily be income of the assessee. The reassessment proceedings could not be resorted to unless there was reason to believe, rather than suspect, that income had escaped assessment. Thus, reassessment proceeding was to be set aside.

First Amendment in Income-Tax Rules, 2015 by insertion of Rule 12CA and Forms No. 64A and 64B

INCOME-TAX (FIRST AMENDMENT) RULES, 2015 – INSERTION OF RULE 12CA AND FORMS NO. 64A AND 64B
NOTIFICATION NO. 3/2015 [F.NO. 142/10/2014-TPL]/ SO 180(E), DATED 19-1-2015
In exercise of the powers conferred by section 295 read with sub-section (4) of section 115 UA of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—
1. (1) These rules may be called the Income-tax (1 st Amendment) Rules, 2015.
(2) They shall come into force from the day of their publication in the ) Official Gazette.
2. In the Income-tax Rules, 1962,—
(A) after rule12C the following rule shall be inserted, namely:—

"Statement under sub-section (4) of section 115UA.

12CA. (1) The statement of income distributed by a business trust to its unit holder shall be furnished to the Principal Commissioner or the Commissioner of Income-tax within whose jurisdiction the principal office of the business trust is situated, by the 30th November of the financial year following the previous year during which such income is distributed,:

Provided that the statement of income distributed shall also be furnished to the unit holder by the 30th June of the financial year following the previous year during which the income is distributed.

(2) The statement of income distributed shall be furnished under sub-section (4) of section 115UA by the business trust to—
(i) the Principal Commissioner or the Commissioner of Income-tax referred to in sub-rule (1), in Form No. 64A, duly verified by an accountant in the manner indicated therein and shall be furnished electronically under digital signature;
(ii) the unit holder in Form No. 64B, duly verified by the person distributing the income on behalf of the business trust in the manner indicated therein.

(3) The Director General of Income-tax (Systems) shall specify the procedure for filing of Form No. 64A and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the statements so furnished.";
(B) in the Appendix II, after the Form No. 64, the following Forms shall be inserted, namely:—
"FORM NO. 64A
[See rule 12CA(2)(i)]
Statement of income distributed by a business trust to be furnished under section 115UA of the Income-tax Act, 1961
1. Name of the business trust
2. Address of the registered office
3. Permanent Account Number
4. Previous year ending
5. Name and address of the trustees of the business trust
6. Date of registration of the business trust with SEBI
(i) under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014
(ii) under the Securities and Exchange Board of India ( Infrastructure Investment Trusts) Regulations, 2014
7. Whether the units of the business trust are listed on any recognised stock exchange at any time during previous year      Yes/No
8. Aggregate income of the Business trust from all sources (9+11+13)
9. Income by way of interest referred to in section 10 (23FC)
10. Proportion of (9 to 8)
11. Income by way of Dividend referred to in section 115-0
12. Proportion of (11 to 8)
13. Income other than that referred to in 9 and 11
14. Proportion of (13 to 8)
15. Details of persons being unit holders, referred to in sub-section (1) of section 115UA to whom the income is distributed, in the following format :—
S. No. Name(s) Address(es) PAN Total amount distributed Amount of income in the nature of interest referred to in section 10(23FC)
[Column 5 × Sl. No.10]
Amount of income in the nature of Dividend referred to in section 115-O
[Column 5 × Sl. No.12]
Amount of other income [Column 5× Sl. No.14]
1 2 3 4 5 6 7 8

Enclose a copy of the certificate of registration under the Securities and Exchange Board of India Act, 1992, (15 of 1992).

Enclose a copy of the trust deed registered under the provisions of the Registration Act, 1908, (16 of 1908).

Enclose audited accounts including balance sheet, annual report, if any, with certified copies of income and appropriation towards distribution of income.

I, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Name in full and in block letters) son/daughter/wife of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . do hereby solemnly declare that to the best of my knowledge and belief what is stated above and in the Annexure(s), including the documents accompanying such Annexure(s), is correct and complete. I further declare that I am furnishing such statement in my capacity as . . . . . . . . . . (designation) and that I am competent to furnish this statement and verify it.

Verified today the . . . . . . . . . day of . . . . . . . . . . ..

Place

Signature . . . . . . .

. . . . . . . . . . . . . . . . .
Verification

I/We* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . have examined the books of account and other documents showing the particulars of income earned and the income distributed to the unit holders by the . . . . . . . .. . . . . . . . (name of the Business trust) for the previous year ending . . . . . . . . . . . .

2. I/We declare that the above particulars are true and correct to the best of my/our knowledge and belief.
(Signature with name of the Accountant)

Place

Date

Notes:
1. "Accountant" means the accountant as defined in the Explanation to sub-section (2) of section 288 of the Income-tax Act, 1961.
2. * Strike out whichever is not applicable.".
FORM NO. 64B
[See rule 12CA (2)(ii)]
Statement of income distributed by a business trust to be provided to the unit holder under section 115UA of the Income-tax Act, 1961
1. Name of the unit holder
2. Address of the unit holder
3. Permanent Account Number of the unit holder
4. Previous year ending
5. Name and address of the business trust
6. Permanent Account Number of the business trust
7. Details of the income distributed by the business trust to the unit holder, during the previous year, in the following format :—
S. No. Amount distributed Date of distribution Amount of income in the nature of interest referred to in section 10(23FC) Amount of income in the nature of Dividend referred to in section 115-O Amount of other income
1 2 3 4 5 6



I, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Name in full and in block letters)son/daughter/wife of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . do hereby solemnly declare that to the best of my knowledge and belief what is stated above and in the Annexure(s), including the documents accompanying such Annexure(s), is correct and complete. I further declare that I am furnishing such statement in my capacity as . . . . . . . . . . . . . . . . . . . . . . (designation) and that I am competent to furnish this statement and verify it.

Verified today the. . . . . . . . . . . . . . . . . . . . . . . day of . . . . . . . . . .

Place " .
Signature . . . . . . . .