Gsoftnet

How to determine and undertaking Deductions u/s. 80IC of Income Tax Act.

2012-01-28T07:17:00.003+05:30

In respect to determine and undertaking Deductions u/s. 80 IC of Income Tax in certain special category states are as under:

Assessee eligible for deduction: - every assessee is eligible for this deduction irrespective of its residential status or corporate status. Deduction is operative from the assessment year 2004-05 and onwards.

Conditions to be satisfied: - the following conditions to be satisfied for the deductions under section 80 IC of income tax act.

Return of income to be furnished: - under section 80 AC of income tax act, the assessee should furnish return of income within the time limit specified under section 139(1) of income tax act.

Accounts of the enterprises or undertaking to be audited: - under section 80IA (7) of income tax act, the accounts of the assessee should be audited by a chartered accountant from the relevant year for which deduction is claimed. The report of such report should be furnished along with the return of income in the prescribed form duly signed and verified by chartered accountant.

Undertaking should be new and not formed by splitting up or reconstruction of an existing business: - under section 80IC (4) of income tax act, the object of these incentives is to promote new investment and not just relocation of existing ones. Therefore, it has been provided that the eligible undertaking should be new and not formed by splitting up and reconstruction of an existing business.

Exception in case of re-establishment, reconstruction of revival of an undertaking: - however this condition does not apply where the undertaking is discontinued due to extensive damage or destruction of its building, machinery or plant and furniture or account of natural disasters, civil disturbance, accidental fire or explosion, enemy action etc. and such undertaking is re-established within 3 years from the end of such previous year.
New plant and machinery used by the undertaking: - under section 80 IC (4) of income tax act, use of old plant and machinery is prohibited except under the following cases.

For import and use of second hand plant or machinery in India is deemed to be a new plant and machinery. Second hand plant or machinery imported and put to use for the first time in India is not to be regarded as machinery or plant previously used provided the following conditions are satisfied.
(1) It was used outside India by a person other than the assessee.
(2) Such plant and machinery is used in India for the first time.
(3) No depreciation in respect of such plant and machinery has been allowed or is allowable under the act for a period prior to its installation by the assessee.

Transfer of old plant or machinery not exceeding 20% of the total value of plant or machinery of the new undertaking :- where the value of plant or machinery previously used by the assessee is transferred to the new undertaking, such value should not exceed 20% of the total value of plant or machinery used in the new undertaking.

Production schedule, nature of product and location: - the enterprise or undertaking must manufacture or produce the specified articles or things within the stated time period in special category states. An existing enterprise or undertaking manufacturing or producing eligible articles or things will be covered, provided it’s substantially expands its business.

How to calculate Stock, What is its method, When Case is in Scrutiny or Appeal - New Decision.

2012-01-28T07:12:00.001+05:30

As per the latest decision of High Court against Income Tax and Assessee for Stock Valuation in Books of Account, this method is not on the basis of Market Value.

Commissioner of Income Tax Vs C Jayanti Lal (2011) 199 Taxmann 34 (Magazine) : During scrutiny of this case, ITO has added income worth Rs. 17.71 Lakh due to difference in stock amount. ITO has calculated Stock on the basis of Market Value. Due to this an amount of Rs. 17.71 Lakh has been added by ITO. But this case goes in High Court and accepted that Stock Valuation has been calculated by businessman as per rules " Cost Price and Market Value " which ever is less. On the basis of this rule, addition of Rs. 17.71 Lakh has been deleted by High Court.

Note : If an assessee calculates his closing stock on a particular method in last few years, Assessing Authority (A.O. ) can not create any addition/demand on the basis of different Stock Valuation Method.

Entry Form, Tax Calculation & Salary Statement for Assessment Year 2012-13

2012-01-27T08:18:00.003+05:30

A Salaried (Taxpayee) Employee are busy in Tax Calculation thus I develop easy , user friendly, excel base Tax calculation utility for Assessment year 2012-13. This utility contains projection of Tax and Salary Statement (monthwise). Employee of Maharashtra and Other State which they drawn salary as per State Government and Central Government Departments with All applicable allowances along with Dearness Allowance and as well as deductions withdrawal as per Salary Register.

This is Entry Form picture.

In this Entry Form entered information in only White Field/Cell, you will get all Gross Salary and Gross Deductions of Financial Year 2011-12 as per Maharashtra Government Salary Structure and Dearness Allowance.

If you want to Tax Calculation then click on Tax Calculation Button, you will see the following fig.

In the Tax Calculation form Enter Data in While cell/field to Calculate Proper Tax payable or Refund. After calculation of Tax press "Exit" Button to go to "Entry Form". If you want to print or preview your Mothiwise Salary Statement, then press on "Monthwise Salary Statement" Button. See the Following Pic.

After preview you may print, print this page in "Legal Size Paper" in Landscape format.

Download Now
Tax Calculator
Download Now

What is Income Tax Slab for Assessment Year 2012-13 (Click Here)
Download TDS .FVU Utility (Click Here)
How to Create Form No. 16 (Click Here)

How to claim Mediclaim Exemption u/s. 80D of Income Tax Act?

2012-01-27T08:00:00.004+05:30

Now a days, Taxpayee (Assessee) are engaged to see how to save Income Tax from various criteria. The best option is that Mediclaim Exemption to save Income Tax u/s. 80D and secure the heath. The medicalim Policy is for Individual and HUF are available and get benefit of Tax u/s. 80D. The details regarding 80D and medicalim Insurance are as under:

1. Addition to section 80 C: Section 80D is available other than 100000 deduction available under 80C for life insurance, ppf, gpf, tuition fee, ULIP, House loan repayment etc.
2. Insurer covered: This deduction is available for medical claim policy which should be framed in this behalf by
* by GIC (General insurance Corporation) or by
* any other insurer but approved by IRDA (Insurance Regulatory Development authority)
3. Available to : Deduction is available to
* Individual (resident or non resident, Indian Citizen or foreign citizen)
* HUF(Hindu undivided Family may be resident or non resident)
4. Mode of payment: Insurance Premium should be paid by any mode other than by Cash . Means if insurance premium is paid by cash then no deduction is available.Before Assessment year 2008-09 ,only payment by cheque was allowed under this section but from Ay 2008-09 onwards the deduction is allowed by other mode also like online payment which is now a days is very popular or by credit card is also allowed.
5. Out of Income : The amount should be paid out of the income chargeable to tax.
6. Proposer of the policy is not must: The premium is to be paid to effect or keep inforce insurance policy ,there is no condition that assessee should be the proposer of the policy ,
7. Partly contribution: Assessee can partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)
8. Insurance cover on?: First deduction given below : Insurance Premium may be paid for medical claim insurance policy for assessee himself or spouse or dependent children or any combination of three.
9. Addition for parents: Second deduction given below:Insurance premium may be paid for medical claim insurance for assessee parents (father or mother or for both)
10. Deduction upto 40000: Theoretically ,maximum deduction can be claimed for Rs 40000.(detail as given below)

Amount Of deduction : Two type of Deductions are available to Individuals under this section from Assessment year 2009-10

1. Deduction on Medical insurance premium paid for himself,spouse,dependent children =Rs 15000 maximum.
2. Deduction on Medical insurance premium paid for parents ,whether dependent on assesee or not =Rs 15000 maximum

Deduction to HUF: Deduction to HUF is available on insurance premium paid for policy taken for of any member of the HUF.

Addition deduction for Resident Senior Citizen: In addition to two point above, additional deduction of Rs 5000 is available where assessee or his spouse (wife or husband) or dependent parents or any member of the family in case one and father or mother is a resident in India and a senior citizen in case two.And same in the case of HUF assessee if policy has been taken on member which is senior citizen than additional Rs 5000/- deduction is available also to HUF.

Senior citizen means who is at least of 65 year of age or more at any time during the previous year.

Wish you all Happy Republic Day 26th January.

2012-01-25T22:30:00.003+05:30

In India, When the Constitution of India came into force replacing by the Government of India Act, 1935 as the Governing document of India on 26th January 1950, call Republic Day therefore this Day celebrate on Honor as Republic Day.

WISH YOU ALL
HAPPY REPUBLIC DAY..

D. A. Rates of 4th Pay, 5th Pay and 6 Pay Commission.

2012-01-25T05:24:00.004+05:30

The Dearness Allowance Rates in Maharashtra for 4th Pay, 5th Pay and 6th Pay Commission which are applicable to State Employee, Non-Govt. Employee, Aided Employee whose salary drawn by Maharashtra State Government. From Time to time, we updated all latest information for Employee and analyze the Resolutions, which passed by the Government.
The latest updated Dearness Allowance Rates are as follows:

DATE	D.A. RATES	PAY COMMISSION
01/01/1994	104.00%	D.A. RATES AS PER 4TH PAY COMMISSION
01/07/1994	114.00%
01/01/1995	125.00%
01/07/1995	136.00%
01/01/1996	148.00%
01/07/1996	159.00%
01/01/1997	170.00%
01/07/1997	182.00%
01/01/1998	190.00%
01/07/1998	203.00%
01/01/1999	213.00%
01/07/1999	218.00%
Note: The 5th Pay Commission was announced and implemented on 01 Jan. 1996.
01/01/1996	0.00%	D.A. RATES AS PER 5TH PAY COMMISSION
01/07/1996	4.00%
01/01/1997	8.00%
01/07/1997	13.00%
01/01/1998	16.00%
01/07/1998	22.00%
01/01/1999	32.00%
01/07/1999	37.00%
01/01/2001	38.00%
01/10/2001	41.50%
01/04/2002	44.50%
01/08/2003	55.00%
01/06/2004	61.00%
D. A. Merge 50% in Basic Pay as "D.P." from 01.08.2004
01/08/2004	50% + 11%
01/04/2005	50% + 14%
01/07/2005	50% + 21%
01/05/2006	50% + 24%
01/09/2009	50% + 29%
01/04/2007	50% + 35%
01/07/2007	50% + 41%
01/01/2008	50% + 47%
01/07/2008	50% + 54%
01/01/2009	50% + 64%
01/07/2009	50% + 73%
01/06/2010	50% + 87%
01/11/2010	50% + 103%
01/05/2011	50% + 115%
01/10/2011	50% + 127%
Note: The 6th Pay Commission was announced and impleted on 01 Jan. 2006.
01/01/2006	0.00%	D.A. RATES AS PER 6TH PAY COMMISSION
01/07/2006	2.00%
01/01/2007	6.00%
01/07/2007	9.00%
01/01/2008	12.00%
01/07/2008	16.00%
01/01/2009	22.00%
01/07/2009	27.00%
01/06/2010	35.00%
01/11/2010	45.00%
01/05/2011	51.00%
01/10/2011	58.00%

How to decide Selling of Own land after Plotting, is the Business Income or Capital Gain?

2012-01-23T05:47:00.003+05:30

Now a days business person making more income from plotting business, but non-taxpayee having ancestral property and decide to selling it as plotting business and get more income from them, then how to decide this income is capital gain or Business Income.

Whether selling of own land after plotting it out in order to secure better prices, in an advantage of trade or business?

Facts of the case: - the assessee received certain agricultural land by way of gift-deed. Therefore, the assessee got the said land diverted for non-agricultural purposes.

The land was converted into plots. The assessee tool development work of the colony such as leveling of the land, construction of the roads and drainage system etc. and thereafter sold the plots. The assessing officer proposes to assess the income from sale of plots as business income, being adventure in the nature of trade.

Held: - the earning from the sale of land is from capital gain and not from business. The selling of own land after plotting it out in order to secure better prices is not an adventure in the nature of trade. An isolated transaction or activity cannot be a part of the business.

To consider the question of business, there must be regular activities of purchase and sale. In this case, there was nothing on record to show that the land was purchased for the purpose of selling into plots. Basically, it was gifted land which was developed into plots to secure better prices. The isolated activities could not come within the preview of adventure in the nature of trade or business.

When delays to NEFT Credit Fund in time get 10.50% interest benefit.

2012-01-23T05:36:00.001+05:30

By RBI instructions to Banks that when NEFT (National Electronic Fund Transfer) transfer fund to another account, it takes a few hours but when it would be late transferred and is usually done with the same day then it could be a delay transfer fund and thus the benefit of interest of 10.5% takes place on this NEFT Credits.

Types of delay Sometimes there is a delay in crediting the beneficiary customer's account. When you transfer funds via NEFT to a friend's account and there is a delay in the funds being credited to his/her account. Then there is a delay in returning the un-credited amount to the remitter. At times, there is a delay from the bank's side in doing so.

The rule The Reserve Bank of India (RBI) had issued some guidelines for banks. According to these, banks are required to pay a penal interest at the current RBI's repo rate plus 2% for the delayed period, or until the date of refund, as per the case. The repo rate is currently 8.5%, so you should get 10.5% as penal interest on any delay.

What you can do If you find that your NEFTs are delayed, get in touch with the bank customer facilitation centres (CFCs). If for some reason, the CFC details displayed on the bank's website is outdated or you do not get a response, get in touch with RBI's banking ombudsman.

Updated Form 16/16A PDF Converter Utility Ver. 1.3 Free Download

2012-01-22T08:54:00.003+05:30

Now TDS Deductor Generate Form 16A in PDF Format and issue Form 16A to TDS Deductee. ForFree Form 16A PDF Converter Utility TDS Deductor must Registered TAN with NSDL-TIN. The Procedure for Download of Form 16A in PDF are as follows:

Form 16A PDF Converter Utility:

The Form 16A text file is to be passed through the PDF Converter Utility to convert to generate PAN wise Form 16A in PDF format.
The PDF Converter Utility is available to registered TANs at TIN.
It is available under the option ‘Form 16A’ post login to TAN account.

Procedure for Download of Form 16A PDF converter utility

Download “FORM_16A_PDF_CONVERTER” from TAN registration login under the option “Download PDF converter” in Form 16A menu. Form 16A PDF converter utility can be downloaded at the desired location.
JRE (Java Run-time Environment) [versions: SUN JRE: 1.6 and above] should be installed on the computer where the e-TDS/TCS FVU is being installed.
JRE is freely downloadable from http://java.sun.com or ht tp://www.ibm.com/developerworks/java/jdk or You may ask your computer vendor (hardware) to install the same for you.
For installing the Form 16A PDF converter, double click on the exe (FORM_16A_PDF_CONVERTER.exe) file downloaded from TAN registration login.
On double clicking, a window will be displayed for extracting the contents of the exe file. Default location for extracting the files will be C drive.
The files can also be extracted in any other location (other than C drive). In that case, define the appropriate path by clicking the ‘Browse’ button where the files are to be extracted.
For extracting the contents of the file click “Unzip” button. On clicking the “Unzip” button, two files will be extracted at the default path (C:\PDF Converter Utility) or the desired location as the case may be:
PDF Converter Utility.jar
Start_Form16A_Utility.bat
To open the PDF converter utility, double click on the file “PDF Converter Utility.bat” available in the folder where PDF converter utility has been installed. On double click of the file, window as below will open.

Procedure for Download of Form 16A PDF Converter (Click Here)

How to save Income Tax upto 6180.00, Get today Infrastructural Tax Saving Bond.

2012-01-20T08:33:00.003+05:30

Every Salaried Employee/Taxpayee viewing to save Income Tax, but how & which is reliable as well as secure safe. We suggest them L&T is the best Infrastructural Tax Saving Bond for those employee whose Taxable Income goes to above 800000.00. With the help of such type of bonds, income tax assessee can save extra benefit of saving of Rs. 20,000.00 under section 80CCF. Credit rating of L&T is CARE AA [ICRA] AA+.

Scheduled time:

Opening Date of issue is 10th January, 2012
Closing Date of issue is 11th, February, 2012

The following KYC Documents are required for submission of L&T Infra Bonds 2012A series.

1. Identification Proof for individuals:

Passport
Voter's ID
Driving Licence
Government ID Card
Defence ID Card
Photo PAN Card
Photo Ration Card

2. Address Proof (Residential) :

Passport
Voter's ID
Driving License
Ration Card
Society Outgoing Bill
Life Insurance Policy
Electricity Bill
Telephone (Land/Mobile) Bill.

3. Copy of the PAN card.

Download Form Click Here
Download KYC Documents Information Click Here

What persecution takes by the Deductor when TDS Deposit/Payment made late?

2012-01-20T08:09:00.000+05:30

When the TDS Deductor (Individual/HUF/Company), default to deposit/payment TDS within stipulated prescribed time at Central Government such Deductor (Individual/HUF/Company) it must takes below persecutions:

Facts of the case: - the assessee-company deducted an amount as TDS but deposited this amount with interest to the credit of the central government after the prescribed time limit. Thereafter, show-cause notice was issued to the company and its director, being the principal officer of the company, for the prosecution under section 276B and Section 278B of income tax act. The company contends that TDS has already been deposited, there was no default and no prosecution can be ordered.

Held: - once a statute requires to pay tax and stipulates period within which such payment is to be made, the payment must be made within that period. If the payment is not made within that period, there is default and an appropriate action can be taken under the act. Interpretation canvassed by the appellant would make the provision relating to prosecution nugatory. It is true that the act provides for imposition of penalty for non-payment of tax. That however, does not take away the power to prosecute accused person if an offense has been committed by them.

Company is liable to prosecution even though, it is not a natural person but legal or juristic person. Principal Officer of the company could be prosecuted if no reasonable cause was shown by him for late payment or non-payment. [Madhumilan Syntex Ltd. Vs. Union of India (2007) 160 taxman 71(SC)].

Challan Correction of e-TDS/e-TCS total process and its Mechanism with Conditions & Application Format.

2012-01-19T08:15:00.004+05:30

Challan Correction Mechanism:

Under OLTAS (On Line Tax Accounting System), the physical challans of all Direct Tax payments received from the deductors / taxpayers are digitized on daily basis by the collecting banks and the data transmitted to TIN (Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers.

New Procedure of challan correction by banks (for physical challans):
To remedy this situation, a new Challan Correction Mechanism for physical challans has been put in place. Under this mechanism, for income tax payments made on or after 1.9.2011, the following fields can be got corrected through the concerned bank branch:

Assessment Year
Major Head Code
Minor Head Code
TAN/PAN
Total Amount
Nature of payment (TDS Codes)

The time window for the correction request by tax payer is as follows :

S.No	Correction required in Field name	Period of Correction Request (from Challan Deposit Date)
1	TAN/PAN	7 days
2	Assessment Year	7 days
3	Amount	7 days
4	Other fields (Major head, Minor head, Nature of payment)	Within 3 months

The time window for correction by the bank is 7 days from the date of receipt of correction request from the tax-payer.

Conditions:
The changes can be made by the banks, subject to following conditions:

Correction in Name is not permitted.
Any combination of correction of Minor Head and Assessment Year together is not allowed.
PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.
The change of amount will be permitted only on the condition that the amount so corrected is not different from the amount actually received by the bank and credited to Govt. Account.
For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.
There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.

Procedure:

The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
The tax-payer has to attach copy of original challan counterfoil.
In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached.
In case of correction desired for payments made by a tax-payer (other than an individual), the original authorization with seal of the non-individual tax¬payer is required to be attached with the request form.
A separate request form is to be submitted for each challan.

Procedure of challan correction by Assessing Officers (both physical and e-payment challans) After the window period available to banks for challan correction, the assessee can make a request for correction to his or her assessing officer, who is authorized under the departmental OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned assessee.

Format of application to bank for challan correction to be requested by the taxpayer

To

The Branch Manager,
----------------------------
(Address of Branch)

Taxpayer Details : Taxpayer Name :
Taxpayer Address :
Taxpayer TAN/PAN :
Name of Authorized Signatory : (in case of non-individual taxpayer)

Sub : Request for Correction in Challan No: 280/281/282/283 [Strike out which ever is not applicable]

Sir/Madam,
I request you to make corrections in the challan data as per following details Challan Details:

BSR Code	Challan Tender Date (Cash/Cheque Deposit Date)	Challan Sl. No.

Sl. No.	Fields in which correction required	Please Tick	Original Details	Modified Details
1.	TAN/PAN (10 digit)
2.	Assessment Year (YYYY)
3.	Major Head code (4 digit)
4.	Minor Head code (3 digit)
5.	Nature of Payment (3 digit)
6.	Total Amount (13 digit)

Note: Please tick against the relevant fields where changes are required. Tax payer/Authorized Signatory Date

Note:

Attach copy of original challan counterfoil.
In case of correction to challan 280, 282, 283 attach copy of PAN card.
In case of a non-individual tax payer, attach the original authorization with seal of the non-individual tax-payer.
The request form for correction is to be submitted in duplicate to the bank branch.
A separate request form is to be submitted for each challan.

In all TDS Transactions PAN Quote must or ready to pay penalty as Higher Tax.

2012-01-19T08:11:00.001+05:30

Remember when all Transactions paid as TDS by the Deductor or Deductee (Individual paid TDS/TAX), PAN is mandatory to quote in TDS Challan otherwise TAX/TDS Deductor / Deductee ready to pay Higher Tax as penalty or as punishment.

Get ready to cough up higher tax upfront from the next fiscal in case you do not quote the Permanent Account Number (PAN) in transactions subject to tax deduction at source.

“Tax at the higher prescribed rate or 20% will be deducted on all transactions liable to TDS where the PAN of the deductee is not available,” the finance ministry said in a statement on Wednesday.

The provision will have major implications for small contractors, small businesses, professionals and investors who earn interest from fixed deposits. The rate of TDS in these cases ranges from 1% to 10%.

The new provision related to tax deduction at source (TDS) under the Income Tax Act 1961 will become applicable with effect from April 1, 2010, it said. All assesses will have to quote their PAN in their correspondences, bills, vouchers and other documents sent to each other.

“All deductors are, therefore, advised to intimate their deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate,” the statement said. The law will also apply to all non-residents in respect of payments or remittances liable to TDS.

“All deductees, including non-residents having transactions in India liable to TDS, are advised to obtain PAN by March 31, 2010 and communicate the same to their deductors before tax is actually deducted on transactions after that date,” the Ministry said.

Assesses who do not have PAN will also not get certificate from assessing officer about lower or no tax liability, the statement said.

Calculate your 6th Pay Arrears from 01.01.2006 to 31.01.2012 as per Maharashtra Government D.A. Rates.

2012-01-18T05:45:00.000+05:30

Friends, it is general demand that how to calculate 6th Pay arrears as per Current Dearness Allowance Rate. We develops Excel base easy calculator to calculate Arrears as per Due and Drawn Salary Statements with Difference in Government Format.

Registration Free

Download Now

Recovery rule, when Deductor Deduct TDS Short?

2012-01-18T05:33:00.001+05:30

When the Deductor deduct short TDS from Deductee, then problem creates on the side of Deductor that how to recover Short/Less TDS. Therefore the following rule follow to Recover short/less TDS.

Whether the department could again recover tax from the deductor of tax at source on income which has been fully assessed in the hands of the deductee recipient?

The assessee company hired warehouse for the sale of the soft drink and deducted TDS on warehouse charges. The TDS deducted at 2% under section 194C. The assessing officer held that warehouse charges were in the nature of rent and tax ought to have been deducted at 20% under section 194I. Meanwhile, the lesser has been fully assessed on its income and claimed the refund of the tax. The assessing officer having held the assessing company in default for the shortfall in the amount of TDS wants to recover the shortfall and interest thereon from the deductor company. So he rejects the claim of refund and ordered fresh claim of the tax.

Under circular number 275/201/95/IT(B) dated 29-1-1997, it declares that no demand visualized under section 201(1) should be enforced after the deductor has satisfied the officer in charge of TDS that tax due have been paid by the deductee-assessee. However, this will not alter the liability to charge interest under section 201(1A) till the date of payment of taxes by the deductee-assessee. [Hindustan Coca cola beverage (P) ltd. Vs. CIT (2007) 163 TAXMAN 355 (SC).]

Latest updated Tax Calculator for Assessment Year 2012-13

2012-01-17T09:01:00.000+05:30

Friends, The Income Tax Department allows to file your Income Tax Returns even on or before 31st July, 2012 without any Interest or Penalties for the Assessment Year 2012-13. Due to this reason, Gsoftnet develops Tax Projection Calculator to count your Income Tax and Project of your Tax as per updated Income Tax Slab of Fin. Year 2011-12.

CAN'T REVISE RETURNS: If you miss the deadline, you will not be able to revise your returns. But if you file your returns by this deadline and later realise that you need to revise your returns, you get time till two years from the end of financial year or assessment year, whichever is earlier.
CAN'T CARRY FORWARD LOSSES: I-T rules permit you to carry forward losses to the next assessment year. But you can't do so if you miss the deadline.
PAY INTEREST: If you had tax dues in the current assessment year and you failed to file your returns on time, you have to pay interest.
IF YOU MISS MARCH 31,2012 DATE: You may have to pay a R5,000 penalty and the return can be filed by March 31, 2013.

Responsibilities of Tax Payee to check while submission of Income Tax Return :

Collect PAN Number
Salary income – Form 16/ Form 16A
Compile proof of other incomes
Calculate gross total income
Detail your eligible investments
Keep TDS Certificates handy
Pay taxes due if any, after TDS / advance tax
File appropriate return form

DOWNLOAD NOW

If you want to file your Income Tax Return by SAHAJ (Click Here)
Download Forms (ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6) Click Here
Do you know How to Submit your Income Tax (Click Here Now)

No need to pay Income Tax below Rs. 100/- as per CBDT.

2012-01-16T08:43:00.001+05:30

The Income Tax Department asked to CBDT to issue notice against Short deductions of Tax of below Rs. 100/-, i.e. Rs. 1, Rs. 6, Rs. 10/- etc. and whether the Taxpayee paid excess Tax as above like Rs. 1/-, 6/- 8/- it is refund amount also not need to pay to Taxpayee by Income Tax Department.

The Department has issued the clarification in response to reports that the Central Processing Centre (CPC), Bangalore, is sending notices for payment of tax arrears as small as Re 1, Rs 4 and Rs 6 and thus causing hardship to assessees.

As per extant procedure, demand of less than Rs 100 is not enforced but is liable for adjustment against future refunds.The communication from the CPC for partly amounts to tax payers, is not a demand notice. This measure is, in fact, an assessee-friendly exercise said the Central Board of Direct Taxes (CBDT) in a release.

The Department has also written to all chief commissioners to amend such entries, if approached by taxpayers. The I-T Department, it said, had created a central repository at Bangalore for better demand management and asked all officers to collate demand lying at various places. was suggested that taxpayers should also be informed about the same so as to enable them to take necessary action if the outstanding demands were incorrect. This measure was aimed at providing greater transparency. Therefore, a communication has been sent to taxpayers informing them about existing arrears," the release said.

Rent Free Accommodation u/s. 17(2)(1) of Income Tax Rule.

2012-01-15T07:11:00.000+05:30

Recently most of employee busy in Tax Calculation, and they search how to save Income Tax at various perquisite. The Rent free accommodation u/s. 17(2)(1) as per income Tax rule under perquisite is that the value of rent free accommodation provided to the assesse by the employer is a perquisite.

Accommodation provided to discharge official duty cannot be termed as perquisites:
Perquisites have a simple meaning as personal advantage. The word would not apply to a mere reimbursement of a necessary disbursement. So in order to be a perquisite, the residential property should be for benefit of the assesse, and not to discharge duty assigned to him. [Saipem vs. ITO (2002) 254 ITR 2].

Rent free accommodation to foreign technicians on deputation cannot be a perquisite:
Rent free accommodation can be a perquisite only when it is provided to the employee by the employer. When employee of the foreign company are on deputation in India with an Indian company, which provided the rent free accommodation , it would not constitute a perquisites within the meaning of section 17(2) of income tax act.[CIT vs. H.Link(2000) 244 ITR 93].

Accommodation at concessional rate of rent:
Accommodation at concessional rate of rent is also a perquisites under section 17(2) (2) of income tax act. This concessional rate should be provided by the employer to the employee.

How to Calculate relief u/s 89(1) when salary arrears received in Fin. Year 2011-12

2012-01-14T06:02:00.003+05:30

Tax relief when salary received in arrear or in advance

As the arrears of salary relates to 6th pay commission is being received by the employees. When a person/employee receive arrear or any advance in a financial year , he should collect complete information from their employer like as year wise amount of arrear/advance. If you have year wise amount of arrear then you can bifurcate your income year wise. In this way you can save income tax on your income under section 89.

Who is eligible to allow relief u/s 89 (1) Some specified DDO's can allow relief under section 89(1) . List of employers who can allow benefit u/s 89(1), if claimed by employee, is given as under :-

company,
Co-operative Society
Local Authority
University,
Institution,
Association or body
Govt State or center
Public sector undertaking

Complete detail regarding section 89 is given as under:-

⁴⁵[Relief when salary, etc., is paid in arrears or in advance.

89. Where an assessee is in receipt of a sum in the nature of salary, being paid in arrears or in advance or is in receipt, in any one financial year, of salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, or is in receipt of a sum in the nature of family pension as defined in the Explanation to clause (iia) of section 57, being paid in arrears, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed⁴⁶.]

The following proviso shall be inserted in section 89 by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 :

Provided that no such relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i) of clause (10C) of section 10, a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under clause (10C) of section 10 in respect of such, or any other, assessment year.

PAN and TAN is Mandatory Quoting in Form 16/Form 16A

2012-01-13T07:55:00.001+05:30

According to the provisions of section 203A of the Income-tax Act, it is obligatory for all persons responsible for deducting tax at source to obtain and quote the Tax-deduction Account No. (TAN) in the challans, TDS-certificates, statements and other documents. Detailed instructions in this regard are available in this Department's Circular No.497 (F.No.275/118/ 87-IT(B) dated 9.10.1987). If a person fails to comply with the provisions of section 203A, he will be liable to pay, by way of penalty, under section 272BB, a sum of ten thousand rupees. Similarly, as per Section 139A(5B), it is obligatory for persons deducting tax at source to quote PAN of the persons from whose income tax has been deducted in the statement furnished u/s 192(2C), certificates furnished u/s 203 and all returns prepared and delivered as per the provisions of section 200(3) of the Income Tax Act, 1961.

All tax deductors/collectors are required to file the TDS returns in Form No.24Q (for tax deducted from salaries). As the requirement of filing TDS/TCS certificates has been done away with, the lack of PAN of deductees is creating difficulties in giving credit for the tax deducted. Tax deductors and tax collectors are, therefore, advised to quote correct PAN details of all deductees in the TDS returns for salaries in Form 24Q. Taxpayers liable to TDS are also advised to furnish their correct PAN with their deductors, It may be noted that non-furnishing of PAN by the deductee (employee) to the deductor (employer) will result in deduction of TDS at higher rates u/s 206AA of the Income-tax Act,1961.

Free Download 6th Pay arrears Calculator as per Government Resolutions dated 22.4.2009

2012-01-13T07:55:00.000+05:30

Due to common demand of visitor we develops 6th Pay Arrears Calculator to calculate revised pay fixation arrears on or after 01.1.2006 as per pay fixation Government Resolution Dated 22.04.2009 and 29.04.2009. From time to time the Maharashtra Government amended and implemented in 6th Pay commission by the demand of various unions as legal demand. Therefore, this updated calculator are fully function-able with latest Dearness allowance Rates, Conv. Allowance Rate and HRA which is application as and when applied by the Government.

For Registration
Click Here
After Registration
(Click Here)

Download Tax Calculator, Tax Plan & Salary Statement for Assessment Year 2012-13.

2012-01-12T08:24:00.006+05:30

Now a day every Salaried Taxpayee Employee busy in Tax Calculation and due this demand I develops easy and friendly user excel base Tax calculation utility for Assessment year 2012-13. This utility provides you projection of Tax and Salary Statement monthwise which is issued by Tax Deductor. This utility are very useful for Every Employee of Maharashtra and Other State which they drawn salary as per State Government and Central Government Departments with All applicable allowances along with Dearness Allowance and as well as deductions withdrawal as per Salary Register.

This utility contains Entry Form as shown in below fig.
In this Entry Form entered information in only White Field/Cell, you will get all Gross Salary and Gross Deductions of Financial Year 2011-12 as per Maharashtra Government Salary Structure and Dearness Allowance.

If you want to Tax Calculation then click on Tax Calculation Button, you will see the following fig.

In the Tax Calculation form Enter Data in While cell/field to Calculate Proper Tax payable or Refund. After calculaton of Tax press "Exit" Button to go to "Entry Form". If you want to print or preview your Mothiwise Salary Statement, then press on "Monthwise Salary Statement" Button. See the Following Pic.

After preview you may print, print this page in "Legal Size Paper" in Landscape format.

Download Now
Tax Calculator
Download Now

What is Income Tax Slab for Assessment Year 2012-13 (Click Here)
Download TDS .FVU Utility (Click Here)
How to Create Form No. 16 (Click Here)

Clarification on Interest Rate on Small Savings Schemes

2012-01-12T07:57:00.002+05:30

Ministry of Finance has clarified that although the rate of interest on small savings schemes will be aligned every year with rates of Government securities of similar maturity, with suitable spread, the rates are fixed and not floating so far as individual investments except PPF are concerned. This is in response to news items appearing in certain sections of the Press that the interest rates on small saving schemes, revised by the Government w.e.f. 1.12.2011, are floating rates, which will undergo change according to fluctuations in the yield on the Government securities.

It has been clarified that the rate prevailing at the time of investments will remain fixed and unchanged till the maturity of the investment. Any revisions in interest rates in subsequent years will only be applicable to the investments made in the relevant period. For instance, investment made in an instrument other than PPF on 1.12.2011 will remain valid till the maturity of that instrument, irrespective of revision of interest rate with effect from 1.4.2012. As regards PPF, the interest rate fixed every year will be applicable to all PPF accounts.

Click Here to See Government Press Release Note.

How to get House Loan Interest Certificate from Bank for Tax Purpose.

2012-01-11T08:50:00.004+05:30

For the computing of Income Tax, the salaried person collect their Deductions Under Chapter - VIA and others Deductions from his Salary Income to Calculate Income Tax in the Current Financial Year, so that proper Tax Deductions can be done from their Salary to Deduct Tax as TDS in Form No. 16. In case deductor deduct excess TDS from the salary of any employee, the excess deducted amount will be received by employee after a time gap.

Keeping in view these things, State Bank of India has started a facility to their customers/borrowers to provide a "Provisional Home Loan Interest Certificate". This certificate directly effect the taxable salary amount with some limitations/conditions. Just Login In Personal Banking internet account with State Bank of India at www.onlinesbi.com and select the Provisional Home Loan Int. Certificate Link under Inquiries tab. Interest loan provisional certificate can be printed or downloaded in PDF format. Picture view of the said link is given as under :

Click Here for HRA Exemption Calculations

What does "Salary" includes and the "Deductions from Salary Income" for Assessment Year 2012-13

2012-01-11T08:18:00.001+05:30

The salaried employee (Taxpayee) alwaays search for Salary Income Deductions in each assessment year. In the Current Assessment year i.e. 2012-13 we suggest to know all Salaried employee about Deductions from Salary Income.

What is Salary?
As per Income Tax u/s. 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of “Salaries” including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to recognized provident fund (vii) Contribution of employer to a Recognised Provident Fund in excess of the prescribed limit (viii) Leave Encashment (ix) Compensation as a result of variation in Service contract etc. (x) Contribution made by the Central Government to the account of an employee under a notified pension scheme.

What are the Deductions from Salary Income?
The following deductions from salary income are admissible as per Section 16 of the Income-tax Act.

Professional/Employment tax levied by the State Govt.
Entertainment Allowance- Deduction in respect of this is available to a government employee to the extent of Rs. 5000/- or 20% of his salary or actual amount received, whichever is less.

It is to be noted that no standard deduction is available from salary income w.e.f. 01.04.2006 i.e. A.Y.2006-07 onwards.

Download and Calculate your Income Tax with Form 16 & Monthwise Statement For Assessment 2012-13

2012-01-10T07:48:00.003+05:30

Friends, it is a general demand to know about Income tax, how to deuduct monthly from salary . Normally an Employee needs to check their Income Tax. There we developed Excel Base Easy Calculator to Calculator your Tax for Deduct from Monthly salary bill.

Remember: Download facility are available for all but Installation and Key features are available only for those who is registered with us alongwith activation.
Process of Free Registration: Simply Click Here and entered your Email ID and followed procedure to subscribe.
How & Where check Activation Link: Open your Mail Box, there is a link of Activation Click There.

Requirement of Software:-
Microsoft Office Excel-2007 or greater is required for running this software.

How to Install :-
Simply download zip file and run.

How to use :-

Enter Employee data in only "EmployeeData" Tab.
Enter Monthwise Salary Data in "Salary Data Entry" Tab.
Enter personal deducations in "Tax Plan" Tab.

Features :

It Calculate Tax and Refund (if, any) & Suggest to Deduct Tax Amount For Nest 3 Months (TDS) for Male, Female, Sr. Citizen.
Generate Monthwise Salary Statement
Generate Form 16 with Annexure "A" or "B" whichever applicable.
Save Information of All Taxpayee.

Facility :

A4 Size Printing Format.

Download Now (Click Here)

Free Download link will be provided through SMS to only registered email at www.gsoftnet.blogspot.com Request can be done by email at ieasypoint@gmail.com or gsoftnet@rediffmail.com (with your activate Mobile No.)

Click Here to Online Tax Calculations
Click Here to See Updated Income Tax Slab For Fin. Year 2011-12 (A.Y. 2012-13)

Calculate Income Tax after Deductions to Pay Balance tax for Assessment Year 2012-13

2012-01-10T06:08:00.003+05:30

Friends, The Details of Salary paid to Salaried Employee and any other income collect and tax dedcuted from the Gross salary or Income how to calculate under the head of Income chargeable under the head 'salaries'.

1. Gross Salary.
2. Less: Allowance u/s. 10 Exempt.
3. Less: Deductions Allowable.
4. Add : Any other income reported by the employee
5. Gross Total Income
6. Less: If Employee/Tax Payee Borrowed the House Loan and Paid Interest on their.
7. Add : Income from House Property
8. Add : Profit or Gains of Business and Profession
9. Add : Income from Capital Gains

Know about updated income Tax slab for Assessment year 2012-13 (Click Her e)

Besides the above incomes, sometimes income of other persons is included in the assessee's Total Income due to clubbing provisions enumerated under section 60 to 64.

The aggregate of income computed under each head, after giving effect to the provisions for clubbing of incomes and set off of losses, is known as "Gross Total Income ". In computing the total income of an assessee, certain deductions are permissible under section 80C to 80U from Gross Total Income. These deductions are however not allowed from the following incomes although these incomes are part of Gross Total Income:

Long-Term Capital Gains.
Short-Term Capital Gain on transfer of equity shares and units of equity oriented fund on or after 01-10-2004 through a recognised stock exchange i.e. short-term capital gain covered under section 111A.
Winnings of lotteries, races, etc.
Incomes referred to in sections 115A,115AB,115AC, 115AD, 115BBA AND 115D.

After Calculating the Above:
1. Less: All Deduction under Chapter-VIA. Know more (Click Here)

These deductions are of two types:

deductions on account of certain payments and investments covered under section 80C to 80GGC.
Deductions on account of certain incomes which are already included under Gross total Income covered under sections 80IA to 80U.

The income arrived at, after claiming the above deductions from Gross Total Income, is known as Total Income. It may also be called Taxable Income. The Total Income thus calculated, should be rounded off to the nearest of Rs. 10/-.