Updated Form-15G and 15H for Asstt. Year 2017-18 with detailed information.

The Income Tax department has been modified the Form No. 15G & 15G as per amended notification No. 11/2013 [F.NO.142/31/2012-SO(TPL)]/SO 410(E) Dated 19.02.13 for the assessment year 2013-14. The New Form No. 15G & 15H is applicable to all Taxpayee who do not want TDS Deduction on their Income  or other under section 203 of the Income-tax Act, 1961.

• No TDS to be deducted by bank in case of –

Interest on saving bank account.

Recurring deposits.

• Bank deducts TDS on interest payment of fixed deposit u/s 194 A.

(As per sec 194 A for payment of interest other than on securities, bank deducts 10% TDS, if payment exceed Rs. 10000 p.a.)

• Form no. 15G and 15H are to be submitted every year with bank. These forms are valid only for the financial year in which you have furnished these forms. If you want to apply for nil TDS in the new financial year, then you will have to resubmit these forms. Form 15H or 15G are meant to prevent TDS and not to avoid tax or file your tax return. You may be required to file your tax return if your total income before the deductions is above the basic tax exemption limit.

• Form 15G/15H is a self declaration form, which is provided by a person resident in India (not being a company or firm) to their deductor that the tax on his estimated total income for the previous year will be NIL.

• Assessee should submit these forms before the end of financial year or before first payment of interest whichever is earlier.

• All banks and financial institutions will deduct TDS if payment of interest on fixed deposits exceeds Rs. 10000 during the financial year.

• Bank will issue TDS certificate also called form 16A which mentions the details of TDS payments with the government.

• The limit of Rs. 10000 is applicable for each branch of a bank. So each branch of the bank will see whether the interest of the whole year on all the FDs exceeds the threshold of 10000.

• If a person is making FD in different branches of same bank then these forms should be deposited at each and every branch where the deposit has been made. For example, if Mr. Ashish has made deposits at three different branches of SBI, then he has to submit the Forms at each branch separately.

• In case of FDs made for longer duration where interest on the FD to be paid on maturity, bank will deduct TDS on interest accrued for the year.

• Please ensure to mention Permanent Account Number (PAN) on the forms while submitting form No. 15G or 15H. In case, taxpayer fails to provide PAN to the deductor, the tax would be deductible @ 20%.

• These Forms are to be submitted in duplicate, one of which is forwarded to the IT department.

• These Forms can only be used for payments like dividends, interest on securities, interest other than interest on securities, national saving schemes, interest on units. For other types of payments (like brokerage, rent etc), these forms cannot be used.

• A bank can track you using unique customer ID. If the combined interest in all the branches of bank exceeds the threshold limit of Rs. 10000, TDS will be deducted if you have not filed form 15G/15H. Therefore, it is best to provide the form then to risk TDS. They can then reclaim the amount by filing their tax returns. The second option is to split fixed deposit across several banks and branches so that TDS exemption limit is not breached.

FORM NO. 15G is used to Declaration under section 197A(1) and section 197A(1A) of the Income-tax Act, 1961 to be made by an individual or a person (not being a company or firm claiming certain receipts without deduction of tax.

FORM NO. 15H is applicable to Declaration under section 197A(1C) of the Income-tax Act, 1961 to be made by an individual who is of the age of sixty years or more claiming certain  receipts without deduction of tax.

Difference between Form 15G and Form 15 H

Form 15G	Form 15H
Submitted by individual below the age of 60 years.	Submitted by senior citizens(60 or above 60 year)
Can be submitted by HUF also.	By individuals only (senior citizens).
Two conditions: The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and The aggregate amount of interest income etc. received during the financial year from all sources should not exceed the basic exemption limit for that relevant year.	One condition: The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and Can be submitted by the senior citizen even though the total interest amount from the payer may exceed Rs. 3.0 Lacs (i.e., the limit of basic exemption limit).
Can be submitted by residents only.	Can be submitted by residents only.

Download Form 15G

Download Form 15H

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Latest Updates on Income Declaration Scheme, 2016

The Income Declaration Scheme, 2016 (hereinafter referred to as ‘the Scheme’) came into effect on 1st June, 2016.  This "the Scheme" is recently amended by CBDT i.e. these rules may be called the Income Declaration Scheme, (Third Amendment) Rules, 2016 and Clarifications on the Income Declaration Scheme, 2016.  The CBDT has issued three sets of FAQs vide Circular Nos. 17, 24, 25 & 27 of 2016.

The Highlights from such changes are as under:

• The CBDT has amended the valuation rules to determine fair value of property declared under IDS on basis of stamp duty valuation.
• Where loans, creditors, advances received, share capital, payables etc. are disclosed in the audited balance sheet but are fictitious in nature and cannot be directly linked to acquisition of a particular asset, then such fictitious liabilities can be disclosed under the IDS as such without linking the same with the investment in any specific asset.
• The income declared under the IDS for an earlier assessment year can be taken into account to explain the related transactions of the subsequent assessment years in assessment proceedings pending before the Assessing Officer provided there is a nexus between the two.
• No adverse action shall be taken against the declarant by the income-tax department solely on the basis of cash deposits made in banks consequent to the declaration made under the Scheme.
• The period of holding of immovable property declared under the IDS shall be taken on the basis of its actual date of acquisition and not from 1.6.2016.
• Payment made under the IDS can be made in cash to the banks. Thus, RBI has been requested to issue instructions to banks to allow payment of tax under the IDS in cash.

Click Here to view All about IDS, 2016

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How to skip TDS on bank fixed deposits ?

Banks have instructions to deduct tax at source on your fixed deposits, should they earn more than Rs.10,000 in a financial year. Here's how you can avoid it altogether.

A bank fixed deposit (FD) is the most popular Indian investment. It’s safe and the 9-10% returns we’ve seen for the past few years are great. But at the end of the day, all your returns are taxed. And if the interest you earn is over Rs.10,000 in one financial year (April to March), it is eligible for tax deduction at source 10.3 per cent of the interest earned. This is regardless of whether you should be paying any tax on it at all. But there are four ways around this:

Distribute the money: The banks can only tax your deposits at source if the interest earned over a financial year is Rs.10,000. The easy way around paying the tax, therefore, is to split the deposits between two banks. It is easy to open an FD in any bank now-a-days, so this is not as inconvenient as it may seem. So long as your interest is less than Rs.10,000 in one bank, you’re safe. Public sector banks do have a problem with you opening an FD if you don’t already have a savings account, but most private ones don’t.

Submit form 15G/15H: If your income is not taxable, the government says your income should not be taxed at source. For this, you need to submit a declaration. If you aren’t a senior citizen, you should submit 15G. This is a simple form that tells the bank that you aren’t liable to pay any tax on the FD, regardless of the amount of interest earned. If you’re a senior citizen without taxable income, the form you’ll need to submit is 15H.

Spread it over two years: In case of a one-time large fixed deposit, one option would be to split the interest over two years. For this, two things are essential – the first is that you would need to have the interest from the FD paid out cumulatively (every quarter or bi-annually). The second is that the investment should be made mid-year, if possible. Consequently, with the interest accrued over two financial years, TDS would not be deducted.

Accounts with different heads: This is one of the many tax advantages of having an HUF account. Despite investing your money here, it is treated as being under another head. Therefore, the two will be treated as separate, even if both are accounts at the same bank.

Source: CA Club India

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Expected 7th Pay for Maharashtra State Government all Employee.

As per Central Government 7th Pay commission Report, Maharashtra State Government also in process to implement 7th Pay to their all Employee’s.  Therefore, the Maharashtra State Government instructed to all Departments who are under the department of Finance Department of Maharashtra State provides information in proforma A,B,C and D immediately in the year 2015.  The major contains of that information is that the Pay Scale in 3rd Pay, 4th Pay,5th Pay and 6th Pay Commission along with post Name and Post Category, Information about Aided Institutions, Expenditure on Salary during the year 2013-14, 2014-15 and 2015-16 as well as expected position of retirement during the year 2015-16, 2016-17 and 2017-18.

Now, the Central Government has been implemented 7th Pay Commission to their employee w.e.f. 01.01.2016 and assure them to pay salary as per 7th Pay for the month of August 2016 which is payable in the month of September 2016.  The balance arrears will be paid during the same financial year.

Thus, as per the 7th pay Commission report of Central Government Maharashtra State Government all Employees are expected to pay as the same.  Therefore, we develops Expected 7th Pay Calculator for Maharashtra State all Employee.

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How to Download TDS Certificate in Form 16B?

Government has made it mandatory w.e.f 01.06.2013 on buyer of property to deduct TDS @ 1% on payment made after 01.06.2013 if Purchase Consideration of the Property exceeds Rs. 50 Lakh. 

Deductor can pay such TDS by any of the following mode:-

Either make the payment online (through e-tax payment option) immediately or make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on www.tin-nsdl.com.

Once the Payment is made now the dedcuctor is required to issue TDS certificate in form 16B to the seller of the Property. Now the question is how to prepare or from where deductor can get such certificate for the purpose of issue to the seller? Answer is deductor can download such certificate from Traces website and issue to the seller.

Procedure to Download TDS certificate in form 16B is as follows:-

1. Login to:

https://www.tdscpc.gov.in/en/deductor-home.html

2. Click on Register New User and you will be asked to provide basic details such as your

• PAN
• Date of Birth
• Last, Middle and First Name and would also be required to further validate details of either tax deducted (option 1) or tax paid by you (option 2).

3. On Validation of details, your account will be created.  User ID by default would be your PAN, You would have the option of providing Pass word of your choice.  A email would be automatically generated providing you an activation link with a second code being text on your mobile.  Having activated your account, it is now ready to be used.  Services currently available are view 26AS statement and down load Form 16B in case you are the buyer of immovable Properties.  May be in near future you are able to download your Form 16 or 16A also through this window.

To download form 16B, go to download, click on request for form 16B, validate details and submit your request.  After some time the same shall be available under download menu. Click on download, click of available and download and save it your computer.

Print, sign and deliver it to the seller.

Source: TDSMAN

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How to boost Take Home Salary by Best Tax Planning Tips for Salaried Employee for Asstt. Year 2017-18 ?

Tax planning for the salaried employees is a matter of planning and discipline. Planning involves making a set of decisions at the start of the financial year and discipline comes in when you are required to adhere to the plan come what may.

If an Individual has done proper Tax Planning to save tax, such deductions would be subtracted from the gross total income and income tax would be levied on the balance income as per the income tax slabs in force -

USE THESE BENEFITS TO BOOST YOUR TAKE HOME SALARY

Irrespective of whether it is your first job or whether you have conquered the corner office, income-tax duly deducted from your monthly salary pinches. The key CTC components which could help reduce your tax liability and boost your take home pay are outlined below. These apply to all non-government employees.

1. House Rent Allowance (HRA)
HRA is the most common CTC component. Those staying in rented accommodation can avail of an exemption against the HRA received and only the balance would be taxable. The exemption is limited to (a) rent paid less 10% of basic salary or (b) 50% of basic salary where the house is situated in any of the four cities of Delhi, Mumbai, Kolkata or Chennai, and 40% of basic salary in other cities or (c) actual HRA received, whichever is the lowest.

If your CTC doesn't contain an HRA component, deduction for rent paid is available from gross taxable income, subject to various limits (maximum deduction Rs 5,000 per month or Rs 60,000 per annum).

Caution point:
For claiming HRA exemption, if your annual rent exceeds Rs 1 lakh, you should obtain not just the rental receipts but a copy of your landlord's PAN card for submission to your accounts department.

2. Leave travel concession (LTC):
It's more than a vacation, it's a tax break -
Your annual holiday within India can get you a tax break. The tax exemption on any reimbursement of your travel expense while on leave is limited to the economy class air fare for the shortest route available to your vacation destination. No exemption is available for expenses such as hotel, local conveyance, etc. Keep the travel bill handy to submit to your accounts department to claim the exemption.

Hot tip:
LTC is allowed to you as a salaried employee in respect of two journeys performed in a block of four calendar years. The current block of four years commenced on January 1, 2014. So if you haven't taken that much-needed break last year, do so now. Keep proper tabs, retain relevant travel bills and claim your LTC.

Caution point:
Your travel expenses for a holiday abroad are not eligible for a tax break. If you are planning a long vacation covering destinations in India as well as a foreign country with one air-ticket, the tax man may not allow a tax break even for your cost of journey within India.

3. Medical Allowance:
Medical Allowance is levied up to Rs.15,000 provided all bills for the same are furnished by the employees to the employer.

4. Conveyance Allowance:
For conveyance allowance to be made tax free you need to do nothing to prove. Attending work is good enough we guess!

INVESTING/SAVINGS FOR TAX BENEFITS.

You can plan to maximize your tax savings and reduce income tax liability by availing the benefit of provisions relating to deduction from taxable income under various sections of Income Tax Act.

Income Tax Deductions for Fin. Year 2016-17, this list can help you in planning your taxes

1. Section 80C
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80C are as Insurance, PPF, Mutual Funds, 5 years Tax saving Deposits, Tuition Fees, Housing loan repayments Etc.

2. Section 80CCC
Contribution to annuity plan of Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.

3. Section 80CCD
Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be upto 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015. Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.

4. Section 80D
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).

5. Section 24 (B)
The interest component of home loans is allowed as deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as tax deduction. (Read: Understanding Tax Implications of Income from house property)

6. Section 80EE
This is a new proposal which has been made in Budget 2016-17. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
1. The home loan should have been sanctioned in FY 2016-17.
2. Loan amount should be less than Rs 35 Lakh.
3. The value of the house should not be more than Rs 50 Lakh &
4. The home buyer should not have any other existing residential house in his name.

7. Section 80GG
As per the budget 2016 proposal, the Tax Deduction amount under 80GG has been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).

Conclusion:
It is prudent to avoid last minute tax planning. Do not invest in unwanted life insurance policies or in any other financial products just to save taxes. It is better you plan your taxes based on your financial goals at the beginning of the Financial Year itself. Plan your taxes now, instead of waiting until late December 2016 (or) January 2017.

It is OK to pay some taxes when you cannot save or cannot invest in right financial products.  But, do not invest just to save TAXES. The cost of buying wrong financial products may outweigh the cost of taxes. Tax Planning is not a goal but a tool. Remember “Tax Planning alone is not Financial Planning.” Also, kindly understand the tax treatment of the selected investment products across the different investment stages (i.e., investment, accrual & withdrawal) and then invest.  I believe that the above list is useful for your Tax Planning purposes. The above ‘Income Tax Deductions 2016-17’ are applicable for financial year 2016-2017 (Assessment Year 2017- 2018).

Note:
The above stated exemptions/deductions for salaried employees are the most useful exemptions. However, there are various other exemptions as well but are not commonly used.

Source: CAclubindia

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7th Pay Salary Basic Pay Calculations - Simple & Easy Method.

As per Office Memorandum of Government regarding 7th Pay Commission implementation, the salary for the month August, 2016 paid in the month of September, 2016 to CG Employee by 7th Pay Commission. Therefore, as per report of 7th Pay Commission some Easy and Simple method are as follows:

How to calculate for Pay fixation from 6th Pay to 7th Pay in new Pay Scale ?

We here illustrate the easy and simple method through 6 Steps to calculate our 7th CPC New Pay and Allowances to know your self.

If X currently drawing Grade Pay Rs. 4200 and his Pay in the Band Pay Rs. 10890 as on 01.01.2016. To calculate your Basic Pay and Allowance follow the steps given below.

Step-I
Calculate your sixth CPC basic Pay
(Grade Pay + Band Pay) = 4200 + 10890 = 15090.00

Step-II
Multiply the above figure with 7th CPC Fitment Formula 2.57
15090 x 2.57 = 38781.30
(Paisa to be rounded off to the nearest Rupee)
The Ans. is = Rs.38781

Step-III
Match this Answer with Matrix Table (Given Below) Figures assigned in Grade Pay column Rs.4200

There is no matching figure we arrived above in this matrix, so the closest higher figure assigned in the Grade Pay column can be chosen ie is Rs. 39900

So your New 7th CPC Basic Pay is Rs. 39900.

Step-IV
Identify your HRA [See : 7th Pay commission recommendation on HRA]

HRA has been revised as 24%, 16% and 8% for 30% , 20% and 10% respectively
So if you are in 30% HRA Bracket, your HRA in 7th CPC is 24% viz.

If you are taking HRA in Slab 30%, your revised HRA is 24%.

Find the 24% of the Basic Pay = 39900 x 24/100 = 9576

Your new HRA is Rs. 9576

Step-V
Identify your TPTA (Transport Allowance)

7th CPC Recommends Transport Allowance for three Category of Employees for Two Types of Places

If you are living in A1 and A classified cities, the T.A. as per below chart :

Grade Pay 1800 to 1900   - Rs. 1350 + DA
Grade Pay 2000 to 4800   - Rs. 3600 + DA
Grade Pay 5400 and above - Rs. 7200 + DA

If you are living other than A1 and A Classified Cites, the T.A. as per blow chart :
Grade Pay 1800 to 1900   - Rs. 900 + DA
Grade Pay 2000 to 4800   - Rs. 1800 + DA
Grade Pay 5400 and above - Rs. 3600 + DA
And since your Grade Pay is 4200 you fall in Second category

i.e. Grade Pay 2000 to 4800 – Rs 3600 + DA
Your TPTA is Rs. 3600/- + (D.A. is Nil as on 1.1.2016)
Step-VI
(Sine DA will be Zero from 1.1.2016 So no need to calculate the DA to calculate 7th Pay and Allowances from 1.1.2016)

Count your Gross Salary as on 01-01-2016

New Basic Pay + HRA+TPTA = 39900+9576+3600 = 53076

Your revised 7th CPC Grass pay as on 1.1.2016  =  Rs.53076

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GST Bill, 2016 with Constitutional Amendment cleared in Rajya Sabha

On Aug 3, 2016, Rajya Sabha discussed amendments to Constitution Bill for Goods and Service Tax i.e. Constitutional (One Hundred and First Amendment) Bill, 2016 and finally the most crucial bill passed in Rajya Sabha.GST will be introduced in the country after a long journey of 13 years as it was first discussed in the Kelkar Task Force report on indirect taxes in 2003.

This amendment bill was cleared since Government agreed to drop 1% additional tax and gave assurance that it will compensate States for any revenue loss incurred due to GST rollout. There will be a huge impact of GST on common man. Goods like Small Cars, Two wheeler, Movie Tickets, Electronic Items, etc., will be cheaper. But Air Travel, Insurance, Textile, Jewellery, Mobile Calls, Cigarettes will be costlier.

Click here to read CONSTITUTION (ONE HUNDRED AND FIRST AMENDMENT) BILL, 2016
Click here to read Relevant Amended PROVISIONS OF CONSTITUTION OF INDIA

Source: TAXMANN

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Latest FVU and RPU Utility Ver. 5.1 and 2.147 for Asstt. Year 2017-18

TIN-NSDL has provided e-TDS/e-TCS Returns prpared utility regarding Quarter-1 (Q1) i.e. File Validation Utility (FVU) for for Asstt. Year 2017-18 with new updates.  The new updates for Asstt. Year 2017-18  as well as for Asstt. Year 2010-11 who are yet not submit the TDS Return.  The New Section Code i.e. 194LBC has been added for Income in respect of Investment in securitizaton trust.  The key Features of FVU Ver. 5.1 and 2.147 are as follows with download facility :

File Validation Utility (FVU)

Key Features – File Validation Utility (FVU) version 5.1

• New Section code 194LBC (Income in respect of investment in securitization trust) has been added under list of sections available under Form 26Q and 27Q.
• New nature of collection codes 206CL (Sale of Motor vehicle), 206CM (Sale in cash of any goods (other than bullion/jewelry)) and 206CN (Providing of any services (other than Ch-XVII-B)) has been added under list of collection codes available under Form 27EQ.
• This version of FVU is applicable with effect from June 28, 2016.

Download FVU Ver. 5.1 Click Here

Key Features – File Validation Utility (FVU) version 2.147

• New Section code 194LBC (Income in respect of investment in securitization trust) has been added under list of sections available under Form 26Q and 27Q.
• New nature of collection codes 206CL (Sale of Motor vehicle), 206CM (Sale in cash of any goods (other than bullion/jewelry)) and 206CN (Providing of any services (other than Ch-XVII-B)) has been added under list of collection codes available under Form 27EQ.
• This version of FVU is applicable with effect from June 28, 2016.

Download FVU Ver. 2.147 Click Here

NSDL e-TDS/ TCS Return Preparation Utility

Key Features – Return Preparation Utility (RPU) version 1.6

• New Section code 194LBC (Income in respect of investment in securitization trust) has been added under list of sections available under Form 26Q and 27Q.
• New nature of collection codes 206CL (Sale of Motor vehicle), 206CM (Sale in cash of any goods (other than bullion/jewelry)) and 206CN (Providing of any services (other than Ch-XVII-B)) has been added under list of collection codes available under Form 27EQ.
• Incorporation of latest File Validation Utility (FVU) version 5.1 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.147 (applicable for TDS/TCS statements from FY 2007-08 up to FY 2009-10).

Download RPU Ver. 1.6 Click Here

NSDL e-Gov RPU_e-Tutorial (Version 1.7)

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Important Due Dates in the Month of August, 2016

We all Taxapyee well known about Income Tax alert.  Just start the month of August, 2016 and Asstt. Year 2017-18 it is more important to know all the due dates for the month of August, 2016 specially for Individual, HUF, Corporate taxpayers and others Taxpayers/TDS or TCS Deductors are as follows:

Due Dates in August, 2016

7 August 2016
​Due date for deposit of Tax deducted/collected for the month of July, 2016.  However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan
 

7 August 2016 

​Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of July, 2016
 

15 August 2016 

​Quarterly TDS certificate (in respect of tax deducted for payments other than salary) by a person being an office of the Government for the quarter ending June 30, 2016
 

22 August 2016
​Due date for issue of TDS Certificate for tax deducted under  section 194-IA​ in the month of July, 2016

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Expected D.A. from July-2016 in 7th Pay Commission will 2% and D.A. Calculation Formula.

DA calculator for Expected DA from July 2016 in Sixth and 7th Pay Commission

There are three main factors which determine the increase in percentage of DA in every pay Commission

1.DA calculation Formula
2.AICPIN for Industrial Workers
3. Base Average Index

1. Formula for DA calculation

12 Months AICPIN Average - Base Average Index

--------------------------------------------- X 100 = (D.A.) Percentage of Increase

            Base Average Index

2. AICPIN for Industrial Workers

The Consumer Price Index for Industrial Workers (CPI-IW) is an important statistical/economic indicator. It was first introduced on scientific lines with base 1960=100 which was based on the results of Family Living Survey conducted in 1958-59 at 50 industrially important centres. The series was then, updated on base 1982=100 and a revision in 1999-2000 has further updated the base on 2001=100. The current series of CPI-IW with base year 2001=100 covers 78 industrially important centers spread across the country

3. Base Average Index

After neutralization of DA to revise the Pay and Allowance in Every Pay Commission, the Base Average Index will be modified taking into the account of 12 Months AICPIN points of previous year to neutralization of DA

1. From 1996 onwards, the average base Index was 306.33 (with base 1982=100)

How 306.33 was arrived?

To calculate the DA in Fifth pay commission, the 12 Month Average of AICPIN for the year 1995 was taken. The 12 months AICPIN Average of 1995 was 306.33

2. From 2006 onwards, the Avarage Base Index is 115.76 (with Base 2001 = 100)

How 115.76 was arrived…?

The Government has developed a new series with base 2001, with effect from January 2006. Back data series with base 2001 can be generated using linking factor 4.63

So the AICPIN Average of 2005 (with base 1982=100) i.e 536 had to be modified using linking factor 4.63 to adopt the new series in DA calculation. Thus the Base Index Number 115.76 was arrived

3. For 7th Pay Commission what will be the Base Index…?

As the 7th Pay commission recommendations will be implemented with effect from 1.1.2016, the AICPIN average of 2005 will be the Base Index for calculation of DA for 7th Pay Commission

So formula for Calculation of DA in 7th Pay Commission is

12 Months AICPIN Average - 261.4

-------------------------------- X 100 = (D.A.) Percentage of Increase

              261.4

Accordingly, the following Calculator will calculate the Sixth CPC and 7th CPC Expected DA from July 2016.

Source : paynews

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Expected D.A. from July-2016 will be increased by 7% i.e. from 125% to 132%.

Recently, AICPIN had issued a press release on 29th July., 2016 and in that Consumer Price Index 2 points decrease i.e. 275 to 277.  As per this press Release report the Additional Dearness Allowance is hiked by 7% from July-2016 i.e. from 125% to 132% confirmed. The press Release are as under:

No.5/1/2016- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

‘CLEREMONT’, SHIMLA-171004
DATED: 29th July, 2016

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – June, 2016

The All-India CPI-IW for June, 2016 increased by 2 points and pegged at 277 (two hundred and seventy seven). On 1-month percentage change, it increased by (+) 0.73 per cent between May, 2016 and June, 2016 when compared with the increase of (+) 1.16 per cent between the same two months a year ago.

The maximum upward pressure to the change in current index came from Food group contributing (+) 2.51 percentage points to the total change. At item level, Rice, Wheat, Besan, Black Gram, Gram Dal, Groundnut Oil, Eggs (Hen), Goat meat, Poultry (Chicken), Milk, Garlic, Onion, Tomato, Potato Brinjal, Cabbage, other seasonal Vegetables, Tea Leaf, Doctors’ Fee, Petrol, Repair Charges, etc. are responsible for the increase in index. However, this increase was checked by Arhar Dal, Fish Fresh, Coconut, Mango (Ripe), Electricity Charges, putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 6.13 per cent for June, 2016 as compared to 6.59 per cent for the previous month and 6.10 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 8.33 per cent against 8.48 per cent of the previous month and 6.67 per cent during the corresponding month of the previous year.

At centre level, Mercara reported the maximum increase of 13 points followed by Vadodara (12 points), Darjeeling and Ahmedabad (10 points each), Bhavnagar (9 points) and Nagpur (8 points). Among others, 7 points increase was observed in 2 centres, 6 points in 5 centres, 5 points in 5 centres, 4 points in 5 centres, 3 points in 12 centres, 2 points in 15 centres and I point in 14 centres. On the contrary, Quilon recorded a maximum decrease of 6 points followed by Chennai (4 points), Salem (3 points) and Coonoor (2 points). Among others, 1 point decrease was observed in 3 centres. Rest of the 7 centres’ indices remained stationary.

The indices of 34 centres are above All-India Index and other 44 centres’ indices are below national average.

The next issue of CPI-IW for the month of July, 2016 will be released on Wednesday, 31st August, 2016. The same will also be available on the office website www.labourbureaunew.gov.in.

(SHYAM SINGH NEGI)
DEPUTY DIRECTOR GENERAL

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Date of 1st Quarter for Fin. Year 2016-17- DAVT Extended to 31st August, 2016

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI

DEPARTMENT OF TRADE AND TAXES

(pOLICY BRANCH)

VYAPAR BHAWAN, I.P.ESTATE, NEW DELHI - 110 002

No.F.7(420)/VAT/Policy/2011/PF/518-24

Dated: 28/7/16

CIRCULAR NO. 11 of 2016-17

Sub: Filing of online return for first quarter of 2016-17 - Extension of period thereof.

In exercise of the powers conferred under Rule 49A od the Delhi Value Added Tax Rules 2005, I, S.S. Yadav, Commissioner, Value Added tax, do hereby extend the last date of filing of online / hard copy of first quarter return for the year 2016-17 in Form DVAT-16, DVAT-17 and DVAT-48 along with required annexure/enclosures to 31/08/2016.

However, the tax due shall continue to be paid in the usual manner as per the provisions of sections 3(4) of the Delhi Value Added Tax Act, 2004. The dealers filing the returns through digital signature need not file hard copy of the return / Form DVAT-56.

S.S.Yadav

Commissioner, VAT

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Download 7th Pay Fixation and Payment Calculator

Recently, Government of India, Implementation Cell, 7th Pay Commission has issued an Office Memorandum on 29th July, 2016 for fixation of pay and payment of arrears.  This Pay Fixation utility helps you for pay fixation and payment calculation.

How to Calculator you Salary in 7th Pay Commission ?

1. Enter Your Name.
2. Enter Your Department.
3. Enter Your Designation.
4. Select Your present 6th Pay Pay Band and Grade Pay.
5. Enter your present 6th Pay in pay band (Don't merge your grade pay)
6. Select Your present H.R.A. Rate
7. Enter your All other Allowances.

Download 7th Pay Calculator Click Here

Disclaimer: This 7th Pay Calculator is based on Press release issued on Government’s decision on 7th Pay Commission recommendations on 29th June, 2016. Readers are advised to verify notification on Govt’s decision regarding 7th Pay Commission recommendations for the correctness of New 7th CPC Pay, allowances and arrears.

7th CPC fixation of pay and payment of arrears - instructions regarding.

No.1-5/2016-IC
Government of India/Bharat Sarkar
Ministry of Finance/ Vitaa mantralaya
Department of Expenditure /Vyaya Vibhag
(Implementation Cell, 7th CPC)

Room No. 214, The Ashok

New Delhi, the 29th July, 2016

OFFICE MEMORANDUM

Subject: Implementation of the recommendations of the 7th Central Pay Commission — fixation of pay and payment of arrears – instructions – regarding.

The undersigned is directed to refer to the Government of India, Ministry of Finance, Department of Expenditure’s Resolution No. 1-2/2016-IC dated 25.07.2016, bringing out the decisions of the Government on the recommendations of the 7th Central Pay Commission as well as the consequent promulgation of the Central Civil Services (Revised Pay) Rules, 2016, notified vide G.S.R No. 721(E) dated 25th July, 2016 regarding fixation of pay in the revised pay structure effective from 01.01.2016 and to say the provisions governing such fixation of pay have been clearly enunciated in the said Rules.

2. Accordingly, in pursuance of the CCS (RP) Rules, 2016, appropriate necessary action to fix the pay of the employees covered thereunder in the revised pay structure needs to be carried out forthwith in accordance with the provisions contained therein. In order to facilitate a smooth and systematic fixation of pay, a proforma for the purpose (Statement of Fixation of Pay) is enclosed at Annexure. The statement of fixation of pay in revised pay structure as per CCS (RP) Rules, 2016 be prepared in triplicate and one copy thereof be placed in the Service Book of the employee concerned and another copy made available to the concerned accounting authorities [Chief Controller of Accounts/Controller of Accounts/Accounts Officer] for post-check.

3. The revised pay structure effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned from 01.01.2016 in the pre-revised pay structure. Thus, Dearness Allowance in the revised pay structure shall be zero from 01.01.2016. The rate and the date of effect of the first installment of Dearness Allowance in the revised pay structure shall be as per the orders to be issued in this behalf in future.

4. The decision on the revised rates and the date of effect of all Allowances (other than Dearness Allowance), based on the recommendations of the 7th Central Pay Commission shall be notified subsequently and separately. Until then, all such Allowances shall continue to be reckoned and paid at the existing rates under the terms and conditions prevailing in the pre-revised pay structure as if the existing pay structure has not been revised under the CCS (RP) Rules, 2016 issued on 25.07.2016

5. The contributions under the Central Government Employees Group Insurance Scheme (CGEGIS) shall continue to be applicable under the existing rates until further orders.

6. The existing system on interest free advances for medical treatment, Travelling Allowance for family of deceased, Travelling Allowance on tour or transfer and Leave Travel Concession shall continue as hitherto.

7. The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules, 2016 with effect from 01.01.2016 shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay. DDOs/PAOs shall ensure that action is taken simultaneously in regard to Government’s contribution towards enhanced subscription.

8. With a view to expediting the authorization and disbursement of arrears, it has been decided that the arrear claims may be paid without pre-check of the fixation of pay in the revised scales of pay. However, the facilities to disburse arrears without pre-check of fixation of pay will not be available in respect of those Government servants who have relinquished service on account of dismissal, resignation, discharge, retirement etc. after the date of implementation of the Pay Commission’s recommendations but before the preparation and drawl of the arrears claims, as well as in respect of those employees who had expired prior to exercising their option for the drawal of pay in the revised scales.

9. The requirement of pre-check of pay fixation having been dispensed with, it is not unlikely that the arrears due in some cases may be computed incorrectly leading to overpayments that might have to be recovered subsequently. Therefore, the Drawing & Disbursing Officers should make it clear to the employees under their administrative control, while disbursing the arrears; that the payments are being made subject to adjustment from amounts that may be due to them subsequently should any discrepancies be noticed later. For this purpose, an undertaking as prescribed as per a “Form of Option” under Rule 6(2) of the
CCS(RP) Rules, 2016 shall be obtained in writing from every employee at the time of exercising option under Rule 6(1) thereof.

10. In authorizing the arrears, Income Tax as due may also be deducted and credited to Government in accordance with the instructions on the subject.

11. On receipt of the necessary options, action for drawal and disbursement of arrears should be completed immediately.

sd/-

(R.K.Chaturvedi)

Joint Secretary to the Government of India

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Penalty or Interest causes by Late Filing of Income Tax Return - Asstt. Year 2016-17

We all are well known the importance of Income Tax Filing.  Though this some tax payee neglect to file income tax return in due date.  Therefore, all the Tax Return Filers i.e. Tax Consultant, Business Men and special Salaried Employee (Taxpayer) who are filed non-audit and non-corporate Assessee's Income Tax Return by extended due date  i.e. 05th August, 2016 for Asstt. Year 2016-17. The details about Late filing and due date of Income Tax Return are as under:

Due date of filing of income tax return for Assessment Year 2016-17 :

• The due-date for filing of returns for non-audit & non-corporate assessee’s is 31st July of the assessment year 2016-17 which extended to 05th August, 2016.
• In case of an assessee, being a partner of a firm liable to audit u/s. 44AB, the applicable due-date shall be 30th September of the assessment year (The said limits are as per the provisions of section 139(1) of the Act).
• In the case of an assessee liable to submit a report u/s. 92E (Transfer Pricing Report) of the Act, the applicable due-date is 30th November of the assessment year.

Income Heads covered under due date 31st July, 2015

• Salary, Pension,
• Income from other source like interest income,
• Income from capital gain, 
• Income from house property and 
• Income from person owning small business and not liable to get their accounts audited are covered.

Major Effects of Non Filing of Income Tax Return by Due Date for Fin.Year 2013-14, Asstt. Year 2014-15 and onwards ?

• Losses can not be carry forward.
• Interest u/s. 234A will be charges @ 1% PM applicable.
• Income Tax Return e-Filing is Mandatory, if Annual Taxable Income is not less than 5 Lakhs.
• Income Tax Return can not be revised at any cost if filied not in time.

What happen next when Taxpayee not file Income Tax Return in Due Date ?

• There is no any penalty on late filing of Income Tax Return.

What says Income Tax section 271F regarding late filing of Return ?

If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees

so this section says end of relevant assessment year, for previous year 2013-14, assessment year is 2014-15 and it will ends on 31.03.2015 and onwards, means there is no penalty for late filing of income tax return up to 31.03.2015 and onward and after that assessing officer(AO) can impose a penalty of Rs. 5000, and that is also his (AO) power which he may or may not exercise after giving due hearing to the assessee.

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Due Date for filing of Income Tax Return extended for Asstt. Year 2016-17

Recently, CBDT has issued a press information on 29th July, 2016 regarding extension of due date for filing of Income Tax Return for Asstt. Year 2016-17 i.e. from 31st July, 2016 to 5th August, 2016.  The details are as under :

Press Information Bureau

Government of India

Ministry of Finance

29-July-2016 20:47 IST

As per provisions of Section 139(1) of Income-tax Act 1961, Central Board of Direct Taxes extends the due date for filing returns of Income for Assessment Year 2016- 2017 from 31st July, 2016 to 5th August,2016 , in case of taxpayers throughout India who are liable to file their Income-tax by 31st July, 2016.

This extension is given in order to avoid any inconvenience to the taxpayers while making payment of taxes pertaining to returns of income for Assessment Year 2016- 2017 by 31st July, 2016 due to reports of Bank strike on 29th July,2016(Friday) and 31st July,2016 (Sunday), being a Bank-Holiday.

Due date extension in J & K is 31.08.2016

As per provisions of Section 119 of Income-tax Act, 1961(‘Act’) , Central Board of Direct Taxes extends the due date for filing income-tax returns from 31st July, 2016 to 31st August ,2016 , in case of Income-tax assessees in the State of Jammu & Kashmir who are required to file their return under Section 139(1) of the Act. This extension is given on consideration of reports of dislocation of general life in certain areas of the State of Jammu & Kashmir.

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