Information About VC and Seek VC Adjournment.

FAQs for Seek VC & Seek VC adjournment.

What is VC?

Answer: VC stands for ‘Video Conferencing’. Using the VC facility, an assessee is enabled to express or submit one’s response orally before an Income Tax Authority who has initiated the proceeding and expect the response from the user.

This facility has been enabled by the department as a substitute for personal appearance/hearing before an Income Tax Authority.

The facility for oral submission is in addition to submitting response in writing

Who can avail VC?

Answer: It can be availed by only those taxpayers for whom a hyperlink VC is enabled against a notice, as appearing in the e-Proceeding module, under the column “Video Conferencing”.

Login to e-Filing->e-Proceeding->Select Proceeding Name ->

What is the process to seek VC facility?

Answer: If a VC hyperlink is found against a notice issued by the department under the column “Video Conferencing”, the user needs to click on that hyperlink.

On clicking, another window appears with the notice details prefilled

• Click on the hyperlink “Seek VC”.

• On click on the same, a window appears. The user needs to choose the appropriate reason from the drop-down values. If there are no predefined dropdown, the user may select “Others” and enter the description in text box.

• Thereafter, a text box will appear wherein user needs to provide reasons in detail for seeking VC and also can provide the date on which the user desires to submit oral submission. (Maximum 4000 characters)

• If the user wants to upload any document supporting such a claim, there is provision to attach the same by click the button “choose File”. The document that are PDF format can only be attached and should not exceed 5 MB.

• Now Click, submit button. A success message will be displayed on submission of request.

For Download Click Here

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TDS Compliance Basic Principles and its Detailed Information.

CPC (TDS) has issued a advisory communications specially for TDS Deductor regarding TDS Compliance.  The Central Processing Cell has extended registered Deductors over 3 crore and therefore, CPC (TDS) suggest the Basic Principles of TDS Compliance and Complete TDS Compliance which is as under:

The Basic principles of TDS compliance are as follows:

• Deduction/Collection of tax at correct rates at right time
• TDS needs to be deposited timely every month.
• Accurate Reporting of data related to tax deductions/ collections made
• Filing of the quarterly TDS return within due time.
• Verification and Issuance of TDS Certificates within stipulated time.
• During the past year, CPC (TDS) released a host of useful utilities at TRACES, including the following, that we feel would be helpful in our journey together towards achieving default-free TDS Compliance:
• CPC (TDS) is now sending "Intermediate Default Communication" for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
• User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).
  
• Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action
• The Deductor's Dashboard provides you all necessary information to assist you in "Compliance Self-Assessment" and to take appropriate action.
• Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
• PAN Verification and Consolidated TAN - PAN File facility on TRACES can be used for verifying the deductees.
• The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

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Amendment in TDS for Fin. Year 2017-18

Budget 2017 – Changes in TDS Provisions

1.Deduction of tax at source in the case of certain Individuals and Hindu undivided family

 The existing provisions of section 194-I of the Act, inter alia, provide for deduction of tax at source at the time of credit or payment of rent to the account of the payee beyond a threshold limit. It is further provide that an Individual or a Hindu undivided family who is liable for tax audit under section 44AB for any financial year immediately preceding the financial year in which such income by way of rent is credited or paid shall be required to deduction of tax at source under this section.

Therefore, under the existing provisions of the aforesaid section, an Individual and HUF, being a payer (other than those liable for tax audit) are out of the scope of section 194-I of the Act.

In order to widen the scope of tax deduction at source, it is proposed to insert a new section 194-IB in the Act to provide that Individuals or a HUF (other than those covered under 44AB of the Act), responsible for paying to a resident any income by way of rent exceeding fifty thousand rupees for a month or part of month during the previous year, shall deduct an amount equal to five per cent. of such income as income-tax thereon.

It is further proposed that tax shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

In order to reduce the compliance burden, it is further proposed that the deductor shall not be required to obtain tax deduction account number (TAN) as per section 203A of the Act. It is also proposed that the deductor shall be liable to deduct tax only once in a previous year.

It is also proposed to provide that where the tax is required to be deducted as per the provisions of section 206AA, such deduction shall not exceed the amount of rent payable for the last month of the previous year or the last month of the tenancy, as the case may be.

This amendment will take effect from 1st June, 2017.

2.Extension of eligible period of concessional tax rate on interest in case of External Commercial Borrowing and Extension of benefit to Rupee Denominated Bonds
The existing provisions of section 194LC of the Act provide that the interest payable to a non-resident by a specified company on borrowings made by it in foreign currency from sources outside India under a loan agreement or by way of issue of any long-term bond including long-term infrastructure bond shall be eligible for concessional TDS of five per cent.

It further provides that the borrowings shall be made, under a loan agreement at any time on or after the 1st July, 2012, but before the 1st July, 2017; or by way of any long-term bond including long-term infrastructure bond on or after the 1st October, 2014 but before the 1st July, 2017, respectively.

Representations have been received requesting for extension of concessional rate of TDS under sections 194LC of the Act to boost the economy by way of introduction of foreign capital.

Therefore, it is proposed to amend section 194LC to provide that the concessional rate of five per cent. TDS on interest payment under this section will now be available in respect of borrowings made before the 1st July, 2020.

This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years.

Further, consequent upon demand from various stakeholders for granting benefit of lower rate of TDS to rupee denominated bonds, a Press Release dated 29th October, 2015 was issued clarifying that TDS at the rate of 5 per cent would be applicable to these bonds in the same way as it is applicable for off-shore dollar denominated bonds.

In order to give effect to the above, it is further proposed to extend the benefit of section 194LC to rupee denominated bond issued outside India before the 1st July, 2020.

This amendment will take effect retrospectively from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent years.

3.Extension of eligible period of concessional tax rate under section 194LD

The existing provisions of section 194LD of the Act, provides for lower TDS at the rate of five per cent. in the case of interest payable at any time on or after 1st June, 2013 bue before the 1st July, 2017 to FIIs and QFIs on their investments in Government securities and rupee denominated corporate bonds provided that the rate of interest does not exceed the rate notified by the Central Government in this behalf.

Considering the representations received from stakeholders, it is proposed to amend section 194LD to provide that the concessional rate of five per cent. TDS on interest will now be available on interest payable before the 1st July, 2020.

This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years

4.Simplification of the provisions of tax deduction at source in case Fees for professional or technical services under section 194J
The existing provisions of sub-section (1) of section 194J of the Act, inter-alia provides that a specified person is required to deduct an amount equal to ten per cent. of any sum payable or paid ( whichever is earlier) to a resident by way of fees for professional services or fees for technical services provided such sum paid/payable or aggregate of sum paid/payable exceeds thirty thousand rupees to a person in a financial year.

In order to promote ease of doing business, it is proposed to amend section 194J to reduce the rate of deduction of tax at source to two per cent. from ten per cent. in case of payments received or credited to a payee, being a person engaged only in the business of operation of call center.

This amendment will take effect from the 1st day of June, 2017.

Source: TDS Man

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No Advance Tax No Credit of TDS under PMGKY - CBDT FAQs

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 18th January, 2017.

PRESS RELEASE

Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016

The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) has commenced on 17th December, 2016 and is open for declarations up to 31st March, 2017.

CBDT has received queries from stakeholders seeking clarifications about various provisions of the Scheme. The issues raised have been examined and a set of twelve FAQs has been issued on 18.01.2017 vide Circular No.2 of 2017. The Circular inter alia provides

 clarifications on issues such as the deposits eligible for being declared under the Scheme, eligibility for making a declaration under the Scheme, adjustment of seized cash against the payment of tax,surcharge and penalty under the Scheme etc.

The Circular has been uploaded on the official website of the Income-tax Department www.incometaxindia.gov.in for viewing.

(Dr. Binod Kumar Sinha)

Commissioner of Income Tax

(Media & Technical Policy)

& Official Spokesperson, CBDT

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All about Income Tax Refunds - FAQs

From which date the refund banker has been implemented?

The refund banker has been implemented from January 24, 2007.

In which cities the refund banker has been implemented ?

The refund banker facility is operational for non-corporate taxpayers assessed all over India.

Who will send the refund to me?

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

How will the refund be sent to me?

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

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

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

How can I know the status of my refund?

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

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

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

If I have shifted my residence whom should I contact for updating my correspondence address for receipt of refund?

The tax payer should contact its Assessing Officer and inform about the change in the correspondence address.

If my bank account has been closed how will I get refund credit into the account?

In case of change or updation in the bank account number the taxpayer should provide the correct account number along with the MICR code where credit is to be effected to the Assessing Officer.

Whom do I contact if the refund dispatched has not been received?

The tax payer can contact its local post office with the speed post ref no displayed at the NSDL-TIN website

I have received the physical ECS refund advice and status of refund is “paid” on website of refund status track but my account has not been credited. Whom do I contact?

In case credit is not effected in the taxpayer account through ECS but the refund advice has been received by the taxpayer AND the status shown is “paid”- in that case, the tax payer should contact his bank or SBI. You should contact SBI at the following address.

Cash Management Product (CMP)

State Bank of India

SBIFAST

31, Mahal Industrial Estate

Off Mahakali Caves Road

Andheri (East)

Mumbai - 400 093.

Phone Number: 18004259760 or email at 

I have neither received the physical ECS refund advice and status of refund is “unpaid” on website track. Whom do I contact?

The tax payer should provide the correct account number and MICR code to concerned Assessing officer, where credit is to be effected. The Assessing Officer will inform SBI to send a fresh refund cheque to the taxpayer.

If the date of encashing the refund cheque expires, whom should I contact?

The tax payer should contact their Assessing Officer as well as CMP SBI at the below address:

Cash Management Product (CMP)

State Bank of India

SBIFAST

31, Mahal Industrial Estate

Off Mahakali Caves Road

Andheri (East)

Mumbai - 400 093.

Phone Number: 18004259760 or email at 

How do I rectify any mistakes in the name, assessment year, PAN, account number printed on the refund cheque delivered to me?

In case of any mistakes on the refund cheque delivered to you, the following should be done:

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

If somebody else’s refund cheque / advice is delivered to me what should I do?

You should contact SBI at the following address and return the refund cheque / advice.

Cash Management Product

State Bank of India

SBIFAST

31, Mahal Industrial Estate,

Off Mahakali Caves Road,

Andheri (East)

Mumbai - 400 093

Phone Number: 18004259760 or email at 

Is there any method available to know whether the refund record has been generated for the taxpayer?

The taxpayer can track the status of its refund from the NSDL-TIN website www.tin-nsdl.com by clicking on “Status of Tax Refunds”.

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

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

Whom do I contact for queries related to payment of refund which has been processed by ITD?

For any payment related query the taxpayer should contact SBI at 18004259760 or email at .

Whom should I contact for refund related queries?

For any refund related query the tax payer should contact Aaykar Sampark Kendra at 0124 2438000 or email at .

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

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CPC (TDS) reminder for filing, where TDS has been paid, however, Quarterly TDS Statements are not filed.

As per the records of the Centralized Processing Cell (TDS), you have made payments for Tax Deducted, however, no TDS Statements have been filed for any Quarter in FY 2013-14 as yet. In this regard, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

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

1. Mandatory filing of TDS Statements:

Please refer to the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:

Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:

• Statement of deduction of tax under section 192 in Form No. 24Q;
  

• Statement of deduction of tax under sections 193 to 196D in-
   • Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
   • Form No. 26Q in respect of all other deductees.
  

It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

2. Implications of Non/ Late filing of TDS Statements:

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

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

3. Actions to be taken:

• Please file the relevant TDS Statement without any further delay.

• If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to "Statements/ Payments" menu and submit details under "Declaration for Non-Filing of Statements".

• Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.

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

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

CPC (TDS) TEAM

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Latest TDS/TCS Rate Chart for Fin. Year 2013-14.

TDS and TCS rate changes for financial year 2013-14 and interest provision for late deposit of TDS/TCS.  TDS rate applicable in case of Non submission of PAN, on service tax or not, on job work or not, which rate is applicable to individual, HUF etc. Who should deduct TDS ? Who should not deduct TDS ?

Deduction of TDS/TCS by correct rate is very important for TAX Deductor and Collector.  On late filing of TDS/TCS Return penalty deposit and Dis-allowance of Expenses. Tax deduction rates chart (TDS rate chart)  for Financial year 2013-14 is as below:

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Silent Features of TDS or TCS for Asstt. Year 2014-15.

CBDT had issued many circulars/notification regarding collection of Tax as TDS or TCS. First of all, Tax Deductee or Collectee knows "Tax Collection Mechanism". An assessee requires to pay tax on his income by way of Direct Payment by assessee u/s. 191 as an Advance Tax or Self Assessment Tax as well as when Taxpayee has pay tax on his taxable income by way of TDS or TCS u/s. 192 to 196D it is part of collection of TAX.

TDS ON SALARY

• The salaried employee may deduct Income Tax as TDS on his annual taxable income.
• Deduct at Average rate of Income Tax compute on the basis of rate in force
• TDS has to be deducted at the time of Payment (Not on due basis)
• Employee may furnish details of other income to employers to deduct higher tax. (Losses will not be adjusted other than loss from House property)
• Two employer or more employer details of previous employer may be collected in the prescribed format.
• 80G deduction to be ignored while calculating avg. tax rate.

TDS ON INTEREST ON SECURITIES

• TDS Rate 10% (Limit Rs 5000/-)
• No TDS on certain Govt. sponsored Bonds  savings certificates. Interest on Securities payable to LIC, GIC etc.
• Debenture interest payable to Individual and HUF by a public company limit Rs. 5000.
• Payment by A/c Payee cheque

TDS ON DIVIDENDS

• Dividends are exempt u/s 115-O. – No TDS
• Dividend other than 115-O dividend TDS has to be deducted. Limit Rs 2500/- 
• No TDS on Dividend payable to LIC, GIC Principle officer of Indian co. is required to deduct tax on deemed dividend u/s.2(22)(e) @ 10%.

TDS OTHER THAN ON SECURITIES

• Rate of TDS 10% (Limit – Rs. 10,000/- for Bank, Co-Op Soc., Post Office) and (Limit – Rs. 5,000/- for any other case) Accrual basis

TDS UNDER SECTION 194B-194BB

• 194B- WINNING FROM LOTTERY OR CROSS WORD PUZZLES : 
• Limit > Rs.10000 
• Rate-30%
• 194BB-WINNING FROM HORSE RACES
• Limit > Rs. 5000 
• Rate-30%

TDS ON PAYMENTS TO CONTRACTORS

Tax is to be deducted at source:

• On the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
• On the whole of the invoice value, if the value of the material is not mentioned separately in the invoice.

TDS rate

• 1% where payment/credit is to an individual/HUF
• 2 % where recipient is any other person.

PAYMENTS TO CONTRACTORS U/s. 194C

• If the credit or the payment in pursuance of the single contract does not exceed Rs.30,000/-, no deduction has to be made at source.
• However , if the aggregate of all amounts paid/credited or likely to be paid /credited exceeds in F. Y. Rs. 75,000/- then tax at source is to be deducted.
• Individual/HUF covered under the Tax Audit U/s 44AB(a) or 44AB(b) are  specified persons.
• Individual/HUF covered under the Tax Audit U/s 44AB(d)  as required by Section 44AD(5) are  not specified persons.

All other persons have been covered under the definition.

• No TDS on Transporters if PAN is provided

Work’ shall include:

Advertising;

• Broadcasting and telecasting including production of programmes for such broadcasting or telecasting 
• carriage of goods or passengers by any mode of transport other than by railways
• catering ;
• manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, 
• If material purchased from others- it’s not work

Other TDS Sections

• 194D (Resident) (Insurance Commission > Rs.20,000  10%)
• 194E (NR) Sportsmen, Sport Association, Entertainer - 20%
• 194G (R/ NR) Commission on Sale of Lottery Tickets  > Rs.1,000  10% 
• 194H (Resident) Commission or Brokerage > Rs.5,000   10%
• Section 194-I, RENT Rent > Rs.1,80,000 p. a. 
• Rent of Plant & Machinery  @2%
• Rent of Land, Building, Furniture, etc. @10%
• Payment or credit whichever is earilier Limit of Rs 180000  applies upon the payee.                         

Section 194IA- Payment for non-agriculture land and building or its part

Applicable from 1.06.2013

• Transferee or buyer will deduct TDS @ 1%
• TDS is based on the consideration of the property being transferred.
• In case of co-owned property of > 50.00 Lac TDS will be deducted by all the buyers of all the sellers.
• PAN Compulsory of all the parties.
• No PAN-   TDS @ 20% would apply
• TAN  of the deductor (s) not required
• Form No 26QB Challan cum statement
• Form No 16B : TDS certificate

Section 194J-Fees for professional or Technical Services

• Applicable on payments or credit towards - Fees for Professional or Technical Services
• Any remuneration or commission paid to director of the company (Effective from 1 July 2012). Other than those covered under section 192 

Royalty

• Any sun referred to in Section 28(va) payable towards not carrying out any business activity or not sharing any know-how patent, CR,TM, Licence, commercial rights etc.
• Limit > Rs. 30000   TDS Rate @ 10%

Other TDS Sections

• 194K- Income in respect of units
• 194L- Compensation on Acquisition of Capital Asset
• 194LA- Compensation on Acquisition of certain immovable property
• 194LB- Income by way of Interest from Infrastructure debt fund
• 194LC- Income by way of Interest from Indian Companies.
• 194LD-Income by way of interest on certain bonds and Govt. Securities.
• 195- Other Sums
• 196-196A-196B-196C-196D

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FAQs regarding e-mails & Notices issued by Income Tax Departments.

EMAIL SYSTEM IN THE INCOME TAX DEPARTMENT

The Department is presently having two email solutions enabled for its officers. First one is web based email system having domain name ‘@incometaxindia.gov.in’. This can be accessed anytime anywhere through internet. The second email system is Lotus Notes based system having domain name ‘@incometax.gov.in’ which can be accessed only on the computers connected to Departmental net work. There are different eligibility criteria for these email systems.

FREQUENTLY ASKED QUESTIONS
1. I am an Income Tax Department employee. Am I eligible for the web-based email id on the domain name ‘incometaxindia.gov.in’ and Lotus Notes email ids of the Income Tax Department?
All Officers of the rank of Commissioner and above are entitled to have email id on the domain name ‘@incometaxindia.gov.in’. Also, all Officers of the rank of ACIT and above posted in CBDT and attached Directorates of CBDT, are also eligible to get email id on this domain name. This email id can be accessed through internet on the weblink http://mail.incometaxindia.gov.in. All Officers of the rank of ITO and above are entitled to get email id on the Lotus Notes email system of the Income Tax Department, having domain name ‘@incometax.gov.in’.

2. How to get the Income Tax Department web email id on the domain name ‘@incometaxindia.gov.in’?
A request can be made by sending an email to the webmanager@incometaxindia.gov.inor by letter to Directorate of Income Tax (Systems) with necessary details as per the following format:
1 Name
2 Full Designation
3 Civil Code No.
4 ITD Employee Code
5 CCIT(CCA) Region
6 City of Current Posting
7 Office Address, Phone Number and Mobile Number
8 Whether working on any ITD application using user name and password
9 Whether using Lotus notes (email system) on Departmental network?
  If, yes, provide the user id.

3. How to get the Income Tax Department email id on the Lotus Notes?
A form has been prescribed for applying for this email id, which is available with the FMS Helpdesk on the toll-free number 1800110015 and also on Co-Desk portal in the “Knowledgebase” tab. A duly filled in and verified form may be sent to FMS Helpdesk through email as scanned copy/by fax/by hand. Further action will be carried out by FMS Engineersincluding doing necessary configurations on the computers of the user. A copy of this form is also attached with these FAQs.

4. The helpdesk has clarified that the email id will be provided for a designation. Can I get an email id by name?
Email ids have been provided designation wise and presently name wise email ids are not being issued.

5. I have got transferred to a new role/joined a new place of posting, how to covert my present email id designation to new role/designation?
Old email id cannot be converted to new designation. The old email id will remain as it is and will be used by the Officer joining in your place. You will have to use the email id of your new role/designation.

6. I have joined at a new place of posting; however the outgoing officer has not handed over the password to me. How to get the password reset for the email id?
A formal request can be made in the form prescribed for the same through fax/email/by hand. A copy of this form is also attached with these FAQs. This form is available with the FMS Helpdesk on the toll-free number 1800110015 and also on Co-Desk portal in the “Knowledgebase” tab. For further clarifications may please contact FMS Helpdesk on the toll-free number 1800110015 or through Codesk.

7. I am using a Lotus Notes email id of the Department. I have forgotten my password. How to get a new password.
Same as response to FAQ No.6. A formal request can be made in the form prescribed for the same to FMS Helpdesk through fax/email/by hand. A copy of this form is also attached with these FAQs. For further clarifications may please contact FMS Helpdesk on the toll-free number 1800110015 or through Codesk.

8. I am using a Lotus Notes email id of the Department. However it is facing issues in sending and receiving email. How to resolve that?
Issue 1: It is possible that the mail box has been utilized to its full capacity. System is designed in a such a manner that advance warning/in formation email is given to the user when the mail box quota is approaching 100%. In such a scenario due to space constraint the system is not able to send or receive emails. To resolve the issue, the user can create space either by (i) deleting the unwanted emails from Inbox, Outbox and also from Trash or (ii) archiving/backing up the emails to local computer and create space in the email system. After doing so if the problem still persists, the user is required to contact the FMS Helpdesk for unblocking/uncapping of the mail box.
Issue 2: The problem could also be due to large attachment size. As per the present policy an email is allowed to have total attachments of upto 5 MB. In case the size of total attachments is bigger than this the same will not be allowed.
Issue 3: There can be other issues like mail configuration, Id file issue, etc. The user may contact FMS Helpdesk on the toll-free number 1800110015 or through Codesk.

9. How to access my Lotus email from home or on internet?
Departmental Lotus notes email can be accessed only on computers connected toDepartmental network TaxNet. It cannot be accessed from home or through internet.

10. Can I send/receive emails to/from internet based email systems like that of NIC?
Yes, Departmental Lotus Notes email system has been configured to allow send/receive emails to/from all other email systems including internet based email systems.

11. How to get the Lotus Notes email ids of other Officers of the Department?
The mailing system has inbuilt directory wherein Lotus Notes email ids of all officers are listed. Lotus Email Creation Request Form
1. User Name : _________________________
2. Employee Code : _____________________
3. Designation : _______________________
4. CCIT/DGIT Region : __________________
5. CCIT (CCA) Region : _________________
6. State : _____________________________
7. City :_______________________________
8. Building / Site code : ______________
9. Address / Location : ________________
10. Date of Request : __________________
11. Signature & Seal : _________________
(Non Gazetted staff to put Signature only)
12. Signature & Seal of Reporting officer : ___________
(Exempted for CIT and above officials)

Step 1. Log a call in Codesk as Service Request, scan the filled form and attached the same in Codesk, mention your contact no. in case some input is needed OR Call Helpdesk no 1800 11 0015 and log a Service Request for creation of Lotus Mail ID and provide the filled hard copy of the form.
Step 2. Once the Service Request is logged user is provided with the Ticket no.
Step 3. Help Desk agent prepares the request in the desired excel format and attached the sheet in Codesk and transfers the ticket to Shift Manager.
Step 4. Lotus Admin creates the same and communicates to the respective Help Desk about the creation of ID.
Step 5. Once the Lotus ID is created engineer visits the user and installs the Lotus Client and configures his new lotus mail id on this PC and provides the user with basic training of using the mail.
Step 6. Help Desk agent call the user and take the conformation and closes the ticket in the Codesk.

Lotus Email Password Reset Request Form
1. User Name : __________________________
2. Employee Code : ______________________
3. Designation : ________________________
4. Lotus E Mail ID : ____________________
5. CCIT/DGIT Region : ___________________
6. CCIT (CCA) Region : __________________
7. State : ______________________________
8. City :________________________________
9. Building / Site code : _______________
10. Address / Location : ________________
11. Date of Request : ___________________
12. Signature & Seal: ___________________
(Non Gazetted staff to put Signature only)
13. Signature & Seal of Reporting officer : ___________
(Exempted for CIT and above officials)

Step 1. Log a call in Codesk as Service Request, scan the filled form and attached the same in Codesk, mention your contact no. in case some input is needed OR Call Helpdesk no 1800 11 0015 and log a Service Request for creation of Lotus Mail ID and provide the filled hard copy of the form.
Step 2. Once the Service Request is logged user is provided with the Ticket no.
Step 3. Help Desk transfers the ticket to Shift Manager PDC.
Step 4. Shift Manager get the necessary reset done and up loads the new ID file, if necessary on the FTP and send communication to Helpdesk.
Step 5. Engineer visits the user downloads the ID file from FTP, does the necessary changes on user PC and helps user to logon.
Step 6. Help Desk take conformation from the user and closes the ticket or if the call is logged by the user, the user closed the ticket.

Download PDF format (Click Here)

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Deductor Not responsible for non-mention PAN of Deductee in TDS Certificate.

As per Income Tax rulings regarding issuing of Form-16, or 16A Deductors are not responsble for non-mention of payee’s PAN in it. In the other words we can say if the TDS Deductee or Taxpayee not provided his PAN befor issuing Form-16, or 16A there is no penalty on deductor for non-mention payee's PAN in there.

The following points are clarify the same -

• If payee doesn't furnish his PAN to deductor as required by section 139A(5A), deductor can't be penalized under section 139A(5B) read with section 223B(1) for not mentioning payee's PAN in TDS certificate issued to payee in Form 16A.
• Where there is nothing on record to show that contractors to whom certain amounts were paid by asssessee after deducting TDS under section 194C/194J had intimated their PANs to assessee (deductor) as required by section 139A(5A), penalty can't be imposed on assessee (deductor) under section 272B(1) for non-mention of the PANs of the contractors(payees) in Form 16A TDS certificates issued to them.
• Default by contractors (payees) in furnishing their PANs to assessee (deductor) as per the requirements of section 139A(5A) is "sufficient cause" within the meaning of section 273B for deductor's contravention of section 139A(5B) ( failing to mention PANs of payee-contractors on their TDS certificates in Form 16A issued to payee-contractors). In view of this sufficient cause, no penalty imposable.

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Important e-Filing Questions, Queries, requirement for e-Return.

With reference to e-filing submission of Income Tax Return, there are many queries, questions and doubts etc.  In this regard while submitting your e-Return of Asstt. Year 2013-14 check before this, it is a typical job for a normal person and the same can be done only by a professional or expert. But in fact it is so simple and easy which can be done without having special knowledge.  It means that mechanism controls lot of things or in case there is any error in data feeding or in submission, alerts are available in utility. However keeping in view all such things some general questions along with their answers are given below :

1. I don't understand the process of e-Filing. What should I do?
Answer: To understand the procedure to e-File Income Tax Returns, GO TO 'e-File' on the home page of the ITD e-filing web site OR GO TO 'Help' → 'How to e-File' on the homepage.

2. What is the Return Preparation Software?
Answer: The ITD e-filing website has provided User Friendly utilities in Excel format for free  download. These may be used by the individuals or organizations to file their returns  electronically. These utilities are called the 'Return Preparation Software'. The input to the  "Return Preparation Software" will be the actual data that taxpayer need to fill while preparing  return of income.

3. Is it mandatory to register on e-Filing application to e-File my Income Tax Return?
Answer: Yes.

4. Is it necessary that I use the Excel Utility created by Income tax Department? Can I use some other utility?
Answer: Yes. The e-Return Preparation Software provided at the ITD e-filing website are free for anyone to use in order to create the e-return XML file. End users are also free to use any other utility created by other software providers, as long as the XML output conforms to the XML Schema which has been posted at the e-Filing website.

5. What are the system requirements to download and use the Excel Utility?
Answer: The minimum system requirements needed to download and use the Return  Preparation Software are: PC with 128 MB RAM, P-III processor, MS Excel, Internet  connection, Internet Browser, at least 25 MB free hard disk space,, Adobe Acrobat Reader,  and Windows Operating system (Win 2000 or higher version), Java Run-time Environment  Version 1.6 (Beta) or above for using DSC.

6. What is XML?
Answer: XML stands for Extensible Markup Language. It is a general purpose markup  language designed especially for Web documents. XML is a way of describing data and it  allows designers to create their own customized tags, enabling the definition, transmission,  validation, and interpretation of data between applications and between organizations. Any  Excel Utility which creates an e-return XML will be a file with an extension .xml. This is the file  that must be uploaded to the ITD e-filing website.

7. What is a Schema?
Answer: A schema refers to the collection of database objects associated with a  particular  database. Any user who files e-return will have to create an XML file based on the schema. A  simple analogy would be that the schema represents a letter template where the user enters  the addressee details, name, salutation, body text etc which then completes the document  which is the equivalent of an XML file. The template ensures uniformity and standardization of  the format of the letter in the same way that the schema provides a structure to the XML file. On uploading the file on to the system, a unique database object is created in the Income tax  Department system. If you are using the services of the Utilities available at the e- Filing  website, or any other Utility capable of generating an e-return XML for these forms, you need  not download the schema or be worried about it. The Schema is made available to those  individuals, software companies and organizations who wish to use this code to help create  their own software utility for filling up these forms.

8. 'Validate', 'Calculate Tax', 'Generate' buttons are not working in Return Preparation software provided by the Department.
Answer: Macros should be enabled in the Return Preparation Software. Below are the steps  to enable Macros: 1. For Excel 2003 users: Click on TOOLS menu and select → OPTIONS →  SECURITY → Macro Security must be set to Medium or Low. 2. For Excel 2007 and Excel  2010 users: Click on the OFFICE button on the top left corner of the application and click EXCEL OPTIONS → TRUST CENTER → Trust Center Settings   button → Select Macro  Settings and click on radio button "Enable All Macros".

9. While making data entry in some fields in the utility provided by the Department, the error  message appears: "Password protected".
Answer: The field gives the error message 'Password Protected' in case when the person  using the utility tries to enter the value in the field which is auto-calculated or the field which is  auto populated from the other schedules.

10. While uploading the Income Tax Return, I am getting an error "The XML Schema is invalid.  Please upload the XML in the correct schema". What does this error mean?
Answer: This error occurs when you might have tampered with the XML generated from the Return Preparation Software (Excel utility). Ensure that you upload the XML as it is generated from the Return Preparation Software. Also, ensure that you have downloaded and generated the XML from the 'Return Preparation Software' of the relevant Assessment Year and relevant Form type. The same Assessment Year and Form type must be selected while uploading the Income Tax Return Form.

11. What to do when there is an Error in uploading the XML?
Answer: The nature of problem will be highlighted. Rectify the error and try uploading the  XML again.

12. What is to be done if taxpayer gets NULL error, while uploading the XML file?
Answer: This particular problem happens when -- special characters like & < > # are entered in Income Tax Return -- there is slow internet connection or network congestion, as the XML file is not read completely and henceforth it throws exception stating to upload proper XML. Trying after sometime may resolve this problem. Kindly follow the following steps: Set the  Internet Explorer settings to Low. Go to Control Panel → Java → General → Settings and  uncheck the 'Keep Temporary Files on my computer'. Click the 'Delete Files' button and click  OK. Close your existing browser and open a new browser and upload your xml file again. If  the problem persists, kindly contact the call center at 080-22546500.

13. I have saved the XML file in my computer but while uploading system is giving the error  "Cannot read the xml file" What should I do?
Answer: Kindly set the Internet Explorer Security Settings to Low as per following steps :

• In case of windows professional/vista, then Go to Control Panel → Java → General →  Settings Kindly uncheck the 'Keep Temporary Files on my computer' and click the 'Delete  Files' button and press OK. Close your existing browser and open a new browser.
• In case  of Windows XP, then Go to Control Panel → Other Control Panel Options → Java → General  → Settings Kindly uncheck the 'Keep Temporary Files on my computer " and click the 'Delete  Files' button and press OK Close your existing browser and open a new browser.

14. Where do I save the downloaded Excel utility? Can I delete them later?
Answer: You can download the Excel utility on to your local computer/system. Once you fill the Excel utility and upload the XML file on the web-site, an Acknowledgment of the  submission is generated. After receiving this intimation, the file can be saved. It is  recommended that the XML file be retained for your records. The e-Filed XML file is also  available post LOGIN in 'My Account' → 'My Returns/Forms'.

15. Can a Chartered Accountant (CA) file Income Tax Return on behalf of the Company?
Answer: No. The person authorized by the company to file the Income Tax Return, can eFile the Income Tax Return of the company.

16. Can a Chartered Accountant (CA) file Income Tax Forms like Audit Forms on behalf of the taxpayer?
Answer: Yes.

17. How can a Chartered Accountant (CA) file Income Tax Forms for a tax payer?
Answer:

• Visit ITD e-filing website https:\\incometaxindiaefiling.gov.in
• GO TO 'Downloads' section and select applicable Income Tax Form of the desired Assessment Year OR Login to e-Filing application and GO TO 'Downloads'→'Download Forms' and select applicable Income Tax Form of the desired Assessment Year.
• Download the excel utility of the Income Tax Form.
• Fill the excel utility and Validate.
• Generate an XML file and save in desired path/destination in your desktop/system.
• LOGIN to e-Filing application and GO TO → e-File → Upload Form.
• Select the Income Tax Form and the Assessment Year.
• Browse and Select the XML file
• Upload Digital Signature Certificate.
• Click 'SUBMIT'.
• On successful upload, the Income Tax Form is sent to Assessee's workflow for acceptance.
• The Assessee should LOGIN to e-Filing application, GO TO Worklist and accept/reject the Income Tax Form.
• On Approval, the Form is successfully submitted with e-Filing application. No further action is required. If rejected, the Tax Professional can file the Income Tax Form again and follow the same process as mentioned above.

Note:

1. You can upload the Forms after you have registered in e-Filing.
2. Assessee can "Add CA", using My Account menu, after login
3. To e-File using Digital Signature Certificate (DSC), the DSC should be registered in the  application. (To register DSC, you should LOGIN and GO TO → Profile Settings → Register  Digital Signature Certificate)
4. The Form will be further processed and the Assessee will be notified  accordingly. Please check your emails on these notifications.

18. How can I Add/Change a Chartered Accountant in my profile?
Answer: LOGIN to e-Filing application and GO TO 'My Account' → 'Add CA'. Enter the  Membership Number of the CA, Form Name and Assessment Year. The Chartered  Accountant must be registered with e-Filing application.

19. How can I reject an Income Tax form filed by a Chartered Accountant on my behalf?
Answer: LOGIN using your credentials and GO TO Work-list. Select the Income Tax Form you wish to reject, provide comments and click on the Reject button.

20. While trying to e-File Income Tax Return using Digital Signature Certificate, the 'Select your  .pfx file' or 'Select with your USB Token' buttons are not displayed or are not clickable.
Answer: This occurs due to the following reasons:

1. Check if Java Runtime Environment 1.6 or above is installed in your PC. If it is not installed,  click here to download.
2. If Java Runtime Environment 1.6 or above is installed in your PC and still you are unable to  register DSC to e-Filing application, this is because the Java is disabled. GO TO Internet Options → Advanced → Settings. Enable the check-box for 'Java'.

21. I am an authorized signatory (principal contact) and while uploading the Income Tax Return I  get an error saying "PAN mentioned on Personal Information is invalid". I am entering the  PAN of my Company/Firm/AOP/BOI/Artificial Juridical Person, HUF/ Co-operative Society/  Legal Authority/Trust. Why am I still getting the error?
Answer: Everyone other than Individual must enter the PAN of the principal contact  (authorized signatory) in the Verification section of the Income Tax Return. If the Income Tax  Return is being digitally signed, the PAN encrypted in the DSC must match with the PAN  mentioned in the verification section.

22. I am assigned as a Legal Heir for a deceased person. While uploading the Income Tax Return of the deceased, I am getting an error "PAN mentioned on Personal Information is  invalid". What do I do?
Answer: Please ensure that the PAN entered in the Verification section of the Income Tax Return is your (Legal heir) PAN and not of the deceased person. Also, if the Income Tax  Return is being digitally signed, the PAN encrypted in the DSC must match with the PAN  mentioned in the verification section.

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New TDS e-Tutorial

TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. It is similar to "pay as you earn" scheme also known as Withholding Tax in many other countries, one of the countries is USA. The concept of TDS envisages the principle of "pay as you earn". It facilitates sharing of responsibility of tax collection between the deductor and the tax administration. It ensures regular inflow of cash resources to the Government. It acts as a powerful instrument to prevent tax evasion as well as expands the tax net.

Who shall deduct tax at source?
Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 40 lakh or Rs. 10 lakh respectively (the limits will be Rs.60 Lakh or Rs. 15 Lakh respectively w.e.f. 01.07.2010) in previous year, he is required to deduct tax at source.

These persons are mainly:

• Principal Officer of a company for TDS purpose including the employer in case of private employment or an employee making payment on behalf of the employer.
• DDO (Drawing & Disbursing Officer), In case of Govt. Office any officer designated as such.
• In the case of "interest on securities" other than payments made by or on behalf of the Central govt. or the State Government, it is the local authority, corporation or company, including the Principal Officer thereof.

Such person is called Deductor while the person from whom the tax is deducted is called Deductee.

Tax must be deducted at the time of payment in cash or cheque or credit to the payee's account whichever is earlier. Credit to payable account or suspense account is also considered to be credit to payee's account and TDS must be made at the time of such credit.

Download New TDS e-Tutorial

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1% TDS on properties valued above Rs 50 lakh rule and issue.

MUMBAI: Shares of real estate companies crashed on Friday on fears that demand for homes in metro cities will see a slowdown after finance minister P Chidambaram proposed to levy 1 per cent tax deducted at source, or TDS, on properties sold for over Rs 50 lakh. Anybody selling a home for Rs 50 lakh will have to pay Rs 50,000 to the government as TDS.

This will increase the price of residential properties. Shares of India's largest real estate company DLFBSE 1.50 % plunged 6.25 per cent to close at Rs 259 and the benchmark index for real estate sector, BSE Realty Index, plummeted 3.93 per cent to close at 1931.

Analysts fear property transactions in national capital region, Delhi (NCR), and Mumbai may see a further fall, hitting the already struggling sales. "The levy of 1 per cent TDS on property value exceeding Rs 50 lakh will curb movement of black money within the real estate sector," said Phillip Capital, a domestic brokerage, in a research note released on Friday.

"To avoid TDS, property transactions may see a spurt till May 31, 2013 as the new tax law is only effective from June 1, 2013," the brokerage said. The service tax abatement on flats with carpet area of 2,000 square feet or more, or value of Rs 1 crore or more, has been reduced to 70 per cent from 75 per cent. This means real estate developers who were paying 12.5 per cent service tax on 25 per cent of the value will now have to pay for 30 per cent of the value.

"The effective service tax rate for real estate companies will increase by 62 basis points to 3.7 per cent of the property value. The real estate companies may choose to pass on this extra tax burden to customers," said Suresh Surana, Founder, RSM Astute Consulting Group.

Analysts say demand for super-premium properties may also get impacted after the government proposed a 10 per cent surcharge on individuals who earn yearly income of more than Rs 1 crore.

A proposal to double surcharge to 10 per cent for companies whose taxable income exceeds Rs 10 crore will hit real estate developers. "The tax surcharge is seen as negative for real estate companies, the effective corporate tax rate will increase by 154 basis points to 33.99 per cent from 32.44 per cent," said Karvy Stock Broking.

Source: The Economics Times

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Clarification for TDS Liability on Annual Salary Income.

FAQ's of Salary Income and Tax Liability.

Q1. When arrears of salary pertaining earlier years are received in one year, what is the relief available to the assessee?
Ans : The arrears of salary are to be taxed in the year of receipt along with the regular salary. However, the employee will be entitled to certain relief under section 89(1) as computed in accordance with Rule 21A.

Q2. Can the employer take into account the relief admissible under section 89(1) while deducting tax at source from salary?
Ans : Yes, in respect of Govt. servants or employees in a company, co-operative society, local authority, university, institution, associations or body, the employer may take into account the relief admissible under section 89(1) provided the employee furnishes the particulars in form No.10E to the employer.

Q3. If an employee has also income from other sources apart from salary, can the employer take these into account while deducting tax from salary?
Ans : Yes, if the employee furnishes the required particulars in form No.12C to the employer. This is subject to the condition that the income under any of the other heads except 'Income from House Property' is not a loss. If the employee has incurred a loss under the head 'Income from House Property', he may furnish details thereof to the employer in form No.12C and the employer may then take into account the said loss while deducting tax from salary.

Q4. Is pension treated as salary ?
Ans : Yes, pension is also treated as salary and is accordingly entitled to the standard deduction.

Q5. Is family pension also treated as salary?
Ans : No. As there is no employer-employee relationship between the recipient of the family pension and the payer, family pension is not salary. It is taxed under the head 'Income from Other Sources'. In respect of family pension received from the employer by a person belonging to the family of the employee in the event of the employee's death, a standard deduction of 1/3rd of the family pension or Rs.15,000 whichever is less is allowed as a deduction.

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FAQs about Form 26 AS (PAN Ledger) Part A/B – Details of Tax deducted/Collected at source.

Before making Form 16A (TDS Certificate) from TIN NSDL website taxpayee must check Tax Credit as Form 26 AS in Part A/B and then confirm it.This is the Details of Tax deducted/Collected at source. And in this regard some common questions are below:

What are the possible reasons for mismatch/missing credits in Parts A/B of my Form 26AS and what action can be taken to rectify?The possible reasons and actions to be taken for mismatch/missing credit being displayed in your Form 26AS can be:

Reasons for mismatch/missing entry in Part A/B	Action to be taken by the assessee
In case the deductor/collector
a) Has not filled quarterly TDS/TCS return.	Follow up with deductor/collector to file TDS/TCS return
b) Has not mentioned or has wrongly quoted your PAN in TDS/TCS return.	Follow up with deductor/collector to file TDS/TCS correction return
c) Has wrongly quoted the challan details in the return against which your TDS/TCS was deposited	Follow up with deductor/collector to file TDS/TCS correction return
d) Has provided correct challan details in TDS/TCS return but bank has made error while digitising challan details	Inform deductor/collector to contact bank for rectification
In case you
a) Have provided incorrect PAN to the deductor/collector	Provide correct PAN to deductor/collector & ask him to file correction return with correct PAN
b) Have not provided PAN to the deductor/collector	Provide PAN to deductor/collector & ask him to file correction return with PAN
The TDS/TCS return filed by the deductor/collector is rejected in the system	Contact your deductor/collector

Date of payment displayed in Form 26AS is different than date mentioned in TDS certificate issued by my deductor/collector. How can I correct it?You should contact your deductor/collector to file revised TDS/TCS return with correct date.

I have given incorrect PAN to my deductor. What will be the effect in Form 26AS?
In such cases, the tax payment details will not be posted in Form 26AS. Therefore, it is important for you to correctly state your PAN in your tax payment challans.

How can any deductor verify the status of the TDS/TCS returns furnished by him?
The deductor can use the Quarterly Statement Status facility available at TIN website to verify both upload and booking status of the TDS/TCS return uploaded by it.

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Latest TDS Calculator for Central & State Goverment Employee for Asstt. Year 2013-14.

As you know, last time we published TDS Calculator with Current D.A. & other Allowance, but This TDS Calculator is based on features D.A. Rates and Current D.A. of current Financial Year 2012-13. It is a simple and most useful TDS Deductions Calculator for Assessment Year 2013-14 Excel Utility (software) with Free Download Facility. This software calculate TDS Deductions monthly for A.Y. 2013-14 with all qualifying Deductions and other eligible Deductions.

Key Features of this the Software:

• Calculate Gross Income as per current D.A. Rates
• Calculate Gross TDS Tax Liability
• Display Monthwise Salary Statement
• Davide TDS Liability Monthly.

How to Use this Calculator?

• Enter Date as required by Software in only "White Field".
• Press Button to Calculate Tax Liability and Monthly Salary Statement.

Picture of Calculator.

Free Download Facility only for Registered Members
Therefore
You must Register with us....
Click to Download

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Clarification regarding Exemption from Filing of Income Tax Return.

It is general demand that salaried assessee do not aware with exemption from filing of Income Tax Return thus some clarification regarding Exemption from filing of Income Tax Return is as under:

What is the purpose of this notification and who are proposed to be exempted from the requirement of filing of the return?
The primary objective of this notification is to exempt those salaried taxpayers from the requirement of filing income-tax returns, who have-

1. total income not exceeding Rs.5,00,000, and
2. the total income consists only of income chargeable to income tax under the head Salaries and interest income from savings bank account if such interest income does not exceed Rs.10,000.
   

Further, such salaried taxpayer would be eligible for exemption from filing a return of income only if tax liability has been discharged by the employer by way of Tax Deducted at Source (TDS) and the deposit of the same to the credit of the Central Government. For this purpose, taxpayer has to intimate his interest income to the employer during the course of the year.
For Example –

• If an individual has salary income of Rs.4,90,000 and interest income from savings bank account not exceeding Rs.10,000 (which has been reported to the employer and tax has been deducted thereon), then the taxpayer would be exempt from the requirement of filing income-tax returns since the total income from both the above sources does not exceed five lakh rupees.
• A taxpayer having salary income of Rs.4,98,000 and interest income from savings bank account of Rs.2,000 (which has been reported to the employer and tax has been deducted thereon), would also be eligible under this Scheme.
• A taxpayer having salary income upto Rs.5,00,000 and nil interest income would also be eligible under this Scheme.
• A taxpayer having salary income of Rs.5,50,000, interest income from savings bank account of Rs.8,000(which has been reported to the employer and tax has been deducted thereon), and who has claimed deduction of Rs.70,000 under section 80C (on account of certain payments/investments/savings) would also be eligible under the Scheme.
• A taxpayer having salary income of Rs.6,10,000, interest income from savings bank account of Rs.10,000 (which has been reported to the employer and tax has been deducted thereon), and who has claimed deduction of Rs.1,00,000 under section 80C (on account of certain payments/investments/savings), a deduction of Rs.20,000 under 80CCF (Infrastructure Bonds) and a further deduction of Rs.15,000 under section 80D (Health Insurance Premium) would also be eligible under the Scheme.
  

Whether a salaried taxpayer having total income of less than Rs.5,00,000 and claiming a refund of Rs.3,000 would be eligible under this Scheme.
No. The taxpayer has to file a return of income for making a claim of refund.

Is having a valid PAN number a precondition for being covered by the notification?
Yes. The notification clearly specifies that the individual has to report his PAN to the employer. Hence having a valid PAN is a precondition for falling within the ambit of the notification.

Can an individual who is getting income under the head “salaries” from more than one employer take benefit of the notification?
No. A salaried taxpayer who has earned income from more than one employer during the financial year is not covered under this Scheme.

Whether this notification would also cover taxpayers having ‘loss from house property’, which are often reported by the employees to the employer.
No. Under the existing procedure, DDO/employer can give credit to the employee for a claim for loss under the head “income from house property” u/s 24 made by the employee. As a result, a salaried employee’s total income may reduce to less than Rs.5,00,000 as loss from the head “income from house property” would have been set-off against salary income. Such a taxpayer is not exempted from filing his return of income as the notification exempts only cases where the total income is under the head “salary” and from savings bank account (income from other sources) not in excess of Rs.10,000. If the taxpayer has any loss under the head “income from house property”, he will not be eligible for exemption from filing a return of income.

Does savings bank account include other banking accounts like fixed deposits or recurring deposits accounts?
No. The benefit of the notification is available to taxpayers whose interest income comprises of interest earned on savings bank account ONLY.

Circular No. 8/2010 dated 13.12.2010 which is applicable for Assessment Year 2011-12 stipulates that the Drawing and Disbursing Officer (DDO)/Employer while deducting TDS from salary of an employee cannot allow deduction u/s 80G except donations made to the Prime Minister’s Relief Fund, the Chief Minister’s Relief Fund or the Lt. Governor’s Relief Fund. Whether the notification would cover only these cases?
Yes. An individual cannot avail the exemption under this notification if the claim of deduction for donations under section 80G is for donations other than those mentioned in Circular No.8/2010. A taxpayer has to file a return of income for making a claim in respect of claim of deduction under section 80G for such donations (not specified in Circular No.8/2010).

Will a salaried individual having agricultural income, which is exempt from tax, be covered within the ambit of the notification?
A salaried individual with agricultural income exceeding five thousand rupees shall be out of the ambit of the notification. A return will have to be filed in such a case, even if other conditions of the notification are satisfied as the agricultural income (of more than Rs.5,000) has to be included, for rate purposes, in the total income.

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NSDL Return Preparation Utility (RPU) Ver. 3.0 Free Download.

Free Download e-TDS/e-TCS Return Preparation Utility Version 3.0 launched by NSDL TIN. RPU 3.0 is used for preparing regular quarterly statements for e-tds and e-tcs. This will help in preparing e-TDS/tcs challans and return from the financial year 2005-06 and onwards. The forms 24Q, 26Q, 27Q and 27EQ can be easily validated with this utility.

Key features of NSDL Return Preparation Utility (RPU) version 3.0

• Incorporation of FVU version 3.5 for quarterly e-TDS/TCS statement (regular and correction) pertaining to FY 2010-11 and onwards.
• Changes in the structural validations of Book Identification Number (BIN) quoted in quarterly TDS/TCS statements for TDS/TCS deposits made by Book entry (applicable only in case of Govt. deductors).

Download Return Preparation Utility (RPU) version 3.0 Click Here

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