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Friday, April 17, 2015

Income tax return form ITR-1 SAHAJ, ITR 2, ITR 4S SUGAM and ITR V for AY 2015-16

The income tax department notified income tax return form for the analysis year 2015-16. Income tax department issued ITR-1 SAHAJ, ITR-2, ITR 4S and ITRV forms for the AY 2015-16. However these forms are available in PDF format now. Income tax department soon upload the return form in java version too.


ITR-1 SAHAJ
Individual income tax return
ITR-2
This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2012-13 includes:-

(a) Income from Salary / Pension; or
(b) Income from House Property; or 
(c) Income from Capital Gains; or 
(c) Income from Other Sources (including Winning from Lottery and Income from Race Horses).
Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

ITR 4S SUGAM
where presumptive business income tax return of individual and HUF having income from proprietorship or professional income.
ITR V ACKNOLEDEMENT


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Thursday, April 16, 2015

E-filing of return mandatory for individuals and HUF claiming tax refunds and earning overseas income

 CBDT made it mandatory e-filing of return of income for individuals and HUF who claim tax refund . Moreover the ordinary residents earning overseas income also needs to file income tax return in electronically mode. 

CBDT issued a notification no. 41/2015 dated 16 April 2015 and made 7th amendments rules in income tax rules. Full notification is as under.

 In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 2015.
 (2) They shall be deemed to have come into force with effect from the 1st day of April, 2015.

2. In the Income-tax Rules, 1962,─
(1) in rule 12,─
(a) in sub-rule (1),-

(A) after the words, brackets, figure and letter “sub-section (4D)” the words, brackets, figure and letter “or sub-section (4E)” shall be inserted;

(B) for the figures “2014”, the figures “2015” shall be substituted;

(C) in clause (a), in the proviso, in clause (I), for sub-clause (ii), the following sub clauses shall be substituted, namely:-
“(ii) signing authority in any account located outside India; or
(iii) income from any source outside India;”;

(D) in clause (ca), in the proviso, in clause (I), for sub-clause (ii) the following subclauses shall be substituted, namely:-
“(ii) signing authority in any account located outside India; or
(iii) income from any source outside India;”;

(E) in clause (g), after the words, brackets, figure and letter “sub-section (4D)” the words, brackets, figure and letter “or sub-section (4E)” shall be inserted;
(b) for sub-rule(3), the following sub-rule shall be substituted, namely:-

‘(3) The return of income referred to in sub-rule (1) shall be furnished by a person mentioned in column (ii) of the Table below to whom the conditions specified in column (iii) apply, in the manner specified in column (iv) thereof:-

Person
Condition
Manner of furnishing return of income
Individual or Hindu undivided family
(a) Accounts are required to be audited under section 44AB of the Act;
Electronically under digital signature

(b) Where (a) is not applicable and,- (I) the return is furnished in Form No. ITR-3 or Form No. ITR-4; or (II) the person, being a resident, other than not ordinarily resident within the meaning of subsection (6) of section 6, has, (A) assets (including financial interest in any entity) located outside India; or (B) signing authority in any account located outside India; or (C) income from any source outside India; (III) any relief, in respect of tax paid outside India, under section 90 or 90A or deduction of tax under section 91 is claimed; or (IV) any report of audit referred to in proviso to sub-rule (2) is required
to be furnished electronically; or
(V) total income assessable under the
Act during the previous year of
the person (other than the person,
being an individual of the age of
80 years or more at any time
during the previous year and
furnishing the return in Form
ITR-1 or ITR-2),-
(i) exceeds five lakh rupees; or
(ii) any refund is claimed in the
return of income;
(A) Electronically under digital signature; or (B) Transmitting the data in the return electronically under electronic verification code; or (C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V.
(c) In any other case
(A) Electronically under digital signature; or (B) Transmitting the data in the return electronically under electronic verification code; or (C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V; or (D) Paper form;
Company
In all cases.
Electronically under digital signature
A person required to furnish the return in Form ITR-7
(a) In case of a political party;
Electronically under digital signature;

(b) In any other case
(A) Electronically under digital signature; or (B) Transmitting the data in the return electronically under electronic verification code; or (C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in  under electronic verification
code; or
(C) Transmitting the data
in the return electronically
and thereafter submitting the
verification of the return in
Form ITR-V.
Firm or limited liability partnership or any person (other than a person mentioned in Sl. 1 to 3 above) who is required to file return in Form ITR-5
(b) In any other case.
(A) Electronically under digital signature; or (B) Transmitting the data in the return electronically under electronic verification code; or (C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V.

Explanation.- For the purposes of this sub-rule “electronic verification code” means a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).’

(d) in sub-rule (4), for the words and brackets, “Director-General of Income-tax (Systems)”, the words and brackets “Principal Director-General of Income-tax (Systems) or DirectorGeneral of Income-tax (Systems)” shall be substituted;

(e) in sub-rule (5), for the figures “2013”, the figures “2014” shall be substituted.

(2) in Appendix-II, for “Forms SAHAJ (ITR-1), ITR-2, SUGAM (ITR-4S) and ITR-V” the “Forms SAHAJ (ITR-1), ITR-2, SUGAM (ITR-4S) and ITR-V” shall respectively, be substituted,
namely:-

Fixed deposit below 15 lakhs must have pre mature facility

Reserve bank of India issued a instruction to all banks that any deposit below 15 Lakhs must have pre-mature facility with which the deposit holder can take back the amount anytime during the deposit period. Moreover banks can decide the differentiate rates on deposit 1 Core and above and below 1 crore. Full instruction is as under.

 Please refer to our circulars DBOD. No. Dir.BC.36/13.03.00/98 dated April 29, 1998, DBOD. No. Dir.BC.07/13.03.00/2001-02 dated August 11, 2001 and DBOD. No. Dir. BC.74/13.03.00/2012-13 dated January 24, 2013 in terms of which banks are allowed to offer differential rates of interest on term deposits on the basis of tenor for deposits less than ₹ 1 crore and on the basis of quantum and tenor on term deposits of ₹ 1 crore and above.

2. In this connection, attention is invited to paragraph 29 of sixth Bimonthly Monetary Policy Statement- 2014-15 announced on February 3, 2015 whereby it was decided to introduce the feature of early withdrawal facility in a term deposit as a distinguishing feature for offering differential rates of interest. Accordingly, banks will have the discretion to offer differential interest rates based on whether the term deposits are with or without-premature-withdrawal-facility, subject to the following guidelines:

All term deposits of individuals (held singly or jointly) of ₹ 15 lakh and below should, necessarily, have premature withdrawal facility.

For all term deposits other than (i) above, banks can offer deposits without the option of premature withdrawal as well. However, banks that offer such term deposits should ensure that at the customer interface point the customers are, in fact, given the option to choose between term deposits either with or without premature withdrawal facility.

Banks should disclose in advance the schedule of interest rates payable on deposits i.e. all deposits mobilized by banks should be strictly in conformity with the published schedule.

The banks should have a Board approved policy with regard to interest rates on deposits including deposits with differential rates of interest and ensure that the interest rates offered are reasonable, consistent, transparent and available for supervisory review/scrutiny as and when required.

Wednesday, April 15, 2015

Income tax exemption on Transport allowance to employees is doubled from 1-4-15

Income tax department doubled Transport Allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of residence & duty from Rs. 800 to Rs. 1600 whereas Transport allowance granted to physically disabled employee for the purpose of commuting between place of duty and residence is also doubled from Rs. 1600 to Rs. 3200.

Income tax department issued a notification no. 39/2015 dated 13 April 2015 with 6th amendment rules of income tax. Full notification is as under.


In exercise of the powers conferred by section 295, read with clause (14) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

(1) These rules may be called the Income-tax (6th Amendment) Rules, 2015.
(2) They shall come into force on the 1st day of April, 2015.

2. In the Income-tax Rules, 1962, in rule 2BB, in sub-rule (2), in the Table,- (a) against serial number 10, in the entry under column(4),relating to the extent to which allowance is exempt, for the letters, figures and words “Rs.800 per month”, the letters, figures and words “Rs.1600 per month” shall be substituted;

(b) against serial number 11, in the entry under column (4),relating to the extent to which allowance is exempt, for the letters, figures and words “Rs.1600 per month”, the letters, figures and words “Rs.3200 per month” shall be substituted.
Tags-income tax exemption on transport allowance,transport allowance it exemption,it exemption transport allowance,transport allowance employees exemption

No TDS on additional payment due to forex currency change if TDS is deducted at credit of payment

Provisions of section 195 provide that once tax is deducted at source at the time of credit of payment, there can be no question of deduction of tax at source on full or in part at the time of payment. Once tax was deducted at the first stage when the amount of income was credited to the account of payee, which was done by converting foreign currency into TT buying rate on that particular date, then the assessee could not be called upon to deduct tax at source on the additional liability arising due to foreign exchange fluctuation

FACTS

• The assessee acquired technical know-how in respect of some automobile models which was capitalized as an `Intangible asset' and depreciation was claimed thereon.

• The Assessing Officer observed that between the date of credit of acquisition price and the date of actual payment, the exchange rate of rupee and Japanese yen fluctuated, as a result of which the assessee suffered a forex loss of Rs.5.22 crore. The cost of acquisition of the said asset which was originally recorded at Rs.141.47 crore swelled toRs.146.70 crore, the incremental amount being the forex loss ofRs.5.22 crore. The Assessing Officer observed that the assessee deducted tax at source under section 195 only on the payment of Rs.141.47 crore and no tax atsource was deducted from the additional payment of Rs.5.22 crore on account of fluctuation in foreign exchange rate.He disallowed depreciation on the corresponding amount ofRs.5.22 crore, which resulted into disallowance of Rs.1.30 crore.

• The assessee is aggrieved against the disallowance made by the Assessing Officer.

HELD

• When we read section 40(a)(i) in juxtaposition of section 195, the position which follows for disallowance under section40(a)(i) is that there should be a sum on which tax is deductible at source and the assessee fails to deduct the same. The stage of deduction of tax at source has been set out by section itself. It clearly provides that the deduction should be made `at the time of credit of such income to the account of the payee or at the time of payment…, whichever is earlier.' Thus, it is clear that the deduction of tax at source on a single transaction is contemplated at the earlier of the dates of credit or payment to the payee. Itis not on both the occasions. Once deduction of tax at source has been made at the time of credit, which event occurs first, then there can be no question of once again making deduction of tax at source on full or in part at the time of payment.[Para 10]

• The tax is required to be deducted at the first stage when the amount of income is credited to the account of payee and, hence, deduction of tax at source is also contemplated at that stage alone which is to be done by converting foreign currency into TT buying rate at that particular date. There is no warrant for accepting the Revenue's contention that the deduction of tax at source should have been made at the later stage also onthe additional liability when the assessee made payment. In our considered opinion, the Act does not require two phased deduction of tax at source on one transaction, one at the time of credit and second at the time of actual payment. Deduction of tax at source is required to be made only on one occasion, which in the context of section 195 is, earlier of the time of credit or the time of payment. Under such circumstances, the assessee cannot be called upon to deduct tax at source on the additional liability arising because of foreign exchange loss. If we take the contention of the Revenue to a logical conclusion, then every case of payment in convertible foreign exchange would require deduction of tax at source, firstly, at the time of credit and secondly, at the time when additional liability is fastened on it due to unfavorable rate of exchange. A very peculiar situation would arise, if instead of the assessee suffering forex loss, gets forex gain on account of favourable rate of exchange at the time of payment. Going by the viewpoint of the Revenue, in that case, it would become liable to refund a part of the amount of excess tax deducted at source at the first instance at the time of credit to the account of the payee, which position is manifestly contrary to the legislative intent and prescription. The crux is that in both the situations, i.e., whether there is a forex loss or gain, deduction of tax at source under section 195 is contemplated only at the first stage of the credit of income to the account of the payee. The higher or lower liability due to foreign exchange loss or foreign exchange gain is inconsequential in so far as deduction of tax at source under section195 is concerned. Once there is no default on the part of the assessee in making deduction of tax at source on the additional amount paid due to foreign exchange loss, there can be no question of making any disallowance under section40(a)(i)

Tuesday, April 14, 2015

New company can apply PAN/TAN with form INC-7- No other form required

The income tax department issued a notification no. 38/2015 dated 10 April 2015 making fifth amendment rules. Now a company which is not registered with company act can apply PAN/TAN number with form INC-7 which is used as application for incorporation of company. No other form need to fill up for aplying PAN/TAN. Full notification and Form INC-7 are as under.

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income –tax (Fifth Amendment) Rules, 2015.

 (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, –
(1) in rule 114, –

(a) in sub-rule (1), the following proviso shall be inserted, namely:-

“Provided that in case of an applicant, being a company which has not been registered under the Companies Act, 2013 (18 of 2013), the application for allotment of a Permanent Account Number may be made in Form No. INC-7 specified under sub-section (1) of section 7 of the said Act for incorporation of the company.”;

(b) in sub-rule (4),-
(i) in the opening portion, after the words, brackets and figure “referred to in subrule (1)” the brackets, words and figure “[other than that referred to in the proviso to sub-rule (1)]” shall be inserted;

(ii) in the TABLE, in column (4),-
(I) against Sl. No. (1), for item (C) the following item shall be substituted, namely:-

“(C) Proof of date of birth—
copy of the following documents if they bear the name, date, month and year of birth of the applicant, namely:-—

(a) birth certificate issued by the municipal authority or any office authorised to issue birth and death certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of subsection (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or

(b) pension payment order; or
(c) marriage certificate issued by the Registrar of Marriages; or
(d) matriculation certificate or mark sheet of recognised board; or
(e) passport; or
(f) driving licence; or
(g) domicile certificate issued by the Government; or
(h) aadhar card issued by the Unique Identification Authority of India; or
(i) elector’s photo identity card; or
(j) photo identity card issued by the Central Government or State Government or Central Public Sector Undertaking or State Public Sector Undertaking; or

(k) Central Government Health Service Scheme photo card or Exservicemen Contributory Health Scheme photo card; or

(l) affidavit sworn before a magistrate stating the date of birth.”;
(II) against Sl. No. 3, for the words “Copy of Certificate of Registration issued by the Registrar of Companies.”, the following shall be substituted, namely:-

“(a) Copy of Certificate of Registration issued by the Registrar of Companies;
or
(b) corporate identity number allotted by the Registrar under section 7 of the Companies Act, 2013 (18 of 2013).”;

(2) in rule 114A, in sub-rule (1), the following proviso shall be inserted, namely:-
“Provided that in case of an applicant, being a company which has not been registered under the Companies Act, 2013 (18 of 2013), the application for allotment of a tax deduction and collection account number may be made in Form No. INC-7 specified under sub-section (1) of section 7 of the said Act for incorporation of the company.”.

Download Form INC-7
Tags-form inc-7,inc-7 form pan,inc-7 company pan

Saturday, April 11, 2015

How to claim 4% SAD refund

Custom department issued a circular no. 12/2015 dated 9 April 2015 about instruction on 4% refund claim of SAD. Full circular is as under.

 I am directed to refer to the Board Circular No 6/2008-Customs dated 28.04.2008 which prescribes the manner of claim and sanction of 4% SAD refund in terms of notification No. 102/2007-Customs dated 14.09.2007. Further, in terms of Para 4.2 of Board Circular No 6/2008-Customs, dated 28.04.2008, it is provided that an importer can file only one refund claim in month in a Commissionerate. However, representations have been received in the Board that this stipulation is not feasible in the Commissionerate having Customs locations widely spread and in situations where imports are made by an importer from more than one Customs location in a Commissionerate. Accordingly, it is requested that the extant provisions be simplified.

2. The matter has been examined by the Board. As a trade facilitation measure, it is decided that importers may file refund claim of 4% SAD refund in terms of notification No. 102/2007- Customs dated 14.09.2007 at the Customs stations where imports are made. However, the number of such claims at a Customs station shall be limited to one in a particular month.

3. Board Circular No. 6/2008-Customs dated 28.04.2008 stands modified to the above extent.

4.  Board desires that above guidelines may be brought to the notice of field formation working under their jurisdiction.

5.  Difficulty faced if any, in implementation of this Circular may be brought to the notice of the Board at an early date.