Change in TDS rules effective from 01-11-2011

Change in TDS rules effective from 01-11-2011

Income tax department has amend some TDS rules which will be effective from 01-11-2011. Income tax department has issued a notification regarding this issue. In this notification income tax department amend rules which are as follows.
RBI has increased the housing loan limit and repayment period

RBI has increased the housing loan limit and repayment period

Reserve Bank of India has increased the housing loan limit and repayment period. RBI has issued a circular regarding this. RBI issued circular no. 7 dated 31-10-2011 about housing loan limit and repayment period. RBI under this circular increased the repayment period up to 20 years and loan limit to 30 lakhs and 70 lakhs Tier 1 USB and Tier 2 USB respectively. Full circular is as under.
Rates of duty drawback scheme for all industries for 2011-12

Rates of duty drawback scheme for all industries for 2011-12

There was a confusion going on from many days on the Duty Drawback scheme. The rates of duty drawback was also a main issue along with duty drawback entity. Custom department issued a circular regarding duty drawback scheme on 31-10-2011 about this issue. Custom department issued circular no. 48/2011 about rates of duty drawback scheme for all industries for 2011-12. Full circular is as under.

New PAN Application Form 49A and 49AA

Income tax department has issued new forms for PAN application. New forms no are 49A and 49AA which are used for different category. These both are two sets of form to be fill by the applicant. Form 49A is to be filed by the applicant who is the resident of India and Form 49AA is for the foreign resident.


There are the instruction for filing Form 49A and 49AA.
INSTRUCTIONS FOR FILLING FORM 49A
(a) Form to be filled legibly in BLOCK LETTERS and preferably in BLACK INK.

(b) Each box, wherever provided, should contain only one character (alphabet /number /
punctuation sign) leaving a blank box after each word.

(c) 'Individual' applicants should affix two recent colour photographs (size 3.5 cm x 2.5 cm) in
the space provided on the form. The photographs should not be stapled or clipped to the form.
The clarity of image on PAN card will depend on the quality and clarity of photograph affixed on
the form.

(d) Signature / Left hand thumb impression should be provided across the photo affixed on the
left side of the form.

(e) Signature /Left hand thumb impression should be within the box provided on the right side
of the form. The signature should not be on the photograph affixed on right side of the form. If
there is any mark on this photograph such that it hinders the clear visibility of the face of the
applicant, the application will not be accepted.

(f) Thumb impression, if used, should be attested by a Magistrate or a Notary Public or a
Gazetted Officer under official seal and stamp.

(g) AO code (Area Code, AO Type, Range Code and AO Number) must be filled up by the
applicant. These details can be obtained from the Income Tax Office or TIN Facilitation Centre
(TIN‐FC) may assist in doing so.

(h) Applicant can also search for AO details on www.tinnsdl.com
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RBI HAS INCREASED REPO RAE BY 25 BASIS POINT

RBI HAS INCREASED REPO RAE BY 25 BASIS POINT

Reserve Bank of India has increased liquid adjustment facility(LAF) by 25 basis points. RBI has presented the second quarter monetary policy of 2011-12 while increased the LAF. RBI has increased LAF by 25 basis points from 8.25% to 8.5% with immediate effect.

HAAPY DEEPAWALI

May This Diwali be as bright as ever.
May this Diwali bring joy, health and wealth to you.
May the festival of lights brighten up you and your near and dear ones lives.
May this Diwali bring in u the most brightest and choicest happiness and love you have ever Wished for.
May this Diwali bring you the utmost in peace and prosperity.
May lights triumph over darkness.
May peace transcend the earth.
May the spirit of light illuminate the world.
May the light that we celebrate at Diwali show us the way and lead us together on the path of peace and social harmony
“WISH U A VERY HAPPY DIWALI”
From:-
Taxalertindia
freeworking.hubpages.com
Nitin Aggarwal
SERVICE TAX ON SERVICE PROVIDERS ENGAGED IN CONSTRUCTION WORK

SERVICE TAX ON SERVICE PROVIDERS ENGAGED IN CONSTRUCTION WORK

Service tax department issued a circular about levy of service tax on the service providers engaged in construction work like roads,dam,airports, tunnels etc. Service tax department also classifies the contractor and sub contractor base with this circular and impose service tax accordingly. Service tax department levy service tax on construction sector with circular no. 147 dated 21-10-2011. Full circular is as under.
On Site Post Clearance Audit by Custom Department

On Site Post Clearance Audit by Custom Department

Custom department has started the facility of on site post clearance audit for the exporters and importers. This facility is very vital for both the importers and importers as they have cleared the past with the audit report. Custom department has issued a circular no 47 dated 21-10-2011 regarding this issue. In this circular custom department has made some clarification as well as some points which are neccessary for on site post clearance audit. Full circular is as under.
SERVICE TAX EXTENDS SUBMISSION OF HALF YEARLY RETURN TO 26-12-2011

SERVICE TAX EXTENDS SUBMISSION OF HALF YEARLY RETURN TO 26-12-2011

Service tax department has extended the last date of filing half yearly return of April 2011 to September 2011 from 25 October 2011 to 26 December 2011. Service tax department issued an order regarding this move. According to order no 1/2011 dated 20-10-2011, the service tax return filing last date has been extended. 
CUSTOM CIRCULAR NO 46 ABOUT EXPORT UNDER DUTY DRAWBACK SCHEME

CUSTOM CIRCULAR NO 46 ABOUT EXPORT UNDER DUTY DRAWBACK SCHEME

Custom department has issued a circular no 46 dated 20-10-2011 about export under duty drawback scheme. Custom department has amend in the rules of export under duty drawback scheme. Custom department also issued some instructions with the circular under section 74 of custom act. Full circular is as under.
CBDT HAS ISSUED DISCUSSION PAPER ON ACCOUNTING STANDARD

CBDT HAS ISSUED DISCUSSION PAPER ON ACCOUNTING STANDARD

Central board of direct taxes has issued discussion paper on accounting standard for the option and reviews by the stake holders. However it is accepted by the finance minister Mr. Pranab Mukharjee. Full issue of Discussion paper is as under.
TDS SECTION 196B OF INCOME TAX ACT

TDS SECTION 196B OF INCOME TAX ACT

Where any income is payable to an offshare funds that is any payment to fund, institution, association of body whether incorporated or not, which is established outside India in respect of units subscribed in foreign currency or where any long term capital gain arises on the transfer of such units, the payer of such income is liable to deduct tax on such income at the rate of 10%.

INDIA POST IS PLANNING TO SET UP ATM AND ISSUE DEBIT CARDS

Indian post is planning to issue debit cards to their customers and install ATM Centre in the post office to come in the race of banking activities. Indian post is planning to set up at least 1000 ATM center initially for this purpose by set up a subsidiary PBI (Post bank of India). India post has the large network in India in rural as well as in urban areas which has around 1.5 lakhs centers. Giving the ATM facility will increase the transactions as well as increase the network of India post.
STATES ARE PLANNING TO IMPOSE VAT ON SUGAR AND TEXTILE

STATES ARE PLANNING TO IMPOSE VAT ON SUGAR AND TEXTILE

GST (Goods & Service tax) starts taking its shape as the two VAT and sales tax exempted and the necessary items for general public will be come into the reach of VAT, Sugar and Textile. States are planning to impose VAT on sugar and textiles from the next financial year which is 01-04-2012.
INDIA WILL TAKE THE ISSUE OF EXCHANGING INFORMATION OF TAX IN G20 SUMMIT

INDIA WILL TAKE THE ISSUE OF EXCHANGING INFORMATION OF TAX IN G20 SUMMIT

Indian government is in great pressure on black money submitted in the foreign countries. So in the way to take money return home, India is ready to press automatic exchange of banking details and information of the individual accounts in G20 summit heading on 14-15 October in Paris (France).
RBI CHANGED THE NAME OF RATING SYMBOLS OF CREDIT RATING AGENCIES

RBI CHANGED THE NAME OF RATING SYMBOLS OF CREDIT RATING AGENCIES

Reserve Bank of India changed the rating symbols of different credit rating agencies. This step is taken due to the confusion about the rating system as different rating agencies give different rating to the same company with there analysis. So it is necessary now to put the credit rating agency name before the rating symbol. Reserve bank of India issued a circular no. 217 dated 13-10-2011 regarding this issue. Full circular is as under.
FACTORS WHICH DECIDE THE INCOME IS STCG OR BUSINESS INCOME

FACTORS WHICH DECIDE THE INCOME IS STCG OR BUSINESS INCOME

There is confusion between short time capital gain and business gain in the share trading on daily basis. As the market is moving up and down recently, investors use a simple funda, buying on low and selling on up on daily basis, which results in profit and loss. But these type of transaction attracts income tax. But the problem is that either it is a short time capital gain/loss or business profits/loss. The laws of India mostly believe on the recent tax cases. One of the recent tax case about these type of transaction decided by the income tax tribunal in Mumbai.
INCOME TAX REFUND WILL COME RAPIDLY FAST THIS YEAR

INCOME TAX REFUND WILL COME RAPIDLY FAST THIS YEAR

The number of return filed electronically has increased and hence increased the chances that the time in refund of income tax return will drop and the assesse will get early refund. The reason behind it is the e-filed return will automatic feed in the system and system automatically create the refund.
INDIA AND SWITZERLAND WILL SHARE TAX INFORMATION FROM NEXT FISCAL

INDIA AND SWITZERLAND WILL SHARE TAX INFORMATION FROM NEXT FISCAL

The ongoing visit of President Mrs. Pratibha Patil to Switzerland comes fruitful as both the countries India and Switzerland will start exchanging the matters of tax and money deposited in the accounts from the next fiscal of the countries which means January 1 2012 for Switzerland and April 1, 2012 for India. In the Swiss parliament, new tax exchange treaty is rectified which open the door for obtaining data of black money of the citizens of both the countries in each other country.


The black money in Swiss banks is the big issue in India because of many Indian politicians is involved in it. The recent hunger strike of Mr. Anna Hazare is also based on the corruption of the politician which opens the eyes of the general public. The government of India was in great pressure on the issue of black money as many of the ministers of UPA government are in the behind of bars because of corruption.
India and Switzerland has signed Double tax avoidance agreement on August 30,2011 after which it needs to present in the parliament of both the countries to make it law. Section 26 of income tax act defines the tax information data gathering from other countries to nab tax evaders.


The new rule will empower Central board of direct taxes (CBDT) to gather data with information and accounts regarding and examine the data. CBDT will have the power to get the accounts details of last 5 years which will be very beneficial for the country to nab black money.


What is Swiss bank funda: - In Swiss bank, the accounts holder need to pay charges to deposit there money, in regard there was no way to get the information of their account. So it was easy for the corrupt politician as well as black money holder to deposit the money in Swiss bank as income tax department cannot trace this money. The new rule will really become very hard for the black money holders.
RBI GIVES RELAXATIONS IN DOMESTIC MONEY TRANSFER

RBI GIVES RELAXATIONS IN DOMESTIC MONEY TRANSFER

Reserve Bank of India gives the relaxations in the money transfer in domestic country for the migrates and the people who doesn't have bank accounts for either reason and need the money which are transferreed by others through banking channels. RBI issued circular no 213 dated 05-10-2011 about relaxations in domestic money transfer which is as under.
SECTION 44AB OF INCOME TAX ABOUT AUDIT OF ACCOUNTS

SECTION 44AB OF INCOME TAX ABOUT AUDIT OF ACCOUNTS

If the total sales/turnover/receipts in the business for the previous year exceeds Rs. 60 Lakhs (from the financial year 2010, earlier Rs. 40 Lakh), it is obligatory for the person carrying such business to get its account audited before the specified dates.

CBDT HAS EXTENDED DUE DATE OF FILING INCOME TAX RETURN TO 31-10-2011

CBDT HAS EXTENDED DUE DATE OF FILING INCOME TAX RETURN TO 31-10-2011

Central Board of Direct taxes department has extended due date of filing income tax return for the assessment year 2011-12 from 30-09-2011 to 31-10-2011 for the assessee of Sikkim. This step is taken due to earthquake in Sikkim last month which cause life disturbance as well as life losses in Sikkim state. 

This is the power of income tax department under section 119 of income tax act to extend the due date of filing the income tax return as well as audit dates. Accordingly, CBDT also extends the audit report as prescribed under section 44AB of income tax act to 31 October 2011.
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