Apr 30, 2012

Harmonisation of service tax and central excise registration

2:54 PM
Harmonisation of service tax and central excise registration
Service tax and central excise department has made registration very simple and almost the same for both the department. Service tax and central excise department also issued revised format for return for both the taxes. The department issued a draft circular about the registration of excise and service tax which is as follows.

Apr 29, 2012

One can transfer bank account from one place to other

2:26 PM
One can transfer bank account from one place to other
There is a portability in the bank accounts where the bank remains same. Like one has the bank account with SBI, Delhi and the account holder transfers to Mumbai. He can transfer his bank account with any of Mumbai branch and can deal with same account number.

Apr 28, 2012

TCS deduction is similar deduction as TDS

1:56 PM
TCS deduction is similar deduction as TDS
The purpose of section 206C is that the seller will collect tax from the purchaser in respect of sale of alcoholic liquor, forest timber, tendu leaves, scraps, etc., at the specified percentage as tax on income from dealing with these goods by the purchaser. This is similar to deduction of tax at source by the payer. Such tax collection at source is paid to the government on behalf of the purchasers of these goods.

Service tax on services provided by agriculture produce marketing committee

1:51 PM
Service tax on services provided by agriculture produce marketing committee
Service tax department has issued a circular no. 157 dated 27-04-2012 about service tax on service provided by agriculture produce marketing committee APMC board. The full circular of service tax department is as under.

Apr 27, 2012

Revised excise and service tax return format

3:23 PM
Revised excise and service tax return format
Service tax and central excise department has revised format of return. The ER-1, ER-2  and ST-3 format has been revised. Return ER-1 needs to be filled monthly whereas ER-2 quarterly and ST-3 in every six month. The department has issued draft no. 201 dated 13-04-2012 about the revised process. The full draft is as follows.

Apr 26, 2012

WHAT IS HOUSE RENT ALLOWANCE

10:07 PM
WHAT IS HOUSE RENT ALLOWANCE
House Rent Allowance (HRA) is generally paid as component of salary package. This allowance is given by an employer to an employee to meet the cost of renting an accommodation. Section 10(13A) of the Income Tax Act provides for exemption of HRA based on certain rules. In order to claim HRA exemption, the following basic conditions should be met:

1. You should be staying in a rented accommodation.
2. The house should not be owned by you or your wife.
3. You should be paying the rent.

TO KNOW MORE CLICK HERE

Sale against F form

7:43 PM
Sale against F form
Q.1 The amended section 6A of CST Act, 1956 requires the transferor branch to obtain ‘F’ form from the transferee branch and on failure to obtain the same the transaction is presumed to be sale. Whether such amendment can be said to be constitutionally valid, as it may amount to levy of tax on Consignment?

HUF is also eligible for relief on income from house property

3:31 PM
HUF is also eligible for relief on income from house property
People always feel confused if we talk about income tax on house property whereas income tax laws are well defined on income from house property. Income tax on house property is well defined as any income from property which is let out on rent will be taxed under the head income from house property. The income will be deduct with any municipal tax paid, any interest re-payment on loan taken on the same property as well as standard deduction which is 30%.

Apr 19, 2012

Mobile companies need to deliver banking sms in 10 seconds

6:17 PM
Mobile companies need to deliver banking sms in 10 seconds
Almost all of us use sms alerts on mobile of the banking transactions. We often realise the time duration between the banking transaction and the sms alert. Even some sms comes the next day and some don't come even the transaction amount is high. We think that this is the fault of banks but this is the fault of mobile companies. They don't care about the security and the usefulness of the sms alerts to the customers.

Do and don't when applying PAN number in form 49A

5:54 PM
Do and don't when applying PAN number in form 49A
Income tax department has revised form 49A for applying PAN number. These are the do and don't when applying a PAN number in the form 49A.

Apr 18, 2012

Excise clarification on exemption to SEZ

5:18 PM
Excise clarification on exemption to SEZ
Central excise department gives clarification about exemption to Special economic zone. This includes the extension of exemption to different SEZ as well as the rules regarding. Excise department issued a circular no. 965 dated 17-04-2012 regarding the clarification on SEZ. Full circular is as under.

Apr 17, 2012

Section 50C of income tax not applicable to a builder

3:14 PM
Section 50C of income tax not applicable to a builder
Section 50C of income tax act is not applicable to a builder as his assets as plots and buildings are his stock in trade and not capital assets.

Apr 16, 2012

TDS on rent New Provision

1:40 PM
TDS on rent New Provision
  TDS  on Rent comes under section 194-I of the Income tax Act.  The newly amended 194-I section states that, the renting of Plant/Machinery/Equipments for all parties will entertain TDS at 2% and renting of Land/Building/Furniture/Fittings at 10% for all types of assessees.

Apr 13, 2012

Revised Form 49A and 49AA for PAN application form

10:30 PM
Revised Form 49A and 49AA for PAN application form

Income tax department has revised new PAN application form 49A and 49AA. Earlier, income tax department has changed the forms to 49A and 49AA. Now some amendments are made in these forms which will be effect from 8 April 2012. Now for applying for Permanent account number(PAN) one needs to fill these forms and submit to tin.nsdl.

How to apply online application in form 49A for apply PAN number

10:28 PM
How to apply online application in form 49A for apply PAN number
Tin.nsdl has revised form 49A for applying PAN number. There is a complete procedure for applying PAN number online. For applying PAN number, resident of India needs to file Form 49A. The complete procedure is as follows.

Apr 12, 2012

All government payments above 25000 will be paid direct to bank account of payee

1:45 PM
All government payments above 25000 will be paid direct to bank account of payee
Government of India passes a rule that all government payment such as builders, contractors, suppliers etc. will be paid to the direct bank account of the payee. This step is taken to make the system clear and to nap the corruption in India. This rule is applicable from 01 April 2012. All the payment above 25000 will be e-payments and this rule will surely control the corruption as well as commission system. Government of India has issued a notification in this regard which is as follows.

Apr 11, 2012

All about section 54EC of income tax act

11:02 PM
All about section 54EC of income tax act
1. Section 54EC of the Income-tax Act, 1961 allows a deduction in respect of long-term capital gains arising from transfer of any long-term capital asset ("original asset") where the following conditions are satisfied:
(i)  The assessee invests the whole or any part of such long-term capital gains in the long-term specified asset i.e. bonds redeemable after three years issued by NHAI/REC.
(ii)  Such investment is made "at any time within a period of six months after the date of such transfer".
(iii)  The investment so made by an assessee during any financial year does not exceed Rs. 50 lakhs. This condition is imposed by the Proviso to section 54EC(1).
If all the above conditions are satisfied, any assessee shall be entitled to deduction of entire amount of capital gains if the entire amount is so invested. If only part of the capital gains is invested, deduction of proportionate amount shall be allowed. It should be noted that the interest from the NHAI/REC bonds (long-term specified asset) are not tax-free but liable to be taxed in full.
Interpretation of the proviso to section 54EC(1) - The Rs. 50 Lakhs Cap
2. The proviso to section 54EC(1) reads as under:
"Provided that the investment made on or after the 1st day of April, 2007 in the long term specified asset by an assessee during any financial year does not exceed fifty lakh rupees"
The question that arises in respect of the proviso to section 54EC(1) is whether the cap of Rs. 50 lakhs imposed by it applies to investment in a financial year or to the deduction allowable in respect of a financial year. In other words, can an assessee who transfers a capital asset in the second-half of a financial year i.e. on or after 30th September and makes a capital gain of Rs. 1 crore or more, claim a deduction of Rs. 1 crore by investing Rs. 1 crore in specified bonds within 6 months of transfer Rs. 50 lakhs in the financial year of transfer of capital asset and Rs. 50 lakhs in next financial year?
In a recent decision - Aspi Ginwala v. Asstt. CIT [2012] 20 taxmann.com 75 (Ahd. - Trib.), the Tribunal answered the above question in the affirmative. The Tribunal held that it is clear from the proviso to section 54EC(1) that where assessee transfers his capital asset after 30th September of the financial year he gets an opportunity to make an investment of Rs. 50 lakhs each in two different financial years and is able to claim exemption upto Rs. 1 crore under section 54EC of the Act. Since the language of the proviso is clear and unambiguous, assessee is entitled to get exemption upto Rs. 1 crore.
Practical difficulty However, even though law as interpreted by the Tribunal permits deduction of Rs. 1 crore to be claimed under section 54EC by following the above strategy, a practical difficulty arises. What if there is no issue of REC/NHAI bonds open to invest in next financial year during the time-limit of 6 months from date of transfer of capital asset? In the above case, the assessee sold his property on 22-10-2007 and invested Rs. 50 lakhs in specified bonds (REC Bonds) on 31-12-2007 (i.e. within the 6 months period). Assessee invested Rs. 50 lakhs in NHAI bonds in next financial year on 26-5-2008 (after the 6 months time limit) since, there were no specified bonds available for subscription from 1st April, 2008 to 21-4-2008 during the next financial year. As during this period from 1-4-2008 to 26-5-2008 subscription in eligible investment was closed, the investment made by the assessee on 26-5-2008 i.e. 1st day of the reopening of the subscription of eligible investment in NHAI Bonds and assessee contented that this should be treated to be in time. Relying on the following passage from Ram Agarwal v. Jt. CIT [2002] 81 ITD 163 (Mum.) in the context of section 54F, the ITAT upheld assessee's contention:
"In regard to claim of exemption under section 54F we may mention that it is found by the learned CIT(A) that the bank was closed on 31-8-1995 on account of strike as certified by the officials of the concerned bank. From the certification given by the bank officials, the assessee had approached the bank officials with the cheque for the amount of deposit on 30-8-1995. The assessee remained unable to obtain receipt on 31-8-1995 due to bank strike and the cheque was cleared on 1-9-1995. In this view of the situation, it can well be said that the deposit of the assessee was in accordance with the provisions of statute as on the last date i.e. the 31-8-1995, the deposit could not be made due to the reason which was beyond the control of the assessee particularly in view that the efforts were made by the assessee a day prior to last date to deposit the requisite amount in the bank to make him entitle for exemption under sec. 54F. ………."
Since no contrary decision was cited on behalf of the Revenue, ITAT applied the above decision and held that the investments made by the assessee on 26-05-2008 beyond six months is eligible for exemption in view of the fact that no subscription for eligible investment was available to the assessee from 1st April, 2008 to 26-05-2008. The whole idea appears to be not to penalize an assessee where he is not at fault and unable to comply due to reasons beyond his control and acts with due diligence to comply at the first opportunity available to him.
Thus, the strategy for maximizing the exemption under section 54EC is as under:
  •  Transfer long-term capital asset from which taxable capital gains will be Rs. 1 crore or more in the second half of a financial year i.e. after 30th September but on or before 31st March.
  •  Invest Rs. 50 lakhs in specified bonds in the financial year of transfer itself.
  •  Invest Rs. 50 lakhs in specified bonds in the next financial year within 6 months time-limit i.e. 6 months from the date of transfer of capital asset. If no issue of specified bonds is open during next financial year, then investRs. 50 lakhs on the first day of opening of the first issue of eligible bonds (REC/NHAI bonds) during the next financial year.
Contrary Decision of ITAT
3. In Asstt. CIT v. Shri Raj Kumar Jain & Sons (HUF) [2012] 19 taxmann.com 27 (Jp.), the ITAT had taken a contrary view since taking a view that assessee who transfers a capital asset in the second half of a financial year (1st October to 31st March) can claim a deduction of Rs. 1 crore is unfair to assessees who transfer a capital asset in the 1st half of a financial year who can claim a deduction of only Rs. 50 lakhs. The Tribunal observed as under:
"The ld. DR during the course of proceedings before us has fairly contended that the interpretation which the ld. AR wants to place on the proviso to Section 54EC will enable the assessee to claim exemption of around Rs. 1.00 crore. In case, the transfer of assets has taken place from 1st Oct. to 31st March because the assessee will be able to invest Rs. 50.00 lakhs in a financial year in which the transfer has taken place and Rs. 50.00 lakhs in subsequent financial year. However, the assessee's who have earned the capital gain on transfer of assets from Ist April to 30th Sept. will be able to have deduction only of Rs. 50.00 lakhs. We therefore, feel that assessee in the instant case is entitled to exemption of Rs. 50.00 lakhs u/s 54EC and it is not the case where two interpretations of Section 54EC are possible"
Departmental views in CBDT Circulars
4. CBDT's Circular No. 3/2008, dated 12-3-2008 explains the proviso introduced by the Finance Act, 2007 as under:
"28.2 The quantum of investible bonds issued by NHAI and REC being limited, it was felt necessary to ensure that the benefit was available to all the investor. For this purpose, it was necessary to ensure that the limited number of bonds available for subscription is also available for small investors. Therefore, with a view to ensure equitable distribution of benefits amongst prospective investors, the Government decided to impose a ceiling on the quantum of investment that could be made in such bonds. Accordingly, the said section has been amended so as to provide for a ceiling on investment by an assessee in such long-term specified assets. Investments in such specified assets to avail exemption under section 54EC, on or after April 1, 2007 will not exceed fifty lakh rupees in a financial year."
Thus, the above CBDT Circular not brought before ITAT in either of the above cases speaks of 'ceiling on quantum of investment' rather than 'ceiling on quantum of deduction'.
Where the Act or even Departmental Circulars intend that it is a ceiling on deduction in respect of amounts invested in a financial year rather than a ceiling on quantum of investment to be made in a financial year, they say so explicitly. Take the example of section 80CCF. The text of section 80CCF reads as under:
"Deduction in respect of subscription to long-term infrastructure bonds.
80CCF. In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, the whole of the amount, to the extent such amount does not exceed twenty thousand rupees, paid or deposited, during the previous year relevant to the assessment year beginning on the 1st day of April, 2011 or to the assessment year beginning on the 1st day of April, 2012, as subscription to long-term infrastructure bonds as may, for the purposes of this section, be notified by the Central Government."
Thus, section 80CCF clearly says that invest all that you want in infrastructure bonds but deduction shall be limited to Rs. 20,000 and only what is paid or deposited during the previous year will be considered for deduction under that section. If same interpretation was to be placed on the proviso to section 54EC(1)-that amount of deduction will be limited to Rs. 50 lakhs and only amounts deposited during financial year shall be considered, nothing prevented Parliament from drafting the proviso to section 54EC(1) along the lines of section 80CCF.
CBDT's Circular No. 1/2011, dated 6-4-2011 explains section 80CCF as under:
"14. Deduction in respect of long-term infrastructure bonds
14.1 In tune with the policy thrust of promoting investment in the infrastructure sector, a new section 80CCF was inserted in the Income-tax Act to provide that subscription during the financial year 2010-11 made to long-term infrastructure bonds (as may be notified by the Central Government), to the extent of Rs. 20,000, shall be allowed as deduction….."
Conclusion
5. It is clear from CBDT's Circular No. 3/2008, dated 12-3-2008 as also from a comparison of section 54EC and section 80CCF thatthe cap of Rs. 50 Lakhs in the proviso to section 54EC(1) is an investment cap and not a deduction cap. The decision of the Tribunal in Aspi Ginwala (supra) is in line with the language of the provisions of the Act and CBDT's Circulars. It is submitted that the contrary views of ITAT in Shri Raj Kumar Jain & Sons (HUF)(supra) (which appears to be guided by notions of unfairness to assessees who transfer assets in the first half of the financial year rather than the text of the provisions and CBDT circulars) needs reconsideration. In any case, if two contrary views are there on an issue, Tribunal will be guided by the view favourable to the assessee. From that angle, the view in Aspi Ginwala (supra) has to be preferred to the view in Shri Raj Kumar Jain & Sons (HUF)(supra)This principle has been endorsed by ITAT in a recent case where there were two contrary ITAT decisions on non-compete fee and view favourable to assessee was applied by Tribunal to decide the case.

Common tax code for service tax and central excise

10:59 PM
Common tax code for service tax and central excise
 As announced by the Union Finance Minister, Shri Pranab Mukherjee  in his Budget speech, a Study Team has been set-up by the Government, under the leadership of Shri. M. K. Gupta to examine the possibility of a common tax code for service tax and central excise, which could be adopted to harmonize the two legislation. Shri M K Gupta, a retired IRS officer, is a former vice-Chairman of the Customs and Central Excise Settlement Commission.The Study Team will examine the feasibility and also suggest a draft Common Tax Code for service tax and central excise that can be implemented under the present Constitutional scheme, keeping in view the challenges in the context of impending Goods and Service Tax (GST). The Study Team has also been directed to address issues relating to input tax credits with a view to simplify the existing scheme and to mitigate cascading to the extent possible, and to harmonize existing procedures and processes to make them more trade friendly.  The Study Team mayalso suggest any other measure that will help in reducing the cost of compliance for business or transition towards a comprehensive GST.

Shri M K Gupta, IRS (retd.)  is widely recognized for his in-depth knowledge and sound understanding of service tax and central excise law and procedure. He possesses vast experience of working in the Finance Ministry and also in the field formations of service tax and central excise. As part of its efforts, the Study Team will interact with various chambers of commerce and industry and recognized business and industry associations representing various segments of the services and manufacturing sector, as may be required. Government has directed the Study Team to submit its report by the 30th of September, 2012.

Apr 10, 2012

Changes in the rules of form 16A TDS certificate

1:49 PM
Changes in the rules of form 16A TDS certificate
Income tax department has amend some rules in the TDS certificate form 16A. Form 16A is the TDS certificate which is need to issue by the deductor to the dedcutee. So this is very important form as the deductee must need to file income tax return as well as to get income tax refund. Income tax department issued circular no. 1 dated 09-04-2012 about the form 16A. Full circular is as under.


SECTION 203 OF THE INCOME-TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - CERTIFICATE FOR TAX DEDUCTED - ISSUANCE OF TDS CERTIFICATES IN FORM NO. 16A DOWNLOADED FROM TIN WEBSITE
CIRCULAR NO. 01/2012 [F.NO. 276/34/2011-IT(B)], DATED 9-4-2012
1. Section 203 of the income-tax Act, 1961 ("the Act") read with the Rule 31 of the Income-tax Rules, 1962 ("the Rules") provides for furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars like amount of TDS, permanent account number (PAN), tax deduction and collection account number (TAN), etc. The relevant form for such TDS certificate is Form No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other provisions of Chapter XVII-B of the Act TDS certificate in Form No. 16 is to be issued annually whereas TDS certificate in Form No. 16A is to be issued quarterly.

2. For deduction of tax at source made on or after 01.04.2011, Circular No. 03/2011 dated 13.06.2011 stipulated mandatory issue of TDS certificate in Form No. 16A generated through TIN Central System and which is downloaded from the TIN website (www.tin-nsdl.com) with the unique TDS certificate number in cases of company Including a banking company to which the Banking Regulation Act, 1949 applies and any bank or banking institution, referred to in section 51 of that Act or a cooperative society engaged in carrying the business of banking. For other deductors, such stipulation was optional, Moreover, pursuant to the issue of the said circular, a deductor issuing Form No. 16A generated through TIN Central System and which is downloaded from the TIN website had an option to authenticate such TDS certificate by using digital signature.

3. With a view to further strengthen the administration of the issue of TDS and for proper administration of the Act the Board have, in exercise of powers under section 119 of the Act, decided the following:-

4.1 Issue of TDS Certificate in Form No. 16A
(I) For deduction of tax at source made on or after 01.04.2012: All deductors (including government deductors who deposit TDS in the Central Government Account through book entry) shall Issue TDS certificate in Form No. 16A generated through TIN central system and which is downloaded from the TIN website with a unique TDS certificate number in respect of all sums deducted on or after the 1st day of April, 2012 under any of the provisions of Chapter-XVII-B other than section 192.
In other words, the issuance of duly verified TDS certificate in Form No. 16A, by the deductor of any category shall henceforth be only through TIN Central System. The deductor shall therefore, download such certificate from the TIN Central System, verify the correctness of the contents mentioned therein and authenticate the correctness of the contents before issue of the said certificate.

(II) For deduction of tax at source made between 01.04.2011 to 31.03.2012: The stipulation prescribed in para 4.1 of the Circular No. 3/2011 dated 13.05.2011 shall continue to apply.

4.2 Authentication of TDS Certificate in Form No. 16A
(i)  The deductor, issuing the TDS certificate in Form No.16A by downloading from the TIN website shall authenticate such TDS certificate by either using digital signature or manual signature.

(ii)  Where the deduction has been done between 1st April, 2011 and 31st March, 2012 and the deductor being other than a company/bank or banking Institution/a cooperative society engaged in carrying the business of banking and who do not issue the TDS Certificate in Form No.16A by downloading from the TIN website shall authenticate such TDS certificate in Form No.16A by manual signature only.

5. The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purpose of issuance of TDS certificate in Form No.16A which is downloaded from the TIN website and shall be responsible for the day-to-day administration in relation to the procedure, formats and standards for issuance of TDS certificate in Form No.16A in electronic form.

6. It is further clarified that TDS certificate issued in Form No. 16A by the deductors in terms of para 4.1 read with para 4.2 above and in accordance with this circular alongwith procedure, format and standards specified by the Director General of Income-tax (Systems) shall only be treated as a valid TDS certificate in Form No. 16A for the purpose of section 203 of the Act read with Rule 31 of the Rules.
Tags-income tax form 16a,income tax form 16a rules,changes in the rules of form 16a,how to download form 16a,tds form 16a,tds certificate form 16a,circular no. 1/2012 income tax,income tax circular no. 1/2012

Service tax refund through electronic fund transfer

1:39 PM
Service tax refund through electronic fund transfer
Service tax department is constituted a committee for review the scheme of electronic fund transfer of service tax refund. Service tax department also issued a circular no. 156 dated 09-04-2012 about the scheme of electronic fund transfer of service tax refund. Full circular is as under.

Apr 9, 2012

How to fill ITR-4 income tax form

5:32 PM
How to fill ITR-4 income tax form
ITR-4 is the income tax form which is to be filled by individual or H.U.F carrying on the business or profession. But there are some points which needs to remember as how to fill income tax return form ITR-4. These are the instruction for filing income tax form ITR-4.

Custom department imposes anti dumping duty on phosphoric acid

5:19 PM
Custom department imposes anti dumping duty on phosphoric acid
Custom department has imposed anti dumping duty on phosphoric acid. Custom department issued notification no. 18 and 19 dated 04-04-2012 about imposing anti dumping duty on phosphoric acid. Full notification is as under.

Apr 8, 2012

EXCEL BASED CALCULATOR FOR LOAN EMI AMORTISATION SCHEDULE

10:08 PM
Confused how the banks calculate the amortisation schedule? How each EMI is broken into interest recovery and principal repayment. Use the link below to download a Microsoft Excel file which can be used to calculate Amortisation Schedule for your Home Loan, Auto Loan or Personal Loan. Also see the Annual and Monthly summary Loan Statement alongwith calculation for tax savings on interest deduction upto Rs 150,000 for Home Loan.

CLICK HERE TO DOWNLOAD CALCULATOR
Tags-loan emi calcylator,emi calculator,emi calculator india,loan emi calculator

Apr 7, 2012

Common registration form for central excise and service tax

6:27 PM
Common registration form for central excise and service tax
HARMONISATION OF SERVICE TAX AND CENTRAL EXCISE REGISTRATION

Apr 4, 2012

New return preparation utility RPU 2.8 for e-tds

8:18 PM
New return preparation utility RPU 2.8 for e-tds
Tin.nsdl has launched a new return preparation software RPU version 2.8. This software is used for filing e-TDS statements. This new RPU can be used for filing regular as well  as correction statements. There are many new features in this new RPU version 2.8 which are as under.

TDS Rate Chart for Financial Year 2012-13

2:54 PM
TDS Rate Chart for Financial Year 2012-13
TDS rates are modified in this annual budget. So there is a TDS chart for financial year 2009-10.


Male
Female
Senior Citizen
Tax (%)
For Income Between 0 to 1,60,000
For Income Between 0 to 1,90,000
For Income Between 0 to 2,40,000
0
For Income Between 1,60,001 to 3,00,000
For Income Between 1,90,001 to 3,00,000
For Income Between 2,40,001 to 3,00,000
10
For Income Between 3,00,001 to 5,00,000
For Income Between 3,00,001 to 5,00,000
For Income Between 3,00,001 to 5,00,000
20
For Income above 5,00,001
For Income above 5,00,001
For Income above 5,00,001
30




Surcharge


0

Education Cess


3

Form 26Q:
Section
Nature of Payment
Status
Tax (%)




193
Interest on Debentures & Securities

10
194
Deemed Dividend

10
194A
Other Interest
> Aggregate sum exceeding Rs. 10,000 for Banking Co’s , etc.per person during thefinancial year.
> Aggregate sum exceeding Rs. 5,000 per person during the financial year

10
194B
Lottery/Crossword Puzzle > Rs.5,000

30
194BB
Winnings from Horse Race > Rs. 2,500

30

194C

Contracts to Transporter, who has provided a valid PAN


0

Contracts to Individuals/HUF


1

Contracts to others


2

194D

Insurance Commission > Rs.5,000


10
194EE
Withdrawal from NSS > Rs.2,500

20
194F
Repurchase of Units by MF/UTI

20
194G
Commission on Sale of Lottery Tickets > Rs.1,000

10
194H
Commission or Brokerage > Rs.2,500

10

194I

Rent > Rs.1,20,000 p. a.
Rent of Plant & Machinery


2

Rent of Land, Building, Furniture, etc


10
194J
Professional or Technical Fess > Rs.20,000

10
194LA
Compensation on Compulsory Acquisition of immovable property >Rs.1,00,000 during thefinancial year

10

Surcharge


0

EducationCess


0


Note:  If there is no PAN details, then from 1st April 2010 TDS will be deduted at the rate of 20%.
Form 27Q:
Section
Nature of Payment
Status
Tax (%)




194E
Payment to nonresident sportsmen or sports association

10
195(a)
Income from foreign exchange assets payable to an Indian citizen

20
195(b)
Income by way of long-term capital gain referred to in sec. 115E

10
195(c)
Income by way of Short-term capital gains u/s. 111A

15
195(d)
Income from other long-term capital gains

20
195(e)
Income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency

20
195(f)
Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern after March 31, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso tosection 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A), to a person resident in India -


1.Where the agreement is made before June 1, 1997

30
2.Where the agreement is made after May 31, 1997 but before June 1, 2005

20
3.Where the agreement is made on or after June 1, 2005

10
195(g)
Royalty (not being royalty of the nature referred to in (e) sub para) payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy


1.Where the agreement is made after March 31, 1961 but before April 1, 1976
COMPANY
50
OTHERS
30
2.Where the agreement is made after March 31, 1976 but before June 1, 1997

30
3.Where the agreement is made after May 31, 1997 but before June 1, 1997

20
4.Where the agreement is made on or after June 1, 2005

10
195(h)
Fee for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with the policy -


1.Where the agreement is made after February 29, 1964 but before April 1, 1976
COMPANY
50
OTHERS
30
2.Where the agreement is made after March 31, 1976 but before June 1, 1997

30
3.Where the agreement is made after May 31, 1997 but before June 1, 2005

20
4.Where the agreement is made on or after June 1, 2005

10
195(i)
Any other income
COMPANY
40
OTHERS
30
196A
Income in respect of Units of Non-residents

20
196B
Income and Long-term Capital gain from units of an Off shore fund

10
196C
Income and Long-term Capital Gain from Foreign Currency Bonds or shares of indian companies

10
196D
Income of Foreign Institutional Investors for Securities

20

Surcharge ( On Tax)

Applicable for Foreign Companies if payment/credit exceeds Rs.1 crore of such companies

2.5

EducationCess

on Tax deducted Plus Surcharge

3
Form 27EQ:
Collection Code
Nature of Purchase
Tax (%)
6CA
Alcoholic liquor for human consumption
1
6CB
Timber obtained under a forest lease
2.5
6CC
Timber obtained under any mode other than forest lease
2.5
6CD
Any other forest product not being timber or tendu leave
2.5
6CE
Scrap
1
6CF
Parking Lot
2
6CG
Toll plaza
2
6CH
Mining and quarrying
2
6CI
Tendu leaves
5

Surcharge
(On Tax)

Applicable for Foreign Companies if collections exceeds Rs.1 crore of such companies

2.5

EducationCess

Applicable for Foreign Companies

3