Income tax amend rules on depreciation

Income tax department has amended the rules about depreciation. The amend rule is that depreciation is restricted to 15% on wind mills installed after 31 March 2012. Income tax department has issued a notification no. 15 about the amended rule about depreciation. Full notification is as under.

depreciation , INCOME TAX

Central excise clarification about exemption on mega power project

Central excise department gives clarification about the exemption of excise duty on mega power project. Excise department also clarifies the rules and the requirement of FDR to avail the exemption to excise duty on this project. Excise department issued a circular no. 963 dated 29-03-2012 about this clarification. Full circular is as under.

central excise

Time to get refund of 4% CVD is extended to 30 June 2012

Custom department has extended time to get the refund of 4% CVD(SAD) TO 30 June 2012. This extension is for re-using CVD amount in DEPB facility. Custom department has issued a circular no. 10 dated 29-03-2012 about this extension. Full circular is as under.

custom

New income tax forms for assessment year 2012-13

Income tax department has issued new income tax return form for the assessment year 2012-13. These form are used to filing the income tax return for assessment year 2012-13 and the financial year 2013-14. Income tax department issued new forms which are as follows.

income tax forms

ALL ABOUT TAX DEDUCTION AT SOURCE (TDS)

THE tax season is here. And if you are an employee you can’t blame your employer for deducting large chunks of money from your salary towards tax deducted at source (TDS), which he is legally obliged to do. 

Your bank will also deduct some percentage from your FD interest of Rs 10,000 or more towards TDS! So what is this TDS all about? How is it computed? Are there any changes this year? Read on...

ALL ABOUT TDS , e-tds intermediary , TAX DEDUCTION AT SOURCE

Finance Ministry clarifies on excise duty on jewellery

CBEC gives the clarification about levy of excise duty on precious metals. In this clarification the finance ministry clarifies about rate of excise duty, product wise excise duty, cenvat facility for excise duty and keeping books of accounts and filing the return of the excise duty on jewellery. There is a bid drama going on to levy of excise duty on jewellery in different states by the jewellers. So this clarification was a must do thing from the CBEC end. Full clarification is as under.

central excise

Rate of interest on term deposit, RD, NSSC and PPF etc. increased

The rate of interest on small saving scheme like term deposit, recurring deposit, national small saving scheme and public provident fund has been increased. The new rates are for financial year 2012-13 and will effect from 01-04-2012. This is the second time in a year when the rates are increased as the saving rate was also increased on 01-11-2011. The ministry of finance released office memorandum dated 26-03-2012 about the rate of interest increased. The new rates as well as old rate of interest on ppf, nssc, term deposit, rd etc. are as follows.

banking , INTEREST RATES , public provident fund , rate of interest

Revised treaty of trade between India and Nepal

Custom department has clarified the import and export trade to Nepal. In this clarification the custom department said the duty refund procedure on import and export is fully valid to Nepal even if the trade is done in Indian rupees. Full revised treaty is as under.

business , custom

Government employees may get additional 7% DA soon

Government employees may get an additional seven per cent dearness allowance with effect from January 1, 2012. The Cabinet is expected to take a call on this proposal on Friday. The dearness allowance (DA) is revised twice every year on the basis of change in the consumer price index (CPI). The CPI inflation stood at 8.83 per cent (combined) for the month of February, higher than the 7.7 per cent in January. The Reserve Bank of India in its review of monetary policy on March 15 said “price pressures persist at the retail level”.

dearness allowance , salary

Custom exemption on import of ore concentrates

Custom department gives clarification about exemption on import of ore concentrates. Custom department issued a circular no. 9 dated 23-03-2012 about this clarification and differs ore and ore concentrates. Full circular is as under.

custom

Procedure of online rectification request for intimation to CPC Bangalore

Sometimes there can be some errors in the intimation send by CPC Bengaluru under section 143(1) of income tax act. One needs to make it correct as this is the matter of money. There is a complete procedure of how to rectify the intimation from CPC Bangalore by submitting online rectification request. The procedure is as follows.

INCOME TAX , income tax return

Exempt services from service tax

Service tax department issued the list of negative services in which service tax is exempted. There are many services some of public health and safety and some for business which are exempted from service tax. There is a complete list of service in which no service tax is applied.

SERVICE TAX

Changes in time of payment of service tax

Service tax department has amend some changes in the matter of time of paying service tax. Service tax department has issued a notification no. 4 dated 17-03-2012 regarding this issue. In this notification the service tax department has changed the following term of payment of service tax.

SERVICE TAX

CASH CREDIT ACCOUNT INTEREST CALCULATOR

Cash credit:- Cash Credit is the loan account taken by the customers from the bank. Cash credit is also called CC limit. In this account the bank gives loan to the customers and the limit amount will be credited to their account. For example if A company has the limit of 10 lakh rupees of CC account, the bank will be credited 10 lakh rupees in A company as soon as the limit is approved. The benefit of this account is that the interest will be charged on the withdrawal amount and not the limit amount. Interest will be charged every month and by the product basis method.

EXCEL CALCULATOR

Central excise duty rate for financial year 2012-13

 There is always confusion and less knowledge about the central excise duty on different products. The excise duty is vary from product to product and in manufacturing line, it is necessary to know the excise duty rate well before the start of production. In this annual budget, the rates of excise duty have been increased to 12% from the existing 10%. This rate will be applicable from 01-04-2012. But it is not that all the products have similar excise duty. The excise duty can be different in these points which are as under.

- Totally exempt excise duty such as tea and condensed milk.

- 1% excise duty on the products which have the facility of less excise duty like articles of jewellery.

- 3% excise like gold

- 6% excise on paper, cotton and biscuits etc.

- 12% excise on motor vehicles

- Production base excise duty on aluminum circles and trimmed and untrimmed circles of copper.

- High excise duty on large cars, cigarettes and tobacco products.

So there is a complete list of excise duty products as well as no excise duty products with rate of duty on different products.

See the complete list from here

central excise

All About Section 80C deduction of Income tax

Section 80C of income tax act:- In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include: 

ALL ABOUT , all about section 80c , section 80c of income tax

Limit of Turnover for audit section 44AB has increased to 1 Crore

Under section 44AB of income tax act, every person who is running a business or profession needs to get his accounts audited for filing the income tax return. However, there is a limit in this provision above this it must to get his account audited. Section 44AB gives some relief to the small and medium enterprises in this section. According to the relief under section 44AB the person carrying on business needn’t to get his account audited if the total turnover/sales/receipt of the year not exceeds Rs. 60 lakh.

INCOME TAX , INCOME TAX SECTION

Central excise on cotton and goods of cotton

In this annual budget, there are some changes made in the central excise duty on cotton and goods of cotton. Central excise department also issued a notification about excise on cotton and cotton goods. Central excise department issued notification no. 7 Dated 17-03-2012 about the excise on cotton products. Full notification is as under.

central excise

Excise duty and Custom rates after budget

In this union budget, Finance Minister has purposed some changes in the rates and duties of central excise as well as in custom duty rates. In some products excise duty has decreased or removed and on some products it increases. Basic excise duty is increased 10% to 12%. Similarly the changes are done in custom duty also. So knowing the rates and custom duty for the financial year 2012-13 is very necessary to to the business as it matters the most. So this post is to all about the rates of custom and central excise duty for the financial year 2012-12 which is as follows.

central excise , custom

Section 80TTA deduction on interest on saving account

 A new deduction in the income tax has been introduced in this budget, interest on saving account deduction. Under section 80TTA of income tax act, the deduction is allowed on saving account interest up to 10000 per annum. This deduction is available to individual and HUF. This deduction is available to interest on saving account and not to time deposit. The saving account may be with any of the three mentioned below.

INCOME TAX SECTION

New income tax slabs for financial year 2012-13

In this annual budget of 2012, the Finance Minister has changed the income tax slabs for the fianacial year 2012-13. In this new income tax slabs the exemption limit has raised by Rs. 20000 TO 2 Lakh rupees. In this budget the difference between men and women income tax exemption has been removed. Now both genders have the same exemption limit of Rs. 2 lakh. 

INCOME TAX , income tax slabs

New call centre numbers for income tax e-filing

Income tax e-filing system has given a new call centre numbers to assessee. This number is to help in various regards in the matter of helping in e-filing of income tax return.

New e-filing call center has started working from 15th March 2012. For any query related to online filing of Income Tax Returns, please call 080-25186960between 9am to 6 pm on all working days. Taxpayers are advised to make use of this facility. 
Tin-call centre number of income tax,income tax call centre number,income tax call centre no.,e-filing of income tax no.,e filing of income tax helpline no.

INCOME TAX

RBI has increased bank rate by 350 basis points

Reserve bank of India has increased bank rate by 350 basis points. RBI has fixed new bank rate 9.5% which was 6% earlier. RBI has issued a circular no 63 dated 15-03-2012 about this issue. Full circular is as under.

bank rate , banking , rbi

Transfer of capital assets by way of relinquishment

Transfer of capital assets by way of relinquishment under section 2(47) (i) of income tax act.

A relinquishment takes place when the owner withdrawals himself from the property and abandons his right thereto. The property continues to exist after relinquishment [CIT vs. Rashiklal Naneklal (HUF)(19987) 177 ITR 198].

capital gains

Changes in CENVAT rules by Central Excise

Central excise department has made some modifications in the rules of CENVAT or modvat rules. According to this rule one can adjust the excise duty paid on purchase against the sale. These changes are one because of some illegal news for crediting modvat claim. Excise department has issued notification no 3,4,5 dated 12-03-2012 about this rule. Full notifications are as under.

central excise

Transfer of capital assets by way of exchange

Transfer of capital assets by way of exchange under section 2(47) (i)

Transfer includes exchange. When two persons mutually transfers the ownership of one thing for the ownership of another but none of the things is money, the transaction is called exchange under section 118 of the transfer of property act 1982). The word exchange is not limited to immovable property. It also includes barter of chattels. Thus conversation of preference shares into ordinary shares is an exchange. Similarly where assets are transferred to a company in lieu of allotment of shares it is a case of an exchange and not sale.

capital gains

Transfer of capital assets by way of sale

Transfer of capital assets by way of sale under section 2(47) (i) of income tax act.

Transfer includes sales of a capital assets. The sale may be voluntary or involuntary, for example sale at the instance of decree holder under court orders also results in transfer of property.

capital gains

Procedure to convert form 16 and 16A zip file to pdf file

Tin.nsdl has provided the complete procedure to convert form 16 and 16A zip file/text file to pdf file. Earlier there was a big confusion about this issue as the form 16 and 16A are available to download from the tin website but converting the file to pdf was not easy. There is the complete procedure to convert form 16 and 16a zip file to pdf file.

form 16-16a fuv software , TDS

Loan against PPF account

One should know that one can avail the loan on PPF (Public Provident fund) account. But there are some rules and regulations for getting loan on PPF account which are as under.

all about public provident fund , ppf , public provident fund

RBI has reduced Cash reserve ration by 75 basis point

Reserve Bank of India has reduced cash reserve ratio by 75 basis points. Cash reserve ratio is the ratio of which banks need to deposit the part of their money with the RBI. This will reduce the rate of interest and loans interest rate. RBI has issued a circular no. 86 dated 09-03-2012 about this issue. Full circular is as under.

crr , rbi

What is bank rate and bank rate aspects

Many of us heard a lot about bank rate but don't know what is bank rate. Bank rate is completely different from rate of interest as well as interest rate. Reserve bank of India has cleared the term bank rate with circular no. 26 dated 07-03-2011 which is as follows.

banking

Installation of towers on roof is income from other sources and not income from house property

IT : Income from installation of towers/antennas on roof top/from display of signage/parking space rent not income from house property but income from other sources

INCOME TAX , TDS

Ban on export of cotton

Custom department has banned on exports of cotton. Custom department issued a circular no. 6/2012 dated 05-03-2012 about ban on export of cotton till further orders. Full notification is as under.

custom

ALL ABOUT ADVANCE TAX IN INDIA AND EXCEL CALCULATOR

Advance tax is basically a device to ensure regular flow f revenue to the government so as the expenditure can be incurred by the government all over the year and not once in a year. An assessee need to pay the taxes only after the completion of the previous year on the previous year income but in the rule of advance tax, the assessee needs to estimate the preassumed earning and need to pay the advance tax of the quarter accordingly. Advance taxes ruling are as under.

advance tax , advance tax calculator

No need to file income tax return if bank interest is less than 10000 and salary income

Income tax act will exempt the assessee to file income tax return to whom whose salary income is 5 lakh or less under section 139 of income tax act. This act will be in force from the financial year 2012-13. In this regard income tax department also adds that the salary holder whose bank interest income is less than 10000, will also qualify for not submitting income tax return. Full notification is as under.

NOTIFICATION NO. 9/2012 [F. NO.225/283/2011-ITA(II)], DATED 17-2-2012

S.O........... (E). - In exercise of the powers conferred by sub-section (IC) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2012-13, namely:-

1. Class of persons. -An individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,-

(A)  "Salaries";

(B)  "Income from other sources", by way of interest from a saving account in a bank, not exceeding ten thousand rupees.

2. Conditions,- The individual referred to in para 1,-

 (i)  has reported to his employer his Permanent Account Number (PAN);

(ii)  has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;

(iii)  has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;

(iv)  has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;

(v) has no claim of refund of taxes due to him for the income of the assessment year, and

(vi)  has received salary from only one employer for the assessment year.

3. The exemption from the requirement of furnishing a return of income tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.

4. This notification shall come into force from the date of its publication in the Official Gazette.

INCOME TAX , income tax return

Exemption of section 10(46) in statutory body/authority/board or commisson

Income tax department has issued a notification about section 10(46) exemption in statutory body/authority/board or commission. Income tax department ha issued notification no. 12/2012 dated 28-02-2012 about this issue. Full notification is as under.

INCOME TAX NOTIFICATION

Exemption of section 10(46) in national skill development corporation

Income tax department has issued a notification about section 10(46) of income tax act exemption on National skill development corporation. Income tax department issued notification no. 11/2012 dated 28-02-2012 about this issue. Full notification is as under.

INCOME TAX NOTIFICATION

TAN password reset and link activation

Income tax department has clarify as how to reset the password for submit online returns  and howto activate the  links. In this regard income tax department has given an email id on which the account password as well as link will be activated. Full clarification is as under.

INCOME TAX

Using own funds or take loan for house calculator

In today world where land and making house is so much costly, the aim of most of the people is to have their house. So the purchase a house has the two options, either use your own funds to buy a house or borrow money from different sources to purchase a property. The two options are available but one can’t say which one is good. If the loan is available at good rates, one have the option to borrow where if the own funds aren’t sufficient, one also need to look for borrowing money. Borrowing money has the three main factors which effect on the long term to your pocket which are as follows.

The loan amount

Rate of interest you need to pay on loan

Loan tenure on which you will pay the entire loan with interest.

With above three factors, the financial institutions where the loan is taken, makes the EMI (equal monthly installments). The rate of interest is the main factor in these three and any changes in the rate of interest will change either the EMI amount or the tenure of the loan. For example if there is a loan in 2007 at 8%, and it jumps to 12-13% in 2011-12, the loan tenure will increase 5-6 years with the same EMI or the EMI will be increased to 20-22%.

Using own funds is also an option to buy this house. In this option one need to calculate the return on income. It means that what he will earn with this capital if he doesn’t use his own funds to buy a house. Suppose one has the return on income at 20% annually and he has the option to get the loan at 13%. He should take the loan instead of using own funds. If the return on income is less than the interest rate, one should use his own funds to buy a house.

So this decision making is hard as needs a lot of calculation with income and income tax point of view. So there is a calculator loan vs. own funds calculator which can be very handy to calculate the things for you.

Download calculator from here

Tags-home loan calculator,house loan calculator,how to take the house loan calculator,own funds vs home loan calculator,own funds vs loan calculator

EXCEL CALCULATOR