May 31, 2012

Settlement of cases in service tax

2:11 PM
Settlement of cases in service tax
Service tax department has issued a notification about settlement of cases in service tax. In this notification service tax department has included all the forms,application,fees,etc which is required to settle the cases with the department. Service tax department has issued notification no. 16/2012 dated 29-05-2012 about this issue. Full notification is as under.

Compounding offence in service tax

1:51 PM
Compounding offence in service tax
Service tax department has cleared the offences in service tax and also cleared the penalty as well as compounding amount one need to pay in different offences. Service tax department has issued a notification no. 17/2012 dated 29 may 2012 about the compounding offence in service tax. Full notification is as under.

May 30, 2012

All about section 80U exemption of income tax

10:50 PM
All about section 80U exemption of income tax
Income tax law gives a special deduction to the persons who suffer from some kind of disability. This comes under section 80U of income tax act in which the persons who are suffering from some kind of or total disability has the special relief in income tax act.
As per section (1) of section 2 of persons with disability the term ‘disability’ means in regard of section 80U of income tax act means:
1-      Blindness
2-      Low vision
3-      Hearing impairment
4-      Leprosy
5-      Moving disability
6-      Mental retardation
7-      Mental illness
8-      autism
9-      cerebral palsy
10-  multiple disability(more than 1 disability in this form)
The persons who are suffering with one disability can claim this deduction of income tax. The deduction amount is also vary to each like the person who is suffering from one disability can get the maximum deduction of 50000 whereas multiple disability persons can claim a deduction of 100000 of his/her gross income.
Before claiming the deduction of section 80U of income tax act, one needs to get the certificates from doctors about their disability. 40% disable person can get 50000 rupees deduction whereas 80% disable person can get the deduction of 100000. the doctor issue certificates for disability and one need not to enclose these certificates to any income tax returns etc. but it is advisable and must( from the income tax point of view) to get the certificates before claiming any kind of deduction under the section 80U of income tax act.
As per income tax rules in section 80U of income tax act, the doctor who issue a disability certificate should be a M.D (Doctor of Medicine) in the case of neurology cases and if the medical advisor is a private doctor whereas in the case of government medical chief medical or civil surgeon will issue these kind of certificates which are valid in case of income tax act under section 80U.
There are some prescribed forms for each disease and disability and one need to have the forms fill as well as get the certificates for claiming the deduction of income tax under section 80U.
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May 29, 2012

Finance act 2012 download

6:42 PM
Finance act 2012 download
Finance act 2012 is assented by President of India. In the finance act every section of income tax act and rules are defined. This includes rate of income tax in India, addition different section and amendment in some section of income tax, rate of tds in different cases for residents as well as non residents and rules for computing net agriculture income defined. So this is the link to download finance act 2012.

Director identification number DIN rules 2012

5:40 PM
Director identification number DIN rules 2012
Companies act made amendment in DIN forms as well as DIN number rules. There is the changes in DIN 1 and DIN 4 forms. There is also a notification issued in this regard. Notification no. 2 dated 28-05-2012 about the director identification number is as follows.

May 28, 2012

All about nomination and role of nominee in different investment

8:40 PM
All about nomination and role of nominee in different investment
We need to fill the form quite often either opening a bank account or investing elsewhere. There is a column in the forms which is about nomination. Nomination is to appoint a nominee who will receive the sum of investment in case of death of the investor. To appoint a nominee is the easiest process of transfer the amount from one name to another in case of any unwanted cause.

But most of us ignore this column while filing the forms. This is because of some think it’s not necessary to appoint a nominee for the investment. The investment may be big or small but money is money. In case of any mis happening it will be very difficult to cash the investment without appointing the nominee.
The second reason may be for not appointing the nominee is the lack of understanding about the nominee rules. Some thinks that nominee is the person who has the legal rights on the investment and in case of any occurrence; the nominee can take away his money.

The nomination process in generally applicable when investing somewhere or opening a bank account. Generally it applies when
-          Opening bank account.
-          Investing in shares
-          Insurance policies
-          Mutual funds
-          Fixed deposits
And may be many more.

The definition of nominee may be change investment to investment. Like there is different meaning of nominee in life insurance policy and mutual fund. So there is an explanation of nominee with different investment.

Investment in equities: - in equities the company act 1956 gives nominee a new definition. There was a case with Bombay High Court which ruled that in case of equities, the rights of nominee is more than the person who has the rights on property and investment according to will.

The court says that under the companies act, in case of death of a shareholder company knows only the nominee and not the person who has the rights in will. The nominee will have the rights on the equity investment in case of death of the shareholder.

So with this rule, a person must and carefully appoint the nominee on his investment in equities for the smooth transfer as well as to avoid any conflicts between nominee and bequests.

Mutual fund: - Appoint nominee is a must in case of investing in mutual fund. If one does not wish to appoint a nominee for his investment, he needs to sign a separate declaration form. This rule is effective from 01-04-2011. Nominee is a simple custodian in case of mutual fund.

Life insurance: - life insurance has the different story in nomination rules. In case of death of policy holder of life insurance, the legal heirs too can claim for the insurance amount. Supreme Court recently held that the nominee indicates only the hand to which the amount should be transferred. However, there is a different story that nominee has any beneficial right or not on the amount received. In case of life insurance policy, legal heirs have the right over nominee to receive the amount of insurance.

Thus it is advisable to appoint a nominee in life insurance policy who too has the right on your money for avoiding any conflict as well as smooth transfer of the money.

Co-operative societies: - in case of co-operative societies, appointing nominee is advisable for smooth transfer of the property. But in case of co-operative society one can appoint nominee to a person who has the blood relation with the owner.

One can change the nominee any time whenever he wants. Moreover he can appoint more than one nominee for his investment.  The right on the property is transferred in the name of nominee in case of owner death. 
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May 27, 2012

TDS claim may be accepted without verification if difference is less than 5000

5:51 PM
TDS claim may be accepted without verification if difference is less than 5000

Income tax department issued new rules about tax deduction at source. In these rules the main attraction is if the difference between TDS claim and matching tds in form 26AS is less than 5000 rupees, the TDS claim will be accepted without any verification. Income tax department issued instruction no. 4 dated 25-05-2012 about these new rules. Full instruction is as follows.

May 25, 2012

Standing counsels will represent income tax department in high court

11:23 PM
Standing counsels will represent income tax department in high court
Income tax department has appointed standing counsels to represent income tax department before high court and other judicial forums. Income tax department also fixed the fees for representing the department before the courts. Income tax department issued instruction no. 3/2012 dated 11-4-2012 about this issue. Full instruction and fees structure is as under.

Amount received for entering new partner is not taxable

6:22 PM
Amount received for entering new partner is not taxable
Where new partners were admitted to the firm and they introduced a handsome amount as their capital contribution which was withdrawn as drawings equally by the existing partners whose shares were reduced as a result of admission of new partners, the amount so received by existing partners is not taxable in the hands of the existing partners.

May 24, 2012

Interest on GPF and SDS has increased from 01-04-2012

2:46 PM
Interest on GPF and SDS has increased from 01-04-2012
Interest rates for GPF(General provident fund) and SDS(Special deposit scheme) has been increased to 8.8% from 8.6%. This rate is applicable from 01-04-2012. Finance Ministry issued a press release for this increase in interest rates. The press release is as under.

May 23, 2012

Companies need to give unpaid amount detail on website in 90 days after AGM

10:20 PM
Companies need to give unpaid amount detail on website in 90 days after AGM
Investor education and protection fund rules 2012 have a new rule which is that companies need to give unpaid amount details on company website in 90 days from the day of Annual general meeting(AGM). Investor education and protection fund issued a notification no. 352 dated 10-5-2012 about this new rule. Full notification is as under.

Government white paper on black money

10:16 PM
Government white paper on black money
Ministry of finance, Government of India has issued white paper on black money. There is a big issue of black money in India and government issued a white paper in which all the concepts of black money in foreign countries is added which the finance ministry knows. The white paper on black money is as under.

May 17, 2012

Interest deduction disallowance u/s 36(1)(iii) of income tax

9:08 AM
Interest deduction disallowance u/s 36(1)(iii) of income tax
IT : Disallowance u/s 36(1)(iii)(proviso) applicable to extension of existing business and not to setting up altogether different or new business

• Proviso to section 36(1)(iii) provides that no interest paid shall be allowed as deduction in respect of capital borrowed for acquisition of an asset for extension of existing business for any period beginning from the date on which the capital was borrowed for acquisition of the asset till the date on which the asset was first put to use.

May 16, 2012

Kisan credit card scheme

1:38 PM
Kisan credit card scheme
Reserve Bank of India has revised kisan credit card scheme. In this scheme RBI has made the procedure simple as the farmers can take its benefits. RBI has issued a circular no 77 dated 11-05-2012 about revised kisan credit card scheme which is as follows.

May 15, 2012

Charges on outstation cheque collection and speed clearing

2:55 PM
Charges on outstation cheque collection and speed clearing
Reserve Bank of India has review the charges on outstation cheque collection and speed clearing system. RBI has issued a circular no. 2080 dated 11-05-2012 about charges on cheque collection. Full circular is as under.

Custom imposes anti dumping duty on pvc flex film

2:36 PM
Custom imposes anti dumping duty on pvc flex film
Custom department has imposed anti dumping duty on pvc flex film. Anti dumping duty is a tool with the custom department by which the goods imported to India will cost more. Government feels that with importing of pvc flex film, the domestic industry is suffering. Custom department issued a notification no. 24 dated 14-05-2012 about imposing anti dumping duty on flex films. Full notification is as under.

May 12, 2012

Amendments in post office time deposit rules

3:46 PM
Amendments in post office time deposit rules
Central government has made some amendments in the post office time deposit. The amendments is about rate of interest government offering on time deposit in post office. Central government has declined the rate of interest  on time deposit in post office. Government also issued a notification no. 323 dated 25-04-2012. Full notification is as under.

May 11, 2012

Service tax clarification about rate of service tax

4:02 PM
Service tax clarification about rate of service tax
Service tax department has made a clarification about rate of service tax. The rate of service tax has raised 12% from 10% in the annual budget. But there was some confusion in the condition where the invoice is done before 1 April and payment is received after 1 April. So the service tax department has made a clarification about rate of service tax with a circular no. 158 dated 08-05-2012 which is as under.

Enforcement of intellectual rights on imported goods

4:01 PM
Enforcement of intellectual rights on imported goods
Custom department has issued a circular about enforcement of intellectual rights on imported goods and also made a clarification on the issue of parallel goods. Custom department has issued circular no. 13 dated 08-05-2012 about this issue. Full circular is as under.

May 9, 2012

No excise duty on articles of jewellery

2:14 PM
No excise duty on articles of jewellery
In the finance bill, Finance Minister has proposed withdraw of excise duty on jewellery. Excise department issued the notification no. 23 dated 8-5-2012 about the exemption of excise on articles of jewellery. This tax was levied on the annual budget and got a strong oppose by the jewellers. Full notification is as under.

May 8, 2012

Main points in finance bill withdraw of excise on jewellery etc

6:36 PM
Main points in finance bill withdraw of excise on jewellery etc
 Finance Minister Mr. Pranab Mukherjee presented finance bill 2012 and he made some amendments in the finance bill 2012 which are as follows.

Finance bill 2012 speech by Finance Minister

6:33 PM
Finance bill 2012 speech by Finance Minister
Finance Minister has presented the finance bill 2012. The full speech of finance minister Mr. Pranab Mukherjee is as under.

Import of goods with trademark logo or design

5:59 PM
Import of goods with trademark logo or design
Custom department redirects the import of goods with domestic trademark, logo or design on the goods. Custom department issued a circular no. 13 dated 08-05-2012 regarding that issue. Full circular is as under.

May 7, 2012

Some useful income tax points to remember finalizing income tax liability

6:50 PM
Some useful income tax points to remember finalizing income tax liability
Sometimes one get mistake in calculating the tax liability and ends up with mentally harassment as well as financial loss. This may be due to ignorance. One needs to know the income tax liability on different income and percentage of income tax payable to help him with no hassle what so ever. So these are the points a person must know for calculating the tax liability.

Custom imposes anti dumping duty on viscose filament yarn

6:45 PM
Custom imposes anti dumping duty on viscose filament yarn
Custom department has imposed anti dumping duty on viscose filament yarn. Anti dumping duty is imposed on import to save the local industry by putting additional duty on import to make it costlier. Custom department has issued a notification no. 23 dated 04-05-2012 about imposing anti dumping duty on viscose filament yarn. Full notification is as under.

May 5, 2012

Interest rates on NRE and FCNR account

5:19 PM
Interest rates on NRE and FCNR account
Reserve Bank of India has stated interest rates of non resident of India and FCNR account. RBI has issued direction no. 102 dated 04-05-2012 about the interest rates. Full direction is as under.

May 3, 2012

Custom classifies micro and mini SD cards

6:28 PM
Custom classifies micro and mini SD cards
Custom department classifies micro sd cards and mini sd cards. There are two different products which is used in cameras and mobile. These two products have different custom duty. Custom department gives classify with circular no. 12 dated 1-05-2012. Full circular is as under.

Custom imposes anti dumping duty on POY yarn

6:24 PM
Custom imposes anti dumping duty on POY yarn
Custom department imposes anti dumping duty on partially oriented yarn. POY yarn is the yarn of which socks are made. Custom department issued a notification no. 22/2012 dated 02-05-2012 about imposing the custom duty on POY yarn. Full notification is as under.

May 2, 2012

Custom rate list on import product wise

1:24 PM
Custom rate list on import product wise
Custom department amend some rates on different goods on export. The new rate list of custom duty is also published. Custom department issued a notification no. 28 dated 27-04-2012. The new rate list of custom duty is

No pre-payment penalty on home loan

11:56 AM
No pre-payment penalty on home loan
The information is given by Minister of state of finance in Lok Sabha that no pre-payment penalty will be levied on house loan. Lok Sabha press information bureau has issued a press release in this regard. The press release no. 15 dated 27-04-2012 is as follows.