Jan 31, 2013

Type of taxes which Americans pay

10:30 PM
Type of taxes which Americans pay

Taxation History: - Taxes was firstly introduced in Ancient Egypt as the records we have showed that the pharaoh would collect taxes from the people of Egypt for the kingdom. Taxation also described in the Bible “when the crop comes in, give a fifth of it to Pharaoh. The other four-fifths you may keep as seed for the fields and as food for yourselves and your households and your children."
What is tax? Tax is derived from the Latin word ‘taxare’ meaning ‘to estimate’

A fee charged by a government on a product, income, or activity. If tax is levied directly on personal or corporate.

Too Short But full defines taxes on India.
"The State taxes alcohol heavily"; "Clothing is not taxed in our state”
We generally bother about our Indian taxes but I found some article elsewhere about the American taxes, how much American pays the taxes. There are 12 ways that American would be taxed. Means 12 type of taxes American pay generally.
Tax is the universal and applies to almost every country but the type of tax and the rate structure differs to every country.
Tax is the main source of revenue of every country which she can distribute in different type of expenses like defense and public health.
There is also a saying that ‘nothing is certain but death and taxes’. So taxes are certain and there is the list of 12 taxes which American need to pay.
1) Income Taxes
Income tax is the main tax in the United States as most of the Americans divert to income tax while hearing the word tax. The reason is simple. American pays as much as 35% of their income as income tax which is very heavy. So income tax is the main tax in America.
2)Business Taxes

Also known as corporate taxes, these are direct taxes levied on the profits of businesses. Expenses that are deemed necessary to the business can usually be deducted to lower the amount of profits subject to taxation.
3) Payroll Taxes

Payroll taxes are the taxes which employees pay from their wages. The employer must cut the tax amount to their wages and pay to the government of America. Some payroll taxes include federal withholdings, disability insurance, Medicare, and other state withholdings.
4)Capital Gains Taxes
Capital gains are the income generated from sale of an assets or stock. Capital gains are generated from the sale price deducting to the purchase price of any stock or property. In the United States a tax is levied on all income generated from a taxpayer’s capital gains. Alternatively, if a taxpayer suffers from capital losses they can deduct the full loss amounts. The most common capital gains are created from the sale of stocks, bonds, and property.
5) Inheritance Taxes:-The inheritance tax is the tax which is also known as death tax. Any property transferred due to death of a taxpayer is inheritance tax. However, when they are left to a spouse or a charity, the tax usually does not apply.
6) Consumption tax:-Consumption taxes –consumption tax are also known as sales tax. Sales tax levied on the point of purchase to different goods. The rate of consumption tax are different to different goods and the location wise as due to large area the state and local authority charge sales tax at different level.
7) Property Taxes:-Property taxes are the taxes which are imposed on the assets and properties for the ownership. These taxes levied on different types of assets like real estate as well as some personal properties.
8) Excise Taxes:-Excise taxes are the taxes which are taxed on product cost. The same as in India excise taxes are on manufacturing units and the tax rate are high. Excise taxes are high on some products as well as some products are free from excise whereas some products have some exemption limit in America.

9) Gift Taxes:-A gift tax is the tax which is taxed of transfer the property from one hand to another. Gift is considered to some value products to be transferred with no cost or less than actual cost. There is gift tax in America but a few exemptions thereon.

10) Retirement Taxes:-Retirement tax is those which are levied on taxpayer retirement in America.
11) Tariffs:-In India it is also known as custom duty. Tariffs are the tax which is levied on import and export of the goods. In America the import duty is high whereas export duty is low to encourage domestic manufactures and to increase the prices of foreign goods.
12) Tolls:-Tolls are the fees or the tax which is charged when some vehicle cross specific boundary or some bridge which is very costly in view of manufacturing. Every time the vehicle crosses the toll it needs to pay a specific amount of money as the fees of toll or tax.

Jan 29, 2013

Excel auto fill PAN application form 49A

10:30 PM
Income tax department made some amendments in the new pan application form 49A and 49AA. The new PAN application must be filled with these forms. Form 49A is for residents of India whereas form 49AA is for residents outside India. The department made some changes in the form which is vital from the PAN application.

RBI reduced CRR by 25 basis points

9:37 PM
RBI reduced CRR by 25 basis points
Reserve bank of India has reduced cash reserve ration CRR by 25 basis points in third quarterly review of monetary policy 2012-13.

Ref: DBOD.No.Ret. BC.76/12.01.001/2012-13
January 29, 2013
All Scheduled Commercial Banks
& Local Area Banks
(Excluding Regional Rural Banks)
Dear Sir,
Maintenance of Cash Reserve Ratio (CRR)
Please refer to our Circular DBOD.No.Ret.BC.52/12.01.001/2012-13 dated October 30, 2012 on the captioned subject.

2. As set out in the Reserve Bank's Press Release 2012-2013/1267 dated  January 29, 2013, it has been decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Commercial Banks by 25 basis points from 4.25 per cent to 4.00 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning  February 09, 2013. The Local Area Banks shall also maintain CRR at 3.00 per cent of its net demand and time liabilities upto February 08, 2013 and 4.00 per cent of its net demand and time liabilities from the fortnight beginning from February 09, 2013.

3. The copies of the relative notifications DBOD.No.Ret.BC.75 /12.01.001/2012-13 and DBOD.No.Ret.BC.79 /12.01.001/2012-13 dated January 29, 2013 are enclosed.
4. Please acknowledge receipt.
Yours faithfully
(Murli Radhakrishnan)
Chief General Manager
Encls: as above

Jan 28, 2013

How to download form 16/16A from tdscpc.gov.in

4:24 PM
How to download form 16/16A from tdscpc.gov.in

What is a TDS Certificate?
TDS certificate is to be issued by each deductor who is deducting tax and furnished to the person from whose income / payment the tax has been deducted. The certificate should specify amount of tax deducted and rate at which it has been deducted.
TDS certificate is generated in TRACES on the basis of details provided by deductor in the quarterly TDS return. TDS certificate will be generated for deductee records with valid PAN (PAN present in the Income Tax Department database) in TDS statement
What are the types of TDS Certificates?
There are two types of TDS Certificates:
  • Salary Certificate (Form 16)
In case of Salaries, the certificate should be issued as Form 16 containing details of tax computation as well as tax deducted and paid. This refers to the details submitted in Form 24Q by deductor.
Part A of Form 16 which contains details of tax deducted and deposited by the employer can be downloaded from TRACES by deductor. A single Form 16 certificate will be issued for a given TAN, Financial year and PAN.
  • Non-Salary Certificate (Form 16A)
In case of Non-Salaries, the certificate should be issued as Form 16A containing details of tax deducted and paid. This refers to details submitted by deductor in Form 26Q and 27Q.
A single Form 16A certificate should be issued for a given Financial Year, Quarter, TAN and PAN. The Form 16A should contain details from both Form 26Q and 27Q for all sections (Nature of Payment).
How can I download Form 16 / 16A?
Deductors / collectors will have to register on TRACES to download Form 16 / 16A. After logging in to your account, click on 'Form 16' or 'Form 16A' under 'Downloads' menu. You can submit download request for maximum of 10 PANs at a time or do a bulk download for all PANs under the TAN for a particular Financial Year / Quarter.
Text file containing details of all requested PANs will be available in 'Requested Downloads' under 'Downloads' menu. User must pass the text file through TRACES PDF Generation Utility (which can be downloaded from TRACES) to create Form 16 / 16A PDFs for each PAN.
How can I download TRACES PDF Generation Utility?
TRACES PDF Generation Utility can be downloaded from TRACES in the following manner:
  • Without logging into TRACES
Click on 'Deductor' tab in the top navigation bar and click on 'Download PDF Generator' under Quick Links.
  • After logging into TRACES
Click on 'Requested Downloads' under 'Downloads' menu. Link to download the utility is provided on this screen.
The utility must be unzipped and installed on to your desktop. Clickhere to know more about the utility.
How do I use TRACES PDF Generation Utility to convert Form 16 / 16A text file into PDF?
After installing the utility on your desktop, double-click on the utility and open it. Select the text file for Form 16 / 16A downloaded from TRACES. Enter password for the text file and select the path where the output PDF files have to be saved.
If you want to digitally sign the Form 16 / 16A PDF files, select the digital signature and click on 'Proceed'. The utility will convert the text file into PDF files for each PAN and save it in the selected output folder.
Is it mandatory to digitally sign Form 16 / 16A?
No, it is not mandatory to select digital signature while converting the text file into PDF as Form 16 / 16A can also be signed manually after printing.
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Interest on saving account will be credited on monthly basis

3:42 PM
Reserve bank of India will ask for the banks to give interest to saving account holder on monthly basis. Now the interest amount is credited on quarterly basis. This will help the account holder to get the interest on time as well as easy for calculations.

RBI wants to maximize the number of saving account in the country and for so, it did many fruitful announcements for the account holder. These are two main announcements which increased the number of saving account in the country.

- Calculation of interest for saving account on daily basis
- Banks are free to fix rate of interest on saving account.

Now this third announcement which is likely to be done on Tuesday 29 January 2013 is also good for the saving account holders.

It helps to the economy too. In India there is a practice to keep the money in hand compare to cash at bank. Cash at bank helps the economy to grow as it is an investment whereas cash in hand is only a saving with which economy doesn’t get benefit. So RBI wants to move the money from the house to the banks.
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Jan 26, 2013

TDS section 194H doesn't require principal-agent relationship

2:24 PM
TDS section 194H doesn't require principal-agent relationship

TDS under section 194H attracted so long as payment is in the nature of brokerage or commission; Section 194H does not require that relationship between the payer and the payee be necessarily of a principal and agent
Depreciation is not an outgoing expenditure but a statutory deduction. Therefore, the provisions of section 40(a)(i) are not attracted on such deduction
In the instant case, the moot questions raised before the Tribunal were as follows:
1) Whether Sec. 194H can be invoked in a situation where principal-agent relationship amongst parties is missing?
2) If payment to NR is capitalized in books of accounts and depreciation thereon is being claimed by assessee, whether the depreciation can be disallowed by invoking Sec. 40(a)(ia)?
On first Issue, the Tribunal held in favour of revenue as under:
1) Section 194H talks about the payment to a recipient which is the income by way of commission or brokerage.
2) It does not require that the relationship between the payer and the payee should be of a principal and agent.
3) The Explanation to section 194 elaborates on the terms 'commission or brokerage' by including any payment received or receivable directly or indirectly by a person acting on behalf of another person.
4) Thus, it is clear that the provisions of section 194H do not require any formal contract of agency.
On Second issue, the Tribunal held in favour of assessee as under:
1) The deduction under section 32 is not in respect of the amount paid or payable which is subjected to TDS;
2) Depreciation is a statutory deduction on an asset which is not an outgoing expenditure. Therefore, the provisions of section 40(a)(i) are not attracted on such deduction;
3) Therefore, where payment, which has been made without deduction of TDS, has been capitalized as part of cost of asset, depreciation in respect of such payment can't be disallowed by invoking section 40(a)(i) - SKOL Breweries Ltd. v. ACIT [2013] 29 taxmann.com 111 (Mumbai - Trib.)

Jan 24, 2013

Banks will soon offer home loan for 30 years

11:00 PM

Reserve bank of India has suggested banks to offer the customers home loan for the repayment option for 30 years. This move is to save the customers from fluctuating rate of interest as well as save the burden of EMI, which will be low in 30 years period.

In this proposal there is a provision to reset the rate of interest in 7-10 years with the view of the base rate and not to violate the regulatory guidelines.

“The Indian financial system has G- secs (government securities) up to 30 years and 30- year bonds by banks. Banks could, therefore, make efforts to offer longer- tenor fixed rate loans, say up to 30 years, which would help reduce the EMIs of borrowers,” says the K K Vohra panel’s final report, presented today. It was appointed to study the feasibility of introducing more long- term fixed interest rate loan products.

The panel feels banks could have the option to fix a reasonable cap and floor ( 200 or 300 basis points) at the time of reset in relation to the interest rate originally charged to the borrower. The suggestion is made to protect both customers and banks from the risks arising out of adverse movements in interest rates.

Banks offered home loan at fixed rate up to 2000 but it lost the charm when floating rate of interest introduced as rate of interest fall heavily in 2000. So in reducing rate of interest on can easily calculate the emi as well as what he is paying means how much the interest amount and how much the principal.

Banks also seeking to offer fixed deposits tenure above 5 years with which the liquidity problem will also resolve.
Calculate fix interest rate vs. diminishing interest rate with the help of this excel based calculator.
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Jan 22, 2013

No STD and free roaming in India from 1 March

11:00 PM

Government is planning to make India roaming free from March 1 2013. If this happened as per promised, the telecom companies need to lower the STD charges to bring uniformity in the call prices. Generally STD charges are 50-60% higher than the local calls charges. If free roaming is on, the telecom companies need to forget about the STD call charges and there will be same charges for the local and STD call.

Roaming within country or domestic roaming is very less in most countries even in big countries like United States where single license is issued to the telecom companies. But in India, country divided into 22 telecom sectors of which company need to collect separate license for each circle. Roaming charges are imposed to the consumers if one goes out from his home circle to another circle.

Telecom companies oppose this move of free roaming across the countries. They feel that free roaming and no STD factor will hit their margins badly.

Companies need to cut down the STD calls because if the free roaming and STD calls are simultaneously implemented, the consumer may purchase an other circle SIM and use for STD calls which is roam free and also use for incoming which is free as free roaming. So telecom companies need to lower the STD calls.
Companies also suggest that it can compromise the security as some can purchase the SIMs from the palaces for their known area and can use it anywhere in the country.

Companies earns around 9-10% of their revenue from the roaming charges which is very vital for them but TRAI is looking for the pan-India rule in which no roaming charges will be implement across the country.

So with these two good things to the consumers, I think companies have not any option left to increase the local tariff charges.
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Direct tax benefits on export of computer software

3:49 PM
Direct tax benefits on export of computer software
Income tax department issued a circular no. 1 dated 17 January 2013 about direct tax benefits on export of computer softwares and issue relating to this. Full circular is as under.

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 17th January 2013

Circular No. 01/2013

Subject: Issues relating to export of computer software-Direct tax benefitsClarification reg.

The Indian Software Industry has been the beneficiary of direct tax incentives under the provisions like Sections 10A, 10AA & 10B of the Income -tax Act, 1961 in respect of their profits derived from the export of computer software. These provisions prescribe incentives to “units” or “undertakings”, established under different schemes, which are/were deriving profits from export of computer software subject to fulfilling the prescribed conditions.

2. It has been represented by the software companies that several issues arising from the above mentioned provisions are  giving rise to  disputes between them and the Income-tax authorities leading to denial of tax benefits and consequent litigation and, therefore, require clarification. Various issues highlighted by the Software Industry have been examined by the Board and the following clarifications are hereby issued -



(a) CBDT had earlier issued a Circular (Circular No. 694 dated 23.11.1994) which provided that a unit should not be denied tax-holiday under sections 10A or 10B on the ground that the computer software  was prepared ‘on-site’, as long as it was a product of the unit, i.e., it is produced by the unit. However, certain doubts appear to have arisen following the insertion of Explanation 3 to sections 10A and 10B  (vide Finance Act, 2001) and Explanation 2 to  section  10AA (vide Special Economic Zones Act, 2005) providing  that  “the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India”, and  aclarification has been sought on the impact of the Explanation on the tax-benefits  as compared to the situation that existed prior to the amendments.

The matter has been examined. In view of the position of law as it stands now, it is clarified that  the software  developed abroad  at a client’s place  would be eligible for benefits  under  the  respective provisions, because these would amount to ‘deemed export’ and tax benefits would not be denied merely on this ground.  However, since the benefits under these provisions can be availed of only by the units or undertakings set up under specified schemes in India, it is necessary that there must  exist a direct  and intimate  nexus or connection of  development of software done abroad with the eligible units set up in India and such development of software should be pursuant to a contract between the client and the eligible unit. To this extent, Circular No. 694 dated 23.11.1994 stands further clarified.

(b) It has also been brought to notice that it is a common practice in the software industry to depute  Technical Manpower abroad (at the client’s place) for software development  activities (like upgradation, testing, maintenance, modification, trouble-shooting etc.), which often require frequent interaction with the clients located outside India. Due to the peculiar nature of software development work, it  has been suggested that  such deputation of Technical Manpower abroad should not be considered detrimental to the benefits of the exemption under sections 10A, 10AA and 10B merely because such activities are rendered outside the eligible units /undertakings.

The matter has been examined. Explanation 3 to sections 10A and 10B and Explanation 2 to section 10AA clearly declare that profits and gains derived from ‘services for development of software’ outside India would also be deemed as profits derived from export. It is therefore clarified that profits earned as a result 
of deployment of Technical Manpower at the client’s place abroad specifically for software development work pursuant to a contract between the client and the eligible unit should not be denied benefits under sections 10A, 10AA and 10B provided such deputation of manpower is for the development of such software and all the prescribed conditions are fulfilled.


As per the practice prevalent in the software development industry, generally two types of agreement are entered into between the Indian software developer and the foreign client. Master Services Agreement (MSA) is an initial  general agreement between a foreign client and the Indian software developer setting out 
the broad and general terms and conditions of business under the umbrella of which specific and individual Statement of Works (SOW) are  formed. These SOWs, in fact, enumerate the specific scope and nature of the particular task or project that has to be rendered by a particular unit under the overall ambit of the 
MSA.  Clarification has been sought whether more than  one  SOW can be executed under the ambit of a particular MSA and whether SOW should be given precedence over MSA.

The matter has been examined. It is clarified that the tax benefits under sections 10A, 10AA and 10B would not be denied merely on the ground that a separate and specific MSA does not exist for each SOW.  The SOW would normally prevail over the MSA in determining the eligibility for tax benefits unless the 
Assessing Officer is able to establish  that there  has been splitting up or reconstruction of an existing business or non-fulfilment of any other prescribed condition.

The definition of “computer software” stipulated under Explanation 2 to sections 10A and 10B includes “any customized electronic data or any product or service of similar nature, as may be notified by the Board….”. The CBDT had already issued Notification No. 890(E) dated 26.09.2000 specifying such items.  The notification includes Engineering and  Design but does not specifically include Research and Development activities related to software development in respect of which clarification has been sought.

After examining the matter, it is clarified  that the services covered by the aforesaid Notification, in particular, the ‘Engineering and Design’ do have the inbuilt elements of Research and Development. However, for the sake of clarity, it is reiterated  that any Research and Development  activity embedded in the ‘Engineering and Design’, would also be covered under the said Notification for the purpose of Explanation 2 to the above provisions.

The vital factor in determining the above issue would be facts such as how a slump-sale is made and what is its nature. It will also be important to ensure that the slump sale would not result into any splitting or reconstruction of existing business. These are factual issues requiring verification of facts.  It is, however, clarified that on the sole ground of change in ownership of an undertaking, the claim of exemption cannot be denied to an otherwise eligible undertaking and the tax holiday can be availed of for the unexpired period at the rates as applicablefor the remaining years, subject to fulfilment of prescribed conditions. 


Since there is no requirement in law to maintain separate books of account, the same cannot be insisted upon. However, since the deductions under these sections are available only to the eligible units, the Assessing Officer may call for such details or information  pertaining to different units to verify the  claimand quantum of exemption, if so required.


This issue relates to cases where an eligible SEZ unit is shifted from one SEZ to another SEZ on account of commercial exigencies. This shifting is permissible under  Instruction No.59  (F.No.C-4/2/2010-SEZ)  issued by Department of Commerce (SEZ Division), provided approval from the Board of Approvals 
(BOA) has been obtained. Doubts have been raised whether such shifting of an eligible unit would deprive the unit/undertaking of tax benefits, provided there is no splitting or reconstruction of an existing business.

The matter has been examined and it is clarified that the tax holiday should not be denied merely on the ground of  physical relocation of an eligible SEZ unit from one SEZ to another in accordance with Instruction No. 59 of Department of Commerce (referred to above) and if all the prescribed conditions are satisfied 
under the Income-tax Act, 1961. It is further clarified that the unit so relocatedwill be eligible to  avail of the tax benefit for the unexpired period at the rates applicable to such years.


Whether setting up of new unit/undertaking in a location (covered by sections10A, 10AA or 10B), where an eligible unit is already existing, would amount to expansion of such already existing unit is a matter of fact requiring examination and verification. However, it is clarified that setting up of such a fresh unit in 
itself would not make the unit ineligible for tax benefits, as long as the unit is setup  after obtaining necessary
approvals from the competent authorities; has not been formed by splitting or reconstruction of an existing business; and fulfils all other conditions prescribed in the relevant provisions of law.

3.     The above may be brought to the notice of all concerned.
Under Secretary (ITA.I)
Telefax: 23093070

Centralised processing of TDS scheme 2013

2:59 PM
Centralised processing of TDS scheme 2013
Income tax department issued a notification about centralised processing of statements of tax deduction at source scheme 2013. In this notification all the aspects of TDS centralised processing are included. Notification no. 3 dated 15 January 2013 is as under.

New Delhi, the 15th January 2013

S.O. 169 (E).— In exercise of the powers conferred by sub-section (2) of section 200A of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following scheme for centralised processing of statements of tax deducted at source, namely:—

1.  Short title and commencement.— (1) This scheme may be called the Centralised Processing of Statements of Tax Deducted at Source Scheme, 2013.

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

2. Definitions.— (1) In this scheme, unless the context otherwise requires,—
(a) “Act” means the Income -tax Act, 1961 (43 of 1961);

(b)    “Assessing Officer” means the Assessing Officer who is  ordered or directed under section 120 of the Act to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing 
Officer under  Chapter XVII of the Act;

(c) “authorised agency” means the person  authorised by the Director General to receive the statement of tax deducted at source or correction statement of tax deducted at source;

(d) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);

(e)  “Cell” means the Centralised Processing Cell having jurisdiction over such statements of tax deducted at source as may be specified by the Board;

(f) “Commissioner” means the Commissioner of Income-tax in charge of the Centralised Processing Cell;

(g)      “correction statement of tax deducted at source” means the statement furnished for rectifying any mistake or  to add, delete or update the information   furnished  in the statement of tax deducted at source 
furnished under sub-section (3) of section 200 of the Act;(h)  “deductor” means a person deducting tax in accordance with the provisions of Chapter XVII of the Act;

(i)  “Director General” means the Director General of Income-tax (Systems) appointed as such under sub-section(1) of section117 of the Act;

(j) “portal” means the web portal of the authorised agency or the web portal  of the Cell, as the case may be;

(k)     “statement of tax deducted at source” means statement of tax deducted at source furnished under sub-section (3) of section 200 of the Act.

(2) The words and expressions used herein but not defined and defined in the Act shall have the meaning respectively assigned to them in the Act.

3. Centralised Processing Cell.— The Board  may  set up  as many Centralised Processing Cells as it may deem necessary and specify their respective jurisdictions. 

4. Furnishing of correction statement of tax deducted at source.— (1) A deductor shall furnish the correction statement  of tax deducted at source in the  form specified by the Director General—

(a) at the authorised agency through electronic mode; or
(b) online through the  portal.

(2)  The correction statement referred to in  sub-paragraph (1) shall be furnished under digital signature or verified through a process in accordance with the procedure, formats, and standards specified by the Director General.

5. Processing of statements.— (1) The  Cell shall process   the  statement  of tax deducted at source furnished by a deductor in the manner specified under subsection (1) of  section 200A of the Act after taking into account the information contained in the correction statement of tax deducted at source, if any,furnished by the deductor before the date of processing.

(2) The Commissioner may—
(a) adopt appropriate procedure for processing of the statement of taxdeducted at source; or

(b) decide the order of priority for processing of the statement of tax deducted at source based on administrative requirements.

6. Rectification of mistake.— (1) An Income-tax authority of the Cell may, with a view to rectifying any mistake apparent from the record under section 154 of the Act,  on its  own motion or on receiving an application from the  deductor,amend any order or intimation passed or sent by it under the Act.

(2) An application for rectification shall be furnished in the form  and manner specified by the Director General.

(3) Where a rectification has the effect of reducing the refund or increasing the liability of the deductor, an intimation to this effect shall be sent to the deductor electronically by the Cell and the reply of the deductor shall be furnished in the form and manner specified by the Director General.

(4) Where an amendment has the effect of reducing a refund already made or increasing the liability of the deductor, the order under section 154 of the Act passed by an Income-tax authority of the Cell shall be deemed to be a notice of demand under section 156 of the Act.
7. Adjustment against outstanding tax demand.— Where a refund arises from the processing of a statement under this scheme, the provisions of section 245 of the Act shall, so far as may be, apply.

8. Appeal.— (1) Where a statement of tax deducted at source is processed at the Cell, the appeal
proceedings relating to the processing of the statement shall lie with the Commissioner of Income-tax (Appeals) having jurisdiction over the Assessing Officer who has jurisdiction over the deductor and any reference to Commissioner of Income-tax (Appeals) in any communication from the Cell shall 
mean such jurisdictional Commissioner of Income-tax (Appeals).

(2) The Assessing Officer who has jurisdiction over the deductor shall submit the remand report and any other report to be furnished before the Commissioner of Income-tax (Appeals) and an order, if any, giving effect to appellate order shall be passed by such Assessing Officer.

9. No personal appearance at the Cell.— (1) No person shall be required to appear personally or through  authorised representative before the authorities at the Cell in connection with any proceedings.

(2) The Cell may call for such clarification, evidence or document as may be required for the  purposes of the processing of statement of tax deducted at source or for the purposes of the rectification of any order or intimation passed or sent by the Cell under the provisions of the Act. (3) The deductor shall furnish the reply to any communication  under subparagraph (2) in such format as may be specified by the Director General.

10. Service of notice or communication.—(1) The service  of a notice or order or intimation or any other communication by the Cell may be made by delivering or transmitting a copy thereof to the deductor,—
(a) by electronic mail; or
(b)by placing such copy in the registered electronic account of the deductor on the portal of the Cell; or
(c) by any  mode mentioned in sub-section (1) of section 282 of the Act.

(2) The date of posting of  any communication under sub-paragraph (1) in the electronic mail or electronic account of the deductor in the portal of the Cell shall be deemed to be the date of service of such communication.

(3) The intimation, orders and notices shall be computer generated and need not carry physical signature of the person issuing it.

11. Power to specify procedure and processes.— The Director General may specify procedures and processes, from time to time, for effective functioning of the Cell in an automated and mechanised  environment, including specifying the procedure, formats, standards and  processes in respect of the following matters, namely:—

(a) form of correction statement of tax deducted at source;
(b) the manner of verification of correction statement of tax deducted at source;
(c) receipt of correction statement of tax deducted at source;
(d) form of rectification application;
(e) the manner of verification of rectification application;
(f) receipt and processing of rectification applications in the Cell;
(g) the mode and format of the acknowledgment to be issued by the Cell for the receipt of any document;
(h) the mode of authentication of any document or information submitted to the Cell, including authentication by digital signature or electronic signature;
(i) validation of any software used for electronic filing of correction statement of tax deducted at source or rectification application;
(j) provision of web portal facility including login facility, tracking status ofcorrection statement of tax deducted at source or statement of tax deducted at source, display of relevant details of tax deduction or refunds to the taxpayer or deductor, as the case  may be, and facility of download of relevant information;

(k) call centre to answer queries and provide taxpayer services, including outbound calls to a deductor requesting for clarification to facilitate the processing of the statement of tax deducted at source filed;

(l) provision of grievance redressal mechanism in the Cell;
(m)managing tax administration functions such as receipt, scanning, data entry, processing, storage and retrieval of statement of tax deducted at source and documents in a centralised manner or receipt of paper documents through authorised intermediaries.

[Notification No.  03 /2013        [F.No. 142/39/2012-SO (TPL)]
Director (TPL-III)

Jan 20, 2013

PPF NSC and Small Saving Scheme Cap Increase for Small Investor-Panel Report

11:30 PM
A committee set up for looking small scale investor fund presents it's report to the finance minister. The report recommends to increase the cap of Public Provident Fund, increase the rate of interest of post office scheme as well as decrease the maturity period,increase the rate of interest on small saving scheme and discoutinue of KVP(Kisan vikas patra). Full report is as under.

Jan 12, 2013

Excel based salary calculator , TDS on salary, Form, 12 BA and form 16 utility

11:02 PM
TDS is deducted on the salary if the salary is more than the exemption limit. The employer deducts TDS on salary from the employee salary and deposits in the income tax department account. But it is not as easy as it looks. The reasons behind it that salary includes a lot of allowances and deductions and savings with the salary which are exempted from income tax.

One of my friend Mr. Pranab Banerjee has developed an excel based utility which calculates salary amount, TDS on salary, Form 12 BA and form 16 of the employee.  It can create 50 Form 16 at one time. The features of this excel based salary and TDS calculator is as follows.

- This is salary + TDS on salary + form 12BA and form 16 utility.
- Complete excel based calculator.
- Can create 50 forms 16 at one time.
- For financial year 2012-13 and the analysis year 2013-14
- Colorful presentation.
-       It has the complete instruction with the tax slabs, section 10 exemption, new exemption to income tax on salary etc.
Download calculator
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Jan 11, 2013

Now portability is LPG Gas cylinders

11:00 PM

After seeing the portability in mobile, Government of India announced a scheme which offers portability in LPG gas cylinders.

LPG GAS cylinder portability is in the initial stage which is launched on Friday 11 JANUARY 2013 in the beautiful city of Chandigarh only by the Natural gas minister Mr. Veerappa Moily.

There are three companies in India which offer LPG gas connection which are.

The government has targeted to launch the Gas cylinder portability in 25 districts in 2013.

This portability means if one is not satisfied by the gas distributor, he can change the gas distributor of the same company at other palace.

This is the must thing in the matter of gas distributor as many gas distributors’ plays with the time of the consumer and often busy in black marketing.

In black market, the LPG gas cylinder prices rise from 600-700 Rs. to 1100-1200 rs. After government launch of supply 6 subsidy gas cylinders only in a month.

In the second phase of Gas portability the government will offer the choice in which one can change Gas Company with the LPG gas cylinders if one is not satisfied with the services company is offering.

This will definitely increases the competition among gas distributors as well as company to provide good service to the consumers.

Government also launched Lakshya project in which the consumer can book the gas cylinders online, lodge a complaint against gas distributor and rate distributor.
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Jan 10, 2013

Time limit extended for filing ITR-V for AY 2010-11, AY 2011-12 and AY 2012-13

2:07 PM
Time limit extended for filing ITR-V for AY 2010-11, AY 2011-12 and AY 2012-13
Income tax department has extended time limit for filing ITR-V form for the analysis year 2010-11, analysis year 2011-12 and the analysis year 2012-13. Income tax department has issued a press release dated 4 January 2013 regarding extended time limit for ITR-V. Full press release is as under.

The Director General of Income Tax (System) as per powers assigned to it under clause (ii) of Para 14 read with clause (7) of Para 4 of the ‘Centralized Processing of Returns Scheme, 2011’, issued as per C B D T Notification No. SO 16(E) dated 4.1.2012, has decided to extend the time limit for filing ITR-V forms relating to Income Tax Returns filed electronically (without digital signature Certificate) for A.Y. 2010-11 [filed during F.Y.2011-12] and for ITRs of A.Y. 2011-12 [filed on or after 1.4.2011] till 28th February, 2013.  In respect of returns filed for A.Y. 2012-13 for which  ITR-V forms are yet to be received at CPC and time of 120 days has also elapsed, time limit for filing of ITR-V is extended upto 31st March, 2013 or within a period of 120 days from the date of uploading of the electronic return data, whichever is later

2.  The Relaxation has been made since there are still a large number of electronic returns relating to A.Y. 2010-11, 2011-12 and 2012-13 for which the ITR-V forms have not yet been received at the Centralized Processing Centre (CPC), Bengaluru.  These taxpayers are being given an opportunity to send ITR-V forms to the CPC, Bengaluru by the date mentioned in para 1 above. 

3. Taxpayers can also verify their status of receipt of ITR-V at e-filing website
https://incometaxindiaefiling.gov.in. They can also download the ITR-V from the same website from sub-menu  My Return under main-menu of  My account after login into above mentioned website. 

4. The ITR-V forms should be sent by ordinary post or speed post addressed to CPC, Post Bag No.1, Electronic City Post Office, Bengaluru-560100.
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Ganesh housing corporation ltd. approved for industrial park u/s 80IA

1:54 PM
Ganesh housing corporation ltd. approved for industrial park u/s 80IA
Income tax department has issued a notification no. 1/2013 dated 8 January 2013 about approval for industrial park under section 80 IA of income tax act. M/s Ganesh Housing Corporation Ltd. has been approved for industrial park under section 80IA of income tax act. Full notification is as under.

NOTIFICATION NO. 1/2013 [F.NO. 178/02/2008-ITA-I], DATED 8-1-2013

Whereas the Central Government in exercise of the powers conferred by clause (iii) of sub-section (4) of section 80-IA of the Income-tax Act, 1961 (43 of 1961) [hereinafter referred to as the said Act), has framed and notified a scheme for industrial park, by the notifications of the Government of India in the Ministry of Commerce and Industry (Department of Industrial Policy and Promotion) vide number S.O. 193(E), dated the 30th March, 1999 for the period beginning on the 1st day of April, 1997 and ending on the 31st day of March, 2002 and vide number S.0.354(E), dated the 31st day of March, 2006;

And whereas M/s. Ganesh Housing Corporation Ltd. having its registered office at 1st Floor, "Samudra", Near Klassic Gold Hotel, C.G. Road, Ellisbridge, Ahmedabad-380006, is developing an Industrial Park at International Pharma and Biotech Park, Matoda-Sari, Ahmedabad, Gujarat.

And whereas the Central Government has approved the said Industrial Park vide Ministry of Commerce and Industry letter No. 15/21/04-IP&ID, dated 5-11-2004 subject to the terms and conditions mentioned therein;

And whereas the Hon'ble Gujarat High Court in its order dated 10.8.2011 in Special Civil Application 15962 of 2012 has directed the Central Board of Direct Taxes and the Ministry of Commerce to take consequential steps to ensure that necessary notification of the aforementioned industrial park is issued for the benefits under section 80-IA in terms of Rule 18C(4) of the Income Tax Rules, 1962.

Now, therefore, in exercise of the powers conferred by clause (iii) of sub-section (4) of section 80-IA of the said Act, the Central Government hereby notifies the undertaking, being developed and being maintained and operated by M/s. Ganesh Housing Corporation Ltd., as an industrial park for the purposes of the said clause (iii) subject to the terms and conditions mentioned in the annexure of the notification.

The terms and conditions on which the approval of the Government of India has been accorded for setting up of an industrial park by M/s. Ganesh Housing Corporation Ltd..
1.            (i) Name of the Industrial Undertaking   :               Ganesh Housing Corporation Ltd., Ahmedabad.
                (ii) Proposed location :   International Pharma and Biotech Park, Matoda-Sari, Ahmedabad
                (iii) Area of Industrial Park :         3,08,937 sq meters
                (iv) Proposed activities 
Nature of Industrial  activity with NIC code
                 NIC Code                                                                   Description
S. No.    Section Division                Group   Class     
A             3              30           304         -              Manufacture of drugs, medicines and allied products
                (v) Percentage of allocable area earmarked for Industrial use :   82%
                (vi) Percentage of allocable area earmarked for commercial use :              2%
                (vii) Minimum number of industrial units :            30 Units
                (viii) Total investments proposed :           Rs. 13,71,63,834/-
                (ix) Investment on built up space for Industrial use (Amount in Rupees) :              Nil
                (x) Investment on Infrastructure Development including investment on built up space for industrial use :             Rs. 8,99,02,448/-
                (xi) Expected date of commencement of the Industrial Park :     January 15, 2006

2.            The minimum investment on infrastructure development in an Industrial Park shall not be less than 50% of the total project cost. In the case of an Industrial Park which provides built-up space for industrial use, the minimum expenditure on infrastructure development including cost of construction of industrial space, shall not be less than 60% of the total project cost.

3.            Infrastructure development shall include, roads (including approach roads), water supply and sewerage, common effluent treatment facility, telecom network, generation and distribution of power, air-conditioning and such other facilities as are for common use for industrial activity which are identifiable and are provided on commercial terms.

4.            No single unit referred to in column (2) of the Table given in sub-paragraph (b) of paragraph 6 of S.O. 354(E), dated the 1st April, 2002, shall occupy more than fifty per cent of the allocable industrial area of an Industrial Park. For this purpose a unit means any separate and distinct entity for the purpose of one and more state or Central tax laws.

5.            Necessary approvals, including that for foreign direct investment or non-resident Indian investment by the Foreign Investment Promotion Board or Reserve Bank of India or any authority specified under any law for the time being in force, shall be taken separately as per the policy and procedures in force.

6.            The tax benefits under the Act can be availed of only after the number of units indicated in Para 1(vii) of this Notification, are located in the Industrial Park.

7.            M/s. Ganesh Housing Corporation Ltd., Ahmedabad shall continue to operate the Industrial Park during the period in which the benefits under clause (iii) of sub-section (4) of section 80-IA of the Income-tax Act, 1961 are to be availed.

8.            In case the Industrial Park did not commence by 31.3.2006, fresh approval will be required under the Industrial Park Scheme, 2008 subject to the applicability under that Scheme for availing benefits under sub-section 4(iii) of section 80-IA of the Income-tax Act, 1961.

9.            The approval will be invalid and M/s. Ganesh Housing Corporation Ltd., Ahmedabad shall be solely responsible for any repercussions of such invalidity, if
(i) the application on the basis of which the approval is accorded by the Central Government contains wrong information/misinformation or some material information has not been provided in it.

(ii) it is for the location of the industrial park for which approval has already been accorded in the name of another undertaking.

10.          In case M/s. Ganesh Housing Corporation Ltd., Ahmedabad, transfers the operation and maintenance of the industrial park (i.e., transferor undertaking) to another undertaking (i.e., the transferee undertaking), the transferor and transferee shall jointly intimate to the Entrepreneurial Assistance Unit of the Secretariat for Industrial Assistance, Department of Industrial Policy and Promotion, Udyog Bhawan, New Delhi-11 along with a copy of the agreement executed between the transferor and transferee undertaking for the aforesaid transfer.

11.          The conditions mentioned in this notification as well as those included in the Industrial Park Scheme, 2002 should be adhered to during the period for which benefits under this scheme are to be availed. The Central Government may withdraw the above approval in case M/s. Ganesh Housing Corporation Ltd., Ahmedabad fails to comply with any of the conditions.

12.          Any amendment of the project plan without the approval of the Central Government or detection in future, or failure on the part of the applicant to disclose any material fact, will invalidate the approval of the industrial park.

Jan 8, 2013

Loan EMI and amortisation calander

11:00 PM
This is the world of EMI(Equal monthly installments). Almost everyone need to pay the EMI for the loan taken for anything. The market is also changed after the launching of EMI as public have more real money in hands now to purchase goodThis i good for market, financial institutes as well as for public too as they easily can afford the goods now on EMI. 

But one should remember paying EMI at time as well as have the loan amortisation schedule to know how much one i paying the interest amount and how much the principal. EMI consists of both the interest and principal and one must know what he is paying.

This is an excel based loan EMI and amortisation schedule for the loan. One need to put these figures in the calculator and all things will be automatically cal;culated. The required fields are.

Loan amount
Rate of interest
Date of Loan
So this calculator will be very beneficial to whom has taken the loan.

Download calculator
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