New simple pension form for retired govt employees

New simple pension form for retired govt employees

Government on 21 February introduced a new pension form due to the retired employees which simplifies the process of sanctioning pension and getting rid of the requirement with regard to submission of affidavits.

The new 'Form 5' has become brought for the advantage of pensioners and it will eventually record all information by self-attestation by your specific concerned, said Sanjay Kothari, Assistant, Department of Management Reforms, Public Issues and Pension.

"While changes have been made in numerous (other) forms, special change has been made only about Form-5, " he said.

The information to become filled in through retiring government employees is fixed to their name, address and bank-account details, Kothari explained.

"In addition, employees' mobile variety and e-mail id if available can be being collected for simplicity of correspondence in upcoming. These steps will go a long way toward reducing inconvenience with the individual and also making the practice more transparent, inch he added.

The actual Ministry of Personnel also launched half a dozen documentary films about good governance attempts here today.

The documentary films provide successful initiatives to tackle the situation of adverse sexual intercourse ratio by district administration of Nawashahr, Punjab; motivation of strengthening CSR shelling out in Raigarh district and educational attempts in Dantewada spot, Chhattisgarh, a statement issued today through Ministry of Personnel said.

The short videos on saving open space and downtown lakes (SOUL) as well as cultural rejuvenation with the twin city connected with Hubali-Dharwad, Karnataka and fineness in rural operations and development inside the challenging physical environment with the Sikkim Himalaya as well as Kaushalya Vardhan Kendra (skill development) project with the Directorate of Career & Training, Gujarat were being also launched, this said.

Based about stakeholders' consultation, films have been made in several durations i. age. in 14 units, three-and-a-half minute as well as 30 second.

The 14-minute format is perfect for class room review and discussion inside the Central Training Institutes (CTI) as well as Administrative Training Institutes (ATI); the 3½ minute film is meant for larger conventions where senior amount officers participate, or if the audience is already mindful of the broad contours with the schemes or to the meetings with non-officials, this statement said.
Important points of filing TDS corrective statements

Important points of filing TDS corrective statements

The Centralized Processing Cell (TDS), in its constant endeavour to keep our stakeholders informed and educated, feels glad to remind important facts related to submitting Correction Statements. Following are some useful information to adhere before submitting Corrections, with special reference to C3 & C9: 
  
  What are C3 & C9 Corrections?     

· C3 Correction involves Updation  or Addition of Deductee details in the TDS statement.  The facility to delete Deductee records has now been discontinued for the purpose of correct reporting and is no longer permissible in the TDS statements. Accordingly, the delete option available under "Updation mode for Deductee" has been removed from RPU 3.8. 

· Revision of TDS Statement by way of Adding a new Challan and underlying Deductees is referred to as C9 Correction. 

Important points to adhere while submitting Corrections:   

· Correct and Complete Reporting: It is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the TDS statement. Please ensure that records are corrected for all deductees reported in the corrections to avoid multiple submissions. 

· Addition of new deductee rows and thereby, challans is not encouraged by CPC (TDS), except for inadvertent errors. Please ensure that complete data is reported in the first instance, while quarterly TDS Statement is submitted. 

· Validate PAN and name of fresh deductees from TRACES before quoting it in correction statement. Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN 

· TDS statement cannot be filed without quoting any valid challan and deductee row 

· Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer 

· Download the Justification Report to know the details of TDS defaults, if any, on processing of TDS statements and submit corrections accordingly 

· File correction statements promptly in case of incomplete and incorrect reporting. Please use the new version 3.8 of the Return Preparation Utility (RPU) and version 4.1 & 2.137 of the File Validation Utility (FVU) released by NSDL. 

Please ensure  that data for all deductees reported in TDS Statements are duly corrected which will help the deductees in claiming correct TDS Credits, besides generating correct TDS Certificates. 

For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344. 

CPC (TDS) is committed to provide best possible services to you. 
Govt is planing to increase interest rate on EPF

Govt is planing to increase interest rate on EPF

A proposal to revise the interest rate of Employees Provident Fund (EPF) by means of 0. 25 % is under the consideration on the government.

Replying to a question in Rajya Sabha, Minister connected with State for Work and Employment Kodikunnil Suresh mentioned the Central Board of Trustees (CBT) Employees' Provident Fund (EPF), at their meeting, has advised 8. 75 % interest rate with regard to 2013-14, which is definitely an increase of 0. 25 % over the past year of 2012-13.

Proclaiming that employees' representatives of CBT, EPF are actually demanding an increase inside interest rate in EPF, he mentioned, however, the monthly interest depends upon the earning around the investment of this fund.

On the basis of the provide earning, CBT, EPF has proposed an interest of 8. 75 %, he added.
Normal dress is not uniform and not eligible for exemption u/s 10(14)(i)

Normal dress is not uniform and not eligible for exemption u/s 10(14)(i)

IT : Normal dress worn by employees in office is not 'uniform' for the purposes of exemption uniform allowance u/s 10(14)(i)

As per dictionary meaning or even as otherwise understood in common parlance, "uniform" is an identifying outfit or style of dress which is identical or consistent without variations in details. Examples are uniform of police personnel, armed forces, canteen staff etc. Uniform may change as per rank and designation of group of employees concerned. If appellant's interpretation of 'uniform'(that it's a standard style of dress and not uniformity of dressing style) were to be accepted, in every office, any dress worn by the employees' would qualify as 'uniform'. The prescribed uniform was done away in ONGC (appellant) way back in 1995. No 'uniform' was prescribed in ONGC during the period under consideration. Therefore, it cannot be said that the allowance was towards purchase or maintenance of uniform. Since the payment in question was not towards purchase or maintenance of "uniform', it cannot be exempted from tax in the hands of employees under Rule 2BB(l)(f)read with section10(14)(i) and appellant (ONGC) was liable to deduct TDS from uniform allowance.
Amount in PPF account is not available for recovery against income tax dues

Amount in PPF account is not available for recovery against income tax dues

IT : PPF account is immune from attachment and sale for recovery of income-tax dues

• Rule 10 of the Second Schedule to the Income-Tax Act,1961 provides that All such property as is by the Code of Civil Procedure, 1908, exempt from attachment and sale in execution of a decree of a civil court shall be exempt from attachment and sale under this Schedule. Proviso to section 60(1) of Code of Civil Procedure contains list of properties which shall not be liable to attachment or sale which inter alia covers in clause (ka) "(ka) all deposits and other sums in or derived from any fund to which the Public Provident Fund Act, 1968 (23 of 1968), for the time being applies, in so far as they are declared by the said Act as not to be liable to attachment."

• Therefore, any amount lying in the PPF account of a subscriber is immune from attachment and sale for recovery of the income tax dues. As long as an amount remains invested in a PPF account of an individual, the same would be immune from attachment from recovery of the tax dues. The situation may change as and when such amount is withdrawn and paid over to the subscriber. CBDT circular dated 7-11-1990 clarifying that "Section 9 of the Public Provident Fund applies only to attachment under a decree/order of a Court of Law and not to attachment by the Income Tax Authorities" is contrary to the above statutory provisions.
Income tax send 23 lakh letters for non filing return

Income tax send 23 lakh letters for non filing return

Some sort of last-ditch effort to satisfy revenue targets, the Income tax Department will always be sending out text letters to 23 lakh assessees that have not filed returns.

"We have discovered 23 lakh those who have invested their income, but have certainly not filed returns. I will be sending out letters for them asking them information on their tax returns, " an public said.

The I-T department is spreading it's net over folks who conducted high-value deals in 2010-11 and 2011-12. The government is trying to meet it's revenue collection target due to this financial year.

"We will attempt to recover taxes in the bigger defaulters by simply March. We will likely be sending details regarding the non-filers and stop-filers towards respective assessing officers, " the public added.
The tax department has already issued letters inside 2. 45 lakh instances.

The Finance Ministry is also developing a modal on the e-filing portal which will provide individual taxpayers information on returns not submitted, ITR-V not submitted and demands certainly not paid, among others, as a action toward greater visibility.

The government plans to recover over Rs 6. 68 lakh crore from direct taxes in this particular financial year, up 18 per cent from Rs 5. 65 lakh crore inside 2012-13.
Highlights of Budget 2014

Highlights of Budget 2014

Finance Minister Mr. P.Chidamaram presented budget 2014 on 17 February 2014. The key highlights of this budget are as follows.
* Income tax rates kept unchanged;
* 10 pc surcharge on 'super-rich' having annual income above Rs 1 crore to continue;
* 5 pc surcharge on corporates with turnover of Rs 10 cr
* Fiscal deficit at 4.6 pc in 2013-14 and 4.1 pc next year, revenue deficit at 3 pc in 2013-14;
* Current Account Deficit to be USD 45 bn as against USD 88 bn in 2012-13;
* Excise duty on small cars, motorcycles and commercial vehicles cut from 12 to 8 pc;
* Excise duty on SUVs cut from 30 to 24 pc
* Large and mid-segment cars from 27-24 pc to 24-20 pc
* Excise duty on mobile handset to be 6 pc on CENVAT credit to encourage domestic production
* Defence allocation increased by 10 per cent to Rs 2.24 lakh crore;
* Excise duty cut on capital goods, non consumer durables cut from 12 to 10 per cent
* Moratorium on interest on student loans taken before March 31, 2009; to benefit 9 lakh borrowers
* USD 15 bn addition to forex exchange in 2013-14;
* Disinvestment target for FY14 cut to Rs 16,027 cr versus Rs 40,000 cr; next year govt eyeing Rs 36,925 cr;
* Lowers residual stake sale target to Rs 3,000 cr from Rs 14,000 cr for this fiscal;
* Foodgrain production estimated at 263 million tonnes in 2013-14;
* Govt obtains information in 67 cases of illegal offshore accounts of Indians;
* Govt's net borrowing in next fiscal to be Rs 4.57 lakh cr;
* Plan expenditure cut by Rs 79,790 cr for current fiscal;
* Allocates Rs 1,000 cr more to Nirbhaya Fund;
* CCI cleared 296 projects worth Rs 6.6 lakh cr by end Jan;
* GDP to grow by at least 5.2 pc in Q3 and Q4 in 2013-14;
* Plan expenditure for 2014-15 at Rs 5.55 lakh cr and non-plan at Rs 12.08 lakh cr;
* Govt to infuse Rs 11,200 cr in PSU banks next fiscal;
*Government gets Rs 88,188 cr as dividend from PSUs, Rs 14,000 crore more than budgeted
* PSUs to achieve record
Income tax slabs for financial year 2014-15 and analysis year 2015-16

Income tax slabs for financial year 2014-15 and analysis year 2015-16

The new income tax slabs for the financial year 2013-14 and the analysis year 2014-15 are as follows.

A. Normal Rates of tax:

Total Income
Rate of tax
Where the total income does not exceed Rs.   2,00,000/-.
      Nil
Where the total income exceeds Rs. 2,00,000
but does not exceed Rs. 5,00,000/-.                  
       10 per cent of the amount by which the total income exceeds Rs. 2,00,000/-
Where the total income exceeds Rs. 5,00,000/-        but does not exceed Rs. 10,00,000/-.
      Rs. 30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
Where the total income exceeds Rs. 10,00,000/-.
    Rs. 1,30,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-
B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

Sl. No
Total Income
Rate of tax
1
Where the total income does not exceed Rs. 2,50,000/-.
Nil
2
Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000/-.
   10 per cent of the amount by which the total income exceeds Rs. 2,50,000/-
3
Where the total income exceeds Rs. 5,00,000/-  but does not exceed Rs. 10,00,000/-.
        Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4
Where the total income exceeds Rs. 10,00,000/-.
      Rs. 1,25,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-
C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

Sl. No
Total Income
Rate of tax
1
Where the total income does not exceed Rs. 5,00,000/-.
 Nil
2
Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000/-.
    20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-
3
Where the total income exceeds Rs. 10,00,000/-.
   Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-
-          Surcharge on Income tax:
There will be no surcharge on income tax payments by individual taxpayers during FY 2013-14 (AY 2014-15).

-          Education Cess on Income tax:
The amount of income-tax shall be increased by Education Cess on Income Tax at the rate of two per cent of the income-tax.

-          Secondary and Higher Education Cess on Income-tax:
From Financial Year 2007-08 onwards, an additional surcharge is chargeable at the rate of one per cent of income-tax (not including the Education Cess on income-tax).

-         There is a rebate of 2000 rupees for the income bracket of 200000-500000. This rebate is maximum of 2000 or income tax payable whichever is less.
-          
Education Cess, and Secondary and Higher Education Cess are payable by both resident and nonresident assessees.
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Exemption of rice from service tax

Exemption of rice from service tax

Service tax department issued a circular no. 177/2014 dated 17 February 2014 about service tax exemption on rice. Full circular is as under.

Doubts have been raised regarding the scope and applicability of various exemptions available to various activities in relation to rice, under the negative list approach. These doubts have been examined and clarifications are given below: 

2.         These doubts have arisen in the context of definition of ‘agricultural produce’ available in section 65B(5) of the Finance Act, 1994. The said definition covers ‘paddy’; but excludes ‘rice’. However, many benefits available to agricultural produce in the negative list [section 66D(d)] have been extended to rice, by way of appropriate entries in the exemption notification.

3.         Transportation of rice:

3.1 by a rail or a vessel: Services by way of transportation of food stuff by rail or a vessel from one place in India to another is exempt from service tax vide  exemption notification 25/2012-ST dated 20th June, 2012 [entry sl.no.20(i)]; food stuff includes rice.

3.2 by a goods transport agency: Transportation of food stuff by a goods transport agency is exempt from levy of service tax [exemption notification 25/2012-ST dated 20th June, 2012 [entry sl.no.21(d)];  amending notification 3/2013-ST dated 1st March 2013]. Food stuff includes rice.

4.         Loading, unloading, packing, storage and warehousing of rice:  Exemption has been inserted in the exemption notification 25/2012-ST dated 20th June, 2012 [entry sl.no.40];  amending notification 4/2014-ST dated 17th February 2014 may be referred.

5.         Milling of paddy into rice: When paddy is milled into rice, on job work basis, service tax is exempt under sl.no.30 (a) of exemption notification 25/2012-ST dated 20th June, 2012, since such milling of paddy is an intermediate production process in relation to agriculture.

6.         Reference may be made to JS, TRU in case of any further doubt. Trade Notice/ Public Notice may be issued. Hindi version to follow.
Income tax new section 80EE deduction on interest on loan sanctioned on FY 2013-14

Income tax new section 80EE deduction on interest on loan sanctioned on FY 2013-14

Under the provisions of section 24 of the Income-tax Act, before amendment by the Act, income chargeable under the head ‗Income from House Property‘ is computed after making the deductions specified therein. The deductions specified under the aforesaid section are as under:-

i. A sum equal to thirty per cent of the annual value;

ii. Where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital.

It has also been provided that where the property consists of a house or part of a house which is in the occupation of the owner for the purposes of hisown residence or cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him, then the amount of deduction as mentioned above shall not exceed one lakh fifty thousand rupees subject to the conditions provided in the said section.

Keeping in view the issue of affordable housing for families, an additional benefit for first home-buyers has been provided by inserting a new section 80EE in the Income-tax Act relating to deduction in respect of interest on loan taken for residential house property.

Section 80EE provides that in computing the total income of an assessee, being an individual, deduction shall be allowed on account of interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.

The deduction under the said section shall not exceed one lakh rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on 1st April, 2014 and in a case where the interest payable for the previous year relevant to the said assessment year is less than one lakh rupees, the balance amount shall be allowed in the assessment year beginning on 1st April, 2015.

The deduction shall be subject to the following conditions:- (i) the loan is sanctioned by the financial institution during the period beginning on 1st April, 2013 and ending on 31st March, 2014; (ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees; (iii) the value of the residential house property does not exceed forty lakh rupees; (iv) the assessee does not own any residential house property on the date of sanction of the loan.

It is also provided that where a deduction under section 80EE is allowed for any assessment year, in respect of interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provisions of the Income Tax Act for the same or any other assessment year. The term ―financial institution‖ has been defined to mean a banking company to which the Banking Regulation Act, 1949 applies including any bank or banking institution referred to in section 51 of that Act or a housing finance company. The term ―housing finance company‖ has been defined to mean a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.

18.4 Applicability: - This amendment takes effect from 1st April, 2014 and accordingly applies in relation to the assessment year 2014-15 and assessment year 2015-16.

Income tax calculator for all the financial year

People need to search and download different calculators for different financial years as income tax slabs generally change in each year in budget. So it is a boring as well as complex work to have all the softwares for calculating income tax.

One of my friend Mr. Pranab Banerjee has developed an excel based income tax calculator for all the financial year. It also called life time income tax calculator. One need to know the income tax slabs for the financial year before using this excel calculator. The features of this calculator are as follows.

- Its an excel based calculator.
- This is income tax calculator for all the financial years.
- One need to put the right income tax slabs for using that calculator.
- One need to put maximum relief under section 80C.
- One need to put limit of relief.
- It will prepare maximum of 50 employees income tax calculation at one time.




Download calculator
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Virtual credit card technology coming to India

Virtual credit card technology coming to India

 Internet 1 Universal Electronic Payment System Technology (Net1), dual-listed in america and South Africa, is planning a roll-out of their services in India in a link-up with international payments company Visa.

Net1's leader and chairman Serge Belamant stated the Indian government was keen on the biometric verification technology that the company has been using in South Africa.

This is usually to ensure secure check of social stability grants.

But this company. is still dealing with a battle regarding alleged irregularities when it absolutely was awarded the multi-million buck tender for administration of social grants by the South African federal government.

Competitor AllPay, a subsidiary of Absa Standard bank, successfully challenged the awarding with the tender in December last year, when the Constitutional Court found that the tender process ended up being invalid. The court is usually to pronounce this week on remedy that must be made.

Reporting the business's second quarter results to shareholders, Belamant said they can extend its common electronic payment technique and virtual bank card technology to Asia by leveraging co-operative deals between South Africa, Brazil and Asia.

There was zero indication of financial returns to the company in Asia, while no discussions had occurred with Brazil but, Belamant said.

"We have developed and market a thorough transaction processing alternative that encompasses each of our smart card-based different payment system to the unbanked and under-banked populations connected with developing economies and also for mobile financial transaction channels, ' Net1 claims on its internet site.

"Our market-leading technique can enable the billions of people globally exactly who generally have minimal or no use of a bank account to enter affordably in electronic transactions with each other, government agencies, companies, merchants and other financial agencies.

Net1 said their offline capability meant that users can conduct transactions whenever you want with other minute card holders in even by far the most remote areas so long as a smart minute card reader, which is usually portable and battery power powered, is accessible.
Labour Ministry asked EPFO to issue Permanent account number

Labour Ministry asked EPFO to issue Permanent account number

This Labour Ministry has asked EPFO to provide permanent PF account numbers to it is 5 crore members inside a time-bound manner in order that they don't need for you to transfer provident fund accounts after modifying jobs.

According for you to sources, the direction with this regard was fond of the Employees' Provident Account Organisation (EPFO) simply by Labour Secretary Gauri Kumar with the February 5 meeting with the Central Board connected with Trustees (CBT), the apex decision making body with the organisation.
"Kumar asked EPFO's Core Provident Fund Commissioner Ok K Jalan for you to apprise the aboard in its next meeting regarding the progress over the project in order to provide a timeline for completing the task, " the supply further said.

The subsequent meeting, however, hasn't been scheduled so much.

The permanent PF account number would also help provide interpersonal security benefits for you to workers in industries like construction where by they change contractors and place of work frequently.
According for the 'Action Plan' handed over by the Time Ministry, the EPFO has to do place a process for unique employee number which may eventually make it is facilities on thee traces of core checking service.
An official associated with the project said it's not at all difficult to produce this facility with 2014-15 as virtually all 123 field offices with the EPFO are digitised and will be connected to some central server.
To deliver permanent PF account numbers to customers, EPFO will have to set up a central server which may be connected to any or all of its 123 area offices.

At present, the EPFO subscribers need to apply for shift of PF balances on changing work opportunities. They are provided a fresh PF account number whenever they change work opportunities.
The EPFO in October not too long ago started the center of online shift of PF account on changing work opportunities.

The facility connected with online transfer connected with PF accounts has reduced the project load of the EPFO substantially seeing that over 13 lakh software are filed intended for such claims annually.

The EPFO needs 1. 2 crore promises in 2013-14, which include around 13 lakh PF shift claims. During 2012-13, that settled 107. 62 lakh claims. Eighty eight per cent of these were processed within thirty days, as prescribed through the body's citizen rental.
ITR V due date filin has extended up to 31-3-2014 for AY 2009-10 10-11 and 11-12

ITR V due date filin has extended up to 31-3-2014 for AY 2009-10 10-11 and 11-12

Income tax department has extended due date for filing ITR V upto 31 March 2014 for the assessment year 2009-10, 2010-11 and 2011-12. Income tax department issued a circular no. 4/2014 dated 10 February 2014 regarding this extension of due date for filing ITR V. Full circular is as under.

Several instances of grievances have come to the notice of the Board stating that a large number of returns-of-income for Assessment Year ('AY') 2009-2010, which were electronically filed without a digital signature in accordance with procedure laid down under the Income-tax Act, 061 ('Act'), were not processed as such returns became non-est in law in view of Circular No. 3 of 2009 of CBDT dated 21.05.09. Paragraphs 9 and 10 of the said Circular laid down that 1TR-V had to be furnished to the Centralised Processing Centre ('CPC'), Bengaluru by post within 30 days from the date of transmitting the data electronically and in case, 1TR-V was furnished after the stipulated period or not furnished, it was deemed that such a return was never furnished. It was claimed by some of the taxpayers that despite sending ITR-V through post to CPC within prescribed time-frame, the same probably could not reach CPC and thus such 4eturns became non-est. Since ITR-V was required to be sent through (ordinary) post at a 'post box' address, there were no despatch receipts with the concerned senders in support of their claim of having furnished 1TR-V to CPC within prescribed time limit.

2. Subsequently CBDT extended the time-limit for filing ITR-V (re1ati4 to Income-tax returns filed electronically without digital signature for AY 2009-2010) upto 31.12.2010 for 120 days from the date of filing, whichever was later. It also permitted sending of ITR-V either by ordin4ry or speed post to the CPC. However, for the AY 2009-10, some cases were still reported where return was declared non-est due to non-receipt of ITR-V by CPC even within such extended time-frame and conseq4ently the refunds so arising continue to remain held up.

3. Likewise, for AY's 2010-11 and 2011-12, though relaxation of time for furnishing ITR-V was granted
by Director General of Income Tax (Systems), it has been noticed that a large number of such electronically filed returns still remain pending with Income-tax Department for want of receipt of valid ITR-V Certificate at CPC.

4. The matter has been examined. In order to mitigate the grievances of the taxpayers pertaining to non
receipt of tax refunds, Central Board of Direct Taxes, in exercise of powers under section 119(2)(a) of the Act, hereby further relaxes and extends the date for filing ITR-V Form for Assessment Years 2009-10, 2010-11 and 2011-12 till 31.03.2014 for returns e-Filed with refund claims within th4 time allowed under section 139 of the Act The taxpayer concerned may send a duly signed copy of 1TR-V to the CPC by this date by speed post. In such cases, Central Board of Direct Taxes also relaxes the time-frame of issuing the intimation as provided in second proviso to sub section (1) of Section 143 of the Act and directs that such returns shall be processed within a period of six months from end of the month in which ITR-V is received and the intimation of processing of such returns shall be sent to the assessee concerned as per laid down procedure. 

5. Provision of sub-section (2) of section 244A of the Act would apply while determining the interest on such refunds. 

6. The taxpayer concerned may ascertain whether ITR-V has been received in the CPC, Bengaluru or not by logging on the website of Income-tax Department - http:/incometaxefiling.gov.in/e-Filing/Services/lTR-V Receipt Status.html by entering PAN No. and Assessment Year or e-Filing Acknowledgement Number. Alternatively, status of ITR-V could also be ascertained at the above Website under 'Click to view Returns/Forms' after logging in with registered e-Filing account. In case ITR-V has not been received within the prescribed time, status will not be displayed and further steps would be required to be taken as mentioned above. 

Export of prohibited item under advance autorization

Export of prohibited item under advance autorization

Custom department issued a circular no. 4/2014 dated 10 February 2014 about export of prohibited item under advance authorization. Full circular is as under.

The Department of Revenue has issued notification no. 01/2014-Customs dated 17.01.2014 to implement changes in the Foreign Trade Policy (2009-14) which have been made vide Department of Commerce  Notification No. 51(RE-2013)/2009-2014 dated 14.11.2013 read with DGFT’s Public Notice No.37/2009-2014(RE-2013) dated 14.11.2013.

2.         The changes in the FTP provide for permitting the export of items which are otherwise prohibited for export, namely, items falling under Chapter 7 and 15 of ITC (HS) Schedule 2, under the Advance Authorization Scheme with specific conditions that are stricter than under a normal Advance Authorization. In such cases, the Advance Authorization will contain specific mention of the Public Notice No. 37/2009-2014(RE-2013) dated 14.11.2013.

3.         Amongst the stricter conditions are – (a) export is subject to pre-import condition and  the resultant product exported has to be manufactured out of the raw material already imported under the scheme (b) there has to be notified SION/prior fixation of norms by Norms Committee in terms of Para 4.4.2 of HBP Vol.1 (c) the Import/Export is permitted only through specific  EDI enabled ports (d) EO period is 90 days from the date of clearance on import with no extensions (e)  facility of regularisation of bonafide defaults under para 4.28 of HBP vol.1 is not available (f) imported material is subject to actual user condition and no transfer for any purpose, including job work, is permitted (g)  imported material found defective or unfit for use has to be re-exported within thirty days, extendable by another thirty days.

4.         Further, at the time of export an undertaking from the authorization holder has been prescribed to the effect that the resultant products, being exported against the authorization, which is otherwise prohibited for export, has been manufactured from the material already imported under the authorization. This undertaking is to also contain details of imports and exports made under the authorization. This condition has been prescribed to enable the customs officer to form a reasonable satisfaction that the goods under export are not the prohibited goods. The officer is to record suitable comments in this regard in the EDI field for departmental comments.

5.         The field formations may also keep in view the Circular No. 5/2010-Cus dated 16.3.2010 and instruction no. 609/119/2010-DBK dated 18.1.2011.

6.         This may be brought to the notice of the trade by issuing suitable Trade/ Public Notices. Officers may be suitably guided through Standing Orders. Difficulties faced, if any, in implementation of the Notification may be brought to the notice of the Board at an early date.
All about home saver loan and excel based calculator

All about home saver loan and excel based calculator

Sometimes one feels cheated when having a home loan from any bank. Point is that the rate of interest is fluctuating and not fixed. This means if rate of interest goes up, one need to pay either more in EMI or the tenure of the EMI will increase. And often one has the spare money but he thinks either to prepay the loan or take it in emergency funds.

So in this contrast he is unable to do anything and in last found himself cheated because he is paying interest on the loan whereas he has the spare money of which no interest is generated.

So this is a new concept of home loan which is called Home Saver Loan.

What is Home Saver Loan?
In this concept, the borrower allowed to open a linked current account to the home loan account and transfer the extra money in this account. This money will be deducted while calculating the interest on home loan. The average monthly balance will be considered and the money will be deducted from the home loan taken while calculating the home loan interest.

However the borrower will not get any interest on the money in the current account. And typically the home saver loan will cost some high rate of interest from the general home loan around 0.51% more. Like if the home loan rate of interest is 11%, then the home saver loan rate of interest will be around 11.5%.
This facility is providing by the leader banks such as SBI, IDBI bank, Citibank, HSBC, Standard chartered bank.

 How it works
It works with the basic principal. Suppose A has the home loan of 20 lakh for 20 years with 10.5% rate of interest.
A is paying an EMI of 19968 rupees. In this calculation A will pay 2792223 rupees of interest for a 20 lakh rupees home loan in 20 years.

If we look in the second option which is home saver loan, in the same condition, the rate of interest will go up to 11% and EMI will be 20644 rupees. If A has the extra money of 3 lakh which he deposited in the current linked account, then he needs to pay only 154 EMI out of 240 and the interest amount paid will be 1107552 rupees.

So A will save 1684671 rupees of interest amount choosing the second option.

Advantages
1- One can easy withdraw the amount from the current account if needed.
2- One can choose for recurring deposit (RD) in this account like a small part of the salary.
3- It saves a lot of money.

Disadvantages
1- One needs to pay more rate of interest.
2- No interest on current account amount.
3- Banks has threshold limit for this account which may be differ to differ and threshold limit is according to the annually salary like Slandered Chartered Bank has threshold is Rs. 2.76 lakh per annum.

So this is an excel based home loan vs. home saver loan calculator for showing which can benefit you.

Keywords-home saver loan, what is home saver loan, home saver loan calculation, rate of interest in home saver loan, home saver loan banks, banks which gives home saver loan, how to apply for home saver loan

New income tax section 32AC incentive for installtion of plant and machinery

New income tax section 32AC incentive for installtion of plant and machinery

In order to encourage In order to encourage substantial investment in plant or machinery, a new section 32AC has been inserted in the Income-tax Act to provide that where an assessee, being a company,—

(a) is engaged in the business of manufacture of an article or thing; and

(b) invests a sum of more than Rs.100 crore in new assets (plant or machinery) during the period beginning from 1st April, 2013 and ending on 31st March, 2015, then, the assessee shall be allowed—

(i) for assessment year 2014-15, a deduction of 15 percent of aggregate amount of actual cost of new assets acquired and installed during the financial year 2013-14, if the cost of such assets exceeds Rs.100 crore;

(ii) for assessment year 2015-16, a deduction of 15 percent of aggregate amount of actual cost of new assets, acquired and installed during the period beginning on 1st April, 2013 and ending on 31st March, 2015, as reduced by the deduction allowed, if any, for assessment year 2014-15.

10.2 The phrase ―new asset‖ has been defined as new plant or machinery but does not include—

(i) any plant or machinery which before its installation by the assessee was used either within or outside India by any other person;

(ii) any plant or machinery installed in any office premises or any residential accommodation, including accommodation in the nature of a guest house;

(iii) any office appliances including computers or computer software;

(iv) any vehicle;

(v) ship or aircraft; or

(vi) any plant or machinery, the whole of the actual cost of which is allowed as deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head ―Profits and gains of business or profession‖ of any previous year.

10.3 Further, the suitable safeguards have been provided to restrict the transfer of the plant or machinery for a period of 5 years. However, this restriction shall not apply in a case of amalgamation or demerger but shall continue to apply to the amalgamated company or resulting company, as the case may be.

10.4 Applicability: This amendment takes effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.
Tags-section 32ac income tax,income tax section 32ac,section 32ac,32ac income tax
How to manage credit card outstanding dues

How to manage credit card outstanding dues

Swiping credit cards is definitely very easy, but managing as well as repaying the dues never been too uncomplicated. Most of the credit-based card customers can't manage and repay their credit cards due to their own sloppy spending behaviors and negligence concerning the mechanics of cards. We'll look into each one of these issues and the methods to overcome them.

Know the basics:

Nothing starts functioning well without understanding the basics; the customer should be cautious to understand basic terms and conditions by going with the fine print. Figuring out basic terms including billing cycle, minimum-amount due as well as grace period is indispensable to regulate both spending as well as repayment patterns, and any disregard on our part could result in spiraling interest fees. Any sound settlement strategy starts together with strong basics.

Put an entire stop to unreliable spending:

Today, the vast majority of purchases have come to be slicker than we may think due to advent of more stores and online looking marts, and consequently we end up within a spending spree by simply completely losing handle. A manageable debts always follows the controlled debt, and as such the imperative to halt sloppy spending behaviors.

The above discussed points constitute principle requirements to correctly plan and control the repayment of credit-based card dues because even the top repayment strategies don't succeed without good debts control.

Pay the dues from the billing cycle.
Step one is to make certain that the debt or the interest costs do not spiral unmanageable, and a sure way to make this happen is to make certain that the entire outstanding amount is paid from the billing cycle or maybe the provided elegance period. This is easier in theory, but many card holders employ this strategy effectively by simply timing their invest in and repayment from the billing cycle. You might become a comfort user by paying down all your bills from the grace period without any interest, but this choice comes into effect only when the previous bill can also be settled before the particular billing cycle or maybe grace period.

Incognito the dues in EMIs:

In event of big admission purchases, a cardholder can certainly convert his buying into equated monthly installments. This option works being a consumer loan where the loan amount as well as the interest component is changed into EMIs and repaid over a period of 6 to two years as monthly installments. Not all purchases are eligible under this solution, the total purchase has got to cross a minimum amount threshold limit as well as, in some situations, the purchase must be only from particular merchant outlets. The purchases should be converted into EMI just a period of 30 days from the time frame of purchase. Nearly all cards offer a couple of options under this particular category: low-interest solution and interest-free solution. Under the low-interest solution, the interest rate charged is lower compared to a interest rate that will have been charged on the total purchase amount when the EMI option wasn't exercised. In event of zero-interest solution, no interest is charged for the complete period during which the exact amount is repaid through monthly installments; merely a big ticket obtain a selected merchant or possibly a purchase above the particular minimum amount can be eligible under this particular scheme. Generally within the zero interest scheme the tenor can be comparatively short.

Stability transfer:
In situations of cash emergency, a cardholder can wisely select the balance transfer capability. Under this capability, the outstanding balance in one card is transferred to another card issued by way of different bank for a lower interest rate. A balance transfer is normally done either to avail less interest rate as well as thereby curtail spiraling interest cost or to consolidate the full outstanding amount under one particular card to ensure it is more manageable. The flip side of this facility is the low interest rate can be obtained only for your initial few months, along with the account reverts to the prevailing normal interest after this initial period of 3 to 6 months. Generally, a processing fee of 1 to 2 % is charged on the transfer, and it typically takes 7 to 10 days for the balance to get transferred. Besides, the amount that can be transferred is generally available to 75% of the whole limit available in the new card. The cardholder shouldn't have did not pay the minimum amount amount due under both cards during transfer. Some cards do provide the option of paying the total transferred in EMIs such as the SBIBSE 1. 50 % credit-based card.

Under extreme cases in the event the debt hits the particular ceiling, the best option is usually to repay the entire amount which has a personal loan. Personal loans complete offer lower interest rates when compared with credit cards and are better manageable together with regular EMIs. But credit-based card dues need definitely not be paid always with the personal loan route, a controlled spending pattern and a well planned settlement strategy would ensure a well was able debt.. The credit-based card should be used as an instrument to leverage cash flows, and this depends on the way we develop the practice of spending sensibly and prudently.
Banks will shut on 10 and 11 February due to strike

Banks will shut on 10 and 11 February due to strike

This two-day all-India traditional bank strike call distributed by the United Forum of Bank Unions (UFBU) intended for February 10-11 stands for the reason that conciliatory talks held inside the Capital today failed.

The strike call stands for the reason that Indian Banks' Association (IBA) declined to raise their earlier offer you of wage boost of 10 per cent on payslip price, C. H. Venkatachalam, Common Secretary, All Indian Bank Employees' Association.

Efforts by Key Labour Commissioner B. K. Sanwaria, whom presided over the current meeting, to avert the strike failed to yield any consequence, sources close to the development said.
Basic salary cap for EPFO will be Rs. 15000

Basic salary cap for EPFO will be Rs. 15000

This Finance ministry offers cleared the Employees' Provident Deposit Organsiation's (EPFO) proposal to get the monthly fundamental salary cap to help Rs 15, 000.

Currently, the cap are at Rs 6, 500.

All employees with around Rs 15, 000 basic month-to-month salary will mandatorily need to contribute at least 12 % of their salary towards the employee provident fund (EPF) plus the employer will also need to make an similar contribution.

Provident fund commissioner KK Jalan explained now the proposal should go to Central Board of Trustees (CBT), that can notify it as well as send it on the Labour Ministry.

He said this CBT in the February 5 meeting will discuss the way to implement this pitch.

"With elections due in May as well as model code gonna come into force the following month, if the proposal has to be implemented, it has to be done within monthly, " he explained.

The Finance Ministry got earlier also eliminated the proposal regarding minimum pension regarding Rs 1, 000 monthly to pensioners. Currently, they are receiving a typical Rs 562. As outlined by EPFO, there usually are 2. 8 million pensioner who definitely are receiving less as compared to Rs 1, 000 monthly as pension.
Income tax return is defective return if no self assessment tax is paid

Income tax return is defective return if no self assessment tax is paid

The provisions contained in sub-section (9) of section 139, before amendment by the Act, provide that where the Assessing Officer considers that the return of income furnished by the assessee is defective; he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days. If the defect is not rectified within the time allowed by the Assessing Officer, the return is treated as an invalid return. The conditions, the non-fulfillment of which renders the return defective have been provided in the Explanation to the aforesaid sub-section. Section 140A provides that where any tax is payable on the basis of any return, after taking into account the prepaid taxes, the assesse shall be liable to pay such tax together with interest payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, before furnishing the return. It has been noticed that a large number of assesses furnish their returns of income without payment of self-assessment tax.

With a view to ensure compliance of the provisions of section 140A, the Explanation to sub-section (9) of section 139 of the Income-tax Act has been amended to provide that the return of income shall be regarded as defective unless the tax together with interest, if any, payable in accordance with the provisions of section 140A has been paid on or before the date of furnishing of the return.

Applicability: - This amendment takes effect from 1st June, 2013.
New EDPMS Export data processing and monitoring system

New EDPMS Export data processing and monitoring system

Reserve bank of India issued a circular no. 101 dated 4 February 2014 about new EDPMS Export data processing and monitoring system. Full circular is as under.

 Attention of Authorised Dealers is invited to A. P. (DIR Series) Circular No. 12 dated September 9, 2000 in terms of which AD Category – I banks are required to furnish the various returns/statements relating to export of Goods/Services as given under Part C- Authorised Dealer obligation in the annexure of the said circular. The mode/manner of submission of return has been amended from time to time.

2. As of now, AD banks are submitting the various returns like XOS (export outstanding statements), ENC (Export Bills Negotiated / sent for collection) for acknowledgement of receipt of Export documents, Sch.3 to 6 (realization of export proceeds), EBW (write-off of export bills), ETX (extension of realization of export bills) relating to Export transaction under FEMA to RBI. These various returns are being managed on a different solo application or manually.

3. With a view to simplify the procedure for filling various returns and for better monitoring, a comprehensive IT- based system called EDPMS has been developed which will facilitate the banks to report all the above mentioned returns through a single platform. In the new system, the primary data on exports transactions including offsite software exports from all the sources viz. Customs/SEZ/STPI will flow to RBI secured server and then the same will be shared with the respective banks for follow up with the exporters. Subsequently, the document submission and realization data will be reported back by the AD banks to RBI through the same secured RBI server so as to update the RBI database on real time basis to facilitate quicker follow up/ data generation. The AD banks are required to download and upload the data on daily basis.

4. The system will also facilitate the Authorised Dealer to raise the Authorised Dealer (AD) transfer request in case of Export document submitted to the Authorised Dealers other than declared in the export document which will discontinue the paper based NOC issued by the AD banks. AD banks have to approve/disapprove the AD transfer request within 7 days from date of request.

5. The date of inception of the system along with user credentials and web link for accessing the system would be communicated to the AD banks shortly through e-mail. For user name and password, AD banks are advised to submit a fill-in form (format annexed) through E-mail on or before February 10, 2014. Clarification required, if any, may also be sent to the aforesaid email-id of Reserve Bank of India.

6. A cut-off date for shipping documents to be reported in the new system will be notified shortly which will be the commencement date of the new system. The entire shipping document should be reported in the new system after cut-off date and old shipping documents would continue to be reported in the old system till completion of the cycle. Both the old and new systems will run parallel to each other for some time before the old system is discontinued.

7. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

8. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. 
RBI circular on third party payment for export or import transactions

RBI circular on third party payment for export or import transactions

Reserve bank of India issued a circular no. 100 dated 4 February 2014 about third party payments for import and export transactions. Full circular is as under.

Attention of Authorized Dealer Category – I banks is invited to A. P. (DIR Series) Circular No.70 dated November 8, 2013, in terms of which they have been permitted to allow third party payments for export of goods & software / import of goods subject to the conditions stated therein.

2. In view of the difficulties faced by exporters / importers in meeting the condition “firm irrevocable order backed by a tripartite agreement should be in place” specified in the abovementioned Circular, it has been decided that this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments / name of the third party being mentioned in the irrevocable order/ invoice has been produced. This shall be subject to conditions as under:

(i) AD bank should be satisfied with the bona-fides of the transaction and export documents, such as, invoice / FIRC.

(ii) AD bank should consider the FATF statements while handling such transaction.

3. Further, with a view to liberalising the procedure, the limit of USD 100,000 eligible for third party payment for import of goods, stands withdrawn.

4. All other terms & conditions mentioned in the A. P. (DIR Series) Circular No.70 dated November 8, 2013 remain unchanged.

5. AD Category – I banks may bring the contents of this Circular to the notice of their constituents concerned.

6. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

TDS certificate of nil or lower rate u/s 197 or 197A

TDS certificate of nil or lower rate u/s 197 or 197A

CPC(TDS) team feels glad to constantly update our stakeholders with relevant advisory communications from time to time. This communication seeks to provide important information related to a Certificate issued for Deduction of Tax at Lower/ NIL Rates under section 197/197A of the Income Tax Act,1961.

About Certificate u/s 197/ 197A:

Assessing Officer can issue a certificate for lower or no deduction of tax:

. To the deductee, if is a resident or

. To the deductor, where the deductee is a non-resident

. If the Assessing Officer is satisfied that the t otal income of the deductee justifies deduction of tax at a lower or nil rate.

Accordingly, the clause provides that the deduction shall be made in accordance with the certificate, until such certificate is cancelled by the Assessing Officer or the expiry of the validity of the certificate, whichever is earlier.

Actions to be taken on receipt of the certificate:


. Please validate the PAN of the deductee submitting the certificate

. The Certificate should be valid for the PAN, Section and Rate which has been mentioned in the statement fiiled.

. Check that the certificate is valid for the relevant Financial Year

. Verify that the threshold limit for the certificate has not been exceeded in previous quarters.

. Correct certificate number should be quoted in the statement. Example of Correct Certificate Number - 2XXXAH7XXE

. Raise the Flag "A" in the statement for a certificate u/s 197 and Flag "B" for certificate u/s 197A.

. Please ensure that the Certificate Number is mentioned in the Deductee detail of the statement. (For F.Y.2013-14 Onwards)

. If you are in receipt of a CPC(TDS) Intimation u/s 200A/ 154 for Short Deduction, you are requested to download the Justification report. The details of the Short Deduction due to an issue with the 197/197A certificate can be checked under the TAB "Short Deduction due to 197 Certificates". You may verify the details and correct in accordance with the above guidelines.

. If a Correction Statement is being submitted, please ensure that the above has been taken care of for the Conso File downloaded from TRACES.

Please refer to our e-tutorial<https://www.tdscpc.gov.in/en/download-nsdl-conso-file-etutorial.h
tml> for any assistance with Conso File.

Caution to be exercised for the following:


. Please ensure that Flag A/B is not raised for any Invalid PAN.

. Please do not raise Flag A/ B for a PAN which does not have the above certificate.

. Avoid mentioning Section code in the "Certificate Number" field of the statement.

. Expired certificates are not to be used.

. Please check that the threshold limit has not been exceeded in the previous quarter.
New TDS rule of transfer of immovable property

New TDS rule of transfer of immovable property

There is a statutory requirement under section 139A of the Income-tax Act read with rule 114B of the Income-tax Rules, 1962 to quote Permanent Account Number (PAN) in documents pertaining to purchase or sale of immovable property for value of Rs.5 lakh or more. However, the information furnished to the Income-tax Department in Annual Information Returns by the Registrar or Sub- Registrar indicate that a majority of the purchasers or sellers of immovable properties, valued at Rs.30 lakh or more, during the financial year 2011-12 did not quote or quoted invalid PAN in the documents relating to transfer of immovable property.

Under the provisions of the Income-tax Act, prior to its amendment by the Act, tax is required to be deducted at source on certain specified payments made to residents by way of salary, interest, commission, brokerage, professional services, etc. On transfer of immovable property by a non-resident, tax is required to be deducted at source by the transferee. However, there is no such requirement on transfer of immovable property by a resident except in the case of compulsory acquisition of certain immovable properties.

In order to have a reporting mechanism of transactions in the real estate sector and also to collect tax at the earliest point of time, a new section 194-IA has been inserted in the Income-tax Act to provide that every transferee, at the time of making payment or crediting of any sum as consideration for transfer of immovable property (other than agricultural land) to a resident transferor, shall deduct tax, at the rate of 1 per cent of such sum.

In order to reduce the compliance burden on the small taxpayers, it has also been provided that no deduction of tax under this provision shall be made where the total amount of consideration for the transfer of an immovable property is less than fifty lakh rupees
Income tax determination on royalty and fees for technical services

Income tax determination on royalty and fees for technical services

Section 115A of the Income-tax Act provides for determination of tax in case of a non-resident taxpayer where the total income includes any income by way of Royalty and Fees for technical services (FTS) received under an agreement entered after 31.03.1976 and which are not effectively connected with permanent establishment, if any, of the non-resident in India. Prior to amendment of section 115A by the Act, the tax was payable on the gross amount of income at the rate of 

(i) 30% if income by way of royalty or FTS is received in pursuance of an agreement entered on or before 31.05.1997; 

(ii) 20% if income by way of royalty or FTS is received in pursuance of an agreement entered after 31.05.1997 but before 01.06.2005; and 

(iii) 10% if income by way of royalty or FTS is received in pursuance of an agreement entered on or after 01.06.2005. 

India has tax treaties with 87 countries, majority of tax treaties allow India to levy tax on gross amount of royalty at rates ranging from 10 per cent to 25 per cent, whereas the tax rate as per section 115A is 10 per cent. In some cases, this has resulted in taxation at a lower rate of 10 per cent even if the treaty allows the income to be taxed at a higher rate. 

In order to correct this anomaly, the tax rate in case of non-resident taxpayer, in respect of income by way of royalty and fees for technical services as provided under section 115A, has been increased from 10 per cent to 25 per cent. This rate of 25 per cent shall be applicable to any income by way of royalty and FTS received by a non-resident, under an agreement entered after 31.03.1976, which is taxable under section 115A. 

Applicability: - This amendment takes effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.

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