May 31, 2014

Latest updated ITR1, ITR2 and ITR 4S schema for AY 2014-15

3:15 PM 0
The income tax department updated latest schema for income tax return forms ITR1 SAHAJ, ITR2 and ITR 4S SUGAM form for the analysis year 2014-15.

These are the latest updation dated 27 May 2014. There are many changes made in XML schema from the older version released for analysis year 2014-15. You must note these changes before filing income tax return.




ITR -1- This schema is version 1.2 Download

ITR-2- This schema is version 1.1 Download

ITR 4S-This schema is version 1.2 Download
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May 30, 2014

Flag raised in Form 15G or H despite income exceeding exemption

3:46 PM 0
Flag raised in Form 15G or H despite income exceeding exemption
CPC(TDS) feels glad to provide you with the new feature of downloading Form 27D, the Tax Collection Certificate for Deductees forming part of TCS Statements, filed in the form of 27EQ.

Centralized Processing Cell (TDS) has observed from its records that Flag "B" (for 15G/H Forms) has been wrongly raised in the quarterly TDS Statements as per the provisions of section 197A(1B) of the Income Tax Act, 1961. Following are the provisions of section 197A(1B) for your ready reference:

"The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax".

What is Form 15G/ H and its relevance :
Under section 197A of the Income Tax Act 1961, Form 15G / H is a self-declaration, which is provided by a person resident in India (not being a Company or Firm) to their deductor that the tax on his estimated total income of the previous year, in which such income is to be included in computing his total income, will be NIL.

The Declaration is made in the following Forms :
Form 15H - For Senior Citizens
Form 15G - For other than Senior Citizens
Consequences, if deductor wrongly raises Flag "B" for Forms 15G/H :

If the deductor raises Flag "B" for non-deduction of tax, despite the total payments made by him exceeding the taxable amount, this results into incorrect reporting in the TDS Statements.

Your attention is invited to provisions of section 201 of the Act, which reads as follows :
Where any person who is required to deduct any sum, does not deduct or does not Pay or after deduction, fails to pay,the whole or any part of the tax, then such person shall be deemed to be an assessee in default in respect of such tax.

Under section 277 of the Act, if a person makes a statement in any verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true is punishable.

Invalid PAN of deductee in TDS statements

3:43 PM 0
Invalid PAN of deductee in TDS statements
Centralized Processing Cell (TDS) has observed from its records that you have reported deductees with invalid PANs in your quarterly TDS statements. These PANs appear structurally valid, however, they are actually invalid, as they are not available in the PAN Master records.

For example, ARUPS4625S appears to be a valid PAN according to the alphabets and numerals in its structure, however, this is an invalid PAN, as this is not available in PAN Master.

What is the impact :
The impact of such errors is significant in nature, in view of following :
As per section 206AA, the tax is to be deducted at a higher rate, in case of reporting of invalid PANs. Therefore, Short Deduction is charged even if the tax has been deducted at the Section Rate, due to the applicability of section 206AA.

The deductor will not be able to generate TDS Certificates for their deductees with invalid PANs.

The taxpayer will not be able to avail correct TDS Credits

What actions to be taken :
The impact of such errors is significant in nature, in view of following :
PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to Login to TRACES and navigate to "Dashboard" to locate "PAN Verification" in the Quick Links menu.
You can also use "Consolidated TAN - PAN File" that includes all the valid PANs attached with the respective TANs. Toavail the facility, Login to TRACES and navigate to "Dashboard" to locate "Consolidated TAN - PAN File".

To correct an invalid PAN reported earlier, a C5 Correction Statement is required to be filed.
The PANs can also be corrected using our Online Correction facility with Digital Signatures. To avail the facility, you are requested to Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES.

May 29, 2014

IT department will share assessee assets details with banks

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IT department will share assessee assets details with banks
The income tax department will share assets details of assessee as per wealth tax return with the banks for nabbing  loan defaulters.Income tax department issued a press release dated 28 May 2014 regarding this issue. Full press release is as under.

During a review meeting on the performance of Public Sector Banks (PSBs) taken by Finance Minister on 5.3.2014, the PSBs raised concern that the details of assets as available in the Wealth Tax Returns of loan defaulters are not being shared by Income Tax Department with the Banks despite repeated requests. 

2. In this context, kind attention is drawn to Section 42B of the Wealth Tax Act 1957 which states that where a person makes an application to the Chief Commissioner or Commissioner in the prescribed form, seeking any information relating to any assessee in respect of any assessment made under this Act, the Chief Commissioner or Commissioner may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment 

3. In view of the fact that every Return of Wealth filed by the assessee is subject to assessment under section 16 of the Wealth Tax Act, the information contained therein qualifies for being supplied u/s 42B of the Wealth Tax Act, provided the CCWT/CWT is satisfied that supply of such information to PSBs is in public interest. CBDT in this context clarifies that information on assets of loan defaulters to enable recovery of loans by PSBs from such defaulters is in public interest. 

4. It is further clarified that such information may be provided in respect of the borrower/mortgager/guarantor of the loan only. At the time of supply of such information a confidentiality clause may be included specifying that such information be used only for the purpose of recovery of loan and will not be shared with any other person/agency. An undertaking to this effect shall be obtained from the Bank (to be signed by an officer not below the rank of the Manager of the Branch concerned) before furnishing the information. 

5. In order to ensure that the tax dues of the Department against the defaulter (if any) are safeguarded, an undertaking be obtained from the PSB to obtain a No Objection Certificate (NOC) from the jurisdictional CIT of the loan defaulter before appropriation of the surplus amount recovered from sale of
immovable/movable asset of the defaulter, information in respect of which is shared, after adjustment of its loan dues. 
6. The above guideline may be brought to the notice of all DGsIT, CCsIT and CsIT of your charge. 

Money of non operative account for 10 Years will forfeit by RBI

5:15 PM 0
Money of non operative account for 10 Years will forfeit by RBI
Generally we have some saving account which are not in use. We do some transactions in that accounts very rarely. But now be cautious!

Recent notification say that if somebody doesn't do transaction for 10 years in an account, the whole money will be gone to the RBI.

After the recent RBI directive to banks other than nationalized banks arrangement is applied . The details of such transactions and accounts of the banks money RBI on the 15th of every month to be submitted with the returns . The Reserve Bank on Tuesday issued a notification about the bank 's chairman , has advised senior executives , including MD . It has also been published in the May 24 budget .

May 28, 2014

Recent ruling which can affect you in financial terms

5:51 PM 0
Recent ruling which can affect you in financial terms
The government makes some recent ruling which may be important in your financially aspect. These ruling are with the capital markets, banking, insurance and employees provident fund. These are the recent ruling which may affect you financially.

CAPITAL MARKETS
Market regulator Securities Exchange Board of India has said that all trades undertaken by foreign portfolio investors (FPIs) in the cash market will be settled one day after the execution of the trade order.

BANKING
The Reserve Bank of India has said that a minor can now open a savings/fixed/recurring bank deposit account through either his/her natural guardian or legally appointed guardian. The minors who have attained 10 years of age will be allowed to open and operate savings bank accounts independently.

An RBI panel has suggested the setting up of a centralised bills payment system in order to enable consumers to pay all kinds of bills at one place irrespective of the services they are availing and vendors.

INSURANCE
The Insurance Regulatory and Development Authority has said that when an insurance company adopts the trade logo of any of its promoting partners, it should prominently disclose in all the insurance advertisements that the trade logo belongs to its partner.

EMPLOYEES PROVIDENT FUND
In a bid to ensure that norms are adhered to while settling PF claims of foreign workers from countries with which India does not have social security pacts, EPFO has asked its field staff to get those claims verified from the head office. As per the provision, the PF accumulations are payable on retirement after attaining 58 years of age or on retirement on account of permanent or total incapacity for work

No penalty on dormant account

5:44 PM 1
No penalty on dormant account
Reserve bank of India ruled that no penalty can be imposed on the dormant account by the banks. RBI issued a note dated 27 May 2014 regarding this. Full RBI note is as under.

Please refer to Part B of the First Bi-monthly Monetary Policy Statement 2014-15 announced on April 1, 2014, proposing certain measures towards consumer protection such as non-levy of penal charges for non-maintenance of minimum balance in any inoperative accounts.

2. In this connection, a reference is invited to para 4.4 of our circular RPCD.CO.RRB.BC.No.100/03.05.33/2013-14 dated May 12, 2014 on Customer Service in Regional Rural Banks wherein RRBs were advised to inform customers regarding the requirement of minimum balance in savings bank account and levy of charges for non-maintenance of the same at the time of opening the account in a transparent manner.

3. In terms of para 3 of our circular RPCD.CO.RRB.RCB.BC.No.24/07.38.01/2012-13 dated August 22, 2012 on ‘Financial Inclusion- Access to Banking Services - Basic Savings Bank Deposit Accounts’ RRBs were advised that no charge should be levied for non-operation/activation of Basic Savings Bank Deposit Accounts (BSBDAs).

4. It is advised that, henceforth RRBs are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account.

SIT constituted for black money with the judgement of Supreme Court

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SIT constituted for black money with the judgement of Supreme Court
New government took decision on very first day to constitute Special Investigation Team(SIT) for tax evaders who took black money abroad. This was the guidelines of Honorable Supreme Court to constitute SIT. Government of India issued a press release which is as under.

The Union Cabinet today approved constitution of Special Investigating Team (SIT) to implement the decision of the Hon’ble Supreme Court on large amounts of money stashed abroad by evading taxes or generated through unlawful activities.

The SIT will be headed by Hon’ble Mr. Justice M.B. Shah, former Judge of the Supreme Court as Chairman and Hon’bleMr. Justice Arijit Pasayat, former Judge as Vice Chairman.

The Members of the High Level Committee will comprise:

i. Secretary, Department of Revenue

ii. Deputy Governor, Reserve Bank of India,

iii. Director (IB),

iv. Director, Enforcement

v. Director, CBI

vi. Chairman, CBDT,

vii. Director General, Narcotics Control Bureau

viii. Director General, Revenue Intelligence

ix. Director, Financial Intelligence Unit

x. Director, Research and Analysis Wing and

xi. Joint Secretary (FT&IR-1), CBDT

The SIT has been charged with the responsibility and duties of investigation, initiation of proceedings and
prosecution in cases of Hasan Ali and other matters involving unaccounted money. SIT shall have jurisdiction in the cases where investigations have already commenced or are pending or awaiting to be initiated or have been completed. SIT will prepare a comprehensive action plan including creation of necessary institutional structure that could enable the country to fight the battle against unaccounted money. The SIT should report to the court the status of work from time to time.

May 26, 2014

Power of attorney- When give power to work as your behalf

5:49 PM 0
Power of attorney- When give power to work as your behalf
Ditching someone is the common practice now a days. Shahrukh Khan plays the same role in the film Baazigar when he took revenge of ditching to his father by getting Power of Attorney from the employer. 

These are many cases in real life too.


A PoA is surely an agreement by what type can authorise another individual to use certain tasks with her/ his benefit. It can provide to buy, sell or rent property; carry out financial transactions like operating bank balances, receiving payments, generating investments, etc. Even so, if not executed carefully, it can be misused, and sizzling hot out could be considered a longdrawn court challenge.

A PoA can be executed in the name of family, friends, or real estate and stock agents. Sometimes, promoters of companies practice it in the titles of employees. The individual giving the PoA is called the donor as well as grantor, while the main one to whom it is given is known as the attorney.

The PoA can be between two parties inside same city, distinct cities or distinct countries.

Matters concerning powers of legal professional are regulated because of the Powers of Law firm Act.
Mumbai- based legal professional Rizwan Siddique says the majority of people executing aPoA do not understand it.

“There have been cases when a PoA is inclined to sell property, and the purchaser issues the cheque in preference of the attorney, rather than the property owner, ” this individual says.

“They do not understand that a PoA isn't a transfer involving title document in itself, but only gives limited power to the holder to deal with the property inside name of the donor. Any misuse with the PoA or collection of any money inside personal name with the attorney shall not only make the attorney accountable for criminal prosecution, but also the said transaction should be deemed illegal and invalid, ” this individual says.

Or there tend to be cases where substantial networth individuals provide PoA to brokers to use equity trading with the person. But if the broker trades recklessly next the client could finish up losing a small fortune. So, clients need to regularly keep an eye on their investments and talk with the brokers when they suspect something.

Then there are instances that the person granting the facility revokes it, though the attorney continues to utilize the power, states that Vijay . At instances, an attorney purely signs a doc without attending on the details, which creates problems for your donor.

“Sometimes, an employee might operate the power by contracting on behalf of the employer. Usually, we see realises in newspapers on the effect that a staff has left an organisation along with the employer states he/ she could not ratify the acts with the employee, ” Vijay said.

Types of PoA
You will find two types involving PoA — standard and specific. A general PoA is one that gives an legal professional the authority to accomplish multiple things. As an example, if one will be abroad on a great assignment, one can give a PoA inside name of his/ the woman's father, authorising him to operate a bank bank account, collect rent, etc.

A specific PoA is made for specific purposes and will mention all information on the task to become carried out. As an example, assume you are intending to buy a house along with the deal will fall through if the payment isn’t produced within 20- twenty-five days. In a really case, if you need to go out involving town, you can give a specific PoA to your broker, authorising him/ her to use the transaction for you. This PoA will certainly mention all details for example the property name, the purchase price at which the offer will be transacted, the seller’s name, the period by when the offer will be concluded, the person within whose name the cheques should be issued, etc. Also, one must point out the documents the attorney can sign for you.
Some other conditions which the PoA should essentially include are the time period by when the particular transaction ( that the PoA is being given) should be complete along with the region or geographical area within that your PoA is valid.

“It is better to give a unique PoA to persons apart from family members.

This will ensure it is not misused. Supply a general PoA only when you trust anybody, ” says Rajmohan Krishnan, co- inventor and managing representative, Entrust Family Workplace Investment Advisors.
It is necessary for a person who receives a PoA to maintain a copy of every document she/ he signs within the PoA. This means, one can produce it whenever needed to show he/ she hasn’t violated the terms with the power, says Vijay.

How to register a PoA
A PoA really needs to be executed on press paper. In Maharashtra, Article 48 involving Schedule I on the Maharashtra Stamp Act provides for the stamp duty over a PoA — occasionally, the duty is actually 100; intended for others, it is actually  500. In the event the PoA relates on the sale of immovable property and it is given to someone apart from a close relative ( like broker or afriend), the stamp duty is going to be about five percent of the property’s really worth.

A PoA might be notarised or signed up. If it pertains to immovable property, it must be registered; if it refers to movable property, notarisation will certainly suffice. In like cases, an advocate must identify the man or women giving the PoA.

Also, if a PoA is actually registered, it need to have a witness. Commonly, a witness should be an authorized, not someone relevant to either the grantor as well as the attorney.

Cancelling a new PoA
If a new PoA is notarised, you'll be able to cancel it simply by crossing the deed, akin to cancelling acheque. Even so, if it is actually registered, you have to help revoke the deed and publish advertisements within this regard in a few newspapers (preferably English and regional- language ones) that are circulated in the city that the attorney resides. After this, the deed is actually automatically revoked.

In the event that an attorney misuses a new PoA and causes harm to a grantor, there isn't a other option for your grantor but to move court. Also, the grantor must register the revocation, that'll involve a unique fee.
Sometimes, power is inclined to a sub- use outside agencies for, that is, the attorney can employ another attorney. Even so, in such cases, the donor might lose control and not keep in mind who the power have been sub- delegated to help. Therefore, donors can incorporate a clause saying the attorney must give a copy of every single document signed simply by him/ her on the donor soon following a document has also been signed, says Vijay.

Commonly, a PoA expires each time a donor or legal professional dies. “ In the event the donor dies, the attorney might not be aware of this kind of and might continue to use the PoA. Or maybe, the attorney could continue to use the PoA, despite knowing the donor has passed away, ” Vijay states that.

Legal sanctity
A PoA has legal sanctity, but it may be contested in judge. Nowadays, there are safeguards in the PoA — beyond just the signature, the photograph and thumb impression should be affixed. “But not surprisingly, a person might operate the PoA for incorrect purposes or sell property or an asset for just a lower consideration than he need to, ” says Vijay.

In such a case, the affected get together might move judge against either the PoA or it's use. Someone who loses by virtue of the employment of the power could also contest it. If the PoA is used despite the fact that the donor has revoked it, the donor may contest the validity and utilization of the power.

TO COUNTERACT MISUSE OF ELECTRICAL POWER OF ATTORNEY
|Avoid a standard power of legal professional ( PoA) unless it is in the brand of close family member or someone an individual trust |Give a certain PoA with information on what the attorney are capable of doing and what documents she/ he is able to sign for you |Set a validity period for your PoA, after which will probably be automatically revoked |Get PoA signed up

|Though it isn’t obligatory, get the PoA vetted by the lawyer

May 22, 2014

Employees to get PPO soon

11:08 PM 2
Employees to get PPO soon
So as to check delay with disbursal of monthly pension, the Centre has decided to give Pension Payment Order (PPO) to any or all central government employees before retirement along using other dues.

Currently, the scheme pertaining to payment of pensions in order to central government civil pensioners through sanctioned banks, issued because of the central pension accounting office offers an undertaking to be submitted by this retiring government servant or pensioner towards the pension disbursing financial institution before commencement connected with pension.

"It may be found that the primary payment of monthly pension after retirement obtains delayed mainly on account of two reasons. A single, the delay with receipt of intimation because of the pensioner that pension papers reach the bank as well as two, delay on part of the pensioner in approaching the lending company for submission connected with undertaking, " this Ministry of Staff members said.

The pensioner might no longer be required to visit the financial institution to activate the primary payment of monthly pension, it said in a recent order.

"Therefore, after ascertaining how the bank's copy may be dispatched by this central pension sales office, the pensioner's copy from the Pension Payment Order (PPO) may be handed over to him before retirement along together with other retirement fees. This should be feasible in all of the cases where government entities servant had submitted pension papers in the time-limits, " this Personnel Ministry claimed.

An employee posted with a location away from the office of the pinnacle of Office or who for almost any other reasons feels that it might be more convenient to him to have his copy of PPO from the bank, may inform the pinnacle of Office connected with his option written while submitting his pension papers, the item said.

The Ministry connected with Personnel has asked Office of Controller Basic of Accounts to instruct all Pay as well as Accounts Offices as well as all pension disbursing banks to check out its directives.
You'll find about 30 lakh Key government pensioners.

The Ministry has additionally issued a proforma of undertaking to be filled by way of pensioner and submitted to pension releasing bank agreeing "to repayment or make good any cost you which he is just not entitled to".

May 21, 2014

How to set off losses against other heads income

11:30 PM 0
How to set off losses against other heads income
People do a lot of work and efforts to make profits, but not always, as there is always a chance of losing money in business as well as other transactions.

Income tax is charged on the profits we make, but what about losses? Income tax department provides a mechanism where you can set-off your losses against profits and thus reduce your tax liability.

Assessee can set-off losses against other heads of profits subject to some conditions. There are 5 heads in Income tax where an individual can make profits and income which are as under.
- Salary
- Income from house property
- Business income
- Capital gains
- Income from other sources
The conditions are as under with which you can set-off your losses with other heads gains in income tax.


Capital gains and losses
If a capital asset is sold after three years of purchase, the resultant gain/loss is long term. If sold before three years, it’s a short-term capital gain/loss. Short-term capital loss can be set off against any capital gain — long or short term. However, long-term capital loss can be set off only against a long-term capital gain. Any capital loss after the set-off can be carried forward up to eight financial years. A short-term loss that is carried forward can be set off against any capital gain. But a long-term capital loss that is carried forward can be set off against only long-term capital gains.

Loss incurred on selling equity
Equity and equity-based mutual funds are considered long-term assets when held for at least a year. Any loss you make on the sale of equity stocks bought less than 12 months ago are short-term capital losses and can be adjusted against short-term capital gains as well as long-term gains. Also, the unadjusted losses can be carried forward for up to eight FYs. The loss incurred on selling equity stocks bought more than 12 months ago are long-term capital losses.

Long-term capital loss on listed equities where STT is paid cannot be adjusted because the income is exempt. However, if you sell the shares offline without paying STT, the loss can be adjusted against a long-term capital gain.

Business income
Losses from business/profession can be set off against all income heads other than salary, whereas losses from a speculative activity or owning/maintaining race horses can be set off only against profits under the respective heads. The loss can be carried forward up to eight FYs and set off only against the income from business/profession.

House property
Houses bought or constructed on borrowed money are eligible for deduction of loan interest from the net annual value while calculating the income from house property. The annual value of a self-occupied
House is treated as nil. So, the entire interest paid for it becomes a loss from house property, subject to the R1.5-lakh limit. House property losses can be set off against income from any other head, including salary, in the same financial year. The remaining losses can be carried forward up to eight FYs. In subsequent FYs, such a loss can be set off only against income from house property.
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Income tax order passed under section 264 of IT act

6:31 PM 0
Income tax order passed under section 264 of IT act
The income tax department passed an order under section 264 of income tax act. Income tax department issued an instruction no. 11 dated 16 May 2014 regarding this order. Full instruction is as under.

Under Section 264 of the Income Tax Act, 1961 (hereinafter referred to as the Act), the Commissioner of Income Tax (CIT) may, either of his own motion or on an application made by the assessee, revise an order
passed by an authority subordinate to him. The CIT may, before revising such, order, make enquiry or cause such enquiry to be made and subject to the provisions of the Act, pass such order which is not prejudicial to the assessee. 
2. The statutory function under section 264 of the Act performed by the CIT is required to be reported by the CIT and also appraised by the supervisory Officers. Therefore, it has been decided to issue the following guidelines to be complied forthwith in respect of orders passed under section 264 of the Act:- 

a) The CIT shall prepare a brief of the orders passed under section 264 of the Act and report the same to the Principal Chief Commissioner of Income —Tax/ Chief Commissioner of Income —Tax (CCIT) in the monthly DO letter along with a copy of such order. 

b) The Pr. CCIT/ CCIT shall report the number of orders passed under section 264 of the Act by the CsIT under his/her jurisdiction along with his/her observation in relation to any order, if deemed fit, to the Zonal Member of the CBDT in the monthly DO letter. The Pr. CCIT/CCIT shall also communicate his/her observation to the CIT. 

3. The above Instruction may be brought to the knowledge of all concerned. 

May 20, 2014

New PAN application form 49A and 49AA notified

10:37 PM 0
The income tax department notified new PAN application forms 49A and 49AA. New PAN application forms have the feature to show mother's name in the application forms. 

Form 49A is used for PAN application for Indian residents.

Form 49AA is used by Non resident Indian.

Income tax department issued a notification no. 26 dated 16 May 2014. Full notification and new PAN application forms 49A and 49AA are as under.

S.O. 2045 (E)- In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rulesfurther to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income –tax (5th Amendment) Rules, 2014.

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

2. In the Income-tax Rules, 1962, in Appendix II, for Forms 49A and 49AA, the following Forms shall be substituted, namely:-

Download Form 49A
Download Form 49AA
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May 19, 2014

ITR 2 java based utility income tax form for Asst year 2014-15

3:01 PM 0
The Income tax department issued income tax return form ITR-2 java based utility income tax form for the assessment year 2014-15. Income tax department already issued ITR-1 SAHAJ and ITR-4S SUGAM form in java based for the assessment year 2014-145. You can download it from this link.

ITR-2 income tax Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2012-13 includes:-

(a) Income from Salary / Pension; or
(b) Income from House Property; or 
(c) Income from Capital Gains; or 
(c) Income from Other Sources (including Winning from Lottery and Income from Race Horses).
Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

Who cannot use this Return Form

This Return Form should not be used by an individual whose total income for the assessment year 2012-13 includes Income from Business or Profession.

 How to run the application?
- Ensure that java version 1.7 or more is installed.(version can be identified by executing "java -version" command)
- Unzip and extract the files in the desired path/location.

To run in WINDOWS
 
Double click ITR.bat
Or
Run from command prompt by executing "ITR.bat" (ensure that current working directory has the extracted files)

 To run in LINUX
 
Change the ITR.sh file's permission, provide execution permission by executing the following command
> chmod 755 ITR.sh
run using the command "sh ITR.sh" or ./ITR.sh



Troubleshooting

Make sure that your java version is 1.7 (version can be identified by executing "java -version" command)
1. Extract the files to a directory. (Example:  D:\Utility)
2. Open command prompt
3. Change to the extraction directory (cd D:\Utility)
4. Type the following command :
<Path to java executable> -jar <jarFileName>

For example If your Java 7 Installation path is "C:\Program Files (x86)\Java\jre7" and you are opening ITR1 then execute the following command
 
D:\Utility>"C:\Program Files (x86)\Java\jre7\bin\java" -jar ITR-1_AY201415_PR2.jar


Download ITR-2 JAVA based utility from here
Download ITR-2 in pdf format from here
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Central excise classify rice-par boiling machinery

2:40 PM 0
Central excise classify rice-par boiling machinery
Central excise department issued a circular no. 982/2014 dated 15 May 2014 about classification of rice-par boiling machinery. Full circular is as under.

I am directed to draw your attention to Circular No. 924/14/2010-CX dated 19.05.2010 on the subject of classification of rice par-boiling machinery under the Central Excise tariff.  References have been received from trade and field to re-examine the circular consequent to the judgement of the Hon’ble Tribunal in case of M/s Jyoti Sales Corporation [2011(272) E.L.T. 689 (Tri – Del) & 2011 - TIOL – 1498 – CESTAT-DEL].  The circular has since been re-examined.

2.         The classification of rice par-boiling machinery would be guided by Note 2 to Chapter 84 read with Note 3 to Section XVI.  The par-boiling machine and dryer are self-contained machines which are designed to be installed independently and which perform their respective functions independently.  Therefore, though they may be installed in a rice mill to work in conjunction with the milling machinery, the par-boiling machine and dryer do not appear to satisfy the requirements of Section Note 3 to be called composite machines/multi-function machines meriting classification under CETH 8437.  Further, par-boiling machinery does not constitute grain dampening machine as the end result of par-boiling of rice is reduction in the moisture of paddy.   In view of the above, rice par-boiling machine and dryer would merit classification under CETH 8419 as per Note 2 to Chapter 84.

3.         Circular No. 924/14/2010-CX dated 19.5.2010 is rescinded and it is directed that classification of rice par-boiling machine and dryer may be made under CETH 8419.  Necessary action to protect the revenue interest in respect of past clearances may also be taken.

May 8, 2014

Things to know before filing income tax return

10:51 PM 0
Things to know before filing income tax return
We need to file income tax return every year. There are some tips wich you must follow to file income tax returns hassle free.

Correct income tax return form
There are many income tax return forms which also called ITR. These are divided among different types of taxpayers. You must know which is the correct ITR to fill. This will tell you which form you need to fill for income tax return.

 ITR 1: If you have income from salary and pension; income from other sources, such as savings bank account and fixed deposit; and income from one house property.

ITR 2: For individuals or Hindu Undivided Families (HUF) with income from all heads applicable to ITR 1; house property (more than one); income from capital gains; income from other sources; and those who own foreign assets.

ITR 3: For an HUF or individual, who fulfils the criteria for ITR 2 and also is a partner in a firm, but does not carry on a proprietary business or profession.

ITR4: For individuals with income from business or profession.

ITR4S: For individuals with income from presumptive business.

 Give correct personal details
Each year, a large number regarding returns are rejected regarding incorrect personal details. The ITR form requires both your physical along with email address. Ensure a valid and functional email ID is provided inside form. If you are remaining in a rental accommodation or a hostel, avoid mentioning that address for the form. Instead, mention your current permanent address, even if it’s in a smaller town.

If you miss typing in one number or character of one's permanent account number (PAN), the contour cannot be processed. Apart from, you could be levied an excellent of R10, 000 a great incorrect PAN entry, much like income-tax rules. Similarly, you need to be careful about TAN of one's employer, which you will see in your Form 07. If you are expecting a refund, you must mention your bank’s family savings number and the nine-digit MICR variety. Ensure you fill this info correctly or your refund may get delayed unnecessarily.

Include many income
There are certain incomes which might be left out erroneously including income from other resources. Even though long-term money gains and dividends through equity mutual funds and listed securities will not be taxable, they form an element of your income from other sources and it is advisable to give details about these inside form. While only short-term results are taxable for value mutual funds, both short- in addition to long-term gains from debts funds are taxable.

Numerous Form 16s
If you’ve altered jobs in the middle of the financial year, ensure that you just collect Form 16s from both the employers. Many make the error of reporting only the existing employer’s income in their own returns. Since you’ve availed tax benefits from both employers, there could be a superb possibility that you still have additional tax liability during the time of filing returns.

TDS information for interest income
As all banks deduct duty at source for interest accrued on your fixed deposit accounts, it doesn’t mean you won’t assess your duty liability and mention it with your form. In reality, banking companies only deduct 10% duty on interest income, whereas you might be in the higher duty slab of 20% or 30%. Recently, the income-tax department has started reconciliation of TDS facts received from banks along with the interest income reported by individuals within their returns. So, if you don’t give information regarding interest income in your return form, there is a chance that you may receive a notice through tax department. The portal will consider Form 16A details you’ve added and compute the info.

India Switzerland and 45 countries agree on sharing tax information

3:03 PM 0
India Switzerland and 45 countries agree on sharing tax information
Throughout another step in the direction of shedding banking secrecy techniques, 47 nations such as Switzerland and The indian subcontinent, have agreed when automatic exchange of home elevators tax matters.

The endorsement of the 'Declaration on Intelligent Exchange of Facts in Tax Matters' by 47 countries underneath the aegis ofOECD on Tuesday should come as a raise for India and that is stepping up force on Switzerland to share details on supposed illicit funds stashed away by Indians right now there.

The Organisation regarding Economic Cooperation along with Development (OECD), the particular global body of which frames economic insurance policies and conventions towards tax frauds, said the modern declaration commits nations to implement a fresh single global typical on automatic change of information.

The conventional agreed upon by the 47 nations may help clamp down about bank secrecy practices and be sure that they work in the direction of full disclosure of home elevators tax evaders along with financial criminals regarding any national jurisdiction.

"The declaration about automatic exchange involving information in levy matters was endorsed during the OECD's annual Ministerial Local authority or council Meeting in London by all 34 member countries in conjunction with Argentina, Brazil, Tiongkok, Colombia, Costa Rica, The indian subcontinent, Indonesia, Latvia, Lithuania, Malaysia, Saudi Arabic, Singapore and To the south Africa, " OECD said in a statement issued last night.

Switzerland, long perceived as a safe safe place for stashing away untaxed money, is surely an OECD member. "The typical, which was developed for the OECD and recommended by G20 financial ministers last February, obliges countries and jurisdictions for getting all financial information off their financial institutions along with exchange that details automatically with other jurisdictions on an annual basis, " said the affirmation.


Such a process was required between your countries as levy crimes rob countries in their genuine revenues, OECD stated. "Tax fraud along with tax evasion aren't victim less offenses. They deprive authorities of revenues needed to restore growth along with jeopardise citizens trust in the fairness and integrity of the tax system, " OECD Secretary Basic Angel Gurria stated.

May 7, 2014

No prepayment charges on floating rate term loan

6:37 PM 0
No prepayment charges on floating rate term loan
Reserve bank of India issued a direction no. 110 dated 7 May 2014 about no prepayment charges or foreclosure charges on floating rate term loan. Full direction is as under.

 Please refer to our circular DBOD. No. Dir.BC.107/13.03.00/2011-12 dated June 5, 2012 on ‘Home Loans- Levy of Fore-closure Charges/ Pre-payment Penalty’.

2. A reference is invited to Part B of the First Bi-monthly Monetary Policy Statement 2014-15 announced on April 1, 2014 proposing certain measures for consumer protection. It was indicated that in the interest of their consumers, banks should consider allowing their borrowers the possibility of prepaying floating rate term loans without any penalty. Accordingly, it is advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect.
Tags-term loan prepayment charges,prepayment charges in term loan,term loan interest rate and charges,term loan,what is term loan,term loan meanin,term loan repayment schedule,term loan emi calculator

Customer protection against levy of bank charges on minimum balance

6:33 PM 1
Customer protection against levy of bank charges on minimum balance
Reserve bank of India issued a direction no. 109 dated 6 May 2014 about customer protection against levy of non maintenance on minimum balance in inoperative accounts. Full direction is as under.

  Levy of penal charges on non-maintenance of minimum balances in inoperative Accounts

Please refer to Part B of the First Bi-monthly Monetary Policy Statement 2014-15 announced on April 1, 2014, proposing certain measures towards consumer protection such as non-levy of penal charges for non-maintenance of minimum balance in any inoperative accounts.

2. In this connection, a reference is invited to our circular DBOD. Dir. BC. 53/ 13.10.00/ 2002-03 dated December 26, 2002 on ‘Minimum Balance in Savings Bank Accounts’ advising banks to inform customers regarding the requirement of minimum balance in savings bank account and levy of penal charges for non-maintenance of the same at the time of opening the account in a transparent manner.

3. Further, in terms of para 3 of our Circular DBOD. No. Leg. BC.35/09.07.005/2012-13 dated August 10, 2012 on ‘Financial Inclusion- Access to Banking Services - Basic Savings Bank Deposit Accounts’ it was advised to banks that no charge should be levied for non-operation/activation of Basic Savings Bank Deposit Accounts (BSBDAs).

4. It is advised that henceforth banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account.
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Opening of bank account in the name of minors

6:27 PM 0
Opening of bank account in the name of minors
Reserve bank of India issued a note dated 6 May 2014 regarding opening of accounts in the name of minors. In this note RBI issued clarification regarding how to open an account in the name of minors. Full note is as under.
Please refer to our circular DBOD.No.Leg.BC.158/C.90(H)-76 dated December 29, 1976 wherein banks were advised to allow minors’ accounts (fixed and savings deposit accounts) with mothers as guardians to be opened subject to safeguards in allowing operations in such accounts by ensuring that the minors’ accounts opened with guardian are not allowed to be overdrawn and that these always remain in credit. Also, please refer to our circular DBOD.No.Leg.BC.19/C.90(H)-89 dated September 8, 1989 extending the facility, of allowing opening of minors’ account with mothers as guardian, to Recurring Deposits.

2. Further, with a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, banks are advised as under:

A savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian.

Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so desire. Banks may, however, keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to operate the deposit accounts independently. They can also decide, in their own discretion, as to what minimum documents are required for opening of accounts by minors.

On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes.

3. Banks are free to offer additional banking facilities like internet banking, ATM/ debit card, cheque book facility etc., subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.
Tags-minors bank account,bank account of minor,children bank account,bank account of child

May 6, 2014

Borrowing is must to have a high score

4:06 PM 0
Borrowing is must to have a high score
All government and private lenders watch CIBIL report before approving a loan to customers. CIBIL report is the main platform which tells the lenders financial situation, loan repayment history as well as type of loans taken in past. With these items, CIBIL gives the customer score. Score is 300-900 and 80% of the loan approved with a score of 750 or more.
It's tricky to say for sure that you will never require a loan. You could, sooner or later, oblige fast back, inciting you to take an individual advance. You might additionally go in for a joint home credit. A great FICO rating will go far in helping you secure financing on gainful terms. 
Terrible record can set up obstacles to your objective of purchasing a house, financing your training and in a few cases, actually landing a position. Be careful about obligation, however don't shun it out and out. 
From your first Visa to your most recent auto credit, all that you do that includes getting (credit), gets to be a piece of your record. Furthermore to have a financial record, you essentially need to get. Consider the possibility that you aren't monetarily free. Indeed in this way, its workable for you to develop a score. To do this, take your funds into your hands. For one thing, have a ledger in your name. 
Next, have your Mastercard rather than an extra-by means of your spouse's or your folks' cards. Along these  lines, the card is in your name, as will be the month to month explanations. Administration the contribution through your ledger. Likewise, utilize the record to meet portable bills and different installments. This will empower you to secure a track record of tirelessly adjusting your advances and other credit liabilities. 
Obtain sagaciously 
Charge just what you can stand to your Visa. Continuously acquire inside your methods — don't surrender to the promoting endeavors of the charge card-organization, bank, or store! 
You're really great judge of what regularly scheduled installment you can manage; in this way, do a planning practice before you go looking for a credit or an extravagant dress. All the more vitally, verify your bill doesn't surpass that sum. Other than keeping a firm grasp on your using fancies, avoid depleting as far as possible on your Visa, or actually verging on it. 
Maxing out your card is flippant credit conduct, all the more so in the event that you don't have the ability to pay the entire adjust off inside a month. Moneylenders realize that borrowers who max out their cards frequently experience issues reimbursing. Do whatever it takes not to use up more than 50 for every penny of your credit restrict and keep up your obligation underneath 30 for every penny of your charge card limit. 
Convey parity the right way 
While ponying up all required funds consistently has its points of interest — you won't need to pay enthusiasm on your bill — it isn't preposterous to reimburse your levy over a couple of months. Anyway note that extra buys will expand your risk. 
Be that as it may do pay more than the base every month to complete off your offset as fast as could be expected under the circumstances. Abstain from making late installments, which will harm your financial assessment. 
Let records age 
Leave your most established records open since they help build your credit age and assemble great credit. 
A record will stay on your record for a few years after you've shut it, yet after this period, credit agencies will drop it from your credit report, which could affect your FICO rating. 
At long last, remember that not the greater part of your regularly scheduled installments are recorded on your credit report; they won't influence your acknowledge as long as you're paying on time. 
Yet any bill can possibly wind up on your credit report in the event that you get reprobate and the record is sent to an accumulation organization. 
A genuine wrongdoing like an obligation accumulation is difficult to succeed. So don't be hesitant to assume obligation. 
As long as you do this inside your methods, you will have the capacity to develop a good credit score.
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ICICI bank two new saving account for NRIs

3:30 PM 0
ICICI bank two new saving account for NRIs
ICICI Bank, India's largest exclusive sector lender, offers launched two completely new saving account merchandise — NRI Professional and NRI Premia — with regard to NRI customers.

“NRI customers can select from two types regarding regular savings company accounts — NRE in addition to NRO. An NRE savings is used with regard to overseas income in addition to an NRO savings is mainly for income earned throughout India like, for instance, rental income, ” an ICICI Bank assertion said.

Value-added attributes

In addition for you to offering regular savings benefits, the NRI Pro savings offers NRI buyers value-added features like priority service, preferential rates upon money transfers in addition to banking benefits for members of the family based in Indian.

The NRI Premia savings will offer all the use of a NRI Pro savings along with having access to a dedicated relationship manager to keep up the customer's bank needs, and a travel insurance bouquet* which includes air accident coverage of up to Rs 1 crore.

Exclusive privileges

NRI Premia customers may also get to experience special privileges available as 24 X 7 concierge programme that gives them access for you to reservation assistance as well as preferential pricing upon dining, travel reservations, golf courses, spas and special events around the globe.

With these launches, ICICI Bank right now offers three-tiered savings makes up about NRI customers – Standard, Pro and Premia.

“The three-tiered offering have been designed with the objective of catering towards the unique needs of different groups of NRI customers determined by their life period. While the regular savings is the essential product, the NRI Professional and NRI Premia savings accounts are designed to present enhanced convenience in addition to experience, ” the lending company statement said.


Rajiv Sabharwal, Exec Director, ICICI Lender, said, “We work 1. 5 million NRI customers across over 150 countries in addition to process over 5 million NRI deals annually. This experience offers given us insights in to the lifestyle and ambitions of NRIs in addition to our products are made to meet their requires. In this extremely regulated and commoditised merchandise space, features such as concierge service, benefits for members of the family in India in addition to insurance bouquet support us in setting up a distinctive experience for your customer. ”.

May 5, 2014

India soon have Single window system to pay all the bills

5:30 PM 0
India soon have Single window system to pay all the bills
Do you think you're still paying your bills the older way? Still writing cheques along with having these delivered to your biller with regard to clearance? Or standing up in long lines and making income payments? All that will change soon. In the event the new system associated with bill payment mooted with the Reserve Bank associated with India ( RBI) moves on stream, users are able to pay bills – of kinds – with the click of the button or anyplace through other third- celebration vendors.

RBI is along the way of setting way up an Indian Expenses Payment System, a centralised check gateway to make a myriad of bill payments clean. The payments process will be instituted through the GIRO ( govt internal revenue order)based process, where all the billers for example utility payments, income taxes, university fees, examination fees and premiums, among others, come on a common platform that will enable payers to make payments directly for you to billers.

Bill payers routinely have to make a number of bill payments by simply either setting personal online accounts on billers website, making use of cards, visiting charging companies or dropping cheques, which could be cumbersome and time- ingesting. Besides, billers have to setup multiple options for accepting a myriad of payment methods. This makes the item difficult to track bills that usually are paid, both for your billers and this payers.

A committee build by RBI termed the GIRO Advisory Party has given an investigation which proposes to setup two organisations — this Bharat Bill Payment Services plus the Bharat Bill Check Operating Units.
Affirms Pramod Saxena, inventor and managing director, Oxigen Services, the payment solutions corporation: “The new entity can have connectivity to all billers by using a single standardised podium. We don’t must use multiple interfaces. This may increase bill installments online and allow it to become real time, an incredibly small amount right now. ” This entails setting up a centralised national infrastructure, by bringing all the billers and banks on the new bill podium. This new organisation will be created on the lines with the National Payments Firm of India, which usually handles inter- bank transfers.

The new centralised charges system allows all bills to be listed at just one location, where you can go and pay. This is an element of the ongoing effort with the central bank to further improve the payment along with settlement systems as laid out in the Check Systems Vision ( 2012- 15).

RBI wants to develop this system because a great deal of bills are paid through cash or maybe cheques at billers’ locations, while bill payment centres usually are not easily available throughout rural areas. There is also no single web site where all bills could be accessed and paid.

How it may help
At the instant, to pay your bills, you must visit multiple vendors for example insurance or phone companies and a number of agencies. In the revolutionary system, people will gain access to all utilities and all the bill payment managing units. You can make payments to any or all utilities and education institutions around the world through a sole platform.

Paying online on individual billers’ sites is tedious — you will need to remember the website addresses and different passwords. Besides, there is also to provide your money or credit greeting card details to a number of billers, which raise your risk on the internet. In the fresh bill pay support, you can pay your complete bills with just one user name then one password.

Some banks have tied up with individual payment payment gateways and pay many distinct billers through your own personal bank account. Facilities for example Bill Pay, include listed various billers. However, most of these kinds of billers are often telephone, insurance or maybe utility companies. Educational institutions, universities, preservation bills, school service fees, and subscriptions are not an element of the system, especially where charges are paid annually or so.

Paperless along with hassle- free
Further, banks bill with regard to such payment features. Fees vary concerning banks, depending on the number of billers, which could range from a fixed regular fee to adjustable fees.

One mode associated with payments banks encourage is setting up of an electronic clearance system or maybe ECS, where the biller directly debits your money of the costs towards your payment.

Says Saxena: “ Regarding payments of charges in Delhi, you've got only in 2030 outlets. A lot associated with service points can open which have been serviced by us all, accepting cash to bill payments.

One can also pay charges across cities. And also, many other unique variations of billers can arrive online as this system progresses. The majority of the bill installments happen in income, and you can bring all of these into this fresh system. ” The brand new system will also assist you to and the billers to maintain things electronically protected and essentially lessen hassles. While the fact that consumer will be charged is not known, more plus much more types of payments may very well be added. It will likely help keep a brief history of your installments to various billers and tabulate your payments for future reference. Your credit along with payments history will be easily available to you, while it will lessen your paperwork.

May 2, 2014

How to avoid defaults in TDS statements

10:30 PM 0
How to avoid defaults in TDS statements
CPC(TDS) feels glad to bring to you easy tips to avoid Defaults in your TDS statements, by way of adherence to the following basic principles: 
  
· Timely Payment of total taxes deducted/ collected 
· Correct Reporting with regard to PANs, Tax Rate and Challans 
· Complete Reporting for all Deductees 
· Timely filing of TDS Statements 
  
Following are some important facts to be adhered to, while submitting TDS statements, to avoid each type of Default: 
  
· Late Payment Defaults: 

o The taxes deducted must be deposited within the due dates, as prescribed by Rule 30 of the Income Tax Rules 1962. 

o Please also refer to our communication on Important Guidelines for payment towards liability on account of Tax Deducted / Collected at Source 
  
· Short Payment Defaults: 

o All the taxes deducted must be deposited with challan 281 quoting correct TAN, Assessment Year, Minor Head etc. 

o Challan details/BIN details quoted in the statement should be correct. Challans can be validated by using Challan Status Inquiry(CSI) file. Correct details can also be verified at TRACES in “Challan Status” menu under “Statement Status” after login. 

o There should not be any difference in the amounts quoted in “Deducted” and “Deposited” columns of the deductee rows. 

o Challans quoted in the statement must have balance available for consumption against specified deductee rows. Available balance can be verified at TRACES in “View Consumption Details” under “Statements/ Payments” menu after login. 

o Government Deductors need to report Book entry flag as “Y” in challan details. 
  
· Short Deduction Defaults: 

o Taxes must be deducted at correct rates specified in the Act. The Rate table can be accessed at TRACES for correct tax rates. 

o Correct flags (A, B, C, T and Y) must be raised for no deduction/ lower deduction/ higher deduction, as appropriate. 

o The PAN for deductees must be valid and correct. TAN-PAN Master can be downloaded from TRACES and be used to file statement to avoid quoting of incorrect and invalid PANs. 

o Correct and valid 197 Certificates must be specified. E-tutorial can be referred to for the purpose of validation. 

o For 24Q statements, correct flags should be raised for Woman/ Man/ Senior Citizen/ Super Senior Citizen deductees, as may be appropriate. 

o DTAA flag “B” must be raised under section 195 of the Act, at the time of filing 27Q  statements. 
  
· Late Deduction Defaults: 

o Taxes must be deducted at the time of Payment or Credit, whichever is earlier. 

· Late Filing Defaults: 

o Quarterly TDS/TCS statements must be filed within due dates of filing statements as prescribed by Rule 31A of the Income Tax Rules, 1962. The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014. 

o Please refer to our communications CPC (TDS) Reminder for filing of TDS Statements within Due Date and  CPC (TDS) Communication-Circular 07/ 2014 for Late Fee Levy for Government Deductors in this regard. 
  
For any further assistance, please refer to the FAQs and e-tutorials available on TRACES, before reaching out to us on contactus@tdscpc.gov.in or call our toll-free number 1800 103 0344. 

May 1, 2014

New data center for income tax department for tax evasion

10:00 PM 1
New data center for income tax department for tax evasion
To fasten accomplishing this of identifying tax evaders, the Income Tax department has decided to setup a major files centre of such classified information on the lines on the existing two these kinds of centres on e-filing along with TDS information.

The revolutionary office which continues to be named Centralised Processing Cell-Compliance Management (CPC-CM) will have its base inside national capital plus a dedicated workforce, drawn on the department, will guy it.

The CPC-CM is an ambitious project on the Central Board of Direct Taxes (CBDT) aimed at enabling the I-T department to use technical data to evaluate cases of non-compliance along with non- filers of taxes.

The project continues to be planned under the business intelligence project initiated because of the CBDT to allow the taxman shift from physical verification of any taxpayer to a smart approach of data-based keeping track of and checking.

"The aim is usually to basically ensure voluntary compliance by taxpayers with the use of intelligent data for the disposal of the actual I-T department, " a senior official mixed up in project told PTI.

To bolster the actual investigative and enforcement skills on the I-T officials, the CPC-CM will have the entire database on the Permanent Account Quantity (PAN), reports generated by financial snoop agencies and the full assortment of letters and is aware issued to non-compliant taxpayers, their replies and the final action inside new centre.

"The I-T department has recently created two CPCs which have been running successfully. The first is for capture of e-filing data of taxpayers operating out of Bengaluru and the second reason is for hosting Tax Deducted at Supplier (TDS) data throughout Ghaziabad, " the official said.

TDS rates section wise with threshold limit

1:33 PM 0
TDS rates section wise with threshold limit
Tax deduction at souce(TDS) rates as per section wise with threshold limit for financial year 2012-13 and the assessment year 2013-14 are as under.

Nature of Payment Made To Residents
Threshold (Rs.)
Company / Firm / Co-operative Society / Local Authority
Individual / HUF
If No / Invalid PAN
Section - Description
Rate (%)
Rate (%)
Rate (%)

192 - Salaries
-
NA
Average rates as applicable
30
193 - Interest on securities
-
10
10
20
194 - Dividends
-
10
10
20
194A - Interest other than interest on securities - Others
5000
10
10
20
194A - Banks
10000
10
10
20
194B - Winning from Lotteries
10000
30
30
30
194BB - Winnings from Horse Race
5000
30
30
30
194 C - Payment to Contractors
-
-
-
-
- Payment to Contractor - Single Transaction
30000
2
1
20
- Payment to Contractor - Aggregate During the F.Y.
75000
2
1
20
- Contract - Transporter who has provided valid PAN
-
-
-
20
194D - Insurance Commission
20000
10
10
20
194E - Payment to Non-Resident Sportsmen or Sports Association
-
-
-
-
- Applicable up to June 30, 2012
-
10
10
20
- Applicable from July 1, 2012
-
20
20
20
194EE - Payments out of deposits under NSS
2500
20
-
20
194F - Repurchase Units by MFs
1000
20
20
20
194G - Commission - Lottery
1000
10
10
20
194H - Commission / Brokerage
5000
10
10
20
194I - Rent - Land and Building
180000
10
10
20
194I - Rent - Plant / Machinery
180000
2
2
20
194J - Professional Fees
30000
10
10
20
194LA - Immovable Property
100000
10
10
20
194LB - Income by way of interest from infrastructure debt fund (non-resident)
-
5
5
20
Sec 194 LC - Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012)
-
5
5
20
195 - Other Sums
-
Average rates as applicable
-
30
196B - Income from units

10
10
20
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)
-
10
10
20
196D - Income of FIIs from securities
20
20
20
20
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