TDS paid but no quarterly statement filed as yet

TDS paid but no quarterly statement filed as yet

 As per the records of the Centralized Processing Cell (TDS), you have made payments for Tax Deducted, however, no TDS Statements have been filed for any Quarter in FY 2013-14 as yet. In this regard, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

If you are not required to submit the relevant statement, you are requested to submit a declaration by taking appropriate action as suggested under "Action to be taken" in this communication. Otherwise, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

1. Mandatory filing of TDS Statements:

Please refer to the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:

Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:

Statement of deduction of tax under section 192 in Form No. 24Q; 
Statement of deduction of tax under sections 193 to 196D in-
 • Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
 • Form No. 26Q in respect of all other deductees.
It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.


2. Implications of Non/ Late filing of TDS Statements:
For Deductors: In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the IT Act which reads as under:
 • Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues
For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees. They, therefore, will not be able to claim the credit for tax already deducted from the payments made to them. Please note that TDS Certificates will not be available until the TDS Statements are duly filed.

3. Actions to be taken:
Please file the relevant TDS Statement without any further delay.
If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to "Statements/ Payments" menu and submit details under "Declaration for Non-Filing of Statements".
Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.
For any 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.
No TDS statement filed despite collecting deduction for FY 2013-14

No TDS statement filed despite collecting deduction for FY 2013-14

Centralized Processing Cell (TDS) has observed from its records that you have not filed TDS Statements for Financial Year 2013-14, despite collecting lower deduction 197 Certificates from your deductees.

Please note that the obligation to report each transaction in the relevant quarter, including, where tax has been deducted at lower rates, falls on the deductor. Also, Rule 31A(4)(v) of Income Tax Rules specify to furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee. 

About Certificate u/s 197:

Assessing Officer issues a certificate for lower 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 total income of the deductee justifies deduction of tax at a lower 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 for reporting deduction of tax against certificate 197:
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 being filed.
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.
Please ensure that the Certificate Number is mentioned in the Deductee detail of the statement. (For F.Y.2013-14 Onwards)

It is therefore, suggested to file your TDS Statements and take appropriate action with respect to the above while filing.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.
TDS statement filed in FY 2012-13 but not in FY 2013-14

TDS statement filed in FY 2012-13 but not in FY 2013-14

As per the records of the Centralized Processing Cell (TDS), you have filed TDS Statements in FY 2012-13, however, no TDS Statements have been filed for any Quarter in FY 2013-14 as yet. In this regard, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

If you are not required to submit the relevant statement, you are requested to submit a declaration by taking appropriate action as suggested under "Action to be taken" in this communication. Otherwise, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

1. Mandatory filing of TDS Statements:
Please refer to the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:

Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:

Statement of deduction of tax under section 192 in Form No. 24Q;
Statement of deduction of tax under sections 193 to 196D in-
  • Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
  • Form No. 26Q in respect of all other deductees.
It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.


2. Implications of Non/ Late filing of TDS Statements:
For Deductors: In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the IT Act which reads as under:
  • Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues
For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees. They, therefore, will not be able to claim the credit for tax already deducted from the payments made to them. Please note that TDS Certificates will not be available until the TDS Statements are duly filed.

3. Actions to be taken:
Please file the relevant TDS Statement without any further delay.
If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to "Statements/ Payments" menu and submit details under "Declaration for Non-Filing of Statements".
Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.
For any 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.
EPFO retain 8.75% interest on PF for FY 2015

EPFO retain 8.75% interest on PF for FY 2015

The Employees' Provident Fund Organisation (EPFO) has decided to retain interest payment on provident fund deposits for 2014-15 at 8.75 per cent.

"It has been decided to pay 8.75 per cent interest in the current fiscal," Central Provident Fund Commissioner (CPFC) KK Jalan told PTI after the meeting of the Central Board of Trustees (CBT), the apex decision making body of EPFO.

The retirement fund body has about 5 crore subscribers and the decision will have a bearing on their retirement fund.

The decision to retain the interest rate on the provident fund deposits at last year's level was taken despite some protest by the trade union members of the CBT, sources said.

The final notification for payment of the interest rate for the current financial year will be issued by the Finance Ministry later.

EPFO had provided 8.75 per cent rate of interest on PF deposits for 2013-14 and 8.5 per cent on deposits for 2012-13.
Determination of rate of exchange for service tax

Determination of rate of exchange for service tax

Service tax department issued a notification no. 19/2014 dated 25 August 2014 about determination of rate of exchange for service tax. Full notification is as under.

G.S.R..... (E). – In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:—

1. (1) These rules may be called the Service Tax (Second Amendment) Rules, 2014. 
 (2) They shall come into force on the 1st day of October, 2014. 
2. In the Service Tax Rules, 1994, after rule 10, the following rules shall be inserted, namely:-

―11. Determination of rate of exchange.– The rate of exchange for determination of value of taxable service shall be the applicable rate of exchange as per the generally accepted accounting principles on the date when point of taxation arises in terms of the Point of Taxation Rules, 2011.

12. Power to issue supplementary instructions.– The Board or the Chief Commissioners of Central Excise may issue instructions for any incidental or supplemental matters for the implementation of the provisions of the Act.‖.

Points to remember about income tax clubbing provision

Points to remember about income tax clubbing provision

The actual rule says one should pay taxes around the income earned. What taxpayers almost never know is that ‘income’ could be expanded to contain others’ income also, under certain situation.

A few generations ago, taxpayers helpful to transfer assets or perhaps income to close up relatives. By accomplishing this, they were able to avoid higher levy brackets and, therefore, reduce their levy outgo. To decrease such practices, provisions were incorporated inside Income Tax Act to incorporate income arising to a person (the lawful, but not the actual, owner of such income) inside income of a different (the real owner) even though computing the tax liability from the latter.

Any income developing directly or indirectly towards the spouse of someone from assets transferred to the spouse are going to be clubbed with the income from the individual. However, it will have no clubbing when the asset is transferred to the spouse for adequate consideration or perhaps under an agreement to reside apart. Also, any remuneration arising towards the spouse of someone from a concern through which such individual features substantial interest would also attract clubbing. On the other hand, where income will be solely attributable to the application of his or your ex technical or professional knowledge and practical knowledge, clubbing provisions would not apply.

Clubbing provisions do not apply if a loan is granted towards the spouse. Suppose X provides loan of R20 lakh to Y. With that loan, Y purchases a residence and earns local rental income. Here, clubbing won't apply since the loan is not the transfer associated with an asset.

Taxmen have rocked the loophole by means of extending clubbing provisions towards the son’s wife additionally. It is provided that any income developing directly or not directly to son’s better half, as a response to transfer of resource otherwise than for adequate consideration, will be the income associated with transferor. It is pertinent to remember that, the marriage of husband-wife, father-in-law/mother-in-law and daughter-in-law must subsist both during transfer of asset and during accrual of earnings. Therefore, if assets are usually transferred before marriage towards the would-be daughter-in-law for inadequate consideration, there will be no clubbing despite marriage.

Now, let’s examine the income of an minor child. All income arising to a minor child (not struggling with any specified disability) would also be clubbed inside income of this parent (whose entire income is greater) besides when income is earned through the minor child on account of any manual work done by them or any action involving application associated with his skill, skill or specialised know-how and experience. On the other hand, where the marital life of his parents does not subsist, it will be contained in the income of that will parent who retains the minor child in the last year. An exemption associated with R1, 500 per child each year or income earned through the child, whichever is gloomier is, however, obtainable.

While there will always be a ball and also chain attached such as clubbing, note that clubbing is not always unwanted. What the law states also provides that will income includes bad income, i. at the., loss. If income can be clubbed, so could be the losses, which would lower the levy burden.
How to close TDS payment defaults using online correction facility

How to close TDS payment defaults using online correction facility

As you may be aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars through which TDS payments have been made. The TDS forms prescribe quoting of such challans and the underlying deductee transactions corresponding to such challans. 

However, it is observed that:
At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
Though CPC (TDS) makes best efforts to match such challans, however, they may remain unmatched leading to "Short Payment" demand.
The above results into issuance of notices by the field officers.


To make the resolution process non-intrusive, CPC (TDS) proposes a new change while submitting request for download of the Consolidated (Conso) file for a particular quarter. If there is a "Short Payment defaults" on account of unmatched challans for the relevant quarter, the deductor would be provided with online view of all available unconsumed challans, which can be tagged with deductees, to close the above default.

Following are key information to be noted in this regard:
CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through online correction (without digital signature).
In case there is no available challan for consumption, the deductor is required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC(TDS) system after around 3-4 days of deposit.
The Online Correction facility of TRACES needs to be used for closure of the Short Payment default.
The user will not be able to download Conso file for the relevant TDS statement on closure of the above default.
Once the challan is suitably tagged, CPC(TDS) shall suo moto reprocess the cases thereby reducing the Short Payment default by equivalent amount.

What Actions to be taken: 
During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.
Details of defaults will be provided during Online Correction process.
In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down list. You can refer to our e-tutorial for necessary help.
Online Challan Corrections:

A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
Unmatched challans can be corrected and tagged to Deductee rows in the statement.
The corrections in TDS statements can be raised even without Digital Signature.
Correct KYC information needs to be submitted for the purpose of validation.
All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.
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.

Income tax forms 3CA 3CD in java format for AY 2014-15

The income tax department issued audit forms 3CA 3CD in java format for analysis year 2014-15 which will work both online and offline mode.
3CA 3CD forms
Audit report under section 44AB of income tax act 1961 in a case where the accounts of business or profession of a person have been audited under any other law.

Instructions.
  1. Attachment cannot exceed 50MB.
  2. Attachment must be in pdf or zip format.
  3. Attachment should be scanned with minimum 300dpi.
  4. wherever there is a requirement in the form to submit a signed copy of documents by an assessee/CA as an attachment, upload the scanned copy of same documents.
Checklist of documents and pre-requisites
  1. A copy of last year's tax return.
  2. Bank statements.
  3. TDS certificates.
  4. Saving certificates/Deduction.
  5. Interest statements showing interest paid to you throughout the year.
  6. Balance sheet, P&L accounts and audit report wherever applicable.
 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 FORM.bat
Or
Run from command prompt by executing "FORM.bat" (ensure that current working directory has the extracted files)

-----------------------------------------------------------
To run in LINUX
-----------------------------------------------------------
Change the FORM.sh file's permission, provide execution permission by executing the following command
> chmod 755 FORM.sh
run using the command "sh FORM.sh" or ./FORM.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 FORM15CA then execute the following command
   
D:\Utility>"C:\Program Files (x86)\Java\jre7\bin\java" -jar FORM15CA_PR7.jar
Download forms 3ca 3cd in java format for AY 2014-15
Tags-form 3ca,form 3cd,form 3ca 3cd in java format,form 3ca in excel format,audit form 3ca 3cd download,download form 3ca 3cd

Income tax forms 3CB-3CD in java based utility AY 2014-15

The Income tax department issued Forms 3CB-3CD in java based utility which will work both offline and online mode.

3CB-3CD
Audit report under section 44AB of income tax act 1961 in the case of a person referred to in clause (b) of sub rule(1) of rule 6G.

Instructions

  1. Attachment cannot exceed 50MB.
  2. Attachment must be in pdf or zip format.
  3. Attachment should be scanned with minimum 300dpi.
  4. wherever there is a requirement in the form to submit a signed copy of documents by an assessee/CA as an attachment, upload the scanned copy of same documents.
Checklist of documents and pre-requisites
  1. A copy of last year's tax return.
  2. Bank statements.
  3. TDS certificates.
  4. Saving certificates/Deduction.
  5. Interest statements showing interest paid to you throughout the year.
  6. Balance sheet, P&L accounts and audit report wherever applicable.
How to run this application

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 FORM.bat
Or
Run from command prompt by executing "FORM.bat" (ensure that current working directory has the extracted files)

-----------------------------------------------------------
To run in LINUX
-----------------------------------------------------------
Change the FORM.sh file's permission, provide execution permission by executing the following command
> chmod 755 FORM.sh
run using the command "sh FORM.sh" or ./FORM.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 FORM15CA then execute the following command
   
D:\Utility>"C:\Program Files (x86)\Java\jre7\bin\java" -jar FORM15CA_PR7.jar


Download Forms 3CB-3CD in java format for ay 2014-15
Tags- forms 3CB-3CD.forms 3CB-3CD in java format,java forms 3CB-3CD,forms 3CB-3CD ay 2014-15,form 3cb,form 3cb applicability,form 3cb in excel format,form 3cb 3cd,form 3cb 3cd in word format,form 3cb 3cd in word format.
New rules of loan against shares

New rules of loan against shares

At present, lending against shares carried out by NBFCs is not subject to specific instructions apart from the general prudential regulation applicable to all NBFCs. Lending against shares could be in the normal course where shares are accepted as collateral or as part of their capital market operations. NBFCs lend either by way of pledge of shares in their favour, transfer of shares or by obtaining a power of attorney on the demat accounts of borrowers. Irrespective of the manner and purpose for which money is lent against shares, default by borrowers can and has in the past lead to offloading of shares in the market by the NBFCs thereby creating avoidable volatility in the market. Certain other associated areas of concern relate to absence of adequate prior information to the stock exchanges on the shares held as pledge by NBFCs, probable overheating of the market, over-exposure by NBFCs to certain stocks and overleveraging of borrowers. Further, while NBFCs in general are understood to have in place their own internal controls with regard to lending against shares including a loan to value (LTV) ratio, there are anecdotal evidences of volatility in the capital market being the result of offloading of shares by NBFCs. It is, therefore, found necessary to introduce a minimum set of guidelines on lending against shares while at the same time ensuring that these do not result in unnecessary constraints to the requirements of genuine borrowers.
2. Accordingly, NBFCs lending against collateral of shares shall, with effect from the date of this circular:
  1. Maintain an LTV ratio of 50%; and
  2. accept only Group 1 securities (specified in SMD/ Policy/ Cir - 9/ 2003 dated March 11, 2003 as amended from time to time, issued by SEBI) as collateral for loans of value more than `. 5 lakh, subject to review by the Bank.
3. All NBFCs with asset size of `.100 crore and above shall report on-line to stock exchanges, information on the shares pledged in their favour, by borrowers for availing loans. The infrastructure for on-line reporting to the stock exchanges has been put in place. The exchanges may be approached for creation of user IDs. The web links for
the respective exchanges are provided below:
BSE : http://nbfc.bseindia.com
NSE: https://www.connect2nse.com/LISTING/
4. The format for reporting as desired by SEBI is given in the Annex.
5. The following officials from the Stock Exchanges may be contacted for any queries on reporting of the pledge data:
BSE :a) Mr. Ravindra Shetty, email: ravindran.shetty@bseindia.com,Ph:- 022-22728792;
b) Mr. Rajesh Gandhi, email: rajesh.gandhi@bseindia.com
Ph: 022-22728281
NSE ::a) Mr. Samir Rajdev, email: srajdev@nse.co.in, Ph: 022-26598346
b) Ms. Saritha Menon, snandialath@nse.co.in, Ph: 022-26598458
6. Notification No. DNBS(PD) 276/ PCGM(KKV)/ 2014-15 dated August 21, 2014 amending Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 and Notification No. DNBS(PD) 277/ PCGM(KKV)/ 2014-15 dated August 21, 2014 amending Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 issued in this regard by the Reserve Bank of India are enclosed for meticulous compliance.
Yours faithfully,
(K.K. Vohra)
Principal Chief General Manager

Annex
Data on Pledged Securities
Name of the NBFC Lender
PAN
Date of Reporting
Share holding Information
Name of the Company
ISIN
No of Shares held against loans
Type of the Borrower (Promoter/Non Promoter)
Name of the Borrower
PAN of the Borrower

RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005
DNBS(PD).276/ PCGM(KKV)-2014 dated August 21, 2014
The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend the Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 (hereinafter referred to as ‘the Directions’), (Notification No.DNBS.192/DG(VL)-2007 dated February 22, 2007), in exercise of the powers conferred by sections 45JA of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, hereby makes the following amendments in the Directions with immediate effect namely : –
Insertion of new paragraph 17 F - After paragraph 17 E, the following paragraph shall be inserted :-
17 F. Loans against security of shares – All NBFCs with asset size of `.100 crore and above shall,
  1. maintain a Loan to Value (LTV) ratio of 50% for loans granted against the collateral of shares, and
  2. accept only Group 1 securities (specified in SMD/ Policy/ Cir - 9/ 2003 dated March 11, 2003 as amended from time to time, issued by SEBI) as collateral for loans of value more than `. 5 lakh, subject to review by the Bank.
(K.K.Vohra)
Principal Chief General Manager

RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005
DNBS(PD) 277/ PCGM(KKV)/ 2014-15 dated August 21, 2014
The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 (hereinafter referred to as ‘the Directions’) (Notification No. DNBS.193/DG(VL)-2007 dated February 22, 2007), in exercise of the powers conferred by section 45JA of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, hereby makes the following amendments in the Directions with immediate effect namely : –
Insertion of new paragraph 17 F - After paragraph 17E, the following paragraph shall be inserted :-
17F. Loans against security of shares – All NBFCs with asset size of `.100 crore and above shall,
  1. maintain a Loan to Value (LTV) ratio of 50% for loans granted against the collateral of shares, and
  2. accept only Group 1 securities (specified in SMD/ Policy/ Cir - 9/ 2003 dated March 11, 2003 as amended from time to time, issued by SEBI) as collateral for loans of value more than `. 5 lakh, subject to review by the Bank.
Last date for furnishing audit report u/s 44AB has extended to 30 November 2014

Last date for furnishing audit report u/s 44AB has extended to 30 November 2014

Income tax department has extended the last date of furnishing audit report from 30 September 2014 to 30 November 2014 for assessment year 2014-15. Income tax department issued an order dated 20 August 2014 which is as under.

Order Under Section 119 of the Income-tax Act, 1961
In exercise of power conferred by section 119 of the Income-tax Act (‘the Act’), the Central Board of Direct Taxes (CBDT) hereby extends the due date for obtaining and furnishing of the report of audit under section 44AB of the Act for Assessment Year 2014-15 in case of assessees who are not required to furnish report under section 92E of the Act from 30th day of September, 2014 to 30th November, 2014.

2. It is further clarified that the tax audit report under section 44AB of the Act filed during the period from 1st April, 2014 to 24th July, 2014 in the pre-revised Forms shall be treated as valid tax audit report furnished under section 44AB of the Act.

Raising flag B in TDS statements against Form 15G/H for FY 2013-14

Raising flag B in TDS statements against Form 15G/H for FY 2013-14

 As you may be aware that the depositors submit form 15G/H to the bank for no deduction of tax to be made on the interest payments made to them.

However , it has been observed in your case that you have not raised Flag 'B'(No deduction on account of 15G/H) even against a single transaction as reported in the TDS Statement(s)(Form 26Q) submitted for various quarters of Financial Year 2013-14. 

It is highly improbable that not even a single depositor has submitted form 15G/H to you for non-deduction of tax on the interest payments. Accordingly, you are advised to take the following action:

Actions to be taken:
Check the details of 15G/H cases from your source data.

Download the Conso File from our portal. Please use the e-tutorial for necessary help.

Prepare the correction statement with appropriate changes. Please ensure that the TDS Deposited amount equals the TDS Deducted amount in your correction statement.

Submit the Correction Statement at TIN Facilitation Centre.

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.
Quoting AIN details in TDS statements

Quoting AIN details in TDS statements

As per the records of the Centralized Processing Cell (TDS), it has been observed that the Accounts Office Identification Number (AIN) has not been mentioned in the TDS statements submitted by you. 

What is AIN and its relevance :

AIN is a unique seven digit number allotted by NSDL, to the Pay and Accounts Office (PAO), District Treasury Office (DTO) or Cheque Drawing and Disbursing Office (CDDO). It is mandatory for the PAO / CDDO / DTO to have an AIN.

Why is AIN important to be quoted in TDS Statement:

Quoting of AIN in TDS Statement facilitates complete reporting and results into correct mapping of the TAN with the AIN.
The AIN details in Form 24G, filed by the PAO / CDDO / DTO forms part of G-OLTAS database. CPC (TDS) processes TDS statements on the basis of information contained in G-OLTAS.
In view of the above, you are requested to provide AIN details in point 2(b) of the Forms 24Q and 26Q of the TDS Statements.

CPC (TDS) is committed to provide best possible services to you.
Free ATM transaction of other bank reduced to three in 6 Metros

Free ATM transaction of other bank reduced to three in 6 Metros

The number of Automated Teller Machines (ATMs), which stood at a little over 27,000 as at end-March 2007, has increased to over 1.6 lakh across the country by end-March 2014. During the same period, the Point-of-Sale (POS) infrastructure has increased from 3.2 lakh to 10.65 lakh terminals. The ATMs are being gradually leveraged by banks to deliver other financial and non-financial products to their customers. Meanwhile, White Label ATMs (WLAs) have also been introduced in the country with the objective of increasing the ATM density and also building the rural and semi-urban ATM infrastructure. However, despite this growth, the deployment of both ATMs as well as POS infrastructure in the country is lop-sided with a significantly large presence in metropolitan and urban areas as compared to rural and semi-urban areas.

2. Recently, a few banks and the Indian Banks’ Association (IBA) had approached the Reserve Bank seeking changes in the extant instructions regarding free transactions at other banks’ ATMs. Referring to the growing cost of ATM deployment and maintenance incurred by banks on the one hand as well as the rising interchange out-go due to these free transactions, the IBA had sought the removal of free transactions at other banks’ ATMs at metro centres and other large townships in the country.

3. In this regard, we draw attention to our circular DPSS No. 1405/02.10.02/2007-2008 dated March 10, 2008 as well as IBA circular No. CE.RB-1/atm/1284 dated August 31, 2009 on levy of service charges for use of ATMs. Reference is also invited to our circular DPSS.PD.No. 2632/02.10.002/2010-2011 dated May 27, 2011 which, inter alia, state that five free transactions per month (inclusive of financial and non-financial transactions) is permitted at other bank ATMs.

4. After an analysis of the ATM deployment in the country as well as availability of alternate means of electronic payment infrastructure and access thereto, it has been decided to revise the existing directions as under:

Taking into account the high density of ATMs, bank branches and alternate modes of payment available to the customers, the number of mandatory free ATM transactions for savings bank account customers at other banks’ ATMs is reduced from the present five to three transactions per month (inclusive of both financial and non-financial transactions) for transactions done at the ATMs located in the six metro centres, viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. Nothing, however, precludes a bank from offering more than three free transactions at other bank ATMs to its account holders if it so desires.

This reduction will, however, not apply to small / no frills / Basic Savings Bank Deposit account holders who will continue to enjoy five free transactions, as hitherto.

At other locations i.e. other than the six metro centres mentioned above, the present facility of five free transactions for savings bank account customers shall remain unchanged.

ATM installing banks are advised to indicate clearly at each ATM location that the ATM is situated in a ‘metro’ or ‘non-metro’ location using appropriate means (message displayed on the ATM / sticker / poster, etc.) to enable the customer to identify the status of the ATM in relation to availability of number of free transactions. Further, banks are advised to ensure the “ATM location identifiers” in their ATM database is accurate and kept up-to-date at all times so as to minimise disputes, if any, in the matter.

The issuing banks are also advised to put in place proper mechanisms to track such transactions and ensure that no customer inconvenience or complaints arise on this account.

The provisions related to levy of charges for use of own-bank ATMs, vide our circular dated March 10, 2008, has also been reviewed. Accordingly, banks are advised that at least five free transactions (inclusive of financial and non financial transactions) per month should be permitted to the savings bank account customers for use of own bank ATMs at all locations. Beyond this, banks may put in place appropriate Board approved policy relating to charges for customers for use of own bank ATMs.

The ceiling / cap on customer charges of Rs.20/- per transaction (plus service tax, if any) will be applicable.

Banks are advised to ensure that the charges structure on ATM transactions, as per their Board approved policy, is informed to the customer in a fair and transparent manner.

Further, banks are advised to put in place suitable mechanism for cautioning / advising / alerting the customers about the number of free transactions (OFF-US as well as ON-US) already utilised during the month by the customer and the possibility that charges may be levied as per the banks’ policy on charges.

5. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).

6. This directive shall come into effect from November 01, 2014.

7. Please acknowledge receipt.

89(1) arrears relief calculator for FY 2000-1 to 2014-15

Section 89(1) of income tax act gives relief in case of salary in arrears or salary received in advance. Sixth pay commission left a high part of salart in arrears and income tax will be charged at higher rates. So it's very necessary to get the benefit of section 89(1) relief.

This is the section 89(1) arrears relief calculator which works for financial year 2000-01 to 2014-15 which is developed by my friend Mr. Pranab Banerjee and he is happy to share it with taxalertindia.com

There are many features of this calculator which are as follows.


  1. This is an excel based calculator.
  2. Very easy to use and accurate results
  3. Works for FY 2000-01 to 2014-15
  4. Colorful presentation.
  5. Automatically prepare annexure 1 10E
  6. Automatically prepare Form 10E.



Download section 89(1) relief calculator for fy 2014-15
Tags-89(1) relief calculator,89(1) relief calculator excel,89(1) relief calculator xls,89(1) relief calculator fy 2014-15,89(1) relief calculator fy 2013-14,89(1) relief calculator fy 2012-13,89(1) relief calculator latest,89(1) relief calculator download,download 89(1) relief calculator,89(1) relief calculator free download,free download 89(1) relief calculator
Online correction facility for TDS closures of short payment defaults

Online correction facility for TDS closures of short payment defaults

The Centralized Processing Cell (TDS), in its endeavour to enforce TDS Compliance, is shortly mandating closure of “Short Payment defaults” in the quarterly TDS statements due to Unmatched Challans, before the Conso files can be downloaded from TRACES for the relevant statements. Following are key information to be noted in this regard: 

CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through online correction (without digital signature). 

· In case there is no available challan for consumption, the deductor is required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC(TDS) system after around 3-4 days of deposit. 

· CPC(TDS) mandates to close the above default by Matching or Payment of challans. 

· The user will not be able to download Conso file for the relevant TDS statement until the above default is closed. 

· The Online Correction facility of TRACES needs to be used for closure of the Short Payment default. 

· User will subsequently be able to download the Conso file for relevant period only after the default is closed. 

Why the Short Payment needs to be paid: 
CPC (TDS) intends to enforce compliance towards payment of taxes to the Government.

In accordance with provisions of section 201(1) of the Act, where any person, including the principal officer of a company, who is required to deduct any sum in accordance with the provisions of the Act; does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall be deemed to be an assessee in default in respect of such tax.
As per the provisions of section 220 of the Act,

Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.

If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.

If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.

Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.

Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

What Actions to be taken:
· During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.

· Details of defaults will be provided during Online Correction process.

· In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.

· Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down list. You can refer to our e-tutorial for necessary help.

Online Challan Corrections:
A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.

Unmatched challans can be corrected and tagged to Deductee rows in the statement.

The corrections in TDS statements can be raised even without Digital Signature.

Correct KYC information needs to be submitted for the purpose of validation.

All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.

You are requested to take appropriate actions to avoid any inconvenience in absence of Conso files for carrying out any other corrections to your TDS statements. 

For any assistance, you can 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. 
Loved Our Blog Posts? Subscribe To Get Updates Directly To Your Inbox
Get This Widget