Income tax extends due date for filing income tax to 30 November

Income tax extends due date for filing income tax to 30 November

The Income tax department extended due date for filing income tax return from 30 September 2014 to 30 November 2014 to the assessee who required to furnish audit report u/s 44AB of income tax act. An order issued dated 26 September 2014 in this regard. Full order is as under.

Section 44AB of the Income-tax Act, 1961 („the Act‟) read with rule 6G of the Income-tax Rules, 1962 („the Rules‟) requires certain persons to file tax audit report in Form No.3CA/Form No.3CB along with prescribed particulars in Form No.3CD. Vide Notification No. 33/2014 dated 25th July, 2014, the forms for filing tax audit report have been revised. As per section 44AB of the Act, the tax audit reporthas to be obtained and furnished electronically by 30th November of the Assessment 
year in case of an assessee who is required to furnish report under section 92E of the Act and 30th September of the Assessment year in case of other assessees. 

2. In view of the representations received by the Central Board of Direct Taxes („the Board‟), the due date for obtaining and furnishing of tax audit report under section 44AB of the Act for assessment year 2014-15 in respect of assessees who are not required to furnish report under section 92E of the Act has been extended from 30th September, 2014 to 30th November, 2014 vide Order No.133/24/2014-TPL dated 20th August, 2014 in exercise of power of the Board under section 119 of the Act. It has been further clarified that the tax audit report filed during the period from 
01.04.2014 to 24.07.2014 in the pre-revised forms shall be treated as valid tax audit report under section 44AB.

3. After the extension of the due date for obtaining and furnishing of tax audit report under section 44AB of the Act, a number of representations have been received in the Board requesting for extension of due date for furnishing of return of income for the assessees who are required to obtain and furnish tax audit report under section 44AB of the Act and for whom the due date for furnishing return of income under section 139(1) of the Act is 30th September, 2014. Writ petitions have also been filed in various High Courts for directing the Board to extend the due date for furnishing of 
return of income from 30th September, 2014 to 30th November, 2014 in conformity with the extension of the due date for filing of tax audit report. 

 4. In the High Court of Delhi, a writ petition No.5990/2014 has been filed on this issue. However, before the pronouncement of judgement, the petitioner withdrew the writ petition on 23rd September, 2014. The High Court of Madras passed interim order on 24.09.2014 in writ petitions No.25443 and 26306 to 26310 of 2014 and directed the Board to consider the request of the assessees in general and consider the extension of time for furnishing the return of income, in tune with the order passed by 
the Board in F. No.133/24/2014-TPL dated 20.08.2014. It has been reported that the High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh disposed the writ petition No.28159 and 28627 of 2014 with a direction to the Board to dispose of the representation of the petitioners. The High Court of Bombay disposed of writ petition No.2492 of 2014 vide order dated 25.09.2014 and directed the Board to look into the practical difficulties of the petitioners and take a just and proper decision in this matter.

5. The Gujarat High Court allowed Special Civil Application No.12656 of 2014 with Special Civil Application No.12571 of 2014 and vide judgement dated 22.09.2014 directed the Board to modify the order under section 119 of the Act dated 20.08.2014 by extending the due date for furnishing the return of income to 30thNovember, 2014. It has also been further stated in the said order that it would be open for the Board to qualify such relaxation by extending the due date for all purposes, except for the purpose of Explanation 1 to section 234A of the Act. 

6. In compliance to the judgement of High Court of Gujarat and after considering the representations made for extension of due date for furnishing of return of income in compliance with the directions of the other High Courts, the Board, in exercise of power conferred by section 119 of the Act, hereby extends, subject to para 7 below, the `due-date‟ for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the assessment year 2014-15 for all purposes of the Act, in 
case of an assessee, who, 

(i) is required to file his return of income by 30th September, 2014 as per clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, 1961; and 

(ii) is also required to get his accounts audited under section 44AB of the Act or is a working partner of a firm whose accounts are required to be audited under section 44AB of the Act. 

7. There shall be no extension of the “due date” for the purposes of Explanation1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act. 

 8. For removal of doubt, it is clarified that for an assessee (other than working partner of a firm which is required to obtain and furnish tax audit report), who is required to file its return of income by 30th September, 2014 but not required to obtain and furnish tax audit report under section 44AB, the due date for furnishing of return of income for assessment year 2014-15 remains as 30th September, 2014.
Nil TDS deposited FY 2014- TRACES follow up

Nil TDS deposited FY 2014- TRACES follow up

 As per the records of the Centralized Processing Cell (TDS), it has been observed that there is "No Tax Deposited" during the period April 1 to August 31, 2014 while tax has been deposited in the corresponding period in Financial Year 2013.

It may be possible that either the Tax may not have been deducted at source or the Tax deducted may not have been deposited, within stipulated time. In such case, this may lead to Short / Late Deduction and / or Short / Late Payment Defaults.

Please make note of the following important information :

• Please note the provisions of section 200(1) of the Income Tax Act, 1961; in this regard: 

Duty of Person deducting Tax:

Any person deducting any sum in accordance with [the foregoing provisions of this Chapter] shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs.

Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs.

Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time,[prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority or the person authorized by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.]

 • If the tax is not paid in accordance with the provisions of the Act, it may attract penal Interest u/s 201(1A) and 220(2) of the Act.

 • Any such interest paid above will not be considered as deductible expense under the provision of section 43(ia) of the Act.

Actions to be taken:

 • If any amount needs to be deducted and/ or deposited, immediate action may be taken at the earliest.

 • Please inform us with the reason for "No Tax Deposited" at info@tdscpc.gov.in.
Substantial reduction in TDS deposited FY 2014- TRACES follow up

Substantial reduction in TDS deposited FY 2014- TRACES follow up

As per the records of the Centralized Processing Cell (TDS), it has been observed that there is substantial reduction in the amount of Tax Deposited during the period April 1 to August 31, 2014 as compared with the corresponding period in Financial Year 2013.

It may be possible that either the Tax may not have been deducted at source at appropriate rates or the Tax deducted may not have been deposited, within stipulated time. In such case, this may lead to Short / Late Deduction and /or Short / Late Payment Defaults.

Please make note of the following important information :

• Please note the provisions of section 200(1) of the Income Tax Act, 1961; in this regard:

Duty of Person deducting Tax:

Any person deducting any sum in accordance with [the foregoing provisions of this Chapter] shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs.

Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs.

Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time,[prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority or the person authorized by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.]

• If the tax is not paid in accordance with the provisions of the Act, it may attract penal Interest u/s 201(1A) and 220(2) of the Act.

 • Any such interest paid above will not be considered as deductible expense under the provision of section 43(ia) of the Act.

Actions to be taken:

 • If any amount needs to be deducted and/ or deposited, immediate action may be taken at the earliest.

 • Please inform us with the reason for "No Tax Deposited" at info@tdscpc.gov.in.
Latest FVU version 4.4 e-TDS software free download

Latest FVU version 4.4 e-TDS software free download

Tin.nsdl has launched latest FVU version 4.4 on 23 September 2014. This is the latest version of FVU 4.4  and FVU 4.4 is mandatory for statements pertain to financial year 2010-11 and onwards.

There are many new features added in this fvu 4.4 which are as under.

1- Lower/ Non-deduction Certificate number issued by Assessing Officer (in deductee details): Length of field “Certificate number issued by the Assessing Officer u/s 197 for non-deduction/lower deduction” under deductee details (i.e. in Annexure I) has been restricted to 10 digits. Certificate number to be quoted only in case of lower deduction/no deduction. This validation is applicable to regular and correction (C3 & C9)statements pertaining to FY 2013-14 and onwards.

2- Amount paid/ credited (in deductee details): Value in field “Amount paid/ Credited” to the deductee in case of Form no. 24Q should be less than or equal to 999999999.00. This validation is applicable to regular and correction (C3 & C9) statements pertaining to all FYs.

3- Total Taxable income (in salary details – Annexure II): Value in field “Total Taxable Income” to the deductee in case of Form no. 24Q-Q4 should be less than or equal to 999999999.00. This validation is applicable to regular and C4 correction statements pertaining to all FYs.

4- Deductee reference number and Employee serial number (in deductee details): It is mandatory to quote in the field “Deductee reference no.” (In case of Form no. 26Q) and “Employee serial no.” (In case of Form no. 24Q), where PAN of the deductee is invalid. This validation is applicable to regular and correction (C3 & C9) statements pertaining to all FYs.

5- Total tax deducted amount (in deductee details): In case of Form no. 24Q, value quoted in field “Total Tax deducted amount” should be less than or equal to value quoted in field “Amount paid/ credited” under deductee details. This validation is applicable to regular and correction (C3 & C9) statements pertaining to all FYs.

6- Accounts Office Identification Number (AIN): It is mandatory to quote the AIN in case of Form no. 24Q and 26Q for deductor category “Central Government” & “State Government”. This validation is applicable to regular and correction (C1 & C2, C3 (if deductor details are updated)) statements pertaining to FY 2013-14 onwards.

7- Collection code “J” (Sale of certain Minerals) and “K” (Cash case of Bullion and Jewellary): Collection code “J” and “K” is applicable only for TCS (Form no. 27EQ) regular and C9 correction statements pertaining to Q2 of FY 2012-13 onwards.

8- Remarks for higher deduction (in deductee details): Remarks for higher deduction in  deductee details i.e., flag “C” to be mentioned only if the deductee PAN is structurally invalid. This validation is applicable to regular statement and correction (C3 & C9) statements pertaining to FY 2010-11 onwards.

9- Country name (in deductee details): In case of Form no. 27Q, the country name “MEXICO” has been updated to “UNITED MEXICAN STATES”. This change is applicable to regular and correction (C3 & C9) statements pertaining to FY 2013-14 onwards.

10- Applicability of FVU version:
From September 23, 2014, FVU version 4.4 would be mandatory for statements pertain to FY 2010-11 onwards

Download FVU version 4.4
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Latest RPU version 4.1 for e-TDS statements free download

Latest RPU version 4.1 for e-TDS statements free download

Tin.nsdl has launched latest RPU version 4.1 for e-TDS statements on 23 September 2014. RPU prepares regular as well as corrective statements pertaining to financial year 2011-12 and onwards. 

There are many new features added in this latest rpu 4.1 which are as follows.

1- Lower/ Non-deduction Certificate number issued by Assessing Officer (in deductee details): Length of field “Certificate number issued by the Assessing Officer u/s 197 for non-deduction/lower deduction” under deductee details (i.e. in Annexure 1) has been restricted to 10 digits. Certificate number to be quoted only in case of lower deduction/no deduction.

2-  Amount paid/ credited (in deductee details): Value in field “Amount paid/ Credited” to the deductee in case of Form no. 24Q should be less than or equal to 999999999.00. 

3-Total Taxable income (in salary details – Annexure II): Value in field “Total Taxable Income” to the deductee in case of Form no. 24Q, Q4 should be less than or equal to  999999999.00. 

4- Accounts Office Identification Number (AIN): It is mandatory to quote the AIN in case of Form no. 24Q and 26Q for deductor category “Central Government” & “State Government”.

5- Deductee reference number and Employee serial number (in deductee details): It is mandatory to quote in the field “Deductee reference no.” (In case of Form no. 26Q) and “Employee serial no.” (In case of Form no. 24Q), where PAN of the deductee is invalid.

6- Total tax deducted amount (in deductee details): In case of Form no. 24Q, value quoted in field “Total Tax deducted amount” should be less than or equal to value quoted in field “Amount paid/ credited” under deductee details.

7- Remarks for higher deduction (in deductee details): In case of 'C' (i.e. for higher deduction) remark in Deductee details (Annexure I) only below details will be allowed to be updated in correction statements:

o Deductee PAN
o Amount of payment
o Date of payment

8- Country name (in deductee details): In case of Form no. 27Q, the country name “MEXICO” has been updated to “UNITED MEXICAN STATES”. 

9- State name: State name “UTTARANCHAL” has been updated to “UTTARAKHAND”.

10- Incorporation of latest FVU Version 4.4 and 2.140

Download latest RPU version 4.1
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Amendments in appeal provision of Central excise, Custom and service tax

Amendments in appeal provision of Central excise, Custom and service tax

Finance act 2014 issued some amendments in appeal provision for service tax, Central excise and custom department. There is a circular no. 984/2014 dated 16 September 2014 issued in this regard. Full circular is as under.

The Finance Act (No.2), 2014 has been enacted on 06.08.2014.  Section 35F of the Central Excise Act, 1944 and Section 129E of the Customs Act, 1962 have been substituted with new sections to prescribe mandatory pre-deposit as a percentage of the duty demanded where duty demanded is in dispute or where duty demanded and penalty levied are in dispute.  Where penalty alone is in dispute, the pre-deposit shall be calculated on the penalty imposed.

1.2        The amended provisions apply to appeals filed after 6th August, 2014.  Sections 35F of the Central Excise Act, 1944 and Section 129E of the Customs Act, 1962 contain specific saving clause to state that all pending appeals/stay applications filed till the enactment of the Finance Bill shall be governed by the erstwhile provisions.

1.3        Section 35FF of the Central Excise Act, 1944 and Section 129EE of the Customs Act, 1962 have also been substituted to provide for payment of refund along with interest at the prescribed rate on the amount pre-deposited from the date of such payment till the date of refund.       In exercise of the powers conferred under the new Section 35FF of the Central Excise Act, 1944 and Section 129EE of the Customs Act, Notification Nos 24/2014-CE(NT) and 70/2014-Cus(NT), both dated 12.08.2014 have been issued specifying six percent as rate of interest on refunds made under those sections.

1.4        Various doubts / issues have been raised by trade bodies, industry associations and field formations etc. on the implementation of the new provisions. With a view to implement the scheme smoothly, the following clarifications are issued.


2.         Quantum of pre-deposit in terms of Section 35F of Central Excise Act, 1944 and Section 129E of the Customs Act, 1962:

2.1        Doubts have been expressed with regard to the amount to be deposited in terms of the amended provisions while filing appeal against the order of Commissioner (Appeals) before the CESTAT.  Sub-section (iii) of Section 35F of the Central Excise Act, 1944 and Section 129E of the Customs Act, 1962 stipulate payment of 10% of the duty or penalty payable in pursuance of the decision or order being appealed against i.e. the order of Commissioner (Appeal).  It is, therefore, clarified that in the event of appeal against the order of Commissioner (Appeal) before the Tribunal, 10% is to be paid on the amount of duty demanded or penalty imposed by the Commissioner (Appeal).  This need not be the same as the amount of duty demanded or penalty imposed in the Order-in-Original in the said case.

2.2        In a case, where penalty alone is in dispute and penalties have been imposed under different provisions of the Act, the pre-deposit would be calculated based on the aggregate of all penalties imposed in the order against which appeal is proposed to be filed.

2.3        In case of any short payment or non-payment of the amount stipulated under Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962, the appeal filed is liable for rejection.


3.         Payment made during investigation:

3.1        Payment made during the course of investigation or audit, prior to the date on which appeal is filed, to the extent of 7.5% or 10%, subject to the limit of Rs 10 crores, can be considered to be deposit made towards fulfillment of stipulation under Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962.  Any shortfall from the amount stipulated under these sections shall have to be paid before filing of appeal before the appellate authority.  As a corollary, amounts paid over and above the amounts stipulated under Section 35 F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962, shall not be treated as deposit under the said sections. 

3.2        Since the amount paid during investigation/audit takes the colour of deposit under Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962 only when the appeal is filed, the date of filing of appeal shall be deemed to be the date of deposit made in terms of the said sections. 

3.3        In case of any short-payment or non-payment of the amount stipulated under Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962, the appeal filed by the appellant is liable for rejection.


4.         Recovery of the Amounts during the Pendency of Appeal:

4.1        Vide Circular No.967/1/2013 dated 1st January, 2013, Board has issued detailed instructions with regard to recovery of the amounts due to the Government during the pendency of stay applications or appeals with the appellate authority.  This Circular would not apply to cases where appeal is filed after the enactment of the amended Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962.

4.2        No coercive  measures for the recovery of balance amount i.e., the amount in excess of 7.5% or 10% deposited in terms of  Section 35F of  Central Excise Act, 1944  or Section 129E of Customs Act, 1962, shall be taken during the pendency of appeal where the  party / assessee shows to the jurisdictional authorities:
(i)         proof of payment of stipulated amount as pre-deposit of 7.5% / 10%, subject to a limit of Rs.10 crores, as  the case may be; and
(ii)         the copy of appeal memo filed with the appellate authority.

4.3        Recovery action, if any, can be initiated only after the disposal of the case by the Commissioner (Appeal) / Tribunal in favour of the Department.  For example, if the Tribunal decides a case in favour of the Department, recovery action for the amount over and above the amount deposited under the provisions of Section 35F / 129E may be initiated unless the order of the Tribunal is stayed by the High Court/Supreme court.  The recovery, in such cases, would include the interest, at the specified rate, from the date duty became payable, till the date of payment.


5.         Refund of pre-deposit:

5.1        Where the appeal is decided in favour of the party / assessee, he shall be entitled to refund of the amount deposited along with the interest at the prescribed rate from the date of making the deposit to the date of refund in terms of Section 35FF of the Central Excise Act, 1944 or Section 129EE of the Customs Act, 1962.

5.2        Pre-deposit for filing appeal is not payment of duty.  Hence, refund of pre-deposit need not be subjected to the process of refund of duty under Section 11B of the Central Excise Act, 1944 or Section 27 of the Customs Act, 1962.  Therefore, in all cases where the appellate authority has decided the matter in favour of the appellant, refund with interest should be paid to the appellant within 15 days of the receipt of the letter of the appellant seeking refund, irrespective of whether order of the appellate authority is proposed to be challenged by the Department or not.

5.3        If the Department contemplates appeal against the  order of the Commissioner (A) or the order of CESTAT, which is in favour of the appellant, refund along with interest would still be payable unless such order is stayed by a competent Appellate Authority.

5.4        In the event of a remand, refund of the pre-deposit shall be payable along with interest.

5.5        In case of partial remand where a portion of the duty is confirmed, it may be ensured that the duty due to the Government on the portion of order in favour of the revenue is collected by adjusting the deposited amount along with interest.

5.6.       It is reiterated that refund of pre-deposit made should not be withheld on the ground that Department is proposing to file an appeal or has filed an appeal against the order granting relief to the party.  Jurisdictional Commissioner should ensure that refund of deposit made for hearing the appeal should be paid within the stipulated time of 15 days as per para 5.2 supra.


6.         Procedure and Manner of making the pre-deposits:

6.1        E-payment facility can be made use of by the appellants, wherever possible.

6.2        A self attested copy of the document showing satisfactory proof of payment shall be submitted before the appellate authority as proof of payment made in terms of Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962.

6.3        Column 7 of EA.1, column 6 of CA.1 and column 6 of ST.4 for filing appeal before Commissioner (Appeals), seek details of the duty/penalty deposited.  The same may be used for indicating the deposits made under amended Section 35F of the Central Excise Act, 1944 or section 129E of the Customs Act, 1962.

6.4        The appeal filed before the CESTAT are filed along with the appeal memo in prescribed format (Form EA-3 for Central Excise Appeals and Form CA-3 for the Customs Appeals).  Column 14(i) of the said appeal forms seeks information of payment of duty, fine, penalty, interest along with proof of payment (challan).  These columns may, therefore, be used for the purpose of indicating the amount of deposit made, which shall be verified by the appellate authority before registering the appeal.

6.5        As per existing instructions, a copy of the appeal memo along with proof of deposit made shall be filed with the jurisdictional officers.


7.         Procedure for refund:

7.1        A simple letter from the person who has made such deposit, requesting for return of the said amount, along with a self attested Xerox copy of the order in appeal or the CESTAT order  consequent to which the deposit becomes returnable and attested Xerox copy of  the document evidencing payment of such deposit, addressed to Jurisdictional Assistant/Deputy Commissioner of Central Excise and Service Tax or the Assistant/Deputy Commissioner of Customs, as the case may be, would suffice for refund of the amount deposited along with interest at the rate specified.

7.2        Record of deposits made  under Section 35F of the Central Excise Act, 1944 or section 129E of the Customs Act, 1962 should be maintained by the Commissionerate so  as to facilitate seamless verification of the deposits at the time of processing the refund claims made in case of favourable order from the Appellate Authority.


8.         Amendment to Preamble of Orders:

8.1        In order to make the new provisions known to the assessee / trade every adjudicating authority lower in rank to the Commissioner is directed to incorporate the following sentence in the Preamble to the order being issued by them –
            “An appeal against this order shall lie before the Commissioner (Appeal) on payment of 7.5% of the duty demanded where duty or duty and penalty are in dispute or penalty, are in dispute or penalty, where penalty alone is in dispute. ”
8.2        The following may be added in the preamble of the orders issued by the Commissioner (Appeals) –
            “An appeal against this order shall lie before the Tribunal on payment of 10% of the duty demanded where duty or duty and penalty are in dispute, or penalty, where penalty alone is in dispute”.

8.3        The following may be added in the preamble of the orders issued by the Commissioner as original adjudicating authority –

            “An appeal against this order shall lie before the Tribunal on payment of 7.5% of the duty demanded where duty or duty and penalty are in dispute, or penalty, where penalty alone is in dispute”.

9.         Receipt of the Circular may please be acknowledged.

10.        Hindi version follows.
Exemptions available on Long term capital gains

Exemptions available on Long term capital gains

All of us are aware that income in any form usually attracts tax. Capital assets are wealth created over a lifetime and the choice of selling these assets is made with an intention to increase existing wealth in the form of gains. Tax on capital gains directly affects investment decisions. However, there are various options available under the law to counter the tax arising at the time of sale, some of which have been articulated below to help you pick options of your liking.

CATEGORISING YOUR GAINS
Capital asset is defined to include property of any kind excluding stock-in-trade, personal effects, agricultural land and certain specified bonds. However, jewellery, archaeological collections, drawings, paintings, sculptures or any work of art although may be for personal use are also covered under the definition of 'capital asset'. Capital gain is computed by deducting the cost of acquisition, cost of improvement and any expenditure incurred in connection with transfer from the sale consideration. Capital gains can be classified into long-term (LTCG) and short-term (STCG) depending on the period for which the capital asset has been held by the transferor before the date of suchtransfer. It is important to remember the category in which the capital gain falls because it will eventually impact the rate at which it is taxed and the tax benefits which can be enjoyed on re-investment of such gains/consideration.

STCG is earned on sale of a capital asset which has been held for not more than 36 months immediately preceding the date of its transfer. In case of any security listed on a recognised stock exchange in India or a unit of the Unit Trust of India or a unit of equity-oriented mutual fund or a zero-coupon bond, the period of holding for the gain to qualify as STCG is twleve months. The Income tax law has recently been amended to provide that the unlisted securities and a unit of mutual fund (other than an equity-oriented mutual fund) shall be a short-term capital asset, if it is held for not more than 36 months (which was 12 months in the erstwhile provisions). Any "capital asset" held for more than 36 months before its transfer (more than 12 months in case of listed securities, units of UTI or equity-oriented mutual fund) will qualify as a long-term capital asset and gains realised on its sale will qualify as a LTCG.

LTCG is taxed at a beneficial rate of 20%, plus a cess of 3%, subject to fulfilment of certain conditions. Besides the concessional rate of taxes available on sale of capital assets, there are also certain exemptions provided under the Income tax law for capital gains arising from sale of long-term capital asset.

CLAIMING EXEMPTIONS
LTCG is exempt for an individual or HUF on sale of a residential house property, if such gains (not the whole consideration) is utilised to purchase or construct another residential house. It should be noted that the new house should be purchased within one year before or two years after the date of transfer. In case of construction, the new house should be constructed within three years from the date of transfer. Exemption will be limited to the capital gains or the cost of the new house, whichever is lower

LTCG is exempt for an individual or HUF where it is realised on sale of any capital asset, not being a residential house, if the net consideration (not merely the gains) is invested in purchase or construction of a residential house. The timeline for purchase or construction is the same as mentioned above. However, to avail this benefit, the assessee should not own more than one house other than the new asset on the date of transfer. As per the recent clarifications made in Finance Act, 2014, the purchase of house property to claim such exemption has been restricted to one residential house property situated in India. Exemption in this case will be proportionate to the amount invested in relation to the net sale consideration.

The exempt amount is calculated by multiplying the capital gain with the number arrived by dividing the amount invested with the net sale consideration. Although LTCG is required to be invested as per the timelines mentioned in Income Tax law (i.e. two/ three years from the date of transfer), it is possible that such investment may not be made before the due date of filing of return.

Accordingly, the unutilised amount of capital gain or net consideration can be deposited in a separate account maintained with a nationalised bank under the Capital Gain Account Scheme (CGAS). Such investment needs to be made before the due date of filing of return of income in order to claim exemption and should be utilised only for specified purposes within the stipulated time period. In case the amount deposited in CGAS is not utilised within the specified period, it shall be charged as LTCG of the year in which the time limit for making the requisite investment expires.

LTCG can be claimed as exempt in case the gains are invested in bonds of National Highways Authority of India and Rural Electrification Corporation within six months from the date of transfer. However, the exemption is limited to Rs 50 lakh in such a case. It has been recently clarified in the Finance Act 2014 that the limit of Rs 50 lakh is in aggregate and applies to total investment. The exemption up to Rs 50 lakh can be claimed only in one financial year, even if the specified period of six months covers two financial years

It is important to remember that staying well informed of beneficial tax provisions always helps in saving substantial tax liability. All that is required is to make prudent investments at the right time. This will help in enjoying the fruits of one's labour without taking a cut on the pocket in the form of tax.
TRACES advice for one challan for TDS payments

TRACES advice for one challan for TDS payments

As per the records of the Centralized Processing Cell (TDS), it has been observed that you have used multiple challans in a month, for payment of Tax Deducted.

For Deductor's convenience, CPC(TDS) has established processing logic in the system that can accept a Single Challan for reporting of Tax Deposited in following circumstances :


Payment of Tax Deducted under different sections of the Income Tax Act, 1961:

 • The CPC(TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.
 • Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also
  
 
CPC (TDS) is committed to provide best possible services to you.
Situation prior to Financial Year 2012-13
Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details
Situation after Financial Year 2012-13
Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statements.
 
 Payment of Tax Deducted for different Assessment Years:

 • In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statement. 

 • Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2,3&4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.

Different challans used for the purpose of reporting multiple Deductees associated with different branches with same TAN:

 • The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.

 • A single challan can be used for the purpose of reporting Tax Deducted for such deductees.

 • Example: If a Bank has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.

Based on the above information, you may use a single challan in a month towards payment of Tax Deposited. 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.
RBI clarification on defaulters guarantor lender and unit

RBI clarification on defaulters guarantor lender and unit

Please refer to the Master Circular on Wilful Defaulters DBOD.No. CID.BC.3/ 20.16.003/2014-15 dated July 1, 2014.

2. Paragraph 2.1 of the circular lists out various events when a “wilful default” would be deemed to have occurred. In view of references received from a few banks regarding scope/definition of “wilful default”, it is clarified as follows:

The term ‘lender’ appearing in the circular covers all banks/FIs to which any amount is due, provided it is arising on account of any banking transaction, including off balance sheet transactions such as derivatives, guarantee and Letter of Credit.

The term ‘unit’ appearing therein has to be taken to include individuals, juristic persons and all other forms of business enterprises, whether incorporated or not. In case of business enterprises (other than companies), banks/FIs may also report (in the Director column) the names of those persons who are in charge and responsible for the management of the affairs of the business enterprise.

3. Paragraph 2.6 of the circular is amended to read as follows:

“While dealing with wilful default of a single borrowing company in a Group, the banks /FIs should consider the track record of the individual company, with reference to its repayment performance to its lenders. However, in cases where guarantees furnished by the companies within the Group on behalf of the wilfully defaulting units are not honoured when invoked by the banks /FIs, such Group companies should also be reckoned as wilful defaulters”.

4. In connection with the guarantors, banks have raised queries regarding inclusion of names of guarantors who are either individuals (not being directors of the company) or non-group corporates in the list of wilful defaulters. It is advised that in terms of Section 128 of the Indian Contract Act, 1872, the liability of the surety is co-extensive with that of the principal debtor unless it is otherwise provided by the contract. Therefore, when a default is made in making repayment by the principal debtor, the banker will be able to proceed against the guarantor/surety even without exhausting the remedies against the principal debtor. As such, where a banker has made a claim on the guarantor on account of the default made by the principal debtor, the liability of the guarantor is immediate. In case the said guarantor refuses to comply with the demand made by the creditor/banker, despite having sufficient means to make payment of the dues, such guarantor would also be treated as a wilful defaulter. It is clarified that this would apply only prospectively and not to cases where guarantees were taken prior to this circular. Banks/FIs may ensure that this position is made known to all prospective guarantors at the time of accepting guarantees.

5. Banks/FIs may take due care to follow the provisions set out in paragraph 3 of the Master Circular on Wilful Defaulters dated July 1, 2014 in identifying and reporting instances of wilful default in respect of guarantors also. While reporting such names to RBI, banks/FIs may include “Guar” in brackets i.e. (Guar) against the name of the guarantor and report the same in the Director column.

6. This circular is issued in exercise of the powers conferred upon Reserve Bank of India under Section 35A of the Banking Regulation Act, 1949.
India signS DTAA with Bhutan

India signS DTAA with Bhutan

Government of India notifies DTAA(Double tax avoidance agreement) with Bhutan. Income tax department issued notification no. 42 dated 5 September 2014 regarding DTAA with Bhutan. Full notification and agreement can be downloaded from this link.


Manual selection is compulsory for cases of scrutiny for FY 2014-15

Manual selection is compulsory for cases of scrutiny for FY 2014-15

CBDT made instruction as which cases will come into scrutiny for financial year 2014-15. Manual section of cases will be mandatory for scrutiny for financial year 2014-15. Full instruction is as under.

In supersession of earlier Instructions on the above subject, the Board hereby lays down the following procedure and criteria for manual selection of returns/cases for scrutiny d ing the financial-year 2014-2015:-

(a) Cases involving addition in an earlier assessment year in excess of Rs. 10 lakhs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

(b) Cases involving addition in an earlier assessment year on the Issue of transfer pricing in excess of Rs. 10 crore or more on a substantial and recurring question of Jaw or fact which is confirmed in appeal or is pending before an appellate authority.

(c) All assessments pertaining to Survey under section 133A of the Act excluding the cases where there are no impounded books of accounts/documents and returned income excluding any disclosure made during the Survey is not less than returned income of preceding assessment year. However, where assessee retra u the
disclosure made during the Survey will not be covered by this exclusion.

(d) Assessments in search and seizure cases to be made under section 1588, 1588C, 1588D, 153A & 153C read with section 143(3) of the Act and also for the turns filed for the assessment year relevant to the previous year in which authorization for search and seizure was executed u/s 132 or 132A of the Act.

(e) Returns filed in response to notice under section 148 of the Act.

(f) Cases where registration u/s 12AA of the IT Act has not been granted or has been cancelled by the CIT/DIT concerned, yet the assessee has been found I to beclaiming tax-exemption under section 11 of the Act. However, Where such orders of the CIT/DIT have been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.

(g) Cases where order denying the approval u/s 10(23C) of the Act or withdrawing the approval already granted has been passed by the Competent Authority, yet the assessee has been found claiming tax-exemption under the aforesaid provision of the Act.

(h) Cases in respect of which specific and verifiable information pointing out tax-evasion Is given by Government Departments/Authorities. The Assessing Officer shall record reasons and take prior approval from jurisdictional Pr. CCIT CCIT/Pr. DGIT/DGIT concerned before selecting such a case for scrutiny.

2. Computer Aided Scrutiny Selection (CASS): Cases are also being selected under CASS on the basis of broad based selection filters. list of such cases shall be separately Intimated In due course by the
DGIT(Systems) to the jurisdictional authorities concerned.

3. It Is reiterated that the targets for completion of scrutiny assessments and strategy framing assessments as contained in Central Action Plan document for Financial-Year 2014-2015 has to be complied with and it must be ensured that all scrutiny assessment orders including the cases selected under the manual criterion are completed through the AST system software only Further, in order to ensure the quality of assessments being framed, Pr. CCsIT/C.CsIT/Pr. DsGIT/DsGIT should evolve a suitable monitoring mechanism and by 30' April, 2015, such authorities shall send a report to the respective Zonal Member with a Copy to Member (IT) containing details of at least 50 quality assessment orders from their respective charges. In this regard, IT Authorities concerned must ensure that cases selected for publication in let us Share' are picked up only from tide quality assessments as reported.

4. These instructions may be brought to the notice of all concerned. If considered neccessary, supplementary guideline would be issued subsequently.


5. Hindi version to follow.
SBI signing 2986 probationary officers

SBI signing 2986 probationary officers

State Bank of India has notified recruitment of 2,986 probationary officers to work in its group of banks across the country.
The online registration can be done during September 1 – 18, 2014. The written examination would be conducted tentatively in November 2014.
Graduates who are in the age group of 21-30 years are eligible to apply and age relaxation would be extended as per the Government norms.
The total emoluments vary depending upon the place of posting and the perquisites by individual banks. Those posted in Mumbai, for instance, would get an average monthly salary of Rs. 65,000, SBI said in its notification.
Meanwhile, SBI had also declared results of the written examination for the recruitment of probationary officers held in June/July this year. The group discussions and interviews for the same will commence from October 8, 2014.
DDA housing scheme open today for 25034 flats

DDA housing scheme open today for 25034 flats

The DDA announced the opening of its Housing Scheme 2014 on Monday. The authority is offering 25,034 flats in Delhi, New Delhi and Delhi Cantt area to people who don't have a flat in Delhi.

 The forms for the scheme were put on sale from 9:30 am at DDA office (Vikas Sadan) and also at 13 empanelled banks and will close on October 9.  The draw of the lot is expected to be held within 20 days of the scheme's closure.

The 13 banks are Punjab National Bank, State Bank of India, Central Bank of India, Corporation Bank, Syndicate Bank, Union Bank of India, Indusland Bank, Kotak Mahindra Bank, IDBI Bank, ICICI Bank Ltd, Yes Bank, HDFC Bank and Axis Bank. The forms are to be submitted at these banks.

"We are offering 25,034 flats in the 2014 scheme out of which 22,627 would be one-bed room apartments. Among others, 896 flats are constructed after 2010, with green technology," said Balvinder Kumar, Vice-chairman, DDA.

The new scheme offers flats ranging from Rs 7 lakh to Rs 1.2 crore across categories, viz - EWS, LIG, MIG, HIG, Janta flats and one-room apartments and would be rolled out from September 1.

The registration fee for all other categories is Rs 1 lakh, and Rs 10,000 for EWS (Economically Weaker Section) category, the official said, adding a ceiling of Rs 1 lakh of annual income has been prescribed for those applying under the EWS category.

The one-bedroom apartment flats are in Dwarka, Rohini, Narela and Siraspur areas, priced above 14 lakh onwards, depending on the location and plinth area, the DDA said.

Out of 896 newly-built flats, 512 are MIG flats and 384 Janta flats, located in Mukherjee Nagar, Narela, Rohini and Kalyan Vihar areas. The MIG flats would range from Rs 41.30 lakh and Rs 69.90 lakh and the Janta flats - one room tenement with a kitchentte - would cost a little over Rs 10 lakh, it said.

DDA is offering 700 flats for EWS category, which are part of the housing complex at Swatantra Bharat Mills premises at Rohtak Road. The flats have been developed by a private builder as part of a Memorandum of Understanding (MoU) signed between the DDA and the builder.

The EWS flats priced from Rs 7 lakh to Rs 11 lakh, the urban body said.

Over 800 old flats located under different categories are also being offered, on account of them being cancelled or surrendered.

These flats (older) consists of 21 HIG flats, 49 MIG, 451 LIG, 129 expendable and 161 Janta flats. The cost ranges from Rs 1.2 crore for HIG flats to Rs 5.4 lakh for Janta flats, the DDA said.

The DDA had earlier said that the total number of flats on offer was over 26,000 but on Friday said the figure has been revised to over 25,000.

For the first time, DDA has also decided to do away with attachments along with the application forms and now only a photocopy of PAN card would be needed for the process, she said.

There is no income limits on one-bedroom apartments and any eligible candidate can apply. For EWS category, there will also be an option to pay the cost of the flats in instalments, she added.

For unsuccessful applicants, the DDA would return the registration amount within 90 days of the draw of lots and for delays beyond 90 days, interest would be paid to the applicants.

In case of successful applicants, who decide to surrender their allotments, refund amount has been rationalised wherein the maximum amount recovered has been restricted to Rs 50,000.

Any Indian citizen, 18 years of age and above on the date of filing of the application for the flats is eligible for the scheme.

The applicants must not own any residential flats or plot in full or in part on leasehold or freehold in Delhi or New Delhi or Delhi Cantonment either in his/her own name or in the name of his/her minor or dependent children, the DDA said.

One person can submit one application only, it said, adding, both husband and wife can apply for flats subject to fulfilment of eligibility conditions with a stipulation that if both are found to be successful, only one of them shall retain the allotment of a flat.
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