Clarification regarding deduction under Section 80 CCD(pension scheme)

F.No. 275/192/2009-IT (B)
New Delhi Dated the 9th February, 2010.
Sub: Clarification regarding deduction in respect of contribution to pension scheme under Section 80 CCD – matter reg.
            A number of representations have been received regarding deduction under Section 80 CCD for contribution made under pension scheme in the light of Circular No-1 /2010 dated 11th Jan’2010 issued on the subject of Deduction of Tax at Source etc.
           It is clarified that in accordance with the provisions of Section 80 CCD, deduction in respect of contribution made by an individual in the previous year to his account under a pension scheme notified, is allowed in computation of his total income –
(a) in the case of an employee, ten per cent of his salary in the previous year; and
(b) in any other case, ten per cent of his gross total income in the previous year.
2. It is further clarified that where the Central Government or any other employer makes any contribution to the account of employee for the pension scheme, the assessee shall also be allowed a deduction in the computation of his total income of the whole of the amount contributed by the Central Govt. or any other employer as does not exceed 10% of his salary in the previous year.
3. Salary for the purpose of above section (80 CCD) includes dearness allowance if the terms of employment so provide, but excludes all other allowances and perquisites.
4. It is further clarified that aggregate limit of deduction under this section (80 CCD) along with Sections 80 C, 80 CCC shall not in any case exceed Rs. one lakh.
Yours faithfully,
(Ansuman Pattnaik)
Director (Budget)
To,
All DDOs of Central Government, State Governments, CAG & other persons as per standard list

Tax info books

Tax Info Booklets   as amended by Finance Act 2008

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  Compute Capital Gains

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  Trusts and Institutions

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  TDS Other than Salaries - Vol I

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  TDS other than salaries - Vol II

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  Valuation of Perquisites

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  Filing_Your_Tax_Return

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  Taxation of Salaried Employees

Downloads e-forms

Download eForm

Description	e-Form with Instruction kit	e-Form
Form for filing Balance Sheet and other documents with the Registrar	Form 23AC	Form 23AC
Form for filing Profit & Loss Account and other documents with Registrar	Form 23ACA	Form 23ACA
Form for filing Annual Return by a Company having a share capital with the Registrar of Companies	Form 20B	Form 20B
Form for submission of Compliance Certificate for Companies with Paid Up Capital between Rs. 10 lakh to Rs. 5 crore.	Form 66	Form 66
Particulars of Annual Return of the company not having share capital	Form 21A	Form 21A

Annual eFiling

As a part of Annual eFiling, Companies incorporated under the Companies Act, 1956 are required to efile the following documents with the Registrar of Companies (RoC):

Sr. No.	Document	e-Form
1	Balance-Sheet	Form 23AC to be filed by all Companies*
2	Profit & Loss Account	Form 23ACA to be filed by all Companies
3	Annual Return	Form 20B to be filed by Companies having share capital
4	Annual Return	Form 21A to be filed by companies without share capital
5	Compliance Certificate	Form 66 to be filed by Companies having paid up capital of Rs.10 lakh to Rs. 5 crore

savings a/c will fetch you more interest

                   The absence of TDS will be a big draw for high net worth individuals, who have been parking short-term surpluses in mutual funds. Interest income of over Rs 10,000 earned from bank fixed deposits per annum is taxed at the rate of 10%. But interest income over Rs 10,000 each year earned from savings account will not be taxed. 
                     Since returns on these deposits are not subject to tax deduction at source (TDS), high net worth individuals may choose these accounts over other short-term instruments such as mutual funds and term deposits, banks reason.
                     The interest on savings accounts remains unchanged at 3.5%, depositors will earn more interest income from these accounts from 1st April ,10.

Notification :

Sub:Payment of Interest on Savings Bank Account on a Daily Product Basis 

RBI/2008-09/452

DBOD. No. Dir. BC.128/13.03.00/2008-09

April 24, 2009

All Scheduled Commercial Banks (Excluding RRBs)

Dear Sir

Payment of Interest on Savings Bank Account on a Daily Product Basis

Please refer to paragraph 88 of the Annual Policy Statement announced by Governor on April 21, 2009 (extract enclosed), in terms of which it has been proposed that payment of interest on savings bank accounts by scheduled commercial banks would be calculated on a daily product basis with effect from April 1, 2010. In terms of extant guidelines, as per paragraph 2.2B of the Master Circular dated July 1, 2008 on Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) (NRE) Accounts, banks have been advised that in the case of savings deposits, interest should be calculated on the minimum balance to the credit of the deposit account during the period from the 10th to the last day of each calendar month and credited to the account only when it is Re.1/- or more. Several banks had suggested that interest on savings bank accounts may be calculated either on the minimum balances in the deposit accounts during the period from the first to the last day of each calendar month or on a daily product basis. The matter was referred to the Indian Banks' Association, which was of the view that payment of interest on a daily product basis would be feasible only when computerisation in banks is completed. 2. We advise that on a review, and in view of the present satisfactory level of computerisation in commercial bank branches, it is proposed that payment of interest on savings bank accounts by scheduled commercial banks would be calculated on a daily product basis with effect from April 1, 2010. In order to ensure a smooth transition, banks may work out the modalities in this regard.

Yours faithfully

(P. Vijaya Bhaskar) Chief General Manager

Encl: as above

penalty without PAN

                     Any income received if you are unable to provide your permanent account number from 1St Apr,
The tax deducted at source, or TDS, on payments could be as high as 20% for those not quoting PAN against the regular rate of 2%-10%. 

                 The Budget 2009-10 had made it mandatory for residents and non-residents to quote this number or face a higher rate of withholding tax. It comes into effect from Thursday, April 1.
                  Senior citizens could just file Form 15H in absence of tax liability and become eligible for exemption from TDS. If they do not furnish a PAN they will have to face a TDS rate of 20%.
                     The new rule comes with a severe penalty if not followed. Any failure to deduct taxes at appropriate rates will result in disallowance of expenditure for the one making payment, recovery of tax from him, and levy of interest and penalty.
                   T he PAN is required to be quoted in document pertaining relating to sale of property, sale or purchase of a motor vehicle requiring registration other than two-wheelers. Most of the banking transactions require PAN to be quoted.

Tax plannings

Target full utilisation of Section 80 C:

      Maximum deduction available is to the tune of Rs 100,000. Assess your income to arrive at the amount you need to invest in this section.

The investment avenues include; Public Provident Fund (PPF) up to Rs 70,000, National Saving Certificate (NSC), Life Insurance or ULIP premium, tuition fees paid for children's education (2 children max), Equity linked savings schemes (ELSS), Post office saving deposit (POSD) and five year fixed deposits with banks among others.

For individuals in the higher income bracket, section 80 C which is the most popular one may not be sufficient to reduce overall tax liability. Here is where the other sections will play a key role in reducing tax outflow.

2. Interest on home loan: Individuals intending to buy a house should consider opting for a home loan. Interest payments up to Rs 150,000 pa are eligible for deduction under Section 24.

3. House Rent Allowance (HRA): You can take advantage of this if you are renting an accommodation. There are set guidelines determining the amount deductible. Please note that the rent agreement and the rent receipts need to be submitted.

4. Health Insurance Premium: Annual deduction of Rs 15,000 is permissible for self, spouse and dependent children. Also and additional Rs 15,000 is allowed for parents.

5. Medical reimbursement: Medical treatment expenses up to Rs. 15,000 can be claimed annually as deduction from salary u/s 17(2). Actual bills need to be produced.

6. Donation to Charitable institutions: Subject to the stated limits, donations to specified funds/institutions are eligible for tax benefits under Section 80G. Receipt needs to be produced.

7. Interest paid on educational loans: Deduction can be claimed on interest paid on educational loans taken for higher education of you, your spouse and children under section (u/s) 80 E. There is no limit on the amount of deduction you can claim.

However, the loan should be taken for a graduate or post-graduate program in engineering, medicine or management or a post-graduate course in the pure or applied sciences.

1. Section 80 C allows deduction of tuition fees spent on children's education.

2. If you want to pay rent to your parents or relatives (kindly note this arrangement cannot be done with your spouse), you will need to treat them as landlords and request the owner of the house to declare it in his/her personal income tax return.

3. The maturity proceeds of life insurance policies are not taxable.

4. Conveyance allowance up to maximum of Rs 800 can be claimed per month as deduction from salary u/s 10(14).

5. Long term capital gains on listed shares/securities are not taxable.

6. Capital gains on sale of house property can be avoided by purchasing another house property within two years after or one year before date of sale.

7. Stamp duty charges and registration charges paid while purchasing new house is eligible for tax deduction under Section 80 C.

The first step in the direction of tax saving is to assess your tax liability. So start the process so that you can then decide on what all to opt for to save maximum taxes.

Tax incentives are given to encourage savings/ investments. Savings form part of your overall financial plan which in effect means tax planning is a subset of financial planning. Your financial plan will set objectives for you based on your aspirations, your life style, your age group, size of family etc.

The question you need to ask yourself is, "Did you adhere to your financial plan while investing in an instrument for tax saving purposes?" Well if your answer to that is "yes", then you're moving in the direction of attaining your financial goals. If not, it's time for you to take corrective action.

The damage may have been done for the past year but the forthcoming is an opportunity for you to plan well. Remember, procrastination is the thief of time. So if you postpone it now, this year will be no different from the last one.    

HRA

How is HRA accounted for in the case of a salaried individual and a self employed professional?         HRA (House Rent Allowance) is accounted for in the case of salaried people under Section 10 (13A) of Income Tax Act, 1961, in accordance with rule 2A of Income Tax Rules.         On the other hand, self employed professionals cannot be considered for HRA exemption under this act, as they do not earn a salary. However, they can claim benefits on the house rent expenses incurred under section 80GG, which resembles section to 10(13A) but is subject to certain conditions.

Home loan repayment reduces tax liability

You can reduce your income tax burden through the interest you pay on a home loan. Under Section 24 of the Income Tax Act, interest paid up to Rs 1.5 lakhs a year on a home loan can be set off against 'loss' from other heads for a self-occupied property.

In case the property has been acquired before April 1, 1999, interest up to Rs 30,000 a year can be set off. In case the property has been rented out, the entire interest paid is deductible from the taxable income after computing rental income. If the loan is taken for renovation, interest up to Rs 30,000 a year is deductible.

The pre-equated monthly instalment (pre-EMI ) interest amount (the interest amount paid during construction) is deducted under Section 24 of the Income Tax Act equally over five years from the year of completion of construction. It is to be noted that if you have taken a loan only for the land purchase, it is not eligible for any tax benefits. 

In case you take a composite loan (for land and house construction), you will be eligible for income tax benefits only after the completion of the construction.

Tax benefits are available on loans to construct a residential property, buy a residential property, extend a house, and for major repairs or renovation of a house. The home loan is disbursed through a number of instalments as the construction progresses.

During the construction period, you have to pay pre-EMI interest every month. The entire pre-EMI interest paid is allowed as a deduction (under Section 24) equally over five years starting from the year in which the construction is completed.

However, for a selfoccupied house, the total deduction allowed towards interest on the home loan is Rs 1.5 lakhs a year. There is no limit for deduction on interest paid towards a second home loan, provided you add the rental income (annual rental value of your second house) to your income. The annual rental value will be the higher of actual rent received a year, municipal value, and fair rent fixed.  
Out of the total annual rental value, there is standard deduction of 30 percent available towards maintenance charges and municipal taxes. The insurance premiums paid on the property can be deducted too.

The deduction in respect of principal loan amount repaid is restricted to Rs 1 lakh. In case you have taken a personal loan from a bank and used the money to purchase or construct a house, you can claim tax benefits on both principal and interest paid.

However, if the loan has been borrowed from a friend or relative, you can claim tax benefits on the interest paid only.

Co-owners can claim tax benefits separately, as per the shareholding in the property. If the shareholding is not mentioned in the purchase deed, they can execute an agreement on a requisite stamp paper, mentioning the shares in the property, and claim the benefits separately. 
Both can claim deductions up to Rs 1.5 lakhs a year separately towards interest paid for a self-occupied house and the entire interest paid on a rented-out house, after computing rental income received, and also up to Rs 1 lakh towards principal repaid.

Under Section 80C of the Income Tax Act, home loan borrowers can claim a deduction of up to Rs 1 lakh from the taxable income on a loan repaid during the year, along with specified savings instruments.

Along with the other specified savings instruments, a home loan repayment amount, the amount spent on stamp paper and registration costs on registering a house, all up to Rs 1 lakh is deductible from the total income.

If you sell the property within five years from the year in which you started, you lose the tax benefits availed under Section 80C (on the principal loan amount) and the amount will be clubbed to the income of the year in which the property has been sold. However, you will not lose the deductions claimed on interest paid under Section 24.   

Tax returns in e-form

        Minimum turnover for compulsory registration under VAT system to be increased to Rs five lakh from Rs two lakh.
        And the turnover limit for compulsory audit of books of accounts of the assessees proposed to be increased to Rs 60 lakh.  

Direct Tax Code, GST from April 2011

The Tax Code, now open to  public debate, will be introduced as a Bill in Parliament’s winter session. If passed, it will become the new Income Tax Act, replacing the existing four decade old IT Act of 1961. The new IT Act will come into force from April 1, 2011.   

Income tax forms

Income Tax Forms

The following are the Income Tax Forms (ITR Forms) available for download by the various class of Income Tax Assessees in india.

ITR Form 1:

ITR Form 1 is the Income Tax Form for Individuals having Income from Salary/ Pension/ family pension & Interest.
Income Tax Return 1 (ITR1) in English (Doc format) – Download
Income Tax Return 1 (ITR1) in English (PDF format) – Download
Income Tax Return 1 (ITR1) in Hindi (Doc format) – Download
Income Tax Return 1 (ITR1) in Hindi (PDF format) – Download

ITR Form 2:

ITR Form 2 is the Income Tax Form for Individuals and HUFs not having Income from Business or Profession.
Income Tax Return 2 (ITR2) in English (Doc format) – Download
Income Tax Return 2 (ITR2) in English (PDF format) – Download
Income Tax Return 2 (ITR2) in Hindi (Doc format) – Download
Income Tax Return 2 (ITR2) in Hindi (PDF format) – Download

ITR Form 3:

ITR Form 3 is the Income Tax Form for Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship.
Income Tax Return 3 (ITR3) in English (Doc format) – Download
Income Tax Return 3 (ITR3) in English (PDF format) – Download
Income Tax Return 3 (ITR3) in Hindi (Doc format) – Download
Income Tax Return 3 (ITR3) in Hindi (PDF format) – Download

ITR Form 4:

ITR Form 4 is the Income Tax Form for individuals & HUFs having income from a proprietary business or profession.
Income Tax Return 4 (ITR4) in English (Doc format) – Download
Income Tax Return 4 (ITR4) in English (PDF format) – Download
Income Tax Return 4 (ITR4) in Hindi (Doc format) – Download
Income Tax Return 4 (ITR4) in Hindi (PDF format) – Download

ITR Form 5:

ITR Form 5 is the Income Tax Form for firms, AOPs (Association of Persons) and BOIs (Body of Individuals).
Income Tax Return 5 (ITR5) in English (Doc format) – Download
Income Tax Return 5 (ITR5) in English (PDF format) – Download
Income Tax Return 5 (ITR5) in Hindi (Doc format) – Download
Income Tax Return 5 (ITR5) in Hindi (PDF format) – Download

ITR Form 6:

ITR Form 6 is the Income Tax Form for Companies other than companies claiming exemption under section 11.
Income Tax Return 6 (ITR6) in English (Doc format) – Download
Income Tax Return 6 (ITR6) in English (PDF format) – Download
Income Tax Return 6 (ITR6) in Hindi (Doc format) – Download
Income Tax Return 6 (ITR6) in Hindi (PDF format) – Download

ITR Form 7:

ITR Form 7 is the Income Tax Form for persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).
Income Tax Return 7 (ITR7) in English (Doc format) – Download
Income Tax Return 7 (ITR7) in English (PDF format) – Download
Income Tax Return 7 (ITR7) in Hindi (Doc format) – Download
Income Tax Return 7 (ITR7) in Hindi (PDF format) – Download

Acknowledgement for e-Return and non e-Return:

Acknowledgement in English (Doc format) – Download
Acknowledgement in English (PDF format) – Download
Acknowledgement in Hindi (Doc format) – Download
Acknowledgement in Hindi (PDF format) – Download

TDS on fixed deposits in India

       If the total interest earned on all your fixed deposits in a bank is greater than Rs. 10,000 in a financial year, you are liable for TDS and the banks will deduct the income tax at source. The tax liability for the purpose of TDS is determined at the branch level. Even if a fixed deposit is in the name of a minor it will attract TDS and in this case the credit for TDS can be claimed by a person managing the minor's income. Whenever the bank pays an interest on your fixed deposits, it checks it for TDS eligibility. If it qualifies, the TDS is deducted. TDS is also deducted on interest accrued (but not yet paid) at the end of the financial year viz. 31st March every year.
The rate at which TDS is deducted varies according to the category of account holders.
      
TDS rates for a fixed deposit held by resident individual and HUF
If the fixed deposit holder is a resident individual and HUF, for a payment of up to 10 lacs, TDS will be deducted at a rate of 10% in addition to it there is an education cess of 3% which takes the total deduction to 10.3%. For a fixed deposit of resident individual or HUF with payments equal to 10 lacs or more the TDS rate is 10%, in addition to it there is a surcharge of 10% and educational cess of 3% this takes the total deduction to 11.3%
TDS rates for a fixed deposit held by corporate body
If the fixed deposit holder corporate body, for a payment of up to 1 crore TDS will be deducted at a rate of 20% plus an education cess of 3% which takes the total deduction to 20.6%. For a fixed deposit of corporate body with payments equal to 1 crore or more the TDS rate is 20% in addition to it there is a surcharge of 10% and educational cess of 3% this takes the total deduction to 22.6%
Effect of change in fixed deposit portfolio on TDS
Any change or enhancement in fixed deposit portfolio affects the TDS liability. If your changed portfolio earns a interest which falls under the ambit of income tax laws, you will be liable for TDS on your current portfolio. In case the interest on your current portfolio is not sufficient enough to cover the TDS, it will be deducted from the principal amount.

Tax Deduction on HRA (House Rent Allowance)

If you are a salaried person receiving house rent allowance (HRA) from your employer, you are entitled for a tax deduction under the Income Tax Act. The tax implications of the house rent allowance (HRA) seem to be a confusing factor for almost every person.

House rent allowance (HRA) is a grant given by the employer to the employee to meet the cost of renting a house. It is basically a part of the taxable salary of an individual and one receives it irrespective of the type of property he resides in. Whether one stays in the rented accommodation or resides in his own house, he will get the HRA if his employer chooses to offer the allowance.
HRA Deduction
The deductions on HRA are eligible under Section 10(13A) of the Income Tax Act and will depend on certain laws. An individual can claim an HRA exemption only if the following three conditions are satisfied

• An HRA allowance is received as part of the salary package.
• If one is staying in a rented accommodation and paying rent for it.
• The rent exceeds 10% of the salary.

But it should be noted that one cannot claim deduction for rent paid to spouse. The relationship between a husband and wife is not commercial in nature and therefore the rent paid to spouse is not considered by the income tax authorities. On the other hand, rent paid to the parents is eligible for exemption. If you stay with your parents and pay rent to them then you can claim for tax deductions. However you need to keep all your rent receipts since it is the only proof that you are paying rent. HRA exemptions are only available on submission of rent receipts or the rent agreement.

Another factor that effects the tax exemption is the place where you live. If one resides in a metro city, he is eligible for a deduction of up to 50% of the salary or else the deduction is 40%.

Union budget said on service tax 10-11

 10 new services under the service tax net : the Union budget has expanded or altered the scope of 10 existing services. The changes are to come into force from a date to be notified after enactment of Finance Bill, 2010.
The 10 services are:
1. Port /airport service: The definition of airport services, port services and other port services is being amended with the result that all services provided entirely within the airport/port premises would be classified under these services. Following this, an authorisation from the airport/port authority would not be a pre-condition for taxing these services and any service provided within the port or airport by any person to any person shall be liable to service tax.
2. Auctioneer’s service: An explanation has been added to clarify that the phrase ‘auction by government’ means an auction where government property is being auctioned and not when the government acts as an auctioneer for the private property or goods.
3. Management of investment under ULIP service: The definition of ‘management of investment under Ulip service’ is being amended to provide that the value of the taxable service for any year of the operation of policy shall be the actual amount charged by the insurer for management of funds under an unit linked insurance plan (Ulip) or the maximum amount of fund management charges fixed by the Insurance Regulatory and Development Authority (Irda), whichever is higher.
4. Transport of passenger by air service: In 2006, tax was imposed on international air travel by a passenger embarking in India and travelling in higher (other than economy) classes. The taxable service is being suitably amended to extend this levy to cover all domestic and international air passengers embarking in India. The impact of this amendment will be that air travel gets costlier.
5. Information technology software service: The service tax was limited to cases where such IT software was to be used in the course or furtherance of business or commerce. The definition of this taxable service is being suitably amended to extend this levy to cover the aforesaid IT software services provided in all cases, i.e. whether or not used in the course or furtherance of business or commerce. Now, even individual use of IT software is liable to service tax.
6. Commercial training & coaching service: In the case of ‘commercial training or coaching’ service, an explanation is being added to clarify that the term ‘commercial in the context of this service would mean any training or coaching, which is provided for a consideration, whether or not for profit. This change is being given retrospective effect from July 1, 2003.
7. Sponsorship service: Sponsorship service was brought under tax net in Budget 2006. However, sponsorship of sports events was kept out of the purview of the taxation with a view to encourage sports activity and to provide an avenue for funding sports events. Now, the exclusion available for sponsorship pertaining to sports is being removed by suitable amendment. Suitable exemption to certain categories of sports events would be considered at the appropriate time. This amendment is done with a view to tax the sponsorship generated by IPL franchises.
8. Construction of complex service: An explanation is being inserted to provide that unless the entire payment for the property is paid by the prospective buyer or on his behalf after the completion of construction (including its certification by the local authorities), the activity of construction would be deemed to be a taxable service provided by the builder/ promoter/ developer to the prospective buyer and the service tax would be charged accordingly.
This would only expand the scope of the existing service, which otherwise remain unchanged. Now, selling of under construction properties by builders is liable to service tax. Builder receiving entire consideration for the property after the completion of the property is not liable to service taxed.
9. Renting of immovable property service: The definition of taxable service is amended to provide explicitly that the activity of ‘renting’ itself is a taxable service. The change has been given retrospective effect from June 1, 2007.
This amendment is done specifically to overrule the judgment of the Delhi High Court in the case of Home Solutions Retail India Ltd & Others vs. UOI wherein the court had struck down the levy of service tax on renting with the observation that renting of immovable property for use in the course of furtherance of business or commerce does not involve any value addition and therefore cannot be regarded as service. Hence, service tax needs to be collected on property rented for commercial use.readmore
10. Renting of immovable property service: Suitable amendment in the definition of taxable service relating to renting to immovable property is being made so as to provide that tax would be charged on rent of a vacant land if there is an agreement or contract between the lessor and lessee that a construction on such land is to be undertaken for furtherance of business or commerce during the tenure of the lease. Now CIDCO and MIDC, which give land on lease for construction of factory will be liable to collect service tax on the lease rent received by them.

EPFO may set 8.5% rate for depositors

The country's largest retirement fund manager EPFO's trustees are likely to announce next month 8.5 per cent interest rate for over 4.71 crore depositors for 2010-11.
The Employees' Provident Fund Organisation's (EPFO) apex body Central Board of Trustees (CBT) headed by Labour Minister Mallikarjun Kharge is scheduled to meet on April 9 and approve 8.5 per cent rate of return on PF deposits for 2010-11, a Labour Ministry source said.
EPFO's advisory body Finance and Investment Committee (FIC), which met last month on February 26, recommended 8.5 per cent interest rate on PF deposits as at this rate of return there would be a surplus of Rs 15.26 crore, he said.
FIC had also said a return of 8.75 per cent for next fiscal would result in a deficit of Rs 426.53 crore. It is a general practice that the FIC recommendations are upheld by the CBT, which is the final authority to take a call.
EPFO has been maintaining the return rate of 8.5 per cent on PF deposits since 2005-06.
Besides this, the trustees would also vet the proposal of evolving a multi-banking model for PF collections as recommended by the FIC. At present, the State Bank of India (SBI) is the sole collection agent for EPFO.
Irked by SBI's unilateral decision to raise charges on PF collections, EPFO is considering handing over the business to other banks.

highest advance tax-payers

State Bank of India (SBI) tops the list of the highest advance tax-payers while three other public sector entities--LIC, IOC and Bank of Baroda, find themselves amongst the top ten advance tax-payers list for this fiscal (FY 10), an Income Tax source said.
SBI has shelled out Rs 6,552-crore as advance tax as compared to Rs 5,733-crore in the year-ago period while Mukesh Ambani-run Reliance Industries (RIL) tops the list in the private sector with a payment of Rs 3,075-crore as against Rs 1,838-crore in the last fiscal.
RIL occupies the third spot amongst the top ten highest advance tax-payers, the source said.
"SBI is followed by LIC (second spot) which has made a total payment of Rs 3,253-crore for FY 10 as against Rs 2,988-crore last fiscal," the source said.
"Indian Oil Corporation is fourth in the list while Bank of Baroda (BoB) is seventh, both of them public sector units" the source said.
Standard Chartered Bank and HDFC Bank also figure amongst the top ten at fifth and sixth spots respectively, the source said.
In Q4 FY 10, SBI paid Rs 1,857-crore as against Rs 1,810-crore in the year-ago period, while LIC paid Rs 864-crore in the same quarter against Rs 810-crore in the year-ago period.
Reliance Industries paid Rs 770-crore in Q4 FY 10 as against Rs 365-crore in the year-ago period.
Fourth-placed IOC shelled out Rs 1,505-crore for the
fiscal as against Rs 150-crore last fiscal. In Q4 FY 10, it paid Rs 275-crore as against Rs 150-crore.
Two foreign banks, Citibank and HSBC as also domestic player Bank of India (BoI) have paid lesser this year, the source said.
Citibank's contribution to the national coffer has significantly reduced to Rs 150-crore in Q4 FY 10 as compared to the Rs 1,010-crore it paid in the year-ago period. The banking major made a total payment of Rs 800-crore for the year (FY 10) down substantially from the Rs 1,710-crore it paid last year.
HSBC's yearly payment has reduced to Rs 835-crore from the Rs 1,375-crore it made in the previous fiscal while its Q4 payment stands at Rs 190-crore as compared to Rs 350-crore it paid in the year-ago period.
Bank of India has paid Rs 702-crore for FY 10 as against last year's Rs 1,172-crore while India's largest private sector bank, ICICI Bank, too has paid less at Rs 1,502-crore against last year's Rs 1,709-crore.
Tata Steel's contribution for this fiscal stands reduced to Rs 1,793 as compared to...

Remuneration

Remuneration to Partners – Clause 15 – S. 40

According to existing provisions, payment of remuneration to working partner is allowed as deduction; professional firm and other firms are treated separately. Clause 15 of the Finance Bill proposes to make upward revision of existing limits of remuneration on uniform bases as under for both types of firms:

(i)	If book profit is negative	Rs 1,50,000
(ii)	Incase book profit is positive On First 3 lakh of Book profit or loss.	Rs.1,50,000 or 90% 90 whichever is more
	On Balance	At 60%

The Amendment will take effect from 1-4-2010 (A.Y. 2010-11) onwards.

E filing process

Below is the Chart on electronic filing of Income Tax Return. Click on the respective topic for more details.

TDS w.e.f 01.07.2010

Major Tax related updates:

Direct Tax Code implementation expected by April 2011

Goods and Services Tax implmentation postponed to April 2011

Saral-II (2 Page Income Tax Return) Form comes for simple I-T return filing of Salaried individuals.

Tax rates - income limits extended drastically:

In case of Male

Up to 1.6 Lakhs => 0%

Up to 5 Lakhs => 10%

Up to 8 Lakhs => 20%

Above 8 Lakhs => 30%

In case of Female

Up to 1.9 Lakhs => 0%

Up to 5 Lakhs => 10%

Up to 8 Lakhs => 20%

Above 8 Lakhs => 30%

In case of Senior Citizens

Up to 2.4 Lakhs => 0%

Up to 5 Lakhs => 10%

Up to 8 Lakhs => 20%

Above 8 Lakhs => 30%

New section 80CCF: 20 Thousand deduction for investments in Infrastructural Bonds

TDS late payment interest rate raised from 1 to 1.5% per month. (Section 201 Amendment)

Companies => Surcharge rate reduced from 10 to 7.5%

Minimum Alternate Tax rate changed from 15 to 18%

Form 16/16A continues as earlier.

No change in Service Tax rate. Additonal services added to increase the revenue.

Treshold Limits for TDS extended as below:

194B (Lotteries) => 10,000 (earlier 5,000)

194BB (Horse Race) => 5,000 (earlier 2,500)

194C (Contracts) => 30,000 (earlier 20,000)

Multiple transactions together, it is 75,000 (earlier 50,000)

194D (Insurance Commission) => 20,000 (earlier 5,000)

194H (Commission/Brokerage) => 5,000 (earlier 2,500)

194I (Rent) => 1,80,000 (earlier 1,20,000)

194J (Technical/Professional Fee) => 30,000 (earlier 20,000)

Tally tips

1. Name & Mailing Name

Did you know the difference between Name & Mailing Name fields available in the company creation screen?

The name provided in the Name field is displayed in the Select Company screen and is used to access the Company in Tally.ERP 9. Where as the Name entered in Mailing Name field will be printed and displayed in all the output reports of a company.

Example: Name – ABC (HO)

 

Mailing Name – ABC Company Limited 

2. Financial Year & Books Beginning from

Did you know the difference between the Financial Year from and Books beginning from fields in the Company Creation screen?

Financial Year From: This field indicates the commencement of the financial year for a company, in this case, 1st April 2009.

Books beginning From: The date entered in this field will restrict the user from passing any entry prior to the date mentioned. In other words, vouchers cannot be recorded prior to 1st July 2009, though the financial year begins from 1st April 2009.

3. Delete a line in a voucher
Did you know the shortcut key to delete a line in a voucher is Ctrl + D?

 Simple, Highlight the required line and press Ctrl + D

4. Bank Reconciliation – Effective Date

Did you know how the effective date in Bank Reconciliation feature works?

Use an Effective Date for Bank Reconciliation: A company has data for the current year and/or previous year and wants to use the bank reconciliation facility from a cut off date say 1st August 2009.  By specifying the date in Effective date for Reconciliation field, vouchers for reconciliation will be considered only from the date specified.

5. Recall Reconciled Vouchers

Did you know that you can recall reconciled vouchers?

Use the F12: Configure feature to recall the reconciled vouchers of a Bank reconciliation statement to modify or clear the dates for fresh reconciliation.
 

6. Create Multiple Groups / Ledgers

Did you know that you to create multiple groups or multiple ledgers from a single screen?

From the Gateway of Tally > Accounts Info > Groups > Create (Multiple Groups) Multi Ledger Creation screen is displayed:

7. Create Multiple Aliases for Ledgers

Did you know that Tally.ERP 9 allows you to create multiple aliases for ledgers and assign codes (optional)?

During voucher entry you can select either name of the ledger or any one of the alias.

8. Navigation of Vouchers in Day Book using Page Up and Page Down keys

Did you know that you can view the details of the current voucher in any report?

To view the details of a voucher in a report, highlight the transaction and press Enter. You can press the Page Down key to view the details of the next transaction and press the Page Up key to view the details of the previous transactions.

In Day Book press Enter over Sales Voucher No.1, press Page Down to view the next transaction (Sales Voucher No. 2) or press Page Up to view the details of the previous transaction (Receipt No 2).


9. New Company with same Configuration

Did you know that you can create a new company with the same configuration?

To create a new company with the same configuration F11: Features and F12: Configurations follow the steps shown:

• Create a Company.
• Set the required F11: Features and F12:Configurations as required
• Keep the company loaded
• Create another company
• The new company created will have the same features and configurations

10. Removing a Line and bringing it back in a report

Did you know that you can remove a line and bring it back in Tally.EPR 9?

This feature can be used to hide a group, ledger and stock item you can press Alt+R, to recall the hidden line press Alt+S and to recall the lines in order of removal press Alt+U

Tally shortcuts

Here is the list of interesting shortcuts about Tally
After reaching to to Tally you can find which command you have to give by looking around on Tally panel. Hot keys are defined in four different ways in Tally.

1. They are in red color in menu items. By pressing them you would get the desired menu or screen. Pressing 'B' at Gateway of Tally would bring to balance sheet
2. Another keyboard command are with function keys like F(n) in top panel or in buttons in side bar. these commands can be invoked by pressing the relevant function key. e.g. F12= Configuration
3. Hot function key with Under line can be accessed by pressing Alt+F(n) keys. e.g. Alt+F12 = Range
4. Hot function keys with Double Underline can be accessed by pressing Ctrl+ F(n) key. Ctrl+F12 = Value
5. Except this there are certain shortcuts which are always applicable and of great use. e.g. Alt+C would create master

Online Return filing VAT/CST

Payment of Taxes and Submission of Returns

This part deals with procedures for payment of tax and submission of returns.
When to Pay Your Taxes
You calculate your net tax after subtracting your tax credits from the output tax payable on your turnover of sales. Any positive amount of net tax for a particular tax period must be paid to the DVAT authorities within 28 days from the end of that particular period.
How and Where to Pay Your Taxes
You may pay the tax, together with any interest, penalty or any other amount due from you, in rupees in any of the following ways:
(a) cash;

(b) crossed cheque; or

(c) bank draft made in favour of "Commissioner Delhi Value Added Tax", and drawn on an authorised bank

Such amounts may be paid in any of the above-mentioned ways accompanied by a tax deposit challan (Form DVAT-20) at:
(a) a Delhi branch of the Reserve Bank of India;

(b) a Delhi branch of an authorized Bank;

(c) any other place notified by the Commissioner.


We may provide separate procedures for method of payment in electronic form.

Ratio analysis

Ratio Analysis Techniques
Ratio Analysis: It is concerned with the calculation of relationships, which after proper
identification & interpretation may provide information about the operations and state of
affairs of a business enterprise. The analysis is used to provide indicators of past
performance in terms of critical success factors of a business. This assistance in decisionmaking
reduces reliance on guesswork and intuition and establishes a basis for sound judgements

E-TDS

e-TDS :

Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to third parties
(deductees) are required to deduct tax at source (Tax Deducted at Source -TDS) from these payments and deposit the same
at any of the designated branches of banks authorised to collect taxes on behalf of Government of India.
They should also furnish TDS returns containing details of deductee(s) and challan details relating to deposit of tax to ITD.


The data structure (file format) in which the e-TDS / e-TCS return is to be prepared has been notified below:

(a) Annual e-TDS return:

* File Format for Form 24
* File Format for Form 26
* File Format for Form 27

(b) Annual e-TCS return:

* File Format for Form 27E

(c) Quarterly return:

* File Format for Form 24Q
* File Format for Form 26Q
* File Format for Form 27Q
* File Format for Form 27EQ

Data structure for Form 24Q of the quarter ending 31-March