Avoide Penalties, Issue TDS Certificate on or before 30th July, 2014 of Q1 for Asstt. Year 2015-16

Now a days all TDS Deductors want to avoide every consequences arising on behalf of this matter from Income Tax Department, therefore issue TDS Certificate on or before 30th July, 2014 of Q1 for Fin. Year 2014-15 and Asstt. Year 2015-16. The Last date to issue a TDS/TCS Certificates for Q1 of Fin. Year 2014-15 is 30th July, 2014.  This last/due date is applicable for all deductors who are other than the office of the Government.

Delay in requesting certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted.

Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):

Default/ Failure
Nature of Demand
Quantum of demand or penalty
Failure to deduct tax at source
Tax demand
Equal to tax amount deductible but not deducted

@1 % p.m. of tax deductible

Equal amount of tax deductible but not deducted
Failure to deposit tax at source
Tax demand
Equal to tax amount not deposited
@1.5% p.m. of tax not deducted
Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine
Failure to apply for TAN No. u/s 203A
Rs. 10000
Failure to furnish prescribed statements u/s 200(3)
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to issue TDS certificate u/s 203
Rs. 100 every day during which the failure continues subject to maximum of TDS amount.
Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C)
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to mention PAN of the deductee in the TDS statements and certificates
Rs. 10000

If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.

Please note:
It is now mandatory for all the deductors to issue the TDS certificates after generating and downloading the same from “TRACES”(www.tdscpc.gov.in). Refer to Circular no.3/2011 dated 13-5-2011, Circular No.1/ 2012 dated 9-4-2012 (in respect of 16A)

Download Form-16A from TRACES (Click Here)

PAN Lost, Damages or Correction, How to get New or Reprint Copy of PAN ?

Now in India it is a very common problem and equal truth that missing or lost including Damages or Correction in PAN.  Apart from this we all very well known about importance of PAN Card in our daily life. So, a person really feel anxiety if he/she has lost or has some not the PAN card he/she had. In this matter frequently asked question by many persons is that -
” I have lost my PAN card, how can I apply for the duplicate card ?.
There are two simple solution in this regard that-
  1. By getting reprint of PAN card manually, and
  2. By applying online.
Manual Way to get reprint of PAN Card :
  • Visit nearest office of NSDL or UTITSL office and ask for the application form called “Request for New PAN Card or/and Changes or Correction in PAN data” .
  • Fill it up, pay the Fee of Rs 94 & submit to the office of NSDL or UTITSL.
  • Wait for a month.
Online way to get reprint if PAN card :
Step 1 :
Click NSDL Link for online Reprint Forms . You will get a page where go down to below , you will find a filed for selecting your status i.e whether you want PAN for individual or Firm or other. Like below photo

Once you select your online form , form REPRINT of PAN card will come on screen.

Step 2 :
Most Important to remember here is that since you just want reprint of your lost PAN card , fill all fields in the Form but do not select any box on left margin.

Step 3 :
Pay the fee of Rs 94 by bank transfer or credit card. For person who are abroad, will have to pay Rs 944

Step 4:
On successful payment , an acknowledgement screen will come , which must be printed out. Note down Acknowledge Number for future correspondence.

Step5 :
Affix a a recent colour photograph (3.5 cm x 2.5 cm) , Sign the form and send on following address
National Securities Depository Limited, 3rd floor, Sapphire Chambers, Near Baner Telephone Exchange, Baner, Pune – 411045′.

Step 6:
Do not forget to write on Envelop “‘APPLICATION FOR PAN CHANGE REQUEST-Acknowledgment Number’ (e.g. ’APPLICATION FOR PAN CHANGE REQUEST-881010200000097′).

How to check the status of PAN application ?
  • Check after one month
  • Check your status of application by SMS as under
NSDLPAN Acknowledgement No. & send to 57575

Interest of PPF for Fin. Year 2014-15 is 8.7% P.A.

The Interest rate for Fin. Year 2014-15 is 8.7% which is notified by Central Government for Public Provident Fund.  This is notified rate of Interest on Subscriptions made to the fund on or after 01.04.2014 and balances at the credit of subscriber.  This Interest rate is as for the Fin. Year 2013-14.


NOTIFICATION NO. GSR 496(E) [F.NO.6-1/2011-NS-II (PT.II)], DATED 11-7-2014

In pursuance of section 5 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby notifies that the subscriptions made to the Fund on or after the 1st day of April, 2014 and the balances at the credit of the subscriber shall bear interest at the rate of 8.7 per cent.

Online Income Tax Calculator for All Taxpayee for Asstt. Year 2015-16 & More.

Finance Minister announced Union Budget-2014 with little changes in Income Tax Exemption regarding Allowances & Perquisites, Deductions u/s. 80C & Others. Income Tax Department has developed Income Tax Calculator for Asstt. Year 2015-16 for all Taxpayee.

To provide relief to small and marginal tax payers, personal income tax exemption limit is being raised from Rs. 2 lakh to Rs. 2.5 lakh. For senior citizens, the exemption limit will be Rs. 3 lakh. Further, the investment limit under Section 80C of the Income-tax Act is being raised from Rs. 1 lakh to Rs. 1.5 lakh. Deduction limit for interest on housing loan (for self-occupied house property) goes up from Rs. 1.5 lakh to Rs. 2 lakh.  These changes is applicable for Fin. Year 2014-15 & Asstt. Year 2015-16.  The Online Income Tax Calculator for Asstt. Year 2015-16 for all Taxpayers is as under :


Free Download Updated Income Tax Calculator with Income Tax Slab for A.Y. 2015-16 (Click Here)

Important Instruction to file Wealth Tax Return in Form-BB

Income Tax Department has published an Instructions for filing up Return of NET WEALTH (Form-BB) which are helps while filing of Net Wealth Tax Return in Form-BB.  The all detailed instructions are as follows:

(To be detached before filing the return in a paper form)

This form is to be filled up by all wealth-tax assessees [individual, Hindu Undivided Family (HUF) or company]. This form is applicable for assessment years 2014-15 and subsequent years.

These notes are meant to help you in filling up this return form. They are not a substitute for law. Notes are given only in respect of items that need some explaining.

  • Every individual or HUF or company, whose net wealth exceeds the maximum amount which is not chargeable to wealth tax is obligated to furnish his return of net wealth.
  • This is an annexure-less return and shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax and interest paid, or any document or copy of any account or form of report of valuation by registered valuer required to be attached with the return of net wealth under any provisions of the Wealth-tax Act, 1957. In case return is filed in paper form, all such documents enclosed with the return will be detached and returned to the person filing the return.
  • This return shall be furnished electronically under digital signature. However, for assessment year 2014-15, an individual or a Hindu Undivided Family to whom the provisions of section 44AB of the Income-tax Act, 1961 are not applicable may furnish this return in paper form. From the assessment year 2015-16 and subsequent assessment years, this return form shall be furnished by all assessees electronically under digital signature.
  • All Parts and Columns must be filled in the manner provided hereunder. If any Part or column does not apply, please mention NA (Not Applicable) and do not put any mark or symbol. 
  • In case of return filed in paper form, if space provided under any item of the Return Form is found insufficient, then give the computation in respect of such item on separate sheet(s) using the columns indicated for the purpose under the said item in the Return Form and attach that to the Return. The sum totals of such computation done should be indicated in the columns provided under the relevant item in the Return Form. Similarly, any other information asked for in this Form, which cannot be completely furnished on account of paucity of space, may be furnished on a separate sheet.
  • Sections referred in these instructions are the sections of the Wealth-tax Act, 1957 and references to rules are references to the rules of the Wealth-tax Rules, 1957.
Computation of net wealth
  • Value of an asset, for an assessment year is to be declared as on the valuation date. Valuation date in relation to an assessment year under the Wealth-tax Act, 1957 means the last day of the previous year as defined in section 3 of the Income-tax Act, 1961. Thus, for the Assessment Year 2014-15, the valuation date will be 31.3.2014.
  • Value of an asset, other than cash, is to be determined on the basis of the rules in Schedule III to the Wealth-tax Act, 1957.
  • In the computation of net wealth including net wealth of other persons includible in assessee¡¦s net wealth on the valuation date, the assessee is to furnish in the given columns details of all immovable and movable property held by him and held by any other person which are includible in his/her net wealth of the valuation date.
  • Details of immovable properties mentioned in section 2(ea) of the Wealth-tax Act, 1957 held by the assessee or by any other person includible in his/her net wealth on the valuation date are:-
Any building or land appurtenant thereto (hereinafter referred to as ¡§house¡¨) whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometers from local limits of any municipality (whether known as Municipality, Corporation or by any other name) or a Cantonment board, but does not include -
  1. a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than ten lakh rupees
  2. any house for residential or commercial purposes which forms part of stock-in-trade;
  3. Any house which the assessee may occupy for the purposes of any business or profession carried on by him.
  4. any residential property that has been let out for a minimum period of the three hundred days in the previous year;
  5. Any property in the nature of commercial establishments or complexes;
        "Urban land" means land situate-
        (i)  in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand; or
        (ii) in any area within the distance, measured aerially,-
             (I)   not being more than two kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ten thousand but not exceeding one lakh; or
             (II)  not being more than six kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than one lakh but not exceeding ten lakh; or
             (III) not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ten lakh,
        The definition of urban land excludes the following:
        (A) Land classified as agricultural land in the records of the Government and used for agricultural purposes;
        (B) Land on which construction of a building is not permissible on account of any law or the time being in force;
        (C) Land occupied by any building which has been constructed with the approval of the appropriate Authority.
        (D) Unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him;
        (E) Any land held by the assessee as stock-in-trade for a period of ten years from the date of its acquisition by him; and
Details of assets belonging to any other person but includible in net wealth of the assessee:
  1. Assets transferred to certain relatives or to other persons for the benefit of those relatives or assets transferred under revocable transfer. [Section 4(1)(a)(i), 4(1)(a)(iii), 4(1)(a)(v), 4(1)(a)(vi)].
  2. Assets held by a minor child not being a married daughter of such individual except assets acquired by the minor child from his income referred to in the proviso to subsection (IA) of section 64 of the Income-tax Act, and held on the valuation date. Where the marriage subsists, these assets are includible in the hands of the parent, whose net wealth is greater, and where the marriage does not subsist, in the net wealth of the parent maintaining the minor child.
  3. "Assets held by a physically or mentally handicapped minor child as specified in section 80U of the Income-tax Act, will not be clubbed with the net wealth of the parent."
  4. Interest of a minor child admitted to the benefits of partnership in the assets of a firm. [Section 4(1)(b)]
  5. Individual property of assessee converted into the property of Hindu Undivided Family after 31.12.1969. [Section 4(1A)].
  6. Moneys gifted by means of book entries [Section 4(5A)].
Clause (m) of section (2) of the Wealth-tax Act provides that only debts which have been incurred in relation to the assets assessable to wealth-tax will be allowed to be deducted in computing the net wealth.

Under the provisions of section 6, in the case of an individual who is not a citizen of India or of an individual or Hindu Undivided Family not resident in India or resident but not ordinarily resident in India, or of a company not resident in India during the year ending on the valuation date, the value of assets located outside India is not to be included in the net wealth.

All sheets must be signed by the assessee.

SHEET - 1Part A-GEN (Personal Information, Filing Status):
  • It is compulsory to quote PAN.
  • Use block letters only throughout to fill in this form.
  • Please tick „Ñ appropriate box.
  • State the section under which the return is filed. In case of revised return, please furnish Receipt No. and date of filing.
Part B-NW (Computation of net wealth): Against items 1 to 5, transfer the appropriate figures from the appropriate items of applicable schedules, as indicated.

Part B-TNW (Computation of tax liability on net wealth): Mention amount payable against item 5 and refundable amount against item 6. As the refund, if any, shall be directly deposited into the bank account of the assessee, it is mandatory to furnish the requested details of bank account against item 7.

Part B-TP (Details of Tax and Interest paid): Furnish the correct BSR Code of the bank branch, date of deposit (in the DD/MM/YYYY format) and Challan Serial Number as mentioned in challan.
VERIFICATION: Read the instructions below the verification carefully before signing it. Fill all the relevant columns in the verification. Give the place and date as indicated.
Schedule IP (Immovable Property):
  • Furnish the details of all immovable properties, mentioned in section 2(ea)(i) or section 2(ea)(v), held by the assessee whether located in or outside India. Value of immovable property should be declared as per the relevant rules of Schedule III to the Wealth-tax Act, 1957.
  • In Sl. No.1, 2 and 3, furnish complete description, address including of all immovable properties.
  • In Sl. No.4, indicate the value of the immovable property as calculated on the basis of provisions of the relevant rules of Schedule III to the Wealth-tax Act, 1957.
  • In Sl. No.5, indicate the amount of debts owed, if any, separately in relation to each of the immovable property.
  • In Sl. No.7, 8 and 9, in case of valuation by registered valuer, furnish the name of registered valuer, registration number of the valuer and the date of report of the valuer.
Schedule MP [Movable Property (other than jewellery, etc.)]: Furnish the value as per the relevant rules of the Schedule III to the Wealth-tax Act, 1957 and debt owed in relation to motor cars, referred to in section 2(ea)(ii), yacht, etc. referred to in section 2(ea)(iv) and cash in hand referred to in section 2 (ea)(vi).

SHEET - 3Schedule JE (Jewellery, etc.):
  • Furnish the details of all items of jewellery, bullion, etc. referred to in section 2(ea)(iii) in this schedule.
  • In Sl.No.1 to 5, furnish the complete description, weight, etc. of precious metal and precious or semi precious stone.
  • In Sl.No.6 to 8, furnish the value of jewellery as per as per the relevant rules of the Schedule III to the Wealth-tax Act, 1957.
  • As per rule 18(2) of the Schedule III to the Wealth-tax Act, 1957 the return of net wealth is required to be supported by a statement in the prescribed form, if the value of the jewellery on the valuation date does not exceed Rs. 5 lakhs or the report of the registered valuer in the prescribed form, if the value of the jewellery on the valuation date exceeds Rs. 5 lakh. 
  • The statement or the valuation report as mentioned in Rule 18(2) of Schedule III to the Wealthtax Act, 1957 is not required to be furnished along with the return but the details of valuation report i.e. the name of registered valuer, registration no. of the valuer and the date of report are required to be filled in Sl.No. 9 to 11.
Schedule INW (Includible net wealth of other person): Mention the name of the person, relationship, PAN, value, etc. in respect of assets belonging to any other person but includible in the net wealth of the assessee.

Schedule IFA [Interest held in the assets of a firm or association of persons (AOP) as a partner or member thereof]:

Furnish following details in respect of interest held as partner in a firm or as a member of an AOP:-
  1. Name and address of each firm in which interest is held as a partner.
  2. Name and address of each firm(s)/AOP(s) in which interest is held as a member.
  3. PAN of Firm(s)/AOP(s)
  4. Name of other partners/Members
  5. Assessee¡¦s Profit Sharing Ratio in percentage.
  6. The value of the interest in the firm or AOP is to be determined as per relevant rule of Schedule III to the Wealth-tax Act, 1957.
  7. Debt owed, if any, in relation to meet interest is to be shown separately for each firm(s)/AOP(s).
The value of the interest of a minor child in the assets of a firm in which he is admitted to the benefit of partnership in such a firm is to be included in the assessee¡¦s net wealth under the provisions of the proviso to section 4(1)(b), should also be indicated at (i) above.

Schedule ACE [Assets referred to in section 2(ea) which are claimed as exempt under section 5]: Furnish the details of assets exempt under section 5 of the Wealth-tax Act, 1957. These are as nder:-
  • Any property held by the assessee under trust or other legal obligation for any public purpose of a charitable or religious nature in India.
  • The interest of the assessee in the coparcenary property of any HUF of which the assessee is a member, since the asset is already liable to tax in the hands of the HUF.
  • Any one building which was in the occupation of a Ruler, which before the commencement of the Constitution (Twenty-sixth) Amendment was declared as his official residence.
  • Jewellery in the possession of a Ruler, not being his personal property, and recognised by the government as his heirloom or which the Board had recognised as his heirloom at the time of his first assessment to wealth-tax.
  • Moneys and value of assets, or the value of assets acquired by a person of India origin or citizen of India who was residing outside India if he returns to India with the intention of permanently residing in India. The exemption is provided for a period of seven successive assessment years commencing with the assessment year next following his return to India. 
  • In case of individual or HUF, one house or part of a house or a plot of land comprising an area of five hundred square meters or less.
Schedule OPR (Other properties):
This schedule is to be filled only by an individual or a HUF. A company is not required to fill this schedule.

In this schedule, furnish the complete details of all immovable and movable property held by the assessee, as on the valuation date, other than the following:
  • assets which are liable for Wealth tax Act, 1957, the details of which are already required to be furnished in other schedules of this return form.
  • assets claimed as exempt under section 5, the details of which are required to be furnished in Schedule ACE;
  • assets located outside India and are excluded under section 6 based on the citizenship or residential status of the assessee; or
  • assets being part of business or profession which is subject to audit under section 44AB of the Income-tax Act, 1961.
Free Download Form-BB (to file Wealth Tax Return)

Two way Income Tax benefits of Children's Education Loan with extended limit for Asstt. Year 2015-16.

It is most important part to take Income Tax Relief by two way on only "Children's Education Loan".  Now, a days the Education cost is rising continuously.

It’s a matter of concern for all of us. One relief is the tax benefit provided for spending on children’s education. The Income Tax Act provides a direct deduction on account of fees paid for the education of dependent children. The act also provides for deduction on account of interest on loans taken for higher education of children.

Tuition Fees - relief u/s. 80C:

This deduction in respect of school Tuition fees which is covered u/s. 80C of the I-T Act. A Taxpayee parent can claim a deduction of payment made for tuition fee to any university, college, school or any other educational institution.

The deduction on payments made towards tuition fee can be claimed up to Rs 100,000 for Asstt. Year 2015-16, together with deduction in respect of insurance, provident fund and pension.

But, there are certain conditions to get this. It can only be claimed in respect of two dependent children and for fees to an educational institution within India and, for tuition fee only. Payment as donation or development fee to an educational institution does not qualify.

Interest on Education Loan - relief u/s. 80E :
Second Tax benefit is deduction on the interest paid for a loan taken for the purpose of higher

As the benefit can be claimed by the parent as well as the child, the person taking the education can start claiming this deduction once he starts earning and paying the interest himself. There is no cap on the amount up to which the deduction can be claimed.

The loan in this regard can be taken from any financial Institution or charitable institution recognized by the central government. It can be claimed on a loan taken for education anywhere in the world.

education. This is available u/s. 80E of the I-T Act. This benefit can be claimed for a loan taken for education of yourself, your spouse, your children and the child for whom you are a legal guardian. It can be claimed for eight years in a row, beginning from the year when the interest payment starts.

Employee P.F. Ceiling Limit increased by Rs. 8500/- i.e. from Rs. 6500/- to Rs. 15000/- for Fin. Year 2014-15.

The Hon'ble Union Minister of Finance in the Budget Speech of 2014-15 has announced enhancement in statutory wage ceiling for enrollment under the EPF and MP Act, 1952 to Rs. 15000/- per month from the current maximum of Rs. 6500/- per month.  On this ground Central Board of Trustees’, Employees' Provident Fund (CBT, EPF) has been issued a circular regarding enhancement of wage ceiling from Rs. 6500/- to Rs. 15000/- per for Fin. Year 2014-15.  This amendments related to the Employees’ Provident Fund Scheme, 1952 (EPF), Employees’ Pension Scheme, 1995 (EPS) Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI) for implementing increase in wage ceiling to Rs. 15,000/- and Minimum Pension of Rs. 1,000/- - issues and modalities.

In view of above, the following preparatory activities are required to be initiated immediately:
  • The total number of establishments in your office be listed out Enforcement Officer wise.  Further, in respect of each establishment "Enforcement Group" and "Enforcement task-id" shall be compulsorily marked in the Application Software;
  • Enforcement officer may be directed to visit the establishment to check the total number of employees drawing salary beyond Rs. 6500/- and upto Rs. 15000/- and not enrolled as members.  The data so collected shall be required immediately after issue of the notification;
  • The tour programme of Enforcement Officer shall be chalked out in such a way that they visit establishments where there is concentration of large number of workers particularly the building and construction industries, placement agencies etc.;
  • Wherever the Enforcement Officers visit the establishment they should also meet the representatives of the workers' unions and apprise then about the said likely notification enhancing the statutory wages ceiling;
  • Meeting may be arranged to apprise the establishment about the intent of the notification and assist them in implementing with same once it is issued.

CBDT constituent Committee to Reduce Tax Disputes cases.

The Central Board of Direct Taxes (CBDT) has constituted a six-member panel vide Office Memorandum [F.NO.279/MISC./M-84/2014-(ITJ)], DATED 17-7-2014 to examine the “efficacy“ of the existing primary litigation mechanism for income tax, taking forward the new government's resolve to bring down tax disputes.

 An estimated Rs. 4 lakh crore of tax revenue is locked up in litigation. The empowered committee has also been mandated to suggest steps to reduce legal cases at the income tax department's two dispute resolution for a and asked to submit its report in eight weeks. Senior Indian Revenue Service (IRS) officer and chief commissioner of the income tax office in Ahmedabad Rani S Nair has been made chairperson of the panel. Five other commissioners, drawn from various field formations of the I-T department, will be members of the panel. The committee would scrutinise close to 7,000 sample cases in the I-T department's dispute resolution fora as part of its task. Over 30,000 cases, in which an amount of Rs. 4 lakh crore is stuck, are pending in these fora, the official added.

“It has been decided to constitute a committee to appraise the efficacy of existing dispute resolution forums of Commissioners of I-T (Appeals) and Income Tax Appellate Tribunal (ITAT) and to suggest steps to reduce litigation before these fora,“ the apex direct taxes body said in a notification. According to the terms of reference issued by CBDT, the committee will carry out detailed analysis of appellate orders and assessment orders on various aspects and recommend steps to reduce litigation before CIT (Appeal). It will also “study the efficacy of existing system of filing appeals to the ITAT by the department and suggest steps to reduce litigation before the ITAT after analysing various aspects“.

There is a four-stage grievance redressal and litigation mechanism available to a taxpayer, beginning with an appeal to the Commissioner of I-T Appeals called CIT (A), up to the ITAT and subsequently to the high courts and the Supreme Court. The CBDT has also asked the new committee to undertake a fresh initiative and categorise and study select assessment orders issued by I-T officers across the country under various income groups (returned income). The categories defined by CBDT include income under Rs. 25 lakh, income between Rs. 25 lakh and Rs. 1 crore, between Rs. 1 crore and Rs. 10 crore, and above Rs. 10 crore. The Office Memorandum regarding Tax Disputes is as follows:
OFFICE MEMORANDUM [F.NO.279/MISC./M-84/2014-(ITJ)], DATED 17-7-2014
It has been decided to constitute a Committee to appraise the efficacy of existing dispute resolution forums of CsIT (A) & ITAT and to suggest steps to reduce litigation before these forums. The composition of the Committee is as follows: 
Sl. No
Ms. Rani S Nair
Chief Commissioner of Income tax- II, Ahmedabad
Ms. Uma Singh
Sh. Rakesh Goyal
CIT-XXI, Kolkata

Sh. D K Mishra
CIT (J), Delhi

Sh. Rajib Hota

Sh. D S Kalyan
CIT(ITAT)-V, Ahmedabad

1.2 The Chairperson may appoint an officer as Member Secretary. The Committee may co-opt other members as it deems fit to have proper representation, co-ordination and feedback from ITAT at non-metro stations.
2. The Committee shall submit its report within 8 weeks from the date of its constitution.
3. The terms of reference of the committee will be as follows.
(i) To carry out detailed analysis of appellate orders and assessment orders, on various aspects as suggested in Para 7 and recommend steps to reduce litigation before the CIT(A).
(ii) To study the efficacy of existing system of filing appeals to the ITAT by the Department and suggest steps to reduce litigation before the ITAT after analyzing various aspects as mentioned in Para 7.
4. The Committee should examine the assessment orders, appellate orders and scrutiny report for the appeal to the ITAT related to orders selected as per guidelines mentioned in Para 5 below and give its recommendations for different income groups as defined in Para 6 separately for corporate and non- corporate assessees.
5. Guidelines to select orders:
(i) Sample should be drawn from the orders passed by the ITAT during the month of June, September, December and March of the FY 2013-14.
(ii) (a) Approximately 200 orders should be selected for study from each of the following 8 major cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad and Bangalore.
(ii) (b) Approximately 150 orders should be selected for study from each of the following stations: Chandigarh, Jaipur, Indore, Lucknow and Kochi.
(iii) As far as possible, orders in cases of corporate and non-corporate assessees should be selected in equal numbers, particularly in Metro charges whereas in non-metro, sample of non-corporate assessees may be larger. It must also be ensured that some orders in search cases are in select basket.
(iv) As number of appeals filed by the Department before ITAT is much larger than appeals filed by the assessee, the order in appeals filed by the Department and by the assessee may be selected in the ratio of 2:1.
6. Analysis should be done and conclusions be drawn separately by categorising assessment orders in various income groups (returned income) as under:
< 25 Lakh
25 Lakh to 1 Crore
1 Crore to 10 Crore
10 Crore and above
7. Within the overall terms of reference, an analysis on the following aspects should be conducted, along with any other that the Committee deems fit:
(i) Assessment Orders: Nature of additions made in general, guidance of supervisory authorities, sustainability of additions in appeal, quality of addition made and average tax effect of additions made in each category at Para 6 above.
(ii) Orders of CIT (A): Whether relief allowed is based on proper marshalling of facts and legal position. The decisions are also to be analysed in the light of the order of the ITAT.
(iii) (a) Authorization by CIT: The filing of second appeal is to be examined as to whether the same is filed mechanically by applying the monetary limits or on sound grounds after examining the merits of each order.
(iii) (b) The Committee should ascertain from the orders of each CIT (A) received during the FY 2013-14 by each administrative CIT under the jurisdiction of CCIT-I & CCIT-VIII Delhi, CCIT-I Ahmedabad, CCIT-II Hyderabad the percentage of appeals filed by the Department in ITAT where the tax effect exceeds monetary limits.
(iv) The success rate of appeals filed by the Department/Assessee before the ITAT to be analysed.
(v) The Committee must also take inputs on relevant issues from DRs in the stations mentioned in Para 5.
8. The Headquarters of the Committee will be in Delhi.

Source: www.taxmann.com

Salary Perquisites u/s. 17(2) for Salaried Employee.

Perquisites mean any casual emoluments, fees or profit attached to an office in addition to salary and wages. In simple words, it’s a personal advantage. It does not cover a mere reimbursement of any expenditure incidental to the employment.

Like if an employee is provided with a watchman for official use there is no personal advantage to the employee, hence there is no perquisites. If the watchman is provided for personal as well as official use, the value of the perquisites only relating to personal use is taxable. Similarly if the travelling bills for official duties are reimbursed to the employee, there is no advantage to the assesse, so it is not a perquisite.

The perquisites may be in cash or in kind or in the money or money’s worth and also in amenities which are not convertible to the money.

All cash allowance is included in the ordinary meaning of perquisites: - all cash allowance is included and hence taxable under section 17(2) of income tax act. City compensatory allowance, bad climate allowance, shift allowance and incentive bonus are included as perquisites under section 17(2) of income tax act.

A perquisite is taxable as salary only when it is provided by the employer during the continuance of employment: - any perquisites allowed by a person other than employer is taxable as income from other sources. For example tips received by hotel waiters from customers are taxable as income from other sources

Non user of the perquisites by an assesse is of no consequences unless the right to perquisites is foregone before it accrues to him: - there may be circumstances under which the employee may not make use of the perquisites provided by the employer. Where the income is accrued or received but it is subsequently given up, it remain the income of the recipient [CIT vs. ShoorjiVallabhdas and co. (1962) 46 ITR 144 (SC)]. The voluntary forgoing by the employee of the salary due to him is normally a mere application of income and the salary is nonetheless taxable. Unless the assesse forgoes his right of the provision of such perquisites before the income accrues, the notional income has to be brought to charge as perquisites equitant to the value of rent free accommodation [CIT vs. Bawa Singh Chauhan (1984) ITR 8].

Wide scope of the inclusive definition of perquisites: - the definition of the perquisites is inclusive but not limited to them only. The scope of an inclusive definition cannot be restricted only to those words which accrue in definition, but with extend to many other things not mentioned in it. Therefore, any other item not listed in the definition of perquisites will have to be evaluated in accordance with the general and commercial meaning of the word perquisites.
Section 17(2) of income tax perquisites includes.
  1. Rent free accommodation under section 17(2) 1
  2. Accommodation in concessional rate of rent under section 17(2) 2
  3. Any benefit or amenity to the specified employee who is either a director of has a substantial interest in the company or whose income under salaries exceeds Rs. 50000 under section 17(2)3
  4. Obligation of the employee paid or reimbursed by the employer under section 17(2)4
  5. Any sum payable by the employer to effect an assurance on the life of the assesse or to effect a contract of annuity under section 17(2) 5
  6. Prescribed fringe benefits or amenity under section 17(2)6
Source: www.caclubindia.com


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