CBDT issued notice to taxpayers who have not filed ITR for Asstt. Year 2014-15

CBDT has noticed that 5,09,898 taxpayers who have submitted an e-return for AY 2011-12 or 2012-13 or AY 2013-14 (Upto 20th October 2014) with returned Income of More than 10 Lakh or paid self assessment tax of more than / equal to one lakh (as per ITR)  have not filed ITR for AY 2014-15.

In this regard, Joint Director of Income tax Systems has issued a letter dated 29.10.2014. The board has desired that CCsIT should personally monitor these cases.

The issued Notice is as under:


Government submits list of foreign bank account holders in Supreme Court

On October 29, 2014 the Central Government has submitted a list of Indians who have got foreign banks accounts in a sealed cover to the Supreme Court. Since 2009, based on a petition filed by senior lawyer, Ram Jethmalani, the Supreme Court has been monitoring the investigations into black money. However, the Supreme Court subsequently questioned the Government why they were providing a protective umbrella to foreign bank account holders and asked the Government to disclose the information of all accounts holders for further probe.

In this regard, the Government named eight people in the top court who are being prosecuted for allegedly hiding undeclared cash in Swiss and other banks.

Both, the previous government and the new BJP government have argued in Court that tax treaties with other countries prohibited the disclosure of names till charges were framed. Critics have accused the Government of using tax treaties as an excuse to shield rich and powerful citizens. India has double tax avoidance treaties with over 80 countries.

Sournce: www.taxmann.com

Download All Audit reports utility for Asstt. Year 2014-15

There are various types of audit report utility on internet, out of them some are payable and a few are free, apart from this, the Income Tax Department has been provided free Java Base applicable utility to taxpayers.  The all audit report details as under :

1. Audit report under section 44AB of the Income-tax Act,1961 in a case where the accounts of the business or profession of a person have been audited under any other law.

2. Audit report under section 44AB of the Income-tax Act,1961, in the case of a person referred to in clause (b) of sub-rule (1) of rule 6G.

3. Report from an accountant to be furnished under section 92E relating to international transaction(s).

4. Report under Section 115JB of the Income-tax Act, 1961 for computing the book profits of the company.

5. Audit report under section 142(2A) of the Income-tax Act, 1961.

6. Audit report under section 12A(b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions.

7. Audit report under section 10(23C) of the Income-tax Act, 1961, in the case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub- clause (v) or sub-clause (vi) or sub-clause (via) of section 10(23C).

Instructions
  • Attachments cannot exceed 50MB.
  • Attachments must be in pdf or zip format.
  • Attachments should be scanned with minimum 300dpi.
  • Wherever there is a requirement in the Form to submit a signed copy of documents by an Assesse/CA as an attachment, upload the scanned copy of the same documents.
Checklist of documents and pre-requisites
  • A copy of last year's tax return
  • Bank Statement
  • TDS certificates
  • Savings certificates/Deductions
  • Interest statement showing interest paid to you throughout the year.
  • Balance Sheet, P&L Account Statement and other Audit Reports wherever applicable.
Download Audit Report Forms (Other than ITR) Utility
Particulars
Form No.
Facility
Audit report under section 44AB of the Income-tax Act,1961 in a case where the accounts of the business or profession of a person have been audited under any other law
3CA-3CD
Audit report under section 44AB of the Income-tax Act,1961, in the case of a person referred to in clause (b) of sub-rule (1) of rule 6G
3CB-3CD
Report from an accountant to be furnished under section 92E relating to international transaction(s)
3CEB
Report under Section 115JB of the Income-tax Act, 1961 for computing the book profits of the company
29B
Audit report under section 142(2A) of the Income-tax Act, 1961
6B
Audit report under section 12A(b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions
10B
Audit report under section 10(23C) of the Income-tax Act, 1961, in the case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub- clause (v) or sub-clause (vi) or sub-clause (via) of section 10(23C).
10BB



Framing of Scrutiny Assessment in cases of estimation of Income who not maintaining books.

CBDT has issued a notification to seeks formation of committee to resolve issue of estimation of income of fish farmers not maintaining books under Section 143 of The Income-Tax Act, 1961 subject to cited as farming of scrutiny assessments in cases of fish farmers involved in running inland fresh water fish tanks.

Representations have been received by the board from various quarters regarding difficulties being faced on account of surveys and income-tax scrutiny assessments by fish farmers, being involved in business and profession of running inland fresh water fish tanks specifically in cases where the books of accounts are not being maintained by the assessees concerned.

Continued ... (Click Here)

7th Pay Commission’s visit to Shimla, Himachal Pradesh on 12th & 13th Nov., 2014

Commission's visit to Shimla, Himachal Pradesh

The Commission, headed by its Chairman, Justice Shri A. K. Mathur, proposes to visit Shimla, Himachal Pradesh from 12th to 13th November, 2014. The Commission would like to invite various entities/associations/federations representing any/all categories of employees covered by the terms of reference of the Commission to present their views.

Your request for a meeting with the Commission may be sent through e-mail to the Secretary, 7th Central Pay Commission at secy-7cpc@nic.in. The memorandum already submitted by the requesting entity may also be sent as an attachment with this e-mail.

The last date for receiving request for meeting is 7th Nov. 2014 (1700 hours).

Download Conso File to rectify unmatched Challans in the TDS Return Statement.

An important message has been displayed for the deductors on the TRACES website regarding downloading of conso file.

The displayed message has been given below:

Attention Deductors: Your request for download of Conso File will not be accepted in case there are unmatched challans in the selected statement. Please match all challans through Online Correction before submitting request for Conso File.

This means that if there are any unmatched challans in the TDS statement filed by the deductor, the correction statement for that TDS statement cannot be filed for such regular statement for errors such as PAN Error, Short deduction due to incorrect reporting of certificates, interest and late fee payments etc. The correction statement will be filed only when all the challans in the statement are matched.

This may arise a question that how will the unmatched challans be matched in absence of download of conso files for correction of statements.

For this purpose, CPC (TDS) has provided an utility called Online Challan Correction through which any mismatch in challans in the statements filed by the deductors can be corrected through the online mechanism on the CPC (TDS) website itself.

Download e-Tutorial for Online Challan Correction.

Free Download Tax Calculation Utility and monthwise salary details for Asstt. Year 2015-16

Many Tax Calculation utility on Internet, apart from this accurate Tax Calculation utility for Salaried Employee can't provide these with monthly salary statement.  Now, calculate Proper TAX to deduct as TDS from monthly salary with Monthwise salary Statement.   This utility calculates Annual Income Tax Liability and suggest to deduct as TDS from salary. 

What are the Income Tax Exemption Limit for Asstt. Year 2015-16, Click Here.

Maximum exemption limits under chapter VIA to calculate  Income Tax for Asstt. Year 2015-16  Click Here.


Latest TDS amendments effected from 01.10.2014 & TDS Rate for Asstt. Year 2015-16.

What are the Penalties and prosecution, Click Here

Tax Calculation Method:


HRA exemption = Least of (40% (50% for metros) of Basic+DA or HRA or rent paid - 10% of Basic+DA)

Transport allowance is exempt up to Rs.800/- per month during the month. (Expenditure incurred for covering journey between office and residence.)  For people having permanent physical disability, the exemption is 1,600/- per month.

Reimbursement of Medical bills are exempt for self and dependent family, up to Rs.15,000/- per annum u/s(5) LTA is exempt to the tune of economy class Train/ Air /Recognised public Transport fare for the family to any destination in India, by the shortest route.

LTA can be claimed twice in a block of 4 calendar years. The current block is from 01.01.2010 to 31.12.2013. For claim, it is must to provide originals tickets etc.

U/s 24 There is an Exemption for interest on housing loan. (for Self occupied Residence). If the loan was taken before Apr 1, 1999 exemption is limited to Rs. 30,000/- per year. If the loan was taken after Apr 1, 1999 exemption is limited to Rs. 2,00,000/- per year if the house is self-occupied; There is no limit if the house is rented out.

This exemption is available on accrual basis, which means if interest has accrued, you can claim exemption, irrespective of whether you've paid it or not..                            "

If you have rented out your house, enter the total income / loss from the house (after deducting property tax and standard maintenance expenses).

U/s 80CCE- Maximum Exemption up to  Rs. 150000/-  Investments up to Rs. 1.5 lac in PF, VPF, PPF, Employee contribution in NPS,Insurance Premium, Housing loan principal repayment, NSC, ELSS, long term bank Fixed Deposit, Post Office Term Deposit, etc. are deductible from the taxable income. There is no limit on individual items, (for example) all 1 lac can be invested in NSC or PPF etc.
 
U/s 80CCD -The Finance Act, 2011 provides that contribution made by the Central Government or any other employer to NPS (up to 10 per cent of the salary of the employee in the previous year)shall be excluded while computing the limit of Rs. 1,50,000.The contribution by the employee to the NPS will be subject to the limit of Rs. 1,00,000.

U/s 80CCG - Rajiv Gandhi Equity Savings Scheme is a new exemption available for investment in stock markets (direct equity). Avaialble only for those with gross income less than 12 lacs and only for first time investors in stock market. Exemption available at 50% of investment subject to maximum of Rs.50,000/- invested. Investments are locked-in for three years

U/s 80D Medical Insurance Premium (such as Mediclaim & Critical illness Cover)& Health Check up Upto Rs. 5000, premium is exempt up to Rs. 30,000/ per year (Rs.15,000/- for self,spouse and children ) (Rs. 15000/- for Parents. If the premium includes for a dependent who is (Senior Citizen) above 60 years of age, an extra Rs. 5,000//- can be claimed.

U/s 80DD Deduction in respect of medical treatment of handicapped dependents is limited to Rs. 50,000/- per year if the disability is less than 80% and Rs. 1,00,000/- per year if the disability is more than 80%

U/s 80DDB Deduction in respect of medical treatment for specified ailments or diseases for the assesse or dependent can be claimed up to Rs. 40,000/- per year. If the person being treated is a senior citizen, the exemption can go up to Rs. 60,000/-. but any amount received under Medical Insurance Policy will be reduced from the amount of deduction allowed. The Diseases and ailments specified under rule 11DD are.
  1. neurological diseases being demetia, dystonia musculorum deformans, motor neuron disease, ataxia, chorea, hemiballismus, aphasia and parkisons disease,
  2. cancer,
  3. AIDS,
  4. Chronic renal failure,
  5. hemophilia, and 
  6. thalassaemia.
U/s 80E Interest repayment on education loan (taken for higher education from a university of self & dependents) is completely tax exempt

U/s 80G Donations given for certain charities are tax exempt. Some(NGO,Trust etc.) are exempt to the tune of 50%, whereas Govt funds are 100%.

U/s 80GG If you are not getting  HRA, but living in rented house, an exemption is available. This will be calculated as minimum of (25% of total income or rent paid - 10% of total income or Rs. 24,000/- per year)

U/s 80U who suffers from not less than 40 per cent of any disability is eligible for deduction to the extent of Rs. 50,000/- and in case of severe disability to the extent of Rs. 100,000/-

U/s 80TTA introduced through Finance Act, 2012. Section 80TTA provides a deduction of up to Rs. 10,000 on your income from interest on saving bank accounts.

DEDUCTION u/s. 80C and chapter VIA
U/s. 80C of the Income Tax Act allows certain investments and expenditure to be deduct from total income. One must plan investments well and spread it out across the various instruments specified under this section to avail maximum tax benefit. There are no sub-limits and is irrespective of how much you earn and under which tax bracket you fall. Most of the Income Tax payee try to save tax by saving under Section 80C of the Income Tax Act.  However, it is important to know the Section in total. so that one can make best use of the options available for deduction under income tax Act. One important point to note that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions.

Qualifying Investments u/s 80CCE
  • Provident Fund (PF) & Voluntary Provident Fund (VPF) PF is automatically deducted from your salary. your contribution [12% of Basic] (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.
  • Life Insurance Premiums: Any amount that you pay towards life insurance premium in Life Insurance Corporation (LIC) or any other Insurance CO.for yourself, your spouse or your children can also be included in Section 80C deduction. If you are paying premium for more than one insurance policy, all the premiums will be included. also premium paid for ULIP will also be treated as Premium paid for Life Insurance Policies.
  • Unit linked Insurance Plan : ULIP stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments.They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.
IMP : Total Amount Received at Maturity, Survival Benefits, Withdrawal in Insurance Policies is Tax Free and fully exempted u/s 10(10D).
  • Public Provident Fund (PPF): Among all the assured returns small saving schemes, 
  • Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs. 500 and maximum is Rs. 1,50,000.(New Change) from Budget 2014
  • National Savings Certificate (NSC): National Savings Certificate (NSC) is a 5-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is  8.58% compounded half-yearly, i.e. If you invest Rs.100, it becomes Rs.150.90 after five years. The interest accrued every year is liable to tax (i.e. to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.
  • Home Loan Principal Repayment & Stamp Duty and Registration Charges for a home Loan The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.
  • Tuition  fees  for 2 children  Apart form the above major investments expenses for children’s education (Only Tution Fee (for which you need receipts)), can be claimed as deductions under Sec 80C.
  • Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.
  • 5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.
  • 5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per cent rate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.
  • Pension Funds or Pension Policies – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it means that the total deduction available for 80CCC and 80C is Rs 1.5 Lakh.This also means that your investment in pension funds upto Rs.1.5 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed  Rs.1.5 Lakh.
  • Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.
  • NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.
  • Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.

Download Updated TDS / TAX Calculation Utility for
Asstt. Year 2015-16

Due Date of ST Return 1st Quarter extended to 14.11.2014

CBEC has issued an order to extend due date of Service Tax Return for 1st Quarter to 14.11.2014 vide No. 02/2014-ST dated 24th Oct., 2014 for the period from April-2014 to Septermber-2014.  The Actual due date of Service Tax Return is 25th October, 2014. The extended due date of filing of Service Tax Return order is as under :

F.No.137/99/2011-Service Tax
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

***
New Delhi, the 24th October, 2014

ORDER NO. 02/2014-SERVICE TAX
In exercise of the powers conferred by sub-rule (4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1st April 2014 to 30th September 2014, from 25th October, 2014 to 14th November, 2014.

The circumstances of a special nature, which have given rise to this extension of time, are as follows:
“Natural calamities in certain parts of the country.”

Himani Bhayana
Under Secretary (Service Tax)
Central Board of Excise and Customs

Transport Allowance and Travelling Allowance Rules at a glance

At first glance, both transport allowance and traveling allowance might look the same. But, the two are very different for Central Government employees. Recent spate of orders issued by the DOPT and Finance Ministry on TRAVELLING ALLOWANCE was the inspiration behind this write-up.

In its order last week, the DOPT said that senior officers who have to travel by air for official purposes may not have to submit the boarding passes while settlement of TA claims. They will have to henceforth submit the passes only when required. The very next day, the Finance Ministry issued an order that made it mandatory for senior officials to submit boarding passes alongwith TA bills for air journey performed on Government account.

The concept of Transport Allowance was introduced by the 5th CPC to defray the cost of commuting between residence and office. The 6th CPC while recommending CCA to be subsumed in Transport Allowance. Transport Allowance is given to the Central Government employees for their everyday commute to and from the workplace. Based on their Grade Pay or Band Pay, this could be anything between Rs. 400 to Rs. 3200 per month. It also depends on the population of the city or town where the office is located. Transport allowance is twice the normal amount for physically challenged employees.

Travelling allowance is given to employees who have to travel out of station for official work. There are a number of rules, guidelines and restrictions that control travelling allowance. DOPT and the Ministry of Finance issues amendment orders related to travelling allowances from time to time.

Traveling allowance differs based on the employee’s grade pay. The ‘Grade Pay’ for determing the TA/DA entitlement is as indicated in Central Civil Service(RP)Rules 2008. Depending on the grade pay, the employee has to opt for the appropriate class of accommodation while travelling via bus, train, ship or by aeroplane. The employee can refund only that amount that he is entitlement for. The Finance Ministry order published on 23.9.2008, OM explained the details of the Travelling allowance and entitlements for Government officials as per title given below…
Government officials on Tour: Travelling Allowance and Entitlements, Entitlement for journeys on tour and travel entitlements within the country, International Travel Entitlement, Mileage allowance for journeys by road, Daily Allowance, Travelling allowance on Transfer, Transfer Grant and Packing Allowance, Transportation of Personal Effects, Transportation of Conveyance, Travelling allowance Entitlement of Retiring employees, Lumpsum Transfer Grant and Packing Allowance
Daily Allowance : If the official tour on is of longer duration, then the employee is paid Daily Allowance to meet his boarding and lodging expenses. This too depends on the Grade pay of the employee. This is what is known as TA/DA.

While seeking the TA/DA claims, the employee has to present receipts and bills. In this regard, the notification, that senior officials are not required to submit the boarding passes while seeking reimbursement of their air travel expenses, was confusing. The order is not applicable to Group ‘C’ employees.

But some have misunderstood the order and have assumed that it was for the air travel facility that is available as part of the Leave Travel Concession.

Source: 7thpaycommissionnews.in

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