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Where TDS is applicable and how to avoid it

Salary income: Employer deducts TDS on total income, including income other than salary after taking into account all deductions and exemptions. This saves the individual the hassle of paying tax himself.

TDS rate: As applicable to individual based on his income and deductions.

Interest income: TDS is deducted by banks on FDs and RDs if the interest exceeds Rs 10,000 a year. TDS does not end tax liability. Someone in a higher tax slab will need to pay additional tax. Those in lower income bracket can seek a tax refund.

TDS rate: If PAN has been provided, TDS is 10% of income. Otherwise it is 20% of income.

EPF withdrawals: Withdrawals from Employee Provident Fund are subject to TDS if you withdraw before five years of service. However, no TDS is deducted on withdrawals of less than Rs 30,000.

TDS rate: If PAN has been provided, TDS is 10% of the withdrawal. Otherwise it is 20% of the amount.

Property sale: TDS is applicable if the value of the property exceeds Rs 50 lakh. If instalments are being paid TDS is deducted on each instalment. The buyer must obtain a Tax Deduction Account Number to deduct TDS. TDS has to be de -posited along with Form 26QB within a week from the end of the month in which TDS was deducted. Buyer must give TDS certificate to the seller.

TDS rate: If PAN has been provided, TDS is 1% of sale value. Otherwise it is 20% of the sale value.

On NRIs: NRIs are not permitted to submit Form 15G/H for NRO deposits and TDS is mandatory on all incomes. In case of resident Indians, TDS kicks in only if interest exceeds Rs 10,000 a year. But there are no such threshold for NRO deposits. Easwar committee has recommended easing of TDS rules for NRIs.

TDS rate: 30% on interest income from bank deposits, 20% from corporate deposits, 15% on short-term capital gains if securities transaction tax (STT) has been paid and 10% on longterm capital gains. If no STT is paid on short-term gains, TDS is 30%. Flat rate of 20% on sale of property.

How to avoid it
TDS can be avoided by submitting Form 15G or 15H. Form 15H is for senior citizens. It can be submitted if there is no tax on total income. Form 15G is for everybody else, except NRIs. It can be filed if tax on total income is nil and total interest income is less than the basic exemption limit.

Source:  The Economics Times

Highlights & Theam of Railway Budget 2016-17

Highlights of the Railway Budget 2016-17

Theme of the Budget
  • Overcoming challenges – Reorganize, Restructure Rejuvenate Indian Railways: ‘Chalo, Milkar Kuch Naya Karen’
  • Three pillars of the strategy i.e. Nav Arjan – New revenues, Nav Manak – New norms, Nav Sanrachna – New Structures.
Financial Performance
  • 2015-16- Savings of Rs. 8,720 crore neutralizing most of the revenue shortfall, expected OR 90%;
  • 2016-17- Targeted Operating Ratio (OR) - 92%, restrict growth of Ordinary Working Expenses by 11.6% after building in immediate impact of 7th PC, reductions planned in diesel and electricity consumption, Revenue generation targeted at Rs. 1,84,820 crore.
Investments and Resources
  • Process bottlenecks overhauled including delegation of powers to functional levels; average capital expenditure over 2009-14 is Rs. 48,100 crore, average growth of 8% per annum.
  • 2015-16 investment would be close to double of the average of previous 5 years.
  • 2016-17 CAPEX pegged at Rs. 1.21 lakh crore; implementation through joint ventures with states, developing new frameworks for PPP, etc.
Vision
  • By 2020, long-felt desires of the common man to be fulfilled i.e, reserved accommodation on trains available on demand, time tabled freight trains, high end technology to improve safety record, elimination of all unmanned level crossings, improved punctuality, higher average speed of freight trains, semi high speed trains running along the golden quadrilateral, zero direct discharge of human waste.
2015-16-Achievements
  • Action initiated on 139 budget announcements of 2015-16.
Project execution
  • 2015-16 - assured funding through LIC; commissioning of 2,500 kms Broad Gauge lines; commissioning of 1,600 kms of electrification, highest ever. In 2016-17 - targeted commissioning 2,800 kms of track; commissioning Broad Gauge lines @ over 7 kms per day against an average of about 4.3 kms per day in the last 6 years.  Would increase to about 13 kms per day in 2017-18 and 19 kms per day in 2018-19; will generate employment of about 9 crore man days in 2017-18 and 14 crore man days in 2018-19. Outlay for railway electrification increased in 2016-17 by almost 50%; target to electrify 2,000 kms.
Dedicated Freight Corridor
  • Almost all contracts for civil engineering works to be awarded by March 31st 2016; Rs. 24,000 crore contracts awarded since November 2014 as against Rs. 13,000 crore contracts awarded in last 6 years; propose to take up North-South, East-West & East Coast freight corridors through innovative financing including PPP.
Port connectivity
  • Tuna Port commissioned and rail connectivity projects to ports of Jaigarh, Dighi, Rewas and Paradip under implementation; implementation of rail connectivity for the ports of Nargol and Hazira under PPP in 2016-17.
North East 
  • BG Lumding-Silchar section in Assam opened thus connecting Barak Valley with rest of the country; Agartala brought on to the BG network. States of Mizoram and Manipur shortly to come on BG map of the country with commissioning of the Kathakal-Bhairabi and Arunachal-Jiribam Gauge Conversion projects.
Jammu and Kashmir

  • Work on Katra-Banihal section of Udhampur-Srinagar-Baramulla Rail Link Project progressing satisfactorily- 35 kms of tunnelling out of total of 95 kms completed; Decongestion work on Jalandhar - Jammu line in full swing and doubling of two bridges to be commissioned by March 2016, while the other two bridges will be completed by 2016-17.
Make in India: Finalised bids for two loco factories; proposed to increase the current procurement of train sets by 30%.

Capacity Building for the future through:
  • Transparency – initiated recruitments online in 2015-16, process now being replicated for all positions, social media being used as a tool to bring in transparency, all procurement including procurement of works moved to the e-platform, completed trial of process leading to award of tender electronically and to be rolled out on a Pan-
India basis in 2016-17.
  • Governance - delegation led to compression of project sanction time to 6-8 months from 2 years earlier, key result areas identified to judge performance of GMs and DRMs, performance related MOUs signed with few Zones, to be replicated for all zones.
  • Internal audit measures - specialised teams mandated to screen railway operations in specific areas to detect inefficiencies and prevent wastages, every zone preparing 2 reports by March 31, 2016.
  • Partnerships – Cabinet approval for JVs with State Governments, 17 consented and 6 MOUs signed with State Governments. 44 new partnership works covering about 5,300 kms and valuing about Rs. 92,714 crore have been indicated in the Budget documents.
Customer Interface
  • Interaction and feedback through social media & dedicated IVRS system.
  • Making travel comfortable by generating over 65,000 additional berths, installing 2,500 water vending machines; introducing ‘Mahamana Express’ with modern refurbished coaches; 17,000 bio-toilets in trains; world’s first Bio-Vacuum toilet developed.
  • Improving punctuality – operations audit for Ghaziabad to Mughalsarai section.
  • Ticketing: Introduced 1,780 Automatic Ticket Vending Machines, mobile apps & GoIndia smartcard for cashless purchase of UTS and PRS tickets, enhanced capacity of e-ticketing system from 2,000 tickets per minute to 7,200 tickets per minute and to support 1,20,000 concurrent users as against only 40,000 earlier. 
  • Social initiatives: One-time registration for availing concessions while booking tickets online, online booking of wheelchairs & Braille enabled new coaches introduced for the Divyang, increased quota of lower berths for senior citizens and women, middle bays reserved in coaches for women.
  • Wi-Fi provided in 100 stations, to be provided in 400 more.
  • Stations being redeveloped – financial bid received for Habibganj, Bhopal; Cabinet approval for stations to be taken up under PPP.
  • Security through helplines & CCTVs.
  • Safety - 350 manned level crossings closed, eliminated 1,000 unmanned level crossings, 820 ROB/RUB completed in the current year and work going on in 1,350 of them.
Click here to read Other major achievements

Issue Online TDS Certificate u/s. 195 - CBDT

SECTION 195 OF THE INCOME-TAX ACT, 1961 - DEDUCTION AT SOURCE - NON-RESIDENTS, PAYMENTS TO - ISSUANCE OF ONLINE CERTIFICATE UNDER SECTION 195(2) AND 195(3)

TDS INSTRUCTION NO.51 [F.NO.SW/TDS/02/2013/DIT(S)-II, DATED 4-2-2016

Request has been received from field formations and tax payers to provide functionality for issue of online certificate u/s 195(2) and 195(3) for lower/no deduction as manual certificates were not being considered during processing of TDS statements by CPC TDS.

2. In this regard, existing functionality to issue online certificate u/s 197 in ITD application has been enhanced to issue online certificate u/s 195(2) and 195(3) as under:
i.          Assessing Officers of International taxation charges who are authorized to issue certificate u/s. 195(2) and 195(3) may be assigned the role AR INT TAXATION in ITD application by respective Computer Centre through HRMS module, if not already assigned. The certificate type i.e. 197/195(2)/195(3) also needs to be specified.
ii.          For issue of certificate u/s 195(2) and 195(3), jurisdiction restriction of PAN has been relaxed. For issue of certificate u/s 195(3), TAN and Amount has been made optional.
iii.          As per existing procedure for issue of certificate u/s 197, certificates u/s 195(2) and 195(3) is required to be approved by Range officer through ITD application.

3. The above functionality may kindly be brought to the notice of AOs under your charge.

New amendment to calculate Interest u/s. 234A on Self Assessment Tax.

SECTION 234A OF THE INCOME-TAX ACT, 1961 - INTEREST FOR DEFAULTS IN FURNISHING RETURN OF INCOME - CHARGEABILITY OF INTEREST UNDER SECTION 264A ON SELF-ASSESSMENT TAX PAID BEFORE DUE DATE OF FILING OF RETURN OF INCOME


Interest under section 234A of the Income-tax Act, 1961 (hereinafter the Act) is charged in case of default in furnishing return of income by an assessee. The interest is charged at the specified rate on the amount of tax payable on the total income, as reduced by the amount of advance tax, TDS/TCS, any relief of tax allowed under section 90 and section 90A, any deduction allowed under section 91 and any tax credit allowed in accordance with the provisions of section 115JAA and section 115JD of the Act. Since self-assessment tax is not mentioned as a component of tax to be reduced from the amount on which interest under section 234A of the Act is chargeable, interest is being charged on the amount of self-assessment tax paid by the assessee even before the due date of filing of return.

2. It has been held by the Hon'ble Supreme Court in the case of CIT v. Prannoy Roy, 309 ITR 231 (2009) that the interest under section 234A of the Act on default in furnishing return of income shall be payable only on the amount of tax that has not been deposited before the due date of filing of the income-tax return for the relevant assessment year. Accordingly, the present practice of charging interest under section 234A of the Act on self-assessment tax paid before the due date of filing return was reviewed by CBDT.

3. The Board has decided that no interest under section 234A of the Act is chargeable on the amount of self-assessment tax paid by the assessee before the due date of filing of return of income.

4. This Circular may be brought to the notice of all officers for compliance.

Eight Types of Income on Which You Don't Have to Pay Taxes

There are certain incomes that are exempt from income tax. If you get your income from these sources, your tax liability will be zero.

1) Dividend from shares and equity mutual fund: If you have invested in the shares of an Indian company, any dividend that you receive is not liable to tax under Section 10 (34) of Income Tax Act. The reason being the company has already paid tax from its own profit. Similarly, dividend income from an equity mutual fund is also exempt from tax. However, if you being an Indian resident have received dividend from a foreign company, it will be taxable. In case the dividend is taxed both in the foreign country and in India, you can claim taxation relief either as per the provisions of Double Taxation Avoidance Agreement (if India has such agreement with that country) or can claim relief as per Section 91, if no such agreement exists.

2) Proceeds received on maturity of life insurance policies: Any sum received under a life insurance policy (including bonus if any) is exempt from tax provided the premium paid to actual capital sum assured does not exceed the prescribed thresholds provided by Income Tax Act.

"For policies issued till March 2012, the premium shouldn't be more than 20 per cent of the actual sum assured. For policies issued from April 1, 2012, the percentage was reduced to 10 per cent of actual sum assured," says Ms Neha of Nangia & Co. The tax exemption is applicable for endowment policies only, she adds.

However, if the above conditions are not met, the individual will be liable to pay a tax deducted at source (TDS) at the rate of 2 per cent, if the amount received during the financial year is more than Rs. 1 lakh.

3) Scholarship or grant received: If you have received any scholarship or grant as a student to meet your education cost, it is totally exempted from tax.

4) Interest received from government notified bonds: Interest income that you earn from certain bonds notified by government is exempt from tax. Recently, the government allowed certain public sector companies to issue such tax-free bonds to raise money for infrastructure projects. The interest that you will receive on these bonds will be tax-exempt but if you make any gains by selling these bonds on exchange before maturity, you will have to pay tax on the capital gains.

5) Agriculture income: As per Section 10 (1) of Income Tax Act, agriculture income in terms of rent or from any agriculture produce is exempt from tax. However, the agriculture income will have to be added to one's total income for the determination of the income-tax slab of the individual, says Neha Malhotra, executive director of taxation at Nangia & Co, a tax advisory firm.

6) Share of profit from partnership firm: If you are a partner in a partnership firm, you will not have to pay any tax on your share of profits. "The share of profit is exempt for the individual partner, if received from a partnership firm which has been subjected to tax on the profits at the partnership firm level," says Parizad Sirwalla National Head-Global Mobility Services-Tax, KPMG.

7) Interest on Non Resident External (NRE) account: "Any interest received by an individual is exempt from tax until such time the individual is a person resident outside India (PROI) as per Foreign Exchange Management Act, 1999 (FEMA)," says (USE Mr or Ms) Parizad of KPMG.

8) Leave Travel concession (LTA): If you receive LTA as part of your salary is exempted from income tax unlike house rent allowance (HRA) against which you can claim deduction. You can claim exemption on the cost of domestic travel incurred under Section 10 (5) of Income Tax Act provided you give the proofs. You can claim LTA twice in a block of four years.

Source: www.profit.ndtv.com

D.A.for All Maharashtra State Employee 119% w.e.f. 1 July, 2015.

Today Maharashtra State Government, Finance Department has issued a Government Resolution regarding Payment of Dearness Allowance to State Government employees - Revised Rates effective from 1 July, 2015.  The Dearness Allowance is increased by 6% from 1st July, 2015 i.e. from 113% to 119%.  This increased Dearness Allowance is effective for all State Government Employee and other than eligible State Employee. The State Government decided to give cash payment of Dearness Allowance from February-2016 and the balance arrears of Dearness Allowance from July, 2015 to January, 2016 will be paid soon by State Government.


Download Dearness Allowance Circular (Click Here)

TDS/TCS - Income Tax Returns and Due Date for Asstt. Year 2016-17

It is mandatory for every taxpayer to communicate the details of his income to the Income-tax Department. These details  are to be furnished in the prescribed form known as return of income. In this part, you can gain knowledge about the various provisions relating to return of income.

Person required to file the return of income
The provisions relating to filing of return of income depend upon the status of the taxpayer. The position in this regard is given below:

In the case of companies:
Every person, being a company, has to file its return of income compulsorily, irrespective of its income being profit or loss. In other words, it is mandatory for every company to file the return of income irrespective of its income or loss.

In the case of partnership firms:
Every person, being a partnership firm (including Limited Liability Partnership), has to file its return of income compulsorily, irrespective of its income being profit or loss. In other words, it is mandatory for every partnership firm to file the return of income irrespective of its income or loss.

In the case of an Individual / HUF / AOP / BOI / Artificial Juridical Person :
Every individual/HUF/AOP/BOI/artificial juridical person has to file the return of income if his total income (including income of any other person in respect of which he is assessable) without giving effect to the provisions of section 10A, 10B or 10BA or Chapter VIA (i.e., deduction under section 80C to 80U), exceeds the maximum amount which is not chargeable to tax i.e. exceeds the exemption limit.

In the case of charitable or religious trusts:
Every person in receipt of income derived from property held under charitable or religious trusts/legal obligations or in receipt of income being voluntary contributions referred to in section 2(24)(iia), has to file the return of income if its total income without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount not chargeable to income-tax.

In the case of political parties:
The Chief Executive Officer of every political party has to file the return of income of the party if the total income of the party without giving effect to the provisions of section 13A exceeds the maximum amount not chargeable to income-tax.

In the case of certain associations :
Following entities are liable to file the return of income if their total income without giving effect to the provisions of section 10 exceeds the maximum amount not chargeable to tax:
  • Research association referred to in section 10(21)
  • News agency referred to in section 10(22B)
  • Association or institution referred to in section 10(23A)
  • Institution referred to in section 10(23B)
  • Fund/institution/trust/university/other educational institution/any hospital/medical institution referred to in sub-clause (iiiad), (iiiae), (iv), (v), (vi) or (via) of section 10(23C)
  • Mutual Fund referred to in clause (23D) of section 10
  • Securitisation trust referred to in clause (23DA) of section 10
  • Venture capital company or venture capital fund referred to in clause (23FB) of section 10;
  • Trade union/association referred to in sub-clause (a) or (b) of section 10(24)
  • Body/authority/Board/Trust/Commission referred to in section 10(46)
  • Infrastructure debt fund referred to in section 10(47)
In the case of certain university, college or other institution:
Every university, college or other institution referred to in clause (ii) and clause (iii) of section 35(1), which is not required to furnish return of income or loss under any other provision of the Act, shall furnish the return of income every year, irrespective of income (or) loss.

In the case of Business Trust
Every business trust, which is not required to furnish return of income or loss under any other provision of the Act, shall furnish the return of income every year, irrespective of income (or) loss.

In the case of persons holding assets located outside India:
Every person being a resident [other than not ordinarily resident in India], has to furnish his return of income even if he is not required to furnish a return of income as per the provisions discussed above, if during the year he has any asset (including any financial interest in any entity) located outside India or signing authority in any account located outside India.

Due date of filing of return of income

Short Notes on Tax Free Income - Section-wise for all Taxpayee - Free Download

As per the Finance (No.2) Act, 2014,  Income Tax Free Income level is very high.  Apart from this we all known that Income is payable on all types of Incomes earned by Taxpayee in India even-though, there are some exceptions to avoid this rule and some Incomes have been specially exemption from Income Tax.  Such Income is referred to as Income Tax Free Income.  The most popular Tax Free Income is namely :-

  • Agricultural Income (Section 10(1)).
  • Amount received by a member of the HUF from the income of the HUF, or in case of impartible estate out of income of family estate [Section 10(2)]
  • Share of profit received by a partner from the firm [Section 10(2A)]
  • Certain interest to non-residents [Section 10(4)]
  • Interest on notified savings certificates [Section 10(4B)]
  • Leave travel concession [Section 10(5)]
  • Remuneration received by specified diplomats and their staff [Section 10(6)(ii)]
  • Salary of a foreign employee and non-resident member of crew [Section 10(6)(vi),(viii)]
  • Remuneration of a foreign trainee [Section 10(6)(xi)]
  • Tax paid on behalf of foreign company deriving income by way of royalty or fees for technical services [Section 10(6A)]
  • Tax paid on behalf of foreign company or non-resident in respect of other income [Section 10(6B)]
  • Tax paid on behalf of foreign Government or foreign enterprise deriving income by way of lease of aircraft or aircraft engine [Section 10(6BB)]
  • Technical fees received by a notified foreign company [Section 10(6C)]
  • Allowance/perquisites to Government employee outside India [Section 10(7)]
  • Income of foreign Government employee under co-operative technical assistance programme [Section 10(8)]
  • Remuneration or fees received by a non-resident consultant/its foreign employees [Section 10(8A),(8B)]
  • Income of a family member of an employee serving under co-operative technical assistance programme [Section 10(9)]
  • Death-cum-retirement gratuity received by Government servants [Section 10(10)(i)]
  • Gratuity received by a non-Government employee covered by Payment of Gratuity Act, 1972 [Section 10(10)(ii)]
  • Gratuity received by a non-Government employee not covered by Payment of Gratuity Act, 1972 [Section 10(10)(iii)]
  • Pension [Section 10(10A)]
  • Leave salary [Section 10(10AA)]
  • Retrenchment compensation [Section 10(10B)]
  • Compensation for Bhopal Gas Leak Disaster [Section 10(10BB)]
  • Compensation on account of any disaster [Section 10(10BC)]
  • Payment at the time of voluntary retirement [Section 10(10C)]
  • Tax on perquisites paid by the employer [Section 10(10CC)]
  • Amount paid on life insurance policy [Section 10(10D)]
  • Exemption in respect of amount received from public provident fund/statutory provident fund/recognised provident fund/un-recognised provident fund [Section 10(11)/(12)]
  • Payment from approved superannuation fund in specified circumstances and subject to certain limits [Section 10(13)]
  • House rent allowance [Section 10(13A)] 
  • Prescribed allowances or benefits [Section 10(14)]
  • Interest on securities [Section 10(15)]
  • Lease rent of an aircraft [Section 10(15A)]
  • Educational scholarship [Section 10(16)]
  • Daily allowance to a Member of Parliament [Section 10(17)]
  • Awards [Section 10(17A)]
  • Pension to gallantry award winner [Section 10(18)]
  • Family pension received by the family members of armed forces [Section 10(19)]
  • Annual value of one palace [Section 10(19A)]
  • Income of local authority [Section 10(20)]
  • Income of research association [Section 10(21)]
  • Income of a news agency [Section 10(22B)]
  • Income of a professional association [Section 10(23A)]
  • Income received on behalf of Regimental Fund [Section 10(23AA)]
  • Income of a fund established for welfare of employees [Section 10(23AAA)]
  • Income of pension fund [Section 10(23AAB)]
  • Income from Khadi or village industry [Section 10(23B)]
  • Income of Khadi and Village Industries Boards [Section 10(23BB)] 
  • Incomes of statutory bodies for the administration of public charitable trust [Section 10(23BBA)] 
  • Income of European Economic Community [Section 10(23BBB)]
  • Income of SAARC fund [Section 10(23BBC)]
  • Income of Secretariat of Asian Organisation of Supreme Audit Institutions [Section 10(23BBD)]
  • Income of Insurance Regulatory and Development Authority [Section 10(23BBE)]
  • Income of North - Eastern Development Financial Corporation Limited [Section 10(23BBF)]
  • Income of Central Electricity Regulatory Commission [Section 10(23BBG)] 
  • Income of the Prasar Bharati [Section 10(23BBH)]
  • Income of certain national funds [Section 10(23C)(i)/(ii)/(iii)]
  • Income of National Foundation for Communal Harmony [Section 10(23C)(iiia)], Section 10(23C)(iiiad), Section 10(23C)(vi)
  • Income of Hospital [Section 10(23C)(iiiac)/(iiiae)/(via)]
  • Income of Charitable Institution or Fund [Section 10(23C)(iv)]
  • Income of religious/charitable trust [Section 10(23C)(v)]
  • Income of mutual fund [Section 10(23D)]
  • Income of a securitisation trust [Section 10(23DA)]
  • Income of notified investor protection fund [Section 10(23EA)]
  • Income of Credit Guarantee Fund Trust [Section 10(23EB)]
  • Income of the notified investor protection fund set - up by commodity exchange [Section 10(23EC)]
  • Income of Investor Protection Fund set by a depository [Section 10(23ED)]
  • Income of a venture capital fund or a venture capital company from investment in a venture capital undertaking [Section 10(23FB)]
  • Income of a of a Business Trust [Section 10(23FC)]
  • Distributed Income of a Unit Holder from the Business Trust [Section 10(23FD)]
  • Income of a registered trade union [Section 10(24)]
  • Income of provident fund [Section 10(25)]
  • Income of the Employees’ State Insurance Fund [Section 10(25A)]
  • Income of a member of a Scheduled Tribe [Section 10(26)]
  • Income of a “Sikkimese” individual [Section 10(26AAA)]
  • Income of an Agricultural Produce Marketing Committee/Board [Section 10(26AAB)]
  • Income of corporation or other body or institution or association established for promoting the interest of members of Scheduled Caste, etc. [Section 10(26B)]
  • Income of corporation established for promoting interest of minority caste [Section 10(26BB)]
  • Income of corporation established for ex-servicemen [Section 10(26BBB)]
  • Income of a co-operative society formed for promoting the interests of the members of Scheduled Castes or Scheduled Tribes [Section 10(27)]
  • Income of coffee board, rubber board, etc. [Section 10(29A)]
  • Subsidy from the Tea Board [Section 10(30)]
  • Income of minor [Section 10(32)]
  • Capital gains on transfer of US 64 [Section 10(33)]
  • Dividends and interest on units [Section 10(34)/(35)]
  • Income of a shareholder on account of buy back of shares by the company [Section 10(34A)]
  • Income of an investor received from a securitisation trust [Section 10(35A)]
  • Capital gains in case of compulsory acquisition of urban agricultural land [Section 10(37)]
  • Long - term capital gains on transfer of equity shares or units of an equity oriented mutual fund or a unit of a business trust covered by securities transaction tax [Section 10(38)]
  • Income from international sporting event [Section 10(39)]
  • Grants received by specified subsidiary company [Section 10(40)]
  • Income of certain non - profit body or authority [Section 10(42)]
  • Loan in the case of reverse mortgage [Section 10(43)]
  • Income of New Pension System Trust [Section 10(44)]
  • Any notified allowance or perquisite paid to the Chairman/retired Chairman or any other member/retired member of the UPSC [Section 10(45)]
  • Exemption of specified income of notified body/ authority/trust/board/commission [Section 10(46)]
  • Any income of a notified infrastructure debt fund set-up in accordance with prescribed guidelines [Section 10(47)]
  • Income received by certain foreign companies in Indian currency for import of crude oil etc. [Section 10(48)]
  • Tax exemption to National Financial Holdings Company Limited [Section 10(49)]

Other important exemptions 
Apart from above discussed exemption of section 10 following is the list of other important exemptions:

  • Section 10A provides for exemption in respect of income of newly established undertakings in free trade zone or electronic hardware technology park or electronic software technology park.
  • Section 10AA provides for exemption in respect of income of newly established units in Special Economic Zones. 
  • Section 11 and 12 provide exemption in respect of income of a public charitable or religious trust.
  • Section 13A provides exemption in respect of income of a political party.
  • Section 13B provides exemption in respect of income of an electoral trust. 
FREE DOWNLOAD SHORT NOTES (CLICK HERE)

Deductor to get Interest on TDS Refund only from date of return filing.

Deductor to get interest on TDS refund from date of filing claim and not from date of deposit of TDS

Where TDS u/s 195 becomes refundable to resident deductor on account on non-resident payee waiving the payment and the resident deductor delays filing the refund application to the Department(files it 18 months after the date of waiver by non-resident), he will be entitled to interest on refund u/s 244-A only from the date of filing the refund claim only and not from date of deposit of TDS as law favours the vigilant only and not those who slumber and Department cannot be made liable for interest for any period prior to the date on which facts giving rise to refund are brought to the Department's notice

source: www.taxmann.com

Detailed procedure to file and Correction of e-TDS Return online at TIN website.

Procedure of furnishing of e-TDS statement/return online at TIN website:

Deductor/DDO is required to procure Digital Signature Certificate (DSC) for online upload of e-TDS statement/return. After registration on TIN website, an authorization letter by the Deductor/DDO should be provided on the letter head of the organisation to NSDL. Once application is approved by NSDL, user ID is created and intimated to Deductor/DDO on their registered email ID provided at the time of registration. Preparation and validation of e-TDS statement is in line with regular e-TDS statement/return (submitted at TIN-FC).Deductor/DDO can login with its user ID and DSSC and upload the validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token no. and 8 digit receipt number is generated and displayed. There is no need to submit physical form 27A in online upload. Deductor/DDO can view the status of e-TDS statement/return on TIN website.

No charges are applicable for online upload of e-TDS statement/return.

Correction of e-TDS statement/return online at TIN website:


Deductor/DDO can file a correction e-TDS statement/return for any modification in e-TDS statement/return accepted at TIN central system. Correction statement/return can be prepared by using the TDS consolidated file only, available at the CPC-TDS portal www.tdscpc.gov.in through TAN registration. Preparation and validation of e-TDS statement is in line with regular e-TDS statement/return (submitted at TIN-FC) Deductor/DDO can login with its user ID and DSC and upload the validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of correction e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token number is generated and displayed. There is no need to submit copy of provisional receipt of regular e-TDS statement/return, physical Form 27A and SSR in online upload. Deductor/DDO can view the status of e-TDS statement/return on TIN website.

Complete Procedure to exempt House Rent Allowances by Salaried Employee for Asstt. Year 2016-17.

To claim Exemption of House Rent Allowance paid by Salaried Employee for Asstt. Year 2016-17 under section 10(13A) of the Act, any special allowance specifically granted to an Salaried Employee (assessee) by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. According to Rule 2A of the Rules, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the following:

(a) the actual amount of such allowance received by the assessee in respect of the relevant period i. e. the period during which the accommodation was occupied by the assesse during the financial year; or

(b) the actual expenditure incurred in payment of rent in excess of one-tenth of the salary due for the relevant period; or

(i) where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the employee for the relevant period; or

(ii) where such accommodation is situated in any other places, 40% of the salary due to the employee for the relevant period.

For this purpose, "Salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.

It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.

Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3000/- per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.

Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

Final updated 7th Pay Calculator for all Central Employee as per report dated 19.11.2015

Central Civilian Employees 7th Pay Calculator as per Report dated 19.11.2015

After published 7th Pay Commission report by Central Government many webside developed 7th pay calculator for all Central Civilian Employees as average pay.  This utility provides to all Central Civilian Employee 7th Pay Calculation perfectly as based on Report dated 19.11.2015 issued by "The Seventh Central Pay Commission, The Government of India".

According to that post many quires are received regarding, file password, unprotected sheet, hide file etc. therefore today I published with some little amendment in that  calculator for yours.   This calculator calculate 6th Pay Salary and pay fixed in 7th Pay Commission as on 01.01.2016.  This 7th Pay Calculator is for all the central Civilian Employees whose Grade Pay is 1800, 1900, 2000, 2400, 2800, 4200, 4600, 4800, 5400, 6600, 7600, 8700, 8900, 10000 and Fixed Salary Employee.

Most Important Points :
While a carefully calibrated gradation has been adopted as the levels progress upwards, it would be seen that two levels, corresponding to GP 8700 and GP 10000 witness a slight departure.
  • In the existing system there is a disproportionate increase in entry pay at the level pertaining to GP 8700. To address this, the proposed increase at this level has been moderated.
  • In so far as GP 10000 is concerned, this represents the Senior Administrative Grade, which carries a significantly higher degree of responsibility and accountability. Further,the levels of SAG and above are those which are involved in policy formulation.
  • Hence, in recognition of the same, the entry pay pertaining to GP 10000 as well as that of HAG and HAG+ has been enhanced by a multiple of 2.72.
  • The Apex pay of Secretary/equivalent and pay of Cabinet Secretary/equivalent has been fixed by applying indices of 2.81 and 2.78 respectively. The rationalised entry pay so arrived has been used in devising the new pay matrix.
 

Calculations as per report in 7th Pay ?


 
Download Latest 7th Pay Calculation for All Civilian Employees (Click Here

Very Important Dates in the Month of February-2016 for Income Tax and TDS

Important Dates in the Month of February-2016
(Income Tax and TDS)



Today is the first day of the month of February-2016. For Taxpayee and Deductor this is month is this is very important.  The assessee can find their obligation toward income tax department through this income tax calendar which is as below:

Due Dates for February-2016
7 February 2016
​​Due date for deposit of Tax deducted/collected for the month of January, 2016​
15 February 2016
​Quarterly TDS certificate (in respect of tax deducted for payments other than salary) by a person being an office of the Government for the quarter ending December 31, 2015​
22 February 2016
​​Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of January, 2016​

Additional D.A. increased by 6% (from 119% to 125%) from Jan-2016 confirmed.

AICPIN has been issued a press release on 29th Jan., 2016 and in that Consumer Price Index 1 point decrease i.e. 270 to 269.  As per this press Release report the Additional Dearness Allowance is hiked by 6% from Jan-2016 i.e. from 119% to 125% confirmed. The press Release are as under:

No.5/1/2015- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

`CLEREMONT’, SHIMLA-171004
DATED: 29th January, 2016

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – December, 2015

The All-India CPI-IW for December, 2015 decreased by I point and pegged at 269 (two hundred and sixty nine). On 1-month percentage change, it decreased by (-) 0.37 per cent between November and December, 2015 which was static between the same two months a year ago.

The maximum downward pressure to the change in current index came from Food group contributing (-) 1.36 percentage points to the total change. At item level, Arhar Dal, Masur Dal, Moong Dal, Onion, Potato, Tomato, Peas and other Green Vegetables & Fruit items, Petrol, etc. are responsible for the fall in index. However, this decrease was checked by Rice, Wheat, Wheat Atta, Fish Fresh, Eggs (Hen), Poultry (Chicken), Goat Meat, Milk (Buffalo), ESI Contribution, Rail Fare, Barber Charges, Flower/Flower Garlands, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 6.32 per cent for December, 2015 as compared to 6.72 per cent for the previous month and 5.86 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 7.94 per cent against 7.86 per cent of the previous month and 5.73 per cent during the corresponding month of the previous year.

At centre level, Ludhiana reported the maximum decrease of 7 points followed by Ahmedabad and Rourkela (6 points each), Tripura, Varanasi, Lucknow and Kodarma (5points each). Among others, 4 points decrease was observed in 9 centres, 3 points in 4 centres, 2 points in 11 centres and 1 point in 12 centres. On the contrary, Quilon recorded a highest increase of 7 points followed by Warangal (4 points), and Rangapara-Tezpur, Chhindwara and Mundakkayam (3 points each). Among others, 2 points increase was observed in 5 centres and 1 point in 9 centres. Rest of the 16 centres’ indices remained stationary.

The indices of 37 centres are above All-India Index and other 40 centres’ indices are below national average. The index of Jabalpur centre remained at par with All-India Index.

The next issue of CPI-IW for the month of January, 2016 will be released on Monday, 29th February, 2016. The same will also be available on the office website www.labourbureaunew.gov.in.

sd/-
(SHYAM SINGH NEGI)
DEPUTY DIRECTOR GENERAL