taxworry.com: A NEWS u can USE

Showing posts with label A NEWS u can USE. Show all posts

Showing posts with label A NEWS u can USE. Show all posts

Thursday, June 05, 2008

REC Bonds Issued. Hurry Up!

We want to invest interest gained on National Saving Certificates in REC or NHA bonds. Can we get benefit under Sec. 54-EC ? Babu hai Choudhari , Ahmedabad
I sold my plot in Dec2007 and got Long Term Capital Gain of about Rs.7.6 Lacs. Currently there is no TAX Saving Bonds Scheme available from NABARD, REC & NHAI where this amount can be invested to save TAX. V K Gupta, Sonepat

The readers who have earned long term capital gains on any asset and were waiting for the bonds in the market for claiming exemption u/s 54EC should rejoice as the Rural Electrification Corporation Ltd has come to market for subscription of its Capital Gains Tax Exemption Bonds - Series-VIII which opened on 28th May 2008 .Further details can be from the links provided below
Issue Highlights of 54EC Bonds - Series VIII Information Memorandum of 54EC Bonds - Series VIII Application Form of 54 EC Bonds - Series VIII (SAMPLE) (Application Form can be downloaded from the website : http://rec.rcmcdelhi.com)

Have you read ?
Interest on REC Bond Is Taxable Yearwise!

Sunday, March 23, 2008

Check Your Refund Status Online Now!

A News You Can Use

NSDL which established Tax Information Network on behalf of income tax department has put following on its website for tax payers.

The refund banker pilot scheme has commenced from 24th Jan 2007. It is now operational for taxpayers assessed in Delhi in salary charges i.e. CIT XIV, XV,XVI and one business charge i.e. CIT IX. It is also operational in Patna for CIT I, II and Central. From September 30, 2007 the pilot has been extended in few other stations i.e. Bangalore, Chennai, Delhi, Kolkata, Mumbai (except for company and exemption refunds).

In the pilot scheme all Income tax Returns will be processed by Assessing officers. ITOs, Asst. Deputy Commissioners, Commissioners. The refunds (by ECS or paper cheques)will be sent by CMP branch of SBI.

Taxpayers will get status of refund 10 days after the refund has been sent by their Assessing Officer for refund banker. Status will be available only for those taxpayers whose refunds are to go through refund banker pilot scheme.

Click Here To Know Your Refund Status

Wednesday, February 13, 2008

PAN Percentage FOR TDS/TCS Return Enhanced!

News You Can Use

No.402/92/2006-MC (10 of 2008)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

***

New Delhi dated the 12^th February 2008

PRESS RELEASE

All tax deductors / collectors are required to file the TDS/TCS returns in Form No.24Q (for salaries), Form No.26Q (for payments other than salaries) or Form No.27EQ (for TCS). These forms require details of all tax deductions with name and permanent account number (PAN) of parties from whom tax was deducted.

It had earlier been decided that Form No.24Q with less than 90% of PAN data and Form No.26Q & Form No.27EQ with less than 70% of PAN data will not be accepted for the quarter ending on 30.09.2007 and thereafter.

The said decision has since been reviewed. It has now been decided to enhance the threshold limit for PAN quoting without which TDS/TCS returns will not be accepted. The limit has been enhanced to 95% from 90% in case of Form 24Q and to 85% from 70% in case of Forms 26Q and 27EQ. The enhanced limits will be applicable for and from the quarter ending 31.03.2008. These threshold limits will also apply to all those TDS/TCS returns, which are filed for any of the earlier quarters on or after 01/04/2008.

Tax deductors and tax collectors are, therefore, advised to obtain correct PAN of all deductees and quote the same in their TDS / TCS returns. Deductees are also advised to furnish their correct PAN with their deductors, failing which they will not only have difficulty in getting credit of TDS/TCS in their income tax assessments but will also face penal proceedings under the Income Tax Act.

Saturday, February 02, 2008

Date For TDS Return For September 2007 Extended !

A News You Can Use

F.No. 275/6/2008-IT(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Tax

*****

New Delhi dated 28th January 2008

Subject :- Order under section 119(2)(a) of the Income –Tax Act, 1961 regarding extension of time for filing of Tax Deduction/Collection at source Returns for the 2^nd quarter and non-levy of penalty for delay in filing for the same.

In exercises of the powers conferred by clause (a) of sub-section (2) of section 119 of the Income-Tax Act’1961, the Central Board of Direct Taxes hereby extends the due date for filing of quarterly statements of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) for the quarter ending 30^th September 2007 of financial year 2007-08 as per the provisions of section 200(3) and proviso to section 206C(3) respectively, to 29^th February 2008.

(Ansuman Pattnaik)

Deputy Secretary (Budget)

Tele Fax No 2309 2641

Monday, January 28, 2008

Rule For Valuation Of Specified Security For FBT Notified!

A News You Can Use

CBDT has notified new rules for valuing the specified securities for the purpose of fringe benefit tax. The rule 40D given below is self explanatory

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,

PART -II- Section 3- Sub-section (ii)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department Of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

Notification

New Delhi, the 18th January, 2008

INCOME-TAX

S.O. 113(E). – In exercise of the powers conferred by section 295 read with Explanation (i) to clause (ba) of sub-section (1) of section 115WC of the Income-tax Act, 1961 (43 of 1961), read with section 22 of the General Clauses Act, 1897 (10 of 1897), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Second Amendment) Rules, 2008.

(2) They shall come into force with effect from the 1st day of April, 2008.

2. In the Income-tax Rules, 1962, in Part VII C, -

(i) in rule 40C, in sub-rule (4), clause (f) shall be omitted; and

(ii) after rule 40C, the following rule shall be inserted, namely:-

“Valuation of specified security not being an equity share in the company.

40D. For the purposes of clause (ba) of sub-section (1) of section 115WC, the fair market value of any specified security, not being an equity share in a company, on the date on which the option vests with the employee, shall be such value as determined by a merchant banker on the specified date.

Explanation.- For the purposes of this rule, “merchant banker” and “specified date” shall have the meanings assigned to them in clause (b) and clause (e) respectively of sub-rule 4 of Rule 40C.”

[Notification No. 11/2008/F.No.142/25/2007-TPL]

SOBHAN KAR, Under Secretary.

Saturday, January 26, 2008

ePayment Of Tax Now Mandatory!

A News You Can Use

Companies and all assessee for whom tax audit u/s 44AB is mandatory are now required to file tax ONLINE only. Read the press release which is self explanatory.

No.402/92/2006-MC (05 of 2008)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

***

New Delhi dated the 23rd January 2008

PRESS RELEASE

The optional scheme of electronic payment of taxes for income-tax payers was introduced in 2004. With a view to expand the scope of electronic payment of taxes, it is proposed to make the scheme mandatory for the following categories of tax-payers:-

(i) All corporate assesses;

(ii) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act are applicable.

2. The scheme of mandatory electronic payment of taxes for income-tax payers is proposed to be made applicable from 1st April, 2008.

3. Tax-payers can make electronic payment of taxes through the internet banking facility offered by the authorized banks. They will also be provided with an option to make electronic payment of taxes through internet by way of credit or debit cards.

Thursday, January 03, 2008

Good News! Investment In Sr.Citizen Savings & 5 Year PO Time Deposit Eligible For 80C deduction.

A news You Can Use

Read the following press release given on income tax department's site regarding the eligibility of two new savings scheme as far as 80C deduction is concerned.

PRESS RELEASE
Section 80C of the Income-tax Act provides for a deduction of up to Rs. One lakh to an individual or a Hindu undivided family (HUF) for:-
(i) making investments in certain savings instruments; or
(ii) incurring expenditure on tuition fee and repayment of housing loan.
2. With a view to encourage small savings, the Government has taken a policy decision to include the investments made in the following two deposit instruments within the ambit of Section 80C:-
(i) Five Year Post Office Time Deposit Account; and
(ii) Senior Citizens Savings Scheme.
3. Therefore, the investment by an individual or a Hindu undivided family (HUF) in these two instruments during the previous year 2007-08 (relevant to assessment year 2008-09), and subsequent years, shall be eligible for deduction under section 80C of the Income-tax Act, subject to the overall ceiling of Rs. One lakh in that section. It is further clarified that investments made on or after 1.4.2007 (i.e. from the beginning of the financial year 2007-08) shall be eligible for this deduction.
4. Drawing and Disbursing Officers (DDOs) may take such investments into consideration while determining the TDS liability of an employee for the previous year 2007-08 (relevant to assessment year 2008-09) and subsequent years.

Saturday, September 29, 2007

Send Money Abroad Up To USD 2,00,000 Now!

News You Can Use

The Reserve Bank Of India has further liberalised the forex rules and one of the relaxation affecting Individuals immediately will be raising of remittance limit under Liberalised Remittance Scheme for resident Indians. Read the press release issued by RBI.

P. (DIR SERIES) CIRCULAR NO. 9, DATED 26-9-2007
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A. P. (DIR Series) Circular No. 51 dated May 8, 2007 on the Liberalised Remittance Scheme for Resident Individuals (the Scheme).
2. With a view to further liberalize the Scheme it has been decided, in consultation with the Government of India, to enhance the existing limit of USD 100,000 per financial year to USD 200,000 per financial year (April - March) with immediate effect. Accordingly, AD Category – I banks may now allow remittance up to USD 200,000, per financial year, under the Scheme, for any permitted current or capital account transaction or a combination of both.
......

For understanding better on Liberalised Remittance Scheme, read the FAQ for better understanding. The FAQ is the excerpt from RBI web site

What are the purpose/s for which remittance can be made under the Scheme?

This facility is available for making remittance/s for any permissible current or capital account transaction or a combination of both. It is not available for purposes specifically prohibited (Schedule I) or regulated by the Government of India (Schedule II) of Foreign Exchange Management (Current Account Transactions) Rules, 2000.

Can residents avail of this facility for acquiring immovable property and other assets abroad?

Yes. Individuals are free to use this Scheme to acquire and hold immovable property, shares or any other asset outside India without prior approval of Reserve Bank.

Can individuals open foreign currency account abroad for making remittance under the Scheme?

Yes. Individuals are free to open, hold and maintain foreign currency accounts with a bank outside India for making remittances under the Scheme without the prior approval of Reserve Bank. The account can be used for putting through any transaction connected with or arising from remittances under the Scheme.

What is the impact of the Scheme on the existing facilities for private/business travel, studies, medical treatment etc./items covered in Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000?.

The facility under the Scheme is in addition to those already available under Foreign Exchange Management (Current Account Transactions) Rules, 2000.

Can an individual send remittance under the Scheme to any country?

Remittance cannot be made directly or indirectly to Bhutan, Nepal, Mauritius or Pakistan. The facility is also not available for making remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as ‘non-co-operative Countries or Territories, from time to time.

For the current list of such countries/ territories please visit www.fatf-gafi.org.

Further, remittance under the facility cannot be made to individuals and entities identified as posing significant risk or committing acts of terrorism as advised to banks by Reserve Bank from time to time.

What are the requirements to be complied with by the remitter?

The individual will have to designate a branch of an AD through which all the remittances under the Scheme will be made. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance. He has to furnish an application-cum-declaration in the specified format regarding the purpose of the remittance and declare that the funds belong to him and will not be used for purposes prohibited or regulated under the Scheme.

If an investment of USD 50,000 rises in value within the year, can one book profits and invest abroad again?

The investor is free to book profit or loss abroad and to invest abroad again. He is under no obligation to repatriate the funds remitted abroad.

Can an individual, who has repatriated the amount remitted during the financial year, avail of the facility once again?

Once a remittance is made for an amount upto USD 50,000 during the financial year, he would not be eligible to make any further remittances under this route, even if the proceeds of the investments have been brought back into the country.

Can remittances be made only in US Dollars?

The remittances can be in any currency equivalent to USD 50,000 in a financial year.

Last year, resident individuals could invest in overseas companies listed on a recognised stock exchange abroad and which has the shareholding of at least 10 per cent in an Indian company listed on a recognised stock exchange in India. Does this condition still exist?

Investment by resident individual in overseas companies is subsumed under the Scheme of USD 50,000. The requirement of 10 per cent reciprocal shareholding in the listed Indian companies by such overseas companies has since been dispensed with.

Wednesday, September 12, 2007

What Are The Tax Benefits Available To Senior Citizens?

What are the deductions admissible to a Senior Citizen? K G Menon

There are not many Exclusive deductions available to senior citizen . A person becomes senior citizen under Income Tax Act in any year after attaining the age of 65 even for one day. Once he attains 65 years, his status as senior citizen in that financial year , gives him some relief .There are not many . These are listed below:

1. Higher Exemption Limit

For FY2007-08, basic exemption limit for tax is fixed at Rs 1,95,000. Therefore, any Sr. citizen having total income till 1,95,000 for Fy 2007-08 , will not have to pay any tax .

2. Reverse mortgage for senior citizens
Reverse mortgage' - a concept introduced by Finance 2007 -provides that a senior citizen will be able to avail of monthly income streams by mortgaging a house owned by him. However, this scheme is yet to materialize.

3. Tax benefits on medical insurance hiked

A senior citizen can avail of higher of higher deduction of Rs 20,000 u/s Section 80D.

4. Higher Deduction u/s 80DDB

Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified ailments.Generally this deduction is available upto Rs 40,000 . However , if the patient is a senior citizen, then deduction of Rs 60,000 is allowable.

5. No TDS on earning of interest below Rs 10,000

From 1/6/2007 , the interest paid to a senior citizen shall be subject to TDS only if interest paid u/s 194A exceeds Rs 10,000. The said interest should be paid or credited under Senior Citizen Saving Scheme or by co-operative .Read more about it here.

Wednesday, September 05, 2007

eTDS Is Mandatory For Most Persons Now!

Till now, only eTDS was mandatory for Government or Company deductor . However, now the CBDT has amended the Rule 31A, & 31AA vide Notification No. 238/2007 [ S.O. 1484(E) ] dated 30^th August, 2007 to provide that in addition to the existing two categories, quarterly statements of TDS/TCS shall also have to be furnished electronically in the following cases:-

(i) Where the deductor/collector is a person required to get his accounts audited under section 44AB of the Income-tax Act in the immediately preceding financial year.
(ii) The number of deductees’/collectees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to more than fifty.

The press release in this regard is as follows

No.402/92/2006-MC (35 of 2007)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
***
New Delhi dated the 3^rd September, 2007
PRESS RELEASE

The existing rules 31A and 31AA of the Income-tax Rules, 1962 require only a Government office and a company to furnish quarterly statements of deduction/collection of tax at source electronically. The said rules 31A and 31AA have been amended vide Notification No. 238/2007 [ S.O. 1484(E) ] dated 30^th August, 2007 to provide that in addition to the existing two categories, quarterly statements of TDS/TCS shall also have to be furnished electronically in the following cases:-
(i) Where the deductor/collector is a person required to get his accounts audited under section 44AB of the Income-tax Act in the immediately preceding financial year.
(ii) The number of deductees’/collectees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to more than fifty.
2. Failure to furnish quarterly statements of TDS and quarterly statements of TCS shall, under the provisions of section 272A of the Income-tax Act, 1961, render the defaulter liable for a penalty of Rs.100/- for every day during which the default/failure continues.
3. The notification has come into effect from 1^st day of September, 2007. Accordingly, quarterly statement for the quarter ending 30^th September, 2007 shall have to be mandatorily filed electronically by Government and corporate deductors/collectors and by the deductors/collectors falling in the aforementioned two categories.

Saturday, August 04, 2007

Cost Inflation Index For FY 2007-08 Notifed!

News You Can Use

The Cost Inflation Index for Fy 2007-08 is at 551 . For complete chart , read this post. The cost inflation index for FY 2007-08 was notified as under

NOTIFICATION NO. 214/2007, DATED 3-8-2007

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to seventy-five per cent of the average rise in the Consumer Price Index for the financial year commencing from the 1st day of April, 2006 and ending on the 31st day of March, 2007 for the urban non-manual employees, hereby specifies the Cost Inflation Index for the financial year commencing from the 1st day of April, 2007 and ending on the 31st day of March, 2008 and for that purpose further makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, Number S.O. 709(E), dated the 20th August, 1998, namely:—

In the said notification, in the Table, after serial number 26 and the entries relating thereto, the following serial number and the entries relating thereto shall be added, namely :—

“27 2007-08 551”

Wednesday, July 25, 2007

Tax Offices Open On Saturday & Sunday !

News You Can Use

CBDT has issued order for keeping the income tax office open on 28 & 29 th July 2007 for tax payers convenience.

F.No.220/3/2007- ITA-II
Government of India
Ministryof Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, the 24thJuly, 2007.

Order under Section 119 (1) of the Income Tax Act, 1961.

The due date for filing of return of income within the meaning of Explanation2 (c) to Section 139 (1) of the Income Tax Act, 1961 is 31st July, 2007. The income tax authorities are hereby directed to make arrangements for accepting the returns of income on 28th and 29th July, 2007 (being Saturday and Sunday). This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961.

Special arrangements may also be made by way of opening additional receipt counters, wherever required, from 25 th July to 31 st July to facilitate the taxpayers to file their returns.

(Renu Jauhri)
Director (ITA-II)

Thursday, June 14, 2007

FBT Advance Payment on ESOP Extended to 15th September!

News You Can Use

Press Information Bureau published following Press Release by Finance Ministry

"The Central Board of Direct Taxes (CBDT) has decided that the first installment of Fringe Benefit Tax, which is payable by tomorrow in respect of transfer or allotment of specified security or sweat equity shares to its employees, may now be paid by 15th of September, 2007 (the date of second instalment).

CBDT is currently in the process of notifying the method for determination of the fair market value. In the meantime, the first instalment of advance tax in respect of fringe benefit tax falls due on 15th of June. In the absence of a method for determination of the fair market value, it will not be possible for an employer to determine the value of the first instalment of advance tax related to fringe benefit tax in respect of allotment or transfer of specified security or sweat equity shares to its employees.

By virtue of the provision of clause (d) of sub-section (1) section 115 WB, introduced by Finance Act, 2007, an employer is liable to pay Fringe Benefit Tax on any consideration for employment provided by way of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by such employer free of cost or at concessional rate to his employees. The value of the fringe benefit is determined as the fair market value of the specified security or sweat equity share on the date on which the option vests with the employee as reduced by the amount actually paid, by or recovered from the employee in respect of such security or shares. The fair market value for this purpose is to be determined in accordance with the method prescribed by the Board"

Monday, June 04, 2007

No TDS on Interest Below Rs 10000 For Senior Citizen!

News You Can Use

Good news for all senior citizen. Now , there will not be TDS on interest earned on Senior Citizen Scheme 2004 and other bank /Co-Operative interest if the quantum of interest is below Rs 10000. The law is effective from 1/6/2007. Previously the quantum was Rs 5000. The PIB press release on the subject matter was as under:

The Government, vide notification SO No.861 (E) dated 1st June, 2007, has enhanced the threshold limit for exemption from deduction of tax at source from Rs. 5,000 to 10,000 on interest on any deposit under Senior Citizens Savings Scheme, 2004. The enhanced threshold limit of ten thousand rupees has come into force from 1-6-2007. This notification has been issued pursuant to an amendment made to section 194A of the Income-tax Act, 1961 by the Finance Act, 2007.

By virtue of the aforementioned notification, no tax will be required to be deducted at source under section 194A of the Income-tax Act on interest credited or paid or likely to be credited or paid on any deposit made under Senior Citizens Savings Scheme, 2004 where such interest does not exceed ten thousand rupees during the financial year.

The move is expected to benefit many senior citizens who have made deposits under the said Scheme. The enhanced limit of ten thousand rupees is also applicable with effect from 1.6.2007 to payments of interest by banking companies and co-operative societies engaged in the business of banking. "

Even otherwise there is scope of no deduction of tax at source if sr. citizen file form 15 H form with the banks /Co-operatives and other deductor .

Friday, January 19, 2007

Download Forms for REC Bonds .Hurry!

Those were desperately searching for information of Capital Gains Bonds for exemption u/s 54EC of the I T Act, rejoice. Download the form from here .Rest of the info about the issue can be obtained from rural Electrification's website . Click here . The issue will remain open upto 31/3/2007 and minimumbond is of Rs 10,000 and maximum Rs 50,00,000.

Tuesday, January 02, 2007

Great News! Bonds Are Here Again for Saving Capital Gain Tax.

There was great difficulties for people who had capital gains in their hand and who wanted to save tax u/s 54EC by investment in notified bonds , since there was only two notified bonds ,that of ,Rural Electrification Corporation and National highways Authority . None was available.

Now the CBDT has notified that REC is going to issue Bonds worth five crore which will be open for subscription between 26/12/06 and 31/3/2007 . So hurry ! Read the notification by clicking here

Thursday, November 30, 2006

Agents of Non Resident exempt from obligation to file Returns electronically

The CBDT issued circular no 12/2006, Dated 27-11-2006 that for Agents of Non Resident , filing Return electronically is not mandatory . The relevant portion of circular is give below

"2. It has been brought to the notice of the Board that the agents of non-residents, within the meaning of section 160(1)(a) of the Income-tax Act, are facing difficulties in electronically furnishing the returns of non-residents. This is because of the reason that there may be more than one agent for a non-resident in India for different transactions or a person in India may be an agent of more than one non-resident. Such situations are not covered by the existing software which functions on the principle of one assessee one PAN one return. Accordingly, it has been decided by the Board that it will not be mandatory for agents of non-residents, within the meaning of section 160(1)(a) of the Income-tax Act, to electronically furnish the returns of non-residents in Form No. 1 for assessment year 2006-07. [F. No. 133/38/2006-TPL] "

Monday, November 06, 2006

Banks to issue refunds!Rejoice!

It is reported that I-T department may tie up with State Bank of India to act as the refund banker.
It is mandatory now for taxpayers to quote their account details in their tax returns. This will ensure they get their refunds quickly and safely. An experiment in this regard is scheduled for January to March, 2007, to ensure the entire process runs smoothly . So, be wise and optimistric.

Wednesday, November 01, 2006

Remit One million dollor now,Mr NRI!

The RBI, it has been announced on 31/10/2006 , removed the lock-in period for remittance of sale proceeds of immovable property in India by non-resident Indians (NRIs) and persons of Indian origins (PIO) provided the amount being remitted does not exceed $1 million in any financial year.
Earlier, NRIs and PIOs were permitted to remit up to $1 million per calendar year for any bonafide purpose out of the balances in their NRO accounts.

Tuesday, October 31, 2006

newspaper to deduct tax at source to paymments to advertising companies

It is reported that CBDT has confirmed to Indian Indian Newspaper Society newspapers must deduct tax at source on payments made by them to advertising agencies.The clarification was following a clarification sought by the latter .

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