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Latest ITR Forms & Important Announcement for Non Filers of ITR for Asstt. Year 2013-14

Income Tax Department has published an important announcement for Non-Filers of Income Tax Return for Asstt. Year 2013-14 on their official website https://incometaxindiaefiling.gov.in/ on 28.03.2014.  This important announcement is as follows:

In 2013, Income Tax Deparment issued letters to 12,19,832 non-filers who had done high value transactions.

In 2014, Income Tax Department has identified addtional 22,09,464 non-filers who have done high value transactions.  You may be one of them.  Act Now !

Logon to e-filing portal at https://incometaxindiaefiling.gov.in
  • If you are not registered with the e-filing portal, use the "Register Yourself" link to register
  • You can view "Information Summery" under the "Complience" module and submit whether it pertains to you or any other person you know.
  • If you have already filed the return, you should submit the details under "Filing of Income Tax Return".  If not, you should pay your taxes and file the return.
  • You can keep a print out of submitted response for record.
How to use this ITR Form? 

These ITR Forms are developed using the latest in JAVA technology and effort has been made to make it user friendly, simpler and faster preparation of tax returns. This utility can be run on operating systems like Windows 7.0 or above and latest Linux, where Java Runtime Environment Version 7 Update 6 (jre 1.7 is also known as jre version 7) or above is installed. 

Note: 
  1. Please make sure you have the latest version of the utility before you start filling the information into the utility. 
  2. Please make sure you're connected to the internet for submission of the ITR Form. 
The following are features available in the ITR Form. 
1. New - On click of this button, a new copy of the ITR form will be available. If you have already opened the ITR form, you will be prompted to save the earlier copy. 
2. Open -This option is for importing the XML (successfully generated earlier) of a particular A.Y. Select the path and import the XML. You should check/validate the contents before finalizing upload/submission. 
3. Save - You can save your completed XML in the desired path/location of your desktop. 
4. Save Draft - This option can be used to save your XML. Please note you cannot upload an XML which was saved using the ‘Save draft’ option. Only a complete XML generated using the ‘Save’ option can be uploaded successfully. 
5. Prefill -This option can be used to auto-fill your Personal, Address and Tax details. You will be prompted to provide your User ID, Password and DOB/DOI to fetch the data. It is advisable to complete this activity before you start entering other data. Please check/validate the contents. Please make sure you're connected to the internet to avail this feature. 
6. Re-Calculate - On clicking this button, the data in the utility will be re-calculated. This is to provide with the utility based calculation/validation. 
7. Submit -Click this button to upload the XML in e-Filing portal. You'll be prompted to provide your e-Filing credentials, User ID, Password and DOB/DOI. Post submission, the success message and the acknowledgment number will be displayed. You will be able to download ITR-V. Please make sure you're connected to the internet to avail this feature. (if the return is submitted without a DSC) as well. 
8. Help - This option will let you know the shortkeys, instructions, settings and how to use this ITR form. 
9. Previous/Next- These will help you to navigate to the various tabs of the ITR form. 

Settings 
  • Following are the recommended settings to use the ITR Utility : 
Software: 
  • Java Runtime Environment Version 7 Update 6 (jre 1.7 is also known as jre version 7) or above Any Zip Software to unzip the utility 
Internet Connection: 
  • Minimum bandwidth of 256 kbps and above 
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 the requisite ITR Form

Dearness Allowance rate is 100% w.e.f. 01.01.2014

Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2014

No.1/1/2014-F-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated: 27th March. 2014
OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2014.

The undersigned is directed to refer to this Ministry’s Office Memorandum No.I-8/2013-E-II (B) dated 25th September, 2013 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 90% to 100% with effect from January, 2014.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No.1(3)/2008-E-11(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4. The payment of arrears of Dearness Allowance shall not he made before the date of disbursement of salary of March. 2014.

5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will he issued by the Ministry of Defence and Ministry of Railways, respectively.

6. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

sd/-
(A.Bhattacharya)
Under Secretary to the Government of India

Source: www.finmin.nic.in

Taxpayers to get digital signatures for E-filing of I-T returns - IT

In order to weed out the hassle of sending by post a hard copy of e-filed return, the Income Tax department has decided to bring in the facility of electronic signatures for taxpayers to endorse their bonafides.

The Central Board of Direct Taxes (CBDT), the apex office to formulate policies for the Income Tax department, has decided to implement the new mechanism by the end of the next financial year in March, 2015.

Official sources privy to the development told that the CBDT will get in touch with the Union Ministries of Law and Communications and Information Technology to establish the legal position and technology requirements respectively before it operationalises the new protocols for the e-returns called 'ITRV'.

"It has to be seen what will be the procedure to obtain electronic or digital signature by the taxpayers. There should not be an additional cost or procedural burden for the taxpayer who opts to file his or her I-T return online," a senior official said.

In case of digital signatures (used by corporate entities as of now), a bonafide statement that verifies the identity of the sender, it is required to be created by paying a fee and this requires regular renewal, which is why this is being seen as a burden on salaried class and other categories of small taxpayers.

In case of digital signatures (used by corporate entities as of now), a bonafide statement that verifies the identity of the sender, it is required to be created by paying a fee and this requires regular renewal, which is why this is being seen as a burden on salaried class and other categories of small taxpayers.

As per the norms in force at present, a taxpayer who files an e-return has to mandatorily send a copy of the same by post to the I-T department's Central Processing Centre (CPC) in Bengaluru.

However, in many cases the post would not reach the CPC and hence the tax department categorised the taxpayers return as null and void.

The department, sources said, wants to promote e-filing of I-T returns and it desires that e-filing should be "hassle free and sans any glitches", which will prompt more number of people to file their tax returns by this way.

The I-T department is also bolstered by the fact that more and more number of people are opting to file their returns online.

As per existing rules, the CPC, on receipt of the posted 'ITRV', sends an electronic acknowledgement to the tax return filer.

The problem arises when the document sent by post does not reach the CPC because of lapses on the part of the taxpayer or some other reason.

Source: www.economictimes.indiatimes.com

Banks remain open for Last Three days with extended hours to facilitate Tax Payments for Fin. Year 2013-14.

With a view to facilitate accounting of all the Government transactions for the current financial year (2013-2014) by March 31, 2014, it has been decided to conduct special clearing at all clearing houses across the country on Saturday, March 29, Sunday, 30 and Monday, 31, 2014 with extended hours till 8.00 PM. Due to this a public holiday of 31st March, 2014 has not been declared as public holiday and on Sunday, March 30, 2014 and on Monday, March, 2014 (at places where holiday under the Negotiable Instruments Act has been declared) agency banks would keep select branches open for transacting government business at locations identified by them based on volume of transactions.  The detailed scheduled is as below:

Earlier Income Tax Department Declared all Income Tax offices remain open on 29th, 30th and 31st March, 2014.

Agency banks doing Government business alone will be permitted to present instruments in the Special Clearing on other participating banks. Other member banks of the Clearing House (including the presenting banks) are required to keep their inward clearing processing infrastructure open during the Special Clearing hours and maintain sufficient balance in their clearing settlement account to meet settlement obligations arising out of the Special Clearing. 

Operating Procedure for tendering instruments through the three CTS grid Centers will be issued separately by the Presidents of the concerned Grid center. 

Member banks of Clearing Houses are advised to adhere to the instructions contained in this circular as well as the instructions received from the Regional offices of Reserve Bank of India and Presidents of respective Clearing Houses. 

Member banks are also advised to be in readiness to participate in the Centralised Payment Systems (RTGS and NEFT) on these days (March 29-31, 2014). A separate broadcast message in this regard will be issued through the respective system indicating the extended time window. 

Last Three days IT Offices remain open for filing of IT Return for Asstt. Yr. 2013-14.

CBDT has issued a notification to all IT officers regarding Iincome Tax Offices to remain open in last three days of Financial Year 2012-13 and assessment year 2013-14 to facilitate filing of Income Tax Return i.e. on 29th, 30th and 31st March, 2014 even Saturday and Sunday as normal office hours.  This order is issued under section 119(1) of the Income Tax Act, 1961.

The full notification No. F.No. 225/138/2014ITA.II dated 24.03.2014 is as under.

F.No.225/138/2014/ITA.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 24th Mar,2014

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

The Financial Year 2013-14 closes on 31.03.2014.  In view of Closer of Officer on 29th and 30th of March being Saturday and Sunday, and also on 31st March at some stations being Gudi Padava, Ugadi etc., the field Income Tax Offices through-our India shall remain open and the receipts counters shall also work during normal office hours on 29th, 30th, and 31st of March, 2014.  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 on 29th, 30th and 31st March, 2014 to facilitate filing of return of income and other related work of tax payers.  These instructions may be given wide publicity.

sd/-
(Richa Rastogi)
Under Secretary to the Government of India.

Free Download All ITRs & ITR-V (Acknowledgerment) in Excel Base Utility and PDF Format

Online Verification of TDS Certificate and Digital Signature.

Online Verification of TDS Certificate:

  1. Online Verification of TDS Certificate has been enabled on TRACES
  2. Users can verify the TDS Certificate on click of 'Verify TDS Certificate' link on


  • 'View TDS / TCS Credit' page
  • 'View Form 26AS' page
Digital Signature:

  • Registration of Digital Signature has been enabled on TRACES for deductors. Deductors can register their Digital Signature in PROFILE after registration

PAO:

  • PAO registration has been enabled on TRACES
  • PAO can view their Dashboard, Profile and Statement Status after registration

Justification Report:

  1. Justification Report has been enabled now for FY 2012-13 and Form Type 24Q


  • Deductors facing issues with justification report conversion are requested to download the latest justification report utility and submit the request again
  • Deductors can submit request for downloading Justification Request from FY 2007-08 onwards
  • Justification Report Utility 2.0 has been released.
  • Deductors facing issues with justification report conversion are requested to download the latest justification report utility and submit the request again

197 Certificate:

  • Validate 197 Certificate has been enabled on TRACES.
  • Please navigate to Statements/Payments -> Validate 197 Certificate

Form 16B:

  • Buyer of immovable property can download Form 16B after registering on TRACES as Tax Payer

Form 16 / 16A:

  • TDS certificate in Part A of Form 16 shall be generated only for those PANs that have been reported in Annexure II of 24Q statement for 4th Quarter. The deductors are, therefore, advised to ensure that they provide salary details of their employees employed for whole or part of the year in Annexure II of Quarterly TDS Statement for 4th Quarter

Form 26AS:

  • The tax deducted and paid under section 194IA of I T Act can be viewed online by the seller of the immovable property in their Form 26AS (Tax credit statement) from 22nd July, 2013 onwards

Default Processing:

  • Intimations u/s 200A of the Income Tax Act, 1961 for the statements filed during the Financial Year 2012-13 are being sent from TDS CPC
  • Levy u/s 234E of the Income Tax Act, 1961 is a statutory levy and cannot be waived
  • Deductors are advised that the demand raised in the intimation u/s 200A can be closed by making payment and filing the corresponding correction statement

Conso File

  • New file format for Conso File is available in 'Conso File Formats' under 'Quick Links'

Utilities:

  • While generating Form16 / 16A, if you are getting a message as "0 PDF files generated successfully", please download the updated version of the PDF converter utility 1.3L

Miscellaneous:

  • As per CBDT Circular No.07 of 2014, For Government deductors who are mapped to a valid AIN and has done payment of TDS/TCS through book transfer voucher (Book Identification Number-BIN), the due date for filing of TDS/TCS statement for 2nd, 3rd& 4th Quarters of financial year 2012-13 and for 1st, 2nd& 3rd Quarters of financial year 2013-14 has been extended upto 31st March 2014 as per CBDT Circular No.07 of 2014. (For detailed information see Circular & notification section under quick links)
  • For any type of correction in challan, contact your respective Jurisdictional Assessing Officer

Transaction based report:

  • Transaction based report download has been enabled on TRACES
  • Deductors can place a request by selecting Transaction based report from downloads menu


Official website for 7th Pay Commission of Central Government.

7th CPC – STEP 1

The Prime Minister of India gave consent to the formation of 7th CPC on 25-09-2013.

Finance Minister P. Chidambaram announced that the Prime Minister has formally given his consent to the formation of the 7th CPC. Announcement was also made that it would be implemented on 01.01.2016.

Usually, not only employees, news agencies also would start guessing when the announcement would be declared. But this time, there were no such speculations. It has become clear that the Government’s decision and the date of announcement of 7th CPC are being kept secret.

The sudden announcement had caught everybody by surprise. There is no doubt about the fact that it was a pleasant surprise to all Central Govt Employees...!

7th CPC – STEP 2

Prime Minister of India gave his consent to the Composition of 7th CPC.

On 04-02-2014, Finance Minister P Chidambaram announced that the Prime Minister has given his approval to the composition of the 7th CPC. With the formation of a four member committee, led by Justice Ashok Kumar Mathur, the 7th CPC moved to the next stage.

With the Confederation announcing a strike on the 10th and 11th of this month, and with all the major Federations of Central Govt Employees and also Railways in the country declaring their intention to protest to central government, the move is being viewed by many as Government’s attempt to pacify.

7th CPC – STEP 3

Cabinet gives its approval to the 7th CPC Terms of Reference

On 28.02.2014, the Central cabinet clearly explained and gave its approval to the Terms of Reference of 7th Central Pay Commission.

One of the salient features was that the Commission has to present its recommendations to the Government within 18 months, and, if required, also submit an Interim Report.

There was no word about the much-anticipated Interim Relief and DA Merger.

7th CPC - Step 4

Finance Ministry created a webpage for 7th CPC

A webpage has been created by the Ministry of Finance for 7th Central Pay Commission.

In order to publishing orders and announcements of 7th CPC, the Finance Ministry has launched a new webpage in their official portal under the category of 'Employees Corner'.

Visitors are requested to scroll down the website home page of 'Ministry of Finance' and find at the bottom of right side corner.

At present they have published only one Government Gazette that 'Resolution of Terms of Reference' of 7th Central Pay Commission, which was published on 28th February 2014.

Source: www.90paisa.blogspot.com

PPF & Sr. Citizens Saving Scheme Interest Rates w.e.f. 01.04.2014 and Other more.

Recently RBI has published a notification No. RBI/2013-14/526 dated March 21, 2014 for Interest rates on most popular and atractive Income Tax Saving Schemes i.e. Public Provident Fund Scheme, 1968 (PPF Scheme, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004).  In small Tax Saving Schemes, small Investors earn interest on PPF savings and take Tax Benefit from Income Tax as same SCSS shemes also very useful for Sr. Citizens Taxpayee, even if their Taxable Income is less than Tax exemption limit of 10% slab.

Public Provident Fund Scheme, 1968 (PPF Scheme, 1968) and

Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates


Please refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings schemes, wherein it was indicated that as per Government’s decision on revision of interest on small savings schemes, the interest rates on various small savings schemes for every financial year will be notified by the Government before April 1st of that year.

The Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II dated 4th March 2014, advised the rate of interest on various small savings schemes for the financial year 2014-15. Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2014-15, effective from April 01, 2014, on the basis of the interest compounding/payment built-in in the schemes, will be as under:

Scheme
Rate of Interest w.e.f.
01.04.2013
Rate of Interest w.e.f. 01.04.2014
5 Year SCSS, 2004
9.2% p.a.
9.2% p.a.
PPF, 1968
8.7% p.a.
8.7% p.a.

The Rates of Interest on various small savings schemes for the Financial Year 2014-15 effective from 01.04.2014, on the basis of the interest compounding/payment built-in in the schemes, shall be as under :


Looking to save tax? Don’t be taken in by hype on Section 80 C

Come March, Section 80 C enters the popular lexicon. We are talking about Section 80 C of the Income-Tax Act here. It allows tax deductions of up to Rs 1 lakh in some specific investments such as Public Provident Fund, 5-year bank fixed deposits and tax-saving mutual fund schemes, among others. 

Many taxpayers always grumble that they don't get enough time to make an intelligent investment choice to save taxes. Financial advisors, on their part, blame it on the habit of finalising tax-saving investments at the eleventh hour as the main reason why many taxpayers get stuck with bad investments. 

But aren't they making a big deal about Section 80? Think of it: The section allows a maximum deduction of only Rs 1 lakh. An average taxpayer would have claimed at least half of it if s/he is contributing to employees provident fund — Here are the numbers: Rs 4,000 to EPF every month adds up to Rs 48,000 in a year. 

Add to that another Rs 10,000-15,000 towards insurance premium, and you will see that one really doesn't have much to save under Section 80. Remember, we have used conservative numbers for both EPF contribution and insurance premium in the example. 

In fact, most individuals may be paying way above the figure in the example because they mostly prefer expensive insurance policies with savings and investments elements over a plain vanilla term plan. 

"The importance of this section is certainly overdone. For example, we never get to talk about this section to our clients because most of them have already exhausted it. Many well-paid individuals need not do anything to cover the section as their EPF and life insurance premium take care of it," says Suresh Sadagopan, principal planner, Ladder7 Financial Advisories. He also says the media and experts play up the importance of this section because most people are aware of its existence. 

"Most people know about only a few sections that deal with deductions. For example, everyone knows about Section 80 D that deals in health cover premiums. They also know tax deduction is available for repayment of home loan interest or on donations. 

But they wouldn't know sections that deal in specific deductions like education loan or employer's contribution to NPS," adds Sadagopan. Several financial advisors agree. 

They argue that overemphasis on this section is leading to rampant mis-selling of investments covered under it. "Most so-called experts know that an average individual hardly totals up the numbers before shopping for tax-saving investments. 

They just give these unsuspecting individuals some random figure and push some expensive insurance policy," says a wealth manager, who doesn't want to be named. 

He says this could explain why the insurance policy sales zoom in the last three months of every financial year. This is a real cause of concern because many individuals end up investing well above the permissible Rs 1 lakh limit under Section 80C, say experts. Needless to say, such investments don't qualify for tax deductions. 

And experts say many taxpayers don't even know about it until they meet a financial advisor who would break the news to them. "The focus has to shift from investing to save taxes to overall investment and saving taxes. The idea is not about just to save taxes, but maximising returns with the help of tax breaks and meeting your financial goals on time," says Sadagopan. 

"That can happen only if one fixes financial goals and makes regular investments to achieve them. Once you start the process, you will realise that chasing short-term trends, focusing alone on taxes or returns can only distract you from your final goal. In fact, you will figure out that none of these things will matter in the final analysis," he adds. 

Source: www.economictimes.indiatimes.com

Due date to post ITR-V for Asstt.Year 2012-13 & 2013-14 Extended to 31-03-2014.

There are many taxpayers who have uploaded their Income Tax Returns (without digital signature Certificate) for A.Y. 2OI,2-13 [filed between 1.4.2012 to 31.1O.2O13] and for A.Y. 2013-14 [filed between 1.4.2O13 to 31.1O.2O13], but have either not filed the corresponding ITR-V or have filed it with the local Income-Tax Office. ITR-V is accepted only at CPC, Bengaluru by ordinary or speed post. Therefore an opportunity is being given to such taxpayers to regularize their Income-tax returns.

All Such taxpayers may mail the ITR-V, by 31"t March, 2O14, by ordinary post or speed post at Post Bag No. I, Electronic city Post Office, Bengaluru-560100 (Karnataka). Taxpayers who have filed their ITR-V with the local Income-tax office may again mail their ITR-V to the CPC by 31st March, 2014. Those taxpayers who have earlier mailed their ITR-V, but have not received the acknowledgement e-mail from the CPC, may mail their ITR-V to the CPC again.

The ITR-V form should be mailed to the CPC only at the above address by ordinary post or speed post. Taxpayers may note that no other place or form of delivery will be accepted.

Taxpayers may also note that without acknowledgement of the ITR-V from the CPC it would not be possible for the Income -tax Department to process the Income-tax returns or issue any refunds there from, as these would be treated as not having been filed with the Department.

Download Notification (Click Here)

Last Date of Professional Tax e-Return for Fin. Year 2013-14 is 31.03.2014.

An employer registered under this Act shall furnish monthly return as per the provisions of clause (c) of sub-rule (3) of rule 11 till the end of the year in which he is granted the certificate of registration Date 14/7/2011.

Professional Tax Department (State Government) had issued a notification VAT/AMD.1010/IB/PT/Adm-6 Date 14/7/2011 regarding  Filling of e-return for all PTRC holders is made mandatory and As per Government Notification No PFT.1012/ C.R.29/ Taxation-3 Date 14-June-2012. every employer holding Profession Tax Registration Certificate (PTRC) shall pay Tax, Interest, Penalty or any amount due and payable by or under the said act electronically With effect from 01-July-2012 is mandatory.

Mode of Return:

  • Amount of Profession Tax is exceed Rs. 50000/- annualy they submit PT Return Monthly.
  • Profession Tax collection not exceed Rs. 50000/- per annum they submit PT Return Halfyearly or Yearly.

Procedure for PT e-Return:
Tax is to be paid in chalan No MTR-6, and online return should be submitted in Form IIIB. Before submission of online return Employer has to enroll himself for e-services (one time activity).
(For detail process of enrollment of PTRC e-services and filling of e-return, please see the demo at www.mahavat.gov.in >> e-services >> Instruction Sheets for e-services >> PTRC e-services Enrollment and e-return)

Due Date:

  • For Financial year 2013-14 due date of PT e-Return is 31st March, 2014.

Penalty:

  • If PT Return not lupload in due time Rs. 1000/- charged as Late Fee.

Download PT e-Return Software (Click Here)

Banknotes Pre-2005 series - FAQ's

1. What are the pre-2005 series banknotes?
The RBI issued Mahatma Gandhi series (MG series) 2005 banknotes in the denomination of ` 10, ` 20, ` 50, ` 100, ` 500 and ` 1000. These notes contain some additional / new security features as compared to the 1996 MG series. All banknotes issued before the 2005 MG series are called as pre-2005 series banknotes.

2. How can one distinguish the pre-2005 series banknotes?
Apart from the additional security features, the 2005 MG series banknotes have the year of printing on the reverse of the notes in the lower middle portion. Banknotes printed before 2005 do not have the year of printing on the reverse side and hence can be easily distinguished.

3. Why has RBI decided to withdraw pre-2005 series banknotes?
Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005. The withdrawal exercise is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time. The RBI has already been withdrawing these banknotes in a routine manner through banks. It is estimated that the volume of such banknotes (pre-2005) in circulation is not significant enough to impact the general public in a large way and the members of public may exchange the pre- 2005 series banknotes at bank branches at their convenience.

4. Do the pre-2005 series banknotes cease to be legal tender?
The notes issued before 2005 shall continue to be legal tender. The notes are only being withdrawn from circulation and this withdrawal exercise is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time.

5. Can the pre-2005 series banknotes be used for normal transactions?
Members of the public can continue to freely use these notes for their transactions and can unhesitatingly receive these notes in payment, as all such notes continue to remain legal tender.

6. Is there any time limit for exchanging these notes?
These notes can be freely exchanged at any bank branch till January 1, 2015. The procedure to be followed after January 1, 2015, shall be communicated by RBI in due course.

7. How is RBI ensuring that these notes are withdrawn from circulation?
Banks have been advised to stop re-issue of the pre-2005 series notes over the counters/through ATMs and they have been instructed to forward them to the Reserve Bank of India.

8. Is there any restriction on the number of pieces that can be exchanged?
No. There is no such restriction. Banks have been advised to freely exchange these notes till January 1, 2015.

9. Is it necessary to be a customer of the bank to exchange the pre-2005 series notes from its branches?
No. Banks have been advised to freely provide this exchange facility to all members of public, whether customer or non-customer.

10. Is it necessary to get cash in exchange or the amount can be credited in one’s account?
It is not necessary to get cash in exchange for the pre-2005 notes. If a person desires, he can get the amount credited in his bank account.

11. Is there any fee to be paid for the exchange facility?
No. The exchange facility is to be provided free of cost by all bank branches.

Source: www.caclubindia.com

TDS on Salary Income for Financial Year 2013-14

This is to inform that the CBDT has issued a detailed circular in the context of Tax Deduction at Source on Salary Income vide Circular 8 of 2013 dated October 10, 2013.

The Circular, inter alia, provides guidelines on the following:

You are advised to refer to Section 200(3) of the Act, read with Rule 31A, which reads as follows:

  • Computation of Income in context of salaried employees
  • The manner of deduction of tax at source, including the rates of TDS
  • Due dates for deposit of Tax Deducted at Source
  • Due dates for filing of Tax Deducted at Source
  • Issuance of Form 16 to the employees

The Circular, as above, is attached along with this email to enable you to comply with the requirements of the exact provisions of the Act.
You are also advised to:

  • Report correctly the PAN and TDS amount in the Statement, which helps the taxpayer in claiming correct TDS Credits besides generating correct TDS Certificates
  • Verify the contents of TDS Certificates as downloaded from TRACES before issuing the same to the taxpayers

Please note that filing of the TDS Statements within the due date is mandatory to avoid Late Filing Fees under Section 234E of the Income Tax Act, which is applicable @ Rs. 200 per day of the delay.

For any assistance, you can write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.
CPC (TDS) is committed to provide best possible services to you.

Rs. 10 Lakhs G.T. Income Taxpayee can save Income Tax upto Rs. 25000/- or 50% of Saving in RGES Scheme.

From Asstt. Year 2013-14 a new Section added in Income Tax i.e. 80CCG.  This section provide Tax Benefit to Taxpayee Investors upto Rs. 25000/- or Max. 50% of saving amount in Rajiv Gandhi Equity Saving Scheme-2012.  This scheme is applicable for those assessee who is resident individual and his gross Total Income does not exceed upto 10/- per annum.

Amount of deduction 
The amount of deduction is at 50% of amount invested in equity shares/units. However, the amount of deduction under this provision cannot exceed Rs. 25,000.

Withdrawal of deduction
If the assessee, after claiming the aforesaid deduction, fails to satisfy the above conditions, the deduction originally allowed shall be deemed to be the income of the assessee of the year in which default is committed.

Definition of "New Retail Investors":

  1. Any individual who has not opened a demat account and has made not made any transaction in the derivative segment.
  2. Any individual who has opened a demat account but has not made any transaction in the equity or derivative segment.
  3. Any individual who is not the first account holder of existing joint demat account shall be deemed to have not opened a demat account.

Eligible Investments:

  1. Equity Share in BSE-100 or CNX-100
  2. Equity shares of Maharatna, Navratna, Miniratna Compaines
  3. Units of eligible Exchange Traded Funds and Mutual Funds
  4. Follow on public offer on 1 and 2 above
  5. Initial Public Offer of eligible public sector undertaking i.e. PSUs in which government shareholding is at least 51% which is scheduled for getting listed and whose annual turnover is not less than 4000 crore rupees during each of preceding 3 years.

The Salient features of the Scheme are as under:

  • Scheme is open to new retail investors, identified on the basis of their PAN numbers. This includes those who have opened the Demat Account but have not made any transaction in equity and /or in derivatives till the date of notification of this Scheme and all those account holders other than the first account holder who wish to open a fresh account.
  • Those investors whose annual taxable income is up to Rs. 10 Lacs are eligible under the Scheme.
  • The maximum Investment permissible under the Scheme is Rs. 50,000/- and the investor would get a 50% deduction of the amount invested from the taxable income for that year.
  • Under the Scheme, those stocks listed under the BSE 100 or CNX 100, or those of public sector undertakings which are Navratnas, Maharatnas and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the above companies would also be eligible under the Scheme. IPO’s of PSU’s, which are getting listed in the relevant financial year and whose annual turnover is not less than Rs. 4000 Crore for each of the immediate past three years, would also be eligible.
  • The best part is that, Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible securities as their underlying and are listed and traded in the stock exchanges and settled through a depository mechanism have also been brought under RGESS.
  • To benefit the small investors, the investments are allowed to be made in installments in the year in which tax claims are made.
  • The total lock-in period for investments under the Scheme would be three years including an initial blanket lock-in period of one year, commencing from the date of last purchase of securities under RGESS.
  • After the first year, investors would be allowed to trade in the securities in furtherance of the goal of promoting an equity culture and as a provision to protect them from adverse market movements or stock specific risks as well as to give them avenues to realize profits.
  • Investors would, however, be required to maintain their level of investment during these 2 years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year. The calculation of 270 days includes those days pursuant to the day on which the market value of the residual shares /units has automatically touched the stipulated value after the date of debit.
  • The general principle under which trading is allowed is that whatever is the value of stocks / units sold by the investor from the RGESS portfolio, RGESS compliant securities of at least the same value are credited back into the account subsequently. However, the investor is allowed to take benefits of the appreciation of his RGESS portfolio, provided its value, as on the previous day of trading, remains above the investment for which they have claimed income tax benefit.
  • For the purpose of valuation of shares, the closing price as on the previous day of the date of trading will be considered so that new investors are certain about their debits and credits into the account.
  • In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn.

Procedure for investment under the Scheme:A new retail investor shall make  investments under the Scheme in the following manner, namely:-

  • the new retail investor may invest in one or more financial years in a block of three consecutive financial years beginning with the initial year;
  • the new retail investor may make investment in eligible securities in one or more than one transaction during any financial year during the three consecutive financial years beginning with the initial year in which the deduction has to be claimed;
  • the new retail investor may make any amount of investment in the demat account but the amount eligible for deduction under the Scheme shall not exceed fifty thousand rupees in a financial year;
  • the new retail investor shall be eligible for the tax benefit under the Scheme only for three consecutive financial years beginning with the initial year, in respect of the investment made in each financial year;
  • if the new retail investor does not invest in any financial year following the initial year, he may invest in the subsequent financial year, within the three consecutive financial years beginning with the initial year, in accordance with the Scheme;
  • the eligible securities brought into the demat account, as declared or designated by the new retail investor shall be under a lock-in for a period of three years in accordance with the provisions of paragraph 7;
  • the eligible securities brought into the demat account, in respect of which the assessee is eligible for deduction under the Scheme, shall be under a fixed lock-in during the first year, as per the provisions of the paragraph 7, unless the new retail investor specifies otherwise, and for such specification, the new retail investor shall submit a declaration in Form B, either in electronic or physical form, to the depository participant indicating that such securities are not to be included within the above limit of investment;
  • the new retail investor shall be eligible for a deduction under sub-section (1) of section 80CCG of the Act in respect of the actual amount invested in eligible securities and in respect of which a declaration in Form B has not been made, subject to the maximum investment limit of fifty thousand rupees in a financial year;
  • the new retail investor who has claimed a deduction under sub- section (1) of section 80CCG of the Act in any assessment year shall not be allowed any deduction under the Scheme for the same investment for any other assessment year;
  • the new retail investor shall be permitted a grace period of seven trading days from the end of the financial year so that the eligible securities purchased on the last trading day of the financial year also get credited in the demat account and such securities shall be deemed to have been acquired in the financial year itself;
  • the new retail investor can make investments in securities other than the eligible securities covered under the Scheme and such investments shall not be subject to the conditions of the Scheme nor shall they be counted for availing the benefit under the Scheme;
  • the deduction claimed shall be withdrawn if the lock-in period requirements of the investment are not complied with or any other condition of the Scheme is contravened by the new retail investor.

Advance Tax Payment Due Date extended to 18.03.2014

Date of Payment of the March Instalment of Advance Tax Extended from 15th March 2014 to 18th March 2014

The final instalment of Advance tax for Financial Year 2013-14 is required to be paid on or before 15th March, 2014 by the tax payers who are liable to pay advance tax. These taxpayers can make payments in the designated branches of the authorized banks, electronically or physically, as per law. The banks are open for half day on 15th March, 2014, being a Saturday. Accordingly, to facilitate payment of this instalment of Advance tax for the Financial Year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of Advance Tax, from 15th March, 2014 to 18th March, 2014. Taxpayers, therefore, can now pay their advance tax instalment by 18th March, 2014 without entailing any consequential interest for deferment.

How to Pay Advance Income Tax? (Click Here)
Calculate Your Advance Tax Liability (Click Here)
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Expected dearness allowance will increases 3% to 7% from July 2014.

Recently the issue of 50% DA Merger has reached the peak of expectations. Though the central government knew this development, the govt has knowingly said nothing against or favor of 50% DA Merger. Its silence on this important issue simply added the fuel to the fire of expectation. After the Election announcement, the hope on 50% DA merger is now slowly eroding. Many central government employees Federations expressed their disappointment with 7th CPC Terms of reference and merger of 50% DA was not considered by central government. After this disappointment the central government employees are now getting back to their routines. So they have started thinking about what next..!

As the rate of dearness allowance from January 2014 has been declared, the necessary order for payment of Additional installment of Dearness Allowance from January 2014 has to be issued by Finance Ministry. The enhanced rate of Dearness allowance will be paid w.e.f .1.1.2014. The enhanced rate will be paid with the disbursement of salary for the month of March 2014. The increase of dearness allowance became due from
January 2014 to February 2014 will be paid as arrears.

Let us move on to ‘Expected dearness allowance from July 2014’

what will be the rate of DA from July 2014 ?

The AICPIN for Industrial Workers for Seven Months from July 2013 to January 2014 have been released by Labour Bureau. The AICPIN for last two Months i.e December2013 and January 2014 have been declined by 4 and 2 points and pegged at 239 and 237 respectively. At present it is quite difficult to predict the trend of the Consumer Price Index for remaining 5 Months, as so many factors like election and policies of new government involved in it.

However, according to these seven months AICPIN, we have three Probabilities …

Sr. No.
Probabilities
Expected Increase in Dearness allowance from July 2014
Expected DA from July 2014
1
If this declining trend continues for remaining 5 Months by 1 or 2 points
3%
103%
2
If the trend continues with movement between plus or Minus 2 points
5%
105%
3
If it continues with increasing trend by 2 points
7%
107%

According to the AICPIN released till now, the above possibilities have been arrived. As per above prediction the expected dearness allowance from July 2014 will be from 103% to 107%.

New Procedure of challan correction by Assessing Officers and Banks with Time Limit Chart.

Under OLTAS (On Line Tax Accounting System), the physical challans of all Direct Tax payments received from the deductors / taxpayers are digitized on daily basis by the collecting banks and the data transmitted to TIN (Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers.

NSDL receives tax collection data as uploaded by the bank. NSDL is not authorized to carry out any changes in the data sent by the bank to TIN.
The fields that can be corrected by the Taxpayer through Bank are tabulated below:
Sl. No.Type of Correction on ChallanPeriod for correction request (in days)
1PAN/TANWithin 7 days from challan deposit date
2Assessment YearWithin 7 days from challan deposit date
3Total AmountWithin 7 days from challan deposit date
4Major HeadWithin 3 months from challan deposit date
5Minor HeadWithin 3 months from challan deposit date
6Nature of PaymentWithin 3 months from challan deposit date
Note :
1.   Above correction mechanism is applicable only for physical challans with deposit date greater than equal to September 1,       2011.
2.   Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank.
3.   For challans with challan deposit date from September 1, 2011 to September 30, 2011, the time limit for correction in TAN/PAN,       Assessment Year and Amount will be within 45 days from challan deposit date.
4.  The fields that can be corrected and the entity authorized to carry out corrections on challan with deposit date less than       September 1, 2011 are as below:
Sl. No.Type of Correction on ChallanPerformed By
1PAN/TANAssessing Officer
2Assessment YearAssessing Officer
3Major HeadAssessing Officer /Bank
4Minor HeadAssessing Officer
5Nature of PaymentAssessing Officer
6Total AmountBank
7NameBank

5.  For rectifications in challans paid through online mode (internet challan) , taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).

New Procedure to obtain duplicate copy of Provisional Receipt of filed eTDS/TCS Return.

In case if Account Office needs duplicate copy of Provisional Receipt Number, AO is required to send request letter to NSDL.

The format in which request should be sent to NSDL by the Account Office is as under :-

Request letter by Account Office in Letter Head
(Letter should be signed & stamped by authorized signatory along with name and designation of authorized person)

Date: ..............
To

Senior Vice President
TIN Operations
NSDL e- Governance Infrastructure Limited
2nd Floor, Times Tower
Kamala Mills Compound
Senapati  Bapat  Marg
Lower Parel, Mumbai - 400 0013

Dear Sir

Sub: Request for copy of Provisional Receipt Number

It is hereby requested to kindly send us duplicate copy of Provisional Receipt number. The details of Provisional receipt along with purpose of request are as under:
  1. Name of Account Office :
  2. Account Office Identification Number (AIN) :
  3. Provisional Receipt Number of Form 24 G statement:
  4. Month and Year
  5. Purpose for requesting copy of provisional receipt.

As understood, the copy of provisional receipt shall be sent by the NSDL on the email ID as mentioned in the last Form 24G statement accepted at TIN.

Sign and stamp of the authorised signatory:

Name of the authorised signatory:

Designation of the authorised signatory:

Request letter should be forwarded to NSDL at the following address:
TIN Operations,
NSDL e-Governance Infrastructure Limited
2nd Floor, Times Tower,
Kamala Mills Compound,
Senapati Bapat Marg,
Lower Parel (W),
Mumbai - 400013.

Super scribe the envelope with "Request for duplicate copy of Provisional Receipt"

Download Request Letter (Click Here)

Is the amount taxable received after surrender of Tenancy Right ?

The tenancy right is a capital assets and surrender of tenancy right for Rs. 80 Lacs would yield Long Term Capital Gain (LTCG).

The benefit of 10% tax rate without indexation is available only on transfer of listed securities or unit or zero coupon bonds. The benefit is not available to LTCG arising from transfer of tenancy right or any other capital assets.

The important question that remains here is about the tax-ability of such amount. 

Tax-ability, tax saving options & other implication would depend upon multiple factors and documents. Apparently, it appears that the amount would be taxable in the hands of the firm as the tenancy right belongs to firm.

MEMORANDUM OF AGREEMENT

1. Date: _____________________
2. Place: ____________________
3. Parties:
3.1 _____________________, son of _________________, by faith – _____,  by Nationality – Indian, by Occupation - ________, residing at _______________________________________.
(Tenant/First Party, includes successors-in-interest and/or assigns)
AND
3.2 ____________________, son of _________________, by faith – _____, by Nationality – Indian, by Occupation - ________, residing at ______________________________________.
(Landlord/Second Party, includes successors-in-interest and/or assigns)

Tenant, Landlord collectively Parties and individually Party.

NOW THIS MEMORANDUM OF AGREEMENT WITNESSES AS FOLLOWS:
4. Background:
4.1 Ownership of the Second Party: The Second Party is the sole and absolute owner of and/or otherwise well and sufficiently entitled to the land and building situate and lying at the Premises known as ____________________________________ (Said Premises).
4.2 Tenancy of the First Party: The First Party is a monthly tenant in respect of a _______ [character of use] room having an area of _______ Sq. ft. be the same a little more or less on the ______ floor of the building in the Said Premises [Tenanted Portion] , at a monthly rental of Rs. __/- (Rupees _____________) only, payable according to English calendar month. The Tenanted Portion is described in the 1st Schedule below.
4.3 Proposal and Acceptance: The Landlord has now approached the Tenant to surrender the tenancy and all other rights incidental thereto due to some exigencies and the Tenant has agreed to surrender the tenancy and all other rights in the Tenanted Portion as well as to vacate the same by delivering khas and peaceful possession of the Tenanted Portion to the Landlord, subject to payment of a sum of Rs. _______/- (Rupees _______________) only (Consideration) by the Landlord to the Tenant towards the reimbursement the cost for shifting and rehabilitation.
4.4 Mutual Understanding & Recording of the Terms: The Parties upon negotiation have amicably arrived at the terms and conditions for such surrender of tenancy and conclusive and comprehensive terms and conditions superseding all previous documents and understandings, if any, are now being recorded by this Memorandum.   

NOW IT IS HEREBY AGREED AND DECLARED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

1. Surrender of the Tenancy: The Tenant doth hereby agree to surrender his tenancy in respect of the Tenanted Portion, described in the 1st Schedule below in favour of the Landlord, upon payment of the Consideration by the Landlord.
2. Payment of the Consideration: The Landlord shall pay to the Tenant a total sum of Rs.__________/- (Rupees ____________) only towards the cost of shifting and rehabilitation charges and/or compensation for the inconvenience suffered by the Tenant to vacate the Tenanted Portion in favour of the Landlord in the manner specified in the Payment Schedule, described in the 2nd Schedule below.
3. Advance Payment: The Landlord at or before hereof has paid to the Tenant a sum of Rs.__________/- (Rupees ______________) only as an advance and part payment of the Consideration and the Tenant doth hereby as well as by the receipt and memo hereunder written, admit and acknowledge thereof.
4. Effective Date: The Tenant shall cease to have all his right, title and interest in the Tenanted Portion including the right of his monthly tenancy on and with effect from __________ (Effective Date).
5. Delivery of Possession: Within __________ from the date hereof the Tenant shall vacate and hand over peaceful and khas possession of the Tenanted Portion to the Landlord and shall obtain written receipt and acknowledgement thereof from the Landlord.
6. Release from the Liability: Both the Parties release and discharge each other from all liabilities arising under the Tenancy or any variation of the terms of the tenancy with effect from the Effective Date.
7. Representation & Warranty:
7.1 By the Tenant:
7.1.1 After the Effective Date the Tenant shall have no right, title and interest in and over the Tenanted Portion whatsoever and responsibility towards the Landlord, as well as no other or further claim and/or demand from the Landlord, save as specifically stated herein.
7.1.2 Upon delivery of the possession of the Tenanted Portion to the Landlord, the Tenant shall hand over vacant and peaceful possession of the Tenanted Portion after removing all his goods and belongings and thereafter shall have no right to enter into the Tenanted Portion and/or in the Said Premises.
7.1.3 The Tenant has paid and cleared all electricity bills, telephone bills and all other utility bills and there is no arrear in respect thereof.
7.1.4 The Tenant has not created any interest over his monthly tenancy and/or has not done any act or deed which may prejudicially affect the right of tenancy.
7.2 By Purchaser:
7.2.1 Upon execution hereof the Landlord shall have no other or further claim and/or demand whatsoever from the Tenant save and except as specifically stated herein.
7.2.2 The Landlord shall pay the Consideration to the Tenant in terms of the Payment Schedule below.   
8. Interpretation:
8.1 Number: Words denoting the singular number include, where the context permits and requires, the plural number and vice-versa.
8.2 Headings: The headings in this Memorandum are inserted for convenience only and shall be ignored in construing the provisions of this Memorandum.
8.3 Definitions: Words and phrases have been defined in this Memorandum by bold print and by putting them within brackets. Where a word or phrase is defined, other parts of speech or grammatical forms of that word or phrase shall have corresponding meaning.

1st Schedule
(Tenanted Portion)
……………………………………….................................……

2nd Schedule
(Payment Schedule)
…………………………………………………………………..
9. Execution and Delivery:
9.1 In Witness Whereof the Parties have executed and delivered this Memorandum on the date mentioned above.
____________________        ____________________
     [Tenant]                                   [Landlord]
       
Witnesses:
1. Signature: _________________________
Name:
Father’s/Husband’s Name:

Address: