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Income Tax :- File Your Income Tax Return upto 30.11.2014 if already not submitted.

Wednesday, November 26, 2014 | comments

Friends,   Income Tax department has already issued a notification regarding submission of Income Tax Return upto 30.11.2014 for those assessee :-

a)  Who is required to file his return of Income by 30th September 2014 as per Explanation 2(a) to Sec 139(a) of the Income-tax Act 1961 and 

b) is also required to get his accounts audited under section 44AB of the Act or is a wokring partner of a firm whose accounts are required to be audited under section 44AB of the Act. 

-Read Order u/s 119 dated 26/09/2014 (Click Here)
-Levy of Interest u/s 234A extended upto 30.11.2014 (Click Here)

HC stays Levy of Interest U/s. 234A on I-T returns filed till extended due date of 30.11.2014

Thursday, November 20, 2014 | comments

Due Date for filing of return of Income for Assessment Year 2014-15 Extended from 30th September, 2014 to 30th November, 2014 in Specified Cases

The CBDT had issued the notification no. F.No.153/53/2014-TPL (Pt.I) dated 26.09.2014 extending the due date to comply with the judgments of various high courts, such as Gujarat, Bombay, Andhra Pradesh and Madras.

High Courts have earlier held that As the due date for filing of the tax audit report was extended till November 30 (due to late Introduction of several changes in Form 3CD), it was logical to also extend the due date for filing of the I-T return also to November 30.

During hearing on the appeal on 22.09.2014 Honourable Gujarat High Court has directed the CBDT to extend the due date for filing of return of income to 30.11.2014 for A.Y. 2014-15 for all purposes, inter-alia, carry forward of losses, allowability of deductions under Sections 80-IA, 80-IB, 80-IC, 80-ID and other sections which requires return to be filed before due date. However, such extension has been granted subject to charge of interest under Section 234A (For delay in filing of Return of Income) for the period commencing from 01-10-2014 and up to the actual date of filling the return of income. Interest under section 234A will not be levied if taxpayer covered under tax audit provisions pays the tax on or before 30.09.2014 despite filing of return after 30.09.2014.

Anita Sumanth, advocate, representing the All India Federation of Tax Practitioners, and an individual petitioner, G Baskar, submitted to the Madras high court that the levy of interest under section 234A of the Income Tax Act,1961 is unjustified and against the provisions of the law. If the penalty was levied, the purpose of extending the due date of filing the I-T return itself was defeated. She submitted that the Gujarat high court order relating to levy of interest under section 234A was only a suggestion or a concession, it was not an interpretation of law and it was opposed to statutory provisions.

Based on the submissions, the Madras high court granted an interim stay on the levy of interest. It held, “I-T returns shall be accepted by tax authorities without insisting upon any payment of interest under section 234A.”

TDS :- Different Section Codes in a Single Challan & Excess Challan Amount can be adjusted in Next Year.

Saturday, November 15, 2014 | comments

Friends,  CPC (TDS) team had communicated to their deductors through email on 10-09-2014 that there is no effect of Section Code mentioned in Challan and Deductor can deposit a single challan for payment of TDS deducted in a month.   There is no issue of Section Codes 94C, 94A , 94 J, 92A , 92B , 94H etc.  

Secondly excess amount of TDS can be used in the next Financial Year or adjustment of Defaults for previous years issued by Income Tax Department  etc. 

Now, there is no use to update Section Code through bank or assessing authority if  it is wrongly mentioned in challan.   The same can be corrected while submitting TDS Statement.  

Keeping in view of these important changes, every deductors should devote some time in reading the following communication of CPC (TDS) Team. 

Dear Deductor,

As per the records of the Centralized Processing Cell (TDS), it has been observed that you have used multiple challans in a month, for payment of Tax Deducted.

For Deductor's convenience, CPC(TDS) has established processing logic in the system that can accept a Single Challan for reporting of Tax Deposited in following circumstances :

  • Payment of Tax Deducted under different sections of the Income Tax Act, 1961:

     • The CPC(TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.
     • Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also. 
Situation prior to Financial Year 2012-13
Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details
Situation after Financial Year 2012-13
Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement.

  • Payment of Tax Deducted for different Assessment Years:

     • In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statement.
     • Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2,3&4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.
  • Different challans used for the purpose of reporting multiple Deductees associated with different branches with same TAN:

     • The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.
     • A single challan can be used for the purpose of reporting Tax Deducted for such deductees.
     • Example: If a Bank has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.
Based on the above information, you may use a single challan in a month towards payment of Tax Deposited. For any assistance, you can also write to or call our toll-free number 1800 103 0344.
CPC (TDS) is committed to provide best possible services to you.


Archives (Old Procedure Click Here)

Tally :- Accounting Software with Payroll Management Software

| comments

Enjoy the Benefits of
             an Integrated Payroll management software!

Tally.ERP 9 delivers integrated Payroll management software with all the necessary Payroll compliances built in. The Payroll management feature handles simple Payslip generation right up to complex allied processes including Loans and Advances, Salary revision and Arrears calculation, Deductions and ad-hoc payments etc.

Tally.ERP 9 intergrated Payroll management software also covers a wide range of functions including:

• Create and maintain the employee database viz. contact/personal/bank account/statutory details etc., expat details like passport, Visa and work permit

• Employee group or department wise categorisation

• Attendance, overtime, leave or production details

• Multiple salary structures for different groups of employees for example, department-wise salary structures and processing

• Support Salary revision and arrears calculation both as prospective and retrospective change

• Tracking of loans and advance paid to employees and defining multiple criteria for recovery of such advances (single or multiple installments from the employee's salary)

• Complete support to implement Provident Fund and Employee Insurance Schemes along with Professional Tax calculation

• Supports Gratuity as per the specified criteria
Benefits of using Tally.ERP 9 intergrated Payroll management software

• Time spent on processing salaries and paper work can be reduced to a great extent

• Accurate and timely salary processing

• Salary calculation against employee attendance is much easier

• Generate the Payment Advice to instruct the bank for salary payment

• Payslips can be printed, exported to Excel or emailed to the respective employees

• All payroll-related reports can be generated with the click of a button.

• Above all, the Payroll feature is completely integrated with Accounts
The new Payroll Feature provides the following Statutory Reports:

• Employees Provident Fund Computation & Support:

       • PF deduction & contribution monthly statement
       • PF Combined Challan
       • Form 5
       • Form 10
       • Form 12A
       • Form 3A
       • Form 6A etc.

• ESI Computation & Support:

       • ESI deduction & contribution monthly statement
       • Payment Challan
       • Form 3
       • Form 5
       • Form 6 etc.

• Professional Tax computation for all the states with the following reports

       • PT Computation Report
       • PT Monthly Report...

h t t p : / / w w w . t a l l y s o l u t i o n s . c o m /

Income Tax : -Due Dates fall in November, 2014

Saturday, November 1, 2014 | comments

7 November 2014 -​Due date for deposit of Tax deducted/collected for the month of October, 2014 

15 November 2014 -​ 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 September 30, 2014

22 November 2014 -Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of October, 2014

30 November 2014 -Annual return of income and wealth for the assessment year 2014-15 in the case of an assessee if he/it is required to submit a report under section 92E pertaining to international or specified domestic transaction(s) ​

30 November 2014 -​Audit report under Section 44AB for the assessment year 2014-15 in the case of an assessee who is also required to submit a report pertaining to international or specified domestic transactions under Section 92E

30 November 2014 -​Statement of income distribution by venture capital company or venture capital fund in respect of income distributed during 2013-14

30 November 2014 -Extended due date for the assessment year 2014-15 for filing of audit report under Section 44AB by an assessee who is not required to submit a report pertaining to international or specified domestic transactions under section 92E vide ORDER [F.NO.133/24/2014-TPL], DATED 20-8-2014

30 November 2014 -

​ ​​Extended due date for the assessment year 2014-15 for filing of return of income by an assessee (not having any international or specified domestic transaction) (a) whose books of accounts are liable to be audited under section 44AB​; or (b) who is a working partner of a firm whose accounts are required to be audited under section 44AB vide ORDER [F.NO.153/53/2014-TPL], DATED 26-09-2014

TDS :- Importance of TDS Form 16 / 16A generated by TRACES

Wednesday, October 29, 2014 | comments

Friends,    There are too many deductors in India who deduct or collect  TDS or TCS and submit their statements timely.  But they do not know about that they should have to issue Form 16 or Form 16A with in prescribed time.  If they do not do accordingly, it attracts a penalty under the provisions of section 272A of the Act of Rs. 100/- per day for delay period.   However TDS (CPC) has also communicated to all deductors vide his communication  No./Date  3/21-June-2014 which is also given below :-

Dear Deductor,

As per the records of Centralized Processing Cell (TDS), the TDS Statements have been filed by you for different quarters for the Financial Year 2013-14. However, you have not yet downloaded TDS Certificates (Forms 16/ 16A) from our portal.
Please refer to the following provisions of the Income Tax Act, 1961 in this respect:

Downloading of TDS Certificates from TRACES made mandatory:
  • In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from "TDS Reconciliation Analysis and Correction Enabling System" or (hereinafter called TRACES Portal).
TDS Certificates downloaded only from TRACES hold valid:
  • In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.
Due Date for downloading and Penalty for non-compliance:
  • Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.
Assistance for downloading TDS Certificates from TRACES:
  • You can logon to our Portal and refer to our e-tutorials to download TDS Certificates.
For any further assistance, you can also write to or call our toll-free number 1800 103 0344.
CPC (TDS) is committed to provide best possible services to you.


Happy Diwali 2014

Thursday, October 23, 2014 | comments

Friends,   Happy Diwali to all of you and your's family.  

Everyone should respect their elders and love their youngers  which is great gift on Diwali for everyone.  It means we should respect everyone either he is elder or younger.

Many many happy returns of this day from

Income Tax :- Solution of Notice of Defective Return under section 139(9)

Tuesday, October 21, 2014 | comments

Friends, Income Tax Department has sent notices to their assessee's regarding defective returns under section 139(9) and also given an opportunity to rectify their return.   To rectify these defective returns a link has been provided in the name of "e-file in Response to Notice u/s 139(9)" under e-File link at 

Requirements for submit Response of Notice u/s 139(9)
  • User id and Password of income tax e-filing website.
  • Notice issued by Income Tax Department for Defective Return u/s 139(9)
  • ITR-V of Original Return for getting Acknowledgement Number.
  • Master file of Original Return or ITR/FORM can be downloaded from   "My Returns/ Form" under "My Account"
Important Setting required for generating XML 
  • The following screen shows the accurate result in Excel File for generating XML file. 

PPF : Maturity Date , Extension Period , Loan Amount , Withdrawal Amount , Taxability of Interest from Public Provident Fund

Saturday, October 18, 2014 | comments

Friends,  A person who has PPF account should read this article.  Even I had also opened PPF account 15 years ago, but was not aware about the date of Maturity of PPF account till date.  I mean to say I had opened my account on 19-10-1999 and was in view that my account will be closed after 15 years which will be 19-10.2014.  I was happy  to get maturity amount but bank has told me that maturity date of your PPF account is 31.03.2015.  It was shocked information  for me.  Therefore I request from all PPF account holders to read the below article to know regarding Maturity Date , Extension Period , Loan Amount , Withdrawal Amount or Taxability of Interest from Public Provident Fund account.

Some General Questions regarding PPF

  1. PPF account can not be extended after 15 years completion (maturity) .
  2. PPF account can be extended for 5  years after 15 year completion (maturity) Maximum period can be 15 years.
  3. PPF account can be extended after 15 years period (maturity) for block of 5 years at a time ,as many times as you want.

More than 80 % of person selected option (2) i.e PPF account can only be extended for 5 years after completion of 15 years period  and most of them are from accounting and finance field and having Graduate or Post Graduate degrees in Finance/Accounting.

 But is Option (2) is correct ? What you think ?

Before answering the above query first you should know 

what is maturity period for PPF Account . Means how to calculate 15 years period ? 

Relevant rule is given as under[rule 9(3)]
"....any time after the expiry of 15 years from the end of the year in which the initial  subscription was made by him "
Year here means :Financial year 

So ,as per PPF rules ,15 years is to be taken from the end of initial subscription year. Means by default each PPF account is to be matured on 31st March only .

Example : PPF  Account opened on 15-10-1999 ,calculate maturity date.

Ans : As per rule given above 15 years is to be taken from end of initial subscription year . In above case end of initial  financial year is 31.03.2000 and 15 years from 31.03.2000 ends on 31.03.2015 .So maturity date in above case is 31.03.2015.

What are the option available on maturity of PPF account?

On maturity of your PPF account you have three option
  1. Withdraw full amount and closed your account .
  2. Extend your account for a block of Five years without subscription.
  3. Extend PPF account for a block of Five years with subscription.
1.Withdraw full amount : First option need not more elaboration , you can withdraw full amount on maturity and amount received will be fully exempted from Income Tax .You have to apply on Form C to withdraw the amount .Interest up to the last day of the month preceding the month in which the application for withdrawals made will be given so make sure that you should apply for withdrawal in first week of the month to avoid possible loss of interest.

2.Extend PPF account for the Block of Five years without subscription : if you wish to continue but not want to  invest further? In other words, you may wish to earn the tax-free interest but may not wish to commit further funds. That, too, is possible.This Option is automatic,means if you does not opt for  "with subscription" option in one year from the end of the maturity period ,this option without subscription will be applied automatically .

The only thing that investors should be careful of is that once an account is continued without contribution for any year, the subscriber cannot change over to with-contributions extension. [Notification F.3(6)-PD/86 dt 20.8.86].

Withdrawal of balance Amount : In case the account is extended without contribution, any amount can be withdrawn without restrictions.(use form C) However, only one withdrawal is allowed per year. The balance will continue to earn interest till it is completely withdrawn.(Clarification 7 to Clause 9(3A) of the PPF Scheme, 1968).

So you can withdraw full amount in you account any time during extend time.

3. Extension of PPF account With Further Subscription:As per the PPF rulebook:
“Subject to the provisions of sub-paragraph (3) a subscriber may, on the expiry of 15 years from the end of the year in which the initial subscription was made but before then expiry of one year thereafter, may exercise an option with the Accounts Office in Form H, or as near thereto as possible, that he would continue to subscribe for a further block period of 5 years according to the limits of subscription specified in paragraph 3.”
This Option must be opted on FORM -H ,with in one year from the end of the maturity period ,otherwise option without subscription will be applied automatically .

Example : PPF account opened on 21.08.2000.What is the maturity date ?when we should apply on form "H" for extension of PPF account with subscription ?

Ans :As the account was opened on 21.08.2000 ,to calculate maturity date ,15 years to be counted from end of the initial subscription year.In above example Initial subscription year is 2000-2001 and ends on 31.03.2001.

15 years from 31.03.2001 ends on 31.03.2016,so maturity date is 31.03.2016.

Extension application on Form H should be made before the end of one year from maturity date .
so in above case

Maturity date is =31.03.2016

Form H application should be made with in  : 01.04.2016 to 31.03.2017.(Download PPF account scheme Form H)

so in above case ,If  person  do not apply on form H before 31.03.2017 then his account will be extended automatically as"Extension without subscription" and can not be changed back to "Extension with subscription".

Limit of withdrawal in extended period :Coming to liquidity, an investor, continuing his account with fresh subscriptions, can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more installment, but only one per year.(Notification F.7/2/97-NS IIdt. 9.2.1998). 

For example, say the term of your PPF account is ending on March 31, 2013. The balance at that time in the account is say Rs 20 lakh. Now, you may opt to continue the account for 5 more years (i.e. till March 31, 2018) and invest regularly as you have been.However, over the period of next five years till March 2018, you may withdraw only Rs 12 lakh which is 60% of the balance standing to your credit on March 31, 2013.Further you can withdraw only once in each year .

Correct answer :This time answer given by majority of person(more than 80 %) is incorrect and this result has come when correct answer was also available in option and most of persons who has attempted the  question is from Finance / accounting field. We have also given a hint by commenting that why persons are not selecting the Answer (1) and (3) ,even then participant stick with option two. Though CA Ritika pundir and Nilam Rathod selected the correct option . Correct answer is (3) .

As per Sec 9(3) of the PPF Scheme, at its maturity, the account can be continued for a block of 5 years. This facility is available for any number of blocks on expiry of each of the extended periods. The continuation can be with or without We can extend PPF account after completion of 15 years by block of 5 years ,as many time as we wish . PPF is popularly known as 15 year scheme .However, after the initial period of 15 years is over, one can keep on extending the deposit for a period of 5 years at a time.

One need not start a fresh PPF account and continue it for all of 15 years.Just extend the old one for five years at a time, indefinitely.

Income Tax : - Special effort by Income Tax Department

Friday, October 17, 2014 | comments

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes


15th October, 2014

In view of the large devastation caused by the recent floods in Jammu &  Kashmir, the Income tax Department is taking necessary steps to process  expeditiously the refund claims of the taxpayers residing in the state of Jammu  & Kashmir who have submitted their returns through electronic mode. Instances  have come to notice where the refund cheques could not be delivered at the  address indicated by the taxpayers in their returns due to dislocation caused by  floods.

Non-Corporate taxpayers of Jammu and Kashmir who desire to provide a new  address for delivery of their refund cheques, may log in to the e-filing site, and update their address through the path  Profile Setting -> My Profile-> Address. Alternatively, the taxpayers can  contact the helpdesk at Centralised Processing Centre (CPC), Bangalore at  1800 425 2229 and provide the updated address.

(Rekha Shukla)
Commissioner of Income Tax 
(M &T P)
Official Spokesperson, CBDT
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