Saturday, March 31, 2012

Processing of TDS Return

                  As per Income Tax Act Section 200A, TDS return processing has been started.  After processing TDS return, intimationis to be sent to the concerned decutor/collector.   Three major or good rectification has been done w.e.f. 01-07-2012 regarding intimation of TDS returns which are given as under :-
  1. Under section 154, rectification can be done in TDS intimation. 
  2. Against the intimation under section 245A, CIT (Appelas) can be done. 
  3. After intimation of TDS return, under section 156 will be treated  demand notice. 

Friday, March 30, 2012

New Income Tax Return Forms for Assessment Year 2012-13

Income Tax Department has issued ITR forms for the Financial Year 2011-12 or Assessment Year 2012-13 before ending 31.03.2012. 
  1. Notification in English-(Click Here) for  Indian Individual Income tax Return
  2. ITR-1 SAHAJ-  (Click Here) for  For Individuals and  HUFs not having Income from Business or Profession
  3. ITR-2- (Click Here) for  For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship]
  4. ITR-3- (Click HereFor Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship]
  5. SUGAM (ITR-4S)- (Click Here)  for  Sugam - Presumptive Business Income tax Return
  6. ITR-4- (Click Here) for  For individuals and HUFs having income from  proprietory business or profession
Manually Income tax return can be submitted with the help of above forms.

Old Forms for Previous Years (click here)

  • AIR Codes in Details                                                             Click Here
  • Know Your Pan                                                                    Click Here
  • MICR Code of Your Bank                                                    Click Here
  • Advance Tax Knowledge                                                      Click Here
  • e-Payments                                                                           Click Here
  • Know Your Income Tax Ward /Circle/ Jurisdiction                Click Here
  • How to submit Revised Income Tax Return                           Click Here 
  • Login for e-filling                                                                   Click Here
  • Due Dates for Submission of Income Tax Returns etc.           Click Here
  • Income Tax Slabs/Index (F.Y. 2000-01 to up to Date)          Click Here
  • Income Tax Calculator  (F.Y. 2005-06 to up to Date)           Click Here 
  • Other Calculators                                                                  Click Here  
  • Exempted for Filling of Income Tax Return                             Click Here

Income Tax Offices will remain open on 31.03.2012

In the interest of assessee, CBDT has ordered under section 119(1) of Income Tax Act, 1961 to all Income Tax Offices to remain open on 31.03.2012 and all the receipts counter will work as normal day on 31.03.2012.   Detailed notification Dated 30-03-2012 is given as under :-

F.No.225/138/20111IT A.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, the 30 th March 2012

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

The Financial Year 2011-12 closes on 31-3-2012 falling on Saturday. All the Income Tax Offices through out India shall remain open on this day and the receipts counters shall also work during normal office hours. 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 so" and 31 st March 2012 to facilitate the taxpayers in filing their returns of income conveniently. These instructions may be given wide publicity.

Under Secretary to the Government of India.
Copy to:-
  1. The Chairman (CBDT), All Members, Central Board of Direct Taxes for information.
  2. All Cadre Controlling CCslT for necessary action in respect of their region.
  3. The Director General of Income Tax (Admn.) Mayur Bhawan, New Delhi.
  4. DGIT (Systems) for putting it on Departmental Website.
  5. Shri Shishir Jha, CIT (MC) of CBDT. 

Under Secretary to the Government of India.

Gift from Relative "Exempted from Income Tax"

Friends,  Gifts received by an individual/HUF are not taxable which have been received from the following :-

 (i)    Money or Property received by from a relative, or Relative means:-
  • (a) spouse, (पति और पत्नी)
  • (b) brother or sister, (भाई और बहन) 
  • (c) brother or sister of the spouse, (साला और साली)
  • (d) brother or sister of either of the parents, (चाचा, चाची, मामा और मोसी)
  • (e) any lineal ascendant or descendent, (लड़का,लड़की,पोता,पोती, पड़ पोता , पड़ पोती)
  • (f) any lineal ascendant or descendent of the spouse,
  • (g) spouse of the person referred in clause (a) to (f).
 (ii)   Money or Property received by an individual on occasion of his marriage, or 
 (iii)   Money or Property by an individual/H.U.F., under a will or by way of inheritance, or 
 (iv)   Money or Property received in contemplation of death of the payers, or 
 (v)   Money or Property received from any local authority, or 
 (vi)   Money or Property received from any fund, foundation, university, educational institution, hospital, medical institution, trust, institution referreed u/s 10(23), or 
 (7)   Money or Perperty received from any trust or institution registered u/s 12AA. [Sec, 2(24) (xv) read with Sec. 56(2)(vii)].

*** "Property" means immovable property or movable property with some condition. 

Thursday, March 29, 2012

e-TDS:-Mandatory Pan 70%/85%/90%/95%/100% in 24Q or 26Q

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 12th February 2008


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.

To know 100% PAN Mandatory in TDS return Read complete 
Circular No 41 Dated 31.05.10 (Click Here )

Customs-Circular No 09/2012 dated 23rd March 2012

 Circular No.09 / 2012 – Customs

F. No. 528/11/2012-STO (TU)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

229A, North Block, New Delhi,
23rd March, 2012.


All Chief Commissioners / Commissioner of Customs / Customs (Prev.)
All Chief Commissioners / Commissioner of Customs & Central Excise
All Commissioners of Customs (Appeals)
All Commissioners of Customs & Central Excise (Appeals)
All Directors General under CBEC.

Subject:  Applicability of exemption under Sr. No. 4 of the Notification 4 / 2006 - CE dated 1/3/2006 on import of Ore Concentrates - regarding.

Sir / Madam,

Doubts have been raised whether on imports of Ore Concentrate classifiable under Chapter 26 of the First Schedule to the Customs Tariff Act, 1975, the benefit that is admissible to “Ore” under Serial Number 4 of the Notification No. 4/2006 – CE dated 1.3.2006 can be granted to the “Concentrate” of that Ore. The issue was taken up for discussion during the Conference of Chief Commissioners of Customs on Tariff and allied matters held in May 2011.

2.         The matter related to: (a) whether the term ‘Ore’ includes Concentrate, and (b) Whether insertion of Chapter Note 4 in the Chapter 26 will have any impact on the admissibility of notification benefit to Concentrates, was examined. The Conference noted the HS definitions of Ore and Concentrate are as follows:

“The term ‘ore’ applies to metalliferous minerals associated with the substances in which they occur and with which they are extracted from the mine; it also applies to native metals in their gangue (e.g. metalliferous sands”).

“The term ‘concentrates’ applies to ores which have had part or all of the foreign matter removed by special treatments, either because such foreign matter might hamper subsequent metallurgical operations or with a view to economical transport”.

It was also seen that the recent changes in the Central Excise Tariff treating the concentration of ore as amounting to manufacture would not in any way change the definition of Ore or Concentrate for the purpose of classification. This has been reiterated in a number of judgments and also vide Board Circular No.696/12/2003 – CX dated 26.2.2003.

3.         In view of Chapter Note 4 to Chapter 26 of CETA, 1985 inserted vide Finance Act 2011, Ores and Concentrates are two distinct products. Thus, Concentrates suffer Central Excise duty being a manufactured product. The implication for imported Concentrates is that the benefit of exemption of additional duty of Customs leviable under Section 3 of Customs Tariff Act, 1975 in terms of a notification that applies only to Ores is no longer available to Concentrates, even if Concentrates and Ores fall under the same tariff heading.

4.         Thus, it is concluded in the Conference that the benefit of exemption notification under Sr. No. 4 of the Notification 4/2006-CE dated 1.3.2006 will be available only to imported Ores and not to imported Concentrates.

5.         Suitable instructions may be given to the field formation and all pending assessments, if any, may be finalized accordingly. Difficulty faced, if any, may be brought to notice of the Board.
           Yours faithfully,

(Subodh Singh),
OSD (Customs), Tariff Unit,

Wednesday, March 28, 2012

Rectification of Depreciation

Rectification of wrongly claimed depreciation, through filing of a letter to AO, is allowed when no fresh claim is made

The assessee claimed the depreciation on a newly installed windmill on the basis of WDV method at the rate of 15%. Subsequently, when assessee realised the mistake that correct rate of depreciation would be 80%, it filed a letter before assessing officer to rectify the claim and to provide deprecation at the rate of 80%. The assessing officer rejected the claim considering the principle laid down by the Supreme Court in Goetze (India) Ltd. vs. CIT [2006] 157 Taxman 1 that a fresh claim cannot be made by the assessee other than by filing a revised return.

The Tribunal held that the assessee was not making a fresh claim before the assessing authority. Infact, the assessee had made a claim for depreciation but the rate chosen was not a correct one. Thus, the judgment of the Supreme Court in the Goetze (India) Ltd. (Supra) would not apply to the present case. Further, as per Explanation 5 to Section 32(1), the depreciation would be allowed whether or not the assessee has claimed the depreciation in computing the total income. Therefore, the assessing officer was duty bound to allow the depreciation computed at the correct rate provided under the Act. - ITO v. SRI BALAJI SAGO AND STARCH PRODUCTS [2012] 19 313 (Chennai - Trib.)

Tuesday, March 27, 2012

How to convert .rpt files to .xls

Friends,   It is great problem when we need .rpt files in .xls.  Sometime back I had received .rpt files from Punjab National Bank as Bank Account Statements for a particular account.  I had tried to convert in excel, but after devoting 4 hours, I got fail in conversion. 

             In last I tried following steps and got success. 

  1. Open .rpt file in Notepad.
  2. File Save as in .txt file (as shown in above picture)
  3. Open with  .txt file in Microsoft Excel.
  4. Option "Text to Coloumns" > Fixed >Finish. 
  5. then Save File in excel. 

Monday, March 26, 2012

Consequences if Deductor do not Deduct or Pay Income Tax

 Major Changes in Section 201 w.e.f. 01.07.2012
    Person who fails to deduct or pay on the payment to a resident shall now not be deemed to be an assessee in default in respect of such tax if such resident 

(i) has furnished his return of income under section 139; 
(ii) has taken into account such sum for computing income in such return of income; and
(iii) has paid the tax due
(iv) furnishes a Certificate from CA Interest shall be payable from the date on which such tax was deductible to the date of furnishing of return of income by such resident.
Period of Limitation extended to 6 years from 4 years. 

Words as per Chapter-III of Income Tax Act.
In section 201 of the Income-tax Act,—

   (A) with effect from the 1st day of July, 2012,—
            (i) in sub-section (1),—
                      (a) before the proviso, the following proviso shall be inserted, namely:—

                      “Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident—-
                 (i) has furnished his return of income under section 139;
                 (ii) has taken into account such sum for computing income in such return of income; and
                (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:”;

            (b) in the proviso, for the words “Provided that”, the words “Provided further that” shall be  substituted;

       (ii) after sub-section (1A), the following proviso shall be inserted, namely:—

        “Provided that in case any person, including the principal officer of a company fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum  paid to a resident or on the sum credited to the account of a resident but is not deemed to be an assessee in default under the first proviso of sub-section (1), the interest under clause (i) shall be payable from the date on which such tax was deductible to the date of furnishing of return of income by such resident.”;

  (B) in sub-section (3), in clause (ii), for the words “four years”, the words “six years” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2010;

  (C) after sub-section (4), the following Explanation shall be inserted with effect from the 1st day of
July, 2012, namely:—

           “Explanation.—For the purposes of this section, the expression “accountant” shall have the meaning assigned to it in the Explanation to sub-section (2) of section 288.”.

3.50% Dividend Declared by UTI Mutual Fund

MUMBAI: UTI Mutual Fund on Tuesday declared a gross dividend of 3.5 per cent for its Charitable and Religious Trusts and Registered Societies Scheme.

The dividend after tax deductions will be 2.64 per cent and the record date for the payout is March 22, the fund house said in a statement here.

As on March 16, the net asset value per unit of scheme is Rs 129.03 under the dividend options.

The objective of the scheme, an open-ended income oriented plan, is primarily to provide regular income to its investors by investing not more than 30 per cent of the funds in equities and balance in debt and money market instruments, the statement said.

Director Remuneration under section 194J

Friends,  In  budget 2012, Director Remuneration will be covered under section 194J and TDS will be deducted @ 10%  under Fee for professional or technical services under section 194J.

This amendment will be applicable w.e.f. 01-07-2012
Section   :- 194J 
Subject   :- Fees for Professional or technical services
w.e.f.      :- 01-07-2012
Changes :- Payment to a director of a company any sum by way of any remuneration, fees or commission Which is not a salary shall also attract TDS of 10%

For more Clarity read exact words  as per  Chapter III of Income Tax Act  : -

       In section 194J of the Income-tax Act, in sub-section (1), after clause (b), the following clause shall be inserted with effect from the 1st day of July, 2012, namely:—

“(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company; or”.

Due Date Calender

              Due date calender is helpful for everyone.  It shows due dates for deposit of income tax, deposit of advance tax, submission of Income Tax Return,  Deposit of E.S.I. and submission date of E.S.I. Return, Deposit dates of TDS and submission date of TDS returns etc. 

                        Due Date Calender
Common Dates
Service Tax Payment
Every Month- for companies
Excise Duty Payment
Every Month
TDS/TCS Deposit
Every Month for Previous Month ended.
Excise Returns
Every Month
E.S.I. Return
Every Month
Annual P.F. Return
In April
T.D.S. Return
Quarterly Returns
Advance Payment of IT/FBT
P.F. Deposit
Every Month
E.S.I. Deposit
Half Yearly
P.F. Return
Service Tax Return
Half Yearly
T.C.S. Return

Specific Dates
31st Mar
Service Tax payment for both Monthly/Quarterly Cases
30th Apr
T.D.S. Return for Q4
15th Jun
Advance Income Tax/FBT for Companies
31st Jul
IT/FBT Return Filing for non audit cases
30th Sep
Income Tax/Wealth Tax/FBT Returns of Companies & Tax Audit cases
25th Oct
Service Tax Return- Half Yearly
31st Oct
Balance Sheet & PL Filing with ROC for companies with financial year ending on 31st  March.
30th Nov
Annual Return Filing for Companies with financial Year ending on 31st March

80G- No Deduction in case "Cash Payment more than 10,000/-"

As per new sub-clause 5(D) of 80G, there will be no deduction in case donation is made in cash  more than 10,000.  Earlier there was no such limitation of Rs.10,000 or Cash etc.

These amendments will take effect from 1st April, 2013 and will accordingly apply in relation to assessment year 2013-14 and subsequent assessment years. 

Amendment of section 80G vide finance Bill 2012 dated 16.03.2012

27. In section 80G of the Income-tax Act, after sub-section (5C), the following sub-section shall be inserted with effect from the 1st day of April, 2013, namely:—

“(5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding ten

Sunday, March 25, 2012

Free Income Tax Calculator w.e.f. 01.04.2005 to as on Date (Excel Based)

Excel Based Income Tax Calculator 
  • Excel based Income Tax Calculation for the Financial Year 2005-06,2006-07, 2007-08, 2008-09, 2009-10, 2010-11,2011-12 and 2012-13 are available in below calculator
  • No need to pick up any handy calculator.
  • Only white cell is for data entry.
  • Income Tax will be calculated in a single Click.
  • When anyone is going to taken rebate u/s 89(1) through bifurcation of income year wise , it is helpful for those.
  • to know regarding rebate of tax u/s 89 (1) (click here)
  • Year wise Basic Exemption are also given in Calculator shown in Yellow Colour
  • Now comparative figures after budget is also available in it.
Calculate and know your  Amount of ADVANCE TAX (click here)

Figures for the Assessment Year 2013-14 are on the basis of budget 2012 announced on 16th March, 2012
If you are not watching Calculator (Click here)

Saturday, March 24, 2012

All About Regarding Passport

                   Ministry of External Affairs has started an excellence service of Passport.  It contains everything relating to Passport etc. like Guidelines for how to apply a Fresh Passport, Re-issue of Passport or Apply for Police Clearance Certificate.  Applicant can download e-Form (editable form in pdf form), Print Form, Check Fee/Charges amount (through below online calculator), required documents, annexures/Affidavits and also submit his/her Feedback/Grievance.  This service is called Passport Seva Project.

                     There may be lot of changes that instantly you have still not requirement of Passport but to aware about features and function of the website, everyone should check all links given in below calculator/website.

                        Toll Free number (18002581800) is also provided to resolve the applicant's problems.

Friday, March 23, 2012

Budget 2012-13- Booklet cum Ready Reckoner

Budget Booklet cum Ready Reckoner  in PDF format is available in 62 pages,  all details relating to Tax Slab, TDS, Excise Rate, Due Dates Calenders, 10 Year Tax Slab, NSC Interest calculation chart, EMI Rates, Bank Interest Rates, TDS changes in sections, Index Rates, Service Tax Rates, PIN Codes, BSR codes, How to know PAN, form 16A from NSDL, useful links,  Important codes for e-filing etc. are available in this booklet or Ready Recknoer.   

Budget Booklet Ready Reckoner 2012 13
(For better view , user can use full screen view given in bottom of above booklet.)


Friends,  In budget 2012, the following changes have been done in TDS/TCS sections.

Interest on Debentures
Limit increased from Rs. 2500/- to Rs. 5000/-
Payments to non-resident sportsmen, sports associations, entertainer
Rate increased to 20% from 10%
Fees for Professional or Technical Services
Directors Remuneration Covered
Compensation on acquisition of immovable property
Limit increased to 2 Lacs
Transfer of immovable property other than agriculture land
Rate= 1%
Less than 50 lacs/25 lacs for specified/non specified area

Thursday, March 22, 2012

Notification No. 5(4)-B(PD)/2011, Dated 13.03.2012 regarding interest on Non-Government Provident,Superannuation and Gratuity funds

NOTIFICATION NO.5(4)-B(PD)/2011, DATED 13-3-2012
It is hereby notified that the deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No. F. 16(1)-PD/75, dated 30th June, 1975, shall with effect from 1st December, 2011 and until further orders, bear interest at 8.6% (eight point six per cent) per annum.

Tuesday, March 20, 2012

Central Excise-Non Tariff Notification No. 20/2012 Dated 19-03-2012

 New Delhi, the 19th March, 2012 

Notification No. 20/2012-Central Excise

        G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 02/2011-Central Excise, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 117 (E), dated the 1st March, 2011, namely:-

In the said notification, in the TABLE,-

(i)     for serial number 48 and the entries relating thereto, the following shall be substituted, namely:-

Articles of jewellery”;

(ii)     for serial number 49 and the entries relating thereto, the following shall be substituted, namely:-

Articles of goldsmiths’ or silversmiths’ wares of precious metal or of metal clad with precious metal, bearing a brand name,except gold coins of purity 99.5% and above and silver coins of purity 99.9% and above.
Explanation.- For the purposes of this exemption,-
(1) “brand name” means a brand name or trade name, whether registered or not, that is to say, a name or a mark, such as a symbol, monogram, label, signature or invented words or any writing which is used in relation to a product, for the purpose of indicating, or so to indicate, a connection in the course of trade between the product and some person using such name or mark with or without any indication of the identity of that person;
(2) an identity put by a jeweller or the job worker, commonly known as ‘house-mark’ shall not be considered as a brand name.”

[F No.-334/1/2012 -TRU]

[Raj Kumar Digvijay]Under Secretary to the Government of India

Note. -   The principal notification No. 2/2011-Central Excise, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 117 (E), dated the 1st March, 2011, was last amended vide notification No. 19/2012-Central Excise, dated the 17th March 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.170 (E), dated the 17th March 2012.

Intense Debate Comments