Friday, January 31, 2014

TDS :- Mandatory Form 27A w.e.f. 01-02-2014

Friends,   Now self generated form 27A will not be applicable w.e.f.  01-02-2014.  Only the form generated from FVU will be allowed.   There is no need to submit form 27A when TDS returns are being submit through NSDL online upload system. 

                Value of system generated form 27A is that it is accurate and prepared with  all aspects. 

Income Tax : - Press Release for allotment of PAN

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

Dated 24th January, 2013
Press Release

       The procedure for PAN allotment process will undergo a change w.e.f. 03.02.2014. From this date onwards, every PAN applicant has to submit self attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

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

Thursday, January 30, 2014

TDS :-CPC (TDS) Communication for payment of outstanding Demand related with Late Filing

Dear Deductors, 
As per the records of Centralized Processing Cell (TDS), the TDS Statement(s) for some of the quarters have not been submitted within the prescribed due date. 
Intimation u/s 200A of the Income Tax Act, 1961 intimating an outstanding demand for the relevant quarters, including demand under section 234E towards Fee for delayed filing of TDS Statement(s), have already been sent by CPC (TDS) on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement. 
Your attention is hereby drawn towards the provisions of section 234E of the Act, which reads as follows: 
  • Levy for Late filing of TDS Statement (Section 234E of Income Tax Act)
1)     Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues. 
2)     The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be. 
3)     The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C. 
4)     The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012 
You are advised to pay the outstanding demand at an early date to avoid Penal Interest u/s 220(2) of the Act apart from intimation of other recovery proceedings as per Income Tax Act, 1961. If the demand has already been paid, you are requested to file a Correction Statement by tagging the challan and the Justification report can be verified for closure of demand, if the revision has already been submitted and processed. 
  • How to pay the demand:
The following steps shall help you analyze and pay the demand: 
·         Download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for assistance on downloading the Justification Report. 
·         Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available 
·         Download the Conso File from our portal. Please use the e-tutorial for necessary help. 
·    In case of payment towards late filing fee, please Tag the challan towards the payment, in the “Fee” column” (Column Number 305 for 24Q, 404 for 26Q, 706 for 26Q) using RPU Ver. 3.8, mentioning appropriate amount in such column and validate to generate the FVU. 
·         Submit the Correction Statement at TIN Facilitation Centre. 
·         The demand can also be paid by using the Online Correction facility. Please refer to the e-tutorial for assistance. 
For any further assistance, you can also write to or call our toll-free number 1800 103 0344. 
CPC (TDS) is committed to provide the best possible services to you. 

·         Please maintain updated email address and Contact Number on TRACES to receive regular periodic updates and guidelines from TRACES. 
·         Please refer to our FAQs and e-tutorials for detailed screen-driven assistance, before seeking further help. 

Thursday, January 23, 2014

RBI : - Currency Change issued prior to 2005


           Reserve Bank of India has issued  Press Release :- 2013-2014/172 dated 22-01-2014 regarding change of Indian Currency issued prior to 2005 under time limitation given below :-

January 22, 2014
Banknotes issued prior to 2005 to be withdrawn: RBI Advisory

                The Reserve Bank of India has today advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication. The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side. (Please see illustration below)

                  The Reserve Bank has also clarified that the notes issued before 2005 will continue to be legal tender. This would mean that banks are required to exchange the notes for their customers as well as for non-customers. From July 01, 2014, however, to exchange more than 10 pieces of `500 and `1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes. 

               The Reserve Bank has appealed to the public not to panic. They are requested to actively co-operate in the withdrawal process.

 Ajit Prasad
Press Release : 2013-2014/1472                                                                      Assistant General Manager

Tuesday, January 21, 2014

e-TDS : - No TDS on Service Tax in 194J


               Income Tax Department has issued a Circular No. 1/2014 [F.NO.275/59/2012-IT(B)], dated 13.01.2014 regarding clarification on tds on 194J or 194-I without including the service tax component if service tax is to be paid separately as per the terms of agreement between the payer and the payee.. 


CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014 

The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be  deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as 'the Act'), on the amount of rent paid/payable without including the service tax component.  Representations/letters has been received seeking clarification whether such principle can be extended  to other provisions of the Act also. 

2. Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajasthan High Court dated  1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal  No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Act. 

3. The matter has been examined afresh. In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. 

4. This circular may be brought to the notice of all officer for compliance. 

Monday, January 20, 2014

Income Tax :- Rejection of Deduction u/s 80TTA by Income Tax Department.

Friends,    Today I was shocked to view that  Income Tax Department has rejected deduction of  80TTA in an assessment order of assessee for the assessment year 2013-14 vide which he was claimed deduction of  80TTA (Interest on Saving Bank account) with Nil Tax return.  But Income Tax Department has raised tax demand in his assessment. 

                 Initially,  I was wandering to know the reason of rejection of  income tax deduction of 80TTA then thought is there any limit in total income  for deduction of 80TTA or not and found that there is no limit in total income for deduction.   Deduction of 80TTA (interest on saving bank accounts) is allowable maximum to Rs. 10,000.00.  

                  Finally, I have gone through the complete data of income tax return and found that assessee has not filled amount of Interest on Saving Bank in the Income Head "Income from Other Sources".  All amount including salary+saving bank interest was filled  in the Income Head "Income from Salary Head".   It means Income from other sources was Nil.  This was main reason for rejection of deduction of  80TTA.  If assessee claims deduction of 80TTA then  Income from other sources should not be less than the amount of deduction of 80TTA. 

Sunday, January 19, 2014

Income Tax :- Income Tax Calculator Formula for Excel

         Microsoft Excel is common utility for users.  Lot of persons are using this utility for calculating different calculations.  Some times users create a utility but feel difficulty to create formula for calculating Income Tax.   In the interest of persons, we are providing excel formula for calculating Indian Income Tax in a single row  for the Financial Year 2013-14 or Assessment Year 2014-15.   Just copy and paste in your excel and enjoy. 

Basic Knowledge for use of this formula :-
  1. Taxable amount should be in Excel Cell K3 as shown in below picture. 
  2. Cell D3 stands for Others, Women, Senior Citizen and Super Senior Citizen. 
  3. Copy below formula and paste in Excel Cell L3.
  4. Care is required for use of copy and paste function. Nothing should be left for copy like brackets etc.

Formula for calculating Income Tax for Financial Year 2013-14 or Assessment Year 2014-15

=+ROUND(IF(D3="Others",IF(AND($K3>=200000,($K3<500000>=500000,$K3<1000000>=1000000,(130000+($K3-1000000)*0.3)),IF(D3="Women",IF(AND($K3>=200000,($K3<500000>=500000,$K3<1000000>=1000000,(130000+($K3-1000000)*0.3)),IF(D3="Senior Citizen",IF(AND($K3>=250000,($K3<500000>=500000,$K3<1000000>=1000000,(125000+($K3-1000000)*0.3)),IF(D3="Super Senior Citizen",IF(AND($K3>=500000,$K3<1000000>=1000000,(100000+($K3-1000000)*0.3)))))),0)-IF(AND(K3<=500000,K3>=200000,OR(D3="Women",D3="Others")),MIN((K3-200000)*0.1,2000),0)-IF(AND(K3<=500000,K3>=250000,D3="Senior Citizen"),MIN((K3-250000)*0.1,2000),0)

View and Copy above formula through Excel (Download Excel File with Formula)

To download the different calculators click here 

Saturday, January 18, 2014

e-TDS :- TDS challan deposited in one Section Code can be adjusted in another Section Code.

Friends,  In the new RPU 3.8 or FVU version 4.1 & FVU version 2.137 it has been clarified that in case deductor has deposited any TDS amount in a section code, the same can be adjusted in another section code. 

         For example,  a TDS challan deposited under Section Code 192 (for salary) can be used for any other Section  Codes like 193, 194 etc in the challan detail row.

Tuesday, January 14, 2014

Service Tax :- Mandatory Payment of Duty / Tax through internet banking

           Prior to 1.1.14, a manufacturer/service tax payer was required to pay duty of Central Excise/Service tax through internet banking (e-payment) if the total duty paid by the assessee exceeded rupees ten lakhs in the previous financial year as per Rule 8 of the Central Excise Rules, 2002 and Rule 6 of the Service Tax Rules, 1994 respectively. 

          However ,vide Notification No. 15/2013- C.E ( N.T) and Notification No. 16/2013 -(ST) dated 22-11-13 , a manufacturer or a Service tax payer who has paid a duty or tax of more than rupees one lakh in the previous financial year shall be required to pay duty or tax through internet-banking, with effect from 1st of January , 2014.

Notification No. 15/2013- C.E ( N.T)


Notification No. 15/2013 – Central Excise (N.T.)
New Delhi, the 22nd November, 2013
01, Agrahayan 1935 Saka

G.S.R. (E). - In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules to further amend the Central Excise Rules, 2002, namely:-

1. (1)   These rules may be called the Central Excise (Second Amendment) Rules, 2013.
    (2)   They shall come into force with effect from the 1st day of January, 2014.

2.In the Central Excise Rules, 2002, in rule 8, in sub-rule (1), in the third proviso, for the words  “rupees ten lakh”,  the words “rupees one lakh” shall be substituted.

F. No. 201/02/2013-CX.6

(Pankaj  Jain)
Under Secretary to the Government of India 

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), dated the 1st March, 2002 vide notification No. 4/2002 – Central Excise ( N.T.), dated the 1st March, 2002, [G.S.R. 143 (E), dated the 1st March, 2002] and was last amended, vide, notification No. 2/2013 - Central Excise (N.T.), dated the 1st March, 2013, [G.S.R 149(E) dated the 1st March, 2013].


EPF : - Employee's Provident Fund Interest Rate raised to 8.75%


                The Employees Provident Fund Organisation has decided to increase the interest rate on deposit in PPF to 8.75 % for the year 2013-14.  Presently this is 8.50%.  The new decision impact is 0.25% over the present interest rate 8.50%.  The announcement made by labour minister Oscar Fernandes after a meeting on Monday will benefit close to eight crore subscribers. 

   If you are one of the subscribers of the EPFO? Then check your accounts online a real time basis by clicking here 


Friday, January 10, 2014

e-TDS : - Login Page for online submission of TDS Return

Friends,  NSDL has provided link of Login Page at for online uploading TDS statements.  This facility is available only for those deductors who has registered their digital signature (DSC) with NSDL.  Currently there is no charges as uploading fee for uploading TDS/TCS statements.  It means that there are chances in future that NSDL may charges again  fee for uploading TDS statements through this link.  Still it is totally free of cost. 

Introduction :- Press Here
Basic Requirements to avail benefit of this Link.
         -Digital signature is required to upload TDS statement/FVU file. 
         -Registration of Digital signature with NSDL is next step. 
         -Deductor is free to upload their return after success registration of DSC.

Benefit of Online Upload TDS/TCS Statements.
        - No need to go anywhere like nodal center etc.  Deductor can upload return from his office. 
        - No uploading fee at present. 
        - No need to prepare form 27A etc.  DSC works in place of 27A form. 
        - Valid Pan can be checked  just after upload TDS return

Registration Process  :- Click here to know more 

Friday, January 3, 2014

e-TDS : - New RPU 3.8 applicable w.e.f 04.01.2014 with Form 27A utiltiy

                NSDL has provided new TDS RPU  3.8 which is applicable w.e.f. 04.01.2014 as mandatory.  Major amendments have been done in this tds RPU 3.8 like discontinuation in deletion of deductee record , Automatic Generation of Form 27A and changes in challan detail etc.  Mainly Auto Form 27A generation is main feature in the interest of  NSDL RPU user's.  Now no need to go anywhere to generate form 27A.  As we create file the same is available in same folder where fvu file is generated. 

Key features of RPU 3.8

--- 1. Deletion of deductee record: Feature to delete the deductee record has been discontinued and as a result delete option available under “Updation mode for Deductee” has been removed. In case the user wishes to nullify a deductee record/ transaction, he is required to update the amount and related fields to “0” (zero) and add new record with updated values.

--- 2.Date of deduction: Date of deduction in deductee record should not be that of previous quarter. Example if the statement pertains to Q3 of FY 2013-14, then the date of deduction should not be lower than 01/10/2013.

--- 3.Generation of Form 27A: New feature has been enabled wherein Form 27A is generated on validation of statement by TDS/TCS FVU.

--- 4.Heading of column no. 20 under Challan details has been changed as “Interest to be allocated/apportioned”.

--- 5.Incorporation of latest FVU Version 4.1 and 2.137.

--- 6. Applicability of FVU version: FVU version 4.0 and 4.1 are applicable upto January 03, 2014 and from January 04, 2014 FVU version 4.1 would be mandatory

Click here to Download TDS RPU 3.8

Wednesday, January 1, 2014

Happy New Year 2014

Wish you and your family very very Happy New Year 2014

From :-
    Rajiv  Jain
    web : -
    Free support of Excel,Tally,e-TDS,Income Tax etc.
Rajiv Kumar Jain,Ph. 09896124627

Happy New Year 2014


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