Wednesday, August 31, 2011

DEDUCTION UNDER SECTION 80C,80CCD,80CCC,80CCF ELIGIBLE SCHEME LIFE INSURANCE ,PPF ,PF,NSC DETAILS


In computing the taxable income of the individual, the following deductions under section-80C, 80CCC, 80CCD , 80CCE of the Act are to be allowed from his gross total income:
A. As per section 80C, an employee will be entitled to deductions for the whole of amounts paid or deposited in the current financial year in the following schemes, subject to a limit of Rs.1,00,000/-:

  1. Payment of insurance premium to effect or to keep in force an insurance on the life of the individual, the spouse or any child of the individual.
    • It may be clarified that the amount of premium or other payment made on an insurance policy [other than a contract for deferred annuity mentioned in sub-para (2)] shall be eligible for deduction only to the extent of 20 percent of the actual capital sum assured. 
      • In calculating any such actual capital sum, the following shall not be taken into account: the value of any premiums agreed to be returned, or
      •  any benefit by way of bonus or otherwise over and above the sum actually assured which may be received under the policy.
  2. Any payment made to effect or to keep in force a contract for a deferred annuity, not being an annuity plan as is referred to in item (7) herein below on the life of the individual, the spouse or any child of the individual, provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity;
  3. Any sum deducted from the salary payable by, or, on behalf of the Government to any individual, being a sum deducted in accordance with the conditions of his service for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum deducted does not exceed 1/5th of the salary;
  4. Any contribution made :
    • (a) by an individual to any Provident Fund to which the Provident Fund Act, 1925 applies;
    • (b) to any provident fund set up by the Central Government, and notified by it in this behalf in the Official Gazette, where such contribution is to an account standing in the name of an individual, or spouse or children ;[The Central Government has since notified Public Provident Fund vide Notification S.O. No. 1559(E) dated 3.11.05.
    • (c) by an employee to a Recognized Provident Fund;
    • (d) by an employee to an approved superannuation fund;It may be noted that "contribution" to any Fund shall not include any sums in repayment of loan;
  5. (5) Any subscription :-(a) to any such security of the Central Government or any such deposit scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf;(b) to any such saving certificates as defined under section 2(c) of the Government Saving Certificate Act, 1959 as the Government may, by notification in the Official Gazette, specify in this behalf.[The Central Government has since notified National Saving Certificate (VIIIth Issue) vide Notification S.O. No. 1560(E) dated 3.11.05.]
  6. Any sum paid as contribution in the case of an individual, for himself, spouse or any child,a. for participation in the Unit Linked Insurance Plan, 1971 of the Unit Trust of India;b. for participation in any unit-linked insurance plan of the LIC Mutual Fund referred to in clause (23D) of section 10 and as notified by the Central Government.[The Central Government has since notified Unit Linked Insurance Plan (formerly known as Dhanraksha, 1989) of LIC Mutual Fund vide Notification S.O. No. 1561(E) dated 3.11.05.]
  7. Any subscription made to effect or keep in force a contract for such annuity plan of the Life Insurance Corporation or any other insurer as the Central Government may, by notification in the Official Gazette, specify;[The Central Government has since notified New Jeevan Dhara, New Jeevan Dhara-I, New Jeevan Akshay, New Jeevan Akshay-I and New Jeevan Akshay-II vide Notification S.O. No. 1562(E) dated 3.11.05 and Jeevan Akshay-III vide Notification S.O. No. 847(E) dated 1.6.2006 ]
  8. Any subscription made to any units of any Mutual Fund, referred to in clause(23D) of section 10, or from the Administrator or the specified company referred to in Unit Trust of India (Transfer of Undertaking & Repeal) Act, 2002 under any plan formulated in accordance with any scheme as the Central Government, may, by notification in the Official Gazette, specify in this behalf;[The Central Government has since notified the Equity Linked Saving Scheme, 2005 for this purpose vide Notification S.O. No. 1563(E) dated 3.11.2005]The investments made after 1.4.2006 in plans formulated in accordance with Equity Linked Saving Scheme, 1992 or Equity Linked Saving Scheme, 1998 shall also qualify for deduction under section 80C.
  9. Any contribution made by an individual to any pension fund set up by any Mutual Fund referred to in clause (23D) of section 10, or, by the Administrator or the specified company referred to in Unit Trust of India (Transfer of Undertaking & Repeal) Act, 2002, as the Central Government may, by notification in the Official Gazette, specify in this behalf;[The Central Government has since notified UTI-Retirement Benefit Pension Fund vide Notification S.O. No. 1564(E) dated 3.11.05.]
  10. Any subscription made to any such deposit scheme of, or, any contribution made to any such pension fund set up by, the National Housing Bank, as the Central Government may, by notification in the Official Gazette, specify in this behalf;
  11. Any subscription made to any such deposit scheme, as the Central Government may, by notification in the Official Gazette, specify for the purpose of being floated by 
    • (a) public sector companies engaged in providing long-term finance for construction or purchase of houses in India for residential purposes, or, 
    • (b) any authority constituted in India by, or, under any law, enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both.[The Central Government has since notified the Public Deposit Scheme of HUDCO vide Notification S.O. No.37(E), dated 11.01.2007, for the purposes of Section 80C(2)(xvi)(a)].
  12. Any sums paid by an assessee for the purpose of purchase or construction of a residential house property, the income from which is chargeable to tax under the head "Income from house property" (or which would, if it has not been used for assessee's own residence, have been chargeable to tax under that head) 
    • where such payments are made towards or by way of any instalment or part payment of the amount due under any self-financing or other scheme of any Development Authority, Housing Board etc.The deduction will also be allowable in respect of re-payment of loans borrowed by an assessee from the Government, or any bank or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in the business of providing long term finance for construction or purchase of houses in India. Any repayment of loan borrowed from the employer will also be covered, if the employer happens to be a public company, or a public sector company, or a university established by law, or a college affiliated to such university, or a local authority, or a cooperative society, or an authority, or a board, or a corporation, or any other body established under a Central or State Act.
    • The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered. 
    • Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or the cost of any addition or alteration to, or, renovation or repair of the house property which is carried out after the issue of the completion certificate by competent authority, or after the occupation of the house by the assessee or after it has been let out. 
    • Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Income-tax Act will also not be included in payments towards the cost of purchase or construction of a house property.
    • Where the house property in respect of which deduction has been allowed under these provisions is transferred by the tax-payer at any time before the expiry of five years from the end of the financial year in which possession of such property is obtained by him or he receives back, by way of refund or otherwise, any sum specified in section 80C(2)(xviii), no deduction under these provisions shall be allowed in respect of such sums paid in such previous year in which the transfer is made and the aggregate amount of deductions of income so allowed in the earlier years shall be added to the total income of the assessee of such previous year and shall be liable to tax accordingly.
  13. Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other educational institution situated in India, for the purpose of full-time education of any two children of the employee.
    • Full-time education includes any educational course offered by any university, college, school or other educational institution to a student who is enrolled full-time for the said course. 
    • It is also clarified that full-time education includes play-school activities, pre-nursery and nursery classes.
    • It is clarified that the amount allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution in India except the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature.
  14. Subscription to equity shares or debentures forming part of any eligible issue of capital made by a public company, which is approved by the Board or by any public finance institution.
  15.  Subscription to any units of any mutual fund referred to in clause (23D) of Section 10 and approved by the Board, if the amount of subscription to such units is subscribed only in eligible issue of capital of any company.
  16. Investment as a term deposit for a fixed period of not less than five years with a scheduled bank, which is in accordance with a scheme framed and notified by the Central Government, in the Official Gazette for these purposes.[The Central Government has since notified the Bank Term Deposit Scheme, 2006 for this purpose vide Notification S.O. No. 1220(E) dated 28.7.2006]
  17. Subscription to such bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by such notification in the Official Gazette, specify in this behalf.
  18. Any investment in an account under the Senior Citizens Savings Scheme Rules, 2004.
  19. Any investment as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.

B. As per section 80CCC, where an assessee being an individual has in the previous year paid or deposited any amount out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the Fund referred to in clause (23AAB) of section 10, he shall, in accordance with, and subject to the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessee's account, if any) as does not exceed the amount of one lakh rupees in the previous year.
Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section, a rebate/ deduction with reference to such amount shall not be allowed under section 88 up to assessment year 2005-06 and under section 80C from assessment year 2006-07 onwards.
C. As per the provisions of section 80CCD, where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004, has in the previous year paid or deposited any amount in his account under a pension scheme as notified vide Notification No. F.N. 5/7/2003- ECB&PR dated 22.12.2003, he shall be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited as does not exceed ten per cent of his salary in the previous year.

The benefit of new pension scheme has been extended to any other employees (also self employed person) w.r.e.f 1/04/09 and deduction is allowed to employees upto 10% of salary in the previous year and in other cases upto 10% of his gross total income in the previous year. Further it has been specified that w.r.e.f 1/04/09 any amount received by the assessee from the new pension scheme shall be deemed not to have received in the previous year if such amount is used for purchasing an annuity plan in the previous year.

It may be noted that the contribution made by the Central Government or any other employer, towards a pension scheme notified for section 80 CCD, shall be allowed as deduction in the computation of total income of the employee to the extent that it does not exceed ten percent of employee's salary. W.e.f. 01.04.2011 (FY 2011-12), the amount of deduction so allowed shall be outside the overall limit of Rs one lakh under section 80CCE of the Income Tax Act, 1961. It is therefore, clarified that contribution made by an employee alone will be eligible to deduction limit of upto Rs.one lakh. The contribution made by the Central Government or any other employee to a pension scheme u/s 80CCD(2) shall be excluded from the limit of one lakh rupees provided under Section 80CCE.

Where any amount standing to the credit of the assessee in his account under such pension scheme, in respect of which a deduction has been allowed as per the provisions discussed above, together with the amount accrued thereon, if any, is received by the assessee or his nominee, in whole or in part, in any financial year,—
(a) on account of closure or his opting out of such pension scheme; or
(b) as pension received from the annuity plan purchased or taken on such closure or opting out,
the whole of the amount referred to in clause (a) or clause (b) above shall be deemed to be the income of the assessee or his nominee, as the case may be, in the financial year in which such amount is received, and shall accordingly be charged to tax as income of that financial year.

For the purposes of deduction under section 80CCD, "salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.

The aggregate amount of deduction under sections 80C, 80CCC and sub section (1) of Section 80CCD shall not exceed Rs.1,00,000/- (Section 80CCE)

D. A new section 80CCF has been inserted by the Finance Act, 2010, wef 01.04.2011. The section 80CCF provides for deduction available to an individual or a HUF, the whole of the amount, to the extent such amount does not exceed Rs 20,000, paid or deposited during financial year 2010-11, as subscription to long-term infrastructure bonds as notified by the Central Govt for the purpose of this section.(Board Notification no 48/2010 dated 09.09.2010)
Deduction under this section can not exceed Rs 20,000 and are available only for current financial year 2011-12. The deduction under this section will be in addition to overall limit of deduction of upto Rs one lakh under section 80C, 80CCC and sub section (1) of Section 80 CCD.

INCOME TAX RATES 12-13 INDIVIDUAL AOP BOI HUF SR CITIZEN VERY SENIOR CITIZEN


As per the Finance Act, 2011, income-tax rates for the financial year 2011-2012 (i.e. Assessment Year 2012-2013) for individual,BOI,AOP,HUF is given as under.


RATES OF INCOME-TAX

A. Normal Rates of tax:

   1.  Where the total income does not exceed Rs. 1,80,000/-.
Nil
   2.  Where the total income exceeds Rs. 1,80,000 but does not exceed Rs. 5,00,000/-
10 per cent of the amount by which the total income exceeds Rs. 1,80,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-.
Rs. 32,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 8,00,000/-.
Rs. 92,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-.
B. Rates of tax for a woman, resident in India and below sixty years of age at any time during the financial year:

   1.  Where the total income does not exceed Rs. 1,90,000/-.
Nil
   2.  Where the total income exceeds Rs. 1,90,000 but does not exceed Rs. 5,00,000/-.
10 per cent, of the amount by which the total income exceeds Rs. 1,90,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-.
Rs. 31,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 8,00,000/-.
Rs. 91,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-.

C. Rates of tax for an individual, resident in India and of the age of sixty years or more but less than eighty years at any time during the financial year:

   1.  Where the total income does not exceed Rs. 2,50,000/-.
Nil
   2.  Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000/-.
10 per cent, of the amount by which the total income exceeds Rs. 2,50,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-.
Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 8,00,000/-.
Rs. 85,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-.
D. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

   1.  Where the total income does not exceed Rs. 5,00,000/-
Nil
   2.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-
20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-
   3.  Where the total income exceeds Rs. 8,00,000/-
Rs. 60,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-

  1. Surcharge on Income tax: There will be no surcharge on income tax payments by individual taxpayers during FY 2011-12 (AY 2012-13).
  2. Education Cess on Income tax: The amount of income-tax shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax.
  3. Additional surcharge on Income Tax (Secondary and Higher Education Cess on Income-tax):From Financial Year 2007-08 onwards, an additional surcharge is chargeable at the rate of one percent of income-tax (not including the Education Cess on income tax).
  4. Education Cess, and Secondary and Higher Education Cess are payable by both resident and non-resident assessees.

Monday, August 29, 2011

HOW TO DOWNLOAD FORM 16A FROM TIN NSDL SITE


For deduction of tax at source made on or after 01/04/2011:


  • The deductor, being a company including a banking company to which the Banking Regulation Act,1949 applies and any bank or banking institution, referred to in section 51 of that Act or a co-operative society engaged in carrying the the business of banking, shall issue TDS certificate in Form No.16A generated through TIN central system and which is downloaded from the TIN Website with a unique TDS certificate number in respect of all sums deducted on or after the 1st day of April, 2011 under any of the provisions of Chapter-XVII-B other than section 192
  • The deductor, being a person other than the person referred to in item (a) above, may, at his option, issue TDS Certificate in Form No.16A generated through TIN central system and which is downloaded from the TIN Website with a unique TDS certificate number in respect of all sums deducted on or after the 1st day of April, 2011 under any provisions of Chapter-XVII-B other than section 192


HOW TO REGISTER TAN AT TIN NSDL -DOWNLOAD ETDS FVU FILE


If you are a deductor of tax and liable to file E-TDS return than TAN registration is MUST for you .It is very beneficial to get your tan registered  at TIN-NSDL site.After registration you may avail following facilities.

  1. you can download consolidated FVU for etds return filled.
  2. You can check processing of ETDS return filed earlier and can get list of defaults in returns.
  3. you can upload 15CA details.
  4. You can download Form 16A(compulsory for banks/Companies to download 16A from Tin-NSDL site) 

Procedure of Filling Service Tax Return Electronically


W.e.f. 1.10.2011, all the assessees are mandatorily required to file their return electronically irrespective of amount of service tax they have paid during the previous F/Y, in terms of Notification No. 43/2011-ST dated 25.08.2011. For this, one has to follow the procedure as follows:-
(A) Get Registered with ACES

  1. Fill the “ACES DECLARATION FORM” available on the website www.servicetaxdelhi.gov.in and deposit it with the concerned Range Superintendent;
  2. Please ensure to fill email-id correctly in the form because T-PIN and password will be communicated by the department to this email-id only;
  3. After receiving the T-PIN and Password, visit the website www.aces.gov.in and Click on the service tax button provided on the left side of ACES Homepage to login;
  4. Enter the T-PIN and password to log into the system. For first time login, ACES will mandatorily prompt for changing the password;
  5. Set the new password. It is to note that user id (called as T-PIN) once selected can never be changed, even during the course of first time login;
  6. For second and every subsequent login into ACES, take the note of this user-id and Password as set above

IT IS IMPORTANT TO NOTE THAT ALL THE ASSESSEE WHO ARE NOT REGISTERED WITH ACES SHOULD GET THEMSELVES REGISTERED WITH ACES WELL IN ADVANCE, TO AVIOD LAST DAYS RUSH AND FILE THE RETUN WITHIN TIME.

(B) How to fill the Return Electronically
There are two methods of filling the return electronically, namely:

  • Online filling of data in service tax return and then submit it.
  • Offline filling of data using excel utility and then upload it.

(1) Online Filing of data in Service Tax Return and Submit it

  1. Login into ACES by entering the user-id and password. Home page of the assessee will appear;
  2. Under ‘RET’ Main menu, click on the ‘fill’ option of ‘fill ST-3’ sub-menu i.e. RET Menu Fill ST-3 Fill.
  3. A page will appear listing the Premises code and Address of the registered premises of the assesssee. Premises code will appear as hyperlink. Click on the hyperlink to prepare the ST-3 Return;
  4. After filling the return correctly, Click on the ‘SAVE’ Button appearing on last page and confirmation page of ST-3 will appear;
  5. To Amend, Click on the ‘Modify’ button or ‘Save’ to store the Return in the database;
  6. To submit the ST-3 Return to the department, press “SUBMIT” button. Confirmation will appear for successful submission of ST-3 Return displaying the Unique No. for such Return;
  7. Return saved in ACES can be amended before submission by the assessee by clicking on the “Amend ST-3” button under “Fill ST-3” sub-menu.
  8. In the same way, Return after submission can be revised once in 90 days by clicking on the “Revise ST-3” option of “Fill ST-3” submenu.

(2) Offline filling of data using excel utility and then upload it;

  1. Click on the ‘Download’ button provided on the left side of ACES Homepage and download excel utility by clicking on the hyperlink “Download ST3 Return Excel Utility”;
  2. Use the excel utility to prepare ST-3 return and click on “Validate & Submit” button on the last page to generate XML file;
  3. The XML file will be saved in the same folder where the download utility is saved by the user;
  4. To upload the ST-3 Return, login into ACES by entering the user-id and password. Click on “Upload File” option of “e-filing” submenu under “RET” Main Menu;
  5. i.e. RET Main Menu e-filing Upload file
  6. Click the “Save” button to save the return in the database of the assessee; Else click on “SUBMIT” button to file the return;
  7. Confirmation will appear for successful uploading of Return without any Unique No.;
  8. After uploading, click on “View Status” option of “e-filing” submenu under “RET” Menu to view status of Return. A return will be considered as filed only when its status is shown as ‘FILED’ which should be appeared on or before the last due date of 25th April/25th October, as the case may be, for treating the return ‘filed on time’.

(3) THE ASSESSEES CAN ALSO ‘VIEW’, ‘SAVE’ AND ‘PRINT’ THEIR FIELD ST-3 RETURN AT ANY TIME BY CLICKING ON THE BUTTON ‘VIEW ST-3’ UNDER ‘RET’ MENU AFTER SUUCESSFUL LOGIN INTO ACES.

Hope the above will assist you in your Professional endeavors.


With Warm Regards

Atul Kumar Gupta
B Com (Hons) FCA, AICWA, MIMA
Former Chairman NIRC of ICAI
Former Chairman NIRC of ICWAI
Author of “An Introduction to Service Tax”
Author of “Comprehensive Guide to Service Tax”
Mobile : 9810103611
Email : atul@servicetax.net

Sunday, August 28, 2011

TDS RATES 11-12 TDS RATE CHART CUT OFF AMOUNT TDS RATE 12-13


Tds Rates for financial year 2011-12 and assessment year 2012-12 is given in the TDS RATE chart 12-13 .Same rate was also applicable on Financial year 200-11 (assessment year 2011-12).

TCS (Tax collection at source is also given after this chart)

Tags:Tds rates on Interest ,TDS on contractors ,tds on commission, tds on rent , tds on professional services , tds on transport,TDS deposit due dates ,Interest on late deposit of TDS, TDS Latest charts ,latest TDS rates

Download TDS RATES CHART 2011-12 In PDF format
Note:
  1. Yearly Limit u/s 194C:Also where the aggregate of the amounts paid/credited or likely to be paid/credited to Contactor or Sub-contractor exceeds Rs.75,000 during the financial year, TDS has to be made u/s 194C.
  2. TDS at higher rate ie., 20% has to be made if the deductee does not provide PAN to the deductor.(read detail u/s 206AA)
  3. No TDS on Goods Transport  :No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.(read details here No TDS on Goods Transport )
  4. Surcharge on Income-tax is not deductible/collectible at source in case of  individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary.
  5. In the case of Company other than Domestic Company, the rate of surcharge is @ 2.5% of Income-tax, where the income or the aggregate of such income paid or likely to be paid exceeds Rs.1,00,00,000. 
  6. NoCess on payment made to resident:Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary.Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.

TDS by Individual and HUF (Non Audit) case not deductible
An Individual or a Hindu Undivided Family whose total sales, gross receipts or turnover from business or profession carried on by him does not exceeds the monetary limits(Rs.60,00,000 in case of business & Rs.15,00,000 in case of profession) under Clause (a) or (b) of Sec.44AB during the preceding financial year shall not be liable to deduct tax u/s.194A,194C, 194H, 194I & 194J.So no tax is deductible by HUF/Individual in first year of operations of business even sales/Fees is more than 60/15 Lakh.


TCS (tax collection at source rates fy 2011-12)(read more details by Tax collection at source)


Sl.No.
                              Nature of Goods
Rates in %
1.
Alcoholic liquor for human Consumption
1
2.
Tendu leaves
5
3.
Timber obtained under  forest lease
2.5
4.
Timber obtained by any mode other than a forest lease
2.5
5.
Any other forest produce not being timber or tendu leaves
2.5
6.
Scrap
1
7.
Parking lot
2
8.
Toll plaza
2
9.
Mining & Quarrying
2

As a common rule tax is to be deposited with 7th of the immediate next month after deduction .However March tax is to be deposited by 30th April of the next financial year.For March ,2011 tds ,due date is 30.04.2011 and March 2012 due date is 30.04.2012.  

Rule is reproduced hereunder for your ready reference.(read full rule and notification 41/2010 dated 31.05.2010)

“Time and mode of payment to Government account of tax deducted at source or tax paid under sub­ section (1A) of section 192.
Rule :30.
(1) All sums deducted in accordance with the provisions of Chapter XVII‐B by an office of the Government shall be paid to the credit of the Central Government ‐

  • (a) on the same day where the tax is paid without production of an income‐tax challan; and
  • (b) on or before seven days from the end of the month in which the deduction is made or income‐tax is due under sub‐section (1A) of section 192, where tax is paid accompanied by an income‐tax challan.
(2) All sums deducted in accordance with the provisions of Chapter XVII‐B by deductors other than an office of the Government shall be paid to the credit of the Central Government ‐
  • (a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and 
  • (b) in any other case, on or before seven days from the end of the month in which‐
    1.  the deduction is made; or
    2.  income‐tax is due under sub‐section (1A) of section 192.
(3)    Notwithstanding  anything  contained  in  sub‐rule  (2),  in  special  cases,  the  Assessing Officer  may,  with  the  prior  approval  of  the  Joint  Commissioner,  permit  quarterly payment  of  the  tax  deducted  under  section  192  or  section  194A  or  section  194D  or section  194H  for  the  quarters  of  the  financial  year  specified  to  in  column  (2)  of  the Table below by the date referred to in column (3) of the said Table:‐



Person required to file ETDS Return Filing due Dates

NOTIFICATION No. 238/2007, dated 30-8-2007.Now following person are liable to file etds/etcs return.

1. All Government department/office or

2. All companies.or

3. All person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

4 The number of deductees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,

The Due Dates for filing Quarterly Statements for TDS/TCS are as under

For quarter ended
Due Dates
30/06/2011
15/07/2011
30/09/2011
15/10/2011
31/12/2011
15/01/2012
31/03/2012
15/05/2012
DUTIES OF TAX DEDUCTOR/COLLECTOR
  1. To apply for Tax Deduction Account Number (TAN) in form 49B, in duplicate at the designated TIN facilitation centers of NSDL(please see www.incometaxindia.gov.in), within one month from the end of the month in which tax was deducted.
  2. To quote TAN (10 digit reformatted TAN) in all TDS/TCS challans, certificates, statements and other correspondence.
  3. To deduct/collect tax at the prescribed rates at the time of every credit or payment, whichever is earlier, in respect of all liable transactions.
  4. To remit the tax deducted/collected within the prescribed due dates by using challan no. ITNS 281 by quoting the TAN and relevant section of the Income-tax Act.
  5. To issue TDS/TCS certificate, complete in all respects, within the prescribed time in Form No.16(TDS on salaries), 16A(other TDS) 27D( TCS).
  6. To file TDS/TCS quarterly statements within the due date.
  7. To mention PAN of all deductees in the TDS/TCS quarterly statements.
CONSEQUENCES OF DEFAULT

Failure to deduct or remit TDS /TCS(full or part)
  • Interest:Interest at the rates in force (12% p.a.) from the date on which tax was deductible /collectible to the date of payment to Government Account is chargeable. The Finance Act 2010 amended interest rate wef 01.07.2010 and created a separate class of default in respect of tax deducted but not paid to levy interest at a higher rate of 1.5 per cent per month, i.e. 18 per cent p.a. as against 1 per cent p.m., i.e. 12 per cent p.a., applicable in case the tax is deducted late after the due date. The rationale behind this amendment is that the tax once deducted belongs to the government and the person withholding the same needs to be penalized by charging higher rate of interest Penalty equal to the tax that was failed to be deducted/collected or remitted is leviable.
  • In case of failure to remit the tax deducted/collected, rigorous imprisonment ranging from 3 months to 7 years and fine can be levied.
  • Dis allowance of Expense for non deposit of TDS -Section 40(a)(ia)
  • Failure to apply for TAN in time or Failure to quote allotted TAN or Wrong quoting of TAN :Penalty of Rs.10,000 is leviable u/s.272BB(for each failure)
  • Failure to issue TDS/TCS certificate in time or Failure to submit form 15H/15G in time or Failure to furnish statement of perquisites in time or Failure to file Quarterly Statements in time: For each type of failure, penalty of Rs.100/- per day for the period of default is leviable. Maximum penalty for each failure can be up to the amount of TDS/TCS.
Download TDS RATES CHART 2011-12 In PDF format
GENERAL INFORMATION
  1. Deduction at lower or nil rate requires certificate u/s.197, which will take effect from the day it is issued. It cannot be used retrospectively.
  2. If TDS/TCS certificate is lost, duplicate may be issued on a plain paper giving necessary details marking it as duplicate.
  3. Refund can be claimed by the deductee on filing of return of income.
  4. Even if the recipient of payment has shown it in his income-tax return and paid the taxes thereon, the deductor/collector who has failed to deduct/collect tax will be liable to pay interest and penalty.

This brochure should not be construed as an exhaustive statement of law. In case of doubt, reference should always be made to the relevant provisions of Income Tax Act, Rules or Notifications.
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COST INFLATION INDEX FY 2011-12 1981 TO 2012


Cost Inflation for any year means any such index as the the central Govt may declare on the 75% basis of CPI every year.The purpose of the The cost inflation index is to calculate indexed cost of acquisition and indexed cost of improvement for computation of long term capital gain.
Cost Inflation Index for 1981 to 2012 is given in the chart below for your ready reference.


Friday, August 26, 2011

Service Tax Return online filing made Compulsory for all Assessees


With effect from 01.10.2011, it’s mandatory for all assessees to file service tax return electronically (Notification No. 43/2011-ST dated 25.08.2011). Prior to this amendment only assessees who have paid service tax of Rs. 10 Lakhs or more (including payment by utilisation of CENVAT Credit) in the previous financial year are required to file service tax return online.Due date to file half yearly return are 25,October and 25 April for first & second half yearly return respectively.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
*****
Notification No. 43/2011 – Service Tax

New Delhi, the 25th August 2011
Bhadra 3, 1933 (Saka)

G.S.R. 642 (E).- In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely :-

1. (1) These rules may be called the Service Tax (Fourth Amendment) Rules, 2011.
(2) They shall come into force on the 1st day of October, 2011.

2. In the Service Tax Rules, 1994, in rule 7, -
(a) in sub-rule (2), the proviso shall be omitted;
(b) after sub-rule (2) as so amended, the following sub-rule shall be inserted, namely:-

“(3) Every assessee shall submit the half-yearly return electronically”.

[F. No. 137/99/2011 – Service Tax]

(Deepankar Aron)
Director (Service Tax)


Note.- The principal rules were notified vide notification No. 2/1994 – Service Tax dated the 28th June 1994, published in the Gazette of India, Extraordinary, Part II, section 3, Sub-section (i), vide number G.S.R. 546(E), dated the 28th June, 1994 and were last amended by notification No. 35/2011 - Service Tax, dated the 25th April, 2011, vide number G.S.R. 343 (E), dated the 25th April, 2011.

Thursday, August 11, 2011

INCOME TAX RATE SLAB AY 2011-12 10-11 09-10 06-07 08-09 07-08



Income tax rate chart /slabs for Assessment year 2011-12 and earlier years has been given chart form as under in respect of Individual , HUF(hindu undivided Family) ,BOI(body of individuals) ..So download The charts for Link given below or you can read the same online as shown below


INCOME TAX RATES FOR AY  2006-07 TO AY 2011-12 FOR INDIVIDUAL ,HUF ,BOI,AOP
                                                      www.itaxindia.org


Assessment  year
Rate
Resident woman
Resident Sr citizen
General/others
Nil
Up to 190000
Up to 240000
Up to 160000
10%
190000-500000
240000-500000
160000-500000
20%
500000-800000
500000-800000
500000-800000
30%
Above 800000
Above 800000
Above 800000
Surcharge: NIL
Cess: 3% on Income Tax (2 % education cess ,1% Higher secondary cess)
Nil
Up to 190000
Up to 240000
Up to 160000
10%
190000-300000
240000-300000
160000-300000
20%
300000-500000
300000-500000
300000-500000
30%
Above 500000
Above 500000
Above 500000
Surcharge: NIL
Cess: 3% on Income Tax (2 % education cess ,1% Higher secondary cess)
Nil
Up to 180000
Up to 225000
Up to 150000
10%
180000-300000
225000-300000
150000-300000
20%
300000-500000
300000-500000
300000-500000
30%
Above 500000
Above 500000
Above 500000
Surcharge: 10 % on Income Tax if income Exceeding Rs 10,00,000
Cess: 3% on Income Tax & surcharge (2 % education cess ,1% Higher secondary cess)
Nil
Up to 145000
Up to 195000
Up to 110000
10%
145000-300000
195000-300000
110000-300000
20%
300000-500000
300000-500000
300000-500000
30%
Above 500000
Above 500000
Above 500000
Surcharge: 10 % on Income Tax if income Exceeding Rs 10,00,000
Cess: 3% on Income Tax & surcharge (2 % education cess ,1% Higher secondary cess)
2006-07 and
Nil
Up to 135000
Up to 185000
Up to 100000
10%
135000-300000
185000-300000
100000-300000
20%
300000-500000
300000-500000
300000-500000
30%
Above 500000
Above 500000
Above 500000
Surcharge: 10 % on Income Tax if income Exceeding Rs 10,00,000
Cess: 2% on Income Tax & surcharge (2 % education cess )



Download Income tax rates /slab for Individual/HUF/BO AY 2006-07 to AY  2011-12
Tags:INCOME TAX RATES CHART AY 2011-12 INCOME TAX RATES CHART AY 2010-11 INCOME TAX RATES CHART AY 2009-10 INCOME TAX RATES CHART AY 08-09 INCOME TAX RATES CHART AY 2007-08 INCOME TAX RATES CHART AY 2006-07 ,TAX RATES FOR INDIVIDUALS ,TAX RATE FOR HUF ,TAX RATES FOR BOI, TAX RATES FOR COMPANIES,