ALL MUTUAL FUND INVESTMENT IN ONE STATEMENT

Friends,

Soon, investors could have one consolidated monthly statement for investments made across different mutual funds. The Association of Mutual Funds in India (Amfi) committee on operations and compliance is likely to take a decision on Thursday on Securities and Exchange Board of India's (Sebi) advice in this regard.

“ We are working on the issue of common statement, however some technical issues are be sorted out,”said Amfi CEO HN Sinor.

The issue of sharing costs has to ironed out, he added.

“Some big fund houses are not in favour of this move. But it is likely to be implemented in the next few days,” a committee member said.

If Sebi makes it mandatory, close to one crore mutual fund investors will get a single statement of all transactions once a month. Currently, fund houses have to send statements once every quarter. Many mutual fund houses don't send statements at all to save on mailing costs.

As per Sebi's current guidelines, fund houses have to send statement of accounts within 10 working days of a transaction.

However, some industry players have reservations about this move as it could affect the communication and marketing of their schemes. Mutual fund houses communicate launch of new schemes to the investors and give them the option to buy more units.

“If implemented, it will be beneficial not only for investors but also fund houses, as cost of sending statement to all the investors will fall,” IDBI Mutual Funds managing director and CEO Krishnamurthy Vijayan said.

At present, registrar and transfer agents Karvy, CAMS and FTAMIL provide consolidated statements to investors online.

A sales head of a top fund house on condition of anonymity said, “Have you ever seen a telecom company or even banks giving a consolidated statement to its investors, then why are they targeting only mutual funds. We are being forced to give our approval and some of the fund houses are not happy with this move.”

Deduction u/s. 80DD in respect of expenses incurred on maintenance/ medical treatment of a disabled dependant

Friends,

 In Past few years cost of medical treatment has shoot up very sharply and has made medical treatment almost out of reach of Lower and Middle class families in India. Government of India has in order to provide some relief to those who have a dependant with disability or sever disability provided some relief’s from Income tax under section 80DD of the Income Tax Act, 1961.

Who is eligible to claim deduction?

· Individual or a Hindu undivided family, who is a resident in India.

· Deduction u/s 80DD is not available to non-resident Indian (NRI).

What Expenses are eligible for deduction?

· Expenditure for the medical treatment (including nursing), training and rehabilitation of a disabled dependant.

· Money paid to Life Insurance Corporation (LIC), Unit Trust of India or any other insurer for the purpose of buying specified scheme or insurance for the purpose of maintenance of such dependant.

Definition of relative: Who can be your disabled dependant?

· For individuals, your spouse, son / daughter (any child), parents and brother / sister (siblings) can be your handicapped dependants.

· For HUFs, any member of the HUF can be a disabled dependant.

· The disabled person should be wholly or mainly dependant on you for his / her support and maintenance, and should not have claimed deduction under section 80U.

Some considerations for the insurance premium

· Not all schemes qualify – there are specific schemes meant for this purpose. The policy has to insure your life. i.e. it should be in your name.

· Premium is required to be paid on annual basis or a lump sum amount for the benefit of the disabled dependant.

· Nomination of Policy should be in the name of (a) your disabled dependant, or (b) any other person or trust that would receive the money for the benefit of your disabled dependant

Policies in which one can Invest

· Life Insurance Corporation of India offers two insurance policies – Jeevan Aadhar and Jeevan Vishwas for the benefits of parents or guardian of person with physical disabilities which qualify for tax benefit under Section 80DD.

These policies ensure that the dependant person with physical handicap does not have to depend on anybody for financial support in case something happens to his parent or guardian. The Jeevan Aadhar is a non- profit policy and is relatively cheaper whereas the Jeevan Vishwas is a policy which participates in profits.

Under both these insurance polices, the life of the person, on whom the handicapped person is dependant, is insured. In case the dependant dies before the guardian/parent, the parent/guardian will have the option to either keep the policy for a reduced paid-up sum assured or entitled to receive the refund of premiums paid.

However if the parent/guardian dies before the dependant, 20% of the lump sum assured becomes payable for the benefit of the dependant. Moreover the balance is paid by way of monthly annuity for 15 years for sure and thereafter for life on the life of dependant.

· The health insurance cover provided by National Trust needs special mention. The trust has introduced “Niramaya” health Insurance Scheme for persons with disabilities like Autism, Cerebral Palsy and Mental Retardation etc. Under this scheme, for those who have family income of less than Rs. 15,000 per month, you need to make a payment of Rs. 250 per year. For the person having family income of more than Rs. 15,000 per month is required to pay an amount of Rs.500 per year. For the families which are Below Poverty Line (BPL) this scheme is free, provided the applicant holds the BPL card. This scheme covers health expenses up to a limit of Rs. 100,000 per year for the person suffering from these disabilities. The scheme is administered by National Trust in collaboration with ICICI Lombard. Under this scheme even existing disease are covered without any medical check up. Moreover this plan covers routine expenses like medical check up, transportation and corrective surgery etc. which are not covered under regular health insurance products.

What is considered as disability and Severe Disability?

Disability would be as defined under clause (i) of section 2 by the “Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”.

It includes the following:

· Blindness

· Low vision

· Leprosy-cured

· Hearing impairment

· Locomotor disability

· Mental retardation

· Mental illness

· Autism

· Cerebral palsy

· Multiple disability

A person with disability means a person suffering from not less than 40% of any of the above disabilities.

Severe disability means 80% or more of one or more of the above disabilities.

Other Conditions to claim deduction

· For claiming the deduction in respect of the above, you have to furnish a medical certificate of disability from a Government Hospital certifying the disability of the dependant. The certificate needs to be renewed periodically.

· For people having Autism, Cerebral Palsy or multiple disabilities, form number 10-IA needs to be filled up. There are two other formats for person suffering from mental illnesses and all other disabilities.

· People have to furnish self declaration certifying the expenditure incurred on account of medical treatment (including nursing), training and rehabilitation of the handicapped dependant.

· You do not have to preserve the actual receipts for expenses incurred. However you will have to produce the actual receipts in case you claim deduction in respect of payment made to LIC, UTI etc for the purpose of buying insurance or other schemes for maintenance of such dependant.

Who can issue medical certificate of disability?

 Neurologist having a degree of Doctor of Medicine (MD) in Neurology (or, in case of children, a Pediatric Neurologist having an equivalent degree)

· A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital

Taxability of Premium Amount Paid in Case disable dependant dies before the taxpayer:- In case your disabled dependant predeceases you (that is, dies before you); the amount in the policy is returned to you. This would be treated as your income for the year in which you receive it, and would be fully taxable in your hands.

Amount of Deduction and Tax Saving

· The deduction allowed is Rs. 50,000 if disabled dependant is not suffering from severe disability.

· Deduction allowed goes up to Rs. 1,00,000 if disabled dependant is a person with severe disability.

· Deduction not depend on amount of expenses incurred:- Even if your actual expenses on above mentioned disabled dependant relative is less then amount mentioned above you will be eligible to full deduction.

· The income tax that you can save would depend on the tax bracket that you fall into – it can range from Rs. 5,000 to Rs. 15,000 (for Rs. 50,000 deduction) or from Rs. 10,000 to Rs. 30,000 (for Rs. 1,00,000 deduction).

Conclusion:- The physical and mental agony experienced by the parents/ guardian of such dependants cannot be taken away but Government of India, National Trust, LIC and other charitable institutions are doing commendable job by reducing the financial agony of such families. It is important for all of us to look for such benefits available and talk these about in various media to take it across as many people as possible. This is a bit of social work which can give relief to handicapped persons and their parents.

Frequently Asked Questions

Question - I am a salaried person who had a son with hearing impairment. My son underwent an operation for cochlear implantation and I spent around Rs 6 lakh for it. Can I get any tax benefit for the treatment expenses?

Answer:- Section 80DD allows a deduction to an individual or HUF if the person has incurred in the previous year any expenditure on medical treatment (including nursing), training and rehabilitation of a dependant with a disability or paid or deposited any amount under a scheme framed in this behalf by an insurer for the maintenance of a dependant with a disability.

A person with a disability is one suffering from not less than 40 per cent of a disability (as certified by a medical authority working in a hospital or institution notified by the Government), which could be blindness, low vision, leprosy – cured, hearing impairment, locomotor disability, mental retardation, mental illness.

Hearing impairment, for this purpose, means a loss of 60 decibels or more in the better ear in the conversational range of frequencies.

A person with disability also includes the one suffering from autism, cerebral palsy, mental retardation or a combination of any two or more. Section 80DD allows a deduction of up to Rs 50,000 a year and if the disability is severe, up to Rs 1,00,000 a year. Severe disability means a person with 80 per cent or more of the disability. You can claim deduction if your fits into these categories.

Question:- My father is a pensioner and his pension is less than my salary. My sister is a disabled dependant with 85% disability. She is dependant on me. Can I get rebate under section 80DD? My Assessing Officer says that your father is alive and is getting pension; so you cannot claim deduction. Is it true?

Answer:- Your Assessing Officer is not correct. The deduction u/s 80DD is for dependant of an individual tax payer and dependant includes brother and sister of Individual. You can furnish to Your Assessing officer an undertaking from your father that your sister is dependant on you and not on your father.

Question:- I have a handicapped dependant who is my cousin ( Daughter of my mother’s sister). She is completely dependant on me and every month I spend Rs 10,000. She is suffering from 85 % Blindness and mental problem. I wanted to know whether I can claim tax benefit under 80DD?

Answer U/s. 80DD dependant means in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;

It is clear that section 80DD is applicable only if the person on whom you are spending are any one of following

your wife or husbandyour childrenyour parentsyour brotheryour sisteryour wife’s or husband’s brother or sisteryour parents’ brother or sister

The Daughter of your mother’s sister is, clearly, not coming under the definition of dependant for the purpose of claim of deduction u/s 80DD. So, you can not claim deduction u/s. 80DD in respect of expenses incurred for her maintenance and medical treatment.

Unique ID enrolment process by Oriental Bank of Commerce

Friends,

Oriental Bank of Commerce (OBC) on Friday commenced the enrolment process for issuance of unique identification number (Aadhaar) for its customers and staff of the bank. The enrolment process which has begun at the head office will move in phases to the branches across the country, OBC's Chairman and Managing Director, Mr T.Y. Prabhu, said here today.

There is no specific timeline by when all the 16,000 employees and 1.6 crore customers will be covered, Mr Prabhu noted.

“OBC is the first bank in the banking industry to commence the enrolment process for issuance of UID which includes both demographic and biometric details,” he said after inaugurating the enrolment process at the head office of the bank. Mr Prabhu was the first person in OBC to enrol for a UID.

Mr Prabhu said that the launch of the unique identification number (UID) enrolment process will accelerate efforts in the financial inclusion activities undertaken by the bank by using hi-tech biometric based ATMs and use of UID in financial transactions.

According to the current arrangement, UIDAI will pay Rs 50 to OBC for every UID allotted through the bank. OBC had in August this year signed an memorandum of understanding (MoU) with UIDAI for taking up the role of a registrar.

The issuance of Aadhaar numbers had formally kicked off end September with the Prime Minister, Dr Manmohan Singh, and the UPA Chairperson, Ms Sonia Gandhi, handing out UID numbers to residents of Tembhli village in Nandurbar district of Maharashtra.

Since then the UIDAI has rapidly ramped up enrolments for the Aadhaar number across seven States – Andhra Pradesh, Chhattisgarh, Delhi, Jharkhand, Karnataka, Madhya Pradesh and Maharashtra. Earlier this week, UIDAI said it has crossed one lakh enrolments, with the issue of Aadhaar number to a resident of Tumkur, Karnataka.

When contacted, UIDAI DG, Mr R.S Sharma, told Business Line that with the official launch in September, all the States are now gearing-up for enrolments in a big way. “However, I cannot give-out monthly target at this point,” Mr Sharma said.

The Government has earlier said that the first set of 10 crore UID numbers are expected to be issued between August 2010 and March 2011. Thereafter, 600 million (or 60 crore) UID numbers are expected to be issued within the next three years.

TAX BENEFIT ON HRA AND HOME LOAN -AVAILABLE OR NOT?

Friends,

HRA – allowance is one of the components of salary package, which is normally offered to employees by their employers to meet the higher cost of renting a home. Tax exemption under Income Tax Act for HRA is allowed to salaried persons who are occupying a rented accommodation. It is being regulated by 2A of Income Tax Rules, 1962 and Section 10(13A) of the Income Tax Act, 1961. Accordingly, least of the following three options will be exempt from tax

    * [a.) 50% of the basic salary and DA, where the residential house is situated at Mumbai, Kolkata, Delhi or Chennai and an amount equal to 40% of above salary where residential house is situated in any other place.
    * [b.] HRA actually received by the employee in respect of the period during which rented accommodation is occupied by the employee during the financial year
    *  [c.] the excess of rent paid over 10% of the salary.

Some times, salaried persons who avail home loan for acquisition or construction of residential house properties but could not stay in such properties owing to employment or other reasons and they stay in rented houses. In such circumstance, when they are receiving a HRA - allowance from their employer, a question often arises

whether they can get exemption of HRA under section 10(13A) of the Act?, based on the rent actually paid by them as well as the interest payable on the housing loan taken by them towards acquisition or construction of a property.

To avail HRA benefit,

    * salaried employee who is in receipt of HRA from his employer
    *  should be actually paying house rent for the rented premises which he has occupied and
    *  such rented premises must not owned by him.

It is evident from the above section the exemption of HRA is available to an assessee so long as he occupies the rented premises which is not owned by him. At the same time, the assessee is not barred from claiming exemption under section 10(13A) read with rule 2A, because he be the owner of any other house property, which was acquired through housing loan. It is to be noted that provisions of deduction of interest on borrowed capital for the acquisition or construction of house property and exemption of house rent allowance are two different issues under the Act, as one would not influence other. The benefits accrue on account of availing home loan are interest payments which is exempted under section 24(b) and the principal repayment is exempted under section 80C of the Income Tax Act. Conversely, HRA benefit can also be availed by the assessee on fulfillment of certain circumstances depicted above.
PR. Raamaanathan, CS

INTEREST ON HOUSE LOAN SELF OCCUPIED HOUSE 150000 or 30000?

Friends,

As you may know where a person has occupied more than one house for residential purposes, only one house, as chosen by him will be treated as ‘self occupied’ and all other houses will be deemed to be let out and the income from such houses would be computed as indicated earlier. In regard to one house treated as used for own residential purposes throughout the year, Section 23 (2) (a) prescribes that annual value of such house shall be taken to be nil, if the conditions mentioned below are satisfied:

    * the property (or part thereof) is not actually let during whole (or any part) of the previous year; and
    *  no other benefit is derived therefrom

Interest on borrowed capital for self occupied property

The maximum amount of interest permissible in cases of  self-occupied property is Rs.1,50,000 (in respect of funds borrowed on or after 01.04.1999). Interest upto Rs.1,50,000 is deductible if the following conditions are satisfied:

    * Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property;
    * the acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed; and the person extending the loan certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house or as refinance of the principal amount outstanding under an earlier loan taken for such acquisition or construction.


In the above context the following further aspects have to be kept in view:

   1. If capital is borrowed for any other purpose (e.g. if capital is borrowed for reconstruction, repairs or renewals of a house property), then the maximum deduction on account of interest is Rs.30,000 (and not Rs.1,50,000).
   2. There is no stipulation regarding the date of commencement of construction. Consequently, the construction of the residential unit could have commenced before April 1,1999 but, as long as its construction/ acquisition is completed within 3 years, the higher deduction of Rs.1,50,000 would be available. Also, there is no stipulation regarding the construction/acquisition of the residential unit being entirely financed by the loan taken on or after April 1, 1999. It may be so in part.However, the higher deduction upto Rs.1,50,000 can be taken for the loan which has been taken and utilized for construction/acquisition after April 1, 1999. The loan taken prior to April 1, 1999 will carry deduction of interest upto Rs. 30,000 only (CBDT’s circular No. 779,dated September 14, 1999).


Rs. 1,50,000 maximum deduction will not be available in the following situations:


   1.  if capital is borrowed before April 1, 1999 for purchase,construction, reconstruction, repairs or renewals of a house property;
   2. if capital is borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property; and
   3. if capital is borrowed on or after April 1, 1999 but construction is not completed within 3 years from the end of the year in which capital was borrowed. In the above situations only deduction upto Rs. 30,000 can be claimed.

   1. Interest On house Loan and Income tax
   2. Interest on Pre-Construction period on house loan -calculation and deduction available in income tax.
   3. Interest In case of Self occupied House-Limit 150000/30000
   4. House Loan Repayment and Savings under section 80C
   5. House Loan and HRA both benefit available.
   6. House property income and House Loan

Section 24(b) reproduced hereunder for your ready reference

24(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed 24[within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees.

Explanation.Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:]

Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.

Explanation.For the purposes of this proviso, the expression new loan means the whole or any part of a loan taken by the assessee subsequent to the capital borrowed, for the purpose of repayment of such capital.

Submit Form 15H/15G as applicable to avoid Tax Deduction at Source

Friends,

(DOWNLOAD FORM FOR FREE FROM HERE)

Form 15G and form 15H are used for avoiding the TDS deduction at source if deductee expects his Income to be lower then the taxable limit. In this article we are discussing important points to remember while submitting the Form 15G and Form 15H to the deductor. We have also included frequently asked questions and answers on Form 15G and Form 15H.

Form 15H :- Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual who is of the age of sixty-five years or more claiming certain receipts without deduction of tax.

·         Form 15H can be submitted only by Individual above the age of 65 years.

·         Estimated tax for the previous assessment year should be nil. That means he did not pay any tax for the previous year because his income is not coming under the taxable limit.

·         You need to submit form 15H to banks if interest from one branch of a bank exceeds 10000/- in a year.

·         This form should be submitted to all the deductors to whom you advanced a loan. For example you have deposit in three SBI bank branches Rs.100000 each. You must submit the Form 15H to each branch.

·         Submit this form before the first receipt of your interest. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of the quarter.

·         You need to submit for 15H  if interest on loans, advances, debentures , bonds or say interest income other than interest on bank deposits exceeds Rs.5000/-.


Form 15G:- Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax of tax.

·         Form 15G can be submitted by Individual who is below the age of 65 years and by Hindu Undivided family.

·         The points applicable for 15H are applicable to the Form 15G as well, except that the Form 15H is applicable only for the senior citizens.

·         Form 15G should be submitted before the first receipt of interest on fixed deposits.

Difference between form 15G and 15H:-

(DOWNLOAD FORM FOR FREE FROM HERE)
1.    Form 15G can be submitted by an individual below the Age of 65 Years while form 15H can be submitted by senior citizens i.e. individual’s above the age of 65 years.

2.    Form 15G can be submitted by Hindu Undivided families but form 15H can be submitted only by Individual above the age of 65 years.

3.    15G CAN NOT BE filed by any person whose income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax.

In a nutshell we can say that anybody whose tax on estimated income is not NIL and having income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax can not file DECLARATION u/s 15G . This is clear from the points 3 & 4 of the of the From 15G.

However, if you are eligible and also fulfill the conditions, the payer can not deduct the tax even if it is above Rs.10,000.

Note:- Maximum amount not chargeable to tax for Hindu Undivided family (HUF) and Individual male (below the age of 65 years) for A.Y. 2011-12 is Rs. 160000/- and for Individual female (below the age of 65 years) for A.Y. 2011-12 is Rs. 190000/- .

Senior Citizens who are eligible to file Declaration in Form 15H have no such conditions. They can submit Form 15H even if their Total Income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax (Rs. 240000) but if tax payable by them is NIL. This is clear from point 4 of the form 15H, which reads as under:-

” 4. that the tax on my estimated total income, including *income/incomes referred to in the Schedule below computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on relevant to the assessment year _____________ will be nil”


FREQUENTLY ASKED QUESTION ANSWERS ON FORM 15G AND FORM 15H

Question 1:-  I am 70 years old. I invested a sum of Rs 5,00,000 in January 2004, in GOI 8 per cent savings bonds (taxable), 2003, via a leading private bank. The bonds issued were on a cumulative basis with a maturity period of six years. The total interest payable at the time of maturity is Rs 3,00,500. I have declared the income from the bonds on an accrual basis y-o-y, and have been filing tax returns since A/Y 2006/07. But the bank is not accepting Form 15H stating that the total interest payable on maturity is more than the threshold limit for senior citizens – Rs 2,40,000, and is insisting on my submitting Certificate u/s 197 from the IT office. What do I do?

Answer 1:- The bank should have deducted tax at source. It seems the bank has not provided for the accrued interest and is therefore not accepting Form 15H. You can prove that the tax on your total income of the previous year in which the interest is to be received shall be nil, even after including the cumulative interest the bank should not resort to tax deduction at source. You can submit Form 15H for deduction of tax at source for A.Y. 2010-11.


Question 2 :- I am a senior citizen having income liable for tax deduction at source in respect of my deposits with State Bank of Hyderabad. They asked me whether I would be filing declaration in Form 15G or 15H in the first week of March in respect of payments made during the year so that I am in a position to judge whether I have taxable income for the year or not and file declaration in Form 15H, if I have no taxable income. On the other hand, State Bank of India and, I understand, some other banks require form at the time of deposit itself. It may not be proper for the bank to act on such declaration made in one year for another year or for that matter act on a declaration which had become stale filed in earlier part of the year for payment towards the end of the year. What is the correct position of law?

Answer 2 :- The doubt raised by the reader is a valid one. The law itself does not provide for any date on which the declaration is required to be filed as long as it relates to the income of the year and filed during the year. Since the deduction of tax at source has to be decided on the date of each credit or payment, deduction has to be made for each such credit or payment. Where an investor is not able to file the declaration in earlier part of the year in view of the uncertainty as to the prospect of his income crossing the exemption limit, he can probably inform the bank that deduction could be deferred till the end of the year. But then, the bank would like to have the declaration at the time of payment so that the declaration may necessarily be filed before the first quarterly payment, if the interest is payable quarterly. The difficulty for the investor in ascertaining the income in advance in such cases cannot be avoided. Tax may have to be deducted and refund applied in due course in such cases.


Question 3:- It is stated that 15H form is concessional for individuals aged 65 or more as this form, unlike 15G form, does not carry the restrictive declaration to the effect that the aggregate of eligible incomes will not exceed the maximum amount which is chargeable to income tax (Item No. 4 in 15G form) :

i). Can it be interpreted, that there is no ceiling on the aggregate incomes/ amounts liable for tax deduction for senior citizens of the age of 65 or more?

 ii). It should be “not exceeding the maximum exemption limit” and not “not exceeding the minimum exemption limit”.

 iii). Form No. 15H in circulation at present states that the particulars of the amounts are as per the schedule below. But there is no such schedule at all. The one and only schedule is about “investments”. Of course, Form 15G carries this Schedule as “Schedule V”.

 iv). Item 2 in Form 15H reads as “that my present occupation is….” At 65 and above, many have no occupations at all.

Answers 3 :

As regards the first point, the limit for tax deduction for others is inapplicable for senior citizens, but the limit for statutory deduction under Sec. 80-C, for example, is applicable.

The second point made by him is correct.

As for the third point, the omission pointed out in Form 15H, the schedule for withdrawal from NSS alone has been given, because the other schedules as in Form 15G have apparently been considered unnecessary, since there is no ceiling by way of limit for tax deduction at source, so as to require the split up of the different incomes.

The fourth point made is that the Form 15-H contemplates occupation for everyone. It is really not a defect, since a person without occupation can alsol fill up the column as nil.


Question 4:  What should I do if I am not liable to pay tax and TDS is not required to be deducted?

Answer 4 :- To avail the benefit of deduction of tax at source at Nil/lower rate, you may submit any of the following documentation :

    * Certificate from the Indian tax authorities: Certificate under section 197 of the Act issued by the Assessing Officer for nil / concessional rate of TDS can be submitted by any bondholder including companies and firms. The certificate should be submitted by the deductee to the deductor.
    *

    * Form 15G: If you are a resident person (other than a company, Co-operative society or a firm), you can submit Form 15G in duplicate to deductor. As per the provisions of section 197A of the Act, Form 15G can be submitted provided the tax on your estimated total income for the financial year computed in accordance with the provisions of the Act is NIL  and the interest paid or payable to you does not exceed the maximum amount which is not chargeable to tax.
    *

    * Form 15H: If you are a senior citizen, i.e. if you are of the age of 65 years and above at any point of time during the financial year, you can submit Form 15H even if your income exceeds Rs.240,000 p.a. for the purposes of non-deduction of tax at source if your estimated total income for the financial year computed in accordance with the provisions of the Act is NIL.
    *

    * Entities exempt from tax as per CBDT Circular : For certain specified entities whose income is unconditionally exempt under section 10 of the Act and who are statutorily not required to file return of income as per section 139 of the Act, CBDT has vide Circular no.4/2002 dated July 16, 2002, granted blanket TDS exemption. Some examples of the specified entities are provident funds, gratuity funds, local authority, hospitals exempt under section 10(23C)(iiiac), educational institutions or university exempt under section 10(23C)(iiiab).
    *

    * Exemption for insurance companies: Certain entities such as Life Insurance Corporation of India, General insurance Corporation of India along with its four subsidiaries or any other insurer are eligible to receive interest on securities without deduction of tax at source, if such securities are owned by them or it has full beneficial interest in the same.
    *

    *


Question 5:- I am an account holder in a nationalised bank and I filed Form 15H. The bank authorities refused to give acknowledgment for the same, though I have given it in duplicate. What is more is that they have deducted tax though I have no taxable income. What is the remedy for the amount already deducted and to avoid such deduction in future?

Answer 5:- Where tax has already been deducted and deposited by the bank, the only recourse for the assessee is to file a refund claim along with the return with the assessing officer and await the refund. It is possible for an assessee to seek remedy for deficiency of service in a consumer forum or to file a complaint with the Ombudsman asking for compensation for the trouble to which the reader has been put to. But then, the reader had failed to press for an acknowledgment. He should have complained about denial of acknowledgment at that stage to the concerned superior officers or should have sent it by registered post acknowledgment due for purposes of evidence for his case. In fact, it is not open to the bank official to refuse acceptance of any document sought to be served on the bank or refuse acknowledgment, where demanded.

Some of the taxpayers have complained us about the inordinate delay in getting TDS certificate to enable claim of refund in time. Such complaints received from time to time indicate the inordinate delay on the part of even banks and large corporate as regards this statutory duty to issue such certificates promptly. In the case of banks, this is again a matter on which complaint should be made to senior officers of banks in writing and on failure of response to the Ombudsman. A complaint to the TDS section of the Income-tax Department, which is expected to enforce law regarding issue of TDS certificates promptly, should be the most effective remedy, if only the TDS cell activates itself to enforce the law and the rules on those responsible for tax deduction at source for the benefit of the taxpayers.

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Calander for the Year 2011

Hello Friends,

Here is the Calander for the year 2011. You can change the year as you want to see for the year calander.

Download free Income Tax Forms

Friends

PARTICULARS	FORM NO.	FORMAT/ DOWNLOAD
Audit report under section 44AB of the Income-tax Act, 1961 in a case where the accounts of the business or profession of a person have been audited under any other law	Form 3CA	Excel Format
Audit report under section 44AB of the Income-tax Act, 1961, in the case of a person referred to in clause (b) of sub-rule (1) of rule 6G	Form 3CB	Excel Format
Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961 (Revised)	Form 3CD (For A.Y. 2009-10)	Excel Format
Information to be furnished under sub section 6 of section 195 of the Income Tax Act 1961 relating to remittance of payments to a non resident or to a foreign company	15CA	Word Format
Certificate of an accountant for determining the rate of deduction of tax at source as per provisions of sub-section (6) of section 195	15CB	Word Format Excel Format
Declaration to be filed by the assessee claiming deduction under section 80GG	Form 10BA	Excel Format
Form for evidence of payment of securities transaction tax on transactions entered in a recognised stock exchange	Form 10DB	Excel Format
Form for evidence of payment of securities transaction tax on transactions of sale of unit of equity oriented fund to the Mutual Fund	Form 10DC	Excel Format
Form for evidence of payment of securities transaction tax on transactions of sale of units of equity oriented fund to the Mutual Fund	Form 10E	Excel Format
Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax	Form 15G	Excel Format
Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual who is of the age of sixty-five years or more claiming certain receipts without deduction of tax	Form 15H	Excel Format
Declaration for non-deduction of tax at source to be furnished to contractor under the second proviso to clause (i) of sub-section (3) of section 194C by sub-contractor not owning more than two heavy goods carriages/trucks	Form 15I	Excel Format
Particulars to be furnished by the Contractor under the third proviso to clause (i) of sub-section (3) of section 194C	Form 15J	Excel Format
Claim for refund of tax	Form 30 (Revised)	Excel Format
Application for allotment of Permanent Account Number under section 139A of the Income-tax Act, 1961	49A	Fillable in PDF Format Excel Format
Form of application for allotment of Tax Deduction Account Number under section 203A and Tax Collection Account Number under section 206CA of the Income-tax Act, 1961	49B	Excel Format
Form for Changes or Correction in TAN data for TAN allotted under Section 203A of the Income Tax Act, 1961	TAN Correction Form	PDF FORMAT
Request For New PAN Card Or / And Changes Or Correction in PAN Data	PAN Correction Form	PDF FORMAT
Challan form for depositing Income Tax	ITNS 280	Excel Format
Challan Form for depositing Tax Deducted at Source (TDS) or Tax Collected at Source (TCS)	ITNS 281	Excel Format
Challan form for depositing Securities Transaction Tax or Hotel Receipt Tax or Expenditure/Other Tax or Estate Duty or Wealth Tax or Gift Tax	ITNS 282	Excel Format
Challan Form for depositing Banking Cash Transaction Tax or Fringe Benefits Tax	ITNS 283	Excel Format
New amended Form No. 27D -  TCS Certificate	Form 27D	Excel Format
New amended Form No. 24C – New Form Introduced for TDS & TCS Compliance Statement	Form 24C	PDF Format

Form 16	Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source on Salary applicable from 01.04.2010 (Revised as per Notification No. 41/2010 dated 31/05/2010)	Download PDF Download Excel
Annexure A to Form 16	Details Of Tax Deducted And Deposited In The Central Government Account Through Book Entry (As per notification No. 41/2010 dated 31/05/2010 applicable from 01.04.2010 to Government Employees)	Download Download Excel
Annexure B to Form16	Details Of Tax Deducted And Deposited In The Central Government Account Through Challan Entry (As per notification No. 41/2010 dated 31/05/2010 applicable from 01.04.2010 to Government Employees)	Download Download Excel
Form 16A	Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source (As per notification No. 41/2010 dated 31/05/2010 Revised from 01.04.2010 to Government Employees)	Download Download 2
Form 24G	TDS/TCS Book Adjustment Statement (As per notification No. 41/2010 dated 31/05/2010 applicable from 01.04.2010 to Government Deductees)	Download
Form 27D	Certificate under section 206C of the Income-tax Act, 1961 for Tax collected at source applicable from 01.04.2010 (Revised as per Notification No. 41/2010 dated 31/05/2010)	Download
Form 16	Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source from income chargeable under the head “Salaries” (Revised as per Notification No. 9/2010 dated 18/02/2010)	Download
Form 16 A	Certificate of tax deducted at source under section 203 of the Income-tax Act, 1961 (Revised as per Notification No. 9/2010 dated 18/02/2010)	Download
Form 16 AA	Certificate of tax deducted at source under section 203 of the Income-tax Act, 1961 (As per Notification No. 9/2010 dated 18/02/2010)	Download
Annexure I – Form 24Q	DEDUCTEE WISE BREAK-UP OF TDS (As per Notification No. 9/2010 dated 18/02/2010)	Download
Annexure – Form 26Q	DEDUCTEE WISE BREAK-UP OF TDS (As per Notification No. 9/2010 dated 18/02/2010)	Download
Form 27D	Certificate of collection of tax at source under sub-section (5) of section 206C of the Income-tax Act, 1961 (As per Notification No. 9/2010 dated 18/02/2010)	Download
Form 16	Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source from income chargeable under the head “Salaries” (Revised as per Notification No. 31/2009 dated 25/03/2009)	Download PDF Format
Form 16 A	Certificate of tax deducted at source under section 203 of the Income-tax Act, 1961 (Revised as per Notification No. 31/2009 dated 25/03/2009)	Download PDF Format
Form 17	Challan for Payment of TDS / TCS (As per Notification No. 31/2009 dated 25/03/2009)	Download

All about deduction under section 80C and tax planning

Friends,

Financial Year 2010-11 is going to be ended on 31st March 2011. Every one is planning to save tax. Here are details How and where one can invest to save tax :-

Background for Section 80C of the Income Tax Act (India) / What are eligible investments for Section 80C:

Section 80C replaced the existing Section 88 with more or less the same investment mix available in Section 88.  The new section 80C has become effective w.e.f. 1st April, 2006.  Even the section 80CCC on pension scheme contributions was merged with the above 80C.  However, this new section has allowed a major change in the method of providing the tax benefit.  Section 80C of the Income Tax Act allows certain investments and expenditure to be tax-exempt.  One must plan investments well and spread it out across the various instruments specified under this section to avail maximum tax benefit. Unlike Section 88, there are no sub-limits and is irrespective of how much you earn and under which tax bracket you fall.

The total limit under this section is Rs 1 lakh. Included under this heading are many small savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums and investment in specified government infrastructure bonds are also eligible for deduction under Section 80C

Most of the Income Tax payee try to save tax by saving under Section 80C of the Income Tax Act.  However, it is important to know the Section in toto so that one can make best use of the options available for exemption under income tax Act.   One important point to note here is that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions.

Besides these investments, the payments towards the principal amount of your home loan are also eligible for an income deduction. Education expense of children is increasing by the day. Under this section, there is provision that makes payments towards the education fees for children eligible for an income deduction

Sec 80C of the Income Tax Act is the section that deals with these tax breaks. It states that qualifying investments, up to a maximum of Rs. 1 Lakh, are deductible from your income. This means that your income gets reduced by this investment amount (up to Rs. 1 Lakh), and you end up paying no tax on it at all!

This benefit is available to everyone, irrespective of their income levels. Thus, if you are in the highest tax bracket of 30%, and you invest the full Rs. 1 Lakh, you save tax of Rs. 30,000. Isn’t this great? So, let’s understand the qualifying investments first.

Qualifying Investments

Provident Fund (PF) & Voluntary Provident Fund (VPF: PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.

Public Provident Fund (PPF): Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 70,000. A point worth noting is that interest rate is assured but not fixed.

Life Insurance Premiums: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.

Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.

Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.

Stamp Duty and Registration Charges for a home: The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

National Savings Certificate (NSC): National Savings Certificate (NSC) is a 6-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is eight per cent compounded half-yearly, i.e., the effective annual rate of interest is 8.16%. If you invest Rs 1,000, it becomes Rs 1601 after six years. The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.

Pension Funds – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it maeans that the total deduction available for 80CCC and 80C is Rs. 1 Lakh.This also means that your investment in pension funds upto Rs. 1 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed Rs. 1 Lakh.

5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.

5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per cent rate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.

NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.

Unit linked Insurance Plan : ULIP stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments.They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.

Others: Apart form the major avenues listed above, there are some other things, like children’s education expense (for which you need receipts), that can be claimed as deductions under Sec 80C.

So, where should you invest?

Like most other things in personal finance, the answer varies from person to person. But the following can be the broad principles:

Provident Fund: This is deducted compulsorily, and there is no running away from it! So, this has to be the first. Also, apart from saving tax now, it builds a long term, tax-free retirement corpus for you.

Home Loan Principal: If you are paying the EMI for a home loan, this one is automatic too! So, it comes as a close second.

Life Insurance Premiums: Every earning person having dependents should have adequate life insurance coverage. (For more on this, please read “Life after life – Why you should buy Life Insurance”) Therefore, life insurance premium payments are the next.

Voluntary Provident Fund (VPF) / Public Provident Fund (PPF): If you think that the PF being deducted from your salary is not enough, you should invest some more in VPF, or in PPF.

Equity Linked Savings Scheme (ELSS): After the above, if you have not reached the limit of Rs. 1,00,000, then you should invest the remaining amount in Equity Linked Savings Scheme (ELSS).

Equities provide the best, inflation-beating return in the long term, and should be a part of everyone’s portfolio. After all, what can be better than something that gives great return and helps save tax at the same time?

When to Invest?

Many of us start looking for investment avenues only in February or March, just before the Financial Year is getting over. This is a big mistake! One, you would end up investing your money without putting proper thought to it. And secondly, you would end up losing the interest / appreciation for the whole year. Instead, decide where you want to make the investments, and start investing right from the beginning of the financial year – from April. This way, you would not only make informed decisions, but would also earn the interest for the full year from April to March.

Tags: 1 lakh, education fees, eligible investments, government infrastructure, Home Loan, income tax act, income tax act india, infrastructure bonds, investment mix, life insurance premiums, maximum tax, nsc, pension scheme, PPF, tax benefit, tax bracket, tax exemptions

80CCF INFRASTRUCTURE BONDS :FAQ

Friends,

Are you planning to invest in Infrastructure Bonds u/s 80 CCF to save tax. Then there will be some questions in your mind like  as given under with solutions :-

Frequently Asked Questions on Infrastructure Bonds (FAQs)

What is the Tax Treatment of interest on these Bonds?


    * The interest received on these bonds shall be treated as income from any other source and shall form part of the total income of the assessee in that financial year in which they are received.


Who are the eligible investors?


    * Only Resident Indian Individuals (Major) and HUF can invest in these bonds.


Can a Minor apply for subscription to these bonds?


    * A minor is not eligible to apply for subscription to these bonds.


Are these infrastructure bonds Tax Free?


    * No, the interest received in these bonds is not tax free. The investor is liable to pay tax on the interest received


Will TDS be deducted on these bonds?


    * No TDS shall be deducted on the interest received as these bonds are issued Compulsorily in Demat mode and shall be listed on NSE & BSE.


I don't have Demat Account. Can I apply?


    * YES,But it is dependent on issuer if he allowed to so .Normally all issues have both options


I only have a joint De-mat account. Can I apply in my own name only?


    * The name of applicant shall be same as the holders of Demat account. In case of single applicant the demat account shall also be held in the name of the same single applicant.(physical form is also allowed now)


Can I apply in joint names?


    * Yes application can be made in joint names with a maximum of three applicants, however the demat account shall also be held in the joint names and order of applicant shall be the same as appearing in the demat account. In case of application made in joint names, the tax benefit shall only be availed by the first applicant.


What is the maximum amount for which the benefit u/s 80CCF be availed?


    * Maximum benefit to an investor shall be Rs. 20,000/-- under section 80CCF of the Income Tax Act, 1942


What would happen if I apply amount more than Rs. 20,000/-?


    * The allotment shall be made for the sum applied, however the benefit under section 80CCF may only be availed for a maximum sum of Rs.20,000/-


Can I invest in all the four option?


    * Yes an applicant may subscribe to all the four options but the minimum application under each option shall be one bond i.e. Rs.5000/-


What is the benefit of investing in Tax Saving Infrastructure Bonds if they offer the same tax benefit?


    * The Tax exemption benefit under Sec 80CCF on a sum of Rs. 20,000/- is over and above Rs. 1,00,000/- benefit under section 80C, 80CCC and 80CCD


What is the tenure & lock-in period of these Tax Free Infrastructure Bonds?


    * The Tenure of these bonds shall be 10 years and the bonds have a lock-in of 5 years


Who can offer these Long Term Infrastructure Bonds?


    * The entities like LlC, IDFC, IFCI and other NBFCs which are classified as Infrastructure Finance Companies by RBI shall be allowed to issue these long term infrastructure bonds.


I Don't have a PAN card. Can I still apply for subscription?


    * PAN card is mandatory for subscribing to these bonds.


How will i get my interest on the due date?


    * The interest shall be credited to the respective Bank account registered with the Demat account through ECS on the due date for interest payment, and -if the due date is a public holiday then the next working date.


Can I get loan on these bonds?


    * You cannot avail of any loan pledging these bonds in the first 5 years. Thereafter, these bonds may be pleadged to avail of loans


Where shall I submit the application forms?


    * The application form may be submitted at the branches collecting banks whose addresses are mentioned on the application forms.



Who would get the interest in case of the joint application?


    * In case of joint application the interest shall be paid to the account of the first applicant only.



Can Intercity clearing cheques acceptable?


    * No, cheques has to be payable at par or local clearing cheques are only allowed.


In whose favour the cheque is to be made?


    * Cheques has to be made in the favour of "IDFC Infra Bonds"


Can Intercity clearing cheques acceptable?


    * No, cheques has to be payable at par or local clearing cheques are only allowed.


Can I accept NRI application?


    * No NRI's are not allowed to invest in this issue. Please check, NRIs on non-repatriate basis can apply ?


Shall I also submit the application forms with the collection Bank?


    * Yes


Can I accept Minor applications?


    * Minors are not allowed to invest in this Issue. So minor application even accompanied by Guardian is not acceptable.

Guidelines for filling Form 15CA Online

Guidelines for Part A of Form 15CA:

a.      Remitter:

                             i.            Permanent Account Number (PAN) and Tax Deduction and collection Account Number (TAN) allotted by the Income Tax Department should be mentioned. TAN is mandatory in cases where-

a.      tax has been deducted or will be deducted at source;

b.      the remitter has obtained an order under section 195 (2) of the Income-tax Act from the Assessing Officer.

                          ii.            In case an invalid PAN and/or TAN is filled in by the remitter, the Form will not be generated.

                        iii.            In case the remitter does not have a TAN, it is mandatory to quote PAN of the remitter.

                        iv.            PAN of the remitter should invariably be given. However, the same is mandatory if status of entity is Company or Firm. If PAN is not given in such cases, the remitter will not be allowed to generate the Form.

                           v.            Details in at least two address fields for remitter should be mentioned.

                        vi.            Name of the entity should be mentioned in the “Name of remitter” field.

                      vii.            No value is to be provided in Area code, AO type, Range code & AO number. The fields will be entered by the system after validating the PAN and/or TAN.

                   viii.            Email id and mobile no., if any, should be provided.

b.     Recipient of remittance: 

                             i.            Complete address of recipient of remittance, separated by coma, should be provided.

                          ii.            PAN, allotted by the Indian Income Tax Department should be mentioned.

                        iii.            If status of entity is “company”, then provide type of company i.e., “domestic” or “other than domestic”.

                        iv.            In the field “Principal Place of Business”, the country of tax residence of the recipient of the remittance should be mentioned. 

c.       Information for accountant

                             i.            Enter name of the Chartered Accountant in the field “Name of the accountant”.

                          ii.            Details in at least two address fields should be mentioned.

                        iii.            Date of certificate should not be a future date.

                        iv.            Registration no. should be numeric.

                           v.            Details of accountant are not required if point no. 15 is selected i.e. any order u/s 195 (2)/ 195 (3)/ 197 of the Income-tax Act has been obtained from Assessing Officer.

                        vi.            Certificate number is an alphanumeric field. 

2.       Guidelines for PART B of the Form (Particulars of Remittance and TDS)

                             i.            Provide the values as per the accountant certificate obtained in Form 15CB.

                          ii.            In case name of the country is not available in drop down list, select value “other” from the drop down and provide name of the country.

                        iii.            In case currency name is not available in drop down then select value ”other” from the drop down and provide name of the currency.

                        iv.            Proposed date of remittance should be current date or a future date.

                           v.            Amount of TDS should be less than amount of remittance.

                        vi.            Actual amount of remittance after TDS should be less than amount of remittance.

                      vii.            BSR code of the bank through which the remittance is made should be mentioned.

                   viii.            Rate of TDS as per DTAA (if applicable) should be mentioned upto two decimal places.

                         ix.            Amount should be mentioned upto 2 decimal places.

                           x.            Select any one out of fields 12, 13, 14 and 16. One form is to be filled for one type of remittance.

                         xi.            Details of “responsible person” should be mentioned for verification.

                      xii.            If no tax has been deducted then value “0.00” should be mentioned in “Amount of TDS” field (foreign currency and Indian Rs.)

                    xiii.            Value for “rate of deduction as per the Income-tax Act” should be “0.00” if no tax has been deducted and “amount of TDS in Indian and foreign currency” should be “0.00”.

3.      Generation of Form 15CA

                             i.            After filling up the information, click “submit”. On submission of details if system shows any errors, rectify and re-submit the form.

                          ii.            A confirmation screen with all the data filled by the user will be displayed. The same can be either confirmed or edited.

                        iii.            On confirmation, a filled up Form 15CA with an acknowledgment number will be displayed. Print out of the Form should be taken, signed and submitted prior to remitting the payment.

                        iv.            Form 15CA can be re-printed by selecting the re-print option. For re-printing, please enter “acknowledgment no.”, “PAN” and/or “TAN” mentioned in the Form.