REJECTION OF ETDS CORRECTION RETURN -REASON & REMEDIAL ACTION

Friends,

Unlike E tds regular return there are many cases when revised/correction etds return is rejected by TIN by one or another reasons. In some cases persons are unable to find the exact cause of rejection even they have tried all method.The list of common error or rejection of ETDS revised return is given as under for your ready reference along with remedial action.I hope after reading these solutions ,we may taste success in our next attempts .Best of Luck .Happy e filing etds return.

Sr.No.	Error description	Explanation	Course of action
1	Assessment Year of the statement cannot be updated	Fields such as TAN, Form No, FY/AY and Quarter of a statement cannot be rectified by filing a correction statement	Do not update mandatory fields by filing a correction statement. Deductor should ensure that correct details corresponding to the regular statement for which correction statement is being filed are provided in the mandatory fields while filing a correction statement
2	Bank BSR code of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank.	Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as 'Booked' and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is 'Booked' no corrections in the challan details are allowed	Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan
3	Bank Challan Number of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank.	Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as 'Booked' and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is 'Booked' no corrections in the challan details are allowed	Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan
4	Book Cash Entry of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank.	Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as 'Booked' and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is 'Booked' no corrections in the challan details are allowed	Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan
5	Correction cannot be made as deductee for which updation/deletion is required has been already cancelled by Correction statement.	Record from the original statement for which correction is being made has already been deleted, hence correction cannot be applied	Deductor should ensure that the record being updated vide correction statement is present in the TIN central system and not deleted vide earlier correction
6	Correction cannot be made as statement has been cancelled	Original statement for which correction has been filed has already been cancelled, hence correction cannot be applied	Deductor should ensure that the regular statement on which correction statement is filed is present in the TIN central system and not deleted/cancelled vide earlier correction. Deductor should check the status of the regular statement filed before filing any correction statement
7	Correction in Salary details is not applicable, as corresponding salary detail record is cancelled by filing correction statement filed earlier.	Record from the original statement for which correction is being made has already been deleted, hence correction cannot be applied	Deductor should ensure that the record being updated vide correction statement is present in the TIN central system and not deleted vide earlier correction
8	Date of Transfer Voucher/ Bank Challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank.	Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as 'Booked' and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is 'Booked' no corrections in the challan details are allowed	Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan
9	Deductee details with same record number is available in TIN Central System	Sequence of challan/salary/deductee detail record being added in a correction statement should follow from the last sequence no for the said record in the original statement.	Deductor should ensure correct sequence number of the challan/deductee details being added vide the correction statement. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement
10	Either Previous Provisional Receipt No. provided is incorrect or combination of Original Provisional Receipt No. and Previous Provisional Receipt No. is not in sequence	Value in the field Previous provisional receipt no. (PRN) should be the PRN of last correction statement accepted at TIN. In case of the first correction being filed, he previous PRN should be the PRN of original statement	Deductor should ensure that 1) the value in the field 'Original Provisional receipt number' should be that of the corresponding regular statement for which correction is being filed 2) the value in the field 'Previous Provisional receipt number' should be that of the last accepted statement corresponding to the regular statement for which correction statement is being filed; i.e. in case of first correction, PRN of the regular statement should be provided in both the fields. In case of subsequent correction, PRN of last accepted correction statement should be provided in the field 'Previous PRN'
11	File type of Regular and Correction file should be same (i.e. either both of them should be electronic or both of them should be Paper)	If regular statement is in electronic, then corresponding correction should also be in electronic form If regular statement is in paper form, then corresponding correction should also be in paper form	Deductor should ensure that the Provisional receipt number of the regular statement corresponding to the correction being made is quoted correctly in the correction statement
12	For addition of challan details, Challan detail record number should be the next number of challan detail record number mentioned in last regular/correction statement.	Sequence of challan/salary/deductee detail record being added in a correction statement should follow from the last sequence no for the said record in the original statement.	Deductor should ensure correct sequence number of the challan/deductee details being added vide the correction statement. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement
13	For addition of salary details, salary detail record number should be the next number of salary detail record number mentioned in last regular/correction statement.	Sequence of challan/salary/deductee detail record being added in a correction statement should follow from the last sequence no for the said record in the original statement.	Deductor should ensure correct sequence number of the challan/deductee details being added vide the correction statement. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement

50 Paise Coins Min Acceptable ,Coin up to 25 paisa will be called in:30.06.2011

Friends,

Coming June 30, 50 paise will be the minimum coin accepted in the markets as all denominations below it will cease to be legal currency. Government Calls in from Circulation Coins of Denomination of 25 Paise and below,The Central Government, Ministry of Finance has notified on December 20, 2010 to call in from circulation the coins of denomination of 25 paise and below, issued from time to time, with effect from June 30, 2011. From this date, these coins shall cease to be a legal tender for payment as well as on account. The procedure for call in shall be notified separately by the Reserve Bank of India.



Consequently, from June 30, 2011 onwards these coins will not be accepted in transactions. The minimum denomination coin acceptable for transaction will be 50 paise from that date. Also, in accounting, i.e. the entries in books of accounts, pricing of products/services/taxes shall also be rounded off to 50 paise or whole rupee from that date.

The notification was issued in exercise of the powers conferred by sub-section 15A of the Coinage Act, 1906 (3 of 1906).

Which ITR is applicable for my Income?

The most of the confusion about income tax forms after Saral (Old Form) is choosing income tax form / ITR for one’s income. For example Suppose one has income from salary and interest income from banks. The form ITR1 will be used, but if having income from capital gain along with salary income then ITR2 will be used. So it is very important to learn how to choose appropriate ITRs / Income Tax Forms to file Income Tax Return. I have given instruction “which ITR form to use” one by one form starting from ITR1.

Form ITR1

ITR 1 is the basically for those

Persons

    * Individuals

Income

   1. Income From Salary / Pension
   2. Income From Other Sources: Interest / Family Pension

So, ITR 1 is not for one who has

    * Having Income from Capital Gain.
    * Having Income From House Property (e.g. Rented out the Property)
    * Having Income From Business & Profession.

Form ITR2

ITR-2 is for those

Persons:

    * Individuals
    * HUF (Hindu Undivided Family)

Having Income From

    * Salary / Pension / Family Pension
    * Interest
    * House Property
    * Capital Gains

So ITR-2 is for those who has salary income with Capital Gain or house Property Income or if only capital gain or house property income.


ITR2 is not for those if having income from

    * Business & Profession.
    * if only salary/ Pension / Family income

Form ITR-3
ITR3 is for those

Persons

    * partner in a firm
    * behalf of an HUF that is a partner in a firm


Form ITR-4

Form ITR-4 is for those

Persons:

    * Individuals
    * HUFs (Hindu Undivided Family)

Income:

    * Income from proprietary business or profession.


The Below table is provided by income tax department for “which Form is applicable for one’s income?”

Which Form is Applicable

S.No For Þ Individual Individual, HUF Source of Income ß ITR-1 ITR-2 ITR-3 ITR-4 1 Income from Salary/Pension • • • • 2 Income from Other Sources (only Interest Income or Family Pension) • • • • 3 Income/Loss from Other Sources • • • 4 Income/Loss from House Property • • • 5 Capital Gains/Loss on sale of investments/property • • • 6 Partner in a Partnership Firm • • 7 Income from Proprietary Business/Profession •

PAN CARD

PAN CARD

TDS Rates for F.Y. 2010-11, A.Y. 2011-12 After all Amendments

Friends,

TDS Rates: The below given chart is about TDS Rates for f.y.2010-11, a.y. 2011-12 i.e from 1-4-2010 to 31-03-2011. The below give TDS after all amendments done by the CBDT notifications and circulars. The TDS rates chart has mentioned for all payment and about payee status to deduct TDS accordingly.
 

TDS Rates Chart

Rates of TDS for major nature of payments for the Financial Year 2010-11
Particulars				Rates from 1.4.10 to 31.03.2011
Section	Nature of Payment	Criteria for Deduction (payment in excess of) upto 30th June 2010	Criteria for Deduction (payment in excess of) w.e.f. 1st July 2010	If the recipient is a Company, Co- operative Society, Firm	If recipient is an Indivudual or HUF
194 A	Interest from a Banking Company	Rs.10,000/- p.a	Rs.10,000/- p.a	10.00	10.00
194 A	Interest other than from a Banking Co.	Rs.5,000/- p.a	Rs.5,000/- p.a	10.00	10.00
194 C	Contractors	Rs.20,000/- per contract or Rs.50,000/- p.a	Rs.30,000/- per contract or Rs.75,000/- p.a	2.00*	1.00*
194 H	Commission or Brokerage	Rs.2500/- p.a	Rs.5,000/- p.a	10.00	10.00
194 I	Rent other than Plant, Mach.& Eqp.	Rs.1,20,000/- p.a	Rs.1,80,000/- p.a	10.00	10.00
194 I	Rent of Plant , Machinery & Equipments	Rs.1,20,000/- p.a	Rs.1,80,000/- p.a	2.00	2.00
194 J	Professional Charges	Rs.20,000/- p.a	Rs.30,000/- p.a	10.00	10.00

* No tax is to be deducted in the case the Contractor is in transport business and PAN is Quoted by him

*Interest of late deposit of TDS is proposed to be increased from 12% p.a to 18% p.a effective from 1st July 2010. Notes: (1) Due date of payments is as under:

(a) Credit/Paid in the month of March – 30th April

(b) Any other case – On or before 7 days from the end of the month in which deduction is made.

(2) With effect from 1st April 2010, in case the receiver of the sum does not have PAN, then the deduction has to be made @ 20% or higher rate

TDS Amendments Applicable for A.Y. 2011-12 (Summary)

Friends,

Most of the readers are muddled since of past amendment of TDS like, UTN, 24C and changes in TDS Returns, etc. But don’t be confused over it, Read the below composition cautiously to know the most recent applicable rules of TDS Procedures.

UTN/24C has dead

The latest ‘Notification no. 9/2010 dt. 18/02/2010′ makes ‘UTN/24C/’  dead. Now the Procedure and the forms ‘Form 16/16A’ of TDS will be same as earlier.  So don’t be confused over it, forget ‘UTN/24C now’ and download ‘form 16/Form 16A’ in excel and PDF format.
 

20% TDS without PAN:
The most significant amendment is “20% TDS without PAN”. In other words if deductee will not provide PAN number on date of TDS deduct, deductor will deduct TDS @ 20% with effect from April 1, 2010. See “20% TDS if NO PAN” and “NO PAN means More Pain” to know more.
 

Threshold Limit of TDS Changed

In order to adjust the inflation and also to reduce the compliance burden of deductors and taxpayers, it is proposed to raise the threshold limit for payments mentioned in sections 194B, 194BB, 194C, 194D, 194H, 194-I and 194J . The amendment is applicable with effect from July 1, 2010 (subject to approval of Finance bill). See: Changed Threshold Limit of TDS w.e.f. 1/07/2010.
 

Notices to deductors u/s 201(1)

IT Department will now issue the notice to the deductors who has paid short payment of TDS and interest. It will all be done under section  201(1) of the income tax act. If you have received any notice under this section, you must peruse this article and ask your question here to eliminate your confusion in this regard.

INVEST IN IFCI INFRA BONDS U/S 80CCF-SAVE TAX BEFORE 31ST DECEMBER

Friends,

Private placement of IFCI Long Term Infrastructure Bonds of face value of Rs.5000 each in the nature of Unsecured, Redeemable,Non-Convertible Bonds Series II having benefits under Section 80 CCF of the Income Tax Act, 1961 aggregating to Rs. 100 Crore with a green-shoe option to retain over-subscription for issuance of additional Infrastructure Bonds.
Know more about infra bonds and section 80CCF read Faq from link given below
INFRABONDS FAQ 80CCF

SUMMARY TERM SHEET

Issuer IFCI Limited ("the Issuer") Offering 2,00,000 Unsecured, Redeemable, Non-Convertible Bonds of Rs. 5,000/- each aggregating to Rs. 100 Crore with a green-shoe option to retain over-subscription for issuance of additional Infrastructure Bonds Type Private Placement basis Instrument Unsecured, Redeemable, Non-Convertible Bonds Series II having benefits under section 80 CCF of the Income Tax, 1961 for long term Infrastructure Bonds Rating BWR AA- by BRICKWORK RATINGS INDIA PVT LIMITED Eligible Investors Resident Indian Individual (Major) and HUF through Karta of the HUF Security Unsecured Face Value Rs.  5,000/- per bond Issue Price At par (Rs. 5,000/- per bond) Minimum Subscription 1 Bond and in multiples of 1 Bond thereafter, Tenure 10 years, with or without buyback option after five years Options for Subscription The Bonds are offered under the following 4 options- • Option I - Non-cumulative and Buyback after 5 years • Option II - Cumulative and Buyback after 5 years • Option III - Non-cumulative and no Buyback • Option IV - Cumulative and no Buyback Redemption / Maturity At par at the end of 10 years from the deemed date of allotment. For Cumulative Option, at par with cumulated interest thereon. Coupon rate • Option I & II - 8% p.a. • Option III & IV - 8.25% p.a. Option II and Option IV will have cumulative payment at the end of the Buyback period or 10 years, as per the option opted by the Investor. Listing Proposed to be listed on BSE Trustee Axis Trustee Services Limited Depository National Securities Depository Ltd. and Central Depository Services (India) Ltd. Registrars Beetal Financial & Computer Services (P) Ltd. Mode of Payment Interest payment will be made through ECS/At Par Cheques/Demand Drafts Issuance Demat form. But, investors interested for physical form may provide a cancelled cheque, self-certified copies of PAN Card and residential proof Trading Demat mode only following expiry of lock-in period Issue Open Date November 16, 2010 Issue Close Date December 31, 2010 • The issuer would have the right to pre-close the issue or extend the closing date by giving 1 day notice to the Arrangers Deemed Date of Allotment January 31, 2011 Buyback dates January 31 every year commencing from year 2016 till year 2020.

PERSON WITHOUT DEMAT ACCOUNT CAN ALSO APPLY

In terms of the Information Memorandum dated November 16, 2010, IFCI shall make the Issue of Bonds in dematerialized form.However, the applicant(s) who wish to subscribe to or hold the bonds in physical form, can do so in terms of Section 8(1) of the Depositories Act, 1996. Accordingly, such applicants, who wish to subscribe to the Bonds in physical form shall undertake the following steps.

The Application Form has to be complete in all respects, by providing all the information including PAN and demographic details.However, the Depository Participant Details are not to be provided in the Application Form. The requirement for providing Depository Participant Details shall be mandatory only for the Applicants who wish to subscribe to the Bonds in dematerialized

form.

(i) The following documents shall be provided along with the Application Form:

(a) Self-attested copy of the PAN card;

(b) Self attested copy of the proof of residence. Any of the following documents shall be considered as a verifiable

proof of residence:

• - Ration card issued by the Government Authority; or
• - Valid driving license issued by any transport authority of the Republic of India; or
• - Electricity bill (not older than 3 months); or
• - Landline telephone bill (not older than 3 months); or
• - Valid passport issued by the Government of India; or
• - Voter’s Identity Card issued by the Government of India; or
• - Passbook or latest bank statement issued by a bank operating in India; or

(c) Self attested copy of a cancelled cheque of the bank account of the applicant to which the amounts pertaining to payment of refunds, interest and redemption, as applicable, should be credited.

The applicant shall be responsible for providing the above information accurately. Delays or failure in credit of the payments due to inaccurate details shall be at the sole risk of the Applicants and neither the Arrangers/Registrar & Transfer Agents nor the Company shall have any responsibility and undertake any liability for the same.

The applications of the applicants who wish to subscribe for the Bonds in physical form, which are not

accompanied with the aforestated documents may be rejected at the sole discretion of the Company.

In relation to the issuance of the Bonds in physical form, please note the following:

1. (i) An Applicant has the option to seek Allotment of Bonds in either electronic or physical mode. No partial Application for the Bonds shall be permitted and is liable to be rejected.
2. (ii) In case of Bonds that are being issued in physical form, the Company will issue one certificate to the Bondholder for the aggregate amount of the Bonds that are applied for (each such certificate a ‘Consolidated Bond Certificate’).
3. (iii) Any Applicant who provides the Depository Participant Details in the Application Form shall be allotted the Bonds in dematerialized form only. Such Applicant shall not be allotted the Bonds in physical form.
4. (iv) No separate Applications for issuance of the Bonds in physical and electronic form should be made. If such Applications are made, the Application for the Bonds in physical mode shall be rejected. This shall be considered as a ground for technical rejection.
5. (v) The Company shall dispatch the consolidated bond certificate to the address of the applicant provided in the application form within two working days from the date of Allotment of the Bonds.
6. (vi) Please note that in case of the Bonds are held in physical form, the withholding tax at the applicable rate would be deducted on the interest payment if such payment is in excess of Rs.2,500 in a financial year.
7. (vii) All terms and conditions disclosed in the Information Memorandum in relation to the Bonds held in physical form pursuant to rematerialisation shall be applicable to mutatis mutandis to the Bonds issued in physical form.

Concept of TCS

Friends,

We generally heard the concept TDS/TCS. But in use we generally are in touch with Tax Deduction at Source (TDS). Tax Collection at Source is a tax which is collected on sale means the seller collect tax from the buyer of specified goods in section 206C(1) in the concept TCS. The whole concept of TDS/TCS is from the income tax act Is to widen the income tax scope and to include more and more persons into tax grip.

Concept of TCS

In this concept the seller of specified goods collect tax from the buyer under the section 206C (1). This is also called TCS and full form is Tax collected at source.

Definition of buyer

Buyer is a person who buys the goods for sale. The mode of buying may be direct purchase, tender or any auction to the specified goods. But these are not covered as buyers in Tax Collected at source (TCS) Act.

- Central/State government.

- Public company.

- Embassy, High commission or representation of foreign country.

- Any club.

- Any person who buys the goods for personal consumption & not for sale.

Definition of seller

Seller of the specified goods is covered in TCS act. Seller may be

- Individual or Huf

- Firm

- Co-operative society

- Company

- State or central government

- Local authority

Specified goods

Specified goods are those goods, sale or purchase of these goods attracts TCS. There are only some of goods which attract TCS and the list of these items is as follows.

1- Alcoholic liquor for human consumption.

2- Timber

3- Tendu leaves.

4- Forest produce other than timber and Tendu leaves.

5- Scrap or waste.

Tax Rate

Rate of TCS is different from one item to other. The rate of TCS is as follows.

- Alcoholic liquor for human consumption : 1 %(One percent)

- Timber : 2.5 % (Two point five percent)

- Tendu leaves : 5 % (Five percent)

- Forest produce other than timber and Tendu leaves : 2.5 % (Two point five percent)

- Scrap or waste : 1% (One percent)

- There is also a surcharge of 10% on the rate of TCS given above.

- Educational cess @ 2% on basic surcharge.

- Secondary and Higher educational cess@1% on basic surcharge amount.

TCS Exemption

- The TCS will be zero or exempt when the buyer buys the goods for manufacturing or reproduction and not for sale.

- In this condition the buyer supplies Form 27C to the seller mentioning that he is the not a trader and will reprocess the goods which are purchased with duly stamped and signature.

- The seller needs to deliver copy of Form 27C to the commissioner of income tax.

TAN

Every person who collects tax means the seller needs to apply for TAN no. and the TAN Number should be written to all challans, Forms & certificate of TDS/TCS.

This TAN number will combine work for TDS/TCS.

The seller need to deposit the tax amount within one week from the last day of the month in which the amount received of TCS with Challan no. 281 also used for TDS. The seller also need to issue a certificate to the buyer of TCS Form 27 D which can be issued monthly or six monthly basic.

Return

The seller who collected TCS need to deposit return with Form 27EQ quarterly.

Last Minute Tax Planning

Friends,

An efficient tax planning can save you handful amount of money whereas an unstructured tax plan can cost you an additional handful amount of money. So, in light of the above statement it becomes very important to make a proper tax planning so that you might be able save a few more. Out of the planning period, the issue of last minute planning is always the most critical one as it would be the last time that you trying to save. In such context, one must remember that he ensures all possible measures. Few of such measures are listed below:

File return with the current data: In case you do not have all the required data that is required for you to file your return within the specified date, it is recommended to file the return with the same available data as on the date of filing of return and later on with adequate data a similar return can be filed in the form of revised return. This would allow you to save yourself from the penalty and prosecution that might have got attracted if anything in contrary might have taken place.

Selling of worthless stocks: Before you file your return it is recommended to sell off all your worthless stocks in form of shares or any kind of securities which does not proves to be fruitful for you, as they will only add the burden of taxation in your case. It should be remembered that minimum amount of assets will also reduce your liability of wealth tax, if any.

Claiming of depreciation under section 179: Depreciation is sure an area of focus where one can look forward to claim depreciation. Depreciation on all capital assets can be claimed and charged to P\L which will provide the double benefit of reduction n profit and as well as lesser value of assets.

Donation and charities: The best way to save our income from the hands of taxation is to provide such income in form of charity and donation. It should also be remembered that donations in areas like research and technology can offer up to 125% of deduction which can be very useful while counter balancing your extra income. Along with it, it also promotes the goodwill of your business and creates a distinct image of yours in the society.

Quick investment: a last minute quick investment can definitely cut down your tax liability in to a considerable level. Say, if you invest your income on research and development programs you can very well end up getting 125% of deduction of the amount invested. This can also lead to better utilization of existing resources and more fruitful results which can foster your business earnings.

Thus, we find that there certain very useful last minute tax planning suggestions that can very well reduce your tax liability and can allow you to save some money on legal terms which you can use according to your own pleasure and enjoyment without being tensed about it. Tax planning is the key to tax savings.

Deduction of Tax at Source – Duty of Person Deducting Tax

Friends,

Section 200 of the Income-tax Act, 1961 – Deduction of tax at source – Duty of person deducting tax – Instruction regarding parameters for processing of E-TDS Returns

INSTRUCTION NO. 8/2010 [F.NO. 275/73/2009-IT(B)], DATED 8-12-2010

In the present system of processing of e-TDS returns, the returns are processed online and mismatch report showing defaults on various accounts is generated. Based on this mismatch report, the assessing officers issue show-cause notices to the deductors and take follow up actions.

2. It has come to the notice of the Board that substantial number of TDS returns are pending where the deductee-wise default on account of short deduction of tax is less than Rs. 10.

3. This issue has been considered by the Board and it has been decided that:

(i)  where the default on account of short deduction is less than Rs.10 for each deductee, the demand is round off to zero; and

(ii)  after considering (i) above, deductor-wise demand/default, if any, of Rs.100 or less will also be ignored for further action.

4. However, the DDOs in such cases may be warned to be careful in future so as to ensure that they do not become habitual in short deduction of tax.

5. Earlier Instruction No. 11/2007, dated 18-12-2007 issued under F. No. 385/56/2007-IT(B) on the subject stands superseded by this instruction.

6. These instructions shall apply to all TCS/TDS cases under all Direct Tax Enactments. These instructions will come into force immediately.

Public Provident Fund (Amendment) Scheme, 2010

Friends,

NOTIFICATION NO. GSR 956(E), DATED 7-12-2010

In exercise of the powers conferred by sub-section (4) of section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Cen­tral Government hereby makes the following Scheme further to amend the Public Provident Fund Scheme, 1968, namely :—

1. (1) This scheme may be called the Public Provident Fund (Amendment) Scheme, 2010.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Public Provident Fund Scheme, 1968 in paragraph 9, in sub-paragraph (3), after the proviso, the following proviso shall be inserted, namely :—

“Provided further that an account opened on behalf of a Hindu Undivided Family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him. In the case of accounts opened on behalf of Hindu Undivided Family, where fifteen years from end of the year in which initial subscription was made, has already been completed, they shall also be closed at the end of the current year, i.e., the 31st day of March, 2011 and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him.”

Merry Christmas and Wishes for A Happy New Year

Friends,

Wishing You and Your family for  Christmas  and coming New Year.

★Merry★* 。 • ˚ ˚ ˛ ˚ ˛•。★Christmas★ 。* 。
° 。 ° ˛˚˛ * _Π_____*。*˚
˚ ˛ •˛•˚ */______/~＼。˚ ˚ ˛
˚ ˛ •˛• ˚ ｜ 田田 ｜門｜ ˚ ...

Documents Required to Apply for a New PAN Card

Friends,

If you want to apply for Permanent Account Number (PAN) the following documents are required :-

Apply for PAN Document acceptable as proof of identity and address as per Rule 114 of Income Tax Rules, 1962, for individual and HUF applicants Sr. No. Proof of Identity (Copy of) Proof of Address (Copy of) 1 School Leaving Certificate Electricity Bill^ 2 Matriculation Certificate Telephone Bill^ 3 Degree of recognised educational institution Employer Certificate^ 4 Depository Account Statement Depository Account Statement^ 5 Bank Account Statement / Passbook Bank Account Statement / Passbook^ 6 Credit Card Credit Card Statement^ 7 Water Bill Rent Receipt^ 8 Ration Card Ration Card 9 Property Tax Assessment Order Property Tax Assessment Order 10 Passport Passport 11 Voter Identity Card Voter Identity Card 12 Driving License Driving License 13 Certificate of identity signed by Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer. Certificate of address signed by Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer. Note :- In case of Minor, any of the above mentioned documents as proof of identity of such minor shall be deemed to be the proof of identity and address for the minor applicant. For HUF, any document in the name of Karta of HUF is required. Note : 1) Proof of Address mentioned in Sr. No. 1 to 7 (^) should not be more than six months old on the date of application. 2) Proof of Address is required for residential address mentioned in item no. 5. Document acceptable as proof of identity and address as per Rule 114 of Income Tax Rules, 1962 for other than individual and HUF applicants 1. Company Copy of Certificate of Registration issued by the Registrar of Companies. 2. Firm Copy of Certificate of Registration issued by the Registrar of Firms or copy of partnership deed. 3. Association of persons (Trust) Copy of trust deed or copy of certificate of registration number issued by Charity Commissioner. 4. Association of persons (other than Trusts) or Body of Individuals or Local authority or Artificial Judicial Person Copy of Agreement or copy of certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority or any other document originating from any Central or State Government Department establishing identity and address of such person.

Download of Form 26AS

Friends,

Form 26AS is the facility provided by the Income Tax Department to view whether Tax Deducted at Sources at various places i.e out of Salary paid by the employer, Interest paid by the Bank or likewise any other source  under your PAN has been deposited to you account or not. It's a very useful facility. Now this facility has been extended To also download the data in a text file also.

Click below to Login to your account :-

• Assessment Year wise transaction details of Form 26AS can be viewed as well as downloaded in text format by accessing ‘Form 26AS’ account. The text file containing delimited data can be downloaded with maximum transactions up to 20,000.
  
  
• The aforementioned text file contains Part wise transaction details as given below:
  • Part A: Details of Tax Deducted at Source (TDS)
  • Part B: Details of Tax Collected at Source (TCS)
  • Part C: Details of Tax Paid other than TDS or TCS.
  • Refund details: Consisting of Refund received during the AY
  
  
• For more than 20,000 transactions in a given Assessment Year, TAN wise and status wise (matching status) summary can be viewed.
• For more than 20,000 transaction in Form 26AS, transaction wise details will be provided by e-mail on request raised by PAN holder. E-mail will be send within 24 hour of request on email id provided at the time of registration.
• The e-mail will be sent part wise i.e., separate mail for Part A, Part B, Part C and Refund details. Examples of the files with file name will be as below:
  • AAAAA0000A-201011-30052010-PART-A_1-OF-1.zip
  • AAAAA0000A-201011-30052010-PART-B_1-OF-1.zip
  • AAAAA0000A-201011-30052010-PART-C_1-OF-1.zip
  • AAAAA0000A-201011-30052010-REFUND_1-OF-1.zip
• Details in the text file downloaded/e-mailed will be in the format as below:
  • Format of Form 26AS in text file download for upto 20,000 records
  • Format of Part A details in text file downloaded (Click here to download)
  • Format of Part B details in text file downloaded (Click here to download)
  • Format of Part C details in text file downloaded (Click here to download)
  • Format of Refund details in text file downloaded(Click here to download)
• In case transactions are large in numbers, , it may not be possible to incorporate it in a single file, In such case, it will be split into parts owing to restriction of email size.
• Text file is password protected. To open the TXT file please use your date of birth in case of individual PAN holder and date of incorporation for non-individual PAN holder in DDMMYYYY format.
  • Date of birth/ date of incorporation should be same as printed on PAN card.
  • Example: If your date of birth / incorporation is January 21, 1985 then the password will be 21011985.
• For extraction of files use WinZip version 9.0 and above, WinRaR version 3.90 and above and 7-Zip version 4.65 and above.

TDS Rate Doubles if You Fail to Mention Your PAN!

Friends,

TDS or Tax Deducted at Source refers to the deduction which is made by the employer while granting salary to the employee. If one looks back at the pay slip, he can very well catch a glimpse of TDS which has been deducted by his employer in course of payment of his salary. Normally, the employer is held responsible for the purpose of collection of TDS from his employees and the former is required to deposit the same with the Government within the specified time period. For cases where the question of self employment is related in form of professionals like CA, Doctor, CS, etc. they need to take care of this matter all by themselves and deposit the same with the Government within the specified time limit. The specified time limit in such cases can very well be extended in both the cases, provided sufficient and proper cause is brought into light.

Interest and rent payment in respect of current rate of deduction for tax at source is 10%. For the purpose of salary payment, the employers are eligible to deduct TDS from the salaries of their employees on monthly basis and for computation of income tax liability of the later, benefits with regard to investments, housing loans and others are also taken into consideration.

THE ISSUE

However, if an employee fails to furnish his PAN card number at the time of making payment than the rate of TDS will directly be doubled from 10% to 20%, which may hurt the assessee. In case the original rate of deduction made on salary is more than 20%, then, then TDS will be applicable at such higher rate.

While the action of TDS is in progress, the deductor, that is, the employer, shall issue a certificate in Form no 16 or 16A to the payer of such TDS, that is, the employee, which acts as a proof for claiming credit for such purpose. The facility of cross checking is available by means of Form 26AS, and if the amount matches with the amount in form no 16 or 16A, it can be said that TDS has been properly submitted to the IT department. And like in all cases, if the amount of TDS charged is higher than the tax liability in actual, then the same is eligible for a refund by way of filing return of income.

Added to it, assesses who expects their income to be below the basic exemption level, they shall furnish declaration for non-deduction of income tax at source in form no. 15G, whereas the senior citizens can also avail the same benefit in Form no. 15H instead of 15G. This procedure is only applicable to the ordinary residents in India and non-residents are not covered here.  Other cases, which are not covered here, can make an application to the IT Officer to issue a certificate for such purpose in Form no 13.

Thus, we can very well observe the dramatic changes that can take place when one forgets to put his PAN card number in case of TDS.

If You Have Two PAN or More then Surrender Extra PAN,

Friends,

If by mistake you have applied two PAN or more PAN, you have to surrender all PAN Card except one. In other words you should retain only one PAN and surrender all extra PAN numbers that have been allotted to you.

The IT Department has issued the notices to all who have multiple PAN Card (Press Release No. 402/92/2006-MC) (08 of 2007) Dt. 12.02.2007. Might be you missed the notice. It is an offense to have two PAN cards.  No worry, you have a chance to surrender another PAN Card.

First, you should check the validity of extra PAN, If it is valid then surrender all immediately as the following procedure. Check the Validity: https://incometaxindiaefiling.gov.in/portal/register.do?screen=registerPage1
 

How to Surrender Extra PAN

   1. You can surrender extra PAN at the Help Desk, to the Assessing Officer, on department’s website www.incometaxindia.gov.in or Aayakar Sampark Kendra at 0124-2438000.

   2. You can also write to your range ITO or A.O. explaining, why you have extra PAN.

   3. You can also go to the TIN Center and fill the correction Form of PAN. You have to mention the PAN which you are using currently on top of the application form. All other PAN/s inadvertently allotted to you should be mentioned at item no. 10 and the corresponding PAN card(s) should be submitted for cancellation along with the form.

All About of Form 15G and Form 15H

Friends,

Form 15G and Form 15H are used for averting the TDS deduction on interest earned during the financial year on fixed deposits in Banks. There are lots of hesitations in the minds of my subscribers about these forms. They usually enquire about these questions i.e. What is Form 15G and form 15H, How one can submit these forms, How to fill these forms, What is purpose to use these forms ?. In this article i will try to cover all aspect of form 15G and form 15H.

Form 15H

In routine process Bank will deduct tax at source on fixed deposit interest, if it is above Rs. 10000.  The TDS is deducted at the rate of 10% (w.e.f.1-4-2010 If PAN will not be furnished then TDS will be deducted @ 20%). So to get the income tax refund, you have to file the income tax return. To avoid this process, you have to declare that you have not any taxable income. The main and only purpose of these forms, is to submit declaration in writing in duplicate that there is not tax payable on his total income. In this case the payer shall not deduct any tax at source.

    * Form 15H must be used above 65 years old individual.
    * Previous year income should not be taxable.
    * Form 15H should be submitted before the first payment of interest on fixed deposit.

Form 15G

    * Form 15G is same like Form 15H difference is only that form 15G is for every individual below then 65 years.

The duty of submit these forms with assessee before end of the financial year or first payment of interest whichever is earlier.

The payer is under an obligation to deduct tax until the declaration in Form No. 15 G/15H is received and in the event that such form is not received till the end of the financial year, the failure to deduct tax amounts to violation of this section.

Dowonload Free the Files :-

Check PAN Card Status

Friends,

Check PAN Card Status via NSDL

Track your PAN/TAN Application and e-Return Registration Status. You can check the status of your application for new PAN / reprint of PAN card / Changes or Correction in PAN details using the 15 digit unique Acknowledgment Number after 3 or 4 days of application using this facility.

http://tin.tin.nsdl.com/tan/StatusTrack.html

Transaction check Status Inquiry. If you have made the payment for the online application through Credit Card. Using this feature, you can

• Track the status of your application by mentioning the 12 digit transaction number which is displayed on screen at the time of application,

• Change the mode of payment to Cheque or Demand Draft, if the payment through credit card has been unsuccessful, and
 

• Regenerate & print the acknowledgement receipt within 30 days of the date of online application.

http://tin.tin.nsdl.com/pan/changemode.html

Know your PAN number. — http://incometaxindiaefiling.gov.in/knowpan/knowpan.jsp

Online Application for Request for New Permanent Account Number Card Or/ And Changes Or Correction in PAN Data (PAN Change Request Form), read the instructions here – http://tin.tin.nsdl.com/pan/correction.html
 

Then go to the bottom on the page, and for Apply for New Card Or / And Changes Or Correction in PAN Data select Individual (or your required choice) and click Select. This will open the Form. Fill the Form and Submit.

Check PAN Card Status via UTITSL

Online Application for New PAN (Form 49A). Make sure to read the guidelines and instructions at http://www.utitsl.co.in/utitsl/site/instructions.html

Now view the form – http://www.utitsl.co.in/utitsl/uti/newapp/newpanapplication.jsp
 

Complete the form and then click Submit.

You can check the status of your application for new PAN or Grievance Applications (CSF) — http://www.utitsl.co.in/utitsl/site/pantracker.jsp

LOCATE PAN APPLICATION CENTRE. To locate UTI PAN application centre in your area — http://www.myutitsl.co.in//intra/web/search_psa.jsp