IDFC INFRASTRUCTURE BOND : Save Upto Rs. 6180/- : Issue closes : February 04, 2011

In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (“Income Tax Act”) to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly.

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Some relief in Budget 2011-12 (Income Tax)

Friends,

At present the maximum limit u/s 80C is Rs. 1,00,000/- with an additional limit of Rs. 20,000/- under Section 80CCF. The tax exemptions for savings is received under section 80C of the Income Tax Act while the special window of Rs 20,000 investment in infrastructure bonds is available under section 80CCF (Total of Rs. 1,20,000/-).To give some relief to common man battling rising prices, finance minister  Sh. Pranab Mukherjee is expected to raise the exemption limit on annual savings of an individual in the upcoming Budget.

The savings exemptions may be raised in the Union Budget 2011-12 from the present Rs 1 lakh. In 2010-11, the finance ministry allowed an additional exemption of Rs 20,000 for investment in long-term infrastructure bonds.

Sh. Mukherjee is expected to raise the Rs 1 lakh exemption limit by another Rs 20,000 in the Union Budget in February, a Cabinet minister told FE. Besides pushing up the savings rate, this would align the current income tax regime towards the proposed Direct Taxes Code (DTC).

“This year is going to be an year of consolidation towards DTC,” a top official in the finance ministry had said recently. In the DTC, the government has proposed tax exemption on annual savings of up to Rs 1.5 lakh.

The tax exemption for savings limit of Rs 1 lakh when increased, will give an additional cushion to the common man who is grappling with price rise already. Tax experts also feel that there is a case for to raising the savings exemptions limit as the current exemption was prescribed long back. Last year, Planning Commission had suggested to the finance ministry that savings exemption limit can be raised to Rs 1.5 lakh.

All about PAN - FAQ's

Friends,

(Know Date of Birth on PAN Card)

Here is all the information about PAN you want to know Like as What is PAN?, Is it necessary to have a PAN ?, Where to apply for PAN and much more.

1. What Is PAN?

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.

A typical PAN is AABPS1205E.

{Section 139A(7) Expln (b) and (c)}

2. Why Is It Necessary To Have PAN?

It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.

{Section 139A (5) (a) and (b)}

It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank.

(Cost Inflation Index 2010-11)

{Section 139A (5) (c) read with Rule 114B}

3. How does Income Tax Department ensure that PAN is quoted on transactions mentioned above?

It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.

{Section139A (6)}

4. Is it compulsory to quote PAN on return of income?

Yes, it is compulsory to quote PAN on return of income.

5. How will these authorities verify PAN?

A facility for verifying PAN is available on the website of the Income Tax department.

6. Who must have a PAN?

i. All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.

{Section 139A (1) and (1A)}

ii. Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.

{ Section 139A (5) (c) read with Rule 114B}

iii. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.

{Section 139A (2) and (3)}

7. Can a person obtain or use more than one PAN?

Obtaining or possessing more than one PAN is against the law.

{Section 139A (7)}

8. Where to apply for PAN?

In order to improve PAN related services, the Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to set up and manage IT PAN Service Centers in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centers. For convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Center and likewise there are more than one TIN Facilitation Centers.

9. How to apply for a PAN? Can an application for PAN be made on plain paper?

PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or NSDL (www.incometaxindia.gov.in, www.utiisl.co.in or tin.nsdl.com ) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service centers and TIN Facilitation centers.

10. Can an application for PAN be made in Form 49A obtained from anywhere?

Yes, PAN application may be made on Form 49A obtained from any source other than IT PAN Service Centers or TIN Facilitation Centers. For instance, a PAN application may be made on form downloaded from the website of Income Tax department or UTIISL or NSDL; or on form printed by local printers or a photocopy of downloaded or printed form.

11. Can an application for PAN be made through Internet?

Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for new PAN card (for an existing PAN) may also be made through Internet. For more details visit (www.tin-nsdl.com)

12. How do I get a PAN allotted quickly (TATKAL)?

If an application for allotment of PAN is submitted through Internet and payment made through a ‘nominated’ credit card, the PAN is allotted on priority and communicated through email.

13. How to find an IT PAN Service Center or TIN Facilitation Center?

Location of IT PAN Service Centers or TIN Facilitation Centers in any city may be obtained from local Income Tax Office or any office of UTI/UTIISL or NSDL in that city or from websites of the Income Tax department (www.incometaxindia.gov.in or UTIISL (www.utiisl.co.in) or NSDL (http://tin.nsdl.com)

14. What services are provided by these IT PAN Service Centers or TIN Facilitation Centers?

IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A) and forms for ‘Request For New PAN Card Or/ And Changes In PAN Data’, assist the applicant in filling up the form, collect filled form and issue acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant.

15. What if I submit incomplete Form 49A?

IT PAN Service Centers or TIN Facilitation Centers shall not receive any incomplete and deficient PAN application. However, these centers will assist applicants to correctly fill up form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’, as the case may be.

16. What documents and information have to be submitted along with the application for Form 49A?

a. Individual applicants will have to affix one recent, coloured photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;

b. Any one document listed in Rule 114 must be supplied as proof of ‘Identity’ and ‘Address’; and

c. Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A.

17. Which documents will serve as proof of ‘Identity’ in case of Individual applicants, including minors and HUF applicants?

Copy of school leaving certificate or matriculation certificate or degree of a recognized educational institution or depository account or credit card or bank account or water bill or ration card or property tax assessment order or passport or voter identity card or driving license or certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer;

In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Identity;

In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of Identity.

18. What is proof of ‘Address’ for Individual applicants, including minors and HUF applicants?

Copy of electricity bill or telephone bill or depository account or credit card or bank account or ration card or employer certificate or passport or voter identity card or property tax assessment order or driving license or rent receipt or certificate of address signed by a MP/ MLA/Municipal Councilor / a Gazetted Officer;

In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Address;

In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of Address.

19. What documents will serve as proof of Identity and Address for other applicants?

Copy of Certificate of Registration issued by the Registrar of Companies or Copy of Certificate of Registration issued by the Registrar of Firms or Copy of Partnership Deed or Copy of Trust deed or Copy of Certificate of Registration Number issued by Charity Commissioner or Copy of Agreement or Copy of Certificate of Registration Number issued by Charity Commissioner or Registrar of Co-operative 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.

20. How to find ‘Assessing Officer code’?

Assessing Officer code may be obtained from Income Tax Office where you submit your return of income. Applicants who have never filed return of income may find out Assessing Officer code with the help of IT PAN Service Center or TIN Facilitation Center or jurisdictional Income Tax Office.

21. Is a photograph compulsory for making an application for PAN?

A photograph is compulsory only in case of ‘Individual’ applicants.

22. What is the procedure for applicants who cannot sign?

In such cases, Left Hand Thumb impression of the applicant should be affixed on Form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’ at the place meant for signatures and got attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.

23. Is father’s name compulsory for female (including married/divorced/widow) applicants?

Only father’s name is required to be filled in the PAN application (Form 49A). Female applicants, irrespective of marital status, should write only father’s name in the PAN application

24. Is it compulsory to mention telephone numbers on Form 49A?

Telephone number is not compulsory, but if provided it may help in faster communication.

25. Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards?

Section 160 of IT Act, 1961 provides that a non-resident, a minor, lunatic, idiot, and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.

26. I had applied to the department but I do not know my PAN?

Please contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 (or 95124-2438000 from NCR) or visit the www.incometaxindia.gov.in and go to ‘know your PAN’.

27. Are there any charges to be paid at IT PAN Service Centers or TIN Facilitation Centers?

UTIISL and NSDL have been authorized to collect Rs.60 + Service Tax as applicable, per PAN application and this includes cost of a tamper proof PAN card. This amount will have to be paid in cash at IT PAN Service Center or the TIN Facilitation Center.

28. Do you need to apply for a PAN when you move or transfer from one city to another?

Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change during lifetime of PAN holder. Changing the address or city, though, may change the Assessing Officer. Such changes must, therefore, be intimated to nearest IT PAN Service Center or TIN Facilitation Center for required correction in PAN databases of the Income Tax department. These requests will have to be made in a form for ‘Request For New PAN Card Or/ And Changes In PAN Data’

29. I had applied to UTITSL/ NSDL a month ago but I have not received my PAN card and I have to file my return of income.

Please contact Aaykar Sampark Kendra (0124-2438000 or 95124-2438000 from NCR) or www.incometaxindia.gov.in or send an email to pan@incometaxindia.gov.in

30. Will the existing PAN cards issued by the Department remain valid?

All PAN allotted and PAN card issued by the Department will remain valid. All persons who have been allotted a PAN need not apply again.

31. Income Tax Department has issued me a PAN card; can I obtain a new tamper proof PAN card?

For obtaining the tamper proof PAN card an application will have to be made in the form for ‘Request For New PAN Card Or/ And Changes In PAN Data’ to IT PAN Service Center or TIN Facilitation Center, in which existing PAN will have to be indicated and old PAN card surrendered. The payment of Rs.60 + Service Tax as applicable, will also have to be made.

32. I had applied for PAN and received PAN number but have not received the PAN Card?

Apply in the form for ‘Request For New PAN Card Or/ And Changes In PAN Data’ at any IT PAN Service Center or TIN Facilitation Center quoting the PAN allotted to you.

33. How will the new PAN card be delivered to me?

The UTIISL or NSDL, as the case may be, will ensure delivery of new PAN card at the address indicated by you in the PAN application form or form for ‘Request For New PAN Card Or/ And Changes In PAN Data’

34. I want to pay taxes today but I do not have a PAN?

It takes about 15 days to get a new PAN allotted. However, PAN can be obtained in around 5 days if application is made through Internet and processing fee paid through credit card. It is advisable to initiate action for obtaining PAN will in time.

35. Who should be contacted for inquiries regarding PAN applications?

All such inquiries should be addressed to:

For UTIISL The Vice President IT PAN Processing Centre, UTI Investor Services Ltd Plot No. 3, Sector – 11 CBD_ Belapur Navi Mumbai-400 614 e-mail.- utiisl-gsd@mail.utiisl.co.in Tel No. 022-27561690 Fax No. 022-27561706

For NSDL The Vice President Income Tax PAN Services Unit, NSDL 4th Floor, Trade World, A Wing Kamala Mills Compound, S. B. Marg, Lower Parel, Mumbai-400 013 e-mail.- tininfo@nsdl.co.in Tel No. 022-2499 4650 Fax No. 022-2495 0664

Coupon number or Acknowledgment number, as the case may be, should be mentioned in all communications.

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Additional deduction U/s 80D for health insurance premium

Friends,

(Must Read This)

If you have done your maximum Savings u/s 80C of Income Tax of Rs. 1 Lac, You can avail additional deduction u/s 80D for health Insurance.  Deduction under section 80D is available for medical claim policy By individual for family and HUF for their members . Other details regarding 80D and medical insurance there under is given below

1. Addition to section 80 C:Section 80D is available other than 100000 deduction available under 80C for life insurance,ppf,gpf,tuition fee,ULIP,House loan repayment etc.
2. Insurer covered:This deduction is available for medical claim policy which should be framed in this behalf by

• by GIC(General insurance Corporation) or by
• any other insurer but approved by IRDA(Insurance Regulatory Development authority)
3. Available to :Deduction is available to Individual (resident or non resident ,Indian Citizen or foreign citizen) , HUF(Hindu undivided Family may be resident or non resident)

4. Mode of payment:Insurance Premium should be paid by any mode other than by Cash .Means if insurance premium is paid by cash then no deduction is available.Before Assessment year 2008-09 ,only payment by cheque was allowed under this section but from Ay  2008-09 onwards the deduction is allowed by other mode also like online payment which is now a days is very popular or by credit card is also allowed.
5. Out of Income :The amount should be paid out of the income chargeable to tax.
6. Proposer of the policy is not must:The premium is to be paid to effect or keep inforce insurance policy  ,there is no condition that assessee should be the proposer of the policy ,
7. Partly contribution: Assessee can  partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)
8. Insurance cover on?:First deduction given below :Insurance Premium may be paid for medical claim insurance policy for assessee himself or spouse or dependent children or any combination of three.
9. Addition for parents:Second deduction given below:Insurance premium may be paid for medical claim insurance for assessee parents (father or mother or for both)
10. Deduction upto 40000:Theoretically ,maximum deduction can be claimed for Rs 40000.(detail as given below)
    

Amount Of deduction  : Two type of Deductions are available to Individuals under this section from  Assessment year 2009-10

1. Deduction on Medical insurance premium paid for himself,spouse,dependent children =Rs 15000 maximum.
2. Deduction on Medical insurance premium paid for parents ,whether dependent on assesee or not =Rs 15000 maximum

Deduction to HUF: Deduction to HUF is available on insurance premium paid for policy taken for  of any member of the  HUF

Addition deduction for Resident Senior Citizen:In addition to two point above,  additional deduction of Rs 5000 is available where assessee or his spouse (wife or husband) or dependent parents or any member of the family in case one and father or mother is a resident in India and a senior  citizen in case two.And same in the case of HUF assessee if policy  has been taken on member which is senior citizen than additional Rs 5000/- deduction is available also to HUF.

Senior citizen means who is at least of 65 year of age or more at any time during the previous year.

Example : An individual assessee pays (through any mode other than by cash) during the previous year medical insurance premium as under

1. Rs 12000/- to keep in force an insurance policy on his health and on his wife and dependent children
2. Rs 17000/- to keep in force an insurance policy on the health of his parents.

According to above provisions he will be allowed of Rs 27000/-(12000/- +15000/-) if neither of his parents is senior citizen .however if any of his parent is a resident senior citizen ,he will be allowed a deduction of 29000(12000+17000) .whether the parents is dependent or not is not a consideration for deciding the deduction under section 80D(from assessment year 2009-10 )(previous year 2008-09)

Further, in the above example ,if cost of insurance on the health of the parents is 30000/- out of which Rs 17000/- is paid (by any non cash mode) by the son and rs 13000/- by the father (who is senior citizen), out of their respective taxable income ,the son get the deduction of Rs 17000/- (in addition to deduction of Rs 12000/- for the medical insurance on self and family) and the father will get deduction under section Rs 13000/-
(Example as given in Finance Act 2008)

Hope it will be now easy to understand the section 80D deduction.

Is Leave Travel Allowance (concession) Taxable ?

Friends,

Salaried employees are being eligible for exemption of certain allowances that are being provided to them by the employer. Allowances are generally made exempt for the purpose of providing a better condition for living and make full use of the allowances that are being provided to them by the employer.

Various allowances that are being exempt in the hands of the salaries employees are educational allowance, leave travel allowance, HRA (house Rent allowance), Conveyance or Transport allowance, Free Education Allowance and many more, pertaining to certain restriction in connection with the availability of the said exemption.

When we talk about the most popular allowance that is being exempt in the hands of the salaried employees then we mostly talk about LTA (Leave Travel Allowance), HRA (House Rent Allowance) and Conveyance or travel Allowance, as they are the most common allowance that are being paid to the employee by the employer on a regular basis.

LTA (Leave Travel Allowance) is being paid to the employee by the employer on leaving to any place situated in the territory of India during the period of his service or can be after the employee has been retired from the service. This is being exempt under section 10(5) read along with the rule 2B. There are various provisions restricting the allowances being exempt to a limited number of trips. An employee is liable to an exemption of two trips from a period of four years and there is also a condition that if a person fails to avail such concession he can avail it in the next year but only once.

A person availing the benefit can take along with him his family. Here the family shall include his spouse, children (only two children born after 1st day of October, 1998), his Parents, brothers and sisters who are at present dependent on the employee for their living.

In case of HRA (House rent Allowance) the exemption can be claimed by an employee if he is living in a rented house and is getting a HRA from the employer. Exemption is being talked about under section 10(13A) in accordance with rule 2A

HRA is being calculated as the least of the actual amount received half of the salary if staying in any metropolitan and 40 percent in case of any other cities or the excess of the rent above 10 percent of the salary for the period and is available of the month for which the rent has actually been paid. Here the word Salary includes “Salary plus Dearness allowance plus Commission (a fixed percentage on the turnover of the company)”.

In case of Conveyance or travel allowance Rupees Nine thousand Six Hundred is being exempt in the hand of each and every employee irrespective of the amount actually spent by the employee, here no proof is required for claiming the exemption.

These are supposed to be the major allowances that are being exempt in the hands of the employee provided to them by the employer.

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Interest received from bank deposit -- Six things we should know regarding TDS

Friends,

If you make some deposits in Bank then you should know the treatment of Interest received from Bank in respect of TDS. Here are Six thing to note :- 

1. Interest earned on bank deposits is subject to tax deducted at source (TDS) if the total interest amount in a financial year exceeds Rs 10,000.

2. Interest earned on term deposits is subject to TDS. However, interest earned on savings account balances is not subjected to TDS.

3. Even if a customer has multiple deposits, the interest earned will be aggregated and subjected to TDS if the threshold level is crossed.

4. TDS is applicable on the entire interest income if it is more than Rs 10,000 in a financial year, and not on the extent to which the interest income exceeds Rs 10,000.

5. TDS is applicable on the entire interest income if it is more than Rs 10,000 in a financial year, and not on the extent to which the interest income exceeds Rs 10,000.

6. TDS is applicable on the entire interest income if it is more than Rs 10,000 in a financial year, and not on the extent to which the interest income exceeds Rs 10,000.

Major Changes In Etds Statement Filing Q4 2010-11

Friends,

In a meeting with Software Vendors on Jan 21, 1011, NSDL has outlined the following changes in eTDS Statement filing for the Fourth Quarter filing

Mandatory Mobile Number

It will be mandatory for responsible person to provide mobile number. However Central and State Government deductors need not provide mobile number

Validation on TDS Rate

Currently there is no validation on TDS Rate except that it has to be numeric . Forthcoming validation will check that Amount Paid / Credit * TDS Rate = TDS Amount
Source of News

If there is a mismatch , a warning error will be given

Deductee record below threshold limit

There is a confusion about reporting of transaction below threshold. In the past, when deductors have reported such transactions, the notice from IT , shows these transaction as short deduction and liable to tax demand. Forthcoming FVU will provide for a flag to show that a deductee record is amount paid/ credit below threshold limit , hence without tax deduction at source

Deductee record where excess tax deducted

On the similar lines, a deductee record where excess tax has been deducted will be shown with a different flag

Editing of Provisionally Booked Challans

If consolidated FVU file is downloaded, then provisionally booked challans will be allowed to be edited

Deduction u/s 80CCF

For the fourth quarter, this new deduction will have to be shown separately in the Salary record of Form 24Q

Making download of consolidated FVU Easier

The recently introduced system of allowing deductors to get consolidated FVU file is being seen as complex by users. Various options being considered by NSDL to make system easier are

    * Digital Signture based authorization
    * Deductor to choose user login & password


Consolidated FVU file will be uploaded in deductor’s login, since complaints are received that these files are not received through emails

Cost Inflation Index f.y 2010-11 Notified

Friends,

(Last Ten Years Income Tax Slab Rates)

 

(TDS Rate Chart)

The CBDT has issued a Notification on Cost Inflation Index 2010-11. The same is reproduced below for your ready reference:

(Print Your Salary Statement HERE)

NOTIFICATION NO 59/2010,Dated: July 21, 2010

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes number S.O. 2292(E), dated the 9th September, 2009, namely:-

(TRACK YOUR PAN APPLICATION STATUS)

In the said notification, in the Table, after serial number 29 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

FINANCIAL YEAR	COST INFLATION INDEX	FINANCIAL YEAR	COST INFLATION INDEX
1981-82	100	1982-83	109
1983-84	116	1984-85	125
1985-86	133	1986-87	140
1987-88	150	1988-89	161
1989-90	172	1990-91	182
1991-92	199	1992-93	223
1993-94	244	1994-95	259
1995-96	281	1996-97	305
1997-98	331	1998-99	351
1999-2000	389	2000-01	406
2001-02	426	2002-03	447
2003-04	463	2004-05	480
2005-06	497	2006-07	519
2007-08	551	2008-09	582

For financial year 09-10 it is            2009-2010   -   632

and for Financial Year 10-11    it is  2010-2011   -  711

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How to know Date of birth on PAN Card ?

Friends,

If you have applied for a PAN Card and you forgot your date of birth, which you written while submitting the Application with Income Tax Department and neither having a copy of PAN card to know your date of birth as per Income Tax Department Database. Is there a way to find date of birth online? No, there is no direct way to know your date of birth as per Income Tax records.

Q. What is indirect way to know Date of birth on PAN Card?

A. Make an application for duplicate pan card without any change write the approximate date of birth,  you will receive letter from NSDL mentioning your DOB as per income tax database. Now send the same letter with tick on the Caption "Print Pan card as per Income Tax Database".

You will receive your duplicate PAN card & DOB in just Rs.94/-

Our readers are requested to post there views/ideas and any other method/trick to know date of birth on PAN in comment section below the post.

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Deduction under section 80E for Interest on education Loan taken for self and relatives

Friends,

Have you taken an education loan to support higher studies of yourself or of your spouse, Children or for the student of whom you are legal guardian and you are not aware of the tax benefits that you are entitled to. Then here is a guide that will assist you to know tax benefits on education loans. These benefits help you to reduce the overall cost of your education loan.

The deduction under section 80E is available to an individual if following conditions are satisfied:

1. Deduction available only to Individual not to HUF or other type of Assessee.

2. Deduction amount: – The amount of interest paid is eligible for deduction and moreover there is no cap on the amount to be deducted. You can deduct the entire interest amount from your taxable income. However there is no benefit available on the repayment of principal amount of the loan.

3. Deduction available if Interest is been paid during the previous year and was paid out of income chargeable to tax which means if repayment is made from income not chargeable to  tax than deduction will not available.

Note: – Earlier to previous year 2006-07 the above deduction was available only for Interest on loan taken and repaid by the assessee for his own studies.

4. Interest should have been paid on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education. Interest on Loan taken from relatives or friends will not be eligible for deduction under section 80E.

a. approved charitable institution means an institution specified in, or, as the case may be, an institution established for charitable purposes and  [approved by the prescribed authority] under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;

b. financial institution means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;

5.  Loan should have been taken for the purpose of pursuing higher studies of Individual , Spouse, Children of Individual or of the student of whom individual is legal Guardian.

Higher studies means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics;

Income tax department has added (W.e.f. A.Y. 2010-11)  additional fields of studies (including vocational studies) pursued after passing the Senior Secondary Examination or its equivalent from any school, Board or University recognised by the Central or State Government will also be covered under deduction in respect of interest paid on loan taken for higher education.

6. Interest should have been paid for the loan taken for the purpose of   pursuing his higher education or of the spouse and children. From A.Y. 2010-11 Relative also includes student for whom the individual is the legal guardian.

7. Deduction period: - Deduction shall be allowed in computing the total income in respect of the initial assessment year* and seven assessment years immediately succeeding the initial assessment year or until the interest is paid by the assessee in full, whichever is earlier.

The tax benefits on education loan are only valid once you start the repayment and moreover they are only available up to eight years. For instance if your loan tenure exceeds eight years, you cannot claim for deductions beyond eight years.

Hence it is better that the education loan is repaid within eight years. Unless if the loan amount is very high and it is difficult to afford a high amount of equated monthly installment (EMI), one should not opt for education loan with longer tenure.

*Initial assessment year means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.

8. Loan should be in the name of Individual: - Deductions on education loan can only be claimed if the loan has been taken in your own name. If your parents, spouse or sibling has taken the loan for your studies, then you are not entitled to get tax benefit.

9. The loan includes not only tuition or college fees but also other incidental expenses for pursuing such studies like hostel charges, transport charges etc.

10. Repayments of education loan NOT covered under Section 80C.

11. There is no condition that the course should be in India.

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NRI NON RESIDENT - SPECIAL PROVISIONS OF INCOME TAX

Friends,

Impact of residential status on the taxability of income

Resident Income:Worldwide Income Taxable

NOR (not ordinary resident)

    *  Income received in India
    * Income accruing or arising in India
    * Income deemed to accrue or arise in India
    *  Income from business or profession controlled wholly or partly in India

Not resident (NR)

    * Income received in India
    * Income accruing or arising in India
    * Income deemed to accrue or arise in India

Special provisions relating to NRs

1. Tax exempt incomes for NRs/NRIs

In following cases investment income is exempt from tax for NRs/NRIs :

    * Interest earned by a person resident outside India from non-resident external (NRE) accounts

    * Interest earned by an NR or NOR from foreign currency (non-resident) (FCNR) accounts
    * Interest on notified securities, bonds, annuity certificates and savings certificates issued by the Central Government
    * Interest on bonds issued by local authorities and notified by the Central Government in the official gazette
    * Dividends received from Indian companies and from specified mutual funds
    * Long-term capital gains from the transfer of equity shares in a company or units of an equity oriented fund provided such transaction has been subjected to securities transaction tax.


2. Computation of capital gains in the case of NRs

    * Any income arising from the transfer of a capital asset is chargeable to tax under capital gains in the year of the transfer. Capital gains are specified as either short term or long term depending on the holding period of the capital assets.
    * Short-term capital gains are included in total income and are taxed at the progressive slab tax rate of an individual, except for short-term capital gains resulting from specified securities traded on a recognized stock exchange in India (and on which Securities Transaction Tax is paid), which are taxed at a fixed rate of 15% plus applicable cess. \
    * Gains by an NR on the sale of assets (i.e., shares and debentures of an Indian company) acquired in foreign currency are computed differently.
    * Capital gains are computed by converting the full value of consideration, expenses incurred in connection with the transfer, and the cost of acquisition in the same foreign currency as was initially utilized for purchase. This conversion takes care of exchange-rate fluctuations.

3. Relevant provisions relating to NRIs and PIOs
    * Further, separate tax provisions have been prescribed for NRIs under the act in respect of long-term capital gains (Para A) or investment income (Para B) derived from foreign exchange assets.
    * A foreign exchange asset is a specified asset acquired by an NRI out of convertible foreign exchange.
    * NRIs also enjoy other benefits such as exemption from filing their return of income and the continuation of benefits under the special tax regime discussed in Paragraphs C & D.

Specified assets are:

    * Shares, debentures and deposits of public companies
    * Shares of private companies
    * Securities notified by the Central Government
    * Other notified assets (no such asset has yet been notified).

A. Income from long-term capital gains
Where long term capital gains arise from transfer of specified assets, the applicable tax rate will be 10% (plus applicable cess) on net capital gains.

From gains on such transfers, only expenses incurred in connection with the transfer are allowed as a
deduction to determine net capital gain. The valuation under these provisions is not in foreign currency.
Therefore, exchange-rate fluctuations are not considered.

Capital gains arising on the transfer of specified assets are completely exempt from tax if the following
conditions are fulfilled:

    *  The asset transferred must be long-term capital assets
    * Net consideration must be invested in specified assets
    * Investment should be made within six months of the transfer
    * Where only a portion of net consideration is reinvested, proportionate exemption is allowed
    * New asset must be held for at least three years.

B. Investment income
No deductions are permitted from income earned on investments. However, this income is taxed at a
preferential rate of tax of 20% (plus applicable cess), as against the maximum marginal rate of 30% (plus
applicable cess).

C. Exemption from filing return of income
The due date for filing both income tax and wealth tax returns is 31 July, i.e., within four months of the end
of the fiscal year (31 March).

NRIs have the option of not filing a tax return if:

    * Their total income consists only of investment income and/or long-term capital gains
    * Tax has been deducted at source on such income.


D. Continuation of special benefits
These provisions shall continue to apply to investment income even after NRIs become resident, provided
they furnish a declaration along with their tax returns.

NRIs may completely opt out of the special provisions mentioned above by filing a written declaration along
with their tax returns.


    * Special benefits relating to global depository receipts (GDRs)

There are special benefits relating to income from GDRs. The provisions apply to:

    * Interest and dividends
    * Long-term capital gains on bonds or shares issued abroad by Indian companies and purchased in foreign currency.

The tax rate on gross income, plus applicable cess, is 10%. Gross income means that no deduction is
allowed for:

    * Business expenses
    * Expenses on transfer
    * Other expenses
    * Deduction on account of specified payments or income.

Transfers outside India between NRIs, inter se, are not subject to capital gains tax in India.

Direct Tax Code effect on Taxation and on Salaried Persons

Friends,

The long awaited DTC has finally been put into it’s much talked about structure and framework. The expected Direct Tax Code, or otherwise known as DTC is the replacement version of Income Tax Act that charges the taxability of the individuals and corporate. The DTC is expected to come into the picture of taxation from April 1, 2012. An attempt has been made to analyze the impact which it is likely to have on the salaried class.

The proposed model of DTC was expected to bring about a radical change in the personal taxation slabs and exemptions but however the present scenario appears to be very different. The proposed change is expected in respect tax slab has been done away with, that is, the same tax slab is expected to be for the both the gender, men and women respectively. Added to it, the tax exempt savings have been also recasted. According to the present context, the income tax system offers assesses a yearly deduction of Rs. 1, 00, 000 under the section 80C of the Income Tax Act. According to the Income Tax Act, section 80C includes deductions in respect of expenditure made by an assessee by way of Public Provident fund (PPF) which amounts to Rs. 70, 000, Provident fund (PF), NPS and ELSS. Added to it, there are also other areas under this section which covers areas like payment of premium for pure life insurance or otherwise known as ULIP, payment of principal amount of home loan, NSC, Fixed deposits having a minimum maturity period of five years. Considerations for payment of tuition fees for full time education for up to 2 children have also been kept in the purview of this section.

Other section like 80D gives an additional deduction of Rs. 15, 000 in respect of medical allowance. A certified class of notified infrastructure bonds can also be helpful in providing additional deduction of Rs. 20, 000 under the section 80CCf of the act.

The new story under the DTC has raised the level of annual deduction by making the available deduction in respect of computation of income to Rs. 1, 50, 000. According to the available information it has been observed that investments in public provident fund (PPF), provident fund (PF), NPS and pure life insurance policies would come under the deduction category of EEE. The respective section of EEE in respect to the proposed Direct Tax Code (DTC) relates to tax exemption which shall be given to the assesses when they invest a particular kind of investment which relates to accumulation and withdrawal of particular specified securities as prescribed by the tax department. But unfortunately, the benefit of principal repayment in context to payment of existing home loans has been abolished which means that such category shall not be eligible for claiming deduction.

Thus, in light of the above mentioned facts on can say that the DTC has though lifted the amount of deduction which shall be available to assesses but on the other hand the deduction for repayment has been done away with. Therefore, salaried class of people should make a wise consideration before investing funds.

TDS on salary without PAN u/s 206AA

Friends,

Finance Act (No. 2) 2009, w.e.f. 01/04/2010 has inserted sec. 206AA in the Income-tax Act which makes furnishing of PAN by the employee compulsory in case of payments liable to TDS. If employee (deductee) fails to furnish his/her PAN to the deductor, the deductor shall make TDS at a higher of the following rates

i. at the rate specified in the relevant provision of this Act; 

or ii. at the rate or rates in force;

or iii. at the rate of twenty per cent.

The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS .

This section applies to any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVII-B of Income Tax Act. As chapter XVII-B covers all Payments including Salaries, Salaries are also covered by Section 206AA. In case of salaries there can be following situations


   1. Where the income of the employee computed for TDS u/s 192 is below taxable limit.
   2. Where the income of the employee computed for TDS u/s 192 is above taxable limit.


In first situation, as the tax is not liable to be deducted no tax will be deducted.

In the second case, if PAN is not furnished by the employee, the deductor will calculate the average rate of income-tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to deducted at the average rate. Education cess@ 2% and Secondary and Higher Education Cess @ 1 % is not to be deducted, in case the TDS is deducted at 20% u/s 206 A A of the Income-tax Act.

Rejection of TDS/TCS statements – Common errors and course of action

Friends,

As you know it is mandatory for all Deductors (Where tax at source is deducted) to file Income Tax Return on quarterly basis. While filing eTDS/eTCS return there could be some type of errors which we know after filing the return like as Bank BSR code wrongly mentioned, Challan No. or  Challan Date wrongly mentioned, Wrong PAN or TAN has been mentioned and like wise so many errors could be there. And for these reasons the return is rejected .Then problem occurs How to rectify these errors. Here are Solutions where a regular statement is rejected.

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If there is still some errors then you have to file a correction statement.

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Save Tax Invest upto Rs. 20000/- u/s 80 CCF (Above limit of Rs. 100000/-)

Rural Electrification Corporation (REC), has launched tax free infrastructure bond from January 12, 2011. The issue will close on March 28, 2011. REC Infrastructure Bond has 2 options



(IDFC INFRA BONDS)


Option 1
Investment period of 10 years – Interest rate is 8.1% per year

Option 2 – Investment period of 10 years with buyback option after 5 years – Interest rate is 8%. Buyback option means investor can sell the bond back to REC after 5 year and take the money back.

The minimum investment amount in REC Infrastructure Bond is Rs 10,000. After Rs 10,000 investment bond can be purchased in additional investment amount of Rs 5,000. The bond can be purchased in demat and physical forms.

The bonds are proposed to be listed on BSE and NSE. Bonds can be sold on stock exchange only in demat format.

Issue Highlights of Long Term Infrastructure Bonds - Series I

          For Application Form click here

          For copy of Information Memorandum click here

          Application Forms are available with empanelled Arrangers (click here for list of              Empanelled Arrangers)

          Application Forms can be deposited with all branches of UBI, IDBI & designated              branches of HDFC & Canara Bank (click here for list of designated branches)

          Our Registrar to the Issue :
             M/s  Beetal   Financial   & Computer Services  Pvt.  Ltd.,
             Beetal   House, 3rd  Floor,  99  Madangir, 
             Behind  Local  Shopping Center, New Dehi -110062
             Phone No. 011-29961281
             Email:

         For any assistance or clarification please contact:
            REC LIMITED, Bond Section
            Core-4, SCOPE Complex
            7, Lodhi Road
            New Delhi - 110003 
            Phone : 011-43091527, 011-24361320
            Tollfree No. : 1800-200-1333
            Email:investorcell@recl.nic.in

How To file Income Tax Return Online ?

Friends,

Now a days every one is busy in finalising their Income Tax Calculations for the financial year 2010-11. After doing all this one have to file Income Tax Return for the respective year. Here we will talk about How to file Income Tax Return Online as Income Tax department has provided this facility. It's very easy after knowing simple steps described below.

In this article I will try to tell all aspect of online income tax return. It is very easy task for layman even you don’t required any software. However you need to know about scrolling of computer mouse. There are lots of benefits to file income tax return online. No need to stand in long queues at the income tax department.  No fear of lost any document, one can print and download whenever you wants after log-in your account.
 

Filing Income Tax Return

  1. Select appropriate type of Return Form

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 •

   2. Download Return Preparation Software for selected Return Form.

   3. Fill your return offline and generate a XML file.

   4. Go to Income Tax Department website.

   5. Register and create a user id/password
  

   6. Login and click on relevant form on left panel and select “Submit Return”
   7. Browse to select XML file and click on “Upload” button

   8. On successful upload acknowledgement details would be displayed. Click on “Print” to generate printout of acknowledgement/ITR-V Form.

   9. ncase the return is digitally signed, on generation of “Acknowledgement” the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record.

  10. In case the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be submitted with the local Income Tax Office withing 15 days of filing electronically. This completes the Return filing process for non-digitally signed Returns.

  11. Update: Now you have to send ITR-V to the “Income Tax Department , CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka”. They’ll send the acknowledgment receipt at your email address.

Indian Oil Corporation Limited (IOCL) Recruitment 2011

Friends,

Indian Oil Corporation Ltd (IOCL) a Public Sector Undertaking owned by Government of India has advertised for filling up the posts of Engineering Assistant, Junior Accounts Assistant & Technical Assistant. Those who are looking for the jobs opportunities in Indian Oil Corporation Limited they can apply against the current jobs openings in IOCL.

IOCL is leading public sector undertaking in oil sector in India. IOCL is looking for 18 posts of Engineering Assistant in Mechanical / Electrical / Telecommunication & Instrumentation discipline, 01 post of Junior Account Assistant and 17 Posts of Technical Assistant Grade – I.

Engineering Assistant Grade – IV

No. of Posts : 18 ( Mechanical – 05, Electrical – 07, Telecom & Instrumentation – 06)

Junior Accounts Assistant Gr. IV

No. of Posts : 01

Technical Assistant Gr. – I

No. of Posts : 17

Age Limit : 18 – 26 Years for all posts

Last Date : 30 January 2011

Those who are looking for the career opportunities in Indian Oil Corporation as Engineering Assistant, Technical Assistant or Junior Accounts Assistant they can apply against the current jobs openings in IOCL.

Detailed advertisement and instructions for filling up application for the above posts in IOCL can be downloaded from the official website of IOCL.

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View Details Here

Download Application 

To download the advertisement details and application for the current jobs openings in Northern Region Pipelines they can click the advertisement link given above and then click on the “Openings in Northern Region Pipelines”

Recruitment of Management Trainee by Food Corporation of India

Friends,

Food Corporation of India (FCI) a Government of India undertaking has invited the application for recruitment to the posts of Management Trainee. These posts of Management Trainee are to be filled in North Zone, South Zone, East Zone and West Zone.

Food Corporation of India has advertised for filling up 300 posts of Management Trainee in North Zone, 59 Posts of Management Trainee in South Zone, 99 Posts of Management Trainee in East Zone, 115 Posts of Management Trainee in West Zone and 33 Posts of Management Trainee in North East Zone.

Those who wants to apply against these posts of Management Trainee in Food Corporation of India they must apply online. Detailed advertisement, eligibility condition and instructions for recruitment to the posts of Management Trainee in FCI can be downloaded from the official website of Food Corporation of India from the link given below.

Zone Wise Current Jobs Openings in Food Corporation of India is as Given below.

Management Trainee

No. of Posts : 300 ( Depot – 83, Accounts – 51, General – 160, Movement – 06)

South Zone

Management Trainee

No. of Posts : 59 (Depot – 21, Accounts – 38)

East Zone

Management Trainee

No. of Posts : 99 (Depot – 13, Accounts – 14, General – 72)

West Zone

Management Trainee

No. of Posts : 115 ( Depot – 54, Accounts – 15, General – 46)

North East Zone

Management Trainee

No. of Posts : 33 (Depot – 02, Accounts – 11, General – 20)

Education Qualification :-

Education Qualification for Management Trainee (Depot) -

Post Graduate Degree/Post Graduate Diploma of 2 years full time duration or 3 years part time in Business
Management/Industrial Relations/MCA from a recognized University/Institute

Education Qualification for Management Trainee (Account) -

CA/AICWA/ACWA (London)/MBA (finance) from a recognized University/Institute

Education Qualification for Management Trainee (General) -
Post Graduate Degree/Post Graduate Diploma of 2 years full time duration or 3 years part time in Business
Management/Industrial Relations/MCA from a recognized University/Institute

Education Qualification for Management Trainee (Movement) -

Post Graduate Degree/Post Graduate Diploma of 2 years full time duration or 3 years part time in Business
Management/Industrial Relations/MCA from a recognized University/Institute

Last Date for Online Application :-

East Zone & North East Zone – 15 January 2011 – 14 February 2011

North Zone, South Zone & West Zone – 22 January 2011 – 21 February 2011

Those who wants to apply against the current jobs advertised by Food Corporation of India they can apply online from the link given below.

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Apply Online Application:-

Advertisement details and link for submission of Online application is given above. Those who wants to apply against the various posts Management Trainee in Food Corporation of India can visit the above link for detail instructions.

Recruitment by Steel Authority of India Limited (SAIL)

Friends,

Steel Authority of India Limited (SAIL) has invited the application for recruitment to the posts of managers in various disciplines and Security Officer Intelligence and Investigation. Those who are looking for the career opportunities in Steel Authority of India Limited (SAIL) in Management Cadre as Manager they can apply against the current jobs openings in SAIL.

Steel Authority of India Limited (SAIL) has advertised for filling up the posts of Senior Manager Project Finance / Project Materials/ Project Monitoring & Implementation/ Project Personnel Liasing & Administration) and Security Officer (Intelligence and Investigation). Those who wants to apply against these management jobs in Steel Authority of India Limited (SAIL) they can visit the official website of SAIL from the link given below for detailed advertisement and application form.

Sr. Manager (Project Monitoring & Implementation)

No. of Posts : 10

Sr. Manager (Project Materials)

No. of Posts : 05

Sr. Manager (Project Personnel Liasing & Administration)

No. of Posts : 05

Sr. Manager (Project Finance)

No. of Posts : 04

Security Officer (Intelligence & Investigation)

No. of Posts : 02

Pay Scale for Senior Manager : Rs. 43200 – 3% – 66000/-

Pay Scale : Rs. 32900 – 3% – 58000/-

Those who fulfill the eligibility conditions and wish to apply against the current jobs openings in Steel Authority of India Limited (SAIL) they can apply online from the SAIL website.

Last Date for Online Application : 31 January 2011

Last Date for Submission of Hard Copy : 07 February 2011

SAIL Website : http://www.sail.co.in/

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For more details and instructions and career opportunities in Steel Authority of India Limited please visit the SAIL website from the link given above.

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Tags: Careers with SAIL, SAIL, SAIL Recruitment, SAIL Shine Jobs, Security Officer, Sr. Manager, Steel Authority of India Limited
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