Service tax: Norms for point of taxation simplified

The Finance Ministry has come to the rescue of industry and professionals by considerably simplifying its norms on ‘point of taxation' for service tax collection purposes. The point of taxation will now be primarily linked to date of invoice/collection, according to the latest changes made by the Central Board of Excise and Customs (CBEC). The simplification has come a month after the original norms were issued and would help allay the concerns expressed by industry. Point of taxation refers to the time when a taxable service should be brought to service tax. Prior to the latest changes, the point of taxation was also linked to the date of provision of services/date when services were to be provided. This has now been dropped. The point of taxation was hitherto decided as the earlier date of invoice, date of collection or date of provision of services/date when services were to be provided. Meanwhile, it has now been clearly spelt out that the point of taxation for services exports will be the date of payment. Also, professionals such as chartered accountants, company secretaries, architects and interior decorators need to pay service tax only when they receive payment for their services and not on accrual basis. This will come as a big relief for small practitioners and professionals as they generally get payments for their services after a gap of 4-6 months.

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REVERSE SECTION 80C BENEFIT OF HOME LOAN

Friends,

Under Income Tax Act there is a provision for a rebate u/s 80C for Home Loan taken for Construction of house. But if someone sales the house in question within 5 years the benefit taken on this regard will be reversed. Some questions regarding this are given below :-

I had purchased a house in an under construction building in the March 2006. Had taken a loan from HDFC for the same. Got the possession of the house in November 2006.Having paid all the respective dues to the builder we starting paying the EMI to HDFC from April 2006 onwards to HDFC bank.

I have sold this property in the month of January 2010.

Qtn 1. please advised if this comes under short term capital gains or long term capital gains

Qtn: 2, In 2009 August we bought a house taking a fresh loan from HDFC bank.can I use the money from the above sale to pay of this loan and waive of the tax.

Qtn:3 I already have one property in my name, can I buy a second property to waive of the tax

Qtn 4 : alternative, i can buy land in my home town.

Point wise answer to your queries is given here under.


Ans1:You have given followings facts.

   1. Under construction house Purchased in March,2006
   2. Possession of the House has been taken in November,2006
   3. Loan Repayment to HDFC has been started in April ,2006
   4. Due to Seller /Builder has been Given By April 2006

From this facts ,I can conclude that the Property has been transferred in March 2006 it self , as the Bank provides Loan only after registration on your Name .So purchase date I assume that in March 2006.Now you have sold the House in January ,2010 so total holding period is more than 3years(Jan,2010-March ,06) ,so the Capital gain is Covered under Long Term Capital Gain.Even if Date of purchased is considered as November 2006(Jan,2010-November,2010) ,then also it is covered under Long term capital Gain.


Ans:2 Long term capital gain on House transfer ,can be saved by Individual under section  54,the detail of the section are

Capital gain arising from sale of above said property will be saved up to the amount used in

    to purchase a residential house within year before the date of transfer of old house or

    Purchase a residential House within two year after the date of transfer of old house.

    or construct a house with in three year from date of transfer of old house property.


Capital gain is saved up to the amount which is used in to buy /construct new house,if amount used for house purchased/construction is less than the amount of capital gain than the balance amount will be taxed as long term capital gain.In Simple words ,the requirement under this section is to Invest only amount up to Capital gain and not Total Net Sale proceed Collected from house sold .

As given above as per section 54 ,New house can be purchased within one year before the transfer of new House.In your case you have sold House in Jan,2010,so House purchased in August ,2009 is eligible for Exemption under section 54.Further if you repays the HDFC bank loan taken on new house then the same amount will be eligible for exemption under section 54.

Ans 3: The section 54 is applicable where you have sold a house and after that invested the Long term capital gain in New house.Under section 54 there is no bar on number of houses you have or on houses purchased in future.The restriction on number of houses is placed under section 54F.Even in section 54F ,you can purchase new house ,if you already have another house on your name(read 54 F from here).This section(54F) is applicable where the Asset sold is other than House . (read Section 54F Vs 54EC from here).The only restriction under 54 is that if you will sell the New house before 3 years of purchase then the cost of that house will be reduced by the capital gain exempted on sale of original(OLD) house.

Ans-4:Yes you can also Invest amount in Land but condition is that you will construct a house on that land with three years from the date of sale of old house .So in your case construction should be completed by Jan ,2013 on that land.Further if amount invested in land is less than the capital gain amount on sale of House (sold in Jan ,2010) then to claim exemption in this year ,you have to deposit Balance amount in Capital gain account scheme ,1988 before the due date of Return .In case of individual due date in non audit cases is 31st July .

Example: Suppose you have Long term capital gain on your house sold in Jan,2010 is 20 Lacs.And Land proposed to be purchased is Just of 12 Lacs then to save complete Capital gain you have to deposit 8 Lakhs in capital gain account scheme by 31st  July ,2010.Further You have to use amount deposited in capital gain scheme by Jan , 2013.Otherwise unused amount will be taxable in Fy 2012-2013. (read section 54 Details here)

Reverse Of section 80C benefits

One more point ,I would like to point out here that  as Per section 80C ,if a person is claiming House loan repayment benefit under section 80C and have sold the House within 5 years from thr end of Financial year in which House has been purchased then all the benefit availed under this section (80C) of earlier years will be reversed and included in the taxable income of the year in which house has been sold.
In your case you have purchased house in March ,2006 and sold the same in Jan,2010 means before the expiry of the five years from the purchase of the house , so tax benefit  (if any ) on repayment of house loan)availed by you under section 80C ,In Financial year 2006-07,2007-08,2008-09 will be revered in Financial year 2009-10 and no benefit in Financial year 2009-10 in respect of old house .So keep this point in Mind .

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Make Donations and Cut Down your Income Tax u/s 80G

Friends,

If you have decided to donate some money for charitable purpose and you are a Income Tax payee then you can claim a Deduction of the sum paid as donation under section 80G of Income Tax. The deduction can be claimed in two forms i.e. while calculating your taxable income 100% of donation can be deducted for donation made to some specified institutions described below and for the others its 50% of the donation made. The details are as under :-

80G. Deduction in respect of donations to certain funds, charitable institutions, etc.

(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,-

(i) in a case where the aggregate of the sums specified in sub-section (2) includes any sum or sums of the nature specified in sub-clause (iiia) or in sub-clause (iiiaa) or in sub-clause (iiiab) or in sub-clause (iiie) or in sub-clause (iiif) or in sub-clause (iiig) or in sub-clause(iiiga)or sub-clause (iiih) or sub-clause (iiiha) or sub-clause (iiihb) or sub-clause (iiihc) or sub-clause (iiihd) or sub-clause (iiihe) or sub-clause (iiihf) or sub-clause (iiihg) or sub-clause (iiihh) sub-clause (iiihi) or sub-clause (iiihj) or in sub-clause (vii) of clause (a) or in clause (c) or in clause (d) thereof, an amount equal to the whole of the sum or, as the case may be, sums of such nature plus fifty per cent. of the balance of such aggregate; and

(ii) in any other case, an amount equal to fifty per cent. of the aggregate of the sums specified in sub-section (2).

(2) The sums referred to in sub-section (1) shall be the following, namely:-

(a) any sums paid by the assessee in the previous year as donations to-

(i) the National Defence Fund set up by the Central Government; or

(ii) the Jawaharlal Nehru Memorial Fund referred to in the Deed of Declaration of Trust adopted by the National Committee at its meeting held on the 17th day of August, 1964; or

(iii) the Prime Minister's Drought Relief Fund; or

(iiia) the Prime Minister's National Relief Fund; or

(iiiaa) the Prime Minister's Armenia Earthquake Relief Fund; or

(iiiab) the Africa (Public Contributions - India) Fund; or

(iiib) the National Children's Fund; or

(iiic) the Indira Gandhi Memorial Trust, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of February, 1985; or

(iiid) the Rajiv Gandhi Foundation, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of June, 1991; or

(iiie) the National Foundation for Communal Harmony; or

(iiif) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or

(iiig) the Maharashtra Chief Minister's Relief Fund during the period beginning on the 1st day of October, 1993, and ending on the 6th day of October, 1993 or to the Chief Minister's Earthquake Relief Fund, Maharashtra; or

(iiiga) any fund set up by the State Goverment of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat; or

(iiih) any Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for the purposes of improvement of primary education in villages and towns in such district and for literacy and post-literacy activities.

Explanation.- For the purposes of this sub-clause, "town" means a town which has a population not exceeding one lakh according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or

(iiiha) the National Blood Transfusion Council or to any State Blood Transfusion Council which has its sole object the control, supervision, regulation or encouragement in India of the services related to operation and requirements of blood banks.

Explanation.-For the purposes of this sub-clause,-

(a) "National Blood Transfusion Council" means a society registered under the Societies Registration Act, 1860 (21 of 1860) and has an officer not below the rank of an Additional Secretary to the Government of India dealing with the AIDS Control Project as its Chairman, by whatever name called;

(b) "State Blood Transfusion Council" means a society registered, in consultation with the National Blood Transfusion Council, under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India and has Secretary to the Government of that State dealing with the Department of Health, as its Chairman, by whatever name called; or

(iiihb) any fund set up by a State Government to provide medical relief to the poor; or

(iiihc) the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants; or

(iiihd) The Andhra Pradesh chief Minister's cyclone Relief Fund 1996; or

(iiihe) the National Illness Assistance Fund; or

(iiihf) the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in respect of any State or Union territory, as the case may be:

Provided that such Fund is-

(a) the only Fund of its kind established in the State or the Union territory, as the case may be;

(b) under the overall control of the Chief Secretary or the Department of Finance of the State or the Union territory, as the case may be;

(c) administered in such manner as may be specified by the State Government or the Lieutenant Governor, as the case may be; or

(iiihg) the National Sports Fund to be set up by the Central Government; or

(iiihh) the National Cultural Fund set up by the Central Government; or

(iiihi) the Fund for Technology Development and Application set up by the Central Government; or

(iiihj) the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under sub-section (1) of section 3 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or

(iv) any other fund or any institution to which this section applies; or

(v) the Government or any local authority, to be utilised for any charitable purpose other than the purpose of promoting family planning; or

(vi) any authority referred to in clause (20A) of section 10; or

The following sub-clause (vi) shall be substituted for the existing sub-clause (vi) in clause (a) of sub-section (2) of section 80G by the Finance Act, 2002, w.e.f. 1-4-2003:

(vi) an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both;

(via) any corporation referred to in clause (26BB) of section 10; or

(vii) the Government or to any such local authority, institution or association as may be approved in this behalf by the Central Government, to be utilised for the purpose of promoting family planning;

(b) any sums paid by the assessee in the previous year as donations for the renovation or repair of any such temple, mosque, gurdwara, church or other place as is notified by the Central Government in the Official Gazette to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States.

(c) any sums paid by the asseessee, being a company, in the previous year as donations to the Indian Olympic Association or to any other association or institution as notified by the Central Government under clause (23) of section 10 for-

(i) the development of infrastructure for sports and games; or

(ii) the sponsorship of sports and games, in India.

(d) any sum paid by the assessee, during the period beginning on the 26th day of january, 2001 and ending on the 30th day of september, 2001, to any trust, institution or fund to which this section applies for providing relief to the vicitms of earthquake in Gujarat.

(4) Where the aggregate of the sums referred to in sub-clauses (iv), (v), (vi), (via) and (vii) of clause (a) and in clauses (b) and (c) of sub-section (2) exceeds ten per cent. of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of ten per cent. of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1).

(5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely:-

(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of section 11 and section 12 or clause (23) or clause (23AA) or clause (23C) of section 10:

Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if-

(a) the institution or fund maintains separate books of account in respect of such business;

(b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and

(c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;

(ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose;

(iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste;

(iv) the institution or fund maintains regular accounts of its receipts and expenditure;

(v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, or is an institution approved by the Central Government for the purposes of clause (23) of section 10, or is an institution financed wholly or in part by the Government or a local authority; and

(vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commissioner in accordance with the rules made in this behalf:

Provided that any approval shall have effect for such assessment year or years, not exceeding five assessment years, as may be specified in the approval.

(5A) Where a deduction under this section is claimed and allowed for any assessment year in respect of any sum specified in sub-section (2), the sum in respect of which deduction is so allowed shall not qualify for deduction under any other provision of this Act for the same or any other assessment year.

(5B) Notwithstanding anything contained in clause (ii) of sub-section (5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five per cent. of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply.

(5C) This section applies in relation to amounts referred to in clause (d) of sub-section (2) only if the trust or institution or fund is established in India for a charitable purpose and it fulfils the following conditions, namely:-

(i)it is approved in termsof clause (vi) of sub-section(5);

(ii) it maintains seperate accounts of income and expenditure for providing relief to the victims of earthquakes in Gujarat;

(iii) the donations made to the trust or institutionot fund are applied only for providing relief to the earthquake victims of Gujarat on or before the 31st day of March, 2003;

(iv) the amount of donation remaining unutilised on the 31st day of March, 2003 is transferred to the Prime Minister's National Releif Fund on or before the 31st day of March, 2003;

(v) it renders accounts of income and expenditure to such authority and in such manner as may be prescribed, on or before the 30th day of June, 2003.

Explanation 1.-An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5).

Explanation 2.-For the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be denied merely on either or both of the following grounds, namely:-

(i) that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of section 11, section 12 or section 12A;

(ii) that, under clause (c) of sub-section (1) of section 13, the exemption under section 11 or section 12 is denied to the institution or fund in relation to any income arising to it from any investment referred to in clause (h) of sub-section (2) of section 13 where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent. of the capital of that concern.

Explanation 3.-In this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature.

Explanation 4.-For the purposes of this section, an association approved by the Central Government for the purposes of clause (23) of section 10 shall also be deemed to be an institution, and every association or institution approved by the Central Government for the purposes of the said clause shall be deemed to be an institution established in India for a charitable purpose.

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Three New Services on Income Tax eFiling Site

Friends,

Income Tax Department is releasing 3 new services on the e-filing website. These are available from the 'Services' menu on the Menu Bar on top. The services are available without requiring any login (and are also available under 'My Account' as well) are:


1. ITR-V receipt status at CPC Bangalore.

Use this query to find out if the ITR-V sent by you has been received in CPC 

or it has been filed using digital-signature.

2. Refund failure status out of refunds issued or to be issued at CPC Bangalore

Use this query to find out if your refund could not be issued due to missing/incorrect mandatory fields or if the refund was returned due to reasons such as address not found, etc. Please note that, if the query does not fetch any details, it implies that either the e-return has not been processed so far, or no refund was due, or refund has been delivered successfully. 

3. Processing status of e-Returns from CPC Bangalore

Use this query to find out if your e-return has been processed at CPC. 

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Delhi Engineering College Recruitment 2011

Friends,

Ch. Brahm Prakash Government Engineering College has advertised for filling up various posts of Professor, Assistant Professor & Associate Professor. These posts are to be filled on contract basis through Walk in Interview. Those who wants to appear in the walk in interview they can read the instructions from the official website.

Professor : 03

Associate Professor : 13

Assistant Professor : 24

Date of Walk in Interview : 24 & 25 September 2011

Time : 9:30 AM to 02:30 PM

Advertisement : http://www.gecdelhi.ac.in/pdf_files/informtion%20for%20walk-in-interviews%20–%20for%20uploading%202011-12.pdf

Details of Walk in Interview, Advertisement, Pay Scale and other information can be downloaded form the official website of Government Engineering College Delhi.

TALLY.ERP 9 TEN TIPS -MAKE EASIER TO USE TALLY ERP 9

Friends,

I have collected some useful tips to run the tally easily and more efficient way .Today,I am publishing 10 tally tips only and publishing other twenty after your response.This tips are for tally.ERP 9 but few tips are also working in earlier version also .All tally Tips are shown with relevant pictures so that it is easy to understand the tips and you can learn it step by step.Due to many picture shown in the post ,this post may load slow in your computer.

Tally Tips - Your Weekly Refresher...!

1. User defined Primary Group

Did you know that you can create your own primary groups in Tally.ERP 9? 

You can create your own Primary (Main) Group under Assets, Liabilities, Income and Expenses. 

To create Main Group, go to Gateway of Tally > Accounts Info > Groups > Create 

The newly created Group in the Report appears as shown.

2. Sub-Ledger concept of Group

Did you know that a group can behave as a sub-ledger in Tally.ERP 9?

Opting to set Group Behaves like a Sub-Ledger to Yes for a particular Group will not explode the sub-groups and ledgers for that group in any report, either

1.        When viewing the report in a detailed format, or  

2.        When viewing the report with the option Expand all levels in Detailed Format.

For example, set Group behaves like a Sub-Ledger for Sundry Debtors and Sundry Creditors groups to Yes. (This is set to ‘Yes’ by default, you may set this option for any other default group or user defined group)

The normal view of a Trial Balance is as given 

Press Alt + F1 for a detailed view.

Press F12: Configure to set Expand all levels in Detail Format to Yes

The Trial Balance displays as shown

 

3. Report Navigation with + & -

Did you know that you can navigate using the + and – keys in a report? 

In display reports of Accounting and Inventory, i.e. Group Summary, Ledger and Stock Item reports, you can

·        Move to different Group/Ledger of your choice by using F4 (Group/Ledger/ Item)

·        Move to the next or previous item within the report by using (+) and (-) respectively

4. Net Debit & Credit Balance

Did you know you can display net balances for a report?

When a Group contains Ledger balances that have Debit as well as Credit balances, you can configure a report to display the Net Balances only in all reports.

Report view with both Debit and Credit balances

To configure for Net Balance Reporting, enable Nett Debit/Credit Balances for Reporting toYes in the Group Creation/Alteration screen.

Report view after configuring for Net Balance Reporting:

5. Master Creation Shortcut Navigation Key 

Did you know that you can use shortcut navigation key while creating masters?

While creating the following Accounting Master and in the Inventory Master, you can use the short cut navigation key to move between the respective Master Creation screen

Sl No	Accounting Masters	Inventory Masters
1	Ledger	Stock Item,
2	Group,	Stock Group,
3	Voucher Type	Godown,
4	Budgets	Voucher Type
5	Currencies etc.,	Unit of Measure, etc.,

For example, after creating a ledger master, press Ctrl + G to move to Group Creation screen directly. Press Ctrl + V to move to Voucher Type Creation master and so on for other masters.

6. Voucher Cancellation

Did you know that you can cancel vouchers in Tally.ERP 9? 

Apart from deleting any voucher, vouchers can also be Cancelled. While using Automatic Voucher Numbering, you can opt to cancel a voucher using Alt + X, to keep the sequence of subsequent voucher numbers intact and information of the common narration.  The cancelled vouchers will not retain Accounting or Inventory Transactions (Useful in Sales Vouchers).  Vouchers with manual numbering or where no voucher numbering is used can also be cancelled. 

Cancela voucher, go to Ledger Voucher screen (Eg. Day Book), select Single or Multiple Vouchers and press Alt + X 

Display of cancelled vouchers

 

A cancelled voucher with the narration and information that the narration being retained is displayed as shown:

7. Add & Insert Voucher

Did you know that you can add or insert a voucher in the Day Book or Voucher Register?

Another useful feature that is available in Tally.ERP 9 is that it enables the user to insert or add a voucher. 

For example, in the Sales voucher Register Report which is displayed below there are two vouchers numbered 3 and 4 for May 04, 2009. 

To create a new voucher or insert a new voucher with sale bill number 4 and change the bill number of the existing voucher to 5.

Select the existing voucher (number 4) and press Alt + I to insert a new voucher.

Press Alt + A to simply add a new voucher after bill number 4

8. Voucher Duplication

Did you know that you can duplicate an existing voucher in Tally.ERP 9?

This is useful when a constant amount is entered across the year or month with the same ledgers being used. To duplicate an existing voucher:

1.        Select the required voucher and press Alt +2.

2.        Make necessary changes to the voucher and save.

9. Setting Credit Limit

Did you know…?

You can set credit limit for Sundry Debtors and Sundry Creditors in Tally.ERP 9. When the outstanding amount exceeds the credit limit, Tally.ERP 9 will not allow any invoice beyond that limit unless modified.

Example: You can set a credit limit of Rs.50000/- for the customer’s ledger and raise one invoice amounting to Rs.30000/-, subsequently you can also try to raise another invoice amounting to Rs. 30000/-

To enable credit limit, set Maintain Budgets and Controls to Yes in F11 > Accounting Features

To set credit limit for the customer:

Go to Gateway of Tally > Accounts Info > Ledgers > Credit Limits > Select the Group inUnder Group (all the ledgers in that group will be listed) > Select Customer and set the Credit Limit

After the first invoice is raised for Rs.30000, try to raise the second invoice for Rs.30000. Here, Tally.ERP 9 will restrict from saving this voucher, as shown:

10. Accounting, Inventory & Related reports

Did you know that you can navigate to any Accounting or Inventory report without navigating the routine menus ….?

You can navigate to any Accounting or Inventory Reports from any report without going through the routine menu navigation.

1.        In Balance Sheet Report press F9: Inventory Report or F10: Accounting Report to access any of the reports listed from the drop-down list.

2.        There is no restriction on the number of instances one can access these reports. 

3.        Press Esc to return back in the order you progressed to different reports.

F9:  Inventory Reports

F10: Accounting Reports

Use F8: Related reports to view related reports for any individual group/ledger analysis.

F8: Related Reports

 

Recovery of Data in Tally

Friends,

Tally is very useful software for accounting purpose. While using Tally there could be sometime we loss data while working. It creates a major problem. Data of Tally is very vital for every user or company. More serious the user is more vital data becomes. In other words we can say more and more dependence on tally needs more and more care of its data. Although tally has provided many ways to protect you data but one way or other due to some human error or system failure we loose our data. Particularly in case of tally it cripples our day today business.

We have to first see why data has got corrupted the ways to recover depends on reason it got corrupted. Here are some tips and tricks which can save you the day. First of all lets see different reasons which can cause data corruption.

Why data gets corrupted ?

The reason could be anyone of following :-

   1. While working on tally power goes off and UPS is unable to give you backup. Next time you would open tally the company in which you were working would get corrupted.

   2. The computer on which you are working is not operative and OS is not working properly. Somebody formatted it !!

   3. You have taken so many backups by copying the tally folder in so many placed that you forgot which was to original one.

   4. You have taken a backup and when you try to restore it your data is washed out.

Solutions:-

Solutions to these problems needs common sense rather than tally expertise. Lets understand some feature and working of tally. Tally provides a backup and restore utility which collects all files of tally company into one file named tbk500.001. This way of tally backup is easier to restore as this one file can be kept save and easily can be restored instead of all files in that folder. If any of the file gets missing or gets corrupted tally data wouldn't work.

In first case when data gets corrupted while working on tally and we are unable to open the company then data can simply rewritten. Come to Company selection menu. Press "Ctrl + Alt + R". Now select the company for re writing. 90% chance is that you problem would be get solved.

In second case when OS system is not working then to recover data you need computer skills and some common sense solutions can get you out of this problem

If windows is not loading then you can try to boot the system in DOS mode. Copy all tally folders and data folders into D drive. If DOS mode is also not working then take out the HDD and connect it with other computer with os system and try to open it. If the disk is ok and without bad sectors then you would be able to open the tally folder. If still it not working then before formatting give it a try with some recovery software or ask your computer hardware expert to recover data folders from drive.

The third case happens when people are running so many versions of tally and all versions work on different directories. More over they take backup by copying folders of data directory instead of taking backup from tally itself. In that case you too can get confused which one is latest and which folder is needed to be restored. In this case just remember the No. of your company in tally. For example if your company No. is 006 then go to search utility of windows and enter 006 in search box and begin search. You would see the list of folders. Now in see the locations of each folder and see the date of last modified or accessed. Choose the latest one and copy that folder in tally's current data directory. You would probably find the right one. One more method can be that you look for folder which has largest amount of data. Just go to each folder right click on the name and select properties. Here you would find the total file size of that folder. The biggest folder would be the current folder.

The fourth case happens you have created somany companies and when you restore the data that current company is not in your older data. This can also happen when data backup you have taken is already corrupted. In this case there is no solutions except you find some other backup which you have taken fortunately and which is good as well. To do some once again you can use search utility and look out for files names as tbk500.001 or what you can do is just type tbk*.*. It would get you all the files on your computer.

Some healthy tips can also save you the day.

    * Take backup on regular basis make it a habit to take backup when ever you have done enough work. The frequency of backup always depends on how much work you do one daily basis or how much work you can afford to do again!!

    * Take backup on the basis of name of days or name of month. If data is high then the backup destination can be like this d:\tallybackup\Monday or d:\tallybackup\Tuesday and so on. In this way you would get seven backups and all backups cannot be corrupted. If data volume is low then backup can be taken as d:\tallybackup\June if you can afford to do one months task in a single streach.

    * Try to make minimum companies. It would save you lots of hassles.

    * There should be only one Tally version and one Tally folder. Too many versions and folders multiplies your work. If you are two versions then try to sum up work in latest version as soon as possible.

    * There must be proper power backup while working on tally. In network environment is a must on all nodes where tally is working.

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Section 80-D of Income Tax for Medical Insurance

Friends,

Today, we will discuss about deduction under section 80-D which covers Medical Insurance. Nowadays life is very hectic. Everyone is in the race to earn more money. In this way proper care for health is being ignored. So there is one way to be aware about your Health i.e. medical insurance. Mediclaim insurance is a must-have for all. It safeguards you and your family from a financial crisis during critical illnesses or accidents. Apart from covering medical expenses, health insurance also offers you access to tax saving schemes. Absence of Medical insurance can wipe out your savings.

Deduction U/s. 80D of the Income Tax Act, 1961 in respect of Medical Insurance Premium (Mediclaim) paid, to keep in force insurance by individual either on his own health or on the health of spouse, dependent parents and children or paid by HUF on the health of any members of the family.

Features of Mediclaim policy

1. Premium based on Age: - As in term insurance, the premium rates will vary among the insurers and will also depend on your age. The older you are, the heftier the premium. For instance, Mediclaim policy from General Insurance Corporation has a fixed premium till 35 years and then it changes in 10-year slabs.

2.    Who is it available to?

    *Individual (resident or non resident, Indian Citizen or foreign citizen):- In case an individual is taking the deduction, the medical insurance policy can be taken in the name of any of the following or jointly in the name of following:

* the taxpayer

* spouse of the taxpayer

* parents :- Parents need not be dependent on the Assessee and parents of spouse are also covered.

* Dependent children (i.e. legitimate or legally adopted children) of the taxpayer: - Children above 18 years, if employed, can not be covered. Male children, if not employed, but a bonafide student can be covered upto age of 25 years. Female children, if not employed, can be covered until the time she is married.


      HUF(Hindu undivided Family may be resident or non resident) :- In case a HUF is taking the deduction, the medical insurance policy can be taken in the name of any member of the family.
  
     

3. Entry Age: This insurance is available to a person between the age of 18 to 59 years.  However, the Policy can be renewed upto the age of 80 years.


a) Children above the age of 3 months can be covered provided parents are covered concurrently and suitable premium is paid. If the child above 18 years is employed or if the girl child is married, he or she shall cease to be covered under the policy. However male child can be covered upto the age of 25 years if he is a bonafide regular student and fully dependent on primary insured. Female child can be covered upto the time, she is unmarried.

b) If the insured has taken continuous Mediclaim insurance policy with us for at least 5 years prior to attaining the  age of 80 years the policy can be renewed beyond the age of 80 upto  the age of 90 years as a special case with the approval of Regional Incharge on case to case basis. The premium chargeable shall be 10% of the premium for 75-80 years age slabs for  proposers above 85 and 20% of the premium for 75-80 age slabs for proposers above 90.

c) No inclusion of family member during currency of policy is permissible except for a new born child between the ages of 3 months to 6 months and newly married spouse within 60 days of marriage.  Otherwise inclusion of family member shall be allowed only at the time of renewal. Prorata premium shall be charged for such inclusion during the currency of the policy for the unexpired period.



4. Sum Insured: Minimum sum insured shall be Rs 50,000/- and can be increased in multiples of Rs 25,000/-upto Rs 5 lacs.  The sum insured must be identical for primary insured and the dependents. However, the children may be covered for 50% Sum Insured as per 4 above.

5.     In addition to deduction u/s, 80C, 80CC and 80CCD,:- This is an additional deduction available which do not include deduction  u/s 80C, 80CCC and 80CCD for which overall limit is Rs. 1,00,000.

6. Partly contribution: If part payment is done by you and part payment by the parent, both can claim deduction to the extent of their contribution subject to maximum allowed but amount should be paid directly to insurance company and paid through mode other than by cash.

7. Payment of Mediclaim Premium out of taxable Income:- The amount must have been paid using the taxpayer’s income chargeable to tax.

8. Mode of payment: The premium may be paid by any mode of payment other than cash. Please note, prior to 1st April 2009, premium payment was required to be done only by cheque. Credit card or other online payment mechanism where not allowed. Now all payment modes except cash payment are accepted.

9. Which Mediclaim Premium is allowed? : - Mediclaim premium paid under Medical insurance scheme of General Insurance Corporation approved by the Central Government, or any other insurer approved by the Insurance Regulatory & Development Authority (IRDA).

10. Things You Must Know Before Buying Health Insurance

* Buy a basic health insurance plan, which  is an indemnity policy that reimburses all the medical costs incurred during hospitalization.

* Buying a health insurance policy for you family from the same insurer could entitle you to a discount of up to 10 per cent of your premium.

* A basic policy pushing up the sum insured by 5 per cent every year that you do not make a claim. If a claim is raised on your policy, the accrued bonus is reduced by 10 per cent till sum insured is reached.

* You could push up basic policy by adding defined benefit plans.

* The plans offered by life insurer come with death cover.

* If you are relying on the medical benefits given by your employer, then during the period between two job, your policy might suffer a break. Buy having medical Insurance plan on your own keep your insured at all times.

* Buy floater plan to cover entire family

* Opt for a cashless plan, keep cashless mediclaim cards at hand

* Ask insurers for premium rates to find the cheapest policy

* Keep an eye on exclusions and inclusions in the policy

* Undergo medical tests, if required

* Buy health insurance even if you have one from your employer.



11.  What is the amount of the deduction?

For Individual

    · Basic deduction: Mediclaim premium paid for Self, Spouse or dependant children. Maximum deduction Rs 15,000. In case any of the persons specified above is a senior citizen (i.e. 65 years or more as of end of the year) and Mediclaim Insurance premium is paid for such senior citizen, deduction amount is enhanced to Rs. 20,000.

    · Additional deduction: Mediclaim premium paid for parents. Maximum deduction Rs 15,000. In case any of the parents covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.

For HUF


      Mediclaim premium paid for any member of the HUF. Maximum deduction Rs 15,000. In case any member of the HUF covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.

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



12. Conclusion:- Medical Insurance plans serves a dual purpose. They protect you from financial crisis during a health emergency or accident and offer you tax saving benefits as well. This encourages people, especially the salaried class to invest in protecting the future of their family while being able to utilise a maximum percentage of their salaries. You are saved from the burden of paying huge medical bills and income tax, with a health insurance policy in hand.



EXAMPLE- 1

1. An individual assessee pays (through any mode other than cash) during the previous year medical insurance premia, out of his taxable income, as under:



(i) Rs 12,000/- to keep in force an insurance policy on his health and on the health of his wife and dependent children;



(ii) Rs 17,000/- to keep in force an insurance policy on the health of his parents.



He will be allowed a deduction of Rs 27,000/- (Rs. 12,000/- + Rs. 15,000/-) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs 29,000/- (Rs.12,000/- + Rs.17,000/). Whether the parents are dependent or not, is not a consideration for deciding the deduction under the new provisions.

Further, in the above example, if cost of insurance on the health of the parents is Rs 30,000/-, out of which Rs 17,000/- is paid (by any non-cash mode) by the son and Rs 13,000/- by the father ( who is a senior citizen), out of their respective taxable income, the son will get a deduction of Rs 17,000/- ( in addition to the deduction of Rs 12,000/- for the medical insurance on self and family) and the father will get a deduction of Rs 13,000/-.



EXAMPLE 2

An individual assessee pays through credit card during the previous year health insurance premium as under:


   1. Rs. 12,000 to keep in force an insurance policy on his health and on the health of his wife and children

   2. Rs. 17,000 to keep in force an insurance policy on the health of his parents.

     

Under the proposed new provisions, he will be allowed a deduction of Rs. 27,000 (Rs. 12,000 + Rs. 15,000) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs. 29,000 (Rs. 12,000 + Rs. 17,000). Whether the parents are dependent or not, is not a consideration for deciding the deduction under Section 80D.



EXAMPLE- 3

Question:- In the last budget, the finance minister announced exemptions for Mediclaim charges paid for senior citizens. However, I am not sure if it has yet been notified and effective. I need to take medical insurance for both my parents, who are senior citizens. I would appreciate if you can let me know.



Answer:- Earlier Sec 80D deduction in respect of medical insurance premium was Rs 15,000 for an individual and Rs 20,000 for a senior citizen. However, from this year, if someone were to buy medical insurance for his parent/s, an additional deduction of Rs 15,000 (over and above Rs 15,000) will be available. If such parent/s were senior citizen, the additional deduction would be Rs 20,000. So a person insuring himself, his spouse, children and parents could potentially get a deduction of Rs 35,000. This provision is effective from 1.4.08.

Internet Protocol Version 6 (IPv6) by Dec. 2011

The Government has set a deadline of December 2011 for major telecom operators to adopt the next generation protocol for Internet services in  the country. Called Internet Protocol  version 6 (IPv6), the new standard will offer improved address space, quality of service and data security capabilities.

IPv4, the existing version of address platform is already overburdened in India with 18.4 million registered addresses and is expected to exhaust the available space globally by March 2012 as consumers increasingly use broadband and net services on mobile devices.

All Central and State Government Ministries and Departments, including its PSUs, will switchover to IPv6 services only by March 2012.

IPv6 is expected to remove the limitations pertaining to IP addresses that are prevalent in the current regime.

The Government has also decided to form an IPv6 task force in public-private partnership (PPP) mode for timely implementation. This was disclosed by the Minister of Communications and Information Technology, Mr A. Raja, while releasing the National IPv6 Deployment Roadmap.

The important issue of transition from IPv4 to IPv6 in the country has emerged has a critical concern for quite some time in view of the increasing demand for IP addresses and global scarcity of free space on IPv4 platform. IPv6 has 128 bits as compared to the limited addressing space of only 32 bits in IPv4.

Wrong Debits through ATM's - Resolve within 7 day Says RBI

Friends,

It's a good news for the users who use their ATM's frequentally. While useing ATM there are some problems due to some technical faults and user have to suffer for this. Now RBI has directed all banks to resolve customer complaints in 7 working days from date of complaint. Earlier the period was fixed 12 days.This notification is applicable from 01.07.2011.

Most of the bank customers like us is not aware of this fact and visiting banks many times for corrective action but every time bank employees told him to visit another day .so this directive is helpful for customer and they may quote this directive in their application .

Money life has posted a case where bank has paid around six thousand for not taking corrective action for a transaction of 1000 Rs only . so note this circular and we wish you happy Banking

Reconciliation of failed transactions at ATMs 

Madam / Dear Sir

Please refer to our letter DPSS No. 711 / 02.10.02 / 2008-2009, 1424 / 02.10.02 / 2008-2009 and 101 / 02.10.02 / 2009-2010dated October 23, 2008, February 11, 2009 and July 17, 2009 respectively on the captioned subject.

2. Reserve Bank has been continuously monitoring the implementation of various directions by the banks. Based on a review of the developments and with a view to further improve the efficiency of operations, it has been decided as under :-

a. The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to 7 working days from the date of receipt of customer complaint. Accordingly, failure to recredit the customer’s account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer @ Rs. 100/- per day by the issuing bank.

b. Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing bank within 30 days of the date of the transaction.

c. The number of free transactions permitted per month at other bank ATMs to Savings Bank account holders shall beinclusive of all types of transactions, financial or non-financial.

d. All disputes regarding ATM failed transactions shall be settled by the issuing bank and the acquiring bank through the ATM system provider only. No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provider is permissible. This measure is intended to bring down the instances of disputes in payment of compensation between the issuing and acquiring banks.

3. The directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).Non-adherence to the provisions of this circular shall attract penalty as prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).

4. This directive shall come into effect from July 01, 2011

5. Banks may widely publicise these changes at all ATM locations and by individual intimation to customers.

6. Please acknowledge receipt.

Yours faithfully
G Padmanabhan

Chief General Manager

Notification No : DPSS.PD.No.2632 / 02.10.002 / 2010-2011