India Tax Point

The New Scheme and Procedure of TDS (Form 16/16A) for Assessment Year 2011-2012

2011-10-12T04:04:00.000-07:00

The obligation to deduct tax at source is upon the person responsible for paying the income/amount which is subject to TDS. Therefore such person i.e. payer has to follow the procedure for deducting the tax. The main responsibilities and procedure of TDS may be mentioned as under:

1. W.e.f. 1-10-2004, the payer has to apply for tax deduction and collection account number (TDCAN) IN Form No. 49B. Prior to 1-10-2004, the assessee had to apply for separate tax deduction account number (TAN) and tax collection account number (TCAN). Where the payer has already been allotted TAN or TCAN, he need not apply for TDCAN.

2. He is to deduct tax from the income/payment mentioned in the various sections i.e sections 192 to 196D.

3. The amount so deducted should be deposited in challan No. 281 within the requisite time to the credit of Central Government. Separate challans should be used to deposit tax deducted under each section and the correct nature of payment code in the relevant column is the challan should be indicated.

4. Tax is to be deducted at the basic rates prescribed under various sections. No surcharge, Education Cess or Secondary and Higher Education Cess(SHEC) is to be added to such basic rate except in he following cases:

(a) Tax deduction form payment of salary, whether the recipient is resident or non-resident. In this case Education Cess and SHEC has to be added to the basic rate.

(b) Tax deduction from payment/credit of any sum (other than salary) to a non-resident other than company. In this case also Education Cess and SHEC has to be added to the basic rate.

(c) Tax deduction from payment/credit of any sum to a foreign company. In this surcharge; Education Cess and SHEC shall have to be added to the basic rate. Surcharge @ 2% (2.5% for A.Y. 2011-12) shall be added only when the amount paid/credit exceeds Rs. 1 crore. As per section 206AA, if PAN is not provided, the rate of TDS shall be the normal rate prescribed or 20% whichever is higher.

5. Payee should be issued certificate of tax deduction at source on or before certain specified date.

6. Lastly, the payer should prepare such statements for such period as may be prescribed and file the same with the prescribed income-tax authority or the person authorized by such authority in such form and verified in such manner as may be prescribed.

Official Notification of No Income Tax Return Up to 5 Lakhs Salaried Person

2011-10-12T03:53:00.000-07:00

AN INDIVIDUAL HAVING INCOME NOT EXCEEDING RS. 5 LACS FROM SALARIES/OTHER SOURCES FOR A.Y. 2011-12 IS NOT REQUIRED TO FILE RETURN U/S 139(1)

NOTIFICATION NO. 36/2011 [F. NO. 142/09/2011 (TPL)], DATED 23-6-2011

In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, namely :—

Class of Persons

1. An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,—

A. "Salaries";

B. "Income from other sources", by way of interest from a savings account in a bank, not exceeding ten thousand rupees.

Conditions

2. The individual referred to in para 1,—

i. has reported to his employer his Permanent Account Number (PAN);

ii. has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;

iii. has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;

iv. has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;

v. has no claim of refund of taxes due to him for the income of the assessment year; and

vi. has received salary from only one employer for the assessment year.

3. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.This notification shall come into force from the date of its publication in the Official Gazette.

Do you know, who are Exempted and not Exempted from IT return submission for Assessment Year 2011-2012

2011-10-12T03:48:00.000-07:00

In the interest of public demand, I clarified the following about IT Return submission for Assessment Year 2011-12. Most of employee assumed that, whose Income below 500000.00 they exempt from Income Tax Deduction from the Fin. Year 2011-12, but this thinking is totally worng. Regarding this the Income Tax Department had issued official notification to file Income Tax Return (salaried person) with a few conditions. As per the Income Tax Department notification No. 36/2011, a employee whose Taxable income not exceed Rs. 5 Lakhs (Five Lakhs) in annual, they exempt to file Income Tax Return. The following conditions are clarify/solve your problems:

Who are Exempted from submission of IT Return for A. Y. 2011-12 :

This exemption is available to Individual assessee only (He may be resident or not).
Exemption is available for Assessment year 2011-12.
Total Income(after deduction 80C to 80U) of Individual must be up to Five Lakh Rupees only.
Income must be earned from Salary and/or Saving Bank Interest up to Rs 10000/- . Pension is also covered under salary head.
Individual must have reported his pan to his employer.
He has Earned salary only from one employer during the year.
He has reported his income from saving Bank Interest to his employer for TDS deduction purposes.
Employer has deducted the tax on his Full income,salary plus interest {if any},and tds has been deposited in Govt account by the employer.
No refund is Due to assessee.
Individual has received Form 16 From the employer ,which mention PAN, Income detail and Tax deducted and deposit detail.

Who are not exempted from submission of IT Return for A. Y. 2011-12 :

If His Total taxable income after deduction u/s 80C to 80U is more than 5 (five) Lakh rupees.
If refund is due to Him.
If his total income includes any one of following Incomes

Income from House property Including minus Income from interest on House Loan.
Income from Business/profession;
Income from capital gain;
Income from Interest other than Interest from saving bank up to 10000.Suppose you have earned interest from FDR then you can not claim exemption from return filing;

Saving Bank interest is more than 10000 rupees and;
Any other Income under "Income from other source.

If He has not offered his Saving Bank interest income to his employer for tax deduction.
If he has discharged His tax liability through advance tax or self assessment challan.
If he has received salary from two employers during the year.
If he has not submitted his PAN to his employer.
If Form 16 has not been issued to Him by His employer.
If notice u/s 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income
If assessment year is other than 2011-12.

Official Notification ( Click Here )

What is procedure to verify online TDS Certificate ?
NSDL has recently provided a online facility to our Taxpayee for verification of TDS Certificate Form No. 16 or Form No. 16A which is issued by the deductor without mentioning e-TDS/e-TCS Acknowledgement or any Receipt No. regarding relating to this. The CBDT has issued circular No. 3/2011 dated 13th May, 2011 as per this circular generation of Form No. 16 or 16A with NSDL is mandatory for Companies and Bank. To download complete circulate of CBDT.

Online Service to verify your TDS Certificate ( Click Here )

Know, How to submit your IT Return?
Free Income Tax Return preparation software is Now available from NSDL for submission you ITR-1,ITR-2,ITR-3,ITR-4,ITR-5,ITR-6 of Financial year 2010-11. These RPU are excel based and free for download and Unlimited use. As these software are provided by Income tax department, so it authentic software. From these e filing software you can generate Income Tax return for financial year 10-11 (Assessment year 2011-12). E_filing in Audit cases is mandatory since last year. Further for companies digital signature is also mandatory. Last date to file return in non audit cases for financial year 2010-11 is 31.07.2011 and for Audit case due date is 30.09.2011.

India Tax Point: Income Tax Slabs for A.Y 2011-2012

2011-10-12T03:26:00.000-07:00

India Tax Point: Income Tax Slabs for A.Y 2011-2012

India Tax Point: Submit Your Income Tax Return Within The Time & Save Money !

2011-10-12T03:24:00.000-07:00

India Tax Point: Submit Your Income Tax Return Within The Time & Save Money !

Submit Your Income Tax Return Within The Time & Save Money !

2011-10-12T03:16:00.000-07:00

Simply put, Income Tax refers to the direct tax paid on income, to the government, within given financial year (April-2010 - March-2011).

When the total income of a person from all sources of income exceeds the maximum amount permissible which is not chargeable to income-tax by the government, then that person is liable to file the Income Tax Return. Section 139(1) of the Income Tax Act was amended a few years back with a view to bring a larger number of persons in the tax net. Now if any person satisfies any one of the following six conditions:

* owns a vehicle
* occupies a specified floor area of an immovable property
* incurs expenditure for himself or for any other person on foreign-travel
* subscribes to a telephone
* subscribes to a Credit Card
* is a Club member

then he/she is required to file an Income Tax Return.

The slabs to file Income Tax Returns vary, depending upon the total income earned during a year and the various exemptions for which the individual/entity is eligible for. In thecase of an assessee earning income primarily from salary, the due date for filing the IncomeTax Return is normally 30th June of the assessment year, unless extended by the Income TaxDepartment.

Individuals can file their Income Tax Returns by filling the requisite forms ITR 1, ITR2, ITR 3 or ITR 4.

Download ITR Form with Insturctions:

Income Tax Slabs for A.Y 2011-2012

2011-10-12T02:51:00.000-07:00

Friends, At the end of every Financial Year, each and every one who paid tax i.e. Tax Payee Persons calculating the income and tax liability their on, in each year. Tax Payee have project to invest money in right funds, they see annual budget passed by Cabinet Govt. and declared Income Tax Slab by Finance Minister. The government has brought about relief for the common man by widening this tax slab from the previous years. Here is a look into the slabs for the current financial year to help you prepare your investments and income, and to be able to file your tax returns accurately in the following assessment year.

Basic Tax Jargons

Financial Year, Assessment Year and Previous Year, do these commonly used income tax jargons often confuse you? This is what they mean.

1. Financial Year (FY) – Duration of one year between 1st April to 31st March of the following year, in which all financial information are reported. The current financial year is 1st April 2010 to 31st March 2011.

2. Assessment Year (AY) – The income of a particular financial year is assessed in the following financial year, which is known as the assessment year. For the current financial year, income will be assessed in the assessment year 2011-2012.

3. Previous Year (PY) – The financial year preceding the assessment year, the income of which is assessed in the following assessment year. Assessment year 2011-2012 will assess income for previous year 2010-2011.

Income Tax Slabs

With the upward revision of the tax slabs, there would now be more savings for the consumers. Basic tax exemptions limits have been retained; however, the brackets have been broadened. Below are the income tax slabs and rates applicable for the current financial year 2011-12 and assessment year 2012-13.

INCOME TAX SLABS
ASSESSMENT YEAR 2012-13
Taxable Income	Tax Rate
Up to Rs. 180000 (Men) Up to Rs. 190000 (Women) Up to Rs. 250000 (Sr. Citizen age - 65 yrs.)	NIL NIL NIL
From Rs. 180000 to 500000 (Men) From Rs. 190000 to 500000 (Women) From Rs. 250000 to 500000 (Sr. Citizen age - 65 yrs.)	10% 10% 10%
From Rs. 500000 to 800000 (Men) From Rs. 500000 to 800000 (Women) From Rs. 500000 to 800000 (Sr. Citizen age - 65 yrs.)	20% 20% 20%
Above Rs. 800000 (Men) Above Rs. 800000 (Women) Above Rs. 800000 (Sr. Citizen age - 65 yrs.)	30% 30% 30%
* Increase in base income tax slab of men and senior citizens. * Tax exemption limit remains the same i.e Rs. 20,000 on investment in tax saving Infrastructure bonds. * Senior citizen age reduced from 64 years to 60 years. * People above 80 years of age to be included in the newly introduced 'Very Senior citizen' category.

Pay tax online !