Latest Updates of Income Tax,TDS by PRAVEEN KUMAR

PF Witdrawal before 5 Years now Taxable, TDS on withdrawal from PF wef 1st June 2015

noreply@blogger.com (Anonymous) — Thu, 4 Jun 2015 16:40:00 +0530

Employees Provident Fund Organisation

(Ministry of Labour, Govt. of India)

Bhavishya Nidhi Bhawan,

14- Bhikaji Came Place, New Delhi – 110066

No. WSU/6(1)2011/IT/Vol-IV/5931 Dated- 21.05.2015

To,

All Addl. CPFC (Zones)

All RPFC/OIC of ROs/SR0s.

Sub: Amendment in Section 192A of the IT Act, 1961- Instructions or deduction of TDS on withdrawal from PF.

Ref: Head Office circular of even number dated 16,03.2015.

Sir/Madam,

The Finance Act, 2015 (20 of 2015) has Inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The Provision Shall Take effect from 01st June 2015. A copy of the said provision is enclosed for information.

2. Income Tax should be deducted at source (TDS) at the following rates if at the time of payment of the accumulated PF balance is more than or equal to Rs. 30,000/-, with service of less than 5 years:-

a) TDS will be deducted at 10% provided PAN is submitted. In case Form No. 15G or 15H Is submitted by the member, then no TDS shall be deducted.

b) TDS will be deducted @ maximum marginal rate (i.e. 34.608%) if a member fails to submit PAN (and no Form No 15G or 15H).

3. TDS shall not be deducted In respect of the following cases/-

Transfer of PF from one account to another PF account.
Termination of service due to ill health of member, discontinuation/contraction of business by employer, completion of project or other cause beyond the control of the member.
If employee Withdraws PF after a period of five years of continuous service, including service with former employer.
If PF payment is less than Rs, 30,000/- but the member has rendered service of less than 5 years.
If employee withdraws amount more than or equal to Rs. 30000/-, with service less than 5 years but submits Form 15G/1511 along with their PAN

A flow-chart is appended for understanding the implications of the amended provisions in the Income Tax Act. 1961.

4. Kindly take note that TDS is deductible at the time of payment of provident fund in Form No. 19. Form No. 15H is for senior citizens (60 years or more) while Form No. 15H is for individuals having no taxable income. Form 15G and 15H are self-declarations and may be accepted as such in duplicate. Form 15G and 15H may not be accepted if amount of withdrawal is more than Rs. 250000/- and Rs. 300000/- respectively. Members shall quote PAN in Form No. 15G/15H and in Form No. 19. The field offices may purchase pre-printed Form No. 15G & 15H to assist the members in filling up Form No. 19.

5. The process of authorization of Form No. 19 shall be as per the existing system. However, wherever TDS has to be deducted @ 10%, the same may be approved on Form No. 19 by the APFC (Accounts). Wherever TDS has to be deducted @ 34.608%, the same may be approved on Form No. 19 by a RPFC level officer. These instructions shall apply in initial stages of implementation of the amended income tax provisions. Since the members may not be aware of the new provisions, therefore it shall be responsibility of SSA (Accounts) to communicate the same to the member on telephone and record the same in Form No. 19 to submit PAN, Form No. 15G/15H, if applicable. A system generated statement of Tax Deducted at Source (TDS) may invariably be sent to the member.

6. Members who have tendered continuous service of 5 years or more, including service with former employer, shall not be required to submit PAN and Form No. 15G/15H along with Form No. 19. Similarly, members whose service has been terminated due to ill health, contraction or discontinuation of business of the employer or other causes beyond the control of the member, shall not be required to submit PAN, Form No. 15G/15H alongwith Form No. 19. In such cases, no income tax (TDS) shall be deducted in terms of Rule 8 of Fourth Schedule to the Income tax Act, 1961.

7. The field offices shall deposit the Tax Deducted at Source (TDS) and returns thereof by 7^thof the following month. The existing TAN number obtained the respective offices may be used to deposit tax to the local income tax authority. The in-house responsibility for deposit of tax and returns thereof shall lie with the Drawing and Disbursing Officer (DDO) as per the existing system. The concerned officers and staff may be given an in-house training for implementation of new provisions and RPFCs may engage CAs, who are on our panel.

8. The above should be made applicable with effect from 01-06-2015 and all steps should be taken before hand such as procuring copies of Form No. 15G and 15H. In case of any clarification, the same may be escalated to the head Office.

Yours faithfully

(Sanjay Kumar)
FA&CAO

Source : EPFO

Filing of online return for 2nd quarter of 2014-15 – extended till 17th November 2014

noreply@blogger.com (Anonymous) — Tue, 11 Nov 2014 17:56:00 +0530

GOVERNMENT OF NATIONAL CAPITAL
TERRITORY OF DELHI
DEPARTMENT OF TRADE AND TAXES
(POLICY BRANCH)
VYAPAR BHAWAN, I.P.ESTATE, NEW DELHI-110 002
No.F.7(420)/VAT/Policy/2011/PF/482-488 Dated:
10/11/2014
CIRCULAR NO. 16 of 2014-15

Sub: Filing of online return for 2nd quarter of 2014-15 – extension of period thereof.

In partial modification to this department’s Circular No.14 of 2014-15 on the subject cited above, and in
exercise of the powers conferred under Rule 49A of the Delhi Value Added Tax Rules, 2005, I, Sanjeev
Khirwar, Commissioner, Value Added Tax, do hereby extend the last date of filing of online/hard copy of
second quarterreturn for the year 2014-15, in Form DVAT-16 ,DVAT-17 and DVAT-48 along with required
annexures/enclosures to 17/11/2014.

However, the tax due shall continue to be paid in the usual manner as per the provisions of section 3(4) of the Delhi Value Added Tax Act, 2004. The dealers filing the returns through digital signature need not be required to file hard copy of the return/Form DVAT-56.

(Sanjeev Khirwar)
Commissioner, Value Added Tax
No.F.7(420)/VAT/Policy/2011/PF /482-488 Dated: 10/11/2014

Full Official Copy
http://dvatonline.gov.in/Docs/Circulars/205006.pdf

Tax Treatment of Various Forms of Salary (Useful Info.)

noreply@blogger.com (Anonymous) — Thu, 30 Oct 2014 16:42:00 +0530

Advance salary
Advance salary received by an employee is taxed in the year of receipt. The rule behind this is the basis of taxability of salary,i.e., salary is taxed on due or receipt basis, whichever is earlier. However, an employee can claim relief under section 89 in respect of advance salary.

Arrears of salary
Arrears of salary received by an employee are taxed in the year of receipt if the same were not taxed earlier on due basis. However, an employee can claim relief under section 89 in respect of arrears of salary.

Bonus
Bonus received by an employee is charged to tax in the year of receipt. Relief under section 89 can be claimed in respect of arrears of bonus received during the year.

Fees or commission
Fees or commission received by the employee from the employer are charged to tax as salary income. Commission will be taxed as salary income, irrespective of the fact that it is received as fixed monthly amount or is received as a percentage of any particular item like turnover achieved by the employee.

Salary in lieu of notice period
Salary in lieu of notice period is charged to tax on receipt basis, i.e., it is charged to tax in the year of receipt.

Gifts received from the employer
Any voluntarily gift received by the employee from the employer is charged to tax as salary income (perquisite). However, non-monetary gifts are exempt upto Rs.5,000. If gift has no relation to the service rendered by the employee, then the same can be charged to tax under the head “Income from other sources”.

Pay for extra work
If an employee receives any payment in respect of extra work done by him then the same is charged to tax under the head “Salaries”. In other words, remuneration received for extra work will be charged to tax as salary income.

Due date for Filing Income Tax Return has been extended upto 30th November, 2014 for the AY 2014-15.

noreply@blogger.com (Anonymous) — Wed, 29 Oct 2014 18:58:00 +0530

Reminder :-
CBDT extended the “due-date” for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the AY 2014-15, subject to payment of interest u/s 234A ,in case of an assessee:-
a) who is required to file his return of income by 30th September, 2014 as per Explanation 2(a) to Sec 139(1) of the Income-tax Act, 1961 and
b) is also required to get his accounts audited under section 44AB of the Act or is a working partner of a firm whose accounts are required to be audited under section 44AB of the Act

[Refer Order u/s 119 dated 26/09/2014]

DIN to be mentioned with Director's Signature - Mandatory w.e.f. 1st April 2014

noreply@blogger.com (Anonymous) — Mon, 21 Jul 2014 13:11:00 +0530

Now, Director’s name & DIN (Director Identification Number) has to be mentioned with their signature on all the documents to be signed in the capacity of director.

PENALTY: -

Company and every officer of the company who is in default or such other person shall be punishable with fine which may extend to Rs. 10,000/- and where the contravention is continuing one, with a further fine which may extend to Rs. 1,000/- for every day after the first during which the contravention continues.

Sec.158 of Companies Act 2013 (effective from 1.4.2014) which is corresponding to Sec.266F of CA 1956 reads as under: "Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director." Hence we will have to mention DIN with the names of directors at all applicable places e.g. various returns, registers, minutes, annual report, letters to ROC, all documents to be filed with ROC, petitions to be filed with CLB/RD etc.

Read more at: http://www.caclubindia.com/forum/din-to-be-mentioned-with-name-of-director-everywhere-289448.asp#.U8zDp0A3f1A

Sec.158 of Companies Act 2013 (effective from 1.4.2014) which is corresponding to Sec.266F of CA 1956 reads as under: "Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director." Hence now we will have to mention DIN with the names of directors at all applicable places e.g. various returns, registers, minutes, annual report, letters to ROC, all documents to be filed with ROC, petitions to be filed with CLB/RD etc.

A valid Email ID and Mobile Number to be Registered/Updated on the E-Filing Website of the Income Tax Department

noreply@blogger.com (Anonymous) — Fri, 11 Jul 2014 12:35:00 +0530

A valid Email ID and Mobile Number to be Registered/Updated on the E-Filing Website of the Income Tax Department

A valid Email ID and Mobile Number has to be registered/updated on the e-filing website of the Income Tax Department so that direct communication with taxpayer can be possible. For details, taxpayers can log on to:https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/Update_Contact_Details.pdf)

The Department will send separate One Time Passwords (OTP) also referred as PIN on the mobile and email provided by the taxpayer. The OTPs have to be entered by the taxpayer after logging into their e-filing account to authenticate the same. The OTPs will remain valid for 24 hours within which the taxpayer has to complete the process. For ‘Foreign/ NRI’ taxpayers, the OTP validation of the email ID would be sufficient.

Validation of email and mobile numbers has been introduced to facilitate taxpayers as in many cases incorrect emails and mobile numbers have been provided and taxpayers did not receive important communication from the Department. Further, it has been observed that in many cases taxpayers are not able to reset their password since the new temporary password from the Department may be sent to their registered email which may be different from the taxpayer’s personal email, e.g. email of their intermediary.

This is a one-time process to validate the mobile number and email ID. However, whenever the taxpayer changes the Mobile Number or email ID in their Profile, the process will be repeated to ensure that the particulars provided are correct. Further, this validation will ensure that Department can send an OTP for resetting the password used for Login in case the taxpayer has forgotten the password.

One mobile number or email ID can be used for a maximum of 10 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members and related business concerns (not exceeding 10 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department.

The taxpayer can enter any other person’s email or mobile number in addition, as a Secondary Contact (without any restriction on the number of user accounts linked as a Secondary Contact). Using “Profile Settingsà My Profile” the taxpayer can select to include the Secondary Contact to also receive emails, alerts etc.

It is advised that the emails and SMS from the Income tax Department may be included in the ‘safe list’ or ‘white list’ to prevent the communications from the Department from being blocked or rejected or sent to Spam folder. Taxpayers are also advised not to share their user-id and password of their e-filing account with others to prevent un-authorized access.Taxpayers can reset their password using the 'Forgot Password?' link while logging in to their e-filing account and by providing the necessary details.

The Department requests the cooperation of all taxpayers for completing this validation process at the earliest for a smooth and convenient return filing process

Source : http://pib.nic.in/newsite/erelease.aspx?relid=106084

(Budget 2014-15) - Income Tax exemption limit raised to Rs 2.5 Lacs and investment ceiling hiked to Rs 1.5 Lacs - Thanks FM

noreply@blogger.com (Anonymous) — Thu, 10 Jul 2014 14:36:00 +0530

Here are the few key highlights of Union Budget 2014-15:

Personal tax exemption limit raised to Rs 2.5 lakh from current Rs 2 lakh for taxpayers below 60 years

Senior citizens' tax exemption limit hiked from Rs 2.5 lakh to Rs 3 lakh

No change in surcharge for corporates, individuals

Education Cess to stay at current 3%

Investment limit under Section 80C hiked to Rs 1.5 lakh from current Rs 1 lakh

Exemption on housing loans interest on self-occupied property increased from Rs 1.5 lakh to 2 lakh,

Extended additional tax incentive on home loans shall be provided to encourage people, especially the young, to own houses.

Will not change rules on retrospective taxation, All pending cases of retrospective tax for indirect transfers to be examined by a high-level committee before action is taken

EPFO to launch the “Uniform Account Number” Service for contributing members .

Government to print currency notes with Braille like signs for visibly challenged persons.

Introduction of uniform KYC norms and inter-usability of the KYC records across the entire financial sector.

Introduce one single operating demat account

Kissan Vikas Patra (KVP) to be reintroduced.

A National Savings Certificate with insurance cover to provide additional benefits for the small saver.

Govt approves minimum monthly pension of Rs 1,000 per month under EPS-95 scheme run by EPFO

Official Source : www.pib.nic.in

Quick Links Union Budget 2014-15

Procedure for Pan Allotment Process to Undergo a Change with Effect from 3rd February, 2014

noreply@blogger.com (Anonymous) — Mon, 27 Jan 2014 16:14:00 +0530

The procedure for PAN allotment process will undergo a change with effect from 03.02.2014. From this date onwards, every PAN applicant has to submit self-attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

Service Tax Return (ST-3) for the period April -Sep 13 is now available for e-filing in both offline /online version- last date of filing is 25th Oct, 2013

noreply@blogger.com (Anonymous) — Tue, 15 Oct 2013 11:02:00 +0530

Service Tax Return (ST-3) for the period April -September' 13 is now available in ACES for e-filing by the assesses in both offline and online version. The last date of filing the ST-3 return for the said period is 25th October, 2013. The assesses can file return either online or use the offline utility by downloading the latest version from http://acesdownload.nic.in/ or from 'DOWNLOADS' Section of ACES website. For details on how to e-file in ACES or any further information/assistance, assessees may read the Instructions given in the return form and the FAQs under 'Help' Section of the ACES website http://www.aces.gov.in/ (https://www.aces.gov.in) or contact their jurisdictional Service Tax Officer.

Last Date for filing Income Tax return was 31.07.2013 (A.Y. 2013-14) but you can still file your Income Tax Return by 31.03.2014 (Know How)

noreply@blogger.com (Anonymous) — Wed, 7 Aug 2013 11:34:00 +0530

As you may know that Last Date for filing Income Tax return was 31.07.2013 (A.Y. 2013-14) but you can still file your Income Tax Return by 31.03.2014 (Know How)

The last date for filing of Income Tax return for the Financial Year 2012-13 (Assessment Year 2013-14) was 31st July 2013. One should file its return before this date.

But “AAM AADMI” (an layman) don't know that the income-tax (I-T) department allows you to file your returns even after the July 31 deadline expires

you can file till March 31, 2014 with some restrictions if one misses the deadline :

1) YOU CAN'T REVISE RETURNS :

If you miss the deadline, you will not be able to revise your returns. But if you file your returns by this deadline and later realize that you need to revise your returns, you get time till two years from the end of financial year or assessment year, whichever is earlier.

2) YOU CAN'T CARRY FORWARD LOSSES :

As per Income Tax rules permit you to carry forward losses to the next assessment year. But you can't do so if you miss the deadline.

3) PAY EXTRA TAX / INTEREST :-

· Where return of income is filed after the due date, interest u/s 234A will be payable.

· But if there is already tax has been deducted from the income of the assessee or advance tax has been paid by the assessee and there remains no tax to be paid after such T.D.S or advance tax then no interest is levied u/s 234A for filing the return after the due date.

It is Also Very Important to note that a penalty of Rs 5000 may be imposed u/s 271F if the return of income is not filed within the end of the relevant assessment year. e.g. such penalty is imposable if return for Assessment Year 2013-14 is not filed by 31st March 2014.

So no need to panic if you miss the 31st July Deadline, you can still file your returns on or before 31^st March 2014 (for. Financial Year 2012-13) i.e.. Assessment Year 2013-14.

:-)

Related Post :

As You Know that Last Date for filing Income Tax return was 31.07.2011 (Ay 2011-12) but you can still file your Income Tax Return by 31.03.2012 (Know How)