SIMPLE TAX INDIA

VALUATION OF PERQUISITES - MOTOR CAR AMENDED

noreply@blogger.com (RAJA BABU) — Fri, 27 Jan 2012 15:40:00 +0000

After abolition of the FBT tax from Financial year 2009-10 ,many perks are again taxable in the hands of the employees again .Car facility is one of the them .There is always a confusion among the employer as well as in the employees that how to value the facility of car provided to the employee . Income tax rules has provided the method to value such perks .I have summarized the...

EMPLOYER CAN ADJ LOSS ON LET OUT HOUSE ALSO WHILE CALCULATING TDS ON SALARY

noreply@blogger.com (RAJA BABU) — Fri, 27 Jan 2012 15:27:00 +0000

I have a query related to tax deducted at source from Salary (Sec 192 of Income Tax). While deducting income tax from the salary of an employee, Employer is required to adjustment losses on House property only. My query is related to adjustment of house property losses in Salary income and maximum amount of house property losses to be considered, if any. Query 1:- For House property losses,...

Valuation of Medical facilities to salaried person.

noreply@blogger.com (RAJA BABU) — Fri, 27 Jan 2012 15:26:00 +0000

whether the medical reimbursement given to an employee against medical bills submitted by them for Rs. 15000/-(maximum limit) is it taxable or does it have any effect on the gross income of an employee? Is there any exemption to this amount? Whether to take this income of any employee into account while calculating Income Tax while preparing Form 16.? Also if the employee claims...

Tax benefit on FD for shorter period may be announced in new BUdget

noreply@blogger.com (RAJA BABU) — Fri, 27 Jan 2012 06:20:00 +0000

At present, individuals can claim tax exemption under Section 80C of the Income Tax Act for parking money in bank deposits only for thos that come with a five-year tenure or more. A five year lock-in condition means that the investor cannot withdraw the deposits before the end of five years. This usually acts a disincentive despite the tax break, especially when there are more liquid options...

TUITION FEES PAID FOR CHILDREN U/S 80C-FAQ

noreply@blogger.com (RAJA BABU) — Thu, 26 Jan 2012 15:15:00 +0000

Today we will discuss important points regarding deduction available for payment of tuition fees .we try to cover each and every aspect on the issue ,if any left ,or you have different opinion than of us ,please record in comments. Relevant part of the section 80c is reproduced here under. "(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of...

Higher Education Loan Deduction 80E on son's/dependent eduction.

noreply@blogger.com (RAJA BABU) — Thu, 26 Jan 2012 15:11:00 +0000

In This post we will discuss issue relating to deduction u/s 80E for eduction loan for higher studies.We will try to cover all point relating to eduction loan ,but if any left or you have a different opinion than us ,you can record it in comment section given below. relevant clause of section are reproduced hereunder for ready reference : 80E. (1) In computing the total income...

Valuation of the perquisite of Rent free accommodation

noreply@blogger.com (RAJA BABU) — Thu, 26 Jan 2012 14:30:00 +0000

Accommodation :- For purpose of valuation of the perquisite of unfurnished accommodation, all employees are divided into two categories: (I) Central Govt. & State Govt, employees; and (ii) Others. For employees of the Central and State governments the value of perquisite shall be equal to the licence fee charged for such accommodation as reduced by the rent actually paid by the...

Food coupon/ meal voucher valuation / Taxability under Income Tax Act

noreply@blogger.com (RAJA BABU) — Thu, 26 Jan 2012 02:44:00 +0000

There are a number of organizations which are issuing food coupons/meal vouchers to employees each month not adhering to perquisite valuation rules issued by the Income Tax Department. Let us examine the text of the perquisite valuation rule governing issuance of meal vouchers and study the underlying conditions that are to be satisfied for availing tax exemption on meal...

Know your PAN Structure Meaning of pan digits(Income Tax India)

noreply@blogger.com (RAJA BABU) — Thu, 26 Jan 2012 02:42:00 +0000

Structure of the new series of PAN : The Permanent Account Number under new series is based on following constant permanent parameters of a taxpayer and uses Phonetic Soundex code algorithm to ensure uniqueness :- i. Full name of the taxpayer; ii. Date of birth / Date of Incorporation; iii. Status; iv. Gender in case of individuals; and v. Father’s name in case of...

DDO CAN ALLOW SPECIFIED DONATION ONLY u/s 80G

noreply@blogger.com (RAJA BABU) — Thu, 26 Jan 2012 02:41:00 +0000

Recently, a payroll manager in a customer organization asked us if his organization can accept information on charitable donations made by employees for calculating deduction under Section 80G of the Income Tax Act. Let us take a look at the conditions that payroll managers should consider while calculating deduction under Section 80G. 1. Consider only specified donations. According to...

DEDUCTION U/S 80D MEDICLAIM POLICY

noreply@blogger.com (RAJA BABU) — Tue, 24 Jan 2012 16:12:00 +0000

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 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. Insurer covered:This...

PPF extention after 15 years- Indefinitely ???PPF rules 1968

noreply@blogger.com (RAJA BABU) — Tue, 24 Jan 2012 16:09:00 +0000

You may be surprised after reading the above heading and interested to know what it exactly means and how it is possible.Most of investor has a prepception that PPF is a 15 Year investment plan .But this is a fact that it can be extended to indefinitely but subject to 5 year block at a Time . PPF is 15 year scheme .However, after the initial period of 15 years is over, one can keep on...

Leave Salary encashment Exemption Calculation/calculator

noreply@blogger.com (RAJA BABU) — Tue, 24 Jan 2012 16:05:00 +0000

Dear Friends , In this post we are discussing issues and provisions related to Leave Encashment /Leave salary given to employees and Tax due on it and How much of such amount is taxable/exempted under Income Tax Act. Meaning of Earned Leave Normally in pay package of the employee two day or so is allowed as leave per month and if this leave is not availed then it will be accumulated...

DA RATE WEF JAN 2012 TO BE 65 % (7 % INCREASE)

noreply@blogger.com (RAJA BABU) — Mon, 23 Jan 2012 14:37:00 +0000

DA(dearness allowance rates are fixed on the basic of All India Consumer Price Index for industrial workers.Base year has been taken as 2001. This new DA rate system is adopted by Central and State Govts and public sector Under takings from 01.01.2006 with new pay scale as declared by the Pay commission . DA rates are to be announced half yearly basis and applicable from first of January and...

53 % discount on www.Taxmann.com site for ICAI Members

noreply@blogger.com (RAJA BABU) — Mon, 23 Jan 2012 13:10:00 +0000

As an ongoing attempt to enable the members to keep pace with the latest developments in direct taxes, the Direct Taxes Committee of ICAI has entered into an arrangement with Taxmann, a reputed and a well known publisher, wherein Taxmann has agreed to provide all materials that are published and made available by it as a part of its standard practice and procedure on its website www.taxmann.com...

INTEREST RATES FOR SMALL SAVINGS SCHEMES CLARIFICATION

noreply@blogger.com (RAJA BABU) — Mon, 23 Jan 2012 12:53:00 +0000

CIRCULAR NO. DGBA.CDD. NO.H- 4836 /15.02.001/2011-12, DATED 20-1-2012 As per the decision of the Government on the recommendations of the Committee for Comprehensive Review of National Small Savings Fund (NSSF), the rate of interest on small savings schemes will be aligned with G-Sec rates of similar maturity with a spread of 25 basis points (bps), with two exceptions. The spread on 10 year...

GET 10.5 % INTEREST ON NEFT CREDIT DELAYS

noreply@blogger.com (RAJA BABU) — Sat, 21 Jan 2012 03:50:00 +0000

With National Electronic Funds Transfer (NEFT), you can transfer funds from your account to another using Net banking. Normally, it takes a few hours for the funds to be transferred and is usually done within the same day. However, at times there could be a delay. Types of delay Sometimes there is a delay in crediting the beneficiary customer's account. When you transfer funds via NEFT to a...

CST OR VAT ,E-1,SALE IN TRANSIT -TERMS MEANING

noreply@blogger.com (RAJA BABU) — Thu, 19 Jan 2012 16:22:00 +0000

Kindly Explain me to below cases Invoice raised from One state to another state, but goods delivery with in same state which tax is applicable CST or VAT? Any forms applicable? Invoice raised with in state but material delivery to another state which tax is applicable VAT or CST ? CST is applicable On inter state sale & what is interstate sale is defined as...

PRE EXISTING SALE COVERED IN E-1 (SALE IN TRANSIT) CST ACT-WB GOVT

noreply@blogger.com (RAJA BABU) — Thu, 19 Jan 2012 16:20:00 +0000

The decision of the Supreme Court in A&G Projects & Technologies Ltd. Vs. State of Karnataka [(2008) VIL 40 SC], wherein it had laid down certain important principles governing the taxation of inter state sales of goods under the Central Sales Tax Act 1956 (the Act). While the Court had analyzed the two categories of inter state sales as visualised in Sections 3(a) and (b) of the Act, it...

E-1 (SALE IN TRANSIT ) UNDER CST ACT AND PRE-DETERMINED SALES

noreply@blogger.com (RAJA BABU) — Thu, 19 Jan 2012 16:19:00 +0000

Q.1 Please explain the scheme of “in transit sale” covered by section 6(2) of CST Act, 1956? Ans.: Section 3(a) of CST Act,1956 defines the interstate sale/purchase transaction. Section 3(b) defines the interstate sale effected by transfer of documents of title to goods. When the goods are in movement from one State to other. The whole section 3 reads as under: “3. When is a sale or purchase...

HOW TO FILL TDS CHALLAN ITNS 281

noreply@blogger.com (RAJA BABU) — Thu, 19 Jan 2012 16:15:00 +0000

I have tried to explain "how to fill challan 281" in the picture given below.The main Point which should be kept in mind ,while filling the challan form,are given below. Download above image for how to fill form 281 Deposit tax deducted from company and non company deductee in separate Challan. Suppose u have deducted tax from abc ltd and ram & com (partnership firm) u/s 194c than...

Income Tax Department Directed to Launch Special Drive for Verifying High Value Transactions

noreply@blogger.com (RAJA BABU) — Thu, 19 Jan 2012 16:09:00 +0000

The Central Board of Direct Taxes has directed the Income Tax department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions (investments / deposits / expenditure) from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions. In an instruction issued today, the CBDT issued proforma for...

HOW TO OPEN DOCX, XLSX, PPTX IN MS OFFICE 2003

noreply@blogger.com (RAJA BABU) — Thu, 19 Jan 2012 02:45:00 +0000

For all those members who have MS Office 2003 or older versions: Please follow below mentioned steps to make your current version (e.g. MS Office 2003) to be able to open all Office 2007 as well as 2010 versions with minor formatting and visual inabilities, (follow the Figures in the end for better understanding): 1. Open your Browser (e.g. Internet Explorer, Mozilla) 2. In...

MICROSOFT EXCEL USEFUL COMMAND GUIDE TIPS SHORT CUTS

noreply@blogger.com (RAJA BABU) — Thu, 19 Jan 2012 02:45:00 +0000

After a very good feed back on excel shortcuts and convert figures in to word add in for excel ,I am here again with few great Command of excel which will be help full for your day to day use of Microsoft Excel .No doubt you can expertise only after using these command more frequently and with a purpose otherwise all this short-cuts is of no use .This list is very long but you should learn only...

HOW TO DOWNLOAD FORM 16A TIN NSDL SITE-E TUTOTORIAL

noreply@blogger.com (RAJA BABU) — Tue, 17 Jan 2012 14:19:00 +0000

Form No. 16A now generated from Tax Information Network (TIN).IT is Mandatory for Companies and Banks to issue Form 16A from TIN to their deductees for deductions made from April 1, 2011 (F.Y. 2011-12).So every companies and Bank Branch have to learn the procedure "How to download form 16A from tin-NSDL site.First thing you have to do is register your TAN at tin-NSDL site ,if it is not not...