TaxGuru.in - Daily Tax and Corporate Law Update

Provisions for Deposit of tax, Credit of TDS, TDS Certificate, TAN and Time Limit for Deposit of Tax

admin — Sat, 28 Jan 2012 03:30:11 +0000

Deposit of Tax -Where tax has been deducted under Sections 193,194,194A,194B,194BB, 194C, 194D, 194E,194EE, 194F, 194G, 194H, 194I, 194J, 194K, 194LA, 195, 196A, 196B, 196C and 196D, it is duty of the person deducting tax at source to deposit the...

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How to know your Income Tax Jurisdiction

admin — Sat, 28 Jan 2012 03:19:02 +0000

Many time Assessee want to know his Income tax jurisdiction i.e. Income tax ward under which he is assessed. If you are filing your income tax Return manually it is must to be aware of your income tax Jurisdiction as you can file you income tax...

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Claiming HRA – What to do if landlord refuse to furnish PAN?

admin — Sat, 28 Jan 2012 02:48:29 +0000

If you are paying rent and getting HRA allowance every month, you are eligible for tax deductions according to the prescribed limit of HRA exemption. If you want to avail of the benefits, you must submit the rent receipts to your employer every year...

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Deduction from Income we use to forget while computing taxable income

admin — Sat, 28 Jan 2012 02:25:58 +0000

Medical treatment of specified ailments under section 80DDB:-Deductions of expenses on medical treatment of specified ailments (such as AIDS, cancer and neurological diseases) can be claimed under Section 80DDB. The maximum amount of deduction...

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ITAT can dismiss appeal for non attendance despite issue of notice to attend

admin — Sat, 28 Jan 2012 01:47:53 +0000

Classic Shares & Stock Broking Services Limited Vs. ACIT (ITAT Mumbai) - This appeal was fixed for hearing on 16.01.2012. However, despite notice, none appeared on behalf of the assessee nor has it moved any application for adjournment. It is,...

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Allowability of bad debts under section 36(1)(vii)

admin — Sat, 28 Jan 2012 01:40:52 +0000

ACIT vs Ashima Dyecot Pvt. Ltd. (ITAT Ahmedabad) - After the amendment of section 36(1)(vii) of the Income-tax Act, 1961, with effect from April 1, 1989, in order to obtain a deduction in relation to bad debts, it is not necessary for the assessee...

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Would expenditure incurred on feasibility study conducted for examining proposals for technological advancement relating to the existing business be classified as revenue expenditure, where the project was abandoned without creating a new asset?

admin — Sat, 28 Jan 2012 01:07:42 +0000

CIT v. Priya Village Roadshows Ltd. (2011) 332 ITR 594 (Delhi) -In this case, the assessee, engaged in the business of running cinemas, incurred expenditure towards architect fee for examining the technical viability of the proposal for takeover of...

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Would the phrase “used for purpose of business” in respect of discarded machine include use of such asset in the earlier years for claim of depreciation under section 32?

admin — Sat, 28 Jan 2012 00:58:41 +0000

CIT v. Yamaha Motor India Pvt. Ltd. (2010) 328 ITR 297 (Delhi) - The issue under consideration in this case is whether depreciation is allowable on the written down value of the entire block, even though the block includes some machinery which has...

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Is the assessee entitled to depreciation on value of goodwill considering it as “other business or commercial rights of similar nature” within the meaning of an intangible asset?

admin — Sat, 28 Jan 2012 00:57:21 +0000

B. Raveendran Pillai v. CIT (2011) 332 ITR 531 (Kerala)- Under section 32(1)(ii), depreciation is allowable on intangible assets, being know-how, patents, copyrights, trade marks, license, franchise, or any other business or commercial rights of...

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What can be the tests to determine “substantial part of business” of lending company for the purpose of application of exclusion provision under section 2(22)?

admin — Sat, 28 Jan 2012 00:49:46 +0000

CIT v. Parle Plastics Ltd. (2011) 332 ITR 63 (Bom.) Under section 2(22), dividend does not include, inter alia, any advance or loan made to a shareholder by a company in the ordinary course of its business, where the lending of money is a...

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Would the procurements of parts and assembling them to make windmill fall within the meaning of “manufacture” and “production” to be entitled for deduction under section 80-IB?

admin — Sat, 28 Jan 2012 00:48:32 +0000

CIT v. Chiranjjeevi Wind Energy Ltd. (2011) 333 ITR 192 (Madras High Court) -The Supreme Court, in India Cine Agencies v. CIT(2009) 308 ITR 98, laid down that the test to determine whether a particular activity amounts to "manufacture" or not is...

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Would grant of transport subsidy, interest subsidy and refund of excise duty qualify for deduction under section 80-IB?

admin — Sat, 28 Jan 2012 00:47:34 +0000

CIT v. Meghalaya Steels Ltd. (2011) 332 ITR 91 (Gauhati High Court) -The Supreme Court, in Liberty India v. CIT [2009] 317 ITR 218, observed that section 80-IB provides for deduction in respect of profits and gains “derived from the business” of the...

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Can penalty under section 271(1)(c) for concealment of income be imposed in a case where the assessee has raised a debatable issue?

admin — Sat, 28 Jan 2012 00:46:56 +0000

CIT v. Indersons Leather P. Ltd. (P&H HC)- The assessee company, after discontinuing its manufacturing business, leased out its shed along with fittings and disclosed the income as income from business, whereas the Revenue contended that the...

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ICWAI revised fees payable by members w.e.f. 01.04.2012

admin — Fri, 27 Jan 2012 22:49:36 +0000

The fees payable by the members of the Institute have been revised by the Council with effect from 1st April, 2012 from the financial year 2012-2013 onwards as follows:

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Budget 2012- FinMin considers imposition of higher excise duty on Diesel cars

admin — Fri, 27 Jan 2012 18:52:24 +0000

Diesel car buyers may have to shell out more with the Finance Ministry considering the imposition of higher excise duty on such vehicles in the upcoming Budget likely to be unveiled sometime in March. In order to discourage consumption of subsidised...

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IT official convicted in bribary case

admin — Fri, 27 Jan 2012 16:21:54 +0000

Chennai- An Income Tax official was today convicted for bribery charges in a case filed by the CBI. P K Chandrasekaran, Income Tax officer in the Office of Joint Commissioner of Income Tax, Tambaram range, was trapped in 2008 while demanding and...

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India Signs Multilateral Convention on Mutual Administrative Assistance in Tax Matters

admin — Fri, 27 Jan 2012 16:19:40 +0000

India has signed a Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The Convention was signed by Shri Sanjay Kumar Mishra, Joint Secretary, Foreign Tax & Tax Research Division, Department of Revenue, Ministry of...

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India must have independent regulator for auditors – PwC

admin — Fri, 27 Jan 2012 16:17:14 +0000

Supporting the capital market regulator Sebi's proposal for an independent auditing regulator in India, global auditing and consultancy major PwC has said there is an urgent need to have a strong and powerful watchdog for this business.

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Comments invited on the XBRL filings for Financial Year 2010-11

admin — Fri, 27 Jan 2012 15:19:46 +0000

Dear Professional Colleague, The mode of filing of the Financial Statements have undergone a sea change. Earlier from the physical filing of the records to e-filing and now to a totally new language of reporting called, XBRL. In the first phase of...

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Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR

admin — Fri, 27 Jan 2012 04:00:45 +0000

The Reserve Bank in its Third Quarter Review of Monetary Policy 2011-12 issued on January 24, 2012, decided to reduce the Cash Reserve Ratio (CRR) of Scheduled State Co-operative Banks / Regional Rural Banks by 50 basis points from 6.00 per cent to...

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Additional Repo Operations under Liquidity Adjustment Facility (LAF) on Reporting Fridays

admin — Fri, 27 Jan 2012 04:00:14 +0000

At present, Reserve Bank of India operates Liquidity Adjustment Facility (LAF) to inject/absorb liquidity through daily Repo/Reverse Repo auctions. While the LAF Repo operations are conducted in the forenoon between 9.30 A.M. and 10.30 A.M., the LAF...

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How to know Income tax Refund failure Status

admin — Fri, 27 Jan 2012 03:45:39 +0000

CPC Refund Failure Status - Use this query to find out if your Income Tax 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...

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TDS – Provisions related to Lower deduction / non-deduction of tax and on payment to Government

admin — Thu, 26 Jan 2012 14:32:27 +0000

Section 197 gives a right to the assessee to obtain a certificate from the Assessing Officer that tax may be deducted at a lower rate than prescribed in Sections 192,193,194,194A,194C,194D,194G,194H,194I, 194J, 194K, 194LA, and 195, by making an...

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All about e-TDS and Quarterly Statements Of TDS

admin — Thu, 26 Jan 2012 13:45:07 +0000

-e-TDS implies, filing of the TDS return in electronic media as per prescribed data structure in either a floppy or a CD ROM. The aforesaid requirement is essentially a part of the process of automation of collection, compilation and processing of...

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Format of details to submitted during Income Tax Assessment

admin — Thu, 26 Jan 2012 08:31:11 +0000

We have attached a file in excel format. The file contains the format of various details which normally assessing officer asks Assessee to furnish during Scrutiny Assessment U/s. 143(3) of the Income Tax Act, 1961. We have attached the format of...

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Download Income Tax Calculator for A.Y. 2011-12, 10-11, 09-10, 08-09, 07-08 for Male, Female, Senior Citizens

admin — Thu, 26 Jan 2012 08:22:25 +0000

Download Income Tax Calculator for salaried For A.Y. 2011-12, 10-11, 09-10, 08-09, 07-08 for Male, Female, Senior Citizens. The calculator also calculate interest U/s. 234A, 234B and 234C, Automatically. Calculator for those having Income from...

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Delay in notice U/s. 143(2) Renders Assessment Void – HC

admin — Thu, 26 Jan 2012 07:12:19 +0000

Alpine Electronics Asia Pte Ltd vs. DGIT (Delhi HC) - Draft order is not the final assessment order and does not result in completion of assessment. Under sub-section (2) to Section 143, the assessee has a right to accept, within 30 days, the draft...

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Public issue of Hudco Tax Free Bonds to open on 27 Jan 2012

admin — Thu, 26 Jan 2012 05:59:01 +0000

State-run Housing and Urban Development Corporation (HUDCO) today said its public issue of tax-free bonds will hit the market on January 27 with a target of raising up to Rs 4,685 crore. The income by way of interest on these Bonds shall not form...

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Petition in HC against minimum wages specified in CA Offices by Kerala State Government

admin — Thu, 26 Jan 2012 05:58:32 +0000

CA Club, Thrissur, has filed a writ petition in Kerala High Court against the notification issued by Kerala State Government imposing minimum wages in Offices of Chartered Accountants in Kerala State. The writ petition was filed in Kerala HC by CA...

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Procedure and FAQ for On-line Submission of Application for Verification of Answer Books for CA students

admin — Thu, 26 Jan 2012 05:57:33 +0000

Candidates of November 2011 CA examinations Final, IPCE and PCE can submit their application for verification of answer books and also make payment of verification fees, on-line at http://icaiexam.icai.org. This facility will be in addition to the...

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Get Your Firm Status Updated by 31.01.2012 for Empanelment with C&AG and Bank Branch Auditors’ Panel

admin — Thu, 26 Jan 2012 05:56:55 +0000

For the purposes of Empanelment in the panel prepared by Office of C&AG and Bank Branch Auditors’ Panel prepared by ICAI (for which Constitution Certificates as on 1st January are issued every year); no condonation of delay in submission of...

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ICAI issues Exposure Draft of Guidance Note on Rate Regulated Activities for comments

admin — Thu, 26 Jan 2012 04:37:28 +0000

A key aspect of rate regulation is that the regulator is empowered to determine prices that bind the entity’s customers under a statute or otherwise. Regulatory authorities are usually set up under a legislation which stipulates their constitution,...

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Ex – ITAT Members can practise before the Benches of Tribunal where they were not posted – HC

admin — Thu, 26 Jan 2012 01:59:28 +0000

Dinesh Chandra Agarwal vs. UOI (Allahabad High Court) - Rule 13E of Income Tax Appellate Tribunal Members (Recruitment and Conditions of Service) Rules, 1963 as amended on June 3, 2009 imposes a complete ban on practice by the retired members...

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Validity of reopening of assessment should be judged only with reference to the reasons recorded by the Assessing Officer u/s.148(2)

admin — Thu, 26 Jan 2012 01:44:42 +0000

Rajat Export Import India Pvt. Ltd. Vs. ITO (Delhi HC) - The reasons to believe recorded in writing by the Assessing Officer in the present case have been quoted earlier. They are detailed and show application of mind. The reasons record inferences...

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Salient Features of IRFC Tax Free Bonds – Opening on 27 Jan 2012

admin — Thu, 26 Jan 2012 01:18:41 +0000

Indian Railway Finance Corporation Ltd - Issue period: 27 January 2012 to 10 February 2012. Issue of Tax Free Secured Redeemable Non Convertible Bonds . Basis of allotment: On a first-come-first-serve basis within each category. The...

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Budget 2012- Government may bring provisions to tax overseas deals

admin — Wed, 25 Jan 2012 23:05:03 +0000

To avoid disputes like the Vodafone tax case in future, government is contemplating incorporation of provisions on taxation of overseas deals from the stalled Direct Taxes Code (DTC) Bill in the Budget for 2012-13. “The Direct Taxes Code Bill...

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Punjab Polls – Candidates rope in CAs for managing poll expenses

admin — Wed, 25 Jan 2012 21:05:21 +0000

With the Election Commission keeping a strict vigil on expenditure in the Assembly polls, many candidates have roped in tax experts like Chartered Accountants to ensure that their spending remains within the maximum limit.

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I-T official convicted in bribary case

admin — Wed, 25 Jan 2012 19:18:15 +0000

An Income Tax official was today convicted for bribery charges in a case filed by the CBI. P K Chandrasekaran, Income Tax officer in the Office of Joint Commissioner of Income Tax, Tambaram range, was trapped in 2008 while demanding and accepting a...

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SEBI – Eligibility criteria for qualified depository participant

admin — Wed, 25 Jan 2012 18:11:08 +0000

Vide SEBI circulars Cir/IMD/DF/14/2011 and Cir/IMD/FII&C/3/2012 dated August 09, 2011 and January 13, 2012 respectively, Qualified Foreign Investors (QFI) were allowed to invest in schemes of Indian mutual funds and Indian equity shares subject...

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Leave taken by CA Students during exams not to be included in the calculation of maximum Leave

admin — Wed, 25 Jan 2012 16:24:56 +0000

The brief Summary of Leave for article clerk of CA students (Regulation 59) is given below for reference. CA students should be aware that during the period of CA examination (including the intervening holidays) are entitled to be present and should...

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Direct Tax Code, 2010 (DTC) – Income from House Property

admin — Wed, 25 Jan 2012 16:11:47 +0000

As we are expecting the DTC be implemented from 1st April 2012, we have to be familiar with the DTC provisions. In general the DTC looks and be simple but it is complicated unless otherwise if we have studied the entire provisions of the act...

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Highlights of Revised Public Provident Fund (PPF) Scheme w.e.f 01.12.2011

admin — Wed, 25 Jan 2012 16:00:32 +0000

Interest 8.6% w.e.f 01.12.2011 (subject to change as per GOI/RBI directives) to be applied annually. (1) This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2011 2) It shall come into force on the 1st day of December 2011. (3)...

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Duties of Person Deducting Tax at Source (TDS)

admin — Wed, 25 Jan 2012 04:00:34 +0000

Deduct Tax at Correct Rate and deposit in Government Account, Electronic payment of taxes, Issue a TDS certificate, File Return/Quarterly Statement, Filing of Annual Return on Computer Readable Media, Quarterly statement of TDS

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Penalty, Prosecution and Other Consequences of Non Deduction of Tax at Source (TDS)

admin — Wed, 25 Jan 2012 04:00:28 +0000

1. Prosecution etc. : U/s. 276B If a person deducts tax at source etc. but fails to pay the same to the credit of Central Government as prescribed, he can be sentenced to rigorous imprisonment for a term not less than 3 months and extendable upon 7...

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Rights of Person from whose income (payment) the tax has been deducted

admin — Wed, 25 Jan 2012 03:59:49 +0000

If tax has been deducted at source in accordance with the provisions of Chapter XVII-B of Income Tax Act, 1961, the person from whose income (payment) the tax has been deducted i.e. Payee or assessee shall not be asked upon to pay the tax himself to...

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Digitization of Manually filed Service Tax Returns

admin — Wed, 25 Jan 2012 03:59:45 +0000

Calling of Tender for Digitization of Manually filed Service - Tax Returns pertaining to Service Tax-I, Mumbai Commissionerate. The Service Tax-I, Mumbai Commissionerate is inviting quotations from experienced Service Providers/Contractors having...

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Vodafone ruling effect – Exporters question TDS on foreign payment post

admin — Wed, 25 Jan 2012 03:58:25 +0000

The Supreme Court judgement on Vodafone tax case seems to have opened a Pandora's box with exporters too expressing reservation on tax deducted at source (TDS) for payment with regard to overseas transactions. Exporters' body FIEO today questioned...

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Inflation Forecasting- Issues and Challenges in India

admin — Wed, 25 Jan 2012 03:55:50 +0000

Muneesh Kapur1 This paper focuses on modelling and forecasting inflation in India using an augmented Phillips curve framework. Both demand and supply factors are seen as drivers of inflation. Demand conditions are found to have a stronger impact on...

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External Commercial Borrowings – Simplification of procedure

admin — Wed, 25 Jan 2012 03:54:09 +0000

A.P. (DIR Series) Circular No.69 Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, notified vide Notification No. FEMA...

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