Aug 302013
 
Due dates for the Month of September 2013
05-09-2013
Service Tax
– Service Tax payments by Companies for August
06-09-2013
Central Excise
– Payment of Excise Duty for all Assessees (other than SSI Units)
07-09-2013
Income Tax
– TDS Payment for August
10-09-2013
Central Excise
– Filing ER-1 Return (Other than SSI Units)
– Filing Quarterly ER-2 Return by 100% EOUs
– Filing monthly ER-6 Return by specified class of Assessees regarding principal inputs.
15-09-2013
Income Tax
– Advance Income Tax – All Assesses
Providend Fund
– PF Payment for August
20-09-2013
MVAT
– TDS Payment for August
21-09-2013
ESIC
– ESIC Payment for August
MVAT *
– MVAT Monthly Return for August (TAX>1000000/-)

– Monthly Payment of August
30-09-2013
Income Tax
– Return of Income & Wealth for others covered under Audit & Companies but other than covered under Transfer Pricing Regulations

Profession Tax
– Payment of August
Software Solutions Available on
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Sensys Technologies Pvt. Ltd.
HO: 524, Master Mind1, Royal Palms, Goregaon East, Mumbai – 400 065.
Tel.: 022-66278600 | Call: 09769468105 / 09867307971
Email: sales@sensysindia.com | Website: http://www.sensysindia.com
Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad

 

May 162013
 

TDS Form 16 Part A to be downloaded from TRACES

The TDS certificate is furnished to the person from whose income tax is being deducted by the deductor.  The Form 16 contains details of tax computation and tax deducted/paid.

Form 16 has two separate parts: Part A and Part B.

The Form 16 part A consists of details of tax deducted and paid. Deductors shall register on the TRACES website to download the Form 16.
Part B contains details of salary and total income.

According to the Income tax department, it is compulsory to download the Form 16 Part A from the new online portal of TDS, i.e. TRACES. Dated 17th April, 2013 circular no.04/2013 has been issued by the Income Tax Department for Form 16. Revised Form 16 has been notified via Notification 11/2013 dated 19th Feb 2013. Part B of the Form no. 16 is to be prepared manually.

Section 203 of the Income tax department instructs the TDS certificates that are furnished by the deductor to the deductee which should include amount of TDS, valid Permanent Account No. of the deductee (PAN), Tax Deduction Acccount number of the deductor.

The deductor shall authenticate the details mentioned in the certificate prior to the issue of the form to the deductee. In accordance of the sub rule (6) of the Rule 31, the same content shall be verified by using manual signature or digital signature. The Part B of form 16 shall be manually prepared by the deductor and be authenticated and verified. Thereafter it can be issued to the deductee along with the Part A of the form.

Rules regarding the time limit for the issuance of the Form 16 by the deductor to the employee are set. At present,31stmay of the financial year is set as the date for the issuance of the form The Director General of Income-tax (Systems) specifies the procedure, formats and standards for the download of the form no.16 Part A from the portal (TRACES). The Director General  shall be responsible for facilitating the administration of the matters related to the procedures, formats and standards of the same.

Apr 252013
 

TDS Certificate in Form No 16 as notified vide Notification No. 11/2013 dated 19.02.2013 has two parts viz Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

ISSUE OF PART A OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE MADE ON OR AFTER 01.04.2012:

All deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall issue the Part A of Form No. 16, by generating and subsequently downloading through TRACES Portal, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number.

AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:

The deductor, issuing the Part A of Form No. 16 by downloading it from the TRACES Portal, shall, before issuing to the deductee authenticate the correctness of contents mentioned therein and verify the same either by using manual signature or by using digital signature in accordance with sub-rule (6) of Rule 31.

Download Circular & New Form16

Apr 252013
 

Important Due dates for TDS and TCS return filing, March Deposit and Certificates (16,16A,27D)

  • Tax deducted for Salary & Non Salary in the Month of March 2013 –  Due date for deposit is 30th April 2013.
  • Tax colected in the Month of March 2013  Due date for deposit is 7th April 2013. (not 30th April 2013)
  • Salary (Form 24Q) Quarterly Return for 4th Quarter from 01-01-2013 to 31-03-2013  –  Due date for Filing is 15-05-2013
  • Non Salary (Form 26Q) Quarterly Return for 4th Quarter from 01-01-2013 to 31-03-2013  –  Due date for Filing is 15-05-2013
  • Payment to Non Residents (Form 27EQ) Quarterly Return for 4th Quarter from 01-01-2013 to 31-03-2013  –  Due date for Filing is 15-05-2013
  • Issuing of Form 16 (Salary) to Employees – Due date is 31-05-2013.
  • Issuing of Form 16A (Non Salary) for 4th Quarter from 01-01-2013 to 31-03-2013 – Due date is 30-05-2013.
  • TCS Certificate Form 27D – Due date is 30-05-2013
Apr 032013
 

Tuition fees as a deduction under section 80C

The section 80c provides deduction from the taxable income for the tuition fees paid for his/her children .The upper limit for the deduction under this section is Rs 1 lakh. Parents are allowed to claim the deduction for their children’s tuition fees. This deduction is strictly available only  on the tuition fees paid and not the exam fee, sports fee, lab fee, admission fee or the hostel fee. A parent is individually allowed to claim deduction for two children , thus both the  parents can together claim deduction for four children. The deduction claim is permissible for only full time courses and not part time, coaching classes, distance learning or private tuitions. This however includes tuition fees for playschools and pre-nursery. The deduction is available on the amount paid by the individual and the period for which the payment is made is not to be considered.

Apr 032013
 

MEDICLAIM POLICY : DEDUCTION UNDER SECTION 80D

A  Mediclaim policy is one that refers to the medical insurance of individual, HUF, spouse, parents or dependent children, also known as health insurance .The section 80D of Income Tax Act provides for deduction of the payment made subject to the premiums of such medical policies. This exemption is over and above the deductions of Rs.1,00,000 under the section 80C. Medical insurance is vital in order to insure the health and safety of the family members, and it comes to aid in times of illness and makes up for your medical expenditure.

The medical premium varies with age, and as you grow older the premium increases.(Hence it is recommended that a senior citizen gets himself medically insured) The insurance can take place at any point of time between the age span of 18-59 yrs. As per the budget 2011-12, a senior citizen is a person of the age 60yrs or more. Before that, 65 yrs and more was considered as the age for senior citizens) the policy can be in the name of any of the following persons:

Individual or the taxpayer

Parents: Parents of the individual and of the spouse may be covered under this irrespective of their dependence on the assessee.

Dependent children: legitimate children or legally adopted children fall under this category and may be insured by the taxpayer. This includes male child who is unemployed, under the age of 25 yrs and he is a bonafide student fully dependent on the assessee . In case of a girl child, she is considered d as dependent until she is unmarried.

And in case of an HUF, any family member can be insured.

The total amount of deduction included under the section 80d mediclaim policies is Rs.35000. It is split into parts as shown below:

For an individual:

Basic deduction: The insurance premium of self, spouse and children is covered under this amount. Maximum deduction upto Rs.15000 is allowed .however, a deduction upto Rs.20000 is allowed in case the insured person is a senior citizen.

Additional deduction: Includes the medical premium paid for parents and a maximum deduction upto Rs.15000 is allowed. If the parent in this regard is a senior citizen then the amount is increased upto Rs.20000.

For HUF:

The premium can be paid for any member of HUF and the maximum deduction of Rs.15000 is permissible. Only when the person is a senior citizen the amount available for deduction is Rs.20000.

The medical premium is paid under medical insurance scheme of General Insurance Corporation approved by the Central Government or by any other insurer approved by IRDA (Insurance Regulatory and Development Authority).. Before 1st April 2009, the only mode of payment allowed was cheque. The payments for such premiums can now be made via any mode other than cash.

Mar 152013
 

New TDS Rules as per the new Notification 11/2013 dated 19th feb 2013.

Central Board Of Direct Taxes has issued the notification no 11/2013 dated 19 Feb 2013 allowing TDS statements with a digital signature. The Income Tax Rules, 1962 are altered by the CBDT to bring about these changes. With this notification the rule 31A has been amended that will agree to the furnishing of TDS statement under digital signature. This provides the submission of TDS (Tax Deduction at Source) return electronically and furnishing of statement  with the verification  under the form 27A .It is now possible to  carry the soft copy of the statements along with signed form 27A  to the TIN facilitation centres in order to file these statements. NSDL also provides the submission of the TDS statements electronically which calls for a prior registration. However the new guidelines are awaited regarding the submission of TDS statements under digital signature and the electronic verification process.

Form 26A – certificate from the accountant u/s 201

The form 26A will hold a certificate from the accountant under section 201. Under certain circumstances, the deductor shall not be deemed to be the assessee in default where tax is not deducted at source, in such cases the deductor shall be eligible to present the certificate from accountant. The form 26A serves this purpose. Director General of Income Tax (System) shall detail the format, procedures and standards for the same. The guidelines for the same are pending.

Form 26b – claim for refund

If extra TDS has been deposited, the surplus can be refunded by claiming the same under Chapter XVII-B .The deductor must file a refund under the new form 26B. The rules, formats and procedures recounting the same shall be told by the Director General of Income Tax (System). This form needs to be submitted electronically under digital signatures.

Amounts paid without tax deduction at source-submission of its particulars

Submitting the details of the amounts paid on which TDS has not been deducted, the notification 56/2012 dated 13/2/2013 is introduced. For Certain payments which are made to banks, the tax is not deducted at source . Submitting the details for such amounts is now possible in TDS statements.

The amendments have been made in several forms under this section. Amendment in Rules 31A & 31AA; Substitution of Rules 31ACB, 37J and  Form Nos.15G, 15H, 16, 16A, 24Q, 26Q, 27C, 27D, 27Q & 27EQ and Insertion of Form No. 26B Notification No. 11/2013[F.NO.142/31/2012-SO(TPL)]/SO 410(E). The data structure needs to be formally amended by the NSDL and the changes need to be notified in order that these changes come into effect. The changes regarding the TDS/TCS Certificate have been notified in  Forms 16,16A,27D.The changes regarding the TDS Statements in Forms 24Q,26Q,27Q and 27EQ.Declarations for payments without TDS / TCS in Forms 15G, 15H, 27C .

Feb 262013
 

Section 80CCD – Employer contribution no limit (NPS)

The Income Tax Act has yet another deduction that you can claim and save more of your income from tax deduction. Section 80CCD offers that by contributing a part of your income towards the new pension fund/scheme (notified pension scheme or NPS), you can exempt up to 10% of salary. NPS is a defined contribution based pension system launched by Government of India with effect from Jan 1, 2004. The deduction shall be allowed within the aggregate upper limit of Rs.1,00,000 considering deductions u/s 80C, 80CCC and 80CCD. An assessee or any individual employed under the central government or other employer on or after Jan 1, 2004 is eligible to contribute funds in the pension scheme. To claim benefit under this section, the assessee or individual as mentioned above should have deposited or paid an amount in his account under the new pension scheme notified by the central govearnment. Self employed persons are also eligible to contribute under this section and claim deduction. Employee contribution towards the notified pension scheme is limited to the extent of 10% of salary.

Besides, the employer is also allowed to contribute under this scheme. Section 80ccd states that contribution made by the employer to a notified pension scheme is exempt from tax to the extent of 10% of salary .The best part under this scheme is that from the assessment year 2012-13, the employer’s contribution are not included in the overall limit of Rs.1, 00,000 provided the contribution does not exceed 10 percent of the salary. As per the new budget proposal, the contribution made by an employer towards the pension scheme shall not be counted under the section 80C but under the section 80CCD.Earlier, this contribution was a part of the section 80C deduction under the provisions which a total of Rs.1, 00,000 from the annual income can be made tax-free tax. The maximum limit of Rs.1,00,000 does not apply to the Employer’s contribution  towards NPS.

This scheme will aid further tax savings and both employee and employer can avail benefits under this section. Employee contribution provides tax deduction on their salary; salary includes dearness allowance but excludes all other allowance and basics. Employers can show their contribution as a business expense from the next financial year and enjoy the added advantage of tax reduction for the firm.

Feb 202013
 

Benefit of Joint Home Loan and its Tax benefit

Buying a house has always been a bit of financial trouble for many. So, banks come to rescue and aid people with a home loan by facilitating the funding. Two earning members can come together to buy a house and share the loan. Joint home loan is the ultimate way out! Earning members of the family; Spouse, siblings, parent & child either can jointly issue a loan from the bank. This will ease off the burden of loan borrowing. Besides, there is an added major advantage to this joint loan borrowing; the co borrowers can share the tax benefits under the Income Tax Act.

Benefits of joint home loan

  • Two earning members will save a part of their income from taxation
  • The debt burden is minimized as there two people will share the loan
  • Both, Principle and interest payable are exempted from tax under the section 80C and section 24 respectively of the Income Tax Act.

 Rules for seeking a joint home loan:

  • A joint home loan can be taken by minimum 2 and maximum 6 members
  • Not all family members are eligible to take joint home loan, generally blood relatives are allowed
  • The lender defines the relationship between co borrowers in order to be eligible to seek the joint loan
  • KYC documents should be submitted that contain identity and address proof of the loan applicants
  • Documents containing the proof of ownership and income proof of borrowers are also required.

 Repayment of joint home loan:

  • Either the EMI can be paid via a joint account that is held by the co borrowers
  • Payment made by means of two different accounts for the same EMI is not allowed. However they can share total no. of installments. The payment should come from come from borrowers jointly.

The maximum tax benefit available to a single person who seeks home loan is however 1, 50,000 for each co borrower. Hence it is advisable to get a break up of tax benefits on stamp paper prior to issuing the loan. The agreement will specify the share of the ownership as well as that of the home loan. This agreement will contain the share of the ownership along with that of the home loan issued by them.

The co-borrowers must decide the ratio in which they will borrow the loan. Supposing the ratio decided is 60:40 then the tax benefits availed by them will be in the same ratio. The former can avail a 60% of tax benefit on the maximum permissible exempted limit; while the latter, 40%.

Now, it is way easier and beneficial to manage the funding for your new home by applying for loan. The income tax benefits, plus the lesser burden on a single person, in terms of loan repayment. Also, it enhances your eligibility as a loan seeker because the income of two people is clubbed; the bank finds it convenient to grant the loan.

Feb 142013
 

INTEREST ON HOME LOAN AND IT’S TAX BENEFITS

Home loan is the amount that the individuals seek from the bank  to purchase a residential property. The bank usually disburses the amount through a cheque to the person who seeks the loan in his name.However, there is some criteria that the bank follows while granting the loan. The loan seeker must pay the amount and the interest to the bank . The home loan is mainly composed of two parts:

  • The principal component
  • The interest component

The loan seeker pays back the principal amount taken from the bank as a loan; as well as he must pay the interest on this principal.The bank grants loan to the individual once the criteria under consideration is fulfilled.The principal amount is exempted from being taxed under the provisions of section 80C. The  interest on this amount is also deductible from the taxable income under the section 24 .The loan seeker can avail of the tax benefits under these two sections of the Income Tax Act.

This means that the part of the income that the individual uses to pay the interest on house loan as an EMI(equated monthly installments) is exempted from taxation.The principal repayment shall be deducted under section 80C only if the loan seeker is staying in the same house for which the loan is issued.Also, if the person is not residing in that house because he/she is working out of  town, in that condition also  the principal repayment deduction will take place.In other conditions, if the house is not occupied by the owner or is under construction , the deduction under 80C is not possible. The maximum limit for deduction under this section is Rs.1,00,000. EPF, PPF, ELSS, LIC and there are other ways of ensuring deduction under the section 80C in order to save tax.

The EMI that the loan seeker pay towards the interest on home loan can also be exempted from taxation under the section 24 b.The principal amount is paid with interest in installments ;the total amount for the interest portion  over the entire year is exempted from tax and  from a deduction under the section 24. This section covers the interest on amount that is borrowed in order to acquire a property, or facilitate its  construction, renovation or repair. However,the penal interest on housing loan is not allowed as a deduction.

Similarly, if the individual chooses to pay this loan by taking a fresh loan, then the fresh loan is allowed as a deduction under section 24 if and only if the fresh loan is wholly and solely used to pay the original loan.There is no limit as to the number of houses under this section; interest payment on as many home loans is allowed but the limit is Rs 1,50,000 only.The interest payment is directly deducted from the income and is set aside from the taxable income. However, this section provides exemption for home loans for self occupied property only.

So, next time you plan to buy a house and need funding ,you need not think twice to take a home loan from the bank. After all  it’s not just an aid to your funding for the house but its also  going to help you save a lot of your income from the tax.