Mar 292014
 
Due dates for the Month of April 2014
06-04-2014
Central Excise
– Payment of Excise Duty for all Assessees (including SSI Units)
10-04-2014
Central Excise
– Filing ER-1 Return (Other than SSI Units)
– Filing Quarterly ER-3 Return by SSI Units availaing small scale exemption.
– Filing Quarterly ER-8 Return by the units paying 2% duty
– Filing Quarterly ER-2 Return by 100% EOUs
– Filing monthly ER-6 Return by specified class of Assessees regarding principal inputs.
15-04-2014
Providend Fund
– PF Payment for March
Central Excise
– Filing Quarterly Return (ANN. 13B) by the registered dealers.
20-04-2014
Central Excise
– Filing Quarterly Return (Annexure 75) by units availing area based exemptions
MVAT
– TDS Payment for March
21-04-2014
ESIC
– ESIC Payment for March
MVAT *
– MVAT Monthly Return for March (TAX>1000000/-)

– MVAT Quarterly Return for January to March (TAX>100000/- and <=1000000/-)
MVAT
Montly & Quarterly Payment till March
Filing of return where March occurs
25-04-2014
Service Tax
Service Tax Return for Oct to March – All Assessees.
30-04-2014
Central Exise
Filing Annual Information on principal inputs (ER-5) by the specified Assessees.
Filing Annual Production Capacity Statement (ER-7) by the specified Assessees.
MVAT

Six monthly payment till March
Six monthly Return till March for Vat audit dealers
Profession Tax
– Payment of March
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Branches: Delhi & NCR | Pune | Bangalore | Hyderabad | Ahmedabad

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Mar 262014
 

Enclosed is the Circular in regards to Mandatory registration of Digital Signature Certificate (Class 2 and above) of the authorized signatories of the establishments (having more than 100 ECR members) with EPFO.

Download Circular

Mar 262014
 

Form 26AS with respect to Tax Deducted at Source (TDS)


Form 26AS is, in essence, an acknowledgement of sorts when it comes to Tax Deducted at Source (TDS). Which is to say that Form 26AS shows the amount of TDS, which has been deducted and is available as credit against our Income Tax liability, if any.

To understand this concept and in order to make it work in one’s favour, one needs to understand the basics with respect to TDS and Form 26AS:

TDS:

1. TDS or Tax Deducted at Source refers to the deduction of Tax from the respective source of one’s income. Example: Let’s say that you are a Salaried employee in an organization so, subject to the applicable basic deduction/exemption limit, the organization pays Salary to you after deducting TDS from the same. Thus, Salary is your source of income and the deduction of Tax by the organization from Salary (the source of income) before paying the same to you is referred to as Tax Deducted at Source (TDS).

2. Tax is Deductible from various sources of income subject to applicable basic deduction/exemption limits. Example: Bank deducts TDS from interest (the source of income) on Fixed deposits etc.

3. Now, TDS which has been deducted by the deductor (the person responsible for making the payment, example: Bank which pays interest on Fixed deposit so Bank will be referred to as a deductor), has to be deposited in Government account on behalf of the deductee (deductee is the one who receives the income, example: the receiver of interest on Fixed deposit from Bank).

4. After depositing TDS in Government account, the deductor, files a TDS return after the end of every quarter with National Security Depositories Limited (NSDL).

5. The main purpose of filing TDS return is to inform the Government as to what all payments have been made during the quarter, to whom have the payments been made, what was the nature of payment like interest, Salary etc., PAN no. of the person to whom the payments have been made, the rate and amount of TDS deducted etc.

6. Thus, basis these returns, Government gives the credit of TDS to the respective persons on behalf of whom TDS has been deducted by the deductor.

Form 26AS:

1. Government gives the credit of TDS on the basis of TDS return and this credit gets reflected in Form 26AS. Example: Let’s say that you have a Fixed deposit of Rs.10,00,000/- @8% with ICICI bank and the Bank paid the interest of Rs.18,000/- (20,000-2,000 (TDS)) for the period April to June and then in July filed the TDS return for the period April to June. Thus, after filing of TDS return by ICICI bank, a credit of Rs.2,000/- will get reflected in your respective Form 26AS because in the TDS return filed by Bank, Bank had given the details of interest payable to you i.e. Rs.20,000/-, the amount of TDS deducted from the same i.e. Rs.2,000/- , your PAN number, Name etc. Hence, on the basis of your PAN number, the Government gives the credit of Tax deducted from your income which gets reflected in Form 26AS.

2. The organization deducting TDS from your income, like ICICI bank in the aforementioned example, will issue a TDS certificate to you after filing TDS return.

3. You can compare Form 26AS with TDS certificates issued to you and if the amount of TDS deducted as per Form 26AS and as per TDS certificates is the same then it means that the Tax credit reflecting under your PAN in Form 26AS is correct. However, in case if TDS in certificates and Form 26AS does not match then you need to inform the deductor i.e. ICICI bank in the aforementioned example. The deductor will then revise the TDS return filed because such an issue of TDS credit not getting reflecting in Form 26AS occurs only when there is some error in TDS reurn filed by the deductor.

4. Most common reason due to which proper credit does not get reflected in Form 26AS is that the deductor has not quoted or has quoted incorrect PAN number (your PAN number) in TDS return.

5. Once the revised TDS return is filed by the deductor after making necessary corrections then the credit will get reflected in one’s Form 26AS after sometime.

6. Thus, before filing the return of income one must check Form 26AS to make sure that proper TDS credit is appearing in Government records.

Please remember that irrespective of TDS certificates you have, credit of Tax shall be given on the basis of Form 26AS only. However, these days TDS certificates are being downloaded from TRACES portal, thus, chances of mismatch between TDS certfificates and Form 26AS are minimal.

Please take care that you claim TDS credit in your Income Tax Return after tallying TDS certificates received by you with Form 26AS so that you get 100% benefit of TDS deducted from your income. As, at times, it so happens that the amount of TDS credit appearing in Form 26AS is more than the amount in TDS certificates and this happens because one or some of the deductors who have deducted TDS on your behalf have not issued TDS certificate(s), for the same, to you.

Courtesy: CA Sahil Jolly

Mar 252014
 

Notice from Income Tax Department


One of the biggest worries of income tax payers is getting notice from Income Tax Department. The Department issues notices under various provisions of Income Tax Act. The purpose of the same is to ensure greater tax compliance.

In recent times, the Department has access to wide range of financial information of taxpayers and the same is utilized for identifying potential cases of tax evasion. Department also takes help from computer-aided scrutiny system (CASS), which generate cases where there is discrepancy in income tax return data.

REASONS FOR NOTICE FROM INCOME TAX DEPARTMENT

Some common reasons leading to notice from Income Tax Department may include;

1. Escaped Income

If the taxpayer has knowingly or unknowingly left some part of income from the income tax return, he or she may get a notice from the department,

2. Not filing returns if income is above exemption limit

As per income tax provisions, it is mandatory to file income tax return if the income is above the exemption limit for the relevant year.

3. Not declaring income from all sources

Tax payer is required to pay taxes on total taxable income during the year. Therefore it is necessary to include salaries etc. from all employers and other taxable income from all relevant sources in the income tax return. For example, there may be income from interest earned on bonds, fixed deposits, recurring deposits etc. which should be included in the total income.

4. Mismatch in TDS details as per Form 26AS and details filed in income tax return

There may be difference between TDS details as per Form 26AS and details filed in income tax return. Both should be reconciled and differences should be rectified before filing the income tax return.

5. Mismatch in income, expenses and investments

Generally, investments and expenditure of the tax payer should match with his or her income. Otherwise, it may create suspicion of escaped income which may lead to notice from the department.

VARIOUS SECTIONS UNDER WHICH NOTICE CAN BE SENT

There are various sections under which Income Tax Department may send notice. These sections include;

NOTICE UNDER SECTION 131

Income Tax Department has got power under this section related to discovery of escaped income and production of evidence etc. The department under this section may ask a tax payer to submit further documents to verify income source and investment details.

NOTICE UNDER SECTION 139(9)

Under this section, the tax payer receives intimation of probable defect in the income tax return and he or she is given an opportunity to rectify the same within 15days from the date of such intimation or within such extended period as may be allowed. If the defect is not rectified within the aforesaid period, the return may be considered as an invalid return and accordingly the assessee may be deemed to have furnished no return.

NOTICE UNDER SECTION 142 (1)

This section provides that the department may make necessary enquiries before completing assessment.

INTIMATION UNDER SECTION 143 (1)

Under this section department may intimate the tax payer to pay excess tax amounts due to reasons such as calculation errors etc.

NOTICE UNDER SECTION 143 (2)

This is a service of notice for regular assessment. Detailed scrutiny assessments are done under this section. It can be served only if a return has been filed. All relevant documents related to investments, claim for tax deductions, allowance and source of income in the relevant financial year are generally called for.

It has to be served within the time limit of 6 months from the end of the Financial Year in which return of income is filed.

NOTICE UNDER SECTION 148

Under this section notice is issued in those cases where income tax department has reason to believe that some income has escaped assessment.

NOTICE UNDER SECTION 156

Where any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed, the department may serve upon the assessee a notice of demand under this section, specifying the sum so payable.

WHAT TO DO WHEN NOTICE IS RECEIVED

Taxpayers need not worry if they get notice from the Income Tax Department. Instead, they should try to understand the reason for the notice and act accordingly. The taxpayer should collect all documents related to the assessment proceedings including Form 16 (in case of salaried employees), Form 16A, details of income and expenses, bank statements along with narration of entries therein, credit card statements, details of loans, gifts and investments etc.

On the basis of the above documents and queries asked in the notice, a proper reply should be prepared for submitting to the income tax officer on the hearing date. It should be kept in mind that the case may go for some months before a final decision or order.

Although the assessee himself may pursue the matter, he or she may take the professional help of a Chartered Accountant, as providing less or more information than necessary, may go against him/her.

Courtesy: CA. Brijesh Baranwal

Mar 182014
 

Benefits of Payroll Software as a Service (SaaS)

With payroll software service you can keep yourself totally untroubled of the entire payroll process from start to finish. The service is available 24×7 and you are free to decide when, how and how often to run the payroll.

Payroll software as a service emerged as a need to simplify the payroll manager’s job. It completely takes care of paying your staff accurately on time and keeping your organisation compliant with current payroll legislation. The software assists the payroll department in managing the process more efficiently thus reducing the administration effort and time consumed.

Using payroll software as a service aids in a way as new enhancements and functionalities are added periodically. Changes in legislation are incorporated so as to make sure that your organisation makes the best use of its payroll software. You can have free updates to your payroll software on a regular basis. Regular and free updates to payroll tax tables. You no longer need to run nightly / weekly backups to protect your data.

It is more affordable and eases off the burden that one encounters in traditional payroll services. Apart from providing the same features of a traditional payroll service at a lesser value, SaaS payroll services facilitates a convenient way of entering payroll that saves time.

Now you can process payroll with 100% accuracy, control and flexibility. Below are some benefits of opting for SaaS payroll services are as follows:

•    The payroll software takes care of payroll deductions, payroll calculations and tax calculations thus omitting the chances of error as in case of manual calculations.
•    The software gathers employee data like the leaves, arrears, reimbursements, advances and loans that are essential in order to generate payroll for the staff on punctually.
•    The automated payroll helps an organization by saving time and resources and effectively delivering the services.  The personnel involved in the payroll process can be utilized for other meaningful tasks while the payroll software handles the task of the former.
•    All it takes is a click to quickly view any reports; the reports are designed in such a way that every minute detail is recorded for stress free reference at any point of time.
•    All the data is easily available at one place by way of automated payroll services and the payroll thus maintained is assured to be error free.
•    Goals like verifications and clarifications with respect to pay, deductions and other payroll information are more easily achievable.
•    A SaaS brings credibility and integrity within an organization as the process is transformed into a more efficient, reliable, quick and systematic one.
•    Costs associated with hardware and software maintenance are saved and it wipes out the need to install any software on your local PC.

Surely it is time to revamp your payroll system with the software service that comes with so many advantages. It definitely makes sense to opt for something that is easier, beneficial and more advanced.