Showing posts from February, 2009

New Rate of service Tax from 24.02.2009

Effective date of the reduction of the service Tax & Excise Duty SERVICE TAX REDUCED TO 10 % FROM 12 % Excise Duty Reduced By 2 % Notification from New Rate of service Tax from 24.02.2009 Basic rate =10% education cess =2 % of basic rate Higher en secondary cess : 1 % of basic rate total tax rate =10.30% of taxable amount of service. Applicable Date Service tax reduction from 12 to 10 and excise duty from 10 to 8 has been done by notifications dated 24.02.2009 so both are applicable from 24.02.2009


COPY OF- INCOME TAX INSTRUCTION - NO. 01/2009 - DATED 12-2-2009 Departmental Copy UTILIZATION OF INFORMATION IN THE ANNUAL INFORMATION RETURNS (AIRs) RELATING TO FINANCIAL YEAR. 2007-08 (ASSESSMENT YEAR 2008-09) AND SUBSEQUENT YEARS - REG The Board has considered the issues relating to the above and has decided that the information from the AIRs pertaining to financial year 2007-08 (Assessment year 2008-09) and subsequent years should be utilized in the manner laid down in paragraphs 2 to 8 below. Download complete instructions

IIFCL's 6.85 % 5 Years Tax Free Bonds

The 2nd tranche of Private Placement of 6.85% Tax free Bonds Issue The 2nd tranche of Private Placement of 6.85% Tax free Bonds Issue with 5 years Tenor and unconditionally and irrevocably guaranteed by Government of India for timely payment of principal and interest shall open on F ebruary 18, 2009 and close on March 6, 2009 . The deemed date of allotment shall be March 6, 2009. The Issue can be closed earlier/extended at the discretion of the Management of IIFCL. The deemed date of allotment shall also get extended in case of extension of the date of closure of the Issue. The face value of the Bond shall be Rs. 1,00,000 with minimum application size of 10 Bonds and thereafter in multiple of one Bond. The Company shall pay interest @ 6.85% on application money from the date of realization of the subscription upto one day prior to deemed date of allotment subject to TDS, if any. The Tax Free Bonds shall be issued in dematerialized form and listed on WDM Segment of BSE and NSE. for

Finance Budget 2009

Download Finance Budget 2009

Address Proof Card frm Post Office at Rs. 250

Working peoples often shift their houses. For them, it is difficult to produce an address proof issued by Govt with latest address. Our India post office has come up with a answer. Now you can get an Address proof along with your photo from India post. Since the ID proof is issued by India post which is a central government organization, it is similar to Govt ID cards like Driving license, Voters ID etc. It can be used for opening bank accounts, for getting telephone/internet connections etc.

Deduction u/s 80C - 2009

Table of 80C Scheme U/S 80C Applicable to Cap & Other conditions to be complied with Life Insurance premium Individual (spouse and children) and in case of HUF any member of family premium (during the year) should not exceed 20% of the capital sum assured Amount actually paid during the year. Contribution by an employee to Recognised Provident Fund employee Contribution made in Recognised Provident Fund or a Statutory Fund, approved superannuation fund by the Central Govt. only. Public provident fund Individual Safest way to invest current rate of interest on PPF is 8% which is also tax exempt Repayment of loan Individual & HUF loan taken for purchase or construction of house( residential) Deduction of principal amount only Tuition Fees Individual Deduc

Procedure for obtaining Permanent Account Number (PAN)

Application for PAN shall be made in Form 49A: Application Q. Where should PAN application be submitted? Ans. Application can be submitted to any of the TIN-FCs or PAN Centres managed by NSDL or it may be couriered to PM Mittal & Co.(contact ) Q. Enquiry about the status of application? (i) Enquiry regarding the status of application shall be made by accessing NSDL-TIN website at the “Status track” option and quoting your unique 15-digit acknowledgement number after three days of your application. (ii) You can also obtain status of your application through SMS (Short messaging service) using mobile phones. For this, you have to type the word “PAN” followed by your 15-digit acknowledgement number and send it to 53030. For example: SMS PAN 012345678901234 to 53030. Q. Which documents will serve as proof of identity and address for applicants other than individual and HUF ? List of docum

What is Permanent Account Number (PAN) & Who can Apply

Q. What is PAN? Ans. Permanent Account Number (PAN) is a ten-digit alphanumeric identifier, issued by Income Tax Department. Each assessee (e.g. individual, firm, company etc.) is issued a unique PAN. Q. Who can apply for PAN? Ans. All persons who are assessed to tax or taxpayers or persons who are required to file a return of income, even on behalf of others, must have a PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also have a PAN. Like Return of income, purchase of motor vehicles & immovable properties etc. · In case of minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons , PAN can be applied their Representative Assessee. In such cases, in the application for PAN, details of the a minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided. · Details of representative

Procedure for new PAN card or/and changes or correction in PAN

Q. What is the requirement to submit the application in the form “Request for New PAN Card or Changes or Correction in PAN data”? Ans. An application in the form “Request for New PAN Card or/and Changes or Correction in PAN data” in the following cases: A] When you don’t have PAN and want a new PAN card, B] When you want to make some changes or corrections in your existing PAN details. It is an offence under Income Tax Act, to hold more than one PAN card by a single person in his name. Q. What are the charges for the form “Request for New PAN Card or/and Changes or Correction in PAN data”? Ans. The form is freely downloadable from NSDL-TIN website or from It is also available with the TIN-FCs, who may charge a maximum of Rs. 5 per form. Q. What is the fees to be paid while submitting the form for “Request for New PAN Card or/and Changes or Correction in PAN data”? Ans. The fee payable is Rs. 60 (plus service tax, as applicable) to TIN-FCs as pr

Centralized processing centre for I-T returns in Bangalore Okayed

New Delhi, Feb.5 The Union Cabinet has approved the proposal of the Income-Tax department to establish a centralized processing centre (CPC) at Bangalore for processing all electronically filed returns in the country and paper returns filed in Karnataka. The CPC would enable the department to process the returns and issue refunds expeditiously, the Union Home Minister, Mr P. Chidambaram, told reporters after the Cabinet meeting. It would encourage more taxpayers to resort to electronic filing of returns. The creation of the new centre entails an estimated expenditure of Rs 255.46 crore over a period of five years, he said. The Minister also said that the process of selection of the vendor was in its final stages and the income-tax department expects to operationalise the CPC within the next four months. The data relating to processing of returns would reside in the primary data-centre of the income tax department which has recently been commissioned at New Delhi. The income tax departm

Proof of Leave Travel Allowance

Proof of Leave Travel Allowance The Apex court in a recent order stated that there is no statutory obligation on the employer to collect supporting evidence from the employees claiming LTA/LTC exemption and furnish it to the tax department. Currently, if LTA and conveyance claims are not supported by journey bills they would be taxed. The order came on a plea by Larsen & Toubro and ITI. The bench comprising Justice SH Kapadia and Justice Aftab said that employers are under no statutory obligation to collect supporting evidence and furnish them to tax authorities. The court stated “the beneficiary of exemption U/s 10(5) is an individual employee. There is no circular of Central Board of Direct Taxes requiring the employer under Sec192 to collect and examine the supporting evidence to the declaration to be submitted by an employee”. However the concerned employee must retain such proofs to be presented before I-T Dept. when required.

Prerequisites of Gift Transaction

Prerequisites of Gift Transaction A gift transaction is not acceptable in substance merely because assessee has been able to file documents showing the form of the transactions such as affidavits, deeds, statements and transactions of gift through banking channels; for a gift to be genuine, surrounding circumstances, human probabilities and reality of human life are to be considered for determining genuineness of the gifts; the realities of human life in which a person would be motivated to give gift to another include the relationship between the donors and the donees, and emotional bondages, reciprocity showing that the two sides, one that of donor and the other that of donee are, in normal course, exchanging gifts of similar amounts on different occasions. A person usually makes gifts to other person out of natural love and affection. ITAT, LUCKNOW BENCH ‘B’, LUCKNOW Krishna Mohan Agrawal v ITO ITA No. 811/Luc/05 November 7, 2008 ** ** ** ** ** ** ** ** ** ** ** ** It was held t