How to Check Income Tax Refund Status

Step 1: Login to E-filing website to check if your return for AY 2009-10 has been processed

https://incometaxindiaefiling.gov.in/portal/login.do

Step 2: Go to “My Account” -> select “E-Filing Processing Status”

Step 3: Enter Assessment Year -> 2009-10 and click on ‘Submit’

Step 4: View Processing Status for your return (see highlighted box below). In case of Refund, go to Step 5 to check Refund status. In case or No Demand No refund or Demand, await Intimation from CPC Bangalore

Step 5: To view Refund Status go to Tax Information Network (TIN) Website : https://tin.tin.nsdl.com/oltas/refundstatuslogin.html and enter PAN and Assessment Year and click ‘Submit’

Step 6: View refund Status. In case status is ‘dispatched by speed post’ -> track speed post by clicking on the hyperlinked Speed Post Ref. no: starting with “EY…”. In case ‘Mode of Payment’ is ‘ECS’ then check your Bank Account for Direct Deposit.

Step 7: Or go to http://services.ptcmysore.gov.in/speednettracking/. Enter the ‘Speed Post Ref. no’ in ‘Article Number’ and ‘Date’ in ‘Date of booking’ and click on ‘Track’

Step 8: View Status of Speed Post delivery -> click on ‘Movement’ to view tracking of article (see highlighted box below).

Step 9: Refund may be verified for correctness and in case of any error, the same may be brought to the notice of CPC, Bangalore. Intimation sheet will be directly mailed by Speed Post from CPC Bangalore.

www.mukeshraj.com

GUIDELINES FOR SELECTION OF CASES FOR SCRUTINY DURING 2010-11

GUIDELINES FOR SELECTION OF CASES FOR SCRUTINY DURING 2010-11

  1. Selection of cases for scrutiny during the financial year 2010-11 will be done primarily through CASS this year. Manual Selection for scrutiny this year will be limited only to a few categories of cases listed below.
  2. List of cases selected during each month in accordance with the selection criteria mentioned below shall be submitted by the Assessing Officers to their respective Range heads by the 15th of the following month and also displayed on the Notice Board of their office.
  3. These guidelines are meant only for the use of officers of the Income Tax Department. These are not be disclosed even if a request is made under the right to Information Act, in view of the decision of the Central Information Commission in the case of Shri Kamal Anand Vs Director (ITA-II), CBDT (Order No. CIC/AT/2007/00617 dated 21.02.2008).

SELECTION CRITERIA APPLICABLE TO ALL RETURNS AT ALL STATIONS:

a)    Value of international transaction as defined u/s 92b exceeds Rs. 15 crores.

b)    Cases involving addition in an earlier assessment year in excess of Rs.10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

c)    Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs.10 Lakhs or more.

d)    Assessments in survey cases for the financial year in which survey was carried out This criteria will not apply if all of the following conditions are fulfilled:

(i)            There are no impounded books or documents.

(ii)           There is no retraction of disclosure made during the survey.

(iii)          Declared income, excluding any disclosure made during the survey, is nor less than the declared income of the preceding assessment year.

e)    Assessment in Search & Seizure cases to be made under sections 158B, 158BC, 158BD, 153A 153C & 143(3) of the IT Act.

f)     Assessments initiated under section 147 / 148 of the IT Act.

g)    Assessing Officer may select any return of scrutiny after recording the reasons and obtaining approval of the CCIT/DGIT. The cases under this category should be selected if there are compelling reasons and the case is not selected through CASS. There cases should be watched by CCIT / CIT in respect of the quality of assessment.

Income Tax refund without matching TDS upto 3 lakh -Fy 2009-10

As per new rule of Income tax ,Tds claimed in the income tax return must be matched with data uploaded by the Deductor and data posted in form 26AS(Pan ledger) .Due to these instruction ,many refund orders are pending without any fault of assessee. Moreover Income tax rule has not empower deductee to enforce deductor to file revised return or upload the original return so that mismatching can be removed. So department has issued a Internal Instruction to their officer to settle the small cases of refunds without matching the 100% tds details. New rules are reproduced hereunder.
Processing of returns of Assessment Year 2009-10 – Steps to clear backlog
Instruction No. 5/2010 [F.No.225/25/2010-ITA-II], dated 21-7-2010
The issue of processing of returns for Asst. year 2009-10 and giving credit for TDS has been considered by the Board. In order to clear the backlog of returns, the following decisions have been taken:

  1. In all the returns filed in ITR-1 and ITR-2, for the Asst. Year 2009-10, where the aggregate TDS claim does not exceed Rs. Three lakh (3 lacs) and where the refund computed does not exceed Rs. 25,000; the TDS claim of the tax payer shall be accepted at the time of processing of the return.
  2. In all the returns filed in forms other than ITR-1 and ITR -2, for the Asst. Year 2009-10, where the aggregate TDS claim does not exceed Rs. Three lakh (3 lacs) and the refund computed does not exceed Rs. 25,000 and there is 10% matching of TDS amount claimed, the TDS claim shall be accepted at the time of processing of the return.
  3. In all remaining cases, TDS credit shall be given after due verification.

New Income Tax Return Form SARAL II for Assessment Year 2010-11

CBDT notifies New Income Tax Return Form SARAL II (ITR 1) for Assessment Year 2010-11 for Individuals having income from Salary/Pension/Income from One House Property (Excluding loss brought forward from previous years) / Income from Other Sources (Excluding winning from Lottery and Income from Race Horses). CBDT also notifies Income Tax Return Verification Form ITR-V for Assessment Year 2010-11 for SARAL II (ITR-1) ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature. notification new saral-II

Budget-2010- Direct Tax Proposals

TAX PROPOSALS:

  • The Centralized Processing Centre at Bengaluru is now fully functional and is processing around 20,000 returns daily. Two more Centres will also be established during the year.
  • The Income Tax department has introduced “Sevottam”, a pilot project at Pune, Kochi and Chandigarh through Aayakar Seva Kendras, which provide a single window system for registration of all applications including those for redressal of grievances as well as paper returns.
  • The income tax department to notify SARAL-II form for individual salaried taxpayers for the coming assessment year.
  • Scope of cases which may be admitted by the Settlement Commission expanded to include proceedings related to search and seizure cases pending for assessment.
  • Scope of Settlement Commission also expanded in respect of Central Excise and Customs to include certain categories of cases that hitherto fell outside its jurisdiction.
  • Bi-lateral discussions commenced to enhance the exchange of bank related and other information to effectively track tax evasion and identify undisclosed assets of resident Indians lying abroad.

Direct Taxes

•  Income tax slabs for individual taxpayers to be as follows :

Income upto Rs 1.6 lakh NIL
Income above Rs 1.6 lakh and upto 10 per cent
Rs. 5 lakh
Income above Rs.5 lakh and upto Rs. 20 per cent
8 lakh
Income above Rs. 8 lakh 30 per cent

•  Taxability on Taxable income of Rs. 10 Lakhs :

OLD NEW SAVING
MALE 210,120.00 158,620.00 51,500.00
FEMALE 207,030.00 155,530.00 51,500.00
SENIOR
CITIZEN 201,880.00 150,380.00 51,500.00
  • Deduction of an additional amount of Rs. 20,000 allowed, over and above the existing limit of Rs.1 lakh on tax savings, for investment in long-term infrastructure bonds as notified by the Central Government.
  • Besides contributions to health insurance schemes which is currently allowed as a deduction under the Income-tax Act, contributions to the Central Government Health Scheme also allowed as a deduction under the same provision.
  • Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent.
  • Rate of Minimum Alternate Tax (MAT) increased from the current rate of 15 per cent to 18 per cent of book profits.
  • Weighted deduction on expenditure incurred on in-house R&D enhanced from 150 per cent to 200 percent. Weighted deduction on payments made to National Laboratories, research associations, colleges, universities and other institutions, for scientific research enhanced from 125 per cent to 175 per cent.
  • Payment made to an approved association engaged in research in social sciences or statistical research to be allowed as a weighted deduction of 125 per cent. The income of such approved research association shall be exempt from tax.
  • Benefit of investment linked deduction under the Act extended to new hotels of two-star category.
  • Allow pending projects to be completed within a period of five years instead of four years for claiming a deduction of their profits, as a one time interim relief to the housing and real estate sector.
  • Limits for turnover over which accounts need to be audited enhanced to Rs. 60 lakh for businesses and to Rs. 15 lakh for professions.
  • Limit of turnover for the purpose of presumptive taxation of small businesses enhanced to Rs. 60 lakh.
  • If tax has been deducted on payment by way of any expense and is paid before the due date of filing the return, such expenditure to be allowed for deduction.
  • Interest charged on tax deducted but not deposited by the specified date to be increased from 12 per cent to 18 per cent per annum.
  • Increase in threshold limit for tax deduction at source :
Section Nature of Payment Existing Revised Applicability
threshold limit of threshold
Payment limit of
(Rupees) Payment
(Rupees)
194B Winnings from lottery 5,000 10,000 Ist July,
or crossword puzzle 2010
194BB Winnings from horse 2,500 5,000 Ist July,
race 2010
194C Payment to 20,000* 30,000* Ist July,
contractors 2010
50,000** 75,000** Ist July,
2010
194D Insurance 5,000 20,000 Ist July,
commission 2010
194H Commission or 2,500 5,000 Ist July,
Brokerage 2010
194-I Rent 1,20,000 1,80,000 Ist July,
2010
194J Fees for professional 20,000 30,000 Ist July,
or technical services 2010
  • No Capital gain transfer of assets as a result of conversion of small companies into Limited Liability Partnerships.
  • The advancement of any other object of general public utility” to be considered as “charitable purpose” even if it involves carrying on of any activity in the nature of trade, commerce or business provided that the receipts from such activities do not exceed Rs.10 lakh in the year .
  • Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore for the year.

New TDS Rules

NEW TDS RULES NOTIFIED

Income-tax (First Amendment) Rules, 2010

Notification No. 9/2010/F.No. 142/27/2009-SO(TPL), dated 17-2-2010

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961     (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1.                  (1)        These rules may be called Income-tax (First Amendment) Rules, 2010.

(2)   They shall come into force from the 1st day of April, 2009.

2.                  In the Income-tax Rules, 1962, –

(a)                for rules 30, 31 and 31A the following rules shall be substituted, namely:-

“Time and mode of payment to Government account of tax deducted at source or tax paid under sub-section (1A) of section 192.

30. (1) All sums deducted in accordance with the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194LA, section 195, section 196A, section 196B, section 196C and section 196D shall be paid to the credit of the Central Government—

(a) in the case of deduction by or on behalf of the Government, on the same day;

(b) in the case of deduction by or on behalf of persons other than those mentioned in clause (a),—

(i) in respect of sums deducted in accordance with the provisions of section 193, section 194A, section 194C, section 194D, section 194E, section 194G, section 194H, section 194-I, section 194J, section 195, section 196A, section 196B, section 196C and section 196D—

(1) where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D or the payment to non-resident sportsmen or sports associations referred to in section 194E or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H or the income by way of rent referred to in section 194-I or the income by way of fees for professional or technical services referred to in section 194J or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, within two months of the expiration of the month in which that date falls;

(2) in any other case, within one week from the last day of the month in which the deduction is made; and

(ii) in respect of sums deducted in accordance with the other provisions within one week from the last day of the month in which the deduction is made:

Provided that the Assessing Officer may, in special cases, and with the approval of the Joint Commissioner—

(a) in cases falling under sub-clause (i), permit any person to pay the income-tax deducted from any income by way of interest, other than income by way of interest on securities or any income by way of insurance commission or any income by way of commission or brokerage referred to in section 194H quarterly on July 15, October 15, January 15 and April 15; and

(b) in cases falling under sub-clause (ii), permit an employer to pay income-tax deducted from any income chargeable under the head “Salaries” quarterly on June 15, September 15, December 15 and March 15.

(1A) All sums paid under sub-section (1A) of section 192 shall be paid to the credit of the Central Government—

(a) in the case of payment on behalf of the Government, on the same day;

(b) in all other cases, within one week from the last day of each month on which the income-tax is due under sub-section (1B) of section 192.

(2) The person responsible for making the deduction from any income chargeable under the head “Salaries” or, the person who pays tax, referred to in sub-section (1A) of section 192 or, in cases covered by sub-section (5) of section 192, the trustees shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized bank accompanied by an income-tax challan  :

Provided that where the deduction or payment, as the case may be, is made by or on behalf of Government, the amounts shall be credited within the time and in the manner aforesaid without the production of a challan.

(3) The person responsible for making deduction under sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194H, 194-I, 194J, 194K, 195, 196A , 196B , 196C and 196D shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized bank accompanied by an income-tax challan, provided that where the deduction is made by or on behalf of Government the amount shall be credited within the time and in the manner aforesaid without the production of a challan.

Certificate of tax deducted at source or tax paid under sub-section (1A) of section 192.

31. (1) The certificate of deduction of tax at source or, the certificate of payment of tax by the employer on behalf of the employee, under section 203 to be furnished by any person deducting tax in accordance with the provisions of—

(a) section 192 shall be in Form No. 16 :

Provided that in the case of an individual, resident in India, where his income from salaries before allowing deductions under section 16 of the Income-tax Act, 1961 does not exceed rupees one lakh fifty thousand, the certificate of deduction of tax at source shall be in Form No. 16AA;

(b)               section 193, section 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194-I, section 194J, section 194K,section 194LA, section 195, section 196A, section 196B, section 196C and section 196D shall be in Form No. 16A.

(2) The certificate mentioned in sub-rule (1) shall be furnished within a period of one month from the end of the month during which the credit has been given or the sums have been paid or, as the case may be, a cheque or warrant for payment of any dividend has been issued to a shareholder:

Provided that where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D or the payment to non-resident sportsmen or sports associations referred to in section 194E or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H or the income by way of rent referred to in section 194-I or the income by way of fees for professional or technical services referred to in section 194J or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in  sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the account of such person are made, the certificate under sub-rule (1) shall be issued within a week after the expiry of two months from the month in which income is so credited :

Provided further that the certificate in the case of deduction of tax under sub-section (1) of section 192  or, payment of tax by the employer on behalf of the employee, under sub-section (1A) of that section or section 194D may be furnished within one month from the close of the financial year in which such deduction was made :

Provided also that the certificate in cases, other than those mentioned in the second proviso, where payment of income-tax deducted is permitted quarterly in accordance with clause (a) of the proviso to clause (b) of sub-rule (1) of rule 30 may be furnished within fourteen days from the date of payment of income- tax:

Provided also that where more than one certificate is required to be furnished to a payee for deductions of income-tax made during a financial year, the person deducting the tax, may on request from such payee, issue within one month from the close of such financial year a consolidated certificate in Form No. 16A for tax deducted during whole of such financial year.

(3) Where in a case, the TDS certificate issued under this rule is lost, the person deducting tax at source may issue a duplicate certificate of deduction of tax at source on a plain paper giving necessary details as contained in Form No. 16 or Form No. 16A , as the case may be.

(4) The Assessing Officer before giving credit for the tax deducted at source on the basis of duplicate certificate referred to in sub-rule (3), shall get the payment certified from the Assessing Officer designated in this behalf by the Chief Commissioner or the Commissioner and shall also obtain an Indemnity Bond from the assessee.

Quarterly statement of deduction of tax under sub-section (3) of section 200.

31A.(1) Every person, being a person responsible for deducting tax under Chapter XVII-B shall, in accordance with the provisions of sub-section (3) of section 200, deliver or cause to be delivered to the Director-General of Income-tax (Systems) or the person authorized by the Director General of Income-tax (Systems), quarterly statement—

(i) in Form No. 24Q in respect of deduction of tax at source under sub-sections (1) and (1A) of section 192; and

(ii) in Form No. 26Q in respect of other cases of deduction of tax at  source,

on or before the 15th July, the 15th October, the 15th January in respect of the first three quarters of the financial year and on or before the 15th June following the last quarter of the financial year :

Provided that where,—

(a)  the deductor is an office of Government; or

(b) the deductor is a company; or

(c ) the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

(d) the number of deductees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,

the person responsible for deducting tax at source, and the principal officer in  the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5” 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):

Provided further that a person other than a person referred to in the first proviso, responsible for deducting tax at source, may at his option, deliver or cause to be delivered the quarterly statements on computer media (3.5 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):

Provided also that a person responsible for deducting tax at source from the payments referred to in rule 37A shall furnish quarterly statements in accordance with the provisions of rule 37A and rule 37B.

(2) The person responsible for deducting tax at source and preparing quarterly statements shall,—

(i) quote his tax deduction and collection account number (TAN) and permanent account number (PAN) in the quarterly statement:

Provided that the permanent account number shall not be required to be quoted where tax has been deducted by or on behalf of the Government;

(ii) quote the permanent account number of all persons in respect of whose income, tax has been deducted:

Provided that the permanent account number shall not be quoted in respect of the persons to whom the second proviso to sub-section (5B) of section 139A of the Act applies;

(iii) furnish particulars of the tax paid to the Central Government.

(3) The person responsible for deducting tax at source and preparing quarterly statements on computer media shall, in addition to the provisions in sub-rule  (2),—

(i) prepare the quarterly statement as per the data structure provided by the e-filing Administrator designated by the Board for the purposes of administration of Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003 supported by a declaration in Form No. 27A in paper format:

Provided that in case any compression software has been used for preparing the quarterly statement on computer media, such compression software shall be furnished on the same computer media;

(ii) affix a label indicating name, permanent account number, tax deduction and collection account number and address of the person responsible for deduction of tax at source, the period to which the statement pertains and the volume number of the said computer media in case more than one volume of such media is used”.

(b)         after rule 31A the following rule shall be inserted, namely:-

“Quarterly statement of collection of tax under sub-section (3) of section 206C.

31AA. (1) Every person, being a person responsible for collecting tax under section 206C shall, in accordance with the proviso to sub-section (3) of section 206C, deliver or cause to be delivered to the Director-General of Income-tax (Systems) or the person authorized by the Director General of Income-tax (Systems), quarterly statement in Form No. 27EQ on or before the 15th July, the 15th October, the 15th January in respect of the first three quarters of the financial year and on or before the 30th April following the last quarter of the financial year :

Provided that where,—

(a) the collector is an office of Government; or

(b) the collector is a company; or

(c) the collector is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

(d) the number of collectees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,

the person responsible for collecting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5” 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):

Provided further that a person other than a person referred to in the first proviso, responsible for collecting tax at source, may at his option, deliver or cause to be delivered the quarterly statements on computer media (3.5 1.44 MB floppy diskette or CD-ROM of 650 MB capacity).

(2) The person responsible for collecting tax at source and preparing quarterly statements shall,—

(i) quote his tax deduction and collection account number (TAN) and permanent account number (PAN) in the quarterly statement:

Provided that the permanent account number shall not be required to be quoted where tax has been collected by or on behalf of the Government;

(ii) quote the permanent account number of all persons in respect of whose income, tax has been collected;

(iii) furnish particulars of the tax paid to the Central Government.

(3) The person responsible for collecting tax at source and preparing quarterly statements on computer media shall, in addition to the provisions in sub-rule  (2),—

(i) prepare the quarterly statement as per the data structure provided by the e-filing Administrator designated by the Board for the purposes of administration of Electronic Filing of Returns of Tax Collected at Source Scheme, 2005 supported by a declaration in Form No. 27B in paper format:

Provided that in case any compression software has been used for preparing the quarterly statement on computer media, such compression software shall be furnished on the same computer media;

(ii)                affix a label indicating name, permanent account number, tax deduction and collection account number and address of the person responsible for collection of tax at source, the period to which the statement pertains and the volume number of the said computer media in case more than one volume of such media is used.”

(c)          after rule 37 the following rule shall be inserted, namely:-

“Returns regarding tax deducted at source in the case of non-residents.

37A. The person making deduction of tax in accordance with sections 193, 194, 194E, 195, 196A, 196B, 196C and 196D of the Act from any payment made to—

(i) a person, not being a company, who is a non-resident or a resident but not ordinarily resident, or

(ii) a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India ;

shall send within fourteen days from the end of the quarter a statement in Form No. 27Q to the Director General of Income-tax (Systems) or the person or agency authorized by the Director General of Income-tax (Systems) referred to in rule 36A :

Provided that where the income by way of interest on securities referred to in section 193 or the payment to non-resident sportsmen or sports associations referred to in section 194E or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, the statement in Form No. 27Q shall be sent within fourteen days after the expiry of two months from the month in which income is so credited.”

(d) for rules 37CA and 37D the following rules shall be substituted, namely:-

“Time and mode of payment to Government account of tax collected at source under section 206C.

37CA. (1) All sums collected in accordance with the provisions of sub-section (1) or sub-section (1C) of section 206C shall be paid to the credit of the Central Government within one week from the last day of the month in which the collection is made.

(2) The person responsible for making collection under sub-section (1) or sub-section (1C) of section 206C shall pay the amount of tax so collected to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized bank accompanied by an income-tax challan:

Provided that where the collection is made by or on behalf of the Government, the amount shall be credited within the time and in the manner aforesaid without the production of a challan.

Certificate for collection of tax at source under section 206C (5).

37D. (1) The certificate of collection of tax at source under sub-section (5) of section 206C to be furnished by any person collecting tax at source under sub-section (1) or sub-section (1C) of that section shall be inForm No. 27D.

(2) The certificate referred to in sub-rule (1) shall be furnished within a period of one month from the end of the month during which the amount is debited to the account of the buyer or licensee or lessee or payment is received from the buyer or licensee or lessee, as the case may be:

Provided that where more than one certificate is required to be furnished to a buyer or licensee or lessee for tax collected at source in respect of the period ending on the 30th September and the 31st March in each financial year, the person collecting the tax, may on request from such buyer or licensee or lessee , issue within one month from the end of such period, a consolidated certificate in Form No. 27D for tax collected during whole of such period.

(3) Where in a case, the certificate for tax collected at source issued under this rule is lost, the person collecting tax at source may issue a duplicate certificate of collection of tax at source on a plain paper giving necessary details as contained in Form No. 27D.

(4) The Assessing Officer before giving credit for the tax collected at source on the basis of duplicate certificate referred to in sub-rule (3), shall get the payment certified from the Assessing Officer designated in this behalf by the Chief Commissioner or Commissioner and shall also obtain an Indemnity Bond from the assessee. ”;

(e)        for Form No.16 and Form no. 16A the following forms shall be substituted, namely:-

TDS on Salary during the year 2009-2010 circular

DEDUCTION OF TAX AT SOURCE —INCOME–TAX DEDUCTION FROM SALARIES UNDER SECTION 192 OF THE INCOME–TAX ACT, 1961 DURING THE FINANCIAL YEAR 2009-2010
CIRCULAR NO.1/2010
F.No.275/192/2009IT(B)]
NEW DELHI, dated the 11th January,2010

GOVERNMENT OF INDIA  MINISTRY OF FINANCE  DEPARTMENT OF REVENUE  CENTRAL BOARD OF DIRECT TAXES  DEDUCTION OF TAX AT SOURCE —INCOME–TAX DEDUCTION FROM SALARIESUNDER SECTION 192 OF THEINCOME–TAX ACT, 1961DURING THE FINANCIAL YEAR 2009-2010CIRCULAR NO.1/2010F.No.275/192/2009IT(B)]NEW DELHI, dated the 11th January,2010

Please download circular from below link

Circular on TDS on Salary

Budget update 2009- Direct Tax

Budget Update by CA. Sudha Gupta and CA. Vinay Bhushan

Here are the salient features of the Budget 2009

DIRECT TAX

  • Exemption of threshold limit for personal income tax raised by
  • For senior Citizens Rs.15,000 from Rs.2.25 lakh to Rs.2.40 lakh
  • For women tax payers by Rs.10,000 from Rs.1.80 lakh to Rs.1.90 lakh
  • Other categories of individual taxpayers by Rs.10,000 from Rs.1.50 lakh to Rs.1.60 lakh for all

Surcharge of 10% on personal income tax removed.[not for corporate entities ]

  • Threshold limit for payment of wealth tax to be increased from INR 1.5 million to INR 3 million.
  • Fringe Benefit Tax on the value of certain fringe benefits provided by employers to their employees to be abolished
  • Deduction under section 80-DD in respect of maintenance, including medical treatment, of a dependent who is a person with severe disability being raised from the present limit of Rs.75,000/- to Rs.1,00,000/-
  • Deduction under section 80E of the Income-tax Act allowed in respect of interest on loans taken for higher education by an individual extends to any course of study pursued after passing senior secondary examination or its equivalent
  • Section 10 A and Section 10 B [deduction in respect of export profits] extended by one more year i.e. for the financial year 2010-11.
  • Minimum Alternate Tax (MAT) to be increased to 15 % of book profits from 10 %. The period allowed carrying forward the tax credit under MAT to be extended from seven years to ten years.
  • Scope of provisions relating to weighted deduction of 150% on expenditure incurred on in-house R&D to all manufacturing businesses being extended except for a small negative list.
  • Changes in the Rates of Tax Deducted at Source [w.e.f 1st Oct 2009]
Section Nature of Payment Type of Deductee Old Rate New Rate
194 I Rent of plant, machinery or equipment Any 10% 2%
Rent of land building or furniture Individual and HUF 15% 10%
Rent of Land, building or furniture Other than Individual and HUF 20% 10%
194C Payment to contractors Individual or HUF 2% 1%
Payment to contractors Other than Individual or HUF sub contractor 1% 2%
For advertising Other than individual/HUF contractor/sub Contractor 1% 2%
Sub contractor / contractor in transport business Any 1% / 2% nil
  • Commodity Transaction Tax (CTT) to be abolished.
  • Donations to electoral trusts to be allowed as a 100 percent deduction in the computation of the income of the donor.
  • Anonymous donations received by charitable organizations to the extent of 5 percent of their total income or a sum of Rs.1 lakh, whichever is higher, not to be taxed.
  • Presumptive taxation scope to be extended to all small businesses with a turnover upto Rs. 40 lakh. All such taxpayers to have option to declare their income from business at the rate of 8 percent of their turnover and simultaneously enjoy exemption from the compliance burden of maintaining books of accounts. As a procedural simplification, they are also to be exempted from advance tax and allowed to pay their entire tax liability from business at the time of filing their return. This new scheme to come into effect from the financial year 2010-11.
  • Tax holiday under section 80-IB(9) of the Income Tax Act, which was hitherto available in respect of profits arising from the commercial production or refining of mineral oil, to be extended to natural gas. This tax benefit to be available to undertakings in respect of profits derived from the commercial production of mineral oil and natural gas from oil and gas blocks which are awarded under the NELP-VIII round of bidding. The section to be retrospectively amended to provide that “undertaking” for the purposes of section 80-IB(9) will mean all blocks awarded in any single contract.
  • No change in corporate tax rates.
  • LLPs to be taxed in the same manner as general partnerships. Conversion of general partnership to LLP to have no tax implications if rights and obligations remain same and there is no transfer of any asset or liability.
  • Arm’s length price to be the arithmetical mean in cases where more than one price is determined by the most appropriate method. However, if such arithmetical mean is within 5% of the transfer price, then the transfer price declared will be deemed to be the arm’s length price.
  • Weighted deduction of 150% allowed under Section 35 for R&D to be extended to all manufacturers other than those engaged in items specified in the Eleventh Schedule of the Income Tax Act, 1961.
  • Tax holiday under section 80-IB(9) to be extended to natural gas from blocks awarded under the NELP-VIII round of bidding. Definition of “undertaking” to be inserted with retrospective effect from 1 April 2000, to mean all blocks awarded in any single contract by the Government of India in case of mineral oil and natural gas.
  • Taxation of gifts received in excess of INR 50,000 (without consideration or for inadequate consideration) to be extended to immovable property (land and/or building), shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures or any work of art. Stamp duty value in case of immovable property and fair market value in case of movable property to be computed.

FAQ On Housing Loan

Q-1 What are Income tax benefits of taking a housing loan under EMI Plan?

 

First Equated monthly instalment (EMI) amount is to be divided into the principal and interest components.

 

The repayment of principal amount of the loan can be claimed as a deduction under section 80C up to a maximum amount of Rs.1 lakh. The repayment of the interest portion of the EMI is also allowed as a deduction under section 24 under the head “income from house property” upto Rs.1,50,000/- for self occupied property and full amount in case of let-out property.

 

 

Q-2 If I buy a house jointly with my wife and take a joint home loan, Can we both claim income tax deduction?

 

Ans:-Yes, if your wife is working and has a separate source of income, both of you can claim separate deductions in your income tax returns.

 

The repayment of principal amount of the loan can be claimed as a deduction under section 80C up to a maximum amount of Rs.1 lakh individually by each co-owner.

 

In cases where the house is owned by more than one person and is also self-occupied by each co-owner, each co-owner shall be entitled to the deduction individually on account of interest on borrowed money up to a maximum amount of Rs. 1.5 lakh. If the house is given on rent, there is no restriction on this amount. Both co-owners can claim deductions in the ratio of ownership.

 

Q-3 My husband and I have jointly taken a home loan. He pays 75 percent of the EMI. What will be our individual tax benefits?

 

Ans: – As you have taken a joint home loan, both of you are eligible for tax exemption for your share of the EMI paid. For claiming income tax deduction, the EMI amount is divided into the principal and interest components. The repayment of the principal amount of loan is claimed as a deduction under section 80C of the Income Tax Act up to a maximum amount of Rs. 1lakh individually by each co-owner. The repayment of the interest portion of the EMI is also allowed as a deduction under section 24 of the Act, which is given under the head “income from house property”. In case you are living in the house for which home loan is taken, both of you shall be entitled to deduction in the ratio (3:1) on account of interest on borrowed money up to a maximum of Rs. 1.5 lakh individually. If the house is given on rent, there is no restriction on this amount and both co-owners can claim deduction in the ratio of ownership- 3:1 in your case.

 

Q– I plan to buy a house by raising loans from friends and relatives. Will I be eligible for tax benefit from all sources?

 

Ans:Interest payment to friends and relatives can be claimed u/s 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction. The recipient of interest income who issues the certificate is liable to pay tax on the interest income that he receives. As far as the principal payments are concerned, they would not qualify for tax benefit as loans only from notified institutions and banks are eligible for such deductions.

Scrutiny of FBT returns

GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF REVENUE (Central Board of Direct Taxes)
Subject: Scrutiny of FBT returns – regarding
Instruction No.11 /2008
File No.225/44/2008-ITA-II

Date.05 Sep 2008

Instruction

To,

All Chief Commissioners of Income tax/
All Directors General of Income Tax
Scrutiny of FBT returns – regarding.
Kindly refer to above.


2. I am directed to state that all the Corporate cases selected for scrutiny as per the guidelines contained in the Action Plan document 2008-09 which have returned income to Rs.5 crore or more and where provisions of Fringe Benefit Tax (FBT) apply, assessment order shall also be passed u/s 115 WE of the Income-tax Act, 1961 after scrutiny of all such cases.

This may be brought to the notice of all concerned.

Sd/-

(Renu Jauhri)

Director (ITA-II)