Permanent Account Number (PAN) Mandatory...!!! DEMAT Accounts will be suspended w.e.f. 16-08-2010.

Mandatory requirement of Permanent Account Number (PAN)

Circular No. MRD/DP/22/2010, dated 29-7-2010

1. Please refer to SEBI circular No.MRD/DoP/Cir-05/2007 dated April 27, 2007 making PAN mandatory for all transactions in the securities market.

2. As you are aware, the demat accounts for which PAN details have not been verified are “suspended for debit” until the same is verified with the Depository Participant (DP). However, it has come to our notice that despite follow up, investors are not furnishing the PAN details.

3. In order to ensure better compliance with the Know Your Client (KYC) norms it has been decided that with effect from August 16, 2010 such PAN non-compliant demat accounts shall also be "suspended for credit" other than the credits arising out of automatic corporate actions. It is clarified that other credits including credits from IPO/FPO/Rights issue, off-market transactions or any secondary market transactions shall not be allowed into such accounts.

4. The Depositories are advised to:-

a) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary ;

b) bring the provisions of this circular to the notice of their DPs and advising them to also communicate the same to all the Beneficial Owners (BOs); and

c) disseminate the same on the website.

5. This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market.

Kindly note that SEBI has decided to penalise errant investors for not furnishing PAN details. The regulator has decided that PAN non-compliant demat accounts would be suspended for credit from IPO, FPO, rights issue, off-market transactions or secondary market transactions with effect from August 16,2010. This suspension, however, would not apply for credits arising out of automatic corporate actions. Depositories have been advised to amend relevant bye-laws, rules and regulations, for implementing the decision immediately.

GOOD NEWS - YOU CAN CHECK YOUR ITR-V/ E FILING PROCESSING STATUS ONLINE NOW

Those assessees who have filed their Income Tax return online(e filing ) without digital signature have to furnish the ITR-V form within 120 days from date of uploading of the Income tax return (xml File) to the Central processing cell at Bangalore .Further Income Tax deptt has issued Press release that ITR -V should only be send through ordinary post only and speed post, registered post and courier will not be received .Then, How person will be know whether The ITR-V has reached at the Bangalore office or not? and some confirmation should be there in e-filing portal or person should be informed through email about the ITR-V status .

Good news is that Income tax deprt has now added a link in e filing site by name "e filing processing status" under My Account Menu.To know your e filing Processing status.To know your ITR-V/E filing return processing status follow this steps as Given below .

Login to the e filing site with your pan and password.

Go to the "My Account " tab

In drop down menu under My account Tab click " e- filing processing status"

In next screen -- fill you ITR-V acknowledgement Number and Select your assessment year.

You will get status of your return/ITR-V processing status in next screen.

Further Income tax department clarified that copy of ITR-V sent by them to CPC Bangalore will be scanned after stamping receipt number and date of receipt and the same shall be made available to taxpayers on request through email shortly.

Please await further information on procedure for the same.

Department has now started emailing the Acknowledgement as token of receipt for ITR -V on reaching at Bangalore office but due to rush it will take time.

This is a welcome step by the Income tax Department. Yah we are in digital age know....

(Curtesy: Simple tax)

Is your Gross Total Income More than Exemption Limit ? Income Tax Return Compulsory !!!

Every person/Individual thinks that he need not file an I.T.Return if there is no recovery of IT from his salary or below the exempted limit. But while carefully studying the statue, we can arrive at a conclusion that we have to file ROI if....

For Assessment year 2010-11 Exemption Limit for Individual is given below

For Male Resident =160000
For Female resident=190000
For senior citizen resident =240000
For Huf=160000
For other Individuals =160000

Let us see the statue:

"Provided also that every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of section 10A or section 10B or section 10BA or Chapter VI-A exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed."

As per section 139(1) proviso ,income tax return is to be filed if person gross total income not net taxable income , is More than exemption limit means if you have earned 2,50000 in Fy 2009-10 and saved 100000(u/s 80C) and your net taxable income is 250000-100000=150000 Rs even then as per Income tax act,you have to file return as your Gross total income(250000) is more than 160000 .So as per above rule to check whether Income is more than exemption limit or not for Income Tax return filing purpose ,we should consider income before giving effect to deduction under Chapter VIA ie deduction u/s 80C to 80U.More over while considering income for Income tax tax return purpose person should not give effect to exemption under section 10A and 10B and 10BA.

So be ready for filing of return if your Gross total Income Is more than exemption limit or even your employer has deducted due tds on your income. As it is mandatory to file retrun of income to such persons .

Due date to file Income tax for Non -audit cases for assessment year 2010-11 is 31.07.2010.

No disallowance u/s 40(a)(ia) if TDS paid before due date of filing ROI

The assessee made payments to sub-contractors during the previous year and though s. 194C requires TDS at the stage of payment/credit, did not do so. The tax was, however, deducted on 31st March and paid over in Sept before the due date for filing the return. The AO took the view that while the payment made to the sub-contractor for March was allowable, the payments for the earlier months was disallowable u/s 40(a)(ia). This was confirmed by the CIT (A). On appeal by the assessee, HELD allowing the appeal:
Failure to deduct or deposit tax as per s. 194C or Chapter-XVII makes the assessee liable to the consequences provided under the said Chapter-XVII. However, s. 40(a)(ia) is in addition to Chapter XVII. S. 40(a)(ia)(A) provides that if tax is deducted during the last month of the previous year and paid on or before the due date of filing of return as per s. 139(1), then such sum shall be allowed as deduction. In cases where tax is deducted other than the last month of previous year but is deposited before the last day of the previous year, then it will be allowed as deduction. Therefore, the conditions for allowability of deduction are prescribed u/s 40(a)(ia) itself and Chapter-XVII and s. 194C are not relevant. If the condition of deduction and payment prescribed u/s 194C / Chapter XVII are held applicable for dis-allowance of deduction u/s 40(a)(ia), then s. 40(a)(ia) will be rendered meaningless, absurd and otiose. Since the assessee had (belatedly) deducted tax in the last month of the previous year i.e. March 2005 and deposited the same before the due date of filing the return u/s 139(1), deduction had to be allowed u/s 40(a)(ia) (A).
Bapushaeb Nanasaheb Dhumal vs. ACIT (ITAT Mumbai)

Note: S. 40(a)(ia) has been amended by the FA 2010 w.e.f. 1.4.2010, to provide that in all cases if TDS is paid before the due date of filing the ROI, no disallowance shall be made.

The text of the same is reproduced hereunder for ready reference:

The existing provisions of section 40(a)(ia) of Income-tax Act provide for the disallowance of expenditure like interest, commission, brokerage, professional fees, etc. if tax on such expenditure was not deducted, or after deduction was not paid during the previous year. However, in case the deduction of tax is made during the last month of the previous year, no disallowance is made if the tax is deposited on or before the due date of filing of return.

It is proposed to amend the said section to provide that no disallowance will be made if after deduction of tax during the previous year, the same has been paid on or before the due date of filing of return of income specified in sub-section (1) of section 139.

This amendment is proposed to take effect retrospectively from 1st April, 2010 and will, accordingly, apply in relation to the assessment year 2010-11 and subsequent years.

RELATED CLAUSE REPRODUCED HEREUNDER

12. In section 40 of the Income-tax Act, in clause (a), in sub-clause (ia),—
(a) for the portion beginning with the words “has not been paid,—” and ending with the words “the last day of the previous year”, the words, brackets and figures “has not been paid on or before the due date specified in sub-section (1) of section 139” shall be substituted;

(b) for the proviso, the following proviso shall be substituted, namely:—

”Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in subsection (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.”.

(Curtesy : Simple tax)

Funny joke on Taxes - Enjoy

1) Qus. : What are you doing? Ans. : Business. Tax : PAY PROFESSIONAL TAX!
2) Qus. : What are you doing in Business? Ans. : Selling the Goods. Tax : PAY SALES TAX!!
3) Qus. : From where are you getting Goods? Ans. : From other State/Abroad Tax : PAY CENTRAL SALES TAX, CUSTOM DUTY & OCTROI!
4) Qus. : What are you getting in Selling Goods? Ans. : Profit. Tax : PAY INCOME TAX!
5) Qus. : How do you distribute profit ? Ans : By way of dividend Tax : Pay dividend distribution Tax
6) Qus. : Where you Manufacturing the Goods? Ans. : Factory. Tax : PAY EXCISE DUTY!
7) Qus. : Do you have Office / Warehouse/ Factory? Ans. : Yes Tax : PAY MUNICIPAL & FIRE TAX!
8) Qus. : Do you have Staff? Ans. : Yes Tax : PAY STAFF PROFESSIONAL TAX!
9) Qus. : Doing business in Millions? Ans. : Yes Tax : PAY TURNOVER TAX! Ans : No Tax : Then pay Minimum Alternate Tax
10) Qus. : Are you taking out over 25,000 Cash from Bank? Ans. : Yes, for Salary. Tax : PAY CASH HANDLING TAX!
11) Qus.: Where are you taking your client for Lunch & Dinner? Ans. : Hotel Tax : PAY FOOD & ENTERTAINMENT TAX!
12) Qus.: Are you going Out of Station for Business? Ans. : Yes Tax : PAY FRINGE BENEFIT TAX!
13) Qus.: Have you taken or given any Service/s? Ans. : Yes Tax : PAY SERVICE TAX!
14) Qus.: How come you got such a Big Amount? Ans. : Gift on birthday. Tax : PAY GIFT TAX!
15) Qus.: Do you have any Wealth? Ans. : Yes Tax : PAY WEALTH TAX!
16) Qus.: To reduce Tension, for entertainment, where are you going? Ans. : Cinema or Resort. Tax : PAY ENTERTAINMENT TAX!
17) Qus.: Have you purchased House? Ans. : Yes Tax : PAY STAMP DUTY & REGISTRATION FEE !
18) Qus.: How you Travel? Ans. : Bus Tax : PAY SURCHARGE!
19) Qus.: Any Additional Tax? Ans. : Yes Tax : PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL & SURCHARGE ON ALL THE CENTRAL GOVT.'s TAX !!!
20) Qus.: Delayed any time Paying Any Tax? Ans. : Yes Tax : PAY INTEREST & PENALTY!
21) INDIAN :: Can I Die Now?? Ans :: Wait a while, Pronobda is about to launch the funeral tax!!!

Penalty on late filing of Returns

Specific penalty for late filing of return is prescribed u/s 271F which reads as:

"If a person failure to furnish return of income as required by section 139 before the end of relevant assessment year, the assessing officer may impose a penalty of Rs 5000/-"

so this section says end of relevant assessment year,as for previous year 2009-10, assessment year is 2010-11 and its end on 31.03.2011 ,means there is no liability for late filing of income tax return up to 31.03.2011 and after that assessing officer can impose a penalty of 5000,and that is also his(AO) power which he may or may not exercise after giving due hearing to the assessee.


Now you would like to know why people are so much worried about the due date, the reason is that as due date has been linked with various other section of the income tax act,so it is significant in that manner .


so we have to see the impact of late filing of the Income tax return and issues related to due date of income tax.

Impact of late filing of Income tax return & issue related to due date (This is illustrative and not exaustive).

Interest u/s 234A: If there is tax due after deducting advance tax ,TDS and self assessment tax than interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C. Means this interest is applicable only if there is any tax payable in your return.

Loss of Interest on refund: You may loose interest on refund u/s 244A as delay in filing is attributable to assessee for the period by which you have filed late return.

Audit Report: Person who are liable to get their accounts audited should get the audit report on or before the due date of filing return i.e 30.09.2010. Audit repot is only to be prepared and not to be filed any where.In simple word or boldly we can say that if audit report has been signed before 30.09.2008 that is enough, you can file return late and report particulars will be filled when ever you filed your income tax return.This is as income tax circular no 5/2007 point no 6 (read full circular)

Revised return :Late /belated return can not be revised .
Some of deduction under subsection 80 are not available for late return.
Due date of income tax return is related to TDS deposite and disallowance u/s 40A(ia).

Due date of Income Tax return is related to tax saving u/s 54,54B,54F and some other issues in capital gain saving account deposit scheme.

Not able to carry forward the losses under various heads:

you are not able to carry forward following type of losses if file return after due date
Speculation loss
business loss excluding loss due to unabsorbed depreciation and capital exp on scientific research
short term capital loss
long term capital loss
loss due to owning and maint. of horse races
However there is no impact on following type of losses even if return is furnished after the due date
loss from house property
business loss on account of unabsorbed depreciation and capital expenditure on scientific research.

(though delay can be condoned as per circular 8/2001 DT 16.5.2001 on fulfilling of certain condition)

so if you are ambit of the above points then you should furnish your return up to 31.07.2010 or 30.09.2010 as the case may be without any penalty.


Person who can afford to file late return


If you have
already deposited due tax or due taxes has been deducted by your employer and nothing is due or
you are not claiming a Major amount as refund or
you have no losses to be carried forward
then you can fill return up to the end of the assessment year ie 31.03.2011 without any penalty.

Person who should file return on time.


If you have
balance tax to be deposited or short fall of tax or
huge amount of refund due to you or
you have losses to be carried forwarded as explained above
then rush to the department asap so that return can be filled on time.

TDS Refund without matching upto 3 lakh -FY 2009-10

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:

(i) 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.

(ii) 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.

(iii) In all remaining cases, TDS credit shall be given after due verification .


As per new rules,Tds claimed in the income tax return must be matched with data uploaded by the Deductor and data posted in form 26AS i.e, 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

(Thanks to Simpletax blog)


Similar instructions were issued for the FY 2008-09 also.

The Instruction reference is "Instruction No. 1/2010, dated 25-2-2010".

COST INFLATION INDEX FOR FY 2010-11 DECLARED

Cost Inflation Index for Financial year 2010-11 has been notified by CBDT vide his circular 59/2010 dated 21.07.2010. This New index figure is to be used to calculate Long term capital gain on the sale of capital assets during Financial Year 2010-11.Further I have complied Cost inflation index from 1981-2011 in sheet shown below ,which can also be downloaded in pdf format from the link given in the sheet.

Section 48, Explanation (v) of the Income-tax Act, 1961 - Capital gains - Computation of - Notified Cost Inflation Index for financial year 2009-10 - Amendment in Notification No. S.O. 2292(E), dated 9-9-2009

Notification No. 59/2010 [F.No.142/11/2010-TPL], dated 21-7-2010

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes number S.O. 2292(E), dated the 9th September, 2009, namely:-

In the said notification, in the Table, after serial number 29 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-



FOR FINANCIAL YEAR 2010-2011 is "711"

TDS Recovery of Employees who do not have PAN Numbers

An expert opinion by Dr. Vinod K. Singhania

Some of our employees may not have PANs, Under section 206AA. Tax is deductible at a minimum rate of 20 per cent as per their slabs. Know the quantum of TDS under section 192 in the following cases
1. In some cases, salary income is just Rs. 10,000 per month (Rs. 1,20,000 per annum). It is less than Rs. 1,60,000. Should we deduct tax at the rate of 20 per cent?
2. In some cases, salary is more than Rs. 1,60,000 but after deductions under Chapter VI-A, the resulting income is below Rs. 1,60,000. Is it necessary to deduct tax under section 206AA in such cases? In such cases, tax is deductible at the rate of 20 per cent or 20.6 per cent of the total payment or of taxable salary exceeding Rs. 1,60,000.
3. In the case of some foreign nationals working for our company (but not having PAN), salary income is more than Rs. 25,00,000 per annum. The normal tax rate is more than 20 per cent. Is it possible to deduct tax at the rate of 20 per cent or 20.6 per cent by applying the provisions of section 206AA.

Tax is deductible under section 192 as follows –
1.Find out estimated taxable salary.
2.Include other incomes disclosed by income. Losses cannot be disclosed except loss from house property.
3.Give deductions under Chapter VI-A.
4.Find out taxable income.
5.Find out normal tax (by applying slab rate of 0% up to Rs. 1,60,000, 10% between Rs. 1,60,000 and Rs. 5,00,000, 20% between Rs. 5,00,000 to Rs. 8,00,000 and 30% above Rs. 8,00,000). Add education cess at the rate of 3%.
6.Find out tax for the purpose of section 206AA at the rate of 20% of taxable salary (i.e., estimated taxable salary after deducting house property loss and
deductions under Chapter VI-A). There is no provision to add education cess in the ca
se of section 206AA.

If the employee has not intimated his PAN, tax deductible under section 192 will be either the amount computed under Step 5 or Step 6, whichever is more. This rule is applicable in all cases narrated by you in your query.

Specific questions raised in the query –

1.Even if, taxable salary income (i.e., after allowing deductions under Chapter VI-A) is lower than exemption limit, tax will be deductible at the rate of 20%, if the employee does not intimate his PAN. If an employee (not intimating PAN) gets Rs. 10,000 per month (suppose there is no deduction), his taxable salary income is Rs. 1,20,000 and tax deductible will be Rs. 24,000. It is incorrect to state that in such case taxable income is zero (as it is below the exemption limit) and tax should not be deducted under section 206AA.

2.As stated earlier, taxable income would be calculated after allowing deductions under Chapter VI-A. Even if such income is below Rs. 1,60,000, tax will be deducted at the rate of 20% under section 206AA if PAN is not intimated by the employee.

3.If normal rate is higher than 20%, tax will be deducted at the normal rate. For instance, if taxable salary income is Rs. 25,00,000, normal tax will be Rs. 6,22,120. Normal tax rate will be 24.88% (i.e., Rs. 6,22,120 ÷ Rs. 25,00,000). Tax will be deducted at the normal rate. In such a case, section 206AA will not have any role to play, even if recipient has not intimated his PAN to the payer.

Dr.Vinod.K.Singhania

The era of e-Returns.... More than 1 Crore Returns

The online filing of income tax returns could touch one crore-mark in the current financial year from 55 lakh in the last fiscal with the government making it mandatory for certain professionals and business entities as well apart from corporates.


The finance ministry said that professionals, including doctors, lawyers and chartered accountants, earning over Rs 10 lakh annually will be required to file income tax returns electronically.


Besides, all business entities and Hindu undivided families (HUFs) with a business income of over Rs 40 lakh per annum will also be required to mandatorily file income tax returns in the electronic format, the ministry said.


"With the addition of Hindu undivided families and individuals, the e-file returns are likely to touch one crore," an official with the Finance Ministry said.


Under the Income Tax Act, the individuals and HUFs are required to get their accounts audited if the turnover or gross receipts from business exceeds Rs 40 lakh (Rs 60 lakh from assessment year 2011-12) or receipts from the profession exceeds Rs 10 lakh (Rs 15 lakh from assessment year 2011-12).


"Now all individuals and the Hindu undivided families (HUFs), who are required to get their accounts audited...are also required to file their income tax returns electronically with or without digital signatures," the official said.


Earlier, this condition was applicable only to companies and partnership firms.


Further, the ministry made it mandatory for all companies to file income tax returns electronically with digital signatures, a move that will facilitate faster filing of I-T returns by India Inc.


The government had introduced the system for mandatory e-filing of income tax returns by corporates from assessment year 2006-07. The due date for submitting income tax returns for assessment year 2010-11 is July 31, 2010 for the clients who file without Tax Audits, and 30th September,2010 is for the clients with Tax Audit.

FREE Income-tax e-Filing Gateway - Skorydov Gift

Skorydov introduces FREE Income-tax e-Filing Gateway for Chartered Accountants, Tax Practitioners, TRP and Corporate clients.

Click here to login to myITreturn.com https://myitreturn.com/StartNow.aspx?Type=P
Select the Professional Login from the link below)

It is a tedious task to maintain username and passwords for all assessees. Using this service you can file XML files for all your clients / companies using a single login.

Try it. It is easy, fast and secure. The feature also validates your XML file and prompts for confirmation before e-filing.

A quick point that we would want you to know:
The ITR-V that you would get by filing from myITreturn.com can be obtained from any of the three ways mentioned below:

* The Income-tax Department website (PAN login at http://incometaxindaiefiling.gov.in) - immediately
* Email that is mentioned in your XML almost immediately.
* myITreturn.com login

So you do not have to worry!

Go ahead and try!

MY HEARTIEST CONGRATULATIONS AND THANKS FOR THE GIFT.

e-Filing ITR in audit cases u/s 44AB Mandatory.

e-Filing ITR in audit cases u/s 44AB Mandatory. Digital Signature is mandatory for Corporate Assessess.

CBDT has issued a notification 49/2010 vide which few changes has been made in the process of filing of Income tax return from Assessment year 2010-11. Now every person (including Individual and HUF) who is covered under section 44AB audit case is liable to file his return through e filing mode only .However in e filing, person can file return through digital signature or otherwise. However for companies, e filing of Income tax return is mandatory through digital signature only.

New rules is given here under for your ready reference

Income-tax (Seventh Amendment) Rules, 2010 – Amendment in rule 12

Notification No. 49/2010[F.No.142/15/2010-TPL], dated 9-7-2010


In exercise of the powers conferred by section 295 read with section 139 of 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 the Income-tax (7th Amendment) Rules, 2010.
(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules 1962, in rule 12, in sub-rule (3), in the proviso, for clause (a), the following clauses shall be substituted, namely :-

“(a) a firm required to furnish the return in Form ITR-5 and to whom provisions of section 44AB are applicable shall furnish the return in the manner specified in clause (ii) or clause (iii);

(aa) an individual or HUF required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable shall furnish the return for Assessment Year 2010-11 and subsequent Assessment Years in the manner specified in clause (ii) or clause (iii);

(ab) a company required to furnish the return in Form ITR-6 shall furnish the return for Assessment Year 2010-11 and subsequent Assessment Years in the manner specified in clause (ii)

NEW RUPEE SYMBOL FINALISED

AFTER A long period of time, the Union government of India approved the new Indian rupee symbol which is a mix of Devanagri ‘Ra’ and Roman symbol ‘R’. India rupee will be the fifth currency in the world to have a distinct identity. With its own distinct identity or symbol Indian rupee will join the elite club of US dollar, British pound-sterling, Euro and Japanese yen.

The symbol is designed by an IIT post-graduate student D Uday Kumar and later was approved by the Union Cabinet on Thursday (July 15, 2010).

A competition was organised for design of the currency symbol. There were more than 3000 entries of the designs among which Kumar's entry was chosen. Kumar will receive an award of Rs 2.5 lakh for his design.


Information and Broadcasting Minister Ambika Soni told reporters after the cabinet meeting that the symbol will be printed or embossed on currency notes or coins.

Soni also stated that the symbol will be featured on the computer key and software so that it can printed and displayed in electronic and print media.

The Information and Broadcasting Minister said that the symbol will be adopted within six months and gradually will be permanently seen globally within two years.

Check list for filing Income Tax Return Asst.Year 2010-11

While filingincome-tax returns, necessary precautions must be taken to avoid litigation at a later date. Filing income-tax return is a yearly ritual followed by all taxpayers. While filing the return, necessary precautions are to be taken to avoid confusion and litigation at a later date. Here are some key points to be taken into consideration for a hassle-free filing of tax return.

Traditionally filing of Income Tax Return is seen as a complicated and tiresome task, and therefore, most people keep putting it off till the last possible moment. But in the recent years, thanks to the initiatives taken by the government in simplifying the rules and the filing process, the task has become less daunting. With increasing prosperity and higher income levels, larger numbers of people have become eligible for filing Income Tax Returns.
What is Income Tax and who is liable to pay Income Tax?
Income tax is a tax paid to the central government on personal income. It is the direct tax paid on income by an individual or a company/firm within a given financial year (April-March). The Indian Income Tax department is governed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance, Government of India.

The Income Tax Act, 1961 as amended by Finance Act 2010, under Section 139 makes it obligatory upon any person to file return if the person's total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax.

Provided that a person referred to, who is not required to furnish a return under this sub-section and residing in such area as may be specified by notification in the Official Gazette, and who during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or at any time during the previous year fulfils any one of the following conditions, namely: is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified; or is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or has incurred expenditure for himself or any other person on travel to any foreign country; or is the holder of a credit card, not being an "add-on" card, issued by any bank or institution; or is a member of a club where entrance fee charged is twenty-five thousand rupees or more.
The tax liability to be computed for Assessment Year 2010 - 2011 is as per the under:-
(i) In case of individuals (other than women and individuals who are of the age of 65 years or more at any time during the financial year 2009-10)

Upto Rs. 1,60,000 : Nil
Between Rs. 1,60,001 - Rs. 3,00,000 : 10% of income in excess of Rs. 1,60,000
Between Rs. 3,00,001 - Rs. 5,00,000 : Rs. 14,000 + 20% of income in excess of Rs. 3,00,000
Above Rs.5,00,000 : Rs. 54,000 + 30% of income in excess of Rs. 5,00,000

(ii) In case of women (other than women who are of the age of 65 years or more at any time during the financial year 2009-10)

Upto Rs. 1,90,000 : Nil
Between Rs. 1,90,001 - Rs. 3,00,000 : 10% of income in excess of Rs. 1,90,000
Between Rs. 3,00,001 - Rs. 5,00,000 : Rs. 11,000 + 20% of income in excess of Rs. 3,00,000
Above Rs.5,00,000 : Rs. 51,000 + 30% of income in excess of Rs. 5,00,000
(iii) In case of individuals who are of the age of 65 years or more at any time during the financial year 2009-10
Upto Rs. 2,40,000 : Nil
Between Rs. 2,40,001 - Rs. 3,00,000 : 10% of income in excess of Rs. 2,40,000
Between Rs. 3,00,001 - Rs. 5,00,000 : Rs. 6,000 + 20% of income in excess of Rs. 3,00,000
Above Rs.5,00,000 : Rs. 46,000 + 30% of income in excess of Rs. 5,00,000.

It is mandatory to file a return, irrespective of the fact that tax has been deducted at source by your employer or not, and whether you are eligible for a refund or not.

Availability of details:

The taxpayer must keep all the details required for filing the return with him before resorting to actual filing work. Though the tax returns are annexure-less, keeping all the details in hand and filling-in the tax return form meticulously could make return filing a simple single stroke work.
By registering with www.incometaxindiaefiling.gov.in, taxpayers may also know the amount of tax deducted at source or collected at source standing to their credit and accordingly adjust the tax liability or make a claim for refund.

Quantum and eligibility for deduction under Sections 80C, 80D, 80DD, 80DDB, 80E, 80G, 80GGC and 80U in the light of any recent changes may also be kept in mind for utilising the correct deduction. A wrong claim might result in slapping of penalty and a non-claim could be set right only by filing revised return later.
Filing the return on or before the ‘due date' would mean no interest under Section 234A of the Act. Even if the assessment is made subsequently with upward revision of income, the levy of interest under Section 234A would not be possible if the return is filed on or before the due date.
E-based return:
Recent experiences in return filing has shown that e-filing of tax returns has been efficient, effective and trouble-free for taxpayers.
Though intimation in respect of those returns have been trickling in only over the last few weeks, the experience shows that e-filing is worth the waiting time for getting response in the form of intimation under Section 143(1) of the Act. A first hand experience of obtaining refund for e-returns might also motivate many more taxpayers to opt for e-filing of returns.
AIR data:
For filing the tax return, relevant and accurate data is to be keyed in. The taxpayers must also remember that high value transactions are liable for disclosure by various authorities under ‘Annual Information Report' (AIR).

It is necessary to fill in the relevant columns of the tax return correctly. In the event of mismatch between the return filed and AIR, the case might be selected for scrutiny under computer aided scrutiny system adopted by the tax department.
Scope for revision:
July 31 is the ‘due date' for filing returns by all taxpayers except those whose accounts are liable for audit under the income-tax law or any other law. Filing return before the ‘due date' entitles the taxpayer to file a revised return in the event of any error or omission therein. Whereas a return filed beyond the ‘due date' is not eligible for such revision.

Supporting Documents:
Supporting documents that you require to calculate tax liability while preparing IT Returns are:
Form No. 16 (received from the employer): Form 16 is the Annual Salary Statement issued by your employer and provides details about the income earned and tax deducted during the year.

Form No. 16A (received from all the payers who have got their tax deducted): This form needs to be collected from the parties who have deducted the tax while making payment to you during the year. This includes banks and companies (with whom you have kept fixed deposits and so on).
Form No. 26AS
The Income Tax Department through the National Securities Depository Limited (NSDL) sends taxpayers a document called the 'Annual Tax Statement' or Form 26AS. This statement gives information about tax deducted and collected at source by entities such as employers and banks for your permanent account number (PAN) in a certain year. It also lists information about advance tax/self assessment tax/regular assessment tax deposited by you in the bank. You may view the status of tax credit online by registering at the NSDL website

Summary of account: It is important to have a summary of all bank accounts that you operated in the last fiscal year. The bank statements have details of the interest income earned and the expenditures incurred during the year.

Details of property owned: If you own some property or bought a new one during the last fiscal year, keep receipts of property tax paid during the year and rent received (if any).
Details of sale & purchase with respect to investments or assets sold during the year.
Details of any other tax payments made during the year.It is also mandatory to quote the Permanent Account Number (PAN) while filing the return.
Manual Filing
In case you prefer to file your return manually, you would need to take the following steps:-
Download and complete the appropriate ITR form.

File the return with the concerned ward in the Income Tax Department of your jurisdiction.

Obtain receipt for your return
There is no need to attach any supporting documents with your return. However, you must have these available in case called for.
E-Filing
There was a time when people had to travel miles and wait in long queues outside the Tax Department to file their Income Tax returns. But a few years ago, the Income Tax Department introduced a convenient way to file these returns online. The process of electronically filing your Income Tax Returns through the Internet is known as e-filing of returns . It offers convenience of time and place to tax payers and is available round the clock to taxpayers located in any place in the world.

Electronic filing, or e-filing, of tax returns first began in India as part of a proposal for Internet-based electronic tax administration system for service tax. The Central Board of Excise and Customs's efforts made the introduction of e-filing of tax returns possible for the first time in India in April 2003, but its benefit was available only to a few service tax providers.
Considering the comfort for taxpayers across the country and also technology lending a helping hand, both the Central and State governments decided to extend e-filing of tax returns to the other types of taxes, including Income Tax, Excise and VAT.
Under the Income Tax law, this facility was introduced by the Central Board of Direct Taxes (CBDT) for the first time during assessment year 2006-07, wherein corporate assessees had to mandatorily e-file their income-tax returns.
At present, it is mandatory for companies and firms requiring statutory audit under Section 44AB to e-file their Income Tax Returns. Also, the e-filing benefit has been extended to all assesses except for trusts.
Steps for E-filing
Login to the official website for Income Tax e-filing
Read the instructions given on the website
Select and download the appropriate Income Tax Return form
Download Return Preparation Software for selected Return Form.
Fill your return offline and generate XML file.
Register and create a user id/password.
Login and click on relevant form on left panel and select "Submit Return".
Browse to select XML file and click on "Upload" button.
3 ways to file returns electronically
Option 1: Use digital signature , in which case no further action is required.

Option 2: File without digital signature, in which case ITR-V form is to be filed with the department. This is a single page receipt-cum-verification form.
Option 3: File through an e-return intermediary who would do eFiling and also assist the assessee file the ITR -V Form
.
On successful upload acknowledgement details would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form

In case the return is digitally signed, on generation of "Acknowledgement " the Return Filing process gets completed. Assessee may take a printout of the Acknowledgement for his record. All corporate returns have to be digitally signed by director.

In case the return is not digitally signed, on successful uploading of e-
Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be submitted with the local Income Tax Office within 120 days of filing electronically. This completes the Return filing process for non-digitally signed Returns.

Happy News

Respected Ladies and gentlemen,

I wish to bring to your kind notice that Iam starting a New Blog on "Indian Income Tax Act".

Trust, you will definitely enjoy with my updates.

regards

Venkatappaiah Tekumalla