From The Desk of CA SANDHYA JAIN

This is December with cold days and chilled nights this month also has few important dates like “X-mas” i.e. 25 th December it also ends with 31 st and next morning we all are welcoming the 1 st January aka  “New Year” these all put us in happy and joyous mood but this particular month is also have an important date “this is the due date of advance payment of Income tax which is 15 th of December” But 15 th December 2013 is on Sunday and considering this fact and practical problems of assessee the CBDT has issued an order under sec.119 (ia) of the Income Tax Act, 1961 dated 13.12.2013 . The CBDT has issued an Order dated 13.12.2013 under section 119(2)(ia) of the Income-tax Act, 1961 extending the last date of payment of the December Quarter Installment of Advance Tax for the financial year 2013-14 from 15th December 2013 to 17th December 2013 for all the assessees, Corporate and other than Corporates. Extened due date-Advance Tax

CBDT has vide its order dated 26.09.2013 has extended the due date for e-filing of Tax Audit Report to 31.10.2013. The order has nowhere mentioned about the due date for e-filing of Income tax Return. It seems due date for filing of ITR are been kept same i.e.30 th September 2013. If Assessee does not file the ITR on or before 30 th September 2013 he may have the following implications:- 1.       Levy of Penal Interest U/s. 234A on outstanding taxes. 2.       Losses if any may not be allowed to be carried forward. 3.       Assessee also has to Pay Statutory dues U/s. 43B on or before the filing of ITR or Due Date i.e. 30.09.2013 whichever is earlier. 4.       Assessee may be penalizing @0.5% of GT or Maximum of Rs.1, 50,000/- assuming he fails to get accounts audited. The above discussion ...

CBDT has vide its order dated 26.09.2013 has extended the due date for e-filing of Tax Audit Report to 31.10.2013. The order has nowhere mentioned about the due date for e-filing of Income tax Return. It seems due date for filing of ITR are been kept same. In Real sense there is no extension.  Notification/ Order Dated 26.09.2013 is as follows:- F.No. 225/117/2013/ITA.II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Dated- 26th September, 2013 Order under Section 119 of the Income-tax Act. 1961. CBDT in exercise of power under sec 119(2)(a) of the IT Act, 1961 read with Sec 139 and Rule 12, has decided to relax the requirement of furnishing the Report of Audit electronically as prescribed under the proviso to sub-rule (2) of Rule 12 of the IT Rules for the Assessment Year 2013-14 as under (a) The assesses, who are presently finding it difficult to up...

Income Tax Department has given one more chance to all those assessee’s who filed ITR electronically but had not send the ITR-V to CPC Bangalore by issuing a notification dated 12 th September 2013 for the receipt of ITR-V. Notification for Extension of date for receipt of ITR-Vs in CPC. Bengaluru, for the cases of AY 2012-13 and 2O11-12 received in e-filed in FY 2O12-13. There are many taxpayers who have uploaded their Income Tax Returns electronically (without digital signature Certificate) for A.Y. 2O11-12 [filed during F.Y. 2O12-13 and for ITRs of A.Y. 2O12-13 [filed on or after 1.4.2012], but have either not filed the corresponding ITR-V or have filed it with the local Income-tax office. ITR-V is accepted only at the Centralized Processing Center (CPC) of the Income-tax Department at Bengaluru by ordinary or speed post. Therefore, a final opportunity is being given to such tax payers to regularize their Income-tax returns. All such taxpayers may mail the ITR-V, ...

What is the Fiscal Deficit? The fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowing).  Or we can say that if Total Expenditure >Total receipt i.e. Fiscal Deficit = Total Expenditure- Total Receipt It indicates government’s borrowing requirements from all sources to finance its expenditure. Fiscal deficit is expressed as a percent of GDP which indicates capacity of a country to borrow in relation to what it produces. High % to GDP means government is borrowing beyond its capacity in relation to what its producing which is its income. The elements of the fiscal deficit are ·         The revenue deficit, which is the difference between the government’s current (or revenue) expenditure and total current receipts (that is, excluding borrowing) and ·         Capital expenditure. The fiscal deficit can be financed b...

Ek ghar ho sapno ka, Ghar ek mandir, we have seen these sort of connotations used by various builders while promoting their ventures. As an ordinary man buying a property requires huge initial outlay and that will be bifurcated as actual amount paid, stamp duty, registration fee etc. Assessee always want to get maximum tax benefit, so in this article we will discuss the expenses paid on property, where are the areas they can be claimed and in what manner. Chapter VIA- Deductions in respect of certain payments states u/s 80c (1) “ In computing the total income of assess being an individual or a HUF, there shall be deducted, in accordance with deposited in the previous year, being the aggregate of the sums referred to in subsection (2) as does not exceed one lakh rupees (2)The sum referred to in sub section (1) shall be any sum paid or deposited in the previous year by assessee-“ (i)-(xvii)……………. (xviii) for the purposes of purchase or construction of residential house p...

On 19th of August 2013 CBDT issued a circular stating that certain income of a specified assessee is exempt u/s 10(48) of Income Tax Act, 1961. So to understand this notification first we should have knowledge that “what is the Sec. 10(48)” and what it exactly speaks . As we, all are aware that sec 10 of the income tax is specifically devoted for exemptions and furthermore clause 48 too is the part of the same pool. Section 10(48) states that any income received by a foreign company from sale of crude oil in India is exempt provided that such company is not engaged in any other activity in India. Under this notification, the receipt of Income of the National Iranian Oil Company is exempt u/s 10(48) from the sale of Crude Oil to India .  This Notification comes into effect from January 20 th  2013 i.e. retrospectively. Text of Sec 10(48) of Income Tax Act, 1961  In computing the total income of a previous year of any person, any income falling under thi...

The CBDT has issued Instruction No. 10 of 2013 dated 05.08.2013 announcing the procedure and criteria for selection of scrutiny cases under the compulsory manual for FY 2013-14 INSTRUCTION NO 10/2013, F.No.225/107/2013/ITA.II Dated: August 5, 2013 Procedure and criteria for selection of scrutiny cases under compulsory manual during the financial-year 2013-2014-regd .In supersession of earlier instructions on the above subject, the Board hereby lays down the following procedure and criteria for manual selection of returns/cases for scrutiny during the financial-year 2013-2014 2. The targets for completion of scrutiny assessments and strategy of framing quality assessments as contained in Central Action plan document for Financial Year 2013-2014 has to be complied with. It is being reiterated that all scrutiny assessments including the cases selected under manual criteria will be completed through AST system software only. 3. The following categories of cases / returns ...

In the month of august 2013, the parliamentary standing committee on finance released its report on the 115th Constitutional Amendment Bill, which had been referred to it by the government in 2011. This Bill lays out the framework and the implementation plan for a national goods and services tax (GST), which many observers have said will be a fiscal game-changer. It will, on the one hand, streamline the entire indirect tax system by eliminating interstate differentials in tax rates, subsuming a large number of local taxes into an aggregate levy, which, once paid, can be claimed as credit against subsequent tax payments anywhere in the country. On the other, it will incentive countless producers to enroll themselves into the tax system, because not to do so would now reduce their competitive edge. This will significantly raise the tax-to-GDP ratio. With both production efficiency and tax revenue benefits, one might wonder why the system is taking so long to introduce the new mechanism....

1.       TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. 2.       All those persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates. 3.       The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. It is mandatory to quote TAN in all TDS/TCS return as well as TDS/TCS certificates and payments challan. 4.       TDS/TCS returns will not be received if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. ...

Type of Lease   How many types of lease are you aware? Did you know that how many types of leases are exist in financial world, you will say that Operating and finance lease. Here I will discuss few of them. But first of all we have to understand what is Lease What is Lease Lease is a legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor must uphold the terms of the contract for the lease to remain valid. Or in other words Leases are the contracts that lay out the details of rental agreements b/w the lessor and lessee for the use of specified asset for the specified time. For example, if you want to rent an apartment, the lease will describe how much the monthly rent is, when it is due, what will happe...

TAN is a allotted to persons who are deducting or collecting tax at source on behalf of the Income Tax Department where as PAN is allotted to assessees like individuals, companies etc for filling their Income Tax Returns and to Pay own taxes.

It is human nature to jump at and exploit to the fullest extent, everything that is new to our world. It happened with petroleum; it happened with Sachin Tendulkar; it also started happening with the Transfer Pricing provisions. After the introduction of the Transfer Pricing Regulations vide the Finance Act, 2001, the number of audits started increasing, along with the number of the pending cases. To curb the same, section 92CB was introduced vide Finance Act, 2009, which provided that the determination of arm’s length price under section 92A/92C shall be subject to certain “Safe Harbour Rules”. The intent was clear – do NOT scrutinize every single assessee who enters into a transaction with its international associate. “Safe Harbour” was defined to mean those transactions for which the Revenue would accept the transfer price declared by the assessee. Vide the aforesaid amendment in 2009, the Government also empowered the CBDT to make the said “Safe Harbour Rules”. However, after m...