State Bank of India
07:11
Showing posts with label deduction of tax. Show all posts
Showing posts with label deduction of tax. Show all posts
Wednesday, 17 November 2021
Wednesday, 24 March 2021
INCOME TAX
06:47
Tax on Perquisite Value of Accommodation W.P.No.14126/2008 in the Matter of AIBOC Vs.Union of India and Others
Tax on Perquisite Value of Accommodation W.P.No.14126/2008 in the Matter of AIBOC Vs.Union of India and Others
Tuesday, 8 May 2018
Thursday, 8 February 2018
Monday, 1 May 2017
FATCA
17:53
Bank accounts to be blocked: Full impact of FATCA to be known on Tuesday
Bank accounts to be blocked: Full impact of FATCA to be known on Tuesday
This would only be after banks across the country commence functioning on May 2
The full impact of bank accounts getting blocked due to non-compliance with the Foreign Account Tax Compliance Act (FATCA) will be known on Tuesday or Wednesday, said a banker in a government-owned bank.
This would only be after banks across the country commence functioning on May 2 after the May Day holiday on Monday.
"Today (Monday) is a holiday in some states due to May Day and the headquarters of most of the banks are located in those states," he told IANS preferring anonymity.
According to him, whether the bank's software would automatically block a FATCA non-compliant account or it has to be done manually would be known on Tuesday.
Another banker with a government bank said the bank's software does not automatically block a non-compliant account. "We are waiting for instructions," he added.
The Central Board of Direct Taxes (CBDT), in a statement issued earlier, had said account holders of banks, mutual funds and National Pension Schemes (NPS) would have to be informed that their accounts would be blocked if self-certifications were not submitted by April 30, 2017.
In other words, a bank account holder or a mutual fund investor will not be able to operate their accounts like withdrawals, selling of units and the like.
What is FATCA?
"FATCA is a unique piece of legislation enacted in the US which requires financial institutions (FIs) to provide information about account holders who are US persons to the Internal Revenue Service (IRS)."
"Non-compliant FIs are liable to a punitive withholding tax of 30 per cent of their US sourced income," Rahul Jain, Partner, Nangia and Co, an international tax advisory and accounting firm, told IANS.
"The agreement is reciprocal in nature and allows for India to receive tax information in respect of its own residents," he said.
"The FATCA agreement will, therefore, allow for exchange of information between the two countries and will help considerably in detection of unaccounted money held by US persons in India and vice versa," he added.
Under Indian Income Tax rules, financial institutions have to obtain self-certification and carry out due diligence in respect of all individual and entity accounts opened between July 1, 2014, and August 31, 2015.
The last date for submission of self-certification ended on April 30, 2017.
Jain said the FATCA agreement can have serious implications for Non-Resident Indians (NRIs) who qualify to be US persons.
"Such NRIs need to be mindful that the accounts they hold in India with Indian FIs are duly reported in the US. The information concerning these accounts will now be shared with the IRS and any non-reporting may entail serious consequences for the NRIs under the US tax regulations," he added.
Indian resident taxpayers holding assets in the US will also be impacted.
The agreement with the US is reciprocal and will result in the US providing India with information regarding accounts or assets held by Indian persons in the US.
This information would provide more teeth to the Indian tax authorities in detecting assets held by Indian taxpayers in the US.
Together with the Black Money Law 2015, this could have serious ramifications for Indian residents who may not have reported such assets to the Indian tax authorities, Jain said.
According to Jain, any organisation or individual who has not been able to submit its or his FATCA self-declaration by the deadline of April 30 could make such declaration now and ask for his account with the Indian FI to be unblocked or de-frozen.
"While mutual funds have asked the investors to subject the self-certification form online, the problem may be for NPS account holders who have to go to the registrar office personally," Jayant Pai, Head-Marketing, PPFAS Mutual Fund, told IANS.
"We have reached out to our investors well in advance to be FATCA-compliant and there will not be much impact on our investors. On the other hand, banks and large mutual funds may face some problems going by the sheer size of their numbers," Pai added.
"Mutual Funds will continue to earn their fund management charges even if an account is blocked," he added.
Source:Business Standard
Thursday, 2 February 2017
TAXES
08:14
Strengthening of PAN quoting mechanism in the TCS regime
Strengthening of PAN quoting mechanism in the TCS regime
Statuary provisions for deduction of tax at source (TDS) at higher rate of 20% or the applicable rate whichever is higher) in case of non-quoting of Permanent Account Number (PAN) is provided under section 206AA of the Act and it exist since April, 2010.
PAN acts as a common thread for linking the information in the departmental data base. It may also be noted that the process of allotment of PAN is made simple and robust. PAN application can be made online and PAN gets allotted in less than a week.
In order to strengthen the PAN mechanism, it is proposed to insert new section 206CC to provide the following:
I. any person paying any sum or amount, on which tax is collectable at source under Chapter XVII BB (hereafter referred
to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (hereafter referred to as collector), failing which tax shall be collected at the twice the rate mentioned in the relevant section under Chapter XVII BB or at the rate of five per cent. whichever is higher.
II. that the declaration filed under sub section (1A) of section 206C shall not be valid unless the person filing the declarationfurnishes his Permanent Account Number in such declaration.
III. that in case any declaration becomes invalid under sub-section (2), the collector shall collect the tax at source in accordance with the provisions of sub-section (1).
IV. no certificate under sub section (9) of section 206C shall be granted unless it contains the Permanent Account Numberof the applicant.
V. the collector knows about the correct PAN of the collectee it is also proposed to provide for mandatory quoting of PAN of the collectee by both the collector and the collectee in all correspondence, bills and vouchers exchanged between them.
VI. that the collectee shall furnish his Permanent Account Number to the collector who shall indicate the same in all its correspondence, bills, vouchers and other documents which are sent to collectee.
VII. where the Permanent Account Number provided by the collectee is invalid or it does not belong to the collectee, then it shall be deemed that Permanent Account Number has not been furnished to the collector.
VIII. to exempt the non-resident who does not have permanent establishment in India from the provisions of this proposed section 206CC of the Act.
This amendment will take effect from 1st April, 2017.
[Clause 72]
Source:Indian Budget 2017
Monday, 24 October 2016
finance minister
23:15
SMS Alert:To Inform Central Government and Private Salaried Employees Tax Deduction
SMS Alert:To Inform Central Government and Private Salaried Employees Tax Deduction
FM: Better tax payer services key to direct tax reforms; Launches SMS Alert Service for about 2.5 crore private and Government salaried employees in order to directly inform them about the deposit of tax deducted at the end of every quarter.
The Union Finance Minister Shri Arun Jaitley said that better facilities and services to the taxpayers are the central to Direct Tax Reforms. He said that the tax payers have a right to know the deductions made from their salary/income on regular basis. He said that more and more tax payer services have to be provided in order to make the people tax complaint. He stressed on the Government’s commitment towards continuously upgrading tax payer services. The Finance Minister Shri Jaitley was speaking after launching the SMS Alert Service for direct taxes for about 2.5 crore private and Government salaried employees at a function in the national capital here today.
The new step is an effort by the Income Tax Department to directly communicate deposit of tax deducted, through SMS alerts to salaried taxpayers, at the end of every quarter. In case of a mismatch, they can contact their deductor for necessary correction. Simultaneously, SMS alerts will also be sent to deductors who have either failed to deposit taxes deducted or to e-file their TDS returns by the due date.
This initiative will initially benefit approximately 2.5 crore salaried cases. The CBDT will soon extend this facility to another 4.4 crore non-salaried taxpayers. The frequency of SMS alerts will be increased, once the process for filing TDS returns is streamlined to receive such information on a real-time basis.
All taxpayers who wish to receive such SMS alerts are advised to update their mobile numbers in their e-filing account.
The CBDT constantly endeavours to provide better taxpayer services and reduce taxpayer grievances. New schemes and e-initiatives to redress and reduce complaints of mismatches in tax deducted at source are key to this effort.
Source:PIBNEWS
Saturday, 12 March 2016
TAXES
08:30
Changes in TDS Provisions w.e.f 1st June 2016
Changes in TDS Provisions w.e.f 1st June 2016
1. Section 192(A) –Payment of an Accumulated Balance Due to an Employee from EPF. No Tax is required to be deducted in case amount does not increase Rs 50000. (Increased from 30000)
2. Section 194BB – Wining from Horse Race, Tax to be deducted at Source in case amount Increase Rs 10000. (Increased from Rs 5000)
3. Section 194C – Payments to Contractors-Tax in required to be deducted in case where aggregate of the amount paid or credited during the financial year exceeds Rs100,000( Increased from Rs 75000)
4. Section 194D -- Insurance Commissions. Here the Limit of Tax deduction has been reduced from Rs 20000 to RS 15000. Means Payment of any commission on Insurance will attract TDS in case Amount Exceeds Rs 15000.
5. Section 194DA – Payments In Respect of Life Insurance Policy- Payment of any sum under Life insurance policy including Bonus other than the amount not included in the total income under clause (10D0 of Section 10, Rate of TDS has been reduced to 1% from 2%
6. Section 194EE – Payments in Respect of Deposits under NSS. Rate of TDS has been reduced to 10% from 20%.
7. Section 194G – Commission on Sale of Lotteries- Limit has been increased from Rs 1000 to Rs 15000(Means No TDS on Payments up to Rs 15000). And Rate of TDS has also been reduced to 5% from 10%.
8. Section 194H – Payment of Commission and Brokerage- Rate of TDS has been reduced to 5% from 10% and under proviso – (Limit has been increased from Rs 5000 to Rs 15000(Means No TDS on Payments up to Rs 15000).
9. Section 194 K and 194 L omitted w.e.f 1st June 2016.
10. Section 194LA –Payment of Compensation on acquisition of Certain Immovable Property – Previously no TDS was required to be deducted in case amount Does not exceeds Rs 200,000. This limit has been increased to Rs 250,000.
11. Section 194LBB – Income In respect of Units of Investment Fund- Rate of TDS has been Changed from 10 % to following
1. At the Rate of 10% - In case of Resident payee
2. At the Rate in Force- In case on Non-Resident Payee(not Being a Company ) or a foreign company
12. Insertion of New Section 194LBC-
1. Where any income is payable to an investor, being a resident, in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon, at the rate of—
(i) 25%, if the payee is an individual or a Hindu undivided family;
(ii) 30%, if the payee is any other person.
2. Where any income is payable to an investor, being a non-resident (not being a company) or a foreign company, in respect of an investment in a securitisation trust specified in clause (d) of the
Explanation occurring after section 115TCA, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon , at the rates in force.
Explanation.—For the purposes of this section,—
(a) “Investor” shall have the meaning assigned to it in clause (a) of the Explanation occurring after section 115TCA;
(b) Where any income as aforesaid is credited to any account, whether called “suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be the credit of such income to the account of the payee, and the provisions of this section shall apply accordingly.’.
RBI maintained the accommodative stance of monetary policy in its credit policy review on 2 February 2016. However, it left all key rates unchanged in the credit policy review. The repo rate remains at 6.75% while the reverse repo rate is 5.75%.
Since its last policy-rate cut, some room for monetary easing has opened up as global growth weakened leading to a sharp decline in crude oil and commodity prices which supported lower inflation. But the RBI also wants to tame consumer price inflation (CPI) to 5% by March 2017 – or a clear percentage point lower than its March 2016 target. This will be a tough ask if the Seventh Pay Commission recommendations are implemented and the monsoon remains inadequate. A non-inflationary Budget will also be a factor in future rate cut decisions.
Our view:
We expect the RBI to slice the repo rate by 25 basis points after the Budget. The RBI policy stance remains accommodative, but before wielding the knife, it will wait for clarity on both fiscal policy and inflation.
For fiscal 2017, we expect CPI to stay soft at 5% Av -- unchanged from fiscal 2016 if India is blessed with a normal monsoon.
While the upward push to inflation from a low-base effect has played out, food price movement will be the key monitorable in the coming months. Given the excess capacity in industry, weak demand and soft commodity and oil prices, the impending Seventh Pay Commission payouts are unlikely to swing inflation away from the RBI’s glide path.
Policy transmission is an area of concern and lately tighter liquidity conditions have hindered further decline in market-driven interest rates.
The 10-year benchmark government security yield remains elevated reflecting hardly any impact of monetary easing. The yield at around 7.7% average in January 2016, remains unchanged from a year ago. Downward rigidity in bank base rates is the other big worry. We believe fiscal 2017 should see faster rate cut transmission as average borrowing cost of banks comes down and they begin to fix their lending rates based on marginal cost of funds.
Non-inflationary fiscal policy will be a key trigger for rate cut.
The Budget for fiscal 2017, to be revealed on February 29, will have to continue to support fiscal consolidation by controlling spending while keeping focus on structural reforms that boost growth in the medium term. These could include, among other things, policies that push agriculture production (and therefore lower food inflation) and those that improve ease of doing businesses and help attract foreign capital, in addition to encouraging domestic businesses to invest. Policies that push supply in services sectors such as education and health, where the inflation is high and stubborn, will also create grounds for a rate cut.
Divergent monetary policies across the world could trigger capital volatility.
But a low current account deficit and improving macroeconomic conditions are likely to attract higher inflows relative to last year.
Best regards,--
Contributed By CA. Mahendar Kumar Jain
Source:Important Banking News2
TAXES
08:25
Impact of Budget on Individual taxpayers
Impact of Budget on Individual taxpayers
Impact Of Budget On Individuals
The Finance Minister, Mr. Arun Jaitely on February 29, 2016 presented his 3rd Union Budget in the Parliament. Various changes have been proposed in the income-tax provisions which would impact the taxable income of an individual. The key direct tax proposals made for an Individual are as under:
1) Rate of surcharge shall be increased to 15% from 12%, if total income of an individual exceeds Rs. 1 crore.
2) Relief under Section 87A is proposed to be raised from Rs. 2,000 to Rs. 5,000 if total income of a resident individual does not exceed Rs. 5,00,000.
3) Dividend income is exempt under section 10(34). However, the Finance Bill proposes an additional tax at the rate of 10% on gross amount of dividend income received from domestic company,if it exceeds Rs. 10 lakhs per annum.
4) Additional deduction up to Rs. 50,000 is proposed under section 80EE in respect of interest on housing loan to the first time individual buyers of a residential houseproperty.
5) Maximum deduction under section 80GG for individuals paying house rent but not receiving HRA shall be increased from Rs 24,000 to Rs. 60,000 per annum.
6) Time-limit to acquire or construct house property to claim deduction of interest on housing loan under section 24(b) has been proposed to be increased from 3 years to 5 years.
7) A new Section 54EE is proposed to provide exemption up to Rs. 50 lakhs for long-term capital gains invested in units of funds set-up by Government to promote start-ups.
8) Filing of return is now mandatory, even if entire income is exempt from tax under Section 10(38). However, in such case total income should exceed maximum exemption limit without giving effect to the provisions of Section 10(38).
9) Currently, belated return can be filed at any time before the expiry of 1 year from the end ofthe relevant Assessment Year. Now, it is proposed that belated return cannot be filed after expiry of relevant Assessment Year.
10) The period for completion of assessment under Section 143 (Scrutiny Assessments) or Section 144 be changed from existing 24 months to 21 months from the end of the assessment year in which the income was first assess able.
Source:Important BankingNews2
Sunday, 21 February 2016
Reserve Bank of India
07:12
Reserve Bank of India says no to NBFCs for selling pension plans under NPS
Reserve Bank of India says no to NBFCs for selling pension plans under NPS
The Reserve Bank has rejected requests from non-banking finance companies (NBFCs) to become an agent to sell pension products of PFRDA.
The RBI had received proposals from the NBFCs, wherein they had sought approval from the regulator for undertaking Point of Presence (PoP) services under Pension Fund Regulatory and Development Authority (PFRDA) for National Pension System.
"The Bank (Reserve Bank) has carefully examined the proposals and it has been decided, in public interest that NBFCs shall not undertake PoP services for National Pension System (NPS)", RBI said in a notification today.
The PoP Service Providers (POPSP) are the first points of interaction of the NPS subscriber with its architecture.
They act as collection points and give a number of customer services to NPS subscribers including requests for withdrawal from the pension plans.
Individuals who are employed and contribute to NPS enjoy tax benefits on their own as well as their employers contribution
Saturday, 30 January 2016
TAXES
08:02
How to get more Deduction in Tax for the Financial Year 2015-16
How to get more Deduction in Tax for the Financial Year 2015-16
You will be eligible to claim some more tax deductions for financial year 2015-16. Here is a quick update of the revised limit under various Income Tax sections that you must remember to claim this year.
1. Deduction limit on your medical insurance premium paid for self, children and spouse under Section 80D of Income Tax Act has been increased to Rs 25,000 per annum from earlier Rs 15,000 per annum. One can also claim a deduction of up to Rs 30,000 for medical insurance premium paid for parents against Rs 20,000 earlier. In case of senior citizen, the limit has been revised to Rs 30,000 per annum from earlier limit of Rs 20,000.
2. This year, you can claim an additional deduction of Rs 50,000 towards contribution made to New Pension Scheme (NPS) under Section 80CCD (1B) of Income Tax Act. This is apart from Rs 1.5 lakh deduction available under Section 80C. Now, the combined deduction under Section 80C and 80CCD (1B) is Rs 2 lakh.
3. You can also claim a deduction of Rs 75,000 per annum under Section 80DD on the medical expenses incurred on a dependent relative with disability (more than 40 per cent but less than 80 per cent) this year against Rs 50,000 per annum till last year. In case of severe disability (more than 80 per cent), you can claim Rs 1.25 lakh per annum instead of Rs 1 lakh per annum earlier, irrespective of the amount you incurred during the financial year. While claiming the deductions you will have to furnish a certificate from medical authorities.
4. Also, the deduction limit under Section 80DDB for expenditure incurred on specific diseases such as Dementia, malignanat cancers, AIDS and chronic renal failure has been increased to Rs 80,000 per annum from Rs 60,000 per annum in case of very senior citizen. You can claim up to Rs 80,000 or the amount actually spent whichever is lower.
5. In case of a person with disability, the deduction limit under Section 80U has been increased to Rs 75,000 for this year against the earlier limit of Rs 50,000. In case of severe disability the limit has been increased to Rs 1.25 lakh from earlier limit of Rs 1 lakh. This is applicable where the tax payer himself suffers from a disability.
6. You can claim a deduction of up to Rs 1,600 per month towards transport allowance provided by your employer to you. Till last year the limit was Rs 800 per month. Also, if the person is blind or orthopedically handicapped with disability of lower extremities, he or she can claim a deduction of up to Rs 3,200 per month against earlier limit of 16,00 per month.
Source:BankingNews
Source:BankingNews
