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HRA EXEMPTION HOW TO CALCULATE 2008-03-06 07:38:35 In most of the cases ,House Rent Allowance(HRA) is part of salary package .so exemption of Hra how to calculated is most of us is want to know infact most of person already know about HRA exemption,I am giving this to shares my understanding on the above issue which may be useful for many of this site visitors.if you have any different views or any point left in this post ,please record in the comment section.calculation of HRA exemption.least of following three will be exemptedHra received50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case.rent paid in excess of 10 % of salaryother points to be notedSalary for this purpose meanBasic salaryDearness Allowance if terms of employme
Deduction for Higher Education Loan 80E on son's eduction. 2008-03-04 13:07:07 In This post we will discuss issue relating to deduction u/s 80E for eduction loan for higher studies.We will try to cover all point relating to eduction loan ,but if any left or you have a diffrent opinion than us ,you can record it in comment section given below.relevant clause of section are reproduced hereunder for ready reference :80E. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher education of his relat Read more:Deduction
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TAX CALCULATOR -WITH REVISED RATES IN BUDGET 2008-03-03 21:27:39 In Budget 2008 personal income tax rates has been slashed by the Finance Minister and all Individual and Huf will gain from 4120 to 49852 (including surcharge)in relation to their income.We have Created a small calculator in which u calculate tax for individual as general,huf,Senior citizen,Women.In this calculator u will also know how much benefit u will get from budget.new Rates of Income tax for Previous Year 2008-09 is given hereunder.For the AY 2008-09 (FY 2007-08) for an individual, HUF (other than woman or senior citizen)Upto Rs. 110,000NilRs. 110,001 to Rs. 150,00010% of income above Rs. 110,000Rs. 150,001 to Rs. 250,000Rs. 4,000 plus 20% of income above Rs. 150,000Above Rs. 250,000Rs. 25,000 plus 30% of income above Rs. 250,000For women, the minimum limit of Rs. 110,000 is to be
SERVICE TAX CHANGES IN BUDGET 2008 2008-03-03 10:04:57 We try to cover major changes in service tax in Budget Presented on by Finance Minister on 29/2/2008.There is no change in service tax rate and it remains 12% plus education cess 2% and Higher Secondary Cess 1% .Important changes in service tax are given hereunder.Service tax Good NewsThe annual threshold limit of service tax exemption for small service providers has been increased from the present level of Rs.8 lakh to Rs.10 lakh with effect from 01.04.2008, provided that the aggregate value of taxable services rendered by such provider of taxable service from one or more premises, does not exceed Rs.10 lakh in the preceding financial year.(Notification No.08/2008-Service Tax).The above limit for service provider wise not for each service.Suppose If a person pr
DIRECT TAX CHANGES IN BUDGET AT A GLANCE 2008-03-02 03:59:44 In this post we will cover some important clauses of direct tax that has been proposed to be changed by Finance Minister in Budget 08.We will try to explain the changes. Change in Income Tax rates(Covered in separate Post)TAX CALCULATOR -WITH REVISED RATES IN BUDGETSenior Citizen Saving Scheme 2004 and the Post Office Time Deposit Account added to the basket of saving instruments under Section 80C of the Income Tax Act.This Benefit will be available from current year i.e investment made in f.y 2007-08 also eligible u/s 80c, and notification has already issued in this regard .Additional deduction of Rs. 15,000 allowed under Section 80D to an individual paying medical insurance premium of his/her parent or parents.whe
BUDGET CHANGES -MISSED BY U -40A(3) CASH PAYMENT EXCEEDING 20000 RS. 2008-03-02 03:35:58 MEASURES TO PLUG REVENUE LEAKAGESAmendment to the provisions of section 40A(3) of the Income-tax Act,Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction.Section 40A(3)(b) also provides for deeming a payment as profits and gains of business or profession if the expenditure is incurred in a particular year but the payment is made in any subsequent year in a sum exceeding Rs. 20,000/- otherwise than by an account payee cheque or by an account payee bank draft.The provisions of this section are subject to exceptions as provided in Rule 6DD of the Income-tax Rules, 1962
HOUSE LOAN BENEFIT AND SECTION 80C 2008-02-27 10:52:06 All most 25 % queries online are regarding housing loan benefits under income tax act and second after Queries Relating to Pan Allotment. In this post we will discuss only points relating to benefit of house loan under section 80C.we have tried to cover all the important issues but if any left or you have different thoughts than ours please record in comments section.Deduction for house loan /installment available up to Rs.100000 /-The limit of one lac as above is total limit u/s 80C for all type of savings ,plus section 80CCC(pension policy) plus u/s 80CCD(Contributory Pension Plan).Means the aggregate amount of deduction under above referred sections can not exceed Rs. 1,00,000.The payment of loan should be made towards cost of purchase/construction of new residential house property.The
Saving under 80c whose name can be done 2008-02-26 21:32:57 In this post we will discuss only points relating to benefit of under section 80C.we have tried to cover all the important issues but if any left or you have different thoughts than ours please record in comments section.The list given below is not complete and we have covered schemes only that widely used by the persons.And we will try to cover each scheme in detail in our other post.80c savingScheme particulars Available to Can be for amount cap Holding period Life Insurance premium huf Member of family 20% of Sum Assured Two year individual spouse,own,children (major or minor,dependent or indepdent) do Non -Commutable defrreed annuity individual spouse,own,children (major or minor,dependent or indepdent) Nil Nil Read more:Saving
TUITION FEES PAID FOR CHILDREN U/S 80C 2008-02-22 20:13:06 Today we will discuss important points regarding deduction available for payment of tuition fees .we try to cover each and every aspect on the issue ,if any left ,or you have different opinion than of us ,please record in comments.Relevant part of the section 80c is reproduced here under."(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,(a) to any university, college, school or other educational institution situated within India;(b) for the purpose of full-time education of any of the persons specified in sub-section (4) ""(4) The persons referred to in sub-section (2) shall be the following, namely: (a) ......................b) .......................c) for the purposes
Life Insurance premium paid on wife's Policy eligible for tax rebate? 2008-02-18 05:01:48 By Going through analysis of Incoming traffic to this site and online search given on our blog site I found that more of the visitors are looking for basic tax concepts so I have decided to give important and widely used section details on blog,though I know most of the email readers of BLOG are professional in accounts and tax and does not like concepts in feeds ,yet it is necessary to give detail of basic concepts also.Today I will discuss life Insurance premium.Important Point in this regards are given belowDeduction u/s 80c of income tax is available to Individual and Huf Assessee.Maximum total eligible
amount under this head (LIFE insurance Premium) is Rs. 1.,00,000 /-The limit of one lac as above is total limit u/s 80C for all type of savings ,plus section 80CCC(pension policy) p Read more:Policy
MANDATORY PAN % INCREASED IN ETDS ETCS RETURN. 2008-02-12 12:52:34 Press release from CBDTThe CBDT through a press notification Issued on 12.02.2008 has increased the mandatory Pan % (Earlier issued on 25/09/2007)in e-tds and e-tcs return o and from quarter ending 31.03.08 and no return will be accepted if mandatory pan has not been filled on or after 01.04.2008.New % will as under.For form 24q (etds return for salary mandatory pan limit will be 95% increased from 90%For Form 26q and form 27eq(e-TCS) mandatory pan limit will be 85% increased from 70% earlier.This new % will be applicable from 01.04.2008 on each & every return filed on or after 01.04.2008 though related to a period earlier than quarter ending 31.03.2008This is surprise to me and you because on 04/02/2008 in a earlier press release CBDT has increased the due date of filing etds/etcs ret
HOW COULD I GET NEW PAN CARD/CORRECTION IN PAN CARD 2008-02-12 09:40:24 Last month I have started free pan verification services ,since then I have received so many queries regarding pan though I have replied each & every quires separately but I know generally people hesitate to ask questions so I think its beneficial to discuss main and common question regarding pan on our blog.Ques: I have applied for pan some time back but has not received the pan card ,how can i get new pan card?I have duplicate/multiple pan ,how can I surrender one of them.How can I apply for change in correction in pan address ,and is it necessary/mandatory to apply for change in address.I would like to know whether there are any persons/agencies that can help people like me to get pan no in quick time. Ans.1First of all I would like to inform every body that if you need Pan for in
FILL SERVICE TAX CODE IN GAR-7 /TR6 OTHERWISE CHALLAN WILL NOT BE ACCEPTED. 2008-02-10 08:54:13 Last week my friend Vishal pasad at Mumbai went to Axis Bank Branch to deposit service tax on gar-7 challan ,but he was surprised to know that he can not deposit the tax as the service tax code he has filled on the challan ,is not shown in NSDL website ,thanks to delay in updatation of by the authorities and a new circular/Instruction by RBI issued to banks regarding receipt service tax/excise payment.Vishal also has Service Tax registration certificate and after showing it to Bank staff he deposited the tax next day.Then he suggested me to give about this on blog to inform all tax payers like you so that you will not face the same situation as he(Vishal) has faced.So I briefly discussed the circular hereunder. Main points are:--Banks are advised that no payment of Central Excise &
HOW TO FILL TDS CHALLAN ITNS 281 2008-02-06 05:57:50 I have tried to explain "how to fill challan 281" in the picture given below.The main Point which should be kept in mind ,while filling the challan form,are given below.Download above image for how to fill form 281Deposit tax deducted from company and non company deductees in separate Challan. Suppose u have deducted tax from abc ltd and ram & com (partnership firm) u/s 194c than separate challan should be deposited .For company deductees select code 0020 and for non company deductees.To segregate company and non company deductees ,use pan forth letter,if forth letter is "C" then it means company deductee in other cases non company deductee.Do not deposit tax deducted under different clauses/sections of income tax in single challan .Fill separate challan .like you should not deposi
DUE DATE OF TDS/TCS RETURN QTR ENDING 30.09.2007 EXTENDED. 2008-02-01 10:50:48 CBDT has extended the due date to file the Etds and Etcs return for the quarter ending 30.09.2007,2nd quarter for the f.y 2007-08 to 29.02.2008.In my view date has been extended by keeping in view the practical difficulties faced by the tax payers to fill mandatory 90% pan in salary return (24Q) and 70% pan in other returns.But some times assessee(deductee) has not applied for the pan card ,so due to the negligence of deductee ,deductor can not file his etds return, as pan of deductee is must up to certain percentage as mentioned above mandatory & without which return will not be accepted and deductor may also be asked to DEPOSIT the penalty.But thanks to CBDT ,who has now extend due date to file the second qtr etds/etcs return date to 29.02.08 and there will be no penalty upto the da
FAQ ON FBT ON ESOP 2008-01-31 12:56:33 The Central Board Of Direct Taxes has released a circular Circular No 9/2007 dated 20/9/2007 which contains 25 frequently asked questions on ESOP. The excerpt of the circular is given below for the benefit of readers Frequently Asked Questions A number of issues have been raised by trade and industry at different fora after the presentation of the Finance Bill, 2007, after its enactment and also after the notification of Rule 40C. The questions and answers in the following section seek to clarify these issues: 1. Whether a foreign company is liable to pay FBT on shares allotted or transferred to the employees of its Indian subsidiary? Answer In terms of the provisions of Chapter XII-H of the Act, an employer, being a company, is liable to pay FBT in respect of the fringe benef
E-PAYMENT OF TAXES MANDATORY FROM 1.04.08 2008-01-24 19:09:59 As I have earlier written that e-payment will be made mandatory from April 1,2008,finally a press release has been issued by the CBDT, given hereunder. Two type of person now has to make payment of taxes through internet.1.All Corporates.2.person other than corporate but covered under section 44ab(compulsory Tax audit)No minimum limit has been suggested in press release which i think is not correct and unjustified for small & medium business.In my view at least 100000 tax limit should be there,means the person who's tax payment is less than 100000 in a year can be pay taxes either online or of line .please comment.but there is no such limit given in press release.Please give ur comment on the issue.press release is given hereunder for ready reference.Moreover it has been also clarified
TDS ON COLD STORAGE RENT-194C OR 194 I ? 2008-01-20 03:41:57 Clarification regarding applicability of provisions of Section 194-I to payments made by the customers on account of cooling charges to the cold storage ownersCIRCULAR NO. 1/2008, DATED 10-1-2008Representations have been received from various quarters regarding applicability of the provisions of Section 194-I to cooling charges paid by the various customers to the owners of cold storages. It has been represented that the cold storage owners provide a composite service, which involves preservation of essential food items including perishable goods at various temperatures suitable for specific food items for required periods and storage of goods being incidental to the activity of preservation. The cooling of goods is controlled through mechanical process. The customer brings its packages
KNOW YOUR PAN AO CODE 2008-01-19 00:32:38 It is mandatory for the applicants to mention the AO code in the PAN application. The AO code under jurisdiction of which the applicant falls, should be selected by the applicant. The applicants are advised to be careful in selection of the AO code. The details given here are as per the information received from the Income Tax Department. For additional information applicants may contact local office of Income Tax Department or call Aaykar Sampark Kendra on 0124-2438000. (a) PAN AO Codes - International Taxation (b) PAN AO Codes - Non International Taxation and other than Mumbai region (c) PAN AO Codes - Mumbai region (d) PAN AO Codes- Defence personnelother useful linksDOWNLOAD PAN APPLICATION FORM 49 A IN EXCELDOWNLOAD PAN APPLICATION FORM 49 A IN PDFDOWNLOAD Request FORM for Ne
TDS UNDER PUNJAB VAT ACT ON WORKS CONTRACT INCREASED TO 4 PERCENT 2008-01-12 23:30:13 The Punjab government has doubled the rate of Tax Deducted at Source (TDS) for building contractors to four per cent from January 9 this year to boost state revenues and stimulate growth in the local industry."Now all the contractees, whether it is private or government organization will be required to deduct TDS at a rate of 4 per cent, under the Punjab Value Added Tax, 2005, from amount payable to a contractor," Punjab Excise and Taxation Department Commissioner A Venu Prasad said on Friday.The increase in TDS rate would add Rs 5-10 crore to the government's kitty per annum.He said it would be mandatory for all organisations to deduct TDS from the amount paid to contractors.Prasad said although contractors would have to pay higher TDS, the decision would benefit them if they start procur
SERVICE TAX CLARIFICATION :INPUT SERVICE ,IMMOVABLE PROPERTY ,SERVICE TAX ON RENT 2008-01-08 08:55:43 CBEC Has earlier two important/master circulars First regarding service tax procedure i.e 97 dated 27.8.07 and second 96 dated 27.8.2007 regarding scope of services and some clarification on application of service tax on some services now new clarification has been issued on wide circular 98 dated 04/01/2008 regarding CENVAT credit of input services used in construction of immovable property can be taken while discharging service tax on rent of of immovable property is reproduced hereunder.096.01 / 04.01.08"Question: Commercial or industrial construction service [section 65(105)(zzq)] or works contract service [section 65(105)(zzzza)] is used for construction of an immovable property. Renting of an immovable property is leviable to service tax [section 65(105)(zzzz)]. Wheth
UP VAT AT A GLANCE PPT HIGHLIGHTS 2008-01-07 21:23:05 (Click here to download the presentation) About the Author: - Bimal Jain, FCA BimalJain@lgindia.com Asst. General Manager -Corporate Commercial Dated: - January 8, 2008SOURCE:TMIRELATED LINKSBARE ACT VAT,VAT FORMS,RULES ALL INDIA STATE WISEKNOW DEALERS DETAIL BY TIN (VAT) NUMBER OR BY NAMEDownload Our Free Toolbar
CLARIFICATION SERVICE TAX ON WORK CONTRACT COMPOSITE SCHEME 2008-01-04 19:48:54 CBEC Has earlier two important/master circulars First regarding service tax procedure i.e 97 dated 27.8.07 and second 96 dated 27.8.2007 regarding scope of services and some clarification on application of service tax on some services now new clarification has been issued on wide circular 98 dated 04/01/2008 regarding application of composite payment of service tax on work contract.the clarification is reproduced here under." 097.03 / 04.01.08"ques: Services provided in relation to execution of works contract is leviable to service tax w.e.f. 01.06.07 [section 65(105)(zzzza)].Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 provides option to pay service tax @ 2% of the gross amount charged for the works contract. However, the service provider o
HAPPY NEW YEAR 2007-12-29 10:48:58 Send this eCard !I Wish to god that this year will bring more health & wealth for all of you .HAPPY NEW YEAR 2008 GOD HAS ACCEPTED MY WISHNOW 2008 will provide you more free time..............because ...........GIVE UR COMMENTDownload Our Free Toolbar
FREE ETDS RETURN PREPRATION 2008-03-15 02:31:14 From 1.10.2007 most of the assessee/deductor has been covered under etds returns and there is no minimum limit for entries fixed for which etds return is to be submitted .some firms who has single or two entries total has to purchase software to prepare etds return and take help from professionals .Both time and money has to be spent.so to help tax payer community we have started a service FREE etds return form 26Q for small businessmen and professional who has up to 10 challan in quarter and up to 10 number of tax deduction entries.Main features of our service.It will be available for form 26q only.(non salary etds return)Return will be prepared by us from data ,submitted by you/viewer.Service will be fully free.Viewer should have installed Microsoft excelData should be submitted only
EMPLOYEE WORKING PART OF THE YEAR ETDS RETURN AND FORM 16 2008-03-16 22:01:48 Dear friends ,as the year end is coming closer ,workload is increased due to various return to be filed and finalisation of accounts and one of the work is filing of Etds returns for salary form 24q .In last quarter a one additional annexure i.e annexure II is to be filled in addition to regular quarterly return.My Dear Friend Rajiv Jain has discussed some of the problem relating to last quarter salary return (ETDS q4) and I have tried to resolve that problems to best of my knowledge and I thing you may have also facing problem like that so I am giving the ques and answer for all of you.ques:A person has worked under four employer in a financial year. 1)tds 1000 has deduction under 1st employer. 2) tds 2000 deducted in 2nd employer. 3 tds 3000 deducted under 3rd employer. 4) now i
HOW TO EARN ONLINE BY PAY PER POST 2008-03-16 11:28:05 Dear friendsI have start this blog just as to share knowledge and for a time pass 8 months back.That time I have not thought that through blogging One can also earn money.but by a passage of time I know various sources of earning money and tried them and now I am earning handsome money and today in this post I will discuss a new source of earning,which I found through Google search i.e Pay Per Post.How it worksWorking of pay per post is very simple ,first register your self then register your blog after registration copy a html code to your blog and wait for approvel for your blog. In order to start work with PPP your blog or site must qualify for the terms and conditions set by PPP.After approvel you can start earning money through pay per post (PPP).As the name suggest you will write
CORRECTION IN eTDS STATEMENT/RETURNS LESS DEDUCTION OF TAX. 2008-03-19 07:33:33 Dear Friends,etds are now a days mandatory for many persons/deductors ,but its a new to many & for me also ,there are few difficulties in prepration of etds returns but even difficulties we face ,it is more beneficial to us and a very good step towards e governance .Problem difficulties can be sought out with view sharing.We request all to share your view with each other.Each time we have a problem /difficulty in any work we should happy at that time because we know problem will be solved sooner or later and out knowledge will improve.Now come to the point a specific question has been put to me by Mr Rajiv jain again ,I found this question very interesting to me ,I am answering this question with the guidance of CA SHIV JINDAL (FCA) (Mobile:09417055937) Ques:A deductor has deduct
HRA AND HOUSE LOAN IN SAME CITY CAN BE CLAIMED. 2008-03-21 21:28:31 I have taken a House Loan for a new house which is far away ( around 16KM ) from my office.( My new house and office are in same city ).I am staying for rent near to my office.As of now my parents are staying at new house which was bought on House Loan.and I stay with my wife at the rented house.CAN I CLAIM BOTH HRA AND HOUSE LOAN FOR TAX BENEFITS ?Sharath Chandra Reddy As per income tax act both benefits are independent of each other and there is no relation what to so ever in claiming HRA exemption and House loan interest ,if person fulfill conditions to avail benefit given in ACT than he can claim ,and condition is be checked separately for each section.If law has not given any condition or linking in both the sections than why DDO are linking it ,I don't know.lets discuss
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