Compliance Under Service Tax - 2012-13 - Bank Audit

The compliance under service tax provisions post Finance Bill 2012 may need clarity on 3 aspects which are discussed as under Small Service Provider Exemption The basic exemption is available to the CA whose taxable services in 2011-12 did [does] not exceed Rs.10 lakhs. Such CA would not be liable to service tax for services provided in 2012-13 upto a value of Rs. 10 Lakhs. Once the limit is exceeded then they would be liable for the incremental services beyond Rs. 10 Lakhs. Therefore if eligible for the exemption, no need to charge any service tax for the bank audit II. Date of Billing The Bank audit could have commenced in March 2012, however the completion of the services would be in April/ May 2012. Since the completion of service is important, as per the Point of Taxation Rules {POTR} the rate of service tax would be: Basic- 12% EC- 0.24 SHEC- 0.12- Total 12.36%. This is so because we do not receive any advance and billing prior to provision of service would not change the rate. III. Date of payment The date of payment would be irrelevant this year as the rate of 12% is effective for the year and changes if any are only expected to be in Budget 2013. This is for general guidance of members, however, members may take their independent and correct view regarding chargeability of service tax. Read more ...

How to File Revised Tax Return Online

If an individual has already filed the income tax return and subsequently discover any omission or wrong statement therein, he can re-file the return with necessary modification. This re-filing of the income tax return is referred to as Revised Return. The process for revising the return is very simple. Please remember that the process outlined below is applicable if you had filed the original return online. Rules related to Revised Return Revised return can be filed for any previous year at any time before the expiry of 1 year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. For this financial year (2010-11), you can file the revised return till March 31st, 2012 However, if the income tax department completes the assessment of your return earlier, then a revised return cannot be filed. Revised return can be filed only if the original return was filed before due date. Thus if a return is filed after a due date then it cannot be revised A loss return filed within time can also be revised and in such case loss as per the revised is carried forward One should have acknowledgement number and date of filing the original return in order to file a revised return Return filed in response to the notice u/s 148 can also be revised. It should be noted that notice u/s 148 is issued in respect of the escaped income in the respective assessment year In case of concealment of income and furnishing of inaccurate information in income tax return an individual will be penalized Read more ...

NRI (non-resident indian)

Tax saving options for NRIs:- When it comes to NRIs they do not have as much tax saving options open to them as the Resident Indians do. Here we show you the list of tax saving options available for NRIs and how NRIs can make maximum profit from them:    1. Section 80C - From the various tax saving avenues available to Indian tax savers –    (i) ELSS (Tax saving Equity Mutual Fund schemes) – ELSS are equity-oriented mutual fund schemes that invest in a diversified portfolio of Indian stocks. ELSS schemes can be purchased online and come with a lock-in period of 3 years. They are ideal for long-term tax-free savings. (ii) House property – Buying a house property in India is a good investment if you plan to come back in the future. The principal and interest payments made every year for a home loan availed in India are allowed as deductions subject to an overall limit of Rs 1 lakh per year on principal payments (under section 80C) and full interest payments made during the year (under section 24b) - in case of let-out property.               (iii) Life Insurance and Pension Plans – There are many life insurance and retirement/pension plans of Insurers that can be bought by an NRI. You can buy retirement plan with or without life cover and also choose between a traditional plan (endowment, money-back) and a unit-linked plan depending upon your risk appetite. Point to note is that the policies are issued in Indian Rupees only. There is also a facility available with few insurers like LIC for NRIs to obtain insurance cover from their present country of residence where all formalities are completed in their present country of residence, subject to fulfilment of certain rules and restrictions on sum insured amounts and add-on riders.             2. Section 80D - [Health insurance premium payment] - NRIs can purchase health insurance policy in India for themselves, their family and also dependant parents and claim deduction for the premium paid up to Rs 35,000 per annum [Rs 15,000 in case of non-senior citizens and Rs 20,000 for senior citizens];            3. Other Deductions u/s 80 – (i) Deduction under 80G - for specified donations; (ii) Deduction under 80E – for interest payment towards Educational loan taken from any bank/approved financial institution for higher studies (comprising full time as well as vocational studies pursued after passing senior secondary examinations studies) for self or any of immediate family members (children, spouse)             Investments not available for NRIs – PPF (Public Provident Fund), NSC (National Savings Certificate), SCSS (Senior citizens savings account), tax saving infrastructure bonds under section 80CCF and POTD (Post office time deposits) are not available for NRIs. However, if you had already opened any of these accounts when you were a Resident Indian, you can continue to service the account(s) till maturity. The overall limit on section 80C, 80CCC is Rs 1 lakh per annum.              Read more ...

Calculate your tax liability based on your taxable income.

After Budget-12, the Income Tax Department has published Online Tax Calculation Software on their portal.  This calculator calculate Tax liablity which is based on your Taxable Income of Fin. Year 2012-13 i.e. Assessment year 2013-14.  Simple procedure to calculate tax with this calculator.   For Example – If you earn annually Rs. 800000/- (Gross Income), deduct from Gross Income your 10 (i) Deductions then Less/Add your House Property Income under section 24. After these Deductions add your Other source of Incomeand then Less deduction under chapter VIA. After all you get Taxable Income.  This Taxable Income Put on Tax Calculator and follow the procedute.  You will get Tax Liability for Assessment Year 2013-14. Click Here to Calculate your Tax Liability for Assessment year 2013-14. Read more ...

RBI has made special Arrangement to Deposit TAX Payments on 30, 31 March 2012

Due to rush hour ReserveBank of India has made special arrangement to deposit Tax Payment on 30, 31 March 2012 at Mumbai and Navi Mumbai Offices except normal working time Hours.  RBI further instructed to all BankAgencies i.e. State Bankof India and theirAssociates, Public SectorBanks as well as designated private sectorbank to receive all types of taxes beyond Normal working hours. Thus the All Taxpayers are requested to take advantage of these facilities provided for the financial year ending March 31, 2012 and assessment year 2012-13 as per Press Release : 2011-2012/1551. Schedule of Tax Deposit is as below: Date Office Cash DepositTimings Cheque Deposit Timings March 30.2012 Fort Mumbai 10.00 AM to 4.00 PM 10.00 AM to 5.00 PM March 30.2012 Navi Mumbai Belapur 10.00 AM to 4.00 PM 10.00 AM to 4.00 PM March 31,2012 Fort Mumbai 10.00 AM to 4.00 PM 10.00 AM to 5.30 PM March 31,2012 Navi Mumbai Belapur 10.00 AM to 4.00 PM 10.00 AM to 4.00 PM Read more ...

Income tax india

Income Tax Department facilitates a PAN holder to view its Tax Credit Statement (Form 26AS) online. Form 26AS contains Details of tax deducted on behalf of the taxpayer by deductors Details of tax collected on behalf of the taxpayer by collectors Advance tax/self assessment tax/regular assessment tax, etc. deposited by the taxpayers (PAN holders) Details of paid refund received during the financial year Details of the High value Transactions in respect of shares, mutual fund etc. The Tax Credit Statement (Form 26AS) are generated wherein valid PAN has been reported in the TDS statements. Tax Credits Statement (Form 26AS) can be viewed/accessed through 3 ways : 1. View Tax Credit from https://incometaxindiaefiling.gov.in Taxpayers who are registered at the above potal viz. https://incometaxindiaefiling.gov.in can view 26AS by clicking on 'View Tax Credit Statement (From 26AS)' in "My Account". The facility is available free of cost.  For "New Registration", Click on 'Register' on the portal. The registration process is user-friendly and takes minimal time. View Demo2. View Tax Credit (Form 26AS) from bank site through net banking facility The facility is available to a PAN holder having net banking account with any of authorized banks. View of Tax Credit Statement (Form 26AS) is available only if the PAN is mapped to that particular account. The facility is available for free of cost. View Demo List of banks registered with NSDL for providing view of Tax Credit Statement (Form 26AS) are as below       1. Axis Bank Limited        2. Bank of India        3. Bank of Maharashtra       4. Citibank N.A.       5. Corporation Bank       6. ICICI Bank Limited       7. IDBI Bank Limited       8. Indian Overseas Bank       9. Indian Bank       10. Kotak Mahindra Bank Limited        11. Oriental Bank of Commerce       12. State Bank of India       13. State Bank of Mysore       14. State Bank of Travancore       15. The Federal Bank Limited       16. UCO Bank       17. Union Bank of India       18. Bank of Baroda       19. Karnataka Bank       20. The Saraswat Co-operative Bank Limited       21. City Union Bank Limited       22. State Bank of Patiala 3. View Tax Credit (Form 26AS) from TIN website The facility is available to PANs that are registered with Tax Information Network for view of 26AS statement. The PAN holder has to fill up an online Registration form for such purpose. Thereafter, verification of PAN holder's identity is done by the TIN-Facilitation Centre personnel either at PAN holder's address or at the TIN-facilitation center that has been chosen by the PAN holder. The verification involves a cost at prescribed rates. Once authorised, the PAN holder can view Tax Credit Statement online. Read more ...

What Is The Difference Between Tax Free Bonds & Long Term Infrastructure Bonds?

The time of investing under schemes which help you save tax is approaching. Which is why people have started exploring new investment avenues which can reduce there taxable income. ‘Tax Free Bonds’ and ‘Long Term Infrastructure Bonds’ are two good investment options available which can help you save tax. But most of the people do not know the difference between both these terms and how much one can save by investing under these investment alternatives. So lets have a discussion to understand the difference between ‘Tax Free Bonds’ and ‘Long Term Infrastructure Bonds’. What Are Tax Free Bonds? Tax free bonds are bonds issues by Government entities, to arrange funds for building country’s infrastructure. Few designated entities which issue tax free bonds in India includes National Highway Authority Of India (NHAI) tax free bonds and PFC. These bonds generally offers a return of around 8% and With a maturity period of around 10 to 15 years. What Are Long Term Infrastructure Bonds? Long Term Infrastructure Bonds are bonds issues by Industrial Finance Corporation of India Ltd. Life Insurance Corporation of India Infrastructure Development Finance Company Limited A Non-Banking Finance Company (NBFC) classified as an Infrastructure Finance Company by the Reserve Bank of India (RBI) In 2010, the government of India introduced a new section under Income tax act 1961 i.e section 80CCF. This section had been introduced to offer additional income tax deduction on investment upto Rs 20,000 in the financial year 2010-11. This deduction is over and above Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor’s savings into infrastructure sector directly. Read more ...