New Service tax return notified - Last date- 25-03-2013

Click the link below to read the notification

http://www.servicetax.gov.in/notifications/notfns-2013/st01-2013.htm

Compensation to CA Firm for loss of referral work is a non-taxable capital receipt

Khanna and Annadhanam vs. CIT (Delhi High Court)

The assessee, a firm of Chartered Accountants, was one of the “associate members” of Deloitte Haskins & Sells for 13 years pursuant to which it was entitled to practice in that name. Deloitte desired to merge all the associate members into one firm. As this was not acceptable to the assessee, it withdrew from the membership and received consideration of Rs. 1.15 crores from Deloitte. The said amount was credited to the partners’ capital accounts & claimed to be a non-taxable capital receipt by the assessee. The AO rejected the claim. The CIT (A) reversed the AO. The Tribunal reversed the CIT (A). On appeal by the assessee to the High Court HELD reversing the Tribunal:

Things You Should Know Before Applying For PAN

PAN i.e., Permanent Account Number is an alphanumeric number by which the Assessing Officer can identify any person. Presently the Income Tax Department is allotting PAN under the New Series to all assessee which consists of ten alphanumeric characters and is issued in the form of a laminated card. The PAN is ultimately meant to supplant the General Index Register Number which is currently in use. The General Index Register Number is a number given an Assessing Officer to the assessee in the General Index Register maintained by him which also contains the designation and the particulars of the Assessing Officer.

Browser Settings for Income Tax e-filing website

The posting had been move to another website. Please click the link below to get the access of the same.  


https://taxofindia.wordpress.com/2015/11/27/browser-settings-for-income-tax-e-filing-website/ 

S. 54/54F: Several independent units can constitute “a residential house”

CIT vs. Gita Duggal (Delhi High Court)

The assessee entered into a development agreement pursuant to which the developer demolished the property and constructed a new building comprising of three floors. In consideration of granting the development rights, the assessee received Rs. 4 crores and two floors of the new building. The AO

Steps for Registration in Traces

What are the details that I need to enter in the registration form?

For Deductors

• Step–1
  • TAN of Deductor

• Step–2
  • Token Number of the regular statement corresponding to the Financial Year, Quarter and Form Type displayed on screen
  • Challan details of one particular CIN which has been mapped to at least three deductee rows. If there is no such challan, please enter details of challan having maximum number of deductee rows

• Step–3
  • PAN of Deductor
  • PAN of Authorised Person (person responsible for deduction of tax at source)
  • Date of Birth of Responsible Person as in PAN database
  • Designation of Responsible Person
  • Communication Address
  • Mobile Number
  • Email Id

For Tax Payers

• Step–1
  • PAN of Tax Payer
  • Date of Birth as on PAN Card
  • Name as in PAN database
  • Option 1 – Details from Form 26AS or salary slip (in case of salaried persons). Provide TAN of deductor who has deducted TDS / TCS, month & year of deduction and amount of tax deducted
  • Option 2 – Details of any tax paid by you. Provide Assessment Year for which payment was made by you, Challan Serial Number of the challan using which payment was made and amount as per the challan

• Step–2
  • Communication Address
  • Mobile Number
  • Email Id

Whether for purpose of transfer of a case u/s 127(2), mere mention of the reason 'for effective and coordinated investigation' is neither vague nor insufficient - YES: HC

THE issue before the Bench is - Whether for the purpose of transfer of a case u/s 127(2), the mere mention of the reason ''for effective and coordinated investigation' by the Revenue in the Show Cause Notice is neither vague nor insufficient.

The assessees were members of the same family/group companies. Search operations were carried out by the income tax authorities at their premises. Assessment proceedings arising out of such search were pending before the respective AO who were all authorities situated at

Centralized Processing Cell for TDS, CPC (TDS)

 

The Union Finance Minister Shri P. Chidambaram, will dedicate the Centralized Processing Cell for Tax Deducted at Source, CPC (TDS) to the nation tomorrow.

The CPC (TDS) will be situated at Aayakar Bhawan, Sector-3, Vaishali, Ghaziabad (UP). It will provide the tax deductors, taxpayers and the Assessing Officers, a wide range of online services related to TDS through a functionality designated TDS Reconciliation, Analysis and Correction Enabling System (TRACES).

TRACES through its portal (https://www.tdscpc.gov.in) will provide a bouquet of services like viewing and downloading of Form 26AS by taxpayers, downloading of Consolidated Files for filing of correction statements. The facility of downloading of TDS Certificates in Form 16 and 16A by tax deductors is a measure of convenience for the deductees. This will facilitate proper reconciliation between credit of taxes paid by deductors and claimed by deductees. E-Tutorials for tax deductors would be immensely useful for educating tax deductors for enhancing compliance.

Further, TRACES will also enable multiple modes of communication to reach out to the deductors and deductees for immediate correction, reconciliation and matching of TDS payments. Banks, being the most important Tax Deductors will now have the facility to file correction statements online to minimize the difficulties faced by Tax Deductees in claiming credit of Tax Deducted at source. It is expected that this facility will, to a large extent, ameliorate the problem faced by Tax Payers of mismatch in credit of Tax deducted and claimed in the Return of Income.

A toll free Call Centre (Toll Free No.1800 103 0344) is functional for the convenience of deductors/ deductees. Instant communication by way of E-mail (contactus@tdscpc.gov.in) and SMS alerts are other unique features of the CPC(TDS).

The Revenue Secretary and other Secretaries from Ministry of Finance, Chairperson (Central Board of Direct Taxes) and other dignitaries from Central Board of Direct Taxes and Central Board of Excise and Customs will also grace the occasion.

FAQ ON EPF MEMBER PASS BOOK

1. What is Member Portal?
	Member Portal is for Employee, Where Employee can check own PF Status.
2. What is E-Passbook
	E-Passbook is the employee Provident Fund status book (PDF). Employee can check own PF status
3. REG 01: WHO CAN REGISTER ON THE MEMBER PORTAL?

S. 14A & Rule 8D: Expense specifically relatable to taxable income cannot be disallowed

JCIT vs. Pilani Investment & Industries Corpn. Ltd (ITAT Kolkata)

For AY 2008-09, the AO computed the s. 14A disallowance under Rule 8D by excluding from the total general expenditure of Rs.1,16,94,912, an amount of Rs.19,96,228 being expenses related to house property income, interest expenditure and demat charges. The balance expenses were allocated as relating to tax exempt income in the ratio of tax exempt receipts to total receipts. On this basis,

New NSDL RPU version 3.2 for Quarterly e-TDS/TCS Returns and Correction Statements.

ITD has notified revised file formats for preparation of TDS and TCS returns in electronic form. Deductors/collectors can prepare the e-TDS/TCS returns as per these file formats using in-house software or any other third party software and submit the same to any of the TIN-FCs established by NSDL. Deductors/collectors can also directly upload the e-TDS/TCS returns through NSDL-TIN website.

NSDL has developed software called e-TDS/TCS Return Preparation Utility (RPU) to facilitate preparation of e-TDS/ TCS returns. This is a freely downloadable MS excel based utility. Separate utilities are available for preparation of each type of return.

Advantages of a Private Limited Company Over a Public Limited Company

Taxbymanish has received, in the last couple of months, innumerable queries from bootstrapped entrepreneurs and start ups on the advantages a private limited company can give to their business ideas, compared to a public limited company. To start with, there a quite a lot of advantages of a Private Limited Company over a Public Limited Company. We may also interchange the word ‘advantages’ with the word ‘relaxation’ in certain situations too. We have tabulated the queries and the most justified opinion as hereunder, accompanied by the relevant sections of the Companies Act,

Whether principle of promissory estoppel can be invoked, once tax concession granted under a specific Section of I-T Act, is taken away by any other Section under Act - NO: HC

THE issues before the Bench are - Whether a company is immuned from the MAT liability, once it is eligible for tax benefits u/s 80-IB; Whether the principle of promissory estoppel can be invoked, once tax concession granted under a specific Section of the Income Tax Act, is taken away by any other Section under the Act and Whether Section 80-IB can have any effect or control over the provisions of Section 115JB, although the latter is a specific charging section introduced later in the Act. And the verdict goes against the assessee.

Facts of the case

The assessee is a company registered under the provisions of Companies Act, 1956 and had set up a newly established industrial unit in Silvassa, a notified backward area. The assessee had been claiming deduction u/s 80-IB. Section 11JB, Minimum Alternate Tax provision was

Brand creation expenses are revenue expenditure

Expenditure incurred by the assessee is not creating any enduring benefit of an asset but is rather helping the assessee in augmenting its sales and resultantly its profit. Even if it is presumed that the building of brand image of Nirvana is giving advantage of enduring benefit to the assessee, still it would be on revenue account as there is no creation of a tangible or intangible asset of enduring nature to the assessee. The hon’ble Supreme Court in the case of Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 , has held that no tests for distinguishing between capital and revenue expenditure is paramount or conclusive. There is no all-embracing formula which can provide a ready solution to the problem, whether it is a capital expenditure or revenue expenditure. Their Lordships have held that even tests of enduring benefit at times gets failed as not each and every advantage of enduring nature can be of capital field.

Be careful

Dear Friends,

Today there had been two terror attacks in Hyderabd where number of innocents had been killed.  There may be more attackes on other parts of the country. request you to kindly be very careful when you are outside of the home, espcially travelling in public transport.

Income Tax implications on 2nd House Property Purchased for Parents

The income from house property is taxable on the basis of its “Annual Value”. The term “Annual value” is elaborated at point No. 6 hereunder.

The tax implication / housing loan benefit for the second house property is not similar/ same as applicable to the first house property. The second house property has a different tax treatment under the Income Tax Act-1961.
 

One house used by the tax payer for his/her own residence is exempt from tax as its annual value is treated as Nil.

Highlights of Rajiv Gandhi Equity Savings Scheme (RGESS):

You have very short period to save Income Tax by Investments. Now the Question is arise where tax payee invest to get Tax saving more. In this matter a New Tax Saving (Benefit) Scheme introduced by the Ministry of Finance i.e. The Rajiv Gandhi Equity Savings Scheme (RGESS) for equity investment in select stocks, mutual funds and ETFs. In this scheme, you are a first time investor with a gross annual income less than`10 lakh, then up to `50,000 of your investments in the stock market

Whether commission paid by company to an HUF consisting of Directors of company can be construed as perquisites in hands of Directors u/s 2(24)(iv) - NO: Madras HC

THE issues before the Bench are - Whether commission paid by the company to an HUF consisting of the Directors of the company can be construed as perquisites in the hands of Directors u/s 2(24)(iv); Whether it is irrelevant through whom the amount was paid/routed, when once it is established that amount received from the company is used for meeting personal expenses of the directors; Whether admission made during survey proceedings u/s 133-A can be made basis for making any addition of amount, which is liable to be taxed and Whether when there is contradiction on the factual aspects of modus operandi of payment of commission arising out of complex group of transactions, the matter can be remanded for fresh consideration. And the ruling goes in favour of the assessee.

Facts of the case

The assessees are, C.S.Narasimhan, C.S.Srivatsan, C.S.Seshadri and C.S.Varadhan, who are the Directors of a Company, 'M/s. C.R.S. Sons & Co. Limited'. The company is engaged in the

TDS return under digital signature optional, new forms & rule to claim refund

Certain changes with regard to the compliance to be made in respect of TDS and TCS, has been made vide CBDT notification No. 11/2013 dated 19.02.2012. A summary of the same is as follows:-

1) All statements to be furnished in Form nos. 24Q, 27Q and 26Q shall be furnished electronically with option to furnish it under a digital signature;

2) Deductor can file statement in the new Form 26B to claim refund of the sum paid to the Central

No s. 271(1)(c) Penalty If Quantum Appeal Admitted By High Court: Delhi High Court

The assessee’s appeal against the disallowance made u/s 14A was admitted by the High Court. The AO levied penalty u/s 271(1)(c) in respect of the said disallowance. The CIT(A) and the ITAT set aside the penalty levied u/s 271(1)(c) on the ground that the issue of deduction u/s 14A was a