Income Tax

Income Tax Relaxation on NPS Maturity Value

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Income Tax Relaxation on NPS Maturity Value

LOK SABHA
UNSTARRED QUESTION No. 3975
TO BE ANSWERED ON FRIDAY, THE 10TH AUGUST, 2018

SHRI KONAKALLA NARAYANA RAO:
(a) whether the Government is contemplating to give tax rebate on the maturity value of the amount deposited under National Pension Scheme (NPS) like Public Provident Fund and if so, the details thereof;
(b) whether the Securities and Exchange Board of India has also recommended to this tax relaxation in the recently held Financial Stability and Development Council meeting and if so, the details thereof; and
(c) the stand of the Government in this regard?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SHIV PRATAP SHUKLA)

(a) No Madam. Currently, Government is not contemplating to give any tax rebate on the maturity value of the amount deposited under National Pension Scheme (NPS) like Public Provident Fund. In this context, it may be noted that under the existing provisions of the Income tax Act, 1961 the following payments from the National Pension System Trust are exempt:
(i) up to 40% of the total amount payable to an assessee on closure of his account or on his opting out of a Pension Scheme; and
(ii) partial withdrawal by an employee from NPS up to 25% of own contribution.
(b) No.
(c) Does not arise.

Source: https://loksabha.nic.in/

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Rates of Income-Tax for the financial year 2017-18

RATES OF INCOME-TAX AS PER FINANCE ACT, 2017:

As per the Finance Act, 2017, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head “Salaries” for the financial year 2017-18 (i.e. Assessment Year 2018-19) at the following rates:

2.1 Rates of tax

A. Normal Rates of tax:

SI.No Total Income Rate of tax
1 Where the total income does not exceed Rs. 2,50,000/-. Nil
2 Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 5 per cent of the amount by which the total income exceeds Rs. 2,50,000/-
3 Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 12,500/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4 Where the total income exceeds Rs. 10,00,000/-. Rs. 1,12,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-

B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

SI No Total Income Rate of tax
1 Where the total income does not exceed Rs. 3,00,000/- Nil
2 Where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000/- 5 per cent of the amount by which the total income exceeds Rs. 3,00,000/-
3 Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 10,000/- plus 20 per cent of the amount by
which the total income exceeds Rs. 5,00,000/-.
4 Where the total income exceeds Rs. 10,00,000/- Rs. 1,10,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-

C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

SI No Total Income Rate of tax
1 Where the total income does not exceed Rs. 5,00,000/- Nil
2 Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000/- 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-
4 Where the total income exceeds Rs. 10,00,000/- Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-

2.2 Surcharge on Income tax:

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Act, shall, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Act, will be as under:

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten percent of such income-tax and

(b) having a total income exceeding one crore rupees, at the rate of fifteen percent of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding;-

(a) Fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

2.3.1 Education Cess on Income tax:

The amount of income-tax including the surcharge if any, shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax.

2.3.2 Secondary and Higher Education Cess on Income-tax:

An additional education cess is chargeable at the rate of one percent of income-tax including the surcharge, if any, but not including the Education Cess on income tax as in 2.3.1.

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Calculation of Income tax an Employee Below 60 Age A.Y.2018-19

Calculation of Income tax an Employee Below 60 Age A.Y.2018-19

ANNEXURE-I

SOME ILLUSTRATIONS

Example 1

For Assessment Year 2018-19

(A) Calculation of Income tax in the case of an employee(Male or Female) below the age of sixty years and having gross salary income of:

i) Rs.2,50,000/- ,

ii) Rs.5,00,000/- ,

iii) Rs.10,00,000/-

iv) Rs.55,00,000/-. and

v) Rs. 1,10,00,000/-

(B) What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:

Particulars Rupees Rupees Rupees Rupees Rupees
(i) (ii) (iii) (iv) (v)
Gross Salary Income (including allowances) 2,50,000 4,00,000 10,00,000 55,00,000 1,10,00,000
Contribution of G.P.F. 45,000 50,000 1,00,000 1,00,000 1,00,000

Computation of Total Income and tax payable thereon

Particulars Rupees Rupees Rupees Rupees Rupees
(i) (ii) (iii) (iv) (v)
Gross Salary 2,50,000 4,00,000 10,00,000 55,00,000 1,10,00,000
Less: Deduction U/s 80C 45,000 50,000 1,00,000 1,00,000 1,00,000
Taxable Income 2,05,000 3,50,000 9,00,000 54,00,000 1,09,00,000
(A) Tax thereon Nil 2,500* 92,500 14,32,500 30,82,500
Surcharge 1,43,250 4,62,375
Add: Nil 50 1850 31,515 70,898
(i)   Education Cess @ 2%. Nil 25 925 15,758 35,449
(ii) Secondary and Higher Education Cess @1%
Total tax payable Nil 2,575 95,275 16,23,023 36,51,222

* After rebate of Rs 2500 u/s 87A

 

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Extension of Due Date for filing of Income Tax Returns

Ministry of Finance
Extension of Due Date for filing of Income Tax Returns

Posted On: 26 JUL 2018 6:16PM by PIB Delhi

The due date for filing of Income Tax Returns for Assessment Year 2018-19 is 31.07.2018 for certain categories of taxpayers. Upon consideration of the matter, the Central Board of Direct Taxes(CBDT) extends the ‘due date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers.

PIB

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CBDT: No Due Date Extension for filing Income Tax

CBDT – extension in due date for non-tax audit cases is fake and there are no such plans to extend this deadline beyond 31st July, 2018

CIRCULAR No.4/2018

F.No.370889/25/2018
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, Dated 21st July, 2018

This Circular is issued in pursuant to 139(1) of the Tax Act, 1961 is to clarify that rumors spreading across in media regarding extension in due date for non-tax audit is fake and no such plans to extend this deadline beyond 31st July, 2018. The department already received over 1 crore returns filed electronically.

As per Section 234F of the Income Tax Act, from 1st April 2018, the penalty for late filing income tax return would be as

(a) five thousand rupees, if the return is furnished on or the 31st day of December of the assessment year;

(b) ten thousand rupees in any other case:

Provided further that if the total income of the person not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees. Therefore, the assessees are hereby asked to file their ITRs before the due date to avoid the penalty.

(Sanyam Suresh Joshi)

DCIT, CBDT

Source: Confederation

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Linking of PAN with Aadhaar while filing of ITRs – CBDT Circular

Linking of PAN with Aadhaar while filing of ITRs – CBDT Circular

CBDT’s order regarding linking of PAN with Aadhaar while filing of ITRs

F.No.225/270/2017/lTA.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North-Block, ITA II Division,
New Delhi, dated the 30th of June, 2018

Order under Section 119 of the Income-tax Act, 1961

Vide its orders dated 31.07.17, 31.08.17, 08.12.2017 & 27.03.2018 in file of even number, CBDT had allowed time till 30th June, 2018 to link PAN with Aadhaar while filing the tax-returns. Upon consideration of the matter, the CBDT further extends the time for linking PAN with Aadhaar till 31st March, 2019.

sd/-
(Rajeswari R)
Under Secretary to the Government of India

Source: https://www.incometaxindia.gov.in

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Long Pending issues & ongoing agitation – Income Tax Employees and Officers Associations

Long Pending issues & ongoing agitation – Income Tax Employees and Officers Associations

No. 2/2018-19

Dated, 9th July, 2018

To
The Presidents/General Secretaries
of all the Units/Circles of ITGOA and ITEF

Dear Comrades,
Sub : Long Pending issues & ongoing agitation – regarding

As decided earlier by the Central JCA to embark upon the path of agitation on various issues affecting the membership of the JCA from 17th May 2018, all the affiliated units have participated in the agitation programme and successfully completed the first phase of agitation. It was due to the unified agitation of the members of the JCA, the CBDT had invited the JCA for a discussion on 26th June 2018 on the charter of demands. Though the meeting lasted more than 2(two) hours but no such concrete/positive assurances were received from the Chairman, CBDT regarding resolving of the issues at the earliest. On 27th June 2018 the matter was discussed in the Central JCA meeting held at Civic Centre, Delhi. The meeting threadbarely discussed the outcome of the meeting with the Chairman, CBDT and was of the opinion to continue the ongoing agitation till the minutes of the meeting is made available to the JCA. It was further decided that on receipt of the minutes, further intensification of the agitation would be decided, if necessary.

As per the decision of the meeting, we have persuaded with the Authorities of the CBDT for issuing the minutes immediately but the same was till awaited. Moreover, we have also observed that some of the issues on which positive assurances were given by the Chairman, CBDT, there were no progress. Considering the impasse continuing in the Board on resolving the issues we have no other alternative but to intensify the agitation.

Accordingly, as per the decision of the Central JCA meeting dated 27th June 2018 authorising the Joint Convenors to suggest for the intensification of the agitation, it is now decided to mount Phase-II of our agitation from 23rd July 2018. It was further decided to submit the same to the Chairman, CBDT informing him about the intensification of the agitational programme if the issues did not get resolved by 20th July 2018. It was further decided to hold Press meet on 20th July 2018 by all the Circles/Units at their respective headquarters for wider publicity of the issues relating to genuine grievances of the officers and employees of the Department. A press note in this regard will be forwarded by Central JCA to all Circles/Units in due time. The Central JCA will also undertake mobilisation programme from 16th to 20th July, 2018 and all Unit leadership are requested for extensive campaigning in all offices of respective Regions for implementation of the following programme successfully.

The next phase of agitation will be as under :- JULY 2018 ONWARDS

1) Lunch Hour Demonstration on 23rd July, 2018 in all stations;

2) To boycott Income Tax Day on 24th July 2018 and observing Black Day by wearing Black Ribbons. The members of JCA will not participate in any meeting of the committee that may be constituted for organising this programme immediately after issuance of the Circular of JCA.

3) Black Flag Demonstration on visiting Chairman/Members of CBDT and Officials of Directorates in all income tax offices where they visit. Boycott Outreach programme/Seminar by Officers/Officials (visit to Schools, TDS seminar etc.)

4) Not to attend office on Saturday , Sunday & Holidays by the JCA members.

5) Not to attend any duty in the nature of protocol duty by members of JCA

AUGUST 2018 ONWARDS

1) Non-participation in the Search and seizure operation, Survey including TDS & recovery Survey and spot verification;

2) Mass squatting programme by Office Bearers and Committee Members of the JCA in front of the Chamber/Conference Hall whenever the Video Conference takes place.

3) Observing Day Long Fasting on 9th August, 2018 from 10 AM to 5 PM by the Office Bearers and Committee Members of the JCA at all stations of PCCIT/CCIT/PCIT.

4) Half-a-day (from 2 PM) Walk Out on 28th August 2018.

SEPTEMBER 2018

One day Token Strike on 12TH September, 2018 by the members of the JCA. It was also decided that the Central JCA will meet again to take stock of the situation during the month of August, 2018. All the units of the JCA are requested to ensure implementation of the aforementioned agitational programme in case of non-settlement of the issues within 20th July 2018.

It was also decided that in many regions the local administration had constituted committees for celebration of the Income Tax Day on 24th July 2018. As we have already decided to boycott the Income Tax Day celebration hence we appeal to all our members who were nominated in the committees should not extend any co-operation in this respect. We are hopeful that with the cent percentage participation of all the units and members, the issues above will reach to a logical end.

With revolutionary greetings,

Yours fraternally,
sd/-
(AmitavaDey) (RupakSarkar)
Joint Convenors

Source: http://www.itgoawbunit.org

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Filling of Returns by every Government Servant – Income Tax

Filling of Returns by every Government Servant – Income Tax

Government Servant

भारत सरकार /Government of India
आयकर विभाग/Income Tax Department
आयकर आयुक्त चेन्नै-3 का कार्यालय, चेन्नै
Office of the Pr. Commissioner of Income Tax-3, Chennai
कमरा सं.410, चौथातल, आयकर भवन, 121, महात्मागांधी रोड, चेन्नै-34.
4th Floor, Main Building, 121, Mahathma Gandhi Road, Chennai-34.

P.N.DEVADASAN, IRS

Principal Commissioner.
Chennai

19/06/2018

To
The Drawing & Disbursing Officer
O/O Dy. Director of IT(INV) Unit III
139, IOC Bhavan I Floor IOC Bhavan Nungambakkam High
Road Nungambakkam Chennai – 600034

Dear Sir/Madam,

Sub: Filing of Returns by every Government Servant – Reg.

As you might be aware, every person who is having income more than Rs.2,50,000 is bound to file his/her return of income. This includes the Government Servants also. However, the data of returns filed indicate that more than 50% of the Government Servants at Chennai are not filling their income tax returns. I hope, you will agree that as government servants, we should abide by laws and to be role models to the common citizens of our country. If we, Government servants ourselves are violating law by not filling our income tax returns, we don’t have any moral right to blame other sections of society.

From this year i.e Assessment Year 2018-19 onwards, the Parliament has amended the Income Tax Act by introducing a new section 234F for imposing late fee on every person who is not filling his/her return of income within the due date. For salaried employees, the due date is 31-07-2018. This means all the salaried employees have to file their returns of income for the Financial Year 2017-18 (Assessment Year 2018-19) on or before31-07-2018. Otherwise they all mandatorily have to pay late fee amounting between Rs.1,000 to Rs.10,000 as per the provisions of Section 234 . Also, a penalty of Rs.5,000 can be imposed under section 271F on them. In addition to this, they can be prosecuted under section 276CC of the Income Tax Act for jail termsvarying between three months to seven years.

It may please be noted that these provisions are applicable to all the persons having gross income (excluding deductions) above Rs.2,50,000/-. It is understood that many persons who are claiming deductions under section 80C etc. (on GPF contribution, Life Insurance Policies, Housing Loan Repayment etc.) and adjustment of Interest on Housing Loan are under the impression that they need not file the return as their net income is below taxable limit and no TDS is deducted from their salary.

Therefore, I request you to kindly intimate and advice all the employees to whom the gross salary paid in the last year is more than Rs.2,50,000 to file their returns of income before 31-07-2018. It may also be noted that all the incomes earned by an employee such as rental income (including subletting of house/s), interest incomes, dividend from Co-operative societies and all such incomes should be declared in their returns of income. Later, if found to have omitted any such incomes, they are liable for separate penalty and prosecution for concealing those incomes.

A copy of this letter may be handed over to each of your employees who draw their salary through you. You may also discuss this issue with the Head of your Office/Department and request him/her to issue a circular to all the employees to file their return of income well in time.

In case of any clarification or suggestions, you may please contact the following Officers: Joint Commissioner Smt. Sumathy Venkataraman (8762300298), Assistant Commissioner Ms. N. Abhinaya (8939744880), Smt. Priya Ramakrishnan, ITO (9445954906), Shri Sundaramurthy, ITO (9445955554), Smt. Malarvizhy Kujur ITO (9962383336) or Shri V. Baladandayutham, ITO (9445954896).

Yours faithfully,

(P.N.DEVADASAN)

Source: Confederation

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New Benami Transactions Informants Reward Scheme, 2018 launched by the Income Tax Department

Ministry of Finance
New Benami Transactions Informants Reward Scheme, 2018 launched by the Income Tax Department

To get people’s participation in the Income Tax Department’s efforts to unearth black money and to reduce tax evasion

Posted On: 01 JUN 2018

It was found in many cases that black money was invested in properties in the names of others, even though benefits were enjoyed by the investor concealing his beneficial ownership in his tax returns. The Government had earlier amended Benami Property Transactions Act, 1988, by Benami Transactions (Prohibition) Amendment Act, 2016 to make the law stronger. With the objective of obtaining people’s participation in the Income Tax Department’s efforts to unearth black money and to reduce tax evasion, a new reward scheme titled “Benami Transactions Informants Reward Scheme, 2018″, has been issued by the Income Tax Department. This reward scheme is aimed at encouraging people to give information about benami transactions and properties as well as income earned on such properties by such hidden investors and beneficial owners.

Under the Benami Transactions Informants Reward Scheme, 2018, a person can get reward up to Rs. One crore for giving specific information in prescribed manner to the Joint or Additional Commissioners of Benami Prohibition Units (BPUs) in Investigation Directorates of Income Tax Department about benami transactions and properties as well as proceeds from such properties which are actionable under Benami Property Transactions Act, 1988, as amended by Benami Transactions (Prohibition) Amendment Act, 2016.

Foreigners will also be eligible for such reward. Identity of the persons giving information will not be disclosed and strict confidentiality shall be maintained.

Details of the reward scheme are available in the Benami Transactions Informants Reward Scheme, 2018, copy of which is available in Income Tax offices and on the official website of Income Tax Department www.incometaxindia.gov.in.

PIB

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CBDT notifies Income Tax Return Forms for Assessment Year 2018-19

New Income Tax Forms for AY 2018-19 – CBDT Notification

Ministry of Finance
CBDT notifies Income Tax Return Forms for Assessment Year 2018-19

The Central Board of Direct Taxes(CBDT) has notified Income Tax Return Forms (ITR Forms) for the Assessment Year 2018-19. For Assessment Year 2017-18, a one page simplified ITR Form-1(Sahaj) was notified. This initiative benefited around 3 crore taxpayers, who have filed their return in this simplified Form. For Assessment Year 2018-19 also, a one page simplified ITR Form-1(Sahaj) has been notified. This ITR Form-1 (Sahaj) can be filed by an individual who is resident other than not ordinarily resident, having income upto Rs.50 lakh and who is receiving income from salary, one house property / other income (interest etc.). Further, the parts relating to salary and house property have been rationalised and furnishing of basic details of salary (as available in Form 16) and income from house property have been mandated.

ITR Form-2 has also been rationalised by providing that Individuals and HUFs having income under any head other than business or profession shall be eligible to file ITR Form-2. The Individuals and HUFs having income under the head business or profession shall file either ITR Form-3 or ITR Form-4 (in presumptive income cases).

In case of non-residents, the requirement of furnishing details of any one foreign Bank Account has been provided for the purpose of credit of refund. Further, the requirement of furnishing details of cash deposit made during a specified period as provided in ITR Form for the Assessment Year 2017-18 has been done away with from Assessment Year 2018-19.

There is no change in the manner of filing of ITR Forms as compared to last year. All these ITR Forms are to be filed electronically. However, where return is furnished in ITR Form-1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form:-

(i) an Individual of the age of 80 years or more at any time during the previous year; or

(ii) an Individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the Return of Income.

The notified ITR Forms are available on the official website of the Department www.incometaxindia.gov.in.

Source: PIB

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The Government of India issues clarification regarding requirement for furnishing of Country-by Country Report under Section 286(4) of Income Tax Act, 1961

Ministry of Finance
The Government of India issues clarification regarding requirement for furnishing of Country-by Country Report under Section 286(4) of Income Tax Act, 1961

26 MAR 2018

 

In keeping with India’s commitment to implement the Recommendations of the 2015 Final Report on Action 13, titled “Transfer Pricing Documentation and Country-by-Country Reporting”, identified under the OECD Base Erosion and Profit Shifting (BEPS) Project, Section 286 of the Income-tax Act, 1961 (‘the Act’) was inserted vide Finance Act, 2016, which provides for furnishing of a Country-by-Country (CbC) Report in respect of an International Group.
The CbC Report is to be furnished by the ultimate parent entity of an International Group in the country or territory of its residence. As specified under sub-section (2) of Section 286, the said Report is to be furnished on or before the due date specified under Section 139(1) of the Act for furnishing of return of income for the relevant accounting year. The date for furnishing of CbC Report under sub-section (2) of Section 286 for FY 2016-17 was subsequently extended to 31stMarch, 2018 vide CBDT Circular No. 26 of 2017 dated 25th October, 2017.
Sub-section (4) of Section 286 specifies situations in which the said report shall be furnished in India by the constituent entity of an international group, resident in India, namely, those in which there is failure to obtain CbC Report on account of the parent entity being resident of a country or territory with which India does not have an agreement providing for exchange of CbC reports or where there has been a systemic failure of the country or territory and the same has been intimated to such constituent entity.

It has been brought to the notice of the Government that Constituent Entities of International Groups, resident in India, have apprehensions that the due date of furnishing of CbC Report under sub-section (4) of Section 286 is also 31st of March, 2018.

In order to allay the aforesaid apprehensions, it is hereby clarified that the due date of 31st March, 2018 applies for furnishing of CbC Report under sub-section (2) of Section 286 only and not under sub-section (4) of the said Section.

It is further stated that the Finance Bill, 2018 (as passed by the Lok Sabha) has proposed that the due date for furnishing of CbC Report under sub-section (4) of Section 286 shall be as prescribed. Accordingly, the time for furnishing of CbC Report under sub-section (4) of Section 286 of the Act is proposed to be prescribed after the enactment of Finance Bill, 2018.

PIB

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Deduction of Income Tax at the time of making payment

Deduction of Income Tax at the time of making payment

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-110066

CPAO/IT &Tech/Bank Performance/37 (Vol-II)/2017-18/ 204

09.03.2018

Office Memorandum

Subject:- Deduction of Income Tax at the time of making payment.

It is observed that some of the banks are not following the guidelines of the Income Tax Act regarding tax deduction on pension payments. Pensioners have raised grievances relating to the deduction of income tax at the fag end of the year causing undue financial hardship to the pensioners. Moreover, there is considerable delay in the issuance of Form-16 to the pensioners and in some cases, Form-16 are not being issued to the pensioners.

In view of the above, all Heads of CPPCs are advised to deduct the income tax at the time of each payment itself and issue Form-16 by 31st of May every year and follow the Income-tax guidelines issued from time to time.

(Md. Shahid Kamal Ansari)
(Asstt. Controller of Accounts)
Ph No.011-26103074

Be the first to comment - What do you think?  Posted by admin - March 13, 2018 at 9:26 pm

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Central Government Employees Group Insurance Scheme-1980 Tables of Benefits for the savings fund for the period from 01.01.2018 to 31.03.2018

CGEGIS Table of Benefits from Jan to Mar 2018

Central Government Employees Group Insurance Scheme-1980-Table of Benefits for the saving fund for the period from 01.01.2018 to 31.03.2018

No.7(2)/EV/2016
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, the 27th February, 2018

Office Memorandum

Sub: Central Government Employees Group Insurance Scheme-1980 Tables of Benefits for the savings fund for the period from 01.01.2018 to 31.03.2018 – reg.

The Tables of Benefits for Savings Fund to the beneficiaries under the Central Government Employees Group Insurance Scheme-1980, which are being issued on a quarterly basis from 01.01.2017 onwards, as brought out in this Ministry’s 0M of even number dated 17.03.2017, for the quarter from 01.01.2018 to 31.03.2018, as worked out by IRDA based on the interest rate of 7.6% per annum (compounded quarterly) as notified by the Department of Economic Affairs as per their Resolution dated 01.01.2018, are enclosed.

2. The Tables enclosed are of two categories as per the existing practice. As hitherto, the first Table of Benefits for the savings fund of the scheme is based on the subscription of Rs.10 p.m. from 1.1.1982 to 31.12.1989 and Rs. 15 p.m. w.e.f. 1.1.1990 onwards. The second Table of Benefits for savings fund is based on a subscription of Rs.10 p.m. for those employees who had opted out of the revised rate of subscription w.e.f. 1.1.1990.

3. These orders are in respect of Table of Benefits for the period from 01.01.2018 to 31.03.2018.

4. In their application to the employees of Indian Audit and Accounts Department, these orders are issued after consultation with the Comptroller & Auditor General of India.

5. Hindi version of these orders is attached.

sd/-
(Amar Nath Singh)
Director

 Source: www.doe.gov.in/
Original link: Finmin Orders

Be the first to comment - What do you think?  Posted by admin - February 28, 2018 at 1:48 pm

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Amendments in the income-tax act proposed to notify a new scheme for assessment in electronic mode

Press Information Bureau
Government of India
Ministry of Finance

01-February-2018 13:20 IST

Amendments in the income-tax act proposed to notify a new scheme for assessment in electronic mode.

E-assessment to be rolled-out across the country to transform age-old assessment procedure

In the General Budget 2018-19 presented in Parliament today, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley proposed to amend the Income-tax Act to notify a new scheme for assessment. Shri Jaitley said the assessment will be done in electronic mode which will almost eliminate person to person contact leading to greater efficiency and transparency. The Finance Minister added that the e-assessment system was introduced in 2016 on a pilot basis. In 2017, it was extended to 102 cities with the objective of reducing the interface between the department and the taxpayers. “With the experience gained so far, we are now ready to roll out the E-assessment across the country, which will transform the age-old assessment procedure of the income tax department and the manner in which they interact with taxpayers and other stakeholders” Shri Jaitley said.

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Relief to Senior Citizens: Exemption of Interest Income on deposits increased to Rs 50,000

Ministry of Finance
Relief to Senior Citizens: Exemption of Interest Income on deposits increased to Rs 50,000

Pradhan Mantri Vaya Vandana Yojana extended up to March 2020

Existed limit on investment under PMVVY enhanced to Rs 15 lakhs

With the objective of providing a dignified life to senior citizens, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley, announced significant incentives for senior citizens.

Presenting the General Budget 2018-19 in Parliament here today, the Finance Minister said that the exemption of interest income on deposits with banks and post offices to be increased from Rs. 10,000/- to Rs. 50,000/- and TDS shall not be required to be deducted on such income, under section 194A. This benefit shall be available also for interest from all fixed deposits schemes and recurring deposit schemes.

The Finance Minister also announced raising the limit of deduction for health insurance premium and/ or medical expenditure from Rs. 30,000/- to Rs. 50,000/-, under section 80D. All senior citizens will now be able to claim benefit of deduction up to Rs. 50,000/- per annum in respect of any health insurance premium and/or any general medical expenditure incurred.

Further, the Finance Minister proposed raising the limit of deduction for medical expenditure in respect of certain critical illness from Rs. 60,000/- in case of senior citizens and from Rs. 80,000/- in case of very senior citizens, to Rs. 1 lakh in respect of all senior citizens, under section 80DDB.

These concessions will give extra tax benefit of Rs. 4,000 crores to senior citizens.

In addition to tax concessions, the Finance Minister proposed to extend the Pradhan Mantri Vaya Vandana Yojana up to March 2020 under which an assured return of 8% is given by Life Insurance Corporation of India. The existing limit on investment of Rs. 7.5 lakh per senior citizen under this scheme is also being enhanced to Rs. 15 lakh.

PIB

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Tax Return Preparer (Amendment) Scheme, 2018

Amendment in Eligibility Qualification, Age, Fee and Remuneration for Tax Return Preparer (TRP)

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 19th January, 2018

 

G.S.R. 44(E). In exercise of the powers conferred by sub-section (1) of Section 139B of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following further amendments in the Tax Return Preparer Scheme, 2006, namely:-

Short title, commencement and application.
1. (1) This Scheme may be called the Tax Return Preparer (Amendment) Scheme, 2018.

(2) It shall come into force from the date of its publication in the Official Gazette.

 

2. In the Tax Return Preparer Scheme, 2006 (hereinafter referred to as the said Scheme), for paragraph 3, the following paragraph shall be substituted, namely:-

“3. An individual, who holds a bachelor degree from a recognised Indian University or institution, or has passed the intermediate level examination conducted by the Institute of Chartered Accountants of India or the Institute of Company Secretaries of India or the Institute of Certified Management Accountants of India, shall be eligible to act as Tax Return Preparer”.

 

3. In the said Scheme, in paragraph 4,
(1) for clause (i), the following clauses shall be substituted, namely:-

“(i) It shall invite application from persons,-

(a) having requisite educational qualifications specified in paragraph 3 or having appeared in the final year examination of the qualifying examination; and

(b) who is not below the age of twenty one years or more than forty-five years as on the 1st day of October of the year immediately preceding the date on which applications are invited.

(ia) It shall require that the application under clause (i) shall be accompanied by a fee of two hundred and fifty rupees, and failing which the application shall be invalid.”.

 

(2) for clause (v), the following clauses shall be substituted, namely

“(v) It shall enrol the persons who qualify the test for enrolment for each training centre separately.

(va) It shall not enrol any person under clause (v), unless –

(a) he makes a deposit of an amount of seven hundred and fifty rupees, which shall be nonrefundable; and

(b) he produces a proof of having passed the qualifying examination as specified in paragraph 3″.

 

(3) clause (ix) shall be omitted.”.

 

4. In the said Scheme, in paragraph 9, for sub-paragraph (1), the following sub-paragraphs shall be substituted,
namely:-

 

“(1) The Board may authorise the Resource Centre or the Partner Organisation to disburse to a Tax Return preparer, the following amount, namely:-

 

(a) five per cent. of the tax paid on the income declared in the return of income for First Eligible Assessment Year which has been prepared and furnished by him;

 

(b) three per cent. of the tax paid on the income declared in the return of income for the Second Eligible Assessment Year which has been prepared and furnished by him;

 

(c) two per cent. of the tax paid on the income declared in the return of income for the Third Eligible Assessment Year which has been prepared and furnished by him.

 

(1A) The amount of disbursement for any eligible person in relation to an eligible year shall not exceed,-

 

(a) five thousand rupees in case of First Eligible Assessment Year;
(b) three thousand rupees in case of Second Eligible Assessment Year; and
(c) two thousand rupees in case of Third Eligible Assessment Year.”.

 

[Notification No. 04/2018/F.No. 142/16/2010 (SO)-TPL(Part)]

Dr T.S.MAPWAL, Under Secy.

 

Note : The Tax Return Preparer Scheme, 2006 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide notification number S.O. 2039(E), dated the 28th November, 2006 and last amended vide notification number S.O. 2819(E), dated the 22nd November, 2010.

 

Authority: http://www.incometaxindia.gov.in/

Original Link: Click here

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Budget 2018 – Will income tax limit raise to Rs 3 or 5 lakh?

Budget 2018 – Will income tax limit raise to Rs 3 or 5 lakh?

“The tax slab is expected to be raised in favour of government employees”

According to information available, the annual budget, to be presented by Finance Minister Arun Jaitley on February 1, could have some sops for the middle-class families.

Post the Seventh Pay Commission, most government servants now find themselves within the tax slab. For a number of years now, government servants have been demanding that the tax-exemption slab be raised to Rs. 5 lakhs. The current exemption stands at Rs. 2.5 lakhs. There is a five percent tax on the income in the Rs. 2.5 lakhs to 5 lakhs bracket.

There are prevalent talks that the government could revise the slabs. This could come as a big boon for middle income groups, especially the salaried class who are suffering due to acute inflation. No changes were made in the tax slab last year, but the tax of 10 percent on the Rs. 2.5 lakhs to 5 lakhs slab was brought down to five percent.

The budget, to be presented next month, is expected to reduce the tax on the Rs. 5 lakhs to Rs. 10 lakhs slab to 10 percent (it currently stands at 20 percent). This could spell huge relief to the salaried class.

Similarly, the tax on the Rs. 10 lakhs to Rs. 20 lakhs slab could be reduced to 20 percent (currently stands at 30 percent). A tax of 30 percent is collected on the amount exceeding Rs. 20 lakhs. Tax rate on this slab is the lowest in India when compared to most other countries.

There is currently no exclusive tax slab for those earning between Rs. 10 lakhs and 20 lakhs, and those earning more than Rs. 10 lakhs automatically end up paying 30 percent in taxes.

The income tax department could raise the tax slab in order to provide relief to the salaried class that continues to suffer from the rise in prices of essential commodities due to inflation.

There are, however, some unconfirmed reports that claim that the tax slab is not likely to be raised to Rs. 5 lakhs.

Be the first to comment - What do you think?  Posted by admin - January 10, 2018 at 9:47 pm

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Government announced 8% GOI Savings (Taxable) Bonds

Government announced 8% GOI Savings (Taxable) Bonds

The Government of India (GoI) announced here today that 8% GOI Savings (Taxable) Bonds, 2003 shall cease for subscription with effect from the close of banking business on Tuesday, the 02nd January, 2018.

The Government of India (GoI) announced here today that 8% GOI Savings (Taxable) Bonds, 2003 shall cease for subscription with effect from the close of banking business on Tuesday, the 02nd January, 2018.

PIB

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No Proposal to Amend Income Tax Rates -Lok Sabha Q&A

Government says No Proposal to Revise Income Tax Rates this year

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

LOK SABHA
UNSTARRED QUESTION No. 1355
TO BE ANSWERED ON FRIDAY, THE 22ND DECEMBER, 2017
01, PAUSHA, 1939 (SAKA)

AMEND INCOME TAX RATES

1355. SHRI DEVENDRA SINGH BHOLE:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government proposes to amend the present rates of income tax so that more people may pay income tax;

(b) if so, the details thereof and the benefits likely to accrue to common man and the Government by this step; and

(c) if not, the reasons therefor?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SHIV PRATAP SHUKLA)

(a) to (b) No Madam. Currently, there is no such proposal under consideration.

(c) The rates of income tax are prescribed through the Finance Act every year

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Income Tax : List of Taxable Elements of Pay – PCDA

Income Tax : List of Taxable Elements of Pay – PCDA Pune
1. Taxable Element of Pay –

Sl. No. Taxable Elements of Pay
1. Pay in the Pay Band
2. Grade Pay
3. Military Service Pay
4. Dearness Allowance
5. Non-Practicing Allowance (if any)
6. Hazard/Special Hazard Pay
7. Para Allowance / Para Reserve Allowance/Special Commando Allowance
8. City Compensatory Allowance
9. Deputation (Duty) Alllowance (If any)
10. Reimbursement of Furniture
11. Reimbursement of Water
12. Reimbursement of Electricity
13. Technical Allowance
14. Qualification Pay
15. Special Action Group Allowance (on posting to National Security Guard)
16. Technical Pay
17. Language Allowance
18. Qualification Grant
19. Language Award
20. Flying Allowance
21. Leave Encashment on LTC
22. Specialist Allowance
23. Test Pilot Allowance
24. Instructor Allowance
25. Flight Test Allowance
26. Security Allowance
27. Strategic Force Allowance

Note: Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances.
2.    Non-Taxable Elements of Pay 

Sl No. Non-Taxable element of Pay Authority Limit of Exemption
1. Gallantary Award A.O. 46/79; U/S 10 (18) (i) of IT Acts w.e.f. 1947 Fully Exempt
2. Entertainment Allowance U/S 16 (ii) of IT Act w.e.f. 01/04/81 A sums equal to 1/5th  of salary (excluding any allowance/benefit)

or Rs.5000/- per annum whichever is less

3. Leave Travel Concession (LTC) U/S 10 (5) of IT Act w.e.f. 01/04/89 Actual Expenditure upto the limit of entitlement
4. Foreign Allowance U/S 10 (7) of IT Act Fully Exempt
5. Bhutan Compensatory Allowance (BCA) AO 395/74 and U/S 10 (7) of IT Act Fully Exempt
6. Servant Wages Allowance alongwith BCA AO 395/74 and U/S 10 (7) of IT Act Fully Exempt
7. Purchase of Crockery/Cutlery/ Glassware U/S 10 (7) of IT Act Fully Exempt
8. Outfit allowance on posting to Embassy U/S 10 (7) of IT Act Fully Exempt
9. Arrears of Cash Grant – Foreign Allowance (Nepal) U/S 10 (7) of IT Act Fully Exempt
10. Myanmar Allowance U/S 10 (7) of IT Act Fully Exempt
11. Representation Grant for use of crockery set U/S 10 (7) of IT Act Fully Exempt
12 Encashment of Leave on retirement whether on

superannuation/voluntary retirement/release/invalidment etc.

U/S 10 (10AA) (i) of IT Act w.e.f. 01/04/78 Fully Exempt
13. House Rent Allowance/House Rent Reimbursement

(HRA/HRR)

U/S 10 (13A) of IT Act w.e.f. 06/10/1964; Limit of

exemption as per Rule 2A of IT Rules

*Quantum of exemption is least of the following –
a) For Bombay/Kolkata/ Delhi Chennai
i) Allowance actually received.
ii) Rent paid

in excess of 10% of salary
iii) 50% of

salary
b) For other cities
i) Allowance actually received.
ii) Rent paid

in excess of 10% of salary.
iii) 40% of salary

14. Children Education Allowance U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl No.5 of the IT Rules

Rs.100/- per month per child upto a maximum of 2

children.

15. Hostel Subsidy U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl No.6 of the IT Rules

Rs.300/- per month per child upto a maximum of 2

children

16. Siachen Allowance U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl No.1 (II) of the IT Rules

Rs.7000/ per month w.e.f. 01/08/1997
17. Special Compensatory (Remote Locality) Allowance U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl.No.2 of the IT Rules

Category I – SCA ‘A’ – Rs.1300/- per month Category

III – SCA ‘B’ – Rs.1050/- per month. Category IV – SCA ‘C’
– Rs.750/- per month. Category VI – SCA ‘D’
– Rs.200/-

per month.

18. Compensatory Field Area Allowance (CFAA) U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl No.7 of the IT Rules

Rs.2600/- per month w.e.f. 01/05/1999
19. Compensatory Modified Field Area Allowance (CMFAA) U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl No.8 of the IT Rules

Rs.1000/- per month w.e.f. 01/05/1999
20. Any Special Allowance in the nature of Counter

Insurgency Allowance (SCCIA)

U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl.No.9 of the IT Rules

Rs.3900/- per month w.e.f. 01/05/1999
21. Transport Allowance granted to meet expenditure for

the purpose of commuting between place of residence and duty

U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl.No.10 of the IT Rules

For whole of India – Rs.1600/- per month
22. Transport Allowance granted to a blind or

orthopedically handicapped employee with disability of lower extremities, to

meet expenditure for the purpose of commuting between place of residence and

duty

U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl.No.11 of the IT Rules

For Whole of India – Rs.3200/- per month
23. High Altitude Uncongenial Climate Allowance (HAUCA) U/S 10 (14) (ii) of IT Act and Rule 2BB (2) Table

Sl.No.13 of the IT Rules

For areas of
(a)Altitude of 9000 to 15000 feet (HAUCA ‘I) –

Rs.1060/- per month w.e.f. 01/05/1999. (b)Altitude above 15000 feet (HAUCA

‘II’ & ‘III) – Rs.1600/- per month w.e.f. 01/05/1999.

24. Highly Active Field Area Allowance (HAFA) U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl.No.14 of the IT Rules

Rs.4200/- per month
25. Island (duty) Allowance granted to the members of

Armed Forces

U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table

Sl.No.15 of the IT Rules.

For Andaman & Nicobar and Lakshadweep group of

islands – Rs.3250/- per month inserted w.e.f. 29/02/2000.

26. Outfit Allowance
(Initial/Renewal)
U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of IT

Rules.

Fully Exempt
27. Compensation for the change of uniform U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of

the IT Rules

Fully Exempt
28. Kit Maintenance Allowance U/S 10 (14) (i) of IT Act and Rule 2 BB (1) (f) of

the IT Rules

Fully Exempt
29. Uniform Allowance (MNS) U/S 10 (14) (i) of IT Act and Rule 2 BB (1) (f) of

the IT Rules

Fully Exempt
30. Special Winter Uniform Allowance U/S 10 (14) (i) of IT Act and Rule 2 BB (1) (f) of

the IT Rules

Fully Exempt
31. Reimbursement of Medical Expenses U/S 17 (2) (viii) (v) of IT Act Actual expenditure upto Rs.15000/- per annum.
32. Any payment from Provident Fund U/S 10 (11) of IT Act Fully Exempt
33. Payment of Compensation – Disability Pension CBDT F.No. 200/51/99- ITA1 dated 02 Jul 2001 Fully Exempt

Note:
1. Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/ Allowances.

2. *Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. 01 Sep 08) + DA + NPA (if any).

DISCLAIMER: The above provisions are with the understanding and interpretation of IT Act 1961/IT Rules as amended and instructions issued by CBDT from time to time. Rules, provisions, further amendments and clarifications are issued by IT department/CBDT only and this office does not have any role in framing the same except IT deductions at source with reference to them.

Authority: https://pcdaopune.gov.in/

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