Posts Tagged ‘Income Tax’

Income Tax : List of Taxable Elements of Pay – PCDA

Advertisement

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/

Download Central Government Employees News iOS App . Click here Cg News for iPhone, iPad & iPod Touch app to download in your device.
Stay updated on the go with CENTRAL GOVERNMENT NEWS App. Click here Cg news for Phones app to download it for your device.

Be the first to comment - What do you think?  Posted by admin - October 31, 2017 at 2:45 pm

Categories: Income Tax   Tags: , , ,

7th Pay Commission: New allowances to come under income tax

7th Pay Commission: New allowances to come under income tax

7thPayCommission_allowances_income_ tax

New Delhi: A Senior Finance Ministry official said income tax will be imposed on the New allowances of central government employees under 7th Pay Commission recommendations from financial year 2017-18.

The Finance Bill 2017 proposed tax treatment on basic salary, bonus and allowances etc for both government and non-government salaried employees.

If all allowances excluding basic salary of central government employees are made tax free which will shows discrimination to others, he said.

The central government employees unions demanded many times that all new allowances under 7th Pay Commission recommendations should be income tax exempted.

The government implemented the new pay structure from January, 2016 for central government employees excluding allowances, the compensatory perks for all employees, which has been implemented from July 1, 2017.

The unions demanded for implementation of the allowances with retrospective effect from January 2016. However, there is a usual practice to pay the allowances from the date of implementation.

The officer also informed our reporter that the government had no plan since begaining to give allowances in arrears.

Keeping salaries and allowances hikes in mind, the Finance Minister Arun Jaitley allocated Rs 1.02 lakh crore in the 2016-17 Union budget for paying the central government employees.

The delay in the implementation of allowances is chiefly because of the financial gains of the government, while financial condition of the government is very sound.

The delayed implementation of allowances have saved the government nearly Rs 40,000 crore.

The central government employees are deeply annoyed at little allowances hike without arrears.

The bone of contention between central government employees’unions and government, the House Rent Allowance (HRA), which unions demanded at the rate of 30 per cent, 20 per cent and 10 percent of basic pay with arrears.

While the government approved 7th Pay Commission recommendations for reduction in the HRA rates to 24 per cent for X, 16 per cent for Y and 8 per cent for Z category of cities, which came into effect from July 1, 2017 and no arrears were paid.

Accordingly, The huge resentment among the central government employees over little allowances hike without arrears and the central government employees unions are threatening to strike over their growing anger about little allowances hike without arrears.

TST

Be the first to comment - What do you think?  Posted by admin - August 8, 2017 at 3:19 pm

Categories: 7CPC, Income Tax   Tags: , , , ,

Extension of date for filing of Income Tax Returns extended for five days up to 5th August, 2017

Extension of date for filing of Income Tax Returns extended for five days up to 5th August, 2017

There are some complaints that the taxpayers are not being able to log on to the e-filing website of Income Tax Department or not being able to link Aadhaar with PAN because of different names reflected in PAN and Aadhaar database. While technical snags have been removed already, the main reason for failure of people to log in is because of last minute rush and panic in which those who have already logged in want to continue for the entire period for fear of losing it.

In order to ease-out the panic situation, the Government has decided to take the following steps:

  • For the purpose of e-filing return, it would be sufficient as of now to quote Aadhaar or acknowledgement No. for having applied for Aadhaar in e-filing website. The actual linking of PAN with Aadhaar can be done subsequently, but any time before 31st August, 2017. However, the returns will not be processed until the linkage of Aadhaar with PAN is done.
  • In order to facilitate the e-filing of return, it is also decided to give extension of five days for e-filing of return. The return can be filed upto 5th August, 2017.

PIB

Be the first to comment - What do you think?  Posted by admin - July 31, 2017 at 6:45 pm

Categories: Income Tax   Tags: , , , , ,

CBDT notifies new scrutiny notices with e-facility for taxpayers

CBDT notifies new scrutiny notices with e-facility for taxpayers

New Delhi: The CBDT has notified revised income tax scrutiny notices that will allow taxpayers to conduct their business with the taxman over the Internet without needing to visit the I-T office, hence reducing physical interface between them.

The new format pertains to three types of notices that are issued by the taxman under section 143(2) of the Income Tax Act (scrutiny of tax return) and the Central Board of Direct Taxes, the policy-making body of the department, has told all field I-T offices in the country that “all scrutiny notices..

., shall henceforth, be issued in these revised formats only”.

“This has become necessary in view of board’s (CBDT) decision to utilise e-proceeding facility for electronic conduct of assessment proceedings in a widespread manner from this financial year,” the CBDT order, issued yesterday, said.

The three revised notices have been accessed by PTI and are meant for procedures of limited, complete and compulsory manual scrutiny.

A scrutiny procedure in the income tax system pertains to a case where a taxpayer is required to provide a number of documents and testimonials to the assessing officer (AO) after his or her case is picked up for a threadbare examination after study of their tax returns.

The department has said in the past that it only picks less than one per cent of the total I-T returns (ITRs) filed for examination under the long-drawn scrutiny process but this has still been a issue of grievance for many assessees.

Each of the three, one-page notices, will bear the name of the assessing officer, their designation, telephone and fax number and now, their email id too.

A taxpayer can use their account on the official e-filing website of the department (https://incometaxindiaefiling.gov.in/) or their personal email id to conduct their scrutiny assessment dealings with the AO.

“The department wants itself to be seen as a facilitator for the honest tax paying public without him or her requiring to visit the tax office and conducting their dealing with the AO with ease of the click of a computer mouse.The e-proceeding is aimed to curb complaints of harassment and corruption in tax related issues,” a senior officer of the department said.

The new notices will also carry a five-point explanation about the new changes being made for the taxpayer with the ushering in of the Internet-based e-proceeding regime in the Income Tax Department.

“As part of the e-governance initiative to facilitate conduct of assessment proceedings electronically, I-T department has launched e-proceeding facility.

“It is a simple way of communication between the department and assessee, through electronic means, without the necessity to visit the income tax office for conduct of assessment proceedings. This taxpayer friendly measure would substantially reduce the compliance burden for the assessee,” the note says.

However, the AO will have discretionary powers to call for additional documents and records and seek personal appearance of the taxpayer if there is a reason for him to delve deeper into the case and such a thing is not possible over the e-proceeding communication link.

The CBDT is also expected to soon implement the system of conducting the limited scrutiny cases via the ‘e-proceeding’ system through the official e-filing website.

PTI

Be the first to comment - What do you think?  Posted by admin - June 24, 2017 at 1:49 pm

Categories: Income Tax   Tags: , , , ,

Central Government notifies Exemption from Quoting Aadhaar / Enrolment ID to certain individuals

Central Government notifies Exemption from Quoting Aadhaar / Enrolment ID to certain individuals

The Central Government vide notification dated 11th May, 2017 has notified that the requirement of quoting of Aadhaar / Enrolment ID shall not apply to the following individuals if they do not possess the Aadhaar / Enrolment ID:

  • An individual who is residing in the state of Assam, Jammu and Kashmir and Meghalaya.
  • An individual who is a non-resident as per the Income-tax Act, 1961.
  • An individual of the age of eighty years or more at any time during the previous year.
  • An individual who is not a citizen of India.

The notification is available on the Income Tax website www.incometaxindia.gov.in.

Section 139AA of the Income-tax Act, 1961, as inserted by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrolment ID of Aadhaar application form for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July, 2017. Section 139AA (3) of the Act empowers the Central Government to notify the person(s) or State(s) to which the requirement of quoting of Aadhaar / Enrolment ID shall not apply.

PIB

Be the first to comment - What do you think?  Posted by admin - May 12, 2017 at 6:47 pm

Categories: Income Tax   Tags: , , , , ,

Income Tax department launches new facility to link Aadhaar with PAN

Income Tax department launches new facility to link Aadhaar with PAN

New Delhi: The Income Tax department has launched a new e-facility to link a person’s Aadhaar with the Permanent Account Number (PAN), a mandatory procedure for filing IT returns now.

The department’s e-filing website https://incometaxindiaefiling.gov.in/ has created a new link on its homepage making it easy” to link the two unique identities of an individual.

The link requires a person to punch in his PAN number, Aadhaar number and the exact name as given in the Aadhaar card”.

After verification from the UIDAI (Unique Identification Authority of India), the linking will be confirmed. In case of any minor mismatch in Aadhaar name provided, Aadhaar OTP (one time password) will be required,” the department said in its advisory to taxpayers and individuals.

The OTP will be sent on the registered mobile number and email of the individual.

It urged them to ensure that the date of birth and gender in PAN and Aadhaar are exactly the same, to ensure linking without failure.

There is no need to login or be registered on e-filing website (of the I-T department). This facility can be used by anyone to link their Aadhaar with PAN,” it said.

The government, under the Finance Act 2017, has made it mandatory for taxpayers to quote Aadhaar or enrolment ID of Aadhaar application form for filing of income tax returns (ITR).

Also, Aadhaar has been made mandatory for applying for permanent account number with effect from July 1, 2017.

The department, till now, has linked over 1.18 Aadhaar with its PAN database.

While Aadhaar is issued by the UIDAI to a resident of India, PAN is a ten-digit alphanumeric number issued in the form of a laminated card by the IT department to any person, firm or entity.

PTI

Be the first to comment - What do you think?  Posted by admin - May 11, 2017 at 3:35 pm

Categories: Income Tax   Tags: , , , , , , , ,

The Central Government has no plan to impose any tax on agriculture income : FM

The Central Government has no plan to impose any tax on agriculture income: FM

Following is the text of the Union Finance Minister Shri Arun Jaitley’s Statement on the subject to impose tax on agriculture income:

“I have read the paragraph in Niti Ayog Report entitled ‘Income tax on agriculture income’. To obviate any confusion on the subject, I categorically state that the Central Government has no plan to impose any tax on agriculture income. As per the Constitutional Allocation of Powers, the Central Government has no jurisdiction to impose tax on agricultural income.”

PIB

Be the first to comment - What do you think?  Posted by admin - April 26, 2017 at 6:36 pm

Categories: General news   Tags: , , ,

Revised scales of office space for various categories of officers and staff and special requirements of Central Secretariat excluding those serving in the Income Tax, Central Excise and Customs Departments

7th CPC: Revised scales of office space for various categories of officers and staff

Consequent upon implementation of 7th CPC Revised scales of office space for various categories of officers and staff: Directorate of Estates OM dated 16.03.2017

No.11015/1/98-Pol.1
Government of India
Ministry of Urban Development
Directorate of Estates

New Delhi, the 16th March, 2017

OFFICE MEMORANDUM

Subject:- Revised scales of office space for various categories of officers and staff and special requirements of Central Secretariat excluding those serving in the Income Tax, Central Excise and Customs Departments.
The undersigned is directed to refer to the then Ministry of Work & Housing O.M. No.11015(2)/75-PoI.IV dated 24.11.76, and Directorate of Estates O.M. of even number dated 20.10.87, dated 07.08.98, and dated 20.02.14 on the above subject and to say that consequent upon revision of pay scales of the Central Government employees on the recommendation of the 7th Pay Commission as notified  vide Central Civil Services (Revised Pay) Rules, 2016, and recommendations made by the Expenditure Management Commission (EMC) constituted by Ministry of Finance (Department of Expenditure), it has been decided to prescribe revised scales of office space for various categories of officers and staff and special requirements as under, with immediate effect:-

Table A – Revised scales of office space for Officer and staff
Sl. No. Existing Category Proposed Category Entitlement of Office space in (sq. ft./sq. mt.)
1. Officers drawing Gr. Pay of Rs.10000/- in PB-4 and above Officers drawing Pay in the Level 14, 15, 16, 17 and 18 360 sq. ft.(33 sq. mt.)
2. Officers drawing Gr. Pay of Rs.7600/- in PB-3 and above but less than the Gr. Pay of Rs.10000/- Officers drawing Pay in the Level 12, 13 and 13A 240 sq. ft.(22 sq. mt.)
3. Officers drawing Gr. Pay. of Rs.6600/- in PB-3 and above but less than theGr. Pay of Rs.7600/- Officers drawing Pay in the Level 120 sq. ft.(11 sq.mt.)
4. Officers drawing Gr. Pay of Rs.4800/- in PB 2 and above/ Section Officers in the Secretariat/ Attached Offices but less than the Gr. Pay of Rs.6600/- Officers drawing Pay in the Level 8, 9 and 10/ Section Officers in the Secretariat/Attached Offices drawing Pay in the Level 8, 9 and 10 60 sq. ft. (5.5 sq.mt.)
5. Technical Staff such as Draughtsman, Tracers, Estimators, etc Technical Staff such as Draughtsman, Tracers,Estimators, etc 60 sq. ft. (5.5 sq.mt.)
6. Ministerial Staff such as Superintendents, Head Clerks, Assistants, Clerks, Multi Task Staff (MTS) Ministerial Staff such as Superintendents, Assistant Section Officer (ASO), Senior Secretariat Assistant (SSA), Junior Secretariat Assistant (J SA), Head Clerks, Assistants, Clerks, Multi Tasking Staff MTS 40 sq. ft. (3.5 sq. mt.)
7. Ministerial Staff of Audit Offices Ministerial Staff of Audit Offices 40 sq. ft. (3.5 sq. mt.)

 

Table B – Revised Scales of office space for Special Requirement
Sl. No. Particular Prescribed entitlement of office space
1. Conference Room Conference Room should be subject to the requirement of of 237 sq.ft. (22 sq.mt) and maximum 474 sq.ft. 44.5 .mt.)
2. Visitors Room Visitors Room should be according to the requirement of a Ministry/Department but it should not be more than 474 sq.ft. (44 sq.mt.).  Visitor room of the size of  86 sq.ft (8 sq.mt.) will be provided to the officers of the rank of Joint Secretary . & above within the ceiling of 474 sq. ft
3. Receptionist 120 sq.ft. (11 sq. meters)
4. Security Room at every entrance 120 sq.ft. (11 sq. meters)
5. Canteen One Sq. ft. (0.09 sq. mt.) per person in an office including the space for the dining hall, kitchen, etc.
6. Dining/Tiffin Room (for lunch) 400 sq. ft. (36 sq. meters)
7. Ladies Common Room 120 sq. ft. (11.00 sq. Meters)
8. Class Room According to the requirement of Department but should not be more than 474 sq. ft. (44 sq. meters)
9. Library One sq. ft. for 25 books or one sq. meter for 275 books.
10. Old Records One sq. ft. for 20 recorded files or one sq. meter for 220 recorded files.
11. Care taker Room 120 sq. ft. (11 sq. meter)
12. CPWD Maintenance Staff Room 400 sq. ft. (36.00 sq. meter)
13 Stores As per requirement of each office but should not be more than sq. ft. (36.00 sq. meter)
14 Drivers Room 120 sq. ft. (11 sq. meter)

2.. The total screened requirement of office accommodation determined on the basis of revised scales will be subject to 20% austerity cut.

3. Provision for additional space in a new building, whether in the general pool or in a departmental pool, should be limited to- 10% of total requirement of an office for further expansion and that if a Ministry/Department wants more than 10% of the total requirement as additional space for expansion, they may do so with the approval of their Integrated Finance Division, keeping in view the need for maximum economy.

4. For assessment of prescribed revised scales, the total requirement for office space of the Ministry/Department and its Attached/Subordinate offices located in Delhi/New Delhi has to be given in the enclosed schedule I to IV.

5. The following categories of offices will be treated as eligible for the purpose of provision of General Pool Office Accommodation (GPOA):-

I. An office whose location in Delhi has been approved by the Cabinet / Cabinet Committee on Accommodation (CCA), subject to the condition that this approval has been granted without any restriction on provision of GPOA

II. The office is a part and parcel of the Secretariat of a Ministry or an attached / subordinate office of a Ministry / Department of the Government of India

III. The staff is paid from the consolidated Fund of India

6. This OM supersedes Ministry of Work & Housing & Urban Development O.M. No.11015(2)/75-PoI.IV dated 24.11.76, and Directorate of Estates O.M. No.11015/1/98-Pol.l dated 20.10.87, dated 07.08.98, and dated 20.02.14.

(Anand Singh)
Director of Estates

Source: https://drive.google.com/open?id=0B1FrUQeCAMMsLWQtWm5fT1ItWEk

Be the first to comment - What do you think?  Posted by admin - April 17, 2017 at 3:19 pm

Categories: 7CPC   Tags: , , , , , , ,

Central government to hire 2.8 lakh staff in a year, police, I-T and customs to get lions share

Central government to hire 2.8 lakh staff in a year, police, I-T and customs to get lions share

New Delhi: The size of the central government, particularly police and tax officials, is likely to grow with the Centre’s Budget providing for the recruitment of around 2.80 lakh more staff.

Of this number, more than 1.80 lakh would be recruits to departments of police, income tax, customs and central excise. As of March 2016, the central government had 32.84 lakh staff across 55 departments and ministries, including 13.31 lakh in railways, but excluding defence forces. This is projected to rise to 35.67 lakh by March 2018 if the recruitment goal is achieved.

Hiring-Spree

Strengthening enforcement agencies seems a priority with budgetary allocations made for expansion of police forces (central paramilitary and Delhi Police), taking their strength from 10.07 lakh to 11.13 lakh by March 2018. The Centre in its Budget has provided for the recruitment of around 2.80 lakh more staff. The income tax department, the agency involved in the drive against black money post-demonetisation, is set to expand from the existing strength of 46,000 to 80,000 by March 2018.

Similarly , customs and excise department, which will implement the ambitious goods and services tax regime, will get additional manpower of over 41,000.The current strength of 50,600 for customs and excise staff is to go up to 91,700. A review of the estimated strength of establishment  in the Budget annexures indicates no change in the manpower of railways, the single largest employer (13.31 lakh) other than defence, in the three years till 2018.

Departments of space, atomic energy , cabinet secretariat and the ministries of information and broadcasting and external affairs are some others where sanctioned strength has gone up significantly.

The government had projected to increase its manpower in 2016 by 1.88 lakh but failed to make fresh recruitments in I-T, customs and central excise departments.This led to an erosion in the employee base by at least 21,000 over the strength in 2015. People superannuating far exceeded new employees.

PM Narendra Modi’s interest in foreign policy has translated into a significant jump in the strength of the foreign ministry where the government has decided to add over 2,000 employees -up from 9,294 in 2016 to 11,403 in 2018. The I&B ministry , too, has increased its sanctioned strength from 4,012 two years ago to 6,258 in 2018.The cabinet secretariat has been strengthened with manpower to go up from 921 to 1,218 by next year.

TNN

Be the first to comment - What do you think?  Posted by admin - March 2, 2017 at 10:10 am

Categories: Central Government Jobs   Tags: , , , , , ,

New Benefits announced for NPS Subscribers: Budget 2017

Budget 2017 – New Benefits announced for NPS Subscribers

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PRESS RELEASE

In a bid to provide further impetus to the National Pension System (NPS), the following provisions have teen introduced in the Finance bill 2017 laid down in the Parliament today.

1. Tax-exemption to partial withdrawal from National Pension System (NPS)

The existing provision of section 10(12A) of the Income Tax Act. 1961 provides payment from National Pension System (NPS) to a Subscriber on closure of his account or opting out shall be exempt up to 40% of total corpus at the time of withdrawl . The amount utilized for purchase of annuity is also tax exempt. At the time of normal exit. 40% of the total corpus is mandatorily required to be purchased for annuity. The subscriber has the option to use higher amount for purchase Of annuity.

In order to provide further relief to the subscriber of NPS, it has been proposed to Insert a new clause (12B) in the section 10 of Income Tax Act, 1961 to provide exemption on partial withdrawal not exceeding 25% of the contribution made by an employee in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act. 2013 and regulations made there under.

This benefit will be effective on partial withdrawal made by the subscriber after 1st April 2017.

2. Further, Contribution up to 20% of the Gross Income of the Self-employed Individual ( Individual other than salaried class) will be deductible from the taxable income under Section 8OCCD(1) of the Income Tax Act.1961, as against 10% earlier.

This is with a view to provide parity between a salaried employee and a self-employed.

This benefit will be available on contribution made by the self employed persons on or after 1st April 2017.

This increased limit tor tax benefit will help the self-employed individuals, to save taxes on higher contribution in NPS and thereby properly plan for their old age income security.

Additional tax deduction on investment upto Rs. 50000/- under Section 80CCD(1B) will continue to remain the same for all NPS subscribers whether salaried or self-employed.

Be the first to comment - What do you think?  Posted by admin - February 13, 2017 at 11:09 pm

Categories: Income Tax   Tags: , , ,

New Income Tax Rates And Deductions Applicable From April 1, 2017

New Income Tax Rates And Deductions Applicable From April 1, 2017

With some tinkering in the income tax rates for 2017-18, Finance Minister Arun Jaitley reduced the tax rate for income between Rs. 2.5 lakh and Rs. 5 lakh to 5 per cent in the Union Budget, while adding a surcharge of 10 per cent on tax for income between Rs. 50 lakh and Rs. 1 crore.

Although the basic income tax exemption limit remains the same at Rs. 2.5 lakh, there are many exemptions available in the Income Tax Act, which can substantially reduce your tax liability.

One needs to plan from the beginning of the next financial year to take maximum benefit of the income tax deductions available.

Here are the new income tax slabs for taxpayers:

General category Senior citizens Super senior citizens
(Up to 60 years of age) (60-80 years) (Above 80 years)
Income Tax Income Tax Income Tax
Up to Rs. 2.5 lakh Nil Up to Rs. 3 lakh Nil Up to Rs. 5 lakh Nil
Rs. 2,50,001-Rs. 5 lakh 5% Rs. 3,00,001-Rs. 5 lakh 5% Rs. 5,00,001-Rs. 10 lakh 20%
Rs. 500,001-Rs. 10 lakh 20% Rs. 5,00,001-Rs. 10 lakh 20% Above Rs. 10 lakh 30%
Above Rs. 10 lakh 30% Above Rs. 10 lakh 30%
# Surcharge of 10% for income between Rs. 50 lakh and Rs. 1 crore
# Surcharge of 15% for income above Rs. 1 crore
# Rebate of up to Rs. 2,500 for taxable salary up to Rs. 3.5 lakh
# Education and higher education cess of 3%

Here are the some of the deductions available for FY2017-18: 

House Rent Allowance under Section 10 (13A) of the Income Tax Act

House Rent Allowance, commonly known as HRA, makes up a major chunk of a salaried individual’s total pay. HRA is partly exempted from tax. If you are staying in your own house or not paying any rent, your HRA will be completely taxable. However, those who stay with their parents can also claim HRA benefits by paying rent to their parents.

The amount which is allowed for exemption under HRA is calculated as minimum of:

1) Rent paid annually minus 10 per cent of basic salary plus dearness allowance

2) Actual HRA received

3) 40 per cent of basic and dearness allowance (50 per cent in case of metro cities)

Deductions under Section 80C

Section 80C of the Income Tax Act provides various provisions under which an individual can get deduction benefits up to Rs. 1.5 lakh. Employees’ Provident Fund (EPF), Public Provident Fund (PPF), Sukanya Samriddhi Account, National Savings Certificate and tax-saving fixed deposits are some of the investment options that offer benefits under Section 80C. The premium paid for life insurance plans, National Pension Scheme (NPS) and tax-saving mutual funds (ELSS) also qualify for deduction under Section 80C.

Further, one can claim tuition fees paid for up to two children, principal repayment on home loan, stamp duty and registration cost on the house bought as deduction under Section 80C.

Deductions under Section 80CCD(1B)

Introduced in Budget 2015-16, Section 80CCD (1B) provides deduction up to Rs. 50,000 for investment in NPS Tier 1 account. This deduction is over and above the deduction available in Section 80C. An individual in 30 per cent tax bracket can save up to Rs. 15,450 of tax by investing Rs. 50,000 in NPS.

Deduction of interest on housing loan (Section 24B)

Buying a house is among several other things an individual wants to do during his or her lifetime. The income tax rules also incentivise the same. Under Section 24B of the Income Tax Act, interest paid up to Rs. 2 lakh on housing loan and up to Rs. 30,000 on home improvement loan is allowable as deduction from your taxable income.

The government has however cut down tax benefits borrowers enjoyed on properties let out on rent. As per current tax laws, for properties rented out, a borrower could deduct the entire interest paid on home loan after adjusting for the rental income. On the other hand, borrowers of self-occupied properties get Rs. 2 lakh deduction on interest repayment on home loan.

However, according to the proposed change in Budget 2017, on rented properties, the borrower can only claim deduction of up to Rs. 2 lakh per year after adjusting for the rental income. And the amount above Rs. 2 lakh can be carried forward for eight assessment years.

Since the interest component of home loan repaid in initial years is higher, experts say that the borrower may not be able to fully adjust the interest paid as deduction even in subsequent years.

Deduction under Section 80EE

Under Section 80EE, an additional deduction of Rs. 50,000 is available over and above the limit of Section 24B on interest paid on home loans if the person is buying a house for the first time (the person must not own any other residential property on the date of sanction of loan). However, to avail the benefit of this section the value of the property must be below Rs. 50 lakh and the loan amount should not exceed Rs. 35 lakh. Further, the property must be bought after April 1, 2016.
Deduction under Section 80D

Premium paid for medical/health insurance for self, spouse, children and parents qualify for deduction under this Section. On can claim deduction of Rs. 25,000, if he is below 60 years of age, and Rs. 30,000 if he is above 60 years of age, towards medical insurance premium paid for self, spouse and children. Further, additional deduction of Rs. 25,000 is available if one has bought medical insurance for his parents. This deduction can go up to Rs. 30,000 if parents are above the age of 60 years.
Deduction under Section 80DD

If a tax payer has dependent parents, spouse, children or siblings who are differently-abled, then he can claim deductions up to Rs. 75,000 for expenses on their maintenance and medical treatment under this section. This deduction can increase to Rs. 1.25 lakh in case of severe disability.
Deduction under Section 80DDB

Under this section, one can claim deduction of Rs. 40,000 for treatment of certain diseases for self and dependents. The deduction can go up to Rs. 60,000 if the tax payer is above 60 years of age and if he is above 80 years of age, then the deduction amount is up to Rs. 80,000.
Deduction under Section 80E

According to the provisions of Section 80E, a taxpayer can claim deduction for interest paid on education loan for him, spouse or children. There is no upper limit on the amount of deduction. However, the loan must have been taken from a financial institutional or approved charitable institution and for full-time higher education.

Source: NDTV

Be the first to comment - What do you think?  Posted by admin - at 12:47 pm

Categories: Income Tax   Tags: , , , , , , , , ,

INCOME TAX FAQ : What are allowances? Are all allowances taxable?

INCOME TAX FAQ : What are allowances? Are all allowances taxable?

​What is considered as salary income?
​​​ section 17​​ of the Income-tax Act defines the term ‘salary’. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary.

​What are allowances? Are all allowances taxable?
Allowances are fixed periodic amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. E.g., Tiffin allowance, transport allowance, uniform allowance, etc.
There are generally three types of allowances for the purpose of Income-tax Act – taxable allowances, fully exempted allowances and partially exempted allowances.​

My employer reimburses to me all my expenses on grocery and children’s education. Would these be considered as my income?
​Yes, these are in the nature of perquisites and should be valued as per the rules prescribed in this behalf.​​

During the year I had worked with three different employers and none of them deducted any tax from salary paid to me. If all these amounts are clubbed together, my income will exceed the basic exemption limit. Do I have to pay taxes on my own?
​Yes, you will have to pay self-assessment tax and file the return of income.​

Even if no taxes have been deducted from salary, is there any need for my employer to issue Form-16 to me?
​​Form-16 is a certificate of TDS. In your case it will not apply. However, your employer can issue a salary statement.​

​Is pension income taxed as salary income?
​Yes. However, pension received from the United Nations Organisation is exempt.​​

Is Family pension taxed as salary income?
​No, it is taxable as income from other sources.​

​If I receive my pension through a bank who will issue Form-16 or pension statement to me- the bank or my former employer?
​​The bank.​

Are retirement benefits like PF and Gratuity taxable?
​​In the hands of a Government employee Gratuity and PF receipts on retirement are exempt from tax. In the hands of non-Government employee, gratuity is exempt subject to the limits prescribed in this regard and PF receipts are exempt from tax, if the same are received from a recognised PF after rendering continuous service of not less than 5 years.​

Are arrears of salary taxable?
​​​​Yes. However, the benefit of spread over of income to the years to which it relates to can be availed for lower incidence of tax. This is called as relief u/s 89​ of the Income-tax Act.​​

​Can my employer consider relief u/s 89 for the purposes of calculating the TDS from salary?
​​Yes, if you are a Government employee or an employee of a PSU or company or co-operative society or local authority or university or institution or association or body. In such a case you need to furnish Form No. 10E to your employer. ​​

​My income from let out house property is negative. Can I ask my employer to consider this loss against my salary income while computing the TDS on my salary?
​Yes, however, losses other than losses under the head ‘Income from house property’ cannot be set-off while determining the TDS from salary.​​

​Is leave encashment taxable as salary?
​​It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of non-Government employee leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.​

​Are receipts from life insurance policies on maturity along with bonus taxable?​
As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax. However, following receipts would be subject to tax:
Any sum received under sub-section (3) of section 80DD; or
Any sum received under Keyman insurance policy; or
Any sum received in respect of policies issued on or after April 1st, 2003, in respect of which the amount of premium paid on such policy in any financial year exceeds 20% (10% in respect of policy taken on or after 1st April, 2012) of the actual capital sum assured; or
Any sum received for insurance on life of *specified person (issued on or after April 1st 2013) in respect of which the amount of premium exceeds 15% of the actual capital sum assured.

* Any person who is –

i) A person with disability or severe disability specified under section 80U​; or

ii) suffering from disease or ailment as specified in the rule made under section 80DDB.

Following points should be noted in this regard:
Exemption is available only in respect of amount received from life insurance policy.
Exemption under section 10(10D)​ is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.
Amount received on the death of the person will continue to be exempt without any condition.​

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

Be the first to comment - What do you think?  Posted by admin - at 11:55 am

Categories: Income Tax   Tags: , , , , , ,

INCOME TAX TABLE: BUDGET 2017-18

INCOME TAX TABLE: BUDGET 2017-18

Finance Minister Arun Jaitley today proposed to reduce the tax rate for income up to Rs 5 lakh from the existing 10 per cent to 5 per cent while imposing 10 per cent surcharge on income between Rs 50 lakh and Rs 1 crore.
Following is the table of impact on individual on tax proposals:

INCOME TAX RATE IMPACT

  1. (Individual Tax Payers) Up to Rs 2,50,000 NIL NIL Rs 2,50,001 to Rs 5,00,000 5% Rs 7,725 (Savings)
  2. (Senior Citizens 60 years but less than 80 years) Up to Rs 3,00,000 NIL NIL Rs 3,00,001 to Rs 5,00,000 5% Rs 2,575 (Savings) Rs 5,00,001 to Rs 10,00,000 20% Rs 7,725 (Savings)
  3. (Senior Citizens 80 years and above) Up to Rs 5,00,000 NIL NIL Rs 5,00,001 to Rs 10,00,000 20% Rs 7,725 (Savings) (Surcharge of 10 per cent on income of all individuals above Rs 50 lakh and less than Rs 1 crore and surcharge of 15 per cent on income above Rs 1 crore).

PTI

Be the first to comment - What do you think?  Posted by admin - February 2, 2017 at 10:15 am

Categories: Income Tax   Tags: , , , ,

Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income

A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income.

“Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation.”

Press Information Bureau
Government of India
Ministry of Finance

01-February-2017 14:11 IST

Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.

Finance Minister appeals to all citizens to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in this slab.

A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income

The Union Finance Minister Shri Arun Jaitley reduced the rate of taxation from existing 10 per cent to 5 per cent for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50 per cent of their existing liability.

While presenting the General Budget 2017-18 in the Parliament today, the Union Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. The Finance Minister further said that if a nominal rate of taxation is kept for lower slab, many more people will prefer to come within the tax net. The Finance Minister made an appeal to all the citizens of India to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs.

The Union Finance Minister Shri Jaitley said that the Government is trying to bring within tax-net more people who are evading taxes. So, in order to expand tax net, it is decided to have a simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto Rs 5 lakhs other than business income. Also, a person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the Department regarding his high value transaction.

In his Budget Speech, the Finance Minister further said that in order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500, available only to assessees upto income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income upto Rs 3 lakhs per annum. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs. While the taxation liability of people with income upto Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The total amount of tax foregone on account of this measure is Rs 15,500 crore.

In order to make good some of this revenue loss on account of this relief, a surcharge of 10 per cent of tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore has been proposed. This is likely to give additional revenue of Rs 2,700 crore.

The Finance Minister said that the direct tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobilisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore.

PIB

Be the first to comment - What do you think?  Posted by admin - February 1, 2017 at 11:03 pm

Categories: Income Tax   Tags: , , , , , ,

Highlights of Union Budget 2017-18

Highlights of Union Budget 2017-18

1. All taxpayers above 5 lakh rupees to get benefit of 12,500 rupees across the board: FM
2. 10% Surcharge on individuals with income between 50 lakh to 1 Crore: FM
3. Surcharge of 10% for individuals earning between Rs 50 lakh- 1 crore; Surcharge for incomes > Rs 1 crore at 15% to continue: FM
4. A single one-page form for filing IT returns for taxable income up to 5 lakh rupees: FM
5. Tax on income from 2.5 lakh to 5 lakh reduced from 10 per cent to 5 per cent: FM
6. Time period of revising tax return to be reduced to 12 months: FM
7. Amendment to RBI Act proposed to enable electoral bonds: FM
8. Political parties will be entitled to receive donations in cheque or digital payment, every political party to file IT returns: FM
9. Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years now: FM
10. Maximum amount of cash donation a political party can receive to be 2000 rupees from any one source: FM
11. Computer emergency response team to be established Cyber security: FM
12. Rate of growth in advance tax in personal income tax in last 3 quarters of this financial year is as high as 34.8%: FM
13. Basic customs duty on LNG to be reduced from 5% to 2.5%: FM
14. Tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector: FM
15. To make MSMEs more viable, income tax for smaller companies to be reduced: FM
16. Profit linked deduction available to Startups for 3 years out of 5 years will be available for 3 years out of 7 years
17. Capital gains tax to be exempted,for persons holding land from which land was pooled for creation of state capital of Telangana: FM
18. Thrust in budget are affordable housing, promote digital economy, bringing transparency in political funding: FM
19. We are committed to make our taxation rate reasonable,our tax admin more fair & expand the tax base of the country: FM
20. Only 1.72 lakh people show income above Rs 50 lakh: FM
21. 1.5 crore people show income between Rs 2.5-5 lakh; 52 lakh people between between Rs 5-10 lakh; 24 lakh above Rs 10 lakh: FM
22. 5 special tourism zones,anchored on SPV, to be set up; Incredible India II campaign to be launched across the world: FM
23. Revenue Deficit target at 1.9% of GDP: FM
24. Govt to commemorate Champaran Satyagraha centenary: FM
25. Fiscal deficit pegged at 3.2 percent of GDP: FM
26. Aadhar-enabled payment system AadharPay to be launched: FM
27. Defence allocation of Rs 2.74 lakh crore: FM
28. Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts across the country: FM
29. Total allocation for infrastructure in Budget for Better India stands at a record level Rs 3,96,135 crore in 2017-18: FM
30. State run companies like IRCON and IRCTC to be listed in markets: FM

Source: http://www.newsonair.com/

Be the first to comment - What do you think?  Posted by admin - at 2:52 pm

Categories: Income Tax   Tags: , , , ,

Income tax reduced by 5% for Income upto Rs. 5 lakh: Budget 2017

Income tax reduced by 5% for Income upto Rs. 5 lakh: Budget 2017

Finance Minister announced in the budget speech for 2017-18 today in Lok Sabha, there were legitimate expectations of the salary class after demonetization to reduce the tax burden. He proposed reducing the present rate of income tax from 10 to 5 percent for the first slab of income from 2.5 lakhs to 5 lakh rupees

NEW INCOME TAX RATES 2017-18 (ASSESSMENT YEAR 2018-19)

Total Income Normal Rates of Income Tax
Up to Rs.2,50,000 to Rs.5,00,000 5%
  • All taxpayers above 5 lakh rupees to get benefit of 12,500 rupees across the board
  • 10% Surcharge on individuals with income between 50 lakh to 1 Crore
  • Surcharge of 10% for individuals earning between Rs 50 lakh- 1 crore; Surcharge for incomes > Rs 1 crore at 15% to continue
  • A single one-page form for filing IT returns for taxable income up to 5 lakh rupees
  • Tax on income from 2.5 lakh to 5 lakh reduced from 10 per cent to 5 per cent
  • Time period of revising tax return to be reduced to 12 months

Be the first to comment - What do you think?  Posted by admin - at 2:49 pm

Categories: Income Tax   Tags: , , ,

TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS on payment of accumulated balance under recognised provident fund and contribution from approved superannuation fund

Ministry of Finance has issued a circular about details of TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS ON PAYMENT OF ACCUMULATED BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTRIBUTION FROM APPROVED SUPERANNUATION FUND:

The   trustees of a Recognized Provident Fund, or any person   authorized   by the regulations of the Fund   to  make payment of  accumulated   balances due   to  employees, shall   in   cases where sub-rule(1) of Rule 9 of Part A of the Fourth Schedule   to the Act applies, at the time   when the accumulated   balance due to an employee is paid, make therefrom   the deduction specified in Rule 10 of Part A of the Fourth Schedule to the Act.

The accumulated balance is treated as income chargeable under the head “Salaries”.

Where any contribution   made by an  employer,  including   interest on  such  contributions,  if any, in  an approved Superannuation Fund is paid to the employee,  tax on the  amount so paid shall be deducted by the trustees of the Fund  to the extent provided in Rule 6 of Part B of the Fourth Schedule to the Act. TDS should be at the average rate of tax at which, the employee was liable to be taxed during the preceding three years or during the period, if that period is less than three years, when he was member of the fund.

The deductor shall remain liable to deduct tax on any sum paid on account of returned contributions (including interest, if any)  even if a fund or part of a fund ceases to be an approved Superannuation fund.

As per section 192A of the Act, w. e. f. 01.06.2015 the trustees of the EPF Scheme 1952 framed under section 5 of the EPF & Misc. Provisions Act, 1952 or any person authorized under the scheme to make payment of accumulated balance due to employees, shall, in a case where the accumulated balance due to an employee participating in a recognized provident fund is includible in his total income owing to the provisions of Rule 8  of Part A of Fourth Schedule not being applicable at the time of payment of accumulated balance due to the employee, deduct income tax thereon @ 10% if the amount of such payment or aggregate of such payment exceeds Rs 50,000/-. In case the employee does not provide his/her PAN No., then the deduction will have to be made at maximum marginal rate.

Check the Circular

Be the first to comment - What do you think?  Posted by admin - January 28, 2017 at 9:58 am

Categories: Income Tax   Tags: , , , , ,

Clarifications on implementation of GAAR provisions under the Income Tax Act, 1961

Clarifications on implementation of GAAR provisions under the Income Tax Act, 1961

The General Anti Avoidance Rule (GAAR) provisions shall be effective from the Assessment Year 2018-19 onwards, i.e. Financial Year 2017-18 onwards. The necessary procedures for application of GAAR and conditions under which it shall not apply, have been enumerated in Rules 10U to 10UC of the Income-tax Rules, 1962.The provisions of General Anti Avoidance Rule (GAAR) are contained in Chapter X-A of the Income Tax Act, 1961.

Stakeholders and industry associations had requested for clarifications on implementation of GAAR provisions and a Working Group was constituted by Central Board of Direct Taxes (CBDT) to examine the issues raised. Accordingly, CBDT has issued the clarifications on implementation of GAAR provisions today.

Amongst others, it has been clarified that if the jurisdiction of FPI is finalized based on non-tax commercial considerations and the main purpose of the arrangement is not to obtain tax benefit, GAAR will not apply. GAAR will not interplay with the right of the taxpayer to select or choose method of implementing a transaction. Further, grandfathering as per IT Rules will be available to compulsorily convertible instruments, bonus issuances or split / consolidation of holdings in respect of investments made prior to 1st April 2017 in the hands of same investor. It has also been clarified that adoption of anti-abuse rules in tax treaties may not be sufficient to address all tax avoidance strategies and the same are required to be tackled through domestic anti-avoidance rules. However, if a case of avoidance is sufficiently addressed by Limitation of Benefits (LoB) provisions in the tax treaty, there shall not be an occasion to invoke GAAR.

It has been clarified that if at the time of sanctioning an arrangement, the Court has explicitly and adequately considered the tax implications, GAAR will not apply to such an arrangement. It has also been clarified that GAAR will not apply if an arrangement is held as permissible by the Authority for Advance Rulings.
Further, it has been clarified that if an arrangement has been held to be permissible in one year by the PCIT/CIT/Approving Panel and the facts and circumstances remain the same, GAAR will not be invoked for that arrangement in a subsequent year.

The proposal to apply GAAR will be vetted first by the Principal Commissioner of Income Tax / Commissioner of Income Tax and at the second stage by an Approving Panel headed by a judge of High Court. The stakeholders have been assured that adequate procedural safeguards are in place to ensure that GAAR is invoked in a uniform, fair and rational manner.

Government is committed to provide certainty and clarity in tax rules. Further clarifications, if any, on doubts of stakeholders regarding GAAR implementation, will also be provided.

PIB

Be the first to comment - What do you think?  Posted by admin - January 27, 2017 at 6:11 pm

Categories: Income Tax   Tags: , , , ,

Budget may bring good news for salaried people

Budget may bring good news for salaried people

New Delhi: Every year when the Union finance minister presents the Budget speech, the ‘salaried people’ looks to him with expectations for reducing their tax liability.

It is possible that there would be some moves in this regard in the coming one.

The salaried people could get some relief as finance minister Arun Jaitley is likely to raise the minimum income threshold for paying personal income tax for those below 60 years of age to Rs 3 lakh a year from Rs 2.5 lakh at present and the deduction limit under Section 80C to Rs 2 lakh in the Union Budget for 2017-18, multiple sources told The Sen Times.

Currently the tax exemption slab is at Rs 2.5 lakh for individuals below 60 years, while deduction under Section 80C is Rs 1.5 lakh.

Union Finance Minister Arun Jaitley raised the personal income tax exemption limit from Rs 2 lakh to Rs 2.50 lakh on July 11, 2014 in the Union Budget for 2014-15.

Jaitley may also raise section 80C deductions limit to Rs 2.0 lakh, the sources said.

This move aimed at boosting household savings. The hike in deductions limit for investments by individuals in financial instruments to Rs 2.0 lakh would come as a sigh of relief for the salaried people blatting high inflation.

Investments under Section 80C up in popular tax saving instruments such as the general provident Fund, public provident fund, NPS, national savings scheme, unit-linked insurance plans and equity-linked savings schemes are not taxed up to the allowed threshold.

Section 80C was introduced by the UPA government in 2005-06 with a limit of Rs 1 lakh but UPA government did not revised it since then. Jaitley raised it up to Rs 1.5 lakh in the Union Budget for 2014-15.

Deduction on payment of income tax on interest paid on loans for self occupied houses may be also raised to Rs 2.5 lakh from Rs 2.0 lakh, the sources added.

Union Finance Minister will present the Union Budget on Wednesday.

TST

Be the first to comment - What do you think?  Posted by admin - at 3:00 pm

Categories: Employees News   Tags: , , , , , , ,

Income Tax benefits for NPS

Income Tax benefits for NPS

New Delhi: At the investment stage, National Pension System (NPS) offers the income tax benefits under different sections of the Income Tax Act – Section 80CCD (1), Section 80CCD (1b) and Section 80CCD (2).

NPS is especially useful for investors who may have exhausted the Rs 1.5 lakh investment limit under Section 80C but want to save more.

Under Section 80CCD (1): Investment up to Rs 1.5 lakh into NPS in a financial year is eligible for deduction under Section 80CCD(1). This deduction comes under the overall ceiling of Rs 1.5 lakh for deduction under Section 80C.

Under Section 80CCD (1b): In budget 2016, the government had introduced additional tax benefit for investment up to Rs 50,000 in NPS. If the taxpayer contributes more than Rs 1.5 lakh to the NPS in a year, the amount in excess of Rs 1.5 lakh can be claimed as a deduction under the new Section 80CCD(1b).

Under Section 80CCD(2): Over and above the ceiling limit of Rs 1.5 lakh provided under Section 80C and limit of Rs 50,000 under Section 80CCD(1B), contribution from the employer up to 10% of Basic Salary + Dearness Allowance is also eligible for deduction under Section 80CCD(2). There is no upper cap (in terms of amount) on this tax deduction and it is available only to employees.

Inputs with ET

Be the first to comment - What do you think?  Posted by admin - January 25, 2017 at 5:15 pm

Categories: Income Tax   Tags: , , , ,

Next Page »