New Direct tax code is cleared:Exemption limits hiked, will have to pay less tax under DTC

2 comments Thursday, August 26, 2010
The cabinet has cleared new Direct tax code which is proposed to be implemented from 01-04-2011 onwards. The new Direct Tax code proposes to raise the basic exemption limit for individual tax payers from Rs 1.6 lakh to Rs 2 lakh. So there will be no tax on incomes below Rs 2 lakh. The exemption for senior citizens has been raised to Rs 2.5 lakh, up from 2.4 lakh at present.

Direct Tax Code incorporates all three direct tax act; IT Act of 1961, Wealth Tax of 1957, Dividend Distribution Tax of 1997.The Bill also seeks to remove surcharge and cess on corporate tax, providing relief to business houses. According to the new direct tax code corporate tax rate will be 30 per cent including all taxes, down from the existing 33 per cent.

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Development of IT infrastructure must before implementation of GST

0 comments Tuesday, August 24, 2010
Goods and Service tax (GST) is the most talked about topic in the field of indirect taxation today in India. Everybody is keenly waiting for the proposed GST draft which will replace the existing system of VAT in India. The central government wants the GST to be implemented in India by 1st April, 2011. Although there are and will be been many hurdles which are to be crossed before GST is implemented in India.

With the advent of GST the whole picture of indirect taxation in India will change. GST will help bringing to an end tax cascading i.e. tax on tax. But before GST is implemented all over the nation, the IT infrastructure connecting all the states must be developed.

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PROCEDURAL PROVISIONS RELATING TO TDS AND FILING OF TDS STATEMENTS UNDER INCOME TAX ACT 1961

1 comments Sunday, August 15, 2010
T.D.S means the Tax deducted at source. Whenever a person liable to deduct tax of another person under Income Tax Act, deducts tax, the credit of such tax is given to the deductee when his liability to pay income tax is calculated. Such credit is given on the basis of the information given by the deductor to the Income Tax Department by way of filing his T.D.S statements, wherein the full detail about the tax deducted, the PAN No of deductee etc are given, so that the right credit of T.D.S can be given to the deductee.

Rule 37BA(1) provides that credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chepter XVII, shall be given to the person to whom payment has been made or credit has been given (i.e.Deductee), on the basis of information relating to deduction of tax furnished by the deductor to the income tax authority or the person authorized by such authority.
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ENTRY TAX IMPOSED ON NEW ITEMS AND ENTRY TAX RATES ALREADY EXISTING REVISED BY PUNJAB GOVERNMENT

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The Punjab Govt has imposed entry tax on some new items and rate of entry tax on certain items has been revised. These revised rates of entry tax and imposition of entry tax on new items will come into force w.e.f 18/08/2010. The new items and revised rate of entry tax is given herebelow in the public notice issued by the Punjab Government.


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PRESUMPTIVE INCOME SCHEMES FOR SMALL ASSESSEES UNDER INCOME TAX ACT 1961

1 comments Sunday, August 8, 2010

There are many presumptive income schemes for small businessmen engaged in civil construction, transport business, retailers etc. A person covered under these schemes can declare his income under these sections on presumptive basis and can get himself free from the botheration of maintaining regular books of accounts u/s 44AA.

However these provisions are optional and an assessee covered under these schemes can also declare income outside such schemes by declaring lower profits as compare to what is required under these presumptive schemes. But in such case he will have not only to maintain compulsory books of accounts u/s 44AA but also will have to get his books of accounts audited u/s 44AB.

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A big Flaw and Mistake in The Punjab VAT Act 2005

0 comments Friday, August 6, 2010

There are many sections under the Punjab VAT Act where the word Designated officers is used. Many  powers under the Punjab VAT Act 2005 like of assessments, of levying penalties etc have been conferred on the Designated Officers. These Designated officers are appointed and conferred powers upon under section 3 of Punjab VAT Act 2005. Wherein the state govt has been authorised to confer various powers under the Punjab VAT Act 2005 on the different officials and allow them to act as designated officers under various sections of the PVAT Act 2005 by issuing a notification to that effect.
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FILING INCOME TAX RETURN AFTER DUE DATE

0 comments Monday, August 2, 2010

The due date for filing income tax return for  corporate aseessees and other aseessees who are  required to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others it is 31st July every year as have been prescribed u/s 139(1).

These due dates are also sometimes extended by the CBDT as this year has been done, extending the due date from 31st July to 4h August. For a layman sometimes it may create doubt if he fails to file his return of Income within due date, whether he can file his return of Income after the due date, especially when  he is under no obligation  to get his accounts audited under Income Tax Act or under any other law.

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