Salaried taxpayers upto 5 Lac income need not to file returns- notification to be issued in June1 comments Tuesday, May 31, 2011As many as 85 lakh salaried tax payers with an annual income of up to Rs 5 lakh will not have to file income-tax return from now onwards, a finance ministry official said. "No income-tax returns would be required for salaried persons earning up to Rs 5 lakh per annum. We would notify this in first week of June," outgoing Chairman of Central Board of Direct Taxes Sudhir Chandra told reporters here. The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year). However, such tax payers would have to file return if they want to claim refunds, Chandra said. Seller not liable to pay tax or penalty, if C forms given by Purchaser found to be not genuine afterwards- Madras High Court0 commentsThe Madras High Court in an important judgement delivered in case of M/S Sastha Enterprises Vs. Appellate Authority, Commissioner(CT) II (FAC) [VSTI 2011 MAD B-165] has held that selling dealers cannot be held for higher tax liability and consequential penal action for false declaration of the documents produced on the side of Buyer. In this case the seller was held liable in reopened assessment case, to pay tax by rejecting in transit sales on the ground that the C form obtained from the purchaser was found to be not genuine as the same was not issued by the concerned Assessing Authority. Hon’ble High Court in this case held that unless and otherwise it is, based on concrete material, found out that the transaction is not true or the petitioner-seller is the party to the act of fraud said to be committed by the purchaser, the question of disallowing the exemption already given to the petitioner for the transaction actually effected between the parties, does not at all arise. No penalty u/s 271(1)(c) for faliure to disallow u/s 14A unless malafide is proved- Delhi ITAT0 comments Monday, May 30, 2011I have found the order of Delhi ITAT in the case namely DCIT Vs Nalwa Investments Ltd. very important one wherein it has been held that mere faliure to disallow expenses u/s 14A will not amount to levy of penalty u/s 271(1)(c) unless malafide is proved. In this case even the auditors did not suggest disallowance u/s 14A in respect of expenses relating to tax free income. Hence no malafide intention for not attributing expenses to tax free income was proved consequently no penalty u/s 271(1)(c) could be levied. Exemption from long term capital gain u/s 54F of Income Tax Act 1961.0 commentsIf you have sold a long term capital asset other than residential house you can save the tax payable on the long term capital gain arising from such sale by investing the sale proceeds into a residential house u/s 54F of Income Tax Act 1961. Here below the provisions of section 54F have been discussed. Exemption is available to Individual and HUF: Exemption u/s 54F is available only to an Individual and HUF assesses. Therefore if a firm or company etc (i.e other than individual and HUF assesses) have any long term capital gain, no exemption u/s 54F will be available to them. Four points essential to escape murder conviction-Supreme Court0 commentsAn accused can escape conviction for murder if he proves that there was no premeditation for the act, occurred in a heat of passion, no cruelty involved and undue advantage taken, the Supreme Court has ruled. A bench of justices Asok Kumar Ganguly and Deepak Verma in a judgement said that the accused can seek immunity from murder only if all these four above circumstances are established in defence of the crime. "In order to bring a case under Exception (4) to Section 300 IPC, the evidence must show that the accused acted without any premeditation and in a heat of passion and without having taken undue advantage and he had not acted in a cruel or unusual manner. Why petrol prices are highest in Punjab?0 comments Sunday, May 29, 2011Petrol prices in Punjab are highest in In Punjab VAT on Petrol is charged @ 27.5 per cent and surcharge on the VAT is 10 per cent which makes total VAT on petrol @ 30.25 per cent. Deductions available under Section 80C of Income Tax Act, 19610 commentsEvery Taxpayer is entitled to reduce his tax liability by taking benefits of various deductions available under the Income Tax Act. Therefore one should plan his investment and make decision in such manner that, he may get benefit of deductions u/s 80C to 80U. Section 80C of Income tax Act is an important section wherein investment in certain saving plans and some other expenditures are allowed as deduction to the taxpayer from his total income thereby saving his taxes. The computation of expacted total income and tax thereon should be made right at the beginning of new financial year and should be reviewed in the later part of the financial year. The Finance Act, 2005 has withdrawn the rebate u/s 88 and in its place re-inserted section 80C for deduction in respect of contribution to PF, LIC premiums, investment in NSC, infrastructure bonds etc, w.e.f A.Y 2006-07. Input Tax Credit on Capital Goods under Punjab VAT Act, 2005.2 comments Saturday, May 28, 2011
I have received a querry relating to admissibility of ITC on capital goods. I have replied to it and considering the matter of concern for dealers at large in
Question: Dear Mr Bajaj, As per our telephonic talk today I am submitting my query to you for your comments : Scope of Rule 114B regarding furnishing of PAN in certain transactions extended0 commentsAs per the new amendment in rule 114B of Income Tax Rules, now PAN will also have to be furnished in respect of payment of LIC premium of aggregating Rs. 50000 or more in a year. PAN will also be required to be furnished while making payment to a dealer of Rs. 5 Lakh or more or against a bill of Rs 5 Lakh or more for purchase of bullion or jewellery. The word Dealer has been mentioned in newly added clause (r) to Rule 114B, but who will be considered as dealer is a question to be asked, since no corresponding explanation defining the word dealer has been added in the rule. Instructions for filing Sehaj Form (ITR 1) for A.Y 2011-120 comments Friday, May 27, 2011Instructions for filing Sehaj form have been notified. Not only a layman but also every professional must go through these instructions before filing the form as many new things may come to picture which we might not be aware of. Survey party will provide the taxpayer, names, designation & contact details of CCIT, ACIT/JCIT before starting survey-CBDT0 commentsCBDT has issued some instructions for bringing transparency in the Survey Operations carried under Income Tax Act 1961. As per the instructions now the survey party will inform the taxpayer on whom survey operations are carried on, before the start of survey proceedings the name designation and contact numbers of the CCIT &Additional CIT/JCIT and also will inform the taxpayer that if he has any grivence he can contact the said authorities. The instructions as issued are produced herebelow for ready reference. Tax paid by contractee on goods supplied to contractor, is allowable as ITC to such contractor0 comments Thursday, May 26, 2011The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor. Rates of Tax on various Goods under Punjab VAT Act 20050 comments Wednesday, May 25, 2011I am sharing hereby various schedules under Punjab VAT Act 2005 prescribing rates of tax(VAT) on various goods in Punjab. I have made every effort to provide the schedules with latest amendments but as we know the rates of goods are changed by Govt from time to time, hence the list of goods and rate of tax on goods mentioned in the schedules should not be taken as final. I will try to update the schedules with latest amendments from time to time for the sake of my knowledge as well as that of readers of my blog. INCOME FROM HOUSE PROPERTY UNDER INCOME TAX ACT 19610 commentsWHAT IS HOUSE PROPERTY? The Income Tax Act classifies 'buildings and/or land appurtenant* thereto as *House Property'. Income derived from vacant plots of land is not charged under this head but under the head Income from other sources' or *business profits'.
The tax under this head is levied upon the owner, legal or beneficial and not upon the occupant. In case the assessee is not the owner but gets rent from sub-letting a property, the income will not be taxed as income from house property, but as income from other sources. Ownership will also include deemed ownership, i.e. persons who purchase properties on Power-of-Attorney basis or under long-term lease (twenty year or more) are also deemed to be owners. Sachin Tendulkar allowed deduction u/s 80RR on advertisement Income as an actor1 comments Tuesday, May 24, 2011MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modelling in advertisements. The two-member tribunal, which gave its order on May 20, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials. No penalty u/s 271B if assessee is under bonafide belief that his turnover doesnot exceed audit limit-Delhi ITAT0 commentsDelhi ITAT in a case namely Saurabh Kumar Agarwal Vs. Income tax Officer (2011) ISI C-184 Del. (Trib.) has held that where an assessee is under a bonafide belief that his turnover doesnot exceed audit limit and therefore doesn’t get his accounts audited then it will form a reasonable cause for his failure for not obtaining the audit of his accounts u/s 44AB and hence no penalty u/s 271B can be levied. Punjab VAT- Uploading of information on bills made optional- news6 commentsThere is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference Mandatory online issuing of form 16A will force deductors to revise their TDS returns0 comments Monday, May 23, 2011CBDT by a recent circular No 3/2011 [F. NO. 275/34/2011-(IT-B), DATED 13-5-2011 has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process. Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules. Section 9(2B) of CST Act is applicable retrospectively0 commentsSection 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act. The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 Interest for non payment or delayed payment of tax under Punjab VAT Act 20051 comments Sunday, May 22, 2011Tax under any act should be deposited with the exchequer within time prescribed under such act otherwise there is generally a provision for payment of simple interest along with the tax. Section 32 of Punjab VAT Act 2005 provides for payment of simple interest along with tax due if there is non payment or delayed payment of tax under the Act. The provisions of section 32 can be discussed as follows:
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Salaried taxpayers upto 5 Lac income need not to file returns- notification to be issued in JuneTuesday, May 31, 2011As many as 85 lakh salaried tax payers with an annual income of up to Rs 5 lakh will not have to file income-tax return from now onwards, a finance ministry official said. "No income-tax returns would be required for salaried persons earning up to Rs 5 lakh per annum. We would notify this in first week of June," outgoing Chairman of Central Board of Direct Taxes Sudhir Chandra told reporters here. The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year). However, such tax payers would have to file return if they want to claim refunds, Chandra said. Seller not liable to pay tax or penalty, if C forms given by Purchaser found to be not genuine afterwards- Madras High CourtThe Madras High Court in an important judgement delivered in case of M/S Sastha Enterprises Vs. Appellate Authority, Commissioner(CT) II (FAC) [VSTI 2011 MAD B-165] has held that selling dealers cannot be held for higher tax liability and consequential penal action for false declaration of the documents produced on the side of Buyer. In this case the seller was held liable in reopened assessment case, to pay tax by rejecting in transit sales on the ground that the C form obtained from the purchaser was found to be not genuine as the same was not issued by the concerned Assessing Authority. Hon’ble High Court in this case held that unless and otherwise it is, based on concrete material, found out that the transaction is not true or the petitioner-seller is the party to the act of fraud said to be committed by the purchaser, the question of disallowing the exemption already given to the petitioner for the transaction actually effected between the parties, does not at all arise. No penalty u/s 271(1)(c) for faliure to disallow u/s 14A unless malafide is proved- Delhi ITATMonday, May 30, 2011I have found the order of Delhi ITAT in the case namely DCIT Vs Nalwa Investments Ltd. very important one wherein it has been held that mere faliure to disallow expenses u/s 14A will not amount to levy of penalty u/s 271(1)(c) unless malafide is proved. In this case even the auditors did not suggest disallowance u/s 14A in respect of expenses relating to tax free income. Hence no malafide intention for not attributing expenses to tax free income was proved consequently no penalty u/s 271(1)(c) could be levied. Exemption from long term capital gain u/s 54F of Income Tax Act 1961.If you have sold a long term capital asset other than residential house you can save the tax payable on the long term capital gain arising from such sale by investing the sale proceeds into a residential house u/s 54F of Income Tax Act 1961. Here below the provisions of section 54F have been discussed. Exemption is available to Individual and HUF: Exemption u/s 54F is available only to an Individual and HUF assesses. Therefore if a firm or company etc (i.e other than individual and HUF assesses) have any long term capital gain, no exemption u/s 54F will be available to them. Four points essential to escape murder conviction-Supreme CourtAn accused can escape conviction for murder if he proves that there was no premeditation for the act, occurred in a heat of passion, no cruelty involved and undue advantage taken, the Supreme Court has ruled. A bench of justices Asok Kumar Ganguly and Deepak Verma in a judgement said that the accused can seek immunity from murder only if all these four above circumstances are established in defence of the crime. "In order to bring a case under Exception (4) to Section 300 IPC, the evidence must show that the accused acted without any premeditation and in a heat of passion and without having taken undue advantage and he had not acted in a cruel or unusual manner. Why petrol prices are highest in Punjab?Sunday, May 29, 2011Petrol prices in Punjab are highest in In Punjab VAT on Petrol is charged @ 27.5 per cent and surcharge on the VAT is 10 per cent which makes total VAT on petrol @ 30.25 per cent. Deductions available under Section 80C of Income Tax Act, 1961Every Taxpayer is entitled to reduce his tax liability by taking benefits of various deductions available under the Income Tax Act. Therefore one should plan his investment and make decision in such manner that, he may get benefit of deductions u/s 80C to 80U. Section 80C of Income tax Act is an important section wherein investment in certain saving plans and some other expenditures are allowed as deduction to the taxpayer from his total income thereby saving his taxes. The computation of expacted total income and tax thereon should be made right at the beginning of new financial year and should be reviewed in the later part of the financial year. The Finance Act, 2005 has withdrawn the rebate u/s 88 and in its place re-inserted section 80C for deduction in respect of contribution to PF, LIC premiums, investment in NSC, infrastructure bonds etc, w.e.f A.Y 2006-07. Input Tax Credit on Capital Goods under Punjab VAT Act, 2005.Saturday, May 28, 2011
I have received a querry relating to admissibility of ITC on capital goods. I have replied to it and considering the matter of concern for dealers at large in
Question: Dear Mr Bajaj, As per our telephonic talk today I am submitting my query to you for your comments : Scope of Rule 114B regarding furnishing of PAN in certain transactions extendedAs per the new amendment in rule 114B of Income Tax Rules, now PAN will also have to be furnished in respect of payment of LIC premium of aggregating Rs. 50000 or more in a year. PAN will also be required to be furnished while making payment to a dealer of Rs. 5 Lakh or more or against a bill of Rs 5 Lakh or more for purchase of bullion or jewellery. The word Dealer has been mentioned in newly added clause (r) to Rule 114B, but who will be considered as dealer is a question to be asked, since no corresponding explanation defining the word dealer has been added in the rule. Instructions for filing Sehaj Form (ITR 1) for A.Y 2011-12Friday, May 27, 2011Instructions for filing Sehaj form have been notified. Not only a layman but also every professional must go through these instructions before filing the form as many new things may come to picture which we might not be aware of. Survey party will provide the taxpayer, names, designation & contact details of CCIT, ACIT/JCIT before starting survey-CBDTCBDT has issued some instructions for bringing transparency in the Survey Operations carried under Income Tax Act 1961. As per the instructions now the survey party will inform the taxpayer on whom survey operations are carried on, before the start of survey proceedings the name designation and contact numbers of the CCIT &Additional CIT/JCIT and also will inform the taxpayer that if he has any grivence he can contact the said authorities. The instructions as issued are produced herebelow for ready reference. Tax paid by contractee on goods supplied to contractor, is allowable as ITC to such contractorThursday, May 26, 2011The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor. Rates of Tax on various Goods under Punjab VAT Act 2005Wednesday, May 25, 2011I am sharing hereby various schedules under Punjab VAT Act 2005 prescribing rates of tax(VAT) on various goods in Punjab. I have made every effort to provide the schedules with latest amendments but as we know the rates of goods are changed by Govt from time to time, hence the list of goods and rate of tax on goods mentioned in the schedules should not be taken as final. I will try to update the schedules with latest amendments from time to time for the sake of my knowledge as well as that of readers of my blog. INCOME FROM HOUSE PROPERTY UNDER INCOME TAX ACT 1961WHAT IS HOUSE PROPERTY? The Income Tax Act classifies 'buildings and/or land appurtenant* thereto as *House Property'. Income derived from vacant plots of land is not charged under this head but under the head Income from other sources' or *business profits'.
The tax under this head is levied upon the owner, legal or beneficial and not upon the occupant. In case the assessee is not the owner but gets rent from sub-letting a property, the income will not be taxed as income from house property, but as income from other sources. Ownership will also include deemed ownership, i.e. persons who purchase properties on Power-of-Attorney basis or under long-term lease (twenty year or more) are also deemed to be owners. Sachin Tendulkar allowed deduction u/s 80RR on advertisement Income as an actorTuesday, May 24, 2011MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modelling in advertisements. The two-member tribunal, which gave its order on May 20, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials. No penalty u/s 271B if assessee is under bonafide belief that his turnover doesnot exceed audit limit-Delhi ITATDelhi ITAT in a case namely Saurabh Kumar Agarwal Vs. Income tax Officer (2011) ISI C-184 Del. (Trib.) has held that where an assessee is under a bonafide belief that his turnover doesnot exceed audit limit and therefore doesn’t get his accounts audited then it will form a reasonable cause for his failure for not obtaining the audit of his accounts u/s 44AB and hence no penalty u/s 271B can be levied. Punjab VAT- Uploading of information on bills made optional- newsThere is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference Mandatory online issuing of form 16A will force deductors to revise their TDS returnsMonday, May 23, 2011CBDT by a recent circular No 3/2011 [F. NO. 275/34/2011-(IT-B), DATED 13-5-2011 has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process. Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules. Section 9(2B) of CST Act is applicable retrospectivelySection 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act. The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 Interest for non payment or delayed payment of tax under Punjab VAT Act 2005Sunday, May 22, 2011Tax under any act should be deposited with the exchequer within time prescribed under such act otherwise there is generally a provision for payment of simple interest along with the tax. Section 32 of Punjab VAT Act 2005 provides for payment of simple interest along with tax due if there is non payment or delayed payment of tax under the Act. The provisions of section 32 can be discussed as follows:
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