FSIA E-circular
dt Friday, July 22, 2011
Rajive Chawla
President, FSIA / /
Sangeet Kr Gupta
Hon. Consultant, FSIA
TDS Certificates
To be online only, from Govt website
Private TDS Certificates Banned*
*For Corporates
Corporates and banks mandated to issue Form 16A downloaded from TIN central system
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We are all used to giving and receiving TDS certificates in paper format. And further, these certificates are made from the E-TDS softwares that we use, example Webtel, Taxmann, Taxpro, and so on. Some of us, make them directly in Excel / Word.
Now, no more.
CBDT has issued a Circular No. 03/2011 dated May 13, 2011as per which TDS Certificates in Form No. 16A will be generated from Tax Information Network (TIN). It is mandatory for Companies and Banks to issue Form 16A from TIN to their deductees for deductions made from April 1, 2011 (F.Y. 2011-12 onwards). Taxpayers are advised to insist on Form 16A (quarterly TDS certificate) that has been downloaded by the Deductors from TIN Central System only.
See the file attached for details.
Source : http://www.incometaxindia.gov.in/archive/BreakingNews_Form16AMandatory_06272011.pdf
Reason = it will show you (a) in correct format , (b) Correct information, (c.) “Matched” status of Challans, (d) whether TDS actually paid to Govt or not , (e) TDS return filed or not,
Benefit = if you use this, then there will be no problem of Income Tax TDS “not allowed”, later on.
Exemption from filing I-T return for persons with income up to Rs 5 lakh
*For small salaried Individuals
The Central Board of Direct Taxes has notified the scheme exempting salaried taxpayers with total income up to Rs.5 lakh from filing income tax return for assessment year 2011-12, which will be due on July 31, 2011.
Yes, this notification has been released.
Yes it is available for FY 10-11 ( AY 11-12)
But, Conditions are :
Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account up to Rs.10,000 are not required to file their income tax return.
Note – You will not be exempted from income tax. But, Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No.16.
FAQ = who will not be covered ?
1. Persons receiving salary from more than one employer, - not covered
2. Having income from sources other than salary – not covered
3. Having interest income from a savings bank account x>10,000– not covered
4. Having income from FDR / NSC / RD / bonds – not covered
5. Having income tax refund claims - shall not be covered under the scheme.
6. The scheme shall also not be applicable in cases wherein notices are issued for filing, the income tax return under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act 1961.
7. Having short term capital gains on shares = not covered
So, logical Question was
Who is covered ?
“Small plain salary payer” with not much other income
And all that income is declared to the employer
And full tax paid on that
Source : http://www.incometaxindia.gov.in/archive/PressRelease_ExemptEfilingSalaryPerson_06232011.pdf
No.402/92/2006-MC (14 of 2011) CBDT, Government of India / Ministry of Finance
New
New Income Tax form : Sugam
*For small Businessmen (presumptive)
http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/Ay2011-12/SUGAM2011ARRANGED.pdf
New things in this “SUGAM” form is that
1. Size: 3 pg instead of 40 pg The normal Form ITR 4 for business assessee’s carried around 40 pages of information (approx 1500 cells to be filled up). Now the new Sugam form is a small 3 page Form. This is for the “presumptive tax assessee’s only”.
2. Will be scanned in the Central Processing Cells,
a. Colored ( Black and White print is not allowed )
b. Simple form
c. Are Bar Coded
d. Have OCR – Optical Character Readability
See the page 2 of this Sugam Form
See the above screenshot,
And this is the single row about your P & L Account
Nothing else
note that these 4 rows are the only rows about your balance sheet. Nothing else
Can things be made more simple ???
Next news
New Income Tax form : “Sahaj”
*For Salary / One house property income
New Form released
Just 2 page form
Scanning-friendly
Based on International standards ( very similar to one being used in USA )
Very very simple
You have to fill just 3 rows about your income, That is all.
Have a look at the Income tax Form 1040A, prescribed for “individual” persons in USA
See the USA individual return
It is much more complex
However, still very similar to that in India
Any guess ?. . . .Which one is based on which one ?
Income Tax ReturnsLast Date for Filing of Income Tax returns for individuals and non audit cases is 31.7.2011 ( this month end)
So, if not yet filed
Prepare your papers immediately
And contact your friendly CA/Advocate soon. /
Quick summary of Rates for I Tax returns being filed for Financial year 2010-11
Basic Rates / RateUpto Rs. 1,60,000 / Nil
Rs. 1.60 lac - Rs.5.00 lac / 10%
Rs. 5.00 lac - Rs.8.00 lac / 20%
Rs. 8.00 lac onwards / 30%
Surcharge
Those with taxable income upto Rs. 10 lakh / Nil
Those with taxable income above Rs. 10 lakh / Nil
Education Cess , & SHE cess ( continues) / 3% for all.
a. Basic exemption limit (till which, you do not have to pay any tax). This remains the same.
a. For normal people : Rs. 1,60,000
b. For women hiked to Rs 1,90,000
c. For Senior Citizens = Rs. 2,40,000
For queries, suggestions and feedback , you can e-mail us at :
Sangeet Kumar GuptaFCA, ICWA, PGDMM, B.Com(Hons)
Honorary Consultant,
Faridabad Small Industries Association
93126-08426
Camp Off : SCF no 70, Sector-16A Market, Faridabad
FSIA Off: FSIA Park, Opp. Plot No.23, Sector- 24,Faridabad- 121005 /
For queries, suggestions and feedback , you can e-mail us at : FSIA office / Sangeet Gupta
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Notes & disclaimer
For private circulation. Intended for recipient only. This is only for personal information of the members. Based on information & interpretations available as on Friday, July 22, 2011 4:23:52 PM. Please contact your Consultant / Chartered Accountant / counsel for his final opinion, if deemed fit.
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