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Monthly Archives: December 2012

How and when TDS can be avoided…

Even though many of us are familiar with tax filing, the process of TDS deduction is still confusing for many. When and where TDS is applicable, what are the procedures to reduce it and how to claim the deducted amount at the time of filing tax returns are few of the queries we have. So, here we discuss TDS deductions with a focus on how and when it can be reduced to help you in everyday life.

Understanding TDS:

The Indian tax structure is broadly a two dimensional approach towards payment of tax liabilities. In the first method- self assessment, taxes can be paid voluntarily after evaluation of income during a financial year. In the second method, Tax Deductions at Source or TDS, as the name suggests, is the spot deduction of tax from the income source itself, at the time of earning. This is to simplify the taxation procedure for the government and to ensure that the payment making and receiving individual / company is accounting the same without fail.

TDS is applicable for earnings from several financial instruments and business transactions like sale of property, interest income from banks, commissions and incentives, payment received for contracts and services, vendors, dividends and awards or prices earned as money.

There is no uniform rate for TDS deduction. Depending on the source of earnings, it can range from 1% for sale proceeds to 30%.

From Salary and Commissions

It is mandatory as per Indian Income Tax rules that companies as well as working professionals who earn above the aforementioned figure should deduct tax at source from the payments they make.

Employers normally will ask employees to fill an investment declaration form. If you have done an early homework to save your TDS deduction by investing in several tax saving instruments under Sections 80C, 80D, or planning to do within that financial year, do declare the details in the form with required proofs to save TDS. If despite all your investments, your salary is still above the exemption limit, TDS will be deducted monthly. The employer will issue a TDS certificate (also referred as Form No.16 (a)) at the end of the financial year which can be produced while filing income tax return to get the credit of the TDS (if applicable) during the personal income tax assessment.

TDS is applicable for payments including commissions, service fees, professional fees and payment via contracts. Here the TDS certificate issued will be Form 16 B which like Form 16 A, can be produced while filing income tax return to get reversed if applicable.

TDS from Property, Awards and Incentives:

TDS is applicable in case of earnings sale of property, rental / lease income, cash prizes, lottery winnings etc. The amount of deduction may vary from 1% in case of sale proceeds to nearly 30% in case of cash awards.

Individuals seeking TDS refund in the above mentioned situations can submit form 15G/H which is a self deceleration that your income is below taxable limit.

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‘Frieght Beneficiary’ not to be assessed u/s 172 provisions

Where freight beneficiary was not engaged in occasional, but in regular shipping business and its Indian agent was regularly filing return of income, it would be outside scope of section 172; it would rather liable to be assessed on basis of return filed under section 139(1) for its entire income

In the instant case, the respondent-company, acting as an agent of the freight beneficiary, filed voyage returns in respect of certain voyages before the AO. Instead of passing separate orders for each of the voyage return, the AO passed a composite order under section 172(4), disposing of all the voyage returns and worked out the taxable income of respondent at 7.5% of total amount of freight. But the respondent on the other hand contended that the procedure outlined in section 172(4) was not applicable to it as it had already filed its return of income under section 139(1) before the expiry of the assessment year under appeal and, therefore, it ought to have been assessed under the normal provisions of the Income Tax Act in view of the provisions of section 172(7). Further, the CIT(A) quashed the order passed by the AO under section 172(4).

On appeal, the Tribunal held in favour of assessee as under:

1) The summary procedure of assessment contemplated by section 172 cannot be mixed up with a regular assessment, especially when option is exercised by the owner or charterer of the ship under section 172(7);

2) There can’t be multiple assessments of profits from the same voyages, i.e., one under section 172(4) and the other under the normal provisions of the Income-tax Act on the basis of the return filed under section 139; and

3) As the respondent had been regularly filing its returns of income and was assessed to tax, the finding of the CIT(A) that the freight beneficiary would be outside the scope of section 172 couldn’t be said to be untenable. Thus, the CIT(A)’s finding in this behalf was confirmed – ITO, INTERNATIONAL TAXATION v. MARINE CONTAINERS SERVICES (INDIA) (P.) LTD [2012] 28 (Rajkot – Trib.)

All India level Elocution and Quiz Contests by ICAI

12th All India Quiz Contest and 18th All India Elocution Contest, 2012-13

The Board of Studies of the Institute is organizing the 12th All India Quiz Contest and 18th All India Elocution Contest on 2nd February, 2013 as per the following details:-

Venue:
The Institute of Chartered Accountants of India,
“ICAI Bhawan”
27, Cuffe Parade, Colaba,
Mumbai-400 005.

Time:
Quiz Contest – 9.30 a.m. to 1 p.m.
Elocution Contest – 1.30 p.m. to 6 p.m.

The participants to the Contests would be the winners of the Regional Level Contests held earlier by the respective Regions. Students from Mumbai and nearby places as also students who happen to be in Mumbai on that day, are requested to join the programme and encourage the Contestants.

Director,
Board of Studies

Integrated Professional Competence Examination (IPCE) Renamed as Intermediate Examination (IPC)

26th December 2012

In terms of Notification NO XCA(7)/145/2012 dated 1st August 2012, “Integrated Professional Competence Examination(IPCE)”, stands renamed as “Intermediate (IPC) Examination” and would be known accordingly, with effect from May 2013 examination onwards.

For detailed Notification, visit http://www.icai.org

Exam Department.

Exemption from CS Foundation programme for ICAI and ICoAI students

It is to inform that students who have passed Foundation
Examination of The Institute of Cost Accountants of India ( ICoAI ) / or
students who have passed Common Proficiency Test ( CPT) of The Institute
of Chartered Accountants of India ( ICAI ) are eligible to take direct
registration in CS Executive Program. ( Earlier only Final Passed students of
ICoAI / or ICAI were eligible to take direct registration in CS Executive
Program.)
Rs 7000/- shall be charged from them for admission in CS Executive
Program. ( fees as applicable to commerce graduate ).
Refer: http://www.icsi.edu/webmodules/student/AdmsCPTFProg.pdf

Notification for CA Examinations May 2013

NOTIFICATION 19th December, 2012
No. 13-CA (EXAM)/M/2013: In pursuance of Regulation 22 of the Chartered Accountants
Regulations, 1988, the Council of the Institute of Chartered Accountants of India is pleased to notify that
the Intermediate (Integrated Professional Competence) and Final examinations will be held from 2.00 PM
to 5.00 PM) (IST) on each day on the dates given below at the following centres provided that sufficient
number of candidates offer themselves to appear from each centre.

INTERMEDIATE (INTEGRATED PROFESSIONAL COMPETENCE) EXAMINATION
[As per syllabus contained in the scheme notified by the Council under Regulation 28 E (3) of the
Chartered Accountants Regulations, 1988]
Group-I: 3rd, 5th, 7th & 9th May 2013
Group-II: 11th, 13th & 15th May 2013
FINAL EXAMINATION
[As per syllabus contained in the scheme notified by the Council under Regulation 31 (ii) of the
Chartered Accountants Regulations, 1988.]
Group -I: 2nd, 4th, 6th & 8th May 2013
Group -II: 10th, 12th, 14th & 16th May 2013

Payment of fees for the examinations should be made by Demand Draft only. The Demand Draft
may be of any Scheduled Bank and should be drawn in favour of The Secretary, The Institute of
Chartered Accountants of India, payable at New Delhi only.

Applications for admission to these examinations are required to be made either online at
http://icaiexam.icai.org free of cost {i.e. Rs. 500/- for Intermediate (Integrated Professional
Competence) & Final candidates for the cost of application form shall not be charged if
applications are filled in online} or in the relevant prescribed form, copies of which may be obtained
from the Additional Secretary (Examinations), The Institute of Chartered Accountants of India,
‘ICAI BHAWAN’, Indraprastha Marg, New Delhi – 110 002 on payment of Rs. 500/- per application form
in respect of Intermediate (Integrated Professional Competence) and Final Examination candidates. The
cost of Examination application form for Insurance and Risk Management (IRM) examination is Rs. 100/-
per application form. The forms shall also be made available in the Regional and Branch Offices of the
Institute and can be obtained there from on cash payment on or from 6th February, 2013.
Applications together with the prescribed fee by Demand Draft of any Scheduled Bank may be
sent so as to reach the Additional Secretary (Examinations) at New Delhi not later than 27th February,
2013. However, applications will also be received direct by Delhi Office after 27th February, 2013 and
upto 6th March, 2013 with late fee of Rs. 500/-. Applications received after 6th March, 2013 shall
not be entertained under any circumstances. Applications for the students’ examinations only duly filled
in will also be received by hand delivery at the office of Institute at New Delhi and at the Decentralised
Offices of the Institute at Mumbai, Chennai, Kolkata, Kanpur, Delhi, Ahmedabad, Bangalore, Hyderabad,
Jaipur and Pune upto 6th March, 2013. Candidates residing in these cities are advised to take
advantage of this facility.

The candidates who fill up the examination application form online at
http://icaiexam.icai.org from 6th February, 2013 to 27th February, 2013 and remit the fee
online by using either VISA or MASTER Credit/ Debit Card shall not be charged Rs.500/- in
case of Intermediate (Integrated Professional Competence) AND Final Examinations (i.e. cost
of application form fee) in order to popularize filling-in of application form online. The
candidates of Intermediate (Integrated Professional Competence) and Final Examinations can
continue to fill in application forms online from 28th February, 2013 to 6th March, 2013 (during
which period late fee of Rs. 500 will have to be paid by them as well).
The fees payable for the various examinations are as under:
INTERMEDIATE
(INTEGRATED PROFESSIONAL COMPETENCE) EXAMINATION
For Both the Groups and Unit – 9 Rs. 1600/-
For one of the Groups and Unit 1 to 8 Rs. 1000/-
Overseas Centres US $ 350
Kathmandu (Nepal) Centre INR 2250/-
FINAL EXAMINATION
For Both the Groups Rs. 2250/-
For one of the Groups Rs. 1250/-
Overseas Centres US $ 400
Kathmandu (Nepal) Centre INR 3000/-

OPTION TO ANSWER PAPERS IN HINDI:
Candidates of Intermediate (Integrated Professional Competence) and Final Examinations will be
allowed to opt for Hindi medium for answering papers. Detailed information will be found printed in the
notes for information and guidance of applicants attached to the relevant application form. However the
medium of Examination will be only English in respect of Insurance and Risk Management (IRM)
Examination.
(G. SOMASEKHAR)
ADDITIONAL SECRETARY (EXAMS)

Instant Resolve…!!

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A New Feature of Our Blog is….

Send your queries subject related or general queries  here

New type of Saving Bank Account by ICICI All Online……!!!

What is B2

b2 is the next step in the evolution of banking(Digital Banking). It’s a savings account, where everything is done online.
As everything is available online, we have trimmed
services you rarely use and compensated you with
a few additional features

b2b

B2 Features:

  • •  Higher earnings with quantum optima
    •  Zero minimum balance requirement
    •  Zero charges
    •  Virtual prepaid card
  • .  No ATM/ debit card
    •  No cheque book
    •  Only limited branch acces
  • No hidden charges/zero charges
  • 8 % Interest rate
  • No premature penalty
  • Online transfer of Balance
  • virtual e wallet for online payments
  • No minimum balance requirement.
  • 24X7 banking
  • Pre approved Loan without any documentation
  • Online credit card
  • Online draft request and free delivery any where in India
  • Online RD and FDR account
  • Free bills payment
  • Mobile recharge facility
  • Online help line service

To Know more visit http://www.b2.icicibank.com

So when was the last time you visited your bank’s branch? A month ago – 2 months maybe even 3 months ago? Why haven’t you walked in to a branch? Simple – you didn’t need to.

India and the world as we know it is moving towards a new paradigm where users demand world class service – as and when they want it.

If you identify with this philosophy then welcome to the world of b2 digital banking. Welcome to b2!

When ATMs were introduced, we thought that why do we need ATMs when we have good old branches? Today, using ATMs is a globally accepted practice with millions of transactions taking place everyday. Then came Phone Banking which gave users opportunities to query their bank anytime of the day or night. Internet Banking and Mobile Banking allowed customers access on-the-move. These are all commoditized, value-added facilities that 99% of Banks offer their customers.

b2 is the next step in the evolution of banking. It’s a bank, where everything is done online and since you don’t need branches, we don’t offer them. you can enjoy all the conveniences of banking at your finger tips and your money grows faster. b2 understands that today’s banking is not just about payments and transfers. Hence along with these it offers other benefits like bill payments and mobile recharge..

What are soiled/imperfect notes and their use…

soiiled

What are soiled, mutilated and imperfect banknotes?
(i) “soiled note:” means a note which, has become dirty due to usage and also includes a two piece note pasted together wherein both the pieces presented belong to the same note, and form the entire note.
(ii) Mutilated banknote is a banknote, of which a portion is missing or which is composed of more than two pieces.
(iii) Imperfect banknote means any banknote, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated banknote.
Can soiled and mutilated banknotes be exchanged for value?
Yes. Such banknotes can be exchanged for value.
Where are soiled/mutilated banknotes accepted for exchange?
All banks are authorized to accept soiled banknotes for full value. They are expected to extend the facility of exchange of soiled notes even to non-customers. All currency chest branches of commercial banks are authorised to adjudicate mutilated banknotes and pay value for these, in terms of the Reserve Bank of India (Note Refund) Rules, 2009
How much value would one get in exchange of soiled banknotes?
Soiled banknotes are exchanged for full value.
How much value would one get in exchange of mutilated banknotes?
A mutilated banknote can be exchanged for full value if,
(i) For denominations of Re. 1, Rs. 2, Rs. 5, Rs. 10 and Rs. 20, the area of the single largest undivided piece of the note presented is more than 50 percent of the area of respective denomination, rounded off to the next complete square centimeter.
(ii) For denominations of Rs. 50, Rs.100, Rs. 500 and Rs. 1000, the area of the single largest undivided piece of the note presented is more than 65 percent of the area of respective denomination, rounded off to the next complete square centimetre.
Banknotes in denominations of Re. 1, Rs. 2, Rs. 5, Rs. 10 and Rs. 20, cannot be exchanged for half value.
A mutilated banknote in denominations of Rs.50, Rs.100, Rs.500 or Rs.1000, can be exchanged for half value if,The undivided area of the single largest piece of the note presented is equal to or more than 40 percent and less than or equal to 65 percent of the area of respective denomination, rounded off to the next complete square centimetre.
How much value would one get in exchange of imperfect banknotes?
The value of an imperfect note may be paid for full value / half value under rules as specified for mutilated notes if,
(i) the matter, which is printed on the note has not become totally illegible, and
(ii) it can be satisfied that it is a genuine note.
What types of banknotes are not eligible for payment under the Note Refund Rules?
The following banknotes are not payable under the Reserve Bank of India (Note Refund) Rules 2009.
A banknote for which:
  • the area of single largest undivided piece of note presented is less than or equal to 50% of area of the note for denominations of Re. 1, Rs. 2, Rs. 5, Rs. 10 and Rs. 20.
  • the area of the single largest undivided piece of the note is less than 40 percent for denominations of Rs.50, Rs. 100, Rs. 500 and Rs. 1000.
A banknote which:
  • cannot be identified with certainty as a genuine note for which the Bank is liable under the Act,has been made imperfect or mutilated, thereby causing the note to appear to be of a higher denomination, or has been deliberately cut, torn, defaced, altered or dealt with in any other manner, not necessarily by the claimants, enabling the use of the same for making of a false claim under these rules or otherwise to defraud the Bank or the public,\
  • carries any extrinsic words or visible representations intended to convey or capable of conveying any message of a political or religious character or furthering the interest of any person or entity,
  • has been imported into India by the claimant from any place outside India in contravention of the provision of any law.
What if a banknote is found to be non-payable?
Non-payable banknotes are retained by the receiving banks and sent to the Reserve Bank where they are destroyed.

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