TAXE >>

March Forward >>>

sanjaykadel — Sat, 20 Feb 2010 22:08:29 +0000

February is the month to remind you that March is next! and March is to remind you that nothing is left!

In the context of Income Tax planning for the Financial Year 2009-10, February and March are the last chances to do your bit to save the tax bite!

Most of the Salaried Employees would have received the Investment Declaration forms to be filled and submitted. Others who do not get this kind of reminder, better beware now!

Certain Do’s:

Do invest to the maximum of Rs.1,00,000/- under section 80C. Please exhaust the limit in your best interest. By this you make certain savings for yourself and also save tax also…. which means double thrift.
Do also check out the precautions to take… (Caution Note to 80C Deductions)
Do pay your mediclaim premiums also within march… to claim u/s 80D of Income Tax Act
For those in business — If you are planning to buy certain vehicles or fixed assets, feb and march are the best months to buy. Why? Because using the asset for one or two months before march end, will get you depreciation for whole 6 months!!!
For those in business — If you are liable to deduct and remit tax at source (TDS) then better deduct and remit all the TDS relating to the period from April to February within 31st March. OR ELSE, the expenditure amount subject to TDS will be disallowed. Also do not forget PF/ESI dues… becuase they also warrant disallowances due to delay in payment.

Do Check out the Budget for next Financial Year which will be announced in Feb end.

Do consult your tax doctor i.e. your Tax consultant or your Chartered Accountant.

Certain Dont’s:

Do not submit fake rent receipts or rental agreements for getting HRA exemptions, Do not submit fake medical bills for getting medical reimbursement exemption

Don’t Invest for the sake of Tax Savings — Check out your liquidity requirements and THEN ONLY should you save for tax purposes. Remember: Savings, Investment and Business should be guided on merits and not dictated by Tax Laws.

Don’t fall prey to Mutual Funds which claim as though they are tax planners and Investment managers for you. They silently add the danger disclaimer that “MUTUAL FUNDS ARE SUBJECT TO MARKET RISKS”. You know the market right! In-fact no-one knows the market. One day it touches sky, another day it sinks deep into the sea. What happens in the midst of this is that you are no-where!!!

Do not consult your friends and colleagues for tax-planning. Consult only your tax consultant or chartered accountant. Remember: Crocin is neither for ‘all fevers’ nor for ‘all patients’.

There may be others to add to the list of dos and donts. I’ll do it whenever those strike me. You may also comment if something can be added.

- TAXE

Income Tax Rules Amendments – TDS Related

sanjaykadel — Sat, 18 Apr 2009 11:57:12 +0000

Certain amendments have been made by the Income Tax Department in relation to TDS related compliances. The Notification No. S.O.858(E) on TDS dated 25th March 2009 has been issued.

My personal analysis on the notification and summary of the amendments are given below in the most crisp manner possible!!!! Hope its useful!

Remittance:

* No change in TDS remittance due date
* The person responsible for making deduction, or payment of tax, under Chapter XVII-B shall, within the time specified in sub-rule (1), or sub-rule (2), -
(a) electronically furnish income-tax challan in Form No.17; and
(b) pay the amount by electronically remitting.

Certificates

Form No.	Description	Mode of Submission	Due Date
F16	Cert. Salary TDS	Physical	30 Apr following the end of FY
F16A	Cert. Non-Salary TDS	Physical	30 Apr following the end of FY
F27D	Cert. TCS	Physical	30 Apr following the end of FY

Challan

Form No.	Description	Mode of Submission	Due Date
F17	Challan	Electronic	within 1 week from end of the month, For 31 March within 31 May

Returns

Form No.	Description	Mode of Submission	Due Date
F24C	TDS Compliance Statement	Electronic	Q1-15Jul Q2-15Oct Q3-15Jan Q4-15Jun
F24Q	Return Salary TDS	Electronic	15 June following the end of FY
F26Q	Return Non-Salary TDS	Electronic	15 June following the end of FY
F27Q	Return Non-Residents	Electronic	15 June following the end of FY
F27EQ	TCS Return	Electronic	15 June following the end of FY

A query to be solved!

sanjaykadel — Tue, 18 Nov 2008 13:41:15 +0000

TDS on professional fees

1. Facts of the Case:

Company:

Company follows mercantile basis.
Company creates a provision for audit fees for Rs.40,000/- for ‘FY 05-06’
Company deducts TDS on above amount @ 10.3% = Rs.4120/- and remits to govt.
Company issues TDS certificate to Auditor for the above TDS stating ‘FY 05-06’

CA Firm:

Firm may follow mercantile basis or cash basis.
Whatever it follows, Firm will raise the bill in ‘FY 06-07’ only and probably receive money in ‘FY 06-07’ only. So, income accounted in ‘FY 06-07’
Firm will have to claim the TDS. But Certificate mentions ‘FY 05-06’. It can claim TDS certificate in ‘FY 06-07’ because TDS relates to the income which is accounted and offered as income, in ‘FY 06-07’.

2. Queries in the above Case:

Company:

Whether Company should show as Provision for Audit Fees under provisions or Outstanding Expenses under Current Liabilities?
If it is just a provision, should the company deduct TDS (because TDS should be deductible at the time of credit to the party or payment to the party whichever is earlier)?
When should the company deduct TDS? In the TDS certificate what Financial Year should be mentioned?
What happens, if auditor bill is different and provision for audit fee amount is different?

CA Firm:

When should firm account the fees?
When should TDS be claimed?

The query above relates to conceptual issues like provisions vs. liability, tds credit, accrual vs. matching concept….. The above is a food for thought and there is no proper consensus among the professionals. If you give your feedback the same may be beneficial for the public at large and the professionals at large. Your feedbacks are invited!

SMS based service for PAN & TAN Application status

sanjaykadel — Fri, 18 Apr 2008 06:36:13 +0000

National Securities Depository Limited (NSDL) processes PAN and TAN applications on behalf of Income Tax Department. With a view to keep the applicant updated about the status of his application, NSDL has launched a Short Message Service (SMS) based facility.

The applicant can send an SMS to 53030 with a message containing the word PAN followed by a space and the 15-digit acknowledgement number provided at the time of submission of application i.e., PAN ACKNOWLEDGEMENT NUMBER (e.g., PAN 123456789012345 – this is an illustrative acknowledgement number. Actual acknowledgement number should be provided in the SMS).

Similarly, to know the status of TAN application, applicant can send the SMS to 53030 with a message containing the word TAN followed by a space and the 14-digits acknowledgement number provided at the time of submission of application i.e., TAN ACKNOWLEDGEMENT NUMBER (e.g., TAN 12345678901234 – this is an illustrative acknowledgement number. Actual acknowledgement number should beprovided in the SMS).

There will be special charges for these SMS. These charges may vary from one mobile service-provider to another. The charge structure can be obtained from the concerned service-provider. The status of the PAN/TAN applications will continue to be available from NSDL-TIN web-site www.tin-nsdl.com or NSDL Call Centre at 022- 24994650 or Aykar Sampark Kendra at 0124- 2438000.