Deduction in respect of House Rent Allowance under Income-tax

Deduction in respect of House Rent Allowance under Income-tax [Sec10(13A)]
Deduction in respect of House Rent Allowance (HRA) is allowed to employees for HRA granted to them by their employers to meet expenditure incurred on payment of rent in respect of residential accommodation occupied by the assessee, to the extend calculated in rule 2A.

Under rule 2A the amount which shall be excluded for the total income shall be the least of the following:

1. The amount actually received by the assessee in the relevant period,
2. The amount of rent paid in excess of 10% of the salary,
3. in case the accommodation is situated in Bombay, Calcutta, Delhi and Madras, 50% of the salary and 40% of the salary in other places.

Thus if rent paid is less then 10% of salary no HRA deduction will be available. Salary means basic salary and dearness allowances. The employee must not own a house in place where he has rented accommodation.

example: Mr. Amit is residing in Pune. His Basic Salary and DA is Rs. 1,00,000/- p.a. He stays in rented home and pays rent Rs.4,500/- p.m. He gets HRA of Rs.1,000/- p.m. form his employer. HRA allowable will be least of i) Rs12,000/- i.e. HRA received @ Rs.1,000/- p.m. ii) Rs.44,000/-, being House Rent paid Rs.54,000/-(4500*12) in excess of 10% of Salary i.e. Rs10,000/- (Rs.1,00,000*10%), iii) 40% of salary for accommodation situated in Pune is Rs.40,000/-. So entire amount of HRA will be allowed as exemption from Total Income. If HRA received is Rs. 500/- p.m. then exemption will be nil as value calculated under condition (ii) will be nil. If HRA received is Rs.5,000/- p.m. i.e. Rs.60,000/- p.a. then exemption will be restricted to Rs.40,000/-.

Investing In Public Provident Fund in name of Minor Child and deduction u/s.80C

Under Section 80C of Income-tax Act, 1961 (IT Act) and individual and HUF can claim maximum deduction of Rs.1,00,000/- from total income by depositing sum as per provisions of the section. Sec. 80C(1)(iv) allows contribution to any provident fund set up by the Central Government and notified, where such contribution is to an account standing in the name of any person specified in sub-section (4). Thus contribution in Public Provident Fund Account (PPF Acc0unt) will be eligible for benefit u/s.80C. Under sub-sec. 4, an individual can make contribution in the name of individual, spouse or minor child of the Assessee. An HUF can make contribution in name of any of its member.

As the maximum limit u/s.80C is Rs.1,00,000/- and as per PPF rules, maximum investment in one account can not be more then Rs.70,000/-; question arises that can an individual invest Rs.70,000/- in his name and Rs.30,000/- in the name of minor child and claim full benefit u/s.80C. We have now to not that Public Provident Fund Scheme, 1968 under rule 3 states regarding limits of subscription to Public Provident Fund Account as :

Limit of subscription:- (1) Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (thereafter referred to as the fund) any amount not less than Rs. 500 and not more than Rs. 70,000 in a year.

This implies that an individual can open account in names of minor child, but the total amount invested in all accounts i.e. his account and account of all minor child, should not exceed Rs.70,000/- during the year.

Any amount in excess of total of Rs.70,000/- will not yield any interest.

Individual without the information usually deposit Rs.70,000/- in their name and Rs.70,000/- in names of their minor children. The banks usually inform the account holders making such deposits that they cannot deposit more then Rs.70,000/-. In order to avoid this situation individuals can open minors account in different bank or post office. But if this come to the knowledge it may refuse to pay interest in additional amounts, though this is a rare chance.

Note: HUF cannot open account in name of minor. PPF Scheme Rules states Non Resident Indians are not eligible to open an account under the Public Provident Fund Scheme:- Provided that if a resident who subsequently becomes Non Resident Indian during the currency of the maturity period prescribed under Public Provident during the currency of the maturity period prescribed under Public Provident Repatriation Basis. So Non Residents cannot open PPF account in name of minor child/children

Deduction in respect of loans taken for higher education. Sec 80E

Deduction in respect of interest on loan taken for higher education is available under Sec 80E of the Income-tax act. The details of the deduction are as under;

1. The deduction is available in computing the total income of the assessee,
2. The assessee must be individual only, no benefit is available to HUF or assessee of any other status,
3. The interest amount must be paid during the previous year, i.e. accounting year in relation to which return is filed, and interest must be paid out of taxable income,
4. From AY 2006-07, no deduction is available on repayment of principal amount,
5. Loan must be taken for higher education of the assessee or his relative. Higher education means full-time studies for the graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics,
6. Loan must be taken form financial institution or approved charitable institution. Financial institution means banking company or other financial institute notified by the Government. Approved charitable institution, means institution established for charitable purpose and notified by the government,
7. Loan must be taken for higher education of of the assessee or relative of assessee. Here relative means spouse and children.
8. The Deduction will be available in computation the total income in respect of the initial year and subsequent seven assessment year succeeding the initial assessment year or until the interest referred above is paid by the assessee in full, whichever is earlier.
9. "Higher education" means any course of study pursued after passing the Senior Secondary
   Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so.

Cost Inflation Index

Cost Inflation Index (CII) of various year for calculating Indexed cost
Financial Year Index
2009-10.. .. .. .. to be published shortly
2008-09.. .. .. .. 582
2007-08.. .. .. .. 551
2006-07.. .. .. .. 519
2005-06.. .. .. .. 497
2004-05.. .. .. .. 480
2003-04.. .. .. .. 463
2002-03.. .. .. .. 447
2001-02.. .. .. .. 426
2000-01.. .. .. .. 406
1999-00.. .. .. .. 389
1998-99.. .. .. .. 351
1997-98.. .. .. .. 331
1996-97.. .. .. .. 305
1995-96.. .. .. .. 281
1994-95.. .. .. .. 259
1993-94.. .. .. .. 244
1992-93.. .. .. .. 223
1991-92.. .. .. .. 199
1990-91.. .. .. .. 182
1989-90.. .. .. .. 172
1988-89.. .. .. .. 161
1987-88.. .. .. .. 150
1986-87.. .. .. .. 140
1985-86.. .. .. .. 133
1984-85.. .. .. .. 125
1983-84.. .. .. .. 116
1982-83.. .. .. .. 109
1981-82.. .. .. .. 100
Indexation formula
Indexed Cost = Indexed Cost of Acquisition + Indexed Cost of Improvement
Indexed Cost of Acquisition = Cost of Acquisition multipied by CII in year of transfer and divided by CII in year of accquisition.
Indexed Cost of Improvement = Cost of Improvement multiplied by CII in year of transfer and divided by CII in year of improvement.

on 10th September, 2009

2009-10.. .. .. .. 632

About Acknowledgement for Income-tax Return Filed Online (efiling)

Assessees who have filed their Income Tax return online(e filing ) without digital signature have to send the Form ITR-V* within 30 days from date of uploading of the Income tax return (xml File) to the Central Processing Cell (CPC) at Bangalore.
*ITR-V is generated on efiling income tax return, as acknowledgement of efiling. It contains acknowledgement number, date of efiling and other particulars of return.
Income Tax dept has issued Press release that ITR -V should be send to them through ordinary post only and speed post, registered post and courier will not be received . On receipt of ITR-V at CPC, Bangalore, the department will acknowledge receipt my sending email at the email address provided by the assessee and indicated on the ITR-V. This email contains the receipt number and date of receipt. If you have not received the email, or have given wrong email address, you can log in at e-filing portal and check at the link in e-filing site by name "e filing processing status" under My Account Menu.
It has come to my knowledge that copy of ITR-V sent to CPC Bangalore will be scanned after stamping receipt number and date of receipt and the same shall be made available to taxpayers on request through email. Please await further information on procedure for the same.

21-5-2009

CBDT has issued circular extended the time for allowing assesses filing returns electronically to send their ITR-V to CPC Bangalore. Now all assesses filing  return online can send their ITR-V within 60 days of uploading the return at efiling web-site or before 30th September, 2009 which ever is later.

The ITR-V must be send by ordinary post only.  If the asseessee receive email form CPC, Bangalore that the assessee has not send the duly signed ITR-V, then the assessee must send the ITR-V again to CPC, Bangalore.  If the assessee does not receive email of receipt of ITR-V within reasonable time, the assessee must better check efiling status by login at efiling web-site i.e. www.incometaxindiaefiling.gov.in and download the receipt. He can find the receipt in My Account Menu at "efiling processing status". The same receipt as send by CPC, Bangalore by email will be available for downloading and printing. 

20-07-2009
To assist taxpayers, a call centre service with two agents has been established by ITD-CPC, Bangalore. Taxpayer queries on status of ITR-V receipt at CPC, Bangalore will be answered on 080-43456700 between 9:30 AM to 6 PM. The service will be available in English, Hindi and Kannada. It is advised to keep PAN number and E-Acknowledgement number ready before calling to CPC, Bangalore.

1-09-2009

Many dealers in digital signature have spread rumours that ITR-V doesnot reach Banglore and there can be problem and the assessees may have to file return again; and if returns are filed again after due date the assessee may be penalised. They mainly scandalise the assessee who are covered under tax-audit. They are sending emails to this effect to Chartered Accountants and Assessees. To my experience, it is not necessary to use digital signature. I have not experienced loss of ITR-V in post. If CPC, Bangalore doesn't receive in about 10 days, they also sends reminders to assessee at their email address to send ITR-V to them by post. The new procedure of sending ITR-V is a good development for chartered accountants as they do not have to visit office of ITO in different jurisdiction. This is time saving and economical.  

CPC, Bangalore has also issued list of Dos and Dont's for printing and submitting of ITR-Vs to ITD-CPC Bangalore. I am reproducing the same here for you convince.

1. Please use Ink Jet /Laser printer to print the ITR-V Form.
2. The ITR-V Form should be printed only in black ink.
3. Do not use any other ink option to print ITR V.
4. Use of Dot Matrix printer should be avoided.
5. Ensure that print out is clear and not light print/faded copy.
6. Please do not print any water marks on ITR-V. The only permissible watermark is that of "Income tax Department" which is printed automatically on each ITR-V.
7. The document that is mailed to CPC should be signed in original.
8. Photocopy of signatures will not be accepted.
9. The signatures or any handwritten text should not be written on Bar code.
10. Bar code and numbers below barcode should be clearly visible.
11. Only A4 size white paper should be used.
12. Avoid typing anything at the back of the paper.
13. Perforated paper or any other size paper should be avoided.
14. Do not use stapler on ITR V acknowledgement.
15. In case you are submitting original and revised returns, do not print them back to back. Use two separate papers for printing ITR-Vs separately.
16. Please do not submit any annexures, covering letter, pre stamped envelopes etc. along with ITR-V.
17. The ITR-V form is required to be sent to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100, by ordinary post.
18. ITR-Vs that do not conform to the above specifications may get rejected or acknowledgement of receipt may get delayed.

17-1-2010

Ministry of Finance vide its press release today has extended the date for filing ITR-V for all returns filed electronically without digital signature after 1-4-2009. Now ITR-V must be send to Bangalore before 31st March, 2010 or within 120 days of filing the return.

The ITR-V must be send by ordinary post only.

Technorati Tags: About Acknowledgement for Income-tax Return Filed Online (efiling)

Amnesty Scheme for amnesty against penalty for late filing of VAT/CST return

Finance Minister of Maharashtra in his State Budget Speech on 4th June, 2009 announced to declare a scheme for wavier of penalty leivable for late filing of return. Dealers must file all their pending return and pay pending taxes. The scheme was brought in background of implementation of scheme of electronically filing of VAT returns.

The Scheme has been declared by the Commissioner of Sales-tax vide Circular 21 of 2009 dated 4th July, 2009. The salient features of scheme are :

1. The dealer has to file all pending returns electronically only.
2. All pending returns from 1st April 2005 to 30th June 2009 have to be filed before 31st July, 2009,
3. All taxes and interest on late payment, have to be paid before filing of the return,
4. All cases were penalty has been levied but not paid or recovered are eligible for wavier,
5. Were penalty has been paid/recovered it will not be refunded back to the dealer,
6. If the dealer has filed an appeal against the penalty levied or part amount of such penalty, then penalty or part penalty will not be levied if dealer pays all pending taxes with interest before 31st July, 2009 and withdraws appeal unconditionally

All returns form 1st April, 2005 to 30th June, 2009 should be filed electronically before 31st July, 2009 and taxes along with interest should be paid before filing the return.

Terminology of terms used under MVAT Act, 2002

 

Business Defined under MVAT Act, 2002

Sec.2(4) business includes, --

a) any service;

(b) any trade, commerce or manufacture;

(c) any adventure or concern in the nature of service, trade, commerce or manufacture;

whether or not the engagement in such service, trade, commerce, manufacture, adventure or concern is with a motive to make gain or profit and whether or not any gain or profit accrues from such service, trade, commerce, manufacture, adventure or concern.

Explanation. For the purpose of this clause,�      

(i) the activity of raising of man-made forest or rearing of seedlings or plants shall be deemed to be business;

(ii) any transaction of sale or purchase of capital assets pertaining to such service, trade, commerce, manufacture, adventure or concern shall be deemed to be a transaction comprised in business;

(iii) sale or purchase of any goods, the price of which would be credited or, as the case may be, debited to the profit and loss account of the business under the double entry system of accounting shall be deemed to be transactions comprised in business;

(iv) any transaction in connection with the commencement or closure  of business shall be deemed to be a transaction comprised in business;

Capital Asset Defined under MVAT Act, 2002

Sec.2(5) capital asset shall have the same meaning as assigned to it, from time to time, in the Income Tax Act, 1961, but the said expression shall not include jewellery held for personal use or property not connected with the business;

Dealer Defined under MVAT Act, 2002

Sec.2(8) dealer means any person who for the purposes of or consequential to his engagement in or, in connection with or incidental to or in the course of, his business buys or sells, goods in the State whether for commission, remuneration or otherwise and includes,-

(a)  a factor, broker, commission agent, del-credere agent or any other mercantile agent, by whatever name called, who for the purposes of or consequential to his engagement in or in connection with or incidental to or in the course of the business, buys or sells any goods on behalf of any principal or principals whether disclosed or not;

(b) an auctioneer who sells or auctions goods whether acting as an agent or otherwise or, who organizes the sale of goods or conducts the auction of goods whether or not he has the authority  to sell the goods belonging to any principal whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal;

(c) a non resident dealer or as the case may be, an agent. residing in the State of a non-resident dealer, who buys or sells goods in the State for the purposes of or consequential to his engagement in or in connection with or incidental to or in the course of, the business.

(d) any society, club or other association of persons which buys goods from, or sells goods to, its members;

Explanation- For the purposes of this clause, each of the following persons, bodies and entities who sell any goods whether by auction or otherwise, directly or through an agent for cash, or for deferred payment, or for any other valuable consideration, shall, notwithstanding anything contained in clause (4) or any other provision of this Act, be deemed to be a dealer, namely:-

(i) Customs Department of the Government of India administering the Customs Act, 1962;

(ii) Departments of Union Government and any Department of any State Government ;

(iii) Incorporated or unincorporated societies, clubs or other associations of persons;    

(iv) Insurance and Financial Corporations, institutions or companies and Banks included in the Second Schedule to the Reserve Bank of India Act, 1934;

(v) Local authorities;  

(vi) Maharashtra State Road Transport Corporation constituted under the Road Transport Corporation Act, 1950;

(vii) Port Trusts;

(viii) Public Charitable Trusts registered under the Bombay Public Trusts Act, 1950;

(ix) Railway Administration as defined under the Indian Railways Act, 1989 and Konkan Railway Corporation Limited;

(x) Shipping and construction companies, air transport companies, airlines and advertising agencies;

(xi) any other corporation, company, body or authority  owned or constituted by, or subject to administrative control, of the Central Government, any State Government  or any local authority:

Exception I. An agriculturist who sells exclusively agricultural produce grown on land cultivated by him personally, shall not be deemed to be a dealer within the meaning of this clause.

Exception II. �An educational institution carrying on the activity of manufacturing, buying or selling goods, in the performance of its functions for achieving its objects, shall not be deemed to be a dealer within the meaning of this clause.

Exception III. �A transporter holding permit for   transport vehicles (including cranes) granted under the Motor Vehicles Act, 1988, which are used or adopted to be used for hire or reward shall not be deemed to be a dealer within the meaning of this clause in respect of sale or purchase of such transport vehicles or parts. components or accessories thereof.

 

Goods Defined under MVAT Act, 2002

Sec.2(12) goods means every kind of moveable property not being newspapers, actionable claims, money, stocks, shares, securities or lottery tickets and includes live stocks, growing crop, grass and trees and plants including the produce thereof including property in such goods attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

Importer Defined under MVAT Act, 2002

Sec.2(13) importer means a dealer who brings any goods into the State or to whom any goods are dispatched from any place outside the State;

 

Non-resident Dealer Defined under MVAT Act, 2002

Sec.2(16)    non-resident dealer means a dealer who effects purchases or sales of any goods in the State, but who has no fixed or regular place of business in the State;

 

Person Defined under MVAT Act, 2002

Sec.2(17) person includes an individual, any State Government , the Central Government, any company or society or club or association or body of individuals whether incorporated or not, and also a Hindu Undivided Family, a firm and a local authority  and every artificial juridical person not falling within any of the preceding descriptions.

Place of Business Defined under MVAT Act, 2002

Sec.(18) place of business includes a warehouse, godown or other place where a dealer stores his goods and any place where the dealer keeps his books of accounts;

Purchase Price Defined under MVAT Act, 2002

Sec.2(20) purchase price means the amount of valuable consideration paid or payable by a person for any purchase made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged;

Explanation I. The amount of duties levied or leviable on the goods under the Central Excise Act, 1944, or the Customs Act, 1962 or the Bombay Prohibition Act, 1949 shall be deemed to be part of the purchase price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.

Explanation II. Purchase price shall not include tax paid or payable by a person in respect of such purchase.

Explanation III. Purchase price shall include the amount paid by the purchaser by way of deposit whether refundable or not which has been paid whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said purchase of goods;

Explanation IV.The amount of valuable consideration paid or payable by a dealer for the purchase of drugs specified in entry 29 of Schedule C shall be the maximum retail price printed on the package containing the drugs.

(The above explanation IV is deleted by Maharashtra Ordinance No. V of 2007 Dt.30.06.2007)

Explanation V- Where the purchase is effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, purchase price shall be taken to mean, the total consideration for the works contract and for the purpose of levy of tax, purchase price shall be taken to mean, the price as may be determined in accordance with the rules, by making such deduction from the total consideration for the works contract as may be prescribed.

Sec.2(21)    registered dealer means a dealer registered under this Act:

Sec.2(22) resale means a sale of purchased goods

in the same form  in which they were purchased, or

without doing anything to them which amounts to, or results in, a manufacture,

and the word resell shall be construed accordingly;

Sec.2(24) sale means a sale of goods made within the State for cash or deferred payment or other valuable consideration hut does not include a mortgage, hypothecation, charge or pledge; and the words sell, buy and purchase, with all their grammatical variations and cognate expressions, shall be construed accordingly;

Explanation,-For the purposes of this clause,

(a) a sale within the State includes a sale determined to be inside the State in accordance with the principles formulated in section 4 of the Central Sales Tax Act, 1956;

(b) (i) the transfer of property in any goods, otherwise than in pursuance of a contract, for cash, deferred payment or other valuable consideration;

(ii) the transfer of property in goods (whether as goods or in some other form ) involved in the execution of a works contract;

(In the above clause (b) (ii) for the words works contract the following words are inserted by Maharashtra Act No. XXXII of 2006 Dt.05.08.2006)

(ii)  the transfer of property in goods (whether as goods or in some other form ) involved in the execution of a works contract including, an agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property.

(In the above clause (b) (ii) for the words works contract namely the words works contract including are inserted by Maharashtra Act No. XXV of 2007 Dt.06.08.2007)

(iii) a delivery of goods on hire-purchase or any system of payment by instalments;

(iv) the transfer of the right to use any goods or any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(v)the supply of goods by any association or body of persons incorporated or not, to a member thereof or other valuable consideration;

(vi) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is made or given for cash, deferred payment or other valuable consideration:

Sec.2(25) sale price means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged.

Explanation 1. The amount of duties levied or leviable on goods under the Central Excise Act, 1944 or the Customs Act, 1962 or the Bombay Prohibition Act, 1949, shall be deemed to be part of the sale price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.        

Explanation II.  Sale price shall not include tax paid or payable to a seller in respect of such sale.

Explanation III.  Sale price shall include the amount received by the seller by way of deposit, whether refundable or not, which has been received whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said sale of goods;

Explanation IV: The amount of valuable consideration paid or payable  of a dealer for  the  sale of Drugs specified in entry 29 in Schedule C shall be the maximum retail price printed on the package containing the Drug.  

(The above explanation IV is deleted by Maharashtra Ordinance No. V of 2007 Dt.30.06.2007)

 

Purchase Price Defined under MVAT Act, 2002

(25)    �sale price� means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged.

Explanation 1. �The amount of duties levied or leviable on goods under the Central Excise Act, 1944 or the Customs Act, 1962 or the Bombay Prohibition Act, 1949, shall be deemed to be part of the sale price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.        

Explanation II. � Sale price shall not include tax paid or payable to a seller in respect of such sale.

Explanation III. � Sale price shall include the amount received by the seller by way of deposit, whether refundable or not, which has been received whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said sale of goods;

Explanation IV: The amount of valuable consideration paid or payable  of a dealer for  the  sale of Drugs specified in entry 29 in Schedule C shall be the maximum retail price printed on the package containing the Drug.  

(The above explanation IV is deleted by Maharashtra Ordinance No. V of 2007 Dt.30.06.2007)

Purchase Price Defined under MVAT Act, 2002

Sec.2(26 'Schedule' means the Schedule appended to this Act;

Service Defined under MVAT Act, 2002

SEC. 2(27) 'service' means any service as may be notified  by the State Government , from time to time, in the Official Gazette ;

State Defined under MVAT Act, 2002

sec.2(28)'the State' means the State of Maharashtra;

 

Tax Defined under MVAT Act, 2002

Sec. 2(29) 'tax' means a sales tax, leviable or as the case may be, payable, under this Act and includes any amount payable by way of composition;

Tax-free Goods Defined under MVAT Act, 2002

Sec.2(30) "tax-free goods" means goods against which the rate of sales tax is shown to be NIL in the Schedule and 'taxable goods' means goods other than  tax-free goods

Definition of Turnover of Purchases, Sec. 2(32) of MVAT Act, 2002

Sec. 2(32) 'turnover of purchases' means the aggregate of the amounts of purchase price paid and payable by a dealer in respect of any purchase of goods made by him during a given period, after deducting the amount of,

(a)  purchase price, if any, refunded to the dealer by the seller in respect of any goods purchased from the seller and returned to him within the prescribed  period; and

(b)  deposit, it any, refunded in the prescribed  period to the dealer by the seller, in respect of any goods purchased by the dealer.

Explanation I. In respect of goods delivered on hire-purchase or any system of payment by instalment or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of purchase price paid or payable during a given period shall mean the amounts paid or, as the case may be, due and payable during the said Period.

Explanation II - �����..

Purchase Price means sale price as defined u/s.2(20)

Goods means goods as defined u/s.2(12) 

Prescribed period for purpose of clause (a) for return of goods is six months form the date of sale. If goods are returned within six months the dealer can take credit of tax paid/collected on return goods [Rule 3]

Turnover of Sales Sec 2(33) of MVAT Act, 2002.

Sec 2(33) turnover of sales means the aggregate of the amounts of sale price received and receivable by a dealer in respect of any sale of goods made during a given period after deducting the amount of

(a) 'sale price', if any, refunded by the seller, to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed  period; and

(b) deposit, if any, refunded in the prescribed  period, by the seller to a purchaser in respect of any goods sold by the dealer.

Explanation I. In respect of goods delivered on hire-purchase or any system of payment by instalment or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of sale price received or receivable during a given period shall mean the amounts received or as the case may be, due and payable during the said period;

Explanation II-����..

Explanation III. Where the registration certificate  is cancelled, the amounts of sale price in respect of sales made before the date of the cancellation order , received or receivable after such date, shall be included in the turnover of sales during a given period;

Sales Price means sale price as defined u/s.2(24)

Goods means goods as defined u/s.2(12) 

Prescribed period for purpose of clause (a) for return of goods is six months form the date of sale. If goods are returned within six months the dealer can take credit of tax paid/collected on return goods [Rule 3]

Year Sec. 2(35) means financial year.

Technorati Tags: Definitions under MVAT

Due dates for filing Vat Returns-Maharashtra.

new Due Dates for Returns of Profession Tax by Employers and Payments Under Profession Tax
update 02-03-2012 The Commissioner of Sales has issued circular allowing return for period ending on 31st March, 2012 to be filed within 90 days form the end of the period. Dealer is required to file Statements in Form C, D, G, H, I, J1 & J2 within 90 days of end of the financial year and return can be uploaded only after uploading these statements. So the Commissioner has extended the date for filing return. Annual Statement/Details to be filed under MVAT by non-audit dealer The circular does not state that whether the extended date will also be applicable to VAT Audit Dealers also.

All returns to be filed electronically/uploaded at sales-tax website at http://www.mahavat.gov.in/
Forms can also be down loaded from same website
For Due dates form April 2008 See
Forms to be used
Due dates from May 2010
Due dates for filing return under

• Maharashtra Value Added Tax, 2002 (MVAT) &
• Central Sales Tax. 

Type of Dealer	Periodicity of Return	Due date of payment of tax and filing return	Form to be used
A. Retailer covered under composition Scheme
	Six Monthly	within 30 days form end of six month	Form 232
B. In year or Registration i.e. in First year
First Return in year	from date of registration or 1st April to end of quarter in which dealer is registered	within 21 days form and of the quarter	Form 231
Subsequent return in first year	Quarterly	within 21 days form and of the quarter	Form 231
C. In subsequent Year
Tax Liability during previous year is less then Rs.1,00,000/- or refund due was less then Rs.10,00,000/-	Six monthly	within 30 days from end of six month	Form 231
Tax Liability during previous year is more then Rs.1,00,000/- but less then Rs.10,00,000/- or refund due was more then Rs.10,00,000/-and less then Rs.1,00,00,000/-	Quarterly	within 21 days from the end of the quarter	Form 231
Tax Liability during previous year is more then Rs.10,00,000/- or refund due was more then Rs.1,00,00,000/-	Monthly	within 21 days from the end of the month	Form 231
D. In Last year i.e in year of surrender of Registration Certificate
Returns other than last year	as per B	as per B	Form 231
Last return	form 1st day of period after last return to date of cancellation or R.C.		Form 231
In case of Dealer under Composition Scheme other than Retailers
being Restaurant, Bakery, Dealers of Second Hand Cars, Caterers	as per B	as per B	See Details of Forms to be use
Dealers in Motor Sprit i.e Notified oil Companies	as per B	15 days from end of the period	Form 235
Certificate of Entitlement Holders	Quarterly	21 days for the end of the Quarater	Form 234

Six montly return means return for the period April to September and October to March
Due dates from April 2008

• In case of first year i.e. year of registration with sales-tax department, Six Monthly in within 21days of end of the half year. In Form 231 for MVAT Return and in Form III-B for CST return.
• In case of Subsequent year:

1. File monthly return within 21 days of end of the month, if tax liability during previous financial year exceeds Rs.10,00,000/- or refund during previous financial year is Rs. One Crore.
2. File quarterly return within 21 days of end of the quarter, if tax liability during the previous year exceeds Rs. One lakh but did not exceed Rs.Ten Lakh, or Refund during the previous year exceeds Rs.10 Lakhs but did not exceed Rs.1 crore
3. File six monthly return if during the previous year tax liability did not exceed Rs.One Lakh or Refund during the previous year did not exceed Rs.Ten Lakh.

• In case of last year i.e year in which registration numbers are surrendered : file returns regularly as in case of subsequent year, except in last month/quarter/six-monthly return, from beginning of month/quarter/six-month to the date of cancellation/surrender of registration certificate
• Dealer covered under Composition Scheme
• Other Type of Dealers

Form to be used

1. Form 231 for regular vat dealer
2. Form 232 for dealers covered under Composition Scheme
3. Form 233 for dealer executing works contract, leasing and partly under composition scheme
4. Form 234 for PSI Units
5. Form 235 for Notified Oil Companies
6. Form 210 for paying/depositing MVAT tax in bank
7. Form III-B for paying/depositing CST in bank

ePayment of Income Tax and TDS

https://onlineservices.tin.nsdl.com/etaxnew/Index.html

This is link for making e-payment of income tax, tds, fbt and other direct taxes governed by income tax department (CBDT). For making you need to have Internet banking account. Credit Cards/Debit Cards cannot be used for making e-payments at this site.
On this website you have to select appropriate challan ITNS280, ITNS 281, ITNS 282 or ITNS 282, which ever is applicable depend on tax category you have to pay. Use form ITNS 281 for making payment of TDS/ TCS. (TDS deducted by you on payment made by you or TCS collected by you on sale of scrap, etc.)
You have to use separate challan for company and non-company deductees. Also use separate challan for different type of tds payments like TDS On Payment of Salary u/192', 'TDS on payment to Contractors u/s194C', etc. Select proper assessment year and input proper Tax Deduction Number (TAN). Select your bank from the list of banks available on the site. When you click proceed, the site checks the name of Assessee with the TAN no. given. I gives the name of Assessee against TAN no. If the name is correct proceed to pay tax.

Use ITNS 280 for making payments of advance tax, self assessment and regular tax as demanded by the assessing officer. Select 'income-tax on companies-corporation tax' for corporate assessees and 'income tax' for other assessees.

After you complete making payment, the bank site will give you payment details, these details will show all the details you have filled in challan form and also show 7 digit BSR Code (Code give to each bank), Date of payment in dd/mm/yyyy form and 5 digit serial number of the bank. All this 3 details give you 20 digit CIN i.e. Challan Identification Number. eg 0202004 for BSR code, 13/07/2009 for date and 00003 for bank serial no. will give CIN 02020041307200900003. This will be reference number of you payment in income-tax department records. Periodically banks will upload this data at the departments site. You can check your CIN/payment details at this site on Challan inquiry status:

http://www.tin-nsdl.com/OLTASChallanStatusEnquiry.asp

It tak es bank two to three days to upload CIN data depending upon their practice and clearing of cheques.

Advantages of paying taxes online

• Payment of taxes can be make from any comfortable location at any time through net-banking account.

What we write on the e-challan will be directly sent to Income Tax Department. Banks will not do any data entry.

The Challan/Receipt will be generated immediately. It can be printed and saved.

As the details of CIN are available immediately, return can be filed immediately.

The details on Challan/Receipt will be clear and legible, specially CIN number.

Transaction id of the e-payment transaction will be available in bank statement. So even if the challan is lost or misplaced, CIN will be easily available.

Who can pay directly taxes online

All assessses can pay their taxes online. However from 1-4-2008 the scheme is compulsory for companies and other non-companies assesseeswho are covered under income-tax audit. The scheme is optional for other asessees

Composition Scheme under Profession Tax for Enrollment Certificate holders

Composition Scheme is available for tax payers holding enrollment certificate under Profession Tax Act of 1975. This scheme was first brought in force from 1-5-1993. According to the scheme, enrollment certificate holder can pay profession tax in advance for five year. Also the tax payer has to pay tax for only four years instead of five years. Tax saving of one year is his benefit. However this composition amount is to be paid before 30th June in which the composition amount is paid. e. g. If a tax payer wishes to pay tax in advance for financial year 2009-2010 to 2014-15, he must pay this amount by 30th June, 2009. Tax payer can pay this amount upto 31st March 2010 by paying additional amount @ Rs.200/- per month. Persons paying tax in advance will not have to pay any tax during the period even if the rates of taxes are increased. However to claim at the benefit of the scheme, the amount is to be calculated at maximum rate, i.e. Rs,2,500/- even if lower rate of tax is applicable in the year the EC holder opts for composition scheme.

Finance Bill and Amendments in Direct Taxes for A.Y. 2010-11

Rates of Income Tax

Ø Basic exemption limit for individual and women has been increased by Rs 10,000. New tax rates are as follows:
Ø In case of individual not being a women

Upto Rs. 1,60,000 Nil
Rs. 1,60,001 to Rs. 3,00,000 10%
Rs. 3,00,001 to Rs. 5,00,000 20%
Rs. 5,00,000 and above 30%

Ø In case of women not being senior citizen

Upto Rs. 1,90,000 Nil
Rs. 1,90,001 to Rs. 3,00,000 10%
Rs. 3,00,001 to Rs. 5,00,000 20%
Rs. 5,00,000 and above 30%

Ø For senior citizen

Upto Rs. 2,40,000 Nil
Rs. 2,40,001 to Rs. 3,00,000 10%
Rs. 3,00,001 to Rs. 5,00,000 20%
Rs. 5,00,000 and above 30%

Fringe Benefit Income Tax
Ø Fringe Benefit Tax on the value of certain fringe benefits provided by employers to their employees to be abolished. It is proposed to insert a new section 115WM to abolish the fringe benefit tax. Consequently, it is also proposed to restore the taxation of the fringe benefits as perquisites in the hands of the employees.

Minimum Alternate Tax
Ø Section 115 JB Minimum Alternate Tax (MAT) to be increased to 15 per cent of book profits from 10 per cent. These amendments will take effect from 1st April, 2010.

Commodity Transaction Tax

Ø Commodity Transaction Tax (CTT) to be abolished. These amendments will take effect from 1st April, 2009.

Presumptive Taxes for Small Business and Other Presumptive Tax
Ø Scope of presumptive taxation to be extended to all small businesses with a turnover upto Rs. 40 lakh. All such taxpayers to have option to declare their income from business at the rate of 8 percent of their turnover and simultaneously enjoy exemption from the compliance burden of maintaining books of accounts. As a procedural simplification, they are also to be exempted from advance tax and allowed to pay their entire tax liability from business at the time of filing their return. This new scheme to come into effect from the financial year 2010-11.
Ø Sec 40A (3). Given the special circumstances of transport operators for incurring expenditure on long haul journeys, it is proposed to raise the limit of payment to such transport operators otherwise than by an account payee cheque or account payee bank draft to Rs 35,000/- from the existing limit of Rs 20,000/-. The proposed amendment will apply to transactions effected on or after the 1st October, 2009.
Ø Under the existing provisions of section 44AE, a presumptive scheme is available to assesse engaged in business of plying, hiring or leasing goods carriages. The scheme applies to an assesse, who owns not more than 10 goods carriages at any time during the previous year. It is proposed to enhance the presumed income per vehicle for the owners of–
Ø Heavy goods vehicle from Rs. 3,500 to Rs.5,000/- per month; and
Ø Other than heavy goods vehicles from Rs. 3,150 to Rs.4,500/- per month.

Deduction under Chapter VI-A
Ø Deduction under section 80-DD in respect of maintenance, including medical treatment, of a dependent who is a person with severe disability being raised from the present limit of Rs.75,000 to Rs.1 lakh. This amendment will take effect from 1st day of April, 2010.
Ø Deduction under section 80E of the Income-tax Act allowed in respect of interest on loans taken for pursuing higher education in specified fields of study to be extended to cover all fields of study, including vocational studies, pursued after completion of schooling. This amendment will take effect from 1st day of April, 2010.
Ø With a view to reforming the system of funding of political parties it is proposed to amend section 80GGB and section 80GGC of the Income-tax Act, 1961 to provide that donations to electoral trusts by companies any persons shall be allowed as a 100 percent deduction in the computation of the income of the donor.
Ø Under section 80CCD of Income Tax Act, 1961, New Pension System (NPS) to continue to be subjected to the Exempt-Exempt- Taxed (EET) method of tax treatment of savings. Income of the NPS Trust to be exempted from income tax and any dividend paid to this Trust from Dividend Distribution Tax. All purchase and sale of equity shares and derivatives by the NPS Trust also to be exempt from the Securities Transaction Tax. Self employed persons to be enabled to participate in the NPS and to avail of the tax benefits available thereto.


Limited Liability Partnership and Distribution of Profit as remuneration at New Rate

Ø It is proposed to incorporate the taxation scheme of LLPs in the Income Tax Act on the same lines as the taxation scheme currently prevalent for general partnerships, i.e. taxation in the hands of the entity and exemption from tax in the hands of its partners. A “limited liability partnership” and a general partnership will be accorded the same tax treatment.
Ø Under the existing provisions of the Income-tax Act, the payment of salary, bonus, commission or remuneration (hereinafter referred to as “remuneration”) to a working partner of a partnership firm is allowed as deduction if it is authorized by the partnership deed and subject to the overall ceiling of monetary limits prescribed under sub-clause (v) of clause (b) of section 40. It is proposed to make upward revision of the existing limits of the remuneration. It is also proposed to prescribe uniform limits for both professional and non professional firms for simplicity and administrative ease. The revised limits are proposed to be as under:
Ø (a) On the first Rs. 3,00,000 of the book-profit or Rs. 1,50,000 or at the rate of 90 per cent of thein case of a loss book-profit, whichever is more;

(b) On the balance of the book-profit at the rate of 60 per cent;
The proposed amendment will take effect from 1st April, 2010.

Amendments in TDS Provisions
Ø Under section 194 I following changes are as follows:
Nature of Payment (194-I) Existing Proposed rate*
rate (w.e.f. 1-10-2009)
Rent —
a. rent of plant, machinery or equipment 10% 2%
b. rent of land, building or furniture to an individual and 15% 10%
Hindu undivided family
c. rent of land, building or furniture to a per son other than an 20% 10%
individual or Hindu undivided family
Ø The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010.
Ø Under the existing provisions of section 194C of the Income-tax Act, TDS at the rate of 2% is deducted on payment for a contract. However, in the case of a sub-contract, TDS is deducted at the rate of 1%. Further, in the case of payment for an advertising contract, TDS is required to be deducted at the rate of 1%.
Ø In order to reduce the scope for disputes regarding classification of contract as sub contract, it is proposed to specify the same rate of TDS for payments to both contractors as well as sub-contractors. To rationalize the TDS rates and to remove multiple classifications it is also proposed to provide same rate of TDS in the case of payment for advertising contracts. To avoid hardship to small contractors/sub-contractors most of whom are organized as individuals/HUFs, it is proposed to prescribe following rates of TDS:
a) 1% where payment for a contract are to individuals/HUF
b) 2% where payment for a contract are to any other entity.

Ø Nature of Payment (194C) Existing Proposed rate**
Rate (w.e.f. 1-10-2009)Ø Payment to —
a. Individual/HUF contractor 2% 1%
b. Other than individual/HUF contractor 2% 2%
c. Individual/HUF sub-contractor 1% 1%
d. Other than individual/HUF sub-contractor 1% 2%
e. Individual/HUF contractor/sub-contractor for advertising 1% 1%
f. Other than individual/HUF contractor/ sub-contractor for advertising1% 2%
g. Sub-contractor in transport business 1% nil*
h. Contractor in transport business 2% nil*

Ø * The nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 1% for an individual/HUF transporter and 2% for other transporters upto 31.3.2010.

Ø ** The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010.

Ø In order to strengthen the PAN mechanism, it is proposed to make amendments in the Income Tax Act to provide that any person whose receipts are subject to deduction of tax at source i.e. the deductee, shall mandatorily furnish his PAN to the deductor failing which the deductor shall deduct tax at source at higher of the following rates:
a) the rate prescribed in the Act;
b) at the rate in force i.e., the rate mentioned in the Finance Act; or
c) at the rate of 20 per cent.
Ø TDS would be deductible at the above-mentioned rates will also apply in cases where the taxpayer files a declaration in form 15G or 15H (under section 197A) but does not provide his PAN. Further, no certificate under section 197 will be granted by the Assessing Officer unless the application contains the PAN of the applicant. This amendment will take effect from 1st April, 2010.
Ø The Income-tax department is in the process of setting up a Centralized Processing Centre (CPC) at Bengaluru for centralized processing of Income-tax and Fringe benefits tax returns.

Other Amendments

Ø Sec 10(23C) – Income of educational institutions. Time limits for an application for seeking exemption extend to the 30th day of September in the succeeding financial year.
Ø By inserting new section 35AD businesses to be incentivised by providing investment linked tax exemptions rather than profit linked exemptions. Scheme is available to only certain sectors.
Ø Section 56 of the Income-tax Act to provide that the value of any property received without consideration or for inadequate consideration will also be included in the computation of total income of the recipient. Such properties will include immovable property being land or building or both, shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures or any work of art.

Rates of Income-tax For Individuals for Acc Year 2009-10 A.Y. 2010-11

Ø In case of individual not being a women

Upto Rs. 1,60,000 Nil
Rs. 1,60,001 to Rs. 3,00,000; Tax payable 10% of Income above Rs.1,60,000/-
Rs. 3,00,001 to Rs. 5,00,000; Tax payable Rs.14,000/- plus 20% of Income above Rs.3,00,000/-
Rs. 5,00,000 and above; Tax payable Rs.54,000/- plus 30% of Income above Rs.5,00,000/-

Ø In case of women not being senior citizen
Upto Rs. 1,90,000 Nil
Rs. 1,90,001 to Rs. 3,00,000; Tax payable 10% of Income above Rs.1,90,000/-
Rs. 3,00,001 to Rs. 5,00,000; Tax payable Rs.11,000/- plus 20% of Income above Rs.3,00,000/-
Rs. 5,00,000 and above; Tax payable Rs.51,000/- plus 30% of Income above Rs.5,00,000/-

Ø For senior citizen
Upto Rs. 2,40,000 Nil
Rs. 2,40,001 to Rs. 3,00,000; Tax payable 10% of Income above Rs.2,40,000/-
Rs. 3,00,001 to Rs. 5,00,000; Tax payable Rs.6,000/- plus 20% of Income above Rs.3,00,000/-
Rs. 5,00,000 and above ; Tax payable Rs.46,000/- plus 30% of Income above Rs.5,00,000/-