Monday 30 January 2012

TAX RATE : WOMEN



In the case of a women what is the difference between tax rate in the A.Y 2011-2012 & 2012-2013 because I am working as a nurse in a Govt.hospital and I have filed my return.

                               A.Y. 2012-2013


For resident women below the age of 60 years.

Upto Rs. 1,90,000 Nil
Rs. 1,90,001 to Rs. 5,00,000 10%
Rs. 5,00,001 to Rs. 8,00,000 20%
Above Rs. 8,00,000 30%

                                        

                                            A.Y. 2011-2012


 For resident women below the age of 65 years.

Upto Rs. 1,90,000 Nil
Rs. 1,90,001 to Rs. 5,00,000 10%
Rs. 5,00,001 to Rs. 8,00,000 20%
Above Rs. 8,00,000 30%

TAX RATE : SUPER SENIOR CITIZENS



My grandfather is 82 years old, a retired Govt.employee. He want to know is there any privilege in the tax rate for the year 2012-2013 as he is being a super senior citizen?

For resident Super Senior Citizens. (Age above 80Years)



Up to Rs 5,00,000                        Nil
Rs. 5,00,001 to Rs. 8,00,000        20%
Above Rs. 8,00,000                     30%

TAX RATE : SENIOR CITIZEN



Sir, I am a retired bank employee. My age is 63 and I have filed my income tax return. Is there any difference in the tax rate from the last year?
                        
                         A.Y. 2012-2013

 For resident Senior Citizens. (Age above 60 Years)

Up to Rs 2,50,000                             Nil
Rs. 2,50,001 to Rs. 5,00,000              10%
Rs. 5,00,001 to Rs. 8,00,000              20%
Above Rs. 8,00,000                           30%

                              
                            A.Y. 2011-2012

For resident Senior Citizens. (Age above 65 Years)

Upto Rs 2,40,000                                 Nil
Rs. 2,40,001 to Rs. 5,00,000                10%
Rs. 5,00,001 to Rs. 8,00,000                20%
Above Rs. 8,00,000                             30%



Thursday 26 January 2012

INCOME TAX RETURN : PASSWORD RESET


 I used to file my Income Tax Return through E-filing. But in between I have forgotten my password of E-filing of Income Tax Return. Sir, can I reset my password and how?


If you have forgotten your password for the Login ID that you had created for efiling of Income tax return and to view Tds Credited ( 26AS) in your account. There is a control that you can create only single account with one PAN No. So if you want to activate your account, the only option is to reset the password
First of all if you remember the answer of security question that you had provided during the registration, then you can easily reset password by just clicking the link Forgot password, answering the security question along with the new password that you want to create and your password will be reseted within 24 hours

RULES : ON GOOGLE & FACEBOOK



Can you say about latest rules of Government to prosecute Google, Facebook, etc.

The two-page report was placed after the court directed Ministry of External Affairs (MEA) to get the summons served on over ten foreign-based companies. The summons were issued on December 23 last but they remained unserved.
The court had on December 23 issued summons to 21 social networking websites for allegedly committing offences of criminal conspiracy, sale of obscene books and sale of obscene objects to young persons.
It had said prima facie the accused companies were liable to be summoned for promoting enmity between classes, causing prejudice to national integration and insulting religion or religious belief of any class, but the summons could not be executed without having prior sanction of central or state government or the district magistrate.
The Department of Information Technology, in its report, granted sanction to proceed against the 21 companies for allegedly promoting enmity between classes and causing prejudice to national integration.

IMPORTANCE : HUMAN RESOURCE ACCOUNTING


 Companies are increasing day by day in this business world and it creates many employment opportunities. So the human resource accounting has become an important part of accounting. So please tell about need and importance of Human Resource Accounting?

Basically human resource accounting (HRA) is a information system that tells management what changes are occurring over the time to the human resource of the business. HRA also involves accounting for investment in people and their replacement cost; it also involves economic value of people in the organization. It is a process of identifying and reporting the investment made in human resource of the organization that is not accounted for in current conventional accounting system.
               The adoption of system of human resource accounting discloses the value of human resources. It helps the management in employment and utilization of human resource. It helps in deciding transfer, training and retrenchment of human resource. Now the question comes in mind that, how the human resource accounting will do that?

Tuesday 24 January 2012

TAX : SENIOR CITIZEN

My grandfather is a senior citizen. He want to know the benefits available to senior citizen under the Income Tax Act?
Under the Income Tax Act, a senior citizen is a person who at any time during the previous year has attained the age of 65 years or more. There are certain benefits available to senior citizen under the Income Tax Act:-
(i) Tax rebate u/s 88B: Rebate under this section to the extent of Rs.20,000/- was available to all senior citizens whether they are pensioners or self employed or traders etc.
It may be noted that no rebate u/s 88B is available from A.Y.2006-07 onwards. However, the maximum amount not chargeable to tax in respect of senior citizens has been increased to Rs.2,40,000 w.e.f. A.Y. 2010-11. Thus, no tax is payable by a senior citizen if the total income is upto Rs.2.4 lacs for the A.Y. 2010-11.
(ii)           Benefits provided by Finance Act 2007: The deduction available u/s 80D for medical insurance premium paid is to be increased to Rs.20,000 for senior citizens. Secondly, the deduction available u/s 80DDB in respect of expenditure incurred on treatment of specified diseases is to be increased to Rs.60,000 for senior citizens.
(iii)          In order to resolve the tax issues arising out of the reverse mortgage scheme introduced by the National Housing Bank (NHB), the Finance Act 2008 has added a new clause (xvi) in Section 47 of the I.T. Act which provides that any transfer of a capital asset in a transaction of reverse mortgage under a notified scheme shall not be regarded as a transfer and shall, therefore, not attract capital gains tax. This ensures that the intention of a reverse mortgage which is to secure a stream of cash flow against the mortgage is not contradicted by treating the same as transfer

EMPLOYEE’S : PENSION & FAMILY PENSION

I am 1st year B.com student. My father is a retired Govt.employee and he is getting pension every month. Sir, I have heard about pension and family pension. Is there any difference between these two?


pension is a compensation for past service. Secondly, it owes its origin to a past employer-employee or master-servant relationship. Thirdly, it is paid on the basis of earlier relationship of an agreement of service as opposed to an agreement for service. This relationship terminates only on the death of the concerned employee. Pension received from a former employer is taxable as ‘Salary’.
Family pension is defined in Section 57 as a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of death. Pension and family pension are qualitatively different. The former is paid during the lifetime of the employee while the latter is paid on his death to surviving family members. However, in case of family pension, since there is no employer-employee relationship between the payer and the payee, therefore, it is taxed as ‘Income from Other Sources’ in the hands of the nominee(s).

ALLOWANCE : CHILDREN EDUCATION & HOSTAL FACILITY


I am a salaried person and I have filed my return to income tax department. My elder daughter is studying for medicine and staying at hostel. My youngest son is studying in 9th standard. What are allowances are available to me for the education of my children?




Children education allowance.
Rs. 100 per month per child upto a maximum 2 children.
Allowance granted to meet hostel expenditure on employee’s child.
Rs.300 per month per child upto a maximum two children

ALLOWANCE : EMPLOYEE’S HRA

An  employee  at  Trivandrum living in a rented house. What is the treatment of House Rent Allowance in the case of an employee?

Provided that expenditure on rent is actually incurred, exemption available shall be the least of the following :
(i)            HRA received.
(ii)           Rent paid less 10% of salary.
(iii) 40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi) Salary here means Basic + Dearness Allowance, if dearness allowance is provided by the terms of employment.

SALARY : DEDUCTIONS


I am a Govt. employee and filed my return to Income Tax Department. What all Deduction is avilable for me from my salary income?



The following deductions from salary income are admissible as per Section 16 of the Income-tax Act.
(i)            Professional/Employment tax levied by the State Govt.
(ii)           Entertainment Allowance- Deduction in respect of this is available to a government employee to the extent of Rs. 5000/- or 20% of his salary or actual amount received, whichever is less.
It is to be noted that no standard deduction is available from salary income w.e.f. 01.04.2006 i.e. A.Y.2006-07 onwards.

SALARY : MP/MLA, MINISTER OF STATE

                                                                         
Sir, I am Rahul a commerce student. I am more interested in the subject Income Tax. Kindly s about the salary received by a MP or MLA, Minister of state is taxable?

Yes, it is taxable. Salary received by a person as MP or MLA is taxable as “ Income from other sources”, but if a person received salary as Minister of State/ Central Government, the same shall be charged to tax under the head “Salaries”. Pension received by an assessee from his former employer is taxable as “Salaries” whereas pension received on his death by members of his family (Family Pension) is taxed as “Income from other sources”.

SALARY : INCLUDES

I am a salaried person. I want to file my return to Income Tax  Department.So please, tell me about what does "salary" include?

Section 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of “Salaries” including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to recognized provident fund (vii) Contribution of employer to a Recognised Provident Fund in excess of the prescribed limit (viii) Leave Encashment (ix) Compensation as a result of variation in Service contract etc. (x) Contribution made by the Central Government to the account of an employee under a notified pension scheme

Saturday 21 January 2012

TRUST : TAX TREATMENT


I am a retired Military Officer and have started a Private Trust for charitable purpose. The activities of my trust is going on well. Sir, I want to know about Tax treatment of such trusts?
Tax treatment of trusts:
• Approved retirement trusts are also exempt from tax.
• In the case of private trusts, if the individual shares of the beneficiaries are ascertainable, they are included in the individual taxable incomes, the tax assessment being made either directly on the beneficiary or on the trustee as a representative of the beneficiary. However, if the trust has income from business, the entire income from the trust is taxed in the hands of the trustee at the maximum marginal rate applicable to individuals unless the trust is created by will for the benefit of relatives. When the individual shares of the beneficiaries are indeterminate (i.e., discretionary trust), the entire income is taxed in the hands of the trustees, in most cases at the maximum marginal rate applicable to individuals.

PAN-CARD : FORM FILLING



Can you give some details about- WHERE TO FILE PAN FORM?

Presently, the Pan application may be submitted at the UTIISL counters along with the following.
a)         Two photographs of stamp size in case of Individual.
b)         Proof of identity and proof of residence & date of Birth
c)            Payment of fee of  Rs. 94 (application form cost)
The tamper proof high security PAN card will be issued within 15 days from the date of filing of the application.
There is a Tatkal Scheme under which the PAN card will be issued within 2 days on payment of D.D of Rs. 150/- in case of urgency.
To know the position of allotment, one may enquire with PAN query centre or PRO in Income Tax Offices. Further, there is a website available -  www.incometaxindia.gov.in.
In case of transfer of an assessee from one Region to another, the fact of transfer has to be informed at the old station with a request for transfer of PAN to the present Region.


PAN-CARD : VERIFY AND SIGN




Sir, what are the rules regarding PAN-CARD in the case of a minor, mentally incapable person, etc. while verify and sign the 'PAN' form?

Individual: The individual filling his PAN form has to sign it. In case the individual is mentally incapable, then the PAN form may be signed by his Guardian or by any other person competent to sign on his behalf.
Incase the individual is absent from India or because of any other reason, he is not able to sign and verify his PAN form, then any person duly empowered by him through valid Power of Attorney may sign on his behalf. In such case, a certified copy of Power of Attorney must accompany the PAN form.
Hindu Undivided Family: By the Karta or where he is absent from India or he is mentally incapacitated from attending to his affairs, by any other adult member of such family.

PAN-CARD : IN THE NAME OF A COMPANY




We are just pass-out Engineering students form Calicut University. We started a company and approached a bank to take a Loan for sufficient finance. The bank manager said us to get a PAN card in the name of our company. So Sir, give guidelines to get a PAN-card in the name of our company?

IN CASE OF COMPANIES, THE FOLLOWING ADDITIONAL DETAILS HAVE TO BE FILLED IN THE FORM
  • The ROC registration number of the company.
  • The date of incorporation of the company.
  • The date of commencement of business by the company.
  • In which business activity the company is engaged in.

PAN-CARD : FORM FILLING





Sir, I am an account holder of HDFC Bank,Thrissur. The bank manager asked to me about PAN card and he has given a form to apply for PAN. Please help me to fill the PAN form by giving important suggestions?

The PAN form should be filled in by the assessee with due care and caution. There should be no corrections or overwriting and it should be properly signed and verified by the persons who is authorized to do so, under the provisions of IT Act. The following important points may be taken care of while filling up the form :
NAME & ADDRESS :
The name and address must be written in block letters and while filling up the same, one cage may be left blank after each word. No initials are allowed to be used while filling in the same. Full name has to be given.
Correct code number of the assessee’s status/residential status may be filled in.
DATE OF BIRTH :
Date of birth is very important and should be filled correctly.
FATHER’S NAME :
Father’s name has to be given even in case of married ladies.
SOURCES OF INCOME :
A person should have at least one source of income to apply for PAN. So the relevant box should be checked in the form.

Friday 20 January 2012

PAN-CARD : NEED FOR WHOM



 I am a BSC nurse and I started my job as a nurse. I want to know about PAN and who has to apply for PAN-card?
The following persons should apply for allotment of PAN in Form 49A‑
  • Every person whose assessable income exceeds the maximum amount which is not chargeable to tax or any person carrying out business or profession whose total sales/turnover is likely to exceed Rs 5,00,000 in a year.
  • A person who is required to furnish return under sub-section (4A) of section 139.
  • An employer who is required to furnish return of fringe benefits tax.
  • The Central Government has power to specify by notification any class or classes of persons by whom tax is payable under the Income-tax Act or any tax or duty is payable under any other law for the time being in force.

Friday 13 January 2012

Deduction : House Rent allowance


I am a Govt. employee and staying at Chennai in a rented house. What are the rules regarding HRA deduction on salary?

House rent allowance (HRA) is received by the salaried class. A deduction is permissible under Section 10(13A) of the Incometax Act, in accordance with Rule 2A of the Income Tax Rules. You can claim exemption on your HRA under the Income Tax Act if you stay in a rented house and get a HRA from your employer.The HRA deduction is based on salary, HRA received, the actual rent paid and place of residence. The place of residence is important. For Mumbai, Kolkata, Delhi or Chennai, the tax exemption on HRA is 50 percent of the basic salary, while for other cities it is 40 percent of the basic salary.The city of residence is to be considered for calculating HRA deduction.
The least value of these is allowed as tax exemption on HRA:
Actual rent allowance the employer provides as part of salary in the relevant period during which the rental accomadation was occupied Actual rent paid for the house, less 10 per cent of basic pay 50 percent of basic salary if you reside in Mumbai, Calcutta, Delhi or Chennai, or 40 per cent if you reside in other cities.

TDS ON SALARY: EMPLOYEES RESPONSIBILITY IF EMPLOYER DEFAULTS


In the case of TDS on salary, whether there is any responsibility for an employee if employer makes any default for TDS at the time of payment of salary to employees?
Various penalties are levied on the employer in case of default, making the entire procedure equally painful for your employer.TDS is solely the obligation of the employer but, if as an employee you are aware that there is a TDS default, then you may be held responsible too. If your total income exceeds the maximum amount not chargeable to tax and no TDS is being deducted by the employer, then you are under an obligation to pay tax through the advance tax route.

Thursday 12 January 2012

MAINTENANCE OF BOOKS OF ACCOUNTS :PROFESSIONALS


I am an Engineer, and I have filed my income tax return. My annual income is morethan Rs.150000. Sir, I want to know that whether I want to keep my accounts up-to-date?

Dear Prince,

Section 44AA of Income Tax Act and rule 6F of income tax rules deal with the provisions regarding maintenance of books of accounts under Income tax Act.
As per section 44AA(1) read with rule 6F the persons carrying on any of the profession as mentioned below are required to maintain books of accounts and other documents as may enable the assessing officer to compute his total income, if yearly gross receipts of the profession exceeded  Rs. 150000.
                               Provision to Rule 6F (1) provides that if the gross receipts of a profession do not exceed Rs 150000 in any one of the three years immediately preceding the previous year or where the profession has been newly setup in the previous year, his total gross receipts in the profession for that year are not likely to exceed the said amount, then such professional need not to maintain any books of accounts as mentioned in sub rule 2 of rule 6F.


TDS:RULES




Sir, I am a bank clerk. Usually my employer used to deduct TDS at the time of payment of salary to employees. Kindly say about the rules regarding TDS by the Income Tax Department.?

The Income-Tax Act casts responsibility on the employer for tax deducation at source (TDS) at the time of payment of salary to employees whose salary income is above the maximum amount not chargeable to tax. The employer is required to deduct TDS on salary at the average  rate of income-tax and deposit the same with the government within the prescribed time. The employer is also required to file  withholding tax  returns and issue TDS certificate to the employee.