Posted on February 28, 2010 with No Comments
As per existing provisions of Section 40(a)(ia) of the Act, certain payments made to residents were not allowable as deduction where tax was not deducted or after deduction, was not paid before end of the year. In case where the tax was deducted in the last month of the year, then no disallowance u/s. 40(a)(ia) would be made, so long as the tax was deducted during the year and paid before the due date of filing the return of income.
It is now proposed that so long as the tax is deducted during the year and it is also paid on or before the due date of filing the return of income, then no
disallowance will be made u/s. 40(a)(ia) of the Act. However, it must be kept in mind that in any case, the deduction of TDS is required to be made on or before the end of the year. If there is a failure to deduct tax, the disallowance will be made, notwithstanding the fact that the tax has been deducted after end of the year and paid before the due date.
Posted on February 28, 2010 with No Comments
Under the existing section 80D, deduction upto a sum of Rs. 15,000 on premium paid for insurance on the health (Mediclaim) of the assessee and his family. A further deduction of Rs. 15,000 is admissible if the medical insurance is taken for
parents of the assessee. It is also provided in the existing provision that if the insured is a senior citizen, the said limit will become Rs. 20,000.
It is now provided that if any contribution is made to the Central Government’s
health scheme then the same would be also eligible for the deduction U/s. 80 D,
subject to the above overall limit.
Posted on February 28, 2010 with No Comments
In respect of rates of tax, the following changes have been proposed in the Finance Bill, 2010:
• Basic exemption limit remains the same. The slab for 10% tax has been revised to
Rs. 5,00,000/- from the existing Rs. 3,00,000/- in case of Individuals, HUFs, AOPs
and BOIs.
• Surcharge of 10% applicable to domestic companies has been reduced to 7.5%.
There is no change in the rate of surcharge of 2.5% in case of foreign companies.
• There is no change in tax rates of Firms, Domestic Companies, Companies other
than Domestic Companies and Co-operative Societies.
• There is no change in rates of Educational Cess, Secondary & Higher Secondary
Cess and its applicability.
• Rate of Minimum Alternate Tax in case of Companies is proposed to be increased
from 15% (effective 16.995% with surcharge and cess) to 18% (effective 19.9305%
with surcharge and cess).
• Rate of Dividend Distribution Tax remains same.
• Rates of Securities Transaction Tax and its applicability remains the same.
• There is no change in the threshold limit and rate of wealth tax.
Posted on February 9, 2010 with No Comments
We share with you Propriety of Revenue’s instruction to its officers demanding service tax on renting of immovable property against Delhi High Court’s ruling during pendency of SLP before Supreme Court, Read More »
Posted on February 9, 2010 with No Comments
Here is important update regarding IT Department Strategy to achieve Revenue Collection Target
Read More »
Posted on February 9, 2010 with No Comments
All CA Firms
We would like to inform that the last date for online submission of form with the O/o C&AG of India for getting empanelled for appointment as auditors of Government Companies/Corporations for the year 2010-2011 is 15th February 2010. Specified documents should be submitted with the O/o C&AG of India at the following address by 10th March 2010. Read More »
Posted on January 31, 2010 with No Comments
Pakistani all-rounder Shahid Afridi was today banned for two Twenty20 Internationals after pleading guilty to a ball-tampering charge during the fifth and final ODI against Australia in Perth. Read More »
Posted on January 31, 2010 with No Comments
In the third quarter review of monetary policy for the year 2009-10 released on 29th January 2010, where consensus expectation was a 0.50% increase in Cash Reserve Ratio (CRR), RBI surprised the markets a tad by hiking the CRR by 0.75%. However it left the reverse repo and repo rates unchanged at 3.25% and 4.75% respectively in line with consensus expectations. The hike in CRR implies that banks would have to place an additional Rs. 36,000 crores with the central bank. These steps give momentum to RBI’s tightening of monetary policy and both the policy document and post-policy comments by the Governor emphasized the point. In tune with its signals the central bank also reiterated its intention to:
Read More »
Posted on January 28, 2010 with No Comments
A new provision relating to tax deduction at source (TDS)
under the Income Tax Act 1961 will become applicable with effect
from 1 April 2010. Tax at higher of the prescribed rate or 20% will
be deducted on all transactions liable to TDS, where the Permanent
Account Number (PAN) of the deductee is not available. The law
will also apply to all non-residents in respect of payments /
remittances liable to TDS. Read More »
Posted on January 28, 2010 with No Comments
Central Board of Direct Taxes has decided to extend the time limit for filing ITR-V form relating to income-tax returns filed electronically (without digital signature) on or after 1st April 2009, up to 31st March 2010 or within a period of 120 days from
the date of uploading of the electronic return data, whichever is later. The ITR-V
form should continue to be sent by ordinary post to Post Bag No.1, Electronic City
Post Office, Bengaluru – 560100 (Karnataka). Read More »