Claim is genuine if purchase is made by account payee cheques

Where assessee, a builder, purchased cement from one party by account payee cheques at rates which were reasonable as compared to rates paid to other parties, assessee's claim for deduction in respect of said expenses was to be allowed under section 37(1)

Where assessee in support of payment of labour charges, brought on record documentary evidence such as election card, driving licence, ration card etc. of recipients, transactions in question being genuine in nature, assessee's claim for deduction of labour charged was to be allowed.

Tags-claim exemption,how claim is genuine,account payee cheques

How PAN can validate in TRACES

In our continuous endeavor to enhance end-user functionalities, we are glad to bring to you the convenience of online facility of PAN Verification on TRACES. With this feature, you will be able to validate the PANs with confidence for the purpose of recording and reporting your transactions in the TDS statements correctly. 

  

To avail the facility, it is requested to Login to TRACES and navigate to “Dashboard” to locate “PAN Verification” in the Quick Links menu. The functionality to download Consolidated TAN – PAN File has also been provided that includes all the PANs attached with the respective TANs. 

How does it help: 

  

• Reporting of correct data has been made mandatory by CPC (TDS). Reporting of invalid PANs results into Short Deduction defaults in        processed TDS statements. 

• Helps in generating correct TDS Certificates for the deductees. 

• The taxpayer is able to avail correct TDS Credits in time. 

  

Additional Functionalities available: 

  

To correct an invalid PAN reported earlier, a C5 Correction Statement is required to be filed. In addition, the PANs can also be corrected using our Online Correction facility. To avail the facility, it is requested to Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu. For any further assistance, please refer to the e-tutorial available on TRACES. 

  

PAN Correction steps through Online Correction: 

  

•Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in “Name as per changed PAN”. 

•Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the “Action Status”. Please note that there is only one opportunity for a Valid to Valid PAN correction. 

•All the corrected rows can be viewed by clicking on “Show Edited Rows” on the screen. 

• Click on “Submit for Processing”, which will prompt to digitally sign the submission. 

  

Please refer to the e-tutorials available on TRACES, before reaching out to us on contactus@tdscpc.gov.in or call our toll-free number 1800 103 0344. 

  

CPC (TDS) is committed to provide best possible services to you. 

Tags-pan validation,how to verify pan,pan verification,verify pan

Government hikes 10 % DA Dearness allowance

The  government today  28 February 2014 brought up dearness allowance to 100 %, from 90 %, benefiting its 50 lakh personnel and 30 lakh pensioners.

Deciding to hike DA to its employees, and to provide dearness relief intended for pensioners, by 10 % to 100 % was taken from the Union Cabinet within its meeting held here.

"The Union Cabinet has approved the proposal to hike Dearness allowance to its employees and dearness relief to its pensioners to 100 % in its meeting held here, inches a source said.

This increase inside the dearness allowance from the UPA-2 government comes ahead of the imposition of the model code of conduct from the Election Commission.

The code probably will come into force while using the announcement of the schedule for your forthcoming general elections in a week.

Also it will be the second double digit DA hike in a very row. The government received announced a hike of 10 % to 90 % in September not too long ago, effective from Come july 1st 1, 2013.

The new hike in DA could be effective from the January 1 this year.

As per training, the government uses Consumer Price Index- Industrial Workers data from the past 12 months to reach at a quantum when considering any DA hike. Thus, the retail store inflation for industrial workers between Economy is shown 1 to 12 31, 2013 was used to take a final contact the matter.

In line with the provisional data unveiled by government with January 31, the retail inflation intended for factory workers within December was 9. 13 %. The revised retail store inflation data intended for January is scheduled to become released today.

An official received said earlier that the preliminary assessment suggests that DA hike are not less than 10 % and would be efficient from January 1.

Tags-dearness allowance,da rate 2014,da 2014,da rate 2014,da hike in 2014

Government approves 7th pay commission for hike salaries

The Cabinet today 28 February 2014  gave mandate to the 7th Pay Payment for revising pays of over 50 lakh key government employees as well as remuneration of thirty lakh pensioners.

The move comes before general elections owing in April-May.

"The decision can lead to the benefit regarding improved pay and allowances and also rationalisation of the pay structure regarding Central Government employees along with employees in the scope of the 7th Central Pay Commission (CPC), " a state statement said following the Cabinet meeting.

The actual Commission, it explained, will make the recommendations within 18 months of the night out of its metabolic rate.

"It may contemplate, if necessary, sending interim reports on some of the matters as then when the recommendations tend to be finalised, " explained the release with CPC's term regarding reference.

Headed by former Supreme Judge Judge Ashok Kumar Mathur, the CPC has become asked to "examine, evaluation, evolve and recommend changes that are desirable and feasible" concerning the principles that ought to govern the emoluments composition including pay, allowances along with facilities or benefits.

The recommendations, according to the terms regarding reference, have to come in while keeping because the economic conditions near your vicinity, need for fiscal prudence and the necessity to ensure that adequate resources are for sale for developmental expenditures as well as welfare measures.

The CPC's report is going to be applicable on Main Government employees, Most India Services, personnel of the Union Territories, officers and employees of the Indian Audit as well as Accounts Department, Associates of regulatory systems, officers and employees of the Supreme Court as well as personnel of Support Forces.

The panel has additionally been asked to look at the "principles that ought to govern the composition of pension along with retirement benefits", including revision of pension should you have retired prior to the date of effect of such recommendations.

There tend to be about 50 lakh key government employees, as well as those in support and railways, as well as about 30 lakh pensioners.

The CPC has additionally been asked to supply the likely impact of the recommendations on the finances of the state governments (which commonly adopt the referrals with some modifications).

It's got also been asked to maintain in view the very best global practices as well as their adaptability as well as relevance in Indian native conditions while generating the recommendations.

Oil Secretary Vivek Rae is steady Member of the Commission, while Rathin Roy (Director, NIPFP) can be part-time Member as well as Meena Agarwal (OSD, Section of Expenditure) can be Secretary.

Central Pay Commission rates are periodically constituted to search into various problems of emoluments’ composition, retirement benefits along with service conditions regarding Central Government employees and make recommendations around the changes required.

Prime Minister Manamohan Singh had approved creating of the seventh Pay Commission with September 2013.

The actual 6th Pay Payment was implemented with effect from Jan 1, 2006; the fifth from Jan 1, 1996 as well as fourth from Jan 1, 1986.

Tags-7th pay commission,7th pay commission pay scale,7th pay commission salary calculator,salary under 7th pay commission

Passengers need to fill baggage declaration form along with arrival card

Passengers returning to India need to fill luggage declaration form along with arrival card. This is new rule under custom baggage declaration regulation. Custom department issued a circular no.5/2014 dated 27 February 2014. Full circular is as under.

 Attention is invited to Customs Baggage Declaration Regulation, 2013 notified vide Notification No 90/2013-Cus (N.T.) dated 29.08.2013 subsequently amended vide Notification No. 133/2013-Cus. (N.T.) dated 30.12.2013 and Notification No. 10/2014-Cus (N.T.) dated 10.02.2014. The Customs Baggage Declaration Regulations, 2013 will come into force with effect from 1.03.2014.

2.         Under the Customs Baggage Declaration Regulations 2013 all incoming international passengers will be required to declare the content of their baggage in the Indian Customs Declarations Form prescribed in the regulation. Therefore the declaration relating to Customs purposes by incoming passengers in arrival card notified by MHA hitherto done by passengers will be dispensed with. In other words, the incoming passengers will have to fill up the form notified under Customs Baggage Declaration Regulations 2013 independent of the form prescribed by the MHA.  Ministry of Home Affairs has decided that arrival (disembarkation) card of MHA would be given to foreign nationals only.

3.           Directorate of Publicity and Public Relations, New Delhi has been requested to print the Indian Customs Declarations Forms and distribute the same to all Commissioners of Customs having jurisdiction over the airports. The Indian Customs Declarations Forms may also be handed over to concerned airlines for distributing the same among the passengers.

4.         Board desires that the Commissioners of Customs should sensitize field formations working at airports so that this arrangement should not disrupt passenger facilitation at the airports.

5.         Wide publicity may be given at the airports and suitable public notice be issued for guidance of staff.

6.         Difficulty, if any, may be brought to the notice of the Board immediately.

Tags-custom circular,custom circular 5/2014,custom circular 5,custom circular no. 5,custom circular about baggage declaration

Income tax department extends last date to claim refund

Taking relief for taxpayers looking forward to refunds, the Tax Department has extended some time limit for submitting I-T return confirmation (ITR-V) form for three assessment many years including FY10, FY11 and FY12 till March 31.

ITR-V form should be filled by assessees filing tax returns electronically with not a digital signature. The form, duly signed, should be sent to main processing centre, Bangalore, only then the return is called valid.

“The Central Board of Direct Taxes (CBDT) provides extended the time-limit for filing ITR-V forms for assessment many years 2009-10, 2010-11 and 2011-12 till March 31, 2014, for returns e-filed along with refund claims in the time allowed underneath section 139 with the Income Tax Act, ” the board said inside a statement. The decision continues to be taken to present relief to people whose returns were being being termed broken for want with the ITR-V.

Tags-income tax refund,income tax refund status,refund status income tax

Why you shouldn't withdraw PF amount while switching job

A question that you regularly gets to hear is: “I feel switching job. Must i withdraw my provident fund amount? ” Our instant reply is “no”. A provident fund (PF) is often a corpus to become maintained for retirement life or emergencies. It shouldn’t become withdrawn as so when you change work.

Retaining the amount in the PF account facilitates the fund grow which has a compound effect. Furthermore, the interest (for FY14, the rate is likely to be 8. 75%) each year earned on the total amount in a identified PF account is tax-exempt, thus turning it into a good investment decision option. When an individual changes jobs, the PF balance might be transferred from the prior employer to the newest one, so the pace of growth is maintained as well as any adverse income-tax implication might be avoided.

As for each PF regulations, every time a person leaves the employment, he is allowed to withdraw the particular PF amount provided that he remains unemployed for more than two months. Usually, he is needed to transfer the PF balance on the new employer. Right now, let us think about the income-tax implications if your amount from a recognised PF bill is withdrawn. You will find two scenarios through an I-T point of view:

Withdrawal of PF soon after five years of continuous service

When considering computing continuous service within this situation, as very well as ‘situation 2’ talked about below, the amount of service with today's employer is deemed. However, the period of service with the previous employer can be added if the particular PF amount was transferred to the current employer last time those changed jobs. Within this situation, the entire amount withdrawn will be considered as exempt through income, and no taxes are liable to be paid.

Disengagement of PF inside five years of continuous service

Within this situation, the employer’s side of the bargain, together with interest (which is not taxed earlier), will be taxed as ‘salary’. Even more, the amount of deduction claimed by the employee in the last years under Section 80C will be considered as ineligible and you will be reversed. Therefore, taxes that would've been payable for all of the earlier years if your ployee was not permitted claim deduction underneath Section 80C pertaining to his contribution to PF will be considered to fall due in the year of revulsion. Also, the interest on the employee’s own contribution will be considered fully taxable since ‘income from some other sources’.

However, just how much withdrawn from the particular PF account (even inside five years of continuous service) isn't considered taxable if your service of the employee has been terminated due in order to ill-health or discontinuance of employer’s business or due to any other explanation beyond the control from the employee. It is pertinent to make note of that in terms of the provisions from the income-tax laws, if your PF amount is taxable, the payer is necessary to deduct income tax during the time of making the payment from the PF amount on the employee.

So, withdrawing the PF total when one adjustments jobs has severe income-tax implications if your period of ongoing service is lower than five years.