Archive for the ‘Direct Tax’ Category

Amendment in TDS provisions wef 1.04.2010

June 3, 2010 1 comment

The Central Board of Direct Taxes (CBDT) have amended the Rules relating to TDS provisions date and mode of payment of tax deducted at source (TDS), TDS certificate and filing of ‘statement of TDS’ (TDS return) vide Notification No.41/2010; SO No.1261(E) dated 31.05.2010. The amended rules will apply only in respect of tax deducted on or after 1st day of April 2010.

Forms for TDS certificate have been revised to include the receipt number of the TDS return filed by the deductor. Now the Tax-deduction Account Number (TAN) of the deductor, Permanent Account Number (PAN) of the deductee, and Receipt number of TDS return filed by the deductor will form the unique identification for allowing tax credit claimed by the taxpayer in his income-tax return.          

Government Authorities (Pay and Accounts Officer or Treasury Officer or Cheque Drawing and Disbursing Officer) responsible for crediting tax deducted at source to the credit of the Central Government by book-entry are now required to electronically file a monthly statement in a new Form No. 24G containing details of credit of TDS to the agency authorised by the Director General of Income-tax (Systems). 

Due date for furnishing TDS return for the last quarter of the financial year has been modified to 15th May (from earlier 15th June). The revised due dates for furnishing TDS return are

Sl. No. Date of ending of the quarter of the financial year Due date
1. 30th June 15th July of the financial year
2. 30th September 15th October of the financial year
3. 31st December 15th January of the financial year
4. 31st March 15th May of the financial year immediately following the financial year in which deduction is made


Due date for furnishing TDS certificate to the employee or deductee or payee is revised as under

Sl. No. Category Periodicity of furnishing TDS certificate Due date


1. Salary       (Form No.16) Annual By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted
2. Non-Salary

(Form No.16A)

Quarterly Within fifteen days from the due date for furnishing the ‘statement of TDS’




Circular 1/2010: TDS on Salary u/s 192

January 18, 2010 Leave a comment

After the releasing the notification regarding valuation of perquisites for determining the taxable salary u/s 17 in the hands of employees.

CBDT has come up with a new Circular 1/2010 to determine the TDS on salary u/s 192 as the end of the previous year draws nearer.

The circular illustrates in detail as to how to calculate the amount of TDS on salary paid during F.Y. 09-10. Various declaration forms like 16AA etc. are also annexed to the circular.

Apart from this there is also a detailed illustration to elucidate as to how calculations should be done.

To download the circular click here.

Categories: Categories, Direct Tax Tags: , , , ,

New Rules for Perquisites Notified

December 20, 2009 Leave a comment

For downloading the new Notification, please refer the following link

You can start or join existing discussions on the above topic at The Quorum (CACTUS’s Forum) on

Registered in other Country is enough to avail DTAA benefits

In recent judgment of  ITAT , A company registered in Mauritius will be eligible to get the benefit of  Double Taxation Avoidance Agreement  even if its effective management in India. This ruling was in the case of Saraswati Holding Corporation, an company registered in Mauritius. ITAT agreed on argument of Saraswati Holding Corporation that “certificate of residence from the Mauritius government is sufficient proof of residency” as per CBDT Circular No – 789. Hence capital gain will be exempt.

On the basis of such we can conclude that benefit of DTAA will be availed on the basis of residency not on management basis.

Categories: Direct Tax

Dos and Donts for ITR-V

September 25, 2009 1 comment

Recently ITD came up with some important instructions to kept in mind while prinitng & submitting the ITR-V. They are as follows:

Most common mistakes have been highlighted.

  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.

Cost Inflation Index of F.Y. 09-10 released.

September 10, 2009 Leave a comment

Cost Inflation Index for F.Y. 2009-10

Notification No. 67/2009

Dated 9-9-2009

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, number S.O.709(E), dated the 20th August, 1998, namely :-

In the said notification, in the Table, after serial number 28 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-




TDS rates for Individual & HUF assessees for F.Y.2008-09

September 4, 2009 Leave a comment
Section Nature of Payment Criteria for Deduction If recipient is an Ind. Or HUF & payment does not exceed Rs.10,00,000   If recipient is an Ind. Or HUF & payment does exceed Rs.10,00,000
      IT SC EC Total   IT SC EC Total
194A Interest Payment in excess of Rs.5,000 p.a & Rs. 10,000 p.a. if paid by Banking Company, Co-operative Society & Post Office 10.00 0.00 0.30 10.30   10.00 1.00 0.33 11.33
194C Contractors & CF Agents (incase of Advertising Contracts) & Payment to Sub-Contrctor Payment in excess of Rs.20,000/- per contract or Rs.50,000 p.a 1.00 0.00 0.30 1.30   1.00 0.10 0.03 1.13
194C Contractors & CF Agents (Others) Payment in excess of Rs.20,000/- per contract or Rs.50,000 p.a 2.00 0.00 0.06 2.06   2.00 0.20 0.07 2.27
194C Transport Sub-Contrctor* Payment in excess of Rs.20,000/- per contract or Rs.50,000 p.a 1.00 0.00 0.03 1.03   1.00 0.10 0.03 1.13
194C Transport Contractors Payment in excess of Rs.20,000/- per contract or Rs.50,000 p.a 2.00 0.00 0.06 2.06   2.00 0.20 0.07 2.27
194H Commission or Brokerage Payment in excess of Rs.2,500 p.a 10.00 0.00 0.30 10.30   10.00 1.00 0.33 11.33
194I Rent Payment in excess of Rs.1,20,000 p.a 15.00 0.00 0.45 15.45   15.00 1.50 0.45 16.95
194I Rent of Plant & Machinery Payment in excess of Rs.1,20,000 p.a 10.00 0.00 0.30 10.30   10.00 1.00 0.33 11.33
194J Professional Charges Payment in excess of Rs.20,000 p.a 10.00 0.00 0.30 10.30   10.00 1.00 0.33 11.33
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