Showing posts from 2016

Schedule of Appeal Fees & How to file Income Tax Appeal Challan

Schedule of Appeal Fees Particulars Fees for filing appeal before CIT (A) Fees for filing appeal before I.T.A.T Assessed Total Income is Rs. 1 lakh or less Rs. 250 Rs. 500 Assessed Total Income is more than Rs. 1 lakh but not more than Rs. 2 lakhs Rs. 500 Rs. 1,500 Assessed Total Income is more than Rs. 2 lakhs Rs. 1000 1% of Assessed Income subject to a maximum of Rs. 10,000 Where subject matter is not covered under any of above Rs. 250 Rs. 500 Under Wealth Tax — Rs. 500 Miscellaneous application u/s 254(2) — Rs. 50 Stay Petition — Rs. 500 How to Fill Income Tax Appeal Challan? An Appeal can be filed only after Appeal Fee is paid. So, one should take care of the following points while making the payment of appeal fee and filling the proper challan as that fee can’t be adjusted against tax payment: The challan form to be used is  Challan No. 280 . If the Appeal is for more than one year, Appeal Fees has to b

Income Tax Department- Hitting Points (Scrutiny- A.Y 2013-14)

Income tax department has started sending notices to non-filers for the assessment year 2013-14 & onwards & are also using the said information to verify under-reporting of income 1. Annual Information Return(AIR) AIR-001: Cash deposits aggregating to Rs. 10,00,000/- or more in a year in any savings account AIR-002: Paid Rs. 2,00,000/- or more against credit card bills AIR-003: Investment of Rs. 2,00,000 or more in Mutual Fund AIR-004: Investment of Rs. 5,00,000/- or more in Bonds or Debenture AIR-005: Investment of Rs. 1,00,000/- or more for acquiring shares AIR-006: Purchase of Immovable Property valued at Rs. 30,00,000/- or more. AIR-007: Investment in RBI Bond of Rs. 5,00,000/- or more 2. Central Information Branch (CIB) CIB- 94: Sale of Motor Vehicle CIB-151: Transfer of immovable property CIB-154: Transfer of capital assets where value declared for the purpose of stamp duty is more than sale value CIB-157: Purchase of Immovable property va

Union Budget 2016- Key Highlights

The Finance Minister, Mr. Arun Jaitely on February 29, 2016 presented his 3rd ‪#‎UnionBudget‬ in the Parliament. Various changes have been proposed in the income-tax provisions which would impact the taxable income of an individual. The key direct tax proposals made for an Individual are as under: 1) Rate of surcharge shall be increased to 15% from 12%, if total income of an individual exceeds Rs. 1 crore. 2) Relief under Section 87A is proposed to be raised from Rs. 2,000 to Rs. 5,000 if total income of a resident individual does not exceed Rs. 5, 00,000. 3) Dividend income is exempt under section 10(34). However, the Finance Bill proposes an additional tax at the rate of 10% on gross amount of dividend income received from domestic company, if it exceeds Rs. 10 lakhs per annum. 4) Additional deduction up to Rs. 50,000 is proposed under section 80EE in respect of interest on housing loan to the first time individual buyers of a residential house property. 5) Maximu

Cheminvest Ltd. Vs. CIT- (Delhi High Court) [ Discussion on the Judgement]

Recently, the delhi High Court in the case of Cheminvest Ltd. Vs CIT held that in absence of any income claimed as exempt by the assessee, there cannot be any disallowance u/s 14A of the Act. Very said view was taken by The Hon'ble Gujarat High Court in the case of CIT vs Corrtech Energy (P) Ltd. reported in 372 ITR 97.   The facts of the case were that, the assesse was engaged in the business of making investment in shares and accepting/granting of loans. The Assessee was one of the co-promoters of Max India Ltd. The Assessee borrowed funds on which interest expenditure of Rs.1,21,03,367/- was incurred. The factual assertion of the Assessee was that in the relevant AY no dividend income was earned by the Appellant from the amount invested in various shares.For the AY in question, the Appellant filed a return of income declaring a loss of Rs.13,84,086/-. This case was picked up for scrutiny and the Assessing Officer (AO) completed the assessment under Section 143(3) of the Act di

Form No. 15CA/CB

1. Why Form 15CA? Form 15CA is a Declaration of Remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. This is starting of an effective Information Processing System which may be utilized by the Income tax Department to independently track the foreign remittances and their nature to determine tax liability. Authorised Dealers/  Banks  are now becoming more vigilant in ensuring that such Forms are received by them before remittance is effected since now as per revised Rule 37BB a duty is casted on them to furnish Form 15CA received from remitter, to an income-tax authority for the purposes of any proceedings under the Income-tax Act. 2. Whether Form 15CA has to be submitted in all cases since the Bankers demand it invariably? In this regards the attention is invited to the Headings of the Form which provides as under: “Information to be furnished for  payments, chargeable to tax , to

TDS on Non Residents-S.195

Tax Deducted at Source (TDS) is the first way of collection of any taxes. Under Income tax also TDS is the very important tax collection method. TDS under income tax varies based on the nature of transaction and payment by different sections, such as section.194A, 194B, 194C, 194I etc. Out of different TDS sections, section 195 is the very important section which covers the TDS on Non resident payments. Under globalisation scenario the business boundaries are not restricted with one country; it spread over all over the world. Accordingly tax laws are also differing. In our country the TDS on Non resident under section 195 is the unique section to identify the tax rates and deductions on our business transaction with non resident day to day basis. In this article I would like to discuss about the Frequently Asked Questions (FAQ) on TDS on Non resident payments under section 195 of Income tax act. Q.1 What is the meaning of Non resident? Ans : To decide the residential status of p

Discussion on purchases held Bogus

Introduction Bombay High Court in Mahalaxmi Cotton Ginning Pressing and Oil Industries v The State of Maharashtra & Others (2012) 51 VST 1 (Bom.) (HC) (SLP dismissed by the Supreme Court) dealing with set off under section 48(5) and 51(7) of the Maharashtra Value Added Tax Act, 2002. Issue before the court was when dealer collects the taxes and does not deposit it in the Government Treasury, can the purchased be entitled to set off of the said taxes. Validity of the provision was challenged. Upholding the validity of the provision the court held that .Section 48(5) uses the expression “actually paid” in to the Government treasury. The words “actually paid” must receive their ordinary and natural meaning. There is no reason for the court to depart from the plain and ordinary meaning of these words when used in the context of section 48(5). To accept the contention that “actually paid…in the Government Treasury” should be read to mean the tax that ought t