Little known schemes u/s. 80C of Income Tax Act

Little known schemes u/s. 80C of Income Tax Act Posted: 28 Mar 2012 08:06 PM PDT If an individual falls in the 30% tax bracket and has exhausted the maximum limit of Sec 80C, one can save Rs 33,000 in taxes. We runs you through the provisions of Section 80C. However, we highlight those schemes that are little known and which... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Buy home to reduce Income Tax burden Posted: 28 Mar 2012 08:06 PM PDT As the financial year comes to an end, it is time to start planning your tax saving strategies. A house can also be used to reduce the tax liability to a certain extent. Under Section 24 of the Income Tax Act, interest paid up to Rs 1.5 lakhs per... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Steps to take when your Income Tax Refund stuck with department Posted: 28 Mar 2012 08:04 PM PDT Unfortunately in our country, many honest tax-payers have pending income tax refunds. Whether it's the Income Tax (I-T) department's lethargy or the growing number of tax payers, delayed refunds remain high on the list of complaints against the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Income Tax raid- What to do? Posted: 28 Mar 2012 08:04 PM PDT Our Income Tax law allows all persons to self-assess their income and pay taxes. However, to protect the revenue base, unearth concealed income and to act as a deterrent, tax authorities have been vested with powers to conduct surveys and searches... [[ This is a content summary only. Visit www.taxguru.in for full article.]] What is Form 16 (Salary Certificate) and how is it different from Form 16A? Posted: 28 Mar 2012 08:04 PM PDT What is Form 16A and how is it different from Form 16? If you are not a salaried employee and work as a professional for an organisation and earn fees, then the certificate that shows TDS details deducted while making payments to you is Form 16A. [[ This is a content summary only. Visit www.taxguru.in for full article.]] Myths and misconceptions about Personal Income tax Posted: 28 Mar 2012 08:04 PM PDT Gifts received: Gifts received from specified relatives are exempt from income tax, and there is no upper limit also. Similarly, gifts of any amount and from anyone received during your marriage are totally tax-free. Similar is the case with the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Changes in Service Tax- Union Budget 2012 Posted: 28 Mar 2012 08:02 PM PDT Point of taxation Rules amended- In case of new levy, no tax is chargeable on services for which invoice issued and payment received within 14 days of date of new levy. Normally, date of payment shall be earlier of the date when the payment is... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Excel Tips – How to Prevent Duplicates while entering data Posted: 28 Mar 2012 08:01 PM PDT Use the Data Validation + Countif function. It Prevents the user from entering Duplicate data. To do this: 1. Select a range of cells, for example, A2:A20. 2. On the Ribbon click <Data> à <Data Validation> 3. Select the [Settings]... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Clarification on Point of Taxation Rules Posted: 28 Mar 2012 08:01 PM PDT Circular No.154/5/2012 Notification No.4/2012 - Service Tax dated the 17th March 2012 has amended the Point of Taxation Rules 2011 w.e.f. 1st April 2012, inter- alia, amending Rule 7 which applied to individuals or proprietary firms or partnership... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Budget 2012- Burning Issues In Direct Taxes Posted: 28 Mar 2012 07:57 PM PDT The deduction of Rs. 20000 under Section 80CCF for investment in infrastructure bonds was extended to A.Y. 2012-13 in last year budget to promote investment in infrastructure sector for its growth and development. But this time Mr. FM was silent on... [[ This is a content summary only. Visit www.taxguru.in for full article.]] After 18.04.2006 assessees not entitled to utilize Cenvat Credit for payment of service tax on GTA Posted: 28 Mar 2012 07:06 PM PDT Appellant is not simply a provider of output service but also a manufacturer of the excisable goods. The appellant contended that till 28-2-2008 for the manufacture of final products the service of Goods Transport Agency remained an output service... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Rate of tax shall be of the date of receipt of payment if the assessee has chosen to pay tax on the advance amount received Posted: 28 Mar 2012 06:50 PM PDT Explanation in Rule 6(1) does not make any provision as to which rate of tax will apply in situation like the one at hand (whether that on date of receipt of value or that on date of providing service). This explanation says that the service... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Appointment of ITO as ACIT – Order N0. 60 of 2012-Ad.VI Posted: 28 Mar 2012 06:35 PM PDT The CBDT has vide Order No. 60 of 2012 dated 28.3.2012 informed that the President has appointed several Income Tax Officers, presently posted in the region shown against their names, to officiate on regular basis in the grade of Assistant... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Interest under Sections 234A, 234B and 234C can be levied on assessee who is a notified under Special Court Act Posted: 28 Mar 2012 04:57 PM PDT Supreme Court has held that the provisions of the Special Court Act, wherever they are applicable shall prevail over the provisions of the Income Tax Act, 1961. The words wherever they are applicable are crucial. The Special Court Act makes no... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Penalty u/s. 271F applicable for failure to funish return u/s. 153A Posted: 28 Mar 2012 04:47 PM PDT From a bare reading of section 139 and 153A , it is evident that the provisions of section 271F are attracted when a person is required to furnish the return in accordance with section 139(1) or by provisos of that section. Section 153A starts with... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Validity of notice u/s 148 for re-opening of assessment when jurisdiction was founded merely on the possibility of escapement Posted: 28 Mar 2012 04:26 PM PDT The validity of the notice reopening the assessment under Section 148 has to be determined on the basis of the reasons which are disclosed to the assessee. Those reasons constitute the foundation of the action initiated by the Assessing Officer of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] If transaction is sham, it cannot be considered as tax planning Posted: 28 Mar 2012 04:12 PM PDT Supreme Court makes it very clear that a colourable device cannot be a part of tax planning. Therefore where a transaction is sham and not genuine as in the present case then it cannot be considered to be a part of tax planning or legitimate... [[ This is a content summary only. Visit www.taxguru.in for full article.]] ITAT upholds important transfer pricing principles on characterisation and rewards for selling activity Posted: 28 Mar 2012 02:58 PM PDT Mastek Limited Vs. The Addl.CIT ITAT that the taxpayer's UK subsidiary was not merely undertaking marketing activities. The Tribunal held that the UK subsidiary should be characterised as a distributor on the basis of its agreement with the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Regarding payment of arrears from Cenvat Credit earned at a later date Posted: 28 Mar 2012 07:20 AM PDT Circular No.962/05/2012-CX Duty payable under rule 8 is on a different footing from duty payable under Section 11A. Duty under Rule 8 is paid after self determination by the assessee unlike Duty payable under Section 11A where generally the duty is... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Taxability of payments made to overseas group companies under secondment arrangement – AAR Posted: 28 Mar 2012 04:56 AM PDT Centrica India Offshore Private Ltd., (AAR) - It was held that personnel seconded to the Taxpayer, a group company in India, did not become its employees in the absence of an obligation undertaken by the Taxpayer to pay employment costs of such... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Budget 2012 – Service Tax Changes Related To Construction Industry Posted: 27 Mar 2012 11:16 PM PDT works contract means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contrat is for the purpose of carrying out construction, erection, commissioning,... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Overseas Direct Investments by Indian Party – Rationalisation Posted: 27 Mar 2012 09:49 PM PDT A.P. (DIR Series) Circular No. 96 Creation of charge on immovable / movable property and other financial assets. Reckoning bank guarantee issued on behalf of JV / WOS for computation of Financial Commitment. Issuance of personal guarantee by the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Amended provisions of S.194I related to TDS for the purpose of S. 40(a)(ia) applicable from AY 2007-08 Posted: 27 Mar 2012 09:27 PM PDT When the CBDT itself has clarified that the amended provisions of Section 194I relating to deduction of tax at source for the purpose of Section 40(a)(ia) would be applicable for AY 2007-08, the Assessing Officer was not justified in making the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 14A Deduction not allowed in respect of expenditure incurred by assessee towards exempt income Posted: 27 Mar 2012 09:20 PM PDT As per sub-section (1) of Section 14A, no deduction is to be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of total income. Sub-section (2) of Section 14A provides the procedure for... [[ This is a content summary only. Visit www.taxguru.in for full article.]] No TDS u/s. 194H on commission or brokerage payable by BSNL or MTNL to their PCO franchisees Posted: 27 Mar 2012 09:15 PM PDT Finance Act, 2007 has incorporated third proviso to section 194H stating, 'no deduction shall be made under this section of any commission or brokerage payable by BSNL or MTNL to their PCO franchisees. The same is relevant for the A.Y. 2008-09. The... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Overseas Investments by Resident Individuals – Liberalisation / Rationalisation Posted: 27 Mar 2012 09:07 PM PDT Acquiring qualification shares of an overseas company for holding the post of a Director . Acquiring shares of a foreign company towards professional services rendered or in lieu of Director's remuneration. Acquiring shares in a foreign company... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Rate of exchange of conversion of each of the foreign currency with effect from 1st April, 2012 Posted: 27 Mar 2012 09:02 PM PDT Notification No. 26/2012 - Customs (N.T.) Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Highlights of Karnataka Budget for FY 2012-13 Posted: 26 Mar 2012 09:58 PM PDT The salient features of the Karnataka State Budget for financial year 2012-13 presented in the Legislative Assembly with respect to Commercial Taxes matters are been discussed in below article. The amendments indicated in the Article are effective... [[ This is a content summary only. Visit www.taxguru.in for full article.]]