Useful tips to save Income Tax in F.Y. 2012-13

Useful tips to save Income Tax in F.Y. 2012-13 Posted: 13 Jan 2013 05:15 PM PST Income from Salary:-Section 17 of the Income Tax (IT) Act is all about taxation under the head 'salary'. In most of the cases, it is impossible for a salaried person to avoid tax on his income, except by way of deduction under chapter VI A of the IT Act. Deduction on children's education u/s. 80C & 80E Posted: 13 Jan 2013 05:10 PM PST The cost of educating our children is rising consistently. It's a matter of concern for all of us. One relief is the tax benefit provided for spending on children's education. The Income Tax Act provides a direct deduction on account of fees paid for the education of dependent children. The act... Taxability of Leave Travel Allowance (LTA) Posted: 13 Jan 2013 05:04 PM PST Leave Travel Allowance (LTA) is the most common element of compensation adopted by employers to remunerate employees due to the tax benefits attached to it. Section 10(5) of the Income-Tax Act, 1961, read with Rule 2B, provides for the exemption and outlines the conditions subject to which LTA... For Reassessment Issue of notice U/s. 148 is mandatory Posted: 13 Jan 2013 01:50 AM PST The notice prescribed by section 148 cannot be regarded as a mere procedural requirement. It is only if the said notice is served on the assessee that the ITO would be justified in taking proceedings against the assessee. If no notice is issued or if the notice issued is shown to be invalid, then... An outsider's perspective to ICAI Elections 2012 Posted: 13 Jan 2013 12:14 AM PST It all started about 2-3 months ago, when I suddenly starting receiving e-mails in my inbox from unknown people who were enthusiastic to share borrowed knowledge with me – borrowed because was forwarded presentations created by people other than the ones from whom I received the e-mails. It... Service tax on interest for delayed payment payment of credit card dues Posted: 13 Jan 2013 12:04 AM PST The bank's customers holding credit cards purchase goods from shops and the bank pays to the shop keeper on their behalf. Till the customers pay up the money to the bank, they are debtors and they stand in the shoes of borrowers. If that be the case, the amount transacted is a loan and interest... Cestat Appeals and stay applications to be listed according to age Posted: 12 Jan 2013 11:55 PM PST 1. Henceforth appeals and stay applications are to be listed in the cause list chronologically age-wise. 2. Assistant Registrars of the concern Benches will ensure that at least 20 stay applications and 15 regular matters are listed in cause list chronologically. List of Documents and the Check-List for Application of Single/Centralised Registration Posted: 12 Jan 2013 11:51 PM PST In order to simplify the process of single & centralized registration, the requirements of documents vide Annexures-I & IA have been re-casted. (Refer Annexures I & IA). Clarification on Payment of Service Tax on rent payable by Central/State Government Departments Posted: 12 Jan 2013 11:46 PM PST It is to bring to the notice of all trade associations and stake holders that Clarification has been sought whether Service Tax is payable on rent paid by them to various building owners who has given the buildings on rent to Govt. Departments for office purpose. Non Applicability of S. 44AD does not mean that profit will lower than 8% when turnover is more than Rs. 40.00 lacs Posted: 12 Jan 2013 11:26 PM PST Section 44AD deems the net profit rate at 8% in cases where accounts are not maintained and turnover is up to Rs. 40.00 lacs. This however, does not mean that profit will lower when the turnover is more than Rs. 40.00 lacs. Post Office Savings Account (Amendment) Rules, 2012 – Amendment in Rule 4A Posted: 12 Jan 2013 11:23 PM PST These rules may be called the Post Office Savings Account (Amendment) Rules, 2012. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In Post Office Savings Account Rules, 1981, in rule 4A, in the Table, — Appellate Authority must quantify service tax liability in an appeal seeking upward revision of taxes Posted: 12 Jan 2013 08:04 PM PST When the department wanted the tax liability of the assessee to be revised, it was incumbent on the appellate authority to record a clear finding and to spell out in quantitative terms what should be the correct tax liability of the assessee. Client Referral income earned from banks & insurance co. is 'Business Auxiliary Services' Posted: 12 Jan 2013 08:03 PM PST Assessee was promoter and marketer of services of banks as well as insurance company, and was auxiliary in the chain of economic activity carried on by them. Assessee had accordingly provided Business Auxiliary Service to the banks as well as insurance company.