Ministry of Finance Income upto Rs 5 Lakh to get full tax rebate; higher standard deduction proposed Relief of over Rs 23,000 crore to estimated 3 Crore small and middle class tax-payers TDS threshhold on interests on small savings raised Boost to housing and real estate sector FM announces a slew of tax reliefs for middle class and small tax payers 01 FEB 2019 Individual taxpayers having taxable annual income up to Rs.5 lakhs will get full tax rebate and therefore will not be required to pay any income tax. While presenting the Interim Budget 2019-20 in Parliament today the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal said “Because of major tax reforms undertaken by us during last four and half years, both tax collections as well as tax base have shown significant increase, achieving a moderate taxation- high compliance regime. It is, therefore, just and fair that some benefits from the tax reforms must also be passed on to the...

Ministry of Finance Central Board of Direct Taxes (CBDT) clarifies regarding issue of Prosecution Notices 21 JAN 2019 The Central Board of Direct Taxes (CBDT) has stated that certain news items that appeared in a section of media regarding enmasse issue of prosecution notices to small companies for TDS default are completely misleading and full of factual inaccuracies. CBDT clarified that Mumbai Income Tax TDS office has issued prosecution Show Cause Notices only in a limited number of big cases where more than Rs. 5 lakh of tax was collected as TDS from employees etc and yet the same was not deposited with the Income Tax Department in time. CBDT said that some defaulter companies and vested interests are deliberately misleading the media to thwart action against themselves. Having deducted tax from employees and other taxpayers and not depositing the same in time in the Government Treasury is an offence punishable under the law. It also affects the interest of the employees fro...

Income Tax benefits from Post Office Saving Schemes Interest rates on these post office saving schemes move in line with the government’s interest rates on small savings schemes.India Post or Department of Posts, which runs the postal network of the country, offers a number of saving schemes with income tax benefits. Using these saving schemes, investor can claim a deduction up to Rs. 1.5 lakh in a financial year from taxable income under Section 80C of the Income Tax Act. Interest rates on these post office saving schemes move in line with the government’s interest rates on small savings schemes, which are revised on a quarterly basis. Here are post office saving schemes that offer tax benefits: Post Office Time Deposit (TD) or Fixed Deposit (FD) account In a post office fixed deposit (FD), one can deposit a lump sum of money for a specific period and avail of features like guaranteed returns and choice of interest payout. Post office time deposit (TD) or Fixed Deposit (F...

TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens F. No. Pr. DGIT(S)/CPC(TDS)/Notification/2018-19 Government of India Ministry of Finance Central Board of Direct Taxes Directorate of Income-tax (Systems) New Delhi Notification No. 06 /2018 New Delhi, 06th December, 2018 Subject: –  TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens – reg. It has been brought to the notice of CBDT that in case of Senior Citizens, some TDS deductors/Banks are making TDS deductions even when the amount of income does not exceed fifty thousand rupees. The same is not in accordance with the law as the Income-tax Act provides that no tax deduction at source under section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. (Please refer to the third proviso to ...

SR.CITIZEN SAVINGS SCHEME F.No 79-01/2016-SB Government of India Ministry of Communications Department of Posts DakBhawan, Sansad Marg, New Delhi-110001 Date: 29.06.2018 To All Heads of Circles/Regions Addl. Director General, APS, New Delhi. Subject –   Deduction of TDS in respect of Senior Citizens who have Invested In Sr.Citizen Savings Scheme regarding. Sir / Madam, I am directed to say that Government of India has amended Suction 194A of Income Tax Act 1961 through Finance Act 2018 and Inserted below new Proviso below Sub Section 3 of Section 194A:- [Provided also that in case of payee being a senior citizen, the provisions of sub-clause (a), sub-clause (b), and sub-clause (c) shall have effect as if for tho words “ten thousand rupees”, tho words ‘fifty thousand rupees” had been substituted. Explanation.- For the purposes of this clause, “ senior citizen ” means an Individual resident In India who is of the age of shay years or more at any time during the r...

GOVERNMENT SERVANT Government of India Income Tax Department Office of the Pr. Commissioner of Income Tax-3, Chennai 4th Floor, Main Building, 121, Mahathma Gandhi Road, Chennai-34. P.N.DEVADASAN, IRS Principal Commissioner. Chennai 19/06/2018 To The Drawing & Disbursing Officer O/O Dy. Director of IT(INV) Unit III 139, IOC Bhavan I Floor IOC Bhavan Nungambakkam High Road Nungambakkam Chennai – 600034 Dear Sir/Madam, Sub:  Filing of Returns by every Government Servant – Reg. As you might be aware, every person who is having income more than Rs.2,50,000 is bound to file his/her return of income. This includes the Government Servants also. However, the data of returns filed indicate that more than 50% of the Government Servants at Chennai are not filling their income tax returns. I hope, you will agree that as government servants, we should abide by laws and to be role models to the common citizens of our country. If we, Government servants ou...

Sukanya Samriddhi Account (SSA) (i) Sukanya Samriddhi Account has been specified under clause (viii) of Sub Section (2) of Section 80(C) of Income Tax Act 1961 and deposits under these accounts enjoy benefit of this Income Tax Section up to the overall maximum limit of Rs. One lakh Fifty Thousand (1,50,000). (ii) By Finance Act 2015, a new clause (11A) has been inserted under Section 10 of Income Tax Act 1961 under which any amount withdrawn from Sukanya Samriddhi Account will not be included in the total income of a previous year of a person for the purpose of calculation of Income Tax. (iii) By Finance Act 2015, a new clause (ba) has been inserted under clause (viii) of sub-section 4 of Section SOC of Income Tax Act 1961 under which a Legal Guardian can claim Income Tax benefit for the amount deposited by him or his/her girl child under the Sukanya Samriddhi Account. GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION NO. 09/2015...

Ministry of Finance The Government of India issues clarification regarding requirement for furnishing of Country-by Country Report under Section 286(4) of Income Tax Act, 1961 26 MAR 2018 In keeping with India’s commitment to implement the Recommendations of the 2015 Final Report on Action 13, titled “Transfer Pricing Documentation and Country-by-Country Reporting”, identified under the OECD Base Erosion and Profit Shifting (BEPS) Project, Section 286 of the Income-tax Act, 1961 (‘the Act’) was inserted vide Finance Act, 2016, which provides for furnishing of a Country-by-Country (CbC) Report in respect of an International Group. The CbC Report is to be furnished by the ultimate parent entity of an International Group in the country or territory of its residence. As specified under sub-section (2) of Section 286, the said Report is to be furnished on or before the due date specified under Section 139(1) of the Act for furnishing of return of income for the relevant accounting year. Th...

CBDT extends date till 31.3.18 for linking of Aadhaar with PAN Under the provisions of recently introduced section 139AA of the Income-tax Act, 1961 (the Act), with effect from 01.07.2017, all taxpayers having Aadhaar Number or Enrolment Number are required to link the same with Permanent Account Number (PAN). In view of the difficulties faced by some of the taxpayers in the process, the date for linking of Aadhaar with PAN was initially extended till 31st August, 2017 which was further extended upto 31st December, 2017. It has come to notice that some of the taxpayers have not yet completed the linking of PAN with Aadhaar. Therefore, to facilitate the process of linking, it has been decided to further extend the time for linking of Aadhaar with PAN till 31.03.2018. PIB

Government to examine Rs.5 lakh tax exemption proposal for pensioners The finance ministry has informed Congress MP Shashi Tharoor that his suggestion to increase the tax exemption limit for pension up to Rs 5 lakh would be examined during the ongoing preparations for the Union Budget 2018, according to a communication. Responding to a letter written by Tharoor in late September, Minister of State for Finance Shiv Pratap Shukla said the suggestion that pension up to Rs 5 lakh per annum should be exempted from income tax in all cases was examined. "The proposal would be examined during the exercise for the ensuing Union Budget 2018 and the outcome would be reflected in the Finance Bill, 2018," said the letter, which was tweeted by Tharoor. The letter, dated November 14, said that a pensioner who is above 80 years is not required to pay tax if the total income, including pension, does not exceed Rs 5 lakh. "The suggestion that pension up to Rs 5 lakh per annum should be ex...