Income Tax department revises the (Form 16) TDS certificate format issued by employers The Income Tax department has revised Form 16 by adding various details, including income from house property and remuneration received from other employers, thereby making it more comprehensive to help check tax avoidance. It will also include segregated information regarding deductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources. Form 16 is a certificate issued by employers, giving details of employees’ TDS (tax deducted at source) usually by mid June and is used in filing I-T returns. The revised Form, which has been notified by the Income Tax department, will come into effect from May 12, 2019. This means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16. Among other things, the revised Form 16 will also include details o...

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...

HIGHLIGHTS OF BUDGET 2019 Tax 1. Within 2 years, Tax assessment will be done electronically 2. IT returns processing in just 24 hours 3. Minimum 14% revenue of GST to states by Central Govt. 4. Custom duty has abolished from 36 Capital Goods 5. Recommendations to GST council for reducing GST rates for home buyers 6.  Full Tax rebate upto 5 lakh annual income after all deductions. 7. Standard deduction has increase from 40000 to 50000 8. Exempt on tax on second self-occupied house 9. Ceiling Limit of TDS u/s 194A has increased from 10000 to 40000 10. Ceiling Limit of TDS u/s 194I has increased from 180000 to 240000 11. Capital tax Benefit u/s 54 has increased from investment in one residential house to two residential houses. 12. Benefit u/s 80IB has increased to one more year i.e. 2020 13. Benefit has given to unsold inventory has increased to one year to two years. Other Areas 14. State share has increased to 42% 15. PCA restriction has abolished fro...

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...

Calculation of Income tax an Employee Below 60 Age A.Y.2018-19 ANNEXURE-I SOME ILLUSTRATIONS Example 1 For Assessment Year 2018-19 (A) Calculation of Income tax in the case of an employee(Male or Female) below the age of sixty years and having gross salary income of: i) Rs.2,50,000/- , ii) Rs.5,00,000/- , iii) Rs.10,00,000/- iv) Rs.55,00,000/-. and v) Rs. 1,10,00,000/- (B) What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices: Particulars Rupees Rupees Rupees Rupees Rupees (i) (ii) (iii) (iv) (v) Gross Salary Income (including allowances) 2,50,000 4,00,000 10,00,000 55,00,000 1,10,00,000 Contribution of G.P.F. 45,000 50,000 1,00,000 1,00,000 1,00,000 Computation of Total Income and tax payable thereon Particulars Rupees Rupees Rupees Rupees Rupees (i) (ii) (iii) (iv) (v) Gross Salary 2,50,000 4,00,000 10,00,000 55,00,000 1,10,00,000 Less: Deduction U/s 80C 45,000 50,000 1,00,000 1,00,000 1,00...

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...

TA AND SITTING FEE - PAYABLE TO OFFICIAL AND NON - OFFICIAL MEMBERS / EXPERTS F.No.21-1/2015(FD- 1/B) Dated: 22.09.2017 OFFICE MEMORANDUM TA AND SITTING FEE - PAYABLE TO OFFICIAL AND NON - OFFICIAL MEMBERS / EXPERTS In supersession of UGC.OM.No.21-1/2015(FD-1/B)dated 16th March,2016,the rules for TA and Sitting Fee payable to the official and non-official members/ experts win be as under: The categories of Official and Non‐Official Members are as fo1lows: Serving(State/central) Government servants, Semi Government Autonomous Bodies, Employees paid from the consolidated Fund of India or through Grants-in-aid are treated as Official Members. AⅡ others including retied Government Servants and retired/ex-member of the University Grants Commission or Statutory Bodies viz.Universities, Institutions, Councils, Boards and Societies etc. are to be treated as Non-Official Members. NOTE " Permanent Account Number (PAN) allotted by the Income Tax Authorities has to be indicated by the member/...