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News & Amendments ( Archive)

Additional modes of generating EVC to e-verify Income Tax returns are notified....

A facility to prevalidate Bank details & Demat Account details will be provided under profile settings menu. Assessee will be required to provide details which are registered with bank. For pre validating Bank details; Bank account number, IFSC, e-mail id & mobile number will be required and for pre validating D-mat details; D-mat account number, e-mail id & mobile number will be required.

The generated EVC will be sent on registered mail id and/or registered mobile number.

Dated: 25th January 2016

click here to know- How to e-verify Income Tax Return?
Process of submission of Form 15G/15H simplified and expected to go online soon....

New Forms 15G & 15H have been issued. Process of filing Form 15G/15H has been simplified and very soon individuals will be able to submit their Form 15G/ 15H online.

Dated: 29th September 2015
Read in detail about Form 15G & 15H
CBDT instructs income tax officers not to put inconvenience to assesses for non deposit of TDS by deductors....
A very common problem faced by many taxpayers was of income tax demand due to tax credit mismatch. Taking under consideration the grievances of tax payers, CBDT has directed that in cases of tax credit mismatch due to default by deductor, assessees shall not be put to inconvenience.

In simple words demand of income tax due to default of deductor shall not enforced assessees coercively.
Dated: 1st June 2015
Read the instruction in detail here
PAN Card to be issued in 48 hours....
Very soon getting PAN card will be a 48 hours job. The Government is soon going to launch an online facility for issuing PAN card within 48 hours.

Disclosure of PAN is mandatory in many transactions beyond a certain amount. Quoting PAN is also proposed to be  mandatory by Finance Act 2015 in case of purchase of jewellery of Rs. 1 lac or more.
Source: Press Trust of India
Dated: 21st April 2015

What is PAN?
How to apply for PAN?
Roll over of Fixed Maturity Plans shall not be treated as transfer ....
There will not arise any capital gain at the time of roll over of FMPs. Capital gain will be at the time of final redemption of the FMPs.
Latest circular by CBDT clears taxability issue on extension of term of fixed maturity plans(FMPs). It clearly states that there will not be any capital gain at the time of opting for extension or roll over of the term of FMPs. Capital gain will arise at the time when finally FMP is redeemed after the extended term.

Dated: 9th April 2015
Click here to Read more about Fixed Maturity Plans
RD interest to attract TDS....
Interest on RD ia also proposed to attract TDS. Budget 2015 has proposed to bring RD interest with in the TDS framework. We may expect deduction of Tax (TDS) on interest on RDs from the financial year 2015-16.

Click here to Read more about interest on RD-Recurring Deposits
Dated: 28th February, 2015
Bold & beautiful - The Union Budget 2015 
Honorable Finance Minister Mr. Arun Jaitely presented Union Budget on 28th February 2015. He has presented a budget which do not have points which looks dramatic and woo the public at large. No changes have been made in favourite areas of individual tax payers i.e. Tax limits, deduction limit under section 80C or deduction for self occupied House Property. 

Click here to Read the highlights of Budget 2015 
Dated: 28th February, 2015
Income Tax is now on Twitter....

With the start of year 2016, Income Tax Department is extending its external communication to social media such as Twitter, Facebook and You Tube. So now department has opened its official twitter account as IncomeTaxIndia.

Lets welcome our Income Tax Department on Twitter.

Dated: 4th January 2016
Facility to view the computation of demand raised by AO is now available on e-filing portal....

Now you can view the computation of Income Tax demand raised on the e-filing portal itself. Click on the download button next to the demand on Response to Outsatanding Demand. A pdf file will be downloaded having detailed computation of demand.

Dated: 9th October 2015
CBDT plans to initiate Email based assessment proceedings....

To improve the tax payer services, enhance efficieny and create a paperless environment for assessment proceedings CBDT has decided to introduce email based communication with taxpayers on a Pilot Basis. This will eliminate the necessity of visiting the Income Tax Officers.

Dated: 19th October 2015
Cost Inflation Index for the Financial Year 2015-16 Announced by CBDT ....

Central Board for Direct Taxes (CBDT) has announced value of Cost Inflation Index for Financial Year 2015-16. The value is  1081. Last year ie. financial year 2014*15  it was 1024. Capital Gain Index helps in calculating long term capital gains on sale of capital assets.

Dated: 25th July 2015

Check out the list of Cost inflation index for all financial years
Good news for bank employees - Second and Fourth saturday of the month declared as a public holiday for Banks....

Ministry of Finance declares second and fourth Saturday of every month as a public holiday for Banks in India. The notification issued in excercise of powers conferred under the Negotiable Instruments Act 1988.

This notification is applicable from 1st September 2015. So now from next month onwards banks will be closed on second and fourth Saturday of the month.

Dated: 20th August 2015
RBI notifies increase in PPF deposit limit from Rs. 100000 to Rs. 150000......

Yearly limit of deposit in PPF account is increased from Rs. 100000 to Rs. 150000. RBI notified increase in PPF deposit limit on 22nd August 2014. This notification is issued in pursuance to the announcement made by honorable finance minister Mr. Arun Jaitley in his budget 2014.

More about Public Provident Fund
India Post launched opening of Sukanya Samriddhi Accounts....

Savings Accounts for the benefit of minor girl child - Finally Post Offices have started opening Sukanya Samriddhi Accounts. Opening of the SSA Account with banks is still awaited.

Click here to Read more about Sukanya Samriddhi Yojana
Latest upgradation of Income tax e-filing website....

Introduction of "Response to Outstanding Demand" option at e-filing portal....
E-filing portal of Income Tax department has come up with further welcoming changes by introducing the facility of respose to outstanding demand. Many of us were facing the problem as to how to reply and hom to reply about the demand showing outstanding on our e-filing account. Now CPC has come up with an option at our e-filing account "Respose to Outstanding Demand". With this we can now enter our response for the outstandind demand of income tax.

Click here to know the step by step process to Respond to Outstanding Tax Demand

Direct Login & reset Password facility introduced using net banking account....

Earlier facility to reset password & direct login through net banking account was introduced with only three banks(Corporation Bank, Union Bank of India & Oriental Bank of Commerce). Now this facility is extended to other banks too namely: Bank of India, Kotak Mahindra Bank, Punjab National Bank. Other banks are also expected to join sooner.

Dated: 11th December, 2014
Frequent withdrawls from ATMs will now be costlier compared to earlier scenario......

RBI has reduced the limit of free transactions from other bank's ATM to only three transaction in a month (earlier this limit was five transactions in a month) in six metros-New Delhi, Mumbai, Kolkatta, Chennai, Hyderabad and Bangaluru.
However for the transactions from own bank's ATM, RBI has directed banks to provide atleast five free transactions from ATMs in a month in six metros. Transactions beyond the limit will be chargeable with a fee of Rs. 20 per transaction(plus service tax if any)

This move is taken referring to growing cost of ATM deployment and maintenance by banks. This reduction in limit of free transactions from ATMs will be applicable from November 1, 2014.

Dated: 14th August 2014
Kisan Vikas Patra(KVP) - the earlier popular small saving instrument is relaunched....

The earlier popular small savings instrument Kisan Vikas Patra(KVP) is relaunched with an intention to attract investors to save more and stay away from fraudulent schemes.
KVPs were withdrawn in the year 2011, now relaunched KVPs will be available with minimum denomination of Rs. 1000. KVP scheme doubles the invested money in 100 months ie. 8 years and 4 months.

Dated: 18th November, 2014
Union Budget presented by Honorable Finance Minister Mr. Arun Jaitely on 10th July 2014....

With the budget for FY 2014-15 there is some positive implications on individuals. Increase in limits of deductions has brought tax savings in taxpayers pocket. Read the impact of this budget on your pocket.

Impact of Budget-2014 on individuals
Cost Inflation Index for the Financial Year 2014-15 notified by CBDT.....

CBDT Notifies the Cost Inflation Index for the Financial Year 2014-15. Cost Inflation Index for the Financial Year 2014-15 for calculating Long Term Capital Gains Tax  is 1024.

Notification published on 11th June 2014

See All Cost Inflation Index
Income Tax Deparment introduced facility of direct login to incometax e-filing website from your internet banking account....

A welcome and relaxing move has been taken by Income Tax deparment. It has introduced direct login facility to your e-filing account using your net banking account. This facility presently been launched with Corporation Bank, Union Bank of India and Oriental Bank of Commerce. Later this facility is expected to be launched with all banks.

Dated: 13th August 2014

Forgot password to e-filing website of Income Tax Deparment?
CBDT makes a welcome amendment in PAN application-Now an option is available to choose mother's name to be printed on your PAN card.....

CBDT with its latest notification makes a welcome amendment in PAN application 49A. Now one can choose his/her mother's name to be printed on PAN card. Earlier only father's name was possible to be printed on PAN card. With this change now a choice is given to choose between father's and mother's name to be printed on your PAN card.

Online application of PAN is not yet updated with the above change but physical application has been updated.

Dated: 16/05/2014

How to apply for PAN online?
Bank Notes issued prior to 2005 to be withdrawn- RBI Advisory....

22nd January 2014

Today RBI has advised that after 31st March 2014, it will withdraw all bank notes issued prior to 2005. So from 1st April 2014 all will be required to approach their bank for change of old currency notes. Banks will provide exchange of old currency notes to their customers.
RBI also stated that it is easy to identify the notes issued prior to the year 2005 as these do not have year of printing on them at the reverse side of the note. RBI also requested to the public not to panic. RBI  has requested all to cooperate in this withdrawal process.

Source: RBI press release 2013-14/1472 dated 22/01/2014

Good News for salaried people as Interest rate on Provident Fund increased to 8.75%....

On Monday 13th January 2014, the Retirement Fund body (Employee's Provident Fund Organisation-EPFO) increased the interest rate on  provident fund from 8.50% to 8.75% for the financial year 2013-14. 
CBDT now watchful on HRA claims and making HRA rules more stringent.....

With a latest circular on deductions and exemptions from salary income, for the financial year 2013-14, CBDT is tightening its hands on tax evaders. Now for HRA claims it is made compulsory to declare the PAN of land lord to the employer; if total rent paid for the year is more than Rs. 100000. In cases where PAN of landlord is not available, we need to submit a declaration to this effect from the landlord along with his name and address to the employer. Earlier this limit to declare Pan was Rs. 180000, which is now substantially reduced to Rs. 100000.

Source: Circular No. 08/2013, by CBDT  dated 10th October 2013
Note that exemption from filing of return for salaried having total income upto Rs. 500000/- is not applicable now & special counters are set for filing paper returns upto Rs. 500000/-...........

The CBDT vide its earlier notifications had exempted salaried employees having total income upto Rs. 5 lakhs including income from other sources upto Rs. 10,000/- from the requirement of filing return of income for assessment year 2011-12 and 2012-13 respectively. The exemption was available only for the assessment year 2011-12 and 2012-13. This exemption is not available from Assessment Year 2013-14 (financial year 2012-13) onwards.

From 25 th July to 31 st July 2013 (Except 27 th and 28 th July being holidays), Special Return Receipt
Counters (FOR SALARIED TAX PAYERS)will operate at Pratayakshar Bhawan, Civic Centre, Minto Road,
New Delhi this year. (Instead of Pragati Maidan and Mayur Bhavan as were done in the past).

Source: Press release dated 22/07/2013
Purchasing a house property costing Rs. 50 lacs or more will be tedious now....

Purchasing a house costing Rs. 50 lacs or more will be tedious now. By virtue of Section 194 IA buyer need to deduct TDS @1% from total consideration and deposit the same electonically with government with in 7 days of the end of the month of deduction. He shall also furnish a challan cum statement in Form 26QB electronically with in 7 days from the end of the month of deduction. 26QB is updated on TIN website.

Good part. No need to obtain a TAN. A certificate of tax deduction in Form 16B will be required to be issued with 15 days of the due date of submission of Form 26QB. Form 16B the certificate of tax deduction will be generated and downloaded from the web portal.

Source: Income Tax Notification issued on 31st May 2013 at New Delhi
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