0 Service Tax on Commercial Rent Held Unconstitutional

The Delhi High Court has today struck down the levy of service tax on renting of immovableproperty as "unconstitutional", while deciding 26 writ petitions of different petitioners, by acombined order. The division bench of the Delhi High Court comprised of Mr. Justice BadarDurrez Ahmed and Mr. Justice Rajiv Shakdher observed that service tax shall not be levied onrenting of immovable property.

Alishan Naqvee, Advocate, LexCounsel Law Offices, who represented his clients in two of thepetitions disposed off today, tells that the category of "renting of immovable property service"was introduced by the Finance Act of 2007. This, in effect brought renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course offurtherance of business and commerce, within the service tax net with effect from June 1,2007. This new levy severely impacted business models across India as most of the rentarrangements did not even stipulate it beforehand.

The businesses across India opted to en masse challenge the constitutionality of levy of servicetax on rent, on the primary grounds that renting does not involve any service, and the CentralGovernment is not empowered to tax consideration for transfer of rights in immovable property, being a state subject as per the Constitution of India. Few High Courts, including the High Court of Mumbai, Delhi, Gujarat, Andhra Pradesh, Kolkata and Chennai reportedlygranted interim reliefs to the petitioners from payment of service tax until final disposal of theirmatters. The stays were however granted subject to undertakings by the petitioners, mainlytenants, to deposit the service tax amount with the Government if the tax was ultimately heldconstitutional. The Delhi High Court however is the first High Court to deliver the final orderin the matter that would have persuasive value for the other High Courts.

The detailed order of the Delhi High Court is expected to be available within the next couple ofworking days. One issue that needs to be seen is whether the Delhi High Court has expresslylimited the applicability of its judgment to its territorial jurisdiction. Notably, while grantinginterim orders, the Delhi High Court had expressed that the stays would be operative within theterritorial jurisdiction of the Court.
Consequently, a number of petitioners, having operations in multiple states, were constrainedto knock at the doors of the other High Courts.
To avoid multiplicity of litigation, the Union of India preferred a transfer petition to the Supreme Court of India seeking transfer of all writ petitions pending before different HighCourts of India, to the Delhi High Court for single window adjudication.
It is open for the Government to prefer an appeal before the Supreme Court of India, challenging the decision of the Delhi High Court. The judgment however delivers great relief to the business by helping liquidity in the current times.
Source: Free Press Release
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0 Fifth Pay Commission Punjab Report submitted

Fifth pay commission report has been submitted to Punjab Govt after approval from Election commission to do so .The highlights of the report and whole report can be downloaded from the link given below


  1. Read Highlights of the report and download Report
  2. Calculate your New Pay and arrears according to Pay commission report given on 20.04.2009
  3. Pension calculator Fifth pay commission available here 
  4. Fit menT chart 
  5. New Pay bands 
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0 NEW RPU 1.7 ETDS RETURN AND FVU 2.126 RELEASED

Nsdl has released a new etds return preparation utility (RPU) version 1.7 yesterday.This utility is to be used for preparing etds return for forth quarter of 2008-09 Financial year. Though Old return are also can be filled through this utility (q1-q3,2008-09).To validate this new RPU ,new File validation utility(fvu)has also been released i.e 2.216 .

This utility contain following
  1. Etds return software form 24Q(for salary)
  2. Etds Return Form 26Q (tds other than salary)
  3. Etds return 27Q( non resident)
  4. Etcs return 27EQ(for tax collected at source)
  5. inbuilt File validation utility version 2.216(dated 13.04.2009)
  6. Correction return software for 24Q, 26Q, 27Q, 27EQ
This new utility is not a part of new TDS system  which consist of  Form 17,Form 24C and other new form and this will work only for TDS/TCS deducted upto 31.03.2009. For new System new RPU and FVU is awaited .

Installation process is given below
  1. First download File from link given below
  2. Then unzip the file downloaded in a directory/folder 
  3. Do not delete/move any file from unzipped folder  and do process given as under.other help menu is available in file itself
RPU 1.7 (VB Based with inbuilt FVU version 2.126) for Quarterly e-TDS/TCS statements released (April,13,2009)
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0 WHICH ITR FORM IS APPLICABLE ON MY INCOME???

Dear friends ,
some of readers are asking me which form is applicable for them .Income tax department has prepared a very brief tabulated chart for income wise detail for individual and huf in first part and second part for Firms, Associations of Persons (AOP), Body of Individuals (BOI), Local Authority, Companies, Trusts, Fringe Benefit Tax (FBT) Return.so these detail will be helpful to assessee to select the correct ITR form for their respective income details.if after reading this chart given below some query remains in your mind then kindly discuss it in comment form given below

Which Form is Applicable
For Individuals, HUF
S.NoFor ÞIndividualIndividual, HUF
Source of Income ßITR-1ITR-2ITR-3ITR-4
1Income from Salary/Pension••••
2Income from Other Sources (only Interest Income or Family Pension)••••
3Income/Loss from Other Sources •••
4Income/Loss from House Property •••
5Capital Gains/Loss on sale of investments/property •••
6Partner in a Partnership Firm  ••
7Income from Proprietary Business/Profession   •
For Firms, Associations of Persons (AOP), Body of Individuals (BOI), Local Authority, Companies, Trusts, Fringe Benefit Tax (FBT) Return
S.NoFor ÞFirms,AOP,BOI, Local AuthorityCompaniesTrustsOnly FBT
Source of Income ßITR-5ITR-6ITR-7
#See Note		ITR-8
1Income / Loss from Other Sources•••
2Income / Loss from House Property•••
3Capital Gains / Loss on sale of Investments / Property•••
4Income / Loss from Business•••
5Fringe Benefit Tax••••
#Note: ITR-7 will not be available for e-Filing.
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ITR FORMS for ay 2009-10 is available for download at the following link in pdf format.

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0 NEW ITR FORM FOR AY 2009-10 PDF FORMAT


New Income Tax return forms has been Notified wide Notification Number 32/2009 dated 27/03/2009 for Ay 2009-10.New forms are not yet available for download but will be available soon on the Income tax deprt website .Last date to file Income tax return for Non tax audit cases is 31.07.2009 and for tax audit case 30.09.2009 for the assessment year 2009-10.The detailed Notification in this regard has been given hereunder for your ready reference.The New rules may be called a Income-tax (9th amendment ) Rules, 2009

There is an addition of field in TDS schedule for all the forms, where it asks UTN for every record. No other major changes found in the form till now.
Surprisingly, the Unique Transaction Number [UTN] is expected for deductions on or after April 1, 2009. But Providing in last year return is still a question. In respect of UTN, the forms says:
In order to enable the Income Tax Department to provide accurate, quicker and full credit for taxes deducted at source, the taxpayer must ensure to quote the Unique Transaction Number (UTN) in respect of every TDS transaction.  In general the UTN would be printed on the TDS certificate issued by the deductor.  However, in case it is not available on the certificate, the taxpayer should separately obtain the UTN either from the deductor or from the website of National Securities Depository Limited (NSDL) at Tin-nsdl.com
Income Tax Department is yet to give the more information on this.

Download Forms In PDF Format from links given below
ITR-1:For Individuals having Income from Salary/ Pension/ family pension & Interest 

ITR-2 :For Individuals and HUFs not having Income from Business or Profession
ITR-3:For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR-4:For Individuals & HUFs having income from a proprietory business or profession
ITR-5:For firms, AOPs and BOIs
ITR-6:FOR COMPANIES OTHER THAN COMPANIES CLAIMING EXEMPTION UNDER SECTION 11A
ITR-7:For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 13(4C) or section 139(4D). (Not available for e-Filing)
ITR-8:RETURN FOR FRINGE BENEFIT(FIL SIZE :77.7 KB)
ACKNOWLEDGMENT  FOR ALL ITR FORMS(FIL SIZE :28KB)
ALL ITR 1-8 IN ONE FILE.(FIL SIZE :2000.7 KB
Income-tax (9th Amendment) Rules, 2009

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NOTIFICATION NO. 32/2009
Dated: March 27, 2009
INCOME-TAX
SO. (E).- In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:
(.1) These rules may be called the Income-tax (9th Amendment) Rules, 2009.
(2) They shall come into force on the 1st day of April, 2009.
2. In the Income-tax Rules, 1962,
(a) in rule 12,-
(i) in sub-rule (1), for the words, figures and letters “on the 1st day of April, 2008″, the words, figures and letters “on the 1st day of April, 2009″ shall be substituted;
(ii) in sub-rule (5), for the words, figures and letters “on the 1st day of April, 2007″, the words, figures and letters “on the1st day of April, 2008″ shall be substituted;
(b) in Appendix- II, for Form ITR 1, Form ITR 2, Form ITR 3, From ITR 4, Form ITR 5, Form ITR 6, Form ITR 7, Form ITR 8, and ITR V, the following forms shall be substituted.



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0 ONLINE INCOME TAX RETURN POPULAR AMONG TAXPAYERS

Income Tax department has issued data for the E-filing of  Income Tax return e filled during the period 01.04.2008 to 31.03.2009.E filling return filled in the year 08-09 are 48.31 lakhs which is increase of 220 % as compared to return filled in 07-08 (21.93 lakh).ITR wise data for return filled online in 2008-09 and  2007-08 is given below for your reference.out of total return filed online only 17 % returns  are mandatory and 83 % are voluntarily filed as online.so online filing of return is now very popular among the persons.
Further 10% of total returns (4.36 lakhs)has been filed online in last three days of the financial years .
state wise data for e-filing has been given below.
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0 CLARITY ON NEW TDS FORM 17 AND NEW TDS RETURN

Dear friends,As i have informed you earlier that new Tax payment challan Form 17 and many other changes has been intruduced by Income Tax rules 8th amendment 2009 .Further Ministry of finance has clarified that the new challan is applicable on deduction made on or after 01.04.2009.In this post I am trying to clarify the issue related to these new system.



New Form Challan 17

  • Section wise challan: earlier we have to fill separate challan for deduction made under diffirent section now no need to do this .you can pay all the tax deducted in a period in a single challan .irrespective of  the tax has been deducted on salary or 194c or 194 J etc ,it can now be deposited in a single challan at a time.
  • TDS/TCS: TDS and TCS both can be deposited in a single challan at a time.
  • No need to differentiate between corporate deductee or no corporate deductee.
  • No need to give break up of basic tax ,surcharge or cess ,total figure is only required to be mentioned.
  • Information of deductee is also to be given in challan i.e Pan,Name, and tax deducted .
  • If deductee is more than 10 then details of deductees has to be uploaded with the challan.
  • challan can be deposited only through e payment and credit debit card option will also be allowed .
  • This facility is expected to start at Tin-nsdl site by the end of this Month as the tax deducted in the month of april 2009 is required to be deposited by 07.05.2009
Unique Transaction Number.
  • on successful uploading of the challan , acknowledgment will be generated and against each entry of deductee detail one unique transaction number will be given and pan number of the deductee is also verified and a status of pan verified yes /no will be given so that in case of incorrect pan or not verified pan ,deductor have a time to correct them while filing the tds return.
  • This unique transaction number is also required to be mentioned in form 16/16a and quarterly return 24Q,26Q etc.
Quarterly returns are now not quarterly.
  • Now no need to file quarterly return , quarterly.means deductor has to prepare the quarterly return in as earlier done on form 24 Q or 26Q etc but filing date is now annual only 15 June.Means quarterly return are now required to be filed annually or we can say form 24Q/26Q/27EQ etc is now annual Form though performa remain quarterly.
New Tax compliance return on 24 C 





New Quarterly return, Form 24C introduced with following contents.
b.      With the Deductor information, Form 24C should contain Details of TDS Compliances for 3 months separately and the Challan Identification Numbers/Amounts in that quarter.
c.       Details of TDS Compliances should contain the section wise (all)  information of Total Payment, Total amount eligible for deduction, Total amount considered for TDS at full rate, Amount of TDS at full rate, Total amount considered for TDS at lesser rate, Amount of TDS at lesser rate, Total TDS.
d.      The due dates are same as earlier quarterly returns.
Changes in TDS Certificates




1.       New Formats of Form 16 and 16A.
2.       These formats may be applicable for FY 2009-10 and above.
a.       Form 2008-09, the same earlier formats may continue as the data for new formats would be less. However a confirmation circular is expected from CBDT.
3.       The forms should contain the information of UTN against each payment shown in TDS certificate.
a.       UTN has to be mentioned, along with Gross amount paid and TDS amount.
b.      Date of Payment is not required. That means if a party payment is shown consolidate in monthly challan, a yearly Form 16A contains only 12 entries.
4.       Form 16A is section independent. It can contain multiple section related deductions.
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0 New TDS/TCS CHALLAN FORM 17 APPLICABLE FORM 01.04.2009

As I have informed you that new rules for TDS/TCS deposit 8th amendment dated 25.03.2009 has been issued in which it is mentioned that New TDS /TCS tax deposit challan is applicable from 01.04.2009.But question here arises that whether this challn is applicable for all the TDS/TCS deposited on or after 01.04.2009?


On this question Ministry of clarified that this Form 17 TDS/TCS challan form is applicable on payment of TDS/TCS  which is deducted on or after 01.04.2009.so tax deducted before 01.04.2009 challan form 281 remains applicable.


Further it has been clarified that detailed circular on new rules will be issued shortly by CBDT.


Ministry of Finance
Notification on TDS and TCS

The Board has amended the rules relating to Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) vide Notification No. S.O.858 (E) dated 25th March 2009.


In this context, taxpayers are informed that the new Form 17 (the challan for payment of TDS and TCS) is applicable only for payment of tax deducted or collected at source on or after 1st April 2009. Therefore, in respect of any TDS or TCS made before the 1st April, 2009, the payment will continue to be made to the
credit of the Central Government by using the challan in Form No. 281 (i.e. the old challan form) even after 31st March 2009. 


The Central Board of Direct Taxes will shortly issue a detailed circular on the amended rules relating to TDS and TCS.


BSC/BY/GN-105/09
dated :02.04.2009
Important Features Of the new Challan are given under(this is tentative list and as per my understanding ,detail will be available after circular from CBDT)
  1. As per new challan TDS/TCS can be deposited in one challan
  2. No need to file separate challan for each section .Means TDS /TCS deducted under various section can be paid in single challan
  3. No need for separate challan for Company and Non company deductees.
  4. As given above ,the form 17 is applicable on deduction made on or after 01.04.2009 ,and as per new rules deduction made in a month ,tds/tcs is payable with in week from the end of the month ,so we have a time to under stand the new form as the tax deducted in the month of April is payable upto 7th of may 2009 and till then things will be clear and by that time NSDL will also update the Form 17 and other issue related with that.so relax and wait.



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TDS/TCS depsoit 8th amendment dated 25.03.2009

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