0 INCOME TAX FORMS EDITABLE FREE DOWNLOAD

Dear friend,
All income tax forms in Pdf format is given below .Though all the forms in PDF format yet they can be filled and print out can also be taken out from these forms .but filled form can not be saved means only blank form can be saved .The above rule is applicable on all forms except Income tax return form which can not be filed .Though I have ITR form in word format which is given in the link below .To download these forms right click on the link and use option "save target as" option in right click menu.
If you reading this post through mail then you have to visit the blog site to download the forms
(DOWNLOAD ITR forms in word format ay 2009-10)

TAGS:FILLABLE INCOME TAX FORMS,EDITABLE INCOME TAX FORM,INCOME TAX FORMS WHICH CAN BE FILLED,FORM IN WORD FORMAT,INCOME TAX FORM FREE DOWNLOAD ,INCOME TAX FORM WHICH CAN BE EDITED.

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0 AMENDMENTS TO FINANCE BILL(2) 2009

Dear Friends,

After debate on Finance Bill 2009 .In reply to question and queries raised during the Debate on the bill Finance minister has amended few provisions of the Finance Bill 2009(2).The major of these are Given below.The original proposal related to direct tax is available here in PPT

  1. New services Under the service tax act and scope of the services changes in case of earlier services will be applicable from 01.09.2009 .This is due to trade bodies , associations demand for time to adjust the accounting and software.(the list of new services is available here)
  2. Repairs and maintenance of road exempted from service tax net with immediate effect.Earlier department has come with a innovative clarification on this subject and taxed few type of services under service tax related to Repair & maintenance of road (Latest clarification is here)
  3. 80 E (deduction on Interest on study loan) is available to parents and person himself but now it is proposed to be available to Legal guardian also.
  4. Time period to avail deduction u/s 80(IA)(4)(iii) Industrial parks development ended on 31.03.2009 has been extended to 31.03.2009
  5. 80(IB) extended to natural gas bock commercial production from AY 2010-11
  6. Interest subsidy to House loan @1% if house is upto 20 lakh and loan is upto 10 Lakh for one year .Provision of 1000 crore created for this subsidy.
  7. Section 80(IB) (10) will be available to housing project approved between 01.04.07 to 31.03.2008 if complete on or before 31.03.2012.
  8. 80(I B) 11A will be available for business of preserving ,processing, packaging of meat products and poultry , marine and dairy products.
  9. 80U limit enhanced from 50000 to 75000 and 75000 to 100000.
  10. Tax code will be available for discussion by 20.08.2009.

Read Full text of the reply from below.Kindly wait for load.You may also download the same "more" menu.Feed readers Kindly visit this link


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0 NEW RETURN TO BE FILLED BY ALL GOVT ACCOUNTS OFFICER

A New quarterly return has been started by the Income Tax Dept FOR:

PERSON LIABLE TO FILE THIS RETURN

--All Accounts Officers (AOs) in Government Department(s)(STATE/CENTER GOVT )
--Who process the bills prepared by Drawing and Disbursement Officers (DDOs),
-- And deposit TDS/TCS by adjustment of Book Entry,on those who deposit tax deducted/collected through bank ,this scheme does not apply.

FREQUENCY

-- To be Filed quarterly
-- Separate return for tds on salary deduction,tds on non salary deduction,tds on non salary non resident and one return for tcs.

Format
-- electronic(MANDATORY)

Name of the scheme:

EELECTRONIC TDS/TCS Book Adjustment Form (e-TBAF).

TBAF in excel(this is detail of form only not return prepration software)

DETAIL OF SCHEME

--In case of Central Government,

To be furnished by the Accounts Officer (AO) on the basis of the bills submitted by the Drawing and Disbursement Officers (DDOs) under his control.

--In case of State Government,

To be furnished by the Zonal Accounts Officer (ZAO) on the basis of the details of the tax transferred by the Drawing and Disbursement Officers (DDOs) as provided to him by the Accountant General of the State. In case one Zonal Accounts Officer (ZAO) is responsible for multiple states, he shall furnish separate e-TDS/TCS Book Adjustment Form (TBAF) for each state.


whether it can be filed on existing tan or new other type of account required

No,this return is not be filled but to be filled on new a unique seven digit Accounts Officer Identification Number (AIN) which is to be allotted by the Directorate of Income Tax (Systems), Delhi, to every AO. Each AO will be identified in the system by this number.
Each DDO will be identified in the system by a Tax Deduction and Collection Account Number (TAN). This number is allotted by Income Tax Department.

The list of Drawing and Disbursement Officers (DDOs) associated to a specific AO shall be intimated by him to the DIT (Systems), Delhi. The AO shall also intimate to the DIT (Systems),, any addition / deletion of Drawing and Disbursement Officers (DDOs) associated to him.. The Accounts Officer (AO) shall give details of only those DDOs who are associated to him.

HOW CAN APPLY FOR AIN
In order to obtain AIN, an AO is required to send his details together with the details of the DDOs associated with him to the ‘Directorate of Income Tax (Systems), at ARA Centre, Ground Floor, E-2, Jhandewalan Extension, New Delhi-110055. This information is required to be sent as per Annexure III to the e-TBAF manual.

CORRECTION OF RETURN
In case of an error in the original e-TBAF statement, an AO shall be allowed to furnish a correction statement to rectify the same.

e-TBAF file preparation utility
NSDL e-TBAF Preparation Utility


JRE (Java Run-time Environment) [versions: SUN JRE: 1.4.2_02 or 1.4.2_03 or 1.4.2_04 or IBM JRE: 1.4.1.0] should be installed on the computer where e-TBAF Preparation Utility is being installed. JRE is freely down loadable from http://java.sun.com/ and http://www.ibm.com/developerworks/java/jdk or you can ask your computer vendor (hardware) to install the same for you.

File Validation Utility(FUV)

After preparation of file you can verify correctness of data filled (format) by this utility ,can be downloaded free from here

instruction to install FUV(PDF)

How /WHERE it can filled.

--This return can be filled through tin facilitation centers(tin-fc)
COMPLETE LIST OF TIN-FC
-- Return is to be filled on cd or floppy along with statement statistics report generated by FUV.
--To be signed by Accounts Officer,by higher officer of Accounts Officer if Accounts Officer Is himself a DDO.
--Tin-fc will issue prn(provision receipt number)

Faq by tin-nsdl can be downloaded from here(86kb)
SOURCE :TIN-NSDL
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0 2 Crore Returns pending for processing ?!!!

The Income Tax department(I-T department) had more than 2.35 crore tax returns pending for processing at the beginning of this financial year, the Rajya Sabha was informed today. "There was a pendency of 2,35,74,618 income-tax returns for processing u/s 143(1) of the Income Tax Act 1961, as on April 1, 2009," Finance Minister Pranab Mukherjee told the Rajya Sabha in a written reply. On a query that if there is a system of periodical special drives to dispose of the pending returns, Mukherjee replied, "There is no such practice..." However, the process is a continuous activity and is regularly monitored at various levels through monthly reports, he added. Also, the I-T department has decided to move towards centralised mass processing of returns. For the purpose, the consolidation of regional databases into single national database was completed in December last year, he said. To another question in the Rajya Sabha, Minister of State for Finance S S Palanimanickam said that there have been cases of purchasing insurance policies by payment of large amount of cash and the investigations have been taken up regarding the same. However, there is no provision of re-examining assessees based on income criterion, in appropriate cases the assessments are reopened under the provisions in the Income Tax Act, the Minister said.

other Interesting factors about Indian income Tax(not part of reply)

  • Total Individual tax payers in India 3.20 Crore (in USA  5.00 crore)(source ET)
  • Peak Rate of Income Tax in various countries(source ET)
    • India-30%
    • US-35%
    • UK-40%
    • Japan-40%
    • Germany-45%
    • China-45%
    • Russia-13.5%
    • Brazil-27.5%
  • No of person filed return of income tax between 1 crore to 5 crore 
    • 2008-09 AY =26275
    • 2006-07 AY =15743
  • Net direct tax collections during first three months of the present fiscal (up to June 2009) stood at Rs.59,465 crore, up from Rs.57,373 crore in the same period last fiscal, registering a growth of 3.65 percent. Growth in Corporate Taxes was 3.31 percent (Rs.35,709 crore as against Rs.34,566 crore), while Personal Income Tax (including FBT and STT) grew at 4.38 percent (Rs.24,564 crore as against Rs.22,782 crore). Lower growth in net tax collection was mainly on account of higher tax refund outgo of 52.01 percent at Rs.17,600 crore in the present quarter as against Rs.11,578 crore in the first quarter last fiscal.
  • Fringe Benefit Tax (FBT) recorded a negative growth of 7.56 percent (Rs.1,031 crore as against Rs.1,115 crore) and Securities Transaction Tax (STT) declined by 9.90 percent (Rs.1,462 crore as against Rs.1,623 crore) compared to the corresponding period last fiscal.Net collections during the month as well as TDS growth, however, remained positive.
  • Net collection during June 2009 Rs.35,307 crore compared to net collection of Rs.34,533 croreduring June 2008. Growth in Corporate TDS was 12.1 percent (Rs.19,584 crore againstRs.17,477 crore last year) and non-government PIT TDS growth was 12.4 percent (Rs.21,188crore against Rs.18,849 crore last year).
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0 Document Identification Number by Income Tax department

I have seen that CBDT or tax authority always  makes rules for tax payers but this time they have come up with rules which is applicable for themselves .It is self regulation measure which is help full in curb the Inspector raj in income tax department and further reduce the role of middle man and create a transparent atmosphere.

what is this step/rule.???

The rule is that Income tax department will  Allot of Document Identification Number(DIN) on each communication made within or with the assesse(taxpayer)both incoming and outgoing letter .DIN will be generated/alloted through computer.

The new Section 282B of the Income Tax Act reads as,

(1) Every income-tax authority shall allot a computer generated Document Identification Number in respect of every notice, order, letter or any correspondence issued by him to any other income-tax authority or assessee or any other person and such number shall be quoted thereon.

(2) Where the notice, order, letter or any correspondence, issued by any income-tax authority, does not bear a Document Identification Number referred to in sub-section (1), such notice, order, letter or any correspondence shall be treated as invalid and shall be deemed never to have been issued.

(3) Every document, letter or any correspondence, received by an income-tax authority or on behalf of such authority, shall be accepted only after allotting and quoting of a computer generated Document Identification Number.

(4) Where the document, letter or any correspondence received by any income-tax authority or on behalf of such authority does not bear the Document Identification Number referred to in subsection (3), such document, letter or any correspondence shall be treated as invalid and shall be deemed never to have been received.”
After application of this section the Income tax dept will allot DIN(document identification Number) on each incoming or outgoing letter/Notice.so after this either of the party can not deny existence of the letter/memo/notice.This system will be beneficial for most of Honest tax payers .
The entire office administration will automatically improve if you have control over the inward and outward correspondence. And the government seems to be serious – that's why they have inserted these provisions in the Act – instead of issuing circulars which are anyway going to be flouted with impunity.
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0 DOWNLOAD INCOME TAX CALCULATOR FY 09-10 FOR SALARIED PERSONS

Finance Minister has changed tax rates for individual and HUF .Though the changes is minor but not many person want to remember the same and want tax calculator by which they can easily calculate tax liability .I have prepare a small calculator for HUF and Individual ,which you have already used online and now also available for download .In this calculator only one field is required to be filled i.e Net taxable income though this calculator is handy for many but many of you demanded a comprehensive calculator Like Y nitya has prepared for salaried employee ,Friends with you wishes I am able to amend this calculator and have inserted new tax rates of FY 2009-10 in the old Y Nitya calculator .so now it is fully customised for Financial year 2009-10 and available for download .

Main features of the calculator are


  1. Provision to customise your salary detail and your pay component and facility to rename the same
  2. calculation for common taxable /exempted allowances Like HRA,transpot allowance,education allowance,
  3. Valuation of common perquisites like rent free House
  4. Valuation of perks value in concession interest Loan
  5. Valuation of car facility By employer
  6. Validation check in most of the field
  7. Upper lower limit for many fields so that Input data is correct.
  8. calculation of NSC interest
  9. Calculation of short term/long term profit on shares
  10. Complete Instruction

If you have any query or found any error than please put it in comment section or mail me at guptarajin at the rate of yahoo.co.in
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0 FBT ABOLISHED MEANS EMPLOYEES PAY TAX MORE

Finance Minister has abolished the FBT(fringe benefit tax ) wef AY 2010-11means from current financial Year ,A welcome step by the Govt but bad news is that now perquisites is now taxable in employee's hands which has been shifted earlier to FBT .There are few important points which relates to this amendments which I will try to cover in following paragraph.
  1. Applicable date:The finance Minister proposed to abolish this clause from AY 2010-11(FY 2009-10) and onwards assessment year .But many assesses have already deposited the FBT advance tax on 15 June ,2009 for the FY 2009-10.
    • what will be the fate of the advance FBT they have deposited?
    • will they have to file their return of FBT for Fy 2009-10 to claim the refund?
    • Can Advance FBT deposited be adjusted against Advance Income tax at the time of second quarter advance tax .All these issues has not been addressed at all.
  2. ESOP taxable in employee hand :Consequent to the withdrawal of FBT, following changes have been introduced in taxation of salary income.Presently, FBT is levied on the employer in respect of any allotment or transfer (directly or indirectly) of any specified securities or sweat equity shares to its employee (including former employee). Now, such benefit will be subject to tax as a perquisite only in the hands of the employee as under:
    • The perquisite value taxable in the hands of the employee will be the difference between the FMV of the specified security or sweat equity shares on the date on which the option is exercised and the amount actually paid by/ recovered from the employee. FMV will be computed in accordance with the method to be prescribed.
    • Presently, in case of shares/ debentures/ warrants acquired under an ESOP prior to enactment of FBT, the value considered for computing perquisite in the hands of the employee is considered as cost of acquisition(for calculating capital gain) on sale. Now, FMV considered for computing the perquisite value will be considered as cost of acquisition on sale of such specified security or sweat equity shares.
    • Now employee have to pay tax at on FMV-amount paid for ESOP on the date of option even though he had not realized any thing means has not sold any share or shares may have lock in period before which it can not be sold.
  3. Contribution to superannuation Fund:Presently ,conrtribution by the employer to an approved superannuation Fund for employee in the excess of Rs 100000 for each employee is subject to FBT in hands of employer .Now such excess will be taxable perquisite in the Hand of the employee
  4. Other perquisites:Further it is proposed in the budget that more fringe benefit which was liable to FBT or may not even liable to Fbt will be prescribed .These new List (yet to come) will also be included in salary income as perquisites.However some of the Fringe benefit autometically now included in salary as these expenses has not been included on the condition that employer has paid FBT on that expenses.Read section 17(2)(iv) with rule 3(7)
    • Meals ,Lunch and refereshments to employees subject to some exemption as prescribed
    • Travelling ,Touring,accommodation
    • Gift ,voucher Token
    • Credit card payment by employer on behalf of employee
    • Club expenses.
Please comment
budget related posts
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0 SERVICE TAX CHANGES IN BUDGET 2009

Amendments proposed by Finance Bill, 2009 SERVICE TAX


(A)     Following New Services are brought under Service Tax Net,
(i)                  Transport of goods by rail,
Transport of Goods through Rail
Presently, transportation of goods in containers by rail, by other than Government railways is taxable under Section 65(105)(zzzp) of the Finance Act, 1994 (‘the Finance Act') since 2006. It is now proposed to impose service tax on goods transported by railways, whether in containers or otherwise.After application of this clause the Freight on all good through railway will be cost more .



(ii)                Transport of,
·                    Coastal goods; or
·                    Goods through national waterway; or
·                    Goods through Inland water
(iii)               Service in relation to Cosmetic surgery or Plastic surgery
This service proposes to cover cosmetic surgery and plastic surgery undertaken to preserve or enhance physical appearance or beauty. However, any surgery undertaken to restore or reconstruct one's anatomy or bodily functions affected due to congenital defects, developmental abnormalities, degenerative diseases, injury or trauma is outside the scope of this service.
(iv)              Services in relation to Advice, Consultancy or assistance in any branch of law, provided by any business entity not being an individual
Service provided in the field of law except in case where service provider or service recipient is an individual. Thus tax would be limited to services provided by a business entity to another business entity and services provided by an individual advocate either to an individual or even to a business entity and by a corporate legal firm to an individual would be outside the purview of taxable service. Further service of appearance before any court of law or any statutory authority is also outside this levy.
Proposed clause is



“(zzzzm) to a business entity, by any other business entity, in relation to advice, consultancy or assistance in any branch of law, in any manner:
Provided that any service provided by way of appearance before any court, tribunal or authority shall not amount to taxable service.
Explanation.—For the purposes of this sub-clause, “business entity” includes an association of persons, body of individuals, company or firm, but does not include an individual;”


The date of effect of the above new services will be Notified in the notification.(not known yet)



(B)     Following amendments have been proposed in relation to existing service



  • (i) The definition of stock-broker has been amended so as to exclude the sub-broker from its net. Hence, sub-broker shall not be liable to service tax anymore. 
The words ‘sub-broker' has been deleted from charging provisions of the Finance Act, which defines ‘stock broker' .  This has been necessitated as in terms of the amended provisions of SEBI Rules, sub-broker has no independent role as he is not authorized to raise any bill on the clients.




  • (ii) The definition of “Information Technology Software Services” has been amended to replace the word ‘acquiring’ with ‘providing’. This amendment is being given retrospective effect, 

Exclusion clause in this service has been modified to provide that it would apply only if the activity results in manufacture of ‘excisable goods'. The impact of this change would be that even if a process of manufacture is undertaken for the customer, but the resultant product does not fall under the category of excisable goods, such as alcoholic beverages, service tax would be attracted.
  • (iii) The definition of “Business Auxiliary Services” has been amended so as to provide that only those processes which result in the manufacture of excisable goods, are excluded from the purview of Business Auxiliary Services
Exclusion clause in this service has been modified to provide that it would apply only if the activity results in manufacture of ‘excisable goods'. The impact of this change would be that even if a process of manufacture is undertaken for the customer, but the resultant product does not fall under the category of excisable goods, such as alcoholic beverages, service tax would be attracted.




(C)    The following amendments has been proposed in the rules and notifications
(1)        Rule 6(3) of Cenvat Credit Rules, 2004 has been amended to prescribe that the provider of both taxable and exempted services, and who does not maintain separate books of accounts relating to inputs, shall pay an amount equal to 6% of the value of exempted services instead of 8%.
(2)        Rule 3(5B) of Cenvat Credit Rules, 2004, is being amended to provide that a service provider shall pay back the amount of credit taken on inputs/capital goods fully written off.
(3)        Explanation provided in the Works Contract Rules, 2007 is being modified so as to allow the benefit of optional composition only to such works contracts where the tax payer declares the entire value of goods (whether supplied under any other contract for a consideration or otherwise) and services used in the execution of works contracts as the ‘gross value charged’ for the works contracts. This restriction shall not be applicable to current works contracts where either the execution has commenced or any payment has been made on or before 07.07.2009.



23/2009 - Service Tax, dated 07-07-2009
Amends the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007.
(D) The following other important amendments have been proposed :

Exemption Scheme

(1) To simplify the Scheme of Zero-rate export and refund of service tax paid after clearance of exportable goods from the factory, Following major changes have been proposed;



  • (i) Services received by exporters from goods transport agents and commission agents, where the liability to pay service tax is ab initio on the exporter, would be exempted from service tax. Thus, there would be no need for the exporter to first pay the tax and later claim refund. 
  • (ii) For other services received by exporters, the exemption would be operated through the existing refund mechanism based on self-certification of the documents where such refund is below 0.25 per cent of fob (free on board) value, and certification of documents by a Chartered Accountant for value of refund exceeding the above limit. 

(2) Exemption from levy of service tax on the membership and other fees colleted by Export Promotion Councils and Federation of Indian Export Organization (FIEO) till 31st March, 2010



16/2009 - Service Tax, dated 07-07-2009
Exempts the taxable service, referred to in sub-clause (zzze) of clause (105) of section 65 of the Finance Act, provided or to be provided by the certain associations, from the whole of the service tax leviable thereon under section 66 of the said Finance Act.
(3) Exemption from levy of service tax to the passenger vehicle run by private undertakings: In order to bring uniformity with the vehicles having “Stage Carriage Permit” and run by State Government, which are exempted from service tax, the vehicle having “Contact Carriage Permits” and run by private undertakings are also being exempted from service tax.
Update on 27.07.2009
EXEMPTION TO MAINTENANCE OF ROADS

NOTIFICATION NO. 24/2009 - SERVICE TAX, DATED 27-7-2009

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service, referred to in sub-clause (zzg) of clause (105) of section 65 of the Finance Act,1994, provided to any person by any other person in relation to management, maintenance or repair of roads, from the whole of the service tax leviable thereon under section 66 of the said Finance Act.




20/2009 - Service Tax, dated 07-07-2009
Exempts the taxable service referred to in sub-clause (n) of clause (105) of section 65 of the Finance Act. 
Download Budget Related Notification 



23/2009 - Service Tax, dated 07-07-2009
Amends the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007.
22/2009 - Service Tax, dated 07-07-2009
Amends the Taxation of Services (Provided from outside India and Received in India) Rules, 2006.
21/2009 - Service Tax, dated 07-07-2009
Amendments in Notification No. 1/2002 – Service Tax, dated the 1st March, 2002.
20/2009 - Service Tax, dated 07-07-2009
Exempts the taxable service referred to in sub-clause (n) of clause (105) of section 65 of the Finance Act. 
19/2009 - Service Tax, dated 07-07-2009
Exempts the taxable service, referred to in sub-clause (zm) or (zzk)  of clause (105) of section 65 of the Finance Act.
18/2009 - Service Tax, dated 07-07-2009
Exempts the taxable service  pertaining to sub-clause  (zzb) and (zzp) of clause (105) of section 65 of the Finance Act. 
17/2009 - Service Tax, dated 07-07-2009
Supersedes notification No.41/2007- Service Tax, dated the 6th October, 2007.
16/2009 - Service Tax, dated 07-07-2009
Exempts the taxable service, referred to in sub-clause (zzze) of clause (105) of section 65 of the Finance Act, provided or to be provided by the certain associations, from the whole of the service tax leviable thereon under section 66 of the said Finance Act.
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0 ADVANCE TAX LIMIT HIKED-BUDGET 2009

This financial year (FY 2009-10)onwards, you won’t have to pay advance tax if your tax liability is less than Rs 10,000 annually. The finance minister has rationalised the advance tax limit in the Union Budget. According to the Budget memorandum, the threshold for this tax has been doubled from Rs 5,000 to Rs 10,000. The limit has been hiked “with a view to providing for inflation adjustment”, says the memorandum. The Rs 5,000 limit has been in existence for the past 13 years. It was fixed in the 1996 Budget.

  • Advance tax applies to individuals whose incomes are not subject to tax deduction at source (TDS).
  • This directly impacts the self-employed in the lower tax slab. This tax is also payable on income on account of interest, tuition fee, rent, trading of securities and consultancy work. 
  • Advance tax is paid every quarter.
  •  If not paid on time, it attracts a penalty at an annualised rate of 13 per cent. 
Let’s look at what is the difference the hike, included under the existing provisions of Section 208 the Income-Tax Act, has made to individuals. Considering the earlier exemption of Rs 1.5 lakh and Rs 1 lakh deductions,U/S 80C a person was liable to pay advance tax if he was earning a salary of more than Rs 2.75 lakh. This year onwards, advance tax has to be paid by people earning over Rs 3.10 lakh. The salary level increases as the exemption limit is now Rs 1.6 lakh. “This move impacts individuals in the lower income group. For those in the high income slab, this is immaterial.

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0 BOOK PROFIT-SALARY TO PARTNERS AFTER BUDGET 09

In all most all the partnership ,provision for salary has been included and decided with mutual consent .But as per Income Tax Act ,full amount of salary is not allowed as expenses in profit & loss account but salary is restricted to % of profit before salary to the partner.There are some conditions also which are to be complied to claim deduction of salary as expense in P & L account of partnership firm.
Conditions are defined in section 40(b) of the income tax act.
  1. Salary should be paid to working partner.
  2. Salary must be written/authorised by the Partnership deed
  3. Salary should be related to the period after the partnership deed date.
  4. Salary must be with in limit of % of Book profit.
Salary here means: salary ,commission ,remuneration (or any name whatever name called)
Bold
Now detail of each condition.
1. Working partner: salary to sleeping partner is not allowed .and working partner definition has been given in explanation 4 of the section 40(b)
  • working partner means an individual who is actively engaged in conducting the affairs of the business or profession of the firm of which he is a partner
From above definition it is clear that " full time" attendance to any or all of the tasks of the partnership .
2.Salary must be written/authorised by the Partnership deed:To claim the expense of salary of partner in p& L salary should be authorised by the partnership deed and it should also be according to the conditions/terms defined in the partnership deed.
  • Clause in partnership should be clear and amount should be defined.
  • Board has issued a circular also related to clause in partnership deed for salary to partners
Whether for assessment years subsequent to assessment year 1996-97, no deduction under section 40(b)(v) will be admissible unless partnership deed either specifies amount of remuneration payable to each individual working partner or lays down manner of quantifying such remuneration

1. The Board have received representations seeking clarification regarding dis allowance of remuneration paid to the working partners as provided under section 40(b)(v) of the Income-tax Act. In particular, the representations have referred to two types of clauses which are generally incorporated in the partnership deeds. These are :

(i) The partners have agreed that the remuneration to a working partner will be the amount of remuneration allowable under the provisions of section 40(b)(v) of the Income-tax Act; and

(ii) The amount of remuneration to working partner will be as may be mutually agreed upon between partners at the end of the year.

It has been represented that the Assessing Officers are not allowing deduction on the basis of these and similar clauses in the course of scrutiny assessments for the reason that they neither specify the amount of remuneration to each individual nor lay down the manner of quantifying such remuneration.

2. The Board have considered the representations. Since the amended provisions of section 40(b) have been introduced only with effect from the assessment year 1993-94 and these may not have been understood correctly the Board are of the view that liberal approach may be taken for the initial years. It has been decided that for the assessment years 1993-94 to 1996-97 deduction for remuneration to a working partner may be allowed on the basis of the clauses of the type mentioned at 1(i) above.

3. In cases where neither the amount has been quantified nor even the limit of total remuneration has been specified but the same has been left to be determined by the partners at the end of the accounting period, in such cases payment of remuneration to partners cannot be allowed as deduction in the computation of the firms income.

4. It is clarified that for the assessment years subsequent to the assessment year 1996-97, no deduction under section 40(b)(v) will be admissible unless the partnership deed either specifies the amount of remuneration payable to each individual working partner or lays down the manner of quantifying such remuneration.

Circular : No. 739, dated 25-3-1996.
The above circular is very clear so ,from ay 1996-97 onwards amount should be defined in the partnership deed.
3.Salary should be related to the period after the partnership deed date: The salary as per partnership deed should be after the partnership deed.If payment is related to period earlier than the date of partnership deed ,then it will be disallowed as exp.
4.Salary must be with in limit of % of Book profit.: As per section following % has been defined with in which salary can be claimed for partners.% chart is given below
THE ABOVE RATES HAS BEEN PROPOSED TO BE CHANGED FROM 01.04.2010 means from Assessmemt year 2010-11 or financial year 2009-10 AS UNDER

  •  Common rate for both type of Firm whether covered under 44AA or not 
New Rates proposed in Budget 2009
  • On the First three lakh of the Profit or In case of Loss: 150000 or 90 % of profit which ever is more
  • On balance profit:60% of the profit


Profession notified under section 44AA
  • legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration ,profession of authorised representative, the profession of film artist (actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screen play writer, dialogue writer and dress designer),Profession of Company Secretary,Profession of Information Technology.
Calculation Of book Profit.
  1. Take profit as per P& L account.
  2. Add back salary given to partners if debited in p& L earlier.
  3. Make adjustment for expenses allowed/disallowed as per section 28- 44D.
  4. If expenses /Income of other head like house property or income from other sorcse ,capital gain has been debited /credit then reverse back the such amount from profit & loss account.
  5. As the depreciation b/f is covered under section 32(2) ,so adjustment should be made for b/f depreciation to calculate the book profit but adjustment can be done only upto maximum of profit of current year before depreciation minus b/f loss of the previous years .
suppose
Profit as per P & L = 220850
Depreciation =111474.00
Net profit after depreciation =109376
salary of partner given =108000

Now salary allowed as per section 40(b) is given below
Book profit=109376

  • If firm is covered under 44AA(profession prescribed):

  1. On first 100000=90% of 100000=90000
  2. On balance 9376 @ 60%=5626
Total allowed=90000+5626=95626
  • if firm is not covered under above:any other firm


  1. On first 75000=90% of 100000=67500
  2. On (109376-75000=34376) @ 60%=20986
Total allowed :67500+20986=88486
Please comment.
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0 DIRECT TAX CHANGES IN BUDGET-2009(06.07.09) -PPT

Check the budget proposals at a Glance in the PPT given below.& give Your comments in comment column.Tax calculator after tax changes in personal income tax is available here and New tax salbs also given in the below link
Tax calculator for fy 09-10 and Revised Tax slabs after budget


download above PPT now
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0 NEW TAX SLABS,NEW TAX CALCULATOR AFTER BUDGET 2009

In Budget 2009(presented on 06/07/2009) personal income tax rates has been changed by the Finance Minister and all Individual and Huf will gain from1030 Rs and senior citizen will gain for 1545 rs .But for Income above 10 lakh relief is big as the 10 % surcharge has been abolished.We have Created a small calculator in which u calculate tax for individual as general,huf,Senior citizen,Women.In this calculator u will also know how much benefit u will get from budget presented by Parnav MukherJee on 06/07/2009 .There are Two sheets in the Folowing excel sheet
Sheet 2009-10Fy shows tax after budget and
Sheet 2008-09 Fy shows tax as per old rate .Hope you will found them in order

TAX RATES AFTER BUDGET 2009 PRESENTED ON 06/07/2009 FOR INDIVIDUALS IS GIVEN BELOW,NEW INCOME TAX SLABS


Download Direct tax changes in Budget Section wise with Date of Effect PDF 
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0 20 ANS HELPFUL IN FURNISHING INCOME TAX RETURN

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0 RAILWAY BUDGET 09-10 HIGHLIGHTS

HIGHLIGHTS OF RAILWAY BUDGET 2009-10

     “Inclusive growth”    and expansion of rail network        to reach development to every
corner of the country is core to developmental approach.
     Economically unviable projects need to be viewed with                     social perspective being
economic necessity for backward areas and under privileged.
     Expert committee to advise on           innovative financing and        implementation of such
projects.
Service to the Passengers
     Priority will be given to effect perceptible improvement in 
  •  Passenger  Amenities
  • Cleanliness
  • Quality of Railway catering 
  • Safety and Security and
  • Punctuality 
  • With focus on strict monitoring
     Extensive availability of Janata Khana, national and regional cuisines.
     50 stations to be developed as world class stations. 
     375 stations to be upgraded as ‘Adarsh Stations’ with basic facilities including drinking
water, adequate toilets, ladies dormitories etc.
     Multi-functional complexes to be constructed at 50 railway stations serving centres of
pilgrimage, tourist and industry. To have shopping facilities, food stalls, budget hotels
etc.
     ‘Onboard house keeping scheme’ to cover 200 additional pairs of trains; ‘improved
linen management’ with modern mechanized automated laundries.
     Expanding facilities like ramps, special signage, lifts, escalators, special coaches for
physically challenged and aged persons.
     Onboard availability of doctors in long-distance trains being considered; ambulance
services to be provided in seven cities to start with.
     On-board infotainment services to be provided on important long-distance intercity
trains.
     Toilet facilities to be introduced in DEMU/MEMU trains with journey time more than
2 hours.
     1000 new PRS locations to be opened; UTS services to be expanded from 5000 to 8000
locations.
     Automated ticket vending machines to be installed at 200 large and medium sized
stations.
     Taking ticketing to ‘Maa Mati Manush’ – grassroot, through issue of computerized
tickets at Post offices and ‘Mushkil Aasaan’ mobile ticketing service vans. 
     Air-conditioned double decker coaches for inter-city travel to be introduced.
Safety and Security
     Timely track renewal, modernization of signals, use of digital ultrasonic flaw detectors
etc.
     Integrated Security Scheme to be introduced at 140 vulnerable and sensitive railway
stations.
     Women RPF squads for security of women passengers
Staff Welfare
     6,560 staff quarters to be constructed in 2009-10.
     Indoor stadia to be developed in major railway divisions and zones.
     Increased contribution of Rs 350 per employee to Staff Benefit Fund to continue for
a year, with    Rs 100 per employee for women empowerment, vocational training of
physically and mentally challenged wards especially girl child, and higher education for
girls. 
     Scholarships for higher education of girl child of group D staff.
     Proposal to open      7 nursing colleges     on railway land at Delhi, Kolkata, Mumbai
(Kalyan), Chennai, Secunderabad, Lucknow and Jabalpur on PPP model to facilitate the
wards of railway employees in finding vocational avenues.
     Burn Units at major Railway hospitals.
     Metro Railway Hospital to be upgraded to 75 beds.
     Medical colleges planned to be attached to existing railway hospitals at 18 locations
through PPP mode.
     Dormitories for railway families accompanying patients to be provided at 16 hospitals
having 150 beds and above.
     Policy on Railway Recruitment Boards to be reviewed.
     Special recruitment drive for filling vacancies of Scheduled Castes and Scheduled Tribes
and Physically Handicapped quota.
Freight and Parcel Business
     Premium service for container movement with assured transit time being considered.
     Private ownership      of special purpose rolling stock for commodities and private
operation of freight terminals will be encouraged. 
     Mega logistic hubs being planned alongside Eastern and Western Dedicated Freight
Corridors. 
     Kisan-Vision project – Running special trains from production clusters to consumer
centers for perishable products like fruits and vegetables to reduce wastage and also for
village handicraft, cottage industry & textile products to increase outreach and access to
new markets for rural produce.  Temperature controlled cargo centres to be encouraged.
  
     Premium Parcel Services named Faster Parcel Services on pilot basis on three routes to
run with guaranteed transit time from dedicated terminals. 
Landmark initiatives
     Dedicated Freight corridors declared ‘Diamond Rail Corridors’. 
     Foundation being laid for development of            
Eastern Industrial Corridor alongside theEastern Freight Corridor.
  • Railways’ land banks to be productively utilized to catalyze development in this corridor.
  • Investment in rolling stock production and assembly facilities proposed for development of rail based industrial cluster drawing upon advantage of proximity to mines, labour force and metal works market.

     Setting up of a new factory at Kanchrapara-Halisahar Railway Complex with annual
capacity of 500 EMU/MEMU and Metro coaches in Joint Venture/Public-Private
Partnership mode.
     Proposal to initiate action for setting up 1000 MW power plant with Ministry of Power,
at Adra, in under developed tribal area.
     State of the art training facilities proposed at Dankuni for young artisans and
supervisors, thereby contributing to national talent pool. 
Financial Performance in 2008-09 
   Freight loading at 833 million tonnes (MT) grew @ 5% on previous year. 
   Traffic receipts also increased by 11.4% to reach Rs 79,862 cr.
   Cash surplus before dividend Rs 17,400 cr after disbursing Rs 13,600 cr towards
implementation of 6th Central Pay Commission.
   Railways paid full dividend liability of Rs 4,717 cr to Government.
   Investible surplus of Rs 12,681 cr generated.
   Annual Plan expenditure was Rs 36,336 cr.
Budget Estimates 2009-10
   Freight loading targeted at 882 MT – an increment of 49 MT; number of passengers
likely to grow by around 6%.
   Gross Traffic Receipts (GTR) estimated at Rs 88,419 cr i.e. Rs 8,557 cr more than 2008-
09.
   Ordinary Working Expenses budgeted at Rs 62,900 cr to cover the full year impact of VI
CPC and the payment of 60% arrears due in 2009-10. 
   The dividend payable to General Revenues kept at Rs 5,479 cr.
   Budgeted Operating Ratio 92.5%.
Concessions
     ‘Izzat’- A new scheme for travel with dignity. Issue of concessional MST of Rs 25 for
people, with monthly income upto Rs 1,500, in unorganized sector, for travel upto 100
km.
     Press correspondents to get ‘photo identification cum credit cards’ on certification of
PIB and other competent authorities instead of existing system of coupons. 
   concession of 30% to increase to 50% for Press Correspondents
   50% concession for travel with spouse also to be given once a year.
     The existing     student concession to be extended to students of Madrasas, higher
Madrasas and senior Madrasas.
     Concessional MST available to students in Kolkata will be applicable for travel in Metro
Rail Kolkata also. 
Special Trains
     ‘Only ladies’ EMU trains to start in Delhi, Chennai and Kolkata sub-urban  during
office rush hour.
     ‘Yuva Trains’ - New low-cost, air-conditioned, seated accommodation trains, dedicated
specially for young generation and low-income groups.
   To run from rural hinterland to major metros/cities; fare to range from Rs 299
upto 1500 km to Rs 399 upto 2500 km.
   Weekly service on pilot basis to be introduced within 3 months between Mumbai
to Delhi and Delhi to Kolkata.
     ‘Duronto trains’ - for the first time new Non-stop, point to point train services. Starting
with 12 trains. 
Other New Train Services
     57 new train services to be introduced.
     Extension of 27 trains also envisaged.
     Frequency of 13 trains to be increased.
Annual Plan 2009-10
   Plan outlay is Rs 40,745 cr. Increase of Rs 2,840 cr on Interim Budget.
   New lines outlay - Rs. 2,921 cr ; increase of 166% on interim budget 
   Gauge conversion - Rs 1,750 cr. – increase of 24% on interim budget 
   Passenger amenities - Rs 1,102 cr - 119% increase on interim budget excluding
PPP provision, which is unlikely to materialize
   Staff Quarters - Rs 335 cr - increase of 49% on interim budget 
   Staff Amenities - Rs 424 cr- increase of 79% on interim budget
   Acquisition of 18,000 wagons in 2009-10 against 11,000 in 2008-09.
   Additional budgetary support of Rs. 1,949 cr. sought for 11 national projects. 
   Feasibility study for energy efficient rail based system to provide connectivity to
suburban system in Kolkata, Mumbai and Chennai. 
   Proposals for better integration of passengers’ movement in Kolkata suburban area. 
   Quazigund-Anantnag New Line to be completed by August, ’09. 
     Creation of      Northeast Rail Development Fund under consideration for timely
completion of national projects in N.E. Region.
     New proposals for better rail connectivity proposed to be processed which include 53 for new lines, 3 for gauge conversion works and 12 for doubling. 
Other important announcements
     Setting up of an expert committee headed by Shri Sam Pitroda to suggest innovations
to utilize optic fibre cable network of Railways and take information technology to door
steps in remote areas. 
     Project Monitoring Committee for developing mechanism to avoid slippage in project
delivery.  Special monitoring for National Projects.
     Railways to come out with        white paper on organizational, operational and financial
status based on last five years performance and develop Vision-2020 with long and short
term strategy and plan of action. 
   Modernization of select        railway printing presses. Offer for takeover of heritage
institution Basumati Sahitya Mandir, for revival.
   Takeover of Units of Burn Standard and also Braithwaite under consideration. 
   Revision in Tatkal Scheme to make it more user friendly. Advance booking period
reduced. Minimum charge reduced to Rs. 100. 
   No increase in passenger fares and freight tariffs.
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