Withdrawal of Provident Fund may attract Income Tax. The Income Tax Department recently told EPFO (Employees Provident Fund Organisation) to deduct Tax (TDS) from the withdrawal amount, if the withdrawal happened before completing five years of subscription. Tax officials have cited a rule in the 1961 Income-Tax Act that taxes PF withdrawals by employees before completing five years of contributions into the EPF is taxable.
As we all know that Finance Minister has made amendment that all the individuals having income more than Rs.5 lakhs is required to file their income tax return for the assessment year 2013-14. Thus it increases the number of individuals who would be filing e-returns significantly. Due date of filing tax return is not far away so it’s time to revise the procedure of e-filing of tax return or learn the process of e-filing for first timers.
Income Tax department has released the ITR-5 Excel utility for ay 2013-14 ,which can be used to e file income tax return.
1.Assessment Year for which this Return Form is applicable
This Return Form is applicable for assessment year 2013-2014 only, i.e., it relates to income earned in Financial Year 2012-13.
2. Who can use this Return Form?
This Form can be used a person being a firm, LLPs, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form.
From assessment year 2013-14 onwards, where an assessee is required to furnish a tax audit report under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 12A(1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E or 115JB, he shall file the report electronically upto the due date of filing the return of income as stated in rule 12 of the income tax rules amended via notification no 42 dated 11/6/2013.
At present two options are available for tax payers to e-file ITR, either e-file ITR by affixing digital signature or without affixing digital signature. In first case there is no need to send ITR-V to the I-T department’s CPC, based in Bangalore but in the later case tax payer is required to take a print out of ITR-V and send it to the I-T department’s CPC, based in Bangalore within 120 days of e-filing, in case tax payer fails to do so, his/her return would deemed to be invalid return.
Income Tax department finally launched the efiling for ITR-4 form. The schema for software developers was also launched alongwith. Also that the ITR-5, ITR-6 and ITR-7 forms was launched in PDF format. The efiling is expected to be soon launched for these forms as well.
You can Download the above mentioned forms from below Links.
Strategy behind Dividend Stripping
Dividend stripping is a strategy to reduce the tax burden, by which an investor gets tax free dividend by investing in securities (including units), shortly before the record date and exiting after the record date at a lower price, thereby incurring a short-term capital loss. This short-term capital loss is compensated with the tax free dividend. Further the investor can set off such loss against capital gains – both short-term and long-term – as the law stands at present and can also carry forward the unabsorbed loss for set off in future years.
Information on Carbon Credit
One challenge facing the human race is that of GLOBAL WARMING. Global warming is the rise in the average temperature of Earth’s atmosphere and oceans. Carbon credits and carbon markets are a component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs). The goal is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less carbon intensive approaches than those used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere.
CBDT (Central Board of Direct Taxes) has notified the Cost Inflation Index (CII) for the Financial Year 2013-14 at 939 vide Notification no.40/2013[F.NO.142/7/2013-TPL]/SO 1464(E), Dated June 6, 2013.
Now Indexation of Cost of Acquisition and Cost of Improvement in Long Term Capital Gain Calculation is to be done by taking 939 as Index for Financial year 2013-14.
Income Tax Department vide notification no 39/2013 dated 31st May 2013 has released the provisions and rules related to section 194-IA i.e. TDS on transfer of certain immovable properties other than agriculture land whose value or consideration exceeds Rs. 50 lacs, regarding mode of deduction, time of deposition and issuance of TDS certificates.
May 31, 2013
All Scheduled Commercial Banks
Acknowledgement by banks at the time of submission of Form 15-G / 15-HAs you are aware banks are not required to deduct TDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules, 1962.
tax 'N' accounts people
Tarun Kumar Gupta
Life style Post