Income Tax 2012-13 Archives - CENTRAL GOVERNMENT EMPLOYEES NEWS

Income Tax exemption limit should be raised to Rs 5 Lakh: Arun Jaitley

admin — Wed, 23 Apr 2014 16:42:45 +0000

Income Tax exemption limit should be raised to Rs 5 Lakh: Arun Jaitley

Arun Jaitley, one of BJP’s prominent leaders says that raising income tax slab to Rs 5 lakh will benefit more than thirty million people in the country. He also added that direct tax should be reduced, If the Income Tax limit is raised from Rs. 2 lakh to Rs. 5 lakh, 3 crore people will save Rs. 24 crore which will lead to a small impact of 1 to 1.5 per cent of the National Tax Fund.

All 100% of the Government employees pay taxes without fail, all the time. There is no doubt about it.

Each year, with Government employees losing about a month’s pay as taxes, the suggestion to raise tax slab to Rs. 5 lakh is a welcome move. But, since such ideas are being aired only around election time, they lose credibility.

It has almost become a routine for the Government employees to eagerly hope for a tax slab raise during each annual budget presentation, and be disappointed. There haven’t been any alternative savings options to avoid income tax this time also.

Those who had got employed after 2004 have no options to save and are paying income tax even for comparatively lower incomes.

Will this situation continue?
Only the new Government at the Centre will have the answer to this question.

Source: 90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/04/income-tax-exemption-limit-should-be.html]

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All tax payers to disclose their true income and pay appropriate taxes within the current financial year-Finance Minister

admin — Tue, 12 Feb 2013 16:18:44 +0000

All tax payers to disclose their true income and pay appropriate taxes within the current financial year-Finance Minister

Government Once again urges all Tax Payers to Disclose their true income and pay Appropriate Taxes within the Current Financial Year; Nodal Cell set up to Capture the Response and take Follow-up Action; an Online Monitoring System to Ensure Follow-up Action and Track Return Filing and Tax Payment of the Target Segment

The Union Finance Minister Shri P. Chidambaram has repeatedly emphasized that there is need for a non–intrusive tax administration to enable the tax payer to file his return and pay appropriate taxes.

In the statement made by the Revenue Secretary to the media on 10th December 2012, he had stated that there is no advantage in suppressing the true income or avoiding paying income tax that is due because, sooner or later, the information available with the Income Tax Department will lead the department to the doors of such persons.

The Directorate of Systems of the Income Tax Department has undertaken a business intelligence project to identify PAN holders who have not filed Income Tax Return and about whom specific information is available in 148 information codes of Annual Information Return (AIR), Central Information Branch (CIB) data and TDS/TCS Returns. Information in the Cash Transaction Reports (CTRs) of FIU-IND has also been included as part of this data matching exercise. This data analysis has identified target segment of 12,19,832 non-filers linked to more than 4.7 crore information records. Rule based algorithms have been used to identify high priority cases for follow-up and monitoring.

In the first batch, letters are being sent to 35,170 PAN holders by the Directorate of Intelligence and Criminal Investigation. The letter contains the summary of the information of financial transaction(s) along with a customized response sheet and seeks to know whether the person had filed his Income Tax return or not. A Nodal cell has been set up to capture the response and take follow-up action. There will be an online monitoring system to ensure follow-up action and track return filing and tax payment of the target segment.

The Government would once again urge all tax payers to disclose their true income and pay appropriate taxes within the current financial year.

PIB

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Income Tax Section 80-CCG : New Tax Saving Scheme ‘Rajiv Gandhi Equity Saving Scheme’ (RGESS)

admin — Sat, 01 Dec 2012 07:47:55 +0000

Finance Minister approves the Operational Features of the Rajiv Gandhi Equity Savings Scheme (RGESS)

The Union Finance Minister Shri P. Chidambaram approved a new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS),exclusively for the first time retail investors in Securities Market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh.

The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets, but also aims to promote an ‘equity culture’ in India. This is also expected to widen the retail investor base in the Indian securities markets.

Salient features of the Scheme are as under:

a. Scheme is open to new retail investors, identified on the basis of their PAN numbers. This includes those who have opened the Demat Account but have not made any transaction in equity and /or in derivatives till the date of notification of this Scheme and all those account holders other than the first account holder who wish to open a fresh account.

b. Those investors whose annual taxable income is ≤ Rs. 10 lakhs are eligible under the Scheme.

c. The maximum Investment permissible under the Scheme is Rs. 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year.

d. Under the Scheme, those stocks listed under the BSE 100 or CNX 100, or those of public sector undertakings which are Navratnas, Maharatnas and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the above companies would also be eligible under the Scheme. IPOs of PSUs, which are getting listed in the relevant financial year and whose annual turnover is not less than Rs. 4000 Crore for each of the immediate past three years, would also be eligible.

e. In addition, considering the requests from various stakeholders, Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible securities as their underlying and are listed and traded in the stock exchanges and settled through a depository mechanism have also been brought under RGESS.

f. To benefit the small investors, the investments are allowed to be made in instalments in the year in which tax claims are made.

g. The total lock-in period for investments under the Scheme would be three years including an initial blanket lock-in period of one year, commencing from the date of last purchase of securities under RGESS.

h. After the first year, investors would be allowed to trade in the securities in furtherance of the goal of promoting an equity culture and as a provision to protect them from adverse market movements or stock specific risks as well as to give them avenues to realize profits.

i. Investors would, however, be required to maintain their level of investment during these two years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year. The calculation of 270 days includes those days pursuant to the day on which the market value of the residual shares /units has automatically touched the stipulated value after the date of debit.

j. The general principle under which trading is allowed is that whatever is the value of stocks / units sold by the investor from the RGESS portfolio, RGESS compliant securities of at least the same value are credited back into the account subsequently. However, the investor is allowed to take benefits of the appreciation of his RGESS portfolio, provided its value, as on the previous day of trading, remains above the investment for which they have claimed income tax benefit.

k. For the purpose of valuation of shares, the closing price as on the previous day of the date of trading will be considered so that new investors are certain about their debits and credits into the account.

l. In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn.

Like all financial products which have reached out substantially to the retail investors (post office savings, life insurance policies etc) through tax benefits, this tax break for direct investment in equity is expected to substantially encourage the retail participation in securities market as well as to enhance their participation in the growth of Indian industry. Entry of more retail investors are expected to further deepen the securities markets as they bring in long-term stable funds, which can counteract the volatility created by the liquidity providers of the market. The Scheme, thus, also furthers the goal of financial stability and promotes financial inclusion. Since Exchange Traded Funds and Mutual Funds have also been brought under the Scheme, the Scheme should provide encouragement and re-assurance to the first time investors.

The broad provisions of the Scheme and the income tax benefits under it have already been incorporated as a new Section – 80CCG – of the Income Tax Act, 1961, as amended by the Finance Act, 2012.

Department of Revenue will notify the Scheme and SEBI will issue the relevant circulars to operationalize the Scheme in the next two weeks.

PIB

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INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 201 2-2013 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961

admin — Mon, 12 Nov 2012 18:45:47 +0000

INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 201 2-2013 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961

OFFICE OF THE CONTROLLER GENERAL OF DEFENCE ACCOUNTS

Ulan Batar Road, Palam, Delhi Cantt-110010

No.AN/XIV/14119/l.Tax-IX

Dated 09.11.2012

All the PCsDA /CsDA

(Through CGDA Mail Server)

SUBJECT : INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2012-2013 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT) Circular No.08/2012 [F.No. 275/192/2012—IT(B)J, Dated 05.10.2012 on the above subject is available on Income Tax Department’s website (http://law.incometaxindia.gov.in/DIT/Circulars.aspx).

The circular in ‘pdf’ format Is also available on Department of Revenue website http://dor.gov.in/othercirculars (Annual Circular of Deduction of Tax at Source-during the FY 2012-13). The subject circular may please be downloaded from the above websites for information, guidance and necessary action please.

sd/-

(Chitra Mahendran)

For CGDA

Source: www.cgda.nic.in

[http://cgda.nic.in/adm/tds201213.pdf]

The post INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 201 2-2013 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.