Monthly Archives: July 2015

Electronic Verification Code and its role in tax filings

Income tax department recently launched a new facility for electronic verification of e- filing with one-time password called as Electronic Verification Code for income tax payers which will in turn replace the process of sending of paper acknowledgement ITR-V to the CPC Bangalore. Now let us know about this EVC and how that helps the… Read More »

Electronic Verification Code (EVC) and multiple ways to generate EVC

Tax payers can generate Electronic Verification Code in many ways as directed by Central Board of Direct Taxes vide notification 2/2015 dated 13th July 2015. The new measures will eliminate the procedure to sending the physical copy of ITR V acknowledgment to CPC Bangalore. The EVC can be generated either of four ways mentioned below.    … Read More »

Few Minor Deductions

Few deductions related to specified illnesses to certain donations, that taxpayers unknowingly miss while filing the income tax return. Most taxpayers are familiar with the tax deductions under Section 80C and 80D. But there are several other deductions that a taxpayer can avail. Home loan processing fee and other charges, Home loan customers are aware… Read More »

Few smart steps for income tax return filing

The due date to file your income tax returns for the year ending 31st March 2015 approaching fast i.e. 31 August. Luckily, the revised forms are much easier than their earlier forms which had debatable provisions and compulsory disclosure of aboard trips and details related to dormant bank accounts. While you won’t have to fill… Read More »

Provident Fund Exemption’s

Provident funds schemes are categorized in the following types; Statutory Provident Fund Recognized provident fund Un-recognized provident fund Public Provident Fund The tax treatment of various items in case of different provident funds is as follows: Statutory Provident Fund Employer’s Contribution Employer’s contribution to such fund is not treated as income of the employee. Interest… Read More »

Tax Liability and Residential Status of Individuals

Residential status plays very significant role and according to the income tax law is very important, as income tax law makes a massive difference in computation of income for all residential statuses. There is difference in slabs, tds rates, deductions that can be claimed from income. The extent of income which is covered under the… Read More »

Extension of time limit to submit ITR-V

In exercise the power under clause (ii) of para 14 read with clause 7 of para 4 of Centralize Processing of Returns Scheme 2011, the CBDT thru Directorate of Income Tax (Systems) issued Notification no. 1/2015 under the CPC Scheme 2011 for extension of time limit for submitting the ITRV related to income tax returns… Read More »

Challan Correction Mechanism

On Line Tax Accounting System (OLTAS), every direct tax payments done are transmitted to tax information network on daily basis by all the collecting banks over data transmission process. In the digital world all most all the tax payments are done online but in cases tax payer uses traditional method of tax payment i.e. physical… Read More »

Cost Inflation Index (CII) and Capital Gains

Cost Inflation Index (CII) plays very important role in calculations of capital gains. Capital gain is calculated after deduction indexed cost of acquisition; once we apply the CII then the cost of acquisition becomes indexed cost of acquisition. Cost Inflation Index means such index which notified by the central government, having regard to 75% of… Read More »

Compliance Window Under Black Money Act

Finance Minister during his budget bill presentation makes a proposal for Black Money Act. The finance bill received Presidential assent and became law on 26th May 2015. The Black Money Act provides for separate taxation of undisclosed foreign income and assets. Harsh penalties and prosecution, including rigorous imprisonment up to 10 years and penalty equal… Read More »

Gratuity Exemption

If any Gratuity is received by any employee while in employment then it is fully taxable in the hands of employee. While if gratuity is received in case of death or retirement or resignation, then exemption is available up to the following limits. In case of Government employee – Any gratuity received by an employee… Read More »