Tuesday, December 17, 2013

Get ready to pay more tax as new HRA exemption rule introduced

As per new circular of CBDT dated 10.10.2013 if you are a salaried and claiming HRA  exemption and the rent paid by you is more than Rs.1 Lakh per year then it is compulsory to provide PAN (Permanent Account Number) of your Landlord. Earlier the limit was capped Rs.15,000 per month as against the current limit of Rs.8,333 per month, This move will bring those landlords under income tax net who lease there space but don’t declare their income correctly.
 One has following options:
1) Provide landlord PAN 
2) Provide Declaration from Landlord with name, address & duly signed.
3) Find out a new space

This is done to collect more tax from service class and let corrupt people make more money.

Wednesday, May 16, 2012

HC upholds decision to quash land acquisation in Noida Extenstion

Bringing some relief to the lakhs of buyers who invested their money in Noida Extension and Greater Noida, the Allahbad High Court on Monday dismissed the review petition filed by farmers and Greater Noida Authority in the land acquisition case.

Farmers had challenged the Allahabad High Court decision of October 21, 2011. And now the court has kept that decision alive that the steps taken at the time of land acquisition were right.The court refused to quash the acquisition of the village land acquired by using the urgency clause. The Allahabad High court in its order passed on October 21, 2010, said, “No clearance has yet been obtained by the Greater Noida authority to draft its master plan-2021. Steps taken for land acquisition, development activities including creation of third-party rights were not in conformity with the NCR Planning Board Act, 1985.” 

After the Allahabad high court rejected the review petition of villagers in Noida Extension, a small section of farmers unhappy with the order went on a rampage targeting projects of several builders. Other farmers were, however, happy that the Allahabad high court had turned down the plea made by the Greater Noida Authority in its review petition to not dole out hiked compensation and developed plots to non-ancestral lands of villagers.

These farmers are greedy and the worth of their land was nothing if GNIDA had not acquired land and made roads, there were no bridges on Hindon river and the only way to reach here was from NH 24,  GNIDA had paid handsome compensation at the time of acquisition. Politicians have made the matter worse. Another Khoda is in making...

Wednesday, January 11, 2012

Success mantra

PhD is the new mantra for success.

It stands for be Passionate,feel Hunger for work or whatever you do and do it with Discipline! Follow the mantra and you are bound to succeed.

Benefit by staying focused on doing a great job -- rather than worrying about the next job, or the next promotion. Do a good job. Success and happiness will follow Inevitably

Saturday, May 21, 2011

Tips to reduce petrol bills

Motorists can make his/her drive pleasant experience in todays world of rising petrol prices. You cannot control the prices but there are ways to reduce burden on your pocket. Some tips to save petrol / diesel are
1)Increase vehicle efficiency by maintaining correct tyre pressure on regular basis.
2)Maintain speed with in correct gear. Don't rush maintain steady speed.
3)Lessen Air-conditioning use.
4)Turn Off your engine at signals.
5)Tune up engine by regular service.
6)Avoid traffic and throw away any unnecessary weight from your car.
7) Drive sensibly and enjoy life. Always have in mind that your loved ones are waiting for you at home.

Tuesday, May 10, 2011

Tax Ombudsman - new way for IT refund

The Tax Ombudsman is an independent body,independent of the jurisdiction of the Income Tax department. It has been empowered to settle grievances and take up matters to the highest authority.Ombudsman handles
a)Delay or discrepancy in tax refunds
b)Impolite behaviour of tax officials
c)Interest waiver
d)Issues relating to allotment of Permanent Account Number
e)Non-credit of tax paid.

For more details check

Saturday, July 25, 2009

Power of LOVE

In Love, one plus one becomes one, not two. In deep love, the twoness disappears, mathematics is transcended; it becomes irrelevant. Two persons are are no more two, they become ONE. They start feeling functioning as a single organic body. This is only the Power of LOVE.

In LOVE two souls start adding life to years rather than years to their life.

Thursday, July 9, 2009

All you wanted to know about GST

One of the biggest taxation reforms in India -- the Goods and Service Tax (GST) -- is all set to integrate State economies and boost overall growth.

GST will create a single, unified Indian market to make the economy stronger.

Finance Minister Pranab Mukherjee while presenting the Budget on July 6, 2009, said that GST would come into effect from April 2010.

The implementation of GST will lead to the abolition of other taxes such as octroi, Central Sales Tax, State-level sales tax, entry tax, stamp duty, telecom licence fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, et cetera, thus avoiding multiple layers of taxation that currently exist in India.

What is GST?

Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level.

Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain.

The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain.

Experts say that GST is likely to improve tax collections and boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax rate.

What are the benefits of GST?

Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimising exemptions.

It is expected to help build a transparent and corruption-free tax administration. GST will be is levied only at the destination point, and not at various points (from manufacturing to retail outlets).

Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is again taxed at the retail outlet when sold.

How will it benefit the Centre and the States?

It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax as it would promote exports, raise employment and boost growth. It will divide the tax burden equitably between manufacturing and services.

What are the benefits of GST for individuals and companies?

In the GST system, both Central and State taxes will be collected at the point of sale. Both components (the Central and State GST) will be charged on the manufacturing cost. This will benefit individuals as prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies.

What type of GST is proposed for India?

India is planning to implement a dual GST system. Under dual GST, a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of a transaction.

All goods and services, barring a few exceptions, will be brought into the GST base. There will be no distinction between goods and services.

Which other nations have a similar tax structure?

Almost 140 countries have already implemented the GST. Most of the countries have a unified GST system. Brazil and Canada follow a dual system where GST is levied by both the Union and the State governments.

France was the first country to introduce GST system in 1954.

Will this be an extra tax?

It will not be an additional tax. CGST will include central excise duty (Cenvat), service tax, and additional duties of customs at the central level; and value-added tax, central sales tax, entertainment tax, luxury tax, octroi, lottery taxes, electricity duty, state surcharges related to supply of goods and services and purchase tax at the State level.

What will be the rate of GST?

The combined GST rate is being discussed by government. The rate is expected around 14-16 per cent. After the total GST rate is arrived at, the States and the Centre will decide on the CGST and SGST rates.

Currently, services are taxed at 10 per cent and the combined charge indirect taxes on most goods is around 20 per cent.

Will goods and services cost more after this tax comes into force?

The prices are expected to fall in the long term as dealers might pass on the benefits of the reduced tax to consumers.

Why are some States against GST; will they lose money?

The governments of Madhya Pradesh, Chhattisgarh and Tamil Nadu say that the information technology systems and the administrative infrastructure will not be ready by April 2010 to implement GST. States have sought assurances that their existing revenues will be protected.

The central government has offered to compensate States in case of a loss in revenues.

Some States fear that if the uniform tax rate is lower than their existing rates, it will hit their tax kitty. The government believes that dual GST will lead to better revenue collection for States.

However, backward and less-developed States could see a fall in tax collections. GST could see better revenue collection for some States as the consumption of goods and services will rise.

How will GST be implemented?

The empowered committee is likely to finalise the details of GST by August. But States have to sort out several issues like agreement on GST rates, constitutional amendments and holding talks with industry associations. Experts feel the drafting of legislation and the implementation of law will take time.

What are the items on which GST may not be applied?

Alcohol, tobacco, petroleum products are likely to be out of the GST regime.