Pranav Goel and Associates, Chartered Accountants

24/06/2015

Reminder Notice:

ITR forms for FY 2014-15 have been issued by govt.
Plz file your ITR before due date (31.08.2015) in order to avoid interest and penalties.

12/06/2015

Public Provident Fund (Amendment) Scheme, 2014

The Scheme introduced by the National Savings Organization in 1968 to mobilize small savings. The Scheme offers an investment avenue with decent returns coupled with income tax benefits. Salient features of the Scheme are as follows:

1. INVESTMENT LIMITS - With effect from August,2014 a minimum of Rs.500.00 subject to a maximum of Rs.1.50 lac per annum may be deposited. The subscriber should not deposit more than Rs.1.50 lac per annum as the excess amount will neither earn any interest nor will be eligible for rebate under Income Tax Act. The amount can be deposited in lump sum or in a maximum of 12 installments per year.

2. DURATION OF SCHEME - Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.

3. RATE OF INTEREST - 8.70% per annum with effect from 01.04.2013. Interest will be paid on 31st March every year. Interest is calculated on the minimum balance between 5th day and end of the month.

4. LOANS AND WITHDRAWALS - Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates.

5. TAX BENEFITS - Income Tax benefits are available under Sec 80 C of IT Act. Interest income is totally exempt from Income Tax. Amount outstanding to the credit is fully exempted also.

04/06/2015

Circular No. 184/3/2015-ST

Dated the 3rd June, 2015

Subject: Clarification on rate of service tax on restaurant service

Valuation of services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess having the facility of AIR CONDITIONING or CENTAL AIR-HEATING in any part of the establishment, is determined as provided in rule 2C of the Service Tax (Determination of Value) Rules, 2006.

In the said rule, service portion as a part of the activity, at a restaurant has been specified as 40 percentage of the total amount charged for such supply.

In Budget, 2015, no change has been made in abatement and the rate of service tax on the abated value has been increased to 14% with effect from 1st June, 2015.

Therefore, effective service tax rate would be 5.6% (40% of 14%) of the total amount charged. Hence, with the increase in the applicable rate of service tax from 12.36% (including education cesses) to 14%, the effective rate on such establishments has increased from 4.944% to 5.60% of the total amount charged.

03/06/2015

Some important changes in Income Tax w.e.f. 01.06.2015 :

1. Bank/ Post Office to deduct TDS on RD also if interest more than 10000/- Per Annum.

2. Every transaction in real estate be made by cheque if 20000/- or more, purchase of fridge, TV, Car, can be made in cash or cheque but if more than Rs. 1 Lakh then PAN will be compulsory.

3. Payment to transporters exceeding 30000/- Per annum TDS to be deducted if the transporter is having more than 10 vehicles.

4. Payment made to NRI/ foreign co furnish form No. 15CA & 15CB.

5. U/s 200A IT Dept can impose fee for late filing of TDS Return @ 200/- Per Day.

02/06/2015

ITR FORMS SIMPLIFIED

NEW ITR - 2A TO COME - DUE DATE EXTENDED TO 31.08.2015

Forms ITR 1, 2 and 4S for Assessment Year 2015-16 were notified on 15th April 2015 (15.04.2015). In view of various representations, it was announced that these ITR forms will be reviewed. Having considered the responses received from various stakeholders, these forms are proposed to be simplified in the following manner for the convenience of the taxpayers:-

1). Individuals having exempt income without any ceiling (Other than agricultural income exceeding Rs. 5,000) can now file Form ITR 1 (Sahaj). Similar simplification is also proposed for individuals/HUF in respect of Form ITR 4S (Sugam).

2). At present individuals/HUFs having income from more than one house property and capital gains are required to file Form ITR-2. It is, however, noticed that majority of individuals/HUFs who file Form ITR-2 do not have capital gains. With a view to provide for a simplified form for these individuals/HUFs, a new Form ITR 2A is proposed which can be filed by an individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income.

3). In lieu of foreign travel details, it is now proposed that only Passport Number, if available, would be required to be given in Forms ITR-2 and ITR-2A. Details of foreign trips or expenditure thereon are not required to be furnished.

4). As regards bank account details in all these forms, only the IFS code, account number of all the current/savings account which are held at any time during the previous year will be required to be filled-up. The balance in accounts will not be required to be furnished. Details of dormant accounts which are not operational during the last three years are not required to be furnished.

As the software for these forms is under preparation, they are likely to be available for e-filing by 3rd week of June 2015. Accordingly, the time limit for filing these returns is also proposed to be extended up to 31st August, 2015 (31.08.2015). A separate notification will be issued in this regard.

19/05/2015

The increase in Service Tax Rate from 12.36% to 14% will come into effect from 1st June, 2015.
(Notification No. 14/2015-Service Tax dated 19th May, 2015)

14/05/2015

Brilliant session at Rudra Continental Hotel today. Congratulations to all CA's for their efforts in making it happen.

Speakers:
CA Dharmendra Srivastava - Service Tax
CA Ankur Bhushan Agarwal - Appellate Proceedings
CA Umesh Garg - CA Profession in today's world

07/05/2015

Lok Sabha, on May 6, 2015 has passed the much awaited Constitutional (122nd Amendment) Bill, 2014 on Goods and Services Tax (GST) with 2/3rd majority.

05/05/2015

TAX PLANNING THROUGH HUF (HINDU UNDIVIDED FAMILY)

HUF is a good tax saving tool as it is regarded as a separate legal entity under the tax law and also assessed to tax separately as a distinct legal person.

This implies that a person can file two income tax returns, one in his personal individual capacity and one in the name of his HUF.

Benefit of dividing his taxable income between two entities and hence, he can claim double deductions and expenses in both capacities.

For e.g. at present, the tax free income in India is Rs. 250,000 per annum. An individual can thus claim a minimum of Rs. 500,000 as total exempt tax free income, (Rs. 250,000 in his personal and an equal amount in his HUF return).

In addition to the basic exemption, he can claim other specific exemptions in both capacities provided under sections 80C, 80CCA, 80CCB, 80D, 80DD, 80DDB, 80G, 80GG, 80 GGA and the rebate under section 88.

09/04/2015

Admit Cards for May 2015 exams released. Get it from:
http://icai.nic.in/

02/04/2015

The rate of Service Tax will continue @12.36%. The increase in service tax rate from 12.36% to 14% is yet to be notified.

24/02/2015

http://taxguru.in/finance/personal-accounts-balance-sheet.html .LH8T5jOt.gbpl
Start your book keeping.........we are just one call away!!

Can you answer these questions easily? What is your net worth? How much you have invested in Immovable Property? What is your shareholding? What is your loan outstanding? How much have you advanced...