Friday, April 26News That Matters

Year: 2016

May312016 by wealth18.comNo Comments

No TDS for PF withdrawals of up to Rs 50,000

News, PF, Taxation
The government has now changed the rule on  TDS deduction on PF withdrawal. Now, no tax would be deducted at source for PF withdrawals of up to Rs 50,000 from June 1 2016. So no TDS if your withdrawal is upto Rs 50000. The Finance Act , 2016 has amended section 192A of Income Tax Act, 1961 to raise the threshold limit of PF withdrawal from Rs 30,000 to Rs 50,000 for Tax Deducted at Source (TDS)," the notification stated. The provision will come into effect from June 1, 2016. Earlier in the budget, the government had introduced the proposal to deduct TDS on PF withdrawals in order to discourage pre-mature withdrawal and to promote long term savings. Current Applicable provisions TDS shall not be deducted in case of  1) if employee withdraws PF after a period of five years  2) transfer o...
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May252016 by wealth18.comNo Comments

Home Loan Tax Benefits – Section 24, 80C, 80EE

Featured, Taxation
Buying a house without home loan is distant dream for most of the people.  But even if you have required funds to buy house, taking home loan can be tax efficient. You can save significant amount of tax on the principal repayment of home loan as well as Interest paid on home loan. In this post, I will try to explain the tax benefits associated with home loan. Section 80C – Deduction upto Rs 1.50 lakh for Principal repayment Under Section 80C, you can claim deduction upto Rs 1.50 Lakh by way of investment in eligible items – Home loan repayment is one of the eligible items.  Read more on 80C deductions The deduction is only for residential house property and not for commercial property. It is available only for purchase or construction of a house and not for renovation, additions or ...
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May72016 by wealth18.comNo Comments

Now prevalidate your bank account for online ITR filing

News, Taxation
The Income Tax department has launched another option for online validation of tax returns and to enhance paperless regime of filing the annual IT returns.  This new option is -  Bank account-based validation system for filing e-ITRs.  This option is helpful for taxpayers who donot have or use net banking facility.  Electronic Verification Code (EVC) can be generated by pre-validating your bank account on the e-filing website.  Punjab National Bank (PNB) is the first bank to do so and other banks are also "expected to launch this facility" for those taxpayers who have not availed e-banking facility. The facility will be available on the official e-filing portal of the department- https://incometaxindiaefiling.gov.in/ .    This will work similar to the One Time Password ( OTP) verification...
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May72016 by wealth18.comNo Comments

10% dividend tax only on dividend income above Rs 10 lakh

Taxation
The new 10% Dividend Tax will be payable only on dividend income over and above Rs 10 lakh threshold in a year, according to an amendment to the Finance Bill 2016 approved by Lok Sabha. It is clarified that tax shall be chargeable on dividend income only to the extent it is in excess of Rs 10 lakh in aggregate as received from a domestic company or companies. This essentially means, tax payers whose dividend income crosses Rs 10 lakh would now have to pay an additional dividend tax on the excess income besides the dividend distribution tax being paid by the company/companies declaring such dividends. This amendment will be effective for the assessment year 2017-18 and subsequent assessment years.
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May42016 by wealth18.comNo Comments

New Income Tax form 12BB for claiming HRA, LTA, 80C deductions

Taxation
CBDT vide its notification no 30/2016 dated 29-04-2016 has inserted new rule 26C in the Income tax rules and notified form 12BB for furnishing to the employer. The income tax department has come out with a standard Form 12BB for salaried taxpayers to claim tax deduction on leave travel allowance concession (LTA/LTC), house rent allowance (HRA) and interest paid on home loans. claiming tax deduction under Chapter VI-A. (that includes popular 80C deduction) Sl. No. Nature of claims Evidence or particulars 1 House Rent Allowance. Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh. 2 Leave travel concession or assistance. Evidence of expenditure. 3 Deduction of interest under t...
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May32016 by wealth18.comNo Comments

Parag Milk Foods IPO Details & Review – Should you invest in it ?

Stocks
Parag Milk Foods that own brands like 'Gowardhan' and 'Go' brands of milk products is ready to hit the market with its initial public offering (IPO) on 4th May 2016. Update:  Parag Milk IPO is extended till Wed (11-May) and the IPO band is revised to Rs 215-227 Issue Details IPO Open : 4th May to 6th May 2016    (closing date extended to 11-May) Issue Price band: Rs 220 - Rs 227 per share   (revised to Rs 215 - 227) Issue Size - Rs 325 crore Market lot : 65 shares and in multiples of 65 shares Background: Incorporated in 1992, Parag Milk Foods Ltd is Pune based dairy-based branded food producer. Company is involve in collection, distribution of milk and producing dairy-based branded consumer products including cheese, ghee, whey proteins, paneer, curd, yoghurt, milk powders and dair...
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Apr302016 by wealth18.comNo Comments

How to pay TDS on Property (Form 26QB & 16B)

Taxation
From June 2013, when a buyer buys immovable property costing more than Rs 50lakhs, he has to deduct TDS @1% when he pays the seller.  Read more details in my other post - TDS on buying/selling of property Buyer has to deduct TDS @1% on the entire sale amount (if the property value is more than Rs 50 lakhs) This TDS has to be deposited along with Form 26QB within 7 days from the end of the month in which TDS was deducted. After depositing TDS to the government, the buyer is required to furnish the TDS certificate to the seller. This is available around 10-15 days after depositing the TDS. Thus for paying TDS the seller is required to obtain Form 16B and the buyer is required to obtain Form 26QB.   It is important that you follow the steps properly.  Many taxpayers are receiving...
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Apr302016 by wealth18.comNo Comments

Received notice from the income tax department for non-filing of Form 26QB (TDS on property)

Taxation
Taxpayers are receiving notice from Income tax department for non filing of Form 26QB which is for TDS deducted when buying property. The income tax department has received Annual Information Return (AIR) submitted by registrar/sub-registrar, that you have done a property transaction exceeding Rs 50lakhs. Buyers of property must deduct TDS from payment made to seller, if the sale price exceeds Rs 50lakhs. TDS has to be deducted @1% at the time of making payment to the seller. (as per section 194IA of the income tax act) - Read my previous post on - TDS deduction on Property purchase TDS which is deducted has to be deposited within 7 days from the end of the month in which deduction is made. Form 26QB must be submitted. Read my other post on - How to file or pay TDS on property (FOrm 26QB ...
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Apr302016 by wealth18.comNo Comments

Inoperative PF accounts will earn interest from April 1, 2016

News, PF
From April 1 2016,  EPFO has again decided to give benefit of accrual of interest on the inoperative PF accounts. The board has reversed the decision taken in 2011. This will benefit a large section of the estimated nine crore inoperative accounts of subscribers switching jobs. EPFO has estimated that over Rs 30,000 crore is stuck in these inoperative accounts. Inoperative EPF accounts are those where there has been no contribution from either the employee or the employer for 36 months. The decision not to give interest on these accounts was taken in 2011 to persuade employees to withdraw their money or merge it with active accounts. However, it is not clear whether the members will get the interest from 2011 to 2016 or not?
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