The due date for filing income tax return and Fringe Benefit Tax return for all companies and such persons, who are required to get their accounts audited and working partners of such firm is being preponed from 31st October to 30th September. This provision shall be effective from 1st April, 2008 and accordingly returns for the assessment year 2008-09 shall now be required to be filed by 30th September. It is to be noted that a corresponding amendment in Section 44AB preponing the specified date, which requires the accounts to be audited before the specified date is not in the proposal. This appears to be an omission and may be rectified at the time of the passage of the Finance Bill. With the preponement of this date to 30th September, probably the issue of extending the due date because of the Diwali Festival coming in the last days of October will no longer be an issue and both the taxpayers and professionals will be able to enjoy Diwali Festival.
Finance Minister P. Chidambaram has included four new services under the tax net to marshal higher revenues while keeping the rates unchanged at 12 per cent for 2008-09.
The new services included for taxation are stock and commodity exchanges and clearing houses, asset management firms offering unit-linked insurance plan (ULIP) and customised software. The last among them being “the right to use goods, in cases where VAT in not payable.” Further the minister has revised the meaning of certain other categories of service providers such as money changers, persons running games of chance and tour operators using contract carriage vehicles were liable to pay service tax. Thereby, , purchase or sale of foreign currency, including money changing by an authorised dealer or an authorised money changer under banking and other financial service would be taxable services.The new services and changes are to be effective from a date to be notified after enactment of the Finance Bill 2008. Also, the threshold limit of tax exemption from the current level of Rs. 8 Lacs has been enhanced to 10 Lacs.
The new services included for taxation are stock and commodity exchanges and clearing houses, asset management firms offering unit-linked insurance plan (ULIP) and customised software. The last among them being “the right to use goods, in cases where VAT in not payable.” Further the minister has revised the meaning of certain other categories of service providers such as money changers, persons running games of chance and tour operators using contract carriage vehicles were liable to pay service tax. Thereby, , purchase or sale of foreign currency, including money changing by an authorised dealer or an authorised money changer under banking and other financial service would be taxable services.The new services and changes are to be effective from a date to be notified after enactment of the Finance Bill 2008. Also, the threshold limit of tax exemption from the current level of Rs. 8 Lacs has been enhanced to 10 Lacs.
The slabs for personal income tax have been revised with the exemption limit being raised from Rs 1.10 lakh to Rs 1.50 lakh, ensuring a minimum relief of Rs 4,000 for every assessee. The slabs of Income have been raised drastically.
Income upto Rs 1.50 lakh will attract no income tax. Income between Rs 1.50 lakh and Rs three lakh will attract a 10 per cent tax and incomes between Rs 3 lakh and Rs 5 lakh 20 per cent. Income above Rs five lakh will attract 30 per cent tax.
In the case of a female assessee, the exemption will be upto Rs 1.80 lakh from the existing Rs 1.45 lakh whereas senior citizen will now have the exemption limit of Rs 2.25 lakh from Rs 1.95 lakh.
An additional deduction of Rs 15,000 under Section 80D has been allowed to an individual who pays medical insurance premium for his/her parents. Senior Citizens Saving Scheme 2004 and the Post Office Term Deposit Account have been added to the basket of saving instruments under Sec 80(C) of the Income Tax Act.
For the purpose of rule 5 of the Service Tax Rules, 1994 as amended by notification no.45/2007 ST dated 28-12-2007, we are submitting the list of records maintained by as follows:
1. Register for Services being provided, realization of money against such services and payment of service tax in Excel Work Sheet.
2. Register for availing Cenvat Credit on input Services including details of bills, details of making payment against such bills and utilization thereof in Excel Work Sheet.
3. Register for availing Cenvat Credit on Inputs and Capital Goods, including details of bills, receipts of such goods, movement of such goods etc. in Excel Work Sheet.
4. Cash Book
5. Bank Books
6. General Ledgers
7. Trial Balance / Balance Sheet
8. Audit Report
9. Account Books are being maintained on Tally
1. Register for Services being provided, realization of money against such services and payment of service tax in Excel Work Sheet.
2. Register for availing Cenvat Credit on input Services including details of bills, details of making payment against such bills and utilization thereof in Excel Work Sheet.
3. Register for availing Cenvat Credit on Inputs and Capital Goods, including details of bills, receipts of such goods, movement of such goods etc. in Excel Work Sheet.
4. Cash Book
5. Bank Books
6. General Ledgers
7. Trial Balance / Balance Sheet
8. Audit Report
9. Account Books are being maintained on Tally
A World Bank-IFC-PricewaterhouseCoopers study called Paying Taxes, 2008, placed India 165 in the overall ranking. However, things are looking up for tax administration. The government has made e-payment of income tax for corporates and other large taxpayers like self-employed professionals mandatory from the next fiscal.
Taking the next logical step, the government has made e-filing of tax returns mandatory for this category of taxpayers. E-payment for indirect taxes like service tax, customs and excise has also taken off.
Improvement in tax administration has been high on the FM’s agenda. It is, therefore, no surprise that a large part of what he sought to achieve in the last budget has moved forward. However, while some initiatives have taken off successfully, others have been slower to get off the ground.
Extending the refund banker scheme to ensure that assesses receive their income-tax refunds in time is one such scheme.
Taking the next logical step, the government has made e-filing of tax returns mandatory for this category of taxpayers. E-payment for indirect taxes like service tax, customs and excise has also taken off.
Improvement in tax administration has been high on the FM’s agenda. It is, therefore, no surprise that a large part of what he sought to achieve in the last budget has moved forward. However, while some initiatives have taken off successfully, others have been slower to get off the ground.
Extending the refund banker scheme to ensure that assesses receive their income-tax refunds in time is one such scheme.
The proposed unified goods & service tax (GST) regime could spell an end to various kinds of exemptions enjoyed by the corporate sector. These include area-based exemptions and sectoral tax breaks.
Finance minister P Chidambaram had proposed the introduction of GST from April 1, 2010 in the last Budget. He had asked the empowered committee of state finance ministers to prepare a road map. The empowered committee is now giving final touches to its recommendations on the modalities of GST, which looks all set to be announced in Budget 2008-09. The Planning Commission has already endorsed the finance ministry’s view on launching GST from 2010 in the approach paper to the 11th Plan.
Finance minister P Chidambaram had proposed the introduction of GST from April 1, 2010 in the last Budget. He had asked the empowered committee of state finance ministers to prepare a road map. The empowered committee is now giving final touches to its recommendations on the modalities of GST, which looks all set to be announced in Budget 2008-09. The Planning Commission has already endorsed the finance ministry’s view on launching GST from 2010 in the approach paper to the 11th Plan.
HDFC Bank on Monday approved the acquisition of Centurion Bank of Punjab (CBoP) for Rs 9,510 crore in the largest merger in the financial sector in India. However, the merged entity would still be two-fifth the size of the country’s second largest lender, ICICI Bank.
CBoP shareholders will get one share of HDFC Bank for every 29 shares held by them.
CBoP shareholders will get one share of HDFC Bank for every 29 shares held by them.
Short-selling of securities on the stock exchanges, a market reform long-promised by the finance ministry and capital market regulator SEBI, is set to commence. The government has clarified that lending and borrowing of securities under the securities lending and borrowing scheme will not attract Securities Transaction Tax (STT) or capital gains tax. However, it is not clear if sale and repurchase transactions made on the basis of borrowed securities would be taxable.
Finance minister P Chidambaram had announced introduction of sort-selling in the 2007 budget. SEBI formally announced the scheme on December 29, 2007. The regulator has also decided to put in place a full-fledged stock lending and borrowing mechanism for all market participants in the securities market under the overall framework of Securities Lending Scheme 1997.
Finance minister P Chidambaram had announced introduction of sort-selling in the 2007 budget. SEBI formally announced the scheme on December 29, 2007. The regulator has also decided to put in place a full-fledged stock lending and borrowing mechanism for all market participants in the securities market under the overall framework of Securities Lending Scheme 1997.
