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Income Tax

Certificate for Tax Deducted at Source in Part B of Form No. 16 through TRACES

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Certificate for Tax Deducted at Source in Part B of Form No. 16 through TRACES

Procedure, format and standards for issuance of certificate for tax deducted at source in Part B of Form No. 16 through TRACES – CBDT Circulars dt. 6.5.2019

Procedure, format and standards for issuance of certificate for tax deducted at source in Part B of Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules, 1962 through TRACES

Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems) New Delhi

Notification No. 09/2019

New Delhi, 06th, May, 2019

Subject: Procedure, format and standards for issuance of certificate for tax deducted at source in Part B of Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules, 1962 through TRACES- reg.

Section 203 of the Income-tax Act.1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc.

The relevant forn1 for TDS certificate in case of deduction under section 192 of Chapter XVII-B of the Act is Forn1 No. 16 which is to be issued annually. TDS Certificate in Form No 16 has two parts viz. Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

2. Vide Central Board of Direct Taxes Notification No. 36/2019 dated 12.04.2019, ‘Pait B (Annexure) of Form 16’ and ‘Annexure II of Form no. 24Q’ in Appendix II to the Income tax Rules, 1962 have been amended.

3. In exercise of the powers delegated by the Central Board of Direct Taxes, under sub-rule (6A) of Rule 31 of the Income-tax Rules, 1962, the Principal Director General of Income-tax (Systems) hereby specifies the procedure, formats and standards for the purposes of generation and download of certificates from “TDS Reconciliation Analysis and Correction Enabling System” or (https://www.tdscpc.gov.in) (hereinafter called TRACES Portal), as below:

3.1 ISSUE OF PART b OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE MADE ON OR AFTER 1st day of April, 2018:

All deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall be able to issue the TDS certificate in Part B of Form No. 16 (by generation and download through TRACES Portal) in respect of all sums deducted on_or after the 1st day of April, 2018 under the provisions of section 192 of Chapter XVII-B provided that the relevant TDS statement for the fourth quarter i.e.

Form 24Q is furnished alongwith duly filled in Annexure II of Form 24Q as substituted vide Central Board of Direct Taxes Notification No. 36/2019 dated 12.04.2019.

To ensure generation of accurate TDS certificate in Part B of Form No. 16, the deductor(s) need to report correct data in Annexure II of Form 24Q. The TRACES generated Form No. 16 shall have a unique TDS certificate number.

3.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:

The deductor, issuing the TDS certificate in Form No. 16 by downloading it from the TRACES Portal, shall, before issuing to the deductee authenticate the correctness of contents mentioned therein and verify the same either by using manual signature or by using digital signature in accordance with sub-rule (6) of Rule 31.

3.3 ‘Part B (Annexure)’ of Form No. 16 item nos. 2(f) and 10(k):

The item nos. 2(f) and 10(k) in Part B (Annexure) of Form 16 required to be filled-in by the deductor manually shall be made available at the bottom of the TRACES generated Form 16 (Part B) and the deductor shall duly fill details, where available, in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee.

The deductors who opt to authenticate Part B of Form No. 16 manually will be provided with the download of the Part B of Form No. 16 alongwith these item nos. 2(f) and 10(k) appearing at the bottom of the Form. The deductor shall duly fill details, where applicable, in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee.

The deductors who opt to authenticate Part B of Form No. 16 using Digital Signature Certificate (DSC) will be provided with the download of Part B of Form No. 16 without item nos. 2(f) and 10(k) and therefore these details shall be required to be prepared by the employer and issued to the employee, where applicable, before furnishing of Part B to the employee.

3.4 Sub rule (3) of Rule 31 of the Income tax Rules, 1962 prescribes the time limit for issuance of Form 16 by the deductor to the employee.

Currently, Form 16 should be issued by 15th June of the Financial Year immediately following the financial year in which income was paid and tax deducted.

4. This issues with approval of the Principal Director General of Income-tax (Systems).

(Ravi Kant Choudhary)
JCIT (OSD) (CPC-TDS),
O!o the Pr. Director General of lncome-tax (Systems),
New Delhi

No TDS upto 50,000 for Senior Citizen – CBDT Notification Dt. 6.12.2018

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No TDS upto 50,000 for Senior Citizen – CBDT Notification Dt. 6.12.2018
TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens

F. No. Pr. DGIT(S)/CPC(TDS)/Notification/2018-19

Notification No. 06/2018

Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems)
New Delhi

Notification No. 06 /2018

New Delhi, 06th December, 2018

Subject: – TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens – reg.-

It has been brought to the notice of CBDT that in case of Senior Citizens, some TDS deductors/Banks are making TDS deductions even when the amount of income does not exceed fifty thousand rupees.

The same is not in accordance with the law as the Income-tax Act provides that no tax deduction at source under section 194 A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. (Please refer to the third proviso to sub-section 3 of section 194 A)

2. Under sub-rule (5) of Rule 31 A of the Income-tax Rules, 1962, the Director General of Income-tax (Systems) is authorized to specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26 B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26 B in the manner so specified.

3. In exercise of the powers delegated by the Central Board of Direct Taxes (Board) under sub-rule (5) of Rule 31 A of the Income-tax Rules, 1962, the Principal Director General of Income-tax (Systems) hereby clarifies that no tax deduction at source under section 194 A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees.

sd/-
(Dewangi Marthak)
Asstt. Commissioner of Income-tax(CPC-TDS)
O/o the Pr. Director of Income-tax (Systems)
New Delhi

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No GST On Sale of Ready to Move-In Flats

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No GST On Sale of Ready to Move-In Flats

No GST on sale of complex/ building and ready to move-in flats

Ministry of Finance
Effective tax rate on complex, building, flat etc.

It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority. GST is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale.

Effective rate of tax and credit available to the builders for payment of tax are summarized in the table for pre-GST and GST regime.

PERIOD
OUTPUT TAX RATE
INPUT TAX CREDIT DETAILS
EFFECTIVE RATE OF TAX
Pre- GST
Service Tax: 4.5% VAT: 1% to 5% (composition scheme)
Central Excise on most of the construction materials: 12.5% VAT: 12.5
to 14.5% Entry Tax: Yes
No input tax credit (ITC) of VAT and Central Excise duty paid on
inputs was available to the builder for payment of output tax, hence it got
embedded in the value of properties. Considering that goods constitute
approximately 45% of the value, embedded ITC was approximately 10- 12%.
Effective pre-GST tax incidence: 15- 18%
GST
Affordable housing segment: 8%,   Other segment: 12% after 1/3rdabatement of
value of land
Major construction materials, capital goods and input services used
for construction of flats, houses, etc. attract GST of 18% or more.
ITC available and weighted average of ITC incidence is approximately 8
to10%.
Effective GST incidence, for affordable segment and for other segment
has not increased as compared to pre- GST regime.

Housing projects in the affordable segment such as Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas Yojana or any other housing scheme of State Government etc., attract GST of 8%.

For such projects, after offsetting input tax credit, the builder or developer in most cases will not be required to pay GST in cash as the builder would have enough ITC in his books of account to pay the output GST.

For projects other than affordable segment, it is expected that the cost of the complex/ buildings/ flats would not have gone up due to implementation of GST. Builders are also required to pass on the benefits of lower tax burden to the buyers of property by way of reduced prices/ installments, where effective tax rate has been down.

Pension Exempt from Income Tax – BPS writes to FM

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Pension Exempt from Income Tax – BPS writes to FM

Pension of Ex-Govt Employees to be Net of Income Tax Dt – 23.11.18

BHARAT PENSIONERS SAMAJ

(All India Federation of Pensioners Association)
2/13-A-LGF Backside, Jangpura – ‘A’, New Delhi – 110 014

No BPS/ SG/pension/I.Tax/018/1

Dated: 23.11.2018

To
The Arun jaitley ji
Honorable Cabinet Minister for Finance
Government of India

Subject: Pension of ex-Govt employees to be net of Income Tax

Sir,
With passage of time, the purchase value of pension due to steep rise in the cost of food items, caregivers and medical facilities etc gets substantially reduced.

Due to inflation coupled with low interest rates value of their deposits in Banks/Post offices etc too go on reducing year by year adversely affecting the net-worth of Pensioners. Thus compelling them to compromise their standard of dignified living.

As was worked out & recommended by TECS (Tata Economic Consultancy Services) consultant to Vth CPC (Para 127.9 Vol III 5th CPC report) Pension need to be 67% of the last drawn to enable a pensioner to live with the same standard to which he was living while in service (Supreme Court pronouncement in DS Nakara vs UOI) but only 50% of last drawn is being paid. Old age relief given to Sr citizen in Income tax is too little to compensate.

You are therefore, requested to reconsider & accept the recommendation of Vth CPC vide their 167.11(copy attached) in this regard and spare the pension/family pension along with DR & FMA from the levy of income-tax.

Further to compensate fall in purchase value of their savings in deposits with banks & post offices rate of interests for senior citizens on their deposits should be 2% above the normal rate of interests as against the existing 0.25% to 0.50%.

Hoping for your sympathetic consideration

Thanking you in anticipation

With Regards
Sincerely yours,
S.C.Maheshwari
Secy Genl Bharat Pensioners Samaj

Source: https://scm-bps.blogspot.com/

Income Tax Calculator Pre Post Budget 2018

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Income Tax Calculator Pre Post Budget 2018

Income Tax Calculator for AY 2018-19 and AY 2019-20

Income Tax Calculator Pre Post Budget 2018
Age Category
Gross Income
Description AY 2018-19 AY 2019-20
Taxable Income
Standard Deduction ---
Transport Allowance ---
Taxable Income
0% () --- ---
5% ()
10% ()
20% ()
30% ()
Tax on Income
Rebate U/S87A
Tax on net Income
Surcharge
Educational Cess 4%
Total Tax Payable
Impact on Tax