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2016
  • The CBDT has issued Circular No. 22/2015 dated 17.12.2015 pointing out that in CIT vs. Alom Extrusions Ltd, [2009} 185 TAXMAN 416 (SC), the Apex Court has held that the amendments made in section 43B of the Act by way of deletion of the second proviso and amendment in the first proviso are curative in nature and should be retrospectively applicable from 1.04.1988.
  • It is noted that the Supreme Court has further held that by deleting the second proviso to section 43B of the Act and amending the first proviso, the contribution to welfare funds have been brought at par with the other duty, cess, fee, etc.

2016
  • Fresh out of college when a person sets on the path of his / her career, he is on a different plane where he suddenly enjoys complete financial freedom on one hand and an anxiety about how to make the earned money work best for his future.
  • Although initially owing to the low-income scales that he receives, there is not much income tax cutting from the hard-earned money.
  • However a small amount of planning can help in saving a huge amount of taxes in the future.

2016

Form 6 - disclosure of Foreign Assets

  • Form 6 is a form used to declare the undisclosed foreign earnings and foreign assets of an individual while filing the tax returns.
  • This form comes under Section 59 of the Black Money Act which makes it mandatory to disclose any undisclosed foreign income and assets.
  • This form is very simple to fill. Let’s try to evaluate the contents of the form so that it becomes easy for us while filing our Tax Returns.

2015
  • Salaried class of Tax Payers are the most worried class among all other classes of taxpayers.
  • The reason for worrying are countless, most notable aspect is the salary growth rate per annum. People complain that the growth rate is not proportionate to the inflation rate.
  • But for those who get better-paid jobs are concerned about the tax rates particularly those who have increments in a particular year but everything is taken back by the government by increasing the tax rates.
  • However, we have come up with some relief to those who really need it.
  • One may make use of the tips, mentioned below, to at least reduce some tax liability.

2015
  • If you have an income tax refund to claim for the assessment years 2013-14 and 2014-15, then there is a reason for you to cheer. The Central Processing Centre at Bangalore and other field formation of the Income Tax Department have been instructed to hasten the refund process for those who have a refund amount below Rs 50,000 to claim.
  • “Central Board of Direct Taxes has issued directions to its field formations to expedite the issue of pending refunds below Rs. 50,000 for assessment years 2013-14 and 2014-15 in all such cases which have not been selected for scrutiny,” states the notification issued by the Central Board of Direct Taxes on December 7, 2015.
  • A return can be selected for scrutiny during the time period extending up to the end of six months, starting the end of financial year in which the return was filed. So, if you filed your returns on July 15, 2015, then your return can be called for scrutiny up to the end of September 30, 2016, which is six months after March 31, 2016 (the financial year in which you filed returns).

2015
  • The Income tax department has initiated e-Sahyog project to reduce compliance cost for small taxpayers, wherein tax mismatch notices would be sent via emails instead of physical letters and the taxpayer can respond to the notice by logging into the income tax e-filing portal.
  • Have you changed your phone number recently? Provided the email ID of your friends, relatives or the chartered accountant while filing returns? It is about time to get your own email address and phone numbers updated in the Income Tax Department records.
  • This is because the notices sent out to taxpayers for tax mismatch, usually due to erroneous calculations and returns, would not land at your doorstep anymore. Instead the assessing officers would now be sending mismatch notices via email and notifying the same through SMS, in line with the Digital India initiative of the Government of India.

Financial Management