Dear All,
  As we all know, the Chief Minister of Karnataka, Mr.Siddaramaiah has read out the Karnataka State Budget. Below are the major changes with regard to tax point of view.

1.       Proposed to tax the liquor consumers by introducing a value added tax of 5.5 percent on sale of liquor.

2.       Increase additional excise duty on beer from 122 per cent to 135 percent.

3.       Relief measures for the trade and commerce.

4.       Continue to exempt tax on paddy, rice, wheat, pulses and products of rice and wheat for one more year from April 2014.

5.       Reduce tax on scented arecanut powder other than mixtures from 14.5 per cent      to 5.5 percent.

6.       The registration limit from the present Rs 5 lakhs of annual turnover to Rs 7.5 lakhs as a relief to small dealers

7.      Increase the license fee on primary distilleries, Indian liquor manufacturing distilleries and Breweries (A Company that makes beer is called as brewer) by 50 per cent and on retail liquor shops to Rs 3 lakhs   from Rs 1 lakhs.

8.     Increase in luxury tax on minimum daily rent to Rs 750 from Rs 500.

9.   Waiver of penalty payable for default in filing of returns by small dealers who have no tax liability and  opt for cancellation of their registration.

10. Increase in minimum sale value fixed for obtaining electronic delivery note (e-SUGAM) from Rs.20000    to Rs.25000.

11. Exemption to works contractors from compulsory registration provision.

12. Suitable administrative measures to enable dealers to rectify mistakes in the returns which have no tax    implication.

13. Provision for single second appeal against reassessment for several tax periods of one financial year.

14. Provision for remission and reduction of Stamp Duty on instruments specified in the Government notification dated: 23-04-2003, with retrospective effect.

15. Exempts stamp duty on alternate sites allotted by the Bangalore Development Authority (BDA) in lieu of the land freed from government control (denotified) and on sale deeds executed under the state government's aerospace policy 2013-23.

The above are the few important highlights.

Interest on late deposit of TDS – 3 % for delay of one day

Interest on late deposit of TDS is applicable @ 1.5% per Month or part thereof.  The period for delay is taken from date of deduction to date of deposit. So in specific cases a delay of one day may lead to pay interest @ 3%.

Suppose:

TDS deducted on 01.08.2013,

In this case,  due date will be 07.09.2013

If we deposit tax on 08.09.2013, one day delay also., interest will be applicable for two months i.e., from the date of deduction  (in our example it is 01.08.2013) to date of  deposit (i.e., 08.09.2013) @ 1.5% per month (that will be equal to 3%).

So be aware of the due dates & provisions of the laws.

ITR-1	It is for the Individual assesses having the   incomes like salary/pension/House property(Excluding the brought forward losses from previous year)/other sources(excluding the income from lottery & winning from race horses).
ITR-2	It is for the Individual & HUFs not having the income from Business or Profession. The types of income is same as ITR-1, including Capital Gains. (If any clubbing of income, can also use this ITR)
ITR-3	For Individuals/HUFs being the partners in firms & not carrying out Business or Profession under any proprietorship.
ITR-4	For Individuals/HUFs having income from a proprietary Business or Profession.
ITR-4S	SUGAM- Presumptive Business Income Tax Return
ITR-5	For Firms, Association Of Persons(AOP), Body Of Individuals(BOI).
ITR-6	For Companies other than Companies claiming exemption under section-11 (Income from property held for charitable or religious purposes).
ITR-7	For persons including Companies required to furnish return under section 139(4A)/(4B)/(4C)/(4D).
ITR-8	Return for fringe benefit
ITR-V	Acknowledgement. Where the data of the return of income in forms saral-II transmitted electronically without digital signature.

Difference between TDS and TCS

TDS :-Tax deducted at source arises when we are making the PAYMENTS which are covered under the purview of TDS

Example :-Payment of salary above the AVERAGE limit (194B)

               Payment of professional charges (194J) etc.

Note :- At the time of TDS Payer has to pay lesser amount than the actual amount

TCS :- Tax collected source arises when we are dealing with the transactions which are covered under section 206C(1) of income tax act 1961

Example :-Sale of scrap,Sale of alcoholic liquor etc.

Note :-At the time of TCS seller is used to collect higher amount than the invoice amount

However in both the cases tax amount will be remitted in govt.account

                

Abbrevations in Bank

Friends, normally we all go to banks for various purposes., here I found out few short forms normally used by the bank people. So I tought of sharing with all of you. It is nice to know the short, short forms which we use in our daily life.  The following are few such frequently used ones:

Adj - Adjustment

Ar. – Arrears

Capn. – Capitalisation

Chg/Ch. – Charges

Chq. – Cheque

Clo. – Closure

Coll – Collection

CoR/CORR – Correction

Csh – Cash

Dep – Deposit

Dish/dsh – Dishonour

Inop – Inoperative

Ins – Insurance

Lon/ln – Loan

OS – outstanding

P & T – Postage & Telegram

POS – Point of sale

Pr – Principal

Proc – Processing Charges

Ret/rtn – Return

Rnd – Round off

SC – Short credit

SI/SO/SORD – Standing Instruction

Txn – Transaction

Wdl – Withdrawal

+MOD BAL – Total Balance

  

Hope it helped you.

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Know Your PAN Card..!!!!

Hello Friends,

We like to share few important things about PAN..!!

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department. PAN is basically a method of identifying a taxpayer on the computer system through a unique All-India number so that all information relating to that  taxpayer, (E.g. taxes  paid, refunds  issued, outstanding arrears, income disclosed, transactions entered, status etc.) can be linked to him through the computer system.

Earlier the assesses of the Income-tax Department were identified by their General Index Register(GIR) Number. This was essentially a manual system. The GIR number was unique only within an Assessing Officers Ward / Circle and not through out the country. To overcome these shortcomings, PAN (old series) was first introduced in 1972 and made statutory u/s 139A of the Act w.e.f. 1st April, 1976.

Usefulness of PAN: 

·         To facilitate linking of various documents and information, including payment of taxes, assessment, tax demand, arrears etc. relating to an assessee.

·         To facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for widening of tax base and detecting and combating tax evasion through non- intrusive means.

·         To facilitate easy retrieval of information.

New series of PAN & its structure:

The PAN under new series is based on following constant permanent parameters of a taxpayer and uses Phonetic Soundex code algorithm to ensure uniqueness :-

1.                   Full name of the taxpayer

2.                   Date of birth/Date of Incorporation

3.                   Status

4.                   Gender in case of individuals and

5.                   Father's name in case of individuals (including in the cases of married ladies)

These five fields are called core fields, without which PAN can not be allotted.

The system automatically generates a 10 character PAN using the information in above five core fields.

Normally we can see the PAN as AAA S A 1234 A

The alphabets indicates as follows:

• First Three Digit Alphabetic series running from AAA to ZZZ
• Fourth Digit- Status

In fourth digit, we can find these alphabets which indicates as follows:

• P-Person
• C- Company
• F-Firm
• H-Hindu Undivided Family
• J- Artificial Judicial Person
• L- Local bodies or authorities
• A- Association of Person
• T- Trust
• B- Body of Individuals
• G - Government

·         In fifth digit first character of assessee's Last Name/Surname

·         Next Digit Sequential Number running from 0001 to 9999

·         Last Digit will be an Alphabet.

Who can apply for PAN?

Under Section 139A(1) of the Income-tax Act, 1961 following categories of persons are expected to apply and obtain PAN:

• Persons who are already assessed or assessable to Income-tax
• Persons who are carrying on any business or profession where total sales/turnover/gross receipts are or is likely to exceed Rs. 5,00,000 in any previous years
• Trusts
• Any class or classes of persons by whom tax is payable under the Income-tax Act or any tax or duty is payable under any other law for the time being in force including importers and exporters whether any tax is payable by them or not.

PAN under the new series is allotted on the basis of Form 49A filled up by the applicants. Section 139A provides that no person can hold more than one PAN. (Obtaining or possessing more than one PAN is against the law)

 Following is the format of PAN:

We felt this information will be useful, So we are sharing with you.. So hope you enjoyed by reading our first post in our first blog..!!