/ CORPORATE AND PROFESSIONAL UPDATE

All About the Public Provident Fund Account

All About the Public Provident Fund Account

All About the Public Provident Fund Account

When it comes to financial planning, the Public Provident Fund (PPF) is one investment that is often recommended by financial experts. A government-backed investment scheme, the PPF offers a safe and reliable way to build wealth over the long term. By investing in a PPF account, you can make your way towards becoming a crorepati.

What is a PPF Account?

The Public Provident Fund (PPF) is a long-term investment option offered by the Government of India. The investment scheme aims to encourage saving amongst citizens of India and provides attractive returns. The current interest rate offered on a PPF account is 7.1% per annum. The interest earned is tax-free, making it an attractive investment option for anyone looking to build wealth in a tax-efficient manner.

How can a PPF Calculator Help You Become a Crorepati?

A PPF calculator is a tool designed to help individuals calculate the amount of interest they can earn on their PPF account over a specified period. By using a PPF calculator, you can get an estimate of the amount you can earn on your investment and make an informed decision about how much to invest to achieve your financial goals.

To use the PPF calculator, you need to provide information such as the amount you plan to invest, the tenure of your investment, and the frequency of your investments. Once you enter this information, the PPF calculator will provide you with an estimate of the amount you can earn on your investment.

How Much to Invest to Become a Crorepati?

The amount you need to invest to become a crorepati through a PPF account depends on various factors such as the tenure of your investment, the frequency of your investments, the interest rate offered on your investment, and the age at which you start investing.

Here are some scenarios which will give you an idea of how much you need to invest to become a crorepati through a PPF account:

Scenario 1:

You are 25 years old and plan to invest Rs. 50,000 every year in a PPF account for the next 35 s

Scenario 2:

You are 30 years old and plan to invest Rs. 1,00,000 every year in a PPF account for the next 25 years. Assuming an interest rate of 7.1% per annum, you will accumulate a corpus of Rs. 1,16,57,298 by the time you turn 55 years old.

Scenario 3:

You are 35 years old and plan to invest Rs. 2,00,000 every year in a PPF account for the next 20 years. Assuming an interest rate of 7.1% per annum, you will accumulate a corpus of Rs. 1,61,60,887 by the time you turn 55 years old.

As you can see from the above scenarios, the amount you need to invest to become a crorepati through a PPF account depends on various factors. However, investing regularly and starting early can help you maximize your returns and achieve your financial goals.

Other Benefits of a PPF Account

Apart from offering attractive returns, a PPF account offers several other benefits. Here are some of them:

  1. Tax Savings: The amount invested in a public provident fund account qualifies for tax deductions under Section 80C of the Income Tax Act, 1961. The maximum deduction allowed is Rs. 1.5 lakh per annum.
  2. Loan against PPF: You can take a loan against your PPF account after the completion of the third financial year from the date of opening the account.
  3. Partial Withdrawal: You can make partial withdrawals from your PPF account after the completion of the sixth financial year from the date of opening the account.

Conclusion

Investing in a PPF account can help you become a crorepati over the long term. By using a PPF calculator, you can get an estimate of the returns you can earn on your investment and plan your investments accordingly. Investing regularly and starting early can help you maximize your returns and achieve your financial goals. Remember to review your investment periodically and make changes as per your financial needs and goals.

/ Business Consultancy

Do Not Keep Your Money in a Savings Bank Account -Here’s Why

Saving bank ac

Do Not Keep Your Money in a Savings Bank Account — Here’s Why

In a world where inflation silently eats into your purchasing power, letting your money sit idle in a savings bank account (typically earning just 2.5%–4% interest) is like watching it lose value in slow motion.

Why you shouldn’t: Low returns: Most banks offer returns lower than inflation. Your real wealth shrinks. There are smarter, safer, and more rewarding alternatives.

Do Not Keep Your Money in Saving Bank A/c. Avoid keeping surplus money in a savings account. and instead, invest it in assets that provide at least 8% returns to beat inflation.

The Reason Explained: Do Not Keep Your Money in a Savings Bank Account

Parameter Value
Savings A/c Interest Rate 3% – 5%
Average Inflation in the Country 6%
Real Return on Your Funds 1%

Implications: Your money loses value in real terms (due to inflation). Keeping money idle in a savings account can reduce your purchasing power by 1% per year. Always explore the investments where you get returns more than the rate of inflation in the country.

Do Not Keep Your Money in a Savings Bank Account – Investment Alternatives:

Risk-Free Options:

  • Fixed Deposits (FDs) – Especially short-term FDs with 6–7% interest, depending on tenure and bank.
  • Sweep-in FDs – Combine the flexibility of a savings account with the returns of an FD.
    Short-term Debt Funds – For those who understand risks, they offer better yield with manageable volatility.
  • High-Interest Digital Bank Accounts – Some fintech platforms and neo-banks offer 6–7% on savings balances.
  • Public Provident Fund (PPF)
  • National Pension System (NPS)
  • Treasury Bills (T-Bills)

Market-Based Options:

  • Stocks
  • Liquid Mutual Funds – Offer better returns than savings accounts and are nearly as liquid.
  • Exchange Traded Funds (ETFs)

Your money should work for you—even when you’re asleep. Start by reviewing where you park your emergency and idle funds. Every extra 1% return matters, especially when compounded over time.

/ Project Finance

All About National Savings Certificate (NSC) & PPF

Provident Fund;What are the differences and similarities between the National Savings Certificate (NSC) and PPF?

National Savings Certificate (NSC) Public Provident Fund (PPF)
Interest Paid: 8%, compounded half-yearly Interest Paid: 8%, compounded annually
No monthly/yearly payments No monthly/yearly payments
Minimum investment: Rs 100 Maximum investment: No Limit Minimum investment: Rs 500 (required annually)Maximum investment: Rs 70,000
Duration of investment: 6 years Duration of investment: 15 years
Can be used as a security for mortgage and other purposes Cannot be used for such purposes
Tax benefit under Section 80 ‘C’ available.Maximum limit: Rs 100,000 Tax benefit under Section 80 ‘C’ available.Maximum limit: Rs 70,000 (limit of the investment in PPF)
Good medium-term investment option Good long-term investment option
Interest if fully Taxable Interest is fully Exempt

Do consider opening a PPF account if you do not have one. You can put in as little as Rs 500 a year to keep it going.

How much interest do I earn by investing in PPF scheme?

Since the year 2003-04, the rate of interest on PPF saving scheme is 8% p.a. compounded annually.

How does PPF stand vis-à-vis NSC?

Investing in PPF certainly scores over investing in NSC. For more details see: Which is better between the PPF and the NSC?

How can I make the most of my PPF account? What are the considerations to be kept in mind while investing in PPF?

There are certain tips and tricks you can use to make the most of your PPF account such as opening PPF account at the earliest, investing on regular basis rather than waiting till the end of the year, and investing before 5th of every month. For more of such tips see: 10 Practical Tips for investing in PPF.

How do I calculate the interest on PPF?

Use PPF interest Calculator to calculate your PPF interest and maturity value.

Why should I invest in PPF?

You must invest in a PPF because it is the best debt option after PF:-

  • 8% p.a. tax-free returns in addition to section 80C deduction on deposits.
  • Option to invest regularly for long term and can be continued indefinitely even after maturity.
  • Highest safety as it is a government- backed saving scheme.
  • Can’t be attached by any court.
  • Flexibility to invest varying amounts. You’re allowed to deposit in lump sum or in installments. Further, you can vary amount of installments as per your convenience and it is not necessary to deposit every month.

What is the maximum ceiling on deposit in PPF?

As per Section 80C of Income Tax –> no ceiling
As per PPF Rules –>Rs 70,000

How many numbers of times can I make deposits in PPF account during a year?

You can deposit money in your PPF account either in lump sum or in installments which need not be of same amount. However, total number of deposits during a financial year can’t exceed twelve.

Am I required to deposit money in my PPF account every year? What if I don’t?

Yes, a minimum deposit of Rs 500 is required every year. If you don’t, then your account will become inoperative.

What are the tax benefits available on PPF scheme?

There are two benefits: first when you deposit money in your PPF account, you get entitled for tax deduction u/s 80C and as a result your taxable income stands reduced to that extent. The second tax benefit is that the interest earned on your PPF deposits is completely exempt from tax.

Is it possible to avail Rs 1 lakh deduction under section 80C though we’re allowed to deposit maximum of Rs 70,000 under PPF rules?

Actually under the IT Act, there is no limit and even under PPF rules Rs 70,000 limit is meant for self a/c and minor a/c. It doesn’t include the contribution to the a/c of spouse and major children.

In other words, as per PPF rules, the total deposit in your own account and in the account of your minor child can’t exceed Rs 70,000 in a FY. But PPF rules doesn’t bar you from making additional deposit beyond the limit of Rs 70,000 in the account of your spouse or your major children and accordingly you can claim Rs 1 lakh tax deduction u/s 80C of IT Act.

Who can claim section 80C benefit: the person in whose name the PPF a/c stands or the person who deposits money in the PPF account?

The person who makes the contribution to PPF is entitled for tax benefit. For example, if you invest your money in the PPF account of your spouse, you’ll be entitled to claim section 80C deduction instead of your spouse.

Can I contribute to the PPF account of my parent’s and claim section 80C tax benefit?

No, you’re not allowed to claim tax benefits on the contribution made by you in the PPF account of your mother or father.

Is it possible to avail section 80C benefit without making deposits in the PPF account?

Yes, but only from 7th financial year onwards. The trick is to make partial withdrawals (as mentioned below) and redeposit it in your PPF account.

Hope the information will assist you in your Professional endeavors. For query or help, contact: info@caindelhiindia.com or call at 9555 555 480

/ Direct Tax

Deductions U/S 80C under Schedule VI of Income Tax

80c

INCOME TAX DEDUCTIONS UNDER SECTION 80C:

Under section 80C, every individual and HUF, is provided with a deduction of amount up to Rs.1,50,000. To avail such deductions, the prescribed taxpayers, need to invest in any of the following options –

  • Life insurance premium payment
  • Annuity plan of LIC or any other notified insurers.
  • Unit Linked Insurance Plan (ULIP) of UTI or ULIP of LIC mutual fund u/s 10(23D) contribution
  • PPF (Public Provident Fund) contribution
  • Non-commuted deferred annuity plan payment
  • Amount deducted from government employee salary for the purpose of securing him of deferred annuity
  • SRF/RPF contribution
  • Tuition fees payment
  • Repayment of housing loan
  • Superannuation Fund contribution
  • Senior Citizen Scheme investment
  • PPF investment
  • 5-year FD investment
  • Sukanya Samridhi Yojana investment
  • Mutual Funds (Equity Linked Saving Scheme) investment
  • Subscription to any deposit scheme/pension fund of National Housing Bank (NHB)
  • the Subscription to bonds issued under the scheme of National Bank for Agriculture and Rural Development (NABARD)
  • Subscription to notified deposit scheme of Public Sector Housing Finance Company and Housing Development Authority of cities, towns and villages
  • Subscription to equity shares or debentures of a Company or any Public financial institution, where the proceeds are utilized for infrastructure purpose.
  • Stamp duty, registration fee incurred for the purpose of transfer of such house property to the assessee.

DEDUCTIONS UNDER SCHEDULE VI

DEDUCTIONS UNDER SCHEDULE VI

SECTIONS PARTICULARS ELIGIBLE PERSONS PRESCRIBED LIMIT OF DEDUCTION
SECTION 80C INVESTMENT IN LIC, PPF, SUKANYA SAMRIDDHI ACCOUNT, MUTUAL FUNDS, FD ETC INDIVIDUAL
AND
HUF		 UPTO RS 1,50,000
SECTION 80CCC INVESTMENT IN PENSION FUNDS INDIVIDUALS
SECTION 80CCD (1) ATAL PENSION YOJANA AND NATIONAL PENSION SCHEME CONTRIBUTION INDIVIDUALS
SECTION 80CCD (IB) ATAL PENSION YOJANA AND NATIONAL PENSION SCHEMECONTRIBUTION INDIVIDUALS UPTO RS 50,000
SECTION 80CCD (2) NATIONAL PENSION SCHEME, UNDERTAKEN BY THE EMPLOYER INDIVIDUALS LOWER OF –

·         AMOUNT CONTRIBUTED

·         14% OF BASIC SALARY + DEARNESS ALLOWANCE, IN CASE OF GOVERNMENT EMPLOYEE.

·         10% OF BASIC SALARY+ DEARNESS ALLOWANCE, IN CASE OF OTHER EMPLOYEES
SECTION 80D MEDICAL INSURANCE PREMIUM AND MEDICAL EXPENDITURE INDIVIDUAL
OR
HUF		 UPTO RS 25,000 FOR SELF AND FAMILY. MAXIMUM UP TO RS 1,00,000 INCLUDING PARENTS
SECTION 80DD MEDICAL TREATMENT OF A DEPENDENT WITH DISABILITY INDIVIDUAL
OR
HUF		 NORMAL DISABILITY: RS 75000/-
SEVERE DISABILITY: RS 125000/-
SECTION 80DDB SPECIFIED DISEASES INDIVIDUAL
OR
HUF		 SENIOR CITIZENS: UPTO RS 1,00,000
OTHERS: UPTO RS 40,000
SECTION 80E INTEREST PAID ON LOAN TAKEN FOR HIGHER EDUCATION INDIVIDUAL 100% OF THE INTEREST PAID, ALLOWED UPTO 8 ASSESSMENT YEARS
SECTION 80EE INTEREST PAID ON HOUSING LOAN INDIVIDUAL UPTO RS 50,000 SUBJECT TO SOME CONDITIONS
SECTION 80EEA IINTEREST PAID ON HOUSING LOAN INDIVIDUAL UPTO RS 1,50,000/- EXTENDED FOR AY 2021-22
SECTION 80EEB INTEREST PAID ON ELECTRIC VEHICLE LOAN INDIVIDUAL UPTO RS 1,50,000 SUBJECT TO SOME CONDITIONS
SECTION 80G DONATION TO CHARITABLE INSTITUTIONS ALL ASSESSEE (INDIVIDUAL, HUF, COMPANY ETC) 100% OR 50% OF THE DONATED AMOUNT OR QUALIFYING LIMIT,
ALLOWED IN CASH UPTO RS.2000.
SECTION 80GG INCOME TAX DEDUCTION FOR HOUSE RENT PAID INDIVIDUAL LOWER OF –

·         RS.60,000

·         25% OF TOTAL INCOME

·         RENT PAID – 10% OF TOTAL INCOME
SECTION 80GGA DONATION TO SCIENTIFIC RESEARCH & RURAL DEVELOPMENT ALL ASSESSEES EXCEPT THOSE WHO HAVE AN INCOME (OR LOSS) FROM A BUSINESS AND/OR A PROFESSION 100% OF THE DONATION,
ALLOWED IN CASH UPTO RS.10,000.
SECTION 80GGB CONTRIBUTION TO POLITICAL PARTIES COMPANIES 100% OF THE DONATIO, HOWEVER, DONATION IN CASH IS NOT ALLOWED
SECTION 80GGC INDIVIDUALS CONTRIBUTION TO POLITICAL PARTIES INDIVIDUAL
HUF
AOP
BOI
FIRM		 100% OF THE DONATIO, HOWEVER, DONATION IN CASH IS NOT ALLOWED
SECTION 80IA PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC. INDUSTRIAL UNDERTAKINGS ENGAGED IN SPECIFIED BUSINESSES 100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS FROM COMMENCEMENT
SECTION 80IAB PROFITS AND GAINS TO SEZ DEVELOPERS SEZ DEVELOPERS 100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS FROM COMMENCEMENT
SECTION 80IAC ELIGIBLE STARTUPS COMPANY OR LLP ENGAGED IN ELIGIBLE BUSINESS SUBJECT TO SOME CONDITIONS 100% OF THE PROFIT FOR 3 CONSECUTIVE YEARS OUT OF 7 YEARS FROM COMMENCEMENT.
SECTION 80IB PROFITS AND GAINS FROM CERTAIN INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKINGS SPECIFIED INDUSTRIAL UNDERTAKINGS 25%, 30% OR 100% OF THE PROFIT DEPENDING ON THE PERIOD.
SECTION 80IBA PROFITS FROM HOUSING PROJECTS INDIVIDUAL
HUF
AOP
BOI
COMPANY
FIRM
ANY OTHER PERSON ENGAGED IN THE BUSINESS OF HOUSING PROJECTS AS MAY BE SPECIFIED		 100% OF THE PROFIT
SECTION 80IC CERTAIN UNDERTAKINGS IN SPECIAL CATEGORY STATES CERTAIN INDUSTRIAL UNDERTAKINGS FOR SIKKIM – 100% OF PROFIT FOR 10 YEARS.

FOR HIMACHAL PRADESH/ UTTARANCHAL
100% OF THE PROFIT FOR FIRST 5 YEARS AND THEN 25%FOR NEXT 5 YEARS.

FOR NORTHEASTERN STATES – 100% OF THE PROFIT FOR 10 YEARS
SECTION 80ID PROFITS AND GAINS OF HOTELS/CONVENTION CENTRES IN SPECIFIED AREA HOTEL OR CONVENTION CENTRE 100% OF THE PROFIT FOR 5 CONSECUTIVE YEARS FROM THE COMMENCEMENT.
Under Section 80IE CERTAIN UNDERTAKINGS IN NORTH EASTERN STATES UNDERTAKINGS ENGAGED IN MANUFACTURE/ PROVISION OF SPECIFIED GOODS/ SERVICES OR UNDERTAKE SUBSTANTIAL EXPANSION, IN NORTH EASTERN STATES 100% OF THE PROFIT FOR 10 CONSECUTIVE YEARS FROM THE COMMENCEMENT.
SECTION 80JJA PROFITS AND GAINS OF SPECIFIED BUSINESS SPECIFIED BUSINESS 100% OF THE PROFIT FOR 5 CONSECUTIVES FROM THE COMMENCEMENT
Under Section 80JJAA EMPLOYMENT OF NEW EMPLOYEES EMPLOYER WHO WAS SUBJECT TO TAX AUDIT U/S 44AB 30% OF ADDITIONAL EMPLOYEE COST FOR 3 YEARS STARTING FROM THE DATE OF EMPLOYMENT.
SECTION 80LA CERTAIN INCOME OF OFFSHORE BANKING UNITS IN SEZ AND IFSC OFFSHORE BANKING UNITS IN SEZ OR UNIT OF IFSC FOR OFFSHORE BANKING UNIT –
100% OF THE INCOME FOR FIRST 5 YEARS AND 50% FORTHE NEXT 5 YEARS.FOR IFSC – 100% OF THE INCOME FOR 10 CONSECUTIVE YEARS OUT OF 15 YEARS
FROM THE COMMENCEMENT.
Under Section  80PA CERTAIN INCOME OF PRODUCER COMPANIES PRODUCER COMPANIES ENGAGED IN ELIGIBLE BUSINESS 100% OF THE PROFIT
SECTION 80RRB ROYALTY ON PATENTS INDIVIDUALS (INDIAN CITIZEN OR FOREIGN CITIZEN BEING RESIDENT IN INDIA) LOWER OF –

·         RS.3,00,000

·         INCOME SPECIFIED
Under Section 80QQB ROYALTY INCOME OF AUTHORS INDIVIDUALS (INDIAN CITIZEN OR FOREIGN CITIZEN BEING RESIDENT IN INDIA) LOWER OF –

·         RS.3,00,000

·         INCOME SPECIFIED
SECTION 80TTA INTEREST EARNED ON SAVINGS ACCOUNTS INDIVIDUAL BELOWTHE AGE OF 60 YEARS
OR
HUF		 UPTO RS 10,000
Under SECTION 80TTB INTEREST INCOME EARNED ON DEPOSITS (SAVINGS/ FDS) INDIVIDUAL OF 60 YEARS AND ABOVE OF AGE UPTO RS 50,000
SECTION 80U DISABLED INDIVIDUALS INDIVIDUALS NORMAL DISABILITY: RS. 75,000/-
SEVERE DISABILITY: RS. 1,25,000/-

DEDUCTIONS UNDER SCHEDULE VI- OTHER THAN SECTION 80C

DEDUCTIONS UNDER SCHEDULE VI - other than 80C

Income Tax Slab Rate for AY 2025-26 for Individual

Income Tax Deductions

New Income tax Section 80JJAA

Income tax Section 80JJAA allows eligible enterprises to claim deductions against additional staff costs during AY 2024–2025.

/ INCOME TAX

Is you don’t willing to Pay Income Tax ?

Is you don’t willing to Pay Income Tax for the FY 2022-23.

Is you don’t willing to Pay Income Tax ?

  • The Financial Year 2022–2023 hopefully went well. The Next financial year about to start. However, let us know if it was successful in terms of your income tax planning. NO? The majority of us put off planning our income taxes until the very last day of the financial year, which results in us paying taxes on savings or hard-earned money, we could have made. If you are employee, have you given your employer the proofs of your tax saving investments made by us? You should be aware that In case you fail to give investment proofs, your company/employer will deduct more Tax Deducted at Source from your salary income.

Deduction on Other income

Though the due date for certain filling changes, many firms needs that you file respective proof by the Month of March end.

  • It is saddening to have to keep paying high taxes, even after investing under 80C and making other savings. But you can take the income tax refund from Income Tax Dept if you submit your tax returns within the time specified. Isn’t that great? Let’s examine the deductions and exemptions although you could still utilize even when the due date for filling your taxes documentation to your employer have cleared.
  • Don’t worry; Non-salaried individuals are also eligible for the exemptions and deduction. The list of tax laws that could permissibly reduce your taxes for the current financial year is as follows:

1: Eligible deductions under Section 80C, in which you can claim deductions upto Rs.150000-

You may claim deductions upto 1,50,000 INR where you can eligible Deductions under Section 80C.

SCSS (Senior Citizens Savings Scheme)

  • Senior Citizens Savings Scheme is only for elderly adults, those who have chosen to retire at the age of 55 or those who at least 60 years old.
  • A National Savings Certificate must be purchased with a minimum deposit of INR 100. The investment tenure of an National Savings Certificate is 5 Years. You could demand that upon maturity, the entire amount be refunded to their account. If the National Savings Certificate funds are not claimed, they are all added to the plan. You can receive interest at 7.4%.

Fixed Deposit- Tax Saving

  • Early withdrawal is not allowed when Bank fixed deposits have a five-year lock-in period despite of that they are still eligible for Section 80C deductions. The Interest on a five-Year Fixed Deposit is taxable but not eligible for tax breaks. Section 80C permits a tax deduction on investments of up to One and Half Lakhs. It could be opened by Indian citizens who can avail an advantage from interest rates ranging from 5.5% to 7.75%, it depends on the bank. All interest income from Fixed Deposit investments is taxable, and the minimum investment amount for Fixed Deposit’s is INR 1,000/-.

PPF (Public Provident Fund)

  • Tax deductions for annual Public Provident Fund contributions are allowed U/s 80C of Income tax law. Public Provident Fund is a govt sponsored scheme, that offers you sufficient returns. A minimum of Rs. INR 500/- & a maximum of INR 1,50,000/- can be invested annually under this Scheme. Public Provident Fund has a fifteen-year lock-in period.

Sukanya Samridhi Yojana

  • This tax-saving plan has only one saving strategy: to support young girls’ development. Sukanya Samridhi Yojana Saving Scheme is being offered for a young girl who is eligible for tax advantages. The Girl’s Parent or legal guardians are allowed to open an Bank account under Sukanya Samridhi Yojana Saving Scheme until Ten Years of her age. Whenever there are twins, Sukanya Samridhi Yojana Saving Scheme is extended with a third child and it is open to 2 girls’ child. It takes 15 years to deposit the money, and it matures period is 21 years. The interest rate of this scheme is 7.60% per year. There is a minimum investment needed of  INR 250 and a maximum investment limit of INR 15 lakhs.

Life Insurance

  • One way to ensure your family’s financial future after your passing is to protect them with a term insurance plan. However, did you know before that the premiums for these life insurance policies also allow you to reduce your tax liability?
  • The answer is that section 80C allows for a tax deduction for life insurance premiums.

  1. Benefit of U/s Medical Insurance Premium: Section 80D

Benefit of Medical Insurance Premium Section 80D

  • As per the Section 80D of income tax law, it permits claiming deductions form the gross Taxable Income for the payment of Insurance Premiums. If you pay for medical expenses for yourself, children or spouse you are allowed to deduct up to INR 25,000 yearly basis. The maximum income tax deduction for senior citizens medical insurance premiums is INR 50,000. Moreover, you may take the deductibles  up to INR 25,000, if you spend the money on your parents’ behalf.

DEDUCTIONS UNDER SCHEDULE VI - other than 80C

  1. Benefit of U/s Charitable Donations Made: Under Section 80G

  • You must keep the payment receipt from the financial year in order to claim a deduction u/s 80G.  Eligibility of 50% to 100% of the total sum donated to the charitable trust may be deducted from your taxes as deduction of Charitable Donations u/s 80G. you should make sure to verify whether trusts or charitable institute are registered u/s 12A of income tax act, that they have qualified by section 80G certificate. Donations made in cash that are more than 2,000 INR cannot be considered as deducted, so donations over and above INR 2,000 should be made in another way. U/s 80C, contributions made to the Provident fund  A/c are eligible for a Income tax deduction of up to Rs 1,50,000.

  1. Rent paid to House: U/s 80GG

  • Those people who are living in a rental house are eligible for deductions U/s 80GG. But, this tax deduction is only allowed or available to those who are not salaried class people  and do not receive a HRA allowance from their employers.

  1. Benefit of U/s 80D : Health Insurance

  • These days, everyone must purchase health insurance due to the rising cost of medical care bill or cost. If you pay the insurance premiums for your health insurance, you can save up to INR 15k to 20k U/s 80D because it aids in helping you pay for your medical bills in an emergency situation.

  1. Benefit of U/s 80E : Education Loans

  • According to Section 80E, the interest paid on student loans for higher education is still exempt from taxes for the borrower, their kids & their spouse,  An person may deduct the amount of Interest paid by him, not the principal amount paid by him.

  1. Benefit of U/s 80EE : Home Loans

  • One of the best ways to reduce income tax in India is to take out home loans. Presently current situation, house Loans have helped in decrease taxable income. First-time homebuyers may use Section 80EE to deduct up to INR 50,000 from the interest paid on a house Loans over the throughout a Financial year.

  1. Interest on saving Accounts: Section 80TTA:

  • Interest earned on savings accounts is deductible u/s 80TTA. Although any interest income acquired on a savings bank account over INR 10,000/- would be recognized as a taxable income.

Conclusion.

For your convenience, those who have already made above invested should please file their investment proofs on or before dead line or on time, and those who haven’t should invest before the end of March. You can still can file & make  your claim in your ITR for Financial year 2022–23 and receive the income tax refund if you are an employee and missed the Due Date to provide your employer with the necessary documentation.

E filling

Post Written By : Associates – Tarun Kumar 

/ INCOME TAX

Read All about Deduction U/s 80C, 80CCC, 80CCD & 80D

Read All about Deduction under section 80C, 80CCC, 80CCD & 80D
Read All about Deduction under section 80C, 80CCC, 80CCD & 

Section 80C, 80CCC, 80CCD, and 80D deductions:

The tax department provided various deductions from taxable income in Chapter VI A deductions in order to encourage savings and investment among taxpayers. As 80C is the most well-known, other deductions are useful to reduce tax liability for taxpayers. Let us have a clear understanding of these deductions.

Section 80C – Investment deductions:

Section 80C of the Income Tax Act of India identifies a number of expenses and investments that are excluded from paying income tax. It enables an annual maximum deduction of Rs.1.5 lakh from the total taxable income of an investor.

Individual taxpayers and Hindu Undivided Families are the only ones who can use Section 80C. Corporate bodies, partnership companies and other companies are not eligible to use Section 80C tax exemptions.

Section 80C is one of the most well-known and popular sections among taxpayers since it allows them to lower their taxable income by making tax-saving investments or incurring qualified costs. Each year it allows a maximal allowance of Rs 1.5 lakh of total income for taxpayers.

Individuals and HUFs can both take advantage of this deduction. This deduction is not available to corporations, partnership firms, or LLPs. Subsections 80CCC, 80CCD (1), 80CCD (1b), and 80CCD (1c) are all contain in section 80C. (2).

It’s worth noting that the overall ceiling for claiming deductions, including subsections, is Rs 1.5 lakh, with an extra deduction of Rs 50,000 allowed under section 80CCD (1b).

Subsections of Section 80C:

Deductions under Section 80Care of the Income Tax Act of India are divided into sub-sections. These are as follows:

Tax saving sections  Eligible investments for tax exemptions
Section 80C Investments in Provident Funds such as EPF, PPF, etc., payment made towards life insurance premiums, Equity Linked Saving Schemes, payment made towards the principal sum of a home loan, SSY, NSC, SCSS, etc.
Section 80CCC Payment made towards pension plans, as well as mutual funds.
Section 80CCD(1) Payment made towards certain Government-backed schemes such as National Pension System, Atal Pension Yojana, etc.
Section 80CCD(1B) Investments of up to Rs.50,000 in NPS is considered for exemption under this section.
Section 80CCD(2) Employer’s contribution towards NPS (up to 10%, comprising basic salary and dearness allowance, if any) is exempted under this category.

Investments that allow for a deduction under Section 80C of the Income Tax Act:

Investment options Interest Minimum lock-in period Assured return Associated risk
ELSS 12% to 15% (depending on market fluctuation) 3 years No High
NPS 8% to 10% Till the investor reaches 60 years of age (retirement) No High
SCSS 8.60% 5 years Yes low
PPF 7.90% 15 years Yes Low
NSC 7.9% 5 years Yes Low
ULIP 8% to 10% (depending on market fluctuation) 5 years No Moderate
Fixed deposit Up to 8.40% 5 years Yes Low
Sukanya Samriddhi Yojana 8.50% 8 years Yes Low

 

Life insurance premiums:

Premiums paid for life insurance policies qualify for tax benefits under the 80C limit. These exemptions apply to insurance owned by the policyholder, his or her spouse, dependent children, and so forth. Hindu Undivided Exemptions are available to family members as well.

Currently, an annual premium of up to 10% (of the total sum assured of the insurance policy) is tax free under this plan. This clause was changed on April 1, 2012; formerly, premiums of up to 20% (of the total guaranteed) were eligible for a tax deductible under Section 80C.

Public Provident Fund:

Section 80C allows for a tax credit for contributions to the Public Provident Fund (PPF). The highest deposit limit for Public Provident Funds is Rs.1,50,000, allowing an investor to claim the entire amount placed as an exemption under the Income Tax Act.

Under Section 80C of the Income Tax Act, any voluntary contribution made by the employee to the supplied fund is likewise tax deductible.

Rural Bonds from NABARD:

The National Bank for Agriculture and Rural Development (NABARD) is a financial institution that focuses on agriculture and rural development. Under the Income Tax Act of India, NABARD Rural Bonds are eligible for tax exemption. The highest amount that can be deducted is Rs.1.5 lakh under section 80C of the Income Tax Act.

Unit Linked Insurance Plans (ULIPs):

When compared to traditional insurance policies, unit-linked insurance plans provide better long-term returns. They’ve grown in popularity in recent years as a result of the tax benefits provided by Section 80C of the Income Tax Act of 1961. Tax exemptions of up to Rs. 1.5 lakh are available to investors under Section 80C of the Income Tax Act.

Certificate of National Savings:

One of the most popular tax-saving vehicles for risk-averse individuals is the NSC, or National Savings Certificate. NSC interest is compounded semi-annually, and the maximum maturity duration is between 5 and 10 years. Investors are not have to adhere to any limits on the total amount invested in NSC in a financial year; however, Section 80C will only exempt up to Rs.1.5 lakh every financial year.

Tax Saving FD:

Tax Saving FDs are fixed deposit products issued by banks and post offices that qualify for the Section 80C tax deduction. These FDs have a 5-year lock-in term and a maximum tax exemption of Rs.1.5 lakh (on the principal amount). The returns on such instruments, on the other hand, are taxed.

EPF – Employee Provident Fund (EPF)

Employee Provident Fund (EPF) returns, including interest, are exempt from taxation under Section 80C of the Income Tax Act of 1961. It is only available to employees who have been with the company for at least 5 years. Individuals who make voluntary contributions to their EPF accounts are entitled for Section 80C tax exemptions.

Bonds for infrastructure:

Tax breaks on infrastructure bonds are available under Section 80C of the Income Tax Act, if the investment is equal to or greater than Rs.20,000. These long-term secured bonds are still subject to the Rs.1.5 lakh restriction.

Equity-Linked Saving Scheme:

For up to the maximum level, equity linked savings schemes, or ELSS, fall under Section 80C’s exemption category (Rs.1.5 lakh). A three-year lock-in period is required for these investment schemes.

Senior Citizens Savings Scheme:

Any contributions made to the Senior Citizens Saving Scheme (or SCSS) are tax deductible up to the maximum allocated 80C limit, which is Rs. 1.5 lakh. Individuals over the age of 60 (people opting for voluntary retirement scheme are eligible to participate in SCSS after the age of 55) years are eligible to receive benefits from SCSS, which has a 5-year minimum lock-in period.

Principal repayment on a home loan has been made:

Only payments paid toward the principal portion of home loan EMIs are eligible for Section 80C deductions. However, in order to take advantage of this benefit, the borrower must comply with certain conditions. These are as follows:

  • Exemptions are only available if the property’s construction is complete.
  • If the property is transferred within 5 years of possession, it is no longer eligible for the tax exemptions given by Section 80C of the Income Tax Act of 1961.
  • If a handover is done after 5 years of possession, any sum claimed as a tax deduction should be taxable in the transfer year. If you don’t comply with this clause, you’ll be kicked out of Section 80C’s guidelines.

Charges for stamp duty and registration:

The two most significant costs associated with acquiring property ownership are stamp duty and registration fees. The government of India permits stamp duty and registration fees paid for house purchase to be deducted from tax burden up to the 80C limit. Exemptions, on the other hand, can only be claimed in the year in which the duties are paid; otherwise, it will not be qualified for the Section 80C deduction.

Sukanya Samriddhi Yojana:

Sukanya Samriddhi Yojana is a savings scheme created to help girls meet their financial needs for education and marriage. This account can be opened by parents or legal guardians of a girl child under the age of ten, and parents of two or more (only in the case of twins) girls can also invest in this plan. Section 80C allows you to deduct the interest you earn from this investment scheme.

Section 80C contains a number of instruments about which every investor should have a good understanding. The benefits provided by this statute can assist save a significant amount of money on one’s tax bill.

Section 80CCC – Section 80CCD – Pension contribution.

Section  Eligible investments for tax deductions
80 C 80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds etc
80CCC Deduction for life insurance annuity plan. 80CCC allows deduction for payment towards annuity pension plans Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.
80CCD (1) Deduction for NPS Employee’s contribution under section 80CCD (1) Maximum deduction allowed is least of the following

  • 10% of salary (in case taxpayer is employee)
  • 20& of gross total income (in case of self employed)
  • Rs 1.5 Lakh ( limit allowed u/s 80C)
80CCD (1b) Deduction for NPS Additional deduction of Rs 50,000 is allowed for amount deposited to NPS account

Contributions to Atal Pension Yojana is also eligible for deduction.
80CCD (2) Deduction for NPS Employers contribution is allowed for deduction upto 10% of basic salary plus dearness allowance under this section. Benefit in this section is allowed only to salaried individuals and not self employed.

Here are some investment possibilities that qualify for an 80C deduction. They not only assist you in lowering your taxes, but also in increasing the value of your assets. Below is a quick comparison of the many alternatives.

Investment options Average Interest Lock in period for Risk factor
ELSS funds 12% – 15% 3 years High
NPS Scheme 8% – 10% Till 60 years of age High
ULIP 8% – 10% 5 years Medium
Tax saving FD 7% – 8% 5 years Low
PPF 7.10% 5 years Low
Senior citizen savings scheme 7.4% 5years (can be extended for other 3 years) Low
National 6.8% 5 years Low
Sukanya Samriddhi Yojana 8.4% Till girl child reaches 21 years of age
(partial withdrawal allowed when she reached 18 years)		 Low

Get income tax savings from a tax specialist to help you file.

You may have deductions or assets that are eligible for the 80C deduction but haven’t provided documentation to your employer. TDS deductions may be increased as a result of this. You can still claim these deductions if you have the proofs with you during e-filing.

Interest on Savings Accounts (Section 80 TTA):

Interest on a savings bank account is deducted from gross total income.

If you are an individual or a HUF, you can deduct up to Rs 10,000 from your interest income from a bank, co-operative society, or post office savings account. Include interest from a savings account in your other sources of income. Interest income from fixed deposits, recurring deposits, or corporate bonds is not eligible for the Section 80TTA deduction.

Section 80GG – House Rent Paid

House Rent Deduction Payable Where HRA does not get

  • The deduction of Section80GG for rent paid if HRA is not received is available. The taxpayer, spouse or minor child should not own housing at the place of work.
  • The taxpayer must have no residential self-occupied property elsewhere.
  • The taxpayer shall live and pay rent.
  • Anyone can take advantage of the deduction.
  • The lesser of the following is the deduction available.

Deduction available is the least of the following:

  • The loan is paid less than 10% of the total adjusted income.
  • Rs 5,000/- per month.
  • 25% of total adjusted income*.

*After adjusting the Gross Total Income for certain deductions, exempt income, long-term capital profits, and non-resident and foreign company income, an adjustable Gross Total Income is achieved.

Because the restrictions are auto-calculated, using an online e-filing software can be quite simple. There are therefore no complicated calculations you need to worry about.

A deduction of 5 000 Rs per month from Rs 2,000 per month was levied from FY2016-2017 available.

Section 80E – Education interest credit:

Interest deduction on higher education loan:

Individuals are entitled to a tax deduction for interest paid on loans used to pursue higher education. This loan could have been taken for the taxpayer, his or her spouse or children, or for a student over whom the taxpayer has legal custody.

The 80E deduction is allowed for up to 8 years (starting with the year in which the interest begins to be returned) or until the total interest is repaid, whichever comes first. The maximum sum that can be claimed is unlimited.

Section 80EE — Interest on Home Loan 

Deductions for First-Time Home Buyers in Fiscal Years 2017-18 and 2016-17 If the loan was taken in FY 2016-17, this deduction is available in FY 2017-18.

The interest component of a residential house property loan obtained from any financial institution is eligible for income tax benefits under Section 80EE. This part allows you to claim a deduction of up to Rs. 50,000 per financial year. You can claim this deduction until the debt is completely paid off.

To be eligible for a deduction, you must meet certain criteria.

  • The residence should be worth no more than Rs 50 lakhs.
  • The housing loan must be less than Rs 35 lakhs.
  • A Financial Institution or a Housing Finance Company must approve the loan.
  • The loan must be approved between April 1, 2016 and March 31, 2017.
  • You must not own any other dwelling property as of the loan’s approval date.

Only home-owners (individuals) with only one house property on the date of loan sanction are eligible for the deduction under section 80EE. The property must be worth less than Rs 50 lakh, and the mortgage must be for less than Rs 35 lakh. The loan acquired from a financial institution must have been sanctioned between 1 April 2016 and 31 March 2017. On top of the deduction of Rs 2 lakh (on the interest component of your house loan EMI) allowed under section 24, you can deduct an extra Rs 50,000 on your home loan interest.

Financial years 2013-14 and 2014-15 The deduction provided under this section throughout these financial years was for a first-time home worth less than Rs 40 lakh. You can only get this if your loan amount at this time is less than Rs 25 lakh. The loan must be approved between April 1st and March 31st, 2014. The total deduction allowed under this clause is limited to Rs 1 lakh for the fiscal years 2013-14 and 2014-15.

Sections 80EE and 24 of the Income tax Act 

Be quick to claim benefits if you meet the requirements of both Section 24 and Section 80EE of the Income Tax Act.

  • First, use up your Rs. 2 lakh deductible limit under Section 24.
  • Then seek the additional benefits under section 80EE.
  • As a result, this deduction is in addition to the Rs 2 lakh limit set under section 24.

Sections 80EE and 80EEA of the Income tax Act 

In the 2019 Union Budget, a new section 80EEA was added to prolong the tax benefits of interest deduction up to Rs 1,50,000 for housing loans obtained for affordable housing between April 1, 2019 and March 31, 2020. The individual taxpayer must be a first-time home buyer and not be eligible for the deduction under Section 80EE.

Medical Insurance (Section 80D).  –  Medical insurance premium deduction paid

You (as a person or a HUF) can deduct Rs.25,000 for insurance for yourself, your spouse, and your dependant children under section 80D. If your parents are under 60 years old, you can get an additional deduction for their insurance up to Rs 25,000. If the parents are over the age of 60, the deduction amount is Rs 50,000, up from Rs 30,000 in Budget 2018. If both the taxpayer and the parent(s) are 60 or older, the maximum deduction available under this section is Rs.1 lakh.

Tax on health insurance deduction benefits

Disabled Dependent (Section 80DD): Deduction for Handicapped Dependent Relative Rehabilitation

A resident individual or a HUF can take advantage of the Section 80DD deduction, which is available on.

  1. Medical expenses (including nursing care), training, and rehabilitation of a disabled dependent relative.
  2. Payment or deposit to the specific disability-related maintenance scheme.
  • When disability stands at or above 40 percent but is less than 80 percent – Rs 75,000 fixed deduction.
  • If serious invalidity exists (disability amounts to 80% or more) – fixed Rs 1,25,000 deduction.

A certificate of disability from a prescribed medical authority is required in order to claim this deduction. The deduction limit of Rs 50,000 has been increased from the FY 2015-16 to Rs 75,000 and Rs 1,00,000 to Rs 1,25,000.

Section 80DDB – Medical Expenditure: Self or dependent medical expenses deduction

Individuals and HUFs under the age of 60.

A resident individual or a HUF can claim a deduction of up to Rs.40,000. It is available for any expenses incurred in connection with the treatment of specified medical diseases or ailments for himself or any of his dependents. For a HUF, such a deduction is available for medical expenses incurred for any of the HUF members suffering from these prescribed ailments.

For senior citizens and super seniors.

If the person on whose behalf the expenses are incurred is a senior citizen, the individual or HUF taxpayer can claim a deduction of up to Rs 1 lakh. The claim for a senior citizen and super senior citizen until FY 2017-18 was respectively Rs 60,000 and Rs 80,000. Unlike before, all elderly citizens (including super senior citizens) are now eligible for a deduction of up to Rs 1 lakh.

For the purpose of reimbursement claims.

Any reimbursement of the insurer or employer’s medical expenses shall be reduced from the taxpayer’s allowance of a deduction in this section.

Remember that in order to claim such a deduction, you must obtain a prescription for such medical treatment from the concerned doctor. Read more about Section 80DDB in our in-depth article.

Section 80U – Physical Disability: Deduction for people with physical disabilities

A resident suffering physical disability (including blindness) or a mental retardation is subject to a deduction of Rs.75,000. For serious disabilities, a deduction of Rs 1,25,000 may be claimed.

The deduction limits of Rs 50,000 were raised to Rs 75,000 from FY 2015-16 – Rs 1,00,000 were raised to Rs 1,25,000 from section 80U.

Section 80G – Donations: Deduction on Social Causes donations:

The diverse gifts specified in u/s 80G are deductible by up to 100% or 50% with or without limit. Until financial year 2017-18, a senior citizen and a super senior citizen could claim a deduction of Rs 60,000 and Rs 80,000, respectively. Unlike before, all elderly citizens (including super senior citizens) are now eligible for a deduction of up to Rs 1 lakh.

Section 80U – Physical Disability: Deduction for people with physical disabilities

A resident suffering physical disability (including blindness) or a mental retardation is subject to a deduction of Rs.75,000. For serious disabilities, a deduction of Rs 1,25,000 may be claimed.

The deduction limits of Rs 50,000 were raised to Rs 75,000 from FY 2015-16 – Rs 1,00,000 were raised to Rs 1,25,000 from section 80U.

Section 80G – Donations: Deduction on Social Causes donations

The diverse gifts specified in u/s 80G are deductible by up to 100% or 50% with or without limit.

From the financial year 2017-18, any cash donations exceeding Rs 2,000 will not be allowed as a deduction. To qualify for the 80G deduction, donations over Rs 2000 must be made in a form other than cash.

Donations with a full tax deduction and no qualifying limit.

  • The Central Government established the National Defense Fund.
  • Prime Minister’s National Relief Fund.
  • National Foundation for Communal Harmony.
  • A university/educational institution of national renown that has been approved.
  • In any district, a Zila Saksharta Samiti is formed under the chairmanship of the Collector.
  • A fund established by a state government to provide medical assistance to the poor is known as the National Illness Assistance Fund.
  • National Board of Blood Transfusion or any State Board of Blood Transfusion.
  • National Autism, Cerebral Paralysis, Mental Delays and Multiple Disabilities Trust.
  • National Sports Fund.
  • National cultural fund.
  • Development and Application Technology Fund.
  • National Fund for Children.
  • The Relief Fund for Chief Ministers or the Relief Fund for Lieutenant Governors for every State or territory of the Union.
  • The Armed Forces Central Welfare Fund, the Indian Naval Benevolent Fund or the Cyclone Relief Fund of the Air Force, Andhra Pradesh, 1996. 1996.
  • During October 1, 1993 and October 6, 1993, Maharashtra Chief Minister’s Relief Fund.
  • Maharashtra’s Chief Minister’s Earthquake Relief Fund
  • Any fund established by the Gujarat State Government solely for the purpose of providing relief to earthquake victims in Gujarat.
  • Section 80G(5C) applies to any trust, organisation, or fund that provides help to Gujarat earthquake victims (contribution made during January 26, 2001 and September 30, 2001).
  • Armenia Earthquake Relief Fund established by Prime Minister
  • Fund for Africa (Indian Public Contributions).
  • Swachh Bharat Abhiyan ( Was implemented from financial year 2014-15).
  • Clean Ganga Fund is a non-profit organisation dedicated to keeping the (applicable from financial year 2014-15)
  • National Institute on Drug Abuse’ (applicable from financial year 2015-16).

Donations that are eligible for a 50% deduction without any restrictions.

  • The Jawaharlal Nehru Memorial Fund was established in memory of Jawaharlal Nehru.
  • Prime Minister’s Drought Relief Fund.
  • The Indira Gandhi Memorial Trust.
  • The Rajiv Gandhi Foundation.

Donations to the following organisations are tax deductible at 100% up to 10% of adjusted gross total income.

  • To be used for the purpose of encouraging family planning by the government or any approved local authority, institution, or group.
  • Donation by a company to the Indian Olympic Association or any other notified association or institution created in India for the development of sports and games infrastructure or for the sponsorship of sports and games in India.

Donations to the following organisations are qualified for a 50% deduction up to 10% of adjusted gross total income.

  • Any other fund or institution that meets the requirements of Section 80G. (5).
  • Any charitable purpose other than promoting family planning to be used by the government or any local authority.
  • Any Indian authority established for the aim of dealing with and meeting the demand for housing, or for the planning, development, or enhancement of cities, towns, or villages, or both.
  • Any corporation referred to in Section 10(26BB) for the purpose of advancing minority community interests.
  • Repairs or renovations to any notified temple, mosque, gurudwara, church, or other location.

Section 80GGB: Company Contribution : Deduction for corporate contributions to political parties

Section 80GGB allows an Indian company to deduct the amount it contributes to any political party or electoral trust. Contributions made in any form other than cash are eligible for a tax deduction.

Section 80GGC: Contribution to Political Parties : Deduction for contributions made to political parties by anyone.

Individual taxpayers can deduct any amount they provide to a political party or electoral trust under section 80GGC. Companies, municipal governments, and artificial juridical persons who are entirely or partially supported by the government are not eligible. Only when you pay other than cash can this deduction be used.

Patent Royalty (Section 80RRB): Deduction for any income received as a result of a patent royalty

80RRB any royalty income received on or after April 1, 2003, under the Patents Act 1970, is eligible for a deduction of up to Rs.3 lakh or the income received, whichever is less. The taxpayer must be a single patentee who is also an Indian resident. A certificate in the required form, duly signed by the prescribed authority, must be provided by the taxpayer.

 Section 80TTB – Interest Income 

Interest on deposits for senior citizens is deductible.

In Budget 2018, a new section 80TTB was introduced, allowing deductions for interest income from deposits held by senior citizens. The deduction is limited to Rs.50,000.

There will be no further deductions under section 80TTA. Along with Section 80 TTB, Section 194A of the Act will be amended to raise the TDS threshold limit on interest income payable to senior citizens. The previous limit was Rs 10,000, which was increased to Rs 50,000 in the most recent Budget.

/ Company Law Compliances

CORPORATE AND PROFESSIONAL UPDATE JUNE 24, 2016

Today updates:

www.caindelhiindia.com; Corporate updates
www.caindelhiindia.com; Corporate updates

DIRECT TAX:

Income Tax: Where issue of allowability of MAT credit was decided by AO by order dated 8-12-2011, even though issue of surcharge and cess was also allowed to be carried forward by AO by order dated 29-11-2012, revisional order passed on 30-3-2015 denying MAT credit would be time barred [2016] 70 taxmann.com 155 (Kolkata – Trib.)

Income Tax : SLP dismissed against High Court’s ruling that even if assessee voluntarily disclosed a sum subsequent to search and offered said sum to tax, penalty levied under section 271(1)(c) was justified
[2016] 70 taxmann.com 175 (SC)/[2015] 373 ITR 681 (SC)/[2015] 279 CTR 536 (SC)

Registration u/s 12AA cannot be denied on town planning activities continuing from earlier years.[ ITO vs. Moradabad Development Authority (ITAT Delhi)].

Income tax : Where as per sale agreement, transaction of sale of property was to be completed after five years of agreement at buyer’s option but possession of property was allowed to be taken over by buyer on next day of agreement in part performance of agreement, transfer within meaning of section 2(47) took place when possession was taken over by buyer and not when buyer exercised option to buy said property after five years – [2016] 70 taxmann 118 (Panaji – Trib.)

Income Tax: Recording of satisfaction by Assessing Officer of person searched that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized belong to person other than person searched is a sine qua non for initiating action under section 153C; where Assessing Officer of person searched and such other person is same, then also, first while making assessment in case of person searched, Assessing Officer has to record such satisfaction, then, copy of this satisfaction note is to be placed in file of such other person and relevant document should also be transferred from file of person searched to file of such other person and thereafter, in capacity of Assessing Officer of such other person, he has to issue notice under section 153A, read with section 153C – [2016] 70 taxmann 156 (Delhi – Trib.)

Registration u/s 12AA cannot be denied on town Planning Activities continuing from earlier years [ITO vs. Moradabad Development Authority (ITAT Delhi)].

Income Tax: CBDT clarifies that the higher turnover threshold of Rs. 2 crores for non-audit of accounts is granted only to assesses, opting for presumptive taxation scheme u/s 44AD.

Income Tax : Interest U/s. 244A on excess self assessment tax payment cannot be denied. [CIT vs. Birla Corporation Limited].

Income tax :  ITAT can examine whether AO has rightly exercised discretionary powers to extend due date of Special Audit Report
Principal Commissioner of Income-tax v. Nilkanth Concast (P.) Ltd.
[2016] 70 taxmann.com 157 (Delhi)

Income Tax: Reassessment held as invalid as notice was affixed at the wrong address Income-tax Officer, Ward 2 (3), Chandigarh v. Om Parkash  Kukreja [2016] 70 taxmann.com 147 (Chandigarh – Trib.)

Income Tax: Tax audit threshold of Rs 2 cr. only applicable to taxpayers opting for presumptive tax scheme: CBDT

Income Tax: Proceedings can be initiated against the amalgamated company on account of the failure of the amalgamating company to distribute the statutory percentage of the accumulated profits. In the given case Calcutta High Court held that Tribunal was not right in holding that the proceedings against the amalgamated company could not be initiated on account of the failure of the amalgamating company to distribute the statutory percentage of the accumulated profits.( CIT Vs. M/s. Shaw Wallace Distilleries Ltd.)

Income Tax: CBDT vide Notification No. 45/2016 dated 14-th June , 2016 has exempted the tax in the hand of the resident on the investment made in the shares issued by the start-up companies, if the consideration is in excess of the face value for issue of shares  of the “start-up” companies. For the purposes of this notification, “startup” shall mean a company in which the public are not substantially interested and which fulfills the conditions specified in the notification of the Government of India. Further the Central Government, hereby notifies the ‘classes of persons’ for the purposes of the said clause as being the ‘person’ defined under sub-section (31) of section 2 of the said Act.

Income Tax: CBDT has made 15th Amendments Rules, 2016 vide Notification No. 48/2016 dated 20th June, 2016.CBDT has made amendments in FATCA rules for registration, Due Diligence &information maintenance. Further, in the said rules, in Appendix-II Form 61B has been substituted with the new amended form with effect from 1st January, 2017.

Income Tax: CBDT has issued clarification regarding Threshold limit of tax audit under section 44AB and section 44AD vide press release dated 20th June 2016. The higher threshold for non-audit of accounts has been given only to assessee opting for presumptive taxation scheme under section 44AD.

Income Tax: CBDT vide Notification No. 47/2016 dated 17th June 2016 has notified that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified in the notification, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934CBDT vide Notification No. 47/2016 dated 17th June 2016 has notified that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified in the notification, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934

CBDT vide Notification No. 46/2016 dated 17th June 2016 has notified that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified in clause (23DA) of section 10 of the said Act received by any securitization trust as defined in clause (d) of the Explanation to section 115TC of the said Act.

Income Tax: New Explanation to sec. 263 doesn’t give unfettered powers to CIT to revise every order of AO Narayan Tatu Rane v.    Income-tax Officer, Ward 27(1)(1), Mumbai [2016] 70 taxmann.com 227 (Mumbai – Trib.)

Income Tax: Deeming fiction of sec. 50 won’t be triggered on transfer of rights in land Smt. Devindraben I. Barot v. Smt. Devindraben I. Barot  [2016] 70 taxmann.com 235 (Ahmedabad – Trib.)

Deferred consideration contingent on uncertain future event cannot be taxed before vesting of right to receive via {CIT vs. Mrs. Hemal Raju Shete (Bombay High Court)}

Where the Assessee uses a network of computers for its business purposes, the LAN/WAN equipment is an essential part and to be regarded as computer peripherals. Hence depreciation will be allowed @ 60%.- (Global Trust Bank Limited, New vs. Department Of Income Tax) Delhi

INDIRECT TAX:

CENVAT : Refund claims under rule 5 of the CENVAT Credit Rules, 2004 : This scheme is applicable only to service tax registrants who are exporters of services, with respect to refund claims under rule 5 of the CENVAT Credit Rules, 2004, which have been filed on or before 31-3-2015, and which have not been disposed of as on the date of the issue of the circular dated 10-11-2015. As clarified therein, claims which have been remanded are out of the purview of this scheme

Excise : Settlement Commission can reject application only in two cases : (a) assessee has not made full and true disclosure [section 32F], or (b) assessee has not co-operated in proceedings before it [section 32L]; there is no provision to send matter back merely because of differences between assessee and department – [2016] 70 taxmann 168 (Delhi)

Central Excise: Valuation – excise duty on the sample bottles under Rule 8 of the Valuation Rules – nothing is flowing back to the manufacture from the distributors – genuineness of transaction not doubted by the revenue – no demand can be raised – Tri

VAT  : Non-production of ‘C’-Forms – Demanding a higher rate of tax under the CST Act, 1956 due to the non production of ‘C’ Forms – The appellants and petitioners are not entitled to the reliefs prayed for – HC

Service tax : Penalty couldn’t be waived off on grounds of financial hardship if taxpayer failed to deposit collected tax Amcon Engineers (P.) Ltd. v. commissioner of Service Tax, Delhi [2016] 70 taxmann.com 217 (New Delhi – CESTAT)

An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent, or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. It was held in the given case that Nortel India is an independent company and a separate taxable entity under the Act. There is no material on record which would indicate that its office was used as an office by the Assessee or Nortel Canada the same cannot lead to the conclusion that Nortel India was acting as a sales outlet. (M/S Nortel Networks India International Inc. Vs DIT)

Excise : Gujarat HC grants refund of Education Cess & Secondary and Higher Secondary Education Cess (‘ paid by assessee under mistake of law on Oil Cess levied u/s 15 of Oil Industry Development Act ; Holds that such Cesses can only be levied on duties of excise and merely because machinery provisions of Central Excise Act have been incorporated in OID Act for collection and refund of Cess, it cannot be inferred that Oil Cess assumes the character of ‘excise duty’; Notes that Oil Cess is levied and administered by Ministry of Petroleum and Natural Gas, whereas conditions precedent for levy of said Cesses are that excise duty should be levied and collected by Ministry of Finance .Gujrat High Court

Excise : Activities of image scanning, editing and loading on CD are classifiable as photography services Global Digital Color Lab v. Commissioner of Central Excise, Jaipur-I   [2016] 70 taxmann.com 226 (New Delhi – CESTAT)

Excise : Dept. can’t revoke excise registration on allegations of fraud without hearing assessee Commissioner, Central Excise Commissioner ate, Udaipur v. Mangalam Cement Ltd., Kota [2016] 70 taxmann.com 241 (Rajasthan)

Excise : Service of notice by registered post without acknowledgment due isn’t a valid service under excise: HC RP Casting (P.) Ltd. v. Customs, Excise & Service Tax Appellate Tribunal, New Delhi[2016] 70 taxmann.com 242 (Rajasthan)

Service tax : No service tax on under construction flats if price includes land value via {Suresh Kumar Bansal vs UOI (Delhi High Court)}

Service tax : No service tax audit by service tax department or CAG via {Mega Cabs Pvt. Ltd. Vs. Union of India & Ors. (Delhi High Court)}

Other updates :

RBI : RBI decides to simplify and rationalise the process of registration of new NBFCs In order to make the process of registration of new NBFCs smoother and hassle free, the application form for registration of new NBFCs and the checklist of documents to be submitted have been revised. The number of documents to be submitted by the NBFC applicants has been reduced from existing set of 45 documents to 7-8 in the revised process. Secondly, from now onwards, there would be two different types of applications for non-deposit taking NBFCs (NBFC-ND) based on Sources of Funds & Customer Interface as follows: a) Type I – NBFC-ND not accepting public funds1 / not intending to accept public funds in the future and not having customer interface2 / not intending to have customer interface in the future b) Type II – NBFC-ND accepting public funds/ intending to accept public funds in the future and/or having customer interface/intending to have customer interface in the future The processing of cases for Type I – NBFC-ND applicants would be on fast track mode.

SEBI : SEBI invites applications from CA firms, for empanelment to take up assignments relating to forensic audit of SEBI registered RTA/STA.

Central Depository Services (India) Limited [CDSL] has launched ‘m-Voting’, a mobile app for e-Voting. This m-Voting app enables Android based smart phone users to cast their vote on company resolutions even while they are on the move. The m-Voting can also be used for voting at the AGM/EGM venue. The m-Voting app can be downloaded from Google Play Store for Android based phones, while the app for iPhone and Windows Phone would be released shortly and can be downloaded from the App Store and Windows Phone Store, respectively.

Govt. allows 100% FDI in e-commerce, aviation and defense

Sebi : SAT sets aside 5 years ban on merchant banker who failed to examine bank statement of issuer Co. Almondz Global Securities Ltd. v. Securities and Exchange Board of India [2016] 70 taxmann.com 222 (SAT – Mumbai)

MCA : Construction carried out by builder under joint development agreement amounts to construction services N. Bala Baskar v. Union of India, Ministry of Finance [2016] 70 taxmann.com 151 (Madras)

MCA : Ministry of Corporate Affairs has notified that Annual Filing Forms for Companies Act, 1956 – 23AC (Form for filing balance sheet and other documents with the Registrar), 23ACA (Form for filing Profit and Loss account and other documents with the Register), 23B (Information to the Registrar by company for appointment of auditor), 20B (Form for filing annual return by a company having a share capital with the Registrar), 21A (Particulars of annual return for the company not having share capital) are likely to be available on MCA21 portal by mid-August 2016. The Ministry had earlier removed these e-forms due to maintenance of the website. Stakeholders are requested to plan accordingly.

The NDA government on Monday announced relaxed foreign direct investment (FDI) norms in single brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products. It has allowed up to 100% foreign direct investment (FDI) in defence through the approval route, 100% FDI in food product e-commerce, 100% FDI in greenfield pharma via the automatic route, 100% in browfield pharma – of which 74% will be through automatic route – 100% FDI in scheduled airlines, and up to 49% FDI in airlines through automatic route. While FDI in defence beyond 49% was already allowed through approval route and up to 49% through automatic route, the new norms have done away with the condition of access to ‘state-of-art’ technology in the country for FDI more than 49%.

Sebi : SAT sets aside 5 years ban on merchant banker who failed to examine bank statement of issuer Co. Almondz Global Securities Ltd. v. Securities and Exchange Board of India [2016] 70 taxmann.com 222 (SAT – Mumbai)

MCA : Construction carried out by builder under joint development agreement amounts to construction services N. Bala Baskar v. Union of India, Ministry of Finance [2016] 70 taxmann.com 151 (Madras)

MCA : Ministry of Corporate Affairs has notified that Annual Filing Forms for Companies Act, 1956 – 23AC (Form for filing balance sheet and other documents with the Registrar), 23ACA (Form for filing Profit and Loss account and other documents with the Register), 23B (Information to the Registrar by company for appointment of auditor), 20B (Form for filing annual return by a company having a share capital with the Registrar), 21A (Particulars of annual return for the company not having share capital) are likely to be available on MCA21 portal by mid-August 2016. The Ministry had earlier removed these e-forms due to maintenance of the website. Stakeholders are requested to plan accordingly.

The NDA government on Monday announced relaxed foreign direct investment (FDI) norms in single brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products. It has allowed up to 100% foreign direct investment (FDI) in defence through the approval route, 100% FDI in food product e-commerce, 100% FDI in greenfield pharma via the automatic route, 100% in browfield pharma – of which 74% will be through automatic route – 100% FDI in scheduled airlines, and up to 49% FDI in airlines through automatic route. While FDI in defence beyond 49% was already allowed through approval route and up to 49% through automatic route, the new norms have done away with the condition of access to ‘state-of-art’ technology in the country for FDI more than 49%.

MCA : Forms AOC-4 XBRL, GNL-1, INC-6, INC-2 and CRA-2 are likely to be revised on MCA21 Company Forms Download page w.e.f 25th June 2016. Stakeholders are advised to check the latest version before filing.

PPF : The Central Government has amended Public Provident Fund Scheme, 1968. This Scheme may be called Public Provident Fund (Amendment) Scheme, 2016. It shall come into force on the date of its publication in the Official Gazette. The Government changed the norms for Public Provident Fund deposits, allowing the subscribers of the scheme to prematurely close their accounts and withdrawal the complete amount after five years. However, the withdrawal will be allowed for expenditure towards higher education or medical treatment. Currently, the lock-in-period for complete withdrawal from PPF accounts is 15 years.

Annual filing forms for Companies Act, 1956 – 23AC, 23ACA, 23B, 20B, 21A are likely to be available on MCA21 portal by mid-August 2016.

Interest rate on PPF retains at 8.1% for quarter ending September, 2016, same as stayed in 1st Quarter of 2016-17.

MCA has changed Version of e-forms MR-1 (Return of Appointment of MD/WTD/Manager), CHG-1 (Application for Registration of Creation, Modification of charge other than those related to debenture), CHG-4 (Particulars for satisfaction of charge thereof), MGT-14 (Filing of Resolutions and Agreements to the Registrar) w.e.f 7th June, 2016. The form has been updated on MCA Portal. Only new version of e-form will be acceptable. Stakeholders are requested to plan accordingly and ensure that latest version of form is downloaded for e-filing. Form- wise date of last version change is available at on the website of MCA.

KEY DATES

Payment of ESI for the month of May- 21-06-2016

E-Payment of DVAT & CST tax for the month of May -21-06-2016

Issue of TDS certificate in case of payment/credit made in the month of May for purchase of property u/s 194IA -22-06-2016

Issue of DVAT certificate for deduction made in month of May -22-06-2016

Advance Information for 1st fortnight of July of functions with booking cost more than Rs. 1 lakh in Banquet halls; hotels etc. in Delhi in form No. BE-2 under DVAT Act. – 27-06-2016

“Only the weak are cruel. Gentleness can only be expected from the strong.”

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/ INCOME TAX

PPF : Investment Limit, Income Tax Benefit, Features

PPF SCHEME: INVESTMENT LIMIT, INCOME TAX BENEFIT, FEATURES

The Public Provident Fund is the darling of all tax saving investments. No wonder! You invest in it and you get a deduction on your income. Besides, the interest you earn on it is tax-free. Since it is a scheme run by the Government of India, it is also totally safe. You can be sure no one is going to run away with your money. Here, we summarise the scheme, tell you how to open a PPF account and what to expect.

Features on PPF

  • To open a PPF account, drop  by a State Bank of India branch. SBI’s subsidiary banks can also open accounts. Alist of these subsidiary banks is available on the bank’s Web site. You can even visit the nationalised bank in your neighborhood. Selected branches of nationalised banks can also open accounts. The head post office or selection grade sub-post offices also open PPF accounts.
  • You will have to fill up a form. You can take a look or download the form from SBI’s web site. Along with the form, attach a photograph and submit your Permanent Account Number. If you do not have a PAN, then furnish an attested copy of either your ration card, voter’s identity card or passport. When you open an account, you will be given a passbook (just like a bank pass book) in which all subscriptions, interest accrued, withdrawals and loans are recorded.
  • You can have only one PPF account in your name. If, at any point, it is detected that you have two accounts, the second account you have opened will be closed, and you will be refunded only the principal amount, not the interest.
  • You cannot open a joint account with another individual. The account can only be opened in one person’s name. You are free to nominate one or more individuals. On the death of the account holder, nominees cannot keep the account going by making contributions. If there are no nominees, the legal heirs get the money. You can open one account for yourself and others for your child/ children. But, on your death, your children cannot make any additional contributions.
  • The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000 or as such declared by Govt of India. The interest you will earn is 8% per annum.
  • Let’s say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child’s account. In this case you can in my opinion take the maximum benefit of Rs. 1,00,000/- U/s. 80C.  As Limit of Maximum Investment in a year of 70000/- is fixed by Public provident Fund Act not by Income Tax law.
  • You can make up to 12 deposits in one year. You don’t have to put in this money at one go.
  • The PPF account is valid for 15 years. The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account. So, if you opened it in FY 2006-07 (this financial year), you will be able to withdraw it 15 years later, starting March 31, 2007 (end of this financial year). That means your PPF matures on April 1, 2022. It can be extended for a period of five years after that.
  • During these five years, you earn the rate of interest and can also make fresh deposits. Once your account expires, you can open a new one. The only limitation is that you cannot withdraw it until seven years are completed, after which 50% of your deposits can be withdrawn, if needed.

  • Deposit date in Cheque payments:- 

Till recently, in case of a PPF when a subscriber used to make deposits by local cheque or demand draft, the date of tender of cheque or draft at the accounting office was treated as the date of deposit of PPF, provided the said cheque was duly honoured on presentation for encashment. In contrast, in case of other small savings schemes like Post Office Savings Scheme (POSS), Senior Citizen Savings Scheme 2004 (SCSS) any money deposited in these accounts by means of a cheque, the date of encashment of the cheque is treated as the date of deposit.Thus, in order to remove inconsistency between PPF and other small savings schemes and to bring in uniformity in the reckoning of the date of deposit of all the schemes, the government has issued necessary instructions through the circular to banks / other intermediaries which hold PPF accounts for the individuals to treat the date of realisation of the cheque or demand draft by the subscriber as the date of deposit.This issue becomes particularly relevant in respect of deposits made towards the end of the financial year by cheque / demand draft because if the same is not realised by March 31, then the same will be treated as deposits for the following financial year. This would also have ramifications in respect of the tax deduction being claimed by the individuals in a particular tax year.

  • Opening an account for a minor:-

There have been certain practical hurdles in respect of opening of accounts for minor vis-à-vis some intermediary agencies. This clarification reiterates that as per the rules under PPF scheme, an individual may on his own behalf or on behalf of a minor of whom he is a guardian, open a PPF account. Further, either father or mother can open PPF account on behalf of his / her minor child, but both cannot open the account for same child.

Provident Fund;

/ compliance calendar

Compliance Calendar for the Month of June 2023

Compliance Calendar for the Month of June 2023 ..

Compliance Calendar for the Month of June 2023

Statutory and Tax Compliance Calendar for June 2023

 

S. No. Statue Purpose Compliance Period Due Date Compliance Details
1 Income Tax TDS/TCS Liability Deposit May-23 7-Jun-23 Due date of depositing TDS/TCS liabilities under the Income Tax Act, 1961 for the previous month.
2 GST GSTR-7- TDS return under GST May-23 10-Jun-23 GSTR 7 is a return to be filed by the persons who is required to deduct TDS (Tax deducted at source) under GST.
3 GST GSTR-8- TCS return under GST May-23 10-Jun-23 GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST.
4 GST GSTR-1 May-23 11-Jun-23 1. GST Filing of returns by a registered person with aggregate turnover exceeding INR 5 Crores during the preceding year.
2. Registered person, with aggregate turnover of less than INR 5 Crores during the preceding year, opted for monthly filing of returns under QRMP.
5 GST IFF (Invoice Furnishing Facility) May-23 13-Jun-23 IFF of a registered person with turnover less than INR 5 Crores during the preceding year and who has opted for quarterly filing of return under QRMP.
6 GST GSTR -6 May-23 13-Jun-23 Due Date for filing return by Input Service Distributors.
7 Income Tax TDS Certificate Apr-23 14-Jun-23 Due date for issue of TDS Certificate for tax deducted under sections 194-IA, 194-IB, 194M, and 194S in the month of April, 2023.

Note: Applicable in the case of the specified person mentioned under section 194S.
8 Income Tax Form 24G May-23 15-Jun-23 Due date for furnishing of form 24G by an office of the government where TDS/TCS for the month of May, 2023 has been paid without the production of a challan.
9 Income Tax TDS Certificate Jan to March, 2023 15-Jun-23 Quarterly TDS certificates (in respect of tax deducted for payments other than salary) for the quarter ending March, 2023.The first.
10 Income Tax Advance Tax FY 2023-24 15-Jun-23 ​First installment of advance tax for FY 2023-24.
11 Income Tax TDS Certificate (Form 16) FY 2022-23 15-Jun-23 ​​Certificate of tax deducted at source to employees in respect of salary paid and tax deducted during Financial Year 2022-23.
12 Income Tax Form No. 3BB May-23 15-Jun-23 ​​Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes have been modified after registering in the system for the month of May 2023.
13 Income Tax Form No. 64D FY 2022-23 15-Jun-23 ​Furnishing of statement (in Form No. 64D) of income paid or credited by an investment fund to its unit holder for the previous year 2022-23.
14 Labour Law Providend Fund / ESI May-23 15-Jun-23 Due Date for payment of Provident fund and ESI contribution for the previous month.
15 GST GSTR – 3B May-23 20-Jun-23 1. GST Filing of returns by a registered person with aggregate turnover exceeding INR 5 Crores during the preceding year.
2. Registered person, with aggregate turnover of less than INR 5 Crores during the underpreceding year, opted for monthly filing of return under QRMP.
16 GST GSTR -5 May-23 20-Jun-23 GSTR-5 to be filed by Non-Resident Taxable Person for the previous month.
17 GST GSTR -5A May-23 20-Jun-23 GSTR-5A to be filed by OIDAR Service Providers for the previous month.
18 GST Due date of Payment of Tax May-23 25-Jun-23 Due date of payment of GST liability by the registered person whose aggregate turnover was less than INR 5 Crores during preceeding year and who has opted for quarterly filing of return.
19 Income Tax Form No. 3CEK FY 2022-23 29-Jun-23 ​​​Due date for e-filing of a statement (in Form No. 3CEK) by an eligible investment fund under section 9A in respect of its activities in the financial year 2022-23.
20 Company Law DPT-3 FY 2022-23 30-Jun-23 DPT 3 is a return of deposits filed to furnish information about deposits and/or outstanding receipts of loans or money other than deposits.
21 Income Tax TDS Challan cum Statement May-23 30-Jun-23 Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA, 194-IB, 194-M, and 194S in the month of May, 2023.

Note: Applicable in case of a specified person as mentioned under section 194S.
22 Income Tax Securities transaction tax FY 2022-23 30-Jun-23 ​Return in respect of securities transaction tax for the financial year 2022-23.
23 Income Tax Return of non-deduction of TDS Jan to March, 2023 30-Jun-23 ​Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending March 31, 2023​.
24 Income Tax Form No. 64C FY 2022-23 30-Jun-23 ​Statement to be furnished (in Form No. 64C) by Alternative Investment Fund (AIF) to unitholders in respect of income distributed during the previous year 2022-23.
25 Income Tax Report u/s Section 35AC(4)/(5) FY 2022-23 30-Jun-23 ​​Report by an approved institution/public sector company under section 35AC(4)/(5) for the year ending March 31, 2023.
26 Income Tax Form No. 64B FY 2022-23 30-Jun-23 ​Due date for furnishing of statement of income distributed by business trust to its unit holders during the financial year 2022-23. This statement is required to be furnished to the unit holders in form No. 64B.
27 Income Tax Equalisation Levy statement FY 2022-23 30-Jun-23 ​Furnishing of Equalisation Levy statement for the Financial Year 2022-23.

Compliance Calendar for the Month of June 2023

Extension of time period for filing Form DPT 3

/ compliance calendar

Taxation & Statutory Compliance for October 2022

Taxation & Statutory Compliance for October 2022

  • Company Law Compliance – DIR-3 Financial Year 2021-22 15-October -22 “Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatorily required to file form DIR-3 KYC before 30th September of the immediately next financial year. Such due date is further extended till 15th October 2022.”

  • The Company Law Compliance – AOC-4 Financial Year 2021-22 29-October -22 Form AOC 4 is used to file the financial statements for each financial year with the Registrar of Companies (ROC).

  • Company Law Compliance – Form-8 Financial Year 2021-22 29-October -22 Statement of Account & Solvency by all LLPs.

  • The Company Law Compliance -MSME Return Apr-Sep, 2022 30-October 22 Half-yearly return with the registrar in respect of outstanding payments to Micro or Small Enterprise.

  • Labour Law Employees’ State Insurance / Provident Fund  Sep-22 15-October -22 Due Date for payment of Provident fund and ESI contribution for the previous month.

Goods and services Tax Compliance

  • Goods and services Tax Compliance – ST GST CMP-08 Jul-Sep, 2022 18-October -22 Form GST CMP-08 is used to declare the details or summary of self-assessed tax payable by taxpayers who have opted for a composition levy.

  • The Goods and services Tax Compliance – GSTR – 3B Sep-22 20-October 2022 “1. GST Filing of returns by a registered person with aggregate turnover exceeding INR 5 Crores during the preceding year.

  • Registered person, with aggregate turnover of less than INR 5 Crores during the preceding year, opted for monthly filing of return under Quarterly Return Filing and Monthly Payment of Taxes(QRMP) scheme”

  • Goods and services Tax Compliance – GSTR-7- TDS return under GST Sep-22 10-October -22 GSTR 7 is a return to be filed by the persons who are required to deduct Tax deducted at source under GST.

  • The Goods and services Tax Compliance -GSTR -5 Sep-22 20-Oct-22 GSTR-5 is to be filed by a Non-Resident Taxable Person for the previous month.

  • Goods and services Tax Compliance GSTR-3B-State-B Sep-22 24-Oct-22 “Due Date of filing of GSTR-3B for the taxpayer with Aggregate turnover up to INR 5 crores during the previous year and who has opted for Quarterly filing of return under Quarterly Return Filing and Monthly Payment of Taxes(QRMP) scheme.

  • The Goods and services Tax Compliance – GSTR -5A September 2022, 20-Oct-22 GSTR-5A is to be filed by OIDAR Service Providers for the previous month.

  • Goods and services Tax Compliance – GSTR-3B-State-A September -2022, 20-Oct-22 “Due Date of filing of GSTR-3B for a taxpayer with Aggregate turnover up to INR 5 crores during the previous year and who has opted for Quarterly filing of return under Quarterly Return Filing and Monthly Payment of Taxes(QRMP) scheme.

  • The Goods and services Tax Compliance – GSTR-8- Tax collected at source return under GST Sep-22 10-Oct-22 GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct Tax collected at source under GST.

  • Goods and services Tax Compliance – GSTR-1 Sep-22 11-Oct-22 ” 1. GST Filing of returns by a registered person with aggregate turnover exceeding INR 5 Crores during the preceding year. GST Registered person, with aggregate turnover of less than INR 5 Crores during the preceding year, opted for monthly filing of return under Quarterly Return Filing and Monthly Payment of Taxes(QRMP) scheme under Goods and Services Tax (GST)”

  • The Goods and services Tax Compliance – GSTR-1- Quarterly Return Filing and Monthly Payment of Taxes(QRMP) scheme  September  2022, 13-Oct-22 GSTR-1 of a GST registered person with turnover less than INR 5 Crores during the preceding year and who has opted for quarterly filing of return under Quarterly Return Filing and Monthly Payment of Taxes .

  • Goods and services Tax Compliance – GSTR -6 Sep-22 13-Oct-22 Due Date for filing return by Input Service Distributors.

Income tax Compliance

  • The Income Tax compliance – Form No. 15G/H Jul-Sep, 2022 15-Oct-22 Upload declarations received from recipients in Form No. 15G/15H during the quarter ending September 2022.

  • Income Tax Audit Report U/s 44AB Financial Year 2021-22 31-Oct-22 Audit report U/s 44AB for the assessment year 2022-23 in the case of an assessee who is also required to submit a report pertaining to international or specified domestic transactions U/s 92E.

  • The Income Tax compliance – FORM NO. 3CEB Financial Year 2021-22 31-Oct-22 Report to be furnished in Form 3CEB in respect of the international transactions and specified domestic transactions.

  • The Income Tax compliance – FORM NO. 3CEJ FY 2021-22 31-Oct-22 Due date for e-filing of the report (in Form No. 3CEJ) by an eligible investment fund in respect of arm’s length price of the remuneration paid to the fund manager (if the assessee is required to submit a return of income on October 31, 2022).

  • Income Tax Audit of accounts in case of Companies eligible for weighted Deduction Financial Year 2021-22 31-Oct-22 Submit a copy of the audit of accounts to the Secretary, Department of Scientific and Industrial Research in case the company is eligible for weighted deduction U/s 35(2AB) [if the company does not have any international/specified domestic transaction].

  • The Income Tax compliance – Income tax return Financial Year 2021-22 31-Oct-22 “Due date for filing of return of income for the assessment year 2022-23 if the assessee (not having any international or specified domestic transaction) is

    (a) corporate-assessee or

    (b) non-corporate assessee (whose books of account are required to be audited) or (c)partner of a firm whose accounts are required to be audited or the spouse of such partner if the provisions of under section 5A applies”.

  • Income Tax Form No. 3CEB Financial Year 2021-22 31-Oct-22 Intimation by a designated constituent entity, resident in India, of an international group in Form no. 3CEB for the accounting year 2021-22.

tax-deducted-at-sources compliance

  • The Income Tax compliance – Form 24G Sep-22 15-Oct-22 The due date for furnishing form 24G by an office of the government where Tax Deducted at Source / Tax collected at source for the month of September 2022 has been paid without the production of a challan.

  • Income Tax – Tax Deducted at Source Certificate September -22 15-Oct-22 Due date for issue of Tax Deducted at Source Certificate for tax deducted U/s 194-IA, 194-IB, and 194M in the month of August 2022

  • Income Tax- Tax Deducted at Source Challan cum Statement Sep-22 30-Oct-22 Due date for furnishing of challan-cum-statement in respect of tax deducted U/s 194-IA, 194-M, 194-IB, in the month of September 2022.

  • The Income Tax compliance – Tax Deducted at Source return Jul-Sep, 2022 31-Oct-22 Quarterly statement of Tax Deducted at Source deposited for the quarter ending September 30, 2022.

  • Income Tax- Tax Deducted at Source / Tax collected at source liability deposit Sep-22 7-Oct-22 Due date of depositing Tax Deducted at Source / Tax collected at source liabilities under Income Tax Act, 1961 for the previous month.

  • The Income Tax compliance – Tax Deducted at Source Liability Deposit Jul-Sep, 2022 7-Oct-22 Due date for deposit of Tax Deducted at Source when Assessing Officer has permitted quarterly deposit of Tax Deducted at Source U/s 192, 194A, 194D, or 194H.

  • Income Tax – Tax collected at source Return Jul-Sep, 2022 15-Oct-22 Quarterly statement of TCS deposited for the quarter ending September 30, 2022.

  • Income Tax compliance – Tax collected at source Certificate July- September , 2022 30-Oct-22 Quarterly TCS certificate in respect of tax collected by any person for the quarter ending September 30, 2022.