TDS Claim without verification- new TDS Rule from may 12

Income tax department issued new rules about tax deduction at source. In these rules the main attraction is if the difference between TDS claim and matching tds in form 26AS is less than 5000 rupees, the TDS claim will be accepted without any verification. Income tax department issued instruction no. 4 dated 25-05-2012 about these new rules. Full instruction is as follows.


SECTION 143 OF THE INCOME-TAX ACT, 1961 - ASSESSMENT - GENERAL - PROCESSING OF RETURNS OF A.Y. 2011-12 - STEPS TO CLEAR BACKLOG - WITHDRAWAL OF INSTRUCTION NO. 1/2012, DATED 2-2-2012INSTRUCTION NO. 4/2012 [F. NO. 225/34/2011-ITA.II], DATED 25-5-2012

The Board has decided to withdraw Instruction no. 01/2012 issued on 2nd February, 2012 on the subject above with immediate effect. The following decisions have been taken in this regard:

 (i)  In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. Five thousands, the TDS claim may be accepted without verification.
(ii)  Where there is zero TDS matching, TDS credit shall be allowed only after due verification.
(iii)  Where there are TDS claims with invalid TAN, the TDS credit for such claims is not to be allowed.
(iv)  In all other cases TDS credit shall be allowed after due verification

For more details visit http://www.incometaxreturnindia.in/
Fike your income tax return with http://www.incometaxreturnindia.in/

NRE vs NRO Account

Key difference of NRE (Non Resident External Rupee acocunt) and NRO (Non Residents Ordinary Account )maintained with banks is:

	NRE Account		NRO Account
	Can be credited with foreign currency earnings from overseas.		Can be credited with foreign currency earnings from overseas and INR earnings in India.
	Account maintained in Indian Rupees.		Account maintained in Indian Rupees.
	Withdrawals in Indian Rupees and Foreign Currency.		Withdrawals in Indian Rupees only.
	4% p.a. Interest Rate.		4% p.a. Interest Rate.
	Exempt from tax in India.		30% tax deducted at source on interest earned.
	Principal: Freely repatriable. Interest earned: Freely repatriable.		Principal: Not repatriable. Interest earned: Repatriable after tax deduction. Repatriation of up to $ 1 million per financial year, as per RBI provisions.
	Joint A/C holder has to be an NRI.		Joint A/C holder may be a Resident Indian or an NRI.
	Family member resident in India can be authorized to operate the account. ATM Card for both NRI and Mandate holder.		Family member resident in India can be authorized to operate the account. ATM Card for both NRI and Mandate holder.
	Allows NRIs easy flexibility of transferring funds from overseas into India and then transferring them back from India to abroad with ease.		Allows an NRI to manage income earned in India. (Local income like Rent, Property Sale, Inheritance, etc.).

NRI's file your income tax return with http://www.incomtaxreturnindia.in/

Income Tax Rates

Assessment Year 2012-13 (Previous year 2011-12)

	Income Tax Rates/Slab for Assessment Year 2012-13 (F Y 2011-12) Rate(%age) Up to 1,80,000 Up to 1,90,000 (for women) Up to 2,50,000 (for resident individual of 65 years till 80 years) NIL 1,80,001 – 5,00,000 Up to 500,000 (for resident individual of 80 years and above, Tax is nil) 10 Nil 5,00,001 – 8,00,000 20 8,00,001 upwards 30

	Income Tax Rates/Slab for Assessment Year 2012-13 (F Y 2011-12) Rate(%age) Up to 1,80,000 Up to 1,90,000 (for women) Up to 2,50,000 (for resident individual of 65 years till 80 years) NIL 1,80,001 – 5,00,000 Up to 500,000 (for resident individual of 80 years and above, Tax is nil) 10 Nil 5,00,001 – 8,00,000 20 8,00,001 upwards 30

efiling is now compulsory for Individual if Income exceeds Rs 10 lakh

e-Filing has been made compulsory for the person

1) who is an Individual or
2) a Hindu Undivided Family,
3) if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds ten lakh rupees
4) for AY 2012-13 onwards.

E-filing for such individuals was optional till 2010-11.

The department had received a record number of 1.64 crore e-returns in the 2011-12 financial year.
“We have done it to encourage people to go for e-filing of returns. This makes the entire process faster.

However, the digital signature is not mandatory for them,” a finance ministry official said.

Currently business houses with receipts of Rs. 60 lakh and professionals with income of Rs. 15 lakh are mandatorily required to e-file their return with digital signature.

As on March 31, 2012, there were 19,684,592 tax payers who had registered for e-filing.