Professional Tax Slab for FY 2014-15 and amended vide Notification No. 682-L dt.28th July, 2016 read with Notification No. 1197-FT dt.16th August, 2016.

The rate of Profession tax in West Bengal amended vide Notification No.  682-L dt.28th July, 2016 read with Notification No. 1197-FT dt.16th August, 2016 where Employees earning Above Rs.8,500 but not exceeding Rs. 10,000 has to pay to nil rate of tax instead of Rs.90/- p.m. prior to notification.

Click on the link below for the entire chart-

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Capital Gains calculator: Updated till F.Y. 2016-17.

Union Budget 2017-18: Ban on cash transaction of more than Rs 3 lakh

A ban on cash transaction of more than Rs 3 lakh has been proposed in the Budget for 2017-18.

In his Union Budget 2017-18, Finance Minister, Sri Arun Jaitley, has promised a lot for common man, middle-class society and has taken various steps toward digitisation of India.  However, in this hustle to digitise India, he has proposed introduction of a new penalty on cash transaction. 

It has been proposed to insert Section 269ST in the Income-tax Act, 1961, in order to levy penalty of equal amount on cash receipt of Rs. 300,000 or more.  In the Budget he said “no person shall receive an amount of Rs 3 lakh or more by way of cash in aggregate from a person in a day; in respect of a single transaction; or in respect of transactions relating to one event or occasion from a person”.

It means that any person can not withdraw more than Rs. 3 lakh from a same a bank in a day. However, the restriction of receipt of Rs. 300,000 will not apply to receipts  by Government, any banking company, post office savings bank or co-operative bank.

This new section is similar to existing section 269T and section 269SS of the Act.  However, withdrawing cash from a bank account is a cash receipt transaction. Accordingly, in our view, withdrawing cash from bank to the extent of Rs. 300,000 is permissible and any penny more than would be penalised.  

Though the above penalty is going to effect the common man, this would not have been the intention of our honorable FM.  We will have to wait for more guidelines from him in this regard.  

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Case Law: CIT vs. Hissaria Brothers (Supreme Court)

S. 275: Penalty proceedings for contravention of Sections 269SS & 269T are not related to the assessment proceeding but are independent of it. Therefore, the completion of appellate proceedings arising out of the assessment proceedings has no relevance. Consequently, the limitation prescribed by s. 275(1)(a) does not apply. The limitation period prescribed in s. 275(1)(c) applies to such penalty proceedings

Penalty proceedings for default in not having transactions through the bank as required under Sections 269SS and 269T are not related to the assessment proceeding but are independent of it, therefore, the completion of appellate proceedings arising out of the assessment proceedings or the other proceedings during which the penalty proceedings under Sections 271D and 271E may have been initiated has no relevance for sustaining or not sustaining the penalty proceedings. It was held that clause (a) of sub-section (1) of Section 275 was not attracted to such proceedings Read the rest of this entry »

Applicability of Income Computation and disclosure Standards

ICDS deferred. Will apply from AY 2017-18 Read the rest of this entry »

Threshold Limit of tax audit under section 44AB and section 44AD

The Central Board of Direct Taxes (CBDT) has issued a press release clarifying the threshold limit of tax audit under Section 44AB and Section 44AD of the Income-tax Act, 1961 (the Act).

If an eligible person opts for presumptive taxation scheme under Section 44AD(1) of the Act, he shall not be required to get his accounts audited if the total turnover or gross receipts of the relevant previous year does not exceed two crore rupees. It has been clarified that the higher threshold for non-audit of accounts has been given only to taxpayers opting for presumptive taxation scheme under Section 44AD of the Act Read the rest of this entry »