maternity benifits

I do not know the Bank Branch Code of the branch in which I deposited tax. Can I leave this field blank?Ans. Bank Branch code or BSR code is a 7-digit code allotted to banks by RBI. This is different from the branch code, which is used for bank drafts etc. This number is given in the OLTAS challan or can be obtained from the bank branch or from the search facility at NSDL-TIN website. It is mandatory to quote BSR code both in challan details and deductee details. Hence, this field cannot be left blank. Government deductors transfer tax by book entry, in which case the BSR code can be left blank.
What if e-TDS/TCS return does not contain PANs of all deductees?Ans. In case PANs of some of the deductees are not mentioned in the e-TDS/TCS return, the Provisional Receipt will mention the count of missing PANs in the e-TDS/TCS return. The details of missing PANs (to the extent it can be collected from the deductees) may be filed within seven days of the date of Provisional Receipt to TIN-FC. e-TDS/TCS return will be accepted even with missing PANs. However, if PAN of deductees is not given in the TDS return, tax deducted from payment made to him cannot be posted to the statement of TDS to be issued to him u/s 203AA.
Where can I file my TDS/TCS return?Ans. You can file your TDS/TCS return at any of the TIN-FCs managed by NSDL. TIN-FCs are set-up at specified locations across the country. Details are given in the NSDL-TIN website. These can also be furnished directly at NSDL-TIN web-site.

Will annual returns/quarterly statements furnished by entities who are eligible to file the same in physical form be accepted by the Income Tax Department?Ans. No. Physical TDS/TCS returns/statements will be received at TIN-FCs




















What are the due dates for filing quarterly TDS Returns?Ans. The due dates for filing quarterly TDS returns, both electronic and paper are as under:
Quarter
Due Date for Form Nos. 24Q & 26Q
Due Date for Form No. 27Q
Due Date for Form No. 27EQ
April to June
15 July
14 July
15 July
July to September
15 October
14 October
15 October
October to December
15 January
14 January
15 January
January to March
15 June
14 April/14 June
30 April


Should I file TDS certificates and bank challans along with the e-TDS/TCS return? Ans. No, you need not file TDS certificates and bank challans for tax deposited along with the e-TDS/TCS return.

Can more than one e-TDS/TCS return be filed in a single computer media (CD/floppy)?Ans. No, each e-TDS/TCS return should be in a separate CD/floppy along with separate Form No. 27A for each return.

Can a single e-TDS/TCS return be filed in two or more floppies?Ans. No, if the size of the return is more than what can be stored in one floppy then it should be stored in a CD.

Can e-TDS/TCS return be filed in compressed form?Ans. Yes, if e-TDS/TCS return file is filed in compressed form, it should be compressed using Winzip 8.1 or ZipItFast 3.0 (or higher version compression utility only), so as to ensure quick and smooth acceptance of the file.

Do I have to affix a label on the e-TDS/TCS return CD/floppy? What do I mention on the label affixed on the e-TDS/TCS return CD/floppy?Ans. Yes, you should affix a label on the e-TDS/TCS CD/floppy for identification purpose. You should mention your PAN, TAN, name, Form No., Financial Year and period to which return pertains on the label affixed on the e-TDS/TCS return CD/floppy.

What if e-TDS/TCS return does not contain PANs of all deductees?Ans. In case PANs of some of the deductees are not mentioned in your e-TDS/TCS return, the Provisional Receipt will contain the count of missing PANs in the e-TDS/TCS return. You may file the details of missing PANs within seven days of the date of Provisional Receipt to TIN-FC as a corrected e-TDS/TCS return.

If a deductor faces any difficulty in filing of e-TDS return where can it approach for help?Ans. The details regarding the help required for filing of e-TDS are available on the Income-Tax Department website and the NSDL-TIN website. The TIN-FCs are also available for all related help in the e-filing of TDS
Pregnancy
The H.R.C.M.A. states that an employer cannot discriminate against an employee on the basis of pregnancy. This ensures that a woman cannot lose her job or have the conditions of her employment affected because she is pregnant, provided that she meets the one-year minimum employment requirement (see section on Maternity Benefits in the "Women and Work" chapter). The Alberta Human Rights and Citizenship Commission has the power to investigate complaints that this kind of discrimination has taken place. Discrimination on the basis of pregnancy includes all aspects of that condition, such as appearance, physical limitations, and absence for giving birth. As well, where employee benefit plans cover absences from work caused by health-related reasons, a pregnant employee must be treated in a nondiscriminatory fashion. In other words, she must receive the same level of benefits, at the same cost, as other employees absent for health related reasons, for the entire period of her health-related absence.



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MATERNITY AND PARENTAL LEAVE AND BENEFITS
As soon as you learn that you are pregnant or adopting a child and think that you want to return to your present job after the baby is born, begin planning your leave. It is important to plan early so that you may obtain the maximum leave available to you. It is also important to know whether federal or provincial law governs your job, since the maternity paternity and adoption provisions under each are different. Also, if you belong to a union, be sure to check your collective agreement, since it may have provisions, which lengthen the period of leave you may take.
To be eligible for maternity, parental or sickness benefits you must show that: your regular weekly earnings have been decreased by more than 40%; and you have accumulated 600 insured hours in the last 52 weeks or since your last claim, (this period is the qualifying period). The qualifying period is the shorter of: the 52 week-period immediately before the start date of a claim, or the period since the start of a previous EI claim if that claim had started during the 52 week period.
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Can I Lose My Job If I Become Pregnant Or Adopt A Child?
No. If you have worked 12 consecutive months for your employer, you are entitled to maternity leave whether or not your employer consents to it. This applies to both full time and part time employees. In addition, your employer is required by law to reinstate you in the same or similar position that you had before taking leave. You must give at least four weeks written notice of your intention to return to work at least four weeks before the end of the leave.
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What If There Is No Job To Return To?
If your employer has shut down, in part or in full, during the time when you are on maternity leave (but plans to start operations again within 12 months of the end of your leave) you are protected. In this case, your employer is required to reinstate you in your former position or provide you with alternative work if this is not possible.
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Can I Collect Unemployment Insurance While I Am On Maternity/Paternity Leave?
Yes. If you meet the requirements and you apply at the right time, you are eligible for 15 weeks of maternity benefits (for a total of 17 weeks' benefit period, of which two weeks are a waiting period without benefits). As well, there is an additional 35 weeks of parental benefits that are available to either the mother or the father of the baby or can be split between them both. This means that you could qualify for a maximum of 50 weeks of unemployment benefits.
In some instances, the two-week waiting period may be waived or deferred, but only under certain circumstances. For example: if you get paid sick leave pay from your employer following your last day worked, the waiting period may be waived.
If parental benefits are being shared by both parents, only one waiting period needs to be served. For example, if a 2-week waiting period has already been served for maternity benefits by the first parent, the second parent claiming parental benefits can have the waiting period deferred. In the event the second parent subsequently claims regular or sickness benefits after parental benefits, the 2-week waiting period would then need to be served.
If you receive group insurance payments, you can serve the 2-week waiting period during the last two weeks that these payments are being paid.
At the same time you are applying for maternity benefits, you and your partner can also apply for parental benefits. Delaying in filing your claim for benefits beyond 4 weeks from the time your earnings have decreased by more than 40% may cause loss of benefits.
Try to get both your maternity leave and Unemployment benefits to start at the same time, so that you may receive the maximum amount of Unemployment benefits available to you. Your local Human Resources Development of Canada (HRDC) office will be able to answer any other questions you have about these benefits.
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Can I Collect Disability Premiums While I Am on Maternity Leave?
Yes, you could receive up to a maximum of 65 weeks of combined sickness, maternity and parental benefits instead of the normal combined maximum of 50 weeks. In order to be eligible for the increased number of weeks, the following conditions must be met during your benefit period: you have not been paid regular benefits; you have been paid sickness, maternity and parental benefits; and you have been paid less than the maximum of l5 weeks of sickness benefits or less than 35 weeks of parental benefits.
If you work while on maternity or sickness benefits, your earnings will be deducted dollar for dollar from your benefits. While on the other hand, if you work while on parental benefits you can earn $50 or 25% of your weekly benefits, whichever is higher?
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (ICAI)

ADVERTISEMENT GUIDELINES
(Set up under the Chartered Accountants Act, 1949)
ICAI Guidelines No.1-CA(7)/ Council Guidelines/01/2008, Dated 14th May,2008
GUIDELINES FOR ADVERTISEMENT FOR THE MEMBERS IN PRACTICE
(Issued Pursuant to Clause (7) of Part I of
the First Schedule to the Chartered Accountants Act, 1949.)
The Members may advertise through a write up setting out their particulars or of
their firms and services provided by them subject to the following Guidelines and
must be presented in such a manner as to maintain the profession’s good
reputation, dignity and its ability to serve the public interest.
1. The Member(s)/Firm(s) should ensure that the contents of the Write up are
true to the best of their knowledge and belief and are in conformity with
these Guidelines and be aware that the Institute of Chartered Accountants of
India does not own any responsibility whatsoever for such contents or claims
by the Writer Member(s) / Firm(s).
2. Definitions
For the purpose of these Guidelines:
(i) The “Act” means The Chartered Accountants Act, 1949.
(ii) “Institute” means the Institute of Chartered Accountants of India.
(iii) “write up” means the writing of particulars according to the information
given in the Guidelines setting out services rendered by the Members or firms
and any writing or display of the particulars of the Member(s) in Practice or of
firm(s) issued, circulated or published by way of print or electronic mode or
otherwise including in newspapers, journals, magazines and websites ( in Push
as well in Pull mode) in accordance with the Guidelines.
(The terms not defined herein have the same meaning as assigned to them in the Chartered
Accountants Act, 1949 and the Rules, Regulations and Guidelines made there under.)
2
3. The write-up may include only the following information:
(A) For Members
(i) Name ……………… Chartered Accountant
(ii) Membership No. with Institute
(iii) Age
(iv) Date of becoming ACA
(v) Date of becoming FCA
(vi) Date from which COP held
(vii) Recognized qualifications
(viii) Languages known
(ix) Telephone/Mobile/Fax No.
(x) Professional Address
(xi) Web
(xii) E-mail
(xiii) C A Logo
(xiv) Passport size photograph
(xv) Details of Employees (Nos. - )
(a) Chartered Accountants -
(b) Other Professionals –
(c) Articles/Audit Assistants
(d) Other Employees
(xvi) Names of the employees and their particulars on the lines allowed
for a member as stated above.
(xvii) Services provided
(a) ………………………………
(b) ………………………………
(c) ………………………………
(B) For Firms
(i) Name of the Firm …………………… Chartered Accountants
(ii) Firm Registration No. with Institute
(iii) Year of establishment.
(iv) Professional Address(s)
(v) Working Hours
(vi) Tel. No(s)/Mobile No./Fax No(s)
(vii) Web address
(viii) E-mail
(ix) No. of partners
3
(x) Name of the proprietor/partners and their particulars on the lines
allowed for a member as stated above including passport size
photograph.
(xi) C A Logo
(xii) Details of Employees (Nos. - )
(a) Chartered Accountants -
(b) Other professionals –
(c) Articles/Audit Assistants
(d) Other employees
(xiii) Names of the employees of the firm and their particulars on the lines
allowed for a member as stated above.
(xiv) Services provided:
(a) ……………………………….
(b) ………………………………
(c) ………………………………
The write-up may have the Signature, Name of the Member/ Name of the
Partner signing on behalf of the firm, Place and Date.
4. Other Conditions
(i) The write-up should not be false or misleading and bring the profession into
disrepute.
(ii) The write-up should not claim superiority over any other Member(s)/Firm(s).
(iii) The write-up should not be indecent, sensational or otherwise of such
nature which may likely to bring the profession into disrepute.
(iv) The write-up should not contain testimonials or endorsements concerning
Member(s).
(v) The write-up should not contain any other representation(s) that may like to
cause a person to misunderstand and/or to be deceived.
(vi) The write-up should not violate the provisions of the ‘Act’, Rules made there
under and ‘The Chartered Accountants Regulations,1988’.
(vii) The write-up should not include the names of the clients (both past and
present)
(viii) The write-up should not be of font size exceeding 14.
(ix) The write-up should not contain any information other than stated in Para 3
hereinabove.
(x) The write-up should not contain any information about achievements /
award or any other position held.
(xi) The particulars of information required at para (ii) of 3(A) and para (ii) of
3(B) above is mandatory.








Professional tax may rise by Rs 5,000
July, 17th 2008
Doctors, lawyers and other professionals —both salaried and self-employed— may now have to pay a higher professional tax.
Acceding a long-pending demand of the state governments, the Centre has decided to raise the ceiling on professional tax from Rs 2,500 to Rs 7,500 per annum. The Union Cabinet is expected to take up the proposal on Thursday.
Professional tax is levied by state governments or local bodies on professions, trades, callings and employment. The power to levy the tax flows from Article 276 of the Constitution that also caps the tax amount. The Centre will amend article 276 to raise the limit. Although Delhi does not impose the tax, states such as Karnataka, Maharashtra, West Bengal, Andhra Pradesh, Tamil Nadu and Gujarat do so.
The limit was fixed in 1998 at Rs 2,500 per annum. Increase in tax has been a long-pending demand of the states, pointing at rise in income levels in the past few years.
The Centre’s reluctance to state governments’ demand for a hike in the limit is borne out of the fact that taxpayers who pay professional tax are eligible for a deduction under the Income-Tax Act. So, while the state governments’ revenues grow, the Centre loses tax on this count.
However, with the direct tax collections witnessing stupendous growth, state governments had intensified pressure on the Centre. Their argument is that the tax does not have a substantial impact on Centre’s total kitty as the collection under this head by states was only Rs 3,500 crore.
Some state governments wanted the limit to be increased to Rs 10,000 per annum, but the Centre has agreed to raise it to Rs 7,500.


B.Deductions in respect of certain payments

24[Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.
2580C. 26(1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees.
(2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee
(i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);
(ii) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan referred to in clause (xii), on the life of persons specified in sub-section (4):
Provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity;
(iii) by way of deduction from the salary payable by or on behalf of the Government to any individual being a sum deducted in accordance with the conditions of his service, for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum so deducted does not exceed one-fifth of the salary;
(iv) as a contribution by an individual to any provident fund to which the Provident Funds Act, 1925 (19 of 1925) applies;
(v) as a contribution to any provident fund set up by the Central Government and notified27 by it in this behalf in the Official Gazette, where such contribution is to an account standing in the name of any person specified in sub-section (4);
(vi) as a contribution by an employee to a recognised provident fund;
(vii) as a contribution by an employee to an approved superannuation fund;
(viii) as subscription to any such security of the Central Government or any such deposit scheme as that Government may, by notification in the Official Gazette, specify in this behalf;
(ix) as subscription to any such savings certificate as defined in clause (c) of section 228 of the Government Savings Certificates Act, 1959 (46 of 1959), as the Central Government may, by notification29 in the Official Gazette, specify in this behalf;
(x) as a contribution, in the name of any person specified in sub-section (4), for participation in the Unit-linked Insurance Plan, 1971 (hereafter in this section referred to as the Unit-linked Insurance Plan) specified in Schedule II of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(xi) as a contribution in the name of any person specified in sub-section (4) for participation in any such unit-linked insurance plan of the LIC Mutual Fund 30[referred to in] clause (23D) of section 10, as the Central Government may, by notification31 in the Official Gazette, specify in this behalf;
(xii) to effect or to keep in force a contract for such annuity plan of the Life Insurance Corporation or any other insurer as the Central Government may, by notification32 in the Official Gazette, specify;
(xiii) as subscription to any units of any Mutual Fund 33[referred to in] clause (23D) of section 10 or from the Administrator or the specified company under any plan formulated in accordance with such scheme as the Central Government may, by notification34 in the Official Gazette, specify in this behalf;
(xiv) as a contribution by an individual to any pension fund set up by any Mutual Fund 35[referred to in] clause (23D) of section 10 or by the Administrator or the specified company, as the Central Government may, by notification36 in the Official Gazette, specify in this behalf;
(xv) as subscription to any such deposit scheme of, or as a contribution to any such pension fund set up by, the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987) (hereafter in this section referred to as the National Housing Bank), as the Central Government may, by notification in the Official Gazette, specify in this behalf;
(xvi) as subscription to any such deposit scheme of
(a) a public sector company which is engaged in providing long-term finance for construction or purchase of houses in India for residential purposes; or
(b) any authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both,
as the Central Government may, by notification37 in the Official Gazette, specify in this behalf;
(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,
(a) to any university, college, school or other educational institution situated within India;
(b) for the purpose of full-time education of any of the persons specified in sub-section (4);
(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head Income from house property (or which would, if it had not been used for the assessees own residence, have been chargeable to tax under that head), where such payments are made towards or by way of
(a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or
(b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or
(c) repayment of the amount borrowed by the assessee from
(1) the Central Government or any State Government, or
(2) any bank, including a co-operative bank, or
(3) the Life Insurance Corporation, or
(4) the National Housing Bank, or
(5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or
(6) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or
(7) the assessees employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or
(8) the assessees employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society; or
(d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee,
but shall not include any payment towards or by way of
(A) the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder or member; or
(B) the cost of any addition or alteration to, or renovation or repair of, the house property which is carried out after the issue of the completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or
(C) any expenditure in respect of which deduction is allowable under the provisions of section 24;
(xix) as subscription to equity shares or debentures forming part of any eligible issue of capital approved by the Board on an application made by a public company or as subscription to any eligible issue of capital by any public financial institution in the prescribed form38.
Explanation.For the purposes of this clause,
(i) eligible issue of capital means an issue made by a public company formed and registered in India or a public financial institution and the entire proceeds of the issue are utilised wholly and exclusively for the purposes of any business referred to in sub-section (4) of section 80-IA;
(ii) public company shall have the meaning assigned to it in section 3 39 of the Companies Act, 1956 (1 of 1956);
(iii) public financial institution shall have the meaning assigned to it in section 4A 40 of the Companies Act, 1956 (1 of 1956);
(xx) as subscription to any units of any mutual fund referred to in clause (23D) of section 10 and approved by the Board on an application made by such mutual fund in the prescribed form41:
Provided that this clause shall apply if the amount of subscription to such units is subscribed only in the eligible issue of capital of any company.
Explanation.For the purposes of this clause eligible issue of capital means an issue referred to in clause (i) of the Explanation to clause (xix) of sub-section (2);
42[(xxi) as term deposit
(a) for a fixed period of not less than five years with a scheduled bank; and
(b) which is in accordance with a scheme43 framed and notified, by the Central Government, in the Official Gazette for the purposes of this clause.
Explanation.For the purposes of this clause, scheduled bank means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), or a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank, being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);]
44[(xxii) as subscription to such bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by notification in the Official Gazette44a, specify in this behalf;]
44b[(xxiii) in an account under the Senior Citizens Savings Scheme Rules, 200444c;
(xxiv) as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.]
(3) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an insurance policy other than a contract for a deferred annuity as is not in excess of twenty per cent of the actual capital sum assured.
Explanation.In calculating any such actual capital sum assured, no account shall be taken
(i) of the value of any premiums agreed to be returned, or
(ii) of any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person.
(4) The persons referred to in sub-section (2) shall be the following, namely:
(a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-section,
(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and
(ii) in the case of a Hindu undivided family, any member thereof;
(b) for the purposes of clause (ii) of that sub-section, in the case of an individual, the individual, the wife or husband and any child of such individual;
(c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual.
(5) Where, in any previous year, an assessee
(i) terminates his contract of insurance referred to in clause (i) of sub-section (2), by notice to that effect or where the contract ceases to be in force by reason of failure to pay any premium, by not reviving contract of insurance,
(a) in case of any single premium policy, within two years after the date of commencement of insurance; or
(b) in any other case, before premiums have been paid for two years; or
(ii) terminates his participation in any unit-linked insurance plan referred to in clause (x) or clause (xi) of sub-section (2), by notice to that effect or where he ceases to participate by reason of failure to pay any contribution, by not reviving his participation, before contributions in respect of such participation have been paid for five years; or
(iii) transfers the house property referred to in clause (xviii) of sub-section (2) before the expiry of five years from the end of the financial year in which possession of such property is obtained by him, or receives back, whether by way of refund or otherwise, any sum specified in that clause,
then,
(a) no deduction shall be allowed to the assessee under sub-section (1) with reference to any of the sums, referred to in clauses (i), (x), (xi) and (xviii) of sub-section (2), paid in such previous year; and
(b) the aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.
(6) If any equity shares or debentures, with reference to the cost of which a deduction is allowed under sub-section (1), are sold or otherwise transferred by the assessee to any person at any time within a period of three years from the date of their acquisition, the aggregate amount of the deductions of income so allowed in respect of such equity shares or debentures in the previous year or years preceding the previous year in which such sale or transfer has taken place shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.
Explanation.A person shall be treated as having acquired any shares or debentures on the date on which his name is entered in relation to those shares or debentures in the register of members or of debenture-holders, as the case may be, of the public company.
44d[(6A) If any amount, including interest accrued thereon, is withdrawn by the assessee from his account referred to in clause (xxiii) or clause (xxiv) of sub-section (2), before the expiry of the period of five years from the date of its deposit, the amount so withdrawn shall be deemed to be the income of the assessee of the previous year in which the amount is withdrawn and shall be liable to tax in the assessment year relevant to such previous year:
Provided that the amount liable to tax shall not include the following amounts, namely:
(i) any amount of interest, relating to deposits referred to in clause (xxiii) or clause (xxiv) of sub-section (2), which has been included in the total income of the assessee of the previous year or years preceding such previous year; and
(ii) any amount received by the nominee or legal heir of the assessee, on the death of such assessee, other than interest, if any, accrued thereon, which was not included in the total income of the assessee for the previous year or years preceding such previous year.]
(7) For the purposes of this section,
(a) the insurance, deferred annuity, provident fund and superannuation fund referred to in clauses (i) to (vii);
(b) unit-linked insurance plan and annuity plan referred to in clauses (xii) to (xiiia);
(c) pension fund and subscription to deposit scheme referred to in clauses (xiiic) to (xiva);
(d) amount borrowed for purchase or construction of a residential house referred to in clause (xv),
of sub-section (2) of section 88 shall be eligible for deduction under the corresponding provisions of this section and the deduction shall be allowed in accordance with the provisions of this section.
(8) In this section,
(i) Administrator means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(ii) contribution to any fund shall not include any sums in repayment of loan;
(iii) insurance shall include
(a) a policy of insurance on the life of an individual or the spouse or the child of such individual or a member of a Hindu undivided family securing the payment of specified sum on the stipulated date of maturity, if such person is alive on such date notwithstanding that the policy of insurance provides only for the return of premiums paid (with or without any interest thereon) in the event of such person dying before the said stipulated date;
(b) a policy of insurance effected by an individual or a member of a Hindu undivided family for the benefit of a minor with the object of enabling the minor, after he has attained majority to secure insurance on his own life by adopting the policy and on his being alive on a date (after such adoption) specified in the policy in this behalf;
(iv) Life Insurance Corporation means the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956);
(v) public company shall have the same meaning as in section 3 45 of the Companies Act, 1956 (1 of 1956);
(vi) security means a Government security as defined in clause (2) of section 2 46 of the Public Debt Act, 1944 (18 of 1944);
(vii) specified company means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(viii)transfer shall be deemed to include also the transactions referred to in clause (f) of section 269UA.]




Procedure for e-payment: of taxes
1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282 or ITNS 283, as applicable.
2. Enter its PAN / TAN as applicable. There will be an online check on the validity of the PAN / TAN entered.
3. If PAN/ TAN is valid the taxpayer will be allowed to fill up other challan details like accounting head under which payment is made, name and address of TAN and also select the bank through which payment is to be made, etc.
4. On submission of data entered a confirmation screen will be displayed. If the taxpayer confirms the data entered in the challan, it will be directed to the net-banking site of the bank.
5. The taxpayer will login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enter payment details at the bank site.
6. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
It's better to file physical returns as online mode is complicated
July, 15th 2008
Sub Heading : It's better to file physical returns as online mode is complicated, doubles work
Salaried individuals these days can pay most bills online. But what about income tax returns? Salaried individuals and Hindu undivided families (HUFs) can file their tax returns online (also called e-filing). However, it is not compulsory for them to do so. In many cases, it may not even be desirable. Reason: it can be troublesome.
Consider: Without a digital signature, you still have to go the tax office to submit your forms. It thus doubles your work. Getting a digital signature costs you upwards of Rs1,000, and even that will work only for one year or two. You have to keep paying for renewing your digital signature.
Two, the government has not bothered to update certain tax changes in the online forms. Thus you may claim mediclaim deductions of Rs15,000, but the site will only allow you Rs10,000. Three, e-filing is supposed to do away with paperwork. But some provisions in the Income Tax Act have been left unchanged, and thus the taxman may still insist that you submit tax proof (like form 16 given by employers). Four, even after you have finished filling in the e-form, it may take three or four time to upload it.
To file taxes online, individuals have to log on to https:www.incometaxindiaefiling.gov.in. But don't expect this to be a smooth affair.
After logging onto the website, the right Indian Income Tax Return (ITRs) form has to be chosen. There are eight ITRs from which you will have to choose the one that applies to you.
For most salaried individuals, ITR-1 will do as long as they don't have any capital gains or income from house property. For those who do, ITR-2 is the form to fill up.
Once the relevant form has been identified, it has to be downloaded from the following link https:incometaxindiaefiling.gov.inportalindividual_huf.do. This form is an excel file.
There are certain glitches in the ITR 2 excel form. For the financial year 2007-08 (or assessment year 2008-09), the maximum deduction allowed for paying mediclaim premiums under Section 80D of the Income Tax Act was Rs15,000, and Rs20,000, in case of senior citizens. This form it seems hasn't been updated. "The column for mentioning deduction under section 80 (D) pertaining to mediclaim deductions doesn't accept an amount above Rs10,000, in spite of the fact that the deduction limit was increased during Budget 2007 to Rs15,000 for individuals and Rs20,000 for senior citizens," says Paras Savla, a chartered accountant who runs Paras Savla & Associates. It allows a deduction of Rs10,000 and Rs15,000 for senior citizens, as was the norm for financial year 2006-07 (or assessment year 2007-08). Therefore, if you are a senior citizen paying a mediclaim premium of more than Rs15,000, the maximum deduction this form will allow you is Rs15,000.
The form needs to be filled up with the help of Form 16 (given by your employer). Once the form has been filled up, it needs to be saved as an XML file. You don't need to be an expert for this. The form has a "generate -XML" button in-built into it. After this you need to create a user ID and password. The user ID is actually your income tax permanent account number (PAN).
After logging in using the user ID and password, you will have to click on the submit return link on the home page of https:www.incometaxindiaefiling.gov.in. While uploading the file, you need to encrypt the file using a digital signature. A digital signature ensures that no one else files your return. After you have encrypted the file, you need to upload it. A digital signature is essentially a file which needs to be installed on your computer. When e-filing the return, portions of this file need to be pasted at specified places in the form. There are various intermediaries in the market who issue this signature. Some of the intermediaries are MTNL CA, TCS, etc (see table). Depending on which intermediary you approach, the digital signature can be obtained for a period of one or two years and usually costs above Rs1,000.This makes the entire process of filing income tax returns online relatively more expensive.
Fees for physical filing of tax returns differs from one chartered accountant (CA) to another. The fees range anywhere between Rs300 and Rs2,500 for ITR1 and ITR2 depending on the complexity of return filing. So if you just have salaried income, e-filing really doesn't make sense.
If you don't have a digital signature, you can still file an e-return, but you have to submit a hard copy of the completed return to your tax office within 15 days after that.
Once the file is uploaded, the ITR-V form is generated and this is the proof of you having filed your return.Without a digital signature, you need to print out two ITR-V forms. One has to be submitted to the tax office and the receiving clerk or officer will stamp and return the other one for your records.
This is where the entire process of filing a return online weakens. If a visit to the income tax department is necessary, then one might as well fill up the entire form manually. Nevertheless, it does help in case of individuals who have bulky tax returns. "We save a lot of paper, while filing returns electronically. Earlier, for assessees whose TDS (tax deducted at source) was high, we had to take prints of at least 20-24 pages, sometimes even 100 pages. But with the e-filing, only two copies of a one-page return are enough," says Sumanlal Lodaya, chartered accountant who runs SS Lodaya & Associates. There are other issues also with e-filing. "Sometimes you have submit the returns three-four times for it to be accepted. In my area there is load-shedding for three-four working hours. So, though one can file returns post-workinghours as well, in CA offices the staff is not available later on to file returns online," says Salva.
If one is to follow the Income Tax Act in its true letter and spirit, e-filing is a 'defective' way of filing returns. The explanation accompanying Section 139(9) of the Income Tax Act clearly states that any return that is not accompanied by annexures, TDS certificates, etc, is 'defective.' "Using this loophole in the Act, the taxman can insist on physical documents for verification after you have e-filed your return," says a CA who was unwilling to be named. Given these reasons, it is best to physically file your income tax return rather than go the e-way.