NEWS, INFORMATIONS..

Processing of returns of A.Y. 2008-09 - Steps to clear the backlog
Instruction No. 1/2010, dated 25-2-2010

The issue of processing of I.T. returns for the A.Y. 2008-09 and giving credit for TDS has recently been considered by the Board and following decisions have been taken, in order to clear the backlog of returns pending for processing:

i) In all the returns filed in ITR-1 and ITR-2 for the A. Y. 2008-09, where the aggregate TDS claim does not exceed Rs four lakh and where the refund computed does not exceed Rs.25,000; the TDS claim of the tax payer concerned should be accepted at the time of processing of return.

ii) In all the returns filed in forms other than ITR-1 and ITR-2 for the A. Y. 2008-09, where the aggregate TDS claim does not exceed Rs four lakh and the refund computed does not exceed Rs.25,000, and there is 70% matching of TDS amount claimed, the TDS claim of the tax payer concerned should be accepted at the time of processing of return.

iii) In all remaining cases, TDS credit shall be given after due verification.

The Institute of Chartered Accountants of India (ICAI)

Creating a record in its placement history,

AHMEDABAD: Creating a record in its placement history, the Institute of Chartered Accountants of India (ICAI) has placed three of its candidates at  a record salary of close to Rs 70 lakh with Singapore-based Olam International. This is the highest ever salary offered to fresh CAs recruited from the ICAI campus, the apex body that conducts the CA examination and places the successful candidates every year. Earlier, a record salary of Rs 38.25 lakh was offered in 2007.
 
The three candidates who have been offered the record salary, almost double the earlier high, were picked by the agriculture supply chain major from ICAI's Chennai campus. Olam plans to hire around 8 candidates from ICAI.

  
ICAI started its first phase of placements through five (all metros) out of 15 campuses on March 4. The first day itself saw 320 candidates being picked up. Companies which hired successful CAs on the first day include IOC, ITC, Tolaram, Vedant, S R Batliboy, Yes Bank, GE Capital, REC, L&T, Axis Bank, Morgan Stanley, HCL Technology and Delloite.

 
"We are very happy with the offers we have seen on very first day of our campus recruitment. It suggests that now we are out of the global recession and recruiters are ready to offer right packages to right candidates," said Subodh Agrawal, chairmen of the Committee for Members in Industry, ICAI, in a reaction to the record offer. "It is a 100% rise from our earlier best," he added. Explaining the hiring sentiment, Mr Agarwal said: "Now with the upturn, good candidates keen to work within the country. Therefore, companies need to pay a premium to hire them for global positions."

 
Not just global firms but domestic giants too have aggressively picked up CAs on the first day. Leading private sector bank ICICI emerged as the biggest employer by hiring 100 candidates.

 
"ICICI Bank has been one of the biggest recruiters. However, it did not hire with the same fervour in the last two-three years. This time, they are back," said an official in the ICAI.

 
While Mumbai campus saw highest placements with 148 CAs getting offers, Delhi saw 65 offers. Kolkata, Chennai and Bangalore campuses saw 42, 22, 44 offers respectively.

 
While the salary offers in Mumbai were in the Rs 6.25-14 lakh, Delhi saw candidates picked up in the Rs 6-11 lakh salary range. The range was higher in Kolkata where offers were made between Rs 6 lakh and Rs 22. Tolaram, a Singapore-based diversified group offered the highest package of Rs 22 lakh in Kolkata.

  
When contacted by ET, Olam International confirmed the Rs 70-lakh offer. " Michael Joseph who handles global recruitments at the company said: ""We are operating in a recession-free industry. So, there are really no limits now," he said.

Olam which is growing at a 25% rate, is also one of the top recruiters at the IIMs. In the ongoing placement season at the IIMs, the company picked up 12 people from the IIM-A.   

Bank need to deduct tds on accrual of interest not on mere Provisioning of the same

Mar 9, 2010 Income Tax

No income tax at source will be deducted if banks have only made a provision for interest on fixed deposits and not actually paid it to the depositor, the Finance Ministry has clarified. Until now, tax was supposed to be deducted by banks even if only provisioning was made for interest payment.

However, this was creating problems for banks using Core-Branch Banking Solutions (CBS), which enables customers to access their accounts from any branch. The Indian Banks' Association in a representation to the Income Tax department had said that for banks using the CBS software, interest payable on fixed deposits is calculated generally on a daily or a monthly basis but is parked in the provisioning account for monitoring only.

The interest is actually credited to the depositor's account either at the end of the financial year or at periodic intervals or on maturity of the deposits. The matter was considered by the Central Board of Direct Taxes to plug this loophole.

According to a Finance Ministry official, CBDT clarified that since no credit is given to the depositors while calculating interest on fixed deposits on daily or monthly basis in the CBS software used by banks, tax need not be deducted at source on such provisioning of interest.

"In such cases, tax shall be deducted at source on accrual of interest," the board clarified, according to a source. Income tax is charged at the rate of 10 per cent on interest income of more than Rs 10,000 in a year.

Annual Tax Statement (Form 26AS)

Annual Tax Statement (Form 26AS) is a statement, which is created financial year wise on the basis of TDS/TCS returns filed by the Deductor/Collector and tax deposited in the bank.

Form 26AS includes details of:

a) All tax deducted at source (TDS) covered in Part A;

b) All tax collected at source (TCS) covered in Part B;  and

c) All advance tax/self assessment tax/regular assessment tax etc., deposited in the bank by the taxpayers (PAN holders) covered in Part C.

d) Details of paid refund received during the A.Y. is covered in Part D.

 Kindly note that in PART A/B (Details of Tax deducted/collected at source), the "Status of Booking (P/F/U)" indicates the following:-

 Provisional (P) - Only for TDS/TCS affected by Government deductors. Provisional tax credit is effected on the basis of TDS/TCS returns filed only. On verification of the payment details by the Pay & Accounts officer (PAO), status will change to Final (F).

 Unmatched (U) -  Deductors have not deposited the taxes or have furnished incorrect particulars of tax payment. Final credit will be reflected only when the payment details in the bank match with the details of deposit in the TDS/TCS return.

Final (F) - In case of non-Government deductors, payment details of TDS/TCS deposited in bank by the deductor have matched with the payment details mentioned in the TDS/TCS return filed by the deductor.

In case of Government deductors, details of TDS/TCS booked in Government account have been verified by the Pay and Accounts Officer (PAO).

 In PART C, Details of Tax Paid (Other than TDS or TCS) related to  Securities Transaction Tax and Banking Cash Transaction Tax are not displayed.

 Form 26AS will help you to verify the credits for taxes deducted from the income received and the advance tax/ self assessment tax deposited by you at the bank.

 Possible reasons for mismatch/missing entry in Part A/B (Details of TDS or TCS) are as follow:-

Deductor/collector has not filed quarterly TDS/TCS return.

Deductor /collector has not quoted or has wrongly quoted your PAN in the TDS/TCS return.

You have not provided PAN or have provided wrong PAN to the deductor/collector.

The TDS/TCS return filed by the deductor/collector is rejected in the system.

In case of entries with Status of Booking "U" (Unmatched)

Deductor has wrongly quoted the challan details in the return against which your TDS/TCS was deposited.

Deductor has provided correct challan details in TDS/TCS return but bank has made error while digitising challan details.

Possible reasons for mismatch/missing entry in "Part C" Details of tax paid (other than TDS or TCS) are as follow:-

The Bank

has digitized incorrect PAN in  Challan.

has not uploaded the digitized challan.

has made error in digitising amount/major head while digitizing the Challan data

has made error in digitising CIN details in the Challan data

You

have mentioned wrong A.Y. in the challan which will result in updation of Form 26AS for wrong A.Y.

have quoted incorrect PAN in the tax payment challan

 CIN consists of the BSR code of the bank branch where you deposited the tax, date on which you deposited tax and the challan serial number which have been stamped on the counter foil of the challan given to you.

Note :-

You can verify following at TIN web-site (http://www.tin-nsdl.com/)

Status of the Challan through which tax deposited by you in the bank by clicking on link 'Challan Status Enquiry'.

The Status of return uploaded by deductor/collector by clicking on link "Quarterly Statement Status".

 BY CA. RAJU SHAH