e-payment of Direct Taxes

Remember , this is the time to pay your installment of Advance Tax.

Corporate and those assessee , liable to audit u/s 44AB will have to pay their all kind of Direct Taxes ONLINE.

What is e-payment of taxes?

Similar to booking tickets or making payments online.

􀂄All Direct Taxes e.g. Income Tax, Corporate tax, FBT, BCTT (TDS, Advance tax, self assessment tax) to be paid online using net banking facility.

􀂄Mandatory for all Companies and 44AB cases from 1stApril 2008 to pay taxes through e-payment facility using net banking account.

􀂄Credit/debit card facility is yet to be in operation

 

􀂄Taxpayer can make tax payment from any location without going to Bank branch.

􀂄Amount of tax debited to his bank account electronically and credited to GOI .

􀂄Log in to websiteof Income Tax Department: www.incometaxindia.gov.in

􀂄Choose the button‘pay taxes online’

 

How do I make e-payment?

 

 

How do I make online tax payment sitting at home/office?

 

1. Open a net-banking account with any of the banks listed above.

 

2. Go to website www.incometaxindia.gov.in , click on ‘pay taxes on-line’.

 

3. Fill in the required challan online. Help is available on screen as FAQ, downloads etc.

 

4. Make tax payment through net-banking account online.

 

5. A challan counterfoil will be available instantaneously on the screen with CIN (challan identification number). The Challan Identification Number (CIN) on this counterfoil should be quoted in Return of Income.

 

6. Print the counterfoil and also save it in the computer if required.

 

7. Check if your payment has reached the Income Tax Department at https://tin.tin.nsdl.com/oltas/servlet/QueryTaxpayer .

 

Which Banks offer e-payment facility?

1. Axis Bank

 

2. State Bank of India

 

3. Punjab National Bank

 

4. Indian Overseas Bank

 

5. Canara Bank

 

6. Indian Bank

 

7. Bank of India

 

8. Corporation Bank

 

9. State Bank of Bikaner & Jaipur

 

10. State Bank of Travancore

 

11. State Bank of Indore

 

12. Vijaya Bank

 

13. HDFC Bank

 

 

 

14. Oriental Bank of Commerce

 

15. State Bank of Patiala

 

16. Bank of Baroda

 

17. IDBI Bank

 

18. State Bank of Mysore

 

19. Bank of Maharashtra

 

20. State Bank of Hyderabad

 

21. State Bank of Saurashtra

 

22. Union Bank of India

 

23. Allahabad Bank

 

24. Dena Bank

 

25. Syndicate Bank

 

26. ICICI Bank

 

Note: Credit/Debit card payments are not yet available

Source : Income Tax and NSDL

 

CBDT has issued a new Form of report for claiming deduction u/s 80-IB(11C)

CBDT has issued a new Form of report for claiming deduction under sub-section (11C) of Section 80-IB of the Income-tax Act.

See details about the notification in http://www.incometaxindia.gov.in/archive/Notification22.10.2008_03112008.pdf

Tax Deduction on 40 percent of arrear only.

CBDT has clarified in the Press release issued on 30th September, 2008 that that TDS would be deducted u/s 192 only from the arrears of salary actually paid during FY 2008-09. On the balance, tax would be deducted during the financial year in which these pay arrears are actually paid.

View details at http://www.incometaxindia.gov.in/archive/CBDTPressRelease_30092008.pdf

Hurry, September 30th is the Due Date.

Due date for filing I-T returns for AY 2008-09 by Corporates and other taxpayers where accounts have to be audited under Sec 44AB is September 30th this year. Please do not wait till last moment to file your e-returns - 

E-File NOW! .

You may be well aware that it is mandatory for corporate and firms{With 44AB} to efile their returns. As discussed in earlier posts, they can upload their return with or without Digital Signature. 

It is also to remember that though Individuals with 44AB is not suppossed to efile their return of Income madatorily, They must have to epayment their tax of all kinds {advance Tax. Self Assesment Tax,Tax on Regular Assessment etc}.

Some frequently Asked Questions regarding Digital Signature is described below.

1. What is a Digital Signature?

   Answer: A digital signature authenticates electronic documents in a similar manner a handwritten signature authenticates printed documents. This signature cannot be forged and it asserts that a named person wrote or otherwise agreed to the document to which the signature is attached. The recipient of a digitally signed message can verify that the message originated from the person whose signature is attached to the document and that the message has not been altered either intentionally or accidentally since it was signed. Also, the signer of a document cannot later disown it by claiming that the signature was forged. In other words, digital signatures enable the "authentication" and “non-repudiation” of digital messages, assuring the recipient of a digital message of both the identity of the sender and the integrity of the message.

   A digital signature is issued by a Certification Authority (CA) and is signed with the CA's private key. A digital signature typically contains the: Owner's public key, the Owner's name, Expiration date of the public key, the Name of the issuer (the CA that issued the Digital ID), Serial number of the digital signature, and the digital signature of the issuer. Digital signatures deploy the Public Key Infrastructure (PKI) technology.

   If you file electronically using digital signature you do not have to submit a physical copy of the return. Even if you do not have a digital signature, you can still e-File the returns. However, you must also physically submit the printed copy of the filled up Form along with the copy of the Provisional Acknowledgement Number of your e-Return

   
   

2. How legal is a Digital signature?

   Answer: India is one of the select band of nations that has the Digital Signature Legislation in place. This Act grants digital signatures that have been issued by a licensed Certifying Authority in India the same status as a physical signature. Digital signatures deploy the Public Key Infrastructure (PKI) technology.

   
   

   
   

3. I don’t have a Digital Signature. Does this mean I cannot file online?

   Answer: In case you do not have a Digital Signature, you can still e-File the returns. However, you must also physically submit the printed copy of the filled up Form along with the copy of the Provisional Acknowledgement Number of your e-Return.

   
   

4. Where can I get a digital signature?

   Answer: The Information Technology Act, 2000 provides for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. Certification Agencies are appointed by the office of the Controller of Certification Agencies (CCA) under the provisions of IT Act, 2000. There are a total of seven Certification Agencies authorised by the CCA to issue the Digital Signature Certificates.

   Name of Certifying Agency	Website
   Tata Consultancy Services Ltd.	http://www.tcs-ca.tcs.co.in/
   National Informatics Centre	http://www.nic.in/
   Institute for Development & Research in Banking Technology (IDRBT)	idrbtca.org.in
   MTNL	http://www.mtnltrustline.com/
   Customs & Central Excise	icert.gov.in
   (n)Code Solutions Ltd., (A division of Gujarat Narmada Valley Fertilisers Company Ltd.)	http://www.gnvfc.com/
   Safescrypt	http://www.safescrypt.com/

   
   

5. Do I need a fresh digital signature in case I already have one?

   Answer: A person/company who already has the specified Digital Signature for any other application can use the same for filings for the Income tax return and is not required to obtain a fresh Digital Signature.

   
   

6. How much does a digital signature cost?

   Answer: The Digital Signature certificates are typically issued with one year validity and two year validity. It includes the cost of medium (a UBS token which is a one time cost), the cost of issuance of Digital Signature and the renewal cost after the period of validity. The issuance costs in respect of each Certification Agency vary and are market driven.

   
   

7. UPLOADING WITH DIGITAL SIGNATURE CERTIFICATES: there is no way of affixing the certificate onto the form

   Answer: The website allows the assessee to use digital signature as an option. Therefore it is not possible to embed the digital signature feature in the software utility /form. However, the assessee can browse and attach the digital signature at the time of submission of the e-return at his option.

   
   

8. The Web site accepts Digital signature certificates in the formats: .pfx/ .p12. Other formats like .cer are not being accepted. Thus Persons who use USB tokens for securing their signature certificates are unable to use them for E-Filing.

   Answer: Digital Signature Certificates in USB tokens are also accepted.

   
   

9. It is not clear what class of Digital signature certificates should be used: Class 1/2/3

   Answer: Digital Signature certificate should be of Class 2 or 3 only. It should also be ensured that the Digital certificate should be obtained only from among Certifying Authorities in India.

   
   

10. It is also not clear as to whose Digital signature certificate should be used: Director (as in the case of MCA) / Company (as in the case of DGFT).

    Answer: In case the electronic return is being signed digitally using a digital certificate, then the digital certificate should be that of the Authorized Signatory in accordance with the provisions of Section 140 of the IT Act. Therefore, for company returns, the digital certificate should be that of the Managing Director or the Director of the company.

    Source : Official Income Tax Site.

    
    

Income Tax Dept Exam Postponed

Income Tax Departmental Examination for promotion in the post of ITO and Inspector which was earlier scheduled to commence from tomorrow, the 25th September 2008 acrooss the countrt, has been postponed for indefinite period. This communication arrived from New Delhi at the dying moments of today's office hour. As it will be very difficult to communicate to the examinees in such a short notice, we are publishing this news in this blog to inform all concerned. The ITOship exam was scheduled to start at 10.30A.M tomorrow and the Inspectorship at 2.30P.M.

The exam has been postponed for indefinite period and the new dates will be informed later. It is most likely that the revised schedule will be after Deepavabali.