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.

Due date for filing I.T. return is 30th September this year.

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! .

For a smooth E-filing experience please observe the following. 

1.  Completely prepare your return and generate xml and keep ready. 

2. Login only when you are ready to upload your return.  

3. At the time of login, do not, repeatedly click on the 'Login' button. Please wait till your first login request is accepted.  

4. After login please click on submit your return and upload the xml file.  

5. Please download your ITR-V from My Account-> My Return link or wait for ITR-V to be received via email.  

6. Please immediately logout and close your browser. This will enable other users to login and submit their returns.

{As per the official website for information purpose}

Forgot your password for efiling ?

Click on ‘log in’ in the homepage of incometaxindiaefiling.gov.in.

Go to ‘Forgot Password’ – Put your PAN – The system will verify whether you have efiled earlier with this PAN or not.

If you have efiled earlier, the system will ask for the efiling acknowledgement No. for any year. This is a mandatory field. You will not be allowed to reset the password without it. This is a new functionality introduced this year. This is designed to prevent unauthorized attempt for resetting of password and by this way assessee is protected.

If you have not efiled any return yet but forgot the password after registering, the process is not changed for resetting the password.

 

Income Tax Officers are getting Laptop.

It may not be very good news for the tax payers as a portion of their tax paid on their hard earned money is being drained as incentive to the IT officers. The Central Board of Direct Taxes has decided to award Laptop to each and every Officers starting from ITO and above. They said this money will be spent to improve the infrastructure of the department.

 

As per CBDT instruction, Rs 196 Crores{Approx} has been awarded as excess collection over target fixed in the F.Y. 2006-07. This is only one percent of the money in excess of the target achieved by the department.

 

You may rightly think, “Are the officers only responsible for the huge collection?”

CBDT was kind enough to offer a very small portion to the greater chunk of the lower employees. They offered a reimbursement of mobile bill of Rs 500 per month for 3 years for Group C staff and a handset and free life time connection to the Group D employees. But the Service Associations bluntly refused the proposal without being able to suggest any better alternative. In the meanwhile, an order to allot 15 handset per Range has come but not implemented from pressure of the Unions as only a few portion of employee may be benefited.   Since then the matter of incentive relating to Group C and D employees is jeopardized.

 

There is a burning question. If a Chief Commissioner and an Income Tax Officer has equal contribution achieving the excess collection and share equal incentive, why the same analogy be drawn between an ITO and a Gr C or Gr D employee? As per our day to day experience we can see that the maximum of workload is being carried by the ground line staff. Is it not the responsibility of the authority to see that their morals are not down?

 

If anything is to be given as incentive to boost up the morals, the amount should be equal. Let us see the role of the Service Associations in this matter. But they should get the message that anger is mounting between the lower level employees. 

Relief U/S 89(1) for Arrears of Salary

RELIEF U/S 89(1)

In case of relief when salary has been received in arrears or in advance:

Method of calculating the relief:

1. Calculate the tax payable on the total income, including the additional salary of the relevant previous year in which the same is received. (receipt basis).
2. Calculate the tax payable on the total income, excluding the additional salary of the relevant previous year in which the same is received. (receipt basis).
3. Find out the difference in tax between (1) and (2) as calculated above.
4. Compute the tax on the total income after excluding the additional salary in the previous year to which such salary relates. (accrual basis).
5. Compute the tax on the total income after including the additional salary in the previous year to which such salary relates. (accrual basis).
6. Find out the difference in tax between (4) and (5) as calculated above.
7. The excess of tax computed at (3) over the tax computed at (6) is the amount of relief admissible u/s 89(1). No relief is however admissible if the tax computed at (3) is less than the tax computed at (6). In such a case the assessee – employee need not apply for relief.