All Companies to File I-T Returns Electronically with Digital Signature

The Central Board of Direct Taxes (CBDT) has amended the Rules relating to electronic filing of income tax returns vide Notification No.49/2010 dated 9th July 2010. The amended Rules will apply with effect from the date of notification in the official gazette.

As per the amended Rules, it is now mandatory for all companies to file income tax return electronically in Form No.ITR-6 with digital signature. Earlier, companies could file their electronic returns with or without digital signature. 

Further, now all individuals and Hindu Undivided Families (HUFs), who are required to get their accounts audited under section 44AB of the Income Tax Act 1961, are also required to file their income tax return in Form No.ITR-4 electronically with or without digital signature. Earlier, this condition was applicable only to companies and partnership firms. 

Accounts are required to be audited under the income tax law, if turnover or gross receipts from business exceeds Rs.40 lakh (Rs.60 lakh from assessment year 2011-12 onwards), or if turnover or gross receipts from profession exceeds Rs.10 lakh (Rs.15 lakh from assessment year 2011-12 onwards). 


Source : PIB Press Release.
View the press release

Additional Income Tax relief upto Rs 20,000/- in investment in Infrastructure bond.

The Central Government have specified bonds to be issued by (i) Industrial Finance Corporation of India; (ii) Life Insurance Corporation of India; (iii) Infrastructure Development Finance Company Limited; and (iv) a Non-Banking Finance Company classified as an infrastructure finance company by the Reserve Bank of India; as “Long-term Infrastructure Bond” for the purpose of section 80CCF of the Income Tax Act, 1961. 

Investment in these bonds up to rupees twenty thousand will be eligible for deduction from the total income of the assessee. The deduction will be in addition to the deduction of rupees one lakh allowed under sections 80C, 80CCC and 80CCD of the Act. 

The tenure of the Bonds shall be a minimum of ten years with a lock-in period of five years for an investor. It will be mandatory for the subscriber to furnish permanent account number to the issuer for investment in the bonds. 

Meeting with Chairman CBDT could not provide result, Taxmen are on agitation, strike. Revised Time Table for Dept. Exam 2010.

View Revised Exam Time Table


Circular No.29                                                                                    Dated: 30^th June, 2010

Dear Comrade,

            The representatives of the two Federations met the Chairman and other authorities of the Board on 28.06.2010. The Charter of demands in pursuance of which the Central JCA has declared to organize a STRIKE programme on15.07.2010 was discussed. The outcome of the discussion in brief is presented in the Central JCAs communiction in this regard. It could be seen that no tangible outcome has come about from the said meeting. The Central JCA met thereafter and decided to go ahead with the programme of action and formally served the Strike Notice on 29.06.2010. The Strike action is to be followed up with intensified agitations in the form of Non Cooperation with regard to Search and Seizure, Survey (including TDS enquiry, verification etc.) . We request you to kindly take all steps required for ensuring cent percent participations of our members in the strike action.

            With best wishes,

Yours fraternally,

(Ashok B Salunkhe)

Secretary General.

OUTCOME OF THE MEETING WITH CHAIRMAN, CBDT ON 28.06.2010   ON JCA'S CHARTER OF DEMANDS

1. Stop outsourcing. CPC must function strictly as per Agreement reached with JCA.

a.  The Board indicated to honour the agreement. However, it said that the problem emanating from the insufficiency of manpower especially in the cadre of Tax Assistants persists and wanted the JCA to address to the said issue.   No consensus could be reached on the issue except that the matter could be further discussed..

b. As regards caretaking staff, only the usual assurance was given that necessary instructions will be issued to the CCsIT to recruit the people locally  to fill up the  meagre vacancies. It was the contention of the Board that filling up of the existing vacancies in the erstwhile cadre of Group D would not resolve the issue in as much as the manpower requirement to carry out the functions is huge.  The Board was not in agreement with the proposal mooted by the Federations that till the Government sanctions necessary manpower, the local employment exchanges could be approached to provide persons on daily rated basis.

2. a. Reimburse Mobile phone charges to all employees in  the department.

What was being told to us during the last one year was repeated that the Board has approved the scheme and the file has gone to the Department of Expenditure and it is hoped that the approval of the Govt. will be coming soon.

 b. Sanction Laptops to all Gaz. Officers including newly promoted ITOs, AO,PS / Sr. PS on non-returnable basis.

LAPTOPS upto ITO was sanctioned with the approval of then FM. Now if it is to be given to AO & PS, Board was of the opinion that FM's approval was required and a suitable proposal with justification will be sent.

c. Provide Desktop computers to all Group C employees.

It was stated that necessary steps will be taken to get sanction for procuring required computers to be provided to all sections in the Department.

3. Publish Civil List without any further loss of time, on the lines it was issued till 2006. Publish seniority list of Group 'B' 'C' & 'D' employees as per Board's instructions on an annual basis.

Board was of the opinion that the matter was sub-judice due to some OAs filed by Direct Recruits in CAT and in which some promotees have also got impleaded. The matter will be studied and a decision will be taken.

As regards, Group C & D, necessary instruction will be issued by Board to CCIT(CCA) to publish seniority list as on 01^st January, every year.

4. Transfer DCIT / ACIT (who have completed 2 years cooling period and with spouse / medical / compassionate grounds, etc.).

Board stated that this will be possible only at the time of promotion  from ITO to ACIT and consequent transfer.

5. Fill up all vacant posts in the Department.

Board is trying to decentralize the recruitment process for IT Dept. In this direction a committee has already been constituted.

6. Conduct DPC for ACIT for RY 2009-10 immediately and Start the work for RY2010-11, DPC for DCIT as on 01/01/2010 and DPC for Jt. CIT for IRS of 2000 & 2001 batch.

The Official side stated the oft-repeated statement that the date for  DPC for ACIT will be obtained from the UPSC during the month of July.  No firm commitment of the date and effecting promotion was brought in the meeting. As regards, DCIT to JCIT – UPSC has rejected Board's proposal for Ad-hoc promotion. The balance ACRs which are below bench-mark will be corrected by the end of July, with active follow-up from the Board and then a proposal for regular DPC will be sent to UPSC, who have stated to give an early date.

As for ACIT to DCIT as on 01.01.2010 – There is a deficiency of around 90 ACRs , which again has been put-up in the official website. 

7. Resolve Pay Anomalies arising out of 6^th CPC & Grant Grade pay of Rs.4,800/- to Private Secretaries and Administrative officers.

8. After 4 Years of service ITO, AO, PS & Sr. PS must be placed in PB-3 with Grade Pay of Rs. 5400.

a. Anomaly between direct recruit & promotee in various grades of staff, a letter has already been sent to Dept. of Expenditure as required by the ITEF.

b. As regards GP of 4800 to AO & PS & 5400 after 4 years in PB-3 to ITO/AO/PS & Sr.PS, a proposal with proper justification will be sent to Dept. of Expenditure.

9. Implement the cadre composition as suggested by ITEF based on 6^thCPC report.

The Staff Side brought to the notice of the chairman that the issue was discussed with the DG(HRD) more than two times but no progress has been registered .  The DG (HRD) promised to finalise the matter shortly and place the proposal before the board. Copy of the proposal so placed before the Board  would be given to the ITEFand its views taken into consideration before the issue is finalised.

10. Honour the agreement with JCA on the Departmental Exams.

No finality has reached on this subject.  The response of the Board is that further discussion is necessary on this issue between ITEF and DG (admn).

11. Dispose of all vigilance cases pending beyond one year.

Board stated that of late, no vigilance cases are being initiated in the last 6 months of one's career, except in exceptional cases, where CBI or CVC has given any direction/advice. Instruction for expediting the pending cases will be issued by Board.

12. Expedite the proposals submitted by Cadre Review Committee in toto.

The JCA made it clear that though the proposal by the Committee constituted for this purpose was submitted to the Board  way back in July 2009, the formal proposal to the Govt. has not been submitted by the Board.  The Stand of the Board is that another committee to draft the final proposal has been formed and the work is in progress.

From the above it will be seen that there is no preparedness on the part of CBDT to redress the genuine & just demands of promotee officers and staff of I.T. Dept.

Therefore, JCA is left with no alternative but to continue with our agitational programme including one day's token strike on 15/07/2010 for which a strike notice has already been served on the CBDT. Further, intensification of agitation in the form of Non-cooperation with regard to Search & Survey (including TDS verification/education etc will commence  from 20/07/2010.

Source : ITEF

eFilers can now view own TDS Credit.

New facility added in "My Account" for registered E-filers to View the Tax Credit Statement (Form 26AS) to verify if the tax payments made by you or TDS deducted from salary or interest etc are correctly reported to the Department.


View for details

Dos and Dont's for printing and submitting of ITR-Vs to

ITD-CPC Bangalore

1. Please use Ink Jet /Laser printer to print the ITR-V Form.
2. Avoid printing on Dot Matrix printer.
3. The ITR-V Form should be printed only in black ink.
4. Do not use any other ink option to print ITR V.
5. Ensure that print out is clear and not light print/faded copy.
6. Please do not print any water marks on ITR-V. The only permissible watermark is that of "Income tax Department" which is printed automatically on each ITR-V.
7. The document that is mailed to CPC should be signed in original in BLUE INK.
8. Photocopy of signatures will not be accepted.
9. The signatures or any handwritten text should not be written on Bar code.
10. Bar code and numbers below barcode should be clearly visible.
11. Only A4 size white paper should be used.
12. Avoid typing anything at the back of the paper.
13. Perforated paper or any other size paper should be avoided.
14. Do not use stapler on ITR V acknowledgement.
15. In case you are submitting original and revised returns, do not print them back to back. Use two separate papers for printing ITR-Vs separately.
16. More than one ITR-V can be sent in the same envelope.
17. Please do not submit any annexures, covering letter, pre stamped envelopes etc. along with ITR-V.
18. The ITR-V form is required to be sent to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100, by ordinary post or speedpost.
19. ITR-Vs that do not conform to the above specifications may get rejected or acknowledgement of receipt may get delayed.

By Courtesy : Income Tax Dept.

New Tax Code : Modified version released : Savings safe in revisions that promise breathers, Home Loan interest remains exempted.

Salary-earners worried about retirement can let out an “EEE” in glee.

The Centre has dropped a proposal to tax pension savings while withdrawing the money on maturity.

This means it will continue with the policy of EEE (exempt, exempt, exempt) at all three stages of savings and will not opt for a proposed EET (exempt, exempt and tax at withdrawal).

The modification was announced in revisions to a direct tax code the Centre proposes to implement from next year. The revised code has promised several other sops to the middle class.

The tax code, which will be introduced in Parliament in the coming monsoon session, is expected to simplify tax rules, raise tax slabs and lift the ceiling for tax-free savings to Rs 3 lakh from Rs 1.6 lakh now. If all these promises are fulfilled, the total outgo for the salaried class will go down.

The plan to tax the savings at the last stage had sent shivers down the spine of those who were saving for post-retirement. The modifications suggest that the government did pay attention to the sense of disquiet.

Revenue secretary Sunil Mitra said: “We prepared the revised discussion paper on the basis of some 1,600 comments and suggestions we received.”

A realisation by tax collectors that EET would mean huge increase in paperwork also played a part in its burial.

The revised paper, too, will be open to changes based on suggestions which people can send over the next 15 days, the secretary said.

The comment box can be accessed on the Internet on the site finmin.nic.in. If a user clicks on “new discussion paper related to direct taxes code” in the update box, the comment box can be reached.

Source : The Telegraph.


View the proposed Revised Tax Code