CGHS Contribution is deductible u/s 80D of the I.T. Act

"...the whole of the amount paid to effect in force an insurance of the health of the assessee or his family or any contribution made to the Central Govt. Health Scheme (as inserted in the Finance Act 2010., w.e.f 01.04.2010) as does not exceed in the aggregate 15000 rupees..."

ITOs may issue refunds even without TDS matching - CBDT relaxed norm.

"................In order to speed up refunds, TDS claims in all tax returns (ITR-1 to ITR-6) will be accepted without verification if the difference between the amount claimed in the return and the 
amount reflected in the TDS return (AS-26 statement) does not exceed one lakh rupees. This will enable the Income Tax department clear nearly 95 percent refunds without verifying each 
TDS claim. Cases with zero-matching, invalid TAN and difference exceeding Rs. 1 lakh will, however, be cleared only after due verification. This precaution is necessary to avoid refund frauds. 
Earlier, the Chairman CBDT had directed all Chief Commissioners to upload necessary data so that the refunds can be issued expeditiously. It will be for the first time that most income tax refunds of the current assessment year will be dispatched to the taxpayers within the current financial year itself. "
Source : CBDT Press Release issued on 10.02.2011.

A BRIEF NOTE ON VIDEO CONFERENCE OF THE CHAIRMAN, CBDT CONDUCTED ON 02 FEBRUARY 2011

NEW RECRUITMENT

 

214 posts of INCOME TAX INSPECTORS and 1989 TAX ASSISTANTS were identified to be filled up immediately by direct recruitment.

 

DPC

 

In the absence of any further communications from any part of the country, 92 vacancies of CITs (48 for FY 2010-11 and 44 for FY 2011-12) and 50 vacancies of CCITs were determined to be filled up from the forthcoming DPCs to be completed by 31.03.2011. 203 vacancies of ACITs (104 for 2010-11 and 89 for 2011-12) will also be covered in the DPC for promotion from the post of ITOs.

Deficient APARs are required to be furnished immediately to speed up the process.

 

INCOME LIMITS FOR ASSESSMENT

 

With effect from 01.04.2011, Income tax Officers will have the jurisdiction to assess the returns with income not exceeding 15 lakhs in non-corporate cases (20 lakhs in metros) and 20 lakhs in corporate cases (30 lakhs in metros).

 

APPEAL LIMITS

 

Instructions issued raising monitory limits to file appeals in ITAT (3 lakhs), High Court (10 lakhs) and the Supreme Court (25 lakhs).

As the apex court is not entertaining belated appeals, it is directed that there should not be delay of even one day in processing appeal cases, failing which responsibility would be fixed on the respective CCITs and CITs  individually.

 

SETTLEMENT COMMISSION

 

New benches of settlement commission were constituted - two in Delhi and one in Mumbai

 

APAR

 

APAR submitted in old format for FY 2009-10 will be treated as legal and valid.

 

VIGILANCE MATTER

 

Directions were issued to close proceedings on anonymous petitions by 31.01.2012. If enquiries are required to be initiated on any anonymous petition, it should be done only with the prior approval of the Mem(P) and Chairman.

Instructions were also given to dispose of all pending cases in the case of retired officers latest by 31.01.2012.

 

OFFICE SPACE

 

Following the direction of the Hon’ble FM on this matter, ample office space and good office surroundings are  to be provided all over the country. Any requirement in this matter can be made good by the concerned CCIT(CCA)s by hiring suitable spaces wherever necessary.

 

REFUNDS

 

Pendency on refunds will to be reduced to NIL. Unless specific directions were received from the CBDT, no refunds should be withheld.

 

STENOS/TYPISTS

 

Considering the vacant posts, DEOs would be deployed on contract/hire basis. CCITs were directed to report the requirement of their charges.

 

COMPILATION OF CIRCULARS

 

A compendium of all circulars and instructions since 1961 was released in the conference. The CD was described as equipped with highly compatible search engines and the compendium can be updated through internet.  It was assured that copies of the CD would reach all officers up to the level of ITOs within 15 days.

 

COLLECTION OF DEMANDS

 

In those areas where the national target was not achieved, a strategy was so developed as each Assessing Officer should pursue and collect pending demands in 25 top cases each in arrear and current demand cases.

 

DRAFT PARAS

 

All pending reports of draft paras should be sent VERY URGENTLY so as to settle the DPs at Board’s level without delay.

 

CADRE RESTRUCTURING

 

 

Cadre restructuring has been approved by the Dept. of Expenditure and following additional vacancies will be created:

204 - CIT

312 - JCIT

243 - DCIT

357 - ACIT

Budget 2011 : Tax - relief investment limit may be hiked

The investment limit for the purpose of tax deduction is likely to be raised to Rs 1.4-1.5 lakh in Budget 2011.

At present, individuals can invest up to Rs 1.2 lakh in tax-saving instruments, including Rs 20,000 in infrastructure bonds, and the limit may be raised to encourage long-term savings.

In the works is a proposal to raise the tax-saving ceiling from Rs 1 lakh as well as increase the limit for infrastructure investment.

Top officials said the government would encourage people to invest in infrastructure bonds and pension and insurance products as these generate long-term savings and can be used to fund the country’s growing need for highways, ports, airports and power plants.

Investment in pension funds is covered by the Rs 1-lakh tax exemption under Section 80C of the income tax act — this could be raised by Rs 10,000-20,000.

Specific infrastructure bonds are eligible for tax deduction of up to Rs 20,000 under Section 80FF over and above the Rs 1-lakh limit, and this could be raised to Rs 30,000. If the tax-saving sops are tweaked, a male taxpayer below 65 years of age and with an income of Rs 3-3.1 lakh will not have to pay any tax even if the threshold is kept at the existing Rs 1.6 lakh.

The finance ministry has earlier clarified that the direct tax code (DTC), which will come into effect from 2012-13, will continue with the EEE, or exempt-exempt-exempt, provisions for long-term tax saving schemes.

It will ensure exemption at all stages for money parked with the General Provident Fund and the Public Provident Fund. Similar reliefs will be available for pension schemes run by the regulator and pure life insurance products.

Retirement benefits, including money received under the voluntary retirement schemes, will also be tax exempt, subject to limits to be set by the government.

The DTC, in an earlier version, had sought to replace the EEE provisions with EET, under which withdrawals on maturity would be taxed.

Officials said a committee headed by Deepak Parekh had floated a proposal for a Rs 50,000-crore infrastructure debt fund. Finance minister Pranab Mukherjee is believed to be weighing various options to create the fund.

Officials indicated that the structure of infrastructure bonds might also be changed. Infrastructure bonds, which carry an interest of 7-8 per cent, were supposed to be attractive because of the tax exemptions. However, high inflation and compulsory lock-in periods have taken the sheen off them.

Another committee headed by former RBI deputy governor Rakesh Mohan is looking at ways to mobilise more retail savings through infrastructure non-banking financial corporations. The committee’s report, however, may not be incorporated in the budget and is likely to be taken up later.

Source : The Telegraph.

Income Tax Cadre Review/Restructure proposal cleared by expenditure, awaiting personnel clearance.

It has been reliably understood that the cadre restructuring proposal has now been submitted to the Department of Personnel after obtaining approval of the Department of Expenditure and the Hon’ble Finance Minister with certain modifications.
Details are awaited.
Source : ITEF