The Cadre Restructuring Proposal submitted by the Department has been approved by the Department of Expenditure and by the Finance Minister. This has now been forwarded to the Department of Personnel for their consent. According to sources the proposal may be cleared by the DOPT in the month of April. The next step is to get the approval of the Union Cabinet. The entire process, according to the information from the Directorate of Human Resource Development, CBDT, is likely to be over by May-June, 2011.
Friday, March 4, 2011
Tuesday, March 1, 2011
Income Tax to be more electronically equipped, Kolkata to get Central Processing Centre.
Various tax initiatives have been taken in the Union Budget 2011-12 for efficient tax administration. Presenting the Budget in the Lok Sabha, Finance Minister Pranab Mukherjee highlighted the initiatives including e-filing and e-payment of taxes, adoption of ‘Sevottam’ concept by CBEC and CBDT, web based facility for tax payers track the resolution of refunds and credit for pre-paid taxes and augmentation of processing capacity.
The on-line preparation and e-filing of income tax returns, e-payment of taxes through 32 agency banks, ECS facility for electronic clearing of refunds directly in taxpayers’ bank accounts and electronic filing of TDS returns are now available throughout the country.
The ‘Sevottam’ concept has been adopted by both Boards i.e. CBDT and CBEC. The pilot projects of Aaykar Seva Kendras (ASKs) under CBDT have come of age. CBDT will commission eight more such centres this year. In 2011-12, another fifty ASKs will be set up across the country. CBEC has also launched a similar initiative and four of their pilot projects have been commissioned.
The Centralized Processing Centre (CPC) at Bengaluru has increased its daily processing capacity from 20,000 to 1.5 lakh returns in 2010-11. Two more CPCs will become operational in Manesar and Pune by May 2011 and a fourth CPC will come up in Kolkata in 2011-12.
The electronic filing of tax deduction at source (TDS) statements has stabilized and soon there will be provision for salary tax payers to not file income tax returns as their tax liability is being discharged by their employer through TDS.
As a measure to increase the level of service CBDT will provide a web-based facility to enable tax payers to report and track the resolution of the refunds and credit for pre-paid taxes.
Source : PIB Press Release
The on-line preparation and e-filing of income tax returns, e-payment of taxes through 32 agency banks, ECS facility for electronic clearing of refunds directly in taxpayers’ bank accounts and electronic filing of TDS returns are now available throughout the country.
The ‘Sevottam’ concept has been adopted by both Boards i.e. CBDT and CBEC. The pilot projects of Aaykar Seva Kendras (ASKs) under CBDT have come of age. CBDT will commission eight more such centres this year. In 2011-12, another fifty ASKs will be set up across the country. CBEC has also launched a similar initiative and four of their pilot projects have been commissioned.
The Centralized Processing Centre (CPC) at Bengaluru has increased its daily processing capacity from 20,000 to 1.5 lakh returns in 2010-11. Two more CPCs will become operational in Manesar and Pune by May 2011 and a fourth CPC will come up in Kolkata in 2011-12.
The electronic filing of tax deduction at source (TDS) statements has stabilized and soon there will be provision for salary tax payers to not file income tax returns as their tax liability is being discharged by their employer through TDS.
As a measure to increase the level of service CBDT will provide a web-based facility to enable tax payers to report and track the resolution of the refunds and credit for pre-paid taxes.
Source : PIB Press Release
Monday, February 28, 2011
Income Tax Rate for the F.Y. 2011-12
The Income Tax Rates applicable for the financial year 2011-12 (Assessment year 2012-13) have been revised. The following is the New Income Tax structure for the year 2011-12.In case of individual (other than II and III below) and HUF
Income LevelIncome Tax Ratei.Where the total income does not exceed Rs.1,80,000/-.NILii.Where the total income exceeds Rs.1,80,000/- but does not exceed Rs.5,00,000/-.10% of amount by whichthe total income exceedsRs. 1,80,000/-iii.Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.Rs. 32,000/- + 20%of the amount bywhich the totalincome exceeds Rs.5,00,000/-.iv.Where the total income exceeds Rs.8,00,000/-.Rs. 92,000/- + 30%of the amount bywhich the totalincome exceeds Rs.8,00,000/-.II. In case of individual being a woman resident inthe age of 60 years at any time during the previous year:-
Income LevelIncome Tax Ratei.Where the total income does not exceed Rs.1,90,000/-.NILii.Where total income exceeds Rs.1,90,000/- but does not exceed Rs.5,00,000/-.10% of the amount by which the total income exceeds Rs.1,90,000/-.iii.Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.Rs. 31,000- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.iv.Where the total income exceeds Rs.8,00,000/-Rs.91,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.III. In case of an individual resident who is of the age of 60 yearsor more at any time during the previous year:-
Income LevelIncome Tax Ratei.Where the total income does not exceed Rs.2,50,000/-.NILii.Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/-10% of the amount by which the total income exceeds Rs.2,50,000/-.iii.Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-Rs.25,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.iv.Where the total income exceeds Rs.8,00,000/-Rs.85,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.IV. In case of an individual resident who is of the age of80 years or more at any time during the previous year:-
Income LevelIncome Tax Ratei.Where the total income does not exceed Rs.2,50,000/-.NILii.Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/-Niliii.Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-20% of the amount bywhich the totalincome exceeds Rs.5,00,000/-.iv.Where the total income exceeds Rs.8,00,000/-Rs.60,000/- + 30% of theamount by whichthe total incomeexceeds Rs.8,00,000/-.Education Cess: 3% of the Income-tax.
CBDT to examine the proposal of exemption of filing return for salaried taxpayer
CBDT to establish more CPCs, including one in Kolkata.
The Income Tax department is open to examining a proposal to exempt them from the annual chore.
Asked whether the department would think about doing away with Income Tax returns for employees, who had no other income apart from salaries in a financial year, Central Board of Direct Taxes chairman Sudhir Chandra said the department would certainly consider the proposal.
The Income Tax department is open to examining a proposal to exempt them from the annual chore.
Asked whether the department would think about doing away with Income Tax returns for employees, who had no other income apart from salaries in a financial year, Central Board of Direct Taxes chairman Sudhir Chandra said the department would certainly consider the proposal.
He agreed that for a substantial chunk of salaried employees, savings bank interest is the only additional income and that in most cases, this not substantial.
This proposal, if approved, will benefit a large section of people and would reduce the I-T department's workload in a big way.
Of the country's 35 million taxpayers, roughly half are salaried employees.
The proposal to do away with returns for salaried taxpayers was earlier internally mooted within CBDT a few years ago.
The argument in favour of the proposal was that income records for this class of taxpayer were available with both employers and banks.
Chandra also promised small taxpayers another major relief. He said the I-T department is planning to release all small-value refunds before March 31.
"I will ask my officials to give most refunds by the end of the current financial year," he said."We will try to clear most refunds in a month. At least small refunds can be given by March 31," Chandra added.The newly-appointed chairman said he would communicate this to his officials.Some of the refunds will be given to taxpayers directly through State Bank of India under the refund banker scheme.
Under this, tax refunds are sent to taxpayers by State Bank of India, either through the electronic clearing service mode or in physical form.
The scheme was launched four years ago in Delhi and Patna and later extended to other cities.
In 2009-10, the I-T department gave over Rs 58,000 crore (Rs 580 billion) in refunds, which was 50 per cent more than the previous year.CBDT has increased its target for processing refunds to Rs 70,000 crore (Rs 700 billion) in the current financial year.
Refunds increased by 19.5 per cent to Rs 44,000 crore (Rs (Rs 440 billion) up to December, 2010.
The I-T department has opened a Central Processing Centre in Bengaluru for faster processing of claims for electronically-filed returns.
It will roll out three more centres in the Manesar, Pune and Kolkata.
Source : Rediff News
Union Budget 2011: Income tax exemption limit raised to Rs 1.8 lakh
Finance Minister Pranab Mukherjee on Monday proposed to raise the income tax exemption limit for general tax payers to Rs 1.80 lakh per annum from Rs 1.60 lakh at present and introduced a high new tax slab for senior citizens of 80 years and above.
Unveiling the Budget proposals for 2011-12 in the Lok Sabha, he also proposed to reduce the age limit for consideration as senior citizens from 65 years to 60.
Senior citizens will get tax exemption for income up to Rs 2.5 lakh, higher from Rs 2.4 lakh now.
As per the announcement, the increase in the income tax exemption limit for general tax payers (excluding women and senior citizens) to Rs 1.8 lakh per annum would translate into a benefit of Rs 2,000 for all tax payers.
At present, the general tax payers earning more than Rs 1.6 lakhs per annum are required to pay income tax.
Introducing a new tax slab for very senior citizens (80 years and above), Mukherjee said, they will not have to pay any tax for annual income up to Rs 5 lakh.
Source : Economic Times
Unveiling the Budget proposals for 2011-12 in the Lok Sabha, he also proposed to reduce the age limit for consideration as senior citizens from 65 years to 60.
Senior citizens will get tax exemption for income up to Rs 2.5 lakh, higher from Rs 2.4 lakh now.
As per the announcement, the increase in the income tax exemption limit for general tax payers (excluding women and senior citizens) to Rs 1.8 lakh per annum would translate into a benefit of Rs 2,000 for all tax payers.
At present, the general tax payers earning more than Rs 1.6 lakhs per annum are required to pay income tax.
Introducing a new tax slab for very senior citizens (80 years and above), Mukherjee said, they will not have to pay any tax for annual income up to Rs 5 lakh.
Source : Economic Times
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