Directorate of Income Tax (IT) has issued notification VI notifying the Amended Rules, the scheme of Examination for Partially Qualified Candidates of Old Pattern and SC/ST candidates aiming for betterment of their result. As per the Notification, the Ministerial Exam 2010 shall be held in the Old Pattern only.
View the Notification
Amended Dept Exam Rule for ITOs
Amended Dept Exam Rule for ITIs
Time Table for Dept Exam 2010
Tuesday, August 31, 2010
Monday, August 30, 2010
Special Pay for Group A officers in Directorates and advance increments for staff restored
10% Special pay for Gr A officers in different directoratee and CBDT with a maximum of 4000 Rs has been restored.
CBDT also clarifies that official passing Dept. Examinations will be continuing to get two advance increments as per earlier entitlement.
View the O.M.
CBDT also clarifies that official passing Dept. Examinations will be continuing to get two advance increments as per earlier entitlement.
View the O.M.
Friday, August 27, 2010
Tax code offers relief - Exemption limit raised, retirement benefit safe
The Union cabinet today approved a direct tax code that seeks to raise the tax-free income limit to Rs 2 lakh a year from Rs 1.6 lakh at present.
The 25 per cent increase in the threshold promises relief to nearly 30 million taxpayers in the country. (See chart)
Women and senior citizens will be eligible for higher limits but these were not immediately available. At present, the tax-free limit for women is capped at Rs 1.9 lakh and that for senior citizens at Rs 2.4 lakh.
The tax code — which will be presented in the form of a bill in Parliament — also aims to scrap the various cesses and surcharges on corporate tax and waive taxes on retirement benefits.
“The objective of the tax code is to limit the number of tax exemptions and simplify tax laws,” finance minister Pranab Mukherjee told reporters after the cabinet meeting.
The tax code carries indicative tax slabs but it will be Parliament’s prerogative to decide on the eventual rates, officials said.
Sources said the indicative slabs have suggested a 10 per cent tax on incomes between Rs 2 lakh and Rs 5 lakh, 20 per cent on incomes between Rs 5 lakh and Rs 10 lakh, and 30 per cent on incomes above Rs 10 lakh.
The corporate tax rate for domestic companies is being retained at 30 per cent. However, the surcharges which add up to another 3 per cent will be scrapped. The first draft of the tax code had proposed to lower the corporate tax rate to 25 per cent but this is being put off for now, the officials added.
The officials said savings of up to Rs 2 lakh may be tax-free, which is currently capped at Rs 1 lakh. These would cover investments in approved securities that are likely to “include fixed deposits, small savings, insurance and other savings products”.
As a result, individuals who plan their taxes carefully could get away without paying taxes on an income of up to Rs 4.5 lakh.
Officials confirmed that all retirement benefits and pension savings would remain tax-free, quelling widespread concern over the application of the exempt-exempt-tax (EET) regime that former finance minister P. Chidambaram had tried to usher in through the first draft of the direct tax code. This would have taxed savings at the last stage when these instruments matured.
However, Mukherjee took a politically wise decision not to tax retiring employees, which would have inflamed passions and increased the paperwork for tax collectors.
Money parked in the general provident fund, public provident fund, recognised provident funds run by companies, pension schemes run by the pension regulator, and pure life insurance products will also remain tax-exempt at all stages.
Similarly, retirement benefits including money which workers get from voluntary retirement schemes will be totally exempt from tax up to a limit to be determined by the government. In the earlier draft, these benefits were supposed to be taxed.
Officials said the new code would not compute the perquisite value of rent-free housing provided by companies based on market value, as had been earlier proposed. Medical benefits and leave travel allowance will also not be treated as taxable perquisites while computing the gross salary for tax purposes. In the case of houses let out by owners, the gross rent for taxation will be the actual rent received.
Officials said the revised draft allowed deduction in capital gains made on the sale of shares held for more than a year.
Source : The Telegraph
Thursday, August 26, 2010
Cabinet gives nod to Direct Taxes Code Bill
The Cabinet on Thursday approved Direct Taxes Code (DTC) Bill, clearing decks for tabling the legislation in the Monsoon Session of Parliament so that the new Act ushering in reduced tax rates and exemptions may come into effect from next fiscal.
The Cabinet cleared the bill, highly placed sources said. When enacted, DTC will replace the archaic Income Tax Act and simplify the whole direct tax regime in the country.
The code aims at reducing tax rates, but expanding the tax base by minimising exemptions.
The Finance Ministry had earlier come out with a draft on the DTC bill, some of whose provisions drew strong criticism from industry as well as the public.
To address those issues, the ministry brought out the revised draft, dropping earlier proposals of taxing provident funds on withdrawal and levying Minimum Alternate Tax on corporates based on their assets.
"As of now, it is proposed to provide the EEE (Exempt- Exempt-Exempt) method of taxation for Government Provident Fund (GPF), Public Provident Fund (PPF) and Recognised Provident Funds (RPF) ...", the revised DTC released by the Finance Ministry said.
The revised draft also puts pensions administered by the interim regulator PFRDA, including pension of government employees who were recruited since January 2004, under EEE treatment.
The first DTC draft had proposed to tax all savings schemes including provident funds at the time of withdrawal bringing them under the EET (Exempt-Exempt-Tax) mode.
Under the EEE mode, the tax exemption is enjoyed at all the three stages--investment, accumulation and withdrawal.
As regards MAT, it has been clarified that tax would be levied on the book profit, as is the current practice, and not on gross assets has proposed in the draft. The government, Mitra said, had received 1,600 representations on the first draft which was made public in August last year.
The second draft, however, did not give any details on the income tax structure such as the slabs or rates, which were provided in the first draft released in August 2009.
The first draft had suggested 10 per cent tax on income from Rs 1.60-10 lakhs and 20 per cent on income between Rs 10-25 lakhs and 30 per cent beyond that. However, officials later said these slabs were illustrative.
The officials said the tax rates would be made known only in the proposed Act.
The earlier DTC draft had proposed to reduce the corporate tax to 25 per cent from the present 30 per cent. The revised proposal has also made it clear that tax incentives on housing loans will continue. Payment on interest on housing loans up to Rs 1.5 lakh will continue. The earlier draft was silent on housing loans.
View Direct Tax Code 2009
The Cabinet cleared the bill, highly placed sources said. When enacted, DTC will replace the archaic Income Tax Act and simplify the whole direct tax regime in the country.
The code aims at reducing tax rates, but expanding the tax base by minimising exemptions.
The Finance Ministry had earlier come out with a draft on the DTC bill, some of whose provisions drew strong criticism from industry as well as the public.
To address those issues, the ministry brought out the revised draft, dropping earlier proposals of taxing provident funds on withdrawal and levying Minimum Alternate Tax on corporates based on their assets.
"As of now, it is proposed to provide the EEE (Exempt- Exempt-Exempt) method of taxation for Government Provident Fund (GPF), Public Provident Fund (PPF) and Recognised Provident Funds (RPF) ...", the revised DTC released by the Finance Ministry said.
The revised draft also puts pensions administered by the interim regulator PFRDA, including pension of government employees who were recruited since January 2004, under EEE treatment.
The first DTC draft had proposed to tax all savings schemes including provident funds at the time of withdrawal bringing them under the EET (Exempt-Exempt-Tax) mode.
Under the EEE mode, the tax exemption is enjoyed at all the three stages--investment, accumulation and withdrawal.
As regards MAT, it has been clarified that tax would be levied on the book profit, as is the current practice, and not on gross assets has proposed in the draft. The government, Mitra said, had received 1,600 representations on the first draft which was made public in August last year.
The second draft, however, did not give any details on the income tax structure such as the slabs or rates, which were provided in the first draft released in August 2009.
The first draft had suggested 10 per cent tax on income from Rs 1.60-10 lakhs and 20 per cent on income between Rs 10-25 lakhs and 30 per cent beyond that. However, officials later said these slabs were illustrative.
The officials said the tax rates would be made known only in the proposed Act.
The earlier DTC draft had proposed to reduce the corporate tax to 25 per cent from the present 30 per cent. The revised proposal has also made it clear that tax incentives on housing loans will continue. Payment on interest on housing loans up to Rs 1.5 lakh will continue. The earlier draft was silent on housing loans.
View Direct Tax Code 2009
Wednesday, August 25, 2010
Cabinet likely to consider Direct Tax Code Bill tomorrow (26.08.2010)
Struggling to meet the deadline of introducing a much awaited tax reforms bill, the Cabinet is likely to consider the Direct Taxes Code on Thursday, a move aimed at rationalising rates and improving tax compliance.
A proposal is before the Union Cabinet for consideration and passage of the DTC Bill, a source told PTI.
The government plans to introduce DTC, which will replace the archaic Income Tax Act, from next fiscal. The government is, however, unlikely to meet the deadline for introduction of yet another important piece of tax reforms - the Goods and Services Tax.
If introduced in the monsoon session that ends on August 31, the DTC Bill is expected to be referred to a Parliamentary Standing Committee on finance and may be passed during the winter session to make the reforms effective from the deadline -- April 1, next year.
Source : PTI
A proposal is before the Union Cabinet for consideration and passage of the DTC Bill, a source told PTI.
The government plans to introduce DTC, which will replace the archaic Income Tax Act, from next fiscal. The government is, however, unlikely to meet the deadline for introduction of yet another important piece of tax reforms - the Goods and Services Tax.
If introduced in the monsoon session that ends on August 31, the DTC Bill is expected to be referred to a Parliamentary Standing Committee on finance and may be passed during the winter session to make the reforms effective from the deadline -- April 1, next year.
Source : PTI
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