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The44AB section stipulates that every person carrying on business or profession is required to get his accounts audited by a chartered accountant before the "specified date" and furnish by that date the report of such audit, if the total sales, turnover or gross receipts exceed Rs.60 lakhs in the case of business and gross receipts exceed Rs.15 lakhs in the case of...

Under the existing provisions of section 44AB, every person carrying on business is required to get his accounts audited if the total sales, turnover or gross receipts in the previous year exceed sixty lakh rupees. Similarly, a person carrying on a profession is required to get his accounts audited if the total sales, turnover or gross receipts in the previous year exceed...

Sales, turnover, gross receipts

It will be noted that the provision relating to tax audit applies to every person carrying on business, if his total sales, turnover or gross receipts in business exceed Rs.60 lakhs and to a person carrying on a profession, if his gross receipts from profession exceed Rs.15 lakhs in any previous year. However, the term "sales", "turnover" or...

1. Fixed medical allowance is always chargeable to tax. 2. The perquisite in respect of medical facility provided by an employer in the following hospitals/clinic is not chargeable to tax – a) Hospital owned/maintained by the employer. b) Hospital of Central Government/ State Government/ local...

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Market regulator Sebi today notified wide-ranging reforms for mutual fund sector, which would provide incentives to fund houses for expanding to small cities but might result in additional costs for investors.

The changes, which would come into effect from next month, would require fund houses to make half-yearly financial results within one month of the end of every six-month period, Sebi...

In this article I’ll be discussing the valuation of a rent free unfurnished accommodation given to an employee as a perquisite. The term accommodation includes a flat, farm house (or part thereof) or accommodation in a hotel, motel, service apartment, guest house, caravan, mobile home, ship or...

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Taxmen seek manpower, perks to mobilise Rs 25,000 cr extra revenue

Taxmen will mobilise an additional Rs 25,000 crore revenues each year in case government approves hiring 20,000 personnel afresh and recast existing pay and promotions structure for revenue officials to bring them on par with administrative, forest and foreign services.
The annual additional pay burden on the government due to this restructuring of income tax department would be Rs 400 crore that would be less than 2 percent of extra revenues to be mobilised.Top taxation officials and chief commissioners of income tax will moot this proposal before finance minister Palaniappan Chidambaram when they meet him on Monday(03/09/2012).
Chidambaram has a scheduled date with tax officials to review the first quarter performance of direct tax collections on September 3. Such review was held by Chidambaram with customs, excise and service tax officials last fortnight.“With restructuring of tax department, hiring new income tax officers (ITOs) and middle level personnel, we will be able to deliver better. And, we propose to bring this before finance minister” said a revenue department official on condition of anonymity.Tax officials will press for early consent to a proposal before union cabinet on restructuring of taxation department along with pay, promotions and bringing them on par with their IAS, IPS and IFS counterparts.Committee of secretaries led by cabinet secretary Ajit Kumar Seth that reviewed the proposal pending before the cabinet is yet to take a call in last three months.Chidambaram’s predecessor, Pranab Mukherjee had pushed for early cabinet clearance of taxation department restructuring but the ‘powerful IAS lobby’ in the secretaries’ panel effectively thwarted the proposal, revenue officials said.Revenue service officials alleged that it would take 37 years an IRS officer to attain secretary rank while IAS officers could reach there in 31 years. Interestingly enough, there is no revenue service officer in the rank of secretary out of 4192 officials. There is none even in rank of special secretary from revenue service.In comparison, there are 246 officers from IAS that enjoy the rank of secretary from a total 4423 officers.Comparative lower pay scales, grade and structuring of revenue service cadres have also become eye sore for the taxation officials.Revenue officials will seek intervention of P.Chidambaram to ‘get this anomaly’ corrected along with addition of 20,000 IT officials at lower levels. Out of this, revenue department thinks that just 1000 new revenue service officers would be required.With this, the taxation officials will be able to scrutinize at least two percent of tax returns as against one percent as on date. “With expanded workforce, this will be possible and additional revenue worth Rs 25,000 crore” said the official.Revenue department has made out a case for larger workforce pointing to the fact that direct taxes revenue has grown by seven times to Rs 4.46 lakh crore in 2010-11 as against a meager Rs 69,000 crore in 2001-02.But, in the meantime, the manpower has declined to 57,793 from 60,250 personnel in 2001.Nevertheless, the taxation department pulled all strings to mop up about Rs 500,000 crore in 2011-12 through direct taxes. For this financial year, the government has set a target of Rs 570,257 crore revenue mop up.Though the stagnation continues to bog the taxation department, the contribution of direct taxes to the government kitty went up to a staggering 65.98 percent in 2009-10 from 36.31 percent in 2000-01.Further, the scrutiny workload on the thinly spread taxation officials has moved up to 6.5 lakh in 2010-11 as against 2.17 lakh returns. Further, the income tax department has stretched itself to new areas like services, international taxation, tax deducted at source (TDS), internal audit, transfer pricing, large tax units (LTUs), criminal investigation cases, overseas tax units.Revenue officials are banking on promised additional revenue of Rs 25,000 crore could clinch the deal for them even if unwillingly by the government and opposition from their IAS counterparts.
Source : An article by Sri K.A. Badrinath, Published in mydigitalfc.com on 5.9.2012

The first reason assigned by the Director for denying registration to the assessee under section 12A was that the object of the assessee are not for the benefit of general public but for specific members viz., benefit of companies who are engaged in commercial activities to improve their production...

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 It was found from the assessment order for assessment year 1985-86 and from the order of Commissioner of Income-tax (Appeals) that the assessee had made payments to schools other than those promoted by it which fact has not been discussed either in the Order of ITAT or in the Order of the High...

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Trade Cir. No. 17T of 2012 You are well aware that Hon'ble Bombay High Court in case Maharashtra Chamber of Housing Industry (MCHI) has delivered a judgment and confirmed the levy of the tax in respect of sale of under construction flats etc. Thereafter, this office issued a Trade Circular cited at...

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Examination Department of the Institute would like to avail the services of the members of the Institute (upto 15 years of Experience) to act as Checker for totaling etc. of marks awarded by examiner, other details are as under:

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Key features of NSDL Return Preparation Utility (RPU) version 3.1 .. Aforementioned FVU version will be mandatory w.e.f October 16, 2012.

3. Import of challan file (.csi file): Import of challan file downloaded from the TIN website (Challan Status Inquiry) has been made mandatory at the time of...

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CBDT has vide Notification No. 40/2012 dated 20-9-2012 allowed charitable or religious trust or institution to invest in debt instruments issued by any infrastructure Finance Company registered with the Reserve Bank of India.

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It is important to bear in mind uncontroverted claim of the assessee that there were sufficient reserves and surplus, which were eligible for distribution as 'dividend', and the NIPL had sufficient cash balances as well. The nature of amounts...

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The deduction under section 80-IA(4)(iv)(c) is allowed for a period of ten years. The dispute in the present appeal is as to whether assessment year 2005-06 should be the first year in which the deduction should be allowed. It was clarified at the...

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The economic problems of milk producers are such that the Parliament/CBDT felt it necessary to incorporate that milk producer should be free to receive payments in cash. Of course, such exclusion from the rigour of the provisions of section 40A(3),...

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Deduction/Collection of direct tax at source plays one of the most crucial roles in mobilizing direct tax revenue. It is imperative to note that in the last year about 36% of total Direct Tax collection was made through TDS/TCS only. The TDS wing of the department registered an annual growth of...

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There may be cases where the Assessing Officer does not and may not raise any written query but still the Assessing Officer in the first round/ original proceedings may have examined the subject matter, claim etc, because the aspect or question may...

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In the absence of a finding rejecting the accounts of the assessee, the reference to the DVO could not have been made by the Assessing Officer in the first place.   It is evident that the valuation in the instant case was uncritically accepted by...

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Interest expenses directly attributable to tax exempt income as also directly attributable to taxable income, are required to be excluded from computation of common interest expenses to be allocated under rule 8D(2)(ii).

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... details candidates will have to bring the Original admit card/Call Letter,Original Payment Receipt and Identity Proof such as passport /PAN Card/Driving Licence/Voter's Card/Bank Passbook with duly attested Photograph/Identity Card issued ...

Foreign Exchange Management Act, 1999-Import of gold in any form including jewellery made of gold/precious metals or / and studded with diamonds / semi precious / precious stones - clarification

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Notification No.43/2012-Customs (ADD) New Delhi, dated the 21st September, 2012             G.S.R. 710 (E). – Whereas in the matter of import of Resin or other organic substances bonded wood or ligneous fibre boards of thickness below 6mm, except insulation boards, laminated fibre boards and...

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