| Sr.No. | Nature of Payments | Period | Due Date of Payment | Due Date of Submission of Return |
|---|---|---|---|---|
| i. | TDS | Deducted during the month From April to February | 7th of Next Month | 15th of next month after completion of each Qtr |
| ii. | TDS | Deducted from during the month of March | On or before 30th April | 15th May |
| iii. | Excise | For All Assesses except SSI & If Period of Removal of Goods is from April to February | 5th of Next Month | 10th of Next Month |
| iv. | Excise | For All Assesses except SSI & If Period of Removal of Goods is in the month of March | 31st March | 10th of Next Month |
| v. | Excise | For SSI & If Period of Removal of Goods is from April to February | 5th of Next Month | 10th of Next Month |
| vi. | Excise | For SSI & If Period of Removal of Goods is in the month of March | 31st March | 10th of Next Month |
| vii. | Service Tax | If Service tax charged on revenue from April to February | 5th of Next Month (For e-payment 6th of Next Month) | Half year ended on 30th Sep, return to be filed by 25th October |
| viii. | Service Tax | If Service tax charged on revenue in the month of March | 31st March | Half year ended on 31st March, return to be filed by 25th April |
| ix. | Provident Fund | Monthly | 15th of Next Month | 21th of Next month |
| x. | Employees’ State Insurance | Monthly | 21st of Next Month | Half year ended on 30th September, return to be filed by 11th November |
| xi. | Employees’ State Insurance | Monthly | 21st of Next Month | Half year ended on 31st March, return to be filed by 12st May |
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As per section 24 of Income tax Act, 1961, Interest on borrowed capital is allowable as a deduction if capital is borrowed for the purpose of purchase, construction,repair, renewal or reconstruction of the house property.
However it is to be noted that if money is borrowed prior to acquisition or construction of house property, Aggregated Interest on borrowed capital is also allowable as deduction in five equal annual installments starting from the year in which acquisition or construction is completed as a pre-construction period Interest. Pre-construction Interest deduction is not allowable for renewal, repair or reconstruction of house property. Illustration: Person took home loan on April, 2009 for Rs.10, 00,000 for construction of house property carried Interest @ 10% p.a.. Construction completed on April 2011 and person has paid Rs.2, 00,000 as interest during financial year 2009-2010 and 2010-2011. Key Data: Loan taken on : April 2009 Construction completed on : April 2011 Pre- construction period : From April 2009 to April 2011 Pre- construction period interest : Rs.2, 00,000 Interest Deduction : Rs.40, 000 from financial year 2011-12 (AY 2012-13) onwards in 5 equal Annual installments Please note that only Pre construction period interest is allowed as deduction and not principal repayment. Pre EMI Interest: Normally we find word ‘Pre EMI Interest’ in Bank Statement and Tax certificate provided by bank for home loan.Here Pre EMI interest is different from Pre construction interest. Pre EMI interest is levied by bank for the period between date of disbursement and start of first EMI. Illustration: In the above example bank has disbursed Rs.10, 00,000 on April 2009 but EMI starts from July 2009. Hence Interest from April 2009 to July 2009 will be treated as Pre EMI Interest. There is no connection between Pre construction Interest and Pre EMI Interest. IF home loan is taken for the purpose of purchase, construction, repair, renewal or reconstruction, interest there on is allowed on accrual basis under section 24 of Income tax Act,1961
As per section 24 of Income tax Act, Maximum amount of Interest permissible in case of self occupied property is Rs.1,50,000 per co owner subject to actual Interest paid if the following conditions are satisfied; 1. Home loan is taken on or after 1st April, 1999 for acquiring or constructing a property. 2. Loan taken prior to 1st April, 1999 is eligible for maximum deduction of Interest up to Rs.30000 only. 3. Acquisition/Construction should be completed within three years from the end of financial year in which capital is borrowed. e.g. loan is borrowed on 2nd July, 2005 hence acquisition or construction should be completed by 31st March, 2009 i.e. three years from 31st March, 2006. 4. Person has to certify that Loan is taken for acquisition or construction of house or to repay principal amount outstanding under previously taken loan for acquisition or construction. 5. However for repairs, renewal or reconstruction maximum deduction of Rs.30000 is allowed and not Rs.150000. Co ownership E.g.IF person and his wife is co owner of house property then deduction of Rs.150000 is allowable to both husband and wife. Please note following points in this regards; 1. Ceiling of Rs.150000 is set for Self occupied property. 2. Persons should be co owner of property and their names should be mentioned in registered sale deed. 3. Their share of property should mention in sale deed in the absence of any such information ownership deemed to be equal between all co owners. 4. For claiming home loan interest deduction, each co owner must have taken loan jointly. 5. If persons have taken loan from more than one bank but for the same house property then also deduction is allowed. Apart from Home loan interest deduction, persons can claimed deduction U/s 80 C for repayment of principal on home loan within overall limit of Rs.1,00,000 per person. ______________________________________________________________________________________________ Click here to submit your query in case of any doubt regarding this article or provide your comments here.
As per notification no 43/2011-ST dated 25th Aug,2011, Every Service Tax Assessee is require mandatory e-filing of service tax return.
As of now, online filing is mandatory for Assessee who is liable to pay service tax more than Rs.10 Lacs which include cash and cenvat credit. However Due to this notification it is necessary for all assessee to file service tax return electronically. Section 50 C of Income Tax Act,1961 was inserted from Finance Act, 2002 w.e.f. 1st April, 2003 which states that While transferring any land or building or both if full sale value consideration is less than value adopted or assessed (Jantri Rates) by Stamp valuation authority (which is a revenue department of the state)for the purpose of payment of stamp duty in respects of this transfer than value so adopted or assessed will be taken as full value of consideration for computing capital gain.
However if assesse can prove to assessing officer that the value so adopted or assessed by stamp value authority is higher than fair market value than fair market value will be taken as Full value of consideration for calculating capital gain. Revenue department prepare Jantri rates (Ready Reckoner) to collect stamp duty base on Jantri Rates. Jantri rates are prepared after considering various factors relate to property where it is located. Jantri rates for a property can be found by ward number and survey number of property Due to recent increase in Jantri in Gujarat from 1st April, 2011, stamp duty expenses will be increase on new property transactions. Persons who brought property at older Jantri rates and hold the property will have to bear more capital gain due to increase value of property as per new Jantri rates while selling the same. As New provisions of Section 50 C of Income Tax Act, 1961, Full Sale value of the property cannot be less than Jantri rates unless assessee can proveto assessing officer that it is greater than fair market value of property than fair market value will be taken as sale consideration for computation of Capital Gains. State Government try to bring more transparency in real estate transactions by increasing Jantri rates but it will increase cost of property due increase in stamp duty and in some cases long term/short term capital gains. On 26th July, RBI raised repo rate and reverse repo rate by 50 BPS hence new rates will be 8% and 7% respectively. In the last 16 Months RBI increased rate 11 times.
RBI has increased rates to fight with inflation.Increase in rates will affect life of lay men on all sides. Cost of living would be so high. Few days back there was hiked in milk price by 2 rupees. Crude prices are also increasing which will increase cost of transportation. Increase cost of transportation will increase price of basic commodity. Worldwide effect of slow economy is also one of the reasons of increase in rates. Growth of Indian economy is also depending on agriculture. But if we will not get good monsoon this year then price of vegetables and oils will increase. Due to increase in rates, home loans and personal loans will be costlier. Interest burden will be increased on persons who have already taken home loan on floating rates. Hence it will make miserable life for lay men. It will become dreams who wants to buy home. Very soon we will get announcement from CBDT that where annual taxable income of salaried person from salary and interest is up to Rs.5 Lacs, no income tax return have to be filed.
However please note that where income from salary and Interest is only creteria for exemption of filing of return, when person having income from other heads of income like Capital gains, B&P and other sources he/she has to file the income tax return. Salaried person has to submit his income detail other than salary to his employer to include the same in Form No.16 . In such situation only Form No.16 can replace the income tax return and salaried person can get exemption from filing of return.Goverment will shortly notify by way of memorandam to finance bill 2011 by exempting above mention class of person from filing income tax return. Goverment will shortly notify by way of memorandam to finance bill 2011 by exempting above mention class of person from filing income tax return. For applying home loan , following list of documents require:
01. Salaried person: i. Home loan Application Form along with one passport size photograph ii. Identity Proof (e.g. PAN Card, Driving License) iii. Address Proof (e.g.Telephone Bill, Driving License) iv. Income proof (Last month salary slip) v. Form No.-16 for previous year VI. Income tax return for previous year vii. Banks statement of previous six months 02. Self employed Businessmen/Professionals: i. Home loan Application Form along with one passport size photograph ii. Identity Proof (e.g. PAN Card, Driving License) iii. Address Proof (e.g.Telephone Bill, Driving Licence) iv. Certificate of educational/professional qualifications v. Proof of business establishment vi. Income tax return for previous 3 years- Individual vii. Income tax return for previous 3 years- Business/Profession vii. Profit and Loss account and Balance sheet of previous 3years ix. In case of Business, some brief detail about business. x. Banks statement of previous six months Along with above list of documents for both categories of applicant, cheque of processing fees should be provided. Kindly note that above mention list of documents are minimum requirement for applying home loan. Requirement of additional documents will vary from bank to bank. On May 3rd, 2011 Reserve Bank of India increased repo rate (rate at which RBI provide short term borrowing to banks) and reverse repo rate (rate at which bank invest fund for short term purpose with RBI) by 50 basis points (1 basis point = 0.01%). And also increase saving bank interest rate from 3.5% to 4% p.a. Hikes in the rates will affect cost of borrowing of home loan and auto loan. Generally, auto loans are having fixed interest rate hence it will not affect to existing customer but for fresh customer, auto loan will be costlier. In case of home loan, floating rate will change due change in rate by RBI. Home loan will be costlier by 0.50%. RBI has taken this step to control inflation. Good news is that RBI hiked the saving interest rate from 3.5 % to 4% which will increase interest revenue who are parking more fund in saving accounts. | ArchivesJune 2012 CategoriesAll Loading
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