Deduction from taxable income in respect of certain payments
Section 80C [Deduction upto Rs 1.5 Lacs]
1. Life Insurance Premium
Policy issued LIP should be restricted to
Before 1/4/12 20% of Actual Capital Sum insured
On or after 1/4/12 10% of Actual Capital Sum insured
On or after 1/4/13 for person suffering from disability 15% of Actual Capital Sum insured
Any sum received under Life Insurance Policy (except keyman insurance policy) along with
bonus is exempt from tax if premium was payable as per aforesaid restriction. However amount
received on death of insured is exempt in all cases (except keyman insurance policy).

2. Deferred Annuity Contract (Self, Spouse, Child) (LIC/Other insurer notified by central
government)

3. Contribution to
a. RPF (employee) / SPF (Government employee) / PPF(Self, Spouse, Child)
b. Approved Super Annuation Fund (Employee)
c. ULIP of UTI (Self, Spouse, Child) / LIC-MF (Self, Spouse, Child)
d. Pension Fund setup by MF/NHB (Lock in period: 5 years)
e. Pension Fund setup by LIC or Other insurer (80CCC), setup by Govt (80CCD)
f. Sukanya Samriddhi Yojna Account
g. Senior Citizen Saving Scheme 2004 (SCSS)

4. Subscription to
a. National Saving Certificate
b. Mutual Fund units
c. Equity Share/Debenture of Public Co. or Public Financial Institution approved by CBDT
(Lock in period: 3 years)
d. Notified bonds of NABARD

5. Deposits
a. Deposit Scheme of National Housing Bank
b. Notified deposit scheme of
i. Public Sector Company providing finance for house
ii. Authority of housing, development etc.
c. Post Office Saving Bank 10/15 year A/c
d. Post Office 5 year Time Deposit A/c
e. Senior Citizen 5 year Saving A/c
f. 5 year FD A/c with scheduled Bank under scheme of central government
6. Residential house property
a. Amount spent in purchasing/constructing (Lock in period: 5 years)
b. Stamp duty and registration charges
7. Tuition fees of 2 children to University/College/School in India
Section 80CCG [Equity Saving Scheme]
• Acquire Listed Equity Shares or Listed units of Equity oriented funds (notified by central
government)
• Deduction allowed: 50% of investment
• Maximum deduction: Rs. 25000/-
• Lock in period: 3 years from date of acquisition (Capital Gain exempt if sold after 3 years)
• Deduction can be claimed for 3 consecutive years
Eligibility:
1. Resident Individual should be a new retail investor
2. Gross Total Income is upto Rs. 12 Lac (GTI is the income before allowing any deduction under
this chapter)
Section 80D [Medical Insurance Premium for Individual/ Hindu Undivided Family]
For Individual:
- Purpose
1. Keep in force health insurance for self, spouse, dependent children
2. Preventive Health Checkup of self, spouse, dependent children
3. Contribution to Central Gov Health Scheme
4. Keep in force health insurance for parents of individual
5. Preventive Health Checkup of parents of individual

 Expenditure allowed
1. Rs. 15000 for self, spouse, dependent children (wherein expense on preventive health
checkup shall not exceed Rs. 5000)
2. Rs.15000 for parents (wherein expense on preventive health checkup shall not exceed
Rs. 5000)
Rs. 15000 should be replaced for Rs. 20000 in case of a senior citizen
- Payment mode
Preventive Health Checkup: Any
Other purpose: Other than cash

For HUF:
- Purpose: Keep in force an insurance on health of any member of HUF
- Expenditure allowed: Rs. 15000/- (In case of senior citizen Rs. 20000/-)
- Payment mode: same as above
Section 80E [Interest on Loan for Higher Education]
- Interest on Loan for Higher Education (after 12th) of self/ spouse/ children
- Deduction is available for 8 years beginning from the year in which payment of interest on the
loan begins

Section 80EE [Interest on Loan for Residential House]
- If an individual who does not own any other residential property on the date of sanction of loan
- took loan during 1/4/13 to 31/3/14 not exceeding Rs. 25 Lac
- for buying house worth Rs. 40 Lac or less
- deduction can be claimed for interest payment of Rs. 1 lac
- from incomes of years 13-14 and 14-15 in totality.
Section 80TTA [Interest earned on Saving A/c]
Upto Rs. 10000 interest earned on deposit in saving bank account (not time deposit/ FD) is
allowed to be deducted from taxable income

Credits: CA Rupal Jain

To Apply the New PAN Card
go to https://tin.tin.nsdl.com/pan/ (Official Website)

Two Passport size photographs
Proof of Identity (POI) click here for list of acceptable POI
Proof of Address (POA) click here for list of acceptable POA
Proof of Date Of Birth (POD) click here for list of acceptable POD
Note:
Proof of Identity (POI) and Proof of Address (POA) should be in the Name of the Applicant
Name mentioned in the online form should mandatorily match with the name in the Proof of Identity (POI)

Can I obtain or use more than one PAN card?
Obtaining/possessing more than one PAN card is against the law and may attract a penalty up to Rs10,000. Therefore it is advisable not to obtain/possess more than one PAN. If you have more than one PAN, you should surrender the unused PAN Click here to cancel PAN card/s if inadvertently allotted to you

Who can apply on behalf of a minor, mentally challenged, deceased and wards of court?
Section 160 of IT Act, 1961 provides that a minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons may be represented through a Representative Assessee (RA).
In such cases, in the application for PAN card, details of the a minor, mentally challenged, deceased, wards of court, etc. should be provided.
Details of representative assessee have to be provided in the online form by clicking the option 'yes' on the question - "Do you want to have a Representative Assessee (RA)" Click here to apply with Representative Assessee

How long will it take for the application to be processed?
30 working days* for a new PAN Card to be issued
30 working days* for a change/correction in PAN Card data
30 working days* for reissuance of PAN Card
* Above mentioned timelines are indicative only. The actual time for processing and issuance of PAN card may vary subject to time taken by UTI-ITSL

What should I do after printing the form and where should I submit my PAN application?
Affix your photograph on both top corners of the application form, Sign/Left Thumb impression (preferably in black ink) across this photo on the left hand side of the form and Sign/Left Thumb impression (preferably in black ink) within the box provided in the right hand side of the form. After completion of affixing photo and Sign/Left Thumb on the application form attach photocopies of supporting documents (proof of identity, proof of address, etc)

FAQ'S
Can an application for PAN be made through Internet?
Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through Internet.
eMudhra Consumer Services Limited helps you to apply for PAN Card in a few easy and convenient steps. The services rendered include verifying, supporting and filing the application forms for those who are applying for new PAN card, corrections and changes to their existing PAN data and request for duplicate or replacement of lost or damaged PAN card.
Credits: Excelhub
CLICK HERE / CLICK HERE TO DOWNLOAD PAN CARD APPLICATION IN EXCEL WITH DATABASE

What shall be considered as Startup?

* An entity shall be considered as a ‘startup’:
- Till five years from the date of its incorporation / registration;
- If its turnover for any of the financial years has not exceeded rupees 25 crore, and
- It is working towards innovation, development, deployment or commercialization of
new products, processes or services driven by technology or intellectual property.

* Provided that any such entity formed by splitting up or reconstruction of a business already
in existence shall not be considered a ‘startup’;

* Provided further that in order to obtain tax benefits a startup so identified under the above
definition shall be required to obtain a certificate of an eligible business from the Inter-
Ministerial Board of Certification consisting of:
- Joint Secretary, Department of Industrial Policy and Promotion,
- Representative of Department of Science and Technology, and
- Representative of Department of Biotechnology.


* Entity means a private limited company, or a registered partnership firm or a limited liability
partnership.

* Turnover is as defined under the Companies Act, 2013.

* An entity is considered to be working towards innovation, development, deployment or
commercialization of new products, processes or services driven by technology or intellectual
property if it aims to develop and commercialize:
- A new product or service or process, or
- A significantly improved existing product or service or process that will create or add
value for customers or workflow.
Provided that the mere act of developing:
- products or services or processes which do not have potential for commercialization, or
- undifferentiated products or services or processes, or
- products or services or processes with no or limited incremental value for customers or
workflow

would not be covered under this definition.

* The process of recognition as a ‘startup’ shall be through mobile app/portal of the Department of
Industrial Policy and Promotion. Startups will be required to submit a simple application with any of
following documents:
- a recommendation (with regard to innovative nature of business), in a format specified
by Department of Industrial Policy and Promotion, from any Incubator established in a
post-graduate college in India; or
- a letter of support by any incubator which is funded (in relation to the project) from
Government of India or any State Government as part of any specified scheme to
promote innovation; or
- a recommendation (with regard to innovative nature of business), in a format specified
by Department of Industrial Policy and Promotion, from any Incubator recognized by
Government of India; or
- a letter of funding of not less than 20 per cent in equity by any Incubation Fund/Angel
Fund/Private Equity Fund/Accelerator/Angel Network duly registered with Securities and
Exchange Board of India that endorses innovative nature of the business. Department of
Industrial Policy and Promotion may include any such fund in a negative list for such
reasons as it may deem fit; or
- a letter of funding by Government of India or any State Government as part of any
specified scheme to promote innovation; or
- a patent filed and published in the Journal by the Indian Patent Office in areas affiliated
with the nature of business being promoted.

* Department of Industrial Policy and Promotion may, until such mobile app/portal is launched
make alternative arrangement of recognizing a ‘startup’. Once such application with relevant
document is uploaded a real-time recognition number will be issued to the startup. If on
subsequent verification, such recognition is found to be obtained without uploading the
document or uploading any other document or a forged document, the concerned applicant
shall be liable to a fine which shall be fifty per cent of paid up capital of the startup but shall
not be less than Rupees 25,000.

* This notification shall come into force on the date of its publication in the Official Gazette
Disclaimer: This document contains the views and analysis of the author regarding the mentioned
Act and it is for personal and private circulation and not bearing any opinion or advice.
Prepared By:
Credits:Mohit Gupta,
B Com. (Hons.), FCA, LLB,

Prime Minister Narendra Modi first announced the Start-up campaign on 15th August from the Red Fort & now on 16th January 2016, he launched the most awaited movement #StartupIndia which has brought lots of positivity among the entrepreneurs in India. The event was inaugurated on 16 January 2016 by the finance minister Arun Jaitley. Among the attendees were around 40 top CEOs and startup founders and investors from Silicon Valley as special guests including Masayoshi Son, CEO of SoftBank, Kunal Bahl, founder Snapdeal, Ola founder Bhavish Aggarwal, Paytm founder Vijay Shekhar Sharma, Travis Kalanick, founder of Uber, Adam Nuemann, CEO of WeWork, Sachin Bansal, founder of Flipkart and others.

 WHAT IS START UP INDIA?? 
Startup India is an action plan to develop an ecosystem to promote and nurture entrepreneurship across the country. This is aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage startups with jobs creation. The launch of Start Up India plan has generated huge enthusiasm among young entrepreneurs. “Start-up does not only mean a company with billions of dollars of money and 2,000 employees. If it is able to provide employment to even five people, it would help in taking the country forward. Young people have to change their mind sets from being job seekers to try and become job creators”-Modi Ji said.

WHO IS ELIGIBLE?
A startup is an entity, private, partnership or limited liability partnership (LLP) firm that is headquartered in India, which was opened less than five years ago and have an annual turnover less than Rs25 crore including new startups. To be eligible for considering as startup, the entity should not be formed by splitting up or reconstruction and its turnover should not have crossed Rs25 crore during its existence. To become eligible as a startup and get a green signal from the Inter-Ministerial Board, the entity should be the one which aims to develop and commercialise, a new product or service or process or a significantly improved existing product or service or process that will create or add value for customers or workflow.

The Ministry of Human Resource Development (HRD) and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and National Institutes of Pharmaceutical Education and Research (NIPERs). First Sight of Startup India

1. Self-Certification based compliance The Startup plan 2016 is based on Self-Certification compliance & proposes to remove compliances with labour laws (like payment of gratuity, contract labour, employees provident fund, water and air pollution acts) and no inspection will be conducted by government officials for a period of 3 years, thereby reducing regulatory burden. This is a great step towards making the things simpler and can focus on innovation devoting lesser time to regulatory norms.

2. Startup India Hub A single point of contact for the entire startup ecosystem.
Startup Hub will be setup and will act to guide and support for startups and to enable knowledge exchange through their entire journey. There will be Hand holding facility to solve issues of startups and to advise them. In addition, there will be single window clearance for clearances, approvals, and registrations.

3. Registration by Mobile application Startup plan 2016 proposes to create mobile app which would allow entrepreneurs to register applications, tracking of status, etc. Mobile app forum to be launched from 1st April 2016. This will be great advantage for startup regarding registration.

4. Intellectual property right scheme to facilitate patent registration Providing Panel of facilitators to provide legal support to startups in filing applications for patents, trademarks & designs under relevant acts. Entire fees of facilitators shall be bear by Government for any number of applications that a startup may file. This action would enable entrepreneurs for hassle free startups and will provide confidence of not losing ideas to any other.

5. Rebate on filing of patent applications 80% rebate in fees on filing of patent application for startups to reduce costs in their crucial formative years. Structure like Chamber of commerce to be formed for legal support.

6. Relaxed norms of public procurement for Startups Startups to get equal platform vis-à-vis the experienced businesses in public procurement. For this, Manufacturing sector shall be exempted from the criteria of prior experience or turnover without any relaxation in quality or technical parameters.
7. Faster exits for startups Provision for fast-tracking closure of businesses have been included in The Insolvency and Bankruptcy Bill, 2015 to make it easier for startups to exit.

Startups with simple debt structures may be wound up with in 90days from making application for winding up on a fast-track basis.

8. Funding support with a Corpus of Rs. 10,000 crores For development and growth of innovation driven enterprises, Government will set up a fund with an initial corpus of Rs. 2500/- and a total corpus of Rs. 10,000/- crores in next 4 years.

9. Credit guarantee funds of Rs 500 crores To inspire entrepreneurship through credit to innovators across all the sections of society, credit guarantee mechanism through NCGTC (National Credit Guarantee Trust Company)/SIDBI shall be rolled out with a budgetary corpus of Rs. 500 crores for the next four years.

10. Capital gains tax exemptions If capital gains are invested in Funds of funds recognised by the government, Capital gains tax exemptions shall be there. And in addition to this, existing capital gain tax exemption for investment in newly formed manufacturing MSMEs by individuals shall be extended to all Startups.

11. Income tax exemption for 3 years for Startups Startups setup after 01 April 2016 shall be exempted from income tax for a period of 3 years for promoting the growth of startups.

12. Innovation focused Programs for students Innovation focused Programs shall be initiated to target school kids with an outreach to 10 lakh innovations from 5 lakh schools. A grand challenge program to support and award Rs. 10 lakhs to 20 student’s innovations.

13. Annual Incubator Grand Challenge 10 world class incubators to be selected and these would be given Rs. 10 crores each as financial assistance which may be used for increasing the quality service offerings.

14. Setting up of 7 new research parks Government shall set up 7 new research parks including 6 in IITs (Indian Institute of Technology) & 1 in IISc (Indian Institute of Science campus) with an initial investment of Rs. 100 crores each for expertise of academic/research institutions.

15. Setting up of 35 new incubators in institutions Funding support shall be given by government for establishment of new incubators in existing institutions.

16. Atal innovation mission (AIM) to be launched Startup India 2016 announced the launch of AIM. Atal innovation mission shall have the functions of Developing sector specific incubators, establishment of tinkering labs & 3D printers across countries, preincubation training, strengthening of existing incubation facilities, seed funding etc. AIM will be an Innovation Promotion Platform involving academics, entrepreneurs, and researchers drawing upon national and international experiences to foster a culture of innovation, R&D in India. The platform will also promote a network of world-class innovation hubs and grand challenges for India.

 17. Promote entrepreneurship in biotechnology Five new bio clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.

18. Tax Exemption for Investments Above Fair Market Value To promote investments by Venture Capital Funds and incubators, investment made above FMV shall be exempted.

19. Innovation centers at National Institutes Startup India 2016 has announced the setting up of 31 centres of innovation and entrepreneurship at National Institutes, 13 startup Centers & 18 Technology Business Incubators.

20. Women entrepreneur’s policy New policies for women entrepreneur shall also to be framed.

21. Focus on zero defect & zero effect. Startup Action Plan will bring the aspiring entrepreneurs and investors on a common platform. It’s a great step that will extract the innovations & ability of Indians to innovate and solve the unique problems that we face in our country. It will bring the aspiring entrepreneurs and investors on a common platform. Credits: CA Shivani Mangla For suggestions & feedback : [email protected]

Key Features of ICDS:
1. Effective Date of ICDS is 01stApril, 2015 i.e. FY:2015-16 & AY: 2016-17.

2. ICDS applicable to all Assesses i.e. Corporate & Non Corporate Assesses.

3. No Net Worth or Turnover Criteria Prescribed for applicability.

4. Entity need not to maintain Books of accounts for ICDS. ICDS is only for computation of income under the head “Profit and gains of business or profession” or“Income from other sources”.

5. ICDS is meant for normal computation of income not for Minimum Alternate Tax (MAT) Calculation.



6. In the case of conflict between the provisions of the Income‐tax Act, 1961 and Income Computation and Disclosure Standard, the provisions of the Act shall prevail to that extent.
Few major highlight area.
a. Inventories: (ICDS-II): Clause No:22 envisage valuation opening stock i.e. The value of the inventory as on the beginning of the previous year shall be i. the cost of inventory available, if any, on the day of the commencement of the business when the business has commenced during the previous year; and ii. the value of the inventory as on the close of the immediately preceding previous year, in any other case. If one enterprise want to change its valuation of closing stock from FIFO to weighted average method then entity cannot change it’s opening stock by virtue of above clause. Such type of clause is not presented in INDAS-2 & AS-2b.
b. Construction Contract: ICDS-III: Clause No:20 envisage revenue recognition of contract at early stage i.e. During the early stages of a contract, where the outcome of the contract cannot be estimated reliably contract revenue is recognized only to the extent of costs incurred. The early stage of a contract shall not extend beyond 25 % of the stage of completion. Both IndAS-11, AS-7 & ICDS contain revenue recognition criteria for early stage of contract but additionally the threshold limit of 25% for judgment of early stage of completion which is contain in ICDS will have a greater impact on computation. Further, unlike INDAS-11 & AS-7, ICDS did not provide for recognition of losses immediately on expected losses on contracts. Hence, as on 31-03-2015 if entity booked expected losses on contract as per AS-7 then entire loss will be disallowed and allowed on percentage completion method basis.
c. Effects of changes in foreign exchange rates: ICDS-VI: Clause No:9(c): exchange differences on translation of non-integral foreign operations i.e. all resulting exchange differences shall be recognized as income or as expenses in that previous year.AS-11 stipulates that exchange differences on translation of non-integral foreign operations should be recognition in the Foreign Currency Translation Reserve. But ICDS provide for charging to Profit & Loss.
d. Effects of changes in foreign exchange rates: ICDS-VI: ClauseNo: 5 (i) envisage recognition of exchange difference arising on settlement of monetary items. Exchange Difference in respect of monetary items, exchange differences arising on the settlement thereof or on conversion thereof at last day of the previous year shall be recognized as income or as expense in that previous year. However, Similar provision also contained in IndAS-21 but as per para-46A of AS-11 of accounting Standards rule,2006 :Exchange differences arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, can be added to or deducted from the cost of the asset and shall be depreciated over the balance life of the asset, and in other cases, can be accumulated in a ‘‘Foreign Currency Monetary Item Translation Difference Account” in the enterprise’s financial statements and amortized over the balance period of such long term asset or liability, by recognition as income or expense in each of such periods. From the above it is clearly understood that company having balance in FCMITD account will now required to charge to Profit & Loss for the purpose of computation of income by virtue of Transitional provision contained in ICDS.
e. Government Grants: ICDS-VII: Clause no5 envisage treatment of Government Grant i.e. Where the Government grant relates to a depreciable fixed asset or assets of a person, the grant shall be deducted from the actual cost of the asset or assets concerned or from the written down value of block of assets to which concerned asset or assets belonged to. Where ICDS emphasize on deduction of grant from the original cost of the asset, IndAS-20 prescribed for setting of grant as deferred income and transferred to Statement of Profit & Loss on a systematic basis. Further, AS-12 provide for postponement of government grant beyond the date of actual receipt where condition attached to the grant are not fulfilled. Whereas, as per ICDS such postponement is not possible.

f. Borrowing Cost: ICDS-IX: the definition of borrowing cost as per ICDS does not provide for exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. The same provision contained in para 4(e) of AS-16 and para 6(e) of INDAS-23. Entity having borrowing cost by virtue of above mentioned AS& Ind AS will not be entitled to claim borrowing cost under ICDS while computation of income. Further, the formula given for borrowing cost eligible for capitalization in case of general borrowing is different from the method prescribed in IndAS-23& AS-16.Conclusion-By virtue of applicability of ICDS w.e.f. 01-04-2015 entity is now under compulsion to start calculate its taxable income under the head “ Profit and gains of business or profession” or “ Income from other sources” which will in turn also applicable for calculation of advance tax for AY:2016-1

7. From FY:2015-16 onwards tax auditors of entities need to be more cautious while checking income tax calculation.

The current financial year is going to end on 31 March 2016. For Tax related purposes  this date is important. One such is filing pending income-tax returns (ITR). Under the income tax law, if you don’t file your ITR within the deadline (usually 31 July of the assessment year, or AY), you can still file it within two years from the end of the relevant FY. This means that you can file returns for FY14 till 31 March 2016.

So, if you have not filed your returns for FY14 yet, do so before the end of March this year, or else you would have missed the last opportunity.

While there is still some time available to you to file an older ITR, you may not be able to avail some benefits that would have been available to you if the return was filed before the deadline. Apart from that, you might have to pay a penalty or late fee to file your return now. Let’s look at the benefits you lose and what penalty and fees you might have to pay.

WHAT YOU DON’T GET

When you file a belated return, you are not allowed to carry forward certain losses.

Had you filed your ITR on time, you could have carried forward certain losses for the next eight years and got it adjusted against gains during these years. Besides that, if you file late, you can’t revise the filed ITR should you discover an error in it. The window to revise a filed ITR is open only if you file it by the deadline of the relevant year.

LOSSES AND PENALTY

If there is tax due after deducting advance tax, tax deducted at source (TDS) and self assessment tax, then, according to section 234A of the Income Tax Act, 1961, interest will be applicable at the rate of 1% per month up to the date of filing of the return.

Besides that, interest is also applicable under section 234B or 234C of the Act, related to advance tax.

However, these interests are applicable only if there is any tax due on your income for that year.

Filing ITR also makes it possible to claim refund of excess tax paid on the income during the year. You are also entitled to get a refund along with interest under section 244A of the Act. However, in case of a belated return, you may lose interest on the refund, as a delay in filing is because of you.

You may also be charged a penalty of Rs.5,000 under section 271F of the Act, if you file your ITR after the expiry of the relevant AY or one year from the end of the relevant FY.

However, you are not required to pay this penalty while filing the belated return. Levy of this penalty is at the discretion of the accessing officer (AO), and you need to pay it only when you get a notice or letter about the same from the AO. In extreme cases, where the tax payer willfully delays filing returns, there is a provision for higher penalty and also imprisonment under section 276CC of the Act.

So, if you have not filed your return for FY14, better do it before 31 March 2016.

Credits: Ashwin Kumar Sharma

Page 1 of 46 Indian Railway Budget Speech 2016-17 Speech of Shri Suresh Prabhakar Prabhu introducing the Railway Budget for 2016-17 on 25th of February, 2016 Madam Speaker, 1. I rise to present before this August House the Statement of Estimated Receipts and Expenditure for 2016-17 for Indian Railways.

2. Let me begin with a couple of personal experiences. As the Railway Minister of India, I visit a number of places and meet a large number of people from all walks of life. On one visit to Mumbai Central station, I was pleasantly surprised to find a group of women engaged in cleaning. The station looked very clean. On seeing me, a lady came and thanked me for allowing her NGO to adopt the station. For the last five months she had been volunteering a day every month at the station. She said that she felt very happy to be contributing her little bit to this national cause.

3. In another incident, Alok Tiwari, an inspector in the Railway Protection Force, recently deputed to the social media cell of the Railway Board, shared his sentiments. He is responsible for taking action on passengers’ requests for help on social media. He said that for the first time in his professional career, he has realised how his little actions were making a huge difference in passengers’ lives. He felt enthused and proud to be part of Indian Railways.

4. Madam Speaker, it is people like these who are the soul of India and Indian Railways, and that is why this is not my Budget alone. This is a Budget which reflects the aspirations of each and every Page 2 of 46 member of the Railway family; a Budget that reflects the aspirations of the common citizens of India who have not only been writing to me, interacting with me on social media but also meeting me in large numbers to share their thoughts. This is a Budget that has been fashioned by a creative partnership: with ideas from my colleagues in Parliament, industry associations, commuter associations, media and practically all sections of the society. I would like to thank each one of you. But above all, this Budget owes its inspiration to the vision and leadership of our Prime Minister Shri Narendra Modi Ji. He had once said, “My vision is to make railways the backbone of India's progress and economic development.” We are making all out efforts to translate his vision into reality. Our core objective is to improve the quality of customer experience at the individual level, become an engine of employment generation and economic growth at the national level and convert India’s largest institution into a template for transformation. “ This budget will document a journey of transformation, the journey of our nation, by touching millions of human lives daily. Overcoming the challenges – our strategy

5. These are challenging times, may be one of the toughest. We are faced with two headwinds, entirely beyond our control; tepid growth of our economy’s core sectors due to international slowdown and the looming impact of the 7th Pay Commission and increased productivity bonus payouts. Further, historically declining modal share of Indian Railways, which dropped from Page 3 of 46 62% in 1980 to 36% in 2012, is continuing to exert pressure on the institution. At this moment, I am reminded of our former Prime Minister, Shri Atal Bihari Vajpayee’s few lines:

6. IR as an organization has stood the test of time due to the sheer grit and commitment of its employees. However, these challenging times require overhaul of our work culture and ethos cemented over years. Last year, I had unveiled a medium term vision for the Railways which set us on this transformational journey for which we now we need to Reorganise, Restructure and Rejuvenate this institution. We need to bring in a new approach, a new way of working -

7. The three pillars of the strategy that I am laying out today reflect this new thought process. A) Nav Arjan – New revenues: IR typically has focused on increasing revenues through tariff hikes. We want to change that and challenge our conventional thinking on freight policies to win back our share in the transportation sector. We will exploit new sources of revenue so that every asset, tangible or non-tangible, gets optimally monetized. B) Nav Manak – New norms. Each rupee that gets expensed will be re-examined to ensure optimal productivity. We will take a ‘zerobased budgeting’ approach to the financials of the ensuing year. We will improve our efficiency yardsticks and procurement practices to bring them in line with international best practices. We will continue to innovate and optimise our outgo on each activity.

CLICK HERE / CLICK HERE TO DOWNLOAD DEAILED RAILWAY BUDGET 2016 SPEECH IN PDF TEXT 

Synopsis of Income Tax (22nd) Amendment Rules, 2015
[Personal & Private Circulation bearing no opinion or advice]
According to Rule 114B read with Section 139A, every person shall quote his PAN in
transactions specified below:
Date of Effect: 01.01.2016

S. No. Nature of Transactions Value of Transactions
1 Sale or purchase of a motor vehicle or vehicle which requires registration by
a registering authority other than two wheeled vehicles.
All Transactions.

2 Opening an account other than a time-deposit and a Basic Savings Bank
Deposit Account with a banking company or a co-operative bank.
All Transactions.

3 Making an application for issue of Debit or Credit Cards. All Transactions.

4 Opening of a DMAT Account. All Transactions.

5 Payment to a Hotel or Restaurant against a single bill or a single payment for
multiple bills.
Payment in cash
exceeding Rs. 50,000/-.

6 Payment in connection with travel to any foreign country or payment for
purchase of any foreign currency at any one time.
Payment in cash
exceeding Rs. 50,000/-.

7 Payment to a Mutual Fund for purchase of its units. Amount exceeding Rs.
50,000/-.

8 Payment to a company or an institution for acquiring debentures or bonds
issued by it.
Amount exceeding Rs.
50,000/-.

9 Payment to the Reserve Bank of India for acquiring bonds issued by it. Amount exceeding Rs.
50,000/-.

10 Deposit with a banking company or a co-operative bank. Deposit of cash exceeding
Rs. 50,000/- in one day.

11 Purchase of bank drafts or pay orders or banker’s cheques from a banking
company or a co-operative bank.
Deposit of cash exceeding
Rs. 50,000/- in one day.

12 A time deposit with:
- a banking company or a co-operative bank;
- a Post Office;
- a Nidhi; or
- a NBFC which holds a certificate of registration to hold or accept
deposit from public.
Amount exceeding Rs.
50,000/- for a single
transaction or
aggregating to more than
Rs. 5,00,000/- during a
financial year.

13 Payment for one or more pre-paid payment instruments to a banking
company or a co-operative bank or to any other company or institution.
Payment in cash or bank
draft or pay order or
banker’s cheque of an
amount aggregating to
more than Rs. 50,000/- in
a financial year.

14 Payment as life insurance premium. Amount aggregating to
more than Rs. 50,000/- in
a financial year.

15 A contract for sale or purchase of securities (other than shares). Amount exceeding Rs. 1
Lakh per transaction.

16 Sale or purchase of shares of an Unlisted company. Amount exceeding Rs. 1
Lakh per transaction.

17 Sale or purchase of any immovable property. Amount exceeding Rs. 10
lakh.

18 Sale or purchase of goods or services of any nature other than mentioned
above.

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CLICK HERE / CLICK HERE 22nd Synopsis of Income Tax Amendment Rules, 2015

ASSESMENT OF FIRMS
Firm is an association of two or more than two persons, who came together to do a business and share profits thereof. Section 4 of the Partnership Act, 1932 defines Partnership as “relationship between persons who have agreed to share the profits of business carried on by all or any of them acting for all.”
The persons who have agreed to do business together are personally called “Partners” and collectively called a “Firm”. They are abiding by a deed called “Partnership Deed”. A Partnership Deed for partnership is same as Articles of Association, Trust Deed for companies and Trust respectively.
From Assessment Year 1993-94 the Partnership Firms are classified as;
1. Partnership Firms Assessed as Such (PFAS)
2. Partnership Firms Assessed as an Association of Person (PFAOP)
Scheme of Taxation of Firms;
1. The firm is taxed as a separate entity i.e. separate from its partners. No matter whether the firm is registered or not.
2. The definition of firm includes a Limited Liability Partnership and LLP is treated same as firm.
3. The share of partners in the income of the firm is exempted, while computing his individual income or share of partners in the firm is exempted in his hand.
4. Salary, Bonus, Commission or remuneration (by whatever name called) paid /payable to partners is allowed as deduction to the firm and same will be taxable in the hand of partners. These expenses are allowed as deduction subject to certain restriction under the Income Tax Act, 1961.
5. The interest to partners paid by firm is deductible subject to maximum rate of interest @12% pa. The amount is taxable in the hand of partners.
6. The firm is taxed @30.9% or 33.99% (subject to net income of firm is Rs. 1 Crore or exceeds Rs. 1 Crore).

CONDITIONS TO BE FULFILLED BY A FIRM TO BE ASSESSED AS SUCH (PFAS);
Section 184; of the Income Tax Act, 1961 governs the taxation and assessment of Firm. A firm has to satisfy these conditions to be assessed as a firm;
Section 184(1) (i):  The Firm should be evidenced by an instrument called “Partnership Deed” and;
a. It should be in writing;
b. It should not be by conduct or oral;
c. The deed may contains following clauses; Name of the Firm, Place of Business, Nature of Business, Date of Commencemence of Business, Duration of Partnership(if any), Capital Clause, Profit Sharing Ratio, Remuneration payable to partners, Interest Payable to partners, Arbitration Clause( if any), drawing, power to operate bank account, method of calculation of profit and keeping of books of accounts, management of business, duties of partners, valuation of goodwill , increase of capital of partners, removal or inclusion of partners and some other clauses as agreed among the partners.
Note: Individual Share of partners must be specified in the Partnership Deed. The loss will be shared by partners according to their profit sharing ratios. But in case of a minor, how the loss of the firm will be shared among major partners should be clearly specified in the Deed.
A certified true copy of the Partnership Deed will be submitted with the first return of the Firm. The Deed would be signed by all partners (major partners). The deed may be submitted by Authorised Representative along with their Authorisation Letter.
In case of any change in the constitution of the firm or profit sharing ratio, remuneration/payment of interest to partners etc., a revised copy of the Deed should be submitted with the return.

CLAIMING DEDUCTION OF REMUNERATION PAID TO PARTNERS;
Section 40(b); claiming deduction of remuneration to partners;
1. Remuneration should be payable to working partners;
2. Remuneration must be authorised by Partnership deed;
3. Remuneration should not pertain to period prior to Partnership Deed and
4. Remuneration should not exceed permissible limited
Note: above conditions are applicable in all cases if remuneration paid in representative capacity also.
Working Partner; Section 40(b) explanation defines as;
a. An individual , who is a partner of the firm;
b. Such an individual is actively engaged in conducting the affairs of the business/profession of the firm.

Note: to claim deduction of remuneration, it should be sanctioned, approved or directed by Partnership Deed or Partnership Deed should provide power for payment of remuneration to working partners
Circular No. 739, dated March 25, 1996, CBDT lays down two conditions;
a. Eighter the amount payable to the partners should be specified or
b. The manner of quantifying the remuneration should be specified in the Partnership deed.
Sood Brij & Associates V CIT[2011] 203 Taxman 188 Delhi; it was decided that Quantum of remuneration or the manner of computation of quantum of remuneration should be stated in the Partnership Deed  and should not be left undetermined , undecided or to be determined or decided on future date.
Maximum Amount as Permitted by Section 40(b); the amount actually deductible is;
a. The remuneration amount permitted by section 40(b) or
b. The amount of remuneration paid or payable to partners as debited to profit and loss account, whichever is lower.

Book Profit	Amount deductible under Section 40(b)
·          If book profit is negative	Rs. 1,50,000
·         In case of profit -on first 3 lakhs of book profit -on balance of book profit	Rs. 1,50,000 or 90% of book profit whichever is more 60% of book profit

Very Useful All Excel Tricks  Don't miss 

What Is In The Dictionary ?
This workbook contains 157 worksheets, each explaining the purpose and usage of
particular Excel functions.

There are also a number of sample worksheets which are simple models of common
applications, such as Timesheet and Date Calculations.

Formatting
Each worksheet uses the same type of formatting to indicate the various types of entry.

North Text headings are shown in grey.
100
100 Data is shown as purple text on a yellow background.
100
300 The results of Formula are shown as blue on yellow.

=SUM(C13:C15) The formula used in the calulations is shown as blue text.

The Arial font is used exclusivley throughout the workbook and should display correctly
with any installation of Windows.

Each sheet has been designed to be as simple as possible, with no fancy macros to
accomplish the desrired result.

Printing
Each worksheet is set to print on to A4 portrait.
The printouts will have the column headings of A,B,C... and the row numbers 1,2,3... which
will assist with the reading of the formula.
The ideal printer would be a laser set at 600dpi.
If you are using a dot matrix or inkjet, it may be worth switching off the colours before printing,
as these will print as dark grey. (See the sheet dealing with Colour settings).

Protection
Each sheet is unprotected so that you will be able to change values and experiment
with the calculations.

Macros
There are only a few very simple macros which are used by the various buttons to
naviagte through the sheets. These have been written very simply, and do not make any attempt
to change your current Toolbars and Menus.

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Key Components of GST Return: GSTR-3
A. Monthly GST Return for the Taxpayers (GSTR-3) – GSTR-3 is required to be filed by all taxpayers, except the compounding taxpayers and Input Service Distributors, by 20th of the succeeding month. The return would be permitted to be filed both on online and offline mode. Besides the basic details like Name and Address of the taxpayer along with GSTIN & period to which the return pertains, the GSTR-3 return would capture following information:

1. Turnover Details including Gross Turnover, Export Turnover, Exempted Domestic Turnover, Nil Rated Domestic Turnover, Non GST Turnover and Net Taxable Turnover.

2. Final aggregate level outward and inward supply information will be auto populated from GSTR-1 and GSTR-2 returns of the taxpayer.

3. Separate tables for calculating tax amounts on outward and inward supplies based on the information contained in various tables in the GSTR-3 return.

4. A separate table for capturing the TDS credit received and credited to the cash ledger of the deductee.

5. Tax liability under CGST, SGST, IGST and Additional Tax.

6. Details regarding revision of invoices relating to outward and inward supplies, as per details provided in GSTR-1 & GSTR-2 returns.

7. Details of other liabilities like Interest, Penalty, Fee, etc. should be submitted by the taxpayers.


8. Information about ITC ledger, Cash ledger and Liability ledger will be maintained electronically on the dashboard of taxpayer by GSTN and would be updated in real time on an activity in connection with these ledgers by the taxpayer. Details in these ledgers will get auto populated from previous tax period return (irrespective of mode of filing return i.e. online / offline utility).

9. Details of ITC utilized against tax liability of CGST, SGST and IGST on supplies of goods and services.

10. Net tax payable under CGST, SGST, IGST and Additional Tax.

11. Details of the payment of tax under various tax heads of CGST, SGST, IGST and Additional Tax separately would be populated from the debit entry in Credit/Cash ledger.
[GST Law may have provision for maintaining four head wise account for CGST, SGST, IGST and Additional tax and at associated minor heads for interest, penalty, fee and others.]

12. Excess payment, if any, will be carried forward to the next return period. The taxpayer will have the option of claiming refund of excess payment through the return for which appropriate field will be provided in the return form. The return form would display all bank account numbers mentioned in the registration, out of which one will be selected by the taxpayer to which the refund will be credited.

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CST Return Form VI In Excel Format / CST Return Form 6 In Excel Format

FORM CST VI
Form of return under Rule.14 A (1) of the Central Sales Tax (Andhra Pradesh) Rules, 1957

Return for the Period from       to

Registration No (TIN)

Name of the delaer

1 Turnover of Inter State Taxable Sales including Cost of freight, delivery or Rs.
installation and Central Sales Tax collections

2 Deductions:
Cost of freight, delivery or installation when such cost separately Rs.
charged as per section 2 (h) of the Central Sales Tax Act, 1956

(i) CST Collections as per section 8A of the Central Sales Tax Act, 1956 Rs.

(ii) Total Rs.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Significant Notifications and Circulars of central excise issued between 1st May, 2015 and 31st October, 2015


Central Excise 

1. No refund of CENVAT credit under rule 5B to service providers providing manpower supply/ security services

Rule 5B of the CENVAT Credit Rules, 2004 provides that service providers, rendering notified reverse charge services, being unable to utilise the CENVAT credit availed on inputs and input services for payment of service tax on such output services, shall be allowed refund of such un-utilised CENVAT credit. In this regard, earlier following partial reverse charge services were notified:

(i) renting of a motor vehicle designed to carry passengers on non-abated value, to any person who is not engaged in a similar business;
(ii) supply of manpower for any purpose or security services; or (iii)
(iii) service portion in the execution of a works contract Since with effect from 01.04.2015, service tax with respect to supply of manpower for any purpose or security services is payable on the basis full reverse charge, service providers of said services will no longer be eligible for refund of CENVAT credit availed on inputs and input services for payment of service tax on such output services. Further, application in Form A for claiming refund has also been suitably modified. The aforesaid amendment is effective from April 01, 2015. [Notification No. 15/2015 CE (NT) dated 19.05.2015]

2. Reversal of credit under rule 6 not required in case of ethanol produced from molasses generated from cane crushed in the sugar season 2015-16 [Clause (ix) inserted to rule 6(6) of the CENVAT Credit Rules, 2004]

The provisions of sub-rules (1), (2), (3) and (4) of rule 6 would not apply to ethanol produced from molasses generated from cane crushed in the sugar season 2015-16 i.e. 1st October, 2015 onwards, for supply to the public sector oil marketing companies, namely, Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd. or Bharat Petroleum Corporation Ltd., for the purposes of blending with petrol, under Notification No.12/2012 CE dated 17.03.2012.

In case of such removal, though ethanol is removed without payment of duty, CENVAT credit on inputs/capital goods/input services used in the manufacture of ethanol can be availed. Further, where common inputs/input services are used to manufacture ethanol and other dutiable final product, reversal of credit or payment of amount on removal of ethanol will not be required.

[Notification No. 21/2015 CE (NT) dated 07.10.2015]

3. Output service providers allowed to utilize credit of education cess (EC) and secondary and higher education cess (SHEC) for payment of service tax on any output service [Sixth, seventh and eighth provisos inserted to rule 3(7)(b) of the CENVAT Credit Rules, 2004]

Prior to 01.03.2015, education cess (EC) and secondary and higher education cess (SHEC) paid on excisable goods could be availed as CENVAT credit. Further, EC and SHEC paid on taxable services could also be availed as CENVAT credit till 31.05.2015. Credit of EC on excisable goods or taxable services could not be utilised for payment of any other duty except EC payable on excisable goods or taxable services. Similarly, credit of SHEC on excisable goods or taxable services could not be utilised for payment of any other duty except SHEC payable on excisable goods or taxable services. However, pursuant to EC and SHEC leviable on all taxable services ceasing to have effect (with effect from 01.06.2015), an output service provider has been allowed to utilise the following credits of EC and SHEC for the payment of service tax on any output service:

(i) credit of EC and SHEC paid on inputs/ capital goods received in the premises of the output service provider on or after 01.06.2015;

(ii) credit of balance 50% EC and SHEC paid on capital goods received in the premises of the output service provider in the financial year 2014-15; and


(iii) credit of EC and SHEC paid on input service in respect of which the invoice, bill, challan or Service Tax Certificate for Transportation of Goods by Rail (referred to in rule 9), as the case may be, is received by the output service provider on/ after 01.06.2015.

[Notification No. 22/2015 CE (NT) dated 29.10.2015]

4. Centralised registration allowed to manufacturers of aluminium roofing panels subject to fulfillment of specified conditions

Every manufacturing unit engaged in the manufacture of aluminium roofing panels* has been exempted from obtaining the central excise registration, subject to fulfillment of the following conditions:

(i) such roofing panels are consumed at the site of manufacture for execution of the project and
(ii) manufacturer of such goods has a centralised billing or accounting system in respect of such goods manufactured by different manufacturing units and he opts for registering only the premises or office from where such centralised billing or accounting is done.

*falling under tariff item 7610 90 10 of the First Schedule to the Central Excise Tariff Act, 1985

[Notification No. 17/2015 CE (NT) dated 08.06.2015]

5. Conditions, safeguards and procedure for preserving digitally signed records and issuing digitally signed invoices prescribed

Rule 10(4) and rule 11(8) of the Central Excise Rules, 2002 provide for authentication of every page of excise records preserved in electronic form and of invoices respectively, by means of digital signatures. Further, rule 10(5) and rule 11(9) have authorized CBEC to notify the conditions, safeguards and procedure to be followed by an assessee for preserving digitally signed records and issuing digitally signed invoices.

In this regard, the following conditions, safeguards and procedure have been prescribed vide Notification No. 18/2015 CE (NT) dated 06.07.2015:

(a) Every assessee proposing to use digital signature shall use Class 2* or Class 3** Digital Signature Certificate duly issued by the Certifying Authority in India. *Class 2 Certificate: These certificates are issued for both business personnel and private individuals use and are available for download after verifying a person’s identity against a trusted and pre-verified database. **Class 3 Certificate: This certificate is issued to individuals as well as organizations. Since these are high assurance certificates, primarily intended for e-commerce applications, they shall be issued to individuals only on their personal (physical) appearance before the Certifying Authorities.
(b) Every assessee proposing to use digital signatures shall intimate the following details to the jurisdictional Deputy/ Assistant Commissioner of Central Excise, at least 15 days in advance:

• name, e-mail id, office address and designation of the person authorised to use the digital signature certificate;
• name of the Certifying Authority;
• date of issue of digital certificate and validity of the digital signature with a copy of the certificate issued by the Certifying Authority along with the complete address of the said Authority

However, in case of any change in aforesaid details, complete details shall be submitted afresh within 15 days of such change. In case of assessees already using digital signature, aforesaid details should be intimated within 15 days of issue of this notification.

(c) Every assessee who opts to maintain records in electronic form:
(i) and has more than one factory/ service tax registration shall maintain separate electronic records for each factory/ service tax registration.
(ii) shall on request (in a letter or e-mail) by a Central Excise Officer, produce the specified records in electronic form and invoices through e-mail or on a specified storage device in an electronically readable format for verification of the authenticity of the document.
(iii) shall ensure that appropriate backup of records in electronic form is maintained and preserved for a period of 5 years immediately after the financial year to which such records pertain.

(d) A Central Excise Officer, during an enquiry, investigation or audit, may direct an assessee to furnish printouts of the records in electronic form and invoices and may resume printouts of such records and invoices after verifying the correctness of the same in electronic format; and after the print outs of such records in electronic form have been signed by the assessee or any other person authorised by the assessee in this regard, if so requested by such Central Excise Officer.


Note: The above conditions will also apply in case of preservation of service tax records in electronic form and authentication of service tax invoices by digital signatures. Further, all importers and exporters using services of Customs Brokers for formalities under Customs Act, 1962, shipping lines and air lines have also been required to file customs documents under digital signature certificates mandatorily with effect from 01.01.2016. The importers/ exporters desirous of filing Bill of Entry or Shipping Bill individually may however have the option of filing declarations/ documents without using digital signature [Circular No. 26/2015 Cus. dated 23.10.2015].

6. Exemption from sealing in a package/ container to export of bulk cargo [for e.g. coal, iron-ore, alumina concentrate, heavy machinery etc.] which is difficult to seal in packages/container

The conditions and procedure relating to export (under bond) without payment of duty to all countries except Bhutan are contained in Notification No. 42/2001 CE (NT) dated 26.06.2001 issued under rule 19 of the Central Excise Rules, 2002. The said notification stipulates that before clearing the export consignments from the factory/ warehouse/ any other approved premises, goods needs to be sealed-either by Central Excise Officer after examination of such goods or by the exporter himself under self-sealing and self certification. However, bulk cargo e.g. coal, iron-ore, alumina concentrate, heavy machinery etc. are difficult to seal in packages or container. Consequently, Notification No. 23 /2015 CE (NT) dated 30.10.2015 has been issued which provides that where the nature of goods is such that the goods cannot be sealed in a package or a container such as coal or ore, etc., exemption from sealing of package or container may be granted by the Principal Chief Commissioner/ Chief Commissioner of Central Excise subject to safeguard as may be specified by him in the permission.

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