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New PAN application form 49A, 49AA Notified: Documents required to apply PAN card Modified

CBDT (Central Board of Direct Taxes) has amended the rules pertaining to application of new pan card issued in its notification no. 96 dated December, 23 2013 regarding new format of PAN application; annexure A, B and C  for form 49A and annexure 1 for form 49AA. There is a new list of documents required to apply new pan or amend pan card has been notified . Aadhar card has also been added as ID as well as residential address proof for PAN application purpose.

Download full notification of CBDT 

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Introduction of Section 87A – Income Tax Rebate

A new section 87A by Finance bill 2013 has been introduced for Income Tax Deduction of Rs. 2000/- for Assessment Year 2014-15. This rebate can be availed Tax payer/Assessee under section 87A. It is necessary to read clauses 19 and 20 of the bill to make it more clear-

Clauses 19 and 20 of the Bill seek to amend section 87 and insert a new section 87A in the Income-tax Act relating to rebate of income-tax in case of certain individuals.

The proposed new section 87A seeks to provide that an assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under Chapter VIII of the Income-tax Act) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.

Consequential amendments have been proposed in section 87, so as to provide reference to proposed new section 87A.

Note:

  • These amendments will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.
  • Rebate is available only to individuals
  • No rebate to Non Resident.
  • If the total tax payable is less than Rs. 2000/-, rebate is restricted to “total tax payable”.
  • Rebate benefit is not applicable to a super senior citizen, since he is already fully exempted up to Rs. 5 lakh.
  • Above amendment does not mean that basic Exemption Limit has been raised from Rs. 2,00,000/- to Rs. 2,20,000/-.
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Deferred Tax Liability on Special Reserve created u/s. 36(1)(vii) of the Income Tax Act, 1961

The Income Tax Department has issued a circular regarding ‘Deferred Tax Liability’ on special reserves created section 36(1)(vii) of the Income Tax Act which is as under:

DEFERRED TAX LIABILITY ON SPECIAL RESERVE CREATED UNDER SECTION 36(1)(viii) OF THE INCOME TAX ACT, 1961

CIRCULAR DBOD. NO.BP.BC.77/21.04.018/2013-14, DATED 20-12-2013

Please refer to our mailbox clarification dated November 6, 2009 with respect to the ‘Special Reserve’ created by banks under Section 36(1) (viii) of Income Tax Act, 1961 (hereinafter referred to as ‘Special Reserve’), in terms of which, only the net amount of such Special Reserve (net of tax payable) should be taken into account for the purpose of computation of Tier-I capital.

2. In this context, it has been observed that some banks are not creating deferred tax liability (DTL) on Special Reserve as per Accounting Standard 22: ‘Accounting for taxes on Income’ (AS 22) on the grounds that they do not intend to withdraw from such Reserve in the future. In many cases banks have formalised such intent by having resolutions passed by their Boards or Committees to this effect.

3. The matter regarding creation of DTL on Special Reserve has been examined and banks are advised that, as a matter of prudence, DTL should be created on Special Reserve.

4. For this purpose, banks may take the following course of action:
(a) If the expenditure due to the creation of DTL on Special Reserve as at March 31, 2013 has not been fully charged to the Profit and Loss account, banks may adjust the same directly from Reserves. The amount so adjusted may be appropriately disclosed in the Notes to Accounts of the financial statements for the financial year 2013-14.
(b) DTL for amounts transferred to Special Reserve from the year ending March 31, 2014 onwards should be charged to the Profit and Loss Account of that year.

5. In view of the requirement to create DTL on Special Reserve, banks may reckon the entire Special Reserve for the purpose of computing Tier-I Capital.

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Due date for payment of Advance tax extended to 17th December 2013

The tax payers are required to pay their december installment of Advance tax on or before 15th December, 2013. The taxpayers can make payments in the designated branches of the authorized banks, electronically or physically, as per law. The banks are closed on 15th December, 2013, being a Sunday. Therefore, to facilitate payment of this installment of Advance tax for the FY 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of Advance Tax, from 15th December, 2013 to 17th December, 2013. Taxpayers, therefore, can now pay their advance tax installment by 17th December, 2013 without entailing any consequential interest for deferment.

Order U/s 119 (2)(a) of the I.T. Act, 1961 – Extension of last date of payment of the December Quarter Installment of Advance Tax for the F.Y. 2013-14 – December 2013

F.No.385/8/2013-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, IT-Budget Division,New Delhi

Dated: December 13, 2013

Order under Section 119(2)(a) of the Income-tax Act, 1961

In exercise of power conferred under sec 119(2)(a) of the Income Tax Act, 1961, the Central Board of Direct Taxes has decided to extend the last date of payment of the December Quarter Installment of Advance Tax for the Financial year 2013-14, from 15th December 2013 to 17th December 2013 for all the assessees, Corporate and other than Corporates.

(Sandeep Singh)
Under Secretary to the Government of India


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