Author: CA Tarannum Khatri

Dividend distribution tax (sec115-O and 115R)-new calculation

If you have invested in the shares of company, you may be aware of dividend distribution tax.   What is dividend distribution tax? When domestic company distributes profit by way of dividend, the company has to pay additional tax via dividend distribution tax. This provision is applicable to mutual fund companies too. Company is not paying dividend from own income but deducting it from dividend and distributing remaining amount to shareholders. Necessity of DDT: We all know that dividend is income and it is taxable. Instead of collecting tax on dividend from each person, the government has introduced section 115O. As per section 115O, company deducts tax from dividend income while distributing dividend income and pays remaining amount to shareholders. DDT vs TDS: DDT is not tax deducted at source but it is like advance tax which shareholders deposit through company.   Does dividend income tax again in the hands of shareholder? No, dividend received by shareholders is exempt as it is already taxed before distribution.   Rate of dividend distribution tax: For domestic company:15% (effective rate is 16.995% including surcharge and education cess) Note: new rate 19.994% from 1st october, 2014. Mutual fund to individual and HUF: 28.325% (effective rate) The rates are effective rates for distribution of dividend. It will be calculated on dividend paid amount.     Calculation of dividend distribution tax: Before 1/10/14: Distribution of...

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How to file rectification request under income tax act?

  Hi, I hope you complete work of income tax return filling in july. Still if you find the mistake, you can file revised return up to 31st March, 2016. But remember that belated return can’t be revised. Belated return is return which has been filed after due date of return filling. It is 31st july for non audited party and non company assessee. So what to do when you have filed belated return and found mistake in it and received CPC demand order? The answer is file rectification request to income tax department.   Rectification request can be filed in two ways. First: File online rectification request: You have to file online rectification request if you file online income tax return. Second: File rectification request manually: If you file income tax return manually, file rectification request manually. What mistakes can you correct from rectification? Rectification request is limited to error in arithmetic calculation or mistake apparent from record. Mistake apparent from record can be mistake of law or fact but not be debatable issue of interpretations. Rectification request can be filled only to amend intimation or deemed intimation u/s 143(1). Time Limit: Time limit for filling rectification request is 4 years from the end of financial year in which the order was passed. It means that if order is passed in july 2014, you can file rectification up...

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Analysis of pass percentage of CA Final Exams-May2013, Nov 2013, May 2014

Result of CA final exam was declared yesterday. Congratulations to whom who have passed. The students who have not crossed ,don’t loose hope. Try again and do your best. As we all know, CA exam is one of the toughest exams. But the sad things is that ICAI is not maintaining result percentage criteria for many years. When result is declared, we ask each other about pass percentage. But when we go for interview, interviewer does not ask us about pass percentage. You are CA and that’s enough. Of course, attempts are counted. But in some cases, when result percentage is high, many students are crossed out and when result percentage is low, eligible students who are more brilliant than former can’t cross the exam. So it all depends on luck. As we says always. So according to me, ICAI should try to maintain average rate of pass percentage. So that, eligible will not suffer. In this article, I have tried to analysis previous three exams results of CA final, from May 2013 to May 2014. May 2013   Group Attended Passed Passing % Both 27556 2764 10.03% Group 1 45822 6319 13.79% Group 2 50354 9389 18.65%   Nov 2013 (Lowest Result in last 23 Years) Group Attended Passed Passing % Both 32536 1013 3.11% Group 1 51728 2932 5.67% Group 2 54786 4026 7.35%     May 2014...

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Form 26AS – detailed analysis

Form 26AS is introduced by income tax department and tdscpcl. It is a really useful tool which not only gives you annual  tax related information, but also saves you from income tax notices.In this part, we will analysis each part of form 26AS. Form 26AS is divided in six parts: PART A: Here, we can see information about total TDS deducted by deductor during the year. Sections means in which income tax section your tds was deducted. Transaction date means when an amount was deposited or credited to your account. To get the tax credit, the status of booking...

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How to register on traces website as taxpayer

Registration procedure on traces site is bit long. Learn from this article about how to register on traces website as tax payer. Although the procedure is long,  once you are registered you can avail many facility provided by traces. You can view TDS/TCS credit, verify form 16, view refund status etc. In this article, we will see the steps to register on traces website. How to register on traces website as taxpayer: Step 1: Go to traces site. Click on register as new user< tax payer. You have to fill validation details under step 1. For it, enter your PAN number, date of birth and surname (as per pan). You have two options for entering tax deduction details. Option 1: Enter tan of deductor, type of deduction -whether it is TDS on salary, TDS on non salary or TCS. Enter the amount and month and year of deduction. You can use form 16/16A/26AS for filling details. option 2: ( easy option) I show you easy path. Make Rs. 10 payment -advance tax through https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp – challan no. 280 and make payment through net banking. enter details of it in option 2 – challan details of tax deposited by taxpayer. ( Remember that you need to register 2 or 3 days later on traces after making payment so that your challan details are updated in tin. )  Enter A.Y. of...

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