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Procedure For E-filling of Income Tax Return By Palak Aggarwal

As per Section 139(1) of Income Tax Act 1961, if the income of any person being an Individual, HUF, AOP or BOI exceeds the maximum amount not chargeable to tax without giving the effect of section 10A/10B or chapter VI A then he/she shall be required to file income tax return within the time specified.

For the AY 2013-14, the last dates for filling income tax return are as follows:-
Assesses whose accounts are required to be audited-30th Sept, 2013
Other Assesses- 31st July, 2013
Company required to furnish report u/s.92E- 30th Nov, 2013
 
However Belated returns can be filed upto 31st March 2014 in case of other Assesses.

Income Tax e-filling can be done through the website of Income Tax Department.

Through this article I am sharing with you the procedure to E-File your income tax return using excel utility in just 10 simple steps.

Here are those steps:-

1. Register on e-filling website (https://incometaxindiaefiling.gov.in/) using your PAN.PAN will be your user-id which will be used in future to check the filling status of your return.

2. Login to website and click on downloads section.Select the form for your type of income and download the excel utility form.

3. After having downloaded the excel utility, fill the required particulars in the excel utility and cross check the same with form 26AS/16/16A.

4. After filling the form click on ‘Calculate Tax’ Tab.It will calculate your tax automatically. Deposit yur due tax with the department and fill all the payment details in the excel utility.

5. Check your form by clicking Validate Button. After doing all this generate XML file for the purpose of e-filling.

6. After having generated XML file submit your return with the department.Select the ‘Submit return’ from the relevant options on left panel of the website.

7. Browse to select XML file and uplaod the same.

8. After uploading Acknowledgement (ITR-V) will be genearated. It will also be sent to your e-mail id.

9. In case you are using Digital signatures the process is completed.
In other case, take the print out of ITR-V which should be signed by the tax payer.Send this acknowledgement within 120 days by ordinary post or speed post only to Income Tax Department, Post Bag No.1, Electronic city Post office-Bangaluru-560100.

10. Income Tax Department will send Acknowledgement within 15 days to your e-mail id.

Inspiring Success Stories of CA Students By Palak Aggarwal


Failure is the highway to success. Tom Watson said, "If you want to succeed, double your failure rate." If you study history, you will find that all stories of success are also stories of great failures. But people don't see the failures. They only see one side of the picture and they say that person got lucky:"He must have been at the right place at the right time."

There is a general opinion that it is very difficult to pass Chartered Accountancy (C.A.) examination conducted by Institute of Chartered Accountants of India. Few students also discontinue the course after finding it very difficult to pass the examination. Failure is the stepping stone for success. Some may not realize that they are very near to the success but leaving the course.

If you take some good basic steps, then, you cannot be a failure in this Nobel course.

You need not to be a super genius to become a CA, even an average candidate with hard working can also be a CA.

It is touching to know about success stories of students who have passed CA examination after overcoming several obstacles. Let me share some inspiring stories of success of students in CA examination. These stories will inspire aspiring students to achieve similar success in the examination.

Successful people don't do great things, they only do small things in a great way.”

India’s first Visually challenged CA

Rajni Gopal is India’s first visually impaired woman to become a Chartered Accountant. Currently working with India’s leading software companies, it has taken Rajani immense grit, perseverance and patience to reach where she stands.

Several students with normal health struggle to pass the examination despite the best of professional coaching and excellent support provided by their family. It is inspiring to know that Rajani Gopal, a visually challenged girl has cleared the exam during 2002 to become India’s first visually challenged woman to pass CA examination.

She was prescribed penicillin tablets for common cold by a doctor when she was nine years old. This was given without test dosage and this resulted in an allergic reaction which in medical terminology is known as “Steven Johnson Syndrome”. Her vision started deteriorating gradually and she lost her vision in right eye by the time she completed B.Com degree course.

She found it difficult to get a job due to her disability. She thought of pursuing CA course to improve her chances for getting a job. With lot of determination she joined CA course as there is not much need to attend regular classes like other courses. She started using the screen reading software and learnt how to use computers. She got all the materials converted to soft copy and started studying in a focussed manner. After facing lot of difficulties, she successfully passed the CA examination and is now well placed in a reputed firm.

Rajani Gopal has proved that it is possible to pass the CA examination if one prepares in a focussed manner in spite of any physical handicap. When a physically challenged person passes the tough course, no excuse can be accepted from a person enjoying normal health.

Office boy who became CA

Students also blame financial problems as an excuse for not passing the CA examination after several attempts. They claim that they are not able to afford specialised coaching provided by reputed coaching institutes.

Shailesh who worked as an office boy in a private firm has cleared CA examination though he lacked financial support. Shailesh, youngest son of housemaid Nirmala and textile loom worker Arun, studied in Sarvajanik High school in Marathi medium. He lived in a 12×25 room in a slum in Limbayat with a family of five.

Shailesh, youngest son of housemaid Nirmala and textile loom worker Arun, a migrant Maharashtrian family, studied in Sarvajanik High school in Marathi medium and did BCom from IGNOU. While doing BCom he came in touch with Jay Chhaira, his tutor and employer, running the Institute of Professional Studies in Athwalines. He joined the institute as a student-cum-office-boy so that he doesn't have to put any financial burden on his father and elder brother. He joined CA course and used to study in office during his spare time. He did lose heart in between and left studies completely for two years, only to return with more vigour and cleared every exam. Ultimately he passed CA examination successfully and started his own consultancy firm. In spite of his financial difficulties he has successfully cleared CA examination.

There is no need to worry about financial difficulties and the examination can be passed by overcoming such difficulties.

Cleared CA, ICWA, CS at 23 yrs

Many students struggle to pass the CA examination even though they study only CA course exclusively.

23-year-old Pallavi Sachdeva from Delhi, cracked three exams CA (Chartered Accountancy), CA (Cost & Works Accountancy) and CS (Company Secretary). It is really a great achievement as she has cleared all three professional exams simultaneously without any difficulty. Better understanding of basic concepts and proper planning has helped Pallavi to accomplish this achievement.

Daughter of Auto driver who scored first rank

Prema Jayakumar, the 24-year-old daughter of a migrant Tamilian Jayakumar Perumal, an autorickshaw driver has topped her chartered accountancy examination by scoring 607 out of 800 marks (75.8 per cent).She secured all India First rank in her first attempt.

Prema studied in Tamil medium till Class VIII from a Tamil medium municipal school. She switched over to English medium only during ninth standard. It is really a great achievement that she could score such high marks despite difficulties faced by her.

Her brother Dhanraj aged 22 years also appeared in the CA examination and passed it in his first attempt. Dhanraj worked in a call centre to support his studies.

CA after 32 attempts

Normally students lose interest after continuous failures and discontinue the course. They tend to join some other course or take up some employment. But untiring efforts has enabled Kailash Narayan Purohit of Jodhpur to pass CA after making 32 attempts spread over a period of 20 years. He was determined to pass the examination despite repeated failures.


Tea Stall owner’s Daughter cracks CA Final Nov 2012 Exams

The girl who didn’t have fees to pay CA course fees worked on her father’s tea stall and crackes CA Final Nov 2012 exams. She proves success quotation ‘ Where Determination is Great, Nothing is Great’. She had determined a goal to be a CA and she work hard to fulfil her dream even after toughest difficulties in her life.

Confined to Wheel chair, but passed CA

Neha Bansali was confined to the wheel chair when she hurt her spine. Neha Bansali shares her experiences in her own words.

“I was born in Delhi and grew up there. I belong to a middle class family. I have a younger brother and a younger sister. When I was playing with my friends my spine received a minor injury. But because of infection the entire spine got affected. As a result I could not sit up and got confined to the wheel chair. Except my right hand I could not move any part of my body. I had to depend on others to attend to the daily ablutions. I wanted to commit suicide. The support given by my father and mother, my sister and brother kept me up, I took the +2 exam. I scored 92% in the exams. This achievement gave me confidence and encouragement. I took the chartered accountant’s final exam and stood tenth in the national ranking.

This success made me live and I grew up from then on. I, who was confined always to the wheel chair with ability to move only one hand, developed a great urge to achieve something notable. I could secure a job as a chartered accountant in a firm and became the chief accountant.”

Born with cerebral palsy, but cleared CA

Ajit Shekhawat was born with cerebral palsy and underwent treatment for two years at a Mumbai hospital at the age of five. His treatment continued in Gandhinagar later on and Ajit continued his studies and completed his graduation in commerce from Gandhinagar. He then started preparing for his CA examination at home and cleared it.

Train blast victim who passed CA

Chirag Chauhan was an average student and it was only in the tenth standard final examination that he managed a first class.

Chirag Chauhanwas among the survivors of the serial train blasts on July 11, 2006 which claimed over 180 lives. That day he had left for home early when a bomb exploded in the suburban local at Khar Road station. His spinal cord was damaged due to the explosion and some particles are still embedded in his chest and close to the trachea.

Despite his debilitating injures, he pressed on with his course and completed it on July 12, 2008. He lost his father when he was 18 and was faced with the prospect of looking after his sisters and mother, something he can proudly do now.

Chirag Chauhan, now wheel chair-bound, is a full-fledged CA working as a senior manager.

These success stories prove that it is possible to achieve success in CA examination despite physical challenges and financial hardship.


Failures who become first Rankers


Yes, its true, if you failed in this exam then don’t worry you can get rank in next examination, if you prepare hard with confidence to crack exams with a rank. Here I have given examples of peoples who were failed in their first attempt but got rank in next exams.


1. Nitin Gupta – Failed in CA Final, May 10 – Got Rank 1 in CA Final Nov ’10
2. Sujoy K. N. – Failed in CA Final, Nov ’09 & May 10, Got Rank in CA Final Nov 10
3. Sonia Rakheja – Failed in CA Final, Nov 09 & May 10, Got Rank in CA Final Nov 10

Do you consider these people failures? They succeeded in spite of problems, not in the absence of them. But to the outside world, it appears as though they just got lucky.


All success stories are stories of great failures. The only difference is that every time they failed, they bounced back. This is called failing forward, rather than backward. You learn and move forward. Learn from your failure and keep moving.


Always Remember “SUCCESS DELAYED IS NOT SUCCESS DENIED.”


Beautiful letter written by a father to his son

This is a mail I received from a friend. It is about a letter written by a father to his son and the content of the letter is very good that I thought I would share it here with all of you who are parents and/or sons and daughters...


Following is a letter to his son from a renowned Hong Kong TV broadcaster cum Child Psychologist. The words are actually applicable to all of us, young or old, children or parents.! This applies to daughters too. All parents can use this in their teachings to their children.

Dear son ,

I am writing this to you because of 3 reasons

1. Life, fortune and mishaps are unpredictable, nobody knows how long he lives. Some words are better said early.

2. I am your father, and if I don't tell you these, no one else will.

3. What is written is my own personal bitter experiences that perhaps could save you a lot of unnecessary heartaches.

Remember the following as you go through life


1. Do not bear grudge towards those who are not good to you. No one has the responsibility of treating you well, except your mother and I. To those who are good to you, you have to treasure it and be thankful, and ALSO you have to be cautious, because, everyone has a motive for every move. When a person is good to you, it does not mean he really likes you. You have to be careful, don't hastily regard him as a real friend.

2. No one is indispensable, nothing in the world that you must possess. Once you understand this idea, it would be easier for you to go through life when people around you don't want you anymore, or when you lose what/who you love most.

3.Life is short. When you waste your life today, tomorrow you would find that life is leaving you. The earlier you treasure your life, the better you enjoy life.

4.Love is but a transient feeling, and this feeling would fade with time and with one's mood. If your so called loved one leaves you, be patient, time will wash away your aches and sadness. Don't over exaggerate the beauty and sweetness of love, and don't over exaggerate the sadness of falling out of love.

5.A lot of successful people did not receive a good education, that does not mean that you can be successful by not studying hard! Whatever knowledge you gain is your weapon in life. One can go from rags to riches, but one has to start from some rags!

6.I do not expect you to financially support me when I am old, neither would I financially support your whole life. My responsibility as a supporter ends when you are grown up. After that, you decide whether you want to travel in a public transport or in your limousine, whether rich or poor.

7.You honour your words, but don't expect others to be so. You can be good to people, but don't expect people to be good to you. If you don't understand this, you would end up with unnecessary troubles.

8. I have bought lotteries for umpteen years, but I never strike any prize. That shows if you want to be rich, you have to work hard! There is no free lunch!

9. No matter how much time I have with you, let's treasure the time we have together. We do not know if we would meet again in our next life.

Your Dad

Section 115-O (1A) - Reduction in Dividend distribution Tax


Section 115-O of the Income Tax Act relates to tax on distributed profits of domestic companies. Dividend received by the shareholders referred to in section 115-O is exempt in the hands of shareholders [Section 10(34]. Section 115-O (1) of the Income Tax Act provides that every domestic company is required to pay dividend distribution tax (CDT) in addition to the Income tax on any amount declared, distributed or paid by way of dividends (whether interim or otherwise), whether out of current profits or accumulated profits @15% plus surcharge@ 5% plus education cess@ 3%.

Important Points:

1.     CDT shall be paid within 14 days from the date of

·         Distribution ; or

·         Declaration ; or

·         Payment

of any dividend whichever is the earliest.

2.       CDT is payable even if no income tax is payable.

3.       CDT is not an allowable deduction under Income Tax Act.

4.       Foreign company is not liable to pay CDT.

5.       Credit of CDT is not available to shareholder or company.

6.       As per Finance Act, 2011 the companies engaged in developing or developing, operating and maintaining or operating and maintaining Special economic Zones are liable to pay CDT if dividend is declared on or after 1st june, 2011.

 Section 115-O (1A)

Case 1: With a view to remove the cascading effect of DDT in multi-tier corporate structure, it is proposed to amend section 115-O to provide that in case any company receives, during the year, any divided from any subsidiary and such subsidiary has paid DDT as payable on such dividend, then, dividend distributed by the holding company in the same year, to that extent, shall not be subject to Dividend Distribution Tax under section 115-O of the Act.

Amendment by Finance Act, 2012
Finance Act, 2012 has amended this section. Prior to amendment, the holding company should not be a subsidiary of any other company i.e. benefit under Section 115-O(1A) was available only to ultimate holding company. However as per amendment made by Finance Act, 2012 any holding company can claim the benefit under this section in respect of dividend received from subsidiary company.

Section 115-O (1A) as amended by Finance Act, 2012 (Case 1)

-If any holding company

-receives dividend from its subsidiary

-on which the subsidiary company has paid the CDT payable on such dividend,

-then, the amount of dividend declared, distributed or paid by the holding company

-by way of dividends, whether interim or otherwise

-shall be reduced by the amount of dividend, if any,

-received from the subsidiary company during the financial year.

-Provided that the same amount of dividend shall not be taken into account for reduction more than once.

Case 2: Dividend paid to New Pension System (NPS) trust is not liable to Dividend Distribution Tax.

Eg: NPS trust invest in shares of ABC Co. and ABC Co. declares a dividend of Rs. 100 crores out of which Rs. 7 crores is payable to NPS trust then ABC Co. will pay CDT on Rs. 93 crores. Dividend received by NPS trust is exempt in its hands.

Section 115-O (1A) as amended by Finance Act, 2012 (Case 2)

-The amount of dividend

- to any person for, or on behalf of, the New Pension System Trust

- shall be reduced from the dividend referred to in section 115O (1).

Important Points:

 ·   Subsidiary company means only that subsidiary company in which parent company hold more than 50% in nominal value of equity share capital. Dividend received from other type of subsidiaries i.e., subsidiaries having Controlling Composition of Board, sub-subsidiaries, joint ventures, etc. shall qualify for availing benefit under section 115-O (1A).
·   Benefit of reduction of dividend is available on year on year basis, i.e., Dividend paid for one Financial Year can be claimed in the same Financial Year only. Carry forward of benefit is not allowed. Further, benefit can be availed irrespective of the fact that the dividend is paid for different financial year.
·    Deemed dividend u/s 2(22)(a)/(b)/(c)/(d) is also considered for taking the benefit under section 115-O.
·   Dividend on both preference shares and equity shares shall be considered.
·    Carry forward benefit is also not allowed.

This Article has been Shared by Student of ICAI Palak Aggarwal. She can be reached at aggarwal.palak2809@gmail.com






Companies Act 2013: Tough Norms for Auditors


The Union Government on Monday released draft notes for clauses of the Companies Act that replaces a six decade old legislation. Life is set to get tougher for auditors and audit firms, with the draft rules of the Companies Act proposing to not just make auditors, but even audit firms, liable for frauds. So far, chartered accountants were penalized but the new law also puts firms under the spotlight.  
In addition, the draft rules have proposed that in case of conviction, auditors will not only have to refund the remuneration received by them but also pay damages to authorities as well as individuals, who have been affected by incorrect or misleading statements in audit reports. The tighter rules for auditors, including rotation, are the result of the alleged lapses seen during the Satyam scandal.
As a result, the Companies Act has mandated rotation of auditors. The government in the draft rules has proposed that the existing audit assignments, which were taken up before the law was enacted, should also be counted, while calculating the maximum five-year term that has been prescribed. The so-called incoming auditor will not be eligible if he has been associated with the outgoing one by virtue of being part of the same network or is operating under the same brand. The draft rules have also proposed that where the company has two or more persons as joint auditors, it will have to follow the rotation policy in such a way that all the joint auditors do not complete the term in the same year.
The new rules have given some breather in terms of reporting on fraud by auditors to the Union government. Auditors are required to report material fraud within 30 days to the government. Materiality shall mean frauds happening frequently or those where the amount involved or likely to be involved is not less than five per cent of net profit or two per cent of turnover of the company for the preceding financial year. It has also introduced the concept of class-action lawsuits. For negligence in their duties, auditors are liable to pay damages to the company or any other person for losses arising from incorrect statements in the audit report.
Auditors also have to take indemnity insurance against third-party liabilities, likely to be highly expensive. Auditors fear only the larger firms will be able to afford higher insurance costs.
The Act also mandates that an audit firm and all its partners are jointly liable for any fraudulent action of even a single partner. Earlier only the partner in question had to face the consequences of negligence; with this new rule, an entire firm of auditors might have to down shutters for the errors of one partner.
The auditor is now also required to report on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
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ITR FORMS: Who can use which form??



Income Tax Department has come up with many changes with regard to filing Income Tax Return for the Assessment year 2013-14 relating to the financial year 2012-13, one of most important of those is applicability of ITR forms for various assessees. Applicability of these forms depends on tax payer’s source of income. It is thus important to know the relevance of each of these forms.
ITR-1 SAHAJ
ITR–1 Form is to be used by an Individual having income from following sources:
- Income from Salary/ Pension
- Income from One House Property (not being brought forward losses from previous years)
- Income from Other Sources (not being income from lottery or race horses

Moreover, in case any income of spouse, minor child, etc. gets clubbed with the income of the assessee, then ITR–1 can be used only if the clubbed income falls into the above income source.
Note: ITR-1 can be filed only if Exempt Income (Section 10) is less than Rs. 5,000. Else, ITR-2 needs to filed.

ITR-2

This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year includes:-

(a) Income from Salary / Pension; or

(b) Income from House Property; or

(c) Income from Capital Gains; or

(d) Income from Other Sources (including Winning from Lottery and Income from Race Horses). Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

ITR-3

This form is to be used by a person being an Individual or HUFs who is a partner in a firm whose income chargeable to income-tax under the head “Profits or gains of business or profession” should not include any income except the income stated below:
- Interest
- Salary
- Bonus
- Commission or
- Remuneration
By whatever name called, due to, or received by Individual or HUF from such firm.
In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm shall use this form only and not Form ITR-2.

ITR 4S SUGAM

It is applicable for small businessmen and professionals covered under presumptive taxation under section 44AD & 44AE of the Act is used for computation of business Income:
- Salary/Pension
- One House Property
- Other Sources
Moreover, in case any income of spouse, minor child, etc. gets clubbed with the income of the assessee, then ITR-4S can be used only if the clubbed income falls into the above income source. Also, the above income will be deemed to be computed after considering every losses, allowances, depreciation, etc.


Return in ITR-4S cannot be filed by a person who:
Is a resident Individual or a HUF (other than not ordinarily resident in India) deriving income as referred to in section 44AD or 44AE, and has:
a)Any asset (including financial interest) located outside India;
Signing authority in any account located outside India;
b) Has claimed any relief of tax under section 90, 90A or 91;
c) Has income exceeding Rs. 5,000 which is not chargeable to tax. In other words, if assessee claims exemption in respect of any income under sections 10, 10A, 10AA, etc.


ITR-4

ITR-4 Form is used by an Individual or HUF who is carrying out a proprietary business or profession and who are not filing Return under Presumptive Taxation Scheme. The following income can be included in ITR-4 form:
- Income from Salary/Pension
- Income or Losses from House property
- Income from Business Profession
- Income or Losses from Capital gains
- Income or Losses from Other Sources
Moreover, every Partnership firms, Individuals & HUF having their tax audits mandatory u/s 44AB is required to file their ITR-4 Electronically using digital signature.


ITR-5

This Form can be used a person being a firm, AOP, BOI, artificial juridical person referred to in section 2(31) (vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4) (a) or 139(4) (a) or 139(4) (b) or 139(4) (c) or 139(4) (d) shall not use this form.

ITR-6

ITR-6 can be used by a company, other than a company claiming exemption under section 11.

ITR-7

ITR 7 Form can be used by persons including companies who are required to furnish return under:
- Section 139(4A) : Filing return by charitable/Religious trust
- Section 139(4B) : Filing return by political party
- Section 139(4C) : Filing return by certain Institutions
- Section 139(4D) : Filing return by Scientific Research University
No documents are required to be affixed with any ITR Forms. ITR Forms can be filed either manually or electronically, with or without digital signature, with the Income Tax Department.


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