FRESH BATCH OF CMA FROM 25TH NOVEMBER

WISH ALL OF U HAPPY DIWALI

Wishing all of  you a Happy Diwali glowing with Peace, Joy & Prosperity !!!

With Gleam of Diyas

And The Echos Of the Chants

May Happiness & Contentment Fill Your Life This Diwali 

Happy Diwali

CS MANOJ KUMAR BHAGAT

CHAIRMAN

Salients features of tax free bonds and points to be noted while investing in tax free bonds

Salients features of tax free bonds and points to be noted while investing in tax free bonds

The salient features of the tax-free bonds:

What are tax-free bonds: These bonds are mostly issued by government enterprises and pay a fixed coupon rate (interest rate). As the proceeds from the bonds are invested in infrastructure projects, they have a long-term maturity of typically 10, 15 or 20 years.

Tax benefits: The income by way of interest on tax-free bonds is fully exempted from income tax. The interest earned from these bonds does not form part of your total income. There is no deduction of tax at source (TDS) from the interest, which accrues to the bondholders. 

But remember that no tax deduction will be available for the invested amount.

Interest rate: The coupon (interest) rates of tax-free bonds are linked to the prevailing rates of government securities. So these bonds become attractive when the interest rates in the financial system are high.

 Interest payment: The interest on these bonds is paid annually and credited directly in the bank account of the investor. Tax free bonds vs bank fixed deposits (FDs): The interest earned on bank FDs and other normal bonds are added to the income of the investor and taxed as per the income-tax slabs. As interest earned from tax-free bonds are not taxed, investors in higher tax brackets mostly earn a better post-tax return than from FDs.

But remember, the bank FDs score over tax-free bonds in terms of liquidity as these bonds have longer maturity tenure.

 Credit risk: Since tax-free bonds are mostly issued by government-backed companies, the credit risk or risk of non-repayment is very low.

 Liquidity: The tax-free bonds get listed and then traded on the stock exchange(s) to offer an exit route to investors.

But these bonds might not enjoy high liquidity as they are long-term in nature. Do you need a demat account? The bonds could be issued both in demat and physical mode.

Secondary market: Investors can buy and sell these tax free bonds on the stock exchanges. 

Though the interest earned on these bonds is tax-free, any capital gain from sale in the secondary market is taxable. Short-term capital gains from sale of tax-free bonds on exchanges are taxed at the normal rate, while long-term capital gains are taxed at 10% without indexation and 20% with indexation, whichever is lower. By indexing, you adjust the purchasing price with annual inflation.

REVISION CLASSES FOR CS EXECUTIVE/PROFESSIONAL STUDENTS

REVISION CLASS- CS EXECUTIVE STUDENTS-

6/11/2013 TAX AT 8.30AM BY CA SAMEER NIGAM

10/11/2013  COST ACCOUNTANCY AT 8.30AM
CS PROFESSIONAL STUDENTS 

10/11/2013 FINANCIAL MANAGEMENT AT 10AM 

FREE FOR ICA STUDENTS

Penal provisions for the members of the Institute who had not complied with their CPE Hours requirements for the block period of 3 years

For kind information of the members Sub : Penal provisions for the members of the Institute who had not complied with their CPE Hours requirements for the block period of 3 years (1-1-2011 to 31-12-2013)

In order to function the system of mandatory CPE effective, the Council of the Institute of Chartered Accountants of India has decided that the members who fail to comply with their CPE Hours requirement for the current block of 3 years (1-1-2011 to 31-12-2013) are appropriately sanctioned. Therefore, the Council of the Institute has decided as under : ·        All the members are required to complete their CPE hours requirements for the block period of 3 years (1-1-2011 to 31-12-2013) by 31st December, 2013. ·        Any shortfall in the CPE credit for the calendar years 2011, 2012 and 2013 should be met by the members by 31st December, 2013. ·        The names of the members who fail to comply with their CPE hours Requirements for the block period of 3 years by 31st December, 2013 would be hosted on the website of the ICAI for information of public at large. ·        Further, the ICAI will not be responsible in any way for any action taken by any of the regulatory authorities on the basis of the names hosted on the website for allotting the professional work to them as sole proprietor or to their partnership firm. ·        To strike out the name/s from the list so hosted on the website, the member/s shall have to make up any shortfall in their CPE credit hours for the above block period of 3 years by obtaining twice of the amount of the shortfall. Such addition shall be in addition to the regular CPE hours requirement for the particular Calendar year in which they are making up the shortfall.

The members are requested to note the above. The members are also requested to comply with the CPE Hours requirements for the current year by 31st December, 2013.

Clarification about Applicability of the latest Finance Act and other changes for Company Secretaries December, 2013 Examination

Clarification about Applicability of the latest Finance Act and 
other changes for Company Secretaries December,
 2013 Examination

APPLICABLE ON

Institute of Company Secretaries of India (ICSI) has issued clarification about applicability of the latest Finance Act 
and other changes for Company Secretaries December, 2013 Examination.

The clarification is applicable for the following students:-

1. Students of Executive Programme

·        For appearing in the Paper "Tax Laws (Old Syllabus)"

·        For appearing in the Paper "Tax Laws and Practice (New Syllabus)"

2. Students of Professional Programme

·        For appearing in the Paper " Advanced Tax Laws and Practice "

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DIRECT TAXES

Direct Taxes applicable for December 2013 Examination shall be Assessment Year 2013-14 (Previous Year 2012-13).

Students are advised to study:-

1.      Finance Act, 2012 for December 2012 Examination

2.      All the Circulars, Clarifications, Notifications, etc. issued by the CBDT & Central Government, on or before 
six months prior to the date of the respective examinations.

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INDIRECT TAXES

Students appearing in ‘Executive Programme’ (in the ‘Tax Laws’) and 'Professional Programme' (in the 'Advanced
 Tax Laws and Practice') respectively may take note of the following changes applicable for December 2012 
Examination.

·        All changes made by the Finance Act, 2013.

·        All Circulars, Clarifications/Notifications issued by CBEC / Central Government effective six months prior to the

                     examination.

Students can see the Official Clarification by clicking the following link :-

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Tax Applicability for December 2013 Exams

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Download Tax Amendments 

(For Executive Programme)

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Download Tax Amendments

(For Professional Programme)

TDS Credit must be given even if TDS Certificate is not available/ entry is not shown in Form 26AS

TDS Credit must be given even if TDS Certificate is not available/ entry is not shown in Form 26AS

The assessee claimed credit for TDS which was denied by the AO on the ground that the claim did not match the entries shown in Form No. 26AS and that there was a discrepancy. On appeal, the CIT(A) held that the assessee would be entitiled to credit to the extent shown in the computer system of the department. On further appeal by the assessee to the Tribunal HELD:

The AO is not justified in denying credit for TDS on the ground that the TDS is not reflected in the computer generated Form 26AS. In Yashpal Sahwney 293 ITR 539 the Bombay High Court has noted the difficulty faced by taxpayers in the matter of credit of TDS and held that even if the deductor had not issued a TDS certificate, still the claim of the assessee has to be considered on the basis of the evidence produced for deduction of tax at source. The Revenue is empowered to recover tax from the person responsible if he had not deducted tax at source or after deducting failed to deposit with Central Government. The Delhi High Court has in Court On Its Own Motion Vs. CIT 352 ITR 273 directed the department to ensure that credit is given to the assessee even where the deductor had failed to upload the correct details in Form 26AS on the basis of evidence produced before the department. Therefore, the department is required to give credit for TDS once valid TDS certificate had been produced or even where the deductor had not issued TDS certificates on the basis of evidence produced by assessee regarding deduction of tax at source and on the basis of indemnity bond.