Income Tax:-Pan/Tan/Assessment Year/Major Head change

Friends, 

Correction in TAX Challan

        It is human error to mention wrong PAN/TAN, Assessment Year, Major Head, Minor Head or Nature of payment while depositing any challan in Bank. The following modifications time period are only applicable on physical challans deposited in Bank. 

Correction in OLTAS challan

NSDL receives tax collection data as uploaded by the bank. NSDL is not authorized to carry out any changes in the data sent by the bank to TIN.

The fields that can be corrected by the Taxpayer through Bank are tabulated below:

Sl. No.	Type of Correction on Challan	Period for correction request (in days)
1	PAN/TAN	Within 7 days from challan deposit date
2	Assessment Year	Within 7 days from challan deposit date
3	Total Amount	Within 7 days from challan deposit date
4	Major Head	Within 3 months from challan deposit date
5	Minor Head	Within 3 months from challan deposit date
6	Nature of Payment	Within 3 months from challan deposit date

Note :

1.   Above correction mechanism is applicable only for physical challans with deposit date greater than equal to September 1,       2011.
2.   Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank.
3.   For challans with challan deposit date from September 1, 2011 to September 30, 2011, the time limit for correction in TAN/PAN,       Assessment Year and Amount will be within 45 days from challan deposit date.
4.  The fields that can be corrected and the entity authorized to carry out corrections on challan with deposit date less than       September 1, 2011 are as below:

Sl. No.	Type of Correction on Challan	Performed By
1	PAN/TAN	Assessing Officer
2	Assessment Year	Assessing Officer
3	Major Head	Assessing Officer /Bank
4	Minor Head	Assessing Officer
5	Nature of Payment	Assessing Officer
6	Total Amount	Bank
7	Name	Bank

5.  For rectifications in challans paid through online mode (internet challan) , taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).

6.  More details on Challan Correction Mechanism available at
http://www.incometaxindia.gov.in/archive/LeftMenu_ChallanCorrectionMechanism_26082011.pdf

Excel based Forms Challan No 280,281,282 and 283

Friends,  No doubt that e-payment is a best way to deposit/pay Income Tax,Advance Tax , TDS, FBT etc.  But many times we feel that e-payment is not possible due to not having transaction rights with banks or any other problems. In such case, pdf format of the same forms can be collected from www.incometaxindia.gov.in but these forms can not be edited,  there are lot of chances to enter wrong Pan Number with other wrong details which  attract penalty of Rs. 10,000/- on mentioning wrong Pan Number in Challan.  To avoid such type of complication, excel based form Challan No 280, Challan No 281, Challan No 282 and Challan No 283 are best which are linked below for download.  You may enter your basic details and get it store for its future use.  Correctness of Pan depends upon your one time attention. 

Completely Free Excel Based Forms Challan No 280 ,281,282 and 283

Excel Free Salary Calculator with Form 16 with New format (click here)

How to Re-generate Cyber Receipt /Tax Challan

Friends,  due to many reasons there is major requirement of re-generation of cyber receipt/challan of payment made by Axis Bank.   It is easily available at www.axisbank.com. It is not available in internet Banking Link.  Re-generation of Challan/Cyber Receipt is available at main site without login.  Steps and picture views are given as under :

• Open website of axisbank at www.axisbank.com
• click on Corporate
• Govt. Business
• Cyber Receipt/Challan (available at bottom in right hand side)
• Payment through TIN-NSDL website (click here)
• CBDT-Direct Tax Challan
• Now select Challan Type, iConnect Payment ID, Date and Payment Amount

Payment of Advance Tax (How to Calculate Advance Tax)

Meaning of Advance Tax , Who is liable to Pay Advance Tax, Rates of Advance Tax, Installment and Due Dates of Advance Tax, How to Deposit Advance Tax, Advance Tax Calculator in Excel , Complete Procedure of Advance Tax, Interest for deferment of Advance Tax , Waiver of Interest, Interest for non/short Payment of Advance Tax, Interest on excess Payment of Advance Tax  are detailed given below :- 

ADVANCE TAX

Meaning of Advance Tax 

Payment of Advance Tax on estimated Income during the current year  is required to pay for all assesses. As example,  In the Financial Year 2010-11 (Assessment Year 2011-12) advance tax is payable in installments during the period 01.04.2010 to 31.03.2011 itself.   The total amount of Advance Tax will be adjusted during the Assessment Year 2011-12 at the time of assessment. 

Who is liable to Pay Advance Tax

1)  Advance Tax is required to pay under section 208 of Income Tax Act 1961 for all those assesses including Salaried and Pensioners whose advance tax on estimated income comes (after deducted TDS/TCS if any)  to Rs. 10,000/- or more in a Financial Year F.Y. 2010-11.

    Thus, if Income Tax payable (after deducting all deductions, rebates and TDS) is less than 10000 in a financial year 2010-11, there is no need to deposit any Advance Tax and the same tax will be deposited at the time of self assessment before filing of income tax return.

2)  In case an order u/s 210(3) is received by the person to pay an amount by way of Advance Tax  in Form No. 28, should deposit such amount in the installments as specified in the order.  This type of orders can be issued upto the last day of February of the Financial year.

     If that person estimates his income at a higher amount than that specified in the orders u/s 210(3), then he should pay advance tax in accordance with such higher estimate.

    However under sections 210(4) & (5) of Income Tax Act 1961, if he estimates him income at a lower amount, then he should send an estimate of such lower income in Form28-A, before the next installment falls due and deposit the remaining installments of advance tax accordingly. 

Dues dates and Installments of Advance Tax

Installment Number and Due Date	For Other than Companies (Individuals, HUF,Partnership Firms and others)	For Companies (Limited or Private Companies)
1) 15th  Jun. 2) 15th  Sep. 3) 15th  Dec. 4) 15th  Mar. 5) 31th  Mar.	Nil 30% of Advance Tax 30% of Advance Tax 40% of Advance Tax Tax on Capital gains or casual incomes arising after 15th March, if any	15% of Advance Fax 30% of Advance Tax 30% of Advance Tax 25% of Advance Tax Tax on Capital gains or casual incomes arising after 15th March, if any
Notes: - 1)     Any amount deposited by 31st March, is treated as advance tax for that    Financial Year. 2)      If the last day of payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment of the next immediately following working day, and in such cases, the mandatory interest leviable u/s 234B and 234C would not be charged vide CBDT’s circular No. 676 dated 14.01.1994.

Important Note for Salaried Tax-Payers : 

                 Advance Tax is different from Tax Deducted at Source (TDS).  In case of salaried people, normally tax is deducted at source from their salaries, by the employer.  Their income for the year is estimated, tax calculated thereon and 1/12th of such estimated tax is deducted from their monthly salary bill. 

          Salaried persons are normally not required to pay advance tax.  However, in case the tax liability estimated for the year is more than the TDS, then such employees shall be liable to pay advance tax as indicated above. 

How to Calculate Advance Tax 

          Advance Tax is payable (in installments , as above) on total income (estimated for the Financial Year) including capital gains and casual incomes such as winning from lotteries races, etc and after adjusting expenses or losses.

1. Therefore, income for the current year should eb estimated as precisely and correctly as possible. 
2. If any capital gain or casual income arises subsequent to payment of an installment , the remaining installments of advance tax should be accordingly revised.  If any such income arises after 15the March, tax should be deposited on such incomes latest by 31st March of the Financial Year. 
3. Remember, non/short payment and deferment of Advance Tax attracts penal interest.

Rates of Advance Tax

        Rates of Advance Tax are declared in the Finance Act every year.  The rates of advance tax shown in above are as per Finance Act 2010.

How to Deposit Advance Tax 

       Advance Tax can be deposited through Challan No. 280 in the Government Treasury (RBI) or any of of the authorised branches of nationalised banks.   Printed challan forms are available with the Income Tax Office free of cost.  While filing challan the following fields are required to be filed. 

1. Assessee's Name
2. Complete Address of Assessee.
3. Permanent Account Number 
4. Assessment Year 
5. Assessing Officer's Ward or Circle 
6. Amount of Advance Tax, Surcharge and Cess (if any).

     Online deposit of Advance Tax is best payment method.  When we deposit or pay online Advance Tax, there is no need to collect Physical Challan No. 280 or no need to stand in big rows to deposit advance tax in banks or treasury etc.  For online Tax payment (Click Here)

(Free Challan No. 280)

(Free Excel Based Income Tax Calculator)

15th December (Last Date for Advance Tax)

Hurry Up Friends

(Free Excel Based Income Tax Calculator for Assessment Year 2011-12 (Financial Year 2010-2011) )

As 15th December 2010 is a last date to payment/deposit of installment of Advance  Tax, calculate your Advance Tax according to your estimated income for the Financial Year 2010-11 and deposit Advance Tax in time .

If you do not deposit advance tax in time , you will have to pay/deposit interest on advance tax  u/s 234B and 234C.

• For Fast Internet Connection users or Broad Band Users Click Here to calculate your Advance Tax and Deposit your Income Tax On-Line.
• For slow Internet connection users , Click here to Download (off line mode) Income Tax Calculator. Advance Tax Calculation features are not available in this calculator.

Benefit of above Calculator is that there is no need of any Handy Calculator or to remember percentage of Advance Tax. Just fill your income in white cell and select proper option like as Individual (Man,Women or Senior Citizen) , Partnership or Company etc., your income tax and advance tax will be automatically calculated.

Due Date for Payment of e-tds/e-tcs

Friends,  Be alert for depositing tds/tcs in time and save your money.   7th October 2010 is near.  To avoid penalty  on late payment of TDS/TCS, Pay TDS/TCS in time.   In case, you make deposit TDS/TCS 8th October 2010 or on or before 31st October 2010 which you have  deducted/collected in the month of September 2010,  Income Tax Department will charge interest for one month due to TDS/TCS not deposit in due date i.e. 7th October,2010. 

For making e-payment on Challan 281 (Click Here)

Physical Challan No. 281 for Depositing TDS/TCS in Bank. (Click Here)

Last Date for Payment of Advance Tax

Friends,

                 Today is 15th September, 2010.  It is important date for tax payers.  Advance Tax liability stands due on this date.  30% Advance tax of Total Tax is due for Corporate or Non-corporate assessee.  Everyone should pay their due advance tax in time.  In case advance tax is not paid, Interest is to be charged on Income tax on account of non-payment of Advance Tax. 

 Download Challan No. 280  for depositing advance tax 

Click here to Deposit online Advance Tax

Challan No 280 or 281

Friends,

As the return filling date is very much near for those assesses whose sales increase 40 lakhs or covered under audit case. There is no doubt payment of tax should be through online/e-payment. But in some cases or having problem of transaction right from bank, there are lot of persons who are paying income Tax through physical challan. So download Challan Number 280 or 281 (for Tds) through the below link

Calculators Click Here
Challan Number 280 Click Here
Challan Number 281 (for Tds only) Click Here
Online Return Prepration Utility submission Procedure Click Here

e-Payment of tds/tcs and submit return in Time

(Deposit your Income Tax,TDS or TCS in Time)

(Avoid from Interest and Penalty)

Friends

All the deductions/collections of tax (Income tax) made in the month February 2010 on account of tax deduction at source or tax collected at source are due for payment upto 7th March, 2010.

Meaning of T.D.S.,T.C.S., E-Payments

T.D.S. =Tax Deduction at source

T.C.S. = Tax Collected at source

e-payments = Electronically Payments

Method of Payments

There are two methods for making payment of income tax, tds or tcs etc. One is manually and second is electronically. Electronically payment is most reliable in comparison with manually payment. It is easy, time saving and safe. There is no need to fill manually challan no. 280, 281 and 282 etc,no need to visit any bank again and again and payment of challan status can not be checked through your internet banking account.