TDs on Purchase of Immovable Property effective from 1st June 2013

Any person purchasing immovable property of Rs. 50 lakh or more is required to deduct tax @1% from the payment to the seller (other than rural agricultural land).

è Step : 1  Deduct TDS

·        Deduct Tax @ 1% from the payment made to the seller

·        Collect the Permanent Account Number (PAN) of the seller & verify the same with the Original Pan Card.

è Step : 2 Online filing of statement at www.tin.nsdl.com

·        It is mandatory to furnish the PAN of seller as well as the purchaser while providing the information regarding the sale transaction in the online form (Form No. 26QB)

·        Please insure that there is no error quoting the PAN or other details in filing online Form 26Q

è Step : 3  Depositing the tax deducted

·        Deposit the tax deducted through e-payment only, either at the time of filling of form 26QB or subsequent to it, e-payment can be made using electronic payment facility at any authorized bank, including self-net banking facility.

·        In case the payment of tax deducted is made subsequent to the filling of Form 26QB, pay using electronic payment facility at any authorized bank within 7 days after online filling of statement at www.tdscpc.gov.in

·        If there is a delay beyond 7 days in payment of tax, the statement filed online would be treated as “Invalid” in that case. Form 26QB, will need to be filed again

è Step : 4 Issue of TDS Certificate

·        Download TDS certificate from TRACES (www.tdscpc.gov.in)

                        RESPONSIBILITY OF THE SELLER OF THE IMMOVABLE PROPERTY

·        Provide PAN to the purchaser for furnishing information regarding TDS to the Income TAX Department.

·        Verify deposit of taxes deduct by the Purchaser in your form 26AS Annual Tax Statement.

v  TAN NOT REQUIRED

            TAN of the deductor is not required for the payment and reporting of the Tax deducted under this section and PAN allocated to the deductor shall be used for payment and reporting of TDS made under this section.

Levy of S.Tax might be removed on Home Deliveries and Takeaways

Some Senior government Officials said that The Finance Ministry may soon clarify that takeaway and home delivery of food will not attract service tax, a move which will be welcomed by the likes of McDonalds, Dominos, Pizza Hut etc.

The Ministry is examining the issue and there is a strong view that takeaways and home deliveries should not attract levy of Service Tax.

Payment of Bonus Act - Law

Applicability: 

The Act is applicable to 

(a)  any factory employing 10 or more persons where any processing is carried out with aid of power 

(b) Other establishments (established for purpose of profit) employing 20 or more persons. 

Once the Act is applicable, it continues to apply even if number of employees fall below 20. The Act is applicable to Government companies and corporations owned by Government which produces goods or renders services in competition with private sector. 

However, the Act is not applicable to Government employees, the employees of Municipal Corporation or Municipality, railway employees, university and employees of educational institutions, public sector insurance employees, employees of RBI and public sector financial institutions, charitable hospitals, social welfare organisations and defense employees. The Act does not apply to any institution established not for purposes of profit.

Establishments to which the Act is applicable - The Act applies to— (a) every factory; and (b) every other establishment in which twenty or more persons are employed on any day during an accounting year.
Employees Eligible for Bonus:

Employees drawing salary or wages upto Rs 3,500 per month are entitled to bonus, if he has worked for at least 30 working days in an accounting year. Even a worker working in seasonal factory is eligible if he has worked for at least 30 working days. Apprentices are not eligible for bonus.

Salary above Rs. 2,500 is not considered for calculation of Bonus. Employee drawing salary/wage exceeding Rs 3,500 is not entitled to any bonus under the Act.

Thus, minimum bonus @ 8.33% will be Rs 2,500 and maximum @ 20% will be Rs 6,000 for the year, when salary of employee exceeds Rs 2,500 but is less than Rs 3,500.

Minimum Bonus:

Every employer shall be bound to pay to every employee in respect of any accounting year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year. Where an employee has not completed fifteen years of age at the beginning of the accounting year, the minimum bonus payable is 8.33% or Rs 60 whichever is higher.

Maximum Bonus:

Where in respect of any accounting year, the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent of such salary or wage. In computing the allocable surplus under this section, the amount set on or the amount set off  shall be taken into account.

Salary/Wages for calculation of Bonus:

Where the salary or wage of an employee exceeds Rs 2,500 per month, the bonus payable to such employee shall be calculated as if his salary or wages were Rs 2,500 per month.  In other words, employees drawing salary or wages between Rs 2,500 to Rs 3,500 per month, are entitled to bonus on the basis of Rs 2,500 per moth salary only.

Some Useful Websites for Commerce Professionals

Some useful links for Commerce Professionals:

www.icai.org – The Institute of Chartered Accountants of India

www.nfcgindia.org –National Foundation for Corporate Governance

www.mca.gov.in – Ministry of Corporate Affairs

www.competition-commission-india.nic.in – Competition Commission of India

www.sebi.gov.in – Securities and Exchange Board of India

www.ifac.org – International Federation of Accountants

www.aicpa.org – American Institute of Certified Public Accountants

www.finmin.nic.in – Ministry of Finance, GOI

www.mha.nic.in – Ministry of Home Affairs

www.ficci.com – Federation of Indian Chamber of Commerce and Industry

www.commerce.nic.in – Ministry of Commerce and Industry, GOI

www.sec.gov – US Securities and Exchange Commission

www.wto.org – World Trade Organisation

www.rbi.org.in – Reserve Bank of India

www.bseindia.com – Bombay Stock Exchange

www.iod.com – Institute of Directors, UK

www.taxmann.com – Taxmann

www.cbec.gov.in – Central Board of Excise and Customs

www.esic.nic.in – Employees State Insurance Corporation

www.epfindia.com – Employees’ Provident Fund Organisation

www.tin-nsdl.com – Tax Information Network

www.incometaxindia.gov.in – Income Tax Department

www.aces.gov.in – Automation of Central Excise and Service Tax

www.digitalsignatureindia.com – Digital Signature

www.wbcomtax.nic.in – Directorate of Commercial taxes, WB

www.clb.nic.in – Company Law Board

www.cag.gov.in – Comptroller and Auditor General of India

www.servicetax.gov.in – Service Tax of India

www.apct.gov.in – Commercial Taxes Department

Further contribution is appreciated.

Name of the Company	Rank	Reason
Google	1	The Internet juggernaut takes the Best Companies crown for the fourth time, and not just for the 100,000 hours of subsidized massages it doled out in 2012. New this year are three wellness centers and a seven-acre sports complex, which includes a roller hockey rink; courts for basketball, bocce, and shuffle ball; and horseshoe pits.
SAS	2	With two artists in residence on staff, the perk-friendly, privately held data analytics firm takes creativity seriously. One employee cites SAS's "creative anarchy" as conducive to innovation. New this year: an organic farm for SAS's four cafeterias.
CHG Healthcare Services	3	Employees of this medical staffing firm compete in talent shows, trivia contests, and activities like a Dress As Your Favorite President competition. Extra paid time off is given to sales teams that meet their goals. New this year: two on-site health centers.
The Boston Consulting Group	4	The elite management consulting firm maintains work-life balance by issuing a "red zone report" to flag when individuals are working too many long weeks. New consultants can delay their start date by six months and receive $10,000 to volunteer at a nonprofit.
Wegman Food Markets	5	Turnover is an exceptionally low 3.6% at the Northeastern grocery chain, which lets employees reward one another with gift cards for good service. Many workers like it there so much they bring in relatives—one in five employees are related.
NetApp	6	Employees at the data storage company often get a chance to receive special recognition. Vice chairman Tom Mendoza asks managers to notify him when they "catch someone doing something right," and then calls 10 to 20 employees every day to thank them.
Hilcorp Energy Company	7	This oil and gas producer, a newcomer to the list, promised staff in 2010 that if the company doubles its production rate and reserves by 2015, every employee will get a check for $100,000. An earlier, met goal rewarded 400 employees with $50,000 toward a new car.
Edward Jones	8	The privately held securities firm maintains some 11,000 small offices and a close-knit culture with regular regional gatherings for ice skating, fishing tournaments, and more. Forty-four percent of new hires come from employee referrals.
Ultimate Software	9	The developer of people-management software—customers include Google, Quicken Loans, and the New York Yankees—covers 100% of health care premiums for employees and dependents and treats workers to a free vacation every two years.
Camden Property Trust	10	Good times are built into the business at apartment-manager Camden, whose founders are known for practical jokes and impersonations. Other benefits include discounted rentals for employees and a 401(k) that matches at least 50% for up to 7% of pay.

Chartered Accountants Final & CPT Results Statistics

Financially Healthy??? Some crucial facts

We need to assess financial health to ensure the achievement of all goals. The following numbers acts as mile markers to help know if we are saving enough.

• Savings-to income ratio: If you are in your 30s, you should strive for a 1:1 ratio between liquid assets and annual income. Liquid assets include your investments and savings not home as it can't be converted to cash easily. In other words, a 35-year-old making Rs 6 lakh annually should have the same amount in savings.

    The ratio, according to standard wisdom, increases with age. For a couple aged 40, it should be     around 1.5 or higher. At 45 years, the ratio should be around 3, and at 50, it should be 4.5. The ratio   will give you a good idea if you are saving enough to reach your retirement goal.

• Years to save tax on sale of property: You can claim tax exemption under Section 54 on the long-term capital gain (LTCG) from the sale of a house if you use the entire profit to buy another house within two years. If you had already bought a second house within a year before selling the first one, you could still avail of the tax exemption.

• 3 months' expenses in an emergency fund: A contingency fund should cover eventualities such as job loss or medical issues. To many, salting away three months of living expenses seems impossible. Remember not to put this fund in your regular bank account. Stash the contingency cash in liquid funds or a separate savings account. You won't earn a high interest, but it will be easier to access when you really need it.

• 10 times the annual income is your life insurance: As a general rule, you should have life insurance that is about 10 times your annual earning. So, if your annual salary is Rs 6 lakh, you should have life insurance worth Rs 60 lakh. However, your insurance needs will vary based on other factors, such as your age, liability and debt.

• 15% Savings rate: Although this figure used to be a minimum of 10%, experts now endorse a savings rate of up to 15%. Sub-divide this into 10% for retirement and 5% for short-term saving like a vacation. The rule is also expressed as a ratio of 90:10 or 85:15, wherein you spend the first figure and save the second.