Let me tell you story about a working individual- and you guess about him as to who he is. He usually watches TV business Channel as CNBC, Profit at night, reads yellow news paper in the morning and subscribes to stock alerts.

The financial year 2007-08 is about to end, and if you have not made investments for planning your income tax, time is running out.

I have come across few people, who feel, should they invest in tax savings scheme or rather pay income tax?

To my mind, answer is clear. In Indian context, we do need some savings as we have to take care of old age problems and other contingencies. So some savings are must, and Income Tax savings provide a sort of compulsory way to save and one must save to the extent of savings allowed.

Reliance Power issue was oversubscribed two times in just 60 seconds. The company is yet to commence production, while IPO of Emmar, a company with great track record of development in India and abroad and already in business had to earlier to reduce premium and then to withdraw the issue.

No.402/92/2006-MC (10 of 2008)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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New Delhi dated the 12th February 2008

PRESS RELEASE

Mostly when you claim a deduction and the same is denied by Assessing Officer, Assessing Officer seeks to levy penalty for concealment. In one such case of Eicon International (P.) Ltd, Assessee filed return claiming deduction u/s 80HHB.

Assessing Office in absence of requisite evidence regarding various conditions to be met for a allowing deduction under section 80HHB, found claim to be not bona fide and accordingly, while making assessment order, also levied a penalty under section 271(1)(c).

To discharge specific responsibilities, often employers allow certain additional allowances as conveyance, entertainment, periodicals etc to help employee discharge duties efficiently. Insurance companies generally allow higher conveyance allowance to help an employee meet additional expenditure incurred for field duties.

You claim a deduction in the return and if the same is not allowed by Income Tax Officer, by default he proceeds to initiate proceedings for concealment of income. However, as recently ruled by High Court of Delhi in the case of Commissioner of Income-tax, Delhi-V vs Regency Express Builders (P.) Ltd, in cases where two views on an issue are possible, no proceedings of concealment need be initiated.

Income Tax department, vide their Instruction No. 11/2007, Dated 18.12.2007 has instructed that no demand would be raised in cases where default/demand is for amount of Rs. 100 or less.

Under the present system, processing of electronically filed e-TDS returns is to be done by the RRCs. After initiation of bulk processing by RCCs, the TDS Assessing Officer assesses the mismatch report and issues show-cause notices for follow-up action. In large number of cases, the demand is for amounts lesser than Rs 100/-.

With budget ahead, markets are expected to be volatile. Every statement that comes from south block would have effect of either dampening the markets or lifting it to new highs. Especially, this year, when expectations from budget are quite high, budget has to be exceptionally market friendly to keep markets spirits high.