In most cases, Income Tax liability of an Assessee comes to more than the TDS deductible on that income. So while filing his income tax return, an Assessee deposits the balance tax liability as reduced by advance tax paid if any. So, in case, where there is some deficiency in deducting TDS, such shortfall is made good by Assessee by depositing extra tax.

Assessing Officers are known to immediately issue notice for levy of penalty in case some information is not correctly furnished by Assessee.  Assessee is not expected to assist Assessing Officer to frame a harsher order    against him. The onus of correctly analyzing the information and to frame appropriate order is that of Assessing Officer. If an Assessing Officer is not able to decipher the information correctly, then the he can not haul up an Assessee for omitting to give him certain information.

If you are an Income Tax Payer and God Forbid You have been levied penalty by Assessing Officer, what would be your first reaction? I Guess to apply for waiver of it to Commissioner of Income Tax, who has been delegated with power to waive the same.

And what would you do second; Again I guess, wait twiddling your thumbs whether he would do so or not or which would be the ‘most competent’ read ‘Affluent or advocate with maximum Social Relations’ to get this penalty waived off, Right?

I think I am.

Quite often a director in a private company withdraws or deposits money from his company. As per conventions of assessing officers, the same has to be taken as loan or where he has withdrawn money; either loan or as salary subject to provisions of TDS. This severely puts in jeopardy interests of small promoters, who prefer to be proprietor rather than promoter of private company.

If you are affected by this problem, a recent judgment by Madras High Court can help you. Please read on…….

Unfortunate tendency of Assessing Officers to act like absolute power does not end, even with the changing times and scenario. No doubt, there are enough precedents to quote before assessing officer, but if an assessing officer decides to be nasty, there is nothing a hapless Assessee can do. Appeals are an expensive and time consuming process.

Insurance Policies, in India, had never been an attractive investment options so far. Till few years from now, key highlight of insurance had been the tax savings option. Now with no arbitrary sub limits in section 80C (earlier section 88), this angle too is irrelevant as in most cases, PF deduction by employer or principal amount paid for housing loan are sufficient to meet the upper limit stipulated under the Income Tax Act.

[11:30] Buy century Textiles Aug fut in the range of 765-769(fut) and keep a SL at 759(fut)
Sell HDIL August Fut@ 538-542, SL-548, Tgt-510-515, TF-2-3days Buy UTI Bank August Futures at 584-586 (Futures) and Keep SL at 580 (Futures)
Buy Axis Bank August Futures at 584-586 (Futures) and Keep SL at 580 (Futures)

Notwithstanding a good monsoon that portends well for rural demand, the other two key drivers of the economy, exports and investments, are showing signs of moderation as a result of successive rise in interest rates and appreciating rupee,- Not good for stock market. This week, dow trend would set the new levels for indian indices

The boom in the real estate sector seems to have prompted the taxman to launch special combing operations in the in the current financial year to close in on evaders. Under the scanner, especially, will be those buying property way beyond their annual income. The income-tax department will also watch closely commodity brokers and those escaping the tax net despite high levels of agricultural income. The latest scrutiny norms, discussed with the Chief Commissioners of Income tax last week, have laid special emphasis on property deals.