List of important Income Tax Exemptions for FY 2016-2017 (AY 2017-2018) // MONARCH // SUNIL RAJAI

List of important Income Tax Exemptions for FY 2016-2017 (AY 2017-2018) // MONARCH // SUNIL RAJAI

Budget 2016-17 has been presented in Parliament. The Finance Minister has kept the Personal Income Tax slab rates unchanged for the Financial Year 2016-2017 (Assessment Year 2017-2018).

Tax Deduction limits under few Sections of the Income Tax Act. Let us understand all the important sections and new proposals with respect to Income Tax Deductions FY 2016-2017. This list can help you in planning your taxes.

Income Tax Deductions F.Y.2016-2017 (A.Y.2017-2018)

Section 80C              - Limit Rs. 1,50,000
Section 80D              - Limit Rs. 25000/35000
Section 24B               - Limit Rs. 2,00,000 (Self-Occupied Property)
Section 80EE            - Limit Rs. 50,000
Section 80GG           - Limit Rs. 60,000
Section 80E              - Limit Rs. 0 Zero
Section 87A              - Limit Rs. 5,000
Section 80CCD(1b)  - Limit Rs. 50,000 (Non Salary Person)
Section 80TTA          - Limit Rs. 10,000





Section 80c

The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;

    PPF (Public Provident Fund)
    EPF (Employees’ Provident Fund)
    Five year Bank or Post office Tax saving Deposits
    NSC (National Savings Certificates)
    ELSS Mutual Funds (Equity Linked Saving Schemes)
    Kid’s Tuition Fees
    SCSS (Post office Senior Citizen Savings Scheme)
    Principal repayment of Home Loan
    NPS (National Pension System)
    Life Insurance Premium
    Sukanya Samriddhi Account Deposit Scheme






Section 80CCC

Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.


Section 80CCD

Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be up to 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.

To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals and Gross income is applicable for non-salaried. The definition of Salary is only ‘Dearness Allowance.’ If your employer also contributes to Pension Scheme, the whole contribution amount (10% of salary) can be claimed as tax deduction under Section 80CCD (2).

Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.

Section 80D

Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure.

Health Insurance Policy Premium & Section 80-D Tax Benefit for A.Y.2017-2018
Scenarios	Health Insurance premium Paid for & Maximum Tax Deduction Limits.		Total Deduction Under Section 80-D
	Self, Spouse & Dependent Children	Parents (whether dependent or not)
No One in your Family has attained 60 years of Age	Up to Rs. 25,000	Up to Rs. 25,000	Rs. 50,000
The elder Member in your Family (Your Self, Spouse and Dependent Children) is less then 60 Years and Your Parents (either mother or Father) are above 60 years of Age	Up to Rs. 25,000	Up to Rs. 30,000	Rs. 55,000
The elder Member in your Family (Yourself, Spouse and Dependent Children) is attain 60 Years and Your Parents (either mother or Father) are above 60 years of Age	Up to Rs. 30,000	Up to Rs. 30,000	Rs. 60,000

Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).

Section 80DD

You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of upto Rs 1.25 lakh in case of severe disability can be availed.

To claim this deduction, you have to submit Form no 10-IA.Section 80D 80u Form no 10-IA pic

Section 80DDB

An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment of specified critical ailments. This can also be claimed on behalf of the dependents. The tax deduction limit under this section for Senior Citizens is Rs 60,000 and for very Senior Citizens (above 80 years) the limit is Rs 80,000.

To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.

For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:

    Neurological Diseases where the disability level has been certified to be of 40% and above;

(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinson’s Disease

    Malignant Cancers
    Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
    Chronic Renal failure
    Hematological disorders
        Hemophilia
        Thalassaemia

 Section 24 (B)

The interest component of home loans is allowed as deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as tax deduction. (Read: Understanding Tax Implications of Income from house property)

Section 80EE

This is a new proposal which has been made in Budget 2016-2017. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.

    The home loan should have been sanctioned in FY 2016-2017.
    Loan amount should be less than Rs 35 Lakh.
    The value of the house should not be more than Rs 50 Lakh &
    The home buyer should not have any other existing residential house in his name.

Section 80U

This is similar to Section 80DD. Tax deduction is allowed for the tax assessee who is physically and mentally challenged.

Section 80GG

As per the budget 2016 proposal, the Tax Deduction amount under 80GG has been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).

The extent of tax deduction will be limited to the least amount of the following;

    Rent paid minus 10 percent the adjusted total income.
    Rs 5,000 per month.
    25 % of the total income.

Section 80G

Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. But deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.

Section 80E

If you take any loan for higher studies (after completing Senior Secondary Exam), tax deduction can be claimed under Section 80E for interest that you pay towards your Education Loan. This loan should have been taken for higher education for you, your spouse or your children or for a student for whom you are a legal guardian. Principal Repayment on educational loan cannot be claimed as tax deduction.

There is no limit on the amount of interest you can claim as deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.

Section 87A Rebate

If you are earning below Rs 5 lakh, you can save an additional Rs 3,000 in taxes. Tax rebate under Section 87A has been raised from Rs 2,000 to Rs 5,000 for FY 2016-2017 (AY 2017-2018).

In case if your tax liability is less than Rs 5,000 for FY 2016-17, the rebate u/s 87A will be restricted up to income tax liability only.

Section 80 TTA

Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account with a bank, co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits.

Conclusion
It is prudent to avoid last minute tax planning. Do not invest in unwanted life insurance polices or in any other financial products just to save taxes. It is better you plan your taxes based on your financial goals at the beginning of the Financial Year itself. Plan your taxes from April 2016 itself, instead of waiting until late December 2016 (or) January 2017.

It is OK to pay some taxes when you can not save or cannot invest in right financial products.  But, do not invest just to save TAXES. The cost of buying wrong financial products may outweigh the cost of taxes. Tax Planning is not a goal but a tool. Remember “Tax Planning alone is not Financial Planning.”

Also, kindly understand the tax treatment of the selected investment products across the different investment stages (i.e., investment, accrual & withdrawal) and then invest.

I believe that the above list is useful for your Tax Planning purposes. The above ‘Income Tax Deductions 2016-2017’ are applicable for financial year 2016-2017 (Assessment Year 2017-2018).

MONARCH TAX UPDATE: LAST DATE FOR TDS PAYMENT AND DOWNLOAD CERTIFICATES 4th QTR. of FY: 2015-2016 (A.Y.2016-2017)

MONARCH TAX UPDATE:  LAST DATE FOR TDS PAYMENT AND DOWNLOAD CERTIFICATES 4th QTR. of FY: 2015-2016 (A.Y.2016-2017)

-Last date of e-TDS/TCS payment for the month of March, 2016 is 30th April, 2016

-Last date for filing of TDS returns for Q4 of F.Y.:2015-2016 (A.Y.2016-2017) is 15th May, 2016

-Last date for issuance of TDS certificates for Q4 of F.Y.: 2015-2016 (A.Y.2016-2017)

 I.  Form 16A (Non Salary) is 30th May 2016

 II. Form 16 (Salary) is 31st May 2016

The above dates are applicable for Non - Government Deductors.

Online upload of of TDS/TCS/AIR Return at NSDL-TIN website to discontinue from 01.05.2016

Online upload of of TDS/TCS/AIR Return at NSDL-TIN website to discontinue from 01.05.2016

Online Upload of e-TDS/TCS Statement(s) and AIR Functionality will be discontinued from  1st- May-2016 at TIN NSDL Website. The user who are  desirous to file e-TDS/TCS Statements / AIR can visit their nearest TIN-FC Agents. Alternatively, they can visit to e-filing of ITD for online Upload.

Activities carried out by these TIN Facilitation Centers cum Pan Centers are :

Receive e-TDS/TCS returns from deductors / Collectors and Upload them to the TIN Central System.

Received TDS/TCS returns in paper format from non-corporate, non-government deductors/collectors and upload to the TIN Central System.

Received Annual Information Returns from Filer and upload them to the TIN Central System.

Received application for allotment of new TAN Form 49B and Request for changes or correction in TAN data for TAN Allotted from TAN Applicants.

Received applications for allotment of NEW PAN (Form 49B, FORM 49AA) and Request for New PAN Card or / and changes or correction in PAN data from PAN Applicants.

Receive from 24G statement from Account Offices (AO) and upload them to the TIN Central System.

TIN Facilitation Centers CUM Pan Center are available across the country. Link to Search for TIN-Facilitation Center cum PAN Centers Near your Near location.

Why not to file Income Tax Return before 15th May // MONARCH // SUNIL RAJAI

Why not to file Income Tax Return before 15th May // MONARCH // SUNIL RAJAI

At the very first instance, it has been a great step by the government that they have made available the ITR forms on 1st Day of April itself. Although the last date of filing ITR is 31st July for individuals, people have already started filing returns from the first week of April itself. But, as a professional, there are few points which I would like to highlight regarding filing of returns before 15th May. Let us discuss about income tax return for salaried class, for whom Form 16 and 26AS are the basis for filing ITR .

What is 26AS? 26AS is nothing but a statement of TDS deducted by employer on your salary. Credit of TDS in 26AS of individuals is reflected only after filing of TDS returns by employers. Nowadays Form 16 is directly generated from TDS website (TRACES) after filing of TDS returns.

Due date of TDS return: The due date of filing TDS returns for the March quarter is 15th This implies that your 26AS will not be updated & you will not get Form 16 from the employer before 15th May.

Appropriate date of filing ITR by individuals: The best time to file ITRs by individuals is from 16th May to 31st Why so?????

If you file your ITR before 15th May, it may happen that there are differences in the TDS reflected in your salary slips and the TDS in Form 16.

From statistics of last year, it was observed that 70 – 80 % of notices u/s 143(1) issued by IT department were because of the mismatch of TDS claimed in ITR and TDS shown in 26AS. This can be avoided simply by filing ITR after 15th May.

Government is motivating people to file income tax returns at the earliest, but early filing of returns may lead to more discrepancies in TDS amount, resulting in demand of tax and interest from TAXMAN, thus increasing trouble for taxpayers. Government should also advance the date of filing TDS returns from the next year so that the true spirit of early availability of ITR forms is achieved.

So let us not rush and wait for the employers to file TDS returns first.

Thanks for reading!

At the very first instance, it has been a great step by the government that they have made available the ITR forms on 1^st Day of April itself. Although the last date of filing ITR is 31^st July for individuals, people have already started filing returns from the first week of April itself. But, as a professional, there are few points which I would like to highlight regarding filing of returns before 15^th May. Let us discuss about income tax return for salaried class, for whom Form 16 and 26AS are the basis for filing ITR .

1. What is 26AS? 26AS is nothing but a statement of TDS deducted by employer on your salary. Credit of TDS in 26AS of individuals is reflected only after filing of TDS returns by employers. Nowadays Form 16 is directly generated from TDS website (TRACES) after filing of TDS returns.

2. Due date of TDS return: The due date of filing TDS returns for the March quarter is 15^th This implies that your 26AS will not be updated & you will not get Form 16 from the employer before 15^th May.

3. Appropriate date of filing ITR by individuals: The best time to file ITRs by individuals is from 16^th May to 31^st Why so?????

If you file your ITR before 15^th May, it may happen that there are differences in the TDS reflected in your salary slips and the TDS in Form 16.

From statistics of last year, it was observed that 70 – 80 % of notices u/s 143(1) issued by IT department were because of the mismatch of TDS claimed in ITR and TDS shown in 26AS. This can be avoided simply by filing ITR after 15^th May.

Government is motivating people to file income tax returns at the earliest, but early filing of returns may lead to more discrepancies in TDS amount, resulting in demand of tax and interest from TAXMAN, thus increasing trouble for taxpayers. Government should also advance the date of filing TDS returns from the next year so that the true spirit of early availability of ITR forms is achieved.

So let us not rush and wait for the employers to file TDS returns first.

Thanks for reading!

-CA Mohit Bansal, Nagpur

- See more at: http://taxguru.in/income-tax/file-income-tax-return-15th.html#sthash.KLPJi0bi.dpufAt the very first instance, it has been a great step by the government that they have made available the ITR forms on 1st Day of April itself. Although the last date of filing ITR is 31st July for individuals, people have already started filing returns from the first week of April itself. But, as a professional, there are few points which I would like to highlight regarding filing of returns before 15th May. Let us discuss about income tax return for salaried class, for whom Form 16 and 26AS are the basis for filing ITR .

    What is 26AS? 26AS is nothing but a statement of TDS deducted by employer on your salary. Credit of TDS in 26AS of individuals is reflected only after filing of TDS returns by employers. Nowadays Form 16 is directly generated from TDS website (TRACES) after filing of TDS returns.

    Due date of TDS return: The due date of filing TDS returns for the March quarter is 15th This implies that your 26AS will not be updated & you will not get Form 16 from the employer before 15th May.

    Appropriate date of filing ITR by individuals: The best time to file ITRs by individuals is from 16th May to 31st Why so?????

If you file your ITR before 15th May, it may happen that there are differences in the TDS reflected in your salary slips and the TDS in Form 16.

From statistics of last year, it was observed that 70 – 80 % of notices u/s 143(1) issued by IT department were because of the mismatch of TDS claimed in ITR and TDS shown in 26AS. This can be avoided simply by filing ITR after 15th May.

Government is motivating people to file income tax returns at the earliest, but early filing of returns may lead to more discrepancies in TDS amount, resulting in demand of tax and interest from TAXMAN, thus increasing trouble for taxpayers. Government should also advance the date of filing TDS returns from the next year so that the true spirit of early availability of ITR forms is achieved.

So let us not rush and wait for the employers to file TDS returns first.

Thanks for reading!

At the very first instance, it has been a great step by the government that they have made available the ITR forms on 1^st Day of April itself. Although the last date of filing ITR is 31^st July for individuals, people have already started filing returns from the first week of April itself. But, as a professional, there are few points which I would like to highlight regarding filing of returns before 15^th May. Let us discuss about income tax return for salaried class, for whom Form 16 and 26AS are the basis for filing ITR .

1. What is 26AS? 26AS is nothing but a statement of TDS deducted by employer on your salary. Credit of TDS in 26AS of individuals is reflected only after filing of TDS returns by employers. Nowadays Form 16 is directly generated from TDS website (TRACES) after filing of TDS returns.

2. Due date of TDS return: The due date of filing TDS returns for the March quarter is 15^th This implies that your 26AS will not be updated & you will not get Form 16 from the employer before 15^th May.

3. Appropriate date of filing ITR by individuals: The best time to file ITRs by individuals is from 16^th May to 31^st Why so?????

If you file your ITR before 15^th May, it may happen that there are differences in the TDS reflected in your salary slips and the TDS in Form 16.

From statistics of last year, it was observed that 70 – 80 % of notices u/s 143(1) issued by IT department were because of the mismatch of TDS claimed in ITR and TDS shown in 26AS. This can be avoided simply by filing ITR after 15^th May.

Government is motivating people to file income tax returns at the earliest, but early filing of returns may lead to more discrepancies in TDS amount, resulting in demand of tax and interest from TAXMAN, thus increasing trouble for taxpayers. Government should also advance the date of filing TDS returns from the next year so that the true spirit of early availability of ITR forms is achieved.

So let us not rush and wait for the employers to file TDS returns first.

Thanks for reading!

-CA Mohit Bansal, Nagpur

- See more at: http://taxguru.in/income-tax/file-income-tax-return-15th.html#sthash.KLPJi0bi.dpuf

At the very first instance, it has been a great step by the government that they have made available the ITR forms on 1^st Day of April itself. Although the last date of filing ITR is 31^st July for individuals, people have already started filing returns from the first week of April itself. But, as a professional, there are few points which I would like to highlight regarding filing of returns before 15^th May. Let us discuss about income tax return for salaried class, for whom Form 16 and 26AS are the basis for filing ITR .

1. What is 26AS? 26AS is nothing but a statement of TDS deducted by employer on your salary. Credit of TDS in 26AS of individuals is reflected only after filing of TDS returns by employers. Nowadays Form 16 is directly generated from TDS website (TRACES) after filing of TDS returns.

2. Due date of TDS return: The due date of filing TDS returns for the March quarter is 15^th This implies that your 26AS will not be updated & you will not get Form 16 from the employer before 15^th May.

3. Appropriate date of filing ITR by individuals: The best time to file ITRs by individuals is from 16^th May to 31^st Why so?????

If you file your ITR before 15^th May, it may happen that there are differences in the TDS reflected in your salary slips and the TDS in Form 16.

From statistics of last year, it was observed that 70 – 80 % of notices u/s 143(1) issued by IT department were because of the mismatch of TDS claimed in ITR and TDS shown in 26AS. This can be avoided simply by filing ITR after 15^th May.

Government is motivating people to file income tax returns at the earliest, but early filing of returns may lead to more discrepancies in TDS amount, resulting in demand of tax and interest from TAXMAN, thus increasing trouble for taxpayers. Government should also advance the date of filing TDS returns from the next year so that the true spirit of early availability of ITR forms is achieved.

So let us not rush and wait for the employers to file TDS returns first.

Thanks for reading!

-CA Mohit Bansal, Nagpur

- See more at: http://taxguru.in/income-tax/file-income-tax-return-15th.html#sthash.KLPJi0bi.dpuf

Negotiable Instruments Act, 1881

Negotiable Instruments Act, 1881 – Section 138, 141 –  As far as the accused Nos.4 and 5 were concerned, they were whole-time directors and the assertion is that they were in charge of day to day business of the Company and all of them had with active connivance, mischievously and intentionally issued the cheques in question - The aforesaid averments, as we find, clearly meet the requisite test.
SUPREME COURT – 6TH APRIL, 2016
(2016)4 PLRSC 1

____________________________

Supreme Court puts Final Death Nail on Concepts of Ancestral Property & Joint Family Property,

March,3,2016: In a Landmark Judgment pronounced by Supreme Court of India yesterday in case titled Uttam vs Subagh Singh, Civil Appeal no. 2360/2016 Dt. 2nd March 2016 has relaid the Law on to the Concept of Ancestral Property.

Apex Court ruled that a conjoint reading of Sections 4, 8 and 19 of the Hindu Succession Act, 1956, after joint family property has been distributed in accordance with section 8 on principles of intestacy, the joint family property ceases to be joint family property in the hands of the various persons who have succeeded to it as they hold the property as tenants in common and not as joint tenants.

The suit was filed by a Son for partition, in Devas, Madhya Pradesh, against his father and his father’s three brothers. He claimed a 1/8th share in the suit property on the footing that the suit property was ancestral property, and that, being a coparcener, he had a right by birth in the said property in accordance with the Mitakshara Law. It was ruled by SC that on the date of the birth of the appellant in 1977 the said ancestral property, not being joint family property, the suit for partition of such property would not be maintainable.

Concept of  Ancestral Property

Property inherited by a Hindu from his father, father’s father or father’s fathers’ father, is ancestral property.

Any property acquired by the Hindu great grand father, which then passes undivided down the next three generations up to the present generation of great grand son/daughter.
1. This property should be four generation old.
2. It should not have been divided by the users in the joint Hindu family as once a division of the property takes place, the share or portion which each Coparcener gets after the division becomes his or her self acquired property.
3. The right to a share in ancestral or coparcenary property accrues by birth itself, unlike other forms of inheritance, where inheritance opens only on the death of the owner.
4. The rights in ancestral property are determined per stripes and not per capita. Share of each generation is first determined and the successive generations in turn sub divide what has been inherited by their respective predecessor.
5. Properties inherited from mother, grandmother, uncle and even brother is not ancestral property. Property inherited by will and gift are not ancestral properties.

6.Self acquired property can become ancestral property if it is thrown into the pool of ancestral properties and enjoyed in common.

In Mulla’s Principles of Hindu Law (15th Edition), it is stated at page 289 :
“………. if A inherits property, whether movable or immovable, from his father or father’s father, or father’s father’s father, it is ancestral property as regards his male issue. If A has no son, son’s son, or son’s son’s son in existence at the time when he inherits the property, he holds the property as absolute owner thereof, and he can deal with it as he pleases ………. A person inheriting property from his three immediate paternal ancestors holds it, and must hold it, in coparcenary with his sons, sons’ sons and sons’ sons’ sons’ but as regards other relations he holds it and is entitled to hold it, as his absolute property.”

In case titled Commissioner of Wealth Tax, Kanpur and Others Vs. Chander Sen and Others, (1986) 3 SCC 567, it was held that after passing of the Hindu Succession Act, 1956 the traditional view that on inheritance of an immovable property from paternal ancestors up to three degrees, automatically an HUF came into existence, no longer remained the legal position in view of Section 8 of the Hindu Succession Act, 1956.

This judgment of the Supreme Court in the case of Chander Sen (supra) was thereafter followed by the Supreme Court in the case of Yudhishter Vs. Ashok Kumar, (1987) 1 SCC 204 wherein the Supreme Court reiterated the legal position that after coming into force of Section 8 of the Hindu Succession Act, 1956, inheritance of ancestral property after 1956 does not create an HUF property and inheritance of ancestral property after 1956 therefore does not result in creation of an HUF property.

Thus in law ancestral property can only become an HUF property if inheritance is before 1956, and such HUF property therefore which came into existence before 1956 continues as such even after 1956. In such a case, since an HUF already existed prior to 1956, thereafter, since the same HUF with its properties continues, the status of joint Hindu family/HUF properties continues, and only in such a case, members of such joint Hindu family are coparceners entitling them to a share in the HUF properties.

Classification of property under Hindu Law
The property under Hindu Law can be classified under two heads:-

(i) Coparcenary property; and

(ii) Separate property.

Coparcenary property is again divisible into-

(i) ancestral property and

(ii) joint family property which is not ancestral.

This latter kind of property consists of property acquired with the aid of ancestral property and property acquired by the individual coparcener without such aid but treated by them as property of the whole family.

Law laid by Delhi High Court

In case titled Surender Kumar vs Dhani Ram CS (OS) No.1737/2012 decided on 18th January, 2016 Hon’ble Mr. J. Valmiki Mehta of Delhi High Court ruled-

(i) If a person dies after passing of the Hindu Succession Act, 1956 and there is no HUF existing at the time of the death of such a person, inheritance of an immovable property of such a person by his successors-in-interest is no doubt inheritance of an ‘ancestral’ property but the inheritance is as a self acquired property in the hands of the successor and not as an HUF property although the successor(s) indeed inherits ‘ancestral’ property i.e a property belonging to his paternal ancestor.

(ii) The only way in which a Hindu Undivided Family/joint Hindu family can come into existence after 1956 (and when a joint Hindu family did not exist prior to 1956) is if an individual’s property is thrown into a common hotchpotch. Also, once a property is thrown into a common hotchpotch, it is necessary that the exact details of the specific date/month/year etc of creation of an HUF for the first time by throwing a property into a common hotchpotch have to be clearly pleaded and mentioned and which requirement is a legal requirement because of Order VI Rule 4 CPC which provides that all necessary factual details of the cause of action must be clearly stated.

Thus, if an HUF property exists because of its such creation by throwing of self-acquired property by a person in the common hotchpotch, consequently there is entitlement in coparceners etc to a share in such HUF property.

(iii) An HUF can also exist if paternal ancestral properties are inherited prior to 1956, and such status of parties qua the properties has continued after 1956 with respect to properties inherited prior to 1956 from paternal ancestors. Once that status and position continues even after 1956; of the HUF and of its properties existing; a coparcener etc will have a right to seek partition of the properties.

(iv) Even before 1956, an HUF can come into existence even without inheritance of ancestral property from paternal ancestors, as HUF could have been created prior to 1956 by throwing of individual property into a common hotchpotch. If such an HUF continues even after 1956, then in such a case a coparcener etc of an HUF was entitled to partition of the HUF property.

Law laid by Supreme Court now

The law, therefore, insofar as it applies to joint family property governed by the Mitakshara School, prior to the amendment of 2005, could therefore be summarized as follows:-

(i) When a male Hindu dies after the commencement of the Hindu Succession Act, 1956, having at the time of his death an interest in Mitakshara coparcenary property, his interest in the property will devolve by survivorship upon the surviving members of the coparcenary (vide Section 6).

(ii) To proposition (i), an exception is contained in Section 30 Explanation of the Act, making it clear that .

____________________________

Exhibiting documents not sufficient but contents have to be proved _ Some recent case laws
**************************************************************************
Exhibiting of document _ Proof of contents _ Document does not get proved unless the conditions enumerated in Sections 65 and 66 are complied with _ Mere exhibiting of the document does not imply that the document is admitted in the evidence and is required to be read as it is _ Giving of exhibit to a document is only ministerial act and the party is not relieved of the burden to prove the contents. (See 2009 (11) LJSOFT 12)

Mere production of documents or exhibition thereof in the Court does not amount to proof of documents and contents thereof _ It does not amount to proof of truthfulness of the contents of the documents. (See 2013 (8) LJSOFT 135)

Secondary evidence _ Court is obliged to examine the probative value of the document produced or their contents and decide the question of admissibility of a document in secondary evidence _ Also the party has to lay down the factual foundation to establish the right to give secondary evidence where the original document cannot be produced _ Neither mere admission of a document in evidence amounts to its proof nor mere making of an exhibit of a document dispense with its proof, which is otherwise required to be done in accordance with law _ Genuineness, correctness and existence of the document shall have to be established during the trial. (See 2015 (12) LJSOFT (SC) 25)

Test identification parade held by the Executive Magistrate in presence of panchas _ Neither the Executive Magistrate nor the panchas were examined by the prosecution _ Contents of the panchanama cannot be said to be duly proved _ Said document, though exhibited, can not be used against accused No.2. (See 2015 (8) LJSOFT 104)

Recovery of amount _ Report regarding value of the work done by respondents _ Maker of the report was not available for recording his evidence as he had expired _ Merely because the document is marked as an exhibit does not by itself prove the contents of such document and as such it was incumbent upon the appellant to adduce corroborative evidence to substantiate the disclosures made in such report. (See 2012 (8) LJSOFT 150)

Appointment of Court Commissioner _ Report of Court Commissioner can be made a part of the record and exhibited if report is not objected to by the parties to the suit _ However correctness of contents of the report can only be proved by examining writer/author of document _ Mere production of report and it being admitted in evidence by itself does not prove contents of document or as to what investigations were carried out by the court commissioner _ Courts below were justified in ignoring commissioner's report along with its map on the ground of non-examination of the court commissioner as a witness. (See 2010 (9) LJSOFT 71)

Proof of documents _ Merely because a document referred to in cross-examination is marked as an exhibit the same does not dispense with the proof of document in accordance with law of evidence. (See 2009 (2) LJSOFT 97)

Spot panchanama _ Appellants nowhere admitted contents of spot panchanama _ Endorsement was made to dispense with the formal proof of documents and exhibit number was put on the said document _ Such endorsement neither results in admission of the documents nor it dispenses with the necessity of proving the contents of the documents. (See 2007 (4) LJSOFT 75)

____________________________

Where are women judges in Indian Supreme Court?..... The Supreme Court on April 11 frowned upon the practice of barring women between the ages of 10 and 50 years from the Sabrimala shrine in Kerala, asserting that religious practice and tradition could not be allowed to dent constitutional principles and values.

Questioning the validity of tradition which has been under attack from feminists and others, a bench of Justices Dipak Misra, V Gopala Gowda and Kurian Joseph said temple was a public religious place and it must observe the constitutional values of gender equality.

The judges said that the issue involved the question whether tradition could override the Constitution which prohibited gender discrimination. "Why this kind of classification for devotees to visit the temple? We are on constitutional principles. Gender discrimination in such matters is untenable. You cannot create corrosion or erosion in constitutional values," the benchsaid.

Such strong statements by the learned judges prompted the author to visit the websites of the Supreme and five key high courts to ascertain the extent of gender equality in the judiciary. Here is the status as on April 12, 2016.



Of the select courts, the percentage of women judges in Delhi High Court is the highest. Could the collegium system of the Apex Court find one only competent woman to be a judge? Did you know that from "1950 to November 2015 only six women became Supreme Court judges out of a total 229 judges appointed?"

India has had a woman prime minister and president but never a woman chief justice.

A November 2015 India Todayreport shares some interesting facts, "There are just 62 (9.2 per cent) women judges compared to 611 male judges (in high courts) in the entire country. In 24 state high courts, nine HCs did not have a single woman judge. Three high courts had only one woman judge." Is this a case of gender discrimination or does it imply that only male judges possess the best legal brains and women are incompetent?

Look at the number of women doctors in our country and compare them with the number of women judges. Some might argue that women have taken to education recently in larger numbers. This is not true. Women in this country began taking to modern education even before independence and the pace picked up thereafter in virtually all fields, for example, the author's mother and mother-in-law became doctors in the mid-1950s in Punjab and Madhya Pradesh respectively.

It can be argued that in the medical discipline, women doctors succeeded because they ran their own clinics or worked in hospitals where they did not need to navigate organisational politics. Fair point. All the more reason why India needs more women judges. Since they are grossly under-represented in terms of numbers, there is a clear case for affirmative action (not reservation). Certainly, there are enough women lawyers in all high courts who can be elevated to the bench.

According to a November 2015Mail Today report, when a five-judge Constitution bench headed by Justice Khehar was in the process of inviting suggestions to improve the collegium system for the appointment of judges, a large number of female lawyers complained of "gender discrimination" in appointment of judges to higher judiciary.

When faced with such complaints, the respected Justice Khehar asked, "We would first like to know what the ratio of female advocates to male advocates is. That is very important. The ratio of female judges to male judges must be in the same ratio."

I am inclined to respectfully disagree with this line of questioning. When under-representation of women in the judiciary is universally accepted, is it correct to compare the ratio of female to male advocates? Was the percentage reservation for schedules castes and tribes based on their population numbers or supposed backwardness?

Further, women lawyers told the court that would not be a fair criteria. "Please do not compare the number of women lawyers at bar and juxtapose it with the ratio of female and male judges. Women were allowed to practise in court only in 1922. Women face a lot of problems in practising in court. Despite that, they are coming out in large numbers to practice," said senior lawyer Mahalakshmi Pavani representing the Supreme Court Women Lawyers Association (SCWLA).

At the same meeting SCWLA alsorepresented, "It is submitted that keeping the Article 14 (right to equality) and Article 15(3) (the power of the State to make special provisions for women and children) of the Constitution Of "India is a signatory to Conventions on Elimination of Discrimination Against Women (CEDAW), 1979, which envisaged removal of obstacles of women's public participation in all spheres of public and private lives."  The source of Article 14 lies in the American and Irish constitutions. Before we get into the question of gender equality, we have to answer some fundamental issues on the Justice system and fundamental flaws relating to its practice in India.

1. How adapted is a British system of justice to an Indian culture, ethos, identity and practice? Is the understanding of gender equality the same in Indian and Western societies? Let me elaborate. It is a long term fundamental flaw in our system, which has not been addressed or has perhaps not even entered the consciousness of our western educated judicial practitioners. While all humans are created equal, it does not mean they are the same. Same and equal are two completely different concepts.

Equality in the Hindu system does not mean we have one toilet for men and women, one set of dresses for men and women.

Why India? It is the same worldwide. In Hindu philosophy, we say the soul of men and women does not have gender in its spiritual state. But for practical purposes, two sexes are created based on physical differences by the Gods. These differences at times have to be respected and catered to just like there are separate toilets for men and women. By doing so it does not mean we are disrespecting and abusing the notion of equality.

2. Now coming to the issue before the Apex Court on whether the current practice at the Sabrimala shrine, of barring women between the ages of 10 and 50 years, should be changed. Hindu Goddesses have a wider following than Hindu male gods in many parts of the country. In the same vein there are certain religious places that are men exclusive and in equal breath there are certain temples that are women exclusive.

There exists a women-only templein Kerala.  While 95 per cent of the temples are common to both sexes please understand that Hinduism treats both equally, and that does not mean that each and every function on earth has to be the same. At times for reasons of tradition, certain things are male specific and equally certain things have to be reserved for women. This is a fundamental difference between Indian and western thought.

If courts want to still force the issue of gender equality despite the arguments above they should do so. But keep in mind that the courts have to apply the law equally to all religions. That then would be real justice. The suggestion is either create a level playing field, or if the argument is that every community has its uniqueness, then let them cherish their uniqueness. You cannot have different rules for different people in the eyes of the law. We are repeating the mistakes made earlier by using British concepts of secularism and minorityism!

Are we willing to look within and change?

PS The author admires the judiciary for its role in exposing corruption and has full faith in its abilities to address issues in a fair and balanced way.

Aadhaar, net banking-based IT e-filing appeal system activated

Income Tax department has activated the Aadhaar and net banking-based e-filing verification system for taxpayers to file the first appeal before a tax officer, on similar lines of online ITR filing.

In order to reduce the interface between taxman and the taxpayer, the department has recently operationalised the maiden facility on its official e-filing portal.


One EVC can be used to validate one form of the assesse irrespective of the assessment year. The EVC will be stored against the assesse PAN along with other verification details.

The EVC will be valid for 72 hours or as otherwise specified,; a notification in this regard said.

The Electronic Verification Code (EVC) works by way of generating a personalised OTP by using the Aadhaar database or the net banking identity of a filer or entity. The OTP is subsequently sent to the personal email id or mobile phone of the filer for validation and subsequent process of filing.

The facility of filing the appeal form, like filing Income Tax Returns (ITRs), can also be done using a digital signature on the official web portal of the tax department --http://incometaxindiaefiling.gov.in/

The existing two-page document used for this, called Form No. 35, has been re-formatted by the department recently so that it can be electronically uploaded on the said e-filing portal.

In the new e-form, an applicant or taxpayer seeking appeal against an Assessing Officer's order has been given an avenue to append Statement of Facts in 1,000 words as also furnish the grounds of appeal in another 100 words.

Documentary evidence can also be appended to the new form by an assess using the internet-based facility.

The IT department has four stages of appeal mechanism for the assessees to put forth their grievance beginning with the Commissioner of IT (Appeals), the Income Tax Appellate Tribunal (ITAT), the High Court and finally the Supreme Court.

The new form is applicable for the CIT (Appeal) fora and those taxpayers who file e-returns will be eligible to use this new facility.

In view of launch of this facility and activation of a select category of ITRs last week, the taxman had also asked filers to update their profile and select higher security option to secure their e-filing account created over the portal.

Electronic filing of appeal along with the documents relied upon before CIT (Appeals) will remove human interface, reduce paperwork and decrease the transaction cost for the taxpayer. It would ensure consistent and error-free service as validations will be in-built, resulting in fewer deficient appeals. Online filing will also facilitate fixation of hearing of appeals electronically.

The new format for filing of appeals is more structured, objective, systematic and aligned with the current provisions of the Income tax Act, the Central Board of Direct Taxes had earlier said.

With these changes, it had said, the burden of compliance on the taxpayers in appellate proceedings will be significantly reduced.

Mother’s Name Has Been Provided in Form 49A, Form 49AA & Changes or correction in PAN data.

Mother’s Name Has Been Provided in Form 49A, Form 49AA & Changes or correction in PAN data.

NSDL/TIN/2016/008 - dated 1st April’16 whereby an optional field to mention mother’s name has been provided in Form 49A, Form 49AA & Changes or correction in PAN data. Copies of notifications and related guidelines are enclosed for your reference.

ITD has now advised to accept PAN applications submitted using revised Form 49A, Form 49AA & PAN change request form only. Copies of revised PAN application forms are enclosed.

Below are the highlights of changes done:

Father’s Name:- It is mandatory for Individual applicants to provide father’s name ( irrespective of mother name provided or not). Married woman applicant should also give father's name only

Mother’s Name:- This is an optional field for Individual applicants and should be blank for non-individuals.

Appropriate box should be selected to show the name (out of the father’s name and mother’s name given in the application form) to be printed on the PAN card.

If none of the option (Father’s/Mother’s name) is selected, then father’s name shall be considered as default for printing on the PAN card.

Below is the snapshot of Parents column in New Forms

For your convenience, 49A PAN card application form has been reduced from 3 pages to 2 pages for your ease. So we here by request all the TIN-FC to use the attached format of 49A.

Accordingly, the Annexure J and Annexure K of TIN-FC Operating Manual (TOM) have been modified.  The version of TOM after the aforesaid changes shall be 5.33.You may also view the circular-NSDL/TIN/2016/008   from your HO login in NSDL TIN Circulars in Online PAAM/SAM.

All TIN-FCs are Accept only ABove Changed Form so pls take note of the above and ensure compliance to all members, Thank you.

Key changes in new income-tax return forms // MONARCH // SUNIL RAJAI

Key changes in new income-tax return forms

1.0 Introduction

Every year CBDT notifies new Income-Tax Return (ITR) forms. However, in the recent past CBDT had notified ITR forms a bit late causing inconvenience to various tax practitioner and taxpayers in filing ITRs within prescribed time. Thus, we have witnessed a spate of writ petitions in the various High Courts for extension of due date of filing return.

The Delhi High Court in case of Avinash Gupta v. Union of India [2015] 63 taxmann.com 121 (Delhi) criticized the Government for its delay in notifying ITR forms every year. The Delhi High Court made following remarks:

There appears to be no justification for delay beyond the assessment year in prescribing the ITR forms. Accordingly, the respondents are directed to, with effect from the next assessment year, at least ensure that the ITR form should be available as on 1st April of the assessment year unless there is a valid reason therefor.

Thus, considering such suggestion of the High Court the Government has now notified the ITR forms, namely, ITR-1, ITR-2, ITR-2A, ITR-3, ITR-4, ITR-4S, ITR-5, ITR-6 and ITR-7 on March 31, 2016.

The Finance Act, 2015 abolished the wealth-tax. Thus, taxpayers are no longer required to file returns of wealth tax from assessment year 2016-17 onwards. However, the Hon'ble Finance Minister in his budget speech had announced that information which was to be furnished in wealth tax return will now form part of ITR.

Thus, in new ITR forms, namely, ITR-1, ITR-2, ITR-2A and ITR-4S the Government has imposed obligation on Individuals and HUFs having income exceeding Rs 50 lakhs to furnish information regarding assets and liabilities.

2.0 Changes made in new ITR forms:-

2.1 Declaration of value of assets and liabilities by Individuals/HUF earning above Rs 50 lakhs:-

[ITR 1, 2, 2A, 3, 4, 4S]

The new ITR forms introduce a new Schedule requiring individuals/HUFs to declare the value of assets and liabilities if their total income exceeds Rs. 50 lakhs. Assets include immovable assets and movable assets. Under the heading immovable assets, taxpayers have to disclose cost of land and building. Under movable assets cost of Jewellery, bullion, vehicles, Yachts, boats, aircraft and cash in hand need to be disclosed. Further, such taxpayers need to disclose all liabilities in relation to such assets.

Note: Individuals and HUFs with income exceeding 25 lakhs, filing ITR-3 and ITR-4 were already required to furnish information of their assets and liabilities. Now such threshold limit of 25 lakhs has been increased to 50 lakhs in new ITR-3 and ITR-4 for disclosure of details of assets and liabilities.

2.2     TCS credit for individual taxpayers:-

[ITR 1, 2, 2A]

Sub-section (1D) was inserted in Section 206 by the Finance Act, 2012 to reduce the practice of cash payments for purchase of bullion and Jewellery and for curbing the flow of unaccounted money in the trading system.

Section 206(1D) provides that the seller of bullion and Jewellery shall collect TCS at 1% of sale consideration from buyer if such sale consideration is received in cash and it exceeds:

   i)   Rs. 2 lakh, in case Bullion; and

  ii)   Rs. 5 lakh, in case of Jewellery.

However, in the absence of any row in the ITR Forms (ITR 1, 2 and 2A), individual taxpayers were unable to claim credit of such TCS. Therefore, new ITR Forms provide an option to claim TCS by the individual taxpayers.

2.3     Firms can file ITR-4S for presumptive income:-

[ITR-4S]

Under the existing provisions of Rule 12, firms were required to file ITR 5 even for presumptive income. The amended Rule 12 would now allow firms to file ITR 4S for presumptive income. Accordingly, a separate row is provided for in ITR 4S to claim deduction of interest and salary paid by the firms to the partners.

2.4     Additional deduction for contribution to NPS under Section 80CCD :-

[ITR 1, 2, 2A, 3, 4 and 4S]

A new sub-section (1B) was introduced in Section 80CCD by the Finance Act, 2015 to provide for an additional deduction of upto Rs. 50,000 for investment in National Pension Scheme. Accordingly, a new row is now introduced in the ITR Forms to claim benefits of such additional deduction.

2.5     Details of pass through income of business trust or investment fund:-

[ITR 2, 2A, 3, 4, 5, 6, 7]

As per provisions of Section 115UA and Section 115UB,pass through status is provided in respect ofincome [other than income from business or profession] of business trust/investment fund. Thus, income distributed by the business trust/investment fund is to be taxed in the hands of the unit holders.

The new ITR Forms have a new 'Schedule PTI' forreporting of pass through income of business trust/investment fund. Following details should be provided by such trustin ITR forms:

  ■  Name of business trust/investment fund

  ■  PAN

  ■  Head of income

  ■  Amount of income

  ■  TDS on such amount, if any.

2.6 Disclosure of details regarding partnership firm by a partner:-

[ITR 3, 4]

In ITR forms there is a separate 'Schedule IF' wherein partners are required to disclose the name of the partnership firms in which he is a partner. Now partners have to disclose whether such firm is liable to transfer pricing audit under Section 92E? Separate column has been inserted for such purpose in 'Schedule IF'.

2.7 Share of income from firm/AOP/BOI:-

[ITR 3, 4, 5, 6]

Share of income from partnership firm, AOP and BOI is exempt from tax in hands of recipient. However, such exempt income hadto be disclosed in old ITR forms under 'Schedule EI'. Now, disclosure of such exempt income has been done away with in new ITR forms.

2.8 Deduction of additional investment allowance:-

[ITR 4, 5, 6]

Section 32AD was inserted by the Finance Act, 2015 to provide for an additional investment allowance to an undertaking set-up in the notified backward areas in the States of Andhra Pradesh or Telangana.Suitable safeguards have been provided in the provision for restricting the transfer of the plant or machinery for a period of 5 years. On transfer of such asset within five years, the amount of deduction already allowed shall be deemed as income from business or profession (i.e., deemed income under Section 32AD) in the year of transfer.

A separate rowhas been inserted in new ITR forms to claim such deduction under Section 32AD. Further, a separate row is provided to offer the deemed income to tax under Section 32AD.

2.9 Effect of ICDS:-

[ITR 4, 5, 6]

New 'Schedule ICDS' has been inserted in ITR forms wherein effect of Income Computation and Disclosure Standards('ICDS') on profit needs to be disclosed.

2.10    Percentage of commercial receipts by a trust:-

[ITR 7]

The Finance Act, 2015 has substituted the proviso to Section 2(15) to provide that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, unless:

   i)   such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and

  ii)   the aggregate receipts from such activity or activities during the previous year, do not exceed 20% of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year.

In other words, advancement of any other object of charitable purpose shall not be deemed as charitable if receipts from any commercial activity exceed 20% of total receipts. Accordingly, a new row is inserted in ITR 7 to disclose percentage of commercial receipts vis-à-vis total receipts in order to ensure that such condition (as given hereinabove) is not violated.

2.11    Application of income by a trust:-

[ITR 7]

Income of charitable or religious trust is exempt if 85% of its income is applied for charitable or religious purposes in India. If income applied for charitable or religious purposes during the previous year falls short of 85% because such income has not been received during the year or due to any other reason, an option is given to assessee to apply such income in future years in prescribed manner. Assessee has to choose such an option by filing Form 9A to the Assessing Officer before due date of filing return of income under Section 139(1).

Now a separate row is provided in new ITR 7 requiring trust to confirm if it has filed Form 9A to exercise such an option and the date of filing of such form.

2.12    Details to be given by Universities, hospitals, educational institutions:-

[ITR 7]

Exemption under sub-clause (iiiab) and (iiiac) of Section 10(23C) is available to universities or educational institutions, hospitals or other institutions which are wholly or substantially financed by the Government, subject to certain prescribed conditions.The Finance Act, 2015 has amended the provisions of Section 139 to provide that such entities covered under clauses (iiiab) and (iiiac) of Section 10(23C) shall be mandatorily required to file their returns of income.

Now such universities, hospitals, educational institutions, etc., have to disclose their name and annual receipts in new ITR 7. Further, they are also required to disclose the amount eligible for exemption in ITR 7.

2.13    MAT disclosure:-

[ITR-6, 7]

The Finance Act, 2015 had excluded following incomes for computing MAT liability:

   i)   Share of a member in the income of the AOP/BOI, on which no income-tax was payable.

  ii)   Passive income (like capital gains, interest, royalty, FTS) accruing or arising to foreign company if income-tax payable thereon was less than 18.5%.

 iii)   Amount representing

    -   Notional gain on transfer of a capital asset, being share of SPV to a business trust in exchange of units allotted by that trust referred to in clause (xvii) of Section 47; or

    -   Notional gain resulting from change in carrying amount of said units; or

    -   Gain on transfer of units referred to in clause (xvii) of section 47.

 iv)    Loss on transfer of units referred to in Section 47(xvii) (subject to conditions)

Consequently, the Finance Act, 2015 had provided for addition of related expenditure on aforesaid income while computing MAT liability.

Separate row have now been inserted in ITR forms to incorporate such changes.

2.14    Disclosure of Audit information:-

[ITR 5, 6]

In new ITR forms there is a separate row for disclosure of following details if taxpayer is liable for audit under any Act [other than the Income Tax Act]:

  1)    Act and Section under which taxpayer is liable for audit

  2)    Date of furnishing of Audit Report.

2.15 Deduction of sum paid for purchase of sugarcane:-

[ITR-5]

The Finance Act, 2015 had inserted Section 36(1)(xvii) to provide that co-operative society, engaged in the business of manufacturing of sugar,couldclaim deduction of expenditure on purchase of sugarcane tothe extent of price approved or fixed by the Government. Expenditure in excess of such fixed price was tobe disallowed.

New ITR-5 has inserted a separate row for disclosure of sum which is disallowable under Section 36(1)(xvii).

2.16 Deduction under section 80JJAA:-

[ITR 4, 5]

Old provisions of section 80JJAA, inter alia, provided for deduction to an Indian company, deriving profits from manufacture of goods in a factory. The quantum of deduction allowed was equal to 30% of additional wages paid to the new regular workmen employed by the assessee in such factory, in the previous year, for three assessment years including the assessment year relevant to the previous year in which such employment was provided.

With a view to encourage generation of employment, the Finance Act, 2015 had amended Section 80JJAA so as to extend the benefit of such provision to all assessees having manufacturing units rather than restricting it to corporate assessees only.

New ITR-4 and ITR-5 forms now contain a separate row for such taxpayers (other than corporate taxpayers)to claim benefit of such deduction under Section 80JJAA.

Source :.Taxmann.com


Sent from my iPhone