Form No. 16 for Pensioners : Issue Certificate of Tax Deducted in Form 16 to the Pensioners

Form No. 16 for Pensioners : Issue Certificate of Tax Deducted in Form 16 to the Pensioners

Clarifications regarding use of Form No. 16 for pensioners where pensioners are drawing their pensions through banks – CBDT Circular No.761, dated 13.1.1998

1184. Clarifications regarding use of Form No. 16 for pensioners where pensioners are drawing their pensions through banks

1. The attention of the Board has been drawn to certain difficulties being faced by pensioners drawing their pensions through banks where the tax deduction at source certificate in the prescribed Form No. 16 is some-time denied to them on the ground that no employee-employer relationship exists between the banks and the pensioner. At times, objections have also been raised by the banks on the premise that Form No. 16 relates to deductions from salaries and not from pensions. In other cases, the certificates have been denied on the ground that the bank was not aware of any other income which the pensioner may have had.

2. The matter has been considered by the Board. It is hereby clarified that :—

(a) as per section 17(1)(ii) of the Income-tax Act, 1961, the term ‘salary’ includes pension;

(b) once tax has been deducted under section 192 of the Income-tax Act, 1961, the tax-deductor is bound by section 203 to issue the certificate of tax deducted in Form 16. No employee-employer relationship is necessary for this purpose;

(c) the certificate in Form No. 16 cannot be denied on the ground that the tax deductor is unaware of the payees’ other income.

3. These clarifications may be brought to the notice of all concerned, especially the banks in your region.

Circular : No. 761, dated 13-1-1998

Authority: Income Tax Department

Finance Minister conveys Government’s Appreciation to tax payers for their contribution towards Nation building

Income Tax Department Starts giving Certificate of Appreciation

Government of India 
Ministry of Finance 
Department of Revenue 
Central Board of Direct Taxes

New Delhi, 19th September, 2016.

Press Release

Sub: Finance Minister conveys Government’s Appreciation to tax payers for their contribution towards Nation building.

The Government acknowledges the contribution of individual tax payers in paying taxes within the prescribed time and prompt filing of Income Tax Returns. The Honourable Finance Minister, Shri Arun Jaitley today handed over certificates of appreciation issued by CBDT honoring select tax payers for such contribution. While it is widely acknowledged that the Nation meets its obligations towards spending in various social sector and welfare schemes and infrastructure development out of revenues mobilized through tax payments by millions of honest tax payers, this step marks the first effort by the Government to directly communicate to the tax payer its appreciation for that contribution.

CBDT will be sending out such certificates of appreciation to individual tax payers by e-mail in various categories on the basis of the level of taxes paid by them for the current Assessment Year 2016-17 where taxes have been paid in full and tax payers have no outstanding tax liabilities and where the return is e-filed within the prescribed due date. The tax payers may display these certificates in their homes / offices.

The categories for individual taxpayers and the number of certificates being issued in the first round are:

1	Platinum	Tax  contributed Rs. 1 Crore and above
2	Gold	Tax contributed Rs. 50Lakh to Rs. 1 Crore
3	Silver	Tax contributed Rs. 10Lakh to Rs.50 Lakh
4	Bronze	Tax contributed Rs. 1Lakh to Rs.10 Lakh

 
The CBDT urges taxpayers to e-file their returns in time and verify their return by submitting the Electronic Verification Code online or sending their ITR-V within the 120 day period so that they can be also acknowledged for their contribution.

The Department is committed to continuous improvement of taxpayer services and seeks the cooperation of all taxpayers in contributing their fair share of taxes voluntarily.

sd/-
(Meenakshi J Goswami) 
Commissioner of Income Tax 
(Media and Technical Policy) 
Official Spokesperson, CBDT.

Source : http://www.incometaxindia.gov.in/

Claiming of medical expenditure for tax purposes made easy

Claiming of medical expenditure for tax purposes made easy

One of the pillars of the of the taxation proposals included in the Finance Minister’s Budget Speech for 2015-16 was extension of benefits to the middle class. In this process, the Finance Minister announced extension of certain benefits in respect of medical treatment under section 80DDB. This section allows a deduction for expenditure incurred on treatment of specified ailments.

Taking the process forward, Central Board of Direct Taxes (CBDT) has issued a Notification vide S.O. No.2791 (E) on 12th October 2015 amending Rule 11DD. The amended Rule relaxes the condition of obtaining the certificate for claiming expenditure under section 80DDB in respect of specified ailments from a specialist working in a Government hospital. As per amended Rule 11DD, the prescription can be issued by any specialist mentioned in the amended Rule. Henceforth, it will not be mandatory to obtain a certificate from a specialist working in a Government hospital.

The Notification is available on the website of the Income Tax Department www.incometaxindia.gov.in .

Source : PIB News

The Central Board of Direct Taxes , Extended the due date of filing return of income for AY 2015-16 from 31st July 2015 to 31st August 2015

Extension of due date of filing return of income for Assessment Year 2015-16

G.I., Department of Revenue, Central Board of Direct Taxes, O.M.F.No.225/154/2015/TA.II, dated 10.6.2015

Order under Section 119 of the Income-tax Act 1991

Subject- Extension of due date of filing return of income for Assessment Year 2015-16 – regarding;

The Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the income-tax Act. 1961, hereby extends the ‘due-date‘ for filing Returns of income, in terms of clause (c) of Explanation 2 to sub-section (1) of section 139 of the income-tax Act 1961, for Assessment Year 2015-16 from 31st July. 2015 to 31st August, 2015 in respect of income tax assessees concerned.

Authority : CBDT