Check Your Tax Office Jurisdiction Before Filing Returns

Check details about your new tax assessment range if you are going to file income tax returns, apply for refunds or conduct any I-T related business in future.

A huge cadre restructuring in the I-T department, with the creation of over 20,700 posts recently, has brought about a number of changes in the existing jurisdictions of assessing officers (AOs) of the department across the country.

"A huge cadre restructuring has been effected in the Income Tax department across the country recently. With new posts and charges in place, a number of taxpayers will find that their AOs and assessment jurisdictions have changed. But there is nothing to panic," a senior officer in the department said.

Taxpayers, the officer added, should check their new jurisdictions by undertaking a simple search on the designated I-T online portal which shows an individuals' or taxpayers' AO by punching PAN card details.

One can log on to www.incometaxindiaefiling.gov.in and click the link 'know your jurisdictional AO' to check under what assessment range their I-T cases would be assessed in the future. The department's Systems wing has already punched and put in place unique details of every permanent account number (PAN).

"Not everyone's AO would have changed under the new exercise but it is recommended that the taxpayers undertake this simple step of checking their AO by using their PAN card details. In case of online filing of I-T returns, the system will automatically find the AO of the filer," the officer said.

The officer also said that the "aim of the restructuring is to check the skewed distribution of posts in the department and to ensure identical hierarchal structure so that the department can effectively tackle taxpayers grievances and issues and ensure better tax collection".

The government had approved the ambitious cadre restructuring of the department in May, 2013 and had created 20,751 posts, in various ranks, in the department.

According to an earlier blueprint prepared to implement this proposal on the ground, the I-T department hopes to mop up additional revenue of more than Rs 25 crore by opening 1,080 assessment offices for taxpayers and increasing the number of tax collectors in every office.

According to the blueprint, the number of assessment units of the department would be "increased by 1,080 from 3,420 to 4,500 for strengthening the tax administration".

The restructuring of the department also aims to expand the reach of those I-T offices which deal with "critical" areas of international tax, investigations, and TDS (tax deducted at source) as the action undertaken by these wings add to the revenue collection in a big way.

Budget 2014 : Highlights

Following are the highlights of the Union Budget 2014-15 presented by Finance Minister Arun Jaitley in Parliament on July 10, 2014

Income-tax exemption limit raised by Rs. 50,000 to Rs. 2.5 lakh and for senior citizens to Rs. 3 lakh

Exemption limit for investment in financial instruments under 80C raised to Rs. 1.5 lakh from Rs. 1 lakh.

Investment limit in PPF raised to Rs. 1.5 lakh from Rs. 1 lakh

Deduction limit on interest on loan for self-occupied house raised to Rs. 2 lakh from Rs. 1.5 lakh.

Committee to look into all fresh tax demands for indirect transfer of assets in wake of retrospective tax amendments of 2012

Fiscal deficit target retained at 4.1% of GDP for current fiscal and 3.6% in FY 16

Rs. 150 crore allocated for increasing safety of women in large cities

LCD, LED TV become cheaper

Cigarettes, pan masala, tobacco, aerated drinks become costlier

5 IIMs to be opened in HP, Punjab, Bihar, Odisha and Rajasthan

5 more IITs in Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala.

4 more AIIMS like institutions to come up in AP, West Bengal, Vidarbha in Maharashtra and Poorvanchal in UP

Govt proposes to launch Digital India’ programme to ensure broad band connectivity at village level

National Rural Internet and Technology Mission for services in villages and schools, training in IT skills proposed

Rs. 100 cr scheme to support about 600 new and existing Community Radio Stations

Rs. 100 cr for metro projects in Lucknow and Ahmedabad

Govt expects Rs. 9.77 lakh crore revenue crore from taxes

Govt’s plan expenditure pegged at Rs. 5.75 lakh crore and non-Plan at Rs. 12.19 lakh crore.

Rs. 2,037 crore set aside for Integrated Ganga Conservation Mission called ‘Namami Gange’

Kisan Vikas Patra to be reintroduced, National Savings Certificate with insurance cover to be launched

FDI limit to be hiked to 49% pc in defence, insurance

Disinvestment target fixed at Rs. 58,425 crore

Gross borrowings pegged at Rs. 6 lakh crore

Contours of GST to be finalised this fiscal; Govt to look into DTC proposal.

‘Pandit Madan Mohan Malviya New Teachers Training Programme’ launched with initial sum of Rs. 500 crore

Govt provides Rs. 500 crore for rehabilitation of displaced Kashmiri migrants

Set aside Rs. 11,200 crore for PSU banks capitalisation

Govt in favour of consolidation of PSU banks

Govt considering giving greater autonomy to PSU banks while making them accountable

Rs. 7,060 crore for setting up 100 Smart Cities

A project on the river Ganga called ‘Jal Marg Vikas’ for inland waterways between Allahabad and Haldia; Rs. 4,200 crore set aside for the purpose.

Govt proposes Ultra Modern Super Critical Coal Based Thermal Power Technology

Expenditure management commission to be setup; will look into food and fertilizer subsides

Impasse in coal sector will be resolved; coal will be provided to power plants already commissioned or to be commissioned by March 2015

Long term capial gains tax for mutual funds doubled to 20%; lock-in period increased to 3 years

Rs. 4,000 cr set aside to increase flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment.

EPFO to launch the ‘Uniform Account Number’ service to facilitate portability of Provident Fund accounts

Mandatory wage ceiling of subscription to EPS (Employee Pension Scheme) raised from Rs. 6,500 to Rs. 15,000

Minimum pension increased to Rs. 1,000 per month

The Budget 2014 seems to be promising for the all taxpayers allowing them to save more taxes on income. There has been increase in the limit of certain exemptions which will further reduce the tax burden of the individuals who can avail the benefit. A proper planning can help you lower your taxable income by Rs. 1.5 Lakhs to save greater amount of taxes depending on the tax slab of the individual. An Individual under higher slab will save more than the individual falling at lower tax slab. Tax Slab increased to Rs. 2.5 Lakhs for normal citizen and Rs. 3 Lakhs for senior citizen Income earned by an individual is chargeable to tax as per the slab they fall in. Individuals below the age of 60, exemption limit was previously Rs. 2 Lakhs which has been increased to Rs. 2.5 Lakhs. Resident Senior citizen exemption limit has been increased from Rs. 2.5 Lakhs to Rs. 3 Lakhs. This will increase the take home pay of small taxpayers. Now, Individuals can now let go their tax worry if they are earning below Rs. 2.5 Lakhs. This hike in the tax slab will help save a maximum of Rs. 5000 of taxes for every individual having taxable income above Rs. 2 Lakhs. This benefit of upto Rs. 2.5 lakhs can be availed by Non-Residents as well. 80C Investment limit hiked to Rs. 1.5 Lakhs The investment in 80C provides a list of tax saving investments. Individuals can invest in the listed investments like PPF, LIC, Housing Loan Principal Re-payment, Tuition Fees, FD, MF, etc. Previously individuals found this limit very small as they invested more but got benefit only upto Rs. 1 Lakh. Increase in the limit has given some relaxation to individuals who have investment more than Rs. 1 Lakh in such investment. Rightful Investment can now reduce the tax liability of Individuals by a maximum of Rs. 50000. An individual falling under a greater tax slab can save upto Rs. 15000 of his pay from being deducted as taxes. Invest in PPF upto 1.5 Lakhs to get tax benefit People invest in PPF as it is the most efficient tax saving investment as it gives 3 benefits at a time. The investment can be claimed under 80C to save taxes. Further, interest income is also exempt from tax and the income received on maturity is also tax free. The PPF investment limit was previously Rs. 1 Lakh which has now been raised to Rs. 1.5 Lakhs. This will allow Individuals to invest more in PPF each year and save more taxes. Further, with the increase in the limit of 80C from Rs. 1 Lakh to 1.5 Lakhs, Individuals can get additional investment benefit also each year and reduce their taxable income by a maximum of Rs. 50000 each year. This will help them to save a maximum of Rs. 15000 of taxes depending on the tax slab of the individuals. Save more on Housing Loan The Govt. has been encouraging Individuals to invest more on House Property. They have been giving greater benefits on Housing Loan by exempting payment of interest as well as principal part of the loan. Budget 2013 introduced a new section 80EE giving additional benefits of Rs. 1 Lakh on interest payment to Individuals who were taking housing loan for the first time. The section had certain conditions which were mandatory to avail the benefit. Many failed to take the benefit of section 80EE.The Budget 2014 has simply increased the exemption limit of Rs. 1.5 Lakhs u/s 24(b) to Rs. 2 Lakhs against payment of interest for a self occupied property. The repayment of housing loan is also exempt from taxes upto Rs. 1 Lakh under 80C. The Budget 2014 has also increased the limit of 80C allowing individuals to claim more exemption and save taxes. This will only benefit individuals who have not used up their 80C limit for some other investment. The Budget 2014 can help individuals to claim an additional benefit of Rs. 1 Lakh against housing loan for both interest and principal component. This will save the tax liability by Rs. 10000 which can be a great relief to the taxpayers. The individuals can save a maximum of Rs. 30000 of taxes depending on the slab of the individuals. The individuals falling under the slab of 30% can reduce their taxable income by maximum of Rs. 100000 and save huge taxes. To Conclude: The small and marginal taxpayers are to be benefited with the amendments brought in by Budget 2014 but Individuals at a higher slab can save greater taxes. The increase in the exemption limit of different section has given the opportunity of availing more tax exemptions with proper planning. Individuals should invest more in PPF and avail housing loan benefits if they are planning to invest in a new property as these options will help them reduce tax liability to a great extent. Individuals should start planning for the FY 14-15 to invest smartly and reduce their income tax liability to save more taxes.

Read more at: http://www.moneycontrol.com/news/tax/how-will-budget-2014-impact-you_1127771.html?utm_source=ref_article

WHAT WE CAN LEARN FROM WEST

I had six month training in Germany from the period May to October 2013. I can simply say it has been fabulous.  The approach and confidence what I had was different before and after Germany station.  In the period of 6 months, I had a really good learning time from both professional and personal point of view and it has brought in a quite a lot of transformational change in the way I perceive things now. My Major Learnings are given as below.

Projects and Tasks

Projects and tasks are given in such a way that the activity is independent. The dependence on other people is less.  Timeline of projects and tasks are defined taking in to consideration all risks and the capacity of the employee.  

Trainings

Germans  have a well defined training program for any trainee who joins the department.  Trainings are given based on the profile defined for the trainee. Along with this an overview is given on all the processes and functional area of the department.  What I really enjoyed the most was the Mandatory Shop floor rotation every trainee has to undergo.  It gave me a very good understanding of the product and was of great help in my day to day work. Also during my discussions with manufacturing and sales team, I could relate about the component or pumps being spoken about. 

Effective Meetings

The Meetings are conducted in a highly professional manner. The meetings start and end at time. There is a very well clear defined objective of the meeting and the same is obtained at the end of the meeting. Also Whenever I required support from people, if it would take more than 5-10 mins of their time, then a meeting time is called for as they would have planned for some other activity at the same time. Every person has his/her calendar time blocked so that he/she can plan for their tasks.  I really liked this approach.

We could have lunch with other people in the canteen during lunch hours. This is not taken in negative way as personal space is given to us, which can be taken as otherwise in India.

Knowledge Sharing

The impartation of knowledge transfer from one to another is really well directed.  Sharing of knowledge allows the imparter to move from one department to another.  People are reluctant to share knowledge in India. Sharing of knowledge leads to insecurity among people. 

Discipline

Working with Germans, brings in lot of discipline within one self.  Germans speak straight and do not beat around the bush. Talks are limited but meaningful.  The office life and private life is separated and is different.

Communication and transparency

I am amazed with the level of communication and transparency in Germany.  Whether it is top down or bottom up approach, we always knew the relevance of message being conveyed.  Even during our weekly department meetings, group leader tells us about his important upcoming activities and meetings so that department can work towards it. Also at the same time our activities are discussed for the week and support is provided or given wherever required. If there is an important assignment from the management, the deadlines are discussed and message is passed on to the team. There is openness among people on various topics which leads to a healthy communication.

Leave Policy

If anyone wants to take leave in the department, he/ she informs in advance about it to group leader.  Group leader is happy as the information is given in advance.

Proxy setup

Germans have a well defined proxy system, where any employee can take leave for various reasons without the work of the plant being affected.  Another fascinating point is that an employee is not disturbed if he/ she is on leave as it is considered as their personal time.

SAYING NO

When we have more work than the normal capacity hours, we can approach our supervisor and communicate the same. He then goes through the task what we have and redistributes the work based on his understanding. This is well appreciated if we inform the same in advance and not at the end moment.  In India, saying no means that either people don’t work or are inefficient. Saying no could lead to various problems in India.

E-Mail and Follow-ups

Another interesting learning curve is that a reply will be obtained from the person even if we have not met him/her.  I have never had any problems with regards to follow up of emails or other information. The information was received timely.

People from the plant or even the HR provide information within 8 working hours. If the requirement takes time, then e-mail is sent specifying by when such information would be provided. In India, you have to personally go and see the person to get the information. Even after 10 reminders information may still not be available.  Follow-ups lead to unnecessary wastage of time and money. 

Conclusion

Personally I have learnt a lot for my own day to day activities, from washing and ironing cloths, cooking food to travelling the world. It has broadened my horizon and thinking. I believe, 6 months of German Experience has enriched me to see India and life from a different perspective.  It has been an amazing journey. I would like to thank everyone who made this possible.

SOCIAL NETWORKING

Social networking seems to be the latest buzz in e-network.  It’s everywhere. Today it is an inevitable and an invincible part of our lives.  This has happened or rather happening because it helps us to connect to family, friends living in different parts of world.  We are able to know what they are doing in terms of personal and professional achievements.  There may be people with whom we would have lost contact at childhood as they would have moved to another place. It gives a great sense of joy and happiness when we are able to connect to them after many years of being away from each other. 

With the help of social networking, students are able to organise events, alumni’s are able to have reunion, corporates are able to launch their products/ services in big scale, social activists can bring the whole country together.  Social networking has matured and gone a long way beyond connecting friends and family.

It is also a medium where the service provider garners business revenues through advertising.  Companies use this medium to nullify the negative images spread by media.   Many people use this platform to find jobs and obtain recommendations on same. LinkedIn is one famous site for the same. It has opened doors of opportunity for many. It is also a tool which people use it for brand building of self.  Through social networking it created awareness among people of the wrong doings by agencies (Lokpal bill movement) and people (Nirbhaya case). 

It is of paramount importance that social networking is used in rightful manner as misuse of it could lead to serious repercussions with the Cyber Act in place. Be safe than sorry.

Social networking is here to stay.