Friday, November 6, 2009

DUE DATES - INCOME TAX ACT

STATEMENT SHOWING DUE DATES OF DEPOSIT OF TAXES AND RETURNS WITH FORM &CHALLAN NUMBERS


MONTH/DT PARTICULARS FORM NO., CHALLAN NO. ETC.


April 7 Submission of Form for No TDS & TCS of March. Form No.15-H,
15-G,27-C

7 Payment of TDS from 1st March to 30th March. Challan No.ITNS-281

7 Payment of TCS from 1st March to 31st March. Challan No.ITNS-281

25 Filling of Half Yearly Service Tax return. Return No.ST-3

30 Filling of Quaterly TCS return for Quarter ended on March.From 27 EQ


May 5 Payment of Service Tax of April.for Companies Challan No.TR-6

7 Submission of Form for No TDS & TCS of April. Form No.15-H,
15-G,27-C

7 Payment of TDS & TCS from 1st April to 30th April. Challan No.ITNS-281

31 Payment of TDS of 31st March. Challan No.ITNS-281


June 5 Payment of Service Tax of May for Companies. Challan No.TR-6

7 Submission of Form for No TDS & TCS of May. Form No.15-H,
15-G,27-C

7 Payment of TDS & TCS from 1st May to 31st May. Challan No.ITNS-281

14 Filling of Quarterly TDS return of NRI for Quarter ended on March. Form No. 27

15 Filling of Quaterly TDS return for Quarter ended on March. Ret.No.No.24Q,26Q,27EQ



15 Advance Fringe Benefit Tax(FBT) for Companies (15%). Challan No.ITNS -283

15 Advance Income Tax for Companies (15%). Challan No.ITNS-280

30 Returns by the bank for interest paid less than
Rs.5000 for Mar qtr. Form No. 26QAA

30 Filimg of Annual return for Non Deduction of TDS
on Transport Form No.15J


July 5 Payment of Service Tax of June for Companies . Challan No.TR-6
5 Payment of Service Tax of June Quarter for
Firms & proprietor. Challan No.TR-6

7 Payment of TDS & TCS from 1st June to 30th June. Challan No.ITNS-281

7 Submission of Form for No TDS & TCS of June. Form No.15-H,
15-G,27-C

14 Filling of Quaterly TDS return of NRI Quarter
ended on June. Return No.27

15 Filling of Quaterly TDS /TCS return for Quarter
ended on June. ReturnNo.24Q,26Q,27EQ

31 Returns by the bank for interest paid less
than Rs.5000 for June qtr. Form No. 26QAA

31 Filing of I.T. return for Firms,AOPs, BOIs(inc FBT) Form No ITR.-5

31 Filing of I.T. Return for other than Company
u/s 139(4A)or (4B)or (4C)or 4D including FBT. Form No ITR.-7

31 Filing of FBT return for Firms without
Audit(only FBT Return )Form No ITR -8

31 Filling of I.T. Returns for Individual , HUF
(without Audit) Form No. ITR-1,2,3,4

Aug 5 Payment of Service Tax of July for Companies. Challan No.TR-6

7 Payment of TDS & TCS from 1st July to 31st July. Challan No.ITNS-281

7 Submission of Form for No TDS & TCS of July. Form No.15-H,
15-G,27-C

31 Annual Information return Form 61-A


Sept 5 Payment of Service Tax of August for Companies. Challan No.TR-6

7 Payment of TDS & TCS from 1st August to 31st August. Challan No.ITNS-281

7 Submission of Form for No TDS & TCS of August. Form No.15-H,
15-G,27-C

15 Advance Fringe Benefit Tax(FBT) for Companies
and Firms (30%). Challan No.ITNS -283

15 Advance Income Tax for Companies(30%), Firms,
Individuals, HUF Challan No.ITNS-280

30 Filing of FBT return of Audited Cases (Only FBT Return) Form No ITR -8

30 Filing of I.T. Return for Audited Firms,AOPs, BOIs(inc FBT) Form No ITR.-5

30 Filing of I.T. Return for Company u/s 139(4A)or (4B)or
(4C) or (4D) Form No ITR.-7

30 Filling of I.T. Returns of Company Audited cases (inc FBT)Form No ITR.-6

30 Filling of I.T. Returns of Audited Individual ,HUFs Form No. ITR- 3,4



Oct 5 Payment of Service Tax of September for Companies. Challan No.TR-6

5 Payment of Service Tax of September Quarter for
Firms & proprietor. Challan No.TR-6

7 Payment of TDS & TCS from 1st September to 30th SeptemberChallan No.ITNS-281

7 Submission of Form for No TDS & TCS of September. Form No.15-H,
15-G,27-C

14 Filling of Quaterly TDS return of NRI Quarter
ended on September Return No.27

15 Filling of Quaterly TDS /TCS return for Quarter
ended on September ReturnNo.24Q,26Q,27EQ

25 Filling of Half Yearly Service Tax return.
(From April to September) Return No.ST-3

31 Returns by the bank for interest paid less than Rs.5000
for Sept qtr Form No. 26QAA



Nov 5 Payment of Service Tax of October for Companies. Challan No.TR-6
7 Payment of TDS & TCS from 1st October to 31st October. Challan No.ITNS-281

7 Submission of Form for No TDS & TCS of October. Form No.15-H,
15-G,27-C


Dec 5 Payment of Service Tax of November for Companies. Challan No.TR-6

7 Payment of TDS & TCS from 1st November to 30th November.Challan No.ITNS-281

7 Submission of Form for No TDS & TCS of November. Form No.15-H,
15-G,27-C

15 Advance Fringe Benefit Tax(FBT) for Companies
and Firms (30%). Challan No.ITNS -283

15 Advance Income Tax for Companies(30%), Firms,
Individuals, HUF Challan No.280



Jan 5 Payment of Service Tax of December for Companies. Challan No.TR-6

5 Payment of Service Tax of December for Firms & Proprietor.Challan No.TR-6

7 Payment of TDS & TCS from 1st December to 31st December. Challan No.ITNS-281

7 Submission of Form for No TDS & TCS of December. Form No.15-H,
15-G,27-C

14 Filling of Quaterly TDS return of NRI quarter
ended on December Return No.27

15 Filling of Quaterly TDS /TCS return for Quarter
ended on December ReturnNo.24Q,26Q,27EQ

31 Returns by the bank for interest paid less than Rs.5000
for Dec qtr Form No. 26QAA



Feb 5 Payment of Service Tax of January for Companies. Challan No.TR-6

7 Payment of TDS & TCS from 1st January to 31st January. Challan No.ITNS-281

7 Submission of Form for No TDS & TCS of January. Form No.15-H,
15-G,27-C



Mar 5 Payment of Service Tax of February for Companies. Challan No.TR-6

7 Payment of TDS & TCS from 1st February to 28th February.Challan No.ITNS-281

7 Submission of Form for No TDS & TCS of February. Form No.15-H,
15-G,27-C

15 Advance Fringe Benefit Tax(FBT) for Companies and Firms (25%).Challan
No.ITNS -283

15 Advance Tax for Companies(25%), Firms, Individuals, HUF (40%)Challan No.280

31 Payment of Service Tax of March for all. Challan No.TR-6

Long term capital gains on sale of residential house

Section 54 - Long-term capital gains on sale of residential house invested in purchase/ construction of another residential house (subject to certain conditions and limits).
[CAPITAL GAIN TO BE INVESTED IN PURCHASE OR CONSTRUCTION ]
[ SALE TO INDIVIDUAL OR HUF ONLY ]

Section 54EC - Capital gains on transfer of long-term capital assets invested in specified assets (bonds) in six months. [ CAPITAL GAIN TO BE INVESTED IN BONDS OF NHAI & REC ]

From 1.4.2006, investment can be made only in notified bonds of NHAI and REC.

Section 54F - Capital gains on transfer of long-term capital asset other than residential house, invested in residential house, subject to certain conditions. [ net consideration to be invested in purchase of house – 2 yrs. After // Construct in 3 yrs.] [even purchase before 1 yr. ]

( Invest net consideration in Capital Gains Account Scheme To Save Tax before due date of ITR. )


New house should be purchased within 1 year or constructed within 3 years.

You can open a Capital Gains Account Scheme in banks where it is available.
Deposit your capital gains in this account. You have to utilize this amount within 2 years for purchasing a house or within 3 years for constructing a house from the date of sale.
If this deposit is utilized for the specified purpose within the specified period then no advance tax is required to be paid on the gains.
The deposit in the CGAS has to be made by the investor before the last date of filing his ITR for the relevant year.

In case you do not wish to invest the gains in property, then the first day of paying advance tax is 15th of September.





How To Use Capital Gains Account Scheme To Save Tax?
What Is Capital Gains Account Scheme?
If you get long term capital gains , Income Tax Act provides certain exemptions under section 54,54B,54D,54F and 54G .In short these exemption are for capital gains earned on account of
• Sale of a residential house (Sec 54)
• Sale of agricultural land (Sec. 54B)
• Compulsory acquisition of land & building (Sec. 54D)
• Sale of any long term capital asset (Sec. 54F)
• Transfer of assets in case of shifting of industrial undertaking. (Sec 54G)
In all these cases, an assessee is given exemption if the sale proceeds are utilised for some specific purpose. But it happens that the money can not be utilised within short span of time. In that case, there is provision that the money is deposited in designated bank in a special kind of account called Capital Gains Account Scheme (BEFOR THE DUE DATE OF ITR OF RELAVANT PREVIOUS YEAR) and utilise the money for that specific purpose within extend period given in those section.
(Proof of deposit be attached with ITR.)
Therefore , all those assessees who are eligible for exemption u/s 54, 54B, 54D, 54F & 54G are eligible for applying for accounts under Capital Gains Account Scheme.
What are types of deposits under CGAS ?
There are two types of accounts:
Deposit Account-A - This is a saving account.
Deposit Account-B- This is a term deposit account.
Where can I open this account?
You can open this account in any State Bank of India or any bank which is authorised for this scheme. You will have to fill up and submit the Form A in the bank and deposit the money in the account.
What will be the date of deposit in case of deposit of money by cheque?
In case the money is deposited by cheque or draft , the money is realised by the bank even after the date , the effective date for the purpose of counting period given in the provision for exemption will be the date on which the cheque was given to bank.
Can I withdraw money from these accounts ?
Yes, from savings account , you can withdraw by filing Form C with the Bank. However, in case of withdrawal other than initial withdrawal, you will have to submit Form D to the Bank in duplicates.
In case , you want to withdraw from Account Type-B , it will first have to be converted into Type A by filing Form B and then all the methods of withdrawal of money from account A shall follow.
What is the rule regarding the utilisation of the amount of withdrawal?
The amount withdrew has to be spent only for the purpose for which it was deposited as per respective provision under which capital gains arisen. There is also time limit of sixty days from the date of drawl within which it has to be spent. The balance if any , has to be deposited in the bank.
How can I close this account?
Closure By depositor : The depositor will get the approval from his assessing officer in Form G and submit it to the bank.
Closure by nominee: Seek the approval of the assessing officer in Form H who has jurisdiction over deceased depositor and submit to bank.
Closure by legal heir: Seek the approval of the assessing officer in Form H who has jurisdiction over deceased depositor and submit to bank and also submit the disclaimer by other heirs .
Remember however, if there is more than one heir , the assessing officer will give approval only after getting the a succession certificate or a probate of a will or a letter of administration to the estate of the deceased.

Society or Trust - Registration under the Income Tax Act,1961

Any Society or Trust is required to file an application for registration under the Income Tax Act,1961 to the Commissioner of I. Tax within 1 year of creation.
In case of delay, it is entitled to exemption only from 1st day of financial year in which application is made.
Exemption is available from inception, if the Comm. is satisfied that the delay is for valid reasons. But it is very difficult to explain the genuine reasons for delay.
The organization must timely file its annual income tax return, immediately after the expiry of each financial year, before the due date to claim the exemption, as it is not automatic.

TAX EXEMPTION

Organization may qualify for tax - exempt status if the following conditions are met:
A. The assessee is to apply for registration under the Income Tax Act,1961 to the Commissioner of I. Tax in Form No. 10A in duplicate before the expiry of 1 year from the creation of trust.
B. At least 85% of the income derived from property held under trust, should be applied to charitable or religious purposes in the relevant previous financial year in order to claim full tax exemption. Property of the trust also includes a business undertaking held under trust. U/s 10 (23C) (iv) or (v) The application for exemption has to be made by charitable and religious organization in the prescribed form No 56.
C. Surplus income for which an application has to be made in Form No. 10 may be accumulated for specific projects for a period ranging from 1 to 5 years;
D. The property should be held under trust wholly for charitable or religious purposes.
E. No part of the income or property of the organization may be used or applied directly or indirectly for the benefit of the founder, trustee, relative of the founder or trustee or a person who has contributed in excess of Rs. 50,000 to the organization in respective financial year;
F. The organization must timely file its annual income return, immediately after the expiry of each financial year.
G. The income must be applied or accumulated in India. However, trust income may be applied outside India to promote international causes in which India has an interest, without being subject to income tax.
H. Income from such property should be applied to charitable or religious purposes. (Exemption is available to the extent of such application)
I. The funds of the organization must be deposited as specified in section 11(5) of the income tax Act

Audit
To qualify for exemption u/ss. 11 and 12, a trust having total income
(before exemption u/ss. 11 and 12) exceeding Rs. 50,000/- must have
its accounts audited by a Chartered Accountant.

Anonymous Donations
Anonymous donations of the following entities shall be included in the total income u/sec 115 BBC and taxed at the rate of 30%.
• Any trust or institution referred to in section 11
• Any university or other educational institution referred to in section 10(23C) (iiiad) and (VI) i.e. its annual receipts is less than or more than Rs. 1 crore;
• Any hospital or other institution referred to in section 10(23C) (iii a e) and (vi a) i.e. its annual receipts is less than or more than Rs. 1 crore;
• Any fund or institution referred to in section 10(23C)(iv); (established for charitable purpose)
• Any trust or institution referred to in section 10(23C)(v). (established for public religious purposes or public religious & charitable purposes )
Anonymous donations not covered under section 115BBC
The following anonymous donations shall, however, be not be covered under section 115BBC:
(a) Donations received by any trust or institution created or established wholly for religious purposes.
(b) Donations received by any trust or institution created or established for both religious as well as charitable purposes (other than any anonymous donation made with a specific direction that such donation is for any university or other educational institution or any hospital or other medical institution run by such trust or institution.)
Disqualification from Exemption
Following groups are ineligible for tax exemption: all private religious trusts; and charitable trusts or organizations created after April 1, 1962, and established for the benefit of any particular religious community or caste. But note that a trust or organization established for the benefit of "Scheduled Castes, backward classes, Scheduled Tribes or women and children" is an exception; such a trust or organization is not disqualified, and its income is exempt from taxation.
In order to attract voluntary contributions, the trust or society needs to be registered under section 80(G) and section 35 (AC) of the income tax act which provides exemption for the donors. Following are the terms and conditions applicable for above both sections.

TAX EXEMPTION FOR NOTIFIED CHARITABLE SOCIETIES U/s 10(23C) (iv) and (v)
Any income of any institution established for charitable purposes is exempt. For getting exemption under these clauses, following requirement must be completed:
i. Making an application in Form No. 56
ii. Applying its income or accumulating it for application, wholly & exclusively to its objects;
iii. Notice of accumulation u/s 11(2) will have to be given to the assessing officer in Form No. 10

Section 10(23C)
(iiiad) educational institution => its annual receipts is less than Rs. 1 crore;
(iii a e) Any hospital => its annual receipts is less than Rs. 1 crore;

FORM 56 = 10(23C) (iv) & (v) [ Rule 2C(1) ] => Dir. Genaral
(iv) charitable notified by C.Govt. in official. Gazzt.
(v) Public religious & charitable

FORM 56D = 10(23C) (vi) & (via) [ Rule 2CA ] => Dir. Genaral or Chief Comm.
(vi) educational
(via) hospital

Thursday, November 5, 2009

NATURE OF PENAL CONSEQUENCES - I.Tax Act

The Income Tax Act imposes heavy Interests and Penalties in case of a person who defaults in payment of any amounts to the Govt. collected on account of Tax Deducted at Source.


The penal provisions state that if any person responsible for deducting tax at source, does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall, without prejudice to any other consequences which he or it may incur, be deemed to be an assessee in default in respect of the tax. The said penal provisions are equally applicable to an employer who has paid the tax on non monetary perquisites provided to the employee.
However it has been justified that no penalty shall be charged under Section 221 from such person, principal officer or company unless the Assessing Officer is satisfied that such person or principal officer or company, as the case may be, has without good and sufficient reasons failed to deduct and pay the tax.
In furtherance of above if any such person, principal officer or company does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay Simple Interest @ 12% per annum (1% per month) on the:
Amount of such tax from the date on which such tax was Collectible to the date on which the tax was Actually paid.

In addition to above such interest shall be paid before furnishing the Quarterly Statement for each quarter in accordance with the provisions Section 200(3). In case of non payment of tax as aforesaid after its deduction, the amount of the tax together with the amount of Simple Interest thereon shall be a Charge upon all the Assets of the person, or the company, as the case may be.

SUMMARY OF PENAL CONSEQUENCE
Nature of Default Penalty Officer who shall impose penalty Penalty Charging Section

Failure to deduct the whole or any part of the tax deducted at source as required under Sections 192 to 206B in Chapter XVIIB of the Income Tax Act. Sum equal to the amount of tax which was due for deduction but was not deducted. Joint Commissioner Section 271C


Failure to deliver or cause to be delivered on time, a copy of declaration in Form No. 15G/ 15H as per Section 197A. Rs. 100 for every day during which the failure continues but the penalty shall be restricted to the amount of tax deductible. Chief Commissioner Section 272A(2)(f)


Failure to issue TDS certificates u/s 203 Rs. 100 for every day during which the failure continues. Joint Commissioner Section 272A(2)(g)


Failure to furnish the Statement required under Section 192(2C) relating to payment of tax on non- monetary perquisites of the employee Rs. 100 for every day during which the failure continues. Joint Commissioner Section 272A(2)(i)


Failure to deliver or cause to be delivered on time, a copy of the Quarterly statement within the time specified u/s 200(3) Rs. 100 for every day during which the failure continues but penalty restricted to the amount of tax payable. Joint Commissioner Section 272A(2)(k)


Failure to deliver or cause to be delivered on time, a copy of the Quarterly statement within the time specified u/s 206A(1) Rs. 100 for every day during which the failure continues Assessing Officer Section 272A(2)(l)


Failure to apply for allotment of TDCAN (Tax Deduction Account Number) and failure to quote TDCAN in challans, certificates and statements or quote a number which is false, and which he either knows or believes to be false or does not believe to be true. Rs. 10,000 Assessing Officer Section 272BB

Failure to pay tax deducted at source to the credit of Central Govt.
Punishable with rigorous imprisonment for a term of atleast THREE months, which may be extended to SEVEN years along with fine. Previous sanction of Commissioner. Section 276B

Tips for passing CA Examinations

The path to becoming a Chartered Accountant is not easy. The road is very difficult and involves a lot of hard work. I remember the time when I was aspiring to be a Chartered Accountant. Looking at the volume of studies, I often wondered whether I would ever be able to complete it all in time! Well from my experience, I think that if you focus on your study with single-minded devotion, then nothing can stop you from succeeding. Each one must learn from past mistakes. For those who could not get through previous exam, don't lose hope. Instead, take an honest look at yourself. You must accept that there has to something wrong in your approach towards the exam. Identify your shortcomings and overcome them. There is no one common reason for failure. All I can do is provide some basic hints that might help you secure good marks. There is no shortcut to success. And there is no substitute to hard work. But hard work must be in the right direction in order to yield the fruits of success. The study material and suggested answers published by the Institute are of high quality and should be read thoroughly. But, it is very important to take note of subsequent amendments, if any. For example, the relevant section could have changed; or the Accounting Standard in question could have been revised. The CA exams require high quality answers. Unnecessarily lengthy answers will be a definite minus point. Combine length with actual content for best results. Here are a few tips that will help you achieve your aim:
• Learn to strike a balance between work and play. Study very seriously but allot sometime for any leisure activity that makes you feel relaxed.
• Aim for a rank. That way you will at least get through with good marks.
• Remember hard work always yields good results.
• Start your preparations from Day One.
• Plan out your study methodology well in advance and stick to your plans. Keep enough time for unexpected time delays.
• Read the study materials in entirety. Don't leave out any portion.
• Concentrate on the subjects that you find difficult.
• Make notes that will help you to quickly cover the vast syllabus on the day before the exam.
• Make writing a habit. And write legibly.
• Get enough practice in practical subjects.
• Don't learn the study material word-by-word. Instead try to understand what you read. This will help you in answering any type of question that is asked in the exam.
• Don't expect a specific format of the question paper. A professional exam of such caliber. Just keep in mind the marks allotted to each subject - because that's what will not change.
• Presentation is what matters most. Present your answers in a neat and systematic manner. Remember, the easier it is for the examiner to read your answers, the more marks you get.
• Read a lot of related material like newspapers, periodicals, magazines, etc so that your knowledge is updated. This will help you get better marks in the exam.

• Always keep in mind:
“Kiss the feet of your parents
Success will kiss of your feet.”

Regards,

TDS Provisions in brief

Sub : Directions to improve and perfect the system of Deduction and Payment of Tax u/s 192 to 194 LA and section 206 C of INCOME TAX ACT,1961.

The additional Commissioner of Income tax (TDS) has issued a notice showing the discrepancies observed by them in TDS compliance by us. This circular is issued to address these discrepancies.
Please note that the primary responsibility to deduct the tax at source and payment of it and filling the quarterly returns of TDS lies with the Department head in whose name the TAN is allotted. Failure to comply with these provisions may attract interest, Penalties and imprisonment under the ACT.
Now, let’s see the related provisions of financial Year 2008-09 and application of such provision one by one to avoid any further problems.

(1) SECTIONS 192 FOR “TAX DEDUCTION AT SOURCE FROM SALARY” -: Any Person responsible for paying any income chargeable under the head Salaries is required to deduct tax at source on the amount payable. Tax is to be calculated at the rates prescribed for the financial year in which the payment to employee is made. The person responsible for paying the salary may, at the time of deducting tax at source, increase or decrease the amount to be deducted for the purpose of adjusting any previous shortfall or excess deduction.

(I)TAX RATE TABLE
FOR FINANCIAL YEAR 2008-09

Tax Rate Sr.Citizen Women Others
Nil Taxable Salary upto 2,25,000 Taxable Salary upto 1,80,000 Taxable Salary upto 1,50,000
10% + Edu. Cess 3% 2,25,001-3,00,000 1.80.001-3,00,000 150001-3,00,000
20% + Edu. Cess 3% 3.00.001-5,00,000 3,00,001-5,00,000 3,00,001-5,00,000
30% + Edu. Cess 3% 5,00,001-10,00,000 5,00,001-10,00,000 5,00,001-10,00,000
30 %+ 10% Surcharge + Education Cess 3% 10,00,001 & Above 10,00,001 & Above 10,00,001 & Above

For this Purpose Senior Citizen (Man or women) means person who is 65 or 65+ years of age during the financial year 2008-09.


Following Example will clear the provisions further,
(II) ILLUSTRATION TABLE -: This Is Just an Example for clear understanding of provision.

(Amount in Rupees)
Particular’s Sr.Citizen Women Others
Monthly Pension/Salary after considering exemptions u/s 10 and deduction u/s 80C,80CCC,80CCD,80D,80DD,80E,80GG,80U 70,000 1,05,000 1,05,000
Month 12 12 12
Total Salary (Including 1 month’s Bonus) 9,10,000 13,65,000 13,65,000
Tax thereon
(1)Upto 2,25,000/1,80,000/1,50,000 as per table I 0 0 0
(2)Next slab as per table I 7,500 12,000 15,000
(3)Next Slab as per table I 20,000 20,000 20,000
(4)Next Slab as per table I 1,23,000 1,50,000 1,50,000
(5)Next slab as per table I 0 1,09,500 1,09,500
(6)Total Tax=(1+2+3+4+5) 1,50,500 2,91,500 2,94,500
(7)Add -: 10% surcharge (6 * 10%) As salary of Sr.citizen is less than 10,00,000 no surcharge is applicable, hence taken as Nil. 0 29,150 29,450
(8)Total tax & Surcharge (7+8) 1,50,500 3,20,650 3,23,950
(9)Add -: 3 % Education cess on Tax + Surcharge=(8 * 3%) 4,515 9,620 9,720
(10) Total Estimated Tax (6+7+9) 1,55,015 3,30,270 3,33,670
Divide it by 12 month 12 12 12
Monthly deduction to be made from respective monthly salary payment is 12,918 27,523 27,806

What if such deduction has not been made so far
Continuing with the above Illustration
Table III – Adjustment of Excess/Shortfall of Tax deduction at source
Particular’s Sr.Citizen Women Others
STATUS TDS NOT AT ALL DEDUCTED FOR FIRST 6 MONTHS TDS IS DEDUCTED FOR FIRST 6 MONTHS BUT THERE IS A SHORTFALL EXCESS TDS DEDUCTED IN FIRST 6 MONTHS
(A)Total Estimated Tax as per Table II Row (10) 1,55,015 3,30,270 3,33,670
(B)Total deduction for first 6 month Apr. to sep. 08 0 1,95,000 3,35,000
(C)Total Estimated Tax Payable at the end of September = (A-B) 1,55,015 1,35,270 Nil
(D) Remaining month oct. – mar., i.e. remaining 6 Months, in this case divide the remaining estimated salary by 6 months 6 6 6
(E) Monthly Deduction from salary from Oct-Mar 2008 = (C/D) 25,836 22,545 Nil


(2) SECTION 194 C – Payment to Contractor’s
Any person responsible for paying any sum to any resident contractor for carrying out any work ( including supply of labour) in pursuance of a contract between payer and receiver, in this case payer is required to deduct and pay taxes at the rates specified. Such tax is deducted at the time of payment or credit whichever is earlier.
However no tax is deductible, if amout paid or credited do not exceed Rs.20,000 or more in a single payment or Rs.50,000 or more in that Financial year.
Important to note that there should be a contract between payer and receiver.
From the above it can be seen that , if payment exceeds Rs.20,000 or more in a single payment or Rs.50,000 in Financial year then , TDS shall be deducted at the rate of 2% + 3% Education cess and surcharge is applicable if Payment exceeds Rs. 1,00,00,000 and Surcharge is 2.5% of total tax. However if contract is for Advertisement the rate applicable for the same is 1% instead of 2%.
TABLE (IV) Let’s see one example to clear the provisions.
Particular’s Payment is 20,000 or more in a single payment but does not exceed the 50,000 total limit of a year Payment is less than Rs20,000 in a single payment but exceed’s the 50,000 total limit of a year Payment made to Advertisement contractor’s
Contractual Payment 25,000 18,000 25,000
Tax to be deducted 2% TDS + 3% Education cess on TDS i.e. 2.06 % of Rs.25,000/- 2% TDS + 3% Education cess on TDS i.e. 2.06 % of Rs.18,000/- 1% TDS + 3% Education cess on TDS i.e 1.03% if Rs. 25,000/-



(3) SECTION 194 I “RENT” Any person responsible for making any payment under the head Rent shall, if Rent payable exceeds Rs. 1,20,000 in a year, that means Rs. 10,000/- per month, then Tax shall be deducted as per following Table.
TABLE (V) Rate Of Tax Deduction from RENT.
Particular’s Rate
Rent Payment to Individual/HUF 15% +3% Education cess on TDS and if payment Exceeds Rs 1,00,00,000 then 15% +2.5% surcharge + 3% education cess of TDS & Surcharge.
Rent Payment to Other’s 20% +3% Education cess on TDS and if payment Exceeds Rs 1,00,00,000 then 20% +2.5% surcharge + 3% education cess of TDS & Surcharge.
Machine & Equipment Rent to any person 10% +3% Education cess on TDS and if payment Exceeds Rs 1,00,00,000 then 10% +2.5% surcharge + 3% education cess of TDS & Surcharge.



(4) SECTION 194LA FOR “TAX DEDUCTION AT SOURCE FROM PAYMENT OF COMPENSATION FOR COMPULSARY AQUSITION OF LAND”
Any person responsible for paying any person any compensation or enhanced compensation or consideration or enhanced consideration on account of compulsory acquisition of any immovable property ( Other than agriculture land) is responsible for deduction of tax at source. Such tax is deducted at the time of payment or credit whichever is earlier.
However no tax is deductible if such compensation does not exceed Rs. 1,00,000/-.
From the above, it can be seen that at the time of payment of compensation, if compensation is more than Rs. 1,00,000/- then TDS shall be deducted at the rate of 10% + 3% Education cess and surcharge is applicable if Payment exceeds Rs. 1,00,00,000 and Surcharge is 2.5 % of total tax


TABLE (VI) Let’s see one example to clear the provisions
Particular’s Payment is less than Rs. 1,00,000 Payment is less than Rs. 1,00,00,000 Payment is more than Rs. 1,00,00,000
Compensation (Example) 70,000 67,00,000 1,05,67,000
Tax To be Deducted Nil 10% + 3% Education cess on tax (i.e. 10. 30%) 10%+ 2.5% Surcharge + 3% education cess on Tax and surcharge. (i.e. 10.56%)

Q1. What if Compensation is given in the form of TDR (Transferable Development Rights ) Or in the form of (Additional FSI)?
Ans. The tax should be deducted on the Value of TDR or FSI given.
For Example PMC has acquired land for road widening and gave the owner ,TDR or additional FSI as compensation valuing Rs. 50,00,000/-. Then on this 50,00,000/-, Tax is to be deducted at the applicable rates discussed above and to be paid to government.
So far we have discussed the TDS Provisions i.e. Tax to be recovered and paid on Payment under these heads.





Now let us familiarise ourselves with TCS Provisions I.E. Tax to be recovered and paid on Income received, If such income falls under Good/services mentioned in the Following Table.

(5) Tax Collection at source u/s 206C

TABLE (VII) TAX COLLECTION AT SOURCE U/S 206 C OF INCOME TAX ACT,1961.

Sr.No Nature Of Goods Rate
1 Scrap 1.0% + Surcharge 2.5 %, if Income exceeds Rs. 1 Crore and + 3% Education Cess On Tax and Surcharge.
2 Parking Lot 2.0% + Surcharge 2.5 %, if Income exceeds Rs. 1 Crore and + 3% Education Cess On Tax and Surharge.
3 Toll Plaza 2.0% + Surcharge 2.5 %, if Income exceeds Rs. 1 Crore and + 3% Education Cess On Tax and Surcharge.

Please Note that Scrap means, Waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons.
Let’s clear the provision by one example.
PMC has given person X to run the Parking lot on PAY AND PARK BASIS for RS. 50,00,000 in this case PMC will quote 50,00,000 + TCS=(2% Tax+3% Education Cess on Tax). i.e. 50,00,000 as operating parking lot price + Rs 1,00,000 as TCS and Rs. 3000 as Education cess) Please note that Surcharge is not applicable in this case as Income(50,00,000), does not exceed RS. 1Crore.










Let’s See, How the Act is administered.
- Obtain TAN Number
- File Quarterly Retuns as per following table

Quarter Period 24Q/26Q 27Q 27EQ
Q1 01/04 To 30/06 15/07 14/07 15/07
Q2 01/07 To 30/09 15/10 14/10 15/10
Q3 01/10 To 31/12 15/01 14/01 15/01
Q4 01/1 To 31/03 15/06 14/04 30/04

FORM 24Q is for Salaries.
FORM 26Q is for Payment Other Than Salaries.
FORM 27Q is for Payment to Non-residents
FORM 27EQ is for TAX COLLECTION AT SOURCE u/s 206C
Please Note that Non-payment of TDS on or before due date will attract Interest, Penalties and possible prosecution. To avoid this unnecessary hardship, please do the needful immediately.

I hope this clarifies the related provision and administration of the ACT.

Benefits of Joint Housing loan

Housing loan has been one of the favorite posting topic here . We have written about housing loan here, here and here. Continuing the trend to educate about housing loan, this one goes on how to maximize the benefits from a housing loan by making it a joint housing loan between couples.

The below are the benefits one is bound to get from a joint loan.
• The most significant benefit is increased eligibility. The total income is calculated based on all sources of income of both the applicants. So, if your spouse is working, you are in for more amount.

• It is known that in case of a housing loan, the tax rebate for principal is a maximum of 1 L and a 1.5 L for the interest paid. In case of joint loan, these benefits are given simultaneously to all the parties involved, hence for a couple the benefit doubles! In case they chose to share the repayment of interest and principle, the benefits they receive is directly proportional to the share each contribute towards repayment.

• The good thing is that it need not necessarily be married couples, one can avail joint loan with their parents also.
As is logical the partner with the higher income should contribute more towards the loan to bring his taxable income down so that his tax comes down. For tax purposes, it is best to procure a home sharing agreement, detailing the ownership proportion in a stamp paper, as legal proof for ownership.
However, there is one rule banks insist on when you apply for a joint home loan, which is that all co-owners of the property should also be co-applicants but the reverse need not be true.
So, make partnership and make merry!

Good News for Employees

In good news for employees , particularly in the IT sector , Mumbai Income Tax Appellate Tribunal has held that pick up & drop facility provided by Employers is not a taxable perquisite. This decision is important for employees since the GOI has scrapped FBT in the latest Budget and transferred the onus of tax liability on perks to employees.

ACCOUNTING & AUDITING STANDARDS

ACCOUNTING STANDARDS

(AS-1) DISCLOSURE OF ACCOUNTING POLICIES
(AS-2) VALUATION OF INVENTORIES
(AS-3) CASH FLOW STATEMENT
(AS-4) CONTINGENCIES AND EVENTS OCCURRING
AFTER THE BALANCE SHEET DATE
(AS-5) NET PROFIT OR LOSS FOR THE PERIOD PRIOR
PERIOD ITEMS AND CHANGE IN ACCOUNTING POLICIES
(AS-6) DEPRECIATION ACCOUNTING
(AS-7) CONTSTRUCTION CONTRACTS (REVISED)
(AS-9) REVENUE RECOGNTION
(AS-10) ACCOUNTING FOR FIXED ASSETS
(AS-11) THE EFFECTS OF CHANGES IN FOREIGN
EXCHANGE RATES (REVISED 2003)
(AS-12) ACCOUNTING FOR GOVERNEMNT GRANTS
(AS-13) ACCOUNTING FOR INVESTMENTS
(AS-14) ACCOUNTING FOR AMALGAMTION
(AS-15) ACCOUNTING FOR RETIREMENT BENEFITS IN
THE FINANCIAL STATEMENTS OF EMPLOYERS
(AS-16) BORROWING COSTS
(AS-17) SEGMENT REPORTING
(AS-18) RLATED PARTY DISCLOSURE
(AS-19) ACCOUNTING FOR LEASES
(AS-20) EARNING PER SHARE
(AS-21) CONSOLIDATED FINANCIAL STATEMENTS
(AS-22) ACCOUNTING FOR TAXES ON INCOME
(AS-23) ACCOUNTING FOR INVESTMENTS IN ASSOCIATES IN CONSOLIDATED FINANCIAL STATEMENTS
(AS-24) DISCOUNTING OPERATIONS
(AS-25) INTERIM FINACIAL REPORTING
(AS-26) INTANGIBLE ASSETS
(AS-27) FIANCIAL REPORTING OF INTEREST IN
JOINT VENTRUE
(AS-28) IMPAIRMENT OF ASSETS
(AS-29) PROVISIONS CONTINGENT LIABILITIES AND
CONTINGENT ASSETS

AUDITING STANDARDS
(Engagements and Quality Control Standards)

(AAS 1) BASIC PRINCIPLES GOVERNING AN AUDIT
(AAS 2) OBJECTIVE AND SCOPE OF THE AUDIT OF
FINANCIAL STATEMENTS
(AAS 3) DOCUMENTATION
(AAS 4-REVISED) THE AUDITOR’S RESPONSIBILITY TO
COSIDER FRAUD AND ERROR IN AN AUDIT OF
FINANCIAL STATEMENTS
(AAS 5) AUDIT EVIDENCE
(AAS 6-REVISED) RISK ASSESSMENTS AND INTERNAL
CONTROL
(ASS 7) RELYING UPON THE WORK OF AN INTERNAL
AUDITOR
(AAS 8) AUDIT PLANNING
(AAS 9) USING THE WORK OF AN EXPERT
(AAS 10 REVISED) USING THE WORK OF ANOTHER
AUDITORS
(AAS 11) REPRESENTATIONS BY MANAGEMENT
(AAS 12) RESPONSIBILITY OF JOINT AUDITORS
(AAS 13) AUDIT MATERIALITY
(AAS 14) ANALYTICL PROCEDURES
(AAS 15) AUDIT MATERIALITY
(AAS 16) GOING CONCERN
(AAS 17) QUALITY CONTROL FOR AUDIT WORK
(AAS 18) AUDIT OF ACCOUNTING ESTIMATES
(AAS 19) SUBSEQUENT EVETNS
(AAS 20) KNOWLEDGE OF THE BUSIENSS
(AAS 21) CONSIDERATION OF LAWS AND
REGULATIONS IN AN AUDIT OF FINALCIAL
STATEMENTS
(AAS 22) INITIAL ENGAGEMENTS –OPENING BALANCE
(AAS 23) REALTED PARTIES
(AAS 24) AUDIT CONSIDERATION RELATING TO ENTITIES USING SERVICE ORGANISATIONS
(AAS 25) COMPARATIVES
(AAS 26) TERMS OF AUDIT ENGAGEMENT
(AAS 27) COMMUNICATION OF AUDIT MATTERS WITH
THOSE CHARGED WITH GOVERMANCE
(AAS 28) THE AUDIOTR’S REPORT ON FINACIAL
STATEMENTS
(AAS 29) AUDIT IN A COMPUTER INFORMATIONS
SYSTEMS ENVIORNMENT
(AAS 30) EXTERNAL CONFIRMATIONS
(AAS 31) ENGAGEMENTS TO COMPILE FINANCIAL INFORMATION.
(AAS 32) ENGAGEMENTS TO PERFORM AGREED UPON PROCEDURES REGARDING FINANCIAL INFORMATION.
(AAS 33) ENGAGEMENTS TO REVIEW FINANCIAL STATEMENTS.
(AAS 34) AUDIT EVIDENCE- ADDITIONAL CONSIDERATIONS FOR SPECIFIC ITEMS.
(AAS 35) THE EXAMINATION OF PROSPECTIVE FINANCIAL INFORMATION.

TREASURY MANAGEMENT. (TM)

OBJECTIVES:

- Management of funds

- Availability of the funds in right quantity

- Availability in right time

- Deployment in right quantity

- Deployment in right time

- Profiting from availability and deployment

FUNCTIONS:

- The function of treasury mgt. Is concerned with both macro and micro facets of the economy

- At the macro level, the pumping in and out of cash, credit and other financial instruments are the functions of the government and business sectors, which borrow from the public

- These two sectors spend more than their means and have to borrow in finance their ever-growing operations. They accordingly issue securities in the form of equity or debt instruments.

- The latter are securities including promissory notes and treasury bills which are redeemable after a stipulated time period.

- Such borrowings for financing the needs of the government and the business sector are met by surplus funds and savings of the household sector and the external sector. these two sectors have a surplus of incomes over expenditure.

- The micro units urtilise these surpluses and build up their capacities for production of output and this leads to the productive system and distribution and consumption systems.

SCOPE:

- Unit level: the performance of production, marketing and HRD functions is dependent upon the performance of the treasury department. the lubricant for day-to-day functioning of a unit is money or funds and these funds are arranged by the treasury manager.

- Domestic level: the scope is to channelise the savings of the community into profitable investment avenues. This job is performed by the commercial banks. TM is a crucial activity in banks and financial institutions as they deal with the funds, borrowings and lending and investments.

- International level: is concerned with management of funds in the foreign currencies.

RELATIONSHIP BETWEEN TREASURY MGT. AND FINANCIAL MGT.:

  1. Control Aspects:

- Financial mgt. Is to establish, coordinate and administer, an adequate plan for control of operations.

- Treasury mgt. Is to execute the plan of finance function

- The finance function of a firm would fix the limit for investment in short term instruments for a firm

- It is the treasury function that would decide which particular instruments are to be invested in within the overall limit having regard to safety, liquidity and profitability.

  1. Reporting Aspects:

- FM is concerned with the preparation of profit and loss account and the balance sheet. Taxation aspects and external audit. And reports are submitted to the top mgt. Of the firm.

- TM is concerned with monitoring the income and expenditure budgets on a periodic basis vis-à-vis the budgets. it is also involved in the internal audit of the firm.

  1. Strategic Aspects:

- For FM are the investment and financing. While making these choices, the finance manager is taking a long term view of the state of affairs

- For TM is more short term in nature. The treasury manager has to decide about the tools of accounting and development of systems for generation of controlling reports.

  1. Nature of Assets:

- The finance manager is concerned with creation of fixed assets for the firm. Fixed assets are those assets which yield benefit to the firm over a longer period of time.

- The treasury manager is concerned with the net current assets of the firm. Net current assets are the difference between the current assets and current liabilities of the firm.

ROLES OF THE TREASURY MANAGER:

- Originating roles

- Supportive roles

- Leadership roles

- Watchdog roles

- Learning roles

- Informative roles

RESPONSIBILITES OF THE TREASURY MANAGER:

- Compliance with statutory guidelines

- Equal treatment to all departments

- Ability to network

- Integrity and impartial dealings

- Willingness to learn and to teach.

TOOLS OF TM:

- Analytic and planning tools

- Zero based budgeting

- Financial statement analysis

INTERNAL TREASURY CONTROL:

- Is a process of self-improvement. It is concerned with all flows of funds, cash and credit and all financial aspects of operations.

- The financial aspects of operations include procuring of inputs, paying creditors, making arrangement for finance against inventory and receivables.

- Principles:

§ Control should be at all levels of management and participation should be from all cadres of personnel.

§ There has to be a system of building up of effective communication from top to bottom and bottom to the top.

§ The control should be built upon the management information system.

ENVIRONMENT FOR TREASURY MANAGEMENT:

- Legal environment: refers to the legislations, which govern corporate functioning.

- Regulatory environment: regarding employment, wages, land laws, promotion of units and closure of units etc.

- Financial environment: pertains to policies regarding monetory and fiscal control, financial supervision, exchange control etc.

Reverse Mortgage Loan (RML)

Introduction

ü The Ministry of Finance has notified the scheme called the Reverse Mortgage Scheme 2008 dt.30/9/08.

ü Clause (f) of Section 2 of the scheme defines Reverse Mortgage as mortgage of a capital asset by an eligible person against a loan obtained by him from an approved lending institution.

ü Simply put, Senior Citizens (above 60 years age) owning a house can mortgage it with a lender to receive a stream of income, especially in retirement, without selling their home.

ü Lender provides loan against the future realisable value of the home.

ü National Housing Bank (NHB) has already started to provide RLM.

Basic Features

ü The Senior citizen is not required to service the loan during his/her lifetime i.e. does not have to make monthly repayments of principal and interest to the lender.

ü Value of the house is dependent on the value of the house assessed by the lender, age of borrower and prevalent interest rates.

ü Loan can be provided through

o monthly/quarterly/half yearly/annual disbursement

o lump sum disbursement

o committed line of credit

o combination of all three

ü Maximum period of loan is 20 years.

ü Loan amount cannot be used for speculative, trading or business purposes.

ü Valuation of the property will be done at the frequency decided by the lender but at least once in 5 years.

ü Borrower continues to use the house

o through their lifetime; or

o until permanently moves out; or

o ceases to use it as permanent primary residence.

ü Loan carries a non-recourse guarantee i.e. borrower will never owe more than the net realisable value of the property, provided terms and conditions of the loan have been met.

ü On borrower’s death or his leaving the property permanently, the loan is repaid along with accumulated interest through sale of the property.

ü Borrower/his heirs have the option of repaying the loan (with interest) and have mortgaged released without resorting to sale of property.

ü Borrower/his heirs also have the option of prepaying the loan at any time during the loan tenor or later, without any prepayment penalty.

Taxation

ü Newly inserted clause (xvi) in Section 47 of the Income Tax Act provides that any transfer in transaction of RML under a scheme made and notified by Central Govt. shall not be regarded as transfer.

ü Hence the possibility of the property being charged to Capital Gains Tax does not arise.

ü Section 10 of the Act has also been amended to provide that any loan received by an individual in a transaction of RML shall not be included total income of the borrower.

ü However, the borrower shall be liable to Capital Gains tax only at the point of alienation of the mortgaged property by the mortgagee for the purpose of recovering the loan.

Conclusion

ü Concept of RML is a blessing for the elderly.

ü Owned house property can be leveraged against regular cash inflows.

ü Those who did not plan in their early lives for their retirement can plan now.

ü An additional Financial Planning tool.



GIFTS - PRESS RELEASE - Ministry of Finance

No.402/92/2006-MC (21 of 2009)

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

Dated: September 30, 2009

PRESS RELEASE

The Income Tax Act 1961 (the Act) has been amended with effect from 1 st October 2009 to provide that any gift-in-kind, being an immovable property or any other property, the value of which exceeds Rs.50,000 (rupees fifty thousand), will become taxable in the hands of the donee, being an individual or a Hindu Undivided Family (HUF), as income from other sources under clause (vii) of sub-section 2 of section 56 of the Act. Therefore, any such person who receives a gift of any such property on or after 1 st October 2009 must pay the income tax due on the value of the gift and disclose the taxable value of such property in the return of income for assessment year 2010-11 and subsequent years.

The following types of gifts will, however, not be subject to tax, i.e. gifts (a) from a person who is a relative; (b) on the occasion of marriage of the individual; (c) under a will or by way of inheritance; (d) in contemplation of death of the donor; (e) from any local authority as defined in the Explanation to section 10(20) of the Act; (f) from any fund or trust established under section 10(23C) of the Act; (g) from any trust or institution registered under section 12AA of the Act.

Relative is defined in the Act as (i) spouse; (ii) brother or sister; (iii) brother or sister of the spouse; (iv) brother or sister of either of the parents; (v) any lineal ascendant or descendant; (vi) spouse of any of the relative at clauses (ii) to (v); of the individual. Gifts received from these relatives will not be subject to tax.

Earlier cash gifts exceeding Rs.25,000 were subject to tax with effect from 1 st April 2004. Later the Act was amended with effect from 1 st April 2006 to tax all cash gifts having aggregate value exceeding Rs.50,000. Cash gifts also enjoy exemptions as is available for gifts-in-kind.

Just Read

Always look to the good side of men and matters. Even when you come across people who are rude to you, feel that god has provided you with an opportunity for strengthening your mind through their behavior. Always see what is good in others in order to develop that particular good quality in yourself.

See no evil. But if you happen to notice any, see that evil does not come to you. God created both good and evil in this world for us to learn. From the good we learn to be good and from the evil we learn to be free from evil. Therefore, both good and evil are
really good only.

Make others happy as you strive to make yourself happy. Speak a helpful world. Give a cheering smile. Wipe the tears of one who is in distress. Render smooth a rough place on another path. Regard your neighbors happiness as your own happiness, and your neighbours pain as your pain.

No Overpowering: Key to happiness and success

Many relationships fail because one party tries to overpower another, or demands too much. People in love tend to think that love will conquer all and their spouses will change the bad habits after marriage. Actually, this is not the case. There is a Chinese saying which carries the meaning that "It is easier to reshape a mountain or a river than a person's character."

It is not easy to change. Thus, having high expectation on changing the spouse character will cause disappointment and unpleasantness.

It would be less painful to change ourselves and lower our expectations.

Once upon a time, there was a king who ruled a prosperous country. One day, he went for a trip to some distant areas of his country. When he was back to his palace, he complained that his feet were very painful, because it was the first time that he went for such a long trip, and the road that he went through was very rough and stony. He then ordered his people to cover every road of the entire country with leather.

Definitely, this would need thousands of cows' skin, and would cost a huge amount of money.
Then one of his wise servants dared himself to tell the king, "Why do you have to spend that unnecessary amount of money? Why don't you just cut a little piece of leather to cover your feet?"

The king was surprised, but he later agreed to his suggestion, to make a "shoe" for himself.

There is actually a valuable lesson of life in this story: to make this world a happy place to live, you better change yourself - your heart; and not the world.

Wednesday, November 4, 2009

PROCEDURE REVISED FOR ACCEPTANCE OF ADDRESS PROOF ALONGWITH PAN

AS per the circular no 321 the additional procedure for acceptance of proof of address alongwith PAN applications received from Individuals and HUF are as under:

1. While accepting “Application for allotment of PAN (Form 49A)” if both the addresses (residence and office) are mentioned in the application formand office address has been selected as communication address, then POA has to be collected for residence as well as office address.

2. While accepting “Request for New PAN card or/and changes or correction in PAN data” applications, proof of all addresses provided in the application have to be collected.

3. Documents as per Rule 114(4) of Income Tax Rules will only be accepted as valid proof for both the abovesaid addresses.

4. Both proof of addresses will have to be in the name of applicant and should contain the name in the expanded form as given in the application. The exception provided for ration card communicated vide our circular TFCID/TIN/08/ 255 dated February 18, 2008 will continue to be applicable.

All TIN-FCs are hereby informed that the above will be effective for all PAN applications received on or after November 1, 2009.

TEACHER & GURU

TEACHER & GURU


A teacher takes responsibility of your growth
A Guru makes you responsible for your growth

A teacher gives you things you do not have and require
A Guru takes away things you have and do not require

A teacher answers your questions
A Guru questions your answers

A teacher helps you get out of the maze
A Guru destroys the maze

A teacher requires obedience and discipline from the pupil
A Guru requires trust and humility from the pupil

A teacher clothes you and prepares you for the outer journey
A Guru strips you naked and prepares you for the inner journey

A teacher is a guide on the path
A Guru is a pointer to the way

A teacher sends you on the road to success
A Guru sends you on the road to freedom

A teacher explains the world and its nature to you
A Guru explains yourself and your nature to you

A teacher makes you understand how to move about in the world
A Guru shows you where you stand in relation to the world

A teacher gives you knowledge and boosts your ego
A Guru takes away your knowledge and punctures your ego

A teacher instructs you
A Guru constructs you

A teacher sharpens your mind
A Guru opens your mind

A teacher shows you the way to prosperity
A Guru shows the way to serenity

A teacher reaches your mind
A Guru touches your soul

A teacher gives you knowledge
A Guru makes you wise

A teacher gives you maturity
A Guru returns you to innocence

A teacher instructs you on how to solve problems
A Guru shows you how to resolve issues

A teacher is a systematic thinker
A Guru is a lateral thinker

A teacher will punish you with a stick
A Guru will punish you with compassion

A teacher is to pupil what a father is to son
A Guru is to pupil what mother is to her child

One can always find a teacher
But a Guru has to find and accept you

A teacher leads you by the hand
A Guru leads you by example

When a teacher finishes with you,
you graduate
When a Guru finishes with you,
you celebrate

When the course is over you are thankful to the teacher
When the discourse is over you are grateful to the Guru

Thought of the day

*“Every man dies. Not every man really lives.”*


"If at first you do succeed, try to hide your astonishment."


And somebody thought the saying was_

If at first you do not suceed, destroy all evidence you ever tried