TIOL-DDT 236 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"> </head> <body bgcolor="#FFFFFF"> <p><b><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif" size="3">TIOL-DDT 236<br/></font></b></p> <p align="center"><strong><font color="#006633" face="Verdana, Arial, Helvetica, sans-serif" size="2"> UTI Retirement Fund notified under Section 80C</font></strong></p> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><b>08 11 2005<br/></b></font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><b>Tuesday</b></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">As per the new Section 80C of the Income Tax Act, inserted with effect from 1.4.2006, certain savings and investment up to one lakh rupees is deducted from the total income for computing taxable income. Clause xiv specifies investment in certain notified pension funds set up by Mutual Funds. Now the Government has notified the UTI-Retirement Benefit Pension Fund set up by the Unit Trust of India.</font></p> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><u><strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not227.htm">NOTIFICATION NO. 227/2005, Dated: November 3, 2005</a></strong></u></font></p> <p align="center"><font color="#006633" face="Verdana, Arial, Helvetica, sans-serif" size="2"><b>Equity Linked Savings Scheme notified</b></font></p> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Section 80C also allows deduction of investments in certain saving schemes notified by the Government. Now the Government has notified the Equity Linked Savings Scheme, 2005. Salient features are:-</font></p> <ol><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Amount to be invested in a plan of the Unit Trust or of a Mutual Fund shall be in multiples of Rs. 500 with a minimum of Rs. 500.</font> </p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Mutual Fund shall allot the Units not later than on 31st March, every year.</font> </p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">The plan shall be open for a minimum period of one month during the financial year 2005-06 and a minimum period of three months during the subsequent years.</font> </p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Investment in the plan will have to be kept for a minimum period of three years from the date of allotment of units. </font></p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">In the event of the death of the assessee, the nominee or legal heir, as the case may be, shall be able to withdraw the investment only after the completion of one year from the date of allotment.</font> </p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Units issued under the plan can be transferred, assigned or pledged after three years of its issue.</font> </p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">The funds collected under a plan shall be invested in equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies.</font> </p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">After a period of three years from the date of allotment of units, when the repurchase of units is to commence, the Trust and the Mutual Fund shall announce a repurchase price every month or as frequently as may be decided by them.</font> </p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Repurchase of Units will be at the repurchase price prevailing on the date the units are tendered for repurchase.</font> </p></li><li><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">A plan operated by Unit Trust or a Mutual Fund would be terminated at the close of the 10th year from the year in which the allotment of units is made under the plan.</font> </p></li></ol> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><u><strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not226.htm">NOTIFICATION NO .226/2005, Dated : November 3, 2005 </a></strong></u></font></p> <p align="center"><font color="#006633" face="Verdana, Arial, Helvetica, sans-serif" size="2"><b>New Jeevan Dhara notified under 80C</b></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Under Clause xii of Section 80C(2), investments in certain annuities with insurance is allowed as deduction. Now the Government has specified </font><font face="Verdana, Arial, Helvetica, sans-serif" size="2">New Jeevan Dhara, New Jeevan Dhara-I and New Jeevan Akshay, New Jeevan Akshay-I and New Jeevan Akshay-II Plans of the Life Insurance Corporation of India under the Section.</font></p> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><u><strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not225.htm">NOTIFICATION NO. 225/2005, Dated: November 3, 2005</a></strong></u></font></p> <p align="center"><font color="#006633" face="Verdana, Arial, Helvetica, sans-serif" size="2"><b>LIC's ULIP eligible</b></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Government has notified the Unit Linked Insurance Plan (formerly known as Dhanraksha-1989) of the Life Insurance Corporation Mutual Fund as also an eligible investment for deduction under Section 80C.</font></p> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><u><strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not224.htm">NOTIFICATION NO. 224/2005, Dated: November 3, 2005</a></strong></u></font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font color="#006600">NSC and PPF</font></strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">National Savings Certificates (VIII Issue) issued under the Government Savings Certificates Act, 1959 and Public Provident Fund, established under the Public Provident Fund Scheme, 1968, are also notified for eligible deductions under Section 80C.</font></p> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><u><strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not223.htm">NOTIFICATION NO. 223/2005, Dated: November 3, 2005</a></strong></u></font><font color="#0000cc" face="Verdana, Arial, Helvetica, sans-serif" size="2"><u><strong> </strong></u></font><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>and </strong></font><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><u><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not222.htm">NOTIFICATION NO.222/2005, Dated: November 3, 2005</a></u></strong></font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font color="#006600">Consequential amendments to rules and forms</font></strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Consequent to the new Section 80C coming into force, certain amendments are made ion the Rules and some forms.</font></p> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><u><strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not221.htm">NOTIFICATION NO. 221/2005, Dated: November 3, 2005</a></strong></u></font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font color="#006600">Pattern of investment by public funds</font></strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">The Central Government had specified by notification no. F.5(53)/2002-ECB & PR dated the 24th January, 2005, the pattern of investment to be made by recognized provident funds, approved superannuating funds and approved gratuity funds. The notification has come into force on the 1st day of April, 2005. Rule 67 of the Income-tax Rules, 1962 contains provisions relating to investment of fund moneys in the manner specified from time to time by the Department of Economic Affairs. The rules are amended retrospectively to prescribe the pattern of investment. The Board has certified that the retrospective operation of this notification shall not prejudicially affect the interests of the assesses</font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>TABLE INVESTMENT PATTERN</strong></font></p> <table align="center" border="1" cellpadding="3" cellspacing="0" id="table3" width="450"><tbody><tr><td class="Normal" valign="top" width="8%"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>S.No. </strong></font></div></td><td class="Normal" width="69%"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Investment </strong></font></div></td><td class="Normal" width="21%"><div align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Minimum Percentage of Investible moneys to be invested in items referred to in column (2)</strong></font></div></td></tr><tr><td class="Normal" valign="top"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(1) </font></div></td><td class="Normal"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(2) </font></div></td><td class="Normal"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(3)</font></div></td></tr><tr><td class="Normal" height="38" valign="top"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(i) </font></div></td><td class="Normal"><div align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">In Central Government securities as defined in section 2 of the Public Debt Act, 1944 (18 of 1944); and/or units of such Mutual Funds which have been set up as dedicated funds for investment in Government securities and which are regulated by the securities and Exchange Board of India;</font></div></td><td class="Normal" valign="top"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Twenty five Percent.</font></td></tr><tr><td class="Normal" valign="top"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(ii)</font></div></td><td class="Normal"><div align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(a) in Government securities as defined in section 2 of the Public Debt Act, 1944 (18 of 1944), created and issued by any state Government, and/or units of such mutual funds which have been set up as dedicated funds for investment in Government securities and which are regulated by the securities and Exchange Board of India: and/or<br/><br/>(b) in any other negotiable securities the principle whereof the interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government except those covered under (iii)(a) below;<br/></font></div></td><td class="Normal" valign="top"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Fifteen per cent. </font></td></tr><tr><td class="Normal" valign="top"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(iii)</font></div></td><td class="Normal"><div align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(a) in bonds/securities of a public financial institution or of a public sector company or of a public sector bank, which have an investment grade rating from at least two credit rating agencies; and/or </font><p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(b) Term Deposit Receipts (TDR) up to three years issued by public sector banks; and/ or </font></p><p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(c) in Collateral Borrowing and Lending Obligation (CBLO) issued by Clearing Corporation of India Limited and approved by the Reserve Bank of India</font></p></div></td><td class="Normal" valign="top"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Thirty per cent.</font></td></tr><tr><td class="Normal" valign="top"><div align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(iv)</font></div></td><td class="Normal"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">to be investment in any of the above three categories, as decide by their Trustees.</font></td><td class="Normal" valign="top"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Thirty per cent. </font></td></tr></tbody></table> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><u><strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not220.htm">NOTIFICATION NO. 220/2005, Dated : November 3, 2005 </a></strong></u></font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">With all that Income Tax exemption schemes, recall what </font><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Lord Justice Harman said regarding the schedule applicable to a tax payer.</font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><b><font color="#800000">“Indeed it has been said that the pleasure of life depends upon the schedule under which man lives.” </font></b></font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><b><font color="#ff0000">Until tomorrow with more DDT</font></b></font></p> <p><font color="#ff0000" face="Verdana, Arial, Helvetica, sans-serif" size="2"><b>Have a nice day. </b></font></p> <p><font color="#ff0000" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Mail your comments to </strong></font><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a> </strong></font></p> </body> </html>