TIOL-DDT 322 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b><font color="#663399" size="3">TIOL-DDT
322</font><br>
14 03 2006<br>
Tuesday</b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income
Tax Form 16 amended</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has
amended Form 16, the certificate of tax deduction issued for income from salaries.<br>
<br>
++ As there is no standard deduction now, the column for standard deduction
is omitted<br>
<br>
++ Consequential amendments to serial numbers<br>
<br>
++ For Column 9, deductions under Chapter VIA, sections 80C, 80CCC and 80
CCD are specified<br>
<br>
++ A note is given that deduction under Section 80C shall not exceed one lakh
rupees<br>
<br>
++ And the aggregate amount deductible under the three sections, i.e., 80C,
80CCC and 80CCD, shall not exceed one lakh rupees<br>
<br>
++ Item No. 13 – Rebate under Chapter VIIIA is replaced with surcharge
as there is no more rebate.<br>
<br>
++ Sl. No 14 – aggregate of taxes is replaced with education cess.<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2006/it06not050.htm">NOTIFICATION
NO. 50/2006, Dated: March 9, 2006</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income
Tax – Finance Act 2005 explained</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has issued
a circular explaining the salient features of the Finance Act 2005, some of
which are</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Revival of
exemption of interest in Non-Resident (External) Account - Section 10(4) (ii)
Revival of exemption of interest on Foreign Currency Deposits - Section 10(15)(iv)(fa)
Revival of exemption on lease rentals paid while acquiring an aircraft or
an aircraft engine - Section 10(15A) Filing of return mandatory for units
in Special Economic Zones Elimination of Standard deduction for salaried tax
payers. Enhancement of the rate of additional depreciation on new machinery
and plant and withdrawal of certain conditions Reserves to be added to profits
and not the sale proceeds on sale of a ship<br>
<br>
++ Extension of weighted deduction for expenditure incurred on in-house R&D<br>
<br>
++ Employer to be allowed entire expenses incurred on implementing VRS<br>
<br>
++ Excluding ‘trading in derivatives’ on recognised stock exchanges
from the ambit of ‘speculative transactions’<br>
<br>
++ Providing for set off of losses of a banking company against the profits
of a banking institution under a scheme of amalgamation<br>
<br>
++ Speculation losses allowed to be carried forward for four years<br>
<br>
++ Rationalisation of the tax treatment of savings. Deduction for entire amount
of interest paid on a loan taken for pursuing higher education.<br>
<br>
++ Extension of tax benefits for developing, operating, maintaining an infrastructure
facility to authorities constituted under a Central or State Act. Elimination
of tax rebate for senior citizens under section 88B and for women under section
88C<br>
<br>
++ Elimination of tax rebate under section 88D for persons with income below
rupees one lakh.<br>
<br>
++ Rationalisation of taxation of income arising from zero coupon bonds<br>
<br>
++ Reduction in rate of tax on royalty and fees for technical services in
the case of a non-resident from 20% to 10%<br>
<br>
++ Dredgers to be treated as qualifying ship for the purpose of Tonnage Tax
Scheme<br>
<br>
++ Truck operators owning upto two trucks exempted from TDS<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2006/it06cir03.htm">CIRCULAR
NO. 3/2006, Dated : Feb 27, 2006</a><br>
</font></p>
<P align=center><B><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt.jpg" width=375></B></P>
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<TD><IMG height=67 hspace=5 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_word.jpg" width=67 align=absMiddle vspace=5><B><I> Actio
non datur non damnificato</I></B></TD>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>An action
is not given to him who has received no damages.</b><br>
<br>
This is called a maxim. What is a maxim?<br>
<br>
1. An established principle. A principle of law universally admitted,
as being just and consonant with reason.<br>
<br>
2. Maxims in law are somewhat like axioms in geometry. They are principles
and authorities, and part of the general customs or common law of the land;
and are of the same strength as Acts of parliament. In Geometry axioms do
not need proof and are as such accepted.<br>
<br>
<b>We will bring you some maxims in the days to come.</b><br>
<br>
<font color="#663399"><b>Words are the lawyer’s tools of trade. - Lord
Denning</b></font><br>
<br>
<br>
<font color="#FF6666"><b>Until Thursday with more DDT<br>
<br>
Have a nice day and a happy HOLI.<br>
<br>
Mail your comments to</b></font> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com
</a></font> </p>
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