TIOL-DDT 626 · 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=iso-8859-1"> </head> <body> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 626</font></b><font size="2"><b><br> 01.06.2007<br> Friday</b></font></font></p> <p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Universities and hospitals – income tax exemption – cosmetic changes </b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Clauses (vi) and (vi a) of clause (23C) of section 10 of the IT Act, universities and certain hospitals approved by the prescribed authority are exempted from income tax. Prior to 3<sup>rd</sup> April 2001, the prescribed authority was the CBDT and after that the Chief Commissioner or Director General. Now the rules are amended to make the Chief Commissioner or Director General, the prescribed authority even for the period prior to 3<sup>rd</sup> April 2001 in cases where the Board is yet to pass orders on the applications. Consequential changes are made in the application Form No. 56D.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar changes are made in respect of Charitable and Religious Trusts and Rule 17A relating to applications for registration of charitable trusts.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2007/it07not193.htm" target="_blank">NOTIFICATION NO. 193</a>, <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2007/it07not194.htm">194</a> <strong>and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2007/it07not197.htm" target="_blank">197/2007, Dated: May 30, 2007</a></font></p> <p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Form 16 goes digital - Option To Certify TDS Certificates By Digital Signatures</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per section 203 of the Income-tax Act, every person responsible for deduction of tax at source is required to furnish a certificate of deduction of tax at source to the deductee specifying the amount of the tax deducted and the rate at which the tax has been deducted and other particulars prescribed under rule 31 of the Income-tax Rules. The relevant Form for such certificate in respect of tax deducted at source from income chargeable under the head “Salaries” is Form No.16. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has received representations that some companies have a large number of employees and the issuance of certificates of deduction of tax at source with manual signatures is becoming very time consuming. They have requested that the Department should allow the employers to use their digital signatures to authenticate TDS certificates instead of signing the certificates manually. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be noted that now the requirement of annexing TDS certificates with the return of income has been dispensed with. The TDS certificates are now issued only for the purpose of personal record of the deductees subject to the condition that they may be required to produce the same on demand before the Assessing Officer in terms of section 139C, inserted by the Finance Act, 2007. The TDS claim made in the return of income is also required to be matched with the e-TDS returns furnished by the deductors. Assessing Officers may, if considered necessary, also write to the deductors for verification of the correctness of the taxes deducted or other particulars mentioned in the certificate. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has, in exercise of powers under section 119 of the Income-tax Act, decided to allow the deductors, at their option, in respect of the tax to be deducted at source from income chargeable under the head “Salaries” to use their digital signatures to authenticate the certificates of deduction of tax at source in Form No.16. The deductors will have to ensure that TDS certificates in Form No.16 bearing digital signatures have a control No. with log to be maintained by the employer (deductor). The deductor will ensure that its TAN and the PAN of the employee are correctly mentioned in such Form No.16 issued with digital signatures. The deductors will also ensure that once the certificates are digitally signed, the contents of the certificates are not amenable to change by anyone. The income-tax authorities shall treat such certificate with digital signatures as a certificate issued in accordance with rule 31 of the Income-tax Rules, 1962.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2007/it07cir02.htm" target="_blank">CBDT CIRCULAR NO. 2/2007, DATED 21-5-2007</a></u></font></p> <p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff Value of Brass Scarp – reduced</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has decreased the Tariff Value of imported Brass Scrap from Rs. 4604/ to 4524-. There is no change in the Tariff Value of other products.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_055.htm" target="_blank">Notification Nos.<u>55/ 2007-CUS.,(N.T.) , Dated: May 31, 2007</u></a></font></p> <p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From our Legal Corner</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left">Chairman’s wife on foreign tour – eligible for deduction (of course expenses, not the wife) </b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chairman of a company takes his wife along for a foreign tour. Are the wife’s expenses deductible? “YES”, says the ITAT. We will bring you the order on Monday.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs refunds – no unjust enrichment prior to 2006? </b>For more details and the case law, you will have to wait till Monday. </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more DDT</font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend.</font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>