VERIFIED BY VISA MASTER SECURE CODE NEW SECURITY FOR CREDIT CARD PAYMENTS
If you are making a payment online by debit or credit card on or after 1st August then you must have register for a extra lever of security .This security lever is called "verified by Visa" for visa cards and "Master card Secure code" in case of Master card enable cards.There are two ways to register
One Go To your bank site now and register your new Security code.
or Register at the time while making payment on or or after 01.08.2009
Remember this security code will be of six digit and you have to enter the same in all prospective payment through your debit/credit card.Now, you can confidently transact on the Internet without worrying about the security of your financial information. With Verified by Visa and MasterCard SecureCode your card will be just as secure over the net as it is over the counter.Verified by Visa & MasterCard SecureCode services are free to cardholders(in some banks may have one time charges) and were developed to help prevent unauthorized use of cards online.Verified by Visa & MasterCard SecureCode protects cards with personal passwords, giving cardholders reassurance that only they can use their cards online.Once your card is activated, your card number will be recognized whenever it's used at participating online stores. A window will automatically appear and your Visa/MasterCard card issuer will ask for your Internet Banking password linked to your card. You'll enter your password to verify your identity and complete your purchase.(read RBI circular given below)
RBI/2008-2009/387
RBI / DPSS No. 1501 / 02.14.003 / 2008-2009
February 18, 2009
The Chairman and Managing Director / Chief Executive OfficersAll Scheduled Commercial Banks including RRBs /Urban Co-operative Banks / State Co-operative Banks /.District Central Co-operative Banks
Madam / Dear Sir
Credit/Debit Card transactions-Security Issues and Risk mitigation measures
The use of Credit/Debit Cards has been increasing in the country. We have been reviewing various options to enhance the security of online card transactions. After extensive consultations with banks/card companies, it has been decided as under:2. It would be mandatory to put in place with effect from August 01, 2009:i) A system of providing for additional authentication/validation based on information not visible on the cards for all on-line card not present transactions except IVR transactions (for which separate instructions will follow).ii) A system of "Online Alerts" to the cardholder for all 'card not present' transactions of the value of Rs. 5,000/ and above.3. Banks are advised to strictly adhere to the instructions and time discipline indicated in this circular. Non-adherence to the directives shall attract penalties prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).4. This directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).5. Please acknowledge receipt.
Yours faithfully
G. Padmanabhan)
Chief General Manager
Tuesday, August 4, 2009
Bangalore Income Tax department, Central Processing Center (CPC) Helpline Number
To assist taxpayers, a limited call center service with two agents has been established at ITD-CPC, Bangalore. Taxpayer queries on status of ITR-V receipt at CPC, Bangalore will be answered on 080-43456700 between 9:30 AM to 6 PM. The service will be available in English, Hindi and Kannada.
Monday, August 3, 2009
Fixed Deposits-Financial or Non Financial Assets?
Dear All,
Please advice whether Fixed Deposits will be considererd as Financial Assets or Non Financial Assets for deriving whether the company is engaged in NBFC activities or not u/s 45-IC of RBI Act, 1934.
Thanks & Regards,
CA. Ajay Goel
Please advice whether Fixed Deposits will be considererd as Financial Assets or Non Financial Assets for deriving whether the company is engaged in NBFC activities or not u/s 45-IC of RBI Act, 1934.
Thanks & Regards,
CA. Ajay Goel
Querry :if the flat value appreciate at the time of registration
Querry :
Dear Members,
Yesterday somebody told me that as per new budget if somebody booked his/her flat for Rs. 20lacs and due to appreciation in market value if his/her flat value came to Rs.30lacs at the time of registration then he/she has to pay stamp duty for Rs.30lacs and also pay long term capital gain tax on the difference figure of Rs.10lacs which will be treated as his/her notional income.
If somebody has any idea about all this then please help me, as the person also told me that it will came in effect from 1st October 2009.
Regards,Vishal Jain
Answer 1
Hi,
LTCG arises on transfer i.e. sale etc. and not on purchase.
As per newly amended provisions u/s 56(2)(VI) difference between registered value and declared purchase price will be treated as income from other sources.
Later on at the time of sale, the registered value will be treated as cost.
The provision is applicable for individuals and HUF.
ThxRajesh Kr, Agrawal, FCA
Answer 2
It is the receipt[ient who will be taxed
Rgds
CA SKChoudhary
Answer 3
YES YOU HAVE HEARD RIGHT. AS PER SECTION 56 NEWLY AMENDED, ANY PROERTY BOUGHT AT LESS THAN ITS REGISTRARE'S ASSESSABLE MAERKET VALUE, YOU HAVE TO T PAY TAX ON THE DIFFRENCE BETWEEN THE DDEED VALUE AND THE REGIASTRAR 'S ASSESSED VALUE FOR THR PURPOSE OF STAMP DUTY.
G L Singhal
Answer 4
Yes.As per the new provision of Finance Act 2009 Rs. 10 lacs will be treated as income from other sources. Suvanjan Ghosh
Answer 5
Dear Vishal ji,
Pl. go thru provisions of new insertion in sec 56 which will be applicable from 01.10.2008RgdsCA.Dinesh Agarwal33/1 N S Road, Kolkata-700001Landline:033 22102227Mobile : +91 97487 80534
Dear Members,
Yesterday somebody told me that as per new budget if somebody booked his/her flat for Rs. 20lacs and due to appreciation in market value if his/her flat value came to Rs.30lacs at the time of registration then he/she has to pay stamp duty for Rs.30lacs and also pay long term capital gain tax on the difference figure of Rs.10lacs which will be treated as his/her notional income.
If somebody has any idea about all this then please help me, as the person also told me that it will came in effect from 1st October 2009.
Regards,Vishal Jain
Answer 1
Hi,
LTCG arises on transfer i.e. sale etc. and not on purchase.
As per newly amended provisions u/s 56(2)(VI) difference between registered value and declared purchase price will be treated as income from other sources.
Later on at the time of sale, the registered value will be treated as cost.
The provision is applicable for individuals and HUF.
ThxRajesh Kr, Agrawal, FCA
Answer 2
It is the receipt[ient who will be taxed
Rgds
CA SKChoudhary
Answer 3
YES YOU HAVE HEARD RIGHT. AS PER SECTION 56 NEWLY AMENDED, ANY PROERTY BOUGHT AT LESS THAN ITS REGISTRARE'S ASSESSABLE MAERKET VALUE, YOU HAVE TO T PAY TAX ON THE DIFFRENCE BETWEEN THE DDEED VALUE AND THE REGIASTRAR 'S ASSESSED VALUE FOR THR PURPOSE OF STAMP DUTY.
G L Singhal
Answer 4
Yes.As per the new provision of Finance Act 2009 Rs. 10 lacs will be treated as income from other sources. Suvanjan Ghosh
Answer 5
Dear Vishal ji,
Pl. go thru provisions of new insertion in sec 56 which will be applicable from 01.10.2008RgdsCA.Dinesh Agarwal33/1 N S Road, Kolkata-700001Landline:033 22102227Mobile : +91 97487 80534
Querry :Treatment of Reciept by Charitable Organisation
Querry :
Hello
If a charitable organisation running some vocational training and thereby selling it's product outside india. whether such receipt are treated as fcra receipt and credited to approved account only or eparately.
What will be the treatement of such receipt.
From B.K.Banka
Answer
It is an income from foreign source and is genrrtally taxable, unless established that it is part of the public charitable objectives of the trust / society.Regards,S. Dutt
Hello
If a charitable organisation running some vocational training and thereby selling it's product outside india. whether such receipt are treated as fcra receipt and credited to approved account only or eparately.
What will be the treatement of such receipt.
From B.K.Banka
Answer
It is an income from foreign source and is genrrtally taxable, unless established that it is part of the public charitable objectives of the trust / society.Regards,S. Dutt
Querrry :Allotment of shares
Querry :
Dear all,
My company which is a Govt limited Co incorporated in July 08. The first Board meeting was held on August 08.
The Co. has formed with a initial capital of Rs 5 lac (paid up capital). In February, 09 the authorised capital was increased to Rs 60 crore. Now the Govt has sent 34 crore towards equity contribution.
The Articles of the Company stated that Board will allot shares.
Can I do allotment in Board meeting or shall I have to go for general meeting because of Section 81(1) (a) which says - " Where at any time after the expiry of two years from the formation of a company or at any time after the expiry of one year from the allotment of shares in that company made for the first time after its formation, whichever is earlier, it is proposed to increase the subscribed capital of the company by allotment of further shares, then, --
"such shares shall be offered to the persons who, at the date of the offer, are holders of the equity shares of the company, in proportion, as nearly as circumstances admit, to the capital paid-up on those shares at that date."
The interpretation of Ramaiya states "that the provisions of section 81 should apply when the Board of Directors proposes to increase the subscribed capital of a company by allotment of further shares after the expiry of 2 years from the formation of the company or after the expiry of one year from the first allotment of shares, whichever is earlier. {Page 1018 of Ramaiya 16th edition 2008]
As my company incorporated is less than two years as on date and second alternative is ruled out that is first allotment, shall I have to go for general meeting for allotment of shares?
Kindly give your views.
RegardsAnirban SenCompany Secretary, KMRCL
Answer 1
Dear All,Section 81 (a) is applicable only when the Company issues share to persons other than existing shareholders. In your case, as you mentioned it is a govt. company, shares are proposed to issue to govt. which is a existing share holder. Therefore, Section 81 (a) is not applicable and the shares shall be issued in Board Meeting.
Regards,Sarvesh BhardwajNew DelhiMobile: 09350301058On
Answer 2
In ur case either of the option provided in section 81 is not full filled and as such according to my opinion u can go for allotment on BOM without going to AGM
slnsc99@gmail.com
Answer 3
Approval at AGM/EGM in terms of Sec. 81 required.
Regards,S. Dutt
Dear all,
My company which is a Govt limited Co incorporated in July 08. The first Board meeting was held on August 08.
The Co. has formed with a initial capital of Rs 5 lac (paid up capital). In February, 09 the authorised capital was increased to Rs 60 crore. Now the Govt has sent 34 crore towards equity contribution.
The Articles of the Company stated that Board will allot shares.
Can I do allotment in Board meeting or shall I have to go for general meeting because of Section 81(1) (a) which says - " Where at any time after the expiry of two years from the formation of a company or at any time after the expiry of one year from the allotment of shares in that company made for the first time after its formation, whichever is earlier, it is proposed to increase the subscribed capital of the company by allotment of further shares, then, --
"such shares shall be offered to the persons who, at the date of the offer, are holders of the equity shares of the company, in proportion, as nearly as circumstances admit, to the capital paid-up on those shares at that date."
The interpretation of Ramaiya states "that the provisions of section 81 should apply when the Board of Directors proposes to increase the subscribed capital of a company by allotment of further shares after the expiry of 2 years from the formation of the company or after the expiry of one year from the first allotment of shares, whichever is earlier. {Page 1018 of Ramaiya 16th edition 2008]
As my company incorporated is less than two years as on date and second alternative is ruled out that is first allotment, shall I have to go for general meeting for allotment of shares?
Kindly give your views.
RegardsAnirban SenCompany Secretary, KMRCL
Answer 1
Dear All,Section 81 (a) is applicable only when the Company issues share to persons other than existing shareholders. In your case, as you mentioned it is a govt. company, shares are proposed to issue to govt. which is a existing share holder. Therefore, Section 81 (a) is not applicable and the shares shall be issued in Board Meeting.
Regards,Sarvesh BhardwajNew DelhiMobile: 09350301058On
Answer 2
In ur case either of the option provided in section 81 is not full filled and as such according to my opinion u can go for allotment on BOM without going to AGM
slnsc99@gmail.com
Answer 3
Approval at AGM/EGM in terms of Sec. 81 required.
Regards,S. Dutt
Querry Sec 80C deduction on STCG
Querry
I have a query on the subject matter as follows: An individual has GTI of Rs. 3.5 lacs out of which business income is Rs. 45,000/ and balance is STCG on STT paid shares.Will the person be eligible to claim Section 80C benefit of full Rs. 1 lac or it will be restricted to only till his business Income.Kindly clarify on availability of Section 80C benefit on STCG.
Best regards,FCA Kavita Agarwal
Answer 1
Section 111A(2) reads as follows:
(2) Where the gross total income of an assessee includes any short term capital gains referred to in sub-section (1), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.
Section 80C is covered by chapter VIA hence cant be claimed on STGC u/s 111A.
Miraj D ShahD J Shah & CoTax Management Consultants2 Elgin RoadKolkata 70002091-33-22871487 / 22870767 / 40034672
Answer 2
u/s 111A of the Income Tax Act, STCG w.r.t sale of equity shares on which STT is paid shall be chargeable to tax @ 15% +SC+Ecess.
No deduction u/c VIA is available on STCG u/s 111A.
Basic exemption is available from such STCG .
In your given case :
Business Income = 45,000
Short Term capital gain from sale of shares on which STT paid = 3,05,000
Gross Total Income = 3,50,000
Less Deduction u/s 80C = 45,000
(limited to business income)
Total Income = 3,05,000
(Represents STCG on which STT paid)
Basic Exemption (Considered Male and < 65 yrs) = Rs. 1,50,000
Balance Rs 1,55,000
Tax @ 15.45% (including 3% Ecess) = 1,55,000 * 15.45% = Rs. 23,948/-
Except for STCG u/s 111A, deduction benefit u/s 80C is available.
Hope this clarifies the matter.
Regards
Sujit Talukder
Answer 3
80C benefit will be restricted to Rs.45000 only
J.P.Agrawal
Answer 4
Hi,No deduction is allowable under Chapter VI A on such STCG, Kindly refer subsection 2 of Section 111A, which is reproduced below.
Tax on short term capital gains in certain cases.111A. (1) Where the total income of an assessee includes any income chargeable under the head "Capital gains", arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund and-
(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and
(b) such transaction is chargeable to securities transaction tax under that Chapter,
the tax payable by the assessee on the total income shall be the aggregate of-
(i) the amount of income-tax calculated on such short-term capital gains at the rate of 49a[fifteen] per cent; and
(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee:
Provided that in the case of an individual or a Hindu undivided family, being a resident, where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such short-term capital gains shall be computed at the rate of ten per cent.
(2) Where the gross total income of an assessee includes any short term capital gains referred to in sub-section (1), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.
(3) Where the total income of an assessee includes any short term capital gains referred to in sub-section (1), the rebate under section 88 shall be allowed from the income-tax on the total income as reduced by such capital gains.
Explanation.-For the purposes of this section, the expression "equity oriented fund" shall have the meaning assigned to it in the Explanation to clause (38) of section 10.]
ThxRajesh Kr. Agrawal, FCA
Answer 5
Restricted to business income or 1 lac whichever is lower
Rgds
CA SKChoudhary
Answer 6
Kindly refer to sectin 111A. Deduction under chapter VIA will be limited toGTI as reduced by STCG i.e. in your case Rs. 45000/-.
Thanks
CA_Pankaj Agrwal
225, Central Zone, Tej Kumar Plaza, HazratganjLucknow 226001
Phone: 4009167 pankaj@mgcoca.com agrwal.pankaj@icai.org agrwalpankaj@gmail.com
Answer 7
He or she will be entiled to claim 80c deduction upto only from his or her other income on which he or she does not claim tax at special rate.Therefore no deduction will be allowed from short term capital gains which is taxed ar special rate
ghoshalco@hsisindia.com
Answer 8
He will only be entiltled to a deduction limited only upto his business income which in this case is only Rs.45000/-
With Regards CA.Vinod Kumar09810969836
Answer 9
Ms. Kavita Agarwal,
Hi. This the good question raised by you. As per Income Tax Act, no one can get benefit of
Section 80C on the STCG & LTCG whether STT paid or not. The individual get benefit of Rs. 45000 only as 80C benefit in the present case. Full benefit of Rs. 1.00, he cant claim. So benefit of 80C is not available on STCG. Please check Section 111A. You will find there that no benefit of 80C is not available on STCG
Thanks & regards,
Vikash Gadia
Answer 10
Dear Ms. Kavita, In your case, deduction u/s 80C will be Rs. 45,000/- i.e. limited to your GTI excluding STCG with STT in terms of Section 111A(2). Thanks & Regards, CA ANAND JHUNJHUNWALA Mobile : 9830355460
Answer 11
The tax implication on the matter as per me is as follows: 80 C will be allowable to the extent of income other than STCG (STT PAid) i.e. RS 45000.00 On the STCG however tax @ 15% will be applicable subject to the exemption limits allowable depending upon Gender and age.
ThanksCA Vikash Tibrewala
I have a query on the subject matter as follows: An individual has GTI of Rs. 3.5 lacs out of which business income is Rs. 45,000/ and balance is STCG on STT paid shares.Will the person be eligible to claim Section 80C benefit of full Rs. 1 lac or it will be restricted to only till his business Income.Kindly clarify on availability of Section 80C benefit on STCG.
Best regards,FCA Kavita Agarwal
Answer 1
Section 111A(2) reads as follows:
(2) Where the gross total income of an assessee includes any short term capital gains referred to in sub-section (1), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.
Section 80C is covered by chapter VIA hence cant be claimed on STGC u/s 111A.
Miraj D ShahD J Shah & CoTax Management Consultants2 Elgin RoadKolkata 70002091-33-22871487 / 22870767 / 40034672
Answer 2
u/s 111A of the Income Tax Act, STCG w.r.t sale of equity shares on which STT is paid shall be chargeable to tax @ 15% +SC+Ecess.
No deduction u/c VIA is available on STCG u/s 111A.
Basic exemption is available from such STCG .
In your given case :
Business Income = 45,000
Short Term capital gain from sale of shares on which STT paid = 3,05,000
Gross Total Income = 3,50,000
Less Deduction u/s 80C = 45,000
(limited to business income)
Total Income = 3,05,000
(Represents STCG on which STT paid)
Basic Exemption (Considered Male and < 65 yrs) = Rs. 1,50,000
Balance Rs 1,55,000
Tax @ 15.45% (including 3% Ecess) = 1,55,000 * 15.45% = Rs. 23,948/-
Except for STCG u/s 111A, deduction benefit u/s 80C is available.
Hope this clarifies the matter.
Regards
Sujit Talukder
Answer 3
80C benefit will be restricted to Rs.45000 only
J.P.Agrawal
Answer 4
Hi,No deduction is allowable under Chapter VI A on such STCG, Kindly refer subsection 2 of Section 111A, which is reproduced below.
Tax on short term capital gains in certain cases.111A. (1) Where the total income of an assessee includes any income chargeable under the head "Capital gains", arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund and-
(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and
(b) such transaction is chargeable to securities transaction tax under that Chapter,
the tax payable by the assessee on the total income shall be the aggregate of-
(i) the amount of income-tax calculated on such short-term capital gains at the rate of 49a[fifteen] per cent; and
(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee:
Provided that in the case of an individual or a Hindu undivided family, being a resident, where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such short-term capital gains shall be computed at the rate of ten per cent.
(2) Where the gross total income of an assessee includes any short term capital gains referred to in sub-section (1), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.
(3) Where the total income of an assessee includes any short term capital gains referred to in sub-section (1), the rebate under section 88 shall be allowed from the income-tax on the total income as reduced by such capital gains.
Explanation.-For the purposes of this section, the expression "equity oriented fund" shall have the meaning assigned to it in the Explanation to clause (38) of section 10.]
ThxRajesh Kr. Agrawal, FCA
Answer 5
Restricted to business income or 1 lac whichever is lower
Rgds
CA SKChoudhary
Answer 6
Kindly refer to sectin 111A. Deduction under chapter VIA will be limited toGTI as reduced by STCG i.e. in your case Rs. 45000/-.
Thanks
CA_Pankaj Agrwal
225, Central Zone, Tej Kumar Plaza, HazratganjLucknow 226001
Phone: 4009167 pankaj@mgcoca.com agrwal.pankaj@icai.org agrwalpankaj@gmail.com
Answer 7
He or she will be entiled to claim 80c deduction upto only from his or her other income on which he or she does not claim tax at special rate.Therefore no deduction will be allowed from short term capital gains which is taxed ar special rate
ghoshalco@hsisindia.com
Answer 8
He will only be entiltled to a deduction limited only upto his business income which in this case is only Rs.45000/-
With Regards CA.Vinod Kumar09810969836
Answer 9
Ms. Kavita Agarwal,
Hi. This the good question raised by you. As per Income Tax Act, no one can get benefit of
Section 80C on the STCG & LTCG whether STT paid or not. The individual get benefit of Rs. 45000 only as 80C benefit in the present case. Full benefit of Rs. 1.00, he cant claim. So benefit of 80C is not available on STCG. Please check Section 111A. You will find there that no benefit of 80C is not available on STCG
Thanks & regards,
Vikash Gadia
Answer 10
Dear Ms. Kavita, In your case, deduction u/s 80C will be Rs. 45,000/- i.e. limited to your GTI excluding STCG with STT in terms of Section 111A(2). Thanks & Regards, CA ANAND JHUNJHUNWALA Mobile : 9830355460
Answer 11
The tax implication on the matter as per me is as follows: 80 C will be allowable to the extent of income other than STCG (STT PAid) i.e. RS 45000.00 On the STCG however tax @ 15% will be applicable subject to the exemption limits allowable depending upon Gender and age.
ThanksCA Vikash Tibrewala
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