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I will update all the information and updates regarding ICAI,Income Tax & Auditing..
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Last Date of Filing is sunday.

Friends,As 30th September is a holiday i.e. Sunday so the last date of return filing will remain 30th September or it will get extended to 01.10.2012 (Monday).

                Me :     If Income Tax Dept. is closed on that day than Last date will get extended to 01.10.2012.

Kindly Suggest your opinion.

Regards,

Rahul kr Asati

Income Tax Calculation Solution with Rahul kr Asati

Hello Friends, This is the format for calculation of your Income tax liability. Follow the instruction and you can calculate your Tax Payable :-
A	Calculation of Income from Salary
1	Total Salary and / or Pension as per Form 16 ( Excluding all exempt/ non-exempt allowances, perquisites & profit in lieu of salary )
2	Allowances Exempt under Section 10. ( Will not be added to the Total Income from Salary chargeable to Income Tax ). View information on Exempt Incomes & Allowances under Section 10
3	Add : Allowances not exempt ( Use Taxable HRA Amount Calculator )
4	Add : Value of Perquisites and / or Fringe Benefits ( Use Perquisite Value Calculator )
5	Add : Profits in lieu of Salary
Total Income from Salary chargeable to Income Tax (1-2+3+4+5)
B	Calculation of Income from House Property
1	Annual Lettable Value or Rent Received or Receivable
2 (i)	Amount of Rent, which cannot be realized
2 (ii)	Taxes paid to Local Authorities ('0', If self occupied)
3	Taxable amount of Rent Received / Realized{70% of (1 - 2 - 3)]
4	Interest payable on borrowed capital
Income from House Property chargeable to Income Tax (3 - 4)
C	Calculation of Income from Capital Gains (Short Term + Long Term)
1	Income chargeable at Normal Rates
2	Income Chargeable at Special Rates
Total Income from Capital Gains (1 + 2)
D	Calculation of Income from Other Sources viz. Interest, Dividend etc.
1	Income chargeable at Normal Rates
2	Income Chargeable at Special Rates
Total Income from Other Sources
Details of Income Tax at Special Rate included in C and D above:   Amount Rate Income Tax 1. 2. 3. Total
E	Agricultural Income for Rate Purpose only
F	Aggregate Income
G	Calculation of Deductions from Taxable Income View details of deduction available under Chapter VI from taxable income.
1	Deductions under Sec. 80C, 80CCC & 80CCD (Max. Rs. 1 lakh)
2	Deductions under Sec. 80CCF for Investment in Infrastructure Bonds (Max. Rs. 20,000)
3	Deductions under Sec. 80D for Health Insurance. (Max. Rs. 20,000/- for Senior Citizens & Rs. 15,000/- for others).
4	Deductions under Sec. 80D for Health Insurance of parents. (If parents are Senior CitizenRs. 20,000/-, else Rs. 15,000/-).
5	Deductions under Sec. 80DD (Max. Rs. 1 lac.)
6	Deductions under Sec. 80DDB (Max. Rs. 40,000/-.)
7	Deductions under Sec. 80E
8	Deductions under Sec. 80G
9	Deductions under Sec. 80GG
10	Deductions under Sec. 80U
11	Deductions under Sec. 80RRB
12	Any other eligible deduction
13	Total Deductions from Taxable Income
14	Total Taxable Income
H	TDS / Advance Tax Deposited, if any
I	Taxable Income, Income Tax, Educational Cess, Total Tax Liability and Net Income
Description		Income	Income Tax
Exempt Income
Income chargeable at 10%
Income chargeable at 20%
Income chargeable at 30%
Income chargeable at Special Rates
Total
Less : Income Tax on Agricultural Income included above
Income Tax Payable
Education Cess @ 3% of Income Tax Payable
Total Tax liability
Less: TDS / Advance Tax deposited
Net Income Tax due
Income Net of Income Tax Liability
Use Calculator to calculate interest under Section 234 A, B and C.

KTBA has requested to extend the last date

 The Karachi Tax Bar Association (KTBA) has requested to extend the last date, ie, September 30 because its members and taxpayers were facing problems in filing returns due to frequent disturbances, strike, poor law and order situation not only in Karachi but across the country.

Besides day-to-day problems in the web-portal of the FBR is another major obstruction in timely filing of tax returns as the web-portal somehow always stuck up due to some or the another reasons, which kills the time of the taxpayers to prepare the return.

I think, Indian Govt. should try improve their services.

The Income Tax department has sought the dismissal of a plea filed by tea producer McLeod RusselBSE 0.22 % against state's powers to tax transactions retrospectively.

The department maintains that the state has powers to tax with retrospective effect and the amendments introduced in the Finance Bill 2012 were clarifications, and not arbitrary.

McLeod Russel is pleading for dismissal of 36-crore tax claim for its purchase of Borelli Tea Holding fromWilliamson Tea Holdings in 2005. The department maintains that McLeod should have deducted tax.

India's Cabinet is likely to consider shortly more economic reforms, including a proposal to increase the limit for foreign direct investment in the insurance sector, a federal minister said Friday.

Some of these steps, including a decision on increasing the cap on foreign investment in insurance to 49% from 26%, could come as early as next week, Steel Minister Beni Prasad Verma said.

The proposals are aimed at increasing capital inflows into the South Asian nation, where economic growth has slowed to its weakest in nearly a decade. A sharp slowdown in foreign investment inflows had also driven down the value of the rupee.

The government last week unveiled major reform steps, including an increase in the price of subsidized diesel and allowing higher overseas investments in the aviation and retail sectors, as part of its efforts to set its finances in order and revive investor confidence.

On Friday, it announced a deep cut in the rate of tax on the interest that Indian borrowers need pay their overseas lenders.

The proposal on insurance, to become a law, needs to be cleared by both houses of Parliament. The measures on retail and aviation needed just the Cabinet's approval.http://online.wsj.com/article/SB10000872396390444165804578009682398101250.html

Gujarat and Himachal Pradesh Assembly polls

 The Income Tax department will put in place a team of special expenditure observers atairports in view of upcoming Gujarat and Himachal Pradesh Assembly polls.

An officer of the rank of Chief Commissioner will also oversee all the election related deployment of these I-T teams in these two states after the Election Commission recently asked the CBDT to extend its manpower in this regard.

Niira Radia

The Income Tax department has deployed a special team to transcribe the remaining recordings of the telephone conversations of corporate lobbyist Niira Radia after the Supreme Court had recently directed it to do so.

The department, according to sources, had earlier gone into the details of only those portions of recordings which it suspected related to alleged tax evasion.http://articles.economictimes.indiatimes.com/2012-09-12/news/33789707_1_conversations-of-corporate-lobbyist-radia-tapes-niira-radia

Vodafone Tax dispute with Govt,

UK-based Vodafone Group Plc will consider settling the ongoing tax dispute with the Indian government if interest and penalties are waived, said Analjit Singh, non-executive chairman,Vodafone India Ltd.

The tax levy amounts to about Rs.8,000 crore, while interest and penalties make up another Rs.12,000 crore.

“It’s...an option. I don’t know if it’s viable,” Singh told news agencyPTI after meeting various officials of the tax department in New Delhi on Thursday.

Vodafonewas willing to discuss the tax issue with the government and did not want to get entangled in any controversy, Singh added.

“We have made our public position very clear that Vodafone is completely ready to discuss the matter,” he said. “Vodafone is not a company...(that is) confrontationist (or) controversial. This is not Vodafone’s business; its business is telecom.”

Earlier this week, in an interview to Bloomberg, Vodafone group chief financial officer Andy Halford said the company was considering making a provision to cover the legal risks emanating from the tax dispute.

The UK-based telecom firm said a final decision on this would be taken in November.

“We have been very clear in saying that no decision on any potential provision will be made until November,” the company said in an emailed statement on 17 September that reiterated Halford’s comments.

A spokesperson for the UK firm didn’t respond to a late evening email seeking comment on Singh’s statement.

In January, India’s top court ruled in favour of Vodafone in its case against the government over a demand for taxes stemming from the telco’s 2007 acquisition of Hutchison Whampoa Ltd’s Indian operations. In response, the Indian government amended a law retrospectively to tax cross-border transactions from 1 April 1962. The government, however, ordered the review a few days after Chidambaram took charge in August.

Halford said on 14 September that the company will pursue international arbitration if it’s found liable for the taxes even as the Indian government started making more conciliatory comments.

After P. Chidambaramwas reappointed finance minister in August, India softened its stance by asking a committee headed by Parthasarathi Shome to look into the retrospective amendments with regard to indirect transfers.

The government also has the option to waive the penalty and interest applicable to cases that will come under the tax net due to the retrospective amendments. Chidambaram said a few days after taking office that the tax department would not act rashly in the Vodafone case.

“Since the retrospective amendments are now a law, Vodafone will have to pay the taxes, unless the Supreme Court strikes down the amendment or the government decides to introduce changes in the law,” B.M. Singh, a former chairman of the Central Board of Direct Taxes, told Mint earlier this week.

“But the government does have the option of waiving the interest and penalty on all cases affected by the retrospective amendments by issuing a circular,” he said. “Even the Shome committee can only make recommendations. The government will have to go to Parliament to make changes to the Income-Tax Act.”

How the dispute ends will be determined by the Shome committee’s recommendations that will be announced by the end of this month. The retrospective amendment was announced by former finance minister Pranab Mukherjeein this year’s budget speechhttp://origin-www.livemint.com/Companies/9D3wib2FNfiwZrT7c6SXDJ/Paying-tax-is-a-viable-option-Vodafone.html