Deceased Person’s Wealth Tax Liability : 10 Most Important Point Every Legal Heir Should Know !

When a person dies, he leaves behind his legacy and wealth . The government has enacted laws, both under Income Tax Act and Wealth Tax Act on the manner of charging income tax on any income which is generated or will be generated after the demise  on the assets owned by the deceased and also on how wealth tax is to be levied on the taxable wealth of a deceased person.

S0 , for example,  say Mr Shyam was owning Jewelry ,cars , land and a house which was given on rent during his life time. He suddenly expires in the month of April 2013. Now the question is how the tax liability –income tax & wealth tax-has to be discharged by the heir to Late Shyam . Off course, had he remain alive , the return under Income tax Act as well as under Wealth Tax Act would have been submitted by him for Fy 2012-13 . What is the position , after his demise?

This post will concentrate on Wealth Tax provision. For knowing how to deal with the income tax liability on deceased person , please read

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ITR-V Receipt Date Extended For Asst Yr 2012-13 & 2013-14

CBDT has extended the time of receipt of ITR-V receipt at CPC , Bangalore in respect of returns filed electronically for the assessment year 2012-13 and assessment year 2013-14 . The new date is upto 31st March 2014. So, hurry to send the ITR-V to CPC Bangalore by speedpost. Read the excerpt of the CBDT circular date 19/03/2014. [Read more...]

No Penalty For Wrong PAN in The Return!

Contrary to general belief , in my opinion, there is no provision for imposing penalty for quoting wrong PAN in the Return of Income. This is what , I replied to a reader many months ago . Vikash Kumar , Banglore  asked this site as under :

I am a salaried person. At the time of filing Return I noticed that the PAN number, what I had given to Employer at the time of deduction, is not mine(2 digits are in either sequence). What will be the solution? Do I have to face some penalty for illegal action? Is there any way to get my return? 

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Advance Tax Payment Date Extended !

CBDT has extended the date of payment of the March instalment of Advance Tax . This is as per the press release issued by Press Information Bureau (PIB) . Read the press relaease below :
Date of Payment of the March Instalment of Advance Tax Extended from 15th March 2014 to 18th March 2014 by CBDT .

The final instalment of Advance tax for Financial Year 2013-14 is required to be paid on or before 15th March, 2014 by the tax payers who are liable to pay advance tax. These taxpayers can make payments in the designated branches of the authorized banks, electronically or physically, as per law.

The banks are open for half day on 15th March, 2014, being a Saturday. Accordingly, to facilitate payment of this instalment of Advance tax for the Financial Year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of Advance Tax, from 15th March, 2014 to 18th March, 2014. Taxpayers, therefore, can now pay their advance tax instalment by 18th March, 2014 without entailing any consequential interest for deferment.

Have you read Large Numbers of Assessee Don’t Require to Pay Advance Tax Without Even Business Income ” ?

A Large Number of Assessees Do Not Require to Deposit Advance Tax !

In the month of March , you will find many advertisement from Income Tax Department as well as the banks regarding the 15th March deadline for advance tax deposit .While the date is indeed the last of the advance tax installment , this  quick post is for reminding many tax payers – and I repeat – a large number of persons do not require to deposit advance tax at all under the Income Tax Act .They just need to deposit self assessment tax .

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5 Types of Service of Notice May Make Assessment Order Bad in Law !

Scrutiny of your tax return starts with the service of a notice u/s 143(2) of the Income Tax Act .In other words, without proper service of notice u/s 143(2), no assessment order can be passed.The importance of the service of notice can be understood from the simple fact that the assessment orders were cancelled by Tribunals & Courts on the ground of improper service of notice. In this post , I am going to discuss , at least , five types of service of notice by the assessing officer that was  not considered proper service of notice by  higher judicial authority  . But before that , it is important to talk about the legal provision of service of notice for scrutiny assessment.

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CBDT: Return Processed by Entering Wrong PAN Can be corrected .

The online method of filing tax return and processing u/s 143(1) is very good for tax payers but the new system sometimes brings its own problem. For example, it may happen that tax return is processed with a wrong PAN number. What  is the solution for such problem ? Fortunately, the income tax department has given its thought on the problem and issued guideline to the authorities concerned on the way such problem has to be solved.

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