: For Finance Professionals & Students

Monthly Archives: June 2014

ICAI Suggestion on Disallowance of expenditure incurred in relation to income not includible in total income under section 14A of the Act:
As per the existing provisions of section 14A of the Act, no deduction shall be allowed in respect of expenditure incurred by a taxpayer in relation to income which does not form part of the total income under the Act. Further, Section 14A of the Act states that the provisions of this section shall also apply in cases where an assessee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income under this Act.

Important announcement regarding updation of contact details in e-Filing Portal must be updated by an assessee – PINs Validation extended up to 24 hours – (Updated on 27.06.2014)
Income-Tax Department uses the registered contact details (Mobile number & E-mail ID) for all communications related to e-Filing. It is mandatory that all tax payers must have a valid contact details registered in e-Filing portal.

Assessee is compulsorily required to get its email ID and password registered at Further, maximum permissible usage of each of them is 4 times only. We know that most of the assessees in India do not have email ID. So, nowadays consultants have started to create additional email IDs. This takes substantial time and in future we have to remember those IDs and their passwords.

The admission fee for higher studies is usually not a small amount and many parents and students find it difficult to arrange for it. Thankfully education loans are available in such situations that enable students to pursue their higher studies smoothly. Additionally, one can also save on taxes while incurring this expense. Before we move on to the tax deductions for this, here are some essentials you need to know while applying for an education loan.

1. Who can use this Return Form?
This Form can be used a person being a firm, LLPs, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form.

The insistence on manual filing of TDS certificates before AO for verification of refunds claim should be done away with.
The tax deductor’s duties and obligations in terms of making information compliance and also depositing the deducted amount is onerous and they are not compensated for that. Therefore, some compensation for them should be considered. This can be in terms of a small commission to be deducted as business expenses by them to fulfil their obligations.

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