Good news to those who paid the Advance Fringe Benefit Tax (FBT) for the I Quarter of FY2009-10 and wondering how to get that back. The FBT was later on abolished in the Finance Act (2), 2009.
In a circular, the IT dept has clarified that the Advance tax in respect of FB paid by the assessee can be adjusted against the Advance Tax for the FY 2009-10. If you do not have any tax liability, then you can claim refund of the FBT in their returns.
Below is the circular for your reference.
Cheers,Gopal
CIRCULAR...
RBI hikes CRR by 75 bps to 5.75% in two stages
The Reserve Bank of India (RBI) has hiked its cash reserve ratio by 75 bps to 5.75% as against 5% at its credit policy meet today. The move will be implemented in two stages. The first 50 bps hike will come into effect on February 13 while the next 25 bps hike will be effective February 27. A CNBC-TV18 poll had forecasted a 50 bps CRR hike. The move will result in a mop-up of Rs 36,000 crore by February end.
The central bank has left unchanged the reverse repo and repo...
CA Exam results for Nov-09 exams postponed to 1-Feb-2010.
Results of the Chartered Accountants PE–II, PCE and IPCE held in November, 2009 scheduled to be announced on 29th January, 2010 will now be announced on 1st February, 2010. – (28-01-2010).
The results of the Chartered Accountants Professional Education (Examination-II), Professional Competence Examination and Integrated Professional Competence Examination held in November, 2009 scheduled to be announced on 29th January, 2010 will now be announced on 1st February, 2010.
Inconvenience caused is regretted.
(G....
Story with a message : Don't judge people by the look & act - understand them
As she stood in front of her class on the very first day of school, she told the children an untruth. Like most teachers, she looked at her students and said that she loved them all the same. However, that was impossible, because there in the front row, slumped in his seat, was a little boy named Teddy Stoddard.
Mrs.Thompson had watched Teddy the year before and noticed that he did not play well with the other children, that his clothes were messy and that he constantly needed a bath. In...
100th Post & Completion of 1 year of blogging.
Friends,
Thanks to Sendil (can say my statistician), who reminded me that I am due for my 100th posting and that can coincide with the completing of 1 year of my blog.
Yes, my first posting was on 25th Jan 2009. Time flies and today the blog is 1 year old and here is my 100th posting. I thought I won't achieve this milestone of 100 in 1 year. But thanks to the holidays, am able to spend time for blog.
Anand & Bala will shout at me for mentioning their names again. But, at the cost of their...
2 sets of Standards under Companies Act for achieving IFRS convergence
Friends,
The much awaited plans for the realistic IFRS roadmap is here. It has been decided to go in phases to facilitate smooth convergence.
Following is the press release issued by the Ministry of Corporate Affairs laying down the IFRS convergence road map, on Friday, January 22, 2010.
It is a good opportunity for the members to get into the IFRS, as we have time and also can learn from the experience of the first set of people adopting the IFRS.
Cheers,
Gopa...
Results of the Chartered Accountants Exams - Nov 2009
Here comes the notification on the Announcement of results for the CA Exams conducted during Nov-09.
Good Luck to all those who are awaiting the results. I wish you all a Successful career as a Chartered Accountant.
Cheers,
Gopal
January 21, 2010
The results of the Chartered Accountants Professional Education – II, Professional Competence Examinations and Integrated Professional Competence Examination held in November, 2009 are likely to be declared on Friday, the 29th January, 2010...
IPO - Thangamayil Jewellery Ltd - All that glitters is not gold!!!
All that glitters is not gold - Yes, here comes another Public Issue - by a Gold Jewellery business. It is not a high end business, but a well known business in the city of Madurai (in Tamil Nadu - southern part of India).
There are very many players in this industry and not many get into the Stock Market to raise funds for the business. The reasons being:1. They all operate in an unorganised sector2. Most of the purchase and sales are in Cash3. Lot of competitions and individual's taste...
Third Quarter Review of Monetary Policy - Jan 2010
The RBI will review the Monetary Policy (III Quarter) on 29th Jan 2010. It has more impact on the personal finance and liquidity.
I feel that the Cash Reserve Ratio (CRR) would be increased by 50bps from the current level of 5%. Am not expecting any change in the repo or the reverse repo rates. Even if there is a change, it would not be more than 10bps.
What are the implications as an individual? As we all know that when the CRR is increased, the banks lending quantum decreases. So, they require...
Internal Audit of Stock Brokers
Today (23rd Jan), I attended the Professional Development meet of the Bangalore chapter of the Institute of Cost & Works Accountants of India. The topic was "Mandatory Internal Audit of Stock Brokers", presented by CMA.K.N.Mahesh. He is a Commerce Graduate and a Fellow Member of the ICWAI. He currently practicing as a Cost Accountant. He has experience in the Internal Audit of the Stock broking outfits, per the SEBI guidelines.
It was a nice session, well attended by members. He approached...
Is the stock market in for a correction?
The Nifty today (21st Jan 2010) fell by 128 points and the Sensex fell by 423 points, due to the negative trend in the Asian markets and the US markets. Adding fuel to the fire, the results of the majors are also not good - L&T, BHEL. So, the markets tumbled today. It may fall further as the US market is also not doing good - thanks to Obama being harsh on the banks. With the F&O expiry approaching for the Jan 2010, you can see some negative trends till end of Jan 2010.
If the market falls...
Some Good News - Tax Exemption limit may be increased
With the growing cost and not a matching increase in the income, the Government is mulling over increasing basic exemption threshold for Income Tax liability.
I feel that a further exemption of about Rs.20,000-Rs.30,000 would be a good gesture for those, who did not get any increment during the last few years. This will ensure few bucks in the pocket of the individual and a hole in the government kitty.
Government is not keen on reducing the tax rates for the Corporates, citing that the exemptions...
Quote your PAN to save excess deduction of tax from your income
The CBDTCentral Board of Direct Taxes (CBDT) in its notification stated that those who do not provide their Permanent Account Number (PAN) to the deductor, the tax to be deducted (Tax deducted at source - TDS) from their income (salary, fee, etc.,) would be at 20%. There are various rates ( 1% to 10%) for the TDS depending on the nature of transaction. This new notification will be effective 1-Apr-2010.
What are the impacts of this notification:
Quote your PAN in all your communications, bills...
IFRS based accounts for Small and Medium Enterprises (SME) deferred
Recently read an article in Economic Times on the IFRS adoption by Small & Medium Enterprises.
It is well known fact that change is very difficult. But if is for good, then it is not to be taken as a difficulty and should be welcomed. No pain - No gain. Given that there is a cost involved in adopting IFRS by SMEs, it was felt that the adoption to be deferred. Also, it need to be noted that the IFRS for SMEs are little lenient than the regular ones.
With the Income Tax department, still not...
Jubilant Fooodworks IPO - Will Dominos dominate the stock market
Jubilant FoodWorks which operates the Dominos Pizza, has opened its IPO on 18th Jan and closes on 20th (i.e.today). Those who have an appetite ( I mean risk), you can invest in this IPO.
This is not a full fresh issue by the company. The promoters are offloading their shares to get listed and also issuing fresh shares. The ratio is Promoters offload (82%) and fresh issue (18%). So, the entire money is not going to the company and only 18% of the proceeds (i.e. Rs.54 crores, at the lowest price...
Post Office Savings Schemes like NSC, KVP, MIS back in favour
Friends,
Last week I posted on the benefits of the Post office saving schemes, I saw on The Economic Times yesterday in their ET Investors Guide an article titled "Savings schemes like NSC, KVP, MIS back in favour".
The author Bakul Chugan Tongia has summarised all the schemes and their benefits. Am happy that he also voiced my views. Request the readers to go through the same.
The link (copy paste in your browser) : http://economictimes.indiatimes.com/features/investors-guide/Savings-schemes-like-NSC-KVP-MIS-back-in-favour/articleshow/5456987.cms
Cheers,
Gopal
For...
Help for a cause !! Please Vote !!!!
Here is a unique opportunity to reach out and impact thousands of lives. Yes, sitting at your desk and vote can help educate 40,000 young Indians all over our country!
One of India’s most trusted and credible NGOs, GiveIndia is taking part in a competition on Facebook to win a US$1 million grant. The winner will be the NGO that gets the highest number of votes from Facebook users. The prize of $1 million will help put or keep 40,000 children across India in school for one year!
Imagine we coming...
Tribute to Jyoti Basu
Jyoti Basu an icon in Indian Politics is no more with us. He is highly respected for his commitments and convictions.
He was instrumental in the formation of CPI (M) in 1964. In his political career spanning over 6 decades, he led the party by example.
He holds the longest serving Chief Minister for a State - 23 YEARS. If you add the period of being a Deputy Chief Minister, he scores a clear Quarter Century. God is impartial - otherwise he would have scored a CENTURY in another 4 years.
India...
ELSS : Equity Linked Savings Scheme
When you are looking at the stock market going up and still afraid to invest in the market, here is an option for you - It is a mix of Mutual Fund and a tax saving instrument. It is called the Equity Linked Savings Scheme. Let us see the benefits of the ELSS:
Benefit under Section 80C of the Income Tax (within the overall limit of Rs.1,00,000)
The dividends declared is exempt from tax
The scheme is for a minimum period of 3 years. This is called Lock in period
Since the Fund manager knows that...
Wisdom atlast - Worth reading
I got this story through a mail forward. Thought of sharing, as it has lot of values.
There is very instructive incident involving the life of Alexander, the great Greek king. Alexander, after conquering many kingdoms, was returning home. On the way, he fell ill and it took him to his death bed. With death staring him in his face, Alexander realized how his conquests, his great army, his sharp sword and all his wealth were of no consequence.
He now longed to reach home to see his mother’s face...
Voluntary Contribution to Employees Provident Fund
Those who are employed and getting salary contribute towards Employees Provident Fund @ 12% on their Basic and DA. The employer will also contribute an equal amount. This is also an excellent investment opportunity. The rate of interest offered currently is : 8.5%. The interest earned is not taxable. The contribution made from your salary are eligible for deduction under section 80C (upto Rs.1,00,000).
There is another provision also in the Employees Provident Fund scheme. You can contribute...
Public Provident Fund (PPF)
Here comes the darling of all the Post Office Schemes. The Public Provident Fund (PPF) has many benefits. It can be used both as an Recurring Deposit and as well as a tax saving investment. It has many benefits. But it is a long term investment scheme spanning over 15 years.
Opening Of Account
PPF Account can be opened by any adult in his/her names or as guardian of a minor.
Such account can be opened in any Head Post-Office, G.P.O., any Selection Grade Post Office, any branch of the State Bank...
POST OFFICE MONTHLY INCOME SCHEME (POMIS)
Having seen the PORD in the last post, let us see the POMIS.
Name of the Scheme : POST OFFICE MONTHLY INCOME SCHEME (POMIS)
Interest : 8% monthly
Maturity Period : 6 years
Limit of Deposit
Min : Rs. 1,500
Max: Rs.4,50,000 for single Account & Rs.9,00,000 for joint Account
The maximum limit to be held by an individual will be the deposits in his/her single accounts together with his/her share of the deposits in the...
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