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If you pay less tax than what you are supposed to while filing income tax return then while assessing the Income Tax Return ,you might be asked to pay the outstanding demand. Income Tax Department sends the intimation under Section 143(1) asking for outstanding demand along with the calculations as to why Income tax department thinks you need to pay more tax. You can go through the calculations and pay the outstanding tax if you agree or you can reject the Outstanding demand. This article talks in detail about how to pay or reject the Outstanding Income Tax that one receives under section 143(1).
What is Assessment of the Income Tax Return?
Every taxpayer has to furnish the details of his income to the Income-tax Department by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department for its correctness. The process of examining the return of income by the Income Tax department is called as Assessment.
Under the Income-tax Law, there are four major assessments as given below:
- Assessment under section 143(1), i.e., Summary assessment without calling the assessee.
- Assessment under section 143(3), i.e., Scrutiny assessment.
- Assessment under section 144, i.e., Best judgment assessment.
- Assessment under section 147, i.e., Income escaping assessment.
Our articlesAfter e-filing ITR: ITR-V,Receipt Status,Intimation u/s 143(1) and Income Tax Notice :Sections,What to check,How to reply discusses various types of Assessments in detail.
Who processes the electronically filed returns?
Electronically filed Income tax returns are processed by Central Processing Center,CPC at Bengaluru. The Infosys team set up an IT-CPC,a centralized processing center for all IT-related processes where all the filed returns were directed validated, scanned, digitized, processed, and printed.The CPC was set up in February, 2009 and Infosys Technologies Ltd was appointed for a period of 5 years as the technology partner and was paid Rs 250 crore for the five-year contract. In Dec 2014 contract for the Centralized Processing Centre (CPC) of the Income Tax (I-T) Department at Bangalore to Infosys was extended by two years up to September 2017.
Earlier all the Income tax returns were assessed by Assessing officers. Now only some cases are referred to Assessing officers.
What is Intimation under the section 143(1)?
Three types of notices are sent under section 143 (1)
- Intimation where the notice is to be simply considered as final assessment of your returns when the return filed by you matches his computation. Nothing is to be done on part of the taxpayer. Keep it with your income tax papers.
- Processing under section 143 (1) would make you eligible for a refund. If you are getting Refund, wait for the transfer into your account.
- Notice of demand where the officer’s computation shows shortfall in your income tax payment for the said financial year.If there is a tax demand then this intimation becomes Notice of Demand under section 156. The notice says “In case of Demand, this intimation may be treated as Notice of demand u/s 156 of the Income Tax Act, 1956. Accordingly, you are requested to pay the entire Demand within 30 days of receipt of this intimation”
Assessment under section 143(1) can be made within a period of one year from the end of the financial year in which the return of income is filed.
Till what Outstanding tax demand we can ignore?
Women in India are proving themselves in all wakes of life. Their importance both within the home and outside is growing in every part of the nation. Many corporate businesses have women in higher management positions and depend on their abilities to a great extent.
Women balance household finances, juggle their salaries and expenses, pay school fees, buy gadgets, gifts and groceries, among many other financial responsibilities. Institutions now realize the increasing power yielded by women in determining their family needs and finances. This has resulted in banks providing different products catering to women and their specific needs.
Several leading banks both in the private and public sectors offer specialized women savings accounts. These often have lower minimum balance requirements when compared to regular accounts. In addition, the banks provide extra features like insurance coverage and rewards points to entice this demographic.
Researching the Fine Print
Before you get excited with the women saving account and sign up for one, you must conduct a thorough research. Reading all the terms and conditions before signing on the dotted line is crucial. Often you will be surprised to know the lower minimum balance requirement is linked to recurring deposit account with the institution. Moreover, the freebies and extras are available for one year only. Checking for hidden costs to avoid surprises at a later date is important. Comparing the features of accounts provided by different banks will help you make an informed choice.
Features of Some Bank Accounts
The public provident fund (PPF) account is opened to accumulate a corpus for meeting retirement needs at banks or post office. To keep the account active an individual needs to invest a minimum of Rs. 500 in a fiscal year. But what if one is not able to invest a minimum of Rs 500 in a year? What happens when PPF account becomes inactive – does investor lose interest or has to close the account or he can he invest in Public Provident Fund.
When does a PPF account becomes dormant?
The minimum deposit amount is Rs 500 and maximum Rs 1.5 lakh per year. If the minimum amount is not deposited in a financial year, PPF account becomes inactive or dormant. Year is counted as from Apr of a year to Mar of next year ex Apr 2015 to Mar 2016.
What happens if PPF account becomes dormant?
Though the amount lying in the PPF’s account will continue to accrue interest during this period, the investor will not be able to avail of a loan against the PPF and won’t be eligible for a premature withdrawal. But if the investor’s PPF account has already matured, it will not earn any interest from the date of maturity. Matured accounts cannot be revived, but penalty will be payable in order to claim the maturity proceeds.
If the PPF account is close to maturity, you can apply for an extension, with or without further contribution, for a period of five years from the date of maturity to be able to earn an interest on the accumulated amount.
Overview of PPF account
PPF comes under the THE PUBLIC PROVIDENT FUND ACT. Features of PPF are given below. Our article Understanding Public Provident Fund, PPF explains in detail about the investment amount, interest rate, power of compounding, who can open, where can one open etc.
EPFO has launched a mobile application App and other phone-based services to access PF account details for its over 3.54 crore subscribers, 49.22 lakh pensioners and 6.1 lakh employers. This article covers ,What are the new services introduced by EPFO? What is Mobile App of EPFO? What is SMS based EPF service? What is Missed Call service? How to use them?
Overview of the EPFO Mobile App, SMS service, Missed Call
EPFO has launched a mobile application App and other phone-based services to access PF account details. The services are
- Mobile Application (EPFO Mobile App)
- SMS based UAN Activation and
- Missed Call service
EPFO Mobile App: Once the new mobile application from the EPFO website is downloaded, the members would be able to activate their UAN accounts from their mobile phones and can also access their accounts to view monthly credits and details available with EPFO. EPF pensioners can also access their pension disbursement details through this mobile app. The employer can also view remittance details. EPFO’s new mobile application is available on EPFO’s website and is in APK format so works only on Android phones. Android application package (APK) is the package file format used by the Android operating system for distribution and installation of application software and middleware.
SMS Service: A new SMS-based UAN activation service was also launched, which enables members to activate their accounts by sending an SMS to 7738299899. Once UAN is activated, the member becomes eligible for all services under the programme such as credit alerts, passbooks and the like. This new service is helpful mainly to those members who may not have easy access to computers or smartphones. EPFO already has in place a Short Code SMS service, which helps members get their details along with contribution and PF balance through an SMS to 7738299899.
The format of the SMS is EPFOHO UAN followed by first three characters of preferred language.
For example, if you would like to receive SMS in English, you should send an SMS as EPFOHO UANENG to 77382 99899. The EPFO would send the members details available with it along with details of the KYC seeded, last contribution and Total PF balance.
Missed Call:A missed call to 011 22901406 ,at no cost, will fetch the user all the required details. This facility is available only to UAN members.
EPFO Mobile App
EPFO has been upgrading itself on technology front to access the EPF account access and transfer of EPF account. The new EPF Mobile App is another initiative to let people access there EPF details. Mobile Application can be used by employees, pensioners and employers.
How to Download the Mobile App?
You can download the mobile App from EPFO webpage to download EPFO Mobile App. It is in APK format so works only on Android phones. Android application package (APK) is the package file format used by the Android operating system for distribution and installation of application software and middleware. The App is not available at Google Play store. When you download please turn-on Allow Installation of apps from unknown sources under the Security settings on your android phone. The App looks as shown in image below:
Employees and EPF Mobile App
- They can activate their UAN (Universal Account Numbers)
- They can access EPF account for viewing monthly deposits through the passbook option
- They also view your EPF account details available with EPFO.
How to activate UAN on EPFO Mobile App?
If you have not activated the UAN then you can do it through the Mobile App. The process is similar to activating UAN on Desktop which is covered in our article UAN or Universal Account Number and Registration of UAN. First Get your UAN number. Visit http://uanmembers.epfoservices.in/ and click on the Know your UAN Status blinking on the top left corner.
In the Mobile App
- Select Member. You will see two options Activate UAN and Balance/Passbook.
- Select Activate UAN.
- Enter details such as Establishment Code, Extn(000), Employee Number and UAN and your Mobile number. Establishment Code and Employee number are from the PF Number or Member ID , which is usually available in the payslip issued by the employer. If any details are missing, you need to contact your employer.
- Check on the Declare above details pertain to me and are correct situated below the UAN activation form.
- Click Activate
How to check Balance / Download Passbook through EPFO Mobile App?
In the Mobile App
- Select Member. You will see two options Activate UAN and Balance/Passbook.
- Select Balance/Passbook.
- Enter 12 digit UAN number
- Enter Mobile Number tied to your UAN account.
The details are as shown in image below. By Clicking View Passbook you can see the passbook.
EPF pensioners and EPFO Mobile App
Pensioners can access their pension disbursement details through the mobile App. In the EPFO Mobile App
- Select Pensioner.
- Enter PPO number and Date of Birth.
- Click Submit.
Employers and EPFO Mobile App
Employers can check EPF deposit or remittances status through EPFO Mobile App.
In the EPFO Mobile App
- Select Employer.
- In TRRN Status, enter the 13 digits TRRN (Temporary Return Reference Number)
- Click Show Status
- UAN or Universal Account Number and Registration of UAN
- FAQ on UAN number and Change of Job
- Salary, Net Salary, Gross Salary, Cost to Company: What is the difference
- How to get information about EPF balance : Annual Statement, SMS, E-Passbook
- Tax on EPF withdrawal
EPFO has launched a mobile application App and other phone-based services to access PF account details for its subscribers. EPFO has been upgrading itself on technology front to access the EPF account access and transfer of EPF account. The new EPF Mobile App, SMS Based service and Missed Call are other initiatives to let people access there EPF details. Did you use EPFO Mobile App? Did you use EPFO SMS Service? Did you use EPFO Missed Call service?How was the experience?
The Reserve Bank of India (RBI) cut the repo rate by 50 basis points in its fourth bi-monthly policy review held on 29 Sep 2015.From opening deep in the red, key equity indices staged a marked recovery on back of an unexpectedly high interest rate cut by the Reserve Bank of India. The Indian equity markets closed 162 points up. An easing of key lending rates is expected to restore investors’ confidence, prop up sales of interest in sensitive sectors like auto-mobile, capital goods and real estate. What are the factors that affect the stock market or atleast the media related to stock market. Every time the event approaches financial media goes into overdrive, will Rate cuts happen? How will fiscal deficit be controlled? The inflation numbers?
- WHY IT IS IMPORTANT: RBI raises or cuts the interest rates,talks about the growth forecast,inflation.
- FREQUENCY: Every 2 months. RBI conducts the Bimonthly meeting overview of which can be found at RBI’s webpage https://rbi.org.in/scripts/Annualpolicy.aspx .
Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI)
The key policy or signalling rates include the bank rate, the repo rate, the reverse repo rate, the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR). RBI increases its key policy rates when there is greater volume of money in the economy. In other words, when too much money is chasing the same or lesser quantity of goods and services. Conversely, when there is a liquidity crunch or recession, RBI would lower its key policy rates to inject more money into the economic system.
What is repo rate? Repo rate, or repurchase rate, is the rate at which RBI lends to banks for short periods. This is done by RBI buying government bonds from banks with an agreement to sell them back at a fixed rate. If the RBI wants to make it more expensive for banks to borrow money, it increases the repo rate. Similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate. The current repo rate is 5.50%.
What is reverse repo rate? Reverse repo rate is the rate of interest at which the RBI borrows funds from other banks in the short term. Like the repo, this is done by RBI selling government bonds to banks with the commitment to buy them back at a future date. The banks use the reverse repo facility to deposit their short-term excess funds with the RBI and earn interest on it. RBI can reduce liquidity in the banking system by increasing the rate at which it borrows from banks. Hiking the repo and reverse repo rate ends up reducing the liquidity and pushes up interest rates.