Income Tax Jurisdiction (PAN India)

NEW JURISDICTION OF THE PR. CIT/CIT CHARGE; ADDL. CIT/ JT. CIT RANGES & ASSESSING OFFICERS / TAX RECOVERY OFFICERS OF THE PR. CHIEF CIT, STATE WISE  (click below)

http://www.incometaxindia.gov.in/Pages/jurisdiction.aspx

OFFICERS OF THE PR. CHIEF CIT, KANPUR, (UP (WEST) AND UTTARKHAND REGION), KANPUR (click below)

http://office.incometaxindia.gov.in/kanpur/Documents/Jurisdiction/jurisdiction-details.pdf



Source Income Tax Site

Tax Planning- Save tax through your family

Saving Tax through Family! Surprised! Yes, we can save tax through our family members i.e. Parents, Major Children’s and Wife. To Save Tax through Family members we needs to invest in way that our tax burden shifts to our family members and we can take the benefit of Income Tax Slabs. Saving tax Through means not only saving in tax but also means Post Tax higher returns on your Investment.

Here is how we can save tax through our family members.

Through Parents

You can save tax through our own parents as well as through our Parent in-laws. To achieve this goal you needs to give away a portion of your funds, either as a gift or a loan, to your parents as well as your parents in law so that in years to follow your income tax burden becomes lighter as the income on funds transferred by you to them which would bring in income would be taxed in their hands.

Assuming that both the parents are senior citizens. Here’s how you go about it. Income tax deductions allow senior citizens a tax-free income of Rs 3 lakh. To exhaust this limit, say you gift Rs 28 lakh to each parent in cash. Of this, both can individually put Rs 15 lakh in a senior citizens savings scheme that earns a return of nine per cent and pays interest every quarter. Each will get yearly interest of nearly Rs 1.4 lakh. If they invest the remaining Rs 13 lakh each in the long term fixed deposit (FD) of eight-years (assuming interest rate of 7.5 per cent) that pays interest each quarter, it will fetch them an income of nearly Rs 1 lakh annually. That means both parents have earned Rs 2.8 lakh from the senior citizen saving scheme and another Rs 2 lakh from FD each year. A total savings of Rs 4.8 lakh – the tax-free limit (Rs 2.40 lakh) that each parent enjoys. So, they don’t even need to deposit any tax.

Same planning can be done for parents in laws.

Through Major Children

All your adult children are as solid as a rock to help you save your income tax. After October 1, 1998, the provisions relating to gift-tax have ceased to exist. Now you are free to gift away your money to your children without attracting gift tax. Investment made by Major Children out of the gift received by you will be taxed in the hands of your children. If for any reason you are inclined to make gifts to your major children, then you may give interest-free loans to your adult children so as to legally reduce your taxable income.

It is lawful to grant interest-free loans to adult children from your own funds.

Through Your Wife

Married taxpayers can make a substantial saving of income tax by setting up two separate independent income tax files, one each for the husband and the wife. If your wife is already filing Income Tax Return then she may continue filing the return with her new surname and address or with her old surname and address.

Thus, as a result of marriage one should plan a separate income-tax file of the wife. However, care should be taken to ensure that no direct gift or transfer from husband is made to the wife as clubbing provision may get attracted.

Article by CA Sandeep Kanoi

Reasons Why PAN Card is Important in India

Importance of PAN Card in IndiaPAN card i.e. permanent account number is provided by Income tax department to every income tax payer. But do you know that PAN card is compulsory and required by following authorities while doing financial transactions with them:

While opening a new bank account

It is must to produce a photocopy of PAN card while applying for a new bank account be it public / private / co-operative or other banks. However in the recently started financial inclusion program – Pradhan Mantri Jan Dhan Yojana (PMJDY), PAN card was not required by participating banks. Check out PMJDY benefits.

Applying for credit or debit card

Quoting your PAN is must when applying for debit or credit card. Not submitting this will straight away result in application getting rejected. Credit card application rejection can cause problem in getting loan, credit card etc. in future and impact your credit score.

Insurance payment

CBDT has mandated insurance policy holder to furnish PAN details while making any premium payment to insurance companies for amount exceeding Rs. 50,000 in an year.

Purchase or sell of vehicle

If you are are planning to buy or sell vehicle whose cost is greater than Rs. 5,00,000 then submitting a copy of PAN card is compulsory.

Buying or selling property (immovable asset)

Any property transaction for amount exceeding Rs. 5 Lacs requires this number to be mentioned in the property document. Buying or selling is impossible if you do not have this. In case, it is a joint property then PAN details of each person is required.

Jewellery purchase

High value jewellery purchase for amount greater than Rs.5,00,000 (5 Lacs) requires buyer to provide PAN number.

Fixed or cash deposit

Opening a fixed deposit account or cash deposit for amount greater than Rs. 50,000 at any bank requires the permanent account number. Failure to submit the same would result in TDS getting deducted at 20% if the interest amount of FD account exceeds Rs. 10,000 which is higher than the current 10%.

New telephone connection

All telecom companies have been mandated by Government of India to get PAN details of each applicant for normal or cellular connection to keep a tab on terrorism, extortion charges etc.

Investing in securities

Transactions exceeding Rs. 50,000 for equities/mutual fund/debentures/bonds requires investor’s PAN card.

Opening account at broker

For trading in share market, you need to open account with a share broker for which submitting PAN details is mandatory. Failure to provide this will result in rejection of your application.

There our several other reasons for which PAN Card is important, which might not be discussed above.

Article source allonmoney.com

Documents required for PAN for Individuals

Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance vide its notification no. 995 (E) dated April 10, 2015, has amended the Rule 114(4) of Income-tax Rules, 1962 whereby certain additional documents have been prescribed as proof of Date of Birth, which will be effective on immediate basis. But please ensure documents must contain name, date, month and year of birth of the applicant.

The following additional documents have been included in the existing list of Date of Birth documents prescribed in Rule 114(4) of Income Tax Rules, 1962:

* Mark sheet of recognized Board, not school mark sheet. 
* Aadhaar card issued by the Unique Identification Authority of India (UIDAI)
* Elector’s photo identity card
* Photo identity card issued by the Central Government or State Government or Central Public Sector Undertaking or State Public Sector Undertaking
* Central Government Health Service Scheme photo card or Ex-servicemen Contributory Health Scheme photo card

This amendment has given great opportunity to increase the PAN volume.

The tabulation chart for Proof of Identity (POI), Proof of Address (POA) & Proof of Date of Birth (PODB) is as under:

 
Submitted by

Sh.J.K. Grover

Advocate