The restaurant at the end of the Universe

Came across a wonderful blog explaining the advances we had made - which is now lost in the mists of time - and by the burning down of our heritage - Nalanda and Somnath and all other places which fell under he sword and flame of the heathen barbarians.

This is the link

http://slezall.blogspot.com/

I would recommend everyone have a look, lots and lots of good stuff here

Here i reproduce verbatim one blog, just to show the extent of advancement we had

Value of Pye in Atharva Veda

Value of Pye in Athrava Veda

The transliteration would be as follows -

GoPeeBHaagYa MaDHuvRaaTa SHrunGiSHoDaDHiSanDHiGa
KHaLaJeeViTaKHaaTaaVa GaLaHaaLaaRaSanDHaRa

I have used capitals for those consonants which have to be deciphered for the values. Some consonants which have the emphatic pronunciation have been spelt along with H.

Tamilians are at a disadvantage. Unfortunately Tamil script has very few consonants. I know that Ka in Tamil is written for as many as four sounds - Ka, KHa, Ga and also GHa. So for writing GanGaa in Tamil, one would write KanKaa. Yet Tamil has two "na"s and two "LLa"s. They say that the second "LLa" is difficult to explain to a non-Tamilian.

Devanagaree script has better distinction. Kannada is even more detailed on the vowels, since it also distinguishes "ey" both as short and long, i.e. "ey" in "get" is written differently than "ey" in "Gate". Likewise there are short and long "oe"s in Kannada, to spell "notice" and "goat" differently.

Coming back to value of Pye, Values of identified consonants are to be put in by the "Sootra"s, which are also embedded in the jpg file. They are -
Kaa-di Nava, i.e. Ka =1, KHa = 2, Ga = 3, GHa = 4, GNa = 5, Cha = 6, ChHa = 7, Ja = 8 and JHa =9
Taa-di Nava, i.e. Ta =1, THa = 2, Da = 3, DHa = 4, NNa = 5, ta = 6, tHa = 7, da = 8 and dHa =9
Paa-di Panchak i.e. Pa =1, PHa = 2, Ba = 3, BHa = 4, Ma = 5
Yaa-dyashtaka i.e. Ya =1, Ra = 2, La = 3, Wa = 4, sha = 5, SHa = 6, Sa = 7, Ha = 8
Ksha-sh Shoonyam i.e. Ksha = 0

So, the sootras provide 4 options each for 1, 2, 3, 4 and 5, three options each for 6, 7, 8, two options for 9 and only one option for zero. Options help to put values into verse form. In Americapeople get telephone numbers which can be spelled to denote the activity of the company. For example, the company publishing a magazine “SkyMall” has its number 1-800-759-6255. When spelled, it becomes 1-800-SkyMall, because number 7 on telephones stands for letter S, number 5 for K and so on.

In this shloka for value of Pye, the first line is also an ode to Lord Krishna, as is clear from the mention of Gopi-Bhagya. The second line is ode to Lord Shiva, as can be read from "Gala-Haalaarasam-Dhara", one who wears a serpent around his neck. So, the shloka is both, prayers and value of Pye!!!

From the scientific mode of calculator available on computers the value is

3.1 41 59 26 53 58 97 93 23 84 62 64 33 83 27 95

Value from Shloka as deciphered is -

Go Pee BHaag Ya Ma DHuv Raa Ta SHrun Gi SHo Da DHi San DHi Ga
3 1 4 1 5 9 2 6 5 3 5 8 9 7 9 3
KHa La Jee Vi Ta KHaa Taa Va Ga La Haa Laa Ra San DHa Ra
2 3 8 4 6 2 6 4 3 3 8 3 2 7 9 2

In the shloka, the last digit denoted by the letter Ra becomes 2. In the calculator it is 5. All the rest 31 digits are identical.

The point of curiosity is, why did Rushees of Athrva-Veda need such accurate value of Pye to the thirty-second digit? Simple explanation is that they have been great astronomers. Most eminent among them was Maharshi Bhrugu, as acknowledged by none other than Lord Krishna in the tenth chapter in Geetaa. "MaharsheeNNaam Bhruguraham"!! He composed Bhrugu-samhitaa, which is the reference work for all uses of astronomy, most common being in Astrology.

Astronomy is study of Universe, Geography is study of only the Earth. And to get exactitude in the study of astronomy, orbits, spatial positions and velocities of different planets with reference to a fixed reference, the Sun, such value of Pye was needed. How such accurate value was derived is another curiosity. But we know that the mathematics of Indian almanacs gives accurate prediction of eclipses, their exact timings - sparsh-kaala, moksha-kaala and geographical boundaries of areas from where an eclipse would be visible, also whether it will be a whole eclipse, Kha-graasa or partial, Khanda-graasa. The base for all this is Bhrugu-Samhitaa, the sage, who had the grasp of the whole Universe, MaharsheeNNaam Bhruguraham!!

In defence of the Tata Nano Part 2

So I wanted to further complain about the carping being done about the TATA Nana.

Observe:

You probably haven’t heard of Goggomobil. Goggomobil was car made in Germany from 1955 to 1969. This was the period of time that Germany was still getting on her feet economically, not unlike India today. The Goggomobil was…

all of 9′6″feet long and 4′3″ wide. It had a 15HP engine mounted in the rear (like a VW bug or the Nano) and 10″ wheels. It seated 4 and (unlike the Nano) had 2 windshield wipers. They made 250,000 of them, so someone liked them.

Look at this model below. And I mean the car......
This then was the Fiat 500 which was 9′9″ long, 4′4″ wide, and weighed a tiny 1100 pounds. They made 3.6 million of them.

Then, of course, you can’t forget the the Subaru 360. Japanese style cute. This was 9′10″ long, and 4′3″ wide. It weighed a whopping 900 lbs. Now, if the Subaru 360 looks like a bit of freak to you, you have willfully chosen to ignore history. This was not some Japanese only oddity. The Subaru 360 was the first car Subaru sold in the US, back in 1968. This is what launched Subaru US. (Consumer Reports said it was a death trap, by the way.)

All of the cars above are smaller than the Tata Nano. None of them are as fast, or as safe. The Subaru is unique in getting better gas mileage (66MPG by US test method).

Stop whining about how small the Nano is! It’s not small! It’s not (within its market segment) dangerous. It’s not polluting. Read some history. Read some facts. This......is the car of the future.

In defence of the Tata Nano

Automobiles are one of the single largest things we do. Transportation is a huge slice of the economy. Where roads and bridges can and cannot go is a huge social issue. The design of cities, land use, environmental concerns, tax laws, sustainable wage… all these things are touched and shaped by cars. So cars a pretty good pulse on society.

Enter the Tata Nano.

In case you live in a cave, the Tata company in an Indian super company. It includes 98 companies selling in 85 countries. 20% of global steel production is by Tata. Tata’s dealings make up 3.2% of India’s GDP, making them the de facto majority shareholder of an entire country, much like GE in America.

Despite all that, when Tata announced that their automobile division would make a car for $2500 no one really cared. It was assumed that they would make yet another auto rickshaw. But, Tata had been underestimated. What they produced was not some spindly three-wheeler. It was a real car in every way. Observe the specs:

SOHC 624cc Fuel injected Twin

12″ wheels

4 wheel hydraulic brakes

Meets current India and EU emissions and safety requirements.

So naturally, everyone hated it. Now, I shouldn’t say everyone. We, the middle class never-owned-a-car-before people of India are pretty excited, actually. But people who will never buy one are really upset.The number one complaint: because it is so cheap people who didn’t own cars before will buy them increasing global warming and reducing available fuel supply, raising prices.

Well, thats just plain dumb. People who can afford the Tata Nano are using motorcycles and auto rickshaws. The vast portion of which are fitted with early model 2 cycle engines. World wide, two strokers make up about 5% of the engines. And 32% of the pollution. Replacing wheezing 2 strokes with Nanos reduces emissions.

Number two complaint: its not safe.

Again, just plain dumb. Nothing is 100% safe. Life is risk. Successful life is risk management. Yes, driving a Tata Nano is not as safe as hiding in bunker. Who cares? The people who are buying Nanos are people who were driving motorcycles previously. They are safer in Nanos than on motorcycles. Again net reduction in problems. They also meet EU standards. Since pollution is based on parts per million of pollutants rather than pollutants per car, even that doesn’t tell the whole story. A Tata Nano puts out significantly less pollution per car than say.....a Volkswagen Golf, because the Tato has a significantly smaller engine of approximately the same efficiency per cc.

Third complaint: They will reduce global fuel supply. *sigh* Ok, there might be some truth in this, but I just can’t get my underwear in bunch about it. As long as SUV s are the preferred form of transportation in the US, I don’t think anyone in the US has right to complain about a 12′ long car that gets over 50 MPG.

Fourth complaint: No, I’m not joking. People really complain about this: the wheels are too small. This is too is very dumb. To this issue and all the above I raise the issue of the kei car. Kei cars are a special legal qualification of cars in Japan. If a car meets certain kei car guidelines it can be sold as a kei car, saving both the purchaser and the producer a bundle of money. The requirements are 11′ feet long, 4.5′ wide, 6.5″ tall (they make kei spec vans and four by fours as well, hence the generous height) and a 650cc engines. In one form or another the Japanese have been making kei cars for more than 50 years. As of 2004, they were making 2 million of them a year. Many a kei jidosha (light car) has the similar features to the Nano.

So why has the Nano raised such ire in a country it can’t even be sold in?

Here’s the human issue that the first paragraph eluded to: though people complain that they shouldn’t be sold because they are unsafe, I never here this argument about motorcycles and bicycles, which offer no protection what-so-ever in a crash. So there must be an underlying emotional reason that people feel they are unsafe. I think people have an emotional need to drive a very large gas guzzling car. The existence of people who don’t have that need offends them, so they invent data (which is wrong) that says those people shouldn’t be allowed to buy the car.

The person who drives a car purely out of regard for safety and makes the majority of their other decisions out of a sense of what is safe, is leading a small boring life. Relationships consist of risk. People who take no risks have no relationships. So these people end up pretty unfulfilled. When they see people taking risks and getting more enjoyment out of their life, it really pisses them off, so they try and legislate any risks others might want to take about of existence.

Income Tax 2

1. What is Salary income?
Income under heads of salary is defined as remuneration received by an individual for services rendered by him to undertake a contract whether it is expressed or implied. According to Income Tax Act there are following conditions where all such remuneration are chargeable to income tax:
• When due from the former employer or present employer in the previous year, whether paid or not
• When paid or allowed in the previous year, by or on behalf of a former employer or present employer, though not due or before it becomes due.
• When arrears of salary is paid in the previous year by or on behalf of a former employer or present employer, if not charged to tax in the period to which it relates.

2. What type of income falls under Salary income?
Under section 17 of the Income Tax Act, 1961 there are following incomes which come under head of salary:

• Salary (including advance salary)
• Wages
• Fees
• Commissions
• Pensions
• Annuity
• Perquisite
• Gratuity
• Annual Bonus
• Income From Provident Fund
• Leave Encashment
• Allowance
• Awards

3. What is Leave Encashment?
Leave encashment is the salary received by an individual for leave period. It is a chargeable income.

4. What is Annuity?
It is an annual income received by the employee from his employer. It may be paid by the employer as voluntarily or on account of contractual agreement. It is not taxable until the right to receive the same arises. Under section 56, Income Tax Act, 1961 other annuities come under a will or granted by a life insurance company or accruing as a result of contract which comes as income under from other sources.

5. What is Gratuity?
It is salary received by an individual paid by the employee at the time of his retirement or by his legal heir in the case of death of the employee.

6. What is Allowance?
It is the amount received by an individual paid by his/her employer in addition to salary. Under section 15 of the Income Tax Act, 1961 these allowance are taxable excluding few conditions where they are entitled of deduction/ exemptions.

Under Income Tax Act following types of allowance are defined:

1. House Rent Allowance:
   Under sections 10(13A) of Income Tax Act, 1961 allowance is defined as an amount received by an employee paid by his/ her employer as a rent of his/her house. It is a taxable income. There is no exemption in tax if he is living in his own house or house for which he is not paying rent. There are following amount which are exempt from tax:
   • Actual house rent paid by that individual
   • Rent paid for the accommodation over 10% of the salary
   • 50% of the salary if house is placed at Delhi, Mumbai, Kolkata, Chennai or 40% of the salary in it is placed in any other city.
2. Entertainment Allowance:
   It is the amount paid by employer for availing entertainment services. Under section 16(ii) of Income Tax Act, 1961 it is entitled to deduction in tax from is salary. But in this case deduction is given to his gross salary which also includes entertainment allowance. Deduction in tax against this allowance can be divided into two parts:
   In case of Government employee entitled to minimum deduction of:
   • Entertainment allowance received
   • 20% of basic salary excluding any other allowance
   • Rs. 5000
   In case of other employee entitled to minimum deduction of
   • Entertainment allowance received
   • 20% of basic salary excluding any other allowance
   • Rs. 7500
   • Entertainment allowance received during 1954-1955
3. Other Special Allowances
   • Children Education Allowance
   • Tribal Area Allowance
   • Hostel Expenditure Allowance
   • Remote Area Allowance
   • Compensatory Field Area Allowance
   • Counter Insurgency Allowance
   • Border Area Allowance
   • Hilly Area Allowance

Following allowances are exempt from income tax:
Allowance given to a citizen of India, who is a government employee, for rendering services outside India

• Allowances given to Judges of High Courts
• Allowance given Judges of Supreme Court
• Allowances received by an employee of UNO

7. What is Perquisite?
Under section 17(2) of Income Tax Act, 1961 perquisite is defined as:

• Amount paid for the rent-free accommodation provided to the assessee by his employer
• Any concession in the matter of rent respecting any accommodation provided to the assessee by his employer
• Any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:
  1. By a company to an employee, who is a director thereof
  2. By a company to an employee being a person who has a substantial interest in the company
  3. By any employer to an employee whose income under the head 'Salaries' exceeds Rs.24000 excluding the value of non monetary benefits or amenities
  4. Any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee
  5. Any sum payable by the employer whether directly or through a fund, other than a recognised provident fund or EPF, to effect an assurance on the life of the assessee or to effect a contract for an annuity

There are following perquisites which are tax free:

• Medical facility
• Medical reimbursement
• Refreshments
• Subsidized Lunch/ Dinner provided by employer
• Facilities For Recreation
• Telephone Bills
• Products at concessional rate to employee sold by his/ her employer
• Insurance premium paid by employer
• Loans to employees by given by employer
• Transportation
• Training
• House without rent
• Residence Facility to member of Parliament, judges of High Court/ Supreme Court
• Conveyance to member of Parliament, judges of High Court/ Supreme Court
• Contribution of employers to employee's pension, annuity schemes and group insurance

Tax benefits on Housing Loan

Loans are very important for all of us to realize some of our major dreams in time. We all look forward different kinds of benefits from loans we take. Of course it may be less interest rate, low processing fee, easy documentation, time taken to release the loan and finally, the very important thing we expect from a loan is Tax Benefit.

Tax benefits from loans are in different types and even it depends on the nature of loan taken. We take loan for personal use or to fund for our children’s education or construction of our house. We don’t get any tax benefit from the loan taken for our personal use. But of course we can claim tax exemption on the loan taken for education and house construction. As I have posted an article on Tax Benefits on Educational Loan, now I am giving you the complete details of tax benefits which can be availed on Home loan or the loan taken to construct a house.

Nowadays, it is very difficult to fund the entire amount for your house construction, because of skyrocketing real estate prices and construction costs. Therefore, we all take home loans from different banks at different rate of interest. It is again very difficult to repay the loan, but if you do your financial planning and tax planning properly, you can save a huge amount legally by considering the prevailing tax laws.

According to the income tax laws applicable, the interest paid on the capital borrowed for the acquisition or construction of house property is eligible for deduction up to the maximum limit of Rs 150000 per annum. You also get a 20% rebate on repayment of principal of the housing loan per annum. While this was earlier subject to a maximum of Rs 10,000, it is now Rs 1,00,000 and people can avail this benefit under section 80c of the income tax Act.

Points to be considered:
You should be residing in the home for which the loan is taken. If you are residing in a city but buying property in your home town to prepare for retirement, this will not be applicable. The property has to be acquired or constructed before April 1, 2003. The money should have been borrowed to construct or acquire property on or after April 1, 1999. If it was prior to this date, the deduction is only valid up to Rs 30,000.

You may find it more convenient and cheaper to finance the property out of your own resources. But do remember, you would be losing the tax shelter on account of the deduction available as well as the tax rebate. You can claim a rebate for housing loan only on producing the interest certificate from the lending institution. Taking a loan from a family member or a friend, who may get you a loan at cheaper rate of interest, or no interest at all, but will not qualify for such deductions. Only loans taken and interest paid thereon, to specified financial institutions which offer housing loans, qualify for deduction under the Income Tax Act, 1961.

If the loan is jointly taken by you and your spouse, you both are entitled to tax benefits. Since both will be claiming the deductions and rebate, you will have to approach the financial institution and ask for a certificate. This certificate will state how much of the loan is your responsibility and how much you are contributing towards the repayment. Your tax deduction and rebate can be calculated based on this amount.

FAQs on Income Tax II - Payment & Return filing

1. How and where can I pay income tax?
Tax can be paid by way of cash, cheque or draft in any authorised national banks, in the prescribed challan. The challan can be obtained from Income tax Offices.

2. What do you mean by Income Tax Return filing?
Income Tax Return is a statutory return to be filed by assessee with Income Tax Department stating the total income earned & tax paid/payable by him during the previous financial year.

3. Is it compulsory to file a return of income when there is loss?
If a person has sustained a loss in the previous year and wishes to carry forward the loss to the subsequent year he should furnish a return of loss in the prescribed form before the due date.

4. Do I have to pay tax on all the money earned?
No, if you are an individual or HUF, you do not have to pay tax till you reach a specified exemption limit; once you cross that limit tax have to be paid as per following rates, slab wise:

For F.Y. 2008-09

Income	Rate (%)
Up to 150000*	NIL
150000 to 300000	10
300000 to 500000	20
Above 500000	30

* Threshold limit for resident women assessees below 65 years of age and resident individuals of 65 years and above to be further increased to Rs. 1,35,000/- and Rs. 1,95,000/- respectively.
• Plus surcharge @ 10% applicable if total income exceeds Rs. 10,00,000/
• Education Cess @ 2% is payable on tax plus surcharge

However if you are a company or a partnership firm you will have to pay tax on all income earned.

Proposed under Budget 2008, is as follows:

For A.Y. 2009-10 and For F.Y. 2008-09
Income	Rate (%)
Up to 150000	NIL
150001 to 300000	10
300001 to 500000	20
Above 500000	30

Threshold limit for resident women assessees below 65 years of age and resident individuals of 65 years and above to be further increased to Rs. 1,80,000/- and Rs. 2,25,000/- respectively. Surcharge @ 10% applicable if total income exceeds Rs. 10, 00,000/-. Education Cess @ 2% leviable on tax plus surcharge.

5. Do I have to file a return even if my income is lower than the exemption limit? What is 1/7 criterion?
If you are Individual or HUF, then Yes, if you fulfils any one of the following conditions at any time during the previous year:

1. Ownership/lease of a motor vehicle.
2. Occupation of any category or categories of immovable property as may be specified by the board by notification whether by way of ownership or tenancy or otherwise.
3. Incurred expenditure on himself or any other person on travel to a foreign country other than Bangladesh, Bhutan, Maldives, Nepal, Pakistan or Sri Lanka (not being a travel to Saudi Arabia for Hajj or travel to China on pilgrimage to Kailash Mansarovar).
4. Subscription of a cellular telephone (not being a wireless in local loop telephone).
5. Holder of a credit card (not being an add-on card or not being a Kisan credit card, issued by a bank or an institution).
6. Member of a club where entrance fees charged is Rs 25,000 or more.
7. Expenditure of Rs 50,000 or more during the previous year towards consumption of electricity.

However, the government has specified that the above provision is not applicable in the case of a Non-Resident Indian (NRI).

Also if you are at least 65 years of old and not engaged in any business /profession, then you may not file return even when you fulfill conditions 2 or 4 above.

6. There are various returns available on Income Tax Departments site, which one do I need to file?

Class of Assessees	Category	Form
Individuals, HUF, Firms etc. (except companies and charitable assessees)	All cases	Form No. 2D or Saral form
	One by Seven scheme	Form No. 2C
	Business or Profession income	Form No. 2
	Non- business income	Form No.3 or 3D
	Non- business income, No Capital Gain, No agriculture income	3 or 2D or 2E (Naya Saral)
	Non business income and total income less than Rs 2 lakhs	Form No. 2A
Charitable assesses	All cases	Form No 3A
Company except charitable assesses	All cases	Form No 1
Search cases	All cases	Form No 2B

7. What are the due dates for filing returns for various assesses?

Category	Due date
For four categories namely: A. Companies B. All auditable cases C. Working partner of auditable firms, D. Persons covered other than 1/7 scheme,	31st October
In any other case	31st July

8. What is E-filing of return?
The Electronic Furnishing of Return of Income Scheme was introduced in 2004. Under this scheme, eligible assessees can file their returns of income electronically through authorised persons to act as e-return intermediaries on or before the due date.
The intermediaries digitalise the data of such returns and transmit the same electronically to the e-filing server of Income Tax Department under their digital signatures.

9. Who are eligible to file e-return?
Any assessee except an Association of persons or Body of Individual, who has been allotted a permanent account number (PAN) and who is assessed or is assessable to tax in any of the sixty cities, which are presently on Income Tax network is eligible to file his return of income under this scheme.

10. What do you mean by 'belated return'?
If the return is not furnished within the time prescribed or within the time permitted under a notice issued, the person can furnish the return of any previous year at any time before the end of one year from the end of the relevant assessment year, or before the completion of the assessment year.

For e.g. Return is due on October 31, 2008 for the Assessment Year 2008-09. However, for some reason, if the person does not file his return by October 31, 2008, he can file belated return on or before 31st March 2010.

11. What are the consequences of filing belated return?
A penalty of up to Rs 5,000 is required to be paid if the tax man picks up your paper for assessment. In addition, a penal interest @ 1% per month would be charged for default in tax payments.

12. What is the penalty?
WHEN speaking of belated filing of returns, the tax payer is ought to be in either of the following two situations.

• He or she has paid all his taxes but failed to file the returns on the due date for genuine reasons.
• He or she has not only failed to file the returns but also failed to pay his taxes on the due date

In the first case, since the assessee has cleared all his dues to the government, no penalty or interest shall be charged; provided the returns is filed by the end of the assessment year. Thus, in our example, no penalty or interest shall be levied from the assessee if the returns are filed on or before March 31, 2008.

However, if the returns is not filed within this stipulated time period (till March 31, 2008) and the assessee's income is picked up for assessment, the taxman can impose a penal charge of up to Rs 5,000 under Section 271F of the Income-Tax Act in spite of the fact that a belated returns can be filed up to one year from the end of the assessment year or as in our example by March 31, 2009.

However, if the assessee belongs to the second category of people, who have failed to deposit the tax dues with the government before the due date, interest @ 1% per month or part of the month (simple interest) shall be levied on the amount of net tax due from him under section 234A of the Income-Tax Act from the date immediately following the due date till the date of filing of returns. Thus, if the return is filed, say on December 31, 2008, i.e., five months after the due date, the interest shall be levied at the outstanding tax amount @ 1% pm for five months.

Other consequences

• A PERSON filing the returns after the due date, irrespective of the fact whether the tax has been paid or not, will not be allowed to carry forward the losses if any incurred by him during the financial year.
• The losses that cannot be carried forward are the business losses, capital losses and losses arising from the business of owning and maintaining race horses. If the return is filed on the due date, the assessee is allowed to file a revised return if he wants to make any amendments to the original returns so filed.

However, this privilege is not available to a person filing belated returns. In case of refund of tax, the assessee is eligible to receive interest on such refund from the taxman. This interest is paid for the period starting from the date of filing of returns till the date of issue of refund order. Thus, in case of a belated return, the assessee is bound to lose out on interest on refund for the period for which the return is delayed. While tax payers can undoubtedly file belated returns, it is and has always been advisable to file returns within time. So, while you may have missed the bus this time round, make sure you catch up on time from next year.

13. What is Advance Tax?
Advance tax means the advance tax payable in accordance with the provisions of Chapter XVII-C. Tax shall be payable in advance during any financial year in respect of the total income of the assessee which would be chargeable to tax.
Advance tax shall be payable if the tax payable is Rs. 5000 or more.
Advance Tax Obligation (If tax payable exceeds Rs. 5,000)
Due Date of Installment payable on or before Amt. Payable as a % of Tax
For Cos.* For Other Assessees
15th June 15% ¿
15th September 30% 30%
15th December 30% 30%
15th March Balance Balance
*MAT also subject to Advance Tax. Refer Circular No. 13 of 2001, [252 ITR (St) 52]

Advance Tax Obligation (In respect of Fringe Benefit Tax payable)

Advance Tax Obligation (If tax payable exceeds Rs. 5,000)
Due Date of Installment payable on or before	Amt. Payable as a % of Tax
	For Cos.*	For Other Assessees
15th June	15%	¿
15th September	30%	30%
15th December	30%	30%
15th March	Balance	Balance
*MAT also subject to Advance Tax. Refer Circular No. 13 of 2001, [252 ITR (St) 52]

Advance Tax Obligation (In respect of Fringe Benefit Tax payable)
Fringe Benefit Tax payable for quarter ended	Due Date of Installment payable on or before	Amt. Payable as a % of Fringe Benefit Tax payable for the quarter
June	15th July	100%
September	15th October	100%
December	15th January	100%
March	15th March	100%

FAQs on Income Tax I - Basics

1. Who has to pay Income tax?
Any individual, corporate, firm, society or any judicial legal entity having income earned & received in India will be liable to pay Income tax to the Income tax Department of India.

2. Who is an assessee in Income Tax?
Assessee is a person by whom Income tax is payable under Income tax Act, 1961 of India.

3. What is Assessment year in Income Tax?
Let's say your Financial Year is from 1st April-2007 to 31st March-2008, then Assessment year for Income Tax purpose is year ending on 31st March, 2009 (1st April 2008 to 31st March 2009). In this case Financial Year would be called previous year.

4. What is a PAN (permanent account number)?
The permanent account number is allotted by the assessing officer to any person for the purpose of identification. It's a Unique 10 digits number for e.g. KKJMN6994P.

5. Do I have to apply for a permanent account number (PAN)? How do I apply?
If you fall under any of the below mentioned categories, you have to apply for PAN in Form 49A:

• If your total income in the previous year exceeds maximum amount not chargeable to tax.
• If you are carrying on business or profession, whose total sales, turnover or gross receipts, are or is likely to exceed Rs 500,000.
• If you are assessable as charitable trust.

You have to quote your PAN on:

• Income tax return
• Any correspondence with Income Tax Authority
• Challans for payment of direct taxes
• Application for installation of a telephone connection (including a cellular telephone)
• Application for opening a bank account
• Application for opening DMAT account
• Documents pertaining to sale or purchase of a motor vehicle (other than two wheelers) & immovable property valued at Rs 500,000 or more
• Documents pertaining to a time deposit/fixed deposits exceeding Rs 50,000 with a bank
• Documents pertaining to deposits exceeding Rs 50,000 in any account with a Post-Office Savings Bank
• Documents pertaining to a contract of a value exceeding Rs 1 million (Rs 10 lakhs) for sale or purchase of securities (shares, debentures)
• At the time of purchase of Mutual fund units.
• Payment to hotels and restaurants against their bills for an amount exceeding Rs. 25,000 at any one time

However following people may not apply for PAN:

• Who have agricultural income and are not in receipt of any other income chargeable to income tax
• NRIs
• Central Government, State Government and Consular Officers, in transactions where they are the payers.
• Application for allotment of PAN can be submitted in form No. 49A.

6. What are the types of income chargeable to Income tax?
1. Salary Income
2. House Property Income
3. Income from business or profession
4. Income from sale of capital assets
5. Other income

7. What is residential status under Income Tax Act?
In India, as in many other countries, the charge of income tax and the scope of taxable income vary with residential status of the assessee.
There are three categories of taxable entities viz.
(1) Resident and ordinarily resident (ROR)
(2) Resident but not ordinary resident (RNOR)
(3) Non-residents (NR)

The law prescribes two alternative criterions to decide the residential status of an assessee. Both criterions relate to the physical presence of the taxpayer in India in the course of the previous year which would be the twelve months from April 1 to March 31.

A person is said to be "resident" in India in any previous year if he -
(a) Is in India in that year for an aggregate period of 182 days or more; or

(b) having within the four years preceding that year been in India for a period of 365 days or more, is in India in that year for an aggregate period of 60 days or more.

The above provisions are applicable to all individuals irrespective of their nationality. However, as a special concession for Indian citizens and foreign citizens of Indian origin, the period of 60 days referred to in Clause (b) above, will be extended to 182 days in two cases: (i) where an Indian citizen leaves India in any year for employment outside India; and (ii) where an Indian citizen or a foreign citizen of Indian origin (NRI), who is outside India, comes on a visit to India.

In the above context, an individual visiting India several times during the relevant "previous year" should note that judicial authorities in India have held that both the days of entry and exit are counted while calculating the number of days stay in India, irrespective of however short the time spent in India on those two days may be.

A "non-resident" is merely defined as a person who is not a "resident" i.e. one who does not satisfy either of the two prescribed tests of residence.

An individual, who is defined as Resident in a given financial year is said to be "not ordinarily resident" in any previous year if he has been a non-resident in India 9 out of the 10 preceding previous years or he has during the 7 preceding previous years been in India for a period of, or periods amounting in all to, 729 days or less.

Conditions	ROR	RNOR	NR
In India >= 182 days in FY	Yes	Yes	No
NR in India in 9 out of 10 preceding FYs	No	Yes	NA
In India for <=729 days in preceding 7 FYs	No	Yes	NA
In India >= 60 days in FY and >= 365 days in preceding 4 FYs	NA	NA	No
(FY = Current Financial Year)

* Threshold limit for resident women assessees below 65 years of age and resident individuals of 65 years and above to be further increased to Rs. 1,35,000/- and Rs. 1,85,000/- respectively.
• Plus surcharge @ 10% applicable if total income exceeds Rs. 10,00,000/
• Education Cess @ 2% is payable on tax plus surcharge

However if you are a company or a partnership firm you will have to pay tax on all income earned. Till 31st March 2003, "not ordinarily resident" was defined as a person who has not been resident in India in 9 out of 10 preceding previous years or he has not during the 7 preceding previous years been in India for a period of, or periods amounting in all to, 730 days or more.

8. Is it compulsory to maintain books of accounts?
Yes, IF you are carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other notified profession. And Yes, IF you are carrying on business or profession (other than professions mentioned earlier) and IF the income from business or profession exceeds Rs.1,20,000/- or the total sales, turnover or gross receipts in the business or profession exceeds Rs. 10 lakhs in any one of the three years immediately preceding the previous year.

9. Is it compulsory to get the books audited?
(i) Every person carrying on business shall get his accounts audited if the total sales, turnover or gross receipts in business exceed Rs. 40 lakhs in the previous year.

(ii) Every person carrying on profession shall get his accounts audited if his gross receipts exceed Rs. 10 lakhs in the previous year