About skins...

May 12th, 2012

By default, b2evolution blogs are displayed using an evoskin.

You can change the skin used by any blog by editing the blog settings in the admin interface.

You can download additional skins from the skin site. To install them, unzip them in the /blogs/skins directory, then go to General Settings > Skins in the admin interface and click on "Install new".

You can also create your own skins by duplicating, renaming and customizing any existing skin folder from the /blogs/skins directory.

To start customizing a skin, open its "index.main.php" file in an editor and read the comments in there. Note: you can also edit skins in the "Files" tab of the admin interface.

And, of course, read the manual on skins!

Interest Penalty As per Respective Act

June 19th, 2012
Income Tax Return
ParticularsInterest

Penalty
LATE FILING 12% 5000
LATE PAYMENT 12% Nil

=================================================== ===================================================

VAT
Particulars
Interest

Penalty
LATE FILING

5000 per return
LATE PAYMENT
15%

========================== IN MVAT RULES 88. Rates of interest.- (1) The rates of interest for the purposes of sub-sections (1), (2) and (3) of section 30 shall be one and a quarter per cent. of the amount of such tax, for each month or for part thereof, (2) The rate of interest for the purposes of section 52 shall be half percent of the amount of such tax for each month or for part thereof. (3) The rate of interest for the purposes of the sub-section (1) of section 53 shall be half percent of the amount of such refund for each month or for part thereof. 1 [(4) The rate of interest for the purposes of clause (b) of sub-section (6) of section 51 shall be one and a quarter per cent of the amount of excess refund which is to be recovered, for each month or part thereof .] ===================================================
Service Tax
Particulars
Interest

Penalty
LATE FILING

500-20000 per retn
LATE PAYMENT
15% / 18%
200 per day
======================================================= http://www.servicetaxonline.com/content.php?id=31 Notification 14/2011

===================================================

Professional Tax
Particulars
Interest

Penalty
LATE FILING

300 per Retn
LATE PAYMENT
15%

=============================================

TDS
Particulars
Interest

Penalty
LATE FILING


LATE FILING UPTO FY 11 12
Rs. 100/- per day
LATE FILING FROM FY 12 13

Rs.200/- per day
LATE PAYMENT
18%

============= With a view to discourage the practice of delaying the deposit of tax after deduction, it is proposed to increase the rate of interest for non-payment of tax after deduction from the present one per cent to one and one-half per cent for every month or part of month. This amendment is proposed to take effect from 1st July, 2010. ********************************************************** Penalty for late filing or non- filing TDS statement:

New penalty provision has been inserted as section 271H which provides that a deductor shall pay penalty of minimum Rs 10,000 to Rs 1 lakh for not filing the TDS statement within one year from the specified date within which he was supposed to file the statement. This amendment is also effective from 1st July 2012.


Fee U/s 234E for late filing of TDS Statement:

New section 234E has been proposed to be effective from 1st of July 2012, with heading “Levy of Fee in certain case” deductor will be liable to pay by way of fee of Rs 200 per day till the failure to file TDS statement continues, However, the total fee cannot exceed the amount of TDS deductible for which statement was required to be filed. ====================================================
Entry Tax
Particulars
Interest

Penalty
LATE FILING

1000
LATE PAYMENT
15%
Nil
====================================================
Qtrely C Form
Particulars
Interest

Penalty
LATE FILING

50 per day of Default
LATE PAYMENT


====================================================
Luxury Tax
Particulars
Interest

Penalty
LATE FILING

1000
LATE PAYMENT
15%
Nil
====================================================
Tax Audit
Particulars
Interest

Penalty
LATE FILING

Lower of 0.5% of total sale or rs. 150000/-
LATE PAYMENT


==================================================== Penalty u/s 271B for non furnishing of audit report is lower of 0.5% of total sale or rs. 150000/- ======================================================
VAT Audit
Particulars
Interest

Penalty
LATE FILING

0.10% of T/O
LATE PAYMENT


====================================================
ON UPDATION FOLLOWING FORMAT
ParticularsInterest

Penalty
LATE FILING    
LATE FILING UPTO FY 11 12 12% Nil
LATE FILING FROM 12 13 12% Nil
LATE PAYMENT Nil 5000

=================================================

Income Tax Audit Limit

June 19th, 2012

Upto FY 2009 -1 0 : 40 Lakhs

From FY 2010-11 : 60 Lakhs

Basel II (Bank Audit)

June 18th, 2012

Basel II

pillar 1 : Minimum Capital Requiremnet ( credit risk, operational risk,Market Risk)

pillar 2 : Supervisory Review Process

pillar 3 : MArket Discipline

From Wikipedia, the free encyclopedia
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Basel II is the second of the Basel Accords, (now extended and effectively superseded by Basel III), which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.

Basel II, initially published in June 2004, was intended to create an international standard for banking regulators to control how much capital banks need to put aside to guard against the types of financial and operational risks banks (and the whole economy) face. One focus was to maintain sufficient consistency of regulations so that this does not become a source of competitive inequality amongst internationally active banks. Advocates of Basel II believed that such an international standard could help protect the international financial system from the types of problems that might arise should a major bank or a series of banks collapse. In theory, Basel II attempted to accomplish this by setting up risk and capital management requirements designed to ensure that a bank has adequate capital for the risk the bank exposes itself to through its lending and investment practices. Generally speaking, these rules mean that the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability.

Politically, it was difficult to implement Basel II in the regulatory environment prior to 2008, and progress was generally slow until that year's major banking crisis caused mostly by credit default swaps, mortgage-backed security markets and similar derivatives. As Basel III was negotiated, this was top of mind, and accordingly much more stringent standards were contemplated, and quickly adopted in some key countries including the USA.

Contents

Objective

The final version aims at:

  1. Ensuring that capital allocation is more risk sensitive;
  2. Enhance disclosure requirements which will allow market participants to assess the capital adequacy of an institution;
  3. Ensuring that credit risk, operational risk and market risk are quantified based on data and formal techniques;
  4. Attempting to align economic and regulatory capital more closely to reduce the scope for regulatory arbitrage.

While the final accord has largely addressed the regulatory arbitrage issue, there are still areas where regulatory capital requirements will diverge from the economic capital.

Basel II has largely left unchanged the question of how to actually define bank capital, which diverges from accounting equity in important respects. The Basel I definition, as modified up to the present, remains in place.

The accord in operation

Basel II uses a "three pillars" concept – (1) minimum capital requirements (addressing risk), (2) supervisory review and (3) market discipline.

The Basel I accord dealt with only parts of each of these pillars. For example: with respect to the first Basel II pillar, only one risk, credit risk, was dealt with in a simple manner while market risk was an afterthought; operational risk was not dealt with at all.

The first pillar

The first pillar deals with maintenance of regulatory capital calculated for three major components of risk that a bank faces: credit risk, operational risk, and market risk. Other risks are not considered fully quantifiable at this stage.

The credit risk component can be calculated in three different ways of varying degree of sophistication, namely standardized approach, Foundation IRB and Advanced IRB. IRB stands for "Internal Rating-Based Approach".

For operational risk, there are three different approaches - basic indicator approach or BIA, standardized approach or STA, and the internal measurement approach (an advanced form of which is the advanced measurement approach or AMA).

For market risk the preferred approach is VaR (value at risk).

As the Basel 2 recommendations are phased in by the banking industry it will move from standardised requirements to more refined and specific requirements that have been developed for each risk category by each individual bank. The upside for banks that do develop their own bespoke risk measurement systems is that they will be rewarded with potentially lower risk capital requirements. In future there will be closer links between the concepts of economic profit and regulatory capital.

Credit Risk can be calculated by using one of four approaches:

1. Standardised Approach

2. Foundation IRB

3. Advanced IRB Approach

4. General IB2 Restriction

The standardized approach sets out specific risk weights for certain types of credit risk. The standard risk weight categories used under Basel 1 were 0% for government bonds, 20% for exposures to OECD Banks, 50% for first line residential mortgages and 100% weighting on consumer loans and unsecured commercial loans. Basel II introduced a new 150% weighting for borrowers with lower credit ratings. The minimum capital required remained at 8% of risk weighted assets, with Tier 1 capital making up not less than half of this amount.

Banks that decide to adopt the standardised ratings approach must rely on the ratings generated by external agencies. Certain banks used the IRB approach as a result.

The second pillar

The second pillar deals with the regulatory response to the first pillar, giving regulators much improved 'tools' over those available to them under Basel I. It also provides a framework for dealing with all the other risks a bank may face, such as systemic risk, pension risk, concentration risk, strategic risk, reputational risk, liquidity risk and legal risk, which the accord combines under the title of residual risk. It gives banks a power to review their risk management system.

Internal Capital Adequacy Assessment Process (ICAAP) is the result of Pillar II of Basel II accords

The third pillar

This pillar aims to complement the minimum capital requirements and supervisory review process by developing a set of disclosure requirements which will allow the market participants to gauge the capital adequacy of an institution.

Market discipline supplements regulation as sharing of information facilitates assessment of the bank by others including investors, analysts, customers, other banks and rating agencies which leads to good corporate governance. The aim of pillar 3 is to allow market discipline to operate by requiring institutions to disclose details on the scope of application, capital, risk exposures, risk assessment processes and the capital adequacy of the institution. It must be consistent with how the senior management including the board assess and manage the risks of the institution.

When market participants have a sufficient understanding of a bank’s activities and the controls it has in place to manage its exposures, they are better able to distinguish between banking organisations so that they can reward those that manage their risks prudently and penalise those that do not.

These disclosures are required to be made at least twice a year, except qualitative disclosures providing a summary of the general risk management objectives and policies which can be made annually. Institutions are also required to create a formal policy on what will be disclosed, controls around them along with the validation and frequency of these disclosures. In general, the disclosures under Pillar 3 apply to the top consolidated level of the banking group to which the Basel II framework applies.

Stamp Duty : Immovable Property Valuation

June 18th, 2012

Stamp duty department to decide your income tax

 

 

Hard to Belive but it is true with the recent amendment in section 50C and newly inserted section 56(2) (vii) in the income tax act w.e.f 01/10/2009 this is what the effect is and which is going to affect you.

 

As per section 50C in the income tax act the market value (MV) adopted by stamp duty valuation  authority (SDVA) for stamp duty payment is deemed to be the sale consideration for the purpose of capital gain tax for seller if the sale consideration amount mentioned in the agreement value (AV) is less then the said market value (MV) for e.g if AV is Rs. 40 lacs and MV adopted by SDVA is 50 lacs then the sale consideration will be 50 lacs and not the actual RS. 40 lacs so the seller has to pay additional 20% as income tax (capital gain tax) on the RS 10 lacs which he never received

 

Further as per newly inserted section 56(2) (vii) in the income tax act w.e.f 01/10/2009 if the difference between the stamp duty value decided by SDVA and the considered amount mentioned in the agreement exceeds RS. 50,000 then such difference shall be treated as income from other sources for the purchaser of immovable property e.g if AV is RS. 40 lacs and stamp duty value is RS. 50 lacs then this difference of RS 10 lacs shall be considered income from other sources for the purchaser and the purchaser has to pay additional 30% on this 10lacs as income tax.

 

In effect a total of about 50% or more of such additional has to shell out by both seller and purchaser together. In our above mention example on RS 10 lacs additional valued a total of RS 5 lacs is to be paid by both seller and purchaser together as income tax

 

 

 

MV in relation to any property which is the subject matter of the document means the price which such property would have fetched if sold in the open market on the date of execution of such document or the consideration stated in the document whichever is higher however for payment of stamp duty market value/stamp duty value is the value as worked out by stamp valuation authority as per their market value table commonly known as stamp duty ready reckoner or the consideration (agreement value) stated in the agreement whichever is higher.

Thus it has become very important for a person to know all the intricacies of working of stamp duty value because after recent amendments now all purchase or sale of immovable properties will result into litigation with income tax authorities because it will result into higher capital gains tax section 50c for seller & also higher income tax on income from other sources section 56(2) (vii) for the purchaser even in the proposed income tax code similar provisions are incorporated 

Professional Tax Details Newspaper cutting

June 15th, 2012

Please click on the following link to view the file .

 

Professional Tax cutting