Commonly used Tax Glossary
Posted by CA Sandeep Kanoi
To understand the subject of taxation very first of all we all have to understood the basic concepts relating to taxation just like we have to go through for driving rules before we learn to drive a Car or many times it happens we know the each and every concepts but still we lack somewhere in understanding the provision as the definitions and meaning of small concepts play an important role so here I have done a small attempt to clarify the same:-
- Tax: – In simple terms I would say Tax is a compulsory payment made by people to the government.
- Assessee: – Assessee means a person by whom any tax OR any other sum of money (i.e., penalty or interest) is payable under the Act.
- Previous Year: – The year in which Income is earned is known as 'Previous Year'. A Previous year can be of a single day.
- Assessment Year: -The year in which Income which was earned is taxed is known as 'Assessment Year'. Assessment Year is always of 12 months. The year plays role of both 'Previous year' and 'Assessment Year'.
E.g.:- The Financial Year 2014-15 is the Assessment Year for the financial year 2013-14,at the same time it is an Previous Year for the financial year 2015-16.
- Gross Total Income: – Income of a person is computed under the heads of Salaries, Income from house property, Profits and gains of business or profession, Capital gains and Income from other sources. The aggregate income under these five heads is termed as 'Gross Total Income'.
- Total Income: – Total income of an Assessee is gross total income as reduced by amount deductible under various sections.
- Exemption: – A deduction allowed by law to reduce the amount of income that would otherwise be taxed. An exemption is based on a status or circumstance rather than economic standing.
- Perquisites: – The term "perquisites" is defined as a gain or profit incidentally made from employment in addition to regular salary or wages, especially one of a kind expected or promised. Thus, the phrase "perquisites" signifies some benefit in addition to the amount that may be legally due by way of contract for services rendered.
- Allowance: – Allowance is generally defined as fixed sum of money or other incentives given regularly in addition to salary for the purpose of meeting some particular requirement connected with the services rendered by the employee or as compensation for unusual conditions of that service. It is fixed, pre-determined and given irrespective of actual expenditure.
- Income From Salary: – Income under the head 'salary' comprises of remuneration in any form (including perquisites) received by an employee from employer. Thus, there should be contractual employer-employee relationship. The contract may be express, oral or implied. Salary is chargeable on due or receipt basis. Arrears of salary paid or allowed are includible if not charged to income tax for any earlier previous year. 'Salary' includes wages, dearness allowance, Bonus. Gratuity, annuity or pension, advance of salary, Fees / Commissions perquisites/ profits received from employer in addition to salary, Leave encashment while in service, Employer's contribution to provident fund in excess of 12% of salary of employee, profit in lieu of salary.
- Income From House Property: – The income from Houses, Building, Bungalows, God owns etc. is to be computed and assessed to tax under the head "Income From House Property". The income under this head is not based upon the actual income from the Property but upon Notional Income or the Annual Value of the Building.
- Income From Business & Profession: – "Business" simply means any economic activity carried on for earning profits and Profession refers to those activities where the livelihood is earned by the persons through their intellectual or manual skill. So simply we can say, Income earned from business and profession is taxed under the head 'Income From Business & Profession'
- Income From Capital Gain: – 'Capital gains' means any profit or gains arising from transfer of a capital asset. If any Capital Asset is sold or transferred, the profits arising out of such sale are taxable as capital gains under the head 'Income From Capital Gains' in the year in which the transfer takes place.
- Income From Other Sources: -The Income which is not charged under any other head of Income is chargeable under the head 'Income From Other Sources'. So this head of income is also called as 'Residuary Head'
As aforesaid elaborated Major Heads of Income Tax, in nutshell easier to understand and interpret said heads.
As the was the first article written by me, it was wonderful experience for me. I hope the same will be helpful to you and the same would inspire me to write another articles.
(Gopal Santosh Darak-CA Final Student -Mail Id:-gdarak94@gmail.com- Mobile No. +91 84211 24474
CS Kiran Mukadam COMPARISON BETWEEN SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015 And SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 1992 SN Particulars SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2015 SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 1992 1 Compliance officer "compliance officer" means a) any senior officer, designated so and reporting to the board of directors […]
PFA
From a plain reading of this provision it is evident that definitive/final anti-dumping duty can be collected only for a period of five years from the date of its imposition. Generally by virtue of sub-section (2) of section 9A of the Customs tariff Act, 1975, the anti-dumping duty levied in pursuance of final findings of the Directorate General of Anti-Dumping and Allied Duties (DGAD)
Collection of anti-dumping duty beyond validity period
Circular No. 05/2015-Customs
F.No.354/104/2014-TRU
Dated- 28th January, 2015
Subject: Collection of anti-dumping duty beyond the validity period – Regarding.
I am directed to refer to the Board's Circular No.28/2011-Customs, dated 8th July 2011 on the above subject and to state as under.
- Circular No.28/2011-Customs, dated 8th July 2011 was issued in the context of a representation received in March, 2011 that anti-dumping duty was being demanded and levied under notification No.100/2005-Customs dated 29th November, 2005 by various Customs authorities on Acrylonitrile Butadiene at the time of its clearance, despite the fact that Directorate General of Anti Dumping and Allied Duties (DGAD) had not initiated sunset review in the matter of levy of anti dumping duty on Acrylonitrile Butadiene, before the expiry of the said notification on 8th June, 2010. It was also represented that in the absence of any initiation of a sunset review, the anti-dumping duty lapses at the expiry of 5 years from the date of its initial imposition.
3. Since in the said case, the DGAD had not initiated any sunset review, the levy under notification (No.100/2005-Customs) could not have been extended (for one year) in terms of the 2nd Proviso to Section 9A (5) of the Customs Tariff Act, which reads as under:
"Provided further that where a review initiated before the expiry of the aforesaid period of five years has not come to conclusion before such expiry, the anti-dumping duty may continue to remain in force pending the outcome of such a review for a further period not exceeding one year.
4. However, reportedly field formations were still collecting anti-dumping duty. It was in this context that the Circular No.28/2011- Customs dated 8th July 2011 was issued so as to clarify that in such cases, definitive/final anti-dumping duty can be collected only for a period of five years from the date of its imposition.
- In view of the above, Para 3 of the Circular No.28/2011-Customs, dated 8th July 2011 is substituted as under:
"3. From a plain reading of this provision it is evident that definitive/final anti-dumping duty can be collected only for a period of five years from the date of its imposition. Generally by virtue of sub-section (2) of section 9A of the Customs tariff Act, 1975, the anti-dumping duty levied in pursuance of final findings of the Directorate General of Anti-Dumping and Allied Duties (DGAD) is effective for a period of five years from the date of imposition of provisional duty except in cases where the DGAD initiates a review before expiry of such five year period. In cases where the DGAD has not initiated any sunset review before the expiry of aforesaid five years, no anti-dumping duty can be collected beyond the period of five years from the date of its imposition.".
(Malay Samir)
Technical Officer (TRU)
Section 147 is about liability of Principal and Agent. A Customs Broker is per-se not an agent of the importer or exporter. Section 147 will be applicable to a Customs Broker if the Customs Broker is expressly or impliedly authorized by the owner, importer or exporter of any goods to be his agent.
A Customs Broker is per-se not an agent of importer or exporter
OFFICE OF THE COMMISSIONER OF CUSTOMS NS-I, III & V
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA-SHEVA
MAHARASHTRA-400707
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA-SHEVA
MAHARASHTRA-400707
Public Notice No. 08/2015, Dated: January 22, 2015
SUB: Public Notice No 23/2013 DT. 13.06.2013 Amendment in section 146 & 147 of the Customs Act, 1962-reg.
Attention of all is invited to the Public Notice No. 23/2013 dated 13.06.2013. The last sentence in para 3 of the said public notice reads as below:
"As such, the Customs Brokers (CHAs) are now equally liable for any act or omission when the Customs Broker (CHA) is expressly or impliedly authorized by the owner, importer or exporter of any goods to be his customs Broker(CHA) in respect of such goods for all or any purposes of the Act."
2. Section 147 is about liability of Principal and Agent. A Customs Broker is per-se not an agent of the importer or exporter. Section 147 will be applicable to a Customs Broker if the Customs Broker is expressly or impliedly authorized by the owner, importer or exporter of any goods to be his agent.
3. In view of above, in Para 3 of Public Notice No. 23/2013 dated 13.06.2013, the words and phrases "his Customs Broker (CHA)", is substituted by "his agent".
4. The Public Notice No. 23/2013 dated 13.06.13 stands amended to the above extent.
F.No.S/22-Gen-44/2013-14 AM(I)
Sd/- 22.01.2015
(SEEMA JERE BISHT)
COMMISSIONER OF CUSTOMS,
NS-I, III & V, JNCH
(SEEMA JERE BISHT)
COMMISSIONER OF CUSTOMS,
NS-I, III & V, JNCH
Following documents are required to be submitted by the first time importers, namely:- i) Copy of VAT/sales Tax Registration Certificate. ii) Certificate from the Bank with whom the Bank account is being maintained by the importer certifying the signatures, name and address of the importer
Documents to be submitted by first time importers
OFFICE OF THE COMMISSIONER OF CUSTOMS (IMPORT) NSI-I, III &V
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA
DIST. RAIGAD, POST : URAN, MAHARASHTRA-400 707.
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA
DIST. RAIGAD, POST : URAN, MAHARASHTRA-400 707.
F. NO. S/22-GEN-52/2014-15 AM (I) NS-I Date: 21/01/2015
PUBLIC NOTICE No. 06/2015
Sub: Documents to be submitted by the first time importers through JNCH –reg
Ref: Public Notice No. 38/2009 dtd 19.05.2009 & P.N No. 59/2009 dtd 04.09.2009.
The Public Notice No. 38/2009 dtd 19.06.2009 & 59/2009 dtd 04.09.2009 of erstwhile JNCH (Import) which is now divided into NS-I, III & V inter-alia, envisages that the following documents are required to be submitted by the first time importers, namely:-
i) Copy of VAT/sales Tax Registration Certificate.
ii) Certificate from the Bank with whom the Bank account is being maintained by the importer certifying the signatures, name and address of the importer.
iii) Proof of payment/ remittance through the importers account.
iv) Balance sheet of the previous year.
v) Copy of the last Income Tax Return/VAT or Sales Tax Return filed.
- The Chief Commissioners of Customs, Mumbai, Zone-I,II,&III have agreed to the proposal of BCHAA in the Open House Meeting held on 04.12.2014, of accepting the verification procedure at one Zone of Mumbai Customs in remaining two Zones, subject to random verification wherever necessary.
- Hence, it is notified that if an importer is registered in any one Zone in Mumbai, then fresh registration should not be insisted upon in other two Zones of Mumbai Customs except for random verification wherever necessary. The names of the first time importers, whose antecedents have been verified in one Zone shall be updated on weekly basis on the official website of that Zone. Such importers, whose names are appearing on the website of any Zone shall not be required to follow the procedure of submission of relevant documents again; in case of first time imports in any other Zone in Mumbai.
- The Public Notice No. 59/2009 dtd 04.09.2009 stands amended to above extent in order to make the same applicable to first time importer of all goods.
Sd/-21.01.2015
(SEEMA JERE BISHT)
COMMISSIONER OF CUSTOMS (NS-I, III &V).
(SEEMA JERE BISHT)
COMMISSIONER OF CUSTOMS (NS-I, III &V).
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Documents to be submitted by first time importers Following documents are required to be submitted by the first time importers, namely:- i) Copy of VAT/sales Tax Registration Certificate. ii) Certificate fro... | |||||||
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