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| I. Circular |
| 1. CIRCULAR NO. 2/2010, dated 29-1-2010 |
| The CBDT, has, vide its Circular No. 2/2010 dated 29/01/10 clarified that any installment of advance tax paid in respect of fringe benefit for A.Y. 2010-11 shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11. The assessee can adjust such sum against its advance tax obligation in respect of income for A.Y. 2010-11 or in case of loss to claim such payment as refund as advance tax paid in A.Y. 2010-11. The complete text of the said circular can be downloaded from the link below: http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://law .incometaxindia.gov.in/dittaxmann/circular/Cir2_2010.htm |
| 2. Circular F.NO. 275/192/2009-IT (B), dated 9-2-2010 The CBDT has issued a clarification regarding the deduction under Section 80 CCD for contribution made under pension scheme in the light of Circular No-1 /2010 dated 11th Jan2010 issued on the subject of Deduction of Tax at Source etc. It is clarified that in accordance with the provisions of Section 80CCD, deduction in respect of contribution made by an individual in the previous year to his account under a pension scheme notified, is allowed in computation of his total income (a) in the case of an employee, ten per cent of his salary in the previous year; and (b) in any other case, ten per cent of his gross total income in the previous year. It is further clarified that where the Central Government or any other employer makes any contribution to the account of employee for the pension scheme, the assessee shall also be allowed a deduction in the computation of his total income of the whole of the amount contributed by the Central Govt. or any other employer as does not exceed 10% of his salary in the previous year. Salary for the purpose of above section 80CCD includes dearness allowance if the terms of employment so provide, but excludes all other allowances and perquisites. It is further clarified that aggregate limit of deduction under this section 80CCD along with Sections 80C, 80CCC shall not in any case exceed Rs. One lakh. The complete text of the said circular can be downloaded from the link below: http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://law.i ncometaxindia.gov.in/DitTaxmann/Notifications/IncomeTaxAct/2010/Clarification_2010 _1.htm |
| II. NOTIFICATIONS |
| 1. Notification No. 07/2010 [F.No.178/126/2009-ITA.I], dated 3-2-2010 |
| Section 10(15)(iv)(h) exempts interest on bonds/debentures issued by any public sector company and notified by the Central Government in the Official Gazette. Accordingly, the Central Government has authorized the Indian Railway Finance Corporation (IRFC) to issue tax free secured, redeemable, non-convertible Railway Bonds, interest from which would be exempt under section 10(15)(iv)(h). |
| The complete text of the said notification can be downloaded from the link below: http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=htt p://law.incometaxindia.gov.in/DitTaxmann/Notifications/IncomeTaxAct/2010/Not7_20 10.htm |
| 2. Notification No. 08/2010/F. No.164/03/2008-ITA.I, dated 3-2-2010 Section 2(48) defining zero coupon bonds requires that such bonds should be notified by the Central Government. Accordingly, the Central Government has, vide Notification No. 08/2010 dated 3-2-2010, specified the Bhavishya Nirman Bond ,a 10 year zero coupon bonds of National Bank of Agriculture and Rural Development (NABARD),to be issued on or before 31.3.2011, as zero coupon bonds for the purposes of section 2(48). The complete text of the said notification can be downloaded from the link below: http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=htt p://law.incometaxindia.gov.in/DitTaxmann/Notifications/IncomeTaxAct/2010/Not8_20 10.htm |