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Background for Section 80C of the Income Tax Act (India) / What are eligible investments for Section 80C:

Section 80C replaced the existing Section 88 with more or less the same investment mix available in Section 88.  The new section 80C has become effective w.e.f. 1st April, 2006.  Even the section 80CCC on pension scheme contributions was merged with the above 80C.  However, this new section has allowed a major change in the method of providing the tax benefit.  Section 80C of the Income Tax Act allows certain investments and expenditure to be tax-exempt.  One must plan investments well and spread it out across the various instruments specified under this section to avail maximum tax benefit. Unlike Section 88, there are no sub-limits and is irrespective of how much you earn and under which tax bracket you fall.

The total limit under this section is Rs 1 lakh. Included under this heading are many small savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums and investment in specified government infrastructure bonds are also eligible for deduction under Section 80C

1. Short title and commencement:- This scheme may be called the Public Provident Fund Scheme, 1968.  It shall come into force on Ist July, 1968.

2. Definitions:- In this scheme, unless the context otherwise requires:-

(b) `Accounts Office' means an office or branch of the State Bank of India, may subsidiary bank of the State Bank of India (excluding a pay office, a sub pay office or any other office managed by single officer or clerk) and any other office authorized by the Central Government to receive subscriptions under the scheme;

CASE LAW DETAILS

CASE LAW DETAILS

Decided by: HIGH COURT OF KARNATAKA, In The case of: CIT v. Monarch Citadel Pvt. Ltd.,  Appeal No.: ITA No. 1183 of 2006, Decided on: January 13, 2010

CASE LAW DETAILS

Decided by: HIGH COURT OF BOMBAY,  In The case of: Bhavesh Developers  v. Assessing Officer,  Appeal No.: Writ Petition No. 2508 0f 2009,  Decided on: January 12, 2010

Decided by: HIGH COURT OF KARNATAKA,  In The case of: CIT v. Aslam Ulla Khan , Appeal No.: ITA Nos. 448 to 451 of 2004, Decided on: January 4, 2010

RELEVANT PARAGRAPH

8. The appeal had been admitted to examine the following question of law :

(1) Whether, the Tribunal was correct in holding that the Assessing officer had to record his reasons and based on those reasons form his opinion that the income has escaped assessment by relying on two judgments of this Hon'ble Court in 133 JTJ? 199 and 155 ITR 748 before reopening assessments when Section 147 has been amended by Direct Tax Laws Amendment Act, 1989, w.e.f. from 1.4.1989 by substituting the words "for reasons to be recorded by him in writing is of the opinion* with the words "has reason to believe".

(2) Whether the Assessing officer was correct in taking into account the declaration filed by the assessee under the VDIS Sdvsrrte and had reasons to believe that the income chargeable to tax had escaped assessment and correctly brought to tax the said amount declared under the scheme, by re-opening assessment.

(3) Whether the Tribunal was correct in holding that any declaration which has been filed under the VDIS scheme cannot be used as admissible evidence for the purpose of this Act, especially when the scheme has been held to be not applicable.

9. We have beard Sri M V Sheshachala, learned standing counsel for the revenue-appellants and Sri A Shankar, learned counsel for the assessee-respondent

10. Appearing for the appellant-revenue, Sri Seshachala, learned standing counsel for the revenue, submits that the tribunal has committed an error in interfering with the matter and setting aside a well considered order passed by the assessing authority and affirmed by the first appellate authority. Learned counsel would submit that reopening was well within the scope ofSection 147 of the Act; that the declaration filed by the assessee definitely can constitute information within the meaning of Section 147 of the Act and in support of this submission, reliance is placed on a Division Bench decision of the Punjab & Haiyana High Court in the case of SAT NARAIM vs COMMISSIONER OF INCOME TAX ((2009) 183 TAXMANN 40].

11. While the question as to whether a declaration filed by the assessee under the voluntary disclosure scheme can constitute information for the purpose of reopening underSection 147 may be a debatable point and either way may be the position, it is not open for this court to consider the matter now, as thetribunal has recorded a finding that there was no application of mind on the part of the assessing authority for reopening, particularly, if on perusing the actual reasoning as recorded in the proposition for reopening, which we have already extracted above, we are in full agreement with this view that theassessing authority cannot act on the dictates of the commissioner, who had directed him to reopen the concluded assessment for the year 1991-92, that, in our view also, does not constitute an information within the scope of Section 147 of the Act.

12. Apart from this, Sri Shankor, learned counsel for the respondent-assessee also points out that the sanction - itself was defective, for the reason that the sanction was from the commissioner of income tax, whereas the authorized authority for sanction was only the joint commissioner, particularly, as the commissioner will have to act as the appellate authority against the orders passed by theassessing authority.

13. This submission is only reiterating the circumstance that the reopening was bad in law and therefore we cannot accept this submission made on behalf of the appellant-revenue.

14. In the result, this appeal is dismissed, answering the first substantial question of law in the negative against the appellant-revenue and leaving open the other two questions, as they become virtually academic and accordingly they are not answered

Both MCX-SX and ICAI recognise the importance of developing skill-sets for market intermediaries and sensitising professionals regarding benefits of thefinancial markets . As part of the agreement, MCX-SX and ICAI will jointly conduct seminars, certification programmes, various events, training and research programmes onfinancial markets and corporate governance . This agreement is also in line with the MCX-SX's continual efforts for enabling financial inclusion via financial literacy since its inception. MCX-SX has undertaken various innovative programmes for expanding thefinancial markets. It is the first stock exchange in India to:

• Launch websites in 11 regional languages which had over 2.25 lakh visitors in the first year

• Jointly developed financial literacy programs with Doordarshan

• Entered into several agreements with trade bodies for reaching out to SME, Exporters and Importers across India. (These include FIEO, Set up by Minister of Commerce Govt of India, CII, Assocham, TIE, etc)

• Release 1st Handbook on currency futures

• Provide price updates on currency futures via SMS

• Conduct on an average one education and awareness programme per working day

On this occasion Mr. Uttam Prakash Agarwal, President, ICAI said, "ICAI recognises and appreciates the ongoing efforts by MCX-SX for financial literacy and development of thefinancial markets in India . They propagate the need of high standards of quality and transparency in business operations. As India's premier accounting body, ICAI has also been a harbinger of international best practices andcorporate governance in India . This agreement marks the beginning of a unique programme to educate and train professionals from both corporate and financial industry for developing skill-sets to match global standards."

Commenting on the agreement, Mr. U Venkataraman, Executive Director, MCX -SX, said, "We are happy to partner with ICAI and compliment their vision. Financial education and awareness will be an integral part of the market development strategy of MCX StockExchange that will enable it to support greater financial inclusion and superior standards in compliance and investor protection. This partnership with ICAI marks MCX-SX's constant endeavour to deepen our markets and creating a level-playing field for India's corporate sector and SMEs."

Uttam Prakash Agarwal, president, ICAI told , "We have to reach to a conclusion in case of the Satyam auditors who have been prima-facie found guilty. Now that Talluri has been given bail, we will start our proceedings against him".

ICAI has said that it would give auditors of PricewaterhouseCoop ers in the Satyam scam a chance to present their side before passing any order against them.

The institute also interrogated the two auditors in the jail. Talluri and Gopalakrishnan during the interrogation, told ICAI that they relied on the documents provided by the management and followed theaccounting procedures prescribed by the institute.

According to the ICAI Act, members found guilty of professional misconduct could be barred from practice or fined up to Rs 500,000.

Times and circumstances constantly change for all of us. However, it is how we deal with this constant change is what defines us. I believe that we all have specific missions in life and we have to move on once they are fulfilled. Life is like a relay race wherein we run our part to the best of our ability and then pass on the baton to the next runner. This is true for all of us at all stages in life, be it personal or professional. For me, the time for change has come with the annual change of guard at the Institute. This would be my last message as President of this august and illustrious Institution and I take this opportunity to share with you the passion and zeal that epitomised the Council Year 2009-10.

Many banks are offering lucrative schemes to card holders in order to pare down their credit card exposure following a sharp increase in bad assets linked to them. Almost all major banks, including ICICI Bank and Citibank, are offering similar schemes but don't want to publicise them, which could increase the risk of more card users defaulting on regular obligations and opting for these easier settlement options.

"There are various structured payment plans that we've been offering. These limited schemes are worked out in consultation with the customer as an alternative repayment plan," said a senior ICICI Bank official, who did not wish to be named. A mail sent to the bank, however, remained unanswered till the time of filing this story. The scheme varies from bank to bank.

 So, if you have an outstanding loan of around Rs 2 lakh and are paying an interest as high as 18%, you can convert this into a regular loan, spread over a period of three years, where your interest rate may be as low as 12%. "We have a retentionoriented, assistance-based collections process, and if there is a genuine inability to pay, we work closely with customers to offer repayment solutions based on his or her cash-flows," said business manager cards, Citibank, Sandeep Bhalla.

Source: Economic Times By Dheeraj Tiwari Breathing Easy: Banks Offer Card Defaulters Easy Loan To Settle Dues

The results of the Chartered Accountants Professional Education Examination-II (PEE-II), Professional Competence (PCE) and Integrated Professional Competence Examinations (IPCE) were declared recently.

The details of percentage of candidates passed in the above said examinations are given below:

Professional Education Examination-II (PEE-II)
GROUP     No.of candidates appeared     No.of candidates passed    

% of pass
Both Group     3407     43     1.26
Group - I     7025     682     9.71
Group - II     9191     525     5.71

Professional Competence examinations (PCE)
GROUP     No.of candidates appeared     No.of candidates passed    

% of pass
Both Group     37661     5810     15.42
Group - I     46955     12053     25.66
Group - II     58180     15275     26.25

Integrated Professional Competence Examinations (IPCE)
GROUP     No.of candidates appeared     No.of candidates passed    

The move comes in the backdrop of the poor response from private companies and banks in financing projects, especially those in sectors like highways and urban transport and infrastructure.

"The objective is to identify infrastructure opportunities from the perspective of a PE firm and then set out to attract investments from them," an official explained. While the finance ministry and the Planning Commission have already begun working on a preliminary set of guidelines for private equity investors, it is also planning to appoint a consultant to finalise the norms.

The fresh guidelines for PE investors, which will be unveiled later this year, will cover all major infrastructure sectors, including electricity, telecommunications, roads and bridges, railways , ports, airports, irrigation, water supply and gas distribution. This would be the first such effort by the government to come out with comprehensive guidelines to attract PE firms.

Source: Economic Times PE-friendly norms soon for investment in core sector