KNOW WEALTH TAX…..

Wealth tax may something new for many of you, but it can’t be ignored for this reason.

The wealth- tax–act says “there shall be charged for every assessment year commencing on and from the 1st day of April, 1993, wealth-tax in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company, at the rate of one per cent of the amount by which the net wealth exceeds fifteen lakh rupees:]

^64a[Provided that in the case of every assessment year commencing on and from the 1st day of April, 2010, the provisions of this section shall have effect as if for the words "fifteen lakh rupees", the words "thirty lakh rupees" had been substituted.]”

So wealth tax is 1% of the value of assets exceeding 30 lakhs.

The sole purpose of levying this tax is to target unproductive, non-essential and idle assets.

It shall include gold and silver whether bought or gifted and also if u have bought a house and not rented shall be included for wealth tax of course o/s loan taken to buy the this property shall be deducted from the value of property , and even if you keep cash in your locker at home is liable for wealth tax.

However productive and financial assets  ,such as commercial properties ,bonds etc. are exempt from wealth tax.

Today wealth tax just accounts less than 0.25% of total direct taxes and is minuscule in the total revenue collection. Last year it has contributed rs.866 crore in total revenue collection of rs 1,038,036 crore.

Unlike the income tax which is levied on earning just once, it is payable every year for the same assets.

Of course there is a stiff penalty for evading wealth tax , incorrect declaration of wealth can invite a fine of up to  500%   of the evaded tax, one can also be jailed for up to 7 years if the due is over rs.1 lakh.

The wealth tax return is to be filled using form BA and the last date for doing so is 31^st july. If assesse is liable for audit, the last date is 30^th sept.  penalty for delay in filling return can be rs 100-200 per day.

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Gift received from mother's sister's son is taxable under section 56

Gift received from mother's sister's son is taxable under section 56

IT : Mother's sister's son is not a relative as per section 56(2)(v) and gift received from him is taxable

The job “actuary” has been rated as 2013’s best job in the United States by Careercast.com. Here is eligibility for this course.

                                                          Eligibility for Actuarial Science

1) Should have completed 18 years of age 

2) Should have attained any one of the following Educational Standard

A) Passed 10+2 (H.S.C) or equivalent with at least 85% in Mathematics  Or Statistics. 

B) Graduate or Post Graduate with Mathematical subjects. For this purpose following subjects constitute mathematical subjects; 

• Mathematics or any of its branches  • Statistics or any of its sub classifications such as Mathematical Statistics and Applied Statistics  • Econometrics  • Computer Sciences  

Any discipline of Engineering Subject in Science such as Physics or its branches. The admission under these groups will, however, be subject to following conditions: 

The total marks secured in the subjects coming under the classification of Mathematical subjects taken together in all the years of the degree course not less than 55%. The content of Mathematical subjects content in all the years of the course taken together is not less than 50% of the total content. This is measured by the ratio which the maximum marks allotted to Mathematical subjects in all the years of the Course bears to the total maximum marks allotted to all subjects included in the examination of the entire course excluding languages.


C) MBA/PGDBA or equivalent in disciplines having mathematical/ statistical content. Each case to be examined on case to case basis.  


D) Fully qualified members of following Professional/Educational specified:  

• The Institute of Chartered Accountants of India (ICAI). • The Institute of Cost and Works Accountant of India (ICWAI). 
• The Insurance Institute of India (III) passing with subjects 81- Mathematical Basis of Insurance and 82-Statistics Full qualification would mean completion of all required examination leading to designation based on such full qualification such as ICA in case of Institute of Chartered Accountant of India. In case of Insurance Institute of India it would however mean AIII plus pass in subjects 81-Mathematical Basis of Life Insurance and/or 82-Statistics. 

E) A student member of following actuarial bodies  

• Institute of Actuaries, UK  • Faculty of Actuaries, UK  • Institute of Actuaries of Australia  

F) A student of following actuarial bodies provided at least one subject  has been passed from these bodies  
• Society of Actuaries, USA  • Casualty Actuarial Society, USA  

3) The medium of Instruction in final stage of examination based on which admission is sought should be English.  

 Source : http://www.trumpandgates.com/index.php/actuarial-science-information/eligibility-requirements 

Speed post is an acceptable mode for service of notice; registered and speed post are same mode of service

Speed post is an acceptable mode for service of notice; registered and speed post are same mode of service

ST: Since object of sending post by registered post is to keep a record, which is also served by sending an article by speed post through same agency, 'Registered Post' and 'Speed Post' are same methods of service and sending order by speed post is valid compliance with section 37C of Central Excise Act, 1944

ICAI can't be deemed to be pursuing commercial activities by taking coaching classes or campus placements for a fee

ICAI can't be deemed to be pursuing commercial activities by taking coaching classes or campus placements for a fee

IT : Exemption under section 10(23C)(iv) can't be denied to ICAI on account of fees received for providing coaching classes and campus placement of its students

HELD

• The petitioner institute has been constituted under the ICAI Act with the object to regulate the profession of Chartered Accountants in India and to ensure that the standards of professional knowledge and skill are met and maintained.

• The activities being undertaken by the petitioner substantially involve imparting education in the field of accountancy in order to ensure that the standards or profession of accountancy are maintained.

• The petitioner institute is the sole body empowered to conduct or approve a course in the field of accountancy. No other person can conduct any course or award any degree or certificate which indicates a level of proficiency or competence in the field of accountancy similar to that as of a chartered accountant.

Interpretation of the 1st proviso to section 2(15)

• The expressions "trade", "commerce" and "business" as occurring in the first proviso to section 2(15) of the Act must be read in the context of the intent and purport of section 2(15) of the Act and cannot be interpreted to mean any activity which is carried on in an organised manner.

• The purpose and the dominant object for which an institution carries on its activities is material to determine whether the same is business or not.

• The purport of the first proviso to section 2(15) of the Act is not to exclude entities which are essentially for charitable purpose but are conducting some activities for a consideration or a fee.

• The object of introducing the first proviso is to exclude organizations which are carrying on regular business from the scope of "charitable purpose".

• The purpose of introducing the proviso to Section 2(15) of the Act can be understood from the Budget Speech of the Finance Minister while introducing the Finance Bill 2008 wherein it was clarified that "However, some entities carrying on regular trade, commerce or business or providing services in relation to any trade, commerce or business and earning incomes have sought to claim that their purposes would also fall under "charitable purpose". Obviously, this was not the intention of Parliament and, hence, I propose to amend the law to exclude the aforesaid cases. Genuine charitable organizations will not in any way be affected."

• The expressions "business", "trade" or "commerce" as used in the first proviso must, thus, be interpreted restrictively and where the dominant object of an organisation is charitable any incidental activity for furtherance of the object would not fall within the expressions " business", "trade" or "commerce".

Coaching activity

• The activity of petitioner in conducting coaching classes is integral to the activity of the petitioner institute in conducting the courses in accountancy.

• The coaching classes being conducted by the petitioner cannot be equated with private coaching classes being conducted by organisations on commercial basis for preparing students to undertake entrance or other examinations in various professional courses.

• The coaching carried on by private organizations are not integral to the courses being conducted by them but for preparing students for examinations being conducted by other institutes and universities.

• In the case of the petitioner institute, the coaching classes are integral to the curriculum of the programme being conducted by the petitioner institute.

• The comparison of the petitioner institute with UPSC (Union Public Service Commission) is also, not apposite.

• Whereas UPSC conducts an examination for the purpose of selection of candidates for employment into service and is required to be consulted by the Governments with regard to various matters as specified in Article 310 of the Constitution of India, the petitioner institute conducts an education programme and provides not only theoretical knowledge but also practical knowledge.

• The object of the study programme or post-qualification courses being conducted by the petitioner institute is to impart knowledge and skill in the field of accountancy and related subjects to students and the same is not similar to the function as performed by UPSC.

• The DGIT(E) erred in proceeding on the basis that the object of the petitioner was limited to conducting examinations for a selection process enabling the successful candidates to be selected as chartered accountants. The impugned order completely ignores the nature of the educational programme being conducted by the petitioner which includes not only designing of the course, imparting of training, providing study material but also instructions by an expert faculty.

• The reasoning of the DGIT(E) that since the petitioner institute charges a uniform fee from all students for providing coaching classes, thus, it cannot be said to be carrying on a charitable activity is also erroneous.

• It is now well settled that an eleemosynary is not an essential element of charitable purpose as defined under the Act.

• It is not necessary that a person should give something for free or at a concessional rate to qualify as being established for a charitable purpose.

• If the object or purpose of an institution is charitable, the fact that the institution collects certain charges does not alter the character of the institution.

• The fact that the petitioner institute charges a uniform fee from all students for coaching would not exclude the petitioner from the ambit of Section 2(15) of the Act unless it is found that the petitioner falls within the scope of the first proviso to Section 2(15) of the Act i.e. the petitioner carries on any trade, business or commerce or any activity of rendering any service in relation to any trade, commerce or business, for a cess or a fee.

• Although, it is not essential that an activity be carried on for profit motive in order to be considered as business, but existence of profit motive would be a vital indicator in determining whether an organisation is carrying on business or not. In the present case, the petitioner has submitted figures to indicate that expenditure on salaries and depreciation exceeds the surplus as generated from holding coaching classes. In addition, the petitioner institute provides study material and other academic support such as facilities of a library without any additional costs.

• There is nothing on record to indicate the assertion of the petitioner that its activities are not fuelled by profit motive is incorrect. Absence of profit motive, though not conclusive, does indicate that the petitioner is not carrying on any business.

• The petitioner institute has been established to perform a function of regulating the profession of Chartered Accountants. The functions performed by the petitioner institute are in the genre of public welfare and not for any private gain or profit and in this view, it cannot be said that the petitioner is involved in carrying on any business, trade or commerce.

• After going through the provisions of the ICAI Act and the Regulations framed therein as well as various activities carried on by the petitioner, we are of the view that the petitioner institute does not carry on any business, trade or commerce.

• The activity of imparting education in the field of accountancy and conducting courses both at pre-qualification as well as post-qualification level are activities in furtherance of the objects for which the petitioner has been constituted.

• Activities of providing coaching classes or undertaking campus placement interviews for a fee are in relation to the main object of the petitioner which as stated earlier cannot be held to be trade, business or commerce.

• Accordingly, even though fees are charged by the petitioner institute for providing coaching classes and for holding interviews with respect to campus placement, the said activities cannot be stated to be rendering service in relation to any trade, commerce or business as such activities are undertaken by the petitioner institute in furtherance of its main object which as held earlier are not trade, commerce or business.

• Assessee(ICAI)'s writ petition allowed and Department directed to allow exemption under section 10(23C)(iv)

study habits

Successful students have good study habits. They apply these habits to all of their classes and assignments:

 1.    Try not to do too much studying at one time   If you try to do too much studying at one time, you will tire and your studying will not be very effective. Space the work you have to do over shorter periods of time. Taking short breaks will restore your mental energy.                                                      2.      Plan specific times for studying Study time is any time you are doing something related to your coursework. It can be completing assigned reading, working on a paper or project, or studying for a test. Schedule specific times throughout the week for your study time.  

 3.       Try to study at the same time each day Studying at the same time each day establishes a routine that becomes a regular part of your life, just like sleeping and eating. When a scheduled study time comes up during the day, you will be mentally prepared to begin studying.                                                       4.      Set specific goals for study times Goals will help you stay focused and monitor your progress. Simply sitting down to study has little value. You must be very clear about what you want to accomplish during your study times.                                                  

     5.      Start studying when planned You may delay starting your studying because you don't like an assignment or think it is too hard. A delay in studying is called "procrastination." If you procrastinate for any reason, you will find it difficult to get everything done when you need to. You may rush to make up the time you wasted getting started, resulting in careless and errors.     

     6.      Work on the assignment you find most difficult first Your most difficult assignment will require the most effort. Start first with your most difficult assignment since this will require your maximum mental energy.  

 7.        Review your notes before beginning an assignment Reviewing your notes can help you make sure you are doing an assignment correctly. Also, your notes may include information that will help you complete an assignment. 

  8.      Tell friends not to call during study times Two study problems can occur if your friends call you during your study times. First, your work is interrupted. It is not that easy to get back to what you were doing. Second, your friends may talk about things that will distract you from what you need to do. Here's a simple idea - turn off your cell phone during your study times.                                                     9.       Review over the weekend Yes, weekend should be fun time. But this is also the time to do some review including consultation with a friend. This will help you be ready to go on.    

get prepared for exam

preparation stages 

  1.     Start your study well in advance.
 2.     Do proper time management ( Frame a time table) 
3.     Give more attention to difficult subject.
 4.     Make habit of preparation of notes for future reference.
 5.     Do revisions in a suitable time intervals. 
6.     Avoid distracted activities and social net working, chating,etc