HOW TO PAY TAXES ELECTRONICALLY? ITS 24X7
In today’s world you can almost buy anything on net by just a single click. So why not taxes? Yes, you can also pay taxes from anywhere in the world. In India almost all banks are providing online tax payment facility. The intention of this article is to create awareness about net banking facilities provided by various financial institutions. Despite of net banking facility and many other add-on services most of us are still using age old practices. Most of the banks will not accept your tax payment in cash. Banks will accept tax payments if they are paid through instrument or electronically. Cheque/ Online payment has been made mandatory by some of the laws like Income Tax Act, 1961 & Service Tax Act etc. You can also read my articles on my site http://www.mytaxform.info. Further we would discuss how to pay taxes online or electronically? For making online tax payment there is no need to download any software or purchase income tax challan. Any person having a net banking facility can pay taxes electronically. The detailed information can be obtained from the bankers as the procedure varies from bank to bank. The list of banks providing e tax payment facility is available on NSDL-TIN website.
How secure is the transaction?
There is no need to worry. All the transactions made through banks or NSDL-TIN or Income Tax site are encrypted and have Secure Socket Layer (SSL) authentication. Most of the banks in India have Verisign Digital Certification. This assures that this site is secured for financial transactions. Additionally, the security level will differ from bank to bank. If you don’t see the signs as mentioned above, you have to take extra measures for protection. Look for the closed padlock and “s” in https in the URL.
How to pay taxes online?
There are 2 ways by which one can pay taxes. (1) From NSDL-TIN website. (2) From your Bank site. 1) NSDL-TIN website/ Income Tax website: For paying from this site you can log on to http://www.onlineservices.tin.nsdl.com/etaxnews . Alternatively you can also pay through http://www.incometaxindia.gov.in. On Income Tax site there is ‘Pay your Tax Online” button on left hand menu bar. By clicking on this you will be redirected to NSDL-TIN website. The following steps will lead you in paying e-taxes.
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(payment of Income Tax & Corporation Tax) |
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(Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from Corporates or non-corporates) |
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(payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other Direct taxes & Gift tax) |
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(payment of Banking Cash Transaction Tax and Fringe Benefits Tax) |
• Select appropriate challan Form.
• After selecting appropriate challan, fill the details such as PAN, Name & address and then click on ‘Proceed’ button.
• A confirm data page will appear along with message in red letter. “For PAN ‘XXXXX 0000X’ given by you above, the name as per Income Tax Department database is ‘
XXXXXXXXX’.
Tax credit will be effected
to the said PAN nam
e. If the name is correct, then click on “Submit to the bank”
• Login with the user id and password and enter the tax amount along with any intrest or penalty.
• An e-receipt will be generated, save or print it for your record.
This is the complete e-payment process.
2). If you have to pay taxes through your bank directly then following steps should be taken:
• Login with user id and password.
• Click on E-Tax menu and select on appropriate type: Direct Tax, Indirect Tax or State Tax.
• Fill the appropriate challan along with tax am
ount.
• Click on Confirm button.
• An e-receipt will be generated containing CIN (Challan Identification Number).
Stop taking pains by wasting your time in standing long queue in banks and of carrying liquid cash, just clicking will pay your taxes. Pay your Taxes & have sound sleep
TAX TALK: TAX CREDITS & REFUND REGARDING SCIENTIFIC RESEARCH & DEVELOPMENT
In the era of globalization and industrialization every nation wants to be favorite destination for industrialist. To attract the investment it is necessary to more than that of the basic amenities i.e. industrialist need tax concessions.
Now days various countries like Thailand, China India, Canada, England and many more…. have started giving tax concessions &credits for those who to R&D activities in order to save the environment.
In this article I will give you an overview regarding tax credits & refunds on account of scientific research & development in Canada
The scientific research and experimental development (SR&ED) tax incentive program is the single largest federal program supporting business research and development (R&D) in Canada, providing over $3 billion in tax assistance to Canadian businesses in 2006.
Q.What does the Canadian Income Tax provide for research & development?
The SR&ED tax incentives consist of three components: an income tax deduction, an investment tax credit and, in certain circumstances, a tax credit refund. Tax incentives modify the after-tax cost of SR&ED investment, thereby lowering the company’s initial costs and making SR&ED activities more attractive. Each year, over 11,000 companies claim the federal SR&ED tax incentives. It is projected that the tax credit alone will cost the federal government over $2.6 billion in 2007, making tax incentives the most important element of federal assistance for SR&ED.
Q. What the company must do to take the tax advantage?
To take advantage of tax incentives for SR&ED, a company must be able to show that it has invested in one of these types of research. Both current and capital expenditures qualify for federal SR&ED tax incentives. Current expenditures include the salaries of research personnel, general SR&ED costs (telephone and electricity, office equipment and so forth), as well as costs, including maintenance costs, associated with facilities and equipment used for SR&ED purposes. Capital expenditures include assets – facilities and equipment, but not buildings – used for SR&ED purposes.
Q. What are tax deductions allowable on SR&ED?
For the purposes of SR&ED tax incentives, corporations are divided into three categories: Canadian-controlled private corporations (CCPCs) established in Canada and controlled neither by government-owned agencies nor by non-residents; other corporations; and proprietorships, partnerships and trusts.
The SR&ED tax incentives have two components:
An income tax deduction allows immediate expensing of all allowable expenditures (including full expensing of capital in the year of purchase subject to certain rules). The full value of current and capital SR&ED expenditures are added to a pool of unused SR&ED deductions, which can be taken at the discretion of the taxpayer. Unused deductions can be carried forward indefinitely.
An investment tax credit, which is applied to income taxes otherwise payable. Unused credits can be carried forward 20 years and back three years to reduce taxes payable in those years, and are partially or fully refundable for smaller businesses.
A business can generally claim both the income tax deduction and the investment tax credit on the same SR&ED expenditures, although there are some specific differences in the base of expenditures eligible for the two components of the program.
Federal government tax incentives for SR&ED target three types of research: basic research, work performed for the advancement of knowledge and science without any practical application in mind; applied research, carried out for the advancement of science, but with a specific application in mind; and experimental development, aimed at achieving technological progress. In experimental development, the results of basic and applied research are used to create new products or processes, or to improve those that already exist.
Q. What are the tax rates?
There are two rates of investment tax credits (ITCs) for SR&ED in Canada:
The general rate is 20 per cent; and an enhanced rate of 35 per cent of r&d tax credit is provided to small Canadian-controlled private corporations (CCPCs) on their first $2 million of qualified expenditures .
Q. Are their any SR&ED consultants?
Yes, there are many SR&ED consultants in Canada which can give you details about the taxes and help you in getting your tax refunds.
Conclusion
The Auditor General of Canada (2000) and industry both raised concerns about the complexity of the SR&ED tax incentive system. This complexity has come about partly because of the growing number of criteria governing the system’s application. Similarly, many of them find it difficult and time-consuming to thoroughly review the claims. Even though many of us find it difficult & time consuming, the tax credits and refunds will help to save the greenery as well as savings for the companies. It has been rightly said that:
MONEY SAVED IS MONEY EARNED!