Q: Our partnership firm paid a professional fee of Rs 2 lakh to a chartered accountant for auditing our accounts under Section 44AB for the year ended March 31, 2001. While deducting income-tax at source under Section 194J from the said payment, what is the rate of surcharge applicable? As the payment in this case exceeds Rs 1.5 lakh, is the rate of surcharge 12 per cent or 17 per cent?
A: The position regarding the payment of surcharge for the assessment year 2001-02 will be as under:
1: Persons in the income slab of Rs 60,001 to 150,000: Such persons are liable to surcharge at the rate of 12 per cent on the total income-tax payable after rebate under Chapter VIII-A
2: Persons with income above Rs 150,000. They pay surcharge on the total income tax payable after rebate under Chapter VIII-A at the rate of 17 per cent.
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For the assessment year 2002-2003, the surcharge rate has been reduced to 2 per cent for persons with taxable income above Rs 60,000 in a year.
The querist will be required to work out the total amount of tax to be deducted at source for fees to be paid to the CA at the rate of 17 per cent as the income to be disbursed exceeds Rs 150,000.
Q: An additional surcharge at 2 per cent of income-tax has been imposed with effect from February 3, 2001. At what rate will the income-tax including surcharge has to be deducted at source on payment of credit of income in the nature of salaries, interest other than interest on securities, payment to contractors, payment of rent and professional fees, etc, during February 3, 2001 to March 31, 2001. What will be the rate of surcharge applicable in respect of tax deducted at source from April 1, 2001 to May 31, 2001 and June 1, 2001 onwards.
A: For income up to Rs 150,000 the surcharge rate is 12 per cent. For income exceeding Rs 150,000 the rate is 17 per cent. For income earned from April 1, 2001 i.e., for the assessment year 2002-2003, the rate of surcharge is 2 per cent.
Q: I had filed return of my income for the assessment year 1995-96 on March 31, 1997 in circle-7(7), New Delhi. The income declared was (-)Rs 5,860 and the advance tax paid was Rs 23,000. A photocopy of the acknowledgment duly received by the tax department is enclosed. Till now, I have not received any intimation or notice from the I-T department. My assessment for the subsequent years are being handled in Circle-16(3), New Delhi, but they do not have my file for the assessment year 1995-96. Please advise as to what I should do to get the refund of the advance tax payment of Rs 23,000 with interest which is due to me under law.
A: You should contact the office of the chief commissioner of income tax-I at CR Building, IP Estate, New Delhi. His phone numbers are 3317713 and 3318587.
T N Pandey is former chairman, Central Board of Direct Taxes.
(Readers can send their queries to TN Pandey B-107, Sector-15, Noida, UP)