Sunday, August 3, 2008
FUNNY LINES
Letter writing:- "I am well here and hope you are also in the same well
A candidate's job application: "This has reference to your advertisement calling for a ' Typist and an Accountant - Male or Female'.... As I am both(!! )for the past several years and I can handle both with good experience, I am applying for the post.
TO BE CONTINUED TOMORROW.......
“ENJOY TODAY ,WAIT FOR BEAUTIFUL TOMORROW ”
BALD HEADED
BALD HEADED
There was tension in the air as mother stood behind her daughter’s chair in the dinning room. Today’s menu for lunch was jackfruit and curd with Roti. The little girl had her eyes and her plate full. She refused to eat the jackfruit. Mother was equally adamant. She would have to eat it! There was no way that mother was going to let the girl leave the table without eating the much detested vegetable. How else would she learn to eat all kinds of vegetables? The father had promised his wife that he would let her take the forefront when it came to discipline, so he watched in silence. Grandma looked disgusted at the attitude of the mother. The tension was unnerving.The poor child looked at the revolting mass in her plate and felt that if she ate it, she would definitely throw up. Suddenly she said, “Okay, if I eat it, will you grant me a wish?” Father grabbed the opportunity to resolve the situation and said quickly, “Yes honey, whatever you say. Just finish it fast and tell me what you want. I’ll get it for you.” The girl said, “It may not be a ‘thing’. It may be something else.” Father said, “Don’t worry; I’ve given you my promise. Now gobble it up.” The girl put a spoonful of jackfruit into her mouth and made a face as if she was tasting poison. The mother said, “See that you don’t go overboard in asking for a wish. After all, it’s just a bowl of jackfruit. It’s not such a big deal after all!”The girl ate it all up, washed it down with a whole glass of water and then said quickly, “I want to get my head shaved!”Mother’s spoon fell from her hand, with a clatter and grandma almost fainted. “What rubbish! That’s impossible; don’t even dream about it. Silly girl!” said mother. For once Grandma seemed to see eye to eye with her daughter in law but chose to keep silent. Father said, “Look my child, this is quite a ridiculous thing to ask for; be reasonable and I shall surely let you have your way.” But the girl was adamant. “Daddy you promised me. You gave me your word. It was a bargain.” Daddy said, “But darling you shall look obnoxious. Why don’t we buy you a nice Barbie doll instead?” “But I don’t want a doll; I just want to get my head shaved. You have always taught me about the value of honouring your word, what about that now? You are going back on your word. It’s so unfair!” she said in a trembling voice.Looking at the little girl’s tear filled eyes, Daddy’s heart melted, although he could not make out head or tail of why she wanted to do such a weird thing. He said, “She has done her part. If we do not honour our word, she will never learn to honour hers. And how does it matter anyway? Its just hair! It will grow back. What’s the big deal about it?” Mother said, “Who ever heard of a girl getting her head shaved? I will not allow it.” Father stood his ground. “No,” he said. “You had your way; now don’t be unfair to her and stop making a fuss!”Father took the girl to the barber and got the job done. Later in the evening, he took her to the park to play as he did every evening. A short while later a boy came to the park. Father was surprised to note that the boy too had no hair on his head. He did not understand, was this the latest fashion or what? Just then a lady, apparently the bald boy’s mother came up to him and said, “You have quite a daughter. She promised my son that she would get her head shaved, so that the other children at the park would not jeer at him. But I never thought she would actually live up to it.”The man was even more confused now, “But, why did your son have to get his head shaved?” he asked. She tried to smile bravely and said, “Oh no! My son did not have to get his head shaved. You see he has leukaemia. During the chemotherapy he lost all his hair and was refusing to come out of the house. He was afraid that the other children would make fun of him. But your daughter coaxed him on the phone to come today, saying that she too would come with her head shaved to make sure that no body laughed at him!”That is love! Pure and simple! No strings attached! Truly, the most precious things in life can not be made or bought, they are gifted to us by God; we just have to realize how precious they are.
SANJAY TANDON
Warren Buffet's- Golden Rules
CONITNUED FROM YESTARDAY......
SUCCESSFUL INVESTORS
To be successful, investors needed to do just a few
things well. One was investing only in companies that were within their
circle of competence.
GOOD ECONOMIST
“to be a good investor,one also needs to be a good economist.”
MEASURING STICK
“In Williams theory we have to decide what Should be the discount rate? Accoring to William his readers could determine for themselves what would be appropriate. But Buffett’s measuring stick is very straightforward: He uses either the interest rate for long term (meaning ten-year) U.S. bonds, or when interest rates are very low he uses the average cumulative rate of return of the overall stock market.”
TO BE CONTINUED TOMORROW.......
“ENJOY TODAY ,WAIT FOR BEAUTIFUL TOMORROW ”
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SATBIR SINGH
PRESIDENT
JAB WE MET CA
REDEFINING PROFESSIONALISM......
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SATBIR SINGH
PRESIDENT
JAB WE MET CA
REDEFINING PROFESSIONALISM......
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'short-term capital asset'.
Summary:
Different rate of tax , different tax implications permissibility of set off of losses during the previous year, carry forward and set off in future etc. in relation to dealings in shares and securities and other assets have always led to litigation. It is desirable that the law should be clear and specific on such vital issues. A minimum period of holding can be prescribed for different asset to be regarded as short term capital assets to avoid controversies and litigation.
The scope of the article:
This article is basically written in connection with treatment of certain liquid assets as trading assets or capital asset (investment account). Some suggestions have also been placed to make the legal provisions clear and unambiguous. The circulars say about various criteria, and nothing is said in conclusive terms. This lead to state of great confusion and dilemma. The compliance is also not possible in view of large number of assessments being made as per return.
Different circumstances:
The revenue wants to increase revenue collection and tax payer wants to reduce tax liability. Therefore, in same and similar circumstances the revenue and taxpayer will try to choose best possible tax treatment in relation to activity of buying and selling securities.
Reasons for difference of approach:
A tax payer may contend to treat activity as business activity and resultant income as business income to gain tax advantage in the following illustrative situations:
a. An FII not having a Permanent Establishment (PE) in India may like to treat income from buying, holding and selling assets as business activity to gain tax advantage of lower tax in his home country. For example see Fidelity Northstar Fund , In re 288 ITR (2007) 641 (AAR) and several cases referred to therein.
b. An individual who want to take advantage of benefit on investment covered under section 80C as well as tax rebate u/s 88E for security transaction tax (STT) paid on security transactions and not to pay any income tax may prefer to treat activity as business activity instead of investment activity.
c. An assessee who wants to set off past business losses and also to take advantage of tax rebate for STT paid on security transactions may prefer to treat the profit as business profit instead of short term capital gains.
d. An assessee who also want to take advantage of loss arising due to lower valuation of assets at year end may prefer to treat the activity as business activity so as to reduce taxable income due to fall in valuation of assets which can be considered as stock-in-trade with option to value at a price lower than cost.
e. To get benefit of loss suffered in buying and selling securities and other capital assets and set off the same against other incomes.
In the following illustrative situations assessee may prefer to treat the activity as investment activity:
When assessee has other income to avail full benefits available for tax rebate, past losses etc. and has to pay tax which will be lower if income is considered as short term capital gains instead of business income.
The non-existence of situations discussed in earlier para will lead to advantage in case income is considered as short-term capital gain instead of business income.
c. When the assessee do not want to get his accounts audited under section 44AB of the income tax act for any reason ( say lapse of period for filing return) and to obtain and furnish Tax audit report.
The revenue's stand will be opposite:
In above situations the stand of the revenue will be opposite with a view to collect higher tax. As a result if assessee want to claim activity as business the revenue may try to bring it under capital gain and vice versa.
Types of shares in the context: -
In the context of determining character of share as a trading share or a share held as investment the following type of shares are found:
Shares of unlisted companies:
These shares are held by people in management and their associates and are not traded on stock exchange. Therefore, in most of the cases such shares are held as investment. In case of private limited companies there is restriction on transfer of shares and therefore, those shares must generally be regarded as investment. In case of public limited companies whose shares are not listed the general treatment should be of investment and not as stock-in-trade.
However, some people like share trader, share broker, underwriters etc. in some circumstances or due to likely event of change in management or forthcoming public issue etc. may acquire shares with a view to trade in the same within a short duration and the holder may choose to treat such shares though unquoted as stock-in-trade.
Shares listed on stock exchange - Shares listed on stock exchange are considered to be liquid and easily transferable. However, that also may not be true in practice always. We find that even in case of listed shares the following categories can be found.
a) Regularly traded shares- In this category also we find some share which have enough fluctuation in price and there is lot of volume of trading and there are other types of shares which have very low volume of shares. Some examples of shares based on volume in trading can be found in any days news papers.
b) Casually or rarely traded shares: We find some shares which are traded very casually and the volume is also low, a person who purchases such shares generally will have to hold the shares as investment at least for short duration.
c) Shares listed on regional stock exchanges only - We find some shares, which are listed on regional stock exchanges only and have very low liquidity.
Liquidity a factor to be considered:
Liquidity of shares is also an important factor to determine the character as stock or investment. Share which are not frequently traded or which have very low volume at stock exchange can best be considered as investment.
Even in very highly liquid shares on stock exchanges, some type of holders like promoters and directors may hold shares for control of the company, and therefore those shares will always be capital assets and cannot be regarded as stock-in-trade.
Highly liquid shares:
shares which have high liquidity, causes a difficulty to determine character of stock or investment. This is so because within a short duration an investor may find desired appreciation and wish to realize his appreciation in investment. Similarly if for some reasons price has fallen considerably, the investor may transfer the investment so as to realize remainder of his capital and reduce further capital erosion.
Dividend yield:
Investments by way of debentures and bonds or deposits yield safe, secured but low returns. Therefore, in case of investment in shares appreciation of even 5-7 % in a short duration can be considered as a good return on investment and not necessarily result of trading in share. It can be said that practically most of share trader or investor purchases shares for gain by way of appreciation and not necessarily for dividend. This can be justified because overall yield by way of dividend is hardly around 1%.
Short term capital asset:
Any minimum period of holding is not prescribed for treatment of asset as a capital asset. Therefore, holding of any period qualify an asset to be regarded as a short-term capital asset. In fact recently Tribunal has decided a case in which it is considered that property was purchased and sold on the same day when promoter directly gave possession to the ultimate buyer in view of agreement for transfer of booking of property during construction stage. See Mrs. Mangala Dilip Sable V JCIT (2007) 104 ITD 204 (Pune).
In relation to shares and other listed securities units of mutual funds etc. a holding period of twelve months makes them long term capital asset as against thirty six months for other assets. Thus, in law itself it has been considered that shares are a means of investment for short duration in comparison to other assets. Considering the holding period for long term asset it can be considered that under law any period of holding is enough to treat the capital asset as a short term capital asset. Shares may be held in physical form with blank transfer deeds, or duly registered in physical form or in own depository account or in account of depository of the share broker or the financier. If shares are purchased and held for any moment, they can be considered as short term capital assets, if they are not treated as stock-in-trade by the owner.
Economic situations may change very fast:
In current times situation may change very fast. For a recent example we can take case of shares of sugar companies. They appreciated in price very fast and on average by four times within a period of about fifteen months and then within a period of about four five month declined and prices of many sugar companies shares has come down to about one fourth of peak price achieved during last fifteen months. This is due to fall in price of sugar and Crude oil resulting into lower price of ethanol - to be produced by sugar mills in large scale in near future.
Investment - an adventure in nature to commerce:
The term 'business' included not only trading activity but also any adventure in nature of trade, commerce or industry. Investment activity is not a trading activity but is definitely an adventure in nature of commerce. Therefore, investment activity is also a business within the inclusive definition of 'business' given in section 2 (13) of the income-tax Act, 1961.
In the present days due to several investment opportunities available and fast changes therein it can be said that investment activity itself is in nature of adventure in nature of commerce. In case of shares in a single day one can get appreciation or loose significantly because the price fluctuation may be very high on a particular day.
It is difficult to ascertain the intention when a share is bought and sold within a short duration because suppose within two to three days we can get appreciation of 5 to 10 % we may be tempted to transfer the share and realize appreciation though at the time of purchase there may have been intention to hold the shares for longer duration. Similarly if price starts falling one may sell to reduce further losses without waiting for a trend reversal.
Various tests are not universally applicable or full proof:
The Courts have held several tests to examine whether a person is share-trader or an investor. Tests as laid down in the circular issued by the Board being instruction No.1827 dated 31.08.1989 now stands out-dated because of change in circumstances. Because of open economy, influence of share market world over and also global commodity markets world over, the circumstances have totally changed. Share market is based on news relating to companies as well as commodities - raw materials used by companies and finished goods produced. Furthermore, online speculation activity in commodities have also increased. All these factors have changed the situation very significantly. Therefore, application of a list of tests will be very much cumbersome, confusing and arbitrary situation and it will involve lot of litigation. The persons whose returns are accepted and the persons whose returns are selected for scrutiny will be put altogether on different basis of criteria and it will deny justice.
For example merely because one borrow money and invests in shares and securities cannot be regarded as trader. He may have perception that he will get return by way of appreciation in share price within two years which will be more than interest payable for two years. Whether interest will be allowed or not that is a different question, but merely use of borrowed funds cannot be conclusive to determine nature of activity.
In fact the circular itself , interalia, states as follows:
"The Assessing Officers are also advised that no single criterion listed above is decisive and total effect of all these criteria should be considered to determine the nature of activity."
Thus, mere issuance of a list of several factors would not make things clear.
Summary assessment procedures will not be effective:
Most of the return of income are now accepted by the revenue. Therefore, the returns which are accepted by the revenue will not be examined as per guidelines. Whereas in similar circumstances, other return which is examined under scrutiny procedure will be applied different tests by the A.O.
It is likely that the A.O. will apply double standards - in some cases where benefit of set off of business loss is claimed the A.O. will try to bring transactions under short-term capital loss category, and cases where lower tax liability is claimed the A.O. will try to bring the same in business category to demand higher tax. However nothing would be perfectly correct because the application of several tests as laid down by the board would be subject to personal preferences and prejudices.
In case there is so much requirement to examine controversy about treatment as stock or investment, a large portion of returns may require compulsory scrutiny. In many cases the A.O. may form an opinion about escapement of tax and issue notice for reassessment. Because wherever, there is some transactions in assets the A.O. may like to examine them in a manner opposite to one taken by the assessee.
Suggestion - In view of the above discussion the following suggestions are put forth for consideration of the Hon'ble Finance Minister.
a) Shares of private limited companies, unquoted companies, co-operative societies etc. must always be regarded as investment and not as stock-in-trade.
b) A period of 15- 30 days holding in case of shares and securities may be prescribed as minimum holding period for its treatment as capital asset.
c) Sale of any capital assets with less than prescribed period may be regarded as a trading activity and income or loss arising from such sale may be regarded as income from business or profession.
Definition of capital asset -
Even case of assets other than shares we find that units of mutual funds, bonds and debentures, paintings, gold and silver coins etc. may be transferred after a short duration of holding. Sometimes, even landed properties may be sold within a short duration. For most of assets, the period of holding is 36 months to make them long term capital asset. However, there is no period prescribed for treating the same as a short term capital asset and in those cases also the same problem of determining the character as trading stock or as investment arises and different views are possible. Lot of litigation have already taken place on such matters and things are not yet clear. To overcome this situation it is requested that any asset held for less than prescribed period may not be considered a capital asset.
To summarize:
Meaning of 'capital asset' may be amended to exclude any asset which has not been held for at least prescribed number of days. Different number of days may prescribed for different type of assets for example:
Shares and securities - 30 days.
Gold, silver, precious stones 60 days.
Landed properties 180 days.
In section 28 a new clause may be inserted to provide that profit on sale of any assets which is not a capital asset due to lower holding period, shall be deemed as business income irrespective of fact whether the asset is treated as stock-in-trade or not in the books of account, if any, maintained by the assessee.
Intra day trading (may be in nature of hedging in relation to capital assets) can be considered as business in all cases.
Accounting treatment of assessee as stock-in-trade of any asset may be considered as conclusive.
About the Author: -
Uma Kothari
BA.(H),AICWA,ACS
RECENT CASES
RECENT SERVICE TAX CASES
Service Tax - S. B. ENTERPRISES Versus COMMR. OF C. EX., COCHIN = 2008 Date of Decision: February 18, 2008 - CESTAT BANGALORE
No evidence to say that the appellant carried out clearing and forwarding activities on behalf of the Principal - held that mere procuring or booking orders for the Principal by an agent on a payment of commission basis would not amount to providing services as clearing and forwarding agent within the meaning of definition of that expression under Section 65(25)
Service Tax - NATIONAL ENGG. INDUSTRIES LTD. Versus COMMR. OF C. EX., JAIPUR = 2008 Date of Decision: December 13, 2007 - CESTAT, NEW DELHI
Tax wrongly paid on the commission got from foreign Co. through Indian railways under Business Auxiliary service - Rule 3 of Export of Services Rule, exempts export of service - contract reveals that the appellant would be paid USD equipment to non-convertible Indian Rupee at the Rate of Exchange prevailing on the date of supply order - equivalent amount of foreign exchange payable to the appellant was not released to the Indian Railways, so appellant complied with Rule 3(1)(b) -refund allowed
Service Tax - COMMR. OF C. EX., LUDHIANA Versus CITY CABLE = 2008 Date of Decision: April 7, 2008 - CESTAT, NEW DELHI
Application by revenue seeking grant of stay of order of Commissioner (A) setting aside the penalties - Commissioner observed that entire tax with interest was deposited before SCN so penalty is not justified - stay of the Commissioner order would enable Dept. to realise dues, which would not be proper without adjudication on merit by the Tribunal - At this stage, we are not inclined to go into the question of propriety of the imposition of penalty, so application is rejected
Service Tax - NCR CORPORATION INDIA PVT. LTD. Versus CST, BANGALORE = 2008 Date of Decision: May 16, 2008 - CESTAT BANGALORE
Appellants supplied Automatic Teller Machines (ATMs) for the period from July 2003 to March 2005 – Revenue contended that appellants rendered the cash replenishment services & caretaker services for the above period and these would fall under Business Auxiliary Service - automatic teller machine services came under the Tax net only w.e.f. 1.5.2006 and also the cash replenishment has also been included in the said services - hence tax cannot be levied for the period prior to that date
Service Tax - RAJINDER KUMAR Versus COMMR. OF C. EX., CHANDIGARH = 2008 Date of Decision: April 17, 2008 - CESTAT, NEW DELHI
Demand is confirmed on the ground that the applicants were providing business auxiliary service to the petroleum company - Contention of the applicants is that establishment expenses are being reimbursed to them by the company, and therefore, that portion cannot be added for charging service tax on the business auxiliary service - applicants are directed to deposit Rs. 35,000/-each in addition to the amount already deposited by the applicants – stay partly granted
Service Tax - COMMISSIONER OF C. EX., JAIPUR-I Versus TARGET INSTITUTION OF COMPETITION = 2008 Date of Decision: February 25, 2008 - CESTAT, NEW DELHI
Assessee obtained the registration on 27-7-04 and did not pay the tax but they recorded the fees in their records - no material for suppression of facts with intent to evade payment of tax so penalty u/s 78 is not justified - new levy on coaching centre and there was a dispute regarding availability of the exemption benefit and the respondent paid the tax before issue of SCN so imposition of penalty u/s 76 is excessive, so it is reduced
Service Tax - COMMISSIONER OF C. EX., LUDHIANA Versus BHANDARI HOSIERY EXPORTS LTD. = 2008 Date of Decision: February 19, 2008 - CESTAT, NEW DELHI
Import of services – assessee, service recipient - demand for the period from 9.2.2004 to February, 2006 prior to introduction of Section 66A - provisions of Section 66A of the Finance Act introduced w.e.f. 18.4.06, provides that the recipient of taxable service (provided by a person who is residing outside India) is liable to service tax - In the present case as the period of demand is prior to the introduction of Section 66A, Therefore, demand is not sustainable and, hence, set aside
Recent I.T Cases
Recent INCOME TAX Cases
Income Tax - THE COMMISSIONER OF INCOME TAX-V versus RELIANCE ELECTRONICS INDUSTRIES INDIA LIMITED = 2008
Date of Decision: July 16, 2008 - HIGH COURT DELHI
Addition on account of obsolete stock - assessee was in the business of mfg. television sets which required electronic components in respect of which technical obsolescence was a well-known fact - tribunal is justified in concluding that the assessee had valued its closing stock at the approximate market value as estimated by a qualified Chartered Engineer and AO could not point out any defect in the valuation report - no substantial question of law arises – revenue appeal dismissed
Income Tax - THE COMMISSIONER OF INCOME TAX DELHI (CENTRAL)-III versus M/S D. D. SALES CORPORATION = 2008 - TMI - 30048Date of Decision: July 22, 2008 - HIGH COURT DELHI
Question was with regard to the bar of limitation in making an assessment order u/s 158 BC - search having been conducted on 29.08.96 /30.08.96, the assessment made on 31.10.1997, is barred by limitation in view of the provisions contained in Section 158 BE - impugned order having been passed beyond the period of one year from the end of the month in which the last authorization for search had been executed - no substantial question of law arises – revenue’s appeal is dismissed
Income Tax - M/S KESHAV SHARES and STOCKS LIMITED versus INCOME TAX OFFICER AND OTHERS = 2008 Date of Decision: July 2, 2008 - HIGH COURT DELHI
Assessment u/s 143 - demand on account of income tax & interest raised - prior to the making of assessment order, no speaking order was passed by AO in respect of the objections taken by the assessee in its letter dated 17.09.07– in view of decision in Smt Kamlesh Sharma v. B.L. Meena, Income-Tax Officer case & inasmuch as the directives of the Supreme Court in GKN Driveshafts we set aside the assessment order – AO is directed to pass a speaking order and then proceed with assessment
Income Tax - COMMISSIONER OF INCOME TAX, DELHI-V. versus RBG INVESTMENT and FINANCE LTD. = 2008 Date of Decision: July 21, 2008 - HIGH COURT DELHI
Arrangement made between assessee & certain mutual funds with regard to subscription of fully convertible debentures, offered as a rights issue by the assessee’s sister concern - mutual funds were assured fixed rates of returns & assessee was able to obtain the fully convertible debentures of sale debentures only to make profits – so these can’t be treated as non business transaction - service charges were allowable expenses u/s 37 as they were wholly and exclusively expended for the business
Income Tax - COMMISSIONER OF INCOME TAX DELHI (CENTRAL)-III versus J.P.M FARMS (PVT.) LTD. = 2008 Date of Decision: July 18, 2008 - HIGH COURT DELHI
Levy of surcharge - proviso to Section 113 of the Income Tax Act, 1961 was inserted w.e.f 1.6.2002 whereby surcharge was sought to be levied by revenue on tax payable on undisclosed income determined in a block assessment year (1.4.1990 to 19.3.2001) - ITAT was correct in law in holding that the surcharge U/S 113 of the Income Tax Act, 1961 was not leviable in the present case - issue does not require any further investigation
Income Tax - COMMISSIONER OF INCOME TAX, DELHI-X versus M/S PRIMA INDIA PRODUCTS = 2008 Date of Decision: July 11, 2008 - HIGH COURT DELHI
Commissioner’s order u/s 263 requiring further investigation as Income-tax Officer had failed to enquire into the source of deposits/investments – Commissioner’s order merely raise doubts & suspicion - Tribunal is justified in concluding that the investments made by the assessee and its partners had a direct nexus with the sum disclosed by the assessee before the Settlement Commission - no further examination was required by the Income-tax Officer – revenue appeal dismissed
Income Tax - MALABAR AND PIONEER HOSIERY P. LTD. Versus COMMISSIONER OF INCOME-TAX = 2008 Date of Decision: January 16, 2008 - KERALA HIGH COURT
Preliminary expenditure incurred for construction of a shopping complex cannot be anything other than a capital expenditure as it goes to add to the capital of the project - Obviously, impugned expenditure is capital in nature & cannot be treated as revenue expenditure - rectification carried out u/s 154 of the Income-tax Act is perfectly justified - Tribunal rightly dismissed the assessee’s appeal on the validity of rectification as well as against disentitlement for the claim
Income Tax - COMMISSIONER OF INCOME-TAX Versus KARTAR SINGH AND CO. = 2008 Date of Decision: January 29, 2008 - PUNJAB AND HARYANA HIGH COURT
Issue whether deduction of interest & salary paid to partners could be disallowed or not in a case where the assessment was completed u/s 144(on status of registered firm), is highly debatable – AO rectified the assessment order on ground that since assessment was completed u/s 144, the status of firm was required to be taken as association of persons & hence disallowed deduction claim of assessee – impugned mistake is not apparent from record, hence rectification order is not valid
Postal Index Number (PIN)
Postal Index Number (PIN) is a 6 digit code.There are 8 PIN regions in the country. The first digit indicates one of the regions. The first 2 digits together indicate the sub region or one of the postal circles. The first 3 digits together indicate a sorting / revenue district. The last 3 digits refer to the delivery Post Office.FOR PIN CODE SEARCH :-----CLICK
The first digit of PIN indicates as below:
First Digit : Region States : Covered
2 ---Northern ---Uttar Pradesh and Uttaranchal
3 ---Western--- Rajasthan and Gujarat
4--- Western--- Chattisgarh ,Maharastra and Madhya Pradesh
5 ---Southern--- Andhra Pradesh and Karnataka
6 ---Sothern ---Kerala and Tamil Nadu
7--- Eastern--- West Bengal, Orissa and North Eastern
8--- Eastern ---Bihar & Jharkand
9 ---APS ---Army Postal Service
The first 2 digits of PIN indicates as below:
First 2 Digits of PIN Circle
11----------- Delhi
12 and 13 ---Haryana
14 to 16 -----Punjab
17----------- Himachal Pradesh
18 to 19 -----Jammu & Kashmir
20 to 28 ---- Uttaar Pradesh
30 to 34 -----Rjasthan
36 to 39 -----Gujarath
40 to 44----- Maharastra
45 to 49----- Madhya Pradesh
50 to 53----- Andhra Pradesh
56 to 59----- Karnataka
60 to 64----- Tamil Nadu
67 to 69----- Kerala
70 to 74----- West Bengal
75 to 77----- Orissa
78----------- Assam
79----------- North Eastern
80 to 85------Bihar
90 to 99------ APS