Gsoftnet

Late Filing Fees and Penalty for TDS/TCS Statements for Asstt. Year 2015-16

Before understanding the penalty provisions for failure to furnish the statement of Tax Deducted at Source or statement of Tax Collected as Source (i.e. commonly known as TDS/TCS return) we shall first have a look at the few basic duties of a person liable to deduct/collect tax at source and due dates for filing of TDS/TCS return.

Duties of the person liable to deduct/collect tax at source

  • He shall obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be) and quote the same in all the documents pertaining to TDS/TCS.
  • He shall deduct/collect the tax at source at the applicable rate.
  • He shall pay the tax deducted/collected by him to the credit of the Government.
  • He shall file the periodic TDS/TCS statements, i.e., TDS/TCS return.
  • He shall issue the TDS/TCS certificate in respect of tax deducted/collected by him.

Due Dates for filing of TDS/TCS return
The due dates for filing of statement of TDS i.e. TDS return for different quarters are as follows:


Now we will understand the provisions relating to penalty for not furnishing the TDS/TCS statement i.e. TDS/TCS return. 

Basic provisions
A person who fails to file the TDS/TCS return or does not file the TDS/TCS return by the due dates prescribed in this regard has to pay late filing fees as provided under section 234E and apart from late filing fees he shall be liable to pay penalty under section 271H.  In this part you can gain knowledge about the provisions of section 234E and section 271H.

Late filing fees under section 234E
As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS. TDS/TCS return cannot be filed without payment of late filing fees as discussed above. In other words, the late filing fees shall be deposited before filing the TDS return. It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.

Read about Penalty under section 271H (Click Here)

Free Download Justification Report Excel Generation Utility v2.1.

Recently, A new version(2.1) of Excel Generation utility for Justification report has been rolled out by TRACES.  This is updated Justification Report text file format to convert the same into readable Excel format.  This utility is used to convert from "TXT" to "XLS" format Justification report.

Why its need?

It is very useful to know about details of calculation of defaults.  The Deductors are receiving Default Notices from Income Tax department.  To know the calculation of default, Justification Report is provided by Income Tax Department and Traces provides report in Text format thus this utility converts Text file to Excel format.  In this way, separate sheets of Excel File details the calculation of defaults sent by Income Tax Department.

Steps to convert the Justification Report text file into excel:

  • Download the zip file from 'Requested Downloads' screen and save to your local machine
  • Unzip the file using Winzip. Password to unzip is 'JR__
    __', e.g., JR_AAAAA1235A_24Q_Q3_2010-11. This will save the Justification Report as a text file
  • Download the macro utility for Justification Report from this screen
  • Double-click the utility, excel sheet will open
  • Click on 'Enable Content' in the warning message to enable macros
  • Select the Justification Report text file and the folder to save the output excel file and click on button 'Generate TDS CPC Justification Report'
  • The text file will be converted into excel spreadsheet and saved in the selected folder
  • Open the Justification Report excel file from the folder in which it has been saved

Download Latest Justification Report Utility Ver. 2.1 (Click Here)

Key Features of Pradhan Mantri Suraksha Bima Yojana Jeewan Jyoti Bima Yojana.

Recently, The Finance Minister announced two major social security scheme in his budget speech i.e. Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeewan Jyoti Bima Yojana.

Important Key Features of Pradhan Mantri Suraksha Bima Yojana is as under:

Eligibility: Available to people in age group 18 to 70 years with bank account.

Premium:  Rs.12 per annum.

Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.

Risk Coverage:  For accidental death and full disability - Rs.2 Lakh and for partial disability – Rs.1 Lakh.

Eligibility: Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme.  Name of nominee to be given in the form.

Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank.

Who will implement this Scheme?: The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.

Government Contribution:

  • Various Ministries can co-contribute premium for various categories of their beneficiaries from their budget or from Public Welfare Fund created in this budget from unclaimed money. This will be decided separately during the year.
  • Common Publicity Expenditure will be borne by the Government.

Important Key Features of Pradhan Mantri Jeewan Jyoti Bima Yojana is as under:

Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.

Premium:  Rs.330 per annum.  It will be auto-debited in one instalment.

Payment Mode:  The payment of premium will be directly auto-debited by the bank from the subscribers account.

Risk Coverage: Rs.2 Lakh in case of death for any reason.

Terms of Risk Coverage: A person has to opt for the scheme every year.  He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.

Who will implement this Scheme?: The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.

Government Contribution:

  • Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money.  This will be decided separately during the year.
  • Common Publicity Expenditure will be borne by Government.

Free e-Taxation (Android App) for Mobile Tax Payers Users.

Recently we find Free Android Application for Mobile Tax Payers Users i.e. E-Taxation ver. 2.0.

Features:
1. Practical and theoretical knowledge of Direct Tax.
2. Case laws, circulars, notifications, public notice, tax calendar, corporate and taxation news.
3. Mock Test for students appearing for final exam.

Description 
Income Tax of INDIA

Features:
1. Practical knowledge of Direct Tax
2. Mock test for students appearing for exam
3. Latest case laws
4. Latest circulars
5. Income Tax notifications
6. public notice
7. tax calendar
8. corporate and taxation news
9. Basic Income Tax
10. Residential Status
11. Income Tax Returns
12. Documentations
13. Tax Rates
14. Tax on Individual
15. Tax on Senior Citizen
16. Tax on Super Senior Citizen
17. Due Dates of Return
18. TDS with PAN
19. TDS without PAN
20. Advance Tax Calculation
21. Interest Penalty as per section 234A, 234B and 234C
22. Computation of Income Tax
23. Tax on Salary 
24. Tax on House Property
25. Tax on Capital Gain
26. Tax on Income from Other Sources
27. Rebate 87A
28. Partnership Firm
29. Depreciation Chart
30. Deduction 80C to 80U
31. Assessment Procedure
32. Clubbing of Income
33. Carry Forward and set-off
34. Wealth Tax
35. Tax Planning

Other Key Features:
1. Income Tax Calendar
2. Public Notice
3. Income Tax Notification
4. Income Tax Circular
5. Case Laws
6. Text Papers



Click here to Download & Install E-Taxation Free App

Analysis of FVU Version 4.6 and Due Date of 4th Quarter for Asstt. Year 2015-16.

The long awaited FVU has been released late evening on 20th April 2015. Brief analysis of the same is as under: 

Mandatory to quote PAN of Responsible Person:
It is now mandatory to quote the PAN of the Responsible Person in all Regular TDS Returns and Correction Statements. It is applicable for all returns / corrections filed on or after 21st April 2015 irrespective of the financial year. This would help the Department identify the person better. 

Enhancement of Deduction under section 80CCE:
As per The Finance Bill 2014, the limit of Deduction under section 80CCE has been enhanced to Rs. 1,50,000 effective from financial year 2014-15 (earlier it was Rs. 1,00,000). Now Employee Deductors will be able to file the TDS Returns for Form 24Q (Salary) for Quarter 4 of FY:2014-15. Till now they were unable to validate their Returns with the earlier FVU. 

Reduction of Applicable List on ‘Nature of Remittance’ in Form 27Q (Foreign Remittances):
Earlier there were 66 categories to choose from defining the nature of remittance in foreign currency. This has now been reclassified by reducing the list to only 12 categories to select from. By consolidation, this would substantially reduce ambiguity. 

Correction Statements – Enablement of Updating ‘Tax Deposit Amount’ in Deductee Details:
Till now if tax was deducted at a higher rate owing to non-availability of PAN or for any other reason, the process of Corrections did not allow (as it was disabled) to update the ‘Tax Deposit Amount’ in the applicable Deductee Record. This has now been enabled – which implies that it would be possible to correct the ‘Tax Deposit Amount’. This had been causing a lot of inconvenience and was a long standing demand by tax deductors. 

For Government Deductors: 

Quoting AIN mandatory if TDS deposited through Book Entry:
If Government Deductors are making TDS / TCS payments through Book Entry, it is now mandatory to provide the AIN (Account Office Identification Number). 

Quoting of BIN Details mandatory for TDS / TCS Returns from FY:2013-14 onwards:
It is now mandatory to quote the BIN (Book Identification Number) for all payments made through Book Entry. This is applicable for all TDS / TCS Returns from financial year 2013-14 filed on and from 21st April 2015 onwards.

TDS Compliance for 4th Quarter of FY: 2014-15

  • Last date for payment of tax deductions for March 2015 - 30th April, 2015
  • Last date for filing of TDS returns for Q4 of FY: 2014-15 - 15th May, 2015
  • Last date for issuance of TDS certificates for Q4 of FY: 2014-15 - 30th May, 2015
For Free Download TDS Return Software (Click Here)


Source: TDS MAN

Taxpayers might face several issues while filing Income Tax Returns this year.

A vacation to an exotic foreign destination could become stressful, if you are busy collecting bills to show as expenditure while filing income tax (I-T) returns, instead of unwinding and enjoying yourself. This could soon be the predicament of every citizen leaving Indian shores.

The new income tax return (ITR) form, ironically called Sahaj (meaning easy), asks for details that could make filing tax returns a headache. Here are a few changes that could make the form - currently under review - easier to fill:

Exempt business travellers, expats
In most developed economies and prominent emerging ones, taxpayers are not asked to funish details of foreign travel, unless the revenue department has taken up the case for audit and found irregularities.

Experts claim data is already available with the governments and is used by the revenue departments.

If the government still want the information, it should at least exempt business travellers and foreigners working in India from it.

"Employees of information technology companies and export businesses frequently travel abroad. It will be cumbersome for them to maintain a log of out-of-pocket expenses and the money the company has paid for the travel," said Amarpal Chadha, partner, tax and Regulatory, EY.

Expatriates regularly visit home. Accounting for details such as gifts they carried for relatives or a new car they purchased can be cumbersome. Experts are not sure if the expenses they incur to paint their house or for a plumbing job in their home country should be included either.

Taxpayers on personal trips should be the only ones asked to provide detailed information, claim experts. The government could also introduce a slab - say, Rs 3 lakh - beyond which the traveller has to furnish information for spending.

"It should also be for approximate amounts as it is impossible to keep track of every penny spent," said Chadha.

Too many details unnecessary
The new ITR form wants the taxpayer concerned to not only declare bank account number and branch address but also demands information such as IFSC code, details of joint account holders and account balance as of March 31. It also asks the taxpayers to furnish similar details on accounts closed during the year.

Bank account details are linked to the PAN card. I-T department can run a query and get most of the information they need. "That's why people are questioning if the extra information will create any incremental value or it's just procedural compliance," said Suresh Surana, founder, RSM Astute Consulting Group, an accounting and auditing firm.

He suggested the ITR could simply ask for bank account number, name of the bank and branch address. If officers want more details in any particular case, they can always ask for it.

Kuldip Kumar, leader, personal tax, PricewaterhouseCoopers India, who also met Finance Minister Arun Jaitley on behalf of the industry, said there was no clarity on dormant bank accounts.

"If a person doesn't disclose details, there is no provision for it. If the account is activated later, the officer scrutinising the paper can claim the information was deliberately withheld," said Kumar.

We are taxpayers, not experts
Experts claim that those who work abroad and not classified as non-resident Indians would not be able to fill the new ITR without help from a professional. Looking at the questions, it feels that the taxpayer needs to be aware of Indian tax laws as well as the Double Taxation Avoidance Agreements (DTAAs).

Surana said that the form asks the taxpayer to mention the DTAA article under which they are claiming exemption and the corresponding rate of tax they would have paid in India for that income. "Such information is for mere academic use."

The government also needs to get rid of redundant questions. Tax consultants point out that there is repetition of disclosures the I-T department is seeking in various schedules. For example, a person would need to declare the interest earned from a foreign bank account in the income statement and again in the section which deals with foreign assets.

It happens only in India
India is not a unique case seeking stringent disclosures but it is among the few that seeking too many details.

Jiger Saiya, partner, BDO India, said Australia, China and the US require similar or more stringent disclosures on assets and income sources abroad. Take the example of the Foreign Account Tax Compliance Act in the US. It imposes obligation on financial institutions and intermediaries around the world to disclose information on their clients who are US citizens or tax residents.

Singapore, on the other hand, has more liberal policies. They don't tax income residents earned outside the country. While the UK is strict with its citizens when it comes to disclosure, expats don't need to declare their global assets.

Follow, but not selectively
Experts claim though India is trying to implement best global practices, the government should first put in the systems and processes that are on a par with those countries.

The government should introduce data privacy laws and systems while asking for information that even spouses may not be aware of. The US is way ahead.

Chadha has a point. In 2013, CA students hacked into I-T accounts of actors Shah Rukh Khan and Salman Khan, cricketers Sachin Tendulkar and M S Dhoni, and industrialist Anil Ambani.

Divya Baweja, partner, Deloitte Haskins & Sells, suggested the government strengthen its Annual Information Return report system to track defaulters and those with unaccountable money. US Internal Revenue Service has such a system to track its citizens' financial transactions.

Key Features of FVU 4.6 and 2.142 Ver. for Asstt. Year 2015-16 w.e.f. 21.04.15

Recently released latest TDS File Validation Utility (FVU) Ver. 4.6 and 2.142 for Asstt. Year 2011-12 onwards and from Asst. Year 2008-09 to 2010-11 respectively with effect from 21st April, 2015.  The Key Features of both the version are as under :

Key Features – File Validation Utility (FVU) version 4.6

  • Quoting of PAN of responsible person for deducting/ collecting tax.
  • Quoting of AIN mandatory only if the TDS/TCS has been deposited by book entry i.e., through transfer voucher.
  • Quoting of BIN details mandatory only for the statements pertaining to FY 2013-14 onwards.
  • Update of tax deposit amount in deductee details enabled for the deductee records where tax has been deducted at higher rate.
  • Reduction in the applicable list of “Nature of Remittances” (Applicable in case of Form no. 27Q).
  • Enhancement of deduction allowed under section 80CCE from Rs. 1,00,000/- to Rs. 1,50,000/-.
  • This version of FVU will be applicable with effect from April 21, 2015.

Key Features – File Validation Utility (FVU) version 2.142

  • Quoting of PAN of responsible person for deducting/ collecting tax.
  • This version of FVU will be applicable with effect from April 21, 2015



Latest TDS FVU Ver. 4.6 and Ver. 2.142 with all updates for Asstt. Year 2015-16 w.e.f. 21.04.2015

By a long waiting NSDL-TIN has been released on 20th April, 2015 a New TDS File Validation Utility (FVU) Ver. 4.6 and Ver. 2.142 for Asstt. Year 2011-12 onwards and from Asst. Year 2008-09 to 2010-11 respectively with all updates for Asstt. Year 2015-16 as per amendment maximum Tax Exemption limit u/s. 80CCE.  An analysis of File validation Utility (FVU) Version 4.6 and 2.142 are as under:

Responsible Person (TDS Deductor/Deductee) mandatory to Quote PAN :

TDS Deductor/Deductee who is responsible person mandatory to quote the PAN in all Regular TDS Returns and Correction Statements. It is applicable for all returns / corrections filed on or after 21st April 2015 irrespective of the financial year. This would help the Department identify the person better. 

Updated Maximum Limit of Deduction under section 80CCE:

As per The Finance Bill 2014, the limit of Deduction under section 80CCE has been enhanced to Rs. 1,50,000 effective from financial year 2014-15 (earlier it was Rs. 1,00,000). Now Employee Deductors will be able to file the TDS Returns for Form 24Q (Salary) for Quarter 4 of FY:2014-15. Till now they were unable to validate their Returns with the earlier FVU. 

Reduction of Applicable List on ‘Nature of Remittance’ in Form 27Q (Foreign Remittances):

Earlier there were 66 categories to choose from defining the nature of remittance in foreign currency. This has now been reclassified by reducing the list to only 12 categories to select from. By consolidation, this would substantially reduce ambiguity. 

Correction Statements – Enablement of Updating ‘Tax Deposit Amount’ in Deductee Details:

Till now if tax was deducted at a higher rate owing to non-availability of PAN or for any other reason, the process of Corrections did not allow (as it was disabled) to update the ‘Tax Deposit Amount’ in the applicable Deductee Record. This has now been enabled – which implies that it would be possible to correct the ‘Tax Deposit Amount’. This had been causing a lot of inconvenience and was a long standing demand by tax deductors. 

For Government Deductors: 

Quoting AIN mandatory if TDS deposited through Book Entry:

If Government Deductors are making TDS / TCS payments through Book Entry, it is now mandatory to provide the AIN (Account Office Identification Number). 

Quoting of BIN Details mandatory for TDS / TCS Returns from FY:2013-14 onwards:

It is now mandatory to quote the BIN (Book Identification Number) for all payments made through Book Entry. This is applicable for all TDS / TCS Returns from financial year 2013-14 filed on and from 21st April 2015 onwards.

These two FVU versions are mandatory with effect from April 21, 2015.

Download TDS FVU version 4.6.
Download TDS FVU version 2.142.

Ref. : TDSMAN

Disclosure of all Bank Accounts mandates by CBDT in Income Tax Reutrn Forms for Asstt. Year 2015-16

Earlier CBDT had issued a New Notification No. 41/2015 dated 15.04.2015 with several changes in ITR Forms i.e. ITR-I, ITR-2, ITR-4S, ITR-V for Asstt. Year 2015-16.  The major changes in this Notification that, 'Disclosure of all Bank Account Details', held by Taxpayee in India at any time during Fin. Year 2014-15 whether it is Joint Account even.  Even though the Taxpayer should submit the details of Pass Book with the Income Tax Return Forms.

The Following Details must provided by Taxpayee to CBDT : 

  • Number of Bank account held by you during previous years (whether open or closed)
  • IFSC code of Branch'
  • Name of Bank
  • Name of the Joint Holder(s)
  • Account Number
  • Account Balance at the end of the previous year i.e. 31st March, 2015


Major Changes made in Fin. Year 2014-15 for Filing of Income Return of Asstt. Year 2015-16

TAX RETURN FILER SHOULD BE KEPT IN MIND SOME LITTLE CHANGES AND POINTS WHILE FILING ITR FOR THE A.Y. 2015-2016

Recently Income Tax Department had issued a Notification No. 41/2015 dated 15th April 2015, deemed to have come into force w.e.f. 01st April 2015 regarding filing of Income Tax Return for the Financial Year 2014-15. 

ITR-1 (SAHAJ) & ITR-4S (Sugam)

  • ITR-1 (SAHAJ) & ITR-4S (Sugam) cannot be filed by individual who has earned any income from source outside India.
  • Introduction of EVC for verification of return of income filed as an option to send ITR-V to CPC, Bangalore.
  • Super Senior citizens are now allowed to file ROI in paper form even though their income exceeds Rs 5 lakhs subject to other conditions.

ITR-1

  • Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.
  • Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

ITR-2

  • Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.
  • Details of Foreign Travel made if any (For resident and non resident both) includes, Passport No, Issued at, name of country, number of times travelled and expenditure.
  • Details of utilization of amount deposited in capital gain account scheme for years preceding to last two assessment years. Particulars asked include year of utilization, amount utilized, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.
  • In case of LTCG & STCG not chargeable to tax to Non-resident on account of DTAA benefit, It is required to furnish Country name, Article of DTAA, TRC obtained or not?
  • For Non-resident, Income from other sources, If any income chargeable to tax at special rate provided in DTAA, It is now required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not?, Corresponding rate of tax under income tax act.
  • Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

In schedule FA- Foreign assets disclosure, following details added:-

  • Foreign Bank accounts details: It is now further require to furnish Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India.
  • In similar manner, details of income from financial interest in any entity outside India along with details of income offered to tax in ITR-2 from such income.
  • Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India

ITR-4S

  • Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.
  • Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

Rights of Employees & Others TDS Deductees and Duties of TDS Deductors.

There are some rights of Employee and Other TDS Deductees whose Tax Deduct on their Income of Salary or Other Source of Income as Interest as well as Duties of TDS Deductors which are as under :

Credit of TDS - If tax has been deducted at source u/s 192 to 194 A/B/BB/C/ D/E/EE/F/G/H/I/J/K, 195, 196A/B/C and D, the person from whose income (payment) the tax has been deducted i.e. Payee or assessee shall not be asked upon to pay the tax himself to the extent tax has been deducted (Sec.205). Moreover u/s 199 such tax deducted at source shall be treated as payment of tax on behalf of the payee (assessee).

TDS Certificate - U/s 203 payee (tax payer) is entitled to obtain a certificate from the payer (tax deductor) in Form 16-A specifying the amount of tax deducted and other prescribed particulars.

Form 26AS - As per section 203AA the prescribed income tax authority or the person authorized by such authority (as referred in section 200(3))will be required to deliver to the person from whose income the tax has been deducted/paid, a statement of deduction of tax in the prescribed form. Such statement as per rule 31AB will be required to be furnished in Form no.26AS by the 31st July following the financial year during which the taxes were deducted/paid (also refer Notification no. 928 E dt. 30.6.2005 of CBDT).

Deduct Tax at Correct Rate and deposit in Government Account – Sec. 200

Every person responsible for deducting tax at source shall at the time of payment or credit of income, whichever is earlier, verify whether the payment being made is to be subject to deduction of tax at source. If it is so, he must deduct such tax as per the prescribed rates. Further he is required to deposit such tax deducted in the Central Government Account within the prescribed time as specified in Rule 30.

Issue a TDS certificate

Further, such person is required to issue a certificate of tax deduction at source u/s 203 to the person from whose income the TDS has been done, in the prescribed proforma i.e. Form No.16A within prescribed time(as discussed earlier).

File Prescribed Return/Quarterly Statement

A return of TDS is a comprehensive statement containing details of payments made and taxes deducted thereon along with other prescribed details. For deductions made prior to 01.04.2005 earlier every deductor was required as per the provisions of Section 206 (read with Rule 36A and 37) to prepare and deliver an annual return, of tax deducted at source. However w.e.f. 01.04.2005 there is no requirement to file annual returns and instead Quarterly statements of TDS are to be submitted in form 26Q by the deductors. 

Source: www.tdsman.com

CBDT directs its officials to complete PAN migration activity as per new jurisdiction orders by April 25, 2015

Completion of PAN Migration Activity

After the new jurisdiction orders have been passed by you/ your officers' subsequent to restructuring, the PAN requires to be migrated to the new Ward/ circle as per the new jurisdiction. It appears that this activity has not been completed by some of the field officers. This is causing inconvenience to a large number of taxpayers. The Chairperson CBDT has desired that this activity of migrating PANs must be completed by 25 th April, 2015 so that the taxpayers are aware of their jurisdiction and grievances do not arise This is also a priority area as the tax payer need latest jurisdiction for filing of Return of Income. 

Furthermore, I request you to provide the new jurisdiction of all ranges, circles and wards of your Region, on the National Website (www.incometaxindia.gov.in ) pages pertaining to your Region, to enable the taxpayers to have easy access to this information. A new button on " Jurisdiction" shall be created on your Regional page on the National Website by 30 th April. You are requested to have the jurisdiction document uploaded on the website by 05th May 2015. As you may know, the training to all Regions' nominated officers to upload and update the regional pages of the website has been imparted by the Directorate of Systems in December, 2014. The user name and
password for uploading documents on your Regional pages has already been provided to your officers by the DIT(S)-4 team in January 2015. However, for facilitating this activity, DIT(S)-4 shall be circulating a common format and a step-by-step guide for your convenience. For any assistance with reference to uploading the jurisdiction document Sh. Rajendra Singh, JDIT (Mob.-9013852497) & Sh. Sanjaya Kumar Chaursia, DDIT(Mob.- 9013852864) may be contacted. 

Download Completion of PAN Migration Activity Notification (Click Here)

New ITR Forms and e-Filing Requirements for Asstt. Year 2015-16

New ITR Forms and e-Filing requirements: Assessment year 2015-16

I. Introduction to New Rule 12
The CBDT has notified amendment to Rule 12 of the Income-tax Rules which shall be applicable for the assessment year 2015-16.
Till assessment year 2014-15, individuals or HUFs, who were otherwise not liable to file return of income electronically, could claim tax refund by filing return of income in physical form. However, the new provision makes it mandatory for every taxpayer to file return of income electronically so as to claim refund of tax from the department.
Under the extant Rules, every super senior citizen (being an individual of 80 years or more) is required to file return of income electronically, if his total income exceeds five lakh rupees. The new Rules provide an option to the super senior citizens, whose total income exceeds five lakh rupees or who is claiming income-tax refund, to file return of income in physical form, provided return is furnished in ITR- 1 or ITR- 2.
As per the new provision every individual or HUF whose total income exceeds five lakh rupees or who is required to file return in Form ITR-3 or ITR-4 shall file return of income electronically.
II. E-filing of the return
E-fling of return is mandatory for different classes of assessees. Rule 12 introduces a new class for filing of return of income using electronic verification code. Whether return of income should be filed electronically, with or without digital signature, using electronic verification code or in physical form is presented below in tabular format:

Particulars
E-filing with digital signature
E-filing without digital signature
E-transmission in return under electronic verification code
Filing of return in physical form
Individual or HUF
If income does not exceed Rs. 5,00,000
Income exceeding Rs. 5,00,000 (in case of an individual who is less than 80 years of age during the previous year)
×
Income-tax refund is due (in case of an individual who is less than 80 years of age during the previous year)
×
Super Senior Citizen ( filing return in ITR-1 or ITR-2)
If accounts are required to be audited
×
×
×
If return is being filed in Form ITR- 3 or Form ITR-4
×
Resident and ordinarily resident having assets (including financial interest in any entity ) located outside India
×
Resident and ordinarily resident having signing authority in any account located outside India
×
Resident and ordinarily resident having income from any source outside India
×
If assessee is claiming relief in respect of tax paid outside India, under Section 90 or Section 90A or Section 91
×
If assessee is filing report of audit (i.e., audit report under Sections 92E, 10A, 10AA, 44AB, etc.)
×
Company
In all cases
×
×
×
Political Party
In all cases
×
×
×
Charitable or religious trust
Filing return of income under Section 139(4A)
×
Specified research association, news agency, etc.
Filing return of income under Section 139(4C)
×
University or college
Filing return of income under Section 139(4D)
×
Firm/LLP/AOP/BOI/Artificial juridical person/Cooperative Society/Local Authority
Whose accounts are required to be audited
×
×
×
Others
×

III. Key changes in new ITR Forms
1. Details of all bank accounts held by assessee
[ITR 1, 2, 4S]
Under new ITR forms, an assessee is required to report details of all bank accounts held by him in India at any time (including opened/closed ones) during the previous year.
Following details shall be reported in respect of each bank account held by assessee in India:
 a)  IFSC Code of the Bank
 b)  Name of the Bank
 c)  Name of joint holders (if any)
 d)  Account Number
 e)  Account Balance as on 31st March of the previous year
2. Details about the foreign travelling
[ITR 2]
If assessee has travelled overseas, the details about such travelling should be furnished in the return form. The details to be furnished in the return shall be:
 a)  Passport details
 b)  Country visited during the year and number of visits
 c)  If assessee is a resident, amount incurred from own sources in relation to such travel
3. Reporting of Aadhaar Number
[ITRs 1, 2, 4S]
The new ITR forms require assessee to provide his Aadhaar Number (if assessee has obtained the same).
4. Date of Formation by HUF
[ITR 2, 4S]
Under new ITR forms, an HUF is required to report date of its formation.
5. Reporting of amount that has remained unutilized in capital gains account
[ITR 2]
If assessee is unable to roll over the investment in new capital asset within the specified time period so as to avail of the exemptions under section 54, 54B, etc., he can deposit the sum in capital gains account scheme.
In that case, exemption to be granted to assessee shall be aggregate of actual investment in new capital asset and amount deposited in capital gains account scheme before due date of filing of return of income.
The amount so deposited in the capital gains account scheme should be utilized for investment in specified asset within specified time-limit, otherwise the unutilized amount shall be chargeable to tax in the previous year in which the time-limit expires. The unutilized amount would be taxable as short-term capital gain/long-term capital gain, depending upon the nature of original capital gain.
Under New ITR forms, requisite details are required to be provided in respect of amount so deposited in capital gains account scheme.
The details which are required to be provided if amount is deposited in capital gains account scheme are as follows:
 a)  Previous year in which asset is transferred
 b)  Section under which exemption is claimed
 c)  Year in which new asset is acquired
 d)  Amount utilized out of capital gains account scheme to acquire new asset
 e)  Amount that has remained unutilized in capital gains account scheme or amount which is not used for making investment in specified new asset
6. Return filed pursuant to order of CBDT under Section 119
[ITR 1, 2, 4S]
For avoiding genuine hardship, by general or special order, the Board may authorize any tax authority other than CIT (Appeals) to admit an application or claim for any exemption, deduction, refund or any other relief after the expiry of the period specified under the Act.
If assessee is filing return of income pursuant to an order of CBDT under Section 119(2)(b), it shall tick the check-box [ under Section 119(2)(b)] introduced in the new ITR forms.
Generally CBDT extends date of filing of return under Section 119 in cases of natural calamities or when taxpayer faces genuine hardship in certain circumstances. Recently, the due date of filing of return for J&K taxpayers was extended by the CBDT due to devastation caused by flood in J&K.
7. Details about the income taxable under DTAA
[ITR 2]
If capital gain or residuary income of assessee is taxable as per provisions of the DTAA entered into between India and a foreign country, of which the assessee is a resident, following details shall be furnished in the new return forms:
 a)  Name of the Country
 b)  Relevant Article of the DTAA
 c)  Rate of tax under DTAA (applicable in case of residuary income)
 d)  Confirmation if TRC has been obtained
 e)  Corresponding section of the Act which prescribe the rate of tax (applicable in case of residuary income)
 f)  Amount of income
Further, the special tax rate on capital gain or residuary income and tax on such income as per DTAA shall be disclosed separately in Schedule SI.
8. Advance Pricing Agreement
[ITR 2]
As per provisions of Section 92CD – Effect of Advance Pricing Agreement ('APA'), where any person has entered into an APA and prior to the date of entering into the agreement, any return of income has been furnished under section 139 for any previous year to which such agreement applies, such person shall furnish, within a period of three months from the end of the month in which the said agreement was entered into, a modified return in accordance with the APA.
Accordingly, ITR forms pertaining to the Assessment Year 2014-15 were amended to allow assessee to tick the relevant check-box in Part A – Gen [ Modified Return - Section 92CD].
Now, under new ITR forms, assessee would also be required to enter Receipt No. and Date of filing of original return where modified return is furnished under Section 92CD.
Further, in this case the assessee shall be required to give an additional declaration that it satisfies the terms and conditions of the APA. The assessee shall declare the following in the return:
"I further declare that the critical assumptions specified in the agreement have been satisfied and all the terms and conditions of the agreement have been complied with. (Applicable, in a case where return is furnished under Section 92CD)"
9. Details about the foreign assets and foreign income
[ITR 2]
The new ITR forms seek more details about the foreign assets and income from any source outside India. Schedule FA is substituted which requires assessee to provide detailed information about such foreign assets and income. The additional disclosures in the new ITR form shall be as under:
1) Foreign Bank Account:
 a)  Status of account holder (i.e., Owner/Beneficial Owner/Beneficiary)
 b)  Date of opening of such bank account;
 c)  Interest accrued in the account; and
 d)  Details about the interest offered to tax in the return.
2) Financial Interest in a foreign entity:
 a)  Nature of financial interest (direct, beneficial ownership or beneficiary) in such entity;
 b)  Date since such interest is held;
 c)  Income accrued from such interest;
 d)  Nature of income; and
 e)  Details about the income offered to tax in this return.
3) Foreign Immovable Property or any other capital asset
 a)  Whether ownership in such asset is direct or beneficial or as beneficiary;
 b)  Date of acquisition of such asset;
 c)  Income derived from such asset;
 d)  Nature of income; and
 e)  Details about the income offered to tax in this return
4) Signing authority in any foreign account
a) Whether income accrued in such account is taxable in assessee's hands; and
b) If yes then furnish details about the income offered to tax in this return
5) Trustee or Beneficiary or Settlor in a foreign trust
 a)  Date since the position of trustee or beneficiary or settlor held in foreign trust;
 b)  Whether income derived from the trust is taxable in assessee's hands; and
 c)  If yes, details about the income offered to tax in this return
6) Any other income derived from any source outside India
 a)  Country Name and Code;
 b)  Name and address of the person from whom income is derived;
 c)  Amount of income derived;
 d)  Nature of income;
 e)  Whether income is taxable in assessee's hands; and
 f)  If yes, details about the income offered to tax in this return.
10. Agricultural income
[ITR 2]
Unlike the existing ITR forms which require assessee to provide figure of net agricultural income which is exempt from tax, the Schedule EI in new ITR forms requires assessee to provide following figures separately:
 a)  Gross agricultural receipts
 b)  Expenditure incurred on agriculture
 c)  Unabsorbed agricultural loss of previous eight assessment years
 d)  Net agricultural income for the year.
11. Distinction between heavy and light good carriages removed
[ITR- 4S]
The Finance (No. 2) Act, 2014 amended Section 44AE to remove the distinction between heavy goods carriages and light good carriages. From Assessment Year 2015-16, presumptive income in respect of goods carriages is computed at a uniform rate of Rs. 7,500 per month for any goods carriages.
Therefore, changes have been made in the ITR forms to remove the concept of type of goods carriages and to provide for uniform rate of Rs. 7,500 per month for computation of presumptive income of goods carriages.
12. Acknowledgment of details relating to exempt income in ITR-V
[ITRs- 1, 2, 4S]
Relevant columns have been provided under ITR-V to acknowledge exempt income, inter-alia, agricultural income and other exempt incomes.
13. Concessional tax rate in case of sale of listed securities (other than unit)
[ITR 2]
As per the existing proviso to Section 112, if tax payable on long-term capital gains arising on transfer of a capital asset, being listed securities or units or zero coupon bonds, exceeds 10% per cent of the amount of capital gains before allowing for indexation adjustment, then such excess shall be ignored.
The Finance (No. 2) Act, 2014 amended the said proviso to provide that the concessional rate of tax of ten per cent shall be available only for long-term capital gain arising from transfer of listed securities(other than unit) and zero coupon bonds.
Therefore, consequential amendment is made to ITR forms in accordance with the amendment.
14. Sale of units of business trust
[ITR- 2]
The Finance (No. 2) Act, 2014 introduced a new Chapter XII-FA in the I-T Act to provide for special provisions relating to business trust. The special taxation regime contains provisions for taxability of income in the hands of business trusts and the income distributed to its unit holders.
Consequential amendment is made to Section 10(38) to provide that long-term capital gain arising from transfer of unit of a business trust on which securities transaction tax (STT) is paid shall be exempt from tax.
Similarly, Section 111A has been amended to provide that short-term capital gain arising from transfer of unit of a business trust on which STT is paid shall be chargeable to tax at reduced rate of 15%.
Under new ITR forms necessary changes have been made in this regard.
15. Securities held by FIIs
[ITR 2]
Section 2(14) of the Act was amended by the Finance (No. 2) Act, 2014 to provide that securities held by FIIs shall be deemed as 'Capital Assets'. The amendment was made to end the controversy of categorization of income of FIIs as business income or capital gains.