New Set of Draft RTI Rules issued by Government - 2017

New Set of Draft RTI Rules issued by Government - 2017

No. 1/5/2016-IR
Govt. of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

North Block, New Delhi
Dated the 31st March, 2017


Subject:- Framing RTI Rules, 2017 in supersession of RTI Rules, 2012 — comments regarding.

A proposal for making Rules under RTI i.e. RTI Rules, 2017 in supersession of RTI Rules, 2012-by the Central Government under section 27 of the RTI Act, 2005, is under consideration of the Department of Personnel & Training.

2. A copy of draft RTI Rules, 2017 in this regard is enclosed at Annexure-I.

3.It has been decided to invite views / suggestions of the concerned stakeholders on the draft RTI Rules, 2017. The views / suggestions may be sent latest by 15th  April, 2017 through e-mail only to Ms. Preeti Khanna, Under Secretary (RTI), North Block at email ID

(Gayatri isftra)
Encl. As above.
Joint Secretary (IR)
Tele: 2309 2755

How to handle TDS on sale of property

Since June 2013, it has been mandatory for buyers of immovable property to deduct TDS from the amount to be paid to the seller. It is the responsibility of the buyer to deduct TDS if the transaction value exceeds Rs. 50 lakh. The buyer is required to deduct TDS @ 1% on the total consideration and deposit the same in the account of the income tax authorities in the prescribed format.

Form 26QB must be filled by the buyer either online or offline to deposit the TDS. One can click the following link to access the form online.

Due date for filing

The challan (Form 26QB) must be filed within 7 days from the month in which the TDS was deducted by the buyer.

Information with respect to the buyer and seller (name, address, PAN, status), details of the property, consideration and TDS payable must be entered in the form.

One can choose to pay either through Netbanking or at the branch of the bank. If the taxpayer chooses e-tax payment on subsequent date at the bank branch, an acknowledgement number is generated. This number must be retained by the taxpayer to be presented to the bank while making the payment.

Once the form is filed and payment made to the income tax authorities, approved form 26QB or form 16B can be downloaded by logging into TRACES as a tax payer. Form 16B must be provided by the buyer to the seller as a proof of deposit of TDS.

Points to note

1. Dealings in agricultural land are excluded from the requirements of these provisions.
2. If the consideration is being paid in installments, TDS must also be deducted on each installment.
3. If PAN is not provided by the seller, TDS @ 20% is deductible.

Source: The Economic Times

The due date for filing declaration in Form 1 (PMGKY) extended to 10th April 2017

The due date for filing declaration in Form 1 (PMGKY) has been extended from 31st March 2017 to 10th April 2017 for assessees who have paid Tax, Surcharge, Penalty and Deposit under the Scheme, in the banks by 31st March 2017 For details.

Circular No. 12 of 2017
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(TPL Division)
Dated: 31st of March, 2017 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016

The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (hereinafter ‘the Scheme’) has commenced on 17.12.2016 and is open for declarations  upto 31.03.2017.

2. Representations have been received from various stakeholders regarding difficulties in uploading   of declaration   in Form   No.1 under   the   Scheme. Instances   have   been communicated wherein despite making payment of tax, surcharge, penalty and deposit under the  Scheme,  Challan  Identification  Number  / deposit  reference  number  with  respect  to  the payment  of  tax,  surcharge,  penalty  and  depositunder the  Scheme has  not  been  provided  by the banks. Consequently, the assessees are unable to upload Form No.1.

3.Considering the rush in banks during last days of financial year, which also happens to be the last date of filing declaration under the Scheme, CBDT has decided that if an assessee has made payment of tax, surcharge, penalty and deposit under the Scheme, in the banks by the  closing  hours  of  31st March,  2017,  he shall be  allowed  to file  declaration  in  Form No.1 under the Scheme by the 10th of April, 2017.

(Dr. T. S. Mapwal)
Under Secretary to the Government of India
Copy to:-
1.PS to FM/ OSD to FM/ OSD to MoS(R).
2.PS to Secretary (Revenue).
3.The Chairman, Members and all other officers in CBDT of the rank of Under Secretary and above.
4.All Pr. Chief Commissioners/ Pr. Director General of Income-tax –with a request to circulate amongst all officers in their regions/ charges.
5.Pr. DGIT (Systems)/ Pr. DGIT (Vigilance)/ Pr. DGIT (Admn.)/ Pr. DG(NADT)/ Pr. DGIT (L&R).
7.Web manager for posting on the departmental website.

Last Chance to e-File IT Return for A.Y. 2015-16 on 31st March 2017

Once the e-Filed returns are processed and the return is termed as defective, assesse is facilitated to submit the response against defective notice (u/s 139(9)) sent by CPC/AO.

The last date for submission of a valid return for AY 2015-16 expires on 31st March 2017 u/s 139. Those taxpayers whose returns for AY 2015-16 have been declared invalid u/s 139(9) by CPC are requested to file their return u/s 139(4)/139(5) before 31 March 2017.

The detailed process to submit the Response to defective notice is as below
  • Login on to with your User ID, Password and Date of Birth/ Incorporation
  • Go to e-File -> e-File in response to notice u/s 139(9)
  • On successful validation if there is any defective notice raised by either CPC/AO, the below screen will be displayed
  • Assesse must click on “Submit” link under Response column for the respective defective notice number in order to submit the response.
  • For defective notice raised by AO, the below screen will be displayed.
  • Assesse selects the ITR from the drop down and uploads the respective XML file and clicks on Submit. Once the response is successfully submitted, the below success page will be displayed.
  • For defective notice raised by CPC, the below screen will be displayed.
  • If the assesse Agrees with the defect i.e. assesse selects Yes under column “Do you agree with defect?”, Select ITR Form Name, Assesse needs to upload the respective return XML.
  • If the assesse does not agree with the defect i.e. assesse selects No under column “Do you agree with defect?”, Assesse needs to provide the remarks under column Assesse Remarks as shown in the below screen.
  • If the Error Code value is “3” and the assesse does not agree with the defect i.e. e-File in response to assesse selects No under column “Do you agree with defect?”, Assesse needs to provide the additional information as shown in the below screen.
  • If the company is FII/FPI i.e. if the assesse selects YES in the dropdown displayed under Details for Error Code 3 table, further details needs to be provided by assesse as displayed in the below screen and assesse needs to click on Submit.
  • If the company is FII/FPI i.e. if the assesse selects NO in the dropdown displayed under Details for Error Code 3 table, Assesse needs to provide the respective remarks in the text box provided and click on Submit.
  • On successful submission of the response by the assesse, the below success screen is displayed.
  • Assessees can click on “View” link under Response column to view the response submitted. The below details will be displayed.
  • Click on Transaction ID to know the details of response submitted.
Note: To view the XML or ITR (PDF), please do to My Account -> e-Filed Returns/Forms
Withdrawal of Defective response submitted
  • Assesse is allowed to withdraw the response submitted for any defective return within 3 days of submission.
  • Assesse needs to click on Withdraw link under Response column.
  • Details of the submitted response will be displayed. Assesse needs agree to withdraw by checking the checkbox and click on Confirm Withdrawal button.
  • Once the response has been withdrawn successfully the below screen is displayed.

Simplified ITR-1 with few new columns to e-file IT Return for A.Y. 2017-18 w.e.f. 01st April 2017

A crisp income tax form for salaried individuals will be introduced from April 1, doing away with some columns to simplify the filing of returns.

Individuals with salary and interest income will have to fill fewer columns as some of these for claiming income deductions have been clubbed in ITR-1 form called 'Sahaj'.

In the form for assessment year 2017-18, deductions claimed under different sections of Chapter VIA have been removed and only mostly used ones have been included.

"Columns that will remain include those for claiming deductions under Section 80C, mediclaim (80D). Those individuals who want to show deductions under other heads can do so by selecting an option," an official told PTI.

Currently, the ITR-1/Sahaj has 18 different columns for claiming deductions under Section 80 of the Income Tax Act.

Under Section 80C, a deduction of Rs 1.5 lakh can be claimed from total income for investments in LIC, PPF and repayment of housing loan.

Section 80D provides for tax deduction from the total taxable income for the payment of medical insurance premium.

This deduction is over and above the deduction under Section 80C.

"The forms would be notified by this month end as we want assessees to start filing returns from April onwards," the official added.

The move is aimed at encouraging more number of people to file returns. Currently, only 6 crore out of 29 crore persons holding permanent account number (PAN) file income returns.

The current 3-page form is simplified version of an income tax return form after removing mandated disclosure of foreign trips and dormant bank accounts introduced two years back.

People with an income of more than Rs 50 lakh per annum and who own luxury items like yacht, aircraft or valuable jewellery will continue to disclose these expensive assets with the income tax department in the ITRs.

The e-filing facility for ITR-1 is likely to be enabled from April 1 and ITRs can be filed till the stipulated deadline of July 31.

At the time of filing the form, the taxpayer has to fill in his PAN, Aadhaar number, personal information and information on taxes paid, and TDS will be auto-filled in the form.

Post July 1, as per amendments to the Finance Bill 2017 as passed by the Lok Sabha, it would become mandatory for an assessee to provide the Aadhaar number or the number showing that he has applied for Aadhaar in the ITR.

Also the efiling website would have an online tax calculator to help assessees determine their tax liability.

ITR 1-Sahaj, 2 and 2A can be used by individual or Hindu Undivided Families whose income does not include income from business.

ITR 4S - Sugam can be used by an individual or HUF whose income includes business income assessable on presumptive basis.

Source: PTI

Aadhaar to be mandatory to file IT Returns or New PAN Card.

Aadhaar must to file I-T returns and apply for PAN card; cap on cash transaction lowered to Rs 2 lakh

The government decided on Tuesday to lower the legal limit on cash transaction from Rs 3 lakh to Rs 2 lakh, and make Aadhaar number mandatory for filing income tax returns and applying for a PAN card.

The decisions were part of amendments moved to the finance bill, which puts into effect the Budget proposals.

The Budget 2017 had proposed cash transactions of more than Rs 3 lakh value be banned but the finance bill tabled on Tuesday lowers the ceiling, said revenue secretary, Hasmukh Adhia.

“The difference between demonetisation and this is that the former is used to destroy the stock of black money while the ban will prevent the future flow of black money. This limit will also reduce the quantum of cash transactions in the economy” Adhia had told HT.

To ensure a deterrent, the penalty for violation is equivalent to the amount transacted.

The amendments also make Aadhaar must for tax returns and PAN applications beginning July 1. Aadhaar enrolment number while filing ITR could also be accepted. Failing to declare Aadhaar may lead to PAN being deemed invalid.

The move is likely to roil activists who say the Aadhaar programme – the enrolment to a national database with biometric information such as fingerprints and iris scans – is meant to be voluntary, as declared by the SC in September last year.

“Aadhaar has been optional for ITR for a few years. The challenge will be for foreign nationals who pay taxes in India. We will have to see the amendment to understand its implications,” said Kuldip Kumar, leader, personal tax at PwC India. The amendment, however, says the government will specify exemptions for mandatory Aadhaar rule.

The finance bill carries an unprecedented 40 amendments, according to PTI, and will also impact other laws such as RBI act and representation of people act. Political parties hit out at the tweaks, saying they were being done as ‘backdoor entry’.

The finance bill is classified as a money bill, which does not require bicameral approval and can be approved by the Lok Sabha alone where Prime Minister Narendra Modi’s BJP has a majority.

The limit on cash transactions is in keeping with recommendations of the Special Investigation Team (SIT) on black money.

In addition to this limit, the Income Tax Act prohibits making or accepting payment of an advance of Rs 20,000 or more in cash for purchase of immovable property. PAN is also mandatory for any purchase of above Rs 1 lakh.

Source: Hindustan Times

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