Last date for opting composition levy would be July 21, 2017

GST – CLARIFICATION ON MIGRATION, NEW REGISTRATION, OPTING FOR COMPENSATION SCHEME AND ISSUE OF BILLS OF SUPPLY

PRESS RELEASE, DATED 8-7-2017

The Rules related to Registration and Composition Scheme have been notified on 19th June, 2017. These Rules have been brought into effect from 22nd June, 2017. The intent of notifying these rules is to start the process of issue of registration certificate, called Goods and Services Tax Identification Number (GSTIN), to taxpayers who have already been issued provisional ID for registration(PID) as well as to the new taxpayers.

Any person who has been granted PID and who opts for composition scheme, should submit an intimation of option in a prescribed form on GSTN on or before 21st July, 2017.

Any persons who has PID may submit the required documents on GSTN for getting the certificate of registration. It is clarified that a period of three months is allowed to complete this procedure i.e. the formalities can be completed on or before 22nd September, 2017. In the interim, they can issue tax invoice using the PID already allotted to them.

A person seeking fresh registration can apply for registration within thirty days from the date on which he becomes liable for registration. They can also opt for composition scheme at the time of filing of registration form.

The applicant for grant of new registration can issue a bill of supply for supplying goods or services during the period from the date of liability to obtain registration till date of issuance of the registration certificate, if he has applied for registration within thirty days from the date he has become liable for registration. On grant of certificate of registration, he can issue revised tax invoices for the supplies made during this period.

Source: Taxmann

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Free Anti-Virus for PC and Mobile - Central Government

Ministry of Electronics and Information Technology (MeitY) launches Cyber Swachhta Kendra – Botnet Cleaning and Malware Analysis Centre

Extending the ‘Swachh Bharat’ campaign to the cyber world, the Minister of Electronics and Information Technology, Shri. Ravi Shankar Prasad, today launched the Cyber Swachhta Kendra–Botnet Cleaning and Malware Analysis Centre for analysis of malware and botnets that affect networks and systems. This is a part of MeitY’s Digital India initiative aimed at creating a secure cyber space by detecting botnet infections in India and to notify, enable cleaning and securing systems of end-users to prevent further infections. The centre is operated by the Indian Computer Emergency Response Team (CERT-In).The Centre aims to enhance coordination between the Government and industry in order to encourage cyber hygiene among all end-users and to create a secure and safe internet ecosystem in India.

Speaking on the occasion, Mr. Ravi Shankar Prasad, Hon’ble Minister of Electronics and Information Technology said, “India is going to take a lead in the digitization process of the world. India today joined the distinguished club of countries that have malware cleaning systems for the use of its citizens. As of now, we have 13 Banks & internet service providers using this facility. With the expanding digital footprint in the country, I see a surge in start-ups in the area of cyber security by the end of the year”

“With the expanding role of Information and Communication technology across sectors and growth in volume of transactions and data exchange via internet, Cyber Security as reiterated by Hon’ble Prime Minister, has emerged as the most critical factor when we move towards Digital India. Combating cyber threats is not something that can be done just by the government or an organisation or an individual alone. It requires a partnership approach. This centre being launched today will work in coordination with the Internet Service Providers and Industry. This Kendra will also enhance awareness among citizens regarding botnet and malware infection along with measures to be taken to secure their devices”, added Shri Ravi Shankar Prasad.

The Hon’ble Minister made the following announcement at the launch of Cyber Swachhta Kendra:

• The National Cyber Coordination Centre to be operational by June 2017
• Sectoral CERTs to be created, that would operate under CERT-In
• CERTs are to be set up in the state level as well
• 10 more STQC (Standardisation Testing and Quality Certification) Testing Facilities to be set up
• Testing fee for any star-up that comes up with a digital technology in the quest of cyber security, to be reduced by 50%

Empower designated Forensic Labs to work as the certified authority to establish cyber crime

The Centre will operate in close co-ordination and collaboration with Internet Service Providers (ISP) and Anti-Virus companies. Whenever an infection is detected, the Centre will send alerts on the infected IP addresses to the Internet Service Providers, who in turn will inform the end-user about the malware and botnet infections on their system. The Centre will also work in close collaboration with the Banks to detect malware infections in their banking network and enable remedial actions. The launch of the Centre will help the Internet service providers and the banks to keep their networks clean and prevent cases of cyber fraud and theft.

Ms. Aruna Sundararajan, Secretary, Ministry of Electronics and Information Technology said, “With the increased penetration of ICT infrastructure in our country, the threat of cyber security has become more serious and visible. Today, the common man is confronted with hacking, spamming, malware and loss of data, yet public awareness about these issues and how to protect themselves is extremely low. There is a need to collaborate and come forth with solutions like the Cyber Swachhta Kendra in order to ensure a safe and secure cyber world for the citizens of India.”

With the growth in digitalization and proliferation of broadband and mobile internet, security of end users’ systems is vital for enhancing their trust in ICT and online transactions. User information from the computer and the mobile devices can be compromised if systems get affected with Bots. Users therefore need to practice a rigid cyber hygiene regimen to prevent malware infections on their systems and to ensure security of their systems through suitable anti-malware tools. The Cyber Swachhta Kendra will provide free tools for detection and removal of malicious programmes. More than 3500 users have currently downloaded and tried the free bot removal tools till date. The end-user can log on to the Cyber Swachhta Kendra Portal (www.cyberswachhtakendra.gov.in) and clean their systems using the free cleaning tools. Users can also educate themselves about the various cyber threats and get information on the security tips in order to secure their computers, mobiles and prevent infections in their systems.

Given below are details of some of the tools released for citizens:

• USB Pratirodh -A desktop security solution, which protects from USB mass storage device threats.
• AppSamvid – A desktop solution which protects systems by allowing installation of genuine applications through white listing. This helps in preventing threats from malicious applications.
• M-Kavach – An indigenously developed solution to address the security threats in mobiles.

For downloading the free bot & malware removal tools, please visit:  (www.cyberswachhtakendra.gov.in)

Source: PIB News

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No Advance Tax No Credit of TDS under PMGKY - CBDT FAQs

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 18th January, 2017.

PRESS RELEASE

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 (PMGKY) has commenced on 17th December, 2016 and is open for declarations up to 31st March, 2017.

CBDT has received queries from stakeholders seeking clarifications about various provisions of the Scheme. The issues raised have been examined and a set of twelve FAQs has been issued on 18.01.2017 vide Circular No.2 of 2017. The Circular inter alia provides

 clarifications on issues such as the deposits eligible for being declared under the Scheme, eligibility for making a declaration under the Scheme, adjustment of seized cash against the payment of tax,surcharge and penalty under the Scheme etc.

The Circular has been uploaded on the official website of the Income-tax Department www.incometaxindia.gov.in for viewing.

(Dr. Binod Kumar Sinha)

Commissioner of Income Tax

(Media & Technical Policy)

& Official Spokesperson, CBDT

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Explanatory Notes Releases by CBDT on Provisions of PM-GKY

Circular No.43 of 2016

F.No. 142/33/2016-TPL

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

(TPL Division)

***

Dated: 27th December,2016

EXPLANATORY NOTES ON PROVISIONS OF THE TAXATION AND INVESTMENT REGIME FOR PRADHAN MANTRI GARIB KALYAN YOJANA, 2016 AS CONTAINED IN CHAPTER IX-A OF THE FINANCE ACT, 2016

Introduction

1. The Taxation Laws (Second Amendment) Act, 2016 has been enacted by Parliament on 15.12.2016. The said Act has inter alia amended the provisions of Finance Act, 2016 and inserted a new Chapter on, ‘The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (hereinafter ‘the Scheme’) in the Finance Act, 2016.

2. The Scheme provides an opportunity to persons having undisclosed income in the form of cash or deposit in an account maintained with a specified entity (which includes banks, post office etc.) to declare such income and pay tax, surcharge and penalty totaling in all to 49.9 per cent. of such declared income. Besides, the Scheme provides that a mandatory deposit of not less than 25% of such income shall be made in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016(hereinafter ‘the PMGKY Deposit Scheme’) which has separately been notified by the Department of Economic Affairs. The Scheme has commenced on 17.12.2016 and shall remain open for declarations/deposit upto 31.03.2017.

Scope of the Scheme

3. A declaration under the aforesaid Scheme may be made in respect of any income in the form of cash or deposit in an account maintained by the person with a specified entity, chargeable to tax under the Income-tax Act for any assessment year commencing on or before the 1st day of April, 2017. No deduction in respect of any expenditure or allowance 2 or set-off of any loss shall be allowed against the income in respect of which a valid declaration is made under the Scheme.

Tax, surcharge, penalty & deposit under the Scheme

4. The person making a declaration under the Scheme would be liable to pay tax at the rate of thirty per cent. of the undisclosed income as increased by surcharge to be called the Pradhan Mantri Garib Kalyan Cess calculated at the rate of thirty-three per cent. of such tax. In addition, penalty at the rate of ten per cent. of the undisclosed income shall be payable.

The declarant shall also be required to deposit an amount not less than twenty-five per cent. of the undisclosed income in the PMGKY Deposit Scheme. The deposit shall bear no interest and the amount deposited shall have a lock-in period of four years.

Time limits for declaration and making payment

5. A declaration under the Scheme can be made anytime on or after 17th December, 2016 but on or before 31st March, 2017. The tax, surcharge and penalty payable under the Scheme and deposit to be made in the Deposit Scheme, shall be paid/made before filing of declaration under the Scheme. The declaration shall be accompanied with proof of payment made in respect of tax, surcharge and penalty payable under the Scheme and proof of deposit made in the PMGKY Deposit Scheme.

Form for declaration

6. A declaration under the Scheme in Form-1 as prescribed in the Rules may be made at any time on or before 31.03.2017. After such declaration has been furnished, the notified Principal CIT/ CIT will issue an acknowledgment in Form-2 to the declarant within 30 days from the end of the month in which the declaration under Form-1 is made.

Filing of declaration

7. A declaration under the Scheme can be filed:

(i) Electronically under digital signature with CIT(CPC) Bengaluru or jurisdictional Principal CIT/CIT notified under section 120 of the Income-tax Act, 1961.

(ii) Electronically through Electronic Verification Code (EVC) or in print form with jurisdictional Principal CIT /CIT notified under section 120 of the Income-tax Act, 1961.

Declaration not eligible in certain cases

8. The provisions of this Scheme shall not apply—

(a) in relation to any person in respect of whom an order of detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 subject to the conditions specified under the Scheme.

(b) in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami Property Transactions Act, 1988 and the Prevention of MoneyLaundering Act, 2002;

(c) to any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992;

(d) in relation to any undisclosed foreign income and asset which is chargeable to tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Circumstances where declaration shall be invalid

9. A declaration shall be void and shall be deemed never to have been made where a declaration has been made by misrepresentation or suppression of facts or without payment of tax and surcharge or penalty or without depositing the requisite amount in the PMGKY Deposit Scheme, and in such cases all the provisions of the Income-tax Act, including penalties and prosecutions, shall apply accordingly.

Tax, etc., not refundable

10. Any tax, surcharge or penalty paid under the Scheme shall not be refundable under any  circumstances.

Effect of valid declaration

11. Where a valid declaration as detailed above has been made, the following consequences will follow:

(a) The amount of undisclosed income declared shall not be included in the total income of the declarant under the Income-tax Act for any assessment year;

(b) A declarant under this Scheme shall not be entitled, in respect of undisclosed income or any amount of tax and surcharge paid thereon, to re-open any assessment or reassessment made under the Income-tax Act or the Wealth-tax Act, 1957, or to claim any set-off or relief in any appeal, reference or other proceeding in relation to any such assessment or reassessment

(c) The contents of the declaration shall not be admissible in evidence against the declarant for the purpose of any proceeding under any Act other than the Acts referred in Para- 8 above.

(Dr Thakur Singh 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 Chairperson, 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).
6. CIT (M&TP), CBDT.
7. Web manager for posting on the departmental website.

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Current Rs 500, Rs 1000 currency notes are abolished from 09/11/2016 - PM

Government of India

Ministry of Finance

Department of Economic Affairs

*******

Press Release

With a view to curbing financing of terrorism through the proceeds of Fake Indian Currency Notes (FICN) and use of such funds for subversive activities such as espionage, smuggling of arms, drugs and other contrabands into India, and for eliminating Black Money which casts a long shadow of parallel economy on our real economy, it has been decided to cancel the legal tender character of the High Denomination bank notes of Rs.500 and Rs.1000 denominations issued by RBI till now. This will take effect from the expiry of the 8th November, 2016.

2. Fake Indian Currency Notes (FICN) in circulation in these denominations are comparatively larger as compared to those in other denominations. For a common person, the fake notes look similar to genuine notes. Use of FICN facilitates financing of terrorism and drug trafficking. Use of high denomination notes for storage of unaccounted wealth has been evident from cash recoveries made by law enforcement agencies from time to time. High denomination notes are known to facilitate generation of black money. In this connection, it may be noted that while the total number of bank notes in circulation rose by 40% between 2011 and 2016, the increase in number of notes of Rs.500/- denomination was 76% and for Rs.1,000/- denomination was 109% during this period. New Series bank notes of Rs.500/- and Rs.2,000/- denominations will be introduced for circulation from 10th November, 2016. Infusion of Rs.2,000/- bank notes will be monitored and regulated by RBI. Introduction of new series of banknotes which will be distinctly different from the current ones in terms of look, design, size and colour has been planned.

3. The World Bank in July, 2010 estimated the size of the shadow economy for India at 20.7% of the GDP in 1999 and rising to 23.2% in 2007. There are similar estimates made by other Indian and international agencies. A parallel shadow economy corrodes and eats into the vitals of the country’s economy. It generates inflation which adversely affects the poor and the middle classes more than others. It deprives Government of its legitimate revenues which could have been otherwise used for welfare and development activities.

4. In the last two years, the Government has taken a number of steps to curb the menace of black money in the economy including setting up of a Special Investigation Team (SIT); enacting a law regarding undisclosed foreign income and assets; amending the Double Taxation Avoidance Agreement between India and Mauritius and India and Cyprus; reaching an understanding with Switzerland for getting information on Bank accounts held by Indians with HSBC; encouraging the use of non-cash and digital payments; amending the Benami Transactions Act; and implementing the Income Declaration Scheme 2016.

5. In order to implement the above decisions of the Government and keeping in view the need to minimise inconvenience to the public, the following operational guidelines have been issued:-

(i) Old High Denomination Bank Notes may be deposited by individuals/persons into their bank accounts and/or exchanged in bank branches or Issue Offices of RBI till the close of business hours on 30th December, 2016.

(ii) Old High Denomination Bank Notes of aggregate value of Rs.4,000/- only or below held by a person can be exchanged by him/her at any bank branch or Issue Office of Reserve Bank of India for any denomination of bank notes having legal tender character, provided a Requisition Slip as per format to be specified by RBI is presented with proof of identity and along with the Old High Denomination Bank Notes. Similar facilities will also be made available in Post Offices.

(iii) The limit of Rs.4,000/- for exchanging Old High Denomination Bank Notes at bank branches or at issue offices of Reserve Bank of India will be reviewed after 15 days and appropriate notification issued, as may be necessary.

(iv) There will not be any limit on the quantity or value of Old High Denomination Bank Notes to be credited to the account of the tenderer maintained with the bank, where the Old High Denomination Bank Notes are tendered. However, in accounts where compliance with extant Know Your Customer (KYC) norms is not complete, a maximum value of Rs.50,000/- of Old High Denomination Bank Notes can be deposited.

(v) The equivalent value of the Old High Denomination Bank Notes tendered can be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.

(vi) The equivalent value of the Old High Denomination Bank Notes tendered can be credited to a third party account, provided specific authorisation therefor accorded by the said account holder is presented to the bank, following standard banking procedure and on production of valid proof of Identity of the person actually tendering.

(vii) Cash withdrawal from a bank account, over the counter will be restricted to Rs.10,000/- subject to an overall limit of Rs. 20,000/- in a week for the first fortnight, i.e., until the end of business hours on November 24, 2016.

(viii) There will be no restriction on the use of any non-cash method of operating the account which will include cheques, demand drafts, credit/debit cards, mobile wallets and electronic fund transfer mechanisms.

(ix) Withdrawal from ATMs would be restricted to Rs.2,000 per day per card up to November 18, 2016. The limit will be raised to Rs.4,000 per day per card from November 19, 2016 onwards.

(x) For those who are unable to exchange their Old High Denomination Bank Notes or deposit the same in their bank accounts on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI on later dates along with necessary documentation as may be specified by the Reserve Bank of India.

(xi) Instruction is also being issued for closure of banks and Government Treasuries, on 9th November, 2016.

(xii) In addition, all ATMs, Cash Deposit Machines, Cash Recyclers and any other machine used for receipt and payment of cash will remain shut on 9th and 10th November, 2016.

(xiii) The bank branches and Government Treasuries will function from 10th November, 2016.

(xiv) To avoid inconvenience to the public for the first 72 Hours, Old High Denomination Bank Notes will continue to be accepted at Government Hospitals and pharmacies in these hospitals/Railway ticketing counters/ticket counters of Government/Public Sector Undertaking buses and airline ticketing counters at airports; for purchases at consumer co-operative societies, at milk booths, at crematoria/burial grounds, at petrol/diesel/gas stations of Public Sector Oil Marketing Companies and for arriving and departing passengers at international airports and for foreign tourists to exchange foreign currency at airports up to a specified amount.

6. The relevant Notifications are available in the website of Finance Ministry (http://finmin.nic.in/). Further details including Frequently Asked Questions (FAQs) are available on the website of the Reserve Bank of India (https://www.rbi.org.in/). 

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CBDT issued 2nd Round Appreciation Certificates to Tax Payers for Asstt. Year 2016-17

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

25th October, 2016

Press Release

Sub: CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building.

The Honourable Finance Minister Shri Arun Jaitley, had personally handed over certificates to a few individuals at North Block to commence the program of taxpayer appreciation on 19th September, 2016. The Central Board of Direct Taxes has sent out such certificates of appreciation to 8.43 Lakh individual tax payers by e-mail in the following categories on the basis of the taxes paid by them for the Assessment Year 2016-17 :

i. Platinum : Tax contributed Rs. 1 Crore and above

ii. Gold : Tax contributed Rs. 50 Lakh to Rs. 1 Crore

iii. Silver : Tax contributed Rs. 10 Lakh to Rs.50 Lakh

iv. Bronze : Tax contributed Rs. 1 Lakh to Rs.10 Lakh

Taxpayers have lauded this new initiative and have reacted with pride and satisfaction that their contribution towards spending on various infrastructure development, social sector & welfare schemes out of revenues mobilized through tax payments have been acknowledged.

In continuation of the initiative, CBDT has started issuing the second round of Certificates to another 10.15 Lakh tax payers. While the earlier set of certificates had mostly included individuals who e-verified their returns, the second phase will cover those individuals who have filed their returns within the due date and their ITR-V has been received well before the 120 day period for submission provided under the Income Tax Act.

The CBDT urges taxpayers to e-file their returns in time and verify their return by submitting the Electronic Verification Code online or sending their ITR-V within the 120 day period so that they can also be acknowledged for their contribution. The Department is committed to continuous improvement of taxpayer services and seeks the cooperation of all taxpayers in contributing their fair share of taxes voluntarily.

(Meenakshi Goswami)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

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Latest Updates on Income Declaration Scheme, 2016

The Income Declaration Scheme, 2016 (hereinafter referred to as ‘the Scheme’) came into effect on 1st June, 2016.  This "the Scheme" is recently amended by CBDT i.e. these rules may be called the Income Declaration Scheme, (Third Amendment) Rules, 2016 and Clarifications on the Income Declaration Scheme, 2016.  The CBDT has issued three sets of FAQs vide Circular Nos. 17, 24, 25 & 27 of 2016.

The Highlights from such changes are as under:

• The CBDT has amended the valuation rules to determine fair value of property declared under IDS on basis of stamp duty valuation.
• Where loans, creditors, advances received, share capital, payables etc. are disclosed in the audited balance sheet but are fictitious in nature and cannot be directly linked to acquisition of a particular asset, then such fictitious liabilities can be disclosed under the IDS as such without linking the same with the investment in any specific asset.
• The income declared under the IDS for an earlier assessment year can be taken into account to explain the related transactions of the subsequent assessment years in assessment proceedings pending before the Assessing Officer provided there is a nexus between the two.
• No adverse action shall be taken against the declarant by the income-tax department solely on the basis of cash deposits made in banks consequent to the declaration made under the Scheme.
• The period of holding of immovable property declared under the IDS shall be taken on the basis of its actual date of acquisition and not from 1.6.2016.
• Payment made under the IDS can be made in cash to the banks. Thus, RBI has been requested to issue instructions to banks to allow payment of tax under the IDS in cash.

Click Here to view All about IDS, 2016

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CBDT - Electronic Filing of Appeal before CIT Appeals is being made Mandatory

As per press release published by CBDT Electronic Filing of Appeal before CIT Appeals is Mandatory for persons who are required to file the return of income electronically.  The details of that Press Release are as under :

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

New Delhi, 30th December, 2015

Subject: Electronic filing of first appeal before CIT(Appeals) – reg.

It is the endeavour of the Income tax Department to digitise various functions of the Department for providing efficient taxpayer services. As another significant step in this direction, electronic filing of appeal before CIT(Appeals) is being made mandatory for persons who are required to file the return of income electronically.

Electronic filing of appeal along with the documents relied upon before CIT (Appeals) will remove human interface, reduce paperwork and decrease the transaction cost for the taxpayer. It would ensure consistent and error free service as validations will be inbuilt resulting in fewer deficient appeals. Online filing will also facilitate fixation of hearing of appeals electronically.

The existing Form 35 for filing of first appeal is being substituted by a new Form. The new format for filing of appeals is more structured, objective, systematic, and aligned with the current provisions of the Income-tax Act.

With these changes, the burden of compliance on the taxpayers in appellate proceedings will be significantly reduced.

(Shefali Shah)

Pr. Commissioner of Income Tax (OSD)

Official Spokesperson, CBDT

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Now Income Tax Department Released ITR-1, 2, 2A and 4S for e-filing for Asstt. Year 2015-16 in Java and Excel Utility.

According to Press Release of Central Board of Direct Taxes dated 1st July, 2015 uploading of Income Tax Return Form i.e. ITR-1, 2, 2A and 4S, enable e-filing at www.incometaxindiaefiling.gov.in has been released w.e.f. 1st July, 2015.  The following Press Release read for more information.

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

1st July, 2015

Press Release

Subject: Commencement of Electronic filing of Income Tax Returns for AY 15-16-reg.

The Income Tax Department has released the software for preparing the Income Tax Return forms 1-SAHAJ, 2, 2A and 4S-SUGAM for AY 2015-16. The e-filing of these return forms has been enabled on the e-filing website https://incometaxindiaefiling.gov.in.

ITR 1-SAHAJ, 2 and 2A can be used by an individual or HUF 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.The elaborate details of the persons who can use these forms are available in the instructions for filling the forms.

The facility for pre-filling of information for these return forms is available in the software for preparing the return forms. When the taxpayer exercises this option and just fills in his PAN,then personal information and information on taxes paid and TDS will be auto-filled in the form. Taxpayers are requested to use the return preparation software available free of cost under the ‘Downloads’ section on the home page of the Income Tax Department’s e-filing website https://incometaxindiaefiling.gov.in. The use of Departmental software will ensure preparation of error-free returns thereby avoiding any need for future rectification due to data validation mistakes.

Taxpayers are requested to e-file their returns early to avoid the rush closer to the last date of filing.

(Shefali Shah)

Pr. CIT(OSD),

Official Spokesperson, CBDT

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CBDT Takes Immediate Action against Black Money Cases.

Recently CBDT has issued Press Release to takes prompt action in investigating cases of black money stashed abroad; seeks further info in 600 cases.  The details of press release are as under :

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North Block, New Delhi

Dated: 09th February, 2015

PRESS RELEASE

Information about HSBC foreign bank accounts was received from the French authorities in respect of 628 Indian persons/entities. Out of the said 628 persons, 200 were either non-residents or non- traceable, leaving 428 cases of residents which were found actionable. For these 428 actionable cases the net amount of peak balance was about Rs.4500 crore.

The Government has taken expeditious action in these cases as per law. Up-to 31st December 2014, assessments were completed in 128 cases, involving more than 350 assessments. In the remaining cases assessment proceedings are at advance stage. Undisclosed income of about Rs.3150 crore was brought to tax on account of deposits made in unreported foreign bank accounts.

Out of the above-mentioned 128 cases in which assessments were completed, concealment penalty proceedings u/s 271(1)(c) have been initiated in almost all the cases.

About 60 prosecutions have so far been launched for wilful attempt to evade taxes [S/276C(1)] and failure to furnish accounts and documents etc [S/276D]. Show Cause Notices before launching prosecutions have been issued in a large number of other cases wherein further action is underway.

Today’s media reports carry news item about foreign bank accounts held by 1195 Indians. Top hundred names have been published in a newspaper. Some of these names already figure in the earlier list available with the Government. Necessary investigation as per the provisions of law will be taken up in all the new cases, expeditiously.

Income Tax Department is already in touch with the whistle blower who apparently brought out the names of persons holding undisclosed bank accounts in HSBC, Switzerland. He has been requested to share information available with himin regard to undisclosed bank accounts of Indians in HSBC, Switzerland and other destinations. His response is awaited.

During last 6 months, the Government has taken vigorous and pro-active measures to expedite investigations in the cases of Indians holding undisclosed foreign accounts/assets abroad. Useful contacts have been established with foreign governments who might have some further information in this regard. Based upon credible information of undisclosed foreign bank accounts, fresh references for obtaining further information in more than 600 cases have been made to foreign jurisdictions, under available treaties/agreements. The same are being pursued.

Commissioner of Income Tax

(Media & Technical Co-ordination)

Official Spokesperson

Central Board of Direct Taxes

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Tax Collection Press Release from April-December for Asstt. Year 2015-16

Today, CBDT has issued a press release report on Tax Collection from April-December for Asstt. Year 2015-16 recently on 23rd, January, 2015.  This press release display the total collection of Income Tax including TDS, TCS, Advance Tax etc. from Taxpayee, Tax Deductors and Tax Collectors etc.  The details of this Press Release is as under :

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

***

New Delhi, 23rd January, 2015

PRESS RELEASE

Gross direct tax collection during April-December of the Financial Year 2014-15 is up by 12.93 percent at Rs. 5,46,661 crore as against Rs. 4,84,063 crore collected during the same period last year. Gross collection of Corporate tax has shown an increase of 12.79 percent and stood at Rs. 3,50,494 crore as against Rs. 3,10,754 crore collected during the same period last year. Gross collection of Personal income tax is up by 12.62 percent and stood at Rs.1,90,391 crore as against Rs.1,69,059 crore collected during the same period last year. Securities Transaction Tax(STT) stands at Rs. 4940 crore at a growth of 43.44%. Net direct tax collections are up by 7.41 percent and stand at Rs. 4,48,401 crore, as compared to Rs. 4,17,477 crore in the same period in the last fiscal.

2. Advance tax collection has shown a growth of 13.15% during April-December of the FY 2014-15 as against the growth of 8.76% shown at the same time previous year. Growth in TDS is 7.84% as against 16.73% in the same period last year.

3. The Self-Assessment Tax shows a growth of 22.20% as against 11.86% in the same period last year. The growth in Regular Tax is 33.03% as against 15.60% in the same period last year.

(Rekha Shukla)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

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Revised Draft issued by CBDT on Income Computation and Disclosure Standards.

Today, CBDT has issued a Press Release on Revised Draft of Income Computation and Disclosure Standards (Icds) for the purpose of notification under section 145 (2) of Income Tax Act, 1961 with seeks public comments.  The first draft of Tax Accounting Standards issued in August, 2012 by Income Tax Department.  The revised draft contains changes as sub-section (1) of section 145 of the Income Tax Act, 1961 (‘the Act’) provides that the income chargeable under the head “Profits and gain of business or profession” or “Income from other sources” shall [subject to the provisions of sub-section (2)] be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Sub-section (2) of section 145 provides that the Central Government may notify Income Computation and Disclosure Standards(ICDS) for any class of asssessees or for any class of income.  The Revised Press Release is as under :

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

PRESS RELEASE

9th January, 2015

Subject: Draft of Income Computation and Disclosure Standards (ICDS) for the purpose of notification under section 145(2) of the Income-tax Act, 1961.

Sub- section (1) of section 145 of the Income-tax Act, 1961 (‘the Act’) provides that the income chargeable under the head “Profits and gain of business or profession” or “Income from other sources” shall [subject to the provisions of sub-section (2)] be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Sub-section (2) of section 145 provides that the Central Government may notify Income Computation and Disclosure Standards(ICDS) for any class of asssessees or for any class of income.

2.  The Central Board of Direct Taxes(‘CBDT’) had constituted a Committee comprising departmental officers and professionals in December,2010 to inter alia suggest standards for the purposes of notification under section 145(2) of the Act. The Committee submitted its first interim report in August 2011. The Committee submitted its final report along with the draft of standards in August, 2012 which was placed in public domain for comments.

3.  On the basis of the suggestions received from the stakeholders and examination of the same by the CBDT, the draft standards submitted by the Committee have been revised.

4.  The new draft of 12 Income Computation and Disclosure Standards(ICDS) has been uploaded on the Finance Ministry website (www.finmin.nic.in) and Income-tax Department website(www.incometaxindia.gov.in) for comments from stakeholders and general public. The comments and suggestions on the draft ICDS may be submitted by 8th February, 2015 at the email address (dirtpl3@nic.in or rkbhoot@gmail.com) or by post at the following address with “Comments on draft ICDS” written on the envelope:

Director( Tax Policy & Legislation)-III
Central Board of Direct Taxes,
Room No.147-G,
North Block,
New Delhi-110001

(Rekha Shukla)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT

Download REVISED DRAFT OF INCOME COMPUTATION AND DISCLOSURE STANDARDS (CLICK HERE)

Comments and Suggestions on Revised Draft of Income Computation and Disclosure Standards are solicited .....

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CBDT instruct to Officers to avoid to ask non-related questions regarding assessment without any basis.

CBDT has issued a Press Release regarding asks officers not to make high-pitched assessments without any basis and to file appeals on merits only which is as under :

Government of India 

Ministry of Finance 

Department of Revenue 

Central Board of Direct Taxes 

7thNovember, 2014

PRESS RELEASE

In its constant endeavour towards a non-adversarial tax regime, the Central Board of Direct Taxes(CBDT) has issued instruction dated 7thNovember, 2014 to its field offices. Emphasis has been laid on cleanliness in office, punctuality, timeliness in appointment and avoiding unnecessary adjournments. Though less that 1% of returns filed are selected for scrutiny, this area of work has often drawn adversarial comments. Supervisory officers, have been directed to play a more pro-active role in monitoring and guiding assessments towards ensuring that high-pitched assessments without proper basis are not made and that lengthy questionnaires or summons without due application of mind are avoided. They have been directed to ensure Inspections and Reviews in accordance with guidelines issued to enable capacity building within the Department and accountability of the officers. 

2. In limited scrutiny cases selected on the basis of AIR/CIB/26AS information, the enquiries will ordinarily be restricted to such information. Refunds are to be granted in accordance with instructions already issued which provide for grant of credit of TDS on the basis of evidence submitted by the assessee. Instructions dealing with recovery / stay of demand and grant of instalments has been reiterated to ensure that no coercive action is undertaken without disposal of applications for stay. 

3. Senior officers have been directed to ensure that appeals are filed only on the merits thereof and not merely on the tax effect involved. Cases have separately been brought to the attention of the officers wherein Tribunals / Courts have commented adversely on frivolous filing of appeals. It has also been decided that in multi-CCIT Charges, the decision to file a Reference before the High Court would be taken by two CCsIT. 

4. All supervisory authorities have been directed to enable an effective grievance redressal system in their jurisdictions and also that the timelines prescribed under the Citizen’s Charter, the CPGRAMS, etc. for redressing grievances should be invariably followed. 

(Dr. B.K. Sinha) 

CIT(C&S), CBDT

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CBDT extends due date of filing 2nd Quarter TDS/TCS returns for Asstt. Year 2015-16

CBDT has issued a Press Release on 17th Oct., 2014 to extend due date of filing of TDs/TCS Statements for 2nd Quarter for Fin. Year 2014-15 for specially deductors/collections belonging to states of Andra Pradesh, Jammu & Kashmir, Odisha and Telangana State.

In view of the recent natural calamities in the States of Andhra Pradesh, Jammu & Kashmir, Odisha & Telangana, the Central Board of Direct Taxes has issued an order extending the due date for filing the TDS/TCS Statements for the 2nd Quarter of Financial year 2014-15 by the deductors/collectors in these States.  In case of Government deductors/collectors that are mapped to a valid AIN, the due date is extended from 31st October, 2014 to 7th November, 2014. In case of all other deductors/collectors, the due date is extended from 15th October, 2014 to 31 st October, 2014.

Download Due Date Extended TDS/TCS 2nd Quarter Statement Press Release (Click Here)

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CBDT speeds up refund claims of taxpayers of J&K - Press Release

CBDT has issued a press released on 15thth October, 2014 regarding immediate issue of Income Tax Refund claim to taxpayers of J & K due to devastation caused by floods u/s. 139 of Income Tax Act, 1961.

In view of the large devastation caused by the recent floods in Jammu & Kashmir, the Income tax Department is taking necessary steps to process expeditiously the refund claims of the taxpayers residing in the state of Jammu & Kashmir who have submitted their returns through electronic mode. Instances have come to notice where the refund cheques could not be delivered at the address indicated by the taxpayers in their returns due to dislocation caused by floods.

Non-Corporate taxpayers of Jammu and Kashmir who desire to provide a new address for delivery of their refund cheques, may log in to the e-filing site https://incometaxindiaefiling.gov.in, and update their address through the path Profile Setting -> My Profile-> Address . Alternatively, the taxpayers can contact the helpdesk at Centralised Processing Centre (CPC), Bangalore at 1800 425 2229 and provide the updated address.

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Rs. 10 Lakh Compensation if Government Employee Dies During Election Duty

The Tamil Nadu Election Commission’s Chief Commissioner, Praveen Kumar says that the Election Commission has announced a compensation of Rs. 10 lakhs for employees who die while on election duties.

Normally during state elections, more than 3 lakh state and Central Government employees, including teachers, local police personnel, police personnel from the neighboring states, paramilitary forces and private videographers, participate.

If death occurs in poll-related violence or if the employee dies of cardiac arrest while on election duty, his/her family was, until now, given a compensation of Rs. 5 lakhs. This has been increased to Rs. 10 lakhs from 2014 onwards. Under this scheme, personnel who had died on duty during the May elections will be paid a compensation of Rs. 10 lakhs, says Praveen Kumar.

If the death is unfortunately caused due to any violent acts of extremist or unsocial elements like, road mines, bomb blasts, armed attacks, etc., the amount of compensation would be Rs.20 lakhs. In the case of permanent disability, like loss of limb, eye sight, etc., a minimum ex-gratia payment of Rs.5 lacs would be given to the official (which would be doubled in the case of such mishaps being caused by extremist or unsocial elements as aforesaid).

Source: 7thpaycommissionnews.in

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Income Tax Department, Bangalore becomes ISO-27001:2005 Compliant - CPC

The Press Information Bureau, Government of India hass issed Press relesed regarding Centralized Processing Center (CPC), Income Tax Deparrment - Bengluru Becomes ISO-27001:2005 Compliant which is as under:

Centralized Processing Center (CPC), Bengluru Becomes ISO-27001:2005 Compliant

Centralised Processing Center (CPC) of the Income Tax Department at Bengluru, Karnatka has added one more feather to its cap by becoming ISO 27001 compliant. The ISO-27001 certificate was awarded to CPC by British Standards Institution (BSI).

The ISO- 27001 is an Information Security Management Standard developed by ISO (International Organization for Standardization) aimed at standardizing Information Security management policies and procedures used for managing Information Security aspects of any organization. The standard ensures confidentiality, integrity, and availability of information assets and resources, using standard practices and procedures.

The Income tax Department is fully committed to the objective of safeguarding the confidentiality of taxpayer data and safety of information assets at CPC. The tax administration seeks to achieve the objective by making information security management as an overarching framework at CPC. Compliance to such International Standards of Information Security will give the assurance to taxpayers about the security of financial data in Income Tax returns. The ISO 27001 certification will also garner trust of the most important stakeholder in the program, the taxpayer, and further encourage the taxpayer to engage with the Department through the electronic mode. 

Source : www.pib.nic.in

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Income Tax Authorities constitute a committee for transfer cases w.e.f. 01.04.2012

Income Tax Authorities has published a press released on 02.09.14 u/s. 119 of Income Tax Act, 1961 to constitute a Committee for approval to tax indirect transfer cases for income arising before 01.04.2012, which is as under:

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

New Delhi, the 2nd September, 2014

The Finance Minister in his budget speech on 10th July, 2014 had made an announcement that all fresh cases arising out of the retrospective amendments of 2012 in respect of indirect transfer and coming to the no tice of Assessing officer will be scrutinized by a High Level Committee to be constituted by Central Board of Direct Taxes (CBDT) before any action is initiated in such cases.

2. The CBDT in exercise of powers conferred under section 119 of the Income-tax Act, 1961 has issued an Order No.149/141/2014-TPL dated 28th August, 2014 constituting the High Level Committee consisting of the officers of CBDT. The Committee includes Joint Secretary, (FT&TR-I), Joint Secretary (TPL-I) and Commissioner of Income-tax (ITA). Further, the Director (FT&TR-I) will be the Secretary of the Committee. The Order is available on official website of Income-tax Department at http://incometaxindia.gov.in.

3. Henceforth, in all fresh cases where income on account of retrospective amendments to the provisions related to indirect transfer is considered to accrue or arise before the 1st April, 2012, the Assessing Officer shall be required to seek prior approval of any proposed action in this regard from the Committee. The Committee shall, after provident an opportunity to the taxpayer, issue appropriate directions to the Assessing Officer in a time bound manner. The Committee would be required to submit periodic report to the CBDT. The CBDT may intervene in the working/deliberations of the Committee, as and when required.

(Rekha Shukla)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

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A valid Email ID and Mobile Number to be Registered/Updated on the E-Filing Website of the Income Tax Department

A valid Email ID and Mobile Number has to be registered/updated on the e-filing website of the Income Tax Department so that direct communication with taxpayer can be possible. For details, taxpayers can log on to: https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/Update_Contact_Details.pdf)

The Department will send separate One Time Passwords (OTP) also referred as PIN on the mobile and email provided by the taxpayer. The OTPs have to be entered by the taxpayer after logging into their e-filing account to authenticate the same.  The OTPs will remain valid for 24 hours within which the taxpayer has to complete the process. For ‘Foreign/ NRI’ taxpayers, the OTP validation of the email ID would be sufficient.

Validation of email and mobile numbers has been introduced to facilitate taxpayers as in many cases incorrect emails and mobile numbers have been provided and taxpayers did not receive important communication from the Department. Further, it has been observed that in many cases taxpayers are not able to reset their password since the new temporary password from the Department may be sent to their registered email which may be different from the taxpayer’s personal email, e.g. email of their intermediary.

This is a one-time process to validate the mobile number and email ID. However, whenever the taxpayer changes the Mobile Number or email ID in their Profile, the process will be repeated to ensure that the particulars provided are correct. Further, this validation will ensure that Department can send an OTP for resetting the password used for Login in case the taxpayer has forgotten the password.

One mobile number or email ID can be used for a maximum of 10 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members and related business concerns (not exceeding 10 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department.

The taxpayer can enter any other person’s email or mobile number in addition, as a Secondary Contact (without any restriction on the number of user accounts linked as a Secondary Contact). Using “Profile Settings à My Profile” the taxpayer can select to include the Secondary Contact to also receive emails, alerts etc.

It is advised that the emails and SMS from the Income tax Department may be included in the ‘safe list’ or ‘white list’ to prevent the communications from the Department from being blocked or rejected or sent to Spam folder. Taxpayers are also advised not to share their user-id and password of their e-filing account with others to prevent un-authorized access.Taxpayers can reset their password using the 'Forgot Password?' link while logging in to their e-filing account and by providing the necessary details.

The Department requests the cooperation of all taxpayers for completing this validation process at the earliest for a smooth and convenient return filing process.

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Mandatory One Mobile Number or One Email ID for ITR e-filing Login Account.

Income-Tax Department has issued a Press Release regarding contact details (Mobile number & E-mail ID) for Taxpayee on e-Filing Login Account. It is mandatory that all tax payers must have a valid contact details i.e. one mobile number or one email address registered in e-Filing portal. The Press Released is as under:

Press release

Dated 19.06.14

One mobile number or email ID can be used for a maximum of 4 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members (not exceeding 4 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department. Considering the very low availability of Internet Facility in India especially in villages and smaller cities the move is the one which is not appreciated by tax professionals. Some of the professionals has also demanded that Limit of 4 registrations against a mobile number/email registration must be removed immediately. One more practical difficulty may be in registration of Non-Residents, who do not have mobile facility in India. It is knot known, if they can register with foreign mobile number. One of our reader Mr. Vijay K. Malik said that ” It is not possible for ordinary person like chai walla, paan walla, small shop keepers to have their personal email id. This type of procedural hurdle will create more trouble for tax consultants, they have to create email id for their clients on their names, which seems to be more illegal to crate this type of email id. Income Tax Department has to think from this angle also. “ CA V Swaminathan commented that ” The newly announced procedure for bringing on IT Record the particulars for communication to taxpayers is prima facie cumbersome and spells additional hassle. Further,more importantly, it does not seem to talk about updating of physical ‘address’. As suggested before,in consideration of ‘balance of convenience’ , by having suitable changes made in the department’s computerized system itself, the said address may be updated on the basis of the address/changed address as filled in / reported, in the tax return lastly filed and on its record.” In our opinion government move is with good intentions but been made without considering the ground realities, which needs a reconsideration. 

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