Month: Jul 2016

Ease of Doing Business – Paperless PAN & TAN application process

Posted on by Business So Simple in Miscellaneous

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 22nd July, 2016.
Sub :- Ease of Doing Business – Paperless PAN & TAN application process.
For fast tracking the allotment of PAN and TAN to company applicants, Digital Signature Certificate(DSC) based application procedure has been introduced on the portals of PAN service providers M/s NSDL eGov and M/s UTIITSL. Under the new process PAN and TAN will be allotted within one day after completion of valid on-line application.
Similarly, a new Aadhaar e-Signature based application process for Individual PAN applicants has been made available on the portals of PAN service providers M/s NSDL eGov.
The URL links for the above applications are available in ‘important links’ on the homepage of the departmental website ‘incometaxindia.gov.in’.
Introduction of Aadhaar based e-Signature through M/s NSDL eGov in PAN application not only ensures paperless hassle free PAN application process but also seeding of Aadhaar in PAN which will curb the problem of duplicate PAN to a great extent.
(Meenakshi J. Goswami)
Commissioner of Income Tax
(Media and Technical Policy)
Official Spokesperson, CBDT.

Posted on by Business So Simple in Miscellaneous
Press Information Bureau
Government of India
Ministry of Finance
Recommendations of SIT on Black Money as Contained in the Fifth SIT Report
14-July-2016

The Fifth SIT report has been submitted before the Hon’ble Supreme Court by the SIT. An extract of the report has been uploaded on Department of Revenue website http://www.dor.gov.in.


The SIT has made the following recommendations in the Fifth Report:

Cash transactions : The SIT has felt that large amount of unaccounted wealth is stored and used in form of cash. Having considered the provisions which exist in this regard in various countries and also having considered various reports and observations of courts regarding cash transactions the SIT felt that there is a need to put an upper limit to cash transactions. Thus, the SIT has recommended that there should be a total ban on cash transactions above Rs. 3,00,000 and an Act be framed to declare such transactions as illegal and punishable under law.


Cash holding : The SIT has further felt that, given the fact of unaccounted wealth being held in cash which are further confirmed by huge cash recoveries in numerous enforcement actions by law enforcement agencies from time to time, the above limit of cash transaction can only succeed if there is a limitation on cash holding, as suggested in its previous reports. SIT has suggested an upper limit of Rs. 15 lakhs on cash holding. Further, stating that in case any person or industry requires holding more cash, it may obtain necessary permission from the Commissioner of Income tax of the area.


Suggestions are invited on the above recommendations of SIT at sit_suggestions@nic.in

Compulsory manual selection of cases for scrutiny during the Financial Year 2016-2017

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Instruction No. 4/2016
Government of India
Ministry of Finance
Department of Revenue (CBDT)
North-Block, New Delhi
Date: 13th of July, 2016
To
All Pr. Chief-Commissioners of Income-tax/Chief-Commissioners of Income-tax
All Pr. Directors-General of Income-tax/Directors-General of Income-tax
Sir/Madam
Subject: Compulsory manual selection of cases for scrutiny during the Financial Year 2016-2017- regd:-
1. In supersession of earlier Instructions on the above subject, the Board hereby lays down the following procedure and criteria for manual selection of returns/cases for compulsory scrutiny during the financial-year 2016-2017:-
(i) Cases involving addition on a substantial and recurring question of law or fact in earlier assessment year(s), in excess of Rs. 25 lakhs in metro charges at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, while for other charges, quantum of such addition should exceed Rs. 10 lakhs (for transfer pricing cases, quantum of such addition should exceed Rs. 10 crore) and where:
a. such an addition in assessment has become final as no further appeal was/has been filed; or
b. such an addition has been confirmed at any stage of appellate process in favour of revenue and assessee has not filed further appeal; or
c. such an addition has been confirmed at 1st appeal stage in favour of revenue or subsequently and further appeal of assessee is pending before any Authority in the appellate process.
(ii) All assessments pertaining to Survey under section 133A of the Act excluding those cases where books of accounts, documents etc. were not impounded and returned income (excluding any disclosure made during the Survey) is not less than returned income of preceding assessment year. However, where assessee retracts the disclosure made during the Survey, such cases will not be covered by this exclusion.
(iii) Assessments in search and seizure cases to be made under section(s) 158B, 158BC, 158BD, 153A & 153C read with section 143(3) of the Act and also for the returns filed for the assessment year relevant to the previous year in which authorization for search and seizure was executed u/s 132 or 132A of the Act.
(iv) Return filed in response to notice under section 148 of the Act.
(v) Cases where registration u/s 12AA of the IT Act has not been granted or has been cancelled by the CIT/DIT concerned, yet the assessee has been found to be claiming tax-exemption under section 11 of the Act. However, where such orders of the CIT/DIT have been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.
(vi) Cases of entities, being ‘scientific research association’ or ‘university, college or other institution’, having approval under section(s) 35(1)(ii)/35(1)(iii) of the Act.
(vii) Cases in respect of which specific and verifiable information pointing out tax-evasion is given by any Government Department/Authority. However, before selecting a case for scrutiny under this criterion, Assessing Officer shall be required to take prior administrative approval from the concerned jurisdictional Pr. CIT/Pr.DIT/CIT.
2. Computer Aided Scrutiny Selection (CASS): Cases are also being selected under CASS-2016 on the basis of broad based selection filters. List of such cases has been/is being separately intimated by the Pr.DGIT(Systems) to the jurisdictional authorities concerned.
3. As a taxpayer friendly measure, to reduce the departmental interface with the assessee and reduce the compliance burden of tax payers in scrutiny assessment proceedings, the scheme of Assessment through e-mail is being extended to all scrutiny cases including the cases selected under above parameters in seven cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai. However, assessees in these seven cities can exercise the option of not being scrutinized under the e-mail based paperless assessment proceedings after informing the Assessing Officer concerned in writing in the beginning or subsequently during the course of assessment proceedings. Further, in cases which require submission of voluminous documents and it is not practicable to submit the scanned copies thereof through e-mail, in such instances; the Assessing Officer may decide to receive such documents in physical form after recording reasons for the same.
4. It is reiterated that the targets for completion of scrutiny assessments and strategy of framing quality assessments as contained in Central Action Plan document for Financial-Year 2016-2017 have to be complied with and it must be ensured that all scrutiny assessment orders including the cases selected under the manual criterion are completed through the AST system software only. It should be the endeavour of the Assessing Officers and his supervisory authorities to ensure that scrutiny assessment cases are disposed in a well planned manner without dragging the assessment proceedings till the last date of limitation. Further, Pr. CCsIT/CCIT(Central)/Pr. CCIT(International tax)/CCIT(Exemption)/DsGIT should evolve a suitable monitoring mechanism in their respective charges in order to ensure quality of assessments being framed during the financial year. In this regard, by 31st January, 2017, such authorities shall send a report to the respective Zonal Member with a copy to Member (IT) containing details of at least 25 quality assessment orders from their respective charges. It may further be the endeavour that cases selected for publication in ‘Let us Share’ are picked up only from the quality assessments as reported.
5. These instructions may be brought to the notice of all concerned for necessary compliance.
6. Hindi version to follow.
(Rohit Garg)

Deputy-Secretary to the Government of India

Revised format u/s 143(2) of Income Tax Act for scrutiny notices

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CBDT has decided to modify notice under section 143(2) of the Income-tax Act. Now  all scrutiny notices shall be issued in following revised format:
–Limited Scrutiny
-Complete Scrutiny
-Manual Scrutiny

 (F.No. 225/162/2016/ITA ,CBDT , 11th of July, 2016)
Limited Scrutiny
Notice under Section 143(2) of the Income-tax Act, 1961

PAN: ………………………………………………………. Dated:         
To
Sir/Madam
This is for your kind information that the return of income for Assessment Year ………………….filed vide ……………………………………………….  on ……………………  has been selected for Scrutiny. Following issues have been identified for examination:
—————————————-
2. In view of the above, we would  like to give you an opportunity to produce, or cause to be produced, any evidence which:you feel is necessary in support of the said return of income on (date) in the office of the undersigned.
3. Sending a communication to the undersigned in this regard shall also be treated as sufficient compliance in case no evidence is sought to be produced as required in Para 2 above.
4. Specific questionnaire/show-cause notice shall be sent giving you another opportunity in case any adverse view is contemplated.
5. (#)The assessment proceeding in your case is proposed to be conducted through email based communication. The email provided in the said return of income shall be used for communication for this purpose. In case you wish to communicate through any other alternate email, the same may kindly be informed. A brief note regarding benefits of this facility and procedure is enclosed overleaf. In case you do not wish to participate in this taxpayer friendly initiative, you may convey your refusal to the undersigned by the above mentioned date. In case, you wish to opt out from this scheme at any subsequent stage due to any technical difficulties faced by you, the same can be done with prior intimation to the undersigned.
Yours faithfully,
Seal
(Name of the Assessing Officer)
(Designation)
(Telephone No./Fax No.)
(E-mail id.)
Note: (#)Applicable only in case of taxpayers whose Income-tax jurisdiction falls in the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata or Mumbai
Complete Scrutiny
Notice under Section 143(2) of the Income-tax Act, 1961
Sir/Madam
This is for your kind information that the return of income for Assessment Year …………………. filed vide ………………………………………………  on ……………………..  has been selected for Complete Scrutiny.
2. In view of the above, we would like to give you an opportunity to produce, or cause to be produced, any evidence which you feel is necessary in support of the said return of income on (date) in the office of the undersigned.
3. Sending a communication to the undersigned in this regard shall also be treated as sufficient compliance in case no evidence is sought to be produced as required in Para 2 above.
4. Specific questionnaire/ show-cause notice shall be sent giving you another opportunity in case any adverse view is contemplated.
5. (#) The assessment proceeding in your case is proposed to be conducted through email based communication. The email provided in the said return of income shall be used for communication for this purpose. In case you wish to communicate through any other alternate email, the same may kindly be informed. A brief note regarding benefits of this facility and procedure is enclosed overleaf. In case you do not wish to participate in this taxpayer friendly initiative, you may convey your refusal to the undersigned by the above mentioned date. In case, you wish to opt out frorii this scheme at any subsequent stage due to any technical difficulties faced by you, the same can be done with prior intimation to the undersigned.
Yours faithfully,
Seal
(Name of the Assessing Officer)
(Designation)
(Telephone No./Fax No.)
(E-mail id.)
Note:(#) applicable only in case of taxpayers whose Income-tax jurisdiction falls in the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata or Mumbai
Manual Selection
Notice under Section 143(2) of the Income-tax Act, 1961
PAN: ……………………………………………………….. Dated: 
To
Sir/Madam
This is for your kind information that the return of income for Assessment Year ………………….filed vide ……………………………………………….  on ……………………….  has been selected for Scrutiny on the basis of parameter at Para 1(……………. … ) of the Manual Compulsory Guidelines of CBDT issued vide Instruction No. ……………………………. dated………………….
2. In view of the above, we would like to give you an opportunity to produce, or cause to be produced, any evidence which you feel is necessary in support of the said return of income on (date) in the office of the undersigned.
3. Sending a communication to the undersigned in this regard shall also be treated as sufficient compliance in case no evidence is sought to be produced as required in Para 2 above.
4. Specific questionnaire/show-cause notice shall be sent giving you another opportunity in case any adverse view is contemplated.
5. (#) The assessment proceeding in your case is proposed to be conducted through email based communication. The email provided in the said return of income shall be used for communication for this purpose. In case you wish to communicate through any other alternate email, the same may kindly be informed. A brief note regarding benefits of this facility and procedure is enclosed overleaf. In case you do not wish to participate in this taxpayer friendly initiative, you may convey your refusal to the undersigned by the above mentioned date. In case, you wish to opt out from this scheme at any subsequent stage due to any technical difficulties faced by you, the same can be done with prior intimation to the undersigned.
Yours faithfully,
Seal
(Name of the Assessing Officer)
(Designation)
(Telephone No./Fax No.)
(E-mail id.)

Note:(#) applicable only in case of taxpayers whose Income-tax jurisdiction falls in the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata or Mumbai.

Income Computation and Disclosure Standards (ICDS) shall be applicable from A/Y 2017- 18

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Income Computation and Disclosure Standards (ICDS) shall be applicable from 1.4.2016 i.e. previous year 2016-17 (Assessment Year 2017- 18) (Press release dated 06th July 2016, CBDT).


Applicability of Income Computation and Disclosure Standards (ICDS) notified under section 145 (2) of the Income tax Act, 1961.

Vide Notification No. SO 892 (E) dated 31st March, 2015, Central Government notified 10 Income Computation and Disclosure Standards (ICDS). These ICDS are applicable from 1.4.2015 i.e. previous year 2015-16 (Assessment Year 2016-17). Subsequent to notification of the ICDS, a number of representations were received which were examined by an Expert Committee. The Committee has recommended amendments to the notified ICDS and also issuance of clarification in respect of certain points raised by the stakeholders.

The revision of ICDS/issue of clarifications as recommended by the Committee, is under consideration. The revision of the Tax Audit Report is also being made for ensuring the compliance with the provisions of ICDS and for capturing the disclosures mandated by the ICDS.

Some of the tax payers might have filed their return of income and obtained Tax Audit Report without incorporating the compliance with the ICDS and related disclosures in the absence of the revised Tax Audit Report. 

Considering these facts, it has been decided that the ICDS shall be applicable from 1.4.2016 i.e. previous year 2016-17 (Assessment Year 2017- 18). The notification to this effect will be issued shortly.