(a)

in sub-rule (2),-

(A)		after the words, letters and figure “Form No. ITR-6” the words, letters and figure “or Form No. ITR-7” shall be inserted;
(B)		for the proviso, the following proviso shall be substituted, namely:—

		“Provided that where an assessee is required to furnish a report of audit specified under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, clause (b) of sub-section (1) of section 12A, section 44AB, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section 80LA, section 92E or section 115JB of the Act, he shall furnish the same electronically.”;
(b)		in sub-rule (3),-

(A)		in the proviso, for clause (aab), the following clause shall be substituted, namely:-
		“(aab) a person claiming any relief of tax under section 90 or 90A or deduction of tax under section 91 of the Act, other than a person to whom clause (aaa) or clause (ab) is applicable, shall furnish the return for assessment year 2013-14 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);”.
(B)		after the proviso, the following proviso shall be inserted, namely:-
		“Provided further that a person who is required to furnish any report of audit referred to in proviso to sub-rule (2) electronically, other than a person to whom clause (aaa) or clause (ab) of the first proviso is applicable, shall furnish the return, in Form as applicable to him, in the manner specified in clause (ii) or clause (iii).”. Note:  (ii)   furnishing the return electronically under digital signature; (iii)   transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V17;

[(a)

in the case of a person being an individual where the total income includes income chargeable to income-tax, under the head,—

(i)		“Salaries” or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or
(ii)		“Income from house property”, where assessee does not own more than one house property and does not have any brought forward loss under the head; or
(iii)		“Income from other sources“, except winnings from lottery or income from race horses, [and does not have any loss under the head]

		be in Form [SAHAJ] (ITR-1) and be verified in the manner indicated therein:]
		[Provided that the provisions of this clause shall not apply to a person who,—

(I)

is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 and has,—

(i)		assets (including financial interest in any entity) located outside India; or
(ii)		signing authority in any account located outside India;

(II)		has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91; or
(III)		has income not chargeable to tax, exceeding five thousand rupees. ]

(b)		in the case of a person being an individual [not being an individual to whom clause (a) applies] or a Hindu undivided family where the total income does not include any income chargeable to income-tax under the head “Profits or gains of business or profession”, be in Form No. ITR-2 and be verified in the manner indicated therein;
(c)		in the case of a person being an individual or a Hindu undivided family who is a partner in a firm and where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm, be in Form No. ITR-3 and be verified in the manner indicated therein;
[ (ca)		in the case of a person being an individual or a Hindu undivided family deriving business income and such income is computed in accordance with special provisions referred to in section 44AD and section 44AE of the Act for computation of business income, be in Form SUGAM (ITR-4S) and be verified in the manner indicated therein: ]
		[Provided that the provisions of this clause shall not apply to a person who,—

(I)

is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 and has,—

(i)		assets (including financial interest in any entity) located outside India; or
(ii)		signing authority in any account located outside India;

(II)		has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91; or
(III)		has income not chargeable to tax, exceeding five thousand rupees. ]

(d)		in the case of a person being an individual or a Hindu undivided family other than the individual or Hindu undivided family referred to in clause (a) or clause (b) or clause (c) 12[or clause (ca)] and deriving income from a proprietory business or profession, be in Form No. ITR-4 and be verified in the manner indicated therein;
(e)		in the case of a person not being an individual or a Hindu undivided family or a company or a person to which clause (g) applies, be in Form No. ITR-5 and be verified in the manner indicated therein;
(f)		in the case of a company not being a company to which clause (g) applies, be in Form No. ITR-6 and be verified in the manner indicated therein;
(g)		in the case of a person including a company whether or not registered under section 25 of the Companies Act, 1956 (1 of 1956), required to file a return under sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) of section 139, be in Form No. ITR-7 and be verified in the manner indicated therein;
(h)		[***]

(i)		furnishing the return in a paper form;
(ii)		furnishing the return electronically under digital signature;
(iii)		transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;
(iv)		furnishing a bar-coded return in a paper form:

[ (a)		[ a person, other than a company and a person required to furnish the return in Form ITR-7 ] if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds five lakh rupees], shall furnish the return for the assessment year [2013-14] and subsequent assessment years in the manner specified in clause (ii) or clause (iii);
(aa)		an individual or a Hindu undivided family, being a resident,  [ other than not ordinarily resident in India within the meaning of sub-section (6) of section 6 ] having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4, as the case may be, shall furnish the return for assessment year 2012-13 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);]
[  [ (aaa)]		a firm required to furnish the return in Form ITR-5 or an individual or Hindu Undivided Family (HUF) required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable, shall furnish the return for assessment year 2011-12 and subsequent assessment years in the manner specified in clause (ii);]
		[ (aab) a person claiming any relief of tax under section 90 or 90A or deduction of tax under section 91 of the Act, other than a person to whom clause (aaa) or clause (ab) is applicable, shall furnish the return for assessment year 2013-14 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);]
		[ Provided further that a person who is required to furnish any report of audit referred to in proviso to sub-rule (2) electronically, other than a person to whom clause (aaa) or clause (ab) of the first proviso is applicable, shall furnish the return, in Form as applicable to him, in the manner specified in clause (ii) or clause (iii). ]
[(ab)		a company required to furnish the return in Form ITR-6 shall furnish the return for assessment year 2010-11 and subsequent assessment years in the manner specified in clause (ii);]
(b)		a person required to furnish the return in Form ITR-7 shall furnish the return in the manner specified in clause (i) [or clause (ii) or clause (iii) :].

(a)		after rule 21AB, the following rule shall be inserted, namely:-
		“Furnishing of authorisation and maintenance of documents etc. for the purposes of section 94A.
		21AC. (1) For the purposes of clause (a) of sub-section (3) of section 94A, the authorisation to be submitted by the assessee, shall be in Form No. 10FC.
		(2) The assessee shall cause the first copy of the duly filled Form No. 10FC to be deposited with or transmitted to the financial institution referred to in clause (a) of sub-section (3) of section 94A.
		(3) The second copy of the Form No. 10FC along with the evidence of the first copy of said Form having been deposited or transmitted to the financial institution shall be submitted by the assessee to the Assessing Officer having jurisdiction over him.
		For the purpose of ensuring that the authorisation in Form No. 10FC is legally enforceable, the assessee shall take all necessary steps as are required under any law for the time being in force in India or outside India.
		(5) For the purposes of clause (b) of sub-section (3) of section 94A, the assessee who has entered into a transaction with a person located in a notified jurisdictional area (hereinafter referred to as the specified person) shall, in addition to information and documents referred to in sub-rule (1) of rule 10D, keep and maintain the following information and documents, namely:—

(a)		a description of the ownership structure of the specified person, including name and address of individuals or other entities, whether located in the notified jurisdictional area or outside, having directly or indirectly more than ten per cent, shareholding or ownership interests;
(b)		a profile of the multinational group of which the specified person is a part along with the name, address, legal status and country of tax residence of each of the enterprises comprised in the group with whom the assessee has entered into a transaction, and ownership linkage among them;
(c)		a broad description of the business of the specified person and the industry it operates in;
(d)		any other information, data or document, which may be relevant for the transaction with the specified person.

		(6) The information and documents specified in sub-rule (5) shall be for the period upto the due date of filing of return of income under sub-section (1) of section 139.
		(7) The information and documents specified in sub-rule (5) shall be kept and maintained for a period of eight years from the end of the relevant assessment year.”;

(b)

In the principal rules, in Appendix-II, after Form No. 10FB, the following Form shall be inserted, namely:-

(a)		documents identifying the account holder, the beneficial owner and/or authorised persons;
(b)		account opening documents;
(c)		correspondence between the bank and the customer or beneficial owner or third parties in relation to the account;
(d)		account statements and statements of assets.

	Place _____________	____________________
		Signature
	Date  _____________	____________________
		Designation
		____________________
		Address
		____________________
		Permanent Account Number

1.		*delete whichever is not applicable.
2.		#(Here give name of the company, firm etc. which is the beneficial owner of the account maintained with the financial institution.”.

New changes in tax return forms for the A/Y 2013-14(N/ NO. 34/2013 [F.NO.142/5/2013-TPL]/SO 1111(E), DATED 1-5-2013)

Existing Position	Position as amended by the Lok Sabha
Scope of Sec. 10(48) widened to include other prescribed income also and not just income arising from sale of crude oil
The Finance Act 2012 inserted a new clause (48) in Section 10 to provide for exemption in respect of any income received in India in Indian currency by a foreign company on account of sale of crude oil in any period in India, if a few conditions are satisfied.		The Finance Bill, 2013 as passed by the Lok Sabha (herein after referred to as ‘the Finance Bill, 2013’) enlarges the scope of Section 10(48). With effect from the assessment year 2014-15, the exemption will also be available in respect of income arising on account of sale of any other goods or rendering of services as notified by the Central Government.
Trading in commodity derivatives no more a speculative transaction
Proviso to Section 43(5) provides a list of transactions which shall not be deemed to be ‘speculative’ transactions.		A new clause (e) is inserted in proviso to Section 43(5) wef assessment year 2014-15 to provide that trading in commodity derivatives carried out in a recognised association shall not be treated as ‘speculative’ transaction. For this purpose, an eligible transaction means: (a)  Any transaction carried out electronically on screen-based system through a member registered for trading in commodity derivatives under the FCRA; (b)  Transaction is supported by a time stamped note issued by such member; (c)  The contract note should indicate unique client identity number, unique trade number and PAN.
TRC – Can be a conclusive evidence but has to be supported by prescribed documents
(1)  The Finance Act, 2012 imposed a mandatory condition to furnish Tax Residency Certificate (‘TRC’) for availing of benefits under the DTAAs. The TRC helps in establishing the country of residence of a non-resident taxpayer. (2)  However, the Finance Bill, 2013 had amended section 90 to provide that submission of TRC was a necessary but not a sufficient condition for claiming benefits under DTAA. This amendment was proposed to be introduced retrospectively wef AY 2013-14. (3)  This proposed amendments raised apprehensions among the taxpayers that it would give powers to the tax collectors to disregard the TRC and view the transaction independently.	Considering these apprehensions of the taxpayers, the provision proposed by the Finance Bill, 2013 that TRC was a necessary but not a sufficient condition for claiming benefit under DTAA has been removed. As per the amended version, apart from the submission of a TRC (which is a necessary condition), the assessee shall also provide such other documents and information as may be prescribed for claiming benefits under the DTAAs.
Time-limit for completion of an assessment when reference is made to the TPO
Sections 153 and 153B, inter-alia, provide the time-limit for completion of an assessment and re-assessment. These time-limits get extended if a reference is made under Section 92CA to the TPO. These time-limits were extended by Finance Act, 2012 by 3 months wef July 1, 2012.	The Finance Bill, 2013 provides that the revised time-limit will be applicable regardless of the fact whether: (a)  A reference to TPO is made before, on or after July 1, 2012; or (b)  The order of TPO is passed before, on or after July 1, 2012.
TAN not required to deduct tax from payment made for purchasing an immovable property
A new section 194-IA is inserted by the Finance Bill, 2013 to provide that transferee is liable to deduct tax at source at 1% from payment being made to a resident-transferor in respect of purchase of an immovable property.	The Finance Bill, 2013 approved of the provisions of Section 194-IA. However, it provided an exemption to the transferee from obtaining a TAN, which is otherwise a mandatory requirement for deduction of tax at source.
Concessional withholding rates on certain rupee denominated long-term infrastructure bonds is withdrawn
The Finance Bill, 2013 proposed to introduce a provision wherein even Indian Rupee loan given by non-resident through the route of Long-term Infrastructure Bonds would also enjoy the concessional rate of tax deduction at source.	This amendment has been withdrawn in the Finance Bill, 2013. However, a new provision is inserted in Section 194LD which provides as under: (1)  Tax under this section shall be deducted in respect of interest on a rupee denominated bond of an India company or Government security which is payable after May 31, 2013 but before June 1, 2015; (2)  Tax at concessional rate shall be deducted if payment is made to a FII or a qualified foreign investor; (3)  Tax to be deducted at 5%; (4)  If tax is deducted under Sec. 194LD, provisions of Sections 195 and 196D will not be applicable.
Non-resident referred to in Section 194LC will not be penalised for not having a PAN
By virtue of Section 206AA, if PAN of the recipient is not available, tax is deductible either at the normal rate or at the rate of 20%, whichever is higher.	Under the amended provisions of Section 206AA, in respect of payment of interest on long-term infrastructure bonds to a non-resident (as referred to in Section 194LC), tax will be deducted at the normal rate of 5%, even if the non-resident-recipient does not have PAN.
Even gold coins weighing less than 10 gms will be subject to TCS
Sale of bullion/jewellery is subject to TCS provisions in following cases: (1)  If the sale consideration of bullion (excluding any coin/article weighing 10 grams or less) exceeds Rs. 2,00,000; or (2)  If the sale consideration of jewellery exceeds Rs. 5,00,000 and out of sale consideration any amount is received in cash.	With effect from June 1, 2013, consideration of any coin or any other article weighing 10 grams or less shall not be excluded while calculating the monetary limit of Rs. 2,00,000.
No wealth-tax on agriculture land
The urban land is not chargeable to wealth-tax if it is a land: (1)  On which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated; or (2)  occupied by any building which has been constructed with the approval of the appropriate authority; or (3)  being an unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him; or (4)  held by the assessee as stock-in-trade for a period of 10 years from the date of its acquisition by him.	Land classified as agricultural land in the records of the Government and used for agricultural purposes, will not be treated as an ‘asset’ under Section 2(ea) with retrospective effect from the AY 1993-94. Consequently, such land will not be chargeable to wealth-tax, even if such land is situated in an urban area. As per the amended provision, following lands will not be chargeable to wealth-tax: (1) Land classified as agricultural land in the records of the Government and used for agricultural purposes; or (2) Land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated; or (3) Land occupied by any building which has been constructed with the approval of the appropriate authority; or (4) An unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him; or (5) Land held by the assessee as stock-in-trade for a period of 10 years from the date of its acquisition by him.

Name of the case	Name of the Assessing Officer/ Addl. CIT/CIT	Assessment completed under section-(143(3)/144/147/153A/153C)	Selection criteria (CASS /Compulsory Manual Scrutiny /Discretionary Manual Scrutiny)	Brief description or the significant issues identified in the assessment on the basis of which the case has been characterized as quality work	Amount of concealment detected/disallowance made	Whether Penalty Imposed /prosecution launched (the relevant section should be mentioned)	Comment of CCsIT/ DGsIT on Quality of order

(a)		The compilation should not include the cases of PSU, Government organisations and the cases with a history of addition/disallowances being consistently made and contested in appeals in the past years. In such cases only those issues should be reported which have been detected for the first time during the year.
(b)		Before reporting such cases in compilation, due care must be taken that the issues have been properly thrashed and it is not a case where the Assessing Officer has resorted to summary additions, routine disallowances or best judgment assessment without any worth while independent inquiry. Reporting of such cases would be viewed adversely.
(c)		The cases where addition has been made due to Transfer Pricing Adjustment on the basis of TPO report should not be included.
(d)		The Central Charges are requested to incorporate those cases where the Assessing Officer, while framing assessments in search and seizure cases, have been able to establish tax evasion and made independent detailed investigation traversing beyond the indicated facts in Appraisal report of the investigation unit. The assessments in any other cases which reflect the work done by the Assessing Officers on the basis of their independent investigations can also be included if it amounts to quality work.

Budget 2013: important things for the middle class

1) You can look forward to more tax-free bonds in the coming days, as some institutions are expected to raise around Rs 25,000 crore via tax-free bonds in 2012-13. The finance minister has also permitted some institutions to issue tax free bonds in 2013-14 up to Rs 50,000 crore.

2) The hike in income threshold to invest in Rajiv Gandhi Equity Saving Scheme ( RGESS) is good news for new investors to the stock market. Now, those with income of up to Rs 12 lakh can invest in (RGESS). Earlier only those with income of Rs 10 lakh and less could invest in the scheme.

3) If you are taking a housing loan of less than Rs 25 lakh this year, you can claim additional tax break of Rs 1 lakh on interest payment. This is in addition to Rs 1.5 lakh permitted currently.

4) If you have been worried about inflation eating into your long term savings, you should wait for inflation indexed bonds and inflation indexed national security certificates. The details of these instruments will be announced shortly.

5) If you are living in a tier II city and find it difficult to find an insurer near your place, the budget has some good news for you. Insurance companies can open officers in tier II cities without prior permission from Insurance Regulatory and Development Authority.

6) Union Budget 2013-14 has raised the eligibility cap on life insurance premiums to 15% for policyholders with disabilities or specified ailments, noting that some policies meant for such individuals exceed the existing limit of 10%. If policies do not meet the eligibility criterion, the amount of deduction allowed will be restricted to 10% (15% in case of persons with disabilities) of the sum assured and the maturity proceeds will be taxed.

7) The finance minister has announced a tax credit of Rs 2,000 for individuals with income of less than Rs 5 lakh. In simple terms, if your tax payable amounts to Rs 10,000, your liability will be limited to Rs 8,000.

8) Securities transaction tax is reduced. STT on mutual fund (MF) and exchange traded fund (ETF) redemptions at fund counters is slashed to 0.001% from 0.25%; STT on MF/ETF purchase and sale on exchanges is reduced from 0.1% to 0.001%, only on the seller.

9) If you are derivative trader in the equities market, you should be happy as STT on futures has come down 0.017% to 0.01 % and if you are derivative trader in commodities market, you have to pay CTT at the same rate applicable to equity futures. There was no CTT earlier.

10) If you are going abroad, here is some good news for you. Duty-free shopping limit is hiked to Rs 50,000 for a male passenger and Rs 1 lakh for a female passenger.

11) Mobile phone prices to go up; the excise duty is hiked to 6% on handsets which costs more than Rs 2,000

12) If you are a service tax evader, you should make use of the new voluntary Compliance Encouragement Scheme announced in the budget. You can file a declaration of service tax due since 1.10.2007 and make the payment in one two instalments before prescribed dates. You don’t have to pay interest and penalty and other consequences will be waived.


(1 MAR, 2013, 01.44AM IST, ET BUREAU)