Category Archives: Income Tax

Aadhaar mandatory for Applying PAN – Form 49A revised w.e.f 01.07.2017

Summary ; By following Notification No. 56/2017/F.No. 370142/40/2016-TPL Dated 27.06.2017 , Govt of India has revised Form 49A for applying PAN. Now it is mandatory to refere Aadhaar No or Aadhaar enrollemnt ID to apply for PAN. Further Every person who has been allotted permanent account number as on the 1st day of July, 2017 has… Read More »

Revised format for issue of Notice u/s 143(2) of Income Tax

F.No. 225/157/2017/ITA.II Government of India Ministry of Finance Department of Revenue (CBDT) North Block, New Delhi, dated the 23rd of June, 2017 To All Pr. CCsIT/Pr. CCIT(International-tax)/CCIT(Exemptions)/Pr. DsGIT Sir/Madam Subject: – Issue of notices under section 143(2) of Income-tax Act, 1961 in revised format-regd.- With reference to the above, I am directed to state that… Read More »

e Proceeding / e -Assessement under Income Tax -User Manual

e Proceeding User Manual we are giving e proceeding uer manual for filing reply to Income Tax Notices Abbreviations Following abbreviations are used in following e-Proceeding /E Assessment user manual ITD :  Income Tax Department PAN :Permanent Account Number AO : Assessing Officer Introduction Presently, notice u/s 143(2) is generated by CASS in ITBA. Also, AO… Read More »

3CED Form revised by CBDT for APA – Notification -Download

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 16th June, 2017 INCOME-TAX S.O. 1927(E).—In exercise of the powers conferred by section 295 read with sub-section (9) of section 92CC of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules… Read More »

CBDT Notifies Rule 10CB for Secondary Adjustments under Section 92CE of IT Act, 1961.

CBDT Notifies Rule 10CB for Secondary Adjustments under Section 92CE of IT Act, 1961. Rule 10CB for operationalising the provisions of secondary adjustment has been notified by the Central Board of Direct Taxes on 15th June, 2017. It prescribes the time limit for repatriation of excess money and the rate of interest to be applied… Read More »

Interest & Dividend reporting of Custodial Accounts- Rule 114G(1)(e) of Income Tax Rules, 1962

Securities and Exchange Board of India CIRCULAR CIR/HO/MIRSD/MIRSD2/CIR/P/2017/59 June 15, 2017 To, All Recognized Depositories 2. Depositories Participants (DPs) through Depositories 3. Registrars to an Issue and Share transfer agents (RTAs) Dear Sir/ Madam, Sub: Interest and Dividend information reporting in case of Custodial Accounts- Rule 114G(1)(e) of the Income Tax Rules, 1962 1. This… Read More »

Section 206C(1D) of Income tax Act

Section 206C(1D) of Income tax Act Section 206C(1D) of Income tax Act Omitted / Deleted  by the Finance Act, 2017, w.e.f. 1-4-2017. Prior to its omission, sub-section (1D), as amended by the Finance Act, 2012, w.e.f. 1-7-2012, Finance Act, 2013, w.e.f. 1-6-2013 and Finance Act, 2016, w.e.f. 1-6-2016, read as under : “(1D) Every person, being… Read More »

Aadhaar mandatory for Opening Bank Account & for Transactions Above Rs 50000 , Notification

Aadhaar mandatory for Opening Bank Account The government has made quoting of biometric identity number Aadhaar mandatory for opening of bank accounts as well as for any financial transaction of R 50,000 and above. Existing bank account holders have been asked to furnish the Aadhaar number issued by the Unique Identification Authority of India (UIDAI)… Read More »

Computation of interest income on secondary adjustments : CBDT Notification

Rule 10CB of Income Tax Rules relating to Computation of interest income pursuant to secondary adjustments.Notified by CBDT  – [ Notification No. 52/2017, F.No.370142/12/2017 -TPL ] MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 15th June, 2017 G.S.R. 590(E).— In exercise of the powers conferred by sub-section (2) to… Read More »

Foreign company resident in India u/s 115JH : Draft Notifcation

F No 370142/19/2017-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated 15th June, 2017 Subject: Draft Notification of exception, modification and adaptation in respect of foreign company said to be resident in India under Section 115JH of the Income-tax Act, 1961– comments and suggestions-reg. Finance Act, 2016, inter… Read More »

Adjustment of seized / requisitioned cash against advance tax liability – CBDT Circular

Summary : Several Courts held that on an application made by the assessee, the seized money is to be adjusted against the advance tax liability of the assessee. Subsequently, Explanation 2 to Section 132B of the Act was inserted by the Finance Act, 2013 w.e.f. 01-06-2013, clarifying that “existing liability” does not include advance tax… Read More »

No TDS on Rent on remittance of Passenger Service Fees (PSF) by an Airline to an Airport Operator : CBDT Circular

Circular No. 21/2017 F.No. 279/Misc./140/2015/ITJ Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated 12th June, 2017 SUBJECT: Non-Applicability of the provisions of section 194-I of the I.T. Act, 1961 on remittance of Passenger Service Fees (PSF) by an Airline to an Airport Operator – reg. –  Under… Read More »

Form No 60 declaration in Physical form or E- Form : Notification

Summary : Any person who does not have a permanent account number and who enters into any transaction specified in rule 114B , he shall make a declaration in Form No.60 giving therein the particulars of such transaction  either in paper form or electronically under the electronic verification code in accordance with the procedures, data… Read More »

Transfer Pricing Tolerance Limit for AY 2017-18 & 2018-19 Notified

MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 9th June, 2017 [Income-tax] S.O. 1866(E).—In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C of the Income-tax Act, 1961 (43 of 1961)(hereinafter referred to as the ‘Act’), read with proviso to sub-rule (7) of rule 10CA of the… Read More »

Aadhaar mandatory for filing ITR ? – Supreme Court Judgment

Key Highlights of Supreme Court of India’s Judgement  on  Aadhar PAN Linkage –   (i)     From July 1, 2017 onwards, every person eligible to obtain Aadhaar must quote their Aadhaar number or their Aadhaar Enrolment ID number for filing of Income Tax Returns as well as for applications for PAN; (ii)  Everyone who has been allotted permanent account… Read More »

Form No 16C & 26QC Notified for TDS on Rent u/s 194IB

Summary : As per the following notification of CBDT , i)  Time Period and Form : -Any sum deducted under section 194-IB (Read 194IB -TDS on Rent w.e.f 01.06.2017 in case of Individual and HUF not liable for Audit ] shall be paid to the credit of the Central Government within a period of thirty days from… Read More »

New Safe Harbour Rules Notified by CBDT

Central Board of Direct Taxes (CBDT) notifies new Safe Harbour Regime In order to reduce transfer pricing disputes, to provide certainty to taxpayers, to align safe harbour margins with industry standards and to enlarge the scope of safe harbour transactions, the Central Board of Direct Taxes (CBDT) has notified a new safe harbour regime based… Read More »

PAN to be given in Form 26B instead of TAN for refund of TDS on immovable property: CBDT

PAN to be furnished in Form 26B instead of TAN for refund of TDS on immovable property: CBDT MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 5th June, 2017 G.S.R. 554(E).—In exercise of powers conferred by section 295 of the Income Tax Act, 1961 (43 of 1961) (hereinafter… Read More »

New CII Index Base Year 2001-02 Notified by CBDT for FY 2017-18 onwards – Download print

CII Index / Cost Inflation Index Base Year 2001-02 This notification of CII Index shall come into force with effect from 1st day of April, 2018 and shall accordingly apply to the assessment year 2018-19 and subsequent years. [ Read CII Index of  earlier years i.e from 1981 to 2017 – CII (COST INFLATION INDEX) INCOME… Read More »

Government authorisations (or approvals) are not eligible for depreciation

Government authorisations (or approvals) are not eligible for depreciation The Delhi Bench of the Income-tax Appellate Tribunal held that government authorisations or approvals are not licenses or rights having a business or commercial nature that, in turn, could be transferred to the taxpayer. Therefore, depreciation is not allowed on the value assigned such government authorisations. The tribunal also… Read More »

Section 10(38) of Income Tax act – New Notification AY 2018-19 equity share not chargeable to STT

CBDT of India has issued new Notification on Section 10(38) of Income Tax act . This notification shall come into force with effect from the 1st day of April, 2018 and shall accordingly apply to assessment year 2018-19 and subsequent assessment years. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New… Read More »

Section 269ST – Cash Receipt Rs 2 Lakh or more Banned w.e.f 01.04.2017

Section 269ST – Cash Receipt Rs 2 Lakh Banned w.e.f 01.04.2017  Section 269ST of Income Tax Act of India has been inserted by Finance Act 2017 w.e.f 01.04.2017 . It provided restriction on Cash Receipt of Rs 2 Lakh or more.  This provision being new, there is still a lot of confusion and curiosity among people from… Read More »

Due date for Statement of Financial Transaction ( SFT ) Extended to 30.06.2017

Central Board of Direct Taxes (CBDT) extends the due date for furnishing Statement of Financial Transaction (SFT) to 30th June 2017 Section 285BA of the Income-tax Act, 1961 requires furnishing of a statement of financial transaction (SFT) for transactions prescribed under Rule 114E of the Income-tax Rules, 1962. The due date for filing such SFT… Read More »

Procedure for Acceptance of SFT Statements from Sub-Registrar and Post Offices

DGIT(S)-ADG(S)-2/e-filingnotification/106/2016 Government of India Ministry of Finance Central Board of Direct Taxes Directorate of Income Tax (Systems) Notification No. 7 of 2017 New Delhi, 30th May, 2017 Procedure for Acceptance of Statement of Financial Transactions from Sub-Registrar Office and Post Offices (SFT) as per section 285BA of Income-tax Act, 1961 read with Rule 114E of… Read More »

Search and Seizure of undisclosed income deposited into account of Third party

Held A person could be in possession of undisclosed income not only in his or her own account but in someone else’s account. In the context of the present petitions, therefore, when pursuant to the search warrant, the Department proceeded to search and seize not only valuable things etc. found in the premises of Mr.… Read More »

Clubbing of Minor Child Income if Parents Died – CBDT Clarify- Notification No. 5/2017

Clubbing of minor Child income if Parents Died Summary : Till date there was the confusion as how to do Clubbing of minor Child income if Parents Died and who should file Income Tax Return of minor child if he/she has Interest income from Fixed Deposits etc . But as per the following notification  dated… Read More »

Section 285BA Income Tax Act- Statement of financial transaction or reportable account

Section 285BA of Income Tax Act 1961 ( updated till  Finance Act 2017 ) 1[Obligation to furnish statement of financial transaction or reportable account. 285BA. (1) Any person, being— (a)          an assessee; or (b)          the prescribed person in the case of an office of Government; or (c)          a local authority or other public body… Read More »

Committee to recommend measures for recovery of arrears of taxes

F. No. 385/20/2017-IT(B) Government of India Ministry of Finance Central Board of Direct Taxes ***** Dated: 25.05.2017 Office Memorandum Subject: Constitution of Committee to recommend measures for expeditious recovery of arrears of taxes. A Committee of the following officers is hereby constituted to study the nature and extent of arrears of direct taxes and to… Read More »

Add/ Register as Representative on Income Tax India e-Filing portal

Add/ Register as Representative A new functionality “Add/ Register as Representative” is enabled in e-Filing portal. The existing functionalities of “Legal Heir”, “Liquidator” and “Person Competent to Verify” are consolidated into a single functionality along with additional categories. Central Board of Direct Taxes, e-Filing Project- User Manual-Add/ Register as Representative 1 Introduction As per section… Read More »

Statement of Financial Transaction (SFT) & SFT Preliminary Response – CBDT Clarify

Central Board of Direct Taxes (CBDT) Issues Clarification on furnishing Statement of Financial Transaction (SFT) & SFT Preliminary Response Section 285BA of the Income-tax Act, 1961 requires furnishing of a Statement of Financial Transaction (SFT) for transactions prescribed under Rule 114E of the Income-tax Rules, 1962. The due date for filing such SFT in Form… Read More »

ITDREIN Meaning

ITDREIN TDREIN means Income Tax Department Reporting Entity Identification Number .ITDREIN is the Unique ID issued by Income Tax Department (ITD)  which will be communicated by ITD after the registration of the reporting entity with ITD The ITDREIN is a 16-character identification number in the format XXXXXXXXXX.YZNNN where XXXXXXXXXX  PAN or TAN of the… Read More »

Expense reimbursements not taxable as transfer pricing study showed no profit element

The Mumbai Bench of the Income-tax Appellate Tribunal held that amounts received by the taxpayer as reimbursements of training-related travel expenses, group health insurance, and other incidental expenses under a technical service agreement were not taxable as fees for technical services. Relying in part on the transfer pricing study and transfer pricing order, the tribunal… Read More »

Authority under Prohibition of Benami Property Transactions Act 1988 Notified

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 40/2017 New Delhi, the 18th May, 2017 (Income-tax) Authority under the Prohibition of Benami Property Transactions Act, 1988 S.O. 1621(E). – In exercise of the powers conferred under sub-section (2) of section 28 read with section 59 of the Prohibition of Benami Property… Read More »

400 benami transaction identified by Income tax Department

Income Tax Department Steps-up actions under Benami Transactions (Prohibition) Amendment Act, 2016   The Income-tax Department (ITD) has initiated actions under the new Benami Transactions (Prohibition) Amendment Act, 2016 (the Act) w.e.f. 1st November, 2016. The Prohibition of Benami Property Transactions Rules, 2016 have been framed in this regard. As per the Act, Benami property… Read More »