Category Archives: Income Tax

Demonitization : Rs. 5400 crore detected , 1100 searches , 5100 notices by Income tax depdt

Demonitization: From 9th November 2016 to 10th January 2017, more than 1100 searches and surveys were conducted by the ITD; more than more than 5100 verification notices issued; The undisclosed income detected in these actions was more than Rs. 5400 crore. Disclosure of information regarding law flouters/specific taxpayers is prohibited except as provided under Section… Read More »

Centrally Sponsored Schemes – sunset date for all schemes 

Centrally Sponsored Schemes – sunset date for all schemes  There are 28 Centrally Sponsored Schemes running across the country. All 28 Centrally Sponsored Schemes have sunset dates except Mahatma Gandhi National Rural Employment Guarantee Scheme of the Ministry of Rural Development, which is under Mahatma Gandhi Rural Employment Guarantee Act. In para-110 of the Budget… Read More »

No TDS on GST Paid / Payable on Services if Shown Seprarately in Tax Invoice : CDBT Circular No 23/ 2017 Dated 19h July 2017

Circular No 23/ 2017 Dated 19h July 2017 Subject : modification of Circular No 1 of 2014 in view of Substitution of Service tax by Goods and Service tax ( GST ) Download Circular No 23/2017 Related Topic on GST Topic Click Link GST Acts  Central GST Act and States GST Acts GST Rules GST… Read More »

MOC for tax matters between India and BRICS countries

Cabinet approves MOC in respect of tax matters between India and BRICS countries – Brazil, Russia, China and South Africa  The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given the approval for the signing of Memorandum of Cooperation (MOC) in respect of tax matters between India and the Revenue administrations of… Read More »

Sales tax subsidy is revenue receipt if can be used for any purpose

Q : Whether the amount received by the assessee by way of exemption of sales tax payments was  a trading receipt and not a capital receipt, hence  liable to tax ? Held , Yes HIGH COURT OF DELHI Commissioner of Income-tax v. Bhushan Steels & Strips Ltd. S. RAVINDRA BHAT AND NAJMI WAZIRI, JJ. IT APPEAL NOS.… Read More »

Tax effect of filing appeal in case of section 115JB / 115JC : CBDT Modified Circular 21/2015 dated 10.12.2015

F.No.279/Misc-142/2007-ITJ-(Pt) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, the 14th July, 2017 To, All Principal Chief Commissioners of Income Tax Sub: Modification of Circular No. 21/2015 dated 10.12.2015 Madam/Sir, References are being received by the Board that in certain cases appellate authorities are dismissing appeals without going… Read More »

Final Rules for Valuation of unquoted Equity shares released by CBDT : Notification No. 61 /2017 Dated 12th July 2017

Notification No. 61 /2017 Dated 12th July, 2017 Method for Fair market value of unquoted equity share prescribed vide Notification No. 61 /2017 Dated 12th July, 2017 MINISTRY OF FINANCE (Department of Revenue) [CENTRAL BOARD OF DIRECT TAXES] NOTIFICATION New Delhi, the 12th July, 2017 INCOME-TAX G.S.R. 865(E).—In exercise of the powers conferred by section 50CA and sub-section… Read More »

Aaykar Setu : New Income tax payer service module Launched

FM launches a new tax payer service module ‘Aaykar Setu’ that compiles various tax tools, live chat facility, dynamic updates, and important links to various processes within the Income Tax Department in a single module; Says that this e-initiative would not only provide better taxpayer services but would also help in reducing the direct physical… Read More »

Income Tax scrutiny Guidelines for financial year 2017-2018 : CBDT Instruction No. 05/2017 Dated 7th of July, 2017

Instruction No. 05/2017 Government of India Ministry of Finance Department of Revenue (CBDT) North-Block, New Delhi the 7th of July, 2017 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: Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd.- 1. In supersession of earlier Instructions on… Read More »

Disclose Property Advance > Rs 20000 in Tax Audit Form 3CD w.e.f 19.07.2017 Via Notification No. 58/2017 Dated 3rd July, 2017

Notification No. 58/2017 [ Income Tax ] Dated 3rd July, 2017 Summary : CBDT i.e  Rule making body of Income tax Department of India has amended the Tax Audit Report Format w.e.f 19.07.2017 vide Notification No. 58/2017 Dated 3rd July, 2017 . This Notification requires to make additional disclosure in Tax Audit Report i.e Form No 3CD in… Read More »

Procedure for Informing Aadhaar Number to Income Tax Department – Notification No 7/2017 Dated 29th June 2017

Procedure for Informing Aadhaar Number to Income Tax Department vide Notification No 7/2017 Dated 29th June 2017 issued by CBDT i) Procedure for Informing Aadhaar Number to Income Tax Department has been specified ii) Procedure for Quoting Aadhaar number in PAN Application form  49A has been specified Download Notification No 7/2017 Dated 29th June 2017 Related… Read More »

CORRIGENDUM to Notification No 58/2017 dated the 3rd July 2017,

Notification No 58/2017 dated the 3rd July 2017, Amended Vide Notification No. 60/2017 / F. No. 370142/10/2017–TPL Dated 6th July, 2017 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) CORRIGENDUM New Delhi, the 6th July, 2017 INCOME-TAX G.S.R. 841(E).—In the notification of the Government of India, Ministry of Finance, Department of Revenue (Central… Read More »

Direct Tax collections up to June 2017 increase of 14.8%

Direct Tax Collections up to June, 2017 for F.Y. 2017-2018 stood at Rs.1,42 Lakh crore registering a Growth of 14.8% higher than the net collections for the corresponding period of last year; Net direct tax collections represent 14.5% of the total Budget Estimates of Rs. 9.8 lakh crore for Direct Taxes for F.Y. 2017-18.  The… Read More »

Receipt of interest on securities without TDS by Foreign Company -Notification No. 59/2017 Dated 4th July, 2017

Notification No. 59/2017 Dated 4th July, 2017 Summary : Following Notification made amendment in Rule 29B of Income Tax Rules i.e Application for certificate authorising receipt of interest and other sums without deduction of tax. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 4th July, 2017 INCOME-TAX G.S.R. 826(E).—In… Read More »

Section 269ST Income Tax Act 1961 : Finance Act 2017

Section  269ST Income-tax Act, 1961 – FA, 2017  [Section 269ST Income-tax Act 1961 Inserted by the Finance Act, 2017, w.e.f. 1-4-2017. ] Mode of undertaking transactions. 269ST. No person shall receive an amount of two lakh rupees or more— (a)          in aggregate from a person in a day; or (b)          in respect of a single… Read More »

List of Persons who can receive Cash Payment of Rs 2 Lakh or more – 269ST : CBDT Notification No. 57 /2017/F. No. 370142/10/2017-TPL 3rd July, 2017

Notification No. 57 /2017 /F. No. 370142/10/2017-TPL Dated 3rd July, 2017 Summary : CBDT Notify person on whom provisions of Section 269 ST of Income Tax does not apply Vide Notification No. 57 /2017/F. No. 370142/10/2017-TPL Dated 3rd July, 2017 given below  . MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 3rd July, 2017 S.O.… Read More »

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 »