Tax Planning Tips towards availing Tax-saving/Benefits

Tax Planning Tips towards availing Tax-saving/Benefits

www.carajput.com;Save Income Tax

www.carajput.com; Save Income Tax

Right now that most of us don’t start earning, we’re all wondering why someone needs to hear about the tax-savings mess. But when we get our first salaries and see the amount of tax reduced, we know how much efficient tax management is required. Yet most of us are unable to take advantage of all the tax-saving opportunities that we have. Most of the time, we fail to claim a deduction under chapter VI i.e Section 80C, mostly because we don’t know about the investment that saves our tax and lack of understanding of other options.

Where would you save up to 78,000 annually?

Investment Tax applicable Surcharge (4%) Total amount
In the U/s 80C (NPS, Term Life Insurance, ELSS, PPF, etc.) ₹150,000 ₹45,000 ₹1,800 ₹46,800
NPS under Section 80CCD (1B) ₹50,000 ₹15,000 ₹600 ₹15,600
Health insurance for self, family and parents under Section 80D ₹50,000 ₹15,000 ₹600 ₹15,600

Let’s address in depth the various sub-sections under Chapter VI deductions  and other benefits :

In this blog, we’re going to tell you about some strategies that could save you tax above Rs. 1.5 lakh. Here are some possibilities that will help you invest money in tax benefits;

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www.carajput.com; tax incentive

  1. Investment in National Pension Scheme under Section 80CCD (1B)

Under Section 80C, you can claim a deduction up to Rs 1.5 lakh by donating to the National pension scheme or NPS per year. Besides this, by adding another Rs 50,000 you will claim an extra deduction under Section 80CCD (1B). This implies you can minimize your tax value by Rs 15,600 by investing in NPS if you fall below a 30 percent tax bracket. Also included in this is 4 percent educational cess.

  1. Health Insurance under Section 80D

Today health insurance is not an option but a requirement. If you do not have a health insurance policy then your financial stability will be negatively impacted by a medical crisis. But health insurance policies come with some tax incentives so more and more consumers are adopting it.

Under Section 80D, you can obtain tax incentives for the additional payment charged for your insurance cover. And the incentives can be applied for – a regular life insurance policy, health insurance providers, and child-care plan as well. You can also receive a tax deduction for routine health check-ups, as long as it is under the insurance coverage limits.

Type of policy Deduction limit from Tax
Individual, spouse & children, and if anyone is a senior citizen Rs. 50,000
Parents which are not a senior citizen Rs. 25,000
The parent which are a senior citizen Rs. 50,000

If your immediate family and not parents are insured by the insurance scheme, then you can demand up to Rs 25,000 on the premium charged. If an individual above the age of 60 is covered by the scheme then the maximum you can demand is Rs 50,000. Besides, if you have taken any scheme for your parents, then the premium is Rs 25,000 for non-senior citizens. And it’s Rs 50000, for senior citizens. This is beyond the limitations of family protection.

Let us take a look at one case. Suppose Anil, a 35-year-old working professional, has acquired a health insurance policy covering him, his wife, and child. Under Section 80D, he may in a financial year claim up to Rs 25,0000 for this policy. This policy also includes preventive health check-ups. For this policy, he pays Rs 18,000 each year and another Rs 4,000 for a preventive health check-up. Under Section 80D, he may claim a Rs 22,000 deduction.

Now for his parents, who are senior citizens, taken another health policy. He will demand deductions up to Rs. 50,000 under this scheme. In total, he could claim a deduction for two policies up to Rs 75,000.

  1. Disabled Dependent under Section 80DD

If a taxpayer caring for a disabled dependent, then he can claims tax deductions under Section 80DD. This deduction is provided as a support to the disabled family members. A disability dependent may come under this section are spouse, children, parents, and sibling  It may be any family member of the Hindu Undivided Family (HUF).

It is important to ensure that the disabled dependent has not claimed a deduction under section 80U for receiving compensation under this act. Under the section, Disabilities which are covered –

  • Blindness
  • Low vision
  • Loco-motor disability
  • Hearing impairment
  • Mental retardation
  • Mental illness
  • Autism
  • Cerebral palsy

May you demand deductions on Expenses for the care, caring, development, and rehabilitation of disabled persons.

  • For the premium paid for these particular conditions on policies
  • But the deduction amount depends on the severity of the disease. The taxpayer will demand deductions up to Rs 75,000 if the injury is up to 40 percent. If the individual with a disability is at least 80% disabled, then the taxpayer will demand a deduction up to Rs 1,25,000.
  1. Interest on Education loan under Section 80E

Section 80E states that tax incentives can be obtained on the interest portion of an educational loan. And, that does not have a fixed limit. This deduction can be received by either the student or the guardians, whoever makes the repayment. However, this advantage will be accessed from the first year of the loan to the eighth year or until the loan period is complete, whichever is earlier.

Let’s suppose, for example, you finish the repayment period within six years, so you will take advantage of the gain for six years. On the other hand, even after the eight-year term, you will continue to repay the college debt, but in any situation, this tax incentive can not be taken advantage of.

  1. Interest on Saving Bank account under Section80TTA & 80TTB

We already have money in the banks and we get an interest in it. Any individual and HUF can claim a tax deduction on the interest paid. Taxpayers who are not senior citizens which claim exemptions under Section 80TTA and senior citizens which demand tax under Section 80TTB. Tax deductions can not be claimed on interest earned on Fixed Deposit, Recurring Deposit, or term deposits.

Section 80TTA:

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www.carajput.com; Section-80TTA

Under this clause, the maximum amount to be deducted is Rs 10,000. You can demand a deduction of interest earned up to Rs 10,0000. And if you have several savings accounts, the interest earned from all the deposits will be combined. Surplus income will be defined as income from other sources and taxable profits. This deduction is given on interest received –

  • From a bank deposit account
  • From a savings account with a cooperative organization engaged in the banking industry
  • From a savings account with a postal office

This deduction is NOT permitted for interest received on time deposits. Term deposits mean deposits which are repayable at the end of fixed periods. It is not permitted for –

  • Interest in fixed deposits
  • Interest in recurrent deposits
  • Any other deposits of time

Section 80TTTB:

This section was initiated as a reward for senior citizens to use as their source of revenue, interest earned by saving savings accounts and deposits on 1 April 2018. Senior citizens can assert tax deductions as high as Rs 50,000 under such a provision.

Amount of deductions allowed: A deduction of less than Rs 50,000 or a sum from a defined income is permitted from the total income. Mentioned income is the sum of all of the following income:

  • Interest in deposit accounts (savings or fixed deposits);
  • Interest in deposits held in a cooperative company engaged in banking operations, like a cooperative land mortgage bank or a cooperative land development bank; or
  • Interest in deposits at the post office

    www.carajput.com;summary

    www.carajput.com; summary

  1. PPF (Public Provident Fund)

Established by the National Savings Organization and sponsored by the Government of India, PPF is a long-term fund (read 15 years) that you can use for purposes such as raising your child or retiring.  This ensures the investment you make, the profits you receive, and the gains from the growth are absolutely tax-free. You will also demand tax benefits for the amount you spend according to Section 80C of the Income Tax Act.

For PPF the minimum contribution is just Rs. 500. For a financial year, you can spend up to 1,50,000 Rs. The central government sets the interest rate for PPF along with many other savings schemes and revises the rates each quarter.

  1. EPF (Employee Provident Fund)

T hat is only if, of course, you deduct the money after retirement! Premature withdrawal if you have kept the EPF account for 5 consecutive years is tax-free. The amount of interest would be tax-free too. Accordance with Section 80C you can demand tax deductions for the amount invested.

You should pay 12 percent of your basic salary to EPF compulsorily while your employer contributes equally. EPF includes a company employing 20 or more employees with a rate of 12 percent applied to these organizations. However, the EPF rules specify that under some requirements and conditions those organizations that have less than 20 employees will contribute to 10 percent. You may also make voluntary contributions in excess of that limit. How much can you help? In your EPF, you could spend up to 100 percent of your minimum salary plus dearness allowance. Both of the investments you make will receive the same rate of interest. The tax and withdrawal regulations would also be similar for such voluntary contributions.

Remember that the employer’s contribution to the Employee pension scheme (EPS) would be 8.33 percent. Rs 1250 will be spent in EPS for any employee whose basic salary is Rs. 15,000 or more. If the basic salary is less than Rs. 15,000, so EPS will earn 8.33 percent of the wage. The average interest rate for EPF is 8.55 percent, measured on the basis of the monthly operating balance. Assume you receive a basic salary of Rs. 50,000, the EPF balance will be Rs. 1.29 lakhs at the end of one year considering the existing interest rate. If you include the balance of your EPS it will be Rs. 1.34 lakhs.

Today, after one month of resigning from service, EPF customers will deduct 75 percent of their overall account balance.

  1. ULIP (Unit-Linked Insurance Plan)

A portion of the ULIP premium, being a hybrid option, will go into insurance coverage and another portion will be deposited in the stock market. The premium you pay counts under Section 80C for tax exemptions and the returns you will obtain on maturity will also be excluded from tax under Section 10(10D) of the Income Tax Act.

According to the Insurance Regulatory and Development Authority (IRDAI) of  India’s, the overall annual fund management fees can be 1.35 percent. The minimum insurance plan must therefore be 10 times the average premium, it has reported. These rules guarantee that the premiums do not reduce the returns, and insurance coverage is not negligible.

You can select from the fund options that insurer offers that come with various asset allocations. Based on your risk profile, investing in both equity and debt may allow you to invest more in equity, debt, or have a balanced approach. Post-tax returns from ULIPs may be between 7 percent -9 percent.

  1. SSY (Sukanya Samridhi Yojana)

    Are you going to have a baby girl? SSY is also one of the best long-term initiatives to produce tax-free returns. The average interest rate of the program is 8.1%. Pursuant to Section 80C, the money deposited will be registered as a tax deduction. The minimum deposit balance is Rs. 250 and you can invest Rs. 1.5 lakhs in a financial year.

    You can create an SSY account before your child turns 10. You’ll handle your account until you get married, or 21 years from the opening date of your account, whichever is earlier. Once she turns 18, you will make a partial withdrawal for your daughter’s education.

  2. Contribution Given to political party

Section80GGC

  • If, in the previous year, any individual except the local authority and any artificial legal entity, wholly or partially supported by the government, contributes to any political party or political trust. The tax incentive is required to pay 100% of the amount only if the donation is not paid in cash.

Section GGB

  • If, in the preceding year, any Indian Corporation contributes to any political party or political trust and to the expenses incurred, directly or indirectly, by an advertising company in any publication by or on behalf of a political party. The deduction shall be given to 100% of the value of the donation only if the donation is not paid in cash.
  1. Investment in notified equity saving scheme Section 80CCG

If a resident person (may be ordinarily resident or not ordinarily resident) invests in registered equity or listed unit or equity-oriented fund. The tax benefit shall be given to a resident person for 3 financial years of assessment, beginning with the assessment year applicable to the preceding year in which the listed share or the listed share of the equity-oriented fund was first acquired. The incentive is given at 50 percent of the amount invested, but the tax incentive is not allowed at more than Rs. 25.000.

  1. Contribution to certain pension fund Section 80CCC

Where an individual has made a contribution of taxable income to LIC or to some other eligible insurer under an eligible pension scheme. The tax benefit is the sum of the deposit of Rs. 1,50,000, whichever is less. However, the pension earned or the amount withdrawn by the applicant or his / her candidate is taxable in the year of receipt. There were also two subsections in this section:
Section 80CCD (1): NPS investments are eligible for tax deductions under this provision. Any Indian citizen between the ages of 18 and 60 can invest in NPS and make use of this tax benefit. This profit may also be asserted by NRIs. The maximum deduction that can be made under this clause is 10% of your income (including basic salary + DA). For self-employed people, the cap is 20% of their gross net income. Also, the maximum profit you will enjoy per year under this section is 1.5 lakh.
Section 80CCD (1b): This clause allows for an extra deduction of 50,000 for investment in NPS. This is over and beyond the 1.5 lakh available in Section 80CCD(1).

So, in brief, you can make use of a total income tax deduction of 2 lakh a year when you invest in pension fund Section 80CCC i.e NPS.

  1. Housing Loan

Section 80C

  • Housing loan principal payments: whether you have borrowed a home loan, the portion of EMI that is used to repay the principal sum is qualified for tax deductions under Section 80C. The amount you pay as interest is not eligible to claim deduction under this provision.
  • If a person or HUF has taken a loan for his first house which is self-occupied or leased or vacant (deemed to be disposed of) then he may obtain a maximum tax reward of Rs. 1,50,000 only for payment of the principal amount repaid.

Section 80EE with Section 24 and Section 80EEA

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www.carajput.com; Home-Loan-Tax-Benefit

  • The deductions under this clause are only applicable to individuals. This means that whether you are a HUF, AOP, a corporation, or any other form of the taxpayer, you can not assert any advantage under this clause.
  • Limit of amount: this deduction (up to Rs. 50,000) exceeds the cap of Rs 2 lakh in compliance with section 24 of the Act on income tax. Learn more about the deduction of Rs 2 lakh on home loan interest here.
  • In order to claim this deduction, you need not own any other property on the date of the approval of the loan from a financial institution.
  • Conditions to be met for the claim deduction
    House value should be Rs 50 lakhs or less
    Loan to the house must be Rs 35 lakhs or less

When you’re in a position to comply with both Section 24 and Section 80EE of the Income Tax Act, be swift to assert the benefits. Next, reach the deductible maximum under section 24, which is Rs. 200,000. Then proceed to claim additional benefits under section 80EE. In addition to the Rs 2 lakh limit authorized under section 24, these deductions are also permitted.

The additional deduction is allowed to the individual in respect of interest paid on loan taken for residential house property to provide benefits for first home buyers. The tax incentive shall not allow Rs. 50,000. The Union budget 2019 announced a new section 80EEA to increase the tax advantages of interest deductions to Rs 1,50,000 for housing loans for affordable homes over the term 1 April 2019 to 31 March 2020. The taxpayer should be a first-time homeowner and should not be eligible for a tax deduction 80EE. The tax incentive is only available until the repayment of the loan continues.

14. Section 80TTA

Section 80TTA allows you to demand a deduction of Rs. 10,000 on your interest earnings. This deduction is really only applicable to individuals and to HUFs. The deduction shall be entitled on:

  • Money earned in a savings bank account.
  • Profit earned on a savings bank account with a cooperative organization engaged in banking activities
  • Profit in a savings bank account with a post office

Your whole interest income would count as a deduction if it is less than 10,000. If your interest income is more than Rs. 10,000, your deduction shall be limited to Rs. 10,000.

CONCLUSION: What you need to know about saving income taxes

Prior to actually selecting a tax-saving instrument, it is necessary to take into account the degree of risk, lock-in time, liquidity, and returns. There is no point in opting for a tax-saving plan unless it fits the particular needs as well. It also helps to keep up-to-date on the latest trends in tax-saving legislation. Barring Section 80C, most taxpayers are not acquainted with some other parts of the Income Tax Act that allow them to substantially keep their tax burden. It is Strongly advised ways to save taxation under Sec 80C & 80D

  • Investment Rs 1.5 lakh under Section 80C to limit your net income
  • Buy Medical Insurance & seek a deduction of up to Rs. 25.000 (Rs. 50.000 for senior citizens) for a medical insurance premium under Section 80D.
  • Claim deductions up to Rs 50,000 for housing loan Interest under Section 80EE

Regards 

Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CBDT ALLOWS ONE TIME RELAXATION FOR VERIFICATION OF ITR

CBDT Circular dated on 13th July 2020: CBTD allows to verify previous ITR one time relaxation for verification for the FY 2014-15 TO FY 2018-19  by September 2020

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www.carajput.com; CBDT: INCOME TAX

The tax return filer effectively makes a declaration by reviewing the tax return that the information contained in the return are correct.

Normally, the tax return must be checked within 120 days of the filing of the income tax return or any extended date announced by the tax department.

The procedure for filing income tax returns is not complete until the tax return is checked. The return will not be processed by the tax department until, and until confirmed. If not confirmed, the return is invalid.

1) By circular no. 3/2020 of 13 July 2020, CBDT offered one more-time opportunity for taxpayers whose income tax returns had been filed electronically but were awaiting verification.

2) Now any taxpayer whose ITR is pending for verification can verify their ITR by 30 September 2020 or before that date.

3) It is possible to check ITR for the duration 2014-15 to FY 2018-19 via this one-time relaxation scheme

4) All these checked ITRs are to be issued by 31 December 2020 or before.

5) ITRs may be checked by EVC or by a properly signed hard copy being sent to CPC Bangalore.

Note: if any lawsuits against taxpayers have been launched in view of the fact that the taxpayer has not filed a report for that year then the value of relaxation can not be used

Benefits:-

  • In the event of failure to acknowledge return, AO may initiate proceeding u / s 144 as such returns filed are deemed invalid.
  • The carryforward of loss can get permitted, ThanksRajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Govt has extended numerous time limits under Direct Tax & Benami Act

Govt has extended numerous time limits under The Direct Tax & Benami Acts.

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www.carajput.com; INCOME TAX extend the time limit

In consideration of the difficulties faced by taxpayers in fulfilling the legislative and regulatory enforcement requirements across sectors as a result of the outbreak of Novel Corona Virus (COVID-19), on 31 March 2020 the Government adopted the Taxation and Other Laws (Relaxation of Some Provisions) Ordinance, 2020 [the Ordinance], which expanded different time limits, among other items.

In order to provide some relief to taxpayers for creating multiple compliances, on June 24, 2020, the Government issued a Notification, the main features of which are as continues to follow:

www.carajput.com;INCOME TAX extend time limit

www.carajput.com; INCOME TAX extend time limit

the Government issued a Notification, are as follows:  Link

For the period from 14 May 2020 to 31 March 2021, the Finance Minister has already released a decreased TDS rate for specified non-salaried payments to residents and specified TCS rates by 25 percent. The press release dated 13th May 2020, also followed the announcement. In this regard, the appropriate legislative amendments shall be moved in due time.

Thanks

Rajput Jain & Associates

www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

POST INCORPORATION COMPLIANCES FILINGS OF LLP

MAJOR COMPLIANCES & DUE DATE OF ANNUAL FILINGS OF EVERY LIMITED LIABILITY PARTNERSHIPS

Every Limited Liability Partnerships (LLPs) which are registered with the Ministry of Corporate Affairs (MCA) have to file the Annual Returns and Statement of Accounts for the FY 2018. here are three main compliances which should be red-flagged by all the designated partners of LLP:-

  • Preparation and filing of Annual Return under the LLP Act, 2008;
  • Preparation and filing of Financial Statements of the LLP
  • Filing of Income Tax Returns under the Income Tax Act, 1961.

The majority of the Stakeholders are ambiguous to the fact that whether filings of the Annual Returns are the mandatory thing even if they are not doing the business?

& the answer to the dubious question is YES! Every LLP has to be compliant even if there are no operations in the organization.

It is the responsibility of the organization to file all the required documents even if there are no operations or business during the financial year.

POST INCORPORATION COMPLIANCES FILINGS OF LLP

Let’s understand which LLP’s have to file the Annual Returns and Income Tax Return for the year 2018:

(I) FILING ANNUAL RETURN OF LLP:-

Annual Returns in LLP i.e… Form 11 is a Summary of LLP’s Partners like whether there are any changes in the management of the LLP.

Every LLP is required to file Annual Return in Form 11 to the Registrar within 60 days from the closure of the financial year i.e. the Annual Returns has to be filed on or before 30th May every year and for the financial year ended on 31st March 2018 the last date for filing the annual return is 30th May 2018.

Note:- Form 11 or Annual Return is Applicable on those LLPs which are registered until the 30th of September 2017. If your LLP is registered on or after the 1st October 2017 then you do not require to file LLP Annual Return in the year 2018.

(II) FILING ANNUAL ACCOUNTS OR STATEMENT OF ACCOUNTS OR P&L AND BALANCE SHEET:-

Every LLP or any other legal entity from a solo firm to a Private limited company has to prepare their accounts to get the information regarding your business that how much profit is earned by your LLP.

Every LLP has to close their accounts till 31st March 2018 this year. They are required to maintain the Books of Accounts in the Double Entry System and has to prepare a Statement of Solvency (Accounts) every year ending on 31st March.

LLP Form 8 to be filed with the Registrar of LLPs on or before 30th October every year. Therefore, 30th October 2018 is the last date for filing annual accounts this year.

Note:– Form 8 or Annual Statements for the year 2018 is applicable to those LLP which is registered till the 30th of September 2017. If your LLP is registered on or after the 1st September 2017 then you do not require to file LLP Annual Statements in the year 2018.

(III) FILING INCOME TAX RETURNS FOR THE LLP:-

Every LLP has to file the Income Tax Returns for the year 2018. In simple words, LLP is a separate legal entity so with the partner’s income tax return you have to always file the LLP Income tax return where you show your LLP’s Income and calculate the tax liability and pay the taxes to the government of India. LLP have to calculate their tax liability from their financial statements for the year 2018.

Mostly Income Tax Return the Last date is 31st July 2017 (unless extended) this year for the Individual and legal entities. However, in the case where an Audit is required, the last date for filing Income Tax returns is 30th September 2018.

If the LLP has not carried any business during the year ended 31.03.2018, the LLP has to file a NIL IT RETURN with Income Tax Authorities.

Note:- Filing of Income Tax Return is Applicable on all the LLPs which are registered during the financial year 2017-18. Therefore, it’s not a matter if your LLP is registered after 01-10-2017 still you have to file an Income tax return from the date of incorporation till 31-03-2018.

AUDIT REQUIREMENT UNDER LLP ACT, 2008:-

Only those LLPs whose annual turnover exceeds Rs. 40 lakhs or whose contribution amount exceeds Rs. 25 lakhs are required to get their accounts audited by a qualified Chartered Accountant. Meaning thereby, All the statements of accounts are certified by the CA.

AUDIT REQUIREMENT UNDER INCOME TAX ACT, 1961:-

Audit of accounts is a mandatory requirement under the Income Tax Act when the annual turnover of LLP is more than Rupees one hundred lakhs.

CERTIFICATIONS FROM COMPANY SECRETARY IN PRACTICE (PCS):-

In case of LLPs with turnover more than five crore rupees in a financial year or contribution more than Rupees fifty lakh, the annual return shall be certified by a Company Secretary in Practice.

A Summarised way Post Limited Liability Partnership formation return  Compliances is prescribed below:-

S. No. Particulars Due Date/Status
1) LLP Agreement Form 3 It is required within Thirty days of the formation of Limited Liability Partnership
2) Filling of PAN Application It is essential Required to be obtained PAN immediately, acts as an identification number for every taxpayer, and is required for opening Bank Account also
3) Freshly Opening of Bank Account in Limited Liability Partnership Name The current account needs to be opened for carrying out business transactions
4) Statement of Account and Solvency in Form 8 It required to be file within 30 days from the end of six months of the FY to which it relates
5) Annual Return of Limited Liability Partnership- Form 11 * It required to be file within  sixty days of closure of the FY
6) Filing of ITR Return

If an Audit is not required to be made

if an Audit is required to be made

 

31st of July every year

30th of Sept every year

7) KYC Compliance of designated Partner’s it should be completed on or before the thirty of Sept every year
8) Compulsory  Audit of Accounts of books of Account If Capital contribution exceeds twenty-five Lakhsor Turnover exceeds Rs. forty Lakhs

CONSEQUENCES FOR NON-FILING LLP ANNUAL RETURNS AND ACCOUNTS:-

If there is a delay in filing Form No. 8 and Form No. 11 of LLP, you will have to pay a penalty as applicable on today’s date. If the filing is not done within the stipulated time, there is a penalty of Rs. 100 per day till it is compiled. You cannot close or wind up your LLP without filing Annual Accounts.

So if you don’t file mandatory forms on time with the MCA, your LLP turns into unlimited statutory liability until the day it is compiled.

The provisions of the Act require LLPs to file the documents like Statement of Account and Solvency (SAS) in Form 8 and Annual Return (AR) in Form 11 within the time specifically indicated in relevant provisions.

The LLP Act contains provisions for compounding of offenses which are punishable with fine only. Further, for defaults/non-compliance on procedural matters such as time limits for filing requirements provisions have been made for charging default fees (on daily basis) in a non-discretionary manner. To avoid the consequences of heavy penalties, it would be advisable to comply on time within the stipulated due date of filing.

Actions are taken by Registrar of Companies against the LLPs who have not filed their Returns and Statement of Accounts:-

Apart from the above consequences and penalties, the Registrar has the right to strike off the LLPs who are not filing their Financial Statements (Form 8) and Annual Returns (Form 11) for a period of two immediate financial years.

In the line of the above right and under the provisions of Section 75 of the LLP Act, 2008 read with Rule 37 of the LLP Rules, 2009, the following registrar of Companies has issued the public notice proposing striking of the name of LLPs who are not filing their Annual Returns and Financial Statements:

It is advisable for all the Designated Partners to complete their Annual Filings in respect of LLPs to avoid striking off the name of LLPs and prevent the disqualification of DPIN (DIN).

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 16,2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 16,2016Untitled213

DIRECT TAX

  • Income Tax: Disallowance of Privilege fee paid u/s 40(a)(ii) or (iib) – sharing of revenue with the state – The privilege fee payable by the petitioner to the State Government would be taxable with effect from 1.4.2014 and not prior thereto – HC
  • Income Tax: Adoption of Profit Level Indicator (PLI) of OP/TC to determine ALP – , in the absence of identification or segregation of capital employed with regard to AE’s transaction and those with others, the RoCE method would not indicate the appropriate margin for determining the ALP. – HC
  • Income Tax: Disallowance of interest u/s 36(1)(iii) – it can be said that amount invested in the subsidiaries company was arising out of commercial expediency and was thus for the purpose of business of the assessee.
  • Income Tax: Sale of factory land at Guindy, Chennai – Capital Gain OR business profit – without bringing any material on record merely based on some remote circumstances, an inference cannot be drawn that the Assessees indulged in an adventure in the nature of business or trade.
  • Income Tax: Penalty u/s 271(1)(c ) – after taking into consideration the human conduct and preponderance of probability clearly indicate that the assessee became a willing party to nefarious black money racket for obtaining bogus gifts. Such acts cannot be taken lightly as they lead to scourge of black money in the country.

INDIRECT TAX

  • Service Tax: Cenvat Credit – input service – Outdoor catering services – a notification issued in Notification No.3/2011 dated 1.3.2011 excluding the outdoor catering services came into effect on 1.4.2011 but here the period relates to a period prior to 1.4.2011. – credit allowed – HC
  • Central Excise: Reversal of CENVAT credit – whether the appellant while clearing the imported inputs which were found to be defective and unusable and later re-exported from their premises, is required to pay an amount equal to the credit availed on such inputs as per Rule 3(5) of the Cenvat Credit Rules, 2004 – Held No
  • Central Excise: Claim of exemption on Air conditioning unit, condensing unit, chillers, walk in cold rooms – the institution is not engaged in commercial activity and the goods are required for research purposes – respondent has complied with the Notification 10/97 dated 01.03.1997 – benefit of exemption allowed
  • Central Excise: New case cannot be made out after issuance of show cause notice and after passing the adjudication order. Both the lower authority have wrongly denied the Cenvat credit on the Capital goods.
  • Customs: Clim of refund – Excess payment of CVD at the time of import – there was indeed no assessment order as such passed by the customs authorities – The order of the Assistant Commissioner (Refund) rejecting the refund claim of the Petitioner on the ground of maintainability was, for the aforementioned reasons, plainly erroneous.
  • Customs: Import of goods – Change in standards under the FSS Act – The legitimate expectation of the importer would always subject to the policy change of the State. If the law is changed as on the date of release, the importer is bound by the law on the date of release. – HC
  • Customs: Release of property – seizure of gold and Indian currency – violation of provision of Customs Act. – the petitioner has to establish his ownership over the property before the Adjudicating Authority. Whether the adjudication proceedings are initiated legally or not, is not a question at the time of invoking the power under Section 110A of the Customs Act but what is contemplated under Section 110A is that the said person making the claim should be the owner of the goods to be released – HC

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact : info@carajput.com or call at 9555555480 Continue reading

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE JANUARY 18, 2016

CORPORATE AND PROFESSIONAL UPDATE JANUARY 18, 2016

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  1. Addition u/s 68 cannot be made solely on the ground of non-production of payer’s bank statement [Shri Ashutosh Garg vs. ACIT (ITAT Delhi), IT Appeal No.-5642/2012, A.Y 2003-04].
  2. SEBI looking to lower expense charges for mutual funds.
  3. Extension of last date of filing of online return in Form 9 for the year 2014-15, prescribed under Rule 4 of Central Sales Tax (Delhi) Rules, 2005 to 29/2/2016[Circular No.34 of 2015-16].
  4. Defunct company to pay back wages [Narendra & Co vs Workmen- Supreme Court].
  5. Interest on loans not allowable if loan utilized to finance sister concern with no direct or indirect benefit to assessee [Late Sh. Jagat Singh vs. ITO (ITAT Chandigarh), IT Appeal No.-327/2012, A.Y 2007-08].
  6. Assessee borrower not liable to prove the source of funds in the hands of lender [Sh. Dushiant Kumar vs. ITO (ITAT Amritsar Bench), ITA No.-468/2014, A.Y 2010-11].
  7. Whether the interest earned by way of temporary investment of surplus funds inextricably linked with the setting up of a power plant, prior to commencement of business, is revenue receipt and is taxable as “Income from other sources”?

Held_No

The Assessee Company was in the process of setting up a power project for which additional share capital was raised from share holders. The amount was invested in FDRs for a temporary period till the orders for machineries were placed wherefrom various payments were made to the vendors. The Ld. AO treated the interest earned on FDRs as revenue receipt and assessed the same as income from other sources.

The Hon’ble High court relying on the judgement of Indian Oil Panipat Power Consortium Limited 315 ITR 255 (Delhi High Court) held that interest income was earned in a period prior to commencement of business and the money invested in the fixed deposit was inextricably linked with the setting up of the power plant hence it is in the nature of capital receipt liable to be set off against pre-operative expenses. The appeal was dismissed. Pr. CIT Vs. Facor Power Ltd., I.T.A. No. 1011/2015, Date of Judgement: 07.01.2016, High Court of Delhi

  1. Whether hon’ble High Court has the jurisdiction to consider certain undisputed additional facts, already on record, not considered by hon’ble ITAT during appellate proceedings?

Held_Yes

In the given case, the Ld. AO during the assessment proceedings recorded some undisputed facts on the basis of which the Ld. AO disallowed the claims of the assessee. The same was upheld by the Ld. CIT (A). However, the Hon’ble ITAT allowed the claim of assessee considering the order passed by them in assessee’s own case in previous assessment year where similar facts were in question. The Hon’ble High Court disallowed the claim of assessee, after considering the facts brought on record during the assessment proceedings, which are independent of the facts considered by the hon’ble ITAT.

The Hon’ble Supreme Court upheld the order of High court stating that the Tribunal is the final fact finding authority and it is beyond the power of the High Court, in the exercise of its reference jurisdiction, to reconsider such findings on a reappraisal of the evidence and materials on record unless a specific question with regard to an issue of fact being opposed to the weight of the materials on record is raised in the reference before the High Court.  The appeal was dismissed. M/s. Ganapathy & Co. Vs. CIT, Civil Appeal No. 1964 of 2008, Date of Pronouncement: 18.01.2016, Supreme Court of India

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GOVERNMENT TO UNVEIL NEW I-T TOOL TO CHECK PAN TRANSACTIONS HISTORY

GOVERNMENT TO UNVEIL NEW I-T TOOL TO CHECK PAN TRANSACTIONS HISTORY 

www.carajput.com; Business Setup

www.carajput.com; Business Setup

Government is set to unveil an ambitious PAN activity monitoring and analysis software tool that will enable Income Tax department to check transactions history of a person country-wide and help sleuths in effective tracking of black money trail.

The digital and smart platform is called the Income Tax Business Application-Permanent Account Number (ITBA- PAN) and is currently being put to final tests by a special team of tax sleuths and business software analysts at a facility in the national capital.

The new software tool will enable the taxman to view, in a chronological order, the entire “PAN life cycle summary” or to simply say transactions history of an individual or entity where a PAN number has been quoted, in any part of the country.

The project is expected to be activated by the end of this month by the Finance Ministry and will also enable the tax department and its two intermediary organisations–NSDL and UTIITSL– to allocate a fresh PAN number and subsequently issue a new card in 48 hours flat as compared to the about 15 days time taken currently.

The operationalisation of the project assumes significance as Finance Minister Arun Jaitley had recently said that the government is at an “advanced stage in considering the requirement of furnishing PAN card details if cash transactions beyond a certain limit are undertaken.”

The department, in order to enhance its capabilities to better track large value transactions in the country, has brought the ITBA-PAN portal and has for the same has also closed down its “legacy” and the existing Assessee Information System (AIS) early this month which till now used to hold the PAN database.

The new platform, according to an official proposal accessed by PTI, will also allow the taxman to view and capture various events of an assessee like “death, liquidation, dissolution, de-merger, merger, acquisition, fake PAN or amalgamation of PAN” in a specific or general case in an event of any investigation to be carried out in a case of black money or tax evasion.

“The ambitious project will be rolled out soon and the I-T department has already migrated all the PAN data last week from the old system to the new one. With this project going operational, PAN will become a unique identifying database in the real sense all across the country,” a senior official said today.

The new tool will also allow the taxman to remotely identify duplicate or fake PANs in its system which has been troubling the tax investigators for a long time and was used by criminals to perpetrate black money operations within and outside the country.

The ITBA-PAN software will also allow a PAN holder to request for deletion or de-activation of his or her PAN and it will send an electronic and digitally signed “intimation letter” in this regard to the concerned assessee.

The soon-to-be launched platform will also allow an entity to activate a wrongly deleted or de-activated PAN number.

In order to provide better services to taxpayers, the platform will allow for a smooth computer-based transfer of an individual’s PAN number in case they are transferred or re-located from one place to the other.

PAN is a ten-digit alphanumeric number issued in form of a laminated card by the Income Tax department.

It is also a national identification number of the taxpayer which has to be mandatorily quoted on the return of income and in all correspondences with the department.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

SUMMARY ABOUT INCOME-TAX ASSESSMENTS PROCEDURES, APPEALS AND REVISION

SUMMARY ABOUT INCOME-TAX ASSESSMENTS PROCEDURES, APPEALS AND REVISION

www.carajput.com;Income Tax

www.carajput.com;Income Tax

  1. TIME FOR FILING RETURN OF INCOME [SEC. 139 (1)] Different Situations Due Date for filing Return 1. Where the assessee is a company i. Required to file a Transfer Pricing report under section 92E ii. In any other case 30th November 30th September 2. Where the assessee is person other than a company – i. In case where accounts of the assessee are required 30th September to be audited under any law ii. Where the assessee is “working partner” in a firm whose accounts are required to be audited under any law iii. In any other case 30th September 31st July
  1. FILING OF RETURNS – STEPS  Compute income for each Source of Income  Aggregate the income from various sources under the respective Heads of Income  Arrive at the Gross Total Income Claim the Deductions available  Arrive at the Total Income
  1. FILING OF RETURNS – STEPS  Compute  Reduce  Add the Tax payable on the Total Income the Rebates, if any from the tax payable Surcharge as applicable to the tax  Add the Education Cess to the figure of tax plus surcharge  Arrive at the Gross Tax Liability
  1. FILING OF RETURNS – STEPS  From the Gross Tax payable, reduce the TDS  Arrive at the Net Tax Payable or the Refund due as the case may be  If the net tax payable is equal to or more than Rs. 10,000 then Advance Tax is payable  Advance tax is payable in 3 installments (4 in case of companies) during the previous year itself.
  1. FILING OF RETURNS – STEPS  If there is a shortfall in payment of advance tax then calculate Interest u/s. 234B and/or 234C  If the return is filed late then calculate Interest u/s. 234A  From the net tax payable, reduce the Advance Tax  Add the Interest to the balance amount to arrive at the Self Assessment Tax Payable / Net Refund Due.
  1. FILING OF RETURNS – STEPS  Pay the Self Assessment Tax  File the Return physically or upload the return electronically.
  1. ADVANCE TAX [SECTION 211]  Advance tax is payable in 3 Installments (4 in case of Companies)— Payable on 15th June  15th September  15th December  15th March— and Where first installment of 15th June is payable only if the assessee is a company.
  1. SELF ASSESSMENT TAX [SECTION 140A] When on computation of income for the year for the purpose of filing the return of income it is found that some tax remains payable even after adjustment of advance tax along with deducted/collected at source, such balance tax along with interest thereon is required to be paid as self-assessment tax before filing the returns of income.  From A.Y 2013-14, any return uploaded without paying the Self-assessment tax would not be accepted by the Income-tax department and considered defective.
  1. RETURN OF INCOME [SECTION 139]  Normal Return  Belated Return  Revised Return  Loss Return  Defective Return.
  1. NORMAL RETURN  Who is required to file return of income — Company or a firm – mandatory requirement — Others – total income exceeds basic threshold limit (i.e. INR 2,00,000 for A.Y. 2013-14)— Any person who is otherwise not required to furnish return of income will be required to file a return if he has any asset located outside India or has signing authority in any account located outside India.
  1. BELATED RETURN  Any person who has not furnished a return within the time allowed u/s 139(1) or  Within the time allowed under a notice issued u/s— 142(1), but filed before the end of one year from the relevant assessment year or the completion of the assessment, whichever is earlier.
  1. REVISED RETURN Can be filed if the assessee discovers an omission or wrong statement  Replaces the original return  Can be filed before the end of one year from the relevant assessment year or the completion of the assessment, whichever is earlier  Can be revised further  Belated return cannot be revised.
  1. LOSS RETURN  Return must be filed within the prescribed time limits  If not filed, no carry forward of loss, however carry forward of loss under House property head, unabsorbed depreciation & unabsorbed family planning expenses are permissible.
  1. DEFECTIVE  RETURN  Incomplete return  Assessee may be given an opportunity to rectify the defect  If the defect not rectified, the return treated as invalid.  Return will be defective if: columns of return not filled or annexures are not attached;  computation of income tax not attached;proof of tax deposited is not produced within the period of two years, Non furnishing of tax audit report; etc,Self-assessment tax is not paid (from A.Y 2013-14).
  1. RETURN IS FILED – WHAT NEXT?  Either a summary assessment (Section 143(1)) and/or  A regular (scrutiny) assessment (Section 143(3)).
  1. SUMMARY ASSESSMENT [SEC. 143(1) To be issued only if there is a demand or a refund due.  If no demand/refund then Acknowledgement is deemed to be the intimation  Time limit – the end of one year from the relevant assessment year or the completion of the assessment, whichever is earlier .There will be no processing of the returns where assessee are selected for Scrutiny.
  1. SCRUTINY ASSESSEMENT [SEC. 143 (2)/(3)]  Time limit for issuing notice Time limit for completing the scrutiny Type of questions that are being asked.
  1. REFUNDS [SECTION 237]  A claim for refund shall be claimed in Form No. 30  Adjustment of refund against demand for another year (Section 245).
  1. INTEREST [SECTION 234A 234D]  For Defaults in furnishing return of income [SECTION 234A]  For Failure to Deduct and pay tax at source [SECTION 201(1A)] A Interest for Default in payment of Advance Tax [SECTION 234B].
  1. INTEREST [SECTION 234A 234D] TO SECTION For Deferment of Advance Tax [SECTION 234C] Corporate Assessee [SECTION 234C(1)(a)] Non Corporate Assessee [SECTION 234C(1)(c)] àShort payment of Advance Tax in case of Capital Gains/Casual Income [First Proviso to SECTION 234C(1)].
  1. INTEREST [SECTION 234A 234D]  Interest TO SECTION on Excess Refund [SECTION 234D] For Making Late Payment of Income tax [SECTION 220(2)]  Interest Payable to Assessee [SECTION 244A].
  1. RECTIFICATION OF MISTAKES [SECTION 154]RECTIFICATION OF MISTAKES  An income-tax authority may with a view to rectifying any mistake apparent from the record:  amend any order passed by it—  amend any intimation or deemed intimation under— section 143(1) and section 200A. Rectification may also be made on application by the assessee  Orders cannot be rectified after expiry of 4 years from the end of the financial year in which order sought to be amended was passed  On rectification plea by assessee – Amendment / refusal order to be passed within 6 months from the end of the month in which the application is received by the incometax authority.
  1. RECTIFICATION OF MISTAKES  Mistake  Obvious and patent—  Self evident and reached without debate—  Fresh determination of facts should not be required—  Misreading of a clear provision of law/ applying an— inapplicable provision/ overlooking mandatory provision  Statutory interpretation should not be involved—  Record  Includes all materials/ documents available at the time— of passing the order of assessment  Fresh documents/ materials not recorded at the time of— passing the order cannot be considered  Record of any period can be considered—
  1. RECTIFICATION OF MISTAKES  Examples of mistakes apparent from record which can be rectified — Error of law or fact — Clerical or arithmetical error — Error in determination of written down value — Overlooking the obligatory provisions of the legislature — Mistakes arising out of retrospective amendment of law
  1. REVISION OF ORDERS BY COMMISSIONER [SECTION 263 & 264]REVISION OF ORDERS BY COMMISSIONER U/S 263  Pre-requisites — Erroneous order Record shall include and shall be deemed always to have included all records available at the time of examination by the Commissioner Revised order should be passed before the expiry of 2 years from the end of the financial year in which order sought to be revised was passed Opportunity of being heard should be given to the assessee before passing an order under section 263 Powers of Commissioner – Enhance, modify or cancel the assessment and direct a fresh assessment Appeal can be filed to the Appellate Tribunal against the order under section 263 —  Prejudicial to interests of Revenue
  1. REVISION OF ORDERS BY COMMISSION U/S 264 : Revision of orders, on own motion of Commissioner or on application by the assessee Revision of order on own motion by the Commissioner, to be passed within one year from date of order sought to be revised Application by assessee should be made within 1 year from date on which the order in question was communicated or date on which assessee came to know of order, whichever is earlier Order to be passed within 1 year from end of financial year in which application is made by assessee for revision Pre-requisite – Assessee to waive right of appeal Where appeal against the order has been filed – no revision possible
  1. APPEALS TO COMMISSIONER(APPEALS) [SECTION 246A TO 249]APPEALS TO COMMISSIONERS (APPEALS) Appealable orders (Illustrative):  Scrutiny assessment order—  Best Judgment assessment order—  Reassessment order—  Rectification order enhancing assessee’s liability—  Appeal against intimation passed under section 200A—  Tonnage tax order— Appeal to CIT(A) within 30 days of  Date of payment of tax, where appeal is in respect of TDS—under section 195  Date of service of notice of demand relating to assessment or— penalty  Date on which intimation of order sought to be appealed against— is served
  1. APPEALS TO COMMISSIONERS (APPEALS)  Time extended if sufficient cause proven Appeal to be filed in prescribed form and manner CIT(A) fixes a day and place for hearing the appeal, and notice of the same is given to the appellant and the assessing officer whose order is being appealed against During the course of the hearing, CIT(A) may entertain additional ground/evidence raised by the appellant in seeking modification of the assessment order passed by the assessing officer  CIT(A)’s order disposing of the appeal is in writing and states decision and reasons supporting the same  CIT(A) has powers to confirm, reduce, enhance or annul the assessment Where possible, CIT(A) to dispose within 1 year from the end of the financial year in which appeal was filed
  1. APPEALS TO TRIBUNAL [SECTION 252 TO 255]APPEALS TO TRIBUNAL  Should be filed within 60 days of the date on which the order sought to be appealed against is communicated Memorandum of cross-objections – within 30 days of receipt of notice that an appeal has been preferred to the ITAT Time extended if sufficient cause proven To be filed in prescribed form and manner Additional ground/ evidence can be raised for the first time before the ITAT. In such a case opportunity of being heard should be given to the assessing officer After hearing both parties, the ITAT passes an order as it thinks fit and communicates the same to the assessee and the Commissioner Where possible, ITAT to dispose within 4 years from the end of the financial year in which appeal was filed In case order of stay is made, appeal to be disposed within 180 days of stay order; else, stay stands vacate.
  1. APPEALS TO TRIBUNAL Mistakes apparent from record – Order of ITAT can be amended within 4 years from date of ITAT order [Section 254(2)] if it is brought to the notice by the assessee or the assessing officer  Final fact finding authority  Binding nature
  1. APPEAL TO HIGH COURT [SECTION 260A] APPEALS TO HIGH COURT Right exercisable u/s 260A  Preferred against ITAT’s order  Only for a case involving a “substantial question of law”  Should be filled within 120 days of receipt of ITAT’sorder  Can also be filed by the Tax department  Rules framed for court proceedings and conduct has to be observed
  1. APPEALS TO SUPREME COURT Right exercisable u/s 261.  Preferred against High Court’s order Only for a case involving a “substantial question of law”  Should be filled within 60 days of receipt of High Court’s order  Can also be filed by the Tax department  Rules framed for court proceedings and conduct has to be observed

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 011-23343333

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Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)