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

www.carajput.com;CBDT: INCOME TAX

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.

www.carajput.com;INCOME TAX extend time limit

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)

TAX UPDATE NOVEMBER 18, 2015

INCOME TAX ACT

Untitled32ANon-compete fee : Where for assessment year 1996-97 under an agreement, assessee transferred one of its business to other company but continued its business using its own logo, trade name, licenses and permits, no part of non-compete fee received by assessee under aforesaid agreement could be treated as considerations for goodwill and it was not taxable as income – [2015] 62 188 (Madras)

SECTION 43 BUSINESS DISALLOWANCE – CERTAIN DEDUCTIONS TO BE

 ALLOWED ONLY ON ACTUAL PAYMENT

 Contingent liability : Where import contract stated that after purchase liability in respect of customs duty, excise duty, penalty, sales tax, etc., would be paid by assessee, since liability, was contingent upon uncertain fact, deduction under section 43B was not permissible – [2015]  75 (Delhi)

SECTION 45 CAPITAL GAINS – CHARGEABLE AS

Where assessee was an ‘ESOP Trust’ created by settler-company for implementing its ESOP scheme the assessee was merely acting as ‘Special Purpose Vehicle’. Shares held by the assessee were in fiduciary capacity and assessee did not have absolute rights over those, so these shares could not be categorized as business assets. Thus, gain arising to assessee on transfer of shares to employees of settler-company was to be treated as capital gain and not as business profits – [2015]  (Mumbai – Trib.)

SECTION 68 CASH CREDITS

Gifts : Where assessee claimed that during year his minor children had received gifts of Rs. 3.71 Lakhs from four relatives and Assessing Officer rejected gifts and added amount in income of assessee, since all ingredients of valid gifts had been proved by assessee, impugned addition was not justified – [2015] 62 123 (Allahabad)

SECTION 80PDEDUCTIONS – INCOME OF CO-OPERATIVE SOCIETIES

 Credit societies: SLP granted against High Court’s order where it was held that since assessee was a credit co-operative society, engaged in providing credit facilities to its members only, it was entitled to claim deduction under section 80

SECTION148 INCOME ESCAPING ASSESSMENT – ISSUE OF NOTICE FOR

 Condition precedent/Jurisdiction : Reassessment by jurisdictional Assessing Officer on basis of notice issued by Income-tax Officer collecting AIR information, but having no jurisdiction over assessee, is invalid – [2015 (Lucknow – Trib.)

SECTION 153C SEARCH AND SEIZURE – ASSESSMENT OF INCOME OF ANY OTHER

 PERSON

Delhi HC lays down principles to a void vexatious proceedings u/s 153C against person other than person searched – [2015] 62 

SECTION 194LA DEDUCTION OF TAX AT SOURCE – PAYMENT OF COMPENSATION

ON ACQUISITION OF CERTAIN IMMOVABLE PROPERTY

The question of compulsory acquisition will arise only where the compensation cannot be determined by agreement. In other words when the compensation is based on an agreement between State Government and owner of the land, no more can we say that it is a compulsory acquisition – [2015] 62 393 (Bangalore – Trib.)

SECTION 245D SETTLEMENT COMMISSION – PROCEDURE ON APPLICATION UNDER SECTION 245C

Abatement : Where assessee had not paid requisite amount of taxes and interest on revised undisclosed income on or before specified date, settlement application filed by assessee stood abated – [2015]  82 (Gujarat)

SECTION 260A HIGH COURT – APPEALS TO

Court fee : As section 52A of Kerala Court fees, Act specified court fee in appeal before High Court at 1% of income assessed by Assessing Officer, but in many cases such assessed income might not at all survive, State Government had to make required amendment; High Court opined that instant matter was to be stayed till information about steps taken by State Government was provided – [2015] 62  389 (SC)

SECTION 271(1)(c) PENALTY – FOR CONCEALMENT OF INCOME

Interest income: Penalty could not be levied under section 271(1)(c) on ground that assessee applied different system of accounting for interest expenses and interest received – [2015] 62  81 (Gujarat)

COMPANIES ACT SECTION 397 OPPRESSION AND MISMANAGEMENT

Right provided under sections 397 and 398 are statutory in nature and vested with parties to prevent oppression and mis-management against member or company and such reliefs cannot be granted by civil court; hence on dismissal/withdrawal of civil suit and approaching CLB, principles of res judicata not applicable – [2015]  277 (CLB – New Delhi)

COMPTROLLER AND AUDITOR GENERALS (DUTIES, POWERS AND CONDITIONS OF SERVICE) ACT SECTION 20(1) AUDIT OF ACCOUNTS OF CERTAIN AUTHORITIES OR BODIES

Direction of Delhi Govt ordering tariff audit of discoms by CAG quashed as the opportunity given to discoms to represent against the proposal for audit was not a “reasonable opportunity” within the meaning of section 20(3) of the CAG Act as the opportunity was given without disclosing the public interest in which audit of DISCOMS by CAG was deemed expedient and as the opportunity to represent was given before consultation with CAG and before the terms and conditions for audit were agreed between GNCTD and CAG – [2015]  394 (Delhi)

CENTRAL EXCISE ACT SECTION 11D RECOVERY – OF SUMS COLLECTED IN EXCESS OF DUTY/TAX

Entire burden of proving that assessee has collected money representing duty/tax rests on revenue; however, where revenue had failed to discharge said burden, Tribunal was correct in remanding matter back – [2015]  257 (Andhra Pradesh)

SECTION 35C APPEALS – RECTIFICATION OF MISTAKES/REVIEW – APPELLATE TRIBUNAL

An error, which has to be established by a long drawn process of reasoning on points where there may conceivably be two opinions does not amount to ‘error apparent on face of record’ and is not a rectifiable mistake – [2015]  392 (New Delhi – CESTAT)

CENTRAL EXCISE RULES RULE 19 EXPORTS WITHOUT PAYMENT OF DUTY

Since there was no condition stipulated in main exemption notification 42/01 that supplementary instruction to be issued by CBEC would be mandatory, assessee need not comply with such supplementary instruction so as to furnish bond to avail benefit of main exemption notification – [2015] 62 246 (New Delhi – CESTAT)

RULE 26 PENALTIES – FOR CERTAIN OFFENCES

Where appellants were not found to have acquired possession or handled any excisable goods in any manner that was liable to confiscation, no penalty could be imposed – [2015] 62 194 (Mumbai – CESTAT)

 STATUTES

CORPORATE LAWS

Submission of officially valid documents in respect of change of name on account of marriage or otherwise – Amendment in Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 – CIRCULAR DBR.AML.BC.NO.46/14/.01.001/2015-16, DATED 29-10-2015

Disclosures in abridged prospectus and price information of past issues handled by Merchant Bankers – CIRULAR NO.CFD/DIL/7/2015, DATED 30-10-2015

No fresh permission/renewal of permission to los of foreign law firms – Supereme Court’s Directions – A.P. (DIR SERIES 2015-16) CIRCULAR NO.23, DATED 29-10-2015

Early recognition of financial distress, prompt steps for Resolution and fair recovery of lenders : Framework for revitalising distressed assets in economy – Review of Guidelines On Joint Lenders’ Forum (JLF) And Corrective Action Plan (CAP) – CIRCULAR DNBR.CC.PD.NO.070/03.10.01/2015-16, DATED 29-10-2015 Sovereign Gold Bond 2015-16 – PRESS RELEASE : 2015-2016/1047, DATED 30-10-2015

 INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT)

Clarification on self-sealing and self-examination of bulk cargo – Prescribed procedures for allowing export without sealing in packages or container – CIRCULAR NO.1011/18/2015-CX, DATED 30-10-2015

Cenvat Credit (Fifth Amendment) Rules, 2015 – Amendment in rule 3 – NOTIFICATION NO.22/2015-C.E. (N.T.), DATED 29-10-2015

Filing of Reconciliation return for Year 2014-15 – CIRCULAR NO.28 OF 2015-16, DATED 30-10-2015

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)