HIGHLIGHT ON VALIDATION OF TAX RETURNS

Validation of tax-returns through Electronic Verification Code

• The Central Board of Direct Taxes (‘CBDT’) vide Notification No. 41/2015 dated 15.04.2015 has introduced Electronic Verification Code (‘EVC’) as one of the modes for validation of return of income which are filed electronically on or after 01.04.2015.
• In case of returns of income pertaining to Assessment Years 2013-2014 and 2014-2015 filed  electronically (without digital  signature certificate) between 01.04.2014 to 31.03.2015, time-limit for submission of ITR-V to the CPC Bengaluru has already been extended till 31.10.2015 vide Notification No. 1/2015 dated 10.07.2015 issued by the Pr. DGIT (Systems). CBDT.

 

In order to facilitate the process of validation of such returns, CBDT, in exercise of the powers conferred under sub-section (1) of section 119 of the Income-tax Act. 1961, hereby directs that the taxpayer can validate such returns of income within the said extended time through EVC also.

CBDT releases Java Utility for e-filing Form 6 to declare black money

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (‘Black Money Act’) has been enforced from July 1, 2015.

The Black Money Act provides for 30% tax on the value of undisclosed foreign income or assets and a penalty of three times of tax so computed.

It further provides for prosecution up to 10 years in case of willful attempt to evade tax on foreign income or assets held outside India.

However, the Black Money Act allows one-time compliance window for the taxpayers to voluntarily disclose undisclosed foreign income or assets. The declaration can be made till the due date.

Any person availing of benefit of compliance window is required to pay tax at the rate of 30% of value of undisclosed foreign income or asset and a penalty of 100% of tax.

Such taxes and penalty are required to be paid by the declaring on or before the due date.

The Government has notified Form 6 to make declaration of undisclosed foreign income or asset under the compliance window.

The taxpayer has an option to file the declaration either manually to CIT, Delhi or e-file it using the digital signature.

Therefore, for the purposes of e-filing of Form 6, the Board has released the Java utility. The taxpayer can now fill up Form 6 by downloading the Java utility from e-filing website.

After filling the relevant information in Form 6 through Java Utility, the taxpayer needs to generate the .xml file and submit it under e-filing option available after login at https://incometaxindiaefiling.gov.in.

Declarant needs to attach relevant scanned documents (i.e., scanned copy of valuation report or FMV computation) in PDF or ZIP format along with XML file. The size of PDF/ZIP documents should not exceed 50MB.

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

More read: Taxation on Income from Equity and Debt Mutual Fund

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