Income Tax Department, Bangalore becomes ISO-27001:2005 Compliant - CPC

The Press Information Bureau, Government of India hass issed Press relesed regarding Centralized Processing Center (CPC), Income Tax Deparrment - Bengluru Becomes ISO-27001:2005 Compliant which is as under:

Centralized Processing Center (CPC), Bengluru Becomes ISO-27001:2005 Compliant

Centralised Processing Center (CPC) of the Income Tax Department at Bengluru, Karnatka has added one more feather to its cap by becoming ISO 27001 compliant. The ISO-27001 certificate was awarded to CPC by British Standards Institution (BSI).

The ISO- 27001 is an Information Security Management Standard developed by ISO (International Organization for Standardization) aimed at standardizing Information Security management policies and procedures used for managing Information Security aspects of any organization. The standard ensures confidentiality, integrity, and availability of information assets and resources, using standard practices and procedures.

The Income tax Department is fully committed to the objective of safeguarding the confidentiality of taxpayer data and safety of information assets at CPC. The tax administration seeks to achieve the objective by making information security management as an overarching framework at CPC. Compliance to such International Standards of Information Security will give the assurance to taxpayers about the security of financial data in Income Tax returns. The ISO 27001 certification will also garner trust of the most important stakeholder in the program, the taxpayer, and further encourage the taxpayer to engage with the Department through the electronic mode. 

Source : www.pib.nic.in

Importance of October-2014 for TDS/TCS & others

Due date for deposit of TDS for the period July 2014 to September 2014 when Assessing Officer has permitted quarterly deposit of TDS under Section 192, 194A, 194D or 194H is 7th October, 2014

On 15th October, 2014 is the date for Quarterly statement of TDS/TCS deposited for the quarter ending September 30, 2014 (applicable in all cases of TDS/TCS except when tax is deducted by an office of the Government).

Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of September, 2014 is 22nd October, 2014.

Quarterly TDS certificate (in respect of tax deducted for payments other than salary by a person not being an office of the Government) or quarterly TCS certificate (in respect of tax collected by any person) for the quarter ending September 30, 2014 is on 30th October, 2014.

31st October, 2014 is the Annual audited accounts for each approved programmes under section 35(2AA) last date.

​​​Due date for Copies of declaration received in Form No. 60/61 is 31st October,2014 (not being received at the time of opening a bank account) during April 1, 2014 to September 30, 2014 to the concerned Director (Investigation)​

​​​Last date for Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending September 30, 2014​ and ​Quarterly statement of tax deducted by an office of the Government for the quarter ending September 30, 2014​ is 31st October, 2014.

Air Travel concession on LTC for CG employees and families extended for 2 Years.

Extension of travelling by Air on Leave Travel Concession, the announcement, which Central Government employees were eagerly waiting for, is finally here!

Air travel concession, under the Leave Travel Concession scheme, to places like Jammu and Kashmir, North Eastern Region (NER), and also Andaman and Nicobar Islands has been extended by two more years.

For a while it was assumed that the newly crowned Modi Government had shelved this scheme.

We believe that the scheme was revived due to constant reminders from various employee unions, associations and federations.

Twice every four years, Central Government employees are given fare concessions to travel to their home town. Instead of two trips to home town, the employee is eligible to convert one of them as ALL INDIA LTC concession. Depending on their designation, the employees are eligible to utilize air, ship, rail and road transportation facilities, along with the travel class

The Government has been spending crores of Rupees to usher in development in economically-backward areas like Jammu and Kashmir, NER. As part of its various development schemes, the Government is trying to encourage tourism to these areas. The air travel concession, which is being offered for six years now, is part of this attempt. Awareness of this concession has increased only in the past two years and Central Government employees had only recently started utilizing the option. Under the scheme, Central Government employees can travel to these regions, with their families, by air, and reimburse the air tickets. For further information, please read the official notification. (Click here to view the Dopt Notification)

Although there are certain minor drawbacks, such concessions enjoy immense popularity. This time, there is a minor change – Andaman and Nicobar Islands have been added to the list of destinations. The announcement is a boon for the Central Government employees who didn’t utilize this opportunity in the previous round, and travel via air with their entire family.

Source: CGEN.in

Tolerable limit for ALP unchanged for Assessment Year 2014-15 - CBDT

CBDT has issued a notification under Section 92C of the Income-Tax Act, 1961 for Transfer Pricing and Computation of Arm’s Length Price to keeps Tolerable Limit for ALP unchaged for Assessment Year 2014-15.

CBDT hereby notifies that where the variation between the arm’s length price determined under section 92C and the price of which the international transaction or pecified domestic transaction has actually been undertaken does not exceed one percent of the latter in respect of wholesale trading and three percent of the latter. In all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price for assessment year 2014-15.

Explanation :

For the purposes of this notification, “wholesale trading” means an international transaction or specified domestic transaction of trading in goods, which fulfils the following conditions, namely :—
  • purchase cost of finished goods is eighty percent or more of the total cost pertaining to such trading activities; and
  • average monthly closing inventory of such goods is ten percent or less of sales pertaining to such trading activities.

CPC(TDS) advice to correct Short Payment Defaults by online Correction facility on TRACES

CPC (TDS) has issued a advisory communication in which it has recommended deductors that in case there are “Short Payment Defaults” in their TDS Statements due to “Mismatch of Challans” then they can get the default closed using Online Correction feature, which is available for TDS Statements related to Financial Year 2007-08 onwards.

The issued communication has been given below:

Dear Deductor (TAN: ),

As per the records of the Centralized Processing Cell (TDS), this has been observed that there are “Short Payment Defaults” in your TDS Statements due to “Mismatch of Challans”. CPC (TDS) recommends to get the default closed using Online Correction feature, which is available for TDS Statements related to Financial Year 2007-08 onwards.

As you may be aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars, through which TDS payments have been made. The TDS forms prescribe quoting of such challans and the underlying deductee transactions corresponding to such challans. However, it is observed that:
  • At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
  • Though CPC (TDS) makes best efforts to match such challans, however, they may remain unmatched leading to “Short Payment” demand.
  • The above results into issuance of notices by the field officers.
Please make note of the following key information in this regard:
  • CPC(TDS) suggests to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through online correction (available without digital signature).
  • In case there is no available challan for consumption, the deductor can first deposit the due tax in the bank and then the same challan will be available for tagging in CPC(TDS) system after around 3-4 days of deposit.
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default.
  • Once the challan is suitably tagged, CPC(TDS) shall suo moto reprocess the cases, thereby reducing the Short Payment default by equivalent amount.
What Actions to be taken:
  • In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
  • Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down list. You can refer to our e-tutorial for necessary help.
  • Online Challan Corrections:
  •  A list of all Matched and Unconsumed challans can be viewed by clicking the appropriate tab.
  • Unmatched challans can be corrected and tagged to Deductee rows in the statement.
  • The corrections in TDS statements can be raised even without Digital Signature.
  • Correct KYC information needs to be submitted for the purpose of validation.
  • All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard
For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

Due Date Extends to File Income Tax Return from 30th Sept, 2014 to 30th Nov, 2014 for Audit Case with ITR Forms.

CBDT has issued a notification to extension of due date for filing of return of Income for Assessment Year 2014-15 from 30th September, 2014 to 30th November, 2014 in Specified Cases i.e. Audit Accounts which is as under:

F.No.153/53/2014-TPL (Pt.I)
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
North Block, TPL Division, New Delhi

Dated: September 26, 2014

Subject: Extension of due date for filing of Return of Income from 30th Sept, 2014 to 30th Nov, 2014 in specified cases, regarding.

As per the provisions of the Income-tax Act, 1961 (‘the Act’), for an assessee, who is required to obtain Tax Audit Report (TAR) under section 44AB of the Act, the due date for furnishing his return of income is 30th September of the Assessment Year.

The Central Board of Direct Taxes (‘the Board’) vide order dated 20th August, 2014 extended the due date for obtaining and furnishing of Tax Audit Report under section 44AB of the Act for Assessment Year 2014-15 from 30th September, 2014 to 30th November, 2014. Subsequently, a number of representations were received in the Board requesting for extension of the due date for furnishing of return of income also. Writ petitions were also filed in various High Courts for directing the Board to extend the due date for furnishing of return of income from 30th September, 2014 to 30th November, 2014 in conformity with the extension of the due date for filing of Tax Audit Report.

The Gujarat High Court vide judgement dated 22.09.2014 directed the Board to extend the due date for furnishing the return of income to 30th November, 2014, except for the purposes of charging of interest under section 234A of the Act for late filing of return of income. Other High Courts also directed the Board to look into the practical difficulties of the petitioners and take a just and proper decision in this matter.

In compliance to the judgments of various High Courts and after considering the representations received for extension of the due date, the Board, in exercise of its power conferred by section 119 of the Act, has extended the `due-date’ for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the Assessment Year 2014-15 for all purposes of the Act in the case of an assessee, who is required to file his return of income by 30th September, 2014, and is also required to get his accounts audited under section 44AB of the Act or is a working partner of a firm whose accounts are required to be audited under section 44AB of the Act.

There shall be no extension of the “due date” for the purposes of charging of interest under section 234A of the Act for late filing of return of income and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act.

For removal of doubt, it is clarified that for an assessee (other than working partner of a firm which is required to obtain and furnish Tax Audit Report), who is required to file its return of income by 30th September, 2014 but not required to obtain and furnish Tax Audit Report under section 44AB, the due date for furnishing of return of income for assessment year 2014-15 remains as 30th September, 2014.

(Rekha Shukla)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT


ITR Forms for e-Filing of Tax Return online or offline

ITR Forms
Description
Excel Utility
Java Utility
ITR-1 (Sahaj)
For Individuals having Income from Salary & Interest.
ITR-2
For Individuals & HUFs not having Income from Business or Profession
ITR-3
For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR-4
For Individuals & HUFs having income from a proprietory business or profession
ITR-4S (Sugam)
For Individuals/HUF having income from presumptive business
ITR-5
For firms, AOPs,BOIs and LLP
ITR-6
For Companies other than companies claiming exemption under section 11

ITR-7
For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)



If 26AS Statement mismatch face as scrutiny - CBDT directs to AO for Asstt. Year 2015-16.

CBDT has issued a instruction No. 7/2014 dated 26th Sept., 2014, directs to AO to enquire into only AIR data/26AS mismatch issues if scrutiny is made on this basis for Fin. Year 2014-15 i.e. Asstt. Year 2015-16 under Section 143, read with Section 142 of The Income-Tax Act, 1961.  The details of this notification is as under:

It has come to the notice of the Board that uring the scrutiny assessment proceedings some of the AOs are routinely calling for information which is not relevant, for enquiry into the issues to be considered. This has been causing undue harassment to the taxpayers and has also drawn adverse criticism from several quarters. Further, feedback and analysis of such orders indicates that many times the core issues, which formed the basis of selection of the case for scrutiny were not examined properly. Such instances primarily occurred in cases selected for scrutiny under Computer Aided Scrutiny Selection ('CASS') for verification of specific information obtained from third party sources which apparently did not match with the details submitted by the tax saver in the return of-income.

Therefore, for proper administration of the Income-tax Act, 1961 ('Act'), Central Board of Direct Taxes, by virtue of its powers under sect on 119 of the Act, in suppression of earlier instructions/guidelines on this subject, hereby directs that the cases selected for scrutiny during the Financial Year 2014-20(15 under CASS, on the basis of either AIR data or CIB information or for non re-con'lliation with 26AS data the scope of enquiry should be limited to verification of these circular aspects only. Therefore, in such cases, an Assessing Officer hall confine the questionnaire and subsequent enquiry or verification only to the specific point(s) on the basis of which the particular return has been selected for scrutiny.

The reason(s) for selection of cases under CASS are displayed to the Assessing Officer in AST application and notice u/s 143(2), after generation from AST, is issued to the taxpayer with the remark 'Selected under Computer Aided Scrutiny Selection (CASS)". The functionality in AST is being modified suitably to flag the reasons for scrutiny selection in AIR/CIB/26AS cases. This functionality is expected to be operational by 15 th October, 2014. Further, the Assessing Officer while issuing notice under section 142(1) of the Act which is enclosed with the first questionnaire would proceed to verify only the specific aspects requiring examination/verification. In such cases, all efforts would be made to ensure that assessment proceedings are completed expeditiously in minimum possible number of hearings without unnecessarily dragging the case till the time-barring date.

In case, during the course of assessment proceedings, it is found that there is potential escapement of income exceeding Rs. 10 lakhs (for non-metro charges, the monetary limit shall be Rs. 5 lakhs) on any other iss e(s) apart from the AIR/CIB/26AS information based on which the case was selected under CASS requiring substantial verification, the case may be taken up for comprehensive scrutiny with the approval of the Pr. CIT/DIT concerned. However, such an approval shall be accorded by the Pr. CIT/DIT in writing after being satified about merits of the issue(s) necessitating wider and detailed scrutiny in the case. Cases so taken up for detailed scrutiny shall be monitored by the it. CIT/Addl. CIT concerned.

The contents of this Instruction should be immediately brought to the notice of all concerned for strict compliance.

Download 26AS mismatch Scrutiny Notification (Click Here)

CBDT mandates to issue even NIL TDS Certificate by deductors - 9th Amendment with New Form No. 13.

As per the provisions of the Income-tax Act, 1961 (‘the Act’), CBDT has issued a notification on 24th Sept., 2014 regarding issuing of TDS Certificate to TDS Deductee.  In this notification CBDT mandates to issue TDS Certificate by TDS Deductor to TDS Deductee even NIL TDS.  Income Tax Department has been made 9th Amendment Rule, 2014 and amended in Rule 28AA by substitution a New Form No. 13.  The Form No. 13 is an application by a person for a certificate u/s. 197 and/or 206C(9) of the Income Tax Act, 1961 for no Deduction/collection of Tax or Deduction/collection of Tax at a lower rate.

The Central Board of Direct Taxes (‘the Board’) vide notification dated 24th Sep., 2014 amended the following by section 295 read with section 197 of the Income Tax Act, 1961 (43 of 1961) :

1. (1) These rules may be called the Income-tax (9thAmendment) Rules, 2014.
   (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962,—
   (a) in rule 28AA, for sub-rule (4) and sub-rule (5), the following sub-rules shall be substituted, namely:-
“(4) The certificate for no deduction of tax shall be valid only with regard to the person responsible for deducting the tax and named therein.
(5) The certificate referred to in sub-rule (4) shall be issued direct to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate.
(6) The certificate for deduction of tax at lower rate shall be issued to the person who made an application for issue of such certificate, authorising him to receive income or sum after deduction of tax at lower rate.”;

Download CBDT mandates issue of nil TDS certificate Notification (Click Here)

Download Appendix-II, for Form No.13 (Click Here)

CBDT extended due date of Income Tax Return File in Audit Cases extended to 30th Nov.,2014

CBDT extended due date for filing of return to November 30, 2014; no extension to Cos/Firms not liable to tax audit

CBDT has extended due date for filing of return to November 30, 2014; no extension to Cos/Firms not liable to tax audit for Asstt. Year 2014-15 by order u/s. 119 of the Income tax Act, 1961 vide F.No. 153/53/2014-TPL (Pt.I) dated 26th Sep., 2014 which is as under :

    Section 44AB of the Income-tax Act, 1961 („the Act.) read with rule 6G of the Income-tax Rules, 1962 („the Rules.) requires certain persons to file tax audit report in Form No.3CA/Form No.3CB along with prescribed particulars in Form No.3CD. Vide Notification No. 33/2014 dated 25th July, 2014, the forms for filing tax audit report have been revised. As per section 44AB of the Act, the tax audit report has to be obtained and furnished electronically by 30th November of the Assessment year in case of an assessee who is required to furnish report under section 92E of the Act and 30th September of the Assessment year in case of other assessees.

    In view of the representations received by the Central Board of Direct Taxes („the Board.), the due date for obtaining and furnishing of tax audit report under section 44AB of the Act for assessment year 2014-15 in respect of assessees who are not required to furnish report under section 92E of the Act has been extended from 30th September, 2014 to 30th November, 2014 vide Order No.133/24/2014-TPL dated 20th August, 2014 in exercise of power of the Board under section 119 of the Act. It has been further clarified that the tax audit report filed during the period from 01.04.2014 to 24.07.2014 in the pre-revised forms shall be treated as valid tax audit report under section 44AB.

    After the extension of the due date for obtaining and furnishing of tax audit report under section 44AB of the Act, a number of representations have been received in the Board requesting for extension of due date for furnishing of return of income for the assessees who are required to obtain and furnish tax audit report under section 44AB of the Act and for whom the due date for furnishing return of income under section 139(1) of the Act is 30th September, 2014. Writ petitions have also been filed in various High Courts for directing the Board to extend the due date for furnishing of return of income from 30th September, 2014 to 30th November, 2014 in conformity with the extension of the due date for filing of tax audit report.

    In the High Court of Delhi, a writ petition No.5990/2014 has been filed on this issue. However, before the pronouncement of judgement, the petitioner withdrew the writ petition on 23rd September, 2014. The High Court of Madras passed interim order on 24.09.2014 in writ petitions No.25443 and 26306 to 26310 of 2014 and directed the Board to consider the request of the assessees in general and consider the extension of time for furnishing the return of income, in tune with the order passed by the Board in F. No.133/24/2014-TPL dated 20.08.2014. It has been reported that the High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh disposed the writ petition No.28159 and 28627 of 2014 with a direction to the Board to dispose of the representation of the petitioners. The High Court of Bombay disposed of writ petition No.2492 of 2014 vide order dated 25.09.2014 and directed the Board to look into the practical difficulties of the petitioners and take a just and proper decision in this matter.

    The Gujarat High Court allowed Special Civil Application No.12656 of 2014 with Special Civil Application No.12571 of 2014 and vide judgement dated 22.09.2014 directed the Board to modify the order under section 119 of the Act dated 20.08.2014 by extending the due date for furnishing the return of income to 30th November, 2014. It has also been further stated in the said order that it would be open for the Board to qualify such relaxation by extending the due date for all purposes, except for the purpose of Explanation 1 to section 234A of the Act.

    In compliance to the judgement of High Court of Gujarat and after considering the representations made for extension of due date for furnishing of return of income in compliance with the directions of the other High Courts, the Board, in exercise of power conferred by section 119 of the Act, hereby extends, subject to para 7 below, the `due-date‟ for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the assessment year 2014-15 for all purposes of the Act, in case of an assessee, who,
  • is required to file his return of income by 30th September, 2014 as per clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, 1961; and
  • is also required to get his accounts audited under section 44AB of the Act or is a working partner of a firm whose accounts are required to be audited under section 44AB of the Act.
    There shall be no extension of the “due date” for the purposes of Explanation 1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act.

    For removal of doubt, it is clarified that for an assessee (other than working partner of a firm which is required to obtain and furnish tax audit report), who is required to file its return of income by 30th September, 2014 but not required to obtain and furnish tax audit report under section 44AB, the due date for furnishing of return of income for assessment year 2014-15 remains as 30th September, 2014.

Download Circular to Extends due date of Income Tax Return file in Audit Cases (Click Here)

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