Important Dates of September-2014 for Taxpayee and Others.

Important dates in the month of September-2014 for TDS/TCS Deposit, Service Tax Payments, Payment of VAT, Income Tax Audit of Wealth Tax etc.

All the income tax due dates, last dates, in the month of September-2014. The due dates includes all TDS Returns, TDS Statements, income tax returns, income tax payments & TDS certificates along with form name and period. The assessee can find their obligation toward income tax department through this income tax calendar which is as below:






Due Date
Related Department
Particulars
05.09.2014
Service Tax
Payment of Service Tax for the Month of August 2014
07.09.2014
TDS/TCS
(Income Tax)
Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of August 2014.

Deposit TDS from Salaries  deducted during the month of August 2014

Deposit TCS for collections made under section 206C including sale of scrap during the month of August 2014, if any

Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of August 2014, if any
15.09.2014
Income Tax
Payment of second instalment of advance tax (45%) for corporate
20.09.2014
STPI
Filing of monthly softex forms
20.09.2014
VAT
Payment of VAT & filing of monthly return for the month of August 2014
30.09.2014
Income Tax
Income Tax  and Wealth Tax Return filing along with tax audit report excluding Transfer pricing


Income Tax Authorities constitute a committee for transfer cases w.e.f. 01.04.2012

Income Tax Authorities has published a press released on 02.09.14 u/s. 119 of Income Tax Act, 1961 to constitute a Committee for approval to tax indirect transfer cases for income arising before 01.04.2012, which is as under:

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

PRESS RELEASE

New Delhi, the 2nd September, 2014

The Finance Minister in his budget speech on 10th July, 2014 had made an announcement that all fresh cases arising out of the retrospective amendments of 2012 in respect of indirect transfer and coming to the no tice of Assessing officer will be scrutinized by a High Level Committee to be constituted by Central Board of Direct Taxes (CBDT) before any action is initiated in such cases.

2. The CBDT in exercise of powers conferred under section 119 of the Income-tax Act, 1961 has issued an Order No.149/141/2014-TPL dated 28th August, 2014 constituting the High Level Committee consisting of the officers of CBDT. The Committee includes Joint Secretary, (FT&TR-I), Joint Secretary (TPL-I) and Commissioner of Income-tax (ITA). Further, the Director (FT&TR-I) will be the Secretary of the Committee. The Order is available on official website of Income-tax Department at http://incometaxindia.gov.in.

3. Henceforth, in all fresh cases where income on account of retrospective amendments to the provisions related to indirect transfer is considered to accrue or arise before the 1st April, 2012, the Assessing Officer shall be required to seek prior approval of any proposed action in this regard from the Committee. The Committee shall, after provident an opportunity to the taxpayer, issue appropriate directions to the Assessing Officer in a time bound manner. The Committee would be required to submit periodic report to the CBDT. The CBDT may intervene in the working/deliberations of the Committee, as and when required.

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

Jan-2015 Additional D.A. shall be increased by 5 to 7 points i.e. 112% to 115%.

As per below Press Release of Consumer Price Index For Industrial Workers of Government of India, Ministry of Labour and Employment Dated 29th August, 2014, it is confidently say the Additional Dearness Allowance from January 2015 will be increases by 5 to 7 percent.

No. 5/1/2014-CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU
`CLEREMONT’, SHIMLA-171004
DATED: the 29th August, 2014

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – July, 2014

The All-India CPI-IW for July, 2014 increased by 6 points and pegged at 252 (two hundred and fifty two). On 1-month percentage change, it increased by 2.44 per cent between June, 2014 and July, 2014 when compared with the rise of 1.73 per cent between the same two months a year ago.

The largest upward pressure to the change in current index came from Food group contributing 4.42 percentage points to the total change. The House Rent index further accentuated the overall index by 1.08 percentage points. At item level, Rice, Eggs, Milk, Onion, Chillies Green, Tomato, Potato and other Vegetables & Fruits, Sugar, Tea (Readymade), Pan Finished, Doctors’ Fee, College Fee, Petrol, Rail Fare, etc. are responsible for the increase in index. However, this increase was restricted to some extent by Wheat, Soft Coke, Medicine (Allopathic), etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 7.23 per cent for July, 2014 as compared to 6.49 per cent for the previous month and 10.85 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 8.11 per cent against 5.88 per cent of the previous month and 14.10 per cent during the corresponding month of the previous year.

At centre level, Nagpur recorded the maximum increase of 12 points followed by Ludhiana (10 points). Among others, 9 points rise was observed in 7 centres, 8 points in 3 centres, 7 points in 9 centres, 6 points in 23 centres, 5 points in 14 centres, 4 points in 10 centres, 3 points in 4 centres, 2 points in 4 centres and I point in 2 centres.

The indices of 35 centres are above and other 41 centres are below national average. The indices of Ernakulam and Varanasi are at par with all-India index.

The next index of CPI-IW for the month of August, 2014 will be released on Tuesday, 30 September, 2014. The same will also be available on the office website www.labourbureau.gov. in.

(S.S.NEGI)
DIRECTOR

CPC (TDS) reminder for filing, where TDS has been paid, however, Quarterly TDS Statements are not filed.

As per the records of the Centralized Processing Cell (TDS), you have made payments for Tax Deducted, however, no TDS Statements have been filed for any Quarter in FY 2013-14 as yet. In this regard, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

If you are not required to submit the relevant statement, you are requested to submit a declaration by taking appropriate action as suggested under "Action to be taken" in this communication. Otherwise, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

1. Mandatory filing of TDS Statements:

Please refer to the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:

Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:
  • Statement of deduction of tax under section 192 in Form No. 24Q;
  • Statement of deduction of tax under sections 193 to 196D in-
     • Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
     • Form No. 26Q in respect of all other deductees.
It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

2. Implications of Non/ Late filing of TDS Statements:
  • For Deductors: In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the IT Act which reads as under:
     • Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues
  • For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees. They, therefore, will not be able to claim the credit for tax already deducted from the payments made to them. Please note that TDS Certificates will not be available until the TDS Statements are duly filed.
3. Actions to be taken:
  • Please file the relevant TDS Statement without any further delay.
  • If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to "Statements/ Payments" menu and submit details under "Declaration for Non-Filing of Statements".
  • Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.
For any 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.

CPC (TDS) TEAM

CBDT directs to maintain appointment schedule with taxpayers in case of Citizen's

CBDT has issued Office Memorandum u/s. 119 of Income Tax Act, 1961 regardinging Instructions to maintain the schedule of appoints with taxpayers in spirit of Citizen's Charter dated 22nd August, 2014 which is as under:

F.No.Dir(Hqrs.)/Ch.(DT)/29/2013
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
Room No.155, North Block, New Delhi,
Dated the 22nd August, 2014.

OFFICE MEMORANDUM

Subject: Instructions to maintain the schedule of appointments with tax payers etc.-reg.

It has been brought to the notice of the Board that some of the officers are issuing notices to the taxpayers/witnesses/representatives etc. indicating a standard time of appointment. Thus, many persons called for hearing etc. on a day by an officer are given the same time for appearance. Naturally the persons are made to wait for their turn. Such actions, apart from causing avoidable inconvenience to the taxpayers/witnesses/representatives etc. cause great embarrassment to the Government.

All the officers, are therefore, advised to strictly maintain the appointment schedule in spirit with the Citizen's Charter, 2014 of the Department which specifically provides that we (in the Department) endeavour "to adhere to the schedule of appointments with taxpayers". All the Supervisory officers, i.e. the CCsIT, CsIT and the Addl. CsIT are requested to ensure that officers reporting to them strictly comply with this instruction and avoid fixing multiple appointments at the same time. Instances of disregard to these instructions may be viewed seriously.

This issues with the approval of Chairman, CBDT.

sd/-
(Anil Uniyal)
Dir.(Hqrs.),CBDT

To
All Pr. CCsIT/Pr. DGsIT/ CCsIT/DGsIT for ensuring compliance in their respective jurisdiction.

Copy to: PSs to Chairman/Members /CBDT.

Demand u/s. 143(1) by Income Tax Department and Rectification thereof u/s. 154.

Income Tax Return filing season for certain class of assessees including individuals not falling under tax audit provisions has just been over and by now the Income Tax Department (the Department) has already started processing of these returns. In fact, return filing and processing thereof are an ongoing process for different class of assessees.
At times, income tax payers get intimation of demand from the Department u/s 143(1).
Following is the text of section 143(1) of the Income Tax Act, 1961;
“Where a return has been made u/s 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:—
(a)    the total income or loss shall be computed after making the following adjustments, namely:—
(i)    any arithmetical error in the return; or
(ii)    an incorrect claim, if such incorrect claim is apparent from any information in the return;
(b)    the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a);
(c)    the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement u/s 90 or section 90A, or any relief allowable u/s 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest;
(d)    an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and
(e)    the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee:
Provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax or interest is payable by, or no refund is due to, him:
Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made.
Explanation.— For the purposes of this sub-section,—
(a)  "an incorrect claim apparent from any information in the return" shall mean a claim, on the basis of an entry, in the return,—
(i)    of an item, which is inconsistent with another entry of the same or some other item in such return;
(ii)    in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or
(iii)    in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction;
(b)    the acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a).”
Most of such cases are generated due to discrepancy in income tax return and the documents on the basis of which such return is prepared including TDS certificates, Form 16/Form 16A or Form 26AS etc.

RECTIFICATION U/S 154
Taxpayers need not worry if they get such intimation u/s 143(1). Instead, they should try to understand the reason for the demand and act accordingly.
Income Tax Act provides for the rectification u/s 154 for the cases where demand has been intimated under above said section 143(1).
The text of section 154 is as under;
Rectification of mistake.
“154. [(1) With a view to rectifying any mistake apparent from the record an income-tax authority referred to in section 116 may,—
(a)  amend any order passed by it under the provisions of this Act ;
          [(b) amend any intimation or deemed intimation under sub-section (1) of section 143;]]
          [(c) amend any intimation under sub-section (1) of section 200A.]
[(1A) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.]
(2) Subject to the other provisions of this section, the authority concerned—
(a)    may make an amendment under sub-section (1) of its own motion, and
(b)    shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee [or by the deductor], and where the authority concerned is the [Commissioner (Appeals)], by the [Assessing] Officer also.
(3)    An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee [or the deductor], shall not be made under this section unless the authority concerned has given notice to the assessee [or the deductor] of its intention so to do and has allowed the assessee [or the deductor] a reasonable opportunity of being heard.
(4)    Where an amendment is made under this section, an order shall be passed in writing by the income-tax authority concerned.
[(5) Where any such amendment has the effect of reducing the assessment or otherwise reducing the liability of the assessee or the deductor, the Assessing Officer shall make any refund which may be due to such assessee or the deductor.]
(6)    Where any such amendment has the effect of enhancing the assessment or reducing a refund [already made or otherwise increasing the liability of the assessee or the deductor, the Assessing Officer shall serve on the assessee or the deductor, as the case may be] a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued u/s 156 and the provisions of this Act shall apply accordingly.
(7)    Save as otherwise provided in section 155 or sub-section (4) of section 186 no amendment under this section shall be made after the expiry of four years [from the end of the financial year in which the order sought to be amended was passed.]
[(8)    Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made by the assessee [or by the deductor] on or after the 1st day of June, 2001 to an income-tax authority referred to in sub-section (1), the authority shall pass an order, within a period of six months from the end of the month in which the application is received by it,—
(a)  making the amendment; or
(b)  refusing to allow the claim.]”
Therefore, the taxpayer should collect all relevant documents including Form 16 (in case of salaried employees), Form 16A, TDS Certificates, Form 26AS and Computation of total income etc.
On the basis of the above documents, a proper rectification request should be prepared and submitted to the income tax department.
PROVISION OF THE ACT WHERE TDS IS NOT DEPOSITED/WRONGLY DEPOSITED
It is emphasized that if the Tax Deducted at Source (TDS) credit is available in Form 26AS and the same has not been considered in the intimation letter u/s 143(1), the same shall be provided while processing the rectification request u/s 154.
However, The Income Tax Department may deny credit of TDS in cases where TDS is available in Form 16/Form 16A/TDS Certificates but not available in Form 26AS. Also in some cases employer/deductor may not have deposited the said TDS or deposited in wrong PAN number. In such cases, following provision of the Act shall be helpful to the taxpayer/professional;
Section 205 of the Act in clear terms, provides that the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income.
Text of section 205 is as follows;
“Where tax is deductible at the source under [the foregoing provisions of this Chapter], the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income.”

SOME IMPORTANT CASE LAWS WHERE TDS IS NOT DEPOSITED/WRONGLY DEPOSITED
There are various judgments of the different Hon’ble High Courts where it has been decided that if the TDS is reflecting in Form 16/Form 16A or TDS certificates or the fact of TDS deduction is established, then the Department must provide the credit of the same to the concerned assessee and he/she shall not be called upon to pay the tax again to the extent to which tax has been deducted.
Taxpayers/Professionals may take help of following case laws in above mentioned situations;
1.      Sumit Devendra Rajani Versus Assistant Commissioner Of Income Tax
In this recently decided case, Sumit Devendra Rajani Versus Assistant Commissioner of Income Tax, the Hon’ble High Court of Gujarat has decided as under;
“It is held that the petitioner assessee deductee is entitled to credit of the tax deducted at source with respect to amount of TDS for which Form No.16A issued by the employer deductor – M/s. Amar Remedies Limited has been produced and consequently department is directed to give credit of tax deducted at source to the petitioner assessee – deductee to the extent form no.16 A issued by the deductor have been issued. Consequently, the impugned demand notice dated 6.1.2012 (Annexure D) is quashed and set aside. However, it is clarified and observed that if the department is of the opinion deductor has not deposited the said amount of tax deducted at source, it will always been open for the department to recover the same from the deductor….”
2.      ACIT vs. Om Prakash Gattani (2000) 242 ITR 638.
In this case, the Hon’ble Gauhati High has decided as under;
“It would not be possible to proceed to recover the amount of tax from the assessee. The assessee cannot be doubly saddled with the tax liability. Deduction of tax at source is only one of the modes. Once this mode is adopted and by virtue of the statutory provisions the person responsible to deduct the tax at source deducts the amount, only that mode should be pursued for the purpose of recovery of tax liability and the assessee should not be subjected to other modes of recovery of tax by recovering the amount once again to satisfy the tax liability. It is, therefore, provided u/s 201 of the Income-tax Act that the person responsible to deduct the tax at source would be deemed to be an assessee in default in case he deducts the amount and fails to deposit it in the Government treasury. As observed earlier, the assessee has no control over such person who is responsible to deduct the income-tax at source, but fails to deposit the same in the Government treasury. In this light of the matter, in our view, the notices issued under Section 226(3) of the Income-tax Act to the bankers of the petitioner-respondent to satisfy the tax liability from the bank account of the petitioner-respondent are illegal. It is not that the Income-tax Department was helpless in the matter. The person responsible to deduct the tax at source would move into the shoes of the assessee and he would be deemed to be an assessee in default. Whatever process or coercive measures are permissible under the law would only be taken against such person and not the assessee.”
3.      Yashpal Sahni vs. ACIT (2007) 293 ITR 539.
Hon’ble Bombay High Court in this has observed as under;
“Although it is obligatory on the part of the person collecting tax at source to pay the said TDS amount to the credit of the Central Government within the stipulated time, if such person fails to pay the TDS amount within the stipulated time, then, Section 201 of the Act provides that such person shall be deemed to be an assessee in default and the revenue will be entitled to recover the TDS amount with interest at 12% p.a. and till the said TDS amount with interest is recovered there shall be a charge on all the assets of such person or the company. Penalty u/s 221 of the Act and rigorous imprisonment u/s 276B of the Act can also be imposed upon such defaulting person or the company. Thus, complete machinery is provided under the Act for recovery of tax deducted at source from the person who has deducted such tax at source and the revenue is barred from recovering the TDS amount from the person from whose income, tax has been deducted at source. Therefore, the fact that the revenue is unable to recover the tax deducted at source from the person who has deducted such tax would not entitle the revenue to recover the said amount once again from the employee-assessee, in view of the specific bar contained in Section 205 of the Act.”
4.      Smt. Anusuya Alva vs. Deputy Commissioner of Income Tax and Others (2005) 278 ITR 206 (Karn).
In this case Hon’ble Karnataka High Court has decided as follows;
“In the circumstances, I am of the view that the Revenue is to be definitely restrained in terms of
Section 205 of the Act from enforcing any demand on the assessee-petitioner insofar as the demand with reference to the amount of tax which had been deducted by the tenant of the assessee in the present case, and assuming that the tenant had not remitted the amount to the Central Government. The only course open to the Revenue is to recover the amount from the very person who has deducted and not from the petitioner.”
5.      Commissioner of Income Tax vs. Ranoli Investment P. Ltd. and Others (1999) 235 ITR 433(Guj).
The Hon’ble High Court of Gujarat in this case has decided as follows;
“As provided by s. 205 of the Act, where tax is deductible at source, the assessee shall not be called upon to pay the tax himself to the extent to which it has been deducted from the relevant income. Thus, from the aforesaid provisions it emerges that as soon as the tax is actually deducted at source by the person responsible to make payment, the liability of the assessee to pay that tax gets discharged and it is for the person who has deducted the tax at source to deposit the same with the Government.”

TDS Applicability on Custom House Agent & Principal Payment.

TDS applicable under Head of Custom House Agent Bill on Status of Agent, which are as under:

U/s. 194C - Shipping Line Charges, Stamp Duty, Insurance etc.,
U/s. 194J - Survey and
U/s. 194C - CFS Charges, Cargo Transportation, Uploading Charges etc.

Condition 1 : If CHA Service Charges & Reimbursement Charges Bill Are Separate.

If Bill is Separate then TDS is not applicable to CHA but if we lift the veil because of "CHA is agent only" then expense addressed to Principal Company, then This Principal Co. is liable to deduct TDS on these expenses and Co. should book expense on respective head. However Mode of deduction is not prescribed because all payment are routing through agent,  but Co. should advise to agent to pay them ( respective exp ) net amount which is after deduction amount  and claim only net amount for using his cash flow on behalf of Co,  and Co. should transfer to CHA after tds deduction on that part the same net amount.

Condition 2 : If CHA Service Charges & Reimbursement Charges Bill Are Not Separate and it is Consolidated Bill

If Bill is not Separate then TDS is applicable on whole amount including this reimbursement amount irrespective of this, that he is agent. However expense head Co. should book expense head, as per their nature.  Applicability of section will be 194C however department is asking some time it u/s 194J. Company can go ahead with 194C also based on judgement of time

TDS applicable under Head of Custom House Agent Bill on Status of Principal, which are as under:

U/s. 194C - Handling Charges, Service Charges etc.

Condition 1 : If CHA Service Charges & Reimbursement Charges Bill Are Separate.

TDS is applicable on this part in all case. As a Industry Practice they are deducting u/s 194C, but department is asking in many survey u/s 194J. Principal Co. can go ahead with 194C also based on judgement of time

Fixation of pay of State Government Employees on their appointment in Central Government

Fixation of pay of State Government Employees on their appointment in Central Government, subsequent to implementation of CCS (RP) Rules, 2008.

No.12/1/2009-Estt (Pay-I)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

New Delhi the 28th August, 2014

OFFICE MEMORANDUM

Subject: Fixation of pay of State Government Employees on their appointment in Central Government, subsequent to implementation of CCS (RP) Rules, 2008.

The undersigned is directed to say that the method of fixation of pay of State Government employees on their appointment under the Central Government has been spelt out in this Department's OM No.12/1/94-Estt(Pay-I) dated 24 March, 1994, 3rd January, 1996 and OM NO.13/2/99-Estt (Pay-I) dated 18.6.2001.

2. The question of fixation of pay in cases of appointment from State Govt. to Centrat Govt. consequent upon revision of pay scales on acceptance of the recommendations of the VI Central Pay Commission in the revised pay structure has been considered in consultation with the Department of Expenditure and the President is pleased to decide that in cases of appointment of State Government employees in Central Government on or after 1.1.2006, pay will be fixed in the following manner:-

(a) Where the State Government has revised the Pay scales of their employees on the pattern of VI Central pay Commission at the base index of 115.76 as per AICPI (IW) 2001 series w.e.f. 1.1.2006 the pay of these State Government employees on their appointment under the Central Government would be fixed as follows:

(i) When the appointment is to a post carrying higher Grade Pay, one increment equaI to 3% of the sum of the pay in the existing grade pay will be computed and rounded off to the next multiple of 10. This will then be added to the existing pay in the pay band. The grade pay corresponding to the higher post will thereafter be granted in addition to this pay in the pay band. In cases where the appointment involves change in pay band also, the same methodology will be followed. However. if the pay in the pay band after adding the increment is less than the minimum of the higher pay band to which the appointment is takihg place, pay in the pay band will be stepped up to such minimum.

(ii) Where the appointment is to a post involving identical Grade Pay, the individual shall continue to draw the same pay.

(b) Where the State Government have revised the pay scales of their employees after 1.1.2006 beyond the base index of 115.76 as per AICPI (IW) 2001 series, basic pay of the employees is to be determined first in the Central Scale by reducing the element of DA, ADA, IR etc. granted by the State Government after 1.1.2006 (beyond the base index of 115.76 as per AICPI (IW) 2001 series) and thereafter the pay would be fixed as provided in the clause (i) &(ii) under sub para (a) above.

(c) Where the state Government have either not revised or revised the pay scale of their employees on or after 1.1.2006 below the base index of 115.76 as per AlCPl (IW) 2001 series, basic pay of these employees shall be determined first in the Central scale, by adding the element of D.A. ADA upto base index of 115.76 as per AICPI (IW) 2001 series granted by the State Government and thereafter their pay would be fixed as provided in the clause (i) &(ii) under sub-para (a) above.

3. These orders are applicable to employees of the State Government and local bodies under the State including Emergency Divisional Accountants/Divisional Accountants / local bodies under the State Government appointed under Central Government on or after 1.1.2006.

4. In so far as the employees serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.

5. Hindi version will follow.

sd/-
(Mukesh Chaturvedi)
Director (Pay)

Source: www.persmin.gov.in

CBDT constitutes committee to approve any action proposed by AO.

CBDT constitute committee vide order No. F.No. 149/141/2014-TPL Dt. 28.08.2014 under section 119 of the Income Tax Act which is as under:

F.No. 149/141/2014-TPL
Government of India
Department of Revenue
Central Board of Direct Taxes
(Tax Policy & Legislation Division)
***
New Delhi dated 28th August, 2014

Order under section 119 of the Income-tax Act

Vide the Finance Act, 2012, certain clarificatory amendments were introduced in clauses (14) and (47) of section 2, in clause (i) of sub-section (1) of section 9 and in section 195 of the Income-tax Act (“the Act”), with retrospective effect from 01.04.1962 in relation to transfer of assets. For the proper administration of these provisions of the Act, the Central Board of Direct Taxes (CBDT), in exercise of its power u/s 119 of the Act, hereby directs the following:-
1. A Committee consisting of following officers of the CBDT as Members is hereby constituted: -
   (i)   Joint Secretary (FT&TR-I)
   (ii)  Joint Secretary (TPL-I)
   (iii) Commissioner of Income-tax (ITA)
         The Director (FT&TR-I) shall be the Secretary of the Committee.
2. Where any Assessing officer considers that any income is deemed to accrue or arise in India before 1st April, 2012 through transfer of a capital asset situate in India in consequence of the amendments introduced with retrospective effect, and as on the date of this order,-
   (i)   no proceeding of assessment or reassessment in relation to the said income is pending; or
   (ii)  no notice for proposed assessment or re-assessment in relation to the said income has been issued; or
   (iii) no proceeding under section 201 of the Act is pending, or no notice for initiation of such proceeding has been issued in relation to the said income, then, before proceeding with any action in relation to the said income, the Assessing Officer shall seek prior approval of the Committee for the proposed action by making a reference to the Committee through the Principal Commissioner or the Commissioner concerned. The Assessing Officer shall forward a copy of the reference to the assessee.
3. All such references shall be addressed to the Secretary of the Committee, and it shall be the responsibility of the Secretary that the meetings of the committee are convened at appropriate time and intervals so as to effectively and expeditiously dispose of the references received by it.
4. The Committee, on receipt of the reference from the Assessing Officer, shall examine the proposed action of the Assessing Officer and, after providing an opportunity to the assessee, take a decision on the proposed action. The committee shall convey its decision in writing to the Assessing Officer with copy to the Principal Commissioner or the Commissioner concerned and the assessee. The Committee shall endeavor to decide the reference within 60 days of its receipt by the Secretary of the Committee. However, the Committee shall have due regard to any limitation period involved in the proposed action.
5. The Assessing Officer shall thereafter proceed in accordance with the directions of the Committee.
6. The Committee shall submit its report in respect of references decided by it in the relevant period to the CBDT through Member (IT) in the Proforma annexed as Annexure `A’ to this order. The CBDT may intervene in the working/deliberations of the Committee, as and when required. The first report shall be submitted in respect of period ending on 31/12/2014, and subsequent reports shall be submitted on half yearly basis (30th June and 31st December every year).

(Ashish Kumar)
Director (Tax Policy & Legislation)

Copy to:
1. The Chairman (CBDT), All Members, Central Board of Direct Taxes for information.
2. All Principal CCsIT for necessary action in respect of their region including circulation to all Assessing Officers.
3. The Director General of Income Tax (Admn), Mayur Bhawan, New Delhi.
4. DGIT (Systems) for putting up on Departmental Website.
5. Addl. DIT (DBC), for putting it on www.irsofficersonline.gov.in
6. Ms. Rekha Shukla, CIT (M&TP) of CBDT.
7. DIT (PR, PP & OL) for publicity.

(Ashish Kumar)
Director (Tax Policy & Leg islation)

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