Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

Investment should be made within six calendar months & not 180 days for claiming benefit of section 54EC

Section 54EC, read with section 263, of the Income-tax Act, 1961 - Capital gains - Not to be charged on investment in certain bonds (Computation of time period) - Assessment year 2011-12 - Whether for purpose of section 54EC, term 'month' means calendar month and not period of 30 days - Held, yes - Assessee sold two properties vide sale deed, dated 15-2-2011 and deposited capital gain amount in REC Bond on 30-8-2011 - Whether six calendar months from date of sale deed would complete on 31-8-2011 and, therefore investment made by assessee on 30-8-2011 was within period of six months and assessee was entitled to benefit of section 54EC - Held, yes

Refer:[2020] 113 taxmann.com 586 (Kolkata - Trib.)
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Assessee can make fresh claim before AO during remand assessment proceedings

Section 254, read with section 144, of the Income-tax Act, 1961 - Appellate Tribunal - Powers of (Scope of order) - Assessment year 2002-03 - Assessing Officer passed best judgment assessment without examining books of account of assessee - Tribunal set aside said assessment and remanded matter to Assessing Officer to pass a fresh order after considering documents and submissions of assessee - During remand assessment assessee raised a fresh claim regarding non-taxability of income arising from write-off of liability by Canara Bank which was earlier offered as taxable income - Assessing Officer rejected said claim holding that in remand proceedings assessee could not raise a fresh claim - Whether since remand made by Tribunal to Assessing Officer was a complete and wholesale remand for framing a fresh assessment, Assessing Officer ought to have evaluated claim made by assessee for write-off of liability and should not have rejected same merely on ground of it being raised for first time - Held, yes - Whether matter was to be remitted back to Assessing Officer for evaluation of said claim on merits - Held, yes[In favour of assessee]

Refer:[2020] 113 taxmann.com 583 (Delhi)
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CBDT notifies Forms to exercise option under new regime of section 115BAA and 115BAB

MINISTRY OF FINANCE 
(Department of Revenue) 
(CENTRAL BOARD OF DIRECT TAXES) 
NOTIFICATION 
New Delhi, the 12th February, 2020 

INCOME-TAX 
G.S.R. 110(E).—In exercise of the powers conferred by section 115BAA and section 115BAB read with section 295 the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: - 

1. (1) These rules may be called the Income-tax (4th Amendment) Rules, 2020. 
    (2) They shall come into force on the 1st day of April, 2020.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 21AD, the following rules shall be inserted, namely: - 
“21AE. Exercise of option under sub-section (5) of section 115BAA.—(1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAA by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall be in Form No. 10-IC. 
(2) The option in Form No. 10-IC shall be furnished electronically either under digital signature or electronic verification code.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall-
(i) specify the procedure for filing of Form No. 10-IC; 
(ii) specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and 
(iii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.; 

21AF. Exercise of option under sub-section (7) of section 115BAB. (1) The option to be exercised in accordance with the provisions of sub-section (7) of section 115BAB by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall be in Form No. 10-ID. 

(2) The option in Form No. 10-ID shall be furnished electronically either under digital signature or electronic verification code. 
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall- 
(i) specify the procedure for filing of Form No. 10-ID; 
(ii) specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and 
(iii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.”. 
3. In the principal rules, in Appendix II, after Form No. 10-IB, the following Forms shall be inserted, namely: -FORM No. 10-IC and FORM No. 10-ID

[Notification No. 10/2020/F. No. 370142/34/2019-TPL]
 NEHA SAHAY, 
Under Secy. (Tax Policy and Legislation Division)
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More than 90% filed GSTR-9, GSTR-9C till 12th Feb: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) said that more than 90% of taxpayers have filed the GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) till 12th February 2020. 

The GSTR 9 is an annual return form for all assesses (except composition scheme assesses) while GSTR 9C is an audit report to be submitted by assesses with an annual turnover of two crores or more. 

The regular taxpayers who have an aggregate turnover of more than Rs 2 crore are mandated to file GSTR-9 and the other regular taxpayers who have aggregate turnover less than Rs 2 crore is optional. For filling of GSTR-9, filling of all due GSTR-1 and GSTR-3B is compulsory. The Taxpayers who have not filed GSTR-9 will not be able to file GSTR-9C. 

The number of Taxpayers who are mandated to file GSTR-9 is 12.42 lakhs and out of these taxpayers who have filed GSTR-3B and GSTR 1 is 9.8 lakhs and out of 9.8 lakhs, the number of taxpayers who have filed GSTR-9 is 9.11 lakh and the number of taxpayers who have filed GSTR-9C is 8.42 lakhs.

 Apart from these 32.92 lakhs taxpayers who are not mandated to file GSTR-9 have filed it. Similarly, apart from above, 1.04 lakhs taxpayers who are not mandated to file GSTR-9, have filed the same. 

The Tax Bar Association and Others have filed a writ petition before the High Court of Rajasthan at Jodhpur, also claimed that many of its members could not access the portal and, even if they managed to furnish, they could not furnish the returns on time. 

The government also is anticipating that with these changes and the due date extension, all taxpayers would comfortably be able to file their Annual Returns (GSTR-9) along with their Reconciliation Statement (GSTR-9C) for the financial year 2017-18 as well as 2018-19 in time. 

The due date of filing returns for fiscal 2017- 2018 was extended in a staggered manner for various states until 12th February 2020.

Read more at: https://www.taxscan.in/gstr-9-gstr-9c-annual-return-reconcillation-statement-cbic/48996/
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CBDT notifies the Rule to make PAN inoperative if it is not linked with Aadhaar

MINISTRY OF FINANCE 
(Department of Revenue) 
(CENTRAL BOARD OF DIRECT TAXES) 
NOTIFICATION 
New Delhi, the 13th February, 2020 
G.S.R. 112(E).—In exercise of the powers conferred by proviso to sub-section (2) of section 139AA read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:- 
1. Short title and commencement. - (1) These rules may be called the Income-tax (5th Amendment) Rules, 2020. 
(2) They shall come into force from the date of their publication in the Official Gazette. 

2. In the Income-tax Rules, 1962, after rule 114AA, the following rule shall be inserted, namely:- 

“114AAA. Manner of making permanent account number inoperative. (1) Where a person, who has been allotted the permanent account number as on the 1st day of July, 2017 and is required to intimate his Aadhaar number under sub-section (2) of section 139AA, has failed to intimate the same on or before the 31st day of March, 2020, the permanent account number of such person shall become inoperative immediately after the said date for the purposes of furnishing, intimating or quoting under the Act. 

(2) Where a person, whose permanent account number has become inoperative under sub-rule (1), is required to furnish, intimate or quote his permanent account number under the Act, it shall be deemed that he has not furnished, intimated or quoted the permanent account number, as the case may be, in accordance with the provisions of the Act, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the permanent account number. 

(3) Where the person referred to in sub-rule (1) has intimated his Aadhaar number under sub-section (2) of section 139AA after the 31st day of March, 2020, his permanent account number shall become operative from the date of intimation of Aadhaar number for the purposes of furnishing, intimating or quoting under the Act and provisions of sub-rule (2) shall not be applicable from such date of intimation. 

(4) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the formats and standards along with the procedure for verifying the operational status of permanent account number under sub-rule (1) and sub-rule (2).”. 

[Notification No.11/2020/F.No. 370149/166/2019-TPL] 
ANKUR GOYAL, 
Under Secy.
Refer:www.taxmann.com/
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CBDT introduces instant allotment of PAN on basis of Aadhaar

CBDT introduces instant allotment of PAN on basis of Aadhaar

The Finance (No. 2) Act, 2019 introduced the concept of interchangeability of PAN with Aadhaar by inserting a new sub-section (5E) in Section 139A. The new provision enables an assessee to quote his Aadhaar in lieu of PAN and he shall be automatically allotted a new PAN. The necessary changes for allotment of PAN on basis of Aadhaar have been made in the Rule 114 vide Income-tax (Fifth Amendment) Rules, 2019, w.e.f. 1-9-2019. The CBDT has, accordingly, taken the first step in this direction. A new functionality has been enabled on the e-filing portal which allots a PAN to the assessee on basis of his Aadhaar.
Finance Minister, Smt. Nirmala Sitharaman, has mentioned about this functionality in in her budget speech 2020. The new functionality instantly allots a PAN on the basis of Aadhaar without any requirement for filing up of detailed application form and it is free of cost. An electronic copy of PAN so allotted can also be downloaded instantly.
This facility can be used by an assessee only if the following conditions are fulfilled:
  1. He has never been allotted a PAN;
  2. His mobile number is linked with his Aadhaar number;
  3. His complete date of birth is available on the Aadhaar card; and
  4. He should not be a minor on the date of application for PAN
How to get instant PAN using this functionality?
  1. Go to https://www.incometaxindiaefiling.gov.in/home and click on the link 'Instant PAN through Aadhaar' given on the right hand side
    2. Click on 'Get New PAN'
  3. Enter the Aadhaar No. of the Applicant
  4. Enter the OTP received on the mobile number linked with the Aadhaar No.
  5. Validate the Aadhaar Details
  6. Validate Email-id
  7. Download the e-PAN
Refer:www.taxmann.com/
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Rajasthan HC grants bail to Chartered Accountant accused of wrongly availing Input Tax Credit

The Rajasthan High Court has granted bail to Paridhi Jain, a Chartered Accountant accused, based in Jaipur who was involved in the wrongful availing of Income Tax Credit (ITC).

As per the state tax department’s anti-evasion wing, she and her accomplice from Jodhpur Gaurav Maheshwari registered over 2 dozen firms and embezzled GST amounting to an approximate Rs. 17 Crore. The scam came into light when Gaurav was I was picked up by police following a complaint by his drive who claimed that his documents were used without his knowledge by Gaurav for registration of a shell firm.

Justice Vinit Kumar Mathur, while granting the bail observed, “Having regard to the facts and circumstances of the case and upon a consideration of the arguments advanced and the fact that the petitioner is a practising Chartered Accountant and a lady of 27 years is facing incarceration for last more than one month and in view of the undertaking submitted by the petitioner to fully cooperate with the investigating agency and provide the information/documents asked for by the investigating agency, this Court is of the opinion that the bail applications filed by the petitioner deserve to be accepted.”

The Chartered Accountant accused was released on bail on the conditions of surrender of passport before the investigating authority and a personal bond of Rs 10,00,000/- and two sureties of Rs10,00,000/- each with one surety being a close family member.

Read more at: https://www.taxscan.in/rajasthan-hc-grants-bail-chartered-accountant-accused-wrongly-availing-input-tax-credit/48483/
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Interest payable on Delayed Tax to be calculated on Total Tax Liability as filed in GSTR-3B: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has said that taxpayers who have filed their returns in GSTR-3B Form are required to pay interest on the total amount of tax liability shown in the form.

The CBIC issued such notice after doubts were raised by field formations, whether the interest has to be paid on gross tax liability or on the net cash liability. The GSTR-3B Tax Liability notice stated section 50 (1) of the Central Goods and Service Tax (CGST) Act and stated that the provision is very clear on the tax liability in this regard.

The Board has requested all Principal Chief Commissioners and Chief Commissioners of Central Tax to look into the issue personally and to urge the field formations under their jurisdiction for making recovery of applicable interest from the identified taxpayers and to furnish a weekly report of GSTIN wise recovery of interest made in this regard.

Read more at: https://www.taxscan.in/interest-payable-delayed-tax-calculated-total-tax-liability-filed-gstr-3b-cbic/48560/
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CA Atul Gupta elected as New President of ICAI

The Institute of Chartered Accountants of India ( ICAI ) has elected CA Atul Gupta as the President for the term 2020-21. CA Nihar Jambusaria is elected as the Vice President of the Institute. 

The tenure of the current President CA Prafulla P. Chhajed has expired this February. 

CA Atul Kumar Gupta has been elected as President of the Institute of Chartered Accountants of India for the term 2020-21 on 12th February 2020. Having served the profession for about two decades, he joined the Central Council of ICAI in 2013 wherein he remained a member for two consecutive terms, i.e. 2013-16 and 2016-19. He got elected as Vice-President in February, 2019 for the term 2019-2020. 

Widely respected for his strong organizational skills and deep insight into the affairs of the profession, CA. Atul Gupta has immensely contributed to the cause of profession in the last two Councils. 

A Commerce and a law graduate by education, CA. Atul Gupta has imbibed a unique perspective to view and critically address the matters. He has led the cause of profession through various committees of the Institute, serving as Chairman of Digital Accounting and Assurance Board, Board of Studies, IT Committee and Indirect Taxes Committee, among others. 

CA. Atul Gupta is known and appreciated widely for his key contribution as the facilitator of the Goods and Service Tax regime, particularly in its formative years. Under his stewardship at Board of Studies, the New Scheme of Education and Training that was benchmarked with the revised International Education Standards was launched in 2017, with a thorough revision of the content of the study materials of Intermediate and Final level courses.

He, earlier, has been the Chairman of SAFA Committee on Education, Training & CPD and Director of XBRL India and ICAI-Accounting Research Foundation (ARF) in the past. 

Through ICAI-ARF, he is credited for the promotion of the agenda of research in the profession. After anchoring the ICAI-ARF team in the project of preparation of accrual-based financial statements of the North-Western Zonal Railways for the year 2014-15, CA. Gupta has mentored the team in the project of preparation of accrual-based financial statements of the Indian Railways for the years 2015-16 and 2016-17. Under his Chairmanship in the year 2010-11, the Northern India Regional Council of the Institute got the Best Regional Council award. 

As Vice-President of the Institute, CA. Gupta acted as Vice-Chairman of all Standing Committees including Executive, Finance and Examination Committees, besides being the ex-officio member of all Non-Standing Committees and Joint Editor of ICAI Journal, The Chartered Accountant. He is a Director in the Governing Board of Indian Institute of Insolvency Professionals of ICAI. CA. Gupta is also Vice Chairman on the Board of the Extensible Business Reporting Language (XBRL) India and Director in ICAI Accounting Research Foundation. 

He symbolises the transformational perspective which is going to be crucial for the relevance of all economic entities and more particularly regulators so that the transformation addresses the expectation gap while being focal to upholding transparency, probity and trust as the guiding virtues for the work programme of ICAI in times to come. Being the ardent reformer; he has a holistic grasp on the imperative of digital transformation, the developments taking nationally and globally in regard to accountancy profession and through his experience in public life all over two decades; he intends to metamorphize the overall regulatory perspective as laid under the enabling Act and Regulation governing the Chartered Accountancy profession. 

Read more at: https://www.taxscan.in/ca-atul-gupta-elected-new-president-icai/48557/
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Income Tax Department launches E-Calculator; Aims to Assist Tax payers in choosing Old or New Tax Slabs

The Income-Tax Department has launched an e-calculator for individuals to estimate their tax liability. 

It can be utilized by taxpayers who opt for the new tax slabs, as announced in the recent Budget, without claiming deductions and exemptions, for Income Tax Returns filing. 

The e-calculator comes with a comparative table to help resident individuals (the financial year 2020-21) compare taxes in the old and the new tax regime. Taxpayers in three age categories, namely normal citizen (below 60 years), senior citizen (60-79 years) and super senior citizen (above 79 years) can fill in their estimated annual income from all sources, total eligible deductions and exemptions to analyze what will there total taxable income be if they continue in the old regime or opt for the new one. 

The calculator takes into account eligible exemptions and deductions, as proposed under the new regime, after being extracted from the Budget memorandum 2020. 

It has been hosted on the official e-filing website of the department.

Read more at: https://www.taxscan.in/income-tax-department-e-calculator-tax-payers-tax-slabs/47792/

Can be opened through the below link:-
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