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. CPC now is Withdrawing Notice u/s 139(9) with the remarks that it has been issued inadvertently. CBDT further extends the time for Linking PAN with Aadhaar from 31st December 2017 to 31st March 2018.

Direct tax mop-up jumps 19% to Rs 6.89 lakh cr this fiscal

Direct tax collections during the first nine-and-a-half months of the current fiscal have risen by 18.7 per cent to Rs 6.89 lakh crore, the tax department said today.

The collections till January 15, 2018 represent over 70 per cent of the Rs 9.8 lakh crore revenue target from direct taxes, the Central Board of Direct Taxes (CBDT) said in a statement.

"The provisional figures of direct tax collections up to January 15, 2018, show that net collections are at Rs 6.89 lakh crore which is 18.7 per cent higher than the net collections for the corresponding period last year," it said.

Gross collections (before adjusting for refunds) have increased by 13.5 per cent to Rs 8.11 lakh crore during April, 2017 to January 15, 2018.

Refunds amounting to Rs 1.22 lakh crore have been issued during this period.

Stating that there has been "consistent and significant" improvement in the position of direct tax collections during the current fiscal, the CBDT said the growth rate of total gross collections has improved from 10 per cent in Q1, to 10.3 per cent in Q2, to 12.6 per cent in Q3 and to 13.5 per cent as on January 15, 2018.

Similarly, the growth rate of total net direct tax collections has climbed up from 14.8 per cent in Q1, to 15.8 per cent in Q2, to 18.2 per cent in Q3 and to 18.7 per cent as on January 15, 2018.

The growth in corporate tax collections has risen from 4.8 per cent in first quarter of current fiscal to 10.1 per cent in Q3 and 11.4 per cent as on January 15, 2018.

Similarly, the growth rate of net corporate tax collections increased from 10.8 per cent in Q2 to 17.4 per cent in Q3 and to 18.2 per cent as on January 15, 2018.

Read more at:
//economictimes.indiatimes.com
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CIT can't make section 263 revision merely because he wasn’t satisfied with the view taken by AO

Where before completing assessment under section 143(3) an enquiry is conducted by Assessing Officer and he is satisfied with a reply given on a query raised, then Commissioner cannot intervene through revision for coming to a conclusion that assessment order passed by Assessing Officer was erroneous and prejudicial to interests of revenue for lack of or inadequate enquiry.

Refer:[2018] 89 taxmann.com 171 (Kolkata - Trib.)
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Delay in filing of ITR condoned as assessee was searching his brother swept away while crossing flooded river

Car by which assessee's elder brother was crossing a flooded bridge, was swept away in river due to force of flood water a month before date of for filing return - Case of assessee was that for months, he was repeatedly visiting site of accident for conducting searches for tracing his brother -Thus, audit under section 44AB was delayed and, ultimately, it could be completed only on 20-2-2008 and return was filed - Whether state of mind of petitioner due to tragic event had to be appreciated by Board (CBDT) and mere fact that business income of petitioner grew during relevant year would be no ground at all to deny relief to petitioner - Held, yes - Whether since circumstances were beyond control of assessee, his application to CBDT seeking relief under section 119(2) for condonation of delay in filing return of income, was to be reconsidered - Held, yes [Para 9] [In favour of assessee]

Refer:[2018] 89 taxmann.com 158 (Bombay)
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Face recognition for Aadhaar authentication from July 1: UIDAI

The Unique Identification Authority of India has decided to enable face authentication from July 1 this year.

An official statement said that face authentication will be enabled in ‘fusion mode’ on registered devices so that people facing difficulty in other biometric authentication (fingerprint and Iris) could easily authenticate.

According to the statement, face authentication provides additional option for all residents to have inclusive authentication. It shall be allowed only in fusion mode along with one more authentication factor combined with either fingerprint or Iris or one time password to be able to successfully authenticate an Aadhaar number holder. Face authentication shall also be allowed on a need basis.

This facility is going to help in inclusive authentication of those who are not able to biometrically authenticate due to their worn out fingerprints, old age or hard work conditions, the statement added.

Currently UIDAI provides two modes of biometric authentication i.e. fingerprint authentication and iris authentication. While most of the residents are able to authenticate using fingerprint or iris authentication, some residents face difficulty in successfully using biometric authentication using one of the modalities.

Refer:http://www.thehindubusinessline.com
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4 states using e-way system as pilot generating 1.4 lakh bills per day: GSTN

Four states currently implementing the electronic way bill (e-way) system as a pilot are generating 1.4 lakh bills per day on the GST Network (GSTN) portal. The remaining states will start operating the mechanism during the next fortnight, the IT backbone for GST said in a statement on Friday. Karnataka, Rajasthan, Uttarakhand and Kerala are currently using the system for a trial period up to January 31. All the states are required to roll out the full-fledged mechanism by February 1 as per the GST Council decision in December. Under GST, the transport of goods beyond 10 km and valued at over Rs 50,000 is required to be accompanied with a computer-generated way bill. This is expected to curb evasion as such movement would be recorded in the GSTN database.

“Taxpayers and transporters need not visit any tax office or check post as the e-way bill can be generated electronically in a self-service mode. The new system enables generation of e-way bill on the portal, through mobile App, through SMS and for large users using offline tool,” Prakash Kumar, CEO, GSTN, said.An e-way bill can be generated by a supplier, recipient or transporter. Those generating the e-way bill can enter the vehicle number, and the same can be updated in case of vehicle breakdown. An e-way bill with consignment should have the latest vehicle number which is carrying the said consignment, GSTN said. It added that a quick response (QR) code would also be provided on the e-way bill to facilitate quick verification.

Though the vehicles can still be stopped by tax officials for random checks, the official will have to upload the requisite report within the specified time. The facility for uploading a report in case of detention for more than 30 minutes by a tax officer is also provided to the transporter, GSTN said. Come February, transporters will not need separate transit passes for moving goods from one state to another as the e-way bill issued to them will be valid throughout India, the GST Network said on Friday.
Refer:http://www.financialexpress.com
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Sharp increase in prosecutions of tax evaders by Income Tax Department

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

New Delhi, 12th January, 2018

PRESS RELEASE 

Sharp increase in prosecutions of tax evaders by Income Tax Department 

The Income Tax Department has accorded the highest priority to tackle the menace of black money. With this objective in mind, the Department has initiated criminal prosecution proceedings in a large number of cases of tax offenders and evaders.
Prosecutions have been initiated for various offences including wilful attempt to evade tax or payment of any tax; wilful failure in filing returns of income; false statement in verification and failure to deposit the tax deducted/collected at source or inordinate delay in doing so, among other defaults.
During FY 2017-18(upto the end of November, 2017), the Department filed Prosecution complaints for various offences in 2225 cases compared to 784 for the corresponding period in the immediately preceding year, marking an increase of 184%. The number of complaints compounded by the Department during the current FY (upto the end of November, 2017) stands at 1052 as against 575 in the corresponding period of the immediately preceding year, registering a rise of 83%. Compounding of offences is done when the defaulter admits to its offence and pays the compounding fee as per stipulated conditions.
Due to the decisive and focused action taken by the Department against tax evaders, the number of defaulters convicted by the courts has also registered a sharp increase during the current fiscal. 48 persons were convicted for various offences during the current year(upto the end of November, 2017) as compared to 13 convictions for the corresponding period in the immediately preceding year, marking an increase of 269%.
A few illustrative cases are highlighted.
 i. A Dehradun Court convicted one defaulter for holding undisclosed foreign bank account and sentenced him to two years of imprisonment for wilful attempt to evade tax and to two years for false statement in verification alongwith monetary penalty for each default respectively.
ii. The Court of CJM, Jalandhar convicted a cloth trader with 2 years rigorous imprisonment for trying to cheat the Department by fabricating affidavits and gift deeds, in connivance with his advocate and witness, with the motive of evading tax. The Court, while awarding the sentence to the trader, also simultaneously awarded one year's imprisonment to the advocate notarizing the forged affidavit and also to the witness for aiding and abetting the serious offence.
iii. In Bengaluru, the MD of a company engaged in infrastructure projects was found guilty of non-deposit of TDS of over Rs. 60 lakh(within the prescribed time), and was sentenced to rigorous imprisonment of three months alongwith imposition of fine. Similarly, a Mohali resident was held guilty of non-deposit of TDS within prescribed time and sentenced to one year jail alongwith fine.
iv. In another case of Hyderabad, the Director of an infrastructure company was sentenced to rigorous imprisonment of six months and fine for wilful attempt to evade tax. She was simultaneously sentenced to rigorous imprisonment for six months alongwith fine for false statement in verification. v. The Economic Offences Court at Ernakulam sentenced an individual to rigorous imprisonment of three months for selling property to evade payment of taxes of about Rs. 76 lakh despite issuance of the tax recovery certificate by the Tax Recovery Officer.
vi. In yet another case reported from Agra, the Special CJM convicted one defaulter with imprisonment of one year & six months for wilful attempt to evade tax and for false statement in verification respectively alongwith fine.
The Income Tax Department is committed to carry forward the drive against tax evasion and action against tax evaders will continue in all earnest in the remaining part of the current Financial Year.

(Surabhi Ahluwalia) 
Commissioner of Income Tax 
(Media & Technical Policy) 
Official Spokesperson, CBDT.
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No move to scrap free services, clarifies IBA

The Indian Banks’ Association (IBA) has termed as false reports in some segments of social media that all free services of banks will be discontinued by January 20, 2018.
The Association, which is the apex body of all banks in the country, said such reports were based on misinformed communication, leading to spreading of false information.
In addition, IBA underscored that there is neither a move by banks for such a blanket removal of free services nor such a thing is being contemplated.
However, banks, looking at their commercial and operational costs would constantly examine and revise charges as the case may be.
“It is clarified by IBA that these rumours are baseless and false. Public should be careful and should not get misled by such messages. Such news are pure rumors and there are no fresh RBI instructions/guidelines on this,” said VG Kannan, Chief Executive, in a statement.
Source:http://www.thehindubusinessline.com
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CBDT to intimate about proposed income/loss adjustments prior to issuing intimation u/s 143(1)

The Central Board of Direct Taxes (CBDT) has decided to issue an intimation of the proposed adjustment to draw the attention of the taxpayer to difference identified while processing ITRs u/s 143(1)(a)(vi). If taxpayer failed to submit respond within one month of receiving such communication, then a formal intimation u/s 143(1)(a)(vi) would be issued.


Circular No. 01/2018
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi, the 10" of January, 2018

Order under section 119 of the Income-tax Act, 1961

Subject: Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-l to 6 & applicability of section 143(1)(a)(vi)-reg.-

Sub-clause (vi) of clause (a) of sub-section (1) of section 143 of the Income-tax Act, 1961 ('Act') as introduced vide Finance Act, 2016, w.e.f. 01.04.2017, while processing the return of income, prescribes that the total income or loss shall be computed after making adjustment for addition of income appearing in Form 26AS or Form 16A or Form 16 (the three Forms) which has not been included in computing the total income in the return . In this regard, CBOT has issued Instruction No.(s) 9/2017 dated 11.lD. 2017 & 10/2017 dated 15.11.2017 for identification of instances in which section 143(1)(a)(vi) of the Act may be invoked by CPC-ITR, Bengaluru on the basis of information contained in the ITR Form s 1 to 6.

2.     As intimations proposing adjustments in identified returns under section 143(1)(a)(vi) of the Act would be shortly issued by the CPC-ITR, Bengaluru, the process to be followed by the taxpayers for filing the response is as under:

2.1     Since section 143(1)(a)(vi) of the Act is being applied for the first time while processing the returns, it has been decided that before issuing an intimation of the proposed adjustment, initially an awareness campaign would be carried out to draw the attention of the taxpayer to such differences. This would be in form of an e-mail and SMS communication to the concerned taxpayer informing him about the variation in the tax-return vis-a-vis the information available in the three Forms and requesting him to submit response to the variation within one month of receiving the communication electronically. In case the taxpayer does not respond within the available time-frame or the response is not satisfactory, a formal intimation u/s 143(1)(a)(vi) proposing adjustment to the returned income would be issued to him. As per the second proviso to section 143(1)(a)(vi) of the Act, in a case where no response is received from the taxpayer within thirty days of issue of such an intimation, the proposed adjustment shall be made to the returned income. Therefore, it is of utmost necessity that the concerned taxpayer files a prompt, timely and satisfactory response to the awareness campaign or subsequent intimation proposing adjustment u/s 143(1)(a)(vi) of the Act.

2.2    The manner for furnishing re sponse by the taxpayer is as under:

For furnishing the response electronically, taxpayer is required to login in his account in the e-filing site and choose the option (View-Returns/Forms). In a case where communication/intimation has been issued to the taxpayer u/s 143(1)(a)(vi) of the Act, the status will be displayed in the dashboard as

'Response to Communication/intimation u/s 143(1)(a) is pending'. The taxpayer can click on the same and submit his response.

2.3     The scenario(s) for furnishing response are as under:

I.      Where upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of the Act, if the taxpayer fully agrees with the proposed adjustment, he is required to file a revised return in response .
II.     Where upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of the Act, if the taxpayer partially agrees with the proposed adjustment, he is required to (i) file a revised return for the part of the proposed adjustment with which he is in agreement & (ii) file a reconciliation statement (in the format to be provided by CPC-ITR on the e-filing site) for the part of the proposed adjustment with which he is not in agreement.
III.    Where upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of the Act, the taxpayer disagrees with the proposed adjustment, he is required to file a reconciliation statement (in the format to be provided by CPC-ITR on the e-filing site) in support of his contention.

3. Based upon response of the taxpayer as indicated in para 2.3 above and the information so available with the CPC-ITR, thereafter, such returns shall be taken up for processing by CPC-ITR as per provisions of section(s) 143(1), 143(1)(a)(vi) read with Instruction No.s 9 & 10/2017 of CBDT.

4. Hindi version to follow.


(ROHIT GARG)
Director-(ITA.II),CBDT

(F. No. 225/333/ 2017-ITA.II)






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Release of New FVU and RPU versions for TDS/TCS Returns

New TDS/TCS FVU versions has been released by NSDL.  FVU and RPU versions are applicable with effect from January 11,2018.

1. New FVU version for quarterly TDS/TCS (Electronic and Paper) statements as below:

a) FVU version 5.7 – Applicable for e-TDS /TCS statements pertaining to Financial Year 2010-11 onwards.

b) FVU version 2.153 - Applicable for e-TDS /TCS statements pertaining to Financial Year 2007-08 to 2009-10.

c) FVU version 2.1285 – Applicable for Paper TDS/TCS statements pertaining to Financial Year 2007-08 onwards.

The key features of new FVU versions are below :

A. Introductions of two new fields for Form 27EQ.

There are two new fields have been introduced under Form 27EQ which are applicable when PAN of Assesse (i.e. Deductee) is not available with the Filer (i.e. Deductor):

a) New Field ‘ Deductee is Non-Resident’ with the drop down option having value ‘Y’ (stands for yes) or ‘N’ (stands for no) is to be selected. (As per file format, the field number is 31 for this new field)

b) New Field ‘ Deductee is having Permanent Establishment in India’ with the drop down option having value as ‘Y’ or ‘N’. This field is only applicable when the value in the field ‘ Deductee is Non-Resident’ is ‘Y’ otherwise this field is not applicable . (As per file format, the field number is 32 for this new field).

The above referred validation are applicable for Regular and C3 type of correction (Update/delete/add deductee details ) pertaining to FY 2017-18 onwards.

B. Nature of remittance option present under deductee details for Form 27Q is made mandatory from FY 2013-14 onwards.

a) The nature of remittance field no. 32 under Annexure I (Deductee Details) is mandatory.

b) The above is applicable for Regular and C3 type of correction.

NSDL e-Gov Return Preparation Utility (RPU) version 2.2 is required to be used for preparation of e- TDS/TCS statements. The said RPU is made available at TIN website and can be downloaded from the link https://www.tin-nsdl.com/downloads/e-tds/eTDS-download-regular.html.

The aforementioned FVU and RPU versions are applicable with effect from January 11,2018. Statements validated with FVU version lower than 5.7, 2.153 and 2.1285 for TDS/TCS (Electronic and Paper) Statements will be rejected at Online SAM from the aforesaid date.
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Direct Tax Collections for F.Y. 2017-2018 show Growth of 18.2% up to December, 2017

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

New Delhi, 09th January, 2018

PRESS RELEASE 

Direct Tax Collections for F.Y. 2017-2018 show Growth of 18.2% up to December, 2017 The provisional figures of Direct Tax collections up to December, 2017 show that net collections are at Rs. 6.56 lakh crore which is 18.2% higher than the net collections for the corresponding period of last year. The net Direct Tax collections represent 67% of the total Budget Estimates of Direct Taxes for F.Y. 2017-18 (Rs. 9.8 lakh crore). Gross collections (before adjusting for refunds) have increased by 12.6% to Rs. 7.68 lakh crore during April to December, 2017. Refunds amounting to Rs.1.12 lakh crore have been issued during April to December, 2017. 

An amount of Rs. 3.18 lakh crore has been received as Advance Tax up to December, 2017 reflecting a growth of 12.7% over the Advance Tax payments of the corresponding period of last year. The growth in Corporate Income Tax (CIT) Advance Tax is 10.9% and that in Personal Income Tax (PIT) Advance Tax is 21.6%. 

(Surabhi Ahluwalia) 
Commissioner of Income Tax 
(Media & Technical Policy) 
Official Spokesperson, CBDT.
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