Have you paid tax on your interest income?

Have you paid tax on your interest income?

9:39 AM Add Comment
Preparing to file your tax return? Make sure you have included all the interest income earned during the year. Although interest earned from infrastructure bonds, fixed deposits and recurring deposits is fully taxable, taxpayers often ignore this income in their returns. "This is a common misconception. Almost nine out of 10 taxpayers go wrong in reporting their interest income," says Sudhir Kaushik, Co-founder of Taxspanner.com.

Almost 30% of the respondents to an online survey conducted by ET Wealth last year believed that the interest from infrastructure bonds and tax-saving fixed deposits was taxfree. Taxpayers also confuse the exemption for savings bank interest under Sec 80 TTA. Almost 29% of the respondents believed that interest of up to Rs 10,000 from bank FDs is tax free in a year.

Will more disclosures by MFs help investors? Find out

There is also a misconception that there is no need to report the income if the bank has deducted TDS. But TDS is only 10%, and if your income puts you in the 20% or 30% tax bracket, you have to pay additional tax. Of course, if the income is below the basic exemption limit, the TDS will be refunded when the investor files his return.

These mistakes can put taxpayers in a tight spot now. In a circular issued last week, the Central Board of Direct Taxes has asked taxpayers to correctly declare the interest income they earned during the year in their tax returns. "Such interest income should be shown in the return of income even in cases where Form 15G or 15H has been filed if the earning is not exempt under Section 10 of the Income-tax Act and the total income of the person exceeds the maximum amount not chargeable to tax," says the circular. For taxpayers up to 60 years, an income of Rs 2.5 lakh a year is not taxable. For senior citizens the limit is higher at Rs 3 lakh.

Don't think you can avoid reporting your interest income. If the interest exceeds Rs 10,000 in a year, the bank or bond issuer will deduct TDS and credit it to your PAN number in your Form 26AS. If you don't mention that TDS (and the income on which it was deducted) in your tax return, the computerised surveillance system in the tax department will immediately pick up the discrepancy. "Last year, the tax department sought information of all bank accounts held and taxpayers should not forget to include saving account interest from all of these in their tax returns. If you miss any, it amounts to concealment of information," says Archit Gupta, founder and CEO, ClearTax.in.

While Form 26AS shows only the TDS, the department can also track other deposits and interest payments received without TDS. "Information regarding interest earned by individuals and business entities on term deposit is filed with the Income Tax Department by banks including co-operative banks and other financial institutions and state treasuries," warns the circular.

Taxpayers should also note that the 10-figure alphanumeric PAN is under constant surveillance by the department. Almost every financial transaction requires PAN. Whenever someone makes a high value transaction or investment, it is mandatory for the bank, mutual fund, brokerage or credit card company to report it to the Income Tax Department. "Tax officials can peek into your financial life by just keying in 10 figures into their computerised database," says Delhi-based chartered accountant M.K. Agarwal.

The tax department is turning the heat on taxpayers who don’t report interest income. Don’t be under the misconception that interest earned is tax-free.

Source: Economic TImes
How Oberoi can revamp income and investments to cut tax by over Rs 1 lakh

How Oberoi can revamp income and investments to cut tax by over Rs 1 lakh

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By Sudhir Kaushik, Taxspanner.com

Rishi Oberoi, 40, has an annual pay package of over Rs 46 lakh but almost 13% of this goes into tax. Though his salary is quite tax-friendly,Taxspanner estimates that he can bring down his tax by over Rs 1 lakh by slightly tweaking his pay package, investing more for tax savings and taking a home loan.

Oberoi's company does not allow rejigging of the pay structure. If they put 10% of his basic into the NPS, his tax can come down by Rs 44,000. If he gets certain tax-free perks such as reimbursements for newspapers and periodicals, he can reduce his tax by another Rs 11,000.

He should also invest Rs 50,000 in the NPS to claim deduction under Section 80CCD(1b). It will cut his tax by another Rs 15,450. However, the investments in the NPS will be locked till he is 60. Oberoi gets a high house rent allowance but most of it gets taxed. He plans to take a loan to buy a house. If he claims Rs 2 lakh as deduction for the home loan interest, his tax will be cut by around Rs 15,000 (not a big cut because the HRA will be taxable). If he buys health insurance for himself and his children, he can save another Rs 3,000 in tax. Opting for debt funds instead of FDs will save him Rs 15,450 in tax.

How Oberoi can revamp income and investments to cut tax by over Rs 1 lakh

Source: Economic TImes
Cleared all your income tax dues? Only two days left to avoid penalty

Cleared all your income tax dues? Only two days left to avoid penalty

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BENGALURU: Have you received a notice from the I-T department seeking explanations on your previous year income that you have no clue about? The taxman has been turning on the heat on defaulters and non-filers. So, while you are preparing to file taxes for this year, make sure your old dues are clear and there are no back-logs or disputes in your returns from previous years.

In an advertisement published last week, the I-T department have alerted all those tax non-filers who have not filed their previous year returns. They have been asked to explain, e-file and pay the dues, if any. And the last date to reply is 31st March. A penalty of Rs 5,000 may be applicable to returns filed post the deadline.

While the replying to these notices is as easy as log-in on to the e-filing website and choosing an explanation from a drop-down menu, the complicated part is deciding which option applies to you.

"The non-compliance emails have been sent to taxpayers based on the information received from third parties such as banks, TDS returns and post offices," says Archit Gupta, Founder and CEO, ClearTax.in. The department is seeking further information on such particular transactions—incomes or investments that were not declared in the mentioned years' returns.

However, some of you must have received a notice even if you had filed a return. There is no need to panic. In that case, all you need to do is fish-out the acknowledgement number of your ITR for the year. Along with that you'll have to provide the date and mode of filing (paper or e-filing) as proof of your filing. However, after e-filing your return must also be verified. "If you did not verify your tax return or it was not verified timely; your return may have been considered 'invalid' or 'not submitted'. You may have to submit your return again," says Gupta.

The process gets a little stretched out if you did not file at all. You will have to select an appropriate response for non-filing. Your answer would depend on the source of your income/investment, taxability of it and other tax filed for the year.

High-value transactions are especially under the scanner. Also, a lot of taxpayers who invested in stock but had a total income below the taxable limit of Rs 2.5 lakh have received these notices. In some of these cases the taxpayer did not file as they incurred a loss on these share trading. "If their total income was below the taxable limit, they can select the option 'Income from transaction is below taxable limit' and in the comments section explain that there was a loss from the transaction and the ITR was not filed as the total income was taxable limit," says Gupta.

All taxpayers who have got these notices will have to recalculate their tax dues for the mentioned financial year and outstanding balances, if any, must be paid before replying to the notice. "While responding to the notices, the taxpayer will then have to mention under remarks that although return has not been filed but tax has now been duly deposited by them," says Gupta. The remarks section has a limit of 250 words where you must mention that you are willing to re-file if the AO desires so.

In your calculations say there are no dues, you will need proper paper work to back your claims. Bank statements, TDS certificates, share trading statements, calculations of investments matched with inflows, safely in records must be saved in case there is any further inquiry from the tax departments.

What's your Explanation?

Choose an appropriate explanation after identifying the transaction mentioned in your notice.

1.Self-Investment/ expenditure are out of exempt income: Select this option if the investment or expense is made out of exempt income. For example, proceeds of a long-term capital gain or insurance policy further invested.
Action needed: Calculate if there is any tax liability and pay up, if there are. Also, keep all the documents related to the transaction ready for review by the department.

2. Self-Investment/ expenditure are out of accumulated savings: This option is for queries related to accumulated savings such as bank accounts and deposits, proceeds from investments such as mutual funds, stocks, PF, etc.
Action needed: Re-calculate your tax liability on these savings. Rectify in case there was a mistake. Give details in remarks explaining in case there are no dues.

3. Self-Investment/ expenditure are out of gifts/ loans from others: If the transaction in question is made from money received as gift or loans from someone, this is the option to select.
Action Needed: Be extremely careful about the income-clubbing rules and tax-treatment of gifts and loans while calculating your liability. The regulations differ on the basis of your relationship with the source of gift/ loan, amount received and the occasion for receiving such a gift. Consult a professional if need be.

4.Self-Investment/ expenditure are out of foreign income: Opt for this if the investment in question was made from income earned from a source outside India.
Action needed: Have proofs of residential status, proof on income earned, and transaction proof (bank statement showing inflow and outflow of funds) asset/ investment-related and documents and the Tax Residency Certificate (TRC) for claiming relief under the Double Taxation Avoidance Agreements (DTAA).

5.Self-Income from transaction is exempt: Select this option if the income mentioned is an exempted under the I-T Act such as proceeds from insurance policy, long-term capital gains, PPF maturity money, etc.
Action Needed: Explain that this was exempted income and therefore no tax liability. Keep proofs of this being an exempt income handy.

6. Self-Income from transaction is below taxable limit: This is the option to select if the income in question is below taxable limit of Rs 2.5 lakh.
Action needed: Re-do the calculations to be doubly sure that you don't owe the department any money. Also, keep proofs of all your incomes for the year ready for review.

7. Self-Income from transaction relate to different AY: Select this option income in question was taxable in a different financial year. Action needed: Mention the correct year for taxation in the remarks and keep proof of taxes paid on it (ITR filings) for that year ready.

8.Self-Not Known: This is the option for any other type of income or investment that does not fall in any of the categories mentioned above.
Action needed: Since these will mostly be rare or unusual cases make sure you give a solid explanation in the remarks section.

9.Other PAN: Select this option if a wrong PAN number has been quoted.
Action needed: provide your correct PAN number in remarks.

10. Not Known: Selected this option if you are clueless about which transaction the department is talking about.
Action needed: Wait till the department gets back to you with details.

11.I need more information: Select this option if you know what the transaction is, however, not clear or need more information to submit a response.
Action needed: Wait for the department to respond with more information.

Source: Economic TImes
Taxation of income from sale of listed shares: CBDT circular to reduce disputes

Taxation of income from sale of listed shares: CBDT circular to reduce disputes

9:38 AM Add Comment
A recent circular from the CBDT allowing tax payers to decide whether their gains/losses from sale of listed shares/securities should be treated as business income or as capital gains for tax purposes, is expected to help reduce tax disputes significantly. The reason why this has been a matter of much heartburn among tax payers is that whether these losses/gains are treated as business income or capital gains/losses often makes a large difference in the tax payable on such transactions.

"The circular is likely to enhance certainty in determination of the nature of income on transfer of shares and reduce litigation. The tax payers have been given an option to decide on the way they want to treat the income arising from such transfer, subject to the underlying facts and specified conditions. This is a welcome step and will go a long way in addressing the concerns of tax payers on this subject," said Vikas Vasal, Partner Tax, KPMG India.

The binding nature of the circulars on the Assessing officers will not allow them to question the classification of the income by the assessee which is why this circular is one of the most important on the subject in recent times.

"However, the circular has restricted application to listed shares and securities only and the characterization of surplus from non-listed shares and securities will continue to be decided based on facts of each case and guiding principles under earlier circulars. Therefore, litigation in this area is expected to continue." said Mr. Gitesh Malik, Director, Cap Quest Research (P) Ltd.

How the difference in tax treatment of above mentioned gains/losses impacts tax payable by the assessee is illustrated via an example below:

Example: Suppose a trader, who deals in shares, has sold some listed shares and earned a business income of Rs 40 lakhs. Out of this income of Rs 40 lakhs, Rs 30 lakhs was earned from sale of those shares which were held for more than 12 months and rest Rs 10 lakhs from those held for a shorter duration.

This would result in a tax liability of Rs 10,55,750 (Taxes @ individual slab rates)

Now, with the help of the new circular, the assessee can consider the income of Rs 30 lakhs arising from sale of shares held for more than 12 months as Capital gains.

Consequently, only Rs 10 lakhs will be taxed at slab rates resulting in a tax liability of Rs 128750 (LTCG being exempted u/s 10(38) of the ITA)

This results in the assessee reducing his tax liability by Rs 927000 i.e. 88% (approx).

About the circular

The Central Board of Direct Taxes (CBDT) issued circular No. 6/2016 on 29.2.2016 setting down certain guidelines to be followed by income tax officers in deciding whether profit/loss from sale of listed shares/securities would be treated as capital gains or business income. Several circulars and instructions have been issued previously regarding this matter however, this time the board has given the tax payer the option to decide the nature of his income arising on account of sale of listed shares/securities. The basic idea of issuing the circular is to halt the increasing litigation in this regard.

However, it needs to be clarified that while a tax-payer can decide about the nature of this income for a particular financial year, he will not be able to change the view taken in subsequent years at will unless there is a significant change in the facts and circumstances of his transactions. This means that the tax payer will have to take a one-time decision as to how the income should be treated and that treatment would be applied in subsequent years as well.

Impact of circular on tax treatment of income:

As per the recent circular:

1. In case of listed securities: if the assessee wants to treat his securities as Stock in trade giving rise to Business income (or loss), then Assessing Officers (A.O) should accept this without dispute.
2. In case of listed shares held for more than 12 months: if the assessee wants to treat the securities as Capital assets giving rise to Capital gains (or loss), then again the A.O. is bound to agree with the claim made by the assessee. Here, once the assessee treats the income as capital gain in one assessment year, the same cannot be treated as business income in subsequent years.
3. In all other cases, the principles laid down in instructions, circulars issued earlier would continue to apply.

The principles that have emerged out of previous instructions, Circulars and Landmark Judgments on the matter are summarized as under:

In deciding whether shares/securities are Capital assets or Stock in trade, the following Points are to be considered:

1. The treatment which assessee has given in his books of account, i.e., whether shown as investment or as stock in trade.
2. The existence of power to purchase and sell shares in MOA is not decisive factor that it is stock in trade.
3. Quantum of purchase and sale.
4. Ratio between purchase and sale.
5. Holding Period.
6. Intention of the assessee (whether to resale at profit, or to earn long term appreciation and dividend income)
7. Method of Valuation.
8. It is possible for the assessee to maintain 2 separate portfolios. An investment portfolio comprising of shares held as capital asset and Trading portfolio comprising of shares held as stock in trade.

Source: Economic TImes
ITR Form: Experts call for more details on asset disclosure

ITR Form: Experts call for more details on asset disclosure

9:38 AM Add Comment
NEW DELHI: People earning more than Rs 50 lakh will find it challenging to declare cost of inherited properties and gift items in the new Income Tax Return (ITR) Form for the Assessment Year 2016-17, say tax experts.

The new ITR, notified by the Central Board of Direct Taxes (CBDT) yesterday, requires people with high income to declare cost of land, building, jewellery, bullion, vehicles, yachts, boats and aircraft, in addition to cash in hand.

A new reporting column 'Asset and Liability at the end of the year (Applicable in a case where total income exceeds Rs 50 lakh)' has been introduced in the ITR.

While tax experts said the CBDT has done the right thing by notifying the ITR Form for Assessment Year 2016-17 in March itself, it has not yet come with the required instructions for determining the cost of immovable and movable assets.

Individuals are required to file their tax return for the previous financial year by July 31.

"Individuals are likely to face a challenge in determining cost for gifted assets (such as jewellery), inherited assets and for assets purchased several years earlier where records have not been retained," said Tapati Ghose, Partner, Deloitte Haskins & Sells LLP.

A threshold limit for each category of asset for disclosure purposes would provide an administrative relief in case assets below a prescribed threshold are exempted from disclosure requirement, Ghosh said.

Amit Maheshwari, Partner, Ashok Maheshwary and Associates said last year there were lot of petitions as the tax department had notified the ITR closer to the last date of filing the returns.

"This time they have done the right thing by coming out with the new ITR at the beginning of the new financial year. I think people have enough time to file their returns," he said.

Filing for the new forms begins with the onset of the new financial year today.

Global tax consultancy firm KPMG said that at this stage it appears that the disclosure required in the new ITR Form is to collate information and evaluate the income vis-a-vis the net wealth of an individual.

"We will have to wait as to how this data is utilised in the future i.e. whether any additional tax is levied on the personal wealth, especially when Wealth tax has been withdrawn in the recent past," it said.

Experts also said new ITR Form will help in dealing with the menace of black money.

Finance MinisterArun Jaitley has already announced a scheme to enable black money holders to come clean by paying 30 per cent tax and 15 per cent penalty. For the purpose, government will provide a compliance window.

Last year he came out with similar scheme for flushing out black money stashed abroad.

Source: Economic TImes
ITR asset disclosure norm to affect 1.5 lakh ultra rich: Hasmukh Adhia

ITR asset disclosure norm to affect 1.5 lakh ultra rich: Hasmukh Adhia

9:38 AM Add Comment
NEW DELHI: The new income tax return form requiring assessees earning more than Rs 50 lakh per annum to disclose assets will only impact 1.5 lakh ultra-rich individuals, the Revenue Department said today.

"There are only 1.5 lakh individuals whose total income would be above Rs 50 lakh. This schedule in ITR only applies to ultra rich and will not affect the common man," Revenue Secretary Hasmukh Adhia said.

Brushing aside concerns expressed by tax experts over the new disclosure norms, Adhia said this will mainly apply to those who were required to file wealth tax returns.

The Revenue department on March 30 notified the new Income Tax Return (ITR) forms assessment year 2016-17 requiring persons having income of over Rs 50 lakh to disclose assets like cash in hand, jewellery, bullion, yacht, vehicles, aircraft and immovable property like land and building.

"99.5 per cent taxpayers are not affected by this requirement. Only the ultra rich will have to give this information in their I-T Returns," he said.

According to sources, the decision to incorporate this new schedule in ITR follows the announcement made by Finance MinisterArun Jaitley in 2015-16 Budget in which he had abolished Wealth Tax.

"To track the wealth held by individuals and entities, the information regarding the assets which are currently required to be furnished in wealth tax return will be captured in the Income Tax returns. This will ensure that the abolition of wealth tax does not lead to escape of any income from the tax net," Jaitley had said.

Sources said the provision for declaring assets was already there in ITR 2 and ITR 3, required to be filed by persons having income from business or profession.

The income limit for disclosing of assets in ITR 2 and 3 have been increased from Rs 25 lakh to Rs 50 lakh.

Source: Economic TImes
Simplification and rationalisation of provisions relating to taxation of unrealised rent and arrears of rent

Simplification and rationalisation of provisions relating to taxation of unrealised rent and arrears of rent

9:35 AM Add Comment
Existing provisions of sections 25A, 25AA and 25B relate to special provisions on taxation of unrealised rent allowed as deduction when realised subsequently, unrealised rent received subsequently and arrears of rent received respectively. Certain deductions are available thereon.

It is proposed to simplify these provisions and merge them under a single new section 25A and bring uniformity in tax treatment of arrears of rent and unrealised rent. It is proposed to provide that the amount of rent received in arrears or the amount of unrealised rent realised subsequently by an assessee shall be charged to income-tax in the financial year in which such rent is received or realised, whether the assessee is the owner of the property or not in that financial year. It is also
proposed that thirty per cent of the arrears of rent or the unrealised rent realised subsequently by the assessee shall be allowed as deduction.

The amendment will take effect from 1st day of April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.
Clarification regarding the definition of the term ‘unlisted securities’ for the purpose of Section 112 (1) (c)

Clarification regarding the definition of the term ‘unlisted securities’ for the purpose of Section 112 (1) (c)

9:35 AM Add Comment
Existing provisions of clause (c) of sub-section (1) of section 112 provide tax rate of ten per cent for long-term capital gain arising from transfer of securities,whether listed or unlisted. The expression “securities” for the purpose of the said provision has the same meaning as in clause (h) of section 2 of the Securities Contracts (Regulations) Act, 1956 (32 of 1956)(‘SCRA’). A view has been taken by the courts that shares of a private company are not “securities”.

With a view to clarify the position so far as taxability is concerned, it is proposed to amend the provisions of clause (c) of sub-section (1) of section 112 of the Income- tax Act, so as to provide that long-term capital gains arising from the transfer of a capital asset being shares of a company not being a company in which the public are substantially interested, shall be chargeable to tax at the rate of 10 per cent.

These amendments are proposed to be made effective from the 1st day of April, 2017 and shall accordingly apply in relation to assessment year 2017-18 and subsequent years.
Rationalisation of penalty provisions

Rationalisation of penalty provisions

9:35 AM Add Comment
Under the existing provisions, penalty on account of concealment of particulars of income or furnishing inaccurate particulars of income is leviable under section 271(1)(c) of the Income-tax Act. In order to rationalize and bring objectivity, certainty and clarity in the penalty provisions, it is proposed that section 271 shall not apply to and in relation to any assessment for the assessment year commencing on or after the 1st day of April, 2017 and subsequent assessment years and penalty be levied under the newly inserted section 270A with effect from 1st April, 2017. The new section 270A provides for levy of penalty in cases of under reporting and misreporting of income.

Sub-section (1) of the proposed new section 270A seeks to provide that the Assessing Officer, Commissioner (Appeals) or the Principal Commissioner or Commissioner may levy penalty if a person has under reported his income.

It is proposed that a person shall be considered to have under reported his income if,-
(a) the income assessed is greater than the income determined in the return processed under clause (a) of sub-section (1) of section 143;
(b) the income assessed is greater than the maximum amount not chargeable to tax, where no return of income has been furnished;
(c) the income reassessed is greater than the income assessed or reassessed immediately before such re-assessment;
(d) the amount of deemed total income assessed or reassessed as per the provisions of section 115JB or 115JC, as the case may be, is greater than the deemed total income determined in the return processed under clause (a) of sub-section (1) of section 143;
(e) the amount of deemed total income assessed as per the provisions of section 115JB or 115JC is greater than the maximum amount not chargeable to tax, where no return of income has been filed;
(f) the income assessed or reassessed has the effect of reducing the loss or converting such loss into income.

The amount of under-reported income is proposed to be calculated in different scenarios as discussed herein. In a case where return is furnished and assessment is made for the first time the amount of under reported income in case of all persons shall be the difference between the assessed income and the income determined under section 143(1)(a). In a case where no return has been furnished and the return is furnished for the first time, the amount of under-reported income is proposed to be:

(i) for a company, firm or local authority, the assessed income;
(ii) for a person other than company, firm or local authority, the difference between the assessed income and the maximum amount not chargeable to tax.

In case of any person, where income is not assessed for the first time, the amount of under reported income shall be the difference between the income assessed or determined in such order and the income assessed or determined in the order immediately preceding such order.

It is further proposed that in a case where under reported income arises out of determination of deemed total income in accordance with the provisions of section 115JB or section 115JC, the amount of total under reported income shall be determined in accordance with the following formula-
(A - B) + (C - D)
where,
A = the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions);
B = the total income that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of under reported income;
C = the total income assessed as per the provisions contained in section 115JB or section 115JC;
D = the total income that would have been chargeable had the total income assessed as per the provisions contained in section 115JB or section 115JC been reduced by the amount of under reported income.

However, where the amount of under reported income on any issue is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D.

It is clarified that in a case where an assessment or reassessment has the effect of reducing the loss declared in the return or converting that loss into income, the amount of under reported income shall be the difference between the loss claimed and the income or loss, as the case may be, assessed or reassessed.

Calculation of under-reported income in a case where the source of any receipt, deposit or investment is linked to earlier year is proposed to be provided based on
the existing Explanation 2 to sub-section (l) of section 271 (1).
It is also proposed that the under-reported income under this section shall not include the following cases:
(i) where the assessee offers an explanation and the income-tax authority is satisfied that the explanation is bonafide and all the material facts have been
disclosed;
(ii) where such under-reported income is determined on the basis of an estimate, if the accounts are correct and complete but the method employed is such
that the income cannot properly be deducted therefrom;
(iii) where the assessee has, on his own, estimated a lower amount of addition or disallowance on the issue and has included such amount in the computation
of his income and disclosed all the facts material to the addition or disallowance;
(iv) where the assessee had maintained information and documents as prescribed under section 92D, declared the international transaction under Chapter X
and disclosed all the material facts relating to the transaction;
(v) where the undisclosed income is on account of a search operation and penalty is leviable under section 271AAB.

It is proposed that the rate of penalty shall be fifty per cent of the tax payable on under-reported income. However in a case where under reporting of income results
from misreporting of income by the assessee, the person shall be liable for penalty at the rate of two hundred per cent of the tax payable on such misreported income.

The cases of misreporting of income have been specified as under:
(i) misrepresentation or suppression of facts;
(ii) non-recording of investments in books of account;
(iii) claiming of expenditure not substantiated by evidence;
(iv) recording of false entry in books of account;
(v) failure to record any receipt in books of account having a bearing on total income;
(vi) failure to report any international transaction or deemed international transaction under Chapter X.

It is also proposed that in case of company, firm or local authority, the tax payable on under reported income shall be calculated as if the under-reported income is the total income. In any other case the tax payable shall be thirty per cent of the under-reported income.

It is also proposed that no addition or disallowance of an amount shall form the basis for imposition of penalty, if such addition or disallowance has formed the basis of imposition of penalty in the case of the person for the same or any other assessment year.

These amendments will take effect from 1st day of April, 2017 and will, accordingly apply in relation to assessment year2017-2018 and subsequent years.

Consequential amendments have been proposed in sections 119, 253, 271A, 271AA, 271AAB, 273A and 279 to providereference to newly inserted section 270A.

The provisions of section 270A are illustrated through examples as below:

Example 1. Case is of a firm liable to tax at the rate of 30 per cent.:

(Figures in Rs lakh)
Returned total Income
100
Total Income determined under section 143(1)(a)  
110
Total Income assessed under section 143(3)
150
Total Income reassessed under section 147
180

Considering that none of the additions or disallowances made in assessment or reassessment as above qualifies under sub-section (6) of section 270A, the penalty would be calculated as under:
                                                               

Assessment under
section 143 (3)
Re-assessment under section 147
Under-reported Income
(150-110) = 40
(180-150) = 30
Tax Payable on under-reported Income
30 % of 40 = 12
30 % of 30 = 9
Penalty Leviable*
50 % of 12 = 6
50 % of 9 = 4.5
* Considering under-reported income is not on account of misreporting

Example 2. Case is of an individual below 60 years of age and no return of income has been furnished:

(Figures in Rs)
Total Income assessed under section 143(3)
10,00,000
Under-reported Income
10,00,000-2,50,000* =7,50,000
Tax Payable on under-reported Income
30 % of 7,50,000 = 2,25,000
Penalty Leviable**
50 % of 2,25,000 = 1,12,500
* Being maximum amount not chargeable to tax
** Considering under-reported income is not on account of misreporting

Example 3. Case is of a company liable to tax at the rate of 30 per cent.:

(Figures in Rs lakh)
Returned total Income (loss)
(-)100
Total Income (loss) determined under section 143(1)(a)
(-)90
Total Income (loss) assessed under section 143(3)
(-)40
Total Income reassessed under section 147
20

Considering that none of the additions or disallowances made in assessment or reassessment as above qualifies under sub-section (6) of section 270A, the penalty would be calculated as under:



Assessment under section 143 (3)
Re-assessment under section 147
Under-reported Income
(-)40 minus (-)90 = 50
20 minus (-)40 = 60
Tax Payable on under-reported Income
30 % of 50 = 15
30 % of 60 = 18
Penalty Leviable*
50 % of 15 = 7.5
50 % of 18 = 9
* Considering under-reported income is not on account of misreporting

Existing provision of clause (c) of sub-section (1) of section 271AAB provides that in a case not covered under the provisions of clauses (a) and (b) of the said subsection of section 271 AAB, a penalty of a sum which shall not be less than thirty per cent but which shall not exceed ninety per cent of the undisclosed income of the specified previous year shall be levied in case where search has been initiated under section 132 on or after the 1st day of July, 2012.

In order to rationalise the rate of penalty and to reduce discretion it is proposed to amend that clause (c) of sub-section (1) of section 271AAB to provide for levy of penalty on such undisclosed income at a fl at rate of sixty per cent of such income.
Immunity from penalty and prosecution in certain cases by inserting new section 270AA

Immunity from penalty and prosecution in certain cases by inserting new section 270AA

9:35 AM Add Comment
It is proposed to provide that an assessee may make an application to the Assessing Officer for grant of immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C, provided he pays the tax and interest payable as per the order of assessment or reassessment within the period specified in such notice of demand and does not prefer an appeal against such assessment order. The assessee can make such application within one month from the
end of the month in which the order of assessment or reassessment is received in the form and manner, as may be prescribed.

It is proposed that the Assessing Officer shall, on fulfillment of the above conditions and after the expiry of period of filing appeal as specified in sub-section (2) of section 249, grant immunity from initiation of penalty and proceeding under section 276C if the penalty proceedings under section 270A has not been initiated on account of the following, namely:—
(a) misrepresentation or suppression of facts;
(b) failure to record investments in the books of account;
(c) claim of expenditure not substantiated by any evidence;
(d) recording of any false entry in the books of account;
(e) failure to record any receipt in books of account having a bearing on total income; or
(f) failure to report any international transaction or any transaction deemed to be an international transaction or any specified domestic transaction to which the provisions of Chapter X apply.

It is proposed that the Assessing Officer shall pass an order accepting or rejecting such application within a period of one month from the end of the month in which such application is received. However, in the interest of natural justice, no order rejecting the application shall be passed by the Assessing Officer unless the assessee has been given an opportunity of being heard. It is proposed that order of Assessing Officer under the said section shall be final.

It is proposed that no appeal under section 246A or an application for revision under section 264 shall be admissible against the order of assessment or reassessment referred to in clause (a) of sub-section (1), in a case where an order under section 270AA has been made accepting the application.

Clause (b) of sub-section (2) of section 249 provides that an appeal before the Commissioner (Appeals) is to be made within thirty days of the receipt of the notice of demand relating to an assessment order.

It is proposed to provide that in a case where the assessee makes an application under section 270AA of the Income-tax Act seeking immunity from penalty and prosecution, then, the period beginning from the date on which such application is made to the date on which the order rejecting the application is served on the assessee shall be excluded for calculation of the aforesaid thirty days period. The proposed amendment is consequential to the insertion of section 270AA.

These amendments will take effect from the 1st day of April, 2017 and will, accordingly, apply in relation to the assessment year 2017 -2018 and subsequent years.

In order to help the Assessing Officer to determine the fair market value of the property, the Assessing Officer may, make a reference to the Valuation Officer, who may be required to submit the report of the estimate of the property to the Assessing Officer within a period of thirty days from the date of receipt of such reference.

In order to ensure the revocation of attachment of property in lieu of bank guarantee in a time bound manner, it is proposed to provide that an order revoking the attachment be made by the Assessing Officer within fifteen days of receipt of such guarantee, and in a case where a reference is made to the Valuation Officer, within forty-five days from the date of receipt of such guarantee.

It is further proposed that where a notice of demand specifying a sum payable is served upon the assessee and the assessee fails to pay such sum within the time specified in the notice, the Assessing Officer may invoke the bank guarantee, wholly or partly, to recover the said amount.

In a case where the assessee fails to renew the bank guarantee or fails to furnish a new guarantee from a scheduled bank for an equal amount fifteen days before the expiry of such guarantee, the Assessing Officer may in the interests of the revenue, invoke the bank guarantee. The amount realised by invoking the bank guarantee shall be adjusted against the existing demand which is payable and the balance amount, if any, be deposited in the Personal Deposit Account of the Principal Commissioner or Commissioner in the branch of Reserve Bank of India or the State Bank of India or of its subsidiaries or any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 at the place where the offi ce of the Principal Commissioner or Commissioner is situated.

It is proposed that in a case where the Assessing Officer is satisfied that the bank guarantee is not required anymore to protect the interests of the revenue, he shall release that guarantee forthwith.

These amendments will take effect from lst day of June, 2016.
CBDT notifies new ITR forms for AY 2016-17

CBDT notifies new ITR forms for AY 2016-17

9:35 AM Add Comment
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
NOTIFICATION
New Delhi, the 30th day of March, 2016
Income -tax
S.O. 1262(E).–In exercise of the powers conferred by 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 the Income-tax Rules, 1962, namely:—
1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2016.
(2) They shall come into force with effect from the 1st day of April, 2016.
2. In the Income-tax rules, 1962,—
(1) in rule 12,—
(a)   in sub-rule (1),—
(A)   after the word, brackets, figure and letter "sub-section (4E)", the words, brackets, figure and letter "or sub-section (4F)" shall be inserted;
(B)   for the figures "2015", the figures "2016" shall be substituted;
(C)   in clause (ca), after the words "Hindu undivided family", the words "or a firm, other than a limited liability partnership firm," shall be inserted;
(D)   in clause (g), after the word, brackets, figure and letter "sub-section (4E)", the words, brackets, figure and letter "or sub-section (4F)" shall be inserted;
(b)   in sub-rule (5), for the figures "2014", the figures "2015" shall be substituted.
(2) in Appendix-II, for "Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V", the following forms shall respectively be substituted, namely:—
[Notification No.24/2016/ F.No.370142/2/2016-TPL]

(Ekta Jain)
Deputy Secretary to the Government of India

CBDT identifies taxpayers against whom prosecution proceeding could be initiated for non-filing of return

CBDT identifies taxpayers against whom prosecution proceeding could be initiated for non-filing of return

9:35 AM Add Comment
SECTION 276CC OF THE INCOME-TAX ACT, 1961 - OFFENCES AND PROSECUTION - RETURNS OF INCOME, FAILURE TO FURNISH - POTENTIAL CASES FOR CONSIDERATION OF PROSECUTION UNDER SECTION 276CC
EFS INSTRUCTION NO.55 [F.NO.JDIT(S)-2(4)/SYSTEMS DIRECTORATE/CBDT/011/2014-15], DATED 22-3-2016
As per Central Action Plan 2015-16, Systems Directorate was directed to identify the potential cases for prosecution under section 276CC (prosecution for non-filing of return of income). Earlier, non-filers for AY 2013-14 were identified by Systems Directorate for NMS Cycle-3. The last date for filing the return of income for the AY 2013-14 was 31-3-2015, and therefore the taxpayers identified under NMS Cycle-3 that have neither filed the return of income nor have submitted the response have been identified as potential prosecution cases under section 276CC.
2. These cases have been pushed into a functionality named "Actionable Information Monitoring System (AIMS) (Path: ITD-> EFS->CIB->AIMS). The functionality provides an option to view ITS information and to mark the case as "Proposed for prosecution" and "Not proposed for prosecution". The EFS Instructions are available on i-taxnet (Path: Resources-> Downloads -> Systems ->ITD Instructions ->Instruction -EFS/CIB).
3. The Assessing Officers may be instructed to view the information and take necessary action under section 276CC if the conditions prescribed under section 276CC are fulfilled.
Refer: Taxmann.com
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
Notification No. 24/2016
New Delhi, the 30th day of March, 2016
Income-tax
S.O. 1262(E).– In exercise of the powers conferred by 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 the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2016. (2) They shall come into force with effect from the 1st day of April, 2016.
2. In the Income-tax rules, 1962,−
(1) in rule 12,−
(a) in sub-rule (1),-
(A) after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(B) for the figures “2015”, the figures “2016” shall be substituted;
(C) in clause (ca), after the words “Hindu undivided family”, the words “or a firm, other than a limited liability partnership firm,” shall be inserted;
(D) in clause (g), after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(b) in sub-rule (5), for the figures “2014”, the figures “2015” shall be substituted.
(2) in Appendix-II, for “Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V”, the following forms shall respectively be substituted, namely:-
[Notification No. 24/2016/ F.No.370142/2/2016-TPL]
(Ekta Jain)
Deputy Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (8th Amendment) Rules, 2016, vide notification number S.O. No.1206(E), dated 23rd March, 2016.
- See more at: http://taxguru.in/income-tax/cbdt-notifies-itr12-2a-34s4-567-ay-201617.html#sthash.5wvZCKHn.dpuf
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
Notification No. 24/2016
New Delhi, the 30th day of March, 2016
Income-tax
S.O. 1262(E).– In exercise of the powers conferred by 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 the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2016. (2) They shall come into force with effect from the 1st day of April, 2016.
2. In the Income-tax rules, 1962,−
(1) in rule 12,−
(a) in sub-rule (1),-
(A) after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(B) for the figures “2015”, the figures “2016” shall be substituted;
(C) in clause (ca), after the words “Hindu undivided family”, the words “or a firm, other than a limited liability partnership firm,” shall be inserted;
(D) in clause (g), after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(b) in sub-rule (5), for the figures “2014”, the figures “2015” shall be substituted.
(2) in Appendix-II, for “Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V”, the following forms shall respectively be substituted, namely:-
[Notification No. 24/2016/ F.No.370142/2/2016-TPL]
(Ekta Jain)
Deputy Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (8th Amendment) Rules, 2016, vide notification number S.O. No.1206(E), dated 23rd March, 2016.
- See more at: http://taxguru.in/income-tax/cbdt-notifies-itr12-2a-34s4-567-ay-201617.html#sthash.5wvZCKHn.dpuf
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
Notification No. 24/2016
New Delhi, the 30th day of March, 2016
Income-tax
S.O. 1262(E).– In exercise of the powers conferred by 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 the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2016. (2) They shall come into force with effect from the 1st day of April, 2016.
2. In the Income-tax rules, 1962,−
(1) in rule 12,−
(a) in sub-rule (1),-
(A) after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(B) for the figures “2015”, the figures “2016” shall be substituted;
(C) in clause (ca), after the words “Hindu undivided family”, the words “or a firm, other than a limited liability partnership firm,” shall be inserted;
(D) in clause (g), after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(b) in sub-rule (5), for the figures “2014”, the figures “2015” shall be substituted.
(2) in Appendix-II, for “Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V”, the following forms shall respectively be substituted, namely:-
[Notification No. 24/2016/ F.No.370142/2/2016-TPL]
(Ekta Jain)
Deputy Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (8th Amendment) Rules, 2016, vide notification number S.O. No.1206(E), dated 23rd March, 2016.
- See more at: http://taxguru.in/income-tax/cbdt-notifies-itr12-2a-34s4-567-ay-201617.html#sthash.5wvZCKHn.dpuf
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
Notification No. 24/2016
New Delhi, the 30th day of March, 2016
Income-tax
S.O. 1262(E).– In exercise of the powers conferred by 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 the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2016. (2) They shall come into force with effect from the 1st day of April, 2016.
2. In the Income-tax rules, 1962,−
(1) in rule 12,−
(a) in sub-rule (1),-
(A) after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(B) for the figures “2015”, the figures “2016” shall be substituted;
(C) in clause (ca), after the words “Hindu undivided family”, the words “or a firm, other than a limited liability partnership firm,” shall be inserted;
(D) in clause (g), after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(b) in sub-rule (5), for the figures “2014”, the figures “2015” shall be substituted.
(2) in Appendix-II, for “Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V”, the following forms shall respectively be substituted, namely:-
[Notification No. 24/2016/ F.No.370142/2/2016-TPL]
(Ekta Jain)
Deputy Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (8th Amendment) Rules, 2016, vide notification number S.O. No.1206(E), dated 23rd March, 2016.
- See more at: http://taxguru.in/income-tax/cbdt-notifies-itr12-2a-34s4-567-ay-201617.html#sthash.5wvZCKHn.dpuf
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
Notification No. 24/2016
New Delhi, the 30th day of March, 2016
Income-tax
S.O. 1262(E).– In exercise of the powers conferred by 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 the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2016. (2) They shall come into force with effect from the 1st day of April, 2016.
2. In the Income-tax rules, 1962,−
(1) in rule 12,−
(a) in sub-rule (1),-
(A) after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(B) for the figures “2015”, the figures “2016” shall be substituted;
(C) in clause (ca), after the words “Hindu undivided family”, the words “or a firm, other than a limited liability partnership firm,” shall be inserted;
(D) in clause (g), after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(b) in sub-rule (5), for the figures “2014”, the figures “2015” shall be substituted.
(2) in Appendix-II, for “Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V”, the following forms shall respectively be substituted, namely:-
[Notification No. 24/2016/ F.No.370142/2/2016-TPL]
(Ekta Jain)
Deputy Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (8th Amendment) Rules, 2016, vide notification number S.O. No.1206(E), dated 23rd March, 2016.
- See more at: http://taxguru.in/income-tax/cbdt-notifies-itr12-2a-34s4-567-ay-201617.html#sthash.5wvZCKHn.dpuf
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
Notification No. 24/2016
New Delhi, the 30th day of March, 2016
Income-tax
S.O. 1262(E).– In exercise of the powers conferred by 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 the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2016. (2) They shall come into force with effect from the 1st day of April, 2016.
2. In the Income-tax rules, 1962,−
(1) in rule 12,−
(a) in sub-rule (1),-
(A) after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(B) for the figures “2015”, the figures “2016” shall be substituted;
(C) in clause (ca), after the words “Hindu undivided family”, the words “or a firm, other than a limited liability partnership firm,” shall be inserted;
(D) in clause (g), after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(b) in sub-rule (5), for the figures “2014”, the figures “2015” shall be substituted.
(2) in Appendix-II, for “Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V”, the following forms shall respectively be substituted, namely:-
[Notification No. 24/2016/ F.No.370142/2/2016-TPL]
(Ekta Jain)
Deputy Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (8th Amendment) Rules, 2016, vide notification number S.O. No.1206(E), dated 23rd March, 2016.
- See more at: http://taxguru.in/income-tax/cbdt-notifies-itr12-2a-34s4-567-ay-201617.html#sthash.5wvZCKHn.dpuf
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
Notification No. 24/2016
New Delhi, the 30th day of March, 2016
Income-tax
S.O. 1262(E).– In exercise of the powers conferred by 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 the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2016. (2) They shall come into force with effect from the 1st day of April, 2016.
2. In the Income-tax rules, 1962,−
(1) in rule 12,−
(a) in sub-rule (1),-
(A) after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(B) for the figures “2015”, the figures “2016” shall be substituted;
(C) in clause (ca), after the words “Hindu undivided family”, the words “or a firm, other than a limited liability partnership firm,” shall be inserted;
(D) in clause (g), after the word, brackets, figure and letter “sub-section (4E)”, the words, brackets, figure and letter “or sub-section (4F)” shall be inserted;
(b) in sub-rule (5), for the figures “2014”, the figures “2015” shall be substituted.
(2) in Appendix-II, for “Forms Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V”, the following forms shall respectively be substituted, namely:-
[Notification No. 24/2016/ F.No.370142/2/2016-TPL]
(Ekta Jain)
Deputy Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (8th Amendment) Rules, 2016, vide notification number S.O. No.1206(E), dated 23rd March, 2016.
- See more at: http://taxguru.in/income-tax/cbdt-notifies-itr12-2a-34s4-567-ay-201617.html#sthash.5wvZCKHn.dpuf