E-facility to view tax and computation sheet for demand raised by AO launched

Income tax Department enables e-facility to view tax and computation sheet for demand raised by Assessing Officer (AO).

Earlier when a taxpayer submitted an objection to an Outstanding Demand appearing in his case in "My Account"on e-filing portal of Income-tax Department, he was not able to view anything further except his own objection. If the demand was raised by CPC then assessee had to verify it by comparing his filed ITR with Sec. 143(1) Intimation. However, where the demand was raised by the jurisdictional Assessing officer then he had to visit the department for getting intimation under section 143(1) in the event of not getting it at communication address. During this process assessee had to face many difficulties and it took long time.

Now the facility to view tax and computation sheet for demand raised by Assessing Officer is made available to the assessee in the e-Filing portal. Thus he can now verify his return with the computation sheet and see the variance and reply accordingly to the department.

To view computation sheet, the assessee has to simply

1. Login to the e-filing portal
2. e-file
3. Click on 'Response to Outstanding Tax Demand'
4. Click on download button next to demand amount
5. Download the details in pdf

CA Kasliwal Ambar

Delhi High Court rejected writ for extention of due date for TAR

Delhi High Court rejected writ for extension of due date for TAR; said CAs should have completed audit by 7th July( i.e. date till form notified), time thereafter is sufficient to file TAR (7th July to 30th September) 

Facts:

a) The petitioner claims to be entitled to extension of due date of filing income-tax return (‘ITR’) (i.e., September 30, 2015) due to the delay on the part of the respondents in prescribing the ITR forms. b) It was contended that the said forms were prescribed only vide Notification dated 29th July, 2015 and were made available only with effect from August 7, 2015. The argument of the counsel for the petitioner was that since the Assessment Year 2015-2016 commenced on 1st April, 2015 and the due date for filing the return is 30th September, 2015, so 180 days are to be made available to the assessee to file the return. The Delhi High Court held as under:

1) The period claimed by the petitioner as a matter of right of 180 days for filing the ITR is admittedly not prescribed, neither in the Statute nor in the Rules.

2) Filing of ITR for assesses due date whereof is 180 day sis dependent upon the accounts of the assessee being audited and which audit the counsel for the petitioner admits commences only on the beginning of assessment year. The said audit, in the case of some assesses may be completed in a few days and in case of others may take longer. Thus, the time taken in audit, which is variable, will be determinative of the time available thereafter for filing the ITR. Said audit is not dependent upon the prescription of the income-tax return (‘ITR’)forms.

3) Once the audit is complete the time admittedly available from 29th July, 2015 / 7th August, 2015 to 30th September, 2015 cannot be said to be so small.

4) The Government vide Press Release dated 9th September, 2015 have already clarified that the date of 30th September, 2015 will not be extended and have advised the taxpayers to file the returns accordingly. The time available, after 7th August, 2015 and till 30th September, 2015 is not found to be illogical or unreasonable to enable the assessees to file the ITR.

5) The counsel for CBDT is unable to give the reasons for the forms are not available at the beginning of the assessment year on 1st April of every year and the same thereby causing inconvenience to the practitioners of the subject.

6) There is sufficient time available to the Government, after the Finance Act of the financial year, to finalise the forms and if no change is intended therein, to notify of the same immediately.

7) From the next assessment year Government should at least ensure that the forms which are to be prescribed for their Audit Report and for filing the ITR are available as on 1st April of the assessment year unless there is a valid reason therefore and which should be recorded in writing by the respondents themselves, without waiting for any representations to be made.

-CA Kasliwal Ambar

Rule-21A, Income-tax Rules

Rule-21A, Income-tax Rules

30[Relief when salary is paid in arrears or in advance, etc.

21A. 31[(1) Where, by reason of any portion of an assessee's salary being paid in arrears or in advance or, by reason of any portion of family pension received by an assessee being paid in arrears or, by reason of his having received in any one financial year salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, his income is assessed at a rate higher than that at which it would otherwise have been assessed, the relief to be granted under sub-section (1) of section 89 shall be—

(a) where any portion of the assessee's salary is received in arrears or in advance or, any portion of family pension is received by an assessee in arrears, in accordance with the provisions of sub-rule (2);(b) where the payment is in the nature of gratuity in respect of past services of the assessee extending over a period of not less than five years, in accordance with the provisions of sub-rule (3);(c) where the payment is in the nature of compensation received by the assessee from his employer or former employer at or in connection with the termination of his employment after continuous service for not less than three years and where the unexpired portion of his term of employment is also not less than three years, in accordance with the provisions of sub-rule (4);(d) where the payment is in commutation of pension, in accordance with the provisions of sub-rule (5); and(e) where the payment is not in the nature of salary paid in arrears or in advance or gratuity in respect of past services or compensation received at or in connection with the termination of employment or in commutation of pension, in accordance with the provisions of sub-rule (6).

(2)(a) In a case referred to in clause (a) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the salary is received in arrears or in advance or, in which the family pension is received in arrears (such salary or family pension being hereafter in this sub-rule referred to respectively as the additional salary or additional family pension, as the case may be, and such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by theamount, if any, by which the tax on the additional salary or additional family pension, calculated in the manner specified in clause (b), exceeds the tax or the aggregate tax on the additional salary or additional family pension, calculated in the manner specified in clause (c) or clause (d), as the case may be.

(b) Tax shall be calculated on the total income of the relevant previous year as reduced by the additional salary or additional family pension, as the case may be, as if the total income so reduced were the total income of the assessee, and the amount by which the tax so calculated falls short of the tax on the total income before such reduction shall, for the purposes of clause (a), be taken to be the tax on the additional salary or additional family pension, under this clause.

(c) Where the additional salary or additional family pension, as the case may be, relates to only one previous year, tax shall be calculated on the total income of the said previous year as increased by the additional salary or additional family pension, as if the total income so increased were the total income of the assessee, and the amountby which the tax so calculated exceeds the tax payable by the assessee in respect of the total income of the said previous year shall, for the purposes of clause (a), be taken to be the tax on the additional salary or additional family pension, under this clause.

(d) Where the additional salary or additional family pension, as the case may be, relates to more than one previous year,—

(i) the previous years to which the additional salary or additional family pension relates and the amount relating to each such previous year shall first be ascertained;(ii) tax shall, then, be calculated on the total income of each such previous year as increased by the amount relating to such previous year ascertained under sub-clause (i); as if the total income so increased were the total income of that previous year, and the amount by which the aggregate amount of tax in respect of the aforesaid previous years as calculated under sub-clause (ii) exceeds the aggregate amount of tax payable by the assessee in respect of the total income of the said previous years shall, for the purposes of clause (a), be taken to be the aggregate tax on the additional salary or additional family pension, under this clause.]

(3) (a) In a case referred to in clause (b) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment by way of gratuity is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by theamount, if any, by which the tax on theamount of the gratuity included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amount of such gratuity, calculated at the rate of tax determined under clause (b) or, as the case may be, clause (c).

(b) Where the payment by way of gratuity is made in respect of past services of the assessee extending over a period of not less than five years but less than fifteen years,—

(i) the total income of the assessee in respect of each of the two previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-half of the amount of the gratuity included in the total income of the relevant previous year, and the average rate of tax for each of the said two previous years shall be calculated as if the total income so increased were the total income of that previous year; and(ii) the average of the average rates of tax for the two previous years immediately preceding the relevant previous year, calculated in accordance with sub-clause (i), shall, for the purposes of clause (a), be the rate of tax determined under this clause.

(c) Where the payment by way of gratuity is made in respect of past services of the assessee extending over a period of not less than fifteen years,—

(i) the total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount of the gratuity included in the total income of the relevant previous year, and the average rate of tax for each of the said three previous years shall be calculated as if the total income so increased were the total income of that previous year; and(ii) the average of the average rates of tax for the three previous years immediately preceding the relevant previous year, calculated in accordance with sub-clause (i), shall, for the purposes of clause (a), be the rate of tax determined under this clause.

(4) (a) In a case referred to in clause (c) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment by way of compensation is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by theamount, if any, by which the tax on theamount of the compensation included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amountof such compensation, calculated at the rate of tax determined under clause (b).

(b) The total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount.

- CA Kasliwal Ambar

Daily CA Updates - 21st August 2015

PROFESSIONAL UPDATES:
21st August, 2015

► Govt. has notified challan no ITNS 284 for depositing taxes under the black money Act.

► ITR E-Verification is possible through

i. authenticate your Aadhaar and link it with your PAN,

ii. Net-banking account and get redirected to the efiling,

iii. E-filing OTP (available only if the Returned Income is below Rs 5 Lakh and no refund is claimed).
► With effect from 1st SEP'15, all 2nd & 4th Saturdays, declared as Public Holiday for all Banks and 1st and 3rd Saturday full working days.
► FAST TRACK EXIT (FTE) FOR DEFUNCT COMPANIES U/s Sec 248 of 2013 Act if The Co have “Nil” Assets & Liabilities and not carrying any business activity except Listed Companies by application Form FTE with fees of Rs. 5,000/-.
► CBEC clarifies on Show Cause Notice issuance & proceedings conclusion as per amended penal provisions in Service Tax and Central Excise.
► Supreme Court on 20th Aug 2015 in the case of CCE Kerala vs Larsen & Toubro Ltd. held that Service Tax can not be levied on indivisible contracts prior to the introduction on 1st June 2007 which expressly makes such works contracts liable to service tax.

- CA Kasliwal Ambar