HAPPY NEW YEAR 2016

Jan 24, 2016

EVC code for electronically filed Income tax returns

Explanation to sub rule (3) of rule 12 of the Income tax Rules 1962, states that for the purposes of this sub-rule "electronic verification code" means a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems). Further, Sub-rule (4) of Rule 12 of the Income Tax Rules 1962 states that the Principal Director General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in the manners (other than the paper form) specified in column (iv) of the Table in sub-rule (3) and the report of audit or notice in the manner specified in proviso to sub-rule (2). 

2 In exercise of the powers delegated by the Central Board of Direct Taxes (`Board') under Explanation to sub rule 3 and sub-rule 4 of Rule 12 of the Income tax Rules 1962, the Principal Director General of Income-tax (Systems) lays down the procedures, data structure and standards for additional modes of generation of Electronic Verification Code in addition to EVC prescribed vide earlier Notification No. 2/2015 dated le July 2015 as under: 

Additional Modes of Generation of EVC:  
Case (5): Where the EVC (Electronic Verification Code) is generated by giving bank details to the e-filing website https://incometaxindiaefiling.qov.in  
A facility to pre-validate Bank account details will be provided to the assessee under Profile Settings menu in e-Filing website i.e.hftps://incometaxindiaefilinAssessee has to provide the following bank account details: 1. Bank account number 2. IFSC 3. Email ID and 4. Mobile Number. These details provided by the assessee along with PAN and Name as per e-filing database will be validated against the details of taxpayer registered with bank. If the pre-validation is successfully completed, assessee can opt for "Generate EVC using bank account details" option while verifying the Income tax return. 

Generated EVC will be sent by e-filing portal to taxpayer's Email ID and/or Mobile Number verified from bank.

List of Banks participating in this facility will be as provided in https://incometaxindiaefiling.govin  

Case (6): Where the EVC (Electronic Verification Code) is generated after Demat account authentication using Demat details registered with CDSL/ NSDL 
A facility to pre-validate Demat account details will be provided to the assessee under Profile Settings menu in e-Filing website i.e.https://incometaxindiaefiling.qov.in.  Assessee has to provide the following Demat account details: 1. Demat account number 2. Email ID and 3. Mobile Number. These details provided by the assessee along with PAN and Name as per e-filing database will be validated against the details of taxpayer registered with depository (CDSL/NSDL). If the pre-validation is successfully completed, assessee can opt for "Generate EVC using Demat account details" option while verifying the Income tax return. 

Generated EVC will be sent by e-filing portal to Email ID and/or Mobile Number verified from CDSL/NSDL. 

The Depositories (CDSL/NSDL) participating in this facility will be as provided in https://incometaxindiaefilingspv.in. 

3. Other Conditions 
The additional mode of EVC generation will come into effect from the date of issue of this notification. All other condition shall remain same as specified in Notification No 2/2015 dated 13.07.2015 issued by Pr. DGIT (Systems), New Delhi. 

4. The mode and process for generation and validation of EVC and its use can be modified, deleted or added by the Principal DGIT (System)/ DGIT (System). 

(Nishi Singh) 
Pr. DGIT (Systems), CBDT

Jan 11, 2016

Delhi Sugam 2 Form DS2 must for bringing goods to Delhi

In exercise of the powers conferred under sub-section (2) of Section 61 of the Delhi Value Added Tax Act, 2004 read with sub-rule (1) of Rule 43 of the DVATRules;2005, I,s.s. Yadav, Commissioner, Value Added T(3x, Government of National Capital Territory of Delhi, hereby prescribe form Delhi Sugam-2 (DS2) which has been notified vide Notification No ..F.7(433)/Policy-Ii/VAT/2012/PF!703-712 dated 10.09.2015, to be one of the documents to be carried by the owner, driver. or person in-charge of the goods . vehicle who is bringing the goods into Delhi and to produce the same as hard copy or in electronic form before any officer in-charge of a check-post or barrier or any other officer empowered by the Commissioner.

This Notification shall come into force with immediate effect.

Repurchase of Inflation Indexed Bonds

The Government of India hereby notifies repurchase of “1.44 per cent Inflation Indexed Government Stock-2023” (hereinafter called the Government Stocks).

Mode of Repurchase
2. The repurchase of the Government Stocks will be undertaken through reverse auction by the Government of India and in one or more tranches by multiple price auction method. The date of repurchase / settlement will be notified by the Reverse Bank of India.

Nominal Amount of Repurchase
3. The repurchase of “1.44 per cent Inflation Indexed Government Stock-2023” will be for an aggregate amount of Rs. 6,500 crore.

Payment
4. The payment for the repurchase of the Government Stocks will be made by the Government of India from its cash balances maintained with the CAS, RBI, Nagpur. Such payment will include the accrued interest on the nominal value of the successful bids/offer accepted by the Reserve Bank of India. The Government Stocks repurchased in the manner will get prematurely redeemed and interest will cease to accrue on such redeemed Government Stocks.

Statutory Provision
5. With respect to any such matter which has not been provided under this notification, the Government Stock shall be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007 framed thereunder and the earlier corresponding Notification(s) Issued by the Government of India.

Krishnapatnam becomes 19th sea port with 24x7 custom clearing

Kind reference is invited to Board’s Circular No. 19/2014- Customs dated 31st December, 2014 on the subject cited above vide which the facility of 24x7 Customs clearance was made available at the 18 sea ports besides 17 Air Cargo Complexes.

2. Board has now decided that the facility of 24x7 Customs clearance for specified imports viz. goods covered by ‘facilitated’ Bills of Entry and specified exports viz. factory stuffed containers and goods exported under free Shipping Bills will be made available at Krishnapatnam Sea port in Nellore, Andhra Pradesh. This would be the 19th Sea port in the country where 24x7 facility would be in operation.

3. Chief Commissioner of Customs is requested to deploy sufficient number of officers on 24x7 basis at the above specified port and give wide publicity to this trade facilitation measure.

4. Suitable Public Notice/Standing Order may be issued.

5. Difficulty faced, if any, may be brought to the notice of the Board.
Yours faithfully,
(Zubair Riaz)
Director (Customs)

Jan 8, 2016

Declarations and payment made under Black Money Act

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force with effect from 1st July, 2015. The Act provided for a one time compliance window to declare assets held abroad and pay due taxes and penalty on the value of assets declared.

A total of 644 declarations were made under the compliance window provided in the Act which closed on 30th September, 2015. The amount involved in these 644 declarations was 4,164 crores.

The declarants were liable to pay tax at the rate of 30 percent and a like amount of 30 percent by way of penalty on the value of assets declared, by 31st December, 2015. The amount received by way tax and penalty upto 31st December, 2015 is Rs 2,428.4 crores. The shortfall is primarily on account of certain declarations, in respect of which there was prior information under the provisions of Double Taxation Avoidance Agreements/Tax Information Exchange Agreements or receipt of payment after 31st December, 2015.

(Shefali Shah)
Pr. Commissioner of Income Tax (OSD)
Official Spokesperson, CBDT

Jan 3, 2016

Condition to furnish and new income tax forms 60, 61 and 61A

Time and manner in which persons referred to in rule 114C shall furnish a statement containing particulars of Form No. 60.-

(1) Every person referred to in,-
(I) clauses (b) to (k) of sub-rule (1) of rule 114C; and
(II) sub-rule (2) of rule 114C and who is required to get his accounts audited under section 44AB of the Act,

who has received any declaration in Form No. 60, on or after the 1st day of January, 2016, in relation to a transaction specified in rule 114B, shall-

(i) furnish a statement in Form No. 61 containing particulars of such declaration to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this purpose and obtain an acknowledgement number; and

(ii) retain Form No. 60 for a period of six years from the end of the financial year in which the transaction was undertaken.

(2) The statement referred to in clause (i) of sub-rule (1) shall,-
(i) where the declarations are received by the 30th September, be furnished by the 31st October of that year; and
(ii) where the declarations are received by the 31st March, be furnished by the 30th April of the financial year immediately following the financial year in which the form is received.

(3) The statement referred to in clause (i) of sub-rule (1) shall be verified—
(a) in a case where the person furnishing the statement is an assessee as defined in clause (7) of section 2 of the Act, by a person specified in section 140 of the Act;
(b) in any other case, by the person referred to in rule 114C.

114E. Furnishing of statement of financial transaction.-
(1) The statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in respect of a financial year in Form No. 61A and shall be verified in the manner indicated therein.

(2) The statement referred to in sub-rule (1) shall be furnished by every person mentioned in column (3) of the Table below in respect of all the transactions of the nature and value specified in the corresponding entry in column (2) of the said Table in accordance with the provisions of sub-rule (3), which are registered or recorded by him on or after the 1st day of April, 2016, namely
Sl.No.
Nature and value of transaction
Class of person (reporting person)
1
(a) Payment made in cash for purchase of bank drafts or pay orders or banker’s cheque of an amount aggregating to ten lakh rupees or more in a financial year. (b) Payments made in cash aggregating to ten lakh rupees or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007). (c) Cash deposits or cash withdrawals (including through bearer’s cheque) aggregating to fifty lakh rupees or more in a financial year, in or from one or more current account of a person
A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act).
2
Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person
(i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).
3
One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ten lakh rupees or more in a financial year of a person.
(i)                  A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898);
(iii) Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); (iv) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (6 of 1934), to hold or accept deposit from public
4
Payments made by any person of an amount aggregating to- (i) one lakh rupees or more in cash; or (ii) ten lakh rupees or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year.
A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card.
5
Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company).
A company or institution issuing bonds or debentures.
6
Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring shares (including share application money) issued by the company.
A company issuing shares.
7
Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to ten lakh rupees or more in a financial year.
A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 (18 of 2013).
8
Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund).
A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf.
9
Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travellers cheque or draft or any other instrument of an amount aggregating to ten lakh rupees or more during a financial year
Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).
10
Purchase or sale by any person of immovable property for an amount of thirty lakh rupees or more or valued by the stamp valuation authority referred to in section 50C of the Act at thirty lakh rupees or more.
Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act.
11
Receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature (other than those specified at Sl. No. 1 to 10 of this rule, if any.
Any person who is liable for audit under section 44AB of the Act.
(3) The reporting person mentioned in column (3) of the Table under sub-rule (2) (other than the person at Sl.No.9) shall, while aggregating the amounts for determining the threshold amount for reporting in respect of any person as specified in column (2) of the said Table,-

(a) take into account all the accounts of the same nature as specified in column (2) of the said Table maintained in respect of that person during the financial year;

(b) aggregate all the transactions of the same nature as specified in column (2) of the said Table recorded in respect of that person during the financial year;

(c) attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons, in a case where the account is maintained or transaction is recorded in the name of more than one person;

(d) apply the threshold limit separately to deposits and withdrawals in respect of transaction specified in item (c) under column (2), against Sl. No. 1 of the said Table.

(4)(a) The return in Form No. 61A referred to in sub-rule (1) shall be furnished to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this purpose under the digital signature of the person specified in sub-rule

(7) and in accordance with the data structure specified in this regard by the Principal Director
General of Income-tax (Systems):

Provided that in case of a reporting person, being a Post Master General or a Registrar or an Inspector General referred to in sub-rule (2), the said return in Form 61A may be furnished in a computer readable media, being a Compact Disc or Digital Video Disc (DVD), alongwith the verification in Form-V on paper.

Explanation.—For the purposes of this sub-rule, “digital signature” means a digital signature issued by any Certifying Authority authorised to issue such certificates by the Controller of Certifying Authorities.

(b) Principal Director General of Income-tax (Systems) shall specify the procedures, data structures and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies.

(c) The Board may designate an officer as Information Statement Administrator, not below the
rank of a Joint Director of Income-tax for the purposes of day to day administration in relation
to the furnishing of returns or statements.

(5) The statement of financial transactions referred to in sub-rule (1) shall be furnished on or before the 31st May, immediately following the financial year in which the transaction is registered or recorded.

(6) (a) Every reporting person mentioned in column (3) of the Table under sub-rule (2) shall communicate to the Principal Director General of Income-tax (Systems) the name, designation,
address and telephone number of the Designated Director and the Principal Officer and obtain
a registration number.

(b) It shall be the duty of every person specified in column (3) of the Table under sub-rule (2), its Designated Director, Principal Officer and employees to observe the procedure and the manner of maintaining information as specified by its regulator and ensure compliance with the obligations imposed under section 285BA of the Act and rules 114B to 114D and this rule.

Explanation 1.- "Designated Director" means a person designated by the reporting person to ensure overall compliance with the obligations imposed under section 285BA of the Act and the rules 114B to 114D and this rule and includes—

(i) the Managing Director or a whole-time Director, as defined in the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors if the reporting person is a company;
(ii) the managing partner if the reporting person is a partnership firm;
(iii) the proprietor if the reporting person is a proprietorship concern;
(iv) the managing trustee if the reporting person is a trust;
(v) a person or individual, as the case may be, who controls and manages the affairs of the reporting entity if the reporting person is, an unincorporated association or, a body of individuals or, any other person.

Explanation 2.- “Principal Officer” means an officer designated by the reporting person referred to in the Table in sub-rule (2).

Explanation 3.- “Regulator” means a person or an authority or a Government which is vested with the power to license, authorise, register, regulate or supervise the activity of the reporting person referred to in the Table in sub-rule (2).

(7) The statement of financial transaction referred to in sub-rule (1) shall be signed, verified and furnished by the Designated Director specified in sub-rule (6):

Provided that where the reporting person is a non-resident, the statement may be signed, verified and furnished by a person who holds a valid power of attorney from such Designated Director”.

3. In the said rules, in Appendix-II, for “Forms 60, 61 and 61A” the following “Forms 60, 61 and 61A” shall respectively be substituted, namely:-
Download Form 60
Download Form 61
Download Form 61A
Download instruction of Form 61
Download instruction of Form 61A

Jan 2, 2016

Verification of PAN in transactions specified in rule 114B

. Verification of Permanent Account Number in transactions specified in rule 114B.-

(1) Any person being,—
(a) a registering officer or an Inspector-General appointed under the Registration Act, 1908 (16 of 1908);

(b) a person who sells the immovable property or motor vehicle;

(c) a manager or officer of a banking company or co-operative bank, as the case may be, referred to at Sl. No. 2 or 3 or 10 or 11 or 12 or 13 of rule 114B;

(d) post master;

(e) stock broker, sub-broker, share transfer agent, banker to an issue, trustee of a trust deed, registrar to issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediaries registered under sub-section (1) section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(f) a depository, participant, custodian of securities or any other person registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) referred to at Sl. No. 4 of rule 114B;

(g) the principal officer of a company referred to at Sl. No. 3 or 4 or 8 or 12 or 13 or 15 or 16 of rule 114B;

(h) the principal officer of an institution referred to at Sl. No. 2 or 3 or 8 or 10 or 11 orM12 or 13 of rule 114B;

(i) any trustee or any other person duly authorised by the trustee of a Mutual Fund referred to at Sl. No. 7 of rule 114B;

(j) an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934), or of any agency bank authorised by the Reserve bank of India;

(k) a manager or officer of an insurer referred to at Sl. No. 14 of rule 114B,
who, in relation to a transaction specified in rule 114B, has received any document shall ensure after verification that permanent account number has been duly and correctly mentioned therein or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.

(2) Any person, being a person raising bills referred to at Sl. No. 5 or 6 or 18 of rule 114B, who, in relation to a transaction specified in the said Sl. No., has issued any document shall ensure after verification that permanent account number has been correctly furnished and the same shall be mentioned in such document, or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.

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