Selection for Scrutiny - Certain guide lines

Guide Lines for selection of cases for Scrutiny During 2010-11
1. Selection of cases for scrutiny during the financial year 2010-11 will be done primarily through CASS this year. Manual Selection for scrutiny this year will be limited only to a few cases listed below
2. List of cases selected during each month in accordance with selection criteria mentioned below shall be submitted by the Assessing officers to their respective Range heads by the 15th of the following month and also displayed on the notice Board of their offices .
3. These guidelines are meant only for the use of officers of the Income Tax Department .These are not to be disclosed even if a request is made under Right to Information Act, In view of the decision of the Central Information Commission in the case of Shri Kamal Vs Director (ITA-II),CBDT(order no CIC/AT/2007/00617 dated 21.02.2008)
Selection criteria Applicable to all return at all stations
a) Value of International transaction as defined in 92B exceeds 15 Crore.
b) Cases involving addition in an earlier assessment year in excess of Rs 10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before on appellate authority.
c) Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs 10 Lakh or more.
d) Assessment in survey cases for the financial year in which survey was carried out. This criteria will not apply if all of the following conditions are fulfilled:
i. There are no impounded books or documents.
ii.There is no retraction of disclosure, if any, made during

the survey.
iii. Declared income, excluding any disclosure made during the survey, is not less than the declared income of the preceding year.
e) Assessment in search & Seizure cases to be made under section 158B, 158BC, 158BD, 153A, 153C & 143(3) of the IT Act.
f) Assessment Initiated under section 147/148 of the IT Act.
g) Assessing officer may select any return for scrutiny after recording he reason and obtaining approval of the CCIT/DGIT. The cases under this category should be selected if, there are compelling reasons and the case is not selected through CASS. These cases should be watched by CCIT/CIT in respect of the quality of assessment.
(F.NO.225/93/2009/ITA.II)

Miss the Tax Deadlines: Don’t Worry You can file the Income tax return till March, 2011

Miss the Tax Deadlines: Don’t Worry You can file the Income tax return till March, 2011

Tax returns are a primary issue for every individual and every individual who is liable to pay tax on income must file their return for the financial year 2009-10 before 31st July, 2010. However, the date has been extended to 4th August, 2010 on the ground of few technical hitches that are being currently faced by the department and the people for e-filing; the problem of poor weather conditions in some places has also added a cause for the extension. The extension was declared by the Central Board of Direct Taxes (CBDT) in a contemporary press conference. The announcement has relieved many tax payers who were unable to file return on time and have an opportunity to rectify their mistakes, but still if one is unable to file his return on time, he has an option to pay his returns till March 2011 provided he complies with certain conditions and pays penalties.

Belated Tax Return:
If an assessee fails to submit the return of income-
Within the time allowed under section 139(1), or
Within the time specified in the notice issued under section 142 (1),
He may submit a return (known as belated return) after the expiry of the said period. But the furnishing must be before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier. So, in our case one can easily file his return n belated basis by March 2011, but penalty in such a case needs to be paid.
Consequences:

Even if filling of belated return is permitted by the Income Tax Act, the following shall be applicable:

If the return is not furnished on or before the due date as specified under section 139 (1), interest under section 234A will be charged.

If belated return is submitted after the end of the relevant assessment year, penalty of Rs. 5, 000 under section 271F will be imposed.

In case of submission of belated return certain losses cannot be carried forward for set off.

Deduction under section 10A, 10B, 80-IA, 80-IAB, 80-IB and 80-IC will not be available if belated return is submitted.

Revised returns: When an assessee files his returns timely but later on discovers some mistakes in the return filed, he submits a revised return to the Department. The assessee may furnish the revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment year, whichever is earlier.

Defective returns: If the assessing officer considers the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him the opportunity to rectify the defect within 15 days from the date of such intimation or within such period as the Assessing Officer may allow on an application made by the assessee.

Thus, from the above explanation me can make a clear judgment that one can file a return of his current year in the next year provided he pays penalty and complies with the requirements but it shall be remembered that once belated return is filed the option for a revised return is closed and the assessee must ensure that his belated return is true and posts a fair view.

Statistics of e-filing upto 4th August 2010

Please see updated "Quick Statistics" for E-Filing of Income Tax Returns upto 4th August 2010. There is increase of 71% overall, however No of ITR-1 Has increased 136% due to availability of New Saral II, Earlier person have to fill ITR-2 in many Income natures .but this year persons can fill return on ITR-1 .

Total 25.Lakh return filed . It is worth to mention here that most of the return Filed was of Voluntary in nature .

Downloading of FVU (Original/updated) available from NSDL now.

How To Download Update Etds FVU File

Deductors are required to file eTDS statement every quarter. Any error/ omission in original statement filed has to be rectified by filing a correction statement.It was possible to file multiple correction statement in respect of one original return, however this was not happening because of the following reasons

Non availability of original statement FVU file
Non availability of updated FVU file after incorporating corrections.

NSDL has now started this facility of downloading latest TDS/TCS consolidated statement , incorporating allupdates done via correction statements Period Consolidated TDS/TCS statement will be available for:
TDS/TCS statements pertaining to F.Y. 2007-08 and onwards.

TDS/TCS statements accepted and existing at TIN central system. Features of consolidated TDS/TCS statement are as below:A. Details as per latest statement: Updated details of deductor/challan/deductee/salary records will be provided.B. Challan matching flag: No updates should be done if the status of the Challan/Transfer Voucher is "Matched". Considering the same the status (matching flag) of the challan / transfer voucher as below is provided:(Flag) (Description) (Correction)
(M) (Matched) No correction to be done for such challans
(U) (UnMatched) Correction can be done .

(P) (Provisionally Booked) No correction to be done for such transfer voucher C. Expected Challan/ Deductee/ Salary detail record number: In correction statement for addition of records, sequence number for record (challan/deductee/salary detail) should be continued from the record number(challan/deductee/salary detail) of earlier regular/correction statement.

Example,
There are 5 challans in regular statement.
1 challan is added by furnishing correction statement
If one more challan is to be added vide another correction statement, sequence of the challan record no. will be 7. To facilitate the deductor/collector in quoting record number in sequence for added records,expected record number for challan, deductee and salary detail (wherever applicable) is incorporated in the consolidated TDS/TCS statement.D. Provisional receipt number (PRN): In correction statement, deductor/collector is required to quote PRN as under to identify the statement in TIN central system for update:

Corresponding regular statement and

Latest accepted/partially accepted correction statement
To facilitate the deductor/collector in quoting correct PRN of Regular and Correction statement, same is provided in the consolidated TDS/TCS statement. Pre-requisite for requesting TDS/TCS statement online.
Online request for TDS/TCS statement can be made only on successful registration of TAN (creating TAN registration account) at TIN website.
Register TAN online at TIN website. For registering TAN click link 'Online TAN Registration' TAN Registration ProcessThe following steps are involved from TAN registration till receipt of login Id and password
Filling up online form on www.tin-nsdl.com at the link Online TAN Registration.
On filling up complete and valid details
Acknowledgement will be generated , which will contain a 12 digit TAN Registration Number
A Confirmation email will be sent to the email ID provided during registration. The email will contain a link .
To verify you will have to enter TAN and TAN registration Number. At this stage you can provide a USER ID of your choice
Another email with a password protected PDF file will be sent to you containing USER ID. This is the same USER ID that you had selected in the previous step.
The password for opening PDF file is your 12 digit TAN Registration Number
Yet another email with a password protected PDF file will be sent to you containing PASSWORD. The password for opening PDF file is your 12 digit TAN Registration Number You can now go to TIN web site and access your TAN registration account under Login>TAN Registration option. Provide the User ID and password sent you in the PDF file. At this stage you will be asked to change the password.Steps to be followed for placing the request of consolidated TDS/TCS statement
Login to TAN Registration Account with user id, password and TAN.
On successful login, under option TDS/TCS, select option "Request- Consolidated TDS/TCS statement".
Request for consolidated TDS / TCS statement can be made for your TAN only.
On clicking the aforementioned option, provide details of statement as below for which consolidated file is required:
Provisional Receipt Number of regular statement
Form no.
Quarter
Financial Year

On successful validation of the above details, two questions related to the TDS/TCS statement requested will be asked as a part of verification.

On successful verification of answers to the aforementioned two questions, request number will be generated and the consolidated TDS/TCS statement will be e-mailed to the user on the email ID provided on TAN registration within 24 hours.

Consolidated TDS/TCS statement will be available only if correct answers are provided to the questions for verification.

Two attempts within a day will be provided to correctly answer the verification questions.

In case of two unsuccessful attempts within a day for the same statement, request for such statement can be placed on next day.

In case of large number of records in the TDS/TCS statement requested, the statement will be split in multiple files owing to restriction of mail size.

In case TDS/TCS statement is split in multiple files then each file will be sent by separate e-mail. Merging the split TDS/TCS statement

In case of multiple files, Merge the files using "File Merge Utility" (FMU)

and then extract the contents.
"File Merge Utility" can be downloaded from TIN website under the option "TAN Registration" in download section. Procedure to merge split file
Copy all the split files in the single folder at the desired location.Open the “File Merge utility” by double clicking the file “FMU.bat”.
Click on “Browse” button of “Input file path” and provide path or navigate to path of the folder where all split files are copied Example: files are copied at D drive and the folder name is TDS_TCS_statement.
On navigating to the folder where all the split files are copied, only one file i.e., the first file will be visible

Select the visible file and click on button “Open”

Click on “Browse” button of “Output file path” and provide path or navigate to path of the folder where merged consolidated TDS/TCS file is to be created

On successful merging of split files message “File merged successfully at xxxxxxxxxxx (desired location)” will be provided and a merged file in compressed form will be created at the output path.
Merged file created is password protected.

For extracting the contents of the merged file follow the procedure as provided in the mail received for consolidated statement Using Consolidated TDS/TCS statement for preparing correction statement.

Consolidated TDS/TCS statement provided will be in compressed form.
Extension of the consolidated TDS/TCS statement will be .tds
In case of single file, extract the content of the file by providing password to the file.

In case of multiple files, merge the files using FMU and then extract the contents of the merged file by providing password.

After extracting the consolidated TDS/TCS statement, import the same in the return preparation utility for making any correction. ConclusionThe facility provided by NSDL will go a long way in helping deductors file correction statements in organized and better manner. The process of registration is simple but considering security every mail attachment from NSDL comes with password protection. This will require deductor to keep track of TAN registration number till it is activated. The process of placing request for consolidated statement , again is little complex for the sake of security. We placed one request and we were asked two questions . One was to fill up PAN and deductee amount in respect of 5 deductees. Second question was to fill up Challan Sr No , date and amount.

INCOME TAX RETURN DATE EXTENDED TO 4TH AUGUST 2010

The CBDT has decided to extend the due date of filing of Income Tax returns from 31st July 2010 to 4th August 2010.

All paper returns or e-returns filed on or before 4th August, 2010 would be considered as filed within the due date.

Press Release

The Central Board of Direct Taxes (CBDT) has decided to extend the due date of filing of income tax returns to 4th August 2010 for taxpayers for whom the due date ends today, which is 31st July 2010. All paper returns or e-returns filed on or before 4th August 2010 will be considered as filed within the due date.The decision was taken in view of some technical snags in the e-filing computer system, and inclement weather at various locations, due to which taxpayers have reported difficulties in filing or uploading income tax returns.