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CBDT Directs Self-Reporting Orgs to File Details of High-Value Transactions by June 30, 2024

editor — Fri, 19 Apr 2024 04:53:52 +0000

Introduction

The Central Board of Direct Taxes (CBDT) has issued a crucial directive requiring self-reporting organizations (SROs) to submit details of high-value transactions conducted during the fiscal year 2022-23 by June 30, 2024.

Understanding CBDT’s Directive

Definition of SROs

SROs encompass various organizations such as banks, post offices, cooperatives, fintechs, and mutual fund houses.

Thresholds for Reporting

Transactions exceeding Rs 50 lakh, share sales and purchases above Rs 10 lakh, and post office deposits and withdrawals exceeding Rs 5 lakh must be reported.

The Compliance Challenge

Non-compliance Issues

Around 6,000 reporting entities have not filed the required information, provided incomplete details, or submitted it in an incorrect format.

CBDT’s Directive to Field Formations

Field formations are tasked with ensuring compliance among reporting entities.

Ensuring Compliance

Deadline and Reporting Requirements

All reporting authorities must file details of high-value transactions through Form 61A, “Statement of Financial Transaction,” by June 30, 2024.

Role of Reporting Authorities

Regional banks, post offices, and regional registries sometimes fail to file details on time, leading to compliance challenges.

Source: https://www.businesstoday.in/personal-finance/tax/story/cbdt-asks-self-reporting-orgs-to-file-details-of-high-value-transactions-by-june-30-425824-2024-04-17

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CBDT Urges Officers to Identify Top 30 Cases of TDS Shortfall by June 30, 2024

editor — Wed, 10 Apr 2024 05:13:23 +0000

The Central Board of Direct Taxes (CBDT) has instructed income tax officers to scrutinize the top 30 cases of insufficient tax deduction at source (TDS) and resolve at least 150 appeals by the Commissioner of Income Tax before June 30, 2024.

These directives are outlined in the interim action plan released by the CBDT for the fiscal year 2024-25, delineating the primary focus areas for field formations.

According to a recent communication from the CBDT to its officials, specific Key Result Areas have been identified for timely accomplishment, alongside attending to statutory limitation matters.

The CBDT routinely issues interim action plans to its officials at the onset of each financial year, refining them later in the year to form the final plan.

Additionally, the CBDT has called for seminars and awareness campaigns to be conducted on TDS. Over the years, TDS has emerged as a significant revenue source for the government, surging from Rs 2.13 lakh crore in FY13 to Rs 8.17 lakh crore in FY23.

As part of its interim plan for the current fiscal, the CBDT has also mandated the immediate approval of all pending refunds withheld under Section 241(A) once scrutiny assessments are completed and requisite orders are passed, either immediately or by April 30, 2024.

Furthermore, the CBDT has directed that all information requested by enforcement agencies such as the CBI, SEBI, and Enforcement Directorate before March 31, 2024, must be shared by the end of April. For requests received after April 1, information should be provided within 15 days.

Field officers are also tasked with identifying cases where seized assets are due for release as per Section 132B and facilitating their release by June 30, 2024.

Source: Business Today

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CBDT Issues Interim Action Plan for F.Y. 2024-25: Emphasizes Adherence

editor — Tue, 09 Apr 2024 04:36:03 +0000

The Central Board of Direct Taxes (CBDT) has released a Circular dated April 05, 2024, denoted as F.No. 380/01/2024, intended for internal departmental utilization. This circular delineates the Interim Action Plan tailored for the Financial Year 2024-25. It is imperative to disseminate this document among all officers within your jurisdiction for requisite action and to ensure unwavering compliance within the specified timeframes for each critical area of focus.

The comprehensive Interim Action Plan for the Financial Year 2024-25 is available for reference and download at the following link: https://www.nyca.in/wp-content/uploads/2024/04/CBDT_Releases_Interim_Action_Plan_for_F.Y._2024-25__for_departmental_use-_Urges_Strict_Compliance.pdf

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CBDT notifies changes in ITR Form V and Acknowledgement for AY 2024-25

editor — Thu, 28 Mar 2024 10:28:31 +0000

The CBDT, through Notification No. 37/2024 dated March 27, 2024, has introduced revisions to the ITR form V and Acknowledgement for Assessment Year 2024-25. These changes align with amendments made in the Income Tax Act, 1961, and the Income Tax Rules, 1962, following the Finance Act, 2023.

For further details, the full notification can be viewed at: https://www.nyca.in/wp-content/uploads/2024/03/CBDT_37-2024-27.3.2024.pdf

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CBDT issues corrigendum to include sec. 43B(h) disallowance under clause 22 of Form 3CD

editor — Thu, 21 Mar 2024 07:32:17 +0000

The Central Board of Direct Taxes (CBDT) introduced amendments to Form 3CD through Notification No. 27/2024 /F. No. 370142/3/2024-TPL, dated 05-03-2024. These amendments primarily focused on enhancing disclosures related to certain provisions of the Income Tax Act.

Disclosure of Section 43B(h) Disallowance (Clause 26): The notification included a requirement for disclosure of disallowances under section 43B(h) within Clause 26 of Form 3CD. This amendment aimed to ensure transparency and comprehensive reporting of such disallowances in accordance with the Income Tax Act.
Amendment of Clause 22: Notably, Clause 22 of Form 3CD, which pertains to interest restrictions under the MSME (Micro, Small, and Medium Enterprises) Development Act, was not initially amended in the notification. However, subsequent revisions have now been made to Clause 22 to incorporate the disclosure of amounts disallowed under section 43B(h).

Source: https://www.nyca.in/wp-content/uploads/2024/03/notification-27-2024.pdf

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CBDT Issues Guidelines on Income Tax Appeal Filing to Reduce Litigation

editor — Tue, 19 Mar 2024 06:24:06 +0000

The Central Board of Direct Taxes (CBDT) has issued Circular No. 5/2024 dated March 15, 2024, under Section 268A of the Income-tax Act, 1961, providing guidelines for the Department’s appeal filings before the Income Tax Appellate Tribunal (ITAT), High Courts (HCs), and for Special Leave Petitions (SLPs)/appeals before the Supreme Court (SC) with the aim of reducing litigation. This circular supersedes Circular No. 3/2018 from July 11, 2018, Circular No. 17/2019 from August 8, 2019, and a board letter dated August 20, 2018.

In line with the guidelines, monetary limits and other conditions for filing departmental appeals under the Income-tax Act, 1961 have been specified for ITATs, HCs, and SC. However, exceptions have been provided where the decision to appeal or file an SLP shall be based on merits without regard to the tax effect and the monetary limits.

These exceptions include cases where:

It contained Any provision of the Act or the Rules or notification issued thereunder has been held to be constitutionally invalid.on both external and internal assets generated or acquired during the relevant financial year under various tax categories such as CGST, SGST & IGST, and HSN codes.
Any order, notification, instruction, or circular of the Board or the Government has been held to be illegal or ultra vires the Act.
The assessment is based on information related to any offence received from law enforcement or intelligence agencies.
Prosecution has been filed by the Department in the relevant case and the trial is pending.
Strictures/adverse comments have been passed against the Department.
The tax effect is not quantifiable or not involved, such as in the case of registration of trusts or institutions.
Addition relates to undisclosed foreign income/undisclosed foreign assets.
Cases involving organized tax evasion or accommodation entries.
Mandated by a Court’s directions.
Writ matters.
Matters related to wealth tax, fringe benefit tax, equalization levy, and other matters outside the Income Tax Act.
Litigation arising out of disputes related to TDS/TCS matters.

The Circular further clarifies that appeals or SLPs shall not be filed in cases where the tax effect does not exceed specified monetary limits for ITAT, HCs, and SC. The tax effect is defined as the difference between the tax on the total income assessed and the tax that would have been chargeable had the total income been reduced by the amount of income in respect of the disputed issues.

Additionally, procedures for calculating the tax effect in cases involving TDS/TCS are outlined, and reporting mechanisms are established to ensure compliance with the Circular’s provisions.

The Circular aims to streamline the appeals process, reduce unnecessary litigation, and provide clarity to taxpayers on their Income-tax assessments. It emphasizes the importance of deciding on appeal filings based on the merits of each case and encourages the resolution of disputes in a fair and efficient manner.

Source: https://www.nyca.in/wp-content/uploads/2024/03/Circular-No.-5-2024-Filing-of-appeals-by-Dept.pdf

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CBDT Orders Income Tax Offices to Operate on March 29-31, 2024

editor — Tue, 19 Mar 2024 04:39:58 +0000

The Central Board of Direct Taxes (CBDT) has issued an Order dated March 18, 2024, announcing the extension of working days for all Income Tax Offices in India. This extension applies to March 29, 30, and 31, 2024, with the aim of facilitating the completion of pending work.

Given that the Financial Year 2023-24 concludes on March 31, 2024, which falls on a Sunday, and March 30, 2024, is a Saturday, and March 29, 2024, is a closed holiday, this decision has been made to ensure that pending departmental tasks can be effectively addressed.

This directive, issued under section 119 of the Income-tax Act, 1961, by the Central Board of Direct Taxes, is aimed at providing administrative convenience and ensuring that necessary tasks are completed within the stipulated time frame.

For further details, the complete Order can be accessed at: https://www.nyca.in/wp-content/uploads/2024/03/CBDT-Order-18.3.2024.pdf

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CBDT Simplifies Business Reorganization ITR Filing Process for Successor Companies

editor — Thu, 14 Mar 2024 10:26:14 +0000

The Central Board of Direct Taxes (CBDT) has issued an order on March 13, 2024, under section 119 of the Income-tax Act, 1961, providing relief to successor companies involved in business reorganizations such as amalgamations, mergers, or demergers sanctioned by competent authorities such as High Courts, Tribunals, or Adjudicating Authorities as per the Insolvency and Bankruptcy Code, 2016. This order addresses situations where the reorganization orders were issued between June 1, 2016, and April 1, 2022, predating the introduction of section 170A by the Finance Act, 2022.

Entities undergoing business reorganizations have faced challenges in filing income tax returns post-reorganization, especially when orders were issued before April 1, 2022. The CBDT’s order aims to simplify this process and provide relief to such successor companies.

Background and Legal Context

The CBDT’s order is based on the judgment in Civil Appeal Nos. 9496-99 of 2019, where the Supreme Court held that successor companies could file returns considering the Scheme of Arrangement and Amalgamation sanctioned by the National Company Law Tribunal (NCLT). This judgment paved the way for successor companies to seek relief in filing their income tax returns post-reorganization.

Provisions and Relief Offered

Section 170A of the Income-tax Act, 1961, introduced by the Finance Act, 2022, allows entities to file modified income tax returns within six months from the end of the month of issuance of the reorganization order. However, this provision applies only to orders issued after April 1, 2022. For orders issued between June 1, 2016, and April 1, 2022, the CBDT’s order provides relief by allowing successor companies to furnish returns with modified particulars in accordance with the reorganization order.

Process for Filing Modified Returns

The CBDT has outlined a streamlined process for successor companies to file modified returns, taking into account the reorganization order. The entities are required to communicate with the Jurisdictional Assessing Officer (JAO) by April 30, 2024, for enablement of electronic filing of returns. The JAO will then verify whether the return is resulting from and limited to the reorganization order and enable electronic filing through the ITBA system. Taxpayers must file their returns by June 30, 2024.

The full order can be assessed at: https://www.nyca.in/wp-content/uploads/2024/03/Order-under-section-119-of-the-Income-tax-Act-1961.pdf

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CBDT Releases Guidelines for Expedited Appeal Disposal

editor — Tue, 12 Mar 2024 04:39:13 +0000

The Central Board of Direct Taxes (CBDT) has issued guidelines, dated March 07, 2024, under F.No.279/Misc/M-102/2021-ITJ, aimed at expediting the handling of appeals by Commissioners of Income Tax (Appeals/Assessment Unit) or Additional/Joint CIT(A).

As per these directives, priority resolution will be given to appeals involving genuine and exceptional circumstances, either initiated by the appellant themselves or referred by the Assessing Officer/Range Head. Principal Chief Commissioners of Income Tax/Chief Commissioners of Income Tax/Directors General of Income Tax will assess these appeals based on advice from local tax authorities.

Examples of such extraordinary situations include appeals with a demand exceeding Rs. 1 Crore, cases flagged by VIPs or the Prime Minister’s Office for prompt resolution, appeals mandated by courts for swift handling, appeals from senior or super senior citizens, or any other appeal presenting genuine difficulties.

For appeals under the jurisdiction of faceless Commissioners of Income Tax (Appeals Unit), requests for expedited processing should be directed to the Principal Chief Commissioner of Income Tax (National Faceless Assessment Centre), who will then forward them to the relevant Commissioner of Income Tax (Appeals Unit).

The guidelines are available for reference at: https://www.nyca.in/wp-content/uploads/2024/03/Guidelines_for_priority_out_of_turn_disposal_of_appeals_by_CsIT.pdf

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CBDT Introduces Key Changes to Income-tax Rules: Fourth Amendment Rules, 2024

editor — Wed, 06 Mar 2024 12:11:45 +0000

In a move aimed at streamlining tax compliance and ensuring transparency, the Central Board of Direct Taxes (CBDT) has issued Notification No. 27/2024 dated March 05, 2024, notifying the Income-tax (Fourth Amendment) Rules, 2024. These amendments, made to the Income-tax Rules, 1962, bring significant updates to various forms and deduction rules under the Income-tax Act, 1961.

Key Changes and Updates

1.) Form No. 3CD:

The amendment introduces new clauses for adjustments concerning sections 115BAA, 115BAC, and 115BAD for specific assessment years. These adjustments aim to ensure accurate reporting of income under different tax regimes.
Additionally, adjustments regarding expenditures in violation of the law have been incorporated into Form No. 3CD, enhancing scrutiny of expenses claimed by taxpayers.

2.) Form No. 3CEB:

3.) Form No. 65:

Source: https://www.nyca.in/wp-content/uploads/2024/03/CBDT-Notification-No.-27-2024-05.03.2024.pdf

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