CBDT has noticed that
5,09,898/- taxpayers who have submitted an return for AY 2011-12 or
2012-13 or AY 2013-14 (Upto 20th October 2014) with returned Income of More
than 10 Lakh or paid self assessment tax of more than / equal to one lakh (as
per ITR) have not filed ITR for AY 2014-15.
Friday 31 October 2014
CBDT - Notices to non-filers
Wednesday 29 October 2014
CBDT Instructions-fish farmers
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI
INSTRUCTION NO. 8/2014, Dated: October 27, 2014
Subject:-
Framing of scrutiny assessments in cases of fish farmers involved in running
inland fresh water fish tanks-regarding
Representations
have been received by the Board from various quarters regarding difficulties
being faced on account of surveys and income-tax scrutiny assessments by fish
farmers, being involved in business and profession of running inland fresh
water fish tanks specifically in cases where the books-of-accounts are not
being maintained by the assessees concerned.
2. While
conducting scrutiny in such cases, issue arises about quantification of income
from activity of fish farming during the relevant financial year. As the
books-of-accounts are unavailable, an Assessing Officer is required to assess
the income from activity of fish farming on estimated basis. While making such
estimates on basis of ‘per Acre water spread area’, it has been reported that
there are wide disparities in the figure of income being so estimated as
non-uniform yardsticks/benchmarks are being adopted by the different Assessing
Officers. Likewise, in such cases, taxpayers estimate their income on basis of
benchmarks prescribed in earlier circular of the Board in
F.No.225/222/93/ITA.II dated 19.10.1993 which for the Assessment Year 1993-94,
on ‘per Acre water spread area’ basis, prescribed a rate of Rs.4,000/- as
income from activity of fish culture in Andhra Pradesh. On the basis of this
limit, taxpayers claimed that their income is computable after due
consideration of the price index for the relevant year. While this approach in
estimating the income on basis of parameter determined way back in the year 1993
by merely accounting for the inflation as suggested by the Farmers association,
may be a ready and rough method, it may not represent the current situation and
business reality. It is also apparent that conflicting views of the Assessing
Officers lead to framing of subjective and high pitched assessments, which
besides leading to infructuous work for the Department, causes harassment and
grievance to the taxpayer concerned.
3. Therefore,
considering the genuine difficulties (business located in far off and interior
areas lacking banking facilities, vagaries of nature including availability of
water, lack of education and knowledge of accounting, etc.) being faced for
proper administration of relevant provisions of the Income-tax Act, 1961
(‘Act’) to cases of fish farmers, Board is of the view that uniform and
appropriate norms may be applied while computing income form fish culture on
basis of ‘per Acre of water spread area’. To ensure consistency in approach. a
Committee comprising of two Commissioners and two representatives of the fish
farmers or fish farmers’ association may be constituted by the Pr.
Chief-Commissioner to determine reasonably the income that may be estimated for
the financial year. In making such a determination, due consideration of various
local factors and inputs from the concerned agency of the State Government may
also be obtained. A suitable standard benchmark may also be adopted for
estimating water spread of fish farmers area as a percentage of total land
area. While passing scrutiny assessments in cases of fish farmers, Assessing
Officers may apply the benchmarks as prescribed by the assessments, no further
deduction under section 30 to 38 of the Act shall be allowed to the taxpayer
concerned as the income from activity of fish farming is being estimated on net
basis after due consideration of allowable business expenses in such an
estimation.
4. Further,
section 133A of the Act may not be invoked indiscriminately for purposes of
mere estimation of the income of fish farmers and may only be undertaken in
those cases where the Department has credible and verifiable information about
taxes being evaded by the person engaged in business or profession of running
inland fresh water fish tanks.
5. It is
reiterated that the above guideline applies only to cases of fish farmers
running inland fresh water fish tanks, who are not maintaining
books-of-accounts in the regular course of business as per the requirement of
section 44AA(2) of the Act.
6. The above
guideline is applicable to cases under scrutiny in the current financial year
and subsequent years.
7. This may be
brought to the notice of all concerned for necessary compliance.
F.No.225/271/2014-ITA.II
(Rohit Garg)
Deputy Secretary to the Government of India
Deputy Secretary to the Government of India
Monday 27 October 2014
Service Tax - ST-3 due date extended to 14th Nov’14
In
view of the recent Natural calamities in certain parts of the country, in exercise
of the powers conferred by sub-rule (4) of rule 7 of the Service Tax Rules,
1994, the Central Board of Excise & Customs vide Order No 02/2014-Service
Tax dated 24th October, 2014 has extended the date of submission of the Form
ST-3 for the period from 1st April 2014 to 30th September 2014, from 25th
October, 2014 to 14th November, 2014. For details please see Order No
02/2014-Service Tax dated 24th October, 2014
F.No.1
37/99/2011 -Service Tax
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
New
Delhi, the 24th October, 2014
ORDER
NO. 02/2014-SERVICE TAX
In exercise of the powers conferred
by sub-rule (4) of rule 7 of the Service Tax Rules, 1994, the Central Board of
Excise & Customs hereby extends the date of submission of the Form ST-3 for
the period from 1st April 2014 to 30th September 2014,
from 25th October, 2014 to 14th November, 2014.
The circumstances of a special
nature, which have given rise to this extension of time, are as follows:
“Natural calamities in certain parts
of the country.”
Himani
Bhayana
Under Secretary (Service Tax)
Central Board of Excise and Customs
Under Secretary (Service Tax)
Central Board of Excise and Customs
Sunday 19 October 2014
Income Tax - FAQ
What
is Income-tax?
It is a tax
levied by the Government of India on the income of every person. The provisions
governing the Income-tax Law are given in the Income-tax Act, 1961.
What
is the administrative framework of Income-tax?
The revenue functions of the
Government of India are managed by the Ministry of Finance. The Finance
Ministry has entrusted the task of administration of direct taxes like
Income-tax, Wealth tax, etc., to the Central Board of Direct Taxes (CBDT). The
CBDT is a part of Department of Revenue in the Ministry of Finance.
CBDT provides essential inputs for
policy framing and planning of direct taxes and also administers the direct tax
laws through the Income-tax Department. Thus, Income-tax Law is administrated
by the Income-tax Department under the control and supervision of the CBDT.
What
is the period for which a person’s income is taken into account for the purpose
of Income-tax?
Income-tax is levied on the annual income of a person. The
year under the Income-tax Law is the period starting from 1st April and ending
on 31st March of next calendar year. The Income-tax Law classifies the year as
(1) Previous year, and (2) Assessment year.
The year in which income is earned
is called as previous year and the year in which the income is charged to tax
is called as assessment year. Normally, income earned during the previous year
is charged to tax in the assessment year. There are certain exceptions to this
rule and income could be taxed in the same year in which it was earned. Being
an exception, it is not elaborated here.
e.g., Income earned during the
period of 1st April, 2013 to 31st March, 2014 is treated as income of the
previous year 2013-14. Income of the previous year 2013-14 will be charged to
tax in the next year, i.e., in the assessment year 2014-15.
Who
is supposed to pay Income-tax?
Income-tax is to be paid by every person. The term ‘person’
as defined under the Income-tax Act covers in its ambit natural as well as
artificial persons.
For the purpose of charging
Income-tax, the term ‘person’ includes Individual, Hindu Undivided
Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs],
Firms, LLPs, Companies, Local authority and any artificial juridical person not
covered under any of the above.
Thus, from the definition of the term ‘person’ it can be
observed that, apart from a natural person, i.e., an individual, any sort of
artificial entity will also be liable to pay Income-tax.
How
does the Government collect Income-tax?
Taxes are collected
by the Government through three means: a) voluntary payment by taxpayers into
various designated Banks. For example, Advance Tax and Self Assessment Tax paid
by the taxpayers, b) Taxes deducted at source [TDS] from the income of the
receiver, and c) Taxes collected at source [TCS]. It is the constitutional
obligation of every person earning income to compute his income and pay taxes
correctly.
How
will I know how much Income-tax I have to pay?
The rates of Income-tax and
corporate taxes are available in the Finance Bill [commonly called as Union
Budget] passed by the Parliament every year. You can also check your tax
liability by using the free online tax calculator available at
www.incometaxindia.gov.in From where can I take the help of any expert on
Income-tax related matters? You can take the help of tax professionals or the
help of Public Relations Officer [PRO] in the local office of the Income-tax
Department. You may also take assistance from Tax Return
Preparers [TRPs]. You can locate your nearest TRP at www.trpscheme.com
From
where can I take the help of any expert on Income-tax related matters?
You can take the help of tax
professionals or the help of Public Relations Officer [PRO] in the local office
of the Income-tax Department. You may also take assistance from Tax Return
Preparers [TRPs]. You can locate your nearest TRP at www.trpscheme.com
When
do I have to pay the taxes on my income?
Generally, the
tax on income crystallizes only on completion of the previous year. However,
for ease of collection and regularity of flow of funds to the Government for
its various activities, the Income-tax Act has laid down the provisions for
payment of taxes in advance during the year of earning itself. It is called as
‘pay as you earn’ concept. Taxes may also be collected on your behalf during
the previous year itself through TDS and TCS mode. If at the time of filing of
return you find that you have some balance tax to be paid after taking into
account the credit of your advance tax, TDS & TCS, the shortfall is to be
deposited as Self Assessment Tax.
How
to deposit Income-tax to the credit of Government?
Tax is to be
deposited to the credit of Government by using the challan prescribed in this
behalf, i.e., ITNS 280. The Challan can be downloaded from
www.incometaxindia.gov.in Tax can be paid in the designated banks through two
modes, viz., physical mode, i.e., cash/cheque or e-payment mode.
In
the Challan there are terms like Income-tax on companies & Income-tax other
than companies. What do they mean?
The tax to be
paid by the companies on their income is called as corporate tax, and for
payment of same in the challan it is mentioned as Income-tax on Companies. Tax
paid by non-corporate assessees is called as Income-tax, and for payment of the
same in the challan it is to be mentioned as Income-tax other than Companies.
How
is advance tax calculated and paid?
Advance tax is
to be calculated on the basis of expected tax liability of the year. Advance
tax is to be paid in instalments as given below:
Status
|
By 15th June
|
By 15th Sept
|
15th Dec
|
15th March
|
Corporate
|
15%
|
45%
|
75%
|
100%
|
Non-Corporate
|
Nil
|
30%
|
60%
|
100%
|
The
deposit of advance tax is made through challan by ticking the relevant column, i.e.,
advance tax.
What
is regular tax and how is it paid?
Under the
Income-tax Act, every person has the responsibility to correctly compute and
pay his due taxes. Where the Department finds that there has been
understatement of income and resultant tax due, it takes measures to compute
the actual tax amount that ought to have been paid. This demand raised on the
person is called as Regular Tax. The regular tax has to be paid within 30 days
of receipt of the notice of demand.
What
are the precautions that I should take while filling-up the tax payment
challan?
Clearly mention:
i. Head of payment, i.e.,
Corporation Tax/Income-tax
ii. Amount and mode of payment of
tax
iii. Type of payment [i.e., Advance
tax/Self assessment tax/Tax on regular assessment/Tax on Dividend/Tax on
distributed Income to Unit holders/Surtax]
iv. Assessment year
v. The unique identification number
called as PAN [Permanent Account Number] allotted by the IT Department.
Do
I need to insist on some proof of payment from the Banker to whom I have
submitted the challan?
The
filled-up taxpayer’s counterfoil will be stamped and returned to you by the
bank. Please ensure that the bank’s stamp contains BSR Code[Bankers Serial
Number Code], Challan Identification Number [CIN], and the date of payment. In
case of e-payment a computer generated copy will be issued.
How
can I know that the Government has received the amount deposited by me as taxes
in the bank?
The NSDL website [http://www.tin-nsdl.com] provides online
services called as Challan Status Enquiry. You can also check your tax credit
by viewing your Form 26AS from your e-filing account at
www.incometaxindiaefiling.gov.in
Form 26AS will also disclose the
credit of TDS/TCS in your account.
What
should I do if my tax payment particulars are not found against my name in the
website?
For payments
deposited by you into the bank you will have to contact your bankers if the
credit has not been given even after three days. In case of TDS or TCS you will
have to contact the concerned deductor/collector after the due date for filing
the quarterly TDS/TCS return by them expires.
Is
my responsibility under the Income-tax Act over once taxes are paid?
No, you are
thereafter responsible for ensuring that the tax credits are available in your
tax credit statement, TDS/TCS certificates are received by you and that full
particulars of income and tax payment are submitted to the Income-tax
Department in the form of Return of Income which is to be filed before the due
date prescribed in this regard.
Who
is an Assessing Officer?
He/She is an
officer of the Income-tax Department who has been given jurisdiction over a
particular geographical area in a city/town or over a class of persons. You can
find out from the PRO or from the Departmental website
http://www.incometaxindia.gov.in about the officer administering the law which
could be based on your geographical jurisdiction or the nature of income earned
by you. Your PAN can help you to find your jurisdictional officer at
https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html
Income-tax
is levied on the income of every person. As per Income-tax Law what constitutes
income?
Under the Income-tax Law, the word income has a very broad
and inclusive meaning. In case of a salaried person all that is received from
an employer in cash, kind or as a facility is considered as an income. For a
businessman his net profit will constitute his income. Income may also flow
from investments in the form of Interest, Dividend, Commission, etc. Further,
income may be earned on account of sale of capital assets like building, gold,
etc.
For the purpose of taxation, the
Income-tax Act does not differentiate between legal and illegal income.
Similarly, every income is chargeable to tax, unless it is explicitly provided
in the Income-tax Act as exempt from tax.
What
is exempt income and taxable income?
An exempt income is not charged to tax, i.e., Income-tax
Law specifically grants exemption from tax to such income. Incomes which are
not granted specific exemptions but charged to tax are called as taxable
incomes.
E.g., Dividend income from an Indian
company is granted specific exemption and, hence, the same is not liable to tax
in the hands of the shareholders. However, dividend from a foreign company is
taxable.
What
does Profession mean?
Profession
means exploitation of one’s skills and knowledge independently. Profession
includes vocation. Some examples are legal, medical, engineering, architecture,
accountancy, technical consultancy, interior decoration, artists, writers, etc.
What books of account have been prescribed to be maintained by a person
carrying on business/profession under the Income-tax Act?
The Income-tax Act does not
prescribe any specific books of account for a person engaged in business or in
non-specified profession. However, such a person is expected to maintain
accounts in such a manner that the net profit of the business can reasonably
and easily be arrived at by the Income-tax Department.
For companies the books of account
are prescribed under the Companies Act. Further, the Institute of Chartered
Accountants of India has prescribed various Accounting Standards to be followed
by the business entities that are required to be audited by them. The
Income-tax Department accepts the books of account maintained under these
Standards.
As regards the maintenance of books
of account by a professional, a person engaged in specified profession has to
maintain certain prescribed books of account, if the annual receipts from the
profession exceed Rs. 1,50,000 in all the three years immediately preceding the
previous year (in case of newly set up profession, his annual receipts in the
profession for that year are likely to exceed Rs. 1,50,000).
Specified profession covers
profession of legal, medical, engineering, architectural, accountancy, company
secretary, technical consultancy, interior decoration, authorised
representative, film artist or information technology.
For more details on the provisions relating to maintenance
of books of account you may refer provisions of section 44AA.
Where
should the books of account of business be kept and for how long?
All the books
of account and related documents should be kept at the main place of business,
i.e., where the business or profession is generally carried on. These documents
should be preserved for a minimum of six years. In many cases, the Income-tax
Department can reopen the case even beyond six years and, hence, in such a case
it is advised to maintain the books of account even after the above stated
period.
What
is revenue receipt and capital receipt?
Receipts can be classified into two kinds: A) Revenue
receipt, B) Capital receipt.
Revenue receipts are recurring in
nature like salary, profit from business, interest income, etc.
Capital receipts are generally of
isolated nature like receipt on account of sale of residential building,
personal jewellery, etc.
Are
all receipts, i.e., capital and revenue receipts, charged to tax?
The general
rule under the Income-tax Law is that all revenue receipts are taxable, unless
they are specifically granted exemption from tax and all capital receipts are
exempt from tax, unless there is a specific provision for taxing them.
I
am an agriculturist. Is my income taxable?
Agricultural
income is not taxable. However, if you have non-agricultural income too, then
while calculating tax on non-agricultural income, your agricultural income will
be taken into account for rate purpose. In short, because of agricultural
income you will have to pay tax at a slightly higher rate.
What
is an agricultural income?
To consider an
activity as agricultural activity one has to carry out both basic operations
and subsequent operations. Basic operations means tilling of land, sowing of
seeds, etc., and the subsequent operations means pruning, weeding, irrigating
and harvesting. Thereafter, what is sold in the market should be the primary
product harvested. Receipt from such sale is considered as agricultural income.
If, however, some further processing or modification is done to the harvested
product to enhance its marketable value, then such enhanced value would be
considered as business income and not as an agricultural income.
Under
the Income-tax Law is income from animal husbandry considered as an
agricultural income?
No.
Do
I need to maintain any records or proof of earnings?
For every
source of income you have to maintain proof of earning and the records
specified under the Income-tax Act. In case no such records are prescribed, you
should maintain reasonable records with which you can support the claim of
income.
As
an agriculturist, am I required to maintain any proof of earnings and
expenditures incurred?
Even if you
have only agricultural income, you are advised to maintain some proof of your
agricultural earnings/expenses.
If
I win a lottery or prize money in a competition, am I required to pay
Income-tax on it?
Yes, such
winnings are liable to flat rate of tax at 30% without any basic exemption
limit. In such a case the payer of prize money will generally deduct tax at
source (i.e., TDS) from the winnings and will pay you only the balance
amount.
If
my income is taxed in India as well as abroad, can I claim any sort of relief
on account of double taxation?
Yes, you can
claim relief in respect of income which is charged to tax both in India as well
as abroad. Relief is either granted as per the provisions of double taxation
avoidance agreement entered into with that country (if any) by the Government
of India or by allowing relief as per section 91 of the Act in respect of tax
paid in the foreign country.
Source- www.incometaxindia.gov.in
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