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Friday 17 April 2015

Completion of PAN Migration activity



DIRECTOR GENERAL OF INCOME TAX (SYSTEMS)
A.R.A. Centre, Ground Floor, E-2, Jhandewalan Extension
New Delhi-1100055

F. No. DGIT(S)/DIT(S)-4/PAN Mlgration/2014-15/ Dated:  10.04.2015

Dear,

Subject: Completion of PAN Migration activity as per the new jurisdiction orders post restructuring  -reg

After the new jurisdiction orders have been passed by you/ your officers’ subsequent to restructuring, the PAN requires to be migrated to the new Ward/ circle as per the new jurisdiction. It appears that this activity has not been completed by some of the field officers. This is causing inconvenience to a large number of taxpayers.  The Chairperson CBDT has desired that this activity of migrating PANs must be completed  by 25th April, 2015 so  that  the taxpayers  are  aware  of their jurisdiction  and grievances  do  not  arise This  is also  a  priority area  as the tax  payer  need  latest jurisdiction for filing of Return of Income.

Furthermore, I request you to provide the new jurisdiction of all ranges, circles and wards of your Region, on the National Website (www.incometaxindia.gov.in) pages pertaining to your Region, to enable the taxpayers to have easy access to this information.  A new button on “Jurisdiction” shall be created on your Regional page on the National Website by 30th April. You are requested to have the jurisdiction document uploaded on the website by 05th May, 2015. As you may know, the training to all Regions’ nominated officers to upload and update the regional pages of the website has been imparted by the Directorate of Systems in December, 2014. The user name and password for uploading documents on your Regional pages has already been provided to your officers by the DiT(S)-4 team in January 2015. However, for facilitating this activity, DIT(S)-4 shall be circulating a common format and a step-by-step guide for your convenience.

This may be given top priority.

Yours

Nishi Singh

All Pr. CCIT (CCA)

Details of Foreign Assets and Income from any source outside India



As per Notification No. 41/2015 Dated 15.04.2015 and ITR attached with the same alongwith the Instructions a resident assessee has to disclose ‘Details of Foreign Assets and Income from any source outside India’ as follows :-

A. Details of Foreign Bank Accounts held (including any beneficial interest) at any time during the previous year

1. Country Name and Code
2. Name and Address of the Bank
3. Account holder name
4. Status-Owner/ Beneficial owner/ Beneficiary
5. Account Number
6. Account opening date
7. Peak Balance During the Year (in rupees)
8. Interest accrued in the account
9. Interest taxable and offered in this return
  • Amount
  • Schedule where offered
  • Item number of schedule
B. Details of Financial Interest in any Entity held (including any beneficial interest) at any time during the previous year

1 .Country Name and code
2. Nature of entity
3. Name and Address of the Entity
4. Nature of Interest-Direct/Beneficial/owner/Beneficiary
5. Date since held
6. Total Investment (at cost) (in rupees)
7. Income accrued from such Interest
8. Nature of Income
9. Income taxable and offered in this return
  • Amount Schedule
  • where offered
  • Item number of schedule
Guideline for filling Schedule FA ‘Details of Foreign Assets and Income from any source outside India’

(i) This schedule is to be filled up by a resident assessee. It need not be filled up by a ‘not ordinarily resident’ or a ‘non-resident’. Mention the details of foreign bank accounts, financial interest in any entity, details of immovable property or other assets located outside India. This also includes details of any account located outside India in which the assessee has signing authority, details of trusts created outside India in which you are settlor, beneficiary or trustee. Under all the heads mention income generated/derived from the asset. The amount of income taxable in your hands and offered in the return is to be filled out under respective columns. Item G includes any other income which has been derived from any source outside India and which has not been included in the items A to F and under the head business of profession in the return.

(ii) This schedule is to be filled in all cases where the resident assessee is a beneficial owner, beneficiary or legal owner. For this purpose,-
  • Beneficial owner in respect of an asset means an individual who has provided, directly or indirectly, consideration for the asset and where such asset is held for the immediate or future benefit, direct or indirect, of the individual providing the consideration or any other person.
  • Beneficiary in respect of an asset means an individual who derives an immediate or future benefit, directly or indirectly, in respect of the asset and where the consideration for such asset has been provided by any person other than such beneficiary.
Where the assessee is both a legal owner and a beneficial owner, mention legal owner in the column of ownership.

(iii)  (A) The peak balance in the bank account during the year is to be filled up after converting the same into Indian currency.

(B) Financial interest would include, but would not be limited to, any of the following:-

(1)   if the resident assessee is the owner of record or holder of legal title of any financial account, irrespective of whether he is the beneficiary or not.

(2)   if the owner of record or holder of title is one of the following:-

(i)         an agent, nominee, attorney or a person acting in some other capacity on behalf of the resident assessee with respect to the entity.

(ii)        a corporation in which the resident owns, directly or indirectly, any share or voting power.

(iii)      a partnership in which the resident assessee owns, directly or indirectly, an interest in partnership profits or an interest in partnership capital.

(iv)      a trust of which the resident has beneficial or ownership interest.

(v) any other entity in which the resident owns, directly or indirectly, any voting power or equity interest or assets or interest in profits.

(3) the total investment in col(5) of part (B) has to be filled up as investment at cost held during the year after converting it into Indian currency.

(C) The total investment in col(5) of part (C) has to be filled up as investment at cost in immovable property held during the year after converting it into Indian currency.

(D)    The total investment in col(5) of part (D) has to be filled up as peak investment (at cost) held during the year after converting it into Indian currency. Capital Assets include financial assets which are not included in part (B) but shall not include stock-in-trade and business assets which are included in the Balance Sheet.

(E)       The details of peak balance/investment in the accounts in which you have signing authority and which has not been included in Part (A) to Part (D) mentioned above has to be filled up as peak investment/balance held during the year after converting it into Indian currency.

(F) the details of trusts under the laws of a country outside India in which you are a trustee has to be filled up.

(iv) For the purpose of this Schedule, the rate of exchange for the calculation of the value in rupees of such asset situated outside India shall be the telegraphic transfer buying rate of such currency as on the date of peak balance in the bank account or on the date of investment.

Explanation: For the purposes of this Schedule, “telegraphic transfer buying rate”, in relation to a foreign currency, means the rate or rates of exchange adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for buying such currency, having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency, where such currency is made available to that bank through a telegraphic transfer.

Who can & who cannot file - ITR-4S Sugam



1. Who can use Form ITR-4S Sugam for Assessment Year 2015-16 i.e. Financial year 2014-15?

This Return Form is to be used by an individual / HUF whose total income for the assessment year 2015-16 includes:‑

(a)    Business income where such income is computed in accordance with special provisions referred to in section 44AD and 44AE of the Act for computation of business income; or

(b)      Income from Salary/ Pension; or

(c)    Income from One House Property (excluding cases where loss is brought forward from previous years); or

(d)    Income from Other Sources (Excluding winning from Lottery and Income from Race Horses).

Note:
1. The income computed shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation or deduction under the Income-tax Act.
2. Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

2. Who cannot use Form ITR-4S Sugam for Assessment Year 2015-16 i.e. Financial year 2014-15? SUGAM cannot be used to file the following incomes

(a)    Income from more than one house property; or

(b)    Income from winnings from lottery or income from Race horses; or

(c) Income under the head “Capital Gains”, e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc; or

(d)    Income from agriculture/exempt income in excess of Rs. 5,000; or

(e) Income from Speculative Business and other special incomes; or

(f)   Income from a profession as referred to in sub-section (1) of section 44AA or income from an agency business or income in the nature of commission for brokerage; or

(g)    Person claiming relief of foreign tax paid under section 90,90A or 91; or

(h)    Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.

(i) Any Resident Having Income from Any Source Outside India

3. Form Whom ITR-4S SUGAM form is not mandatory for Assessment Year 2015-16 i.e. Financial year 2014-15?

SUGAM Business Form shall not apply at the option of the assessee, if -

(i) the assessee keeps and maintains all the books of account and other documents referred to in section 44AA in respect of the business.

(ii) the assessee gets his accounts audited and obtains a report of such audit as required under section 44AB in respect of the business.

In the above scenarios, Regular ITR-4 should be filed and not SUGAM.

4. Manner of filing  Form ITR- 4S Sugam for Assessment Year 2015-16 i.e. Financial year 2014-15

This Return Form can be filed with the Income Tax Department in any of the following ways,-

4(i)         By furnishing the return in a paper form;

4(ii)        by furnishing the return electronically under digital signature;

4(iii)       by transmitting the data in the return electronically under electronic verification code;

4(iv)       by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;

Where the Return Form is furnished in the manner mentioned at 4(iii),the assessee should print out two copies of Form ITR-V.

NOTE.  One copy of ITR-V, duly signed by the assessee, has to be sent post to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100. The other copy may be retained by the Assessee for his record.