Union budgets highlights 2015

Class 64

64
1. Hind wire revision
2. 156 notice of demand
143 ( 1 ) and 200A ( 1 ) is deemed notice of demand.
3. 158A avoidance of repetitive appeal
If question of law is pending before hc or sc

Assessee will give affidavit( guarantee) to dept if relevant case of assesse is  identical with his otherwise case
To apply the decision of otherwise case in relation to relevant case.

Counter guarantee will be given by AO on admitting the declaration of assesee..

He can reject the declaration of assesse if question of law is not identical.

Rejection order is final order.

If declaration is admitted then AO will pass order by dis allowing exp. And later on if you win the case then AO will change his order and will allow expense P.

4. Protective assessment to protect the interest of revenue

A. Litigation between two parties concerned in civil courts
B. Possibility of benami transaction but still not clear.

Assessment in the hands of both the assesee where real assesse is not confirmed.

But protective recovery is not possible and final recovery will be made from the hands of real owner.

It is just a paper assessment

New AO can track the case by this assessment as cases in courts take 10 - 15 years to get decided.

5. 139 B scheme for submission of return through TRP
govt will pay TRP

TRP WILL BE AN INDIVIDUAL EXCEPT ca, lawyer, employees of co etc

TRP can't file roi of
A. Companies
B. Person required to get their accounts audited.

6. 140 who shall verify the roi.

7. Taxability of deep discount bond.
Can be issued by any co whereas ZCB can be issued by only specified companies.

Circular 2/ 2002

Every year
In short income is opening market value minus closing market values
Under the head other source or pgbp as the case may be.

Sale  then income equals to

Sale price minus closing market value of last financial year

capital gains always short term

In case of redemption substitute sale price with redemption price and income will be under the head ifos or pgbp as the case may be.

TDS at the time of redemption on face value minus redemption value.
However assesse can take benefit of sec 197. .

There were some problems with DDB therefore ZCB.
Already done in respective modules.

8. Perquisite Includes esop, esps and sweat equity shares.
Value equals to fmv on the date of exercise minus price paid.
Q
For fmv rule 3 ( 8 ) equity shares under esop

Esop taxable at the time of allotment.
Rule 3 ( 9 ) for shares other than equity shares

9.  Relief under section 89.
Either benefit of 10 ( 10C) or 89 is available.

10. Module 6
Sec 116
CBDT then dgit/CCIT then dit/cit then ac dc then jc then deputy director or deputy comm then ito then tax recovery officer then inspectors

Few more posts are added to divide the work of higher authorities in income tax.

11. Sec 131 ( 1 ) power to summon.
Here dept is calling assesee.

As per this section income tax authority and DRP will have same power as that of civil court.

Courts powers are mentioned in code of civil procedure 1908.

While dealing with
A.  Inspection and discovery
B. Enforcing personal attendance and oath.
C.  Compelling for books and documents
D. Issuing commissions I. E. Appointing an expert to give report.

These powers can be exercised even if no proceedings are pending.

If not complied with summon then search and seizure and raids.

131 ( 2 ) calling information under section 90 and 90A.

Earlier power with FM to call info in relation to dtaa but now with some officers as well notified in official gazette can exercise power conferred u / s 131 ( 1 ) wrt dtaa etc.

They should  be not below the rank of AC.

131 ( 3 ) impounding of books and documents

Power with DRP and it authority
After recording reason of doing so
And for max 15 days without approval of CCIT OR CIT.

SUBHA AND PRABHA BUILDERS P LTD

extension can be in days only and not in months after recording of reasons of doing so.

12. Section 133 power to call info

General information about the assesee In respect of names and addresses. Eg of partner,  members of HUF, agents, dealer or brokers of assesee, from director of stock exchanges about buyers and sellers, from banking co about his customers. 

In case of banking co even notice can be issued for inquiry purpose.

In this section Personal presence is not required.

If case is not pending then this power cannot be exercised without the approval of cit.

If case is not pending but relates to dtaa then respective authority can exercise his power without any restrictions.

Class 63

63
1. Sec 14 filing of wealth tax return if and only if wealth exceeds 30 lacs
Due date same as income tax
However return filed for the purpose of section 17 is valid

14A and 14B

Now assessee can file electronic return as well.

Sec 15A signing/verification of return by digital signature

Interest for late payment is of 1 % pm or part of the month.

Section 17 equals to 148 of income tax act .

2. remaining provisions are similar to that of income tax act with the only difference of certain limits ...

Module 5
1. Sec 142A reference to valuation officer
For fmv of property.
Even if books of accounts are rejected or not.
For wealth tax purpose etc .
To overrule the judgement which states reference can be made only for capital gains

Submit report within 6 months from the end of the month in which reference is made.

This period will not be counted for the purpose of time limit of assessment I. E. Explanation to sec 153

2. Sec 154 rectification of mistake apparent from records of
A. Order
B. Intimation of sec 143 ( 1 ) and 200A (1)

However
Mistake apparent from records in order of itat to be rectified under section 254 ( 2 )

Appeal against this order is possible

Re rectification is possible.
Rectification can be made only on the  basis of judgement of sc only provided time limit is not expired.

Rectification can be made suo moto or on notice by assessee/deductor
Mistake pointed out by AO to CIT(A)

154 ( 7) within 4 years from the end of the financial year for which rectification is sought .

If order u / s 154 is not passed within time limit of 4 years  then it can be passed to the advantage of the assessee

Partial merger is also applicable in case of sec 154

Retrospective ammendment can be given effect u / s 154 subject to time limit of 4 years

154 ( 8) without prejudice to sec 154 (7 ) Order of section 154 to be passes within 6 months from the end of the month in which the application is received
For making the ammendment or refusing to allow the claim
For clarification see illustration on page no 278

Suo moto 4 years limit
Assessee applied then 6 months

Hind wire industries LTD SC

Order sought to be ammended will not necessarily mean the original order but also the rectified order...