• Aug 08, 2022
  
  

• 7th Pay Commission – Central Government Employee Salary News: Should a Central Government Employee having arrears of salary as per the recommendation of the 7th Pay Commission file any form to claim relief under Section 89 of the Income Tax? According to the tax rules, it is mandatory for a government employee to file form 10E online on the Income Tax e-filing website to claim relief under Section 80. Taxpayers who claim relief under Section 89 without filing Form 10E can get a notice from Income Tax Department stating that “The relief under Section 89 has not been allowed in your case, as the onlie form 10E has not been filed”. Therefore, you are required to file Form 10E online before filing your Income-tax return.

Income Tax

New Income Tax exemption rules for expenses on Covid-19 treatment: Check conditions and documents required

• Aug 08, 2022

• Income Tax exemption for Covid-19 treatment: The Central Board of Direct Taxes (CBDT) recently notified new conditions and a form for claiming exemption against expenses on Covid-19 treatment.As per the notification dated 5 August 2022, you will have to submit certain documents to your employer and a form to the income tax department to claim tax exemption on money received from an employer or relatives for Covid-19 treatment.

Income Tax

Banks approach CBDT for clarity on new TDS norm

• Aug 09, 2022

• Banks have approached the Central Board of Direct Taxes (CBDT) for clarity on the scope of Section 194R of the Income Tax Act, as they fear the newly introduced provision will force them to deduct a 10% tax at source on incentives extended to large business customers through credit cards, banking sources told FE.According to Section 194R, introduced in the Budget for FY23, any person providing a resident a benefit or perquisite arising from a business or the exercise of a profession by such resident, will ensure that tax has been deducted at the rate of 10% of the value of the benefit or perquisite. The rules, tied to some riders, came into force on July 1.

Tax Deduction at Source

Aug 10, 2022

Sweeping technology-driven changes in tax administration for companies and individuals is unfolding, with services like never before. Voluntary tax compliance has been the buzzword. Use of technology and skilling of the tax professional is the quiet change. System and data-driven tax regime is unfolding the new way of undertaking tax compliance in India.

The four broad themes have been the pillars of silent change that has been brewing with the tax administration. A very scalable platform is now ready and allows for several new services being launched over an extended period. To begin with, a payment system that connects the platform to banks and financial institutions could make transactions easier is already working. Mobile-driven responses to AIS, mobile apps for convenience, use of e-filing and other new services are in the works.

General

Record keeping rules for charitable institutions get tighter

• Aug 12, 2022
  
  
  All charitable trusts, institutions, universities and other educational trusts and medical institutions are required to keep and maintain books of account, original bills of payment, PAN card, Aadhar card and address of voluntary donors and trustees, along with details of loan taken and investment made by them. Trusts and institutions are also required to maintain record of projects undertaken, voluntary contributions received, every fund transferred to others, incomes from assets and investments, and all purchases made by the trust.
  

• The Central Board of Direct Taxes (CBDT) on Thursday mandated all charitable trusts to maintain the records for 10 years from the assessment years for better tax scrutiny. In addition, all donations from overseas are required to be maintained strictly, it said. The trusts have to keep "application of income outside India containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made", the CBDT said in a notification.

General

Tax appellate tribunal ruling: FPI income not subject to MAT provisions

• Aug 12, 2022
  
  

• A ruling by the Mumbai Income Tax Appellate Tribunal this week has held that the provisions of the Minimum Alternate Tax, or MAT, do not apply to foreign companies, including foreign portfolio investors (FPIs).
  Tax experts reckon this is a welcome judgment for FPIs which are foreign banks or reinsurance companies also having an Indian branch. It affirms the view that income of overseas branches of foreign banks, registered as FPIs, will not be automatically subject to MAT provisions, and that treaty provisions override the provisions of the IT Act, which include MAT provisions.
  “Foreign companies in general will fund this ruling to be a reaffirmation of the principle that MAT does not apply to them. In any case, the decision that MAT does not apply to income that does not get recorded in the books of account will be useful to all taxpayers,” Anish Thacker, partner at EY India, said.The case is for AY2015-16 and pertains to the Singapore branch of Credit Suisse, a Swiss bank, which is registered with Sebi as an FPI.

International Tax

CBDT issues SOP for faceless assessment to cut tax litigation, clear doubts

Aug 12, 2022

The Central Board of Direct Taxes has issued a detailed standard operating procedure (SOP) for officials for dealing with the faceless scheme, in a move aimed at reducing litigation and confusion about the scheme. The board has mandated the officials to grant personal hearing to the assesses within 2-3 days of receiving such a request.
The SOP was issued following a spike in litigation and adverse comments by various courts against the department over its handling of the scheme. "This will put an end to many unnecessary litigation. The SOP has been prepared carefully after taking all the feedback from both assesses and officials," an official told ET. Field officials have been asked to send a centralised communication to the taxpayers in case of non-responsiveness to the notices. It has also been suggested that a physical letter be sent at the latest known address along with text messages to the assesses.

Income Tax

CBDT notifies ITR-U for AY21 & AY22

• Aug 13, 2022

A taxpayer who did not file income tax return in the past or missed to report correct income can now rectify the same by filing updated returns (ITR-U) by paying additional charge for the assessment years (AY) 2020-21 and 2021-22.The Central Board of Direct Taxes (CBDT) notified forms for updated returns for those taxpayers who missed to report correct particulars of Income for previous two assessment years. While the ITR-U allows the taxpayers to be compliant by rectifying mistakes, it does not allow taxpayers to file for refund of taxes or reduction of total income. The Budget 2022-23 has allowed taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move aimed at helping correct any discrepancy or omissions and reduce litigation.

Income Tax