Changes you must keep in mind while filing IT return

July 17, 2014

New Delhi, Jul 17: The government has introduced several changes in the process of filing Income Tax returns to ensure increased compliance, disclosure and transparency.

As the July 31 deadline for submitting income tax returns gets closer, we analyse the key changes and provides a detailed guide to make your filing easier.

ittAlthough the tax rates and slabs for the assessment year 2014-15 or financial year 2013-14 remain the same as they were in the previous year, a rebate of Rs.2,000 is offered to resident individual if his/her total income is upto Rs.500,000 after the standard deductions.

The rebate is provided under Section 87A. The assessment year is always one year ahead of the financial year.

A surcharge of 10 percent on the income above Rs.1 crore is levied for the assessment year 2014-15. The income tax department has added a new column for this surcharge.

Another major change is related to discontinuation of refunds through cheques.

You must provide details of bank account to get refunds, if any. The IT department has decided to discontinue payment of refunds through cheques and it will be done only through electronic clearance service (ECS).

"You must carefully mention your bank account details. Blanks, all zeros, special characters, etc. are not allowed," said Surendra Pareek, partner, tax, KPMG in India.
Pareek said prior to logging in to the e-filing website, contact details like mobile number and e-mail address need to be updated for all taxpayers filing returns electronically.

However, non-residents and foreign taxpayers need to update only their e-mail addresses.

It has become mandatory for all those people whose taxable income exceed Rs.5 lakh to file the returns electronically. This was made mandatory from the assessment year 2013-14.

There are two ways of filing the return online. You can either file your return online by going to the income tax department website incometaxindiaefiling.gov.in or through the government authorised e-return intermediary.

Filing of return through the department's website is free of cost, while e-return intermediaries charge a fee of around Rs.250 to Rs.1,500, depending on the kind of services.

Ankur Sharma, co-founder and chief executive officer of TaxSpanner.com, a leading e-return intermediary, said that with a view to providing more transparent services, the IT department has decided to limit the number of returns which can be e-filed using a single email id at four.

"The income tax department may increase this number a bit, but the idea of connecting directly with the taxpayer is very welcome," said Sharma, adding that the use of only taxpayer's email ID in electronic filing of returns would ensure that he/she remain in control of data.

The process has become easier for Non-Resident Indian (NRI) assessees. Now, the Central Processing Centre (CPC), Bangalore, will auto process income tax returns of NRIs. Earlier there used to be manual verification.

In addition to the Excel software, the income tax return can also be filed using Java from this year.

Java software allows pre-filling of data into the ITR forms based on information available in the Permanent Account Number (PAN) database and Form 26AS.

The new utility also supports direct uploading of the Income Tax Return (ITR) form to the Income Tax department. Direct upload facility is not available in the Excel utility.

The e-filing website allows free download of Java and Excel utilities to fill in the ITR forms. The utilities are available at the income tax department website:

incometaxindiaefiling.gov.in. Some private players also offer this software.

Referring to an income tax department guideline, Pareek said taxpayers should be careful in selecting the software and should avoid unauthorised Mobile Apps which are available for preparation and filing of the ITRs.

Most of the stakeholders and analysts IANS spoke to expressed hope that the number of electronic filing of returns is estimated to jump by almost 40 percent this year.

According to data available with the income tax department, 2,799,055 income tax returns were filed electronically in the first three months of the current fiscal.

In the financial year 2013-14, a total 29,681,794 returns were filed online.

Easier processes and mandatory limit of online filing to income above Rs.5 lakh is likely to boost e-filing.

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Agencies
July 8,2020

New Delhi, Jul 8: India has reported a spike of 22,752 COVID-19 cases in the last 24 hours, taking the country's coronavirus tally to 7,42,417 on Wednesday, informed the Union Ministry of Health and Family Welfare.

Out of the total cases reported, 4,56,830 patients have been cured/discharged from the disease while one patient has been migrated, the Health Ministry informed.

It added that there are 2,64,944 active cases in the country.

482 deaths reported in the last 24 hours due to COVID-19 in the country, taking India's death toll to 20,642.

According to the Union Health Ministry, Maharashtra continues to be the worst affected state reporting 2,17,121 coronavirus cases and 9,250 fatalities.

Tamil Nadu -- the second worst-affected state from COVID-19 -- has a total of 1,18,594 cases and 1,636 deaths due to coronavirus.

While Delhi has a total of 1,02,831 COVID-19 cases including 3,165 deaths.

The Indian Council of Medical Research on Wednesday informed that a total of 1,04,73,771 samples tested for COVID-19 up to July 7. Of these, 2,62,679 samples were tested on Tuesday.

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Agencies
January 16,2020

New Delhi, Jan 16: In trouble brewing for the Gautam Adani-led M/S Adani Enterprises, the Central Bureau of Investigation (CBI) on Thursday said that it has registered a case against former officials of the National Co-operative Consumer Federation (NCCF) and others over alleged irregularities in supply of coal to the Andhra Pradesh Power Generation Corporation (APGENCO) in 2010.

The CBI in its FIR has named Virendra Singh, the then Chairman of the NCCF, G P Gupta, the then MD of the NCCF, S C Singhal, the then Senior Advisor of NCCF, Adani Enterprises Ltd and other unknown public servants and others for criminal conspiracy, cheating and criminal misconduct by public servants.

According to CBI, the case was filed on Wednesday after the preliminary enquiry revealed the crime by the officials named in the FIR and the Adani Enterprises was found to be true.

The FIR alleged that on June 26, 2010, APGENCO floated a tender enquiry for supply of six lakh metric tonnes of imported coal "on free on rail destination" basis to Dr Narla Tata Rao Thermal Station (NTTPS), Vijaywada and Rayalasaleema Thermal Power Plant (RTTP), Kadapa, Andhra Pradesh/RTPP via Kakinada-Vizag-Chennai-Krishnapatnam or any other ports

The same was forwarded by the Chief Engineer, APGENCO to seven PSUs -- PEC Limited, STC Limited, MSTC Limited, NCCF, MMTC, Coal India Limited and SCCL Limited.

The FIR alleged that during the probe, the Adani Enterprises used a proxy company to get the supply contract. It said, "NCCF received bids from six companies -- Adani Enterprises Ltd, Maheshwari Brothers Coal Limited (MBCL), Vyom Trade Links Pvt. Ltd, Swarana Projects Pvt. Ltd, Gupta Coal India Ltd and Kyori Oremen Ltd.

During investigation it was found that Gupta Coal India Ltd had quoted the NCCF margin of 11.3 percent, while the MBCL quoted the margin of 2.25 percent and rest did not quote any margin to the NCCF.

The FIR said the quotes of the Gupta Coal India Ltd, Kyori Oremen Ltd and Swarana Projects Pvt. Ltd were rejected by the NCCF as they were not found to be fulfilling the tender conditions.

"Post tender negotiation was done by senior officials of NCCF to give undue favour to Adani Enterprises Ltd despite it not qualifing the tender (terms)," the FIR said, adding instead of cancelling the bid of Adani Enterprise Ltd, senior management of NCCF conveyed the offer margin to the company through one of its representative -- Munish Sehgal, who was sitting in the NCCF head office. It is prima facie evident that when the bids were being processed at NCCF head office in Delhi, a representative of Adani Enterprises Ltd. was informed regarding their imminent rejection due to non-submission of NCCF margin and also that MBCL was eligible bidder quoted 2.25 percent margin," it alleged.

The CBI in its FIR, further alleged that Adani Enterprises Ltd. had given an unsecured loan of Rs 16.81 crore to Vyom Trade Links Ltd in 2008-09. "And further it was revealed that the bank guarantees of the Adani Enterprises Ltd. and Vyom Trade Links Ltd. were issues by the same branch of the State Bank of India and at the same time," it said.

"It was clear that Adani Enterprises Ltd. presented Vyom Trade Links Ltd. as a proxy company in this particular tender and Vyom Trade Links Ltd. later withdrew its offer on flimsy ground," the CBI FIR said.

"The aforesaid acts of commissions and omissions on the part of the senior management of the NCCF disclose that during their tenure, they acted in a manner unbecoming of public servants and committed irregularities by way of manipulation in the selection of bidders, thereby giving undue favours to Adani Enterprises Ltd. in award of work for supply of coal to APGENCO despite its disqualification," it added.

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News Network
January 1,2020

Jan 1: The ban on the practice of instant triple talaq, making it a penal offence and the increase in the strength of Supreme Court judges were two of the major achievements of the law ministry in 2019.

In July, Parliament gave its nod to The Muslim Women (Protection of Rights on Marriage) Bill, 2019. The new law makes talaq-e-biddat or any other similar form of talaq having the effect of instantaneous and irrevocable divorce pronounced by a Muslim husband void and illegal.

It makes it illegal to pronounce talaq three times in spoken, written or through SMS or WhatsApp or any other electronic chat in one sitting.

According to the new law, any Muslim who pronounces the illegal form of talaq upon his wife shall be punished with imprisonment for a term which may extend to three years, and shall also be liable to fine.

During the year, four new judges were appointed to the Supreme Court in September, taking its strength to 34, the highest-ever.

However, vacancies in high courts and lower courts are on the rise and convincing state governments and the 25 high courts to come on board to create an all-India judicial service to recruit judges for the subordinate courts tops the agenda of the Law Ministry in 2020.

Besides creating a consensus on setting up the All-India Judicial Services, the ministry will also have to focus on filling up vacancies in the high court. On an average, the vacancies stood at 400 throughout this year.

With more than 5,000 positions of judicial officers in district and subordinate courts lying vacant, the Law Ministry has pitched for setting up all-India judicial services.

The sanctioned strength of the judicial officers in district and subordinate courts was 22,644. The number of judicial officers in position and vacant posts is 17,509 and 5,135, respectively.

The government has proposed that while states and high courts can recruit judicial officers, the Union Public Service Commission (UPSC) can hold pan-India entrance tests.

The ministry has made it clear that such services would not encroach on the powers of the states.

As of now, the selection and appointment of judges in subordinate courts is the responsibility of the high courts and state governments concerned.

The Narendra Modi government has given a fresh push to the long-pending proposal to set up the new service to have a separate cadre for the lower judiciary in the country.

But there is a divergence of opinion among state governments and respective high courts on the constitution of the All India Judicial Service (AIJS).

One of the problems cited is that since several states have used powers under Code of Criminal Procedure (CrPC) and Code of Civil Procedure (CPC) to declare that the local language would be used in lower courts even for writing orders, a person say selected from Tamil Nadu may find it difficult to hold proceedings in states like Uttar Pradesh and Bihar.

The other point of opposition is that an all India service may hamper the career progression of state judicial services officers.

Another key issue the ministry has to handle in 2020 is vacancies in the 25 high courts.

Throughout 2019, on an average, the high courts faced a shortage of 400 judges.

According to Law Ministry data, as on September 1, the high courts had 414 vacant positions as compared to the sanctioned strength of 1,079 judges. The figure was 409 in August and 403 in July, as per the data.

A three-member Supreme Court collegium recommends the names of candidates for appointment as high court judges. In case of appointments to the Supreme Court, the collegium consists of five top judges of the top court.

High court collegiums shortlist candidates for their respective high courts and send the names to the law ministry.

The ministry, along with background check reports by the Intelligence Bureau, forwards it to the Supreme Court collegium for a final call.

The government has maintained that appointment of judges in the high courts is a "continuous collaborative process" between the Executive and the Judiciary, as it requires consultation and approval from various Constitutional authorities.

Vacancies keep arising on account of retirement, resignation or elevation of judges and increase in judges' strength. In June last year, the vacancy position stood at 399, while it was 396 in May.

In April, 399 posts of judges were vacant, while the figure was 394 in March. The vacancy position in February stood at 400 and in January, it was 392, according to the data collated by the Department of Justice.

Over 43 lakh cases are pending in the 25 high courts.

Another priority would be the finalisation of the memorandum of the procedure to guide the appointment and transfer of the Supreme Court and high court judges. The issue had now been pending for over two years now with the SC collegium and the government failing to reach a consensus.

Successive governments have also been working on making India a hub of international arbitration. It has taken several steps to change laws dealing with commercial disputes.

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