Tax officers to raise only specific queries in scrutiny: Adhia

December 30, 2015

New Delhi, Dec 30: Seeking to eliminate corruption and promote ease of doing business, the revenue department has asked field offices only to raise specific queries in income tax assessment cases picked up for scrutiny.adhia

Issuing comprehensive norms for scrutiny, the Central Board of Direct Taxes (CBDT) said questionnaires on specific issues should be sent to assessees so that there is no waste of man-hour and unnecessary visits to tax department are avoided.

"We are trying to evolve a system where the interface between the assessee and tax officials is minimum. This will also help in eliminating corruption and reducing harassment of of honest tax payers," Revenue Secretary Hasmukh Adhia told PTI.

Under the new dispensation, he said, the focus of the department would be on e-scrutiny and the assessees will not have to queue up before tax offices without knowing what is required from them.

As per the instructions, tax officials should expeditiously complete in a certain number of hearings the case which has been taken up for limited scrutiny.

These initiatives form part of the drive to make the system more transparent and tax payer friendly, Adhia said adding, "I was taken aback to know that tax officials would summon assesses without raising any specific query".

Issuing the instruction, CBDT said that while issuing the first notice, the Assessment Officers (AOs) do not convey to assessees the specific compliance requirement like production of accounts and furnishing of documents.

As per CBDT instructions, tax officials should complete the scrutiny expeditiously wherein the amount involved is less than Rs 5 lakh.

"In cases selected for scrutiny, it should be the endeavour of the AO that the initial notice issued under Section 143(2) of I-T Act accompany a notice...along with the questionnaire containing details of specific document/ information/evidence that are required to be furnished by the taxpayer in connection with scrutiny assessment proceeding in their respective cases," CBDT said.

Nangia & Co Managing Partner Rakesh Nangia said: "This shall deter AOs from asking roving and general questions, causing unnecessary fear in minds of innocent taxpayers."

The CBDT instruction said further that since taxpayers are required to comply with the statutory notice issued by the AO, they remain "clueless" about the information required to be submitted.

Besides, it added, that their "appearance before the AO does not serve any fruitful purpose except recording of their presence. This causes undue hardships to taxpayers and unnecessary wastage of their time".

"Since CASS (Computer Assisted Scrutiny Selection) cycles are proposed to be run well in advance now, sufficient time shall be available with the AO to go through the returns of income which have been selected for scrutiny and identify the issues which require examination," it said.

With the objective of providing better taxpayer services, improving ease of doing business and reducing the burden of compliance on the taxpayer, CBDT has taken a number of decisions in the recent past.

"With a non-adversarial approach on minds of our policymakers, it is time to bid adieu to unnecessary troubles and harassment of taxpayers," Nangia added.

CBDT further said: "The questionnaire in the case of limited scrutiny cases shall remain confined only to the specific reasons/issues for which case has been picked up for scrutiny. Further the scope of enquiry shall be restricted to the limited scrutiny issues."

However, it added, if it comes to the notice of the AO that the potential escapement of income exceeds Rs 5 lakh or Rs 10 lakh in metro cities, the cases could be taken up for 'complete scrutiny', but only with the approval of Principal CIT or the concerned CIT.

In a separate circular, CBDT said that electronic filing of appeals is being made mandatory for those who are required to file their income tax returns electronically.

"The existing Form 35 for filing of first appeal is being substituted by a new Form. The new format for filing of appeals is more structured, objective, systematic, and aligned with the current provisions of the Income-Tax Act," a CBDT statement said.

Electronic filing of appeal will remove human interface, reduce paperwork and decrease the transaction cost for the taxpayer, it said, adding that it would ensure consistent and error free service as validations will be inbuilt resulting in fewer deficient appeals.

Online filing will also facilitate fixation of hearing of appeals electronically.

"With these changes, the burden of compliance on the taxpayers in appellate proceedings will be significantly reduced," CBDT added.

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News Network
May 6,2020

New Delhi, May 6: Around 39 crore people have received financial assistance of Rs 34,800 crore amid the COVID-19 lockdown under the Pradhan Mantri Garib Kalyan Package (PMGKP) as on May 5, the government said in a statement.

These people received the assistance, which was announced by Union Finance Minister Nirmala Sitharaman on March 26 to protect them from the impact of the lockdown due to COVID 19, via digital payment infrastructure.

The swift implementation of the free food grain and cash payment package under PMGKP is being continuously monitored by Central and state governments. Also, Fintech and digital technology have been employed for swift and efficient transfer to the beneficiary.

As per the data provided by the government, Rs 16,394 crore front-loaded towards payment of the first installment of PM-KISAN was provided to 8.19 crore beneficiaries.

Rs 10,025 crore credited to 20.05 crore (98.33 per cent) women Jan Dhan account holders as first installment and Rs 2,785 crore credited to 5.57 crore women in the second installment.

Further, Rs 1,405 crore was disbursed to about 2.82 crore old age persons, widows and disabled persons and Rs 3,492.57 crore financial support was given to 2.20 crore building and construction workers.

Moreover, foodgrain has been distributed, covering 60.33 crore beneficiaries in all 36 Union Territories and states till April and 12.39 crore beneficiaries by 22 states/UTs for May. Pulses have been distributed so far to 5.21 crore household beneficiaries out of 19.4 crore such beneficiaries.

Over 5 crore cylinders have been booked under the Pradhan Mantri Ujjwala Yojana (PMUY) and 4.82 crore free cylinders already delivered to beneficiaries.

While 9.6 lakh members of Employees' Provident Fund Organisation (EPFO) has taken benefit of online withdrawal of non-refundable advance from EPFO account amounting to Rs 2,985 crore, 24 per cent EPF contribution transferred to 44.97 lakh employees account amounting to Rs 698 crore.

In the current financial year, 5.97 crore person's man-days of work generated under MNREGA scheme and Rs 21,032 crore were released to states to liquidate pending dues of both wage and material.

Insurance scheme for health workers in government hospitals and health care centres has been operationalised by New India Assurance covering 22.12 lakh health workers.

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Agencies
February 27,2020

New Delhi, Feb 27: The US Commission on International Religious Freedom (USCIRF) has said that the Delhi violence in which over 30 people were killed, was specifically targeted against the Muslims.

Expressing "grave concern over the ongoing violence taking place in Delhi", the USCIRF in a statement said that as President Donald Trump's inaugural visit to India winds down, North-East Delhi has been rocked by deadly rioting, with reports of violence and mobs specifically targeting Muslims.

"These incidents are even more concerning in the context of efforts within India to target and potentially disenfranchise Muslims across the country, in clear violation of international human rights standards," USCIRF Commissioner Anurima Bhargava said.

"According to reports, several mosques have also been set alight or vandalized. Many Muslim residents have been forced to flee the area. This unrest comes in the wake of widespread protests against the Citizenship (Amendment) Act following its passage in December 2019.

"The brutal and unchecked violence growing across Delhi cannot continue," Bhargava said adding that the Indian government must take swift action to ensure the safety of all of its citizens.

"Instead, reports are mounting that the Delhi police have not intervened in violent attacks against Muslims, and the government is failing in its duty to protect its citizens."

USCIRF Chair Tony Perkins said the ongoing violence in Delhi and the reported "attacks against Muslims, their homes and shops, and their houses of worship are greatly disturbing".

One of the essential duties of any responsible government, he said, is to provide protection and physical security for its citizens, regardless of faith.

"We urge the Indian government to take serious efforts to protect Muslims and others targeted by mob violence."

In its annual report last year, the USCIRF classified India as a "Tier 2" country for engaging in or tolerating religious freedom violations that meet at least one of the elements of the "systematic, ongoing, egregious standard for designations as a "country of particular concern (CPC)", under the International Religious Freedom Act.

The ongoing violence in North-East Delhi erupted after clashes between pro and anti-CAA protesters on Sunday.

Besides the casualties, over 200 others have been injured in the deadliest violence in the national capital in decades.

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News Network
June 23,2020

Jun 23: The U.S. government on Monday restricted charter flights from India, accusing the nation of "unfair and discriminatory practices" by violating a treaty governing aviation between the two countries.

Air India Ltd. has been making flights to repatriate its citizens during the travel disruptions caused by the Covid-19 outbreak, but also has been selling tickets to the public, the Transportation Department alleged.

At the same time, U.S. airlines have been prohibited from flying to India by aviation regulators there, the DOT said in its order. The situation "creates a competitive disadvantage for U.S. carriers," the agency said in a press release.

Air India is advertising a schedule that is more than half of pre-virus operations, the department said. "The charters go beyond true repatriations, and it appears that Air India may be using repatriation charters as a way of circumventing" that nation's flight restrictions, the U.S. agency said.

The order becomes effective in 30 days, the department said.

Indian airlines must apply to the DOT for authorization before conducting charter flights so that it can scrutinize them more closely, it said. The department will reconsider the restrictions once India lifts restrictions on U.S. carriers.

The action against India follows weeks of DOT restrictions against Chinese airlines after the U.S. agency accused that nation of unfairly banning American carriers in the wake of the virus. On June 15, the U.S. announced it would agree to allow four flights a week from China after it allowed the same number by U.S. carriers.

Attempts to reach Air India and the Indian embassy in Washington after business hours were unsuccessful.

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