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
March 5,2020

New Delhi, Mar 5: Retirement fund body EPFO on Thursday lowered interest rate on provident fund deposits to 8.5 per cent for the current financial year, said Labour Minister Santosh Gangwar on Thursday.

The EPFO had provided 8.65 per cent rate of interest on EPF for 2018-19 to its around six crore subscribers. The decision was taken at a meeting of the the Employees' Provident Fund Organisation's (EPFO) apex decision making body -- the Central Board of Trustee.

"The EPFO has decided to provide 8.5 per cent interest rate on EPF deposits for 2019-20 in the Central Board of Trustees (CBT) meeting today," Gangwar told reporters after the meeting here.

Now, the labour ministry requires the finance ministry's concurrence on the matter. Since the Government of India is the guarantor, the finance ministry has to vet the proposal for EPF interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal.

The finance ministry has been nudging the labour ministry for aligning the EPF interest rate with other small saving schemes run by the government like the public provident fund and post office saving schemes.

The EPFO had provided 8.65 per cent rate of interest to its subscribers for 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.

It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.

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News Network
March 16,2020

New Delhi, Mar 16: A total of 110 cases of coronavirus, including 17 foreign nationals have been confirmed across India, Union Ministry of Health and Family Welfare said on Sunday.

The maximum positive cases have been reported from Maharashtra (32), followed by Kerala (22).

The total number of passengers screened at airports is 12,76,046, the ministry said.

The World Health Organisation (WHO) has declared that Europe has become the new 'epicentre' of the coronavirus pandemic that has infected more than 15 lakh people with over 6,000 deaths globally.

The virus had first emerged in China's Wuhan city in December last year.

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News Network
January 9,2020

Raipur, Jan 9: An outbreak of bird flu has been reported from a state-run poultry farm in Chhattisgarh's Korea district, prompting the authorities to cull over 15,000 birds and step up vigil on poultry birds within 10 km radius of the affected area, officials said on Thursday.

So far, 15,426 chickens and quails have been culled and 30,000 eggs destroyed after the highly contagious H5N1 virus was detected among birds at the poultry farm and hatchery in Baikunthpur town, located around 300 km from here, they said.

There has been no case of infection in humans so far due to the outbreak of avian influenza, they said.

"After some chickens and quails were found dead on December 7 last year in the farm, their samples were collected and sent to local laboratories for testing," Dr R S Baghel, deputy director, veterinary department, Korea, told news agency.

When the disease was not properly detected, samples were further sent to Jabalpur in Madhya Pradesh where veterinarians suggested symptoms of chronic respiratory disease, following which their line of treatment was followed.

"Despite the treatment, the abnormal deaths of birds continued," Baghel said.

Later, the samples were sent to Bhopal-based National Institute of High-Security Animal Diseases where tests were found positive for the H5N1 virus on December 23, he said.

"Immediately after getting reports of bird flu, we took permission from the Korea district administration, as per the standard procedure, and culled all 15,426 birds (chickens and quails) and destroyed 30,000 eggs in the farm and its adjoining areas," the official said.

Of the total culled birds, nearly 641 chickens were being reared by locals within one km radius of the farm. The locals were given compensation for the culling of their birds, he said.

"We have completed the culling process and sealed the farm. After sanitising the area in 10 km of its radius, we submitted a report to the state's directorate of veterinary services on Wednesday," Baghel said.

"No human has been affected due to the outbreak and the situation is under control. We are waiting for further directives from the higher authorities," he said.

The official said for the next three months, they will be conducting surveillance in 10 km radius of the affected area during which blood samples of birds will be regularly sent to Bhopal for testing.

"We will continue our observation for next three months," he added.

Meanwhile, state veterinary services director C R Prasanna said, "No human has so far been affected due to avian influenza and workers at the poultry farm at Baikunthpur have been given medicines as a precautionary measure."

Nearly 40 villages fall within the purview of 10 km radius of the affected area from where random sampling of poultry birds will be done for next three months to check whether they are infected with avian influenza, he said.

"Necessary steps are being taken to prevent bird flu from spreading to other areas," he added.

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