E-assessment Scheme, 2019 | CBDT Notification

In its bid to curb corruption by making tax filing and their review faceless, the government has come out with e-assessment scheme, 2019 making it mandatory for all communication between tax department and taxpayers to be done online. Now, tax notices will be issued by a centralised e-assessment centre requiring taxpayers to reply only through Read More …

CBDT Circulars On Prosecution Of Offenses And Compounding Of Offenses Under Direct Tax Laws

Circular No. 24 12019 F.No.2 85/08/2014-IT(Inv. V)/ 349 Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) ******* Room No. 515, 5th Floor, C-B1ock, Dr. Shyama Prasad Mukherjee Civic Cent re, Minto Road, New Delhi – ll 0002. Dated: 09.09.2019 Subject: Procedure for identification and processing of cases for prosecution Read More …

CBDT Circular On Bogus Long-Term Capital Gain (LTCG)/Short Term Capital Loss (STCL) On Penny Stocks

Several references have been received by the Board that in large number of cases where organised tax-evasion scam is noticed through bogus Long-Term Capital Gain (LTCG)/Short Term Capital Loss (STCL) on penny stocks and department is unable to pursue the cases in higher judicial fora on account of enhanced monetary limits. It has been reported that in large number of cases, ITATs and High Court have recognized the unique modus operandi involved in such scam and have passed judgements in favour of the revenue. However, in cases where some appellate fora have not given due consideration to position of law or facts investigated by the department, there is no remedy available with the department for filing further appeal in view of the prescribed monetary limits Read More …

Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20

Cases selected for ‘Limited Scrutiny’ but credible specific information has been/is received from any law- enforcement/intelligence/ regulatory authority or agency regarding tax-evasion in such cases, then only issue(s) arising from such information can be exam ined during the course of conduct of assessment proceedings in such ‘Limited Scrutiny’ cases, with prior administrative approval of the Pr. CIT/CIT concerned Read More …

Modification by CBDT in the new system of approval in respect of application under section 197 of Income Tax Act

Various administrative and systematic difficulties related to such amount of revenue forgone under the newly introduced system of online application uls 195/197 of the LT. Act 1961 in respect of non-resident taxpayers were brought to the notice of the Board Read More …

CBDT Consolidated circular No. 22/2019 dt. 30.08.2019 for assessment of Startups

In order to provide hassle-free tax environment to the Startups, a series of announcements have been made by the Hon’ble Finance Minister in her Budget Speech of 2019 and also on 23rd August, 2019. To give effect to these announcements, the Central Board of Direct Taxes (CBDT) has issued various circulars/clarifications in the matter. This circular consolidates all these circulars and further clarifies as under Read More …

Taxation Of Startups – Angel Tax: Complete Guide

This is a guide to the levy of “angel tax” on start-ups. It summarizes the legislative amendments made to the Income-tax Act 1961 and also the various circulars and instructions issued by the CBDT. Section 56(2)(viib) (Section) of the Indian Tax Laws (ITL) (popularly known as the “angel tax” provisions) is an anti-abuse provision which applies when a CHC issues shares (including preference shares) to a resident at a premium and receives consideration which is in excess of the FMV of the shares. The excess amount so received is deemed as income from other sources in the hands of the CHC in the year of issue of the shares Read More …

Ministry of Finance: Clarification on applicability of Tax Deduction at Source on cash withdrawals

The CBDT, having considered the concerns of the people, hereby clarifies that section 194N inserted in the Act, is to come into effect from 1st September, 2019. Hence, any cash withdrawal prior to 1st September, 2019 will not be subjected to the TDS under section 194N of the Act Read More …

CBDT Circular: Withdrawal of Pending cases after Enhancement of Monetary Limits

The CBDT has stated that it is clear that the revised monetary limits so mentioned in circular 17/2019 is applicable, to all pending SLPs/ appeals/ cross objections/references. All such pending appeals within the revised limits shall be withdrawn on or before 31.10.2019 and a fortnightly report as to progress on withdrawals should be submitted to Board, by 15th & 31st of every month Read More …