Monthly Archives: March 2018

Rationalisation of time limits for completion of assessment of Income Tax Returns

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 60. Rationalisation of time limits for completion of assessment, reassessment and re-computation and reducing the time for filing revised return. 60.1 The provisions of section 153 of the Income-tax Act specify the time limit for completion of assessment, reassessment and re-computation of cases mentioned therein. 60.2 In an effort to minimise human… Read More »

When can Income Tax Officer withhold refund of Assessee

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 59. Processing of return within the prescribed time and enable withholding of refund in certain cases. 59.1 Before amendment by the Finance Act, 2016, the provisions of sub-section (1D) of section 143 of the Income-tax Act specify that the processing of a return shall not be necessary, where a notice has… Read More »

Quoting of Aadhaar number to Income Tax Department

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 58. Quoting of Aadhaar number. 58.1 Many instances have come to notice where multiple PANs have been allotted to one person or one PAN has been allotted to multiple persons. In order to have a robust way of de-duplication of PAN database, a new section 139AA has been inserted to the… Read More »

Mandatory furnishing of return by certain exempt entities w.e.f AY 2018-19

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 57. Mandatory furnishing of return by certain exempt entities. 57.1 The provisions of sub-section (4C) of section 139 of the Income-tax Act mandate filing of return by certain entities which are exempt from the levy of income-tax. 57.2 In order to verify that certain entities which enjoy exemption under section 10 actually… Read More »

Centralized issuance of notice under Income Tax Act : Section 133C.

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 56. Legislative framework to enable centralised issuance of notice and processing of information under section 133C. 56.1 Section 133C of the Income-tax Act empowers the prescribed income-tax authority to issue notice calling for information and documents for the purpose of verification of information in its possession. 56.2 In order to expedite verification… Read More »

Extension of power to survey under Income Tax Act

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 55. Extension of the power to survey. 55.1 Before amendment by the Act, the provisions of section 133A of the Income-tax Act empowered inter alia an income-tax authority to enter any place, at which a business or profession is carried on, or at which any books of account or other documents… Read More »

Power to call for information under Income Tax Act

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 54. Rationalisation of the provisions in respect of power to call for information. 54.1 The provisions of section 133 of the Income-tax Act empower certain income-tax authorities to call for information for the purpose of any inquiry or proceeding under the Income-tax Act. The second proviso to the said section provides… Read More »

Provisional attachment during search under Income Tax Act and reference to Valuation Officer

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 53. Power of provisional attachment and to make reference to Valuation Officer to authorised officer. 53.1 Section 132 of the Income-tax Act provides the power of search and seizure subject to fulfilment of conditions specified therein. 53.2 In order to protect the interest of revenue and safeguard recovery in search cases, sub-sections… Read More »

Reason to believe to conduct Income Tax search, etc. not to be disclosed.

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 52. Reason to believe to conduct a search, etc. not to be disclosed. 52.1 Sub-sections (1) and (1A) of section 132 of the Income-tax Act provide that where an authority mentioned therein, based on the information in his possession, has ‘reason to believe’ or ‘reason to suspect’ of circumstances referred to… Read More »

CBDT Empowered to to issue directions in respect of penalty for failure to deduct or collect tax at source.

By | March 1, 2018
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CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 51. Empowering Board to issue directions in respect of penalty for failure to deduct or collect tax at source. 51.1 The provisions of clause (a) of sub-section (2) of section 119 of the Income-tax Act empower the Board to issue orders setting forth directions or instructions (not being prejudicial to assessees)… Read More »