400,000 taxpayers to face scrutiny under new e-assessment system

Notices were being served to a little over 100,000 assesses, seeking explanation on the returns filed within 15 days

The income-tax (I-T) department has identified about 400,000 taxpayers who will face scrutiny under the new faceless assessment scheme. Notices were being served to a little over 100,000 assesses, seeking explanation on the returns filed within 15 days, said an official privy to the development. However, about 10,000 such letters were undelivered and, in some cases, bounced back. The deadline of sending scrutiny letters ends on September 30.

The tax department is learnt to have finalised computer-assisted scrutiny selection (CASS) cycle for the current year and has selected about 100 parameters to scrutinise returns under the new system. Sources said some of the parameters, based on which notices were served, included undisclosed foreign income and immovable properties, high-value transactions, misreporting of long-term capital gains, TDS claimed not matching with the tax forms, non-disclosure of investments made in the name of spouse, relatives, filing defective return, tax evasion in earlier years, and so on.

According to the action plan, the e-assessment may not be fully faceless initially, as the jurisdiction assessing officer would be knowing the profile of the assessee and can also view it at the time of serving notices. “For CASS 2019, the notices shall be generated and issued in a centralised manner by the prescribed tax authority, for cases selected for scrutiny. After the issuance of notices, further assessment proceedings shall be conducted by the jurisdictional assessing officer in a regular manner through Income-tax Business Application (ITBA),” according to the assessment module prepared by the I-T department…

Income Tax dept revises Form 16: Here’s all you need to know

The amended form will come into effect from May 12, 2019. This means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16

The Income Tax department has revised Form 16 by adding various details, including income from house property and remuneration received from other employers, thereby making it more comprehensive to help check tax avoidance. The amended form will come into effect from May 12, 2019. This means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16. Form 16 is a certificate issued by employers, giving details of employees’ TDS (tax deducted at source) usually by mid June and is used in filing I-T returns.

Here’s the revised Form 16

The move is aimed at stricter scrutiny of claims made by assessees to check tax avoidance or evasion. The Income-tax Act, 1961 requires every employer to issue a certificate giving details of salary along with the tax deducted at source (TDS) of each its employee in Form 16. 

It will also include segregated information regardingdeductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources. The I-T department has already notified income tax return forms for fiscal 2018-19. Salaried class and those who do not have to get their accounts audited, will have to file their ITRs by July 31 this year.

Meanwhile, the income tax department has also modified Form 24Q, which is furnished by employer to the tax department. It will include additional details like Permanent Account Number (PAN) of non-institutional entities from whom the employee has taken loan for buying or constructing housing property….

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Income Tax return processing time to reduce from 63 days to just 1 day

Under the new system, Infosys will handle end-to-end solution – from e-filing to return assessment to refund processing

Economy News: The Union Cabinet on Wednesday approved an integrated income-tax e-filing and centralised processing centre (CPC) portal, which will reduce the return processing time from 63 days to just one day. The new portal is also expected to process the refunds within one day of filing of tax returns, in huge relief for taxpayers. However, one will have to wait for 18 months to see its launch.

“Earlier, taxpayers would face troubles because of delay in refund processing and the CBDT used to spend a lot of money every year as interest on pending refunds, which will be history now,” Union minister Piyush Goyal told reporters after the Cabinet meeting here.

Last month, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra had said a simplified return form and process would be put in place soon in which the department would process the self-declaration made by the taxpayer. The new Rs 4,241-crore project will incorporate these changes.

Contain By: Business Standard

I-T raids on houses, offices of Sasikala and Dhinakaran across 160 places

Offices of Namadhu MGR, Jaya TV and Jazz Cinemas, residence of Sasikala’s husband Natarajan also raided

Income-tax officials have been raiding homes and companies belonging to the jailed All India Anna Dravida Munnetra Kazhagam (AIADMK) leader VK Sasikala and her relatives, including TTV Dhinakaran. Both Sasikala and Dhinakaran are rivals to the ruling AIADMK faction. (IT raids on Dinakaran)

The raid started at 6 am this morning across 160 places in Tamil Nadu, besides Bengaluru, Puducherry and Delhi. These places included former Jayalalithaa’s house at Poes Garden, Dhinakran’s house at Adyar and residence of other leaders, their relatives and party functionaries, in addition to the offices of Jaya TV as well as Jaya TV’s top official and management houses . Among the companies being raided are the AIADMK mouthpiece Namadhu MGR, Jaya TV and Jazz Cinemas.

Dhinakaran’s faction alleged that this is a personal revenge against him. They also alleged that ruling faction is trying to take control of Jaya TV and Namadhe MGR.

The residence of Sasikala’s husband Natarajan in Thanjavur was also raided.

At the offices of Namadhu MGR and Jaya TV, very few staff members were present when the I-T officials raided. I-T officials also visited the residence of Dhinakaran in Adyar.