Tax e filing


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B C Shetty & Co. will help you file your returns with ease.

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Tax e filing

  1. 1. E- Filing of Tax Audit Report
  2. 2. • Pursuant to amendment in Rule 12 of the Income Tax Rules, by the Notification no42 dated 11/6/2013, the following proviso has been inserted in sub- rule (2) of rule 12. • “Provided that where an assessee is required to furnish a report of audit specified under subclauses (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, clause (b) of sub-section (1) of section 12A, section 44AB, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section80LA, section92E or section 115JB of the Act, he shall furnish the same electronically.”
  3. 3. WHY E -FILING OF TAX AUDIT REPORT • Minimize chances of mismatch between the return and report • CA can keep track of his limit of tax audit. (45) • There may be cases where Assessee deliberately do not disclose the disallowance/ remarks of tax auditor • Earlier since signed report was not available, it was difficult for the Income Tax Department to trace such instances.
  4. 4. SYSTEM REQUIREMENTS TO OPERATE E- UTILITY • At least your system configuration Microsoft XP Service Pack 3 or Higher like windows 7 /8. • RAM 2 GB for faster data entry and speed your work on e-utility. • Java Run Time Environment Version 7 update 6 to be downloaded from e- filing web sites. • Remove All Previous Versions Of Java from Your PC.
  5. 5. Preparation of Utility
  6. 6. Uploading of form- First Screen
  7. 7. Uploading of form- After Input of DATA
  8. 8. FOUR ATTACHMENTS REQUIRED TO BE UPLOADED ALONG WITH TAX AUDIT REPORT • 1. Balance Sheet (Mandatory) • 2. Profit & Loss Account (Mandatory) • 3. Cost Audit Report • 4. Excise Audit/other audit report • Attachments must be either in “tiff” or “pdf” format and with size up to 20 MB • Though Notes to Accounts are not mandatory but as a prudent practice they should also be submitted along with these documents as they are parts of BS & PL.
  9. 9. Error message- if any
  10. 10. ERROR ON UPLOADING & ITS IDENTIFICATION • The E-filing Site Sometimes Shows Error While Uploading Xml Of TAR, ITR & Other Forms. • The error is in XML language and cannot be easily identifiable. Error can be located by opening xml file in internet explorer and using search option e.g.:- 1. <OCDI_Description> • • 2. <Related PAN> 3. <RelatedParyType>
  11. 11. Confirmation of uploading
  12. 12. Assesse account position before approval
  13. 13. Form approved
  14. 14. Form rejected- reasons to be given
  15. 15. Checking of status from Income Tax Website
  16. 16. My Account----View Forms View Forms displays the list of Forms uploaded by CA for an assesse. The CA will type the PAN of the assesse and clicks SUBMIT button
  17. 17. PENALTY • Penalty U/s 271B for non- filing of Tax Audit Report becomes live again. • It is necessary for assessee to approve the tax audit report uploaded by CA before the due date of filing the tax audit report else it will be assumed that no tax audit report has been furnished by the assessee.
  18. 18. NO PRINT OPTION TO CHECK FILLED DATA IN E UTILITY • The E-PR 7 Utility Is Only For Saving the Draft In Xml Format. It Is Not For Viewing The Filled Data. • As Such The Tax Auditor Is Not In A Position To Check Possible Inconsistency/ Error. • View The Data Using Microsoft Access 2010 Or Higher. The Process Is As Below:-
  19. 19. • Step 1: Creating a Blank Database • Open MS Access- Create a Blank Database File
  20. 20. • Step 2: Importing the desired XML file Click on External Data Tab • In the Import Option Category -Click on XML File • 1Click on External Data tab as pointed above 2Then Click on XML Filee
  21. 21. • Browse for the relevant xml file location • Step 3- Browse the location of the XML file to be imported Browse for the relevant xml file location
  22. 22. Step 4 - Select “Structure and D T ” in the Import XM L option that pops up and Click on OK.
  23. 23. Step 5 - The Desired XML files stands imported in a gets listed in a tabular manner in the left hand. And Here you Go !! The tables gets listed here. Click on the respective tables and see the desired details as filled by you in the e-PR7 utility under those heads.
  24. 24. Signed Copy Vs. SD/- Copy Vs. Digitally Signed • In E -Filing Website It Is Clearly Given That “Where there is a requirement in the form to submit a signed copy of documents by an assessee/CA as an attachment, Upload the Scan Copy of the attachments. • In My View it is safer to upload Physically Signed Copy Of Audit Report + Balance Sheet + Statement of Profit And Loss +Notes To Accounts. • Sd/- Signed Copy is to be Avoided. • You can upload digitally signed Copy of Audit Report + Balance Sheet + Statement of Profit And Loss +Notes To Accounts.
  25. 25. The Process is as follows :1. Install The Digital Signature/ Pfx File Of Client & CA. 2. Open the Word/Excel File 3. Place Cursor where u want to digital sign 4. In Microsoft word/Excel Go To Tab “INSERT” and Click On “Signature Line” 5. Click On OK 6. Fill the Data as per screen Shot and Click “OK”
  26. 26. 7. Repeat the same process 3 to 6 for Putting Digital Sign of Your Client by placing cursor at another place 8. After the Process your file appears as follows:-
  27. 27. 9. Click on each symbol and Fill the Name in X and Select the Digital signature by using Change Option and SIGN 10. Repeat the process Stated In 9 for your client also. 11. Convert the word/Excel File In PDF.
  28. 28. DIGITAL SIGNATURE IN PDF FILE • You can digitally sign your pdf documents from the following link:- • • Create a JPG Image of your Signature. • Follow the steps required in the following link like showing the path of your Digital Signature, Show the files you wish to sign and choose location where you sign in the page (Preferable last page). • After Signing Save the documents.
  29. 29. TAX AUDIT UNDER SECTION 44AD, 44AE AND 44AF • Tax Audits conducted under section 44AD, 44AE and 44AF of the Income-Tax act, 1961 shall not be taken into account for the purpose of reckoning the “specified number of tax audit assignments”.i.e..... 45 Limits.
  30. 30. STRINGENT ACTION BY ICAI If any member uploads more than 45 Tax Audit reports of 44AB then later on ICAI may take stringent action. ICAI Allowed todata of members uploaded the access Tax Audit Report.
  31. 31. WHETHER PARTNER CAN SIGN & UPLOAD TAR ON BEHALF OF ANOTHER PARTNER Yes One Partner can sign on behalf of another partner and upload it to e filing web site subject to condition that the overall limit does not exceed.
  32. 32. COMPUTER VERY SLOW AFTER OPENING E- UTILITY • If your system is getting slow down during the working on e-utility it may be due to 2 or more versions of java on the system; remove old version of java to improve performance. • After removal data entry becomes very fast.
  33. 33. INHERITENT ERROR FOR YES /NO OPTION • The e-filing utility has some inherent errors to the extent that after a draft saved file is reopened at least 10 fields asking for „yes” or “no” has to be re-entered as many number of times one reopens the draft saved data xml file. These fields are clause no's 7(b), 8(b),9(a),10, 11(d), 12 (b), 21(note), 22(a), 22 and 23. • Do not Worry the XML File Contains Right Data.
  34. 34. INHERITENT ERROR FOR QUANTITATIVE DETAILS • The display in clause no 28 of Tax Audit Report (quantitative details) also shows only one row on reopening of the draft leading to misbelieve that whether data in only one row was entered?. The other rows gets themselves hide in the software resulting into unnecessary embarrassment to the person feeding the data. • Do not worry the XML File Contains All Data. You can view your data by opening XML File In Internet Explorer or by using Microsoft Access.
  35. 35. INHERITENT ERROR FOR 269SS & 269T DETAILS • In case the no of entries therein exceed 25 items, the same are not appearing in the pdf downloaded by the assessee however, the same is appearing in the xml file uploaded by the auditor. • In such a situation, the assessee will always be tempted to reject the 3cd uploaded by the auditor
  36. 36. REJECTION OF TAR UPLOADED NEEDS FRESH DATA ENTRY IN UTILITY • The e-filing web site does not allow the tax auditor to upload the same xml file which has been rejected by the assessee due to any error. • The e filing site flashing a reason that the DSC of the tax auditor is invalid instead of creation of new xml file.
  37. 37. ADDRESS ERROR • While Filing Address In Form 3CA,3CB, PARTA of Form 3CD, and in 269SS & 269T the use of special characters like ,(Comma) - (Minus) is to be avoided. • E- Filing Site Shows Errors at the time of Uploading.
  38. 38. REVISED TAX AUDIT REPORT • As per GUIDANCE NOTE ON TAX AUDIT UNDER SECTION 44AB OF THE INCOME-TAX ACT, 1961 However, sometimes a member may be required to revise his tax audit report on grounds such as: (i) revision of accounts of a company after its adoption in annual general meeting. (ii) change of law e.g., retrospective amendment. (iii) change in interpretation, e.g. CBDT Circular, judgements etc.
  40. 40. PROBLEM OF “C NNOT RE DXML FILE” THE In case of windows vista/windows 7, •Go to start-->control panel--> program--> java-> general tab. • click on “settings” button in 'temporary internet files'. • kindly uncheck the “keep temporary files on my computer” and • click the “delete files” button and press ok. • close your existing browser and open a new browser.
  41. 41. Offline Forms (Other than ITR) Given In E-Utility Form Name Form Description Form3CA/3CB-3CD Tax Audit Report Form 3CEB International Transaction(s) Form 29B Report Under Section 115JB Form 6B Audit Report Under Section 142(2A) Form 10B Charitable Or Religious Trusts Or Institutions Form 10BB Institution Or Any University Or Other Educational Institution
  42. 42. Issues ICAI WEBCAST Issue Date of Receipt of Audit Report (Whether Date of filing by CA or date of Acceptance by Assessee) Mismatch between PAN date of Birth and Date of Birth in ICAI database Resolution While Audit Report will become valid on acceptance by Assessee, Date of upload would be treated as date of filing PAN Correction is the correct resolution DSC May be dispensed with Not acceptable. 10/19/1 2
  43. 43. Issues ICAI WEBCAST Issues Resolution Guidance Note on tax audit ICAI had suggested that u/s 44AB of the Income-tax separate column may be Act, 1961” requires the tax No. created withof Form in Para 3 of Form 3CA/ Para 3(a) the clause auditor to meNo.3CB,his itself; this would require a observations/reservations, if change in the form by TPL. any, in respect of various More space is being created. clauses of Form No.3CD in Form No.3CD itself for the ease of the AOs A sub Committee of ICAI and ITD examining the additional space in Para 3 of Form No. 3CA/ Para 3(a) of Form No.3CB, 10/19/1 2
  44. 44. ICAI WEBCAST Issues Resolution Word limit has been fixed for More space is being created. reporting in the e-filing A sub Committee of ICAI schema like under eachForm No. and ITD 3(a) of Form the in Para 3 of 3CA/ Para examining clause of ForNo.3CB, 3CD limit additional space is set at 100, for observations requirements and comments the limit is fixed at 1000/2000, for ratios and computation thereof the limit is 30 10/19/1 2
  45. 45. ICAI WEB CAST Issues Resolution Capturing Signatures of ICAI pointed out that only More than one CA in the in the case of disagreement Capturing Signatures of More than one CA in instance of joint instance of joint Audits. Para 3(a) of separate reports Audits. would two Form the be required to be filed. Thus Revised AuditAccording to the institute in case joint Auditors disagree there may be more than one Audit report enabled under DSC of different CAs are enabled Revised Reports can be filed 10/19/1 2
  46. 46. ICAI WEB CAST Issues Resolution The facility of import of data For ITD to Provide form multiple formats (Excel import facility for etc.) should be created to No. multiple3(a) of Formmay in Para 3 of Form 3CA/ Para formats prevent tedioNo.3CB,a entry/ not be viable. ICAI/ dta entry errors especially ERIs can consider with regards to depreciation working on such schedule and other large schedules Utilities. However a standard CSV format for Depreciation schedule shall be made available to permit 10/19/1 2
  47. 47. ICAI WEB CAST Issues Resolution 17- Separate disclosure While a change in the for different nature of form is being suggested disallowance is not of Form No. to TPL 3(a) of Form in Para 3 3CA/ Para No.3CB, possible Increasing space for Under this clause only single remarks at the end of amount of disallowance can the form is being be specified in sub-clauses worked out subject to 17(a)/ (b)/ (c)/ (d)/ (e)/ (f). overall limit of 50MB 10/19/1 2
  48. 48. ICAI WEB CAST Issues Resolution •PAN to not be a mandatory field in the 206A cases These issues stand resolved. . 3CA/ Para 3(a) of Form •No order nu in Para 3 of Form No brought forwNo.3CB,ss reference order PDF documents/ Text or •Difficulty in uploading Excel documents can be scanned P&L accounts and uploaded. Working on balance sheets convergence with MCA 10/19/1 2
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