The document discusses various provisions and procedures related to the recovery of income tax in India. It explains that the primary duty of collecting tax demand lies with the Assessing Officer who raised the demand. It outlines planning steps like collecting asset details, provisional attachment, and early service of demand notices. It also describes the different recovery measures available to tax authorities ranging from persuasive actions to coercive actions like penalty, attachment of assets or salary, recovery by sale of movable property, and liability of legal representatives.
This document provides a summary of provisions related to tax collection and recovery in India. It discusses key sections of the Income Tax Act that deal with collection and recovery (sections 220-232). It outlines the legislative history of changes to various sections over time. It then discusses the concepts of an "assessee in default" and levy of interest on defaulted payments. Specific topics covered include when tax is payable, deeming a taxpayer in default, computation of interest on defaulted payments, and how interest is adjusted in cases where the tax demand amount changes over time such as due to appeals.
This document provides an overview of tax collection and recovery provisions under the Income Tax Act of India (Sections 190-234D). It discusses general principles of deduction at source, direct payment of tax, and various types of deductions including for salaries (Section 192), interest on securities (Section 193), and dividends (Section 194). The summary focuses on high-level topics covered rather than detailed legal provisions.
The document outlines procedures for the collection and recovery of tax in Pakistan. It discusses:
- Due dates for tax payment and options for installment plans or extensions.
- Recovery of unpaid taxes through attachment of property, appointment of receivers, or arrest of taxpayers.
- Recovery assistance from district revenue officers, bankruptcy estates, private companies, and persons holding money for taxpayers.
- Specific procedures for non-resident ship owners, aircraft owners, and persons about to leave the country.
This document outlines procedures for the collection and recovery of tax in Pakistan, including:
- Due dates for tax payment and options for installment plans or extensions.
- Recovery methods for unpaid taxes such as attaching and selling property, appointing receivers, or arresting the taxpayer for up to 6 months.
- Specific provisions for private companies, associations of persons, bankruptcies, non-residents, ships/aircrafts, and persons leaving the country to ensure taxes can still be recovered.
- Powers given to the Commissioner and District Officers to certify unpaid taxes and recover them as if they were civil debts or land revenue.
The document discusses refunds under tax law. It states that a taxpayer who has paid excess tax may apply for a refund within two years of the tax assessment or payment. The Commissioner must refund any excess paid after applying it against other outstanding taxes. If a refund is not paid within three months, the taxpayer is entitled to additional compensation at the KIBOR interest rate until the refund is paid. Appeals procedures are outlined for taxpayers aggrieved by refund decisions.
This document outlines procedures for filing tax returns in Pakistan. It specifies that companies, high income individuals, non-profit organizations, and others must file an annual tax return. Returns must be filed electronically and include information about income, taxes paid, and assets/wealth. Exceptions to filing are provided for low income salaried individuals and certain property owners. Extensions may be granted for returns in cases of travel, illness or other reasonable causes.
Basics of income tax assessments and appealsAmeet Patel
A brief presentation made be me to an audience consisting of semi qualified accountants giving the basics of Income-tax assessments and appeals in India. The contents may undergo a change from time to time based on amendments to the Indian Income-tax Act, 1961.
The document discusses the process for filing an appeal before the Income Tax Appellate Tribunal (ITAT) and the Honorable High Court against an order of the Commissioner of Income Tax (Appeals). It provides details on the required forms and documents for filing an appeal to the ITAT, including the grounds of appeal. It also outlines the steps involved in filing an appeal before the High Court, such as obtaining approval from the Chief Commissioner of Income Tax and preparing relevant documents and authorization letters.
This document provides a summary of provisions related to tax collection and recovery in India. It discusses key sections of the Income Tax Act that deal with collection and recovery (sections 220-232). It outlines the legislative history of changes to various sections over time. It then discusses the concepts of an "assessee in default" and levy of interest on defaulted payments. Specific topics covered include when tax is payable, deeming a taxpayer in default, computation of interest on defaulted payments, and how interest is adjusted in cases where the tax demand amount changes over time such as due to appeals.
This document provides an overview of tax collection and recovery provisions under the Income Tax Act of India (Sections 190-234D). It discusses general principles of deduction at source, direct payment of tax, and various types of deductions including for salaries (Section 192), interest on securities (Section 193), and dividends (Section 194). The summary focuses on high-level topics covered rather than detailed legal provisions.
The document outlines procedures for the collection and recovery of tax in Pakistan. It discusses:
- Due dates for tax payment and options for installment plans or extensions.
- Recovery of unpaid taxes through attachment of property, appointment of receivers, or arrest of taxpayers.
- Recovery assistance from district revenue officers, bankruptcy estates, private companies, and persons holding money for taxpayers.
- Specific procedures for non-resident ship owners, aircraft owners, and persons about to leave the country.
This document outlines procedures for the collection and recovery of tax in Pakistan, including:
- Due dates for tax payment and options for installment plans or extensions.
- Recovery methods for unpaid taxes such as attaching and selling property, appointing receivers, or arresting the taxpayer for up to 6 months.
- Specific provisions for private companies, associations of persons, bankruptcies, non-residents, ships/aircrafts, and persons leaving the country to ensure taxes can still be recovered.
- Powers given to the Commissioner and District Officers to certify unpaid taxes and recover them as if they were civil debts or land revenue.
The document discusses refunds under tax law. It states that a taxpayer who has paid excess tax may apply for a refund within two years of the tax assessment or payment. The Commissioner must refund any excess paid after applying it against other outstanding taxes. If a refund is not paid within three months, the taxpayer is entitled to additional compensation at the KIBOR interest rate until the refund is paid. Appeals procedures are outlined for taxpayers aggrieved by refund decisions.
This document outlines procedures for filing tax returns in Pakistan. It specifies that companies, high income individuals, non-profit organizations, and others must file an annual tax return. Returns must be filed electronically and include information about income, taxes paid, and assets/wealth. Exceptions to filing are provided for low income salaried individuals and certain property owners. Extensions may be granted for returns in cases of travel, illness or other reasonable causes.
Basics of income tax assessments and appealsAmeet Patel
A brief presentation made be me to an audience consisting of semi qualified accountants giving the basics of Income-tax assessments and appeals in India. The contents may undergo a change from time to time based on amendments to the Indian Income-tax Act, 1961.
The document discusses the process for filing an appeal before the Income Tax Appellate Tribunal (ITAT) and the Honorable High Court against an order of the Commissioner of Income Tax (Appeals). It provides details on the required forms and documents for filing an appeal to the ITAT, including the grounds of appeal. It also outlines the steps involved in filing an appeal before the High Court, such as obtaining approval from the Chief Commissioner of Income Tax and preparing relevant documents and authorization letters.
The document discusses penalties and prosecutions under India's tax laws. It outlines various defaults that can invite penalties such as failure to pay taxes on time or provide required records. Penalties range from interest charges to prosecution and imprisonment for serious offenses. While penalties are meant to deter non-compliance, some leniency exists such as reducing penalties for voluntary disclosures. Prosecution is necessary for tax evasion since monetary penalties alone are not a strong enough deterrent for willful defaulters.
This document provides an overview of key concepts related to income tax assessment in Pakistan. It defines income tax and outlines the types of income that are taxable. It discusses the different types of taxpayers including individuals, associations of persons, companies, and governments. It also defines resident and non-resident taxpayers. The document then explains the different tax years and the process of universal self-assessment where tax returns are treated as assessment orders. It discusses the commissioner's powers to amend assessments, make provisional assessments, and rectify mistakes. Key points covered include the timeline to amend assessments, treatment of provisional assessments, and assessments for disputed property ownership.
Income tax-notes PUNJAB UNIVERSITY LAW COLLEGENOMI BRO
The document discusses various aspects of income tax assessment in Pakistan, including:
1) Section 120 discusses self-assessment, where a complete tax return is deemed to be the assessment order issued by the Commissioner.
2) Section 121 allows the Commissioner to make a best judgment assessment if a person fails to file a return or provide required information.
3) Section 122 allows the Commissioner to amend an assessment within 5 years to ensure correct tax liability. Amended orders are treated as assessment orders.
The document discusses various sections of Pakistan's Income Tax Ordinance related to assessments. It explains key concepts like self-assessment under Section 120, best judgment assessments under Section 121 when a return is not filed, amendment of assessments under Section 122, provisional assessments under Section 122C, and assessment of disputed property under Section 125. Rectification of mistakes under Section 221 is also mentioned. Comparison points between Pakistan and India's types of assessments and income are provided.
The document summarizes provisions related to revision of orders by the Commissioner of Income Tax under sections 263 and 264 of the Income Tax Act. Section 263 allows revision of orders prejudicial to revenue, while section 264 allows revision in favor of the assessee. Key details include the types of orders that can be revised, time limits, procedures to be followed, and scope of the Commissioner's powers under each section.
The document provides instructions and information for preparing quarterly electronic Tax Deducted at Source (eTDS) returns for the 2009-10 assessment year in India. It discusses the key systems and processes involved like the Online Tax Accounting System (OLTAS) and Electronic Return Acceptance and Consolidation System (ERACS). It outlines the filing requirements and formats for different eTDS forms, and provides guidance on using the Return Preparation Utility (RPU) software to generate the required file format.
The document summarizes key provisions related to rectification of mistakes under section 154 and 155 of the Income Tax Act.
[1] Section 154 allows the income tax authority to amend orders to rectify mistakes apparent from records. Rectification can be done on the authority's own motion or on application from the assessee.
[2] Section 155 allows amendment of orders related to partners/members if the firm/AOP/BOI assessment is amended, and amendment of orders to account for recomputed losses or depreciation allowances.
[3] Time limits for rectification are generally 4 years from the end of the assessment year, or 6 months if applied by the assessee.
Income tax notice under scruitny assessementsOnlineITreturn
Income Tax Notice for Scrutiny Assessments under Income Tax Act 1961 are made u/s 143(3) if the Assessing Officer considers it necessary or expedient to ensure that-
(a) the assessee has not understated the income or has not computed excessive loss; or
(b) has not underpaid he tax in any manner.
Guided by “Sabka Saath, Sabka Vikas, Sabka Vishwas”, the Finance Minister Smt. Nirmala Sitharaman had introduced a new No Dispute but Trust Scheme – ‘Vivad Se Vishwas’ in the Budget 2020 in the Lok Sabha on 5th February, 2020. Expectations are that the new scheme will work better than erstwhile similar scheme “The Direct Tax Dispute Resolution Scheme, 2016”, given the kind of cases that are in appeal.
To know more:https://itatorders.in/blog/eligible-person-under-vivad-se-vishwas-scheme-2020/
Get consultation under the VSV scheme and calculate your taxes : https://www.itatorders.in/vsvcalculator
The document provides information on appeal procedures under the Indian Income Tax Act. It defines an appeal as an application to a higher court to reverse a lower court's decision. The Commissioner of Income Tax (Appeals) is the appellate authority for appeals against orders from the Assessing Officer. The timeline to file an appeal is 30 days from the date of the order. Appeals can also be made to the Income Tax Appellate Tribunal and higher courts on certain orders.
Section 207 discusses advance tax, which is payable on total income chargeable to tax for the assessment year immediately following the financial year. Advance tax is paid as income is earned throughout the year.
Sections 208-211 provide more details on advance tax payment requirements. Advance tax must be paid in installments if tax liability is over Rs. 10,000. Companies must pay in 4 installments while others pay in 3 installments.
Failure to pay advance tax when required makes the taxpayer an "assessee in default" subject to interest under sections 234B, 234C and penalty under section 140A.
This document summarizes key changes to penalty provisions under the Indian Income Tax Act as a result of the Finance Bill 2016. It discusses the replacement of Section 271(1)(c) with new Sections 270A and 270AA which establish fixed rates for penalties for underreporting and misreporting of income. It also outlines penalties under Sections 271AAB, 272A, 273AA, and 271GB for cases involving concealed income detected during searches, failure to comply with tax notices, granting immunity from penalties, and failure to furnish country-by-country reports for multinational enterprises.
Taxmann's Direct Taxes Manual (Set of 3 Volumes) - 2021Taxmann
Taxmann’s Direct Taxes Manual is a compilation of annotated, amended and updated:
• Income-tax Act, 1961
• Income-tax Rules, 1962
• Circulars & Notifications
• Allied Laws
• Law Lexicon
• Gist of Landmark Rulings
The Present Publication is the 51st Edition, comes in a set of 3 volumes, that incorporates all changes made by the following:
• Volume 1 – The Finance Act, 2021 & the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Volume 2 – The Income-tax (Eighth Amendment) Rules, 2021
• Volume 3 – Law stated is amended up to 1st March, 2021
Taxmann’s Direct Taxes Manual incorporates the following noteworthy features:
• [Bestseller Series] Taxmann's series of Bestseller Books for more than Five Decades
• [Zero Error] Follows the six-sigma approach, to achieve the benchmark of 'zero error'
Published in three volumes:
○ Volume 1 incorporates the Income-tax Act, 1961 as amended by the Finance Act, 2021 & Taxation & Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020. It also contains other Allied Acts
○ Volume 2 incorporates the Income-tax Rules as amended by the Income-tax (Eighth Amendment) Rules, 2021. It also incorporates New Return Forms & Revised Rules and Forms along-with New Rules relating to Charitable Trusts. It also contains other Allied Rules
○ Volume 3 incorporates the following:
• [Schemes] All schemes relevant under the Income-tax Act, 1961
• [Words & Phrases] as defined by various Courts and Tribunals
• [Circulars, Clarifications & Notifications | 1961 – February 2021] Gist of all Circulars and Notifications which are in force
• [Case Laws | 1922 – February 2021] Digest of all landmark rulings by the Apex Court, High Courts & Tribunals
• [Models & Drafts] Specimen, models, and drafts of deeds, letters such as indemnity bond, reply to notices, etc.
Taxmann’s Income Tax Act covers the annotated text of the Income-tax Act, 1961, in the most authentic, amended & updated format.
The Present Publication is the 66th Edition & Updated till the following:
• The Finance Act, 2021
• The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
The noteworthy features of the book are as follows:
• [Bestseller Series] Taxmann’s Bestseller Book for more than Five-Decades
•[Zero Error] Follows the Six Sigma Approach to achieve the Benchmark of ‘Zero Error’
• [Legislative History of Amendments], since 1961
• [Relevant provisions of all other allied laws] referred to in the Income-tax Act
• Comprehensive Table of Contents
• [Quick Navigation] Relevant Section Numbers are printed in Folios for Quick Navigation
• Annotation under each section shows:
○ Relevant Rules & Forms
○ Relevant Circulars & Notifications
○ Date of enforcement of provisions
○ Allied Laws referred to in the Section
• The contents of the book are as follows:
○ Division One – Income-tax Act, 1961
• Arrangement of Sections
• Text of the Income-tax Act, 1961 as amended by the Finance Act, 2021 and Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Appendix: Text of provisions of Allied Acts/Circulars/Regulations referred to in Income-tax Act
• Subject Index
○ Division Two – Finance Act, 2021 & Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Text of the Finance Act, 2021
• Text of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Notifications issued under Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Also available in Taxmann’s Virtual Book Format (An e-Book Initiative for un-interrupted reading experience).
• Now Claim 10% Cashback (when you purchase Taxmann’s Income Tax Act), Redeemable at Taxmann’s Online Bookstore.
This document summarizes the different types of income tax assessments in India:
1) Self-assessment where taxpayers determine their own tax liability before filing their return.
2) Summary assessment where the tax authority can make minor adjustments to a return without an order.
3) Scrutiny assessment where the authority scrutinizes returns and may request documents from taxpayers.
4) Best judgement assessment done without taxpayer participation where they failed to file or comply with notices.
5) Reassessment allows reopening past assessments if escapement of income is found within 4-6 years.
Income tax appeals and Revision by abhishek muraliAbhishek Murali
Art of Preparation and Presentation of Income Tax Appeals by CA Abhishek Murali, Direct Tax Committee Chairman of Southern India of the ICAI. Presented with Hon'ble Pr.CCIT of Tamil Nadu and Puducherry, Mr.Sushil Khumar, IRS.
Comprehensive preparation and process of Appeals
The document contains three requests for adjournment or additional time related to tax assessment cases for RRB Consultants & Engineers Pvt. Ltd. for various assessment years. In the first request, the authorized signatory asks that a case scheduled for August 19, 2005 be adjourned to the first week of September due to the dealer being in the process of collecting forms from customers. In the second request, dated July 20, 2006, the authorized signatory asks that an appeal case scheduled for July 25, 2006 be adjourned as the company's counsel will be out of station. In the third and final request dated September 4, 2008, the authorized signatory asks that an assessment case be adjourned for
Case laws update - V. K. Subramani - Article published in Business Advisor, dated September 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
STAY of collection of tax..........................................pptxssuser510f6e
The document discusses provisions related to staying tax demands when an appeal has been filed. It provides details on:
1) Taxpayers can apply to the Assessing Officer to stay a tax demand under section 220(6) while their appeal is pending, to avoid being treated as defaulting.
2) The application must demonstrate prima facie merits of the appeal and financial hardship of paying the disputed demand.
3) The Assessing Officer must consider the application judicially and not reject it arbitrarily, providing reasons for any dismissal.
4) The demand is stayed until the application is disposed of, and penalties cannot be imposed during this time as the taxpayer is not considered defaulting.
The document discusses penalties and prosecutions under India's tax laws. It outlines various defaults that can invite penalties such as failure to pay taxes on time or provide required records. Penalties range from interest charges to prosecution and imprisonment for serious offenses. While penalties are meant to deter non-compliance, some leniency exists such as reducing penalties for voluntary disclosures. Prosecution is necessary for tax evasion since monetary penalties alone are not a strong enough deterrent for willful defaulters.
This document provides an overview of key concepts related to income tax assessment in Pakistan. It defines income tax and outlines the types of income that are taxable. It discusses the different types of taxpayers including individuals, associations of persons, companies, and governments. It also defines resident and non-resident taxpayers. The document then explains the different tax years and the process of universal self-assessment where tax returns are treated as assessment orders. It discusses the commissioner's powers to amend assessments, make provisional assessments, and rectify mistakes. Key points covered include the timeline to amend assessments, treatment of provisional assessments, and assessments for disputed property ownership.
Income tax-notes PUNJAB UNIVERSITY LAW COLLEGENOMI BRO
The document discusses various aspects of income tax assessment in Pakistan, including:
1) Section 120 discusses self-assessment, where a complete tax return is deemed to be the assessment order issued by the Commissioner.
2) Section 121 allows the Commissioner to make a best judgment assessment if a person fails to file a return or provide required information.
3) Section 122 allows the Commissioner to amend an assessment within 5 years to ensure correct tax liability. Amended orders are treated as assessment orders.
The document discusses various sections of Pakistan's Income Tax Ordinance related to assessments. It explains key concepts like self-assessment under Section 120, best judgment assessments under Section 121 when a return is not filed, amendment of assessments under Section 122, provisional assessments under Section 122C, and assessment of disputed property under Section 125. Rectification of mistakes under Section 221 is also mentioned. Comparison points between Pakistan and India's types of assessments and income are provided.
The document summarizes provisions related to revision of orders by the Commissioner of Income Tax under sections 263 and 264 of the Income Tax Act. Section 263 allows revision of orders prejudicial to revenue, while section 264 allows revision in favor of the assessee. Key details include the types of orders that can be revised, time limits, procedures to be followed, and scope of the Commissioner's powers under each section.
The document provides instructions and information for preparing quarterly electronic Tax Deducted at Source (eTDS) returns for the 2009-10 assessment year in India. It discusses the key systems and processes involved like the Online Tax Accounting System (OLTAS) and Electronic Return Acceptance and Consolidation System (ERACS). It outlines the filing requirements and formats for different eTDS forms, and provides guidance on using the Return Preparation Utility (RPU) software to generate the required file format.
The document summarizes key provisions related to rectification of mistakes under section 154 and 155 of the Income Tax Act.
[1] Section 154 allows the income tax authority to amend orders to rectify mistakes apparent from records. Rectification can be done on the authority's own motion or on application from the assessee.
[2] Section 155 allows amendment of orders related to partners/members if the firm/AOP/BOI assessment is amended, and amendment of orders to account for recomputed losses or depreciation allowances.
[3] Time limits for rectification are generally 4 years from the end of the assessment year, or 6 months if applied by the assessee.
Income tax notice under scruitny assessementsOnlineITreturn
Income Tax Notice for Scrutiny Assessments under Income Tax Act 1961 are made u/s 143(3) if the Assessing Officer considers it necessary or expedient to ensure that-
(a) the assessee has not understated the income or has not computed excessive loss; or
(b) has not underpaid he tax in any manner.
Guided by “Sabka Saath, Sabka Vikas, Sabka Vishwas”, the Finance Minister Smt. Nirmala Sitharaman had introduced a new No Dispute but Trust Scheme – ‘Vivad Se Vishwas’ in the Budget 2020 in the Lok Sabha on 5th February, 2020. Expectations are that the new scheme will work better than erstwhile similar scheme “The Direct Tax Dispute Resolution Scheme, 2016”, given the kind of cases that are in appeal.
To know more:https://itatorders.in/blog/eligible-person-under-vivad-se-vishwas-scheme-2020/
Get consultation under the VSV scheme and calculate your taxes : https://www.itatorders.in/vsvcalculator
The document provides information on appeal procedures under the Indian Income Tax Act. It defines an appeal as an application to a higher court to reverse a lower court's decision. The Commissioner of Income Tax (Appeals) is the appellate authority for appeals against orders from the Assessing Officer. The timeline to file an appeal is 30 days from the date of the order. Appeals can also be made to the Income Tax Appellate Tribunal and higher courts on certain orders.
Section 207 discusses advance tax, which is payable on total income chargeable to tax for the assessment year immediately following the financial year. Advance tax is paid as income is earned throughout the year.
Sections 208-211 provide more details on advance tax payment requirements. Advance tax must be paid in installments if tax liability is over Rs. 10,000. Companies must pay in 4 installments while others pay in 3 installments.
Failure to pay advance tax when required makes the taxpayer an "assessee in default" subject to interest under sections 234B, 234C and penalty under section 140A.
This document summarizes key changes to penalty provisions under the Indian Income Tax Act as a result of the Finance Bill 2016. It discusses the replacement of Section 271(1)(c) with new Sections 270A and 270AA which establish fixed rates for penalties for underreporting and misreporting of income. It also outlines penalties under Sections 271AAB, 272A, 273AA, and 271GB for cases involving concealed income detected during searches, failure to comply with tax notices, granting immunity from penalties, and failure to furnish country-by-country reports for multinational enterprises.
Taxmann's Direct Taxes Manual (Set of 3 Volumes) - 2021Taxmann
Taxmann’s Direct Taxes Manual is a compilation of annotated, amended and updated:
• Income-tax Act, 1961
• Income-tax Rules, 1962
• Circulars & Notifications
• Allied Laws
• Law Lexicon
• Gist of Landmark Rulings
The Present Publication is the 51st Edition, comes in a set of 3 volumes, that incorporates all changes made by the following:
• Volume 1 – The Finance Act, 2021 & the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Volume 2 – The Income-tax (Eighth Amendment) Rules, 2021
• Volume 3 – Law stated is amended up to 1st March, 2021
Taxmann’s Direct Taxes Manual incorporates the following noteworthy features:
• [Bestseller Series] Taxmann's series of Bestseller Books for more than Five Decades
• [Zero Error] Follows the six-sigma approach, to achieve the benchmark of 'zero error'
Published in three volumes:
○ Volume 1 incorporates the Income-tax Act, 1961 as amended by the Finance Act, 2021 & Taxation & Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020. It also contains other Allied Acts
○ Volume 2 incorporates the Income-tax Rules as amended by the Income-tax (Eighth Amendment) Rules, 2021. It also incorporates New Return Forms & Revised Rules and Forms along-with New Rules relating to Charitable Trusts. It also contains other Allied Rules
○ Volume 3 incorporates the following:
• [Schemes] All schemes relevant under the Income-tax Act, 1961
• [Words & Phrases] as defined by various Courts and Tribunals
• [Circulars, Clarifications & Notifications | 1961 – February 2021] Gist of all Circulars and Notifications which are in force
• [Case Laws | 1922 – February 2021] Digest of all landmark rulings by the Apex Court, High Courts & Tribunals
• [Models & Drafts] Specimen, models, and drafts of deeds, letters such as indemnity bond, reply to notices, etc.
Taxmann’s Income Tax Act covers the annotated text of the Income-tax Act, 1961, in the most authentic, amended & updated format.
The Present Publication is the 66th Edition & Updated till the following:
• The Finance Act, 2021
• The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
The noteworthy features of the book are as follows:
• [Bestseller Series] Taxmann’s Bestseller Book for more than Five-Decades
•[Zero Error] Follows the Six Sigma Approach to achieve the Benchmark of ‘Zero Error’
• [Legislative History of Amendments], since 1961
• [Relevant provisions of all other allied laws] referred to in the Income-tax Act
• Comprehensive Table of Contents
• [Quick Navigation] Relevant Section Numbers are printed in Folios for Quick Navigation
• Annotation under each section shows:
○ Relevant Rules & Forms
○ Relevant Circulars & Notifications
○ Date of enforcement of provisions
○ Allied Laws referred to in the Section
• The contents of the book are as follows:
○ Division One – Income-tax Act, 1961
• Arrangement of Sections
• Text of the Income-tax Act, 1961 as amended by the Finance Act, 2021 and Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Appendix: Text of provisions of Allied Acts/Circulars/Regulations referred to in Income-tax Act
• Subject Index
○ Division Two – Finance Act, 2021 & Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Text of the Finance Act, 2021
• Text of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Notifications issued under Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Also available in Taxmann’s Virtual Book Format (An e-Book Initiative for un-interrupted reading experience).
• Now Claim 10% Cashback (when you purchase Taxmann’s Income Tax Act), Redeemable at Taxmann’s Online Bookstore.
This document summarizes the different types of income tax assessments in India:
1) Self-assessment where taxpayers determine their own tax liability before filing their return.
2) Summary assessment where the tax authority can make minor adjustments to a return without an order.
3) Scrutiny assessment where the authority scrutinizes returns and may request documents from taxpayers.
4) Best judgement assessment done without taxpayer participation where they failed to file or comply with notices.
5) Reassessment allows reopening past assessments if escapement of income is found within 4-6 years.
Income tax appeals and Revision by abhishek muraliAbhishek Murali
Art of Preparation and Presentation of Income Tax Appeals by CA Abhishek Murali, Direct Tax Committee Chairman of Southern India of the ICAI. Presented with Hon'ble Pr.CCIT of Tamil Nadu and Puducherry, Mr.Sushil Khumar, IRS.
Comprehensive preparation and process of Appeals
The document contains three requests for adjournment or additional time related to tax assessment cases for RRB Consultants & Engineers Pvt. Ltd. for various assessment years. In the first request, the authorized signatory asks that a case scheduled for August 19, 2005 be adjourned to the first week of September due to the dealer being in the process of collecting forms from customers. In the second request, dated July 20, 2006, the authorized signatory asks that an appeal case scheduled for July 25, 2006 be adjourned as the company's counsel will be out of station. In the third and final request dated September 4, 2008, the authorized signatory asks that an assessment case be adjourned for
Case laws update - V. K. Subramani - Article published in Business Advisor, dated September 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
STAY of collection of tax..........................................pptxssuser510f6e
The document discusses provisions related to staying tax demands when an appeal has been filed. It provides details on:
1) Taxpayers can apply to the Assessing Officer to stay a tax demand under section 220(6) while their appeal is pending, to avoid being treated as defaulting.
2) The application must demonstrate prima facie merits of the appeal and financial hardship of paying the disputed demand.
3) The Assessing Officer must consider the application judicially and not reject it arbitrarily, providing reasons for any dismissal.
4) The demand is stayed until the application is disposed of, and penalties cannot be imposed during this time as the taxpayer is not considered defaulting.
Workshop on Understanding the Amended law of Service Tax dated 29.08.2014 Ses...Agarwal sanjiv & Co
This document summarizes the key aspects of the adjudication process for service tax demands in India. It covers topics such as:
- Triggers for issuing a show cause notice (SCN) by the department
- Contents and timing of SCNs
- Handling and responding to SCNs
- The adjudication process and principles of natural justice
- Issuance and characteristics of the adjudication/demand order
- Consequences and options after the adjudication order
It provides details on the demand confirmation process, recovery proceedings, relevant dates, monetary limits of officers for adjudication, and principles like speaking orders and de novo adjudication. Overall, the document offers a comprehensive overview of the
Workshop on Understanding the Amended law of Service Tax dated 03.09.2014 Ses...Agarwal sanjiv & Co
This document summarizes the key aspects of the adjudication process for service tax demands in India. It discusses the triggers for issuance of a show cause notice, the contents and timing of show cause notices, the handling and adjudication of show cause notices, and the consequences after an adjudication order is issued. The presentation covers the demand determination process, principles of natural justice that must be followed, requirements for a valid adjudication order, and jurisdictional limits for different tax officers to adjudicate cases involving certain demand amounts.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernisation of existing business. In this webinar, we shall understand and analyse the provisions related to Refund under the GST law.
This document provides an overview of installment agreements, which allow taxpayers unable to fully pay their tax bills to pay over time. It discusses what an installment agreement is, the application process, and factors the IRS considers in approving agreements. The IRS may automatically approve agreements for under $10,000 or streamlined agreements up to $50,000. For larger amounts, taxpayers must submit financial information for the IRS to determine their ability to pay based on assets and disposable income. Installment agreements aim to allow taxpayers to pay what they can reasonably afford over time without jeopardizing their livelihoods or earnings.
Gratuity is a statutory benefit paid to the employees who have rendered continuous service for at least five years. It is a lump sum amount paid to an employee based on the duration of his total service. The benefit gratuity is payable to an employee on cessation of employment (either by resignation, death, retirement or termination, etc) by taking the last drawn salary as the basis for the calculation. Gratuity is an important form of social security and is in the form of a gratitude provided by the employer to the employees in monetary terms for the services rendered by them to the organization. It is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job. Gratuity payment liability of the employer tends to increase with an increase in the salary and tenure of employment. more info visit https://motiveap.blogspot.com/2019/08/gratuity-rules-applicability-payment.html
From 1 October 2017 creditors will be expected to have followed the Pre-Action Protocol (PAP) for debt claims before proceeding with litigation. Robert Sorrentino of ACS looks at the scope of the protocol and what it means for a creditor wanting to recover a debt through the legal process. Robert provides advice for remaining compliant with the protocol and achieving a successful recovery of the debt.
As GST settle in are a day to day life, and taxpayers get ready to upload all there returns. That is soon to be followed by the Assessment and appeal proceedings. A presentation of all you need to know about the dispute resolutions-appeals and revisions, demand and recovery. Also, in particular slides added the funny side of the provisions(red).
Unit 2 - Refund of Tax.pptx, tax law notesssuser32bd0c
1) Refunds arise when the amount of tax paid by a person is greater than the amount they are properly chargeable for that year, such as when tax deducted at source is higher than taxes owed, advance tax paid exceeds taxes owed, or taxes paid are reduced on appeal or revision.
2) Claims for refund must be made within one year of the last day of the assessment year using Form 30, along with supporting documents.
3) Interest is payable on refunds at 0.5% per month, calculated from different periods depending on the source of excess payment.
4) The Assessing Officer can adjust refunds against outstanding tax dues of previous years, but must issue
The Bankruptcy and Debt Advice (Scotland) Bill 2013Alan McIntosh
An Overview of the Bankruptcy and Debt Advice (Scotland) Bill 2013 (BADAS Bill). Delivered at the Legal Service Agency Glasgow on the 20th of March 2013.
The document discusses various aspects of the income tax assessment procedure in India. It defines assessment and explains the process of filing a return of income. It outlines who needs to file a return based on their total income. It also describes the different due dates for filing returns. The document then explains the consequences of defaulting or delaying the filing of a return. It discusses various types of assessments like self-assessment, inquiry assessment, summary assessment, and scrutiny assessment. It provides details on each type of assessment and the procedures involved.
The document introduces a new Small Claims Track (SCT) in the Patents County Court that aims to speed up the court process and make it easier for small and micro businesses to protect their intellectual property rights for claims up to £5,000. It provides guidance on what constitutes a small claim, how to begin the process by completing an application form, what happens after it is submitted, the procedures that take place during a hearing, and the potential outcomes of the court's decision.
The document discusses scrutiny assessments under the Indian Income Tax Act of 1961. Scrutiny assessments are made under section 143(3) where the tax authority believes the return requires further examination to ensure accurate reporting of income and taxes. Only a small percentage of returns are selected for scrutiny based on predetermined criteria like business turnover, profits, loans, and investments. The document outlines the scrutiny process and important considerations for taxpayers undergoing scrutiny, such as cooperating fully, providing requested documents, and being given a fair opportunity to respond to any proposed additions.
This document discusses various issues related to the processing of income tax returns in India. It summarizes problems with TDS credit mismatches, demands raised by assessing officers, manual and online rectification processes, and the transition to the new TRACES system for processing TDS returns. It provides an overview of relief measures announced by the tax authorities and highlights ongoing issues like delays, lack of proper communication and guidance, and technical problems with the new systems. The document aims to identify pain points and suggest improvements to make the return processing system simpler and less burdensome for taxpayers.
The document provides an overview of collection due process (CDP) procedures that taxpayers can use to dispute tax liens and levies issued by the IRS. It discusses how taxpayers can request a CDP hearing after receiving a notice of tax lien or intent to levy. It also outlines the issues that can be raised in a CDP hearing, such as challenges to the collection action or underlying liability. The document notes that taxpayers have the right to judicial review of adverse determinations from CDP hearings. It also discusses penalties for frivolous or dilatory CDP requests.
This document provides an overview of demand and recovery provisions under India's GST (Goods and Services Tax). It discusses notices issued for tax shortfalls with and without fraud, time limits for these notices, voluntary tax payments, penalties, and orders. It also covers modes of tax recovery if amounts remain unpaid after an order, including deduction from refunds, sale of detained goods/property, and recovery from other parties. Special provisions address void property transfers, tax as the first charge on property, and appeals that result in increased demands.
The document discusses various aspects of demand and recovery of tax under the GST regime in India, including:
1) Key legal provisions around determination of tax, interest, and penalties in cases of non-payment, short payment, erroneous refunds or wrong availment of input tax credit.
2) The procedures for issuing show cause notices, admitting representations, and ultimately passing an order determining tax liability.
3) Modes of recovery of outstanding tax dues like deducting from refunds/drawbacks, detention and sale of goods, and recovery as arrears of land revenue.
4) Timelines and forms prescribed for different steps in the demand and recovery process.
The document discusses various aspects of tax recovery and refund in India. It covers recovery of tax from other parties holding money for the taxpayer, detention of taxpayer property, waiver of interest charges, penalties for tax defaults, modes of tax recovery including certificates to tax recovery officers and attachment of property or salary. It also discusses tax clearance certificates, procedures for claiming refunds within one year, automatic refunds from appeal or revision orders, potential withholding of refunds if it affects revenue, and interest payments on refunds or excess refund amounts.
This document provides details on preparing profit and loss accounts and balance sheets. It begins by defining key accounting concepts like revenue, expenses, net profit, and the difference between cash basis and accrual basis accounting. It then explains the purpose and preparation of key financial statements like the trading account, profit and loss account, and balance sheet. The trading account is used to calculate gross profit/loss, while the profit and loss account calculates net profit/loss. The balance sheet presents the financial position of a business on a given date by listing assets, liabilities, and capital. Accruals and deferrals are also discussed.
This document provides details on preparing profit and loss accounts and balance sheets. It begins by defining key accounting concepts like revenue, expenses, net profit, and the difference between cash basis and accrual basis accounting. It then explains the purpose and preparation of key financial statements like the trading account, profit and loss account, and balance sheet. The trading account is used to calculate gross profit/loss, while the profit and loss account calculates net profit/loss. The balance sheet presents the financial position of a business on a given date by listing assets, liabilities, and capital. Manufacturing accounts are also discussed for businesses that manufacture goods.
The document summarizes the tax treatment of income from salary in India. It defines salary and outlines what components are included as salary income. It states that salary income is taxable on a due or receipt basis, whichever is earlier. It provides details on the taxability of various salary allowances and perquisites. Key allowances like house rent allowance and travel allowance are partly exempt from tax up to certain limits. Most other allowances are fully taxable.
The document discusses income from house properties under the Indian Income Tax Act. It defines income from house properties as taxable if the property consists of a building or land, the taxpayer owns the property, and it is not used for business purposes. It provides details on computing income by determining gross annual value, deducting expenses like taxes and interest payments, and outlines special provisions for self-occupied properties and rental properties. The document also discusses topics like deemed ownership, treatment of vacant properties, co-owned properties, and the tax treatment of unrealized rent.
This document outlines the income tax rates in India from 1992-1993 to 2013-2014. It provides the tax rates for different income slabs for individuals, HUFs, AOPs and BOIs over these years. The tax rates varied from 0% to 50% depending on the income slab and year. Surcharge and education cess were also introduced in some years applicable above certain income thresholds.
1. Salary is remuneration received periodically for services rendered as a result of an employment contract. TDS or tax deducted at source is income tax deducted from salary payments.
2. To calculate TDS, the total gross salary is determined, exemptions are subtracted to get the taxable salary, and annual taxable income is projected. Deductions are then subtracted to get the total taxable income.
3. Based on the tax slabs, the annual tax liability is calculated. The monthly TDS amount is the annual tax divided by 12 months.
The document summarizes key aspects of the Wealth Tax Act of 1957 in India. It outlines that wealth tax is charged on the net wealth of individuals, HUFs, and companies above a certain threshold. It defines what constitutes an asset and exceptions. Some key assets include residential and commercial properties, motor vehicles, cash in hand, and jewelry. It also discusses deemed assets, asset valuation methods, tax rates, and filing of wealth tax returns.
This document summarizes key aspects of the Wealth Tax Act of 1957 in India, including:
- Who is required to file wealth tax returns and by what deadline.
- The types of assets that are included in calculating net wealth and subject to the 1% wealth tax, such as residential/commercial property, jewelry, vehicles, and cash over a certain amount.
- Exceptions and exemptions to assets included in net wealth, such as one residential property or assets held in trust.
- How different types of assets are valued for wealth tax purposes, such as through capitalizing rental income for property or independent appraisals for jewelry.
The document outlines various time limits for income tax assessments and related procedures in India. It discusses that intimal notices under section 143(1) must be sent within one year of the end of the financial year in which the return was filed. Regular assessments under section 143 must be completed within two years of the end of the relevant assessment year. If a case is referred to a transfer pricing officer, the time limit is extended by 12 months. Notice for reassessment under section 147 must generally be issued within four years, but can be issued within six years in some cases.
This document provides an overview of tax deducted at source (TDS) in India. It defines TDS and explains that it is a mechanism for collecting income tax by deducting taxes from payments made to recipients. It outlines who is required to deduct TDS, their responsibilities, applicable tax rates and payments that attract TDS. It also summarizes provisions related to tax collected at source (TCS), due dates for depositing TDS/TCS, filing returns and issuing TDS certificates.
This document discusses common TDS violations found during surveys conducted by the Income Tax Department. It outlines several types of common violations:
1) Non-deposition of taxes deducted, which is often seen in struggling businesses.
2) Failure to apply the normal deduction rates, as seen in an insurance business.
3) Failure to make any TDS deductions for a TPA (third party administrator) business.
4) Not treating non-refundable rent advances as attracting TDS under section 194I.
5) Misclassifying professional fees paid to guest lecturers as salary.
The document provides guidance on purpose, selection, operation, and procedures for conducting TDS surveys
This document discusses the service of notices under the Income Tax Act of 1961. It outlines how notices may be served either by post or as if they were a summons issued by a court. For post, service is deemed effective if addressed, prepaid and registered. It discusses who a notice can be served to depending on the recipient's status (individual, HUF, firm, company etc). It also interprets common postal remarks and outlines general principles of service, noting that mere knowledge is insufficient and the burden of proof is on the issuing authority. Finally, it discusses how the Code of Civil Procedure of 1908 has influenced certain sections and rules of the Income Tax Act regarding service of notices.
1) The document discusses the service of notices under the Income Tax Act of 1961 and how it draws from the Code of Civil Procedure of 1908.
2) It outlines the key provisions for serving a notice such as serving by post, rules for personal service, substituted service, and who notices should be addressed to depending on the type of recipient like an individual, HUF, firm, or company.
3) The Code of Civil Procedure of 1908 is the basis for rules regarding service of notices under the Income Tax Act of 1961, especially Order V relating to summons.
This document outlines income tax offences and provisions for penalties and prosecution in India. It lists various offences related to defaulting on tax payments, failing to comply with notices, concealment of income, failure to maintain proper books and records, and failure to deduct taxes. It provides the corresponding section of the Indian Income Tax Act for each offence. The document also discusses provisions related to prosecution for contravention of orders, failure to provide access to books and records during inspections, failure to pay taxes deducted, willful tax evasion, failure to provide accounts and documents, making false statements, falsifying records to evade tax, abetting false returns, and repeat offenses.
This document summarizes the various types of leave available to government servants (GS) in India. It discusses leaves that are debited to the leave account like earned leave, half-pay leave, and commuted leave as well as leaves not debited like study leave and maternity leave. It provides details on the eligibility and limits for each type of leave. Key points include that earned leave is credited at 15 days every 6 months up to a maximum of 300 days, half-pay leave is credited at 10 days every 6 months, and commuted leave can be taken instead of half-pay leave with a medical certificate. Maternity leave is allowed for up to 180 days and child care leave can be taken for up to two
The document outlines the various leave rules for government servants under the CCS (Leave) Rules, 1972. It discusses leaves that are debited to the leave account like earned leave, half-pay leave, and commuted leave as well as leaves not debited like study leave, maternity leave, and child care leave. It provides details on the eligibility and extent of various leaves. Key highlights include earned leave accrual of 15 days twice a year, maternity leave of up to 180 days, and extra ordinary leave available up to 18 months for treatment or 24 months for studies.
The document discusses various sections under which interest is payable by or to the assessee. It summarizes the key details around sections like 234A, 234B, 234C and 234D which deal with interest for defaults in filing return, payment of advance tax, deferment of advance tax and excess refunds respectively. It provides details like applicable rates of interest, period of applicability and amount on which interest is calculated for different cases under these sections. The document also briefly discusses sections like 244A and 132B(4) pertaining to interest on delayed refunds and seized/requisitioned assets.
This document discusses interest payable by and to taxpayers in various situations under the Indian Income Tax Act. It covers interest charged for late filing of returns, late payment or underpayment of advance tax, excess refunds granted, and interest paid on amounts seized during a search that are eventually refunded. The key points covered include calculation methods for different types of interest, applicable rates, and time periods over which interest applies. Case laws are also referenced related to issues like what date should be used to determine interest and whether interest can be charged without being specified in the assessment order.
The document summarizes key aspects of the Indian Evidence Act of 1872 such as its extent, interpretation of terms like "fact", "document", and "evidence". It also covers rules around oral evidence, documentary evidence, public documents, presumptions related to documents, burden of proof, estoppel, examination of witnesses, and production of documents. The Act establishes rules for evidence admissibility in courts of India, except the state of Jammu and Kashmir. It defines important terms and sets guidelines around primary and secondary evidence, oral and documentary evidence, certified copies, burden of proof, and witness examination.
The document provides an overview of the Indian Evidence Act of 1872. Some key points:
- It extends to all of India except Jammu and Kashmir. It applies to all judicial proceedings in any court, including court-martial, but not to affidavits or arbitrator proceedings.
- Proceedings before the Income Tax Authority are deemed judicial proceedings. Every income tax authority is deemed a civil court for some purposes.
- It defines terms like court, fact, evidence, and document. A court includes all judges and magistrates legally authorized to take evidence. Evidence includes oral statements and documents.
- Oral evidence must be from an eyewitness or earwitness. Documentary evidence can be primary like
Acolyte Episodes review (TV series) The Acolyte. Learn about the influence of the program on the Star Wars world, as well as new characters and story twists.
An astonishing, first-of-its-kind, report by the NYT assessing damage in Ukraine. Even if the war ends tomorrow, in many places there will be nothing to go back to.
Essential Tools for Modern PR Business .pptxPragencyuk
Discover the essential tools and strategies for modern PR business success. Learn how to craft compelling news releases, leverage press release sites and news wires, stay updated with PR news, and integrate effective PR practices to enhance your brand's visibility and credibility. Elevate your PR efforts with our comprehensive guide.
Here is Gabe Whitley's response to my defamation lawsuit for him calling me a rapist and perjurer in court documents.
You have to read it to believe it, but after you read it, you won't believe it. And I included eight examples of defamatory statements/
El Puerto de Algeciras continúa un año más como el más eficiente del continente europeo y vuelve a situarse en el “top ten” mundial, según el informe The Container Port Performance Index 2023 (CPPI), elaborado por el Banco Mundial y la consultora S&P Global.
El informe CPPI utiliza dos enfoques metodológicos diferentes para calcular la clasificación del índice: uno administrativo o técnico y otro estadístico, basado en análisis factorial (FA). Según los autores, esta dualidad pretende asegurar una clasificación que refleje con precisión el rendimiento real del puerto, a la vez que sea estadísticamente sólida. En esta edición del informe CPPI 2023, se han empleado los mismos enfoques metodológicos y se ha aplicado un método de agregación de clasificaciones para combinar los resultados de ambos enfoques y obtener una clasificación agregada.
1. Recovery of Income tax –
Provisions and Procedures
Presented by
Shankar Bose
Inspector of Income-tax
MSTU, Puri
2. Primary duty of collection of
the demand is with the
Assessing Officer who has
raised the demand
3. Planning
Collect all the details of assets during
the course of assessment
Make provisional attachment u/s
281B with the approval of the CIT, if
required
Serve the demand notice as early as
possible
4. Precaution
o Study from records whether
allowing full 30 days will be
detrimental to the revenue
5. Proviso to Sec. 220(1)
Record the reason to believe.
Obtain approval from Addl. CIT
Allow reduced period for payment of
the demand
Take recovery measures as early as
possible
6. R
E
S
P
O
N
S
E
S
Assessee has paid the demand
within due date
Assessee has filed an application
within due date for extension of
time/installment
Assessee has filed an appeal and
has applied for stay of the demand
Neither has paid the demand
nor prayed for stay
8. Conditions u/s 220(3)
Application must be made within the due
date
Reasonable opportunity is to be given
Each case should be judged on merit
Security/bank guaranty may be obtained
in suitable cases
Do not allow much time to pay and in no
case, more than 18 installments be
granted
9. Order u/s 220(3)
Make a speaking Order mentioning
time allowed and terms of payment
Mention the amount to be paid and
the date of payment
Review the position after a certain
intervals
Maintain the installment register
10. Non- compliance
Has not paid within
the extended time
Commits default in
payment of any of the
installments within fixed
time
Treat the assessee as deemed
to be in default and take measures
to collect the demand
12. Stay petition- Sec. 220(6)
Where the assessee has presented an
appeal u/s 246
The AO has the discretion to grant
time
He may impose conditions as he
thinks fit
He may treat the assessee not being
in default
13. Instruction No.96 dated21.08.69
Where the income determined on
assessment was substantially higher
than the returned income, say, twice
the latter amount or more , the
collection of the tax should be held
in abeyance till the decisions in
appeal.
14. Instruction No-1914
Stay petitions have to be dealt with
in accordance with the guidelines
stipulated in Instruction No-1914
dated 02.12.1993 and it supersedes
earlier instructions
15. Merit of the case
Points of dispute relate to facts or are a
consequences of different interpretation of
law.
The additions have been made as a result
of detailed investigation.
They are based on materials gathered
through enquiry/survey/search & seizure
operation
16. Important points
Mere filing of appeal is not a criteria for
granting stay.
Opportunity must be given before
rejecting the petition .
Stay petitions shall always be dealt with
utmost care
17. Issues to be considered
Points of dispute have been decided in favour
of the assessee in an earlier order by the
CIT/ITAT/High Court
The disputed point arises because the AO
has taken an interpretation of law in respect of
which there exist conflicting decisions
18. Conditions
Stay only the demands attributable to
disputed points
Require the assessee to offer suitable
security
Require the assessee to pay a
reasonable amount in lump sum or in
installment
19. Further Conditions
Reserve a right to review the order passed
after a reasonable time to consider the
development during the period.
Require an undertaking from the assessee
that he will cooperate in early disposal of
appeal
Mention that if any refund becomes payable
by the Depptt. will be adjusted against the
demand stayed
20. Other measures
When the demand is more than 1
lakh the AO will intimate the details
pending appeal, the quantum demand
stayed and conditions imposed to the
JCIT.
The JCIT will request the CIT to write
to the concerned CIT(A) for early
disposal of appeal
21. Authorities who can stay
Stay should normally be entertained by the
AO/JCIT
CIT can interfere when the assessment is
unreasonably high or there will be genuine
hardship of the assessee
22. Power of CIT(A)
The CIT(A) is also vested with the powers
of granting stay order, which is not only
necessary but also expedient for effective
adjudication of appeal.
Prem Prakash Tripathi vs CIT [1994]
208 ITR 461 (All)
23. Demand should be stayed when It is
unreasonably high
Allahabad agricultural
Institute (2007)
Vs
UOI
291 ITR 116(All)
MGM Transport (Madras)
(P) Ltd.(2007)
Vs
ITO
207 CTR (Mad) 90
24. A demand of Rs 66 lakh was raised u/s158BC.
The assessee has Rs 24 lakh in the bank
account. On a stay petition, the AO asked to
pay Rs 5 lakh initially and pay the balance in 10
fortnightly installments.
The High court treated the order as harsh
It directed to make an initial payment of Rs 15
lakh and to obtain a security for the balance
payment
27. Penalty u/s 221
When the assessee is in default or
deemed to be in default
Issue show cause letter giving an
opportunity
May not be imposed when there is
good or sufficient reason
Quantum of penalty is discretionary
but it should not be more than tax
arrear
28. • Imposition of penalty is not a
recovery measure, it is merely a
punishment for the default of the
taxpayer
• Default must be willful and not
merely accidental
29. Penalty order
Penalty cannot be imposed for non-
payment of interest
Penalty can not be imposed for non
payment of penalty.
The order imposing the penalty should be
speaking and clearly specify the amount of
penalty payable
30. Example
• Assessee became in default on 31.3.2009
• Penalty notice u/s 221 was issued on
15.05.2009
• Demand paid on 20.05.2009 i,e, before
the date of hearing
Can the penalty be imposed in this
case?
31. Attachment of salary-Section
226(2)
• AO can require the employer to remit
a portion of salary towards the arrears
of tax due
• Portion exempt u/s 60 of CPC can not
be attached.
33. Example
• The assessee is due to receive an
honorarium of Rs 50,000/ from All India
Radio
Is it attachable u/s 226(2)?
34. Attachment u/s 226(3)
When money is due or may become due
to the assessee
Any person holds or may subsequently
hold on account of the assessee
AO will issue the notice to pay the money
to him forthwith or within the time specified
in the notice.
35. Scope of attachment
Debtors
Bank Accounts
Rent receivable
Retention money of a contractor
Security money/Deposit
Compensation receivable
36. Attachment of Fixed Deposits
Vysya bank/ Global Trust Ltd vs Joint
CIT [2000] 241ITR 178 (Kar)
AND
Administrator, Unit trust of India vs
B.M.Malani[2007] 164 Taxman 463
(SC)
37. CAUTION
This power must be exercised with
utmost care and circumspection
Not to exercise this power hastily,
indiscriminately and capriciously
The AO must be in possession of prima
facie information
Jagannath Bawri vs CIT [1998] 234
ITR464( Gauhati)
38. Service of notice
• A copy of the notice to be served to the
assessee to his last address
• In case of joint holders, notice is to be
served to all the joint holders to their last
known addresses
39. Compliance of the person
o To whom a notice is issued is bound to
comply with the notice
o When a notice is issued to a post office,
banking company or insurer , it is not
necessary to produce the pass book,
deposit receipt , policy or any document
o When a person objects , a statement on
oath is to be recorded
40. Personal liability
A false statement is given on oath
Discharges any liability to the
assessee after receipt of the notice
41. Deemed to be in default
• When the person fails to pay even
after the notice shall be treated as
deemed to be in default
• Proceedings may be taken against
him in the manner provided in section
222 to 225
42. A question
• Can the salary of the third party debtor be
attached for non-compliance?
43. Example
• The AO attached the bank account of the
assessee showing the demand as Rs 5
lakh but it was found subsequently that the
demand is actually Rs 6.5 lakh.
Will the notice be void?
44. Money in custody of court-226(4)
• Money belonging to the assesse is in
custody of any court
• The AO shall apply to the court for
payment of the money sufficient to
discharge the tax
45. Attachment
• At the time of attachment the money must
be at custody of the court
• Where the court has already passed a
rateable distribution order , the money
cannot be attached
46. Priorities
Govt. dues get priority over unsecured
creditors
As for the Govt. dues not secured by
any charges, the first Depptt attaches
the property will get precedence over
others.
47. Distraint and sale
The AO may recover the arrears of tax
due by distraint and sale of movable
property of the assessee
The AO should be authorized by the CIT
It should be done as per procedure laid
down in Third schedule
48. Procedure
• First verify, whether any rectification
petition, stay petition or appeal effect is
pending.
• A notice must be given indicating the
amount due
• Issue the distraint warrant in the name of
Inspector
• The Inspector will make a discreet enquiry
about the time the assessee will available
in the premises
49. Execution of the warrant
• The inspector will enter the premises
along with team members
• He will serve the warrant on the assessee
to make the payment forthwith.
• If the assessee makes the payment, he
will issue the cash receipt
• If he does not make payment within
reasonable time he will make attachment
of the movable properties
50. Attachment
attachment means taking possession by
way of actual seizure
He should first seize the cash
Then attach all other movable assets as
per requirement and make inventories.
It should be done in presence of two
witnesses and a panchnama be prepared.
51. Others
Seizure should not be done in
excessive
Seized items should be kept in
safe custody
Arrangement of sale is to be
made as early as possible.
52. Section 281
During pendency of any proceeding, after
Completion but before service of notice u/r 2 of
2nd
schedule
Transfers by way of sale ,mortgage,
Gift, exchange or any other mode
Become void
53. Exception
When transferred for adequate consideration
and without notice of pendency of such
proceeding or demand
With the permission of the AO
54. Applicable
• This section is applicable only when the
demand payable is more than Rs 5000/
and the asset transferred is more than Rs
10000/
57. Recovery survey
The idea of recovery survey was
introduced in the action plan in the
year 1996-97
It is like other survey u/s 133A
58. Plan
When there is no visible asset of the
assessee .
He has a business
This can be done by TRO also
This can be done jointly with the TRO.
59. Cash
• Make an inventory
• Request the assessee to deposit in the
bank account and attach the bank account
• If there is huge amount of cash may be
converted to search an seizure
• If it is a certificated case, the TRO may
authorize his inspector to attach and
seize
60. Bank account
There may be bank accounts in the
name of assessee or his benamidars
Make an inventory
Attach the bank accounts, if possible
61. FD/NSC
Make inventory of FD/NSC found
Verify whether shown in the return
Attach wherever possible
62. DOCUMENTS
Examine the documents to find out
any information regarding any asset
Take extract or impound
63. Immovable property
• Examine the purchase deeds or
agreements found during the survey, if any
• Whether these are in the names of any
benamidar
64. Legal representative
• When a person dies, his legal
representative is liable to pay any sum
which the deceased would have been
liable to pay.
• Legal representative can not transfer any
asset when the liability is undischarged.
65. Who is a legal representative
• Besides administrator, executors and
heirs-in-law, a stranger taking possession
of deceased’s estate is liable to be
proceeded against as legal representative.
An agent holding power of attorney from
an executor of the deceased is a legal
representative.
James Anderson vs CIT (1960) 39 ITR
(sc)
66. How to proceed
• In the case of death of assessee after
service of demand notice, make an
investigation to find out the legal
representative. Keep them on record.
• Issue fresh demand notices to each of the
legal representatives.
67. liability
• The legal representative is liable only to
the extent of estate or property of the
deceased which has come to his hands
and not been duly disposed of.
68. Firm -188A
• Every person who was the partner during
the previous year shall be jointly and
severally liable along with the Firm for the
amount of the tax.
• Legal representative of such partner who
is deceased shall also be liable.
69. Dissolved Firm-189(3)
In the case of discontinuance or
dissolution of the Firm, the partners of the
firm of the relevant period or legal
representative in respect of the partner
who is deceased will be liable
70. An example
• A Firm which had two partners, had a
demand of Rs 5.5 lakh for the AY 2004-05.
The business of the firm was taken over by
one of the partners on 01.04.2004 and
made it a proprietorship concern.
Who will be liable to pay the demand?
71. Company in liquidation
• Every liquidator within 30 days of
becoming liquidator give a notice of his
appointment to the concerned AO
• The AO will notify to the liquidator within
three months of the receipt of information
the amount which will be payable by the
company
72. Duty of the liquidator
• Shall not part with any asset without the
permission of the CIT/CCIT before
notification by the AO
• Set apart an amount equal to the amount
notified by the AO.
73. PERSONAL LIABILITY
• If the liquidator fails give notice to the AO
• Fails to set apart the amount notified by
the AO
• Parts with any asset of the company in his
hand in contravention of provisions
He will be personally liable.
74. Priority
Priority of Govt dues over unsecured creditors
has been accepted by Hon’ble Supreme Court
Builders Supply Corporation vs UOI 56 ITR
91
78. Private Company-Sec 179
• The private company the demand of which can
not be recovered .
• Every person who were directors during the
relevant year will be jointly and severally liable to
pay the tax
• No action can be taken against the director if he
can prove that non-recovery can not be
attributed to any gross neglect, misfeasance,
breach of provision on his part.
79. Procedure
Be sure that no
recovery can be
made from the
company
Make investigation
to make the directors
liable
80. Order u/s 179
First part of the order will contain the details
of the actions taken to recover the demand
from the company.
Second part will contain what investigation/
enquiries have been made to make the
director liable jointly and severally
Third part will be the decision.
81. Receiver
• Property in the hand of the receiver can
not be attached without the permission
from the court which has appointed the
receiver.
82. Declared insolvent-1
Assessee received income and filed return
Declared insolvent before filing
AO assessed and raised demand
Insolvent is liable to tax
83. Declared insolvent-2
Assessment made in his name
Adjudicated insolvent after assessment but
Before collection of demand
AO can claim it as a debt against the estate of
the assessee from official assignee
85. BIFR
An Industrial undertaking which
has filed reference in BIFR under
the provisions of SICA 1985 for its
revival, IT demand against such
company can not be recovered.
86. Exception- for recovery
Showing that despite the claim of
sickness the company has resources
to meet the dues
Revealing through evidences that this
is a case of diversion of fund/asset
stripping by the directors
All petitions before BIFR are to be
made through DGIT (Admn) who is
the nodal agency
87. DRAWING UP CERTIFICATE
The procedure of drawing up
certificate has been modified w,e,f,
01.04.1989
U/S 222, the TRO will draw up
certificate when the assessee is in
default or deemed to be in default in
making the payment of tax
88. Guideline
New guideline regarding drawing
up certificate has been has been
given in CBDT letter in
FNo.396/3/90-ITCC dated
13.02.1990
89. Procedure
The AO will first exhaust the actions
u/s 221 and 226
He will obtain an approval from the
JCIT to that effect.
He will prepare a statement of assets
and fill up the relevant columns of
Form No 57
Send these to the TRO for drawing
up certificate
90. Quarterly review
The AO will make quarterly review of
the cases to be referred to the TRO
The TRO and the AO will meet after a
certain interval to review the position of
certificated cases
JCIT will monitor the cases
91. Time limit
There is no time limit of drawing up
certificate as section 230 has been
omitted w.e.f. 01.04.1989