Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: cpt :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: Central Excise rule to resale the machines to a new company :: VAT RATES :: form 3cd
 
 
News Headlines »
 Filing of online return for 4th quarter of 2016-17 — extension of period thereof
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned

Tighter I-T scrutiny norms for professionals on cards
June, 30th 2006
 

Income-tax returns of professionals will come under compulsory scrutiny by tax authorities this fiscal if they earn Rs 10 lakh or more annually but declare an income of less than Rs 2 lakh.

The Central Board of Direct Taxes (CBDT) has tightened the scrutiny norms for professionals including film professionals, lawyers, doctors, chartered accountants and architects to track small assessees shortpaying or evading taxes. So is the case for salaried assesses, claiming refunds above a certain threshold, and contractors.

It is status quo, though, for stockbrokers the norms have neither been tightened nor eased. Overall, close to 5.4 lakh tax filers in the country will find their income-tax returns scrutinised this fiscal, with the CBDT setting an overall cap of 2% on the number of cases to be selected for scrutiny.

Professionals are non corporate assessees while stock-brokers and contractors can either be non-corporate assesses or corporate assesses. During 2006-07, assessing officers have been directed to scrutinise returns of all professionals whose gross receipts exceed Rs 10 lakh but income declared is less than 20% of the amount. The cutoff limit was higher at Rs 50 lakh in 2005-06. There are 25,000-30,000 professionals filing income-tax returns in Mumbai.

Scrutiny is the process of selecting some income-tax returns and examining them closely by calling for extra information and seeing if the details furnished are correct. I-T returns of stockbrokers (including sub-brokers) who receive brokerage income of Rs 1 crore or more but declare less than 10% of the amount will be taken up for scrutiny. All cases of brokers (including sub-brokers) with a claim of bad debts of Rs 10 lakh or more will also be under compulsory scrutiny. The limits were the same in 2005-06 as well.

If the broker (or the sub-broker) is a non-corporate assessee receiving a brokerage of Rs 50 lakh or more but declaring an income of less than 10% of the amount, his returns will be picked up by tax authorities. Similar is the case with stockbrokers (including sub-brokers) with a claim of bad debts of Rs 5 lakh or more.

Besides brokers, all banks and public sector undertakings, NSE 500 and BSE A group companies listed on the exchange as on March 31, 2006, non-banking companies and investment companies with a paid-up capital of Rs 10 crore or more are in the compulsory scrutiny basket. Cases will be selected through the computer-assisted scrutiny system (CASS) in 60 cities on the computer network, and manually in others.The selection criteria will be the same for both, according to a top government official.

With tax evasion reckoned to be rampant among contractors, the CBDT has decided to bring all cases where gross receipts exceed Rs 2 crore but net income declared is less than 5% of the amount under scrutiny (for corporate assesses). The limit was higher at Rs 5 crore in 2005-06. For non-corporate assessees, IT authorities will pick up all cases where gross receipts exceed Rs 1 crore, but net income declared is less than 5% of the amount.

Here again, the cut off limit was higher at Rs 2 crore in 2005-06. A larger number of I-T returns of contractors just as professionals will be scrutinised. This will be within the overall cap.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions