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% :: TDS :: VAT Audit :: due date for vat payment :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: cpt :: form 3cd :: ACCOUNTING STANDARD
 
 
Direct Tax »
 Central Board of Direct Taxes asks taxman to make all out efforts to recover arrears
 CBDT to honour honest taxpayers
 Startups in the docks over marked down valuation tax as March 31 nears
 CBDT asks taxman to make all out efforts to recover arrears
 CBDT chief prods taxmen to buck up, meet recovery target
 CBDT to hold review meeting on PMGKY, tax collection on Mar 17
 Monitor tax collection to meet target by Mar 31: CBDT to taxman
 File prosecution cases against shell companies: CBDT to taxmen
 Threefold jump in prosecution against tax offenders
 Income Tax department raises queries on suspicious bank account deposits post demonetisation
 Govt’s direct tax collections likely to miss budget targets for FY17

Don't harass taxpayers on pretext of scrutiny: CBDT to I-T
September, 30th 2014

Taking a stern view of the undue "harassment" of taxpayers during scrutiny of their cases, the CBDT has issued orders asking the I-T department to complete these enquiries in quick time and not drag them "unnecessarily".

Compulsory scrutiny cases have been a matter of grievance for many taxpayers due to fears of harassment by I-T officials as one has to undertake many visits and submit numerous documents in order to prove that he or she has not escaped the tax due on income.

The I-T department, according to officials, picks up only 2 per cent of the total tax returns cases for scrutiny in an assessment year and these too are selected by a computerised system in order to totally rule out any scope for human intervention.

The Central Board of Direct Taxes (CBDT), the apex policy making body of the Income Tax department, has now mandated that, henceforth, the ambit of these enquiries should be limited to the verification of specific questions.

The board said it is issuing these directions following an analysis of taxpayers' grievances in this regard, which were found to be true.

"Feedback and analysis of such orders indicates that, many times, the core issues which formed the basis of selection of the case for scrutiny were not examined properly. This (scrutiny process) has been causing undue harassment to the taxpayers and has also drawn criticism from several quarters.

"Therefore, in such (computer-based scrutiny) cases, an Assessing Officer (AO) shall confine the questionnaire and subsequent enquiry or verification only to the specific point(s) on the basis of which the particular return has been selected for scrutiny," the CBDT said.

The board made it clear while issuing the new directive (on Sept. 26) for AY 2014-15 that it has "suppressed" all orders circulated earlier in this regard.

The CBDT order said that, "in such cases, all efforts would be made to ensure that assessment proceedings are completed expeditiously in the minimum possible number of hearings without unnecessarily dragging the case till the time-barring date".

It also said that beginning Oct. 15, an I-T notice sent by the AO to the taxpayer for scrutiny will have further details as to the reason why his or her case has been called for examination.

The CBDT ordered that in specific cases where scrutiny has been launched, if it is found that there are chances of escapement of income exceeding Rs 10 lakh (metro cities) or Rs 5 lakh (non-metro cities), the case will be further probed by the AO only after the "written approval" of the Principal Commissioner or Director of I-T.

The CBDT, under this mechanism, too, has kept in mind the need to spare taxpayers any harassment.

"However, such approval shall be accorded by the Principal CIT/DIT in writing after being satisfied about merits of the issue necessitating wider and detailed scrutiny in the case. Cases so taken up for detailed scrutiny shall be monitored by the Joint CIT/Addl CIT concerned," the order specified.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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