i tax mar 2012 colour
TRANSCRIPT
8/2/2019 i Tax Mar 2012 Colour
http://slidepdf.com/reader/full/i-tax-mar-2012-colour 1/4This issue of V V is sponsored by Com. Rathnakar. ITO.Hospet
INCOME TAX GAZETTED OFFICERS ASSOCIATION
Karnataka & Goa Unit, C.R. Building Annexe, Queen’s Road, Bangalore - 560 001. e-mail: [email protected]
ITGOA ZINDABAD JCA ZINDABAD COC ZINDABAD
March 2012
K.A.JAMADAR Vice-President 9241342225
K.R.NARAYANA General Secretary
8762300942
SHASHIDHAR S SHET President 9448660614
Dear comrades,
We are placing this issue of VV at the time when we
are approaching the new financial year and budget
for the next year is presented. The year passed by,
saw the longest ever agitation in pursuit of our
demands. While we have succeeded on certain
demands, other demands are yet to be met. Thatshall only strengthen our resolve to fight till we reach
the goal. While sharing news and views on many
issues, we eagerly wait for your critical suggestions.
Around 50 % of our members are working outside
Bangalore. Their active involvement is essential for
participative decision making in its true sense. In this
direction, the President, Vice-President and GeneralSecretary have made organizational tour to Hubli,
Belgaum, Panaji, Mangalore and met members.
Consultations were also held with members in other
stations. Accordingly, out-station members have
chosen their Vice-Presidents, Zonal Secretaries and
Regional Secretaries. This has further strengthened
the association. We wish them all the best and hope
they will scale further heights to serve the members
and the organization.
Further strength at Zonal and Regional levels
GREAT VICTORYst
Time Barring date restored to 31 Marchst
Right from day one, the association fought for restoring TB date to 31 March. There was no MC meeting or
General Body Meeting, which did not discuss this issue. The anguish and agony of members were articulated in
every fora. This sustained struggle has now yielded result. The Finance Bill 2012, has proposed to amend sectionst
153, to restore TB date to 31 March. We are very happy that the Hon'ble FM has acceded to our demand. We
thank him profusely. With this positive development, we are sure that the tension of our members will ease,
enabling them to do better investigations and pass wonderful/ quality orders to get more satisfaction andrecognition.
Com. K.A.Chandrakumar Vice-President
Com. Vijayakumar BudihalZonal Secretary, Panaji
Com Muralidhar NayakRegional Secretary, Mangalore
Com NavalgundRegional Secretary , Belgaum
Com. Sainathan Mudaliar Vice-President
Com Ramesh A JoshiZonal Secretary, Hubli
Com MarennaRegional Secretary, Gulbarga
Com Bhaskar Regional Secretary , Davanagere
Com G.SureshRegional Secretary, Mysore
Com S.K.Virginkar Regional Secretary, Panaji
K A CHANDRAKUMAR Vice-President
SAINATHAN MUDALIAR Vice-President
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Felicitation to Ex-All India President
Com B. Shanthikumar, Ex-AllIndia President who has maderemarkable contribution to thew e l f a r e o f m e m b e r s f o rdecades was felicitated bySri K. Sathyanarayana CCIT,Bangalore on our behalf on
th15 Feb. 2012 at Bangalore.
B
S
H
A
N
T
H
I
K
U
M
A
R
= Bold
= Sportsman,
Singer, Strategist
= Handsome
= Association man
= Never dull
= Tidy
= Hard Working
= Intelligent
= Kreative
= Understanding
= Musician
= Artist
= oRator
Successful Walk out
New ACsIT
thThe national call of half day walk out on 28 February was
successfully observed in our charge by active participationof all members up to the level of Additional CITs. This
demonstrates their faith in and appreciation of the
Association for the concerted efforts in getting Ad-hoc JCIT
promotions, fighting resolutely in courts for their seniority
and for getting ACIT promotions. Red salutes to all
comrades for the unity exhibited.
The DPC for 204 posts of ACsIT was conducted by UPSC onth th
5 & 6 March. The minutes of DPC have since reached the
CBDT. Assurance has been given to our leaders, in theth
meeting on 13 March, that the promotion orders will be
issued very shortly. Meanwhile, our leaders have
requested the Board to call for the choice place(s) of
posting and effect posting orders in the coming AGT. As
per unofficial information, following comrades from our
charge will get promotion:
1. Com. Anuradha
2. Com. Sajit Kumar
3. Com. Nagabhushana
4. Com. Nazeera Mohammed5. Com. R.L. Benakatti
6. Com. Shivaprasad Reddy
7. Com. V.Rajashekar
8. Com. R.Suresh
9. Com. Shivaprakash
10. Com. S. Lakshmi
11. Com Venkatappa
Hearty Congratulations and Best wishes to them for a
glittering career in the new cadre. Though their
promotions were inordinately delayed, our wishes will
reach them in advance.
Partial withdrawal of Agitation We are aware that some members are not happy about
relaxation of agitation. We only try to impress upon
them that, in such situations visions broader than
personal one are required to be taken by the Association
in the interest of all members. Understanding of the
process which took place before deciding to relax the
agitation may put the things in right perspective.
Before taking a decision on relaxation of agitation, the
CHQ had called for the views of all units. We had also
elicited views from VPs, ZSs and RSs from out-stations. Inth
the EC meeting held on 9 March, after considering all
pros and cons, our unit had suggested, ending the
agitation for the following reasons:
a. It is better to launch agitation under JCA banner.
b. We have to put all pressure on the Board for
conducting ad-hoc DPC for 207 posts. At the same
time it is better to end the stalemate.
c. We need to secure our interests in Cadre
restructuring.d. If agitation is ended by 15th, our members will get
some time to show better performance for the year.
However, we insisted that the reports of earlier months
should not be called and if the Board does not conduct
DPC for 207 AC posts, within reasonable time, we should
start fresh agitation under JCA banner. CHQ has
considered the views of all units. Our leaders met the
Chairman, Member (P&V) and other members, who have
assured to do their best in resolving all pending issues
including ACIT ad-hoc promotions. It was also assured to
issue ACIT Promotion Orders for 204 posts in March
2012 itself and take required actions for effecting ACIT
Ad-hoc promotions. In view of the positive actions and
written assurances, our national leaders decided to
withdraw the agitation partially. A detailed circular on
this matter has already been issued separately. We hope
the members have received it and concur with the
decisions taken by the association.
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Highlights of Finance Bill 2012
The Finance Bill 2012 has proposedseveral amendments strengtheningenforcement machinery against taxevasion. The decision of the Hon'bleSupreme Court in Vodafone case andfavorable decision of Hon'ble KarnatakaHigh Court in Samsung case haveprompted certain clarifications. Many
amendments will take effect retrospectively requiring us to takeactions based on the changed Law . Some of its highlights arereported for the benefit our members.
1. - Explanation inserted for removal of doubts and clarify that “property” includes any rights in or inrelation to an Indian company, including rights of management or control or any other rights whatsoever.
2. - Explanation 2 inserted to clarify that“transfer” includes disposing of or parting with an asset orany interest therein creating any interest in any asset in anymanner whatsoever, directly or indirectly, absolutely orconditionally, voluntarily or involuntarily, by way of anagreement (whether entered into in India or outside
India)…… Section 9 is also amended to clear any doubtsabout taxation of such transactions.
3. - Computer software and “process” of transmission by satellite (including up-linking, amplification,conversion for down-linking of any signal), cable, optic fiberetc are now clearly brought under the tax net.
4. -For policies issued after 1-4-2012, if premiumpayable exceeds 10% of actual capital sum assured, thematurity amount from such policy would be taxable.
5. -says that exemptions u/s 11 & 12 shall not apply to theincome of a trust from the activity of trade, business etc foradvancement of any other object of general public utility.
6. - Though assessee has not deducted tax , if he is not
deemed to be an assessee in default under 201(1) as thepayee , who is a resident, has filed return of income and paidthe tax, disallowance u/s 40(a)(ia) can be made.
7. -Monetary limit raised to 1 crore for business and 25lakhs for profession-Instead of common date for submittingaudit report, i.e. 30th September, time given till due date forfiling the return.
8. The section now made applicable cases with turnover up to 1crore – However, with retrospective effect from AY 2011-12the section is made not applicable for Professions,Commission or Brokerage income and any Agency business .
9. -In cases where sale consideration is not ascertainableor cannot be determined the FMV , shall be deemed to bethe full value of the consideration.
10. -The exemption of CG in respect of transfer of agricultural land, which was till now applicable to individualis extended to HUF also.
11. In present section reference to VO can be made only if thevalue determined by the registered valuer is less than FMV.
12. -From 1-7-2012, the section amended to enablereferencing of cases to determining cost of acquisition alsoto VO
13. -Now the term “relative” with reference to HUF is also
defined to mean any of its member. w.r.t.from 1-10-2009
14. -Extended to Pvt Ltd company, when it receives any
consideration for issue of shares, if such consideration is in
excess of FMV of such shares.
2(14) Capital asset
2(47)-Transfer
9(1)(vi)-Royalty
10(10D)
13(8)
40 (a)(ia)
44AB
50D
54B
55A
56
56(2)
15. - made applicable for share application money, share
capital etc credited in the books of Pvt Ltd companies
unless, the said share holder offers satisfactory explanation
about the source of that investment.
16. - Insurance premium the deduction shall now be
restricted to 10% of the Capital Sum assured.
17. -No deduction for cash donations above Rs
10,000.
18. -Deduction for SB interest earned up to Rs 10000from Bank or Post office
19. - Sub-section 2A inserted to state that, even where there
is DTAA, Chapter X-A (A detailed chapter for General Anti
Avoidance Rule ) shall apply though that chapter is not
favorable to him. Further sub-section 4 introduced to make
production of certificate of residence mandatory for
claiming any relief under DTAA.
20. -Transfer pricing regulations made applicable even for
Specified domestic transactions u/s section 92BA.
21. -Tax rate increased to 20%- Made applicable even
for a NR entertainer( Three cheers to cheer girls)
22. - Additions u/s 68,69,69A to D shall be taxed at 30%-No deductions from such additions.
23. -Alternate Minimum Tax now extended to all other
Non –Company entities having adjusted total income
above 20 lakhs.
24. -Return filing made compulsory for a resident if he has
any, Asset located outside India or signing authority in any
account located outside India.
25. -Processing u/s 143(1) shall not be required once 143(2)
notice is issued- Third proviso introduced to say that
10(23C) shall not be allowed by an AO to a trust in respect of
trading/business income, whether or not its approval is
withdrawn.26. :The restriction in first proviso about reopening of cases
concluded scrutiny shall not apply to income in relation to
any asset (including financial interest in any entity) located
outside India has escaped assessment- Explanation 2
amended to say that, where the assessee has failed to
furnish TP report or he is found to have any asset (including
financial interest in any entity) located outside India, it is
deemed that income has escaped assessment- Explanation
-4 introduced in section 147 to say that the amendments
made by Finance Act 2012 shall be applicable for AY 2012-
13 and all earlier AYs.
27. -If assessee is found to have any asset (includingfinancial interest in any entity) located outside India, it is
deemed that income has escaped assessment and the
reassessment notice can be issued even up to 16 years.
28. -From AY 2010-11 onwards and reassessment cases, the
time barring date extended up to 31st March-In cases
where reference is made calling for information under
DTAA, the time is presently extended by another 6 months,
now it is increased to 12 months.29. -Individual payee is presently exempted from TDS on
debenture interest if, it doesn't exceed 2500/- and paymentis by a/c payee cheque- This benefit is now extended toHUF-Monetary limit hiked to 5000/- .
68
80C
80G & GGA
80TTA
90
92
115BBA
115 BBE
115JC
139
143
147
149
153
193
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To,Smt. / Sri
BOOK-POST
K.R.NarayanaGeneral Secretary
On behalf of Editorial Committee
30. -TDS Rate hike to 20% from present 10%.
31. -TDS on compensation for acquisition of immovable
property – monetary limit hiked to 2 lakhs.
32. -Buyer has to make TDS on sale consideration of land
or building (except agricultural land ) at 1% if transfer price
is 50 lakhs or more in specified cities and 20 lakhs or more in
other specified cities .
33. -Empowers CBDT to notify class of persons who are
paying any sum to NR, whether chargeable to tax or not, shall
apply to AO to determine sum chargeable .
34. - In cases where TDS return is not filed, action for
treating him in default for failure to deduct tax , can now to
taken up to six years from the end of FY. Presently it is 4 years.
35. -1% TCS imposed on coal or lignite or iron ore and
bullion/jewellery for cash of 2 lakhs and above.
36. -Any person of age 60 years is exempted from payment
of Advance Tax if he doesn't have income from business or
profession
37. -Till now, the TDS/TCS could have been reduced
from AT liability even if payment has not actually subjectedto TDS/TCS. Section is now amended to permit such
decrease only if TDS/TCS is actually made.
38. -Explanation 2 is inserted to clarify that this section
applies to AYs prior to 2003-04 also if the proceedings for
those years are completed after 1-6-2003.
39. -Levy of Rs 200 fee for each day of delay in filing TDS/
TCS returns. Applicable for returns filed on or after 1-6-2012 .
40. -Subsection 2A inserted to empower CIT to direct AO to
file appeal to ITAT against the Assessment order passed by
him in accordance with directions issued by DRP on the basis
of objections filed by the assessee after 1-7-2012.
41. -penalty in search cases-provides for 10% whereadmitted u/s 132(4), 20 % where NOT admitted u/s 132(4)
but return filed including that income & 30%-90% in all other
cases.
42. -From 1-7-2012 , for not furnishing TDS/TCS returns or
furnishing incorrect information. Penalty from 10000 to 1
lakh -No penalty if such returns are furnished with one year
from the prescribed date after payment of tax, interest and
FEE
43. (wrf 1-4-1976)-No need to issue separate warrants
u/s 132. it can be combined for more than one person.
Combined notice shall not be deemed as issued against
- Though warrant is combined one, the
assessments can be made separately on each person
mentioned in warrant.
44. -Asset definition u/s 2(ea)- Residential building allotted
by a company to employee or director whose annual salary is
less than 5 lakhs is exempt. This limit now hiked to 10 lakhs
Guest house
45. -Reassessment in respect of asset located outside India
–time limits for reopening and other procedures same as in
IT Act
46. -Time barring dates extended to 31st March
194E
194LA
194LAA
195
201(3)
206C
207
209(1)(d)
234D
234E
253
271AAB
271H
292CC
AOP/BOI
WT
WT
WT
We miss him from AprilCom. P. Suleman, ITO Ward-2, Bellary ( 94488 50431)
“ We mustn't
allow what we can't do to interfere with what we can
do”.
“ Helping
is a warm feeling and it takes us near real GOD”
th
Born on 10 March 1952, he joined our
Department as LDC in 1971. He was
promoted as ITI in 2001 and as ITO in
2008 and working in present post for last
2 years. Apart from Panaji, he has
worked in Gadag, Raichur, Davangereand Chitradurga. He enjoys reading, gets dissolved in the
nector of old Hindi songs and jumps for the superlative
strokes of Cricket. He strongly believes that
On the eve of his retirement, he has called upon
everyone to help the needy with the message
Happy
Retirement wishes to him, on behalf of entire ITGOA, KTK
& GOA.
This issue of V V is sponsored by Com. Rathnakar. ITO.Hospet
With Best wishes for successful New Financial Year
& special thanks to Com. Rathnakar ITO, Hospet