Oza & Ratnani

Tax payer whose aggregate turnover exceed 50 crore will have to generate E-invoice w.e.f. 1st April 2021

e-campaign :- The opportunity for the non-filers to file their income tax return and for return filers to revised their income tax return for AY 2019-20 to avoid notice and scrutiny process etc...

CBDT circular for Relief to NRI’s on residency status

SECTION 139 OF THE INCOME-TAX ACT, 1961 - RETURN OF INCOME - RELEASE OF E-FILING OF INCOME TAX RETURNS AND OTHER FORMS
PRESS RELEASE, 2016- 04 -4
In pursuance of the Notification of the Income Tax Returns (ITR) for AY 2016-17 on March 31st, 2016, Central Board of Direct Taxes announces the release of electronic filing of ITRs 1 and 4S on its website https://incometaxindiaefiling.gov.in. Other ITRs will be e-enabled shortly.
Online filing of Appeal before Commissioner (Appeal) using newly notified Form 35 has been enabled for taxpayers mandated to E-file their returns using Digital Signature Certificate. Electronic Verification Code (EVC) option will be available shortly for other category of taxpayers. Reference may be made to Notification 11/2016 dated 1 March 2016 for the various categories of taxpayers required to file appeal online.
In pursuance of Notification No. 93/2016 dated 16th Dec. 2015, effective from 1 April 2016, the following forms have been substituted by new forms and are now available for E-filing:
i. Form 15CA-payments to a non-resident not being a company, or to a foreign company,
ii. Form 15CB-Certificate of an accountant,
iii. Form 15CC-Quarterly statement
Vide Notification No. 3/2016 dated 14th Jan. 2016, CBDT had substituted with effect from 1 April 2016, Forms 9A (Application for exercise of option under clause (2) of the Explanation to sub-section (1) of section 11 of the Income tax Act, 1961) and Form 10 (Statement to be furnished to the Assessing Officer/Prescribed Authority under sub-section (2) of section 11 of the Income tax Act, 1961). These forms can be filed online using Digital Signature Certificate on the Income Tax Department's e-filing website. EVC option will be available shortly.

e-Filing Home Page, Income Tax Department, Government of India "I have been efiling my returns for the last four AYs and I find the Portal very user friendly. I am indeed delighted that filing ITR and getting IT Refund(if any) has become much easier. I compliment the IT Department for their consistent effort in facilitating more user-friendly ITR filing." - 28/…

Formula under Rule 8D for common interest expenses is inconsistent with legislative intent : HC

IT : Variable 'A' prescribed in the formula in Rule 8D(2)(ii) (to make disallowance in case of common interest expenditure) would exclude both interest attributable to tax exempt income as well as taxable income.

• The object behind Section 14A (1) is to disallow only such expense which is relatable to tax exempt income and not expenditure in relation to any taxable income. This object behind Section 14A has to be kept in view while examining Rule 8D (2) (ii). In any event a rule can neither go beyond or restrict the scope of the statutory provision to which it relates.

• Rule 8D (2) states that the expenditure in relation to income which is exempt shall be the aggregate of (i) the expenditure attributable to tax exempt income, (ii) and where there is common expenditure which cannot be attributed to either tax exempt income or taxable income then a sum arrived at by applying the formula set out thereunder. What the formula does is basically to "allocate" some part of the common expenditure for disallowance by the proportion that average value of the investment from which the tax exempt income is earned bears to the average of the total assets. It acknowledges that funds are fungible and therefore it would otherwise be difficult to allocate the sum constituting borrowed funds used for making tax-free investments. Given that Rule 8D(2)(ii) is concerned with only 'common interest expenditure' i.e. expenditure which cannot be attributable to earning either tax exempt income or taxable income, it is indeed incongruous that variable A in the formula will not also exclude interest relatable to taxable income.

• There the ITAT said that by not excluding expenditure directly relatable to taxable income, Rule 8D(2)(ii) ends up allocating "expenditure by way of interest, which is not directly attributable to any particular income or receipt, plus interest which is directly attributable to taxable income." This is contrary to the intention behind Rule 8D(2)(ii) read with Section 14A of (1) and (2) of the Act.

• What the ITAT has done in the present case instead is to follow its earlier decision in ACIT v. Champion Commercial ltd. [2012] 26 taxmann.com 342 (Kol.) which in turn followed the decision of the Bombay High Court in Godrej & Boyce Mfg. Co. Ltd. (supra). The ITAT did not on its own read down rule 8D (2) (ii). Rather, it went by the stand taken by the Revenue before the Bombay High Court in Godrej & Boyce Mfg. Co. Ltd. (supra) in countering the challenge to the constitutional validity of Rule 8 D (2). The stand of the Revenue was that variable A in the formula in Rule 8D (2) (ii) would exclude both interest attributable tax exempt income as well as taxable income.

• Therefore the Court is unable to agree with the Revenue that in adopting the above interpretation the ITAT has on its own read down Rule 8D (2) (ii) of the Rules and therefore travelled beyond the scope of its jurisdiction and powers.

http://www.taxmann.com/topstories/101010000000165603/formula-under-rule-8d-for-common-interest-exp-is-inconsistent-with-legislative-intent-hc.aspx

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The Reserve Bank of India has extended the date for the public to exchange their pre-2005 banknotes till December 31, 2015. It had, in December 2014, set the last date for public to exchange these notes as June 30, 2015.

Soliciting cooperation from members of public in withdrawing these banknotes from circulation, the Reserve Bank of India has urged them to deposit the old design notes in their bank accounts or exchange them at a bank branch convenient to them. The Reserve Bank has stated that the notes can be exchanged for their full value. It has also clarified that all such notes continue to remain legal tender.

Explaining the move, the Reserve Bank said that the banknotes in Mahatma Gandhi series have now been in circulation for a decade. A majority of the old banknotes have been withdrawn through bank branches. It has, therefore, decided to withdraw the remaining old design notes from circulation. Not having currency notes in multiple series in circulation at the same time is a standard international practice, the Reserve Bank has pointed out.

The Reserve Bank will continue to monitor and review the process so that the public is not inconvenienced in any manner.