Income Tax update 1. TDS Lower deduction -time mandate 2. PAN application Fees revised. 3. Sec 50C does not lead to escapement of Income

1. Issue or Reject Lower / Nil deduction tax Certificate U/s. 197 within one Moth : CBDT

2. PAN Application fees revised upward

3.Sec. 147: Failure to compute capital gains u/s 50C does not lead to escapement of income

Issue or Reject Lower / Nil deduction tax Certificate U/s. 197 within one Moth : CBDT

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES
NEW DELHI

INSTRUCTION NO 1/2014, Dated: January 15, 2014

Certificate of Lower deduction or non-deduction of tax at source under section 197 of the Income-tax Act, 1961 – matter regarding.

As per the Citizens Charter the time line prescribed for a decision on application for no deduction of tax or deduction of tax at lower rate is one month. Instances have been brought to the notice of the Board, about considerable delay in issuing the lower/non deduction certificate under section 197 by the jurisdictional Assessing Officers.

2. I am directed to say that the commitment to tax payers as per the Citizens Charter must be scrupulously adhered to by the Assessing Officers and all applications for lower or no deduction of tax at source filed u/s 197 of the Income-tax Act, 1961 must be disposed of within the stipulated time frame as above.

3. This may be brought to the notice of all officers in the field for compliance. 4. Hindi version will follow.

F.No.275/03/2014-IT(B)

(Sandeep Singh)

Under Secretary to the Govt. of India

http://taxguru.in/income-tax/issue-reject-nil-deduction-tax-certificate-197-moth-cbdt.

PAN Application fees revised upward

NSDL vide its circular No.: NSDL/TIN/2014/004 dated 15th January 2014 has informed that the Income Tax Department (ITD) has revised PAN application fee

• From Rs. 96 to 105/- (For dispatch of PAN card in India)
• From Rs. 962 to 971/- (For dispatch of PAN card outside India)

Both the above charges are inclusive of service tax

 

http://taxguru.in/income-tax/pan-application-fees-revised-upward.html

S. 147: Failure to compute capital gains u/s 50C does not lead to escapement of income.ITAT AGRA

The assessee sold property for Rs.6 lakh and offered capital gains on that basis. The AO accepted the claim without examining the applicability of s. 50C. He later (within 4 years from the end of the AY) reopened the assessment on the basis that the stamp duty valuation was Rs. 25 lakhs and the capital gains had to computed on that basis u/s 50C. The assessee challenged the reopening inter alia on the ground that the failure to apply s. 50C did not mean income had escaped assessment. The CIT(A) accepted the plea. On appeal by the department to the Tribunal HELD dismissing the appeal:

S. 50C is not a final determination to prove that it is a case of escapement of income. The report of the approved valuer may give estimated figure on the basis of facts of each case. Therefore, mere applicability of s. 50C would not disclose any escapement of income in the facts and circumstances of the case. The AO at the original assessment stage considered all the documents and material produced before him and has accepted the cost of property as was declared by the assessee. The reassessment is on change of opinion which is not justified

More details available at

http://itatonline.org/archives/index.php/ito-vs-haresh-chand-agarwal-huf-itat-agra-s-147-failure-to-compute-capital-gains-us-50c-does-not-lead-to-escapement-of-income/