Income Tax :- Revised Return can be submitted or not .

Friends,   Revised return can be submitted through both procedures like  on line or off line mode.  Online mode is simple and easy, there are many columns who  filled automatically through system.   Automatically filled system avoid errors in return.   However revised return option can be selected after selection of code 17 -Revised 139 (5) in col. A21 which is also shown in below picture. 

Difference between revised and rectification is that revised return can be submitted before assessment or rectification return can be submitted after assessment.

Requirement of Revised Income Tax Return

1. To rectify Return Data, like BSR code , Bank account number, income detail, IFSC code etc. 
2. To Change address in case refundable return. 
3. To increase or decrease  income which has been forgotten while submitting original return. 
4. Others

Exemption from Filling of Income Tax Return

Friends,  Now a days , many persons are waiting for Notification for exemption from filling of Income Tax Return.  Without notification nothing is clear like from which Financial Year exemption will be given, having interest income on Saving Bank Deposit will be treated  for exemption for filling of Income Tax Return etc. 

NO NEED TO FILE INCOME TAX RETURN

         Now CBDT has clearly notified that an individual  getting salary upto 5 Lakh after allowing all deductions from a single employer and getting interest income up to Rs. 10,000 from his Saving Bank Deposit account will be eligible to get exemption from filling of Income Tax Return from the Financial Year 2010-11 with some conditions like he will provide his PAN number to our employer and will  submit complete bank interest detail and also pay all amount of Income Tax in the shape of TDS deduction from salary and also receive form 16 from his employer.  There are some more conditions in which exemption for filling of Income Tax return will not be provided.  Therefore , all individuals are requested to read complete Notification which is given below  issued by CBDT before getting exemption for filling of Income Tax Return. 

No.402/92/2006-MC (14 of 2011) 

Government of India / Ministry of Finance 

Department of Revenue 

Central Board of Direct Taxes 

***

New Delhi, dated the 23rd June, 2011 

PRESS RELEASE 

The Central Board of Direct Taxes has notified the scheme exempting salaried  taxpayers with total income up to Rs.5 lakh from filing income tax return for assessment year  2011-12, which will be due on July 31, 2011. 

Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable  deductions, consisting of salary from a single employer and interest income from deposits in  a saving bank account up to Rs.10,000 are not required to file their income tax return. Such  individuals must report their Permanent Account Number (PAN) and the entire income from  bank interest to their employer, pay the entire tax by way of deduction of tax at source, and  obtain a certificate of tax deduction in Form No.16.  

Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme. 

The scheme shall also not be applicable in cases wherein notices are issued for filing  the income tax return under section 142(1) or section 148 or section 153A or section 153C of  the Income Tax Act 1961.

xxxx

Notification 


NOTIFICATION NO. 36/2011 [F. NO. 142/09/2011 (TPL)]

DATED 23-6-2011

In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, namely :—

Class of Persons

1. An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,—
   (A)  “Salaries”;
   (B)  “Income from other sources”, by way of interest from a savings account in a bank, not exceeding ten thousand rupees.
   Conditions
2. The individual referred to in para 1,—
   (i)  has reported to his employer his Permanent Account Number (PAN);
   (ii)  has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;
   (iii)  has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;
   (iv)  has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;
   (v)  has no claim of refund of taxes due to him for the income of the assessment year; and
   (vi)  has received salary from only one employer for the assessment year.
3. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.
4. This notification shall come into force from the date of its publication in the Official Gazette.

Last circular vide which e-filing was mandatory for those whose total income exceeds 10 lakh. 

MANDATORY e-FILING OF INCOME TAX RETURN

PRESS RELEASE [NO. 402/92/2006-MC (12 OF 2012)], DATED 2-7-2012

CBDT has issued notification S.O. 626(E), dated 28th March 2012 vide which e-Filing has been made compulsory for Assessment Year 2012-13 onwards for :

  •  an individual or a Hindu undivided family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds ten lakh rupees; and

  •  an individual or a Hindu Undivided Family (HUF), being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4.

However, digital signature will not be mandatory for these taxpayers and they can also transmit the data in the return electronically and thereafter submit the verification of the return in Form ITR-V.

2. Filing of returns electronically under digital signatures is already mandatory for any company required to furnish the return in Form ITR-6 or a firm required to furnish the return in Form ITR-5 or an individual or HUF required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable.

3. The Income Tax Department has received a record number of 1.64 crore income tax returns electronically in the year 2011-12. E-filing is an easy, fast and secure method of filing of income tax return. The electronically filed returns are processed at the Centralized Processing Centre, Bengaluru. The processing for e-filed return is faster and taxpayers get their refunds, if due, quickly. The Department also provides some value added services like tracking of refunds, viewing tax credit status (Form 26AS), e-mail and SMS alerts regarding status of processing and refunds to taxpayers who e-file their returns.

(If you are not cover in above Exemption, You should file your Income Tax Return in Time,
to submit return yourself (click here))

Processing of TDS Return

Friends

                  As per Income Tax Act Section 200A, TDS return processing has been started.  After processing TDS return, intimationis to be sent to the concerned decutor/collector.   Three major or good rectification has been done w.e.f. 01-07-2012 regarding intimation of TDS returns which are given as under :-

1. Under section 154, rectification can be done in TDS intimation. 
2. Against the intimation under section 245A, CIT (Appelas) can be done. 
3. After intimation of TDS return, under section 156 will be treated  demand notice. 

Rectification of Depreciation

Rectification of wrongly claimed depreciation, through filing of a letter to AO, is allowed when no fresh claim is made

The assessee claimed the depreciation on a newly installed windmill on the basis of WDV method at the rate of 15%. Subsequently, when assessee realised the mistake that correct rate of depreciation would be 80%, it filed a letter before assessing officer to rectify the claim and to provide deprecation at the rate of 80%. The assessing officer rejected the claim considering the principle laid down by the Supreme Court in Goetze (India) Ltd. vs. CIT [2006] 157 Taxman 1 that a fresh claim cannot be made by the assessee other than by filing a revised return.

The Tribunal held that the assessee was not making a fresh claim before the assessing authority. Infact, the assessee had made a claim for depreciation but the rate chosen was not a correct one. Thus, the judgment of the Supreme Court in the Goetze (India) Ltd. (Supra) would not apply to the present case. Further, as per Explanation 5 to Section 32(1), the depreciation would be allowed whether or not the assessee has claimed the depreciation in computing the total income. Therefore, the assessing officer was duty bound to allow the depreciation computed at the correct rate provided under the Act. - ITO v. SRI BALAJI SAGO AND STARCH PRODUCTS [2012] 19 taxmann.com 313 (Chennai - Trib.)

One More addition by NSDL regarding 143(1)/Refund/154 Service Request

Friends

               Income Tax Department has provided a new link for downloading 143(1)/Refund/154 Service Request.  In the last year, Department has sent it through post/e-mail.  But now service has been added in Login for e-filing of Income Tax Return website.  To submit a new request , two questions are required to complete. 

1. Category
2. Sub-Category

Only one request at a time for the category, assessment year combination is allowed.  Further queries will be allowed only after the previous queries solved. 

Detail of Category and Sub-Category are given as under :-

Category

• Intimation u/s 143(1)
• Rectification Order u/s 154
• Refund re-issue.

Sub-Category

• Intimation u/s 143(1)
  1. Resend Print to ITR Address
  2. Resend Print to PAN Address
  3. Resend Print to New Address
  4. Resend by E-Mail
  
• Rectification Order u/s 154
  1. By Print to ITR Address
  2. By Print to PAN Address
  3. By Print to NEW Address
  4. By E-Mail
  5. Latest By Print to ITR Address
  6. Latest By Print to PAN Address
  7. Latest By Print to New Address
  8. Latest By E-Mail.
  
• Refund re-issue.
  1. By Paper to ITR Address
  2. By Paper to PAN Address
  3. By Paper to New Address
  

Screen demands new columns for  requesting New Address in different categories.  Categories wise screen for New Address are given below :-

On selecting Intimation u/s 143(1)

On selecting Rectification Order u/s 154

 On selecting Refund Re-issue

How to Submit Revised ITR (Income Tax Return)

Friends,   Revised Indian Income Tax Return can be submitted after successful submission of Original Income Tax Return.   No doubt that the Submission of Revised Income Tax Return is easy than submission of Original Income Tax Return.  I had submitted revised Income Tax Return before two years ago and just submitted today.  There was difference due to updation in system which I want share with you.

Section 139(5) in Detail given as under:-

⁹⁸[(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under
sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :

Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.]

Select "Revised " in option of Whether Original or Revised Return ?" and then the following three items are required to submit Revised Income Tax Return :-

1. Receipt No of Original Return
2. Date of Submission of Original Return
3. Entry of Code  16-u/s 139(5) as shown in above screen. 

The above three major items are required to submit Revised Income Tax Return and then you can rectify your data as rectification and generate XML file for successful uploading.

Online Rectification Request to rectify Intimation order issued under section 143 (1) by Centralized Processing Center, Bangolore

Friends, 

       If you are thinking of seeking rectification of the intimation issued by Centralized Processing Center at Bangalore, then you much carefully review the Common Errors Guide and the typical causes of error presented below in order to prepare an accurate rectification request and thereby ensure that you get a proper resolution from CPC in the form of an rectification order. 

      Please do not jump into conclusions or get misguided by others and there are mistakes in processing software; more likely than not the data in the e-return submitted by you was either incomplete or incorrect resulting in calculation different than what is expected by you. 

       for every variation between what you have computed as your tax liability and your refund and what was finally the outcome of precessing at CPC there is a logical and explanation and therefore, a possible resolution.

1.   Salary Income shown at higher figure than entered :- In Salary schedule higher figure is reported under Gross salary which should be excluding Exempt Income (such as transport allowance etc. ).   Taxpayer may have mentioned Transport allowance in Exempt Income and may have deducted the same to arrive at a lower net figure in the final calculation.   However, the Exempt Income is to be mentioned only for reporting purposes and should not be used in any calculation. 

2.  Loss Under House Property due to Interest paid on loans is not allowed :-  In the House property schedule the interest paid value is not entered.  Instead only the loss figure is mentioned in the final total.   The totals are re-calculated while processing the return from the basic valued provided.  If the break up values are not provided then the total will be calculated as zero.

     The other possibility is that even if the House Property Schedule was correctly filled, the taxpayer has not claimed the loss in Schedule CYLA.   Therefore, even if loss is correctly shown in Sch HP, the adjustment of this loss is not automatic.   It has to be entered in the first row against Salary Income as shown to indicate that the loss is adjusted against salary income. 

3.  Tax Payment is not allowed : BSR code, challan number and date of deposit may have been incorrect since any mismatch may lead to rejection of tax payment.  Date of deposit of challan cannot be beyond or after date of filing of return. 

      Taxpayer should NOT report tax payments made by Deductors as given in Form 16 or Form 16A as their own payment under Schedule IT.  This is meant only to enter tax payments Directly made by taxpayer himself. 

4.   TDS Credit is not allowed :  Taxpayer should ensure that the TAN number is valid and as per the Form 16A issued by Deductor. 

      PAN number of Deductor should not be mentioned in place of TAN.  

      In many cases Deductors may have given TDS certificate with certain TAN but submitted TDS return to Department under different TAN. This may happen where many group concerns operate in a flexible manner.   This should be verified by cross-checking against the 26AS statement for the taxpayer which is available through NSDL or at the e-filing website.  Any error by Deductor should be immediately pointed out and correction ensured.

5.  Chapter VIA deduction specially 80C deduction is not allowed :  While filling in Deductions in Chapter VI -A, taxpayer must ensure to fill up the breakup showing all individual Section-wise deductions such as 80C etc, and then mention the Total Deduction claimed.  At the time of processing, it is not clear under what section is the deduction claimed if details are not given.  since each deduction has different limits and eligibility, it is not possible to allow deduction only from the total. 

6.   Deduction under Chapter 80G or 80IA etc. is not allowed :  Details u/s 80G in Sch. 80 G (where the schedule is available in the return ITR-4, 5 and 6) along with correct totals may not have been entered, before claiming the total in Chapter VI-A.  Similarly, other schedules such as 80IA/IB etc must also be filled in where relevant schedules are in the ITR, before claiming Deductions in Chapter VI-A.  Mentioning only the final total values in Chapter VI A Schedule or the total Deduction is not sufficient. 

7.   Tax Rate applied by CPC is not as per rates for Female Taxpayers or Senior citizens or for firms or domestic company. MAT is applied :   Tax payer may have entered Gender as Male or entered date of birth incorrectly. 

      Alternatively, taxpayer may have entered these details correctly but the details are different in PAN database, in which case the data in PAN database has to be corrected by taxpayer by giving proof and details. 

    For assessee filing return ITR-5, Status (such as cooperative society, Firm, etc. ) in the General Information Portion may not have been selected correctly.  Incorrect status selection can lead to taxation at higher rate or disallowance on specific deductions like 80P, etc. 

      For taxpayers filing ITR-6, the correct selection while opting for item under General Information relating to "If a Domestic Company" must be made.  Domestic companies MUST NOT select "N" is selected the tax rate applicable to Foreign Companies will be applied, leading to higher taxation. 

      Schedule MAT MUST be filled by all taxpayers filing ITR 6 irrespective of whether the book profit calculations result in application of provisions of MAT.  Taxpayer may not have calculated MAT. 

8.  Income from Business is not correctly Computed :  There are many reasons for variation in income from Business : While entering Totals (for ex Total Duties and Taxes etc. ) breakup is not given. 

     Value entered in Sl. no. 42 (Depreciation) (where books of accounts are maintained ) should match the value in Sch BP: Sl no 11 (Depreciation debited to P&L Account) Profit Before Tax (and not Profit After Tax) should be entered in item 1 of Sch BP.

      Depreciation allowable under IT Act u/s 32(i)(ii) must be as per Sch DEP.  When Schedule Profit and Loss is filled with a claim for depreciation but depreciation amount is either not added back at item A11 in Schedule BP or details of depreciation in plant and machinery and other assets are not filled by the assessee in Schedule DPM, DOA and Schedule DEP, this may lead to disallowance of depreciation.  

      Schedule DPM,DOA and DEP should NOT be left blank if Depreciation is being claimed.  Entering total value of Depreciation in SI A12 in Schedule BP WITHOUT entering DPM,DOA, DEP will lead to disallowance of Depreciation. 

      Where block ceases to exist, enter correct value in Capital Gains/Loss u/s 50.  Under NO OTHER CIRCUMSTANCE should item 16 be filled.  Negative value, if entered in SI 16, implies that block ceased to exist and then no Depreciation will be allowed for that block. 

      Where P&L account is filled and includes Deemed Income u/s 44AD, 44AE 44AF etc, ensure that relevant figures in A4 and A33 in Sch BP are correctly filled Total of Deemed Income (IF NON ZERO) under Sections 44AD, 44AE, 44AF, 44B, 44BB, 44BBA, 44BBB, 44D, 44DA, Chapter XII-G and First Sch of IT Act as per SI no  33 of Sch BP) should not be hence lower than SI no 4 of Sch BP. 

      In case nature of business does not include Tea/Coffee/Rubber, the net profit or loss from business or profession after applying Rule 7A,7B, 7C in A37 should be entered as the same value are arrived in SI no 36 of Sch. BP. 

      Where Schedule OI is filled with details of disallowances or amounts which are to be added back to income due to the provisions like 36,37, 40, 40A, 43B, assessee must fill in the details in Schedule BP in arriving at the processing these disallowances are taken from Schedule OI and applied to relevant items in Sch BP.  This will result in increase of income under Business due to these disallowances. 

9.  Losses Brought Forward from previous years has not been allowed :   Before claiming adjustments in Sch BFLA, ensure that Schedule CFL is not left empty.  The correct breakup of the losses claimed for setoff must be filled in Sch CFL which alone will be considered for Schedule BFLA.  Direct entries in Schedule BFLA without any entry in Scheule CFL will not be entertained, thus leading to demand due to disallowance of claim for adjustment of brought forward loss. 

      Unabsorbed depreciation loss MUST be inluded in CFL against appropriate year or in case it relates to prior to AY 2003-03 period then it MUST be entered in the row relating to 2002-03.  Only if the unabsorbed Depreciation is entered in CFL, then it will be allowed in Sch BFLA calculation. 

      In Sch BFLA, enter all adjustments correctly.  Do not leave blank as system will not allow adjustments of brought forward loss unless claimed in Sch BFLA.

10.  Capital Gain is not correctly calculated :  Start from full value of consideration in Capital Gain Schedule.  DO NOT ENTER ONLY FINAL VALUES.  Enter the correct breakup to arrive at STCG and LTCG values.   Do not leave blank any intermediate figures such as Full Value of Consideration etc. 

      Ensure that the value entered in Sch CG under LTCG Proviso (option under proviso to S. 112(1) is exercised) is also correctly entered in Sch SI under LTCG proviso (Section 22).  All Capital gain tax calculations are as per special rates given in Schedule SI.   In case this is not correctly entered then the calculations may differ.  In most cases taxpayers have entered capital gains in CG schedule at 20% tax rate, but in Schedule SI entered in code corresponding to 10% rate by mistake.  In such cases tax may be calculated at both these tax rates. 

       Verify that correct quarterly breakups for LTCG and STCG are provided in Sch CG and the total of the quarterly breakups match with the respective values in Sch SI (taxable income after adjusting Min Chargeable to Tax) after set off of all losses. 

      Ensure that the value entered in Sch CG and STCG 111A is also correctly entered in Sch SI under STCG 111A (Section 1A)  Enter correct breakup of STCG 111A and other than 111A in Sch CG. 

How Many times Rectification Request can be uploaded

Friends,   Only one Rectification request can be submitted at any time.  In case rectification request wrongly uploaded then it can be withdrawn with in 7 days.  Before processing of rectification request at CPC, next rectification request for the same PAN and Assessment Year can not be submitted. 

For more clarity regarding probable reasons and their rectifications are given as under :-

Rectification Manual

Rectification of Bank Account Number in Online Rectification u/s 154

Friends,  If you are going to change your Bank Account Number in online rectification request 154, attachment of a cancelled cheque is required.  Initially, when a assessee change Bank Account Number in  original data and generate rectification XML file, computer/system compare new bank account number with the bank account number submitted at the time of original, If it is found different from original, only PROVISIONALLY rectification request uploaded.   A response sheet will be displayed which has to be filled and a cancelled cheque attached and sent to CPC Bangalore.  Only upon receipt of this response sheet at CPC Bangalore will the Rectification Request be finally accepted and acknowledgement generated. 

Image of rectification return  provisionally uploaded due to Bank Account Correction

Difference between Revised/Correction and Rectification of Income Tax Return

Friends,  there are some major differences between Revised Income Tax Return or rectification in Income Tax Return.   Revised or correction return can be submitted before processing of return or before Intimation u/s 143 etc.   Where as rectification can be done after processing of return or after Intimation received u/s 143.  Out of many some differences are explained as under:-

• Revised/Correction return can be submitted before processing of Income Tax Return.
• Rectification can be submitted after processing of Income Tax Return.
• Both are required XML File.
• Rectification return requires Communication reference number of Latest CPC order.
• Revised/Correction return requires Last Acknowledgement Number of original return.
• CPC order date is also required for Rectification Return. 
• Aggregate Income Tax Liability Amount is required for Rectification Return which is also  available in Intimation letter u/s 143.
• Total Tax Credit Allowed Amount is also required for Rectification Return which is also  available in Intimation letter u/s 143.
• Alphabet Character is available in CPC reference number  whereas Acknowledgement number is generated with Numeric Characters.

Picture of Rectification Return

Submit online Rectification Request of Income Tax Return after intimation issued u/s 143(i)

Friends,

Online Rectification Request  under section 154

 Now , two more important link is available under My Account  after login for e-filling which are given below.  This type of rectification can be done only when Intimation u/s 143(i) has been received by assessee.

1) Rectification 

         a) Rectification Upload

         b) Rectification Status

2) Response Sheet for CPC Refund Failure Status.

                                          Picture view of New Links Under My Account Menu

In simple word, after processing of your online return at CPC , rectification can be submitted online and it's status can be checked.  XML file will be generated for rectification return prepared by software and specific corrections can be done in this procedure.

To know complete procedure Regarding Online Rectification  Request under section 154 (Cilck Here)