NEW IT RETURNS UNDER INCOME TAX ACT AND TAX AUDIT. Compiled by CA Avinash Rawane (Downloaded from

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1 NEW IT RETURNS UNDER INCOME TAX ACT AND TAX AUDIT 1

2 Endeavor of CPC to promote voluntary compliance; to educate tax payers and citizens about tax laws; to provide information, forms and other assistance at the facilitation counters and also on website to continuously improve service delivery to induct state-of-the-art and green technology with a user friendly interface & and to inculcate a healthy tax culture where the taxpayers and the tax collectors discharge their obligations with a sense of responsibility towards nation building 2

3 Requirements by the Department to be truthful and prompt in meeting all legal obligations; to pay taxes in time; to obtain PAN and quote it in all documents and correspondence to obtain TAN for every unit and quote it in all documents and correspondence to quote correct tax payment/deduction particulars in tax returns to verify credits in tax credit statements to file complete & correct returns, within the due dates and in appropriate tax jurisdictions to quote correctly Bank Account Number, MICR Code and other Bank details in the returns of income to intimate change of address to the tax authorities concerned to intimate any change in PAN particulars to designated agency & and to quote PAN of all deductees in the TDS Statements 3

4 Services available for various users in e-filing 4

5 Record Numbers of Returns Filed Income Tax Department has received a record number of 2.97 crores e-returns in the F.Y Department is planning to develop alternative solution for sending ITR-V then the process of sending ITR-V to Bangalore will be discontinued. From Assessment Year , ALL PARTNERSHIP FIRMS to compulsorily e-file; 5

6 Returns Filed Summary 6

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9 Who are required to e-file for AY Individual whose total income is more than Rs. 5 Lakhs; All Tax Audit cases u/s 44AB, 92E or 115JB of the IT Act, 1961; All Corporate Assessees & Partnership Firms; Trust having Income exceeding Rs 5Lakhs or whose Audit Report is filed; Persons claiming relief under Section 90, 90A or 91 of the Act; 9

10 WHICH ITR SHOULD BE SELECTED 10

11 DUE DATES FOR ITR 11

12 DUE DATES Individuals, Firms, Partners not liable for audit Companies, Assessee covered under Audit, Working partners of the firms covered for audit and Individuals covered for audit Assessee required to submit Report under Section 92E 12

13 PROVISIONS OF THE IT ACT Section 139(4) Belated Return To be filed before the end of one year from the relevant AY or completion of assessment whichever is earlier; Loss cannot be carried forward Section 139(5) Revised Return To be filed before the end of one year from the relevant AY or completion of assessment whichever is earlier; Belated Return cannot be revised 13

14 PROVISIONS OF THE IT ACT Section 139(9) Defective Return Return treated as defective if All annexures/ columns in each head of income, computation of GTI and TI are not filled SA Tax u/s 140A has not been paid on or before the date of furnishing return Return signed by an unauthorised person; etc. Remedies Opportunity by AO to rectify the defect within 15 days Beyond 15 days, AO may condone the delay 14

15 DEFECTIVE RETURNS UNDER E- FILING ITR 4S has been filled but Code mentioned under Nature of Business is 601 or 602 or 603 or 604 which are incorrect codes. All ITR forms No Income details or tax computation has been provided in ITR but details regarding taxes paid have been filled and filed ITR 4 & 5 In audit information 44AB flag is Y but Part A P&L and or Part A BS not filled 15

16 CONSEQUENCES OF LATE FILING Penalty of Rs. 5000/- under Section 271F; Penal 1% per month under Section 234A; Losses cannot be carried forward; Deductions under Section 10A, 10B, 80-IA, 80-IB etc. not allowed. 16

17 Mandatory Filing of ITR Any assessee having total income of Rs 5 Lakhs and above; Individual/ HUF, being resident, having assets located outside India from AY An assessee required to furnish a report of audit specified under sections 10(23C)(iv), 10(23C)(v),10(23C)(vi),10(23C)(via), 10A, 12A(1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E or 115JB of the Act, An assessee required to give a notice under Section 11(2)(a) to the Assessing Officer from AY All companies. Firm, AOP, BOI, Artificial Juridical Person, Co-operative Society and Local Authority required to file ITR 5 from AY An assessee required to furnish return u/s 139 (4B) in ITR 7. A resident who has signing authority in any account located outside India. A person who claims relief under section 90 or 90A or deduction under section

18 Who are required to file for AY (e-file not MANDATORY) Charitable Organisation under Section 139(4A); Political Parties Section 139(4B); Research Associations, News Agencies, Association, Funds, Institutions; Trade Unions, Infra Funds, Hospitals, Medical Institutions etc Section 139(4C); Universities/College/Institutions Section 139(4D) 18

19 WHICH ITR TO BE FILED FOR AY (INDIVIDUALS/HUF) ITR-1 (with or without digital signature) Salary Income House Property Income (1 House No B/f Loss) Other Income (except horse race & lottery) ITR-2 (with or without digital signature) Salary Income House Property Income; Capital Gains; Other Income Assets or SA located out of India, Claimed relief or FI >

20 WHICH ITR TO BE FILED FOR AY (INDIVIDUALS/HUF) ITR-3 (with or without digital signature) Salary Income; House Property; Capital Gains; Share of Profit from Firm/AOP etc Other Income ITR-4 (Mandatory digital signature in case of TA u/s 44AB) Salary Income; House Property; Capital Gains; Profits & Gains of Business Other Income 20

21 WHICH ITR TO BE FILED FOR AY (INDIVIDUALS/HUF) 21

22 WHICH ITR TO BE FILED FOR AY ITR-5 (Mandatory digital signature in case of TA u/s 44AB) To be filed by Partnership Firm, LLP, AOP & Local Authority, irrespective of Income ITR-6 (To be filed only digital with signature) To be filed by Companies 22

23 Amendments for ITR-7 (For Trust) Income exceeding `5 Lacs Person required to file ITR u/s 139(4A), 139(4B), 139(4C), 139(4D) ITR-7 ITR-7 (Other than above) Compulsory E-Filing with or without Digital Signature Can File in paper Form 23

24 Modification in New Returns Two Ids can now be given in the Return; Mobile Number of the Assessee made mandatory and can be upto 2; Drop Down Box provided for Section wise Return; 24

25 Modification in New Returns Details of Income earned outside India to be provided in the Return for RI; Details of Assets held in foreign country, taxes paid and the relief claimed to be provided in the Return (Applicable only for RI) Details of FI in any entity, Trusteeship in any country, Bank Account Details & Immovable property, signing authorities in any foreign country; 25

26 Certain New Circulars on e-filing Details of Foreign Assets, Income etc. in foreign countries to be the part of ROI from AY in case of Resident & Ordinarily Resident Assessee (Notification S.O. 111(E) dt ); Other Conditions Not Applicable if assets is located outside India or signatory located outside India; and Has claimed relief under Section 90 or 90A or deduction of tax under Section 91; and Has Income not chargeable to tax exceeding `5000 Compulsory e-filing with our without digital signature in aforesaid cases. 26

27 New Look of Website 27

28 Additional Services in New Website Tax Credit Mismatch Report Prepare Online ITR-1 and ITR4-S and Upload Can get prefilled XML with certain details XML & ITR of earlier years can be downloaded Dashboard Option to have glance & status your filed Returns 28

29 NEW FEATURES OF WEBSITE Introduction of various categories for registration Individual & HUF, Other than I & HUF, CA, ITD Employees, Helpdesk 29

30 Changes to be made in Settings Amendment in Profile Settings required PAN of the Signing Authority is mandatory Up-dation of Contact Details 30

31 CIRCULAR DATED 19/06/2014 It has been observed that in many cases taxpayers are not able to reset their password since the communication from the Department may be sent to their registered or Mobile which may be different from the taxpayer s personal or mobile. It is requested that all the e-filing users may immediately update and authenticate their correct contact details so that the communication can be sent to the valid Mobile number and ID; VALIDITY OF THE PIN IS 24 HOURS 31

32 CIRCULAR DATED 19/06/2014 Income-Tax Department uses the registered contact details (Mobile number & ID) for all Communications related to e-filing. It is mandatory that all tax payers must have a valid contact details registered in e-filing portal. It is noticed that many registered users are not having authenticated contact details in e-filing or may have provided details of other persons for convenience. This prevents the Department from interacting directly with taxpayers on their personal and Mobile. 32

33 FOR NEW USERS Provide the correct Mobile Number and ID during the Registration in the e-filing portal, Activation link would be sent to the registered ID and A One Time Password (OTP also called PIN) is sent to the registered Mobile Number. User needs to Click on the Link provided in the and enter the OTP received in the mobile number for Successful activation 33

34 FOR EXISTING USERS After the user log in Requested to update the current PERSONAL Mobile number and PERSONAL ID. Updated contact particulars are registered with the Department or confirm that the Mobile number and ID already registered is their valid personal contacts. Upon submitting the details, Department would immediately send OTPs (PIN1 & PIN2) to new mobile number and ID. PIN 1 AND PIN 2should be entered by them in the respective input fields to authenticate that the ID and mobile are correct. Upon successful validation the Mobile number 34

35 Updation of Contact Details 35

36 PIN MANDATORY 36

37 PIN DETAILS RESENT AFTER 2 MIN 37

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39 BROWSER SETTINGS 39

40 System Configuration: OPERATING SYSTEM - 40

41 ENABLING JAVA SCRIPT JRE 1.7 update 13 and above (32 bit) is required to run applets for Digital Signatures and offline forms to work. You may download this at 41

42 CANNOT READ XML FILE 42

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44 CANNOT READ XML FILE 44

45 NEW JAVA UTILITY Similar to E-Audit Forms Better than excel utility Currently, available for ITR-1, ITR-2, ITR-3, ITR-4 and ITR-4S Prefill facility available Excel utility currently available only for ITR-2 Quick e-file ITR-1 and ITR-4S online a welcome move Software requirements need to be fulfilled File saving Drawback Print option Not available 45

46 UTILITIES AVAILABLE ON ITD 46

47 ZIP FILE- ALL FILES TO BE DOWNLOADED 47

48 HOW TO USE NEW JAVA UTILITIES 48

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50 VARIOUS OPTIONS AVAILABLE 50

51 OPTION OF DROP DOWN BOXES 51

52 PREFILL OPTION 52

53 FEATURES OF NEW UTILITIES 53

54 SELECTION OF OTHER AUDITS 54

55 OTHER CHANGES IN ITR FORMS Drop Box given for Nature of Business to be selected; In Other Operating Revenues- Details to be keyed in manually; Other Expenses (Specific Nature and amount to be given); Bad Debts Claimed (PAN Number to be given if claim above Rs. 1Lakh is claimed); 55

56 CERTAIN RESTRICTIONS NPn 56

57 MANDATORY INFORMATION 57

58 SCHEDULE-OI 58

59 DRAFT COMPUTATION AVAILABLE FOR VERIFICATION OF INCOME 59

60 SUMARISED CAPITAL GAINS 60

61 COMPUTED INFORMATIONS 61

62 COMPUTED TAX LIABILITY BASED ON INFORMATION SUBMITTED 62

63 COMPUTED TDS 63

64 IFSC CODE MANDATORY 64

65 FEATURES OF NEW UTILITIES 65

66 SALARY INCOME 66

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70 MANDATORY DISALLOWANCE 70

71 Additional Information in Returns Information about Audit is any other Section to be informed; Balance Sheet Format made in line with Revised Schedule VI with certain Additional Information; Deposits to/from Related Parties Section 2(22)(e); Break up of Investments in Property, Shares etc. required; Trade Payables Outstanding Periodicity introduced; Other Expenses Full Details to be given in the Residual Category 71

72 Break Ups required in certain cases. Share Application Money Period of Outstanding; Long Term Advances Purpose Break ups; Sum advanced to the related parties; Payments made to Non residents for certain expenses like Salary, Fees, Royalty, Commission & Interest; Bad Debts exceeding 1 Lakh Claimed requires PAN Details 72

73 DEPRECIATION SCHEDULES 73

74 MAJOR CHANGES IN E-FORMS (CAPITAL GAINS) Long Term Capital gains 1. From sale of land or building/ both 2. From slump sale 3. Sale of bonds/ debentures where indexation is not allowed 4. Securities etc. 10% without indexation benefit and GDRs of Indian companies referred in sec 115ACA 5. Sale of shares/ debentures of Indian company by non-resident (Non-FII) 6. Non resident selling 1. Unlisted securities 2. Bonds/ GDRs u/s 115AC 3. Securities by FIIs u/s 115AD 7. Sale of foreign asset by non-resident Indian (if opted for Ch. XII-A) 8. Any other long term capital gains 74

75 MAJOR CHANGES IN E-FORMS (CAPITAL GAINS) Particulars of capital gains required to be furnished (as per ITR-4): A. Short Term Capital Gains 1. From sale of land or building/ both 2. From slump sale 3. STT paid assets 4. Sale of shares/ debentures of Indian company by nonresident (Non-FII) 5. Sale of securities by non-resident FIIs (Sec 115AD) 6. All other STCG not covered above 75

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77 SLUMP SALE 77

78 SEPARATE INFORMATION FOR NR 78

79 SUMARISED VIEWING 79

80 SEPARATE SCHEDULE FOR 80G CLAIM 80

81 MODIFIED SECTION 80 DEDUCTIONS 81

82 TAX RELIEF DETAILS 82

83 TAX RELIEF DETAILS 83

84 CHANGES IN ITRS FOR AY Unclaimed TDS of earlier year can be claimed; DTA Relief from Cyprus to be reported separately in ITR; Refund to be credited to the Bank Account of Assessee. Issue of Refund by cheque discontinues; CIN/DIN Number of Company/LLP to be mentioned in ITR-6 made mandatory for Domestic Companies; Schedule BBS introduced to report for the consideration paid for buy-back of own securities by unlisted companies; 84

85 CHANGES IN ITRS FOR AY Liability of MAT for Electricity, Companies to be reported; Insurance and Banking Compulsory furnishing of PAN for Bad debts claimed in ITR-4; Return modified to introduce Section 92CD for APA; Detailed information of CG reporting in Return; Reporting of detail information for claims u/s 36 & 37; Intra head adjustment of Loss to be provided in detail; Reporting of Income head at concessional rates reporting enhanced; 85

86 CHANGES IN ITRS FOR AY Date of furnishing of Audit Report made mandatory for TP/APA cases in ITR-4; Separate disclosure of sums paid to NR extended to ITR- 4; Option for Section 87A rebate enabled in ITR; Private discretionary Trust to file ITR-5; ITR-7 to mention Reg. No., RA and section for claiming exemption. Trust to be file application online for accumulation of unutilised portion of income; New Schedule VC inserted in ITR-7 for reporting of various voluntary donations received by the Trust. 86

87 Additional Information in Returns 87

88 Statement of Affairs Mandatory Reporting of Foreign Income/Assets 88

89 Additional Sheets Introduced Sheet UD Unabsorbed Depreciation claim Sheet MATC Set off of B/F MAT Credit Sheeet DDT_TDS_TCS Adjustment of Dividend Received against Declared 89

90 Additional Sheets Introduced Sheet TR_FA Adjustment of Tax Paid in Foreign Country Sheet FA Details of Assets Held in Foreign Country & Financial Interest 90

91 RECONCILIATION OF TDS 91

92 WARNING TO CORRECT VALIDATION ERRORS 92

93 DIRECT SUBMISSION OPTION 93

94 NOTIFICATION NO 210/2007 DATED e-return Intermediary it must be a public sector company or; a firm of Chartered Accountants or Advocates, if it has been allotted a permanent account number; a Chartered Accountant or an Advocate, if he has been allotted a permanent account number; or a Drawing or Disbursing Officer (DDO) of a Government Department; Digital Signature of E-Intermediary mandatory; Have in place security procedure to the satisfaction of e- RA to ensure that confidentiality of the assessees' information is properly secured 94

95 NOTIFICATION NO 210/2007 DATED have necessary archival, retrieval and, security policy for the e-returns which would be filed through him, as decided by e-return Administrator from time to time; Principal Officer, must not have been convicted for any professional misconduct, fraud, embezzlement or any criminal offence by any court of law or by any professional body, as the case may be; 95

96 Authorisation of e-return Intermediary Application to be made online on Registrar to verify the application; Registrar to carry due diligence; ERIN to be issued; Validity Period is 2 years and may be extended for further period of 2 years; Confidentiality to be maintained. 96

97 Procedure to be followed An ERI to receive the paper return of income, duly verified by the eligible person or shall prepare the return of income on the basis of the documents furnished by the eligible person, as the case may be ; ERI shall upload the completed return of income, after validation of permanent account number, in the format specified by the e-return Administrator, using his e-return Intermediary Identification Number (ERIIN). The e-returns shall be processed on priority basis. The refund, if any, due to the assessee shall be either credited by the assessing officer directly to his bank account, using the Electronic Clearing Services of the Reserve Bank of India or be directly sent to the assessee 97

98 Reports mandated by CA for e-filing Tax Audit Reports Form 3CEB (Transfer Pricing Report for International as well as Domestic Transactions) Uploaded by CA & Approved by Assessee Form 29B (Report u/s 115JB) Any other form as may be specified (Specified Form 10B for Trust) 98

99 Process for ITR Filing for Audit Cases Register as CA user Assessee to add Tax Auditor & Consultant CA to upload AR xml with Digital Signature Assessee to upload ITR & confirm TAR 99

100 Registration The pre-requisites for registering as Chartered Accountant in e-filing are 1. You should be a practicing Chartered Accountant (registered with Institute of Chartered Accountants of India, ICAI, with a valid Membership Number) 2. You should have a valid Permanent Account Number (PAN) and Digital Signature Certificate. 100

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107 Services After you login, the blue navigation bar on top will display additional menu options. The Dashboard option will provide the current notifications and also the details of your previous e-filed returns. My Account option will provide services such as View Forms and View Client List. The e-file and Downloads options, will allow you to file your return and download Forms, respectively. The Profile Settings option will allow you to update your profile, details like digital signature upload, secret question, contact details, change password, etc. The Worklist option will provide list of items, which may be pending for action at your end. The Helpdesk option will allow you to raise a ticket, if you face any issues while e-filing 107 and check status of the Compiled ticket, ifby raised. CA Avinash Rawane

108 Procedure to Add CA as Auditor 108

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111 What CA can do Authorize and verify various statutory Income Tax Forms. Upload all Forms other than ITR; Download Income Tax forms and upload XML; View e-filed forms under his ID and download its STATUS; Can opt for higher security by Login with details and digital signature. View the Outstanding Demand 111

112 Submission of Forms (other than ITR) Being a registered user on the portal, you can file Forms (Other than ITR) electronically. The pre-requisites for e-filing are 1. Assessee and the CA should be registered in e-filing 2. Assessee should have added the CA for the desired Form and Assessment Year There are two ways to file Forms electronically. 112

113 Steps for submission of Offline Forms (other than ITR) 1. GO TO 'Downloads' section and select applicable Form (other than ITR) of the desired Assessment Year OR Login to e-filing application and GO TO 'Downloads -- >'Download Forms' and select applicable Income Tax Form of the desired Assessment Year. 2. Download and fill the utility of the Form (other than ITR) and validate. 3. Fill the utility and Validate. 4. Generate an XML file and save in desired path/destination in your desktop/system. 5. LOGIN to e-filing application and GO TO --> e-file --> Upload Form 6. Enter the Assessee s PAN, CA s PAN; select the Form Name (other than ITR) and the Assessment Year. 7. Browse and Select the XML file 8. Upload Digital Signature Certificate. 9. Click 'SUBMIT'. 10. On successful upload, the Form (other than ITR) is sent to Assessee's workflow for acceptance. 11. The Assessee should LOGIN to e-filing application, GO TO Worklist and accept/reject the Form (other than ITR). 12. A) On Approval, the Form is successfully submitted with e-filing application. No further action is required. B) If Rejected, the Tax Professional can file the Form (other than ITR) again and follow 113 the same process as mentioned Compiled in by 10, CA 11 Avinash & 12a. Rawane

114 Steps for submission of Online Forms (other than ITR) 1. GO TO 'e-file' menu post Login and "Submit Form Online 2. Enter the Assessee PAN, CAs PAN, select the Form Name (other than ITR) and the Assessment Year. 3. Upload Digital Signature Certificate. 4. Click 'SUBMIT'. 5. Enter the data and Submit 6. On successful submission, the Form (other than ITR) is sent to Assessee's workflow for acceptance. 7. The Assessee should LOGIN to e-filing application, GO TO Worklist and accept/reject the Form (other than ITR). 8. a) On approval, the Form is successfully submitted with e-filing application. No further action is required. b)if rejected, the Tax Professional can file the Income Tax Form (other than ITR) again and follow the same process as mentioned above. 114

115 Verification of Forms (other than ITR) There are some statutory Forms like Form 62, Form 63, Form 63A and Form 64 which needs to be initiated by Assessee and reviewed by CA. On finding the Forms in order, CA will approve and an acknowledgment number is generated. Steps to verify submitted Forms (other than ITR) of Assessee 1. The CA should LOGIN to e-filing application, GO TO Worklist and verify the Income Tax Form (other than ITR) submitted by the Assessee. 2. Upload Digital Signature Certificate. 3. Click 'SUBMIT'. 4. The Form is successfully submitted with e-filing application. No further action is required. 115

116 My Account View Forms View Forms displays the list of Forms uploaded by CA for an assessee. The CA will type the PAN of the assessee and clicks SUBMIT button 116

117 Steps for Uploading Utility of Audit Forms to be prepared by CA and uploaded; Digital Signature to be affixed; Form forwarded to the Assessee s ID for acceptance; On Rejection, TP can file the Form again. On Approval no further action is required and audit report is submitted; Assessee to Login on website, go to Work List and accept/reject the Form; 117

118 Check List of the Documents & Software required Java Runtime Version 7 update 6 or above Annual Accounts with relevant reports Other documents 118

119 Steps Thereafter User-ID & Password sent to CA user in activation link; CA to activate user ID by providing user ID & password; Change the temporary password provided immediately; CA can now file AR Information mail sent to CA informing his selection as Auditor by Assessee; Assessee to Add CA for uploading AR; 119

120 Information Mail from ITD 120

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124 Confirmation Mail from ITD 124

125 Status of the Audit Report Filed 125

126 Mail Confirmation of Acceptance of AR 126

127 Non Acceptance of AR Filed 127

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134 Certain Mandatory Details in Form 3CD Business Code To match with ITR Returns; Selection of Details required to be compulsory from the Drop Down Box; Details of PAN to be given for payments made to persons specified in Section 40(A)(2)(b); No Facility to provide Disclaimer Notes; Full Details to be given for Fixed Assets including date of purchase/sale to match with ITR; Section 43B payments Date of subsequent payment not required to be given; 134

135 Certain Mandatory Details in Form 3CD Details can be filled and saved and can be reworked Membership Number of Report Signing CA to be given Category of the Assessee to be given, other details NA gets freezed Each information to be given in YES/NO/NA from drop down box Chapter VIA Deductions Allowable details to be given Section wise Quantitative Details and Ratio Analysis 135

136 Certain Mandatory Details in Form 3CD Details of Disallowance Amount of Expenses only to be given in Clause 17 Figures for Salary & Remuneration to Partners to be given for provided and allowable Computation of Section 41 to be part of TA Method of Accounting Followed for Excise/VAT to be given including treatment of outstanding Full Details of Loan Taken & Given details to be given 136

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144 A Sign of Relief for this Year Revised Audit Report format Not Applicable for the current financial year 144

145 Attachments Generated XML of AR Maximum Size Allowed is 50MB Balance Sheet in PDF or ZIP Other Attachments Profit & Loss in PDF or ZIP format 145

146 Avoid Last Days 146

147 Details of Last Minutes Filing 147

148 SUMMARY IN A NUT SHELL 148

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150 Some Useful Tips Returns generated from private software should not be considered as blindly accurate and final; Validation Utilities provided by ITD is more or less control oriented. Final Computation needs to be physically verified before filing; Do not try to over-ride the utilities provided to suit the same as per the requirements since these are control based 150

151 Some Useful Tips Returns are generally prepared by Staff and uploaded, ensure its correctness before uploading; Ensure sufficient and accurate back up is available for future requirements.. Not to depend much on the system, better to have one hard copy; Delete the workings created from time to time to ensure that the latest figures are only available which were used for the returns filing. 151

152 Any Further Help Required Call Centre of Income Tax Department available/helpdesk also available send incometaxindia.gov.in Tools for Help Available on the ITD Website 152

153 New Call Centre Numbers 153

154 E-Assessments New Utilities Compute Tax Liability based on the information filled.. Acts as self assessment, if verified properly; Days will come in the near future, where we will have E- assessments; Reports of un-reconciled transactions in the Form 26AS submissions and Returns details submitted will only be the source of scrutiny; 154

155 VARIOUS PENALTIES UNDER IT ACT Section 43. Penalty for damage to computer, computer system, etc.- If any person without permission of the owner or any other person who is in charge of a computer, computer system or computer network,- accesses or secures access to such computer, computer system or computer network downloads, copies or extracts any data, computer data base information from such computer, computer system or computer network including information or data held or stored in any removable storage medium, Introduces or causes to be introduced any computer contaminant or computer virus into any computer, computer system or computer network; damages or causes to be damaged and computer, computer system or computer network, data, computer database or any other programmes residing in such computer, computer system or computer network; disrupts or causes disruption of any computer, computer system or computer network; denies or causes the denial of access to any person authorised to access any computer, computer system or computer network by any means; provides any assistance to any person to facilitate access to a computer, computer system or computer network in contravention of the provisions of this Act, rules or regulations made thereunder; charges the services availed of by a person to the account of another person by tampering with or manipulating any computer, computer system or compute network he shall be liable to pay damages by way of compensation not exceeding one crore rupees to the person so affected. 155

156 VARIOUS PENALTIES UNDER IT ACT Explanation.-For the purposes of this section.- (i) computer contaminant means any set of computer instructions that are designed (a) to modify, destroy, record, transmit date or programme residing within a computer, computer system or computer network; or (b) by any means to usurp the normal operation of the computer, compute system, or computer network; (ii) computer database means a representation of information, knowledge, facts, concepts or instructions in text, image, audio, video that are being prepared or have been prepare in a formalised manner or have been produced by a computer, computer system or computer network and are intended for use in a computer, computer system or computer network; (iii) computer virus means any computer instruction, information, data or programme that destroys, damages, degrades adversely affects the performance of a computer resources or attaches itself to another itself to another computer resources and operates when a programme, date or instruction is executed or some other even takes place in that computer resource; (iv) damage means to destroy, alter, delete, add, modify or re-arrange any computer resource by any means 156

157 VARIOUS PENALTIES UNDER IT ACT Sec 45. Residuary penalty.- Whoever contravenes any rules or regulations made under this Act, for the contravention of which no penalty has been separately provided, shall be liable to pay a compensation not exceeding twenty-five thousand rupees to the person affected by such contravention or a penalty not exceeding twenty-five thousand rupees. 157

158 VARIOUS PENALTIES UNDER IT ACT 66 A Punishment for sending offensive messages through communication service, etc. ( Introduced vide ITAA 2008) Any person who sends, by means of a computer resource or a communication device, a) any information that is grossly offensive or has menacing character; or b) any information which he knows to be false, but for the purpose of causing annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred, or ill will, persistently makes by making use of such computer resource or a communication device, c) any electronic mail or electronic mail message for the purpose of causing annoyance or inconvenience or to deceive or to mislead the addressee or recipient about the or igin of such messages (Inserted vide ITAA 2008) shall be punishable with imprisonment for a term which may extend to two three years and with fine. Explanation: For the purposes of this section, terms "Electronic mail" and "Electronic Mail Message" means a message or information created or transmitted or received on a computer, computer system, computer resource or communication device including attachments in text, image, audio, video and any other electronic record, which may be transmitted with the message] 158

159 VARIOUS PENALTIES UNDER IT ACT 66C Punishment for identity theft. (Inserted Vide ITA 2008) Whoever, fraudulently or dishonestly make use of the electronic signature, password or any other unique identification feature of any other person, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to rupees one lakh.] 159

160 VARIOUS PENALTIES UNDER IT ACT Section 66D Punishment for cheating by personation by using computer resource (InsertedVide ITA 2008) Whoever, by means of any communication device or computer resource cheats by personation, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to one lakh rupees.] 160

161 VARIOUS PENALTIES UNDER IT ACT Section 66E Punishment for violation of privacy.(inserted Vide ITA 2008) Whoever, intentionally or knowingly captures, publishes or transmits the image of a private area of any person without his or her consent, under circumstances violating the privacy of that person, shall be punished with imprisonment which may extend to three years or with fine not exceeding two lakh rupees, or with both 161

162 Another Cause of Concern It s a Data Centre of all the information collected and information is cent percent reliable; CPC acts as a preserver of the Information. Data given by the Assessee shall be preserved for life time. 162

163 Department has noticed that incorrect information filing is resulting in delay of processing of Returns; 163

164 Forgiveness Applying computer technology is simply finding the right wrench to pound in the correct screw. A mistake in Tax Returns can be corrected by paying penalties and result in monetary loss but the non-correction of Mistakes made in Relationship in TIME will ruin your entire LIFE Correction of Both.. earlier the BETTER A MISTAKE should always be taken as a Mistake and not as MY Mistake or HIS Mistake as it leads to difference in the Hearts..Let us correct it in TIME 164

165 Doubts & Querries Any Questions Thank You 165 C.A. Avinash V. Rawani 165

166 Rawani and Company, Chartered Accountants B-206, Hinal Heritage, Patel Wadi, S.V.P.Road, Near Chamunda Circle, Borivali West, Mumbai avinash@carawani.com Website: The views stated in the material and also discussed are purely of the compiler for the discussions at the Study Circle and should not be used for any legal interpretation. Any decision to be taken by the user of this information is to be taken after studying the requisite provisions of the respective Act and specific applications to particular client. Neither the compiler nor the study circle shall be responsible for the same. f the said information is reproduced or published in the interest of the profession, would humbly request to inform to the Compiler about the same. 166