Beginning 1st April, 2008, Government of India has made it mandatory for corporate Assessee to make e-payment of direct taxes. Besides corporate, assessees subject to Tax Audit would also be required to make e-payment of direct taxes.

These assessees would be required to make electronic payment through internet banking facility offered by any authorized bank. Alternatively, such payment can be made using credit or debit cards for making e-payment. As on date, about 22 banks are authorized to offer e-payment facility through Internet banking accounts.

Under the provisions of section 147 of the Income-tax act, 1961, Income Tax Officer can reopen the case to tax the income that escaped taxation. The essential prerequisite of this re-opening is that Assessee should have omitted to disclose some primary facts.

No.402/92/2006-MC (10 of 2008)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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New Delhi dated the 12th February 2008

PRESS RELEASE

Mostly when you claim a deduction and the same is denied by Assessing Officer, Assessing Officer seeks to levy penalty for concealment. In one such case of Eicon International (P.) Ltd, Assessee filed return claiming deduction u/s 80HHB.

Assessing Office in absence of requisite evidence regarding various conditions to be met for a allowing deduction under section 80HHB, found claim to be not bona fide and accordingly, while making assessment order, also levied a penalty under section 271(1)(c).

You claim a deduction in the return and if the same is not allowed by Income Tax Officer, by default he proceeds to initiate proceedings for concealment of income. However, as recently ruled by High Court of Delhi in the case of Commissioner of Income-tax, Delhi-V vs Regency Express Builders (P.) Ltd, in cases where two views on an issue are possible, no proceedings of concealment need be initiated.

Income Tax department, vide their Instruction No. 11/2007, Dated 18.12.2007 has instructed that no demand would be raised in cases where default/demand is for amount of Rs. 100 or less.

Under the present system, processing of electronically filed e-TDS returns is to be done by the RRCs. After initiation of bulk processing by RCCs, the TDS Assessing Officer assesses the mismatch report and issues show-cause notices for follow-up action. In large number of cases, the demand is for amounts lesser than Rs 100/-.

In these turbulent times with stock markets witnessing some of the biggest single day, single week losses, and the apparent root cause of US recession still looming large, retail investors have been shying away from the markets.

This is year end time and all employees are supposed to submit income tax savings estimate to their employers so as to get deduction for all permissible savings and plan income tax liability. Failure on part of an employee to submit details of his savings can lead to employer deducting more income tax

As a part of series of providing various calculators to our visitors, today, we are attaching small utility which can be used by an employee to submit his estimate to his employer to enable employer deduct income tax at source.

Most investors tend to get confused while choosing dividend or growth option when applying for a mutual fund. The real choice should not be so difficult to make.

Ask yourself a simple question, do you need the recurring income for yourself or the income so received in the form of dividend has to be reinvested again. If you have some other regular source of income then by choosing dividend option you are again creating a fund, which would be small in size unless augmented by other income, and won’t be of size that could be invested again in good channel of investment.