Saturday, 23 July 2016

Paperless PAN & TAN application process launched by CBDT- Get PAN & TAN within a day

On 22nd July, 2016, CBDT introduced PAN & TAN application process through which assessee can get Paperless Permanent Account Number (PAN) & Tax Deduction and Collection Account Number (TAN) within a day.
a)     Digital Signature Certificate(DSC) based application procedure has been introduced on the portals of PAN service providers M/s NSDL eGov and M/s UTIITSL for fast tracking allotment of PAN and TAN to company applicants with in a day.

b)    Similarly, a new Aadhaar e-Signature based application process for Individual PAN applicants has been made available on the portals of PAN service providers M/s NSDL eGov.

c)    The URL links for the above applications are available in ‘important links’ on the homepage of the departmental website ‘’.

d)      Introduction of Aadhaar based e-Signature through M/s NSDL eGov in PAN application not only ensures paperless hassle free PAN application process but also seeding of Aadhaar in PAN which will curb the problem of duplicate PAN to a great extent.

Saturday, 2 July 2016

Income Declaration Scheme, 2016 - Clarification By Income Tax Department

The Income Declaration Scheme, 2016 provides an opportunity to persons who have not paid full taxes in the past to come forward and declare the undisclosed income and pay tax, surcharge and penalty totaling in all 45% of such undisclosed income declared.

Further queries have been received from the public about various provisions of the Scheme. The Board has considered the same and the following clarifications are issued.-

Question No.1: If only part payment of the tax, surcharge and penalty payable on undisclosed income declared under  the  Scheme  is  made  before 30.11.2016, then whether the entire declaration fails as per section 187(3) of the Finance Act, 2016 or pro-rata declaration on which tax, surcharge and penalty has been paid remains valid?

Answer: In  case  of  part  payment,  the  entire  declaration  made  under  the Scheme shall be invalid. The declaration under the Scheme shall be valid only when the complete payment of tax, surcharge and penalty is made on or before 30.11.2016.

Question No.2: In case of amalgamation or in case of conversion of a company into LLP, if the amalgamated entity or LLP, as the case may be, wants to declare for the year prior to amalgamation/conversion, then whether a declaration is to be filed in the name of amalgamated entity/LLP or in the name of the amalgamating company or company existing prior to conversion into LLP?

Answer: Since the amalgamating company or the company prior to conversion into LLP is no more into existence and the assets/liabilities of such erstwhile entities  have  been  taken  over  by  the  amalgamated company/LLP, the declaration is to be made in the name of the amalgamated company or the LLP, as the case may be, for the year in which the amalgamation/conversion takes place.

Question No.3: Whether the Scheme is open only to residents or to non-residents also?

Answer: The Scheme is available to every person, whether resident or non-resident.

Question No.4: If undisclosed income relating to an assessment year prior to A.Y. 2016-17, say A.Y. 2001-02 is detected after the closure of the Scheme, then what shall be the treatment of undisclosed income so detected?

Answer: As per the provisions of section 197(c) of the Finance Act, 2016, such income of A.Y. 2001-02 shall be assessed in the year in which the notice under section 148 or 153A or 153C, as the case may be, of the Income-tax Act is issued by the Assessing Officer. Further, if such undisclosed income is detected in the form of investment in any asset then value of such asset shall be as if the asset has been acquired or made in the year in which the notice under section 148/153A/153C is issued and the value shall be determined in accordance with rule 3 of the Rules.

Question No.5: Whether a person on whom a search has been conducted in April, 2016 but notice under section 153A is not served upto 31.05.2016, is eligible to declare undisclosed income under the Scheme?

Answer: No, in such a case time for issuance of notice under section 153A has not expired. Hence the person is not eligible to avail the Scheme in respect of assessment years for which notice under section 153A can be issued.

Question No.6: As per Circular No.17 of 2016, question No.14, it is not mandatory to attach the valuation report. But Form-1 states “attach valuation report”. How to interpret?

Answer: It is necessary for the declarant to obtain the valuation report but it is not mandatory for him to attach the same with the declaration made in Form-1.   However,   the   jurisdictional   Pr.   Commissioner/Commissioner in order to ascertain the correctness of the value of the asset quoted in Form-1 may require the declarant to file the valuation report before issuing the acknowledgment  in  Form-2.  In such a circumstance, it will be necessary for the declarant to make the report available to the Pr. Commissioner/Commissioner.

Question No.7: Is it mandatory to furnish PAN in the Form of declaration?

Answer: Yes, PAN is the unique identifier for all direct tax purposes. This is also necessary in order to claim the benefits and immunities available under the Scheme.

Question No.8: If any proceeding is pending before the Settlement Commission, can a person be considered eligible for the Scheme?

Answer: No,  a  person  shall  not  be  eligible  for  the  Scheme  in respect  of assessment years for which proceeding is pending with Settlement Commission.

Question No.9: Land is acquired by the assessee in year 2001 from assessed income and is regularly disclosed in return of income. Subsequently in the year  2014,  a  building  is  constructed  on  the  said  land  and  the construction cost is not disclosed by the assessee. What shall be the fair market value of such building for the purposes of the Scheme?

Answer: Fair  market  value  of  land  and  building  in  such  a  case  shall  be computed in accordance with Rule 3(2) by allowing proportionate deduction in respect of asset acquired from assessed income.

Question No.10: Whether cases  where  summons  under  section  131(1A)  have  been issued by the Department or letter under the Non-filer Monitoring System (NMS) or under section 133(6) are issued are eligible for the Scheme?

Answer: Cases where summons under section 131(1A) have been issued by the department or letters for enquiry under NMS or under section 133(6) are issued but no notice under section 142 or 143(2) or 148 or 153A or 153C [as specified in section 196(e)] of the Finance Act, 2016 has been issued are eligible for the Scheme.

Question No.11: If notices under section 142, 143(2) or 148 have been issued after 31.05.2016 and assessee makes declaration under the Scheme then what shall be the fate of these notices?

Answer: As clarified vide Explanatory Circular No. 17 dated 20.5.2016 , a person shall not be eligible for the Scheme in respect of the assessment year for which a notice under section 142, 143(2) or 148 has been received by him on or before 31.5.2016. In a case where notice has been received after the said date, the assessee shall be eligible to make a declaration under the Scheme for the said assessment year. Such declaration shall be valid if it has not been made by suppression of facts or misrepresentation and the amount payable under the Scheme has been duly paid within the specified time. On furnishing by the declarant the certificate issued by the Pr. Commissioner/Commissioner in Form-4 to the Assessing Officer, the proceedings initiated vide notice under section 142, 143(2) or 148 shall be deemed to have been closed.

FAQs on Delhi Shop and Establishment Act, 1954 and Exemptions

FAQ 1: What is the area where Delhi Shops and Establishments Act 1954 is applicable?
This Act is applicable to all Shops and Establishments in the whole of the National Capital Territory of Delhi.

FAQ 2:  What is the object of the Delhi Shops & Establishments Act?
The object of Delhi Shops and Establishments Act, 1954, is to give some minimum benefits and relief to the vast unorganized sector of employees, employed in Shops and Establishments. Industrial Dispute Act 1947, and Delhi Shops & Establishments. Act, 1954 are supplemental to each other.

FAQ 3: What is the set up for enforcement of this Act?
The Act is enforced through the Chief Inspector of Shops (CIS) and various inspectors under the Act, who are posted in nine districts of the capital who function under the supervision and control of Dy./ Asstt. Labour Commissioners of the concerned district. Chief Inspector functions under the supervision of Dy. Labour Commissioners (CIS) who in turn functions under the supervision of LC.

FAQ 4: Whether Registration is mandatory under the Act?
Yes, Registration is mandatory under the Act.

FAQ 5: What are the opening and closing hours of Shops and Establishments in Delhi?
No Shops or Establishment on any day, can be opened earlier than such hour or closed later than such hour, as may be fixed by the Government by general or special order is this behalf (S.15).

FAQ 6: What are the rest and closed day?
Every Shops and Establishments shall remain closed for one day in a week.

FAQ 7: Could any Shop or Establishment be opened on a rest or closed day?
Yes, by giving a 24 hours advance notice to the Chief Inspector. (S.16 (3) (ii))

FAQ 8: What are the working hours for employees of shops or establishments?
For not more than nine hours on any day or 48 hours in any week. (Section 8 )

FAQ 9: What is the period or interval for rest and meals?
No period of continuous work shall exceed five hours, which is to be followed by an interval for rest and meals of at least half an hour for an adult person. (Section .10)

FAQ 10: What are the hours of work of young persons employed in Shops and Establishments?
Not for more than 6 hours a day and not to be employed continuously for more than 3 ½ hours without an interval of at least half an hour.

FAQ 11: What are the provisions regarding exemptions under this Act ?
Section 4 of the Act provides for grant of exemptions from certain provisions of the Act. (e.g. Section 14, 15 & 16) with the approval of Lt. Governer subject to conditions as may be prescribed. (Application Form for Exemption)

FAQ 12: What are the records and registers etc to be maintained by every Shops or Establishments?
The occupier of every Shops or Establishments shall for the purpose of this Act maintain such other records and registers and display such other notices as may be prescribed. (Section 33)

FAQ 13: What are the legal provisions regarding the issuance of appointment letters?
The employer shall furnish every employee with a letter of appointment which shall contain particulars such as (a) name of the employer (b) name and address of the establishment (c) the name, father's name and age of the employee (d) Hours of work (e) date of appointment.

FAQ 14: What are the time and conditions for payment of wages to employers?
Every employer or his agent or the manager of any establishment shall fix periods of wages payable to the employees, which shall not exceed one month. The wages of a wage period must be paid before the expiry of seventh day of the last day of the wage period.

FAQ 15: What are the different types of leave available to an employee under the Act?
Every person employed in an establishment shall be entitled
a)  to 15 days of privilege leave for one year of service, which can be accumulated to 45 days.
b)  To 12 days of sickness or casual in an year. (Section.22)

FAQ 16: Whether children are permitted to work in Shops or Establishments?
No, children of 12 years and below are prohibited to work in shops under (Sec. 12)

FAQ 17: Whether double employment is permissible under the Act?
Double employment is prohibited under Section 9 of the act.

FAQ 18: Can a women employee be required to work during night shift?
No woman or a young person can be required to work, whether as an employee otherwise in any establishment between 9 P.M. to 7 A.M during summer season and between 8 P.M. to 8 A.M during winter season.
FAQ 19: What is the provision of availing privilege leave?
An employee has to apply in writing to the employer, indicating in advance, the date from which he would like to avail privilege leave 15 days in advance.
FAQ 20: Is there any legal obligation for keeping the premises clean?
The premises of every establishment shall be kept clean and free from effluvia arising from any drain or privy or other nuisance and shall be cleaned at such time and by such methods prescribed under Rule 11 of the Act.

FAQ 21: Whether an employer is liable to pay compensation if an employee suffers injuries or is subject to fatal accident?
The provisions of workman's compensation Act 1923, have been made applicable to every establishment covered under the Act.

FAQ 22: Whether an employer is bound to maintain some records pertaining to the employees?

Yes, the employer is bond to maintain records and display notices as provided under section 33 of the Act and Rule 14.

Friday, 1 July 2016

Due Date Calander for the Month of July, 2016

Due Date
Filing of Forms under Act
Applicable Forms
Obligation for filing of forms
Service Tax
Challan No GAR-7
Online Payment of Service Tax for June 2016 for Companies Assesses
Income Tax
Challan no ITNS-281
Due date of payment of TDS and TCS which is  deducted and Collected in June 2016
Filing of Return for Non-SSI Assessees for June 2016
Companies Act
Any Form of Company
Filing of Form for the Period  25.03.2016 to 30.06.2016  without additional fees upto 10.07.2016
BE - 2
Banquts, Halls etc in delhi shall file Advance information for 2nd fortnight of July 2016 of functions with booking cost more than Rs 1 lakh
Due date for Payment of DVAT TDS for June 2016
Provident Fund
Electronic Challan Cum return
Online payment of PF for June 2016
ESI Challan
Payment of ESI of June 2016
D-VAT 20 & Central
E-payment of DVAT & CST for June 2016
DVAT- 43
Issue of certificate for deduction made in June 2016 in DVAT-43
Form 16 and CST 1
E- Return of DVAT for Qtr ended June
Banquet Halls,hotels etc in Delhi  shall file Advance information for 1st fortnight of Aug 2016 of functions with booking cost > Rs 1 lakh
DVAT- 56
Filing of DVAT Return Verification Form for Quarter ended Jun where return not filed with Digital signature
DVAT- 48
Return of TDS for Jun quarter in DVAT 48
Income Tax
Form 26QB (Purchase of Property)
Payment of TDS for purchase of property in June 2016
Income Tax
Form No. ITR 1,2,3,4, Sugam, Sahaj
Filing of I.T Return by Individuals, HUF - without Audit
Form No. ITR 5
Filing of I.T Return by Firm, AOPs, BOIs  - without Audit
Form No. ITR 7
Filing of I.T Return by Trust, political parties - without Audit
Return No 24Q, 26Q & 27Q
TDS Returns for June Quarter by All Deductors