TIOL-DDT 414 · the untouched capture
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<p> <font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 414</font><font size="2"><br>
26 07 2006<br>
Wednesday</font></b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">IT Notification and forms issued</font></strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finally the Income Tax department has been successful in publishing the notification said to have been issued on 24.7.2006 with the new forms 1,2,3 and 3B. The amended rules stipulate that </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“The return of income or the return of fringe benefits to be furnished in Form No.1 or Form No.2 or Form No.3 or Form No. 3B shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or Form or report of audit required to be attached with the return of income or the return of fringe benefits under any of the provisions of the Income-tax Act, 1961.” </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As mentioned by us yesterday, the department has come up with full page ads today. But the forms are still not available and the much publicised website <a href="http://www.incometaxindiaefiling.gov.in/">http://www.incometaxindiaefiling.gov.in</a> is still not active. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Never mind if the forms are not available, the last date for filing returns in these forms has been extended to 31<sup>st</sup> October instead of 31<sup>st</sup> July.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2006/it06not0189.htm">NOTIFICATION NO. 189/2006, DATED 24-7-2006</a><strong> and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2006/cbdtorderr.htm">CBDT’s order in F.No.142/41/2005-TPL(Pt) dated 24.7.2006 but released on 25.7.2006</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Post offices notified for receiving IT returns from today.</font></strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now you can file your IT returns at the nearest post office. The department has notified a large number of post offices to collect the returns. Obviously this was done with a lot of home work. DDT called up a couple of notified post offices and they were very well informed about this. “All you have to do is bring a photocopy of your return on which we will acknowledge”, informed a helpful postal employee. Will the postal department collect any charges from the IT department for collecting the forms and if so, will the post offices be liable to pay Service Tax? Central Excise officers can make a visit to these post offices to file their return and do a little investigation.</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600"> </font></strong><font color="#006600"><strong>Saral is really saral, confirms minister</strong></font></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.S. Palanimanickam, Minister of State in the Ministry of Finance informed the Rajya Sabha:-</font></p>
<p align="justify" style='
text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ the new Form 2F is essentially an expanded version of the existing Naya Saral so as to provide more space to fill out the details. </font></p>
<p align="justify" style='
text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ the cash flow statement in Form 2F is intended to protect the salaried taxpayers from any intrusive investigation. </font></p>
<p align="justify" style='
text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In any case, a salaried taxpayer has the option of filling Form 2F or the Naya Saral. </font></p>
<p align="justify" style='
text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ This option is available upto 31st July, 2006 which is the due date for filling the tax return. </font></p>
<p align="justify" style='
text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Further, even where a person chooses to file Form 2F, he has the option of not filling out the cash flow statement. </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<strong><font color="#006600">No deduction of interest on bank deposits – govt reminds</font></strong> </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax assessees may be remembering that interest earned on bank deposits, National Savings Certificates, Bonds, Debentures of Public Company, etc. was allowed as deduction from income up to Rs. 12,000/-. This exemption has been withdrawn from the financial year 2005 -06. The government reminds the tax payers that there is no such exemption now. <i>“The taxpayers are accordingly, advised to ensure that such income is taken into account while filing the return of income for assessment year 2006-07, otherwise it may result in levy of interest or penalty.”</i></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">5% duty under EPCG Scheme - even in cases of domestic procurement.</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT clarifies that, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ To that extent 5% duty under EPCG Scheme has to be paid even in cases of domestic procurement.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ 5% applicable customs duty on notional basis shall be charged before EPCG Authorisation is invalidated for direct import and EO shall be calculable at the reduced duty saved amount accordingly. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ These instructions will be implemented prospectively and shall be applicable in all such cases where Authorisations have to be issued henceforth or where Authorisation/licence has already been issued but invalidation has not been allowed so far</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2006/dgft06cir014.htm">Policy Circular No. 14 (RE-2006)/ 2004-09 Dated: 25.07.2006 </a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Hemambika</font></b><font color="#006600"><strong> Priya is Board’s spokesperson</strong></font></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board has appointed Ms. Hemambika R. Priya, Director (CX 6 & 8), as official spokesperson of the Board. It is really wonderful that the Board finally has a spokesperson. We fondly hope she will have a lot of speaking to do. The Board has also instructed Commissioners to furnish her information on a priority basis. The TRU has also been asked to give her copies of the notifications with background papers to enable her to brief the press. We fondly hope this experiment will succeed.</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Adjudication – no immunity from disciplinary proceedings – ZB Nagarkar over ruled.</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the <i>ZB Nagarkar</i> case, the Supreme Court had ruled that quasi judicial authorities cannot be subject to disciplinary proceedings for passing wrong orders. In a path breaking order sure to have great ramifications is Revenue adjudications, the Supreme Court has held that <i>Nagarkar</i> is not good law and officers can indeed be punished for wrong orders. We will bring you the Supreme Court order tomorrow.</font></p>
<p align="center" > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Stop Press</b></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Finally we have managed to get the much elusive new IT forms <u><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/new_form1.doc">1</a>,<a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/new_form2.doc">2</a>,<a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/new_form3.doc">3</a> and <a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/new_form3b.doc">3B</a> </u>. See them in our<u> What’s new or Forms Section</u></b></font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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