Instructions to AOs to rectify/reconcile disputed arrears in demand irrespective of limitation of four years u/s.154(7) — Circular No. 4, dated 20-6-2012.

In certain cases, assessees have disputed the figures of arrear demands shown as outstanding against them in the records of the Assessing Officers. The Assessing Officers have expressed their inability to correct/reconcile such disputed arrear demand on the ground that the period of limitation of four years as provided u/ss.(7) of section 154 of the Act has expired. Further, in some cases, the Assessing Officers have uploaded such disputed arrear demand on the Financial Accounting System (FAS) portal of Centralised Processing Center (CPC), which has resulted in adjustment of refund arising out of processing of returns against such arrear demand which has been disputed by such assessees on the grounds that either such demand has already been paid or has been reduced/eliminated in the appeals, etc. The arrear demands, in these cases also were not corrected/reconciled for the reason that the period of limitation of four years has elapsed. The CBDT has now authorised the Assessing Officers to make appropriate corrections in the figures of such disputed arrear demands after due verification/reconciliation and after examining the same on merits, whether by way of rectification or otherwise, irrespective of the fact that the period of limitation of four years as provided u/s.154(7) of the Act has elapsed.

Notification No. 25/2012, S.O. 1453(E) dated 2-7-2012 — Income-tax (Seventh Amendment) Rules, 2012 — Amendment in Rule 12 and substitution of forms ITR 5 and ITR 6.

Rule 12 provided that the prescribed ITR Form SAHAJ — ITR 1 and SUGAM — ITR 4S could not be used by a resident individual or a HUF to file his return of income, if he had:

(a) assets (including financial interest in any entity) located outside India; or

(b) signing authority in any account located outside India.

The Rule is amended to provide that not ordinary residents can use SAHAJ — ITR 1 and SUGAM — ITR 4S though they have assests located outside India and have signing authority in any account located outside India.

Agreement for exchange of information for collection of taxes between India and Jersey — Notification No. 26/2012, dated 10-7-2012. DTAA between India and Norway notified — Notification No. 24/2012, dated 19-7-2012.

The CBDT vide its Notification No. 9/2012, dated 17th February, 2012 has exempted salaried employees from the requirement of filing the returns for A.Y. 2012-13.

The exemption is applicable only if all the following conditions are fulfilled:

• Employee has earned only salary income and income from savings bank account and the annual interest earned from savings bank account is less than Rs.10 thousand.
•  The total income of the employee does not exceed Rs.5 lakh (Total income means gross total income less deductions under Chapter VIA).
• The employee has reported his PAN to the employer.