By Pinky Shah, Sonalee Godbole, Chartered Accountants
67. Sub-rule (3)
inserted in rule 8AA to determine the date of acquisition of capital asset
declared under the Income Declaration Scheme, 2016. – Income–tax (34th Amendment) Rules, 2016
Notification No. 108 dated 29th November 2016
68. Revenue subsidies
received from the Government towards reimbursement of cost of
production/manufacture or for sale of the manufactured goods are part of
profits and gains of business derived from the Industrial Undertaking/eligible
business, and are thus, admissible for applicable deduction under Chapter VI-A
of the Act
Circular No. 39 dated 29th
November 2016
69. Clarifications
with respect to the permissible quantity of Gold Jewellery held by an
individual
Press Release dated 1st December 2016
70. Procedure for the
purposes of furnishing and verification of Form 26A for removing of default of
Short Deduction and/or Non Deduction of Tax at Source
Notification No. 11
dated 2nd December 2016
71. Procedure for the
purposes of furnishing and verification of Form 27BA for removing of default of
Short Collection and/or Non Collection of Tax at Source
Notification No. 12 dated 8th December 2016
72. Reopening u/s. 147
of the Act is feasible only when the Assessing Officer “has reason to
believe that any income chargeable to tax has escaped assessment” and not
merely on the basis of any reason to suspect. Mere increase in turnover,
because of use of digital means of payment or otherwise, in a particular year
cannot be a sole reason to believe that income has escaped assessment in
earlier years. Hence, Assessing Officers are advised not to reopen past assessments
merely on the ground that the current year’s turnover has increased
Circular No. 40 dated 9th December 2016
73. Return of income
can be revised u/s. 139(5) of the Act for rectifying any omission or wrong
statement made in the original return of income and not for resorting to make
changes in the income initially declared so as to drastically alter the form,
substance and quantum of the earlier disclosed income. Any instance coming to
the notice of Income-tax Department which reflects manipulation in the amount
of income, cash-in-hand, profits etc. and fudging of accounts may necessitate
scrutiny of such cases so as to ascertain the correct income of the year and
may also attract penalty/prosecution in appropriate cases as per provision of
law. –
Press Release dated 14th December 2016
74. Pradhan Mantri
Garib Kalyan Deposit Scheme, 2016 notified
Notification No. S.O.4061 (E) dated 16th December 2016
75. Taxation and
Investment Regime for Pradhan Mantri Garib Kalyan Yojana Rules, 2016 notified
Notification No. 116 dated 16th December 2016
76. Rate of deemed
profit provided u/s 44AD of 8% of Total turnover or gross reduced to 6% in respect of the amount of total turnover
or gross receipts received through banking channel/digital means for the
financial year 2016-17. Legislative amendment in this regard shall be carried
out through the Finance Bill, 2017
Announcement by the Government on 19th December,
2016
77. Clarifications on
Indirect Transfer provisions under the
Act-
Circular No. 41 dated 21st December 2016
78. Up to 30 December
2016 payment towards tax, surcharge, penalty and deposit under the Pradhan
Mantri Garib Kalyan Yojana can be made in old Bank Notes of Rupees 500 and
Rupees 1000 denomination
Press Release dated 22nd December 2016.
79. Reporting of
transaction for serial no. 11 of Rule 114E(2) is required
only if cash payment is received for sale of goods or services in excess
of Rupees two lakh per transaction
Press release dated 22nd December, 2016
80. Certain
clarifications have been issued on Direct Tax Dispute Resolution Scheme, 2016-
Circular no. 42 dated 23rd December 2016
