Friday, November 17, 2017

Order u/s 119 of Income tax Act 1961 - Instruction no. 10/2017


Some of the major guidelines which have been brought into by the CBDT using powers as given under section 143(1)(a)(vi) -


"" (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return""

Brief about the guidelines:

1- Form16, 16A and 26AS will not be used where e.g.In ITR-4 the income from HP/PGBP/SAL have been shown on NET basis....however where any OMISSION has been occurred then these provisions will be invoked,

2- Sec 44AD/44AE related income cases, it would be difficult to correlate the receipts with these 3 FORMS hence any UNLIKELY difference will not be taken into account by the authorities by using this section, however e.g. GROSS turnover if reported u/s/ 44 AD/ ADA then these provisions can be invoked if any difference arises,

3- ITR-2 & 3 where income under the head salary can be directly traced from these 3 forms then this section will be invoked,

4- Where it is difficult to correlate which head of income has been shown under which head then it would be difficult to match the total income with these 3 FORMS,


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For reading full text of the Instructions please refer - http://www.incometaxindia.gov.in/Lists/Latest%20News/Attachments/197/Instruction-10-Processing-ITR-2-3-4-5-6-143-1-IT-Act-applicability-143-1-a-vi-15-11-2017.pdf

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