Financial Daily from THE HINDU group of publications
Sunday, Mar 03, 2002
Financial Daily from THE HINDU group of publications Sunday, Mar 03, 2002 |
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Investment World
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Income Tax Columns - Tax Talk Returns and assessments T. Banusekar UNDER Section 139(1), every person whose income exceeds the maximum amount not chargeable to tax is required to furnish a return within the due dates stipulated by the Section. It is proposed to insert a new sub-section (1A). By virtue of this sub-section, individuals who have salary income may, at their option, furnish a return of income to their employer. The employer shall, in turn, furnish the return in electronic form before the due date to the Department. The employee in such cases will be deemed to furnish his return once the employer furnishes the same in electronic form. It appears that there is no consequence to the employer for not filing the same in electronic form while the employee may suffer a penalty under Section 271F if the employer fails to submit the same in electronic form. This amendment is proposed to be effective from the assessment year 2002-03 onwards. Penalty for failure to furnish a return: Presently, penalty is leviable under Section 271F to the extent of Rs 5,000 if:
It is proposed that this penalty will be leviable in both the cases only where there is a failure to furnish a return before the end of the relevant assessment year. Defective returns: The explanation to Section 139(9) which provides for when a return is defective requires that an assessee must along with his return furnish proof of tax deducted at source failing which the return is defective. A proviso is sought to be inserted to provide that the return shall not be defective for failure to furnish a certificate of tax deducted at source where the same has not been received by the assessee provided the certificate is furnished within two years from the end of the relevant assessment year. The amendment it is proposed will be effective from June1, 2002. Scrutiny assessment: It is proposed that Section 143(2) be amended to give the power to an assessing officer to scrutinise a return by the issue of a notice under this Section where he has reason to believe that any claim of loss, exemption, deduction, allowance or relief made in the return is inadmissible. This amendment is proposed to be effective from June 1, 2002. Consequently Section 143(3) is also to be amended so as to give the power to an assessing officer to allow or reject the claim or claims specified in the notice and make an assessment determining the total income or loss and the sum payable on the basis of such assessment. Other amendments: Section 155 gives empowers an assessing officer to amend an order in certain circumstances. It is proposed that with effect from June 1, 2002, the power to amend will also include the power to give credit for tax deducted at source where the TDS certificate has not been furnished along with the return but has been furnished before the assessing officer before the expiry of two years from the end of the relevant assessment year. A proviso is also to be inserted to clarify that this sub-section shall not apply unless the income from which the tax has been deducted has been disclosed in the return of income of the relevant assessment year. It is proposed under Section 50C that the value of consideration be taken as the guideline value for stamp duty purposes. Section 155 is to be amended to empower an assessing officer to revise full value of consideration on the basis of the value revised in any appeal, revision or reference under that Act.
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