Individuals who have carried out high value transactions but have not filed their income tax returns for the Assessment Year (AY) 2018-19 would get 21 days time to submit their responses, the Central Board of Direct Taxes (“CBDT”) said.
“Non-filers are requested to assess their tax liability for AY 2018-19 and file the ITR or submit online response within 21 days. If the explanation offered is found satisfactory, matters will be closed online.”However, in cases where no return is filed or no response is received, initiation of proceedings under Income Tax Act 1961 (“ACT”) will be considered,” the CBDT said. The 21-days’ time period would be from the date of receiving e-mail or SMS from the Income Tax Department regarding non-filing of tax returns.
Clarification Regarding Liability and Status of Official Assignees under the Income-Tax Act.
Where an order of Insolvency is passed against a debtor by the concerned Court, property of the debtor gets vested with the Court appointed Official Assignee. The Official Assignee then realizes property of the insolvent and allocates it amongst the creditors of the insolvent. Consequentially, Official Assignee has the responsibility to handle income-tax matters of the estate assigned to him. In this regard, a clarification has been sought regarding applicability of clause (iii) of section 160(1) of the Income-tax Act, 1961 (Act) which applies on a ‘Representative Assessee’ in the case of an Official Assignee Therefore, Official Assignee is required to file income-tax return electronically in the ITR Form applicable to ‘artificial juridical person’ separately for each of the estate of the insolvent and the income shall be taxed as per the rates applicable in a particular year to an “artificial juridical person’. In view of the above position, Official Assignees would have to obtain a separate PAN for each of the estate of the insolvent.
Circular No 04/2019 dated 28th January, 2019
Withdrawal of Circular No.10/2018 dated 31.12.2018
CBDT has withdrawn “Circular No. 10/2018” dated 31.12.2018 on applicability of section 56(2)(viia) of the Income-tax Act, 1961 for issue of shares by a company in which public are not substantially interested vide its Circular No.2/2019 and 3/2019.
The circular was issued to clarify that the provisions of Section 56(2)(viia) shall not be applicable to cases of receipt of shares as a result of fresh subscription of shares, rights issue or even bonus shares issued.
Now, CBDT is of the view that the matter relating to interpretation of the term ‘receives’ used in section 56(2)(viia) of the Act is pending before judicial forums and stakeholders have sought clarifications on similar provisions in section 56 of the Act, and therefore matter is required to be examined afresh so that a comprehensive circular on the matter can be issued.
Circular No. 03/2019 dated 21st January 2019
Last Updated: 4th February 2019
This article is contributed by:
Senior Manager, Direct Tax