Punishmentfor certain offences.
*Non-Bailable Offences*
Section 132 of CGST ACT
(1) Whoever commits any of the following offences, namely:—
(a) supplies any goods or services or both without issue of any invoice, inviolation of the provisions of this Act or the rules made thereunder, with the intentionto evade tax;
(b) issues any invoice or bill without supply of goods or services or both inviolation of the provisions of this Act, or the rules made thereunder leading to wrongfulavailment or utilisation of input tax credit or refund of tax;
(c) avails input tax credit using such invoice or bill referred to in clause (b);
(d) collects any amount as tax but fails to pay the same to the Government
beyond a period of three months from the date on which such payment becomes due;
(e) evades tax, fraudulently avails input tax credit or fraudulently obtains refundand where such offence is not covered under clauses (a) to (d);(f) falsifies or substitutes financial records or produces fake accounts ordocuments or furnishes any false information with an intention to evade payment oftax due under this Act;
(g) obstructs or prevents any officer in the discharge of his duties under this
Act;
(h) acquires possession of, or in any way concerns himself in transporting,
removing, depositing, keeping, concealing, supplying, or purchasing or in any othermanner deals with, any goods which he knows or has reasons to believe are liable toconfiscation under this Act or the rules made thereunder;
(i) receives or is in any way concerned with the supply of, or in any other manner
deals with any supply of services which he knows or has reasons to believe are in
contravention of any provisions of this Act or the rules made thereunder;
(j) tampers with or destroys any material evidence or documents;
(k) fails to supply any information which he is required to supply under this Act
or the rules made thereunder or (unless with a reasonable belief, the burden of provingwhich shall be upon him, that the information supplied by him is true) supplies false
information; or
(l) attempts to commit, or abets the commission of any of the offences mentioned
in clauses (a) to (k) of this section,shall be punishable–
(i) in cases where the amount of tax evaded or the amount of input tax creditwrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred
lakh rupees, with imprisonment for a term which may extend to five years and with fine;
(ii) in cases where the amount of tax evaded or the amount of input tax creditwrongly availed or utilised or the amount of refund wrongly taken exceeds two hundred
lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for aterm which may extend to three years and with fine;
(iii) in the case of any other offence where the amount of tax evaded or theamount of input tax credit wrongly availed or utilised or the amount of refund wronglytaken exceeds *one hundred lakh rupees but does not exceed two hundred lakh rupees*,
with *imprisonment for a term which may extend to one year and with fine*
(iv) in cases where he commits or abets the commission of an offence specified
in clause (f) or clause (g) or clause (j), he shall be punishable with *imprisonment for aterm which may extend to six months or with fine or with both*
(2) Where any person convicted of an offence under this section is again convicted of
an offence under this section, then, he shall be punishable for the second and for every
subsequent offence with *imprisonment for a term which may extend to five years and withfine*
(3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and
sub-section (2) shall, in the absence of special and adequate reasons to the contrary to be
recorded in the judgment of the Court, *be for a term not less than six months*
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all
offences under this Act, except the offences referred to in sub-section (5) shall be non-cognizable and bailable.
(5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of
sub-section (1) and punishable under clause (i) of that sub-section shall be cognizable and
non-bailable.
(6) A person shall not be prosecuted for any offence under this section except with theprevious sanction of the Commissioner.
Explanation.— For the purposes of this section, the term “tax” shall include the
amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refundwrongly taken under the provisions of this Act, the State Goods and Services Tax Act, the
Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Actand cess levied under the Goods and Services Tax (Compensation to States) Act.
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CBIC Notifies New Customs Audit Regulations, Rs. 50,000 Fine on Audit Professionals in case of Default* [Read Regulations]
Read more at: http://www.taxscan.in/cbic-customs-audit-regulations-fine-audit-professionals/23835/
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📺 *Updates*
▶1. Supply of foods and beverages in trains doesn’t amount to service; considered as supply of goods: AAR
▶2. Assessee can issue C-form for high speed diesel under CST Act as it isn’t covered under GST: HC
Shree Raipur Cement Plant v. State of Chhattisgarh
▶3. CAs no more entitled to do valuation of unquoted shares; CBDT allows only Merchant Bankers to do so
▶4. Issuing share capital at excess premium not taxable in hands of eligible start-ups, CBDT notifies
https://www.taxmann.com/topstories/222330000000015552/issuing-share-capital-at-excess-premium-not-taxable-in-hands-of-eligible-start-ups-cbdt-notifies.aspx
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# *GST*: 31 MAY 2018 is the last date of filing of GSTR-1 for the m/o APR 2018 and thereafter every 10th of the Next Month (i.e. for May’18: 10 JUN 18, for Jun’18: 10 JUL 18 and so on).
# *GST*: Due date of monthly GSTR-3B is 20th of the next month and was filled first and then GSTR-1. However for May and onwards, First upload GSTR-1 by 10th and then GSTR-3B by 20th of the next month.
# *MCA* has identified a fresh set of 2.25 Lac companies, which did not make the requisite filings for 2015-16 & 2016-17, for striking down their names as part of the crackdown against so called “shell companies”.
# *IBC*: The Cabinet Approves Ordinance to Change Bankruptcy Code in line with 14-member Insolvency Law Committee’s suggestions to MCA including addressing the situation of home buyers, expanding the pool of potential bidders, making recoveries easier for lenders, and expediting the decision-making process by creditors.
# *GST*: Appellants are entitled to get 'C Forms' under CST Act for Purchase of high speed diesel for manufacturing of cement - Shree Raipur Cement Plant Vs. State of Chhattisgarh, CCT & Ors. (2018 (5) TMI 1494 - Chhattisgarh HC).
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Powers & Procedures for GST return mismatch if pointed out by Dept*
1. *Return:Section 2(97) CGST Act 2017*
unless the context otherwise requires, the term “return” means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder.
2. *Rule 61 of CGST ACT Form and manner of submission of monthly returns*
Rule 61(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, [specify the manner and conditions subject to which the] (Substituted for “specify that” vide Notification No. 22/2017 - Central Tax dt 17.08.2017; w.e.f 01.07.2017) return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Thus, Form GSTR-3B is also Prescribed u/s 2(97) of CGST Act.
3. *Section 61 (1) of CGSTAct 17: Dept may Scrutinize the returns*
The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.
4. *Rule 99 (1) of CGST Act 17: Calling information by Department*
He shall issue a notice to the said person in FORM GST ASMT-10, informing him of such discrepancy and seeking his explanation thereto within such time, not exceeding thirty days from the date of service of the notice or such further period as may be permitted by him and also, where possible, quantifying the amount of tax, interest and any other amount payable in relation to such discrepancy.
5. *Section 61 of CGST Act 17: If reply found acceptable by Dept*
In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.
6. *Section 61 (3) of CGST Act 17:In case of reply not acceptable by Dept or non furnishing of information sought by Dept*
In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those
-under section 65 (Audit by Tax Authority) or
-section 66 (Special Audit) or
-section 67 (Power of Inspection), or
- proceed to determine the tax and other dues under section 73 or section 74.
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ICAI organize 1st Overseas Campus placement for CAs on 24th to 26th August, at Chennai , Mumbai & Delhi . The campus program is open to all levels - entry , middle and top Mangement. The entire Placement Programme is available online at
cpabiplacements.icai.org
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No Violation of Income Tax Law If Assessee utilized House Loan for Advancing Loans to others for Earning Interest: ITAT* [Read Order]
Read more at: http://www.taxscan.in/income-tax-house-loan-interest-itat/23824/
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CBDT Released ITR 6 as well for FY 2017-18, Now All ITRs for AY 2018-19 are available for e-Filing https://studycafe.in/2018/04/cbdt-released-itr-1-to-itr-7-forms-for-fy-2017-18-ay-2018-19.html
CBDT notified the 6th Amendment Rules wherein it is provided that only Merchant Bankers are entitled to do Valuation of Unquoted Shares and the Chartered Accountants are no more eligible to do so. Rule 11UA w.e.f. on or after May 24, 2018.
31.5.18 is last date to file AIR in Form 61A by Banks etc & also in Tax Audit cases where above Rs 2 lacs received against any sale invoice. Penalty of 500 per day for not filing AIR in time. If no transaction to report, file SFT Preliminary Response at Reporting Portal https://report.insight.gov.in
Intra-state e-Way Bill wef 25.05.18 in Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman, Diu, Lakshadweep, Maharashtra & Manipur.
Consumer complaint not maintainable after settlement through Arbitration. National Consumer Disputes Redressal Commission.
Employees’ Provident Fund Organization (EPFO) has asked its field offices to credit 8.55% interest rate for 2017-18, the lowest rate since 2012-13 fiscal, into the PF accounts of around 5 crore subscribers.
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Cost Accountants urges FM to allow appearance before Tribunals* [Read Letter]
Read more at: http://www.taxscan.in/cost-accountants-fm-tribunals/23854/
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GSTN to shut down on 2nd June due to Major Disaster Recovery Drill*
Read more at: http://www.taxscan.in/gstn-major-disaster-recovery-drill/23867/
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Official Website of CBIC Renamed*
Read more at: http://www.taxscan.in/official-website-cbic-renamed/23877/
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Goods Detained under GST laws cannot be Released unless Adequate Security is furnished: Kerala HC
Read more at: http://www.taxscan.in/goods-detained-gst-laws-released-adequate-security-furnished-kerala-hc/23858/
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GST tax rate in case of combination of restaurant with hotel and food supplied to Hospital and Catering Services as well as Accommodation Services by Hostel
https://etaxupdates.com/gst-rate-in-case-of-hotel-with-restaurant/
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# *LLP*: 30 MAY 2018 is the last date of filing of annual return in LLP Form-11.
# *TDS*: 31 MAY 2018 is the last date of filing of Quarterly Statement for the quarter Jan-Mar, 2018.
# *CBDT* has omitted the word ‘Accountant’ from Rule 11UA(2)(b) of Income Tax Rules, 1962. Now only Merchant Bank can issue Valuation Report for the purpose of section 56 of the Income Tax Act – N.N.23/2018, dt.24.05.2018.
# *CBDT* relaxes the conditions of issue of shares at premium in excess of Fair Market Value u/s 56(2)(viib) where approval has been granted by the Inter-Ministerial Board of Certification – N.N.24/2018, dt.24.05.2018.
# *IT*: In the event it is ultimately found that at the time of paying the borrowing fee to NSCCL or even prior to it, the assessee was unaware of the identity and other details of the lenders, then it cannot be fastened with the liability of deduction of tax u/s 194A - JM Fin.Ser.Ltd. Vs. DCIT (TDS) (2018 (5) TMI 1586 - ITAT Mum).
# *IT*: Following the AS, assessee has adopted exclusive method of accounting w.r.t. the recording of purchase, sale and inventory of the goods - AO erred in including the element of taxes only in the closing stock of inventories - No additions – ACIT Vs. ISO Tex Corporation (2018 (5) TMI 1599 - ITAT Ahmd).
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No Change in GST Law and Taxation relating to Farmers: Govt clarifies*
Read more at: http://www.taxscan.in/gst-law-taxation-farmers-govt/23874/
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*👉🏻CA Sudha Balakrishnan appointed as first CFO of RBI*
(CA Sudha Balakrishnan has been appointed the first ever chief financial officer (CFO) of RBI. The appointment will initially be made for a period of three years, which could be extended further subject to annual review)
👇🏻 👇🏻 👇🏻
https://goo.gl/fWPvHh
*👉🏻Nationwide bank strike on May 30 and 31*
(The proposed nationwide bank strike on May 30 and May 31 stands as the conciliatory talks convened by the Chief Labour Commissioner failed)
👇🏻 👇🏻 👇🏻
https://goo.gl/hFxR2G
*👉🏻2.25 lakh shell companies under scrutiny of corporate affairs ministry*
(ROC is in the middle of issuing notices to these entities, and if they fail to file returns over the next few months, they may get deregistered)
👇🏻 👇🏻 👇🏻
https://goo.gl/4bfo6b
*👉🏻EOI for Support Consultant-Cum-Internal Auditor of H.P.State Co-operative Bank*
(Expression of interest for engage service of eligible chartered accountant firm to work as support consultant cum internal auditor of the bank.)
👇🏻 👇🏻 👇🏻
https://goo.gl/NAqUYh
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CBDT Chairman Shri Sushil Chandra was given one-year extension as the chairman of the CBDT till May next year. This is his second extension after taking over as the chief of the CBDT on November 1, 2016.
31.5.18 is last date to file AIR in Form 61A by Banks etc & also in Tax Audit cases where cash above Rs 2 lacs received against any sale invoice.
Penalty of Rs 500 per day for not filing AIR in time. If no transaction to report, file SFT Preliminary Response athttps://report.insight.gov.in under Profile.
No Income Tax on Eligible Start-Ups on Issuing Share Capital at Excess Premium: CBDT has notified that Income Tax is not payable on issuing share capital at excess premium by eligible start-ups.Notification No. 24/2018/F. No.370142/5/2018-TPL dated May 24, 2018.
MCA amend the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, which may be called and shall come into force with effect from the 22nd May 2018.
The Law Ministry has clarified that Aadhaar linkage with savings bank account cannot be made mandatory. However, it has opined that there is no problem in linking the PAN. Supreme Court Hearing in this case is over and the court has reserved its verdict.
Due date for filing GSTR -1 for the month of April 2018 for taxpayers with turnover morethan 1.50 Crore and Quarterly TDS statement for March ending is May 31, 2018.
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GST not Leviable on Sale of ‘Going Concern’: AAR* [Read Order]
Read more at: http://www.taxscan.in/gst-sale-going-concern-aar/23890/
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GST: Haryana notifies Norms for Manual processing of Refund* [Read Notification]
Read more at: http://www.taxscan.in/gst-haryana-manual-processing-refund/23870/
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Supply of Priority Sector Lending Certificates to attract GST under Reverse Charge* [Read Notification]
Read more at: http://www.taxscan.in/supply-priority-sector-lending-certificates-attract-gst-reverse-charge/23908/
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GST Portal enables facility of Tracking ARN for Exports*
Read more at: http://www.taxscan.in/gst-portal-tracking-arn-exports/23920/
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Govt Notifies NACIN as authority for conducting GST Practitioners* Exam [Read Notification]
Read more at: http://www.taxscan.in/govt-nacin-gst-practitioners-exam/23910/
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Supply of Priority Sector Lending Certificates to attract GST under Reverse Charge* [Read Notification]
Read more at: http://www.taxscan.in/supply-priority-sector-lending-certificates-attract-gst-reverse-charge/23908/
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No Late Fee for Delayed filing of GSTR-5A: GSTN*
Read more at: http://www.taxscan.in/late-fee-delayed-filing-gstr-5a-gstn/23923/
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GST Portal enables facility of Tracking ARN for Exports*
Read more at: http://www.taxscan.in/gst-portal-tracking-arn-exports/23920/
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Lease Rent paid by Hospital on Premises subject to GST: AAR* [Read Order]
Read more at: http://www.taxscan.in/lease-rent-hospital-gst-aar/23931/
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No Addition in respect of Gift in the nature of Cash and Property made in pursuance of Family Arrangement between Family Members: ITAT* [Read Order]
Read more at: http://www.taxscan.in/addition-gift-cash-property-family-arrangement-family-members-itat/23903/
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# *GST* - Transfer of business as a whole of one of the units of the Applicant in the nature of a going concern amounts to supply of service, N.N.12/2017-CT (R), dt.28.06.2017 provides NIL Rate and hence EXEMPT from TAX - AAR, Karnataka in Rajashri Foods Pvt. Ltd (2018 (5) TMI 1651).
# *GST*: National Academy of Customs, Indirect Taxes and Narcotics (NACIN) has been notified as the authority for conducting the examination for GST Practitioners u/R-83 (3) of the CGST Rules, 2017 – N.N.24 /2018-CT, dt.28.05.2018.
# *GST*: Levy of Priority Sector Lending Certificate (PSLC) brought under RCM – N.N.4/2017-UTT(R) as amended vide N.N.11/2018-UTT (R), dt.28.05.2018.
# *IT*: AO was not justified in taxing the surrender made on account of excess stock and excess cash found U/s 69. Thus, there is no justification for taxing such income U/s 115BBE of the Act - Lovish Singhal & Ors. Vs. ITO & ACIT (2018 (5) TMI 1646 - ITAT Jodhpur).
# *DGFT* has issued a Public Notice w.r.t Maintenance of Annual Average Export Obligation as provided under Foreign Trade Policy (FTP), 2015-20 to avail Condonation from non-maintenance of Annual Average in some years and to offset the difference by excess exports in other year(s) in respect of EPCG authorisations.
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📺 *Updates*
▶1. FAQs on Adjusting and Non-adjusting Events
https://accountsandaudit.taxmann.com/topstories/222330000000015587/faqs-on-adjusting-and-non-adjusting-events.aspx
▶2. No additions on excess jewellery found during search if there was custom to gift jewellery in family.
Vibhu Aggarwal v. Deputy Commissioner of Income-tax, CC-06, New Delhi*
▶3. Marked to Market loss from Income-tax perspective
https://www.taxmann.com/fileopennew.aspx?id=105010000000015476&mode=home&page=
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GST Export Refund Issues: CBIC provides Interim Relief for Submission of CA Certificates* [Read Circular]
Read more at: http://www.taxscan.in/gst-export-refund-cbic-ca-certificates/23941/
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GST Gyan - Intra-state e-Way Bill with effect from 25.05.2018 in Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman, Diu, Lakshwadeep, Maharastra & Manipur.
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#Govt to issue pending IGST refund on the basis of undertakings/ submission of CA certificates - Circular No. 12/2018-Customs
#GST: “Special Refund Fortnight” to be organized from 31.05.2018 to 14.06.2018 in which Center and State GST officers will strive to clear all GST refund applications received on or before 30.04.2018.
#LLP has to file form 11 (Annual Return) for the FY 2017-18 on or before 30th may, 2018. Otherwise Additional fees of Rs. 100/- per day in case of delay in filing of Form 11
CSR: Companies should give preference to Local area & areas around it where it operates - General Circular No. 06/2018 - (28/05/2018)
Goods Detained under GST laws cannot be Released unless Adequate Security is furnished: Kerala HC
GST: Haryana notifies Norms for Manual processing of Refund
Supply of Priority Sector Lending Certificates to attract GST under Reverse Charge
No Late Fee for Delayed filing of GSTR-5A: GSTN
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Filing of Nil Statement in form No. 61A is not mandatory under section 285BA read with rule 114E but to be on safer side Assessed may consider filing such return. Further to maintain consistency Assessee who has filed Annual Information Return for Financial Year 2016-17 may consider filing such return for financial year 2017-18 too despite no specified transaction in this FY.
Sale of a going concern by a business house will not attract GST, as per an order by the Authority for Advance Ruling (AAR). The Karnataka bench of the AAR gave its ruling based on an application filed by Rajashri Foods Pvt. Ltd.
DGFT has issued a Public Notice w.r.t Maintenance of Annual Average Export Obligation as provided under Foreign Trade Policy (FTP), 2015-20. The amendments will provide an opportunity to exporter to avail Condonation from non-maintenance of Annual Average in some years and to offset the difference by excess exports in other year(s) in respect of EPCG authorizations.
SEBI will soon put in place system-driven disclosures for non-promoters, directors and certain class of employees of listed companies. The system-driven disclosures in securities market was introduced in December 2015 and is being implemented in a phased manner.
Today 30 MAY 2018 is the last date of filing of annual return in LLP Form-11.
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*Petition in Gauhati HC against GST on Processed Tea* [Read Petition]
Read more at: http://www.taxscan.in/gauhati-hc-gst-processed-tea/23936/
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*Exclusion of Chartered Accountants from Valuation of Unquoted Shares: ICAI submits Representation to Fin Min* [Read Representation]
Read more at: http://www.taxscan.in/chartered-accountants-valuation-unquoted-shares-icai/23954/
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GST: CBIC to observe Special Refund Fortnight from Tomorrow*
Read more at: http://www.taxscan.in/gst-cbic-special-refund-fortnight/23964/
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ICAI issues Accounting Standards for Local Bodies*
Read more at: http://www.taxscan.in/icai-issues-accounting-standards-local-bodies/23970/
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Five income tax notices you can get and what they mean
Most of the income tax notices that you may get are routine and there’s no need to worry if you have not hidden your income and filed your returns
Some common sections of the Income Tax Act on tax notices and why you may receive them. Graphic: Mint
It is that time of the year when you may have received a notice from the income tax department. However, unless you have hidden some income from the department or not filed your taxes, you need not worry. Most of these notices are routine and are regarding mistakes you may have made while filing income tax returns (ITRs), especially for assessment years (AY) 2016-17 and 2017-18, or clarifications related to your ITR.
The last date for filing returns for AY17 and AY18 was 31 March 2018. According to the income tax department, there is substantial increase in the numbers of registered users on its e-filing portal, which has translated into more returns filed. As on 30 April 2018, there were about 73.9 million registered users on the e-filing portal and about 67.5 million people e-filed their returns during financial year (FY) 2017-18, compared to about 52.9 million returns e-filed during FY17, an increase of about 27%.
Given the increase in return filers, some of them new, the possibility of mistakes are higher, and these can lead to notices. Here are five common tax notices that an income tax payee can receive, whether she filed her returns or not.
Income tax notices
Routine notices: Typically, when you file your return, a notice-cum-intimation is sent under Section 143(1) of the Income Tax Act, 1961. It is not always necessary to respond against this notice, as in most cases it’s just an intimation stating that the return has been successfully processed.
However, sometimes the department can send, “routine notices in the nature of providing information on arithmetical errors, mismatch of income declared in return and as appearing in Form 26AS”, said Poorva Prakash, senior director, Deloitte India. For instance, you may need to respond, if after processing your return, the department finds a mismatch in the tax paid or refund claimed by you vis-a-vis the tax deducted at source (TDS). Or even if you mentioned your permanent account number (PAN) or other details incorrectly.
Scrutiny notices: You may get notices for verification, regular assessment or reassessment or for limited scrutiny. “In case the department needs any information or clarification in relation to making assessment of income tax return filed by the assessee, notices under Sections 142(1) and 143(2) can be issued asking for information or details in relation to tax return,” said Shailesh Kumar, director, direct taxation, Nangia & Co. LLP, a chartered accountancy firm.
However, if the notice is about assessment or reassessment, you may have to undergo detailed scrutiny. Such notices come along with a questionnaire seeking information of a particular transaction, asset or income. If the notice is related to limited scrutiny, you have to provide details of particular assets mentioned in the notice such as when it was purchased, its cost, source of fund and so on.
Show cause notices: “In cases the tax department is of a view that there is concealment of income leading to shortfall in tax deposit, show cause notice for penalty may also be received,” said Prakash.
Prosecution notices: The department can also send a notice under Section 143(2) if you fail to file your returns even after receiving a notice under Section 142(1), and for other offences. “Recently the department also issued prosecution notices to tax payers where returns were not filed within the prescribed timeline or there was a shortfall of tax,” said Prakash.
Notices on details of income/assets outside India: IT department is taking various steps to curb the use of black money and benami property. For this, the department may send a notice asking details of foreign assets. “Notice can also be issued by Intelligence & Criminal Investigation Division of Income Tax Department (reference: under Section 133(6) of Income tax Act, 1961) seeking clarification or documentary evidence on various sources of income or assets located outside India,” said Prakash.
How to reply
If you have filed your returns online, you will receive the notice on your email. Go through the email carefully, and do what it asks for as early as possible because most notices require time-bound response.
For each tax notice, a particular response procedure has to be followed. Once you receive such an email, access your income tax account under the head “My Account”, click on “My Pending Actions” tab or on “Worklist” and then go to “For your action” to see if any demands or arrears are pending in your name. You can reply to almost all tax notices online through the account.
Some notices are also issued by the Central Processing Centre (CPC). You can respond to most of these online through your income tax account; unless personal appearance is specifically asked for.
Personal appearance is typically required when the assessing officer wants to further discuss the case or verify documents in original which is not possible online. “In case of personal hearing, the individual should meet the officer to explain the case,” said Prakash.
Things to remember
Replying to income tax notices within the stipulated time is a must. “There is a general penalty of Rs10,000 for each default or failure, in case any assessee, who is legally bound to furnish information or to comply to a notice issued by the Income tax department, but fails to or defaults in making such compliance,” said Kumar. Additionally, there may be specific and more severe penalties, if the assessee fails to furnish certain specific documentation or information required, added Kumar.
Things can get escalated to prosecution, depending on the case. Also, the penalty can be as high as 300% of tax dues and jail term can be up to seven years.
In case you need additional time to respond or to provide documents asked by the department, you should request for an extension of time to reply either by approaching the respective assessing officer or through the online portal.
Take the notices seriously and if you think you will be unable to reply appropriately, take the help of a chartered accountant or other experts.
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GST: Form for making Voluntary Payments available in Portal*
Read more at: http://www.taxscan.in/gst-form-voluntary-payments-available-portal/23972/
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GST Export Refund Issues: CBIC provides Interim Relief for Submission of CA Certificates* [Read Circular]
Read more at: http://www.taxscan.in/gst-export-refund-cbic-ca-certificates/23941/
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GST: CBIC to observe Special Refund Fortnight from Tomorrow*
Read more at: http://www.taxscan.in/gst-cbic-special-refund-fortnight/23964/
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GST: Form for making Voluntary Payments available in Portal*
Read more at: http://www.taxscan.in/gst-form-voluntary-payments-available-portal/23972/