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The issue raised was : 1) Cash withdrawn from bank Rs.35,00,000  2) HD notes deposited on various dates later  3) leading to presumption he had sufficient cash on hand.  The case laws referred to is with reference to cash deposits which is not substantiated as to the source.  Here the issue is not merely cash deposit, here deposit is of High Denomination notes on various dates

It does appear a strange behaviour.

The question raised is "how  such evation  escapes attention of the Income-tax department" The answer is not the statutory obligation of the citizen, nor consequential penalty and interest on detection  The Income-tax department is not equipped to detect such small evasions, nor all emloyees could be said to be deligent in their work nor many of the Officers have judicious mind.  As the PM often says the Babus have feudalistic outlook and a good number of them are greedy and selfish.  They cannot put the nation first.  The department should come out with innovative ways to plug evasion and transform the society into a tax comlying community.

IS IT TRUE:
I have seen many notices sent by the department indicating the name of the faceless officer signing the notice.  I have also come across people discussing how the code number could be deciphered so as to find the location of the officer and his contact number.  Assessees are contacting them and getting their work done the way they want it.  If this is true then those who have access could still continue to bribeand cheat the government.  It will not be anymore faceless but a face now appears as a silhouette whose face could be easily found out.  Further people are getting indications for an online conference by the officer concerned.

yes

Dear Friends

The department seems to have filed an SLP in the matter of Indo French Chamber of Commerce and Industry.  The Officer has given 18600/13.  Can anyone provide me a copy of the Mumbai High Court judgement in DIT(E) v/s Indo French hamber of Commerce and Industry.  I will be grateful.

The assessee had got the jewellery valued in 2008.  The assessee has not declared this in the return of income or wealth.  Can the value on 31st March 2008 be declared as undisclosed income under IDS 2016?

Thanks

Dear Brother

I am awaiting copy of the judgement.  Please forward the judgement to me.

Thanks

Please supply copy of the judgement. 

Thanks

The rules (rule 37BA) have been amended to provide that in all such cases, the person who will be receiving the income should file a declaration with the payer of the income, stating that such income is taxable as the income of the specified persons who are supposed to be taxed on such income. There is no specific form prescribed for such declaration. Though the rule does not require it, the PAN and address of such other persons should be given with their respective shares of income. The payer of the income is then required to give details of such other persons in his TDS quarterly return, and such TDS will then be reflected in their respective form 26AS.

THE INCOME TAX RULES, 1962
RULE 37BA
289b[Credit for tax deducted at source for the purposes of section 199.
(1) Credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority.
(2) 289c[(i) where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee:
Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax referred to in sub-rule (1).]
(ii) The declaration filed by the deductee under clause (i) shall contain the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person.
(iii) The deductor shall issue the certificate for decuction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody.
(3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable.
(ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax.
(4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of –
(i) the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorized by such authority: and
(ii) the information in the return of income in respect of the claim for the credit,
subject to verification in accordance with the risk management strategy formulated by the Board from time to time.]
289b. Ins. by Income-tax (Sixth Amendment) Rules, 2009, vide Notification No. 28 of 2009, dt. 16-3-2009 (w.e.f. 1-4-2009)
289c. Subs. by Income-tax (Eight Amendment) Rules, 2011, vide Notification No. 57 of 2011/S.O. 2429(E), dt. 24-10-2011 (w.e.f. 1-11-2011) for the following :
"(i) If the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for tax deducted at source shall be given to the other person in cases where—
(a) the income of the deductee is included in the total income of another person under the provisions of section 60, section 61, section 64, section 93 or section 94;
(b) the income of a deductee being an association of persons or a trust is assessable in the hands of members of the association of persons, or in the hands of trustees, as the case may be;
(c) the income from an asset held in the name of a deductee, being a partner of a firm or a karta of a Hindu undivided family, is assessable as the income of the firm, or Hindu undivided family, as the case may be;
(d) the income from a property, deposit, security, unit or share held in the name of a deductee is owned jointly by the deductee and other persons and the income is assessable in their hands in the same proportion as their ownership of the asset:
Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax referred to in sub-rule (1)."

Why even today notices are issued by the IT Office in Mumbay by post?  The office is supposed to be issuing notices online.  Why CBDT is quite on the issue.  The purpose of issue of notices and collecting the information online is with a view to avoid personal interface so that the corruption could be reduced.  What is the idea now?

Discretionary Trust - Income distributed to the beneficiaries.  Tax deducted from the income of the trust.  The distributed income is taxable in the hands of the beneficiaries.  TDS in the name of the trust.  No taxable income shown in the name of trust.  Hence no credit to trust.  Since the TDS is in name of Trust no credit to the beneficiaries of the trust of the TDS.  In such circumstances how to get refund of the taxes paid by way of TDS.

During UPA regime the interest rate fell much lower than 7.5%.  However, as inflation caught up the government was compelled to raise the interest rates upwards.  In 2009 interest varied in the same year between 7.25 to 6.15%.  Rate of interest on FDRs is not a yardstick to measure the performance of government.  One may feel upset at the fall of interest rate if his income is mostly from interest earned.  However the government has also announced certain saving schemes where interest rate is above 9%.

Bill of exchange is known in India as Hundis.  The discounting of Hundis is very much prevalent in India and is a recognised method of financing.  Banks too when bills are discounted follow the same methodology and there is no ban on discounting of bills either by the banks or by private parties.