The Income Declaration Scheme, 2016 and the Direct Tax Dispute Resolution Scheme, 2016 are very important initiatives of the Government. These have created unprecedented interest amongst the taxpayers and tax professionals. However, several stake holders have complained that the numerous clarifications and press releases issued by the CBDT as well as the expert opinions and other resources are scattered at various places and that this is hindering effective compliance of both schemes. To aid our fellow professionals and tax payers, AIFTP has prepared a Guide in which all the resources are arranged in a systematic manner

Vide an order dated 29.07.2016 issued u/s 119 of the Income-tax Act, the CBDT has extended the due date for furnishing returns of income from 31st July 2016 to 5th August 2016. Vide another another order dated 29th July 2016, the CBDT has extended the due date for income-tax assessees in the State of Jammu & Kashmir to 31st August 2016

The CBDT has vide directive dated 22nd July 2016 prescribed the Standard Operating Procedure (SOP) to be followed by the field staff for handling AIR transactions without valid PAN. The CBDT has also vide letter dated 25th July 2016 revised the template of the letter to be addressed by the field officers while handling reported cases of AIR transactions

The CBDT has vide a series of orders directed the transfers and postings of several officers in the grade of principal Commissioner of Income-tax, Commissioner of Income-tax, Assistant and Deputy Commissioner of Income-tax. The CBDT has also notified that the President has promoted several Income Tax Officers to the grade of Assistant Commissioner of Income-tax

The CBDT has issued Instruction No. 5/2016 dated 14th July 2016 by which it has, in order to ensure that maximum objectivity is maintained in converting a case falling under ‘Limited Scrutiny’ into a ‘Complete Scrutiny’ case, issued guidleines which require the Assessing Officer to form a reasonable view that there is possibility of under assessment of income if the case is not examined under ‘Complete Scrutiny’. It is stated that the monetary limits and requirement of administrative approval from Pr. CIT/CIT/Pr. DIT/DIT, as prescribed in Para 3(d) of earlier Instruction dated 29.12.2015, shall continue to remain applicable

With a view to provide relief to small taxpayers, the CBDT has issued an Office Memorandum dated 14th July 2016 directing that refunds up to Rs. 5,000 as also refunds in cases where arrear demand is up to Rs. 5,000 in non-CASS cases, may be issued expeditiously without any adjustment of outstanding demand under Section 245 during the Financial Year 2016-17. The CBDT has directed the exercise to be completed and a compliance report be sent to the Board by 29th July, 2016

The Ministry of Finance has issued a press release by which it has stated that the time schedule for making payments under the Income Declaration Scheme 2016 have been revised

The CBDT has issued Instruction No. 4/2016 dated 13th July 2016 in which it has set out the criteria for compulsory manual selection of cases for scrutiny during the Financial Year 2016-2017

The CBDT has issued Circular No. 27 of 2016 dated 14th July 2016 to further provide clarifications to various doubts and concerns raised by the stakeholders with regard to the Income Declaration Scheme, 2016 which came into effect on 1st June, 2016. The CBDT has in particular clarified the query whether the payment under the Scheme can be made out of undisclosed income without including the same in the income declared, thereby bringing down the effective rate of tax, surcharge and penalty payable under the Scheme to around 31%. The CBDT has already issued three sets of FAQs vide Circular Nos. 17, 24 & 25 of 2016.

The Ministry of Finance has issued a Press Release stating that the Government has accepted the recommendations of the Sub-Committee of the High Level Committee to interact with Trade & Industry on Tax Laws on issues relating to compliance procedure for the excise duty,records to be maintained and other relevant administrative issues