The CBDT has issued Circular No. 08/2014 dated 30.03.2014 to deal with the controversial topic as to whether, if the income of the firm is Nil on account of an exemption under Chapter III or deduction under Chapter VI-A of the Act, the partners will also be entitled to claim exemption u/s 10(2A) of the Act with respect to their share in the profits of the firm. The CBDT has clarified that the term “total income” in s. 10(2A) includes income which is exempt or deductible under various provisions of the Act. It is stated that the income of a firm is taxable only in the hands of the firm and can under no circumstances be taxed in the hands of the partner. The CBDT has made it clear that the entire income credited to the partners’ account in the firm would be exempt from tax in the hands of the partners, even if the firm is also not chargeable to tax on account of an exemption or deduction

The CBDT has, in a letter dated 31.03.2014 to Chief Commissioners, set out a “Central Action Plan” for the April to June 2014 Quarter. The said Action Plan sets out a time frame for handling several important issues such as correction of demand, recovery of demand, disposal of high-demand appeals by CIT(A), completion of s. 147 assessments etc, etc. The Chief Commissioners have been directed to circulate the said Action Plan amongst the officers for necessary action

The Rajasthan Tax Consultants Association and the Jaipur Tax Tribunal Bar have resolved to file a Writ Petition in the Hon’ble Rajasthan High Court to challenge the alleged inaction by the Government and the Hon’ble President of the ITAT against the alleged corrupt practices of the Hon’ble Accountant Member Shri. B. R. Jain, presently posted at the Jaipur Bench of the Tribunal

The Finance Ministry has released a revised and comprehensive “Direct Taxes Code 2013”. The said Code contains several significant changes with far-reaching implications to the law and practice of income-tax. The Code also seeks to make the law more simplified and comprehensible. There is specific emphasis in the Code on measures to tax tax evasion. The Finance Ministry has also issued a paper highlighting the salient features of the Direct Taxes Code 2013

The CBDT has vide Order No. 52 of 2014 dated 31.03.2014 announced the postings of 95 Assistant Commissioners of Income Tax (Probationers) in the Pay Scale of Rs. 15,600-39,100 (Plus Grade Pay of Rs. 5,400 in PB-3), on completion of training at National Academy of Direct Taxes, Nagpur in the Region of CCIT (CCA) / Station / Charge indicated against each with immediate effect and until further orders

The CBDT has vide Order No. 48 of 2014 dated 27.03.2014 promoted 18 officers in the grade of Chief Commissioner/Director General of Income Tax to the grade of Principal Chief Commissioner of Income Tax (CCIT) in the Pay Scale of Rs. 80,000/- with effect from the date of assumption of charge of the post and until further orders

The clarificatory Circular No. 01/2013 dated 17.01.2013 issued by CBDT to address various contentious issues leading to tax disputes in cases of entities engaged in export of computer software which are availing tax-benefits under sections 10A, 10AA and 10B of the Income-tax Act, 1961 should be brought to the notice of all Departmental Representatives (DRs) and Standing Counsels of the Department who plead such matters before the ITATs and the Courts, respectively so that such appellate authorities/courts are duly appraised of the clarifications issued by CBDT on various contentious issues pending before them

The final instalment of Advance tax for Financial Year 2013-14 is required to be paid on or before 15th March, 2014 by the tax payers who are liable to pay advance tax. These taxpayers can make payments in the designated branches of the authorized banks, electronically or physically, as per law. The banks are open for half day on 15th March, 2014, being a Saturday. Accordingly, to facilitate payment of this instalment of Advance tax for the Financial Year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of Advance Tax, from 15th March, 2014 to 18th March, 2014. Taxpayers, therefore, can now pay their advance tax instalment by 18th March, 2014 without entailing any consequential interest for deferment

The CBDT has issued Instruction No. 02/2014 dated 26.02.2014 in which it has referred to the judgements of the Supreme Court in Transmission Corp of A. P. 299 ITR 587 and GE India Technology Pvt. Ltd 327 ITR 456 on the issue of deduction of tax at source u/s 195 while making payments to non-residents. The CBDT has directed AOs u/s 119 that in a case where the assessee fails to deduct TDS u/s 195, the AO cannot treat the whole sum remitted to the non-resident as being chargeable to tax but he has to determine the appropriate proportion of the sum chargeable to tax as mentioned in s. 195(1) for treating the assessee as being in default u/s 201

The CBDT has issued Circular No. 07/2014 dated 04.03.2014 by which it has exercised powers u/s 119 and extended, ex-post facto, the due date of filing of the TDS/TCS statement to 31.03.2014 for a Government deductor