However, it has been pointed out that the language of the proposed sub-section (5) of section 90 could mean that the Tax Residency Certificate produced by a resident of a contracting state could be questioned by the Income Tax Authorities in India. The government wishes to make it clear that that is not the intention of the proposed sub-section (5) of section 90. The Tax Residency Certificate produced by a resident of a contracting state will be accepted as evidence that he is a resident of that contracting state and the Income Tax Authorities in India will not go behind the TRC and question his resident status

The Finance Bill 2013, as introduced in Parliament today, 28th February 2013, is available for download

Vide Order No. 26 of 2013 dated 08.02.2013, the CBDT has promoted officers in the grade of Commissioner/ Director of Income-tax to the grade of Chief Commissioner of Income-tax in the pay scale of Rs. 67,000 – 79,000 with immediate effect

The CPC has issued a letter dated 30.01.2013 pointing out that there are 28,444 returns filed for AY 2012-13 where the refund is in excess of Rs. 10 lakhs which are pending processing. The CPC has directed the AO’s to check within 21 days whether any demand is outstanding in these cases and stated that in case no response is received, the e-returns shall be processed (and refund granted)

The Revenue Secretary has issued an Office Memorandum dated 22.01.2013 in which he has expressed concern over the searches/ investigations conducted by the Anti-Corruption branch of the CBI on the officers of the CBDT & CBEC and the complaints alleging misconduct by the officers in their official conduct of duties. He has stated that such incidents erode the confidence of the taxpaying community and the public and should be avoided. The Revenue Secretary has emphasized that there should be “Zero tolerance towards malpractices and corruption” and that senior officers should lead by example. Some suggestions have been given on how to achieve this salutary goal

With a view to addressing the numerous problems being faced by taxpayers due to faulty processing of TDS claims, the CBDT has formulated the “Centralised Processing of Statements of Tax Deducted at Source Scheme, 2013”. The Scheme provides for the manner in which TDS correction statements will be filed, their processing, rectification of mistakes etc. In particular, it is provided that an adjustment of refunds against outstanding tax demand can be done u/s 245 of the Act only after issuing prior intimation to the taxpayer. An appeal can also be filed against the actions of the CPC

The CBDT has issued a comprehensive Circular No. 01/2013 dated 17.01.2013 in which it has provided clarifications on various issues relating to the export of computer software and the allowance of deduction under sections 10A, 10AA and 10B of the Income-tax Act, 1961. The Clarifications seek to address and resolve the several disputes that have arisen between the software industry and the income-tax department