F.No.500/33/2017-FTD.I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(Foreign Tax and Tax Research-I)

New Delhi, dated the 18th April, 2019

Subject: Public Consultation on the proposal for amendment of Rules for Profit attribution to Permanent Establishment-reg.

Taxation of non-residents in India is governed by the provisions of the Income-tax Act, 1961 (“the Act”) and the provisions of the Double Taxation Avoidance Agreement(s) [DTAA(s)] concluded or adopted by the central government under the ‘X’ wers conferred under Section 90 or 90A of the Act, respectively. Under the Act, the income tax is charged for the assessment year in respect of the total income of the previous year of every-person. In respect of a who is a non-resident, the total income includes all income from whatever source derived which is received or deemed to be received or accrues or arises or deemed to accrue or arise in India. The incomes that shall be deemed to accrue or arise in India are specified in Section 9 of the Act which. inter alia, provides that all income accruing or arising whether directly or indirectly, through or from any business connection in India shall be deemed to accrue or arise in India. However, in cases where a DTAA is also applicable, taxes on business income of a non-resident can be levied to the extent the same is permissible under such agreement. Thus, business income of a non- resident can be taxed in India if it satisfies the requisite thresholds provided under the Act as well as the threshold provided in the applicable tax treaty, by a concept of Permanent Establishment (PE). which is defined in Article 5 of Model Tax Conventions and tax treaties.

Under Article 7 in the Indian treaties, profits are to attributed to the PE as if it were a distinct and separate entity on the basis of the accounts of the PE and where such accounts are not available to enable determination of profits attributable to the PE, the profits attributable to the PE can be determined under the domestic laws. For the application of this method, the Assessing Officer in India can resort to Rule 10 of Income- tax Rules, 1962.

Recognizing the significance of issues relating to attribution of profits to a permanent establishment as well as the need to bring greater clarity and predictability in the applicable tax regime, a Committee was formed to examine the existing scheme of profit attribution to PE under Article 7 of DTAAs and recommend changes in Rule 10 of the Income-tax Rules. The Committee has submitted its report (enclosed herewith) and it has been decided to seek stakeholder’s comments on the Report of the committee.

In this regard, suggestions/comments of the stakeholders and the general public are invited on the following question:

a. What are your views on the recommendations of the Committee as contained in Section 11 of the Report? In answering this question please consider the objectives and policy rationale behind the change which have been elaborated in detail in the Report.

Comments and suggestions may sent electronically (in word format) at
usfttr-1@gov.in within 30 days of the publication of this the email address
document on website of the Income Tax Department

(www.incometaxindia.gov.in).
(Deepak Kapoor)
Under Secretary
Foreign Tax & Tax Research Division
Central Board of Direct Taxes

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CBDT’s order regarding linking of PAN with Aadhaar while filing of ITRs

F.No.225/270/2017/lTA.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North-Block, ITA II Division,
New Delhi, dated the 30th of June, 2018

Order under Section 119 of the Income-tax Act, 1961

Vide its orders dated 31.07.17, 31.08.17, 08.12.2017 & 27.03.2018 in file of even number, CBDT had allowed time till 30th June, 2018 to link PAN with Aadhaar while filing the tax-returns. Upon consideration of the matter, the CBDT further extends the time for linking PAN with Aadhaar till 31st March, 2019.

sd/-
(Rajeswari R)
Under Secretary to the Government of India

Source: https://www.incometaxindia.gov.in

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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 19th January, 2018

G.S.R. 44(E). In exercise of the powers conferred by sub-section (1) of Section 139B of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following further amendments in the Tax Return Preparer Scheme, 2006, namely:-

Short title, commencement and application.
1. (1) This Scheme may be called the Tax Return Preparer (Amendment) Scheme, 2018.

(2) It shall come into force from the date of its publication in the Official Gazette.

2. In the Tax Return Preparer Scheme, 2006 (hereinafter referred to as the said Scheme), for paragraph 3, the following paragraph shall be substituted, namely:-

“3. An individual, who holds a bachelor degree from a recognised Indian University or institution, or has passed the intermediate level examination conducted by the Institute of Chartered Accountants of India or the Institute of Company Secretaries of India or the Institute of Certified Management Accountants of India, shall be eligible to act as Tax Return Preparer”.

3. In the said Scheme, in paragraph 4,
(1) for clause (i), the following clauses shall be substituted, namely:-

“(i) It shall invite application from persons,-

(a) having requisite educational qualifications specified in paragraph 3 or having appeared in the final year examination of the qualifying examination; and

(b) who is not below the age of twenty one years or more than forty-five years as on the 1st day of October of the year immediately preceding the date on which applications are invited.

(ia) It shall require that the application under clause (i) shall be accompanied by a fee of two hundred and fifty rupees, and failing which the application shall be invalid.”.

(2) for clause (v), the following clauses shall be substituted, namely

“(v) It shall enrol the persons who qualify the test for enrolment for each training centre separately.

(va) It shall not enrol any person under clause (v), unless –

(a) he makes a deposit of an amount of seven hundred and fifty rupees, which shall be nonrefundable; and

(b) he produces a proof of having passed the qualifying examination as specified in paragraph 3″.

(3) clause (ix) shall be omitted.”.

4. In the said Scheme, in paragraph 9, for sub-paragraph (1), the following sub-paragraphs shall be substituted,
namely:-

“(1) The Board may authorise the Resource Centre or the Partner Organisation to disburse to a Tax Return preparer, the following amount, namely:-

(a) five per cent. of the tax paid on the income declared in the return of income for First Eligible Assessment Year which has been prepared and furnished by him;

(b) three per cent. of the tax paid on the income declared in the return of income for the Second Eligible Assessment Year which has been prepared and furnished by him;

(c) two per cent. of the tax paid on the income declared in the return of income for the Third Eligible Assessment Year which has been prepared and furnished by him.

(1A) The amount of disbursement for any eligible person in relation to an eligible year shall not exceed,-

(a) five thousand rupees in case of First Eligible Assessment Year;
(b) three thousand rupees in case of Second Eligible Assessment Year; and
(c) two thousand rupees in case of Third Eligible Assessment Year.”.

[Notification No. 04/2018/F.No. 142/16/2010 (SO)-TPL(Part)]

Dr T.S.MAPWAL, Under Secy.

Note : The Tax Return Preparer Scheme, 2006 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide notification number S.O. 2039(E), dated the 28th November, 2006 and last amended vide notification number S.O. 2819(E), dated the 22nd November, 2010.

Authority: http://www.incometaxindia.gov.in/

Original Link: Click here

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Clarifications regarding use of Form No. 16 for pensioners where pensioners are drawing their pensions through banks – CBDT Circular No.761, dated 13.1.1998

1184. Clarifications regarding use of Form No. 16 for pensioners where pensioners are drawing their pensions through banks

1. The attention of the Board has been drawn to certain difficulties being faced by pensioners drawing their pensions through banks where the tax deduction at source certificate in the prescribed Form No. 16 is

some-time denied to them on the ground that no employee-employer relationship exists between the banks and the pensioner. At times, objections have also been raised by the banks on the premise that Form No. 16 relates to deductions from salaries and not from pensions. In other cases, the certificates have been denied on the ground that the bank was not aware of any other income which the pensioner may have had.

2. The matter has been considered by the Board. It is hereby clarified that :—

(a) as per section 17(1)(ii) of the Income-tax Act, 1961, the term ‘salary’ includes pension;

(b) once tax has been deducted under section 192 of the Income-tax Act, 1961, the tax-deductor is bound by section 203 to issue the certificate of tax deducted in Form 16. No employee-employer relationship is necessary for this purpose;

(c) the certificate in Form No. 16 cannot be denied on the ground that the tax deductor is unaware of the payees’ other income.

3. These clarifications may be brought to the notice of all concerned, especially the banks in your region.

Circular : No. 761, dated 13-1-1998

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F.No.Dir(Hqrs.)/Cb.(DT)/29/2013
 Government of India
 Ministry of Finance
 Department of Revenue
 {Central Board of Direct Taxes)

Room No.157-B, North Block, New Delhi,
Dated the 6th January,2015

OFFICE MEMORANDUM

Subject: Instructions regarding observance of Wednesdays as a ‘Public Meeting Day’ for hearing public grievances-

As a part of Prime Minister’s ‘Good Governance Day’ promise to provide an “open and accountable administration’ it has been decided that all field offices of the Income Tax Department will observe ’Public Meeting Day’ during 10.00 AM to 1.00 PM every Wednesday to listen to and try to resolve the grievances of the members of the public. Heads of local income tax offices will not fix any official meeting on Wednesdays during the hours prescribed for interaction with the public and will ensure that their staff including staff at the reception and security personnel. are suitably instructed to allow the members of the public to meet the officers without prior appointment.

Accordingly, the undersigned has been directed to request all cadre controlling Principal Chief Commissioners /Director Generals of Income Tax to instruct all officers and staff under their cadre control to observe ‘Public Meeting Day’ during 10.00 AM to 1.00 PM every Wednesday with effect from 7th January, 2015 to listen to and to try and resolve the grievances of the members of the public.

A suitable feedback mechanism shall also be put in place by each cadre controlling Principal Chief Commissioner /Director General of Income Tax for offices under his control to record the number of grievances attended to and solved on every ‘public meeting day’, and to identify the deficiencies with a view to suggesting systemic changes required to avoid recurrence of delays in redressaI of grievances.

A report in this regard shall henceforth also be incorporated in their Monthly DO letters submitted to the Zonal Members concerned. It is expected that the above instructions will be adhered to without fail.

This issues with the approval of Chairperson, CBDT.

sd/-

(Dr.B.K.Sinha)
CIT(C&S), CBDT

Source Document from: www.incometaxindia.gov.in

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F.No. A-27017/01/2015-Ad.VI (A)
 Government of India
 Ministry of Finance
 Department of Revenue
 Central Board of Direct Taxes

New Delhi, dated 9th January, 2015

To
All Pr. Chief Commissioner of Income Tax,
All Director General of Income Tax,

Sub: Relaxation for purchase of Air-Tickets on TA (Transfer) from Private Agents – Regarding.

Sir/ Madam,
Kindly find enclosed herewith a copy of GM. of Ad.I Section of Department of Revenue bearing No. FTS No.110738/2014-Ad.I dated 31st December, 2014 alongwith its enclosure on the above mentioned subject for strict compliance by field offices.

Engl. as above.

Yours faithfully,

(Raju Kumar)
Under Secretary to the Govt. India

Finance Ministry orders on Relaxation for purchase of Air-Tickets on TA (Transfer) from Private Agents issued on 31.12.2014

FTS No.110738/2014-Ad.I
 Government of India
 Ministry of Finance
 Department of Revenue

New Delhi, dated the 31 December, 2014

OFFICE MEMORANDUM

Subject: Relaxation for purchase of Air-Tickets on TA (Transfer) from Private Agents – Regarding.

The undersigned is directed to refer to Department of Expenditure’s observation vide its ID Note dated 11.12.2014 (copy enclosed) regarding non-compliance of extant air travel guidelines by field formations of Department of Revenue despite the same being internally circulated by the Department in October, 2012.

2. It. has been observed by the Department of Expenditure that officers of field formations under Department; of Revenue continue to claim ignorance of the extant air travel guidelines with regard to prescribed procedure for purchase of air tickets from authorized travel, agents in respect of air journey performed by them. Department of Expenditure have sought clarification as to how Department of Revenue proposes to ensure that the air travel guidelines are complied with strictly in all its field formations so as to eliminate cases requiring relaxation of air travel guidelines due to ignorance of these instructions.

3. It is, therefore, requested that wide publicity should be given to air travel guidelines issued by Department of Expenditure from time to time in respective field formations of CBDT and CBEC.

(Ajay Kumar Nema)
Director (Hqrs.)

Ministry of Finance
 Department of Expenditure
 (E.IV Branch)

Ref. DoR FNo.339/TA/2013-02225;
DoE ID No.232472/2014 dated 20-08-2014.

The Department of Revenue(DoR) may refer to the proposal seeking relaxation of the guidelines on air travel with regard to prescribed procedure for purchase of air tickets from authorized travel agents only in respect of air journey performed by Shri Akhllesh Ranjan, JS(FT & TR-l) from Mumbai to Delhi on transfer wherein air tickets had been booked from unauthorized travel agent.

2. Further to this Department’s ID Note dated 20-08-2014, DoR may clarify as to how field formations under DoR continue to claim ignorance of the extant air travel guidelines even though these guidelines were internally circulated by DoR in October,2012 and how DoR proposes to ensure that the air travel guidelines are compiled with strictly in all its field formation so as to eliminate cases requiring relaxation of air travel guidelines due to ignorance of these instructions.

3. Further, DoR is advised to obtain a formal communication from Air India,as claimed by Shri Akhilesh Ranjan. JS(FT & TR-1) at para 4 on page 9/N (ante), that Air India is unable to verify the airfare charged by the unauthorized travel agent or indicate difference in the airfare, if any, after verification by Air India.

(A. Bhattacharya)
Under Secretary to the Government of India

Source Document: www.irsofficersonline.gov.in

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