MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 5th August, 2022

S.O. 3705(E). – In exercise of the powers conferred by clause (XIII) of the first proviso to clause (x) of sub-section (2) of section 56 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the following conditions, namely:-

1. (i) the death of the individual should be within six months from the date of testing positive or from the date of being clinically determined as a COVID-19 case, for which any sum of money has been received by the member of the family;

(ii) the family member of the individual shall keep a record of the following documents, –

• (a) the COVID-19 positive report of the individual, or medical report if clinically determined to be COVID-19 positive through investigations in a hospital or an in­patient facility by a treating physician;
• (b) a medical report or death certificate issued by a medical practitioner or a Government civil registration office, in which it is stated that death of the person is related to corona virus disease (COVID-19).

2. Statement of any sum of money received by a member of the family of a deceased person from the employer of the deceased person or from any other person or persons, on account of death due to COVID-19 for the purposes of clause (XIII) of the first proviso to clause (x) of sub­section (2) of section 56 of the Income-tax Act, 1961 shall be verified and furnished in Form A.

3. The details of the amount received in any financial year shall be furnished in Form A to the Assessing Officer within nine months from the end of such financial year or 31.12.2022 whichever is later.

Form A:

Declaration

I, … … … … … … … … … … … … … (Name in full and in block letters) son/ daughter/ wife of … … … … … … … … …  do hereby declare that:

To the best of my knowledge and belief whatever is stated in the above columns including the documents attached supporting the statement is correct and complete.

I further declare that during the previous year……. mm/dd/yyyy the total amount received by me is solely on account of death of my family member due to COVID-19.

Place:
Date:

Yours faithfully,

Signature … … …
Name … … … …
Designation … … …

4. This notification shall be deemed to have come into force from the 1st day of April, 2020 and shall apply in relation to the assessment year 2020-2021 and subsequent assessment years.

[Notification No. 92/2022/ F. No. 370142/31/2022-TPL (Part-2)]

UMME FARDINA ADIL, Under Secy., Tax Policy and Legislation Division

Note : It is certified that no person is being adversely affected by granting retrospective effect to this notification

Tax Relief in the repercussion of Covid-19

The Finance Act, 2022 introduced amendments to Section 56 (2)(x) to provide tax relief to taxpayers to tide over the Covid-19 health crisis during the financial year 2019-20 and subsequent years. As per the amendment, the amount received from the employer or any well-wisher for COVID-19 treatment is tax-free. Further, money received by the family members from the employer or any other person in case of demise of a breadwinner of the family will be exempt from tax. There is no exemption limit if the money is received from the employer. But there is an exemption limit of Rs 10 lakh for money received from any other person.

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Documents to be submitted by Employees for Tax Relief in the repercussion of Covid-19 under Section 56 (2)(x): IT Notification No. 90/2022

CBDT specifies Documents to be submitted by Employees for Tax Relief in the repercussion of Covid-19 under Section 56 (2)(x) vide Notification No. 90/2022-Income Tax, Dated: 05.08.2022

Ministry of Finance
(Department of Revenue)
(Central Board of Direct Taxes)
NOTIFICATION

New Delhi, the 5th August, 2022

S.O. 3703(E). – In exercise of the powers conferred by sub-clause (c) of clause (ii) of the first proviso to clause (2) of section 17 of the Income-tax Act,1961 (43 of 1961), the Central Government hereby notifies the following conditions, namely:-

1. The employee shall submit the following documents to the employer, –

• (i) the COVID-19 positive report of the employee or family member, or medical report if clinically determined to be COVID-19 positive through investigations, in a hospital or an in-patient facility by a treating physician of a person so admitted;
• (ii) all necessary documents of medical diagnosis or treatment of the employee or his family member for COVID-19 or illness related to COVID-19 suffered within six months from the date of being determined as COVID-19 positive; and
• (iii) a certification in respect of all expenditure incurred on the treatment of COVID-19 or illness related to COVID-19 of the employee or of any member of his family.

2. This notification shall be deemed to have come into force from the 1st day of April, 2020 and shall apply in relation to the assessment year 2020-2021 and subsequent assessment years.

[Notification No. 90/2022/F. No. 370142/31/2022-TPL (Part-2)]
UMME FARDINA ADIL, Under Secy., Tax Policy and Legislation Division

Note: It is certified that no person is being adversely affected by granting retrospective effect to this notification

Tax Relief in the repercussion of Covid-19

The Finance Act, 2022 introduced amendments to Section 56 (2)(x) to provide tax relief to taxpayers to tide over the Covid-19 health crisis during the financial year 2019-20 and subsequent years. As per the amendment, the amount received from the employer or any well-wisher for COVID-19 treatment is tax-free. Further, money received by the family members from the employer or any other person in case of demise of a breadwinner of the family will be exempt from tax. There is no exemption limit if the money is received from the employer. But there is an exemption limit of Rs 10 lakh for money received from any other person.

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Notification No. 05 of 2022

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Directorate of Systems

New Delhi, dated : 29.07.2022

Subject: Reduction of time limit for verification of Income Tax Return (ITR) from within 120 days to 30 days of transmitting the data of ITR electronically – reg.

The Central Board of Direct Taxes (CBDT) vide Circular No. 3/2009 dated 21-05-2009 notified the new Income Tax Return (ITR) forms for Assessment Year 2009-10 and provided the facility of furnishing ITR in the following manner:

• i. Furnishing the return in paper form
• ii. Furnishing the return electronically under digital signature
• iii. Transmitting the data in the return electronically and thereafter submitting the verification of the return in form ITR-V to CPC within 30 days after transmitting the data electronically
• iv. Furnishing a bar coded return in paper form.

2. Further as per clarifications provided in para 9 of the said circular, the date of transmitting the data electronically will be the date of furnishing the return if the form ITR-V is submitted within 30 days after the date of transmitting the data electronically. In case, form ITR-V is submitted after the above-mentioned period, it will be deemed that the return in respect of which the form ITR-V has been filled was never submitted and it shall be incumbent on the assessee to electronically re-transmit the data and follow it up by submitting the new form ITR-V within 30 days. Later, the CBDT extended the time-limit for filing ITR-V to 120 days from the date of uploading the return of income. (Press Release dated 27.01.2010).

3. The CBDT vide Notification no. 02/2012/F.No.142/27/2011-SO (TPL) dated 04.01.2012, notified the Centralised Processing of Returns Scheme, 2011 (CPR Scheme 2011). Rule 14 of CPR Scheme 2011 delegates the power to specify the mode, manner and time for verification of ITR-V.

4. It has been decided that in respect of any electronic transmission of return data on or after the date this Notification comes into effect, the time-limit for e-verification or submission of ITR-V shall now be 30 days from the date of transmitting/uploading the return data is electronically.

5. It is clarified that where the return data is electronically transmitted before the due date on which this Notification comes into effect, the earlier time limit of 120 days would continue to apply in respect of such returns.

6. It is further clarified:

• (i) Where ITR data is electronically transmitted and e-verified/ITR-V submitted within 30 days of transmission of data – in such cases the date of transmitting the data electronically shall be considered as the date of furnishing the return of income.
• (ii) Where ITR data is electronically transmitted but e-verified or ITR-V submitted beyond the time-limit of 30 days of transmission of data – in such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow.

7. Duly verified ITR-V in the prescribed format and in the prescribed manner should be sent by speed post only to

Centralised Processing Centre,
Income Tax Department,
Bengaluru – 560500, Karnataka.

8. The date of dispatch of Speed Post of duly verified ITR-V shall be considered for the purpose of determination of the 30 days period, from the date of transmitting the data of Income-tax return electronically.

9. This Notification shall be applicable for electronically transmitted Income-tax return data filed on the e-filing portal (www.incometax.gov.in). This issues by the power conferred to the undersigned under the Rule 14 of Centralized Processing of Returns Scheme 2011 (CPR Scheme 2011) dated 04.01.2012, notified by the CBDT Notification No. 02/2012- F.No. 142/27/2011-SO(TPL).

10. This notification will come into effect from 01.08.2022.
11. Hindi version to follow.

(Govind Lal)
Director General of Income-tax(Systems)

Source: www.incometax.gov.in

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F.No.225/ 81/2022/ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes (ITA-II division)

North Block, New Delhi, the 03rd June, 2022

To

All Pr. Chief Commissioners of Income-tax/ Chief Commissioners of Income-tax
All Pr. Director Generals of Income-tax/ Director Generals of Income-tax.

Madam/Sir

Subject: Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2022-23 – procedure for compulsory selection in such cases -regarding.

Kindly refer to CBDT’s Guidelines dated 11.05.2022 on the above-mentioned subject (copy enclosed).

2. With reference to the above, I am directed to state that Sl.No.2 of para no.2 of CBDT’s Guidelines dated 11.05.2022 shall be substituted as under:

2. Cases pertaining to search & seizure/requisition

3. All other contents of the said Guidelines will remain unchanged.

4. The above may be brought to the notice of all concerned for necessary compliance.

Enclosure: As above

(Ravinder Maini)
Director (ITA-II), CBDT

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

NOTIFICATION

New Delhi, the 17th September, 2021

INCOME TAX

S.O. 3815(E). – In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that no deduction of tax shall be made on the following payment under section 194A of the said Act, namely payment in the nature of interest, other than interest on securities, made by a scheduled bank (hereinafter the “payer”) located in a specified area, to a member of Scheduled Tribe (hereinafter the “receiver”) residing in any specified area, as referred to in clause (26) of section 10 of the said Act, subject to the following conditions:

• (i) the payer satisfies itself that the receiver is a member of Scheduled Tribe residing in any specified area, and the payment as referred above is accruing or arising to the receiver as referred to in clause (26) of section 10 of the said Act, during the previous year relevant for the assessment year in which the payment is made, by obtaining necessary documentary evidences in support of the same;
• (ii) the payer reports the above payment in the statements of deduction of tax as referred to in subsection (3) of section 200 of the said Act;
• (iii) the payment made or aggregate of payments made during the previous year does not exceed twenty lakh rupees.

Explanation.- For the purposes of this notification, the expression “scheduled bank” shall have the same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934).

2. This notification shall come into force from the date of its publication in the Official Gazette.

[Notification No. 110/2021/F. No. 275/27/2021-IT(B)]

ARVIND KUMAR MISHRA, Under Secy.

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05 JULY 202

As per the Income-tax Act, 1961, there is a requirement to furnish Form 15CA/15CB electronically. Presently, taxpayers upload the Form 15CA, along with the Chartered Accountant Certificate in Form 15CB, wherever applicable, on the e-filing portal, before submitting the copy to the authorised dealer for any foreign remittance.

In view of the difficulties reported by taxpayers in electronic filing of Income Tax Forms 15CA/15CB on the portal www.incometax.gov.in, it had earlier been decided by CBDT that taxpayers could submit Forms 15CA/15CB in manual format to the authorized dealer till 30th June 2021.

It has now been decided to extend the aforesaid date to 15th July, 2021. In view thereof, taxpayers can now submit the said Forms in manual format to the authorized dealers till 15th July, 2021. Authorized dealers are advised to accept such Forms till 15th July, 2021 for the purpose of foreign remittances. A facility will be provided on the new e-filing portal to upload these forms at a later date for the purpose of generation of the Document Identification Number.

PIB

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F.No.225/126/ 2020/ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes (ITA-II division)

North Block, New Delhi,
the 11September, 2020

To

All Pr. Chief-Commissioners of Income-tax/ Chief-Commissioners of Income-Tax All Pr. Director-Generals of Income tax/ Director-Generals of Income-tax.

Subject: Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2020-21 – conduct of assessment proceedings in such cases – regarding.

Madam/ Sir

Kindly refer to the above.

2. Keeping in view of the Faceless Assessment Scheme, 2020 implemented by the Department and the difficulties being faced amid COVID-19 pandemic, the parameters for compulsory selection of returns for Complete Scrutiny during Financial Year 2020-21 and conduct of assessment proceedings in such cases are prescribed as under:

3. Without prejudice to the above, the cases which are selected for compulsory scrutiny by the International Taxation and Central Circle charges following the above prescribed guidelines, shall, as earlier, continue to be handled by these charges.

Also check: CBDT clarifies the TDS provisions on Mutual Fund dividend

4. . The exercise of selection of cases for compulsory scrutiny on the basis of the above parameters shall be completed by 30th September 2020.

5. These instructions may be brought to the notice of all concerned for necessary compliance .

-sd-

(Rajarajeswari R.)
Under Secretary-ITA.II, CBDT

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F.No.DIT (Inf)/ U-I/Misc.-1/ 2020-21/148
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
DIRECTORATE OF INCOME TAX (INFRA.)

Dated: 30.06.2020

To
All HoDs (Pr. CCsIT/Pr. DGsIT/CCsIT/ DGsIT/Pr. CsIT/Pr. DsIT/ CsIT/ADGs)

Madam /Sir,

Kind attention is invited to the O.M. issued by IFU vide F. No. 15/6/2008-IFU-III (EC) dated 15.09.2011 (Copy enclosed as Annexure-I) regarding delegated Financial Powers to the Head of Departments (HoDs). The partial modification of the OM F. No. 15/6/2008-IFU.III dtd.15.09.2011 was made vide OM under F. No. 14/11/2017-IFU (B&A) DT dated 16.08.2017 (Copy enclosed as Annexure-II).

2. As per the said OM, the financial powers upto Rs.60/90 lakhs per annum have been delegated to the Head of Departments of CBDT for ‘Outsourcing of Services” and all HoDs have to follow above OMs. However, several instances have come to the notice of CBDT wherein it has been noted that these OMs are not being followed and HODs are sanctioning expenditure on outsourcing of services beyond their delegated financial powers either by way of entering into fresh contracts or by extending the existing contracts. Subsequently when the ZAOs refuse to clear the bills for want of sanction of the competent authority, proposals are sent to the DIT(Infra) for seeking ex-post facto approval of the competent authority.

Further, in matter of sanctioning of works also, it has come to notice of CBDT that many times field authorities alter/add to the scope of originally sanctioned works beyond their delegated financial powers without prior approval of the competent authority. This has, at times, led to litigation between the contractor and the Department due to delayed payments for want of sanction of the competent authority resulting in levy of interest and cost by the courts.

Therefore, it is hereby reiterated that field authorities should not sanction expenditure pertaining to ‘Outsourcing of Services” or should not sanction works or add to the sanctioned works beyond their delegated financial powers without taking prior approval of the competent authority.

3. Moreover, it has been observed that proposals seeking ex-post facto approval of the competent authority in cases of renewal/revision of rent agreements, execution of works and outsourcing of services are being sent to this Directorate in a routine manner without any detailed reasons and valid justification for the delay in submitting such proposals. Such ex post facto approval cases are viewed very adversely by the higher authorities and the IFU.

4. Therefore, I am directed to hereby reiterate that field authorities should not award contracts for outsourcing of services or sanction works beyond the delegated financial powers and also submit the proposals well in time.

5. This is issued with the prior approval of Pr.DGIT (Admin. & TPS).

Encl: As above.

(H.Pradeep Rao)
Joint Secretary & Financial Adviser (Finance)

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04 FEB 2020

The Finance Bill, 2020 proposed to remove Dividend Distribution Tax (DDT) at the level of Company/ Mutual Fund and proposed to tax the same in the hands of share/ unit holder. It was also proposed to levy TDS at the rate of 10% on the dividend/ income paid by the Company/ Mutual Fund to its share/unit holder if the amount of such dividend/ income exceeds five thousand rupees in a Financial Year.

Also check: Budget 2020 – Personal Income Tax and tax simplification

Queries have been received to the effect that whether under the proposed section 194K, the Mutual Fund would be required to deduct TDS also on the capital gains arising on redemption of units. It is hereby clarified that under the proposed section, a Mutual Fund shall be required to deduct TDS @ 10% only on dividend payment and no tax shall be required to be deducted by the Mutual Fund on income which is in the nature of capital gains. Necessary clarification, if required, shall be proposed in the relevant provision of the law.

PIB

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22 AUG 2019

The Central Board of Direct Taxes (CBDT) has clarified today that small start-ups with turnover upto Rs. 25 crore will continue to get the promised tax holiday as specified in Section 80-IAC of the Income Tax Act, 1961 (the ‘Act’), which provides deduction for 100 per cent of income of an eligible start-up for 3 years out of 7 years from the year of its incorporation.

CBDT further clarified that all the start-ups recognised by DPIIT which fulfilled the conditions specified in the DPIIT notification did not automatically become eligible for deduction under Section 80-IAC of the Act. A start-up has to fulfil the conditions specified in Section 80-IAC for claiming this deduction. Therefore, the turnover limit for small start-ups claiming deduction is to be determined by the provisions of Section 80-IAC of theAct and not from the DPIIT notification.

CBDT dispelled the confusion created by some media report claiming discrepancy that the I-T law was yet to reflect DPIIT’s higher turnover threshold of Rs. 100 crore. CBDT said thatthere was no contradiction in DPIIT’s notification dated 19.02.2019 and Section 80-IAC of the I.T. Act, 1961 because in para 3 of the said notification, it has clearly been mentioned that a start-up shall be eligible to apply for the certificate from the Inter-Ministerial Board of Certification for claiming deduction under Section 80-IAC of the Act, only if the start-up fulfils the conditions specified in sub-clause (i) and sub-clause (ii) of the Explanation of Section 80-IAC. Therefore, the turnover limit for eligibility for deduction under section 80-IAC of the Act, as per the DPIIT’s notification is also Rs. 25 crore.

It is further stated that Section 80-IAC contains a detailed definition of the eligible start-up which, interalia, provides that a start-up which is engaged in the eligible business shall be eligible for deduction, if (i) it is incorporated on or after 1st April 2016, (ii) its turnover does not exceed Rs. 25 crore in the year of deduction, and (iii) it holds a certificate from the Inter-Ministerial Board of Certification.

It was explained that this was the major reason as to why there was a wide difference between the number of start-ups recognised by the DPIIT and the start-ups eligible for deduction under section 80-IAC of the Act. It is pertinent to state that Section 80-IAC was inserted vide Finance Act, 2016 as an exception to the Government’s stated policy of phasing out profit-linked deduction for promoting small start-ups during their initial year of operation. Since the intention was to support the small start-ups, the turnover limit of Rs. 25 crore was considered reasonable for granting profit linking deduction.

PIB

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