TDS on accumulated provident fund payments: non PAN payees taxed at the standard non PAN rate under section 206AA, not maximum. The amendment omits the second proviso to Section 192A so that where a payee fails to furnish PAN in respect of an accumulated balance payment under the Employees' Provident Fund Scheme, tax will be deducted at the non PAN rate prescribed under section 206AA rather than at the maximum marginal rate; the exemption for payments below the monetary threshold remains unaffected and the change is effective from 1 April 2023.
Tax treaty relief: lower TDS on specified non-resident fund income where residency certificate is furnished under treaty. Amendment provides that TDS on payments to eligible non-residents for specified mutual fund units or specified company distributions shall be at the lower of the statutory rate and the rate under the applicable tax treaty, where the payee furnishes the required tax residency certificate; the change is effective from 1 April 2023.
Interest deduction limitation: proposed carve-out to exclude specified NBFCs from restrictions on interest deductibility under the Act. The Finance Bill proposes to amend the exclusion from the interest deductibility restriction so that nothing in sub section (1) shall apply to: (i) companies engaged in banking or insurance; or (ii) such class of non banking financial companies as may be notified by the Central Government, with "non banking financial company" adopting the Act's established definition and the amendment effective from 1 April 2024.
TDS compliance: failing to ensure tax on in kind benefits, VDAs and online winnings invites penalty and prosecution. Amendments add references to the first provisos of Section 194R and Section 194S and to subsection (2) of proposed Section 194BA into Section 271C (penalty) and Section 276B (prosecution), thereby making failure to deduct or to ensure payment of tax where benefits, virtual digital assets or online-game winnings are wholly or partly in kind subject to penalty equal to the tax not deducted or paid and to prosecution; drafting changes align language with parent TDS provisions and the amendments have staged commencements.
Penalty for false self-certification: reporting institutions face an additional levy and may recover amounts from account holders. A new sub section makes a prescribed reporting financial institution liable to an additional fixed monetary penalty when an inaccuracy in its statement of specified financial transactions or reportable accounts is due to false or inaccurate information submitted by the account holder; the penalty is imposed by the income tax authority prescribed for the reporting provision, and the reporting institution may recover the amount from or retain funds of the reportable account holder.
Reassessment limitation period: exclusion and deeming extend notice timelines for searches conducted late in the year. Amendments streamline reassessment by prescribing a three month deadline to furnish a return to a section 148 notice (subject to AO extension) and state that returns filed beyond that period will not be deemed returns under section 139. Section 149's limitation rules are preserved, with provisos excluding a fifteen day period from limitation computations and deeming notices arising from late year searches or requisitions to have been issued on the last day of the financial year. Section 151's specified authority list is clarified and the excluded/extended period must be counted when computing the three year threshold.
Power to amend directions for faceless and e-proceedings enables post-expiry modification by notification in Official Gazette. The Central Government may amend or modify directions issued for faceless schemes and e-proceedings after the originally prescribed time limits, by notification in the Official Gazette, where such directions were issued before the expiry of those limitation periods; the amendment power has specified commencement dates for different provisions.
Assessment time limits expanded to permit fuller scrutiny, align updated return treatment and extend search linked reassessment periods. The proposal amends section 153 to extend timeframes for completion of assessment and reassessment, align the period applicable to orders following updated returns, insert a new sub section to extend limitation periods where search under section 132 or requisition under section 132A is initiated or where seized material relates to the assessee, and to make existing timeline provisions applicable to revision orders passed by senior commissioners, with prospective commencement provided in the Bill.
Appeal filing period revised - time runs from receipt of the adjudicating authority's order at the IO or aggrieved party. The amendments shift the start of the appeal limitation period to the date an Adjudicating Authority's order is received in the office of the Initiating Officer or the aggrieved person, and they extend the same rule to orders under section 54A. They also modify the definition of High Court to provide jurisdictional clarity for non-resident appellants or respondents by designating the High Court where the Initiating Officer's office is located when no ordinary residence, business or gainful work place falls within any High Court's territory. Effective date: 1 April 2023.
Business reorganisation obligations require successors to file modified returns and compel Assessing Officers to align assessments with reorganisation orders. Section 170A requires successor companies affected by a business reorganisation to furnish a modified return in prescribed form and manner limited to the reorganisation order, enabling modification of predecessor returns. The Assessing Officer must, on receipt, modify completed assessments or assess/reassess pending proceedings in accordance with the reorganisation order and the modified return, with all other Act provisions applying and tax charged at the rate applicable to the relevant assessment year.
Search and seizure powers expanded to allow Board approved external experts and registered valuers to assist with valuation and data forensics. Amendments permit authorised officers during searches to requisition Board approved persons or entities, including digital forensic experts and registered valuers, to assist with search, valuation and data analysis, and require such valuers to submit prescribed fair market value reports to the authorised officer or Assessing Officer within the stipulated timeline; the law also defines execution of the last authorisation to link assessment timelines to the close of search proceedings.
Appeals to Appellate Tribunal broadened to include penalties by Commissioner (Appeals) and revision orders by senior commissioners. The amendment expressly permits appeals to the Appellate Tribunal against penalty orders imposed by Commissioner (Appeals) under recent penalty provisions, and permits appeals against revision orders by senior commissioners and related rectifications. It also broadens the right to file a memorandum of cross-objections so respondents may file cross-objections in all cases that may be appealed to the Appellate Tribunal, correcting the previous limitation to appeals originating only from Commissioner (Appeals).
Timeframe for transfer pricing document production shortened; limited extension remains to manage TP proceeding timelines. The amendment reduces the period to furnish transfer pricing information or documents to ten days from the date of a notice, with an available extension on application by the taxpayer not to exceed an additional thirty days; the Assessing Officer or the Commissioner (Appeals) may require such production in proceedings concerning international transactions or specified domestic transactions. The change is aimed at streamlining timelines for examination of submitted material and takes effect from 1st April, 2023.
Joint Commissioner (Appeals) authority created to hear specified first appeals with transfer, rehearing and scheme-based procedural powers. Introduction of a Joint Commissioner (Appeals) as a first appellate authority for specified orders of Assessing Officers below Joint Commissioner rank, vested with powers similar to Commissioner (Appeals). The proposal lists appealable orders (assessment, reassessment, withholding/collection intimations, penalty and rectification amendments), permits transfers of pending appeals between Commissioner (Appeals) and Joint Commissioner (Appeals) with rehearing rights, allows the Government to notify a Scheme to streamline procedures and remove direct interface technologically, and empowers the Board to exclude cases or classes; consequential definitional amendments align the new office.
Extension of time for settlement procedures to allow interim boards more time to dispose rectification applications. The Finance Act, 2021 abolished the Settlement Commission retrospectively from 01.02.2021 and authorized Interim Boards for Settlement to handle pending applications; clause (iv) of sub section (9) of section 245D excluded the period from 01.02.2021 until constitution of the IBS from time limit computation and assured a minimum remaining period, and the Finance Bill, 2023 proposes substituting that clause to extend specified expiring time limits to 30.09.2023 with retrospective effect from 01.02.2021 to allow IBS additional time for disposing rectification and amendment applications.
Cost of acquisition deemed nil for certain intangible assets, altering capital gains computation and taxability. Amendment treats the cost of acquisition and cost of improvement of capital assets that are intangible assets or other rights for which no consideration was paid as Nil for computing capital gains, clarifying that assets not covered by existing enumerated provisions shall have no cost basis, and thereby resolving judicial uncertainty about taxability of gains on such transfers. The amendment applies prospectively from the Bill's stated effective date and to subsequent assessment years.
Prevention of double deduction: interest claimed under house property or chapter VIA excluded from cost of acquisition for capital gains. The Finance Bill proposes a proviso to section 48 that the cost of acquisition or cost of improvement shall exclude any interest amount claimed as a deduction under section 24 or under Chapter VIA, to prevent double deduction when computing capital gains.
Capital gains computation for joint development agreements clarified to include consideration received by any mode, aligning with TDS rules. Amendment clarifies that for capital gains under section 45(5A) on transfers under joint development agreements, the full value of consideration equals the stamp duty value of the assessee's share increased by any consideration received in cash, by cheque or draft, or by any other mode, aligning the computation with the TDS treatment under section 194-IC and addressing taxpayer misinterpretation.
Taxation of high-premium life insurance policies: exempt on death, otherwise taxable under other sources with premium deduction available. Policies other than unit linked insurance policies issued on or after 1 April 2023 will lose exemption under clause (10D) if premium payable in any previous year during the policy term exceeds the prescribed threshold; death receipts remain exempt. For multiple policies issued on or after that date, exemption applies only where the aggregate premium does not exceed that threshold in any year. Non-exempt sums (including bonuses) will be taxable under the head "Income from Other Sources" with computation rules and a deduction for premium allowed only if not earlier claimed.
Inventory valuation can be directed to a cost accountant, with mandated report, government-paid expenses, and hearing rights preserved. Tax authorities may direct an assessee to obtain inventory valuation by a cost accountant nominated by the senior commissioner; the assessee must furnish a prescribed signed valuation report. Valuation expenses and incidental costs, including the cost accountant's remuneration, will be determined by the senior commissioner under prescribed guidelines and paid by the Central Government. Except for assessments under section 144, the assessee must be given an opportunity to be heard on material derived from such valuation. Consequentially, the valuation period is excluded from limitation computations and rules may prescribe the report form and particulars.
Facility of Form SAHAJ (ITR-1) - List of person who are eligible and who are not eligible to avail the facility of simple ITR form - For the AY 2019-20
5 April, 2019
Contents
Acts
Rules & Regulations
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
ITR form eligibility limited to resident individuals with salary, single house and non lottery other income; foreign interests excluded. Form SAHAJ (ITR 1) is available only to resident individuals whose taxable income arises solely from salaries or family pension, income from a single ... Summary
ITR form eligibility limited to resident individuals with salary, single house and non lottery other income; foreign interests excluded.
Form SAHAJ (ITR 1) is available only to resident individuals whose taxable income arises solely from salaries or family pension, income from a single house property without brought forward or current losses under that head, and other sources excluding lottery winnings and race horse income, provided they do not fall into disqualifying categories such as foreign assets, foreign income or signing authority, income requiring apportionment, directorships, unlisted equity shareholdings, tax assessed on income with TDS in another person's hands, claims for double taxation relief, specified deductive claims, agricultural income above a small threshold, or total income above the prescribed upper limit.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 123 
