Schedule for Withdrawal of Currency Notes in Circulation issued prior to 2005

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The Reserve Bank of India (RBI) has announced the decision to withdraw from circulation all currency notes printedprior to 2005. It is a standard international practice to withdraw old series of banknotes from time to time. The reason for withdrawal of banknotesprinted prior to 2005 is to remove them from the market as they have fewersecurity features compared to banknotes printed after 2005. It is expected that this will preventcounterfeiting of banknotes. The RBI has already been withdrawing these notes from the market in aroutine manner through banks. In RBI’s view, the volume of the banknotes printed prior to 2005 today, still in circulation, is not significant enough to impact general public in a large way.

The schedule of withdrawal announced by RBI is as under:

i) All older series of banknotes issued prior to 2005 would be acceptable for all kinds of monetary transactions only till March 31, 2014.

ii) Thereafter the public will be required to approach bank branches which would provide them exchange facilities on a ongoing basis.

iii) From July 1, 2014 onwards, members of public can exchange any number of these old series notes from the bank branches where they have their account. However, non-customers would have to furnish proof of their identity and residence to the Bank to exchange more than 10 pieces of Rs. 500.00 and Rs. 1000.00 notes.

iv) These notes will continue to be legal tender and, therefore, no end date has been specified for the exercise.

This information was given by the Minister of State for Finance Shri Namo Narain Meen in written reply to a question in Lok Sabha today.

CBDT identifies Income Tax Return non-filers

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Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes

Dated 21^st February, 2014

PRESS RELEASE

The Income Tax Department had initiated a business intelligence project in February, 2013 to identify PAN holders who have not filed Income TaxReturn and about whom specific information is available in Annual Information Return (AIR), Central Information Branch (CIB) data and TDS/TCS Returns. In the first round of data matching, 12.19 lakh non-filers were identified. Letters have been sent in these cases by the Compliance Management Cell and Assessing officers seeking the response of the taxpayer. The results of this initiative is very encouraging and 5,36,220 returns have been received from the target segment. Self assessment tax of Rs.1017.87 Cr. and advance tax of Rs. 898.22 Cr. has also been paid by the target segment.

The Income Tax Department has now conducted the second round of data matching which has identified additional 21.75 lakh potential non-filers. The Department has sent letters to the 50,000potential non filers in the first batch. The information relating to the 21.75 lakh new non filers has been made available on the ‘Compliance Module’ on the e-filing portal of the Income TaxDepartment. The information will be shown only to the specific PAN holder when the PAN holder logs into e-filing portal at https://incometaxindiaefiling.gov.in. The PAN holder will be able to submit the response electronically and keep a printout of the submitted response for record purposes.

While the Government urges all tax payers to disclose their true income and pay appropriate taxes, the Tax Department would continue to pursue the non filers vigorously till all the high potential non filers are covered.

Parking spaces cannot be sold by the builder

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IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 2544 OF 2010

Nahalchand Laloochand Pvt. Ltd. 

Versus

Panchali Co-operative Housing Society Ltd.

CIVIL APPEAL NO. 2545 OF 2010

CIVIL APPEAL NO. 2546 OF 2010

CIVIL APPEAL NO. 2547 OF 2010

CIVIL APPEAL NO. 2548 OF 2010

CIVIL APPEAL NO. 2449 OF 2010

CIVIL APPEAL NO. 2456 OF 2010

Date : August 31, 2010

The Supreme Court has upheld thatorder of the Bombay High Court and held that parking spaces cannot be sold by the builder. They are a part of the common areas and the cost of that land has to be charged to all the flat-owners in proportion to their carpet area. (Nahalchand Laloochand P.Ltd. vs Panchali Co-operative Housing Society Ltd. – JT 2010 (9) SC 414: 2010 AIR SCW 5549).

In para. 34 of the aforesaid judgementthe Hon’ble Supreme Court held that:

“34. We have now come to the last question namely– what are the rights of a promoter vis-a-vis society (of flat purchasers) in respect of stilt parking space/s. It was argued that the right of the promoter to dispose of the stilt parking space is a matter falling within the domain of the promoter’s contractual, legal and fundamental right and such right is not affected. This argument is founded on the premise, firstly, that stilt parking space is a `flat’ by itself within the meaning of Section 2(a-1) and in the alternative that it is not part of `common areas’. But we have already held that `stilt parking space’ is not covered by the term `garage’ much less a `flat’ and that it is part of `common areas’. As a necessary corollary to theanswers given by us to question nos. (i) to (iii), it must be held that stilt parking space/s being part of `common areas’ of the building developed by the promoter, the only right that the promoter has, is to charge the cost thereof in proportion to the carpet area of the flat from each flat purchaser. Such stilt parking space being neither `flat’ under Section 2(a-1) nor `garage’ within the meaning ofthat provision is not sellable at all.”

Electronic filing of annexure-less return of net wealth

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Enabling provisions for facilitating electronic filing of annexure-less return of net wealth

1 Section 14 of the Wealth-tax Actprovides for furnishing of return of net wealth as on the valuation date in the prescribed form and verified in the prescribed manner setting forth particulars of the net wealth and such other particulars as may be prescribed. Currently, certain documents, reports are required to be furnished along with the return of net wealth under the provisions of Wealth-tax Act read with the provisions of Wealth-tax Rules.

2 Sections 139C and 139D of the Income-tax Act contain provisions for facilitating filing of annexure-less return of income in electronic form by certain class of income-tax assesses. In order to facilitate electronic filing of annexure-less return of net wealth, new sections 14A and 14B have been inserted vide Finance Act,2013 in the Wealth-tax Act on similar lines.

3 Consequently, the provisions of section 46 of the Wealth-tax Act which provide for rule making powers of the Board have also been amended.

4.  Applicability: - These amendments take effect from 1st June, 2013.

Amendment in the definition of Capital Asset wef A.Y. 2014-15

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Amendment in the definition ofCapital Asset

1 The provisions contained in clause (14) of section 2 of the Income-tax Act, 1961, before amendment by the Finance Act, 2013 define the term “capital asset” as property of any kind held by an assessee, whether or not connected with his business or profession. Certain categories of properties including agricultural land have been excluded from this definition. Sub-clause (iii) of clause (14) of section 2 provides that (a) agricultural land situated in any area within the jurisdiction of a municipality or cantonment board having population of not less than ten thousand according to last preceding census, or (b) agricultural land situated in any area within such distance not exceeding eight kilometers from the local limits of any municipality or cantonment board as notified by the Central Government having regard to the extent and scope of urbanization and other relevant factors, forms part of capital asset.

2 Item (b) of sub-clause (iii) of clause (14) of section 2 has been amended so as to provide that the land situated in any area within the distance, measured aerially (shortest aerial distance), (I) not being more than two kilometers, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometers, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh, shall form part of capital asset.

3 The expression “population” has also been defined to mean population according to the last preceding census of which the relevant figures have been published before the first day of the previous year.

4 Similar amendments are also carried out in clause (IA) of section 2 of the Income-tax Act, 1961 relating to the definition of “agricultural income” and in respect of the definition of “urban land” in the Wealth-tax Act, 1957.

5 Applicability – These amendments take effect from 1st April, 2014 and accordingly, apply in relation to Assessment year 2014-15 and subsequent assessment years.

Penalty u/s. 271FA for non-filing of Annual Information Return (AIR)

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Section 285BA of the Income-tax Act mandates furnishing of annual information return by the specified persons in respect of specified transactions within the time prescribed under sub-section (2) thereof. Sub-section (5) of the section empowers the Assessing Officer to issue notice if the annual information return has not been furnished by the due date.

Section 271FA of the income-tax Act, prior to its amendment by the Act, provided that if a person who is required to furnish an annual information return, as required under sub-section (1) of section 285BA of the Income-tax Act, fails to furnish such return within the time prescribed under that sub-section, the income-tax authority prescribed under the said sub-section may direct that such person shall pay, by way of penalty, a sum of one hundred rupees for every day during which the failure continues.

Section 271FA of the income-tax Act has been amended to provide that if a person who is required to furnish an annual information return, as required under sub-section (1) of section 285BA of the income-tax Act, fails to furnish such return within the time prescribed under sub-section (2) thereof, the income-tax authority prescribed under sub-section (1) of the said section may direct that such person shall pay, by way of penalty, a sum of one hundred rupees for every day during which the failure continues.

It is further provided that where such person fails to furnish the return within the period specified in the notice under sub-section (5) of section 285BA, he shall pay, by way of penalty, a sum of five hundred rupees for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the return expires.

Applicability - This amendment takes effect from 1st April, 2014

CBDT kept Revised PAN Allotment procedure in Abeyance

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Source – Press Release by Ministry of Finance Dated 30.01.2014

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Press Release by NSDL

Procedure for PAN application w. e. f. 03.02.2014

Central Board of Direct Taxes (CBDT), Ministry of Finance, Govt. of India, as informed vide press release dated December 30, 2014, has decided to keep in abeyance the decision to changeprocedure for PAN allotment till further orders. Accordingly, the guidelines issued by Income Tax Department (ITD) vide its letter ref no. F.No. oPAN/1/3/2003 /Part dated January 24, 2014, regardingself-attestation of documents and verification of these documents with original documents, has been put on hold till further orders.

However, the guidelines issued vide CBDT notification no. S. O. 3794(E) dated December 23, 2013 regarding changes in Rule 114(4) of Income Tax Rules, 1962  with regard to the listof Proof of Identity, Proof of Address and Proof of Date of Birth documents will be applicable from February 3, 2014.