Tag: CBDT chairman

CBDT Unveils Campaign to Aid Taxpayers in Reporting Foreign Assets for AY 2024-25

CBDT launches Compliance-Cum-Awareness Campaign for AY 2024-25 to assist taxpayers in accurately completing Schedule Foreign Assets and reporting income from foreign sources in ITR

The Central Board of Direct Taxes (CBDT) has launched a Compliance-Cum-Awareness Campaign for Assessment Year (AY) 2024-25 to assist taxpayers in accurately completing Schedule Foreign Assets (Schedule FA) and reporting income from foreign sources (Schedule FSI) in their Income Tax Returns (ITR). Compliance with Schedule FA and FSI is mandatory under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which requires the full disclosure of foreign assets and income.

As part of this campaign, informational messages will be sent via SMS and email to resident taxpayers who have already submitted their ITR for AY 2024-25. These messages are intended for individuals identified through information received under bilateral and multilateral agreements, suggesting that they may hold foreign accounts or assets, or have received income from foreign jurisdictions. The purpose is to remind and guide those who may not have fully completed Schedule Foreign Assets in their submitted ITR for AY 2024-25, especially in cases involving high-value foreign assets.

This initiative aligns with the vision of Viksit Bharat and highlights the Income Tax Department’s commitment to using technology to simplify taxpayer compliance and reduce human interaction. By leveraging data obtained through the Automatic Exchange of Information (AEOI), the department is working to create a more efficient, taxpayer-friendly system.

The CBDT expects all eligible taxpayers to take advantage of this opportunity to fulfil their tax responsibilities and contribute to the nation’s economic development. This effort not only is in line with the government’s vision for a developed India but also fosters a culture of transparency, accountability, and voluntary compliance.

For a detailed, step-by-step guide on completing Schedule Foreign Assets, taxpayers are encouraged to visit the official Income Tax Department website www.incometax.gov.in  where resources and support are readily available to assist them.

CBDT Issues New Compounding Rules to Shield Taxpayers from Prosecution

Income tax department on Thursday issued revised guidelines for compounding offences under the Income Tax law by simplifying the process and lowering the charges.

In conformity with the Finance Minister’s budget announcement on simplification and rationalisation of the compounding procedure, the Central Board of Direct Taxes (CBDT) issued revised guidelines for compounding of offences under the Income-tax Act, 1961.

Supersede All Existing Guidelines

CBDT said that the revised guidelines supersede all existing guidelines on the subject and would apply to pending as well as new applications, from the date of its issue. The revised guidelines are an additional step towards simplification of procedures aimed at promoting ease of compliance.

Reduction of Complexities and Simplification of Procedures

The guidelines are expected to facilitate the stakeholders by reducing complexities arising out of existing multiple guidelines, simplifying the compounding procedure and lowering the compounding charges.

Key Changes in the Guidelines

The guidelines have been simplified inter-alia by eliminating the categorisation of offences, removing the limit on a number of occasions for filing applications, allowing fresh application upon curing of defects which was not permissible under earlier guidelines, allowing compounding of offences under section 275A and 276B of the Act, removing the existing time limit for applying viz 36 months from the date of filing of the complaint, etc.

Facilitating Companies and HUFs in Compounding Offences

To facilitate the compounding of offences by companies and HUFs, the requirement of the main accused applying has been dispensed with.

Compounding of Offences by Main Accused and Co-Accused

The offences of the main accused as well as any or all co-accused can be compounded on payment of relevant compounding charges by the main accused and/or any of the co-accused, under the revised guidelines.

Rationalisation of Compounding Charges

The compounding charges have also been rationalised by abolishing interest chargeable on delayed payment of compounding charges, reducing rates for various offences such as for TDS defaults, multiple rates of 2%, 3% and 5% have been reduced to a single rate of 1.5% per month and basis for calculation of compounding charges for non-filing of return has been simplified.

Other Simplification Measures

Other simplification measures include the removal of the charge of a separate compounding fee from the co-accused.

Big relief for the taxpayers! CBDT has launched an e-Dispute Resolution Scheme (e-DRS), check details here

Good news for taxpayers: CBDT launches online mechanism to address income tax disputes

Here comes a big relief for the taxpayers. The Central Board of Direct Taxes (CBDT) has launched an e-Dispute Resolution Scheme (e-DRS) to address litigation and provide relief to eligible taxpayers. It should be noted that the Section 245MA of the Income Tax Act also provides for the constitution of Dispute Resolution Committees (DRC).

What is e-DRS?

The CBDT said the e-DRS enables the taxpayers to file an application electronically for dispute resolution to the Dispute Resolution Committees (DRC) designated for the region of Principal Chief Commissioner of Income Tax having jurisdiction over the taxpayer. 

How does e-DRS function?

The CBDT said the taxpayer can opt for e-Dispute Resolution against the ‘specified order’ as defined in clause (b) of section 245MA of the Act, which includes an order in which the aggregate sum of variations proposed or made does not exceed Rs 10 lakh and returned income for the relevant assessment year does not exceed Rs 50 lakh. Moreover, such order should not be based on search/surveys or information received under an agreement referred to under section 90 or 90A of the Act.

As per the e-DRS, a DRC may make modification to the variations in the specified order and decide to grant reduction/waiver of penalty and prosecution in accordance with the provision of rule 44DAC of the Income-tax Rules, 1962. 

How to file application for e-DRS?

The taxpayers can file application for e-DRS in Form No. 34BC referred in rule 44DAB of the Rules, on the e-filing portal of the Income Tax Department, within one month from the date of receipt of specified order. If the appeal has already been filed and is pending before the Commissioner of Income-tax (Appeals), the application for e-DRS, is to be filed on or before September 30, 2024. if any specified order has been passed on or before August 31, 2024 and the time for filing appeal against such order before CIT (Appeals) has not lapsed, the application for dispute resolution can be filed on or before September 30, 2024.

Ravi Agrawal Appointed CBDT Chairman: Key Role in CBDT Administration

Ravi Agrawal appointed CBDT chairman

Ravi Agrawal, a 1988-batch IRS officer, has been appointed as the new chairman of the Central Board of Direct Taxes (CBDT), the administrative body for the Income Tax Department.

He takes over from Nitin Gupta, a 1986-batch Indian Revenue Service officer, whose extended tenure as the chairman ends on June 30.

The new CBDT chief is currently working as Member (Administration) in the Board at present.

An official order said Agarwal will head the CBDT till June, 2025.

His scheduled retirement is in September this year but his appointment order said he will be on “reappointment on contract basis” till June 30 next year.

The CBDT is the apex policy making body for the Income-tax department.

The CBDT is headed by a chairman and can have six members who are in the rank of special secretary.