8/2/2019 i Tax Mar 2012 Colour

http://slidepdf.com/reader/full/i-tax-mar-2012-colour 1/4This issue of V V is sponsored by Com. Rathnakar. ITO.Hospet 

INCOME TAX GAZETTED OFFICERS ASSOCIATION

Karnataka & Goa Unit, C.R. Building Annexe, Queen’s Road, Bangalore - 560 001.  e-mail: itgoaktkgoa@gmail.com

ITGOA ZINDABAD JCA ZINDABAD COC ZINDABAD

March 2012

K.A.JAMADAR Vice-President 9241342225

K.R.NARAYANA General Secretary 

8762300942

SHASHIDHAR S SHET President  9448660614

Dear comrades,

We are placing this issue of VV at the time when we

are approaching the new financial year and budget

for the next year is presented. The year passed by,

saw the longest ever agitation in pursuit of our

demands. While we have succeeded on certain

demands, other demands are yet to be met. Thatshall only strengthen our resolve to fight till we reach

the goal. While sharing news and views on many

issues, we eagerly wait for your critical suggestions.

Around 50 % of our members are working outside

Bangalore. Their active involvement is essential for

participative decision making in its true sense. In this

direction, the President, Vice-President and GeneralSecretary have made organizational tour to Hubli,

Belgaum, Panaji, Mangalore and met members.

Consultations were also held with members in other

stations. Accordingly, out-station members have

chosen their Vice-Presidents, Zonal Secretaries and

Regional Secretaries. This has further strengthened

the association. We wish them all the best and hope

they will scale further heights to serve the members

and the organization.

Further strength at Zonal and Regional levels

GREAT VICTORYst

Time Barring date restored to 31 Marchst

Right from day one, the association fought for restoring TB date to 31 March. There was no MC meeting or

General Body Meeting, which did not discuss this issue. The anguish and agony of members were articulated in

every fora. This sustained struggle has now yielded result. The Finance Bill 2012, has proposed to amend sectionst

153, to restore TB date to 31 March. We are very happy that the Hon'ble FM has acceded to our demand. We

thank him profusely. With this positive development, we are sure that the tension of our members will ease,

enabling them to do better investigations and pass wonderful/ quality orders to get more satisfaction andrecognition.

Com. K.A.Chandrakumar Vice-President

Com. Vijayakumar BudihalZonal Secretary, Panaji

Com Muralidhar NayakRegional Secretary, Mangalore

Com NavalgundRegional Secretary , Belgaum

Com. Sainathan Mudaliar Vice-President

Com Ramesh A JoshiZonal Secretary, Hubli

Com MarennaRegional Secretary, Gulbarga

Com Bhaskar Regional Secretary , Davanagere

Com G.SureshRegional Secretary, Mysore

Com S.K.Virginkar Regional Secretary, Panaji

K A CHANDRAKUMAR Vice-President 

SAINATHAN MUDALIAR Vice-President 

8/2/2019 i Tax Mar 2012 Colour

http://slidepdf.com/reader/full/i-tax-mar-2012-colour 2/4

Felicitation to Ex-All India President

Com B. Shanthikumar,  Ex-AllIndia President who has maderemarkable contribution to thew e l f a r e o f m e m b e r s f o rdecades was felicitated bySri K. Sathyanarayana CCIT,Bangalore on our behalf on

th15 Feb. 2012 at Bangalore.

B

S

H

A

N

T

H

I

K

U

M

A

R

= Bold

= Sportsman,

Singer, Strategist

= Handsome

= Association man

= Never dull

= Tidy

= Hard Working

= Intelligent

= Kreative

= Understanding

= Musician

= Artist

= oRator

Successful Walk out

New ACsIT

thThe national call of half day walk out on 28 February was

successfully observed in our charge by active participationof all members up to the level of Additional CITs. This

demonstrates their faith in and appreciation of the

Association for the concerted efforts in getting Ad-hoc JCIT

promotions, fighting resolutely in courts for their seniority

and for getting ACIT promotions. Red salutes to all

comrades for the unity exhibited.

The DPC for 204 posts of ACsIT was conducted by UPSC onth th

5 & 6 March. The minutes of DPC have since reached the

CBDT. Assurance has been given to our leaders, in theth

meeting on 13 March, that the promotion orders will be

issued very shortly. Meanwhile, our leaders have

requested the Board to call for the choice place(s) of 

posting and effect posting orders in the coming AGT. As

per unofficial information, following comrades from our

charge will get promotion:

1. Com. Anuradha

2. Com. Sajit Kumar

3. Com. Nagabhushana

4. Com. Nazeera Mohammed5. Com. R.L. Benakatti

6. Com. Shivaprasad Reddy

7. Com. V.Rajashekar

8. Com. R.Suresh

9. Com. Shivaprakash

10. Com. S. Lakshmi

11. Com Venkatappa

Hearty Congratulations and Best wishes to them for a

glittering career in the new cadre. Though their

promotions were inordinately delayed, our wishes will

reach them in advance.

Partial withdrawal of Agitation We are aware that some members are not happy about

relaxation of agitation. We only try to impress upon

them that, in such situations visions broader than

personal one are required to be taken by the Association

in the interest of all members. Understanding of the

process which took place before deciding to relax the

agitation may put the things in right perspective.

Before taking a decision on relaxation of agitation, the

CHQ had called for the views of all units. We had also

elicited views from VPs, ZSs and RSs from out-stations. Inth

the EC meeting held on 9 March, after considering all

pros and cons, our unit had suggested, ending the

agitation for the following reasons:

a. It is better to launch agitation under JCA banner.

b. We have to put all pressure on the Board for

conducting ad-hoc DPC for 207 posts. At the same

time it is better to end the stalemate.

c. We need to secure our interests in Cadre

restructuring.d. If agitation is ended by 15th, our members will get

some time to show better performance for the year.

However, we insisted that the reports of earlier months

should not be called and if the Board does not conduct

DPC for 207 AC posts, within reasonable time, we should

start fresh agitation under JCA banner. CHQ has

considered the views of all units. Our leaders met the

Chairman, Member (P&V) and other members, who have

assured to do their best in resolving all pending issues

including ACIT ad-hoc promotions. It was also assured to

issue ACIT Promotion Orders for 204 posts in March

2012 itself and take required actions for effecting ACIT

Ad-hoc promotions. In view of the positive actions and

written assurances, our national leaders decided to

withdraw the agitation partially. A detailed circular on

this matter has already been issued separately. We hope

the members have received it and concur with the

decisions taken by the association.

§AzÁAiÀ ÄÄÛ PÀ£À ßqÀ AiÀ ÄÄUÁ¢§gÀ°zÉ vÀ«Ä¼À Ä AiÀ ÄÄUÁ¢CAzÉà ªÀ Ä®AiÀ ÄgÀ AiÀ ÄÄUÁ¢

PÁAiÀ ÄÄwºÉªÀ Å £ÁªÀ Å “ªÀUÁðªÀuÉ”ºÁ¢D, C¸É¸ïªÉ ÄAmï UÁ¢F, £Á£ï-C¸É¸ïªÉ ÄAmï UÁ¢zÀQÌÃvÉà £À£ÀUÉ D UÁ¢ ?

J É̄  è®Æè vÀ ÄA©zÉ ªÀÄgÁé¢J É̄  èqÉAiÀ ÄÆ GAlÄ vÀUÁ¢

»r¢gÀ®Ä ¸ÀjAiÀ iÁzÀ ºÁ¢C£À Ä¢£ÀªÀ Ç À̧AvÀ¸ÀzÀ AiÀ ÄÄUÁ¢

You “UÁ¢”

This issue of V V is sponsored by Com. Rathnakar. ITO.Hospet 

8/2/2019 i Tax Mar 2012 Colour

http://slidepdf.com/reader/full/i-tax-mar-2012-colour 3/4

Highlights of Finance Bill 2012

The Finance Bill 2012 has proposedseveral amendments strengtheningenforcement machinery against taxevasion. The decision of the Hon'bleSupreme Court in Vodafone case andfavorable decision of Hon'ble KarnatakaHigh Court in Samsung case haveprompted certain clarifications. Many

amendments will take effect retrospectively requiring us to takeactions based on the changed Law . Some of its highlights arereported for the benefit our members.

1. - Explanation inserted for removal of  doubts and clarify that “property” includes any rights in or inrelation to an Indian company, including rights of management or control or any other rights whatsoever.

2. - Explanation 2 inserted to clarify that“transfer” includes disposing of or parting with an asset orany interest therein creating any interest in any asset in anymanner whatsoever, directly or indirectly, absolutely orconditionally, voluntarily or involuntarily, by way of anagreement (whether entered into in India or outside

India)…… Section 9 is also amended to clear any doubtsabout taxation of such transactions.

3. - Computer software and “process” of  transmission by satellite (including up-linking, amplification,conversion for down-linking of any signal), cable, optic fiberetc are now clearly brought under the tax net.

4. -For policies issued after 1-4-2012, if premiumpayable exceeds 10% of actual capital sum assured, thematurity amount from such policy would be taxable.

5. -says that exemptions u/s 11 & 12 shall not apply to theincome of a trust from the activity of trade, business etc foradvancement of any other object of general public utility.

6. - Though assessee has not deducted tax , if he is not

deemed to be an assessee in default under 201(1) as thepayee , who is a resident, has filed return of income and paidthe tax, disallowance u/s 40(a)(ia) can be made.

7. -Monetary limit raised to 1 crore for business and 25lakhs for profession-Instead of common date for submittingaudit report, i.e. 30th September, time given till due date forfiling the return.

8. The section now made applicable cases with turnover up to 1crore – However, with retrospective effect from AY 2011-12the section is made not applicable for Professions,Commission or Brokerage income and any Agency business .

9. -In cases where sale consideration is not ascertainableor cannot be determined the FMV , shall be deemed to bethe full value of the consideration.

10. -The exemption of CG in respect of transfer of agricultural land, which was till now applicable to individualis extended to HUF also.

11. In present section reference to VO can be made only if thevalue determined by the registered valuer is less than FMV.

12. -From 1-7-2012, the section amended to enablereferencing of cases to determining cost of acquisition alsoto VO

13. -Now the term “relative” with reference to HUF is also

defined to mean any of its member. w.r.t.from 1-10-2009

14. -Extended to Pvt Ltd company, when it receives any

consideration for issue of shares, if such consideration is in

excess of FMV of such shares.

2(14) Capital asset

2(47)-Transfer

9(1)(vi)-Royalty

10(10D)

13(8)

40 (a)(ia)

44AB

50D

54B

55A

56

56(2)

15. - made applicable for share application money, share

capital etc credited in the books of Pvt Ltd companies

unless, the said share holder offers satisfactory explanation

about the source of that investment.

16. - Insurance premium the deduction shall now be

restricted to 10% of the Capital Sum assured.

17. -No deduction for cash donations above Rs

10,000.

18. -Deduction for SB interest earned up to Rs 10000from Bank or Post office

19. - Sub-section 2A inserted to state that, even where there

is DTAA, Chapter X-A (A detailed chapter for General Anti

Avoidance Rule ) shall apply though that chapter is not

favorable to him. Further sub-section 4 introduced to make

production of certificate of residence mandatory for

claiming any relief under DTAA.

20. -Transfer pricing regulations made applicable even for

Specified domestic transactions u/s section 92BA.

21. -Tax rate increased to 20%- Made applicable even

for a NR entertainer( Three cheers to cheer girls)

22. - Additions u/s 68,69,69A to D shall be taxed at 30%-No deductions from such additions.

23. -Alternate Minimum Tax now extended to all other

Non –Company entities having adjusted total income

above 20 lakhs.

24. -Return filing made compulsory for a resident if he has

any, Asset located outside India or signing authority in any

account located outside India.

25. -Processing u/s 143(1) shall not be required once 143(2)

notice is issued- Third proviso introduced to say that

10(23C) shall not be allowed by an AO to a trust in respect of 

trading/business income, whether or not its approval is

withdrawn.26. :The restriction in first proviso about reopening of cases

concluded scrutiny shall not apply to income in relation to

any asset (including financial interest in any entity) located

outside India has escaped assessment- Explanation 2

amended to say that, where the assessee has failed to

furnish TP report or he is found to have any asset (including

financial interest in any entity) located outside India, it is

deemed that income has escaped assessment- Explanation

-4 introduced in section 147 to say that the amendments

made by Finance Act 2012 shall be applicable for AY 2012-

13 and all earlier AYs.

27. -If assessee is found to have any asset (includingfinancial interest in any entity) located outside India, it is

deemed that income has escaped assessment and the

reassessment notice can be issued even up to 16 years.

28. -From AY 2010-11 onwards and reassessment cases, the

time barring date extended up to 31st March-In cases

where reference is made calling for information under

DTAA, the time is presently extended by another 6 months,

now it is increased to 12 months.29. -Individual payee is presently exempted from TDS on

debenture interest if, it doesn't exceed 2500/- and paymentis by a/c payee cheque- This benefit is now extended toHUF-Monetary limit hiked to 5000/- .

68

80C

80G & GGA

80TTA

90

92

115BBA

115 BBE

115JC

139

143

147

149

153

193 

This issue of V V is sponsored by Com. Rathnakar. ITO.Hospet 

8/2/2019 i Tax Mar 2012 Colour

http://slidepdf.com/reader/full/i-tax-mar-2012-colour 4/4

To,Smt. / Sri

BOOK-POST

K.R.NarayanaGeneral Secretary

On behalf of Editorial Committee

30. -TDS Rate hike to 20% from present 10%.

31. -TDS on compensation for acquisition of immovable

property – monetary limit hiked to 2 lakhs.

32. -Buyer has to make TDS on sale consideration of land

or building (except agricultural land ) at 1% if transfer price

is 50 lakhs or more in specified cities and 20 lakhs or more in

other specified cities .

33. -Empowers CBDT to notify class of persons who are

paying any sum to NR, whether chargeable to tax or not, shall

apply to AO to determine sum chargeable .

34. - In cases where TDS return is not filed, action for

treating him in default for failure to deduct tax , can now to

taken up to six years from the end of FY. Presently it is 4 years.

35. -1% TCS imposed on coal or lignite or iron ore and

bullion/jewellery for cash of 2 lakhs and above.

36. -Any person of age 60 years is exempted from payment

of Advance Tax if he doesn't have income from business or

profession

37. -Till now, the TDS/TCS could have been reduced

from AT liability even if payment has not actually subjectedto TDS/TCS. Section is now amended to permit such

decrease only if TDS/TCS is actually made.

38. -Explanation 2 is inserted to clarify that this section

applies to AYs prior to 2003-04 also if the proceedings for

those years are completed after 1-6-2003.

39. -Levy of Rs 200 fee for each day of delay in filing TDS/

TCS returns. Applicable for returns filed on or after 1-6-2012 .

40. -Subsection 2A inserted to empower CIT to direct AO to

file appeal to ITAT against the Assessment order passed by

him in accordance with directions issued by DRP on the basis

of objections filed by the assessee after 1-7-2012.

41. -penalty in search cases-provides for 10% whereadmitted u/s 132(4), 20 % where NOT admitted u/s 132(4)

but return filed including that income & 30%-90% in all other

cases.

42. -From 1-7-2012 , for not furnishing TDS/TCS returns or

furnishing incorrect information. Penalty from 10000 to 1

lakh -No penalty if such returns are furnished with one year

from the prescribed date after payment of tax, interest and

FEE

43. (wrf 1-4-1976)-No need to issue separate warrants

u/s 132. it can be combined for more than one person.

Combined notice shall not be deemed as issued against

- Though warrant is combined one, the

assessments can be made separately on each person

mentioned in warrant.

44. -Asset definition u/s 2(ea)- Residential building allotted

by a company to employee or director whose annual salary is

less than 5 lakhs is exempt. This limit now hiked to 10 lakhs

Guest house

45. -Reassessment in respect of asset located outside India

 –time limits for reopening and other procedures same as in

IT Act

46. -Time barring dates extended to 31st March

194E

194LA

194LAA

195

201(3)

206C

207

209(1)(d)

234D

234E

253

271AAB

271H

292CC

AOP/BOI

WT

WT

WT

We miss him from AprilCom. P. Suleman, ITO Ward-2, Bellary ( 94488 50431)

“ We mustn't

allow what we can't do to interfere with what we can

do”.

“ Helping

is a warm feeling and it takes us near real GOD”

 th

Born on 10 March 1952, he joined our

Department as LDC in 1971. He was

promoted as ITI in 2001 and as ITO in

2008 and working in present post for last

2 years. Apart from Panaji, he has

worked in Gadag, Raichur, Davangereand Chitradurga. He enjoys reading, gets dissolved in the

nector of old Hindi songs and jumps for the superlative

strokes of Cricket. He strongly believes that

On the eve of his retirement, he has called upon

everyone to help the needy with the message

Happy

Retirement wishes to him, on behalf of entire ITGOA, KTK

& GOA.

This issue of V V is sponsored by Com. Rathnakar. ITO.Hospet 

With Best wishes for successful New Financial Year

& special thanks to Com. Rathnakar ITO, Hospet