Section 285BA of the Income Tax Act, 1961 read with Rule 114E requires certain specified reporting persons to furnish statement of financial transaction (SFT return) for certain transaction entered in the financial year

Legal Framework

Section 285BA of the Income Tax requires specified reporting persons to furnish statement of financial transaction. Rule 114E of the Income Tax Rules, 1962 specifies that the statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in Form No. 61A.

Who is a Reporting Entity?

Reporting Entity or Reporting Person is an entity which is required to furnish a Statement of Financial Transaction (in Form 61 A) or Statement of Reportable Account (in Form 61B) with the Income Tax Department as per the provisions of section 285BA of the Income Tax Act 1961. Also, Under Rule 114D of IT rules 1962, any entity/person receiving Form 60 is required to report details of Form 60 in Form 61.

Which all persons or entities are  are required to file SFT ? 

  • Person liable for audit u/s 44AB of the Income Tax Act
  • Banking Company
  • Co-operative Bank
  • Post Master General of Post office
  • Nidhi company referred u/s 406 of the Companies Act 2013
  • NBFC(Non-banking Financial Company)
  • Company or Institution issuing bonds or debentures
  • Company issuing shares
  • Listed Company (listed on a recognised stock exchange) purchasing its own securities u/s 68 of Companies Act 2013
  • Trustee of a Mutual Fund or such other person managing the affairs of the MF
  • Authorized Person under FEMA(Dealer, Money Changer, Off-shore Banking Unit or any other person defined in FEMA, 1999)
  • Inspector-General/Registrar/ Sub-Registrar appointed under Registration Act, 1908
  • Banking company or a co-operative bank or any other company or institution issuing a credit card

 

Is filling  Mandatory for  NIL Statement?

No. However it is advisable to submit ‘SFT Preliminary Response’.

What are the form under Section 285BA ?

There are three forms namely Form 61, 61A and 61B.

Form61: Details of Form 60 submitted by transacting parties not having PAN

Form 61A: Statement of financial transactions (SFT)

Form61B: Statement of reportable accounts (SRA)

what are specified financial transactions ? 

Specified Person Type of transaction Amount Value(Rs.)
Person liable for audit u/s 44AB of the Income Tax Act Sale by any person, of goods or service of any nature Receipt of cash exceeding Rs. 2 lakhs
Banking Company or  Co-operative Bank Payment made in cash for the purchase of :
– Bank Draft’s
– Pay orders(PO), –Banker’s Cheque
– Pre-paid instrument issued by RBI 
Aggregating Rs. 10 lakhs or more in a financial year.
–> Cash deposit or cash withdrawals(including bearer’s cheque) Aggregating Rs. 50 lakhs or more in a financial year ,from one or more current account of a person.
Banking Company or Co-operative Bank or Post Master General Cash Deposit(other than current account and time deposit) of a person Aggregating to Rs.10 lakh or more in one or more accounts
Banking Company or Co-operative Bank or  Post Master General or
Nidhi company or 
NBFC
One or more time deposits(other than one made through renewal of another time deposit) of a person  Aggregating to Rs.10 lakh or more in a financial year
Company or Institution issuing bonds or debentures Receipt from any person for acquiring debenture/bonds issued by company/institution(other than amount received for renewal of the bond/debenture issued) Amount aggregating Rs. 10 lakhs or more in a financial year
Company issuing shares Receipt from any person acquiring shares(including share application money) issued by company  Amount aggregating Rs. 10 lakhs or more in a financial year
Listed Company (listed on a recognised stock exchange) purchasing its own securities u/s 68 of Companies Act 2013 Buyback of shares from any person (other than shares bought in open market) Amount or value aggregating to Rs. 10 Lakhs or more in a financial year
Trustee of a Mutual Fund or such other person managing the affairs of the MF Amount received for acquiring units of one or more schemes of mutual fund(other than amount received on account of tranfer from one scheme to another) Receipt from any person of an amount aggregating to Rs. 10 lakhs or more in a financial year 
Authorized Person under FEMA(Dealer, Money Changer, Off-shore Banking Unit or any other person defined in FEMA, 1999) Receipt from any person from sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through credit or debit card or through issue of travellers cheque or draft or any other instrument Aggregate amount to  10 Lakh or more in a financial year
Inspector-General/Registrar/ Sub-Registrar appointed under Registration Act, 1908 Purchase or sale by an person of immovable property  Amount of Rs. 30 lakh or more or valued by stamp duty valuation authority referred to in section 50C at Rs. 30 lakh or more
Banking company or a co-operative bank or any other company or institution issuing a credit card Payment made by any person, against bills raised in respect of one or more credit card issued to that person   Aggregate amount of

  1. Rs. 1 lakh or more in cash 

Or

  1. Rs. 10 lakh or more by any other mode
Banking Company or Co-operative Bank or Postmaster General Cash deposits during 09th November, 2016 to 30th December, 2016 Amount aggregating to 

  1. Rs. 12.50 lakh or more, in one or more current account of a person
  2. Rs. 2.50 lakh or more, in one or more accounts (other than a current account) of a person
Banking Company or Co-operative Bank or Postmaster General Cash deposits during 01st April, 2016 to 09th November, 2016 In respect of accounts that are reportable in the just above point.

The first step in preparation of Statement of Financial Transactions (SFT) is to identify transactions/persons/accounts which are reportable under Rule 114E. In the second step, the reporting person/entity is required to submit details of transactions/persons/accounts which are determined as reportable.

Aggregation Rule

Aggregation rule needs to be applied for specified transaction types to identify transactions/persons/accounts which are reportable. Rule 114E specifies that the reporting person shall, while aggregating the amounts for determining the threshold amount for reporting in respect of any person –

(a) Take into account all the accounts of the same nature maintained in respect of that person during the financial year;
(b) Aggregate all the transactions of the same nature recorded in respect of that person during the financial year;
(c) Attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons, in a case where the account is maintained or transaction is recorded in the name of more than one person;

The aggregation rule is applicable for all transaction types except SFT- 012 (Purchase or sale of immovable property) and SFT- 013 (Cash payment for goods and services).

 

what is the Due date to file Form 61A ?

he statement of the financial transaction shall be furnished on or before the 31st May immediately following the financial year 

What is the penalty for not filing?

If a person required to furnish a statement of financial transaction under section 285BA fails to furnish such statement :

  1. Within the time prescribed – Such person shall liable to pay the penalty u/s 271FA of Rs. 500 for every day during which such failure continues.
  2. After issuing of notice to file a statement under section 285BA – Such person shall be liable to a penalty u/s 271FA, of Rs. 1000 per day starting from the day immediately following the day on which the time specified in the notice for furnishing statement expires till the the day failure continues.
    If a person to whom a notice is issued to file the statement then such person is required to file such a statement within 30 days from the date of service of such notice

What is the Procedure to Submit SFT ? 

  • Login to the e-filing portal and go to my account, then move to Manage ITDREIN (Income Tax Department Reporting Entity Identification Number)
  • Click and ‘Generate New ITDREIN.’
  • Select the type of form and Reporting entity category and then Click and Generate ITDREIN.
  • Then an ITDREIN will be generated and also a confirmation email, and SMS will be sent to the registered email id and mobile number, respectively.
  • The generated ITDREIN will appear under My Account
  • Upload Form X along with the Digital Signature.
  • Verify by entering PAN no, Form Name, Financial Year, Reporting entity category, Half-year, upload type, etc.
  • The uploaded file will either get accepted or rejected.

https://www.incometaxindia.gov.in/forms/income-tax%20rules/itform61anew.pdf

 

Government of India
Ministry of Finance
Department of Revenue
New Delhi, the 08th April, 2020
PRESS NOTE
In the context of the COVID-19 situation and with a view to provide immediate relief to the
business entities and individuals, it has been decided to issue all the pending income-tax
refunds up to Rs. 5 lakh, immediately. This would benefit around 14 lakh taxpayers. It has
also been decided to issue all pending GST and Custom refunds which would provide benefit
to around 1 lakh business entities, including MSME. Thus, the total refund granted will be
approximately Rs. 18,000 crore.

February 24, 2020

How to calculate income tax?

Will you be filing ITR for the first time in 2020? You first need to know your total taxable income, followed by the computation of income tax as per the applicable tax slab. While calculating income tax manually might appear daunting, it isn’t as complicated if you thoroughly understand the computation process.

Every individual under 60 years with an annual income of more than Rs 2.5 lakh is required to file Income Tax Return (ITR) as per the Income Tax Act. For seniors between 60 and 80 years, this limit is above Rs 3 lakh, and for super seniors above 80 years, it is above Rs 5 lakh. In fact, even people falling under the nil tax bracket are advised to file ITR.

To successfully and accurately file ITR, one should first know his/her total taxable income for the year. The annual income will decide the tax slab an individual falls under and the rate at which the tax will be calculated. So, how to calculate income tax? Here are the things you should know.

Different sources of income

According to the IT Act, an individual can have five different sources of income. They are:

  • Salary – Income earned through salary
  • House property – Generally consists of rental income earned from house property
  • Business or profession – Income earned from business or profession
  • Capital gains – Long-term and short-term capital gains from the sale of capital assets
  • Other sources – All the other incomes, like interest, dividends, taxable gifts, etc. that cannot be categorised under the four sources listed above

Any income an individual earns can only be categorised under these five sources.

Computing gross total income and claiming deductions

The Gross Total Income (GTI) is calculated by setting off any losses under any of the income heads and then adding the income from all the five sources. Once you have the GTI, the next step is to claim relevant deductions from the income.

Chapter VI-A of the IT Act offers a wide range of deductions from Section 80C to Section 80U. You can claim deductions under relevant sections, and this will help you reduce your GTI and the income tax you are required to pay.

Understanding income tax slabs

The GTI left after claiming deductions will be your total taxable income for the year. Income tax slabs in India are divided based on income in the financial year. The income range also differs for different age groups. There are three different age groups:

  • Under 60 years
  • Between 60 and 80 years
  • Above 80 years

For instance, for an individual under 60 years, the tax slabs are as follows:

Tax slabsTax rates
Annual income of up to Rs 2.5 lakhNil
Annual income between Rs 2.5 lakh and Rs 5 lakh5% tax on the income above Rs 2.5 lakh + 4% cess
Annual income between Rs 5 lakh and Rs 10 lakhRs 12,500 + 20% tax on the income above Rs 5 lakh + 4% cess
Annual income above Rs 10 lakhRs 1,12,500 + 30% tax on the income above Rs 10 lakh + 4% cess

Based on your total taxable income and income tax slab, you can calculate your tax liability. For instance, if your taxable income is Rs 800,000, income tax computation will be as follows:

Taxable incomeRs 8,00,000
Income tax on income of up to Rs 2.5 lakhRs 0 (nil income tax for income of up to Rs 2.5 lakh)
Income tax on income from Rs 2.5 lakh to Rs 5 lakhRs 12,500 (5% of Rs 2.5 lakh as income is above Rs 5 lakh)
Income tax on income between Rs 5 lakh and Rs 10 lakhRs 60,000 (20% of income above Rs 5 lakh, which is Rs 3 lakh in this case)
Total income tax liabilityRs 72,500

There is also a 4% cess applicable to the tax amount. So, the total tax liability of an individual with a taxable income of Rs 8 lakh is Rs 75,400 [Rs 72,500 + Rs 2,900 (4% of Rs 72,500)].

Filing ITR

Now that you know how income tax is calculated, the next step is to file ITR. By filing ITR, you will know whether you are eligible for a tax refund or need to pay additional taxes. You can compare your income tax liability with the income tax already paid in the form of Tax Deducted at Source (TDS)/Tax Collected at Source (TCS), advance tax or self-assessment tax.

If the total tax paid is higher than your tax liability, you will be eligible for a tax refund. If the tax liability is higher than what is already paid, you can pay the difference while filing ITR.

Calculating your income tax liability

While the manual calculation of income tax is manageable if you have a single source of income and not claiming deductions, things can get challenging for multiple income sources and deductions. In such cases, you can consider using an online income tax calculator.

The calculator will allow you to add income from all the different sources and claim all the relevant deductions, making it easier for you to know your income tax liability. Moreover, the calculation will also be quick and free from errors that manual calculations are generally prone to.

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient’s own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. ‘lClCl ‘ and the ‘I-man’ logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited

https://www.icicibank.com/blogs/taxation/how-to-calculate-income-tax.page?

Perform the following steps to view or download the Form-26AS from e-Filing portal:

  1. Logon to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
  2. Go to the ‘My Account’ menu, click ‘View Form 26AS (Tax Credit)’ link.
  3. Read the disclaimer, click ‘Confirm’ and the user will be redirected to TDS-CPC Portal.
  4. In the TDS-CPC Portal, Agree the acceptance of usage. Click ‘Proceed’.
  5. Click ‘View Tax Credit (Form 26AS)’
  6. Select the ‘Assessment Year’ and ‘View type’ (HTML, Text or PDF)
  7. Click ‘View / Download’
    Note
    To export the Tax Credit Statement as PDF, view it as HTML > click on ‘Export as PDF’. ​

Go to https://incometaxindiaefiling.gov.in​ ​​​​​

e-Filing of ITR

The user can file the Income Tax Return (ITR) in two ways:

1. Offline: Download the applicable ITR, fill the form offline, save the generated XML file and then upload it.

To e-File the ITR using the upload XML method, the user must download either of the following ITR utility:

  • Excel Utility
  • Java Utility

Perform the following steps to download the Java Utility or Excel Utility, then to generate and Upload the XML:

  1. Go to the Income Tax e-Filing portal www.incometaxindiaefiling.gov.in
  2. Download the Appropriate ITR utility under ‘Downloads > IT Return Preparation Software’.
  3. Extract the downloaded utility ZIP file and Open the Utility from the extracted folder. (For more information and prerequisites, refer the ‘Read me’ document).
    Note : System Requirements
    Excel Utilities: Macro enabled MS-Office Excel version 2007/2010/2013 on Microsoft Windows 7 / 8 /10 with .Net Framework (3.5 & above)
    Java Utilities: Microsoft Windows 7/8/10, Linux and Mac OS 10.x with JRE (Java Runtime Environment) Version 8 with latest updates.
    To Enable Macros in Excel Go to > File > Options > Trust Centre > Trust Centre Settings > Macro Settings > Enable All Macro > Click ‘OK’ button twice to save these settings.
  4. Fill the applicable and mandatory fields of the ITR form.
    Note :
    Pre-filled XML can be downloaded post login to the e-Filing portal from ‘My Account > Download Pre-Filled XML’ and can be imported to the utility for prefilling the personal and other available details.
  5. Validate all the tabs of the ITR form and Calculate the Tax.
  6. Generate and Save the XML.
  7. Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’.
  8. Click on the ‘e-File’ menu and click ‘Income Tax Return’ link.
  9. On Income Tax Return Page:
    • PAN will be auto-populated
    • Select ‘Assessment Year’
    • Select ‘ITR form Number’
    • Select ‘Filing Type’ as ‘Original/Revised Return’
    • Select ‘Submission Mode’ as ‘Upload XML’
  10. Choose any one of the following option to verify the Income Tax Return:
    • Digital Signature Certificate (DSC).
    • Aadhaar OTP.
    • EVC using Prevalidated Bank Account Details.
    • EVC using Prevalidated Demat Account Details.
    • Already generated EVC through My Account  Generate EVC Option or Bank ATM. Validity of such EVC is 72 hours from the time of generation.
    • I would like to e-Verify later. Please remind me.
    • I don’t want to e-verify this Income Tax Return and would like to send signed ITR-V through normal or speed post to “Centralized Processing Center, Income Tax Department, Bengaluru – 560500”
  11. Click ‘Continue’
  12. Attach the ITR XML file.
    On choosing,
    • DSC as verification option, Attach the signature file generated from DSC management utility.
    • Aadhaar OTP as verification option, Enter the Aadhaar OTP received in the mobile number registered with UIDAI.
    • EVC through Bank account, Demat account or Bank ATM as verification option, Enter the EVC received in the mobile number registered with Bank or Demat Account respectively.
    • Other two verification options, the ITR will be submitted but the process of filing the ITRs is not complete until it is verified. The submitted ITR should be e-Verified later by using ‘My Account > e-Verify Return’ option or the signed ITR-V should be sent to CPC, Bengaluru.
  13. Submit the ITR.
  14. To view the uploaded ITRs

2. Online: Enter the relevant data directly online at e-filing portal and submit it. Taxpayer can file ITR 1 and ITR 4 online.

  1. Go to the Income Tax e-Filing portal, www.incometaxindiaefiling.gov.in
  2. Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’.
  3. Click on the ‘e-File’ menu and click ‘Income Tax Return’ link.
  4. On Income Tax Return Page:
    • PAN will be auto-populated
    • Select ‘Assessment Year’
    • Select ‘ITR Form Number’
    • Select ‘Filing Type’ as ‘Original/Revised Return’
    • Select ‘Submission Mode’ as ‘Prepare and Submit Online’
  5. Click on ‘Continue’
  6. Read the Instructions carefully and Fill all the applicable and mandatory fields of the Online ITR Form.Note :
    To avoid loss of data/rework due session time out, Click on ‘Save Draft’ button periodically to save the entered ITR details as a draft. The saved draft will be available for 30 days from the date of saving or till the date of filing the return or till there is no change in the XML schema of the notified ITR (Whichever is earlier).
  7. Choose the appropriate Verification option in the ‘Taxes Paid and Verification’ tab.
    Choose any one of the following option to verify the Income Tax Return:
    • I would like to e-Verify
    • I would like to e-Verify later within 120 days from date of filing.
    • I don’t want to e-Verify and would like to send signed ITR-V through normal or speed post to “Centralized Processing Center, Income Tax Department, Bengaluru – 560 500” within 120 days from date of filing.
    • Click on ‘Preview and Submit’ button, Verify all the data entered in the ITR.
    • ‘Submit’ the ITR.
    • On Choosing ‘I would like to e-Verify’ option, e-Verification can be done through any of the following methods by entering the EVC/OTP when asked for.
      • EVC generated through bank ATM or Generate EVC option under My Account
      • Aadhaar OTP
      • Prevalidated Bank Account
      • Prevalidated Demat Account
      Note
      On Choosing the other two verification options, the ITR will be submitted but the process of filing the ITRs is not complete until it is verified. The submitted ITR should be e-Verified later by using ‘My Account > e-Verify Return’ option or the signed ITR-V should be sent to CPC, Bengaluru.
    • The EVC/OTP should be entered within 60 seconds else, the Income Tax Return (ITR) will be auto-submitted. The submitted ITR should be verified later by using ‘My Account > e-Verify Return’ option or by sending signed ITR-V to CPC.
    • To view the uploaded ITRs ​​

Go to https://incometaxindiaefiling.gov.in

Prerequisite for Individual Users

Before taxpayers start registration, ensure the following details should be hand-in-hand.

  1. Valid PAN
  2. Valid Mobile Number
  3. Valid Current Address
  4. Valid Email Address, preferably your own

Registration Process

Perform the following steps to register as an ‘Individual User’:

  1. Visit the ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
  2. Click ‘Register Yourself’ button located at right side of the Home Page.
  3. Select the user type as ‘Individual’. Click Continue
  4. Provide the following basic details:
    • PAN
    • Surname, First Name and Middle Name
    • Date of birth
    • Residential Status
  5. Click ‘Continue’
  6. Fill in the following mandatory details:
    • Password Details
    • Contact Details
    • Current Address
    • Click ‘Submit’
  7. After registration,
    For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at the time of registration.
    For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.
  8. Enter the correct OTP to complete the registration process

2) Prerequisite for HUF

The user must have the following mandatory details:

  1. Valid PAN Card
  2. Valid Mobile Number
  3. Valid Email Address, preferable belonging to KARTA*

*Karta means senior most male member in the family. He is the person who takes care of day to day expenses of the family looks after the family and protects the joint family properties. No outsider or stranger can become a Karta.

Registration Process

Perform the following steps to register as a ‘HUF User’:

  1. Visit the ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
  2. Click ‘Register Yourself’ button located at right side of the Home Page.
  3. Select the user type as ‘Hindu Undivided Family (HUF)’. Click Continue
  4. Provide PAN of the HUF*’, ‘Name of HUF*’, and ‘Date of Incorporation*
  5. Click ‘Continue’
  6. Fill in the following details:
    • Password Details
    • PAN Details of Karta
    • Contact Details of Karta
    • Address of HUF
    • Click ‘Submit’
  7. After registration,
    For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at the time of registration.
    For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.
  8. Enter the correct OTP to complete the registration process

3) Other than Individual and HUF

The user must have the following mandatory details:

  1. Valid PAN Card
  2. Valid Mobile Number
  3. Valid Email Address, preferably belonging to Principal contact person

Registration Process

Perform the following steps to register as an ‘Other than Individual and HUF User’:

  1. Visit the ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
  2. Click ‘Register Yourself’ button located at right side of the Home Page.
  3. Select the ‘User Type’ as ‘Other than individual/HUF’ and select the ‘Sub-User type’ as per the PAN.
    • Company
    • Body of Individuals (BOI)
    • Local Authority
    • Firm
    • Trust
    • Association of Persons (AOP)
    • Artificial Juridical Person
    • Government
    • Click Continue
  4. Provide ‘PAN of the Organisation/Entity*’‘Organisation Name*’‘Date of Incorporation*’.
    In case of ‘Company’ user, select the ‘Type of company’
  5. Click ‘Continue’
  6. Fill in the following details:
    • Password Details
    • Personal Details of Principal Contact
    • Contact Details of Principal Contact
    • Address of Organisation/Entity
    • Click ‘Submit’
  7. After registration,
    For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at the time of registration.
    For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.
  8. Enter the correct OTP to complete the registration process
  9. https://www.incometaxindia.gov.in/Pages/tax-services/registration-e-filing.aspx

4 March 2020

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 4th March, 2020 PRESS RELEASE TDS Surveys by Income Tax Department unearths huge defaults in deduction and deposit In a major breakthrough, the TDS wing of the Income Tax Department has unearthed default of tax deducted at source (TDS) of Rs. 324 crore in the case of a major Telecom Operator in Delhi. The company did not make the required TDS of 10% u/s 194J of the Income-tax Act, 1961 on technical contracts worth Rs. 4000 crore. The amount is further liable to go up once the enquiry is completed. Several hospitals of the city were found openly flouting the norms of TDS and tax collected at source (TCS) and were paying less tax to the Income Tax Department. During the survey, at two premier hospitals, one with more than 2500 bed capacity and the other with 700 bed capacity, it was found that the former was not making any TDS on construction contracts as statutorily required u/s 194C/ 194J, while the latter was deducting tax at the rate of 10% only on salary paid to the doctors, instead of the present TDS rate of 30% applicable for salary payments. Enquiries during the survey revealed that the terms of appointment between the hospital and the doctors indicated an employer-employee relationship on which the hospital was required to deduct tax at 30% instead of 10% as was being made by the hospital. TDS defaults of Rs. 70 crore and Rs. 20 crore respectively were detected in the said hospitals. Further enquiry revealed that the hospitals were also not making the required TDS at 10% from the maintenance charges paid for the hitech sophisticated operation theatre and diagnostic equipments. Furthermore, it was seen that many hospitals were still not complying with the TCS norms which came into effect from June 1, 2016 under which, on any cash payment received in excess of Rs. 2 lakh, the hospital was required to collect TCS @1% and deposit it to the Government account. In another TDS survey conducted on a prominent Real Estate Group in Delhi in the first week of the March, 2020, after credible data analysis of previous years, analysis of TDS compliance patterns by the various group companies, their ITR filings and tax auditor reports and real time data generated by CPC-TDS, it was seen that the deductor having already deducted tax in earlier years, had not deposited the deducted taxes in government account. During the survey, verification and analysis indicated outstanding TDS liability and interest payable of Rs. 214 crore. Major TDS default related to the payment of interest on outstanding loans. The Real Estate Company had taken huge loans on which interest payments were credited from time to time, TDS was duly deducted during various financial years but was not deposited to Government account. Since it was a case of non-compliance, interest at the rate of 1.5% for every month or part of the month is to be paid from the date on which such tax is deducted to the date on which such tax is actually deposited to Government account. In another action by the TDS Wing of the Department, TDS default of approximately Rs. 3200 crore was detected in the case of a major oil company pursuant to survey u/s 133A of the Act. The defaults included short deduction of tax and non deduction of tax respectively. Short deduction of tax pertained to TDS u/s 194J for several years on payment of Fee for Technical Services for installation and maintenance of high tech oil refineries, payments for chemical process of regasification and transportation of LNG. Default of non deduction was detected on composite contracts involving service and purchase of products on which TDS @2% should have been deducted but which was not deducted resulting in the said default. The Income Tax Department has, in recent times, stepped up enforcement action against TDS default cases as this category of revenue contributes to over 45% of the total direct tax collection in the country. As per Rules, the TDS has to be paid to the credit of the central government within seven days from the end of the month in which the deduction is made.

https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/828/PressRelease_TDS_Surveys_by_ITD_4_3_20.pdf

Condonation shall be allowed if the application for condonation of delay in filing of Form 9A and Form 10 has been filed and return of income has been filed on or before March 31 of respective AYs 2016-17, 2017-18 and 2018-19. CBDT, with the view to prevent hardship to the assessee, has decided that where the application for condonation of delay in filing Form 9A and Form 10 has been filed, and the Return of Income has been filed on or before 31st March of the respective assessment years i.e. Assessment Years 2016-17, 2017-18 and 2018-19, the Commissioners of Income-tax (Exemptions) are authorised u/s 119(2)(b) of the Act, to admit such belated applications for condonation of delay in filing Return of Income and decide on merit. For all other application for condonation of delay not mentioned above, the power of condonation of delay u/s 119(2)(b) of the Act will continue with the respective authorities as per the extant Rules and Practice.

https://www.incometaxindia.gov.in/communications/circular/circular_no_6_2020.pdf