Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or subclause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 (hereinafter referred to as trust or institution under the first regime) of the Income-tax Act, 1961 (hereinafter referred to as the Act) or any trust or institution registered under section 12AA or section 12AB of the Act (hereinafter referred to as trust or institution under the second regime) is exempt subject to fulfilment of certain conditions specified under various sections of the Act.
One of the conditions required to be fulfilled by the trust or institution in order to be eligible to claim exemption under the first regime, is laid down in clause (b) of the tenth proviso to clause (23C) of section 10 of the Act. This states that in case the total income of the trust or institution, as computed under the Act without giving effect to the provisions of exemption under the first regime, exceeds the maximum amount which is not chargeable to income-tax in any previous year, the trust or institution is required to get its accounts audited and furnish the audit report in the prescribed Form before the specified date.
A similar condition is in place for trust or institution under the second regime in subclause (ii) of clause (b) of sub-section (1 ) of section 12A of the Act.
Rule 16CC and 17B of the Income-tax Rules, 1962 (hereinafter referred to as the Rules) prescribe the form of audit report for trust or institution under the first and second regime respectively. They provide that the report of audit of the accounts of a trust or institution, shall be furnished in –
(a) Form No. l0B where,
(i) the total income of trust or institution, exceeds rupees five crores during the previous year; or
(ii) such trust or institution has received any foreign contribution during the previous year; or
(iii)such trust or institution has applied any part of its income outside India during the previous year;
(b) Form No. 10BB in other cases.
The new forms, Form No. l0B/ Form No. l0BB, were notified vide Notification No. 7 of 2023 dated 21st February, 2023. The above prescription was put in place w.e.f. 01.04.2023, vide the Income-tax (Third Amendment) Rules, 2023, and is therefore, effective for assessment year 2023-24 and subsequent assessment years. The due date for furnishing such audit reports for the A.Y. 2023-24 was 31st October, 2023.
It has come to the attention of the Board that in a number of cases trusts/ institutions have furnished audit report in Form No. l0B, where Form No. 10BB was required to be furnished for the A.Y. 2023-24. Similarly, in a number of cases trusts/ institutions have furnished audit report in Form No. 10BB, where Form No. l0B was required to be furnished for the A.Y. 2023-24. As noted above, non-furnishing of audit report in the prescribed form would result in denial of exemption in such cases as it is one of the conditions which is required to be satisfied for claim of exemption.
In view of the above, the Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act has allowed those trusts/ institutions which have furnished audit report on or before 31st October, 2023 in Form No. l0B where Form No. 10BB was applicable and vice-versa, to furnish the audit report under clause (b) of the tenth proviso to clause (23C) of section 10 and sub-clause (ii) of clause (b) of sub-section (1) of section l2A of the Income-tax Act, 1961, in the applicable Form No. l0B/ 10BB for the assessment year 2023-24, on or before 31st March, 2024. Please refer to CBDT Circular 2/2024 dated: 05th March 2024. Please furnish audit report in correct prescribed form for AY 2023-24 on or before 31st March 2024 to claim exemption.
In the weekly newsletter dated January 8, 2024, Chairman Sanjay Kumar Agrawal of the Central Board of Indirect Taxes and Customs (CBIC) shared noteworthy updates.
From the launch of CBIC’s WhatsApp channel to commendable achievements, the newsletter provides insights into the latest developments within the organization.
Here are the detailed Analysis:
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WhatsApp Channel Launch:
Chairman Agrawal introduced the recently launched CBIC India WhatsApp channel. With a presence on various social media platforms, including Twitter, Facebook, Instagram, YouTube, and Koo, CBIC aims to enhance taxpayer information and facilitation. The WhatsApp channel, a pioneering move by a government department, already boasts around 7,500 followers.
IRS Officers Passing Out Ceremony:
The newsletter highlights the Passing Out Ceremony of the 73rd Batch of IRS (C&IT) Officers. Chairman Agrawal emphasizes the significance of knowledge, citing the academy’s motto. The trained officers, ready to serve, demonstrate espirit de corps and are prepared to administer customs and indirect taxes.
Medals and Recognitions:
Exceptional officers are recognized during the ceremony, with medals awarded for outstanding performance during their probationary period. Notable achievements include the FM and Chairman Gold Medal, Kaushalya Narayanan Memorial Gold Medal, Director General Gold Medal, and N. K. Upadhyay Memorial Gold Medal.
Vigilance Achievements:
CBIC achieved a record number of disposals of vigilance cases in 2023, with 524 disciplinary proceedings disposed of. The Chairman commends the collective effort and expresses confidence in sustaining this momentum for the upcoming year, aiming for new heights in vigilance administration.
5. Relief Measures for Rain-Affected Areas:
Due to heavy rains in Tamil Nadu, CBIC approved the extension of due dates for filing GSTR-3B and Annual Return. This decision aims to provide relief to taxpayers in rain-affected areas.
Customs Success Story:
The newsletter highlights a successful case booked by Trichy Customs (Preventive) Commissionerate, showcasing the vigilance and teamwork of officers. A specific intelligence-led operation led to the recovery of 7.70 kgs of gold worth Rs. 4.85 Crore.
Conclusion: Chairman Sanjay Kumar Agrawal’s weekly newsletter encapsulates the dynamism of CBIC, showcasing achievements, recognitions, and significant initiatives.
From technological advancements like the WhatsApp channel launch to the vigilance administration accomplishments, the newsletter underscores CBIC’s commitment to efficiency, transparency, and serving the public interest.
Stay tuned for more updates and insights in the weeks to come, as CBIC continues its journey towards excellence in customs and indirect taxes administration.
Department of Revenue Central Board of IndirectTaxes & Customs
Sanjay Kumar Agrawal, Chairman
DO No. 02/News Letter/CH(IC)/2024 Dated: 08th January, 2024
Dear Colleague, I am pleased to inform that the Central Board of Indirect Taxes and Customs (CBIC) has recently launched its WhatsApp channel – ‘CBIC India’. This initiative would greatly support our continued endeavour for taxpayers’ information and facilitation. The CBIC is already actively engaging with various stakeholders through its own website and social media accounts on popular platforms such as X (previously known as ‘Twitter), Facebook, Instagram, YouTube, and Koo. Since WhatsApp is one of the most popular social media platforms in India, the presence of CBIC on WhatsApp channel will help in dissemination of information to a much larger audience. It is also worth noting that CBIC is one of the first Government Departments to establish its presence on WhatsApp Channels! As on date, there are about 7,500 followers of the CBIC Channel. I urge all of you to follow the channel for GST, Customs and Indirect tax related information. Last week, the Passing Out Ceremony of the 73rd Batch of IRS (C&IT) Officers took place in NACIN Palasamudram Campus. The parade, comprising of 26 Officer Trainees including 9 lady officers, showcased the culmination of rigorous training, marking the officers’ readiness to take on their roles in public service. These young officers, confidently displaying the spirit of espirit de corps in their kadam taal, will be at the forefront of administering the Customs and Indirect taxes in the country.
At this juncture, I would remind the officers of the motto of the academy. Knowledge is the Supreme Power as this phrase holds significant importance for the newly trained officers. In the complex and dynamic field of customs and indirect taxes, staying abreast of changing regulations, trade practices, and global economic trends is crucial. A well-informed officer is better equipped to make sound decisions and contribute positively to the overall efficiency and integrity of the Department and uphold the principles of fairness and justice in their responsibilities.
During the event, medals were also bestowed upon the officers who demonstrated exceptional performance during their probationary period. My heartfelt congratulations to Shri Kankanala Anil Kumar for earning the FM and Chairman Gold Medal, Ms. Tanvi Soni for the Kaushalya Narayanan Memorial Gold Medal, Ms. Pooja Ashok Kadam for the Director General Gold Medal, and Ms. Selvavinodhini V for the N. K. Upadhyay Memorial Gold Medal. It gives me immense pleasure to share that in 2023, CBIC was able to achieve highest number of disposals of vigilance cases. In 2023, we collectively disposed 524 disciplinary proceedings, improving on our previous all-time disposal record of 401 Final orders which were issued in 2022, by a healthy margin of 30%. In the month of December 2023 alone, CBIC collectively issued 87 Final orders – a record disposal. I convey my sincere appreciation for Pr DGoV, her team and the Disciplinary authorities in the field for this outstanding accomplishment. With these numbers, I am confident that this momentum and vigour displayed by you will continue this year as well so that CBIC achieves new heights in the field of vigilance administration. Due to heavy rains over several districts of Tamil Nadu last month, normal functioning of the rain affected areas was severely disrupted. Recognizing the need to provide relief to the taxpayers in these areas, the GST Implementation Committee (GIC) approved the extension of due dates for filing GSTR-3B for the month of November 2023 as well as Annual Return for Financial Year 2022-23. Accordingly, the Notification No. 01/2024-Central Tax and 02/2024-Central Tax were issued by the CBIC last week. I hope this measure will provide the much needed relief to the taxpayers in these districts.
I would like to highlight an interesting case booked by the officers of Trichy Customs (Preventive) Commissionerate. On Specific intelligence, the officers of Central Intelligence Unit, Trichy along with officers of Customs Preventive Unit, Rameswaram intercepted two persons moving in bike near Thangachimadam Dargah Bus stop, Rameswaram. On seeing the officers, the bikers fled the scene leaving the bike at the spot. On thorough search and examination of the bike, gold weighing 7.70 Kgs valued at Rs. 4.85 Crore was recovered from the abandoned bike. Kudos to the team effort and vigilance displayed by the officers!
CBDT has released the new ITR forms – ITR-1 and ITR-4 – for FY 2023-24 early this year. These forms are applicable for filing income tax return before July 31, 2024, unless extended.
New ITR forms AY 2024-25: Taxpayers will now be required to provide information regarding cash receipts and all their bank accounts within the country according to the latest Income Tax Return (ITR) Forms for the Assessment Year 2024-25, as notified by the Central Board of Direct Taxes.
CBDT has released the new ITR forms – ITR-1 and ITR-4 for FY 2023-24 early this year.
These forms are applicable for filing income tax return for AY 2024-24 with the last date of July 31, 2024, unless extended.
One noteworthy feature of the new ITR forms is that The Finance Act, 2023 has modified Section 115 BAC, establishing it as primary tax regime for individuals, HUFs, AOPs, BOIs, and AJPs. Under this amendment, if an assessee prefers not to adhere to the new tax regime, they must expressly opt out and select the Old Regime for their taxation.
The ITR 1, also known as Sahaj, can be filed by individuals with an income up to Rs.50 lakhs. This includes income from salary, one house property, other sources such as interest, dividends, etc and agricultural income up to Rs.5,000.
Taxpayers will need to provide details of all their bank accounts operational in the previous year along with the type of account.
The updated income tax return forms also include a special section for deductions for Agniveers, the youth serving in the armed forces under the Agnipath scheme, as per Section 80CCH.
Individuals, Hindu undivided families (HUFs), and firms, excluding limited liability partnerships (LLPs), with a total income up to Rs.50 lakhs and income from business and profession, can file ITR 4, also known as Sugam.
In the previous year, the forms were notified in February. Previously, there was a separate column for cryptocurrency. However, in the new ITR, a new disclosure has been added to specify “receipts in cash’ in the New ITR 4 Form.
Here are some cases in which the assessee cannot file ITR 1 –
Any individual having an income of more than INR 50 lakhs.
An individual holding a directorial position in a company or having unlisted equity shares during the financial year.
Non-residents and Resident but not ordinarily resident (RNOR).
Individuals with income from more than one house property
Income from lottery, horse races, and legal gambling.
Short-term and long-term capital gains
Agricultural income is more than 5000.
Income from business and profession
Any resident having assets outside India
Individuals claiming Foreign Tax Credit under sections 90, 90A and 91.
Deferred Income Tax on ESOP.
Here are some cases in which the assessee cannot file ITR 4 –
If the turnover of the business exceeds Rs. 2 crores (3 crores for FY- 2023-24), the taxpayer will have to file ITR-3
If your total income is more than INR 50 lakhs
Have income from more than one house property and own a foreign asset
The income tax department has introduced a new functionality on its website- ‘Discard ITR’.
This new feature will allow taxpayers to discard their previously filed but unverified Income Tax Returns (ITR).
Starting from Assessment Year 2023-24, this new ‘Discard ITR’ functionality, provides users with the ability to discard original, belated, or revised ITR, expanding the scope for revision beyond just errors or omissions.
– Opting to discard the ITR is equivalent to non-filing of the return.
– Following the discard, a new ITR can be submitted.
However, if the fresh ITR is filed after the due date, it will incur late fees and other associated consequences.
– Once the discard option is exercised, it cannot be reversed.
Hence, use this option cautiously.
– The discard feature is available until the ITR filing deadline, i.e., until December 31 following the end of the financial year.
Hence, timely action is advised.
The tax department has released FAQs to address common queries on Discard ITR Option. Here is all you need to know about the new functionality on the income tax website that allows taxpayers to discard their unverified Income Tax Returns (ITR).
1)Taxpayers can avail of the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it.
2)However, if the “ITR filed u/s 139(1)” is discarded and the subsequent return is filed after the due date u/s 139(1), it would attract implications of belated return like 234F, etc.,
3) To access the ‘Discard’ option, users can follow the specified pathway on the income tax website. On the income tax portal, users can find the Discard option www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard”
4) Users can avail of this option only if the ITR status is “unverified” / “Pending for verification”.
5) Users can utilize the discard option repeatedly as long as the ITR status remains unverified or pending verification.
6) The feature is available for AY24 onwards. Once an ITR is discarded.
7) This option will be available only till the time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now).
8) Once an ITR is discarded, it cannot be reinstated, making the action irreversible and essentially disclaiming the filing of the ITR.
Meanwhile, a record number of over 7.85 crore Income Tax Returns were filed till October 31 this year, said the Central Board of Direct Taxes (CBDT). According to the official release, October 31 was the due date for filing ITRs (other than ITR-7) for taxpayers not having any international or specified domestic transactions.
With 2.75 crore refunds already processed, the I-T department has asked taxpayers to respond to outstanding tax demands promptly.
The Income Tax Department has urged taxpayers to address any outstanding tax demands for previous years in order to facilitate faster clearance of refunds for the 2022-23 fiscal year. This is a taxpayer-friendly measure, as it gives taxpayers an opportunity to clarify the status of any outstanding demands and ensure that they receive their refunds as quickly as possible.
The Income Tax Department on September 23, 2023, called upon taxpayers to promptly respond to intimation of outstanding tax demands, adding that it will help in faster processing of income tax returns (ITR) and quicker issuance of refunds.
For the Assessment Year 2023-24, a total of 7.09 crore returns have been filed. Of these, 6.96 crore ITRs have been verified, 6.46 crore returns have been processed, and 2.75 crore refund returns have already been issued as per the latest data from the I-T department.
The Income Tax Department is making every effort to complete the processing of ITRs and issuance of refunds expeditiously, it said in a social media post on X. However, a significant hurdle in achieving this goal is that there are previous outstanding tax demands.
What are pending tax demands?
After you file your returns, the Income Tax Department inspects the tax declarations and if there are any mismatches with your actual tax liability, it issues an “outstanding tax demand” notice.
Section 245(1) of the Income-tax Act, 1961, necessitates offering taxpayers an opportunity to provide their input before adjusting the refund against any existing demand. Taxpayers are required to agree, disagree, or clarify the status of the demand.
Taxpayers who have outstanding demands from previous years will receive notifications from the department. So it has requested the taxpayers to respond to such intimations to enable “cleaning up/reconciliation” of pending demands and facilitate timely issue of refunds. It will not only aid in resolving pending demands but also expedite the timely issuance of refunds.
How to Respond to Outstanding Tax Demands?
In its official website, the Income Tax Department shows how one can respond to outstanding demands. Here are the steps to follow:
To begin the process, taxpayers should visit the official Income Tax Department’s e-filing portal at https://www.incometax.gov.in/iec/foportal/.
Under the ‘e-File’ menu, taxpayers should locate and click on the ‘Response to Outstanding Demand’ option.
In the subsequent screen, taxpayers will find a list of response options. They can select from the following choices:
a) Demand is correct
b) Demand is partially correct
c) Disagree with demand
d) Demand is not correct but agree for adjustment
Submit Your Response: Depending on the chosen response, taxpayers should follow the instructions provided on the portal. If the taxpayer selects ‘Demand is correct,’ they should click on the ‘Submit’ button to confirm their choice and complete the response submission process.
However, if the ‘Demand is correct’ option is confirmed, taxpayers will not have the option to disagree with the demand later and any refund owed will be adjusted against the outstanding demand. Taxpayers also have the option to pay the demand directly by clicking the link under the ‘Pay Tax’ option.
The government extended the date for filing income tax returns for companies by one month to November 30.
Income Tax Department has extended the deadline for ITR filing for certain categories of taxpayers. This has brought great relief to the taxpayers/institutions falling in these categories and they have also been saved from paying heavy penalties due to delay.
According to the Income Tax Department, till September 5, about 6.98 crore individual taxpayers have filed ITR.
The Income Tax Department has extended the deadline for filing income tax returns for charitable trusts, religious institutions and professional bodies by one month to November 30. The Income Tax Department said in a statement that the due date for filing income tax return in Form ITR-7 for the assessment year 2023-24, which is 31 October 2023, has been extended to 30 November 2023.
Also, the due date for submission of audit report for 2022-23 by any fund, trust, institution or any university or educational institution or medical institution in Form 10B/10BB has been extended by one month to 31 October 2023. Earlier the last date for submission of audit report was 30 September.
ITR-7 is filed by institutions involved in charitable and religious activities, research institutes, professional bodies, political parties and electoral trusts also file tax returns through ITR-7.
The Finance Ministry said in a statement on Monday, the deadline for filing income tax return in Form ITR-7 for the assessment year 2023-24 has been extended from October 31, 2023 to November 30, 2023.
In the current financial year, till mid-September, net direct tax collection has increased by 23.51% to Rs 8.65 lakh crore. The Finance Ministry said that there has been a huge increase in direct tax collection due to more advance tax payment by the companies. During this period, advance tax payment has increased by 21%.
According to the data, net tax collection has been 47.45% of the budget estimate of Rs 18.23 lakh crore for the current financial year. In the last financial year 2022-23, direct tax collection was Rs 16.61 lakh crore.
AIS shows both reported value and the value after considering taxpayer feedback under each section (i.e. TDS, SFT, Other information).
The Income Tax Department has announced the roll-out of a new statement namely Annual Information Statement (AIS) which would provide you with almost all details about your financial transactions during the year. So far, the Income Tax Department has been issuing Form 26AS to provide information related to taxable income and tax deducted at source (TDS), which will now be replaced with the Annual Information Statement (AIS). The new AIS statement will provide comprehensive information of the taxpayer and will be significantly useful while preparing the tax return. The information will be provided in AIS after removing duplicate information and taxpayers can download such information in PDF, JSON, CSV formats.
A taxpayer can submit online feedback if the information is erroneous or refers to another person/year, or is duplicate. The list of Top 50 Transactions to be reported in the New Annual Information Statement are mentioned below.
1.Salary
Employer submits detailed breakup of salary, perquisites, profits in lieu of salary etc paid to the employee in Annexure II of the TDS statement (24Q) of the last quarter. This information is also provided by the employer to the employee (taxpayer) in Part B (Annexure) of Form 16. AIS displays all the financial transactions such as, salary income, dividend income, interest income from saving/fixed deposits, sale and purchase of securities, etc. With the help of all such financial information, it would be easy for a taxpayer to report the correct information in the income tax return
Rent Received
Tenants responsible for paying rent are liable to deduct tax at source on payment of rent. Deductor reports details of amount paid/credited, date of payment, details of Tax deduction made etc. in Form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Tenant (Individual/HUF) paying a rent of more than 50,000 is liable to deduct tax while making payment to the landlord. Tenant reports details of rent paid amount paid/credited, property details, date of payment and tax deduction details etc. pertaining to rent paid in Form26QC.
Dividends
Dividend paid/declared by all companies (reporting entity) is reported under Statement of Financial Transactions (SFT). Company paying/distributing dividend is liable to deduct TDS from the amount paid subject to the threshold applicable in the act and report through form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest from savings bank
Interest paid/credited/accrued on saving account is reported under Statement of Financial Transactions (SFT).
Interest from deposit
Bank/deductor at the time paying/crediting interest on deposits is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest from others
Interest paid/credited/accrued on others (other than savings account, term deposit, recurring deposit) is reported under Statement of Financial Transactions (SFT). Bank/deductor at the time paying/crediting other interest (interest on securities) is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A
Interest from income tax refund
Interest received on Income Tax Refund in the financial year is liable to be taxed as Income from other sources.
Rent on plant & machinery
Tenant paying rent is liable to deduct tax at applicable rate as per the Act from rent paid. Details of rent on Plant & Machinery is reported by the deductor in TDS form 26Q. Tenant furnishes the details of rent paid on quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Winnings from lottery or crossword puzzle
Payer is liable to deduct tax at applicable rate as per act from winnings from lottery or crossword puzzle etc. Information about winnings is reported by payer in TDS form 26Q. Information is reported on quarterly basis. Income is taxable at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Winnings from horse race
Payer is liable to deduct tax at applicable rate as per act from winnings from Horse race. Information about winnings is reported by payer in TDS form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Receipt of accumulated balance of PF from employer u/s 111
Employer/recognised provided fund reports information about accumulated balance due to an employee in form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest from infrastructure debt fund
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest from specified company by a non-resident u/s 115A(1)(a)(iiaa)
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest on bonds and government securities
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income in respect of units of non-resident u/s 115A(1)(a)(iiab)
Information about income in respect of units of Non Resident is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b)
Information about income and long-term capital gain from units payable to an off shore fund is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income and long-term capital gain from foreign currency bonds or shares of Indian companies u/s 115AC
Information about income and long-term capital gain from foreign currency bonds or shares of Indian companies is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income of foreign institutional investors from securities u/s 115AD(1)(i)
Information about income of foreign institutional investors from securities is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Insurance commission
Information about insurance commission received is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Receipts from life insurance policy
Receipts from life insurance policy are exempt under section 10(10D) subject to conditions specified therein. If such conditions are not met, the receipts become taxable and tax is also deducted u/s 194DA. The information is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Withdrawal of deposits under national savings scheme
Withdrawals from NSS are taxable. Tax is also deducted on such withdrawals and reported in Form 26Q by the payer on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Receipt of commission etc. on sale of lottery tickets
Commission on lottery business is subject to tax deduction under section 194G. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
Income from investment in securitization trust
Income from investment made in securitization trust is subject to tax deduction. The payer reports such information in Form 27Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Income on account of repurchase of units by MF/UTI
Receipt of income on account of repurchase of units by MF/UTI is subject to tax deduction under section 194F. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Interest or dividend or other sums payable to government
Income from interest or dividend or other sums payable is not subject to tax deduction. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
Payment to non-resident sportsmen or sports association u/s 115BBA
Information pertaining to amount paid to non-resident sportsmen or sports association is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Sale of land or building
Sales consideration of immovable property transferred is reported under Statement of Financial Transactions (SFT). The information will be shown in AIS of all sellers to enable submission of feedback. Sale of immovable property is also reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person. Information related to receipts under specified agreement is reported by person making payment for specified agreement entered into. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Receipts from transfer of immovable property
Information related to receipts from transfer of immovable property is reported by buyer of property in Form 26QB. This information is provided by the deductor to the deductee (taxpayer) in Form 16B.
Sale of vehicle
Sale of motor vehicle is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Sale of securities and units of mutual fund
In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return.
Off market debit transactions
In the SFT reporting of depository transactions, the depository reports details of off market debit transactions. The value of transaction is computed on the basis of end of day price of the security. In case, the consideration is available, the same is also shown.
Off market credit transactions
In the SFT reporting of depository transactions, the depository reports details of off market credit transactions. The value of transaction is computed on the basis of end of day price
Business receipts
Information pertaining to amount paid to contractor is reported by contractee in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information pertaining to amount paid to the service provider is reported by recipient of services in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
Business expenses
Information pertaining to purchase of alcoholic liquor is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.
Rent payments
Information is reported by person making payment in form 26QC. This information is provided by the deductor to the taxpayer in Form 16C
Miscellaneous payments
Information is reported by person making payment in form 26QD. This information is provided by the deductor to the taxpayer in Form 16D. Purchase of bank drafts or pay orders may be reported in Form 61 if PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person
Cash deposits
Information pertaining to cash deposits in an account other than current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to cash deposits in current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback.
Cash withdrawals
Information pertaining to Cash withdrawals from current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Sometimes, cash withdrawals from accounts other than current account are reported by the Reporting Entity in SFT-004. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to Cash withdrawals is reported by reporting entity through TDS statement 26Q. This information is provided by the deductor to the taxpayer in Form 16A.
Cash payments
Information pertaining to Cash payments for goods and services is reported by reporting entity in form 61A. Information pertaining to Purchase of bank drafts or pay orders or banker’s cheque in cash is reported by reporting entity in form 61A. Information pertaining to Purchase of prepaid instruments in cash is reported by reporting entity in form 61A.
Outward foreign remittance/purchase of foreign currency
Information of outward foreign remittance is reported by authorised dealer in form 15CC. Information about Remittance under LRS for educational loan taken from financial institutions mentioned in section 80E (Third proviso to Section 206C(1G)) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.Information about Remittance under LRS for purpose other than for purchase of overseas tour package or for educational loan taken from financial institution (Section 206C(1G(a))) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.
Receipt of foreign remittance
Information relating to payment of royalty or fees for technical services etc., paid to non- residents is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information is reported by authorised dealer in form 15CC for foreign remittances made by remitter PAN. Information of receipt of foreign remittance by a remittee is reported by authorised dealer in form 15CC.
Foreign travel
Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment in connection with travel to any foreign country may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Purchase of immovable property
Information relating to immovable property is reported by the Property Registrar through SFT. The information will be shown in AIS of all buyers to enable submission of feedback. Buyer at the time of making payment towards purchase of property is liable to deduct tax from the amount paid to the seller subject to the threshold applicable. This information is reported in form 26QB. Seller of property reports the details of property buyer in schedule CG of ITR. Payment for purchase of immovable property may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Purchase of vehicle
Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment for purchase of motor vehicle may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Purchase of time deposits
Information relating to Purchase of Time deposits is reported by reporting entity (such as the bank) in the Statement of Financial Transaction (SFT). Information pertaining to investment in Time deposit is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Purchase of securities and units of mutual funds
Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Purchase of shares (including share application money). Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Information is reported by reporting entity (such as mutual fund companies) in the Statement of Financial Transaction (SFT).
Credit/Debit card
Information pertaining to application for issuance of credit/debit card is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
Balance in account
Details of bank account other than saving and time deposits opened during the year , as reported in Form 61. Bank account with balance exceeding 50,000 at the closing of Financial year, as reported in Form 61.
Income distributed by business trust
Information relating to income from units of a business trust is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate.
Income distributed by investment fund
This information is reported by the deductor in Form 26Q on a quarterly basis
The Income Tax Department tracks more comprehensive information about assessees & this facilitates financial transactions from many income sources and expenditures to be captured, in more detail. This needs to be reconciled while filing ITR and proper records to be maintained by all for above list of items, as these are scrutinized by tax department.
Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or subclause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 (hereinafter referred to as trust or institution under the first regime) of the Income-tax Act, 1961 (hereinafter referred to as the Act) or any trust or institution registered under section 12AA or section 12AB of the Act (hereinafter referred to as trust or institution under the second regime) is exempt subject to fulfilment of certain conditions specified under various sections of the Act.
