Things to know about pre-filling of ITRs and Changes in ITR Software

A. Taxpayers are requested to note the followings in connection with pre-filling of ITRs-

1.Pre-filling of ITR is only for the taxpayer’s convenience. Taxpayers should verify the pre-filled data carefully and add any other taxable income which is not pre-filled.

2.Last date for filing of TDS statement and issue of TDS certificate by Deductor is 30th June, 2019 and 10th July, 2019 respectively. In case the TDS data is not pre-filled, taxpayers are expected to fill these details themselves.

B. Consequent to changes made in Income Tax Return Preparation Software and Schema for AY 2019-20,Please note the below

1. Already saved draft data will not be available in case of Online ITR 1 & 4

2. In case of Offline utilities, XML has to be re-generated using the latest Income Tax Return Preparation Software.

Procedure to file e-TDS/TCS statement online through e-filing portal

Procedure for Online Filing of TDS/ TCS Returns at E Filing Portal: CBDT (DIT Systems) Notification No. 10/2019 Income Tax dated 4th June 2019

CBDT has notified the procedure for online filing of TDS/ TCS Returns at e filing portal, including guidelines on registration, manner of the preparation/ submission of TDS/ TCS returns using DSC/ EVC and processing thereof within 24 Hours from Uploading.

TDS deductors /TCS collectors will have the option of online filing of e-TDS/TCS returns through e-filing portal or submission at TIN Facilitation Centres. Procedure for filing e-TDS/TCS statement online through e-filing portal www.incometaxindiaefiling.gov.in is given by Notification No. 10/2019 Dated 04th June, 2019.

Procedure for online submission of statement of deduction of tax under sub-section (3) of section 200 and statement of collection of tax under proviso to sub-section (3) of section 206C of the Income-tax Act, 1961 read with rule 31A(5) and rule 31AA(5) of the Income-tax Rules, 1962 respectively

1. The provisions relating to the statement of deduction of tax under sub-section (3) of section 200 and the statement of collection of tax under proviso to sub-section (3) of section 206C of the Income-tax Act, 1961 (the Act) are prescribed under Rule 31A and Rule 31AA of the Income-tax Rules, 1962 (the Rules) respectively_ As per sub-rule (5) of rule 31A and sub-rule (5) of rule 31AA of the Rules, the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day to day administration in relation to furnishing and verification of the statements in the manner so specified.

2. In exercise of power conferred by sub-rule (5) of rule 31A and sub-rule (5) of rule 31AA of the Rules, the Principal Director General of Income-tax (Systems) hereby lays down the following procedures of registration in the e-filing portal, the manner of the preparation of the statements and submission of the statements as follows:

3. The deductors /collectors will have the option of online filing of e-TDS/TCS returns through e-filing portal or submission at TIN Facilitation Centres. Procedure for filing e-TDS/TCS statement online through e-filing portal is as under:

a. Registration: The deductor/collector should hold valid TAN and is required to be registered in the e-filing website (https://www.incometaxindiaefiling.gov.in/) as “Tax Deductor & Collector” to file the “e-TDS/e-TCS Return”. In case of an office of the government, the Treasury Officer can register as an external agency user.

b. Preparation: The Return Preparation Utility (RPU) to prepare the TDS/TCS Statement and File Validation Utility (FVU) to validate the Statements can be downloaded from the tin-nsdl website (https://wvvw.tin-nsdi.corni). The statement is required to be uploaded as a zip file and submitted using either Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). For DSC mode, the signature for the zip file can be generated using the DSC Management Utility available under Downloads in the e-Filing website.

c. Alternatively, deduetor/collector can e-Verify using EVC.

d. Submission: The deductor/collector is required to login to the e-filing website using TAN and go to TDS Upload TDS. The deductor/collector is required to upload the “Zip” file along with either the signature file (generated as explained in para (b) above) or EVC. In case of External agency user, TDS/TCS return can be filed for the deductors/collectors under their jurisdiction using Digital Signature Certificate.

4. EVC can be generated using one of the following modes:

i. Net Banking – Principal contact person’s net banking login (linked to the registered PAN) can be used to generate the EVC for the TAN of the

ii. Aadhaar OTP – The principal contact person’s PAN can be linked with AADHAAR to use this option.

iii. Bank Account Number – The principal contact person can use his pre validated bank account details to avail this option.

iv. Demat Account Number – The principal contact person can use his pre validated demat account details to avail this option.

This pre generated EVC can be used to e-Verify the TDS return.

5. Once uploaded, the status of the statement shall be shown as “Uploaded”. The uploaded file shall be processed and validated. Upon validation, the status shall be shown as either “Accepted” or “Rejected which will reflect within 24 hours from the time of upload. The status of uploaded file is visible at TDS View Filed TDS. In case the submitted file is “Rejected”, the rejection reason shall be displayed.

Income Tax Dept can share info of loan defaulters with Public Sector Bank

Central Board of Direct Tax is of the view that sharing of information with Public Sector Banks (PSBs) in respect of assets held by defaulters of loans, so as to enable recovery of loans from such defaulters, is in public interest and hence, can be furnished.

Sharing of information with Public Sector Banks in case of loan defaulters -reg.

Many a time, Public Sector Banks (PSBs) request the Income-tax Department (ITD) to furnish information in respect of immovable assets of a loan defaulter to enable them to effect recovery from the loan defaulter.

2. In this regard, attention is drawn to Schedule AL to the relevant Form of Income Tax Return in case of an Individual or HUF having total income in excess of Rs 50 lakhs, wherein particulars of Assets and corresponding Liabilities, held at the end of the year, is required to be furnished. The information contained therein may be provided to the PSBs so as to aid recovery of loan from the defaulter.

3. The information may be furnished under section 138(1) (b) of the Income Tax Act 1961 (Act) which states that where a person makes an application to the Pr. CCIT/CCIT/Pr. CIT/CIT in the prescribed form, seeking any information relating to any assessee received or obtained by any income-tax authority in the performance of his functions under the Act, the Pr. CCIT/CCIT/Pr. CIT/CIT may, if he is satisfied that it is in the public interest to do so, furnish or cause to be furnished the information asked for.

4. Since the information on assets, as contained in the Income Tax Return in specified cases, is received by the Income Tax Authority in performance of his statutory functions, the information contained therein qualifies for being furnished in terms of Section 138(1) (b) of the Income Tax Act. In this context, Board is of the view that sharing of information with PSBs in respect of assets held by defaulters of loans, so as to enable recovery of loans from such defaulters, is in public interest and hence, can be furnished. Besides statement of Assets, if requested, information such as details of bank account, sundry debtors of the loan defaulter which may aid recovery of loan by the PSB from the loan defaulter, can also be provided.

5. It is further clarified that such information may be provided in respect of the borrower/mortgager/guarantor of the loan only. At the time of supply of such information a confidentiality clause may be included specifying that such information be used only for the purpose of recovery of loan and will not be shared with any other person/agency. An undertaking to this effect shall be obtained from the Bank (to be signed by an officer not below the rank of the Manager of the Branch concerned) before furnishing the information.

6. In order to ensure that the tax dues of the Department against the defaulter (if any) are safeguarded, an undertaking may be obtained from the PSB to obtain a No Objection Certificate (NOC) from the jurisdictional Pr. CIT/CIT of the loan defaulter before appropriation of the surplus amount recovered from sale of immovable/movable asset of the defaulter, information in respect of which is shared.

7. The above guideline may be brought to the notice of all offices posted in your region.

8. This issues with the approval of Chairman, CBDT

E-filing of Income Tax and details of Centralized Processing Centre (CPC 2.0 Project)

E-filing of Income Tax

There is a marked increase in the number of income tax filed through e-filing. The number of e-Returns submitted for Assessment Year 2018-19 is 6,49,39,586 as against 5,47,30,304 e-Returns filed for the Assessment Year 2017-18, thereby marking a remarkable increase of 18.65% over previous Assessment Year. A total of 7.19 crore Income Tax Returns (ITRs) have been processed in the Financial Year 2018-19. The total amount of refund released in Financial Year 2018-19 is Rs. 1,61,457.6 Crore.

The Government has accorded high priority to issue refunds for all taxpayers including small taxpayers. Less than 0.5% of ITRs are selected for scrutiny, the majority of ITRs are processed expeditiously and refunds are issued. With greater adoption of information technology in processing of ITRs and emphasis on less intrusive verification, the time taken to process ITRs is constantly reducing. Refunds amounting to Rs. 64,700 crores have already been issued in this Financial Year till 18.06. 2019.The Government has made it mandatory from March, 2019 to issue income-tax refunds through ECS only, therefore, expediting direct credit of refunds to bank accounts. Further, all field authorities have been instructed to issue refunds up to Rs 5,000 without any adjustment against outstanding demand, if any.

The Government has initiated several measures to educate the tax payers to e-file their ITRs. Outreach measures, including training in e-filing, conducting workshops and awareness programs, are being undertaken by the Income Tax Department. Aayakar Seva Kendras (ASKs) have been established in all regional offices to address tax payers’ concerns and guide them in e-filing their ITRs. The official website of the Income Tax Department offers step by step guidance on how to e-file the ITRs. The Government is also utilizing print media, audio and visual media as well as social media to educate people to file their ITRs through e-filing. Regular advertisements are placed in Newspapers and News Portals in internet each year during peak e-filing periods to educate and encourage taxpayers to submit their ITRs online. A total of 26.9 crore SMS and e-mails were sent to taxpayers in Financial Year 2018-19 reminding them for timely submission of ITRs and other important requirements.

Recently, in January, 2019, the Government has approved Integrated E-filing & Centralized Processing Centre (CPC) 2.0 Project of the Income Tax Department. The details of the CPC 2.0 Project are:

(i) CPC 2.0 Project envisages pre-filling of ITRs by the Income-tax Department and its acceptance by the taxpayer so as to improve accuracy of information contained in the Return and drastically reduce the existing turnaround time taken in processing of Returns and issuance of refunds.

(ii) CPC 2.0 Project will process ITRs in a consistent, uniform, rule driven, identity blind manner. This would ensure fairness in tax treatment to all taxpayers irrespective of their status.

(iii) The CPC 2.0 Project would significantly improve transparency and accountability of Income-tax Department as processing of returns and issuance of refunds would take place without any interface with the Department.

(iv) CPC 2.0 Project would adhere to international best practices and standards. It would keep the taxpayer informed by providing processing status update, speedy communication using mobile app, email, SMS and through website of the Income-tax Department.

(v) CPC 2.0 Project envisages setting up of integrated contact centres for taxpayer’s assistance and undertaking outreach programs involving taxpayers and other stakeholders through digital media in an effective manner.

Thus, CPC 2.0 Project besides promoting the Government objective of promoting voluntary tax-compliance culture would also smoothen the process of e-filing and processing of ITRs and will also bring about a significant enhancement in services to the taxpayers.

This was stated by the Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman in a written reply to a question in Lok Sabha today.