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March 2012

ITGOA ZINDABAD

JCA ZINDABAD

COC ZINDABAD

INCOME TAX GAZETTED OFFICERS ASSOCIATION


Karnataka & Goa Unit, C.R. Building Annexe, Queens Road, Bangalore - 560 001. e-mail: itgoaktkgoa@gmail.com
SHASHIDHAR S SHET President 9448660614

K.A.JAMADAR Vice-President 9241342225

K A CHANDRAKUMAR Vice-President

SAINATHAN MUDALIAR Vice-President

K.R.NARAYANA General Secretary 8762300942

GREAT VICTORY Time Barring date restored to 31st March


Right from day one, the association fought for restoring TB date to 31st 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 section 153, to restore TB date to 31st 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 and recognition.
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. That shall 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.

Com. K.A.Chandrakumar Vice-President

Com. Sainathan Mudaliar Vice-President

Com. Vijayakumar Budihal Zonal Secretary, Panaji

Further strength at Zonal and Regional levels


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 General Secretary 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.

Com Ramesh A Joshi Zonal Secretary, Hubli

Com Muralidhar Nayak Regional Secretary, Mangalore

Com Marenna Regional Secretary, Gulbarga

Com S.K.Virginkar Regional Secretary, Panaji

Com Bhaskar Regional Secretary , Davanagere

Com Navalgund Regional Secretary , Belgaum

Com G.Suresh Regional Secretary, Mysore

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

Felicitation to Ex-All India President


B = Bold S = Sportsman, Singer, Strategist H = Handsome A = Association man N = Never dull T = Tidy H = Hard Working I = Intelligent K = Kreative U = Understanding M = Musician A = Artist R = oRator

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. In the EC meeting held on 9th 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.

Com B. Shanthikumar, Ex-All India President who has made remarkable contribution to the welfare of members for decades was felicitated by Sri K. Sathyanarayana CCIT, Bangalore on our behalf on 15th Feb. 2012 at Bangalore.

Successful Walk out


The national call of half day walk out on 28th February was successfully observed in our charge by active participation of 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.

New ACsIT
The DPC for 204 posts of ACsIT was conducted by UPSC on 5th & 6th March. The minutes of DPC have since reached the CBDT. Assurance has been given to our leaders, in the meeting on 13th 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 Mohammed 5. 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.

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

Highlights of Finance Bill 2012


The Finance Bill 2012 has proposed several amendments strengthening enforcement machinery against tax evasion. The decision of the Hon'ble Supreme Court in Vodafone case and favorable decision of Hon'ble Karnataka High Court in Samsung case have prompted certain clarifications. Many amendments will take effect retrospectively requiring us to take actions based on the changed Law . Some of its highlights are reported for the benefit our members. 1. 2(14) Capital asset - Explanation inserted for removal of doubts and clarify that property includes any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever. 2. 2(47)-Transfer- Explanation 2 inserted to clarify that transfer includes disposing of or parting with an asset or any interest therein creating any interest in any asset in any manner whatsoever, directly or indirectly, absolutely or conditionally, voluntarily or involuntarily, by way of an agreement (whether entered into in India or outside India) Section 9 is also amended to clear any doubts about taxation of such transactions. 3. 9(1)(vi)-Royalty- Computer software and process of transmission by satellite (including up-linking, amplification, conversion for down-linking of any signal), cable, optic fiber etc are now clearly brought under the tax net. 4. 10(10D)-For policies issued after 1-4-2012, if premium payable exceeds 10% of actual capital sum assured, the maturity amount from such policy would be taxable. 5. 13(8)-says that exemptions u/s 11 & 12 shall not apply to the income of a trust from the activity of trade, business etc for advancement of any other object of general public utility. 6. 40 (a)(ia)- Though assessee has not deducted tax , if he is not deemed to be an assessee in default under 201(1) as the payee , who is a resident, has filed return of income and paid the tax, disallowance u/s 40(a)(ia) can be made. 7. 44AB-Monetary limit raised to 1 crore for business and 25 lakhs for profession-Instead of common date for submitting audit report, i.e. 30th September, time given till due date for filing the return. 8. The section now made applicable cases with turnover up to 1 crore However, with retrospective effect from AY 2011-12 the section is made not applicable for Professions, Commission or Brokerage income and any Agency business . 9. 50D-In cases where sale consideration is not ascertainable or cannot be determined the FMV , shall be deemed to be the full value of the consideration. 10. 54B-The exemption of CG in respect of transfer of agricultural land, which was till now applicable to individual is extended to HUF also. 11. In present section reference to VO can be made only if the value determined by the registered valuer is less than FMV. 12. 55A-From 1-7-2012, the section amended to enable referencing of cases to determining cost of acquisition also to VO 13. 56-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. 56(2)-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.

15. 68- 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. 80C- Insurance premium the deduction shall now be restricted to 10% of the Capital Sum assured. 17. 80G & GGA-No deduction for cash donations above Rs 10,000. 18. 80TTA-Deduction for SB interest earned up to Rs 10000 from Bank or Post office 19. 90- 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. 92-Transfer pricing regulations made applicable even for Specified domestic transactions u/s section 92BA. 21. 115BBA-Tax rate increased to 20%- Made applicable even for a NR entertainer( Three cheers to cheer girls) 22. 115 BBE- Additions u/s 68,69,69A to D shall be taxed at 30%No deductions from such additions. 23. 115JC-Alternate Minimum Tax now extended to all other Non Company entities having adjusted total income above 20 lakhs. 24. 139-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. 143-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. 147: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 201213 and all earlier AYs. 27. 149-If assessee is found to have any asset (including financial 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. 153-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. 193-Individual payee is presently exempted from TDS on debenture interest if, it doesn't exceed 2500/- and payment is by a/c payee cheque- This benefit is now extended to HUF-Monetary limit hiked to 5000/- .

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

30. 194E-TDS Rate hike to 20% from present 10%. 31. 194LA-TDS on compensation for acquisition of immovable property monetary limit hiked to 2 lakhs. 32. 194LAA-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. 195-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. 201(3)- 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. 206C-1% TCS imposed on coal or lignite or iron ore and bullion/jewellery for cash of 2 lakhs and above. 36. 207-Any person of age 60 years is exempted from payment of Advance Tax if he doesn't have income from business or profession 37. 209(1)(d) -Till now, the TDS/TCS could have been reduced from AT liability even if payment has not actually subjected to TDS/TCS. Section is now amended to permit such decrease only if TDS/TCS is actually made. 38. 234D-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. 234E-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. 253-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. 271AAB-penalty in search cases-provides for 10% where admitted 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. 271H-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. 292CC (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 AOP/BOI - Though warrant is combined one, the assessments can be made separately on each person mentioned in warrant. 44. WT-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. WT-Reassessment in respect of asset located outside India time limits for reopening and other procedures same as in IT Act 46. WT-Time barring dates extended to 31st March

We miss him from April


Com. P. Suleman, ITO Ward-2, Bellary ( 94488 50431) Born on 10th 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, Davangere and 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 We mustn't allow what we can't do to interfere with what we can do. On the eve of his retirement, he has called upon everyone to help the needy with the message Helping is a warm feeling and it takes us near real GOD Happy Retirement wishes to him, on behalf of entire ITGOA, KTK & GOA.

With Best wishes for successful New Financial Year & special thanks to Com. Rathnakar ITO, Hospet

K.R.Narayana
General Secretary On behalf of Editorial Committee
To, Smt. / Sri

BOOK-POST

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