Form 26AS till now has always been an annual consolidated credit statement issued by the income tax to help taxpayers cross-verify income earned, tax deducted at source (TDS) and tax deposited during a given financial year.

In its new avatar, the new “bigger and bolder Form 26AS” would be more of an ‘Annual Information Statement’ which will have comprehensive information on taxes paid, details of pending and completed income tax proceedings, status of income tax demand and refund along with details of specified financial transactions like purchase of shares or property.

Key takeaways of the new Form 26AS released by the CBDT vide Notification dated May 28, 2020 by way of amendment to Section 285BB w.e.f. 01.06.2020:

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LONG POST ALERT

Safe Harbour – What is means

Safe harbour refers to a legal provision to reduce or eliminate liability in certain situations as long as certain conditions are met. In other words, it refers to the circumstances under which the Income Tax authorities shall accept the transfer price declared by the assessee and the same shall be without any question or scrutiny.

Businesses flourish only if there is certainty and safe-harbour provisions offer that certainty to them. It is a provision of the Income Tax Act that specifies that from the perspective of Transfer Pricing (TP) provisions, if the assessee fulfils certain defined circumstances, the Income Tax authorities shall accept the TP declared by the taxpayer.

Safe Harbour Rules (SHR), introduced by the Central Board of Direct Taxes (CBDT) in the year 2009, provides for circumstances in which a certain category of taxpayers can follow a simple set of rules under which transfer prices are automatically accepted by the revenue authorities.

Such safe harbour rules benefit assessees by allowing them to adopt a transfer pricing mark-up in the range prescribed, which would be acceptable to the Income Tax department with benefits of compliance relief, administrative simplicity and certainty and hence would avoid protracted litigation.

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Are you a salaried individual earning below INR 50 lakhs per annum filing the simple ITR-1? Still get ready to answer the new questions that the tax authorities would seek from you for this year onwards.

The income tax department yesterday opened the window for e-filing of income tax returns (ITR) for financial year 2019-20 (Assessment Year 2020-21) for those using ITR-1 form, the deadline for filing having already been extended to November 30th 2020.

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