Income tax dept coming after demonetisation cases, sets June 30 deadline for field officers

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Updated: April 14, 2019 7:25:08 PM

The Central Board of Direct Taxes (CBDT) has set June 30 as the deadline to clear all demonetisation cases as well as for the issuance of notices to those who have failed to file the statement of financial transactions (SFT) of high-value transactions as per Section 285BA of Income-tax Act by May 15.

CBDT has also set the deadline for filing of references before NCLT with respect to ‘struck off’ companies by June 30.

The Central Board of Direct Taxes (CBDT) has set June 30 as the deadline to clear all demonetisation cases as well as for the issuance of notices to those who have failed to file the statement of financial transactions (SFT) of high-value transactions as per Section 285BA of Income-tax Act by May 15, the Indian Express reported.

Section 285BA requires recording and reporting of such transactions by specified persons including banks, mutual funds, institutions issuing bonds, and filing the Annual Information Report with details of these high-value transactions within the required time in the following year.

Outlining the April-June interim action plan, the CBDT has also set the deadline for filing of references before NCLT with respect to ‘struck off’ companies by June 30.

The board has already asked tax offices to check financial transactions of around 3 lakh companies, which were de-registered by the government for their suspicious financial credentials, for evading taxes and laundering money, particularly at the time of demonetisation and bring under their ambit the time period (over the last two years) when such firms were removed from the RoC records.

CBDT has already directed field officers to spot cases where there is a violation of cash payments of loans of Rs 5 lakh and above, as per Section 269SS of Income-tax Act, for only FY 17 and FY18 by June 30.

Section 269SS prohibits a person from accepting cash loan or deposit of Rs 20,000 or above from another person.

CBDT has further asked field officers to locate cases where income accruing from capital gains on sale of land or real estate is not disclosed, as per Section 50C and income from other sources as per Section 56(2)(vii) and submit the reports by June 30.

Moreover, the board has also asked Chief Commissioners to allow disposal of appeals of more than Rs 10 lakh in case a Commissioner (Appeals) does not have adequate number of appeals up-to Rs 10 lakh, in order to meet the 150-appeal target by June 30.

CBDT has also set a target of verification of at least 8 cases per month for each Deputy Director or Assistant Director of Income-tax and 17 cases per month for each Income Tax Office with respect to non-PAN or demonetisation/FATCA /CRS/Special Pilot Project related data, as per the interim action plan set for April-June to its field formations.

June 30 has also been set as the deadline by the tax body for disposal of assessments in at least 25 cases (20 in international taxation) per assessing officer of limited scrutiny, reopened assessment under Section 147 and demonetisation related cases.

The board has directed the officers to undertake these assessments through the e-proceeding platform.

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