Income Tax Department issued an Advisory on Phishing, Fraudulent Refund E-mail

Taxpayers are requested not to respond to any email or any type of communication sent to them requesting them to furnish their personal particulars such as Bank account details, passwords, OTP etc. purported to be from the Income Tax Department.

The Income Tax Department does not seek any such information through email or any other mode of communication from the taxpayers.

If you have received any such fraud mails, kindly do not respond and register a complaint by forwarding the actual phishing email as per procedure and details given in http://www.incometaxindia.gov.in/Pages/report-phishing.aspx

Advisory :

If you receive an e-mail from someone claiming to be the authorized by Income Tax Department or directing you to an Income Tax website:

Do not reply.

Do not open any attachments. Attachments may contain malicious code that will infect your computer.

Do not click on any links. If you clicked on links in a suspicious e-mail or phishing website then do not enter confidential information like bank account, credit card details.

Do not cut and paste the link from the message into your browsers, phishers can make link look like real, but it actually send you to different websites.

Use anti-virus software, anti spyware, and a firewall and keep them updated. Some phishing e-mails contain software that can harm your computer or track your activities on the internet without your knowledge. Anti-virus & Anti-spyware software and firewall can protect you from inadvertently accepting such unwanted files.

Reporting:

If you receive an e-mail or find a website you think is pretending to be of Income Tax Department, forward the e-mail or website URL to phishing@incometax.gov.in. A copy may also be forwarded to incident@cert-in.org.in

You may forward the message as received or provide the Internet header of the e-mail. The Internet header has additional information to help us locate the sender.

After you forward the e-mail or header information to us, delete the message.

If you receive a phishing mail not pertaining to the Income Tax Department, forward the same to incident@cert-in.org.in???

Source: https://incometaxindiaefiling.gov.in/

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Income Tax – Don’t panic if your return is under taxman's scrutiny

For most taxpayers, scrutiny or audit of tax return means long-drawn hassles, furnishing multiple documents and negotiating with officials. Tax returns are randomly selected for scrutiny, where the income-tax officer seeks additional information to verify the taxable income as stated by the assessee. The notice is given under Section 143(2) of Income-Tax Act, asking the assessee to visit the department’s office and produce additional documents. A receipt of a notice does not indicate any crime; it simply means an investigation to find out if any income has escaped assessment.

An individual need not panic if his case is up for scrutiny and must reply to all queries raised either through a letter or by appearing in person. The tax official can demand salary certificate or Form 16, which gives details of gross salary paid and taxes deducted, rent receipts and rent agreement with the landlord, if any rent exemption is claimed, and bank statements. The TDS certificate in Form 16A must be preserved and produced before the income-tax official.

The income-tax department can send the notice within a year from the end of the month in which the assessee filed the return. The notice has a predefined format with the taxpayer’s name, address, Permanent Account Number and the year for which it has been issued, as well as the date and time when the taxpayer should appear before the income-tax officer.

The assessee can also take help from a chartered accountant and produce all documentary evidence to support the tax positions in his return. If one plans to send an authorised representative, a valid power of attorney in his favour is required. If the assessee or his representative cannot be present, an adjournment application should be filed before the date of hearing.

In most cases, the tax official will look into the bank details of the taxpayer and examine cases of interest-free loans, if any, interest earned from fixed deposits, capital gains from mutual funds, etc. Documents supporting them must be preserved for at least three previous financial years and must be produced on demand. Tax experts say most assessees do not preserve these documents and do not even bother to update their passbooks.

The income-tax official will also look at any windfall gains the taxpayer may have received. Proper records should be maintained of the gifts received, including gift deed, as gifts received from non-relatives over R50,000 would be taxable as income of the receiver. However, gifts from relatives and those received on marriage of the individual are exempt without any limit.

After examining the details, the income-tax official will forward the assessment order and the taxpayer’s file to the commissioner of income tax or the additional commissioner. For the income-tax department, the scrutiny and assessment must be completed within 21 months from the end of the relevant assessment year. One must cooperate with income-tax officials as failure to do so will lead to completion of assessment on a “Best Judgment” basis, which means the department can confirm the assessment and finalise one’s income and tax liability.

Source: Financialexpress

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Govt. urges Tax Payers to disclose true income & pay Tax.

   Government Once again urges all Tax Payers to Disclose their true income and pay Appropriate Taxes within the Current Financial Year;

   Nodal Cell set up to Capture the Response and take Follow-up Action; an Online Monitoring System to Ensure Follow-up Action and Track Return Filing and Tax Payment of the Target Segment.

   The Union Finance Minister Shri P. Chidambaram has repeatedly emphasized that there is need for a non–intrusive tax administration to enable the tax payer to file his return and pay appropriate taxes.

   In the statement made by the Revenue Secretary to the media on 10th December 2012, he had stated that there is no advantage in suppressing the true income or avoiding paying income tax that is due because, sooner or later, the information available with the Income Tax Department will lead the department to the doors of such persons.

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Web Based Status Tracking Facility Launched to Check Corruption in Income Tax Refunds.

   Instances of alleged corruption for settlement of refund claims and complaints come to notice from time to time. Whenever any such instance or complaints comes to notice, the same is verified and if it is found to be correct, the concerned officers/officials have to face penal consequences depending on the facts and circumstances of the case.

   The process of issue of refunds has been streamlined in the course of computerization and encouraging e-filing of returns for speedy processing and issue of refunds through refund banker scheme. A web based status tracking facility for refunds has also been launched. The grievance redressal mechanism has been strengthened for ensuring prompt disposal of all such complaints.

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'Refund Banker Scheme' - Check your Income Tax Refund status through online.

   The Income Tax Department has already  introduced the provision to know the status of Income Tax Refund through online. As shown in the official website of TIN-NSDL you can verify the status of refund for the assessment year 2003-04 to 2013-14. Taxpayers can view status of refund 10 days after their refund has been sent by the Assessing Officer to the Refund Banker - by entering 'PAN' and 'Assessment Year' in the prescribed place of the webpage. The details are given for recollecting the information...

Tax Information Network of
Income Tax Department

REFUND STATUS

Refund Banker

   The 'Refund Banker Scheme,' which commenced from 24th Jan 2007, is now operational for taxpayers assessed all over India (except at Large Taxpayer Units) and for returns processed at CPC (Centralized Processing Centre) of the Income Tax Department at Bangalore.

   In the 'Refund Banker Scheme' the refunds generated on processing of Income tax Returns by the Assessing officers/ CPC-Bangalore are transmitted to State Bank of India, CMP branch, Mumbai (Refund Banker) on the next day  of processing for further distribution to taxpayers.

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Income Tax Department Starts Two More Taxpayer Friendly Initiatives : ‘Register for Home Visit’ and ‘Online Tax Help’

   In order to make the Income Tax Return filing experience even more convenient, the Income Tax Department has started two more taxpayer friendly initiatives ‘Register for Home Visit’ and ‘Online Tax Help’. To avail these facilities, a taxpayer must visit the website www.trpscheme.com and take help of trained professionals either online or at their homes. The taxpayer can choose between ‘online help’ or ‘home visit’.

   On choosing the option of online tax help, the taxpayer can fill in his tax related query along with his contact details. The online query will be resolved by tax experts through Email or Phone within 24 hours.

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How to claim your income tax refund?

   Have you failed to reporting some tax saving investment to your employer or did you make the investment after submitting your investment declaration to the employer? Then there is a possibility of you being eligible for a tax refund.

   "A tax refund could be due to the following: tax deduction at source at a rate higher than the actual tax payable; wrong (ie, higher) estimation of income while computing advance tax liability; not reporting all investments to the employer while the employer deducts taxes on salary; and claim of exemption in tax returns," says Sonu Iyer, tax partner, Ernst & Young.

   Most companies require employees to declare at the beginning of the financial year their proposed investments for tax exemptions/deductions. House rent and leave travel allowances are the common exemptions that can be claimed, while interest on housing loan, investments in PPF, NSC, ELSS, life insurance premiums, home loan principal repayment, stamp duty/registration fee,

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Procedure for Refund of Excess TDS Deducted/ Paid

CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011

   The procedure for regulating refund of amount paid by the deductor in excess of the tax deducted at source (TDS) and/or deductible is governed by Board circular No. 285, dated 21-10-1980.

   2. Subsequent to issue of circular No. 285, new sections have been inserted under Chapter XVII-B of the Income-tax Act, 1961. References have been received by the Board regarding inclusion of these sections also for the purpose of issue of refund of excess amount of the TDS deducted/deductible.

   3. In consideration of the above and in supersession of the circular No. 285, dated 21-10-1980, the Board prescribes the following procedure for regulating refund of amount paid in excess of tax deducted and/or deductible in respect of TDS on residents covered under sections 192 to 194LA of the Income-tax Act, 1961. This circular will not be applicable to TDS on non-residents falling under sections 192, 194E and 195 which are covered by circular No. 7/2007 issued by the Board.

   4. The excess payment to be refunded would be the difference between:

   (i) the actual payment made by the deductor to the credit of the Central Government; and
   (ii) the tax deductible at source.

   4.1 In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.

   4.2 In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned. However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.

   5. However, to avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:

   5.1 The applicant deductor shall establish before the Assessing Officer that:
   (i) it is a case of genuine error and that the error had occurred inadvertently;

   (ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and

   (iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.

   5.2 Prior administrative approval of the Additional Commissioner or the Commissioner (TDS) concerned shall be obtained, depending upon the quantum of refund claimed in excess of Rupees One Lakh and Rupees Ten Lakh respectively.

   5.3 After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor

.

   6. In view of provisions of section 200A of the Income-tax Act prescribing processing of statement of TDS and issue of refund with effect from 1-4-2010, this circular will be applicable for claim of refunds for the period upto 31-3-2010.

________________________________

Analysis of CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011

   If a deductor has deposited excess amount of TDS , the procedure for getting refund was given in Board Circular 285 dated 21-1-1980. Now CBDT has issued new circular in this respect.

   This Circular 2/2011 is issued in suppression of circular No 285 / 21-10-1980 It covers TDS sections 192 to 194LA

   It does not cover TDS on non-resident payments i.e. section 192, 194E and 195 ( which are separately covered by circular No. 7/2007)

   It covers refunds for the period upto 31-03-2010 .

   Refunds for period thereafter will be covered under provision of section 200A which prescribes processing of TDS Statements

Excess to be refunded :

The excess payment to be refunded would be the difference between:
   the actual payment made by the deductor to the credit of the Central Government; and
   the tax deductible at source

Excess payment discovered during financial year

   In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.

Excess payment discovered after financial year

   In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned.

   However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.

Safeguards to avoid double claims

   To avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:

   The applicant deductor shall establish before the Assessing Officer that:

     (i) it is a case of genuine error and that the error had occurred inadvertently;
     (ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and

     (iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.

   Prior approval of the Additional Commissioner is required for refund in excess of Rs. 1 Lakh
   Prior approval of the Commissioner is required for refund inexcess of Rs. 10 Lakhs
   After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.

Source;Tax Guru

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