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TMI BlogBudget 2012 - Assessment proceduresX X X X Extracts X X X X X X X X Extracts X X X X ..... Budget 2012 - Assessment procedures - By: - Swati Dodhi - Income Tax - Dated:- 19-3-2012 - - Budget 2012 Extension of time limit for completion of assessment proceedings For assessment proceedings relating to assessment year 2010-11 and onwards (excluding assessment proceedings where a reference is made to the Transfer Pricing Officer, TPO), the time limit will be 2 years. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessment proceedings relating to assessment year 2009-10 and onwards where a reference is made to the TPO, this time limit will be 3 years. Currently, the time limit for completion of assessment proceedings is 21 months or 33 months (where a reference is made to the TPO) from the end of the assessment year. Similar extension of the time limit by 3 months has been made for completion of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings in cases of reassessment, fresh assessment, assessment after search and requisition and Wealth-tax assessment. For the completion of assessment and reassessment where the Revenue authorities seek information from foreign tax authorities under the relevant DTAA, exclusion from the period of limitation, is increased from 6 months to 1 year. The above amendment will be effective from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 July 2012. Exemption from processing of Income-tax returns in certain cases Presently, every income-tax return is to be processed by the Revenue authorities (i.e. verified for arithmetical errors and apparent incorrect claims) prior to granting a tax refund. In such cases, the income-tax return may have already been selected for a scrutiny assessment, which can potentially lead to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax demand being raised on the taxpayer. Now, it will not be necessary for the Revenue authorities to process the Income-tax return or grant a tax refund where a scrutiny assessment has been initiated in respect of such income-tax return. This amendment will be effective from 1 July 2012. Reassessment proceedings Time limit has been increased to six years from two years to is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue notices for initiating reassessment proceedings on a taxpayer as an agent of a non resident from the end of the relevant assessment year. The above amendment will be effective from assessment year beginning 1 April 2012. Income escaping assessment in relation to asset located outside India Income chargeable to tax shall be deemed to have escaped assessment where a person is found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o have any asset (including financial interest in any entity) located outside India. The time limit for reopening an assessment has been increased to 16 years, in respect of chargeable income escaping assessment in relation to any asset (including financial interest in any entity) located outside India. At per present ruling, time limit for issue of notice for reopening an assessment is six year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Presently, where assessment has been made, no action to be taken after expiry of four years from end of relevant assessment year, unless income has escaped assessment due to failure on part of the taxpayer to file a return or disclose all material facts necessary for assessment. This does not apply to cases of income in relation to asset located outside India, escaping assessment. Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions will be applicable for any assessment year beginning on or before 1 April 2012. Similar provisions will also be incorporated in the Wealth-tax Act. These amendments will be effective from 1 July 2012. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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