Penalty Rationalization and Assessment procedures - What Budget says

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..... Penalty Rationalization and Assessment procedures - What Budget says - By: - CS Swati Dodhi - Budget - Dated:- 1-3-2016 - - Penalty Rationalization of existing penalty provisions Penalty to be levied in case of under-reporting and misreporting of income (w.e.f. 1 April 2017) Under-reported income: Penalty @ 50% of tax payable Misreporting of income: Penalty @ 200% of tax p .....

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..... ayable Under reporting defined objectively to be the difference between assessed income and income as per summary assessment Misreported income defined to cover: - Failure to report any international transaction - Misrepresentation or suppression of facts - Unsubstantiated claim of expenditure AO empowered to grant immunity from penalty / pros .....

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..... ecution not arising out of misreporting if applicable taxes and interest are paid Assessment procedures Increase in scope of deemed cases of income escaping assessment - Now Assessing officer has power to reopen cases on the basis of information or documents received from the prescribed income tax authority after processing, where it is noticed that either a return of income has .....

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..... not been filed or where return has been filed, such income has been understated or excess loss/deduction/allowance has been claimed.Effective from 1 June 2016. Summary assessment mandatory before detailed scrutiny assessment Reduction in time-limit for assessment/ reassessment by 3 months Interest receivable by the taxpayer - Assessees eligible for interest on refun .....

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..... d arising from self- assessment tax - Additional interest @ 3% if there is delay in giving effect to appellate orders Order of DRP not appealable by tax authorities going forward Mandatory stay if assessee pays 15% of disputed demand pending appeal Application for stay of tax demand to be disposed off within 12 months - - Scholarly articles for knowledge s .....

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..... haring authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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