Archive for the ‘General’ Category

CPC Bangalore has been set up for faster processing of all e-filed returns of the country. E-filing facility for Income Tax payers are currently being provided from New Delhi. These facilities will soon be made available out of CPC Bangalore premises. Many taxpayers have been reported difficulties in e-filing their returns of Income. To make, a limited 5 member call center is being setup at CPC Bangalore premises. This new e-filing call center will start working from 15th March 2012. For any query related to online filing of Income Tax Returns, please call 080-25186960 between 9am to 6 pm on all working days. Taxpayers are advised to make use of the above facility to clarify their doubts on E filing.

Source: The Institute of Chartered Accountants of India.

Frequency Norms of Audit for Service Tax Assessees

Director General of Audit, New Delhi has prepared Service Tax Audit Manual, 2010.

As per the guidelines, tax payers whose annual service tax payment (including cash and CENVAT) was Rs.3 crore or more in the preceding financial year may be subjected to mandatory audit each year.

It is preferable that Audit of all such Units is done by using Computer Assisted Audit Program (CAAP) techniques.

The frequency of audit for other taxpayers would be as per following norms:-

i. Taxpayers with Service Tax payment above Rs.3 crores (Cash + CENVAT) (MANDATORY UNITS) – to be audited every year.

ii. Taxpayers with Service Tax payment between Rs.1 crore and Rs.3 crores (Cash + CENVAT) – to be audited once every two years.

iii. Taxpayers with Service Tax payment between Rs.25 lakhs and Rs.1 crore (Cash + CENVAT) – to be audited once every five years.

iv. Taxpayers with Service Tax payment upto Rs.25 lakhs (Cash + CENVAT) – 2% of taxpayers to be audited every year.

The Audit selection guidelines, therefore, would apply to the non-mandatory taxpayers, forming part of the discretionary workload.  These taxpayers should be selected on the basis of assessment of the risk potential to revenue.  This process, which is an essential feature of audit selection, is known as Risk Assessment.  It involves the ranking of taxpayers according to a quantitative indicator of risk known as a “risk parameter”.  It is also suggested that the taxpayers whose returns were selected for detailed scrutiny, may not be taken up for Audit that year, to avoid duplication of work.  Similarly, the taxpayers who have been selected for Audit, may not be taken up for detailed scrutiny of their ST-3 Returns during that year.

The Service Tax Audit Manual, 2010 is in the process of finalization and publication by D.G. Audit, New Delhi. In the circumstances, till the same is published, the existing instructions on audit shall continue.


Cost Inflation Index (CII) – From Financial Year 1981-82 to 2011-12 (Table-Wise)

Financial Year Cost of Inflation Index (CII)
1981 – 82 100
1982 – 83 109
1983 – 84 116
1984 – 85 125
1985 – 86 133
1986 – 87 140
1987 – 88 150
1988 – 89 161
1989 – 90 172
1990 – 91 182
1991 – 92 199
1992 – 93 223
1993 – 94 244
1994 – 95 259
1995 – 96 281
1996 – 97 305
1997 – 98 331
1998 – 99 351
1999 – 00 389
2000 – 01 406
2001 – 02 426
2002 – 03 447
2003 – 04 463
2004 – 05 480
2005 – 06 497
2006 – 07 519
2007 – 08 551
2008 – 09 582
2009 – 10 632
2010 – 11 711
2011 – 12 785


General Circular No: 32/2011 dated 31/05/2011 read with 66/2011 Dated 4/10/2011, Ministry of Corporate Affairs has mandated providing Income-tax Permanent Account Number (Incometax PAN) for obtaining Director Identification Number (DIN) in case of Indian nationals. All existing DIN holders who have not furnished their PAN earlier at time of obtaining DIN are also required to furnish PAN details by filing DIN-4 form on MCA21 by 15th December, 2011.

In addition, in case of those DIN holders who have furnished their PAN earlier, there may be mismatch between particulars provided in their DIN application (i.e. name or father’s name or date of birth) with Income Tax PAN details. Such DIN holders are also required to correct their particulars in DIN data base by filing Form DIN4; In case of correction needed in PAN data base, they need to apply to Income Tax authorities and then file correct information with MCA21 using DIN4 form. This activity is also to be completed by 15th December, 2011.

E-mails have been sent to such DIN holders who are covered in the above categories, viz nonavailability of PAN or mismatch of PAN with DIN, and whose e-mail addresses are available in the MCA21 system. However, there are such DIN holders also whose e-mail addresses are not available in MCA21 system. All such cases of non-availability of PAN or mismatch between PAN and DIN have been made available in MCA21 Portal. You are advised to visit the MCA21 Portal to check your details and to file the DIN4 form wherever required. Filing information under DIN4 form is free of any charges.

Non-provision of PAN details or any mismatch in DIN and PAN information will be treated as default and such DINs may be disabled for access of MCA21 System after December 15, 2011.

Source: Ministry of Corporate Affairs

1. Please use Ink Jet /Laser printer to print the ITR-V Form.

2. Avoid printing on Dot Matrix printer.

3. The ITR-V Form should be printed only in black ink.

4. Do not use any other ink option to print ITR V.

5. Ensure that print out is clear and not light print/faded copy.

6. Please do not print any water marks on ITR-V. The only permissible watermark is that of “Income tax Department” which is printed automatically on each ITR-V.

7. The document that is mailed to CPC should be signed in original in BLUE INK.

8. Photocopy of signatures will not be accepted.

9. The signatures or any handwritten text should not be written on Bar code.

10. Bar code and numbers below barcode should be clearly visible.

11. Only A4 size white paper should be used.

12. Avoid typing anything at the back of the paper.

13. Perforated paper or any other size paper should be avoided.

14. Do not use stapler on ITR V acknowledgement.

15. In case you are submitting original and revised returns, do not print them back to back. Use two separate papers for printing ITR-Vs separately.

16. More than one ITR-V can be sent in the same envelope.

17. Please do not submit any annexures, covering letter, pre stamped envelopes etc. along with ITR-V.

18. The ITR-V form is required to be sent to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100, by ordinary post or speedpost.

19. ITR-Vs that do not conform to the above specifications may get rejected or acknowledgement of receipt may get delayed.

Source: Income tax India.