Tax Talk
Indian Developments

Direct Tax

Time limit for verification of return of income after uploading

Notification no. 2 of 2024 dated 31 March 2024

The CBDT clarified that where the return of income is uploaded and e-verification/lTR-V is submitted within 30 days of uploading, the date of uploading the return of income shall be considered as the date of furnishing the return of income. And where e-verification or ITR-V is submitted after 30 days of uploading, the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow, as applicable.

Furthermore, in case of verification through submitting a signed ITR-V at the Central Processing Centre (CPC), the date on which the duly verified ITR-V is received at CPC shall be considered to determine the 30-day period from the date of uploading of the return of income.

It is further clarified that where the return of income is not verified within 30 days from the date of uploading or till the due date for furnishing the return of income as per the Act - whichever is later - such return shall be treated as invalid due to non-verification.

Inoperative PAN

Circular no. 6/2024 dated 23 April 2024

As per Rule 114AAA of the Income tax rules, if PAN and Aadhaar are not linked, PAN becomes inoperative. As a consequence of the same, the deductors/collectors, while making payments to any of such inoperative PAN on or after 1 July 2023, shall deduct/collect tax at higher rates as specified under section 206AA/206CC, as the maybe.

With a view to redressing the grievances faced by deductors/collectors who have short deducted/collected tax due to non-linking of PAN and Aadhaar by deductee/collectee, the CBDT has specified that, for transactions entered into upto 31 March 2024 and in cases where the PAN becomes operative (as a result of linkage with Aadhaar) on or before 31 May 2024, there shall be no liability on deductor/collector to deduct/ collect tax at higher rates as specified under section 206AA/206CC, as the maybe.

However, the communication is silent as to how the already raised demands that have been settled will be catered to, and how the relief will be extended to such cases.

Extension of due date for filing of Form No. 10A/10AB

Circular no. 7/2024 dated 25 April 2024

To avoid and mitigate genuine hardship, the CBDT extends the due date of making an application/intimation electronically in Form No. 10A and Form No. 10AB till 30 June 2024, from the earlier date of 30 September 2023.

Hence, in cases where any trust, institution or fund has already made an application in Form No.10AB under the said provisions on or before the issuance of this Circular and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular, the pending application in Form No. 10AB may be treated as a valid application. And in case an order is passed rejecting the same solely because of late filing, the assessee can file a fresh application as per extended timelines.

Further, in cases wherein the assessee had filed for provisional registration due to non-filing of Form 10A within the due date and has been provided with a provisional certificate, can surrender the Provisional certificate and apply for registration in Form 10A within the extended time.

Transfer Pricing

CBDT sets a record by signing 125 APAs in FY 2023-24⁴

This update can be checked in detail here.

4. https://pib.gov.in/PressReleasePage.aspx?PRID=2018085

Indirect Tax

Foreign Trade Policy

DGFT’s directives on submission of digitized Aayat Niryat Forms (ANFs), Appendices, etc

Trade Notice No. 01/2024-25 dated 2 April 2024

With a view to streamline the processes, enhance transparency, and ensure accountable delivery systems to facilitate exports and imports, the DGFT has issued directives covering these aspects:

• Digitization of Aayat Niryat Forms (ANFs) and Appendices: Submission of digitized applications and forms exclusively on the DGFT website, eliminating the need for physical or soft copies.
• Online accessibility of Importer-Exporter Code (IEC), Registration Cum Membership Certificates (RCMCs), and MSME status: Integration of multiple electronic exchanges into the DGFT online systems has provided access to various digital certificates to DGFT HQ, without any requirement to upload physical copies.
• Digitalization of ANFs and Appendices requiring professional certification: Ongoing endeavors are directed towards digitalization of certain ANFs and Appendices which require certification by professionals such as Chartered Accountants, Chartered Engineers, Cost Accountants, Company Secretaries, etc. Until such digital signature certificates are fully implemented, copies of these documents may be uploaded online.
• Exclusive online correspondences: Without any physical correspondence, it is now required to respond to all deficiency letters exclusively online, including any other correspondence.

DGFT issues clarification on discharge of export obligation vis-à-vis Advance Authorizations issued under Foreign Trade Policy 2015-20

Policy Circular No. 01/2024 dated 12 April 2024

The DGFT has clarified as follows: