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Ministry of Commerce & Industry
Department of Commerce notifies rules for Work from Home for Special Economic Zones
WFH allowed for a maximum period of one-year; may be extended to maximum 50% of total employees including contractual employees
Development Commissioners of SEZs empowered to extend it beyond one-year and for more than 50% of total employees
Notification provides a transition period of 90 days to SEZ units to seek approval, whose employees are already WFH
Notification, a boon to large number of IT/ITES employees working in SEZs; Addresses a long-pending demand of the industry;
Dated: 19 JUL 2022
The Department of Commerce has notified a new Rule, namely Rule 43A - Work from Home in Special Economic Zones Rules, 2006 across all Special Economic Zones. The notification was issued on demand from the industry for making a provision for a country wide uniform Work From Home (WFH) policy across all Special Economic Zones. The Department of Commerce thereafter held several rounds of discussions with various stakeholders before firming up the notification.
The notification under Rule 43A provides work from home for following category of employees of a unit in SEZ:
i. Employees of IT/ITeS SEZ units
ii. Employees, who are temporarily incapacitated
iii. Employees, who are travelling
iv. Employees, who are working offsite
As per the new notification, WFH may be extended to maximum 50% of total employees including contractual employees of the unit. There is flexibility granted to Development Commissioner (DC) of SEZs to approve a higher number of employees (more than 50%) for any bona-fide reason to be recorded in writing.
Work From Home is now allowed for a maximum period of one-year. However, same may further be extended for a period of one year at a time by the DC on the request of units. In respect of SEZ units whose employees are already working from home, the notification has provided a transition period of 90 days to seek approval.
SEZ Units will provide equipment and secured connectivity for the purpose of WFH to perform authorized operations of the units and the permission to take out the equipment is co-terminus with the permission granted to an employee.
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AM/MS
(Release ID: 1842710)
Note on ‘e-Proceedings’
(For cases under International Taxation and Central Charges)
1. As a part of e-governance initiative, to facilitate conduct of assessment proceedings electronically, Income-tax Department has developed the ‘e-Proceedings’ facility. It is a simple way of communication between the Department and assessee in a hassle-free manner, through electronic means, without the necessity to visit Income-tax Office for conduct of assessment proceedings. This new facility is also environment friendly as assessment proceedings have now become paperless.
2. In assessment proceedings through the e-Proceedings’ functionality, there is a seamless flow of letters, notices, questionnaires, orders etc. from Assessing Officer to assessees’ e-Filing account. On receipt of Departmental communication, assessee is able to submit his response along with attachments, if any, by uploading the same on the e-Filing portal. The response submitted by the assessee is also viewed by the Assessing Officer electronically. Thus, besides saving precious time of the taxpayer, ‘e-Proceedings’ also provides a 24X7 anytime/anywhere convenient facility to submit response to the Departmental queries in course of assessment proceedings.
3. In proceedings being carried out through the ‘e-Proceedings’ facility, assessee retains complete information of all e-submissions made during the course of assessment proceedings in his e-filing account, which is very useful for reference & record purposes.
4. In cases under e-Proceedings’, physical hearing/attendance may take place in following situation(s):
I. where books of accounts have to be examined; or
II. where provision of section 131 of Income-tax Act, 1961 has been invoked; or
III. where examination of witness is to be made by assessee or Assessing Officer; or
IV. where a show-cause notice contemplating any adverse view is issued and assessee requests for personal hearing to explain the matter.
5. The response to the notice" if any, is to be submitted to the Assessing Officer by the assessee through ‘e-Proceedings’ facility, as mentioned above.
6. This taxpayer friendly measure has substantially reduced the compliance burden for assessees. The assessees who do not yet have an e-Filing account, are requested to get themselves registered by visiting the home page of website https://www.incometax.gov.in .
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Note on ‘Faceless-Assessment’
(For cases under faceless assessment)
Faceless Assessment is a step forward towards bringing in an efficient and transparent tax regime in the country. The salient features of Faceless Assessment are as under:
i. A National Faceless Assessment Centre (NaFAC) has been set up to facilitate the conduct of Faceless Assessment proceedings in a centralized manner.
ii. Further to facilitate the conduct of Faceless Assessment various Assessment Units, Verification Units, Technical Units, Review Units have been set-up.
iii. All communication with the assessee or any other person for the purpose of making faceless shall be made in electronic mode.
iv. An electronic record shall be authenticated by the NaFAC by sending it through electronic communication while an electronic record shall be authenticated by respective Units by their digital signature. An electronic record originated by the assessee or any other person shall be authenticated by affixing his digital signature if he is required under the rules to furnish his return of income under digital signature and in any other case affixing his digital signature or under electronic verification code.
v. Every notice, order or any other electronic communication shall be delivered to the assessee by way of -
a) Placing an authenticated copy thereof in the assessee’s registered account or
b) Sending an authenticated copy thereof to the registered e-mail address of the assessee or his authorized representative or
c) Uploading an authenticated copy on the assessee’s Mobile App and followed by a real time alert.
vi. The assessee shall file his response to any notice or order or any other electronic communication through his registered account on the e-filing website www.incometax.gov.in and once an acknowledgement is sent by the National Faceless Assessment Centre containing the hash result generated upon successful submission of response, the response shall be deemed to be authorized.
vii. A person is not required to appear before the Centre or any unit either personally or through authorized representative. Personal hearing, if required, shall be conducted through video conferencing or video telephony, to the extent technologically feasible, in following situation(s):
i. In a case where a variation is proposed in the income or loss returned, the assessee or his authorized representative, as the case may be, may request for personal hearing on the e-filing portal www.incometax.gov.in so as to make his oral submissions or present his case before the income-tax authority of the relevant unit and the income-tax authority of the relevant unit shall allow such hearing. ( Procedure for seeking of personal hearing is available at the end of this note.)
ii. Where any examination or recording of the statement of the assessee or any other person (other than statement recorded in the cause of survey under section 133A of the Act) is required.
viii. Pr.CCIT(NaFAC) may, at any stage of the assessment, if considered necessary, transfer the case to the Assessing Officer having jurisdiction over such case, with the prior approval of the Board. For further details, please refer to Section 144B of the Act at www.incometaxindia.gov.in.
Procedure for seeking personal hearing
1. Seeking personal hearing through Video Conferencing
Step 1: The Assessee shall Logon to the ‘e-Filing’ portal www.incometax.gov.in
Step 2: The Assessee shall select "e-Proceeding" under "Pending Actions" menu. Proceeding details are classified under three tabs "Self", "Of Other PAN/TAN" & "As Authorized Representative”. The Assessee can select applicable tab.
Step 3: A screen showing details of proceedings such as proceeding name, assessment year, PAN, proceeding limitation date, proceeding closure date will appear.
Step 4: The Assessee shall click on "View Notice" button of proceeding to view notice details. Additional proceeding details such as notice/communication reference id, notice section, notice description, document id, notice issue date, response due date, will be displayed.
Step 5: The Assessee shall click on “Seek Video Conferencing” button against a particular notice. A new screen will open with details of notice. The Assessee shall select appropriate item from drop-down menu under the ‘Reason for seeking video conferencing’ field, enter details of the reason in the textbox and attach relevant document (if any).
Note: “Seek Video Conferencing” button will be available only in respect of Show-cause notice/Summons u/s 131(1)(b) issued to Assessee/third party in cases under faceless assessment.
Step 6: The Assessee shall click on “Submit” button. A success message will be displayed confirming the submission of request.
2. Post approval of Video Conferencing Request by Faceless Assessment Unit
3. Seeking adjournment of Video Conferencing Request
• Follow steps 1 to 4 of Seeking personal hearing through Video Conferencing
• Step 5: The Assessee shall click on “Seek Video Conferencing” button against a specific notice. A new screen will open with details of earlier submitted request. The assessee shall click on ‘Seek Adjournment of video conferencing’ button.
• Step 6: The Assessee shall select ‘Reason for Seeking adjournment of Video Conferencing’ and enter relevant details and submit request.
• Once the adjournment request is approved by the Faceless Assessment Unit, new line item with Updated status, VC Scheduled Date & Time, Link along with other details be displayed in e-Filing portal under e-Proceedings tab.
Note:
After successful conduct of personal hearing through Video Conferencing, Video conferencing Recording link will be available on e-Filing portal under e-Proceedings menu.
Video conferencing adjournment can be sought only once for a notice and the same can be sought up to the VC Scheduled time or response due date, whichever is earlier.
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Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 11th July, 2022
PRESS RELEASE
Income Tax Department conducts searches on two real estate groups of Bengaluru and Hyderabad
Income Tax Department carried out search and seizure operations on two leading real estate groups of Bengaluru and Hyderabad, engaged in the business of construction/sale/leasing of commercial/residential space, and educational and hospitality services. The search action covered more than 40 premises located in Bengaluru, Hyderabad and Chennai.
During the course of the search operations, several incriminating documents and digital evidences have been seized. The preliminary analysis of seized evidences has revealed that the land owners had entered into Joint Development Agreement (JDA) with a Bengaluru-based developer. They have received super built-up area from developer in lieu of the land given to the developer for the development of various projects. However, the land owners failed to declare the capital gains accruing from the transaction, though completion certificates for the projects have been obtained. The amount of such undisclosed capital gains is estimated at more than Rs. 400 crore.
The initial analysis of the seized documents has also revealed that these groups have suppressed income to the tune of Rs. 90 crore in respect of the revenue recognizable from the sale of units in real estate. Further, both the groups have indulged in tax-evasion by inflation of expenses in the construction and development business to the tune of Rs. 28 crore, having claimed bogus purchases and resorted to over-invoicing of the construction materials.
It has also been found that interest-bearing borrowed funds have been diverted to related entities/parties for non-business purposes by the main entities of both the groups. Instances of the transactions involving advances/loans between the
group companies have also been found, which partake the character of deemed dividend and hence liable to be taxed as income.
In the case of a trust covered in the search action, it has been found that the trust has failed to utilize, within the specified permissible time limit, the accumulated amount of Rs. 40 crore for the specified purpose as per the objects of the registered
trust deed.
So far, the search action has led to the seizure of undisclosed cash of Rs 3.50 crore and gold, silver, jewellery worth Rs. 18.50 crore.
Further investigations are in progress.
(Rakesh Gupta)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 8th July, 2022
PRESS RELEASE
Income Tax Department conducts searches on Pharmaceutical Manufacturers and Distributors in Haryana and Delhi-NCR
The Income Tax Department carried out search and seizure operations on 29.06.2022 on a group engaged in the business of manufacturing and distribution of Pharmaceutical medicines and Real Estate Development. The search action covered 25 premises in Delhi-NCR and Haryana.
A large number of incriminating documents in the form of loose sheets and digital data have been found and seized. These documents reveal that the group was involved in huge unaccounted sales of pharmaceutical medicines in cash. Large amount of purchases, payments of wages and other expenses were also found to have been made in cash.
This modus-operandi of unaccounted cash sales of pharmaceutical medicines, including cash receipts through hawala for sale of medicines to Afghanistan, has been admitted by a key person involved in such transactions. The preliminary analysis of the seized data indicates that such hawala cash receipts amount to Rs. 25 crore approximately. In the case of one pharmaceutical concern dealing in Active Pharmaceutical Ingredients (API), surplus stock valued at Rs. 94 crore has been found.
It is also found that the cash generated through unaccounted cash sales has been invested in purchase of immovable properties, and in expansion of manufacturing facilities of Pharmaceutical medicines. The real estate entities of the group are found to be engaged in out-of-books sale and purchase of properties in cash. The group has also been booking bogus Long Term/ Short Term Capital Losses in the securities market to offset the capital gains earned on such property transactions. The amount of such bogus losses is estimated to be around Rs. 20 crore. The search action has revealed that the group has also floated benami entities to purchase immovable properties in the State of Himachal Pradesh.
So far, unaccounted cash of Rs. 4.2 crore and jewellery/bullion worth Rs. 4crore have been seized.
Further investigations are in progress.
(Rakesh Gupta)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
Press Information Bureau
Government of India
Ministry of Finance
Dated: 20 JUN 2022
Sovereign Gold Bond Scheme 2022-23 (Series I) – Issue Price
In terms of Government of India Notification No.4(6)-B(W&M)/2022 dated June 15, 2022, Sovereign Gold Bonds 2022-23 (Series I) will be opened for subscription during the period June 20-24, 2022 with Settlement date June 28, 2022. The issue price of the Bond during the subscription period shall be ` 5,091 (Rupees five thousand ninety one only) per gram, as also published by RBI in their Press Release dated June 17, 2022.
Government of India in consultation with the Reserve Bank of India has decided to allow discount of ` 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be ` 5,041 (Rupees five thousand forty one only) per gram of gold.
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RM/MN/KMN