Procedure for Filing Form 67 When Claiming Foreign Tax Credits
March 20, 2018
Agreement To Avoid Double Taxation Between India and Hong Kong
April 3, 2018

Revised Procedure for Issuing Notices u/s 142(1)

The past decade has seen a major shift in the way things are done and processed.  With so many processes moving online, it was no surprise when tax filing also moved online.  Following closely on the heels of online tax filing, notices, which were previously intimated through post, are also now moving online.

Upon filing your income tax return, if any mismatches/mistakes are found, then a scrutiny notice would be sent to you by the Income Tax Department either u/s. 143(2) Regular Scrutiny Assessment or u/s 148 Income Escaping Assessment.  Scrutiny notices u/s 143(2) can be sent anytime within six months post the end of the Assessment Year. Prior to receiving the notice, or simultaneously, a notice would be sent to the taxpayer, intimating the individual of the inquiry before assessment u/s 142(1). The recent CBDT instruction 01/2018 dated 12th February 2018 issued a direction saying that except for search related assessments,  scrutiny assessments will be carried out through online processing only.  From now onwards, notices u/s 142(1) will also be sent online to the individuals e-filing account on the Income Tax’s e-filing portal.

In cases, where the taxpayer has already received a notice u/s 142(1), he/she will be sent an SMS/EMAIL, so that he/she may submit the proofs/documents online at the e-filing website.  Some key guidelines for the new online submission process is:Notice will be issued to

  1. individual in his/her e-filing account on the e-filing portal
  2. Digital signatures will be used by AO to sign all communication/notices etc.
  3. Online response must be filed before the end of working hours on the date stipulated.
  4. Before the final order is passed, in relation to the assessment, the facility for submitting the requested documents/proof, will be closed seven days before the completion of the proceedings, unless AO approves of extension in submission of proofs in special circumstances.
  5. On special occasions, the submission of proofs may take place manually if:
    a.    Account books must be examined
    b.    Third party inquiries/investigations are carried out
    c.    Witness needs to be examined
    d.    Taxpayer requests for personal hearing to explain the situation
    6.    All records will be filed electronically from henceforth.

Click here to read entire circular 1 & circular 2.