BUDGET 2020 - Assessment Procedure

Assessment Procedure

·         DRP forum not to be limited to TP issues only but to be allowed to non residents for all disputes.   It is proposed that any variation done by the AO which is prejudicial to the interest of the assesse (even if there is no impact on profits/losses) can be referred to DRP.

·         Penalty for false entry of invoice or omitted invoice @100% of such transactions under new section 271AAD.

·         Vivad se Vishwash Scheme  to reduce litigation. Only tax amount to be paid . Full waiver of interest and penalty .  In case of penalty and interest dispute which is not related to income only 25% of such interest and penalty to be paid. In case payment is made after 31.3.2020 the amount to be paid is 110% of tax in dispute and 30% in case of penalty. (Scheme not yet in public domain).

·         Survey under section 133A now only with the approval of CIT or DIT.

·         E Appeals system for appeal before CIT(A). ( Faceless Appeals)

·         E Penalty system before AO.

·         Due date of filing of Tax Audit report de linked from filing of return .  Tax Audit filing by 30th September  and Return filing by 31st October.

·         Tax Charter to made and brought into Statute books.

·         The scope of e-Assessment is proposed to be extended, so as to include the proceedings under Section 144 of the Act relating to best judgement assessment;

·         It is proposed to provide that stay under the first proviso to section 254(2A) shouldn’t be provided by ITAT unless assesse deposits or furnish security for at least 20% of the amount of tax, interest, fee, penalty, or any other sum payable under the provisions of this Act. The stay cannot exceed 365 days.

·         Insolvency Professional now can act as authorized representative ( sec 288).

·         New section 285BB replacing section 203AA towards rationising Form 26AS.

Amend clause (c) and (cd) of section 140 of the Act so as to enable any other person, as may be prescribed by the Board to verify the return of income in the cases of a company and a limited liability partnership.