Income tax alert: Important updates for taxpayers

Income tax alert: Important updates for taxpayers

The Central Board of Direct Taxes (CBDT) has made a number of important announcements for income taxpayers. The deadline for filing income tax returns (ITRs) is over but there are key provisions which taxpayers may look into.

The CBDT has extended the last date for filing of Form No 10AB, relaxed provisions of ax Collected at Source (TCS) under Section 206C(1G) of IT Act, 1961, and entered into 62 Advanced Pricing Agreements (APA) in financial year 2021-22 with taxpayers.

In consideration of difficulties in online filing of Form No. 10AB as stipulated in Rule 2C or 11AA or 17A of the Income-Tax Rules, 1962, the CBDT extended the last date for online filing of Form No. 10AB.

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CBDT entered into 62 Advanced Pricing Agreements (APA) in FY 2021-22 with taxpayers including 13 Bilateral and 49 Unilateral APAs.

The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and the arm’s length price of international transactions in advance for the maximum of five future years.

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Further, the taxpayer has the option to rollback the APA for four proceeding years, as a result of which, a total of nine years of tax certainty is provided.

Domestic tour operators were facing difficulties in collection of tax from non-resident individuals visiting India who were booking overseas tour packages from such domestic tour operators. Since such persons may not have a Permanent Account Number (PAN), tax is required to be collected at higher rates. Further, such non-residents may find it difficult to furnish their ITR and claim refunds.

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In order to remove such difficulties, the Central Government relaxed provisions of TCS under section 206C(1G) of the Income Tax Act, 1961 in respect of non-resident individuals visiting India.

Source:-indiatoday

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