I-T dept won’t re-assess tax cases closed before April 1’ | cckerala.com

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I-T dept won’t re-assess tax cases closed before April 1’

In a bid to mollify harried foreign investors, Finance Minister Pranab Mukherjee today reiterated that I-T assessments, which have been completed will not be reopened by the Income Tax department under the retrospective amendment proposed in the Finance Bill, 2012.

The minister also said the department has also done away with multi-level tax deducted at source (TDS) on software distributors.

The Central Board of Direct Taxes (CBDT) has written to all chief commissioners of income tax and directors general of international taxation clarifying that cases where assessment proceedings had been finalised before April 1, 2012 would not be opened.

The retrospective amendment is likely to impact around 10 cases that are pending at various levels, including Euro Pacific Securities Ltd, Cairn UK Holding Ltd, Unilever HPC Finance Service Inc. USA, Accenture Services Pvt Ltd, Tata Industries Ltd and AT&T, Mcleod Russel India, SAB Miller (A&A), and Sanofi Pasteur Holding SA. The exchequer is estimated to gain around Rs 15,000 crore from the amendment.

“I gave a commitment in Parliament with regard to retrospective amendments that CBDT will issue a policy circular to clarify that in cases where assessment proceedings have become final before first day of April 2012, such cases shall not be reopened,” Mukherjee said at an event here.

As a reprieve to software distributors, Mukherjee announced that the income tax department will soon issue a circular to avoid multi-level taxation of software. “On the advice of (the advisory) group and Nasscom, I have approved issuance of a circular to avoid multi-level TDS on software under Section 194 J (of the Income Tax Act),” he said.

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Posted by on May 31 2012. Filed under Business India News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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