Money & Banking

Open camp office in Kerala: Court to CBDT

Vinson Kurian Thiruvananthapuram | Updated on December 31, 2018 Published on December 31, 2018

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This is among the key directions issued with respect to tax-payers affected by the August floods who were required to file the tax audit report

The High Court of Kerala has directed the Central Board of Direct Taxes (CBDT) to set up a camp office in Kerala for the purpose of alleviating the burden of tax payers in the State.

Kerala floods

This is among the key directions issued with respect to tax-payers affected by the August floods who were required to file the tax audit report along with their income tax returns for the year ending March 31, 2018.

The directions were issued in a case of Alwaye Chartered Accountants Association, according to Sherry Oommen, Head-Tax and Corporate Laws, Nash Capital Partners. For those assessees who have filed their return either before October 31, 2018, or later and paid interest under section 234A, or late filing fees under Section 234F, an application should be preferred to the Central Board of Direct Taxes by January 5, 2019, seeking refund/waiver of the related levies.

Further, if there is a loss/denial of any exemption/deduction while filing the return, a similar application may be preferred under Section 119(2)(b) of the Income tax Act, 1961, Sherry Oommen quoted the court directives as saying.

With respect to those assessees who are yet to file their returns, an application may be preferred under Section 119(2)(a) by January 5, 2019, seeking extension of the due date having regard to related facts.

The CBDT is required to dispose of the above-mentioned applications within two months of receipt of the related applications after affording the assessees an opportunity of being heard. The directives would indeed alleviate the hardship of taxpayers who have been impacted by the floods, Sherry Oommen said.

Notably, in respect of assessees who are yet to file their returns, an extension could be sought to such suitable date depending on the related facts. However, it is imperative that the applications are filed no later than January 5, 2019.

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Published on December 31, 2018
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