The latest circular for transfer of assets
Under the latest circular of the central board of direct taxes, an accessing officer (AO) is instructed to follow the guidelines provided; for permitting the taxpayer to create an in charge of the assessor transfer the assets under section 281 of the Income tax act, 1961.
An insight of the circular
For the above said action it is mandatory for a taxpayer to fill a form at least 30 days prior to the said date when the intended transaction is deemed to take place.
Apart from this, there are more guidelines which have to be followed by the AO concerned to grant prior permission while securing the transaction of asset under thesection 281. These are as follows:
- The AO can grant prior permission within 10 working days from the date of receipt of application provided there is no outstanding demand or likelihood of demand in the next six months is ought to arise in the name of taxpayer.
- In case of any outstanding demand in the name of taxpayer the AO can grant permission within 10 working days from date of the payment of the outstanding amount by the taxpayer. Also, the likelihood of demand in the next six months should be ruled out.
- Permission in a case of disputed demand could be given within 10 working days by the AO from the date of indemnification of the demand
- In case of likelihood of the demand in the next six months the AO should inspect other assets of the taxpayer and explore action on them under section 281, and then permission can be granted within 15 working days.
This circular is easy going for those who are prompt if tax payment and filling of income tax return. With the online filing of ITR gaining popularity more and more citizens find it easy and effective to pay taxes and file the income tax return online. The online platform is convenient for all kind of tax including value added tax. The income tax online return is also easy in obtaining online income tax refund.
Off the track observations
An extension to the above guidelines is that the application should be scrapped off within a period of 10 working days in case of the outstanding demand or dispute not being cleared.
In other cases of non-grant of permission a written reason has to be furnished by the AO within 10 working days to the taxpayer which should also provide the extension of submission range
Validity of the permission
A grant of permission is valid for a period of 180 days from the date of issue of approval order or for the date when the service mentioned on the order is executed; whichever is earlier.
This informative article is believed to indulge best practices amongst the taxpayers as the circular has been implemented with immediate effect.