Wednesday 4 October 2017

CBDT: Provides modalities for challan corrections under PMGKY; Allows conversion to IDS payment

CBDT provides functionality to make corrections in the challans used for the purpose of the Pradhan Mantri Garib Kalyan Yojana Scheme, 2016 ('PMGKY'); CBDT acknowledges that despite abiding by the prescribed time limit under the Scheme and making all the payments/deposits within that period, declarants are deprived of availing benefit of PMGKY Scheme due to procedural defaults i.e. use of wrong challan for making tax payment under PMGKY or for making deposit under Pradhan Mantri Garib Kalyan Deposit, 2016 Scheme ('PMGKD') or making certain incorrect entries therein; CBDT now provides for modalities for correction of PMGKY challans, however, clarifies that correction of challans pertaining to compulsory deposits under the PMGKD does not fall within power of CBDT, lays down four types of challan errors which can be corrected, viz. 1) Change of AY to 2017-18, 2) Correction in PAN, 3) Change of Major Head to 0028 i.e. Other taxes in PMGKY challan in ITNS 287 and 4) Change of Minor Head to 112 i.e. payment under PMGKY in ITNS 287; CBDT clarifies that the correction would not apply to correction of challans in a vice-versa manner, i.e. challan for PMGKY sought to be used for the purposes of making payments towards Advance tax, Self assessment Tax & Regular-assessment Tax; Howevever, a PMGKY payment would be allowed to be converted into an IDS payment (under the Income Declaration Scheme, 2016) in which case the Major Head, Minor Head and AY may be changed; CBDT reiterates that relaxation of PMGKY challans covers only those cases where declaration in Form 1 was pending due to non-credit of PMGKY challan, “It cannot grant any relaxation to those cases where either the taxpayer wants to revise his declaration under the PMGKY or remove any error in deposit under the PMGKD in any manner, whatsoever

No comments:

HC upholds validity of provisions restricting ITC where supplies are taxed under RCM

  This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) ...