Sec.143 is proposed to be amended by deleting adjustments in returns filed by assessee. The nature and scope of such adjustments was given in the section. However, the concept was not working satisfactorily. It is now provided that filing the return by itself would complete the process of assessment limiting its scope to raise demand and issue refund on the basis of return filed.

Except for issuing intimations where any sum is payable by the assessee or refund is due to him, the acknowledgement shall be deemed to be an intimation. It is also proposed to omit the provisions in respect of levy of additional income-tax at 20 per cent on prima facie adjustments madeby the income-tax officer, sec.154 of Income-tax Act is also amended to provide for rectification of intimation or deemed intimation referred to in proposed sub.sec.(1) of sec.143. This is a salutary provision.

Presently, there is no time limit for disposals of appeals filed before the Commissioner (Appeals) or the Appellate Tribunal under I-Tax Act. Sec.250 of the Income-Tax Act relating to procedure in appeal is being amended to provide that Commissioner (Appeals) "where it is possible", may hear and decide such appeal within a period of one year from the end of financial year in which such appeal is filed, under sec.246A(1).

Similarly sec.254 of the Income-tax Act is amended to provide that in every appeal the Appellate Tribunal "where it is possible" may hear and decide such appeal within a period of four years from the end of financial year in which such appeal is filed under sec.253(1) of the I-tax Act. This is a salutary provision emphasising accountability of the authorities for speedy disposal ofAppeals. However, the words "where it is possible" seems to dilute the effect of provision.

Finance Bill proposes to rationalise rate of interest payable by assessee to 18 per cent per annum is respect of late filing of return or payment of advance tax or failing to deduct tax at source or not depositing tax deducted at source within prescribed time.

Finance Bill also proposes to rationalise payment of penalty at Rs 100 per day in respect of defaults of miscellenous and continuous nature such as failure to sign statements, furnish information, returns or statements and allow inspection. For the first time the Income-Tax Act has given powers to Income Tax Tribunal to award costs in suitable cases.

It is proposed to provide that the Chief Commissioner or the Commissioner shall file the appeal before High Court within 120 days from the date of receipt of the order of the Appellate Tribunal. Accordingly Sub.sec.(2) of the Appellate Tribunal is proposed to be amended.

The Income-Tax Act provided for scaleof fees for filing appeals before the Commissioner (Appeals) as also Appellate Tribunal. The fees payable for filing appeals were relatable to the assessed income. However, appeals are also filed on issues such as TDS defaults, non filing of returns etc which may not have any nexus with assessed income. It is proposed to amend sec.249 by inserting new sub.clause IV to provide for fee of Rs 250. Further sec.253 of I.Tax Act is amended by inserting clause (c) in sub.section 6 to provide that fee for appeal to Appellate Tribunal will be Rs 500.

Under the existing provisions of sec.197A an individual can receive the income from interest on securities without deduction of tax at source, on furnishing to the payer of such income a declaration to the affect that tax on his estimated total income will be "Nil". It is proposed to extend the above benefit to tax exempt entities like trusts, provident funds, gratuity funds, superannuation funds etc.

It is sproposed to amend sec.12A of Income-tax relating toconditions for registration of Trust or institutions. Henceforth application for registration in the presribed form and manner will be made only to the Commissioner of Income tax.

Under the existing provisions of sub.sec.(5A) of sec.206C the persons collecting tax in accordance with the provisions of sec.206(c) are required to file returns of tax collected at source. New sec.(5B) & (5C) in sec. 206(C) provide that the returns of tax collection at source may be filed on computer media such as floppies, diske Hes, magnetic cartridge tapes, CD Roms or any other computer readable media as may be specified by the Board.

It is also provided that the information in such returns shall be admitted as evidence in any other proceedings under the Act. This is very useful provisions and is pointer that tax administration is changing with times.

(The author is a Mumbai-based chartered accountant)