Page |1

Confidential

For Departmental use only

Central Action Plan

2021-22

Central Board of Direct Taxes

Ministry of Finance
_______________Government of India_______________
 Page |2

CONTENTS___ ___________________________________________________________________________

Page

INTRODUCTION 3

KEY RESULT AREAS

CHAPTER I BUDGET COLLECTION 4

CHAPTER II REDUCTION AND CASH COLLECTION OUT OF ARREAR DEMAND- 6

CHAPTER III LITIGATION MANAGEMENT 9

CHAPTER IV SERVICE DELIVERY AND REDRESSAL OF GRIEVANCES 15

CHAPTER V FACELESS CHARGES 18

CHAPTER VI JURISDICTIONAL CHARGES 23

CHAPTER VII INTERNATIONAL TAXATION & TRANSFER PRICING 30

CHAPTER VIII EXEMPTIONS RELATED WORK 37

CHAPTER IX TDS UNITS 42

CHAPTER X WIDENING OF TAX BASE 51

CHAPTER XI INTELLIGENCE AND CRIMINAL INVESTIGATION 53

CHAPTER XII EXCHANGE OF INFORMATION UNDER TAX TREATIES 60

CHAPTER XIII COMPUTER OPERATIONS 63

CHAPTER XIV COMMUNICATION STRATEGY 67

CHAPTER XV HUMAN RESOURCE MANAGEMENT 69

CHAPTER XVI INFRASTRUCTURE 72

CHAPTER XVII MISCELLANEOUS- ACTIONS ON GLOBAL ENTRY PROGRAMME 73

 Page |3

INTRODUCTION

The Central Action Plan 2021-22 has been framed at a time when having battled with the second
wave of pandemic, its time to navigate the path to New India@75 with belief in our efforts and
confidence in our strategy. Care has been taken in the Action Plan to align the expectations
with the prevailing scenario, while retaining the core emphasis of the Department on taxpayer
services, ease of compliance and non-adversarial tax administration. The twin focus of this
Action plan is on robust implementation of faceless assessments as well as faceless appeals
and ensuring quality service delivery to our taxpayers.

This Action Plan marks a substantial shift in the work processes of the Department. New
chapters, therefore, have been incorporated on Faceless Charges and Jurisdictional Charges
in order to give clarity and focus to their complementary roles.

Online submissions through webmail, use of web based conferencing tools to minimize face
to face interaction with taxpayers/representatives is encouraged even in jurisdictional
charges. Adaptability and flexibility are the key requirements to deliver the required output
in the present year. While several timelines have been extended due to the pandemic for ease
of compliance by the taxpayers, it is imperative that such cases must be monitored by the field
formations as well as the Systems Directorate.

In view of the prevailing situation, no targets have been fixed in the Action Plan for surveys,
interventional verifications or widening of tax base. Flexibility has been given to Pr. CCsIT to
take action as per the existing situation.

The Action Plan 2021-22 seeks to reorient the work strategies with enhanced use of technology
and reduction of interface. It is expected that the workforce of Income Tax Department will
undertake all possible efforts to assist the taxpayers by prompt issue of refunds and quick
disposal of grievances.
 Page |4

CHAPTER - I

BUDGET COLLECTION

1. DIRECT TAX COLLECTION DURING 2020-21

The major head-wise direct taxes collection during F.Y. 2020-21 is as under:
(Rs. in Crore)
Budget Revised Actual % of RE
Major Heads of Estimates Estimates Collection Achieved
Tax (F.Y.2020- (F.Y.2020-21) (F.Y.2020-21) #
21)

Corporation Tax 681000 446000 457050.27 102.48%

Taxes on Income 625000 447000 471401.81 105.46%
Securities 13000 12000 16926.99 141.06%
Transaction Tax
Total 1319000 905000 945379.07 104.46%
# Source: Pr. CCA CBDT; Provisional/Unaudited

2. TARGETS FOR F.Y. 2021-22

The details of the Budget Estimates for F.Y. 2021-22 as compared to the Actual
collections for F.Y. 2020-21 (Prov.) are as under:
Table-1
(Rs.in Crore)
Head of Tax Actual Budget % increase in BE
Collection Estimates for F.Y. 2021-22
(F.Y. 2020-21) (F.Y. 2021-22) over Actual
Collection of
F.Y. 2020-21
Corporation Tax 457050 547000 19.68%
Taxes on Income 471402 548500 16.36%
Securities 16927 12500 -26.15%
Transaction Tax
Total 945379 1108000 17.20%

3. ALLOCATION OF TARGETS
3.1 In the past, the Budget target for each cadre-controlling Pr. CCIT was fixed
keeping in view the revenue potential of the Region, which was based on the
weighted average growth rate of net collections of last three years by a Region.
However, considering that the method of allocation of BE targets based on historic
growth rate of three years would not be suitable for FY 2021-22 in view of sectoral
and regional re-alignment of economic activities due to Covid-19 pandemic and
resultant impact on tax collection, the collection trends of last Financial Year 2020-
21 are taken as the basis for a more precise estimation for the collection for the
collection trend in current Financial Year, and allocation of budget target for each
cadre-controlling Pr. CCIT has been done accordingly.
 Page |5

3.2 The targets fixed for various cadre-controlling Pr. CCIT for F.Y. 2021-22 are as per
the Table below:
Table-2

ALLOCATION OF BUDGETARY TARGET FOR F.Y. 2021-22 MAJOR HEAD- WISE

TO VARIOUS PRINCIPAL CCIT REGIONS (Rs. in crore)

S. No. Pr. CCIT Region Corporation Personal Security Total

Tax Income Transaction
Tax Tax
1 MUMBAI 199833 134530 12500 346863
2 DELHI 72295 68787 141082
3 KARNATAKA & 65804 76106 141910
GOA
4 TN & 33948 38383 72331
PUDUCHERRY
5 AP & 29894 37160 67054
TELANGANA
6 PUNE 25579 35419 60998
7 GUJARAT 25606 29880 55486
8 NWR 18579 26153 44732
9 WB & SIKKIM 25312 21478 46790
10 UP (WEST) 8914 12129 21043
11 MP & 8917 12367 21284
CHHATISGARH
12 RAJASTHAN 9793 10669 20462
13 KERALA 7053 9584 16637
14 UP (EAST) 2410 10884 13294
15 BIHAR & 3433 9238 12671
JHARKHAND
16 ODISHA 6791 5447 12238
17 NER 1336 5331 6667
18 NAGPUR 1503 4955 6458
TOTAL 547000 548500 12500 1108000

3.3 The above targets should be further allocated down to various field units under
the jurisdiction of Pr. CCIT keeping in view the past performance and revenue
potential of different charges.

3.4 Securities Transaction tax target is allocated entirely to Mumbai, as it

contributes almost entire collection under this Head.

******************
 Page |6

CHAPTER – II

REDUCTION AND CASH COLLECTION OUT OF ARREAR DEMAND

Arrear demand has been increasing over the past years. Keeping in view, the past trends of
the Arrear Demand and Cash collections, it is imperative that concerted efforts continue to be
made to reverse the trend of increasing arrear demand and to initiate the process of reducing
the figure to more manageable levels.

2. Accordingly, for the year 2021-22, the target for Reduction in Arrear Demand has been
retained at 40% of the total demand as on 01.04.2021.

2.1 In order to facilitate efficient discharge of output in this important area of work
throughout the year, the minimum percentage of the annual target for reduction in arrear
demand fixed for each Pr. CCIT region to be met in the following timeframe:

Percentage target for reduction in arrear demand Time Frame

Up to 30% 01.09.2021

Up to 60% 31.12.2021

Up to 100% 31.03.2022

2.2 Besides, minimum of 15% of brought forward entries of arrear demands to be reduced
in Corporate & International Taxation charges and minimum 25% of such entries to be reduced
in non-corporate charges.

3. Reconciliation of arrear demand on CPC portal, early disposal of appeals and passing
of appeal effect orders at an early date are critical to the achievement of the targeted reduction
in arrear demand. While targets for early disposal of appeals have been set out in Chapter III,
specific targets for reconciliation of arrear demand as well as for giving effect to appeal orders
are fixed as under:

Reconciliation of arrear • Reconciliation of arrear demand to be

completed by 31.08.2021
demand

• All pending appeal effect orders should be

issued by 31.08.2021
Passing of appeal effect order
• In all other cases, appeal effect orders
should be passed within three months from
the date of receipt of the order.
 Page |7

4. The overall target for reduction in arrear demand shall include a target of cash
collection of arrear demand, which is a distinct target and required to be achieved
independently. This target of cash collection of arrear demand may be worked out on the
basis of the following formula (Table-3) by each Pr. CCIT for their respective Regions
and should be intimated to ADG(TPS-II), Delhi by first week of September, 2021.

Table-3

FORMULA FOR TARGET OF CASH COLLECTION OUT OF ARREAR DEMAND FOR

F.Y.2021-22

S. No. Description Base Target

Amount Percentage amount
(Rs. in in terms of (Rs. in
crore) the Base crore)
Amount
1 Net Collectible Demand as on 80%
01.04.2021
2 Demand not fallen due as on 20%
01.04.2021
3 Demand stayed by Courts/ ITAT 5%

4 (a) Demand stayed by I.T. Authorities 10%

(b) Demand covered by instalments 20%

(c) Demand, the recovery of which is 20%

not being pursued on account of
assessee’s stay petition pending
consideration by the I.T.
Authorities
5 Demand difficult to recover on 5%
account of no/inadequate assets
6 Assessees not traceable 5%

7 Demand difficult to recover for any 10%

other reason
Total

4.1 The above formula includes a 5% weightage in respect of demand where assessees are
not traceable. Experience has shown that in at least a few such cases, the assessees can be
traced out with proper efforts, including searches on internet, use of ITS data and enquiries
through banks.

5. In order to provide focused attention to the handling of stay granted cases, the following
strategies shall be adopted:
 Page |8

S. No. Description Target

1 Demand stayed by • Identification of all the stay granted matters by

Courts/ITAT 16.08.2021
• Formulation of action plan by Pr. CsIT for vacation of
stay and early disposal of appeals by 16.08.2021
• Provision of necessary inputs/written submissions by
AO and Addl. CIT Range to the CIT(DRs) for
proceedings before the ITAT
• CIT(DRs) will not seek adjournments in normal course
• Pr.CIT/CIT to personally attend court proceedings in
stay matters before Hon’ble High Court
2 Demand stayed by • All the pending remand reports should be sent by
I.T. Authorities 30.09.2021
• Remand reports u/s 250(4) in stay granted matters
should be sent within 30 days

6. The minimum percentage of annual target for cash collection fixed for each Pr.CCIT
region to be met in following timeframe:

Percentage target for Cash collection Time Frame

Up to 30% 30.09.2021

Up to 60% 31.12.2021

Up to 100% 31.03.2022

7. Targets for reduction and cash collection have to be dynamic and should be reviewed
on a quarterly basis. The Pr. CCsIT will further allocate these targets in accordance with the
specified formula to the respective CCsIT/DsGIT in their region. Such allocation of targets
should be completed by the first week of September, 2021 and intimated to ADG(TPS-II), Delhi
for monitoring purposes.

8. The write off proceedings after issue of Irrecoverable Certificates (ICs) by the TROs
should be expedited in a time bound manner. The Pr. CCsIT/CCsIT concerned will ensure
monthly meetings and regular review of unrealizable demand and decisions on write off
proposals. In this regard, the relevant Instructions/OMs may be followed. Monthly report
should be submitted to the Pr. DGIT (Admin. & TPS) for monitoring purpose.

******************
 Page |9

Chapter - III

LITIGATION MANAGEMENT

The Central Board of Direct Taxes recognizes the important role of Litigation Management in
achieving its vision of being an efficient and effective tax administration and improving
voluntary tax compliance. The Board has launched the concept of Faceless Appeal for the first
time with effect from 25-09-2020. Under the overall supervision of the National Faceless Appeal
Centre (NFAC), the faceless appeal system comprising of Appeal Units spread all across the
country has completely done away with the requirement of physical presence of the appellant.
Not only that, the Faceless appeal scheme has ensured even distribution, both in terms of
number and in terms of types of cases amongst the 293 Appeal Units across the country. Other
than cases assigned to Central charges and cases within the jurisdiction of International Tax
and Transfer Pricing (referred to as Others herewith), all other appeals have been included
under the faceless scheme.

2. The seriousness of the Board with respect to litigation management is evident from a
series of policy actions taken in this regard which include substantial increase in monetary
limits for filing appeals, constitution of committee for minimizing and strengthening litigation
management (OM dated 5.6.2016), committee to study appellate orders to examine filing of
Appeals by the Department before various fora(OM dated 17.7.2014) and introduction of
Central Tax Committee and Regional Tax Committees etc. In the past few years, the
Department has taken path breaking steps on policy side to improve litigation management.
This includes a steep hike in monetary limit on filing appeals before ITAT/Courts. Direct Tax
Vivad se Vishwas Act, 2020 was passed in March, 2020 to reduce the pendency of appeals at
various appellate fora. This scheme is now complete and has substantially reduced the
pendency of appeals.

3. Appeal Statistics

TABLE-4
Details FY 2019-20 FY 2020-21
CIT(A) NFAC Non- Total
NFAC
No. of appeals pending as on 1st 334594 398324 59484 457808
April
No. of new appeals instituted 222082 56255 27671 83296
during the year
No. of appeals disposed during 98868 14683 26391 41074
the year
Closing number of appeals 457808 439896 60764 500030

PART A – TARGETS FOR CIT (APPEALS)

4. Categorization of appeals would be similar to preceding year and this is illustrated as
under:
Category Time of filing Appeal/Demand involved
of appeals

A1 Appeal filed before 1.4.2021 and demand involved above Rs 50 crore

 P a g e | 10

A2 Appeal filed before 1.4.2021 and demand involved above Rs 1 crore up to Rs 50 crore

A3 Appeal filed before 1.4.2021 and demand involved above Rs 10 lakh up to 1 crore

B1 Appeal filed before 1.4.2018 and demand involved between Rs 2 lakh to Rs 10 lakh

B2 Appeal filed between 1.4.2018 to 31.3.2021 and demand involved between Rs 2 lakh
to Rs 10 lakh

B3 All appeals filed before 31.3.2021 and demand involved is less than Rs 2 lakh

C Current appeals filed during FY 2021-22

4.1 The creation of NFAC has necessitated separate approach in target allocation
amongst the Appeal Units and the CsIT(A). Allocation of work to the Appeal Units within the
NFAC has been done taking into account even distribution of case load, both in terms of
numbers and in terms of category of appeals.

4.2 Accordingly, the targets and norms for FY 2021-22 in respect of disposal of appeals
pending with Appeal Units within the NFAC and CsIT (A) in each Pr. CCIT Region are set out
as under:

Note: For the purpose of Appeal Unit disposal implies uploading of draft order on the ITBA.

TABLE-5
Category Remarks
A A1 Above 50Cr No inter-se priority except 100% disposal
(>10 lakh) A2 Above 1 Cr to 50 Cr of A1 brought forward as on 01.04.2021.
A3 Above 10 Lakh to 1 Cr
B B1 Filed before 1.4.2018 (2- Older appeals to be taken up on priority.
(< 10 lakh) 10 lakh)
B2 Filed from 1.4.2018 to
31.3.2021(2-10 lakh)
B3 All appeals filed before
31.03.2021(demand < 2
Lakh).
C C Current Appeals Filed May be disposed of with approval of
(< 10 lakh) during FY 2021-22 CCIT(Central)/CCIT(IT) by the CsIT(A)
handling Central and IT & TP charges. No
approval is required for Appeal Units
within the NFAC. However, it is expected
that priority shall be given to the other
categories of appeals.

A. Each Pr. CCIT Region shall ensure:

(a) Disposal of 100% of appeals pending as on 01.04.2021 that involve demand of Rs.50 crore
and above (category A1).
(b) Disposal of 90% of all appeals filed prior to 31.03.2016 (excluding appeals stayed by
judicial authorities).
(c) All appeals filed U/s 143(1) and 154 of the Income-tax Act,1961 (hereafter referred to as
‘Act’) and pending as on 01.04.2021 shall be taken up on priority for disposal.
(d) In respect of disposal of other appeals, older appeals may be taken up first to the extent
possible. But important appeals in A2, A3 and B categories should also be taken up for disposal
on priority basis.
 P a g e | 11

(e) Cases set aside and restored to the Appeal Units/CIT (A) by Courts/ITAT are to be disposed
of on priority.
(f) All appeals for which Form 5 under the Vivad Se Vishwas Scheme has been issued to be
disposed of within 1 week of issue of Form 5.
(g) Targets specific to Appeal Units (AU): There is a lot of interdependence among Appeal
Units in disposal of cases. This mainly concerns, making available the records, not yet
uploaded on the System, by another CIT(AU) being custodian of records in respect of old
diverted charges. The ITBA has deployed a functionality of seek information as well as issue
letter functionality by which a document/information can be requested from another CIT(AU)
without unmasking his identity. This is mainly crucial for old appeals. In order to remove
obstacles to disposal of appeals due to non-availability of records, following key result areas
are proposed:
(i) All pending seek info request on ITBA module received by the erstwhile CsIT(A) is to be
disposed of by 31.08.2021 and any subsequent request received is to be disposed of within 15
days of receipt of request.
(ii) All pending Appeal records in respect of the Appeals allocated under the Faceless Appeal
Scheme is to be uploaded by the CIT(AU) being the custodian of respective old diverted
charges by 31-08-2021.
(iii) All orders passed outside the System should be uploaded by 30-09-2021 by the CIT(AU)
being custodian of records of old diverted charges.
(iv) The faceless appeal system has introduced the concept of risk analysis and review of
orders selected for Review after Risk Analysis. Each such order reallocated to a CIT(AU) for
the purposes of review is to be disposed of within 30 days of receipt of such orders.

B. Each individual CIT (A) & each officer in charge of Appeal Unit shall be expected to dispose
of a minimum of 350 appeals (excluding VSVS orders) for the financial year.
C. In order to ensure the seamless operation of the review mechanism under the faceless
scheme, for each case falling under review, disposal shall be counted as under:
(a) 1 disposal for AU uploading the Draft order
(b) ½ disposal for AU reviewing/finalizing the said order
D. The search & seizure appeals belonging to same group shall be grouped together for
disposal even if some of the appeals do not fall within the priority category for the Central
charges.
4.3 For the purpose of evaluation of performance of an individual officer holding additional
appellate charge(s) during the year/part-year, the aggregate disposal including in the
additional charge(s) held, shall be considered.

5. ACTION ON PART OF Pr.CCsIT /CCsIT

(i) To ensure a rational distribution of workload, especially of A and B category appeals
amongst CsIT(A) in charge of IT & TP cases, CCIT (IT) shall carry out intra-city reallocation of
workload, which may be reviewed at the end of every quarter. The re-distribution and re-
allocation of the workload shall be done in such a way that as far as possible, all such CsIT(A)
in the respective Region have sufficient number of appeals for disposal. Care may also be
 P a g e | 12

taken to assign all the pending appeals, except those involving TP adjustments, of an assessee
to one CIT(A) only. The exercise should be completed by 31st August, 2021.
(ii) The faceless appeal system is expected to evolve continuously to provide a seam less
interface to the Appeal Units and to facilitate their work. Pr. CCIT(NFAC), shall in consultation
with the CCsIT (RFAC) identify areas of improvement in the ITBA system and bring it to the
notice of the Board for consideration. The Pr. CCIT(NFAC) shall, in consultation with CCsIT
(RFAC) identify best practices/Business process followed by individual Appeal Unit and bring
it to the notice of all other Appeal Units for replication/consideration. This shall be a continuous
and ongoing process.
(iii) With the launch of Faceless Appeal and jurisdiction less appeal system, new challenges
are expected to arise in the day to day working of Appeal Units. Some of these could relate to
representation before higher appellate authorities, requisition of assessment records from the
AO, giving an opportunity of video hearing to the appellant etc. The Pr.CCIT(NFAC) in
consultation of CCIT(RFAC) shall devise and issue SOPs with respect to common issues faced
by the Appeal Units.
(iv) Pr. CCsIT/CCsIT should take necessary steps to ensure that necessary resources and
infrastructure, including secretarial support, are provided to CsIT(A)/Appeal Units so as to
enable them to discharge their duties efficiently and meet Action Plan Targets. A suitable
mechanism should also be devised to ensure that remand reports are sent to the CsIT
(A)/Appeal Units in time.
PART B: ROLE OF THE JURISDICTIONAL AO (JAO)/AO BEFORE APPEAL UNITS/CsIT(A)
6. Proper representation before CsIT(A)/Appeal Units is essential for quick disposal of appeals
as well as for improving the quality of appellate orders. The Board has also issued guidelines
for representation of cases before CsIT(A) vide F No. 279/Misc/M-124/2018-ITJ dated
14th February, 2019 in this regard. It is reiterated that timely submission of remand reports and
proper representation before CsIT(A) in appropriate cases is ensured as the same is of utmost
importance.
6.1. The Jurisdictional Assessing Officers (referred to as JAOs herewith) shall submit all remand
reports pending as on 31.07.2021 latest by 30.09.2021 and thereafter, as far as possible, the
AOs shall submit remand report within 30 days from date of receipt of the letter calling for
remand report by CsIT(A)/Appeal Units. The Range heads shall closely monitor this work and
in case of delay they shall inform the CsIT(A)/Appeal Unit in writing about the reasons for
delay.
6.2. JAO shall respond to ITNS 51 sent by the CsIT(A)/Appeal Unit within 15 days. Special care
is to be taken for those cases that would require special attention of the CsIT(A)/Appeal Unit
such as delayed appeal/taxes on returned income not paid etc.

PART C: LITIGATION MANAGEMENT OF APPEALS WITH ITAT/COURTS

7.1 Legal Information Management & Briefing System (LIMBS) has been adopted by
Government as the comprehensive database of all litigations before Courts by all Ministries.
Pr.CsIT/CsIT have been provided the user-ids and have been given the responsibility to enter
details of all cases which are pending before the Courts pertaining to their charges. Further,
appeals filed subsequently are required to be entered in LIMBS within a month of filing of the
appeal. Pr.CsIT/CsIT are requested to timely get it updated, as directed above.
 P a g e | 13

7.2 Scrutiny Reports on ITBA: The Central Scrutiny Report (CSR) module available on ITBA is
yet to be optimally utilized by the field formation. It is desirable that from the current Financial
Year, all Central Scrutiny Reports are duly reported on ITBA. The Pr.CsIT are to ensure that
CSRs are prepared by the AOs and submitted on ITBA.
8. There are a large number of cases where appeals for various assessment years, involving
similar issues, are pending for several years at different levels in the ITAT/High
Court/Supreme Court. This back-log of litigation not only blocks collectible revenues, but also
generates further litigation due to similar issues arising in subsequent assessments. Thus, even
though there is a reduction in the number of appeals being filed by the Department, the
number of disputes pending in Courts/ITAT has been increasing over the years. The
procedure for handling such litigation in a concerted and focused manner is required to be
followed. Appeals with similar issues in the High Court should be bunched together by the
office of CIT(Judicial) or any other Pr.CIT/CIT nominated by the Pr.CCIT and the Departmental
Counsel may be asked to request the Courts to hear them together, if possible.
8.1 For proper litigation management, a master list of appeals pending at ITAT, HC, SC that
was prepared at the level of each Pr. CCIT. is required to be updated every quarter and
updated list is to be forwarded to Pr. DGIT(L&R) by 15th day from the end of the quarter in the
format specified in Table 6.

PERFORMANCE OF CIT(DRs)/Addll. CIT(DRs)

9.1 The Committee constituted on 5.9.2016 by the Board to chart out a comprehensive roadmap
to minimize Litigation and Strengthen Litigation Management suggested a proactive role for
CIT(DRs) and posting of sufficient number of officers on rotational duty at ITAT. These
directions should be duly followed.
9.2 The CIT(DR)(Admn.) shall ensure that critical and high demand Central Circle cases are
not argued by CsIT posted on rotational basis. It shall also be his responsibility to ensure
liaison with concerned Pr.CsIT in important cases. On receipt of orders of CIT(A) in such cases,
the Pr.CIT, in co-ordination with DGIT/CCIT(Central) should decide if the case is fit enough for
engaging a special counsel at the time of filing of such appeal itself. Necessary procedural
formalities should be completed well in advance to engage a Special Counsel for the case. The
Pr.CIT should ensure regular communication with CIT(DR) with respect to such appeals.
9.3 The CIT(DRs) are required to peruse the orders passed by ITAT and prepare a summary of
significant orders for circulation in the field. Such orders should include cases of good
investigation by the AO as well as deficiencies noted by the Bench in assessment orders.

TESTIMONIALS TO THE OFFICERS

10. In order to encourage quality work, Pr. CCIT shall issue proper testimonials to officers
appreciating their work, where the orders of such officers – CIT (DR), Sr. DR, Talent Pool
officers involved in the process are upheld by the ITAT, HC or SC, under intimation to Pr. DGIT
(L&R). Their work should also be referred to the Regional Committee for recommending
publication in ‘Let Us Share’.

******************
 P a g e | 14

Table-6
Departmental Appeal at ITAT, HC, SC
AO/JCIT/Pr.CIT/CCIT/Pr.CCIT……as on ….

S.No. Name of PAN A.Y. Appeal at Amount Date of Date of Date of Demand Amount
the No. ITAT/HC/SC in filing of receipt giving raised collected
Assessee dispute appeal of appeal
order effect

2
 P a g e | 15

CHAPTER - IV

SERVICE DELIVERY AND REDRESSAL OF GRIEVANCES

The Taxpayers’ Charter has been enshrined in Chapter-XIII, section 119A, of the Act. As part
of this charter, the Taxpayers’ Charter Cells have been created at Pr. CCIT level at each of the
18 Regions/Zones, International Taxation and Exemptions to act as the access point to
taxpayers at field level for ensuring compliance of the commitments specified in the
Taxpayers’ Charter.
2. The Service Delivery timelines set in the Taxpayers’ Charter should be strictly adhered to
by field formations. Timely Service Delivery to the Taxpayer is a special point of focus in the
current year, especially in view of the hardships faced by taxpayers due to economic
slowdown caused by the Covid-19 crisis.
3. To ameliorate the liquidity crunch the Government has announced various fiscal as well as
monetary stimulus or packages. In the period of crisis all efforts should be made by the
Department to assist the taxpayers by speedy issue of refunds and early disposal of such
grievances.
4. The following 16 key standards for delivery of service to the taxpayer by the Department
along with timelines are as below: -
TABLE-7
STANDARDS FOR SERVICE DELIVERY
Timelines (after the date
S.No. Key Services of passing/receipt of the
order or application).
1. Issue of refund along with interest u/s 143(1) of the 3 months.
Act
2. Issue of refund including interest from proceedings
1 month.
other than section 143(1) of the Act
3. Decision on rectification application 6 months.
4. Giving effect to appellate/revision order except in
cases where-
(i) any issue is set aside, or
(ii) verification of any issue by way of submission of
any document by the assessee or any other person is 3 months.
involved, or
(iii) where opportunity of being heard is to be
provided, or
(iv) Extension is granted by the Pr.CIT or CIT.
5. Acknowledgement of communications received
Not Beyond One Week.
through electronic media or by hand.
6. Decision on application seeking extension of time
1 month.
for tax payment or for grant of instalment.
7. Issue of Tax Clearance Certificate u/s 230 of the Act. Within one week.
8. Decision on application for recognition/approval to
3 months.
provident fund/superannuation fund/gratuity fund.
9. Decision on application for grant of exemption to
institutions (University, School, Hospital etc.) u/s 10
(23C) of the Act:
• Institutions having existing
3 months.
approval
• In cases where approval is
6 months.
provisional or is about to expire
 P a g e | 16

• In any other case 1 month.

10. Decision on application for approval to a fund under
3 months
section 10(23AAA) of the Act
11. Decision on application for registration of charitable
or religious trust or institution: -
• Trust or Institution having existing Within 3 months from the
registration u/s 12A or 12AA end of the month in which
the application was
received.
• Trust or institution is registered under section
12AB and the period of the said registration is
due to expire (Section 12AB is under new
process or new law effective from 01.04.2021)
• Trust or institution has been provisionally
registered under section 12AB (Section 12AB
is under new process or new law effective
Within 6 months from the
from 01.04.2021)
end of the month in which
• Registration of the trust or institution has
the application was
become inoperative due to the first proviso to
received
sub-section (7) of section 11. (Registration
u/s 12A or 12AA shall become inoperative
from the date on which the trust or institution
is approved under clause (23C) of section 10)
• Trust or institution has adopted or undertaken
modifications of the objects which do not
conform to the conditions of registration
Any other case including provisional registration Within 1 month from the
end of the month in which
the application was
received
12. Decision on application for approval of Hospitals in
3 Months
respect of medical treatment of prescribed diseases
13. Decision on application for grant of approval to
institution or fund under section 80G (5) of the Act.
• Trust or Institution having existing exemption Within 3 months from the
u/s 80G of the Act end of the month in which
the application was
received
• Trust or institution already granted
exemption u/s 80G and the period of the said
exemption is due to expire
• Registration of the trust or institution has
become inoperative due to the first proviso to
Within 6 months from the
sub-section (7) of section 11. (Registration
end of the month in which
u/s 12A or 12AA shall become inoperative
the application was
from the date on which the trust or institution
received.
is approved under clause (23C) of section 10
of the Act)
• Trust or institution has adopted or undertaken
modifications of the objects which do not
conform to the conditions of registration
• Any other case including provisional grant of Within 1 month from the
exemption end of the month in which
the application was
received
 P a g e | 17

14. Decision on application for no deduction of tax or 1 month

deduction of tax at lower rate

15. Redressal of grievance -

(i) Grievance received from PMO/FMO/MPs/CBDT/
15 days
any other higher priority source
(ii) Grievance received through CPGRAMs online Within 30 days of receipt
portal by CBDT
(iii) any other grievance 2 months
16. Decision on application for transfer of case from one
2 months
charge to another

5. Considering the importance of this aspect of work, the Pr. CCIT concerned has to be
responsible and accountable for monitoring. The Pr. CCIT shall make a quarterly report in
respect of 16 standards for service delivery by 15th day from the end of the quarter and
monthly report by 10th of every month for the preceding month with regard to resolution of
grievances and send it to the Zonal Member with a copy to Pr. DGIT (Admn. & TPS). In the cases
where pendency goes beyond 60 days, the reasons for delay must be mentioned in the said
monthly report along with an explanation of the officer/official concerned.

******************
 P a g e | 18

CHAPTER - V

FACELESS CHARGES

Faceless Assessments and Faceless Penalty

Faceless Assessment Scheme has been launched to eliminate the interface between the
Assessing Officer and the assessee to the extent technologically feasible and to optimize
utilization of resources, specialization, data driven assessment and to introduce a team-based
assessment mechanism with dynamic jurisdiction. Accordingly, the National Faceless
Assessment Centre (NaFAC)and Regional Faceless Assessment Centre (ReFAC) have been
established. The ReFAC consists of Assessment Units, Verification Units, Technical Units and
Review Units each having distinct functions and responsibilities.

Faceless Penalty Scheme mandates setting up of National Faceless Penalty Centre/Regional

Faceless Penalty Centers to conduct Faceless Penalty Proceedings and impose penalty in
cases falling into its scope in a centralised manner similar to those of Faceless Assessment.
Units of ReFAC have been entrusted to decide the penalties referred to them.
In the above background, Units of ReFACs must focus on:
i) Ensuring quality assessments and penalties in fair and judicious manner and
reporting the same to the Jurisdictional AOs for necessary action at their end.
ii) Complying with all procedures, guidelines and SOPs issued from time to time and
creating an efficient eco-system for faceless assessments and penalties.
iii) Complying with all timelines and targets as laid out from time to time for faceless
assessments and penalties.
iv) Making effective use of available information and of technological resources.
v) Developing expertise in the assigned domain and creating institutional database.

In order to achieve the above, the targets for Units of ReFACs are set as under:

TABLE-8
TARGETS FOR ASSESSMENT UNITS 2021-22
S. No Key Result Target/Activity Time frame(by)
Area

A Assessment and Penalty Work (Assessment Unit and Penalty Unit)

Scrutiny (a) Issue of notice u/s 142(1) Within 1 month of case selection
Assessments along with specific in all cases in which such notice is
questionnaire to be sent.

(b) Reference to VU wherein Within 15 days of response of

decision requiring such assessee
reference is made
 P a g e | 19

(c) Reference to TU wherein Within 15 days of response of

decision requiring such assessee or 15 days from the date
reference is made of notice u/s 142(1) if no such
response from assessee is
received.

(d) Reply to clarification Within 5 working days of receipt

sought by VU or TU of such request seeking
clarification.

(e) Reply to clarification Within 10 working days of receipt

sought by RU of such request seeking
clarification.

(f) Submission of Draft Within 15 days of final response

Assessment Order to received from assessee and 30
NaFAC days prior to the date of limitation
of passing of order.

(g) Issue SCN with DAO Within 5 working days of the case
wherein modification is being received from RMS/RU.
proposed in returned
income or sum payable

(h) Final assessment order to Within 5 working days of receipt

be passed of response to the SCN from the
assessee.

Penalty (a)Issue of hearing notice Within 1 month of receipt of case

Disposal in all cases in which such notice is
required to be sent.

(b) Submission of Draft Within 15 days of final response

Penalty Order to NaFAC received from assessee.

(c ) Final order to be passed Within 5 working days after

receipt of case from RMS/RU.

S. No Key Result Target/Activity Time frame(by)

Area

B Assessment and Penalty Work (Verification Unit)

Scrutiny (a) Executing verification Within 30 days of the date of
assessments requests requiring field request received.
and Penalty or physical enquiry
Disposal
 P a g e | 20

(b) Executing verification Within 15 days of the date of

requests other than at (a) request received.
above

S. No Key Result Target/Activity Time frame(by)

Area

C Assessment and Penalty Work (Review Unit)

Scrutiny (a) Submission of Review Within 15 days of the date of
assessments report in cases where request received.
and Penalty the Review Unit
Disposal
suggests modification
to the Draft
Assessment/ Penalty
order

(b) Submission of Review Within 5 working days of the date of

report in cases other request received.
than at (a) above

S. No Key Result Target/Activity Time frame(by)

Area

D Assessment and Penalty Work (Technical Unit)

Scrutiny (a) Submission of report in Within 30 days of the date of
assessment cases where the request received.
and Penalties Technical Unit
requires inputs/report
of outside agency to
provide technical
assistance.

(b) Submission of report in Within 5 working days of the date of

cases other than at (a) request received.
above
 P a g e | 21

OTHER ISSUES FOR ACTION:

Scrutiny assessment
1. NaFAC to oversee automated allocation of cases and shall ensure similar workload of
different class of cases to different Assessment and Penalty Units.

2. NaFAC shall, in consultation with Systems Directorate, frame the Risk Assessment
criteria for each Assessment and Penalty cycle.

3. NaFAC shall ensure timely laying of SOPs (Formats, Modes, Processes & Procedures)
for completion of different processes of Assessment and Penalty Units.

4. It must also be ensured that normally all scrutiny assessments are completed 15 days
before the limitation date. It should be further ensured that:
a. For the date of limitation of cycle of assessment being 30.09.2021, it should be
ensured that 70% of the total cases are completed by 31.08.2021 and 100% of
the total cases by 15.09.2021.
b. For the date of limitation of the next cycle of assessment being 31.03.2022, cases
should be completed in the following manner: - 30% by 30.11.2021, 70% by
31.01.2022 and 100% by 15.03.2022.
5. It must be ensured that normally all penalty cases are completed 15 days before the
limitation date. It should be further ensured that:
a. For the date of limitation being 30.09.2021, it should be ensured that 70% of the
total cases are completed by 31.08.2021 and 100% of the total cases by
15.09.2021.
b. For the date of limitation being 31.03.2022, penalty cases should be completed
in the following manner: 30% by 30.11.2021, 70% by 31.01.2022 and 100% by
15.03.2022.

6. Wherever, references have to be made under section 92CA and other sections of the
Act, the exercise to be undertaken within 15 days of case being flagged in FAO’s work
item.
7. Each Range Head shall identify appropriate number of important and potential cases
for quality assessment and give specific focus to these cases and guide Faceless
Assessing Officers (referred to as FAOs herewith) to carry out appropriate investigation
and frame quality assessments.

8. Each AO shall pass at least 10 quality assessment orders during the year. Such cases
shall be marked by AO in ITBA as Quality Orders.

9. FAS is team-based assessment scheme and all actions are required to be approved by
the Range Head. Therefore, the Range Head should complete action in cases submitted
by the FAO on regular basis without delay and in any case within five working days
from the date of receipt of case for action.
 P a g e | 22

10. In penalty cases where requisite supporting documents and orders are not available in
ITBA system, FAO shall write to JAO within 15 days of receipt of penalty case by FAO.

11. In cases where the FAO requests the JAO to upload certain documents, the JAO should
upload the required documents within five working days.

Knowledge Management & Capacity Building

(1) Each CCIT(ReFAC) should organize at least four in-house workshops/ seminars in a year
and the presentation be uploaded in the Knowledge Management Portal of NaFAC/ReFAC.
Officers shall make presentations on important issues and discuss relevant case laws.

(2) The Units should ensure that assessment orders passed in all cases should be (i) speaking
orders, (ii) error-free from audit’s point of view, (iii) compliant with the principles of natural
justice (Audi Alteram Partem), (iv) having appropriate detailing and marshaling of facts and
relevant legal provisions wherever additions/disallowances are being made, and (v) avoiding
frivolous additions or disallowances leading to high pitched assessment. Similarly, Penalties
should be decided in judicious and fair manner.

(3) The powers of review and inspection by the superior authorities should be utilized in an
effective and timely manner as an instrument of ensuring quality assessments. This function
should not be left to the fag-end of the financial year.

(4) Pr.CsIT (ReFAC) shall also send suggestions to DTRTI for training regarding their specific
needs so that the DTRTIs can incorporate such needs in their programmes.

(5) Pr.CsIT(ReFAC) shall continuously monitor, supervise and sensitize the Units under them
to ensure that the assessment and penalty orders passed are in accordance with the procedure
prescribed in Section 144B of the Act or the Faceless Penalties Scheme-2021.

******************
 P a g e | 23

CHAPTER - VI

JURISDICTIONAL CHARGES

CBDT vide guidelines (F. No.173/165/2020-ITA-I) dated 14th August, 2020 has mandated that
field formations outside the NaFAC/ReFAC hierarchy will perform the following functions in
faceless manner to the extent possible:

• Taxpayer outreach and taxpayer education.

• Taxpayer Facilitation
• Rectification Proceedings
• Grievance Handling
• Demand Management
• Collection and Recovery of taxes
• Audit Functions including matters pertaining to Revenue and Internal Audit and taking
remedial actions
• Judicial Functions including giving effect to the Appellate Orders of CsIT (A), ITAT, High
Court, Supreme Court, Settlement Commission, preparing scrutiny reports and filing
appeal wherever considered necessary, defending writ petitions, recommending SLPs
etc.
• Statutory Powers under section 263 and section 264 of the Act
• Prosecution and Compounding proceedings and related Court matters.
• Administrative HRD and Cadre Control matters including related Court matters.
• Custody and management of case Records
• Management and Control of Infrastructure.

The role of Jurisdictional Assessing Officers (JAOs) is of crucial importance in ensuring the
successful implementation of the changed business processes in the Department.

Specifically, the JAOs are required to undertake the following:

1. JAOs to undertake all pre-assessment actions relating to the service of notice under section
148/148A of the Act, disposal of objections if any and issue of notice under section
142(1)/143(2) of the Act in the 148 cases before the assignment of case to NaFAC.
2. Uploading of all base and related documents including documents/orders like Valuation
Report, Special Audit Report, Transfer Pricing Orders, DRPs orders, any information relevant
to the case received manually etc. of all assessments (including set aside cases to be done de
novo)/penalties assigned to NaFAC.
3. Uploading of all survey reports, scanned copy of photocopies/extracts of documents
obtained during the survey but not impounded.
4. Uploading of all documents/information/remarks that are relevant for completion of
proceedings under section 143(3)/147 of the Act.
5. JAOs to complete the confirmatory check list as provided on the ITBA work item, before
assignment of the case to NaFAC.
6. JAOs to process non-PAN cases and cases where PAN is not registered on the e-filing account
as per CBDT’s Instruction dated 8th December, 2020 and 19th March, 2021 in F. No. 187/4/2020-
ITA-I
 P a g e | 24

7. JAOs to undertake immediate compliance, within five working days, to any query from
NaFAC seeking information / document/clarification during Faceless assessment/penalty
proceedings.
8. JAOs to pass orders in all partly set aside cases pending as on 01.04.2021 within the time
allowed under the relevant provisions of the Act.
9. JAOs to pass consequential orders and reduce demand or issue refunds, latest by 31.07.2021
in all VsV cases wherein Form 5 has been issued upto 30.06.2021. For all subsequent issue of
Form 5, i.e. 01.07.2021 onwards JAOs may give necessary effect within 30 days.
10. Uploading of paper returns and processing of e-returns by AO
(a) Uploading of paper returns:- 100% of manual returns pending for processing and filed
between 01.04.2021 and 30.06.2021 to be uploaded by 16.08.2021.
(b) Processing of e-returns:- 100% of e-returns pushed to AO’s portal by CPC and pending to
be processed by 16.08.2021.
11. Building Knowledge Capacity and Enhancing Performance
(a) Financial Statements of the last published annual report along with notes on account of
top 100 listed Corporate cases to be studied/analysed, based on which each Pr. CCIT
to send a report to the Board (Member, IT &R) by 30.11.2021. The template of such a
report to be communicated separately by the Board.
(b) Each CCIT should recognize quality work done by his officers, in diverse areas such as
collection, assessment, prosecution, outreach etc. Appreciation certificates and
recommendation for regional/national level departmental award, Let Us Share etc.
should be made preferably though a committee to oversee these issues.
(c) Each Pr.CIT should organize at least one in-house workshop per quarter. Officers shall
present important issues and relevant case laws for discussion. They will also present
their suggestions for enhancing tax collection in their area.
(d) Pr. CsIT shall also send suggestions/request to DTRTI regarding their specific training
needs.
12. Recovery
(a) A large number of companies have been struck off from the records of the ROC; in some
case petitions for restoration of registration are required to be filed before the NCLT so
as to be able to pursue recovery of demands raised in their cases. AOs must identify all
such cases at the earliest and ensure filing of petitions by 31.10.2021.
(b) Each TRO should complete at least 1 auction in suitable cases in respect of the Pr. CIT
Charge and effect recovery during the financial year itself.
(c) Recovery surveys may be conducted in terms of the guidelines issued by CBDT vide
Order F No. 275/29/2020-IT(B) dated 16.10.2020 as corrected by Corrigendum dated
19.10.2020.
 P a g e | 25

(d) In cases where assets or bank balances lie abroad and where India’s tax treaties
(DTAA/TIEA/MAC) provide for assistance in collection of taxes. Requests may be made
to foreign tax authorities through FT& TR Division to collect the ‘revenue claim’ or take
conservancy measures in accordance with the provisions of the relevant treaty. The
procedure in this regard along with other relevant details may be extracted from the
updated Manual on Exchange of Information that was released by the Board in 2015.

(e) The Pr.CsIT shall be responsible for the accomplishment of the above targets and action
items by TROs and the results achieved by TROs shall be considered in evaluating the
performance of Pr.CsIT.

13. Adjustment of demand against amount available in PD accounts

(a) There are large numbers of entries in the PD accounts of Pr.CsIT and Pr.DsIT which are not
PAN populated. They are also number of entries which needs to be adjusted against tax
arrears. The same needs to be given due attention with following targets:

(b) Review of all entries in PD accounts and PAN population of the entries by 31st August, 2021.

(c) Adjustment of amounts in PD accounts against tax arrears by 31st December, 2021

Targets for JAOs are accordingly set out as under:

TABLE-9

TARGETS FOR JURISDICTIONAL CHARGES 2021-22

S. No Key Result Area Target/Activity Time frame(by)

A. Budget Collection
100% Collection of Budget 31.03.2022
Targets fixed (Region-wise
targets are as per Chapter I)
B1. Recovery/Reduction of Demand
1 100 % of the target fixed for cash Up to 30% of target by
Cash Collection collection of arrear demand 30.09.2021
(Region-wise targets are as per Up to 60% of target by
Chapter II) 31.12.2021
Up to 100% of target by
31.03.2022
2 20% of the current demand 31.03.2022
raised during the year
(excluding pre-paid taxes and
demand not fallen due)
3 Reduction of Arrear 40% reduction in arrear demand Up to 30% of target by
Demand as on 01.04.2021 30.09.2021
Up to 60% of target by
31.12.2021
Up to 100% of target by
31.03.2022
Reduction of Brought Forward (a) Minimum 15 % for
Arrear Demand Entries Corporate &
International Taxation
Charges
(b) Minimum 25 % for
Non Corporate Charges
 P a g e | 26

4 NCLT matters Identification, processing and 31.10.2021

filing of petitions before NCLT in
all cases requiring restoration of
companies in the records of the
ROC
5 TRO’s Action Plan Disposal of 20% of brought 31.03.2022
forward TRCs or 150 TRCs by
each TRO whichever is less
6 Cash collection of 5% of brought 31.03.2022
forward demand indicated in the
TRCs
7 Auction of properties including 1 [on or before
recovery 31.03.2022]
8 Write-off Identification of fresh cases for 31.12.2021
write-off
9 Submission of proposals for write 31.12.2021
off to the Board or Committees in
the cases identified as above and
action as stated in Chapter-II.
B2. Arrear Demand Reporting
1 Preparation of Dossier cases with From Quarter ending
Reconciling Dossier
demand exceeding Rs. 3 Cr. 30.09.2021
Data with CPC-
based on data available in CPC
Financial
FAS
Accounting System
2 Preparation of Dossier cases with From Quarter ending
(CPC-FAS)
demand exceeding Rs. 30 Lac 30.09.2021
but less than Rs. 3 Cr. based on
data available in CPC FAS
B3. Demand Verification and Cleanup
1 Checking of all demand PAN-wise and year-wise from 31.08.2021
Systems, AST/TMS or Manual demand wherever
remaining and removal of all duplicate entries.
2 Verification and certification in CPC Financial 31.08.2021
Accounting System (FAS) in cases where notice u/s 245
was issued by CPC up to March 31, 2021
3 Demand cleaning by disposal of applications u/s 154 31.08.2021
filed by the assessees and giving appeal effects in all
eligible cases as on 01.04.2021

C. ASSESSMENT RELATED
1. Completion of All Pending Partly Set Aside Within the period of limitation as per the
Orders Pending as on 01.04.2021 relevant provisions of the Act
2. Compliance to any query from NaFAC
seeking information, document, or any
Within Five working days
clarification during Faceless assessment
/penalty proceedings.
D. LITIGATION MANAGEMENT
1 Remand Reports (a) All pending Remand Reports as on
31.07.2021 to be disposed by 30.09.2021
(b) Thereafter, all remand reports to be
 P a g e | 27

submitted within 30 days of the receipt of the

requisition
(c) Remand Reports under section 250(4) in
stay granted maters to be submitted within 30
days
2. ITNS 51 JAO to respond to ITNS 51 sent by the
CIT(A)/Appeal Unit within 15 days.
3. Consequential Effect to issue of Form 5 (a) In all VsV cases wherein Form 5 has been
under the VsV Scheme issued on or before 30.06.2021 consequential
effect may be completed latest by 16.08.2021
(b) In cases wherein Form 5 has been issued
from 01.07.2021 onwards, necessary
consequential effect may be given within 30
days from the date of issue of Form 5
4. Giving Effect to All Pending Appellate
/Revision Orders 31.08.2021
5. Giving Effect to Appellate /Revision
Orders except in cases where:
(a) any issue is set aside; or
(b) Verification of any issue by way of
submission of any document by the
assessee or any other person is involved; 3 Months
or
(c) where opportunity of being heard is to
be provided; or
(d) Extension is granted by Pr.CIT/CIT
6. Issue of refund including interest from
proceedings other than section 143(1) of
1 Month
the Act
7. Decision on time limit seeking extension
of time of tax payment or grant of 1 Month
instalment
8. Decision on petition seeking rectification 6 Months

9. Demand Stayed by Courts/ITAT Identification of all the stay granted matters by

16.08.2021 & further action as per Chapter II
E. REDRESSAL OF GRIEVANCES
1. Grievances received from Within 15 days of receipt
PMO/FMO/MPs/CBDT/any other high
priority source
2. Grievances received through CPGRAMS Within 30 days of receipt.
online portal
3. Any other Grievances received directly Within 60 days of receipt
by the Assessing Officer or Grievance Cell
through any other source
4. Acknowledgement of communication Not beyond one week
received through electronic media or by
hand
 P a g e | 28

F. AUDIT
1 Receipt/Revenue Brought forward pendency Replies to be sent by
Audit of Receipt/Revenue Audit 31.12.2021
Objections and Draft Paras
of C&AG/ LAR as on
01.04.2021
2 Receipt/Revenue Audit Remedial action to be initiated
(Major & Minor) Objections within 3 months and
received after 01.04.2021 completed within further
and where Receipt/ period of 6 months from
Revenue Audit objections initiation and replies sent
have been accepted accordingly as prescribed in
Instruction No.07/2017
Receipt/Revenue Audit Replies to the Objections to be
(Major & Minor) Objections sent within 2 months of receipt
received after 01-04-2021 of LAR as prescribed in
and where the Instruction No.07/2017
Receipt/Revenue Audit
objections have NOT been
accepted
3 Draft Paras of C&AG Report on Draft Paras to be
received during financial sent through Pr.CCIT to the
year CBDT – within 6 weeks of
receipt of Draft Para as
prescribed in Instruction
No.07/2017
4. Internal Audit Brought forward pendency Settlement by 31.12.2021
of Internal Audit Objections
as on 01.04.2021
5. Internal Audit Objections Replies to the Objections to be
(Major) received on or after sent within 1 month of receipt
01-04-2021 and where the of the Audit Objection as
Audit objections have been prescribed in Instruction
accepted. No.6/2017. Further, remedial
action to be initiated within 3
months of receipt of the
objection and concluded
within 6 months of initiation of
the proceedings as per the
Act.
6. Internal Audit Objections Replies to the Objections to be
(Major) received on or after sent within 1 month of receipt
01-04-2021 and where the of the Audit Objection as
Audit objections have NOT prescribed in Instruction
been accepted. No.06/2017
7. Internal Audit Objections Replies to the Objections to be
(Minor) received on or sent within 1 month of receipt
after 01-04-2021 where the of the Audit Objection as
Audit objections have been prescribed in Instruction
accepted No.6/2017. Further, remedial
 P a g e | 29

action to be initiated within 3

months of receipt of the
objection and concluded
within 6 months of initiation of
the proceedings as per the
Act.
8. Internal Audit Objections Replies to the Objections to be
(Minor) received on or sent within 1 month of receipt
after 01-04-2021 where the of the Audit Objection as
Audit objections have NOT prescribed in Instruction
been accepted No.06/2017
G. Prosecution and Compounding
1 Cases already
identified by
Completion of processing
31.03.2021 for
and filing of prosecution
prosecution under 31.12.2021
complaint in appropriate
sections 276C,
cases
276CC or any other
section
2 Cases identified Identification of fresh cases Within 15 days of the end of
during the year by AO in each quarter and each quarter (cases
submission to Range head identified in first two
quarters to be submitted by
15.10.2021)
3 Processing of proposals and By end of quarter
passing of sanction orders by immediately succeeding
Pr.CIT/CIT in appropriate quarter in which proposal is
cases received
4 Filing of prosecution Within 30 days of sanction
complaints, complete in all accorded by Pr.CIT/CIT
respects
5 Compounding Disposal of all compounding
applications pending as on 31.12.2021
01.04.2021
H. CENTRALISATION
1 Sending Proposals for Centralisation in all pending cases 31.08.2021
2. Sending proposals for Centralisation in all cases received Within one month of receipt
from Investigation Wing from Investigation Wing

******************
 P a g e | 30

CHAPTER - VII

INTERNATIONAL TAXATION & TRANSFER PRICING

The International Taxation and Transfer pricing landscape has undergone a sea change. The
traditional way of doing business has seen rapid and massive transformations especially in
view of the ushering in of digital economy. Nexus based on physical presence for taxation of
business income, which has been the foundation of tax treaties, is no longer relevant with the
digitalisation of economy. Further, there has been growing concern all over the world about
tax planning by multinational enterprises that makes use of gaps in the interaction of different
tax systems to artificially reduce taxable income or shift profits to low-tax jurisdictions in which
little or no economic activity is performed. In response to this concern, and at the request of
the G20, the Organisation for Economic Co-operation and Development published 15 Action
Reports on Base Erosion and Profit Shifting in 2013. The members of Inclusive Framework on
Base Erosion and Profit Shifting, including India, came forward to adopt the recommendations
contained in BEPS Action Reports to tackle the issues relating to avoidance of payment of taxes
by non-resident tax payers by treaty shopping and circumvention of provisions of treaty, by
signing Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base
Erosion and Profit Shifting (MLI). India has signed the MLI on 7 th June 2017 and deposited the
instrument of ratification on 25th June 2019. The synthesised text of the DTAAs with 27 countries,
which have ratified MLI, is available on departmental website. The date of applicability of the
MLI provisions to a treaty is contained in the synthesised text of the relevant DTAA. So far as
taxation of income arising from digitalisation of economy is concerned, continuous efforts are
being made at international level to reach a consensus. India along with other market
jurisdictions is actively participating to ensure that MNCs pay their fair share of taxes in the
market jurisdiction i.e. source country.

Amidst the growing forces of globalisation and digitalisation of the economy, the broader goal
of the International Taxation and Transfer Pricing charges is to ensure that the assessees pay
their fair share of taxes. Besides contributing to the direct tax collection and carrying out
assessment work, the International Taxation units are also ensuring compliances of
withholding tax provisions, verification of high risk data contained in Form 15CA/15CB and
Form 15CC. Accordingly, the targets and key result areas for Financial Year 2021-22 aim at
dovetailing them towards this broader goal.

A. BUDGET COLLECTION TARGETS:

(a) Direct Tax Collection:

As allocated by the Cadre Controlling Pr. CCIT for FY 2021-22 based on the
targets mentioned in Chapter I.
(b) Reduction and Cash Collection of Arrear Demand:
As allocated by the CBDT/Cadre Controlling Pr. CCIT for FY 2021-22 based on the
targets mentioned in Chapter II.
 P a g e | 31

B. TARGETS FOR TDS UNITS IN INTERNATIONAL TAXATION:

The targets will be same as mentioned in Chapter IX.

C. ASSESSMENT:
1. It must be ensured that normally all scrutiny assessments are completed 15 days
before the limitation date.
It should be further ensured that:
a. For the date of limitation of cycle of assessment being 30.09.2021, it should be
ensured that 70% of the total cases are completed by 31.08.2021 and 100% of the total
cases by 15.09.2021.
b. For the date of limitation of the next cycle of assessment being 31.03.2022, cases
should be completed in the following manner:
• 30% by 30.11.2021,
• 70% by 31.01.2022 and
• 100% by 15.03.2022.

2. Each AO shall pass at least 10 quality assessment orders during the year. Such cases shall
be marked by AO in ITBA as Quality Orders.

All other targets for the JAOs mentioned in Chapter VI will apply to AOs in
International Taxation.

D. VERIFICATION OF HIGH-RISK REMITTANCE DATA

TABLE-10

S. No Key Result Area and Target/Activities Time Frame

A International Taxation

1. High Risk Foreign Remittance transactions

captured in Form 15CA

1.1 Finalisation of rules for selection of high risk 16.08.2021

foreign remittance data captured in Form
15CA for FY 2020-21

1.2 High risk foreign remittance data in Form 31.08.2021

15CA for FY 2020-21 and pending data for FY
2019-20 to be pushed by Systems to AOs

High Risk Foreign Remittance

2. transactions captured in Form 15CC

2.1 Finalisation of Rules for selection of high risk 16.08.2021

foreign remittance data captured in Form
15CC for FY 2019-20 & 2020-21

2.2 High risk data in Form 15CC for FY 2019-20 & 30.09.2021
FY 2020-21 to be pushed by Systems to AOs
 P a g e | 32

3. High Risk 49C data

3.1 Finalisation of Rules for selection of high risk 15.09.2021

Form 49C data for FY 2019-20 and FY 2020-21

3.2 High risk Form 49C data for FY 2019-20 and 31.10.2021
FY 2020-21 to be pushed by Systems to AOs

4. Verification of high risk data

4.1 Verification of high-risk remittance data in 30.09.2021

Form 15CA for FY 2017-18 and initiation of
action by AOs
4.2 Verification of high risk remittance data in 30.11.2021
Form 15CA for FY 2018-19 and initiation of
action by AOs

4.3 Orders u/s 201(1)/201(1A) in all appropriate 31.12.2021

cases for FY 2017-18 & FY 2018-19
4.4 Verification of at least 50% data in Form 15CC 31.03.2022 *
&Form 15CA pertaining to FY 2019-20
4.5 Verification of data in Form 49C received in 31.12.2021
FY 2019-20 &FY 2020-21
5. Verification of Annual statements of 31.01.2022
Equalization Levy for FY 2019-20
B Transfer Pricing All the time barring cases should be
completed 15 days prior to the date of
limitation.
Minimum of 20% of non-time barring
audits to be completed by 31.03.2022.

* 15CC data to be verified as per SOP to be formulated by Pr. CCIT (IT), New Delhi.

E. GENERAL ACTION POINTS

I. Selection of Parameters and formulation of SOP
S. No. Key Result Areas and Target/Activities Time Frame

1 Selection of parameters for high-risk remittance 16.08.2021

data for FY 2020-21 to be formulated (in
consultation with Systems) by the Committee set
up by Pr. CCIT (IT), New Delhi

2 Formulation of SOP for analysis of data in Form 16.08.2021

15CC by the Committee set up by Pr. CCIT (IT)
New Delhi
 P a g e | 33

ACTION ITEMS

1. Verification of high-risk remittance data in Form 15CA/CB

A large part of collections in international taxation charges comes from TDS, i.e. taxes
withheld from remittances made to non-residents. The strategy to augment revenue through
TDS requires a combination of proactive measures related to enforcement, capacity building
(external and internal) and leveraging of available information. Experience gained from the
verification of remittance data carried out in the past years has highlighted the need to apply
more focused and effective risk parameters in selecting high-risk data for verification. Equally
important is the need to process more current information and gradually progress to a state
where high-risk information is identified, processed and acted upon on a real time basis.

A set of revised risk parameters for selecting high-risk remittance data from Forms
15CA/CB was formulated in FY 18-19 by a team of officers nominated by Pr. CCIT(IT), in
consultation with the Directorate of Systems. These parameters have been improved upon
by the Committee already constituted by Pr. CCIT(IT) and applied to the data for FY 19-20
which has already been disseminated to the field formations. The balance data of high risk
remittances in Form – 15CA/CB for FY 2019-20 and data for FY 2020-21 is required to be
identified and relevant information selected would be made available to AOs by
31.08.2021.

2. Processing of information in Form 15CC

With effect from 01.04.2016, the furnishing of information in Form 15CA has been classified
into 4 parts- Part A, Part B, Part C and Part D. If the remitter/deductor certifies in part D of
the form that the remittance is not chargeable to tax under the Act, there is no requirement
of furnishing other details of the transaction specified in Form 15CA/CB. Further, rule 37BB
(3) provides a list of payments of specified nature that do not require submission of Forms
15CA and 15CB. It is therefore imperative that monitoring of such payments should be
carried out to check misuse of these relaxations provided in the Rules. This would need
processing of information contained in Form 15CC, which is a quarterly statement
required to be filed electronically by every authorized dealer and provides basic details
of all foreign remittances made through that dealer. This data has not been examined so
far. An SOP for risk-based analysis of Form 15CC data is being formulated by the
Committee set up by Pr. CCIT(IT) in consultation with Directorate of Systems. Selected
data shall be made available to the Assessing Officers who will complete verification and
take action in accordance with the SOP.
 P a g e | 34

3. Analysis of data in Form 49C (Liaison offices)

Information in Form 49C is required to be filed electronically by Non-residents having
Liaison office(s) in India. It is an annual return, to be filed in pursuance of Section 285 of
the Act and within 60 days from the end of the financial year in accordance with Rule
114DA. Form 49C is a strong tool for procuring information about the activities of Liaison
Offices, so as to verify the claim of the non-resident that its activities in India are not
taxable.

SOP for effective utilization of this information has been issued by the Pr. CCIT (IT) New
Delhi vide letter dtd.16-10-2019. The SOP has highlighted the fact that certain transactions
are required to be reviewed by the AOs carefully as such transactions may give rise to the
existence of a PE in India. As per the SOP, the CIT (Intl. Tax)-1, Mumbai shall act as Nodal
Officer to approach the RBI for obtaining LO data and Annual Activity Certificate (AAC)
data. The data obtained from the RBI is required to be matched with the Form 49C filed
online by the taxpayers electronically. Necessary action in accordance with the SOP
issued should be taken by all concerned.

4. Information received from various sources

All the information received by the Assessing Officer upto 31.03.2021 from different
sources including I&CI, Investigation Wing, AIMS etc, should be reconciled and
reconciliation statement should be submitted by the Assessing Officer to the Range Head
by 16.08.2021. Feedback and action taken report should be submitted to the Range Head
by 31.10.2021. So far as the information received from 01.04.2021 onwards is concerned,
the feedback and action taken report should be submitted by the Assessing Officer to the
Range Head within 3 months from the end of the month in which the information has been
received.

5. Equalization levy
The Equalization Levy introduced by Finance Act, 2016 requires deduction of tax at source
@6% by a person who is making payment for specified services to a non-resident. It also
provides for an annual statement to be furnished electronically by the payer in Form No.1
on or before 30th June of the financial year immediately following the relevant financial year.
The Finance Act, 2020 has introduced w.e.f. 1st April 2020 major changes in the
aforementioned provisions whereby the provisions of Equalisation Levy have also been
made applicable to the e-commerce supply or provision of services or facilitation of the
same by an e-commerce operator. The compliance with the levy on specified services is to
be made by the payer (deductor) by deducting 6% of the amount payable to the non-
resident whereas the levy @2% on e-commerce supply of goods or provision of services is
to be paid by the e-commerce operator who receives the consideration. The e-commerce
operators are required to be registered with the GSTN as they are also liable to GST.
 P a g e | 35

Vide CBDT’s notification dated 02.03.2020, Assessing Officers working in the jurisdiction
of Principal Chief Commissioner of Income Tax (International Taxation), Delhi have been
given the authority to exercise the jurisdiction over the persons required to meet the
obligation of equalization levy. As a result, the Assessing Officers in the International
Taxation charge have to ensure compliance of the provisions of Equalisation Levy
contained in Chapter VIII of Finance Act, 2016. Processing of Annual statements of
Equalization Levy for A.Y. 2019-20 filed in 2020-21 will have to be completed by
31.03.2022 by all the Assessing Officers. Further, in order to ensure that the provisions of
Equalisation Levy introduced by Finance Act, 2020 are properly being complied with by
the e-commerce operators (who are non-residents), the Directorate of Systems shall
make available by 16.08.2021 the list of e-commerce operators registered with GST to the
Principal Chief Commissioner of Income Tax (IT), New Delhi.

6. Enforcement Actions
In view of the prevailing situation of pandemic, intrusive actions such as Survey & Spot
Verifications shall be carried out only in cases involving high revenue potential cases
following the guidelines issued by the CBDT in this regard.

7. Action on defaults in immovable property transactions based on SFT

statements:

Data on sale of immovable properties over threshold limit available in SFT statements may
be obtained and matched with transactions on which TDS has been deducted u/s 195 to
generate list of defaulters, on which action can be taken by AOs. It has been observed in
several cases that the buyer of the property deducts TDS only at the rate of 1% on purchase
of immovable property from NRIs, which actually requires TDS @ 20% on capital gains. All
such cases are to be identified and taken up on a priority basis which may result in substantial
increase in TDS collection. DIT(I&CI)/Systems Directorate should provide the necessary
details by 31.10.2021 to CsIT (IT)/ (IT& TP).

8. Certificate/determination under section 197 or 195

These certificates and orders should be issued expeditiously and in any cases within one
month from the date of receipt of application. At the same time, Range Heads must ensure
that certificates for lower or Nil deduction of tax are not given without adequate verification
of the facts. Certificates u/s 197 and 195(2) of the Act are compulsorily required to be issued
on TRACES and offline applications should not be entertained. Where orders under section
195 are passed determining an amount of tax to be deducted, a copy of the order should be
endorsed to the Assessing Officer of the deductor for the purpose of section 40(a)(i) of the
Act.
 P a g e | 36

The CPC(TDS) has introduced a new feature in Form 26AS (Part G) showing various TDS
demands of the concerned PAN (including demands in respect of TANs mapped with that
PAN). Also aggregated TDS Compliance view is available to field TDS Officers on the AOs
Portal of the CPC(TDS) for the purpose. In addition, demand outstanding against PAN of the
applicant is also available on the system. These features will help the AOs in visualizing the
demands against the tax payer, and should be used for recovery as also while considering
issuance of certificates u/s 197/195 of the Act.

9. Monitoring of TDS statements

TDS statements filed by top 100 deductors (based on the deduction made by them in the
corresponding period of the previous FY) shall be monitored by each AO and instances of
lower TDS should be verified.

10. Limitation on interest deduction

Provisions for limitation on interest deduction have been incorporated in the Act by way of
Sec.94B and they are applicable from AY 2018-19 onwards. AOs (of International Taxation
as well as domestic) must go through the same and apply them wherever required.

******************
 P a g e | 37

CHAPTER - VIII

EXEMPTIONS RELATED WORK

Assessment of exempt entities:

Since the assessment functions for charitable entities is now undertaken by the Faceless
Assessment Units, the targets set for the same in chapter V shall apply for the assessment of
charitable entities as well.

2. Grant of provisional registration / provisional approval/ registration/ approval to

charitable entities:
Vide CBDT Notification No.30/2021 dated 01.04.2021, Central Board of Direct Taxes has
authorised the Director of Income-tax(Centralized Processing Centre), Bengaluru and
Commissioner of Income-Tax (Exemptions), Bengaluru for issuing Unique Registration
Number (URN) to all charitable entities and for receiving applications and passing orders
granting provisional registration or registration or provisional approval or approval in Form
10AC under sub-rule (5) of rule 2C of the Rules, sub-rule (5) of rule 11AA of the Rules or sub-
rule (5) of rule 17A of the Rules.

S.No. Scenario Limitation For Grant of URN &

Registration/Provisional Registration/
Approval/ Provisional Approval

I. Approval under Section 10(23C)

(a) Institution having existing Approvals Within 3 months from the end of the month
under section 10(23C) in which the Application is received

(b) Institutions where approval is Within 6 months from the end of the month
provisional under section 10(23C) or in which the Application is received
is about to expire

(c) In any other case Within 1 month from the end of the month in
which the Application is received

II. Registration under section 12AB

(a) Trust or Institution having existing Within 3 months from the end of the month
Registration under section 12A or in which the Application is received
12AA

(b) Trust or Institution is registered under Within 6 months from the end of the month
section 12AB and the period of the said in which the Application is received
registration is due to expire (Section
12AB is under new process or new law
effective from 01.04.2021)

(c) Trust or Institution has been Within 6 months from the end of the month
provisionally registered under section in which the Application is received
12AB (Section 12AB is under new
 P a g e | 38

process or new law effective from

01.04.2021)

(d) Registration of the Trust or Institution is Within 6 months from the end of the month
inoperative due to provisions of in which the Application is received
section 11(7) of the Act (Registration
u/s 12A or 12AA shall be inoperative
from the date on which the Trust or
Institution is approved under clause
(23C) of section 10)
Trust or Institution has adopted or
(e) Within 6 months from the end of the month
undertaken modifications of the
in which the Application is received
objects which do not conform to the
conditions of registration granted
(f) Any Other case including provisional Within 1 month from the end of the month in
registration which the Application is received

III. Approval under section 80G

(a) Trust or Institution having existing Within 3 months from the end of the month
Approval under section 80G in which the Application is received

(b) Trust or Institution is Approved under Within 6 months from the end of the month
section 12AB and the period of the said in which the Application is received
approval is due to expire

(c) Registration of the Trust or Institution is Within 6 months from the end of the month
inoperative due to provisions of in which the Application is received
section 11(7) of the Act (Registration
u/s 12A or 12AA shall be inoperative
from the date on which the Trust or
Institution is approved under clause
(23C) of section
Trust or Institution has adopted or
(d) Within 6 months from the end of the month
undertaken modifications of the
objects which do not conform to the in which the Application is received
conditions of registration granted
Any other case including provisional
(e) Within 1 month from the end of the month in
grant of Approval
which the Application is received

[Action: DIT(CPC), Bengaluru & CIT (Exemptions), Bengaluru]

3. Disposal of petitions seeking condonation of delay in filing Form 9A/Form 10/Form

10B/Form 10BB
3.1 CBDT has, under section 119 of the Act, authorised CsIT (Exemptions) to admit and dispose
of petitions seeking condonation of delay in filing Form 9A/Form 10/Form 10B/Form 10BB in
respect of the relevant Assessment Years. The time lines for the disposal are as under:
 P a g e | 39

S.No. Particulars Target Disposal Date

1 Petitions Filed on or before 31.3.2021 16.08.2021

2 Petitions Filed on or after 01.04.2021 upto 30.09.2021

30.06.2021

3 Petitions Filed on or after 01.07.2021 upto 31.12.2021

30.09.2021

4 Petitions Filed on or after 01.10.2021 upto 31.03.2022

31.12.2021

[Action: All CsIT (Exemptions)]

3.2 Consequential rectification by JAO (Exemptions):

(a) The JAOs (Exemptions) shall ensure passing of consequential orders suo moto before
the expiry of 1 month from the end of the month in which the order condoning such delay is
passed by the CIT (Exemptions).

(b) All the targets for JAOs mentioned in Chapter VI shall apply to JAOs (Exemptions).
[Action: All JAOs (Exemptions)]

4. Transfer of jurisdiction

4.1 The database of PANs not pertaining to the Exemptions jurisdiction, but lying in
Exemptions Charges shall be made available by CIT (CPC), Bengaluru to Pr.CCIT
(Exemptions), New Delhi by 31.08.2021, so that PANs in all such cases can be transferred by
the Exemptions charges to the correct jurisdiction.
4.2 Similarly, database of PANs of charitable entities claiming Exemptions vide ITR-7 but not
under the jurisdiction of CIT (Exemptions) shall be made available by CIT (CPC), Bengaluru
to Pr. CCIT (Exemptions), New Delhi by 31.08.2021 so that PANs in all such cases can be
transferred to the relevant Exemptions jurisdiction.

4.3 This exercise of transfer of jurisdiction may be completed by 30th September, 2021.
Physical records/old records are also required to be transferred immediately upon transfer of
a particular case from or to Exemptions charge, as the case may be.

[Action: DIT (CPC), Bengaluru & All CsIT

(Exemptions)]

5. Database of exempt entities

5.1 A new searchable URN database of charitable entities granted provisional registration or
registration or provisional approval or approval under various sections of the Act needs to be
uploaded on the official website of the Income Tax Department.

5.2 Database of all URNs granted upto 31.07.2021 may be updated on the website by
31.08.2021. Thereafter, regular updating of the database every month may be undertaken to
ensure that information in the public domain is current.
[Action: DIT(CPC), Bengaluru]
 P a g e | 40

TABLE - 11

The Targets for Exemptions charge and Time frame for the same is as under:

S.No Target/Activity Time Frame

1 Transfer of PAN jurisdiction to and from 30.09.2021
Exemptions
2. Updating of Charitable Entities 31.08.2020 and thereafter on monthly
Database on the Official website basis.
3. Verification of all cases approved u/s By 16.08.2021 for the pending cases as on
35(1)(ii)/(iii) with regard to the 01.04.2021, and within four months from
compliance of requirements of rules the end of the month in which return of
5D(5)/5E(4A) income is filed by the assessee in all other
cases.
4 References received in the office of the (i) All such proposals pending with
CIT(Exemptions) for withdrawal of the CIT(Exemptions) as on 01.04.2021
approval under section 10(23C) (iv), (v), may be decided by 31st December, 2021.
(vi) or (via) of the Act or for rescinding (ii) Any such new proposal or
of notification u/s10(21), reference may be decided within nine
10(22B),10(23A) (1023B) in terms of months from the end of the month of
proviso to section 143(3) of the Act by receipt of such proposal in the office of
the FAOs. CIT (Exemptions).
(iii) In respect of rescinding of
notification, the proposal shall be
forwarded by the CIT(Exemptions) to the
approving authority within one month of
the receipt thereof.
4. Disposal of proposals for cancellation of (i) All pending proposals as on
registration u/s 12A/AA by invoking 01.04.2021 may be decided by
provisions of section 12AA (3) and 12AA 31.12.2021.
(4) (ii) Subsequent proposals to be
disposed within 9 months of receipt of the
proposal in the office of CIT
(Exemptions).
5. Disposal of applications of condonation (i) All pending applications as on
of delay in filing Form No 01.04.2021, may be disposed by
9A/10/10B/10BB: 16.08.2021.
(ii) All new applications may be decided
within three months from the end of month
of receipt of such proposal as per
schedule in Para 3.1 supra.
6 Grant of URN & provisional registration As per the schedule in Para 2 supra.
or registration or provisional approval
or approval under section various
sections of the Act as per the Amended
Scheme
 P a g e | 41

7. Giving Consequential Effect to the (i) All matters relating to grant of

Condonation of delay granted by CIT consequential effect pending with JAOs
(Exemptions) as on 30.06.2021 to be completed on or
before 31.08.2021.
(ii) The consequential effect in such
matters arising on or after 01.07.2021 is to
be given by JAO within 1 month from the
end of the month in which condonation of
delay is granted by CIT(Exemptions).
8. In cases where registration (i) In a case where no appeal has been
u/s12AA/12AB has been cancelled after filed- within one month from the end of
01.06.2016, it may be ensured that in the month in which the period for filing
appropriate cases, where no appeal is appeal expires.
filed against the cancellation order or
where cancellation order is upheld by (ii) In a case where ITAT upholds the
ITAT, provisions of section 115TD are cancellation order- within one month
invoked. from the end of the month, in which the
ITAT order is received by the
CIT(Exemptions).
9. Decision on application for 3 Months
recognition/approval to provident
fund/superannuation fund/gratuity fund
10. Decision on application for grant of 3 Months
approval to hospitals in respect of
medical treatment of prescribed
diseases

******************
 P a g e | 42

CHAPTER - IX

TDS UNITS

Tax Deduction at Source has grown as a non-obtrusive but powerful instrument for preventing
tax evasion, widening the tax base and augmenting revenues over the years. The total TDS
collection during FY 2020-21 is of Rs. 3.50 lakh crore (Excluding TDS related to international
transactions). The strategy to augment revenue through TDS requires a combination of
proactive measures related to enforcement, capacity building (external and internal) and
leveraging of information that is now available with the Department through the CPC(TDS).
The action items are laid down as guidance to the field officers though they may formulate area
specific strategies as per specific local needs and priority.

2. The objectives for FY 2021-22 are, accordingly, set out as under:

TABLE- 12
TAX DEDUCTION AT SOURCE
Action to
Key Result
S.No Target/Activity be taken Time frame
Area
by
(a) Reconciliation of TDS
reported by AINs with One month after the
To ensure payments through OLTAS by CIT(TDS) end of due date of
compliance State AGs based on report filing of TDS statement
by Govt. available on TRACES portal
1 Principal
Account (b) Notices to AIN defaulters
Officers/ and cleaning up of AIN
Deductors database by getting the data
AO(TDS) 31.12.2021
of AINs who are non-
filers/have requested for
closure
(a) 5% of Manual uploaded
demand as on 01.04.2021.
(b) 20% of short payment AO(TDS) 31.03.2022
demand as on 01.04.2021
(System Generated)
(c) 50% of Late Payment
Interest Demand as on
AO(TDS) 31.03.2022
Collection and 01.04.2021 (System
reduction of Generated)
2 demand (d) 15%of Late Filing fees
(Arrear AO(TDS) 31.03.2022
demand as on 01.04.2021
Demand) To be monitored by
the supervisory
authority to ensure
(e) All eligible brought
compliance and send
forward & pending AO (TDS)
the report within the
rectifications as on CPC(TDS)
fortnight. CIT to
01.04.2021
review and submit
report on regular
basis.
 P a g e | 43

60% of current demand,

Collection and raised during the year by AO
reduction of TDS -
3 demand All the current demand AO(TDS) 31.03.2022
(Current against which assessee is not
Demand) in appeal, may be collected
fully.
(a) Organize focused sector
specific and provision
specific TDS awareness
seminars, webinars,
outreach programmes
At least 6 in a year.
including for Government Addl.
Includes use of the
Capacity deductors associations, CIT(TDS)
online platform.
Building of professional organizations ,
Stakeholders state and district
administration keeping in
view social distancing
Utilising the during Covid-19.
4
online video (b) Corporate connect for
interactive & TDS compliance by CIT(TDS)/
communicatio At least 3 in a year
CIT(TDS) for PANs mapped CPC(TDS)
n tools during to respective TDS charges.
Covid-19
Pandemic
(c ) Training and feedback
on technical aspects also
At least two trainings
about new functionalities on
CPC(TDS) per CIT charge in a
TRACES to field formations
year.
through partnership with
DTRTI/MSTU/CPC(TDS)

a) CCIT (TDS) to issue

guidance as per the
prevailing situation in a
city. All surveys/spot
verification to be
undertaken with prior
approval of CCIT
(TDS).
b) At least 20
e-enquiries per AO in
(a) Surveys u/s. 133(2A) of the year are desirable
Enforcement after due approval
5 the Act/spot verifications/ AO(TDS)
Action from the CIT (TDS)
e-enquiries
based on different MIS
reports made available
by CPC (TDS). The e-
enquiries with respect
to TDS defaults and the
order u/s 201 &
201(1A) to be
completed within 3
months from the end of
the month in which
approval is taken.
 P a g e | 44

(b) Passing of Order u/s 201

and 201(1A) in all Within 3 months from
appropriate cases including the end of the month in
AO(TDS)
Survey cases for all the which Survey took
financial years having same place
issue.
(c ) Passing of Order u/s 201
50% of cases by 31-12-
and 201(1A) in all the
21
brought forward cases as on AO (TDS)
And 100% cases by
01.04.2021 up to FY 2018-19
28.02.2022
on priority.
(a) Disposal of application
Within 30 days of
for Nil/Lower rate TDS AO(TDS)
receipt of application
certificate u/s. 197.
(b) (i) Prompt remedial
action to address TDS Within one month from
mismatch grievance the end of the month
Tax Payer AO(TDS)
6 (ii) Prompt disposal of when grievance is
Services received
application for challan
correction
Within one month from
(c ) Disposal of application
the end of the month in
for refund approval/ TAN AO(TDS)
which application is
closure
received.
Action on
observations/objections
Within the timelines
Audit raised in
7 AO(TDS) specified in Instruction
Compliance Performance/System/RAP
No. 6 and 7 of 2017.
audit and closure of IAP
Objections
(a) Identification of potential
cases for prosecution in
accordance with Scheme Under the prevailing
CPC(TDS)
approved by the Board, and circumstances no
disseminating the list to CIT separate targets are
(TDS) envisaged. However,
(b ) Identification of CCsIT (TDS)/CsIT
CIT (TDS) (TDS) may take
potential cases for
with Addl. appropriate decision
prosecution as a result of
CIT based on the exigency
survey or other information
(TDS)and of the situation
or verification or
AO(TDS)
proceedings carried out in
Prosecution & F.Y. 2020-21 & earlier years.
8
Compounding

(c) Disposal of prosecution

proposals (Filing
/Compounding).

CIT(TDS) 31.12.2021
(d) It is desirable to dispose
of all pending prosecution
proposals received up to FY
2018-19
 P a g e | 45

(e) Finalization of
Compounding Proposals 31.12.2021
pending as on 31.03.2021 CCIT/CIT
(TDS)

(f) Finalization of other Within 180 days of

compounding proposals application
Compliance of
timeline given in
(g) AOs to timely submit the
compounding
compounding reports
guidelines to be
adhered to.
(h) Issue of S. 2(35) notices
to Principal Officers and
sending proposals in Form-
T to CIT(TDS) in cases
prosecution identified and AO (TDS) Timelines for
disseminated by CPC (TDS) submitting
and identified by field AOs prosecution proposal
(during current year and / according sanction /
earlier) up to 2019-20. launching prosecution
to be adhered to as
(i) Filing of complaint in all per the extant
the cases where order u/s. guidelines.
279 is passed by the CIT
(TDS) and no compounding
application has been filed.

Settlement of TRACES 60% by 30.09.2021

TRACES AO(TDS)/
9 Tickets pending as on 90% by 30.11.2021
Tickets CPC(TDS)
01.07.2021 100% by 31.12.2021
(a) Top 500 cases in
CIT(TDS) charge of current
demand.
(b) Top 500 cases in
CIT(TDS) charge of short
payment demand.
CPC(TDS) By 15th of every month
Providing (c) Top 500 cases in
10
reports CIT(TDS) charge of late
payment interest demand.
(d) Top 500 cases in
CIT(TDS) charge of late filing
fees.
Directorate
(e) Quick MIS report
of Systems
 P a g e | 46

ACTION ITEMS

1. Demand Collection/Reduction:

a) AOs shall ensure that all the manual demand raised as a result of passing of order u/s
201/201(1A), penalty, compounding fee etc. is compulsorily updated on TRACES portal. All
manual demands that have been raised and recorded in the D&C Register should be
uploaded on TRACES portal by 30.10.2021. In case where there is a duplicate/erroneous
demand, the same should be reconciled with CPC (TDS) by 30.12.2021 and effect of the same
should be given by the afore-mentioned date.

b) It is advisable that orders u/s 201/201(1A), penalty orders etc are passed on traces AO portal
only.

c) In cases where the company is under liquidation or has been admitted to the National
Company Law Tribunal (NCLT), it should be verified and assured that claim has been
registered by the department to protect the interests of revenue.

d) There are huge demands pending in the System related to statements filed since FY 2007-08.
There are also unconsumed challans available for matching of demand especially in the case
of government departments, PSUs and government bodies. The AOs should generate the list
of defaulters from TRACES and issue letters to them. In case of challans pertaining to earlier
years which are unconsumed but have been frozen by CPC (TDS), AOs can unfreeze the
challans using the functionality available on AO portal and the relevant demand can then be
tagged with the challans.

e) A large number of instances have been noticed where the deductors are making PAN errors
in the deductee rows in the TDS statements by way of either mentioning ‘Invalid PANs’ or
‘PAN not available’ in the corresponding column. Accordingly, CsIT (TDS) may advise the
deductors to insist upon furnishing of valid PAN by the taxpayers in case of high value
transactions. Deductor-wise list of transactions is available as MIS on the AOs portal of the
CPC(TDS) – [please see ‘PAN error’ report & ‘Deductors with highest no of PAN errors’
report]. Pursuance of these cases could result in minimizing TDS mismatch cases on the one
hand while helping in identification of new assessees on the other, thus augmenting revenue.

f) The targets for collection and reduction of arrear demand have been rationalized in this
year’s plan, having regard to the Covid-19 Pandemic, lockdown in various areas, liquidity
crunch and below normal performance of certain sectors, experience gained and the fact that
some of the officers, particularly AOs (TDS), have a very large number of entries and the
process is time consuming. The rationalised targets must be met.

g) All demands raised should be entered on the AOs portal of the CPC (TDS) and efforts should
be made to collect the demands within the financial year itself.

h) In order to ensure correct and prompt reporting and collection of TDS by state governments,
the Range heads should closely interact with the State Accountant General and treasuries,
and provide necessary guidance to minimize errors and delays. Two meetings with State AG
should be organized during the year.
 P a g e | 47

i) System generated demand in respect of late payment interest and late filing fee is
collectible and should be collected to the maximum possible extent.

j) CIT-CPC shall ensure that reports required by field formation are updated and available for
download by 16.08.2021 for arrear demands that is outstanding as on 01.04.2021.

2. Capacity Building:

a) TDS workshops and awareness programs can be conducted for all categories of deductors
including government deductors, PSUs, Banking Sector, Professional organizations etc. for
giving wide publicity. The programs can be targeted for those deductors who were not
exposed to such programs earlier or those categories of deductors where there is less
compliance. In corporate connect programs for companies, banks etc., it should be ensured
that the senior functionaries attend the meetings to understand compliance requirements and
the serious consequences of TDS violations for the entity as well as the principal officers.

b) Initiatives should be taken to educate defaulters regarding filing of correction statements for
liquidating huge infructuous demands pending on TRACES since long, related to short
deductions, short payments, non-payment of interest, late filing fee etc. The demands
pending thereafter should be collected immediately.

c) Meetings, with priority to online video conferencing should also be conducted with the
Chartered Accountants, corporate lawyers, Company secretaries, accountants and TDS
Consultants regarding the preparation, submission and correction of TDS statements and
payments. Auditors should be reminded of notifying the TDS violations clearly in the audit
reports.

d) CCsIT/CsIT(TDS) to regularly exchange amongst all the regions either through

meetings or online conferences about best practices, areas of concern, areas of focus, new
findings, various question of laws framed in appeal, research on finding new areas to apply
the TDS provisions and also the success of application of new sections of TDS in their
respective regions. CPC(TDS) and CIT (TDS) should conduct regular workshops, tutorials
and troubleshooting guidance through video conferencing, conference calls and other online
facilities. TDS officers should make use of these avenues to clarify their doubts so as to be
more efficient and provide better services to deductors and taxpayers.

3. Tax payer services :

(a) Digitalization of manual grievance- All the manual grievance including those about TEP
(TDS Evasion Petitions) received after 01.04.2021 shall be digitalized for record, retrieval
and expeditious disposal . A system would be devised on the lines of E nivaran for this
purpose by CPC TDS.
(b) Certificate u/s 197 should be decided promptly. Detailed scrutiny like questionnaire
as in 143(3) proceedings or 201 proceedings should be avoided. Instructions issued by
CBDT should be followed.
 P a g e | 48

4. Enforcement Actions:

Surveys/e-Enquiry

(a) At least 20 e-enquiries for verification of TDS defaults, based on lists pushed by CPC TDS
with prior approval of CIT is desirable, to be completed in a time bound manner in order
to check TDS evasion. Hence, in FY 2021-22 twenty e-Enquiries per AO in a year are
desirable after getting due approval from the CIT(TDS).CPC (TDS) to regularly provide
useful reports/inputs to field officers that may be used for identifying e- Enquiry cases.
(b) In the case of e-enquiries, AO shall issue notice with the prior approval of Pr.CIT/CIT
based on reports made available by CPC(TDS) or information from investigation
wing/TEP/insight portal/ other organization and information received on sharing of
information. After preliminary examination of the facts; subsequently, notice u/s
201/201(1A) of the Act may be issued and action completed in 3 months, in case of TDS
defaults.
(c) CCIT (TDS) to issue guidance for survey as per the prevailing situation in a city. All
surveys/spot verification to be undertaken with prior approval of CCIT (TDS).
(d) CPC (TDS) and DsGIT (Inv.) would regularly provide useful reports/ inputs to the TDS field
officers that may be used for identifying survey cases. The following indices may be useful
for selecting a case for survey: -
(i) Cases in prosecution list (Cases where TDS/TCS not deposited after deduction);
(ii) Trend of TDS payment in stark contrast to other deductors in similar business;
(iii) Cases showing negative trend in payment (under a particular Section as compared
to preceding FY);
(iv) Tax evasion petitions (regarding non-deduction of TDS);
(v) Cases reported by the Assessing Officer with huge disallowance u/s 40(a) (ia) of the
Act;
(vi) Habitual late filers/non-filers of TDS Statement (late filing/non-filing is closely linked
to late payment or non/short deduction);
(vii) Negative growth in TDS payment as against healthy growth in Advance tax payment;
(viii) Cases where frequent corrections have taken place and also where the name of
deductors is changed on regular basis;
(ix) Cases of sick units or units with negative operating margins (as indicated in Audit
report u/s 44AB of the Act);
(x) Grievance petition filed by the deductee;
(xi) Analysis of case laws decided in favour of Revenue.
(xii) TDS evasion found during the search u/s 132 and survey u/s 133A of the Act.
(xiii) Information available on TDS module of Insight portal.
(xiv) Work of pre-survey preparation and analysis of data that are available with various
Departments of Government and which is received by the Directorate of Systems on
regular basis. It can prove to be game changer for TDS related field actions. Directorate
of Systems to process the data received from various other departments and may pass on
the required information about high-risk cases to the field formation for conducting
preferably focused e-Enquiries or TDS surveys.
(xv) There had been instances where TDS statements were revised by the deductor more
often resulting in probability for claim of fraudulent refunds or reduction in demand.
Identification and verification of such cases:
- where TDS statements have been revised multiple times in the previous years.
- where there is substantial decrease in the default amount.
 P a g e | 49

5. Action on information of Defaulters available in 3CD Reports:

In online 3CD Reports, the information is available on non-deduction, short deduction,

failure to deduct, failure to deposit, short deposit and delay in deposit. Moreover, the
information of failure to deduct and lower deduction under wrong section is not available in
TDS statements. Therefore, the data of 3CD reports is very useful. Action can be taken in
this regard by the AOs to boost revenue and improve compliance. Directorate of Systems
to generate the Reports for use by TDS AO and provide this report pertaining to A.Y. 2020-
21 by 31.10.2021. Further report pertaining to AY 21-22 must be provided within two months
of last date for filing of return for corporate tax payers. Verifications of mismatch in 3CD
reports and TDS statements must be carried out in top 100 cases in each CIT charge by the
Addl. CIT TDS.

6. Action Against Non-Filers

Non-filing of TDS statements results in consequential mismatch of TDS in the case of

deductee taxpayers and consequent avoidable grievances. Taxpayer can raise grievance
at TRACES website to flag missing credit in Form 26AS due to non-compliance on the part
of the deductor. This feedback in the form of tickets is forwarded to the relevant field TDS
officer in the form of tickets for further action. List of non-filers of TDS statements is also
available to the field TDS Officers on the MIS section of the AOs portal. The AO should use
these two facilities to take action against non-filers.

7. Monitoring of Govt. deductors

a) Monitoring of Monthly TDS remittance from salaries on monthly basis is required, both from
the private sector as well as Government Departments.

b) It is important to collect information from the State Government about the Plan Outlay of all
major contracts in the various departments and monitor TDS payments from the same and
also the sub-contracts involved therein. Focus should be made on compensations paid by the
Central and State governments especially for land acquisition and other types of rewards.

c) It is settled law that State Government undertakings are separate legal entities and are
therefore, liable to Income-tax. It has been observed that the Banks have been defaulters in
non-deduction of TDS on interest to these State Governments PSUs, Corporations,
Autonomous Bodies and Development Authorities. This area needs sensitization and
education of deductors. Banks and Public Sector Undertakings are the key areas of focus in
the year. Professional fees paid by banks or by the customers for loans and credit ratings,
valuation of stocks, properties and other assets needs to be verified through the vagaries of
S. 194J.

d) Large scale non-compliance of TDS provisions by local bodies (especially Panchayats) has
been noticed in some regions. A special drive to ensure compliance by the local bodies can
be helpful in boosting revenue. Such drive can have three-pronged strategy to ensure (i) that
all local bodies having liability to deduct TDS obtain TAN (ii) coordination with their
administrative department and special drive for their education and (iii)surveys.
 P a g e | 50

e) Collection of tax at source is an area to augment considerable revenue as more areas have
been included under this provision. TDS officers may conduct random surveys to ensure
compliance.

8. 201(1)/201(1A) proceedings in consequence of survey-

Section 201 proceedings consequent to survey for all the years of one assessee must be
completed together and expeditiously.

9. Recovery Surveys:
a) All recovery surveys of the charges other than Central charges will be conducted by the
officers of TDS charge. The recovery survey will be approved by a Collegium comprising
of two officers of the level of Pr. CCIT or CCIT, which will include the CCIT of the concerned
jurisdictional charge and CCIT(TDS) or Pr. CCIT of the region where there is no CCIT(TDS).

b) There will be no Collegium for TDS charges. TDS charges will conduct recovery surveys
in their cases after the approval of CCIT(TDS) or where there is no CCIT(TDS) after the
approval of Pr. CCIT of the region.

c) Guidelines prescribed vide CBDT F.No. 275/29/2020-IT (B) dated 16th October, 2020 are
to be followed.

d) Officers of TDS Wing will involve AO or TRO concerned.

e) Officer of the TDS Wing shall prepare the survey report and upload the same on ITBA as
per Survey Manual and extant instructions in this regard and will also send a copy of
survey report to AO/TRO concerned.

10. Follow up of important sections introduced in recent years

In the recent past, a number of sections have been introduced in Chapter XVII-B/BB of the
Act providing for deduction of tax on-
(a) Rent (above specified amount) by individuals or HUF not liable to audit under
section 44AB of the Act (Section 194-IB),
(b) Payment in the nature of contract, commission or professional fees (above specified
amount) by individuals or HUF not liable to audit under section 44AB of the Act
(Section 194 M),
(c) Withdrawal of cash exceeding 1 crore rupees (section 194 N),
(d) Payment made to an e-commerce participant for sale of goods or provision of
services on digital or electronic platform (Section 194-O),
(e) Payment by a buyer, subject to certain conditions, to seller for purchase of any
goods of the value exceeding Rs. 50 lakh (Section 194-Q).
(f) TDS/TCS on non-filer at higher rates (206AB and 206CCA)

These provisions being recent or newly inserted need to be covered to their potential in the
TDS enquiries.

******************
 P a g e | 51

CHAPTER-X

WIDENING OF TAX BASE

Widening of tax base is one of the important tools in augmentation of revenue and hence the
same is one of the key objectives of the CBDT. Over the years various initiatives have been
taken to increase the tax base and the number of new return-filers, which have shown
appreciable results.
2. Collection of data through various sources and analysis is the key in widening of tax
base. Organized data collection in the department is mainly through following methods:
• Electronic filing of IT returns and forms (e-filing).
• Submission of TDS/TCS statements by deductors in electronic form (eTDS).
• Mandatory furnishing of statement by various agencies for specified financial
transactions.
• Collection of information by way of automatic exchange of information under FATCA
and CRS.
• Collection of information from third parties under Approved projects of I&CI.
• Compulsory quoting of PAN for certain specified transactions.
3. New opportunities for identification of potential tax payers have opened up due to data
mining and data analytics conducted by the Systems Directorate, Directorate of I&CI,
Investigation Wing and TDS/TCS charges. The effective utilization of these data by the field
officers would result in identification of a large number of potential tax payers. In addition to
use of disseminated data, local intelligence, inputs from market associations, trade bodies and
professional bodies should also be gathered and used to identify non-filers. The awareness
meetings and outreach programmes (refer chapter XIV) may also be used to encourage
voluntary compliance, especially in Tier 2 & 3 cities. The Principal Chief Commissioners of
Income-tax should also develop a regional strategy keeping in view the specific profile of
these regions to widen the tax base this year.

4. As per section 139 of the Act, various persons are required mandatorily to file returns,
viz. Companies & Firms (including LLP) etc. The Data of registered Companies and LLP are
available with the Registrar of Companies (ROC)/Ministry of Corporate Affairs (MOCA).
Though registration of firms with Registrar of Firms is optional but many firms are registered
with the Registrar of Firms and data is available with them. The Finance Act, 2019 has mandated
compulsory filing of returns where a person has entered into certain high value transactions.
The Finance Act, 2020 and 2021 have widened the scope of TDS and TCS in respect of certain
transactions. Besides, section 285BA of the Act provides for filing of statement of specified
financial transactions and reportable accounts. The Directorate of Systems should collect data
in these respects and forward the same to the field formations by 30.09.2021, so that such data
can be effectively utilized for widening of tax base by taking suitable action in case of non-
filers.
 P a g e | 52

5. Filer base consists of persons who have filed return in any of the previous three
Financial Years. New filer is defined as a person who is not included in the filer base at the
beginning of the year but has filed return in the current financial year. Over the years, while
fixing the Pr. CCIT (CCA) Region wise targets of widening of tax base, the CBDT had been
taking into account the buoyancy in economy, both in organized as well as unorganized sector,
filer base at the beginning of financial year, new filers added in immediate previous year and
Non-filers identified through the latest NMS cycle. In the current financial year, the target for
adding new filers is left to the discretion of each Pr. CCIT region keeping in mind the prevailing
economic scenario due to the COVID 19 pandemic. Pr. CCsIT may communicate the target so
allocated to CBDT by 31.10.2021. Directorate of Systems will co-ordinate with each Pr.CCIT
region and provide data with regard to NMS cycle/dropped filers/dropped tax payers etc.by
15.10.2021.

******************
 P a g e | 53

CHAPTER XI
INTELLIGENCE AND CRIMINAL INVESTIGATION

Directorate of Intelligence and Criminal Investigation is expected to play a pivotal role

in Promotion of voluntary compliance through non-intrusive tax administration and
strengthening the mechanism for tax deterrence which are the new cornerstones of the present
tax administration.

(2) In the recent past, there have been many initiatives in strengthening of the mechanism
or organized collection of information in form of “Statement of Financial Transactions (SFT)”
from specified sources who are required to file the same online. The Directorate of
Intelligence and Criminal Investigation (I&CI) has been entrusted with the responsibility of
ensuring timely, complete and accurate filing of SFT. The core function of I&CI Directorate
emanates from Section 285BA of the Act read with Income Tax Rules, 1962 (hereafter referred
to as ‘Rules’) related to the filing of SFT by various reporting entities. As per rule 114E of the
Rules, a reporting entity is required to file statement of financial transaction in Form 61A in
respect of transactions of the nature specified in the rules. Therefore, if Reporting Entity has
undertaken any such reportable transaction of the nature specified, there is a legal obligation
to file SFT in Form 61A for the relevant financial year.

(3) The responsibility of the Directorate of I&CI includes compliance management of

submission of Form 61B by reporting entities. Under various international agreements, India
provides financial information related to tax payers of other countries having reportable
accounts in Indian jurisdiction in specified format. Requirement of filing details in Form 61B
arises from implementation of FATCA (Foreign Account Tax Compliance Act) and CRS
(Common Reporting Standard). For this purpose, rules 114F,114G and 114H are incorporated
in the Rules. These rules provide for due diligence procedure for identification of reportable
accounts. Once a reporting entity identifies reportable accounts, information about such
accounts is to be filed in Form 61B for the calendar year.

(4) For effective and efficient conduct of its core functions assigned u/s 285BA of the Act,
organising outreach programs and educating the filers is a critical compliance management
function of Directorate of I&CI. Further, running of Specific Pilot Projects to identify areas,
which can be of importance for deepening and widening of the tax base.

(5) The Directorate of Systems facilitates capturing of data from reporting entities for
Directorate of I&CI for further monitoring, verification and dissemination thereof. The
Directorate of I&CI has the primary responsibility of ensuring complete and correct reporting
by all reporting entities. The Directorate of Systems has created reporting portal ‘Insight’,
wherein registration of reporting entities take place and on this very portal SFTs are received
online by the Directorate of Systems. Work is in progress at the level of Directorate of Systems
for developing various functionalities to be made available to Directorate of I&CI to enable
them to discharge their role of compliance management, in accordance with the provisions of
sections 285BA (and corresponding Rules) and 271FA/271FAA of the Act through electronic
mode. For timely compliance management by I&CI Directorate it is imperative that
functionalities required for these are made functional by the Directorate of Systems to the
satisfaction of I&CI. Hence, in the Table below functionalities to be made operational by
Systems are also listed alongside the targets for I&CI Directorate.
 P a g e | 54

TABLE –13
S. Activity Directorate of Systems Directorate of I&CI
No.
Role Compliance Role Target

A Reporting Compliance Management

A.1 Outreach and Training

A.1.1 Conducting regular This year outreach At least one

seminars and programs should per quarter
interaction programs be conducted
[each DIT]
for filers of Form 61A mostly through
(SFT). online Webinars.
Letters and emails
should be sent
along with
pamphlets, if any,
to Reporting
Entities
highlighting their
responsibilities of
SFT filing.
A.1.2 Conducting regular One such Webinar will be Subsequently Directorates of major
seminars and conducted centrally in co- cities should conduct Webinars for
interaction programs ordination with System filers of their regions
for filers of Form 61B Directorate.
by DGIT(I&CI) in
coordination with
Systems Directorate
and Competent
Authority

A.1.3 Conducting “Train the May be organized depending upon

Trainers” program for pandemic situation
officers of I&CI by
DGIT (I&CI)

A.2 Registration Monitoring

A.2.1 Review and updation To provide assistance in 31.08.2021

of enlisted entities for case of bulk uploading of
SFT (Form 61A) and list.
SRA (Form 61B)
A.2.2 Selection of To provide 31.08.2021 Selection of Within one
unregistered entities assistance for unregistered month of
for registration rule based entities for provision of the
verification based on bulk selection registration said rules and
System based rules and verification. functionalities.
functionality
for sending of
bulk mail to the
identified
 P a g e | 55

segment for
registration.

A.2.3 Collection of To provide 30.09.2021 Verification of Within 2 months

information u/s 133(6) functionality selected of functionality
of the Act to verify for issue of unregistered being
selected unregistered notice u/s entities for operational.
entities to determine 133(6) of the registration.
whether the entity is Act to
required to be unregistered
registered. entities on
ITBA/Insight
and capture of
response.
Systems
Directorate to
also provide
functionality to
capture result
of verification.

A.2.4 Issue of notice u/s To provide 30.09.2021 Notice u/s Notices to be

285BA(5) of the Act in functionality 285BA(5) of the issued after the
cases where enlisted for issue of Act to be issued. availability of
entity has not notice u/s the
complied with the 285BA(5) of the functionality.
obligation of Act to
reporting. unregistered
entities on
ITBA/Insight
and capture of
response.
Systems
Directorate to
also provide
functionality to
capture result
of verification.

A.2.5 Initiation of penalty u/s To provide 31.10.2021 To issue notice in 31.12.2021

271FA of the Act in functionality identified cases.
cases where enlisted for issue of
entity has not notice u/s
complied with the 271FA of the
obligation of Act and
registration/reporting. passing of
order for
unregistered
entities.
 P a g e | 56

A.3 Non-filer Verification

A.3.1 Selection of reporting To provide 16.08.2021 Selection of 31.08.2021

entities which have not assistance for cases
submitted SFT (Form rule based
61A) and SRA (Form bulk selection
61B) for FY 2018-19
and FY 2019-20using
system based rules.
A.3.2 Initiation of To provide 30.09.2021 Notice u/s Notices to be
proceedings u/s functionality 285BA(5) of the issued after the
285BA(5) of the Act to for sending Act to be issued. availability of
determine whether the online the
entity should have communication functionality.
submitted report with reporting
entities and
capture result
of verification.

A.3.3 Initiation of penalty u/s To provide 31.10.2021 To issue notice in 31.12.2021

271FA in cases where functionality identified cases.
enlisted entity has not for issue of
complied with the notice u/s
obligation of reporting 271FA of the
u/s 285BA(1) of the Act and
Act. passing of
order for
unregistered
entities.

A.4 Late Filer Verification

A.4.1 Selection of reporting To provide 31.10.2021

entities which have functionality
submitted reports for for rule based
earlier financial years bulk selection.
In the pandemic situation penal
beyond due date. provision for late filing need to be
avoided.
A.4.2 Initiation of penalty u/s To provide 31.10.2021
271FA in cases where functionality
enlisted entity has not for issue of
complied with the notice u/s
obligation of reporting 271FA of the
u/s 285BA(1) of the Act and
Act. passing of
order for
reporting
entities.
 P a g e | 57

A.5 Reporting Compliance Verification

A.5.1 Selection of reporting To provide 16.08.2021 Selection using 31.08.2021

entities with assistance for system based
inadequate/defective rule based rules.
reporting of SFT (Form bulk selection
61A) and SRA (Form
61B) for FY 2019-20
and FY 2020-21 using
system based rules.
A.5.2 Collection of To provide 30.09.2021 Issuance of Within 2 months
information u/s 133(6) functionality notice and of functionality
from reporting entities for issue of collection of being
or prospective notice u/s information. operational.
reporting entities to 133(6) of the
determine whether the Act to
entity had complied reporting
with the obligations entities and
u/s 285BA(1) of the capture of
Act. response in
predesigned
format.

A.5.3 Downloading of SFT System 30.09.2021 Checking of 31.10.2021

filed by reporting Directorate to collected
entities where I&CI provide information with
intend to match powerful utility the data
information collected to download downloaded
u/s 133(6) of the Act SFT from SFT filed in
with the transactions information in selected cases.
reported in the SFT. Excel format
with flexibility
to choose the
fields to be
downloaded.
In the current
utility even
basic data like
names of
transacting
parties, their
PANs, date,
etc. are not
captured.

A.5.4 Issuance of notice u/s To provide 30.09.2021 Issuance of Within 2 months

285BA(4) of the Act functionality notice u/s of the
where is it found that for sending 285BA(4) of the functionality
number of reportable online Act. being
transactions reported communication operational.
by the reporting to the
entities is incomplete reporting
entities and
 P a g e | 58

or incorrect in the SFT capture result

filed for that year. of verification.
The reporting
entity should
be specifically
asked to
upload report
on reporting
portal to
address the
inadequacies
and defects in
reporting.

A.5.5 Initiation of penalty u/s To provide 31.10.2021 To issue notice in 31.12.2021

271FA of the Act in functionality identified cases.
cases where enlisted for issue of
entity has not notice u/s
complied with the 271FA of the
obligation of reporting Act and
u/s 285BA(1) of the passing of
Act. order for
reporting
entities.

B Pilot Projects data collection/verification

B.1 Data Collection

B.1.1 Submission of status 30.09.2021

report of the project by
lead DsIT in all
pending Special Pilot
Projects approved
upto FY 2019-20.

B.1.2 Submission of final 31.03.2022

reports by lead DsIT in
all pending Special
Pilot Projects
approved upto FY
2019-20.

B.1.3 Submission of To give assistance and 30.09.2021

proposal of Special consultation in finalizing
Pilot Projects for F.Y. data structure and rules for
2021-22 to Member selection of high risk cases.
(Inv.), CBDT for
approval.
 P a g e | 59

The proposal would

include the scope of
data collection, data
structure and
indicative rules for
selection of high risk
cases for verification.

B.1.4 Completion of data To provide functionality to 31.12.2021

collection and upload bulk upload the collected
for collected data of all data.
pilot projects
approved by the
Board.

B.2 Risk Analysis

B.2.1 Selection of high risk To provide 30.09.2021 Selection of high 30.11.2021

cases for verification assistance in risk cases in
by applying system finalizing coordination with
based rules. selection rules Systems
and in rule Directorate.
based
selection.

B.2.2 Analysis of high risk To provide 31.12.2021 Electronic 31.03.2022

cases functionality dissemination of
for verification actionable cases
and electronic to designated
dissemination unit.
of actionable
cases to
designated
unit.

C Capacity Building

C.1 Conducting regular To be organized by the DIT(I&CI)(Hq) to co-ordinate with

training and Directorate of Systems on Systems Directorate for finalizing
workshops for officials newer utilities developed by the topics and date and time of
of I&CI through online them. Webinars.
Webinars.

******************
 P a g e | 60

CHAPTER – XII
EXCHANGE OF INFORMATION UNDER TAX TREATIES
Tackling offshore tax evasion, tax avoidance and unearthing of unaccounted money stashed
abroad have become a pressing concern for governments all around the world. Tax
Treaties are the legal instruments which provide a legal obligation on a reciprocal basis for
providing various forms of administrative assistance, including Exchange of Information.

2. Despite the existence of legal instruments for administrative assistance and the
willingness of our treaty partners to provide information, these provisions are still
underutilized, largely because officers of the tax department are not fully aware of the
provisions and need guidance for framing effective requests for information under
appropriate legal instruments. There is also a need to streamline our processes with a view
to respond to clarification queries / feedback requests / information requests of FT&TR
Division of CBDT and/or foreign authorities in a timely manner.

In view of the above, the Key Result Areas are as under:

TABLE-14
A. Making and Responding to requests for information under Exchange of Information
provisions of tax treaties
S. Key Result Target/ Activity Timeframe by Reporting
No. Area
1 Making Where information/ evidence At least one Quarterly, in
requests available in foreign Countries/ month before the prescribed
for jurisdictions may be necessary the time barring formats by
information for the purposes of assessment/ date. Where each Pr.CIT/
under investigation, request for time available is Pr.DIT/
Exchange information in time-barring cases less than one CIT/DIT as
of should be made under the month, applicable by
Information provisions of tax treaties through request to be 15th of the
provisions the FT&TR Division, as per the sent only with month following
of the tax procedure prescribed in the the approval of the quarter.
treaties Manual on Exchange of CCIT/DGIT(Inv.)
Information, at least one month concerned.
before the time barring date.
2 Clarification sought by foreign Within 15 days
authorities in of receipt by Pr.
respect of EOI CIT/ Pr.
requests should be provided in DIT/CIT/DIT
time. concerned.
3 Initial feedback on Within 15 days
completeness of information of receipt by Pr.
and/or closure of request CIT/ Pr.
DIT/CIT/DIT
concerned.
4 Final feedback on utilization Within one Annually, by
of information including month of 15th April of
additional income completion of the succeeding
assessment or year by each
launching of Pr.CIT/
Pr.DIT/CIT/DIT
 P a g e | 61

assessed/addition prosecution as applicable.

to returned
income
made/additional
tax demand
raised on
completion of
assessment or
information
about
launching of
prosecution should
be provided to
FT&TR
Division.
5 Handling Requests In cases, where the Quarterly
requests received from information can be report to be
made by foreign tax provided by accessing submitted by
tax authorities for the database of the each Pr.
authorities information to Income Tax CCIT /DGIT (Inv)
of foreign tackle tax evasion Department, for by 15th of the
countries and avoidance in example, current month
their country address or taxes paid by following the
under the the assessee in India, the quarter.
provisions of the same must be provided
tax treaties should within 15 days. In other
be given high cases, information
priority by the should be provided
officer concerned within 30 days.
and all efforts
should be made to In case information
provide cannot be provided
comprehensive within 30 days, on
and quality completion of 30 days, an
information in a interim report must be
timely manner. sent immediately which
may contain the
information collected so
far, difficulties in
collecting the
information, further
efforts being / to be
made for collecting the
requisite information,
likely date by which the
full and complete
information will be
provided, etc.
 P a g e | 62

B. Capacity Building
1 Training on Each Pr.CIT/Pr.DIT/ CIT/DIT 30.09.2021 Consolidated
making shall conduct one-day training annual report
requests (online or offline) programme for to be
under tax the officers of his/her charge on submitted to
treaties Exchange of Information (EOI) FT&TR Division
and including drafting of EOI by 31.10.2021
maintai requests. by each
ning Pr.CCIT/
confide The training programme should DGIT(Inv.)
ntiality also cover data protection .
safeguards and guidelines to
maintain the confidentiality of
information exchanged under
tax treaties.

******************
 P a g e | 63

CHAPTER – XIII

COMPUTER OPERATIONS

TABLE-15

Secti Key S.No Functions Time Frame Remarks

on Result
Area

A I. T. 1 Preparation and updating of 30.09.2021 To be done

INFRASTRU Hardware and software and then by RCCs.
CTURE inventory and linkage to HRMS quarterly
hierarchy on ITBA system as
per process or on stand-alone
basis. (Separately for network
and non-network devices).

2 Assessment of additional 30.09.2021 To be done

requirement of IT and then by RCCs.
Infrastructure including RSA quarterly
tokens, Desktop PCs, DSC
and related equipment,
Bandwidth. Identification of
requirement of new network
nodes and sending the
requirement.

3 Review and reporting of Monthly To be done

bandwidth congestion at any by RCCs.
site in the region
through R-NOC facility.

4 Preparation, review and 30.09.2021

correction of linkage of HRMS and then To be done
hierarchy with room and quarterly by RCCs.
building to facilitate online
building wise address book.

5 Configuration of IPSec VPN 16.08.2021, and ITBA and

on the official laptops, and then monthly RCCs.
sharing of the Hardware IDs. update.

6. Facility Management Services On urgent Directorate

(FMS) in local areas to be basis. of Systems,
looked into and infrastructure CsIT (Admin
support staff to be made & TPS) &RCC
available.

B I. T. 1 Implementation of Security 30.09.2021 and Work From

SECURITY Policy as per ITD Information continuous Home and
Security Policy issued with review. access of
 P a g e | 64

Secti Key S.No Functions Time Frame Remarks

on Result
Area

CISO ITBA over

Instruction No. 2/2020 dated internet
27 November 2020). using VPN,
requires
strict
adherence to
the
Instructions
issued by the
Systems
Directorate
from time to
time. To be
done by
DIT(S) &
RCCs.

2 Implementation and 30.09.2021 To be done

maintenance of desktop and then by CsIT
policy which includes quarterly (Admin &
removal of unauthorized TPS).
hardware and software on all
networked PCs.

3 Appointment of Nodal Offices 30.09.2021 To be done

(by Designation) in each and then by CsIT
Office Building (under quarterly (Admin &
intimation to Systems TPS).
Directorate) and
assigning the security,
upkeep of Communication
Room and other IT
infrastructure.
Inspection and upgrade, if
required, of Communication
Rooms as per the advisory of
the Directorate of Systems.

4 Inspection of Network Comm 30.09.2021 and To be done

unication Rooms across all then quarterly by RCCs.
locations and verification of
Checklist parameters.

C I. T. 1 CsIT (Admin & On regular –

TRAINING TPS)/RTIs/MSTUs to organize basis.
training programmes for ITBA
applications including HRMS.
 P a g e | 65

Secti Key S.No Functions Time Frame Remarks

on Result
Area

2 CsIT (Admin & TPS) along As per Training –

with RTIs/ MSTUs to organize plan, to be
and manage training for circulated by
Project Insight. Project Insight
team.

3 CsIT (Admn. & TPS) along On a fortnightly With

with RTIs/ MSTUs to organize basis. Faceless
and manage training for: Schemes, use
a. General Computer of computer
proficiency and usage for by the
users of all levels. Officers and
b. Sensitising the users on Staff shall
security of increase
computer/system to avoid manifold. It is
any data breach. essential that
c. Use of secured access of the
ITBA through IPSec VPN. officers/staff
are
competent in
working on
computers.

D PAN AND 1 Migrating of PANs from OLD Monthly. To be done

AIS and ORPHAN Jurisdictions to by RCCs.
jurisdictional AO.

2 Inspection of TIN Facilitation Monthly. To be done

Centers of Service Providers by RCCs.
in the jurisdiction of the RCCs
and submission of check
list/Inspection
report.

3 PAN Core-field updation Pendency To be done

requests and grievances report should by RCCs.
received online through be submitted
Service Providers on daily by 10th of every
basis. month to the
DGIT (Systems).

4 Circulation of lists of Pendency To be done

deleted/deactivated PANs report should by RCCs.
received from PAN Service be submitted
Providers to the respective by 10th of every
AOs, train the AOs on month to the
restoration of deleted DGIT (Systems).
/deactivated PANs, if needed
 P a g e | 66

Secti Key S.No Functions Time Frame Remarks

on Result
Area

and send back the response

received from AOs to the
respective Service Providers
on regular basis.

5 Event marking of PANs Pendency

report should
be submitted
by 10th of every
month to the
DGIT (Systems).

6 Compliance of the Third- Pendency –

Party Verification report report should
received from PAN Service be submitted
Providers. by 10th of every
month to the
DGIT (Systems).

E Problem 1 Updation of Instructions, Within one ITBA/Insight/

Resolution FAQs, video tutorials, list of week of issue IEC
resource persons etc. on
ITBA, Insight platforms etc.

F HRMS 1 Updating/Correction 16.08.2021 & To be done

Standardization of hierarchy, then quarterly. by RCCs.
roles, privileges, AO
codes/Position codes for all
the offices on ITBA system.

G TDS 1 Allotment of TAN, Core field Pendency To be done by

correction and Address report should RCCs.
updating. be submitted
by 10th of every
month to the
DGIT (Systems).

******************
 P a g e | 67

CHAPTER - XIV

COMMUNICATION STRATEGY

The outbreak of COVID-19 pandemic has caused unprecedented challenges across the
globe. This year is full of challenges both for the Taxpayers and the Department, requiring
effective and transparent communication for demonstrating accountability and sensitivity with
the stake-holders - the tax-professionals, the tax-payers, the citizens at large, trade bodies,
representatives of commerce & industry etc. The thrust should be to strengthen the trust in
the tax-administration.

2. The Pr.CCsIT & CCsIT need to play the critical role of leaders for a proactive
engagement with citizens through outreach programme. In all such engagements with the
stakeholders, all major government decisions that significantly impact the citizens or
envisage a major paradigm change – either in policy or delivery of public services should be
conveyed and emphasized upon.

3. In view of the COVID-19 crisis, the focus should be on an effective communication

strategy, maintaining various norms of social distancing and thereby organizing large
meetings or visiting outside office premises for outreach programme should be discouraged.
Therefore, usages of technologies by involving different media viz social, print, electronic etc
are the need of the hour.
To ensure the same, Key result areas and Targets are stipulated as under:

TABLE-16
S. No. Key Result Areas Target Action By
1 Organizing The Pr.CCsIT/CCsIT should identify the Pr.CCsIT/CCsIT
Interactive sessions top 25 taxpayers of their charge and
with stake holders hold an interactive session, through
electronic mode, viz. Webinar/VC etc,
to assess the general trend in the
economy, especially the areas in which
the taxpayers are engaged and
bottlenecks/problems faced by them in
achieving optimal growth.
Grievances to be redressed in the
manner possible/desirable. Policy
issues raised to be brought to the notice
of the CBDT.
Such interactions should be held in the
first week of September, December and
March.
The Pr.CsIT/CsIT should carry out a Pr.CsIT/CsIT
sectoral analysis of their charge and
identify top 10 assessees in each sector.
ONE interactive session, through
electronic mode, viz. Webinar/VC etc,
every month should be carried out with
 P a g e | 68

these sectors (one sector in one month)

assessing the performance of the sector
and identifying the difficulties faced and
other grievance areas for expeditious
redressal. Policy issues raised to be
brought to the notice of the CBDT.
2. Organize interactive ONE programme every month in each Range Heads
outreach sessions for Pr.CsIT/CsIT Charge, through
taxpayers to educate electronic mode, viz. Webinar/VC etc.
them on specific
initiatives/provisions/
procedures/schemes
3. Talks in schools and ONE digital session every quarter by Range Heads
other educational way of Webinar/VC with School and
institutions other educational Institutions

ACTION ITEMS
(1) Taxpayer outreach programs shall be conducted so that every Range Head conducts
interactive sessions/workshops to educate taxpayers on specific tax provisions and
procedures and to highlight initiatives taken by the Department. This is a critically important
area for achieving the objectives of a fair and transparent administration and high standards
of taxpayer service, which ultimately translate into higher levels of voluntary compliance.
(2) The topics for interaction should be identified based on parameters such as low tax
awareness, amendments in Act, new procedures/schemes, sectors where there is low tax
compliance etc. Sessions may also be conducted in co-ordination with Industry/
Trade/Professional associations.
(3) The educational institutions to be covered should include different kinds of institutions i.e.
Professional Colleges, Management Institutions, School etc. to be decided by the Pr.
CsIT/CsIT from among the Institutions falling within their territorial jurisdiction so as to avoid
any overlap. In case a Pr.CIT/CIT does not have any institutions in his territorial jurisdiction
or does not have territorial jurisdiction, the institution to be covered by his officers/officials
should be decided by the concerned CCIT in consultation with the Pr. CCIT keeping in mind
practical aspects and to ensure maximum coverage within the region.
(4) Internal communication:
(a) While the communication strategy with the stakeholders outside the department needs no
further emphasis, it is felt that internal communication amongst the officers & officials within
the department is equally important. The Pr.CsIT/CsIT should, therefore, ensure through
regular interactions/ seminars/ workshops (at least once in a month), that the officers and
officials are abreast of the latest developments in terms of provisions of law and
pronouncement of the appellate authorities. Another objective to be achieved through such
interactions should be to ensure that the conduct of the officers and officials is non-adversarial
but alert & efficient.

(b) Maintenance of high standard and ethics in service delivery is of paramount importance.
Hence, the Pr.CCIT/CCsIT should organize lectures/seminars/workshops for the
officers/officials in the field on ethics in governance, once in every quarter.

******************
 P a g e | 69

CHAPTER - XV

HUMAN RESOURCE MANAGEMENT

Writing of Annual Confidential Report/Annual Performance Appraisal Report (ACR/APAR)

and its collection and maintenance is an important aspect for human resource management
for any organization to ensure the development and progress of the organisation. It is also
important because APARs are required for various purposes such as-
1. Deputation
2. Empanelment of officers at the level of JS and above
3. Nomination for trainings etc.
Accordingly, Custodian in O/o Pr.CCIT (CCA) should ensure that the following timelines are
met:
a) APARs are generated and NRC workflows created by the Primary Custodians in O/o
Pr.CCIT(CCA) and by Alternate Custodians for the Officers Reported Upon in their
respective field formations.
b) Where the Officer Reported upon has not submitted the self-appraisal within the
specified time and Reporting and Reviewing Authorities have failed to initiate the
APAR within the stipulated time, the Competent Authority should ensure that the
explanation of the officers who have failed in discharging their duty of writing the
APAR is called for and in the absence of proper justification a written warning for
delay in completing the APAR is placed in the APAR folder of the defaulting officer (OM
No. 21011/02/2009-Estt.(A) dated 16.02.2009).
c) Removal of deficiencies in APARs of previous Reporting Years for the purpose of DPCs
for promotions against the vacancy year 2022 and previous vacancy years is done
within the timeframe as per the deficiency lists uploaded by the Directorate of HRD on
irsofficersonline.gov.in.
d) APAR dossier is completed within the next 6 months either with the relevant APAR or
the required 'No Report Certificate" for valid reasons for Reporting Year 2020-21.

The Pr. CCsIT may also ensure that the following timeline as laid down for the entire APAR
process for FY 2021-22 is strictly adhered to:

TABLE-17

S. Activity Date by which Activity to

No. be completed
(1) (2) (3)
1. Distribution of blank APARs/ generation of APARs/ 31st July, 2021
creation of NRC workflows on SPARROW by
Primary/ Alternate Custodians
2. Submission of Self-Appraisal to Reporting Officer 31st August, 2021

3. Forwarding of report by Reporting Officer to 30th September, 2021

Reviewing Officer
 P a g e | 70

4. Forwarding of report by Reviewing Officer to APAR 15th November, 2021

Cell/Accepting Authority (Wherever provided)
5. Appraisal by Accepting Authority, wherever 15th December, 2021
provided
6. (i) Disclosure of APAR to the Officer 30thNovember, 2021
reported upon where there is no
accepting authority
(ii) Disclosure of APAR to the Officer reported 31st December, 2021
upon where there is accepting authority
7. Receipt of representation, if any, on APAR 15 days from the date of
disclosure
8. Forwarding of representation to the competent
authority
(i) Where there is no accepting authority for 31st December, 2021
APAR

(ii) Where there is accepting authority APAR 15th January, 2022

9. Disposal of representation by the competent Within one month of the
authority date of receipt of
representation by the
competent authority.
10. Communication of the decision of the competent Within 15 days of
authority on the representation by the APAR cell finalization of decision by
competent authority
11. End of the entire APAR process, after which APAR 31stMarch, 2022
will be finally taken on record
12. I. Identification of incomplete/deficient APAR 30th June, 2022
for FY 2021-22 and removal thereof on Annual
basis

II. Completion of Dossiers of RY 2020-21 in 30th September, 2022

pursuance to OM No. 21011/02/2009-Estt.(A)
dated 16.02.2009
13. Removal of all deficiencies for Officers figuring in the 31st October, 2021
Zone of Consideration for promotion to various
grades for panel year 2022 and previous panel years
in compliance to the deficiency lists released by the
Directorate of HRD on irsofficersonline.gov.in
through providing the relevant APARs/
recommending NRCs/ drawing NRCs for the relevant
deficient periods

1. The proper maintenance of Service Book of employee is an important issue related

to HR for any organization because it is required for various purpose e.g.
i. To resolve any dispute related to Service matter of an employee
ii. Timely increment
iii. Status of Leave availability at any point of time
iv. Retirement benefits etc.
The Pr. CCsIT may ensure that the following timeline as laid down for this exercise
for FY 2021-22 is strictly adhered to.
 P a g e | 71

TABLE 18

S. No. Action Point Time Frame

1 Updating and Scanning of Service i. 50% by 30th September,
Books on HRMS for all Employees 2021.
of ITD ii. Balance 50% by 31st March,
2022.
2 Updating RMM module on HRMS 7th of every month
for Sanctioned and Working
Strength of ITD.

3 Updating of Leave Module by i. 50% by 30th September,

updating Leave Balance of 2021.
Employees of ITD ii. Balance 50% by 31st March,
2022.
4 Updating of ID Card Management
Module through compulsory 30th September, 2021
issuance of all IDs on HRMS instead
of manual mode
5 Establishment of e-office of NIC till
the level of ACIT/ITO in all offices of 31st December, 2021
Income Tax Department
6 Preparation Civil List of the officers
of the service by CCA (Hq) 31st March, 2022

3. To give further impetus to ensure timely and proper implementation of the provisions
of the Sexual Harassment Act, 2013, the following action points are made as part of Central
Action Plan targets for FY 2021-22:
TABLE 19
S.No. Action Point Time Frame
1 Constitution of one Local Details of LCC and all ICCs to
Complaints Committee (LCC) in be conveyed to Pr. DGIT (HRD)
the headquarters of Pr. CCIT by 30th September, 2021.
region. The Internal Complaint
Committee (ICC) to be
constituted in all the
Independent office under the Pr.
CCIT region.
2 Completion of Inquiry on a Inquiry on all complaints
complaint by the ICC or LCC received till 31stMarch 2021, to
within 90 days. be completed by the ICC/LCC
by 30th September, 2021.
3 Organize workshops and One workshop/awareness
awareness programmes at program to be organized in
regular intervals for sensitizing each Pr. CCIT region by 30th
the employees with the provisions September, 2021.
of the SH Act, 2013
4 Submission of Annual Report by Annual Reports received by
the Internal Complaint Committee the Pr. CCIT from the
as mandated in the Act. LCC/ICC in their region to be
sent to Pr. DGIT(HRD) by 30th
September, 2021.

******************
 P a g e | 72

CHAPTER-XVI

INFRASTRUCTURE

To streamline office and residential infrastructure of the Income-tax Department, the following
actions are to be taken by the Principal Chief Commissioners of Income-tax and the
Directorate of Infrastructure within the time frame as stipulated below

TABLE 20

S.No. Key Result Area Time frame

A. On the part of Pr. Chief Commissioners of Income Tax

(i) Submission of Rent revision proposals to the Directorate 6 Months prior to

of Infrastructure the expiry date
of earlier
agreement

(ii) Updation of Asset Register and submission of information 31.08.2021

to the Directorate of Infrastructure

B. On the part of Directorate of Infrastructure

(i) Revision of House Allotment Rules for CBDT 30.09.2021

(ii) Operational Vehicles – Redesigning/Redrafting of 30.11.2021

Standard Operating Procedure (SOP)

(iii) Submission of all Infra proposals brought forward as on 30.09.2021

01.04.2021 to the Competent Authority

(iv) Submission of 95% of the fresh Infra proposals received 28.02.2022

up to 31.12.2021 to the Competent Authority

(v) Submission of rent revision proposals received from field Within 3 Months
offices to the Competent Authority of the receipt of
the proposal

(vi) Organization of sessions/workshops on Infrastructure 4

issues during F.Y. 2021-22

******************
 P a g e | 73

CHAPTER-XVII

MISCELLANEOUS

Actions on Global Entry Program (GEP)

Global Entry Program (GEP) is a US Customs and Border Protection (CBP) program that
allows expedited clearance for pre-approved and low risk travellers for entering the US
through automatic kiosks. India became a participant country in the GEP and it has been
operationalised with effect from 3rd July, 2017. The CBDT is required to give its
recommendation to CEIB on the status of GEP applications filed by Indian citizens as
CLEARED/ NOT RECOMMENDED, after verifying the credentials of the applicant on certain
specified parameters. An SOP has been framed for handling these applications, based on
which, the targets for disposal of GEP applications are as under:

Table -21

Authority Report to be submitted Time Frame

Pr. CCIT Report in Annexure-A after
verification of issues in SOP
through jurisdictional Pr. CIT Within seven working days of the
or CCIT(Central) and receipt of GEP application from
CIT(TDS) CBDT.
DGIT(Investigation) Report in Annexure-B after
verification of issues in SOP

******************